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New senators to play key role in PHL agri, trade and nat’l defense, analysts say

The Commission on Elections (COMELEC) officially proclaimed the 12 winning senators of the 2025 Philippine midterm elections at the Manila Hotel Tent City in Manila.

By Chloe Mari A. Hufana and Adrian H. Halili, Reporters

NEWLY ELECTED SENATORS in the Philippines are expected to play key roles in the country’s agriculture policy, trade, and national defense among others, analysts said separately.

Returning Senator Francis Pancratius “Kiko” N. Pangilinan is seen as a likely advocate for agriculture-centered diplomacy, leveraging his long-standing commitment to boosting the sector’s competitiveness, according to Josue Raphael J. Cortez, a diplomacy lecturer at the De La Salle-College of St. Benilde.

His legislative focus is expected to include efforts to strengthen agri-trade partnerships and integrate technological advancements to modernize farming, a sector critical to rural livelihoods but still lagging regional counterparts, he added.

The elections were widely seen as a referendum on the administration’s performance, particularly its economic and foreign policy direction. The results indicated a partial shift in voter sentiment, with a mixed slate of administration allies and opposition figures winning Senate seats.

The Commission on Elections (Comelec) on Saturday proclaimed the twelve new lawmakers, with Mr. Pangilinan placing fifth in the tight race, with over 15.34 million votes.

“The Magna Carta for Farmers, which Pangilinan first floated during his vice presidential bid in 2022, is something that he will certainly be adamant about, as it will also encompass his goal of ensuring that the rights and welfare of farmers are protected and promoted,” he said in a Facebook Messenger chat.

His role in the Rice Tariffication Law (RTL) debates “will certainly be significant,” Mr. Cortez said, as he would now be considered a “primary actor” in the agricultural sector within the Senate.

However, the academic noted it may be a tricky role as the law is still undergoing some amendments.

“In line with the Marcos administration’s aspiration to make the law more beneficial to the end of farmers and consumers alike, Senator Pangilinan can be among the ‘pressuring agents’ to ensure that the goals of the administration in its revamping of the policy will come to fruition,” Mr. Cortez said.

One of President Ferdinand R. Marcos, Jr.’s most high-profile campaign promises during the 2022 national elections was to bring down the retail price of rice to P20 per kilo, a pledge aimed at addressing food insecurity and the rising cost of living for Filipino consumers.

The Marcos administration introduced initiatives to boost local rice production, including expanded fertilizer support, mechanization, and improved irrigation. It also pursued strategic imports to stabilize supply and collaborated with local retailers to offer subsidized rice in targeted Kadiwa rolling stores and outlets.

Ateneo de Manila University, Political Science Lecturer Hansley A. Juliano said the new lawmakers could draft policies protecting farmland from takeover or gentrification.

Farmers are often forced to sell their land to developers due to unfavorable farming conditions or minimal support from the government. This has placed a strain on local production.

“We need a new law that protects land from further takeovers and uses change for gentrification,” he added in a Facebook Messenger chat.

Farmer organizations have lobbied for the insertion of anti-land conversion provisions in a proposed Land Use Act, which was approved by the House of Representatives in 2023. The bill remains pending in the Senate.

INTERNATIONAL TRADE
Moreover, Senator Paolo Benigno A. Aquino IV and former Senate President Vicente C. Sotto III, who were second and eighth, respectively, in the May polls, will likely have a hand in international trade policies.

“[Mr. Aquino] has a social entrepreneurship background, and the fact that he became the Senate Chair on the Committee on Trade, Commerce, and Entrepreneurship, it can be easily argued that he has a solid grasp already of the matter,” Mr. Cortez noted.

While Mr. Sotto has been campaigning since 2021 to include a one-liner adage, “as may be provided by law,” in the Constitution to allow Congress to provide for laws on foreign ownership, global trade, and other economic initiatives should the need arise.

“Therefore, we can also say that concerning international trade, his expertise will undoubtedly be helpful,” he added.

The broader context of international trade has also been shaped by major global developments in recent months, such as the imposition of tariffs under US President Donald J. Trump.

