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Chiz: 99-year Land Lease Law to help promote PHL as competitive investment hub

by Contributor
written by Contributor

SENATOR Francis “Chiz” Escudero is urging the national government to aggressively market the new 99‑year lease terms under Republic Act No. 12252, saying the measure must be positioned as a long‑term anchor for jobs, capital, and development.

Escudero issued the call as the Philippine economy expanded by only 4.4 percent in 2025, below the government’s 5.5 to 6.5 percent target and slower than the 5.5 percent posted in 2024. He warned that the country must compensate for weaker growth by strengthening investor confidence and accelerating structural reforms.

“The law is already in place. What we need now is aggressive promotion and clear messaging to investors that the Philippines is ready for long‑term partnerships,” he said.

The veteran legislator noted that foreign direct investment inflows continue to soften, underscoring the urgency of attracting long‑term capital. Latest data show that FDI net inflows reached only around $7.1 billion from January to November 2025, a significant decline from the $9.08 billion recorded in the same period in 2024.

He said this contraction, driven by weaker intercompany borrowings and more cautious global sentiment, signals that the Philippines must move decisively to restore investor confidence and compete more aggressively for capital in the region.

The senator also added that the labor market remains fragile, with the unemployment rate holding at 4.4 percent in December 2025, equivalent to approximately 2.26 million jobless Filipinos. Youth unemployment also remains in double digits, reflecting persistent structural challenges in job creation.

Escudero stressed that without stronger investment inflows, particularly in sectors requiring long‑term capital, the country risks prolonging underemployment and missing opportunities to absorb its growing young workforce.

He emphasized that reforms like RA 12252 can help reverse these trends by encouraging investors to commit to projects that generate stable, high‑quality jobs over decades.

The Bicolano senator pointed to agencies such as the Philippine Economic Zone Authority (PEZA) and the Subic Bay Metropolitan Authority (SBMA) as key drivers in marketing ecozones and tourism hubs as long‑term destinations for capital, jobs, and innovation.

PEZA alone approved P260 billion in investments in 2025, while SBMA continues to attract logistics, manufacturing, and tourism projects that require long‑gestation capital.

“In times of slowdown, we must think in centuries, not quarters. RA 12252 ensures that those who invest here will stay for generations, creating stability that outlasts economic headwinds,” he added.

Escudero emphasized that RA 12252, which amends RA 7652 or the Investor’s Lease Act, extends land leases for foreign investors from 50 years to 99 years—a step he described as a structural reform that can help cushion the impact of weaker growth and provide certainty for long‑term projects.

He noted that sectors such as ecozones, tourism, renewable energy, and agribusiness stand to benefit most. These industries require heavy capital and long gestation periods, making the extended lease terms a decisive factor in investment decisions.

Escudero, the law’s principal author, added that reforms must continue even when growth slows. “We cannot pause structural change because of short‑term numbers. On the contrary, we must push harder so that the next cycle of growth is stronger and more resilient,” he explained.

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BusinessScience & Technology

How Payoneer is helping Filipino creative innovators go global

by Contributor
written by Contributor

THE PHILIPPINES’ creative economy is one of the country’s fastest-growing sectors, contributing 7.3 percent to GDP and creating 7.51 million jobs in 2024, according to the Philippine Information Agency. 

As global demand for Filipino creators and digital service providers grows, the ability to get paid quickly and securely has become essential. Payoneer supports this expansion by providing tools that simplify international payments and help creative businesses access opportunities worldwide.

Among the firms rising with this momentum is Leveret Group, a Filipino-founded studio that creates custom games and interactive digital experiences for brands and organizations. The group uses gamification, which applies game elements to non-game settings, so learning, training, or customer interaction becomes more engaging and easier to understand.

“People like to play, and there’s no rule that says work has to be boring,” said Ria Lu, President and CEO of Leveret Group. “We design systems that motivate people through play, so routine tasks or training become more enjoyable.”

Founded in 2021, Leveret began as a small remote team in the Philippines and now works with clients in the United States, Australia, and Singapore. The company is focusing on the Asia-Pacific region, which is currently the largest and fastest-growing market for gaming and gamification.

