BTr says it’s unlikely to issue more global bonds this year

MILAN, Italy — The Philippine government is not likely to issue another global bond this year as it has almost completed its program for foreign borrowings, the Bureau of the Treasury (BTr) said.

On the sidelines of the 58^th ADB Annual Meeting, National Treasurer Sharon P. Almanza told reporters they do not expect to launch any more sizable offshore bond issuances for the remainder of the year.

“Probably not. We were able to raise almost USD 3.2 billion already, we’re almost done. Almost done for the year,” she said in mixed English and Filipino.

In January, the National Government (NG) raised USD 3.29 billion from its sale of US dollar and euro bonds, its first global bond offer for the year.

The NG’s commercial borrowing program is pegged at USD 3.5 billion this year.

This year’s overall financing program is set at PHP 2.55 trillion, of which 20% or about PHP 500 billion will come from foreign sources.

Asked if they will issue bonds to meet the target, Ms. Almanza said “it depends” but said they are not looking at any more substantial bond offers like a Sukuk or a retail bond issuance.

Meanwhile, the Treasury is also seeking to include more of its recently launched fixed-rate Treasury notes (FXTN).

“We really want to have benchmark size ones. And one way to build size is through book building. It’s kind of like a retail treasury bond (RTB) but not exactly, in the sense that it’s an FXTN,” she said.

“Because for RTB, we cannot do a reissuance. RTB is just one time. Now, we’re shifting. We will still have RTB but maybe the size will not be the same as before. Maybe smaller,” she added.

In April, the government sold P300 billion worth of FXTN, which was 10 times the initial PHP 30-billion offering.

Ms. Almanza said the FXTN notes will now be added to the lineup of the BTr’s bond issuances.

“Because the intention is to have more benchmark bonds. That’s what the investors want. They want big weight because right now we have so many ISINs (International Securities Identification Numbers).”

“Now, if we’re able to convert most of our issuances to bigger size, it’s better because there is liquidity, and the volume dictates liquidity,” she added.

While the government is seeking to further reduce foreign currency exposure in its overall borrowings, Ms. Almanza said the current 80:20 mix is at a good level.

“It’s a function of liquidity. If all of that is domestic, potentially rates may go up and then, we will crowd out investment… Even if you want to source 90% (domestic), our deficit is so big. If our deficit is only PHP 1 trillion, we could possibly do 90:10,” she said.

“In 2019, the deficit was so small, so the requirements were small as well. We were only borrowing less than PHP 1 trillion in domestic. Now, we’re borrowing PHP 2 trillion.”

The NG’s deficit ceiling is capped at PHP 1.54 trillion or 5.3% of economic output this year.

Ms. Almanza noted the importance of local currency conversion.

“It’s very important because we will be able to manage our FX (foreign exchange) exposure even if we cannot source majority or at least we cannot source 80% from our local market.”

“Right now, our market is very liquid. We are confident that liquidity is sufficient so that we will be able to raise substantial funding from the market. But what if there will come a time that liquidity will dry up? Maybe it still makes sense to borrow abroad.”

Bond index

Meanwhile, Ms. Almanza said that efforts to re-enter JPMorgan Chase & Co.’s emerging market government bond index are still underway.

“They said most countries are able to get in the index, on average, around three years,” she said, noting they began the process in 2023.

She said participation by nonresidents in the market has been very small.

“I think the highest that we have is about less than 8%, that’s way back in 2008, during the peak of the Global Financial Crisis,” she added.

JPMorgan is scheduled to have a consultation survey in May and June, with the results likely out by October.

“They will start to have that survey and meet individual investors and hopefully they will be able to convince each of them,” Ms. Almanza said.

“They will tell the investors the updates, all these initiatives that we’re doing and hopefully, the investors are also able to really feel that somehow the liquidity has improved because we’ve seen participation starting this year.”

She noted that in the FXTN offer, more than 10% of the participants were foreign investors.

The BTr has been working on measures to encourage foreign participation, Ms. Almanza said.

‘There are several issues that we’re trying to address, one of which is liquidity. That’s one concern of nonresident investors.”

For example, the Treasury has been working on the consolidation of its issuances.

The Treasury is also working to enhance transparency and predictability in its issuances, she added.

JPMorgan’s Government Bond Index-Emerging Markets (GBI-EM) tracks the performance of sovereign and quasi-sovereign bonds issued by emerging market countries. The country’s inclusion will need to be approved by a certain percentage of investors reviewing the index.

The Philippines’ global peso notes were removed from the GBI-EM in January last year due to illiquidity. – Luisa Maria Jacinta C. Jocson, Senior Reporter

DoF: Philippines’ vulnerability warrants more financial support

MILAN, Italy — The Philippines will still need financing assistance due to its exposure to shocks like climate risks and even as it graduates to upper middle-income status, the Department of Finance (DoF) said, urging the Asian Development Bank (ADB) to continue expanding its support to the country.

