DOE upbeat on new power projects coming on line till Q1

THE Department of Energy (DOE) is expecting new power projects, with a combined capacity of 1,200 megawatts (MW), that will come on line up to the first quarter of 2026.

‘We are expecting some other projects that may be commissioned by the first quarter of 2026.In fact, after our meeting yesterday, this expectation for the first quarter of 2026 has already increased. The identified capacity is up to around 1,200 megawatts,’ DOE Undersecretary Mario Marasigan said during the hearing of the Senate Committee on Energy on Wednesday.

For the remaining months of the year, the agency is expecting the commercial operations of 11 renewable energy (RE) power projects and one battery energy storage system (BESS). He did not identify the project proponents but these are developers of solar, geothermal, hydro, and biomass energy technologies.

In the first quarter of next year, Marasigan said more solar projects are expected to be switched on.

‘The expected projects to be operational by first quarter of 2026 will increase with an aggregate capacity of about 1,200 MW,’ Marasigan said when sought for clarification.

These new power projects are part of the committed capacity cited during the 2025 state of the nation address. Back then, President Ferdinand Marcos Jr. said over 12,000 MW of new capacity are expected to come on line in the next few years. ‘In response to the directive of the President, we immediately convened our committees through a special order wherein concerned units and staff and personnel were assigned to monitor keenly, outside of the regular monitoring, some projects that are committed up to 2028, while we focus on projects that may be completed by 2026,’ Marasigan said.

Some of these committed projects were already operational as of October 3. Based on data presented to the committee, there are seven power projects, with a combined capacity of 923.58 MW, and five battery energy storage system (BESS) with 130MW capacity, that are already up and running.

‘We have monitored 900 megawatt capacity already in place and operational,’ the DOE official added.

Committed projects are those that are in the pipeline since these already underwent financial closing and contracted engineering procurement and consultancy services.

The DOE said project proponents normally encounter delays in the execution of their committed projects because of the lack of interconnection and transmission facilities, among others. Marasigan said the agency is in constant communication with other relevant agencies and the private sector to address these challenges.

‘We are also continuously coordinating the monitoring of these projects with the project developers themselves, just like what we did yesterday afternoon.

If we have concerns with the Department of Agrarian Reform or the Department of Agriculture regarding the right of way, we immediately coordinate with them.

Also, the DOE monitoring team continuously conducts actual inspection of these projects to ensure that it is not just on paper that is being validated, but also in the actual inspection of these projects,’ Marasigan said.

Clarification on EVs

Meanwhile, the agency clarified a recent advisory from the Philippine National Police-Highway Patrol Group (PNP-HPG) concerning electric vehicles (EVs).

Based on the advisory, EV owners are being required to secure a certification from the DOE as a prerequisite for the number coding exemption implemented along EDSA and other major thoroughfares in Metro Manila.

Section 25(a)(2) of Republic Act No. 11697, also known as the Electric Vehicle Industry Development Act (EVIDA), provides an exemption from the mandatory unified vehicular volume reduction program or number coding implemented by the Metropolitan Manila Development Authority (MMDA) and other relevant agencies. This exemption is valid for eight years from the Act’s implementation and applies to all EVs.

To support the implementation of non-fiscal incentives under EVIDA, including the number coding exemption, the DOE issued Department Circular No. DC2023-05-0012, as amended by DC2025-09-0015, known as the Electric Vehicle Recognition Guidelines.

The DOE circular establishes the process for recognizing and classifying EVs, such as Battery Electric Vehicles (BEVs), Hybrid Electric Vehicles (HEVs), Plug-in Hybrid Electric Vehicles (PHEVs), and Light Electric Vehicles (LEVs). The DOE maintains a list of recognized EV models on the EV Industry Portal.

Therefore, there is no need to secure a certification from the DOE since the agency has already recognized which EV models are covered by its guidelines.

‘The DOE remains committed to the effective and harmonized implementation of the EVIDA Law and continues to collaborate with partner agencies, including the LTO, MMDA, PNP-HPG, DILG, and LGUs, to promote the country’s transition toward sustainable and low-emission mobility,’ it said.

Aviation leaders: Unified approach badly needed

GOVERNMENT and industry leaders on Wednesday called for a unified approach to developing the Philippine aviation sector, emphasizing that coordinated infrastructure, regulatory, and technology investments are essential to capitalize on Asia Pacific’s projected aviation boom.

Speaking at the 2025 Philippine Aviation Summit, stakeholders emphasized the need for a strategy that recognizes aviation as a vital part of the economy, as it boosts trade, tourism, and mobility across the country.

