Category: Business Mirror

Honest spending of public money on the services everyone relies on!

These include quality education, decent healthcare, well-functioning transport and energy infrastructure. Protection from deadly floods. Opportunities for the next generation. The freedom to hold leaders to account by protesting safely.

In the Philippines, Nepal and Indonesia, when these reasonable expectations are not met, people are taking to the streets to voice their concern.

In the Philippines, mass protests on Sunday followed months of growing anger over allegations that billions of pesos meant for flood relief were siphoned into fake projects.

The revelations come as the country reels from severe flooding, which frequently causes fatalities. Citizens are demanding the return of stolen funds and accountability for those responsible-a demand that reflects a wider frustration in a country.

In Nepal, a government ban on social media earlier this month lit the spark for protests that have since grown into a broader youth-led movement. They are protesting widespread corruption and political impunity, nepotism and neglect of basic services such as education and healthcare, which limit their opportunities. With frustrations having mounted for some time, these demonstrations became one of the country’s largest protest movements in recent years, and tragically, 72 protesters-most of them young-lost their lives.

In Indonesia, peaceful protests over the past weeks against corruption and abuse of power have also been met with a violent crackdown. At least ten people have been killed and hundreds injured, while three leading activists-now named suspects under incitement and even spreading false information charges-remain detained without due process. Live protest broadcasts have been banned, and pro-government networks have been spreading disinformation attacks against civil society organizations. safeguards civic freedoms and embeds integrity in development and climate policies, corruption will remain deeply entrenched.

The message from the streets of Manila, Kathmandu and Jakarta is the same: people-especially the younger generation-are demanding transparency and accountability. They know corruption is not an abstract problem-it drains resources from classrooms and hospitals, weakens climate defenses, silences independent voices and destroys public trust. Ultimately, young people feel it blights their future, shutting down opportunities through weak institutions, nepotism and poor-quality services.

Without transparency, there are weak checks and deterrents, making it far easier for billions of pesos in climate funds to disappear in the Philippines. Without it, political impunity in Nepal can continue unchecked as wrongdoers escape prosecution. And without it, governments in Indonesia can crush dissent and hide the truth. Another important factor in restoring trust is: swift justice! Swift justice is essential not only for the law to function properly but also for maintaining the people’s faith in democracy. Truth without prompt and effective disposition of corruption cases, public trust in government will continue to erode, and the rule of law will become a meaningless phrase.

These protests are part of a wider spate of anti-corruption movements worldwide, where people are making reasonable demands that represent the bare minimum of democratic governance: honest leaders, transparent spending on quality public services, freedom to speak out, and confidence that wrongdoing will be punished under the rule of law. Meeting these expectations should not be optional.

These movements show that corruption is not just a grievance to be tolerated-it is the breaking point where trust collapses and people demand change.

I would welcome your government expectations! Contact me at hjschumacher59@gmail.com.

Becoming an investment hotspot has been the goal of the Philippines for some time. Challenging the dominance of well-known investment destinations and providing an attractive investment climate required tweaks and changes to our tax and incentive laws, among others. One of the early attempts to improve the investment stature of the Philippines was the enactment of the ‘Corporate Recovery and Tax Incentives for Enterprises’ or more popularly known as the CREATE Act.

However, while CREATE aspired to propel the Philippines forward, to say that it has been mired in hampering issues is a bit of an understatement. CREATE’s lofty goals have been weakened by questionable execution of some of its provisions – the text of the law versus the promulgated rules and regulations; the legislative intent versus the administrative implementation.

Such incongruity has once again been highlighted in a recent decision of the Supreme Court involving the question of validity of certain provisions of CREATE’s implementing rules and regulations (IRR) as well as its related revenue regulations (RR).

Under CREATE, registered business entities (RBE) are entitled to VAT zero-rating on their local purchases of goods and services directly and exclusively used in the registered project or activity. However, the subsequently issued IRR and RRs changed the VAT zero-rating eligibility and made it applicable only to registered export enterprises (REE). It effectively deprived Domestic Market Enterprises (DME) of the same tax incentive despite them being RBEs.

