BAHAMAS-LABOUR-PM makes direct pitch to workers as unions plan nationwide strike

Prime Minister Phillip Davis has appealed to public sector workers to take into consideration the existing socio-economic conditions in The Bahamas as trade unions plan mass demonstrations across the country on Wednesday in support of their demands for the payment of salary increases to their members.

The Bahamas Union of Teachers (BUT) and Bahamas Public Services Union (BPSU) have called on workers to march in downtown Nassau, with the BUT urging teachers in Grand Bahama to gather outside the Office of the Prime Minister (OPM) in Freeport, and for Family Island teachers to stay at home.

Prime Minister Phillip Davis addressing the nation on the labour dispute

The BUT and other unions are demanding retroactive pay dating back to September 2024, and that all increases be applied and paid by the October payday, not December as previously stated by the government.

‘Senior civil servants already received their retroactive pay – thousands of dollars – backdated to September of last year. We’re saying the small man deserves the same. This isn’t a gift. It’s money already earned,’ said BUT President, Belinda Wilson.

But In a national broadcast on Tuesday night, Prime Minister Davis said that he was appealing directly to the workers saying that when he came into office in 2021, ‘we met a country still recovering from crises.

‘The economy was fragile. Thousands of Bahamians were out of work. Public finances were under strain. And within the public service, morale was low. Salaries had been stagnant. Promotions were delayed. Contract workers were stuck in limbo. Pensioners were struggling to live on fixed incomes that hadn’t been adjusted in years.’

Davis said that over the past four years, the government has worked steadily to restore fairness, dignity, and opportunity for workers.

‘We restored annual increments in the public service, those small but important step increases that reward years of service. For thousands of public officers, that meant more money in their pockets every year and an acknowledgment of their dedication.

‘We raised the national minimum wage for the first time in seven years, from US$210 to US$260 a week. That single decision increased take-home pay by nearly a quarter for the lowest-paid workers in this country. For many families, it meant an extra bag of groceries, a school uniform, or a light bill paid on time.’

He said that the government has negotiated and signed over 59 labour agreements, providing new wage increases, better allowances, modernized benefits, and clear career paths.

‘And still, with all of this progress, I was not satisfied. I knew we could do more for the men and women who serve this country every day. That’s why I initiated the national salary review, not the unions, not anyone else. I did it because I believed Bahamian workers deserved more. That is how we got to this moment.’

Prime Minister Davis said that he met with the leadership of the BUT and other public service unions, discussing the national salary review as well as the process the government initiated to ensure every public servant is paid fairly.

He said ‘we reviewed the findings, exchanged ideas’ and agreed to meet for further discussions.

‘But while we were still at the table, one of the union leaders made a public threat to call a national strike if I did not agree to the terms being demanded. Now, I understand emotions. I understand frustration. People want results. But when both sides are still talking, the respectful thing to do is to finish the conversation.’

Prime Minister Davis said that so instead of continuing under that kind of dynamic, he has decided to speak directly to the Bahamian people.

‘Here’s where we are. The national salary review is complete, and it will be made public. While the review did not include every category of public servants, the same methodology will be applied to ensure increases are extended across the wider public service.’

He said that the findings show that since coming to office in 2021, public officers have received salary increases every year, and that entry-level workers, the ones earning the least, have benefited the most with the consistency and regularity of their reassessments, salary adjustments, and increments, ensuring that these officers received their due in a structured, timely way, after many years of delay.

‘We did this because we made a decision to put workers first. Some have asked about the delay. The delay was not a cash flow problem. It was an administrative process, making sure the new salary adjustments for more than fifteen thousand public officers were accurate, fair, and done right the first time.

‘I am satisfied we have resolved the issue, and I want to reassure every public servant that you will be paid before Christmas,’ Davis said, adding ‘the union leaders have to do their jobs, to represent their members.

‘But I have to do mine, to represent all Bahamians. My responsibility is not only to one group, but to every citizen who depends on a strong, stable country. Some have asked what the grievance really is. There is no grievance here.

‘The grandstanding and public drama do not change the fact that this Government is paying workers as promised. So the question must be asked, is the objection to the fact that we are paying? Surely, no one can object to fairness being delivered.’