‘A strong and growing economy like the Philippines requires a stronger and growing aviation industry as well,’ Board of Investments (BOI) Industry Development Services Executive Director Corazon Dichosa said. ‘Aviation is not just about connectivity-it’s about survival, opportunities, and prosperity.’

Aviation currently supports 1.9 million jobs in the Philippines, contributes $20.3 billion to the economy, and accounts for 4.6 percent of GDP. Passenger traffic, which reached 53 million in 2023, is expected to climb to 66 million by 2028.

Department of Transportation (DOTr) Undersecretary for Aviation and Airports Jim Sydiongco reported that the agency has completed 68 airport development projects since President Ferdinand Marcos Jr. took office, with five finished this year alone.

According to Sydiongco, the pipeline includes 11 major airport projects, ranging from terminal expansions in Laoag and Kalibo to entirely new facilities in Bulacan, Dumaguete, and Zamboanga.

The centerpiece is the P735-billion New Manila International Airport in Bulacan, set to begin construction in January 2026 with its first phase targeting completion by June 2028.

Other investments include a P17-billion airport in Dumaguete co-financed by Korea Eximbank, and a P15.15-billion project in Busuanga designed to handle jet operations by late 2028.

‘As we address transport infrastructure bottlenecks and gaps, we’re consistent with President Marcos’ outlook for the aviation sector by investing in mobility and connectivity across the archipelago,’ said Sydiongco.

Likewise, the government is also beefing up the pipeline of public-private partnership (PPP) projects, headlined by the modernization of the Ninoy Aquino International Airport (Naia) and supported by the bundling of regional airports.

Sydiongco said the International Finance Corp. (IFC) is now working on bundling the Davao, Dumaguete, and Siargao airport deals into one, while the Asian Development Bank (ADB) is preparing the bundled deal for the Laoag, Bicol, Busuanga, Bacolod, Tacloban, and General Santos airports.

Meanwhile, the International Air Transport Association (Iata) sees the Philippines as well-positioned to capture a slice of Asia’s aviation boom, with the region on track to triple passenger numbers by 2043.

Iata Philippines Country Manager Samuel David said the initiatives to capitalize on this expected growth should revolve around five priorities: infrastructure, safety and operations, sustainability, advocacy, and digital transformation.

‘We think that growth will continue and will not fall back,’ David noted.

For his part, Philippine Airlines President Richard Nuttall called for the creation of a National Aviation Infrastructure Blueprint that would guide long-term planning and maximize the country’s potential as a regional hub.

He argued that effective hub operations depend less on geography than on economics and sustainability-driving better aircraft utilization, stronger network connectivity, and broader access to global markets.

‘We would like to see a national aviation infrastructure blueprint,’ Nuttall said.

Such a plan, he added, would enable more efficient scheduling, improved route profitability, and ensure that ‘more parts of the Philippines are connected to the world.’

The Philippines already has structural advantages with Dichosa listing them as: the country’s young, English-speaking workforce; strategic location in Southeast Asia; and liberalized investment rules that allow full foreign ownership of airlines and airports.

The Create More Act, she added, sweetens the deal with tax holidays, enhanced deductions, and duty exemptions for qualified investors.

CLSU nears 2026 target for pest-mapping project

CENTRAL Luzon State University (CLSU) is closing in on its 2026 completion target for a drone-based monitoring project that maps pest and disease outbreaks in corn and onion farms.

Under the Pest D-Tech Project, researchers use aerial imagery to detect early signs of crop stress before infestations spread.

The system relies on Normalized Difference Vegetation Index (NDVI) mapping, a method that gauges plant health by measuring how leaves reflect light, to spot areas showing irregular growth or damage.

Data is gathered through unmanned aerial vehicles (UAVs) equipped with multispectral sensors, which capture detailed snapshots of farmlands.

These images are processed using Quantum Geographic Information System (QGIS) software, which translates them into color-coded maps highlighting zones that may require pest control or further inspection.

Led by Gella Patria Abella, head of the Institute for Climate Change and Environmental Management, and Elaida Fiegalan, the team has completed two infestation maps covering selected municipalities in Tarlac and Nueva Ecija.

These serve as guides for local agricultural officers, cooperatives and farmers in planning targeted interventions.

Launched in April 2023, the P10-million initiative runs until March 2026. It is jointly implemented with National Taiwan University (NTU) under Dr. Ping-Lang Yen, through the Department of Science and Technology (DOST) and Taipei Economic and Cultural Office (TECO) Joint Research Program, with oversight from PCAARRD.

In its next phase, CLSU plans to integrate data from Taiwan’s unmanned ground vehicles (UGVs) with the Philippines’ drone imagery to enhance accuracy and build a more comprehensive pest-monitoring system.

