Archives: Business World Article

The Philippines is unlikely to hit even the low end of the government’s growth target this year, as bad weather and a corruption scandal weigh on economic activity, Department of Economy, Planning, and Development (DEPDev) said on Monday.

Economy Secretary Arsenio M. Balisacan conceded that this year’s 5.5-6.5% gross domestic product (GDP) growth target is out of reach.

“Honestly, that’s very unlikely now. We need to grow roughly 7% in the fourth quarter to achieve a 5.5% growth for the year. Given the situations and data that are coming out, that’s quite unlikely,” he said in a year-end press chat.

This will be the third straight year that the Philippines will miss its GDP growth target.

Mr. Balisacan said the Development Budget Coordination Committee (DBCC) is set to meet on Dec. 9 to review the macroeconomic assumptions and targets.

“Our DBCC is meeting to assess the situation, particularly given the recent developments in the third-quarter performance and what’s emerging in the fourth quarter. Those will be taken into account in setting a target for 2026,” he said.

The Marcos administration has been under pressure after a corruption scandal involving public works projects has dampened government spending and shaken investor and consumer confidence.

Third-quarter GDP grew by 4%, the slowest in over four years, bringing the nine-month average to 5%.

Last month, S&P Global Ratings cut its 2025 growth forecast to 4.8%, while the ASEAN+3 Macroeconomic Research Office trimmed its projection to 5.2%.

Mr. Balisacan said he is hoping the economy has seen the worst in the third quarter as President Ferdinand R. Marcos, Jr. instructed agencies to ramp up their spending.

However, he said the full-year GDP growth may still reflect cautious spending by infrastructure-related agencies in the fourth quarter, although the impact is expected to be less pronounced than in the third quarter.

Mr. Balisacan said the nine-month average growth of 5% is still “quite respectable.”

“That still places us something like in the middle of the pack among our neighbors. But hopefully, our intention is to move back to the top tier of these Asian countries next year,” he said.

Even though economic growth may have slowed, Mr. Balisacan said the Philippines remains one of the best-performing economies in the region.

“Don’t be misled by just looking at one quarter, because the economy goes through cycles. We are probably in this part of the cycle, and obviously instigated by these developments related to our governance issues,” he said.

Mr. Balisacan also said major political uncertainty is a deterrence to economic growth but noted that the rule of law needs to be respected.

“We have a constitution. We have rule of law. And we need to abide by those rules. Otherwise, the investing community and the public will not see certainty in the future,” he said.

Amid the flood control controversy, Mr. Balisacan said DEPDEv’s Regional Project Monitoring Committees have already validated 9,290 of 9,855 flood control projects nationwide through the Rapid On-Site Verification Report (ROVeR). The final reports will be submitted to the Office of the President.

He said the DEPDEV is preparing an executive report to guide the administration in navigating governance challenges and the path forward in 2026.

“This report will feature economic analysis, scenarios and policy options, as well as strategic proposals for institutional strengthening to protect our economy’s hard-won gains,” he said.

The document will be released to the public after discussions with the President and Cabinet.

2026 Asean chairmanship

Meanwhile, Mr. Balisacan expects a surge in tourism when it assumes the chairmanship of the Association of Southeast Asian Nations (ASEAN) in 2026.

“We surely take advantage of that position of being the chair because the attention of the world will be with us, focus on us, so we need to seize that moment of opportunity,” he said.

He said the government is aligning infrastructure programs to meet the “experiential needs” of visitors, aiming to bolster confidence in the country as a destination for tourists and investors.

Mr. Balisacan clarified that these infrastructure projects for the 2026 ASEAN Summit had no delays and were planned two years ago.

“The projects, particularly transport projects, most of these are ODA (official development assistance)-funded, and ODA projects were not affected at all by these controversies. There were no delays in the implementation of these projects,” he said.

Economy Undersecretary Rosemarie G. Edillon said hosting major international events has historically lifted the country’s growth.

“We hosted the APEC (Asia-Pacific Economic Cooperation), and we saw that the sectors of transport, communication, hotel, restaurant and accommodation, and then the export of services, which is really to do with international travel, actually grew double digits at that time,” she said in the same panel.

UMIC status

The Philippines is still on track to graduate to upper middle‑income country status (UMIC) next year, Mr. Balisacan said.

However, this will depend on the World Bank which may set new thresholds in July 2026, as well as the exchange rate, inflation and exchange rate, he added.

