Category: Business Mirror

THE Philippine business environment could remain cautious in 2027 as weak consumer spending and limited purchasing power continue to weigh on demand, according to Management Association of the Philippines (MAP) President Donald Patrick Lim.

Lim said businesses are already looking beyond 2026, which he described as largely a ‘closed book,’ but cautioned that companies may remain hesitant to expand next year unless consumer confidence improves and geopolitical risks ease.

‘Hopefully, next year, it’s better. Let’s plan for some growth. Otherwise, it’s hard to plan,’ Lim told reporters on the sidelines of the MAP General Membership Meeting on Thursday in Makati City.

He said businesses have seen only a ‘little blip’ in revenues this year as economic activity remained sluggish, while the weaker peso has not necessarily translated into stronger domestic demand.

Weak consumer sentiment remains one of the constraints, which is reflected in the Bangko Sentral ng Pilipinas’ (BSP) Consumer Expectations Survey. It showed that the overall consumer confidence fell to -42 percent in the second quarter of 2026, the lowest level since Q4 2020.

For businesses, Lim said, the uncertainty extends beyond domestic demand. The Iran-US geopolitical crisis could still affect the 2027 outlook, particularly if it keeps adding pressure to costs and disrupts trade and supply chains.

A weaker peso could provide some relief to overseas Filipino workers through higher peso-denominated remittances, Lim said, but this does not automatically translate into stronger domestic consumption.

Yet, the expected 2028 elections could provide another source of activity, as election-related spending may begin to pick up in 2027. The MAP president, however, said the extent to which this would translate into stronger consumer spending remains uncertain.

A study by the Philippine Institute for Development Studies (PIDS) found that election periods typically generate additional economic activity through government spending, campaign expenditures, temporary jobs and higher consumer activity.

Treading carefully

WITH demand still uncertain, Lim said companies need to be careful about expanding capacity ahead of actual orders.

‘You want to expand. But if you expand, it’s wrong. You have a warehouse, you have a setup, and you don’t have a customer yet,’ he said.

He also warned against using debt-driven consumption as a way to prop up demand, citing the growing use of digital lending and buy-now-pay-later platforms alongside online shopping.

The concern comes as household borrowing continues to rise. Data from the BSP showed credit card receivables reached P1.24 trillion at end-March 2026, up 28.6 percent from P964.2 billion a year earlier.

‘I also don’t want them to be in debt,’ Lim said, although he made a distinction between ordinary spending, such as family meals and experiences, and encouraging consumers to take on excessive debt.

On the policy side, MAP remains supportive of several priority measures under the Legislative-Executive Development Advisory Council (Ledac), despite changes in the government’s current legislative agenda.

Lim cited the Anti-Political Dynasty Bill, the Party-List System Reform Act, the Citizen Access and Disclosure of Expenditures for National Accountability (Cadena) Act, and the Independent People’s Commission Act among the measures backed by the business group.

MAP also continues to identify taxation, support for micro, small and medium enterprises and electricity costs as areas that could affect business conditions and investment decisions.

US hurricane season is gearing up. And from Amanda and Boris onward, tropical cyclones’ names in the Pacific region are unfolding quickly.

But why the monikers each year? Or at all?

Humans have given names to the world around them for almost as long as language itself has existed, but formal naming practices for storms and other events of national and international importance are a relatively new phenomenon. Names of military operations (‘Operation Epic Fury’), hurricanes (Hugo, Andrew, Katrina, etc.), diseases (COVID-19) and even companies need to serve purposes other than just differentiation. They need to tell stories.

‘Look around in your home. Who or what has a name? Your family members, your pets. You may even have named certain objects of significance,’ says Shannon Murphy, CEO of Nameistry, a firm that helps companies and entrepreneurs develop their brand identities. ‘If it’s got a name, it has meaning in some way, and it’s going to come up in conversation or other types of communication.’

