money – Page 11 – Author Carlo Carrasco

Keep Call Centers in America Act of 2025 Causes Disturbance on Philippines Information Technology and Business Process Sector

August 21, 2025August 12, 2025carlocarrasco

More than twenty years ago, I had a job at an American call center in Mandaue City, Cebu Province here in the Philippines. Back then, the call center industry of the nation was very young and yet quickly growing in terms of revenues, new foreign investments and new jobs. Today, the Philippines has a large information technology and business process management (IT-BPM) sector.

That being said, America today is quickly reforming under the leadership of President Donald Trump and already business ties and trade relationships have quickly been changing. In the United States Senate (US Senate), a bipartisan bill was formally filed – the Keep Call Centers in America Act of 2025.

Already, the proposal is already disturbing the information technology and business process management sector of the Philippines as revealed by the Manila Bulletin in its business news report.

To make things clear, I am not taking sides here. I am a citizen of the Philippines who worked for a few months in an American call center a very long time ago and at my age, I have no intention to return to call center work. I am already engaging in a new business that has nothing to do with call centers and business process management. As for how America’s leaders deal with call centers and business processing centers located in different parts of the world, that is their decision to make. It would be interesting, perhaps intriguing, to see how the Philippines IT-BPM sector will adjust if ever the Keep Call Centers in America Act of 2025 becomes a law someday.

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

The Philippine information technology and business process management (IT-BPM) sector is bracing for the potential impact of a bill in the United States (US) Senate that seeks to end the practice of offshoring among American call centers.

The IT and Business Process Association of the Philippines (IBPAP), the country’s leading IT-BPM group, said the industry is currently monitoring the progress of this proposed legislation.

“At this stage, we are continuing to track developments,” IBPAP told Manila Bulletin.

The proposed Keep Call Centers in America Act of 2025, filed as a bipartisan bill in the US Senate, is aiming to curb offshoring or relocation of business operations from one country to another as it pertains to call center jobs.

In a statement by Arizona Senator Ruben Gallego, a Democrat, he said the bill looks to reverse the continued decline of call center operations in America, driven by the emergence of artificial intelligence (AI) offshoring.

Citing data from the US Bureau of Labor Statistics (BLS), Gallego noted that the American call center industry will lose approximately 150,000 workers by 2033 if such practices persist.

“The Keep Call Centers in America Act would work to reverse this trend by limiting federal benefits to companies that ship call center jobs overseas,” said Gallego, who filed the bill with West Virginia Senator Jim Justice, a Republican.

Under the proposed bill, companies are required to notify the US Department of Labor (DOL) at least 120 days before relocating operations overseas or contracting out call center work to another entity that relocates abroad.

The DOL, meanwhile, will be mandated to maintain a public list of employers that have relocated operations. Companies will remain on the list for five years “unless they return an equal or greater number of call center jobs in the US.”

Call center firms on this list will be ineligible for new federal grants and guaranteed loans and will not be given preference when awarding contracts.

In a CBS News report, Gallego said that aside from supporting the return of domestic jobs, the bill will likewise address consumer concerns when it comes to “security around their private information.”

The bill, if enacted, will cover businesses with either 50 or more full-time employees, or 50 or more employees whose combined work hours total at least 1,500 per week. As such, the measure will impact large-scale call center operations such as those that are currently operating in the Philippines.

Based on a 2023 report by the Ateneo Policy Center, more than 200 US-based firms have invested approximately $7.8 billion to set up operations in the Philippines since 2003.

The proposed Keep Call Centers in America Act could not have come at a worse time, given that the Philippines’ services exports are slowing down.

In a report, Bank of the Philippine Islands (BPI) lead economist Emilio Neri Jr. noted that services exports shrank by 4.2 percent year-on-year in the second quarter of 2025, citing data from the Philippine Statistics Authority (PSA). This followed a 6.3-percent growth rate in the first quarter, which decelerated from a 13.2-percent expansion in the fourth quarter of 2024.

Neri said the services export sector is weighed down by a sharp drop in travel and signs of weakness in the IT-BPM sector.

