Archives: Business World Article

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

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

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

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

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

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

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

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

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

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

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

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

Side hustles on the rise

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The hidden costs

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Seven-month period

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The national government’s (NG) outstanding debt ballooned to a record PHP 17.56 trillion at the end of July, breaching its full-year projection for 2025, data from the Bureau of the Treasury (BTr) showed.

The latest data from the BTr showed outstanding debt surged by 11.9% from PHP 15.69 trillion in July 2024.

This was already 1.15% higher than the PHP 17.36-trillion projected debt by end-2025.

Despite surpassing the 2025 projection, the Treasury said the debt stock is expected to decline by yearend as the government pays off PHP 814.2 billion in domestic bonds by December and as “fundraising activities wind down.”

Month on month, NG debt inched up by 1.7% from PHP 17.27 trillion in June, the BTr said.

NG debt is the total amount owed by the Philippine government to creditors such as international financial institutions, development partner-countries, banks, global bondholders and other investors.

“To mitigate exposure to foreign exchange risk, the government continued to favor domestic borrowings to deepen the local capital market, attaining a financing blend comprised of 76% domestic financing and 24% external borrowing in the first seven months of the year,” the Treasury said.

“As a result, the domestic component of the debt stock improved to 68.9% at the end of July from 68.1% at the end of 2024.”

Domestic borrowings increased by 12.6% to PHP 12.11 trillion as of end-July from PHP 10.75 trillion in the same month last year.

This was already 0.52% higher than the PHP 12.04-trillion year-end domestic debt projection.

Month on month, domestic borrowings slightly went up by 1.3% from PHP 11.95 trillion at end-June.

Domestic borrowings were made up mostly of government securities.

On the other hand, external debt rose by 10.5% to PHP 5.46 trillion as of end-July from PHP 4.94 trillion a year ago. This also exceeded the PHP 5.32-trillion external debt projection this year by 2.63%.

Month on month, external debt inched up by 2.6% from PHP 5.32 trillion at end-June.

Foreign debt was composed mainly of PHP 2.79 trillion in global bonds and PHP 2.67 trillion in loans.

External debt securities were made up of PHP 2.37 trillion in US dollar bonds, PHP 252.46 billion in euro bonds, PHP 58.5 billion in Japanese yen bonds, PHP 58.19 billion in Islamic certificates and PHP 54.77 billion in peso global bonds.

As of end-July, the NG-guaranteed obligations rose by 2.4% to PHP 352.97 billion from PHP 344.79 billion a year ago.

Month on month, it also edged higher by 2.3% from the end-June level of PHP 345.11 billion.

“The Marcos, Jr. administration remains steadfast in its commitment to prudent debt management by leveraging strong investor confidence in peso-denominated securities while ensuring that borrowings are at the lowest possible cost and support fiscal sustainability, inclusive growth, and a stronger Philippine economy,” the Treasury said.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said debt rose as the government ramped up borrowings to plug the widening budget gap.

From January-to-July period, the fiscal deficit widened by 22.04% to PHP 784.4 billion amid faster state disbursements. This was on track to hit the revised PHP 1.56-trillion full-year deficit ceiling, the BTr said.

“(The debt) could possibly breach above PHP 18 trillion by end-2025 at the rate of the year-to-date increase if not curbed through narrower budget deficits in the coming months,” Mr. Ricafort said.

However, he noted that this could be partially offset by the settlement of large maturing NG obligations, particularly in August and September.

“This (rising debt) is concerning but not entirely unexpected given sustained borrowing needs, a weaker Philippine peso, and spending demands tied to infrastructure, subsidies, and tariff-related buffers,” Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said in a Viber message.

Mr. Rivera said it will be likely that the NG debt level will exceed the year-end projection if current trends persist, such as “modest revenue growth” and “large spending needs such as flood control, defense, and infrastructure projects.”

