governance – Page 4 – Author Carlo Carrasco

AI Eyed For Integration Into Philippine Government Operations

November 9, 2025November 2, 2025carlocarrasco

During the Asia-Pacific Economic Cooperation (APEC) recently held in South Korea, President Ferdinand “Bongbong” Marcos, Jr., stated that his administration is pursuing artificial intelligence (AI) and integrate it across the agencies of the Philippine government sooner than later, according to a Manila Bulletin news report.

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

President Marcos said his administration is determined to adopt artificial intelligence (AI) across government agencies “as much as we can, as soon as we can,” warning that waiting too long would mean missing out on opportunities for innovation and efficiency.

“You’re missing a chance if you wait,” Marcos told reporters here on Saturday evening, Nov. 1.

“AI is going to come. Parang alon ‘yan, eh. Kahit anong gawin mo, mababasa ka (AI is like a wave — no matter what you do, you’ll get wet),” he added.

The President said the Philippines must quickly learn how to use AI “in the best, secure, and benevolent way” to serve the public, warning that failure to adapt could leave the country behind.

“If you do not learn how to swim, if you do not learn how to use AI properly, may iwanan ka talaga (You’ll be left behind),” he said.

According to Marcos, AI’s rapid evolution makes it necessary for governments to study and apply the technology carefully.

“What AI can do one month ago is different from what AI will be able to do one month from now. That’s why people can’t quite understand it — it learns,” he said.

He described AI as “such a powerful tool” that could transform governance, public service, and economic competitiveness.

“You must take advantage of it as quickly as possible. You have to learn how to use it as quickly as possible,” the President said.

He added that other world leaders in the Asia-Pacific Economic Cooperation (APEC) share the same sense of urgency.

“That’s one of my big takeaways from APEC. All the other leaders as well — they recognize how quickly AI will overwhelm us if we do not learn how to handle it properly,” he said.

Not a one-size-fits-all approach – Asked whether he plans to issue a directive guiding agencies on AI adoption, Marcos said it was too early to impose a blanket policy.

“It’s not yet clear what AI you use for government,” he said.

“Each department has a slightly different AI. We have to learn — we’re still studying,” he added.

The President said the government intends to consult both local and international experts to identify which applications of AI are most useful and which areas require caution.

“We have to talk to the experts — the whole world — and find out what does it do well, what doesn’t it do well,” he said.

Still, Marcos emphasized that AI adoption must be people-centered, helping Filipinos rather than replacing them.

In my opinion, using AI for governance and public service still looks uncertain. Considering how powerful or sophisticated AI has gotten today, it can be prone to abuse by the government. Worse, there is no guarantee right now how to protect human users from getting overwhelmed in the event that AI becomes self-aware and turns rogue against humanity. Just two years ago, GMA Network came up with fake sportscasters (both generated by AI) which caused some controversy here in the Philippines and only reminded people that AI has no soul and no humanity. Apart from being harmful to human workers in the business world, lots of AI applications made errors that affected users in varying ways. AI is currently not so effective in Japan in relation to finding solutions to their rice production problems. Watch and learn from the videos below.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think AI will really be helpful with regards to governance and public service? Do you think Congress should first make a new law and a series of rules covering AI? What safety measures should be taken to protect people in case rogue AI happens? Do you think the AI move is a convenient strategy of the administration to keep people’s attention away from the flood control corruption scandals and the weakening economic growth of the country?

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

Philippines 3rd Quarter GDP Growth Lands At 4%

November 8, 2025November 8, 2025carlocarrasco

The official economic numbers have been unveiled at last by the Philippine Statistics Authority (PSA) and the results are disappointing as the gross domestic product (GDP) growth of the Philippines for the 3^rd quarter of 2025 landed at a disappointing 4%, according to a Malaya Business Insight new report. The results could mean that the Philippine economy could fall short of the 5.5% to 6.5% GDP growth range by the end of this year.

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

The Philippine economy expanded by 4 percent in the third quarter of 2025, a sharp slowdown from the second quarter and the year earlier as public construction spending eased amid stricter validation measures for government projects.

The third-quarter growth rate in gross domestic product (GDP) marks a deceleration from a 5.49 percent rise in the second quarter.