“The growth is driven by Southeast Asia as a major force, Japan, Korea, and China as creative powerhouses, and Australia and New Zealand as very active markets,” Lu said.

Managing payments and contracts across different countries is a key part of that expansion. Monique Avila, Senior Director of Customer Success for APAC at Payoneer, said that seamless payments help Filipino entrepreneurs strengthen their global presence. 

“Creators thrive when they can focus on their craft instead of the logistics of getting paid,” said Avila. “With Payoneer, teams like Leveret can manage global transactions with ease and continue expanding their work across borders.”

Since its founding, Leveret has relied on Payoneer to send and receive payments globally with ease. With multi-currency accounts, the team has eliminated the complexities of international transfers, enabling them to manage transactions quickly and efficiently. 

Leveret’s projects go beyond entertainment. The team develops games for change, most commonly known as serious games, which are interactive experiences that address education, health, and social issues.  

For one NGO, Leveret created a live-action interactive film where the story changes based on user choices to help strengthen learners’ critical thinking.

An interactive film by Leveret Group turns critical learning into play.

Looking ahead, Leveret plans to balance its business between client projects and original game development in the coming years. “We want to release our own titles,” Lu said. “When it’s your own product, it continues to create value over time. That’s how we sustain creativity in the long term.”

For Ria, going global is both a challenge and a necessity. “If you really want to make it as a creative entrepreneur, you have to expand,” she said. “Technology and financial platforms like Payoneer make it possible.”

As the Philippines builds its reputation as a creative hub, companies like Leveret show how Filipino talent can compete, create, and lead across borders—powered by tools like Payoneer that simplify international payments and let them focus on what they do best. 

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Opinion

The perfect storm that is the Philippines

by Contributor
written by Contributor

AS EXTREME climate is evolving into the new norm in the Philippines, it will exacerbate the political and economic storms, which loom ahead.

As typhoon Tino (Kalmaegi, internationally) left over 200 Filipinos dead while affecting nearly 2 million people, President Marcos Jr declared “a state of national calamity.” 

After the super typhoon Uwan (Fung-Wong) will add to the devastation, mass protests against huge flood control corruption are expected in the country.

In 2022, the Marcos Jr government pledged it would build on the legacy of the Duterte years and make Filipinos more prosperous and more secure. Critics claim both objectives have failed. 

Billions of dollars lost to corruption

On July 27, Senator Panfilo Lacson warned that half of the 2 trillion pesos ($17 billion) allocated to the Department of Public Works and Highways (DPWH) for flood control projects may have been lost to corruption in the past 15 years.

And yet, almost in parallel, President Marcos Jr stated his administration had implemented over 5,500 flood control projects and announced new plans amounting to more than $10 billion over the next 13 years. 

Ever since then, Manila’s political class has been swept by allegations of corruption, mismanagement, and irregularities in government-funded flood management projects. In August, the Senate Blue Ribbon Committee launched a high-profile investigation into the irregularities, focusing on the “ghost” projects, license renting schemes, and contractor monopolies. 

Corruption has long been pervasive in Philippine politics, economy and society. In the Corruption Perception Index, the country has consistently scored among the worst in the region. Even in peacetime, it is at par with the civil war-torn Sierra Leone and oil-cursed Angola. 

In the era of former President Duterte, corruption fight was spotlighted. Now it thrives again. According to surveys, 81% of Filipinos believe corruption has worsened since martial law was declared 53 years ago. It is compounding misguided economic policies.

Rising trade deficits, slowing investment

In the Duterte era, exports were led by electronics, with significant growth in tourism and business process outsourcing. Those times are now gone. 

In the Duterte era, the effort was to attract multinationals, particularly Chinese firms, to serve as anchor companies that would foster Philippine suppliers. But due to the government’s geopolitics, Chinese – and increasingly Western – multinationals see too much economic and geopolitical risk in the country. And so, the investments that could have come to the Philippines have gone to Vietnam, Malaysia, and Thailand in the region.

Recently, even the US Investment Climate Statement for the Philippines highlighted persistent corruption, a slow and opaque bureaucracy, and poor infrastructure as major disincentives to investors. 

Lagging tourism

In Southeast Asia, Chinese tourism has played a vital role in the post-pandemic recovery. Before the pandemic, Chinese tourists accounted for 40-60% of the regional total. 

