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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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Business

Private wealth investors are seen to adopt more disciplined, opportunity-driven asset allocation in 2026, says Metrobank

by Contributor
written by Contributor


PRIVATE wealth investors are entering 2026 with a more disciplined, opportunity-driven approach to asset allocation—one defined by selective risk-taking, regional differentiation, and broader diversification across asset classes, according to Metropolitan Bank & Trust Co. (Metrobank).

Rather than broad, market-wide positioning, high-net-worth and ultra-high-net-worth clients are increasingly focusing on where risk is best rewarded. Metrobank has observed a clear shift toward Asia and Emerging Markets, where valuations remain more compelling, and earnings prospects appear more resilient compared with developed markets, which continue to face policy uncertainty and elevated expectations.

“Investors are no longer simply chasing returns; they are being far more selective about how and where capital is deployed,” said Ma. Cristina Gabaldon, Metrobank head of investment management. “This has led to more differentiated portfolios that reflect both opportunity and caution.”

Equities remain the primary growth engine for medium-risk private wealth portfolios as these investors maintain overweight positions relative to fixed income. Exposure is increasingly channeled through exchange-traded funds that access global and regional equity allocations, particularly in Asia, where structural themes such as semicon companies benefiting from artificial intelligence and better valuations continue to drive investor interest.

At the same time, investors are adding select fixed-income exposure to improve portfolio resilience through active mutual funds. These mutual funds provide global credit exposure, expertise in duration management, access to agency-backed securities, and other specialized segments. Fixed income exposure acts as a stabilizer in a very volatile market amid expectations that interest rate cycles may turn more supportive later in the year.

A key feature of this disciplined approach is the growing role of alternative assets. Metrobank has seen rising allocations to commodities such as gold and silver, which are increasingly viewed as strategic hedges against geopolitical risks and currency volatility. These assets are commonly accessed through exchange-traded funds, allowing investors to balance protection and liquidity.

Interest in digital assets is also evolving, particularly among younger, investment-savvy ultra-high-net-worth clients. While still tactical in nature, cryptocurrencies and related products are being used to complement traditional assets and provide diversification.

In contrast, appetite for private equity, real estate, and hedge funds remains muted, as higher financing costs continue to weigh on sentiment toward less liquid assets.

Overall, the asset allocation trends point to a more disciplined and opportunity-driven mindset among private wealth investors in 2026, one that emphasizes selective risk-taking, regional differentiation, and diversification across asset classes. Portfolios are becoming more intentional, anchored on equities for growth, supported by selective fixed-income, and complemented by alternatives that enhance risk management.

This shift reflects a more mature investment mindset,” Gabaldon said. “Private wealth investors are building portfolios that are not just positioned for upside, but are also designed to navigate uncertainty in a more fragmented global market.”

As market outcomes become more differentiated, private wealth investors are placing greater value on active advisory, risk and return trade-offs, and access to diversified investment solutions.

Metrobank has a team of wealth experts that supports high-net-worth and ultra-high-net-worth clients with curated global and regional investment strategies, disciplined portfolio construction, and timely market insights aligned with clients’ evolving financial goals.

By combining deep local market expertise with global investment access, Metrobank continues to help clients navigate uncertainty, capture long-term opportunities, and build resilient portfolios in a rapidly changing investment landscape. Get valuable research and information from our team of financial experts to help you make informed investment decision, visit Wealth Insights (www.wealthinsights.ph) for market updates, portfolio advice, and investment ideas and insights.

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Seb serrano
Business

Financial analyst POV: 2026, the ‘quiet comeback’ year

by Contributor
written by Contributor

AFTER a bruising 2025, many executives are entering 2026 with a familiar mix of caution and hope. Last year tested leadership teams on multiple fronts: domestic disruptions, corruption-related confidence concerns, weaker investment momentum, and renewed external pressure from global trade frictions, including the lingering threat of US tariffs. For many companies, strategy meetings became less about expansion and more about survival: particularly protecting margins, defending cash, and keeping operations stable amid volatility.

But here is the thing: 2026 does not look like a blockbuster year. It looks like something more realistic and more useful for disciplined operators. From a financial analyst’s lens, this is shaping up to be a “quiet comeback” year: steady growth, manageable inflation, and policy conditions that can support business. That is, if you translate macroeconomic signals into decisive execution.

A recovery, not a victory lap

Multilateral institutions are converging on a modest rebound. GDP growth forecasts cluster around the 5% to 6% range, anchored by resilient domestic consumption, easing inflation versus prior highs, and a more supportive monetary policy environment. The IMF sees a sub-6% growth through 2027. The World Bank expects above 5% until 2027, emphasising that household consumption remains a core stabiliser even as fiscal policy tightens. The BSP has also indicated growth potential within the 5% to 6% band, and the government has adjusted its own target to the same range, implicitly acknowledging that 2025’s turbulence still leaves aftershocks.

