Category: Business Mirror

THE House of Representatives will begin on August 17 deliberations on the proposed 2027 national budget that was submitted by Malacañang on Tuesday.

Nueva Ecija Rep. Mikaela Suansing, House Committee on Appropriations chairman, said the Development Budget Coordination Committee, or DBCC, will be the first to face lawmakers.

Committee-level hearings will run until September 8, after which the proposed budget will be submitted to the plenary for deliberations.

Suansing said the House aims to approve the 2027 General Appropriations Bill, or GAB, on third and final reading by October 9.

As with the deliberations on the 2026 General Appropriations Act, Suansing said the budget process will be transparent. All hearings of the Committee on Appropriations and the Budget Amendments Review Subcommittee, or BARC, will be livestreamed.

Bicameral conference committee meetings are also expected to be open to the public.

Education gets biggest share

EDUCATION will receive the largest allocation under the proposed P7.2-trillion national budget for 2027, as the government directs more than half of its expenditure program to 10 priority agencies and sectors.

The proposed budget is 6 percent higher than the P6.793-trillion allocation for 2026 and is equivalent to 21.7 percent of the country’s gross domestic product.

Budget Secretary Kim Robert de Leon said the spending plan supports the administration’s commitments.

‘Most, if not all, of the pronouncements are properly funded in the budget,’ de Leon said.

The 10 biggest budget recipients will receive a combined P3.703 trillion, or about 51.4 percent of the total expenditure program.

The Department of Education will obtain the highest allocation at P976 billion, representing 13.55 percent of the proposed national budget while the Commission on Higher Education and state universities and colleges will receive a combined P176.5 billion, placing higher education ninth among the largest recipients.

The Department of Public Works and Highways ranked second with P644 billion, equivalent to 8.94 percent of the expenditure program.

Health ranked third with P353.8 billion. The amount covers the Department of Health, Philippine Health Insurance Corp. and specialty hospitals. Among the health spending priorities are P133.3 billion for health facility operations, P25.4 billion for the National Health Workforce Support System and P24.2 billion for medical assistance to indigent and financially incapacitated patients.

The Zero-Balance Billing Program for national and local government hospitals will receive P19 billion.

‘The Zero-Balance Billing Program not only extends to national government hospitals but also to local government hospitals nationwide,’ de Leon said.

He added that maintenance and other operating expenses for hospitals increased by 6.21 percent to P66.59 billion.

The Department of the Interior and Local Government ranked fourth with P332.5 billion, followed by the Department of National Defense with P328.8 billion.

The transportation sector, covering the Department of Transportation, Philippine National Railways, and Light Rail Transit Authority, ranked sixth with P302.2 billion.

Agriculture agencies will receive a combined P261.7 billion, placing the sector seventh. The allocation covers the Department of Agriculture, the Department of Agrarian Reform, the National Irrigation Administration, and several government corporations involved in agriculture.

The Department of Social Welfare and Development ranked eighth with P241.6 billion. Its major allocations include P99.1 billion for the Pantawid Pamilyang Pilipino Program, P51.6 billion for the Social Pension for Indigent Senior Citizens and P33.3 billion for protective services for individuals and families in difficult circumstances.

Higher education ranked ninth with P176.5 billion, while the judiciary completed the top 10 with an allocation of P86.3 billion.

Pag-IBIG Fund posted record first-half net income of ?41.35 billion in 2026, up 24% from the same period last year. The increase was supported by sustained earnings from its housing and short-term loan portfolios, higher investment income and disciplined cost management.

The performance came even as Pag-IBIG Fund lowered housing loan rates and increased its maximum housing loan amount to ?10 million. It reflects the agency’s sustained financial strength and capacity to make home financing more affordable under President Ferdinand R. Marcos Jr.’s Expanded Pambansang Pabahay para sa Pilipino (Expanded 4PH) Program.

Department of Human Settlements and Urban Development Secretary Jose Ramon P. Aliling, who also chairs the Pag-IBIG Fund Board of Trustees, said the agency’s strong financial position allows it to advance the government’s housing objectives while prudently managing and growing the savings of Filipino workers.

