Category: Philippine Star

The government needs a deeper diagnosis of the Philippine economy’s sharp slowdown and should go beyond catch-up spending to address structural weaknesses that are dragging investment, consumption and productivity.

In a report, GlobalSource Partners economists Diwa Guinigundo and Wilhelmina Manalac said the Philippines’ 2.3-percent growth in the second quarter was ‘deeply disappointing, but hardly surprising.’

They said domestic growth drivers had already been weakening even before external shocks such as the Middle East conflict and higher energy prices.

The report said faster infrastructure implementation and government catch-up programs could support a gross domestic product (GDP) rebound in the second half, but would not be enough to address deeper weaknesses.

It said the government should focus on restoring investor confidence, improving the regulatory and permitting environment, strengthening education and human capital, addressing food and energy vulnerabilities and pursuing a clearer industrial policy geared toward productivity and higher-value investment.

‘The challenge is therefore not simply to achieve a statistical recovery towards the government’s 3.5 to 4.5 percent target, but to restore the foundations for sustained, investment-led and productivity-driven growth,’ Guinigundo and Manalac said.

‘Otherwise, further disappointing and entirely expected growth numbers may lie ahead.’

GDP growth slowed from 2.8 percent in the first quarter and 5.4 percent a year earlier. First-half growth averaged just 2.6 percent, well below the government’s full-year target of 3.5 to 4.5 percent. Growth would need to reach about 4.4 percent in the second half just to hit the lower end of the target.

Investment emerged as the biggest drag, with gross capital formation contracting by 9.2 percent in the second quarter. Meanwhile, household consumption grew by only 2.8 percent.

Bank of the Philippine Islands lead economist Emilio Neri Jr. warned that prolonged investment weakness could reduce the economy’s future growth potential.

‘Prolonged weakness in investment can eventually limit the economy’s ability to expand output. If investment spending remains weak due to elevated inflation, policy uncertainty and softer demand conditions, the economy could emerge from the current slowdown with a lower growth potential than before,’ he said.

BPI sees scope for growth to improve in the second half as favorable base effects and better budget execution support public construction. However, inflation risks from oil prices, adverse weather and possible second-round effects remain elevated.

Neri said the Bangko Sentral ng Pilipinas (BSP) could need to tighten policy further, adding that ‘a larger rate increase later in the year cannot be ruled out’ if food price pressures intensify.

‘A potential rebound in economic growth in the second half of the year may allow BSP to place greater emphasis on anchoring inflation expectations,’ he added.

The government can tap P27.93 billion from the National Disaster Risk Reduction and Management Fund (NDRRMF) to support ongoing disaster response amid the heavy rains and flooding brought by tropical cyclones Luis and Maymay and the enhanced southwest monsoon.

In a statement sent to The STAR, the Department of Budget and Management (DBM) reported that the NDRRMF had an available balance of P27.93 billion as of Aug. 7. The fund was allotted P39.82 billion under the 2026 General Appropriations Act.

‘Based on the latest available figures, the government continues to have resources that may be tapped to support ongoing disaster response, relief, rehabilitation and other urgent requirements arising from the continued rains and other calamities,’ the DBM said.

The DBM said implementing agencies also have P14.59 billion in available Quick Response Funds, based on obligations reported as of June 30 and allotment releases as of Aug. 7.

QRFs are standby funds that agencies can immediately use to assist areas hit by calamities and crises.

The availability of disaster funds comes as damage from the recent weather disturbances continues to rise.

As of yesterday, estimated damage to infrastructure has reached more than P2.109 billion, while agricultural losses involving crops, livestock and poultry have exceeded P196.8 million. The disaster has also damaged 972 houses in affected provinces.

The National Disaster Risk Reduction and Management Council said 3.15 million people are affected nationwide.

Around 1,265 classrooms have been destroyed as of 8 a.m. yesterday, the Department of Education said.

State weather forecasters are now monitoring Tropical Storm Nangka

Pru Life UK has launched a cancer-focused insurance product offering benefits for both early and late-stage cases, as the insurer seeks to address the financial strain faced by Filipino families dealing with the disease.

The insurer said PruCare Cancer Protect is a 10-year renewable term insurance plan that provides up to 100 percent of the sum assured for eligible late-stage cancer claims and 50 percent for eligible early-stage cases.

If an early-stage benefit has already been claimed, the amount will be deducted from the benefit for a subsequent late-stage cancer claim. Policyholders diagnosed with catastrophic late-stage cancer may also receive an additional benefit equivalent to 20 percent of the sum assured.