’CURATED SPACES’ | Where inspired living meets smart investment

Discover style, substance, and opportunity at the ‘Curated Spaces: Home and Lifestyle Fair’.

From October 8 to 12, this five-day showcase by the Villar Group brings together the best in design, innovation, and modern living at The Courtyard, Evia Lifestyle Center.

More than just a home fair, the event is an invitation to experience the art of living well and the promise of investing wisely across the group’s premium residential brands namely Brittany, Crown Asia, and Villar City-each known for creating communities that define elevated living.

Here, the promise of living well is expressed through the elegant craftsmanship of Brittany’s enclaves like Elara in Villar City; Deux Maison in Crosswinds, Tagaytay City; and Pievana in Sto. Tomas, Batangas. It’s also evident in the modern vitality of Crown Asia’s residential developments in Villar City including Siena, Trieste, and Novus Prime Residences.

Live beautifully, invest brilliantly

Together, these developments form a portrait of distinction that appeals to homebuyers and investors who see beyond the aesthetic, recognizing the value of a home that grows with time and taste.

Curated Spaces brings that beautiful vision to life, enabling guests to experience how thoughtful design and sound investment can coexist.

Inside the fair, every brand partner has been chosen to reflect the same spirit of discernment that defines Villar Group’s communities.

The timeless sophistication of Mercedes-Benz and the free-spirited power of Harley-Davidson capture the refinement and independence of those who choose Brittany and Crown Asia. Fitness brands like Decathlon, Paceline Indoor Cycling, and FS Multiply, a distributor of golf simulators, bring vitality and momentum to a life lived in balance. Meanwhile, the craftsmanship of Fashion Interiors and AllHome reflects the artistry behind every well-appointed home, as Gratia Manila’s finely crafted local bags lend a distinctive touch of Filipino creativity.

The Brittany Hotel Villar City completes the experience-proof that hospitality is good business made personal. Alongside it, sister brands Botanica Salon and Spa and Kinder City add the right mix of pampering and play to the lifestyle Villar City stands for.

Fairgoers can look forward to exciting on-the-spot promos and exclusive discounts from participating brands-as well as from Brittany, Crown Asia, and Villar City-making it the perfect opportunity to take that next step toward owning your dream home and living the lifestyle you’ve always envisioned.

Suburban sophistication

All of this unfolds within the dynamic setting of Evia Lifestyle Center, the Villar Group’s own symbol of modern suburban sophistication.

Its Courtyard becomes a living gallery of curated experiences with its installations. interactive zones and live weekend performances. Besides the fair, visitors can indulge in the warm comforts of Coffee Project or savor delightful treats from DC Delights.

For investors, the Home and Lifestyle Fair offers a glimpse into the future of Villar City, an emerging metropolis, where residential, retail, and leisure spaces come together to create vibrant, progressive districts.

At the same time, it’s a place to dream, be inspired, and experience how design can elevate the everyday. And for those ready to take their next step toward a home of their own, the fair sweetens the journey with exclusive promos and discounts available only during its five-day run.

Come and visit Curated Spaces: Home and Lifestyle Fair to experience what it truly means to live beautifully and invest wisely.

Topline allots funds for fuel importation, new stations

Visayas-based fuel trader and retailer Top Line Business Development Corp. on Wednesday said it is investing some P385.12 million in its fuel importation and distribution businesses.

In a disclosure, Topline said its board of directors has approved the additional investment of P185.63 million in its subsidiary-Topline Logistics and Development Corp.-through the subscription of 1.86 million common shares. It maintains its 75 percent ownership in the company.

‘The increase in capital stock. is intended to support the scale of operations expected from its import activities, in line with the issuance of its certificate of registration from the Bureau of Customs,’ Topline said.

The firm’s board also approved the additional investment of P199.5 million in Light Fuels Corp., equivalent to a subscription of 1.99 million common shares, maintaining its 99.75 percent ownership.

The increase in the authorized capital stock of Light Fuels is expected to strengthen its financial position in support of its retail network expansion program.

The company is also reclassifying 800 million of its common shares, with a par value of P0.10 apiece, into the same number of preferred shares, also with a par value of P0.10 apiece.

The reclassification, subject to the approval of the company’s shareholders and the Securities and Exchange Commission, is intended to provide Topline with flexibility in the issuance of shares.

‘The terms and conditions of the issuance of the preferred shares have yet to be finalized. The company shall inform the investing public of such terms and conditions as soon as discussed and approved by the board of directors of the company.’

Topline said it is hopeful that 2025 will be a banner year for the company as its fuel retailing business expands. It grew substantially just months after the company’s maiden offering on the Philippine Stock Exchange.

