Category: Philippines Daily Inquirer

The Department of Finance (DOF) and Bangko Sentral ng Pilipinas (BSP) welcomed Moody’s Ratings’ decision to affirm the Philippines’ investment-grade ‘Baa2’ rating with a stable outlook, saying the assessment reflects the country’s steady credit standing despite economic headwinds.

In a statement, Finance Secretary Frederick Go said the affirmation shows the resilience of the Philippine economy amid the global energy shock and slowdown in public infrastructure spending.

‘We welcome the stable outlook credit-rating affirmation, even as the world deals with real headwinds. Moody’s assessment confirms our strong macroeconomic fundamentals, and that the reforms we’ve put in place are working.’ Go said.

Moody’s is now the only one of the three major credit rating agencies to maintain a stable outlook on the Philippines.

In April, Fitch Ratings revised its outlook to negative from stable, while SandP Global Ratings lowered its outlook to stable from positive.

Separately, the BSP said the latest development recognized the country’s ability to withstand headwinds.

‘On the part of the BSP, we will continue working to bring inflation back close to target, safeguard the soundness of the country’s banking system, promote a safe and efficient payments and settlements system, and prudently manage the country’s international reserves,’ the central bank said.

‘These efforts help preserve macroeconomic and financial stability, which supports sustainable and inclusive growth,’ it added.

Moody’s affirmed the Philippines’ Baa2 rating on Monday, leaving it two notches below the coveted A-level rating. The Philippines first attained a Baa2 rating in December 2014.

Despite affirming the rating, Moody’s has still become more cautious about the Philippines’ near-term economic and fiscal outlook.

The credit rater cut its 2026 growth forecast for the Philippines to 3.6 percent from its previous 5.5-percent projection, while trimming its 2027 forecast to 5.3 percent from 5.6 percent. Both forecasts, however, remain within the Marcos administration’s targets of 3.5 to 4.5 percent for 2026 and 5 to 6 percent for 2027.

Moody’s also raised its forecast for the country’s current account deficit in 2026 to around 4 percent of GDP from 3.4 percent previously.

Its projection for the general government debt burden was likewise raised to around 58 percent of GDP in 2026 from 54 percent previously, while interest payments are now expected to absorb more than 14 percent of government revenue over the next two to three years, up from its previous estimate of 12.3 percent.

Still, Moody’s kept its general government deficit forecast unchanged at around 3.9 percent of GDP for 2026.

‘The stable outlook reflects our expectation that the government’s fiscal consolidation path and debt stabilization remain broadly on track despite the current cyclical slowdown. This view is supported by the government’s track record of navigating successive external shocks while maintaining broadly prudent macroeconomic policies,’ Moody’s said.

These expectations are balanced against risks that weaker confidence, political developments ahead of the 2028 elections, or delays to planned revenue measures weigh on investment, growth and fiscal consolidation,’ it added

That is the question asked us often when it comes to personal finance. Whether it is a stock, real estate, cryptocurrency, mutual fund, unit investment trust fund (UITF), single pay variable unit-linked insurance, gold or even Pag-ibig MP2, many Filipinos are constantly searching for the investment that delivers the highest return.

Many times, however, this is the road to financial perdition.

Behavioral economics, a field that studies how emotions and psychological biases affect financial decisions, teaches us that people are not always rational investors. We are influenced by stories, headlines, social media and what everyone around us is doing.

One of the most dangerous behavioral traps is recency bias or the tendency to place too much importance on recent events while ignoring long-term realities. Investors assume that what performed well recently will continue performing well in the future. This explains why instead of buying low and selling high, uninformed investors buy high and sell low, thus being blinded by the fact that when prices are hot, such prices are most likely close to their peak levels.

Behavioral economists also describe another phenomenon known as herd mentality, which can also be loosely called heard mentality. Instead of making independent decisions, people simply follow the crowd. If relatives, friends, office mates, influencers or online groups are making money from a particular investment, many assume it must be a good idea.

These tendencies are not unique to Filipinos. They are present worldwide.