Data released on Friday by the Philippine Statistics Authority (PSA) also showed growth in the third quarter this year lost some momentum from 5.2 percent in the third quarter of 2024.

For the first nine months to September 2025, GDP grew by an average of 5 percent, easing from a rise of 5.8 percent in the year-earlier period.

Department of Economic Planning and Development (DEPDev) Secretary Arsenio Balisacan said services and industry, on the supply side, posted weaker growth. He pointed out that Department of Public Works and Highways (DPWH) civil works went through stricter validation measures.

Q3 growth drivers – National Statistician and PSA Undersecretary Claire Dennis Mapa said the main contributors to growth during the July-to-September period were wholesale and retail trade, including the repair of motor vehicles and motorcycles (up 5.0 percent); financial and insurance activities (5.5 percent); and professional and business services (6.2 percent).

“All major economic sectors — agriculture, forestry, and fishing; industry; and services — posted year-on-year growths in the third quarter,” Mapa said, citing respective increases of 2.8 percent, 0.7 percent, and 5.5 percent.

On the demand side, household final consumption expenditure grew by 4.1 percent year-on-year, while government spending rose 5.8 percent. Exports of goods and services climbed 7.0 percent, and imports expanded 2.6 percent. In contrast, gross capital formation — the measure of investment in fixed assets — fell 2.8 percent, reflecting caution among businesses and slower project rollouts.

Weaker services and industry – In a separate statement, DEPDev Secretary Balisacan, referring to the easing of the supply side, particularly in the services and industry performance in the nine-month period, cited “a sharp contraction in public construction due to stricter validation measures for DPWH civil works, as well as the implementation of new requirements that delayed billings and disbursements for government projects.”

Despite the slowdown, Balisacan pointed out that private construction “remained respectable,” though investment in durable equipment “was subdued.”

Indeed, the latest GDP growth statistics are disappointing. The national government plans to spend more than P1.3 trillion to boost the economy in the 4^th quarter and we will only find out the results of that in early January 2026.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the economy of the Philippines does not have enough momentum to achieve the national government’s GDP growth range for 2025? Do you think the ongoing flood control corruption scandal developments have turned away lots of foreign investors?

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 Bags Seven Honors At DILG Urban Governance Exemplar Awards

November 8, 2025November 5, 2025carlocarrasco

Excellence of the City of Muntinlupa has been realized in the form of seven honors bagged by the City Government during the recent Urban Governance Exemplar Awards (UGEA) 2025, according to a Manila Bulletin 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 Muntinlupa City government bagged seven awards at the Urban Governance Exemplar Awards (UGEA) 2025 given by the Department of the Interior and Local Government (DILG) on Nov. 4.

Mayor Ruffy Biazon and Vice Mayor Stephanie “Phanie” Teves-Wong attended the awarding ceremony along with city officials.

UGEA recognized the accomplishments of local government units (LGUs). The Muntinlupa City government received the following awards:

• Local Council for the Protection of Children Performance Year 2024 – Top Performer

• Sangguniang Panlungsod of Muntinlupa – 2025 Local Legislative Award for Exemplary Performance

• Peace and Order Council & Anti-Drug Abuse Council – Significant and Invaluable Partner in Advancing the Vision of a Safe, Secure, and Drug-Free NCR

• Local Committee on Anti-Trafficking and Violence Against Women and their Children 2025 Functionality Audit – Highly Functional

• 2024 Manila Bay Clean-Up, Rehabilitation and Preservation LGU Compliance Assessment – Highly Compliant

• 2024 Manila Bay Clean-Up, Rehabilitation and Preservation LGU Compliance Assessment – Top Performer (Informal Settler Families Cluster)

• 2024 Manila Bay Clean-Up, Rehabilitation and Preservation LGU Compliance Assessment – Top Performer (Liquid Waste Management Cluster)

Biazon said the awards reflected the efforts of every city employee and leader in delivering high-quality public service.

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 see the City Government achieve more awards? Do you see any excellence in the local governance in relation to urban developments?

