Category: Business Mirror

Some of the Nordic region’s biggest companies and wealthiest investors are working on a proposal to create a single, unified stock exchange.

The proposal is one idea the group, called Nordic Compass, is considering to more closely integrate the region’s capital markets, according to people familiar with the discussions.

The industry alliance, inspired by Mario Draghi’s two-year-old report on European competitiveness, is discussing ways to make the Nordic region more dynamic by breaking down national barriers and help the region take full advantage of its economic and industrial strength. Partners include Wallenberg Investments AB, EQT AB, Nordea Bank Abp, Nasdaq Inc, SEB AB and the Novo Nordisk Foundation.

Capital markets are one of four key areas of focus, with members exploring how to harmonize the regulatory frameworks across Sweden, Denmark, Norway and Finland, the people said, asking not to be identified because the plans aren’t public.

One option under consideration is to go significantly further and consolidate the existing national exchanges into a single Nordic bourse in an effort to attract more capital, encourage more initial public offerings and strengthen the region’s position amid potential consolidation elsewhere in Europe, the people said.

The creation of a unified Scandinavian capital market could face significant hurdles, including securing the support of other market infrastructure providers not currently involved in the initiative.

While Nasdaq controls most of the region’s national bourses, other players such as Euroclear Holding NV provide much of the plumbing needed to settle trades and exchange securities for cash. Euronext NV also owns the Oslo stock exchange, so any arrangement would require cooperation from multiple parties.

Representatives for Nasdaq and Euronext didn’t respond to emailed requests for comment.

The alliance plans to present its vision at a summit in Gothenburg in November. The details are still being worked out, however, and the final proposal may change, the people said.

‘Nordic Compass’ Capital Markets Track is working to improve opportunities to raise capital to support competitiveness across all stages, from start-up, venture, growth and scale-up to IPOs, as well as the ecosystem for Nordic listings,’ said Christian Clausen, BlackRock Inc’s Nordic chairman and former CEO of Nordea, who chairs the track.

‘This includes analyses of a range of potential initiatives, including issues related to liquidity,’ he said, adding that ‘the work is still at an exploratory stage, and no agreement has yet been reached on specific initiatives or conclusions.’

The push comes as the Nordic countries struggle to harness capital into funding for fast-growing companies, prompting some of the region’s most promising businesses to seek financing or listings in the US instead or relocate elsewhere. Nordic pension investors and sovereign wealth funds manage almost $4 trillion and receive more than $175 billion in annual inflows, according to Nordic Compass, but despite this financial strength they struggle to create a capital market capable of funding companies as they scale.

Some Nordic companies that have opted to move to the US as they grow bigger include buy-now-pay-later giant Klarna Group Plc., music-streaming platform Spotify Technology SA and Oura Inc., the maker of health-tracking rings founded in Finland.

Rather than producing a set of recommendations on European competitiveness, Nordic Compass intends to focus on a limited number of initiatives that can be implemented and scaled relatively quickly.

‘The Nordics have the capital, the companies, and the innovation. The opportunity lies in connecting it more effectively together,’ Nordic Compass said in a post on LinkedIn. ‘Achieving this requires coordinated action.’

WINNING candidates in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) could have their proclamations suspended if the Commission on Elections (Comelec) finds evidence of vote-buying during the upcoming parliamentary elections.

However, the polls body said it has yet to receive a vote-buying complaint. Related story on page B8

Comelec Chairman George Erwin M. Garcia said the poll body has created task forces across BARMM to intensify its monitoring of vote-buying and act quickly on complaints.

Senior Comelec personnel from the main office have been assigned to the task forces covering various provinces and the cities of Cotabato and Basilan.

The personnel will monitor possible vote-buying activities and directly receive complaints for immediate action by the Comelec en banc, Garcia said.

He also said the commission would act immediately after receiving video evidence or a complaint involving vote-buying.

The warning comes as candidates enter the final stretch of campaigning for the first parliamentary elections in BARMM.

Garcia also pointed to previous Comelec actions involving the cancellation of a political party’s registration and the disqualification of candidates as proof that the commission can impose sanctions for violations.

‘We will not hesitate to disqualify candidates and cancel the registration or disqualify sectoral organizations,’ Garcia said.

Garcia urged candidates and voters not to believe claims that the September 14 elections might not push through.

