Category: Business Mirror

The Philippine Statistics Authority’s release of the Multidimensional Poverty Index (MPI) offers a sobering reality check that extends far beyond the headline figure of 12.8 percent- or 14.4 million Filipinos-living in multidimensional poverty in 2024. While the percentage may seem modest when compared to income-based poverty metrics, the MPI reveals something far more insidious: poverty in the Philippines is not merely about the absence of money, but about the systematic denial of basic human capabilities. (Read the BusinessMirror story: ‘New PSA index goes beyond income in measuring poverty,’ August 27, 2026).

The MPI’s methodology, which examines deprivations across education, health and nutrition, housing, water and sanitation, and employment, exposes the interconnected nature of disadvantage in ways that income statistics cannot. When 40.7 percent of multidimensional poverty stems from educational deprivation-the largest single contributor-we are forced to confront an uncomfortable truth: the country is failing to equip its citizens with the most fundamental tool for social mobility.

This is not a new problem, but the MPI’s granular data makes it impossible to ignore. The fact that educational attainment and housing materials each register a 10.7 percent censored headcount ratio-the highest among all 17 indicators-suggests that the foundations of dignified life remain out of reach for millions. A family without adequate shelter and without educated members faces compounding disadvantages that perpetuate poverty across generations.

Yet perhaps the most alarming finding is not confined to those officially classified as multidimensional poor. The uncensored deprivation rates reveal that certain forms of deprivation have become normalized across Philippine society. When 38.7 percent of all Filipinos-regardless of income status-suffer from housing-material deprivation, and 26.4 percent lack internet access, we are looking at structural failures that transcend traditional poverty lines. The 24.1 percent without proper sanitation facilities and 20.2 percent facing educational-attainment deprivation represent millions of Filipinos who may earn enough to avoid income poverty classifications but remain excluded from basic standards of modern life.

This ‘hidden deprivation’ poses a particular policy challenge. As De La Salle University economist Ma. Ella C. Oplas correctly observes, ‘being poor based on income should not necessarily mean being deprived of basic services.’ The inverse, however, is equally troubling: millions who earn above poverty thresholds are nevertheless deprived of the building blocks of human development. The government’s responsibility extends beyond cash transfers and income support to ensuring universal access to quality education, adequate housing, sanitation, and digital connectivity.

The MPI’s value lies precisely in its ability to illuminate these blind spots. With a national MPI of 0.045 and an average deprivation intensity of 34.7 percent among the poor, policymakers now have quantitative evidence of where interventions are most urgently needed. The data suggests that even among the multidimensionally poor, the average individual is deprived in more than one-third of weighted indicators-meaning poverty is rarely singular but rather a cluster of interconnected disadvantages.

For a nation that has achieved upper-middle-income status, these numbers represent both a milestone and a mandate. Every child still deprived of education, every family living in substandard housing, every household without sanitation remains a drag on national productivity and a reminder that economic classification must translate into tangible human dignity.

The MPI is not merely a measurement tool-it is a mirror held up to Philippine society. What it reflects is a nation where millions remain trapped not just by low incomes, but by systemic deprivation that limits their very humanity. The government’s response must match the scale of this revelation: targeted, multi-sectoral interventions that recognize poverty for the multidimensional crisis it truly is. Anything less betrays the 14.4 million Filipinos whose deprivation has finally been counted, and the millions more whose struggles remain hidden in plain sight.

THE country’s growing farm tourism industry takes on higher ground, quite literally, as it goes to Baguio for the 9th International Farm Tourism Conference. This was how the International School of Sustainable Tourism (ISST) introduced for the first time the conference in Baguio with the theme ‘Highland Harvest: Cultivating Sustainable Agriculture and Tourism. ISST held its first farm tourism conference in 2014 in Daet, Camarines Norte and has since gone around in the lowlands and coastal areas like Tagaytay, Iloilo, Cebu, Bohol and General Santos.

Farm tourism has been the mission of ISST and its president Mina Gabor has since been indefatigably pushing for its promotion. Farm tourism is defined as the practice of drawing visitors and tourists to working farms or fishing areas for production, educational and recreational purposes, that can provide both farm and community some income.