Mr. Cortez said the new composition of the Congress would not “totally change” in terms of international trade.

While openness to foreign capital and ownership will continue, Mr. Cortez said lawmakers will still push for policies that balance between openness and protectionism, particularly in the agriculture sector.

Lawmakers would not want to put the sector in further peril, he said.

DEFENSE AND FOREIGN POLICY
Meanwhile, returning Senator Panfilo M. Lacson, Sr., who placed seventh in the last polls, with over 15.10 million votes, is seen to influence defense policy.

“[Mr. Lacson] has been vocal in recognizing the integral role alliances may play in our quest to exercise our sole rights over the disputed territories,” Mr. Cortez added. “If one may remember, in 2021, he encouraged the country to take a more proactive stance given the aggressiveness of China towards our troops deployed in the West Philippine Sea.”

The former police chief has previously called for a more assertive approach in the disputed area, Mr. Cortez noted.

At the House of Representatives, former Senator and Representative-elect Leila M. De Lima will most likely have a hand in shaping foreign policy, especially in relation to former President Rodrigo R. Duterte’s trial before the International Criminal Court.

Her party-list, Mamamayang Liberal (ML), was the force behind probes into Mr. Duterte’s bloody war on drugs and extrajudicial killings.

“ML will be the key player in bills geared towards the issue. We can speculate, as early as now, that being part of the impeachment trial process is already a step towards this role that the Party-list will play in the Lower House,” Mr. Cortez said.

Ms. De Lima, who initiated investigations into the bloody drug war, was sent behind bars during Mr. Duterte’s presidency.

Overall, the second half of the Marcos administration may face greater pressure from the new set of lawmakers vis-à-vis its approach to China. Mr. Cortez said this pressure will mainly come from the opposition.

“However, given that the way the current regime manages matters relating to the issue seems to be a total pivot from how the former administration handled it — hence even the opposition bloc in a way also shares the same sentiments as his — then we can expect that this ‘toughened pressure’ will only be exerted by stakeholders when the strategies employed seem to not work.”

Meanwhile, University of Asia and the Pacific Institute of Law Dean Jemy Gatdula said that legislators must update and strengthen laws protecting the country’s national security.

“There should be an updating on the laws of espionage and particularly on the laws of treason so that we would have greater tools with which we could protect our national security,” Mr. Gatdula said in a Facebook chat.

This comes after reports of alleged spying activity being conducted by Beijing, to reportedly disrupt the 2025 midterm elections.

Earlier, the National Security Council said that there were “indications” that China was trying to sway the midterm national and local elections in favor of its bets. The Chinese Embassy in Manila has since denied these claims.

Local authorities had also arrested an alleged Chinese spy who had accessed data containing the identity of about 5,000 mobile phone subscribers using an international mobile subscriber identity device (IMSI) device.

HEALTHCARE AND EDUCATION
Further, Mr. Juliano said that 2025 midterm results suggested that people seek continued policies on health care, free education and general education reform.

“These things are clearly fundamental now to the survival and protection of our economic growth and addressing inequality. So there’s a whole host of policies to address in this vein,” Mr. Juliano said.

On the Healthcare sector, Mr. Juliano said that newly elected legislators should review the Universal Health Care (UHC) Act.

“The existence of Malasakit Centers will not contribute any further to addressing our healthcare issues unless we strengthen other foundational institutions and make our system, especially PhilHealth, stable and more financially capable,” he added.

Malasakit (care) Centers are government funded one-stop-shop centers that provides medical and financial assistance to indigent and financially incapacitated Filipinos.

“Increasing caps and coverage must continue and privatization should be halted sooner than later,” he said.

LABOR
Additionally, Mr. Juliano said that policies protecting the Filipino worker’s security of tenure should also be prioritized by newly elected Senators.

“There was an attempt to pass this under Duterte as Senate Bill No. 1826, but it clearly didn’t push through. We better do this now with an emerging mandate,” he said.

Similarly, Federation of Free Workers President Jose G. Matula called on the 20th congress to ban contractualization both in the private and public sectors, ensuring workers have regular and permanent employment status.