The World Bank’s latest country income classification showed the Philippines remained a lower middle-income country with a gross national income (GNI) per capita of USD 4,470. This was higher than its GNI per capita of USD 4,230 in the previous year.

The World Bank classifies a country as lower middle-income if the GNI per capita level is betweenUSD 1,136 and USD 4,495.

The Philippines’ GNI per capita was only USD 26 shy of the World Bank’s adjusted GNI per capita requirement of USD 4,496 to USD 13,935 to become a UMIC. — Aubrey Rose A. Inosante

Headline inflation likely eased in November as lower prices of food, particularly rice, may have tempered higher utility costs during the month, analysts said.

A BusinessWorld poll of 15 analysts yielded a median estimate of 1.6% for November inflation, within the Bangko Sentral ng Pilipinas’ (BSP) 1.1-1.9% month-ahead estimate.

If realized, last month’s consumer price index (CPI) eased from the 1.7% clip in October and 2.5% logged a year ago.

It could also be the slowest clip in three months or since the 1.5% seen in August, and could mark the ninth straight month that inflation fell below the central bank’s 2-4% target.

A 1.6% November inflation print would bring the 11-month average inflation to 1.7%, matching the central bank’s forecast for the year.

The Philippine Statistics Authority is scheduled to release November inflation data on Dec. 5.

Maybank Investment Bank economist Azril Rosli said inflation likely slowed in November as food price pressures eased.

“Easing food price pressures, particularly in staple commodities such as rice and vegetables, were driven by improved supply conditions during the harvest season,” Mr. Rosli said in an e-mail.

Miguel Chanco, chief emerging Asia economist at Pantheon Macroeconomics, said the latest food price figures suggest food inflation likely continued to slow but not “below zero” as previously expected.

Union Bank of the Philippines Chief Economist Ruben Carlo O. Asuncion said disinflationary pressures remained dominant in November, particularly rice deflation.

“Continued price declines in rice — a high-weight item in the CPI basket — acted as a powerful dampener on overall inflation,” he said in an e-mail. “This trend has been well-documented and remains a key driver of the low headline reading.”

Latest Department of Agriculture data showed that the average price of local regular milled rice fell by 16.45% to PHP 37.28 per kilo in the Nov. 10-15 period from PHP 44.62 per kilo a year ago. Well-milled rice likewise declined by an annual 11.68% to PHP 42.33 per kilo from PHP 47.93, while special rice inched down by 5.12% to PHP 56.92 per kilo from PHP 59.99 in 2024.

The ban on rice imports, which was originally scheduled to end on Nov. 2, was extended until end-2025.

Mr. Asuncion said price movements in other agricultural products were “mixed,” noting that limited new data on vegetables and perishables could introduce “some uncertainty.”

ANZ Research Chief Economist for Greater China Raymond Yeung and economist Vicky Xiao Zhou said a “modest increase” in electricity rates could have driven utility inflation higher.

Manila Electric Co. raised the overall electricity rate for a second month in a row in November by PHP 0.1520 per kilowatt-hour (kWh) to PHP 13.4702 per kWh.

“Relatively stable global crude oil prices coupled with the peso’s resilience against the US dollar helped anchor transport and utility costs,” Mr. Rosli said. “Furthermore, tempered domestic demand and the transmission effects of the BSP’s previous monetary policy adjustments continued to exert disinflationary pressure.”

Angelo B. Taningco, chief economist at Security Bank, said the peso depreciation may have also contributed to November inflation.

The peso finished stronger versus the greenback at PHP 58.645 per dollar at end-November, climbing by 20.5 centavos from PHP 58.85 at end-October. It recovered slightly after ending at the PHP 59 level several times last month, even hitting a new record low of PHP 59.17 on Nov. 12.

More room to cut

Analysts continue to see full-year inflation falling below the BSP’s 2-4% target, leaving room for a more accommodative policy stance for the central bank.

“We project inflation to average below the BSP’s target range this year. It is expected to pick up to within the target range next year, largely due to base effects,” Chinabank Research said.

Mr. Chanco said the BSP’s 1.7% forecast for this year is “still on track, though the risks are tilted slightly to the downside.”

Mr. Asuncion said he sees inflation averaging 1.6% this year due to persistent rice deflation, subdued energy costs and muted food price pressures.

“Demand-side pressures remain muted, and upside risks — such as supply shocks or geopolitical tensions — are unlikely to materially alter the year-end trajectory,” he said.

