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A broader look at today’s business
Saturday, September 27, 2025 Vol. 20 No. 349
LOCAL BUSINESS SHOWS LOWER CONFIDENCE IN Q3 n
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Do your own spot checks, tourism roads may be next ghost projects, DOT told
By Cai U. Ordinario
T
HE typhoon season and ghost month made local businesses less optimistic in the third quarter, according to the Bangko Sentral ng Pilipinas (BSP). Based on the Business Expectations Survey (BES), overall business confidence index (CI) declined to 23.2 percent in the third quarter from 28.8 percent in the second quarter of 2025. Business confidence strengthened for the next quarter, with CI at 49.5 percent, while the outlook for the next 12 months softened to 48.1 percent. “Their dampened confidence was primarily attributed to the slack in demand during the ‘ghost month’ and the onset of the rainy and typhoon season,” BSP said. “Global headwinds, such as higher US tariffs, geopolitical tensions, and weaker foreign demand, also weighed on business confidence,” it added. In terms of inflation, the yearahead inflation forecast of businesses remained within the National
Marcos orders rice import ban extended beyond Nov 2
A LONG and winding road cuts through the green hills of Busuanga Island in Coron, Palawan, in this aerial view file photo. MIKHAIL DAVIDOVICH | DREAMSTIME.COM
By Ma. Stella F. Arnaldo Special to the BusinessMirror
A GROCERY shoppers line up at the checkout in Antipolo City in this file photo. The Bangko Sentral ng Pilipinas (BSP) reported improved consumer confidence in the third quarter of 2025, citing expectations of new income sources and easing food prices, with inflation forecasts remaining within the government’s 2 to 4 percent target. JUNPINZON | DREAMSTIME.COM
Government’s 2 to 4 percent target range for four consecutive quarters since the last quarter of 2024. BSP said businesses expect inflation to average at 2.1 percent, 2.3 percent, and 2.4 percent in the third quarter 2025, fourth quarter 2025, and in the next 12 months, respectively. “Firms also expect inflation over the next 12 months to remain within the National Government’s target range, indicating firmly an-
chored business inflation expectations. Within-target inflation supports investments and job creation,” BSP said.
Consumers less pessimistic
MEANWHILE, results of the latest Consumer Expectations Survey (CES) showed the overall consumer confidence index (CI) remained negative but showed improvement compared to last quarter.
BSP said the CI turned less negative to -9.8 percent in the third quarter of 2025 from -14 percent in the second quarter. A negative CI means more respondents are pessimistic than optimistic. The Central Bank said this improvement in the CI compared to last quarter stemmed from expectations of new income sources, higher earnings, and more working family members. Continued on A2
BOI eyeing completion of SIPP before yearend By Andrea E. San Juan
T PRESIDENT Ferdinand R. Marcos Jr. attends the inauguration and turnover of a rice processing system in Piddig, Ilocos Norte, on July 19, 2024. PRESIDENTIAL COMMUNICATIONS OFFICE
P
RESIDENT Ferdinand R. Marcos Jr. has ordered the extension of the rice import ban, which covers the period from September 1 to November 2, to support Filipino farmers and stabilize rice prices. “Bilang suporta sa ating mga magsasaka, mas mahabang rice import ban isinusulong ni Pangulong Marcos Jr.,” Presidential Communications Office (PCO) Undersecretary and Palace Press Officer Claire Castro said during a Palace press briefing on Friday. “Under the President’s directive, the two-month import suspension that should end on November 2 will be extended,” Castro added. Continued on A2
HE Board of Investments (BOI) is looking to finalize the 2025-2028 Strategic Investment Priority Plan (SIPP) before the year ends. During the Arangkada Philippines Investment Forum 2025 on Friday, Board of Investments (BOI) Director for Industry Development Evariste Cagatan unveiled the draft 2025-2028 SIPP. The SIPP, led by the DTI-BOI, is a three-year “rolling plan” that identifies priority investment activities for fiscal and non-fiscal incentives aligned with the CREATE MORE law. “Under Tier 1, we see industries that address modern basic needs. It also covers sustainabilitydriven industries, export activities, and those covered by special laws,” Cagatan said. She told reporters on the sidelines of the forum: “The target is to release [the SIPP] to OP [Office of the President] by Q4.” The proposed 2025-2028 SIPP Plan presented by the BOI official during the forum showed that in the “Modern Basic Needs” under Tier 1, projects that may qualify for incentives are those from these sectors: Agriculture, Fishery and Forestry; Manufacturing; Halal, Kosher and Organic Related Ac-
SENIOR lawmaker has expressed concern that the tourism roads being built by the Department of Public Works and Highways (DPWH) may have gone the way of the anomalous flood-control projects. At the hearing of the Senate Committee on Finance (Subcommittee H) on Thursday, Senator Loren Legarda, sponsor of the proposed 2026 budget of the Department of Tourism (DOT), told Tourism Secretary Christina Garcia Frasco not to rely on DPWH reports on the tourism roads that it is constructing, and instead ask DOT regional officials to actually check on such roads. “Having learned our lesson, everyone relies on reports, even if there’s no COA [Commission on Audit] funding, we have to be very careful. How would you know whether it’s been done? Maybe your regional provincial offices can look, spot check or have the DPWH put on their website and yours, or submit to the committee the detailed status of these roads leading to tourist destinations…. That’s also for your own protection,” said the lawmaker. To which Frasco said she has seen “many of these tourism roads” up close, but agreed on “the need to audit the DPWH’s report.” As per the DPWH’s report to the DOT, 882.28 kilometers of tourism roads were completed from 2022 to 2024, under the Tourism Road Infrastructure Program (TRIP). Per data from the Department of Budget and Management, over P46 billion was spent for the continuing construction of these roads.
