Healthcare systems are adopting emerging technologies at a rapid pace as providers respond to rising demand for modernized services. Tools such as telehealth services, telemedicine platforms, artificial intelligence-supported听diagnostics, and remote monitoring systems are becoming more common across clinical environments.

These technological developments formed part of the discussions at the 大象传媒 Insights forum held at Dusit Thani Manila on April 29.

Themed 鈥淭ech in Wellness: Shaping the Future of Health,鈥� the event gathered industry leaders and health experts to explore the country鈥檚 progress in using technology for patient care.

The forum started with PharmaServ Express Medical Director Dr. Salvador Pedro G. Rebullida noting recent advances have widened the reach听of healthcare.

鈥淒igital revolution is quite deep-rooted in our current healthcare, and it’s been a struggle that our healthcare is taking a gap reaching the far-flung areas,鈥� Dr. Rebullida said during the fireside chat. 鈥淥ur government and our private institutions are reaching out and are able to bridge those gaps gradually and slowly, not only through physical means, but also through technology.鈥�

The听coronavirus听disease听2019听(COVID-19)听pandemic forced an abrupt change in how care听was delivered, pushing both providers and patients toward online platforms.

鈥淭hat period has actually transitioned our healthcare mainly because of the events that isolated each individual. It was really traumatic for a lot, not only for Filipinos but around the world. It was a really traumatic period, and it gave us a way to innovate; and that innovation led to our online technology and reachability,鈥� he explained.

Technological expansion did not stop at telemedicine alone, as healthcare providers began using digital tools for follow-ups, monitoring, and coordination of treatment. However, Dr. Rebullida noted that gaps remain, especially in infrastructure and consistency of service.

Addressing gaps

Delivery of medicines, for instance, remains a major hurdle. Unlike standard consumer goods, medications require strict temperature control and handling protocols.

鈥淢edications are not the same as products delivered in a normal courier,鈥� he said. 鈥淲e have to preserve the integrity of medications.鈥�

He warned that improper handling during transport can affect drug quality, which may delay recovery or lead patients to question treatment outcomes. Delivery delays also remain a concern, particularly in areas with limited transport infrastructure.

For its part, Dr. Rebullida noted, PharmaServ Express has sought to address these gaps by focusing on specialized logistics. The company previously handled large-scale vaccine storage and distribution during the pandemic, including deliveries to geographically isolated areas using temperature-controlled containers.

Now, the company has introduced a mobile application that allows users to locate and order medications from nearby pharmacies at comparable prices. It also includes access to specialty drugs that may not be available in typical retail outlets.

鈥淭he dream of PharmaServ Express is to be able to give [medicines] to Filipinos in a day-to-day situation, wherein the medications that the patient needs are delivered to them, protected, preserved and quick, and they will be able to be treated better because they have the right medicine and the right preservation of these medications,鈥� he explained.

Dr.听Rebullida听added that technology,听logistics, and policy must align to improve healthcare access nationwide.听While mobile apps and digital tools have expanded reach, he said they cannot fully address systemic gaps on their own.

鈥淭ech alone is not the only way to solve our healthcare听[system],鈥� he said.听鈥淚f patients are not getting the right medication regularly, they will end up spending more.鈥�

Prerequisites

During the forum鈥檚 first panel discussion, Dr. Jaime Z. Galvez Tan, chairman of Health Futures Foundation and former Health secretary, bared his advocacies and work in fifth and sixth-class municipalities in Samar, South Cotabato, Palawan, and various areas in Luzon.

鈥淲hen we say access, I always say equity and equality are the major key values that I emphasize. Because right now, even in healthcare,听there’s听a real divide, not of geography but between the poor and the rich. So,听that’s听why we听have to听continue to bridge this divide before we can go to the digital divide,鈥澨鼶r. Galvez Tan said.

As for the most prominent evidence of a digital divide in his advocacy areas, he revealed that far-flung barangays are already equipped with some of the essentials, such as health equipment, cellphones, televisions, and proper infrastructure. Despite this, internet connectivity remains elusive.

鈥淲here is the link with the internet connection? And even if there’s an internet connection, there’s still the irregularity of the internet connection. So, that’s one of the biggest challenges.鈥� Dr. Galvez Tan said. 鈥淣ow, let’s say we have installed it. Then, the problem now is internet subscriptions because they are in really poor barangays.鈥�

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Key people needed

Building on his earlier statements, Dr. Rebudilla emphasized the necessity of first establishing facilities, saying that these communities cannot be treated without proper facilities, help, or an identified community leader to head the betterment of the barangay.

He added that one of the things that can really help bridge healthcare access is artificial intelligence (AI). However, he also warned that since there are no laws in the Philippines governing AI management in delivering healthcare, dangerous听outcomes might arise despite听positive听ones.

鈥淎I is really generating [recommendations] on its own, and it’s the responsibility of the health leaders to say whether this recommendation is correct or not. So, AI has to be used responsibly; and at the end of the day, the physician or the local health leader has the responsibility to confirm whether this recommendation is applicable for that particular patient,鈥� Dr. Rebullida explained.

As a way to aid in this, Dr. Galvez Tan suggested the creation of 鈥渄igital health navigators鈥� who could help guide the public in identifying credible sources of health information and digital healthcare services, particularly as technology becomes more integrated into healthcare delivery. This, he said, also shows the need for stronger institutional support and clearer regulatory standards from both government agencies and healthcare stakeholders.

鈥淚 think this is where all of us here have a role to play, and this is where the听DoH, Philippine Health Insurance Corp.听(PhilHealth), and the Department of Information and Communications Technology can very well include also as part of their standards, regulations, as well as putting it into good practice,鈥澨鼶r. Galvez Tan said.

Beyond acceptance, empowerment

The panel also discussed the acceptance of healthcare that locals in far-flung areas are being given access to. In this regard, the panel agreed that while it is generally accepted in the medical field, there is some work to do for healthcare to be fully digitized in far-flung areas.

鈥淲hile there is openness, what is important is that there is also empowerment and training. What we have seen is that even basic computer literacy and digital literacy are lacking. Therefore, we need to train all our community health workers and community leaders in the basics of how to start a computer, how to operate it, and how to be aware of the digital world today,鈥� Dr. Galvez Tan.

鈥淎s I said, access is there, and openness is already there. The key is, again, empowering them well in the right way so that they听are able to听discern also听part of that information, discerning the fake from the real,鈥� he added.

Despite the challenges surrounding infrastructure, regulation, and digital literacy, the panel maintained that the continued integration of technology into healthcare systems presents significant opportunities to improve healthcare delivery and accessibility in underserved communities.

鈥淪o, I think the reconstruction and restructuring of the programs into the digital era has progressed these areas and municipalities to a better situation for their healthcare, for each individual,鈥� Dr. Rebullida said.

Accessibility and integrity

For his final statement, Dr. Rebullida emphasized the need to further strengthen healthcare accessibility in the country, particularly through broader financial support and expanded healthcare coverage for Filipinos.

鈥淢y dream is the expansion of coverage of PhilHealth to cover what’s necessary for Filipinos, and that includes patient consultations and hospital coverage. Because right now, there’s limited coverage for the patient and outpatient consultation,鈥� Dr. Rebullida said.

Meanwhile, Dr. Galvez Tan underscored that beyond expanding healthcare access and coverage, maintaining integrity and accountability in the management of digital health systems is equally essential as the country moves toward more technology-driven healthcare solutions.

鈥淎side from equity and equality, I’d like to add integrity. Integrity here is ensuring accountability in the information and in managing digital health and wellness, and, of course, anti-corruption measures. There’s no doubt about it. This is, let’s look at public goods versus private gain,鈥� he concluded.

Wellness听over treatment

Global healthcare has long听operated primarily as a reactive system that springs into action only when symptoms manifest and pathology takes root. Now, the industry is pivoting toward a proactive and technology-driven model that prioritizes wellness over mere treatment, as the panelists in the second panel discussion highlighted.

鈥淲ellness is not the absence of a disease. It is when we are, predictably, in control of our health,鈥� said Carelon Solution Philippines Managing Director for Clinical Solutions Dr. Salin Kataria.

He also noted that wellness is a broad spectrum of social determinants, such as income, quality of life, and access to care. It is an active pursuit involving mental health, social relationships, and environmental factors.

鈥淲e can obviously measure the physical parameters of health, but what鈥檚 more important is full health,鈥� he added. 鈥淚t鈥檚听all about all these components in the ecosystem that we look for to ensure we are well. The goal of being a truly well individual is how we improve those aspects of our lives, throughout our life.鈥�

As the concept of wellness expands,听so too听does the approach to healthcare delivery. Historically, systems intervene only when symptoms appear or diseases progress. But nowadays, there is a growing emphasis on prevention, early intervention, and long-term health maintenance.

鈥淲e鈥檙e starting to appreciate wellness [and] mental health,鈥� Intellicare Medical Group Officer Dr. Kristine Nimo-Alfonso said. 鈥淒uring previous times, none of these existed or we did not appreciate preventive methods.鈥�

Dr. Nimo-Alfonso noted that 60% to 70% of expenses for health maintenance organizations (HMOs) are driven by inpatient and emergency room admissions. These are often the result of complications from chronic diseases that could have been managed, or prevented, much earlier.

This shift听represents听not only a change in practice but also a redefinition of healthcare鈥檚 primary听objective. By investing in wellness, healthcare providers can reduce the听portion听of the budget consumed by late-stage interventions.

The urgency of integrating wellness into healthcare has been intensified by recent global events, particularly the COVID-19 pandemic. The crisis听exposed systemic vulnerabilities and highlighted the importance of maintaining overall health.

鈥淭he pandemic challenged our traditional perceptions of health, bringing the critical need to prioritize a better quality of life and total well-being; there鈥檚 a sound state of both body, mind, and spirit as well,鈥� said听Dr.听Reynold M. Sta.听Ana, senior occupational health officer at听the Occupational Safety and Health Center.

Wellness, in this context, has become essential to both individual resilience and the stability of healthcare systems.

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Investing in wellness

Beyond its health implications, wellness integration is economically strategic. A large portion of healthcare spending is driven by hospital admissions and emergency care, often linked to advanced or poorly managed chronic conditions.

Preventive measures, such as regular screenings, lifestyle intervention, and health education, can significantly reduce these costs.

鈥淚nvesting in wellness is not only altruistic, but also financially rational,鈥澨鼶r.听Nimo-Alfonso noted.听鈥淚ntegrating wellness into modern healthcare is about expanding the goal not only from treating a specific听disease, but听also optimizing the whole well-being of the person.鈥�

By minimizing the progression of chronic diseases, healthcare systems can听allocate听resources more efficiently. Dr.听Nimo-Alfonso explained that听medicine,听along with behavioral, social, and technological strategies,听help听people听create听a more听proactive, personalized, and sustainable听healthcare.

In addition, the integration of wellness is being accelerated by the 鈥渄epersonalization鈥� and听subsequent听鈥渉yper-personalization鈥� of healthcare through technology.听People听have moved into an era where real-time health data is not just available but actionable.

In revolutionizing wellness, the most significant platform is the workplace. Under the Department of Labor and Employment and Joint Administrative Order No. 001 S. 2023, workplaces are now听required听to implement wellness programs.

鈥淲e don鈥檛 want our workers to get sick because of the hazards present in their workplaces,鈥澨鼶r. Sta.听Ana said.听鈥淭he shift from reactive, disease-centered healthcare model to a proactive, wellness-oriented approach is an urgent and necessary transformation.鈥�

Organizations are also moving beyond mere compliance, as employers are increasingly investing in health programs that include regular assessments, chronic disease management, and targeted interventions for specific employee groups.

鈥淎 healthy individual has a better quality of life which can translate to better work, performance, and productivity,鈥� Dr.听Nimo-Alfonso听said. 鈥淚t听is a simple idea听鈥斕齥eeping people healthy is more cost effective than treating them when they already have complications.鈥�

Hence, the integration of听both technology and听wellness into modern healthcare听represent听a听big leap to make the current system听efficient and听equitable.

This 大象传媒 Insights forum was presented by 大象传媒 Corp., with the support of sponsors PharmaServ Express, Shinagawa Lasik and Aesthetics, and Cocolife; partners Asian Consulting Group, Asia Society of the Philippines, British Chamber of Commerce of the Philippines, French Chamber of Commerce and Industry Philippines, Management Association of the Philippines, Philippine Chamber of Commerce and Industry, Philippine Franchise Association, and Philippine Retailers Association; and official media partner The Philippine STAR.

In the past, air-conditioning in the Philippines was regarded as a hallmark of luxury, an optional appliance for those with the means to pay for it. Yet, as heat levels in Metro Manila continues to climb due to a combination of climate change, population density, and rapid urbanization, the rationality of this longstanding belief is quickly being questioned.

As of this May, the Philippine Atmospheric, Geophysical, and Astronomical Services Administration has warned that several regions of the country like Cavite, Iloilo, and Samar may reach a critical danger level heat index, reaching as high as a sweltering 45掳C. Meanwhile, in Metro Manila, the national weather bureau predicted a 40掳C heat index from Quezon City to Pasay City.

鈥淒uring our time, you had trees, you had environments like parks. That kept the temperature livable. But now, we live in a concrete jungle,鈥� Concepcion Industrial Corp. (CIC) Chairman and President Raul Joseph Concepcion told 大象传媒 in an interview.

Traditional architecture, which often utilized natural ventilation and heat-absorbing materials, has been replaced by high-density vertical living and buildings made with glass, steel, and concrete. This structural shift has changed how comfort is experienced in living spaces.

鈥淲e live in verticals. Everyone is living in condominiums,鈥� Mr. Concepcion explained. 鈥淵ou can鈥檛 open your windows anymore in some of these apartments. And so, the way we鈥檙e living, the way the houses are being built, it鈥檚 going to impact basically how the weather is affecting us.鈥�

Under these temperatures, individuals may experience heat cramps, heat exhaustion, and even heat stroke upon continued exposure to such conditions.

More than the hazards it poses to public health, however, is how the rising heat is affecting productivity and the general economy. In a landmark study published by the听Bangko听Sentral ng Pilipinas in 2024, it was found that every degree rise in temperature is directly correlated to a small but significant drop in the overall growth of the Philippine economy.

The study, which specifically examined how temperature variations can affect the nation鈥檚 production, business operations, and price levels, found that, on average, the short-run marginal impact of a one-degree Celsius increase in the country鈥檚 annual mean temperature reduces aggregate output growth by 0.37 percentage points.

The researchers also noted that during El Ni帽o Southern Oscillation (ENSO) events, the country鈥檚 economic growth decreases by an additional 0.47 percentage points. To compare, periods of floods and storms are typically observed to cause a 0.30 percentage point drop.

鈥淭ry working without an aircon 鈥� impossible. Or even a restaurant without an air-con, or schools, hospitals, working, your sleep. If you look at why it鈥檚 a necessity, because it鈥檚 not anymore about heat. It鈥檚 not about comfort,鈥� Mr. Concepcion said. 鈥淭oday, it鈥檚 all about the well-being of people.鈥�

Cooling as an Economic Imperative

Yet, while data suggests that climate control has become a functional necessity for productivity, changing the mindset of how consumers view air-conditioning remains a challenge.

For instance, Mr. Concepcion estimates that there are over ten million air-conditioners operating in the country on a daily basis, about half of which are over five years old. This number alone costs the Philippine economy untold losses, as many households are averse to upgrading to modern inverter technology which are cheaper to run and more energy efficient.

Mr. Concepcion argues that this operational inefficiency of legacy systems is like how people treat a vintage vehicle: 鈥淭en to fifteen years ago, the design of that system is听very different听from what it is now.听It鈥檚听like buying an old car; the way you consume gas, that level, is not so efficient versus a new car today.鈥�

Energy efficiency is largely misunderstood by the populace, Mr. Concepcion noted, and older units, particularly those using fixed-speed compressors and outdated refrigerants, operate with a level of energy waste that creates a massive hidden costs compared to newer models. This is particularly significant in a time of rising electricity costs.

According to CIC鈥檚 estimates, a ten-year-old one-horsepower unit might cost approximately P137 to P140 per day to operate. In contrast, a modern inverter unit at current rates costs roughly P78 to P79 per day. By replacing an ancient unit, the annual savings can reach upwards of P15,000 鈥� effectively the price of a brand-new unit.

鈥淐onsumers still don鈥檛 understand energy ratings. How does that translate into pesos for me? Because one of the things that we鈥檝e seen is when people use their air-conditioner is they鈥檙e like, 鈥極kay, so how much is this going to cost me?鈥�. I think there鈥檚 still a stigma on air-conditioning being something expensive,鈥� Mr. Concepcion said.

Most users remain unconscious of the real costs of their cooling systems until the monthly utility bill arrives 鈥� a phenomenon Mr. Concepcion describes as 鈥渂ill shock,鈥� akin to the roaming charge surprises of early mobile phone era.

To combat this, the industry is moving toward 鈥渃ost to use鈥� metrics rather than abstract energy ratings. While electricity rates may fluctuate, efficiency remains the only controllable variable for the consumer.

鈥淕enerally, by changing your air-con, you have 40%-45% energy savings,鈥� Mr. Concepcion said.

As modern life continues to center around urban and vertical living spaces alongside climate change and rising temperatures, Filipinos can soon no longer afford to ignore the costs of the environment to their physical and economic well-being.

The next generation of intelligent cooling systems are more akin to indoor climate control, not only regulating temperature but also air quality and humidity. Sophisticated systems can now even sense the number of people in a room and adjust based on the average body heat.

Mr. Concepcion noted that they aim their products to move from manual control to a seamless, automated experience that anticipates human needs, such as gradually raising the temperature and humidity before a person wakes up to ensure they feel refreshed.

鈥淎ir-con is only one part of a total environment,鈥� Mr. Concepcion said. 鈥淚t鈥檚 not about building better air-conditioners. Our mission is about building better lives.鈥�

In tropical countries like the Philippines, where high humidity and consistently warm temperatures prevail, cooling systems are not just about comfort but also the productivity and health of those occupying the space and the management of cost to keep a system operational.

At the residential level, the most common cooling solutions are window-type air-conditioners, split-type systems, and electric fans. Window-type units remain popular due to their affordability and ease of installation, making them suitable for small rooms or apartments. However, they tend to be noisier and less energy-efficient.

On the other hand, split-type air-conditioners offer quieter operation, improved energy efficiency, and better aesthetic integration. These systems are ideal for medium to large rooms or households seeking long-term savings on electricity bills.

Meanwhile, electric fans, although limited in cooling capacity, are still widely used as supplementary solutions, especially in naturally ventilated homes.

A critical factor in residential cooling selection is energy efficiency. Technologies such as inverter air-conditioners have gained traction because they regulate compressor speed rather than cycling on and off.

According to the International Energy Agency, efficient cooling systems can significantly lower electricity demand, which is particularly important in countries where energy costs are high and power supply can be constrained. For homeowners, this translates to lower utility bills and reduced environmental impact over time.

In commercial settings, cooling requirements become more complex due to larger floor areas, higher occupant densities, and varying operational demands. Systems such as centralized air conditioning, variant refrigerant flow (VRF) systems, and chilled water systems are commonly used.

Centralized systems are effective for large buildings like malls, hotels, and office towers, as they provide uniform cooling across multiple zones. However, they require substantial upfront investment and ongoing maintenance.

VRF systems have emerged as a flexible alternative for commercial applications. These systems allow multiple indoor units to be connected to a single outdoor unit, enabling individualized temperature control in different zones. This is particularly useful in office environments, where different departments may have varying cooling needs. VRF systems are also known for their energy efficiency and scalability, making them suitable for mid-sized commercial developments.

Chilled water systems, often used in large-scale facilities such as hospitals and airports, rely on centralized chillers to cool water, which is then circulated throughout the building. While highly efficient for large loads, these systems demand significant infrastructure and technical expertise. Their suitability depends on the scale of the building and the availability of resources for installation and maintenance.

Design, Climate, Maintenance Cost

Another key consideration across both residential and commercial contexts is building design. Passive cooling strategies, such as proper insulation, shading, and natural ventilation, can significantly reduce reliance on mechanical cooling.

The United Nations Environment Programme emphasizes that integrating passive design elements can lower energy consumption by up to 40%, as observed in Dubai. For instance, orienting buildings to minimize direct sunlight exposure and using reflective roofing materials can help maintain cooler indoor temperatures.

Climate responsiveness is equally important. In humid environments, cooling systems must address not only temperature but also moisture control. Air-conditioners inherently dehumidify the air, which improves comfort and prevents mold growth.

In contrast, evaporative coolers, though energy-efficient, are less effective in high humidity regions.

Cost considerations extend beyond initial purchase price to include installation, maintenance, and operating expenses. While a cheaper unit may seem attractive upfront, it can lead to higher electricity bills and more frequent repairs. Lifecycle cost analysis is therefore essential in making informed decisions.

Businesses, in particular, must weigh capital expenditure against long-term operational savings, especially in energy intensive sectors such as retail and hospitality.