What does this mean for business? It means 2026 will likely be “steady but uneven”. Companies tied to domestic demand may see more consistent tailwinds, while export-linked and capex-heavy sectors remain more sensitive to external shocks, sentiment, and financing conditions. In practical terms, the market is not rewarding bravado; it is rewarding execution discipline.

Inflation is supportive until it is not

Inflation dynamics matter because they shape borrowing costs, wage pressure, and consumer confidence. After unusually low prints in 2025 (averaged around 1.7% to 1.8%), inflation is expected to edge up modestly in 2026 to roughly around 2.3% to 3.2%, influenced by base effects and commodity pressures, while staying within the BSP’s 2% to 4% target range. That is generally constructive: inflation low enough to preserve purchasing power but not so low that it signals weak demand.

Still, inflation risk is rarely theoretical. Food prices can swing, energy markets can surprise, and weather disruptions are a recurring reality in a typhoon-prone country. The takeaway is simple: do not just “monitor inflation”. Build triggers and playbooks around it. If your margin is exposed to fuel, logistics, or imported inputs, you need predefined actions, not debates, when indicators move.

The external risk remains the X-factor

Even if the domestic base is improving, global uncertainties continue to cast a shadow. Prolonged trade barriers and tariff-related uncertainty can weigh on exports and business confidence, and fiscal tightening limits the government’s ability to cushion shocks. This is why 2026 strategies cannot be decks full of aspirations. It has to be operationalised: measurable, owned, and executable.

In other words, 2026 will reward the companies that run like an analyst would run a portfolio: protect downside, preserve liquidity, and fund options that can scale when conditions improve.

The 2026 financial analyst playbook: five moves that change outcomes

  1. Run structured, short, and serious quarterly risk reviews

Hold a quarterly two-hour “risk committee” using a simple dashboard. Track five indicators: CPI releases (PSA), PHP/USD movements, BSP policy decisions, key tariff/trade announcements relevant to your sector, and governance/corruption-related news that may affect sentiment or permits. Score each risk 1 to 5, assign an owner, and define triggers. For example, if inflation hits 3.2%, execute a pricing protocol within seven days (price resets, bundle changes, contract repricing, promo redesign, etc.).

  1. Diversify supply chains where it matters most.

Review your top 3 to 5 imported inputs by cost and operational criticality. Establish a strategic foothold with regional backup suppliers to cover a substantial segment (e.g., 20% to 30%) of mid-year requirements. For critical local items, consider shorter 3-to-6-month contracts to reset terms as conditions shift. Run one annual typhoon disruption drill to estimate lead times, rerouting, emergency procurement, and decision rights.

  1. Build liquidity like a defensive asset, not an afterthought

Target cash plus committed credit covering 4 to 6 months of core operating expenses. Secure revolving credit lines while conditions are favourable, and do not wait until the bank sees stress. Implement a weekly 13-week rolling cash forecast; the discipline matters more than the software. SMEs can explore SB Corp guarantees to improve access and pricing.

  1. Upskill for productivity gains that show up in margins.

Allocate a certain percentage of payroll for training linked to measurable KPIs. Prioritise AI-enabled operations, data analytics, and energy management basics. Aim to certify a growing segment of the workforce by year-end via TESDA-supported programs or scalable platforms. Track impact through pre/post measures: cycle time, error rates, conversion rates, and turnaround time.

  1. Upgrade budgeting into rolling forecasts with flexibility.

Move from annual “set-and-forget” budgets to rolling quarterly forecasts with ~10% reallocation flexibility. Hold 30-minute monthly pulse checks: what changed, what it means, and what actions follow this month. In uncertain environments, speed beats perfect models.

Execution is the advantage

The road through 2026 may still feel uneven, but it is far from unworkable. The Philippines retains strong underlying demand, a young and adaptable workforce, and meaningful upside in renewables and digital services. The companies that are expected to break out this year will not be the ones with the boldest narratives; they will be the ones with clear triggers, named owners, protected liquidity, and fast decisions.

Resilience in 2026 is not a slogan. It is a system. Build it now, and you will not just survive volatility. You’ll turn it into your edge.

Seb Serrano is a Director for the Advisory Services Practice Area at P&A Grant Thornton. One of the leading audit, tax, advisory, and outsourcing firms in the Philippines, P&A Grant Thornton is composed of 29 Partners and 1,500 staff members. We’d like to hear from you! Connect with us on LinkedIn and like us on Facebook: P&A Grant Thornton and email your comments to business.development@ph.gt.com. For more information, visit our website: www.grantthornton.com.ph.

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News

6 in 10 Filipinos pessimistic about 2026 – PAHAYAG

by Contributor
written by Contributor

MANILA – Against a backdrop of persistent corruption scandals, declining trust in top national leaders, and fragile business and investor confidence, a majority of Filipinos remain pessimistic about the country’s prospects heading into 2026.

Six in ten voters (58%) say they are pessimistic about the state of the country as the new year approaches. While this marks an improvement from 70% last quarter, it remains significantly higher than the 49% recorded a year ago—underscoring that pessimism, though easing, continues to dominate public sentiment.

