Category: Philippine Star

For those of us working in the foreign service, what is happening in our country today is so frustrating, to say the least. Here we are vigorously promoting the Philippines like hell, competing with our Asian neighbors for a ‘slice of the pie’ – only to be confronted with this horrific corruption scandal the country is facing.

Countries are considering suspending funding for a bridge project linked to the scandal, citing concerns over governance and transparency. Other bilateral donors and aid agencies are quietly reviewing their exposure. What begins with a single delayed project can quickly cascade: procurement pipelines slow down and lenders hesitate to approve new funding tranches.

The Philippines finds itself at a precarious crossroads, with a broadening corruption scandal surrounding flood control and infrastructure projects dominating headlines – triggering public outrage and drawing scrutiny from donors and investors alike. What initially appeared as a domestic political crisis has evolved into a reputational challenge with direct implications on foreign direct investments, international aid and the country’s broader economic trajectory.

For the business and finance community, this episode is not merely a governance story: it cuts right to the heart of how risks are priced, how projects are financed and whether the Philippines can sustain its narrative as one of Southeast Asia’s rising investment destinations.

International capital flows need to be protected. For multilateral development banks, bilateral donors and private financiers alike, the primary question is not simply ‘What is the return?’ but ‘Can I trust the money to be used as intended?’

Revelations of kickbacks, substandard works and inflated contracts in government-funded flood control projects directly undermine that trust. Once credibility is shaken, the cost is not only reputational. Donors may suspend disbursements, impose stricter conditionalities or redirect funding to countries with more predictable governance frameworks. Private investors may demand higher risk premiums or shift capital to competing destinations like Vietnam or Indonesia.

This reputational contagion extends beyond aid – several foreign firms operating in the Philippines already felt the effects of ongoing graft probes. Heightened uncertainty is forcing multinationals to reassess whether the Philippine market justifies added risks. For those weighing expansion, the scandal could tip the balance toward postponement or cancellation.

Investors in emerging markets are quick to react to risks. Political and governance scandals translate into higher spreads on sovereign debt, greater volatility in equity markets and a weaker peso as confidence ebbs. This is no small matter for the Philippines, which depends on both remittance inflows and foreign capital to balance its current account.

If international financial institutions perceive systemic weaknesses in procurement and anti-corruption enforcement, ratings agencies may flag governance as a structural risk, raising borrowing costs for both government and private issuers, squeezing fiscal space and corporate expansion plans alike.

In a region where capital moves quickly, perception matters as much as fundamentals. Investors ask not only whether the Philippines is growing – but whether it is being governed properly.

Another under-appreciated consequence is the alignment of this scandal with environmental, social and governance (ESG) frameworks. Much of the corruption has been uncovered in flood control and water management projects – sectors central to climate resilience.

Donors are increasingly deploying capital with ESG criteria. If the Philippines becomes perceived as a governance liability precisely in those sectors, it risks exclusion from the fastest-growing streams of concessional and green financing. For private investors, association with projects tainted by corruption also carries reputational risk that many boards will not tolerate.

At home, the scandal threatens to stall infrastructure rollout – a backbone of the government’s growth strategy. Delayed projects mean lost jobs, fewer contracts for suppliers and weaker overall economic gains.

Moreover, corruption diverts scarce fiscal resources. Every peso siphoned away through kickbacks is a peso deprived for education, health or legitimate infrastructure, eventually eroding productivity, widening inequality and suppressing domestic demand – all of which matter to investors assessing market fundamentals.

What needs to happen next is key because the damage is real, yet not irreparable. The Philippines can still turn this crisis into an opportunity for reform through 1) swift, credible and independent investigations. Business and financial partners are watching not only what the government says, but what it does. An independent anti-corruption body with prosecutorial power would reassure donors that accountability is not cosmetic; 2) full transparency. Procurement records, contract details and audit reports should be made public. Sunlight is the best disinfectant – and also the most persuasive argument to skeptical investors that the government has nothing to hide and 3) visible accountability. Symbolic prosecutions will not suffice. High-level convictions, restitution of stolen funds and protection of whistleblowers would send the clearest message that the Philippines is serious about changing course.

For President Ferdinand Marcos Jr., this a test of leadership, with the scandal presenting both peril and possibility. Peril, because mishandling could bolster perceptions that his administration is unwilling or unable to confront corruption. Possibility, because success in restoring trust could provide the lasting legacy his presidency seeks.