Prime Minister Davis said he will on Thursday meet with other trade union leaders to continue the national conversation about how ‘we keep moving forward together’ adding ‘I have always respected the role of unions in our national story.

‘I believe discussions work best when there is mutual respect and trust. I have always been a respectful and patient listener, and I am open to any conversation held in good faith. But I will not take part in any process where dark clouds of threats hang over the table.

‘That is not how I was raised, and that is not how I lead. I don’t believe in shouting matches or grandstanding,’ Davis said, adding ‘ I will not sit in any room where respect is not mutual and shouting is the only tool on the table’.

BAHAMAS-ENVIRONMENT-Bahamas may not vote in favour of controversial net-zero shipping framework

Bahamas has become the second Caribbean Community (CARICOM) country to indicate that it will not be voting in support of a Net-Zero Shipping Framework (NZF) aimed at reducing reducing emissions in the maritime sector.

Earlier, Antigua and Barbuda Prime Minister Gaston Browne said St. John’s was not in favour of voting in support of the measure being pushed by the International Maritime Organization (IMO) that was approved in April this year.

Bahamas Foreign Affairs Minister, Fred Mitchell.

‘Like the United States, we are equally concerned about this transition and we think that there should be a deferral and if there is no deferral, then we clearly will abstain,’ Prime Minister Gaston Browne told the state-owned ABS, saying Antigua and Barbuda favours a deferral in the adoption of the proposal as it will likely affect cost of living for the people of this country.

‘ We will not vote against it because at the end of the day, we are one of the most strident climate advocates as we have been advocating for net-zero, so we do not want to undermine our overall position on this transition to renewables and to achieve net-zero as soon as possible,’ Browne said

The matter is set for adoption during the Marine Environmental Protection Committee meeting that is taking place until October 17.

‘The Bahamas had some time ago written to the IMO to ask for the vote to be postponed, and if the vote is not postponed, we expect to abstain,’ said Foreign Affairs Minister, Fred Mitchell.

IMO Secretary-General, Arsenio Dominguez, said while the IMO Net-Zero Framework ‘is not perfect,’ it ‘provides a balanced basis for our further work ahead of its entry into force in 2027.

‘This process has been inclusive and thorough,’ Dominguez added, urging delegates to approach the talks ‘with diplomacy and respect.

‘Here, we are diplomatic and respectful to one another, we listen to everyone’s opinion, we take steps forward and we are always looking to improve in this ever-changing sector.’

In a joint statement issued by the Secretary of State Rubio, Secretary of Energy Chris Wright, and Secretary of Transportation Sean P. Duffy, the United States warned countries against supporting ‘this European-led neocolonial export of global climate regulations.

‘We will fight hard to protect our economic interests by imposing costs on countries if they support the NZF. Our fellow IMO members should be on notice,’ they said.

Washington has said that President Donald Trump has made it clear that the United States will not accept any international environmental agreement that unduly or unfairly burdens the United States or harms the interests of the American people.

It said that this week’s vote on the adoption ‘will be the first time that a UN organization levies a global carbon tax on the world.

‘The Administration unequivocally rejects this proposal before the IMO and will not tolerate any action that increases costs for our citizens, energy providers, shipping companies and their customers, or tourists.

The NZF seeks to reduce greenhouse gas (GHG) emissions from international shipping to align with the 2050 net-zero target. Key components include a Global Fuel Standard (GFS) setting annual GHG intensity reduction targets, a two-tier carbon price mechanism, and a credit trading system funded by penalties to reward zero and near-zero emission fuels and support a just transition.

The NZF presents a new regulatory era in which ships will be required to gradually adopt fuels that are typically three to four times more expensive compared with conventional fossil fuels. Given the long lifespan of ships, shipowners should prepare now for the new net-zero GHG emission regulations to ensure cost-effective compliance, both at the ship and the fleet level.

The Framework will apply to all oceangoing ships over 5,000 gross tonnage (GT). These ships are responsible for over 85 per cent of global shipping emissions and are already covered by reporting requirements for fuel data collection. Ships under 5,000 GT are currently not covered.