‘President Ferdinand R. Marcos Jr. has directed us to make homeownership more affordable and accessible to more Filipino families through Expanded 4PH. As the program gains momentum, with more housing projects taking shape and more families gaining opportunities to own homes, Pag-IBIG Fund plays a crucial role by providing affordable financing that sustains this progress. Our financial strength enables us to open more doors to homeownership and help Filipino workers fulfill their dream of having a home of their own, while prudently managing and growing the savings entrusted to us,’ Aliling said.

Pag-IBIG Fund also ended the first half with a stronger financial position, with total assets reaching ?1.32 trillion as of June 30, 2026. This was more than 6%, or ?81.95 billion, higher than the ?1.23 trillion recorded at the end of 2025.

Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta said gross income rose 19%, or ?8.58 billion, to ?52.98 billion from ?44.39 billion a year earlier. Investment income, derived mainly from bonds, preferred shares and time deposits, increased 47%, or ?2.18 billion, to ?6.85 billion and accounted for nearly 13% of gross income. She said the stronger earnings ultimately benefit Pag-IBIG members because a substantial portion of the agency’s annual net income is returned to them as dividends credited to their savings.

‘We fully recognize the trust our members place in Pag-IBIG Fund to safeguard their hard-earned savings and help their money grow. This trust is reflected in the fact that, in recent years, voluntary savings from our members have accounted for more than half of our total savings collections. That is why we continue to manage every peso with utmost prudence and seek the highest possible returns, while providing affordable home financing under Expanded 4PH. Through these efforts, we help realize President Ferdinand R. Marcos Jr.’s vision of enabling more Filipino families to enjoy better, more dignified lives through homeownership and greater financial security,’ Acosta said.

Earlier this month, Pag-IBIG Fund reported that the Commission on Audit issued an unmodified opinion on its 2025 financial statements, marking the 14th consecutive year it received the highest audit opinion. The opinion means the statements fairly present the agency’s financial position and operating results in accordance with applicable financial reporting standards.

What truly makes someone a leader? Conventional literature and global experts often draw a hard line between leadership and followership, implying that followers cannot lead. But this rigid distinction misses a fundamental truth.

Consider an employee who follows a manager’s directive but must make real-time decisions that impact customers and colleagues. Or a salesperson who adheres to company policy yet makes daily choices that either build or destroy client trust. This leads to a simple proposition: The ultimate defining factor of a leader is the ability to make decisions.

Leadership Begins with Choice

Every day presents an array of choices. We choose whether to speak or remain silent, act or wait, confront or avoid, help or ignore, and accept responsibility or deflect it. Even refusing to decide is a decision. Not every choice carries equal weight. However, the moment our choices create consequences that ripple beyond ourselves, leadership responsibility begins. The greater the consequence, the heavier the responsibility.

Followers Are Leaders in Disguise

Following is not necessarily passive; it can be an active choice. We choose whom to trust, whose direction to accept, and which ideas to support. We decide whether to comply, question, challenge, or disengage. In fact, choosing to follow can sometimes be the most responsible leadership decision available. Recognizing that someone else possesses greater expertise does not diminish your leadership-it demonstrates sound judgment. Perhaps the real question, then, is not, ‘Am I leading or following?’ Instead, ask: ‘What am I choosing, and what consequences will my choice create?’

The Accountability Filter

Simply making decisions does not guarantee good leadership. Leadership can be responsible or irresponsible. Leaders can make choices that create immense value, or choices that deeply damage people, relationships, and organizations. This distinction is particularly important in sales leadership. When matching a client with a solution, a salesperson faces a defining choice: Do I recommend what genuinely solves the customer’s problem, or do I push a mismatched product simply to hit my quota and secure a commission? Both are decisions. Both are acts of leadership. But only one represents responsible leadership.

And therein lies the deciding factor. True leadership is not found in a job title. It is revealed in the choices we make, the consequences those choices create, and our willingness to be accountable for them.

And that is precisely why decision-making is perhaps the most difficult task of leadership. Every meaningful decision carries consequences-not only for the leader, but for the people who have entrusted that leader with the responsibility to choose.

Leadership begins with the ability to choose. Responsible leadership begins with choosing well.