Technological advancements are also reshaping the cooling landscape. Smart air-conditioning systems, integrated with Internet of Things (IoT) platforms, allow users to monitor and control energy usage in real time. These systems can optimize performance based on occupancy patterns, further enhancing efficiency.

Additionally, the shift toward environmentally friendly refrigerants, driven by global agreements such as the Kigali Amendment to the Montreal Protocol, adopted in 2016, reflects growing awareness of the environmental impact of cooling technologies.

Selecting the right cooling solution requires a holistic approach that considers space size, usage patterns, energy efficiency, climate conditions, and budget constraints.

For residential users, the decision often balances affordability with comfort and efficiency. For commercial operators, scalability, reliability, and long-term cost savings are paramount. By aligning these factors with appropriate technologies, both households and businesses can achieve effective and sustainable cooling. 鈥� Krystal Anjela H. Gamboa

According to the International Renewable Energy Agency (IRENA), heating and cooling make up about half of global final energy consumption and more than 40% of energy-related carbon dioxide emissions.

In response, developers and engineers are refining cooling technologies that use energy more efficiently without compromising performance. Instead of running at full capacity, systems adjust in real time, which reduce unnecessary energy use.

Changing Energy Use Patterns

Smart cooling systems use adaptive technologies to regulate cooling output with more precision than conventional setups. They adjust based on environmental factors, trimming excess cooling that often goes unnoticed in traditional systems.

According to Development Asia, Asian Development Bank鈥檚 knowledge collaboration platform, advanced air-conditioning systems combined with demand-side management can cut energy use by 25% to 45% in buildings. Variable-speed compressors and pumps allow equipment to听operate听below full capacity when demand drops. Zoned cooling, meanwhile, directs airflow only to occupied areas and听avoiding听the听common practice听of cooling empty spaces.

Sensors track temperature, humidity, and air quality, which feed information into control systems that respond without manual input. As a result, individuals can set schedules or rely on automated adjustments. They can also听monitor听and听control from听off-site locations via remote access.

Impact from Indoor to Environment

Cooling systems further address concerns tied to indoor environments. Traditional air-conditioning units often circulate air without sufficient filtration or ventilation. Smart cooling setups, by contrast, integrate improved filtration and airflow management. This method reduces indoor pollutants and may limit the spread of airborne contaminants.

Meanwhile, the World Intellectual Property Organization said the shift to climate-friendly refrigerants reduces environmental impact. New technologies with low global warming potential replace older chemicals that contribute to climate change.

Integration with Renewable Energy

Smart cooling systems increasingly work alongside renewable energy sources. Solar photovoltaic panels can offset electricity used for cooling, which may reduce dependence on fossil fuels.

According to a study published in peer-reviewed journal Cleaner Energy Systems, installing 368 solar panels could supply the full electricity demand of the cooling system during peak periods. This setup could reduce carbon dioxide emissions by about 14 tons per year, based on typical grid emission factors.

IRENA added that thermal energy storage can increase the share of cooling demand met by solar energy by 55% to 70%. Waste heat recovery systems have cut industrial energy use by up to 12% in some facilities, while natural cooling solutions, such as deep lake water systems, have reduced electricity consumption in large urban areas.

Researchers and industry groups say cooling systems must evolve alongside rising demand. As demand rises worldwide, these technologies may help lower emissions and reduce strain on energy systems to support a more sustainable progress. 鈥� Mhicole A. Moral

This decade 鈥� starting with the COVID-19 pandemic, the Russia-Ukraine war, the United States鈥� erratic tariff changes, and now the conflict around the Strait of Hormuz 鈥� has put the stability of that era into question.

The International Monetary Fund (IMF) reports that about 25% to 30% of global oil and 20% of liquefied natural gas pass through the Strait of Hormuz. The resulting disruption has seen parts of Asia, Europe, and Africa struggle with accessing the daily necessities for modern life, even at inflated prices.

鈥淧arts of the Middle East, Africa, Asia-Pacific, and Latin America face the added strain of higher food and fertilizer prices, and tighter financial conditions. Low-income countries are especially at risk of food insecurity; some may need more external support 鈥� even as such assistance has been declining,鈥� the IMF said.

The situation offers no acceptable alternatives. With the Gulf blocked, freight must sail around the Cape of Good Hope. For a standard Asia-to-Europe voyage, this rerouting adds as many as 14 days of transit and as much as 40% increase in fuel consumption.

In the organization鈥檚 World Economic Outlook published this April, the IMF projected global headline inflation to rise 鈥渕odestly鈥� in 2026 before resuming its decline in 2027, assuming the current conflict remains constrained in scope and duration.

鈥淪lowdown in growth and increase in inflation are expected to be particularly pronounced in emerging market and developing economies,鈥� the report said. 鈥淒ownside risks dominate the outlook.鈥�

The International Energy Agency (IEA) characterized the current situation as the 鈥渓argest supply disruption in the history of the global oil market.鈥� Brent crude, which began the year at a stable $65, skyrocketed to around $120 in March and has settled around $100 to $110 per barrel.

This has created acute pressure in energy-dependent industries and markets unheard of in recent history. For instance, refined fuel markets like jet fuel have seen prices decoupled from crude. In Singapore, jet fuel has jumped 140% to about $230 per barrel, while European jet fuel traded at nearly double the price of crude, reflecting severe supply shortages.

Manufacturing is also being heavily impacted, as the crisis has constrained the supply of helium, an element crucial for semiconductor manufacturing. According to an article published by the World Economic Forum, the war has already taken roughly one-third of the world鈥檚 helium supply off the market, following a disruption at the massive Ras Laffan energy hub.

Yet, one of the biggest shocks resulting from the crisis is that experienced by the agriculture sector. The Gulf is a global supplier of ammonia and urea, and as much as 30% of the world鈥檚 fertilizers pass through the Strait of Hormuz, according to the UN Food and Agriculture Organization. Prices for urea have already increased by more than 30%.

A Strategic Reset for Businesses

Emerging economies like the Philippines are disproportionately at risk. Many countries in Asia rely on the Middle East for its crude imports, fertilizer, and manufacturing components.

鈥淧eople in low-income developing countries are most at risk when prices rise because food accounts for about 43% of consumption on average, compared with 25% in emerging market economies and 12% in advanced economies,鈥� the IMF said. 鈥淭hat makes any spike in fertilizer and food prices not just an economic problem but a socio-political one, especially where fiscal resources to cushion the blow are limited.鈥�

For Philippine companies and regional players, this moment demands a reevaluation of former strategies to create new ones that reprioritize risk management while sustaining growth amid uncertainty.

For many corporate boardrooms, the 鈥淛ust-in-Time鈥� philosophy of trade logistics 鈥� the hallmark of 20th-century efficiency 鈥� has been discarded as a dangerous liability. Thomson Reuters Institute found in their 2026 Global Trade Report that 68% of trade professionals now rank supply chain reliability as their top strategic priority, almost double from 35% just a year ago.

Companies are now aggressively building stock of critical components by as much as three to six months in advance in warehouses, as opposed to keeping their inventory moving. Guaranteed availability is becoming more appealing than lower storage costs.

Because the volatility of fuel and war-risk insurance for transits near high-risk areas, the traditional annual freight contracts have also become obsolete. In its place, companies have developed a system of dynamic indexing, recalculating freight rates every 15 days, tied to real-time bunker fuel indices and artificial intelligence-driven risk assessments.

Meanwhile, the reliance on long, vulnerable maritime routes has led to a massive geographic reallocation of capital. Companies are now explicitly accepting a 15%-20% increase in unit costs in exchange for the security premium of 鈥渘ear-shoring鈥� or 鈥渇riendshoring鈥� in a politically aligned, geographically accessible neighbor like Mexico, Vietnam, and Poland.

For the best possible results, however, the IMF advised both public and private sectors work together to find solutions to the current crisis.

鈥淪uch complex spillovers confront us at a time when many economies have limited room to absorb shocks. Many countries were already facing record-high debt levels, raising concerns about fiscal sustainability,鈥� the organization said.

鈥淭o manage the shock and maintain resilience, it is therefore more important than ever that countries adopt appropriate policies. Measures need to be carefully calibrated to country-specific needs. Countries with limited reserves and little fiscal room to maneuver should be especially cautious.鈥�

The world is rapidly undergoing a geopolitical and economic reconfiguration, the likes of which has not been seen since the Cold War. Such a transformation will be painful, expensive, and chaotic. But for the resilient, it offers a chance to build a more robust, if more expensive, world. 鈥� Bjorn Biel M. Beltran

Recent tensions in the Middle East show how fast conflict can affect shipping lanes and energy flows. Traffic through the Strait of Hormuz fell after military strikes hit parts of the region.

The waterway serves as a key passage linking Gulf producers to buyers across the world. A large share of exports from the Gulf Cooperation Council (GCC) consists of crude oil, refined products, and gas. These shipments account for more than 60% of GCC exports and about 25% of global energy trade.

During the 2023 to 2024 disruption period, freight rates climbed sharply at certain points, rising as much as eight times their usual levels. The increase came as available vessel space听tightened听and companies rerouted cargo to avoid high-risk areas.

The Suez Canal saw its own share of disruption during periods of unrest. The canal handles more than 50% of global container shipping capacity, making it one of the busiest trade corridors in the world. When security risks increased, major shipping companies reduced or paused their sailings through the route.

Higher freight rates and longer delivery times ripple through supply chains. Over time, those costs can appear in the prices that consumers pay.

Pressures Amid Conflict

A report from Oxford Economics shows how conflict places听logistics听systems under stress, especially when key facilities that support oil, gas and industrial production are affected. Ports, processing听plants听and export terminals depend on coordinated shipping routes, specialized听vessels听and large-scale transport systems. When these are disrupted, the impact spreads quickly across supply chains.

When facilities are damaged, reconstruction work competes directly with commercial shipping, especially in sectors tied to heavy industry. Moving large equipment and materials has become more difficult as transport resources are redirected to rebuilding damaged infrastructure. Delays have become more common as supply chains struggle to balance both needs.

Estimates from Oslo-based energy intelligence company Rystad Energy place repair costs for energy infrastructure at $34 billion to $58 billion. Oil and gas facilities account for up to $50 billion of that amount, while non-hydrocarbon infrastructure such as power stations, steel plants and desalination facilities make up about $8 billion.

The effects, meanwhile, are not limited to reconstruction costs. Shipping delays, contractor听shortages听and bottlenecks in听logistics听networks are slowing project timelines. Many contractors and fabrication yards needed for repairs are already tied to liquefied natural gas and offshore projects approved since 2023, which limits how fast damaged facilities can be restored.

Karen听Satwani, a senior analyst for supply chain research at Rystad Energy, said repair work redirects existing industrial capacity instead of adding new supply.

鈥淩epair work does not create new听capacity,听it redirects existing capacity, and that redirection will be felt in project delays and inflation far beyond the Middle East,鈥� she said in a statement. 鈥淭he $58-billion bill is the headline, but the knock-on effects on energy investment timelines globally may prove just as significant.鈥�

A report published by the Journal of Petroleum Technology said capital diverted toward reconstruction reduces resources available for new projects. That constraint delays timelines and may slow the pace at which new energy supply enters the market in multiple regions.

Air freight is facing similar challenges. Restrictions in Gulf airspace have reduced available capacity, affecting major carriers such as Emirates, Qatar Airways and Etihad Airways. Together, these airlines account for about 13% of global air freight capacity and听roughly one-quarter听of China-Europe air cargo flows. Reduced access to this airspace disrupts established routes and adds pressure听on听remaining capacity.

High-value goods such as electronics,听pharmaceuticals听and perishable items are among the most affected. These products rely on fast and predictable air transport, making them more sensitive to delays and route changes.

Furthermore, oil prices are expected to spike as conflict persists. Fuel accounts for about 30% to 40% of vessel听operating听expenses, meaning any sustained increase in oil prices feeds directly into shipping costs. Even without further disruptions, higher fuel costs alone can raise the price of moving goods across global routes.

Higher energy prices also tend to reach businesses and consumers faster than changes in shipping costs. Freight-related inflation often peaks about 12 months after the initial disruption, as higher transport costs move through supply chains.

On the other hand, war-risk insurance premiums have increased as insurers adjust coverage for vessels听operating听in high-risk areas. At the same time, the number of available tankers has declined, leading to tighter competition for shipping capacity. Freight costs have moved higher as a result.

Rethinking Global Trade and Logistics

Governments often respond to conflict by imposing tariffs, quotas, or embargoes, according to the Oxford University College of Procurement and Supply. These measures aim to protect domestic industries or apply political pressure, but they also alter how markets听operate.

Higher import costs can also reduce demand for foreign goods and push companies to look for local suppliers. Such a shift may help domestic producers, but it can raise production costs or limit available supply when local capacity falls short.

Likewise, trade agreements and alliances can ease some of this pressure. In stable regions, these arrangements lower barriers and improve access to goods, which helps companies expand supply while managing costs.

However, when alliances weaken or agreements collapse, the benefits can quickly reverse.听Logistics听planners then face tighter restrictions, added documentation, and longer transit times. The pace of these changes leaves little time for gradual adjustment, which can disrupt supply chains that depend on steady and predictable flows.

Companies often operate within national and international law, but compliance does not always settle questions about responsibility. The absence of formal sanctions in some conflicts can make decision-making more difficult, according to the Institute for Human Rights and Business.

For instance, during Russia鈥檚 invasion of Ukraine in 2022, some companies chose to halt operations. In other conflict zones, similar actions have not always taken place.

Businesses are advised to assess whether their activities could be linked to harm, even if they are not directly involved. This process becomes more needed in global supply chains that span multiple countries and include many intermediaries. 鈥� Mhicole A. Moral

Despite notable progress in connectivity over the past decade, the Philippines continues to contend with a highly digital population coexisting with uneven, often unreliable internet infrastructure.

The Philippines has made significant strides in internet adoption. According to a report by DataReportal and Statista, internet penetration reached approximately 83% to 89% of the population, translating to tens of millions of active users, as of the past two years. This widespread usage reflects the country鈥檚 deep integration into the digital economy, where online platforms underpin communication, commerce, and entertainment.

However, penetration alone obscures critical inequalities. Around 16% of Filipinos (roughly 18 to 19 million people) remain offline, largely due to affordability constraints and lack of infrastructure. Moreover, connectivity is heavily skewed toward mobile usage, with the majority accessing the internet through smartphones rather than fixed broadband.

While mobile access has democratized connectivity, it often comes at the cost of stability and speed.

Fixed broadband, which typically delivers more reliable and faster connections, remains limited. According to World Bank, only about 28% of households had access to fixed broadband as of 2023, significantly lower than regional peers such as Vietnam or Thailand. This disparity is particularly evident in rural and geographically isolated areas where infrastructure deployment is both technically challenging and economically prohibitive.

The Philippines faces inherent logistical barriers in laying fiber-optic cables and connectivity landscape where urban centers like Metro Manila enjoy relatively high speeds (averaging over 90 Mbps for fixed broadband) while many provinces lag.

The Digital Divide

The issue of internet access reflects and reinforces broader inequalities. Data from World Bank shows that broadband access has grown much faster among wealthier households than poorer ones, with the gap widening significantly between 2019 and 2022.

This divergence has profound implications. In education, students without reliable internet are excluded from digital learning platforms. In commerce, small enterprises in underserved areas struggle to听participate听in e-commerce ecosystems. In governance, citizens without connectivity face barriers to accessing digital public services.

Even where connectivity exists, quality听remains听inconsistent. Average speeds have improved, reaching around 150 Mbps in recent estimates, but reliability and latency issues persist, particularly in congested or underserved networks.

The result is a layered inequality 鈥� access does not necessarily guarantee meaningful or productive use.

National Fiber Backbone

The centerpiece of the current administration鈥檚 digital strategy is the National Fiber Backbone (NFB) project, managed by the Department of Information and Communications Technology (DICT).

For decades, the Philippines was one of the few countries without a government-owned fiber backbone, leaving the state reliant on private corporations for its own data needs. By mid-2026, the NFB has completed its third phase, stretching thousands of kilometers from the northern tip of Luzon down to the southernmost of Mindanao.听

This infrastructure functions as a digital superhighway, allowing the government to provide high-capacity bandwidth to local government units and public institutions.听

The NFB then serves a strategic economic purpose: by听providing听a government-owned alternative, the DICT has effectively lowered the听barrier听entry for smaller, third-party internet service providers.

Government and Policy Interventions

Recognizing these challenges, the Philippine government has undertaken several initiatives. One of the most prominent is the Free Internet Access in Public Places Act (Republic Act 10929), which seeks to provide free Wi-Fi in听schools听government offices, transport hubs, and other public spaces.

In parallel, infrastructure expansion has accelerated. Data from World Bank states that the number of telecommunications towers nearly doubled from 17,850 in 2020 to over 35,000 in 2023, improving both coverage and network capacity.

Programs led by the DICT have prioritized underserved regions, gradually increasing household internet access even in historically disconnected areas.

Policy reform has also been a focal point. The passage of the Konektadong Pinoy Act in 2025 represents a significant shift toward liberalizing the telecommunications sector. By lowering barriers to entry and encouraging new market players, the law aims to stimulate competition, reduce costs, and improve service quality.

Additionally, partnerships with international institutions such as the World Bank have supported broader digital transformation efforts. These include initiatives to modernize regulatory frameworks, expand broadband infrastructure, and enhance digital skills across the population.

Private Sector and Technological Innovations

Major telecommunications providers continue to invest in fiber-optic networks, with millions of subscribers now connected through fiber broadband services. These investments are concentrated in urban and peri-urban areas, where demand is highest and returns are more predictable.

Emerging technologies are also reshaping the connectivity landscape. The entry of Starlink and other Low Earth Orbit (LEO) satellite providers has fundamentally altered the connectivity map of the Philippines.

Unlike older, high-orbit satellites that suffered from crippling latency, LEO satellites, orbiting much closer to the Earth, provide higher speeds.

Meanwhile, the proliferation of community-based Wi-Fi systems such as pay-per-use hotspots demonstrates grassroots innovation in addressing access gaps, particularly in rural areas.

However, these solutions are not without challenges. Issues of affordability, cybersecurity, and regulatory oversight remain significant. For instance, while public Wi-Fi expands access, it also raises concerns about data privacy and network security, especially in poorly regulated environments.

Towards Inclusivity and Reliability

The push for universal internet access is not a mere technical endeavor, it is a catalyst for profound socioeconomic transformation. With high-speed internet reaching the provinces, we are witnessing a 鈥渞everse migration鈥� where digital professionals no longer feel the need to crowd into Metro Manila.

The Philippine gig economy has matured, and provincial digital hubs are sprouting, allowing residents to work for global companies while staying in their hometowns.

This decentralization of the economy is crucial for the long-term sustainability of the nation, as it eases the pressure on urban infrastructure.

Education and governance are also being reimagined. The E-Government initiative has moved from a concept to a reality, with most transactions (from business permits to social security claims) now being processed through a unified digital portal.

The digital divide is also being bridged through hybrid learning modules that allow students in remote areas to access the same high-quality resources.

While there is still a long road ahead to achieve total digital equity, the foundations laid suggest that the Philippines is not just catching up to the world. It starts building a digital future that is uniquely its own. 鈥� Krystal Anjela H. Gamboa

When a spark struck in the oil-rich corridors of the Middle East, specifically the intensifying conflict surrounding the Strait of Hormuz, the heat is felt almost instantly in the Philippines.

The Philippines, structurally dependent on imported energy where nearly 95% of oil is imported, finds itself particularly exposed: what begins as a geopolitical rupture transforms into a domestic economic condition, altering not just prices but patterns of living, consumption, and even social perception.

For a Filipino consumer, the geopolitical tremor manifests as a fuel shock. As of this April, crude has surged at almost $100 per barrel, with analysts from听International听Energy Agency (IEA) warning of a climb听toward听$150. This translates听almost mechanically听into higher fuel costs, a widening import bill, and immediate inflationary pressures.

The transmission mechanism from oil shock to consumer experience is neither linear nor purely economic. It unfolds in layers.

For instance, when the Land Transportation Franchising and Regulatory Board (LTFRB) adjusted minimum fares to P14 and P17 to modern units this year, it did more than increase a听commute鈥檚听cost 鈥� it altered the urban ritual.

A certain precarity听rises:听for the worker, the extra few pesos per ride听represents听a slow erosion of the social buffer 鈥� the small margin of income that allows for a life beyond survival.

When movement becomes expensive, the city itself begins to shrink. People stay closer to home, social circles tighten, and the activities that fuel culture (e.g., dining out, family visits, or exploring new spaces) are the first to be sacrificed.

The consumer market, once animated by upward mobility, shifts toward caution and preservation. This uncertainty is amplified by the structural vulnerabilities of the national economy. In worst-case scenarios, where oil prices surge dramatically and remain elevated, inflation could spike to levels that significantly erode听purchasing听power and destabilize growth projections.