East West Bank taps LinkedIn for employee training

THE Gotianun-led East West Banking Corp. announced last Wednesday its three-year partnership with LinkedIn Corp. to train its employees across functions and roles.

According to the bank, it has purchased the services of the Sunnyvale, California, US-headquartered firm to allow employees ‘to build skills at their own pace, explore personalized learning paths and apply insights directly to their work, whether in customer service, branch operations, risk, technology, finance or human resources (HR).’ The bank didn’t disclose its investment.

When checking the prices for LinkedIn’s services, a Google AI-aided search revealed that ‘LinkedIn offers a variety of learning content, but specific pricing depends on the subscription plan, such as ‘Premium Career’ at around $29.99/month, ‘Premium Business’ at about $59.99/month, and ‘Sales Navigator’ at approximately $99.99/month.’

According to East West Bank CEO Jerry G. Ngo, the partnership brings LinkedIn’s ‘global library of expert-led content directly to every EastWestbanker.’ ‘It doesn’t matter if the employee is in branch operations, risk, technology, HR, finance, or customer service, our team will now have access to thousands of courses covering leadership, communication, data analytics, digital skills and more,’ Ngo said.

‘For me, learning has always been personal. It helps me stay curious, ask better questions, and keep moving forward even in uncertain times. That is why I believe learning should never stop. The combination of study and practice keeps us sharp, helps us make better decisions, and shows us that growth is possible at every stage of our careers, from the first role to leading a team,’ he added.

The launch event featured a ceremonial signing with East West Bank and LinkedIn executives.

‘What we’ve launched today is an enabler of purpose, growth, and leadership continuity. As we move forward, this partnership allows us to support every EastWestbanker with resources that are relevant, personalized, and accessible, no matter what function they’re in, or what point they are in their career journey,’ East West Bank Executive Vice-President Alfie D. Suarez said during the launch.

‘Through LinkedIn Learning, our teams can now build skills at their own pace, explore curated learning paths based on their roles, and apply what they learn directly to their work. For EastWest HR, this also enables more strategic workforce planning. This is especially important as we aim to make learning a daily habit and not just a training calendar item,’ Suarez added. According to him and other executives, the bank’s move ‘is designed to nurture a future-ready organization, where learning is not confined to a classroom but becomes part of the bank’s culture and edge.’

‘With tools to track progress and tailor learning journeys, the bank aims to accelerate leadership development and strengthen its talent pipeline,’ read a statement the bank issued.

Marcos says administration remains on ‘solid ground’

President Ferdinand Marcos said his administration remains on ‘solid ground’ when it comes to getting wide support from the public and military but he is cautious of efforts to bring down his administration.

The chief executive made the statement when asked in a press conference in Malacañang last Wednesday if he is concerned over coup threats from the military and the looming anti-corruption rallies next month.

He said he is confident he still has the support of ‘important sectors of society’ since he constantly listens and try to address to their grievances. The said dialogues, he said also allows him to be wary of potential threats to his administration.

‘And you know, it is never – it doesn’t serve any – it is dangerous for someone in my position to be complacent and to say, don’t worry everybody is okay, everybody,’ he said.

‘So, when you ask me how confident I am, all I can say is that in our assessment, we are still very much – the administration is still very much on solid ground in terms of support from the different sectors of society,’ he added.

The President, however, said that the opposition is actively trying to remove him from office for political reasons.

‘They want to oust me. Okay, let’s just see what they’ll do,’ he said in Filipino.

Open to investigation

He said he is ready to face head on the said attempts from the opposition, particularly when it comes to the multi-billion flood control projects.

‘And on this, I’m confident that whatever mud might be slung at the administration, that we will be able to show that these are politically motivated and do not actually have any validation in fact,’ Marcos said.

Any attempt to link him to the controversies, he said, will fail since he knows he did nothing wrong when it comes to flood control projects and other public works.

In fact, he said he open to being investigated by the Independent Commission for Infrastructure (ICI).

The ICI is currently conducting probes on billions worth of substandard, non-existent, and overpriced public works

‘That’s why we have the ICI. They are an independent commission. And that is their job. And their job is to follow the leads that they receive. And if necessary or if it is justified, that they can – they will now recommend to either the Ombudsman or to the DOJ (Department of Justice) that cases be filed,’ Marcos said.

