governance – Author Carlo Carrasco

Philippines Reduces Economic Growth Targets Until 2027

January 8, 2026January 5, 2026carlocarrasco

In what is an acknowledgment of slowing growth, the government of the Philippines officially reduced its economic growth targets until the year 2027, according to a news report by BusinessWorld.

To put things in perspective, posted below is an excerpt from the news report by BusinessWorld. Some parts in boldface…

The Philippines trimmed its economic growth targets until 2027, after growth likely slowed to about 4.8% to 5% this year, according to Economy Secretary Arsenio M. Balisacan.

In a briefing on Monday, Mr. Balisacan said the Development Budget Coordination Committee (DBCC) had lowered its gross domestic product (GDP) growth targets to 5%-6% for 2026 and 5.5%-6.5% for 2027. It kept the GDP growth target at 6%-7% for 2028.

The government earlier aimed to achieve 6%-7% GDP growth annually from 2026 until 2028.

This comes after Mr. Balisacan said the economy likely grew by 4.8-5% in 2025. This is much slower than the 5.7% GDP growth in 2024, and below the government’s 5.5-6.5% growth target.

“The emerging number, growth scenario for 2025, is something like 4.8 to 5%,” he said. “But if you achieve 5% for the entire year, because the first three quarters’ average is already 5%, that still puts the economy into one of the fastest growing economies in Asia.”

Economic growth slowed to an over four-year low of 4% in the third quarter, as the flood control scandal affected government spending and hurt business and consumer confidence.

“The developments last year are likely still to be felt this year, although in a diminishing effect, and so we expect growth perhaps in the first quarter or at least in the first half to be still quite not as rosy as we would want it to be,” the Economy chief added.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the government spending this year should be increased somehow so that it will stimulate the national economy to grow more? Do you think investors based overseas are not convince to invest in the country soon?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

Muntinlupa City Government Emphasizes Awards Won In 2025

January 6, 2026January 1, 2026carlocarrasco

Recently in the progressive City of Muntinlupa, the City Government emphasized to the public the numerous awards it won in 2025 relating to good governance, fiscal management, digital transformation and more, according to a Daily Tribune news report.

To put things in perspective, posted below is an excerpt from the news report of the Manila Bulletin. Some parts in boldface…

The local government of Muntinlupa City solidified its standing as a leader in digital transformation and fiscal management in 2025, earning national recognition for its data-driven governance and business-friendly environment under Mayor Ruffy Biazon.

The city was ranked among the top eight local government units nationwide for the efficient use of public funds in October. This fiscal achievement was bolstered by the city’s continued receipt of the Seal of Good Local Governance and the award for Good Financial Housekeeping, which recognize transparency and accountability in the handling of taxpayer money.

Biazon stressed that the city’s success is rooted in its “7K Agenda,” particularly in the areas of economic development and digital innovation. The Philippine Chamber of Commerce and Industry (PCCI) issued a special citation to the city in October for its BESt and SWiT systems — digital platforms designed to streamline business permits and transition city processes to a paperless environment.

“Our goal has always been to make Muntinlupa a smart city where technology serves the people,” Biazon said. “These awards validate our transition toward a more transparent and efficient government.”

In November, the Department of the Interior and Local Government (DILG) presented the city with several Urban Governance Exemplar Awards. Muntinlupa was named a top performer for its Local Council for the Protection of Children and received high marks for its City Council’s legislative performance.

The DILG also declared the city’s anti-trafficking committee “highly functional” and recognized its efforts in peace, order, and anti-drug programs.

Muntinlupa’s reliance on data-driven decisions was also lauded by the Philippine Statistics Authority in September. The city was named the second runner-up nationwide in the Gawad Galing Lokal for its excellence in implementing the Community-Based Monitoring System (CBMS), a tool used to accurately target social services for the most vulnerable residents.