The launch comes as cancer continues to pose both health and financial risks to Filipino households.

Pru Life UK, citing studies, said more than 40 percent of families affected by cancer experience financial hardship during treatment, with some patients forced to discontinue care.

The insurer also cited estimates showing that around 150,000 to 190,000 new cancer cases are recorded in the Philippines annually, with many patients diagnosed at later stages when treatment becomes more complex and expensive.

‘As healthcare costs continue to rise, preparation has never been more important,’ Pru Life UK chief product officer Garen Dee said.

‘We want to help more Filipinos take proactive steps toward protecting themselves and their loved ones. Having the right financial protection allows families to focus on treatment and recovery instead of worrying about the financial consequences of a serious illness,’ Dee said.

Apart from cancer benefits, policyholders who complete a 10-year term without a successful claim may receive up to 50 percent of their total premiums paid back.

The product also allows policyholders to renew their coverage every 10 years without being reassessed for health or eligibility, which the company said is intended to simplify access to continued protection.

Pru Life UK is also offering health-related services through its partnership with The Medical City. These include discounts on selected outpatient preventive screenings, discounts on selected inpatient services for patients diagnosed with certain critical illnesses and medical concierge support for scheduling tests, doctors’ appointments and hospital navigation.

Customers may also access a non-communicable disease risk assessment aimed at identifying potential risks for cancer and other chronic conditions.

Filinvest Land Inc. (FLI), the property developer owned by the Gotianun family, booked higher earnings in the first half, buoyed by expanding recurring income streams and supported by the company’s diversified portfolio.

FLI saw its net income improve by four percent year-on-year to P2.21 billion in the first semester, overcoming industry headwinds for the second straight quarter.

Revenues grew by 2.9 percent to P12.57 billion on the back of solid gains across both property sales and rental operations.

FLI said the company’s commercial and industrial leasing businesses continued to serve as powerful pillars of stability during the period.

Leasing revenues of the retail mall business rose by 12 percent to P1.47 billion as targeted asset enhancement initiatives and healthy tenant engagement lifted mall occupancy to 81 percent.

Office leasing revenues expanded by 2.4 percent to P2.54 billion, supported by a 100-percent renewal rate for all second quarter lease expiries.

FLI said the industrial segment also continued to capture robust demand, particularly through the 33-hectare mega lots at the Filinvest Innovation Park – New Clark City, as corporate occupiers aggressively secure strategic logistics and manufacturing hubs.

‘Our leasing and recurring income businesses continue to provide stability and resilience, giving us a balanced platform for growth. As market conditions evolve, we remain focused on execution, capital efficiency and capturing demand across our residential, commercial and industrial segments,’ FLI president and CEO Tristan Las Marias said.

Las Marias said FLI’s first half results demonstrate the company’s ability to translate demand into earnings through a disciplined and diversified business model.

FLI reported a remarkable rebound in sales activity during the period, with total reservation sales surging by 50 percent year-on-year to P12.5 billion.

It said momentum culminated in June, hitting P3.7 billion, the company’s highest monthly reservation level since 2018.

The growth was attributed primarily to strong ready-for-occupancy (RFO) sales, which totaled P6.8 billion in the first half.

Las Marias said the strong pickup in reservation sales, particularly in RFO, reflects both improving buyer activity and the strength of FLI’s product offering across key markets.

The wonder of this so-called Pax Silica project being considered for the New Clark City is how little information has been made available to the public. We could not have a meaningful public discussion about this unless all the details are known.

What we have are general descriptions of what might be built in the designated high technology zone in Tarlac. No one seems to be sure if this will be predominantly a data center concentration or an assembly of factories using our mineral resources to make computer chips.

If it is intended to be a concentration of data centers, the area will require huge volumes of power and water for cooling – both of which are evidently not present in the zone. Data centers have a huge appetite for power – which, in this country, remains scarce. The country, in the main, confronts a looming water shortage.

Data centers are notoriously capital intensive enterprises. After the initial construction phase, the proposed zone will employ very few people.

Groups opposing the Pax Silica project focus on the power and water requirements the undertaking entails. They fear the already strained water resources in Central Luzon will worsen.

Presumably, new power generating capacity will have to be built to support this project. At present, we have a negligible power surplus. This is the reason power is expensive and supply always tenuous. Building new generating capacity will require at least a decade of gestation.

Those supporting this project argue that it is a chance for the country to leapfrog its development – although very little downstream linkages are indicated. At first glance, this resembles the old ‘special economic zones’ model that failed us in the past.

