Treasury fully awards reissued 10-year bonds

The government made a full award of the reissued Treasury bonds (T-bonds) it offered on Tuesday as strong investor demand caused its average yield to decline.

The Bureau of the Treasury (BTr) raised PHP 25 billion as planned from its offering of reissued 10-year bonds as total bids reached PHP 63.546 billion or more than twice the amount placed on the auction block.

This brought the total outstanding volume for the series to PHP 392.6 billion, the Treasury said in a statement.

The BTr said it fully awarded its offering as the average yield fetched for the bonds on offer was lower than the rate quoted when they were last reissued in June.

The T-bonds, which have a remaining life of nine years and nine months, were awarded at an average rate of 6.285%. Accepted bid yields ranged from 6.264% to 6.295%.

The average rate for the reissued papers went down by 14.3 basis points (bps) from the 6.428% fetched for the series’ last award on June 17 and was also 9 bps below the 6.375% coupon for the issue.

However, this was 3.2 bps above the 6.253% quoted for the 10-year bond and 1.4 bps higher than the 6.271% seen for the same bond series at the secondary market before Tuesday’s auction, based on PHP Bloomberg Valuation Service Reference Rates data provided by the BTr.

The reissued bonds were fully awarded amid “the consistent demand for the security ever since it released, as well as BTr’s constant support for the security,” a trader said in a text message.

The papers auctioned off on Tuesday are part of the PHP 300 billion in new benchmark fixed-rate Treasury notes (FXTN) issued on April 28. These were offered under a new issuance format meant to establish a new benchmark bond and targeting institutional investors like corporates, cooperatives, trust funds, retirement funds, and provident funds.

“Furthermore, the bond auction volume is a bit smaller this week compared to previous auctions, making it easier to fill,” the trader said.

“As for the awarded rate, market expectations were simply fulfilled, as early yield indications often predicted the auction’s yield range to be around 6.25%-6.3% or 6.265%-6.3%.”

Rizal Commercial Banking Corp. Michael L. Ricafort said the T-bonds fetched a lower average rate compared to the previous reissuance amid a moderating inflation outlook that could support further rate cuts by the Bangko Sentral ng Pilipinas (BSP).

“Local monetary officials recently signaled possible 50-bp local policy rate cuts for the rest of the year and a possible cut in banks’ RRR (reserve requirement ratios) in 2026 amid the still-benign inflation environment despite the recent tensions between Israel and Iran amid global risk factors that could slow down global economic growth that could indirectly slow down local economic growth, thereby warranting monetary easing measures to boost economic growth as a policy priority,” Mr. Ricafort said in a Viber message.

He added that expectations of further cuts by the US Federal Reserve this year due to the potential economic impact of the Trump administration’s heightened trade war would also support the BSP’s easing cycle.

BSP Governor Eli M. Remolona, Jr. earlier said the central bank has room for two more rate cuts this year amid moderating inflation and weak economic growth.

The Monetary Board on June 19 delivered a second straight 25-bp reduction to bring the policy rate to 5.25%. It has now lowered benchmark interest rates by a cumulative 125 bps since it started its easing cycle in August last year.

Philippine headline picked up to 1.4% in June from 1.3% in May. Still, this was slower than the 3.7% clip in the same month last year. June also marked the fourth straight month that inflation settled below the BSP’s 2-4% annual target.

For the first six months, the consumer price index averaged 1.8%, slightly higher than the central bank’s baseline forecast of 1.6%.

Meanwhile, Fed Chair Jerome H. Powell has said he expects US inflation to increase this summer as a result of tariffs, which is seen keeping the US central bank on hold until later in the year, Reuters reported.

US President Donald J. Trump on Monday renewed his attacks on Mr. Powell, saying interest rates should be at 1% or lower, rather than the 4.25% to 4.5% range the Fed has kept the key rate at so far this year.

Fed funds futures traders have been pricing in about 50 bps of interest rate cuts by yearend, with the first quarter-point reduction seen as likely in September.

The BTr wants to raise PHP 250 billion from the domestic market this month, or PHP 125 billion through Treasury bills and P125 billion via T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at PHP 1.56 trillion or 5.5% of gross domestic product this year. — A.M.C. Sy with Reuters

30 manufacturing projects in the works

The Board of Investments (BoI) said that it is currently evaluating applications for 30 manufacturing projects which have a total cost of PHP 33.54 billion.

BoI Investment Policy and Planning Service Director Sandra Marie S. Recolizado said the application forms and supporting documents for the 30 manufacturing projects have already been filed with the BoI.

“So, the projects really have the intention to apply if they are already in the checklisting phase,” she said in a Viber message.

During the “checklisting” phase, the BoI assesses the completeness of information in the application forms and supporting documents that have been submitted.

Data from the BoI as of July 14 showed that it is currently evaluating the 30 projects under the manufacturing industry. The projects are expected to generate 1,668 jobs.

From January to June, the BoI has already approved 14 manufacturing projects that have a combined project cost of PHP 26.63 billion, reflecting a 165.08% increase from the PHP 10.05 billion worth of manufacturing projects it approved in the same period last year.

The 14 manufacturing projects approved in the first half are expected to generate 5,725 jobs.

