Category: Business Mirror

MORE than 734,000 workers have received temporary employment under the government’s emergency jobs program as the Department of Labor and Employment (Dole) continues to prepare vulnerable sectors for the projected El Niño, officials told senators on Tuesday.

During a Senate committee briefing, Labor Undersecretary Carmelita Torres said the department has sustained the implementation of interventions under the Dole Integrated Livelihood and Emergency Employment Program (Dileep) through its regional offices.

‘The department continues to implement its employment facilitation, livelihood, and worker protection programs nationwide,’ Torres told lawmakersThe Dileep covers the Tulong Panghanapbuhay sa Ating Disadvantaged-Displaced Workers (Tupad) and the Dole Integrated Livelihood Program (DILP), which provide temporary employment and livelihood assistance to disadvantaged, displaced and climate-vulnerable workers.

From January to June, the department extended livelihood grants worth P707 million to 35,037 beneficiaries under the DILP.

Over the same period, 734,540 workers received temporary wage employment through Tupad, with assistance reaching P5.2 billion.

Marginalized farmers and fishermen continued to account for a significant share of the beneficiaries as the government seeks to cushion sectors most exposed to the effects of prolonged dry spells.

As of July 21, the department had provided livelihood assistance totaling P218 million to 9,274 farmers and fisherfolk, while 162,724 others received emergency employment amounting to P1.1 billion.

Beneficiaries were assigned to labor-intensive community projects, including community gardening, tree planting and the repair of public facilities, which also support local climate adaptation efforts.

Torres said the department is, likewise, strengthening partnerships with government agencies, local government units and other stakeholders to ensure that assistance reaches affected communities.

‘The department, likewise, continues to strengthen its convergence initiatives with partner agencies, local government units, and other stakeholders to ensure that employment and livelihood assistance are delivered promptly to communities affected by the impacts of the El Niño phenomenon,’ she said.

Among the department’s convergence initiatives is a partnership with the Department of Agriculture and the National Irrigation Administration that combines emergency employment with climate-resilient agriculture interventions, particularly the declogging and rehabilitation of secondary irrigation canals.

The initiative is currently being piloted in the Cordillera Administrative Region, Central Luzon, Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon). Mimaropa (Mindoro, Marinduque, Romblon and Palawan), Zamboanga Peninsula and Caraga.

As of July 21, 10,683 beneficiaries had completed work under the Tupad component of the project, with 10,400 already receiving wages totaling P70 million, while another 763 beneficiaries continue to undertake work supported by P13.9 million in grant assistance.

Apart from livelihood and employment assistance, Torres said Dole continues to enforce occupational safety and health measures by reminding employers to comply with Department Order 252, Series of 2025, including the adoption of heat stress prevention measures such as adequate ventilation, access to potable drinking water, appropriate rest periods, workplace risk assessments, information campaigns and, where applicable, flexible work arrangements to protect workers from heat-related illnesses.

THE two simultaneous inflation shocks hounding the Philippines-the larger-than-expected wage hike and renewed external pressures from volatile oil markets and a weaker peso, could delay the return of inflation to target, a former deputy governor of the Bangko Sentral ng Pilipinas (BSP) warned.

‘Together, these could delay the return of inflation to target, underscoring the importance of maintaining credible monetary policy and keeping inflation expectations well anchored while addressing the structural sources of inflation through broader government action,’ Former BSP Deputy Governor Diwa Guinigundo said in a report on Wednesday.

Just as the central bank began re-evaluating its inflation outlook for the next two years in light of the ‘unexpectedly’ large minimum wage increase in the National Capital Region (NCR), Guinigundo pointed out that renewed geopolitical tensions in the Middle East presented another source of inflationary risk: a weaker peso driven by ‘heightened’ global uncertainty.

‘Taken separately, each development would already warrant close monitoring,’ Guinigundo said.