Already, institutions have begun revisiting outlooks downward, noting that energy shocks could weaken both consumption and investment.

The metro, once a sprawling map of opportunity, becomes a series of high-cost hurdles.

From the Pump to the Plate

In March 2026, Philippine inflation breached the target of the Bangko Sentral ng Pilipinas (BSP), hitting 4.1%. at the same time, the Department of Trade and Industry (DTI) has attempted to freeze prices for basic commodities until mid-May, making the underlying pressure undeniable.

When the price of rice or vegetables climbs because the trucks carrying them are burning expensive diesel, the burden falls on the bottom 30% income households, the lowest earning families. This cascading effect 鈥� what economists often describe as 鈥渟econd-round inflation鈥� 鈥� begins to shape the broader consumer price environment.

For these families, inflation is not a mere percentage, but a choice between nutrition and education, or between health and debt.

This reflects a certain shift in consumption: instead of buying for the future, households are forced into a hyper-present state, where every peso is scrutinized for its immediate utility. This survival mindset, while necessary, prevents long-term social mobility. It traps the consumer in a cycle of reacting to global shocks rather than planning for local growth.

The 鈥楢lternative鈥� Problem

Interestingly, the crisis also exposes the limits of substitution. While there is increasing discourse around renewable energy and alternatives, these remain structurally insufficient in the short term. Petroleum still dominates the Philippines鈥� energy mix and alternatives account only for a fraction of total consumption.

This dependency constrains policy options and ensures that global oil dynamics continue to exert a strong influence on domestic markets.

Government responses, such as subsidies, tax adjustments, or monetary policy interventions, can mitigate some of the immediate pain. However, they often function as buffers needing further action.

In the end, the impact of the Middle East conflict on Philippine consumer markets is not just about higher prices. It is about the reconfiguration of everyday life under conditions of external uncertainty. 鈥� Krystal Anjela H. Gamboa

The Philippines is becoming an attractive destination for the renewable energy industry, largely due to its market policies and structure that have led to sizeable investments. So much so, in fact, that the country has placed no lower than fourth in the research firm Bloomberg NEF鈥檚 Climatescope rankings over the past three years. According to the firm, the Philippines ranks fourth among emerging markets and second in the Asia-Pacific region with a power score of 2.64.

Central to the market policies and structure that has led to the achievement is the Department of Energy鈥檚 (DoE) Philippine Energy Plan (PEP) 2023-2050, which 鈥渙utlines the straightforward path for the energy sector to realize the envisioned Clean Energy Scenario.鈥� The plan aims to achieve over 40% renewable energy in the total energy mix by 2030 and surpass 50% by 2040, while also incorporating nuclear energy and gradually reducing reliance on fossil fuels.

Currently, the country鈥檚 power mix is dominated by coal, which is responsible for nearly 60% of the energy generated in the Philippines, followed by natural gas at 18%, geothermal at 10%, hydro at 8%, and other energy sources making up the rest of the mix.

Against this policy backdrop, energy developers are recalibrating their portfolios to align with the country鈥檚 transition goals.

Meralco PowerGen Corp. (MGEN), for its part, is positioning itself as a diversified player across both conventional and renewable energy sources.

鈥淢GEN is not approaching the energy transition as a shift away from one fuel type to another. It is positioning itself as a diversified, future-ready energy power generator that can support the country鈥檚 evolving energy needs across multiple technologies. Its portfolio of 5,069.7 MW reflects that balance,鈥� the company said.

To move from targets to tangible outcomes, the government has introduced a range of policy mechanisms designed to attract investment while ensuring system stability. Chief among these is the Green Energy Auction Program (GEAP), which provides a transparent and competitive framework for听procuring听renewable capacity.

While these mechanisms have helped unlock investments, industry players note that the effectiveness of such policies听ultimately hinges听on how consistently and transparently they are implemented.

鈥淩ecent policy reforms and stricter enforcement mechanisms have both positive and challenging implications for investor confidence,鈥� MGEN added. 鈥淥n the positive side, stronger enforcement improves market discipline by ensuring that only viable and committed projects proceed, which benefits developers like us at MGEN.鈥�

GEAP鈥檚 Next Round

After the GEAP鈥檚 successful first round of auction in 2022, the program is now in its fifth edition, with the DoE gearing up for the competitive auction of large-scale offshore wind projects in August. The program is currently undergoing pre-bid evaluations, pre-bid conferences, and other pre-auction activities until Aug. 26, ahead of the auction proper on Aug. 27.

For this edition, the DoE is offering up to 3,300 megawatts of fixed-bottom offshore wind capacity, targeted for delivery between 2028 and 2030. Winning bidders are expected to be announced by Sept. 23, while certificates of award are set to be issued in February 2027.

The gradual lean towards the use of offshore wind development is mirrored by increasing activity across what the DoE has in their renewable energy pipeline. Recent developments show five renewable energy projects with a combined capacity of more than 500 megawatts (MW) have been cleared to proceed to the next stage of technical evaluation.听

According to the DoE, these projects have been granted endorsements to undergo a system impact study (SIS) with the National Grid Corp. of the Philippines (NGCP). The SIS is a necessary step for every renewable energy project in development, as it determines whether the existing grid infrastructure can accommodate additional capacity without compromising the system or leading to more red and yellow grid alerts.

Among the projects endorsed is the 200-MW Abra-Kalinga wind power project of JBD Water Power, Inc., which goes to show the continued investor interest in onshore wind development.

Freya Renewables Inc. has also proposed a 160-MW wind farm in Negros Occidental, while Amihan Power, Inc. is planning an 80-MW wind project in Camarines Sur, which further signals the archipelagic spread of wind investments across the country.

Despite the abundance of it, the pipeline is not limited to wind energy. Energy Development Corp. is advancing the 30-MW Botong-Rangas geothermal project in Sorsogon, potentially adding to the country鈥檚 largest resource of renewable energy. Meanwhile, PAVI Green Camsur Renewable Energy, Inc. is developing a 50-MW solar project in Camarines Sur, showing the continued expansion of solar capacity driven by better funding and shorter construction timelines.

Integrating New Generation

However, as more renewable projects move forward, attention is increasingly turning to the grid鈥檚 capacity to support and efficiently integrate new听generation.

鈥淭he country鈥檚 power grid is one of the most important enabling factors 鈥� and at the same time one of the most practical constraints 鈥� on the accelerated growth of renewable energy in the Philippines. Continued investment in transmission infrastructure and the integration of technologies such as energy storage systems will play key roles in strengthening system resilience,鈥� MGEN said.

An example that the company cited is its very own MTerra Solar, which has recently been energized with up to 250 MW of solar generation capacity and 450 MWh of battery energy storage system (BESS) 鈥� the largest integrated installations of its kind in the country to date.

More Selective Approach

At the same time, the government has taken a firmer stance on ensuring that only viable and compliant projects remain in the pipeline. In 2025 alone, the DoE revoked 84 renewable energy service contracts, equivalent to an estimated 5,372.209 MW of potential capacity that had previously been factored into national energy plans.

The move follows a comprehensive technical and legal review that found multiple projects in violation of their contractual obligations. These violations ranged from failure to deliver on committed work programs to noncompliance with the terms of reference under the GEAP, as well as broader breaches of DoE standards.

The termination of an听additional听eight contracts this year underscores the agency鈥檚 intensified efforts to weed out inactive or underperforming developers.

While the revocations may appear to reduce the headline capacity in the short term, they also serve a strategic purpose as the DoE is effectively making room for more capable developers to step in and potentially accelerate the realization of power capacity.

The government鈥檚 stricter stance reflects a broader shift toward prioritizing project viability, though it also raises questions about how to balance efficiency with inclusive growth.

鈥淎 more selective approach can help improve system outcomes by prioritizing well-structured, bankable, and听execution-ready. It also helps ensure that projects moving forward are aligned with grid readiness, demand growth, and long-term system requirements,鈥� MGEN said.

As the country pushes forward, ensuring that regulatory processes and developer performance keep pace with policy ambition will be key to sustaining momentum. If these elements align, the Philippines stands a strong chance of translating its renewable energy targets into a tagline as one of the region鈥檚 most dynamic clean energy markets.

鈥淐ontinued investment in grid expansion, modernization, and energy storage will also be critical to enabling higher renewable energy penetration. In this regard, MGEN 鈥� through its diversified portfolio of thermal, LNG, and renewable assets 鈥� is well positioned to help accelerate the country鈥檚 transition toward a more sustainable energy future,鈥� MGEN concluded.

In recent years, the convergence of policy reforms, investor interest, and climate commitments has positioned renewable energy PPPs as critical pillars of the country鈥檚 development strategy.

A key indicator of this momentum is the rapid expansion of the PPP project pipeline. As of late 2025, the Philippines had 251 PPP projects worth听approximately P2.81 trillion, reflecting a significant increase driven by reforms aimed at transparency and efficiency. Within this pipeline, energy and climate-related projects are gaining prominence, particularly those aligned with renewable generation and sustainable infrastructure.

The government鈥檚 broader infrastructure flagship program also incorporates PPP financing for major initiatives, signaling institutional commitment to private sector participation in energy transition efforts.

Renewable-oriented PPPs are diverse in scope, spanning solar, wind, waste-to-energy (WtE), and emerging technologies such as green hydrogen. For instance, large-scale solar developments, such as a planned 500-megawatt solar farm in Nueva Ecija, demonstrate how private firms are partnering with government frameworks to expand clean energy capacity and stabilize supply in the Luzon grid.

Similarly, wind energy projects like the Kalayaan 2 Wind Power Project are being fast-tracked under PPP-linked initiatives, reinforcing the role of private investment in diversifying the country鈥檚 energy mix.

One of the most innovative developments is the emergence of WtE PPP projects. The proposed 3,000 tons per-day Manila Waste-to-Energy Facility exemplifies how PPPs are being leveraged to address both environmental and energy challenges simultaneously, converting municipal solid waste into electricity while reducing landfill dependence.

These hybrid infrastructure models reflect a broader shift toward circular economy principles within the PPP framework.

Beyond conventional renewables, PPPs are also enabling next-generation energy systems.听The听Renewstable听Green Hydrogen Power Plant in Marinduque, for example, integrates solar generation with hydrogen and battery storage to deliver stable, dispatchable renewable energy. This aligns with the government鈥檚 Smart and Green Grid Plan, which is expected to be听largely financed听through PPP arrangements and aims to modernize grid infrastructure to accommodate intermittent renewable sources.听听

Policy and regulatory support have been crucial in sustaining this push. The Philippine government has introduced reforms to streamline PPP approvals, improve project preparation, and enhance investor confidence.

Additionally, the liberalization of the renewable energy sector, including allowing full foreign ownership, has significantly expanded the pool of potential investors and partners. This has been complemented by mechanisms such as the Green Energy Auction Program, which is expected to drive up to P25 trillion in renewable energy investments over the next decade.

Importantly, PPPs are not limited to national-level听megaprojects. Local government units are increasingly engaging in renewable and sustainability-focused PPPs, supported by capacity-building initiatives from the PPP Center. Projects such as localized听WtE听facilities and small-scale renewable installations听demonstrate听how PPPs can be adapted to community-level needs while contributing to national energy goals.

Despite these advances, challenges听remain:听renewable energy PPPs often involve complex risk allocation, particularly in relation to demand uncertainty, regulatory stability, and technological integration. Moreover, grid constraints and听permitting听bottlenecks can delay project implementation. Addressing these issues will require continued institutional strengthening, clearer policy signals, and enhanced coordination across agencies and stakeholders.

With a robust pipeline, supportive policy environment, and growing investor interest, renewable PPPs are poised to play a definitive role in shaping a more sustainable and resilient energy future for the Philippines. 鈥� Krystal Anjela H. Gamboa

From April 9-12, the MIAS reverts back to the two-venue format as the halls of the World Trade Center Metro Manila and the Philippine Trade Training Center will once again transform into a dynamic arena where innovation, sustainability, and shifting consumer preferences come together. With over 170,900 visitors expected, 145 exhibitors, and more than 310 vehicles on display across a sprawling 33,000 square meters, MIAS 2026 is poised to be one of the most important editions yet.

For longtime observers,听the evolution听has become clearer. What began years ago as a celebration of sedans and combustion engines has steadily become a platform for more sustainable and smarter options, such as electrification and intelligent mobility. These changes reflect a Philippine market with a growing appetite for cleaner, smarter, and more versatile vehicles, and MIAS has become one of the clearest ways to understand that shift.

One of the biggest highlights this year is the wave of major vehicle launches, many of which signal a strong move toward electrified and technology-driven mobility. Leading the charge is the China-based GAC Motor, whose Philippine arm promises a double reveal that could redefine its presence in the local market. By introducing two brand-new models at once, GAC is expanding its lineup while also showing confidence in the growing demand for modern mobility solutions among Filipino buyers.

Another highly anticipated debut comes from another China-based manufacturer, Changan Automobile, which is preparing to unveil a new model positioned as a breakthrough in mobility. While full details remain under wraps, early messaging suggests a vehicle that blends design, performance, and advanced features in a way that appeals to a new generation of drivers.

The shift toward electrification becomes even more听evident听with the South Korea-based Kia, which will introduce the much-awaited EV5. This launch highlights how electric vehicles (EVs) are becoming more relevant in the Philippine market. Kia鈥檚 move signals that EV adoption is something that is steadily becoming part of everyday driving,听perhaps accelerated听by the increasing costs of gas and diesel.

Electric innovation continues with BYD Auto, a global leader in EV development. Its showcase at MIAS 2026 is expected to feature new electric models along with the technologies that support them, including battery systems and energy efficiency solutions. BYD鈥檚 presence reinforces the idea that the future of mobility in the Philippines will increasingly rely on electric power.

Alongside BYD, manufacturer Geely Auto is set to present an expanded lineup of EVs. Known for integrating advanced technology into accessible models, Geely is likely to emphasize connectivity, intelligent features, and energy efficiency.

Meanwhile, luxury and advanced technology come together at the booth of AITO, a brand that is gaining attention for its focus on intelligent premium vehicles. At MIAS 2026, AITO aims to听demonstrate听how modern luxury now includes smart systems, seamless connectivity, and user-focused design.

Conversely, BAIC Group will bring a different kind of excitement by听showcasing听new pickup trucks and rugged vehicles. These models highlight strength and durability, qualities that听remain听important, and even fashionable, for many Filipino drivers. While electrification is gaining ground, there is still strong demand for vehicles that can handle both urban roads and more challenging environments.

Newer Asian brands are also making their mark. Deepal will debut models that reflect a fresh approach to sustainable mobility and modern design. Meanwhile, Bestune will showcase compact and efficient vehicles suited for city driving, offering practical solutions for increasingly busy urban areas.

Adding to the excitement is the debut of the ROX Motor鈥檚 ROC Adamas, a model that promises a unique driving experience. Its exclusive appearance at MIAS makes it one of the most intriguing attractions for visitors looking to discover something new.

212 Motor will also introduce models designed for adventure and exploration. These vehicles combine rugged styling with modern engineering, appealing to drivers who seek both performance and character. Another key participant is Great Wall Motor (GWM), which arrives with a clear vision centered on offering multiple powertrain options for different users.

Beyond the vehicle launches, MIAS 2026 offers a wide range of activities that enrich the overall experience. The event includes technical seminars, interactive brand programs, and livestream sessions that allow visitors to engage more deeply with the automotive world. These activities create opportunities for both industry professionals and everyday enthusiasts to learn and connect.

Car club displays add another layer of excitement,听showcasing听communities built around shared passion for听different brands. Interactive programs hosted by companies such as MG provide hands-on experiences that bring听new technologies听closer to the public. Additionally, Hot Wheels鈥� 鈥淒riven听To听Be Legendary鈥� media launch can even bring out the inner child of many of the event鈥檚 participants.

What makes MIAS truly significant is its ability to reflect the changing preferences of Filipino drivers. The growing presence of EVs, the focus on sustainability, and the integration of smart technologies all point to a market that is evolving quickly.

MIAS 2026 tells a story of progress and possibility that the country鈥檚 automobile industry has gone through. The future of mobility is no longer something to wait for. It has already taken shape on the show floor of the country鈥檚 most-awaited automotive event. 鈥� Jomarc Angelo M. Corpuz

In 1986, the听First-Fil RBBS听became the country鈥檚 first public-access system, followed by the Philippine听FidoNet听Exchange in 1987, which linked multiple BBS networks across Metro Manila.

Efforts to build a national academic network followed. In 1990, a government-backed committee led by Arnie del Rosario studied plans to connect universities and state institutions. The proposal did not move forward, but it laid the groundwork for later initiatives.

At 1:15 a.m. on March 29, 1994, Filipino engineer Benjamin 鈥淏enjie鈥� Tan established the country鈥檚 first direct internet connection at a network center in Makati, linking a Cisco router to a US-based provider through a 64-kilobits-per-second (Kbps) leased line.

Hours later, at 10:18 a.m., the connection was publicly confirmed during an international conference at the University of San Carlos in Cebu, where participants received the announcement: 鈥淲e鈥檙e in.鈥�

However, expansion in the mid-1990s faced constraints, including limited infrastructure and听high costs. The telecommunications sector was dominated by a single major provider, and landline penetration remained low.

Access was also concentrated in urban centers and academic institutions, while technical expertise and local digital content remained limited. Such conditions kept internet use within a narrow user base during its early years.

In the following decade, commercial services began to take shape. In 2000, PLDT introduced its Asymmetric Digital Subscriber Line, or ADSL, expanding internet availability beyond institutions.

New players entered the market over time. For instance, Converge ICT Solutions, Inc. secured a congressional franchise in 2009 to build and operate telecommunications infrastructure, later expanding its network to compete with established providers.

Mainstreaming digital life

More than three decades after the first connection, internet use now spans daily life in the Philippines. Millions rely on online platforms for communication, business transactions, education, and public services.

The 2024 National Information and Communications Technology Household Survey reported that 48.8% of households now have internet access, up from 17.7% in 2019, or around 13.56 million households.

About 67.3% of Filipinos aged 10 and above, or more than 61 million people, use the internet. Most users access the internet through mobile phones, with 98.8% relying on these devices.

Metro Manila posted the highest household connectivity rate at 68.7%, followed by Central Luzon at 61.3%. In contrast, the Bangsamoro Autonomous Region in Muslim Mindanao recorded 27.7%, while the Zamboanga Peninsula posted 21.2%.

According to DataReportal, 99.7% of the Philippines鈥� total internet user base, regardless of age, used at least one social media platform in January 2024. Among social media platforms, Facebook still had the largest number of users at 86.75 million during the same period.

Meanwhile, connectivity intelligence firm Ookla reported that median fixed broadband speeds reached about 94.42 megabits per second (Mbps) in the second quarter of 2024, up 51% from 62.51 Mbps in 2022. Mobile speeds also increased, with a median of 27.75 Mbps in early 2024.

Regions in Luzon posted the fastest fixed broadband performance in the Philippines, with the top five areas all recording download and upload speeds above 90 Mbps. Region IV-A or CALABARZON recorded the highest median fixed download speed at 99.55 Mbps, while Eastern Visayas posted the lowest at 38.43 Mbps.

Addressing internet barriers

The World Bank noted that the Philippines only recorded 28 mobile towers per 100,000 people in 2022, about one-third of the Southeast Asian average. Telecom infrastructure investment also declined from 0.64% of gross domestic product in 2018 to 0.44% in 2022.

Cost continues to limit internet access for many households. Among those without internet, 58.3% cited high subscription fees as the main reason, while 41.7% pointed to both service and equipment costs.

Although average monthly spending dropped to P1,069.10 in 2024 from P1,280.59 in 2019, broadband听remains听expensive听relative听to income. Fixed broadband costs account for about 11% of per capita gross national income, about twice the Southeast Asian average.

According to the World Bank, outdated regulations听remain听a major barrier to addressing the digital divide. Laws governing telecommunications, including the 1931 Radio Control Law and the 1995 Public Telecommunications Policy Act, date back to 1931 and 1995 and have not kept pace with technological changes.

To address major internet challenges, the government has launched several initiatives, led by the Department of Information and Communications Technology (DICT). These include the National Broadband Program, the National Fiber Backbone project, the Free Wi-Fi for All听program, and the Common Tower initiative.

The Marcos administration has also unveiled a P6-trillion National Digital Connectivity Plan aimed at accelerating internet expansion and improving service quality. The plan focuses on four pillars: governance, infrastructure investment, meaningful access, and network resilience.

In a statement, DICT Secretary Henry Rhoel R. Aguda said the connectivity plan, alongside the Konektadong Pinoy initiative, aims to provide affordable and resilient connectivity for every Filipino.

鈥淐onnectivity is no longer just a tech issue, it听is an economic issue, a job issue, and an inclusion issue,鈥� Mr. Aguda said. 鈥淟et us move with urgency, let us move with purpose and let us move together so no Filipino, no matter where they live, is left behind.鈥�

President Ferdinand R. Marcos, Jr. also promised to continue pursuing reforms in the telecommunications sector so more Filipinos can access the internet.