“As we carry this partnership forward, we call on the bank to further deepen its commitment to our development agenda, and towards addressing global challenges,” Finance Undersecretary Joven Z. Balbosa said during the Governors’ Business Session at the 58^th ADB Annual Meeting here on Monday.

Mr. Balbosa delivered the speech for the Philippines as temporary alternate governor, as Finance Secretary Ralph G. Recto, who sits on the ADB Board of Governors, was unable to attend.

“Even as the Philippines progresses towards becoming an upper middle-income country, we remain among those most vulnerable to the impacts of climate change, and we urgently require sustained support from our development partners for a united and cohesive response,” he said.

The Philippines is currently classified as a lower middle-income economy, based on the latest World Bank data. The Marcos administration is targeting to achieve upper middle-income status by 2026.

The Department of Economy, Planning, and Development (DEPDev) earlier said that the transition to a higher income level will entail a “shift in access to resources.”

The Philippines’ eligibility for concessional financing and access to traditional official development assistance (ODA) would diminish upon reaching the upper middle-income threshold.

In 2024, the Philippines was the second-biggest recipient of ADB financial assistance with $6.02 billion, just after India ($7.26 billion).

The latest data from DEPDev showed that the total active ODA in the country reached $37.29 billion as of December 2023, higher by 15% from 2022.

Meanwhile, Mr. Balbosa also called on the ADB to “ensure availability and concessionality of financing for climate resilience.”

The Philippines remains the most at-risk country globally for 16 straight years, according to the latest edition of the World Risk Index.

Earlier data from the ADB also showed that the Philippines could potentially lose 18.1% of its gross domestic product (GDP) by 2070 due to climate change under a high emissions scenario.

The ADB should also scale up its efforts to improve access to technology amid rapid digital innovation, Mr. Balbosa said.

“We trust that through ADB’s continued assistance, we can achieve a whole-of-government approach to integrate sector-specific digital solutions and initiatives with digital public infrastructure that would further contribute to our growth and fiscal targets.”

Mr. Balbosa also highlighted the Philippines’ massive infrastructure spending needs.

“We likewise look forward to the bank’s continued support in terms of financing, as well as strengthening institutional capacity, recognizing that by investing in infrastructure, we do not only provide essential services and improve connectivity, but also spur employment opportunities.”

The government is targeting to spend 5-6% of GDP on infrastructure annually.

Mr. Balbosa also pushed for the ADB to “continue collaborating with other international finance institutions in supporting vulnerable countries and finding innovative ways to finance programs and projects that contribute to global growth and development.”

“We call on the international community to deepen collaboration and urge international financial institutions like ADB to be adequately equipped and step in more decisively to support lower- and middle-income countries through timely and accessible financing, technical assistance, knowledge support, and enhanced policy dialogue.”

Mr. Balbosa also reiterated the need for economies in the region to collaborate amid the unpredictability in trade policies.

“We recognize the importance of international cooperation and multilateralism, especially in the context of a hyperglobalized world.”

He said that there is a need to “carefully consider potential unintended spillovers and spillbacks from trade measures.”

The Philippines, like the rest of Southeast Asia, was not spared by the United States’ barrage of reciprocal tariffs in early April.

The country was slapped with a 17% reciprocal tariff, though this was suspended until July, save for the 10% baseline which remains in effect.

“In terms of trade, we see the need to further strengthen regional cooperation and tap new and emerging trade partners as a means to unlock growth opportunities,” Mr. Balbosa said.

“We remain committed to an open and rules-based trading system, and in preserving the integrity of regional and global value chains,” he added. – Luisa Maria Jacinta C. Jocson, Senior Reporter

Green investments in Philippines slide in 2024

The Philippines’ private investments in green projects declined in 2024 as higher investments in solar and wind energy projects were offset by the drop in waste management and green cement projects.

Private green investments in the Philippines went down by 12% to USD 1.28 billion in 2024 from USD 1.46 billion in the previous year, according to the 2025 Southeast Asia’s Green Economy report by Bain & Company, GenZero, Standard Chartered and Temasek.

Investments in solar and wind energy projects surged 1.5 times and six times, respectively, the report showed.

However, these were offset by the reductions in investments in the waste management and green cement sectors.

The Philippines accounted for 16% of the total investments in SEA-6 (Southeast Asia-6), which is composed of Thailand, Malaysia, Singapore, Indonesia, the Philippines, and Vietnam.

Green investments in SEA-6 surged by 43% year on year to USD 8 billion in 2024, with Malaysia and Singapore contributing over 60% of deals, according to the report.

