Category: Philippine Star

The holidays in the Philippines are more than just a season of joy – they are the ultimate test of resilience for businesses, especially for micro, small and medium enterprises (MSMEs). Every December, the surge in demand brings opportunity but also intense pressure: how do you keep customers happy when expectations are at their highest?

Holiday success for sellers should not only be about hitting sales numbers but also building loyalty that lasts long after the season ends.

The service recovery advantage

No seller wants things to go wrong, but the reality is that they often do during peak season. What sets resilient sellers apart is how they respond. Behavioral research describes this as the service recovery paradox: when problems are resolved exceptionally well, customers become even more satisfied than if everything had gone perfectly.

For sellers, this means treating service recovery as a growth strategy, not just damage control:

Proactive communication. Use templated chat updates or automated messages to handle inquiries. Our data shows that sellers who respond to buyer inquiries on the same day are far more likely to attract first-time buyers than those who take longer to respond.

Quick resolutions. Have ready SOPs for late dispatches, stockouts or damaged items. Don’t wait for complaints or escalation. A swift refund or replacement can turn a potential one-star review into repeat business.

Personalized touches. A simple apology note or a voucher for the next purchase signals genuine care and Filipino shoppers appreciate sellers who show malasakit.

Handled well, mistakes become opportunities to strengthen trust and stand out from competitors.

From rush to resilience

Sellers do not have to scramble all the time preparing for the holidays if they learn to anticipate. Successful sellers practice discipline on two fronts:

Operational discipline. Track your on-time delivery rate weekly, not monthly. Identify which SKUs or couriers are most prone to delays and fix those gaps early. Research consistently shows that dependable delivery is the top driver of repeat purchases in e-commerce. Data shows that sellers who consistently ship out their orders faster are less likely to experience buyer-initiated cancellations. Reliability compounds into loyalty.

Real-time insights. Using analytics to spot trends and plan stock prevents costly stockouts and lost opportunities. Sellers who stock their shops accordingly and minimize cancellations are more likely to retain customers and prevent them from switching to competitors.

The broader industry shift reflects this: e-commerce has become a lifeline for MSMEs, enabling market expansion and direct consumer engagement. Platforms like Shopee provide the campaign tools, customizable storefronts and reliable fulfillment that allow sellers to spend less time firefighting and more time scaling.

Shaping loyalty through micro-moments

Filipino buyers now measure value by the overall experience, not just the price tag. That experience is shaped by micro-moments in the customer journey.

Discovery: Buyers find products through search and categories, amplified by AI-powered listings, livestream selling and affiliate recommendations that help sellers connect faster with the right audience.

Evaluation: Buyers judge credibility through ratings and reviews, AR virtual try-ons and detailed product videos, creating a richer shopping experience.

Transaction: Buyers expect a seamless checkout, supported by multiple secure payment options, zero percent installments and Buy Now, Pay Later. Post-purchase communication is also imperative through a responsive chat and real-time order updates.

Advocacy: Buyers share their experiences after purchase, reinforced by smooth delivery, unboxing and thoughtful follow-up that turn satisfied shoppers into brand advocates.

Two moments matter most: the best touchpoint and the final one – the peak-end rule. Sellers who create a standout interaction, such as a personalized message or small freebie and close with a frictionless delivery and unboxing often win loyalty that outlasts the season.

From knowledge to growth

The strongest sellers pair technology with continuous learning. Shopee University is designed to equip sellers with the practical skills they need to thrive – from shop setup and campaign participation to analytics and marketing. Sellers who complete at least three structured training modules often see a lift in their order performance, proving that knowledge directly fuels growth.

This learning is also reinforced through the Tatak Pinoy MSME Roadshow, which extends training nationwide, even to non-Shopee sellers. By bringing learning opportunities across the country, these initiatives help MSMEs strengthen their operational skills, preparing them not only for peak season but also for long-term competitiveness.

Competing on experience, not just price

At the end of the day, Filipino shoppers know what they want: reliable delivery, transparent pricing, hassle-free returns and genuine service. Sellers who prioritize these experiences don’t just win during Christmas – they build businesses that grow sustainably year-round.

With the right preparation, service discipline and commitment to learning, the holiday rush can be more than a seasonal peak. It can be the foundation for resilience, loyalty and long-term success in the digital economy.