Consequently, local suppliers charged VAT on the purchases of goods and services by DMEs. In turn, the DMEs under the 5 percent Special Corporate Income Tax will recognize the passed-on VAT as part of their costs or expenses.

The petitioner-DMEs in the case believed that the IRR and RRs unduly limited the application of the VAT zero-rating for local purchases since the law made no distinction between REEs and DMEs. In other words, they assert that all RBEs should enjoy the VAT zero-rating for local purchases.

After much deliberation, the Supreme Court held that the IRR and RRs are unconstitutional. Essentially, the IRR and RRs unlawfully altered the provisions of CREATE by carving-out DMEs from those entitled to the VAT zero-rating incentive. Considering that the grant and withdrawal of tax exemption is exclusive within the domain of legislation, the VAT zero-rating incentive cannot be removed or withheld from DMEs by an administrative issuance (such as an IRR or RR).

The case is a resounding acknowledgment of the implementation issues under CREATE that are experienced by taxpayers. However, while the Supreme Court sided with the taxpayer, what can the latter actually do with it? Is the decision anything more than a paper win?

Now that the Supreme Court upheld the entitlement of the VAT zero-rating incentive of DMEs under CREATE, can the latter file a claim for refund with the BIR on the VAT passed on by their local suppliers? Unfortunately, there are significant hurdles that DMEs must overcome:

Although any possible refund involves input VAT, it does not automatically mean that the claim for refund would be based on unutilized creditable input VAT under Section 112 of the Tax Code. Since the sales of DMEs are generally not zero-rated nor effectively zero-rated, it cannot claim refund under Section 112 of the Tax Code. As such, any refund would be based on Section 229 of the Tax Code which would require proof that the passed-on VAT on the local purchases is erroneous or illegally collected.

Even if the DME was able to prove that the passed-on VAT was erroneously or illegally collected, the administrative claim for refund must be filed within the 2-year prescriptive period regardless of the existence of any supervening cause after payment. Since CREATE took effect in April 2021, some claims may already be time-barred.

Further, it should be noted that CREATE has been amended by CREATE MORE. Among the CREATE MORE amendments is the express removal of the VAT zero-rating incentive on local purchases for DMEs. In effect, the doctrine laid down by the Supreme Court would not apply for local purchases by DMEs covered by CREATE MORE.

While the Supreme Court validated the position of DMEs, its redeeming effect is limited by practical circumstances and the effect of the improper implementation is not wholly recoverable. As between proper implementation and court vindication, laws would have a better chance of achieving its goal if we strive to effect the former rather than the latter.

The author is a partner of Du-Baladad and Associates Law Offices (BDB Law) (www.bdblaw.com.ph).

The article is for general information only and is not intended, nor should be construed as a substitute for tax, legal, or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported, therefore, by a professional study or advice. If you have any comments or questions concerning the article, you may e-mail the author at jomel.manaig@bdblaw.com.ph or call 8403-2001 local 140.

The Securities and Exchange Commission (SEC) has issued a show cause order against the asset valuer of Villar Land Holdings Corp., whose shares remain suspended on the Philippine Stock Exchange.

In a letter dated September 29, the SEC’s Office of the General Accountant directed E-Value Phils. Inc. to explain why it should not be subjected to penalties and sanctions relative to its valuation of properties of companies under the Villar Land group. These were Althorp Land Holdings Inc., Chalgrove Properties Inc. and Los Valores Corp.

The issuance of the order follows special onsite inspections conducted by the agency to determine the company’s compliance with SEC Memorandum Circular No. 2, Series of 2014, which provides for the Guidelines on Asset Valuations, and effective International Valuation Standards in the preparation of the appraisal reports of the companies.