Power accounted for two-thirds of green investments in the region as the size of deals increased.

Investments in solar surged by 100% while waste management deals jumped by 60% year on year.

According to the report, a systems-based approach and wider collaboration in the region could drive growth in Southeast Asia’s green economy.

“(This) could drive significant regional economic impact – with SEA-6 economies potentially reaping up to USD 120 billion in GDP (gross domestic product) growth, 900,000 new jobs, and closing up to 50% of the emissions gap by 2030,” it said.

The report defined system-level solutions as “high-impact interventions that address systemic barriers across multiple systems to deliver transformative and amplified impact.”

It said that this approach could address cross-cutting barriers; maximize return on investment, and co-benefits; and prevent “negative, unintended spillovers” across systems.

Dale Hardcastle, co-director of Bain & Company’s Global Sustainability Innovation Center, said Southeast Asia may see an acceleration in the development of the green economy as governments and companies pivot priorities.

“By focusing on scalable, high impact systems-level solutions, Southeast Asia can rewrite the green economy playbook and turn current challenges into opportunities. The need now is to drive two key outcomes in parallel — significant emissions reduction and sustained economic growth — ensuring that the region not only meets its climate goals but also builds long-term resilience and prosperity,” he said.

While corporations in most of the six Southeast Asian countries show progress in setting targets and establishing roadmaps, there is a significant gap in green investments.

“With just five years to 2030, our window for action to avoid the worst effects of climate change is rapidly closing. We need to increase the momentum and focus on pragmatic solutions with near-term impact,” said Franziska Zimmermann, managing director for sustainability at Temasek.

“Stakeholders in this region have an opportunity to drive transformative, systems-level change that can balance energy security, sustainability, and economic growth,” she added.

The report noted the progress made in the Philippines in terms of infrastructure and technology brought by improved grid interconnectedness and electric vehicle (EV) charging stations.

There are 912 publicly accessible charging stations operational as of March 31, according to the Department of Energy.

Under the Comprehensive Roadmap for the Electric Vehicle Industry, the Philippines targets to deploy 7,300 EV charging stations by 2028.

The report said national energy plans such as the National Renewable Energy Program (NREP) and Clean Energy Finance and Investment Roadmap offer clearer direction for renewables and financing.

Under the NREP, the Philippines seeks to significantly increase the share of renewable energy in the country’s power generation mix to 35% by 2030 and 50% by 2040. — S.J.Talavera

Stocks rebound as inflation sharply slows in April

Philippine stocks rebounded on Tuesday as headline inflation slowed to an over five-year low in April, paving the way for further monetary easing.

The bellwether Philippine Stock Exchange index (PSEi) climbed by 0.92% or 59.06 points to end at 6,418.69, while the broader all shares index increased by 0.72% or 26.86 points to 3,746.12.

“The local market bounced back as investors cheered the Philippines’ April inflation rate which came in at 1.4%, lower than the preceding month’s 1.8%,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “The low inflation figure is seen to give the Bangko Sentral ng Pilipinas (BSP) more room to ease their policy.”

“Philippine shares managed to resume their gains driven by the better-than-expected consumer price index (CPI) and more earnings releases,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The April CPI was the lowest since the 1.2% logged in November 2019 amid moderating oil and food prices.

This was within the 1.3% to 2.1% forecast of the Bangko Sentral ng Pilipinas for the month and well below the 1.8% median estimate in a BusinessWorld poll of 14 analysts.

For the first four months, headline inflation averaged 2%, at the low end of the BSP’s 2-4% annual target.

BSP Governor Eli M. Remolona, Jr. said on Monday that cooling inflation gives the central bank “a lot of policy space.”

The Monetary Board last month resumed its easing cycle after an unexpected pause in April, cutting benchmark borrowing costs by 25 basis points (bps) to bring the policy rate to 5.5%. Its next meeting is on June 19.

Mr. Remolona earlier said they are likely to reduce rates further this year in “baby steps” of 25 bps at a time.

Almost all sectoral indices closed higher on Tuesday. Services rose by 3.52% or 69.64 points to 2,048.16; mining and oil went up by 2.62% or 248.49 points to 9,705.38; industrials increased by 0.64% or 57.96 points to 8,989.78; holding firms climbed by 0.55% or 29.50 points to 5,387.18; and property inched up by 0.05% or 1.30 points to 2,300.97.

Meanwhile, financials declined by 0.16% or 4.14 points to 2,458.45.

“Bloomberry Resorts Corp. was the top index gainer, jumping 9.97% to PHP 4.19. Semirara Mining and Power Corp. was the main index loser, dropping 1.36% to PHP 32.55,” Mr. Tantiangco said.

