BSP sees ‘a lot of policy space’ amid cooling inflation
By Chloe Mari A. Hufana, Reporter
APRIL INFLATION that’s likely to go below 2% gives the Philippine central bank “a lot of policy space,” while first-quarter growth that could be near or below the government’s 6-8% target would be an “important factor” in the Monetary Board’s policy meeting next month, according to its governor.
“I think it would be a good number,” Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. told reporters at the presidential palace on Monday, referring to last month’s inflation. “It gives us a lot of policy space. It makes our life easier.”
Inflation likely settled at 1.3% to 2.1% last month, according to BSP estimates released last week, which gives it leeway to cut benchmark interest rates further.
A BusinessWorld poll of 14 analysts last week yielded a median estimate of 1.8% for the consumer price index (CPI) in April, same as the March print.
The Philippine Statistics Authority is set to release the April inflation data on Tuesday (May 6), and preliminary first-quarter GDP data on Thursday (May 8).
Gross domestic product (GDP) growth that could be below the full-year goal of 6-8% also puts pressure on the BSP to ease monetary policy and stimulate growth.
“Growth will be an important factor [when] we decide in June,” Mr. Remolona said.
The BSP’s next policy meeting is on June 19.
The Monetary Board in April resumed its easing cycle with a 25-basis-point (bp) rate cut, bringing the key rate to 5.75%. It lowered rates by a total of 75 bps in 2024.
Philippine GDP likely expanded by 5.8% in the first quarter, according to a median forecast of 15 economists and analysts polled by BusinessWorld, picking up from the revised 5.3% in the fourth quarter of 2024.
However, it would be a tad slower than the 5.9% growth recorded in the first quarter of 2024.
“Low inflation may be a sign of better supply control, but can also reflect slowing demand, of which the latter can negatively impact growth. Rate cuts can help with driving demand higher as it makes borrowing costs cheaper, allowing credit growth,” Reinielle Matt M. Erece, an economist at Oikonomia Research and Advisory, Inc., said in a Viber message.
Mr. Erece said he understands why the BSP is “hesitant,” as heightened global uncertainty can affect inflation.
“Right now, the Fed is hawkish on policy as they weigh in on the impacts of tariffs. This may be the time for the BSP to perhaps deviate from the Fed’s moves and decide policy based on what the country needs.”
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said inflation likely eased to 1.6% year on year in April. He expects inflation to average 2.2% for the full year, well within the BSP’s 2%-4% target range.
With subdued inflation and slowing economic growth, he said the BSP is expected to continue cutting policy rates to support growth.
“Relatively benign inflation at 2% levels is already possible for most of 2025, well within and even at the lower end of the BSP’s inflation target of 2%-4%, thereby could justify/support future local policy rate cut/s that would match future Fed rate cuts in 2025,” he noted.
Filomeno S. Sta. Ana III, cofounder and coordinator of Action for Economic Reforms, said Mr. Remolona’s statement points to the further easing of monetary policy.
“Inflation is no longer a binding constraint,” he said in a Viber chat. “What should worry us is fiscal policy that has encouraged unproductive, inefficient and corruption-prone government spending, made worse by government’s rolling back of tax reforms.”
Mr. Remolona earlier signaled further rate reductions this year as the benchmark is still “slightly restrictive.” Rate cuts will likely be delivered in “baby steps” or in 25-bp increments, he said.
PHL to continue tariff talks with US
By Justine Irish D. Tabile and Chloe Mari A. Hufana, Reporters
THE PHILIPPINE government is optimistic that a deal on tariffs can be reached with the US, as it is set to continue negotiations for a lower tariff rate.
“The negotiation is a process. Not a one-time meeting. We believe the meeting went very well and our points were well received,” Trade Secretary Ma. Cristina A. Roque said in a statement on Monday.
Ms. Roque, Special Assistant to the President for Investment and Economic Affairs Frederick D. Go and Philippine Ambassador to the US Jose Manuel D. Romualdez met with the US Trade Representative (USTR) Jamieson Greer in Washington on May 2.
Before the trip, the Trade secretary said that the aim is to bring back the tariffs to at least the pre-“Liberation Day” level.
Last month, US President Donald J. Trump announced higher reciprocal tariffs on most of the country’s trading partners, with Philippine goods facing the second-lowest rate in Southeast Asia at 17%.
However, the reciprocal tariffs have been paused for 90 days until July. A baseline 10% tariff remains in place.
At a Palace briefing, Mr. Go said there will be more meetings with the USTR, although the Trade Undersecretary Allan B. Gepty would lead the talks.
He did not elaborate on a timeline.
Mr. Go said the meeting with the USTR focused on the local semiconductor and electronics industries since these are the top exports to the US.
Discussions also centered on the coconut, garment, furniture, food processing, and automotive industries, he added.
“The coconut industry is very important to us because it is our number one agricultural export to America,” he said in Filipino. “We brought up all the concerns and issues of our stakeholders, and as I said earlier, I believe it was very well received.”
In 2024, the US was the country’s top export market, receiving $12.12 billion worth of Philippine goods. The US was the Philippines’ fifth-largest source of imports accounting for $8.17 billion.
The Philippines’ top exports to the US are semiconductors, electronic integrated circuits, and insulated wire and other insulated electric conductors.
The country’s top imports from the US are soya beans, electronic integrated circuits, and wheat and meslin.
