Four Filipino women executives have been named among Fortune’s 100 Most Powerful Women in Asia for 2026

Four Filipina CEOs make Fortune’s Asia power list

Nazylen Joy Mabanglo
The Manila Times
06 October 2026

MANILA, Philippines — Four Filipino women executives have been named among Fortune’s 100 Most Powerful Women in Asia for 2026, with Mynt President and CEO Martha Sazon ranking highest among the Philippine contingent at 35th.

Land Bank of the Philippines President and CEO Lynette Ortiz ranked 77th, followed by Megaworld President and CEO Lourdes T. Gutierrez-Alfonso at 87th and UnionBank President and CEO Ana Maria Aboitiz Delgado at 98th.

The four represent key sectors of the Philippine economy, including financial technology, government banking, real estate and commercial banking.

Sazon leads the company that runs GCash, the country’s largest fintech platform, which is preparing to list on the Philippine Stock Exchange on Oct. 20 through an initial public offering that is expected to raise about P61 billion.

The offering is on track to become the country’s largest IPO, with cornerstone commitments from global investors including BlackRock, T. Rowe Price and the International Finance Corp.

GCash has been used by about 90 million Filipinos, while its monthly active users stand at about 41.5 million, according to Fortune.

Ortiz, meanwhile, the 11th president and CEO of LandBank, was appointed to lead the state-run lender in 2023 after three decades in the banking industry. She previously became the first Filipino to serve as chief executive of Standard Chartered Bank Philippines.

Under Ortiz, LandBank posted a record P44 billion in net income in 2025, up 24 percent year-on-year, while declaring P32.6 billion in dividends to the national government in 2026.

Gutierrez-Alfonso ranked 87th, up from 92nd in the previous year. She has served as Megaworld president and CEO since June 2024 after joining the company in 1990, about six months after its establishment.

Megaworld posted a record P24 billion in net income in 2025 on P86 billion in revenue. However, growth has moderated, with the property developer cutting its 2026 project launches and capital expenditures. Its net income rose 5 percent in the first half of 2026.

Delgado, a fifth-generation member of the Aboitiz family, ranked 98th. She joined UnionBank in 2003 after working at Citibank and became the bank’s president and CEO in January 2025.

In March, Delgado became the first woman to lead the Bankers Association of the Philippines in the organization’s nearly 80-year history. She has also advocated the use of artificial intelligence in banking, comparing its potential impact with the emergence of internet banking.

UnionBank reported P9.9 billion in net income in 2025, down 17 percent from a year earlier, amid one-off charges. The bank generated P83.2 billion in revenue and served 18.6 million customers.

Philippines gets top marks for investor relations, debt transparency

Philippines gets top marks for investor relations, debt transparency

Nyah Genelle C. De Leon
Inquirer.net
11 July 2026

MANILA, Philippines – The Philippines ranked among the top performers in the latest Institute of International Finance (IIF) assessment of emerging markets, earning high marks for investor relations and debt transparency.

In its 2026 Investor Relations and Debt Transparency Report, the IIF gave the Philippines the highest Investor Relations Country Score of 49.3 out of 50, making it the top performer among 57 emerging markets and developing economies.

The score measures the breadth and quality of a country’s investor relations practices. According to the IIF, higher scores are typically associated with stronger and more stable sovereign credit ratings.

The Philippines also ranked third in debt transparency, scoring 12.3 out of 13, behind only Türkiye and Hungary. The indicator evaluates how governments disclose public debt data and policies.

Meanwhile, the country was one of only four economies to earn a perfect 4.0 score for environmental, social and governance (ESG) data and policy disclosure, alongside Hungary, Uruguay and Chile.

The strong showing across all three indicators reflects what the IIF calls a “transparency dividend.”

“When fiscal, debt, and policy information is disclosed in a timely, credible, predictable, and investor-friendly manner, investors are better able to distinguish known risks from unknown ones, shrinking the uncertainty premium embedded in borrowing costs,” the IIF said.

“This growth in the investor relations function reflects growing recognition that investor engagement and transparency are integral to sovereign debt management—a ‘must-have’ rather than ‘nice-to-have’ set of communication tools,” it added.

Commitment to transparency

In a statement on Friday, the Department of Finance (DOF) credited the country’s strong performance to its investor engagement efforts and commitment to making sovereign debt data more transparent and accessible.

“This recognition sends a strong signal that the Philippines is a credible and reliable investment destination. It reflects growing confidence in the Philippine economy and in the reforms we are pursuing,” Finance Secretary Frederick Go said.

“By strengthening investor relations through transparency, trust is built. Strong investor confidence helps the government access financing on better terms, allowing us to invest more in priority programs and services that create jobs, support businesses, and expand opportunities for Filipino families,” he added.

The report comes despite outlook downgrades from two major credit rating agencies in April.

Fitch affirmed the Philippines’ BBB rating but revised its outlook to “negative” from “stable.” S&P Global Ratings kept its BBB+ rating but lowered its outlook to “stable” from “positive.” Moody’s Ratings maintained both its Baa2 rating and stable outlook. /pai INQ

Jollibee advanced to the fifth spot in global ranking of the world’s strongest restaurant brands

Jollibee rises as 5th strongest restaurant brand worldwide

Richmond Mercurio
Philstar Global
26 February 2026

MANILA, Philippines — Homegrown fast-food chain Jollibee has emerged as the fifth-strongest restaurant brand worldwide, based on a new report by brand valuation consultancy firm Brand Finance.

Jollibee advanced to the fifth spot in global ranking of the world’s strongest restaurant brands for 2026 from ninth place in 2025, with its brand strength index improving to 87.9/100 from 83.9 the previous year.

Jollibee, which is the flagship brand of Asian food conglomerate Jollibee Foods Corp., remained the Philippines’ sole representative among the world’s 25 most valuable restaurant brands and is the only Philippine and Southeast Asian brand included in the global ranking.

Ernesto Tanmantiong, Jollibee Group global president and chief executive officer, said the recognition reflects the brand’s rising global competitiveness and equity.

“Being ranked among the world’s strongest restaurant brands by Brand Finance signals that Jollibee is winning in superior taste and strengthening consumer preference across markets. It reflects the trust we have built, the disciplined execution of our teams and the growing power of our brand,” Tanmantiong said.

Brand Finance reported that Jollibee’s brand value rose by 32 percent to $3.3 billion in 2026, placing it 18th among the world’s 25 most valuable restaurant brands.

As the only Philippine and Southeast Asian brand in the global ranking, Brand Finance said Jollibee’s performance underscores the ability of home-grown brands to compete internationally through disciplined execution while sustaining strong brand equity and expectations for future earnings.