New roads budget to DPWH?
SHE also reiterated, as she did in the House of Representatives, that there were no funds allocated to construct new roads. (See, “Lawmaker pushes restoration of P6-B tourism roads budget,” in the BusinessMirror, Sept. 8, 2025.) Still, Frasco said the DOT did not support the suggestion that the tourism roads budget be lodged with the agency instead of the DPWH, unless these are for new roads. DPWH’s proposed budget for TRIP next year is P3.55 billion, down from this year’s P6.1 billion allocation. “Year after year, we make recommendations based on data and based on demand from our regional offices, and year after year the funding for new roads is very small or zero, that is what prompted us to take a position that perhaps, it would be better that it will be lodged under DOT so that we are assured that [new] tourism roads are given priority,” she said in response to a suggestion from Finance Committee chair Sen. Sherwin Gatchalian. She said, however, that while the budget for new tourism roads could be lodged with the DOT, the DPWH will still construct them.
Arrivals target for 2026
AS this developed, Frasco said only 6.7 million international travelers are projected to arrive in 2026, considerably less than the 9.3 million the DOT originally targeted under its National Tourism Development Plan 2023-2028. “Considering the limitations in our funding, as far as promotions are concerned, we have been constrained to Continued on A2
BOOSTING INVESTOR CONFIDENCE Panelists Andrew Jeffries of the Asian Development Bank, Gonzalo Varela of the World Bank, DOF Assistant Secretary Nina Asuncion, ARTA Director Marbida Marbida, and Ricky Carandang of First Philippine Industrial Park, with Atty. Elaine Collado of Vriens & Partners as moderator, discuss reforms to strengthen the Philippine investment climate and ease of doing business during the Arangkada Philippines Investment Forum 2025 on Friday. The forum also featured the unveiling of the draft 2025-2028 Strategic Investment Priority Plan (SIPP) by the Board of Investments, which identifies priority activities eligible for incentives under the CREATE MORE law. PHOTO COURTESY OF ARANGKADA PHILIPPINES tivities; Services; Healthcare and Disaster Risk Reduction Management Services; Infrastructure and Logistics, and Energy. Falling under the Sustainability-Driven Industries, still under Tier 1, are Industrial and/or Hazardous Waste Treatment; Bulk Water Treatment and Supply; Wastewater Treatment and Environment or Climate Change-Related Projects. The first tier also includes export activities and special laws.
Meanwhile, Cagatan said Tier 2 includes goods and services not locally produced and import-substituting activities, while Tier 3 covers “highly strategic and innovation-driven” activities. The proposed 2025-2028 SIPP showed that projects related to the following will qualify for incentives: Defense-Related Activities; Industrial Value Chain Gaps and Food Security-Related Activities. Continued on A2
ACB LAUDS BM AS PARTNER IN BIODIVERSITY ADVOCACY The BusinessMirror received a Certificate of Appreciation from the ASEAN Centre for Biodiversity (ACB) for its “invaluable contributions as a partner in biodiversity conservation and restoration initiatives” during the center’s 20th anniversary celebration. ACB Executive Director Jerome L. Montemayor and ACB Director for Communications Pamela Rebloda presented the certificate to BusinessMirror Biodiversity Editor Lyn B. Resurreccion and reporter Jonathan L. Mayuga. ROY DOMINGO
PESO EXCHANGE RATES n US 57.9180 n JAPAN 0.3868 n UK 77.2858 n HK 7.4423 n CHINA 8.1206 n SINGAPORE 44.7727 n AUSTRALIA 37.8378 n EU 67.5556 n KOREA 0.0411 n SAUDI ARABIA 15.4427 Source: BSP (September 26, 2025)