MODEL PORTFOLIO
THE GIST
NEWS AND FEATURES
Global Philippines Fine Living
INSIGHTS
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
WEBINARS
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
DOWNLOADS
Frick collection with palm trees 
Economic Updates
Policy Rate Updates: Closer to BSP’s Goldilocks moment
DOWNLOAD
economy-ss-9
Economic Updates
Inflation Update: Speeds up but remains below target
DOWNLOAD
A man and a woman in office attire hold pens as they talk about some charts.
Economic Updates
Monthly Economic Update: Fed back on track   
DOWNLOAD
View all Reports
Metrobank.com.ph How To Sign Up
Follow us on our platforms.

How may we help you?

TOP SEARCHES
  • Where to put my investments
  • Reports about the pandemic and economy
  • Metrobank
  • Webinars
  • Economy
TRENDING ARTICLES
  • Investing for Beginners: Following your PATH
  • On government debt thresholds: How much is too much?
  • Philippines Stock Market Outlook for 2022
  • Deficit spending remains unabated

Login

Access Exclusive Content
Login to Wealth Manager
Visit us at metrobank.com.ph How To Sign Up
Access Exclusive Content Login to Wealth Manager
Search
MODEL PORTFOLIO THE GIST
NEWS AND FEATURES
Global Philippines Fine Living
INSIGHTS
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
WEBINARS
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
DOWNLOADS
Frick collection with palm trees 
Economic Updates
Policy Rate Updates: Closer to BSP’s Goldilocks moment
October 9, 2025 DOWNLOAD
economy-ss-9
Economic Updates
Inflation Update: Speeds up but remains below target
October 7, 2025 DOWNLOAD
A man and a woman in office attire hold pens as they talk about some charts.
Economic Updates
Monthly Economic Update: Fed back on track   
October 3, 2025 DOWNLOAD
View all Reports

Archives: Business World Article

Condo glut weighs on home prices

Condo glut weighs on home prices

Sluggish demand and oversupply of condominium units in the market have dampened the growth in prices of residential properties in the National Capital Region (NCR), analysts said, which could persist until yearend as the glut remains.

Joey Roi H. Bondoc, director and head of research at Colliers Philippines, said weak demand for condominium units in the middle-income segment led to the slow growth of housing prices in NCR.

“I think we will attribute that to (the) slower take-up of unsold condominium units in the secondary, ready-for-occupancy (RFO) market,” he told BusinessWorld in a phone interview.

He said about 31,000 condominium units remain unsold in the RFO market, with nearly 60% under the mid-income segment or those worth P3.6 million to P12 million per unit.

Home prices in Metro Manila posted a slower growth of 2.4% in the second quarter from 13.9% in the January-March period and 9.3% in the same quarter last year, the Bangko Sentral ng Pilipinas’ (BSP) Residential Property Price Index (RPPI) showed.

Quarter on quarter, NCR housing prices contracted by 3.6%.

Condominium unit prices also dipped by 0.2%, a reversal from the 11.5% increase a year prior and the 10.6% growth last quarter.

Roy Amado L. Golez, Jr., director for research and consultancy at Leechiu Property Consultants, said buyers’ sentiment and preferences also affected the growth of condominium prices during the period.

“The slowdown in year-on-year growth in condominium prices in NCR from Q1 2025 (13.9%) to Q2 2025 (2.4%) can be attributed to the oversupply, cautious buyer sentiment, and possible shift in buyer preferences,” he told BusinessWorld in an e-mail. “Buyers are responding with a more critical examination of their needs before making any property purchases. There are less instances of speculative purchases in the market today for NCR.”

Mr. Golez said secondary or pre-owned units sold at lower prices are also cornering some of the demand for housing.

“Note that the RPPI doesn’t cover only primary units from developers — secondary units are competing for demand, and motivated sellers sell at a discount so they can liquidate their properties,” he said.

“With the low-yield environment, some owners are finding it more attractive to flip their condominium investments and divert to alternative instruments. This can also include sales of condominium units at discounted prices that developers are offering to move their unsold inventory.”

He added that developers’ project launches in Metro Manila have slowed as they still have existing inventory.

Claro dG. Cordero, Jr., director for Research, Consulting & Advisory Services at Cushman and Wakefield, said the past quarters’ strong performances could have amplified the price growth slowdown, adding that the 13.9% growth in the first quarter was “somewhat difficult to match.”

“That doesn’t mean though that the decline was very sharp,” he added.

Mr. Cordero also linked the oversupply of condominium units to the ban on Philippine offshore gaming operators (POGOs), whose workers previously resided in such properties.

“(A) lot of the excess inventory is due to the fact that the units were vacated by POGOs… So, since the POGOs left late last year, a lot of them were brought back to the market,” he said.

Meanwhile, expensive financing and high mortgage rates are also affecting demand for condominium units in the rental market, Mr. Bondoc said.

He said the mortgage rate for a five-year term ranges from 7.7% to 7.8% and would cost more if longer than five years.

“So, the rental market is experiencing sluggishness at this point… meaning if I buy a condominium unit (and) once it’s turned over, will I be able to rent it out to a BPO employee or a foreign employee?” Mr. Bondoc said.

“Unfortunately, the rental market is slowing in Metro Manila right now because again (there are) a lot of unsold condominium units (and) owners are imposing lower rental rates,” he added.

BSP data showed that the median price for all housing types in the Philippines stood at PHP 3.4 million in the second quarter. Condominium units had a median price of PHP 3.8 million, while houses cost around PHP 3.1 million.

Houses in the NCR were the most expensive at a median price of PHP 7.01 million, while houses in other areas in the Philippines were the cheapest at about PHP 2.7 million.