To examine the details of the Keep Call Centers in America Act of 2025, click here and here.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you know a lot of people here in the Philippines who work in American call centers? Do you seriously believe that if ever the Keep Call Centers in America Act of 2025 becomes a law, it will someday compel American companies to close down its call centers here in the Philippines and create a wave of new job losses? Without American companies and clients, do you think the Philippines IT-BPM sector will shrink dramatically? Do you think the Keep Call Centers in America Act of 2025 will be passed by US Congress and get signed into law by US President Trump?

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

P7-billion redevelopment and expansion of SM Megamall pushing through

August 19, 2025August 12, 2025carlocarrasco

When was the last time you visited SM Megamall here in the Philippines? I was there a few months ago and it still has that same long rectangular structure with lots of stores, restaurants and service providers occupying spaces. It has been 33 years since my first-ever visit at SM Megamall. That being said, SM Megamall is up for major changes as a P7-billion redevelopment and expansion plan for it has been approved with a competition target between 2027 and 2029, according to a Manila Bulletin business news report.

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

SM Prime Holdings Inc. (SM Prime), the Sy family’s property development company, is investing ₱7 billion to redevelop and further expand SM Megamall, one of the Philippines’ most iconic malls, with phased completion targeted between 2027 and 2029.

In a disclosure to the Philippine Stock Exchange (PSE), the firm said the project is designed to elevate the customer experience while embedding long-term sustainability measures across the property.

Designed by United Kingdom (UK)-based architectural firm Benoy—known for developments like Jewel Changi in Singapore and Icon Siam in Thailand—the new SM Megamall will adopt a “Crystal Islands” concept, emphasizing natural light, open flow, and organic forms.

The redevelopment will add 20,000 square meters (sqm) of gross leasable area (GLA) and introduce nature-inspired architecture, improved mobility features, and energy-efficient systems. The addition of themed retail zones and intuitive wayfinding is designed to make the mall more accessible, while encouraging visitors to explore and discover new experiences throughout the expansive complex.

Operational upgrades include a new four-level basement parking facility with over 1,600 slots, expanded walkways and ceilings, and improved circulation through wider corridors and modernized vertical transport.

The redevelopment also includes relocated state-of-the-art cinemas, a new Megatrade Hall, a redesigned food court, and upgraded common areas and restrooms.

Sustainability features are integral to the redevelopment blueprint. A rainwater harvesting system with a 500-cubic-meter capacity will support water conservation, while upgrades to the mall’s mechanical systems are expected to reduce overall energy consumption.

ETFE roofing will be used to let in natural light and reduce cooling costs, while skylights and clerestory windows will minimize artificial lighting.

Let me end this post by asking you readers: What is your reaction to this recent development? When was the last time you spent at least half a day at SM Megamall doing shopping and leisurely activities? Are your favorite restaurants located inside SM Megamall?

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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Festival Mall acquisition boosts FILRT growth and portfolio size

August 17, 2025August 8, 2025carlocarrasco

Remember when Filinvest REIT Corp. (FILRT) acquired Festival Mall for P6.26 billion months ago? Already the premier Alabang shopping mall has boosted the earnings and portfolio size of FILRT, according to a business news report by the Manila Bulletin.

For the newcomers reading this, read my previous posts about Festival Mall (which first opened in May 1998) and FILRT by clicking here, here and here. FILRT meanwhile is reputed for being one of the top taxpayers in Muntinlupa City.

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

Filinvest REIT Corp., the real estate investment trust of the Gotianun Group, declared ₱404 million in fresh dividends after reporting an 8.3 percent growth in net income to ₱651 million in the first six months of 2025 from ₱601 million in the same period last year.

The firm disclosed to the Philippine Stock Exchange that, for the first half of the year, it recorded revenues of ₱1.57 billion, higher by 13 percent from the same period in 2024, resulting from improvements in operations and the addition of Festival Main Mall to the portfolio.

Meanwhile, costs and expenses were contained at ₱613 million, higher by one percent, while other charges were lower by four percent to ₱187 million.

