Business World Article Archive | Page 30 of 348

NG debt to hit PHP 24.7T by 2030; debt-to-GDP ratio to fall — DoF

Finance Secretary Ralph G. Recto on Monday said the government is working to ensure that economic growth would outpace debt accumulation, as outstanding debt is projected to hit PHP 24.7 trillion by 2030.

“We will make sure that the economy would continue to outgrow the country’s debt,” he said during the Development Budget Coordination Committee briefing before the House of Representatives Appropriations Committee. “This would ensure that we have the ability to pay off our obligations.”

Economic managers are targeting 5.5-6.5% economic growth this year, and 6-7% growth from 2026 to 2028.

Mr. Recto said the value of the Philippine economy is projected to reach PHP 42.6 trillion by 2030, while the debt of PHP 24.7 trillion would account for 58% of gross domestic product (GDP).

This would be the first time since 2020 that the debt-to-GDP ratio would fall below the 60% threshold considered by multilateral lenders to be manageable for developing economies.

The National Government (NG) debt jumped to a fresh high PHP 17.27 trillion as of end-June, bringing the debt-to-GDP ratio to 63.1%.

NG debt is projected to reach PHP 17.4 trillion by the end of 2025, although the debt-to-GDP ratio is seen slipping to 61.3%.

In 2026, outstanding debt is expected to rise to PHP 19.1 trillion, with the debt-to-GDP ratio inching up to 61.8%.

Debt is projected to rise to PHP 20.5 trillion in 2027, with a debt-to-GDP ratio dipping to 61.3%.

By 2028, debt is forecast to reach PHP 21.9 trillion with the debt-to-GDP ratio dropping to 60.3%.

The Department of Finance (DoF) expects debt to hit PHP 23.3 trillion but the ratio is seen to fall to 59.5% of GDP by 2029.

These projections are only possible if the government maintains disciplined and efficient spending, while “strictly” following the Marcos administration’s fiscal consolidation strategy aimed at reducing the debt stock, said Mr. Recto.

“We are determined to stick to our medium-term fiscal program by exercising the highest level of fiscal prudence,” he said.

Mr. Recto’s economic projections are only possible if the debt taken on by the government is used to fund projects that could increase productivity and generate jobs, said Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc.

“These actions will ensure that income growth remains strong, and higher income results in higher tax revenues for the government,” he said in a Viber message.

The government’s borrowing program to help fund next year’s PHP 6.793-trillion national budget was set at P2.68 trillion, up 3.15% from PHP 2.6 trillion in 2025. Domestic borrowing was set at PHP 2.05 trillion for 2026, while external loans were pegged at PHP 627.1 billion.

The government should also prioritize investments in education, infrastructure and digital transformation — sectors that could compound growth via a multiplier effect — to meet the economic forecast, Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said in a Viber message.

Mr. Ravelas said authorities should also look at broadening the tax base, but without overburdening Filipinos.

Meanwhile, Mr. Recto did not mention any new tax measures that the DoF wants Congress to approve.

“People are naturally resistant to taxes,” said Mr. Recto. “But their tax obedience can be won if they will see how the taxes they paid are spent for the right things, by the right agency, at the right time.”

In a statement after Mr. Recto’s presentation, the Finance department said the government has expanded its revenue collection by double digits in the last three years, averaging 13.8% annually.

“From 2025 to 2028, tax revenues are projected to grow 10.2% annually, pushing total revenues to hit nearly PHP 6 trillion by the end of the President’s term. By 2030, total revenues will breach the PHP 7-trillion mark,” it said. — Kenneth Christiane L. Basilio

Philippine current account gap seen widening over medium term

The Philippines’ current account deficit could further widen over the medium term as global trade uncertainties affect external demand, Fitch Solutions unit BMI said.

“We now expect the Philippines’ external position to deteriorate as trade fragmentation and its knock-on effects on global demand will weigh heavily on exports,” it said in a report.

BMI expects the current account deficit to average -2.8% of gross domestic product (GDP) over the next three years. This is wider than the -0.4% average during the 2015-2019 period.

It sees the current account gap to settle at -3% of GDP this year, before narrowing to -2.8% in 2026, -2.6% in 2027, and -2.3% in 2028.

Data from the Bangko Sentral ng Pilipinas (BPS) showed the current account deficit widened to -3.7% of GDP in the first quarter, versus -1.9% in the same period in 2024. The BSP expects the current account deficit to be -3.3% this year, and -2.5% in 2026.