Security Bank Corp. has opened a new branch in Bacoor, Cavite, marking another step in its effort to extend its ‘BetterBanking’ experience to more Filipinos outside Metro Manila.

The newly inaugurated site is the bank’s 362nd branch nationwide and its 11th in Cavite, one of Southern Luzon’s most rapidly developing urban centers.

Located in a high-traffic commercial area, the Bacoor branch provides convenient access to a full suite of financial services for both individuals and businesses.

Security Bank said the expansion supports the city’s growing community of entrepreneurs, professionals and families amid Bacoor’s continued transformation into a vibrant hub for commerce and residential growth.

‘We’ve reimagined the traditional branch experience to provide a seamless blend of personal and digital interactions,’ said Leslie Cham, executive vice president and head of Security Bank’s Branch Banking Group.

‘From welcoming, low counters that encourage conversations to integrated digital tools that make transactions faster and more secure – every detail reflects our commitment to putting customers first,’ Cham said.

The branch design reflects Security Bank’s push to combine human connection with digital efficiency, offering clients the flexibility to manage their finances in person or online.

Last week, the bank announced that it opened its 361st branch in Angeles City, Pampanga. This followed the opening of the Naic and Antipolo branches in September.

It took a village for Barangay Ginebra to tally its first win in the PBA Season 50 Philippine Cup, as the Gin Kings blasted the TNT Tropang 5G, 92-77, Wednesday at the Smart Araneta Coliseum.

Six Ginebra players finished in double digits, led by Japeth Aguilar with 17 points and 10 rebounds. RJ Abarrientos chipped in 14 markers off the bench, while Troy Rosario had 13 points and 13 rebounds.

Scottie Thompson, Stephen Holt and Norbert Torres each had 10 points for the winning squad.

TNT actually started the game off with a three-point lead, but it did not take long for Ginebra to find its rhythm and leave the Tropang 5G in the rear-view mirror.

After an and-one play by RR Pogoy to make it a three-point game, 10-13, Ginebra dropped a massive 20-4 run capped by a layup by Norbert Torres to break the game wide open.

That hot start was enough for the Gin Kings to breeze through to the finish line, as TNT could not close the gap to within 10 points.

Simon Enciso tried to shoot TNT back into the game, sinking five 3-pointers in the fourth quarter.

But Ginebra’s lead was just too big to overcome, as the Tropang 5G had an answer for every run.

Jeremiah Gray produced eight points for the Gin Kings while Sonny Estil had seven.

Enciso top-scored for TNT with 17 points in 17 minutes. Kevin Ferrer chipped in 11 points, as none of the Tropang 5G’s starters finished in double digits.

Ginebra will be back in action against the Meralco Bolts on Friday at the same venue, while TNT will take on the Converge FiberXers on Saturday at the Chavit Coliseum in Ilocos.

The Department of Justice (DOJ) has signed the Immigration Lookout Bulletin Order (ILBO) requested by the Independent Commission on Infrastructure (ICI) against 19 individuals on Wednesday, October 15.

Bureau of Immigration spokesperson Dana Sandoval confirmed with Philstar.com that the department received the ILBO issued by the DOJ on the new individuals tagged by the ICI.

‘Their names have been included in our centralized database, and their travels will be monitored and reported to the DOJ,’ Sandoval told Philstar.com in a message.

This means that their names have been circulated to immigration authorities to monitor the individuals from leaving the country, typically those who are subjects of ongoing investigations or legal cases.

It differs from a hold departure order, which is a court-issued directive preventing an individual from leaving the country.

The ICI earlier requested an ILBO against 19 individuals which including former and current lawmakers and engineers.

Three of the people included in the list had already been issued an ILBO from the initial list in the DOJ’s lookout bulletin issued on October 8.

Behind a local parish lies a behind-the-scenes drama among its leading priests. These clashes could determine its fate: whether forgiveness will bloom or failure will bring the whole place down. Whatever the outcome, it’s all part of being human – something Teatro de San Pedro Calungsod (TSPC) masterfully portrays through its true-to-life stories on stage as a form of evangelization.

‘Tulo Ka Dagway sa Pari’ centers on the conflict between the young Fadz Elmert and the older Father Pio, while Padre Iko attempts to remain optimistic as he reaches his twilight years despite growing tensions inside the parish.

