Category: Business Mirror

Why spend ?12 billion a year on foreign servers when we can build our own for ?2.5 billion?

This was the central question raised during the House deliberations on the DICT’s 2026 budget, as lawmakers pressed for investments in local data centers to reduce dependence on costly and risky foreign cloud storage.

Rep. Presley De Jesus asked the sponsor how much government would need to establish its own facilities.

Rep. Brian Poe, sponsoring the budget, replied:

‘Mr. Speaker, it will cost us ?2.5 billion pesos. However, what I wasn’t able to clarify. is that the ?2.5 billion is not all in one go. In fact, based on the absorptive capacity of DICT, we will have to spread out this ?2.5 billion across the remaining three years of the administration to build these data centers.’

Rep. Robert Nazal then raised funding options, suggesting the Spectrum Users Fund (SUF) as a possible source:

‘Since we’re already requesting for the ?2.5 billion and we intend to get it from the GAA, why not get it from the SUF?’

Poe acknowledged the proposal but explained DICT’s immediate priorities:

‘Mr. Speaker, DICT is prioritizing the connectivity, the internet connection, as well as the continuing appropriation for maintenance and operation of these Free Wi-Fi sites. Now, to my colleague’s point, I understand where he’s coming from. If there’s ?21 billion sitting in this fund and there is a bad need for these data centers, why not consider the data centers? And that’s something that we can take up. But before we go into that, I think the DICT has a pressing commitment by October to deliver these Free Wi-Fi sites to the Filipino people.’

Both interpellators and Poe agreed that local data centers are vital – not only to save billions in recurring cloud rental costs but also to safeguard sensitive government information. Poe closed by emphasizing that DICT has steadily improved its absorptive capacity – from 87% utilization in 2024 to a projected 93% in 2025 – making it ready to roll out phased investments in data centers while ensuring the timely delivery of Free Wi-Fi commitments to the Filipino public.

Seven years after the launch of the Meetings, Incentives, Conventions, and Exhibitions Roadmap 2030, the Philippines’ performance in attracting international MICE delegates remains shockingly low. Senator Loren Legarda’s incredulous reaction to the Department of Tourism’s (DOT) budget presentation, where it was revealed that a mere one percent of tourist arrivals are for conventions and conferences, underscores the gravity of the situation. With only 60,000 MICE delegates out of nearly six million international travelers in 2024, it’s clear the country is missing out on a significant economic opportunity.

The Tourism Promotions Board acknowledges the need for improvement, citing safety and security concerns as major challenges. While these are legitimate issues, they are not insurmountable, nor are they solely the responsibility of the DOT and TPB to solve. As Senator Legarda pointed out, MICE is a ‘low-hanging fruit’-an area where the Philippines should be excelling.

The lack of comprehensive data on MICE arrivals, particularly pre-pandemic, is a major impediment. The TPB’s admission that gathering this data is a priority for next year is concerning, given that the MICE Roadmap 2030 was launched in 2018. Without a clear baseline, it’s impossible to effectively measure progress and identify areas for improvement.

Even more troubling is the revelation that the DOT has yet to finalize a Strategic Action Plan for the MICE Roadmap 2030. Industry sources claim that they have not been presented with any concrete plans, and that the DOT has only launched a MICE slogan. This lack of action is unacceptable and suggests a lack of commitment to developing the MICE industry.

Compared to its Southeast Asian neighbors, the Philippines lags far behind. Singapore, Thailand, and Malaysia all attract significantly more MICE delegates. While the TPB points to Malaysia’s landlocked status as a factor in its success, Singapore’s dominance in the region demonstrates that strategic planning, infrastructure, and effective marketing are key to attracting MICE events.

The Philippines has the potential to be a major MICE destination. With its beautiful scenery, warm hospitality, and strategic location, the country has much to offer. MICE delegates spend a considerable amount of money and tend to stay longer, making them valuable tourists. To unlock this potential, the DOT and TPB must prioritize the development of a comprehensive and actionable MICE strategy. This includes addressing safety and security concerns, gathering comprehensive data, finalizing the Strategic Action Plan, and working closely with industry stakeholders.