“The sustained rise in industrial production, coupled with increasing investor confidence, is laying the groundwork for significant employment opportunities for Filipinos,” said Trade Secretary and BoI Chairperson Ma. Cristina A. Roque in a statement on Monday.

Citing data from the Philippine Statistics Authority, the BoI said that the Philippine manufacturing sector’s output grew by 4.9% in May, signaling “robust economic activity and boosting job opportunities.”

“The surge in manufacturing output in the Philippines shows how we are taking advantage of opportunities to serve growing markets and, importantly, to provide jobs and income for our people,” said Ms. Roque.

Year on year, manufacturing output, measured by the volume of production index, climbed to 4.9% in May, faster than 4.2% in the same month last year and 4.3% in April.

It was also the quickest growth in 10 months, or since the 7.2% in July 2024.

“The growth in May was primarily driven by a 15.7% jump in the food products subsector, which accelerated from its 11.2% rise in April,” the BoI said.

“The manufacture of transport equipment also provided a major boost, with output increasing by 13.5%, nearly doubling the 7.4% growth recorded in the previous month,” it added.

The agency also noted the S&P Global Philippines Manufacturing Purchasing Managers’ Index improved to 50.7 in June from 50.1 in May.

“This positive outlook on the manufacturing sector is a catalyst for the country’s economic growth and more job opportunities for Filipinos. When factories produce more, they need to hire more workers,” said Ms. Roque.

Meanwhile, Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said that he expects US President Donald J. Trump’s reciprocal tariffs to dampen exports, thereby also slowing down investments.

“As some investments are export-oriented, uncertainties in exporter sales, inventories, and capacity would slow down new investments until uncertainties ease,” said Mr. Ricafort.

However, he said this could be offset by the Philippines’ largely consumer-driven economy, where consumer spending accounts for 75%.

He said that the country’s favorable demographics and fast-growing economy make it a compelling destination for foreign investors “as a source of more organic sales.” — Justine Irish D. Tabile, Reporter

Experts say Philippines now ‘back on the radar’ of Taiwanese firms

TAIPEI — Taiwanese companies are looking to set up shop in the Philippines as the country faces a US tariff that is lower than most of its Southeast Asian neighbors, according to analysts.

This as Taiwan expects further deepening of ties with the Philippines, a Ministry of Foreign Affairs (MoFA) official said.

“We consider the Philippines as a very important partner for freedom, for democracy, for stability in the region,” MoFA Deputy Minister Francois Chichung Wu told visiting foreign journalists here last week.

Taiwan is also trying to work with the Philippines on “high-level projects,” he added.

The Philippines is emerging as a “top priority” for Taiwan in the region amid heightened tensions with China and uncertainty over the US tariffs, an analyst said.

Kristy Hsu, director of the Chung-Hua Institution for Economic Research’s (CIER) Taiwan ASEAN Studies Center, said the Taiwanese firms are taking notice of the Philippines because it currently faces one of the lowest US reciprocal tariffs in the region.

“I would say that Philippines right now is back on the radar (of Taiwanese firms),” she told visiting foreign journalists here last week.

US President Donald J. Trump last week announced it was raising the tariff on most Philippine goods entering the US to 20% from 17% previously. However, this is still lower than the 32% tariff that the US is looking to impose on Taiwan.

“I talked to someone who has an industrial park in the Philippines, and he told me just last week that he received a lot of requests from Taiwanese companies that have operations in Vietnam and other countries. They are very interested to probably open an office or open warehouses in the Philippines,” Ms. Hsu said.

While these Taiwanese firms are unlikely to close existing operations in Vietnam and China, there is a possibility that these firms will seek to de-risk their supply chains by expanding into other countries like the Philippines.

“Taiwanese companies will adjust their structure and probably they are seeing that the Philippines has its benefits, and they will start to allocate small part of their capacity to Philippines, depending on further policy development,” Ms. Hsu said.

A foreign affairs analyst noted that Taiwanese businesses are now figuring out a new route for their supply chains amid the US tariff uncertainty.

Shin-Horng Chen, research fellow and vice-president of CIER’s second research division, said it is difficult to predict what will happen with US tariffs because Mr. Trump is “changeable.”

“We used to think that when Taiwan was charged with high reciprocal tariffs, we may be able to mobilize our resources in Southeast Asia, even in Mexico, in the United States, to reduce certain impacts. But now quite a few Southeast Asian countries are facing high tariffs than expected,” Mr. Chen said at a separate briefing last week.

The US will impose a 20% tariff on Vietnamese exports, alongside a 40% duty on goods that are considered to have been transshipped.

Other Southeast Asian countries are also facing higher tariffs on goods sent to the US such as Laos (40%), Myanmar (40%), Cambodia (36%), Thailand (36%), Indonesia (32%), Malaysia (25%) and Brunei (25%).

Ms. Hsu said the US tariffs, once implemented on Aug. 1, will have a huge impact on the Taiwanese economy, as well as Southeast Asia.

“Everyone expected that Trump should have lower rates for Southeast Asian countries, especially those are the destination for friendshoring under the Biden administration, but right now they are going to be hit by the tariffs,” she said.

“If the tariffs for Southeast Asian countries remain high and that will also impact Taiwan a lot because we invested a lot in supply chain. We do see a possible shift of supply chain in Southeast Asian countries. But something is certain that is Taiwanese companies used to invest hugely in China are right now, they are already diversifying their supply chain,” she added.