The order forms part of the SEC’s investigation into Villar Land Holdings, which was recently ordered to pay administrative fines totaling P12 million for violations of Republic Act 8799, or the Securities Regulation Code, over its failure to submit its audited financial statements on time.

The investigation into E-Value is in line with the visitorial powers of the SEC, to regulate and supervise the activities of corporations, as well as impose sanctions when necessary.

‘The SEC will continue to investigate this matter thoroughly in the interest of upholding transparency and accountability in valuation practices and accuracy in financial reporting. The Commission will provide updates as necessary in the interest of the public, while upholding the required confidentiality of the proceedings.’

The SEC in August fined Villar Land, formerly Golden MV Holdings Inc., and its 11-man board of directors, some P12 million for the repeated delays in the filing of its annual and quarterly reports.

In its order, the SEC’s Market and Securities Regulation department said it found Villar Land and its board ‘administratively liable for gross negligence or bad faith in directing the affairs of the company,’ for its inability to file its annual 2024 and first quarter 2025 reports.

The administrative fine involves P1 million for each board member and the company itself, and P2,000 each for every delay of submission from July 1 until the company submitted its report.

The board includes the three Villar siblings; their father and company chairman Manuel B. Villar Jr.; company president Cynthia J. Javarez; independent directors Ana Marie V. Pagsibigan and Garth F. Castaneda; the company’s CFO, CIO and heard of IR; its corporate secretary; assistant corporate secretary; and compliance officer.

In a statement, Villar Land and its officers said they ‘welcome the opportunity to explain their side on the issues raised and will respond to the SEC’s order in due course.’

It said the delay in the filing of the annual report and the first quarter 2025 report of Villar Land is not due to the refusal of its external auditor to sign the 2024 audited financial statements.

‘The delay was caused by the auditor’s varying requests for additional audit procedures in the course of their review of the valuation of the Villar City properties that were acquired by Villar Land in 2024.’

SMALL steps are often underestimated. Especially in the dog eat dog world of entertainment and the performing arts.

Many dream of becoming celebrities, and most of these dreamers will choose the one-time-big-time route not realizing that more often than not, true success comes when they take it one step at a time.

That is why we are so happy when we get to meet young artists who are not rushing to become big stars, who know that strategy is oftentimes a wonderful weapon to have, and who believe that timing is of great importance.

Take the case of new actor Miguel Odron, who continues to captivate the independent film audience worldwide with his effortlessly brilliant performance in Petersen Vargas’s Some Nights We Feel Like Walking, a wonderful film we were able to see when it was shown in local cinemas a few weeks ago.

The good news is: Odron recently scored a feature performance award nomination from the highly touted Iris Prize, an international LGBTQ+ festival and event open to films by, for, about, or of interest to these specific communities. The winners will be announced on October 19, in Cardiff, Wales.

The movie is Odron’s first acting assignment, and he admitted to being surprised by this nomination. ‘I’m truly out of words with this unexpected recognition. You can call me an accidental actor who tremendously enjoyed my experience working on my very first film. All I just want now is to make more films, and this nomination is more than a stamp of approval that I’m in the right career direction. I’m just happy that the film is getting a lot of good feedback from audiences around the world.’

Odron has proven once more that every step forward-no matter how small-is still movement in the right direction. And taking these small steps is the only way we can get to the top of a flight of stairs, to reach for our dreams, and to work on what we truly desire. I also got to meet two promising Sparkle artists recently: Kim Perez and John Rex.

Perez just released his song ‘Huling Hinto,’ a rock ballad that is hauntingly sad, while Rex, the grand winner of The Clash 2023 edition, lends his soulful vocals to the song ‘Kahit Wala Na Tayo.’ Rex’s powerful ballad has been chosen as the theme song for the drama series Cruz versus Cruz.

‘I’m waiting for my big break as a singer. My big win at The Clash was actually a jump-off point, but where I land will be my destiny. That’s why I work very hard and seize every good opportunity that comes my way. They say that all it takes is one song for a singer to soar to greater heights, and I’m taking all these small steps knowing that I will soar when my wings are ready,’ Rex shared.

