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Singapore passes law against foreign interference in race-based organizations

SINGAPORE – Singapore has passed a law designed to protect against foreign interference in its race-based clans and business associations, as the government looks to limit outsiders from undermining racial harmony in the multicultural city-state.

Under the Maintenance of Racial Harmony Bill, which was passed late on Tuesday, if an organization is designated as a race-based entity, they will have to disclose foreign and anonymous donations, foreign affiliations and their leadership.

The government can also impose a restraining order to stop an entity from accepting donations from a foreign principal, prohibit anonymous donations or require the entity to return or dispose of donations.

The new law also empowers the home affairs minister to issue restraining orders against individuals involved in “content that prejudices the maintenance of racial harmony in Singapore”.

Law and Home Affairs Minister K. Shanmugam told parliament the bill was not a panacea for all racial issues and could not prevent insensitivity or racial slights in everyday dealings.

“We acknowledge that it may be difficult to enforce offences outside of Singapore, but it signals our commitment to protect our racial harmony, even when the threat originates outside of Singapore.”

The law was supported by the opposition party, even though some lawmakers urged some caution.

Opposition lawmaker Gerald Giam said the broad definition of “foreign affiliation” might unintentionally create barriers for local associations with deep historical ties to overseas groups which had helped preserve Singapore’s cultural heritage.

Singapore’s resident population is 74% Chinese, 13.6% Malay, and 9% Indian, with 3.3% is classified as others.

Last year, Singapore designated businessman Chan Man Ping Philip as a “politically significant person” for activities that advanced the interests of an unspecified foreign country.

A naturalized citizen of Singapore, Mr. Chan had attended the annual session of the Chinese People’s Political Consultative Conference in Beijing and told local media the overseas Chinese community should form an “alliance” and “tell the China story well”.

Hong Kong-born Chan was the president of the Hong Kong Singapore Business Association. – Reuters

Trump administration considers adding Shein, Temu to ‘forced labor’ list, Semafor reports

The U.S. is discussing whether to add Chinese ecommerce retailers Shein and Temu to the Department of Homeland Security’s (DHS) ‘forced labor’ list, Semafor reported on Tuesday.

The Trump administration has not made a final decision on the matter and could ultimately decide not to list either, the report said, citing two sources familiar with the discussions.

The move comes after China imposed targeted tariffs on U.S. imports and put several companies, including Alphabet Inc’s Google, on notice for possible sanctions, in a measured response to U.S. President Donald Trump’s levies, which came into effect on Tuesday.

DHS, Temu, which is a subsidiary of Chinese e-commerce company PDD Holdings, and Singapore-headquartered Shein, did not immediately respond to Reuters’ requests for comment. – Reuters

US Treasury says Musk team has ‘read-only access’ to payment data

GIORGIO TROVATO/ TOMMAO WANG/UNSPLASH

WASHINGTON – The U.S. Treasury said on Tuesday that Elon Musk’s government-efficiency team has been granted “read-only access” to its payment system codes but denied that this cut off any government payments including for Social Security or Medicare.

The confirmation of a Musk associate’s access to the system codes came in a letter from a Treasury official to Democratic Senator Ron Wyden that said the review was being undertaken to “maximize payment integrity for agencies and the public”.

Treasury Secretary Scott Bessent has not commented on reports in recent days that Musk’s informal Department of Government Efficiency had gained access to the system responsible for disbursing more than $6 trillion of annual government spending.

Several thousand people gathered outside the Treasury on Tuesday to protest DOGE’s Treasury access amid his sweeping incursion into government operations, which this week led to the shutdown of the U.S. Agency for International Development, merging its aid mission into the State Department.

The payment system review “is not resulting in the suspension or rejection of any payment instructions submitted to Treasury by other federal agencies across the government.” Jonathan Blum, principal deputy assistant secretary in the Office of Legislative Affairs wrote to Senator Ron Wyden, of Oregon.

“In particular, the review at the Fiscal Service has not caused payments for obligations such as Social Security and Medicare to be delayed or re-routed,” Mr. Blum’s letter said.

The DOGE team at Treasury conducting the review is led by technology firm chief executive Tom Krause, whom the letter described as a “Treasury employee.” Mr. Krause is CEO of Cloud Software Group, which owns former independent software firms Citrix and Tibco.