Value turnover increased to PHP 6.15 billion on Tuesday with 876.09 million shares traded from the PHP 5.67 billion with 699.74 million issues exchanged on Monday.

Advancers edged out decliners, 97 versus 95, while 46 names closed unchanged.

Net foreign buying stood at PHP 690.87 million on Tuesday, a turnaround from the PHP 77.41 million in net selling recorded on Monday. — Revin Mikhael D. Ochave

BSP sees ‘a lot of policy space’ as inflation cools

April inflation that’s likely to go below 2% gives the Philippine central bank “a lot of policy space,” while first-quarter growth that could be near or below the government’s 6-8% target would be an “important factor” in the Monetary Board’s policy meeting next month, according to its governor.

“I think it would be a good number,” Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. told reporters at the presidential palace on Monday, referring to last month’s inflation. “It gives us a lot of policy space. It makes our life easier.”

Inflation likely settled at 1.3% to 2.1% last month, according to BSP estimates released last week, which gives it leeway to cut benchmark interest rates further.

A BusinessWorld poll of 14 analysts last week yielded a median estimate of 1.8% for the consumer price index (CPI) in April, same as the March print.

The Philippine Statistics Authority is set to release the April inflation data on Tuesday (May 6), and preliminary first-quarter GDP data on Thursday (May 8).

Gross domestic product (GDP) growth that could be below the full-year goal of 6-8% also puts pressure on the BSP to ease monetary policy and stimulate growth.

“Growth will be an important factor [when] we decide in June,” Mr. Remolona said.

The BSP’s next policy meeting is on June 19.

The Monetary Board in April resumed its easing cycle with a 25-basis-point (bp) rate cut, bringing the key rate to 5.75%. It lowered rates by a total of 75 bps in 2024.

Philippine GDP likely expanded by 5.8% in the first quarter, according to a median forecast of 15 economists and analysts polled by BusinessWorld, picking up from the revised 5.3% in the fourth quarter of 2024.

However, it would be a tad slower than the 5.9% growth recorded in the first quarter of 2024.

“Low inflation may be a sign of better supply control, but can also reflect slowing demand, of which the latter can negatively impact growth. Rate cuts can help with driving demand higher as it makes borrowing costs cheaper, allowing credit growth,” Reinielle Matt M. Erece, an economist at Oikonomia Research and Advisory, Inc., said in a Viber message.

Mr. Erece said he understands why the BSP is “hesitant,” as heightened global uncertainty can affect inflation.

“Right now, the Fed is hawkish on policy as they weigh in on the impacts of tariffs. This may be the time for the BSP to perhaps deviate from the Fed’s moves and decide policy based on what the country needs.”

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said inflation likely eased to 1.6% year on year in April. He expects inflation to average 2.2% for the full year, well within the BSP’s 2%-4% target range.

With subdued inflation and slowing economic growth, he said the BSP is expected to continue cutting policy rates to support growth.

“Relatively benign inflation at 2% levels is already possible for most of 2025, well within and even at the lower end of the BSP’s inflation target of 2%-4%, thereby could justify/support future local policy rate cut/s that would match future Fed rate cuts in 2025,” he noted.

Filomeno S. Sta. Ana III, cofounder and coordinator of Action for Economic Reforms, said Mr. Remolona’s statement points to the further easing of monetary policy.

“Inflation is no longer a binding constraint,” he said in a Viber chat. “What should worry us is fiscal policy that has encouraged unproductive, inefficient and corruption-prone government spending, made worse by government’s rolling back of tax reforms.”

Mr. Remolona earlier signaled further rate reductions this year as the benchmark is still “slightly restrictive.” Rate cuts will likely be delivered in “baby steps” or in 25-bp increments, he said. – Chloe Mari A. Hufana, Reporter

Philippines to continue tariff talks with US

The Philippine government is optimistic that a deal on tariffs can be reached with the US, as it is set to continue negotiations for a lower tariff rate.

“The negotiation is a process. Not a one-time meeting. We believe the meeting went very well and our points were well received,” Trade Secretary Ma. Cristina A. Roque said in a statement on Monday.

Ms. Roque, Special Assistant to the President for Investment and Economic Affairs Frederick D. Go and Philippine Ambassador to the US Jose Manuel D. Romualdez met with the US Trade Representative (USTR) Jamieson Greer in Washington on May 2.

Before the trip, the Trade secretary said that the aim is to bring back the tariffs to at least the pre-“Liberation Day” level.

Last month, US President Donald J. Trump announced higher reciprocal tariffs on most of the country’s trading partners, with Philippine goods facing the second-lowest rate in Southeast Asia at 17%.

However, the reciprocal tariffs have been paused for 90 days until July. A baseline 10% tariff remains in place.

At a Palace briefing, Mr. Go said there will be more meetings with the USTR, although the Trade Undersecretary Allan B. Gepty would lead the talks.