Slow take-up to persist

Mr. Golez said condominium sales have improved as of the third quarter amid lower interest rates.

“Now… we’re seeing renewed buyer activity in the (Metro Manila) condominium market,” he said. “Lower interest rates may be fueling this rise in demand, as well as discounts and promos from developers.”

The central bank’s policy rate currently stands at 4.75%, the lowest in over three years. It has lowered benchmark interest rates by 175 basis points since kicking off its easing cycle in August 2024, and BSP Governor Eli M. Remolona, Jr. has left the door open to more  cuts in the coming months to help boost domestic demand due to a softer economic outlook as a widening corruption scandal involving government infrastructure projects has affected business sentiment.

However, condominium price growth, particularly for secondary units, in NCR will likely remain flat but could recover in the medium term once supply levels become more manageable and rental yields improve, Mr. Golez said.

“The pace of recovery will depend on how quickly developers clear unsold stock, whether buyer sentiment improves, and when rental demand picks up. Until then, we can expect subdued price growth.”

Mr. Bondoc said tepid demand for condominium units in Metro Manila will likely persist until yearend as the number of unsold units remains significant. However, developers’ RFO promos and discounts could help attract buyers.

“We saw that there was an improvement in take-up of condominiums in (the) second quarter this year because of promos and discounts offered by developers. But let’s see if that will be sustained. But in terms of rental prospects and appetite for condominium units for rent, we’re likely to see slower demand for the remainder of 2025,” he added.

He said the “strong” demand seen for residential properties outside Metro Manila is making up for the slowdown seen in the capital.

“I think what’s offsetting that is still a strong take-up outside of Metro Manila. So, that has been offsetting the lukewarm appetite for condominium units in the capital region at this point. That’s still a positive for the market that we’re seeing.”

“Buyer interest is increasing for housing options outside NCR, especially for landed housing. Developers are responding in kind by continuing to develop townships outside NCR, capitalizing on infrastructure improvements and lifestyle appeal,” Mr. Golez added.

In areas outside NCR, home prices rose by 11.5% in the second quarter, faster than the 3% growth logged in the first quarter and 7.2% the previous year, BSP data showed.

Mr. Cordero said they see home prices rising in the near term, particularly in the pinch areas in emerging regions such as Cebu.

“That’s driven by sustained demand for larger living spaces and more horizontal developments as well as regional migration and infrastructural enhancements.” — Katherine K. Chan

ECCP outlines policy recommendations to help boost investments

ECCP outlines policy recommendations to help boost investments

The European Chamber of Commerce of the Philippines (ECCP) has identified its advocacy recommendations across 12 key sectors that will help create a business environment that fosters investment, innovation, and sustainable growth.

“This year’s Advocacy Papers capture the perspectives of our committees, reflecting the expertise and dedication of ECCP members across a wide range of industries,” ECCP President Paulo Duarte said in a statement.

He said recent reforms in the country, including the passage of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, have been encouraging.

“Further progress in improving the ease of doing business and ensuring a level playing field for both local and foreign enterprises will be vital to unlocking the Philippines’ full potential as an investment destination,” he added.

This year’s Advocacy Papers span 12 sectors, which are agriculture, automotive, aviation, customs and logistics, environment and water, food and beverage, healthcare, human capital and education, infrastructure, renewable energy, tax and financial services, and tourism.

Under agriculture, the ECCP recommended the passage of the Animal Industry Development and Competitiveness Act to address the challenges in productivity, resilience, and market access of the Philippines’ animal sector value chains.

“The proposed law creates a unified institutional and fiscal framework, including the design of a multi-year competitiveness fund and clearer mandates for implementing agencies,” the group said.

This framework is expected to “enable sustained investments in feed and genetics, slaughter and cold-chain infrastructure, and disease-control capacity rather than the ad hoc, year-to-year programming typical under the current architecture.”

The group also recommended scaling value-chain investments around prioritized commodity roadmaps, accelerating climate-resilient cold-chain and aggregation infrastructure dispersal, institutionalizing data-driven agricultural insurance, and dedicating funding for biosecurity.

It also called for the harmonization of veterinary product regulation, integration of market access and sanitary and phytosanitary compliance for public agricultural investments, expanded financing for smallholder farmers, and the accelerated enactment of the National Land Use Act.

For the automotive sector, the ECCP asked for the elimination of import duties for European automotive brands, streamlined border procedures and certification, predictability of incentives and regulatory frameworks, and development of a support program for electric vehicle (EV) adoption.

It also called for the inclusion of road safety education into the basic education curriculum, requiring regular calibration and testing for critical electronics in EVs, and safety laws related to child car seats, dash cams, and dark car tints.

For aviation, the chamber sought more investments in the modernization of transport infrastructure and aviation safety oversight, improvements in the frameworks regulating the air transport sector, and the ratification of the Cape Town Agreement.

The groups asked for an incentive framework for competitive and sustainable aviation, strengthening human capital for the aviation sector, and integration of sustainability in the Philippine Aviation Strategy.

In logistics, the group asked for the promotion of ease of doing business, including operationalization of the National Single Window, enforcement and update of Citizen’s Charters, and establishment of guidelines to regulate charges imposed by international shipping lines.

The ECCP also recommended the amendments to the Philippine Ports Authority Charter and the passage of the Blue Economy Act and the Maritime Trade Competitiveness Act.

In the area of environment, the group asked for the implementation of the Extended Producers’ Responsibility (EPR) Scheme, incentive-based measures under EPR law, and the integration of environmental education in the curriculum.

Under food and beverage, the group is seeking the proper implementation of front-of-package labeling, implementation of policies regarding marketing to kids, education efforts that recognize benefits of prepackaged food, review of food taxes, and promotion of ease of doing business.