The World Meteorological Organization, which manages the naming of tropical storms worldwide, says assigning a moniker is ‘proven to be the fastest way to communicate warnings and raise public awareness and preparedness,’ as well as limit confusion when more than one cyclone is moving through. They can also help with research and record-keeping.

Tropical storms the world over are named on a set of pre-agreed alphabetical lists decided by five tropical cyclone regional bodies. Some of these are cyclical, returning to the same lists every few years, starting at ‘A’ with the first storm of the given year; others start a new list every year. Those covering the Atlantic region skip names beginning with Q, U, X, Y and Z because examples are difficult to find.

Until 1979, the United States used only female names, but now it alternates. For example, Amanda’s successor in the Eastern North Pacific storm region is Boris, and residents of the Caribbean Sea, Gulf of Mexico and the North Atlantic region have already seen Arthur and Bertha.

Military operation names have evolved (thanks to Churchill)

While storm names are designed to be memorable and simple, they are not necessarily trying to elicit feelings. Neither were military operation names, which functioned to maintain secrecy and to differentiate one from another until British Prime Minister Winston Churchill changed the nomenclature to suit the broader aims of the allies in World War II.

‘In the Second World War, names such as Overlord, Torch or Husky were planning code-names,’ says Ruben Stewart, senior fellow for land warfare at the International Institute for Strategic Studies. ‘Churchill’s intervention in the naming of Operation Overlord,’ Stewart said, referring to the Allied push that began with D-Day, ‘reflected a broader wartime realization that operation names mattered.’

In a 1943 memo to his wartime chief of staff discussing code words to be used during World War II, Churchill argued operation names should not imply a ‘boastful and overconfident sentiment’ or be ‘frivolous.’

The prime minister added that effort should be made to identify names that ‘do not suggest the character of the operation or disparage it in any way and do not enable some widow or mother to say that her son was killed in an operation called ‘Bunnyhug’ or ‘Ballyhoo.”

Subsequent conflicts morphed naming practices, with the US military choosing two-word operation names and the United Kingdom sticking with one. Today, British military code names are automatically generated, but US military operations remain evocative. This means joint operations can end up with different names: The military response to the 1991 Gulf War was famously dubbed ‘Operation Desert Storm’ by the U.S. military, while the British opted for ‘Operation Granby.’

Stewart says the post-Korea/Vietnam and post-Panama periods mattered for setting the tone in US military monikers, with Operation Killer during the Korean War in 1951 causing ‘obvious public-affairs problems,’ while the US invasion of Panama being ‘Operation Just Cause’ showed how an operation name could be ‘deliberately framed for legitimacy,’ he said.

Recent years have brought more colorful monikers

When the U.S. war with Iran began in February, it was dubbed Operation Epic Fury, a name President Donald Trump said he selected from a list of 20. Some have criticized the rise of more bombastic names, including immigration raids titled Catahoula Crunch in Louisiana and Operation Dirtbag in Florida-and the naming of detention facilities like Florida’s ‘Alligator Alcatraz.’

‘A name can signal purpose, reassure domestic audiences, sustain coalition legitimacy, deter adversaries and give service personnel a shorthand identity for what they are doing,’ Stewart says. ‘The best names are clear, sober, memorable, culturally safe and politically defensible.’

Getting a name’s feel or connotation wrong can have huge consequences, despite it being only a sliver of an operation. The U.S. war on terror after 9/11 was originally Operation Infinite Justice, but it was changed to Operation Enduring Freedom after concerns that US allies in the Middle East would be offended. Muslims believe only God can deliver the concept of infinite justice.

Not all names are designed to last. Twice in the last 25 years, the Atlantic weather region exhausted all the names on its annual list and had to resort to using the Greek alphabet to name storms. Now, Berg says, a supplementary list of names sits at the ready.

In the case of a particularly devastating storm, either by death toll or damage, names can be retired and replaced with new ones. Consideration is given to clarity.

‘There have been names that are hard to pronounce, and I think people try to refrain from using those because we want them to roll off the tongue pretty easily,’ said Robbie Berg, a warning coordination meteorologist with the National Hurricane Center.

