Category: Business Mirror

THE Department of Labor and Employment (DOLE) has filed a motion for reconsideration seeking to lift the injunction that halted the P85 minimum wage increase in Metro Manila.

In its motion before Pasig Regional Trial Court Branch 152, DOLE asked the court to dismiss the case for lack of jurisdiction and failure to state a cause of action.

It also sought the denial of the petitioners’ application for a writ of preliminary injunction.

DOLE maintained that the petitioners bypassed the administrative remedies provided under the Labor Code before bringing the dispute to court.

Labor Secretary Francis N. Tolentino said the department is challenging the ruling on several grounds, including the court’s jurisdiction and its treatment of Articles 123 and 126.

‘We filed a motion for reconsideration to strongly challenge the decision of Branch 152,’ Tolentino said.

‘We are basically saying that the court has no jurisdiction, administrative remedies were not exhausted, Article 126 was disregarded, and compliance with Article 123 was not established,’ he added.

Under Article 123, appeals involving regional wage orders are brought before the National Wages and Productivity Commission (NWPC).

Meanwhile, Article 126 prohibits courts, tribunals or other entities from issuing temporary restraining orders or injunctions against proceedings before the NWPC or regional wage boards.

At stake is Wage Order No. NCR-27, which would grant an additional P85 in daily pay to minimum wage earners in Metro Manila.

Around 1.1 million workers were expected to benefit from the increase, which was scheduled to take effect last month before its implementation was stopped by the court.

DOLE said the wage order went through the prescribed tripartite wage-setting process involving labor, employers and government.

Tolentino filed the motion on Monday together with Assistant Solicitor General Jane E. Yu and officials from DOLE and the NWPC.

Implementation of the P85 wage hike remains suspended while the court considers DOLE’s bid to overturn the injunction.

Shell Pilipinas Corp. (SPC) said it posted a net loss of P2.7 billion in the first half, a reversal of last year’s P970-million net income, due to inventory losses, compressed margins, and soft demand.

‘The first half tested the resilience of energy supply chains across the industry. Our priority was clear: keep fuel available, support our customers and trade partners, and help keep the Philippine economy moving,’ said Lorelie Quiambao Osial, president and CEO of Shell Pilipinas.

During the period, the oil firm generated P2.4 billion in free cash flow driven by strong liquidity and supply reliability despite significant market volatility.

‘By leveraging Shell’s global trading and supply network, local infrastructure, and strong customer relationships, we maintained reliable supply through one of the most volatile market environments in recent years.

While these conditions materially affected earnings, improving trends in May and June reinforce our confidence in the resilience of our business as we navigate a still-volatile environment,’ added Osial.

The oil firm said it faced ‘severe’ margin compression and a net loss due to the Middle East conflict-driven oil price volatility and a weak peso. Despite these, Shell Pilipinas said it maintained fuel availability by leveraging its integrated supply chain and active government coordination.

While high prices caused a 4 percent decline in mobility volumes, commercial fuels saw a 4-percent growth, while lubricants provided stable earnings.

‘As we move into the second half, our focus is to restore profitability, strengthen cash generation, and further improve Shell Pilipinas’ competitiveness. The actions we have taken position us to continue serving the country’s energy needs while creating long-term value for our shareholders,’ Osial added.

Last March, SPC said its net income soared by 69 percent year-on-year to P2.1 billion in 2025 due to higher sales. Its core earnings jumped 28 percent year-on-year to P3.3 billion.

The country’s second largest oil firm also ended 2025 with a free cash flow of P2.1 billion, reversing the P1.6-billion deficit it recorded in the previous year.

Income from operations also went up to P6.46 billion from P6 billion.

SPC’s fuels business delivered a 2-percent volume growth for the full year, supported by stronger contributions from B2B and commercial segments, a ‘healthier’ product mix, and ‘more efficient’ supply chain.

ONLY around 30 to 35 percent of priorities identified by Regional Development Councils (RDCs) are eventually reflected in the General Appropriations Act (GAA), according to the Department of Economy, Planning, and Development (DepDev).

Socioeconomic Planning Secretary Arsenio M. Balisacan said the share remains low as the government seeks to better connect regional investment priorities with the national budget process.