Festival Main Mall started accruing to the revenue stream of FILRT beginning May 29, 2025, equivalent to one month and three days’ revenue contribution.

The addition of Festival Main Mall is seen to improve FILRT’s earnings per share by 5.5 percent in 2025. With the additional asset, FILRT’s portfolio size increased by 37 percent in terms of GLA to 452,310 square meters.

“We are pleased to have infused a value-adding asset into our portfolio through Festival Main Mall. Having this momentum, we look forward to adding more assets and diversifying our tenant base to further the growth of the company,” said FILRT President and CEO Maricel Brion-Lirio.

The company’s portfolio of 17 office buildings, one mall, and one resort lot totaling 452,310 square meters had an occupancy of 86 percent at the end of the first half of 2025, an improvement of five percentage points from 81 percent in June last year.

The current overall tenant mix is comprised of 60 percent offices, 32 percent retail, and the balance for hospitality. Of the offices segment, 84 percent are multinational BPO companies while 16 percent are traditional.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think FILRT will somehow improve the quality of Festival Mall in terms of structure and tenants? Was it a surprise that Festival Mall boosted the earnings of FILRT this early?

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 engagements, commerce and other relevant updates, join the growing South Metro Manila Facebook group at https://www.facebook.com/groups/342183059992673

Jobless Filipinos reach almost 2 million in June 2025

August 14, 2025August 6, 2025carlocarrasco

The number of jobless Filipinos swelled largely to almost two million this past June when compared to a year prior, according to a Manila Bulletin news report. Among the factors were the job losses in the gambling and betting sector, the construction sector and in 3 other sectors.

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

Coupled with an increase in unpaid workers, the number of jobless Filipinos swelled by more than 300,000 to 1.95 million in June from 1.62 million a year ago, with the online gambling sector partly contributing to the pool of unemployed.

Preliminary data from the Philippine Statistics Authority (PSA) showed that job losses in June translated to a higher unemployment rate of 3.7 percent from 3.1 percent in the same month last year.

“Gambling and betting activities contributed to the drop in arts, entertainment, and recreation, along with other amusement and recreation activities,” Deputy National Statistician and PSA Assistant Secretary Divina Gracia L. Del Prado said during a press briefing on Wednesday, Aug. 6.

Del Prado reported that the gambling and betting subsector shed nearly 210,000 workers, stressing that this had the largest share in the decrease of employees in arts, entertainment, and recreation.

Other than arts, entertainment, and recreation, the four other sectors that were major contributors to June’s job losses were construction (-692,000), agriculture and forestry (-580,000), manufacturing (-424,000), and mining and quarrying (-96,000).

Conversely, the employment rate dropped to 96.3 percent in June from 96.9 percent from June last year. In terms of numbers, employed Filipinos stood at 50.47 million, nearly 200,000 individuals higher than 50.28 million a year ago.

Data from the PSA showed that the services sector accounted for the largest share of jobs during the month at 61.4 percent, followed by agriculture with 20.9 percent, and industry with 17.7 percent.

Fishing and aquaculture posted the highest gains in June, with an additional 512,000 employed. Wholesale and retail trade, and vehicle repair recorded the second largest gain of 375,000.

Completing the subsectors with largest increases were financial and insurance activities (327,000), transport and storage (211,000), and health and social work (179,000).

“What we’re seeing now isn’t very encouraging. If you look at the increase by class of worker, a large portion came from unpaid workers—actually, 296,000. Employers increased by 80,000, and self-employed by 75,000,” Del Prado said.

“But the more [impacted] group is the unpaid workers, since that’s where the increase happened—and that’s not the kind of growth we want. The rise should have been in wage and salary earners, so this isn’t a very good result,” Del Prado further said.

Del Prado noted that wholesale and retail trade saw a significant increase, with unpaid workers in this sector bloated by nearly 150,000. Fishing and aquaculture also added 102,000 unpaid jobs.

“Employment in both sectors increased, but a large part of that growth was in unpaid work. This suggests we still need to improve the quality of jobs. And if you also notice the trend in underemployment, it has barely dropped to single digits—only once so far.”