Mr. Wyden raised alarms over the weekend when reports first surfaced that a team under the direction of Musk, appointed by President Donald Trump to conduct a broad review of government operations.

“I’m sure the Treasury Secretary and the president want to save face and downplay the risks as Elon Musk seizes power, but nothing they’re saying is believable or trustworthy,” Mr. Wyden said in response to Mr. Blum’s letter.

 

ANGER VENTED

Outside the Treasury, protesters waved placards with slogans including: “Nobody Elected Musk” and “Bessent, you have 1 job!! Protect our money. You already failed.”

About three dozen Democratic members of the Senate and House of Representatives tried to enter the Treasury to confront Mr. Bessent on the issue but they said they were denied access.

“Elon Musk is seizing power from the American people. We are here to fight back,” said U.S. Senator Elizabeth Warren.

Rebecca Weiss, who lives in suburban Maryland, told Reuters that she attended the protest because she is worried about what Musk will do with the payments data.

“He’s obviously a data guy, and now he has access, potentially, to everybody’s personal identifiable information, which he might take advantage of for his business purposes,” she said. “The bottom line is, we didn’t elect him. He’s muscled in illegally in a place that he’s not authorized.”

Democrats earlier on Tuesday vowed to push legislation to deny “special government employees” such as Mr. Musk’s access to sensitive government records. – Reuters

Mexican officials confident on reaching US tariff deal before new deadline

STOCK PHOTO | Image by Jorge Carlos from Pixabay

MEXICO CITY – Top Mexican officials said on Tuesday they were confident that Mexico could reach an agreement with the U.S. before threatened tariffs are due to take effect, with the U.S. demanding progress on fighting the flow of drugs and migrants to the shared border.

U.S. President Donald Trump had threatened both Mexico and Canada with 25% tariffs, but pushed their roll-out back by a month on Monday in exchange for promises from the two countries to tackle drugs and immigration.

“This month is more than enough to reach an agreement on these issues,” Economy Minister Marcelo Ebrard told journalists, adding that Mexico and the U.S. were now on a more even playing field as they come to the negotiating table.

“Over the next few days, over the next few weeks, we can give strong evidence that Mexico is willing to keep collaborating,” Foreign Minister Juan Ramon de la Fuente said. “We have the same problems in common, and both countries will do much better if we face them together.”

One of Mexico’s initial concessions was to deploy 10,000 National Guard members to the border. The first troops were shipped out on Tuesday.

Mexican President Claudia Sheinbaum’s approach to dealing with Mr. Trump’s threats – which she described as keeping a “cool head” – was lauded by analysts and politicians alike.

In contrast, Canadian Prime Minister Justin Trudeau went on the offensive, listing retaliatory tariffs. It took Mr. Trudeau two phone calls with Mr. Trump to convince the U.S. leader to hold off on tariffs, while Ms. Sheinbaum managed it in one.

Now, Ms. Sheinbaum’s team will come to the negotiating table with demands of its own, according to Mr. Ebrard.

“For example, the issue of weapons,” Mr. Ebrard said. “Because fentanyl is talked about a lot, but who are the ones arming cartels?”

Mexico argues that more than half a million guns are trafficked annually into the country from the U.S., and it has sued U.S. gunmakers for their alleged complicity in the flow of weapons across the border.

Mexico will also discuss the issue of auto manufacturing and auto parts with the U.S., according to Ebrard. U.S. automakers have a heavy presence in Mexico and parts can cross the border several times as a car is made, which would cause consumer prices to skyrocket if tariffs were to be implemented. – Reuters

Mainstream use of bamboo in construction urged amid housing shortage and climate change

photo by Edg Adrian A. Eva, BusinessWorld

by Edg Adrian A. Eva, Reporter

Bamboo, a known sustainable construction material, should be incorporated into the National Building Code (NBC) of the Philippines for mainstream use, a civil engineer and bamboo advocate said. 

Engr. Luis Felipe Lopez, general manager of BASE Foundation Inc., told BusinessWorld that the usage of bamboo in construction would address key issues like housing shortage and climate change.  