‘Of the RDC priorities identified at the various regional levels, of those priorities, about 30 to 35 percent [are] reflected in the GAA… so it’s a bit low,’ Balisacan said on Monday.

He said raising the proportion to around 66 percent would already represent a ‘major improvement.’

The issue was raised during the Development Budget Coordination Committee (DBCC) briefing amid questions over how projects endorsed through the local and regional planning process are eventually selected for inclusion in the National Expenditure Program (NEP).

Budget Secretary Kim Robert C. de Leon said that under the proposed 2027 budget, expenditure ceilings are currently set only at the department or agency level.

This means agency central offices determine which projects are ultimately included in their proposals submitted to the Department of Budget and Management (DBM), even after projects have gone through the RDC process.

RDCs are tasked with reviewing and endorsing priority programs and projects in their respective regions.

De Leon said RDCs are required to accomplish Budget Form C to establish that proposals submitted for consideration have gone through regional vetting.

He acknowledged, however, that completing the requirement alone does not ensure that projects eventually included in the NEP are aligned with priorities identified at the regional level.

DBM and DepDev are now working to improve the linkage between investment programming and budget preparation, including by harmonizing their respective calendars and submission portals.

De Leon said one option under consideration is to issue agency budget ceilings earlier in the process.

If implemented, agency central offices could use the ceilings to provide RDCs with indicative amounts that may be allocated to each region before budget proposals are finalized.

This could give regional councils a clearer idea of the amount available when identifying and prioritizing projects for inclusion in agency submissions.

The proposed changes are among the measures being considered for succeeding budget cycles as DepDev and DBM seek to increase the share of regional priorities reflected in the national budget.

ABS-CBN Corp. saw its net loss more than double in the first semester, as the absence of election-related advertising, weaker consumer sentiment, and a thinner slate of films and live events dragged down revenues.

The listed media conglomerate reported a consolidated net loss of P1.83 billion for the January-to-June period, wider than the P852-million loss it booked in the same period last year.

Consolidated revenues fell 17 percent to P6.88 billion, with the company attributing most of the drop to its cable TV and broadband businesses. Its core content production and distribution segment generated P5.76 billion in revenues, 9 percent lower year-on-year, as the comparable 2025 period benefited from political advertising tied to the midterm elections. The company said global developments this year have also weighed on consumer sentiment and the domestic economy.

Excluding political advertising and one-off items in both years, the segment’s recurring net loss narrowed by 1 percent, while recurring earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 2 percent.

The first half of 2025 was likewise boosted by BINI’s sold-out concert at the Philippine Arena and the box-office performance of ‘My Love Will Make You Disappear,’ events that had no equivalent this year. ABS-CBN said the decline was partly offset by higher consumer sales and growth in international syndication and co-productions.

Consolidated operating expenses improved by 5 percent, or P482 million, to P8.46 billion.

The company expects revenues to recover in the second half.

Last week, ABS-CBN announced that it is raising P6 billion in new equity from members of the Lopez family and a private investment firm, fresh capital meant to shore up a balance sheet battered by six years of losses since the network went off free television.

Crème Investment Corp., Mantes Corp., and Presta Holdings Company Inc.-representing three branches of the Lopez family-committed to subscribe to a combined P2.2 billion worth of ABS-CBN shares using personal resources. IandC Holdings Corp., a 100-percent Philippine-owned private investment holding company, will take the largest tranche at P3.5 billion, while Lopez Inc. will subscribe to an additional P300 million.

Proceeds will strengthen the company’s balance sheet and fund its transformation into a content-led media and entertainment business. The investments are subject to definitive agreements and regulatory requirements.

The infusion is ABS-CBN’s biggest capital event since Congress rejected its franchise renewal in 2020.

MINDORO Island is gearing to transition to renewable energy, starting with the town of Mansalay, Oriental Mindoro, to champion accessible and affordable electricity for the people of Mindoro.

Mindoro Island is shared by two adjoining provinces-Oriental and Occidental Mindoro.