Earlier, the Finance department projected outstanding debt to reach PHP 19.1 trillion by 2026, rising to PHP 20.5 trillion by 2027, PHP 21.9 trillion by 2028, and PHP 23.4 trillion by 2029. By 2030, outstanding debt is expected to reach PHP 24.7 trillion.

At the end of the second quarter, NG debt as a share of gross domestic product surged to 63.1%, the highest since 2005. This is above the 60% debt-to-GDP threshold considered by multilateral lenders to be manageable for developing economies. 

The DoF expects the debt-to-GDP ratio to ease to 61.3% by end-2025 and eventually fall to 58% by 2030. — Aubrey Rose A. Inosante

Thirty business groups on Thursday strongly condemned the continuing and excessive graft and corruption by government officials, calling for jail time for these corrupt individuals.

The business groups, led by the Philippine Chamber of Commerce and Industry (PCCI) and the Management Association of the Philippines (MAP), issued a strongly worded statement calling for the end to corruption in government’s public works and other projects.

“We hereby declare our outrage, disgust, and disappointment about the acts of many of our legislators in Congress and officials in the Executive Department, primarily in the Department of Public Works and Highways (DPWH), the local government units, and the Commission on Audit (CoA), for their shameful, unabated, continuing, and excessive acts of graft and corruption,” the groups said.

While the groups welcomed President Ferdinand R. Marcos, Jr.’s callout against corrupt officials, they expressed concern that the guilty officials will continue “their merry way of robbing the people and filling their pockets, completely oblivious to the fact that they are betraying the public trust (and) committing a treasonous act against our people.”

The business groups said a thorough investigation should be conducted by an independent body, with the aim of prosecuting these officials, putting them in jail and recovering the stolen funds.

“Justice for the Filipino people, especially the poor, can only be achieved by successfully punishing the corrupt,” they said.

“Our call therefore is not just to ‘moderate your greed.’ Our collective call to these corrupt officials is — Please stop! Maawa naman kayo sa mga naghihirap na taong bayan (Have mercy on our suffering countrymen).”

The business groups said they will help identify “those who have been guilty in the conspiracy to steal from the people.”

They also committed to gather evidence of corruption against government officials, particularly those in the DPWH, LGUs and CoA and “their partners in crime in the private sector.”

The groups also pledged to blacklist “notorious” businessmen and contractors who work with the corrupt politicians and officials.

They also vowed to participate in and support citizen and voter education campaigns as well as to lead the signing of the Integrity Pledge, where they promise not to bribe any politician in exchange for favors.

“(We will) encourage the financial sector, particularly the banks and the Anti-Money Laundering Council (AMLC), to be one with us in bringing out the money launderers and their unexplained wealth within legal and regulatory boundaries,” they said.

Aside from the PCCI and MAP, the statement was backed by other large business groups such as the Employers Confederation of the Philippines, Federation of Philippine Industries, Financial Executives Institute of the Philippines, and the Philippine Exporters Confederation, Inc.

The other signatories included the Alliance of Women for Action towards Reform, Alyansa ng Nagkakaisang Mamamayan, Association of CPAs for Sustainability, Inc., Brotherhood of Christian Businessmen and Professionals, Cebu Business Club, Cebu Chamber of Commerce and Industry, and Cebu Leads Foundation.

The FinTech Alliance Philippines, Chamber of Commerce of the Philippine Islands, Connected Women, Filipina CEO Circle, Green EDSA Movement, Iloilo Economic Development Foundation, Inc., Institute for Solidarity in Asia, and Institute of Corporate Directors also signed the statement.

Groups such as the Justice Reform Initiative, Military and Uniformed Personnel for United Philippines, Nextgen Organization of Women Corporate Directors, People Management Association of the Philippines, Philippine Institute of CPA, Philippine Women’s Economic Network, Semiconductor and Electronics Industries in the Philippines Foundation, Inc., Shareholders’ Association of the Philippines, and Women’s Business Council Philippines have also signed.

