Category: Business Mirror

THE slower growth rate of the Philippine economy in the second quarter has reduced the pressure for the central bank to raise the key interest rate, its governor said Monday.

Following the release of the second quarter gross domestic product (GDP) data last August 7, the governor of the Bangko Sentral ng Pilipinas (BSP) was asked if the pressure to hike rates was reduced.

BSP Governor Eli M. Remolona Jr. replied to reporters, ‘Yes.’

Prior to his affirmation, however, the central bank governor explained the balancing act that the BSP-the institution whose primary goal is to keep prices stable-has to consider, against the backdrop of subdued economic activity.

‘We’re focused mainly on inflation but we also consider the output gap,’ Remolona said.

Normally, he said inflation weighs heavily on the central bank’s monetary policy decisions given its price stability mandate.

However, Remolona emphasized: ‘Growth is implied by the inflation mandate. If you can maintain price stability, that tends to sustain growth.’

In the short run, however, the BSP governor said, ‘Sometimes there are problems with growth. And we take that into account. We don’t ignore that.’

Last Friday, the Philippine Statistics Authority (PSA) reported that the growth of the Philippine economy in the second quarter slowed to 2.3 percent from the 2.8 percent in the first quarter.

The latest reading was the slowest since the first quarter of 2021, when the economy contracted by 3.8 percent.

Excluding the pandemic period, it was the weakest growth recorded since the fourth quarter of 2009, when gross domestic product (GDP) expanded by 1.8 percent.

Two days before the release of the growth print or last Wednesday, the PSA reported that headline inflation eased to 6.2 percent in July from 6.4 percent in June.

The latest reading extended the downtrend from the 7.2-percent peak in April. Inflation eased to 6.8 percent in May and 6.4 percent in June, bringing the year-to-date average to 5 percent.

When asked, however, if the easing of headline inflation for the third straight month would rule out further rate hikes, Remolona said: ‘Hindi masyadong downtrend, eh. Yung core [inflation] one data point lang yung binaba. Yung headline bumaba ng ilang beses na.’

Core inflation, which strips out selected volatile food and energy items, eased to 4.2 percent in July from 4.4 percent in June.

According to Remolona, core inflation is a ‘good focus’ instead of the headline inflation.

‘Because the core [inflation] we can control, but the headline inflation is impacted by many supply shocks,’ added the BSP governor, partly in Filipino.

Both headline and core inflation, however, remained above the central bank’s 2 to 4 percent target range.

Further pressed if the Monetary Board would deliver one last rate hike at its upcoming August 27 rate-setting meeting, Remolona, who also chairs the MB said, ‘As much as necessary to bring inflation down to target.’

Analysts’ take on recent signal

Sought for comment, local experts shared mixed views on what the BSP chief might have meant as he agreed that the pressure of the central bank to raise the key interest rate has been reduced.

For one, Bank of the Philippine Islands (BPI) Senior Vice President and Lead Economist Emilio S. Neri Jr. told the BusinessMirror: ‘Gov was probably just shooting from the hip. I would rather wait until the August 27 meeting is close to hear his most recent comments before I share our opinion.’

Meanwhile, Jonathan L. Ravelas, senior adviser at Reyes Tacandong and Co., told this newspaper that the central bank may be delivering fewer hikes moving forward.

‘Balancing act between growth and falling inflation. My take is less hikes. But looking at 25 basis points hike on the 27,’ he also told this paper.

With the low domestic demand, analysts said over the weekend that there may no longer be ‘much room’ for the central bank to raise the key interest rate beyond the August 27 rate-setting meeting of the Monetary Board.

For one, United Kingdom-based research firm Capital Economics said the continued weakness of the economy means the case for further hikes is less clear-cut.

But with inflation still well above target, Capital Economics expects one more quarter-point hike on August 27, before it calls a halt to its hiking cycle.

The BSP has raised the key interest rate by a total of 50 basis points since the start of the conflict in the Middle East, delivering two separate quarter-point rate hikes at the Monetary Board’s rate-setting meetings held on April 23 and June 18.