His oldest play to date, playwright and TSPC founder Msgr. Agustin Ancajas first wrote the play in 1993 as a seminary thesis based on the Enneagram of Personality – a concept that describes human personality through nine interconnected types defined by different motivations and behavior patterns.

After making revisions that included cutting nine leading characters into three, Ancajas directed the play in 2000 at the University of San Carlos-South Campus’ Rudolf Rahmann Cultural Center, with Fr. Eduardo ‘Daddy’ Villaluna as Father Pio, Fr. Isaias ‘Bobbitt’ Gerali as Fadz Elmer, and Fr. Murphy Sarsonas as Padre Iko.

The show had its restaging at the Marcelo Fernan Cebu Press Center last month, with Cornell Anthony Tudio playing the role of Fadz, Rennedy Cabaluna as Father Pio, and Florencio Villacorta as Padre Iko. They reprised their roles from the 2023 production at the same venue, which served as its 30th anniversary presentation.

Also joining them are supporting cast members Mary Ann Dumaran as the parish cook Conching, Eldryn Padigos as parish worker Pedring, Genelyn Aves as benefactress Lourdes, Alexander Sebalda as Bishop Leo, and Elbert Ydeme as mechanic Bodie.

Their recent performance coincides with the Jubilee Year, which encourages followers to go through spiritual renewal and reconciliation – the underlying themes of the story.

‘The play is very internal that it reveals an insider story of what’s going on in the leadership of the church,’ Ancajas told The FREEMAN. ‘A lot of people who served for their church can relate because they are familiar with the misunderstandings and conflicts. But at the end of the day, it’s always God’s grace that leads to reconciliation and redemption for everybody.’

Through dialogue-heavy scenes and monologues, the conflict among the priests stems from their contrasting personalities and differing views on how to lead their parish, fueled by egos and generational gaps. As tensions rise, particularly between Fadz and Pio, it raises the question of whether the church can continue to serve without resentment, which in turn affects their ministry.

‘We are drawn to our own issues in life. But we never lose hope because in the end, it can be resolved through communication,’ Villacorta said. ‘It’s always God’s grace that helps us go through our situations, and we never lose hope despite our differences.’

‘In spite of those differences, there is diversity,’ added Cabaluna. ‘The love of God reveals each one of us, and at the end, we have love and forgiveness and mercy from God.’

In a review of the 2000 production for a magazine, Amor Hernando praised the play for its eloquent portrayal of complex characters and how their psyches impact their parish.

‘Neither a satire nor a morality play, this play plumbs the depths of the human psyche by presenting the struggles of three priests within the context of the Filipino church, which is still concededly traditional, not excepting Cebu,’ the critic wrote.

‘It demonstrates how the emotional and psychological struggles of the three priests could affect their ministry at definite phases in their lives. The existential vulnerability constricts the quality of service, the givenness, the agility to become the pastors people expect them to be.’

While the play may have been written decades ago, its story remains timely – especially for its target audience, who may be all too familiar with such struggles.

‘This is a play that shows the human side of priests. What’s important is that the grace of God continues to purify the priests and their service, love for the church, and nurture their relationship with the people in their parishes,’ Ancajas said. ‘Even younger people who attended said that they could relate to a story like this. What’s important at the end is that there is openness for forgiveness and reconciliation.’

President Ferdinand Marcos Jr. on Wednesday, October 15, announced that the bicameral conference committee for the 2026 national budget deliberation will be livestreamed.

The bicameral conference committee is widely suspected of being a source of corruption after last-minute changes to the national budget were allegedly made during the closed-door meeting.

Lawmakers have been accused of inflating parts of the budget for kickbacks.

In an interview with the media at Malacañang Palace, Marcos said it has changed now.

‘I have an agreement with the Senate President and Speaker na ganun ang gagawin natin. We will livestream the entire process so that if there are questionable, shall we say insertions or additions or all that, it will also be clear who made those changes or who proposed those changes,’ Marcos said.

The president said there is also no longer a small committee making large changes.

Marcos earlier threatened Congress not to make gross changes to the National Expenditure Program, which has repeatedly happened over the past three budget years. During his State of the Nation Address, Marcos threatened to veto the budget that Congress would pass if they changed it.