When asked if the USTR had committed to lowering the 17% reciprocal tariff imposed by Mr. Trump, Mr. Go said, “Let’s allow the process to take place.”
“I ask for your patience; let’s just wait for the outcome,” he added.
He refused to divulge if the US promised anything during the dialogues due to confidentiality agreements but noted it will take several negotiations to reach a favorable resolution.
The Foreign Trade Office of the DTI will now handle the negotiations with their American counterparts, he noted.
“We have to let the technical working groups work on a framework for discussions… both sides will have to work together to put a framework before the 90-day moratorium period is over,” he added.
Mr. Go noted the Philippine delegation was “well prepared” for the meeting, adding they discussed with Cabinet officials and the business sector before flying out.
Meanwhile, Department of Economy, Planning, and Development (DEPDev) Undersecretary Rosemarie G. Edillon said that the meeting with the USTR showed the Philippine government’s intention to strengthen trade relations with the US.
“We are very interested, especially in our trade relations, and to inform them of our initiatives to reduce, if not totally eliminate, what they call nontariff barriers,” she added.
Asked to comment, former Trade Undersecretary Rafaelita M. Aldaba said that the Philippines should get “as many products as possible in the exemption list.”
“In exchange we can offer zero tariffs on products that are important to the US,” she added.
In previous statements, Ms. Roque said that the Philippines might increase imports of US products, particularly soybeans and frozen meat, in exchange for lower tariffs.
According to the DTI Export Marketing Bureau, the US was the country’s third-largest trading partner last year, with total trade amounting to $20.29 billion.
Ateneo School of Government Dean and Economics Professor Philip Arnold P. Tuaño said that the country should also seek the reauthorization of the Generalized System of Preferences (GSP) while negotiating for lower tariffs.
“We should negotiate for lower tariffs on Philippine goods entering the United States and possibly also request the USA to reauthorize the GSP, which allows eligible developing countries to export their goods to the US tariff-free,” said Mr. Tuaño in an e-mail.
“[We should] also argue for preferential rates for strategic goods under the supply-chain resilience program, such as semiconductors and agricultural products,” he added.
While active, the Philippines was the GSP’s fifth-largest beneficiary, with about $1.6 billion in duty-free exports in 2020. This made up 10% of the total US GSP imports, which amounted to $16 billion.
The trade preference scheme eliminated duties on approximately 5,000 or 47% of the total US tariff lines. However, these benefits expired on Dec. 31, 2020.
ADB chief says Asia can’t be complacent amid tariff uncertainty
By Luisa Maria Jacinta C. Jocson, Senior Reporter
MILAN, Italy — The Asian Development Bank’s (ADB) top official said the Asia-Pacific (APAC) region must evolve to be able to withstand the shocks from tariff policies.
“Given this unprecedented uncertainty, you can’t be complacent,” ADB President Masato Kanda said during a press conference here on Sunday.
“I believe this is a good opportunity for Asian and Pacific countries to turn these challenges into the opportunity to make their economies more resilient, stronger, open and interconnected in the region and with their new partners.”
Mr. Kanda said these economies must “continue the reform path.”
“It is changing day by day. So, it’s hard to see what will happen. But for Asian countries, they are relatively exposed to these issues because they have benefited from the open trade system.”
“But I think if you compare to the past, such as the Asian financial crisis, the regional countries are much stronger,” he added.
The 58th Annual Meeting of the ADB Board of Governors is being held in Italy for the first time at a time of growing uncertainty for the global economy.
In its latest Asian Development Outlook, the ADB expects developing Asia to grow by 4.9% this year and 4.7% next year. However, these forecasts do not yet take into account the US reciprocal tariffs which are on hold until July.
Countries must implement economic policies that safeguard and sustain stability, as well as enhance regional connectivity, Mr. Kanda said.
At the opening session of the Annual Meeting of the ADB Board of Governors on Monday, Mr. Kanda reiterated the need to press forward despite the uncertainty.
“Uncertainty is not a reason for retreat. It is a call for action. It challenges us to be bolder, to move faster, and to work more closely than ever before,” he said in his speech.
“We must seize the opportunity to transform lives and build a brighter future for the next generation.”
The Asia-Pacific region is “rich with potential,” he said, which can be transformed to lasting progress with the right actions.
“We are at a critical juncture in history and there is no textbook for this situation. We must recognize that we don’t have all the answers. But we are not starting from zero.”
“Growth remains solid, driven by strong domestic demand. Trade and economic integration are deepening, not only within the region but with key partners here in Europe and around the world.”
Mr. Kanda cited four areas that will be crucial to address, including the vulnerability of food systems; the digital divide; the need for sustainable energy systems; and rising sea levels and other severe weather conditions.
Meanwhile, Bank of Italy Fabio Panetta likewise warned of the spillover effects of these restrictive tariff policies.
“Protectionism now threatens to undo these achievements and weaken the very fabric of global prosperity,” he said.
“Until the recent resurgence of trade tariffs, the Asia-Pacific region was on a path of steady growth, with inflation gradually easing.”
Mr. Panetta said the Asia-Pacific is the “most dynamic region” in the world, but flagged risks from rising trade barriers and policy uncertainty.
“These risks are acute for Asia-Pacific, but they also affect Europe, where external demand plays a crucial role in sustaining growth.”