Indeed, what starts as one small step often leads to another. When we focus on what we can do, we start to build momentum. A single effort can set off a chain reaction that, more often than not, leads to greater opportunities and more significant wins.

Aside from being a singer, Perez is also trying his luck as an actor. He is currently cast in the GMA TV series Sanggang Dikit. ‘I’m easy, you know. I don’t mind being described as an actor who can sing or a singer who can act. I’d love to explore all the possibilities that will be made available for me at this time in my young career. I enjoy doing both actually. In singing, I’m usually all by myself as a performer, but in acting I have to be a team player.’

A few days ago, I was happy to find out that Noel Comia has been cast in the upcoming musical Bagets, a production of Viva Live Events. He will give life and music to the same role that Herbert Bautista portrayed in the 1984 movie version.

I was first drawn to Comia in 2017 in the Cinemalaya movie Kiko Boksingero where I raved about his performance. There was no surprise when the then 12-year-old newbie actor romped away with the festival best actor prize for his endearing yet powerful performance.

The doors opened one by one for this promising actor who is slowly building quite an impressive filmography with such movies, like Song fo the Fireflies, Death of Nintendo, Gitarista, Tenement 66, Rainbow Sunset and Children of the River. He has also lent his talent to several theater productions and have won acting awards for these.

Not many remember Comia being part of the third season of The Voice Kids, making it to Lea Salonga’s Top 8 hopefuls. That is why I am excited to see how he will transform as an actor-singer when Bagets the musical comes to life onstage early next year at The Newport Performing Arts Theater.

Comia’s is a classic case of progress not being about perfection. It’s about focusing on what you can do with what you’ve got in reaching for your goals, no matter how small that action might seem. In the world of entertainment, it’s always tempting for newcomers to believe that only big, dramatic efforts bring results, but more often than not it’s the small consistent actions that actually shape our lives and determine the future. Like that of Comia’s.

When we focus on what we can do, however small that may seem to others, something shifts within us. The weight of difficulty, fear, doubt and frustration lightens, the mind becomes clear, and amazing ideas emerge. What was once a narrow mindset starts to expand, and creative juices start to flow naturally.

Success breeds success. Just like compound interest, small steps add up to impressive rewards. And these small steps help talented hopefuls like Miguel Odron, Kim Perez, John Rex, and Noel Comia create valuable habits that will help them achieve bigger gains in the future.

I have to admit, I’ve missed the feeling of getting lost in a book-the kind that lets you travel without ever leaving your seat. Books have always been an ingenious vehicle for escape, a way to explore places and live through moments far from your own reality.

I started reading as a kid, borrowing Nancy Drew Mystery Stories by Carolyn Keene from our school library. That small habit opened up a world of imagination. Through The Count of Monte Cristo by Alexandre Dumas, I wandered the streets of France and Italy, and in The Notebook by Nicholas Sparks, I fell in love with the charm of the American countryside in the 1940s. I may have been in the comfort of our home, but those stories made me feel like I had already traveled the world.

Lately, I’ve been feeling that familiar urge to return to reading and to once again lose myself in stories that transport me to places I’ve never been. The timing couldn’t have been more perfect as the Big Bad Wolf book sale has officially returned to Metro Manila. Happening from October 2 to 13, 2025, at The Filinvest Tent in Alabang, the final leg of the country’s largest book sale brings massive discounts of up to 95% off across thousands of titles. For someone rediscovering the joy of travel through words, it felt like the perfect invitation to explore new destinations, this time, through the pages of a book.

More than Just a Book Sale

The sheer volume of books at Big Bad Wolf can be overwhelming at first, but the beauty of it being a 12-day event means there’s no need to rush. Doors are open from 10:00 AM to 10:00 PM on weekdays, and until midnight on weekends. There are food stalls lined up outside when you need to take a break, or you can always come back for another round. The best part? Admission is absolutely free! Whether you’re with family, friends, or going solo, it’s an experience that feels both nostalgic and exciting.

