PDIC Adjusts Maximum Deposit Insurance Coverage to PHP1 Million
On 27 February 2025, the Philippine Deposit Insurance Corporation (“PDIC“) released Memorandum No. 2025–01 (“Memorandum“), announcing an increase in the Maximum Deposit Insurance Coverage (“MDIC“) from PPH500,000 (approx. US$8600) to PHP1 million (approx. US$17,240) per depositor. The upward adjustment aims to provide greater protection and assurance to the depositing public. The adjustment is expected to boost the public’s confidence in the Philippine banking system and contribute to the country’s financial stability.
PDIC also clarified, through a press release dated 28 February 2025, that the assessment rate for banks will remain unchanged despite the increased coverage and that PDIC’s Deposit Insurance Fund remains sufficient to meet potential insurance challenges that may emerge.
Philippines and Cambodia Sign Agreement to Enhance Collaboration in Competition Law Enforcement
The Philippine Competition Commission (“PCC“) and the Cambodia Competition Commission (“CCC“) signed a memorandum of understanding (“MOU“) to enhance collaboration in competition law enforcement to foster fair and competitive markets in both countries.
The MOU establishes a framework for closer partnership between PCC and CCC in key areas such as notification of potential anti-competitive conduct, enforcement activity coordination, and technical collaboration through personnel exchanges and joint training. In his speech, Philippine President Ferdinand Marcos Jr. stressed the importance of exchanges of best practices in competition law enforcement for bilateral investment and economic activity.
The MOU, signed by PCC Chairperson Michael Aguinaldo and CCC Chairperson Cham Nimul, was presented before President Marcos and Cambodian Prime Minister Hun Manet on 11 February 2025, during Prime Minister Hun Manet’s first official visit to the Philippines.
The MOU is the sixth international bilateral agreement concluded by the Philippines and other countries, following previous MOUs with China (2019), Hong Kong (2020), Singapore (2021), Australia (2024), and Thailand (2025).
Philippines and Thailand Ink MOU on Joint Competition Law Enforcement
The Philippine Competition Commission (“PCC“) and the Trade Competition Commission of Thailand (“TCCT“) signed a memorandum of understanding (“MOU“) to bolster cross-border collaboration in competition law enforcement.
The MOU aims to foster fair and competitive markets in both countries by establishing a framework for partnership in areas including information sharing, notification of enforcement activities, coordination of investigations of mutual interest, and technical collaboration through initiatives such as personnel exchanges and joint training.
The MOU was signed by PCC Chairperson Michael Aguinaldo and TCCT Chairperson Maitree Sutapakul on 4 February 2025 in the Philippines.
Philippine Natural Gas Industry Development Act Takes Effect
On 8 January 2025, the Philippine Natural Gas Industry Development Act (“Act“) was signed into law. The Act seeks to promote natural gas as a safe, efficient, and cost-effective source of energy and an indispensable contributor to energy security by establishing the Philippine Downstream Natural Gas Industry (“PDNGI“). It also seeks to develop natural gas as reliable fuel for power plants capable of addressing the peaking, mid-merit, and baseload demand in the Philippines to help achieve energy security, while progressively transitioning to renewable energy sources. The Act also outlines the powers and responsibilities of government agencies involved in the implementation of the policy on natural gas. In addition, it sets out the rules on the operation of downstream natural gas facilities, and prescribes the governing standards on product quality, facility, and safety practice.
On 5 April 2025, the Department of Energy (“DOE“) also released the implementing rules and regulations (“IRR“) of the Act. The IRR provide a comprehensive framework for the organisation and regulation of the downstream natural gas industry and set out the principles governing the operation of downstream facilities. It also prescribes the applicable standards on facility operations, product quality, and safety procedures. A notable provision of the IRR is the potential grant of fiscal incentives to all PNDGI facilities, subject to their inclusion in the Strategic Investment Priority Plan and compliance with the relevant provisions of the National Internal Revenue Code. Under the Act and its IRR, administrative fines and penalties may be imposed on permit holders or participants for any violation of the Act, and criminal liability may attach pursuant to existing penal laws.
The Act and its IRR are regarded as landmark measures in advancing the development of the natural gas industry in the Philippines.
DOLE Issues New Rules on Employment of Foreign Nationals in the Philippines
On 21 January 2025, the Department of Labor and Employment (“DOLE“) issued Department Order No. 248-2025, also known as the New Rules and Regulations on the Employment of Foreign Nationals in the Philippines (“Rules“).