BMI said the outlook is “hardly surprising” as key trading partners such as the US and China are facing more challenges, which could dampen demand for Philippine exports.

The US is projected to grow by 1.7% this year, slowing from 2.8% in 2024, while China GDP is forecast to ease to 4.8% this year from 5% in 2024.

“Beyond the two economic giants, the global trade landscape is clouded by a rise in US tariffs, which we think will impact the global economy more negatively in the coming years,” BMI said.

The US started implementing higher tariffs on most of its trading partners earlier this month, with Philippine goods now subject to a 19% tariff.

In June, the US was the top destination for Philippine-made goods with USD 1.22 billion (17.3% share). It was closely followed by Hong Kong (USD 1.065 billion or 15.2% share), Japan (USD 974.8 million or 13.9% share), and China (USD 733.99 million or 10.5% share).

BMI said weak global demand could likewise hit services exports, particularly the business process outsourcing (BPO) industry.

“The Philippines is a major player in global BPO, holding 15% of global market share and contributing 7.5% to domestic GDP. This makes it highly exposed to a weak global services environment,” it said.

Remittances are also expected to slow as growth is linked to economic conditions in key source countries such as the US, Singapore, Saudi Arabia, Japan and the United Kingdom, BMI said.

Meanwhile, Moody’s Ratings said the recently implemented US tariffs could pull down economic and investment growth in Asia.

“The tariffs have left countries across Europe and APAC (Asia-Pacific) feeling bruised because the US is the largest trading partner for a majority of them, and a decline in sales to their largest customer will hurt,” the credit rater said.

Despite this, Moody’s noted that a recession remains unlikely.

“We expect global growth to slow, but we don’t appear to be staring down the barrel of a recession,” it said. — Katherine K. Chan

Peso climbs as markets await Fed policy clues

The peso strengthened on Monday to return to the PHP 56 level against the greenback as investors’ focus turned to the US Federal Reserve’s symposium this week.

The local unit closed at PHP 56.965 per dollar, rising by 10 centavos from its PHP 57.065 finish on Friday, Bankers Association of the Philippines data showed.

The peso opened Monday’s session at almost unchanged at PHP 57.05 against the dollar. Its intraday best was its closing level of PHP 56.965, while its worst showing was at PHP 57.14 against the greenback.

Dollars exchanged dropped to USD 1.48 billion on Monday from USD 2.099 billion on Friday.

“The dollar-peso traded sideways as players waited on the sidelines ahead of the Jackson Hole symposium on Aug. 21 to 23 for possible hints from Fed officials on their easing path,” a trader said in a phone interview.

The peso was also supported by lower global crude oil prices, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Tuesday, 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 57.15.

The US dollar wobbled on Monday ahead of what is likely to be an eventful week for US interest rate policy, while oil prices were subdued as risks to Russian supplies seemed to fade somewhat, Reuters reported.

The major economic event of the week will be the Kansas City Federal Reserve’s Jackson Hole symposium, where Chair Jerome H. Powell is due to speak on the economic outlook and the central bank’s policy framework.

Markets imply around an 85% chance of a quarter-point rate cut at the Fed’s meeting on Sept. 17 and are priced for further easing by December. Wagers on more Fed easing have weighed on the dollar, which dropped 0.4% against a basket of currencies last week to last stand at 97.858.

In commodity markets, oil prices struggled as US President Donald J. Trump backed away from threats to place more restrictions on Russian oil exports, although White House trade adviser Peter Navarro said India’s purchases of Russian crude were funding Russia’s war in Ukraine and had to stop. Brent was flat at USD 65.81 a barrel, while US crude steadied at USD 62.81 per barrel. — A.M.C. Sy with Reuters

PSEi drops to 6,200 level amid lack of catalysts

Philippine shares dropped on Monday, pulling the main index back to the 6,200 level, as the market mostly moved sideways due to the absence of new trading drivers.

The benchmark Philippine Stock Exchange index (PSEi) dropped by 0.42% or 27.05 points to close at 6,288.88, while the broader all shares index fell by 0.27% or 10.12 points to 3,741.11.

“The local market’s sideways movement closed in the negative territory as investors sold off shares amid the lack of fresh leads,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message. “Trading was anemic… reflecting poor investors’ confidence towards the market amid the lack of a catalyst.”