Subsequently, regional recovery was fueled by Chinese tourism. The only exception? The Philippines. 

In 2019, Chinese tourist arrivals in the country soared to over 1.7 million. As of September 2025, the Philippines has reported less than 204,000 Chinese arrivals for the year, a figure that is far, far below the government target. The country was banking on a 2-million visitors from China. 

The sharp decline is attributed to geopolitical tensions, the suspension of the e-visa program, and even safety concerns.

Even if the 2025 total would climb closer to 300,000, that would be just 15-20% of the 2019 level. It’s a catastrophic missed opportunity. 

Sources: Trade deficits: Author, Philippine Statistics Authority; Tourism: Author, National Statistical Coordination Board Philippines; Exchange rate: Bangko Sentral ng Pilipinas 

BPO outsourcing at risk

The digital economy is a major component of the GDP. But in the absence of domestic ICT anchor firms, the sector is at the mercy of Western offshoring. And that spells huge trouble at a time when the West prioritizes trade wars, as evidenced by Manila’s costly losses in US tariff wars. 

Meanwhile, geopolitics has alienated investments by Chinese ICT giants, which could have catalyzed ICT ecosystems in the country.

And there’s worse ahead. The Philippine outsourcing sector is a $30 billion industry that accounts for 7% of the Philippines’ GDP and commands 15% of the global market. Yet, one-third of its jobs in the Philippines are at risk from artificial intelligence (AI), with those in the BPO sector most vulnerable. Sadly, college-educated, young, urban, female, and well-paid workers in the services sector will be most exposed.

In addition to AI, US protectionist initiatives could cause job devastation in the Philippine outsourcing industry. Introduced in July, the bipartisan “Keep Call Centers in America Act” proposes to penalize US companies that offshore a significant portion of their call center jobs. The recent Halting International Relocation of Employment Act (HIRE Act) aims to curb outsourcing by imposing a 25% excise tax on payments to foreign workers.

If these realities kick in, US vulture capitalists can be expected to target and short the Philippines, which could compound challenges, as in the past.

Economic growth, missed opportunities

Source: Author, data from IMF

In early 2024, US news agency Bloomberg asked President Marcos Jr whether the Philippines could achieve an 8% growth rate. “Why not?” the president replied. “Yes, I think it is, I think it is doable.” 

Yet, at the time, GDP year-on-year growth decelerated to barely 5.2%. 

Have things got better? No. 

In 2025, the government’s target was reduced to 5.5-6.5%. Just weeks ago, the International Monetary Fund (IMF) downgraded the Philippine growth projection to 5.4% this year. More recently, economic growth slowed to just 4.0% in the third quarter – the slowest since early 2021, when the COVID-19 pandemic caused a contraction.

Unsurprisingly, critics claim the incumbent economic policies have failed. Here’s a thought experiment about the extent of that failure. During the Duterte era, Philippine GDP increased from $329 billion to $404 billion, despite the pandemic plunge. On the back of that performance, IMF expected the Philippine GDP to climb close to $640 billion by 2028.

Current IMF estimates suggest that by 2028, the Philippine GDP will be less than $560 billion. So, the government is set to underperform by $80 billion. 

That’s the cost of missed opportunities – although the final cost could prove higher.

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Dr. Dan Steinbock is an internationally recognized strategist of the multipolar world and the founder of Difference Group. He has served at the India, China and America Institute (USA), Shanghai Institutes for International Studies (China) and the EU Center (Singapore). For more, see https://www.differencegroup.net

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Opinion

MONDAYS WITH PATMEI  | Davao’s cultural and creative industries join forces

by Patmei Bello Ruivivar
written by Patmei Bello Ruivivar

Every September of each year is declared as the “Philippine Creative Industries Month” to promote the goods, products, and services of the country’s creative industries and to raise awareness of the creative industries’ role in national development.

This is in support of Republic Act 11904 or the Philippine Creative Industries Development Act (PCIDA), signed into law on July 28, 2022. Under the law, the Philippine Creative Industries Development Council (PCIDC) will lead the development and promotion of the creative industries nationwide. The Department of Trade and Industry (DTI) is the primary agency that is responsible for the law’s implementation.