These policy actions brought the Target Reverse Repurchase (RRP) Rate to 4.75 percent.

During its June 18 meeting, the Monetary Board decided that monetary policy tightening was ‘warranted’ to keep inflation expectations anchored and mitigate the risk of second-round effects.

‘The measured monetary policy action will also complement fiscal measures in supporting steady consumption and strengthening business sentiment,’ the central bank also said in a statement on June 18.

After more than a year since their last EP release, SunKissed Lola returns with ‘Edi Magalit Ka,’ a warm, playful, and honest new single that builds on the heartfelt storytelling behind previous fan favorites such as ‘Pasilyo,’ ‘Paki Sabi,’ and ‘Makalimutan Ka.’

Turning a familiar Filipino phrase into a song about love, patience, and choosing the relationship over the argument, the track marks a fresh yet familiar chapter for the band.

Known for heartfelt songs about love, longing, and the emotions people carry through relationships, SunKissed Lola enters a new chapter with a track that feels both familiar and refreshing. ‘Edi Magalit Ka’ takes its title from a phrase often heard in everyday conversations, especially between couples and friends, but the band gives it a softer meaning. Instead of sounding dismissive or prideful, the song becomes an affectionate way of saying that even when things get difficult, love is still there.

‘It’s a song about relationships,’ vocalist Laura Lacbain shares. ‘Hindi maiiwasan ang away sa relationship, pero hindi pa rin mawawala ang love. Susuyuin pa rin sa huli.’

Vocalist and guitarist Alvin ‘Bino’ Serito describes the track as a ‘loving anthem,’ saying that even when someone is upset, the feeling behind the song remains tender. ‘Even if you’re mad with your special someone, at the end of the day, they’re still your favorite person to come home to,’ he says.

The song first began in 2021, but its earliest version carried a more prideful tone. As the track developed, the band softened the lyrics and gave the song more emotional openness. According to vocalist and guitarist Dan Ombao, Bino helped shape the confession-like parts of the song and added the line ”Di ba?’ to make the message feel gentler.

Bino explains that the heart of the song lies in choosing love over ego. ‘No one has to win,’ he says. ‘I will always choose the relationship over the argument.’

That emotional shift became central to the final version of ‘Edi Magalit Ka.’ What could have been read as stubborn or sarcastic became something more sincere.

The title itself invites curiosity because it depends on how the listener understands it.

‘The title was intriguing in itself,’ Laura says. ‘You will be curious. Pwedeng i-send sa jowa. You really need to listen to the song to understand the context.’

Musically, ‘Edi Magalit Ka’ also reflects a more relaxed and intentional side of SunKissed Lola. Dan shares that the song started as an acoustic piece before he brought it to the rest of the band. From there, the arrangement came together naturally, with each member adding their own parts.

For bassist Danj Quimson, the goal was to keep the sound simple and laid-back so the lyrics could stand out. ‘We all united to make it sound laid-back, simple, and we wanted to highlight the lyrics of the song,’ he shares.

Compared to some of their earlier songs, which leaned into more unpredictable arrangements, ‘Edi Magalit Ka’ was designed to feel lighter, warmer, and easier on the ears.

‘For this one, we made it simple for the audience,’ Bino says. ‘We made it magaan sa tainga.’

Dan adds, ‘That’s also what the song asks for. A very simple, refreshing, and warm song.’

For drummer Genson Viloria, the song’s charm comes from how instantly familiar it feels. He shares that when he first heard it, he thought it sounded like a cover because of how catchy and natural it was.

While the track still carries the easy-listening quality that listeners have come to love from SunKissed Lola, the band sees it as a more vulnerable and straightforward release. For Dan, ‘Edi Magalit Ka’ stands apart because of how honest it feels. Laura also sees it as a fresh direction for the band, especially because it focuses on being in a relationship and working through the struggles that come with it.

‘It’s the comeback of SunKissed Lola,’ Laura says.

As the band approaches its fifth year, the release of ‘Edi Magalit Ka’ also marks a more mature and intentional era for the group. Danj shares that he felt a change in the band during the recording process, with each member becoming more focused on serving the song in the best way possible.