‘So, let them do their work. We do not interfere with what they do.We are not hiding anything.,’ he added.

Sorsogon town regulates use, sale, distribution of vapes

For the children of Casiguran, Sorsogon an ordinance passed regulating the use, sale, and distribution of vaporized nicotine and non-nicotine products, with penalties for anyone who violates its provisions, is more than a policy but a promise that their health, their future, matter.

In a landmark move to uphold and protect the children’s health, the Sangguniang Bayan of Casiguran passed Ordinance No. 2025-52 on June 30, 2025. The law was signed by Mayor Maria Minez R. Hamor on September 9, 2025, making Casiguran the first municipality in Sorsogon Province to extend its anti-smoking ordinance to cover vapes as well.

Casiguran is a Red Orchid Awardee, recognized by the Department of Health for rigorous enforcement of smoke-free environments and tobacco policy criteria aligned with DOH standards. This distinction honors LGUs, agencies, and hospitals that excel in implementing tobacco-free policies through measures such as monitoring tobacco use, protecting citizens from exposure, offering cessation services, warning about risks, enforcing advertising bans, and raising taxes.

Significant extension

The addition of anti-vaping measures is a significant extension, prompted by serious concerns about rising vape use among the youth.

‘When we protect the youth, we protect the future. This ordinance is proof that Casiguran believes in the power of a healthy, hope-filled tomorrow,’ Vice Mayor Dennis Escudero said.

Data from the 2019 Global Youth Tobacco Survey (GYTS) reveals that among students aged 13 to 15 in the Philippines, about 14.1 percent are current users of e-cigarettes. That’s about one in seven youth already vaping. Meanwhile, 24.6 percent have tried vaping at some point.

More recently, the Food and Nutrition Research Institute (FNRI) reported that youth users of vape escalated sharply: from around 37,500 in 2021 to over 423,000 in 2023. That’s more than a 1,000 percent increase.

These statistics show that despite progress in reducing smoking among younger people, vaping has surged, and it is the kids drawing in first. Flavored products, easy accessibility, and the presence of vape products in social media are frequently cited reasons.

Alarming trends

With these alarming trends, the youth of Casiguran are at the heart of this ordinance. The ordinance is designed to shield young people from the harms of tobacco use: restrictions on sale and distribution; penalties for violations; and regulating use in public spaces where youth are likely exposed.

‘There is an urgent need to protect our youth from the harms and dangers of vaping,’ Mark Elmo Buenaobra, President of Pambayang Pederasyon ng SK-Casiguran, Sorsogon shared in an interview.

‘By bringing vaping under the legal framework already governing smoke-free areas, Casiguran’s leadership aims to send a clear message-that protecting kids from the addictive and harmful effects of vaporized nicotine is not optional,’ he added.

The inclusion of anti-vaping measures in its ordinance underscores Casiguran’s commitment to staying ahead of emerging health threats. Vaping, often marketed as a ‘safer alternative’ to cigarettes, has been linked to nicotine addiction and long-term health risks, while the improper disposal of devices adds to environmental hazards.

Vital role

The Parents Against Vape (PAV) organization played a vital role in the ordinance’s development.

Officers and members of PAV actively joined public consultations, offering recommendations and raising key considerations that helped shape the final provisions of the law.

Their advocacy reflects growing concerns among parents, educators, and health professionals about the rapid spread of vaping among the youth.

Rebie Relator, President of PAV, emphasized why their involvement mattered: ‘As parents, we cannot stay silent while our children are being lured into addiction through sweet flavors and deceptive marketing. We have seen how quickly vaping spreads among the youth, and how easily it can undo years of progress against smoking. The passage of this ordinance is not just a victory for Casiguran. It is a victory for our kids’ future.’

Palay farm gate hits lowest level in nearly 5 years-PSA

THE average farmgate price of palay in September plunged to its lowest level in nearly five years, according to the Philippine Statistics Authority (PSA).

Data from the PSA showed that the average farm gate price of unmilled rice fell by 30.5 percent to P15.60 per kilo in the reference month from P22.43 per kilo last year.