‘Tuloy na tuloy ang halalan,’ he said.

He also urged voters to reject intimidation and vote-buying and cast their ballots based on their own choices.

Garcia also called on the candidates to observe the rule on election paraphernalia such as tarpaulins.

‘A lot of posters were stripped from public places. And that one time ‘baklas’ [operation] was very successful,’ Garcia said.

THE rainy season is here and it is but natural that we see our car companies unleashing vehicles with higher ground clearances to beat floodwaters, especially in the Big City.

Mitsubishi Motors Philippines Corp. (MMPC) has taken the lead as it recently launched the all-new Outlander PHEV, the electric sport utility vehicle (SUV) with a 199-mm ground clearance to go with a combined driving range of up to 1,000 kms behind a combination of gasoline engine and electric motors. Its introductory price of P2.75 million is good until September 30.

The MMPC used the occasion to issue a company policy charting the next stage of its contribution to the Philippine automotive industry through investments, manufacturing expansion and future mobility initiatives.

In a statement through Faye Alexis Marcelino, assistant vice president for corporate public relations, the MMPC said the company’s key initiatives are its previously announced P7-billion investment, participation in the government’s Electric Vehicle Incentive Strategy (EVIS) and the planned addition of hybrid electric vehicle (HEV) production to its local manufacturing portfolio in the Philippines.

HIRAKATA PLEDGE

Marcelino added that MMPC’s planned participation in EVIS ‘marks an important step in expanding its local manufacturing portfolio through the addition of HEV production, while supporting the government’s vision of strengthening the competitiveness of the Philippine automotive industry. Through this initiative, MMPC aims to broaden mobility choices for customers while contributing to the continued growth of Philippine automotive manufacturing. Beyond future mobility, MMPC continues to invest in its people, strengthen partnerships with local suppliers, and enhance the competitiveness of its operations-reinforcing its contribution to a stronger and more resilient automotive ecosystem.’

For his part, MMPC chairman Noriaki Hirakata said: ‘MMPC has always taken a long-term view of the Philippines. We see significant opportunities to strengthen local manufacturing, introduce new technologies, and help shape the next chapter of the country’s automotive industry.’

He said expanding Mitsubishi’s operations in the country has been a company priority.

‘Hybrid electric vehicles represent a practical next step for the Philippine market,’ Hirakata said. ‘By expanding our local manufacturing portfolio, we are broadening mobility choices for our customers while supporting the country’s ambition to strengthen its automotive manufacturing capabilities.’

‘Our ambition extends beyond manufacturing vehicles. We want to help position the Philippines for the future by contributing to a more competitive, innovative and resilient automotive industry,’ Hirakata added.

Mitsubishi has consistently remained No. 2 in the race ladder with an 18.72-percent share behind perennial pacesetter Toyota Motors Philippines’ leadership of cornering almost half of the total market pie consistently.

ABLAZA SPEECH

THE following piece from Carlo Ablaza, the youthful president of Lexus Manila, is one of the shortest ever speeches I’ve ever encountered. Here:

‘To our distinguished guests and the members of our Lexus family, good evening and welcome.

‘It is a pleasure to have you here at the Lexus Manila Gallery-a space built to inspire passion and create unforgettable experiences.

‘Tonight, we are here for a very special reason: to celebrate the arrival of the All-New Lexus ES.

‘For years, the Lexus ES has been the gold standard for luxury sedans, celebrated for its incredible comfort, beautiful craftsmanship and quiet confidence.

‘Our goal has always been to Make Luxury Personal. That means every single detail of this car is designed around you, ensuring that both driving and riding feel effortless. The All-New Lexus ES honors that rich history while stepping boldly into the future.

MORE CHOICES

‘THIS new model also represents our commitment to a cleaner, electrified future. We have expanded the ES lineup to include both Hybrid Electric and fully Battery Electric options. This gives you more choices to embrace electric driving in a way that fits your personal lifestyle.

‘On behalf of the entire Lexus team, thank you for sharing this milestone with us. We created this evening to show our deep gratitude to you. At Lexus, we don’t just build exceptional vehicles; we build lasting relationships.

‘We hope tonight gives you a true sense of that commitment. Without further delay, please join me in welcoming a new standard of luxury. Ladies and gentlemen, the All-New Lexus ES. Have a wonderful evening ahead.’