Eugene Erik Lim, Topline chairman, president and CEO, said the company expects both income and revenues to post a significant growth because of its fuel retailing business.

‘We’re hoping it can be a banner year. From three stations last year, that is, hopefully, 50 (51) stations this year. So, it’s really a banner year in terms of revenue growth or topline growth or income because of the acquisition,’ he said.

This follows after the company announced over the last two weeks that it is acquiring 38 fuel retailing stations around Visayas.

The 38 retail fuel stations were acquired from Total Oil and Gas Resources Inc. and Ballston Metro Corp. located across various areas in Cebu, Leyte, Siquijor and Negros Oriental, as well as a 2-million liter depot facility; and 15 fuel tanker trucks.

DOE to conduct special WTE auction next year

THE Department of Energy (DOE) will seek bids for 335 megawatt (MW) capacity to be generated from waste-to-energy (WTE) power facilities in January next year.

The agency said on Thursday it will conduct a special auction round specifically designed for WTE projects that will source their waste feedstock within Metro Manila and Highly Urbanized Cities (HUCs) areas, and with target completion date by the fourth quarter 2027.

Energy Undersecretary Mylene Capongocol said the 335MW capacity is an initial estimate that was based on 2024 Solid Waste Generation data of the National Solid Waste Management Commission (NSWMC), which said that Metro Manila and HUCs generate an estimated 6.12 million metric tons of municipal solid waste, equivalent to 335 MW base load.

The notice of auction and terms of reference are scheduled for issuance within the month.

Interested parties will be given sufficient time to comply with the green energy auction (GEA) registration requirements prior to the auction proper in January next year.

In addition, the DOE announced that there will be a succeeding auction round for biomass and WTE technologies targeted by second quarter of next year which will cover biomass and WTE projects to be located all over the country.

As an emerging renewable energy technology, WTE project development is one of the country’s strategies to address solid waste management, serve as flood control mitigation, and provide additional clean energy.

This initiative is aligned with the objectives of the Philippine Energy Plan (PEP) and the government’s renewable energy targets of 35 percent in the energy mix by 2030 and 50 percent by 2040.

‘The integration of WTE projects into the GEA framework underscores the DOE’s commitment to ensuring energy security, environmental protection, and private sector participation in the country’s transitioning to clean and sustainable energy,’ the agency said.

House bill bars public officials, kin, businesses from government contracts

IN a move to strengthen ethical governance and eliminate conflict of interest in public service, a lawmaker has filed a bill barring public officers and their relatives, and affiliated businesses from government contracts.

Agusan del Norte Rep. Dale B. Corvera has filed House Bill 5222, titled ‘An Act Prohibiting Public Officers and Their Relatives from Entering into Government Contracts and Providing Penalties Therefor.’

The measure seeks to categorically prohibit public officers, their relatives within the fourth degree of consanguinity or affinity, and business entities where they hold substantial shares or beneficial interests from entering into contracts with the government.

Corvera emphasized that the bill also covers individuals or entities granted licenses, franchises, permits, accreditations, or similar privileges by the government-prohibiting them from allowing any public officer, their relatives, or affiliated enterprises to exploit such privileges for personal or business gain.

‘This bill is about restoring public trust and ensuring that government transactions are free from undue influence and self-dealing,’ Corvera said. ‘It draws a clear line between public duty and private interest.’

Under the measure, violators will face imprisonment of one to 10 years and a fine equivalent to 50 percent of the total value of the government transaction, contract, or deal. Convicted individuals will also be perpetually barred from holding any public office.

‘This proposed law sends a clear message: public service is a calling, not a business opportunity,’ Corvera added. ‘By barring public officers and their close relatives from profiting through government contracts, this measure ensures that those who serve do so with integrity-not for personal gain.’

Corvera cited the constitutional principle that ‘a public office is a public trust,’ emphasizing that public officials and employees must embody integrity, accountability, and transparency in the performance of their duties.

The measure comes amid mounting public outrage over alleged corruption and irregularities in infrastructure projects across the country. In recent months, flood control and drainage programs in several provinces-particularly in Central Luzon-have come under scrutiny following reports of substandard works, ghost projects, and questionable bidding practices allegedly involving individuals linked to public officials.

President Marcos condemned these irregularities, revealing that nearly P100 billion worth of flood control projects-around 20 percent of the total-had been awarded to only 15 contractors.

The President described the situation as ‘shameful’ and subsequently created the Independent Commission for Infrastructure (ICI) under Executive Order 94 to investigate these anomalies and hold those involved accountable.

Corvera said these developments highlight the urgency of his measure.