The latest farm gate price is the lowest level recorded since November 2020, when it settled at P15.03 per kilo, based on PSA data.

On a monthly basis, the average quotation in September dropped by 8.6 percent from P17.06 per kilo in the previous month.

Ilocos Region had the fastest decline in the reference month, where the farm gate prices had a year-on-year drop of 43.5 percent, based on PSA data.

The farm gate prices in the region averaged P14.3 per kilo in September, lower than the P25.29 per kilo last year.

This was followed by Cordillera Administrative Region (CAR), which registered a 38.2-percent contraction to P12.79 per kilo last month from P20.71 per kilo in September 2024.

Top rice-producing regions Central Luzon and Cagayan Valley also posted a year-on-year decline in farmgate prices of palay by 32.9 percent and 36.8 percent, respectively.

The government has been scrambling to prop up farmgate prices of paddy rice, which fell to a low of P8 per kilo, especially with torrential downpours threatening to blunt improvements in palay harvests due to poor grain quality.

President Marcos earlier imposed a temporary ban on foreign rice shipments for 60 days starting September 1, as industry sources claimed that the unabated entry of cheaper imports pulled down the farmgate price.

Agriculture Secretary Francisco Tiu Laurel also announced that the government will extend the import ban until the end of 2025.

He added that Marcos is considering restoring the 35-percent rice tariff, which was slashed to 15 percent in July 2024 as part of the government’s effort to bring down retail prices.

‘If the tariff hike is approved, well and good,’ Tiu Laurel said. ‘But if not, our fallback plan-already supported by the President-is to allow importation only in January, and suspend it again from February to April to protect the next harvest.’

The DA chief also noted that Marcos would issue an executive order that would set a floor price for unmilled rice, which he said should be P17 per kilo for wet palay.

CostPlus, BCDA forge RE pact

State-run firm Bases Conversion and Development Authority (BCDA) has inked a deal with Filipino tech firm CostPlus Inc. to explore the development of ‘innovative’ renewable energy (RE) solutions in New Clark City and other BCDA-managed properties.

BCDA President and CEO Joshua M. Bingcang and CostPlus President Anand Mahtani signed last October 14 a memorandum of understanding (MOU) that will ‘pave the way for feasibility studies on key sustainable energy initiatives.’

‘We are confident that together we can unlock the full clean energy potential of New Clark City, and show the rest of the country that green development and economic growth can go hand in hand.’

Under the agreement, BCDA said proposed projects include the development of a 5-megawatt microgrid system powered by solar energy, battery storage, and auxiliary power technologies.

Another ‘major component,’ BCDA noted, is the establishment of a 20-metric ton per day waste-to-energy (WTE) facility, designed to convert solid waste into compressed natural gas (CNG) that can be used to fuel public transportation.

The facility is also expected to produce high-grade fertilizers as a valuable by-product.

Mahtani said the initiative will convert waste into compressed natural gas, providing a sustainable energy source to support the fuel needs of jeepneys.

Meanwhile, CostPlus donated an electric bus to BCDA, demonstrating both parties’ ‘shared commitment’ to advancing green mobility and supporting the government’s broader sustainability agenda.

The signing event was also witnessed by Indian Ambassador to the Philippines Shri Harsh Kumar Jain, Mahtani and BCDA Executive Vice President and COO Gisela Z. Kalalo.

The state-run firm said this is part of BCDA’s broader commitment to position New Clark City as ‘a model for smart, resilient, and sustainable urban development in the Philippines.’

Josie Conlu: UAE’s Filipino community champion

For over 15 years, Josie Conlu has been at the forefront of serving the Filipino and wider expatriate communities in Dubai, earning recognition as the community’s most familiar and influential personality. Known for her warmth, generosity, and infectious positivity, she is also an award-winning personality, a dedicated youth mentor, and an advocate for SMEs, empowering individuals and communities to grow, thrive, and contribute meaningfully.

Through her current flagship platform, Love Josie, Josie connects communities, fosters engagement, and celebrates Filipino culture across the UAE. The platform has become a trusted hub for information, inspiration, and connection, offering guidance and support to families, workers, and youth alike.