“The PSEi closed at 6,288.88, down by 0.42%, as the market appears to be experiencing some profit taking from names that increased last week. Moreover, on a broader scale, the market seems to be in a consolidation phase, with investors likely waiting for more news before taking clearer directions,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that the local bourse dropped to track the decline seen on Wall Street on Friday.

US shares were down as investors assessed mixed data to gauge the US Federal Reserve’s monetary policy path this year, Reuters reported.

The central bank last lowered borrowing costs in December and said US tariffs could add to price pressures. However, recent labor market weakness and signs that tariff-induced inflation was yet to reflect in headline consumer prices have made investors confident of a potential dovish move next month.

On Aug. 15, the S&P 500 dropped by 0.29% or 18.74 points to 6,449.80; and the Nasdaq Composite index retreated by 0.4% or 87.69 points to 21,622.98; while the Dow Jones Industrial Average index rose by 0.08% or 34.86 points to 44,946.12.

Sectoral indices closed mixed on Monday. Financials sank by 1.45% or 31.40 points to 2,122.36; holding firms decreased by 0.31% or 16.90 points to 5,285.59; and property went down by 0.18% or 4.50 points to 2,412.32.

Meanwhile, mining and oil rose by 3.39% or 314.86 points to 9,587.25; industrials climbed by 0.15% or 14.41 points to 9,066.32; and services went up by 0.15% or 3.47 points to 2,274.83.

“San Miguel Corp. was the day’s index leader, jumping 9.81% to P61. Converge ICT Solutions, Inc. was the main index laggard, falling 3.33% to PHP 14.50,” Mr. Tantiangco said.

Value turnover went down to PHP 6.18 billion on Monday with 746.65 million shares traded from the PHP 10.35 billion with 1.55 billion shares exchanged on Friday.

Decliners bested advancers, 105 versus 85, while 63 names were unchanged.

Net foreign buying was at PHP 252.17 million on Monday, a turnaround from PHP 514.88 million in net selling recorded on Friday. — Revin Mikhael D. Ochave with Reuters

BIR to collect PHP 360B in excise taxes in 2026

The Bureau of Internal Revenue (BIR) is looking to increase excise tax collections by 9% in 2026, mainly driven by tobacco products.

In the 2026 Budget of Expenditures and Sources of Financing (BESF), the government is set to collect PHP 359.65 billion in excise taxes in selected goods, 9.35% higher than PHP 328.9 billion for this year.

The bulk or PHP 166.57 billion in excise taxes will be collected from tobacco products, even as the government sees significant losses due to illicit trade.

The BIR expects to collect PHP 132.07 billion in excise taxes from alcohol products, and PHP 42.09 billion from sugar-sweetened beverages.

It is also targeting to collect excise taxes from mining (PHP 11.85 billion) and automobiles (PHP 6.54 billion).

Notably, the government took out the projected revenue from the proposed tax on single-use plastics, as the measure has yet to be approved by Congress.

The Philippines is bleeding USD 2 billion (PHP 114 billion) in lost revenues due to the proliferation of illicit tobacco trade in the country, a consultancy firm said at a forum last week.

BIR Commissioner Romeo D. Lumagui, Jr. earlier said the government loses billions of revenues due to illicit tobacco trade coupled with Health department’s campaign to discourage tobacco use.

Mr. Lumagui also said illicit tobacco manufacturers are using economic zones to avoid paying excise taxes even though the products are sold in the Philippines.

“If it’s meant for export and not for local consumption, there’s no excise tax. It’s being manufactured here in the ecozones. That’s what they’re trying to show — that the license they’re getting is for exporting all these products,” he told reporters during a tobacco forum on Aug. 5.

In the first half, excise taxes on tobacco went up 34.16% to PHP 58.97 billion in the January-to-June period, after several months of continued contraction. — ARAI

Peso may be range-bound as mart awaits policy hints from Fed chief

The peso could continue to move sideways against the dollar this week as markets monitor developments at the US Federal Reserve as the Trump administration continues to pressure the central bank to cut interest rates.

On Friday, the local unit closed at PHP 57.065 per dollar, weakening by 12 centavos from its PHP 56.945 finish on Thursday, data from the Bankers Association of the Philippines showed.

Meanwhile, week on week, the peso inched up by 4.5 centavos from its PHP 57.11 close on Aug. 8.

The peso dropped on Friday as the dollar gained early in the session on faster-than-expected July US producer inflation data, which tempered Fed rate cut expectations, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The dollar-peso closed higher after stronger than expected US producer price inflation (PPI) data brought down Fed cut bets,” a trader likewise said in a phone interview on Friday.