In a press conference, she said what was important is the creation of a knowledge base for those involved in agriculture to be able to create a solid program that is not wasteful.

The conference in March covered the status and potential of agricultural industries like coffee, fishery, ornamental flowers and systems needed to upscale farm tourism like branding, cultural heritage, marketing and exporting. Included also were talks on climate change and biodiversity.

But it was the tangible responses farm tourism offers to prevailing woes in agriculture Gabor discussed in a press conference that felt meaningful and most relevant. On this, Gabor and ISST movers brought in experiences and best practices from other places that may also work on the local level.

Among these main threats is the ageing population of farmers. Cordillera tourism regional director, Jovy Ganongan said the average age of the country’s farmers is 57 years old, even younger in Cordillera, at 55 years old. And will the young ones take over? That’s a hard question.

On a road trip to Benguet farms, this writer also heard and observed farmers encouraging their children to pursue what to their minds were more lucrative courses. And there are the young themselves immersed in an internet generation where progress equates to the speed of digital information and tilling the land is seen as backward and bereft of economic opportunities.

Gabor sees the solution in starting them young. She prodded the education department to promote the interest of young students in agriculture through farm tourism. Agriculture must be part of the curriculum, to include field trips to farms, so that the young will become aware that farming is not just about planting and harvesting, but also about enterprise and product development, which is enticing to the young.

The older generation need not fade away, too. In interviews she made among farmers living near the Kinatabangan River in Sabah, Gabor found that older farmers acted as historians because they could even predict the weather. ‘Old experience makes the link between the old and young important,’ she said.

Another aspect the young find exciting is edible landscaping, which is now in some schools. ‘We have reached up to the Visayas and by the last count, one part of Southern Luzon,’ said Gabor

Asked about the intrusion of agriculture into forest land which is a serious concern in the region, Gabor cites a practice in Costa Rica which she has already communicated to the Department of Environment and Natural Resources.

All around the huge rainforest reservation in Costa Rica are farmlands the government gives free and farmers can keep the income they derive from tilling the land. In return they act as stewards of the forest so no hunting nor destruction occurs in the protected area. She believes this can be a way to protect Sierra Madre while also helping farmers.

Places can also be designated as sacred where elders call a ceremony and declare the place sacred, with rules like being clean when entering the place. She cites a place in Indonesia where a spot has been protected and treated as sacred for the last 15 years through this practice.

ISST dedication to farm tourism

THE establishment of the ISST is by itself a significant move in strengthening farm tourism. The school started offering only a certificate program with three courses: Farm Tourism 101, Marketing and Finance, Marketing and Promotion. ‘Today we have 16 courses, one of which is the edible landscape,’ she said.

‘Edible landscaping, designing areas instead of the usual horizontal plots, brings out the passion and creative side of the students, so it is passion complemented by action,’ she explained.

ISST Board Director Dr. Jose ‘Jojo’ Bernardo brought his experiences from his leadership roles at the Tokyo, Japan-based Asian Productivity Organiztion (APO) to the ISST.

He was director of the APO agricultural department where he spearheaded initiatives in sustainable agriculture, and one of his key projects was promoting rural ecotourim. Together with a colleague, he developed a farm tourism program, which he brought home with him after retiring from ATO.

‘I’m bringing to ISST my experiences in Japan, Taiwan, Malaysia, Indonesia where I conducted training on farm tourism. We have been giving ecotourism courses at ISST and holding conferences for more than a decade to promote farm tourism,’ he said.

ISST is the only school in Asia-Pacific that offers courses in sustainable ecotourism.

The good news is that ISST is now coordinating with CHED for the development of a four-year Bachelor of Science for Sustainable Tourism Management course. They are completing the documents and looking at places to hopefully get it off the ground and have the first batch by next year.

Urban farm tourism, Gabor said, is one of the most important trainings they have. She cites Paranaque where after the ‘riles ng train’ portion was fixed, there are now farms and they have produce given to school children.

In fact, in urban agriculture where space is a concern, this may not demand a large area. In Manila, she cited three mushroom producers occupying only about 50 sqm who earn some P65 thousand a month. They are not just in production but also in processing, and people watch the process. ‘The important thing is to get started, even in small ways, and people will follow,’ she said.