Research in behavioral finance consistently shows that investors who frequently jump from one hot investment to another often earn lower returns. Consider what happened during various investment booms.

During the global technology stock boom, many investors bought internet-related stocks only after hearing success stories from others. During property booms, buyers convinced themselves that real estate prices could only go up. More recently, countless investors entered cryptocurrencies after reading about overnight millionaires. But in many cases, early participants profited handsomely while latecomers suffered losses.

That is why sellers of financial products often include in their marketing collaterals the warning that past performance is not a guarantee of future return. A basketball player who scored 40 points last night is not guaranteed to score 40 points tomorrow. Similarly, a mutual fund, stock or cryptocurrency that gained 50 percent last year is not guaranteed to gain another 50 percent this year.

Even the ranking of best performing Philippine-equity invested mutual funds and UITFs that the Personal Finance Advisers Philippines Corporation tracks changes year to year.

Markets move in cycles. Economic conditions change. Interest rates rise and fall. Government policies evolve. What worked yesterday may not work tomorrow.

Another behavioral bias called overconfidence makes matters worse. After a few successful investments, people begin believing they can consistently identify the next winner. They become convinced they possess special insight. As a result, they concentrate their money in a handful of investments instead of diversifying.

Yet research shows that overconfidence is one of the most common behavioral biases among investors and often contributes to poor decision-making. Many times, the overconfidence morphs into greed.

As a greater number of Filipinos begin investing, it becomes even more important to avoid behavioral mistakes that have hurt investors in other countries for decades.

Unfortunately, successful investing is usually boring. Most financially successful investors did not become wealthy by constantly chasing the year’s best-performing asset. Instead, they focused on proven principles: regular investing, diversification, patience, discipline and alignment with long-term goals.

The objective of investing is not to own the investment that generated the highest return last year but to achieve your financial goals. If your goal is retirement, your strategy should support retirement. If your goal is funding a child’s education, your investments should support that objective. If your goal is financial independence, your portfolio should be designed to get you there.

The better question is not ‘which earned the highest return?’ but ‘which gives me the highest probability of reaching my goals?’

So, the next time someone tells you about an investment that has doubled or tripled in value, resist the urge to immediately jump in. Pause. Ask whether the investment fits your goals, risk tolerance and financial plan. Because in investing, the people who win are rarely those who chase returns. They are the ones who stay focused on their destination. INQ

Responders rescued a pygmy sperm whale found stranded and struggling to stay afloat in Pagudpud, Ilocos Norte, stabilized it, and returned it to the open sea on Aug. 18.

The whale was found alive at around 10 a.m. at Sitio Namnama in Barangay Burayoc, according to a Tuesday report by the Bureau of Fisheries and Aquatic Resources (BFAR) in Ilocos.

Responders assessed the whale and carefully moved it to a suitable area for monitoring. They observed its breathing, buoyancy, behavior, and overall condition, and made efforts to stabilize it.

At 3 p.m., the whale showed signs of recovery, and it was able to swim back into open waters.

Responders and partner agencies then conducted 24-hour monitoring of the area. No subsequent stranding of the whale was reported in Ilocos Norte or nearby provinces during the monitoring period.

In caring for the whale, local fisherfolk and the Pagudpud local government collaborated with BFAR’s Provincial Fisheries Office-Ilocos Norte, the Provincial Government of Ilocos Norte, and the Philippine Marine Mammal Stranding Network

The Supreme Court has affirmed the Commission on Audit’s (COA) disapproval of more than P300,000 in flying risk pay for nine Civil Aviation Authority of the Philippines (Caap) officers and staff whose tasks were managerial or administrative in nature and not related to actual aircraft operations.

The high tribunal’s ruling upheld the COA’s issuance in 2021 of a notice of disallowance covering P323,580 in flying risk pay for the Caap officials and personnel, including its head at the time, Director General Ramon Gutierrez.

The Supreme Court cited Section 30 of Republic Act No. 776, or the Caap law, and said that the COA was correct in disallowing the ‘excessive and unlawful payment’ of the benefit.