In healthcare, the group is asking for the expansion of Philippine Health Insurance Corp.’s coverage and the proper implementation of the New Government Procurement Act.

Meanwhile, ECCP is seeking enhanced curriculum for the basic education system, enhanced training programs for teachers, accelerated facility provisioning, strengthened vocational programs, enhanced support programs for private schools, and improved nutrition programs.

The group is also recommending revisions to the apprenticeship law, eased restrictions on the employment of foreign nationals, passage of the Enterprise Productivity Act, and reconsideration of across-the-board wage mandates.

In the area of infrastructure, the group is pushing for funds allocation for green infrastructure and faster blended cement adoption, implementation of the Mandanas-Garcia ruling, ensuring sanctity of public-private partnership contracts, and a level playing field for local and foreign-owned contractors.

The group is also seeking effective implementation of the Konektadong Pinoy Act, accelerated digital infrastructure development, development of a future-ready workforce, improvements in ease of doing business and cyber-resilience, and integration of regional development into the national information and communications technology strategy.

It also asked for improved ease of doing business and green financing mechanisms, effective implementation of the Energy Efficiency and Conservation Act, and the establishment of a policy framework for waste-to-energy technologies.

The group is also asking the government to digitalize and streamline tax processes, accelerate e-invoicing, resolve ambiguity in cross-border taxation, standardize tax assessment and valuations, establish a carbon credits facility, and strengthen tax awareness.

For tourism, ECCP recommended improvements to international and domestic connectivity, promotion of domestic and international tourism, restructuring of the Civil Aviation Authority of the Philippines, and integration of sustainability in a long-term tourism strategy.

The group also expressed support in the establishment of an independent agency focused on the development of Philippine airports through the Philippine Airports Authority and the creation of a Philippine Transportation Safety Board. — Justine Irish D. Tabile

Philippine banks’ assets expand to PHP 27.7T as of August

Philippine banks’ assets expand to PHP 27.7T as of August

The Philippine banking sector’s total assets grew by 6.7% year on year as of end-August amid continued growth in loans and deposits.

Banks’ combined assets rose to PHP 27.729 trillion as of August from PHP 25.988 trillion a year prior, data from the Bangko Sentral ng Pilipinas (BSP) showed.

Meanwhile, month on month, this was 0.04% lower than the PHP 27.742 trillion recorded at end-July.

Banks’ assets are mainly supported by deposits, loans, and investments. These include cash and due from banks as well as interbank loans receivable (IBL) and reverse repurchase (RRP) net of allowances for credit losses.

Universal and commercial banks still held the bulk of the Philippine banking system’s assets with PHP 25.9 trillion as of August. Thrift banks followed with PHP 1.3 trillion, rural and cooperative banks held PHP 385.45 billion, while digital banks had PHP 141.77 billion in assets. 

Broken down, the banking sector’s total net loan portfolio, inclusive of IBL and RRP, expanded by 9.9% year on year to PHP 15.189 trillion at end-August from PHP 13.816 trillion a year ago. Month on month, it slipped by 0.5% from PHP 15.259 trillion.

Banks’ net investments, or financial assets and equity investments in subsidiaries, stood at PHP 8.167 trillion in the period, rising by 10.3% from PHP 7.407 trillion a year prior but down by 0.9% from PHP 8.242 trillion at end-July.

Meanwhile, net real and other properties acquired jumped by 17.9% to PHP 130.938 billion from PHP 111.029 billion in the same period last year. This was also up 0.9% from PHP 129.735 billion a month prior.

Banks’ other assets likewise rose by 11.2% to PHP 2.23 trillion as of August from PHP 2.005 trillion a year prior. Month on month, it climbed by 1.9% from PHP 2.187 trillion.

However, cash and due from banks slumped by 24% year on year to PHP 2.012 trillion from PHP 2.648 trillion. Meanwhile, this was up by 4.6% from PHP 1.923 trillion a month prior.

BSP data also showed that the total liabilities of the banking system stood at PHP 24.169 trillion as of August, rising by 6.3% from PHP 22.73 trillion in the comparable year-ago period but down 0.2% from the PHP 24.22 trillion seen at end- July.

This came as deposit liabilities climbed by 6.9% year on year to PHP 20.454 trillion from PHP 19.142 trillion.

Broken down, peso-denominated deposits stood at P1HP 6.811 trillion, while foreign currency deposits were at PHP 3.643 trillion.

Philippine banks’ assets continued to grow amid the BSP’s easing cycle and cuts in their reserve requirement ratios (RRR), as these helped boost demand for credit and increase their loanable funds, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“Faster loan growth has been the largest contributor to the continued growth in banks’ total assets,” he said. “Continued growth in bank deposits also allowed banks to increase loans and other investments, thereby leading to the continued growth in banks’ total assets.”

In August, bank lending expanded by 11.2% year on year to P13.62 trillion, the slowest growth seen in nine months. The Monetary Board this month trimmed benchmark interest rates by 25 basis points (bps) for a fourth consecutive meeting, bringing the policy rate to an over three-year low of 4.75%.

It has now slashed borrowing costs by a cumulative 175 bps since it began its rate cut cycle in August 2024. BSP Governor Eli M. Remolona, Jr. has said that more cuts are possible as they want to support the economy amid weaker growth prospects.

Meanwhile, the BSP in March cut the RRR of universal and commercial banks and nonbank financial institutions with quasi-banking functions by 200 bps to 5%.

The ratio for digital banks was also lowered by 150 bps to 2.5%, while that for thrift lenders was cut by 100 bps to 0%. Rural and cooperative banks’ RRR has also been at zero since October 2024.

“Continued growth in banks’ net income also allows banks to increase their capital, lending, investments, and overall assets, as banks are among the most profitable businesses in the country,” Mr. Ricafort added.