“Workers in government also deserve security of tenure, just like those in the private sector. Labor-only contracting, contracts of service, job orders, and agency work should no longer be the norm,” he said via Viber message.

In contractual schemes, employment is terminated before six months, the period which by law triggers regular employee status.

Mongolian foreign minister to visit Manila this week

DEPARTMENT OF FOREIGN AFFAIRS FACEBOOK PAGE

THE FOREIGN Minister of Mongolia will be in the Philippines this week for an official visit, with plans to deepen relations between the Manila and Ulaanbaatar, the Department of Foreign Affairs (DFA) said.

In a statement on Sunday, the DFA said that Foreign Affairs Secretary Enrique A. Manalo is set to meet with Mongolian Foreign Minister Battsetseg Batmunkh on May 19 to 20.

The two envoys “will hold a bilateral meeting to review the state of Philippines-Mongolia relations to chart ways forward to further enhance the two countries’ diplomatic relations, which have entered their sixth decade.”

The agency added that the two officials are also set to “discuss strategic issues of mutual concern.”

She is also scheduled to conduct a courtesy meeting with Philippine President Ferdinand R. Marcos, Jr. and Senate President Francis “Chiz” G. Escudero during her visit.

In a separate statement, Mongolia’s Ministry of Foreign Affairs said that it seeks to expand and develop relations and cooperation with the Philippines, which it described as “an influential member of ASEAN (Association of Southeast Asian Nations).”

The meeting is expected to “stimulate political dialogue, expand cooperation between the Ministries of Foreign Affairs, and exchange views on issues of mutual interest in international and regional cooperation.”

Ms. Battsetseg’s visit to the Philippines marks the first official visit by a Mongolian foreign minister to the country since 1984.

“It reciprocates Secretary Manalo’s trip to Ulaanbaatar on August 4 to 5, 2024, which marked the first official visit by a Philippine Foreign Secretary to Mongolia,” the DFA added.

In October, last year, Mongolia’s Deputy Prime Minister Sainbuyan Amarsaikhan, where he represented his country during the Asia-Pacific Ministerial Conference on Disaster Risk Reduction

The Philippines and Mongolia marked the 50-year anniversary of the establishment of their bilateral relations in 2023. — Adrian H. Halili

Romualdez pledges funding for P20-per-kilo rice program in 2026

PHILIPPINE STAR/WALTER BOLLOZOS

THE House of Representatives will ensure ample funding for the Marcos administration’s subsidized P20-per-kilo rice program in the 2026 national budget to ensure its sustainability, Speaker Ferdinand Martin G. Romualdez said on Sunday.

The chamber is also looking at ways to merge existing social welfare and financial aid programs into a unified rice assistance fund, aiming for an efficient and transparent rollout of subsidized rice while preventing corruption and misuse, he added.

“We will allocate the necessary funds to scale this program nationwide through the 2026 General Appropriations Act,” Mr. Romualdez said in a statement.

He said that they are also considering the use of other “targeted subsidy programs as complementary channels to reach the near-poor and vulnerable.”

The government last week started selling P20-per-kilo rice in some state-subsidized mini-markets, which would run until December this year, according to a Presidential Communications Office statement.

Only low-income families, senior citizens, solo parents and persons with disabilities could avail the subsidized rice for now.

President Ferdinand R. Marcos, Jr. campaigned in 2022 on a pledge to lower rice prices to P20-per-kilo, but the early years of his administration have been marked by a surge in the cost of rice.

The timing to push the P20-per-kilo of rice policy is “a bit suspect,” said Arjan P. Aguirre, who teaches political science at the Ateneo de Manila University.

“We cannot blame people to question the motivation here since we are expecting Mr. Marcos to be a lame duck President for the next half of his term,” he said in a Facebook Messenger chat.

Lawmakers should pursue structural reforms to address longstanding issues in the country’s agriculture sector, including the underdeveloped rice production industry and monopolies that constrain competition, he added.

“We need a more serious set of responses or strategies to address the longstanding problem of the weak agricultural sector in the Philippines.”