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

Ban On POGOs Institutionalized

November 6, 2025October 29, 2025carlocarrasco

The ban on Philippine Offshore Gaming Operators (POGOs) has officially been institutionalized recently as Republic Act Number 12312 has been signed into law by President Ferdinand “Bongbong” Marcos, Jr., according to a news article by the Philippine News Agency (PNA).

Back in July 2024, the ban on POGOs was declared and there were some economic effects that followed (click here and here). POGOs are notorious for being connected with varied forms of crime and human rights abuses. It should be noted that even though the ban was in effect, there were still POGO operations uncovered in Parañaque City (click here, here and here) which itself has been a hot spot of criminal activities involving Chinese nationals for many years now.

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

President Ferdinand R. Marcos Jr. has signed Republic Act (RA) 12312, institutionalizing the ban on Philippine offshore gaming operators (POGOs) and declaring their operations and other related activities illegal.

RA 12312, or the Anti-POGO Act of 2025, signed by Marcos on Oct. 23, repeals RA 11590, which previously legalized offshore gaming operations.

“The State recognizes that the maintenance of peace and order, the protection of life, liberty, and property, and the promotion of the general welfare are paramount for the meaningful enjoyment of democracy. The State likewise values the dignity of every human person and guarantees full respect for human rights,” the new law stated.

“To this end, offshore gaming operations in the Philippines are hereby banned and declared unlawful,” it added.

RA 12312 prohibits the establishment, operation, or conduct of offshore gaming in the Philippines; the acceptance of any form of betting for offshore gaming operations; acting as a POGO gaming content or service provider; the creation and operation of a POGO hub; and the introduction, use, or possession of POGO gaming equipment or paraphernalia.

The law orders the permanent cancellation of all licenses previously issued for POGO operations.

All Alien Employment Permits and certificates of exemption and exclusion issued by the Department of Labor and Employment (DOLE), as well as any visa or work permit issued by the Bureau of Immigration (BI) or other visa-issuing agencies to POGO workers, have also been revoked.

“Upon the effectivity of this Act, the DOLE, the BI, and other visa-issuing agencies shall not be allowed to issue any visa or work permit to any person for purposes related to offshore gaming operations,” the law stated.

“The BI shall ensure that any foreign national whose visa is cancelled in accordance with this provision shall be deported directly to the country of his or her birth or citizenship, in coordination with the appropriate embassy or consulate.”

Under RA 12312, all POGOs, as well as POGO gaming content providers, accredited service providers, and local gaming agents whose licenses have been revoked, remain liable for taxes, duties, regulatory fees, and all other charges up to the last day of their operations.

These are due and payable to the government for obligations arising from or in connection with their operations.

The Bureau of Internal Revenue (BIR) is directed to audit persons and entities to determine any outstanding tax liabilities, despite the revocation of licenses and closure of operations.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think there are still POGOs or even tiny POGO-like operations still operating secretly around the country right now?

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 Prioritizes People Through Governance

November 4, 2025October 28, 2025carlocarrasco

The City Government of Muntinlupa made clear through its executive budget and goals that it is putting the people first, according to a news article by the Manila Standard.

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

In an era of cynicism toward government, Muntinlupa City is proving that good governance is still good politics.

Mayor Ruffy Biazon champions social justice through strong health and education spending — proving that clean, compassionate, and competent governance works.

As budget debates heat up nationwide, Muntinlupa City is standing tall for all the right reasons. Under the leadership of Biazon, the city has made human development, not grandstanding or prestige projects, its number one priority.

In the city’s P8.8-billion 2025 executive budget, a remarkable 22 percent is devoted to health and 18 percent to education, directing nearly P4 out of every P10 toward people-centered programs.

These figures far surpass national benchmarks where the 2025 General Appropriations Act (GAA) assigns around 16.7 percent to education and less than 6 percent to health.

Based on comparative data from the Department of Budget and Management and DILG, Muntinlupa consistently ranks among Metro Manila’s highly urbanized cities with the highest proportional investments in health and education, a reflection of the city’s deep commitment to human capital development.

In a time when the public is more watchful than ever about where every peso goes, Muntinlupa is setting the gold standard for purposeful and transparent spending.

“As we close the year, Muntinlupa can say with pride that our budget reflects our conscience,” said Biazon. “We chose people over politics, essentials over excess, and impact over impression.”