As these recent developments occur simultaneously, however, the former BSP deputy governor said they present the central bank with a ‘more complicated’ policy environment, in which domestic and external inflationary pressures could ‘reinforce one another and delay the return of inflation to target.’

In an earlier interview with reporters, BSP Governor Eli M. Remolona Jr. said the recently approved P85 daily minimum wage hike for Metro Manila workers may have ‘significant’ inflationary pressures.

However, he said the ‘sensitivities’ of the recent wage adjustment may have to be further looked into.

‘Significant siya pero medyo hindi ko alam ‘yung sensitivities. Titignan pa namin. We’ll have to do the numbers. This is unusual,’ the central bank chief told reporters two weeks ago.

In its latest Monetary Policy Report, the central bank said its wage increase assumption for 2026 was 6.7 percent which is way below the actual minimum wage hike or the P85 approved by the NCR wage board-equivalent to a 12.23-percent increase.

According to Guinigundo, given that the NCR accounts for the largest share of the country’s economic output and formal employment, developments in its labor market ‘inevitably’ carry national macroeconomic implications.

The former BSP deputy governor also pointed out that BSP’s preliminary estimate suggests that every additional peso in minimum wage raises inflation by about 0.0047 percentage point.

‘On that basis, the full P85 adjustment could add roughly 0.4 percentage points to inflation through its direct or first-round effects alone,’ Guinigundo pointed out.

The greater concern, however, lies beyond these ‘immediate effects,’ the former BSP deputy governor said.

‘Wage adjustments in other regions, higher production and transport costs, and possible increases in food and service prices could generate second-round e?ects that become considerably more persistent,’ Guinigundo stressed.

More importantly, he said if households and firms begin to expect permanently higher inflation, then wage and price adjustments may become ‘mutually reinforcing, creating the very wage-price spiral that central banks seek to avoid.’

According to the former BSP deputy governor, these concerns arise at a time when inflation has already ‘become more entrenched.’

Citing actual inflation figures, he said headline inflation averaged 4.8 percent during the first half of 2026, significantly above the 1.8 percent recorded during the same period last year.

Meanwhile, inflation for the bottom 30 percent of income households averaged an even higher 5.5 percent, underscoring the ‘disproportionate burden’ borne by lower-income families.

Both figures, he pointed out, remain well above the government’s inflation target of 3 percent, plus or minus one percentage point.

At the same time, core inflation, which excludes volatile food and energy prices, has remained elevated, suggesting that price pressures are becoming ‘increasingly’ broad-based rather than confined to a few supply-driven items, Guinigundo pointed out.

On top of the larger-than-expected wage hike in NCR, the former BSP deputy governor said the domestic inflation outlook is ‘further complicated’ by emerging pressures on the exchange rate and higher global oil prices.

‘The policy challenge confronting the BSP is therefore no longer confined to a single inflation source. It must now manage the interaction between stronger domestic cost pressures arising from wage adjustments and imported inflation transmitted through exchange rate depreciation and higher global oil prices,’ Guinigundo said.

‘These forces may reinforce one another, making inflation more persistent and more di?cult to bring back within target,’ he also noted.

Should these shocks intensify or prove ‘more prolonged’ than currently anticipated, Guinigundo said the return of inflation to the BSP’s target range could be pushed ‘even further into the future.’

‘The consequences would extend beyond price stability. Persistent inflation erodes real household incomes, weakens consumption, which accounts for more than three-fourths of Philippine GDP, and ultimately restrains broader economic growth,’ the former BSP deputy governor emphasized further.

During the briefing on the monetary policy stance of the BSP last June 18, Zeno Ronald R. Abenoja, BSP Deputy Governor for the Monetary and Economics Sector unveiled BSP’s inflation forecast estimates: For 2026, he said it will be an average of 6.4 percent.

For 2027, he said inflation would be about 4.5 percent while for 2028, he said it could hover around 3.1 percent.

