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Archives: Business World Article

Peso weakens as volatility hits markets

Peso weakens as volatility hits markets

The peso dropped versus the dollar on Tuesday as global markets were hit with volatility due to political concerns in various countries and prospects of a US Federal Reserve rate cut next week.

The local unit closed at PHP 56.98 against the greenback, weakening by 29 centavos from its PHP 56.69 finish on Monday, Bankers Association of the Philippines data showed.

The peso opened Tuesday’s session almost flat at PHP 56.69 versus the dollar. It climbed to as high as PHP 56.66, while its worst showing was at PHP 57 against the greenback.

Dollars traded increased to USD 1.72 billion on Tuesday from USD 1.32 billion on Monday.

“The dollar-peso had a corrective bounce during the London session amid political uncertainty in France. The peso tracked the dollar’s strength during the session,” a trader said in a phone interview.

The peso corrected following its over one-month high close on Monday due to political concerns here and abroad and before the release of US inflation reports that could further support a Fed cut next week following the weak jobs data released recently, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Wednesday, the trader sees the peso moving between PHP 56.80 and PHP 57.20 per dollar, while Mr. Ricafort expects it to range from PHP 56.85 to PHP 57.10.

Overnight, US Treasury yields declined with the dollar on the prospects of lower interest rates and investors around the world grappled with political uncertainty in countries from Japan and Indonesia to France and Argentina.

A heavy election defeat for Argentina President Javier Milei’s ruling party in Buenos Aires province sent the Argentine peso to a record low.

Japanese Prime Minister Shigeru Ishiba resigned on Sunday, ushering in a potentially lengthy period of uncertainty at a shaky moment for the world’s fourth-largest economy, prompting the yen to fall against the dollar.

France’s fourth prime minister in less than two years, Francois Bayrou, lost a confidence vote on Monday, and parliament brought down the government in the euro zone’s second-largest economy over its plans to tame the ballooning national debt, deepening a political crisis.

And in Indonesia, stocks gave up early gains to finish down more than 1%, while the rupiah rose after Finance Minister Sri Mulyani Indrawati was ousted in a cabinet shake-up.

US investors were focused on the prospects for easier monetary policy, however, after Friday’s weaker than expected US labor data for August appeared to seal the case for a Federal Reserve interest rate cut this month. Traders’ expectations of more aggressive Fed easing are gradually increasing. — A.M.C. Sy with Reuters

Philippine shares edge up on bargain hunting, Fed bets

Philippine shares edge up on bargain hunting, Fed bets

Philippine shares inched higher on Tuesday on bargain hunting and mounting expectations that the US Federal Reserve will deliver its first rate cut for this year at its meeting next week.

The Philippine Stock Exchange index (PSEi) increased by 0.34% or 20.85 points to close at 6,122.71, while the broader all shares index rose by 0.23% or 8.81 points to end at 3,691.59.

“Philippine stocks cautiously edged higher on bargain hunting as investors step in to support prices following [Monday’s] drop,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message.

“The local market rose backed by the positive cues from Wall Street. This comes amid mounting hopes of a Fed rate cut in their meeting this month following the US’ dismal August jobs report,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a market report.

Wall Street’s main indexes gained on Monday on expectations that the US Federal Reserve could lower borrowing costs soon, Reuters reported.

Investors are expecting multiple rate cuts this year after a troubling nonfarm payrolls report on Friday confirmed a weakening US job market. The report, which had dragged down Wall Street in the previous session, has stoked fears of a potential slowdown in the world’s biggest economy.

Traders have fully priced in at least a 25-basis-point (bp) interest rate cut when the Fed wraps up its two-day policy meeting on Sept. 17, with interest rate futures reflecting a 10% chance of a 50-bp cut, according to CME Group’s FedWatch tool.

The Fed has kept its target rate at the 4.25%-4.5% range since December 2024.

Mr. Tantiangco noted that trading activity remained low on Tuesday, which shows weak market confidence. Value turnover increased to PHP 6.23 billion on Tuesday with 1.99 billion shares traded from the PHP 5.72 billion with 2.7 billion shares exchanged on Monday.