While existing laws-such as Republic Act 6713 (Code of Conduct and Ethical Standards for Public Officials and Employees), Republic Act 3815 (Revised Penal Code), and Republic Act 12009 (New Government Procurement Act)-contain provisions on conflict of interest and disclosure, Corvera noted that these remain insufficient deterrents against unscrupulous practices.

‘Current mechanisms rely too heavily on self-declaration and after-the-fact accountability, creating loopholes that allow public officers to benefit indirectly through relatives, business partners, or proxies,’ he said. ‘By the time violations are discovered, public funds have already been spent, making recovery and accountability difficult.’

House Bill 5222 aims to close these gaps by clearly and directly prohibiting public officers and any person connected to them by marriage, blood, or business interest from directly or indirectly participating in any government contract or procurement activity.

The bill adopts the definition of ‘public officer’ under the Revised Penal Code-covering all elective and appointive officials, whether permanent, temporary, classified, or unclassified, who receive compensation, even nominal, from the government.

If enacted, the measure will serve as a strong deterrent against corruption and reinforce the principle that government service must be driven by public interest, not private profit.

Japan closely monitoring PHL anti-corruption probe

JAPAN is closely monitoring the Philippine government’s ongoing anti-corruption investigation into flood control projects, a senior official from the Japanese Embassy said.

Naobumi Yokota, Minister for Economic Affairs at the Japanese Embassy in Manila, said that, so far, no Japanese-funded infrastructure projects in the country have been linked to the corruption allegations.

‘Japan continuously reviews the implementation of its Official Development Assistance [ODA] in the Philippines,’ Yokota told members of the Rotary Club of Manila during a regular meeting on Thursday.

President Ferdinand Marcos Jr. earlier revealed that funds intended as the Philippine government’s counterpart for ODA projects were allegedly diverted to budget insertions backed by lawmakers for the 2025 national budget. He warned that some ODA-funded projects could be at risk of cancellation due to the lack of local counterpart funding.

Japan remains the Philippines’ top ODA donor, supporting major infrastructure initiatives such as the Metro Manila Subway and the North-South Commuter Railway.

Yokota said Japan welcomes the Philippine government’s efforts to investigate and address corruption.

He also noted that during a bilateral ministerial meeting held in September, Japan affirmed its commitment to continue supporting ODA projects in the pipeline.

‘We understand that the Philippines is working to reallocate its budget for appropriate use. This will certainly help facilitate the ODA assistance that Japan provides,’ Yokota said.

He added that, to date, Tokyo and other Japanese stakeholders have not raised any concerns regarding the corruption issues surrounding Philippine infrastructure projects.

Night owls in a sunrise industry: The hidden costs of the business process outsourcing boom

IN the early 2000s, the promise of the business process outsourcing (BPO) sector was simple: Filipinos could earn more without having the need to work in another country.

Companies based in the United States and the United Kingdom started moving their customer support and back-office operations to Manila, where English-speaking workers filled cubicles running on foreign time zones.

It was a different kind of overseas work. The contracts were offshore, but the workers stayed home. Soon, the model scaled fast.

By the mid-2000s, the Philippines was already emerging as one of the world’s call center capitals. What began as a handful of firms handling customer support for foreign clients had turned into a fast-growing industry that was reshaping the economy.

A 2006 study by the Philippine Institute for Development Studies noted that as early as 2004, the country had captured about 20 percent of the global market share in contact center services-a foothold that would later define its position in the global service economy.

The dominance is also reflected in its earnings, with its revenues climbing from $350 million in 2001 to $1.65 billion in 2004. According to the Asian Development Bank (ADB), the BPO sector accounted for just 0.075 percent of GDP in 2000, but its share had already expanded to 2.4 percent by 2005.

The industry was also generating jobs at a pace the government had never seen. The Arroyo government said that only 4,000 workers were employed in BPO in 2001. By the end of 2005, the figure soared to 163,000.

By then, the rewards were clear. Data from the BPO Industry Employees Network (BIEN) showed that average entry-level pay in 2005 ranged from P28,000 to P32,000-nearly triple the average salary of other private sector workers at the time.

The industry’s promise of higher pay and professional workspaces drew thousands of young Filipinos from all backgrounds, turning night shifts into symbols of upward mobility.

However, University of the Philippines-Diliman labor economist Virgel C. Binghay believes that the wage premium that fueled the industry’s rise has also exposed its limits.

‘The wage premium does create real mobility, but it is uneven and fragile. What we may be seeing is not sustainable upward mobility across generations, but more of a ‘holding pattern,’ Binghay told BusinessMirror.