The dollar held on to previous session gains early on Friday after hotter-than-expected inflation data prompted traders to trim wagers on rate cuts by the Fed, Reuters reported.

Overnight, markets had to contend with US producer prices showing the quickest rise in three years in July amid a surge in the costs of goods and services, pointing to a broad pick up in inflationary pressures which analysts say could pose a dilemma for the Fed.

The hot measure of producer price inflation followed a comforting consumer inflation outcome earlier in the week which had boosted expectations of policy easing in the world’s largest economy and helped lift risk assets across the board. Odds of a 25-basis-point cut by the US central bank retreated slightly after the producer price figures, per CME’s FedWatch tool.

Markets also await this week’s Jackson Hole symposium, where Fed Chair Jerome H. Powell will give a speech, for clues on the Fed’s next move. Signs of weakness in the US labor market combined with any inflation from trade tariffs could present a dilemma for the Fed’s rate cut trajectory.

For this week, the trader said the peso could continue trading sideways against the dollar ahead of the release of the minutes of the Fed’s latest policy meeting.

“Markets are also awaiting developments if the Fed chair will be replaced,” the trader said.

The trader sees the peso moving between PHP 56.80 and PHP 57.30 against the dollar this week, while Mr. Ricafort expects it to range from PHP 56.70 to PHP 57.30. — A.M.C. Sy with Reuters

Bargain hunting, BSP easing hopes may lift PSEi

Philippine stocks may continue to move sideways this week and get a lift from hopes of further monetary easing and bargain hunting as investors wait for new catalysts.

On Friday, the bellwether Philippine Stock Exchange index (PSEi) rose by 0.38% or 24.08 points to close at 6,315.93, while the broader all shares index increased by 0.21% or 8.20 points to 3,751.23.

Week on week, however, the PSEi fell by 0.37% or 23.45 points from the 6,339.38 finish on Aug. 8.

“The PSEi closed marginally lower [last] week as investors sifted through second-quarter earnings data while weighing a potential Federal Reserve rate cut,” online brokerage 2TradeAsia.com said in a market note.

“Profit taking took over last week as local economic concerns weighed on sentiment. The local market has been alternately moving between gains and losses for 10 weeks already as investors remain indecisive of its direction,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

For this week, Philippine shares could remain range-bound, he said.

“With the market at attractive levels, we may see some bargain hunting in this week’s trading,” Mr. Tantiangco said. “A strong rally is not expected, however, unless we see fresh positive leads. Investors are still expected to maintain a cautious stance while waiting for new catalysts.”

He added that expectations of a rate cut at the Bangko Sentral ng Pilipinas’ (BSP) Aug. 28 policy meeting could give the market support.

Last week, BSP Governor Eli M. Remolona, Jr. said a rate cut is “quite likely” at their meeting this month as inflation is likely to settle within its annual target.

The central bank has lowered borrowing costs by 125 basis points (bps) since it began its easing cycle in August 2024, bringing the benchmark rate to 5.25%.

Mr. Remolona said they are expecting to deliver two more rate cuts this year. However, three reductions are “unlikely.”

Mr. Tantiangco said the PSEi is expected to trade between 6,150 and 6,400 this week. “From a technical standpoint, the local market is still bearishly biased as it continues to form lower highs.”

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort put the PSEi’s support at 6,204.04 and resistance at 6,591.94.

“BSP Governor Remolona reiterated dovish signals on possible monetary easing in terms of possible two 25-bp rate cuts for the rest of 2025 amid benign inflation and external uncertainties that could slow down local economic growth, signaling policy priority of boosting the local economy,” Mr. Ricafort said in an e-mail.

2TradeAsia.com placed the PSEi’s immediate support at 6,250 and resistance at 6,550.

“The divergence between a potential global risk-on rally and local market lull creates a tactical consideration for market participants… The impending easing cycle may be a significant potential catalyst for equities,” it said. — Revin Mikhael D. Ochave

Gov’t sees poverty incidence falling to as low as 8% by 2028

The Philippine government is confident it can bring down the poverty rate to single-digit levels by 2028.

“While we lowered our growth targets, we remain optimistic about reducing poverty rates to single-digit levels by 2028,” the Department of Economy, Planning, and Development (DEPDev) said in the midterm update of the Philippine Development Plan (PDP) 2023-2028.