Almost all sectoral indices closed in the green on Tuesday. Mining and oil jumped by 2.1% or 234.95 points to 11,384.34; property climbed by 1.65% or 40.71 points to 2,500.37; services rose by 0.64% or 14.05 points to 2,196.28; financials increased by 0.28% or 5.81 points to 2,029.6; and holding firms edged up by 0.21 point to 5,049.72.

Meanwhile, industrials fell by 0.92% or 84.38 points to 8,997.84.

“The sector counters were mostly higher, except for industrials which was weighed down by index heavyweights Jollibee Foods Corp., Metro Pacific Investments Corp. and Universal Robina Corp.,” Mr. Garcia said.

“Ayala Land, Inc. was the day’s top index leader, climbing 3.9% to PHP 29.30. Globe Telecom, Inc. was the main index laggard, falling 2.99% to PHP 1,523,” Mr. Tantiangco added.

Advancers outnumbered decliners, 111 to 85, while 60 names were unchanged.

Net foreign selling dropped to PHP 215.89 million on Tuesday from PHP 340.8 million on Monday. — Alexandria Grace C. Magno with Reuters

Analysts see BSP pause in October

Analysts see BSP pause in October

The Bangko Sentral ng Pilipinas (BSP) may hold off further monetary easing in October after inflation rose to a five-month high in August, with analysts expecting the central bank to deliver its last interest rate cut for the year in December.

Union Bank of the Philippines (UnionBank) Chief Economist Ruben Carlo O. Asuncion said it would be difficult for the BSP to justify another reduction in borrowing costs next month given the rebound in price pressures.

“Given the upside surprise in headline and core inflation, a rate cut in October looks unlikely,” Mr. Asuncion said in an e-mailed reply to questions. “It is difficult to justify a BSP rate cut as both cyclical and structural inflation measures tilt upward.”

Security Bank Chief Economist Angelo B. Taningco said the Monetary Board would likely pause in October “in light of the rising inflationary pressures.” “However, we still maintain our view for the BSP to conduct its fourth 25-basis-point (bp) rate cut for the year in December,” he said in an e-mail.

Headline inflation quickened to 1.5% in August from 0.9% in July, mainly due to typhoon-driven spikes in vegetable and fish prices. It was faster than market expectations but slower than 3.3% a year earlier.

The August rate fell within the BSP’s 1-1.8% forecast but exceeded the 1.3% median estimate in a BusinessWorld poll of 16 analysts. It also marked the sixth straight month that inflation remained below the BSP’s 2-4% target.

For the first eight months, inflation averaged 1.7%, matching the central bank’s 2025 forecast.

Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc., said the August outcome would weigh heavily on the BSP’s next policy move.

“While inflation from the previous months went below analysts’ expectations, the August reading went beyond,” he said in a Viber message. “Thus, we may see a more cautious and calibrated approach from the central bank with regard to the timing of the next rate cut.”

In a report, Deutsche Bank also noted that inflation risks in the coming months could prompt a pause in October, though it still expects easing to resume in December.

The BSP lowered the benchmark interest rate by 25 bps to 5% on Aug. 28, its third straight cut since August 2024. In total, it has reduced rates by 150 bps this cycle.

BSP Governor Eli M. Remolona, Jr. earlier signaled that there could be room for one more adjustment before yearend but stressed that the easing cycle is nearly complete.

Emilio S. Neri, Jr., chief economist at Bank of the Philippine Islands, said the central bank’s stance reflects concerns about inflationary risks next year.

“(Mr. Remolona) is probably foreseeing the changes in inflation next year,” he told Money Talks with Cathy Yang on One News. “We will be on an uptick that could lead to a breach.”

“And if we aren’t able to control inflation expectations, that could lead the BSP to actually hike instead of cut,” he added.

Still, he said a cut later in the year remains possible, particularly if global developments support looser policy.

Fed cue

Nicholas Antonio T. Mapa, chief economist at Metropolitan Bank & Trust Co., said the Philippine central bank would likely align its decision with the US Federal Reserve’s next policy move and domestic growth data.

“We expect BSP to await more data points on inflation, see whether the Fed cuts in November and look to third-quarter GDP (gross domestic product) numbers for guidance,” he said in a Viber message.

If the Fed resumes easing, domestic growth stays modest and inflation trends align with the target, the BSP may consider another rate cut before yearend, he added.

Mr. Erece said labor market and growth conditions could justify another adjustment.

The Monetary Board will meet on Oct. 9 and Dec. 11 for its final two policy reviews this year.