The business groups’ joint statement comes amid the government’s ongoing probe into reported anomalies in flood control projects under the DPWH.

In his State of the Nation Address on July 28, Mr. Marcos ordered an investigation into flood control projects days after Metro Manila experienced widespread flooding due to monsoon rains.

Resignations

Meanwhile, the Department of Trade and Industry (DTI) said that the executive director of the Construction Industry Authority of the Philippines (CIAP) and two board members of the Philippine Contractors Accreditation Board (PCAB) have stepped down amid allegations that PCAB was selling contractor accreditations.

“Executive Director Herbert D.G. Matienzo resigned. He put personal reasons in his resignation letter. He resigned on Sept. 3, and I accepted his resignation on Sept. 3 as well,” DTI Secretary Ma. Cristina A. Roque told reporters on Thursday.

“But even if he resigned, he said that he will cooperate and that he will be covered by the probe,” she added.

Ms. Roque said that the people that will replace the resigned officials are already identified but are yet to be announced.

PCAB Board Members Arthur N. Escalante and Erni G. Baggao have also resigned, the Trade chief said.

“So, for Ernie Bagao, he cited personal and health reasons; for Arthur Escalante, his term has actually expired in May 2025, so he just stepped down,” she added.

Late on Wednesday, the DTI said that it will release the full list of companies facing potential license revocation once it completes its review and receives the documents from the resigned executive director.

“This review aims to uphold transparency and accountability following PCAB’s board resolution revoking the licenses of nine construction firms owned by businesswoman Cezarah Rowena C. Discaya,” the department said.

“This also reflects DTI’s commitment to ensure fair practices and protect industry integrity in government procurement and licensing,” it added.

Asked what steps the department will take amid plans of the Discayas to file an appeal, Ms. Roque said that the department will stick with PCAB’s recommendation.

“Everybody is allowed to file an appeal. But for us, we will stick to the PCAB’s recommendation. I don’t know how long the process will be, but definitely, if they file, of course, the PCAB will counter it,” she added.

Mr. Marcos said previously that about P100 billion of the total P545 billion in government funds that were allocated for flood control projects nationwide since 2022 were cornered by just 15 contractors.

“Those are being checked. Actually, we started investigating those companies that are involved last week. We will just be putting them out once we get a conclusion,” she said. — Justine Irish D. Tabile

The Department of Public Works and Highways (DPWH) has suspended the bidding of all locally funded projects for two weeks, in line with the government’s ongoing investigation into alleged irregularities in flood control projects.

“I will order today a pause to all ongoing bidding of all locally funded projects nationwide,” Public Works and Highways Secretary Vivencio “Vince” B. Dizon said at a press briefing on Wednesday.

The suspension of ongoing bidding processes will apply to all national, regional and district offices, and will only be in effect for a maximum of two weeks, Mr. Dizon said, adding this will help the agency develop and implement safeguards against so-called “ghost” projects.

He said all foreign-funded projects will continue because he is confident that foreign funding agencies are closely monitoring project implementation.

The agency’s decision is also in line with President Ferdinand R. Marcos, Jr.’s State of the Nation Address on July 28, directing the DPWH to submit a full list of projects from the past three years and ordering an investigation into flood control projects.

The department has submitted a list of over 9,000 projects completed between July 2022 and May 2025. Of these, 160 projects have undergone validation, with 15 reported as missing or unlocated, according to former DPWH Secretary Manuel M. Bonoan.

Nigel Paul C. Villarete, a senior adviser on public-private partnerships at the technical advisory group Libra Konsult, Inc., said the suspension is a welcome development especially if the aim is to prevent any more irregularities.

He said it would be better if the government just paused the awarding of these projects.

“We can already incorporate necessary checks and balances considering the lessons learned without necessarily placing setbacks on our overall infrastructure development program. Once the probe is completed, then, these may be awarded, or not, in consideration with the findings of the probe,” Mr. Villarete said.