Jollibee’s continued expansion across Asia, North America and the Middle East has strengthened long-term growth visibility while preserving brand leadership in its core market.

Philippines cements its position as one of the world’s largest remittance destinations

Philippines emerges as battleground for faster, cheaper digital remittances

Keisha Ta-Asan
Philstar Global
11 January 2026

MANILA, Philippines — As the Philippines cements its position as one of the world’s largest remittance destinations, global financial institutions are doubling down on efforts to support the country’s rapidly evolving digital payments landscape.

J.P. Morgan sees the Philippines at the center of Asia’s cross-border remittance growth, driven by the surge of digital wallets, instant payment schemes and new consumer expectations for speed and transparency.

Akhil Devmurari, fintech sector head for Asia Pacific at J.P. Morgan Payments, said the Philippines continues to stand out in the region’s payment corridors.

“Philippines has one of the largest inbound remittance corridors,” he said. “Last year (remittances) were close to $40 billion. It’s a huge value and that is continuing to grow.”

Building rails across ASEAN

The bank’s regional footprint provides the infrastructure needed to support this expansion. Devmurari said the global investment bank’s payments organization is present in 14 markets including Singapore, Hong Kong and the Association of Southeast Asian Nations (ASEAN).

This presence allows the bank to offer local clearing access, local accounts and execution services, particularly for clients moving money into remittance-heavy markets like the Philippines.

Devmurari said his team focuses on supporting regulated payment companies, many of which are driving today’s cross-border innovation.

“Our approach is to help our clients provide cash management services, payments capabilities where they can leverage banks’ rails to collect money from the senders,” he said. This includes services that cover “collections, safeguarding funds, foreign exchange and payout services.”

With remittance flows into the Philippines still dominated by bank transfers, the push toward instant payments and wallet-based settlements is accelerating. Devmurari noted that the demand for speed has shifted drastically.

He added that the bank is enhancing its country-level capabilities to support this shift.

“We are subscribing, or already have access, to local real-time payment rails so we can enable faster transaction processing for our fintech companies,” he said.

For the Philippines, this opens the door to more seamless last-mile payouts using the country’s instant transfer system. The next frontier, he said, is pay-to-wallet capabilities. “Pay-to-wallet capabilities is something that we think will also add value and is an evolving area.”

Financial inclusion drives wallet growth

Beyond remittances, wallet providers are accelerating financial inclusion across ASEAN — a theme particularly relevant for the Philippines, where millions remain unbanked.

Devmurari said wallet companies have become “very powerful” by using technology for know your customer onboarding and remote access.

“People who are in remote areas are not easily able to access the financial ecosystem but they can actually do it by leveraging individual wallet capabilities,” he said.

ASEAN still has about 55 percent of its population unbanked or underbanked. Wallets, he said, are filling this gap and J.P. Morgan’s role is to support liquidity and payout rails behind these platforms.

“We feel that we are going hand in hand with the fintech companies and wallet providers to tackle the financial inclusion part.”

The bank sees growing momentum in southbound corridors such as India to ASEAN and China to ASEAN, but the Philippines remains a critical destination market.

“Middle East and the Philippines is a huge opportunity,” Devmurari said, noting the continued expansion of Filipino worker deployments abroad.

He also highlighted the growing cross-border connectivity of Philippine fintechs.

“As the fintech community grows, the cross-border connectivity and cross-border connectivity from the corridors perspective, whether Middle East or Philippines or other ASEAN markets into the Philippines, I think that’s going to be a significant opportunity,” he said.

Efforts like Project Nexus, which links real-time payment systems across ASEAN, are expected to further boost speed and transparency.

But as digitalization advances, Devmurari stressed the need to address emerging threats.

The future, he said, is about balancing innovation and risk. “On one hand, yes, the growth is important, real-time payments are already here, wallet capabilities are already there. At the same time we need to strike a balance between risk management and digitalization.”

Three PH firms included in Forbes Asia's '100 to Watch' list 2025

Three PH firms included in Forbes Asia's '100 to Watch' list 2025

Jon Viktor D. Cabuenas
GMA Integrated News
26 Aug 2025

Three Philippine companies were included in Forbes Asia’s annual ‘100 to Watch’ list for 2025, which highlights small firms and startups in the Asia-Pacific region with up to $50 million in annual revenue, and up to $100 million in total funding.

According to Forbes Asia, this year’s list showcases a range of startups in fields such as biotechnology, space technology, and green technology, with India leading the pack with 18 companies, followed by Singapore and Japan with 14 each, Indonesia and South Korea with eight each, and Australia with seven.

“They are utilizing advanced technologies like AI to enhance their products, which include gene-editing tools and propulsion systems for spacecraft. As a clear indication of their potential, these 100 startups have raised a combined total of nearly US$3 billion in funding to date,” Forbes Asia editorial director Rana Wehbe Watson said.

The listees are grouped under 10 categories, with the largest cohort in biotechnology and healthcare with 18, followed by enterprise technology and robotics with 16.

The Philippine companies included in this year’s list are the following:

Enstack

The e-commerce and retail firm was founded in 2021, and offers an AI-assisted app that can be used to design web stores. It has been downloaded over 100,000 times from Google Play, and expanded into Thailand this year. It has raised $3 million in total funding from backers such as BlackPine, Mangrove Capital Partners, Unifer Ventures, and Xendit.

NetBank

Founded in 2019, NetBank provides digital financial services such as loan management, and payments and disbursements. Its backers Beenext and Kaya Founders, and counts Smart Money, TikTok, and Lazada as clients. It posted a net profit of P22.2 million or $390 million in the first half of 2025, driven by the strong loan growth and the rise in deposits.

Xpress Super App

The consumer technology company was founded in 2022, offering ride-hailing, delivery, and courier services through its  application. It was co-founded by PJ Lhuillier Group president and chief executive officer Jean Henri Lhuillier and AppFactoric founder Nathan Taylor, and now has over 100,000 downloads in Google Play while a separate app for its driver community has over 10,000 installs.

The finalists were selected from online submissions that were solicited, along with the nominations from accelerators, incubators, universities, venture capitalists. They were chosen based on factors such as impact on and contribution to their industry and region, market fit, promising business model, innovation, track record, and their ability to attract funding. —KG, GMA Integrated News

PH has 12,800 millionaires - Henley & Partners

Philippines now has 12,800 dollar millionaires - report

JON VIKTOR D. CABUENAS
GMA Integrated News 
24 June 2025

The number of millionaires in the Philippines has grown by 32% in the past decade, outpacing regional peers and major economies, a report by Henley & Partners—a global consultancy firm on residence and citizenship by investment—released on Tuesday showed.