Meanwhile, analysts flagged the increase in core inflation, which strips out volatile food and fuel items, as a key concern. Core inflation climbed to 2.7% in August, the highest in eight months, from 2.3% in July.

“The main surprise from our standpoint in the latest release is the jump in core inflation to an eight-month high,” Miguel Chanco, chief emerging Asia economist at Pantheon Macroeconomics, said in a note last week. “It’s worth remembering, though, that in the Philippines, core inflation still includes some elements of food and energy prices.”

Mr. Mapa said the uptick was driven by select food items outside the core basket that were affected by storm damage. “These food items, such as other vegetables, appear to have been impacted by the recent spate of storms and thus constitute a supply-side shock inflation episode,” he said.

Despite the August rise, core inflation averaged 2.4% in January to August, slower than 3.2% a year ago.

This shows companies are passing on more costs and demand remains firm, which the BSP is watching closely, Mr. Asuncion said.

The central bank expects full-year inflation to stay below target in 2025 before returning to within 2-4% by 2026 and 2027. Its forecast for 2026 is now 3.3%, while its projection for 2027 is 3.4%.

Pantheon Macroeconomics forecasts inflation at 1.8% this year and 3% in 2026, higher than its earlier 2.6% projection. “We continue to believe that the BSP will cut at least one more time before the end of 2025, by 25 bps, though it is unlikely to pull the trigger again until December,” Mr. Chanco said.

UnionBank likewise revised its forecast to 1.8% from 1.6%. — Katherine K. Chan

Metro Manila rental yields seen subdued amid high vacancies

Metro Manila rental yields seen subdued amid high vacancies

Residential rental yields in some parts of Metro Manila are expected to remain weak this year as developers grapple with unsold condominium units and elevated vacancy rates, property consultants said.

“The current oversupply of condominiums in Metro Manila has placed downward pressure on rental yields,” Jamie S. Dela Cruz, research manager at KMC Savills, said in an e-mailed reply to questions. “The exit of POGOs (Philippine offshore gaming operators), which previously boosted demand, has further softened the market.”

Data from Colliers Philippines showed rental yields in Metro Manila condominiums rose slightly to 4.2% in the second quarter from 4% in 2019. However, the firm said a meaningful recovery is unlikely in the near term.

“We do not see a significant improvement in Metro Manila residential yields for the remainder of 2025 up to 2026 as we are still projecting vacancy rates to hover between 25% and 26%,” Joey Roi H. Bondoc, director and head of research at Colliers Philippines, said in an e-mail.

Colliers data showed that as of the second quarter, 30,500 ready-for-occupancy units remained unsold. Of the total, 32% were from the lower middle-income segment valued at PHP 3.6 million to PHP 6.99 million, while 22% were from the affordable segment priced at PHP 2.5 million to PHP 3.59 million.

The Bay Area, Makati fringe, Pasig and Manila accounted for 35% of the unsold units in Metro Manila.

Mr. Bondoc also noted that rental rates in submarkets are heavily reliant on POGO tenants, such as the Bay Area, remain below pre-pandemic levels. Studio units there now lease for about P700 per square meter (sq.m.) compared with P1,200 per sq.m. before 2020.

The Bay Area — covering Pasay, Manila and Parañaque — posted the highest residential vacancy in the second quarter at 54%.

“Once we see a substantial improvement in vacancy rates and a corresponding rise in rents, then we project yields to marginally increase,” he said. “But given that we still have sizable unsold ready-for-occupancy units in Metro Manila, and with soft demand in the secondary market, we are not projecting a significant increase in yields over the next 12 months.”

Mr. Bondoc added that weak demand is partly tied to hybrid and remote work arrangements. “As a result, employees are no longer required to rent condominium units in Metro Manila and would rather go back to their home provinces and work from home.”

Still, property analysts said landlords could take steps to improve competitiveness.

“Unit owners can differentiate their properties by adding value — such as offering parking spaces, upgrading unit interiors and enhancing amenities such as internet, cable television and security features,” Ms. Dela Cruz said.

She said tenants who could support rental demand include employees under mandatory return-to-office policies, as well as expatriates and professionals who prefer renting to buying.

“As more companies enforce return-to-office policies, occupancy may gradually improve, supporting rental demand,” she said.