Among the significant updates is the introduction of the Economic Needs Test, which requires the relevant DOLE Regional Office to evaluate and consider the possible economic implications of allowing the employment of foreign nationals in specific sectors, professions, occupations or industries. Particularly, the following shall be considered:
- any shortage or surplus of Filipino workers in the sector, industry, profession, occupation or industry in which the foreign national is intended to be employed based on official statistics or relevant surveys;
- unavailability in the local labour market of the specialised skills, expertise or knowledge required by or are inherent to the position to which the foreign national is intended to be employed, and whether or not these can be met within a short period of time by training local workers; and
- the employment of the foreign national is deemed essential for the development, competitiveness or technological advancement of the specific sector, profession, occupation or industry and serves the national interest.
Subject to exceptions, the Rules also modified the Labour Market Test which imposes additional requirements for securing an Alien Employment Permit (“AEP“). This includes prior publication of the vacancy in: (i) a newspaper of general circulation, (ii) the PhilJobNet, and (iii) the Public Employment Service Office or Job Placement Office. Prior to the effectivity of the Rules, publication was only required in a newspaper of general circulation and the DOLE website.
Under the Rules, AEP applications may now be initiated even if the foreign national is still outside the Philippines. However, the AEP will only be released once the individual has entered the country with the appropriate pre-arranged employment or working visa, which must be presented to the DOLE Regional Office.
BSP Launches Financial Cyber Resilience Governance Council
On 11 February 2025, the Bangko Sentral ng Pilipinas (“BSP“) launched the Financial Cyber Resilience Governance Council (“Council“) which aims to foster a safe, secure, and resilient financial system through the promotion of strong cybersecurity practices, governance, and collaboration across the country’s financial sectors.
The Council will oversee the implementation of the 2024-2029 Financial Services Cyber Resilience Plan (“Resilience Plan“) which outlines the goals and strategies to safeguard the integrity and security of the country’s financial system. It will convene quarterly to assess the progress on the Resilience Plan, review relevant cyber threat reports, and recommend policy adjustments to further strengthen the financial system’s cybersecurity framework.
Monetary Board Member Jose Querubin will serve as the advisor to the Council, with BSP Deputy Governor Chuchi Fonacier and Bankers Association of the Philippines Cyber Committee Head Sandeep Uppal appointed as chairperson and vice chairperson, respectively. The Council’s membership also includes representatives from various financial organisations such as the Chamber of Thrift Banks, Rural Bankers Association of the Philippines, Philippine E-Money Association, BancNet, and the Philippine Clearing House Corporation. In addition, senior BSP officials – including those from the Policy and Specialised Supervision Sub-Sector, the Technology and Digital Innovation Office, and the Technology Risk and Innovation Supervision Department – will also play active roles in the Council. Through this multi-sectoral approach, the BSP seeks to build a more robust and responsive cybersecurity framework for the country’s financial services industry.
SEC Issues User Guide for Sustainable Finance Taxonomy Guidelines
On 15 January 2025, the Securities and Exchange Commission (“SEC“) issued a User Guide for the Philippine Sustainable Finance Taxonomy Guidelines (“SFTG“) (“User Guide“), pursuant to SEC Memorandum Circular No. 05-2024.
The User Guide aims to assist stakeholders in determining whether (i) an economic activity aligns with SFTG’s environmental objectives (i.e. climate change mitigation and adaptation); (ii) meets the essential criteria of Do No Significant Harm (“DNSH“) and Remedial Measures to Transition (“RMT“), and (iii) the entity executing the activity fulfils the Minimum Social Safeguards (“MSS“).
The SFTG is a qualitative, principle-based framework that classifies economic activities through a traffic light system. Under this system, activities are labelled as green when they substantially contribute to an environmental objective and satisfy both the DNSH and MSS criteria. Activities are considered amber when they contribute to an objective but fall short of DNSH, although RMT is in place, and red when they do not serve any environmental objective under the framework. That said, an activity classified as red does not mean it is unsustainable, and it may in fact still be eligible for “unlabelled” financing.
The SFTG also outlines priority sectors for climate change mitigation and adaptation, providing further clarity on where stakeholders should focus their sustainable finance efforts. A simplified assessment process is available for micro, small, and medium enterprises, which evaluates the activity’s alignment with a relevant “use of proceeds standard”, and applies the same traffic light classification methodology. To aid users in assessing whether their activities fall under the SFTG, SEC included case studies in the User Guide as illustrative examples for reference.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice
