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9 in 10 Filipinos are literate — PSA

The basic literacy rate among those five years old and older Filipinos was estimated at 90%, the Philippine Statistics Authority (PSA) reported, citing data from latest survey results.

According to the PSA’s 2024 Functional Literacy, Education, and Mass Media Survey (FLEMMS), about 93.1 million Filipinos out of 103.5 million of the total population are considered to be literate on a basic level.

Levels of Literacy in the PhilippinesThe PSA defines “basic literacy” as the ability of a person to read and write a simple message in any language or dialect with understanding, and to compute or perform basic mathematical operations.

On the other hand, functional literacy is classified as the ability of a person to read, write, compute and comprehend and includes higher level of comprehension skills, such as integrating two or more pieces of information and making inferences based on the given information.

Functional literacy rate was at 70.8% or about 60.2 million Filipinos out of 85 million aged 10 to 64, the PSA said.

Females recorded a basic literacy rate of 90.9% while males posted a basic literacy rate of 89%.

Those in the 20-24 age group were the most literate at the basic level with a 96.1% rate, while those aged 60 and over were the least at 76.2%.

Seven out of 18 regions posted higher basic literacy rates than the national average.

Central Luzon led with a basic literacy rate of 92.8%. It was followed by Cordillera Administrative Region (CAR, 92.7%), Calabarzon (92.6%), Central Visayas (92.1%), National Capital Region (NCR, 92%), Northern Mindanao (90.8%), and Davao Region (90.2%).

Meanwhile, four regions surpassed the functional literacy rates at the national level. These were CAR (81.2%), NCR (79.9%), Calabarzon (77.3%), and Central Luzon (73%).

The FLEMMS is conducted every five years, and the latest edition is the seventh in the series of literacy surveys that started in 1989. The 2024 survey was conducted between September to October 2024. — Matthew Miguel L. Castillo

Philippines eyes more chips, food exports to US as tariff milder

Infineon Technologies AG's 150 mm SiC wafer on display during the opening of the company's site of a new semiconductor complex in Kulim, Malaysia, on Thursday, Aug. 8, 2024. Photographer: Samsul Said/Bloomberg

The Philippines is seeking to increase its exports to the US after President Donald Trump imposed tariffs on Manila that are lower compared with its regional peers.

Manila is setting its sights on more shipments of semiconductors, coconut and mango products to the US, Trade Secretary Cristina Roque said in an interview with Bloomberg Television’s Haidi Stroud-Watts on Friday.

“Compared to our ASEAN neighbors, we have an edge in terms of lower tariff rate,” Ms. Roque said. The Philippines is also pushing for a bilateral free trade agreement with its longtime ally to deepen economic ties, she added.

While Trump’s sweeping tariffs triggered global anxiety, the Southeast Asian nation viewed the move with “guarded optimism” and sought to capitalize on the levies that are lower relative to its Asian neighbors.

The 17% tariff on Philippine exports of goods to the US is the second lowest in Southeast Asia after Singapore’s 10%, and smaller compared to Vietnam’s 46% levy and Thailand’s 36%.

Manila isn’t as heavily reliant on external trade as neighbors Vietnam and Thailand, with exports of goods and services accounting for only over a quarter of Philippine economic output, according to the latest World Bank data.

Months before the tariff announcement, Philippine economic managers projected a 6% growth in goods exports this year, but the central bank forecast late last month only a 1% expansion. — Bloomberg

March inflation slows to near 5-year low

A stall sells assorted varieties of rice inside a market in Quezon City. PHOTO BY MIGUEL DE GUZMAN, The Philippine Star

By Aubrey Rose A. Inosante, Reporter

Inflation eased to its lowest annual rate in nearly five years in March, as food and transport costs rose at a slower pace.

Preliminary data from the Philippine Statistics Authority (PSA) showed the consumer price index rose to 1.8% in March, easing from the 2.1% in February and 3.7% a year ago.

It was within the 1.7%-2.5% forecast from the Bangko Sentral ng Pilipinas (BSP), but slightly below the 2% median estimate in a BusinessWorld poll of 18 analysts last week.

Inflation rates in the Philippines

The March print was the lowest in 58 months or since the 1.6% logged in May 2020 at the height of the coronavirus pandemic.