If the project is intended principally as a chip manufacturing zone, the considerations seem to be principally geopolitical. It will be a backup production zone to guard against the loss to China of Taiwan’s chip production powerhouse. Luzon, prone to earthquakes and other natural calamities, seems to be an unlikely candidate for highly sensitive technological production.

Lately, some information has been offered that the project will require relocation of indigenous communities and the loss of agricultural farmland. This should raise red flags.

The dominant development paradigm emphasizes measurable increases in output while giving little weight to the concerns of traditional communities. This should not be the case.

If the Pax Silica project requires the eradication of traditional communities and lifestyle, its positive impact on the nation’s development must be proven to be overwhelming. Indigenous peoples must be given a weightier voice in shaping the nation’s development.

Empty bag

The Maharlika Fund, which took money away from otherwise productive financial institutions, has made very few investments to date. One of those few investments is in a mining project located in Pasil, Kalinga.

The Maalinao-Caigutan-Biyog (MCB) Copper Gold Project was made possible by a Memorandum of Understanding between the mining companies and the Balatoc indigenous community. Under the agreed framework, the IP community is to receive royalties and other financial benefits, employment, livelihood opportunities, infrastructure, social development programs and other commitments linked the progress of the project.

Unfortunately for the Balatoc indigenous community, the project has been delayed due to a legal squabble among the companies partnered for this undertaking. The community had hoped this project would be their chance to break from the margins and rewrite their destiny.

The legal squabble involves the usual fight for control of the project. It involves Celsius Resources, Makilala Mining Company Inc. (MMCI), Sodor, PMR, Kiri Industries and former Celsius executive chairman Julito Sarmiento.

Ironically, it seems the Maharlika Fund’s decision to fund the project heightened the infighting among the venture partners. The infighting involves complex legal issues about who controls what in this large project.

Celsius initiated legal and arbitration actions over its objections to an MMCI-Kiri off-take arrangement. The company likewise raised concerns over the assignment of Maharlika’s loan position to Equinnaire Holdings, which is a Kiri subsidiary. There are a host of other legal issues that threaten the viability of this mining project.

Until all these issues are resolved, it is not clear who actually controls the company responsible for the MCB project, the company that will honor the commitments made to the indigenous community.

The promises to the indigenous community are all suddenly in question. If the project is discontinued, the commitments will not be fulfilled. It is not just a mining venture that is at stake here. A community’s rare chance to redefine its destiny is on the line.

Maharlika is exposed to this project to the tune of $76.4 million. This is understood as a bridge loan to support feasibility work, engineering and early development activities. The money will be repaid over the mine’s projected 35-year lifeline. Should the project dissemble, the money cannot be repaid.

The conversation among the squabbling parties has now definitely shifted from development to arbitration, corporate control, financing rights and competing claims. It seems Maharlika unwittingly walked into a corporate minefield. This is not flattering for an entity described as a ‘sovereign fund.’

The Balatoc community, although not a party to the corporate dispute, stands to lose the most. This mining project represented the only way out for the community to recast its destiny, bring its young out of the margins.

Now they could be left holding an empty bag.

The defense team is standing firm that there was no misuse of the P612.5-million confidential funds for Vice President Sara Duterte as the Senate impeachment trial against her marked Day 15 yesterday.

‘With the prosecution and defense presenting its evidence later on, you’ll also get a better picture of what our defenses really are, what are the real reasons why we say that there was no misuse… of confidential funds. So let’s just wait,’ defense counsel Michael Poa said.

Poa defended the use of confidential funds for a Christmas party and a tree-planting activity following the testimony of prosecution witness Commission on Audit (COA) supervising auditor Xylene Mae del Campo.

‘Apparently, confidential funds were not used for that event, but for those activities to maintain or prepare – not prepare, but to secure those events. In due time, we’ll have to address that also, to see what exactly is the use of confidential funds and what is the scope of (how) it was used,’ Poa added.

The Office of the Vice President (OVP) has been ordered to return to the government P448.287 million in disallowed confidential funds.

Del Campo, of the COA-Intelligence and Confidential Funds Audit Office, said Duterte was among those to be held accountable for the disallowed funds, as head of the OVP.

The P448.287 million represents the P73.287 million that was disallowed from the OVP’s P125-million confidential fund in December 2022 and P375 million in cash advances released during the first three quarters of 2023.

The OVP funds form part of the P612.5 million in confidential funds at the center of Article I (misuse of confidential funds) of the impeachment case against Duterte.