Farm tourism also brings people to the product, which costs less rather than bringing the product to the market. Gabor’s relentless enthusiasm and persuasive passion has also earned government support for farm tourism.

In 2015, she met with then Senator Cynthia Villar to convince her that farm tourism is the answer to the problem of ageing farmers and farmers who give up and turn to more reliable sources of income like carpentry or construction work.

In November of that year, Villar called for a public hearing where Gabor brought all the supporting documents and some 20 people who were into farming to join her. On May 16, 2016, six months after the hearing, the late then President Benigno ‘Noynoy’ Aquino 111 signed into law RA 10816 or the Farm Tourism Development Act. This RA offers tax privileges and support programs for accredited tourism farms.

More recently, on February 16 of this year, the agriculture, trade and tourism departments launched the Strategic Action Plan for Farm Tourism 2016-2031 which expands agritourism from policy into execution.

This six-year roadmap links farming directly with tourism and gastronomy and encourages hotels and restaurants to buy directly from local farmers. It also aims to make the country a top farm and food destination across Asia.

Already, Gabor says that 30 percent of tourists go to farms with about 100,000 visitors at the peak of summer. Despite the potential, by 2023, only 231 farms have been accredited by the Department of Tourism (DOT). ISST, meanwhile, has identified 800 good farming sites. To boost the number, ISST organizes farms for organic agriculture training, a requirement for accreditation.

The Cordillera region, which fills 80 percent of the country’s demand for high- value crops, ironically has only 25 farms accredited for farm tourism.

Farmers here can take inspiration from the success stories of Northern Blossoms, a must-go destination in Benguet; the Cosmic Farm of Rogel Marzan, now a Tesda- accredited training center for organic farming; and the Living Gifts Nursery that has the biggest collection of cacti specie in the country, for they all started in simple and small ways

For the love of it

DESPITE over a decade of tireless pursuit of farm tourism, Gabor thinks of it as always exciting as every step of the way, every story heard gives a new learning. She has her own story to tell on how old wisdom can be steeped in superstition.

As children at her grandmother’s house, they used to throw slippers at a bees’ nest to drive them away, and her grandmother would scold them as the nest brings good luck, although she could not say how. In time, Gabor understood the sound science behind it-where bees build their colony indicate a balanced ecology. ‘Every province has their own anecdotes to tell. We learn from them more than what we teach them,’ Gabor said.

Farm tourism promises economic and environmental gains, but its real charm and allure seems to lie in nostalgia,

Gabor said that when people were asked why they go to farms, visitors would say it’s because they miss the old and simple ways. With all the stress and complexities of modern life, farms offer the refreshing simple needs of life-fresh air, clean food and the joys of sharing and storytelling.

THE Philippines may still have room to push its exports beyond the government’s 2026 forecast, even as officials acknowledge that the country is still working out how much growth it can realistically deliver.

The Export Marketing Bureau (EMB), an attached agency of the Department of Trade and Industry (DTI), said it remains cautiously optimistic that goods and services exports could outperform the Development Budget Coordination Committee (DBCC) projections.

‘We’ve seen the DBCC forecast about 3 percent for goods and 4 percent for services. We are cautiously optimistic that we’ll surpass that forecast,’ EMB Director Bianca Pearl Sykimte told reporters recently in Pasay City.

Sykimte, however, said the agency was still working on the numbers, echoing DTI Secretary Ma. Cristina Roque’s remarks in July that the department did not yet have a firm export projection but was already discussing the outlook.

Roque had said the Philippines remained on track to become an export powerhouse, with the government counting on the completion of key free trade agreements to sustain export growth.

The government’s goal is to transform the Philippines into an ‘agile export powerhouse’ by 2028, a target outlined by President Ferdinand R. Marcos Jr. in 2023 under the Philippine Export Development Plan (PEDP).

The updated PEDP presented by the Export Development Council in December, however, set lower export targets than those originally envisioned. It projects total exports of $116.1 billion to $120.2 billion in 2026, $123.3 billion to $127.4 billion in 2027 and $132.8 billion to $135.1 billion by 2028.