For the first quarter, inflation averaged 2.2%, well within the central bank’s 2-4% target.

National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said the continued decline in inflation shows the effectiveness of government efforts to stabilize prices.

“While the inflation rate continues to ease and remain within the target range, we commit to monitoring risks and shocks, particularly on anticipated electricity rate hikes and higher prices of fish and meat, and addressing them through timely and targeted interventions,” he said.

Core inflation, which excludes volatile prices of food and fuel, eased to 2.2% in March from 2.4% in the previous month and 3.4% a year prior.

“The main reason for the lower inflation rate in March 2025 compared to February 2025 is the slower increase in the prices of food and non-alcoholic beverages, which rose by 2.2%,” National Statistician Claire Dennis S. Mapa said in mixed English and Filipino on Friday.

The food and non-alcoholic beverages index rose to 2.2% in March, slowing from 2.6% in February and 5.6% in the same month in 2024.

Food inflation further eased to 2.3% in March from 2.6% a month ago and 5.7% the year prior.

This was mainly due to cereals and cereal products, which declined to 5.2% in March from the 3% drop in February and a reversal of the 17.3% increase in the same month last year.

Rice inflation further contracted to 7.7% in March from the 4.9% decline in February. This was the lowest rice inflation since the 8.4% contraction in March 2020, Mr. Mapa said.

How much did each commodity group contribute to March inflation?

“Rice prices have significantly decreased, as you may remember that when the tariff reduction started, the drop in rice prices was quite slow. But this March, there has been a substantial decrease — overall rice reduction is -7.7%,” Mr. Mapa said.

Executive Order 62, which took effect in July 2024, slashed tariffs on rice imports to 15% from 35% until 2028 to curb inflation.

The Department of Agriculture (DA) in February declared a food security emergency on rice, which authorized the National Food Authority to release buffer stocks at subsidized prices.

The DA also further lowered the maximum suggested retail price (MSRP) of 5% broken imported rice to P49 per kilo from P52 per kilo, starting March 1.

According to Mr. Mapa, the average price of regular milled rice nationwide fell by 9.8% to P46.09 in March compared to P51.11 in the same month last year.

The average price of well-milled rice slipped by 7.4% to P52.25 from P56.44 in March 2024.

Meanwhile, the price of special rice fell to P60.15 per kilo from P64.75 in the same month a year earlier.

Mr. Mapa noted the annual price growth of meat and other parts of slaughtered land animals, particularly pork meat. It eased to 8.2% in March from 8.8% in the previous month.

At the same time, transport inflation was also a source of slower inflation in March, as it contracted to 1.1% from the 0.2% drop in February.

Gasoline prices declined at a faster pace to 7.5% in March from the 4.7% drop in the month prior. Diesel costs also dropped at a quicker pace to 5% in March, from the 3.4% dip in February.

In March, pump price adjustments stood at a net decrease of P1.50 a liter for gasoline, P1.10 a liter for diesel and P2.40 a liter for kerosene.

“Also contributing to the decrease in transport inflation is the slower increase in the prices of other passenger transport by road, which had an inflation rate of 0.2%. This specifically includes tricycle fares,” Mr. Mapa said.

Mr. Mapa also noted the slower annual growth in the restaurants and accommodation services index to 2.3% in March from 2.8% a month ago.

Meanwhile, the PSA cited meat of pigs with 2.8% inflation rate as main contributor to the March inflation. This was followed by restaurants, cafe and the like, meat of poultry (10.8%), rentals (1.6%) and other pelagic fish (2.4%).

“In our food basket, meat prices are high, followed by fish. Vegetables have slightly decreased but remain relatively high. The high meat prices are primarily due to pork, which has been triggered by supply issues related to ASF (African Swine Fever),” Mr. Mapa said.

Meanwhile, inflation for the bottom 30% of income households further decelerated to 1.1% in March from 1.5% in February and 4.6% a year ago.

Consumer prices in the National Capital Region (NCR) eased to 2.1% in March from 2.3% in February. Outside NCR, inflation slowed to 1.8% from 2%.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the slower inflation in March to better weather conditions that slowed down the increase in food and vegetable prices, particularly rice.