Luzon Economic Corridor

Meanwhile, an analyst said Taiwan could potentially join the Luzon Economic Corridor (LEC) project.

Taiwan’s government last year signaled its interest in participating in the Luzon Economic Corridor project, which is being undertaken via a trilateral commitment among the Philippines, US and Japan.

The project seeks to enhance the connectivity of Luzon’s key economic areas — Subic Bay, Clark, Metro Manila and Batangas. It is widely seen to counter China’s Belt and Road Initiative.

CIER’s Ms. Hsu said some Taiwanese firms are keen on the LEC project. “We have a lot of companies who are very interested in the Luzon Economic Corridor,” she said.

Some Taiwanese firms are also considering investments in the energy sector, she added.

“I would say that the Philippines right now is important not only because of the (lower tariff) rates but also because of its very strategic position for the US and also for Taiwan and Japan,” Ms. Hsu said.

The Philippines maintains a “One-China Policy,” but has ties with Taiwan with the Manila Economic and Cultural Office serving as a de facto embassy. — Cathy Rose A. Garcia, Editor-in-Chief

US tariffs to dampen Philippine electronics export growth

The Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) expects the 20% US tariff to dampen its optimistic projections this year.

SEIPI President Danilo C. Lachica said the group initially projected a flat growth to about USD 42.6 billion this year.

“But we have seen some upticks and that caused some optimism. In fact, personally, I thought we might hit the 2023 levels of USD 46 billion,” he said in an interview on Money Talks with Cathy Yang on One News.

“But, you know, these tariff developments have been disappointing, and that might temper our optimistic projections,” he added.

Despite the challenges, Mr. Lachica said he still expects a modest increase compared to the earlier export projection of USD 42.6 billion.

“Well, I’m an optimist, so I hope we’ll see some modest increase in that, but that remains to be seen. We’ll just pray for it and hope for successful negotiations,” he added.

Last week, US President Donald J. Trump imposed a 20% tariff on Philippine-made goods entering the US starting Aug. 1, higher than the 17% previously announced.

The new rate is the same as the rate on Vietnam, which secured a deal with the US.

Mr. Lachica said that the 20% rate is “disappointing” considering that the reciprocal tariffs were placed to minimize the US trade deficit.

“If you look at the trade deficit of the Philippines, which is about USD 6 to USD 8 billion, it is much, much less than Vietnam’s trade surplus,” he said.

“We’re probably 20 times less, and so it was really a surprising development to see that we’ve been bumped up to 20% and Vietnam lowered to 20%. So that creates major concerns,” he added.

Mr. Lachica said the previously announced 17% tariff gave the Philippines a competitive advantage over Vietnam which had a 46% tariff.

“And now we’re at the same level. And Vietnam is one of our biggest competitors, if you will, in terms of attracting foreign direct investments and even exports,” he said.

Despite the uncertainty, Mr. Lachica said some optimism remains for electronics and semiconductors’ export growth.

“We have seen some increasing demands in the automotive and, of course, data and artificial intelligence market storage devices,” he said.

In the first five months, exports of electronic products inched up by 0.9% to USD 17.799 billion from USD 17.641 billion in the same period last year. In May alone, it grew 8% to USD 3.846 billion, up from USD 3.561 billion a year ago.

“But again, this will be tempered by the developments. [So], I am glad that, as Trade Secretary Cristina A. Roque mentioned, we will be sending a ‘renegotiate team,’ as I call it. The presence of the President will be very helpful,” said Mr. Lachica.

A Philippine delegation including Ms. Roque and Special Assistant to the President for Investment and Economic Affairs Frederick D. Go will be in Washington this week to negotiate for a lower tariff.

President Ferdinand R. Marcos, Jr. will also be heading to the US for an official visit from July 20 to 22.

Mr. Lachica said that he is hopeful that a free trade agreement (FTA) will be discussed during the negotiations.

“Because today, without any FTA, whether unilateral or bilateral, we cannot supply the federal government projects. So that is impacting our electronics manufacturing services (EMS) industry,” he said.

In particular, he said that the delegation should highlight the advantages of the Philippines, and how this benefits the US.

“For example, the business process outsourcing industry provides a lot of services to US multinationals, and in our semiconductor industry we have a lot of US multinationals here,” he said.

Mr. Lachica said he also hopes that the US will not change policies stated under Section 232 of the 1962 Trade Expansion Act of the US, which currently exempts some of the sector’s exports, including integrated circuits.

“It’s decades old, but that was the reason we still enjoy some exemptions in the semiconductor space. And I just hope that that does not change, and we just need to take advantage of that,” he said.

He also expressed hopes for the tariff discussions this week to result in lower tariffs for EMS products.

“We are at the crossroads, and part of what we need to do really is to look at the supply chain and the product mix we have in the Philippines compared to Vietnam,” he said.

“In fact, we are talking to the Department of Trade and Industry and to the American Chambers to drill down the products of semiconductors and EMS to see whether we could get leverage or position ourselves to take advantage of those differences in terms of tariff rates for the line items,” he added.

Meanwhile, Mr. Lachica said the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act is helping boost investor confidence in the Philippines.

“We’re seeing some foreign direct investments for electronics companies, but hopefully we will see an increase in that,” he said.