“So we still need to improve job quality. While our employment rate has been rising over time, I think we need to focus more on improving the quality of work, because the underemployment rate shows that it hasn’t improved yet,” she urged.

According to Del Prado, underemployment last fell to single digits in May 2024 at 9.9 percent but has remained in double digits since then. Underemployment in June lowered to 11.4 percent from 12.1 percent a year ago.

Let me end this post by asking you readers: What is your reaction to this recent development? What do you think needs to be done in order to improve job quality? Are a lot of people in your local community considered unemployed or underemployed? Do you think the current growth of the national economy will create a significant number of new jobs before the year ends?

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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Four Chinese nationals arrested in Parañaque City over kidnapping

August 13, 2025August 4, 2025carlocarrasco

Recently in the city of Parañaque, local law enforcers arrested four Chinese nationals over the kidnap of a fellow Chinese national, according to a Philippine News Agency (PNA) news article. The suspects previously operated as money changers targeting those who exchanged large amount of money.

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

Four Chinese nationals were arrested over the weekend for allegedly kidnapping a fellow Chinese citizen, Philippine National Police (PNP) chief Gen. Nicolas Torre III announced on Monday.

In a press briefing at Camp Crame, Torre said the four suspects were arrested on Saturday by members of the PNP’s Anti-Kidnapping Group (AKG) at a resort-casino in Parañaque City.

He said the group operated as money changers who would target individuals exchanging large amounts of money.

“Matagal na kasi established itong apat, kilala na ito na mga money changer (These four have been established for a long time and are known as money changers),” he added.

AKG director Brig. Gen. Glicerio Cansilao said the 30-year-old male victim, while in captivity, managed to a discreetly call a friend through a borrowed mobile phone. The friend then called law enforcement authorities via 911.

Upon arrival at the hotel room, AKG operatives found six individuals —the four suspects, the victim, and a female Chinese national who also turned out to be a victim.

It was also learned that the male victim was physically harmed and forced to transfer an approximate amount of US$50,000 from his cryptocurrency wallet as part of ransom for his freedom.

The suspects are temporarily detained at Camp Crame and have already undergone inquest proceedings for charges of kidnapping and serious illegal detention.

Let me end this post by asking you readers: What do you think about this recent development? If you are a resident of Parañaque, are you concerned that there could still be a lot of criminal activities committed by Chinese nationals? Do you consider Parañaque a hot spot of criminal activities involving Chinese nationals?

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

Philippines inflation rate falls below 1% in July 2025

August 12, 2025August 5, 2025carlocarrasco

After the slight rise recorded in June 2025, the inflation rate of the Philippines fell below 1% this past July, according to news article by the Philippine News Agency (PNA).

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

The country’s inflation or the rate of increase in the prices of goods and services reversed its path in July 2025 after decelerating to 0.9 from month-ago’s 1.4 percent, driven primarily by the slower upticks in electricity rates and prices of liquefied petroleum gas (LPG).

The latest inflation figure, the lowest since October 2019’s 0.6 percent, brought the average in the first seven months this year to 1.7 percent, still below the government’s 2 to 4 percent target.

National Statistician Claire Dennis Mapa, in a briefing Tuesday, said food and non-alcoholic beverages also contributed to the lower inflation rate last July due to lower price increases of several items like rice, vegetables, tubers and cooking bananas; and fuel prices.

He said a continued drop in rice prices is seen to result in slower uptick for this particular item for the rest of the year, despite the proposal to stop rice importation and increase tariff to protect local farmers.

The government increased rice importation and lowered rice tariff from 35 percent to 15 percent for a period, starting in the second half of 2024 until 2028 to address rice price hikes.

This resulted in lower rice inflation, from 14.7 percent in August 2024 to 0.8 percent in December last year. Mapa forecast rice inflation to remain in negative territory for the next four months.

“The expectation is negative average rice inflation for the whole year,” he said in a mix of Filipino and English.