The practice of naming major events is continually evolving

Infamous storms with retired names include Sandy, which struck Jamaica, Cuba and the east coast of the United States in 2012, killing 182 people; and Katrina, which struck the U.S. Gulf Coast in 2005, killing nearly 1,400. Both caused widespread property devastation. The names won’t surface again; they were replaced by Katia and Sara.

Practices also change over time. Historically, diseases and medical conditions were often named after the people who identified them or places they were identified-think of Alzheimer’s disease or Ebola-but the World Health Organization now advises against this practice.

‘There is a deliberate move away from terms like ‘swine flu’ or ‘Spanish flu,’ which underscores how powerful a name and its associations can be,’ Murphy said. ‘Once it sticks, it’s hard to unstick it.’

There is scant research into the exact impacts of naming. Andrew Charlton-Perez, a meteorologist and head of the School of Mathematical, Physical and Computational Sciences at the University of Reading, called for more studies in the field as the climate brings more frequent and extreme weather events.

‘As our climate becomes more extreme,’ he said, ‘there is always the need to think about how to better communicate to avoid harm.’

One possible alternative: crowdsourcing. In Britain and Ireland, people can submit ideas for storm names and try their hand. They might get lucky-depending on which way the wind blows.

Tommy Hilfiger unveils Tommy New York and Tommy Girl New York, two new fragrances that celebrate the bold, optimistic spirit of New York City. The new scents embody the energy and unstoppable rhythm of the place they call home-two distinct journeys fueled by the same pulse, always in motion, carving paths through a playground of endless possibility.

In a nod to NYC’s vibrant energy, Tommy New York opens with an aromatic lavender, followed by an energetic trio of spices: coriander, cardamom, and pink peppercorn, and finishes with rich notes of cedarwood, for a bold, woody trail. Bright and confident, Tommy Girl New York begins with sparkling bergamot, blended with the sweet and floral heart of rose. The scent ends by revealing notes of patchouli, leaving a radiant and rich trail.

The fragrance bottles are inspired by elevated perspectives on urban life with Tommy New York in a skyline-inspired blue and Tommy Girl New York in sundown pink, both accented with takes on the brand’s iconic flag logo. The cap retains the sleek, silver button design of the original fragrance in a timeless tribute to Tommy Hilfiger’s signature denim.

Tommy New York and Tommy Girl New York were created in collaboration with renowned perfumer Christophe Raynaud, who blended his distinctive fragrances with notes that speak to the passionate energy of New Yorkers.

Tommy Hilfiger Fragrances are exclusively distributed by Rustan Marketing Corp. and available in-store at Rustans, The SM Store, The Landmark, Metro, Royal Duty Free, and online at Rustans.com and Zalora.

The Securities and Exchange Commission (SEC) on Monday said it is moving to the next phase of its reform agenda, with measures aimed at making it easier to start businesses, raise capital and improve liquidity in the Philippine market.

SEC Chairman Francis E. Lim, who is celebrating his first year in office, said the agency has made progress in reducing regulatory friction.

‘But there are still structural barriers that prevent businesses from starting faster and companies from tapping the capital market more efficiently,’ he said. ‘Our next task is to address these barriers and build a market that is easier to access, more liquid and more competitive.’

Among the SEC’s proposals is the One Business Start Date, which will allow companies to begin commercial operations upon securing their SEC registration or other primary regulatory license while completing other government permits in parallel.

The proposal seeks to shorten the period between company registration and the actual start of business operations.

The SEC has also expanded its digital services and imposed internal processing timelines, including a deemed approved policy for applications that go beyond prescribed periods.

It reduced fees for corporate document requests by a cumulative 62.5 percent from 2023 rates, translating to around P211 million in savings as of June 2026.

The SEC is also working with the World Bank to overhaul the public offering framework by separating regulatory requirements for debt and equity securities.

The review seeks to make disclosure requirements more proportionate to the type and risks of securities being offered, making capital raising more accessible to companies.