“In this context, preserving economic integration and reinforcing international cooperation are not optional. They are essential. Multilateral institutions play a pivotal role in safeguarding openness, stability, and the shared roots that underpin global prosperity,” Mr. Panetta added.
Italian Minister of Economy and Finance Giancarlo Giorgetti also cited the need for “strong and coordinated policy actions” that are aimed at a “clearer, more stable, and predictable trading environment.”
“Enhanced collaboration would support higher and sustainable long-term economic growth, averting the downside risks and mitigating the possible consequences.”
“At the same time, it might be time to rethink globalization as we know it. While it might be true that the global economy has benefited from trade and labor relations, it is also true that the fruits of this process have not always been evenly distributed among nations, and among the various production factors within each nation.”
ADB SUPPORT
Amid these uncertainties, Mr. Kanda said the ADB stands ready to extend support to its member nations to help them cope with these shifting global trade dynamics.
“ADB is quite willing to support countries and people to protect them from these external shocks. As a result, we help them to make the economy stronger, sustainable, and inclusive.”
He cited several instruments that the multilateral institution can use to support countries, such as countercyclical financial assistance or debt management support.
“Also, we have the trade and supply chain enhancement program, which will help the trade flows and the supply chains in the region.”
The ADB will help developing countries “to reform to a more diversified economy,” Mr. Kanda said.
“We have created $100 billion in additional headroom, which we will allow us to grow our operations by 50% over the next decade — from $24 billion to $36 billion dollars a year — to meet the rising aspirations of our developing member countries.”
The ADB earlier announced that it ramped up its funding to boost food security in Asia and the Pacific to $40 billion up until 2030.
In the region, almost two billion people lack access to a nutritious diet. Developing Asia accounts for more than half of the world’s hungry population.
“At the same time, we are investing deeply in digitalization. Access to reliable, affordable, and secure digital services is a foundation for opportunity,” he said.
“ADB’s support for digital technologies is helping millions access formal financial services, modernizing payment platforms, and introducing national digital IDs in the Pacific and beyond to reduce costs, improve transparency, and strengthen trust.”
The multilateral bank is also working to commit up to $10 billion for the ASEAN Power Grid, which will “modernize and interconnect energy systems across fast-growing Southeast Asian economies.”
Government unveils 10-yr. jobs masterplan
THE PHILIPPINE government on Monday launched a 10-year employment masterplan, which is targeting to increase the labor force participation rate (LFPR) to 68.2% by 2034.
“This is a very ambitious plan. If you look at the targets, it’s simple, we want to raise our LFPR from 64% to 68%,” Department of Economy, Planning, and Development (DEPDev) Undersecretary Rosemarie G. Edillon told reporters on the sidelines of the launch on Monday.
“So, this is actually a big ask, especially since by 2035, the majority of the workforce will be coming from Gen Z and Gen Alpha. So, we actually need a big policy reform,” she added.
Launched by the DEPDev, the Department of Trade and Industry (DTI), and the Department of Labor and Employment, the Trabaho Para sa Bayan (TPB) Plan aims to strengthen and future-proof the country’s workforce.
Under the plan, the government set near-term and long-term initiatives aimed at addressing challenges faced by the local labor market, such as rapid digitalization, geopolitical tensions, climate change, and demographic shifts.
Ms. Edillon said that the country’s LFPR is the lowest among the Association of Southeast Asian Nation (ASEAN) countries.
“Taking out the COVID-19 (coronavirus disease 2019) years, our LFPR is about less than 65%, but for the other countries, it is actually in the high 60s. You have Vietnam over there with an LFPR in the high 70s,” she added.
Preliminary data from the Philippine Statistics Authority showed that LFPR in February was estimated at 64.5%. For the first two months, the average LFPR stood at 64.2%.
However, the new jobs masterplan did not indicate any targets on how many jobs will be created until 2034.
“The problem with having a target with respect to jobs is that it’s very difficult, especially since we are moving towards a framework for flexible work arrangements where it would be possible for you to hold more than one job,” said Ms. Edillon.
“We’re also moving towards having a framework for part-time jobs. So, it’s difficult [to see] how it will translate into the number of jobs,” she added.
Labor Secretary Bienvenido E. Laguesma said that there have been previous targets to create a million jobs.
“But this does not ensure there will be enough jobs created for the new entrants (to the labor market),” he said.
“It’s not that simple to say that we want to create one or two million jobs by a certain year. What we want to see is that every Filipino family will have a job,” he added.
The TPB Plan also set a target of decreasing the unemployment rate to 3% by 2034 from 3.8% in 2024 and the underemployment rate to 7-9% from 13.3% last year.
In addition, the masterplan also aims to increase the female LFPR to 59% by 2034, which Ms. Edillon said is the lowest in the ASEAN region.
“Ours is about 48.8%, while in Vietnam it is actually 72.5%. So can you just imagine how much more human capital we could add if we could actually increase the LFPR for women?” she added.
The TPB Plan is also targeting to improve the country’s domestic industry diversification and production, as well as export complexity.
Citing the Global Innovation Index, Ms. Edillon said that the two factors measure the level of sophistication of the economy.
“That is actually the goal, that we will be a more competitive country before 2034. So that is actually the goal of the National Innovation Agenda and Strategy Document,” she added.
The TPB Plan outlines priority strategies that aim to address labor demand, supply, and governance, as well as how to future-proof labor demand, supply, and governance.