The latest trade data show why raising export growth remains a challenge.

Recent data from the Philippine Statistics Authority showed that exports reached $54.92 billion in the first seven months of 2026, against imports of $92.26 billion, leaving the country with a $37.34-billion trade deficit.

Electronic products remained the country’s largest export commodity during the period, accounting for $4.79 billion, or 58.8 percent of total exports.

‘I still hope our exports will strengthen as it’s really lacking in volume. That’s our challenge here with the exchange rate,’ Remolona said.

The peso subsequently closed at a record-low P62.265 against the US dollar on August 28, according to the Bankers Association of the Philippines.

The weak peso also complicates the export picture for manufacturers, with the Federation of Philippine Industries noting that many exporters remain dependent on imported raw materials and components whose costs rise as the peso depreciates. See story ‘FPI: P62 to dollar isn’t the windfall it seems.’

Still, EMB sees room for exports to finish stronger than the baseline forecast. ‘So far, the first half of the figure is still double digits,’ Sykimte said. ‘So, hopefully, yes.’

Mactan-Cebu International Airport (MCIA) will market Cebu and two other Aboitiz-operated gateways to Trip.com’s 2.5 million active subscribers under a new partnership that opens the airport’s routes to exclusive fare, hotel, and attraction deals on the global travel platform.

The tieup gives travelers access to network offers spanning MCIA and the Aboitiz InfraCapital airports in Bohol and Laguindingan, alongside vouchers redeemable for flights, accommodations, and attractions.

‘This partnership underscores our ongoing commitment to expanding global access to the beautiful destinations of the Philippines,’ said Aboitiz InfraCapital Airports CEO Athanasios Titonis.

It also secured exclusive arrangements with major carriers including Philippine Airlines, Singapore Airlines, Vietnam Airlines, China Airlines, Starlux Airlines, Eva Air, Scoot, Jetstar, Korean Air, and United Airlines.

‘This strategic exchange with Trip.com maximizes our digital footprint across our key markets in a high-traffic platform. It perfectly aligns with our mandate to champion Cebu as a vibrant hub, ensuring we bring value to our passengers through different platforms for the routes that we develop,’ Titonis added.

The deal aims to stimulate both inbound and outbound travel through Cebu by tapping the online travel agency’s digital reach and airline links. Through the platform, passengers can search deals for Cebu and the other Aboitiz-run airports and book exclusive network offers to those destinations.

MCIA is the Philippines’s premier transfer gateway to the Visayas and Mindanao and is fully owned and managed by Aboitiz InfraCapital, the infrastructure investment arm of the Aboitiz Group. The airport operates the Ceb Connects transfer system and the Ceb+ integrated air-to-sea travel network, and was the first in the country to use parallel runways.

It was named Best Airport in Asia-Pacific in the 5-15 million passengers per annum category at the 2024 Airport Service Quality Awards and Airport of the Year in Asia at the TDM Travel Trade Excellence Awards 2025.

ACTOR JM de Guzman is mighty proud of his ongoing TV series My Besfren Emman, produced by Spring Films and Numinous Narratives, and airing on TV5. The series, which is getting more viewership, has started its new season and continues to explore themes of faith and family, emotional and spiritual conflicts, resilience, renewal and redemption, and the many chances that life offers to those who are bent on moving forward with grace and dignity.

Perhaps the word that is best associated nowadays with JM these days is resilience. Resilience is the ability to accept, adapt, recover and move forward in the face of challenges and adversity. Experts reckon that it is also critical when it comes to the preservation of one’s mental health. It helps prevent stress from becoming too overwhelming, and allow us to process the difficult emotions and setbacks in a healthy way, thus building a stronger foundation for our emotional healing and well-being.

In JM’s case, the resilience he had in his core, which he wasn’t fully aware of in his past dark periods, helped him lay a strong defense against mental health issues like anxiety, bouts of self doubt, and depression. ‘I’ve learned that resilience is like muscle-the more you work at it, the stronger it gets,’ he said.