Lim is also looking at possible refinements to the Personal Equity and Retirement Account (PERA) framework to make the program more attractive to both employers and employees and encourage greater participation in the capital market.

Other measures introduced during Lim’s first year include a 5-year shelf registration framework, tiered minimum public ownership requirements, expanded REIT rules, Sukuk regulations and Southeast Asia’s first Green Equity Guidelines.

The SEC also widened financing options for smaller enterprises through crowdfunding and sector-specific programs for hospitals, agribusinesses and other priority industries.

The SEC is currently developing a Philippine Capital Market Master Plan with the Asian Development Bank to consolidate its reforms into a long-term strategy for expanding access to capital and improving the competitiveness of the domestic market.

The plan forms part of the SEC’s goal of positioning the Philippines to become one of Southeast Asia’s leading capital markets by 2030.

Lim said capital market development must involve both companies seeking financing and Filipinos who could eventually become investors.

‘Ease of doing business is still very high in our agenda, and we will remain to the same. We will continue with our automation. We want to automate or digitalize almost everything, create one human touch as part of our SEC transformation talk about for enterprises and markets.’

DigiPlus Interactive Corp. is expanding its digital entertainment ecosystem with the launch of ArenaSocial Arcade, a new game suite within ArenaSocial, its free-to-play social game entertainment platform designed to make interactive experiences more accessible, social, and engaging for a wider audience.

The continued development of ArenaSocial, including the launch of ArenaSocial Arcade, marks another step in DigiPlus’ long-term evolution beyond its traditional gaming portfolio toward becoming a broader, technology-enabled entertainment company. By investing in free-to-play experiences and new forms of digital engagement, DigiPlus is building a more diversified ecosystem that caters to different interests and audiences while creating new opportunities for innovation, partnerships, and sustainable long-term growth.

Launched this year, ArenaSocial is a distinct DigiPlus social game platform centered on sports and esports challenges, casual gameplay, community participation, and rewards within a free-to-play, non-wagering environment. Through the platform, users can test their knowledge across a wide range of sports, including basketball, tennis, mixed martial arts, baseball, soccer, racing, cricket, and esports. Users can also participate in sports-based leaderboards, complete missions and challenges, and engage with others around shared interests. Users who regularly participate earn points throughout the competition, and in the end, the top finishers walk away with real prizes, ranging from e-vouchers to iPhones, iPads, and even a holiday.

Building on this experience, DigiPlus has expanded ArenaSocial with the recent launch of ArenaSocial Arcade, bringing more than 100 free-to-play games to the platform. ArenaSocial Arcade offers a range of casual entertainment experiences, including skill-based challenges, fast-paced reflex games, strategy titles, and high-score competitions designed for quick and accessible play.

‘Our expansion into new entertainment formats reflects DigiPlus’ commitment to reaching broader audiences and creating more ways for people to engage with our digital ecosystem. By leveraging our strengths in technology, product development, data, and customer experience, we are building new forms of digital entertainment that complement our established businesses and support our long-term growth,’ said DigiPlus President Ping Chen.

With ArenaSocial and the addition of ArenaSocial Arcade, DigiPlus brings interactive and social features together in an accessible digital environment designed to build communities around shared sports and entertainment interests. The platform complements DigiPlus’ existing portfolio while providing a distinct experience for users seeking casual, recreational, and non-wagering forms of entertainment.

ArenaSocial also provides DigiPlus with a foundation for continued content and product expansion. The company plans to introduce new game formats, missions, community features, and other entertainment experiences as it explores opportunities across sports, lifestyle, social interaction, and emerging digital content categories.

The continued expansion of ArenaSocial forms part of DigiPlus’ broader strategy to build a scalable and diversified digital entertainment ecosystem. By developing experiences beyond traditional gaming, the company aims to reach new audiences, deepen engagement, and create additional avenues for innovation and sustainable growth.