Strategies to ensure labor demand include expansion of market access, encouraging investments in priority sectors, ensuring ease of doing business, establishment of a dynamic innovation ecosystem, and promotion of technology adoption and enterprise-based education and training.
To improve labor supply, the TPB Plan recognized the need to expand lifelong learning opportunities, upgrade the design of skills training programs, enhance overseas Filipino reintegration programs, and increase program take-up among disadvantaged sectors.
Meanwhile, the TPB also cited 18 policy recommendations, which are seen to create an “inclusive and dynamic labor market environment.”
These policies include the Konektadong Pinoy bill, the Lifelong Learning Development Bill, tax incentives for employees on a work-from-home program, the Freelancers’ Protection Act, and the Amendment of the Maternity Leave Law, among others. — Justine Irish D. Tabile
ASEAN+3 to ramp up regional financial cooperation to cushion global trade shocks
MILAN, Italy — Finance ministers and central bank governors from ASEAN+3 economies have pledged to further regional financial cooperation to withstand rising trade uncertainty, with the Philippines also seeking to ramp up trade with its neighbors.
In a joint statement, ASEAN+3 finance ministers and central bank governors noted “escalating trade protectionism,” which could lead to “economic fragmentation, affecting trade, investment, and capital flows across the region.”
“We call for enhanced regional unity and cooperation as we endeavor to weather the heightened uncertainty,” they added.
The 28th ASEAN+3 Finance Ministers’ and Central Bank Governors’ Meeting was held on Sunday over the ADB Annual Meeting in Milan, Italy.
The regional group is composed of the 10 Association of Southeast Asian Nations (ASEAN) member states plus China, Japan and South Korea.
“Today’s meeting reaffirmed our shared vision for a more resilient, inclusive and forward-looking ASEAN+3 vision,” Malaysian Minister of Finance II Amir Hamzah Azizan said at a press conference after the meeting on Sunday.
For its part, the Philippines said it would uphold the latest commitment to boost trade collaboration with the region, Finance Secretary Ralph G. Recto said.
“We should trade more with ASEAN as well,” Mr. Recto told BusinessWorld in a text message.
Asia was among the regions most significantly hit by the US’ sweeping reciprocal tariffs, including Vietnam (46%), Thailand (36%), Indonesia (32%) and Malaysia (24%).
The Philippines was slapped with a 17% rate, second lowest in the region.
“Our current policy priority is to reinforce long-term resilience while maintaining flexibility to address near-term challenges, including rising protectionism and volatile global financial conditions,” according to the Asian finance chiefs.
They also cited tighter global financial conditions, slowing growth and weakened investment flows.
“We urge international organizations to uphold multilateralism and promote free trade, analyze and monitor the potential impact of trade tensions on the global economy, and support their members in providing policy advice to manage the negative shocks that may arise.”
They will also push for further intra-regional trade and investment to mitigate external shocks and continue to support sustainable economic development.
“Given our financial market interlinkages, we are closely monitoring regional financial market conditions,” they said.
“We also reaffirm our resolve and commitment to ensure our financial systems and markets remain resilient despite the uncertainty, while maintaining open communication among members in light of the rapidly evolving developments.”
The ASEAN+3 officials also called for the need to rebuild fiscal policy buffers, provide well-targeted support to sustain growth and implement structural reforms.
“We will also carefully recalibrate monetary policy based on domestic conditions. We will maintain exchange rate flexibility as a buffer against external shocks.”
“Importantly, our export markets and sources of growth have become increasingly diversified over the years, with domestic demand and intraregional trade now serving as key drivers of growth,” it added.
Meanwhile, the ASEAN+3 officials cited several initiatives to enhance financial frameworks within the region.
“Recognizing the pivotal role of the ASEAN+3 Finance Process in supporting regional economies to navigate this uncertain environment, we agreed to further strengthen regional financial cooperation.”
They cited the recently approved amendments to the Chiang Mai Initiative Multilateralization (CMIM).
“We reaffirm our commitment to strengthening the CMIM as an effective regional financial safety net, a vital component of the global financial safety net,” they said.
“In this regard, we approve the amended CMIM Agreement and are committed to the swift completion of domestic procedures and the signing for its entry into force.”
Under the amendments, the rapid financing facility is introduced with the incorporation of eligible freely usable currencies (FUCs) as its currencies of choice under the CMIM.
“We believe that this new CMIM facility will enhance regional resilience by offering members timely access to emergency financing during urgent balance of payments needs, in response to sudden exogenous shocks such as pandemics and natural disasters.”
Launched in 2010, the CMIM is a multilateral arrangement among ASEAN+3 and the Hong Kong Monetary Authority. The facility’s size was later doubled to $240 billion in 2012.
“The narrowing down of (paid-in) capital models and the optimization of the new repurposing facility signaled the region’s commitment to continue adapting the CMIM amid a more volatile and unpredictable external environment,” Malaysian central bank Governor Shaik Abdul Rasheed Abdul Ghaffour said during the press conference.
Mr. Ghaffour also noted that the region agreed on the principles on how open costs in local currencies will be determined under the CMIM.
“And once finalized, CMIM will be able to fully realize the intended benefits of incorporating local currency lending. What this means is that it gives members access to different currencies and added flexibility when facing short-term liquidity difficulties,” he added.