Let me end this post by asking you readers: What is your reaction to this recent development? If you are a resident of Muntinlupa City, do you think the city is moving on the right direction considering the many awards it won in 2025? Do you think Muntinlupa City is bound for stronger economic growth in the next few years?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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For more South Metro Manila community news and developments, come back here soon. Also say NO to fake news, NO to irresponsible journalism, NO to misinformation, NO to plagiarists, NO to reckless publishers and NO to sinister propaganda when it comes to news and developments. For South Metro Manila community developments, member engagement, commerce and other relevant updates, join the growing South Metro Manila Facebook group at https://www.facebook.com/groups/342183059992673

Influential Japanese Business Lobby Calls For Greater Government Role In Issues Related With Foreigners

January 6, 2026January 1, 2026carlocarrasco

As Japan struggles with economic challenges, an aging population, immigration and filling up the gaps of its workforce, an influential business lobby called for a stronger role by the government on issues related to foreign residents, according to a Kyodo News article. It should be noted that new rules regarding foreigners will be announced this month.

To put things in perspective, posted below is an excerpt from the news release of Kyodo News. Some parts in boldface…

Japan’s most influential business lobby has urged the government to show stronger leadership on issues concerning foreign residents and enact a “basic law” on policies related to non-Japanese as they become a growing part of the labor force and society.

The Japan Business Federation called for the establishment of a permanent headquarters led by the prime minister that will compile policies related to foreigners across agencies and ministries, saying a ministerial meeting launched by Prime Minister Sanae Takaichi in November was positive but insufficient.

The federation, also known as Keidanren, pointed out in a set of proposals released in mid-December that issues remain under the current framework regarding the effectiveness of medium- to long-term policymaking.

“A framework in which strong political leadership can be exerted is needed,” the group said.

It highlighted the need for a new ministerial post dedicated to foreigner-related policies with the authority to recommend that other agencies and ministries carry out investigations or formulate new rules.

The federation stressed that Japan is at a “turning point,” with steps to promote the smooth integration of foreign workers and their families into society essential, particularly with regard to education and social services.

With Japan’s population shrinking, the number of foreign residents will likely continue to rise beyond 2030, the group said.

It also noted “public anxiety and a sense of unfairness” in Japan, prompted by media reports that some foreigners were engaging in illegal activities and not complying with rules.

The House of (Councilors) election in July saw increased support for a populist party that campaigned on a “Japanese First” platform.

Takaichi, known for her conservative views, set up the ministerial meeting to demonstrate a stricter approach to foreigner-related issues, saying the government is seeking to “build a safe, secure, orderly, and inclusive society for the (Japanese) people and foreigners living in our country.“

As in a previous set of proposals released in 2022, the federation called for a shift in mindset from “passive acceptance of foreigners” to “strategic acquisition of foreign talent.”

It suggested placing more focus on the quality as well as quantity of foreigners accepted, including clearly defining what kind of human resources the country is hoping to attract from overseas.

Let me end this piece by asking you readers: What is your reaction to this development? Do you think the central government of Japan will be able to come out with new rules on foreigners that will make sense socially and economically?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Japanese Prime Minister Takaichi To Meet With Trump In America

January 4, 2026January 3, 2026carlocarrasco

Japanese Prime Minister Sanae Takaichi will meet again with US President Donald Trump specifically in the United States in the spring, according to a Kyodo News article. The upcoming meeting will also by Takaichi’s first official visit to America as Prime Minister.

For the newcomers reading this, the Prime Minister first met with Trump in Japan last October. The said meeting happened not so long after Takaichi was elected to her position. For the upcoming meeting in the United States, the stakes are high for Prime Minister Takaichi as her nation has been dealing with tension from Communist China.

To put things in perspective, posted below is an excerpt from the news article of Kyodo News. Some parts in boldface…

Japan’s Prime Minister Sanae Takaichi said Friday that she and U.S. President Donald Trump have agreed to work toward meeting in the United States in the spring, with the aim of further strengthening the alliance between the two countries.

Takaichi’s plan to make her first visit to the United States since taking office in October, confirmed during their phone call, comes at a time of strained relations between Japan and China, and ahead of Trump’s possible trip to Beijing in April to meet with Chinese President Xi Jinping.

“At the start of the new year, I consider it extremely significant that I was able to exchange words directly with President Trump and confirm the strong partnership of the Japan-U.S. alliance,” Takaichi told reporters following the call.

Takaichi said she and Trump agreed to promote a free and open Indo-Pacific as well as cooperation among like-minded countries, including in the three-way partnership also involving South Korea.

She said their discussion was mainly about the region, without elaborating as to whether it had anything to do with China specifically.

According to Japan’s Foreign Ministry, the conversation lasted about 25 minutes, during which Trump, who met with Takaichi in October in Tokyo, invited her to visit the United States.