As DigiPlus continues to evolve, the company remains focused on pursuing innovation responsibly, with user experience, safety, accessibility, and sustainable growth at the center of its product development. Through ArenaSocial and future digital entertainment initiatives, DigiPlus aims to build a broader and more connected ecosystem that delivers relevant, localized, and engaging experiences for Filipinos.

As artificial intelligence reshapes jobs and the skills demanded by employers, more working professionals in Cebu are choosing to spend their own money on graduate business education, viewing advanced learning as an investment in staying relevant rather than simply earning another credential.

Shannen Tan, campus head of the Ateneo Graduate School of Business (AGSB) Cebu, said the school has seen growing interest among professionals who personally finance their MBA studies, reflecting a stronger willingness among workers to invest in their own skills and career development.

‘Majority really self-fund,’ Tan said, noting that while some students are sponsored by their companies, a growing number are paying for their own graduate education.

She said professionals increasingly recognize the need to remain relevant as artificial intelligence changes the nature of work, making skills such as critical thinking, adaptability, and leadership increasingly important.

‘I think the ability to have that critical thinking skill will really set you apart,’ Tan said.

Rather than positioning the MBA simply as a qualification to be used after graduation, AGSB emphasizes the immediate application of classroom learning to workplace challenges.

Tan said the school’s approach is highly practice-oriented, with students encouraged to identify problems in their own organizations and apply management tools and concepts to address them.

‘It’s really an investment in themselves,’ she said, adding that students can see the value of the program on an ongoing basis through its application in their workplaces.

The shift comes as professionals also seek ways to pursue further education without putting their careers on hold.

AGSB Cebu, which resumed onsite operations in October 2025 after shifting primarily to online instruction during the pandemic, currently offers a hybrid learning arrangement.

Around half of the classes are conducted onsite while the rest are delivered online, allowing students to maintain professional commitments while pursuing graduate studies.

The Cebu campus offers a Standard MBA program for early-career professionals and the Regis MBA, an accelerated executive program offered through AGSB’s partnership with Regis University in Colorado. The hybrid setup also allows the Cebu campus to connect with students and faculty from AGSB’s other locations, including Iloilo, Santa Rosa, and Clark.

While most Cebu enrollees are from the province, Tan said the campus also attracts professionals from neighboring areas.

For AGSB, the return to on-site learning reflects the continuing value of face-to-face interaction even as digital education becomes more prevalent.

Tan said the school saw the need to restore physical classes because of the level of interaction and networking that take place when students and faculty meet in person.

At the same time, the hybrid format gives working professionals greater flexibility, particularly those who cannot afford to leave their jobs to pursue a full-time graduate program.

The trend also highlights a broader shift in how professionals view continuing education amid technological disruption.

For Tan, graduate business education is not only about technical management knowledge.

AGSB also emphasizes leadership and ethics based on the Jesuit and Ignatian tradition, with students encouraged to develop self-awareness alongside business and management skills.

‘It’s really not just about the technical know-how, but really more about being a better person yourself,’ she said.

AGSB’s experience in Cebu suggests that as AI takes over or transforms portions of traditionally human-driven work, professionals may increasingly turn to higher-order skills-critical thinking, leadership, judgment and adaptability-to remain competitive in a changing labor market.

The Cebu campus has also used free MBA trial classes to allow prospective students to experience its teaching approach before committing to the program.

A recent session, themed ‘Leading Through Chaos: With and For Others,’ brought together professionals for discussions on leadership amid uncertainty and disruption.

For professionals navigating an increasingly automated workplace, the value of graduate education may therefore be shifting-from a credential earned at a particular point in a career to a continuing investment in the ability to adapt, lead and make decisions in a rapidly changing economy.

AS moderate to heavy rainfall threatens parts of Luzon, the National Disaster Risk Reduction and Management Council on Monday said the three successive storms and the prevailing southwest monsoon have severely affected 102 cities and towns that remain under a state of calamity due to severe flooding.

The figure is a sharp increase from the 88 cities and towns under state of calamity in August 22.