Bino says the band has returned to its roots with more conviction. ‘We know our strengths, and now we are able to maximize it,’ he shares. ‘We are more intentional in releasing this song.’

Ultimately, SunKissed Lola hopes ‘Edi Magalit Ka’ makes listeners smile, feel kilig, and maybe even rethink the way they handle small conflicts with the people they love.

‘We want them to feel what we felt the first time we played the song,’ Bino says. ‘We hope it makes them smile, the way kung paano namin siya niyakap sa umpisa.’

Laura adds that she hopes younger listeners, especially those new to relationships, realize that love also means learning how to work things out. ‘Sana kiligin din sila,’ she says. ‘Sana our young listeners na bago pa lang sa relationship, ma-realize nila na they need to work it out.’

With ‘Edi Magalit Ka,’ SunKissed Lola opens the door to more music, more stories, and a deeper connection with their listeners. Fans can expect more songs, more content, more gigs, more tours, and a closer look at the members beyond their roles in the band.

‘We want to be part of more people’s stories,’ Bino says.

‘Edi Magalit Ka’ is out on all major streaming platforms.

EXECUTIVES of Visa Inc. and USSC Money Services Inc. (UMSI) launched last Tuesdaya payment solution they said would enable micro-sized, small-scale, and medium-sized enterprises (MSMEs) in the Philippines to turn smartphones into payment acceptance devices, removing the need for traditional point-of-sale terminals.

Explaining the concept of accepting payments through smartphones instead of POS terminals, UMSI Chief Marketing Officer J. Richard Soriano said that ‘as you can see in a restaurant, the business model for most of those business terminals, you also have to pay a rental fee for those devices; plus, of course, the compliance requirements. This one [the solution called ‘U Accept’], it’s really, you already spent on a phone.’

‘I just have to put an app there and suddenly with a tap of the card, you can accept the payment. So, again, it’s not for everyone. It’s really just for business owners,’ Soriano told reporters on the sidelines of the launch.

According to him, ‘U Accept’ is integrated in UMSI’s digital platform for entrepreneurs and small businesses called ‘uGrow.’

A statement provided by the company read that the solution helps remove barriers to digital acceptance and helps MSMEs participate ‘more fully’ in the digital economy.

Visa Philippines Country Manager Jeffrey Navarro explained, however, that the solution is not designed to compete with POS. Instead, this payment solution intends to onboard businesses into digital transactions, Navarro said.

‘What we’re looking for is a graduation model, meaning this is the basic-it gets you into digital transactions,’ he told reporters.

‘You would see that there there is a cap. So, once demand has been developed, and you always reach that cap, then probably the next proposition for you is, we graduate towards the SMB program, which can qualify now for a POS device. So, what we’re trying to do is, get you started first,’ Navarro added. ‘When you graduate, it means business is doing great for you.’

For a smartphone to be ‘eligible’ or to start accepting contactless card payments, Visa Head of Product Michelle F. Mascariñas explained that the smartphone needs to be NFC-enabled.

‘It works on Android and iOS devices as well. So those are the basics which I think almost everyone, even in this room, have,’ added Mascariñas.

According to Visa, MSME owners can activate ‘U Accept’ within the ‘uGrow’ app to accept contactless payments including cards and pay-by-link, making digital acceptance ‘more accessible and inclusive’ without the need to invest in additional proprietary hardware.

As a customer-centric innovation, the solution was designed around the realities of running a small business, read documents provided by Visa executives. Business owners and customers can use the solution to transact with confidence and ease with the security, reliability, and dispute protections expected from Visa card payments, the document read.

With U Accept, MSME users can also send digital receipts to buyers via email and check transaction history, which ‘complements’ the uGrow app’s other features, such as sales monitoring and inventory management, according to Visa executives.

PH1 World Developers topped-off of Tower 1 of Avesta Residences on August 4, 2026, located in the City of Imus, Cavite-marking a significant construction milestone for its pioneering development under the expanded Pambansang Pabahay Para sa Pilipino (4PH) program. The ceremony commemorated the completion of the structural framework for the first building of the project’s multi-tower development.