The unfolding corruption scandal has already eroded confidence and frozen some capital flows. Left unchecked, it could raise risk premiums, drive away investors and curtail access to international aid just when the Philippines needs it most.

Yet the same crisis can be a catalyst. If the government acts decisively, engages transparently and builds enduring institutions, the Philippines can emerge stronger – with renewed investor trust and reinforced governance.

For the business and finance community, the message must be clear that there is decisiveness in making necessary reforms – because this moment of crisis can actually open a window of opportunity.

Clearly, we must seize the moment before the moment seizes us.

It took some time, but the Far Eastern University Tamaraws tallied their first win in the UAAP Season 88 men’s basketball tournament.

The Tamaraws finally put themselves in the win column after quelling the gritty Adamson Soaring Falcons, 64-58, Sunday at the Mall of Asia Arena.

Mo Konateh powered the Tamaraws with a solid statline of 18 points and 21 rebounds, to go with three assists, two blocks and an assist. Kirby Mongcopa chipped in 15 markers, five boards and two dimes.

‘We’re grateful to be blessed to be in this moment. We’re grateful to be… that God put us in this place to be like an example of resilience because we could have easily already feel pretty down about ourselves,’ he said.

‘But what I liked about my guys was after the disappointing loss to La Salle, we actually worked even harder. And we know in anything in life, once you get your back against the wall, you go harder or you give up. So, I’m so proud of them,’ he added.

After leading by as much as 11 points, 56-45, with 8:09 remaining in the game after a Mongcopa deuce, the Falcons stormed back and sliced the deficit slowly.

They trailed by just three, 58-61, with 1:44 remaining after a short jumper by Ced Manzano.

But Janrey Pasaol hit the dagger triple to push the lead to six, 64-58, with 1:28 left.

On the other end, Manu Anabo and Ray Allen Torres missed their attempts that would have inched them closer.

But a steal by Pasaol, as well as another turnover by Torres, sucked the air out of Adamson’s lungs.

Pasaol contributed 13 markers, six boards, five dimes and two steals. Neil Owens produced nine points for FEU.

Monty Montebon was the only double-digit scorer for the Falcons with 14 markers and seven boards. Matty Erolon backstopped with nine points.

With FEU’s win, only the University of the East Red Warriors are the lone team without a victory thus far. The Tamaraws and the Soaring Falcons are now tied in the standings at 1-3.

The Land Transportation Office will reshuffle all its LTO district chiefs following reports of underperformance, particularly in license plate distribution and enforcement of regulations against unregistered and colorum vehicles.

LTO chief Vigor Mendoza II said he has directed all regional directors to recommend the reassignment of underperforming district officers as part of efforts to improve efficiency and service delivery.

The directive came after the review of monthly accomplishment reports showed slow plate distribution, fewer apprehensions of vehicles with expired registration and declining operations against colorum vehicles.

‘While most of the district offices are doing well, a number of district officers are becoming complacent in their positions, especially those who have been holding the same office since the beginning of this administration,’ Mendoza said.

The LTO noted that the reorganization seeks to improve the performance of district offices and enhance the implementation of key programs, such as the faster distribution of license plates and release of vehicle registration documents within three days from purchase.

Mendoza reiterated his push for the same-day release of license plates and official receipt/certificate of registration or OR/CR of newly bought vehicles to reduce backlogs and improve customer service.

He noted that some district offices have failed to sustain outreach activities for licensing and vehicle registration, resulting in reduced public access to LTO services.

An LTO review also showed weaker enforcement against colorum vehicles, which legitimate transport groups say continue to affect their daily income by as much as 30 percent.

Clariss Guce and Dottie Ardina barely made a move on Moving Day, while Sam Bruce stumbled badly as Filipino bets faltered in the Epson Tour Championship in Indian Wells, California on Saturday (Sunday Manila time).

American rookie sensation Yana Wilson surged ahead, setting the pace heading into the final round and closer to a third career victory.

Guce, a two-time Epson Tour champion, struggled to find her rhythm through the first 11 holes, settling for pars before finally breaking through with a birdie on the par-4 12th. A bogey on the 14th, however, stymied any late momentum, though she salvaged her round with a birdie on 17 to card a 1-under 71. She stood tied for 44th at six-under 210, far off the pace set by Wilson.

Wilson fired a 66, offsetting an early bogey on No. 1 with seven birdies to reach 17-under 199 and grab a one-stroke lead over Sophia Schubert.