Apart from the CMIM, other measures that the region will continue to undertake include the ASEAN+3 Fiscal Policy Exchange Initiative, Asian Bond Markets Initiative (ABMI), Disaster Risk Financing Initiative (DRFI), and ASEAN+3 Future Initiatives.
Priorities introduced this year also include “promoting fiscal exchange, updating the strategic directions, and exploring policy adjustment instrument (PAI).”
REGIONAL OUTLOOK
Meanwhile, the finance ministers and central bank chiefs expect gross domestic product (GDP) growth in the region to remain strong despite shocks.
“Underpinned by solid macroeconomic fundamentals, the region is expected to remain resilient at around 4% of GDP growth in 2025, amid ongoing external headwinds, including geopolitical and trade tensions,” they said.
In its latest regional economic outlook update, the ASEAN+3 Macroeconomic Research Office (AMRO) said it expects the region to grow by 4.2% this year and 4.1% in 2026.
AMRO projects the Philippine economy to grow by 6.3% this year, the second-fastest forecast among ASEAN, after Vietnam (6.5%.)
“Over the medium term, ASEAN+3 is expected to remain a key driver of the global economy, contributing to more than 40% of global growth.”
“Meanwhile, inflation is expected to remain low at below 2% in 2025. The region’s outlook is, however, subject to heightened uncertainties,” the think tank said. — Luisa Maria Jacinta C. Jocson
ICTSI Q1 net income climbs 14.1% on robust port activity
RAZON-LED port operator International Container Terminal Services, Inc. (ICTSI) reported a 14.1% year-on-year increase in its first-quarter (Q1) net income attributable to equity holders to $239.54 million, supported by higher port revenues and growth in consolidated volume.
“We look to the future with confidence, and with our highly disciplined business model and diversified operations, ICTSI remains resilient and in a strong position to continue to deliver financially and operationally for our stakeholders,” ICTSI Chairman and President Enrique K. Razon, Jr. said in a statement on Monday.
For the three months to March, ICTSI’s attributable net income rose to $239.54 million from $209.88 million in the same period last year.
However, the company’s growth was partially offset by the deconsolidation of PT PBM Olah Jasa Andal (OJA) in Jakarta, Indonesia.
ICTSI said that excluding the impact of discontinued operations in Indonesia, net income attributable to equity holders would have increased by 25%.
Consolidated revenues for the quarter reached $745.42 million, up 16.9% from $637.64 million a year earlier.
Broken down by region, revenues from Asia — which accounted for 42.9% of ICTSI’s total revenue for the quarter — increased by 23.34% to $319.9 million from $259.37 million.
Revenues from operations in Europe, the Middle East, and Africa (EMEA) stood at $143.36 million, up 23.6% from $116.01 million, while revenues from the Americas rose by 7.6% to $282.16 million from $262.27 million in the first quarter of 2024.
ICTSI handled a total of 3.47 million twenty-foot equivalent units (TEUs) during the period, up 12.3% from 3.09 million TEUs last year.
“Our international portfolio performed very well, with consolidated volume up 12%, benefiting from our geographic diversification across 19 countries, which has enabled us to generate continued growth,” Mr. Razon said.
Asia operations handled 1.79 million TEUs, a 6.5% increase from 1.68 million TEUs a year earlier. The EMEA region handled 700,224 TEUs, up 26.3% from 554,435 TEUs, while volume from the Americas rose by 14.4% to 980,958 TEUs from 857,663 TEUs.
The volume growth was attributed to new services, improved trade activity at several terminals, and volume recovery at Contecon Guayaquil S.A. (CGSA) in Ecuador.
ICTSI said it does not expect significant operational impact from new US tariffs, citing its diversified global portfolio of 33 terminals across 20 countries.
Capital expenditure for the first quarter amounted to $133.22 million, primarily allocated to expansion at Contecon Manzanillo S.A. (CMSA) in Mexico, ICTSI DR Congo S.A. (IDRC), Philippine terminals, and the acquisition and upgrading of equipment at select terminals.
For 2025, ICTSI has allocated approximately $580 million in capital expenditures, mainly for the development of the Southern Luzon Gateway in the Philippines and expansion projects at ICTSI Rio in Brazil and Mindanao Container Terminal (MCT).
At the stock exchange on Monday, ICTSI shares declined by P5, or 1.4%, to close at P353.40 apiece. — Ashley Erika O. Jose
Vista Land secures $150-M loan from Sumitomo Mitsui Banking
VILLAR-LED property developer Vista Land and Lifescapes, Inc. said its wholly owned subsidiary VLL International, Inc. (VLLI) has secured a $150-million syndicated term loan facility from Sumitomo Mitsui Banking Corp.
VLLI’s loan facility was obtained at an interest rate of 6.40509% per annum, Vista Land said in a regulatory filing on Monday.
“The proceeds of the term loan facility will be used for financing, refinancing, or reimbursing (directly or indirectly) working capital and general corporate purposes of the Vista Land Group,” Vista Land said.
The obligations of VLLI under the loan facility are guaranteed by Vista Land and its subsidiaries Brittany Corp., Crown Asia Properties, Inc., Camella Homes, Inc., Communities Philippines, Inc., Vistamalls, Inc., and Vista Residences, Inc.
Sumitomo Mitsui Banking Corp. Singapore Branch was the mandated lead arranger, underwriter, and bookrunner, while Sumitomo Mitsui Banking Corp. was the facility agent for the syndicated term loan facility.