House prosecutors have accused Duterte of misusing P500 million released to the OVP from December 2022 to September 2023 and another P112.5 million released to the Department of Education in 2023 when she was DepEd secretary.

The COA affirmed the disallowance on April 10 this year. The OVP filed a motion for reconsideration in May, which remains pending.

The COA issued another Notice of Disallowance (ND) on March 31, 2026, covering the entire P375 million in confidential funds released to the OVP during the first three quarters of 2023.

No mention

The defense said that the ND issued by the COA on Duterte’s confidential funds did not indicate misuse of funds, corruption and misappropriation.

During cross-examination of Del Campo, defense counsel Kristine Ferrer tried to establish that there were no irregularities in the use of the P612.5-million confidential funds of the OVP and DepEd.

‘Is there a word of misuse of funds? Is it a ground for disallowance? If you go over the ND,’ Ferrer asked.

‘There is no misuse of funds but…’ Del Campo replied before she was cut off mid-sentence by Ferrer.

‘I’ll ask you later if I have questions on that,’ Ferrer said.

‘So, there is nothing there. How about the word corruption?’ Ferrer asked.

Del Campo said based on the wording of the notice of disallowance, there was no mention of ‘corruption.’

‘OK. How about misappropriation? Is there anything written there?’ Ferrer asked.

‘The word itself is not here but…’ Del Campo said. Ferrer cut Del Campo anew, saying ‘that’s my only question.’

Ferrer said Del Campo reviewed a total of 3,647 acknowledgement receipts – 1,823 for the OVP and 1,824 for DepEd.

Palace: No hand in DOJ case

Malacañang denied having a hand in the Department of Justice (DOJ)’s filing of a case of grave threats against the Vice President.

Palace press officer Claire Castro said President Marcos is focused on his work and would not waste his time on people ‘who do nothing and contribute nothing.’

‘The President is not focusing on the Vice President. So, if she was charged, don’t blame the President because it’s her own doing,’ Castro said over radio dzBB.

The DOJ on Tuesday confirmed the filing of the case against Duterte before the Quezon City Regional Trial Court.

The case is in violation of Article 282 of the Revised Penal Code, in relation to Section 6 of Republic Act 10175 or the Cybercrime Prevention Act.

Asked about her views as a lawyer, Castro said criminal prosecution can proceed concurrently against an impeachable official while an impeachment trial is ongoing.

Castro clarified that the Vice President is not immune from lawsuits. ‘Charges can be filed against her,’ she said.

The three branches of the Lopez family majority are set to invest P2.2 billion in ABS-CBN Corp. to help the media company meet obligations to long-serving employees and support its recovery plans.

‘ABS-CBN has been part of this family for generations,’ Eugenio ‘Gabby’ Lopez III said in a statement on behalf of the family members.

‘The mission my father set out to pursue remains the heartbeat of this family – to be in the service of the Filipino. We are putting our own money behind this conviction,’ he said.

The investment will be made by the three branches of the Lopez family majority, comprising Crème Investment Corp., Mantes Corp. and Presta Holdings Co. Inc.

The funds will come from their personal resources.

Details surrounding the investment are to be finalized with ABS-CBN.

ABS-CBN net loss expanded by 63 percent to P813 million in the first quarter from P500 million a year ago, due to the absence of election placements and slower economic growth.

ABS-CBN’s financial decline can be traced back to 2020 when Congress denied its franchise renewal at the height of the pandemic.

The Lopez-led network is confident of recovery in the remaining quarters of 2026, banking on the showing of a new movie starring a popular love team and a world tour by girl group BINI.

Crème Investment, the holding company through which Gabby’s branch of the family owns a 25.7-percent stake in Lopez Inc., the holding company of the Lopez Group, has recently completed the sale of that shareholding to tycoon Ramon Ang.

Gabby earlier said he sold for two reasons: ‘The first is my family. This dispute has not been good for any of us, or for the people who work in our companies. This allows us to take a step towards the restoration of family peace.’

‘The second is that it allows me to channel our family’s resources into businesses aligned with our personal mission. We will announce more on this in due time. Our families have known Ramon a long time. I am confident he will be a good partner to Lopez Inc.,’ he said.

A wife had his 54-year-old husband arrested after allegedly attempting to force her to have sex with her and for committing an indecent act in front of her in Sitio Motra, Barangay Tisa, Cebu City on August 10, 2026.

The suspect and his wife, whose names were withheld, were both residents of Barangay Tisa.