鈥淲e have seen this progress take shape. The rollout of 5G networks, the deployment of fiber-optic cables, the growth of mobile broadband, and the rise of digital services have transformed how Filipinos communicate, how they study, do business, and engage with government,鈥� he said during his speech at the Philippine Telecom Summit 2026.

At the same time, telecommunications companies are expanding fiber networks and upgrading technologies to improve听service. Fiber deployment has increased significantly, with millions of households now within reach of fiber connections.

Fixed wireless access and satellite services are also听emerging听as alternatives, particularly in remote areas where fiber deployment is difficult due to the country鈥檚 geography of more than 7,000 islands.

Satellite internet services, including low-Earth orbit systems, have expanded, though performance and cost remain concerns compared to fixed broadband. 鈥� Mhicole A. Moral

According to the Germany-based insurance firm Allianz鈥檚 Global Insurance Report, the country鈥檚 insurance sector is poised to grow by 9.2% between 2025 and 2035, eventually amounting to more than 21 billion euros. Comparatively, the global average growth currently stands at 5.3% while in areas such as Western Europe (3.7%), North America (4.7%), and Japan (2.5%), also lag behind the country鈥檚 insurance sector.

Much of this growth can be attributed to the work of the Philippines鈥� Insurance Commission (IC). Established in 1949, the attached agency of the Department of Finance (DoF) is tasked to strengthen and regulate the Philippines鈥� pre-need companies while also implementing prudent and progressive regulatory and supervisory policies at par with international standards.

In line with this mandate, the commission鈥檚 core objectives center on advancing the insurance industry鈥檚 development, ensuring effective regulation, and protecting consumers. It aims to foster sustained growth and financial stability across insurance, pre-need, and health maintenance organizations (HMOs), while elevating the professionalism of these sectors and promoting greater public awareness and understanding. Additionally, it seeks to build a robust and reliable national insurance market and to uphold the rights and interests of policyholders, pre-need plan holders, and HMO members.

This year, the IC celebrates its 77^th year, crowned with a strong performance in 2025 as total insurance premiums topped P500 billion for the first time in the country鈥檚 history, signaling that more Filipino families and businesses are more financially literate and are protecting themselves against unfortunate circumstances.

鈥淏eyond the numbers, this milestone tells us something even more important. It reflects broader public participation and a growing awareness among Filipinos that insurance is an essential tool for financial protection. This also reaffirms the industry鈥檚 role as a cornerstone of economic resilience,鈥� Finance Secretary Frederick D. Go said in his keynote speech at the IC鈥檚 77th anniversary celebration last March 16

Building on this milestone, the industry鈥檚 expanding reach is further reflected in its growing financial strength and contribution to the broader economy. Last year, the insurance industry鈥檚 total assets had reached P2.66 trillion, with a significant portion allocated to government securities and local investments that contribute to infrastructure projects and broader national development goals.

Alongside this, the industry鈥檚 impact is also evident in the vital support it provides to healthcare access and delivery across the country. In 2025, the HMO sector disbursed P12.10 billion in healthcare benefits and claims, underscoring its ongoing role in expanding access to quality medical services for Filipinos.

Complementing these gains, the pre-need sector likewise demonstrated steady growth, further strengthening the industry鈥檚 role in long-term financial planning for Filipino families. The sector recorded total premium income of P23.94 billion in the fourth quarter of 2025, alongside 895,679 plans sold by the end of the year 鈥� reflecting its continued support in helping families plan ahead for education and memorial needs with increased assurance.

A cyber-secure commission

Another recent achievement by the IC is the bolstering of its cybersecurity capabilities along with other government-backed financial institutions. In March this year, the IC, Bureau of the Treasury (BTr), Government Service Insurance System (GSIS), Social Security System (SSS), Philippine Deposit Insurance Corp. (PDIC), and the Landbank of the Philippines (LANDBANK) signed a memorandum of agreement (MoA) on the 鈥淪hared Cyber Defense Solution for the Insurance Cluster.鈥�

The MoA is aimed at boosting each agency鈥檚 ability to detect, prevent, and respond to cyber incidents through various methods such as advanced threat monitoring, improved security analytics, and strengthened defensive controls.

鈥淭his agreement strengthens the government鈥檚 ability to protect the insurance industry from cyberattacks, ensuring that Filipinos鈥� hard-earned savings are secure. By safeguarding these critical financial resources, the government is not only protecting the stability of the insurance sector but also reinforcing public trust and confidence in the system, encouraging more Filipinos to rely on insurance as a tool for financial security,鈥� Mr. Go was quoted as saying.

Under the agreement, LANDBANK will act as the procurement agent and handle the bidding and acquisition of the cyber defense system. The participating agencies will define the technical requirements and supervise implementation through a Joint Technical Working Group. Meanwhile, an Interagency Oversight Committee, made up of chief information officers and IT security officials, will track cybersecurity developments and recommend appropriate security measures.

鈥淐ybersecurity is a critical component of institutional resilience in today鈥檚 increasingly digital environment. Through this collaboration, the Insurance Commission is strengthening its capacity to protect critical systems and safeguard sensitive information against evolving cyber threats,鈥� Insurance Commissioner Reynaldo A. Regalado said a statement.

Sustained prudence

Aside from strengthening its operational capabilities, the commission has also maintained a strong track record in financial accountability and transparency. For the year 2024, the IC received its seventh 鈥渦nmodified opinion鈥� over the last decade from the Commission on Audit (CoA).

An 鈥渦nmodified,鈥� or 鈥渦nqualified,鈥� opinion is issued when auditors determine that the financial statements are fairly presented and free from any material misstatements, whether caused by error or fraud.

鈥淚n our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Insurance Commission as at December 31, 2024, and its financial performance, cash flows, changes in net assets/equity, comparison of budget and actual amounts for the year then ended, and notes to the financial statements, in accordance with International Public Sector Accounting Standards (IPSASs),鈥� CoA State Auditor V Angelita C. Lomentigar stated in the Independent Auditor鈥檚 Report.

鈥淭his receipt of the 鈥榰nmodified opinion鈥� from the CoA reflects the Commission鈥檚 traditions of transparency, accountability, and fiscal prudence. As stewards of public funds, it is our duty to ensure that the agency鈥檚 resources are managed and spent effectively and in alignment with our regulatory priorities,鈥� Mr. Regalado said in another statement.听听

The IC鈥檚 sustained growth, strong governance, and commitment to getting better continue to reinforce the resilience of the country鈥檚 thriving insurance sector. As it moves forward, their efforts position the industry to better serve Filipinos while supporting broader economic stability and development for years to come. 鈥� Jomarc Angelo M. Corpuz

More than a year of recovery, 2025 became a period of consolidation 鈥� where gains in awareness, digitalization, and economic activity translated into measurable expansion. This performance reflects a convergence of macroeconomic recovery, regulatory support, and shifting consumer behavior. As households and businesses recalibrated their financial priorities in the aftermath of recent crises, demand for protection products strengthened across segments.

At a glance, the numbers tell a clear story: insurance is becoming more embedded in the financial lives of Filipinos, though structural gaps听remain. The result is an industry that is not only growing in听scale, but听also evolving in function.

A year for premiums

The most defining milestone of 2025 was the industry鈥檚 breach of the P500-billion mark in total premiums 鈥� a first in its history.

Data from the Insurance Commission show that total premiums reached听approximately P502.64 billion, reflecting a 14% increase from P440.53 billion in 2024.

This growth was not isolated to a single segment. Both life and non-life insurance, alongside mutual benefit associations (MBAs), contributed to the expansion. Earlier in the year, premiums had already reached P372 billion by the third quarter, indicating sustained momentum throughout 2025.

The upward trajectory reflects a broader shift: insurance is increasingly viewed not merely as a discretionary financial product but as an essential safeguard against uncertainty. Rising demand for health, life, and property protection (especially in the aftermath of the pandemic) has helped drive this expansion.

Sector breakdown

The life insurance sector remained the dominant driver of growth in 2025. By third quarter alone, life insurance premiums had increased by nearly 13.8% year-on-year, supported by both traditional and variable life products.

Non-life insurance, meanwhile, showed robust gains particularly in property and motor segments. In the first half of 2025, net premiums written in the non-life sector rose by 20.48% to P39.63 billion, reflecting increased demand for asset protection and business continuity coverage.

The health insurance segment also posted strong performance, with net income more than doubling in the first half of the year due to higher revenues. This suggests a continued shift toward health-related financial protection, a trend accelerated by recent public health challenges.

Together, these segments illustrate a diversified growth pattern 鈥� one that is not overly reliant on a single product line but instead reflects broad-based demand across risk categories.

Rising assets and financial strength

Beyond premiums, the industry鈥檚 balance sheet indicators also improved. By the end of the third quarter of 2025, total assets reached approximately P2.62 trillion, up 4.73% from the previous year.

Invested assets 鈥� critical for long-term solvency and claims-paying ability 鈥� also expanded, reaching over P2.3 trillion. These funds are typically allocated to government securities, corporate bonds, and infrastructure-linked investments, positioning the insurance sector as both a financial intermediary and a contributor to national development.

Net worth growth further reinforced industry stability, rising by over 8% year-on-year during the same period.

These indicators underscore a key point: the insurance sector鈥檚 expansion is not merely volume driven but is supported by improving financial fundamentals.

Profitability and claims

Profitability across segments also showed positive movement. In the life insurance sector, net income grew by over 12% in the first quarter of 2025, signaling improved operational efficiency and premium inflows.

At the same time, claims and benefit payouts remained substantial. Life insurers alone disbursed approximately P121.9 billion in benefits during the year, while non-life insurers paid around P34.1 billion.

This dual trend, rising profitability alongside high claims payouts, highlights the industry鈥檚 core function: absorbing risk while maintaining financial viability.

Rather than constraining growth, higher claims activity demonstrates the sector鈥檚 role as a stabilizer during times of need.

Awareness, digitalization, and risk exposure

Several factors underpinned the industry鈥檚 strong performance in 2025.

First, heightened risk awareness (particularly following the COVID-19 pandemic) continued to drive demand for life and health insurance. Consumers are increasingly prioritizing financial protection as part of long-term planning.

Second, digital transformation has improved accessibility. Insurers have expanded online distribution channels, streamlined onboarding processes, and leveraged data analytics to tailor products. These innovations have lowered entry barriers, particularly for younger and tech-savvy consumers.

Third, economic recovery and asset growth have supported demand for non-life insurance products such as motor and property coverage. As businesses expand and household asset ownership rises, so too does the need for protection.

Finally, climate-related risks have reinforced the importance of insurance. In a country highly exposed to natural disasters, insurance serves as a critical tool for resilience both at the individual and systemic levels.

Bridging the protection gap

Despite strong performance, the industry continues to face structural challenges.

Insurance penetration, while improving, remains below global averages. Only 28% of Filipinos have life insurance, with low-income, informal sectors, and remote areas remain heavily uninsured.

Affordability and financial literacy are key barriers. Many Filipinos still perceive insurance as complex or inaccessible, underscoring the need for simpler products and more effective public education.

Additionally, climate risk poses a growing challenge. As extreme weather events become more frequent, insurers must balance affordability with sustainability, ensuring that risk pricing remains viable without excluding vulnerable populations.

Regulatory oversight will also need to evolve in response to digital innovation, particularly in areas such as cybersecurity, data privacy, and emerging distribution models.

Sustaining momentum

Looking ahead, the Philippine insurance industry is positioned for continued growth, supported by favorable demographics, rising incomes, and increasing awareness of financial protection.

Projections suggest that demand will remain strong, particularly in life and health insurance. At the same time, non-life segments are expected to benefit from infrastructure development and expanding asset bases.

However, sustaining this momentum will require a dual focus: deepening market penetration while maintaining financial stability. This means expanding access to underserved sectors, enhancing product innovation, and strengthening regulatory frameworks.

Ultimately, 2025 is one of progress, but also of potential for insurance. The industry has demonstrated its capacity to grow, adapt, and deliver value. The next challenge, and an ongoing one, lies in ensuring that this growth translates into a broader, more inclusive protection for all Filipinos. 鈥� Krystal Anjela H. Gamboa

According to the Insurance Commission (IC), the sector posted total premiums above P500 billion last year, with life insurance accounting for the bulk of industry premiums. In a more interesting note, insurance density, or per capita spending, reached a record P4,385 in 2025, up from P3,894 a year earlier. This points to rising consumer participation, though coverage remains uneven across income groups. Insurance Commissioner Reynaldo A. Regalado even said the growth shows how Filipinos value 鈥渃ontinuous sense of security,鈥� prioritizing protection over discretionary spending.

Insurance penetration, or premiums as a share of gross domestic product, improved to about 1.78% to 1.79% in 2025 from 1.67% in 2024. Despite such progress, however, the IC noted that the level remains below its 2% target and lags behind many Asia-Pacific markets.

Regulators and industry players place microinsurance at the center of efforts to expand coverage, particularly among low-income households.

Under Republic Act No. 10607, microinsurance products cap premiums at 7.5% of the daily minimum wage for non-agricultural workers in Metro Manila, with benefits limited to 1,000 times the same wage.

Efforts to raise insurance participation extend beyond product design by adopting digital tools and expanding distribution channels.

The Bangko Sentral ng Pilipinas (BSP) is set to revise bancassurance guidelines to allow banks to offer insurance products from multiple providers, subject to contractual arrangements. The move aims to widen consumer access and allow insurers to reach bank clients beyond existing conglomerate structures.

Digital platforms also play a growing part in distribution. Several insurers, including AIA Philam Life, Pru Life UK, and FWD Life Insurance, have implemented AI tools for underwriting, claims processing, and customer service.

The IC also joins a government-backed initiative to launch an AI-powered complaints management system under the Internet Transactions Act. The platform allows consumers to file and track complaints through digital channels, with mandated timelines for resolution.

The Philippine Health Insurance Corp. (PhilHealth), meanwhile, is integrating AI for claims validation and fraud prevention, following a ransomware attack in 2023.

While life insurance leads the current market, the non-life segment is expected to expand amid rising climate risks.

The IC noted that natural disasters are driving demand for property and catastrophe coverage. In fact, property insurance accounts for nearly 40% of general insurance premiums, followed by motor insurance at about 23.5%.

Parametric insurance products, which trigger payouts based on predefined conditions such as weather events, are being introduced to speed up claims for governments, businesses and households.

Projections show that general insurance premiums could grow at an average annual rate of more than 10% through 2029.

鈥淲e鈥檒l make the assessment after reviewing other risks. What鈥檚 important is improving coverage,鈥� Mr. Regalado said in a statement.

He added that collaboration will be needed to broaden access and raise participation.

鈥淭hrough programs on financial literacy and inclusion, together with strengthened regulatory supervision, we aim to broaden access to insurance and achieve even greater protection for all Filipinos this year,鈥� Mr. Regalado explained. 鈥� Mhicole A. Moral

In its stated vision, the organization seeks to be the 鈥渢railblazer in providing a globally competitive and ecologically sustainable business environment that encourages and nurtures the growth of investments, exports and employment through the creation and management of environment-friendly economic zones and industries, efficient administration of incentives, utmost delivery of inclusive and resilient services, and focused investment promotion.鈥�

30 years after it was created under Republic Act No. 7916, or the Special Economic Zone Act of 1995, and later amended by Republic Act No. 8748, PEZA has become one of the pillars on which the Philippines rests its ambitions.

As of this March, the country is just shy of the upper middle-income status according to the World Bank. Data released by the multilateral lender showed that the Philippines has gross national income (GNI) per capita reaching $4,470 in 2024.

The World Bank classifies economies with a GNI per capita between $4,496 and $13,935 as upper middle-income economies.

Of course, that achievement does not hinge on a single policy or institution, but simply the cumulative result of structural shifts in the country鈥檚 productivity, investment, and industrial capacity. Within that broader context, however, PEZA has functioned as the quiet and consistent enabler of the economic conditions that made it possible.

At the core of PEZA鈥檚 vision is the idea that geography can be engineered for growth, utilizing a particular region鈥檚 strengths as the driver of output. The law provides a framework for integrating and coordinating the development of special economic zones (SEZs) 鈥� ranging from export processing zones to industrial parks and free-trade zones 鈥� into a national strategy.

These zones function as highly developed ecosystems where infrastructure, labor, and capital converge efficiently. In these spaces, businesses are given a level of operational predictability and service quality that is often difficult to achieve elsewhere in the country.

Infrastructure development is another pillar of PEZA鈥檚 functions. Whether through direct construction, public-private partnerships, or build-operate-transfer arrangements, PEZA ensures that ecozones are equipped with the facilities necessary for industrial activity from roads and ports to utilities and telecommunications systems.

Lowered risks attract investors, and investment fuels progress. From reduced corporate income tax rates to streamlined regulatory processes and access to world-class infrastructure, SEZs offer an attractive proposition for businesses looking to听establish听or expand their operations in the Philippines.

Hubs of investment and growth

While Metro Manila听remains听the country鈥檚 primary economic powerhouse, ecozones in provinces have helped decentralize employment and investment, contributing to regional development.

One of the more distinctive features of PEZA-administered zones is their treatment as separate customs territories. Within the bounds of national sovereignty, these areas operate under a different set of trade and customs rules, allowing for the smoother flow of goods and inputs. This legal distinction is central to the competitiveness of ecozones, reducing friction for export-oriented enterprises and aligning them more closely with international supply chains.

For instance, Manufacturing Economic Zones are specialized areas designed to host manufacturing industries, including automotive, electronics, garments, and other value-added production activities. Notable examples include the Toyota Sta. Rosa Industrial Complex and the Mactan Export Processing Zone. These zones are built to attract foreign direct investment,听facilitate听technology transfer, and strengthen the competitiveness of the Philippine manufacturing sector. Typically structured as industrial parks, estates, or export processing zones, they provide the infrastructure and environment necessary for large-scale production and integrated supply chains.

Agro-Industrial Economic Zones, by contrast, are focused on agribusiness and agro-industrial development. These zones are intended to support rural development and agricultural modernization by integrating farming, processing, and distribution within a single ecosystem. The goal is to create efficiencies across the agricultural value chain while enabling higher-value production. Examples include the Sarangani Agro-Industrial Eco Zone and the AJMR Agro-Industrial Economic Zone.

Tourism Economic Zones take a different approach, focusing on service-oriented industries tied to travel and leisure. These zones are designed to support resorts, hotels, transport networks, and entertainment facilities, positioning themselves as destinations for both domestic and international visitors. Their primary function is to stimulate tourism-driven economic activity and generate employment. One example is the tourism zone in Barangay听Caparispisan,听Pagudpud,听Ilocos听Norte, which reflects ongoing efforts to expand tourism infrastructure beyond established hubs.

Information Technology (IT) Parks, meanwhile, capitalize on the Philippines鈥� strength in services, particularly in IT and business process outsourcing. These zones host business process outsourcing firms, software developers, and other technology-driven enterprises, supported by modern infrastructure, reliable telecommunications, and targeted incentives. Prominent examples include the Cebu IT Park and the听BatStateU听Knowledge, Innovation, and Science Technology Park. Given the sector鈥檚 significant contribution to exports and employment, IT parks have become one of the most widespread types of economic zones in the country.

Beyond these, the Philippines has also begun developing more specialized ecozones tailored to emerging industries. Medical Tourism Parks, for instance, are designed to attract healthcare-related travel by integrating medical services with hospitality infrastructure. More recently, the PEZA has moved to establish pharmaceutical and medical device (pharma-dev) zones, with multiple locations under consideration nationwide. These initiatives signal a shift toward more targeted, high-value sectors as the country continues to refine its economic zone strategy.

鈥楶earl of progress鈥�

Since 1995, PEZA has contributed over P4.5 trillion in investments with more than 1.81 million high quality jobs, and over US$1.12 trillion in exports to the nation. Speaking at PEZA鈥檚 30th anniversary celebration, PEZA Director General Tereso O. Panga called the organization 鈥渢he Pearl of Progress,鈥� reflecting on the agency鈥檚 three-decade journey and its impact on national development. He described PEZA as 鈥渁 legacy 鈥� polished through time, perseverance, and determination.鈥�

Yet, to move forward into the future, he stressed the pivotal role of partnership to sustaining the momentum it has built throughout the years.

鈥淲e cannot do this alone. The most essential element that has allowed PEZA to听be so听successful听are听the synergies built through time with our industry partners. Without them, we would not have achieved so much.鈥�

Japan is one such partner. Ambassador Extraordinary and Plenipotentiary of Japan to the Philippines Endo Kazuya delivered a message recognizing Japan as PEZA鈥檚 top country investor and congratulating the 18 Japanese companies honored during the Investors鈥� Recognition Night.