As they say, short but sweet. Cheers, Carlo!

PEE STOP Mary Natalie ‘Ally’ Tiongco says Lexus diehards have until Aug. 31 to avail of huge discounts on several models at Lexus Gallery Manila at BGC. What are you waiting for?….Allana Faith Rufo reports that the TGR Philippine Esports has started on August 17 and will end on September 13. The National Final is on September 27 at the SMX Convention Center in Pasay City, with the winner pocketing P100,000 and the runnerup P75,000.

ONLY by beefing up exports can government prevent the Philippine peso from weakening further, the central bank governor told lawmakers as the local tender plunged to a new record low on Thursday.

During a briefing at the Senate, Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. told lawmakers that the exchange rate itself is ‘something very hard to fix’ for a country like the Philippines.

The day the BSP chief spoke, the peso plunged to a new record low of P61.888 against the dollar. The level is 23.8 centavos weaker than its previous finish of P61.65 against the greenback last Wednesday, data from the Bankers Association of the Philippines showed.

Remolona explained to members of the Senate Committee on Finance last Thursday that the country’s outbound shipments are ‘expensive’ and ‘inadequate,’ making it difficult to stop the local currency from further weakening.

‘Our current account deficit is about 13 percent of our GDP [gross domestic product],’ Masyadong mahal ang exports natin; kulang na kulang ang exports natin,’ the central bank governor said during the briefing by members of the Development Budget Coordination Committee (DBCC). ‘So mahirap pigilin ang pagbaba ng peso. Pwedeng pigilan para mabagal pero hindi kayang i-fix; hindi pwedeng P60 lang, mauubusan tayo ng reserves, ng dollars.’

[Our exports are not only too expensive but sorely lacking in volume. So it’s difficult to stop the peso from falling. You can slow its slide, but it can’t be fixed. It’s rate can’t be just P60 as we’ll run out of reserves and dollars.]

Pax Silica

REMOLONA, who sits in the DBCC as resource person, shared his hopes for the peso.

‘Pero sana lumakas ang exports natin; kulang na kulang eh. ‘Yun ang ating challenge dito sa exchange rate,’ he said. [But I still hope our exports will strengthen as it’s really lacking in volume. That’s our challenge here with the exchange rate.]

Remolona, nonetheless, noted government initiatives to boost exports, such as US-led strategic investments in Luzon.

‘Gumawa tayo ng paraan na palakasin ang exports. Halimbawa yung Pax Silica [manufacturing and industrial hub in New Clark City], maaaring makatulong sa exports yan; also the Luzon Economic Corridor (LEC) nakatutok yan sa exports,’ the central bank governor said.

A post by the US Embassy in the Philippines last May explained that the LEC is ‘a trilateral initiative of the United States, Japan, and the Philippines.’

‘It engages partners-including Australia, Canada, Denmark, France, Italy, the Republic of Korea, Sweden, and the United Kingdom-to catalyze mutual economic growth, create jobs, strengthen connectivity, and improve transport and logistics, energy, and digital infrastructure along the corridor connecting Subic Bay, Clark, Manila, and Batangas.’ (See https://ph.usembassy.gov/fact-sheet-luzon-economic-corridor/)

However, Remolona said ‘it may take some time before we can do it [strengthen exports].’

Savings, investments

ANOTHER factor that Remolona considered in the peso-dollar exchange rate is the country’s current account.

He explained that the country’s savings is way below the country’s investments, hence the current account deficit.

‘Ang isa ang consideration dyan ‘yung savings rate natin. Kasi pag binilang yung remittances and BPO [revenues], ang diperensya ng pumapasok na pera ang tawag dun ‘yung current account,’ Remolona told lawmakers.

‘Matagal nang negative ‘yung current account natin. Hangga’t maaari sana tumaas ang savings natin, ‘yun ang long-term solution. Medyo mahirap sabihin to pero mayabang tayo. May consumption culture,’ he added.

And for the country as a whole, the BSP governor said: ‘Mas malaki ‘yung investments kaysa savings e. Para ma-finance ‘yun, uutang tayo abroad.’