To jumpstart its transition to renewable energy, various groups spearheaded by the Renew Mindoro will hold a caravan in Mansalay, Oriental Mindoro in collaboration with environmental advocates, the Church, civil society, financing institutions, renewable energy suppliers, and local government, towards solarizing vulnerable communities in Mindoro.

The event on September 5 at the Mansalay Municipal Gymnasium involves key solar power suppliers and private financing institutions. REnew Mindoro said the caravan will provide opportunities to engage with solar power providers and to engage with financiers.

‘Mindoro’s communities are vulnerable to [expensive] and unreliable electricity because of their dependence on diesel, which accounts for the vast majority of energy capacity in the island. The Department of Energy (DOE) indicates that the island has renewable energy potential at 343 MW, but our study with Climate Analytics shows a potential of 1,140MW for rooftop solar power alone. That potential for renewables must be maximized, because solar is the most practical and affordable alternative for powering Mindoro,’ said Gerry Arances, Executive Director for the Center for Energy, Ecology, and Development (CEED).

REnew Mindoro is pushing for the declaration of Mansalay as potentially the first ‘renewable energy municipality’ in the province.

Mansalay is poised to be the frontrunner for the island province’s energy transition, with REnew Mindoro noting that it will be the role model for other municipalities to make the shift.

‘Mansalay is only the beginning, with the Parish of St. Catherine of Alexandria using a solar power system since March. Parishes across the island are also switching to solar under our Diocesan Energy Transition Roadmap. The Church has been steadfast in strengthening the momentum to protect Mindoro’s ecology and to ensure affordable, clean, and democratized energy for all, especially the vulnerable and indigenous communities across the island,’ said Bishop Moises Cuevas of the Diocese of Calapan.

REnew Mindoro said their push for renewables shall likewise promote the protection of local wildlife and ecosystems surrounding the province.

‘By switching to solar and ridding our diesel dependence, we let go of expensive and dirty electricity. The Verde Island Passage [VIP] has endured all manner of pollution spewed by fossil fuel use. When we transition to renewables, we thus protect the marine wildlife and the coastal communities that consider the VIP as their home and livelihood,’ said Rev. Fr. Edwin Gariguez, Lead Convenor of Protect Verde Island Passage (Protect VIP).

To further strengthen Mindoro’s switch to renewables, the Mansalay local government unit (LGU) has committed to solarizing the municipal complex, public markets, the fishing port, and barangay halls. Their contributions shall showcase to the public and to other LGUs that renewable energy equates to lower costs, reliable electricity, and better public service delivery.

MARK ‘MAGNIFICO’ MAGSAYO squares off with American Andres Cortes in a lightweight clash under the Ryan Garcia-Conor Benn World Boxing Council (WBC) welterweight title fight on September 12 at the T-Mobile Arena in Las Vegas, Nevada.

The 31-year-old former World Boxing Council (WBC) featherweight champion told the BusinessMirror that he has researched his opponent deep enough to get a win and a possible world title shot and the Zuffa lightweight crown.

‘I am really expecting this to happen after my last victory against Feargal McCrory,’ Magsayo, 29, said. ‘But this fight is so crucial because I really want to have a chance at the Zuffa belt and I and we do not expect this fight to be so easy.’

The Zuffa Boxing belt is a proprietary championship title introduced by Dana White and Turki Alalshikh-it rejects traditional boxing sanctioning bodies in favor of a streamlined, UFC-style promotional hierarchy where champions advance to fight for the Ring Magazine belt.

Cortes packs a 25-0 record with 13 knockouts and relies on great timing and spectacular footwork although he lacks world championship experience unlike Magsayo.

Magsayo-29-2 won-lost with 19 knockouts-has been chasing world titles in the featherweight and super featherweight divisions but found his groove in his lightweight debut that resulted to a fifth-round technical knockout against Ireland’s Feargal McCrory last April 5 in Las Vegas.

International matchmaker Sean Gibbons said Magsayo could be back in the world title picture if Magsayo wins. Josef Ramos

‘Mark Magsayo has impressed Zuffa promotions last fight and gave this opportunity for him. I believe he would continue fighting at his best to get a world title shot again,’ Gibbons said.

Magsayo-trained by Marvin Somodio-and wife Frances established the Magsayo Foundation to provide scholarships for kids both in the US and the Philippines.