He noted world rice prices are at the lowest in over three years or since November 2021.

Mr. Ricafort also cited the stronger peso versus the US dollar that reduced import prices and overall inflation, as well as lower global crude oil prices.

Analysts said the March inflation print gives the central bank room to cut interest rates at next week’s meeting.

“More benign inflation at 1.8% in March 2025 or already slightly below the lower end of the 2%-4% BSP inflation target would support monetary easing particularly possible -0.25 BSP rate cut as early as the April 10 BSP rate-setting meeting,” Mr. Ricafort said in a Viber message.

The BSP unexpectedly kept rates steady at its February policy review, opting to keep the benchmark at 5.75%. This after it delivered three straight 25-bp cuts at each of its meetings in August, October and December.

“Target consistent inflation and slowing growth momentum should be enough to convince the Bangko Sentral ng Pilipinas to cut rates by 25 basis points next week,” Nicholas Antonio T. Mapa, chief economist at Metropolitan Bank & Trust Co., said on social media platform X.

BSP Governor Eli M. Remolona, Jr. earlier said a rate cut is still “on the table” at the Monetary Board’s meeting this month, signaling “a few more” rate cuts for the rest of the year.

As tax hit looms, UK employers prepare to push up prices

— REUTERS/TOBY MELVILLE/FILE PHOTO

BROADSTAIRS, England – Pub owner Philip Thorley sees only one direction for his prices once a tax hike for British employers kicks in next week: up. That may be bad news for the Bank of England, which plans to lower interest rates to help the sluggish economy.

Thorley, who owns 18 hospitality sites around the seaside town of Broadstairs, said he could not absorb all the extra cost, which follows a painful run of inflation in recent years.

“We feel as though we’ve been fighting Mike Tyson with one hand tied behind our back,” Mr. Thorley said as drinkers in his Cramptons sports bar watched cycling and cricket on screens.

“We’re not a sponge. At some point we’ve got to look at it and say enough’s enough.”

Many business owners are bracing for the 25 billion-pound ($33 billion) hike in employers’ social security contributions – announced in October by finance minister Rachel Reeves and which comes into force on Sunday.

Ms. Reeves has described her first budget, which included the biggest package of tax increases in three decades, as a “once-in-a-generation” change to invest in public services and modernizing the economy.

On Wednesday, she told lawmakers that there were costs to her tax changes but being irresponsible with the public finances would be worse.

The social security hike will be felt keenly in hospitality, where two-thirds of workers are part-time and have mostly earned too little for employers to pay the contributions.

But from the start of the tax year on April 6 the threshold drops sharply, to 5,000 pounds a year from 9,100 pounds for workers aged over 21. The contributions rate will also rise.

At Cramptons, only four of 30 staff outside the kitchen earn more than the existing threshold. From next week, almost all of them will.

“It is going to be really difficult for us … to swallow this,” said Mr. Thorley, who employs about 400 people, many of them young workers. “However, we’re not going to … be making knee-jerk reactions. We’re going to try to be pragmatic about it.”

Mr. Thorley recently increased his drinks prices by 5% following an annual price hike by beer suppliers. He expects a similar rise will be needed to cover most of the tax increase.

The British Beer & Pub Association estimates the average price of a pint will go up by 21 pence – taking it above five pounds – due to the tax hike and other changes.

On April 1, Britain’s minimum wage went up by nearly 7%, with bigger increases for younger workers.

Hospitality firms are also facing a cut to COVID-era relief from a commercial property-related tax.

HIRING HIT TOO
The difference between labor costs paid by employers and employees’ take-home pay – the so-called tax wedge – is lower in Britain than among European peers, a result of decades of government policy to prioritize hiring.

But a push to narrow that difference would not be pain-free.

While some firms are planning to automate more – retailer Currys has said it will replace paper price labels with electronic labelling – most employers are considering less hiring and slower wage increases in response to Reeves’ budget.

Steve Hardeman, owner of Clevedon Fasteners which makes parts for construction and engineering firms, said the social security and minimum wage increases were the equivalent of adding two people to his staff of 28.

Rory O’Keefe, commercial director at medical device maker Europlaz, said his firm hired two people on fixed-term rather than permanent contracts and would take three students on short-term placements instead of finding graduates.