Now, Marcos said there appeared to be no longer a need to act on this threat after seeing the recently passed budget of the House of Representatives.

‘I do not think, from the last time that I saw the last version of the budget, I did not see anything that broke away from the plans of the national government,’ Marcos said in a mix of English and Filipino.

However, Marcos said that he is not closing the door on a veto, since the process is still ongoing.

The admin is currently experiencing a highly controversial corruption scandal. Several high-profile leaders are suspected of inserting budget into flood control projects for later kickbacks.

While no explicit reason has been given, the corruption scandal has already seen the replacement of both the House Speaker and the Senate President.

Billions of pesos are suspected to have been stolen by officials and contractors in kickback schemes. Despite the high-profile nature of these cases, formal charges have yet to be filed for any government official.

The public’s trust in flood control investigations may be mixed, but on one thing Filipinos are nearly united: at least nine in 10 believe there was collusion among government officials, lawmakers, and contractors in pilfering funds for flood control projects.

The finding comes from a Pulse Asia survey conducted from September 27 to 30, at the height of congressional probes into alleged ‘ghost’ and substandard flood control projects that have rocked the Department of Public Works and Highways (DPWH) and prompted changes in the leadership of both the department and Congress itself.

According to the survey released Wednesday, October 15, 90% of respondents agreed that government officials, legislators, and private contractors conspired in the misuse of public funds for flood control programs, with some 60% saying they ‘strongly’ agreed. Only 4% disagreed, while 6% were undecided.

This perception cuts across all regions and income levels, according to Pulse Asia’s survey. In Metro Manila, 71% strongly agreed there was collusion, as did 65% in the rest of Luzon and 60% in Mindanao. Even in the Visayas, where strong agreement was lowest at 48%, another 40% said they “somewhat agreed.”

Pulse Asia conducted the poll just as the Anti-Money Laundering Council froze 1,563 bank accounts, 154 vehicles, and 30 properties tied to the scandal, and as then-Rep. Elizaldy Co (Ako Bicol) resigned after being accused of inserting nearly P14 billion in the 2025 budget and collecting billions more in kickbacks.

A country resigned to corruption

Most Filipinos, according to the survey, also believe corruption is extremely widespread in government.

A whopping 97% of Filipinos consider corruption in government to be widespread, with 78 percent saying it is “very” widespread. Only 0.4% said corruption is ‘not widespread.’

For 85%, the level of corruption in government has worsened over the past year, while only 3% said it had improved.

Nearly six in 10 Filipinos think corruption has become a normal part of Philippine politics, according to the survey. This is a view shared by majorities in every region except Mindanao, where only 39% agreed and nearly half (47%) disagreed.

When asked what actions they consider corrupt, three in four Filipinos identified accepting or giving bribes. Some 67% also said misuse of public funds or company resources counts as corruption, while 64% included kickbacks for contracts or services.

Nearly half – 49% – pointed to insider trading or financial fraud as corruption. Smaller but still substantial shares flagged tax evasion (41%), nepotism in hiring (38%), and undisclosed conflicts of interest (27%).

A crisis of trust

If Filipinos are certain collusion has happened, they’re far less certain that current government institutions can do anything about it.

The Department of Public Works and Highways, the agency at the center of the scandal, is trusted by just 7% of Filipinos to address corruption in flood control projects. Some 81% distrust it, including 58% who said they have “very small or no trust” at all.

President Ferdinand Marcos Jr. fares better but hardly inspires confidence, as the survey shows nearly half of all Filipinos do not trust him to address the problem (45%). Thirty-two percent trust him, and 23% can’t say.

Distrust is highest in the Visayas (50%) and among class E respondents (48%), the lowest socio-economic group that answered the survey.

There is also little trust in both chambers of Congress, which have each pursued their own probes into the anomalous flood control works. The Senate has 37% trust and 27% distrust, with 36% undecided. The House of Representatives fares worse: 36% distrust it, 25% trust it, and 40% can’t decide.

The Office of the Ombudsman, the constitutional body tasked with prosecuting graft, registered 39% trust and just 17% distrust. But 43% of Filipinos can’t say if they trust it or not.