“In terms of inquiries, we’ve seen a lot. Interestingly enough, even the People’s Republic of China has come to the state office to investigate how they can promote investments moving out of China to the Philippines,” he added.

Room to negotiate

Meanwhile, emerging Asia, including the Philippines, are still positioned to negotiate with the US for lower tariff rates, Pantheon Macroeconomics said.

“Our baseline scenario is that the planned ‘reciprocal’ tariffs on emerging Asia (ex-China) will eventually be softened,” it said in a report on Monday.

“If Vietnam, which boasts the biggest trade surplus with the US in the region, can strike a deal, however fragile, to reduce its ‘reciprocal’ rate to 20% from the egregious 46% proposed initially, then its neighbors should be able to do so too, especially as we still see no appetite for any retaliation.”

Pantheon also noted that most of Mr. Trump’s tariff notices indicated an openness for negotiation.

For example, the Philippines’ letter said the US may consider adjusting the tariff rate if the country opens its closed trading markets and eliminates trade barriers. The tariff rates can be “modified upward or downward,” depending on the steps moving forward.

Countries like the Philippines and Indonesia are expected to not be as impacted by the levies compared to its export-oriented neighbors, Pantheon said.

“That said, among the many likely losers should be some countries that will feel less of a pinch — if any — as they barely rode the front-running wave.”

“In particular, Indonesian and Philippine exports to the US in January to May are up a relatively modest 5% against their long-term uptrend, while Singapore’s have fallen 16%, if we exclude the port city’s unsurprisingly high level of re-exports.”

The United States is the Philippines’ top destination of Philippine-made goods. The latest data from the local statistics authority showed that 15.3% of exports went to the US in May.

“In the long run, we continue to believe that the broad contours of President Trump’s global tariff salvoes probably will improve the export manufacturing prospects of emerging market Asia — at China’s expense — as the region is being given a trade tax advantage it didn’t have just a few months ago,” it added.

Pantheon cited US Secretary of State Marco Rubio’s comments to the press last week, where he noted that many Southeast Asian economies are likely going to have tariffs “better than countries in other parts of the world.”

On the other hand, the tariff uncertainty is more likely to affect export-heavy economies through “near-term investment paralysis.”

“Looking further down the line in this half of 2025, a sharp correction in exports is looking increasingly inevitable, even if the US’ final reciprocal tariffs are rolled back substantially, as the front-loading in shipments enjoyed through the first half naturally unwinds.” — Justine Irish D. Tabile and Luisa Maria Jacinta C. Jocson

PSEi jumps to 2-month high on bargain hunting

Philippine stocks bounced back on Monday to snap a two-day losing streak as investors picked up bargains as they await developments on the country’s tariff negotiations with the United States.

The Philippine Stock Exchange index (PSEi) jumped by 1% or 65.16 points to close at 6,525.04, while the broader all shares index climbed by 0.52% or 19.83 points to 3,832.36.

This was the PSEi’s best finish in two months or since it ended at 6,551.81 on May 14.

“The local market bounced back as investors hunted for bargains following two straight days of decline,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“The market’s rise is also seen to reflect hopes that a trade deal between the Philippines and the US would be reached before Aug. 1,” he added.

US President Donald J. Trump last week increased the planned reciprocal import tariff on Philippine goods to 20% from the 17% announced in April. The Philippines is hoping to negotiate for a lower US tariff rate ahead of the Aug. 1 deadline. Trade Secretary Ma. Cristina A. Roque and other officials will return to Washington this week to hold talks on tariffs, while President Ferdinand R. Marcos, Jr. is set to visit Washington on July 20-22.

“Investors in the Philippines shrugged off the latest development regarding the tariffs of the Trump administration to close higher,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

On Saturday, Mr. Trump threatened to impose a 30% tariff on imports from the European Union (EU) and Mexico, effective Aug. 1, after weeks of negotiations with major US trading partners failed to yield comprehensive trade agreements, Reuters reported.

In response, the EU said on Sunday it would extend its suspension of countermeasures to US tariffs until early August and continue to press for a negotiated settlement.

All sectoral indices closed higher on Monday. Mining and oil increased by 2.95% or 280 points to 9,746.73; holding firms went up by 2.18% or 122.95 points to 5,744.06; property rose by 0.96% or 23.70 points to 2,476.72; services climbed by 0.33% or 7.30 points to 2,202.44; industrials went up by 0.2% or 19 points to 9,244.49; and financials edged up by 0.1% or 2.24 points to 2,240.49.

“JG Summit Holdings, Inc. was the day’s index leader, jumping 6.3% to PHP 21.95. Bloomberry Resorts Corp. was the main index laggard, falling 4.84% to PHP 4.52,” Mr. Tantiangco said.

Value turnover declined to PHP 6.5 billion on Monday with 2.3 billion shares traded from the PHP 9.45 billion with 4.4 billion issues that changed hands on Friday.

Advancers and decliners were evenly split at 97 each, while 67 names were unchanged.

Net foreign buying increased to PHP 632.24 million on Monday from PHP 62.47 million on Friday. — Revin Mikhael D. Ochave with Reuters

Real estate prospects clouded by new US tax on remittances

The US decision to impose a 1% remittance tax could serve to dampen property investing activity by overseas Filipino workers (OFWs), industry analysts said.