‘For both PH1 World Developers and Megawide Construction, the topping off after less than 10 months from the start of construction conveys a clear message-we can deliver using our engineering expertise and pre-cast technology. We have a long way to go but it is always good to start on the right footing,’ said Edgar Saavedra, Chairman and CEO of Megawide.

Avesta Residences serves as PH1 World Developers’ first project under the government’s Expanded 4PH Program-the national housing initiative aimed at addressing the country’s housing backlog through collaborative efforts between the public and private sectors.

The milestone follows the successful Mega-Unit Draw conducted for Tower 1 beneficiaries held at the New Imus City Hall in December 2025 and reflects the project’s continued progress from planning to on-site construction, bringing future homeowners one step closer to homeownership.

‘Our projects would not have come to fruition without the support and collaboration from our valued stakeholders and government partners. We warmly welcome these types of private and public cooperation as we push forward for more 4PH developments from PH1 and Megawide Construction,’ said Gigi Alcantara, President of PH1 World Developers.

Following the launch of Avesta Residences, PH1 World Developers expanded its participation in the program through additional developments in Dasmariñas and Bacoor in Cavite, as well as in Caloocan, further augmenting the government’s efforts to increase the supply of quality, affordable, and accessible housing across the country. More than just buidling homes, PH1 World Developers ensures Filipinos experience First-World Living in the Philippines.

OF all the tasks financial executives could hand over to automation, checking business documents and compliance requirements came out on top, scoring 4.4 out of 5, according to an internal industry poll by IDfy Technologies (Philippines) Inc. and Mastercard Inc.

During ‘The Anatomy of Merchant Trust’ roundtable in Manila, executives from the banking, fintech and payments sectors discussed how financial institutions can make it easier to verify and onboard micro-sized, small-scale and medium-sized enterprises (MSMEs).

The focus on document checks reflects a broader challenge facing financial institutions as they try to bring more businesses into the digital economy while keeping fraud and compliance risks in check, executives said.

According to those who participated in the poll, traditional merchant verification remains fragmented, often relying on paper-based checks and physical audits that can slow down onboarding and make it harder for institutions to assess smaller businesses with limited credit histories.

For IDfy, this condition can lead to broad risk policies that exclude legitimate merchants from formal financial services.

‘Because traditional merchant identity verification remains fragmented and unverified at the micro-level, it trickles down to ecosystem-wide trust issues that compel institutions to enforce rigid, blanket risk policies,’ the company said.

The poll revealed that participants see automating document verification and compliance checks could allow banks and fintech firms to assess businesses more quickly while applying risk controls based on individual merchant profiles.

The issue extends beyond getting a business through the door. As digital payments expand, financial institutions also face threats such as forged documents, deepfakes and fraud committed after a merchant has already been approved.

This has increased the need for continuous monitoring rather than relying solely on checks conducted during onboarding.

‘Merchant trust is no longer a one-time verification exercise-it is a continuous lifecycle,’ IDfy Philippines Country Head Raghuraman Chandrashekhar said.

Chandrashekhar said financial institutions need to move away from fragmented onboarding processes and combine identity verification with alternative data and real-time monitoring as digital payments grow.

‘The future of financial inclusion depends on enabling MSMEs to be onboarded quickly and safely at scale,’ he added.

The need for better verification also ties into the financing gap faced by smaller businesses, many of which lack conventional credit records.

Financial institutions are increasingly looking at alternative information, including digital payment records, utility payments and transaction histories, to assess the creditworthiness of merchants.

These records can also be used in lending models that increase credit limits as businesses build a stronger transaction history.

The industry estimates that such approaches could help expand formal financing to more than one million underserved merchants nationwide.

Moreover, digital payments have continued to gain ground in the Philippines, with Bangko Sentral ng Pilipinas data showing that digital payment channels such as QR Ph have surpassed 57 percent adoption.

Mastercard Philippines Country Manager Jason Crasto said merchant trust would require closer coordination among banks, payment providers, fintech companies and technology firms as more businesses move into digital transactions.