In late December, Takaichi said she was exploring a visit to the United States for another meeting with Trump early in the upcoming year, with Japanese officials proposing late March for her trip to Washington.

Late on Friday night, Takaichi said she had conveyed her congratulations to Trump on the United States marking in 2026 the 250th anniversary of its independence.

She said they agreed this year should also be one that opens a “new chapter in the history of the Japan-U.S. alliance” and that they will further deepen the wide-ranging cooperation and friendly relations between the two countries.

If all goes smoothly, Takaichi’s upcoming trip will coincide with the U.S. capital’s well-known annual cherry blossom festival.

The festival commemorates the 1912 gift of cherry trees from Tokyo to Washington and the longtime friendship between Japan and the United States.

When Takaichi hosted Trump in Japan in late October, the two leaders affirmed their intention to jointly celebrate the 250th anniversary, and she confirmed Japan’s promise to give 250 cherry trees to the United States.

Takaichi and Trump last spoke by phone on Nov. 25, with the conversation taking place after his call with Xi and amid escalating tensions between Tokyo and Beijing over Taiwan.

China has been taking a hard-line stance against Japan since Takaichi suggested earlier that month that an attack on Taiwan could constitute an existential threat to Japan and warrant a response from its forces.

Trump, who also met with Xi in late October during his trip to Asia, has not made his position public on the ongoing tensions between Japan and China, which views Taiwan as its own territory and has not ruled out the use of force to bring the self-ruled island under its control.

Trump has repeatedly said he has good relationships with both Takaichi and Xi.

Let me end this piece by asking you readers: What is your reaction to this development? What kind of developments do you think will manifest after the next meeting of Trump and Takaichi? Do you think the Trump administration will be able to maintain healthy ties with China and Japan even as the tension between the two Asian nations goes on? Do you think there will be more joint military exercises between Japan and America this year?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Philippines Behind Many Southeast Asian Neighbors On International Tourism

January 3, 2026December 29, 2025carlocarrasco

With 2025 already behind us, one has to wonder how the Philippines performed when it comes to attracting foreign tourists and as of this writing, the final statistics have yet to be announced by the government. What is clear is that the Philippines really slumped on international tourism last year and the nation is behind many of its Southeast Asian neighbors, according to a recent news article by VnExpress International.

To put things in perspective, posted below is an excerpt from the news article of the VnExpress International. Some parts in boldface…

Vietnam and Malaysia are rising tourism stars in Southeast Asia thanks to relaxed visa policies and improving infrastructure while Thailand has lost its lead due to border clashes and safety concerns.

Vietnam received its 20th millionth foreign visitor in a year for the first time at the Phu Quoc International Airport on Dec. 15, marking a milestone for its tourism sector. The full-year is expected to exceed 21 million, surpassing the previous record of 18 million achieved in 2019 before Covid.

With its 21% growth rate this year, Vietnam is regarded by the United Nations World Tourism Organization as one of the fastest-growing markets in the world.

Malaysia attracted 28.2 million tourists in the first eight months of this year, a 14.5% increase year-on-year.

The industry will be supported by stronger Chinese tourist arrivals, improving flight connectivity and the government’s ambitious “Visit Malaysia 2026” campaign, according to HSBC Global Research.

“Malaysia is on track to easily exceed its 2025 tourism target of 31.4 million tourists, making it one of the few ASEAN economies to achieve its target.

“We estimate the number of tourists is likely to exceed 40 million.”

This year, both countries have strived to ease visa polices, enhance promotion campaigns and improve airport infrastructure.

Indonesia and Laos have also seen increasing tourist numbers.

Indonesia received over 12.76 million foreign visitors in the first 10 months, a 10% increase, with Malaysia, Singapore, Australia, and India being the leading source markets. Laos received 3.8 million, a 13% increase.

Challenging year for Thailand, Cambodia – Once a tourism powerhouse in Southeast Asia, Thailand has struggled with setback after setback this year.

The crisis began in January as many Chinese tourists canceled their trips to the country following the high-profile abduction of Chinese actor Xing Xing.

Two months later a deadly earthquake in Myanmar that sent tremors across Bangkok caused widespread damage to the tourism industry.

Escalating military clashes along the Thai-Cambodian border also triggered a surge in cancellations across provinces near the fighting. Some countries warned their citizens to postpone traveling to Thailand.