Reinielle Matt M. Erece, an economist at Oikonomia Advisory & Research, Inc., said he expects the BSP to cut by 25 bps at its Dec. 11 meeting.

“If we add the slow economic growth to the equation, it’s almost guaranteed that the BSP will remain on their monetary policy easing path,” he said in a Viber message.

In the third quarter, the Philippine economy expanded by 4% year on year, slowing from 5.5% in the second quarter and 5.2% a year ago. This brought economic growth as of September below the government’s 5.5-6.5% full-year target at 5%.

“Consequently, inflation should remain subdued, and we expect the Bangko Sentral ng Pilipinas to deliver two additional 25-bp rate cuts during the current easing cycle,” ANZ Research’s Mr. Yeung and Ms. Zhou said. 

The central bank has reduced key borrowing costs by 175 bps since it began its easing cycle in August 2024, bringing the policy rate to a three-year low of 4.75%.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said headline CPI will likely remain below the BSP’s target until March next year, before accelerating to 2% to 3% from April until December due to base effects. 

The BSP projects inflation to return to the target band at 3.1% next year, before slowing to 2.8% in 2027. — Katherine K. Chan

S&P Global Ratings on Thursday affirmed the Philippines’ investment grade credit rating with a “positive” outlook, noting that its growth prospects remain strong even as the corruption scandal weighs on the economy this year.

In a statement, S&P said it kept its long-term “BBB+” and short-term “A-2” credit ratings on the Philippines, as well as its  positive outlook.

The “BBB+” sovereign rating is a notch below the “A”-level grade targeted by the government, while a positive outlook means the Philippines’ credit rating could be raised within 24 months if improvements are sustained.

“A slowdown in public infrastructure investment in the Philippines is weighing on its near-term growth prospects. However, we believe this is temporary and economic growth prospects remain strong,” the debt watcher said.

S&P noted the ongoing probe into anomalous flood control projects halted some infrastructure works and slowed public works spending, which is expected to dent gross domestic product (GDP) growth this year.

“However, we believe this will not derail the country’s long-term growth trajectory, which remains healthy,” it said.

The Philippine economy expanded by 4% in the third quarter, its slowest pace in over four years amid a slump in state spending and consumption due to the corruption scandal. This brought the nine-month GDP growth to 5%, below the government’s 5.5-6.5% full-year target.

Allegations of widespread corruption in public works projects have sparked outrage and protests, and dampened investor and consumer confidence.

S&P earlier this week trimmed its Philippine GDP growth forecast to 4.8% from 5.6% for 2025. If realized, economic growth would undershoot the government target.

It also lowered its Philippine growth projection to 5.7% for 2026 from 5.8%, also below the government’s 6-7% goal.

“Nevertheless, we envisage growth in the Philippines will remain well above the average for peers at a similar level of development, on a 10-year weighted-average per-capita basis,” S&P said.

“The country has a diversified economy with a strong record of high and stable growth. This reflects supportive policy dynamics and an improving investment climate.”

S&P said growth in investments as well as robust public and private consumption will fuel the Philippine economy next year until 2028.

“The Philippines government has generally enacted effective and prudent fiscal policies over the past decade, in our opinion. Improvements in the quality of expenditure, manageable fiscal deficits, and low general government indebtedness testify to this,” S&P said.

The Philippines first obtained a positive outlook from S&P in November 2024, when it also affirmed the country’s credit ratings.

“The positive rating outlook reflects our view that the Philippines will maintain its external strength and healthy growth rate, and fiscal performance will strengthen over the next 12-24 months,” S&P said.

The National Government is aiming to secure an “A” credit rating, but then-Finance Secretary Ralph G. Recto had said that the multibillion-peso flood control corruption mess may have derailed its chances of earning a credit rating upgrade.

However, S&P said the Philippines’ credit rating could be raised if it reduces its current account deficit and budget gap faster over the next two years.

S&P could also shift its outlook back to “stable” if the country’s GDP continues to grow slower than expected and if it maintains a wide current account deficit that would weaken its external financial position.

The debt watcher said that the “BBB+” credit rating was affirmed as it saw the government stabilizing its debt burden amid its fiscal consolidation efforts.

“The country’s external position remains a rating strength, although current account deficits in recent years have decreased net external assets,” it added.

S&P said the government’s fiscal position will also “gradually strengthen as the economy stabilizes.”

It expects the country’s budget deficit to average around 3% of GDP within the next three years.