Banks’ combined net income grew by 4.14% to PHP 198.14 billion in the first half as both net interest and non-interest earnings increased year on year, BSP data showed. Universal and commercial banks’ combined net earnings stood at PHP 184.45 billion in the first semester, while the thrift bank group booked a PHP 10.73-billion net profit, and the rural and cooperative bank sector posted net income of PHP 5.34 billion. Lastly, digital banks recorded a combined net loss of PHP 2.38 billion.

“For the coming months, continued growth in the local economy… as well as possible future Federal Reserve and BSP rate cuts would continue to sustain relatively faster growth in banks’ total resources and assets, as supported by the sustained growth in loans, deposits, earnings, and investments,” Mr. Ricafort said.

The Fed last month reduced its target rate by 25 bps points to bring it to the 4%-4.25% range. Fed Chair Jerome H. Powell last week hinted at more cuts as they seek to balance the US job market’s weakness with above-target inflation. — Katherine K. Chan

Growth goal still ‘attainable’ — DBM

Growth goal still ‘attainable’ — DBM

The Philippine economy can still grow within the 5.5-6.5% target this year as spending is expected to “normalize” in the fourth quarter, Department of Budget and Management (DBM)Secretary Amenah F. Pangandaman said.

Ms. Pangandaman, who also chairs the Development Budget Coordination Committee (DBCC), said the gross domestic product (GDP) growth target of 5.5-6.5% for this year “remains attainable.”

“Spending is expected to catch up and normalize toward the latter part of the year,” she told BusinessWorld in a Viber message on Oct. 15.

“Momentary slowdown in public infrastructure spending is expected as agencies do due diligence, especially DPWH (Department of Public Works and Highways) as it reviews and evaluates its roster of projects,” she said.

Finance Secretary Ralph G. Recto earlier this week said economic growth likely cooled in the third quarter, adding that the slowdown may continue until early 2026 as heightened scrutiny over anomalous projects dampens government expenditure.

President Ferdinand R. Marcos, Jr. had flagged anomalous flood control projects during his State of the Nation Address in late July. This sparked several investigations into alleged corruption involving lawmakers, government officials, and private contractors.

Earlier, Economy Secretary Arsenio M. Balisacan said the DBCC will wait for third-quarter data to be released on Nov. 7 before revising growth targets.

However, he noted that achieving the full-year growth goal has “become harder” due to a likely slowdown in government spending.

In the first half, GDP growth averaged 5.4%, slower than 6.2% a year ago.

Ms. Pangandaman said the economic team remains “vigilant and proactive” in managing fiscal risks while staying aligned with the medium-term fiscal framework.

In June, the DBCC tempered its growth forecast to 5.5-6.5% for 2025 and 6-7% for 2026, mainly due to “heightened global uncertainties” arising from the Middle East conflict and US tariffs.

Ms. Pangandaman said the country’s growth momentum will be supported by key factors, including sound macroeconomic fundamentals, easing inflation, and a lower interest rate environment.

She also cited favorable credit and financial markets, stronger private sector momentum, and more efficient public spending as driving economic growth.

In a separate statement on Thursday, Mr. Recto said the economy is expected to post stronger economic growth ahead, citing improved governance and institutional reforms following the flood control mess.

“Growth is being supported by low inflation, easing policy rates, strong consumer spending, and a vibrant labor market,” he said.

Headline inflation averaged 1.7% in the first nine months of the year, matching the forecast of the Bangko Sentral ng Pilipinas.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said the DBCC may need to revise its macroeconomic assumptions to reflect more realistic conditions amid persistent global headwinds, fragile consumer confidence, and fiscal constraints.

The economic managers should also prioritize targeted stimulus and institutional reforms to support resilience, he said.

“It will be challenging but not impossible, despite the third-quarter slowdown,” Mr. Rivera said in a Viber message on Thursday.

“Growth will depend on whether domestic consumption and investment rebound during the holiday season, if government spending accelerates, and if inflation remains within target,” he added.

Ser Percival K. Peña-Reyes, director of the Ateneo Center for Economic Research and Development, said the DBCC should revise its growth targets in light of the corruption scandal over flood control projects.

“Corruption scandals have had a chilling effect on investor sentiment,” he said in a Viber message on Thursday.

Mr. Peña-Reyes said the economy likely expanded by 5.6% in the third quarter, accelerating from 5.2% growth in the same period a year earlier.

For the full-year, growth will likely settle at 5.5%, matching the lower end of the government’s target range but slower than the revised 5.7% in 2024.

Foundation for Economic Freedom President Calixto V. Chikiamco said the Philippine economy’s performance is likely to “disappoint” this year given the headwinds facing the Philippines.

“The picture could be worse next year when the Trump tariffs start to bite and global slowdown occurs,” he said in a Viber message.

Recto rejects VAT reduction

In addition, Mr. Recto warned against some lawmakers’ proposals to lower the value-added tax (VAT) rate to 10%, saying this move could result in “massive revenue losses” and force the government to borrow to fund basic operations.

“The entire VAT collection for 2025 of PHP 1.39 trillion can only fund nine months’ worth of payroll, premium, and pension of active and retired government workers,” said Mr. Recto, who authored the measure that hike the VAT rate in 2005.

Several lawmakers have filed bills seeking to either scrap or cut the 12% VAT rate. VAT collections account for about a fifth of the Bureau of Internal Revenue’s total revenues.

Mr. Recto said excise tax collections, projected at PHP 576 billion this year, would not be enough to cover the PHP 965-billion budget for basic, tertiary, and technical-vocational education programs. — Aubrey Rose A. Inosante, Reporter

Philippines faces skill gap as green economy push gains pace

Philippines faces skill gap as green economy push gains pace

Businesses and policymakers face a widening gap between the demand for skilled labor and the workforce’s readiness to fill green jobs, as the Philippines accelerates its transition to a green economy.