Ardina, backed by ICTSI, fared slightly better, rebounding from a bogey on the first with three consecutive birdies from No. 3. She added another birdie on the 12th, but a bogey on No. 16 saw her sign for a 70. She tumbled to a share of 50th at 211.

Bruce, who began the third round in promising position after rounds of 68 and 70, saw her hopes unravel early. Two double bogeys and a lone birdie in the first six holes spelled disaster, although she showed grit with a string of pars and a birdie on No. 17 to rescue a 74. She fell to 56th at 212, a far cry from her earlier form.

Meanwhile, Schubert, the first-round leader, roared back into contention with a 67, putting her just one stroke behind Wilson at 200, while Anne Chen, the 36-hole frontrunner, remains in striking distance at 201 after a steady 69, setting the stage for a thrilling three-way battle among the Americans in the final round.

In LPGA action, South Korea’s Youmin Hwang produced a stunning finish to capture her maiden title at the Lotte Championship in Hawaii. Trailing for most of the final round, Hwang birdied the last four holes for a 67 and a 17-under 271 total, edging compatriot and major champion Hyo Joo Kim by a single stroke.

Kim, who shot a solid 68, finished at 272, while Japan’s Minami Katsu secured solo third at 273 with a 69.

Hwang’s title charge seemed unlikely after a sluggish front nine of even-par 36. But a birdie on the 13th lit a spark, and her clutch closing stretch sealed a come-from-behind victory in dramatic fashion as she joined the growing list of Korean winners in the world’s premier ladies circuit.

Up to 100 families were left homeless after a fire broke out at a neighborhood in Malate in Manila on Friday.

The blaze started from a two-story house along Leveriza Street in Barangay 705 at 9:24 p.m., according to a report from the Manila Police District.

The MPD said most of the destroyed houses were made of light combustible materials.

The Bureau of Fire Protection raised the first alarm at 9:33 p.m. and elevated it to second alarm two minutes after. The BFP declared the blaze controlled at 10:50 p.m. and fire out at 12:03 a.m. yesterday.

According to the MPD, the blaze displaced 70 to 100 families. Investigators initially estimated property losses to be at P500,000.

The fire victims are sheltered at the Dakota covered court at the corner of Quirino Avenue and Asuncion Street, the MPD added.

In a report by ABS-CBN News, Barangay 705 chairperson Lara Teves said some residents blamed people who burn copper as having caused the blaze.

After a one-year hiatus, the IRONMAN 70.3 Davao is set not just for a comeback, but for an explosive return to the global triathlon scene as it kickstarts the 2026 season on March 22 with its milestone fifth staging.

This edition promises to be its most spectacular yet, cementing its place as the yardstick for IRONMAN 70.3 races in the Philippines and Asia-Pacific.

‘IRONMAN 70.3 Davao has evolved into more than just a race. It is a celebration of athletic excellence, cultural pride and community spirit,’ said Princess Galura, president and general manager of the organizing Sunrise Events Inc. – the exclusive IRONMAN licensee in the country – during the official launch.

The landmark event will set a new benchmark in endurance sports with an expected huge international turnout, a refined and world-class course, and a festival atmosphere that only Davao can deliver.

‘The fifth edition will elevate the racing experience like never before – with faster courses, richer cultural immersion, and unmatched community support,’ she added.

The 2026 IRONMAN 70.3 Davao will also serve as a global proving ground with competitors from across continents expected to converge in the King City of the South, drawn by the race’s reputation for top-tier organization, technical excellence and a course that balances speed, scenery, and soul.

From the dramatic swim (1.9km) in Talomo Bay framed by the majestic Mt. Apo, to the lightning-fast bike leg (90km) along the Davao City Coastal Road, and a scenic run (21.1km) flanked by thousands of local supporters, every segment is curated to deliver a world-class race-day experience.

Beyond the competition, IRONMAN 70.3 Davao 2026 will again serve as a beacon of community resilience and cultural pride. With the theme centered around Tribu Maisugon – a tribute to the courageous spirit of Dabawenyos – the event will transform the city into a living festival, spotlighting local art, heritage, and traditions.

‘We are honored to host the fifth edition of IRONMAN 70.3 in Davao,’ said acting Mayor Sebastian Duterte. ‘It’s more than a race – it’s a citywide celebration. Our people’s hospitality, energy, and commitment to excellence ensure that every athlete feels like a champion the moment they arrive.’

Registration is now open. For details, visit www.ironman.com/im703-davao or email sai.mayol@sunriseevents.com.ph.