According to Henley & Partners managing director Scott Moore, the Philippines now has an estimated 12,800 high-net-worth individuals (HNWIs) or millionaires with at least $1 million. This includes 70 centi-millionaires or individuals with liquid investable wealth of at least $100 million, and 12 billionaires.

“This consistent growth reflects the country’s emerging entrepreneurial class, its maturing financial markets, and its expanding real estate and services sectors,” he said.

“While it is not yet among the top destinations for incoming millionaires globally, the Philippines’ stability and growing wealth base stand out and create a strong foundation for future investment migration,” he added.

Compared with the top 10 countries in the world ranked by the number of resident millionaires or W10, the Philippines’ 32% growth has outpaced the average, and came in third behind the United States of America (78%), and China (74%).

“The Philippines is actually growing the amount of high-net-worth individuals at a very good pace and definitely above average if you’re comparing with W10 countries,” Moore said.

The report shows that the USA has the biggest concentration of millionaires, with 6.041 million, followed by China with 827,900, Germany with 781,900, Japan with 714,000, and the United Kingdom (UK) with 578,400.

France followed with 490,800; Australia with 391,000; Switzerland with 384,500; Canada with 378,600; and Italy with 318,200.

Net outflow

For 2025, Moore said the Philippines is expected to post a net outflow of 50 millionaires, most of whom are expected to move to the top 10 countries for net millionaire inflows, led by the United Arab Emirates (UAE) and the USA, as well as nearby countries such as Singapore.

“When any families are looking to relocate to other countries, generally they’re looking to have optionality for their families, for their children, for their businesses,” he said.

“Perhaps they’re looking to expand their businesses overseas, perhaps they see better work opportunities for themselves or their children in other countries, but again, the loss of 50 is very insignificant,” he added.

There are a total of 142,000 millionaires expected to migrate this year, with the top 10 destinations being the United Arab Emirates (UAE), USA, Italy, Switzerland, Saudi Arabia, Singapore, Portugal, Greece, Canada, and Australia, all of which have investment migration programs.

The biggest outflow is expected in the UK, with 16,500 millionaires this year. If realized, this would be the biggest single-year outflow after the implementation of major changes to its tax regime in 2024 and its decision to leave the European Union in 2020.

The biggest net outflow of millionaires within Asia is expected in China, with 7,800 exits; Vietnam, with 300; Indonesia, with 250; Lebanon and Iran, with 200 each; and Taiwan and Pakistan, with 100 each.

“The loss of 50 is very insignificant, but we’re comparing it to other countries in the region. I would say it’s much more worrying in Vietnam that’s losing 300 millionaires, Indonesia's 250,” Moore said.  — VBL, GMA Integrated News

S & P optimistic on credit rating upgrade

S&P optimistic on Philippines credit rating upgrade

Louise Maureen Simeon 
The Philippine Star
May 7, 2025

Despite US tariffs

MANILA, Philippines — S&P Global Ratings is optimistic on the Philippines’ credit rating upgrade despite the impacts of the reciprocal tariffs imposed by the United States, as the country remains among the least affected in the region.

In a webinar yesterday, the New York-based rating agency maintained that it continued to have a positive outlook on the Philippines even after US President Donald Trump imposed reciprocal tariffs during its Liberation Day last month.

S&P Sovereign and International Public Finance Ratings for Asia director Rain Yin said that the Philippines is going to be less affected than other countries in the region considering that it has one of the lower initial reciprocal tariff of 17 percent.

The country also does not have very large bilateral trade supplies with the US, as a substantial portion of its exports is in services.

“With the current positive outlook, we are expecting that the constructive trends that we are seeing in the Philippines, namely its strong growth trajectory, narrowing current account deficits and fiscal consolidation, will enable us to raise the rating in the next one or two years,” Yin said.

Last November, S&P raised the Philippines’ credit rating outlook to positive from stable, increasing the possibility of an upgrade in the next 12 to 24 months.

“However, if downside risks are very significant and derail our expectations on those constructive trends, then the outlook can possibly go back to stable,” Yin said.

Nonetheless, S&P noted that economic growth would still be affected by Washington’s protectionist policies as it penciled in a 0.3-percentage point decline in gross domestic product.

“What will it take to remove the positive outlook? It really comes down to a judgment of the size of the negative tariff impact on growth, fiscal, debt and external positions,” Yin said.

According to S&P, the US tariffs could affect sovereign ratings of emerging Asian economies, including the Philippines, through economic growth outcome, fiscal stimulus that could worsen fiscal and debt metrics and trade slowdown that could weaken external positions and strain reserves.

On fiscal stimulus, the debt watcher said no large ones have been rolled out by economies as many governments are still negotiating with the US for tariff relief.

Following the large stimulus during the pandemic, it added that many governments are also in a fiscal consolidation phase and may not easily roll out new measures.

However, S&P warned that a few sovereigns such as Indonesia, Malaysia and the Philippines are having more elevated interest burdens.

“A combination of higher debt and potentially higher interest rates could increase this ratio further, which would increase the downside risk to the rating,” Yin said.

“But it’s also likely for monetary policies to ease further due to a combination of debt growth and disinflationary pressures. So, this could help to alleviate the interest burden, even if debt levels would increase,” she said.

Philippines listed 15 Billionaires in 2025

15 Philippine tycoons led by Villar among Forbes ‘World’s Richest People’

Inquirer.net
01 April 2025

MANILA, Philippines — Fifteen tycoons from the Philippines, led by property magnate Manuel Villar, made it to Forbes Magazine’s World’s Richest People for 2025.

Almost the same names made the cut this year, although the list from the country is a bit shorter than the 2024 roster, which had identified 16 local billionaires with net worth exceeding $1 billion.

One notable newcomer is Eusebio Tanco, whose wealth was buoyed by the surge in the valuation of online gaming firm Digiplus Interactive Corp.

Villar topped the list with an estimated net worth of $17.2 billion. Recently, the “brown taipan” announced that Golden MV Holdings Inc., the mass housing and memorial park developer that he leads, hit nearly P1 trillion in net profit in 2024 on gains from the assessment of its investment properties, the highest in Philippine history.

Ranking second is ports and casino tycoon Enrique Razon, with an estimated wealth of $10.9 billion.

San Miguel Corp. chair Ramon Ang placed third with $3.7-billion net worth, followed by Lucio Tan with $3 billion.

Sy family

All the six children of the late SM group founder Henry Sy Sr. landed on the list individually: Henry Jr. ($2.3 billion); Hans ($2.2 billion), Herbert ($2.1 billion), Harley ($1.9 billion), Teresita ($1.9 billion) and Elizabeth ($1.7 billion).