‘As more businesses participate in the digital economy, the industry needs to strengthen collaboration across banks, payment providers, fintechs, and technology stakeholders,’ Crasto said.

‘Each stakeholder brings unique capabilities, perspectives, and expertise to the table. Through stronger public-private collaboration, shared intelligence, and advanced risk solutions, we can build a more secure, scalable, and inclusive digital ecosystem that empowers Philippine MSMEs to grow with confidence,’ he added.

BASICALLY, the simplest way to explain financial equilibrium is to think of being able to match your cash outflows with you cash inflows.

As an example, if your only source of income is what your account gets credited for your salary and you are able to pay off all your expenses from that ac-count with practically nothing left behind for investments and other unplanned or unprogrammed expenses then you are in a state of financial equilibrium.

There are those that think that being in financial equilibrium is a good thing. After all, many people are in a negative cash flow position and end up having to borrow money and make use of their credit card just to make ends meet. I agree that drowning in debt is indeed worse than being in financial equilibrium, which brings me to the point that you really should not be happy being just in financial equilibrium. Being in financial equilibrium is being in the proverbial ‘isang kahig, isang tuka’ situation where you just make enough to live day to day.

You have to set your goals higher than just meeting your day to day expenses. If you cannot find a way to increase your income, then find a way to reduce your expense by prioritizing what you are spending on. Go through what your expenses are and focus on those that you can do without. Do you really need your daily Starbucks coffee before getting to the office or could you live off on hav-ing brewed coffee at home? Do you need to have a fine dining weekly date with your wife, or can you make to with a movie night?

It is imperative that you realize that you will have unavoidable expenses specially when you are starting off a family like having hospital expenses when you start getting children, tuition fees and other school expenses, and unforeseen expense from ageing parents, facing certain health issues, or a sudden setback in your career that puts your promotion on hold or worse losing your job. What do you do then? It is in your best interest to do something about it as early as possible, rather than wait for these things to overwhelm you.

Getting a higher paying job either through a promotion or moving into a new job is not as easy as it sounds. There are too many factors involved that are beyond your control or influence. Which makes cutting down on your expenses more doable. The whole point is to reduce your expenses to allow you to have a net savings. Once you have savings, a whole new world of opportunities opens up for you. Depending on how much you are able to save, the opportunities improve the bigger your savings are. As an example, bank time deposit rates becomes higher as the amounts gets bigger. A P10,000 time deposit will give you a lower interest rate than a P1-million time de-posit. Likewise, a P100-million time deposit will give you a higher interest rate than a P1-million time deposit.

Investment opportunities expand as your capital increases, such as fixed income bonds or listed equities. You could also look into investing in real estate to give you rental income and capital gain. You could also explore going into your own business or partner up with the right people. Financial equilibrium should only be your starting point where your ultimate goal is achieving financial freedom. How much is that? That is where sky is the limit.

The views and comments of Dr. George S. Chua are his own and not of the BusinessMirror or the Financial Executives Institute of the Philippines (Finex). The author was 2016 Finex president and a life member, 2010 to 2020 Federation of Philippine Industries president and an entrepreneur. Dr. Chua is a Fellow at the Institute of Corporate Directors and a Professorial Lecturer 2 at the University of the Philippines Diliman and BGC campuses. He is also vice-chairman of the Market Governance Board of the Philippine Dealing and Exchange Corp. Comments may be sent to georgech-uaph@yahoo.com or gschua@up.edu.ph.

Accounting firm PandA Grant Thornton (Punongbayan and Araullo) said it signed a memorandum of understanding (MOU) with the Philippine Economic Zone Authority (Peza) to strengthen knowledge-sharing initiatives and capability-building programs for Peza employees, registered business enterprises and members of the ecozone industry.

The partnership will focus on PandA Grant Thornton’s role as a knowledge partner of Peza, through the Peza Academy, on matters relating to accounting, audit, taxation, compliance, advisory and other business-relevant topics.

Backed by the accounting firm’s experience in helping businesses address regulatory and operational challenges, the collaboration aims to support Peza’s development programs and equip them with practical insights to strengthen standards compliance, business resilience and sustainable growth.