The remittance tax, a component of the Trump administration’s “One Big Beautiful Bill,” will crowd out any OFW funds earmarked for investing and shift priorities towards essentials, they said.

“While the percentage of remittances being allocated for real estate requirements is increasing, that additional tax will likely affect the inflow of remittances from Filipinos working abroad,” Colliers Philippines Director and Head of Research Joey Roi H. Bondoc said in an interview.

“This might affect the money being set aside for real estate purchases. The lower the remittances, the less will be spent for these discretionary purchases, especially in the luxury segment.”

Remittances could dip between USD 19.1 million and USD 148.4 million as a result of the tax, the Department of Finance estimated, describing these movements as having a “minimal” effect on the economy.

OFWs are a key segment of the property market, with many turning to real estate for investment income or to upgrade the living conditions of their families back home.

The decline in money sent home by OFWs would affect demand for the industry’s residential and retail offerings, Santos Knight Frank Associate Director Toby Miranda said in an e-mail.

“OFWs are major demand drivers of residential products, and if they were to send less money, there may be a higher risk of canceled purchases,” he said.

“Remittances from OFWs also impact the purchasing power of their families so retail demand may be impacted,” Mr. Miranda added.

Mr. Bondoc noted that Europe-based OFWs are a strong market for upscale and upper middle-income residential units, while luxury residential units are attractive to Filipinos working in Abu Dhabi.

US President Donald J. Trump on July 4 signed into law the One Big Beautiful Bill, essentially a tax bill that overhauls tax rates and spending. The 1% excise tax on all remittances represents a softening of the bill’s initial proposal to charge remittances by foreign workers 3.5%.

“Given the uncertainties in the global and domestic market, they (OFWs) might have to put these big-ticket purchases on hold, and perhaps wait a little longer before they finally acquire these residential units that they’ve been aspiring for,” Mr. Bondoc said. — Beatriz Marie D. Cruz, Reporter

Stricter gambling payment rules eyed

The Bangko Sentral ng Pilipinas (BSP) is seeking to tighten regulations on online gambling payments to prevent the misuse of financial services and implement closer monitoring over the sector.

The central bank posted a draft circular on its website which aims to establish regulations on online gambling payment services.

The proposed rules aim to “promote responsible use of digital financial services, strengthen financial consumer protection, uphold financial health, and mitigate the social and financial risks associated with online gambling.”

“Towards this end, it is imperative to ensure that digital payment services of PSPs (payment service providers) are not misused for activities that are socially harmful and detrimental to financial health,” the BSP said.

The booming gaming industry in the Philippines is now drawing heightened scrutiny amid concerns over rising addiction and financial problems among Filipinos.

The Department of Finance has proposed a tax on online gaming, as well as other possible measures to crimp the public’s access to digital gambling platforms, such as imposing limits on paying time or cash-in.

Under the BSP’s proposed circular, these regulations could cover PSPs engaged in these services as well as operators of a payment system (OPSs) serving as payment acquirer or aggregator of the online gambling operator.

It aims to establish standards and expectations for PSPs in the provision of online gambling payment services and set the enhanced know-your-customer measures to uphold applicable legal prohibitions on access to and participation in online gambling, it said.

Under the draft rules, PSPs and OPSs engaging or intending to engage in online gambling payment services must secure prior authority from the central bank.

They must also maintain a minimum capitalization of PHP 300 million and a composite rating not lower than three based on the BSP Supervisory Assessment Framework.

PSPs and OPSs must also have strong anti-money laundering and counter-terrorism financing (AML/CTF) risk management; robust fraud management system and a board-level committee on AML/CTF compliance.

No links

The central bank also wants to prohibit payment providers from including links to online gambling platforms.

“PSPs that offer or facilitate online gambling payment services shall not be allowed to provide links to online gambling websites or otherwise provide any functionality that will redirect a user to an online gambling operator’s platform,” it added.

For enhanced monitoring, the draft rules also require PSPs to provide a facility for the creation of a separate online gambling transaction account (OGTA) for eligible account holders.

The OGTA refers to the “specific transaction account that shall be created upon the instance of the eligible account owner in order to participate in online gambling.”

Eligible account owners can only have one OGTA, which is also only funded with transfers from the same bank or institution.

PSPs must also ensure mandatory facial biometric verification for account opening and periodic facial biometric re-verifications to mitigate fraud.

The payment service providers should also strictly monitor the transactions to and from the OGTA, in accordance with anti-money laundering risk management policies.

For example, transfer of funds to the OGTA will be subject to a daily limit that should not exceed 20% of the average daily balance of the eligible owner’s transaction account. Incoming fund transfers beyond the said limit must be rejected by the PSP.

“PSPs concerned shall set a transaction window within which online gambling payment services could be offered, and such transaction window should not exceed six hours per day,” it said.

“In cases of heavy usage of the online gambling payment service, as defined by the PSP concerned, a 24-hour cooling off period shall be implemented, such that the next transfer can only be made after the lapse of said period.”

When a user creates an OGTA, all lending options in the same digital platform shall also be disabled, it added.

The BSP also said PSPs and OPSs must employ prudent acceptance criteria and procedures for the onboarding and monitoring of online gambling operators.