During his dark days in the past, JM knew that he had to do something, and he could do something. ‘There are always people out there who can help and who are more than willing to help, but I realized that it is also important that I should be the greatest ‘helper’ of myself. I knew I value this career, I knew that I can do more as an actor, that I possess a natural gift of acting, and I can pursue it further and improve myself to become the actor I want to be. So I buckled down and faced my struggles head-on.’

On top of his priorities was getting into shape again. JM started working out, he tried to learn mixed martial arts. He became conscious of what he ate, he selected the people he wanted to be around with, sought professional help and guidance, and strengthened his support system.

Slowly, his small steps translated into huge changes, and the people in the entertainment business that once rolled their eyes when his name was brought up in casting sessions noticed, the same people that gladly gave him many chances to bounce back and redeem himself.

‘I had many colorful episodes of ups and downs in both my personal life and professional career. I had to break patterns that didn’t do me good. I had to rise from many incidents of backsliding. But I’m glad life continues to give me many chances to regain my footing. And My Besfren Emman is a major blessing in my life!’ he shared.

He added, ‘I’m very happy that I am working with actors that inspire me, lift me up and push me forward, actors that I look up to and truly admire-Sid Lucero, Shaina Magdayao, Ai Ai de las Alas, and our new cast member Ms. Angel Aquino. They are my constant reminders that we have to always keep it real and be thankful for work, and be strong and kind and positive.’

Indeed, JM de Guzman has mastered the art of bending without breaking. He has learned that his resilience has given him strength to rise, adapt and come out of any situation a much stronger and better person, and all he needs is to find the grit to keep on showing up as he can push himself to always move forward, despite all of life’s inevitable tests, challenges and obstacles. Because that is powerful.

The chairman of the House Committee on Dangerous Drugs warned on Monday that social media platforms are increasingly being exploited by illegal drug dealers and criminal groups to target young people despite existing policies banning the sale and promotion of illegal drugs online.

Las Piñas Lone District Rep. Mark Anthony Santos said the widespread use of social media and the ease of online communication have given drug dealers new avenues to reach potential customers, particularly young users.

‘Technically, all social media platforms prohibit the sale of drugs, but teens know how to find a drug dealer on social media. Drug enforcement units have found evidence that drug activity is rampant across major platforms, particularly Messenger and Viber in the Philippines,’ Santos said.

Citing studies, he said shabu, or methamphetamine, was among the illegal drugs most commonly purchased through social media in the Philippines, followed by marijuana, ecstasy and cocaine.

‘Criminals are adapting faster than we are. They are learning how to use the same platforms where our young people spend much of their time,’ Santos said.

The lawmaker also raised concerns over reports from cybersecurity experts that online games and social media platforms are being exploited by extremist groups to recruit vulnerable young people.

He cited reports involving an online group known as 764, which cybersecurity researchers have linked to the recruitment and exploitation of young people online, including a person reportedly involved in a shooting incident in Tacloban.

Santos said the threat therefore extends beyond illegal drugs, as young users may also become targets of criminal and extremist networks operating through digital platforms.

He also pointed to studies documenting the use of social media to facilitate illegal drug transactions, saying Instagram has emerged as a significant platform for online drug trafficking. Experienced users, he said, may be able to locate dealers through seemingly ordinary posts, accounts and interactions.

‘Social media has made it possible for drug dealers to operate in plain sight. They can use coded words, images, emojis and seemingly harmless posts to advertise illegal drugs while trying to evade the platforms’ detection systems,’ Santos said.

According to the lawmaker, dealers have also used emojis and other symbols as coded advertisements for illegal drugs in an attempt to evade automated content filters. He said such tactics highlight the limitations of relying solely on automated moderation to curb online drug trafficking.

Santos also cited research suggesting a possible link between problematic social media use and vulnerability to substance abuse.

Referring to a Michigan State University study, he said individuals susceptible to social media addiction may exhibit vulnerabilities associated with drug addiction, raising concerns that heavily engaged young users could become attractive targets for online drug dealers.

‘The danger is not simply that children may see illegal drugs online. The greater danger is that the platform can become the place where they are introduced to the drug dealer, persuaded to try drugs and eventually pulled into a criminal network,’ Santos said.