The provinces of Bataan, Pampanga, Cavite, Bulacan and Zambales have declared province-wide states of calamity owing to severe flooding.

In its Thunderstorm Advisory 2, the Philippine Atmospheric, Geophysical and Astronomical Services Administration’s (Pagasa) Regional Services Division for the National Capital Region, which also covers nearby provinces, said that moderate to heavy rainshowers with lightning and strong winds are being experienced in Bataan, Tarlac, Pampanga, Rizal (Rodriguez, San Mateo, Antipolo, Cainta, Taytay, Baras, Tanay), Metro Manila (Marikina, Pasig, Quezon City), and Quezon (Lucena, Pagbilao, General Nakar, Tayabas, Panukulan, Burdeos, Polillo, Patnanungan).

The NDRRMC reported that several flooding and landslides during the onslaught of Tropical Cyclones Luis, Maymay, and Neneng, and aggravated by the monsoon rains, claimed the lives of 29 persons, with three others reported missing.

The inclement weather affected 2.2 million families, or 7.5 million persons.

Because of the severe flooding that damaged some 2,500 houses, 9,858 families or 33,358 persons remain in 418 different evacuation centers for shelter, food, and medical care.

According to the NDRRMC, damage to public and private infrastructure has reached P5.1 billion, while damage to crops has reached P1.7 billion.

Part 1 of a two-part series on PR Education

Public relations has never had more tools, platforms, or data. At the same time, the world of work demands graduates who can come in and do the job. We hear it often enough in the academe: more practical skills, more industry exposure, more familiarity with the tools being used.

Fair enough. But is that all a university produces?

If the profession is changing this rapidly, are we preparing tomorrow’s practitioners for the PR they will assume, or the PR we once knew?

I asked PR educators from eight countries how their programs are adapting, particularly in balancing practical skills and theoretical knowledge.

Marco Polo, PhD Associate Professor, Communication and Journalism Department De La Salle University-Dasmariñas, Philippines

From the Philippines, Polo sees both movement and unfinished work: ‘Philippine higher education institutions [HEIs] now offer PR as part of broader communication programs … [courses] such as campaign planning, crisis communication, and stakeholder engagement.’ He adds, ‘To address industry needs, programs are increasingly emphasizing experiential learning, such as internships, case studies, and simulation exercises, to bridge the gap between theory and practice.’

Professor Dr. Jamilah Hj Ahmad, APR, FIPR School of Communication, Universiti Sains Malaysia

In Malaysia, Ahmad brings industry into the discussion: ‘Guest lecturers, internships, and industry sabbaticals help both lecturers and students connect theoretical knowledge with practical experience.’ She also points to the role of the Institute of Public Relations Malaysia in allowing ‘PR academics to engage with industry practitioners and gain exposure to real-life applications.’

Jantima Kheokao, PhD University of the Thai Chamber of Commerce-School of Communication Arts, Bangkok, Thailand President, Asian Network of Public Opinion Research

In Thailand, Kheokao raises another development: ‘Stand-alone PR programs are declining.’ PR is now more commonly taught within marketing communication or broader communication programs ‘because employers need professionals with integrated skills rather than narrow specialization.’

Nia Sarinastiti, PhD Associate Professor, Atma Jaya Catholic University of Indonesia

Part-time lecturer, Graduate School of Communication Sciences, University of Indonesia

In Indonesia, Sarinastiti looks further ahead: ‘Public relations education today is no longer about preparing students for the first job they will hold after graduation. It is about preparing them for professions that may not yet exist, technologies that will continue to evolve, and societal challenges that require ethical leadership.’

In India, Huria describes SCoRe as founded ‘by professionals for the profession.’ Its approach is equally direct: ‘Our program is designed to ensure that every student graduates not just with knowledge, but with the confidence and competence to apply it in real-world scenarios.’

Suk Won Baek, PhD Graduate School of National Policy Chungnam National University, South Korea

From South Korea, Baek says, ‘Korean universities are placing greater emphasis on balancing theoretical foundations with practical skills.’ She cites ‘project-based learning, industry expert lectures, and collaboration with the private sector’ as ways students apply classroom learning to real-world PR challenges.