Noting the presence of more than 730 Japanese enterprises听operating听within PEZA ecozones, the ambassador underscored Japan鈥檚 long-standing partnership with the Philippines, saying, 鈥淭his makes Japan the largest investor of PEZA. I also pay tribute to the hard work and dedication of all individuals, especially the Filipino workers. Together with PEZA, we will continue to work tirelessly to further strengthen the already robust economic ties between our two nations.鈥�

The sentiment was echoed by industry leaders such as PHILEA President Francisco S.听Zaldarriaga, SEIPI President Dr. Danilo Lachica, and IBPAP President Jack R. Madrid, who expressed continued trust in PEZA鈥檚 policy stability, investor-centric governance, and institutional credibility. They emphasized that PEZA鈥檚 sustained advocacy for globally competitive ecozones has supported industrial expansion across the manufacturing, electronics, semiconductor, and IT-BPM sectors, positioning the Philippines as a reliable partner in global value chains.

Deputy Director General for Finance and Administration Maria Veronica F. Magsino reiterated PEZA鈥檚 commitment to integrity, service excellence, and fostering a business environment anchored on trust and partnership.

鈥淢ay we continue to build, innovate, and prosper together for many decades to come,鈥� she said. 鈥� Bjorn Biel M. Beltran

PEZA Director-General Tereso O. Panga said the agency will build on this momentum as it targets P300 billion in investments this year.

鈥淲e remain focused on strengthening our ecozone ecosystem, expanding high-quality investments, and creating more jobs for Filipinos, as we position PEZA for sustained growth and greater opportunities in the years ahead,鈥� he said in a statement.

As the Philippines assumes the 2026听chairmanship听of the ASEAN Business Advisory Council, the country pushes for advanced regional trade and investment, prioritizing economic corridors and business partnerships across the region.

Meanwhile, PEZA, working with the Department of Trade and Industry (DTI) and overseas trade offices, has launched a coordinated campaign to attract manufacturers, technology firms, and听logistics听providers to its network of economic zones.

For instance, the government is leveraging the 鈥淐hina+1+1鈥� strategy, where firms diversify operations beyond China to manage risks linked to tariffs and geopolitical pressures. Now, PEZA is receiving inquiries from companies in robotics, electronics, automotive, medical devices and e-commerce.

At the same time, China remains one of the country鈥檚 top investment partners, accounting for 22% of total foreign investments. Within PEZA zones, 118 Chinese firms have generated more than $406 million in exports and created over 16,000 jobs.

A recent investment mission to Shenzhen brought together Philippine officials and Chinese firms exploring expansion in Southeast Asia. Ten companies joined the Philippine Business Forum, including global motorcycle brand Piaggio, while several firms entered exploratory talks for possible relocation.

PEZA also reported that Shenzhen-based听Grandsun听plans to expand its Philippine operations and bring more of its supply chain into the country.

Several companies cited proximity to China and uncertainty over US tariffs as key factors in evaluating the Philippines as a production base.

Similar efforts in Taiwan have produced concrete investment commitments and expansion plans in high-value sectors such as electronics and communications.

Aromate Industries signed a $4.3 million agreement to build a new facility in Batangas, while another Taiwanese electronics manufacturer is preparing a $5 million to $6 million project expected to create about 300 jobs by late 2025.听听

Other firms confirmed plans to establish production facilities, including a video products manufacturer projecting up to $90 million in sales within three years and a broadband equipment supplier set to expand operations in Laguna by 2026.

PEZA said 78 Taiwanese firms already operate in its zones, with investments exceeding P17 billion, exports of $485 million, and more than 26,000 jobs generated.

Still, Japan continues to lead foreign direct investment in Philippine economic zones, with about 800 Japanese firms generating more than P500 billion in investments and employing over 343,000 workers.

Japanese firms, including Sumitomo Wiring Systems, MinebeaMitsumi, and Kaga Electronics, expressed plans to expand operations, while other companies are studying new manufacturing projects.

Discussions with business groups such as Keidanren and Keizai Doyukai also covered labor mobility, skills matching, and supply chain integration, with both parties identifying agriculture, healthcare, and manufacturing engineering as priority sectors.

Within ASEAN, the Philippines engaged business leaders across manufacturing, renewable energy, agro-processing, and IT services, promoting the Philippines as a base for regional expansion.

A Thai food processing firm has established a 5.5-hectare facility in Misamis Oriental, expected to generate up to 2,500 jobs, while other companies are exploring projects in agriculture and industrial production.

DTI and PEZA officials also discussed partnerships with Thailand-based firms for digital infrastructure, including FiberHome, to develop smart industrial communities in economic zones.

Beyond Asia, PEZA led a five-day investment mission to the United States, held alongside the Consumer Electronics Show 2026 in Las Vegas.

The mission secured investment leads across several sectors, including a planned nitrile glove manufacturing project expected to bring about $200 million in capital and more than 2,000 jobs across South Luzon and Cebu.

PEZA also linked with a prospective investor in portable brain imaging systems, a segment within the medical device sector that officials identified as a new source of foreign direct investment following the launch of the country鈥檚 first pharmaceutical park.

In New York, the delegation met a global aerospace firm planning to expand its Philippine operations. The company, which has operated in Baguio City since 1984, is considering New Clark City for its next phase. The expansion could bring in more than $15 million in new investments and add 1,000 jobs to its existing workforce of over 2,000 employees.

Beyond manufacturing, the Philippines also engaged a U.S.-based mental health services provider exploring the establishment of a global center of excellence in the country. The proposed IT and business process management (IT-BPM) operation could employ more than 1,500 Filipinos within its first year.

PEZA also held discussions with investors in renewable energy, liquefied natural gas, and housing, reflecting broader interest in infrastructure and energy-related projects.

More than 250 companies with American equity are currently registered in its zones, accounting for over P410 billion in cumulative investments and employing more than 380,000 Filipinos as of November 2025.

In Europe, ongoing negotiations for a Philippines-European Union free trade agreement are boosting investment prospects. PEZA said more than 190 companies with European equity already operate in its zones, contributing over P400 billion in investments and supporting more than 430,000 jobs.

The Philippines鈥� trade relationship with the European Union currently operates under the Generalised Scheme of Preferences Plus (GSP+), which allows duty-free access for more than 6,000 products. The arrangement supported 鈧�2.2 billion in Philippine exports in 2024, while total bilateral trade reached 鈧�16.8 billion.

With GSP+ set to expire in 2027, officials from both parties said they are working to complete the free trade agreement to maintain market access and avoid disruptions.

PEZA believes that foreign investors are confident with the country鈥檚 economic performance and its economic zones.

鈥淸W]e are confident that the influx of investments and expansion of projects at PEZA will continue,鈥� Mr. Panga explained. 鈥淟ocators are seeing the value of expanding and consolidating their supply chains in the Philippines.鈥�

Consequently, the agency cited the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) law, green lanes for strategic investments, and ongoing reforms in public-private partnerships (PPP) as key initiatives to attract foreign firms. Such measures complement PEZA鈥檚 鈥渙ne-stop shop鈥� system, which handles investor registration and compliance processes.

While these reforms target national competitiveness, the World Bank noted that sustaining growth depends on how well the government executes its investment plans. Stronger public investment execution and fiscal consolidation remain priorities, particularly in infrastructure and essential services that support business operations. 鈥� Mhicole A. Moral

The transition from the 鈥淏uild, Build, Build鈥� era to the current administration鈥檚 鈥淏uild Better More鈥� program has evolved from a simple change in branding to a multi-modal strategy that is increasingly leaning on the private sector to bridge the nation鈥檚 P9.14-trillion infrastructure gap.

With a 2026 National Expenditure Program (NEP) earmarking P1.5 trillion (roughly 5.0%听of the gross domestic product (GDP)) for infrastructure, the government is听attempting听a delicate balancing act:听maintaining听high-speed construction while navigating fiscal consolidation and renewed focus on transparency.

The PPP renaissance

The defining characteristic of the 2025-2026 infrastructure landscape is the resurgence of public-private partnerships (PPP). Following the full implementation of Republic Act No. 11966 (or the PPP Code), the pipeline of projects has elevated to higher levels.

According to the PPP Center, the project pipeline hit 251 projects valued at P2.81 trillion by last January. This marks a near-doubling of the pipeline from just two years ago. The shift is not merely quantitative; it is institutional.

The implementation of the PPP Code has served as a cornerstone for regulatory stability, addressing a long-standing demand from the private sector for greater predictability in long-term investments.

By institutionalizing a streamlined approval process for unsolicited proposals and offering a clearer definition of Material Adverse Government Action, the state has lowered the risk profile for high-impact ventures. This framework is credited with unlocking institutional capital that had been previously deterred by policy uncertainty.

A primary example is the Ninoy Aquino International Airport (NAIA) Modernization. Now into its rehabilitation phase under the San Miguel Corp.-led New NAIA Infrastructure Corp., the project serves as a litmus test for the government鈥檚 ability to hand over critical brownfield assets to private operators without the past legal entanglements.

Rail expansions

While aviation enhancements take place, the backbone of the 鈥淏uild Better More鈥� program remains the massive rail expansion aimed at decongesting the Greater Manila Area.

The Metro Manila Subway Project (MMSP), dubbed the 鈥淧roject of the Century,鈥� has seen a 鈥渂anner year鈥� in 2025 regarding right-of-way (ROW) acquisition. Transportation Acting Secretary Giovanni Z. Lopez reported last January that ROW acquisition for the subway had reached 90.76%, up from just 51% a year prior. This acceleration was attributed to the creation of the dedicated Right-of-Way and Site Acquisition (ROWSA) task force, which grew from 200 to 900 personnel to handle legal and social safeguards.

Though the full 33-kilomenter line is not expected to be fully operational until 2032, the Department of Transportation is eyeing partial operations for the East Valenzuela and North Avenue stations by 2028.

Parallel to the subway project is the North-South Commuter Railway (NSCR). The 147-kilometer elevated railway, stretching from Clark to Calamba, serves as a major example of connectivity developments. As of early 2026, the North Segment (Malolos to Clark) has cleared 56% of its land requirements. The government is currently in the process of bidding out the Operations and Maintenance (O&M) contract for the entire NSCR system, with an award expected by mid-2026 鈥� another major PPP play that delegates technical efficiency to the private sector.

Regional dispersal

The 185 Infrastructure Flagship Projects (IFPs) currently on the Economy and Development Council鈥檚 list are notably more dispersed than previous iterations. While the National Capital Region accounts for a significant chunk of the value, 65% of the projects are region-specific or inter-regional.

In Central Visayas, the list grew to 11 flagship projects in 2025, including the Cebu Urban Mass Rapid Transit (UMRT) Central Line and the New Dumaguete Airport.

In Mindanao, the Davao City Bypass Construction Project and the Samal Island-Davao City Connector Bridge are moving toward critical construction milestones.

The prevailing strategy appears to be the creation of a national logistics network by connecting regional hubs. By lowering the cost of moving goods and people across the archipelago, the government can provide the physical foundation necessary to support the Ease of Doing Business Act.

Fiscal realities and 鈥楪overnance 罢补虫鈥�

Despite the momentum, the path forward is not without friction. The Philippine economy faced a localized slowdown in the second half of 2025, with the GDP growth cooling to 5.1-5.3% as the country grappled with 鈥済overnance concerns鈥� and a corruption scandal that briefly paralyzed public construction in late 2025.

A World Bank 2026 report warns that sustaining growth will require 鈥渟tronger execution of public investments and credible fiscal consolidation.鈥� With the debt-to-GDP ratio still a point of concern for credit rating agencies, the government is increasingly looking toward the Maharlika Investment Fund (MIF), as well as official development assistance (ODA) from partners like the Japan International Cooperation Agency (JICA) and the Asian Development Bank (ADB), to supplement the national budget.

Furthermore, digital connectivity has become a priority. The 2026 budget allocates $1.53 billion for digital transformation, recognizing that physical roads and bridges are insufficient in a world where data is the primary commodity.

The road ahead

As the current administration enters the second half of its term, the focus is shifting from approving to delivering. The target of spending 5-6% of GDP on infrastructure annually remains the guiding principle. However, the true measure of success will be whether these projects can translate into a reduction in the country鈥檚 high logistics costs 鈥� currently among the highest in Southeast Asia.

By late 2026, the integration of the PPP Projects Dashboard with the Project Information and Management System is expected to allow for real-time monitoring of every major project 鈥� a move aimed at restoring investor confidence after the hurdles of 2025.

The Philippines is no longer just dreaming of a 鈥淕olden Age of Infrastructure.鈥� It is paying for it, digging for it, and most importantly, systematically planning for it. Whether the momentum can survive the political cycles of the future remains to be seen, but for now, the gears of the 鈥淏uild Better More鈥� machine are turning faster than ever. 鈥� Krystal Anjela H. Gamboa

At least on paper, national policies look to make good on that promise: the government has already opened the sector to full foreign ownership, rolled out successful green energy auctions, and committed to raising renewables鈥� share in the power mix to 50% by 2040.

Investment is growing. The Department of Energy (DoE) predicts P25 trillion worth of investments to flow into the local renewable energy (RE) sector over a 10-year auction plan. The potential combined capacity for the year is predicted to reach about 18,000 megawatts (MW). According to the DoE, this positions the country within range of its target of expanding RE share to 35% by 2030.

鈥淚f you think about it, last听year听P1.3 trillion went into renewable energy, and we鈥檙e talking about 10 years here,鈥� DoE Secretary Sharon S. Garin previously told media.

Yet, ongoing energy security challenges as well as persistent grid bottlenecks are foreseen to slow progress towards that goal, according to international intelligence firm S&P Global. It predicts such headwinds are dragging down the share of renewables in the Philippines鈥� power mix to just 27% by 2030.

RE projects are capital-intensive, technically complex, and subject to the usual risks of infrastructure development. But the uncomfortable truth is that the Philippines鈥� renewable investment challenge is not primarily an energy problem. It is a system problem 鈥� rooted in infrastructure gaps, institutional friction, and market design inefficiencies that extend well beyond the power sector.

Vince Heo, director for Asia-Pacific Power and Renewables Research at S&P Global, pointed to structural and systemic gaps in the Philippine energy grid 鈥� the transmission network in particular 鈥� that prevent new RE power projects from actually reaching consumers.

鈥淲e are running the software to see whether the system balance could be met or not, and听it鈥檚听clearly not in the Philippines. You听don鈥檛听have good grid planning here,鈥� Mr. Heo said.

Essentially, RE projects are often located in remote provinces where wind, sun, and geothermal energy听is听abundant. But these sites are often far from existing high-voltage transmission听lines听or any accessible interconnection points to plug the harvested energy into the national grid. Without a modern grid and sufficient energy storage systems, the system also cannot balance the intermittent nature of RE sources.

This also hinges on the assumption that such RE projects get off the ground in the first place. In one example of an offshore wind development, for instance, S&P Global highlights that a developer might need over 80 different permits involving more than 25 different government agencies.

Mr. Heo warned that at the current rate, the Philippines is likely to only reach the target 50% RE share by 2050, ten years later than the 2040 goal set under the government鈥檚 Power Development Plan 2023鈥�2050.

Energy policy has moved faster than infrastructure planning, resulting in a system where generation capacity is expanding without the commensurate ability to deliver that power efficiently across the country. In such an environment, even technically viable projects face curtailment risks 鈥� an outcome that directly undermines investor returns.

Energy service contracts only pay for delivered energy. As such, wasted energy, because the grid cannot absorb the power generated, leads to lost revenue.

For investors, that is hardly a convincing environment. Capital tends to be patient when risks are clear and manageable; it becomes cautious when timelines and outcomes are unpredictable.

Especially when placed amid a global context where capital for RE is not scarce but highly selective, the Philippines is competing with neighboring markets for investment. For many, countries like Vietnam and Indonesia are simply more attractive in terms of generating returns.

A study by the Philippine Institute for Development Studies (PIDS) published March 17 found that from 2003 to 2024, electricity consumption in the Philippines rose from 52,941 gigawatt-hours to 126,941 gigawatt-hours, an equivalent increase of about 140%. In contrast, over the same period, transmission lines expanded from 20,774 circuit-kilometers to around 23,110 circuit-kilometers, or only about 11%.

鈥淭his underinvestment in transmission contributed to the ongoing energy insecurity in the Philippines,鈥� the study said.

PIDS noted that delays in transmission projects remain a key issue that affect investment timing and the system鈥檚 ability to keep pace with demand. These delays are linked to a combination of regulatory processes, right-of-way constraints, and coordination challenges across institutions.

The study also highlights that delays in regulatory processes, particularly in rate-setting, can create more uncertainty and influence investment decisions, with implications for both service delivery and cost outcomes.听

鈥淲hen transmission infrastructure is not available on time, lower-cost or cleaner generation gets curtailed, forcing the system to rely on more expensive alternatives,鈥� the study said.

Long-standing structural issues translate into higher system costs, especially during periods of elevated fuel prices. Higher system costs mean a less affordable, less secure national energy system.

鈥淚mproving transmission sector performance will depend on regulatory capacity and clarity, effective coordination, and a governance framework that consistently prioritizes reliability, affordability, and long-term system resilience,鈥� the study concluded.

Clearly, the limitation is not the availability of renewable resources, but the readiness of the system to support them. Taken together, these challenges point to a single conclusion: that the barriers to renewable investment in the Philippines are interconnected, reinforcing one another across infrastructure, regulation, and market dynamics.

Grid limitations amplify investor risk; regulatory delays exacerbate financing costs; weak market signals dampen investor incentives. Addressing any one of these in isolation will yield only partial gains.

The Philippines鈥� energy transition, then, will take much more than the deployment of solar panels or the construction of more wind farms. It will depend on an effort that will take the entirety of the nation 鈥� less discovering new solutions, and more about executing existing ones more effectively. 鈥� Bjorn Biel M. Beltran

The practice of 鈥�utang鈥� has long been rooted in trust and survival, and debt has not been treated as a last resort but as part of daily life. When income falls short, borrowing usually fills the gap. Such arrangement has been reinforced across generations, especially as saving is difficult and access to formal credit remains uneven.

Now, this pattern is starting to change for Filipinos.

The Institute of International Finance reported that the debt ratio among Filipino households eased to 11% in the fourth quarter of 2025, from 11.6% a year ago. Lending activity remains steady, according to the Bangko Sentral ng Pilipinas (BSP), with household loans rising from 23.3% to 28.4%.

A fourth-quarter 2025 Consumer Pulse Study by TransUnion also found that borrowing decisions have become more intentional, with consumers showing greater scrutiny before taking on debt. Intent to apply听for or听refinance credit fell to 47% from 53% a year earlier.

Instead, Filipinos now lean toward specific and controlled credit options. Personal loans accounted for 49% of planned borrowing, while听buy听now, pay later (BNPL) services made up 35%. These products often come with defined terms and shorter repayment periods, which may help borrowers plan their finances more closely.

The same report noted that 58% of Filipinos still view access to credit as important to achieving financial goals, but this figure marks a slight decline from the previous year. The change points to a change in mindset, with credit听remaining听relevant, but not as the first solution to financial pressure.

Deep roots of borrowing culture

According to the Financial Executives Institute of the Philippines, borrowing is often normalized in Filipino society, where financial support flows through family and community networks. The concept of 鈥�utang听na听loob,鈥� or a sense of obligation tied to borrowed help, reinforces this system.

Savings also听remain听limited for many households. According to the BSP, only 25.6% of households reported having savings in 2024, and many continue to spend before setting aside money. In cases of emergencies, borrowing often becomes听the听immediate response.

Economic conditions play a part, as inequality听remains听pronounced. The top 1% of earners account for 17% of national income, while the bottom 50% share only 14%. As of 2023, about 17 million Filipinos lived below the poverty line, according to the Philippine Statistics Authority.

Meanwhile, a large gap in understanding interest rates, loan听terms听and long-term financial planning has contributed to cycles of debt, especially among households with fewer resources.

Confidence rises with caution

The change in borrowing behavior comes as households report stable income conditions alongside persistent cost pressures.

TransUnion noted that 42% of Filipinos reported income growth in the past three months, while 41% said their income remained unchanged. Looking ahead, 75% expect their income to rise within the next year, and 80% express optimism about their household finances.

While many expect income growth, inflation听remains听the top concern for 81% of Filipinos, followed by job stability at 57% and interest rates at 45%. These issues have stayed consistent since 2024,听indicating听that households are planning beyond short-term changes.

Meanwhile, 49% of households expect higher bills and loan payments, while 42% reported difficulty paying debts in full. These pressures have led some consumers to rely less on credit for daily needs and more for targeted use.

At the same time, about 47% of households cut back on discretionary spending such as dining out and travel. Half of respondents said they plan to spend less during the holiday season compared with the previous year. Only 27% plan to increase spending on major purchases such as appliances or vehicles.

Despite these adjustments, households are not fully withdrawing from economic activity. Instead, they are redefining spending priorities, focusing on purchases within their budget.

Widening access to credit

The 2024 TransUnion Credit Perception Index placed Gen Z as leaders of credit adoption, with a score of 83 and nearly one-third of new-to-card borrowers coming from the group. Between 2023 and 2025, credit card usage among young adults increased from about 9% to 13.5%, while overall ownership reached more than 15% of Filipino adults.