“Marketing efforts should focus on tenants with a strong preference for renting, like corporate clients, expatriates, and professionals who reside in nearby provinces but work in Metro Manila,” she added. — Beatriz Marie D. Cruz, Reporter

Peso jumps to one-month high as dollar struggles after weak jobs data

Peso jumps to one-month high as dollar struggles after weak jobs data

The peso jumped to an over one-month high against the dollar on Monday as weak US jobs data boosted hopes of a rate cut by the US Federal Reserve next week.

The local unit closed at PHP 56.69 per dollar, strengthening by 22.5 centavos from its PHP 56.915 finish on Friday, Bankers Association of the Philippines data showed.

This was the peso’s best finish in more than a month or since it ended at PHP 56.65 on July 24.

The peso opened Monday’s session stronger at PHP 56.777 versus the dollar. Its intraday best was at PHP 56.67, while its worst showing was at PHP 56.93 against the greenback.

Dollars exchanged went down to USD 1.32 billion on Monday from USD 1.62 billion on Friday.

“The dollar-peso closed lower as the market responded to the weak US NFP (nonfarm payrolls) release last Friday, which bolstered expectations that the Fed will cut rates this month,” a trader said in a phone interview.

The dollar was generally weaker on Monday following the decline in global crude oil prices and US Treasury yields, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort added in a Viber message.

For Tuesday, the trader sees the peso moving between PHP 56.50 and PHP 56.90 per dollar, while Mr. Ricafort expects it to range from PHP 56.55 to PHP 56.80.

The dollar remained on shaky ground on Monday after Friday’s weak US jobs report, which cemented expectations of a Federal Reserve rate cut this month, Reuters reported.

The dollar struggled to recoup its heavy losses after falling sharply on Friday on data that showed further cracks in the US labor market.

The nonfarm payrolls report showed US job growth weakened sharply in August and the unemployment rate increased to nearly a four-year high of 4.3%.

Investors ramped up bets of an outsized 50-basis-point rate cut from the Fed later this month following the release and are now pricing in a 10% chance of such a move, as compared to none a week ago, according to the CME FedWatch tool.

The dollar index edged down 0.2% to 97.7, having tumbled more than 0.5% on Friday.

“(The payrolls report) has resulted in the dollar index falling back below support at the 98.000-level although the negative impact on the US dollar is more modest than implied by the drop in short-term US yields,” MUFG currency strategist Lee Hardman said in a note.

“The weak nonfarm payrolls report for August has reinforced expectations that the Fed will resume cutting rates this month, and has even encouraged expectations that they could begin with a larger 50-bp rate cut similar to last September.” — A.M.C. Sy with Reuters

Stocks close lower as investors pocket profits

Stocks close lower as investors pocket profits

Philippine shares closed in the red again on Monday due to selling pressure amid corruption concerns and as investors pocketed their profits.

The Philippine Stock Exchange index (PSEi) declined by 0.76% or 47.27 points to end at 6,101.86, while the broader all shares index decreased by 0.26% or 9.93 points to 3,682.78.

“The local market dropped on the first trading day of the week as investors took profits following a two-day rally,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a report. “Investors also digested the latest developments in the corruption issues of the Philippines’ flood control projects.”

“The index started the week in the red as sellers dominated today’s market… Concerns over the current flood control issues may also be weighing on market sentiment,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The Philippine Senate on Monday continued its inquiry into alleged corruption in government flood control projects, with the contractors said to be involved in these initiatives naming some lawmakers, local government and Public Works department officials who they claimed received kickbacks.

Mr. Limlingan added that investors chose to stay on the sidelines before the release of August US consumer and producer inflation data this week, as these could affect the US Federal Reserve’s decision in its Sept. 16-17 meeting, especially after US labor reports released last week bolstered the case for a cut at the review.

“US equities eased last Friday after a record-setting run as investors paused to reassess momentum following softer labor data. Despite the mild pullback, sentiment remains constructive with optimism still present heading into the new week,” he said.

The majority of sectoral indices closed lower on Monday. Financials fell by 1.27% or 26.22 points to 2,023.79; holding firms decreased by 1.25% or 64.37 points to 5,049.51; services went down by 1% or 22.06 points to 2,182.23; and property retreated by 0.07% or 1.85 points to 2,459.66.