The MICE industry holds immense potential for economic growth and job creation. With a daily expenditure of P6,000 per delegate and an average stay of 11 days, MICE tourists contribute significantly to local economies. We can develop our MICE industry by shifting from mere slogans to effective stewardship. This involves gathering reliable data, creating actionable plans, fostering collaboration across government, and empowering the industry to compete. If the next seven years repeat the past, the country risks missing out on a straightforward opportunity for higher-value tourism. However, if we take action now, the Philippines can still harvest the ‘low-hanging fruit’ outlined in its own roadmap.

THE Philippines’ failure to address learning poverty in basic education could turn the country’s much-touted demographic dividend into a liability within the next five years, according to the Philippine Business for Education (PBEd).

PBEd Executive Director Hanibal Camua warned that unless urgent reforms are made, the country’s young workforce may end up unemployed or stuck in poor-quality jobs.

‘What we are actually confident about.the demographic dividend, within five years, it becomes a demographic deficiency. It becomes a liability,’ he said. ‘They will become the next beneficiaries of your 4Ps, AKAP, AICS, TUPAD because they will find themselves unemployed.If they are employed, they will be.in bad jobs.’

International benchmarks reflect the scale of the problem. The 2025 IMD World Talent Report ranked the Philippines 64th out of 69 economies, trailing Asean peers like Malaysia, Thailand, and Indonesia.

The report measures how countries develop, attract, and retain talent, and Camua said the Philippines’ low standing is rooted in weak foundations at the primary level.

Meanwhile, in the 2022 Programme for International Student Assessment (PISA), Filipino students ranked third lowest in science with an average score of 356, and sixth lowest in both mathematics and reading with 355 and 347, respectively, among 81 countries.

These scores showed little improvement from 2018, when the country scored 357 in science, 350 in mathematics, and 340 in reading.

A World Bank study also found that as of 2021, nine out of 10 children in the Philippines could not read and understand a simple text by age 10, a benchmark indicator of learning poverty.

Camua said this collapse in early learning is carried forward through the education system.

‘If we are not doing very well in basic education, then basically those that will proceed to senior high school and eventually to college will have low competencies. And it shows,’ he said.

Government data also reinforce the concern.

Earlier this year, the Philippine Statistics Authority’s Functional Literacy, Education and Mass Media Survey (FLEMMS) showed that while 90 percent of Filipinos aged 10 to 64 could read and write, only 70.8 percent were considered functionally literate-or able to comprehend and apply information.

This means that for every nine individuals who can read and write, two still struggle with comprehension.

Camua stressed that the problem is not attributable to a single administration, but to decades of underinvestment that weakened the country’s education pipeline.

‘It’s been a systemic negligence, I would say. It’s not attributable to this administration or the previous administration,’ he said.

The Philippines, once seen as a model for education in Southeast Asia, has already been overtaken by its neighbors.

In the latest IMD rankings, Malaysia rose to 25th, climbing eight spots, while Thailand ranked 43rd and Indonesia 53rd.

All three countries placed well above the Philippines, which continues to lag near the bottom.

Pag-IBIG Fund, the Department of Human Settlements and Urban Development (DHSUD), and the Department of Social Welfare and Development (DSWD) turned over new housing units on Monday, 29 September, to graduating qualified beneficiaries of the government’s Pantawid Pamilyang Pilipino Program (4Ps) who are also active Pag-IBIG Fund members.

The turnover ceremony, held at the Abuab Housing Project in San Mateo, Rizal, also marked the kick-off of National Shelter Month 2025, reinforcing President Ferdinand Marcos Jr.’s directive to provide safe, decent, and affordable shelter for all Filipinos. The event showcased the result of strong collaboration among national government agencies and local government units, working together to expand access to dignified housing under the Expanded Pambansang Pabahay para sa Pilipino Program (4PH).

DHSUD Secretary Jose Ramon P. Aliling highlighted the importance of inter-agency cooperation in fulfilling the administration’s housing goals.