Andrew Tan had $1.6 billion credited to his name, followed by Lucio Co ($1.4 billion), Susan Co ($1.3 billion) and Tony Tan Caktiong ($1.3 billion).

Tanco rounded up the list with an estimated wealth of $1.2 billion.

The list

The 15 tycoons and their estimated net worth are as follows:

1. Manuel Villar, $17.2 billion
2. Enrique Razón Jr., $10.9 billion
3. Ramon Ang, $3.7 billion
4. Lucio Tan, $3 billion
5. Henry Sy Jr., $2.3 billion
6. Hans Sy, $2.2 billion
7. Herbert Sy, $2.1 billion
8. Harley Sy, $1.9 billion
9. Teresita Sy-Coson, $1.9 billion
10.  Elizabeth Sy, $1.7 billion
11. Andrew Tan, $1.6 billion
12. Lucio Co, $1.4 billion
13. Susan Co, $ 1.3 billion
14. Tony Tan Caktiong, $1.3 billion
15. Eusebio Tanco, $1.2 billion

Elon Musk tops global list

Forbes announced a record-breaking 3,028 billionaires with collective wealth of $16.1 trillion on its 39th annual World’s Billionaires list.

Elon Musk dethroned French luxury goods titan Bernard Arnault for the top spot, as the former’s net worth grew by 75 percent to an estimated $342 billion. His jump in wealth followed big new valuations of xAI and SpaceX, and a 12-month rise in Tesla stock, despite the recent selloff.

Musk, a close ally of President Donald Trump, is the first person on the planet to reach the $300 billion mark.

On the other hand, President Trump more than doubled his net worth to an estimated $5.1 billion, due to the upswing in shares of Trump Media & Technology Group and big cash inflows from his recent crypto ventures.

“It’s another record-breaking year for the world’s richest people, despite financial uncertainty for many and geopolitical tensions on the rise,” said Chase Peterson-Withorn, Forbes Senior Editor, Wealth.

“And, from Elon Musk to Howard Lutnick and the other billionaires taking over the U.S. government, they’re growing more and more powerful.”

Meta chief Mark Zuckerberg took the No. 2 spot with an estimated net worth of $216 billion, followed by Jeff Bezos at No. 3 ($215 billion), Larry Ellison at No. 4 ($192 billion) and Bernard Arnault & family ($178 billion) rounding out the top five. – Doris Dumlao-Abadilla

Philippines is seeking enhanced cooperation and investment opportunities with Germany

Philippines seeks stronger economic ties with Germany

Louise Maureen Simeon
Philippine Star
06 October 2024

MANILA, Philippines — The Philippines is seeking enhanced cooperation and investment opportunities with Germany in a bid to boost the local economy.

Finance Secretary Ralph Recto recently met with German Ambassador to the Philippines Andreas Michael Pfaffernoschke to discuss the country’s economic prospects and explore further cooperation with German investors.

Pfaffernoschke lauded the government for enhancing the ease of doing business in the country and eliminating trade barriers.

The ambassador likewise recognized the Philippines as one of the top performing economies and growth drivers in Southeast Asia, proving investors’ positive view on the country’s investment environment.

Data showed that Germany has consistently ranked as a top trade and investment partner for the Philippines.Last year, foreign direct investments from Germany soared to $149.89 million, the highest since 2005.

Germany emerged as the leading source of foreign-approved investments contributing almost P400 billion.

Recto said that the enactment of the Corporate Recovery and Tax Incentives for Enterprises Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill, targets to encourage more German investors to pour resources into the Philippines.

Expected to be passed within the year, CREATE MORE targets to enhance both fiscal and non-fiscal incentives, resolve key investor concerns and respond to emerging global developments.

It will also streamline business compliance by reducing documentary requirements and exempt export-oriented enterprises from paying value-added tax.

Specifically, the government is looking to attract more investments in clean and renewable energy, green infrastructure, sustainable agriculture and waste-to-energy technologies, among others.

BSP Gov bags highest grade in Global Finance report card

Remolona gets ‘A-’ in global central bankers’ report card

Story by Ian Nicolas P. Cigaral
Inquirer.net
26 August 2024

MANILA, Philippines — Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. bagged an “A-” grade for his first year as head of the Philippine central bank in the 2024 report card of New York-based Global Finance magazine.

Remolona, who took over the BSP helm in June 2023, got the third highest grade in the annual report card that uses an “A+” to “F” scale for success in areas such as inflation control, economic growth goals, currency stability and interest rate management.

Notably, he earned the same grade as US Federal Reserve Chair Jerome Powell, who announced in a hotly anticipated speech last week that “the time has come for policy to adjust” amid a slowdown in the American job market.

“A” represents an excellent performance, with “A+,” “A” or “A-” being the highest grades that central bank governors of nearly 100 key countries can receive. An “F” means outright failure.

Global Finance announced only the top-rated central bankers for this year in a statement dated Aug. 19. Published annually since 1994, the full 2024 report card will appear in its October issue.

Fighting inflation

“Central bankers have waged war against inflation over the past few years, wielding their primary weapon: higher interest rates. Now, countries around the world are witnessing the tangible results of these efforts, as inflation has dropped significantly,” said the magazine’s founder and editorial director Joseph Giarraputo.

“Global Finance’s annual Central Banker Report Cards honor those bank leaders whose strategies outperformed their peers through originality, creativity and tenacity,” Giarraputo added.

In his first year as BSP governor, Remolona carried on the works of his predecessor, Felipe Medalla, in battling persistently high consumer prices.

In a bid to tame inflation, the BSP raised its policy rate by a total of 450 basis points (bp) to a more than 17-year high of 6.5 percent, among the most aggressive tightening in Asia.

This included an urgent 25-bp rate hike during an off-cycle meeting of the BSP’s policymaking Monetary Board (MB) that Remolona presided over in October last year.

A flare-up in inflation was seen again in 2024 due to high global energy prices and the El Niño onslaught.

In July, inflation jumped to 4.4 percent, the first time this year that price growth breached the BSP’s target band again.

But the BSP now expects inflation to go on a downtrend starting in August, as lower rice tariffs reduced the risks of upward price pressures in the coming months.

Meanwhile, the economy grew 6.3 percent in the second quarter, but favorable base effects masked an anemic consumption that had been weakened by high prices and expensive borrowing costs.

To finally give the economy a shot in the arm, the BSP early this month announced a 25-bp reduction in its policy rate, its first easing move in nearly four years, and Remolona said one more cut of the same size is possible either at the October or December policy meeting of the MB.