Remolona spoke on the first day of Senate deliberations on the proposed 2027 national budget with the DBCC, a Philippine inter-agency body that reviews and approves macroeconomic targets, revenue projections, borrowing levels, and expenditure priorities for the budget.

Current accounts

IN an article in the BSP-published book launched last June, the central bank emphasized that managing the current account is ‘becoming increasingly challenging’ for the Philippines.

The book titled ‘Current Account Dynamics and the Philippine Economy: Developments and Prospects’ pinned the challenges on the pattern of the country’s economic development that is diverging sharply from the traditional industrialization route followed by many successful East Asian economies, which evolved from agriculture to industry on the way to a services-dominated economy.

‘This ‘premature de-industrialization’ of the economy, characterized by a weak industrial base and underdeveloped agriculture, combined with excessive dependence on low-productivity services, presents various challenges for CA management in the country,’ the BSP book noted.

Despite the resilient remittance inflows and the ‘booming’ information technology and business process management (IT-BPM) industry, book authors, who included Remolona, noted that long-standing trade deficits in goods suggest that its structural weaknesses persist.

Trade gap

DATA from the Philippine Statistics Authority (PSA) showed that the country’s trade gap widened in the first half of 2026 as the country’s import payments soared to a 35-year high.

Based on the ‘International Merchandise Trade Statistics,’ the country’s import bill in January to June rose by 17.8 percent to $77.53 billion from $65.79 billion in the same period last year.

The PSA said the latest figure was the highest first-half import value since the trade series began in 1991.

Export earnings rose by 13.1 percent to $46.72 billion in the first half, but this was slower than the recorded increase in imports. As a result, the country’s trade deficit widened by 25.9 percent to $30.81 billion from $24.48 billion a year earlier.

MINIMUM wage earners in 16 of 17 regions have seen their purchasing power erode since the late 1980s as wage growth failed to keep pace with inflation, according to a new study conducted by the University of the Philippines School of Economics (UPSE).

According to UPSE, only the National Capital Region (NCR) managed to broadly preserve the real value of its minimum wage since the start of the regional wage-setting system in 1989.

‘Except for NCR…minimum wages across all sixteen other regions have eroded in value relative to the 1989 baseline. This erosion is visually deepest in [Bangsamoro Autonomous Region in Muslim Mindanao] and in Central Visayas,’ the report noted.

‘This figure contradicts any assertion that regional wage-setting has historically raised the real wage floor,’ it added.

Across most regions, prices have risen faster than nominal minimum wages since July 1989, suggesting that regional wage boards have generally ‘defended’ the purchasing power of the wage floor rather than improved it over time.

At the same time, the study found that the Philippine minimum wage has a relatively high ‘bite,’ or is already close to the typical wage earned by workers.

The study’s Kaitz index, which measures the minimum wage against the median wage, ranged from 0.88 to 1.20 across regions. In 10 of the 17 regions, the real minimum wage was at or above the median wage of workers covered by the study.

However, the researchers said this does not necessarily mean the minimum wage is set too high. The high ratio also reflects legal exemptions for some businesses, noncompliance with minimum-wage rules, and the relatively compressed distribution of wages in the formal sector.

On concerns that wage hikes could lead to job losses, the researchers found that historical increases were associated with a reallocation of workers around the new wage floor rather than evidence of large-scale immediate displacement.

UPSE noted that employment in wage bands below the new minimum declined by 0.28 percentage point of the working-age population while employment within P100 above the new floor increased by 0.43 percentage point.

The resulting 0.15 percentage point net change was statistically insignificant, it said.

‘We note, however, that these findings should not be read as evidence that historical wage orders had no net employment effect. Indeed, one may also argue that these net reallocation estimates may simply be due to an upward-trending employment rate over time that is independent of population growth,’ it said.

The researchers said better data are needed to determine the effects of minimum-wage adjustments more reliably.

The researchers said the country also needs to revisit how minimum wages are set. They described the current tripartite wage-board system as ‘discretionary and opaque,’ with wage decisions influenced by bargaining and information gaps that go beyond measurable economic conditions.

As a possible reform, they pointed to formula-based safeguards similar to Indonesia’s system, which could anchor wage adjustments to observable measures such as inflation and productivity while retaining a role for regional wage boards.

The researchers said this could make wage-setting more transparent and responsive while preserving regional flexibility.