No basis

‘The disallowance itself is proper, as the payments lacked statutory basis and were granted to individuals who were not legally entitled thereto,’ read part of the 22-page decision promulgated on Jan. 21 this year and released publicly only recently.

At the same time, the high court ordered the nine to return the amounts they received.

The case stemmed from a petition for certiorari filed by Caap employees against the various COA issuances in 2022 and 2023 that affirmed a 2013 notice of disallowance covering the payment.

The COA found that the amount identified as flying risk pay was tagged as ‘irregular expenditures.’ Among those who received the benefit was Gutierrez, who had also approved and certified the payment as valid.

Under the Caap law, licensed air staff and other authorized agency personnel whose job requires work-related flights are entitled to additional compensation equivalent to 50 percent of their base pay as long as they accumulate a total of at least four flying hours per month.

But the high tribunal stressed that the covered Caap officers and staff could not be classified as ‘airmen’ whose duties are ‘inherent in the operation of the aircraft while in flight’ under the Government Accounting and Auditing Manual.

Purely incidental

‘While it is true that their duties occasionally require travel, these are purely incidental to the discharge of their administrative responsibilities. Records show their travels consisted of attending international conferences and meetings, inspecting airports and facilities, verifying legal cases, and overseeing projects and ceremonies in various domestic and foreign locations,’ it noted.

It added they boarded the flights merely as passengers to reach their work-related destinations.

However, the Supreme Court absolved Gutierrez and other Caap officers of liability over the approval of the hazard pay as this was done ‘in good faith.’

The Energy Regulatory Commission (ERC) has extended the completion targets for two transmission projects worth P8.24 billion following delays due to issues with land takeover and bureaucratic red tape.

In separate decisions dated Aug. 24, the commission granted the National Grid Corp. of the Philippines’ wish to extend the timeline of the P6.34-billion Porac 230-kilovolt substation project and the P1.9-billion Amlan-Dumaguete 138-kilovolt transmission line project.

The Porac asset is meant to address the anticipated load growth in Pampanga. It was initially set for completion on or before Nov. 18, but the grid operator faced right-of-way woes coupled with regulatory approval delays. Its new deadline is June 30, 2027.

The Amlan-Dumaguete project in Negros Oriental was set for completion by September 2024. But it suffered delays due to issues in the local government and the lengthy process of securing permits and clearances. The ERC extended the deadline to the end of March 2027.

It added that ‘the timely and expeditious completion of the (projects) shall address the increasing demand and ensure the reliability and adequacy of power supply within the affected areas.’

Lawyer Kristine Ferrer serves as one of defense counsel of Vice President Sara Duterte as she faces the Senate impeachment court on allegations of misusing confidential funds, unexplained wealth, bribery and grave threats.

Ferrer, like several other members of the defense such as lead counsel Sheila Sison, is a partner lawyer of the Fortun, Narvasa and Salazar (FNS) Law Firm.

Since the trial began, Ferrer has so far led the defense’s cross-examination on two of the prosecution’s witnesses, particularly state auditor Xylene Mae del Campo and Office of the Vice President assistant chief-of-staff Lemuel Ortonio, as the court tackles Article I or Duterte’s alleged misuse of confidential funds..

She is so far most known in the context of the trial for taking on private prosecutor Lorna Kapunan, known as a giant in the field of law, in one of its proceedings.

According to the FNS website, Ferrer earned her degree in Bachelor in Accountancy at the Ateneo de Davao University and was admitted to the Bar in 2011.

In 2009, her team during her law school years emerged as champion in the First National Debate on International Humanitarian Law, where she was awarded Best Debater of the Tournament. She was also a finalist in the first season of the ANC’s CVC (Villaraza Cruz Marcelo and Angangco firm) Law Debates in 2008.

She is also certified negotiator, as she has obtained her Certification in Negotiation Mastery from Harvard Business School Online.