THE Senate, which on Friday opened hearings on the proposed Pax Silica initiative, will exercise strict oversight over the ambitious, albeit controversial project touted to help the country transition to industrialization and create thousands of jobs along the way.

Senate President Sherwin Gatchalian gave the assurance at the weekend to ensure that Pax Silica becomes a transformative economic opportunity for the country while ensuring concerns over its environmental impact are sufficiently addressed.

‘It is important for the Senate to have oversight and ensure that we respond to the risks and concerns,’ Gatchalian said.

The Pax Silica initiative, he added, should deliver long-term economic gains for the country without compromising environmental safety, constitutional sovereignty, and the rights of local communities, including farmers and Indigenous Peoples.

While the initiative presents a ‘once-in-a-lifetime’ opportunity for the country to shift from low-value semiconductor assembly and vulnerable entry-level Business Process Outsourcing (BPO) jobs to high-value technology sector that could generate 200,000 direct jobs and up to 800,000 job opportunities during its construction phase, such economic prospects should be balanced with uncompromising vigilance.

He said Senate oversight would be maintained throughout all phases of the project.

The Senate Environment committee on Friday opened hearings on the ambitious Pax Silica complex in Central Luzon, touted to prime the economy and provide jobs, but saddled with criticism that it would pollute and displace communities and disrupt already scarce water and energy supplies in the region.

Officials of the Bases Conversion and Development Authority (BCDA) assured senators that all investors in the massive initiative are aware of the regulatory guidelines for their projects and have been told no shortcuts will be tolerated.

The investors have included projects to source their own power and water supplies, officials added.

‘We hope that these hearings can be the venue for full transparency,’ Sen. Paolo Benigno Aquino said in his opening statement at the hearing, presided over by Environment panel chairman Sen. Raffy Tulfo.

While Tulfo began committee hearings in consideration of the timeline-a planned signing in November-several other committees, including Aquino’s Committee on Trade and Industry, had expressed interest to look into the matter and ease people’s worries about Pax Silica’s adverse impacts.

Government has said the core of the undertaking is the setting up of mineral processing facilities that will end the country’s failure to use its abundant resources to process ores and be able to sell high-value products, instead of merely exporting low-value, unprocessed minerals.

Aquino asked officials to answer questions on how many farmers will be affected, how many indigenous peoples (IP) communities could be banished from their ancestral domain.

‘With our goals towards industrialization, providing more jobs, advanced manufacturing,’ there is a need ‘to make sure that there’s a better way forward when it comes to progress in our country.’

It is vital to modernize key industries, he acknowledged, ‘but we must make sure no one,’ especially the ‘most vulnerable and marginalized’ like farmers and the IP, are not left behind

Sen. Francis Pangilinan acknowledged the ‘potential opportunities’ earlier cited by Gatchalian, especially the chance to graduate from being mere exporters of raw minerals to being part of advanced manufacturing and artificial intelligence or AI enterprises.

He said the prospect of creating thousands of quality jobs and boosting the country’s position in strategic global supply chains is a decisive consideration in Pax Silica.

But, he added, there is a need to ensure this early that the grand promises don’t turn out to be empty ones. The promised technology transfer, the safeguards against pollution, displacement and environmental disruptions must be carried out.

THE Philippines has been tagged by the Trump administration as a potential weak link in the rerouting of China-linked goods into the United States, putting the country under greater scrutiny as Washington ramps up its crackdown on tariff evasion.

In a report released last week, the White House placed the Philippines among more than 40 countries and economies it identified as potential links in what it called the ‘Great Transshipment Scam,’ a system allegedly allowing Chinese goods to slip into the US market through third countries under different national identities.

The Philippines was included in the report’s third tier, or the group of ‘Small, Opportunistic Chinese Targets,’ which the White House said have lower absolute volumes of potentially illegal transshipment but possess characteristics that could make them attractive rerouting points.

These include low-cost labor, free zones, port access, bonded warehousing, assembly capabilities, preferential US market access or limited customs enforcement, according to the report.

The report also specifically grouped the Philippines with Bangladesh, Cambodia, Laos and Sri Lanka as Southeast Asian ‘micro hubs’ for light assembly, export processing, relabeling and re-export of China-linked goods.