‘President Ferdinand Marcos Jr. has directed all government agencies to help one another in making homeownership more accessible to Filipinos, especially our 4Ps beneficiaries. Today’s turnover is a fulfillment of that directive. This is the first Expanded 4PH pilot project in Region IV-A. In close coordination with DSWD, we are matching the housing needs of 4Ps families in our collective effort to uplift lives,’ said Secretary Aliling.

Meanwhile, DSWD Secretary Rex Gatchalian emphasized the long-term impact of the initiative on social development.

‘DSWD’s mandate is not only to provide relief during times of crisis but to help our fellow Filipinos break free from poverty. This is the first time we have partnered with DHSUD on a project like this, and we are grateful that our 4Ps beneficiaries now have the chance to own a home through the expanded 4PH program. Hindi na kayo uupa. May sarili na kayong tahanan,’ said Secretary Gatchalian.

Pag-IBIG Fund, represented by Deputy Chief Executive Officer Alexander Hilario G. Aguilar, affirmed that qualified members can avail of their own homes at Abuab Towers, which will offer a total of 4,330 condominium units. For a 24-square-meter unit, the monthly amortization is as low as ?6,201.81 and can be further reduced to ?4,849.38 with DHSUD’s subsidy.

More than 100 4Ps beneficiaries have already received Notices of Approval for their Pag-IBIG housing loans, with several formally receiving their units during the ceremony. Pag-IBIG Fund continues to serve members nationwide through a wide range of benefits, including savings programs, multi-purpose loans for urgent needs, and other housing modalities under the Expanded 4PH Program.

To bring services closer to the community, Pag-IBIG Fund deployed its Lingkod Pag-IBIG on Wheels (LPOW) during the event. The mobile service unit provided on-the-spot assistance for membership registration, housing loan inquiries, and other programs. The San Mateo turnover stands as a milestone in the joint efforts of DHSUD, DSWD, Pag-IBIG Fund, and the Local Government of San Mateo to realize the government’s vision of providing every Filipino family with a decent and affordable home.

An initial ?2 billion pesos estimated worth in infrastructure damages was reported by the Department of Public Works and Highways (DPWH) from the 6.9 magnitude earthquake that struck Cebu province on Tuesday evening, Sept. 30, 2025.

In a press conference, DPWH Sec. Vince Dizon said the figures could still go up as their teams continue to conduct more assessments.

Dizon told reporters that right now their priority are clearing the roads and providing access for unhampered delivery of relief goods to the affected areas.

‘We were sent here by the President [Ferdinand ‘Bongbong’ Marcos Jr.] quickly respond immediately to the needs of Bogo and the other LGUs,’ he added.

Apart from the repairs of roads and bridges, the DPWH secretary said they will send a team to assess the structural integrity of the Bogo City Provincial Hospital.

From their visit, he reported that the hospital incurred major damages in its operating room, emergency room, and the delivery room. With this, he instructed DPWH Cebu to direct all its resources to conduct repairs starting today, Oct. 2, 2025.

TOURISM

Apart from the infrastructure, Department of Tourism (DOT) Sec. Christina Frasco reported that 80 tourism establishments incurred damages and severely affected 711 tourism workers.

She asked the Department of Social Welfare and Development (DSWD) to provide assistance for them.

DOT has also facilitated for the safe return of 14 local tourists who got stranded and assisted one foreign tourist to stay in a safe place in Bogo City as the latter opted not to leave there.

‘We want to assure the local governments that the national government is here to help out. Nakighiusa mi sa mga kaigsonan sa Sugbo niining nahitabo (We are in solidarity with our brothers and sisters in Cebu after what happened),’ Frasco assured.

The DOT will also send a team to conduct assessments to the churches that were damaged in the earthquake.

Meanwhile, President Ferdinand ‘Bongbong’ Marcos Jr. is set to visit the quake hit areas in Cebu today, Sec. Dizon confirmed during the press conference.

Voting 15 affirmative with 3 negative and 2 abstentions, the Senate on Wednesday adopted a resolution asking the International Criminal Court (ICC) to consider allowing former President Rodrigo Roa Duterte to be placed on house arrest for humanitarian reasons.

