Philippines lags in Trade Barrier Index

The Philippines tumbled 35 places to 116th out of 122 countries in the 2025 edition of the International Trade Barrier Index (TBI), published biennially by nonprofit Tholos Foundation.

The country’s TBI score worsened to 5.25 in 2025 from 5.15 in 2023 on a 10-point scale where lower is better, lagging behind the global average of 4.22 and the East Asia & Pacific average of 4.20.

The index evaluates trade openness based on tariffs, nontariff barriers, services restrictions, and facilitation.

Trade Barrier Index

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Source: Business World

Philippines counting on 14.2-GW new power supply by 2030

Over 14,200 megawatts (MW) of new capacity are set to come online by 2030 to strengthen the country’s power supply, according to the Department of Energy.

Latest DOE data showed that renewable energy accounted for the bulk of committed projects between 2025 and 2030, totaling 11,625.32 MW.

Some 2,620.74 MW of new capacity, meanwhile, will come from conventional sources like coal, oil and natural gas.

Committed projects refer to those that have secured firm financial closure, are already under construction or have been awarded through the government’s green energy auction rounds.

For renewables, solar projects dominated the list with an aggregate capacity of 8,431.19 MW, followed by wind (2,233.24 MW), hydropower (836.38 MW), geothermal (74.22 MW) and biomass (50.28 MW).

These projects are aligned with the Marcos administration’s target of expanding the share of renewables in the energy pie to 35 percent by 2030 from the current 22 percent.

Among conventional sources, coal projects remained at the forefront, with a total capacity of 1,570 MW. Natural gas and oil-based projects are poised to contribute 880 MW and 170.74 MW of new capacity, respectively.

The Philippines is still heavily dependent on coal for power generation despite the government’s moratorium on new Greenfield facilities.

In fact, coal accounted for 62 percent of the country’s power generation mix last year, according to a 2024 report by the International Energy Agency.

While there is a strong push to deploy more renewables, the IEA noted that coal’s share in the energy mix is likely to only marginally decrease to 60 percent by 2027.

Aside from power generation assets, the government is also expecting reinforcements from committed battery energy storage system (BESS) projects totaling 594 MW.

A BESS facility stores electricity from power plants or the grid for various applications such as grid stability, energy efficiency and renewable power integration.

The DOE is counting on these projects to augment the country’s power supply amid rising energy demand.

Under the Philippine energy scenario, peak demand is expected to grow by around 5.3 percent annually until 2028.

Source: Philstar

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