The fifth edition also marks the most inclusive and ambitious edition to date, with a series of new events designed to broaden participation and foster a deeper connection with the community.

The Gwapa Dabawenya Run returns bigger than ever with three new categories – 21km Pinakagwapa, 10km Mas Gwapa, and 5km Gwapa Dabawenya. Celebrting the strength, beauty and empowered spirit of Dabawenyas, this event has grown into a movement of pride and participation.

The Sprint Distance Triathlon will also make its debut, tailored for newcomers, beginners and returning triathletes seeking a shorter but equally thrilling taste of IRONMAN racing.

The IRONKIDS Aquathlon will likewise offer a fun, inclusive introduction for young athletes through a swim-run format – planting the seeds of future champions and reinforcing the race’s legacy in grassroots sports development.

A refreshed emblem will also be unveiled to symbolize Davao’s resilience, diversity and the unbreakable spirit of the triathlon community. It represents five years of unforgettable moments, unity and progress.

Inflation likely quickened in September, with most economists expecting it to return to the Bangko Sentral ng Pilipinas (BSP)’s two to four percent target for the first time in six months, following a sustained stretch of subdued price growth.

Forecasts gathered by The STAR show inflation may have accelerated to between 1.9 and 2.5 percent last month. If inflation does breach the target in September, it would mark the first time it has climbed above two percent since February’s 2.1 percent print.

Metrobank chief economist Nicholas Mapa expects inflation to rise to 2.5 percent in September, citing upside pressures in vegetable and fish prices due to the impact of recent typhoons.

Lower electricity rates could partly offset the upside pressures in food prices, while pump prices may provide limited relief. ‘Pump prices also could be a source of downside pressure, but to a lesser extent, as gasoline and diesel costs increased on a monthly basis, tracking global markets,’ Mapa said.

Rizal Commercial Banking Corp.chief economist Michael Ricafort placed his own September inflation forecast at 2.1 percent year-on-year. He also said inflation could rise to two percent levels for the rest of the year.

UnionBank of the Philippines chief economist Ruben Carlo Asuncion penciled in a milder two percent print, up from 1.5 percent in August and 0.9 percent in July.

‘Upside risks stem from weather-related supply disruptions, higher wages in Metro Manila and faster cost pass-through, with core inflation already at 2.7 percent in August,’ Asuncion said.

‘On the other hand, continued rice deflation from tariff cuts and imports, soft global oil prices, weak China producer prices and subdued fiscal spending continue to provide downward pressure,’ he added.

Jonathan Ravelas, senior adviser at Reyes Tacandong and Co., also expects inflation at 1.9 percent, attributing the increase mainly to food and transport costs.

‘The projected increase in September was mainly due to higher food and vegetable prices, plus some transport cost adjustments. It’s a reminder that food supply remains vulnerable,’ Ravelas said.

He added that inflation could edge higher in the last quarter due to holiday demand, weather risks and oil market movements. ‘But barring major shocks, it would likely stay below or at two percent,’ Ravelas said.

Bank of the Philippine Islands lead economist Jun Neri likewise projected a 1.9-percent reading in September or about 0.2 percent higher on a month-on-month basis. Neri attributed the uptick to higher fish prices amid heavy rains and rising rice costs following the government’s suspension of rice imports.

He pointed out that lower electricity rates, cheaper vegetables and softer oil prices partly offset these upward pressures.

Neri cautioned that inflation risks are tilted upward in the coming months, with rice supply pressures and base effects expected to push consumer prices higher in the early part of 2026.

‘Nonetheless, we still project inflation to stay at the two percent level through December, but could climb above three percent in the first half of next year,’ Neri said, adding that an influx of cheap Chinese exports may temper price pressures.

The Philippine Statistics Authority is set to release the official inflation report on Oct. 7, just two days before the BSP’s policy meeting, where markets are weighing whether the Monetary Board will slash policy rates further or keep the benchmark steady at five percent.

Economists agree that the upcoming inflation print will be a crucial input for the BSP’s next policy decision. A higher-than-expected number could bolster the case for a pause after the August rate cut, while a still-subdued print would leave room for the Monetary Board to ease further.

The central bank has already cut rates by 150 basis points since August 2024 to support growth amid benign inflation.

A magnitude 4.8 earthquake shook coastal Currimao, Ilocos Norte, at 9:45 a.m. on Sunday, October 5.

The Philippine Institute of Volcanology and Seismology reported that the epicenter of the tremor was located in Currimao, Ilocos Norte, at coordinates 18.24°North, 119.93°East 69 kilometers North 70° West of Currimao, Ilocos Norte. It has a depth of 17 kilometers.