Industry leaders and government officials warn that unless the country scales up training programs, the promise of economic growth from renewable energy, electric vehicles and sustainable construction could be undermined by the lack of qualified workers.

“Are we ready for these changes?” Francis A. Macatulad, program director at the Asia Society for Social Improvement and Sustainable Transformation (ASSIST), a nonprofit that promotes capacity-building and sustainable practices, told BusinessWorld in a virtual interview. “Unfortunately, we are not. We don’t have the technicians.”

His warning underscores a structural challenge for Southeast Asia’s second-most-populous nation.

As climate change reshapes economies worldwide, the Philippines is under pressure to retrofit aging infrastructure, decarbonize energy systems and adopt greener modes of transportation. But the country is still scrambling to align its workforce with those demands.

The World Economic Forum projects that green and energy-transition roles such as renewable energy engineers and electric vehicle specialists will be among the fastest-growing job categories in the coming years.

The International Labour Organization (ILO) estimates that the shift to a green economy could create 24 million jobs globally by 2030.

The Asia-Pacific region is particularly exposed, with 43% of its workforce considered vulnerable to climate-related shocks and the disruptions from decarbonization, according to the ILO. For the Philippines, where millions of workers remain in carbon-intensive or informal industries, the transition risks leaving many behind without targeted support.

Labor Undersecretary Carmela I. Torres said the government is working to balance the creation of green jobs with inevitable losses in traditional industries such as coal and fossil fuel-based transportation.

“The transition to a green economy should be just and inclusive, ensuring that workers in traditional industries are not left behind,” she said in an e-mailed reply to questions. “This aims to shift towards environmentally friendly practices while ensuring the creation of decent work opportunities and addressing social inequalities.”

Still, she acknowledged persistent challenges: gaps in training programs, limited funding, and the lack of awareness among workers and employers about opportunities in the green sector.

Some of the country’s biggest companies are trying to bridge the gap by embedding sustainability across their organizations.

Ayala Corp., one of the Philippines’ oldest business groups, ensures its sustainability agenda extends beyond dedicated teams.

“Our corporate strategy, business development, investor relations, and treasury teams, among others, are updated on the latest and most relevant thinking in sustainability to ensure that it is embedded into our long-term planning and investments,” Francisco R. Milan, Ayala’s chief human resources officer, said in an e-mailed reply to questions.

Ayala Land, Inc., the group’s property arm, hosts quarterly forums on topics such as decarbonization, regenerative design and water resource management. Globe Telecom, Inc., meanwhile, launched an online Sustainability Academy in 2021 to help its 8,000 employees adopt sustainable practices at home and at work.

“Across the group, sustainability and human resource teams are working closely to identify ways to more widely embed the value of sustainability among all employees,” Mr. Milan said.

The Aboitiz Group has also made sustainability central to its real estate and infrastructure ventures. Aboitiz InfraCapital, Inc.’s economic estates, including Lima Estate in Batangas, have earned a five-star Building for Ecologically Responsive Design Excellence (BERDE) district certification. It features a sustainability hub with a waste-to-eco brick facility, rainwater harvesting and compost-to-fertilizer systems.

“It’s about shifting how everyone in the organization thinks about placemaking and future-proofing for the new economy,” Monica L. Trajano, vice-president for business development at Aboitiz unit LIMA Land, Inc., told BusinessWorld in an interview.

“We must be able to integrate agility and innovation as we emphasize sustainability and best practices,” she added.

Working with urban planning consultants such as Singapore-based Surbana Jurong Pte Ltd., Aboitiz has identified specific workforce gaps in renewable energy and sustainable construction. “There is a skill gap in practical areas like installation, maintenance, repair and even the basic knowledge in sustainable construction,” Ms. Trajano said.

‘Mindset shift’

While infrastructure upgrades are critical, advocates stress that behavior change is just as important.

“Designing green is the easiest part,” Christopher C. de la Cruz, chief executive officer at the Philippine Green Building Council, said in an interview. “Staying green is the biggest problem.”

He noted that even the most energy-efficient systems are wasted if occupants use them improperly. “It’s a mindset shift.”

The council administers the BERDE green building rating system and partners with organizations such as the Philippine Business for Education to develop training programs. It also works with universities like the University of San Carlos in Cebu to update curricula so graduates are equipped with green skills from the outset.

Green jobs are for everyone — including janitors, messengers, and plumbers, Mr. De la Cruz said. “If you’re able to transition your work today into a cleaner kind of work that contributes [to mitigating] the climate crisis, then it’s a green job.”

Nonprofit groups are stepping in to address the training deficit. ASSIST, for example, works with technical-vocational associations in Mindanao and Metro Manila to give instructors updated training materials.

It has also established an advisory committee with the Technical Education and Skills Development Authority (TESDA) and chambers of commerce to identify skill gaps.

“We are upskilling the current tech-voc students, or in some cases reskilling technicians to be able to work with the new technologies,” Mr. Macatulad said.

The Philippines already has a legislative framework in place. The Green Jobs Act of 2016 seeks to identify skill needs, train and certify workers and provide financial support including tax deductions for green-skill programs.

The Labor department and TESDA have also issued a joint memo to strengthen career guidance and training alignment with industry needs.

“Efforts such as those by TESDA are crucial for developing a workforce capable of meeting these demands,” Ms. Torres said. “Both public and private sector investments are needed to support the development of a robust green job training ecosystem.”

For the private sector, investment in education is vital to long-term competitiveness.