Meanwhile, industrials increased by 0.94% or 85.12 points to 9,082.22, and mining and oil climbed by 0.78% or 86.55 points to 11,149.39.

Value turnover declined to P5.72 billion on Monday with 2.7 billion shares traded from the PHP 5.97 billion with 2.27 billion shares that changed hands on Friday.

“Semirara Mining and Power Corp. was the day’s index leader, climbing 5.29% to PHP 34.85. DigiPlus Interactive Corp. was the main index laggard, falling 7.78% to PHP 19.92,” Mr. Tantiangco said.

Market breadth was negative as decliners outnumbered advancers, 107 to 87, while 52 names closed unchanged.

Net foreign selling was at PHP 340.8 million on Monday versus the PHP 100.42 million in net buying recorded on Friday. — Alexandria Grace C. Magno

Dollar reserves inch up to USD 105.9B

Dollar reserves inch up to USD 105.9B

The Philippines’ gross international reserves (GIR) inched up in August as the value of the central bank’s gold holdings hit a record high.

Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed that dollar reserves went up by 0.46% to USD 105.9 billion as of end-August from USD 105.4 billion at end-July.

Year on year, dollar reserves dipped by 1.8% from USD 107.857 billion in August 2024.

“The Philippines’ gross international reserves rose in August 2025 due to higher global gold prices and income from Bangko Sentral ng Pilipinas’ investments,” the central bank said in a statement.

Ample foreign exchange buffers protect the country from market volatility and ensure that it is capable of paying its debts in the event of an economic downturn.

BSP data showed the level of dollar reserves as of end-August is enough to cover about 3.4 times the country’s short-term external debt based on residual maturity.

It is also equivalent to 7.2 months’ worth of imports of goods and payments of services and primary income, more than double the three-month standard.

“The latest GIR level provides a robust external liquidity buffer,” the central bank said.

International reserves are the central bank’s foreign assets held mostly as investments in foreign-issued securities, foreign exchange and monetary gold, among others.

These are supplemented by claims to the International Monetary Fund (IMF) in the form of reserve position in the fund and special drawing rights (SDRs).

Central bank data showed the BSP’s foreign investments stood at USD 85.852 billion as of end-August, down 0.4% from USD 86.187 billion at end-July. Year on year, it fell by 7%.

The value of the central bank’s gold holdings climbed by 5.4% to a record USD 14.523 billion at end-August from USD 13.783 billion at end-July. It jumped by 42.1% from USD 10.221 billion as of August last year. Gold tends to perform well during economic uncertainty.

Foreign exchange holdings rose by 8.3% to USD 897.8 million as of August from USD 828.9 million in the previous month. Year on year, it went up by 13.7%.

The country’s reserve position in the IMF likewise edged up by 1% to USD 736.4 million as of end-August from USD 729 million in the previous month. Year on year, it rose by 1.4%.

SDRs — or the amount which the Philippines can tap from the IMF’s reserve currency basket — inched up by 0.2% month on month to USD 3.895 billion as of August from USD 3.889 billion. Year on year, it went up by 1.3% from USD 3.847 billion.

Meanwhile, net international reserves grew by 0.46% to USD 105.9 billion from USD 105.4 billion as of end-July. These refer to the difference between the BSP’s reserve assets and reserve liabilities, including short-term foreign debt, and credit and loans from the IMF.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the month-on-month increase in gold holdings was due to rising gold prices in the world market.

“(This was) largely due to the latest month-on-month increase in gold holdings by USD 740 million or 5.4% to a new record high of USD 14.5 billion as world gold prices gained by 4.8% month on month in August 2025 to new record highs to USD 3,600 per ounce on Sept. 5, 2025,” he said.

However, Mr. Ricafort noted this was offset by the USD 335-million month-on-month decline in foreign investments amid market volatility and the higher US tariffs that took effect on Aug. 7.

“For the coming months, the country’s GIR could still be supported by the continued growth in the country’s structural inflows from OFW (overseas Filipino worker) remittances, BPO (business process outsourcing) revenues, and exports (though offset by imports),” he said.

Mr. Ricafort said the government’s plan to reduce foreign borrowings may also affect the GIR level in the coming months.

“Still relatively high GIR at USD 105.9 billion… among three-year highs [and] could still strengthen the country’s external position,” he said.