Ms. Josie Conlu, with the Emirates Loves Team, during the Kalayaan 2024 Celebrations.

During her pioneering work as Project Manager for Emirates Loves under the Dubai Government Media Office, Josie helped build these into formidable community platforms with a 14-country reach and over 10 million followers, creating spaces for engagement, cultural dialogue, and authentic community connection. Her work demonstrated a keen ability to mobilize communities, foster meaningful relationships, and deliver initiatives at scale.

Ms. Josie Conlu, whose work bridges cultures through community initiatives together with Infinite Communities, and under Emirates Loves Management, with H.E. Sheikh Nahyan bin Mubarak Al Nahyan, UAE Minister of Tolerance and Co-Existence.

Through her partners Infinite Communities, The Filipino Channel, and Emirates Loves Philippines, Josie organizes landmark events that have become cultural touchstones for the Filipino community. Kalayaan, one of the largest Philippine Independence Day celebrations outside the Philippines, attracts over 40,000 attendees annually, while Shukran, the annual Filipino Thanksgiving, celebrates the community’s contributions to the UAE while honoring the host country. These events exemplify her dedication to cultural celebration, unity, and recognition.

Her influence is rooted in deep ties with key UAE institutions and the diplomatic community. She collaborates as a trusted partner in distributing reliable information, serving as a bridge between authorities and communities to ensure initiatives are impactful and relevant.

Ms. Josie Conlu with Lieutenant General Mohammed Ahmed Al Marri, Director General of the General Directorate of Residency and Foreigners Affairs, Dubai.

Ms. Elena Cruz, Founder and CEO of Infinite Communities; Ms. Laline Ver, wife of the Ambassador; H.E. Alfonso Ver, Ambassador of the Philippines to the UAE; and Ms. Josie Conlu at the opening of ‘Una Baguena: A Story and Beauty’ at the Louvre Abu Dhabi.

Josie’s commitment to community development extends to education and skills empowerment. Through her partnership with Crescent Circle Training Institute, she is helping a growing number of Filipino migrant workers access scholarships and highly affordable tuition, making professional upskilling and growth achievable for hardworking Kababayans striving to improve their lives and careers in the UAE.

Ms. Josie Conlu with H.E. Mohamed Obaid Salem Alqataam Alzabi, UAE Ambassador to the Philippines

Beyond her community work, Josie’s unique brand universe and credibility have made her an excellent and trusted brand ambassador for sustainable brands, allowing her to authentically represent initiatives that align with her values and positively impact communities.

Reflecting on her journey, Josie shares, ‘I am humbled to serve my community, and every connection reminds me that leadership is about listening, supporting, and lifting others.’ Her energy, positivity, and integrity are evident in every initiative she leads, inspiring communities, celebrating heritage, and creating enduring impact across the UAE.

With her strategic vision, compassionate leadership, and unwavering dedication, Josie Conlu continues to shape Dubai’s social fabric. Her tireless efforts prove that one committed individual, grounded in humility and driven by purpose, can transform the lives of thousands and inspire generations to come.

EPI unit service contract revoked

Mindoro Geothermal Power Corp. (MGPC), a subsidiary of Emerging Power Inc. (EPI), said on Wednesday the service contract for its Montelago Geothermal Power Project has been revoked by the Department of Energy (DOE).

The DOE letter of final and irrevocable termination of Geothermal Renewable Energy Service Contract No. 2010-02-013 between MGPC and the DOE covering the geothermal project also stated that the company must pay $120,000 within 30 days from date of receipt.

The DOE, according to MGPC, cited failure to comply with the required milestones as stipulated in approved five-year work program of the project. MGPC said it will settle the financial obligation within the period required by the DOE.

‘The company has fully provided for the impairment of its investment in EPI in relation to EPI’s investment in MGPC. The termination of the service contract and the payment by MGPC of the financial obligation will not have a material impact on the company’s financial situation,’ it said.

The geothermal project was supposed to provide 40 megawatts (MW) to stabilize power and electricity costs in Mindoro. The project was plagued by delays due to, among others, withdrawal of endorsement by a local government.

EPI is a subsidiary of Nickel Asia Corp.