Arrivals as of early December declined by 7% to 30 million. Thailand had received 40 million tourists in 2019 and 35 million last year.

Meanwhile, Cambodia’s reputation took a beating in the eyes of South Koreans due to online scams and the disappearance of hundreds of their fellow citizens who entered that country.

The South Korean government has issued warnings to its citizens to cancel or postpone non-essential travel to the Cambodian capital Phnom Penh and areas like Sihanoukville and Bokor Mountain.

Cambodia attracted only 4.75 million tourists in January-October, a decrease of 11.6%.

The Philippines received 4.7 million foreign visitors in the first 11 months of the year, a 3.02% decline due to significantly lower arrivals from South Korea and China.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the Philippines still has a lot of problems to solve regarding infrastructure, tourism promotions and domestic travel costs before it could become competitive with its Southeast Asian neighbors? If ever the Philippines fails to hit its 2025 foreign tourist arrivals target, do you think the Department of Tourism (DOT) will once again point to tourism revenues as a barometer for success? With its current standing on international tourism, do you consider the 2023-2028 National Tourism Development Plan (NTDP) of the Philippines a failure already?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/and on Instagram athttps://www.instagram.com/authorcarlocarrasco

Prime Minister Takaichi Intends To Strengthen Japan With Reforms

January 2, 2026January 1, 2026carlocarrasco

With countless challenges – both internal and external – affecting Japan every day, Prime Minister Sanae Takaichi is determined to make the nation stronger and more prosperous by implementing reforms, according to a Kyodo News article. The Prime Minister delivered her New Year’s statement.

To put things in perspective, posted below is an excerpt from the news release of Kyodo News. Some parts in boldface…

Prime Minister Sanae Takaichi on Thursday pledged to make Japan “strong and prosperous” by carrying out “necessary reforms” to address various domestic and global challenges.

In her New Year’s statement, Takaichi, who became Japan’s first female prime minister on Oct. 21, said her government is committed to building a nation where younger generations can believe in the future and live in hope.

Takaichi emphasized that Japan faces a shrinking population, rising living costs after decades of deflation, and what she described as “the most severe and complex security environment” since the end of World War II.

Globally, political and economic uncertainties are growing as “the free and open international order is being shaken and hegemonic moves are increasing,” she said, in an apparent reference to China’s escalating military activities and Russia’s invasion of Ukraine.

Takaichi took office after winning the Liberal Democratic Party leadership race in early October, succeeding Shigeru Ishiba, who had announced the previous month that he would resign following the party’s heavy setback in the House of Councillors election in July.

With Takaichi’s Cabinet maintaining high approval ratings — well above those of her immediate predecessors — parliament is set to begin this year’s 150-day regular session on Jan. 23.

Let me end this piece by asking you readers: What is your reaction to this development? Apart from the pending new rules on foreigners, what kind of social and economic reforms do you think Prime Minister Takaichi and her administration will come up with over the next six months? Do you think the government will be able to come up with new policies to encourage married couples to have more children?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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84 Renewable Energy Service Contracts Terminated By DOE Over Failure To Meet Obligations

December 31, 2025December 29, 2025carlocarrasco

Here in the Philippines, the renewable energy sector suffered a tremendous setback at the Department of Energy (DOE) officially terminated eighty-four renewable energy service contracts over the failure of developers to meet their contractual obligations, according to a news release by the Philippine News Agency (PNA).

This new development reminds me of the DOE’s termination of 21 contracts with Solar Philippines due to its failure to fulfill the energy commitments.

To put things in perspective, posted below is an excerpt from the news article of the PNA. Some parts in boldface…

The Department of Energy (DOE) has terminated 84 renewable energy service contracts this 2025 after developers failed to implement their contractual obligations.

These service contracts cover an “estimated 5,372.209 megawatts (MW) of potential capacity that had been factored into the country’s energy planning assumptions,” the DOE said in a press release Wednesday.

These were terminated “due to developers’ non-compliance with work program requirements, failure to satisfy the Green Energy Auction Program (GEAP) Terms of Reference, and non-adherence to established DOE standards.”

These actions, it said, “follow a comprehensive technical and legal evaluation of the affected projects’ compliance with the material terms and conditions of their respective service contracts.”