Solid experience

This year, only three central bank governors got an A+ grade from Global Finance: Denmark’s Christian Kettel Thomsen, India’s Shaktikanta Das and Switzerland’s Thomas Jordan.

Remolona is the seventh governor of the BSP and MB chair.

He has extensive policy and operational experience in monetary policy and international finance, having worked for 19 years at the Bank for International Settlements (BIS) and 14 years for the Federal Reserve Bank of New York.

The Basel, Switzerland-based BIS is an international organization that serves as a bank for central banks, acting as a forum to promote discussion and policy analysis and a center for economic and monetary research.

From 2019 to 2022, Remolona served as professor of finance and director of central banking at the Asia School of Business in Kuala Lumpur.

He also taught at Williams College, Columbia University, New York University and the University of the Philippines-School of Economics.

Before his appointment to the MB in 2022, Remolona served as an independent director of the Bank of the Philippine Islands and chair of its risk management committee.

Philippines remains net creditor to IMF

Philippines remains net creditor to IMF

Ian Nicolas P. Cigaral
Inquirer.net
22 August 2024

The Philippines has maintained its status as net creditor to the International Monetary Fund (IMF), thanks to the country’s “strong external position” that allows it to continue to lend more than it borrows from the multilateral institution, the Bangko Sentral ng Pilipinas (BSP) said.

In a statement on Wednesday, the BSP said the powerful Monetary Board had approved the continued participation of the Philippines in the Financial Transaction Plan (FTP) of the IMF for the period of August 2024 to January 2025.

The FTP is a currency exchange arrangement between the IMF and eligible members to facilitate the Washington-based institution’s lending operations with other member countries. The IMF pays interest to FTP participants like the Philippines.

“Given that the country’s external position remains strong, with ample gross international reserves to withstand external shocks, the country has been assessed to be eligible for continued participation in the FTP,” the BSP said.

“This puts the Philippines in a favorable position to remain as a Fund financial partner, which is an indication of the country’s commitment to contribute to the global financial safety nets and support the resolution of possible crises,” it added.

In selecting member countries for inclusion in the FTP, the IMF considers the strength of balance of payments (BoP) and reserve position, as well as the stability of the exchange and financial markets. The IMF also looks into the adequacy of international reserve assets to ensure that obligations will be fulfilled during the specified FTP period.

Latest central bank data showed that the Philippines has a seven-month BoP surplus of $1.5 billion, approaching the $1.6 billion dollar windfall for the entire 2024.

That, in turn, translated to a gross international reserve (GIR) of $106.7 billion as of July, from $105.2 billion in June.

The BSP’s reserve assets consist of foreign investments, gold, foreign exchange, reserve position in the IMF and special drawing rights. The GIR serves as the country’s buffer fund during extreme economic conditions when there are no export earnings or foreign loans.

By convention, GIR is viewed to be adequate if it can finance at least three months’ worth of the country’s imports of goods and payments of services and primary income. The BSP said the amount of buffer funds as of July could cover 7.9 months’ worth of imports of goods, way above global standards.

Philippines ‘on track’ to cut poverty significantly

Philippines ‘on track’ to cut poverty significantly

The Star (Malaysia)
18 August 2024

MANILA: Despite the political noise about poverty in the country, the government remains “on track” to attain single-digit poverty rate by 2028, Finance Undersecretary Domini Velasquez said on Saturday (Aug 17).

Despite politicians’ incredulity at poverty data released by the Philippine Statistics Authority last week, “what’s important here is that we’re on track,” said Velasquez, chief economist of the Department of Finance.

“By the end of President Marcos’ administration, it will be below 10 per cent and in single digits. We’re actually on track to bring down poverty to single digits,” she added, citing the country’s economic fundaments over the past few years.

Except for three years (1998, 2009 and 2020), the Philippine economy has been growing consistently over the past 30 years.

In the past 10 years, the average growth clip was at 4.86 per cent (including the 9.5 per cent contraction in 2020) or 6.42 per cent, excluding 2020.

For the first half of 2024, preliminary data showed economic growth of 6.3 per cent, surpassing Malaysia (5.8 per cent), Indonesia (5 per cent) and China 4.7 per cent).

The Philippines is now the second fastest growing Asian economy next to Vietnam (6.9 per cent).

Velasquez said the country accomplished this through increased government spending and investments despite weak consumer spending.

Winnowing the facts

Velasquez noted that investor confidence has not waned despite the growing political noise.

“Investors are able to differentiate economic versus political [issues],” she added.

Velasquez cited the country’s recent credit rating upgrade from Japan’s largest credit rating agency, Rating and Investment Information Inc (R&I).

R&I upgraded the Philippines’ credit rating to “A-” with a stable outlook from “BBB+” last year.

At present, the Philippines holds an “A-” rating from the Japan Credit Rating Agency, “BBB” from Fitch Ratings, “Baa2” from Moody’s Ratings, and “BBB+” from Standard & Poor’s Global Ratings.

President Ferdinand Marcos Jr, who was criticised for his investment-promotion trips in the first year of his presidency, was beside himself in his social media accounts.

“Although this is the first credit upgrade under my administration, we will not stop here. We will keep giving our best to make sure that every Filipino benefits from economic growth until we break the cycle of poverty,” Marcos said.

He said the improved investment rating will “help us bring down borrowing costs and secure cheap and affordable financing for the government, businesses and ordinary consumers.”

“We can use the money we save to fund different public services like infrastructure, health-care facilities and the construction of classrooms for our learners. This will help us invest more on our people—paving the way for more Carlos Yulos in the near future,” he said, referring to the 24-year-old star gymnast who bagged two gold medals in the Paris Olympics.

The President added that the improved credit rating will also entice more investments and businesses to set up shop in the Philippines, leading to the creation of many quality jobs and higher pay for Filipinos.

Even the World Bank (WB), in its 2022 report “Overcoming Poverty and Inequality in the Philippines,” recognised that the country has made strides in reducing poverty.

“The Philippines has made significant progress in reducing poverty, but income inequality has only recently begun to fall. Thanks to high growth rates and structural transformation, between 1985 and 2018 poverty fell by two-thirds,” the WB said.

The WB said income inequality did not begin to decline until 2012 and the top 1 per cent of earners capture 17 per cent of national income while the bottom 50 per cent only gets 14 per cent. – Philippine Daily Inquirer/ANN

Forbes' 16 Richest Billionaires in the Philippines in 2024

The 16 Richest Billionaires in the Philippines in 2024, According to Forbes

Story by Esquire Philippines

08 August 2024

With the Philippine economy expanding during the first quarter, slower growth has been observed across the board. This, combined with a weaker peso, resulted in less wealth for this year. The list is based on shareholding and financial information, which covers family fortunes, including assets shared by extended families.