PRICE MONITORING
Meanwhile, more than 1,300 local government units (LGUs) across the Philippines reactivated their Local Price Coordinating Councils (LPCCs) in a nationwide effort to monitor commodity prices and curb inflationary pressure on rice, the Department of the Interior and Local Government (DILG) said on Sunday.

In total, 1,350 LGUs have revived their LPCCs, with 1,269 conducting regular market inspections, the agency said in a statement.

Additionally, 230 LGUs have tapped village officials and civil society groups to help track price fluctuations, while 1,201 have coordinated with national agencies to clamp down on hoarding and unjustified price increases.

The reactivation followed DILG Memorandum Circular 2025-044, which urged compliance with recommendations from the National Price Coordinating Council and supports the Department of Agriculture’s (DA) Bantay Presyo price monitoring program.

The LPCC, chaired by local mayors and governors, includes representatives from national agencies, consumer groups, and private sector stakeholders.

Councils are tasked with market surveillance and data-driven analysis of price movements to support interventions at the local level.

DILG said it is closely monitoring compliance nationwide to help stabilize food prices and ensure consumer protection.

Despite inflation rate slowing to 1.4% as of April 2025, from 1.8% in March, Filipinos still find essential goods, like the staple grain, expensive.

The councils are empowered to conduct market inspections, gather data on price trends, and recommend appropriate interventions in coordination with national agencies such as the DA, Department of Trade and Industry, and the Philippine National Police. — Kenneth Christiane L. Basilio and Chloe Mari A. Hufana

Dizon set for June CA appearance

TRANSPORTATION Secretary Vivencio B. Dizon on Monday asked the public to be vigilant as the agency investigates a bullet-planting scheme at the Ninoy Aquino International Airport. — PHILIPPINE STAR/MIGUEL DE GUZMAN

THE Commission on Appointments (CA) would deliberate the nominations of the Transportation secretary and top officials of the country’s constitutional bodies when Congress resumes in June, a congressman said on Sunday.

Transportation Secretary Vivencio B. Dizon would face the CA on June 3, while four ad interim commissioners from the Commission on Elections (Comelec), Civil Service Commission (CSC) and Commission on Audit (CoA) would appear before the body on June 4, Surigao del Sur Rep. Johnny T. Pimentel, an assistant minority leader of the body, said.

“The public is encouraged to submit to the CA secretariat any information, written reports, or sworn or notarized complaints regarding the appointees,” he said in a statement.

The CA is composed of 12 members each from the House of Representatives and the Senate, and has the authority to approve or reject presidential appointments.

The 19th Congress will reconvene on June 2 after a four-month break before adjourning again on June 14.

Mr. Dizon, 50, assumed his post as head of the Transportation department on Feb. 21 after his predecessor Jaime J. Bautista resigned due to health reasons. He served as presidential adviser on flagship programs and projects, as well as deputy chief implementer of the National Action Plan against COVID-19 during the Duterte administration.

In his nearly three months as Transportation secretary, he halted the rollout of a fully cashless toll collection system and again allowed jeepney drivers and operators to apply for consolidation under the government’s transport modernization program.

Meanwhile, the vetting body would also take up the appointments of Noli R. Pipo and Maria Norina S. Tangaro-Casingal as Comelec commissioners alongside Luis Meinrado C. Pañgulayan’s assignment as CSC commissioner and Douglas Michael N. Mallillin’s CoA commissioner posting. — Kenneth Christiane L. Basilio

PPA: Cargo volume up 10.5% in Q1

BW FILE PHOTO

THE Philippine Ports Authority (PPA) handled 10.50% more cargoes in the first quarter mainly driven by foreign cargo imports.

According to PPA’s preliminary data, ports within PPA’s jurisdiction handled a total of 65.77 million metric tons in the January-to-March period, marking an increase of 10.50% from the 59.52 million metric tons in the same period last year.

Broken down, domestic cargo throughput totaled 28.28 million metric tons, while PPA logged foreign cargo throughput at 37.49 million metric tons driven by imports at 26.77 million metric tons and exports at 10.71 million metric tons.