“We recognize that no single institution or the private sector acting alone can produce the necessary talent at scale,” Mr. Milan said. Government investment in education is critical so Philippine schools can produce a workforce that supports the drive of industries for sustainability, he added.

Aboitiz’s Ms. Trajano called the skill gap both a challenge and an opportunity.

“Our biggest opportunity as a country is our labor force, and we really must focus on that, with the public and private sectors working together,” she said. “The skill gap is also our biggest opportunity in terms of influencing the quality of our educational institutions.”

As the Philippines braces for the impacts of climate change — rising sea levels, stronger typhoons, and disrupted agricultural cycles — building a workforce ready for the green economy has become more than an economic necessity.

The Philippines is in a race against time. “There are a lot of projects that will be coming on stream very soon, and they need technicians,” Mr. Macatulad said.  — Patricia B. Mirasol, Multimedia Producer

Philippines ranks near bottom of Global Pension Index

Philippines ranks near bottom of Global Pension Index

The Philippines’ pension system remained the third worst in the world, according to the 2025 edition of Mercer CFA Institute’s Global Pension Index.

The Philippines’ score, which is graded based on adequacy, sustainability, and integrity, improved to 47.1 in 2025 from 45.8 in 2024, primarily due to “clarification of regulations,” the report said.

However, the score was way below the 64.5 global average, and the third-lowest score among 52 retirement income systems in the index. Last year, the Philippines’ pension system was also the third worst out of 48 systems.

Mercer CFA Institute: Philippines’ pension system still third worst in the world

In the report, the pension systems in the Philippines, Turkey, Argentina and India, were given a “D” grade. This means the pension system has some “desirable” features but also has “major weaknesses” that should be addressed.

“Without these improvements, its efficacy and sustainability are in doubt,” the report said.

The Netherlands had the best pension system with a score of 85.4. Aside from the Netherlands, the pension systems in Iceland, Denmark, Singapore and Israel were also given an “A” grade, which meant they had robust and sustainable systems that deliver good benefits with a high level of integrity.

The Global Pension Index reviews an economy’s retirement income systems based on three weighted subindices: adequacy, sustainability, and integrity.

The Philippines’ adequacy score went down to 40.6 in 2025 from 41.7 in 2024. This was below the global average of 66.1 for adequacy.

Its sustainability score improved to 64.4 from 63.4, which was higher than the global average of 55.3.

For integrity, the Philippines’ score inched up to 33.2 from 27.7. However, this was significantly lower than the global average score of 74.7.

The Philippines was the only economy in the integrity sub-index that had an “E” grade, which indicates “a poor system that may be in the early stages of development or nonexistent.”

“The Philippines’ retirement income system comprises a small basic pension and an earnings-related social security pension,” the report said.

“Members can receive a lifetime pension if they have contributed for a minimum of 180 months for government and 120 months for nongovernment members. Both schemes provide calibrated benefits if the minimum number of contributions is not satisfied.”

The Mercer CFA Institute report said the Philippine pension systems could be improved if the minimum level of support for the poorest elderly is increased and the benefits are aligned with the country’s cost of living.

It also said the Philippines’ requirements for vesting in private sector plans should be improved.

The report said the local pension system lacks non-cashout options for retirement plan proceeds, so they are preserved for retirement purposes.

It also cited the need to improve governance requirements for the private pension system.

In the Philippines, there are two main pension funds — the Social Security System (SSS) for private workers and the Government Service Insurance System  for government workers.

Starting Jan. 1 this year, the SSS increased the contribution rate to 15%, up from 14%. Under Republic Act No. 11199 or the Social Security Act of 2018, the SSS implemented incremental contribution rate hikes of one percentage point every two years starting in 2019 from the original contribution rate of 11%.

All SSS pensioners as of Aug. 31, 2025 began receiving higher pensions starting September this year. Retirement and disability pensions will increase by 10% annually every September until 2027, while death or survivor pensions will rise by 5% each year. — A.M.C.Sy

Peso weakens on concerns over US-China trade spat

Peso weakens on concerns over US-China trade spat

The peso dropped versus the dollar on Thursday due to concerns over renewed trade tensions between the United States and China.

The local unit weakened by seven centavos to close at PHP 58.125 against the greenback from its PHP 58.055 finish on Wednesday, Bankers Association of the Philippines data showed.

The peso opened Thursday’s session stronger at PHP 57.999 versus the dollar. Its intraday best was at PHP 57.98, while its worst showing was at PHP 58.16 against the greenback.

Dollars traded went down to USD 1.69 billion on Thursday from USD 1.73 billion on Wednesday.

The peso declined due to market concerns over the trade spat between the world’s two largest economies, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The US dollar headed for a third straight daily loss against the euro while edging up versus the yen on Thursday, as concerns over US-China tensions and dovish remarks from Federal Reserve officials continued to weigh on sentiment, Reuters reported.

The dollar index, which measures the greenback against six other currencies, was down 0.05% at 98.63, and was on track for a weekly decline of around 0.3%.

Investors were scrutinizing China’s latest expansion of rare earth export controls, a move sharply criticized by senior US officials on Wednesday, who warned that it could disrupt global supply chains.

Amid the tit-for-tat action, US President Donald J. Trump still expects to meet Chinese President Xi Jinping in South Korea this month, US Treasury Secretary Scott Bessent said.

The peso fell on worries that the ongoing corruption scandal could affect the Philippines’ credit rating, a trader said in an e-mail.

Finance Secretary Ralph G. Recto earlier said that S&P Global Ratings was set to upgrade the country’s credit rating this year if not for the widening scandal involving state infrastructure projects.

The controversy, which involves “ghost” projects and fund misuse in government flood control programs, has triggered investigations by Congress, the Commission on Audit, the Ombudsman, and the Independent Commission for Infrastructure.