BENEFIT claims paid by the Philippine Health Insurance Corp. (PhilHealth) are rising faster than its premium collections, figures in the first semester of the year show.

Total benefit claims paid rose by 44.53 percent to P210.09 billion from January to June from P145.36 billion in the same period in 2025, data from the government-run health insurer showed.

Private health facilities received the bulk, or P123.25 billion, of benefit claims, which increased year-on-year by 44.35 percent from P85.38 billion in 2025. Payments to government health facilities, likewise, jumped by 44.78 percent to P86.84 billion from P59.98 billion in the same period last year.

Premium contributions of members rose by 32.41 percent to P67.733 billion in the first quarter of this year from P51.152 billion in the same period last year, data from PhilHealth also showed.

Meanwhile, benefit claims expenses were higher at P97.216 billion, up by 32.33 percent from P73.464 billion a year ago.

The fast climb of PhilHealth’s payments is driven by the state health insurer’s tack to ramp up benefit packages and widen healthcare coverage for its members.

Last year, PhilHealth rolled out a program that offers an expanded package of accessible health services, including primary care checkups, medicines, basic laboratory tests and screening. This year, the state health insurer improved its benefit packages for leptospirosis and maternity care for non-hospital and outpatient facilities.

This dynamic was already flagged by Valerie Gilbert T. Ulep, senior research fellow at state-run think tank Philippine Institute for Development Studies.

Ulep has said that the government must do its part in sustaining PhilHealth as slower economic growth could undermine the insurer’s finances.

She noted that weak economic growth threatens premium collection growth and the government’s fiscal capacity to subsidize healthcare.

Still, PhilHealth President and CEO Edwin M. Mercado has said that the insurer will maintain the current premium contribution rate mandated by law.

Currently, the premium contribution rate is capped at 5 percent of a member’s monthly basic income. PhilHealth did not increase the rates this 2026, as this is the final scheduled adjustment under Republic Act 11223 or the Universal Health Care Act.

Such stance should be seen with Philhealth’s finances in mind.

In the first quarter of the year, the PhilHealth posted a net loss of P22.845 billion, 27.61-percent higher than the P17.902-billion loss the state health insurer suffered a year ago.

To note, the insurer’s expenses of P99.893 billion exceeded its income worth P77.047 billion in the first quarter.

Its reserve fund stood at P308.950 billion as of end-March.

The defense panel of Vice President Sara Duterte on Wednesday argued that her controversial remarks against President Ferdinand Marcos Jr., First Lady Liza Araneta-Marcos and former House Speaker Ferdinand Martin Romualdez may have been taken out of context.

During the ninth day of the Senate impeachment trial, defense counsel Mark Vinluan asked National Bureau of Investigation (NBI) Director Melvin Matibag whether Duterte had said her remarks were made in jest.

‘Didn’t Vice President Sara say her statement in jest?’ Vinluan asked during cross-examination.

Matibag replied that he could not speak on Duterte’s state of mind.

Vinluan then suggested that the NBI may have interpreted the Vice President’s remarks without considering their full context.

Matibag disagreed, saying law enforcement authorities could not simply disregard statements made by the country’s second-highest official.

‘It would be difficult for us in law enforcement to simply take for granted the statement of the Vice President,’ he said.

The defense also raised remarks made by Davao City Mayor Sebastian ‘Baste’ Duterte during a Maisug rally, where he called for the President’s head, arguing that they constituted protected political speech.

‘As a lawyer and former dean, are you aware that political speech is constitutionally protected?’ Vinluan asked.

Matibag replied that constitutional protection depends on the nature of the speech.

‘And unless we are under martial law again, Mayor Baste is free to express his dissent against the government,’ Matibag said.

Vinluan pointed out that the Philippines is not under martial law.

Matibag responded that while freedom of expression is constitutionally guaranteed, it is not absolute.

‘Freedom of expression also has its limits. If it violates the law, it is no longer protected by the Constitution,’ he said.