Alexey ‘Coach Lex’ Rola Cajilig is the President and CEO of ARCWAY Consultancy Inc., a recognized Sales Leadership Coach, Strategic Sales Operations Consultant, Christian Motivational Speaker, and Human Ecologist. As the author of The Effective Seller and Solving the Sales Puzzle, Coach Lex empowers leaders and sales professionals to turn knowledge into action, and action into measurable results. He is also the creator of ARCH Styles, a cutting-edge behavioral discovery framework that helps individuals and teams unlock their true potential and perform at their peak. Connect and collaborate with Coach Lex at arcway.ph.

The proposed out-of-court comparison and stipulation for 4,492 acknowledgment receipts (ARs) during the impeachment trial did not proceed as planned after the defense panel of Vice President Sara Duterte maintained that it would be unnecessary, and that it would be properly identified and evaluated during open court proceedings.

During the Day 14 of the impeachment trial, defense counsel Kristine Ferrer likewise, said that their next available schedule to handle the matter would be on August 14.

‘The authenticity of the exhibits is something that the court will have to decide…And the court will only decide on that after the prosecution has already submitted their offer of evidence and that would be subject for our comment…And there’s no need for us to actually compare the exhibits, just so we can arrive at the stipulation that this and that are the same…,’ Ferrer explained why they are against the necessity of comparing exhibits to expedite the proceedings.

Ferrer also questioned the competence of the Commission on Audit (COA) witness Xylene May del Campo to identify certain documentary exhibits.

Ferrer said that the defense did not stipulate to her ability to do so, nor are they aware of the full extent of her examination of the documents.

‘And also, your honor, with regard to the identification of the witness of the exhibits, that goes to the witness’ competence…we did not stipulate here in open court that the witness is competent to identify the exhibits. Your honor, kasi hindi naman namin kilala ang taga COA. Pangalawa, we don’t know the extent of her examination. Pangatlo, she just assumed the work of Mr. [Roderick] Wamil,’ Ferrer stated. Wamil, who is a lawyer, is a former COA state auditor who was one of the prosecution’s witnesses.

However, Ferrer said they will not object to the implementation of Rule 130, Section 7 of the Rules of Evidence, which allows a witness to testify based on a summary of documents.

If the prosecution follows this procedure, Ferrer explained, they can efficiently identify exhibits in a short amount of time, provided they stipulate to the authenticity of the documents, ‘but subject to cross-examination.’

A COMMISSION on Audit (COA) supervising auditor on Tuesday testified that Vice President Sara Duterte and two officials of the Office of the Vice President (OVP) were held liable for the disallowed use of P73.287 million in confidential funds in December 2022.

Xylene Mae del Campo of the COA Intelligence and Confidential Funds Audit Office (COA-Icfao) told the Senate Impeachment Court that a notice of disallowance covered confidential funds used by the OVP from December 13 to 31, 2022.

Del Campo said the documents submitted by the OVP failed to provide sufficient proof that its information-gathering and surveillance activities had been successful-a requirement for paying rewards from confidential funds.

The OVP listed 105 activities in its response, but del Campo said it did not identify specific accomplishments demonstrating the success of those operations.

‘Based on this document, there was no proof showing the success of the information-gathering activities. It also included activities conducted on December 13, 15, 17, and 18, which fell outside the cash advance utilization period of December 21 to 31, 2022,’ del Campo said.

Del Campo cited Joint Circular No. 2015-01, which sets the rules governing confidential and intelligence funds. Under the circular,

the expenditure must be approved by the agency head, supported by documents proving the success of the information-gathering or surveillance activities, and directly related to the agency’s confidential operations.

Among the activities presented by prosecution counsel Lorna Kapunan were an appreciation night for Department of Education partners and Christmas activities involving transport network vehicle services, tricycle operators and drivers’ associations, Angkas riders, food-delivery workers and persons with disabilities.

COA-Icfao also disallowed P69.78 million reportedly spent on tables, chairs, desktop computers and printers. Del Campo said the submissions did not explain how the purchases were connected to confidential activities and were not supported by official receipts or sales invoices.