“PSPs and OPSs concerned shall only engage with online gambling operators that are in good standing and compliant with government registration, permit and other related requirements,” it added.

Online gambling operators are considered “high-risk merchants,” the BSP said, which would require enhanced due diligence from PSPs and OPSs.

Apart from conducting beneficial ownership verification, PSPs and OPSs must also “understand, evaluate, analyze, and periodically assess the overall potential risk of an online gambling operator.”

Responsible gambling

Under the proposed rules, PSPs must also develop a Responsible Online Gambling Policy to “promote responsible gambling and enable account owners to exercise self-control and prevent gambling addiction.”

Under this policy, mandatory or periodic pop-up alerts will be determined for account owners depending on their usage.

“PSPs concerned must prominently display notices within their digital platforms informing users of available responsible gambling tools, OGTA limitations, and access to support resources.”

“PSPs concerned may also develop other programs and initiatives to promote responsible gaming and aid in deterring possible compulsive or irresponsible gambling behavior,” it added.

Under the rules, employees of PSPs and OPSs are also prohibited from engaging in gambling and any form of online gambling activities.

Violations of these rules would lead to sanctions or monetary penalties. Penalties are not to exceed PHP 100,000 per calendar day for violations of continuing nature or a maximum penalty of PHP 1,000,000 for each transactional violation.

Non-monetary sanctions include the suspension of the authority to offer online gambling payment services for a first offense. For a second offense, this would lead to the revocation of authority to offer said services as well as the suspension of authority to settle through the payment and settlements system.

“The supervising department of the Bangko Sentral shall determine whether there is noncompliance and shall inform the PSP of such noncompliance.”

“Once notified of such non-compliance, the PSP shall immediately cease its online gambling payment services until full compliance has been achieved by the PSP,” it added. — Luisa Maria Jacinta C. Jocson

Philippines ready for tariff talks with US this week

The Philippine government is hopeful that it can still negotiate for a lower US tariff rate ahead of the Aug. 1 deadline as President Ferdinand R. Marcos, Jr. heads to the US next week.

At the same time, analysts said the Philippines may consider increasing import quotas for US pork, poultry and corn during negotiations.

“Actually, with the 20%, we are still lower than the neighboring countries. It is not something that we expected, but we are still at the negotiating table,” said Trade Secretary Ma. Cristina A. Roque in a July 11 interview that will be aired on Thought Leaders with Cathy Yang on One News on July 17.

“It is hard for us to speculate at this time. We cannot give any information yet because there’s really nothing yet until we get to talk to our counterparts,” she added.

Ms. Roque and other trade officials will return to Washington this week to hold further negotiations on tariffs. Mr. Marcos is scheduled to visit Washington from July 20 to 22.

This after US President Donald J. Trump hiked the planned tariff on Philippine goods to 20% from the 17% previously announced in April.

“Having the president there is always something positive and something that we can really look forward to… We still have to wait and see how everything will unfold,” Ms. Roque said.

Asked if the Philippine government is still targeting zero tariff, Ms. Roque said it is difficult to discuss ahead of this week’s negotiations.

“Our team is really fighting for all our exporters, and we really hope to get the job done.”

Ms. Roque said, “everything is on the negotiating table,” including a free trade agreement (FTA) with the US.

“Any FTA is always good for the country, especially because it would really encourage and strengthen the trade between the US and the Philippines,” she said.

Higher quotas

Former Tariff Commissioner George N. Manzano said the US may ask the Philippines to raise quota allocations for pork and poultry imports.

“We will have to open. We have to buy more from the US. The US will ask us to give them a higher quota allocation to pork and poultry imports,” he told BusinessWorld via phone interview over the weekend.

As of April, the latest data from the Department of Agriculture showed the country imported a total of 14.03 million kilos of pork from the US. The Philippines also imported 43.36 million kilos of chicken, 18,544 kilos of duck and 29,088 kilos of turkey.

Pork imports under the minimum access volume allocation system enjoy a lower tariff of 15% compared to the regular rate of 25%.

Mr. Manzano said the Trump administration may also require more access to the Philippines’ pharmaceutical market.

If negotiations are successful, the US tariff on Philippine goods may go down to 10%, which would be the best case.

However, he said Mr. Marcos should also ensure that semiconductors, which are one of the country’s top export products, will be spared from Mr. Trump’s tariff threats.

Mr. Trump has said he will announce tariffs on semiconductors soon.

Calixto V. Chikiamco, president of the Foundation for Economic Freedom, urged the government to abolish quotas and tariffs on US goods, arguing that they benefit criminal syndicates and inflate food prices.

“For example, why impose a quota on US corn and slap them with 50% tariffs if they are out quota? Let US corn come in here at minimal tariff to lower the price of chicken and pork,” Mr. Chikiamco said in a Viber message.

Meanwhile, John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said Mr. Marcos should prioritize tariff relief for key exports like electronics, garments, and agri-based goods.

“Just as important is making the case that the Philippine is a reliable US partner in critical supply chains like semiconductors and clean energy where trade cooperation should be strengthened, not penalized,” he said in a Viber message.

Mr. Rivera urges Mr. Marcos to push for clearer, rules-based trade treatment to restore investor confidence and avoid future shocks.

Meanwhile, Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., pointed out that “reciprocity” is crucial to secure a lower tariff from the US.