The BSP expects dollar reserves to reach USD 104 billion this year and USD 105 billion in 2026. — K.K.Chan

 

Gen Z workers embrace ‘polyworking’ amid low wages, rising costs

Gen Z workers embrace ‘polyworking’ amid low wages, rising costs

Tristan C. Solinap,  23, juggles three jobs to keep up with his financial needs.

The young professional works as a program manager for public engagement in a local nongovernmental organization (NGO), a creative strategist for an Australian ad agency and a contractual documentation specialist for an international NGO.

Relying on a single paycheck, he said, was never enough.

“Before I got my side jobs, I was living paycheck to paycheck, budgeting every week just to get by,” he told BusinessWorld in a Zoom interview. “After paying the bills, I would have to think twice about whether I could even afford a simple fastfood meal.”

Now, with three jobs, his monthly income has jumped to P70,000 from P20,000, letting him put away savings and make small investments.

“Polyworking,” the practice of holding multiple jobs at once, has become more visible in recent years, especially among younger workers.

Forbes describes it as a “growing trend” in which employees manage several careers instead of sticking to one. Labor Secretary Bienvenido E. Laguesma in a Viber message said the concept might sound new but is essentially the same as what used to be called multiple job holding.

As a polyworker, Mr. Solinap carefully divides his time between his overlapping roles.

His day begins at 9 in the morning, when he tackles tasks for the ad agency. “Since my ad agency job is a production, it’s more time-bound. I have to meet deadlines everyday,” he said.

The local NGO job, which follows an output-based schedule, gets most of his attention in the afternoons and evenings. “Not much happens in the morning. Our meetings usually start in the afternoon, and if we need to report to the office, it’s typically around lunch or later,” he said.

Balancing two demanding jobs is possible, he said, because one requires more fieldwork while the other is purely online. Meanwhile, his project-based part-time job only needs him to submit reports every few months.

The Philippines’ underemployment rate — employees wanting longer working hours or more jobs — eased to 11.4% in June from 13.1% in May and 12.1% a year earlier, according to the local statistics agency. This translated to 5.76 million Filipinos looking for more jobs or longer working hours in June.

Side hustles on the rise

Polyworking has gained traction worldwide as workers seek flexibility and supplemental income.

The 2024 Gen Z and Millennial Survey Report by business consulting firm Deloitte Touche Tohmatsu Ltd. found that 45% of Gen Zs have at least one part-time or full-time side job. These range from selling products and offering online services to gig work, retail jobs, consulting and even running small businesses.

The report noted that financial stability is the key driver for multiple job holding, though other factors such as monetizing hobbies, developing skills and contributing to communities also play a role.

In the Philippines, there is still little data on polywork, though part-time work is legally recognized. “Generally, the contract of employment or work arrangement governs the rights and obligations of the employee and the employer,” Mr. Laguesma told BusinessWorld.

Complaints, he added, could be addressed through administrative proceedings or the courts if violations arise.

For many young workers, financial need is the strongest motivator for juggling jobs.

Twenty-four-year-old Pola C. Basaya balances two full-time roles: one as a global solution coordinator for an international company and another as a web development coordinator for a local firm.

“With the economy in the Philippines, prices are just too high,” she said. “It’s hard to keep up if you don’t have a high-paying job.”

Her combined income of about P50,000 a month now supports the lifestyle she wants. “Of course, I have needs. I need to buy things, I need to go out — I have to sustain that as well.”

Labor group Bukluran ng Manggagawang Pilipino (BMP) blames low wages and contractualization for the rise of polyworking among the youth.

Young workers are more vulnerable to becoming polyworkers due to low wages and contractualization, BMP National President Renecio S. Espiritu, Jr. said in a Viber message.

“Obviously, the young generation will suffer from polywork because centuries of traditional politics and dynastic rule pauperized workers and institutionalized starvation wages and contractualization,” he added.

He cited the surge in app-based gigs like Grab, Lalamove and Angkas as proof that many are forced to take on multiple jobs just to get by.

Data from the Philippine Statistics Authority’s 2022 Occupational Wages Survey showed that the average monthly salary in the country stood at P18,423. Meanwhile, global consulting firm Mercer projected a 5.5% rise in average salaries for 2025 — an increase that labor groups say will still fall short of addressing workers’ needs amid inflation.