“The long-term rating outlook remains positive, reflecting our assessment that institutional and policy settings in the Philippines could provide stronger support for sovereign credit metrics over the next 12-24 months,” S&P said.

Meanwhile, Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. and Finance Secretary Frederick D. Go welcomed S&P’s rating affirmation.

“S&P’s rating decision confirms our view of the favorable long-term economic growth prospects,” Mr. Remolona said in a statement.

He said the Philippines “remains well-positioned against external risks,” supported by $110.2 billion in gross international reserves.

For his part, Mr. Go said the government will continue to ensure that its policy decisions will support sustainable growth and long-term stability.

“Having a high credit rating will benefit Filipinos because this means cheaper financing for the government, and in effect, more resources for essential public services. This supports our goal of uplifting the life of every Filipino,” he said.

The Philippines holds investment grade ratings with the two other major debt watchers, with a “BBB” from Fitch Ratings and “Baa2” from Moody’s Ratings. — Katherine K. Chan

The Philippines jumped nine spots in an annual ranking of countries’ ability to attract and retain talent, according to a report by business school Institut Européen d’Administration des Affaires (INSEAD) and the  Portulans Institute.

In the Global Talent Competitiveness Index (GTCI) 2025, the Philippines ranked 75^th out of 135 economies, improving from 84^th in 2023. It had an overall score of 42.39 out of a possible 100.

This was the country’s best ranking since 2021 when it was at 70^th place.

The index looks at how countries and cities grow, attract and retain talent.

“These developments highlight the Philippines’ ongoing efforts to strengthen managerial capability, enhance workforce adaptability, and foster an innovation-driven, digitally connected talent landscape,” the report read.

The Philippines ranked eighth among its peers in the East and Southeast Asian region.

Singapore ranked first overall with a score of 73.29, followed by Japan (28^th), South Korea (31^st), Brunei (43^rd), Malaysia (46^th), China (53^rd) and Mongolia (65^th).

The Philippines was also the top performer among lower middle-income economies, outpacing regional peers such as Vietnam (76^th), Thailand (77^th) and Indonesia (80^th).

“Among lower middle-income economies, Lebanon, the Philippines, and India stand out for their growing emphasis on transferable and future-oriented skills,” the report said.

Soft skills

Also, the Philippines was surprisingly the only lower middle-income economy in the soft skills top 10, which was dominated by high-income economies led by Denmark, Iceland and Switzerland.

The report said this underscores that “human-centric capabilities — such as communication, teamwork, and adaptability — are increasingly vital drivers of talent competitiveness across all income groups.”

The Philippines ranked 50^th in the “Grow” pillar, supported by strong outcomes in lifelong learning (27^th), employee development (27^th) and high digital engagement, including the 20^th ranked use of virtual social networks among professionals.

Market competitiveness also improved, with the Philippines placing 35^th in the extent of market dominance and 54^th in sustainability.

The Philippine labor market continues to show strong private sector management practices — 12^th in professional management, 19^th in cluster development and 22^nd in ease of finding skilled employees.

“Economies that align education, labor and innovation systems towards adaptive talent development can achieve high performance even with modest income levels,” said Paul Evans, emeritus professor of organizational behavior at INSEAD and co-editor of the report.

Rafael Escalona Reynoso, chief executive officer of Portulans Institute, said the most crucial skills today are adaptive ones: “the ability to collaborate, think across disciplines, innovate under pressure and navigate fast-moving, tech-driven environments.”

“These are the skills that increasingly define a country’s competitiveness — and the GTCI now captures this reality more clearly than ever,” he added.

However, the report noted persistent weaknesses in the Philippines’ ability to attract foreign talent. The Philippines ranked 88th in the “Attract” pillar, dragged down by low external openness metrics such as migrant stock (135^th).

Governance and regulatory indicators also pulled down scores in the “Enable” pillar, where the Philippines placed 77^th, reflecting gaps in the rule of law, corruption control and political stability.

Despite these challenges, the GTCI findings suggested the Philippines is developing the right capabilities to support higher-value industries.

The country scored above its income-group average in overall GTCI performance — 42.39 versus 33.64 — and demonstrated strong upward mobility relative to peers.

The results come as the Marcos administration pushes reforms in education, skills training and digitalization to strengthen the workforce and attract investment.

The report’s emphasis on adaptability and lifelong learning aligned with efforts to reskill Filipino workers for artificial intelligence- and technology-intensive sectors.