However, hesitation听remains听as 69% of Filipinos prefer cash or e-wallets, while 55% say they avoid credit due to concerns about debt and 54% link it to overspending.

Meanwhile, financial technology firms are widening access to credit, particularly for users outside the traditional banking system.

Mobile platforms now offer credit lines, BNPL services, and microloans embedded within digital wallets. Such tools function like traditional credit but require less documentation and offer faster approval through app-based systems.

At the same time, banks are adjusting to technology, with many of them offering app-based applications, instant approvals, and automated credit scoring to attract first-time borrowers.

Hence, digitalization has blurred the line between digital finance and formal lending, and younger users are adopting these services as entry points to credit.

At the policy level, the BSP plans to open external access to its Credit Information Management System this year to consolidates borrower-level data. Under the program, lenders, credit-scoring firms, and borrowers will gain access to verified credit information, subject to data privacy rules.

Borrowers will also be able to review their own records, which could help them build credit histories through consistent repayment. As of mid-2025, more than 16 million borrower profiles are tied to over 65 million contracts.

The BSP also continues the Economic and Financial Learning Program to educate Filipinos on economics and finance. The program aims to promote greater understanding of essential economic concepts and issues among the general public toward economic participation.

In a statement, BSP Governor Eli M. Remolona Jr. called for stronger coordination to widen access to reliable credit and deepen financial inclusion across the country.

鈥淔inancial education and consumer protection remain essential ingredients in [financial inclusion]. We must equip every Filipino with the knowledge and confidence to make sound financial decisions and safeguard their financial well-being,鈥� he said. 鈥� Mhicole A. Moral

Traditional banking systems 鈥� anchored in collateral requirements, extensive documentation, and rigid credit scoring 鈥� have historically excluded large segments of the population, particularly low-income households, informal workers, and micro-entrepreneurs.

In recent years, however, financial technology (fintech) innovations, especially buy now, pay later (BNPL) schemes and digital lending platforms, have begun to reshape the credit landscape.

These tools promise to democratize access to finance, but they also introduce new risks that policymakers, lenders, and consumers must navigate carefully.

The access gap

A significant portion of the Philippine population remains either unbanked or underbanked. Many individuals lack credit histories, thus regarded as 鈥渢hin-file鈥� borrowers, making it difficult for traditional financial institutions to assess their creditworthiness. As a result, access to loans, credit cards, and other financial instruments remains limited.

Digital lending platforms have emerged as a response to this gap. Leveraging mobile technology, alternative data (such as mobile usage or e-wallet transactions), and automated underwriting, these platforms extend credit to individuals who would otherwise be excluded.

The rapid adoption of such services underscores the scale of unmet demands: in 2023 alone, Filipinos spent a cumulative 1.3 billion seconds on digital lending applications, with millions of active users engaging in these platforms regularly.

BNPL as entry point to credit

Among digital credit innovations, BNPL has gained traction. BNPL allows consumers to split purchases into smaller, often interest-free installments over a short period.

Its integration into e-commerce platforms and retail ecosystems has made it a frictionless payment option, especially for younger consumers.

In the Philippines, awareness and usage of BNPL are already widespread. TransUnion鈥檚 Consumer Pulse 2024 study found that 82% of Filipino respondents were aware of the services, and 63% had used them within the past year. This adoption is especially pronounced among Gen Z, whose familiarity with digital platforms and preference for flexible payment options drive usage rates even higher.

From a financial inclusion perspective, BNPL functions as a gateway product. It introduces first-time borrowers to formal credit systems without the barriers associated to traditional loan. For individuals with no prior credit history, timely BNPL repayments can help establish a credit profile, especially when providers report repayment data to credit bureaus.

Digital lending platforms and credit expansion

Beyond BNPL, digital lending platforms offer a broader range of products, including personal loans, salary advances, and microloans. These platforms rely heavily on data-driven credit assessment models, incorporating non-traditional indicators such as transaction histories, device data, and behavioral analytics.

The expansion of digital lending has significantly increased credit penetration. By mid-2025, the Philippine credit registry had recorded 66 million borrowers and over 400 million tradelines, reflecting rapid growth driven largely by fintech lending, including BNPL products.

This expansion signals a structural shift: credit is no longer confined to formal banking channels but is increasingly embedded in digital ecosystems.

Moreover, these platforms are particularly effective in reaching underserved populations. They reduce transaction costs, eliminate the need for physical branches, and provide near-instant loan approvals.

For micro-entrepreneurs and gig workers, who often operate outside formal employment structures, this accessibility can be transformative.

Economic and behavioral impacts

The expansion of credit through BNPL and digital lending has measurable economic effects. At the household level, increased access to credit can smooth consumption, enabling individuals to manage income volatility and finance essential purchases.听

At the macro level, it can stimulate demand, particularly in retail and e-commerce sectors.听

However, the behavioral implications of these tools are complex. BNPL鈥檚 design 鈥� characterized by small, deferred payments 鈥� reduces the burden of paying, making purchases feel more affordable. This can encourage higher consumption and, in some cases, impulse spending.

Consumer protection

Despite their benefits, BNPL and digital lending platforms raise significant concerns around consumer protection and financial stability.

One major issue is the risk of over-indebtedness. As BNPL transactions are often quick and require minimal credit checks, consumers may take on multiple obligations simultaneously. This phenomenon 鈥� sometimes referred to as 鈥渄ebt stacking鈥� 鈥� can lead to repayment difficulties, especially when due dates overlap or income is irregular.

In the Philippine context, this risk is amplified by limited financial literacy and prevalence of thin-file borrowers. Without robust credit assessment mechanisms, lenders may struggle to accurately price risk, increasing the likelihood of defaults.

Additionally, not all digital lending platforms adhere to strong consumer protection standards. Some have been criticized for opaque fee structures, aggressive collection practices, and misuse of personal data.

In this respect, institutions such as the Bangko Sentral ng Pilipinas (BSP) and the Credit Information Corp. (CIC) play key roles in overseeing credit markets and ensuring data integrity.

Innovative inclusion

BNPL and digital lending platforms are poised to play an increasingly central role in financial ecosystems. Market projections suggest sustained growth, driven by the expansion of e-commerce, increased smartphone penetration, and evolving consumer preferences.

Technological advancements, such as artificial intelligence and machine learning, will further refine credit scoring models, enabling more accurate risk assessment and personalized lending products. Integration with digital wallets, super apps, and embedded finance solutions will also deepen the reach of credit services.

However, the long-term sustainability of this ecosystem depends on responsible innovation. Without adequate safeguards, the same mechanisms that expand access to credit could also exacerbate financial vulnerability.

BNPL and digital lending platforms represent a shift in how credit is accessed and distributed. By lowering barriers and leveraging technology, they have opened new pathways for financial inclusion, particularly in underserved markets like the Philippines. For many individuals, these tools provide not just convenience but a first step into the formal financial system.

Yet, this expansion is not without trade-offs. The accessibility of digital credit can lead to over-borrowing, while gaps in regulation and consumer protection expose users to potential harm. As such, the challenge lies in harnessing the benefits of these innovations while mitigating their risks.

A balanced approach 鈥� combining technological innovation, robust regulation, and consumer education 鈥� will be essential in ensuring that BNPL and digital lending platforms fulfill their promise: not merely expanding access to credit, but doing so in a way that is equitable, sustainable, and empowering. 鈥� Krystal Anjela H. Gamboa

For these nearly 20 million Filipinos, one statistic that accompanies them in their credit card journey is their credit score. Understanding the concept of the credit score may seem complicated at the onset. However, at its core, a credit score is simply a reflection of the user鈥檚 financial behavior.

These three-digit numbers are usually based on the credit card owner鈥檚 credit report. These reports are summaries of one鈥檚 financial transactions submitted to the Credit Information Corp. (CIC), containing an individual鈥檚 basic information as well as their loan contracts with lending institutions, utility subscriptions, and other obligations which the CIC is authorized to collect.

Derived from these reports is one鈥檚 credit score, which is calculated by accredited credit bureaus that receive data from the CIC. These bureaus use proprietary scoring models, which vary depending on the bureau, to analyze an individual鈥檚 financial behavior and then generate a three-digit score that represents overall creditworthiness.

To better understand how today鈥檚 credit score came to be, it is important to look back at the origins of credit evaluation itself. Long before algorithms and centralized databases, systems of assessing creditworthiness were far more manual, subjective, and rooted in commercial trade.

Before there was credit scoring, there was commercial credit reporting. The commercial reports were calculated and worked similarly to how modern-day credit reports work, with the only difference being that they focused on evaluating businesses rather than individual consumers.

Mercantile agencies, or what used to be credit bureaus, relied on correspondents to gather detailed, and often subjective, information about borrowers, which was then compiled into centralized records that were then utilized as the basis for commercial reports.

Over time, as mass retail and installment-based purchasing grew in the late 19th century, the need to evaluate individual consumers led to the rise of consumer credit reporting. From these early, decentralized and subjective practices, the system gradually evolved into the more standardized and data-driven credit bureaus we recognize today.

Likewise, the shift toward modern credit scoring accelerated in the 1960s, when credit reporting became computerized, and thousands of local bureaus began consolidating into a few major players. Much like most industries since the invention of the computer, records moved from paper files to digital systems, and data became easier to standardize, share, and analyze at scale.

While lenders were initially hesitant to replace subjective evaluations, the introduction of standardized scoring models helped transform credit assessment into a more consistent and widely adopted system. By the 1990s, trusted institutions began requiring these scores for mortgage applications, and ever since, credit scoring has become a necessity for credit card owners in financial decision-making.

In the Philippines today, credit bureaus calculate credit scores based on five distinct criteria: credit payment history, the amount owed or credit utilization ratio, length of credit history, types of credit used, and new credit. These factors impact the scores in their own ways but collectively dictate one鈥檚 creditworthiness in the eyes of financial institutions.

Credit payment history is often considered the most influential factor. It reflects how consistently a borrower meets their payment obligations, whether it be paying bills on time, how frequently they pay their amount due, or even missed or delayed payments. In simple terms, it is a track record of payments that signals reliability or unreliability.

The amount owed, commonly referred to as the credit utilization ratio, measures how much of a person鈥檚 available credit is being used. Keeping utilization at a manageable level shows that a borrower is using credit responsibly without overextending.

The length of credit history includes the age of the oldest account, the newest account, and the average age across all accounts. This criterion can provide more data for lenders to assess behavior, often resulting in a more thorough evaluation.

Types of credit used, or credit mix, considers the variety of financial products a borrower has handled and demonstrates financial flexibility and discipline, which can positively impact a score.

Finally, new credit reflects how frequently a person applies for or opens new credit accounts. While taking on new credit is not inherently negative, multiple applications within a short period may signal higher risk to lenders.

As credit becomes more embedded in everyday financial life, understanding how credit scores work empowers Filipinos to make smarter, more informed decisions about borrowing and spending. Ultimately, knowing what credit scores are is one step closer to a tool that, when managed well, can open doors to greater financial opportunities and stability. 鈥� Jomarc Angelo M. Corpuz

All roads lead to retirement. After graduating from college, working for decades, and climbing the career ladder, most Filipinos eventually retire to rest and reap the fruits of their labor. While that phase of life may seem distant, it is actually one of the most important stages to prepare for as early as possible.

According to a survey by World Finance, Filipinos believe that savings equivalent to 2.1 years鈥� worth of personal income is enough for their retirement, a few months below the regional average of 2.9 years and a few years off for those who opt to retire early. In the Philippines, the optional retirement age currently stands at 60 years, with the mandatory age set at 65. While the numbers are still听impacted听by deaths during the pandemic, the latest data from the World Health Organization shows the country鈥檚 life expectancy to be at 66.4. This means that Filipinos would have to fund between 1.4 and 6.4 years of retirement after leaving their main source of income.

鈥淢any Filipinos are still underprepared for retirement. A large number听rely听on family support, limited savings, or mandatory benefits alone. The challenge is not just听income, but听also delayed planning and low awareness of how much preparation retirement really requires,鈥� Raymund Benedict C. Zalamea, President and CEO of leading retirement consulting firm E.M. Zalamea Actuarial Services, said in an e-mail.

鈥淚n general, Filipinos are ill-prepared for retirement, and there are many factors contributing to this. Among other factors, first and foremost, we are a spending economy; we spend most of what we earn and even money that we have not earned yet,鈥� Rafael G. Ayuste, Independent Director of the Bank of Commerce, added.

The realities that Mr. Zalamea and Mr. Ayuste mentioned go to show the urgency of financial preparation and reinforce the need to begin planning for retirement as early as one starts earning to ensure long-term security and stability during retirement.

鈥淚deally, people should begin as soon as they start听earning. Starting early gives savings more time to grow and makes the discipline easier to build. In retirement planning, time is one of the biggest advantages a person can have,鈥� he explained.

Meanwhile, despite the clear advantages of starting early, Mr. Ayuste explained that financial realities and competing responsibilities often delay retirement planning for many Filipinos until later in life.

鈥淲e听have to听be realistic; that is not likely to happen in the Philippine setting. In addition to the reasons cited above, the Philippine salary base is low compared to the rest of Southeast Asia. Realistically, if one is looking to retire at age 60, then the earliest one can start saving for retirement is at age 40, after听most of the family obligations are settled or partially settled and income has grown to a comfortable level,鈥� he said.

Expounding on starting retirement planning early, Mr. Zalamea notes that the foundation of effective retirement planning lies in developing sound financial habits early on that allow young and retirement planning Filipinos to save for their later years.

鈥淭he first steps are financial awareness, discipline, and consistency. That means learning to budget, avoiding unnecessary debt, building an emergency fund, and setting aside savings regularly, even if the amount is still small. Retirement planning starts with good habits,鈥� he said.

Building on听this emphasis on early habits, Mr.听Ayuste听shared that the next crucial step is to translate financial discipline into a clear and purposeful retirement plan.

鈥淭ime is the greatest advantage of the听young, because听compounding works best when given many years. Retirement planning is not something that begins in your 40s or 50s. The earlier you start thinking about it, the more choices and freedom you will have later in life,鈥� he said.

Similarly, Mr. Zalamea also highlighted that the principle of retirement planning is a continuous process that requires discipline and awareness rather than a single endeavor. He stated how, over time, consistent financial habits and informed decisions will eventually lead to building long-term security.

鈥淪tarting early, staying disciplined, and building financial awareness are听very important. Budgeting, debt management, emergency savings, and continuous financial education all play a role. In many cases, retirement security is built not by one big decision, but by consistently practicing good habits over time,鈥� he added.

Alongside building strong financial habits, Mr. Zalamea also pointed to the need to consider the social and cultural factors that influence retirement planning. With the Philippines being a family-oriented society, he emphasized the importance of balancing personal financial security with the Filipino tradition of supporting one鈥檚 family.

鈥淪upporting family is part of Filipino culture, but people also need to prepare for their own future. The goal is balance. People should help where they can, but also maintain boundaries, follow a budget, and continue building their own retirement fund. Preparing for one鈥檚 own retirement is also a way of protecting the next generation from future financial burden,鈥� he said.

Reinforcing this balance between personal responsibility and family obligations, Mr. Ayuste emphasized the importance of discipline in navigating the financial pressures faced by many Filipinos, particularly those supporting both older and younger generations.

鈥淏eing part of the sandwich generation is a very real and personal situation for many Filipinos. If there is one piece of advice, it is discipline. Discipline means learning to distinguish between needs and wants, and having the courage to say no to wants鈥� The goal is balance: caring for loved ones while still setting aside resources for retirement. Because in the end, preparing for our own retirement is also a way of protecting our family from financial burden in the future,鈥� he said.

These considerations become even more pressing when viewed against the country鈥檚 shifting demographic landscape. At present, the Philippines has around 7.6 million Filipinos aged 60 and above. In 2032, this number is expected to rise to听nearly 9听million or 7% of the populace, making the country an aging population. This only means that more people would have to rely on their savings and other institutions to fund their retirement.

The Philippines鈥� Social Security System (SSS) provides a monthly pension ranging from P2,200 to听nearly P30,000 to retirees, depending on reforms.

鈥淭he SSS and the Government Service Insurance System (GSIS) are important because they provide a foundational layer of retirement support. For private sector employees, retirement benefits under RA 7641 add another layer,鈥� Mr. Zalamea said.

Despite the presence of these institutional support systems, gaps in retirement funding remain a significant concern for many Filipinos. Mr. Zalamea said this backs the importance of strengthening personal savings and investment strategies alongside existing benefits.

鈥淗owever, even taken together, these are often still not enough to sustain the kind of retirement most people would want. That is why personal savings and investments remain very important, especially when started early and allowed to grow through compounding,鈥� he explained.

鈥淔or most, the private sector SSS pension alone will not sustain a comfortable life at retirement. Reduction in expenses at retirement does not take effect immediately, it happens gradually. By the time expenses are substantially reduced, the heathcare expenses kick in. Filipinos, without a doubt, should prepare additional savings or investments as part of their retirement planning,鈥� Mr. Ayuste mirrored.

Given these limitations, Mr. Zalamea emphasized the importance of turning financial awareness into concrete action. He noted that starting early, even with small and consistent steps, can significantly improve one鈥檚 chances of achieving a secure and sustainable retirement.

鈥淩etirement planning should not be postponed. You do not need to start big, but you do need to start. Small and consistent steps taken early can make a meaningful difference later in life. The important thing is to move from awareness to action,鈥� Mr. Zalamea said.

This article appears on the latest 大象传媒 In-Depth’s special edition with the Trust Officers Association of the Philippines for Trust Consciousness Week. To get your free copy, go to .

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While excelling in economic participation, many women still encounter gender-based discrimination, harassment, and barriers to career advancement. Creating safer and fairer workplaces, therefore, requires more than hiring women. It demands structural change, strong institutional policies, and cultural shifts within organizations.

In World Economic Forum鈥檚 (WEF) 2025 Global Gender Gap Report, the Philippines ranked 20^th out of 148 countries. With an overall gender parity score of 78.1%, the country reaffirms its leadership in Asia as one of the most gender-equal countries.

Despite these high rankings, the daily reality for many Filipino women remains complex. Statistical success often masks the persistent gender-based discrimination, harassment, and invisible barriers that hinder career advancement.

The crisis of workplace harassment

One of the most pressing issues women face at work is gender-based harassment and violence. Studies show that harassment 鈥� ranging from inappropriate remarks to coercion and intimidation 鈥� remains a widespread concern in many workplaces.

In a study by International Labour Organization (ILO), 22.8% of employees globally have experienced violence and harassment at work.

The local statistics attests to this. Research from the Philippine Business Coalition for Women Empowerment indicates that one in seven women experience sexual harassment in the workplace at least once every week. These occurrences remain largely underreported.

Fear of reprisal or professional retaliation often keeps victims silent, allowing toxic environments to persist.

Such environments not only harm individual well-being but also discourage women from fully participating in the workplace. This requires clear reporting mechanisms, confidential complaint systems, and strict enforcement of anti-harassment policies.

Economic inequality

Fairness in the workplace is also inextricably linked to economic equality. While employment rates for women have improved, the gender wage gap remains a stubborn fixture in many sectors.

Data from WEF Global Gender Gap Report 2024 shows that women continue to earn significantly less than men for similar work. Globally, this gap sits at approximately 20%.

In the Philippines, the disparity is even more pronounced in specific contexts. According to a 2023 LinkedIn report, women in the Philippines earn only 78% of what their male counterparts earn.

This gap widens drastically in rural areas, where women鈥檚 earnings plummet to just 43% of men鈥檚 wages.

As United Nations Philippines points out, this discrepancy is not a reflection of ability, but rather 鈥渁 symptom of a system that allows such inequality to exist.鈥�

The UN emphasizes that achieving equality is 鈥渘ot a favor鈥� granted to women, but a fundamental right that must be addressed.

These disparities are often tied to structural barriers such as occupational segregation (funneling women into lower-paid roles), the care gap (unequal distribution of unpaid domestic work, which falls disproportionately on women), and promotional biases.

Redefining work-life balance and leadership

For many women, the professional climb is hindered by the double burden of unpaid caregiving responsibilities. Without supportive policies like parental leave for both parents and accessible childcare, women are forced to limit their professional opportunities to meet domestic demands.

When companies recognize caregiving as a shared social responsibility, they can create a culture where employees can thrive without sacrificing their family commitments.

Furthermore, leadership representation remains a critical area for growth. Despite making up 41.9% of the global workforce, women only hold 32% of leadership positions in tech and media, while making up 14% of the overall science, technology, engineering, and mathematics (STEM) workforce.

This occupational segregation keeps women overrepresented in lower-value, less-skilled, and lower-paid positions, keeping them from advancing.

While over 100 legal reforms were passed from 2019 to 2024 to reduce discrimination, the global workforce participation has stagnated below 50%.

Increasing women鈥檚 representation in leadership not only promotes equity but also improves organizational decision-making.