According to the initial report of Police Station 10 of the Cebu City Police Office, the incident allegedly happened at around 9 p.m. while the victim was sleeping upstairs in their house with her granddaughter.

The victim told police that her husband allegedly woke her up and attempted to remove her pajamas while asking her to have sex with him.

She allegedly refused and tried to go back to sleep. However, the suspect allegedly knelt in front of her while naked and performed an indecent act in front of her.

The victim then reportedly stood and proceeded to a nearby store to eat.

According to the police report, the suspect followed her to the store and allegedly removed her pajamas in front of their neighbors.

The incident prompted the victim, with the assistance of Barangay Public Safety Officers (BPSO) of Barangay Tisa, to bring the suspect to Police Station 10 at around 12:50 p.m.

Police subsequently placed the suspect under temporary custody and informed him of the nature of the offense and his constitutional rights in a language known to and understood by him.

The suspect is facing an alleged violation of Republic Act 9262, or the Anti-Violence Against Women and Their Children Act.

Police said the appropriate complaint is being prepared for filing before the court.

The investigation into the incident remains ongoing.

Earnings of SM Investments Corp., the parent company of the SM Group, expanded by eight percent in the first half, supported by sustained consumer demand and the strength of its diversified business model.

SM Investments’ consolidated net income from January to June improved to P45.9 billion from P42.6 billion in the same period last year.

Banking accounted for 47 percent of the group’s net income, followed by property (27 percent), retail (15 percent) and portfolio investments (11 percent).

Revenues during the first semester increased by six percent to P339.2 billion from last year’s P319.2 billion.

SM president Frederic DyBuncio said consumer spending in its retail stores and malls remained healthy despite recent economic shocks.

‘The Filipino consumer was tested during the first half of the year, but our businesses proved to be resilient,’ DyBuncio said.

‘Steady demand across our consumer-led businesses plus solid contributions from our portfolio companies continue to reflect the strength of our diversified business model. This gives us the confidence to keep investing for long-term growth,’ he said.

SM Retail reported a five-percent increase in net income to P8.9 billion, as the company efficiently managed expenses amid a higher inflation environment.

Food retail posted steady sales growth across its supermarket and minimart chain formats, while specialty retail’s higher sales were driven by the home, other fashion and kids categories.

As the group’s largest consumer-facing business, the SM Retail business contributes significantly to recurring cash flows at the parent level.

SM Investments said consumer demand was likewise evident in the group’s mall business, where revenues rose by eight percent to P41.8 billion on the combined effect of higher occupancy, stronger tenant sales and improved operational efficiency.

The group also saw stronger performance from its portfolio investments, driven by a turnaround in Atlas Consolidated Mining and Development Corp. due to higher copper prices.

2GO Group Inc. registered revenue growth across all categories, supported by higher passenger volumes in the travel segment and higher volumes in the logistics category from online purchases, while Philippine Geothermal Production Co. Inc. benefited from adjustments in energy prices.

DyBuncio said SM Investments remains positive about its outlook for the second half of the year, while staying mindful of macroeconomic uncertainties.

‘Our diversified portfolio, prudent balance sheet and disciplined approach to capital allocation position us well to continue investing in the Philippines and creating long-term value for our customers, communities and shareholders,’ he said.

Most dams being closely monitored by the Philippine Atmospheric, Geophysical and Astronomical Services Administration continue to record a slight increase in their elevations.

As of 4 p.m. yesterday, the elevation in Angat Dam in Bulacan had increased to 177.69 meters from the previous day’s 175.6, or only 2.31 short of its minimum operating level of 180 meters.

Angat supplies more than 90 percent of Metro Manila’s potable water, provides irrigation water to palay farms in Central Luzon and generates power for the Luzon grid.

Meanwhle, Ambuklao Dam in Benguet opened its spillway gate to reduce its water level by a centimeter.

Binga Dam discharged water, but the elevation remained higher by 20 centimeters than its normal high-water level.

San Roque in Pangasinan logged the highest increase with 2.83 meters, although the elevation, at 263.17 meters, remained below the dam’s normal high-water level of 280 meters.

Pantabangan in Nueva Ecija and Magat in Isabela both reported increased elevations by approximately 86 and 90 centimeters, respectively.

From the previous 183.11, the water level in Pantabangan rose to 183.97 meters yesterday.

Magat Dam operators said the water level increased to 177.25 from 176.35 meters.

Operators of La Mesa and Caliraya dams reported a decline in the water level