The Independent Commission on Infrastructure (ICI), created by President Marcos in September to investigate irregularities in infrastructure projects, is an unknown entity to most. Some 56% can’t say whether they trust it, while 23% do trust it and 21% don’t.

Only two institutions cleared 50% trust: media (51%) and civil society organizations (50%).

Split opinions on investigations

Filipinos were divided on what congressional inquiries were really for. A majority, 54%, said the Senate and House investigations into flood control projects were genuine attempts to expose corruption and hold those responsible accountable. But 19% saw them merely as responses to public outrage, 13% as tools to pressure political rivals or protect allies, and another 13% as distractions from other issues.

When asked about the specific congressional probes, 45% said the Senate Blue Ribbon Committee’s investigation is likely to uncover the truth and hold those involved accountable. Only 10% dismissed it as ‘political theater.’

Views on the House Infrastructure Committee were more skeptical: just 38% believed it would lead to accountability, while one in five said such inquiries ‘rarely lead to meaningful results.’

Seven in 10 Filipinos (71%) said they believe officials found guilty of irregularities will eventually be punished. Interestingly, there is higher confidence on this in Mindanao (78%) than in Metro Manila (66%).

Even as faith in institutions wavers, nearly half of respondents (46%) said rallies and protests remain an effective way to ensure that those involved in corruption are held accountable. That belief was strongest in Mindanao (56%) and among poorer Filipinos in Class E (61%).

But 31% said protests don’t work, while 23% couldn’t say.

The survey was conducted days after thousands joined the ‘Trillion Peso March’ against corruption on September 21.

The survey was based on face-to-face interviews with 1,200 adults nationwide with a ±2.8% margin of error.

When World War II ended, the country lay in ruins, homes flattened, bridges blown apart, and its economy shattered. The United States pledged to help its former colony rise again. Which was just logical, because we were drawn into the war because of U.S. presence here. The U.S. promised massive reconstruction aid, but delays, corruption, and favoritism left many Filipinos uncompensated. In return, the Bell Trade Act tied the nation’s economy to Washington by granting Parity Rights to American investors –an arrangement denounced by nationalists as economic servitude yet accepted by President Manuel Roxas out of financial necessity. Meanwhile, the U.S. strengthened its military foothold through the 1947 Military Assistance Agreement and base leases at Clark and Subic, ensuring its presence for decades. These moves underscored that U.S. aid was driven by strategic, not charitable, motives, positioning the Philippines as America’s first line of defense in Asia.

The U.S. pledged rural reform, anti-corruption, and institution-building, but in reality, backed local elites who maintained the landlord system, causing agrarian reform to fail and rural poverty to persist. Development projects became tools of political patronage, tolerated by Washington as long as Manila remained anti-communist. Filipino veterans, who had fought alongside Americans, were denied equal benefits under the 1946 Rescission Act, receiving only partial justice decades later. In the end, America rebuilt and armed the Philippines –but on its own terms, leaving the nation economically and militarily dependent for generations.

Elpidio Quirino battled Huk insurgency, corruption, and inflation, relying on U.S. aid tied to anti-corruption oversight. Ramon Magsaysay restored public trust through rural development and counterinsurgency, hailed as a U.S. Cold War success, but his death ended hopes for deeper land reform. Carlos P. Garcia’s ‘Filipino First’ policy sought economic independence yet faltered under business resistance, U.S. pressure, and persistent corruption. Diosdado Macapagal implemented Decontrol and agrarian reform, earning IMF praise but facing domestic backlash over inflation. Ferdinand Marcos, initially promising reform, turned authoritarian –concentrating power, suppressing dissent, and amassing huge foreign debts. Though infrastructure expanded, the 1980s debt crisis and corruption left the economy in ruins.

Corazon Aquino grappled with seven coup attempts, widespread poverty, and natural disasters. The 1991 Senate vote rejecting the renewal of U.S. bases ended U.S. military presence, yet economic gains remained limited and agrarian reform under CARP was divisive. Fidel V. Ramos revived investor confidence through liberalization, privatization, and peace with the MNLF, but was later derailed by the Asian Financial Crisis. Joseph Estrada promised to fight poverty but fell to corruption and impeachment, while his ‘all-out war’ against the MILF displaced thousands and reignited Mindanao conflict. Gloria Macapagal Arroyo faced fiscal deficits, insurgencies, and legitimacy crises, relying on the U.S. post-9/11 alliance for security and passing the Expanded VAT law to stabilize finances amid constant scandals.