Book Recos and Unexpected Finds

If you’re open to exploring beyond your usual reads, Big Bad Wolf has curated aisles filled with bestsellers, BookTok favorites, and Top 10 Picks from various genres. And if you’re looking for something specific, their assistants at the customer service booth can help track it down. Some titles on my readlist weren’t available, but I learned that the Big Bad Wolf team actually takes note of what readers look for and tries to include them in future runs.

Bigger Deals and Amazing Prizes

Beyond further markdowns and irresistible discounts, Big Bad Wolf keeps the excitement going with amazing raffle prizes. For every ?5,000 single-receipt purchase, shoppers can get a chance to win a brand-new iPad, an IKEA bookshelf filled with 100 books, or the grand prize of a 3-day trip for two to Hong Kong! It’s a fun giveaway that adds to the thrill of the hunt, especially for those who can’t resist making the most of the book sale.

Finding My Way Back to Reading

Big Bad Wolf has always championed the joy of reading by making books more affordable and accessible to everyone. After years of consuming mostly digital content, being surrounded by rows of stories felt like a homecoming to me. Each book held the promise of a quiet escape, an exciting journey, and a reminder that we don’t always need to board a plane to explore the world. Sometimes, all it takes is turning a page.

The Manila Electric Co. (Meralco) is pursuing joint ventures with at least 15 electric cooperatives (ECs) as it seeks to expand its reach beyond its traditional franchise area with the intent of providing reliable and affordable electricity.

In an interview with BusinessMirror, Meralco senior vice president and chief external and government affairs officer Arnel Casanova said the utility firm is hoping to conclude deals with a number of ECs in the next two or three years. The planned investment, he said, is ‘quite substantial because you need to infuse more for capex [capital expenditure].’

Included in its list are First Laguna Electric Cooperative Inc. (Fleco) and South Cotabato II Electric Cooperative Inc. (Socoteco II).

‘Actually, we’re more aggressive in South Cotabato. There are 120 electric cooperatives. If someone wants to join with us to provide better electricity service then it will be good. We have almost 15 on our list. We are working on all of them, some are at the very early stages, but with Batelec II [Batangas Electric Cooperative Inc.], there’s a proposal already,’ he said.

The planned joint venture will be done by converting an electric cooperative into a stock corporation, a move that is allowed under the Electric Power Industry Reform Act (Epira). Basically, Meralco would infuse capital by purchasing shares in the new stock corporation.

Meralco has been in discussions with Batelec II for a joint venture. The utility firm is now waiting a reply from its board. ‘Hopefully, by next year we can finalize one. Hopefully, Batelec I and II, and Socoteco, and then we’ll convert the whole of Pampanga into a joint venture as well.’

Meralco and its subsidiary, Comstech Integration Alliance Inc., manages Pampanga II Electric Cooperative (Pelco II). The partnership began in 2014, involving management support and investments aimed at improving the electric cooperative’s customer service, reliability, and power supply. Pelco II was once classified as an ailing cooperative. Since the partnership, Pelco’s financial performance has significantly improved earning it a rating of ‘AAA.’

It makes sense for Meralco to form JVs with the ECs that are operating near its franchise areas because these can be easily connected with the Meralco substations.

‘But the biggest challenge here is usually the electric cooperatives are historically hostile to private capital because they mostly depend on national government. They are used to that. But the times have changed, they have to adapt or the entire economy will suffer. So, because the industries cannot grow, foreign investors cannot come in as well. Tourism suffers, even healthcare, and our agriculture also.’

At end-June this year, Meralco reported over eight million residential, industrial, and commercial customers in its franchise area. These are Metro Manila, parts of Bulacan, Cavite, Rizal, and select areas in Pampanga, Laguna, Batangas, and Quezon.