Since 2014, BASE has been conducting research and development on alternative building technologies, such as bamboo, exploring its potential for mainstream construction. 

Mr. Lopez said that bamboo lowers housing costs by 30% compared to the current standard housing costs. 

This sustainable approach is ideal for social housing projects, helping address the country’s backlog of 6.5 million housing units, according to the UN-Habitat Philippines Country Report in 2023. 

Houses made with Base Bahay technology also produce fewer carbon emissions, as climate change-contributing materials such as concrete, steel, and aluminum are reduced exponentially, Mr. Lopez said.

photo by Edg Adrian A. Eva, BusinessWorld

“Imagine if all the housing or social housing projects in the Philippines switched to a technology like ours; you would see a 70% reduction in carbon emissions in the project,” Mr. Lopez furthered. 

BASE has been advocating for the inclusion of bamboo in the NBC for the past five years, in collaboration with various organizations such as the Structural Engineers of the Philippines and Bukidnon Rep. Jose Manuel F. Alba. 

In February 2024, Mr. Alba filed House Bill 9144, or the “Act Integrating Bamboo as a Sustainable Material for the Built Environment.”  

The bill seeks to enable the mainstream adoption of bamboo in construction, including its use in high-rise structures.  

“If this bill becomes law, it will pave the way for the establishment of a bamboo structure code and a bamboo architectural code, which will be included in our National Building Code,” Mr. Alba told reporters during the Department of Science and Technology press conference in November. 

“We can now introduce engineered bamboos as columns, beams, and for constructing our buildings. Malaki ang impact nito sa construction industry natin [this will have a significant impact on our construction industry],” Mr. Alba added.

 

Skepticism 

Bamboo in Filipino construction has existed since the pre-colonial period, largely due to its abundance across the islands and its ease of setup.  

However, this very familiarity has also led to lingering skepticism, with many still reluctant to consider bamboo as a construction material for commercial infrastructures, Mr. Lopez said.

photo by Edg Adrian A. Eva, BusinessWorld

BASE Bahay Foundation Inc. aims to outgrow the stigma through years of research and development.   

“What we want to do at BASE is, through research, publications, and scientific information. We want to prove that bamboo is a strong material that, if treated properly, can last for 50 to 60 years,” Mr. Lopez said.  

On January 30, members of the press visited one of BASE’s treatment facilities adopted by Kanya Kawayan, an independent social enterprise in Nasugbu, Batangas. 

Kanya Kawayan produces 1,100 treated bamboo poles per month, along with flattened bamboo poles, locally known as “tad-tad,” which are used as inner walling for housing projects. 

Paulo Ferrer, director of business and strategic development at BASE, told reporters that construction-grade bamboo in Kanya Kawayan undergoes a nine-step treatment process to meet industry standards. 

Mr. Ferrer also said that BASE’s housing projects, which utilize treated bamboos, are designed to be insect-resistant, fire-resistant with a two-hour fire rating, and capable of withstanding category 5 typhoon.  

Just a few kilometers from the facility, members of the press visited an ongoing housing project in the “drying-in” phase, set to benefit 42 families in nearby communities.  

This project adds to the more than 2,500 houses BASE Bahay has constructed locally and internationally over the past decade, with plans to expand further into critical areas across the country in need of sustainable housing solutions.  

Philippine annual inflation at 2.9% in January

A customer buys fresh produce at the public market in Marikina. Inflation is seen to ease to the central bank’s 2-4% target range as early as September. — PHILIPPINE STAR/ WALTER BOLLOZOS

MANILA – Philippine annual inflation was 2.9% in January, matching the previous month’s rate, the statistics agency said on Wednesday.

The increase in the consumer price index in January, which was above the median forecast of a 2.7% rise in a Reuters poll, was due to increased prices of food and drinks, and higher housing and utility costs, the agency said.

Core inflation, which strips out volatile food and energy prices, slowed to an annual 2.6% in January from 2.8% in December.

On Saturday, Bangko Sentral ng Pilipinas Governor Eli Remolona said the central bank could cut its key policy rate by at least 50 basis points (bps) this year, with a 25 bps cut possible as soon as its Feb. 13 meeting.