Ferrer now has around 15 years of legal practice as a Certified Public Accountant (CPA) Lawyer, first beginning her career as a tax lawyer at Sycip Gorres Velayo and Co., before joining the firm.

Her practice areas revolve mostly around arbitration corporate and commercial practice and corporate rehabilitation, litigation and dispute resolution, as well as taxation.

The FNS also said that the lawyer possesses ‘extensive experience’ in handling matters before the Bureau of Internal Revenue BIR) and the Court of Tax Appeals.

Listed as one of her notable achievements was leading the team that facilitated what was widely regarded as the largest tax compromise settlement in the country, the P25 billion tax compromise settlement between Mighty Corporation and the BIR.

The FNS also regards Ferrer as an ‘outstanding litigator who has successfully represented clients in civil, criminal, commercial, and intra-corporate disputes, including those regarded as high-profile cases.’

Apart from being a lawyer, Ferrer serves as a lecturer in Taxation Law and Special Proceedings at the Ateneo de Davao University College of Law.

Homegrown fast-food giant Jollibee Foods Corp. (JFC) is getting a taste of global recognition as its aggressive overseas push continues to pay off.

The Jollibee Group was named Global Growth Champion at the inaugural Globie Awards of the Global Restaurant Leadership Conference, beating 11 other brand nominees. It secured more than 74 percent of votes from the awards’ advisory panel.

The recognition comes as Jollibee grows well beyond its Philippine roots. The group now operates more than 10,700 stores and cafés across 33 countries, with a portfolio spanning 20 brands across owned, franchised and invested businesses.

That roster includes homegrown names Jollibee, Chowking, Greenwich, Red Ribbon and Mang Inasal, alongside overseas bets such as Smashburger and Tim Ho Wan. JFC also holds stakes in The Coffee Bean and Tea Leaf, Compose Coffee, Shabu All Day and Milksha, among others.

‘Growing across markets requires more than opening stores,’ said David Beal, Jollibee Group’s global chief marketing officer and head of digital marketing, citing the importance of locally relevant brands, operating teams and partners.

With 33 countries already on its menu, the Filipino fast-food giant clearly still has room for another serving of global growth.

Investments approved by the Philippine Economic Zone Authority (Peza) jumped more than fourfold in August to P64.57 billion, putting the agency closer to hitting its P300-billion full-year target with four months left in 2026.

According to Peza, its August approvals, spread across 22 new and expansion projects, marked a 334.13-percent increase from P14.87 billion in the same month in 2025.

This increase was driven primarily by nine big-ticket projects worth a combined P62.05 billion, or 96.1 percent of total monthly approvals.

‘These results are a clear vote of confidence in the Philippines’ capacity to compete for high-value investments,’ Peza Director General Tereso Panga said in a statement. ‘We will sustain this momentum and continue turning investor confidence into tangible economic opportunities for Filipinos.’

From January to August, Peza approved 196 new and expansion projects, up 9.5 percent from 179 projects in the same period last year. These are expected to generate $6.60 billion in exports and create 26,994 direct jobs nationwide.

Manufacturing accounted for the largest number, with 80 projects, followed by 31 ecozone developments, 30 information technology-business process management projects, 19 facilities projects and 15 logistics ventures.

Outside the Philippines, Peza said its largest source of investments were the Netherlands, South Korea, Singapore and Taiwan.

Of the 196 projects, 34 were tagged as big-ticket investments, with a combined value of P193.71 billion.

Among the nine big-ticket projects approved in August were two facilities enterprises in Tarlac with combined investments of P35.39 billion and two electronics and semiconductor manufacturing services projects in Laguna worth more than P3 billion.

Four new ecozone development projects worth a combined P22.39 billion are also planned in Cavite, Bataan, Davao del Sur and Cebu, while a billion-peso export-oriented enterprise venturing into the domestic market will locate in Tarlac.

In terms of actual performance, Peza-registered ecozones generated $32.89 billion in exports in the first half, up 2.35 percent year-on-year. Direct employment likewise increased 1.56 percent to 1.82 million workers.