Singapore, Switzerland, Denmark, Finland and Sweden led the index as top performers. The five lowest-ranking countries were all in Africa — Burkina Faso, Madagascar, Mozambique, the Democratic Republic of the Congo and Chad.

On the Philippines’ low score in attracting foreign talent, University of the Philippines Diliman School of Labor and Industrial Relations Assistant Professor Benjamin B. Velasco said labor migration continues to drain the Philippines of skilled workers, even as the country’s strong English proficiency helps drive its rise in global talent competitiveness.

“It is a good thing that the Philippines is rising in talent competitiveness. Despite evident deficits in basic education, our English proficiency drives talent competitiveness given the reality of global supply chains in services,” he said via Facebook Messenger.

To sustain and expand this progress, he said the government must fix basic education gaps, significantly increase higher-education spending to 6% of gross domestic product and rationalize vocational-technical training.

He also urged the full implementation of the Labor Education Act to embed workers’ rights and career guidance into higher education and technical-vocational curricula.

Federation of Free Workers President Jose Sonny G. Matula said the Philippines’ rise in the index is a bright spot amid concerns over corruption and substandard infrastructure projects.

The improvement showed the country’s strength in developing lifelong learning, digital skills and professional management, he added.

“This is also a reminder to government and business: rankings are not enough — people must feel it in their wages, job security, and quality of education,” he said via Viber, noting the importance of building awareness of decent work through education.

While Filipino talent is globally competitive, Mr. Matula said the larger challenge is ensuring workers aren’t compelled to migrate or endure precarious employment to make ends meet. — Chloe Mari A. Hufana, Reporter

The national government’s (NG) fiscal position swung to a surplus in October as revenues and expenditures declined amid a corruption scandal, the Bureau of the Treasury (BTr) said on Wednesday.

Data from the Treasury showed a PHP 11.2-billion surplus in October, a turnaround from the P248.08-billion deficit in September and wider than the PHP 6.3-billion surplus seen in October 2024.

This was the first budget surplus since the PHP 67.3-billion surplus in April.

In October, government expenditures fell by 7.76% to PHP 430.6 billion from PHP 466.8 billion in the same month last year.

October marked the third straight month that expenditures declined on an annual basis, as disbursements for public works projects were tightened amid a widening corruption probe.

Primary spending — which refers to total expenditures minus interest payments — fell by 9.29% to PHP 373.2 billion in October from PHP 411.4 billion a year earlier.

Interest payments rose by 3.57% to PHP 57.4 billion in October this year from PHP 55.4 billion in the same month in 2024.

At the same time, revenue declined by 6.64% to PHP 441.7 billion in October from PHP 473.1 billion in the same month last year.

Tax revenues inched down by 0.09% to PHP 414.5 billion in October from PHP 414.9 billion in the same month in 2024.

The bulk or 69.62% of tax revenues came from the Bureau of Internal Revenue (BIR), whose collections rose by 1.02% to PHP 328.8 billion in October from PHP 325.5 billion a year ago.

This included a PHP 211-billion tax refund, which pushed the gross BIR collections to HP P329.1 billion.

“This robust performance was driven by collections from corporate income tax, personal income tax, value-added tax, percentage tax on banks/financial institutions, and excise tax on tobacco products,” the BTr said.

The Bureau of Customs (BoC) saw revenues fall by 4.52% to PHP 83 billion in October from PHP 86.9 billion a year ago, as a ban on rice imports started in September.

Nontax revenues plunged by 53.29% to PHP 27.2 billion in October from PHP 58.3 billion in the same month in 2024.

BTr revenues dropped by 13.82% to PHP 12.5 billion in October, while other offices slid by 66.39% to PHP 14.7 billion.

Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc., said in a Viber message that the wider surplus in October is mainly caused by the sharp decline in government spending.

“Since public spending issues became a hot topic, the government became very cautious to avoid backlash, thus spending went down significantly,” he said.

However, he noted that revenues also declined due to slower economic activity and less tax filings.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the budget surplus to the government’s lower disbursement in implementation of anti-corruption measures.

The wider surplus could also signal more disciplined spending, Mr. Ricafort said in a Viber message.

Mr. Erece also noted that a surplus is not necessarily a positive sign and may signal poor budget efficiency.

“Surpluses mean that there are still cash or resources that can be used to further drive growth,” he said.

10-month deficit

For the first 10 months, the NG budget deficit sharply widened to PHP 1.11 trillion from the PHP 963.9-billion gap in the same period last year.