“What can be done is to allow the continuation of these existing bidding under a heightened transparency monitoring, considering the lessons learned, but up until pre-final award only,” he added.

Rene S. Santiago, former president of the Transportation Science Society of the Philippines, said it would be best to cancel the bidding for any flood control projects under the General Appropriations Act of 2025.

On Tuesday, DPWH’s Mr. Dizon said he will need between 30 and 60 days to reorganize the agency, after seeking courtesy resignations from all DPWH officials to facilitate an investigation into corruption in big-ticket flood control projects.

Mr. Marcos said previously that about PHP 100 billion of the total PHP 545 billion in government funds that were allocated for flood control projects nationwide since 2022 were cornered by just 15 contractors.

Among the top 15 flood-control contractors earlier identified by Mr. Marcos were Alpha & Omega Gen. Contractor & Development Corp. and St. Timothy Construction, both reportedly linked to former Pasig mayoral candidate Cezarah Rowena C. Discaya.

Licenses revoked

Meanwhile, Philippine Contractors Accreditation Board (PCAB) has issued a resolution on Sept. 1, revoking the licenses of nine construction companies owned by Ms. Discaya that were tagged in ghost projects.

“The decision comes after Ms. Discaya’s sworn testimony during the Senate Blue Ribbon Committee Hearing on Sept. 1, 2025, where she admitted ownership and control of the nine firms and their participation in government project bidding,” PCAB said.

Trade Secretary Ma. Cristina A. Roque, who is also the chairperson of the Construction Industry Association of the Philippines (CIAP), placed CIAP and its implementing boards and PCAB under her supervision.

Directly supervising CIAP and PCAB will ensure order and transparency within the agencies, Ms. Roque said.

The other contractors that were identified behind ghost projects are Legacy Construction Corp.; EGB Construction Corp.; Topnotch Catalyst Builders, Inc.; Centerways Construction and Development, Inc.; Sunwest, Inc.; Hi-Tone Construction & Development Corp.; Triple 8 Construction & Supply, Inc.; Royal Crown Monarch Construction & Supplies Corp.; Wawao Builders; MG Samidan Construction; L.R. Tiqui Builders, Inc.; and Road Edge Trading & Development Services.

With this, the DPWH had requested the Department of Justice (DoJ), and the Bureau of Immigration for a lookout order against the officials of the contractors and executives of DPWH.

Mr. Dizon said among the individuals they had requested to be included in an immigration lookout bulletin order are Henry C. Alcantara, former DPWH Bulacan First District Engineer; Brice Ericson D. Hernandez, officer-in-charge, office of the Assistant District Engineer in Bulacan; Ms. Discaya and Pacifico F. Discaya of Alpha & Omega; Edgar S. Acosta, president of Hi-Tone Construction and Development; and Mark Allan V. Arevalo, general manager of Wawao Builders.

Review of DPWH budget

Meanwhile, the President has directed Mr. Dizon and Budget Secretary Amenah F. Pangandaman to conduct a “sweeping review” and “make the necessary corrections” in the proposed 2026 budget of the DPWH, Palace Press Officer Clarissa A. Castro said at a press briefing.

“The President emphasized that the review must lead to necessary changes to guarantee transparency, accountability, and the proper use of the people’s money,” Ms. Castro told reporters in Malacañang.

Ms. Castro said any insertions or duplications in the DPWH’s proposed budget should be immediately corrected to ensure budget deliberations stay on track.

“The President does not want this review to drag on. It must be fast and thorough,” Ms. Castro said.

The review could lead to the reduction of the DPWH’s proposed budget if projects are found to be duplicates or already completed, she said.

In a press conference late on Wednesday, Mr. Dizon said the DPWH budget review will take around two weeks. — Ashley Erika O. Jose, Reporter with Erika Mae P. Sinaking