In terms of container traffic, PPA ports serviced a total of 2.04 million twenty-foot equivalent units (TEUs), up by 13.31% from the 1.80 million TEUs in the same period last year.

Meanwhile, passenger traffic declined by 2.29% in the first three months to 18.42 million from 18.85 million in 2024.

For this year, PPA expects cargo throughput to reach 301.47 million metric tons while passenger volume is projected to grow by 9.5% to 85.41 million by the end of 2025. — Ashley Erika O. Jose

DBM OKs 16,000 new teaching posts

Students attend a class at the Commonwealth High School, in Quezon City, Metro Manila, April 18, 2024. — REUTERS

THE Department of Budget and Management (DBM) has approved the creation of 16,000 new teaching positions to ensure sufficient manpower in public schools.

In a statement, the DBM said this was the first tranche of the 20,000 positions targeted for creation in 2025.

These positions include Teacher I (15,343) with salary grade 11, special science teachers (157) with Salary Grade 13, and special education teachers (500) with Salary Grade 14.

“The P4.194 billion needed to fund the new items will come from Department of Education’s (DepEd) built-in appropriations under the 2025 General Appropriations Act, specifically earmarked for hiring new school personnel,” the DBM said.

In accordance with the election ban, which took effect from March 28 to May 11, the release of appointments and Notices of Organization, Staffing, and Compensation Action takes effect only after the election period.

Budget Secretary Amenah F. Pangandaman said these new posts will support DepEd’s initiative to scale up the teaching workforce across kindergarten, elementary, junior high school, senior high school, and the alternative learning system.

“For added flexibility, the Senior High School teaching positions will be created at the division level, allowing School Division Superintendents to transfer or reassign them to where they’re most needed,” the DBM said.

This arrangement approved in 2016 by the Budget department seeks to prevent duplication and ensures efficient deployment.

DepEd said for the school year 2024-2025, over 27.012 million students had enrolled in elementary and high schools nationwide. — Aubrey Rose A. Inosante

31 of SIAP mayoral bets elected

COTABATO CITY — Only eight of the 40 mayoral candidates in Lanao del Sur of Bangsamoro region’s pioneer regional political party, the Serbisyong Inklusibo, Alyansang Progresibo (SIAP), were defeated by rivals during the May 12 elections.

Established in 1954, Lanao del Sur, which has 39 towns and whose capital is Marawi City, is the oldest and largest of the five provinces in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).

Regional officials of the Commission on Elections in BARMM and ranking SIAP leaders were quoted in radio reports in Cotabato City on Sunday as saying that 31 candidates of the party for mayors in Marawi City and in Lanao del Sur got elected during the May 12 electoral exercise.

SIAP is known for its primary agenda of promoting commerce and trade in agricultural areas in Lanao del Sur and elsewhere to generate employment for villagers and promote micro, small, and medium enterprises in far-flung areas covered by the government’s separate peace compacts with the Moro National Liberation Front and the Moro Islamic Liberation Front.

Reelected Lanao del Sur Gov. Mamintal Alonto Adiong, Jr., a senior official of SIAP, told reporters on Sunday that they are grateful to Maranao community leaders, among them merchants, and barangay officials who campaigned for their 40 candidates for mayors in Marawi City and the 39 towns in the province. — John Felix M. Unson

Russia launches war’s biggest drone attack after peace talks

FIREFIGHTERS work at the site of a private enterprise hit by a Russian drone strike, amid Russia’s attack on Ukraine’s central Kyiv region and the Dnipropetrovsk and Donetsk regions on May 18, 2025. — REUTERS

KYIV — The largest known Russian drone attack since full-scale war began in 2022 killed a woman in the Kyiv region and injured at least three people, Ukrainian authorities said early on Sunday, as Moscow stepped up strikes after peace talks on Friday.

Russia had launched 273 drones by 8 a.m. local time (5 a.m. GMT), targeting chiefly the central Kyiv region and the Dnipropetrovsk and Donetsk regions in the country’s east, Ukraine’s air force said.