The White House’s classification does not by itself establish that Philippine companies are illegally transshipping Chinese goods. Rather, it identifies the Philippines as a potential node based on its trade and logistics characteristics.

For the US, the concern is that Chinese-origin inputs could undergo limited processing, assembly, testing, packaging or relabeling in a third country before being exported to the US, without undergoing the substantial transformation generally required to change their country of origin for customs purposes.

The report estimates that potential transshipment or related trade-transfer activity could involve between $40 billion and $303 billion worth of goods globally each year, potentially costing the US between $19 billion and $26 billion in tariff revenue annually.

The crackdown comes as Washington continues to target China-linked supply chains following the imposition of US tariffs on Chinese goods in 2018.

For the Philippines, however, the designation adds another layer of scrutiny to an already closely watched trade relationship with the US.

The country is separately subject to a 12.5-percent additional tariff under a US Section 301 action over its failure to prohibit and effectively enforce a ban on forced-labor imports, which took effect in July.

For its part, the Department of Trade and Industry (DTI) has been seeking the removal of the duty, while Philippine agencies have also moved to strengthen controls on goods produced using forced labor.

Also last month, the DTI, the Department of Labor and Employment and the Department of Finance signed a joint administrative order establishing rules for investigating and prohibiting the import of goods produced wholly or partly through forced labor.

On the other hand, during a visit to New Clark City in May, US Undersecretary of State for Economic Affairs Jacob Helberg told reporters that Washington would continue to push for fair competition and reciprocal trade while seeking stability in its relationship with China.

‘We want to make, we continue to stand for fair competition and for our companies’ reciprocal trade. And so our economic policies haven’t changed,’ Helberg said.

Mynt Inc., the parent company of fintech behemoth GCash, may attract at least P5 billion in investments from its more than 90 million users once it kicks off its initial public offering (IPO).

Philippine Stock Exchange President and CEO Ramon S. Monzon said acquiring shares from Mynt would be easy for GCash account holders as investing is just a few clicks away via its application.

‘The investment in the Gcash IPO, we hope to get to encourage more stock trading among retail investors,’ Monzon said during the PSE STAR investor day.

For foreign participation in the local market, Monzon said the bourse is making sure that its platforms are updated with the latest features to provide more products with them.

‘I think the key component or ingredient for their investing decision, what really is the factor behind their decision to invest in a market or in a country is really confidence. So we really have to build up their confidence not only in the market but the whole Philippine economy.’

The PSE is expecting only two IPOs this year-the P92.3-billion capital raising for Mynt and PLDT Inc.’s Vitro REIT (real estate investment trust) valued at around P24.2 billion.

The bourse is also expecting one listing by way of introduction, that of PNB holdings Corp. scheduled for September.

‘Companies will continue to need capital. So, they will continue to try to raise capital in the equities market. Sometimes these efforts are postponed because of the volatility of the market. But inevitably, they will have to come back and raise capital from the equities market. They cannot be financing their operations purely on that,’ Monzon said.

He said there is also a pending application from a company that has no listed common shares on the PSE to list some P9 billion in preferred shares. This has never been done before, according to the PSE.

For next year, the PSE is expecting the merged tollway firms of San Miguel Corp. and Metro Pacific Tollways Corp. to conduct a maiden share sale, which could be another ‘blockbuster’ offering.

‘So, while we cannot control external factors like the geopolitical problems or even domestic problems like confidence or lower GDP growth rates for the first two quarters, as an exchange, I think our mission is to make sure that our market remains up to date in its technology,’ Monzon said.

He said PSE also continues to find ways to make it easier for companies to list and introduce more products that can attract more retail investors. ‘And basically, again, make sure that we have a deeper capital market.’

THE Office of the Vice President secured the release of P125 million in confidential funds in late 2022 using a physical and financial plan that did not identify specific surveillance operations, locations, costs or numerical performance targets, according to testimony before the Senate Impeachment Court on Monday.

Gina Acosta, the OVP’s former special disbursing officer and the official identified as accountable for the plan, acknowledged that the document placed the entire allocation under the broad heading ‘Good Governance Program’ and contained only generic descriptions of how the money would be used.