She added that her draft notice of disallowance was approved by COA Assistant Commissioner Nilda Plaras, then officer-in-charge of COA-Icfao.

When asked who was held liable, del Campo identified Duterte as the head of the agency who approved the transactions, including the use of cash advances.

Also named were OVP special disbursing officer Gina Acosta, who was the payee of the checks and disbursed the cash advances, and OVP chief accountant Julieta Villadelrey, who certified that the supporting documents were complete and proper.

The OVP filed a petition for review on February 5, 2025. On April 10, 2026, the COA Proper upheld the notice of disallowance and the demand for the return of P73.287 million.

Del Campo said the OVP subsequently filed a motion for reconsideration, which remains pending before the COA.

DEL Campo said the OVP used confidential funds for Christmas events, gift-giving, tree planting and other activities not allowed under government rules.

The listed activities included Christmas events in Tondo, Manila; a meeting with a tricycle operators’ group; tree planting; wheelchair distribution; gift-giving; and medical missions.

Del Campo said these were not authorized uses of confidential funds under Joint Circular No. 2015-01.

‘Based on the joint circular, these are not included among the activities under Section 4.8 for which confidential funds may be used,’ she said.

When Kapunan asked specifically whether Christmas activities, tree planting and gift-giving were allowed, del Campo answered, ‘No.’

The auditor also questioned the dates of some activities. Several reportedly took place from December 13 to 18, 2022, although the OVP’s cash advance covered only December 21 to 31.

Del Campo said funds released on December 21 could not be used to reimburse expenses incurred before that date.

The findings led COA’s Intelligence and Confidential Funds Audit Office to issue a notice of disallowance covering P73.287 million. Of this amount, P69.787 million was reportedly spent on rewards, while P3.5 million covered tables, chairs, desktop computers and printers without proof that they were intended for confidential operations.

The OVP challenged the disallowance, but the COA Commission Proper upheld the entire P73.287-million amount in a decision dated April 10, 2026.

Del Campo’s testimony formed part of the House prosecution panel’s evidence concerning Duterte’s alleged misuse of confidential funds.

August 11, 2026 – OMODA and JAECOO Philippines reinforces its commitment to nationwide accessibility with the opening of two new dealerships in Davao City and Cebu City, in partnership with MG Gateway South Corp., expanding the footprint of OMODA and JAECOO in Visayas and Mindanao. The new facilities provide customers with full sales and after-sales services-from vehicle inquiries and test drives to ongoing maintenance support. This dual inauguration marks another milestone in the brand’s ongoing nationwide expansion, strengthening its ability to serve Filipino motorists with smarter, more accessible, and technology-led mobility.

Meanwhile, the inauguration of the OMODA and JAECOO Davao Matina dealership was attended by representatives from various financial institutions, together with representatives from OMODA and JAECOO Philippines.

With a rapidly expanding dealership network, a growing portfolio of electrified vehicles, and continued innovation in intelligent mobility through initiatives, from the AIMOGA humanoid robot to its Smart Cockpit technology released in Indonesia, OMODA and JAECOO Philippines is bringing smarter, more accessible, and technology-driven mobility closer to Filipino drivers across the country. More than just new vehicles and showrooms, these efforts translate into a seamless ownership experience-from intelligent in-car features to reliable after-sales support-ensuring that Filipino drivers can embrace the future of mobility with confidence and ease.

Philippine National Police (PNP) chief Gen. Jose Melencio Nartatez Jr. on Tuesday said the police force has committed to beefing up security measures in 108 areas tagged by the Commission on Elections (Comelec) as ‘areas of concern’ for the first-ever parliamentary polls in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) scheduled this coming Sept. 14.

‘Ensuring the peaceful elections in BARMM is a continuing process. Security measures are in place, but regular monitoring and real-time adjustments are being done based on the situation on the ground,’ he added.

The classification covers areas facing varying levels of security risks that could affect the conduct of the polls.

Comelec classifies red zones as areas marked by severe risks and previous violent incidents that may warrant increased election oversight, while orange zones are areas confronted with serious armed security challenges.

Yellow zones are areas with a documented history of election-related disturbances, while green zones are considered secure localities with no identified security threats.