In terms of the impact of recent typhoons, Mapa said prices of vegetables have inched up in the second half of July, which is normal during typhoon season.

While inflation is seen to remain low, he pointed out that there are threats such as the higher prices of pork products, due to the impact of African swine fever; higher demand for chicken meat, as an alternative to pork, and rising prices of fish.

Deflation in low-income households – With the government is offering cheaper rice to the vulnerable sector, inflation rate for the bottom 30 percent income group as of July slipped to -0.8 percent from the year-ago’s 5.8 percent, the Department of Economy, Planning, and Development (DEPDev) noted.

Aside from rice, other contributors to the lower inflation rate for the bottom 30 percent income group are slower upticks in the prices of corn and vegetables and tubers, it said.

“The sustained drop in rice prices and the easing of inflation for low-income households are clear signs that our interventions are working. This not only helps Filipinos preserve the value of their peso but also builds confidence for businesses and consumers to plan ahead,” DEPDev Secretary Arsenio Balisacan said.

“While we expect the overall inflation for 2025 to remain favorable and supportive of domestic demand, we remain vigilant against external risks, including global policy shifts and geopolitical tensions,” he said.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think there is a chance that the inflation rate of the Philippines will remain below 1% for the rest of 2025? Do you think the deflation of rice will continue going into 2026?

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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Ayala-Mitsubishi’s P18.4 billion GCash deal closed

August 11, 2025August 1, 2025carlocarrasco

After being cleared by the Philippine Competition Commission (PCC), the P18.4 billion deal between Ayala Corporation and Mitsubishi Corporation regarding a 6.5% stake in GCash owner Globe Fintech Innovations Inc. (Mynt) has finally closed, according to a Manila Bulletin business news report.

For the newcomers reading this, the Ayala-Mitsubishi deal was sealed a few months ago and it was perceived that it will likely boost the IPO of GCash.

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

The Zobel family’s Ayala Corp. (AC) has closed the sale of a 6.5-percent stake in GCash owner Globe Fintech Innovations Inc. (Mynt) to long-time partner Mitsubishi Corp. for ₱18.4 billion after the deal was cleared by the anti-trust watchdog Philippine Competition Commission (PCC).

In a disclosure to the Philippine Stock Exchange (PSE), Ayala said it has sold half of wholly owned AC Ventures Holding Corp. (ACV) to Mitsubishi. ACV owns about 13 percent of Mynt. Mynt has two financial technology (fintech) companies: G-Xchange Inc., the mobile wallet operator of GCash, and Fuse Lending, a tech-based microlender.

The PCC has cleared the deal after finding that Mitsubishi’s investment in ACV would not significantly reduce competition in the market for QR code-based digital payments to merchants.

The PCC noted in its decision the relatively small market share held by GCash in the provision of QR-based person-to-merchant payments. Additionally, the PCC cited the strong governmental push for interoperability in QR-based payments in the country as a factor in its approval.

Person-to-merchant payments, facilitated by QR codes, enable businesses to accept digital payments from consumers for goods and services.

While Mitsubishi indirectly owns Lawson Philippines, a convenience store chain that accepts QR code-based payments from consumers, the PCC said that its limited presence means the transaction would not result in a substantial lessening of competition.

“Mitsubishi, Japan’s largest trading company, can help Mynt grow overseas and within its own significant Japan-based ecosystem, and in areas like cloud-based payments and new credit algorithms,” Ayala said.

Ayala and Mitsubishi entered into a partnership and cooperation agreement in 1974 that has since featured industrial estates, renewable energy (RE) projects, a water utility, and auto dealerships.

Ayala President and Chief Executive Officer (CEO) Cezar P. Consing said earlier that, “We believe Mitsubishi can add meaningful value to Mynt, which will allow Mynt to deliver significant value to its over 94 million registered users.”

ACV will serve as Ayala and Mitsubishi’s joint venture (JV) entity that will explore consumer-related and digital opportunities in the Philippines.