“The DOE will continue to uphold high standards for the succeeding GEAP rounds and may impose further sanctions, including blacklisting, forfeiture of performance bonds, and the imposition of applicable penalties,” it said.

The DOE said 43 other RE projects are under enforcement review and may be subject to termination.

With a big chunk of potential capacities unmet, the DOE said it is “actively revisiting supply-demand scenarios and undertaking further system planning to determine appropriate next steps toward meeting established generation targets.”

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the developers and stakeholders of the renewable energy sector of the Philippines are mostly incapable of fulfilling the requirements of the national government with regards to energy service contracts?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Muntinlupa City Government Reminds Public About Dangers Of Firecrackers

December 28, 2025December 22, 2025carlocarrasco

Recently in the progressive City of Muntinlupa, the City Government reminded the public about the danger and risks that come with the use of firecrackers, according to a news report by the Manila Bulletin.

For the newcomers reading this, the use of firecrackers in celebration of the Christmas season and the welcoming of the New Year is common in the Philippines. Through the decades, a lot of people – including children – got injured when incidents involving firecrackers happened.

To put things in perspective, posted below is an excerpt from the news report of the Manila Bulletin. Some parts in boldface…

The Muntinlupa City government reminded the public of the dangers of using firecrackers to celebrate the holiday season.

“Bilang paalala sa mga Muntinlupeño, hinihikayat ng Pamahalaang Lungsod sa pangunguna ni Mayor Ruffy Biazon, at ni PNP (Pulis Ng Muntinlupa) Chief of Police Col. Robert Domingo, ang lahat na maging responsable at maingat—makisaya nang ligtas, sumunod sa batas, at piliin ang alternatibong selebrasyon na hindi delikado (As a reminder to Muntinlupa residents, the City Government, led by Mayor Ruffy Biazon, and PNP (Pulis Ng Muntinlupa) Chief of Police Col. Robert Domingo, encourages everyone to be responsible and careful—have fun safely, obey the law, and choose alternative celebrations that are not dangerous),” the Muntinlupa City government posted on Facebook.

Muntinlupa has an ordinance which totally bans the possession, use, manufacture, sale, display and distribution of any firecracker and pyrotechnic device within its jurisdiction.

City Ordinance 14-092, approved in 2014, prohibits “the manufacture, display, sale, distribution, possession or use of firecrackers or pyrotechnic devices and such other similar devices and the exploding of firecrackers or other similar explosives within the territorial jurisdiction of Muntinlupa City.”

“lt shall, likewise be unlawful for any person to discharge or explode, or cause to discharge or to explode, any firecrackers, or any other explosive or to use any pyrotechnic device or any such other similar device, at anytime and anywhere within the territory of Muntinlupa City,” according to the ordinance.

Violators will be fined P1,000 “or imprisonment of not more than one (1) month but not less than (2) days or both fine and imprisonment, at the discretion of the Court.”

For the second offense, violators face ”a fine of Three Thousand Pesos (Php3,000.00) or imprisonment of not more than Six (6) months but not less Three (3) months, or both fine and imprisonment, at the discretion of the Court.”

For the third offense, violators face “a fine of Five Thousand Pesos (P5,000.00) or imprisonment of not more than Six (6) months but not less than three (3) months, or both fine and imprisonment, at the discretion of Court.”

“lf the violation is committed by a business establishment, the President or General Manager or the Person acting in behalf of either the President or General Manager shall be held liable in the case of a corporation or partnership, or the owner or proprietor or the person acting in his behalf shall be held responsible in the case of a single proprietorship,” the ordinance added.

The Civil Security Group of the Philippine National Police, meanwhile, issued a list of prohibited firecrackers and pyrotechnic devices.

Let me end this post by asking you readers: What is your reaction to this recent development? If you are a resident of Muntinlupa City, do you think the local ordinance is strong enough to protect people from the dangers of firecracker use? Do you think the use of firecrackers should be limited to government units or commercial joints? Do you personally know anyone who got injured because of firecrackers?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Muntinlupa City Government Congratulates Local Athletes Who Won 2025 SEA Games Medals

December 24, 2025December 19, 2025carlocarrasco

Local residents of Muntinlupa City who won medals in the 2025 Southeast Asian Games (SEA Games) in Thailand were congratulated by the City Government, according to a news report by the Manila Bulletin.