He did not elaborate on a timeline.

Mr. Go said the meeting with the USTR focused on the local semiconductor and electronics industries since these are the top exports to the US.

Discussions also centered on the coconut, garment, furniture, food processing, and automotive industries, he added.

“The coconut industry is very important to us because it is our number one agricultural export to America,” he said in Filipino. “We brought up all the concerns and issues of our stakeholders, and as I said earlier, I believe it was very well received.”

In 2024, the US was the country’s top export market, receiving USD 12.12 billion worth of Philippine goods. The US was the Philippines’ fifth-largest source of imports accounting for USD 8.17 billion.

The Philippines’ top exports to the US are semiconductors, electronic integrated circuits, and insulated wire and other insulated electric conductors.

The country’s top imports from the US are soya beans, electronic integrated circuits, and wheat and meslin.

When asked if the USTR had committed to lowering the 17% reciprocal tariff imposed by Mr. Trump, Mr. Go said, “Let’s allow the process to take place.”

“I ask for your patience; let’s just wait for the outcome,” he added.

He refused to divulge if the US promised anything during the dialogues due to confidentiality agreements but noted it will take several negotiations to reach a favorable resolution.

The Foreign Trade Office of the DTI will now handle the negotiations with their American counterparts, he noted.

“We have to let the technical working groups work on a framework for discussions… both sides will have to work together to put a framework before the 90-day moratorium period is over,” he added.

Mr. Go noted the Philippine delegation was “well prepared” for the meeting, adding they discussed with Cabinet officials and the business sector before flying out.

Meanwhile, Department of Economy, Planning, and Development (DEPDev) Undersecretary Rosemarie G. Edillon said that the meeting with the USTR showed the Philippine government’s intention to strengthen trade relations with the US.

“We are very interested, especially in our trade relations, and to inform them of our initiatives to reduce, if not totally eliminate, what they call nontariff barriers,” she added.

Asked to comment, former Trade Undersecretary Rafaelita M. Aldaba said that the Philippines should get “as many products as possible in the exemption list.”

“In exchange we can offer zero tariffs on products that are important to the US,” she added.

In previous statements, Ms. Roque said that the Philippines might increase imports of US products, particularly soybeans and frozen meat, in exchange for lower tariffs.

According to the DTI Export Marketing Bureau, the US was the country’s third-largest trading partner last year, with total trade amounting to USD 20.29 billion.

Ateneo School of Government Dean and Economics Professor Philip Arnold P. Tuaño said that the country should also seek the reauthorization of the Generalized System of Preferences (GSP) while negotiating for lower tariffs.

“We should negotiate for lower tariffs on Philippine goods entering the United States and possibly also request the USA to reauthorize the GSP, which allows eligible developing countries to export their goods to the US tariff-free,” said Mr. Tuaño in an e-mail.

“[We should] also argue for preferential rates for strategic goods under the supply-chain resilience program, such as semiconductors and agricultural products,” he added.

While active, the Philippines was the GSP’s fifth-largest beneficiary, with about USD 1.6 billion in duty-free exports in 2020. This made up 10% of the total US GSP imports, which amounted to USD 16 billion.

The trade preference scheme eliminated duties on approximately 5,000 or 47% of the total US tariff lines. However, these benefits expired on Dec. 31, 2020. – Justine Irish D. Tabile and Chloe Mari A. Hufana, Reporters

Government unveils 10-yr. jobs masterplan

The Philippine government on Monday launched a 10-year employment masterplan, which is targeting to increase the labor force participation rate (LFPR) to 68.2% by 2034.

“This is a very ambitious plan. If you look at the targets, it’s simple, we want to raise our LFPR from 64% to 68%,” Department of Economy, Planning, and Development (DEPDev) Undersecretary Rosemarie G. Edillon told reporters on the sidelines of the launch on Monday.

“So, this is actually a big ask, especially since by 2035, the majority of the workforce will be coming from Gen Z and Gen Alpha. So, we actually need a big policy reform,” she added.

Launched by the DEPDev, the Department of Trade and Industry (DTI), and the Department of Labor and Employment, the Trabaho Para sa Bayan (TPB) Plan aims to strengthen and future-proof the country’s workforce.

Under the plan, the government set near-term and long-term initiatives aimed at addressing challenges faced by the local labor market, such as rapid digitalization, geopolitical tensions, climate change, and demographic shifts.

Ms. Edillon said that the country’s LFPR is the lowest among the Association of Southeast Asian Nation (ASEAN) countries.

“Taking out the COVID-19 (coronavirus disease 2019) years, our LFPR is about less than 65%, but for the other countries, it is actually in the high 60s. You have Vietnam over there with an LFPR in the high 70s,” she added.