“These initiatives are aligned with AC’s strategic priority to support the growth of clear business winners within its portfolio,” Ayala said.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think there will be a series of technological and technical improvements happening with GCash as a result of the closed deal between Ayala and Mitsubishi? How many people in your household are using GCash nowadays?

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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Philippine Economy Grew by 5.5% in 2nd Quarter of 2025

August 9, 2025August 7, 2025carlocarrasco

The economy of the Philippines expanded by 5.5% during the 2^nd quarter of 2025, according to a GMA Network news report. Among the factors are strong 2^nd quarter gains by the agriculture, forestry, fishing, industry and services sectors.

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

The Philippine economy grew marginally quarter-on-quarter in the second quarter of 2025 amid the growth seen in services, agriculture, and industry sectors, and posted a deceleration from the same period last year, according to the Philippine Statistics Authority (PSA).

The country’s gross domestic product (GDP) — the value of goods and services produced in a period — grew slightly faster by 5.5% in the April to June 2025 compared to the 5.4% growth seen in the January to March 2025 period, PSA chief and National Statistician Claire Dennis Mapa reported at a press conference in Quezon City on Thursday.

The second quarter GDP growth was the fastest in four quarters, however, it was still slower than the 6.5% growth rate in the same period in 2024.

All major economic sectors posted annual growth during the quarter — agriculture, forestry, and fishing with 7.0%, industry with 2.1%, and services with 6.9%.

The PSA attributed the year-on-year growth to wholesale and retail trade, repair of motor vehicles and motorcycles with 5.1%; public administration and defense, and compulsory social security with 12.8%; and financial and insurance activities with 5.6%.

Fixed capital investments climbed 2.6%, led by private construction which grew 11.2%, and investments in durable equipment up 10.6%.

Government spending posted an 8.7% growth rate during the quarter, slower than the 18.7% seen in the first quarter, which Department of Economy, Planning, and Development (DepDev) Secretary Arsenio Balisacan attributed to the election spending ban.

“We expect to maintain that momentum in the spending side. I think that the next half, the second half of the year, you should see improvements in the construction, public construction spending,” he said in a briefing.

While the election spending ban hit government spending, officials said the campaigns boosted household spending which grew by 9.5%, faster than the 5.29% in the previous quarter, and the 5.4% in the second quarter of 2024.

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 will be able to accelerate to achieve 6% gross domestic product (GDP) growth for the entire 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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Economic study finds Starbucks and Dunkin’ leading Philippines coffee market while local brands are gaining

August 6, 2025July 29, 2025carlocarrasco

Are you fond of buying drinks at a local coffee shop or at a small stall that sells coffee? Recently the University of Asia and the Pacific-Center for Food and Agri Business (UA&P-CFA) announced the results of its research revealing that the local coffee market (cafés and small sellers specifically) of the Philippines are being dominated by Starbucks Coffee and Dunkin’ (formerly Dunkin’ Donuts) while several local brands are gradually gaining market share, according to a Philippine Star business news report.

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

Global brands continue to dominate the country’s coffee industry, but homegrown brands are gaining traction, helping to diversify and enrich Filipinos’ caffeine options, according to the University of Asia and the Pacific-Center for Food and Agri Business (UA&P-CFA).

In a policy brief, UA&P-CFA said the local café market is led by a “few dominant” global brands, based on a Euromonitor report.

These global brands, the UA&P-CFA noted, maintain their strong presence through solid branding, extensive branch networks and loyal customer base.

The policy brief indicated that Starbucks Corp. remains as the industry leader, accounting for almost 54 percent of total value share among chain café and bar operators.

It was followed by Dunkin’, a foreign brand under Inspire Brands Inc., with a 12.1-percent market share, according to the policy brief authored by Cy Reyes, a research assistant at UA&P-CFA.

Meanwhile, McDonald’s Corp. held a market share of 5.8 percent while Jollibee Foods Corp., which operates The Coffee Bean & Tea Leaf, accounted for 5.6 percent.

“In addition to global chains, the Philippine café scene is vibrant and diverse, featuring several strong homegrown brands that continue to gain traction and shape local consumer habits,” UA&P-CFA said.