Senate Resolution 144, initiated by Minority Leader Alan Peter Cayetano – Duterte’s vice presidential running mate in the 2016 elections – came days after Duterte’s daughter Sara claimed that he was ‘found unconscious’ in his detention cell in The Hague.

All nine minority senators voted in the affirmative for SR 144.

The negative votes were cast by Senators Risa Hontiveros, Bam Aquino and Kiko Pangilinan.

Senate President Vicente Sotto III and Sen. Raffy Tulfo abstained.

Explaining his vote, Sotto said, ‘I am faced with two difficult’ choices that both align with his principles: affording the former president a comfortable surroundings, while taking into consideration the plight of families seeking justice for crimes against humanity – the charge in the ICC against Duterte, for his dirty war on drugs that reportedly killed thousands without due process.

While he described himself as ‘supportive’ of any efforts to afford the former president – whom his family and lawyer claims suffers a host of medical issues, Sotto worried that ‘my choice’ in the vote on SR 144 might even further divide the nation. Hence, his abstention.

Explaining her negative vote, Hontiveros said that while the senators push for an interim release has been couched in humanitarian terms, its flipside is that it further signals the selective justice system in the country, where other suspects who have not been adjudged guilty are detained for years, despite health issues.

Hontiveros added that the resolution was premature because it was not based on facts, as there is no showing that the ICC has been remiss in caring for Duterte in detention.

Despite Vice President Sara Duterte’s claims about the ‘found unconscious’ and related circumstances, other video reports had other family members who visited the former President as saying ‘he is well, even jolly,’ at kaya pa ngang makipag-usap tungkol sa maraming topic kasama ang politika, flood control at love life [and can even discuss many topics including politics, flood control and love life],’ Hontiveros added..

Besides Alan Cayetano, those who voted for the resolution are Senators Ronald ‘Bato’ dela Rosa, Christopher Lawrence Go, Jinggoy Estrada, JV Ejercito, Sherwin Gatchalian, Imee Marcos, Robin Padilla, Rodante Marcoleta, Erwin Tulfo, Joel Villanueva, Loren Legarda, Mark Villar, Panfilo Lacson and Majority Leader Juan Miguel Zubiri.

Rep. Nathaniel Oducado of 1Tahanan Party-list has filed a proposed measure which aims to create Agricultural Pension Program for the country’s farmers and fishermen.

Oducado said that House Bill No. 5009, also known as Pensyonadong Magsasaka at Mangingisda, seeks to create an agricultural pension program to provide long-overdue social security and pension benefits to the country’s farmers and fisherfolk.

The lawmaker pointed out that despite being the backbone of national food security, farmers and fishermen remain among the poorest in the country.

He said that in 2023, poverty incidence was recorded at 27.0 percent among farmers and 27.4 percent among fisherfolk, placing them among the top three poorest sectors in the country. Unlike workers in the formal sector, they are largely excluded from the national social security system, leaving them vulnerable in times of old age, illness, or disability.

Oducado pointed out that the proposed measure will establish a comprehensive pension and social security program, while also offering an educational scholarship to the legitimate and legally adopted sons and daughters of registered farmer and fisherfolk beneficiaries – with reasonable allowances for supplies and other academic needs.

‘This aims not only to secure their present welfare but also to break the cycle of poverty by ensuring access to quality education,’ he said.

‘Farmers and fisherfolk play an essential role in our survival and national development. It is only right that the State ensures a decent quality of life, reliable retirement support, and opportunities for their children’s future,’ Oducado also said.

The bill highlights real-life stories like that of Mang Romeo, a farmer from Nueva Ecija who, at 70, continues to toil in the fields, but despite decades of service receives no retirement support from the government.

‘His experience mirrors the plight of millions who, without social protection, are forced to work well into their senior years,’ Oducado stressed.

‘With this program, we want to give dignity, security, and hope to those who feed our nation,’ Oducado added.