‘Higher wages merely cover up systemic weaknesses: limited upgrading, inadequate labor protections, and the absence of equally attractive alternatives outside BPOs.’

The boom, Binghay said, was both a success story and a warning. The kind of growth that looked stable on paper but fragile up close.

Major shifts

AMONG those drawn to that promise was Alwyn, 47, not his real name, an accountancy graduate who turned to the night shift when the pay from his first jobs could no longer keep up with the needs of home.

‘The pay was low-around P7,000 a month. A friend introduced me to the call center and said the pay was higher. That was really the primary concern: higher pay. More than double, actually about 2.5 times, so I shifted from a normal organization to a night shift work,’ he recalled.

For Alwyn, it was about getting by. The promise of a stable income and a little more room to breathe was enough to leave behind the daylight routine he’d grown used to.

He joined the industry in 2002, when call centers were only starting to fill newly built towers in Ortigas and Makati. The city’s skyline was changing, and so were the rhythms of work.

‘It was really a boom. There was a premium on top of the salary, aside from the night differential. and even the break was paid.’

Back then, the graveyard shift meant something else entirely-a thin corridor of people who kept the night running: security guards pacing under shuttered establishment lights, clerks behind the counters of 24-hour stores, and sex workers trying to make a living in the streets.

But around the 2000s, the night belonged to others, too. To people like Alwyn, who learned to stay awake for a living, chasing quotas and foreign voices past midnight.

‘It’s hard at first . you have to sleep during the day, but sometimes you can’t fall asleep right away because you end up checking your phone or finding things to do,’ he said.

His shifts often ended when the sun was already up, forcing him to darken his room and block out the noise to get enough rest.

Weekends, too, became shorter. His body would still be catching up from the week’s night shifts, so Saturdays often disappeared into sleep.

By the time he felt rested enough to go out or see his family, Sunday had already arrived-and by nightfall, it was time to start another workweek.

For BPO workers, those adjustments were part of the deal. It was the hidden cost of the higher pay and the steady job that kept them home while the rest of the country slept.

Concerns

MANY say that working in the BPO industry requires a different kind of endurance-one that tests not just your English-speaking skills, but also the body’s limits.

For Alwyn, the price of that endurance became harder to ignore. Just eight years after he started working in BPO, he was already diagnosed with hypertension. The long hours, endless coffee, and constant pressure had begun to exhaust him.

‘Aside from that, your biological clock changes,’ he said. ‘Sometimes you end up sleeping in the office, and your rest isn’t a full eight hours. Either you drink coffee or make up for it with food.’

Over time, eating became both a comfort and a coping mechanism. Food runs and coffee deliveries became part of the rhythm of survival-a small relief amid the exhaustion of serving clients from another time zone.

‘It’s the easiest way to cope. That’s what managers and bosses use as an incentive, too, to keep us motivated,’ he admitted.

The experience of workers like Alwyn mirrors what global studies have long documented. A 2010 book by the International Labour Organization (ILO), titled Offshoring and Working Conditions in Remote Work, found that nearly half-or 42.6 percent-of Filipino call center agents work at night, a schedule ‘associated with occupational safety and health concerns.’

The report also linked the job to sleep disorders, fatigue, eye strain, neck, shoulder, and back pain, and even voice problems.

Beyond the physical toll, the ILO study warned of psychological strain among workers who operate under constant surveillance.

BPO employees, it noted, often face heavy workloads, rigid procedures, and electronic monitoring-conditions that limit their autonomy and create high levels of work-related stress.

That kind of pressure was familiar to Erwin Alcober, now 47, who entered the industry in 2007.

By then, he already had a young family to feed and a child about to start school.

His job at a small internet café barely paid minimum wage-just enough to keep the lights on.

‘My wife and I already had two kids by then,’ he said. ‘She actually sent my résumé to a call center without telling me . that was the best source of income at the time.’

Without a college diploma, his options were limited. But call centers were hiring people who could speak English and learn quickly.

For Erwin, the P21,000 salary was more than just a pay raise-it was stability, something his family never had before.

Still, that stability came at a cost. ‘Targets kept changing. Average handling time used to be 20 minutes, then they’d bring it down to 15. It became toxic.’

Average handling time (AHT) is one of the key performance metrics in the BPO industry. It measures how fast an agent resolves customer concerns, often down to the last second.

Every call, pause, and note entry is tracked by software. The shorter the time, the better the score.

But for workers like Erwin, every second saved on a call came at the expense of rest and health. A trade-off is built into the system itself.

The sleepless nights piled up, and so did the stress. After two years, he, too, developed hypertension.

‘The stress is different.. If you don’t meet the metrics [in AHT], they’ll coach you. The whole process wears you down,’ Erwin added.