Through his 7K Agenda, Biazon has kept his focus sharp: Kalusugan (health) and Karunungan (education) lead the city’s spending priorities, backed by strong fiscal performance.

“A good budget is not about how much we spend, but how many lives we lift,” Biazon said. “That’s what makes governance both moral and meaningful.”

With 22 percent of the city’s budget directed to health, Muntinlupa is upgrading the Ospital ng Muntinlupa (OsMun), acquiring modern medical equipment, and strengthening drug supply systems. Investments are also flowing to barangay health centers and community-based health institutions to ensure access to preventive care and emergency response.

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 feel important to the City Government? Are you happy with the way the City Government has prepared its executive budget?

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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BMI Sees Philippines GDP Growth Slowing Down To 5.2% In 2026

November 3, 2025October 25, 2025carlocarrasco

BMI, a unit of Fitch Solutions, officially lowered its 2026 gross domestic product (GDP) for the Philippines at 5.2% pointing a series of factors such as remittances slowdown, weaker investor sentiment, US tariffs on Philippine goods and the effects of the flood control corruption scandals, according to a Manila Bulletin news report.

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

Fitch Solutions’ unit BMI has sharply lowered its 2026 Philippine growth forecast to well below the government’s six- to seven-percent target, citing an expected slowdown in remittances, a weaker trade balance, muted investment sentiment, and downside risks to government spending stemming from the flood control fiasco.

“We expect remittance growth to slow due to tighter US [United States] immigration policy and a one-percent remittance tax on transfers from the US starting in 2026,” BMI said in a commentary published on Thursday, Oct. 23.

“A slowdown in remittances will weigh on domestic consumption, which will have an outsized impact on growth given the domestically driven economy,” BMI explained.

Against this backdrop, BMI has slashed its 2026 gross domestic product (GDP) growth forecast for the Philippines to 5.2 percent, one-percentage-point (ppt) lower than the 6.2 percent it projected previously.

If realized, this would also fall below this year’s growth goal of 5.5 to 6.5 percent, and 2024’s actual pace of 5.7 percent.

Another policy by US President Donald Trump that could drag down the local economy is the 19-percent tariff on Philippine exports, but zero tariffs imposed on select American imports.

This US-Philippines trade setup, according to BMI, “will weigh on the trade balance in 2026.”

Goods exports growth in August was the slowest in 2025 as US tariffs took effect and exporters’ front-loading of outbound shipments ended.

The latest Philippine Statistics Authority (PSA) data showed that goods exports grew by 4.6 percent year-on-year in August, marking the slowest increase since the 1.9-percent decline in December 2024

BMI also believes investor sentiment will “likely” remain muted next year as “erratic US trade policies will weigh on global investor sentiment and limit foreign direct investment inflows [FDIs].”

Domestically, government spending could bear the impact of a scenario where the ongoing flood control probe leads to the unearthing of more corruption cases tied to infrastructure projects beyond flood control.

“It could lead to even tighter scrutiny on government spending and reduce spending substantially below fiscally programmed levels,” BMI said. Capital outlays had dropped by 10 percent to ₱112.9 billion as of August, according to the Department of Budget and Management (DBM).

Infrastructure spending is expected to hit ₱1.51 trillion in 2025, ₱1.56 trillion in 2026, ₱1.69 trillion in 2027, ₱1.9 trillion in 2028, ₱2.03 trillion in 2029, and ₱2.2 trillion in 2030.

Meanwhile, BMI retained its 5.4-percent Philippine growth forecast for this year, still below the lowered full-year target.

Let me end this post by asking you readers: What is your reaction to this development? Are you convinced that due to several internal and external factors, economic growth of the Philippines will be slower this year and next year? Do you agree with BMI’s findings about the Philippine economy?

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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BPI Warns Public About Rise Of Smishing Scams Ahead Of Christmas Season

November 2, 2025November 2, 2025carlocarrasco

With the Christmas season approaching, Bank of the Philippine Islands (BPI) warned the public about the rise of smishing as criminals have changed their strategies and used more sophisticated technology to steal people’s money, according to a Manila Bulletin news report.