The agreement was signed by Romualdo V. Murcia III, chairman and managing partner of PandA Grant Thornton and Tereso O. Panga, Director General of Peza.

‘By sharing our experience and expertise, we hope to contribute to Peza’s continuous efforts to empower its registered enterprises, enhance their competitiveness, and create lasting value for the broader business community,’ Murcia said.

‘Beyond enhancing individual capabilities, this partnership contributes to PEZA’s broader mission of fostering a competitive and investment-friendly business environment. A well-equipped workforce and well-informed enterprises translate into better services, stronger governance, and greater confidence among investors-qualities that reinforce the Philippines’ position as a preferred investment destination,’ Panga said.

The accounting firm said it will deliver learning initiatives that translate technical knowledge into practical guidance for employees, supporting the shared goal of building more informed, prepared and resilient enterprises.

CEBU CITY-The Office of the Ombudsman is set to scrutinize some P60 billion worth of flood-control projects implemented in Cebu over the past six years, as Ombudsman Jesus Crispin Remulla raised questions over whether the projects were properly designed and executed or were tainted by corruption.

Remulla said the amount was based on the office’s initial accounting of flood-control spending in Cebu, with a significant portion going to the province’s Seventh District and about 25 percent to a single contractor.

‘That should be a lot of money to control the flooding,’ Remulla said during a news conference here.

However, he noted that flooding remained a recurring problem in the province, particularly after recent rains, prompting the office to examine whether the projects were technically deficient or whether corruption was involved.

‘We have to look at what’s happening. Is it the design? Is it the execution? Or is it just corruption?’ Remulla said.

He said the investigation would cover flood-control projects in the province, as well as Cebu City, including projects affecting several local governments.

The Ombudsman for the Visayas is expected to file cases soon, Remulla said, although he stressed that the agency would first have to establish sufficient evidence.

‘We always go by the evidence,’ he said, adding that the office could not simply file cases or order people jailed without strong evidence that could withstand scrutiny in court.

Ghost projects, substandard work

REMULLA said the Ombudsman would also verify reports of alleged ghost flood-control projects, including one in barangay Singsing in Balamban that was being disputed by a former congressman.

The agency will use digital tools and project coordinates to determine whether projects actually exist at their reported locations and whether the structures comply with their specifications.

He said investigators would also examine the possibility of projects being counted more than once or locations being altered in project records.

‘We will look at all possible violations,’ Remulla said.

‘So it’s possible that it’s a ghost. But we will have to check and verify and validate,’ he added.

The investigation will also look into whether flood-control structures were built according to contract specifications.

Remulla cited sheet piling as an example, saying the national specification calls for 14-meter sheet piles in certain flood-control structures. He said investigators would determine whether the specified depth was appropriate and whether contractors actually complied with it.

He recalled findings from investigations in Bulacan where 14-meter specifications were allegedly reduced to four meters, leaving a substantial portion of the required structure unbuilt.

For Cebu, he said investigators would similarly examine whether projects were built according to their contracts rather than relying solely on what could be seen on the surface.

Contractors, bidding under scrutiny

ASIDE from project implementation, the Ombudsman will examine the contractors involved in the projects, possible rigged bidding and the alleged practice of awarding contracts without competitive bidding.

Remulla said lifestyle checks would also be conducted on district engineers and other Department of Public Works and Highways (DPWH) engineers, although he cautioned against focusing exclusively on government personnel.

Contractors would be examined alongside government officials as part of the investigation, he said.

The Ombudsman will also look into the ‘no-bidding phenomenon’ and possible rigging of procurement processes.

Remulla acknowledged that investigating flood-control projects is complicated because of the volume and technical nature of government contracts.

He said artificial intelligence could assist investigators in reviewing documents, but could not completely replace human examination of contracts and evidence.

‘Proving our cases is always possible. But it’s not as easy as it seems. It’s easy to conclude. But to prove is harder,’ Remulla said.