Culture and commitment

Education and organizational culture are equally important. Workplace training programs on gender sensitivity, unconscious bias, and diversity can help reshape how employees interact with one another. However, training alone is not sufficient if leadership does not actively reinforce inclusive values.

Managers and executives must model respectful behavior and demonstrate that discrimination and harassment will not be tolerated. Cultural change occurs when fairness becomes embedded in everyday practices 鈥� from hiring and performance evaluations to information interactions among colleagues.

In countries like the Philippines, where women make up a significant portion of sectors, creating safer workplaces is intimately tied to broader economic development. When women feel secure and respected in their jobs, they are more likely to remain in the workforce, invest in their skills, and contribute to innovation and productivity.

Progress towards gender equality in the workplace is neither automatic nor inevitable. It is the result of deliberate choices: policies that protect workers, leadership that values diversity, and cultures that treat dignity as non-negotiable.

By committing to these principles, organizations can create environments where women not only participate in the workforce but succeed, lead, and shape the future of work. 鈥� Krystal Anjela H. Gamboa

Its 2025 Women in the Workplace report also finds that women express less interest in promotion than men, despite reporting similar levels of career commitment. The report links that gap to unequal access to support systems. Women are less likely to have sponsors or senior leaders who advocate for their advancement. Even when sponsorship exists, promotion rates for women听lag behind听men.

At the entry level, 69% of women say they want a promotion, compared with 80% of men. Among senior leaders, the figures rise to 84% for women and 92% for men. Women also report fewer chances to lead high-impact projects, limited access to leadership networks and weaker signals that advancement is attainable.

Meanwhile, Grant Thornton reports that women hold 33.5% of senior management roles worldwide, up from 32.4% a year earlier and 19.4% two decades ago. However, at the current pace, parity may not be reached until 2053.

At the same time, the World Economic Forum (WEF) estimates full gender parity across sectors could take 123 years. Its latest report also notes a drop in the share of female chief executives to 19% globally, down from 28% a year earlier, pointing to volatility at the highest levels of leadership.

The United Nations Global Compact says systemic barriers, not a lack of talent, continue to limit women鈥檚 rise to leadership. Such barriers include gender bias in hiring and promotion, along with what researchers describe as 鈥渟econd-generation bias,鈥� tied to听perceptions听of leadership style.听听

Women also face unequal access to high-visibility roles that often lead to executive positions, workplace structures that do not account for caregiving responsibilities, and underinvestment in women-led sectors.

Consequently, emerging workplace trends may deepen disparities. Artificial intelligence-driven hiring tools risk reinforcing bias, while reduced workplace flexibility, including scaled-back remote work, can disproportionately affect women.

Advancing parity

The Philippines ranks among the top performers globally on gender equality, placing 20^th out of 148 economies in WEF鈥檚 2025 Global Gender Gap Report. The country posts a gender parity score of 78.1%, up from 77.9% a year earlier, making it the most gender-equal economy in Asia.

In business, women account for 44.5% of senior management roles in 2026, up from 43% the previous year, based on data from Grant Thornton Philippines. The figure places the country second globally in female representation in top management.

Companies report that gender equality programs now form part of corporate strategy. Nearly all firms surveyed, or 98.9%, have diversity, equity and inclusion policies. About 43.5% of employees say they feel treated equally, while 28.2% point to women leaders as visible models for career advancement.

According to the Philippine Commission on Women (PCW), the country maintains about 80% parity in economic participation, supported by wage equality and broader access to employment and entrepreneurship.

However, gaps in other sectors affect the broader leadership pipeline. The PCW reports that education show a slight decline in parity, with boys鈥� enrollment in primary school surpassing that of girls. Health indicators also raise concern as the sex ratio at birth declines.

In governance, women鈥檚 representation in ministerial roles has fallen to 21.1%, down from more than 30% in previous years, while parliamentary representation stands at 38.9%.

Addressing gaps

To address challenges for women, legal frameworks such as the Magna Carta of Women sets out protections and opportunities in health, education, and economic participation. Government agencies also follow the Gender and Development Budget Policy, which requires at least 5% of budgets to fund programs for gender equality, including initiatives that support women entrepreneurs.

In addition, policies such as the National Action Plan on Women, Peace and Security provides a framework that connects women鈥檚 participation in peace-building with economic inclusion.

The Department of Trade and Industry leads several initiatives aimed at building women-led enterprises, with support tailored for overseas Filipino workers and repatriated women.

In rural areas, the Women Go Project, backed by the European Union, works with women in protected zones. Participants develop eco-friendly livelihoods, including fashion products made from recycled materials.

At the same time, organizations like KUMARE Inc. provide financial services alongside skills training and education support. The group has expanded into a network that also offers mentoring in household financial management.

Speaking at the 70th session of the United Nations Commission on the Status of Women, President Ferdinand R. Marcos, Jr. said women must take part in decision-making across sectors, including business.

鈥淲e cannot hope to solve the great challenges of our time if half of our humanity is excluded from shaping those solutions. Women must be present wherever decisions are made 鈥� in government, in business, in science, in diplomacy, and in peacebuilding. The Philippines stands ready to work with all nations to advance this cause,鈥� he said. 鈥� Mhicole A. Moral

For some Filipinos, retirement carries the promise of stability, where daily needs no longer depend on a paycheck. Yet for others, the same moment brings uncertainty, as savings stretch against rising costs and the absence of steady income.

Such听divide听traces back to how early and how deliberately a person prepares. According to financial experts, structured savings is听a good way听to build stability over time. In that sense, the Personal Equity and Retirement Account, or PERA, is a government-backed retirement program that urges Filipinos to treat retirement as a long-term goal.

Under Republic Act No. 9505, PERA serves as a voluntary retirement savings account with tax incentives. It is not an investment product by itself, but a framework that allows individuals to place funds into approved investment instruments.

The account can hold various investment products approved by regulators, including unit investment trust funds, mutual funds, annuities, insurance pension products, and government securities.

Moreover, contributors听retain听ownership of their funds and earnings, while administrators oversee compliance and reporting.

鈥淧ERA is best seen as a personal retirement account that complements SSS, GSIS, employer retirement plans, and personal savings. It gives Filipinos a dedicated and tax-advantaged way to save and invest for retirement,鈥� said Raymund Benedict C. Zalamea, President and Chief Executive Officer of E.M. Zalamea Actuarial Services.

Recognizing long-term value

PERA鈥檚 appeal lies in its tax treatment. Contributors receive a 5% income tax credit on annual contributions, subject to limits set by law. Investment income earned within the account is tax-exempt, and qualified withdrawals upon retirement are also free from taxes.

鈥淸PERA] encourages people to treat retirement as a real financial goal that requires long-term planning and discipline,鈥� Mr. Zalamea noted.

The account also carries legal features tied to long-term planning. Under the law, PERA assets are kept separate from other assets and are not treated as part of the contributor鈥檚 estate for certain purposes, which may support estate planning.

However, Mr. Zalamea said PERA is designed for long-term use, which may limit liquidity.

鈥淭hey should consider liquidity needs, time听horizon, and risk tolerance,鈥� he explained. 鈥淚f the money is for long-term retirement, PERA is worth considering.鈥�

Withdrawals before age 55 and before completing at least five years of contributions may lead to penalties, including the return of tax incentives. Exceptions apply in cases such as prolonged hospitalization or permanent disability.

These rules, while restrictive, may help contributors stay focused on retirement goals by reducing the temptation to withdraw funds early.

Starting and managing a PERA account

Opening a PERA account starts with defining personal financial goals, capacity to听save听and investment听horizon. Accredited administrators guide contributors through suitability assessments and match them with eligible investment products.

鈥淎 saver should first understand his or her goals, financial capacity, and time听horizon. A good administrator platform should then guide the person through the process, including the client suitability assessment, and help match investment options to the saver鈥檚 risk profile and level of understanding,鈥� Mr. Zalamea said.

Contributors may听maintain听up to five accounts but must work with a single administrator. They may also appoint an investment manager to handle decisions on their behalf.

Mr. Zalamea added that consistency听remains听one of the most听important factors听in building retirement funds. As such, contributors should treat PERA contributions as part of a fixed financial plan rather than an occasional decision.

鈥淭he best approach is to treat PERA contributions as part of a regular financial plan, not something funded only when there is extra cash,鈥� he explained. 鈥淓ven modest but consistent contributions can grow meaningfully over time because of compounding.鈥�

This approach, he said, helps individuals听maintain听steady contributions even during periods of financial pressure.

Expanding awareness and access

Despite being introduced in 2008, PERA adoption took time as financial institutions developed products and secured accreditation. Broader access recently began to take shape with the rollout of digital platforms.

In 2020, the launch of online PERA services opened the program to more retail investors by allowing account creation and management through digital channels. New entrants, including non-bank financial firms, have also begun offering PERA access.

Mr. Zalamea said education and user experience must improve to reach more workers and investors.

鈥淏etter public education and听a better听user experience are both important. PERA must be explained in a practical and relatable way.鈥�

He added that employers could help expand participation by promoting financial wellness programs in the workplace.

鈥淓mployers can also play a major role by promoting financial wellness and PERA awareness,鈥� he said.

As more Filipinos face the limits of traditional pension systems and personal savings, Mr. Zalamea urged an earlier and more structured preparation for retirement. Programs such as PERA听offers听a platform that aligns long-term investment towards clear financial goals.

鈥淥ver time, 鈥淸PERA] can help foster a culture of discipline, long-term thinking, and personal responsibility for retirement readiness,鈥� he concluded.

This article appears on the latest 大象传媒 In-Depth’s special edition with the Trust Officers Association of the Philippines for Trust Consciousness Week. To get your free copy, go to .

Spotlight is 大象传媒鈥檚 sponsored section that allows advertisers to amplify their brand and connect with 大象传媒鈥檚 audience by publishing their stories on the 大象传媒 Web site. For more information, send an email to听online@bworldonline.com.

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For many Filipinos, retirement planning is shaped less by financial products and more by social expectations. The country鈥檚 strong family culture has traditionally meant that aging parents could rely on their children or extended relatives for support in later life.

Formal retirement planning often takes a secondary role, with many workers depending primarily on state pensions such as those provided by the Social Security System (SSS) and the Government Service Insurance System (GSIS), supplemented by whatever personal savings they could set aside during their working years.

鈥淭raditionally, many Filipinos expect their children or extended family to support them in old age, reflecting strong family-oriented culture,鈥� said Trust Officers Association of the Philippines (TOAP) Investor Relations & Education Director Patricia Lei S. Alvarillo, who is also First Vice-President and Head of the Retail Accounts Department at BDO Unibank鈥檚 Trust and Investments Group.

But that model is gradually shifting. Rising living costs, longer life expectancies, and economic shocks in recent years have pushed more Filipinos to reconsider how they prepare for retirement. Increasingly, workers鈥攑articularly among the middle class and younger generations鈥攁re seeking their own paths toward financial independence.

鈥淢ore Filipinos now want financial independence in retirement to avoid becoming a burden to their children.听听This听represents听a cultural shift toward individual听financial responsibility, especially among middle-class and younger workers,鈥� Ms.听Alvarillo听noted.

Indeed, a growing number of Filipinos today are showing growing confidence in saving and making early financial decisions, in part due to the rise in accessibility of digital banks in the country.

According to a survey by the Digital Bank Association of the Philippines (DiBA听PH), the country rose to 62 this year from 56 in 2024 on the Financial Health Index, which measures the four key areas of financial wellness鈥攖hat is, financial proficiency, behavior, security, and freedom. This has moved the country into the 鈥済ood鈥� range of the index, from听a previous听鈥渓ow鈥�.

Financial confidence among Filipinos has risen along with it, as more Filipinos now report having emergency savings, with 73% saying they have money set aside. Most respondents, however, said their savings would last only up to one month.

Sun Life Asia鈥檚 latest Financial Resilience Index echoed similar results, showing increased short-term confidence among Filipinos, despite persistent challenges in long-term planning and resilience. The study found that 66% of Filipinos feel financially secure at present, jumping from the previously recorded 45%. Furthermore, confidence in managing monthly finances also rose from 57% to 69%, suggesting improved short-term financial resilience.

Looking long-term, however, confidence dipped, with only 64% feeling capable of meeting future goals, down from 72%. According to the survey, one in three Filipinos say that, in case of income loss or illness, they would not be able to sustain themselves for more than three months without external support. This vulnerability is more pronounced in younger respondents based in rural areas, as the demographic has limited emergency savings and lower access to financial tools.

Security听seems to be听the main issue on Filipinos鈥� minds. A separate survey conducted by Metropolitan Bank & Trust Co. found that 21% of 1,200 respondents save听mainly to听build an emergency fund or prepare for future needs. In Metro Manila, 23% of Filipinos say financial stability is their top concern.

Ms. Alvarillo attributed this behavioral shift to significant shocks like the pandemic, which reshaped how many Filipinos thought about money, savings, and retirement.

鈥淚t acted as a financial 鈥榳ake-up call鈥� changing behavior in both short-term survival decisions and long-term financial planning.听听Some Filipinos realized that they need to keep some liquid assets for emergency purposes,鈥� she said.

Filipino Gen Z听in particular are听approaching money differently from their elders, with habits reshaped by technology, rising living costs, and exposure to global financial trends.

Organizations such as TOAP are playing an increasingly visible role in strengthening retirement planning in the country. Trust officers and fiduciaries serve as professional stewards of client assets, managing pension funds, investment portfolios, and retirement accounts听in accordance with听strict fiduciary standards.

Their work often involves designing diversified portfolios that combine traditional bank deposits with investment instruments such as bonds, equities, and managed funds, calibrated to a client鈥檚 time horizon and risk tolerance.

These services are especially important in a context where many workers are recognizing that state pension systems like the SSS and the GSIS may not be sufficient on their own to sustain retirement needs, as Ms.听Alvarillo听points out.

鈥淢any Filipinos still hold misconceptions about retirement planning, which often leads to insufficient preparation for old age.听听These misconceptions are usually shaped by culture, optimism about future income, or lack of financial planning,鈥� she said.

Trust entities work closely with the听Bangko听Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission to strengthen governance frameworks while modernizing financial services. These efforts include improving digital onboarding and administration for retirement products such as the Personal Equity and Retirement Account (PERA), which allows Filipinos to build tax-advantaged retirement savings through professionally managed investment options.

鈥淭he financial literacy provided by various trust entities and the BSP is actually helpful in addressing these gaps,鈥� Ms.听Alvarillo听noted.

As Filipinos increasingly seek financial independence in later life, the trust industry鈥檚 role as both asset manager and financial educator is becoming central to building a more resilient retirement landscape.

This article appears on the latest 大象传媒 In-Depth’s special edition with the Trust Officers Association of the Philippines for Trust Consciousness Week. To get your free copy, go to .

Spotlight is 大象传媒鈥檚 sponsored section that allows advertisers to amplify their brand and connect with 大象传媒鈥檚 audience by publishing their stories on the 大象传媒 Web site. For more information, send an email to听online@bworldonline.com.

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Economists and financial analysts听saw听a听shock听early this year when听the听Philippine Statistics Authority (PSA) reported on that the fourth-quarter gross domestic product (GDP)听for 2025 only听expanded by 3%,听compared to听5.3% in the fourth quarter of 2024,听and the revised 3.9% print in the third quarter of 2025.听This pulled the overall economic growth for听2025听down to听4.4%听from the government鈥檚听5.5%-6.5%听target, and听much weaker than the 5.7% growth in 2024.

Most reports attribute the slowdown to the massive corruption scandal last year that continued to weigh on government spending, investments and鈥痗onsumer spending.

Amid this backdrop, alongside the historically torpid growth of the Philippine Stock Exchange听(PSE), can there be a case for 2026 becoming a bullish year for Philippine equities?

Answering this question is the theme of 大象传媒 Insights Stock Market Outlook 2026: 鈥淭he Bull Case for 2026: Value, Yield, and the Governance Dividend.鈥�听

The PSE index (PSEi) closed the final trading day of last year down 7.29% from end-2024 levels, hovering stubbornly around the 6,000 mark for much of the fourth quarter. While the broader all-shares index showed pockets of resilience, the benchmark鈥檚 decline captured what many participants described as a difficult stretch for local equities: economic headwinds, cautious capital flows, and governance concerns that weighed heavily on investor sentiment.

However, economic managers are targeting 5% to 6% growth this year, and early 2026 trading sessions have shown tentative momentum, with the index pushing past its previous low-6,000 resistance.

In his keynote address,听Philippine听Securities and Exchange鈥疌ommission听(SEC)听Chairperson Francis Ed. Lim听framed the bull case for 2026 as a matter of confidence.听While external shocks such as global rate cycles, geopolitical tensions, and commodity volatility remain beyond domestic control, he argued that what regulators can control are the rules that shape investor trust: predictability, transparency, and firm enforcement.

鈥淲e cannot control the headlines. What we can control is what capital听ultimately prices听in: clear rules, predictable timelines, and firm enforcement,鈥� he said.

He outlined reforms at the SEC听aimed at making capital markets 鈥渆asier to access, easier to comply with, and easier to trust.鈥�

These include firm processing timelines for applications, automatic approvals upon lapse of review periods (subject to post-audit), expanded digital incorporation through the OneSEC portal, faster turnaround for public offering registrations, and extended shelf registration validity. Cost reductions were also emphasized, particularly for micro, small, and medium enterprises (MSMEs), through discounted registration and securities filing fees, higher audit thresholds, and simplified compliance requirements.

Beyond streamlining processes, the SEC has sought to widen capital channels. Mr. Lim highlighted sector-specific capital-raising initiatives (i.e., agriculture, real estate, power, hospitals) and amendments strengthening the real estate investment trust (REIT) framework, including the expansion of eligible infrastructure assets and longer reinvestment periods. Efforts to enhance liquidity, such as improving securities borrowing and lending and expanding repo market participation, were also presented as part of these structural reforms.

All these is to create an accountable, accessible, and robust bedrock in which Philippine companies can build upon with confidence.

鈥淟iquidity, transparency, participation 鈥� these are not abstract ideas. They are the engines of sustainable capital formation,鈥� he said.

鈥淭he test is not whether markets can rally on good days. The test is whether confidence holds when conditions turn.鈥�

Markets and trust

The first panel moved beyond routine forecasts and into a deeper issue: what听ultimately sustains听market growth?

Sun Life Investment Management and Trust Corp. President Michael Enriquez pointed to the paradox that has long defined Philippine equities.

鈥淭he Philippines has been outperforming the US equity market,鈥� he noted, highlighting recent relative gains. Yet the valuation story remains complicated.

At present, the Philippines trades at a trade discount compared with many global peers. This could appear to be an opportunity. Cheap markets often attract investors seeking undervalued assets.

But discounts are rarely accidental.

鈥淭he Philippines is trading at a steep discount and we have recognized that. But it has to be taken relative to earnings potential,鈥� Mr. Enriquez explained.

Even compared with other discounted markets, the Philippines faces stiff competition. As Mr. Enriquez听observed, 鈥淟ike China and Taiwan,听they鈥檙e听also cheap, but their earnings potential is much higher than [the] Philippines. There are other markets competing with [the country],听that鈥檚听why we need to have a compelling reason to attract investors.鈥�

Investors, whether domestic or foreign, allocate capital based not only on projected returns but also on the reliability of the system in which those returns will be generated. Transparency, regulatory consistency, and institutional accountability are not mere peripheral issues; they are central determinants of whether capital flows in or stays away.

The challenge, then, is more than simple growth. It is听conviction.

When听bad news听signal opportunity

For COL Financial Group鈥檚 FVP, Corporate Strategy and Chief Investor Relations Officer April Lynn Lee-Tan, moments of pessimism in the market can paradoxically create opportunities.

鈥淭here must be a change in mindset 鈥� when everything looks bad, that鈥檚 when we should be investing,鈥� she encouraged.

Market cycles often exaggerate sentiment. Fear pushes prices downward, sometimes beyond what fundamentals justify.

In the past, governance reforms were often seen as regulatory obligations. Today, they are increasingly recognized as strategic advantages. Companies that demonstrate transparency and accountability tend to attract more stable investor interest and enjoy stronger reputations in international markets.

Still, Ms. Lee-Tan acknowledged that Philippine equities face a structural problem: growth that is steady but rarely spectacular: 鈥淎 lot of companies are growing but they鈥檙e growing slow. If you look at the index, it hasn鈥檛 gone anywhere. But if you look at the constituents, it has gone up a lot.鈥�

Corporate leaders have increasingly adopted global standards in governance, transparency, and sustainability, recognizing that investor expectations have evolved.

In this sense, the private sector is gradually becoming a driver of governance improvements, even when public institutions lag behind.

Corruption as an investment risk

In financial analysis, risk is often quantified in percentages: currency fluctuations, interest-rate movements, or geopolitical shocks. Yet corruption functions as a different kind of risk 鈥� less easily measured but equally consequential.

During the forum, the effects of corruption were framed not only as a political concern but also as an economic allocation problem.