In the Philippines, the Sy Siblings have now skyrocketed to the top of the list, surpassing the likes of fellow tycoons like Manuel Villar, Ramon Ang, the Ayalas, and Enrique Razon Jr. The group is worth $1.3 billion less this year as a result of the year-to-year six-percent peso difference. Enrique Razon Jr. and Manuel Villar, meanwhile take the second and third spot, respectively. Villar was ranked first in last year's list.

Of course, there aren't many new names on the list as most hail from the Philippines’ wealthiest families. Additional names from the Philippines' most prominent families such as Vivian Que Azcona, the Po family, and Soledad Oppen-Cojuangco, among others, have also made appearances for this year's dollar billionaires rankings. Noticeably out of the list is William Belo, who was at the 15th spot last year with a dollar net worth of $1.3 billion (he is now down to $895 million this year). Inigo Zobel would also slide down the rankings, with a net wealth of $845 at 21st place.

Here’s a breakdown of the 16 dollar billionaires in the Philippines in 2024:

1| Sy Siblings

Net worth in 2024: $13 billion

Net worth in 2023: $14.4 billion

Industry: Diversified

Businesses: SM Group, SM Development Corp., SM Investments Corp. 

2| Enrique Razon, Jr.

Net worth in 2024: $11.1 billion

Net worth in 2022:$7.3 billion

Age: 64

Industry: Logistics

Businesses: International Container Terminal Services, Inc., Bloomberry Resorts Corp. (developer of Solaire) 

3| Manuel Villar

Net worth in 2024: $10.9 billion

Net worth in 2023: $8.6 billion

Age: 74

Industry: Real estate

Businesses: Vista Land & Lifescapes, Golden Bria Holdings, Vistamalls

4| Ramon Ang

Net worth in 2024: $3.8 billion

Net worth in 2023: $3.4 billion

Age: 70

Industry: Food & Beverage

Businesses: San Miguel Corporation

5| Isidro Consunji and Siblings

Net worth in 2024: $3.4 billion

Net worth in 2023: $2.9 billion

Age: 74

Industry: Construction & Engineering

Businesses: DMCI Holdings, Inc., Semirara Mining and Power Corp.

6| Tony Tan Caktiong and Family

Net worth in 2024: $2.9 billion

Net worth in 2023: $1.2 billion

Age: 70

Industry: Food & Beverage

Businesses: Jollibee Food Corporation

7| Lucio Tan

Net worth in 2024: $2.65 billion

Net worth in 2023: $2.4 billion

Age: 89

Industry: Diversified

Businesses: LT Group, Philippine Airlines, Asia Brewery, Tanduay Distillers 

8| Jaime Zobel de Ayala and Family

Net worth in 2024: $2.6 billion

Net worth in 2023: $2.8 billion

Age: 90

Industry: Food & Beverage

Businesses: Jollibee Food Corporation

9| Lucio and Susan Co

Net worth in 2024: $2.3 billion

Net worth in 2023: $2.3 billion

Age: 69

Industry: Fashion & Retail

Businesses:Union Energy Corp., Puregold Realty Leasing & Management, Pg Holdings, Inc., 

10| Aboitiz Family

Net worth in 2024: $2.2 billion

Net worth in 2023: $3.15 billion

Industry: Diversified

Businesses:Aboitiz Equity Ventures, Aboitiz Power, Aboitiz InfraCapital, Aboitiz Land Inc.

11| Lance Gokongwei and Siblings

Net worth in 2024: $1.9 billion

Net worth in 2023: $1.4 billion

Age: 56

Industry: Diversified

Businesses: JG Summit Holdings, Robinsons Retail Holdings, Universal Robina Corporation, Cebu Air

12| Ty Siblings

Net worth in 2024: $1.85 billion

Net worth in 2023: $2.2 billion

Industry: Finance & Investments

Businesses: GT Capital Holdings, Metropolitan Bank & Trust

13| Andrew Tan

Net worth in 2024: $1.8 billion

Net worth in 2023: $2.5 billion

Age: 72

Industry: Diversified

Businesses: Alliance Global Group, Megaworld Corporation, Empire East Land Holdings, Emperador, Travellers International Hotel Group (Resorts World Manila)

14| Vivian Que Azcona and Siblings

Net worth in 2024: $1.7 billion

Net worth in 2023: $1.2 billion

Age: 68

Industry: Fashion & Retail

Businesses: Mercury Drug Corporation

15| Po Family

Net worth in 2024: $1.7 billion

Net worth in 2023: $ 1.4 billion

Industry: Food & Beverage

Businesses: Century Pacific Food Incorporated, Century Pacific Group

16| Soledad Oppen-Cojuangco and Family

Net worth in 2024: $1.8 billion

Net worth in 2023: $1 billion

Age: 86

Industry: Diversified

Businesses: San Miguel Corporation

Philippines tops global ranking on investor relations and debt transparency

PH top performance in debt transparency report boosts public trust

By Anna Leah Gonzales
Philippine News Agency
July 7, 2024

MANILA – The Philippines topping the global ranking on investor relations and debt transparency is a testament to the proactive efforts of the Department of Finance (DOF) in boosting public trust and engagement, Secretary Ralph Recto said.

“It is very encouraging to see that the Philippines is setting a global benchmark in investor relations and debt transparency,” Recto said in a media release on Sunday.

The Philippines topped the debt transparency ranking, according to the Institute of International Finance (IIF) 2024 Investor Relations and Debt Transparency Report.

Out of 50 countries surveyed by the IIF, the Philippines scored the highest with 12.5 out of 13.

The debt transparency score assesses sovereign borrowers' data and policy dissemination practices.

It takes into account adherence to enhanced transparency practices; user-friendliness of macroeconomic and environmental, social, and governance (ESG) data formats; and availability of ESG data, among others.

The Philippines also ranked first in the survey on investor relations with a near-perfect score of 48.8 out of 50. It evaluates the overall investor relations practices of countries across 23 criteria.

Recto said transparency is most important, especially regarding government debt, to clearly show the public where their taxes and borrowings go.

“This transparency reflects the Marcos, Jr. administration’s commitment to managing the country’s finances prudently and sustainably to ensure a future of fiscal stability for Filipinos," Recto said.

“Through constant dialogues, we equip our creditors and investors with the knowledge and insights needed to make informed assessments of our country's performance,” he added.

The Philippines’ debt transparency initiatives are being led by the Bureau of the Treasury (BTr), which releases to the public regular comprehensive reports on the central government's fiscal outturns and debt portfolio.