Based on data provided by the air force, this was Russia’s largest drone attack on Ukraine during the war. On the eve of the third anniversary of Russia’s full-scale invasion of Ukraine on Feb. 23, Moscow launched a then-record 267 drones.

The first direct talks in three years between Russia and Ukraine on Friday failed to broker the temporary ceasefire Kyiv and its allies have been urging. The 100 minutes of talks in Istanbul yielded an agreement to trade 1,000 prisoners of war on each side.

US President Donald J. Trump said he would speak with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky on Monday.

The sustained overnight Russian drone attack on Sunday killed a 28-year-old woman in the capital region and injured at least three people, including a four-year-old child, Ukrainian authorities said.

“Unfortunately, as a result of the enemy attack in the Obukhiv district, a woman died from her injuries,” Mykola Kalashnik, governor of the Kyiv region, posted on Telegram.

Kyiv and the region around it as well as the eastern part of Ukraine were under raid warnings for nine straight hours overnight before they were called off at around 9 a.m. local time (6 a.m. GMT). Air defense units were engaged several times trying to repel attacks, the military said on Telegram.

“It’s been a tough night. The Russians have always used war and attacks to intimidate everyone in negotiations,” Andriy Kovalenko, head of Ukraine’s Centre for Countering Disinformation, said on Telegram about Sunday’s attack.

Air defense units destroyed 88 of the drones overnight. The attack also included 128 simulator drones that were lost along the way without hitting anything, Ukraine’s air force said in a statement on Telegram.

On Saturday, a Russian drone attack killed nine civilians after hitting a shuttle bus in the Sumy region in northeastern Ukraine, Kyiv said. Mr. Zelensky called the attack “deliberate” and urged stronger sanctions on Moscow, which said it had attacked a military facility.

All of those injured in the Obukhiv district just south of Kyiv city were hospitalized, Mr. Kalashnik said. Several residential buildings were damaged in the area, he added.

In the city of Kyiv, fragments of a destroyed drone damaged the roof of a nonresidential building, the city’s military administration said on Telegram. There were no reports of injuries, it added.

Reuters witnesses in and around Kyiv heard blasts that sounded like air defense units in operation. There was no immediate comment from Russia.

Both sides deny targeting civilians in the war, but thousands have been killed in the conflict, the vast majority of them Ukrainian. — Reuters

Israel airs trike kills at least 24 in Gaza as mediators host ceasefire talks

REUTERS

CAIRO — An Israeli air strike killed at least 24 Palestinians in a tent encampment housing displaced families in Khan Younis in the southern Gaza Strip, local health authorities said on Sunday, as mediators hosted a new round of talks between Israel and Hamas.

Israel expanded its military offensive in the enclave and ramped up bombing that has killed hundreds of people over the past 72 hours.

Medics said the latest strike that also killed women and children, wounded dozens of other people and set several tents ablaze.

The Gaza health ministry said Israeli strikes in the past few days had killed hundreds of Palestinians despite a visit by US President Donald J. Trump to the region.

Hamas described the strike as a “new brutal crime” in a statement on Sunday and blamed the US administration for the escalation.

The Israeli military did not immediately comment on the latest strikes, but it said in an earlier statement that it was conducting extensive strikes in areas of Gaza as part of its plan to reach its war objectives.

Egypt and Qatar mediators, backed by the United States, began a new round of indirect ceasefire talks between Israel and Hamas on Saturday, officials from both sides said.

Sources close to the negotiation told Reuters there has been no breakthrough reported in the talks in the Qatari capital, Doha, as each of the sides remained committed to its stance. — Reuters

S. Korea’s presidential candidates prepare to face off in first debate

SOUTH KOREAN soldiers salute in front of a huge national flag in Pohang, South Korea, Sept. 30, 2021. — LEE JIN-MAN/POOL VIA REUTERS

SEOUL — South Korea’s presidential candidates were scheduled to face off in their first TV debate on Sunday evening ahead of a snap election on June 3 to choose a successor to former President Yoon Suk Yeol, who was impeached over his short-lived martial law declaration in December.