20 more lawyers

TO strengthen the agency’s investigative and prosecutorial capacity in the region, Remulla said he had committed to add 20 lawyers to the Ombudsman Visayas office.

The lawyers would be involved in prosecution, fact-finding and preliminary investigations.

He said strengthening the regional office was necessary given the volume of cases and the need to build evidence-based cases before filing them in court.

Remulla emphasized that the Ombudsman should not be used to ‘weaponize’ investigations against individuals.

‘What we want to happen is that cases are filed because there is evidence against those who we go up against,’ he said.

Greater transparency

REMULLA also reiterated his push for legislation requiring greater transparency in government transactions from the barangay level up to national agencies.

He said government bidding processes should be digitally recorded and made accessible to the public, including through digital platforms that would allow citizens to monitor government contracts and transactions.

The Ombudsman said he had already discussed the proposed transparency measures with the Speaker and the Senate President.

He said the proposed reforms would cover government hiring, salaries, contracts, permits and business and licensing transactions at the local-government level.

Remulla argued that existing digital technology, including mobile phones, closed-circuit television cameras, artificial intelligence and the internet, could make greater transparency possible without requiring prohibitively expensive systems.

He said transparency should not stop at national government agencies but should extend to local governments, where corruption could also begin.

Conflict of interest

BEYOND implementation of flood control projects, Remulla said the Ombudsman would investigate other government programs and alleged schemes involving the misuse of public funds.

He identified conflict of interest as one of the agency’s major concerns, particularly situations where public officials and contractors have overlapping interests.

He said the Ombudsman would examine instances where politicians and contractors are closely linked, noting that public office should not become a means of serving private interests.

‘We have to start with conflict of interest. Everywhere in the country. We have to return to decency,’ Remulla said.

Remulla added the Ombudsman’s broader objective was not simply to pursue individual cases but to help restore public confidence in government and create a culture where corruption carries a greater certainty of punishment.

He said the agency expects the next three years to be focused heavily on filing, investigating and prosecuting cases involving corruption.

‘It’s not about targeting people. It’s about targeting a change in our society,’ Remulla said.

For Cebu, however, the immediate focus will be determining what happened to the billions of pesos spent on flood-control projects-and whether the spending delivered the protection it was supposed to provide.

NOMURA Global Markets Research has cut its 2026 growth forecast for the Philippines following a slowdown in the second quarter, as foreign research firms see only a gradual recovery in the second half amid weak investment and still-elevated prices.

Nomura on Sunday lowered its full-year gross domestic product (GDP) growth forecast to 3.8 percent from 4.6 percent, although it still expects economic activity to improve in the latter half of the year.

This comes as the Philippine economy grew by 2.3 percent in the second quarter, slower than the 2.8-percent expansion in the first three months of the year and the weakest quarterly growth since the first quarter of 2021.

Excluding the pandemic period, it was the slowest expansion since the fourth quarter of 2009, when GDP grew by 1.8 percent.

This brought average growth in the first half to 2.6 percent, less than half the 5.4 percent recorded in the same period last year.

‘We cut our 2026 GDP growth forecast to 3.8 percent from 4.6 percent, which still pencils in an improvement in H2. We maintain our call for two more 25-basis-point Bangko Sentral ng Pilipinas’ hikes this year,’ Nomura said.

On a seasonally adjusted basis, the economy expanded by 0.6 percent quarter-on-quarter in the second quarter, slower than the 0.9 percent growth in the first quarter.

Nomura said the further moderation indicated that the economy continued to lose momentum rather than begin to recover from the prolonged slowdown associated with the flood-control corruption controversy.

‘This suggests the impact of the war in Iran has likely exacerbated some lingering spillover effects on private sector spending from the sharp fiscal tightening and associated governance concerns, hurting domestic demand overall,’ it added.

Infra-led recovery

ANZ Research and Capital Economics likewise expect growth to improve in the coming quarters, although both see constraints to a stronger rebound.

ANZ said a recovery in public infrastructure spending beginning in the third quarter could help revive capital formation, which emerged as one of the biggest drags on second-quarter growth.