Preliminary data from the Philippine Statistics Authority showed that LFPR in February was estimated at 64.5%. For the first two months, the average LFPR stood at 64.2%.

However, the new jobs masterplan did not indicate any targets on how many jobs will be created until 2034.

“The problem with having a target with respect to jobs is that it’s very difficult, especially since we are moving towards a framework for flexible work arrangements where it would be possible for you to hold more than one job,” said Ms. Edillon.

“We’re also moving towards having a framework for part-time jobs. So, it’s difficult [to see] how it will translate into the number of jobs,” she added.

Labor Secretary Bienvenido E. Laguesma said that there have been previous targets to create a million jobs.

“But this does not ensure there will be enough jobs created for the new entrants (to the labor market),” he said.

“It’s not that simple to say that we want to create one or two million jobs by a certain year. What we want to see is that every Filipino family will have a job,” he added.

The TPB Plan also set a target of decreasing the unemployment rate to 3% by 2034 from 3.8% in 2024 and the underemployment rate to 7-9% from 13.3% last year.

In addition, the masterplan also aims to increase the female LFPR to 59% by 2034, which Ms. Edillon said is the lowest in the ASEAN region.

“Ours is about 48.8%, while in Vietnam it is actually 72.5%. So can you just imagine how much more human capital we could add if we could actually increase the LFPR for women?” she added.

The TPB Plan is also targeting to improve the country’s domestic industry diversification and production, as well as export complexity.

Citing the Global Innovation Index, Ms. Edillon said that the two factors measure the level of sophistication of the economy.

“That is actually the goal, that we will be a more competitive country before 2034. So that is actually the goal of the National Innovation Agenda and Strategy Document,” she added.

The TPB Plan outlines priority strategies that aim to address labor demand, supply, and governance, as well as how to future-proof labor demand, supply, and governance.

Strategies to ensure labor demand include expansion of market access, encouraging investments in priority sectors, ensuring ease of doing business, establishment of a dynamic innovation ecosystem, and promotion of technology adoption and enterprise-based education and training.

To improve labor supply, the TPB Plan recognized the need to expand lifelong learning opportunities, upgrade the design of skills training programs, enhance overseas Filipino reintegration programs, and increase program take-up among disadvantaged sectors.

Meanwhile, the TPB also cited 18 policy recommendations, which are seen to create an “inclusive and dynamic labor market environment.”

These policies include the Konektadong Pinoy bill, the Lifelong Learning Development Bill, tax incentives for employees on a work-from-home program, the Freelancers’ Protection Act, and the Amendment of the Maternity Leave Law, among others. — Justine Irish D. Tabile

Shares drop on profit taking before inflation data

Philippine stocks ended their three-day climb on Monday as investors booked profits before the release of April inflation data.

The benchmark Philippine Stock Exchange index (PSEi) dropped by 0.81% or 52.23 points to close at 6,359.63, while the broader all shares index went down by 0.58% or 21.86 points to 3,719.26.

“Philippine shares succumbed to profit taking, pulling back to the 6,300 level, while investors wait for the latest inflation print,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The Philippine Statistics Authority is scheduled to release April consumer price index (CPI) data on May 6 (Tuesday).

A BusinessWorld poll of 14 analysts yielded a median estimate of 1.8% for the April CPI. This is within the Bangko Sentral ng Pilipinas’ (BSP) 1.3% to 2.1% forecast.

If realized, April inflation would be steady from the March print and be sharply slower than the 3.8% clip logged in the same month in 2024. This would also mark the ninth straight month that inflation settled within the BSP’s 2-4% target range.

“The PSEi corrected lower, considered a healthy profit-taking after gaining for three straight trading days, after US stock market futures declined by 0.6%-0.7% after the weaker US dollar recently weighed on sentiment,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Philippine stocks also went down ahead of the US Federal Reserve’s policy meeting this week, where it is widely expected to keep rates steady, Mr. Ricafort added.

The dollar weakened and US equity-index futures dropped, threatening to end the S&P 500 index’s longest winning streak in two decades, as uncertainty about US trade policy hung over markets, Bloomberg reported.

A gauge of the greenback declined for a second day and contracts for the S&P 500 retreated 0.7% after US President Donald J. Trump said he had no plans to talk to his Chinese counterpart this week, though he signaled trade deals with other unspecified partners could come as soon as this week.

All sectoral indices closed lower on Monday. Holding firms sank by 1.6% or 87.60 points to 5,357.68; mining and oil fell by 1.52% or 146.83 points to 9,456.89; services declined by 0.72% or 14.52 points to 1,978.52; financials went down by 0.45% or 11.17 points to 2,462.59; property decreased by 0.45% or 10.55 points to 2,299.67; and industrials dropped by 0.17% or 15.69 points to 8,931.82.