For Friday, the trader said the peso could depreciate further as strong earnings reports from US major banks could boost the greenback.

The trader sees the peso moving between PHP 58 and PHP 58.25 per dollar on Friday, while Mr. Ricafort said it could range from PHP 58.05 to PHP 58.25. — Aaron Michael C. Sy with Reuters

PSE index slips as market looks for new catalysts

PSE index slips as market looks for new catalysts

The main index slipped on Thursday to end its three-day climb, with the market moving sideways in the absence of fresh leads.

The benchmark Philippine Stock Exchange index (PSEi) edged down by 0.43 point to close at 6,093.67, while the broader all shares index inched up by 0.03% or 1.32 points to 3,672.20.

“The market ended flat on the lack of new catalysts,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message.

“The local market inched down amid last-minute profit taking,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message. “Investors booked gains following a three-day rally, which got extended in the middle of today’s trading.”

The PSEi opened Thursday’s trading session at 6,104.47, rising from Wednesday’s close of 6,094.10. It climbed to a high of 6,130.17 but gave up its gains due to profit taking, finishing the session at its intraday low.

He added that trading activity remained weak, “reflecting weak market confidence amid lingering concerns, including the Philippines’ corruption issues and their impact on local economic growth, and renewed US-China trade tensions.”

Philippine economic growth may slow until early 2026 as the controversy surrounding anomalous infrastructure projects dampens government spending, Finance Secretary Ralph G. Recto said on Tuesday. Despite this, he said he remained confident that gross domestic product growth would still meet the lower end of the government’s 5.5% to 6.5% goal this year.

Value turnover increased to PHP 9.82 billion on Thursday with 3.12 billion shares traded from Wednesday’s PHP 7.89 billion with 2.58 billion shares changing hands.

“The PSEi ended flat as both buying and selling pressures showed strength throughout the session. Some investors are likely positioning themselves ahead of the earnings season, with several companies already releasing their reports,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Sectoral indices ended mixed on Thursday. Services dropped by 1.09% or 25.62 points to 2,304.66; industrials retreated by 0.73% or 66.51 points to 8,932.49; and mining and oil decreased by 0.66% or 100.91 points to 15,064.26.

Meanwhile, holding firms increased by 0.88% or 43.22 points to 4,911.37; property rose by 0.65% or 14.73 points to 2,272.33; and financials climbed by 0.39% or 8.02 points to 2,055.79.

“San Miguel Corp. led the index for the day, jumping 5.87% to PHP 60.40. Monde Nissin Corp. was at the tail end, falling 3.47% to PHP 7.24,” Mr. Tantiangco said.

Advances outnumbered decliners, 108 to 92, while 58 names closed unchanged.

Net foreign selling went down to PHP 148.75 million on Thursday from PHP 233.37 million on Wednesday. — Sheldeen Joy Talavera

Cash remittances hit USD 2.98B in Aug.

Cash remittances hit USD 2.98B in Aug.

Money sent home by overseas Filipino workers (OFW) went up by 3.2% year on year in August, as the weaker peso drove up the value of remittances, data from the Bangko Sentral ng Pilipinas (BSP) showed.

In a statement, the BSP said cash remittances coursed through banks increased by 3.2% to USD 2.977 billion in August from USD 2.885 billion in the same month last year.

Despite the annual growth, remittances declined by 6.4% month on month from the seven-month high of USD 3.179 billion in July.

Overseas Filipinos’ Cash Remittances

The August tally was the lowest in three months or since the USD 2.658-billion remittances in May.

“Cash remittances from overseas Filipinos continued to grow… This developed on account of higher inflows from both land-based and sea-based workers,” the BSP said in a statement on Wednesday.

Money sent home by land-based workers climbed by 3% year on year to USD 2.35 billion in August, accounting for the bulk of cash remittances.

Remittances from sea-based workers likewise rose by 3.8% year on year to USD 626 million in August.

“Cash remittances rose 3.2% year on year in August to USD 2.98 billion, supported by steady overseas employment and resilient inflows from key markets like the US, Singapore, and Saudi Arabia,” Union Bank of the Philippines  Chief Economist Ruben Carlo O. Asuncion said in a Viber message.

Robert Dan J. Roces, an economist at SM Investments Corp., said the 3.2% year-on-year increase in cash remittances in August indicates a “modest pickup” versus the 3% growth in July.

“This suggests that remittance flows have some resilience despite global headwinds, and reflects, in part, a lower comparative base or mild fluctuations in monthly flows,” he said in a Viber message.

Mr. Roces said the weak peso drives higher remittances in dollar terms as recipients “gain more local-currency value.”

“Evidence from BSP studies have highlighted the positive role of exchange rate depreciation as a driver of remittances,” he added.

In August, the peso averaged PHP 57.2525 versus the greenback, weakening from the PHP 56.7523-per-dollar average in July.

On the other hand, Mr. Asuncion said the month-on-month dip in remittances reflects “seasonal normalization after back-to-school spending and a less volatile peso.”

Meanwhile, personal remittances, which include both cash coursed through banks and informal channels as well as in-kind remittances, stood at USD 3.307 billion in August, rising by 3.2% from USD 3.204 billion a year earlier.

Workers with contracts of one year and above sent home the bulk of personal remittances at USD 2.54 billion, up 3% year on year.

Personal remittances from workers with contracts of less than one year also rose by 4% year on year to USD 690 million.

Eight-month period

In the eight months to August, cash remittances from migrant Filipinos climbed by 3.1% to USD 22.909 billion from the USD 22.217 billion posted in the same period last year.