Vista Land has business interests in the development of residential subdivisions and construction of housing and condominium units. It is also engaged in the development of commercial centers and recreation- and vacation-facilities.
On Monday, Vista Land shares rose by 1.85%, or three centavos, to P1.65 per share. — Revin Mikhael D. Ochave
SMPC expects DENR clearance for Antique mine this year
SEMIRARA Mining and Power Corp. (SMPC) expects to receive clearance from the Department of Environment and Natural Resources (DENR) for its mine site in Antique in the second half of the year, bringing it closer to commencing production.
“We expect to receive the ECC (environmental compliance certificate) for the Acacia Mine from the DENR within the second half of 2025,” SMPC President and Chief Operating Officer Maria Cristina C. Gotianun said during the company’s annual stockholders’ meeting on Monday.
An ECC is a document issued by the DENR to the proponent, certifying that a proposed project has been reviewed and is found to have no significant negative environmental impact.
The Acacia Mine is estimated to hold approximately 80 million metric tons of coal reserves.
Ms. Gotianun said that exploration and pre-stripping activities are currently underway, with production targeted to start by 2026.
The planned exploration of the mine site is part of the company’s P291-billion Semirara Coal Mine Complex Expansion Project in Caluya, Antique.
The expansion project aims to enhance the company’s existing Molave and Narra mines, along with future expansion in Acacia, to ensure continued coal production.
Meanwhile, SMPC Chairman and Chief Executive Officer Isidro A. Consunji said that the company is hoping the Department of Energy (DoE) will act on its request to amend specific terms of its coal operating contract this year.
“We are awaiting the DoE’s action and approval. We hope to obtain this within the year,” Mr. Consunji said.
The contract, which is set to expire in 2027, grants the company the exclusive right to conduct exploration, development, and coal-mining operations in Semirara Island.
The company said that the changes would focus on “the adjustment of the term when coal operations were under government control.”
For the duration of the contract, SMPC said it is also awaiting further clarification from the DoE on the specific terms of the contract.
The company has earmarked a capital expenditure budget of P6.9 billion for 2025, with a significant portion allocated to its coal business.
For the first three months, the company reported a 33% decline in net income to P4.4 billion, amid the continued normalization of coal selling prices, cushioned by improved performance in the power segment.
“We navigated the softer energy market through improved power generation and coal production, strengthened contracting strategies, and disciplined cost management. These fundamentals will continue to guide us in an increasingly dynamic energy landscape,” Ms. Gotianun said.
SMPC, a subsidiary of DMCI Holdings Corp., is the largest coal producer in the country. The company supplies fuel to power plants, cement factories, and other industrial facilities across the Philippines. It also exports coal to China, South Korea, Brunei, and other nearby markets.
At the local bourse on Monday, shares in the company declined by 1.49%, closing at P33 apiece. — Sheldeen Joy Talavera
SM Prime eyes premium residences in Metro Manila, Cebu
SY-LED property developer SM Prime Holdings, Inc. said it plans to develop its first premium residential properties in Metro Manila and Cebu.
“We plan to enter Metro Manila, hopefully within the year, but we also have properties ready for development in key cities like Cebu,” SM Prime Holdings Executive Vice-President and Premium Residential Line Head Jose Juan Z. Jugo said in an interview aired on Money Talks with Cathy Yang on One News on Monday.
“If things go as planned, you’ll be seeing a lot of activity from us, robust activity from the premium line in Metro Manila, in Luzon, and in Cebu.”
Last year, SM Prime announced plans to expand its residential portfolio to include high-end horizontal and vertical principal homes.
The company also said it aims to launch its first upscale residential project this year, a master-planned subdivision with sustainability, convenience, and community features.
According to Mr. Jugo, SM Development Corp. (SMDC) will continue to serve the mid-market segment, while pricing for its entry-level premium product will start at P15 million.
“Then, we plan to produce premium residential units, probably in the P25 to P30 million range, all the way to luxury units in the P50 to P60 million range,” he said, adding the company’s openness to venturing into the ultra-luxury segment.
The high-end residential segment, which is priced between P12 million and P68 million, saw a 15% quarter-on-quarter increase in sales in the January-March period, according to property consultancy firm Leechiu Property Consultants.
“Despite all the challenges the industry as a whole has faced, this segment has performed quite well,” Mr. Jugo said.
He added that the country’s declining inflation and strong economic growth prospects would make the high-end residential market attractive to foreign investors.
“The Philippines has performed ahead of the curve, which means that this opens the door for investors overseas to choose our country to put their money into rather than put it somewhere else,” Mr. Jugo said.
“So, it’s a good time to enter a very stable and very progressive market.”
Headline inflation averaged 2.2% in the first quarter, well within the Bangko Sentral ng Pilipinas’ 2-4% target. Meanwhile, the Philippine economy is projected to grow between 6-8% this year.
SM Prime, the real estate subsidiary of Sy-led conglomerate SM Investments Corp., has launched over 185,000 residential units. Its portfolio also includes 87 local malls and 22 office towers.
For 2025, SM Prime has earmarked P100 billion in capital expenditures for its malls, residences, and integrated property developments.
The listed property firm’s consolidated net income rose by 14% to P45.6 billion in 2024, as revenue increased by 10% to P140.4 billion.