THE Presidential Communications Office (PCO) brought its anti-fake news campaign to the Association of Southeast Asian Nations (Asean) stage, presenting its strategy against misinformation and disinformation at a regional media workshop in Phnom Penh, Cambodia from August 26 to 27.

PCO Assistant Secretary for Private Media Arthur Los Baños outlined the country’s approach during the workshop dubbed ‘Minimizing the Negative Impacts of Digital Transformation in Traditional Media,’ which was organized by Cambodia’s Ministry of Information.

The Philippine strategy combines media partnerships, inter-agency coordination, law enforcement and media literacy.

The campaign was formalized on March 4 through a memorandum of understanding between the PCO and nine national newspapers to strengthen cooperation in fighting false information and protecting the integrity of news and truth.

Another agreement followed on April 13, bringing together the PCO, Department of Justice (DOJ) and Department of Information and Communications Technology (DICT) to strengthen the monitoring, investigation and prosecution of purveyors of fake news and disinformation.

Los Baños also presented the PCO’s efforts to improve the public’s ability to critically assess information through training and workshops for educators, journalists and government communicators.

The campaign has also moved into enforcement, with the PCO endorsing eight Facebook accounts and a website to the National Bureau of Investigation (NBI) for investigation over alleged fake news and false information.

The latest referral, filed on Aug. 13, involved a Facebook page posing as a satirical news platform and a website falsely advertising a P30,000 Department of Health medical assistance program.

The PCO said it will continue monitoring and referring verified cases of deliberate disinformation, particularly those involving public safety, government programs and matters of national interest.

The two-day workshop, attended by representatives from eight ASEAN member states, concluded onThursday.

two of the Persian Gulf’s smaller oil producers-are sending more crude through the Strait of Hormuz, adding to an increase in shipments that are keeping global prices in check.

The two countries, which exported a combined 2 million barrels a day of oil before the outbreak of the Iran war, have managed to get shipments back to 70 percent of pre-conflict levels, according to traders, who asked not to be named as they’re not allowed to speak to media.

The United Arab Emirates was the first gulf producer to export large volumes of oil through Hormuz, using ship transfers in the Gulf of Oman in a tactic known as shuttling. It has since been joined by Saudi Arabia, which has been forced to rely more on exporting through the waterway after Houthi militants started targeting tankers in the Red Sea.

A total of around 7 million to 8 million barrels of oil a day is now exiting Hormuz, up from around 4 million barrels a day in mid-July, the traders said. That’s around three-quarters of pre-war levels. Vortexa said last Monday that the 7-day average of oil flows through the waterway was close to 10 million barrels a day.

The increasing volumes come as Washington and Tehran remain in a stalemate over the Iran war, with control of Hormuz the main point of contention. Global benchmark Brent oil is trading near $87 a barrel, down from above $120 in late April.

Qatar and Kuwait began shuttling cargoes through Hormuz around June, and have ramped up volumes despite the risk of Iranian attacks. A Kuwait Petroleum Corp. supertanker was struck earlier in August as it was transiting the chokepoint, the country said in representations to the UN’s shipping watchdog.

QatarEnergy, meanwhile, offered this week to sell its crude on a ship-to-ship transfer basis outside Hormuz in the Gulf of Oman.

KPC and QatarEnergy didn’t respond to requests for comment. Several phone calls to Kuwait’s oil ministry went unanswered.

The so-called shuttle trade has evolved because few vessels are willing to take the risk of transiting Hormuz. As a result, gulf producers have either used their own fleets or hired the tankers that will risk a crossing at exorbitant rates to get cargoes through the waterway and then transfer them onto other ships.

Kuwait-which has a fleet of 11 supertankers, according to the Equasis shipping database-has mostly used its own vessels. The majority of those very large crude carriers haven’t issued any satellite signals for more than two months, ship-tracking platforms show, suggesting they have turned their transponders off, or gone dark.

The country’s success in getting oil through Hormuz means it has been able to offer cargoes on the spot market, the traders said. Those volumes are in addition to what it had committed to long-term customers in East Asia, they said.

Qatar’s oil has generally been carried by the commercial tanker fleet, the traders said. TotalEnergies SE said this week it was one of the biggest carriers of Qatari barrels.