Santos called on social media companies to strengthen safeguards against the exploitation of their platforms by criminal organizations.

Among the measures he proposed are stronger age-verification systems to prevent children below 14 from creating or maintaining social media accounts, enhanced parental controls, and greater accountability for platforms in detecting and removing accounts linked to illegal drug activities, recruitment and exploitation.

‘We cannot allow criminals to turn the phones of our children into marketplaces for illegal drugs. Social media companies have the technology to identify suspicious behavior, and they must be required to use it more effectively,’ Santos said.

He urged Congress and relevant government agencies to strengthen laws and enforcement mechanisms against online drug trafficking while ensuring that measures to protect children are implemented without undermining legitimate online communication.

‘The drug trade has evolved. Our laws, enforcement strategies and digital safeguards must evolve with it. We cannot fight a 21st-century drug problem using yesterday’s tools,’ Santos said.

THE Department of Energy (DOE) will soon come up with a coal transition policy to manage the shift toward renewable energy (RE) while prioritizing energy security and avoiding power brownouts.

‘Our transition from coal must likewise be deliberate and supported by timely replacement capacity. We must reduce emissions without compromising reliability and affordability, while ensuring that affected communities and workers are part of the transition,’ Energy Secretary Sharon Garin said during the 15th Energy Smart Forum organized by the European Chamber of Commerce of the Philippines (ECCP) last week.

When sought for more details, Energy Undersecretary Rowena Guevarra said during the panel discussion that there are coal power plants currently operating below full capacity, triggering the rollout of a coal transition policy.

She pointed out that in order to stabilize power supply, there is an urgent need to construct new facilities that are legally exempt from the current coal moratorium policy. However, their compliance is inconsistent across the industry, noting that while some companies are moving forward with construction, others are failing to build despite being permitted to do so.

The DOE ban on new greenfield coal power plants took effect in 2000, but the projects that secured certificates of non-coverage or met substantial completion milestones prior to the ban are allowed to proceed.

‘We have the coal moratorium policy. We are coming up with coal transition policy,’ said Guevarra.

‘You see, our existing coal plants are breaking down or are derated – they can’t operate at 100 percent capacity. Because of that, we need to build the plants that aren’t covered by the moratorium. They aren’t covered by the ban, yet they still are not building. That is why a coal transition policy is being rolled out. Some are obedient and are already building, but others are not,’ she said.

The potential capacity for these coal power projects that are not covered by the moratorium could reach anywhere from three to five gigawatts (GW). Gueverra said these projects were approved and endorsed to the Energy Regulatory Commission (ERC) prior to the ban, have secured permits, have reached financial closure, and some under construction.

‘It involves about three to five GW-a significant amount. But the issue is, we don’t see them actually building,’ Guevarra said.

To prevent constant brownouts, the DOE proposed a contract termination mechanism for fossil fuel power plants, similar to existing renewable energy policies. Instead of monetary fines, failing to meet the committed work plan will result in project cancellation.

‘At the end of the day, we can’t just have constant brownouts. Is there a penalty for those who haven’t built yet despite having made a commitment? That’s the difference-as I mentioned, RE has a clear work plan.

‘If they don’t comply, the contract is terminated. But for our fossil fuel power plants, there isn’t a mechanism like that. It’s not a monetary penalty; the ultimate penalty is contract termination. That’s the worst-case scenario because the project won’t push through. So, they will have a work plan too,’ Guevarra said.

The DOE will hold a series of consultations with industry players to tackle the proposed coal transition policy. ‘We have to fulfill our RE targets. But at the same time, energy security is on top of that,’ she said.

McDonald’s Philippines said its chicken business is a major contributor to overall sales, with the category posting ‘incremental sales growth’ as annual volumes reach several million servings.

During a press briefing on Friday at the company’s head office in Makati City, Celina Lagandaon, marketing and menu director of McDonald’s Philippines, said the company has continued to invest in improving its Chicken McDo offering, particularly its bone-in chicken product.

The company began rolling out a larger bone-in chicken offering in 2023, followed by further changes to its preparation procedures in 2025 aimed at improving the product’s taste and texture. Lagandaon said the changes focused on factors that influence consumer preference, including chicken size, juiciness, crispiness and taste.