When corruption distorts decision-making within institutions, resources are directed toward projects that maximize private gain rather than public value. This misallocation undermines productivity, erodes investor confidence, and听ultimately constrains听growth.

For investors evaluating emerging markets, governance indicators often weigh as heavily as macroeconomic fundamentals.

As Mr. Enriquez pointed out, 鈥淚magine as a foreign investor looking at the Philippines and [the government] can鈥檛 get [their] act with just flood control. Why would I invest in you?鈥� Even strong demographic advantages or natural resources cannot fully compensate for institutional uncertainty.

In global portfolios, the Philippines occupies only a small portion of capital allocation. Investors evaluating emerging markets can choose among dozens of destinations. In such an environment, governance matters.

More importantly, public awareness of governance issues has grown significantly. Conversations about corruption, once confined to political debates, are increasingly taking place within business and financial communities.

Investors, analysts, and corporate leaders now openly acknowledge the importance of institutional integrity in shaping economic outcomes.

The Philippines, like many developing countries, finds itself navigating this tension. In theory, its fundamentals are promising: a young population, expanding digital infrastructure, and integration into regional supply chains. But persistent governance concerns continue to shape how international investors assess the country鈥檚 long-term trajectory.

Markets, after all, operate on expectations.

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On infrastructure听and political resolve

When government spending was discussed, infrastructure was emphasized. Economists have long emphasized infrastructure investment as a key driver of development. Roads, bridges, and transport systems reduce costs and increase productivity.

Yet Rizal Commercial Banking Corp.鈥檚 Chief Economist Michael Ricafort offered a much nuanced explanation for recent economic slowdowns.

鈥淲hat really slowed the economy in the first place is the government underspending on infrastructure because they don鈥檛 want to put in effort to prevent corruption from happening,鈥� Mr. Ricafort said.

Large infrastructure programs can stimulate economic activity, but they also carry corruption risks. If oversight mechanisms are weak, funds may be misallocated or delay projects.

With these challenges, governments sometimes choose caution 鈥� reducing spending rather than strengthening accountability systems.

Underinvestment in infrastructure can slow economic momentum, particularly in developing economies where connectivity听remain听significant.

Ultimately, governance reforms depend on political will.

鈥淎ll reforms related to alleviate corruption [are] anti-corruption measures. It all starts and ends with good governance and timely justice system. Maybe that鈥檚 the missing element,鈥� Mr. Ricafort emphasized.

Economic institutions can design frameworks and implement safeguards, but sustained progress requires leadership committed to transparency and accountability. Without that commitment, reforms risk becoming symbolic gestures rather than transformative changes.

Investors understand that the strength of the economy is inseparable from the strength of its institutions. When governance improves, capital flows more freely, innovation accelerates, and growth becomes more inclusive.

Conversely, when corruption persists, even strong economic fundamentals struggle to translate into sustained prosperity.

The future of Philippine markets

The question facing the Philippines today is not whether growth is possible. The country has already听demonstrated听that it is.

The deeper question is whether growth can be sustained, broadened, and anchored in institutions strong enough to withstand political cycles and economic shocks.

For Philippines, the path forward may require confronting uncomfortable truths about corruption and institutional weaknesses; but it also offers opportunity.

For every reform that strengthens transparency, every policy that improves accountability, and every technological innovation that reduces bureaucratic opacity contributes to a more credible economic system.

And credibility, in the language of markets, is the most听valuable asset听of all.

If optimism persists among investors, it is not because the challenges are small. It is because the potential听remains听large; and because the direction of reform, however gradual, still points toward a more accountable and resilient economy.

On听REITs听as a burgeoning sector

The second panel of the forum examined Philippine REITs within the context of income investing and shifting rate cycles.

Jesus Mariano P. Ocampo, president and chief operating officer of Investment and Capital Corporation of the Philippines, said eight listed REITs have reached a combined market capitalization of more than P430 billion as of mid-February 2026. On a trailing 12-month basis, they posted a weighted average dividend yield of about 6.04%.

The listed trusts cover commercial offices,听retail听and hospitality properties. Some own the land beneath their assets while others听operate听under long-term leases. The market also includes energy-focused REITs, one tied to renewable energy and another to traditional energy assets.

Since their initial public offerings (IPOs), several REITs have infused additional properties to raise distributable income and support dividends.

According to Mr. Ocampo, most of the trusts went public when Bangko Sentral ng Pilipinas (BSP) rates were at record lows. When rates rose toward the end of the previous administration and into the current one, REIT prices fell below IPO levels as higher Treasury bill and bond yields drew investors toward safer instruments.

鈥淧eople will go to the best yield so REITs have to catch up and by that prices have to come down,鈥� he added.

Japhet O.听Tantiangco, research manager at听Philstocks听Financial, presented a study that examined whether interest rates have a statistically significant effect on local REIT prices.

In theory, REIT prices and interest rates move inversely. Higher rates can slow spending, raise capital costs for leveraged听trusts听and alter investor risk premiums. Those dynamics suggest REIT prices should fall when rates rise.

Mr.听Tantiangco鈥檚听study used trading data from January 2023 to February听2026, covering 762 observations. The three-month Treasury yield served as a proxy for policy-sensitive rates,听and the听PSEi听represented market confidence.

The findings showed that for most listed REITs, policy-sensitive interest rates did not have a statistically significant effect on price performance in either the short run or the long run. REIT price performance often had an inverse relationship with its own previous-day movement, which听Mr.听Tantiangco听attributed in part to profit taking.

鈥淭he听general market performance or investor confidence听have听a statistically significant direct relationship with听REIT听performance in the short run but not in the long run,鈥� he explained.

Mr. Tantiangco said this suggests other factors, including asset expansion and sector exposure, may carry greater weight.

John Tristan Guillermo D. Reyes, president and director of BDO Securities, pointed to August 2024 as a turning point, when the BSP听began cutting policy rates from a peak of 6.5%.

Since then, REITs have outperformed the broader market on a total return basis.听Some listed REITs posted double-digit gains, with total returns ranging from the high teens to above 40% for select names.

鈥淟ower discount rates translate to higher valuations and stronger credit conditions, [as it] helps听both sponsors and听tenants听the听REIT听landscape. The听REIT听landscape is also evolving after amendments to the听REIT听law,鈥� he explained.

He added that in an environment of softer growth and subdued inflation, investors tend to favor income visibility and stability.

鈥淚n this era of low rates, the opportunity is not just about chasing yield, it’s about identifying which REITs in property segments offer the most durable cash flow, strongest tenant profiles, and best protection against future rate volatility,鈥� said Mr. Reyes.

Alessandra听Araullo, chief investment officer听of听ATRAM听Group, said investors must look beyond headline yields.

鈥淔alling rates alone do not automatically make REITs attractive,鈥� Ms. Araullo said.

With the 10-year government bond yielding around 6%, and after a 20% tax translating to听roughly 4.8%, she said some REITs offer only a narrow premium after accounting for the 10% tax on dividends.

She听added that allocators often look for a spread of about 200 basis points over the 10-year rate before the asset class becomes compelling. A 25-basis-point rate cut alone听may cap near-term upside if spreads听remain听tight.

On the other hand, Ms. Araullo cited uneven property recovery. Prime commercial business district offices and flagship malls show resilience, while offices and some residential segments remain weak.

鈥淎t this juncture,听it’s really all about selectivity and asset quality,听and that’s what’s going to determine an investor’s success in听REITs,鈥� she explained.

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Opening a new chapter in REITs

Recent amendments by the SEC听expanded the definition of income-generating real estate assets eligible for REIT inclusion. The revised rules now cover toll roads, data centers, fiber optic networks and ports, including airports and seaports.

Mr. Ocampo said the changes pave the way for infrastructure-themed REITs. Infrastructure assets often have longer concession periods and more predictable revenue streams.

The SEC also extended the period for reinvesting proceeds to two years from one year and allowed greater flexibility in using funds, including debt repayment or acquisition of debt securities tied to real estate or infrastructure projects.

Ms.听Araullo听said the two-year window gives sponsors more time to deploy capital and may improve the quality of asset infusions.

鈥淪ponsors are not rushed to deploy just for the sake of meeting the deadline. For investors, the combined effect is a larger pipeline of potential REIT assets and better quality injections.鈥�

When asked which property types could see faster adoption, Mr. Tantiangco cited infrastructure linked to telecommunications, noting investor interest in assets connected to artificial intelligence trends.

鈥淥nce they are introduced into the market, there could be听clamor听with听respect to the investors, because this is the trend right now.听Investors are going to look at where听can听they can听get closest to the global trend,鈥� he explained.

Previously, the sector leaned heavily on commercial and retail property, with limited exposure to other industries. A more diverse lineup, Mr.听Tantiangco听said, gives investors options aligned with varying risk appetites.

For Mr. Reyes, infrastructure assets with inflation-linked or consumer price index-based tariff adjustments may offer built-in dividend growth.

He also noted that exposure may extend beyond traditional malls and offices to infrastructure and data centers, diversifying revenue streams and supporting dividend growth over the medium to long term.

On whether regulatory changes will immediately drive more listings, Mr. Ocampo said companies may begin preparations this year, but infrastructure assets are expected to face regulatory hurdles.

Mr.听Tantiangco听said listing decisions also hinge on market confidence and participation. He pointed to fluctuations in total traded value and risk appetite as factors issuers will watch.

鈥淲e’ve been seeing a decline in net value turnover in the听past听days,听hoping that听we’ll听see a reversal. If we really see strong market participation, which signifies that risk appetite is returning in the market, then perhaps we will see more listings with respect to the听REITs.鈥�

Meanwhile, Ms. Araullo described the rule changes as structural, adding that the environment for a broader REIT market is taking shape despite short-term sentiment challenges.

鈥淲e can expect the fruits of it to show up maybe in the next two to three years,鈥� she said.

Developing a maturing market

Panelists agreed that companies considering conversion or listing must show operational strength. For instance, net operating income should outpace capitalization rate expansion.

According to Mr. Reyes, investors should study the sponsor鈥檚 asset pipeline and sector exposure, whether in offices, tourism, energy or infrastructure. The ability to inject quality assets over time supports dividend growth.

Still, Mr.听Ocampo warned that asset infusions must be accretive to dividend per share. Dilutive transactions could pressure payouts even if total assets rise.

Macroeconomic conditions, according to Mr. Tantiangco, still influence performance. While his study found no statistically significant link between interest rates and REIT prices in recent periods, fundamentals such as expansion pace and sector resilience play a larger part.

鈥淲e still have to look at the general economy. The general economy still has a say on how REITs performed,鈥� he added.

On dividend sustainability, Ms. Araullo listed occupancy trends, rental revisions, payout ratios and debt refinancing risk as key indicators. She also cited same-property net operating income growth and the presence of nonrecurring income that temporarily props up dividends.

听鈥淢arkets have moved ahead, priced in听lower听rate environment. I think听it’s听really the structural changes or the policies to yield better dividends for the asset class,鈥� she explained.

This 大象传媒 Insights forum was presented by 大象传媒 Corp. and was sponsored by BDO Capital, DigiPlus, SM Investments Corp., and SM Supermalls; with the support of Asian Consulting Group, Asia Society of the Philippines, British Chamber of Commerce of the Philippines, French Chamber of Commerce and Industry Philippines, Management Association of the Philippines, Philippine Chamber of Commerce and Industry, Philippine Franchise Association, Philippine Retailers Association, official venue partner Lanson Place Mall of Asia, Manila, and media partner The Philippine STAR.

Take artificial intelligence (AI). Initiatives that only last year were deemed visionary and future-proof are now being put into question, as many chief executives all over the world are starting to slow down and reassess their bets on AI.

While last year鈥檚 PricewaterhouseCoopers (PwC) data showed 56% of leaders attributing efficiency gains to AI 鈥� with roughly a third reporting growth in profitability and revenue 鈥� this year, only 12% say AI has delivered both cost and revenue benefits.

The latest edition of the PwC Global CEO Survey interviewed 4,454 CEOs in 95 countries and territories from Sept. 30 to Nov. 10, 2025. The report found that only three-in-ten executives feel confident about revenue growth in 2026 as most struggle to turn AI investment into tangible returns, the lowest outlook in five years. The AI hype of previous years has matured into a polarized landscape: a small group of frontrunners is seeing tangible financial returns, while the majority are struggling to scale technology amid rising geopolitical friction.

Moreover, countries all across the world are reconsidering entire energy systems, transportation corridors, industrial zones, and data center investments, essentially 鈥渞edrawing the global map of infrastructure and influence.鈥� More than half of CEOs expect to make international investments in the year ahead, with notable momentum toward India and the Middle East.

鈥淰olatility is the baseline rather than the exception,鈥� PwC Global Chairman Mohamed Kande wrote for the World Economic Forum.

鈥淔or leaders, the question is not simply where to allocate capital. The deeper consideration is how this global rebuilding will reshape competitiveness and opportunity in the decade ahead. Countries and companies that rethink their operations, risk management and business models will be the ones that pull ahead.鈥�

The polarizing impact of AI

Regarding AI, success appears to vary by firm. According to the EY CEO Outlook 2026, which surveyed 1,200 executives, the CEO Confidence Index declined from 83 to 78.5, reflecting growing unease about the pressures shaping today鈥檚 business landscape. However, the vast majority of CEOs in the survey report that their AI initiatives have met or exceeded expectations, with only a small minority (3%) falling short of targets.

The EY report concludes that AI is becoming an increasingly reliable driver of productivity, revenue growth, customer experience and operating model efficiency, with the biggest value gains being won by the 20% of organizations whose AI investments are already delivering significantly above-expectation returns.

鈥淐EOs will need to treat AI as a multi-year strategic pillar 鈥� embedded in workforce planning, capital allocation, and operating model design. With many early benefits in sight, focus is likely to shift from proliferating pilots to scaling what works, prioritizing depth over breadth by embedding AI across critical value chains to capture enterprise-wide productivity,鈥� the report said.

This suggests intensifying competition across all industries, as laggards risk falling further behind while AI adopters push for accelerated investment cycles and bolder transformation agendas, using the technology not only to optimize current operations but also to reshape products, services, and business models.

In contrast, the 2026 PwC survey found that only 33% of CEOs interviewed reported gains in either cost or revenue due to AI, while 56% say they have seen no significant financial benefit to date.

This data presents a paradox of perception, suggesting that while AI is fulfilling its role as a productivity tool supercharging organizational efficiency, it has yet to become the revenue engine many hoped for.

PwC points to a growing divide between companies piloting AI and those deploying it at scale, with CEOs reporting both cost and revenue gains two to three times more likely to say they have embedded AI extensively across products and services, demand generation, and strategic decision-making.

鈥淥rganizations that move from pilots to enterprise-level integration will capture disproportionate value,鈥� Mr. Kande noted.

According to Teneo Vision 2026 CEO and Investor Outlook Survey, which includes the views of more than 350 global public company CEOs and 400 institutional investors representing approximately US$19 trillion of company and portfolio value, for the majority of CEOs, the gains from AI initiatives will take much longer to actualize. As much as 84% believe that positive returns will take longer than six months to achieve.

However, 53% of investors surveyed expect returns within six months, exerting pressure on executives to deliver on their promised gains.

An area where AI is already seeing an impact on is the job market, where most CEOs expect it to drive a near-term increase in hiring across all levels in 2026. Teneo鈥檚 survey found that businesses are reshaping their workforces to accelerate returns on investment from an efficiency, cost and commercial perspective, with AI enablement and upskilling billed as top talent priorities.

87% of CEOs included in Teneo鈥檚 survey feel confident that their organizations are prepared for future technological disruption, but are uncertain about how future leaders will be able to keep pace with tech advancements. Agility and creativity, they believe, will be the most important traits for a new generation of CEOs.

The risks of overcaution

The global CEO sentiment has shifted from experimentation to disciplined reinvention. Conglomerates are at a disadvantage in this landscape, as change at the scale they are operating on is slow, expensive, and fraught with regulatory friction.

Earlier this year, xAI鈥檚 Grok was banned in the Philippines alongside several others in the ASEAN because its online safety measures did not meet local standards. All over the world, especially in the European Union and China, governments are tightening regulations over the new technology, putting early adopters in the crosshairs of regulators. This can put many corporate initiatives regarding AI implementation on hold.

Yet, the window of opportunity regarding AI is undoubtedly shrinking. External and cyber risks can compound as tariffs, regulatory oversight, and AI-powered cybercrime reduce the margin of error for businesses worldwide. If an organization is not using AI-powered cybersecurity today, they expose themselves to more powerful, more sophisticated cyber risks.

According to the EY report, geopolitical dynamics are creating challenges that require adjustments in how the business operates.

鈥淧erhaps most significantly, as data becomes both a strategic asset and a point of geopolitical friction, new regulations and restrictions affect how companies collect, transfer and utilize information,鈥� the report found.

A nearby example is how countries like Indonesia, Malaysia, and Vietnam have recently passed laws or guidelines emphasizing AI sovereignty, or the ability of a nation or organization to exert full control over its own AI stack, including the data, the data centers, and the models themselves. Additionally, EY also pointed out that firms wary of sharing sensitive intellectual property across borders are creating an increasingly splintered digital ecosystem that raises operational costs and slows innovation diffusion even within companies.

Mr. Kande sums up the dilemma facing executives who are still holding out on AI today.

鈥淚n periods of rapid change, the instinct to slow down is understandable 鈥� but it鈥檚 also risky,鈥� he said. 鈥淭he value at stake across the global economy is increasing, and the window to capture it is narrowing. The companies that succeed will be those willing to make bold decisions and invest with conviction in the capabilities that matter most.鈥� 鈥� Bjorn Biel M. Beltran

At the same time, the World Economic Forum (WEF) describes uncertainty as the 鈥渄efining theme鈥� of the global risks outlook in 2026. Based on its Global Risks Perception Survey, 50% of respondents expect a turbulent or stormy global outlook over the next two years. That share rises to 57% over the next decade. Only 1% foresee a calm outlook across both time horizons.

Fragile economy

The World Bank cautions that global growth could falter if trade tensions worsen or if financial market sentiment deteriorates. Asset price corrections, fiscal concerns and unexpected inflation spikes could further dampen activity.

Geoeconomic confrontation, according to the WEF, ranks as the top risk most likely to trigger a material global crisis in 2026, selected by 18% of respondents. State-based armed conflict follows at 14%.

Economic downturn rises eight positions to rank 11^th. Inflation also climbs eight places to 21^st. Asset bubble burst moves up seven positions to 18^th.

The survey also finds that 68% of respondents expect a multipolar or fragmented global order over the next 10 years, where major and middle powers contest regional rules. Only 6% anticipate a return to a unipolar, rules-based order.

Mounting debt concerns and potential asset bubbles could also usher in volatility, especially if paired with rising geopolitical rivalry. Such pressures, according to the WEF, could heighten volatility for businesses and governments.

Workforce and technological challenges

Think tank The Conference Board鈥檚 C-Suite Outlook for 2026 finds that global leaders worry most about workforce challenges and regulation.

Among specific risks identified are cyberattacks (46.5%), supply chain disruptions (41.6%), and finding qualified workers (37.2%).

In terms of technological risks, the WEF reports that misinformation and disinformation rank second on the two-year outlook. Cyber insecurity ranks sixth.

Adverse outcomes of artificial intelligence show the largest increase in long-term ranking, as it may affect labor markets, societies and global security over the next decade. The risk moves from 30^th place in the two-year outlook to fifth place over a 10-year horizon.

Environmental risks and social polarization

While environmental risks decline in ranking over the next two years, they remain dominant over a 10-year horizon. Extreme weather events rank as the top long-term risk. Half of the top 10 risks over the next decade are environmental in nature.

The WEF links continued extreme weather and climate change to strains on aging infrastructure, supply chains, and electrical grids.

Meanwhile, inequality ranks as the most interconnected global risk for the second consecutive year. The report warns that narratives pitting 鈥渟treets versus elites鈥� deepen disillusionment with governance systems. Hence, the convergence of economic stress and political rivalry places added pressure on public trust and institutional stability.

PHL progress and vulnerability

The Organisation for Economic Co-operation and Development (OECD) notes that the Philippines has posted strong growth and rapid poverty reduction over the past 15 years, supported by macroeconomic stability and social protection.

However, demographic tailwinds are fading and climate risks are intensifying, making long-term income goals more challenging. In fact, the Philippine Institute for Development Studies notes that the country narrowly missed the upper-middle-income country threshold in 2024.

Externally, the country runs a persistent trade deficit as imports outpace exports. Services exports, particularly in information technology and business process management, cushion the gap. Risks include possible tariff escalation in the United States, supply-chain realignments under regional trade agreements and geopolitical tensions.

Beyond macroeconomic indicators, the OECD says sustaining high and broad-based growth will require structural reforms to foster competition, deepen trade and investment openness, improve governance and strengthen incentives for formal job creation, alongside climate mitigation and adaptation policies. 鈥� Mhicole A. Moral