Benigno Aquino III restored investor confidence and scoring a historic legal victory over China in 2016, but his leadership was challenged by major crises like Typhoon Haiyan and the Mamasapano clash. His successor, Rodrigo Duterte, reversed course with the drug war, a pivot toward China, and populist defiance of the West. Massive infrastructure spending under ‘Build, Build, Build’ drove growth but exposed deep governance and inequality issues, especially during the Marawi siege and the COVID-19 pandemic. Now, Ferdinand Marcos Jr. faces the difficult task of balancing U.S.-China tensions in the South China Sea, addressing widespread corruption allegations, and defining his presidency amid renewed global scrutiny of Philippine sovereignty.

Since World War II, the Philippines has remained formally independent but constantly negotiating its autonomy. The U.S. fulfilled its promise to rebuild, yet did so in ways that kept the country economically and militarily dependent. From Roxas to Marcos Jr., every administration has faced the same enduring challenges –strengthening institutions, fighting corruption, reducing poverty, balancing foreign alliances, and upholding democracy. Leaders have come and gone, but the nation’s ongoing struggle for true independence, integrity, and prosperity continues.

The Philippine Embassy in Beijing will open applications for electronic visas (eVisas) to Chinese nationals starting in November, in a move it hopes will encourage more visits from one of the country’s largest sources of tourists.

In a statement on Wednesday, October 15, Philippine Ambassador to China Jaime FlorCruz said the online visa system will initially cover travelers from mainland China and its Special Administrative Regions applying for short-term stays of up to 14 days for business or tourism.

This will “[make] the visa application process more convenient for those making a temporary visit to the Philippines,’ FlorCruz said.

Applications may be filed online and are valid for entry through the Ninoy Aquino International Airport in Manila or the Mactan-Cebu International Airport.

The eVisa program will be implemented by the Philippine Embassy in Beijing and the consulates in Chongqing, Guangzhou, Hong Kong, Macau, Shanghai and Xiamen.

The embassy will announce detailed procedures and website information soon, following the signing of a memorandum of agreement on October 15 between FlorCruz and Kishen Singh, VFS Global’s CEO for Mainland China, Hong Kong, and Mongolia.

The rollout is being conducted in partnership with the Department of Information and Communications Technology (DICT) and VFS Global.

Who are eligible? The embassy said Chinese nationals who intend to stay in the Philippines for more than 14 days, as well as other eligible foreign residents in China, may continue to apply for conventional visas through newly opened Visa Application Centers in Beijing, Chongqing, Fuzhou, Guangzhou, Hong Kong and Shanghai.

‘The implementation of the eVisa comes at an opportune time,’ FlorCruz said. ‘Under the leadership of Secretary Ma. Theresa Lazaro, the Department of Foreign Affairs met with the Chinese Ministry of Foreign Affairs in July 2025 for the Joint Consular Consultations, which discussed the importance of people-to-people exchange.”

Diplomatic tool. FlorCruz said the eVisa launch coincides with the 50th anniversary of diplomatic relations between the Philippines and China, noting that people-to-people exchange remains central to bilateral cooperation.

In 2023, the DFA suspended the operations of its e-visa system in China, after three months of beta testing.

Bansot is a Tagalog word that means stunted, often used to describe a person, animal or plant whose growth or development has been arrested. It can refer to being physically short, but it can also imply mental or psychological growth has stopped.

Can a country be considered economically bansot? A country we are familiar with is probably a good example. It stopped growing as fast as it should have due to wrong policies and overwhelming corruption. Its neighbors overtook it and it doesn’t look like it is doing much to reverse the trend.

Before this country can stop being the regional bansot, it must save its next generations from the curse of being bansot. It must pour the resources needed to provide mothers the prenatal care they need and thereafter, to make sure their children get the nutrition required for normal physical growth and mental development.

The Foundation for Economic Freedom (FEF) held a lecture last week with the theme: ‘Bata, bayan, bukas: Reducing childhood malnutrition and stunting through economic freedom.’ The lecture highlighted the urgent need to treat nutrition not merely as a health and nutrition issue, but as an agricultural and economic policy challenge.