Later in the proceedings, Vinluan sought to strike one of Matibag’s earlier responses after asking whether the NBI’s ongoing investigation could result in another case against the Vice President.

‘Are you saying that once you reach your findings, because we are all waiting for that, is it correct to say that you will have another case against Vice President Sara?’ Vinluan asked.

The court did not immediately rule on the defense’s motion to strike Matibag’s answer.

Modern Shang welcomes the rainy season with a comforting new addition to its menu: 3 kinds of congee (only P268). Designed to bring warmth and comfort with every spoonful, whatever the weather, the collection features flavorful varieties: Pork Congee, Century Egg Congee, and Beef Congee.

Slow-cooked to achieve a silky, velvety texture, each bowl is hearty and satisfying. It is the perfect companion for rainy days and cozy moments alike.

VICE President Sara Duterte, invoking security considerations, wants all food served to her defense team supplied by a caterer accredited by her office. In a letter to Senate President Sherwin Gatchalian, she also asked the Senate to shoulder the costs of the catering services of her impeachment trial defense, support staff and witnesses.

Duterte, in her one-page letter dated July 7, stressed that the request is necessary to safeguard the safety and well-being of the defense team, staff members, and the witnesses to ensure their full and effective participation, and support the orderly and uninterrupted conduct of the proceedings.

‘In light of the unique circumstances of the trial and the need to safeguard all individuals directly participating in the proceedings, the Office of the Vice President respectfully requests the implementation of the following arrangements throughout its duration: That all food and beverage intended for the members of the defense team, support staff and witnesses shall be served exclusively in their designated holding room,’ the one-page letter read.

Duterte has requested that all food and beverage shall be sourced, prepared, and served exclusively by the accredited caterer of the Office of the Vice President.

‘As these requirements are required solely in connection with these proceedings, the OVP respectfully requests that the Senate shoulder the reasonable costs of food and beverage and catering services for the defense team, support staff and witnesses,’ she added.

US Secretary of State Marco Rubio warned Wednesday that Iran’s attempt to control transit through the Strait of Hormuz could set a precedent that threatens other regions, including Southeast Asia.

‘If we allow Iran to dictate passage in Hormuz, we create a dangerous precedent that could spread to other regions, including here in Southeast Asia,’ Rubio told Asean ministers during the opening of the Asean Post Ministerial Conference.

Rubio warned that allowing Iran to set rules in Hormuz could embolden similar actions elsewhere, including Asia’s strategic waterways.

‘Of all the regions in the world, the one I don’t need to teach about the importance of freedom of navigation in international waterways, it is this region,’ he added.

Although Rubio did not directly mention them, Southeast Asia’s most critical waterways include the South China Sea and the Strait of Malacca, both vital to global shipping and regional security.

Asean’s call for ceasefire

His remarks came a day after Asean foreign ministers issued a joint statement urging both the US and Iran to implement a ‘complete and immediate ceasefire.’

Rubio justified Washington’s withdrawal from initial ceasefire talks, saying Tehran’s demand to toll or block ships in Hormuz violates international law and undermines freedom of navigation.

‘Iran’s actions risk holding 20 percent of the world’s energy supply hostage,’ Rubio said. ‘If they’re serious, we’re serious. If they’re not, then we will do what is necessary to protect our interests and those of our allies.’

US military context

Rubio’s comments coincided with US Central Command strikes on Iranian targets for the 11th consecutive night, aimed at degrading Tehran’s ability to threaten shipping.

The Strait of Hormuz handles one-fifth of the world’s oil shipments. Most Asean states import crude and refined products from the Gulf, with limited reserves and refining capacity.

Rubio affirmed the US commitment to Asean, pledging long-term partnership through strategic investments, energy cooperation, and security assistance.

‘The United States stands with Asean,’ he said. ‘We will be your reliable and durable partner for the next 50 years and beyond.’