Elizabeth Soliday-Naui, PhD President, ISASS-SSM Barcelona, Spain

For Soliday-Naui, theory and practice also operate within an international classroom: ‘We place equal emphasis on cultivating strong theoretical foundations and developing essential practical skills.’ With students and faculty representing around 15 nationalities, real-world examples from different countries become part of the learning experience.’

Hui Zhang, PhD Coordinator, Sustainability ProgramAssociate Professor, Department of Communication Bridgewater State University, United States of America

In the United States, Zhang says, ‘We emphasize experiential learning as a cornerstone of our curriculum.’ Internships, Public Relations Student Society of America and an agency-style course provide students with hands-on experience in campaign planning, client relations, and strategic communication.

I understand why industry wants graduates who can hit the ground running. But I would push back on the idea that the university’s job is simply to produce work-ready graduates.

What struck me is that despite all the pressure for practical skills, these educators have not thrown theory out of the classroom.

Theory is sometimes treated as the part that is too academic for the ‘real world.’ I see it differently. A tool teaches us how to perform tasks. Theory helps us ask why we are doing it, what may happen when we do it, and whether we should be doing it at all.

Public Relations education must ‘listen’ to industry; it should not merely follow industry.

The university has to prepare students for the world of work without allowing the world of work to define their education.

Part 2 takes this question into account: technology, AI, and sustainability.

A PR Matter.

PR Matters is a roundtable column by members of the local chapter of the United Kingdom-based International Public Relations Association (Ipra), the world’s premier organization for PR professionals around the world. Rowena Capulong Reyes, PhD is the vice president for Corporate Affairs of Far Eastern University (FEU). She is an executive committee member of the Metro Manila Film Festival 2025 and heads its education committee. She was formerly the Dean of FEU Institute of Arts and Sciences and Colegio de San Juan de Letran. She is the immediate past president of the Philippine Association of Communication Educators (PACE), serving two terms.

We are devoting a special column each month to answer our readers’ questions about public relations. Please send your questions or comments to askipraphil@gmail.com.

For more insights and updates on public relations, follow PR Matters by IPRA Philippines on Tiktok, Youtube, Instagram and Facebook.

THE Philippine Health Insurance Corp. (PhilHealth) is willing to accept another year of losses as it expands benefit packages and continues to rely on government funding to sustain the country’s universal health insurance system.

Speaking to reporters at the sidelines of a news briefing last Thursday, PhilHealth Senior Vice President for Fund Management Sector Renato Limsiaco Jr. said the insurer’s thrust is to strengthen benefits for members rather than restrain spending to break even.

This comes as PhilHealth’s net loss, wider by 21.63 percent year-on-year to P17.902 billion in the first quarter of 2026, is expected to narrow this year.

The insurer’s expenses, mostly for benefit claims, amounted to P99.893 billion in the first quarter, outpacing income at P77.047 billion.

For the full year, PhilHealth expects benefit claims to reach P378.786 billion, which will be funded by premium contributions worth P246.920 billion, along with government subsidy, interests and other income and retained earnings.

Subsidy from the national government, such as the P53 billion in shares from sin taxes and P16 billion earmarked for benefit improvements, will also support PhilHealth’s operations this year, Limsiaco said.

‘Right now, I can’t see that we’re going to break even because if you’re going to break even, you control the expenses,’ Limsiaco said. ‘But we still have retained earnings. We still have reserve funds. Why would we control the expenses? People need support.’

As of end-March, PhilHealth’s retained earnings stood at P76.244 billion and will be boosted by the P60 billion returned by the national government last April.

To recall, PhilHealth remitted P89.9 billion of its reserve funds to the Treasury in 2024 to fund the unprogrammed appropriations in the national budget.

‘If it is not enough, we still have a buffer that we can use to cover the requirements,’ Limsiaco said. ‘We can still manage it. We just need to push for the [national government] counterpart so that we can continue covering the costs.’