Under the updated PDP, the government now aims to reduce the poverty incidence rate to 10-11% by 2027 and 8-9% by 2028. President Ferdinand R. Marcos, Jr.’s term will end in June 2028.

The poverty incidence target stood at 12-13% for 2025.

“Poverty incidence continues to fall, and we are intensifying efforts to ensure that the benefits of economic growth reach all regions and communities,” Economy Secretary Arsenio M. Balisacan said.

Data from the Philippine Statistics Authority (PSA) showed poverty incidence among the population fell to 15.5% in 2023 from the 18.1% estimate in 2021. This translated to 17.54 million poor Filipinos, 12.26% down from 19.99 million in 2021. This exceeded the 2023 poverty rate target of 16-16.4%.

“This indicates that nearly 2.4 million Filipinos were lifted out of poverty. Encouragingly, income growth among the poorer half of the population outpaced that of the wealthier half — signaling meaningful progress toward making economic growth more inclusive,” DEPDev said in the report.

The government has recalibrated the development plan at the midpoint of Mr. Marcos’ term, reflecting emerging domestic and global challenges.

Under the updated PDP, the government is aiming for 5.5-6.5% economic growth this year. It also narrowed the gross domestic product (GDP) target band to 6-7% from 2026 to 2028.

The PDP previously set a 6.5-8% GDP growth target until 2028.

“While slower economic growth typically poses a challenge to reducing poverty, the recent achievement provides a strong rationale for retaining current poverty targets,” DEPDev said.

With sustained focus on key priorities, such as health and food security, DEPDev expects the impact of growth to be more inclusive and pro-poor, supporting the attainment of poverty targets.

“Furthermore, we will enhance the efficiency of social assistance programs by developing a dynamic social registry and refining our targeting protocols. To further empower beneficiaries of ayuda programs, we will link them to initiatives on financial literacy and employment facilitation, enabling them to build resilience and better withstand future shocks,” it said.

UMIC status

Meanwhile, DEPDev said the Philippines is poised to achieve its upper middle-income country (UMIC) status in the “near term.”

“Achieving upper middle-income status is no longer a distant aspiration — it is now within reach,” Mr. Balisacan said.

Under the updated PDP, the government is targeting gross national income (GNI) per capita to reach $4,814-$4,920 this year and $5,124-$5,210 in 2026.

The government aims to have a GNI per capita of $5,452-$5,589 in 2027, and $5,882-$6,081 in 2028.

The World Bank’s latest country income classification released in July showed the Philippines remained a lower middle-income country even as it posted a record-high GNI per capita of $4,470.

The World Bank classifies a country as lower middle income if the GNI per capita level is between $1,136 and $4,495. A country has to have a GNI per capita of $4,496-$13,935 to be classified as upper middle income. — ARAI

June remittances rise 3.7% to six-month high

MONEY SENT home by Filipinos abroad grew faster in June to hit a six-month high, driven by remittances from land-based workers, the Bangko Sentral ng Pilipinas (BSP) said.

Cash remittances coursed through banks jumped by 3.7% year on year to $2.99 billion in June from $2.88 billion, the BSP said on Friday.

This was the highest value of monthly remittances seen in six months or since the $3.38 billion logged in December last year.

The year-on-year increase also picked up from the 2.9% logged in May, when remittances reached $2.66 billion.

“Cash remittances to the Philippines continued to grow in June of this year, with remittances from land-based overseas Filipinos (OFs) increasing faster than funds from sea-based OFs,” the central bank said.

Money sent home by land-based overseas Filipino workers (OFWs) climbed by 3.7% year on year to $2.43 billion in June, making up bulk of the total.

Remittances from sea-based OFWs also rose by 3.5% to $555 million that month.

“The increase in cash remittances drove an increase in personal remittances as well,” the BSP said.

Personal remittances, which include both cash coursed through banks and informal channels and in-kind remittances, climbed by 3.7% to $3.33 billion in June from $3.21 billion a year prior.

Workers with contracts of one year and above logged personal remittances worth $2.63 billion, up 3.6% year on year, while those with contracts of less thn one year sent home $610 million worth of cash and items, jumping by 3.9% from the previous year.

FIRST HALF
For the first semester, cash remittances from migrant Filipinos went up by 3.1% to $16.75 billion from the $16.25 billion recorded in the comparable year-ago period.