Sunday’s debate, the first of three TV debates scheduled over the next two weeks, will focus on how to revitalize the struggling economy, one of the hot-button election issues.

Asia’s fourth-largest economy contracted in the first quarter as exports and consumption stalled amid fears over the impact of Washington’s aggressive tariffs and political turmoil at home.

South Korea has begun trade talks with the US and is seeking a waiver from the tariffs. After US President Donald  J. Trump slapped 25% tariffs on South Korea in April, Seoul was one of the first countries to hold face-to-face talks with Washington, following in the footsteps of Japan.

Lee Jae-myung, the main opposition Democratic Party’s candidate and the frontrunner in the race, has vowed to raise artificial intelligence investment up to 100 trillion won ($71.52 billion) and offer a production tax credit of up to 10% for semiconductors manufactured and sold domestically.

Kim Moon-soo, the presidential candidate for the conservative People Power Party, has pledged to create a government agency dedicated to innovating regulations and invest over 5% of the budget in research and development.

Mr. Lee holds a lead with 51% support in the latest Gallup Korea poll released on Friday, with Mr. Kim trailing far behind at 29%.

Former President Yoon was ousted last month over his short-lived imposition of martial law on December 3, stoking political turmoil and triggering the election.

Mr. Lee called earlier in the day for constitutional reform to allow a four-year, two-term presidency and a two-round system for presidential elections through a referendum.

South Korean presidents currently serve a single five-year term.

He also vowed to curb the presidential right to declare martial law and hold to account those responsible for the Dec. 3 martial law declaration.

“We must gather the people’s strength to root (them) out and strictly hold (them) accountable,” he told a press briefing. — Reuters

N. Korea’s Kim Jong Un oversees air drills, calls for stepped-up preparation for war

KREMLIN.RU/EVENTS/PRESIDENT/NEWS/60363/PHOTOS-COMMONS.WIKIMEDIA.ORG

SEOUL — North Korean leader Kim Jong Un supervised drills by the nation’s air force and underscored the need for a step-up in war preparation, state media said on Saturday.

Mr. Kim, who inspected anti-aircraft combat and air strike drills by North Korea’s 1st Air Division on Thursday, called for “all units in the entire military” to bring about “a breakthrough in war preparation,” KCNA reported.

Footage of the drills on North Korean state TV showed a MiG-29 jet launching a missile, which appeared to be a North Korean version of a Russia-developed mid- to long-range air-to-air missile, said Hong Min, North Korea analyst at the Korea Institute for National Unification.

So far this month, Mr. Kim has overseen a missile test, inspected tank and munitions plants, made a rare visit to the Russian embassy in Pyongyang reaffirming the country’s alliance with Russia, and supervised tank firing drills and special operations unit training.

North Korea also slammed the US State Department for placing it on a list of countries that do not fully cooperate with US counterterrorism efforts. Pyongyang has been placed on the list every year since 1997, South Korea’s Yonhap News Agency said.

“The more the US provokes the DPRK with unnecessary and inefficient malicious acts, the further it will escalate the irreconcilable hostility between the DPRK and the US,” a North Korean Foreign Ministry spokesperson said, using the country’s official name, the Democratic People’s Republic of Korea (DPRK).

“The DPRK will… take effective and proper measures to cope with the US hostile provocations in all spheres.” — Reuters

Why China’s neighbors may want currency deals with Trump

FREEPIK

SINGAPORE — As the currencies of South Korea, Taiwan and Japan rise, so too is chatter that these economies could use exchange rate revaluation as a carrot in trade talks with US President Donald Trump.

While a stronger currency has historically meant a competitive disadvantage for these Asian exporters, revaluation may now be the least costly bargaining chip in their scramble for favorable trading terms with the US.

The Korean won surged last week after officials there said currency policy was discussed at a meeting they had in Milan with US officials on May 5. That comes just days after US-Taiwan talks triggered an unprecedented 8% surge in the Taiwan dollar.

Japan’s finance minister is meanwhile seeking to meet US Treasury Secretary Scott Bessent at the G7 meetings in Canada this week to discuss foreign exchange.