THE Land Transportation Franchising and Regulatory Board (LTFRB) has committed to issue a final resolution on pending fare increase petitions ‘in the soonest possible time,’ after the Department of Transportation (DOTr) ordered it to begin public consultations on the pleas.

In a statement, the regulator said it will recompute the appropriate fare adjustments based on the petitions of transport groups Manibela and Piston, upon the instructions of Transportation Secretary Giovanni Lopez.

‘What can be assured, however, is that instead of an interim adjustment given the price of petroleum products, the LTFRB will come out with a final resolution in the soonest possible time,’ the agency said.

Piston, which lodged its plea about three months ago, is seeking a P10 increase in the minimum fare, while Manibela’s more recent petition asks for a P2 hike.

The LTFRB said the recomputation will factor in ‘the capacity of the riding public to absorb additional transportation costs and the overall inflationary effects of any amount of fare adjustment to the price of basic goods and services.’

A final ruling would settle rates that have so far moved only provisionally. The fare hikes that took effect last March 19-which raised rates across all modes of land transportation by an average of 19 percent and brought the minimum fare for traditional jeepneys to P14 from P13 and for modern jeepneys to P17 from P15-remain provisional.

Lopez, for his part, said he has instructed the LTFRB to start public consultations and coordinate with its regional directors nationwide, noting that they should balance the interests of both drivers and commuters.

He cautioned that any fare adjustment must be weighed carefully against its inflationary impact.

‘The complication right now is that we have to also address inflation,’ he said. ‘I understand that there are several petitions filed before the LTFRB for this fare hike. I instructed LTFRB to start the process like public consultation and consultations with the regional directors nationwide.’

While the petitions undergo review, Lopez assured drivers that existing government support programs remain in place, including the P10-per-liter fuel subsidy program. The LTFRB said the fuel discount will continue while it explores expanding coverage to reach as many public utility vehicles as possible and increasing the discount amount.

‘[LTFRB should] start the process pero tingnan ni’yo rin if we can, might as well, expand itong government interventions like the fuel subsidy or fuel discount. In that way, we can manage the inflation,’ he said, adding that the President is expected to take up the issue as well.

THE men’s national team pulled off a remarkable campaign in the 2026 FIBA 3×3 Nations League Asia 2 by securing a berth in the FIBA 3×3 U23 World Cup after a dominant run in Petaling Jaya, Malaysia.

Competing against fellow Under-21 teams from Japan, New Zealand, Belarus, Singapore and Malaysia, the Gilas Pilipinas 3×3 squad reached the finals in five of the six stops, winning three en route to the first-place finish.

Gilas started their campaign with back-to-back wins, but they suffered a tight loss to Belarus in the Stop 1 Finals.

After missing out on a podium finish for Stop 2, Gilas bounced back big time by beating Japan to win Stop 3 and the young Filipinos made sure there was no doubt about who the best team was as they defeated New Zealand and Japan to win Stops 4 and 5 via game-winning two-point baskets.

The Philippines finished with 520 points in the tournament, 50 points clear of second-place Japan, to earn a spot in the World Cup, marking another significant milestone for Samahang Basketbol ng Pilipinas’s rapidly growing 3×3 program.

SBP Executive Director Erika Dy emphasized that the accomplishment reflects the federation’s continued investment in the 3×3 discipline and the willingness of stakeholders across Philippine basketball to work together in developing national teams.

‘Earlier this year, our Gilas Pilipinas 3×3 Women ended an eight-year drought to make it back to the FIBA 3×3 World Cup,’ Dy said. ‘Now Gilas Pilipinas 3×3 Men will also end their own eight-year drought to make it back to the FIBA 3×3 U23 World Cup.’

‘I would like to extend our deepest gratitude to the schools, coaches, and team officials who supported Gilas Pilipinas 3×3 by allowing their players to represent the country,’ Gilas Pilipinas 3×3 Program Director Ryan Gregorio said.