Lanao del Sur has the highest number of red zones with 21, followed by Maguindanao del Sur with 11 orange zones. Maguindanao del Norte and Basilan have areas classified from low to high risk, while Tawi-Tawi remains relatively secure and stable.

‘The goal has always been to provide the safest environment for all our kababayan in the area to freely choose their next leaders, and eventually prove that BARMM is way different now compared to what it was known in the past, especially during elections,’ Nartatez stressed.

He also said the PNP will also strengthen coordination with the Armed Forces of the Philippines as part of its election security preparations.

‘We call on the public to remain alert and vigilant and report to authorities if they find any suspicious individuals or groups that may threaten security,’ he added.

Around 400 candidates are vying for 86 positions in the autonomous region’s first parliamentary elections.

The elections will be held in Basilan, Lanao del Sur, Maguindanao del Norte, Maguindanao del Sur and Tawi-Tawi, Cotabato City and more than 63 barangays in Cotabato classified as special geographic areas.

AMID concerns that the proposed tax relief package could stoke inflation, the government has assured the public that it would seek to make the measure ‘as fiscally neutral as possible.’

Department of Economy, Planning, and Development (DepDev) Secretary Arsenio M. Balisacan explained that the proposed comprehensive tax reform package, dubbed the ‘Progress Bill,’ could only add to inflationary pressures if the increase in purchasing power is not accompanied by measures to expand the supply of goods and services.

‘We will look for offsetting revenue measures because there will be foregone revenues as a result of that. That will be part of the measures to make it as fiscally neutral as possible,’ Balisacan told reporters in a recent interview.

Balisacan said the government is also working to strengthen the supply side of the economy by improving competitiveness and productive capacity, particularly by addressing bottlenecks in agriculture, logistics and energy.

Under the Promoting Growth, Revenue, Equity toward Socio-economic Sustainability (Progress) Bill, individuals earning no more than P350,000 annually would be exempt from personal income tax, raising the tax-free threshold from the current P250,000.

The second and third brackets would also see adjustments, with individuals earning between P350,000 and P450,000 paying 15 percent of the excess over P350,000. Those earning between P450,000 and P800,000 would also face a reduced fixed base tax of P15,000 plus 20 percent of the excess over P450,000.

The proposed package would also exempt qualified small businesses from corporate income tax and grant amnesty on unpaid income, estate, donor’s and value-added taxes, including related penalties and fees.

Earlier this month, the Department of Finance (DOF) said it would seek congressional approval for higher levies on sweetened beverages, tobacco and alcohol, single-use plastics and wealth to offset an estimated P326.92 billion in revenues that could be foregone due to the proposed tax relief package.

The revenue measures, which include higher taxes on sugar-sweetened beverages, distilled spirits, e-cigarettes and novel tobacco products, as well as new levies on plastic products and higher automobile taxes, are expected to generate up to P518.71 billion from 2027 to 2030.

Balisacan, for his part, said the proposed higher taxes on sweetened beverages and other affected products are unlikely to have a significant impact on overall inflation because these account for only a small share of the average household consumption basket.

‘If you average it across the entire population, the share is quite small,’ he added.

YIELDS on the 7-year Treasury bonds (T-bonds) were lower than comparable secondary-market rates as the auction drew strong demand from investors pricing in lower chances of an aggressive rate hike from the central bank as weak economic growth persisted.

The Bureau of the Treasury finally awarded in full the bids for 7-year securities as tenders reached P51.920 billion, or 1.7 times the P30 billion offering.

Total bids were much higher compared to the P18.057 billion tendered during the previous auction for the 7-year T-bonds last July 14.

The Treasury has been rejecting bids for 7-year T-bonds recently and last made a full award for the tenor last June 16 when the yield averaged at 6.779 percent due to the US-Iran interim deal back then, which lowered world oil prices.

The T-bonds, which have a remaining life of seven years and six days, fetched an average yield of 7.182 percent.

Investors’ asking yield ranged from a low of 7.1 percent to a high of 7.182 percent.

The Treasury said the average rate is ‘broadly in line with the prevailing secondary market benchmark rate’ as this is slightly lower by 1.5 basis points than the 7.197 percent yield for the 7-year tenor.

