Why trust is the new currency in the Philippines

Across Manila, Jakarta and Kathmandu, one force is reshaping markets: public outrage, not just at corrupt politicians, but also at ‘nepo baby’ influencers, entrenched institutions and once-untouchable brands.

In today’s hyperconnected world, trust isn’t given, it’s earned. Lose it, and you lose customers.

Scandals involving misused funds, political favoritism and influencer complicity aren’t just headlines; they’re changing how Filipinos and Southeast Asians choose who and what to support.

Trust is no longer a marketing value.

In the Philippines, it has become the operating currency of business.

Consumers are discerning, watching your values, partners, how you treat employees and how you respond in crises.

In a culture where bayanihan (community support), pakikisama (social harmony) and utang na loob (debt of gratitude) run deep, brands that break these social codes don’t just lose market share, they may never recover.

But building trust is more complex than a checklist of values. 

It demands a shift in power dynamics, long-term commitment beyond headlines and ethical courage rooted in culture, not hidden behind it.

Political: Silence is complicity

Political volatility is the new normal. Billions in flood control funds were misused, stirring public fury.

Celebrities tied to political clans caught in scandals are reputation risks brands cannot ignore. Damage isn’t always visible, but savvy companies know these links quietly erode trust.

Brands must ask: Who do we give power to? Partnerships and public stances now shape your brand’s trustworthiness. Silence in moments of injustice is complicity, an active decision to lose trust.

It’s not enough to avoid controversy. Brands must actively choose where to stand and understand that inaction speaks as loudly as action.

In a country where political and social networks are tightly woven, failing to address uncomfortable truths risks long-term damage to brand credibility.

Economic: Resilience meets impatience

Domestic demand and infrastructure investments remain strong, but cracks are showing.

Power outages, flooding, inconsistent internet and poor roads disrupt businesses and frustrate consumers. Customers want brands to own up fast when things go wrong. Silence kills trust.

Apologies after the fact won’t cut it anymore. Crisis sensitivity and operational empathy are competitive edges. But beyond reaction, brands must build trust into the operating system, ensuring resilience is baked into every process.

Consider how local communities often bear the brunt of infrastructure failures and climate risks.

Brands that invest in community resilience programs or collaborate with local governments are not only doing good, they’re signaling shared responsibility, which builds deep trust.

Social: Gen Z calls the shots

The median Filipino is 26 years old.

This Gen Z cohort, raised amid political drama, climate disasters and social activism, demands honesty, representation and real impact.

They seek accountability, consistency and courage.

Yet, in an age of outrage and fleeting attention, brands must build trust that lasts longer than headlines. Outrage is loud but temporary; long-term trust requires institutionalized integrity, not just reactive messaging.

This means embedding accountability into governance, investing in transparent communication channels and authentically engaging with communities, not just during crises, but daily.

Technological: Build trust, not tricks

Artificial intelligence, automation, and personalization grow, but so does digital distrust. Fake reviews, deepfakes, and misinformation make consumers skeptical by default.

Use technology to enhance real experiences, not just cut costs. Invest in privacy, ethical data use and digital inclusion. Transparency around AI and clear privacy policies build trust faster than flashy tech.

Philippine brands must avoid the temptation to use technology as a gimmick. Instead, technology should be a tool for inclusion and empowerment, especially in underserved areas where digital trust is fragile.

Legal: Compliance is just the baseline

New rules on digital taxation and data protection pile up. Following the law is expected, but not enough.

Trust grows in grey areas, where brands choose openness, care and accountability over technicality. Brands must move beyond compliance toward genuine empathy and proactive transparency.

For example, brands that openly share how they safeguard customer data or involve consumers in feedback loops build far stronger trust than those that only meet minimum legal standards.

Environmental: Walk the talk

The Philippines faces climate disasters head-on. Vague sustainability programs won’t cut it.

Consumers want measurable action: renewable energy, clean water, disaster preparedness. Environmental trust isn’t a nice-to-have, it’s survival.

Brands that lead on environment aren’t just ticking boxes, they’re demonstrating shared risk and shared responsibility.

Because climate change hits the Philippines hard and often, brands that overlook their environmental responsibility risk losing the trust and support they need to stay in business.

Cultural: The heartbeat of trust

Various forces filter through deeply ingrained cultural lenses.

Pakikisama demands social harmony but can silence conflict. Utang na loob builds loyalty but can blur professional lines. Hiya fosters respect but can delay urgent transparency.

Cultural literacy requires brands to navigate these values with courage, not hide behind them. Ethical leadership rooted in local culture is key to unlocking emotional loyalty.

In a society where relationships matter more than contracts, brands must embody cultural values authentically while challenging the norms that allow opacity or excuses.

The Trust Economy: Principles that power the flywheel

The trust economy is a market where people buy based on trust, not just need. Value shifts from reach and price to reputation, accountability and cultural fit.