Not all polyworkers are motivated purely by financial concerns. Some seek personal fulfillment or more career opportunities.

“A worker may want diverse types of work to avoid monotony, or maybe for personal satisfaction if the other job relates to a hobby or matter of personal interest,” Mr. Laguesma said.

The Deloitte survey found that 86% of Gen Z workers think having a sense of purpose is crucial to job satisfaction and well-being.

For Mr. Solinap, his side jobs provide a creative outlet. “I studied communications in college,” he said. “With my second job, I now have an avenue to express my passion for writing and producing content.”

The hidden costs

But polyworking comes at a price. Long work hours often take a toll on physical and mental health. “The downside will be prolonged work hours resulting in negative health effects and the quality of family life might also be affected,” Mr. Laguesma said.

Ms. Basaya’s biggest challenge is lack of sleep. “Sometimes, I know my body needs more rest, but I just can’t do it because I’m required to report to work or deliver outputs,” she said.

She admits becoming irritable from fatigue. Spending more than 10 hours a day in front of a laptop has also affected her body, prompting her to take short breaks to get sunlight or run errands.

“I’m lucky because both of my companies are not strict with work hours,” she said. “Whenever I need to run errands or exercise, I just inform my teammates that I’ll be logging off at a certain hour.”

Mr. Solinap, meanwhile, experiences burnout from time to time. “A lot of things are happening every day and sometimes I just want to be isolated and be away from people even just for a while,” he said.

Although he works to support himself, he admits that having several jobs compromises his self-care. “The most glaring impact is on my mental health. Most of the time I just want to lie in bed, lock my door and shut my windows.”

Labor groups warn that the normalization of polyworking reflects systemic neglect of workers’ welfare.

Polywork itself is unhealthy, and its proliferation in the Philippines is a sign that the government doesn’t care about the welfare of workers, Mr. Espiritu said. “What workers demand is a living wage and security of tenure, not multiple jobs to cope with inflation.”

He added that many companies in the country operate under “backward and feudal” practices, preferring to keep wages low to maximize profits rather than sharing productivity gains with employees.

For him, the real solution is investing in agriculture and manufacturing while institutionalizing living wages and job security. That will ensure full and dignified employment, he added.

Despite the drawbacks, young Filipinos like Mr. Solinap and Ms. Basaya continue to embrace polyworking as a practical way to survive — and even thrive — in today’s economy.

For them, multiple jobs mean freedom from financial anxiety, but also new challenges in health and work-life balance.

“I can now have my own savings and small investments,” Mr. Solinap said. “But the tradeoff is steep.”

Most days, he finds himself exhausted, burned out and struggling to take care of his mental health.

For Ms. Basaya, the challenge is more physical — managing long hours and sleepless nights. Yet both remain committed to polyworking, at least for now.

Their stories reflect a larger reality: for many young workers in the Philippines, one job simply isn’t enough. — Almira Louise S. Martinez, Reporter

Gov’t debt service bill jumps by 33% in July

Gov’t debt service bill jumps by 33% in July

The National Government’s (NG) debt service bill increased by 33% in July as the government ramped up interest payments, the Bureau of the Treasury (BTr) reported.

The latest data from the BTr showed that the debt service bill went up to PHP 108.06 billion in July from PHP 81.17 billion in the same month last year.

Month on month, the debt service bill surged by 65.88% from PHP 65.14 billion in June.

Debt service refers to the payments made by the government on domestic and foreign borrowings.

The bulk or 98.3% of debt payments was made up of interest payments, BTr data showed.

Interest payments stood at P106.22 billion in July, up 33.72% from PHP 79.43 billion in the same month in 2024.

Domestic interest payments increased by 49.88% to PHP 82.92 billion in July from PHP 55.32 billion in the same month last year.

Broken down, PHP 73.61 billion was for fixed-rate Treasury bonds, PHP 3.89 billion for Treasury bills (T-bills), and PHP 3.58 billion for retail Treasury bonds.

Interest payments for foreign borrowings went down by 3.36% to PHP 23.3 billion in July from PHP 24.11 billion in the same month in 2024.

Meanwhile, amortization payments rose by 5.4% to PHP 1.84 billion in July from PHP 1.74 billion in July 2024.