At their core, creative industries are sectors of the economy that generate wealth and jobs through the “creation and development of intellectual property or artistic talent.” Essentially, they are businesses whose primary value comes from creativity, imagination, and ideas.

A simpler way to think of them is — industries that create products and services based on symbolic, artistic, and cultural value, rather than just pure utilitarian function.

An example is a chair. Its utilitarian function is an object to sit on. It becomes a creative product if the chair is designed by an artisan inspired by traditional culture or by a furniture designer with a unique aesthetic. Its value lies in its design, brand, and cultural significance.

Key characteristics of creative industries are: (1) It is idea-based, which means their primary raw material is human creativity, imagination, and intellectual capital; (2) It is high risk because it is difficult to predict what will be a commercial success (whether a movie, book, or fashion trend will become a hit); (3) It is driven by intellectual property (IP) wherein products are often protected by copyright, trademarks, patents, and design rights; and (4) It has symbolic value as they create meaning, experiences, and identity.

The products and services in the creative industries involve a creative chain, which is a complex ecosystem. It begins from creation (original idea) then production (turning the idea into a product), then distribution (getting the product to the market), then exhibition/consumption (where the audience experiences it).

There is no single universally agreed upon list, but the Philippine government has identified the following nine (9) key domains within the creative economy: (1) Audiovisual Media – this includes content creation and distribution, such as film, television, and other visual media; (2) Digital Interactive Media – this encompasses software, mobile applications, electronic games, and other digital content; (3) Creative Services – this includes advertising. marketing, research and development, and other artistic and design-related services; (4) Design – this covers various design fields such as fashion, graphic design, product design, architectural and interior design; (5) Publishing and Printed Media – this involves the creation and distribution of books, magazines, newspapers, and other printed materials; (6) Performing Arts – this includes music, theater, dances, and other live performances; (7) Visual Arts — this includes painting, sculpture, photography, crafts, and other fine arts; (8) Traditional Cultural Expressions – this focuses on the preservation and promotion of indigenous cultural heritage; and (9) Cultural Sites – this refers to heritage sites, museums, and other cultural venues.

Creative industries are similar to cultural industries, but there is a slight distinction. Cultural industries are more focused on heritage, the arts, and activities that have a strong symbolic and cultural value. On the other hand, creative industries is a broader, more modern term that includes cultural industries but also encompasses commercial, innovation-driven sectors where creativity is a key input. Cultural industries emphasize cultural value while creative industries emphasize the economic potential of creativity.

In other words, creative industries are the business of imagination.

And it is big business. The global creative industries are a major economic force valued at approximately USD 2.9 trillion in 2024 and projected to reach USD 4.24 trillion by 2033, growing at a compound annual growth rate of 4.29 percent.

Creative industries contribute 2-7 percent to the gross domestic product (GDP) of developed economies and are among the fastest-growing sectors globally. In emerging markets and developing economies, creative industries contribute 4-15 percent to GDP.

In terms of employment and job creation, creative industries support approximately 50 million jobs worldwide, with a significant portion held by youth and women. These industries are reported to have a strong multiplier effect — for every USD 1 spent in the creative sectors, it generates USD 2.5 in economic output.

In the Philippines, the creative economy at current prices amounted to PHP 1.94 trillion in 2024, according to the report by the Philippine Statistics Authority (PSA) released last March 20, 2025. This represents an 8.7 percent increase from PHP 1.78 trillion in 2023. This accounted for 7.3 percent of the country’s GDP in 2024.

The symbols and images domain — which includes the manufacturing, renting, and trading of visual designs and symbols across various products like fashion, furniture, jewelry, toys, visual arts, and design — accounted for the largest share at PHP 640.29 billion or 33 percent of the total creative economy in 2024.

Employment in creative industries increased to 7.51 million in 2024 from 7.23 million in 2023, indicating an annual growth of 3.9 percent. The share of employment in creative industries of the total employment in the country was at 15.4 percent in 2024.

In terms of employment in the creative industries, traditional cultural expression activities registered the highest share at 36.6 percent in 2024.

