I finally found the best way to withdraw money from my Paypal account without losing much on currency exchange.
Unfortunately, Paypal doesn’t have a facility yet to transfer dollar to a local dollar account. I previously tried doing so via BPI Dollar account but the transaction failed.
Update May 2019: It seems that we can no longer transfer US Dollars to GCash (Philippine Peso). When I tried to cash in money using Paypal, the US Dollar currency is no longer showing in the available balance screen. We have to convert USD to Philippine Peso first in Paypal before we can transfer to GCash.