Private prosecutor Atty. Amando Virgil Ligutan initially established that the plan was a prerequisite for release. After he asked whether confidential funds could be released without a physical and financial plan, Acosta replied: ‘That is correct, Your Honor.’

The circular requires confidential and intelligence fund allocations to be supported by a physical and financial plan indicating the proposed amounts for programs, activities and projects. It also requires cash advances to be used for specific legal purposes connected with confidential or intelligence activities and calls for expenditure details to be reflected in accomplishment reports.

Acosta said she prepared and signed the OVP plan with inputs from then-security officer Col. Raymund Dante P. Lachica, whom she described as the person with operational expertise.

‘I worked with our security officer, Your Honor, because I asked him for inputs or guidelines in preparing the physical and financial plan,’ she said.

Under questioning, Acosta said the ‘Good Governance Program’ covered various OVP initiatives, including free rides, tree planting, and financial and medical assistance. She said she had no personal knowledge of whether studies had been conducted in developing the program.

Asked why the plan did not contain an itemized list of activities, Acosta said: ‘I did not include the details, Your Honor, because the Joint Circular does not state that they have to be itemized.’

The plan referred to areas where surveillance would supposedly be conducted and monitored and to the percentage of activities implemented without security incidents. But no numerical targets were entered for either measure.

Asked whether the actual figures appeared in the plan, Acosta answered: ‘Not yet, Your Honor.’

According to her testimony, the more specific activities appeared later in the accomplishment and liquidation documents submitted after the funds had already been released.

Acosta also confirmed that the physical and financial plan had been presented to Duterte.

‘It was approved,’ she said, when asked whether the Vice President approved the program.

Acosta separately testified that tree planting was among the activities treated as part of the OVP’s good-governance program and funded through confidential funds. She maintained that activity details were contained in attachments eventually submitted to COA and were based on information supplied by Lachica.

Her testimony came after the impeachment court formally declared her a hostile witness.

Presiding Officer Sen. Francis ‘Chiz’ Escudero granted the prosecution’s motion after Acosta confirmed that she remains employed by the OVP in a coterminous position and that Duterte is her superior.

Escudero also cited the position Acosta had taken in a counteraffidavit filed before the Office of the Ombudsman, in which prosecutors said she maintained that Duterte had complied with rules governing confidential funds.

The hostile-witness declaration allows Ligutan to use leading questions during his examination, although Escudero stressed that misleading questions remain prohibited. Acosta is the first witness formally declared hostile in Duterte’s impeachment trial.

The prosecution said it intends to establish that Duterte directed Acosta to encash P500 million in OVP confidential funds in four tranches and turn over the cash to an OVP security officer, and that the money was not properly liquidated. Those assertions remain allegations being presented by the prosecution and are subject to testimony and cross-examination by the defense.

The P500 million forms part of the P612.5 million in confidential funds covered by Article I of the impeachment complaint-P500 million released to the OVP and P112.5 million released to the Department of Education while Duterte was education secretary.

Earlier Monday, the impeachment court also took judicial notice of official House records related to congressional investigations into the confidential funds after Duterte’s defense agreed to stipulate to their custody and transmission.

Escudero clarified that the court was recognizing the existence of the documents and their inclusion in official House records, not accepting the truth or relevance of their contents.

Lachica’s role

Acosta also testified that Lachica provided key inputs for the OVP’s confidential fund plans, expenditure details, and liquidation reports, but his role was not identified in documents submitted to the COA.

Acosta said Lachica, then OVP security officer, provided guidelines on confidential operations and the categories of expenses for the funds.

Although Acosta was listed as the accountable officer and preparer of the 2022 Physical and Financial Plan, she said the document was based on Lachica’s operational inputs. She also testified that liquidation reports relied on utilization reports submitted by Lachica.

Acosta said she accepted all reports provided by Lachica because he had direct knowledge of implementing confidential activities.

For the 2023 plan, she again sought Lachica’s guidance in preparing the program details.

Asked whether any OVP documents submitted to COA had showed Lachica provided the inputs and implemented the activities, Acosta answered: ‘None.’