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

Ayala-led Bank of the Philippine Islands (BPI) is cautioning clients about a sharp, pre-holiday surge in online banking fraud linked to smishing, noting that criminals’ tactics have evolved from simple text scams to using highly sophisticated tools to steal money.

“Consumer complaints are increasing… a lot of it is seasonal. During Christmas, when people receive their bonuses, these cases really go up,” Jon Paz, BPI enterprise information security officer and data protection officer, said during the bank’s cybersecurity roundtable with the media on Wednesday, Oct. 22.

Paz reported that around eight out of 10 online banking fraud cases last year were perpetrated through smishing attacks using International Mobile Subscriber Identity (IMSI) catchers and rogue apps.

He further noted that there were almost zero IMSI-catcher-related fraud cases in 2024, but incidents began appearing around December and skyrocketed by the second quarter of this year.

“Some of the authorities reported that those who were caught were reporting to Chinese nationals,” Paz added.

An IMSI catcher is a fake cell tower device used by scammers to intercept mobile signals and steal users’ personal and banking information.

Meanwhile, a rogue app is a malicious or fake mobile application that tricks users into granting permissions or entering credentials, allowing scammers to harvest personal and banking data.

Despite the increasing number of consumer complaints in the banking industry, Paz noted that BPI’s risk tolerance is “low—one incidence of fraud is one too many for us.”

While the bank cannot disclose its total allotment for app enhancements, BPI Chief Technology Officer Alex Seminiano stated that nearly 60 individuals are working across various functions—business, technology, and operations—to enhance the bank’s mobile app.

BPI said its mobile apps are equipped with an evolving security layer that can detect risky environments and devices, such as those that are jailbroken, use overlays, or allow side-loading, to prevent potential breaches.

Let me end this post by asking you readers: What is your reaction to this development? Are you concerned that smishing will affect members of your family or those in your local community? Were you scammed online during the past six months? How many people in your local community are aware of smishing right now? Did you receive any text messages that tried to convince you to hit the link provided?

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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Scam Calls In The Philippines Jumped 78.44% In 3rd Quarter Of 2025

November 1, 2025October 23, 2025carlocarrasco

If you are in the Philippines, did you receive any suspicious calls on the telephone or on your mobile phone lately? Based on the data of an anti-scam app developer, scam calls in the country surged by more than 78% in the 3^rd quarter of this year, according to a Manila Bulletin news report.

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

A 78.44 percent rise in scam calls was recorded in the Philippines in the third quarter of 2025, data from the latest Whoscall Scam Report of global anti-scam app developer Gogolook showed.

During the period, Whoscall said it logged a total of 62,390 scam calls, a sharp increase from 34,964 in the previous quarter.

Despite the spike, it noted that the figure remains 62.24 percent lower year-on-year than the 165,236 scam calls recorded in the same period in 2024.

Whoscall stated that it recorded 37,609 SMS scams, down by 42.17 percent from 65,035 in the previous quarter and a 97.71 percent year-on-year drop from 1,645,470 in 2024.

Gogolook Philippines Country Head and General Manager Mel Migriño said the trend indicates a behavioral shift among mobile users.

“Since the first quarter Scam Report of 2025, we have seen that Filipinos have become more cautious about clicking links from unknown numbers in SMS swindles. This shows that scammers are now shifting their tactics to calls and social media,” she said.

She explained that the rise in call scams is largely driven by fraudsters exploiting the telemarketing systems of financial institutions.

“They are taking advantage of legitimate promotional calls like credit card limit upgrades, making their scams sound more believable to unsuspecting consumers,” she noted.

Per Migriño, the continued decline in text-based scams can be credited to the “whole-of-society approach” involving law enforcement raids of major scam hubs nationwide and joint awareness campaigns.

Authorities urged the public to remain vigilant and report scam incidents through official channels.

Cybercrime Investigation and Coordinating Center (CICC) acting executive director Usec. Renato “Aboy” Paraiso said public reports are crucial in combating online fraud.

“We continue to urge the public to report scam incidents, as these serve as leads for further investigation and as the foundation for various initiatives that raise public awareness against online scams,” he said.

Let me end this post by asking you readers: What is your reaction to this recent development? What do you think is causing the surge of scam calls over the previous quarter?