These include the National Government Cash Operations Report, which outlines the actual monthly and annual revenue collections, expenditures, and financing of the national government; and the National Government Debt report monthly, with details of the outstanding obligations of the government.

The government also releases an annual Fiscal Risk Statement that outlines current trends concerning macroeconomic and fiscal performance, public debt, monetary policy, as well as potential risk exposure and mitigation measures in place.

The BTr likewise releases the auction calendar to provide market participants with insight about the intended tenor and volume of treasury bills and bond issuances.

On strengthening investor relations, the DOF engages in multiple domestic and international Philippine Economic Briefings (PEBs) to serve as an avenue for the government to provide investors with updates on the country's economic and financial performance, as well as developments on key policies and programs.

The PEBs provide investors with the opportunity to share their insights and express their concerns with the government for better policymaking.

Since Recto took office, the Philippines already held PEBs in Manila, the United States and Japan. (PNA)

Philippines, 4 Asian countries to link instant payment systems

Philippines, 4 Asian countries to link instant payment systems

Story by Keisha Ta-Asan 

Philstar Global

07 July 2024

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) and its global partners have completed the blueprint for the third phase of its Nexus Project and is now preparing for the final phase, which includes the live implementation of cross-border payments connectivity globally.

The BSP, the Bank for International Settlements (BIS) and four other Asian central banks will now work on the next stage of connecting their instant payment systems (IPS) seamlessly.

“Phase four will see the Central Bank of Malaysia, the BSP, the Monetary Authority of Singapore, the Bank of Thailand and domestic IPS operators – who worked together in phase three – joined by the Reserve Bank of India, expanding the potential user base to India’s Unified Payments Interface (UPI), the world’s largest IPS,” it said.

Bank of Indonesia will continue to be a special observer to the project. The Indonesian central bank took part in phase three and will continue in this capacity to follow the project in the next stage of its development.

To facilitate live implementation, the central banks and IPS operators have agreed to establish the Nexus Scheme Organization (NSO). The NSO will be responsible for managing Nexus.

“The NSO will be wholly owned by the central banks and/or IPS in participating countries, depending on the specific domestic structures,” it said.

BSP Governor Eli Remolona Jr. said the central bank would continue to work with the Philippine payments industry, the BIS and other interested countries in the live implementation of Project Nexus.

“Empowered by a shared vision of efficient and reliable cross-border payments, the collaboration between the BIS and ASEAN central banks has been rather effective, and I’d like this to continue,” Remolona said.

“Central banks have always played a role in payments as a public good. With Nexus, this role will be extended to cross-border payments, maximizing the network effects,” Remolona said.

Remolona added that the Nexus Project would provide overseas Filipinos a cheaper and faster way to send money back home. It will also facilitate the globalization of Filipino small and medium scale enterprises.

Nexus is designed to standardize the way domestic IPS connect to one another. The IPS operator only needs to make one connection to Nexus. This single connection would enable the IPS to reach all other countries in the network.

The BIS will play an advisory role as Project Nexus sets up an operational scheme and opens to potential new participants across the globe.

It will also facilitate cooperation among central banks and IPS operators of India, Malaysia, the Philippines, Singapore and Thailand as they work towards live implementation.

BIS general manager Agustin Carstens said the Nexus Project could connect a market of 1.7 billion people globally, providing them a means to do instant payments in a faster and cheaper way.

“This is the first BIS Innovation Hub project in which central banks are moving towards a live phase together with instant payment providers,” he said.

“When implemented, it will greatly enhance cross-border payments in line with both the G20 cross-border payments program and our mission to develop public goods in the technology space to support central banks and improve the functioning of the financial system,” he added.

Philippines ranks first in Asia for budget transparency

Philippines ranks first in Asia for budget transparency

By: Jean Mangaluz - Reporter 
INQUIRER.net 
May 30, 2024

MANILA, Philippines — The Philippines ranked first in Asia for transparency in the 2023 Open Budget Survey (OBS).

The OBS is a survey done by the international non-government organization International Budget Partnership, which is based in the United States. The survey measures transparency, budget oversight, and public participation.

According to the OBS Survey, the Philippines got a 75 out of 100 for transparency. A score of 61 and above indicates that a country is releasing enough material to the public to keep it informed.

“The Philippines climbed seven points in the OBS for transparency, garnering an open budget index score of 75 out of 100. This is a marked improvement from the score of 68 in 2021, beating the government’s target score of 71 under the Philippine Development Plan 2023 – 2028,” said the Department of Budget and Management (DBM) in a statement on Thursday.

Globally, the Philippines ranked 15th out of 125 countries for budget transparency.

The Philippines also garnered an 83 out of 100 for budget oversight, with both legislative and audit oversight being deemed adequate. The country ranked sixth in the world for budget oversight.

Lastly, the Philippines only got a score of 33 out of 100 for public participation, meaning that the OBS found that there were few opportunities for the public to engage in “meaningful participation in the different stages of the budget process.”

“This is very welcome news, especially as we are also celebrating this year’s Open Gov Week and solid proof that the administration of President Ferdinand R. Marcos Jr. works for and with the people to promote good governance in the country. Rest assured that the DBM will continue its best practices in ensuring a transparent, participatory, and accountable People’s Budget,” Secretary Amenah F. Pangandaman said in a statement.

Recto: PH an 'economic giant' by 2033

Recto: PH an 'economic giant' by 2033

By Anna Leah Gonzales
Philippine News Agency
May 27, 2024

MANILA – The Philippine economy is expected to continue posting strong growth and is seen to be one of the economic giants by 2033, Department of Finance (DOF) Secretary Ralph Recto said on Monday.

In his speech at the Philippine Economic Briefing at the Philippine International Convention Center in Pasay City, Recto said global research firms and analysts expect the Philippines to grow by 5.8 to 6.3 percent this year, outperforming ASEAN economies.

For 2025, Philippine economic growth is projected to hit 5.9 percent to 6.5 percent.

"This trajectory puts us firmly on course to become a trillion-dollar economy in less than a decade. This means that by 2033, our economy will nearly triple in size, placing us in the league of economic giants like China, Japan, India, and South Korea," Recto said.

"And we are expected to continue outpacing the growth of Asia's economic powerhouses in the years to come. Fast forward to 2075, the Philippines will overtake France to become the 14th largest economy in the world," he said.

Recto assured the public that the government is addressing bottlenecks to encourage investments in high-priority sectors.

"These include infrastructure, renewable energy and power, critical minerals, financial services, healthcare, consumer and retail, manufacturing, and ITBPM (information technology and business process management), among others," he said.