On Monday, SM Prime shares declined by 0.62% or P0.15 to P24.05 apiece. — Beatriz Marie D. Cruz
‘Hollywood is dying’: Trump plans 100% levy on foreign films, deepening trade war
US PRESIDENT Donald J. Trump announced on Sunday that he plans to impose a 100% tariff on films produced overseas, extending his restrictive trade policies on US imports to the entertainment sector for the first time.
He said the US movie industry was dying a “very fast death” due to the incentives that other countries were offering to draw American filmmakers.
“This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda,” Mr. Trump said in a post on Truth Social.
The American leader said he was directing the Commerce Department and his trade representative to “immediately begin the process of instituting” the levy on foreign movies. “WE WANT MOVIES MADE IN AMERICA, AGAIN!” Mr. Trump continued.
Commerce Secretary Howard Lutnick posting on X said: “We’re on it.”
Neither Mr. Lutnick nor Mr. Trump provided any details on how the tariffs would be implemented.
MEETING WITH VOIGHT
Mr. Trump’s post followed meetings the president had over the weekend with actor Jon Voight and his manager, Steven Paul. They met with Mr. Trump at his Mar-a-Lago Club, according to people familiar with their visit who asked to not be identified because the meetings were private.
Mr. Voight and Mr. Paul presented the president with their plans for more federal tax incentives for US film and TV production. Their proposals include expanding existing tax credits and bringing back ones that have expired. The Voight group didn’t propose tariffs as part of their plan, but the president talked about those levies at their meetings. No specifics on the tariffs were discussed.
In January, Mr. Trump appointed Mr. Voight along with actors Mel Gibson and Sylvester Stallone to be special ambassadors to Hollywood with the goal of boosting US jobs.
UNCLEAR EFFECT
It’s not clear how such a tariff would work, nor how such movies would be valued for tariff collection purposes. Many films from Hollywood studios involve global production, including shooting locations in foreign countries and post-production work that can be done anywhere in the world. Other unanswered questions include whether the fee applies to films already shot, but not yet released, or only new productions.
Upcoming releases that include extensive foreign locales include Walt Disney Co.’s The Fantastic Four: First Steps, which was shot in the UK and Spain, and Universal Pictures’ Jurassic World Rebirth, with locations in Thailand, the UK, Malta, and the US.
The action follows a move by China last month to “moderately reduce” the number of Hollywood films allowed in the country in retaliation for Mr. Trump’s aggressive tariffs on the US rival. The China Film Administration said in April that the restrictions would “inevitably further reduce the domestic audience’s favorability toward American films.”
While the US film industry is the most influential in the world, foreign films have seen a rise in popularity in recent years, drawing award-winning acclaim. The South Korean thriller Parasite, for instance, won four Academy Awards, including the coveted Best Picture category in 2020.
The film and TV industry supported some 2.3 million jobs in the US in 2023, according to the Motion Picture Association trade group. The association didn’t respond to a request for comment on Mr. Trump’s tariffs made outside of regular working hours.
CONTRACTION
Film and TV work in the US has contracted in recent years for a number of reasons. Media companies have cut back on spending in an attempt to boost their profits as they shifted from traditional TV to streaming services. Those streaming services are expanding globally and looking to produce more films for foreign markets.
Spending on film and TV production in the US fell 28% between 2021 and 2024, according to data from the research firm ProdPro. Governments around the world, including those of Canada, Australia, and the UK, have offered more generous tax credits and cash rebates to lure film and TV productions, and capture a greater share of the $248 billion that Ampere Analysis predicts will be spent globally in 2025 to produce content.
Film and television production in Los Angeles has fallen by nearly 40% over the last decade, according to FilmLA, a non-profit that tracks the region’s production.
Movie and TV filming in the greater Los Angeles area declined 22% in the first quarter, reflecting California’s continued loss of business to other areas. Crew members were hoping for a rebound in Los Angeles after strikes by writers and actors in 2023, but statistics show the comeback has been slow.
The wildfires that destroyed sections of Los Angeles in January accelerated concerns that producers may look elsewhere, and that camera operators, costume designers, sound technicians and other behind-the-scenes workers may move out of town rather than try to rebuild in their neighborhoods.
The post by Mr. Trump comes after he has triggered a trade war with China, and imposed global tariffs which have roiled markets and led to fears of a US recession.
Former senior Commerce official William Reinsch, a senior fellow with the Center for Strategic and International Studies, said retaliation against Mr. Trump’s foreign movie tariffs would be devastating.
“The retaliation will kill our industry. We have a lot more to lose than to gain,” he said, adding that it would be difficult to make a national security or national emergency case for movies. — Bloomberg/Reuters
RLC maps path to P25-B income by 2030
GOKONGWEI-LED property developer Robinsons Land Corp. (RLC) is targeting to deliver P25 billion in net income by 2030, in time for its 50th anniversary, as part of a roadmap to drive transformation and long-term growth.
RLC will implement five initiatives under its “Vision 5-25-50 Roadmap” to achieve the profit goal, the company said in a regulatory filing on Monday.
One strategy is to expand the company’s investment portfolio, with plans to increase mall gross leasable area (GLA) by 50%, office space by 50%, hotel room keys by 25%, and to double its logistics capacity by 2030 to bolster its recurring earnings base.
RLC also aims to leverage its real estate investment trust (REIT) platform, RL Commercial REIT, Inc. (RCR), to expand its portfolio.