Market participants have been quick to connect these developments with China’s surprise 90-day trade truce with United States on the weekend at Geneva.

“This China deal is very bad news for Korea, for Japan, for anybody waiting in the queue, because now they need to offer what China managed to avoid,” said Alicia Garcia-Herrero, chief economist for Asia Pacific at Natixis.

She believes Taiwan may have agreed to revalue its currency as part of trade negotiations, while China pushed back against such a request.

The clock is ticking for export-reliant Asia. Trump’s April 2 reciprocal tariffs, ranging from 25% for South Korea to 46% for Vietnam, were suspended for 90 days but could kick in on July 8, unless deals are struck.

There is greater urgency for China’s immediate neighbors Japan, Korea and Taiwan, which risk being displaced from semiconductor and autos supply chains as China and India expedite negotiations with Trump.

China, Japan, South Korea, Singapore, Taiwan and Vietnam are also among the economies on the US Treasury’s “monitoring list” for currency practices — something Trump’s team could use as a talking point in negotiations.

“The Koreans might think, ‘well actually a stronger currency is in our interest and so we may as well propose this in these negotiations’,” said HSBC’s chief Asia economist Fred Neumann.

“These currency angles are only coming up in certain negotiations and not in others, maybe because the US is not insisting on it, but it’s really the other country that has brought them in as a way to kind of appease US demands.”

TAIL WAGGING THE DOG
Trump and Bessent have both expressed a preference for a strong dollar, though that has done little to squelch suspicion that the US President wants an adjustment lower in the world’s top reserve currency, a deal dubbed the Mar-a-Lago accord.

“If one country comes out and agrees with the Trump team that they are going to maybe accept a slightly stronger currency, then it sets the tone for the others,” said Homin Lee, senior macro strategist at Lombard Odier in Singapore.

A weaker dollar could theoretically reduce the burgeoning US trade deficits with the rest of the world. Investors have used that hunch to sell the dollar and US assets in the past few weeks.

Taiwan’s central bank has repeatedly denied the United States asked Taipei to allow its currency to appreciate during tariff talks with Washington.

But one Taiwan source familiar with the matter expects foreign exchange issues will eventually come up in any negotiations.

“No one can withstand US pressure,” the source said, speaking on condition of anonymity given the sensitivity of the matter.

In Asia, analysts also make the case that most Asian currencies are weaker than their long-run trade-and-inflation-adjusted real effective exchange rates, which means they have room to trade higher.

Yet, analysts also say the undervaluation of the yen, won, yuan and Taiwan dollar are a result of disinflationary pressures in these economies that make their goods cheaper by the day.

“The solution to that problem would be more fiscal stimulus, more encouragement of domestic demand,” said BofA strategist Claudio Piron.

“You could argue if they appreciate their currencies, it could worsen the problem by creating more disinflation and deflation as well.”

RISKY BUSINESS
Not only is the plan fraught with such economic risks, it could also be unsafe for markets.

For one, Asian governments and citizens own tens of trillions in dollars assets that they’d need to sell as the greenback falls.

That includes a chunk of the $33 trillion of dollar-based stocks and bonds foreigners held at the end of 2024, and Asia’s roughly $7.5 trillion foreign reserves plus a couple of trillions more of dollar deposits retail investors and exporters have accumulated.

Equally challenging is the idea that governments can manipulate their currencies, even in Asia’s less open markets.

HSBC’s Neumann reckons currency deals, if any, will not be ironclad and could at most be broad statements of principles on currency management that ultimately don’t make too many demands on individual countries.

“Nowadays central banks can only lean a little bit against the wind, they can’t affect the overall direction of currencies,” he said.

Tohru Sasaki, chief strategist at Fukuoka Financial Group, says any kind of currency accord, similar to the 1985 Plaza Accord to weaken the dollar, is unlikely.

“Some people say ‘maybe the US and Japan will agree to see a 10% higher yen against the dollar.’ But how can we do it and how can we manage to keep it?” said Sasaki. “So it’s something like a dream. In the real world it’s impossible.” — Reuters