Remolona said a reduction in interest rates would support the economy, which grew a slower-than-expected 5.2% in annual terms in the last quarter of 2024. — Reuters

Supporting children’s futures: ‘Operation Golden Heart’ brings business leaders together for a noble cause

KMC, together with A Child’s Dream Foundation, is pleased to announce, “Operation Golden Heart: A James Bond Benefit Concert,” set for Feb. 6, 2025, at 5 p.m., at SPACE on the 5th floor of One Ayala, Makati. This fund-raising concert offers the business community a meaningful opportunity to support a cause that is having a direct and positive impact on children’s lives.

The evening will blend culture, entertainment, and philanthropy, offering business leaders and professionals the chance to contribute to a brighter future for children. The concert will feature performances by acclaimed singer Jade Riccio, accompanied by the Manila Philharmonic Orchestra. Guests will also enjoy a thoughtfully crafted dining experience by Bizu Patisserie, renowned for their culinary expertise and dedication to excellence, ensuring a memorable and inspiring event.

A Cause Worth Supporting

At the heart of “Operation Golden Heart” is A Child’s Dream Foundation, an organization dedicated to improving the lives of children by providing education, healthcare, and other essential resources. The foundation’s mission is to break down barriers and create opportunities for children in underserved communities, enabling them to build better futures for themselves and their families.

Funds raised during the event will directly benefit the foundation, providing the necessary support to continue its critical work. As business leaders, we understand the importance of making a positive, lasting impact. This initiative provides a unique opportunity to support children by offering them the tools they need to overcome challenges and succeed.

This concert is more than just a charitable event; it’s a reminder that through collective action, we can create opportunities and give light to the next generation. KMC Cares is committed to supporting causes that empower communities, and through this partnership with A Child’s Dream Foundation, we hope to inspire others to take part in this important mission.

A Call to Action for Business Leaders

While the evening offers an excellent opportunity for networking, it is the cause that stands at the forefront of “Operation Golden Heart.” By attending or contributing, you will play a key role in making a lasting difference in the lives of children who need our support. This event is a chance for business leaders to demonstrate their commitment to social responsibility and community development.

The business community holds the power to lead by example. By supporting A Child’s Dream Foundation, companies and individuals alike can show that success is not solely defined by profits but by the positive change we can bring to society. Your involvement can inspire others to take action and make a difference in their communities.

The Impact of Your Support

The success of “Operation Golden Heart” relies on the collective dedication of individuals and organizations committed to shaping the future of children. Whether through attending the event, donating, or raising awareness, your involvement will have a meaningful and lasting impact.

We would like to express our sincere appreciation to our co-presenters, Maxicare and Diagold, for their generous support. Maxicare’s commitment to accessible healthcare and Diagold’s excellence in craftsmanship are instrumental in making this initiative possible.

We invite you to join us for an evening of outstanding music, fine-dining, and a shared commitment to philanthropy, all in support of A Child’s Dream Foundation. Your participation will help provide children with the essential resources they need to thrive. For more information and to be part of this impactful event, please contact us at cares@kmc.solutions.

KMC Solutions:

KMC Solutions is a premier business services company that connects top Filipino talent with the world’s fastest-growing businesses through Employer of Record (EOR) services. As the largest flexible office space provider in the Philippines, KMC delivers premium, thoughtfully designed workspaces located in key business districts to foster productivity, innovation, and growth. Offering a seamless blend of flexibility, convenience, and technology, KMC empowers businesses of all sizes and industries to thrive in an ever-changing market.

 To learn more, visit kmc.solutions.

 

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Outstanding NG debt hits P16.05T

REUTERS

THE NATIONAL Government’s (NG) outstanding debt hit P16.05 trillion at the end of 2024 amid higher debt issuances and a stronger dollar, the Bureau of the Treasury (BTr) reported on Tuesday.

Data from the Treasury showed outstanding debt rose by 9.8% or P1.44 trillion from P14.62 trillion at the end of 2023.

Month on month, the debt slipped by 0.2% from the record high P16.09 trillion as of end-November.

NG Debt Reaches ₱16.05t in 2024; Debt-to-GDP Ratio Grows to 60.7%

“The year-end debt level closely aligned with the  2025 Budget of Expenditures and Sources of Financing projections of P16.06 trillion, reflecting a minimal variance of only 0.03%,” the BTr said.

Outstanding debt as a share of gross domestic product (GDP) inched up to 60.7% as of end-2024 from 60.1% a year earlier, the Treasury said.

This was still slightly above the 60% threshold considered by multilateral lenders to be manageable for developing economies.

It was also a tad higher than the government’s 60.6% debt-to-GDP ratio target for 2024, mainly due to the “lower-than-expected full-year real GDP growth outcome of 5.6%,” the BTr said.

“Nevertheless, the minimal deviation from the programmed debt underscores NG’s effective cash and debt management strategies, including its proactive management of the level and timing of its external debt issuances amidst the volatile exchange rate environment,” it added.

The Treasury attributed the year-on-year increase in the debt stock to the “P1.31-trillion net issuance of debt instruments in line with the government’s deficit program, as well as the P208.73-billion valuation effect of US dollar strengthening.”

The Philippine peso in 2024 closed at P57.845 versus the dollar, weakening by P2.475 or 4.28% from its end-2023 finish of P55.37.

Data from the BTr showed the bulk or 68.1% of total debt stock came from domestic debt, while 31.9% came from external sources.

Domestic debt rose by 9.1% to P10.93 trillion as of end-December from P10.02 trillion at the end of 2023. This was composed mostly of government securities.

“The net issuance of domestic securities contributed P905.31 billion to the annual increase, while local currency depreciation increased the peso valuation of outstanding foreign currency-denominated domestic securities by P7.18 billion,” the Treasury said.

Month on month, domestic borrowings inched up by 0.1% from P10.92 trillion in November.

Meanwhile, foreign borrowings jumped by 11.4% to P5.12 trillion as of end-2024 from P4.6 trillion at the end of 2023.

“The year-on-year increase was mainly due to P401.74 billion in net external debt availments, while the peso depreciation against the US dollar increased external debt valuation by P201.55 billion,” the BTr said.

“Third-currency adjustments provided an P80.74 billion downward valuation offset.”

External debt consisted of P2.68 trillion in global bonds and P2.44 trillion in loans.

Last year, the government raised $4.5 billion from the international market. It issued US dollar-denominated global bonds, raising $2 billion in May and $2.5 billion in August.

Month on month, external debt slipped by 0.9% from P5.17 trillion in November “as local- and third-currency fluctuations reduced the peso valuation of foreign currency-denominated debt by P66.6 billion and P30.68 billion, respectively, while net availments added P48.87 billion.”

As of end-December, the NG’s overall guaranteed obligations slipped by 0.8% to P346.66 billion from P349.44 billion in the previous year.

Month on month, guaranteed debt slumped by 17.9% from P422.04 billion at end-November.

“The month-on-month decline/improvement in the NG outstanding debt is consistent with the stronger peso exchange rate versus the US dollar in December 2024 by 0.775 or 1.3% month on month to close at P57.485 (vs. P58.62 in November 2024),” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

“The stronger peso effectively reduced the peso equivalent of the outstanding NG foreign debt when converted to pesos,” he added.

Mr. Ricafort said outstanding debt “could go up to new record highs” after the NG’s $3.3-billion global bond issuance last month.

The Philippines raised $3.3 billion from the issuance of dollar and euro-denominated sustainability bonds in January.

The NG’s debt stock is expected to hit P17.35 trillion by end-2025.

The National Government plans to borrow P2.55 trillion this year — P2.04 trillion from the domestic market and P507.41 billion from external sources.

The government is aiming to bring down the debt-to-GDP ratio to 60.4% this year, 60.2% in 2026 and 56.3% in 2028. — A.R.A. Inosante

Philippines urged to take advantage of opportunities amid US-China trade war

ICTSI

By Justine Irish D. Tabile and Aubrey Rose A. Inosante, Reporters

THE PHILIPPINES could be an alternative investment destination for export-oriented firms amid a trade war between the United States and China.

The US on Tuesday began implementing an additional 10% tariff on goods from China, although US President Donald J. Trump postponed steep tariffs on Mexico and Canada for 30 days.