Here are seven core principles, interconnected like a flywheel, each fueling the next:

Humility–Invitational Mindset: Genuine openness to learn and grow, without getting defensive when challenged. But it’s not just about listening politely or saying “we’re humble.”

It goes deeper: it means actually sharing power and influence with the communities or people you serve, inviting their voices into decisions and respecting their role.

Cultural Literacy–Respectful Connection: Deep understanding of audience context, values, and language. But also the courage to challenge cultural norms that may hinder transparency or accountability.

Empathy–Emotional Alignment: Responding to real needs with compassion, not assumptions. Requires continuous effort and presence, not one-off gestures.

Transparency–Meaningful Honesty: Open communication that reduces fear, confusion and speculation. It must be consistent and proactive, not reactive PR.

Authenticity–Grounded Identity: Consistency across time and touchpoints. Brands must resist becoming mere messaging machines and instead embody true values daily.

Consistency–Reliability Over Time: Actions must repeatedly match words. Trust is built in the invisible, everyday moments, not just big announcements.

Accountability–Worth Believing: Owning mistakes, upholding integrity and being investable long term. Trust requires brands to be vulnerable and willing to change.

These principles work as an interdependent flywheel, each one powers the next, creating self-sustaining momentum. Humility is not just the start, it’s the ongoing fuel.

Trust is not a strategy. It is the operating system

In the Philippines, where betrayal cuts deep and loyalty lasts decades, trust is not a metric. It is how you run your business.

Brands that treat trust as a side effect chase recovery. Brands that embed trust as core infrastructure lead. This means building systems and cultures that live these values daily, with measurable accountability.

Because in a trust economy, every signal matters. Every silence is a statement. Every decision a deposit or withdrawal.

The brands that win in the Philippines won’t be the loudest or flashiest. They will be the clearest, most consistent and most human.

Trust is the future, not just a value, but the foundation. The question is: are we ready to build it boldly, deeply and for the long haul?

Source: Inquirer

The danger of OFWs starting businesses

Overseas Filipino workers (OFWs) are rightfully called modern-day heroes. Their sacrifices have sustained countless families and propped up the Philippine economy through billions in remittances.

However, behind the success stories, many OFWs face heartbreaking realities—especially when it comes to starting businesses.

Entrepreneurship is often seen as the ultimate dream for OFWs, a way to finally come home for good and enjoy financial independence. While the intention is noble, the risk is real.

In fact, the danger is highest when OFWs attempt to start businesses while still working abroad.

Here are the reasons why:

1. Funding without leading

One of the biggest mistakes OFWs make is becoming “absentee entrepreneurs.” You provide the capital, but someone else runs the business.

In many cases, this person is a family member or friend. While there are exceptions, the sad reality is that trust doesn’t always translate to competence—or integrity.

You’re working 12-hour shifts abroad, sending your hard-earned money back home, and hoping your sari-sari store, tricycle business or mini grocery will grow.

But you’re not there to monitor the daily operations. You’re not seeing where the money goes. You don’t know if the earnings are being reinvested or spent.

I’ve heard countless stories where the OFW is left with nothing: the business folds, relationships are strained and years of sacrifice are lost.

Entrepreneurship requires hands-on leadership. Capital alone does not guarantee success.

2. Lack of business know-how

Many OFWs dive into business without the proper training or experience. They might be great at their jobs overseas—as nurses, engineers or technicians—but business is a different world. It demands knowledge in operations, marketing, accounting and more.

Starting a business just because a relative or friend suggests it—or because it worked for someone else—is not a wise strategy. Every business involves risk, and without education and preparation, that risk multiplies.

Before putting money into a venture, OFWs should invest first in financial literacy and entrepreneurial training.

Learn before you launch.

3. Over-romanticizing the ‘come-home-for-good’ dream

It’s natural for OFWs to dream of coming home for good.

But it must be backed by a solid plan, not just emotion. Many OFWs are so eager to return that they rush into business without counting the cost.

A business isn’t a magic exit from working abroad. In fact, it can create more stress, especially when it starts to fail. Instead of being a pathway to freedom, it becomes a trap of debt and regret.

The transition from employment to entrepreneurship should be gradual and well-planned. Don’t use your business as a ticket home unless it has already proven to be stable, profitable and sustainable.

4. Pressure from family and community

Let’s be honest. Many OFWs are pressured to support not just their immediate family but their extended relatives.

Often, the idea of starting a business is influenced by well-meaning—but sometimes entitled—family members who promise to “take care of it.”

This dynamic can lead to emotional manipulation:

“Kaya mo na ‘yan; ikaw na ang nasa abroad!” (You can take care of it; you’re the one based overseas.)

“Para naman makauwi ka na!” (It’s so that you can come home)

And so, out of guilt or desire to please, OFWs pour money into businesses they did not study or plan for.

Entrepreneurship requires objectivity. It cannot be driven by pressure or utang na loob (debt of gratitude).

Always remember: your hard-earned money deserves wise stewardship.

5. Starting with the wrong mindset

Another danger is the belief that entrepreneurship is the answer to all financial problems. It’s not. Most small businesses in the Philippines don’t last beyond three years. Success in business is not guaranteed.

Some OFWs pour everything they have—retirement money, savings, even borrowed funds—into one business venture. It’s an all-or-nothing move.

When it doesn’t work out, the result is devastating: no savings, no income and in some cases, no way to go back abroad.

If you are going to start a business, do it with the mindset of a steward, not a gambler.

Start small. Test the waters. Grow gradually.

Focus first on building a strong financial foundation. This means having an emergency fund, insurance, zero debt and savings set aside for capital, not borrowed money.

At the same time, educate yourself through business courses or mentors. Start small while abroad, and wait until you’re home or have a trusted partner before going all in.

I believe many OFWs can become great entrepreneurs. But it must be done wisely, not emotionally. Don’t let your years of sacrifice go to waste because of poor planning and misplaced trust.

Remember: A business can be a blessing—but only if built with vision, discipline and stewardship.

Source: Inquirer

Philippines falls in global startup index for 4th year in a row

The Philippines dropped four spots in the 2025 Global Startup Ecosystem Index amid persistent gaps in infrastructure and regulations, according to global research firm StartupBlink.

In this year’s index, the Philippines slipped to 64th place out of 100 countries with a score of 2.237.

This was the fourth straight year of decline for the Philippines, which ranked 52nd in 2021, 57th in 2022, 59th in 2023 and 60th in 2024.

“The ecosystem growth of the Philippines is around 0.56% this year, and it’s being overtaken even by locations that are also decreasing in the rankings,” StartupBlink Head of Data & Consulting Ghers Fisman said.

Funding by Year

The Philippines’ annual ecosystem growth rate was the lowest in Southeast Asia.

To increase the Philippines’ score, Mr. Fisman said the process of establishing a startup at the business level should be easier. He also noted the importance of faster and wider internet access for Philippine entrepreneurs.

The Global Startup Ecosystem Index evaluates startup ecosystems across 100 countries and 1,000 cities, using scores that assess the quantity and quality of startups and their existing business environment.

“The Philippines is making progress toward becoming a formidable startup ecosystem in the Asia-Pacific region,” StartupBlink said in the report.

The Philippines received total funding of $273.6 million (around P15.22 billion) last year, according to the report.

“The Philippines’ startup ecosystem is anchored by robust sectors such as fintech (financial technology), e-commerce, healthtech, edtech, and software-as-a-service. This diversification is propelled by a large digital consumer base and increasing regional demand,” it said.

StartupBlink noted the Philippines’ attractiveness to foreign entrepreneurs and digital nomads “should allow for successful ecosystem growth — provided more of the local population embraces entrepreneurship.”

The Philippines has six cities in the global top 1,000, led by Manila.

Manila ranked 112th globally, dropping 11 spots from the previous year. It also dropped to 6th place in Southeast Asia rankings and was the only city to see a decline.

“The Philippines’ startup scene remains centralized in Manila, whose ecosystem is twelve times larger than Cebu City’s. This gap has more than doubled since 2020,” StartupBlink said.

However, Manila had the lowest ecosystem annual growth rate among cities in the Philippines at 2.6%.

Cebu City fell 10 spots globally to rank 469th, with an annual growth rate of 9%.

Davao City rose 163 spots to 580th spot globally, as its startup ecosystem grew by 97.7% last year.

Cagayan de Oro and Naga climbed the global rankings at 693rd and 767th, respectively.

New entrants to the global rankings include Iloilo City (744th), Cauayan City, Isabela (1,040th), and Solana City in Cagayan (1,170th).

“The Philippines stands as Southeast Asia’s fastest-growing digital economy, reflecting a dynamic consumer market ripe for innovative startups,” StartupBlink  said.

However, the Philippines faces several challenges that are hampering its development as a mature startup ecosystem.

“The lack of infrastructure is a limiting factor to the country’s economic growth, and entrepreneurs struggle with slow regulatory support for their startups,” it added.

John Paolo R. Rivera, senior research fellow at the Philippine Institute for Development Studies, said the country’s continued decline in the global startup rankings reflect structural gaps in the ecosystem.

“Improving our rank will depend not on isolated programs but on building a dynamic innovation ecosystem with strong interlinkages across the government, academe, industry, and startup founders themselves,” he said.

Key gaps in the local startup scene include poor early-stage funding support, uneven regional startup development, regulatory bottlenecks, and a “brain drain” of digital and entrepreneurial talent, Mr. Rivera said.

To address this, the Philippine government must adequately fund and fully implement the Philippine Startup Development Program, reduce bureaucratic red tape, and harmonize startup registrations and incentives, he added.

Venture capitalists and the private sector should also expand early-stage funding, mentorship, and link Filipino startups to global markets. Academic institutions can support student-founded ventures through incubation, intellectual property protection, and seed grants, Mr. Rivera said.

Source: Business World