The surge in August approvals boosted Peza’s bid to reach P300 billion in investments in 2026, a target set by the Department of Trade and Industry at the start of the year.

If met, this would mark a 15-percent increase from the P260.89 billion in approvals recorded in 2025.

As of August, Peza had approved P216.46 billion in investments, or 72.16 percent of its full-year target. This was also 104.53-percent higher than the P105.83-billion recorded in the same eight-month period last year.

The Philippine National Police (PNP) maintained that the confrontation between Highway Patrol Group (HPG) and Bureau of Customs (BOC) personnel during an operation in Bulacan was an ‘isolated incident.’

In a press briefing in Camp Crame on Wednesday, PNP public information chief Col. Allen Rae Co said the agency’s chief, Gen. Jose Melencio Nartatez Jr., ordered their Directorate for Investigation and Detective Management (DIDM) to look into the incident.

‘We value our relationship with the BOC. This is an isolated incident,’ Co stressed.

At least 12 HPG National Capital Region personnel allegedly raided a warehouse containing allegedly smuggled cigarettes in Santa Maria, Bulacan last August 19, frisking and handcuffing some BOC personnel before their officials intervened.

The HPG maintained that its operation sought to confiscate the cigarettes and arrest two BOC personnel allegedly reselling the contraband, but the bureau asserted it was conducting its own legitimate operation to incinerate the seized products as part of standard procedures.

The implicated HPG personnel were since relieved from their posts pending investigation, while BOC Commissioner Ariel Nepomuceno said he intends to file administrative cases against them before the National Police Commission (Napolcom).

‘All units concerned na pwedeng gamitin ng DIDM ay magagamit rito sa pag-imbestiga to get to the truth regarding all circumstances regarding the incident,’ Co explained.

(All units concerned can be deployed by the DIDM to investigate and get to the truth regarding all circumstances regarding the incident.)

For its part, Malacañang said it trusted the PNP and the BOC to investigate the incident fairly.

Tycoon Ramon Ang’s New Naia Infra Corp. (NNIC) is setting new, clear-cut performance standards for airlines operating at Ninoy Aquino International Airport (Naia), starting with the country’s flag carrier, Philippine Airlines (PAL).

NNIC, which took over the country’s primary gateway in 2024, said the new operating framework will spell out how airlines use Naia facilities and infrastructure, as well as define the respective responsibilities of carriers and the airport operator.

There will also be key performance indicators meant to improve operational efficiency at the congested Naia.

In a statement on Tuesday, the San Miguel Corp.-backed NNIC described the move as part of Naia’s overall refresh, which it is now extending beyond terminals, facilities and airport systems to how operations across the gateway are managed.

‘This agreement gives us a clearer framework for setting expectations, measuring performance and working together to maintain consistent service standards,’ NNIC president and CEO Ang said. ‘That is important to making airport operations more efficient and dependable.’

As part of this push, the Lucio Tan-led PAL signed the first standardized Airport Use Agreement with NNIC, a framework that the Naia operator intends to use as a blueprint for future agreements with other airlines using the gateway.

While it described the deal only in broad strokes, NNIC said the agreement was meant to make airline operations more consistent and improve coordination among the different parties involved in moving passengers, baggage and aircraft through Naia.

Under the framework, the agreed service levels will be part of PAL’s contractual obligations and will include mechanisms for addressing persistent failures to meet the standards.

‘This is a positive development for both PAL and NNIC, and ultimately for our passengers. It supports the continuing modernization of Naia and our collective goal of delivering a better airport experience,’ Lucio Tan III, president and COO of the airline’s parent company PAL Holdings Inc.

NNIC said it was taking a similar approach with ground handlers and other service providers at Naia.

Since taking over the airport, NNIC has been upgrading its terminals, airport systems, airfield infrastructure and passenger amenities while seeking to address long-standing capacity and operational constraints.

In 2025, Naia recorded its highest annual passenger count, with 52.02 million travelers passing through the country’s main gateway.