A trillion-dollar artificial intelligence company, according to the Bases Conversion and Development Authority (BCDA), spent two months studying New Clark City for a data center. It chose Johor, Malaysia instead. The reason given by the BCDA was electricity. There was not enough of it, and there would not be enough of it soon enough to matter.

That single rejection now explains a month of official contradiction. In July, the Department of Information and Communications Technology was telling reporters that modern data centers recycle their own water, that some desalinate and share the surplus with nearby towns, and that Secretary Henry Aguda was personally telling Amazon Web Services and Google to build in the Philippines instead of elsewhere.

By August 11, BCDA President Joshua Bingcang and Board of Investment Undersecretary Ceferino Rodolfo were saying, on the record, that no AI data center will be built at New Clark City at all, that the earlier framing was ‘just a misconception,’ and that the 1,620-hectare site is now zoned for semiconductor fabrication, microchip assembly, and the building of AI hardware components, not server farms. Bingcang added, almost in passing, that data centers do not generate many jobs anyway, a smaller and quieter claim than the hub-wide job figures Aguda had floated in July.

Manila is telling itself the same story as Aesop. The fox decided the grapes were sour only after it could not reach them. A government does not discover, unprompted, that hyperscale infrastructure was never really the plan. It discovers this after the investor it courted studies the grid for two months and leaves for a country that already has the power.

The revised framing is not simply the government saving face. Pax Silica’s stated purpose now includes securing supply chains for critical minerals and computing components among partner nations, which places the Philippines inside a contest larger than any single data center. China refines most of the world’s rare earths and critical minerals, and the countries that signed on to Pax Silica are, among other things, agreeing to build supply routes that do not run through Beijing.

A manufacturing hub making chip components is a genuine seat at that table. It is a smaller seat than the one the country wanted in July. But the difference between the two is the electricity Malaysia has and the Philippines does not.

The unnamed investor’s choice of country points at what Malaysia can now support. Racks Central, based in Singapore, is building Southeast Asia’s largest AI data center campus in Johor, a US$6.7 billion project needing 100 megawatts at first and 510 megawatts by 2028, drawing cooling water from a reservoir already built for the purpose and running it on solar, biomass, and hydropower already online. The capacity that made Malaysia the answer is not in question. The Philippines offered land, tax breaks, and a promise that power would arrive by 2028. Malaysia already had the power.

Multinational investment bank Morgan Stanley’s own numbers explain why that gap matters more now than it would have two years ago. A hyperscale facility running at full efficiency, in the bank’s arithmetic, rents US$25 billion of computing a year to sell only US$23 billion of output, and the bank expects the selling price of that output to keep falling as China’s DeepSeek open-weight models undercut the closed American labs on price. An exchange that lists oil and corn futures opens trading in GPU rental contracts on October 5.

When a product becomes a commodity with a public futures price, the sites that host it stop competing on hospitality and start competing on the one input that determines the cost of the commodity itself: electricity, delivered now, at scale, without qualification. A country building chip components for that commodity, rather than hosting the commodity’s production directly, is betting on a steadier and less capital-intensive corner of the same supply chain. This may be the wiser position, even if it happened by accident.

Manufacturing components for critical minerals and AI hardware is a real business and a defensible one, arrived at only after the larger prize walked out the door.

Nobody forced the company to leave. It did the arithmetic Malaysia’s grid could satisfy and the Philippines could not, and it left without waiting to see if Manila’s 2028 promise arrived on schedule. What the Philippines kept afterward, a manufacturing seat in someone else’s supply chain, is smaller than what it lost. It is also the only seat that was ever actually on the table. Whether the government can make even that much work is still unproven.

E-mail me at mangun@gmail.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis provided by AAA Southeast Equities Inc.

TEN songs, one winner. The Philippines will finally make its debut in the Eurovision Song Contest and is now looking for its entry to be finalized on the Philippine Selection Night on August 30.

The Eurovision Song Contest is a long-running TV music competition held by the European Broadcasting Union (EBU), with only EBU members eligible to participate. However, its expansion into Asia has enabled several countries in the region to host their own events.