In 2026, the company introduced another iteration of the product. Although Lagandaon did not disclose specific sales figures, she said the changes had ‘made a positive dent’ not only in sales but also in consumer perceptions, including scores in evaluations of the chicken’s taste.

The company said affordability has also been considered in developing the offering.

As demand for its chicken offerings grows, McDonald’s Philippines said it is working closely with established poultry suppliers to ensure consistent product specifications across its restaurant network, its quality assurance director Alvin Marcelo said.

He added that all chicken used for its chicken offerings, as well as the rice served with them, are sourced locally.

‘We don’t have commissaries. We highly depend on suppliers. We work closely with the top management, making sure that we’re assured of the volumes.’

He said the company coordinates with suppliers on volume requirements as it expands into regional markets, with suppliers likewise scaling their capacity to support the chain’s growth.

Marcelo said the company is also accrediting additional facilities of existing suppliers across the country and broadening its supplier base to meet rising chicken requirements. Its network now includes about five major local poultry suppliers, up from three previously, although their names were not disclosed.

McDonald’s Philippines currently has more than 860 stores nationwide and is targeting 900 locations by yearend.

THE peso’s record slide past P62 to the dollar may boost the peso value of export earnings, but manufacturers say the gain is being offset by the higher cost of imported materials, machinery and fuel needed to produce those exports.

The peso closed at P62.265 against the US dollar on August 28, the weakest level on record, after opening at P62.05 and touching an intraday low of P62.27, per the Bankers Association of the Philippines.

The Federation of Philippine Industries (FPI) said the weaker currency is adding to cost pressures across manufacturing, particularly because much of the country’s export production remains tied to imported inputs.

‘With the peso breaching P62 to $1, industry is navigating multilayered pressures,’ the group said in a statement on Friday.

Electronics, which account for more than 58 percent of Philippine exports, illustrate the problem, FPI Chairperson Elizabeth Lee said.

‘Every chip we ship depends on costly foreign inputs. At P62 to the dollar, any FX (foreign exchange) gain is erased by the inflated peso cost of semifinished parts. Exporters are left with volume, but no real windfall,’ Lee said.

The same exchange-rate pressure is affecting companies planning to expand or upgrade their production capacity.

Data from the Philippine Statistics Authority (PSA) showed that machinery and equipment accounted for 27.9 percent of imports in the first seven months, meaning a weaker peso also raises the peso cost of factory upgrades and other capital spending.

‘Firms face a stark choice-delay upgrades or borrow at higher cost. Yet industry remains committed to modernization, provided relief measures are in place,’ Lee said.

Fuel adds another layer to manufacturers’ costs. Mineral fuels, including crude oil, coke and coal, made up 19.4 percent of imports during the period, exposing businesses to both global energy prices and exchange-rate movements. ‘Unfortunately, we are a price taker here-but we can act to reduce inefficiencies at home,’ Lee said.

The exposure is reflected in the country’s widening trade gap. Government statistics data showed that imports reached $92.26 billion from January to July, compared with $54.92 billion in exports, resulting in a $37.34-billion trade deficit.

Both export and import values were the highest recorded for the period since the PSA’s trade series began in 1991.

The ‘winner’ does not take it all

THE weaker peso may be handing some businesses a win, but at P62 to the dollar, the broader business sector is also absorbing higher costs, according to the Management Association of the Philippines (MAP).

MAP President Donald Patrick Lim said exporters, business process outsourcing (BPO) firms, tourism businesses and dollar earners benefit from higher peso returns on foreign-currency revenues, while Overseas Filipino worker (OFW) remittances gain purchasing power. ‘But for a large part of the domestic economy, the other side of the equation is becoming more important,’ Lim told BusinessMirror in a message. More than 85 percent of imports consisted of raw materials and intermediate goods, capital equipment and mineral fuels, based on PSA data.

For Lee, this dependence could also push up consumer prices as businesses absorb higher landed costs. ‘With raw materials and energy as essential imports, the peso’s slide past P62 can fuel cost-push inflation. Rising input costs will cascade from wholesale eventually into retail prices, even as rate hikes attempt to slow demand,’ she said.