“We need to take advantage of US agriculture. Particularly, wheat and soybeans. Which are used primarily on feeds. If we are able to import cheaper this will help his food security,” Mr. Ravelas said in a Viber message.

‘Downside surprise’

The US imposing a 20% tariff on Philippine exports seen as a “downside surprise,” given expectations of a trade deal between the two countries amid a small bilateral trade deficit, MUFG Global Markets Research said in a report on July 11.

“The 20% headline tariff rate for the Philippines is still lower relative to the rate announced for other countries including Thailand, Indonesia and Malaysia, although now at the same rate as Vietnam,” the bank said.

MUFG said the Philippines’ exports of value-added to the US is “quite small” at just 1.3% of gross domestic product (GDP) for the goods sector, and 4% of GDP if services are included.

“Even if the Philippines offers import meaningful tariff cuts to the US in upcoming negotiations, the competition with domestic industry may be relatively limited,” MUFG Global Markets said.

For her part, Philippine Institute for Development Studies Emeritus Research Fellow Rafaelita M. Aldaba said if the US maintains the 20% tariff on the Philippines, this could result in heightened competitive pressures from Vietnam.

“Prior to the tariff increase from 17% to 20%, the Philippines effectively leveraged its relatively high exemption coverage and comparatively lower tariff rate to attract investments diverted from businesses seeking tariff-safe production sites,” she said in a Viber message.

“However, with both the Philippines and Vietnam now facing an identical 20% tariff, investors will closely scrutinize other critical determinants such as infrastructure quality, cost structure, industrial ecosystem depth, workforce skills, and governance efficiency,” she added.

Ms. Aldaba said that it will be a challenge for the Philippines to compete, as Vietnam already operates at a significant scale in sectors experiencing relocation and supply-chain shifts.

“Philippine exporters will encounter heightened competitive pressures from Vietnam, potentially constraining export growth, industrial expansion, and job creation,” she said.

“Given the country’s relatively modest export base and limited industrial depth, it will be challenging for the Philippines to swiftly capitalize on trade-diversion opportunities arising from global supply-chain realignments,” she added.

However, Ms. Aldaba said that the 20% is not the “worst-case scenario” and can still be mitigated through proactive policy measures.

“To successfully capture trade-diversion opportunities and bolster economic resilience, the Philippines must adopt aggressive strategies aimed at export diversification and value upgrading,” she said.

In particular, she said that the country must make targeted investments in logistics and infrastructure, industrial depth expansion, and workforce skilling.

“The extent to which the tariff increase becomes a severe economic setback or remains a manageable challenge depends significantly on how swiftly and decisively the Philippines implements targeted structural reforms and industry-specific strategies,” she added. — Justine Irish D. Tabile and Aubrey Rose A. Inosante, Reporters

PSE hikes 2025 capital raising target to over PHP 186B

The Philippine Stock Exchange, Inc. (PSE) once again raised its target for capital raising this year, as the stock market operator now expects the amount to reach over PHP 186 billion.

PSE President and Chief Executive Officer (CEO) Ramon S. Monzon said in a virtual briefing on Saturday that the local bourse is projected to raise PHP 186.3 billion in capital this year, with PHP 123.7 billion expected in the second half.

“For the first half of the year, our capital raising was about PHP 62.6 billion, that’s one initial public offering (IPO), two follow-on offerings (FOO), and about six private placements,” he said.

“For the second half, based on the applications we’ve received to date, we expect an additional capital-raising activity of about PHP 123.7 billion, composed of two IPOs, two FOOs, one stock rights offering, and one listing of convertible warrants,” he added.

This is the second time the PSE hiked its capital-raising target. In May, Mr. Monzon raised the target to PHP 170 billion from the initial target of PHP 120 billion.

In 2024, the PSE raised PHP 82.4 billion in capital, down by 42% from the PHP 140.95 billion raised in 2023.

Mr. Monzon said the PSE is awaiting the IPO of Pangilinan-led water provider Maynilad Water Services, Inc. and Hann Holdings, Inc., the operator of Hann Resorts in Pampanga.

“For the IPOs, we have two filings with us that we’ve actually processed already, the filing of Maynilad, and we are now processing the filing of Hann Resorts,” he said.

“Other than those two, we don’t have any filings yet. Although I hear talks of some underwriters or investment bankers that they have one or two that they’re working on at the moment. But they have not filed any applications,” he added.

The PSE has only seen one IPO this year so far, with the listing of Cebu-based fuel retailer Top Line Business Development Corp. in April.

Despite headwinds such as US tariff uncertainty and geopolitical tensions, Mr. Monzon said companies have to find the right time to conduct capital-raising activities.

“Locally, our listed companies, the earnings are really very consistent and very exceptional. It’s just a question of time. We’re not operating in a vacuum. We react to global markets,” he said.

“We know the headwinds we’re facing. We have this Trump tariff issue, we have this Middle East issue, the attack of Israel and Iran that could be a potential threat to global oil supplies,” he added.

Doable target

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that the PSE’s latest capital-raising target is achievable as market conditions are improving.

“It is possible given better market conditions in the US, global, and local stock markets that would allow issuers of shares to raise funds at a higher price and get more proceeds,” he said.