THE Bangko Sentral ng Pilipinas (BSP) may see faster inflation in September, but local economists believe this is not enough reason to exit its easing cycle when the Monetary Board meets next week.

On Wednesday, the BSP said it projects that September 2025 inflation will settle within the range of 1.5 to 2.3 percent. If the high end of the outlook is reached, this will be the second fastest inflation on record this year.

The Philippine Statistics Authority (PSA) will release the latest inflation print on October 7, ahead of the October 9 policy meeting at the BSP.

‘Upward price pressures for the month are likely to arise from higher prices of rice and fish. Elevated domestic fuel costs likewise contribute to upside price pressures for the month,’ the BSP said.

‘These pressures could be partially offset by the decline in vegetables and meat prices along with lower electricity rates,’ it added.

Ateneo de Manila University economist Luis F. Dumlao told BusinessMirror on Wednesday that the inflation projection was still within the 2 to 4 percent inflation target of the BSP.

This means, Dumlao said, the BSP has ‘space to be dovish.’ He said any reduction in policy rates will help support the country’s GDP growth.

Dumlao said the country’s GDP growth is growing slower than its natural growth of around 6.2 percent. Reducing policy rates can help boost the country’s economic performance this year.

‘The only way they will raise interest is if they see inflationary pressure over 4 percent the next 6 months,’ Dumlao told this newspaper.

Should the BSP decide to reduce rates next week, Jonathan Ravelas, senior adviser at professional services firm Reyes Tacandong and Co., said the impact on the economy could last for a year.

Ravelas said the Monetary Board is expected to maintain policy rates in December, unless there is another reduction in United States Federal Reserve rate cuts.

He also does not see any off cycles and increases in policy rates any time soon. However, former Socioeconomic Planning Secretary Dante B. Canlas said that if there is a surge in inflation in September due to the recent typhoons, there is a chance for an off cycle.

‘The MB [Monetary Board] may still stick to its announced plan to cut interest rates. The GDP growth is at risk; ADB [Asian Development Bank], for example, downsized already its GDP growth forecast for the Philippines,’ Canlas said.

Meanwhile, HSBC Asean economist Aris Dacanay likened the BSP’s careful calibration of monetary policy to how a driver parks his or her car.

In Filipino parlance, this is atras-abante which literally means backward-forward, actions needed to move a car to fit parking spaces with exact dimensions.

‘As the BSP nears the end of its easing cycle, finding the right monetary stance has become an exercise of making small adjustments. Like parking one’s car, calibrations to monetary policy will likely be made in increments based on marginal movements of the data on hand,’ Dacanay said. ‘We think the BSP’s monetary policy decision on the 9th of October will be a tough call between a hawkish cut or a dovish hold.’

Given this, Dacanay said he is penciling in a rate hold next week, which means BSP will keep its policy rate at 5 percent. At this point, he said, this data is limited on whether the economy is slowing.

He noted that consumer vehicle purchases are falling and government capital spending is tightening while goods exports are holding. Dacanay said domestic demand has also been firm with the imports of capital and consumer goods both steady.

Further, Dacanay said inflation risks should be considered, given that core inflation increased 2.7 percent and headline inflation at 1.5 percent. He said inflationary pressures are expected to persist due to typhoons Nando and Bualoi.

THE country’s earnings from coconut-based products surged by 44 percent to over $2.2 billion as of August, as supply constraints pushed prices.

Data from the Philippine Statistics Authority (PSA) showed that the value of coconut-based exports leaped to $2.26 billion as of the end of August from $1.57 billion a year ago.

Shipments of coconut oil led the product group among other products, as it jumped by 43 percent to $1.83 billion in the reference period from $1.28 billion last year.

Industry sources said coconut oil prices have been on an upswing, propelled by tight supply from major producing countries due to adverse weather effects and the spike in quotations for other vegetable oils.

Historical figures from the World Bank showed that the average price of coconut oil skyrocketed to a record $2,771 per metric ton (MT) in July.

If this trend continues, the Philippine Coconut Authority (PCA) said the country’s export receipts from coconut oil alone will hit a new record high in 2025.