The Bank of the Philippine Islands (BPI) proudly announces its win as the Best Small Business Banking Service in the Philippines at The Asian Banker Philippines Excellence in Retail Finance and Financial Technology Awards 2025. This prestigious recognition underscores BPI Business Banking’s continued leadership in empowering Small and Medium Enterprises (SMEs) with financial solutions that are madali, magaan, at mabilis.

This award reaffirms BPI’s position as the partner of choice for SMEs, providing accessible and inclusive financial products and services that support long-term business growth.

‘SMEs are the lifeblood of the Philippine economy. At BPI, we understand their challenges and aspirations, and we are proud to walk with them in their journey of growth,’ said BPI Business Banking Head, Dominique ‘Ococ’ Ocliasa.

‘This recognition reflects our commitment to deliver purpose-driven innovation, relevant financing, and capacity-building support to SMEs nationwide,’ he added.

In 2024, BPI Business Banking achieved a 106% growth in SME loan portfolio and an 18.2% increase in SME clients, driven by data-centric strategies and a customer-first approach. Central to this success is Ka-Negosyo On The Go (KNOTG), the Philippines’ first fully digital SME loan application platform, featuring a Loan Finder, Eligibility Checker, and online loan application tool. Last year, the KNOTG platform grew its leads generation by 141% and its online applications by 95%, with approved accounts amounting to PHP 1.32 billion in loan amount.

BPI also introduced alternative credit scoring models, expanding financing access to underserved sectors. Notably, BPI’s simplified pre-qualified loan application program has helped expand access to financing for underserved yet credit-worthy SMEs, and contributed 24% to the 2024 loan portfolio growth.

While leading with digital innovation, BPI remains committed to personalized service. The bank’s hybrid model combines advanced technology with human touchpoints, ensuring every SME client receives expert guidance and long-term support.

Through initiatives like BizTalk, Ka-Nego Talk, and the Ka-Negososyo series, BPI delivered business education and insights to over 900 SME clients in 2024.

Complementing its lending products is BPI BizLink, a secure, 24/7 digital banking platform that enables over 22,000 SMEs to manage their finances seamlessly-whether it’s paying suppliers, employees, or government dues.

As the only commercial bank in the country offering an end-to-end online SME loan process with integrated e-signing via DocuSign, BPI sets the benchmark for innovation and inclusivity in SME financing.

The award reflects BPI’s broader mission to reinvent banking by focusing on digitalization, sustainability, and a customer-centric approach. With resilience and foresight, BPI continues its 174-year legacy of banking excellence, delivering real value to customers, employees, and communities alike.

Federal Land NRE Global Inc. (FNG) said it will launch the second tower of its The Observatory development in Mandaluyong by the first half of 2026 after its first tower outperformed the company’s previous number one project in Taguig.

William Thomas F. Mirasol, FNG president, said the first residential tower, which has 692 units and called ‘Sora’ or the Japanese word for sky, has been outselling its Seasons Residences in Bonifacio Global City (BGC) in Taguig.

‘The launching of the second (tower) should happen within the first half of 2026. At the pace that we are currently selling, there will be a need for the second tower in the first half of next year,’ Mirasol said.

FNG is a joint venture between Federal Land Inc. and Nomura Real Estate Development Co. Ltd.

Sora is set to be completed on 2030, and Mirasol said the company sold 60 percent of the project since it opened it up since July.

‘It’s selling faster than the Seasons Residences did, which was surprising because the Seasons is in BGC and there’s been a sustained demand there versus here, it’s not really that type of investor market that we were enjoying in BGC,’ Mirasol said.

‘The people are beginning to really recognize the potential of Mandaluyong, especially the Japanese market.’

The said development is priced at P290,000 per square meter, lower than BGC’s P460,000 per square meter, according to Mirasol.

‘So, you know we have some people walking in our showroom in Seasons Residences, (we’re saying that) down the road there’s Observatory. So, we’re getting that market also, the aspirational market who wants the BGC lifestyle but isn’t quite there yet.