Struggles

FOR Lean Porquia, founder of BIEN, the struggles of BPO workers also reveal a deeper neglect in workplace health and safety.

‘One of the leading illnesses among call center workers is urinary tract infection.. That’s because restroom breaks are controlled and regulated to some extent.. Breaks are plotted based on the volume of incoming calls. If there’s a high call volume, you’re not allowed to take a break,’ he explained to BusinessMirror.

Porquia said the system has made workers so tightly monitored that even basic bodily needs are treated as a matter of productivity. The result, he added, is a workforce that continues to deliver under conditions most people wouldn’t consider humane.

Porquia recalled that at the height of the pandemic, even visibly sick agents were told not to go home.

‘There was a time when an agent was already complaining about not feeling well. The team leader told the agent, ‘Don’t go home, just sleep here,” he said. ‘Later, the agent suddenly collapsed and, unfortunately, died. The company covered it up.’

Health hazards, he added, extend beyond infection control.

‘It’s very common in call centers to share headsets,’ he said. ‘Whatever headset was used by the previous agent, that’s the same one you’ll use. So, what if that person had pneumonia or tuberculosis? You’ll end up getting their illness too.’

He said these problems persist because the industry’s occupational safety and health system remains largely self-regulated, with companies given leeway to stage-manage compliance.

Under the current framework of the Philippine Economic Zone Authority (Peza), companies operating inside ecozones-including many BPO firms-enjoy wide administrative autonomy. Porquia said this setup has made labor inspections ‘limited and largely procedural,’ instead of random and independent.

The result, he added, is an illusion of compliance where workers appear protected on paper, but continue to face unsafe and unhealthy conditions in practice.

Fragile climb

THE personal anecdotes of BPO workers echo a deeper pattern in what was once called a sunrise industry.

Binghay explained that while the BPO sector still offers relatively higher wages, its early advantage has faded over time.

‘BPO wages are still competitive relative to the wider Philippine labor market, but the advantage has weakened significantly,’ he said. ‘What was once a strong draw is now a thinner cushion, and unless reinforced by better job quality, stronger protections, and career pathways, the sector risks losing its attractiveness to the next generation of workers.’

Data from BIEN showed that as employment in the sector grew, entry-level pay steadily declined.

From an average of P28,000 to P32,000 in 2005, starting salaries dropped to P18,000 to P30,000 by 2010, and further to P15,000 to P30,000 in 2015.

By 2020, new hires were earning between P13,000 and P28,000-a roughly 32 percent decrease over 15 years, even if record employment and export revenues were achieved by the industry.

Binghay said this drop shows that wages are no longer the main reason Filipinos choose or remain in BPO jobs. The post-pandemic landscape, he added, has also reshaped worker motivations.

‘Post-pandemic and amid rapid tech change, workers are also seeking security, wellbeing, purpose, and digital empowerment-things that sometimes weigh even more when it comes to retention,’ he said.

Binghay also cautioned that the industry’s current model remains ‘fragile’ unless it adapts to the changing needs of its workforce.

Higher wages, he said, can only go so far when health risks and job insecurity persist.

‘The gaps lie in the lack of sector-specific [occupational safety and health] standards, very rigid scheduling, inadequate preventive care, weak enforcement, and limited worker voice. Unless these are addressed, the industry risks trading short-term wage gains for pangmatagalang [long-term] worker health costs-a cycle that undermines both productivity and retention.’

The sharp decline in starting pay, according to Porquia, also reflects how the Philippines is slowly losing its cost advantage to emerging competitors.

He explained that as technology advances, what once set Filipino BPO workers apart-especially their ability to speak with a clear, neutral accent-no longer guarantees an edge in the global market.

Porquia pointed to a new software called Sanas, which can neutralize a person’s accent in real time.

‘So, if you have someone with a very pronounced, strong accent, like many Indians, it can modify that so that when you hear them on the other end of the line, it sounds like you’re talking to an American with a natural, neutral accent. That will change the market because of that,’ he said.

‘Right now, India dominates the non-voice sector. With this technology, they can take over voice accounts, too. And when that happens, foreign investors may start to pressure Philippine companies to lower wages even further to stay competitive.’

Impact of automation

EVEN before technologies like Sanas entered the market, BPO workers had already begun to feel the pressure of automation.

A 2016 study by the ILO found that nearly 89 percent of Filipino workers in the outsourcing sector were at risk of automation.

The report presented the danger stemmed largely from ‘software automation,’ in which algorithms perform routine and repetitive tasks such as data entry, ticket processing, and customer response routing-functions that make up the bulk of call center and back-office work.