The quake was tectonic in origin, and Instrumental Intensity I was recorded in San Nicolas and the City of Laoag in Ilocos Norte, as well as Sinait in Ilocos Sur.

These intensities indicate very weak shaking, typically felt only by a few people under favorable conditions.

Despite the relatively moderate magnitude, residents of Ilocos Norte took to social media, using hashtags like #iFelt_IlocosNorteEarthquake, to report mild swaying and ground vibrations.

Many mentioned that the shaking lasted only a few seconds and did not cause panic.

According to Currimao town mayor Edward Quilala, the Municipal Disaster Risk Reduction and Management Office immediately conducted roving and monitoring operations, particularly in coastal areas, to ensure the safety of residents and assess any potential damage.

Phivolcs said no aftershocks or damage are expected from the quake.

As of this report, there are no confirmed reports of damage to infrastructure or injuries.

The floods that swept through dozens of barangays in two provinces of the Bangsamoro region and its Special Geographic Area last month have subsided, but the regional government’s social services ministry continues to provide food rations to evacuees.

Local officials from various towns in Maguindanao del Sur and Maguindanao del Norte told reporters on Sunday, October 5, that personnel from the Ministry of Social Services and Development – Bangsamoro Autonomous Region in Muslim Mindanao continued providing food supplies to their displaced constituents until last Friday.

The MSSD-BARMM’s relief operations last week also covered parts of the SGA, which has eight newly created towns under the Bangsamoro government, but are in Cotabato province in Administrative Region 12.

Reports from local government units and the provincial offices of MSSD-BARMM in Maguindanao del Sur and Maguindanao del Norte indicate that the ministry facilitated the delivery of 10,950 food packs last week to Moro families affected by last month’s floods.

MSSD-BARMM field workers also distributed 3,204 hygiene, water, sleeping, and infant kits to villagers in the two provinces and the SGA last week.

Local executives in the eight newly created towns in the SGA separately told reporters on Sunday that they are grateful to officials of the MSSD-BARMM and the chief minister of the Bangsamoro region, Abdulrauf Macacua, for embarking on extensive relief works for barangays under their local government units that got inundated with floodwaters spawned by heavy rains in the mountain ranges around.

The 29 towns in Maguindanao del Sur and Maguindanao del Norte and in the SGA that got flooded last month, are near Central Mindanao’s 220,000-hectare Ligawasan Delta, a catch basin for more than a dozen rivers that spring from mountain ranges in highland areas in provinces nearby.

The Department of Trade and Industry (DTI) is set to study the imposition of a definitive safeguard measure on cement imports following the recommendation of the Tariff Commission (TC).

‘DTI will review the recommendation of the TC,’ Trade Secretary Cristina Roque told The STAR.

The DTI will be making the final decision on whether a definitive safeguard measure would be imposed on cement imports.

In its final report on the formal probe on safeguard measures on cement imports, the TC recommended the imposition of a safeguard duty amounting to P349 per metric ton or P14 for a 40-kilogram bag of imported Portland cement Type 1 and blended cement for a period of three years.

The TC made the recommendation after finding a causal link between the serious injury to the local cement industry and increased imports of cement products.

The recommended safeguard duty is the difference between the weighted average importers’ price of imported cement and the weighted average factory gate price of local cement for 2024.

‘Since it addresses the extent of price undercutting by cement imports based on the latest available data, the commission deems that this level of safeguard duty is sufficient to alleviate the serious injury to the domestic industry and facilitate its adjustment to the adverse effects of increasing cement imports,’ the TC said.

The TC said the definitive safeguard duty would not apply to imports from developing countries with de minimis import volumes such as Indonesia, Iran, Pakistan, Singapore, Taiwan and Thailand.

Back in February, the DTI imposed a provisional safeguard duty of P400 per metric ton or P16 for a 40-kilogram bag of imported cement after it found a link between increased cement imports and injury to the domestic industry.

Under the Safeguard Measures Act, the government may put in place safeguard measures to protect domestic industries from increased imports that cause or threaten to cause serious injury.

Cement Manufacturers Association of the Philippines Inc. executive director Rey Baja earlier said that the industry needs the safeguard measure for local cement manufacturing to remain viable and to protect local jobs.

Cement manufacturing contributes at least one percent to the country’s gross domestic product. It also provides around 130,000 direct and indirect jobs.