Recto said the government is also intensifying efforts to address investor concerns and is doubling efforts to harness the country's workforce.

He said these efforts aim to provide pathways out of poverty for about 14 million Filipinos, or cutting poverty incidence to 9 percent, before or at the end of the President's term.

"This is the single most important number that we aim to achieve. Even with headwinds along the way, there are a lot of reasons to be confident and excited about our nation’s future," he added. (PNA)

Queen Maxima of the Netherlands to visit Philippines

Queen Maxima to visit Philippines, to push financial inclusion

Story by Michael Punongbayan
Philstar Global
18 May 2024

MANILA, Philippines — Queen Máxima of the Netherlands is scheduled to visit Manila next week in her capacity as United Nations Secretary-General’s Special Advocate for Inclusive Finance for Development (UNSGSA).

She is expected to stay from May 21 to 23 and meet with President Marcos and top finance officials.

The visit will focus on advancing key foundational building blocks for financial inclusion – including connectivity, digital identification and digital payments – as well as enhancing financial health and resilience against economic and climate-related challenges for Filipinos.

In recent years, the Philippines has seen considerable progress in financial access, with the proportion of adults owning a bank account rising from 26.6 percent in 2011 to 51.4 percent in 2021, as reported by the World Bank Global Findex.

However, despite these gains, data also show that the Philippines still has approximately 37.6 million unbanked adults, with the Findex data also highlighting significant concerns about financial resilience among Filipinos.

The primary financial worry for 42 percent of adults is covering medical costs in the event of a serious illness or accident, followed by concerns over managing monthly expenses (24 percent) and securing funds for old age (17 percent).

The Special Advocate will also learn about a tech-enabled platform that empowers small sari-sari storeowners to grow their businesses, digitize their operations and integrate into large supply chains.

Apart from President Marcos, Queen Maxima will have high-level meetings with Finance Secretary Ralph Recto, Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. and other key policymakers and leaders for discussions aimed at fostering partnerships and support continuous innovations in the financial sector.

Queen Máxima will also meet with Asian Development Bank president Masatsugu Asakawa to explore collaborative opportunities at a regional level.

Additionally, a focus group discussion with a diverse contingent of female financial users will provide insights into how financial products can effectively address the needs of women and enhance their financial health.

Another highlight of the visit will be a demonstration of the Co-Develop’s South-East Asia Center for Digital Public Infrastructure at Ateneo de Manila University.

By sharing insights and forging connections between global financial initiatives and local realities, the UNSGSA visit aims to inspire continued progress and innovation in the Philippines’ financial sector.

Queen Maxima, also in her capacity as the UNSGSA, previously visited the Philippines from June 29 to July 1 in 2015.

Spring for PH-ASEAN tech economy

From winter to spring for PH, Asean startups

Story by Amanda Murphy, Sandeep Uppal 
Inquirer.net
17 May 2024

While much has been written about a “funding winter,” one could be forgiven for forgetting that Southeast Asia remains home to the world’s fastest-growing digital economy: the region’s digital economy expanded by 12 percent in 2023 and is expected to record a compound annual growth rate of 16 percent until 2030.

Fundraising figures, however, do show how challenging it has been for the sector of late. The amount of capital raised by startups in the region more than halved in 2023, and the number of deals fell significantly.

As a result, many of the Philippines’ digital economy entrepreneurs have had to dig into personal savings and tap family and friends to keep their startup dreams alive as a freeze in funding drags on despite the region’s many attractions for investors.

We are also increasingly seeing the region’s growing appeal to investors in discussions with clients, including at the recent Global Investment Summit hosted by HSBC.

This sentiment is also borne out in a recent HSBC survey of businesses operating in the Association of Southeast Asian Nations (Asean), 74 percent of which intend to increase their investment in the region in 2024. The same enthusiasm is also observed in the Philippines where 72 percent locally based businesses plan to expand into new markets in the region.

For Filipino startups, financing is key

Capital is the lifeblood of innovative companies, which must often invest heavily in new technologies and platforms before they can commercialize them.

In the Philippines, funding is a key constraint for startups. While there are several promising startup companies, financing is scarce as venture capital arms in the country are focused mainly on supporting mature digital sectors such as fintech, media, entertainment, and e-commerce.

Against that backdrop, HSBC has enhanced our offerings to digital-economy companies, launching a dedicated $1-billion Asean Growth Fund that can help finance companies with a proven track record in generating a sustainable cash flow stream.

Alongside our own efforts, it’s also great to see government programs leaning in to support startups for digital economy firms in the region and the Philippines.

The government has launched two landmark laws that define policy to foster the growth of tech startups through the Philippine Innovation Act and the Innovative Startup Act, both enacted in 2019 and designed to spur technological innovation to achieve economic growth and sustainable development.

Governments in Singapore, Indonesia, Vietnam, Thailand, and Malaysia have all also rolled out important incentives to foster innovation and the creation of tens of thousands of new technology startups.

Other governments in the wider region are taking note as well. A new $1.3-billion government fund was unveiled during an Asean-Australia summit in Melbourne in early March. The fund will provide loans, guarantees, equity, and insurance for projects that will boost the Asean-Australia corridor—something we see in action from visits around the region.

Smart strategy

To sustain their growth, digital economy companies will need to focus on controlling costs and lifting revenues. They must also reconsider their approach to funding to manage their cost of capital and secure their long-term viability.

Exploring partnerships with firms in other markets can also allow startups to expand across borders or develop their capabilities without having to make substantial investments themselves. Securing the right partner can also boost the credibility of a startup, enhance its appeal to customers, and—particularly relevant in the current climate—make it more attractive to potential investors.

Such intra-regional initiatives also align with the aims set out in Asean’s digital masterplan for 2025, which was reaffirmed at a meeting of the bloc’s digital ministers earlier this year.

As both Asean and the Philippine digital economy expand, cross-border e-commerce is also creating growth opportunities for traditional and new economy firms. Making it easier for customers—whether they are consumers or businesses—to pay through a company’s digital platforms can be an important revenue driver over the years ahead.

From winter to spring

While many digital economy firms in the Philippines and Asean found it challenging to raise capital in the past two years, there are reasons to be more optimistic in 2024.

The recovery is driving consumption among an increasingly affluent population of 670 million, as one person enters the middle-income bracket every two seconds on average.

The region also has one of the highest digital penetration rates in the world, with the Philippines ranking second globally and first in Asia for internet usage.

Hence, this is further increasing e-commerce, which has passed the $100-billion revenue mark last year. With progressive approaches to financing, the strong fundamentals of the region will help drive the growth ambitions of businesses in the Philippines. After all, after the funding winter comes a thriving spring. —Contributed