To put things in perspective, posted below is an excerpt from the news report of the Manila Bulletin. Some parts in boldface…

The Muntinlupa City government congratulated residents who won medals at the 33rd Southeast Asian Games in Thailand.

They are Daryl John Mercado, Mark Jesus San Jose and Kaila Napolis who won a bronze medal each in different sports in the SEA Games.

Mercado, a resident of Barangay Tunasan, Muntinlupa, won a bronze medal in the Men’s 55kg Judo Shiai.

“Isa na namang Muntinlupeño ang nagbigay karangalan sa ating lungsod matapos makasungkit ng medalya sa 33rd Southeast Asian Games sa Thailand! (Another Muntinlupa man brought honor to our city after winning a medal in the 33rd Southeast Asian Games in Thailand!” the city government posted on Facebook.

It added that Mercado is a project of the city government’s grassroots sports program. He is the current coach of the Muntinlupa Judo Club.

San Jose, a resident of Barangay Putatan, won a bronze medal in Men’s Bowling while Napolis of Barangay Poblacion won the same medal in the Women’s 57kg Jiu-jitsu Ne-waza.

Let me end this post by asking you readers: What is your reaction to this recent development? If you are a resident of Muntinlupa City, are you delighted to know that local residents won medals for the Philippines at this year’s SEA Games? Do you think Muntinlupa can produce more athletes who can be really competitive in international events?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Fitch Ratings Says Flood Control Corruption Scandal Imperils Philippines’ Credit Rating

December 23, 2025December 16, 2025carlocarrasco

It has been months since the flood control corruption scandal rocked the entire Philippines and the economic situation has turned for the worse along the way (click here, here and here). In the view of Fitch Ratings, the scandal puts the nation’s credit rating at risk, according to a news report by BusinessWorld.

To put things in perspective, posted below is an excerpt from the report of BusinessWorld. Some parts in boldface…

THE Philippine economy continues to bear the brunt of the ongoing flood control corruption scandal, Fitch Ratings said, noting that further unrest could spill over to the country’s credit rating.

Fitch Ratings Head of Asia-Pacific Sovereigns Thomas Rookmaaker said the controversy surrounding the anomalous government flood control projects threatens the country’s political stability, fiscal policy implementation, as well as business and consumer confidence.

“We believe that the flood control corruption scandal in the Philippines poses an ongoing risk to political stability, fiscal policy execution, and business and consumer confidence,” Mr. Rookmaaker told BusinessWorld in an e-mail.

Government officials, lawmakers and contractors have been accused of getting billions of pesos in kickbacks from substandard or nonexistent flood control projects. This has triggered widespread protests, slowed government spending, and hurt investor and consumer sentiment.

“The overall impact the scandal will have on the Philippines’ public finances is still uncertain,” Mr. Rookmaaker said.

“Public investment spending is likely to remain weak for quite some time, but continued social unrest could simultaneously lead to spending pressures to head off public discontent.”

In October, government spending fell for a third straight month to P430.6 billion, down 7.76% from P466.8 billion a year ago. Revenues likewise slipped by 6.64% to P441.7 billion from P473.1 billion last year.

Mr. Rookmaaker noted that the immediate impact of the scandal was reflected in the sharp economic slowdown in the third quarter.

Philippine gross domestic product (GDP) expanded by an over four-year low of 4% in the third quarter, as household final consumption expenditure and government spending slowed amid the corruption mess.

For the first nine months, GDP growth averaged 5%, well-below the government’s 5.5-6.5% full-year target. Public investments likewise took a hit from the corruption issues, he added.

In the third quarter, foreign investment pledges approved by investment promotion agencies plunged by 48.7% to P73.68 billion, Philippine Statistics Authority data showed.

“Persisting social tensions could become more of a drag on growth if confidence among foreign and domestic investors suffers,” the Fitch analyst said. “Tensions could also serve as a distraction for policymakers, impeding the passage of reforms that have the potential to enhance economic productivity and competitiveness.”

Mr. Rookmaaker said implementing reforms to enhance accountability and governance could bolster private investments and promote growth in the medium term.

Let me end this post by asking you readers: What is your reaction to this recent development? Did you think Fitch Ratings is correct with its economic analysis of the Philippines and the flood control corruption scandal? Do you think foreign investors have been turned off by the scandals and social unrest?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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