Money sent home by land-based workers rose by 3.3% year on year to $13.38 billion in the six months through June, while sea-based OFWs’ remittances increased by 2.2% to $3.38 billion.

The United States remained as the top source of cash remittances in the first half, accounting for 40.1% of the total.

This was followed by Singapore (7.1%), Saudi Arabia (6.2%), Japan (5%), the United Kingdom (4.9%), the United Arab Emirates (4.3%), Canada (3.3%), Qatar (2.9%), Korea (2.8%) and Taiwan (2.7%).

Meanwhile, personal remittances in the January-to-June period reached $18.67 billion, up by 3.1% from $18.1 billion a year prior.

Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, Inc., said the increase in cash remittances was “driven by sustained demand for Filipino workers abroad and improved remittance channels.”

“The growth was led by land-based workers, particularly in the Middle East and North America, where labor markets remain robust,” Mr. Asuncion said.

“It reflects continued resilience in global labor markets, especially in the US and Middle East, as well as seasonal boosts tied to school enrollment and mid-year expenses,” John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, likewise said.

He added that stronger exchange rates in destination countries may have encouraged overseas Filipinos to send more money back home.

The peso traded at the P55 to P57 levels against the US dollar in June, depreciating sharply mid-month as Israel and Iran exchanged attacks, with the US also joining the conflict later on before a temporary ceasefire was reached. However, the greenback’s strength that month was capped by dovish US Federal Reserve bets.

The BSP expects cash remittances to grow by 2.8% this year. — Katherine K. Chan

E-wallets told to drop gambling links

The Bangko Sentral ng Pilipinas (BSP) on Thursday ordered all electronic wallets (e-wallets), banks and other supervised institutions to remove in-app gambling assets, including any links that direct users to gaming or gambling websites.

“The BSP directive is issued in light of the surge in online gambling transactions and its impact on the financial health of consumers and their families, and considering the broader social cost,” the central bank said in a statement late Thursday.

The BSP said the suspension will remain in place until its guidelines for online gambling payment services are finalized.

BSP Deputy Governor Mamerto E. Tangonan said these financial firms were given 48 hours to remove the links that redirect users to gambling websites.

“The Monetary Board of the BSP has approved our policy ordering BSP-supervised institutions to take down and remove all icons and links redirecting to online gambling sites,” he said during a Senate committee hearing on online gambling.

In separate statements, GCash and Maya said they will comply with the BSP’s directive immediately.

E-wallets such as GCash and Maya have integrated gambling-related services in their apps, making it easy for users to access online casinos. This has helped fuel the popularity of online gambling in recent years.

However, concerns over rising gambling addiction and mounting debt have prompted lawmakers and regulators to consider measures to ban or restrict online gambling in the country.

Senator Alan Peter S. Cayetano questioned why it would take 48 hours to remove the links to online gaming sites when it could be done immediately.

“Why do they need 48 hours? Isn’t that instant? So if someone dies in 48 hours because they are addicted (to online gambling), is that okay?” said Mr. Cayetano, who heads the Senate Committee on Banks and Financial Institutions.

Mr. Tangonan said the 48 hours would be enough time for e-wallet operators to remove all links to online gambling sites.

“The other reason is so that we would give time for the customers to withdraw their funds from the online gaming account, once they learn that we are already removing the links from the mobile payment applications and websites,” he added.

Mr. Tangonan said that the removal of links to online gaming sites is an “immediate measure” as the BSP is still finalizing new rules to mitigate gambling-related harm by strengthening financial safeguards across banks, e-wallets, and payment platforms.

“The suspension of the in-house links from the mobile apps is an immediate measure, while we are finalizing regulations (on online gaming sites),” he said.

Mr. Tangonan said the use of credit cards to pay for online bets will also be prohibited by the BSP.

The BSP also proposed measures such as biometric ID checks, daily transaction limits, time-based payment restrictions, and user tools for spending caps, voluntary breaks, and self-exclusion.

The central bank said these safeguards aim to curb addiction, fraud, and financial harm while encouraging responsible use of digital finance.

E-wallets told to update apps

GCash said they will immediately enforce the changes on its app once it receives the official directive from the BSP.

“We share the BSP’s commitment to ensuring that digital financial services are used responsibly and in ways that protect the welfare of Filipinos,” GCash said.

Maya said the app will be updated in line with the BSP’s guidance.

“We assure customers that their accounts and transactions remain secure and fully operational. We remain focused on serving our customers while fully complying with regulatory requirements,” Maya said.