‘So they will just drive across the bridge and they will have another option,’ he said.

The Observatory is a 4.5-hectare mixed-use township by FNG. It sits beside Robinsons Land Inc.’s own development, along Edsa and Pioneer Street in Mandaluyong.

It will have nine towers, but Mirasol said the first phase of development only covers three residential towers, with an office building.

It is envisioned to have residential towers, retail offerings and an office building.

‘The development offers a modern retreat in a strategic location, emphasizing convenience and comfort, and empowering homeowners to thrive in the city. Showcasing the essence of The Observatory, its latest 1,700-square meter sales pavilion presents FNG’s harmonious convergence of Japanese and Filipino cultures.’

Mirasol said they are ‘very excited’ about marketing the FNG brand in the country.

‘The Philippine consumer has an affinity for things Japanese. Cars, electronics, culture, food, everything. The Japanese, they know how to do things better. So this partnership for us is very strategic. Take advantage of their know-how and our know-how in the local market.’

THE world’s happiest kingdom and Southeast Asia’s happiest nation have officially forged diplomatic ties.

The Philippines and Bhutan formally established diplomatic relations Monday, October 6, 2025, marking a new chapter in bilateral cooperation between two Asian countries known for their resilience, cultural pride, and people-first development models.

The Joint Communiqué was signed in New Delhi by Philippine Ambassador to India Josel F. Ignacio and Bhutanese Ambassador to India Major General Vetsop Namgyel, in a ceremony hosted by the Royal Bhutanese Embassy. Diplomats and staff from both missions witnessed the historic event.

Ambassadors Ignacio and Namgyel hailed the formalization of ties as a milestone built on years of goodwill and collaboration.

‘Today, we have given flesh to the mutual aspiration of our governments and peoples to promote mutual understanding and strengthen friendship and cooperation, guided by the principles of the UN Charter and international law,’ said Ambassador Ignacio.

He noted that the Philippines and Bhutan had cultivated ‘cordial ties for years,’ with Manila extending technical assistance and training to Thimphu. The establishment of diplomatic relations, he added, is ‘ushering in a new epoch’ for bilateral engagement.

‘We foresee engagements between both our countries gaining new momentum-in economic interaction; people-to-people, tourism and cultural exchanges; and cooperation in multilateral fora to advance shared advocacies,’ Ignacio said.

Ambassador Namgyel echoed the sentiment, citing Bhutan’s longstanding access to Philippine education and training programs through the Colombo Plan, the Asian Development Bank, and the JICA Third Country Program.

‘Many Bhutanese students have completed undergraduate and master’s degrees in Philippine universities,’ Namgyel said.

He also thanked the Philippines for its contribution to Bhutan’s De-Suung (‘Guardian of Peace’) Skilling Program, which has hosted 17 Filipino expert trainers to date.

Namgyel affirmed Bhutan’s commitment ‘to work closely with the Philippine Embassy to take our friendship and cooperation to new heights in the years ahead.’

The ceremony concluded with a reception featuring Bhutan’s traditional Suja Desi-butter tea and sweet saffron rice-alongside Filipino and Bhutanese dishes.

The diplomatic milestone carries symbolic weight: Bhutan, globally admired for its Gross National Happiness (GNH) index-a development model that prioritizes well-being over GDP-is often cited as the happiest country on earth.

The Philippines, meanwhile, consistently ranks among the happiest in Southeast Asia, buoyed by strong family ties, community spirit, and cultural resilience despite economic and climate challenges.

With this signing, the Philippines becomes the 58th country to establish diplomatic relations with Bhutan, and only the sixth among ASEAN member states.