Remittances from land-based workers grew by 3.3% year on year to USD 18.32 billion as of end-August, while sea-based OFW remittances rose by 2.5% to USD 4.59 billion.

Money sent home from the United States accounted for 40.4% of the remittances in the first eight months of the year.

This was followed by Singapore (7.1%), Saudi Arabia (6.3%), Japan (4.9%) the United Kingdom (4.8%), the United Arab Emirates (4.5%), Canada (3.4%), Qatar (2.9%), Taiwan (2.8%) and South Korea (2.6%).

Meanwhile, personal remittances went up by 3.1% to USD 25.51 billion in the eight-month period from USD 24.74 billion the previous year.

“With year-to-date growth slightly ahead of target and holiday inflows ahead, remittances remain on track to meet BSP’s full-year growth forecast,” Mr. Asuncion said.

Mr. Roces said remittances typically rise in the September-to-December period, which may boost the full-year tally.

The BSP expects cash remittances to grow by 3% to USD 35.5 billion this year. — Katherine K. Chan

DoF vows to address businesses’ tax concerns

DoF vows to address businesses’ tax concerns

Finance Secretary Ralph G. Recto has ordered the formation of a multi-sectoral working group to address tax woes raised by business leaders, the Department of Finance (DoF) said.

According to a DoF statement, Mr. Recto gave the order after a dialogue with the Makati Business Club on Oct. 14, where corporate executives flagged key policy concerns and proposed solutions to improve the investment climate.

The working group will be led by the DoF and include private sector representatives, giving the business community a chance to raise any tax concerns.

“We want to support the government in its quest to make this a very good business environment and investment destination. That’s our overall aim. We’re here to support you,” Makati Business Club (MBC) Executive Director Rafael ASG Ongpin was quoted as saying in the DoF statement. “We’re here because this government has been very open and very collaborative, and we really see the value of that.”

The meeting included representatives of multinational firms such as Mondelez Philippines, Inc.; Unilever; SGV & Co.; Pepsi-Cola Products Philippines, Inc.; the American Chamber of Commerce of the Philippines; Texas Instruments, Inc.; and e-commerce platform Shopee.

One of the concerns raised by business leaders was the implementation of Revenue Memorandum Circular (RMC) No. 5-2024, which outlines taxation of cross-border services involving foreign corporations.

In February last year, 10 business groups including the Philippine Chamber of Commerce and Industry and Management Association of the Philippines had urged the Bureau of Internal Revenue (BIR) to rescind the circular, which would raise the cost of doing business in the Philippines.

They had said the circular violates existing income tax treaties entered into by the Philippines with various countries.

“These treaties generally provide that business profits of a treaty resident shall not be taxed in the Philippines if the foreign treaty resident does not have a permanent establishment in the Philippines,” the business chambers had said.

In response, Mr. Recto pledged to review existing tax circulars and explore digital tools aimed at improving transparency and efficiency in tax assessments.

BIR Commissioner Romeo D. Lumagui, Jr., who also attended the meeting, acknowledged concerns raised over the mentioned tax memorandum and backed Mr. Recto’s proposal for amendments.

In addition, the Finance chief reaffirmed the government’s push to accelerate digitalization to curb corruption and increase efficiency in the delivery of public services to business leaders.

“The government is only 20% or 25% of the economy — you’re 75%. Today, you have more than 50.1 million people working, with more than 32 million in the private sector,” Mr. Recto said.

He also called for stronger private sector engagement in the DoF’s digitalization program, particularly in the BIR, Bureau of Customs and Bureau of the Treasury.

“Whatever support you think we can provide — inputs, technology, we’d be more than happy to do that,” MBC Chairman Edgar O. Chua was quoted as saying. — Aubrey Rose A. Inosante

Posts navigation

Older posts
Newer posts

Recent Posts

  • Market Movers: Five calls on the Philippine economy in the next months 
  • Fed Preview: Of rate cuts and shutdowns
  • Positioning your bond portfolio for 2026 
  • Investment Ideas: October 21, 2025 
  • Peso GS Weekly: Range-bound but bias still toward lower yields

Recent Comments

No comments to show.

Archives

  • October 2025
  • September 2025
  • August 2025
  • July 2025
  • June 2025
  • May 2025
  • April 2025
  • March 2025
  • February 2025
  • January 2025
  • December 2024
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • March 2022
  • December 2021
  • October 2021

Categories

  • Bonds
  • BusinessWorld
  • Currencies
  • Economy
  • Equities
  • Estate Planning
  • Explainer
  • Featured Insight
  • Fine Living
  • How To
  • Investment Tips
  • Markets
  • Portfolio Picks
  • Rates & Bonds
  • Retirement
  • Reuters
  • Spotlight
  • Stocks
  • Uncategorized

You are leaving Metrobank Wealth Insights

Please be aware that the external site policies may differ from our website Terms And Conditions and Privacy Policy. The next site will be opened in a new browser window or tab.

Cancel Proceed
Get in Touch

For inquiries, please call our Metrobank Contact Center at (02) 88-700-700 (domestic toll-free 1-800-1888-5775) or send an e-mail to customercare@metrobank.com.ph

Metrobank is regulated by the Bangko Sentral ng Pilipinas
Website: https://www.bsp.gov.ph

Quick Links
The Gist Webinars Wealth Manager Explainers
Markets
Currencies Rates & Bonds Equities Economy
Wealth
Investment Tips Fine Living Retirement
Portfolio Picks
Bonds Stocks
Others
Contact Us Privacy Statement Terms of Use
© 2025 Metrobank. All rights reserved.

Access this content:

If you are an existing investor, log in first to your Metrobank Wealth Manager account. ​

If you wish to start your wealth journey with us, click the “How To Sign Up” button. ​

Login HOW TO SIGN UP