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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President Marcos Congratulates Japanese Prime Minister Takaichi

October 30, 2025October 28, 2025carlocarrasco

Shortly after Sanae Takaichi took office as Prime Minister of Japan, Philippine President Ferdinand “Bongbong” Marcos, Jr., recently congratulated her, according to a Manila Bulletin news report.

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

President Marcos has extended his congratulations to Japan’s newly-elected Prime Minister Takaichi Sanae, the first woman to assume the post.

“Congratulations to Prime Minister Takaichi Sanae on her historic election as Japan’s first female Prime Minister,” Marcos said in a statement on Wednesday, Oct. 22.

“Her assumption demonstrates Japan’s firm democratic advocacy, and reflects the country’s commitment to progress and representation,” the President added.

Marcos expressed his eagerness to work with Prime Minister Takaichi in strengthening the Philippines’ and Japan’s bilateral cooperation, especially as both countries prepare to mark the 70th anniversary of diplomatic relations in 2026.

“I look forward to working with her in commemorating the 70th Anniversary of Philippine-Japan diplomatic ties in 2026, and in deepening the Philippine-Japan Strengthened Strategic Partnership for the peace and prosperity of our peoples,” the President said.

Most recently, the Prime Minister met with President Marcos formally in Malaysia. For details, click here.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think bilateral ties between Japan and the Philippines will grow stronger now that President Marcos and Prime Minister Takaichi have officially met? Do you think Filipinos who intend to migrate to Japan have doubts about Prime Minister Takaichi knowing that she will be tough on illegal immigration?

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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Nomura Sees 2025 Philippine Economic Growth Slowing Down To 4.7%

October 30, 2025October 29, 2025carlocarrasco

In its latest economic report, Nomura Global Markets Research sees the economic growth of the Philippines slowing down to 4.7% this and they pointed to an expected decline in government spending, according to a news report by BusinessWorld.

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

PHILIPPINE ECONOMIC GROWTH may slow to 4.7% this year, as government spending is expected to further decline amid the corruption investigation in infrastructure projects, Nomura Global Markets Research said.

In a report dated Oct. 27, Nomura Chief ASEAN (Association of Southeast Asian Nations) Economist Euben Paracuelles and Macroeconomic Research Analyst Yiru Chen said the gross domestic product (GDP) forecast was slashed to 4.7% this year from 5.3% previously as downside risks increased due to the corruption scandal involving flood control projects.

“This pencils in GDP growth slowing to just 4% in the second half from 5.4% in the first half and is based on the assumption that the decline in government expenditures in September will worsen in the next 3-4 months,” they said.

Nomura’s latest forecast is below the government’s 5.5-6.5% GDP growth target for the year and is slower than the 5.7% growth in 2024.

“Taking into account the sharp drop in fiscal spending in September, we think the ‘bad scenario’ on the growth impact of the ongoing corruption scandal is materializing,” they said.

Third-quarter GDP data will be released on Nov. 7.

President Ferdinand R. Marcos, Jr. had flagged anomalous flood control projects during his State of the Nation Address in late July. This sparked several investigations into alleged corruption involving lawmakers, government officials, and private contractors.

Latest Treasury data showed government expenditures declined by 7.53% in September, worsening from the 0.7% drop in August, mainly due to lower spending by the Department of Public Works and Highways. Nomura also noted that government spending declined by 2.8% in the third quarter, a reversal of 1.6% growth in the second quarter.

“Excluding interest payments and debt servicing, expenditure growth slumped even more to -10.2% y-o-y (year on year) in September from -3.5% in August, the weakest since 2020. This suggests a relatively rapid deterioration in the pace of budget disbursements after President Marcos brought to light the corruption scandal of flood control projects,” they said.

Nomura also noted that the reallocation of funds to other types of capital expenditures such as school buildings has been “challenging” to implement.

“In addition, we incorporate some spillovers into other components of domestic demand, which were also evident in these previous episodes, including household consumption spending. Our forecast continues to take into account the impact of the US tariffs, which, as we have argued before, pose significant headwinds for goods exports,” they said.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the GDP growth of the Philippines will end up below 5% for 2025 as a whole? Are you convinced that investigations and embarrassing details from flood control projects are turning away foreign investors 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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