PhilHealth has initially requested a budget of P370 billion for 2027 to implement its expanded benefits.

However, the government only accommodated P74.448 billion under the 2027 National Expenditure Program, slashing PhilHealth’s proposal by nearly 80 percent. This is also 74.32 percent lower than this year’s allocation of P129.782 billion.

PhilHealth’s financial sustainability is becoming strained as benefit claims are rising faster than its premium collections, driven by the insurer’s tack to ramp up benefit packages and widen healthcare coverage for its members.

In 2025, PhilHealth rolled out its ‘Yaman ng Kalusugan’ program, or ‘Yakap’ (embrace), offering an expanded package of accessible health services, including primary care checkups, medicines, basic laboratory tests and screening.

Limsiaco said Yakap could contain the increase in benefit claims of hospitals, as greater access to primary care, early detection and early treatment would reduce the need for more expensive hospital-based care.

The impact, however, may take time to materialize, with PhilHealth expecting to see the results over the next three years as the program is expanded.

PhilHealth has P308.950 billion in reserve funds to date, which Limsiaco said could be used if additional resources are needed to support benefit packages.

The insurer has also accumulated P31.135 billion in interest income from reserve funds as of end-March.

‘For now, we just need to continue improving the system, improving benefit packages, making sure people can avail themselves of the benefits, [and] speeding up claims processing,’ he said.

THE central bank has rolled out the guidelines for the grant and implementation of aid for rural banks as they migrate to a modern banking system.

According to the Bangko Sentral ng Pilipinas (BSP) Memorandum M-2026-042, one of the key components under the ‘Rural Bank Strengthening Program’ (RBSP) technical assistance is to support rural lenders in the migration from ‘legacy information technology systems to cloud-based or software-as-a-service (SaaS) core banking systems (CBS).’

According to the central bank, a SaaS CBS is a ‘cloud-hosted core banking system operated by an external provider and accessed by the bank over secure electronic channels on a subscription or usage basis and is treated as outsourcing of IT systems under BSP regulations.’

The BSP said the technical assistance (TA) shall include helping rural banks acquire and subscribe to a SaaS CBS for a limited period to enable enhancements in their operational efficiency, operational resilience, business continuity, cybersecurity, and regulatory compliance capabilities.

In the long run, the TA, likewise, aims to support the ‘viability and competitiveness’ of rural banks amid the increasing digitalization in the financial system, the central bank explained further.

As such, the BSP released the guidelines, qualification requirements, documentary requirements, procedures and other governing rules for the grant and implementation of the TA.

‘The TA shall provide qualified banks with support for the implementation and multi-year subscription to a Saas CBS, subject to the BSP’s evaluation and approval in accordance with these guidelines,’ The central bank said in the memorandum.

The BSP explained that the support shall include the services necessary to implement and operationalize the CBS. The latter includes system configuration, data migration, system integration, testing, user training, commissioning, cloud infrastructure, technical support, system updates, and maintenance services.

The implementation period of the assistance shall be six months maximum, reckoned from the date of issuance by the BSP to the Service Provider of the deployment notice covering the Recipient rural bank.

The implementation period shall cover the deployment of the CBS up to successful full system ‘go-live.’

Meanwhile, the BSP said the TA shall cover the fixed subscription period of 36 months from the end of the implementation period.

‘The subscription period shall cover the continued access to and operation of the CBS and related support services upon successful system Go-Live,’ the central bank said.

A recipient rural bank refers to a rural bank whose application for the RBSP digitalization TA has been approved by the BSP and has ‘duly executed’ a related agreement with the central bank.

Rural banks shall submit documentary requirements for their application for the TA. Those seeking to receive TA shall also submit a certification from the president of the bank that the lender has no existing subscription to a SaaS CBS platform at the time of the application for the aid. Rural banks should also submit accomplished self-assessment checklist signed by the president and accomplished IT outsourcing questionnaire.