Participating countries can only enter one song each. As such, the Philippines will hold ‘Pili, Pinas,’ the Philippine Selection Night, to finalize which original song will be making its way to the world stage. The 10 finalists are as follows: ‘Between Bituin,’ penned by Jungee Marcelo and performed by P-pop group DNA; ‘Beyond Broken Repair,’ penned by Angelo Gonzales and performed by SAGA; ‘Cheri[e],’ written by Nar Cabico, and performed alongside Elha Nympha, Esang de Torres, and Lance Reblando; ‘Di ‘Yan [Red Flag]’ composed by Jason Marvin Hernandez and performed by Jason Dy and Sassa Dagdag;

‘Good for You’ by Hazel Faith and interpreted by Ryssi Avila; ‘Make It Exist’ by Angelo Calucin and performed by AJAA; ‘Mapadama’ by Jungee Marcelo and Jeremy Glinoga, and performed by JM dela Cerna and Marielle Montellano; ‘Reason To Leave’ by Stephen Tan and interpreted by KHIMO; ‘Round N’ Round’ by Julius James de Belen and John Michael Conchada, and performed by VVINK and WRIVE Russu; and ‘Sobra Sobra’ by Nica del Rosario and Mat Olivades, and performed by Carmelle.

Listen to them before the Philippine Selection Night, as these songs were released on streaming platforms on August 17. The winner of this competition will present their song at the Eurovision Song Contest Asia 2026, to be held in Bangkok, Thailand on November 14, with ABS-CBN serving as its broadcast partner.

The Philippine government is expected to miss its growth targets anew, with the Asean+3 Macroeconomic Research Office (Amro) further cutting its outlook for the country for 2026 and 2027.

Amro on Thursday lowered its growth forecast for the Philippines to 3.4 percent in 2026 from 4.1 percent previously, and to 4.8 percent in 2027 from 5.5 percent.

If realized, both forecasts would fall short of the Development Budget Coordination Committee’s (DBCC) recalibrated growth targets of 3.5 percent to 4.5 percent for 2026 and 5 percent to 6 percent for 2027.

The DBCC has yet to hit any of its annual growth targets since the start of the Marcos administration.

Amro Mission Chief Jinho Choi said the Philippines is facing two shocks: an external, supply-driven shock and a domestic demand shock. These have contributed to the economy’s slowdown for four consecutive quarters through the second quarter of 2026.

‘This year’s growth will be mainly made by weaker private consumption amid higher inflation and sharp contraction in public investment,’ Choi said during a media briefing.

Official data showed that GDP growth slowed for four consecutive quarters, from 3.9 percent in the third quarter of 2025 to 3 percent in the fourth quarter. Growth eased further to 2.8 percent in the first quarter of 2026 and 2.3 percent in the second quarter.

Choi said the economy could still draw support from a gradual recovery in public construction and strong exports, which is expected to grow by around 10 percent this year, in the second half.

Amro Chief Economist Dong He, meanwhile, said the recovery in public investment will be critical to strengthening domestic demand and supporting growth.

‘Public construction has to accelerate in order for domestic demand to be stronger to even achieve the 3.4 percent forecast we have,’ He said.

In the medium-term, He said the Philippines needs to build more resilient infrastructure, improve the affordability and reliability of electricity, and strengthen its capacity to withstand climate-related shocks to attract more foreign direct investment.

‘All these would help the economy to start a path of higher median term growth,’ He said.

He said, however, that it was too early to determine whether the Philippines could return to its targeted growth path by 2028, as this would depend on developments in 2026 and from 2027 onward.

Inflation seen easing

Meanwhile, Amro also lowered its inflation forecasts for the Philippines to 5.4 percent in 2026 from 5.7 percent previously, and 3.8 percent in 2027 from 4.1 percent.

If realized, inflation would return to within the Bangko Sentral ng Pilipinas’s 2 percent to 4 percent target range by next year.

Choi said the revisions reflected recent developments in both headline and core inflation in July, as well as milder expectations for global oil prices.

Philippine headline inflation eased to 6.2 percent in July from 6.4 percent in June, while core inflation slipped to 4.2 percent from 4.4 percent.

Average headline inflation stood at 5 percent from January to July.

‘We don’t know whether this is a big down or is going to be a temporary modulation,’ Choi said, noting that uncertainty remains over the Middle East conflict and its potential impact on global oil prices.

He said Amro’s latest forecast incorporates milder oil-price assumptions, but risks remain on the upside given the uncertainty surrounding the conflict.