On Friday, the bellwether PSE index (PSEi) fell by 0.05% or 3.32 points to 6,459.88, while the broader all shares index went up by 0.002% or 0.07 point to 3,812.53.

The PSEi climbed to the 6,500 level for the first time in nearly two months on July 9, when it rose by 1.1% to 6,504.34.

“The target is doable given the current and expected pipeline of equity deals. I think there’s a chance of additional deals that could even help the PSE exceed its target, assuming they are all completed within the year,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

Meanwhile, the PSE board of directors was reinstated during the market operator’s annual stockholders’ meeting on July 12.

Mr. Monzon was re-elected as president and CEO, while Jose T. Pardo was re-elected as chairman to lead the 15-member PSE board.

“The fresh mandate given to the PSE board will ensure continuity in the reforms and initiatives we have started pursuing to attract more listings and introduce new products and services that will enhance liquidity in the capital market,” Mr. Pardo said.

“The board will remain steadfast in providing guidance and oversight in establishing clear policies and direction for the exchange, including the integration of the PSE and the Philippine Dealing System Holdings Corp., which offers significant opportunities for the development of the local capital market,” he added.

Also re-elected as PSE independent directors were retired Chief Justice Teresita Leonardo De Castro, Peter B. Favila, Andrew Jerome T. Gan, and Vicente L. Panlilio.

Re-elected as broker directors were Diosdado M. Arroyo, Eddie T. Gobing, Anthony M. Te, Wilson L. Sy, and Ma. Vivian Yuchengco.

In addition, sectoral directors were also re-elected, namely, Marilyn Victorio-Aquino (representing issuers), Ferdinand K. Constantino and Jose Arnulfo A. Veloso (representing investors), and Edgardo G. Lacson (representing other market participants).

The 15-member PSE board consists of one president-director, not more than five broker directors, at least five independent directors, and at least four directors representing the interests of issuers, investors, and other market participants. — Revin Mikhael D. Ochave, Reporter

Diversified trade ties urged in face of Trump tariff letdown

The Philippines should expand its trade relations with ASEAN, China, and the European Union (EU) in response to the 20% tariff imposed by the US, regardless of the outcome of President Ferdinand R. Marcos, Jr.’s visit to Washington next week, an academic said.

Josue Raphael J. Cortez, who lectures on diplomacy at the College of St. Benilde, said the Philippines needs to prepare to trade with alternative partners if negotiations with the US falter.

The new tariff is higher than the 17% rate initially assigned to the Philippines in early April.

“Should ASEAN members fail to achieve their aim to lower the tariffs, bolstering trade ties with their neighbors would be the way to go,” he said via Messenger chat. “It is high time that the bloc members strengthen their trading with one another because trade has been stagnant for the longest time at roughly 20-30%.”

Philippine exporters are not expected to be competitive at the 20% tariff, while the narrower differential relative to export competitors also weakens the case for relocating factories here.

Ahead of the Washington meeting, Mr. Cortez said Manila must prepare fallback options if talks fail to result in a tariff rollback.

China remains the Philippines’ largest trading partner, with the US coming in third, but the territorial dispute with Beijing complicates the prospect of deeper cooperation.

“Further deepening our economic ties with it can be a boon or a bane for us,” Mr. Cortez said.

The South China Sea remains a source of friction with China, with ties between Beijing and Manila at their worst in years in the face of frequent ship-to-ship confrontations in the Philippine exclusive economic zone.

The tariff uncertainty highlights the urgency of bringing ASEAN economies deeper into their integration project.

“It is high time that ASEAN members once again strengthen trading with one another, especially if they fail to achieve their aim of lowering tariffs with external partners,” Mr. Cortez said.

President Donald J. Trump imposed fresh tariffs on key members of the 10-nation bloc, with Vietnam managing to lower its rate to 20% from 46% in April.

Mr. Cortez also pointed to the EU as a potential alternative economic partner should negotiations with the US turn sour. The EU is the Philippines’ fourth-largest trading partner and a major source of foreign direct investment.

“Given that we are aligned with it both politically and economically, it will also be a good opportunity for us to further solidify our relationship,” he added.

Successful negotiations with Washington this month would bolster Mr. Marcos’ diplomatic standing ahead of his State of the Nation Address later this month, according to Mr. Cortez.

“It will not simply show how influential he is as the chief architect of Philippine foreign policy. It may also reflect his regime’s commitment to international norms and standards,” he said.

A successful negotiation with Washington may signal that Manila is a viable partner for open markets, willing to adjust and adapt to changing times, he noted.

“Despite nuanced views, with some arguing that we are heavily reliant on Washington, we still ascertain as a country that should we find something debilitating to our interests, we will not hesitate to utilize all the possible means for us to renegotiate something for ourselves,” he added.

According to a Reuters report last week, Foreign Affairs Secretary Ma. Theresa P. Lazaro confirmed the first meeting between the two presidents.

Ms. Lazaro told Reuters the fresh tariffs will be discussed, among others, with a Philippine delegation bound for Washington this week to negotiate.

A White House official earlier told Reuters the meeting was set for July 22. Philippine officials have announced the dates for the Marcos visit as July 20-22.

The US goods trade deficit with the Philippines widened to USD 4.9 billion in 2024, a 21.8% increase from 2023. — Chloe Mari A. Hufana, Reporter

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