Such an outlook stemmed from growing demand and surging prices of the tropical oil in the world market. Last year, coconut oil earnings grew to $2.22 billion.

The World Bank expects coconut oil products to average at $1,800 per MT this year, higher than the average price of $1,519 per MT posted in 2024.

Meanwhile, the country’s outbound shipments of desiccated coconut skyrocketed by 75 percent to $323.52 million in January to August from $185.15 million in the previous year.

Export revenues of other coconut products also grew by 45 percent to $75.82 million from $52.49 million.

However, earnings from the outbound shipments of copra meal or cake slumped by 45 percent to $26.49 million from $48.08 million.

The United Coconut Association of the Philippines (Ucap) recently said export receipts from coconut-based products could hit as high as $3 billion in 2026 on the back of an expected rebound in output.

Meanwhile, PSA data also indicated that the country’s exports of fruits and vegetables during the reference period jumped by 21.3 percent to $1.9 billion from $1.55 billion.

Outbound shipments of bananas led the category, rising by 29 percent to $1.05 billion from last year’s $818.37 million, based on PSA data.

Exports of pineapple juice grew by 32.5 percent to $92.1 million from $69.5 million a year ago. However, shipments of canned pineapple dropped by 0.8 percent to $141.88 million from $143.06 million.

With over 19,000 learners affected by the 6.9-magnitude earthquake that struck northern Cebu, Education Secretary Juan Edgardo ‘Sonny’ Angara assured parents and teachers that education will continue as immediate emergency measures are being addressed.

Angara stressed that the Department of Education (DepEd) will rely primarily on modular learning, the most practical mode for communities with damaged classrooms or limited connectivity.

Policies on lesson packets and the Dynamic Learning Program are also set to be finalized next week, with emergency funds for learning materials to be released right after, the DepEd said.

The DepEd Learning Systems Strand (LSS) is also coordinating with Schools Division Superintendents for context-specific interventions once immediate emergency measures are addressed.

To minimize lost school days, estimated at about one month in the hardest-hit areas, DepEd will also establish Temporary Learning Spaces (TLS) in Bogo and nearby Cebu towns to prioritize early grade learners and resume limited face-to-face classes sooner.

‘Bayanihan ang susi. Dapat mabilis ang aksyon ng lahat para mas mabilis din makakabalik ang ating mga guro at mag-aaral sa normal na klase,’ Angara said.

On Thursday, President Ferdinand R. Marcos Jr., Angara, and other national government officials on visited Bogo, Cebu to provide immediate assistance and assess the impact of the earthquake that damaged thousands of classrooms and communities.

Marcos led the situation briefing together with Angara and other Cabinet Secretaries, including Social Welfare Secretary Rex Gatchalian, , Public Works Vince Dizon, Tourism Secretary Christina Frasco, and Health Secretary Teodoro Herbosa. They also assessed the City of Bogo Science and Arts Academy, one of the hardest-hit campuses, where at least three buildings were not declared safe for occupancy.

Damaged classrooms

As of 11 p.m. on October 1, the DepEd reported 5,587 classrooms sustained minor damage, 803 major damage, and 1,187 were totally destroyed in Cebu schools. There were 950 teaching and non-teaching personnel affected.

‘Sa gitna ng trahedya, kailangan mas maagap tayong tumulong para hind rin maputol ang pag-aaral ng ating mga mag-aaral. Habang inaayos ang mga paaralan, agad tayong maghahatid ng alternatibong paraan upang may gabay, pag-asa, at direksyon silang mahahawakan,’ Angara said.

Subject to further validation by field offices, a vetted list will then be endorsed for joint DepEd-Depatment of Public Works and Highways validation to determine costs.

The department noted that reconstruction funds will be downloaded immediately.

Recovery kit

The DepEd chief also distributed nearly 90 EduKahon teaching and learning recovery kit.

DepEd also said that those in affected areas declared under a state of calamity may avail of Special Emergency Leave under CSC rules.

The DepEd added that unaffected regions are mobilizing resources to extend support, including financial aid, to affected teachers.