Davao is one of the most competitive cities in Mindanao, that’s why it is a preferred location of multinational outsourcing companies. The city is also regarded as one of the safest localities in the country, making it an appealing business destination for expatriates. Over the years we have seen Davao faring well in terms of competitiveness, as measured by key indicators including size of domestic economy, disaster resilience, ease of business registration, etc. In our view Davao holds a lot of promise and is one prime location that office landlords and occupants should keep an eye on.

Colliers Philippines believes that the city’s skilled manpower will continue attracting outsourcing locators. This should be supported by the seamless coordination of the city’s business groups, information and communications technology (ICT) councils, and academe.

Colliers is optimistic that the development of more integrated communities in the city should result in the construction of newer and more sustainable office spaces. Tenants should be on the lookout for the completion of these high-quality office spaces and should even consider pre-leasing.

Competitive vacancy outside Metro Manila

As of end-Q2 2025, overall vacancy in Davao reached 5.5 percent (down from 6.6 percent a quarter ago), one of the lowest vacancies outside the capital region due to sustained demand from outsourcing companies.

With this level of vacancy, Davao is the only office market hub outside Metro Manila that enjoys a landlord’s market status.

Office transactions up 32% YoY

In H1 2025, Davao recorded 10,400 sq metres (111,900 sq feet) of office space transactions, up 32 percent YOY and accounting for 7 percent of the total deals in areas outside the National Capital Region (AONCR). Among the notable deals recorded in Davao from 2024 to H1 2025 were spaces occupied by Teleperformance, Alorica, Optum, VA Platinum, Ibex and CubeWork. These firms took up spaces in Matina IT Park (Plaza de Luisa Development Inc.), Robinsons Cybergate Delta 1 (Robinsons Land) and The Uprise (Felcris Hotels and Resorts). Other outsourcing firms that have established their presence in the province are OP360, Concentrix, Wipro, iQor, Cloudstaff, Sutherland, and VXI.

As of end H1 2025, net take-up in Davao reached 23,000 sq meters (247,500 sq feet), already more than double the 10,900 sq meters (117,300 sq feet) of net absorption recorded a year ago. By end-2025, Colliers projects net take-up to reach 30,000 sq meters (322,800 sq feet).

Office supply to grow by 20% by 2027

As of end-Q2 2025, Davao’s office stock reached 379,000 sq meters (4.1 million sq feet). From 2025 to 2027, we project the average annual completion of 26,800 sq meters (288,400 sq feet) of new office space in Davao, up from only 1,600 sq meters (17,200 sq feet) of new supply completed annually from 2021 to 2023. Among the office towers likely to be completed during the period include SM Lanang BPO Towers 1 and 2, One Republic Plaza and Azuela Technohub.

From 2026 to 2027, Colliers sees the completion of new office towers in Davao city by Megaworld, Robinsons Land, Ayala Land, and SM.

Bustling residential hub

Colliers believes that the increasing office transactions in Davao should partly support residential demand in the city. The entry of national property developers such as Megaworld, Ayala Land, Robinsons Land, Filinvest Land, SMDC, Vista Land, and Cebu Landmasters (CLI) also strengthened Davao’s position as a major property investment destination in the VisMin region.

For the condominium segment, among the developers which launched projects since 2024 include Filinvest Land, Torre Lorenzo and Damosa Land. These projects are priced between P180,000 and P283,000 (USD3,200 and USD5,100) per unit with take-up ranging from 63 percent to 100 percent. Meanwhile, CLI, Alsons Properties and Phinma Properties recently launched new house-and-lot projects in the city. Vista Land continues to be a major player in the residential lot only segment.

Property firms are also launching expansive integrated communities in Davao which will feature residential, office and retail components. Ongoing township projects include CLI’s Davao Global Township (DGT), and Alsons Properties’ Northtown. Ayala Land recently launched the 204-hectare Ascenda.

The launch of these master-planned communities will likely be the norm moving forward as Davao residents and investors put a premium on convenience and sustainability. There’s no doubt that Davao is well-positioned to reap the gains of a rebounding and evolving property market down south. Developers and investors should be quick in capturing these opportunities.