‘Steady normalization of public infrastructure spending will be key for a meaningful recovery in GDP growth in the upcoming quarters,’ ANZ Research said.

The Department of Economy, Planning, and Development (DepDev) earlier said it was banking partly on a rebound in infrastructure spending after the Department of Budget and Management began releasing mobilization funds for 2026 projects toward the end of June.

The Department of Public Works and Highways also started awarding contracts in June and July, which DepDev expects to support a pickup in public construction beginning in the third quarter and gain momentum in the succeeding months.

Capital Economics, meanwhile, expects only a modest improvement after the weak first-half performance.

‘Growth should improve a little from here, but the recovery will be very gradual. The recent falls in oil prices, if sustained, will help reduce inflation and boost the purchasing power of consumers. But the corruption scandal is unlikely to go away,’ it explained.

The research firm said President Marcos’s renewed emphasis on combating corruption in his fifth State of the Nation Address (Sona) suggests that tighter scrutiny surrounding public projects could continue to weigh on investment.

It added, however, that continued economic weakness could put pressure on the government to ease the constraints on public investment arising from its anti-corruption drive.

Capital Economics expects GDP to grow by around 3 percent this year, while ANZ forecasts a 3.9-percent expansion.

The Development Budget Coordination Committee (DBCC) in late June lowered its 2026 growth target to a range of 3.5 to 4.5 percent from 5 to 6 percent, citing weaker-than-expected economic performance following the flood-control controversy and the economic fallout from the Middle East conflict.

Growth targets for 2027 to 2030 were likewise reduced to 5 to 6 percent. The previous targets were 5.5 to 6.5 percent for 2027 and 6 to 7 percent for 2028 to 2030.

The Philippines has suspended imports of live animals and selected animal products from seven countries following confirmed outbreaks of foot-and-mouth disease (FMD).

The Department of Agriculture (DA) said the restriction covers Azerbaijan, Bahrain, Cyprus, Iraq, Israel, Kuwait and Palestine.

Under Department Circular 39 signed by Agriculture Secretary Francisco P. Tiu Laurel Jr., imports of live swine, cattle, water buffaloes and other FMD-susceptible animals from the affected areas are prohibited.

The ban also covers fresh skeletal muscle meat, casings, tallow, hooves, horns and animal semen originating from the seven countries.

An official report from the Food and Agriculture Organization of the United Nations confirmed outbreaks of the FMD virus serotype SAT1 in the affected countries.

The cases were validated through laboratory testing in coordination with the World Organization for Animal Health’s (WOAH) reference laboratory network.

‘The Philippines has worked hard to protect its livestock sector from devastating animal diseases. Acting swiftly against emerging risks is essential to safeguarding food security, protecting farmers’ livelihoods and preserving public confidence in our food supply,’ the DA chief said.

Products classified by WOAH as ‘safe commodities,’ however, may still enter the country subject to strict import requirements. These include ultra-high temperature milk and dairy products, heat-treated canned meat, protein meal, gelatin and certain processed hides and leather products.

Such products must meet prescribed veterinary certification and processing standards.

‘We are taking a science-based and precautionary approach. While we remain committed to facilitating safe trade, protecting the health of our livestock industry must always come first.’

FMD is a highly contagious disease affecting cloven-hoofed animals such as cattle, pigs, goats, sheep and buffaloes.

While it poses no public health risk and is not considered a food safety concern for humans, outbreaks can disrupt livestock production, raise production costs and inflict heavy losses on farmers.

Veterinary quarantine officers have been instructed to stop and confiscate prohibited shipments from the affected economies arriving at Philippine ports.

The Philippines was nearly brought to its knees by the devastating FMD outbreak in 1995. It reached epidemic proportions, spreading to 27 provinces and setting the highest number of recorded outbreaks in one year at 1,553.

At the peak of its outbreak in 1995, the DA noted that FMD caused an estimated P2 billion in direct losses to the hog sector. The government had to spend hundreds of millions of pesos to bankroll measures that sought to eliminate FMD in commercial and backyard hog farms.

It took six years for the Philippines to wipe out the disease and obtain FMD-free without vaccination status from WOAH.