Value turnover fell to PHP 5.67 billion on Monday with 699.74 million shares traded from the PHP 6.86 billion with 706.15 million issues exchanged on Friday.

Decliners edged out advancers, 93 versus 92, while 61 names were unchanged.

Net foreign selling stood at PHP 77.41 million on Monday versus the PHP 660.33 million in net buying recorded on Friday.

Mr. Ricafort put the PSEi’s next minor support at 6,205-6,300 and minor resistance at 6,490. — Revin Mikhael D. Ochave

Government’s gross borrowings slump in March

The national government’s (NG) gross borrowings dropped in March as external debt declined, the Bureau of the Treasury (BTr) reported.

The latest data from the Treasury showed that total gross borrowings slid by 7.15% to PHP 192.45 billion in March from PHP 207.27 billion in the same month a year ago.

Month on month, gross borrowings slumped by 43.32% from PHP 339.55 billion in February.

Gross external debt stood at PHP 34.65 billion in March, down by 31.89% from PHP 50.87 billion a year ago. This consisted of PHP 28.91 billion in program loans and PHP 5.74 billion in project loans.

On the other hand, gross domestic borrowings inched up by 0.9% to PHP 157.8 billion in March from PHP 156.4 billion in the same month last year.

This consisted of PHP 132.4 billion in fixed-rate Treasury bonds and PHP 25.4 billion in Treasury bills.

Domestic debt accounted for the bulk or 82% of the total gross borrowings.

Oikonomia Advisory and Research, Inc. economist Reinielle Matt M. Erece said the global bond offering in February led to lower borrowing requirements in March.

The BTr raised USD3.3 billion or PHP 192 billion from the issuance of dollar bonds and euro-denominated sustainability bonds in late January. The bonds were settled in February.

Meanwhile, NG gross borrowings dropped by 30.61% to PHP 745.14 billion in the first quarter from PHP 1.07 trillion in the same period last year.

Domestic borrowings for the period accounted for 60.5% of the total borrowings in the January-to-March period.

Gross domestic borrowings slumped by 52.87% to PHP 450.8 billion in the three-month period from PHP 956.58 billion a year ago.

This consisted of PHP 402.4 billion in fixed-rate Treasury bonds and PHP 48.4 billion in Treasury bills.

At end-March, external gross borrowings surged by 151.02% to PHP 294.34 billion from PHP 117.26 billion in the same period in 2024, reflecting the proceeds of the global bond issuance.

This was made up of PHP 191.97 billion in global bonds, PHP 85.2 billion in program loans and P17.18 billion in new project loans.

External borrowings in the January-to-March period last year were only composed of new project loans and program loans.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the decline in gross borrowings in the first quarter to the higher base effects in the same period in 2024 which had the large retail Treasury bond (RTB) offering.

Mr. Ricafort noted the global bond issuance earlier this year could be part of the government’s strategy to frontload borrowings.

“The USD3.29-billion global bond in early 2025 could be part of hedging/borrowing amid market volatility due to Trump’s higher US import tariffs to somewhat frontload some borrowings to almost completely the USD3.5 billion programmed for 2025 as a matter of prudence, to diversify borrowing sources to finance the budget deficit,” he said via Viber message over the weekend.

The NG budget gap ballooned by an annual 91.78% to PHP 375.7 billion in March. This brought the first-quarter deficit to PHP 478.8 billion, higher by 75.62% from the PHP 272.6-billion gap in the same period a year ago.

Mr. Ricafort said the government would likely borrow more from domestic sources this year to better manage foreign exchange risks.

“Going forward there would be large maturing government securities in August and September 2025 that would lead to NG borrowings such as RTB issuance around that time,” he added.

Meanwhile, Mr. Erece anticipates an increase in gross borrowings in the coming months.

“The planned developmental and social projects may exceed the country’s fiscal space, causing the need to borrow more to finance this deficit,” he said.

The NG capped its deficit ceiling at PHP 1.54 trillion or 5.3% of gross domestic product this year.

“In addition, a ‘borrow now’ strategy may be seen as a way to maximize relatively lower rates as inflation risks may prompt major central banks such as the Fed to either hold interest rates steady or even push them higher in the long run to tame inflation if trade wars persist,” Mr. Erece said.

This year’s financing program is set at PHP 2.545 trillion, with 80% coming from local lenders and 20% from foreign sources. – Aubrey Rose A. Inosante, Reporter

Philippines struggles to keep cyberwarriors due to tech brain drain

Jericho P. Dupo, a 25-year-old full-stack developer at IBM Philippines, is looking for a job overseas, where he expects to earn more and gain more experience as a cybersecurity expert.

