Corruption shakes growth momentum, stability

As a massive corruption scandal involving “ghost” flood control projects continues to unfold in the Philippines, big business lobby Makati Business Club (MBC), the Washington-based multilateral lender World Bank (WB), and think tank Capital Economics have raised concerns over how graft and poor governance could derail long-term growth, investor confidence, and social stability.

- DEXTER BARRO II

DIGITAL PUSH EARNS BPI SME BANKING HONOR -- The Bank of the Philippine Islands (BPI) has been recognized as the Best Small Business Banking Service in the Philippines at The Asian Banker Philippines Excellence in Retail Finance and Financial Technology Awards 2025. In photo (left to right): Christian Kapfer, Research Director of The Asian Banker; Maricris San Diego, Marketing, SPPI, Products, and Campaigns Division Head of BPI Business Banking; Ma. Genalyn Paulino, Small Business Credit Division Head of BPI Business Banking; Dominique Ocliasa, Head of BPI Business Banking; Cara Funk, Marketing Head of BPI Business Banking; and Urs Bolt, International Resource Director of The Asian Banker.

MBC—composed of the country’s top executives—urged the government to reject populist calls for a mass resignation of officials and instead focus on institutional reforms that will “make our democracy work” and ensure accountability.

“Simply changing the people in power will not achieve the lasting improvement in the country’s governance,” MBC said in a statement on Monday night, Oct. 6, following Senator Alan Peter Cayetano’s call for snap elections over the weekend.

The business group cited the ongoing investigation into corruption in flood control projects, saying the public’s demand for transparency must be met with concrete, systemic responses.