Optimism has rebounded to 42%, up from 30% last quarter, but still below last year’s 51%. This improvement is largely driven by more favorable expectations for the national economy and household finances, which appear to be cushioning the negative effects of ongoing political and governance concerns.

Governance concerns outweigh economic worries

Despite improving economic expectations, Filipinos increasingly view the current state of the nation as weak and moving in the wrong direction, with both indicators now at their highest levels since tracking began. Only 24% describe the country’s condition as strong (down from 27% in Q3), while 49% consider it weak (up from 45%). Similarly, just 31% believe the country is headed in the right direction, down from 33% last quarter.

Notably, this pessimism is not primarily driven by economic anxiety. Looking ahead, 37% expect the national economy to improve in the next quarter, while an even higher 55% anticipate better household financial conditions—clear signs of short-term economic optimism.

The disconnect points instead to a deepening erosion of public trust, fueled by unresolved corruption controversies, weak accountability among top officials, and uncertainty over political leadership. These governance issues continue to undermine confidence despite improving economic signals.

Regional and sectoral divide in confidence

Pessimism is most pronounced in the Visayas and Mindanao, among the youth sector (ages 18–20), high-income earners, government workers, non-OFW households, and respondents with no formal education or a college background, reflecting stronger dissatisfaction with governance and national direction.

In contrast, South Luzon and Visayas register the highest optimism regarding economic and household prospects for the first quarter of 2026, highlighting a growing divide between economic expectations and confidence in national leadership.

PEOY-2025 is an independent, non-commissioned nationwide purposive sampling survey conducted from December 7 to 10, 2025, comprising 1,500 respondents who are registered Filipino voters, randomly selected from the market research panel of PureSpectrum, a US-based panel marketplace with global operations and a regional office in Singapore.

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Opinion

China wants to share a good life with all

by Contributor
written by Contributor

THERE’S a Chinese saying: “Neighbors yet worlds apart”. It describes how neighbors may be physically close, yet a lack of understanding creates a vast psychological distance. China and the Philippines are neighbors separated by the sea, with economic and trade ties dating back over a thousand years.

Yet, after more than a millennium, do we truly understand each other? Perhaps not sufficiently. Many foreigners who have visited China return with profound impressions. I therefore wish to take this opportunity to introduce China to the Filipino people, particularly its Five-Year Plans.

Five-Year Plans are not unique to China, but only China has consistently implemented them over the long term and achieved significant accomplishments. It can be said that the history of China’s Five-Year Plans mirrors the growth and development of the People’s Republic of China. China’s Five-Year Plans also provide valuable lessons for countries worldwide seeking sustained, stable economic and social development.

Shortly after the founding of the People’s Republic of China, the nation launched its first Five-Year Plan. The period from 2020 to 2025 marks the 14th Five-Year Plan. What has China accomplished during this period? We have reached new heights in terms of economic strength, scientific and technological capabilities, and composite national strength.

In 2024, China’s GDP exceeded 134 trillion yuan, with an average annual growth rate of 5.5%. Its contribution to global economic growth remained around 30%, making it the most stable and reliable engine of global economic development. New breakthroughs were achieved in scientific and technological self-reliance and self-strengthening with abundant innovations in cutting-edge fields such as artificial intelligence, quantum communication, and high-end chips. People’s livelihoods improved across the board, and with the world’s largest education system, social security system, and healthcare system established.

As the 14th Five-Year Plan draws to a close in 2025, China will soon embark on its next Five-Year Plan (2026-2030). What, then, will we pursue during the 15th Five-Year Plan period?

While numerous objectives exist, I will highlight three key priorities: high-quality development, high-level opening up, and a community with a shared future for humanity. These not only concern China’s development, but are also intrinsically linked to our collective future.

High-quality development means fostering a healthier Chinese economy. We will accelerate the comprehensive green transformation of economic and social development, expedite high-level self-reliance in science and technology, and provide the world with more high-quality products. High-level opening-up means safeguarding the multilateral trading system and promoting broader international economic flows. 

We should advance reform and development through greater openness and seek to share opportunities and achieve common development with the rest of the world.

Building a community with a shared future for humanity means advocating the spirit of “sharing the same boat,” embracing an open and inclusive mindset, and pursuing a vision of win-win cooperation. It means transcending conflict and confrontation with peaceful development, replacing absolute security with common security, abandoning zero-sum games in favor of mutual benefit and win-win outcomes, preventing clashes of civilizations through exchanges and mutual learning, and protecting our Earth home through green development.

China and the Philippines are so close geographically. Working together for development and sharing a better life should be the common aspiration of our peoples.

We are willing to join hands with the Philippines to uphold mutual respect, strengthen exchanges across all fields, and ensure that economic and trade cooperation continues to benefit our peoples, enhancing their sense of fulfillment and happiness, and jointly forge a new chapter of win-win cooperation.

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