It is an agricultural and economic policy issue because our policies have kept food expensive, a reason why there’s a lot of malnutrition.

Low-income families spend about 60 percent of their meager income on food, half of that on rice because rice is cheap and filling. Households that can’t afford more diverse foods often have diets low in protein, vitamins, minerals.

The lecture opened with FEF’s award-winning short documentary on stunting, malnutrition and agricultural policy, which recently won the Atlas Network’s Public Policy Impact Award in New York.

The film underscored how child undernutrition and agricultural inefficiencies are intertwined challenges requiring urgent national action. ‘Malnutrition is not only a public health issue – it is an economic freedom issue,’ said FEF president Calixto Chikiamco in his opening remarks.

Child malnutrition is every Filipino’s concern. There is substantial scientific evidence showing that inadequate nutrition in early childhood (especially before age five) can compromise both physical and intellectual (cognitive) development.

Children who are malnourished (or stunted – meaning chronic undernutrition leading to low height-for-age) often score lower on measures of cognition (IQ, attention, memory, language skills).

The problem is huge. One in four Filipino children under five is stunted. That irreversibly limits physical growth, brain development and lifetime earning potential. That’s a tragedy.

DepEd Secretary Sonny Angara told me that he wants to be involved in child feeding programs now under DSWD. Sec. Sonny said that unless the feeding programs are done right, by the time the children are in elementary school, it becomes more difficult for the school system to make them learn the basics of math, reading and science.

The World Bank declared that the Philippines’ learning poverty rate is at an alarming 91 percent. This means nine out of ten 10-year-olds cannot read and understand a simple text.

The World Bank warned that ‘If this situation is not addressed, the country risks having a less skilled workforce in the future.’ And that’s putting it kindly.

The FEF estimated that undernutrition costs the Philippines $8.5 billion (P496 billion) annually – around two to three percent of GDP – through lost productivity, higher health care costs and diminished human capital.

In her presentation, Atty. Benedicta ‘Dick’ Du-Baladad, a Fellow of the FEF, reframed nutrition as a strategic business investment.

Numerous Filipino children, she said, are ‘born with promise’ but whose potential is ‘diminished before their second birthday. [This] is a lifelong economic penalty,’ she said.

According to Du-Baladad, uncurbed malnutrition ‘directly undermines economic freedom’ by limiting individual capacity, fostering people’s dependency on social safety nets and distorting the labor market.

Du-Baladad urged the private sector to integrate nutrition into business strategies, workforce development and food system reforms, warning that failure to act risks reversing hard-won gains in malnutrition reduction.

Here’s a thought: for a start, can the highly profitable manufacturers of cup noodles infuse their products with nutrients? Can we have a rice variety with vitamins?

Indeed, the difficulty that our business sector is having in hiring qualified staff is traceable to our failure to provide proper nutrition to our children. Stunted development as it affects the brain means the current generation of potential workers will be difficult to educate, train and make economically productive.

We are missing the train again. We are not likely to benefit from a demographic dividend which we should be enjoying because we have a large working-age population. Malnutrition and stunting among children under five significantly undercut the potential upside.

This is such a pity because more people in the productive age range (roughly15-64) means more potential workers, which can support faster economic growth, especially if the ratio of dependents (young and old) is lower.

A larger labor pool can mean more specialization, greater innovation, higher aggregate output and more capacity to invest in infrastructure, education, health etc.

If education, health, skills training and jobs are available, the large working population can boost consumption, tax revenues and economic dynamism.

Instead of a demographic dividend, we will have the burden of a large unemployable working age population requiring hand-outs or ayuda from the government. This may be a source of political strength for our political dynasties, but bad for the nation.

Dr. Mildred Guirindola of the DOST-Food and Nutrition Research Institute (DOST-FNRI) in her lecture before the FEF said ‘Malnutrition, particularly stunting, is not only a health issue but also a barrier to human capital, productivity and national progress.’

Guirindola pointed out that stunted children are more likely to drop out of school, earn less as adults and face lifelong health risks, with their economic productivity as adults clipped by more than 10 percent in their lifetime.

‘Reducing stunting is not just saving lives. It is securing our nation’s future,’ Guirindola added.