Principal payments on foreign debt went up by 6.49% to PHP 1.66 billion in July from PHP 1.56 billion last year.

However, amortization paid on domestic debt slid by 3.78% to PHP 178 million in July from PHP 185 million a year ago.

“(The) higher debt servicing bill is largely a function of larger outstanding debt since the pandemic that entailed higher interest payments and also principal payment,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message over the weekend.

Last week, the NG debt stock ballooned to a fresh high of PHP 17.56 trillion as of the end-July, exceeding its projected PHP 17.36-trillion ceiling by end-2025.

Mr. Ricafort also attributed the higher debt service bill to borrowings that financed the wider budget deficit in recent months.

As of end-July, the fiscal gap widened by 22.04% to PHP 784.4 billion. This was on track to hit the revised PHP 1.56-trillion full-year deficit ceiling, the BTr said.

Seven-month period

In the seven-month period of 2025, the NG debt service bill stood at PHP 876.16 billion, down by 35.76% from PHP 1.36 trillion in the same period last year.

The seven-month tally was 42.65% of the PHP 2.05-trillion debt service program this year.

Amortization payments slumped by 60.86% to PHP 355.12 billion in the January-to-July period from PHP 907.3 billion. This was 29.44% of the PHP 1.21-trillion full-year amortization program.

Principal payments on domestic debt plunged by 77.48% to PHP 170.06 billion, while external payments increased by 23.25% to PHP 184.49 billion.

On the other hand, interest payments on external debt went up by 14.1% to PHP 521.04 billion in the January-to-July period from PHP 456.66 billion a year ago. This was 61.44% of the PHP 848.03-billion programmed interest payments for 2025.

Interest payments on domestic debt stood at PHP 382.74 billion, up by 18.36% from PHP 323.36 billion in 2024.

This was composed of PHP 267.29 billion in fixed-rate Treasury bonds, PHP 82.84 billion in retail Treasury bonds, and PHP 25.74 billion in T-bills.

On the other hand, external debt inched up by 3.75% to PHP 138.3 billion as of end-July from PHP 133.3 billion a year ago.

Mr. Ricafort said the government is still on track to meet its PHP 2.05-trillion debt service program, with around PHP 800 billion in maturing securities due in August and September.

“Wider budget deficits could also increase short-term NG borrowings and debt servicing for the rest of the year. However, the preference remains to use long-term borrowings to finance the budget deficit and to undertake new borrowings to hedge and manage maturing debts,” Mr. Ricafort said. — Aubrey Rose A. Inosante

New law allows foreign investors to lease land in the Philippines for up to 99 years

New law allows foreign investors to lease land in the Philippines for up to 99 years

President Ferdinand R. Marcos, Jr. signed into law a measure that allows foreigners to lease land in the Philippines for up to 99 years.

Republic Act (RA) No. 12252 amends RA No. 7652 or the Investors’ Lease Act by further liberalizing the lease of private lands by foreign investors.

“It is the policy of the State to ensure the reliability of investors’ lease contracts to provide a stable environment for foreign investments,” the law read.

The law extends the term of foreign investors’ land leases to 99 years from the current 75, putting the country in line with policies of Singapore, Malaysia, and Indonesia.

Under the law, the President, upon the recommendation of the Fiscal Incentives Review Board (FIRB) or other agencies, can impose a shorter lease period for foreign investors in sectors considered as “critical infrastructure” in the interest of national security.

The law allows long-term land lease for “the establishment of industrial estates, factories, assembly or processing plants, agro-industrial enterprises, land development for industrial or commercial use, tourism, agriculture, agro-forestry, ecological conservation and other similar priority productive endeavors.”

In the case of tourism projects, the 99-year lease is limited to projects with an investment of not less than USD 5 million, 70% of which will be invested in the project within three years.

Under the law, foreign investors that violate the lease contracts face a fine of between PHP 1 million to PHP 10 million or imprisonment of up to six years.

The lease contract can be terminated if the foreign investor fails to start the investment project within three years of the signing.

This measure was a priority by Legislative-Executive Development Advisory Council for passage before the 19th Congress adjourned.

Mr. Marcos signed the law on Sept. 3, but a copy of the law was uploaded on the Official Gazette website on Sept. 4.

The law takes effect 15 days after it has been published in the Official Gazette or a newspaper of general circulation. – CRAG and EAAE

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