MANILA: The Philippines is looking to issue sovereign bonds in the first quarter of the year to help finance this year’s budget, its finance minister said on Monday, signaling the government is stepping up efforts to upgrade the nation’s infrastructure.
Finance Secretary Carlos Dominguez told a news conference the bond offering could happen between January and February, but he didn’t provide any information on the amount the government planned to raise.
The government’s borrowing plan this year also includes a Samurai bond issue, which Dominguez said may take place toward the latter part of 2018.
National Treasurer Rosalia de Leon said in September the government was looking to raise $1 billion (SR3.75 billion) from the sale of sovereign global bonds to help fund the increase in this year’s spending plan.
Philippine President Rodrigo Duterte signed into law the 3.8 trillion pesos (SR285.69 billion) spending plan for 2018 in December. This year’s budget target tops the previous year’s spending by more than 12 percent as the government forges ahead with plans to expand and modernize its infrastructure.
Dominguez said the government would submit to Congress this month the second of the five tax reform packages, which the president needs to fulfill his promise to build much-needed infrastructure to attract investments and lift economic growth.
Duterte has promised to usher in a “golden age of infrastructure” by raising annual spending on it to 7 percent of gross domestic product from less than 3 percent before he came to power more than 18 months ago.
The first of five tax reform packages, aimed at boosting state coffers and making the tax system simpler and fairer, was signed into law in December.
The new law covers an array of tax changes, including expanding the value added tax base, lowering personal income taxes and raising those on petroleum products and automobiles. It is expected to raise 92 billion pesos in its first year of implementation.
Dominguez said he expects the inflationary impact of the tax reform measure to be minimal at 0.7 percent. The government has a 2-4 percent inflation target this year.
Philippines readies global bonds sale to fund infrastructure projects
Philippines readies global bonds sale to fund infrastructure projects
Gulf-EU value chain integration signals shift toward long-term economic partnership: GCC secretary general
RIYADH: Value chains between the Gulf and Europe are poised to become deeper and more resilient as economic ties shift beyond traditional trade toward long-term industrial and investment integration, according to the secretary general of the Gulf Cooperation Council.
Speaking on the sidelines of the World Governments Summit 2026 in Dubai, Jasem Al-Budaiwi said Gulf-European economic relations are shifting from simple commodity trade toward the joint development of sustainable value chains, reflecting a more strategic and lasting partnership.
His remarks were made during a dialogue session titled “The next investment and trade race,” held with Luigi Di Maio, the EU’s special representative for external affairs.
Al-Budaiwi said relations between the GCC and the EU are among the bloc’s most established partnerships, built on decades of institutional collaboration that began with the signing of the 1988 cooperation agreement.
He noted that the deal laid a solid foundation for political and economic dialogue and opened broad avenues for collaboration in trade, investment, and energy, as well as development and education.
The secretary general added that the partnership has undergone a qualitative shift in recent years, particularly following the adoption of the joint action program for the 2022–2027 period and the convening of the Gulf–European summit in Brussels.
Subsequent ministerial meetings, he said, have focused on implementing agreed outcomes, enhancing trade and investment cooperation, improving market access, and supporting supply chains and sustainable development.
According to Al-Budaiwi, merchandise trade between the two sides has reached around $197 billion, positioning the EU as one of the GCC’s most important trading partners.
He also pointed to the continued growth of European foreign direct investment into Gulf countries, which he said reflects the depth of economic interdependence and rising confidence in the Gulf business environment.
Looking ahead, Al-Budaiwi emphasized that the economic transformation across GCC states, driven by ambitious national visions, is creating broad opportunities for expanded cooperation with Europe.
He highlighted clean energy, green hydrogen, and digital transformation, as well as artificial intelligence, smart infrastructure, and cybersecurity, as priority areas for future partnership.
He added that the success of Gulf-European cooperation should not be measured solely by trade volumes or investment flows, but by its ability to evolve into an integrated model based on trust, risk-sharing, and the joint creation of economic value, contributing to stability and growth in the global economy.
GCC–EU plans to build shared value chains look well-timed as trade policy volatility rises.
In recent weeks, Washington’s renewed push over Greenland has been tied to tariff threats against European countries, prompting the EU to keep a €93 billion ($109.7 billion) retaliation package on standby.
At the same time, tighter US sanctions on Iran are increasing compliance risks for energy and shipping-related finance. Meanwhile, the World Trade Organization and UNCTAD warn that higher tariffs and ongoing uncertainty could weaken trade and investment across both regions in 2026.