As Davao City ramps up its push to be a leading creative city, our local cultural and creative industries have joined forces to create a harmonized roadmap with the support of the DTI, the National Commission for Culture and the Arts (NCCA), the Mindanao Development Authority (MINDA), the City Government of Davao, and the Conrado and Ladislawa Alcantara Foundation, Inc. (CLAFI).

Davao’s startup community is having its 4th Davao StartUp Week on September 20-27, 2025, with the theme: “Grassroots, Global Reach: Scaling Innovation from the South.” A lot of innovative solutions from Davao and Mindanao startups will be pitched to government and private investors.

Meanwhile, the culture and arts community is coming together for the first-ever Davao Culture, Arts and Heritage Summit on September 27-28, 2025, to be held at the Holy Cross of Davao College (first day) and the Almendras Gym (second day). All the cultural and creative domains will be represented in the summit, and the aspirations, challenges, and opportunities of each domain will be gathered to serve as a guide for the roadmap that will be created. This will be the common reference for the implementation of the city’s culture and arts ordinance and its inventions and innovations ordinance to promote and support Davao City’s cultural and creative industries.

This is a result of people’s initiative — artists, artisans, creatives, academics, entrepreneurs, non-government, and socio-civic organizations coming together to promote creativity in our city. A testament to the pioneering Davaoeño spirit of innovation and community.

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Business

Payoneer’s VIP connect empowers cross-border growth for Filipino SMBs

by Contributor
written by Contributor

PAYONEER (NASDAQ: PAYO), the global financial technology company powering business growth across borders, reaffirmed its commitment to Filipino SMBs at the Manila edition of its annual, anticipated flagship event VIP Connect, themed “20 Years of Empowering Businesses to Go Global”. This event brought together professionals from e-commerce, IT, marketing, and healthcare, to name a few.

The Philippines remains a priority market for Payoneer, anchored by its role as a global outsourcing hub. In 2024, the IT-BPM sector generated $38 billion, employed 1.82 million professionals, and contributed 9% to GDP. The country’s 1.5 million gig workers also cement its position as a leading source of skilled talent for remote work and outsourcing.

“The country’s rich talent pool and fast-growing outsourcing industry make it a vital hub for global business, and we are here to ensure Filipino entrepreneurs have the tools and support to thrive on the world stage,” said Monique Avila, Payoneer’s head of customer success for APAC. She emphasized Payoneer’s role in enabling seamless cross-border payments in 190+ countries and territories, across 10 currencies, with access to global marketplaces and SMBs worldwide.

For nine years, Payoneer has been a trusted partner for Filipino businesses of all sizes, supporting their global expansion through reliable cross-border payment capabilities. At VIP Connect Manila, industry leaders and Payoneer customers shared their growth stories. 

In his keynote, Mon Macutay, CEO of Big Ideas PH, addressed the challenge of delayed client payments, sharing how technology—and Payoneer’s tools—helped him strengthen operational resilience. EJ Hamodiong, CEO of VH BPO, likewise credited Payoneer for enabling his company’s international expansion and ability to serve global clients with confidence.

During the panel, long-time customers Ian Lawrence Logan, executive director of Ardent Paralegal and Business Solutions and Regine Regencia, CEO of Strategic Assistant Services, shared how Payoneer has grown into a true growth partner—from delivering timely support through dedicated account managers to providing networking opportunities such as the VIP Connect.

The event also marked the launch of Payoneer Workforce Management (WFM), a solution that simplifies hiring, onboarding, and paying workers across 160+ countries without the need to set up a local entity. Formerly known as Skuad, Payoneer WFM ensures compliance with local employment laws and offers benefits such as insurance, workspace access, visa documentation, payroll, and more—while giving businesses access to Payoneer’s network of over one million skilled professionals worldwide.

“Workforce Management is a natural extension of what Payoneer already does best—removing barriers for businesses to operate globally,” said Tarun Gadhok, senior director of Account Management WFM at Payoneer.

Payoneer also introduced new platform features that make getting paid faster and easier, including branded tax-compliant invoicing, quicker bank withdrawals, and smarter FX tools with real-time USD-to-PHP alerts. Together, these solutions reinforce Payoneer’s commitment to innovation—simplifying cross-border transactions, enhancing marketplace integrations, and providing reliable support so SMBs can scale across borders with confidence.

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