Senator Erwin T. Tulfo, who chairs the Games and Amusements Committee, warned that he would cite the BSP official in contempt if e-wallets still have links to gaming sites once the 48-hour deadline ends.

“Don’t mess with this committee. We have a problem, we have a crisis. When you say that the deadline is on Saturday, I’ll give you until Sunday. If there are still (gaming links) on e-wallets on Sunday morning, we’ll cite you in contempt,” Mr. Tulfo said.

Sought for comment, Ronald B. Gustilo, national campaigner for Digital Pinoys group, said that the central bank should ensure that all e-wallet platforms comply with its order to remove links to gaming websites.

“Noncompliance should be met with harsh penalties such as suspension or even revocation of license,” Mr. Gustilo said in a Viber message.

“Ultimately, the protection and well-being of each Filipino should be the paramount agenda of any policy or regulation implemented by the government,” he added.

Filomeno S. Sta. Ana III, coordinator of Action for Economic Reforms, said that the BSP should utilize advanced technologies and artificial intelligence (AI) to monitor fraudulent activities linked to online gambling.

“Advanced technologies that monitor activities in real time are available. AI too is a good tool to monitor patterns of fraudulent activities,” Mr. Sta Ana said in a Viber message.

Mr. Tulfo also called on the BSP, the Philippine Amusement and Gaming Corp. (PAGCOR), and other government agencies to create “concise solutions” against online gambling.

“We want a clear and concise solution. We are talking now because majority of us wants total ban on online gambling while you are asking for regulation due to foregone revenues. From the Senate’s end, we are inclined to ban it because social ills outweigh the income benefits,” he added.

President Ferdinand R. Marcos, Jr. has earlier said that a ban may drive people toward illegal gambling platforms. He called for a broad consultation involving various stakeholders before making a decision.

For its part, PAGCOR said that it was still studying if it would impose higher collection rates for licensed gaming operators.

“The PAGCOR is talking to (the Department of Finance) and we are studying the possibility,” PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco told reporters.

Mr. Tengco, however, warned that imposing higher collection fees could encourage some to operate illegally instead.

“Let’s see if we should raise it a little bit so that it will be more tight, or maybe it will backfire and the illegal (operators) will be more profitable,” he added.

PAGCOR collects a 30% rate from e-gaming platforms. This was earlier slashed from 35% to encourage more illegal gambling operators to register.

According to PAGCOR, the gaming industry’s gross gaming revenues (GGR) jumped by 26% to PHP 214.75 billion in the first half of 2025. This was driven by the electronic games sector which saw a 53.47% increase in gross revenues to PHP 114.83 billion.

PAGCOR expects GGR to surpass PHP 480 billion in 2025. — Adrian H. Halili, Reporter

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Monthly Economic Update: Fed catches up

2024 Mid-Year Economic Briefing: Navigating the Easing Cycle

Investing with Love: A Mother’s Guide to Putting Money to Work

Investor Series: An Introduction to Estate Planning

Philippines Trade Update: Exports momentum continues

Quarterly Economic Growth Release: More BSP cuts to come

Monthly Economic Update: Fed catches up

Archives: Business World Article

NG debt to hit PHP 24.7T by 2030; debt-to-GDP ratio to fall — DoF

Philippine current account gap seen widening over medium term

Peso climbs as markets await Fed policy clues

PSEi drops to 6,200 level amid lack of catalysts

BIR to collect PHP 360B in excise taxes in 2026

Peso may be range-bound as mart awaits policy hints from Fed chief

Bargain hunting, BSP easing hopes may lift PSEi

Gov’t sees poverty incidence falling to as low as 8% by 2028

June remittances rise 3.7% to six-month high

E-wallets told to drop gambling links

2024 Mid-Year Economic Briefing: Navigating the Easing Cycle

Investing with Love: A Mother’s Guide to Putting Money to Work

Investor Series: An Introduction to Estate Planning

Philippines Trade Update: Exports momentum continues

Quarterly Economic Growth Release: More BSP cuts to come

Monthly Economic Update: Fed catches up

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2024 Mid-Year Economic Briefing: Navigating the Easing Cycle

Investing with Love: A Mother’s Guide to Putting Money to Work

Investor Series: An Introduction to Estate Planning

Philippines Trade Update: Exports momentum continues

Quarterly Economic Growth Release: More BSP cuts to come

Monthly Economic Update: Fed catches up

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