The property developer also said it will pursue premiumization of its offerings, as well as more partnerships and co-investments to broaden its reach.
RLC will also enter new business streams such as sports and entertainment centers, ecosystem synergies, and sustainability-driven customer services to enhance the customer experience.
For the first quarter, RLC’s attributable net income grew by 4% to P3.48 billion, as revenue remained at P11.03 billion. Core net income also rose by 4% to P3.48 billion.
Revenue from its investment portfolio increased by 8% to P8.52 billion, led by the malls, offices, hotels, and logistics segments. Development revenues from residential sales and joint ventures reached P2.51 billion.
“We began the year with strength and momentum, anchored by our solid and growing recurring income backbone. This resilience allows RLC to thrive amid an ever-evolving economic landscape,” RLC President and Chief Executive Officer Mybelle V. Aragon-GoBio said.
“We are seeing the rewards of our diversified investment strategy, operational excellence, and unwavering commitment to increasing shareholder return,” she added.
Mall revenue rose by 6% to P4.72 billion, as Robinsons Malls posted an 8% increase in rental revenues to P3.43 billion, driven by higher tenant sales, foot traffic, and tenant mix.
Occupancy reached 93%, as RLC opened Robinsons Pagadian in April, adding 23,800 square meters (sq.m.) of new GLA.
The office segment grew its revenue by 6% to P2.02 billion, driven by rental growth across its portfolio of 32 buildings with 793,000 sq.m. of GLA.
Hotel revenue rose by 12% to P1.51 billion, supported by growth in both international and company-owned brands. The hotel business comprises more than 4,000 room keys across 26 properties.
Revenue from Robinsons Logistics and Industrial Facilities (RLX) rose by 40% to P268 million, supported by the completion of warehouses in Calamba and San Fernando, Pampanga. RLX operates 13 industrial facilities across Metro Manila, Pampanga, and Laguna, offering 294,000 sq.m. of gross leasable space.
Robinsons Destination Estates generated P223 million in property development revenue from the deferred sale of land to joint venture entities.
RLC Residences generated P846 million in net sales from its organic projects and P47 million from joint ventures.
Meanwhile, RCR said in a separate disclosure that it expects continued growth with more possible asset infusions from RLC.
RLC still has over 1.3 million sq.m. of mall GLA and over 250,000 sq.m. of office GLA that may be infused into RCR. Other potential infusions include nearly 300,000 sq.m. of logistics GLA and around 4,000 hotel room keys.
“Aside from this, RCR continues to be on the lookout for potential assets for acquisition from third parties,” RCR said.
RCR said its current GLA stands at 828,000 sq.m., comprised of 539,000 sq.m. of office spaces and 289,000 sq.m. of mall spaces across 29 assets in 18 locations nationwide.
For the first quarter, RCR reported a 58% increase in revenue to P2.25 billion, driven by RLC’s infusion of 13 properties worth P33.9 billion last year and as occupancy rates reached 96%.
“RCR continues to reap the benefits of its massive asset infusion last year. In addition, RLC’s recent overnight block placement of its RCR shares amounting to P6.21 billion paves the way for RCR to expand its portfolio,” RCR President and Chief Executive Officer Jericho P. Go said.
On Monday, RLC shares rose by 3.05% or P0.36 to P12.16 apiece, while RCR shares increased by 0.31% or P0.02 to P6.55 each. — Revin Mikhael D. Ochave
December Avenue, Morissette collaborate on heartfelt ballad
INDIE pop rock band December Avenue has announced that its new single, “Ahon,” will feature singer Morissette Amon on vocals.
The track was performed live at an exclusive event in San Juan City on April 22, but it will officially be released on May 9. Its title, which roughly translates to “rise up,” is meant to give hope to those who are struggling in life.
For December Avenue members Zel Bautista, Jet Danao, Jem Manuel, and Gelo Cruz, “Ahon” is a personal song from which people can draw inspiration.
“On the surface level, it’s about finding your way back to your first love. That love that was lost along the way,” said Mr. Bautista, who is the band’s frontman and chief songwriter, at the event.
“When I was writing the song, it was about my own internal struggle. We’ve been performing for over 17 years now, and sometimes we get burnt out and I question my purpose. The commitment to find that purpose is represented by this song,” he explained.
December Avenue drummer Mr. Danao added that having Morissette Amon as the featured singer on the track is an honor, given her vocal prowess.
“Isa talaga siya sa pinakamahusay na singer sa Pilipinas (She really is one of the most skilled singers in the Philippines),” he said.
Ms. Amon performed “Ahon” with the band at the exclusive event, which was filmed to be part of a live performance video slated to come out shortly after the song’s release.
Mr. Bautista and Ms. Amon also did a duet of the band’s hit 2019 single “Kung ‘Di Rin Lang Ikaw” during the event. After that, December Avenue played less well-known tunes from their extensive catalog.
“We wanted to perform unfamiliar songs. Since we are anticipating a new one, we might as well introduce other songs,” Mr. Bautista said.
He explained that “Saksi Ang Langit,” in particular, “has become more important” to him, especially as a new father. For the new track “Ahon,” he pointed out that it will definitely be relatable for many.
“It symbolizes resilience from overcoming past experiences. It’s like giving yourself new hope to rise up again,” he said.
December Avenue’s “Ahon” will be out on all digital music streaming platforms on May 9. — Brontë H. Lacsamana