“The benefits, experiences and social networks that I can have access to once I start working overseas will be much greater,” the Filipino cyberwarrior, whose job involves patching up web-based software from threats and vulnerabilities, told BusinessWorld. “The pay in Manila is too low despite the high cost of living.”

Eight of 10 Filipino cyber-experts work overseas, and there are only 200 of them remaining compared with 2,000 in Singapore, former Information and Communications Technology Secretary Ivan John E. Uy has said.

Expectedly, few cybersecurity experts work in the government, whose agencies are often the target of hackers, due to the measly pay at about PHP 50,000 a month, compared with PHP 200,000 in the private sector.

Local organizations lost about USD 1 million (PHP 56.5 million) in 2023 from cyberattacks, according to Cloudflare, Inc.

In a separate report, consulting firm Frost & Sullivan said the Philippines could sustain as much as PHP 200 billion in yearly economic losses due to cybercrime.

“Low compensation, especially in government, limited career mobility and a lack of structured support systems are pushing many of our skilled experts to seek better opportunities abroad,” Ronald B. Gustilo, national campaigner for Digital Pinoys group, told BusinessWorld in a Viber message.

“Compared with our Southeast Asian neighbors, the Philippines is still lagging in both infrastructure and manpower, putting our institutions, businesses and citizens at risk,” he added.

The Philippines is likely to post a surplus of 171,960 information technology (IT) positions this year, showing a mismatch between graduate skills and industry needs, the Philippine Institute for Development Studies said in February.

Allan S. Cabanlong, regional director for Southeast Asia hub at the Global Forum on Cyber Expertise, cited the need to review and craft better performance-based salary models for cybersecurity professionals without straining public resources.

“We need innovative compensation models that are performance-based, allowing pay scales without blanket increases, and more public-private collaboration on schemes to reduce the strain on public coffers,” he said by telephone.

Financial institutions supervised by the Bangko Sentral ng Pilipinas (BSP) lost PHP 5.82 billion from cyberattacks last year, up 2.6% from a year earlier, according to BSP Deputy Governor Chuchi G. Fonacier.

The central bank under Circular No. 1019 published in 2018 requires financial institutions to submit regular and event-driven reports covering technology-related information and major cyberattacks.

“The government must also provide dedicated funding for cybersecurity covering both tools and human resources and make public sector compensation more competitive,” Mr. Gustilo said. “These efforts shouldn’t be seen as costs, but as long-term investments in national security.”

‘Not just an IT function’

The Philippines posted 17.7 million cyberthreat incidents last year, according to Kaspersky Security Network. These were fewer than 22.7 million incidents in 2023.

In a March 3 report, the Cybercrime Investigation and Coordination Center (CICC) said cybercrime complaints more than tripled last year to 10,004 from a year earlier. Victims lost almost P198 million due to these crimes.

Data from the CICC showed that consumer fraud accounted for 3,534 or 35% of the cybercrime complaints, while online fraud accounted for 3,242 or 32%.

The DICT earlier reported 282 cyberattacks against government organizations between January and March 2024, adding that 90% of these had been resolved. It added that 811 or about 76% of the early-stage hacking attempts were detected and neutralized by the agency’s National Security Operations Center.

Last year, the Philippine Health Insurance Corp. was hit by Medusa ransomware, with more than 600 gigabytes of data stolen by hackers.

“Cybersecurity is not just an IT function,” Mr. Cabanlong said. “It is now a pillar of national resilience. Investing in talent is investing in national security and digital sovereignty.”

The DICT wants Congress to pass changes to the country’s 13-year-old cybersecurity law by requiring companies to report cyberattacks. The priority bill also creates a cybersecurity regulatory body that can impose monetary and administrative penalties on erring companies that operate critical information infrastructure.

Mr. Gustilo said it is crucial for the government to boost the country’s cybersecurity infrastructure, while allotting funding for these tools as more threats arise in the future.

“To move forward, we need a more aggressive and strategic national approach,” he said. “That starts with investing in digital literacy and cybersecurity education from an early stage to build a stronger talent pipeline.”

About 84.5% of Philippine organizations experienced an average of three cybersecurity breaches last year due to gaps in third-party cyber risk management, cyber defense company BlueVoyant LLC said in a report in January.

About 65% of Filipino organizations either do not or somewhat prioritize third-party cybersecurity risk management, it said, citing a survey conducted by independent market research group Opinion Matters.

Mr. Dupo, the full-stack developer, noted that the only way to advance in his career is to work toward high turnover rates when handling issues raised with his team and participate in as many software development projects as possible.

“Many cybersecurity professionals in the Philippines lack continuous training and development opportunities,” he said. “If they don’t have these certifications, it makes it difficult for them to stay up-to-date with industry trends.” — John Victor D. Ordoñez

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