China quickly retaliated, saying it would impose 15% levies on US coal and liquefied natural gas, and 10% on crude oil, farm equipment and some vehicles, Reuters reported. The new tariffs on US exports will start on Feb. 10, the ministry said. (Read related story: “China hits back with tariffs on US goods as new levies take effect”)

Former Trade Secretary Ramon M. Lopez said the tariff increases on the three countries would make their goods more expensive for US importers, which could present an opportunity for the Philippines.

“The tariff increases on these countries will make their goods more expensive entering the US and may reduce imports from these countries, which means US businesses will seek alternative suppliers,” he said in a Viber message.

“This could present more export opportunities for the Philippines, especially if such products are competitively supplied by the country,” he added.

George N. Manzano, who teaches political economy at the University of Asia and the Pacific, said the Philippines could attract investors that are looking for other countries to use as export platforms “in order to circumvent the tariffs on China.”

“One would expect a lot of investments that are export-oriented originally destined for China looking for alternative locations. The Philippines, with its labor force supply, can tap this opportunity,” he told BusinessWorld on Monday.

However, the aggressive US tariffs could “disrupt the existing supply chains of various goods and destabilize world trade,” Mr. Manzano said.

Meanwhile, GlobalSource Partners Country Analyst Diwa C. Guinigundo said the Philippines could benefit from a possible shift in demand.

“Depending on the similarities of our exports with other affected countries, we could, of course, benefit from a possible shift in demand in favor of Philippine-made products, but this is of course an empirical question,” he told BusinessWorld in a Viber message.

However, Mr. Guinigundo warned that due to interconnected external trade and value chains, higher tariffs could eventually come to the Philippines’ doorstep.

“We could indirectly suffer from shrinking markets should overall exports to these economies are flatly imposed higher tariffs,” he said.

Ateneo School of Government Dean and Economics Professor Philip Arnold P. Tuaño said the US tariffs would be strongly felt in motor vehicle production, motor vehicle parts, oil and petroleum products, computers and mobile phones, which the Philippines could take advantage of.

“We are one of the major exporters of motor vehicle parts, and we can take advantage of suppliers who wish to move from China to take advantage of lower tariffs,” Mr. Tuaño told BusinessWorld in an e-mail.

“With potential tariffs on Chinese computers and phones, US firms may seek alternative suppliers for electronic components, which we are producing in the country,” he added.

Mr. Tuaño also said the Philippines could invite Japanese motor vehicle manufacturers and South Korean suppliers in the country to increase their investments in the Philippines.

Citing data from UN Comtrade, Mr. Tuaño said that cars, crude petroleum, phones, computers, and motor vehicle parts are the top five US import products from Canada, Mexico, and China in 2023.

However, he said the country should improve infrastructure and logistics efficiency to increase its participation in global supply, as well as invest in upskilling to meet the labor demands of emerging industries in the medium term.

Meanwhile, Leonardo A. Lanzona, an economics professor at the Ateneo de Manila University, said the tariffs could present an opportunity to reset the country’s trade policy.

“I suggest that we take this opportunity to reset our trade policy and consider the goods we can truly produce given our comparative advantage, or differentiate to create niches of our own,” he said.

“What is more important is the creation of a comprehensive strategy that focuses on and integrates the opportunities and challenges of digital transformation, climate change and participation in global value chains,” he added.

Mr. Lopez said higher tariffs imposed on goods from Canada, Mexico and China could lead to an inflationary environment, which would indirectly affect the Philippines.

“Higher tariff protection by the US may set a higher bar for domestic prices of affected products and, depending on the magnitude and scale, can be inflationary on the whole,” the former Trade chief said.

“An inflationary environment can increase pressure for higher interest rates in the US and affect the foreign exchange in many countries that can push up interest rates in these countries. All these can lead to greater uncertainties in the global economy,” he added.

The Philippines’ full-year trade balance — the difference between the values of exports and imports — grew by 3.1% year on year to a $54.21-billion deficit in 2024 from the $52.59-billion gap a year earlier, according to preliminary data from the Philippine Statistics Authority.

The United States remained the top destination for Philippine-made goods in 2024, with exports valued at $12.12 billion or 16.6% of the total.