However, the average auction yield is higher than the government security’s original coupon rate of 6.625 percent.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said yields eased as investors saw less need for aggressive rate hikes.

Ricafort was referring to the signaling by Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona of reduced pressure for the central bank to raise the key interest rate as second-quarter economic growth was weaker-than-expected.

Remolona said last Monday that the BSP could still tighten monetary policy ‘as much as necessary’ to bring inflation back down to its target range of 2 to 4 percent.

July inflation eased to 6.2 percent from 6.4 percent in June, extending the downtrend from the 7.2-percent peak in April.

The Monetary Board, the highest policy-making body of the BSP, will hold its next rate-setting meeting on August 27.

Next week, the Treasury will auction 91-, 182- and 364-day Treasury bills, as well as 4-year and 10-year T-bonds.

This is part of the government’s P2.733 trillion borrowing program this year, which follows a 70:30 financing mix.

The national government’s outstanding debt ballooned to a new record high of P19.065 trillion as of end-June, or 66 percent of the gross domestic product in the second quarter.

The Philippines should ensure that its renewable energy (RE) certificate (REC) market is credible and well-regulated given its potential to become a source of capital for RE projects, according to an Asean-based management consulting firm.

Arthur D. Little Southeast Asia Principal Anna Rellama told the BusinessMirror in an email interview that a viable REC market could provide RE developers with an additional revenue stream while giving companies a verifiable way to demonstrate that the electricity they consume comes from renewable sources.

Rellama said it will also enhance the Philippines’s ability to compete for investments in data centers, semiconductor manufacturers and other sustainability-conscious industries.

‘When a data center operator, a semiconductor manufacturer or a regional headquarters chooses where to build, they run through a familiar list-cost of power, reliability of supply, land, talent, permits,’ she said.

‘Over the last few years, a new question has joined that list: if we operate here, can we credibly report this electricity as renewable, in the language our head office, our auditors and our own customers understand?’

Rellama said the opportunity is ‘significant’ because RECs effectively create a second revenue-generating product from RE.

One REC represents the environmental attribute of one megawatt-hour of renewable electricity. The certificate can be separated from the physical power and sold to a company seeking to substantiate its renewable-energy consumption.

For RE developers, she said this means that a single megawatt-hour can generate revenue from both the electricity itself and its renewable attribute.

Rellama said the additional income could prove particularly valuable for projects that are technically viable but require incremental revenues to reach financial close.

Unlike direct government subsidies, REC revenues are primarily driven by corporate demand for renewable-energy attributes. This could strengthen the financial case for additional investments in solar, wind, geothermal and hydropower projects.

‘The opportunity is not simply about creating certificates,’ Rellama said, saying that the market must be underpinned by credible buyers, standardized products, clear ownership rules and an efficient trading platform.

‘Demand aggregation will also be critical to developing sufficient liquidity and making the market attractive to both buyers and renewable-energy generators.’

Rellama said a domestic REC market could also become a competitive advantage for the Philippines as multinational companies increasingly factor access to credible renewable electricity into investment decisions.

For prospective investors, such as data centers, semiconductor manufacturers and regional headquarters, electricity costs and reliability remain fundamental considerations. But the ability to document the renewable character of electricity consumption is becoming increasingly important as companies face tougher sustainability and emissions-reporting requirements.

Rellama said the Philippines could potentially capitalize on its geothermal, hydropower, solar and wind resources, as well as existing renewable-energy market and registry infrastructure.

She said a credible REC market could ensure that a greater share of corporate spending on decarbonization remains within the Philippine economy.

Philippine exporters and business process outsourcing companies are increasingly being required by multinational customers to substantiate their electricity-related emissions claims. Initiatives and reporting frameworks such as RE100, CDP and the GHG Protocol are contributing to greater scrutiny of corporate energy consumption.

Instead of purchasing renewable attributes from overseas markets, she said companies could acquire Philippine-issued RECs generated by local renewable facilities and retire them against Philippine consumption.

‘This would provide companies with a more direct and verifiable trail for their renewable-energy claims while directing sustainability-related spending toward Philippine generators,’ Rellama said.