The ILO warned that unless the sector diversified into higher-value services, technology would eventually erode its labor advantage.

Almost a decade later, that early warning has become more urgent.

A 2025 working paper by the International Monetary Fund (IMF) identified the Philippine BPO industry as among the most at risk from artificial intelligence (AI).

The IMF said the industry’s focus on routine, rule-based roles-such as handling customer calls and processing transactions-makes it especially vulnerable to large-scale disruptions.

Overall, the IMF study found that about one-third of all jobs in the Philippines are highly exposed to AI.

Of these, 61 percent are in occupations where AI could complement human work by improving productivity. Meanwhile, 14 percent of the total workforce holds low-complementarity jobs that are far more likely to be displaced.

Among those highly exposed with low complementarity are customer service representatives, telemarketers, accountants, auditors, and administrative clerks-many of whom make up the country’s BPO workforce.

In contrast, roles such as managers, teachers, lawyers, and engineers fall under high exposure but high complementarity, where AI can enhance, but not replace, human judgment.

For Binghay, these findings underscore an urgent need for foresight.

‘Yes, there is a real risk of displacement. But that doesn’t mean job loss is inevitable. With retraining, just-transition policies, and a shift toward higher-value services, the BPO industry can evolve rather than collapse under AI pressure,’ he said.

Jun M. Roy, chairman of the Philippine Society for Talent Development (PSTD), agreed that AI will change how work is done-but not what makes workers indispensable.

‘I don’t think empathy in terms of answering or responding to calls can be replaced; the friendliness, I don’t think it can be substituted by AI.That’s something unique, uniquely human, that still cannot be copied by an AI,’ he told BusinessMirror.

Beyond empathy, he stressed that leadership remains the strongest defense against automation.

‘Leadership skills are very much essential and critical. You don’t look at AI leading a team of humans. Wisdom is also still needed,’ Roy said.

In 2024, the IT and Business Process Association of the Philippines (IBPAP) reported the sector closed the year with 1.82 million jobs and $38 billion in revenue.

IBPAP expects the sector to sustain its growth trajectory, projecting its workforce to reach 2.5 million and revenues to expand to $59 billion by 2028.

Closing the gap

WHILE new technology threatens to upend the industry, Asian Institute of Management economist Jamil Paolo S. Francisco said the deeper challenge lies in human capital.

The long-term competitiveness of the BPO sector, he explained, depends not only on keeping pace with technology but also on improving what he called the country’s ‘human capital infrastructure.’

‘Even more important than physical infrastructure is the human capital infrastructure, the education,’ Francisco said. ‘And that is really the only way we can ensure that our IT-BPO sector will be competitive in the future, and also how we can achieve prosperity.’

He said that although the outsourcing sector continues to fuel growth, the benefits remain concentrated in major cities where education and digital resources are stronger.

Outside Metro Manila, Cebu, and Davao, workers face fewer opportunities to enter or move up in the industry.

‘If there’s no development outside that IT-BPO sector, how can we have the shared prosperity and trickle-down effect that we’re talking about? So, it all boils down again to education,’ Francisco said.

That uneven access, said University of the Philippines Diliman visiting professor and economist Maria Reinaruth D. Carlos, also reveals a deeper kind of skills mismatch.

‘Evidently, there is de-skilling. You study other courses-say, nursing-and then end up working in a call center or the BPO industry,’ Carlos said.

She noted that while the industry has absorbed many college graduates, it has also created a cycle where workers are overqualified for entry-level positions yet face few chances for advancement.

‘With that kind of work, there’s no real career progression. that’s the problem,’ Carlos said.

Francisco added that unless the Philippines strengthens its human capital base, even this form of employment may become less secure.

The stagnation in education quality, he warned, is already eroding the very advantage that once defined Filipino labor.

He emphasized that reforms must be systemic-stretching from basic education to specialized, technical, and managerial training that can prepare Filipinos for a digital economy.

‘We need one big push. from basic to specialized, vocational, technical training, to managerial skills.’

INTERCONNECTION THRU SUBSEA ENERGY CABLES

Major stakeholders gathered to discuss opportunities and tackle issues on subsea power transmission lines in the region at the workshop on ‘Enabling Subsea Interconnectors in Asean’ from October 7 to 9. Organized by the National Transmission Corporation or TransCo, President and CEO Fortunato C. Leynes P.E.E. (right) remarked that the initiatives are ‘technologically complex and challenging, but will be transformative for Southeast Asia.’ With him are Dr. Kirill Artyukhov of the Australia Mission to Asean (left) and Nadhila Shani of the Asean Centre for Energy. ZOE CRUZADA/TRANSCO