Gregorio thanked Far Eastern University Athletic Director Mark Molina and coach Sean Chambers, who rescheduled their team’s US training to allow Cabs Cabonilas and Jedric Daa to compete in this tournament.

He also thanked San Miguel Corp. Sports Head Alfrancis Chua and coach Pido Jarencio for loaning University of Santo Tomas big man Koji Buenaflor, Adamson University head coach Nash Racela for allowing Earl Medina to join the national team and to team manager Jude Roque and coach Yuri Escueta for permitting Jhun Dela Rama to represent Gilas even while he is in residency.

Program partner Metro Pacific Tollways Corp. and NLEX also lauded the team’s achievement, highlighting the value of supporting the country’s rising basketball talents on the international stage.

‘We at MPTC and NLEX send our congratulations to the Gilas 3×3 Men after their successful campaign in Malaysia,’ NLEX Governor Ronald Dulatre said.

Foreign business groups have urged President Ferdinand Marcos Jr. to focus on fully implementing recently enacted economic reforms while pushing for the passage of key investment-related measures to further improve the country’s business climate.

In a letter dated Tuesday, ahead of the President’s State of the Nation Address next week, the Joint Foreign Chambers of the Philippines (JFC) outlined legislative and executive priorities it said would help translate policy reforms into higher investments, greater productivity and more jobs.

The JFC said the government should prioritize the effective implementation of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, the Ease of Doing Business Act and the Ease of Paying Taxes Act, while strengthening the Anti-Red Tape Authority.

The group also renewed its call for faster processing of value-added tax (VAT) and creditable withholding tax (CWT) refunds, describing delays as a long-standing concern among foreign investors.

Foreign business groups have consistently cited regulatory inefficiencies, bureaucratic delays and the ease of doing business as among the biggest challenges faced by companies operating in the Philippines.

On the legislative front, the JFC urged Congress to prioritize 12 investment-related measures, including amendments to the Electric Power Industry Reform Act (EPIRA), the Cybersecurity Act, the Digital Economy Act, the Freedom of Access to Information Act, the National Single Window System Act, the National Land Use Act, the Artificial Intelligence (AI) Act, the Blue Economy Act, amendments to the Civil Aviation Authority Act and the Philippine Ports Authority Charter, the Holiday Rationalization Act, and measures further liberalizing foreign equity restrictions.

According to the JFC, these measures would modernize the country’s regulatory framework and strengthen its competitiveness as an investment destination.

The group also identified several executive actions that could be implemented without new legislation, including stricter enforcement of the Ease of Doing Business, CREATE MORE and Ease of Paying Taxes laws; a review of Administrative Order No. 23 on the Digital and Integrated System for the Pre-Border Technical Verification and Cross-Border Electronic Invoicing of All Import Commodities; streamlined visa processing for foreign nationals; a reassessment of the Food and Drug Administration’s revised registration fees; a review of the implementation of the Extended Producer Responsibility (EPR) Act; and broader stakeholder consultations on emerging food regulations, including the Philippine Nutrient Profile Model.

The JFC also urged the administration to sustain its trade agenda by concluding free trade agreement negotiations with the European Union and Canada.

The Department of Trade and Industry has said it aims to complete both negotiations before the end of the year.

‘Recent reform gains demonstrate the value of sustained government and private sector collaboration,’ the JFC said.

‘Building on this progress will be instrumental to strengthening competitiveness, attracting investment, creating quality employment, and sustaining long-term economic growth,’ it added.

The Joint Foreign Chambers of the Philippines is composed of the American Chamber of Commerce of the Philippines, the Canadian Chamber of Commerce of the Philippines, the European Chamber of Commerce of the Philippines, the Japanese Chamber of Commerce and Industry of the Philippines Inc., the Korean Chamber of Commerce Philippines Inc., and the Philippine Association of Multinational Companies Regional Headquarters Inc.