Last month, Trade Undersecretary Ceferino S. Rodolfo said the government would push hard in securing a bilateral free trade agreement (FTA) with the US with the assumption that it would be more possible under the administration of Mr. Trump.

Mr. Trump had welcomed the Philippines’ interest in a bilateral FTA, he said.

Trump policies pose risks for PHL economy

Buildings are seen in the business district in Manila, Feb. 4, 2025. — PHILIPPINE STAR/RYAN BALDEMOR

By Luisa Maria Jacinta C. Jocson, Reporter

THE PHILIPPINE ECONOMY may face pressure amid President Donald J. Trump’s policies, which could impact the currency, inflation and remittances, Fitch Ratings said.

“Shifting economic and foreign policies in the US pose risks for the Philippines, as well as for other sovereigns,” Krisjanis Krustins, director at Fitch Ratings’ Asia-Pacific Sovereigns team and primary sovereign rating analyst for the Philippines, said in a report.

Mr. Trump began making good on his threat to impose higher import tariffs on major trading partners. A 10% tariff on all Chinese imports to the US took effect on Tuesday, but steep tariffs on imports from China and Mexico were postponed.

“Further strengthening of the US dollar from trade protectionism could put further pressure on the Philippine peso and inflation, although weaker global growth and diversion of Chinese exports could offset this to some extent,” Mr. Krustins said.

The peso has been under pressure in the past months amid the dollar surge. It fell to a record-low P59 level thrice last year.

The central bank expects inflation to average 3.3% this year and 3.5% in 2026 but warned the balance of risks to the inflation outlook remains tilted to the upside.

“The Philippines would be vulnerable to a change in US immigration policy, given the importance of remittances for domestic consumption, although these are fairly diversified,” Mr. Krustins said.

The United States typically accounts for about 40% of cash remittances to the Philippines.

Apart from tariffs, Mr. Trump also sought to impose harsher immigration measures.

Mr. Trump, a Republican, has taken an array of executive actions to deter illegal immigration, and ramping up arrests and deportations of illegal migrants, Reuters reported.

‘STRONG GROWTH’
Meanwhile, Fitch expects the country to post “strong medium-term gross domestic product (GDP) growth and gradual fiscal consolidation.”

The credit rater sees the economy growing by 5.9% this year, slightly below the government’s 6-8% target. It expects GDP to expand by 6.2% in 2026.

Growth next year will be driven by further monetary easing, infrastructure spending and trade and investment reforms, it said.

Latest data from local statistics agency showed Philippine GDP grew by a slower-than-expected 5.2% in the fourth quarter. This brought full-year growth to 5.6%, short of the 6-6.5% government goal.

“As noted in June, positive rating action would hinge on even faster growth and debt reduction, or structural improvements, such as stronger governance and GDP per head,” Mr. Krustins said.

“Nevertheless, domestic and external uncertainties have risen, with risks skewed towards slower consolidation,” he added.

The National Government’s budget deficit widened by 5.92% to P1.18 trillion in the first 11 months of 2024, the Treasury reported. The government has set a deficit ceiling at 5.7% of GDP for 2024 and targets to bring this to 3.7% by 2028.

“A focus on growth, as well as the approach of midterm elections in May 2025 will limit the scope for faster debt reduction,” Mr. Krustins said.

“The government already pared its consolidation plans in 2024, and the Finance secretary has ruled out new taxes possibly until the end of the Marcos administration in 2028.”

Fitch also cited domestic political tensions, which could “weigh on economic and fiscal performance.”

“Fierce public disagreements have erupted between President Ferdinand R. Marcos, Jr. and Vice-President Sara Duterte-Carpio and their families,” it added.

Busuanga Airport runway extension contract to be awarded by Q2

FRANCISCO B. REYES AIRPORT in Busuanga Island, Coron Municipality, Palawan. — EN.WIKIPEDIA.ORG

THE TRANSPORTATION department is set to award the contract for the extension of the Busuanga Airport’s runway by the second quarter.

The project, which is valued at P308.62 million, will extend and improve the existing runways of the Busuanga Airport, according to the document obtained by BusinessWorld.

The existing airport, also known as the Francisco B. Reyes airport, is the gateway to Coron, Palawan.