The Bangko Sentral ng Pilipinas (BSP), meanwhile, projected August inflation at 5.5 percent to 6.5 percent.

Lim said imported fuel, machinery, technology, raw materials and intermediate goods raise operating and replacement costs when the peso weakens, compounding pressure from already elevated inflation.

‘Businesses can absorb higher costs only for so long. Eventually, companies either have to raise prices, accept lower margins, find cheaper inputs, or postpone certain expenditures,’ Lim said. ‘For MSMEs with limited ability to hedge foreign-exchange exposure or negotiate better supplier terms, the pressure can be even greater,’ he added.

Needed adjustments

RATHER than relying solely on the exchange rate to absorb the shock, the government could reduce domestic costs that add to manufacturers’ expenses, the FPI said.

The group proposed easing nontariff barriers during periods of exchange-rate volatility, including faster clearance of manufacturing inputs and fewer administrative delays.

‘Expedited clearance for manufacturing inputs and removing administrative delays can reduce demurrage, storage, and port handling fees-directly offsetting foreign exchange landing cost increases,’ Lee said.

If the peso remains at around P62 or weakens further, MAP expects businesses to become more cautious in both pricing and investment decisions.

Companies may stagger price increases rather than make one large adjustment, intensify efforts to source locally, renegotiate contracts, and defer dollar-denominated equipment purchases or expansion plans where possible. Businesses with significant foreign-currency obligations will also have to pay much closer attention to their balance sheets and currency exposure.

From MAP’s perspective, what businesses need most is not necessarily a particular peso-dollar level but stability and predictability.

‘Companies can plan around P60, P61 or even P62 if movements are orderly and economic policy remains credible,’ Lim told this newspaper. ‘What is much more damaging is rapid and sustained depreciation because it makes costing, pricing, investment and financial planning much more difficult,’ he added.

Lim also pointed to a longer-term structural challenge: strengthening domestic production and reducing unnecessary dependence on imported inputs, particularly in energy, food and other strategic sectors.

‘A competitive economy cannot permanently rely on a favorable exchange rate. Our objective should be stronger productivity, deeper domestic supply chains and businesses that can compete regardless of where the peso trades,’ he explained.

A SOLON has looked into the status of the murder case filed against a former military colonel in connection with the 2017 killing of farmer Enrique Manas Sr. in Sta. Margarita, Samar.

In a letter addressed to the DOJ Secretary Fredderick A. Vida, Samar First District Congressman Stephen James T. Tan asked for clarification on the status of the DOJ proceedings involving accused Emilio Zosa’s motion for reconsideration (MR).

The MR seeks to set aside the DOJ’s January 2025 resolution recommending the filing of murder charges against Zosa and his co-accused Arturo Deborborn and Ricky Calagos.

Specifically, the solon asked the DOJ whether the MR has already been submitted for resolution or there are other remaining procedural requirements or submissions pending before the agency and whether the counsel representing the victims and the Manas family had been furnished a copy of the MR and given an opportunity to submit their comment, opposition or position.

Tan noted that the case had been pending through various stages of proceedings and review before the DOJ for several years, with nearly nine years having passed since the ambush.

Manas was gunned down in Barangay Bahay in Sta. Margarita town in 2017.

It may be recalled that on January 16, 2025, then Justice Secretary Jesus Crispin Remulla ordered the filing of murder charges against the accused after finding prima facie evidence with reasonable certainty of conviction.

The criminal information was received by the Regional Trial Court on March 19, 2026.

Zosa subsequently filed a an appeal before the DOJ.

Tan clarified that the inquiry was not intended to interfere with the DOJ’s independent evaluation of the case or suggest how the pending MR should be resolved.

‘The inquiry is prompted by the continuing concern of the victim’s family given the extraordinary length of time that the case has remained pending. The family endured nearly nine years of uncertainty since the death of Enrique Manas Sr.,’ the letter read.

‘They are not asking for special treatment or for the Department to prejudge the rights of any party, but simply seek to know where the case now stands and what procedural steps remain before the matter can proceed in accordance with law,’ it added.