“The 10-month fiscal gap was underpinned by a 1.13% growth in revenues, amidst the non-recurrence of last year’s extraordinary nontax receipts, matched with a modest 3.9% expansion in expenditures,” the BTr said.

The Treasury said the end-October fiscal gap showed the “government’s continued implementation of priority programs and projects to accelerate inclusive economic growth and drive meaningful social transformation.”

“The year-to-date deficit remains in line with the government’s fiscal consolidation goal at 70.83% of the FY 2025 revised full-year target of P1.56 trillion,” BTr said.

State spending rose by 3.9% to PHP 4.91 trillion in the January-to-October period. This was already 80.8% of the PHP 6.08-trillion revised full-year expenditure program.

Primary expenditures rose by 2.45% to PHP 4.19 trillion as of end-October, while interest payments went up by 13.24% to PHP 723.2 billion.

“The minimal growth in primary expenditures was affected by the contraction in infrastructure spending amid the ongoing probe on the DPWH’s flood control issues and review of project implementation,” it said.

Meanwhile, total revenue collection during the January-to-October period slipped by 1.13% to PHP 3.81 trillion. The BTr said the cumulative collection was 84.25% of the PHP 4.52-trillion revised full-year program.

Tax revenues rose by 7.45% to PHP 3.47 trillion, which was already 82.28% of the PHP 4.21-trillion target.

BIR collections went up by 7.45% to PHP 3.47 trillion, accounting for 82.35% of the agency’s PHP 3.22-trillion full-year target.

Customs collection inched up by 0.91% to PHP 784.6 billion as of end-October. This was 81.84% of the revised PHP 958.7-billion program for the year.

Nontax revenues plunged by 36.71% to PHP 341.3 billion for the first ten months of the year, even as it has already exceeded the PHP 301.5-billion full-year nontax revenue program by 11.37%.

Treasury income slipped by 6.75% to PHP 209.6 billion as of end-October, while other offices’ income slumped by 58.12% to PHP 131.7 billion.

In the coming months, Mr. Ricafort said there is still a “good chance” that the NG could hit the PHP 1.56-trillion budget deficit ceiling by yearend.

“(This) could be made possible by further fiscal reform measures, tax reform measures, especially anti-corruption measures/reforms to increase the structural source of National Government revenues and to prevent corruption, wastage, leakages on the government expenditure side, as part of the overall priority on governance reforms,” he said. — Aubrey Rose A. Inosante, Reporter

The Department of Agriculture (DA) said it has ordered importers to explain the slow arrival of red onion shipments, warning that unused import permits will be canceled and reallocated as retail prices climbed above PHP 300 per kilo ahead of the holiday season.

The Bureau of Plant Industry (BPI) is reviewing the utilization of Sanitary and Phytosanitary Import Clearances (SPSICs) after data showed that permits for red onions are being used at a much slower pace than those for yellow onions, despite significantly higher demand for the red variety, the DA said.

“We want to know the status of those import permits — if they plan to use them. If not, we will cancel the permits and award them to other importers to ensure sufficient domestic supply, especially at this time of year,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. was quoted as saying in a statement.

The DA earlier issued SPSICs for up to 69,040 metric tons (MT) of red onions and 42,261 MT of yellow onions.

As of Nov. 20, importers have only used 192 of the 1,202 SPSICs issued for red onions, bringing in 12,824 MT since September.

According to the DA, the slow utilization of permits for red onions comes amid higher demand, with monthly consumption estimated at around 17,000 MT.

The DA said vegetable vendors have reported tight supply in markets, with red onion prices surging past P300 per kilo.

Mr. Laurel said import permits that are not being used will be canceled and reassigned to other importers, including the state-run Food Terminal, Inc., to speed up onion importation and help ease supply pressures.

Sought for comment, Danilo V. Fausto, president of the Philippine Chamber of Agriculture and Food, Inc., said that while onion prices normally increase as the holiday season approaches due to tight supply, importers may also be deliberately delaying shipments.

“I think traders are trying to leverage for good prices, but I think they can do this only up to December. Shortage of supply could be deliberate to bring up prices,” he told BusinessWorld via Viber.

He added that some cold storage facilities still hold imported and local onions and will only release them starting next week.

According to the DA, all SPSICs must be used by Jan. 15, 2026, a deadline set to prevent importers from hoarding clearances to influence supply and prices.

The schedule is also designed to ensure that arrivals of imported onions do not overlap with the domestic harvest, which could depress farmgate prices and hurt local farmers. — Vonn Andrei E. Villamiel