UA&P-CFA said one of the most prominent local cafés is Mary Grace Food Inc., noting that it is known for its “cozy, sit-down atmosphere” and its handcrafted baked goods. The other notable local players, according to the policy paper, are Bo’s Coffee, Figaro Coffee, Coffee Project and But First, Coffee.

The local coffee industry has also been enriched by the growth of specially and so called third-wave coffee shops like Yardstick, % Arabica and El Union, the UA&P-CFA said.

These coffee shops focus on artisanal brewing methods, single-origin beans and minimalist shop designs, it added.

Furthermore, coffee kiosks like Big Brew, Pickup Coffee and various regional iced coffee stalls catering to the fast-growing market for convenient, budget-friendly caffeine options contribute to the vibrant coffee industry.

The emergence of various coffee brands outside the traditional, huge global names indicate the “rich” and “expanding” influence of local café innovators, UA&P-CFA said.

“Though these smaller and niche players hold modest individual shares of the market, collectively they play a vital role in the evolution of the industry,” it said.

“They offer localized flavors, elevate coffee standards, and respond to the preferences of a wide and increasingly discerning customer base,” it added.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the coffee market and coffee sellers industry of the Philippines will keep modernizing as more people keep on buying coffee? Do you think the recent study should focus more on convenience stores selling coffee? What is your favorite coffee shop here in the Philippines?

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 says America’s 19% tariff may cut Philippines GDP growth slightly

August 5, 2025July 28, 2025carlocarrasco

In the middle of mixed reactions towards the United States’ 19% tariff on Philippine exports, Nomura Global Markets Research stated that the country’s gross domestic product (GDP) growth could be cut by 0.4%, according to a BusinessWorld news report. Recently, US President Donald Trump and Philippine President Ferdinand “Bongbong” Marcos, Jr., met in the White House which resulted in the new tariff.

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

THE United States’ 19% tariff on Philippine goods could cut the Philippines’ gross domestic product (GDP) growth by 0.4 percentage point (ppt), Nomura Global Markets Research said.

In a report, Nomura said the US tariff of 19% on Philippine goods is “fairly high” and poses downside risks to growth.

“We estimate the direct effects could reduce our baseline GDP growth forecasts by a still-substantial 0.4 ppt in the Philippines.”

Nomura said this projection is “relatively substantial” compared to its baseline growth forecasts of 5.3% and 5.6% for this year and 2026, respectively.

“This is partly because we assigned 10% as the level where the reciprocal tariff rate could settle, on the assumption that the Philippines is a strong ally of the US and is not a third country for transshipments,” Nomura said.

“As it turns out, despite the visit to Washington by President Marcos and both sides reiterating the need for a strong partnership, the tariff was still set at 19%, which is even higher than the ‘Liberation Day’ level of 17%.”

Last week, Philippine President Ferdinand R. Marcos, Jr. met with US President Donald J. Trump at the White House in Washington, DC. Mr. Trump announced a 19% tariff would be imposed on Philippine goods, which will take effect starting Aug. 1.

“The trade ‘deals’ therefore represent upside surprises in terms of tariff rates, especially for the Philippines,” Nomura said.

“As a result, if implemented and these tariff rates are sustained, these will likely further weigh on growth in both countries relative to our current baseline forecasts.”

The government expects GDP to grow by 5.5-6.5% this year, lower than its previous target of 6-8%.

“While these ballpark estimates make sense to us, uncertainty remains high and these are ‘only’ taking into account the direct effects on these ASEAN countries’ exports to the US,” Nomura said.

These estimates do not account for sectoral tariffs, such as in semiconductors and pharmaceuticals, which are currently exempted, it added.

“But as our US team highlights, the risk is these could be set higher, though some countries could be exempted, adding to the uncertainty. As mentioned above, the details of the trade deals with Indonesia and the Philippines are still limited.”

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the Philippines is in a serious disadvantage with the American tariff of 19% imposed on the nation’s exports? Do you think the Philippine economy still has strong momentum to reach 6% GDP growth by the end of 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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