The project is set to undergo competitive bidding this quarter, the Department of Transportation (DoTr) said.

The project development will be funded by the 2025 General Appropriations Act (GAA).

The government is looking to undertake the New Busuanga Airport development project, which costs P15.15 billion. The new airport complex, which will cover 282.5 hectares, will be located next to the existing airport.

The New Busuanga Airport will involve the construction of a new runway and expansion of the passenger terminal to accommodate increasing traffic.

The airport can only accommodate 263,505 annual passengers. The New Busuanga Airport is expected to serve over 2.5 million passengers annually as more tourists flock to Coron.

Nigel Paul C. Villarete, senior adviser on public-private partnerships at the technical advisory group Libra Konsult, Inc. and former chief executive officer at Mactan-Cebu International Airport Authority, said the Busuanga Airport development project would significantly improve airport operations.

“Longer runways and better airport facilities would mean more flights to and from farther airports and destinations,” Mr. Villarete said.

He said airport operations usually take into account the flights and which other airports are planned to be serviced. “Each flight aircraft identified will need minimum runway lengths for takeoff and landing. The planning, construction and improvements of airports will be based on that.”

Mr. Villarete said expanding and upgrading the airport’s runways would also encourage airlines to expand their operations because it would allow them to use larger aircraft while also expanding their routes.

“We need to improve and upgrade many of our aviation facilities to be competitive with neighboring countries. But we need to be strategic about it,” he added.

Meanwhile, the DoTr is also working on the construction of a parallel taxiway at the Laoag International Airport in Ilocos Norte.

The P109.4-million project is also targeted for awarding by the second quarter. However, the project cost will be charged to the 2024 General Appropriations Act.

The DoTr is also set to commission a feasibility study for the Surigao Airport development project.

The agency has allocated P56.53 million to hire consultancy services to develop the feasibility study and master plan; environmental impact assessment study and detailed engineering design for the New Surigao Airport.

The DoTr last year said it is allocating P14 billion to fund the upgrade and development of regional airports in the country amid growing demand for air travel. — Ashley Erika O. Jose

Corporate registrations up 6% to 52,304 last year

PHILIPPINE STAR/MIGUEL DE GUZMAN

NEW COMPANY registrations reached 52,304 in 2024, a 6% increase from 49,506 in 2023, supported by digital platforms that streamlined applications, the Securities and Exchange Commission (SEC) said.

Stock corporations accounted for 75% or 39,146 of newly registered companies, followed by non-stock corporations at 21% or 10,782, the SEC said in an e-mailed statement on Tuesday.

The remaining 5% or 2,376 were partnerships. New registrations of one-person corporations grew by 27% to 8,640 in 2024 from 6,794 the previous year.

The SEC recorded 527,710 active registered companies as of the end of 2024.

“Digital transformation has always been one of the top priorities of the SEC to improve the efficiency of our services. Surpassing the 50,000 mark in company registrations serves as a testament that we are on the right track in encouraging entities to legitimize their operations through registration with the commission,” SEC Chairperson Emilio B. Aquino said.

In terms of location, the SEC said about 40% or 20,231 were based in Metro Manila, followed by Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) at 16% or 8,226, and Central Luzon at 12% or 6,141.

The services sector led new registrations at 86% or 44,872, with the wholesale and retail trade, and repair of motor vehicles and motorcycles segment recording 12,479 new registrants.

“In 2025, we will capitalize on the success of our digital transformation journey and explore other strategies that will bring our services closer to the public to contribute to the further improvement of ease of doing business in the Philippines,” Mr. Aquino said. 

The SEC said its digitalization initiatives, launched in 2021, reduced the registration process to three days from 34 days.

In July last year, the corporate regulator launched the third wave of digital initiatives aimed at making company registration more efficient, including the creation of a platform that eliminated the need for wet signatures and the submission of hard copies of registration requirements.

The digital initiatives also included the creation of a unit for the registration of entities covered by the Foreign Investment Act and foreign multinational firms; the establishment of an online portal to process amendment applications of corporations; and data sharing with other regulatory and enforcement agencies for improved tax administration. — Revin Mikhael D. Ochave

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