Reforms, not removing ?1K bills, right tack

INSTEAD of literally removing ‘dirty money’ from circulation through demonetization, bank-secrecy reform, digitalization and transparency measures are more targeted and capable of real change, according to the Bangko Sentral ng Pilipinas (BSP).

In a research blog, BSP officials Maria Margarita Debuque-Gonzales, Mamerto E. Tangonan and Eloisa T. Glindro wrote that financial transparency reforms offer far greater promise in combating corruption.

Among the reforms proposed is changing the country’s Bank Secrecy Law, which remains one of the strictest in the world, according to the BSP.

Amending the law, the authors said, would empower investigators to trace illicit funds, match deposits to asset declarations and build prosecutable cases.

They also recommended digitalizing and streamlining procurement to minimize discretion and leakage, and strengthening anti-money laundering and counter-terrorism financing enforcement, particularly for politically exposed persons.

Promoting broader financial inclusion through publicly supported digital payment systems to lessen reliance on physical cash was also among the measures highlighted.

‘As international experience shows, denomination or payment-system reforms are most effective when sequenced with broader structural shifts-such as digital adoption, transparency initiatives and institutional strengthening-rather than pursued in isolation,’ the authors wrote.

Although removing the highest denominations from circulation to flush out ‘dirty money’ from the banking system to confront graft may be ‘tempting,’ cash is still king in the Philippines.

The P1,000 bill dominates daily transactions and is preferred for regular and recurring transactions by Filipinos, according to the BSP.

‘The P1,000 bill, in particular, is the economy’s workhorse,’ they said.

Citing the BSP’s Currency Policy and Integrity Department (CPID) draft working paper, the P1,000 bill accounts for 83 percent of the total value and 40 percent of the volume of all banknotes in circulation.

The CPID estimates that replacing the P1,000 and P500 notes, or about 2.5 billion pieces worth P2.2 trillion, would absorb 93 percent of the value and 51 percent of the volume of all notes in circulation.

This would cost around P11.5 billion just in printing, excluding replacement, storage, transport and destruction costs, according to CPID.

It would overload automated teller machines and cash drawers, and require expanded armored car logistics and more vault space for banks and businesses.

‘The logistical cost would far outweigh any potential benefit,’ the BSP officials said.

Moreover, they cited an analysis by the BSP suggesting that the P1000 bill remains appropriate for current price levels, and an even larger denomination might be justified.

During the 2020 pandemic, withdrawals of P1,000 notes hit P1.3 trillion, showing public reliance on cash as a safe asset.

‘Eliminating this denomination could disrupt liquidity, particularly for households and small firms that remain outside the formal financial system,’ they said.

Retiring high-value notes may appear as a ‘clean break with the past’ by removing ‘tainted’ money from circulation, but it is ‘deceptive,’ the authors added.

‘As seen in some developing economies, sudden demonetization can erode confidence in the central bank and fuel suspicion of political motives,’ they noted.

In developing economies where institutional trust still needs to be nurtured, credibility is hard to regain once lost, they added.

Palace has no stand yet

Despite the BSP’s opposition to the proposal to ‘demonetize’ P1,000 and P500 bills, Malacañang has yet to rule out the said measure.

Palace Press Officer Claire Castro said the Marcos administration is still open to the proposal made by Former Finance Secretary Cesar V. Purisima to phase out said bills and make P200 the highest circulating bill.

Purisma claimed the measure will discourage corrupt officials from moving large amounts of illicit cash. Legislative hearings on the raging flood-control fund anomalies have unearthed practices of physically withdrawing boxes of cash, loading them on to ordinary cars and stocking them in mini-warehouses or even condo units of syndicate cohorts.

‘So, we will study it, because if it is not good and has a negative effect [on the public], we will study it to balance the pros and cons of what is being suggested.’ she said in Filipino in a press briefing Tuesday.

BSP Governor Eli M. Remolona, Jr. earlier expressed his reservation on the measure since it will cause inconvenience the public, when it comes to using bills.

Currently, BSP mandates banks to report transactions, which involve P500,000 or more.

Castro said the economic managers will still look into the matter.

‘I will first ask the DOF [Department of Finance] [about the] question so that the answer is more detailed,’ she said.