The Bank of England is waiting to see what impact the budget changes will have.

Governor Andrew Bailey and colleagues say they expect to keep cutting interest rates after three careful reductions since August, fewer than in the euro zone and United States.

Last month the BoE stressed the uncertainties hanging over the economy. They include the risk of a global trade war, which could cause a slowdown and weaker inflation. That risk grew as U.S. President Donald Trump announced a sharp increase in tariffs on imports from around the world on Wednesday .

BoE surveys of British businesses, however, have shown the most common responses to Reeves’ budget will be higher prices and to absorb the hit in profit margins.

Rob Wood, a former BoE economist, said the central bank risked underestimating the price impact of the changes, which were likely to add half a percentage point to an inflation rate already under pressure from other one-off costs, and might even push it above 4% later this year from just under 3% now.

That would be a lot lower than inflation of 11% in 2022 but more than double the BoE’s 2% target.

“The Bank of England would normally look through one-off inflation rises,” Mr. Wood, now chief UK economist at Pantheon Macroeconomics, said. “But one-off or temporary inflation has become a bit of a dirty word since COVID, after central banks misjudged this pretty heavily through 2022 and 2023.”

Rising inflation expectations among households and businesses mean the BoE cannot count on pay deal restraint, especially if Reeves’ tax increase fuels further price rises.

“If you had to pick a time to make this change, I wouldn’t have done it now,” Mr. Wood said. — Reuters

Singapore disappointed with 10% tariffs, will seek negotiation with the US: trade minister

STOCK PHOTO | Image from Rawpixel

SINGAPORE – Singapore’s trade minister said the wealthy financial hub was disappointed that the U.S. had imposed a 10% tariff on its exports despite it having a free-trade agreement and running a trade deficit with the United States.

Singapore could take countermeasures under the free-trade agreement in force since 2004, but has chosen not to do so, Trade Minister Gan Kim Yong told a press conference on Thursday.

“Retaliatory import duties will just add cost to our imports,” he said, noting that the government would be reviewing its economic forecasts because of the worsening situation.

Mr. Gan said Singapore will try to engage the U.S. to understand President Donald Trump’s areas of concern and see if they can be resolved.

“If there are no specific concerns, then it’s more difficult to argue or to negotiate,” he said.

Singapore was hit by Trump’s 10% base tariff on imports, albeit much lower than neighbors in Southeast Asia where six countries were hit with tariffs of between 32% and 49%. The U.S. had a goods trade surplus of $2.8 billion with Singapore last year, an 84.8% increase over 2023, according to the United States Trade Representative website.

Mr. Gan, who is also Singapore’s deputy prime minister, said the city-state’s data showed the U.S. trade surplus with Singapore amounted to a “substantial” $30 billion in 2024. He did not elaborate. — Reuters

Hackers strike Australia’s largest pension funds in coordinated attacks

FLATART-FREEPIK

SYDNEY – Hackers targeting Australia’s major pension funds in a series of coordinated attacks have stolen savings from some members at the biggest fund, according to a source with knowledge of the matter, and compromised more than 20,000 accounts.

National Cyber Security Coordinator Michelle McGuinness said in a statement she was aware of “cyber criminals” targeting accounts in the country’s A$4.2 trillion ($2.63 trillion) retirement savings sector and was organizing a response across the government, regulators and industry. It was still unclear how many pension funds and members were affected.

AustralianSuper, the country’s largest fund managing A$365 billion for 3.5 million members, confirmed that up to 600 member passwords had been stolen to access accounts and commit fraud.

“We took immediate action to lock these accounts and let those members know,” AustralianSuper’s Chief Member Officer Rose Kerlin said, urging all members to check their online balances.

Four AustralianSuper members had a combined A$500,000 drained from their balances and transferred to other accounts that did not belong to them, according to the source, who was not authorized to speak publicly about the matter.

AustralianSuper did not respond immediately to a request for comment.

Australian Retirement Trust, the second-largest fund managing A$300 billion for 2.4 million members, said it had detected “unusual login activity” affecting “several hundreds” of accounts. It locked impacted accounts as a precaution, though there were no suspicious transactions or changes made.

Rest Super, the default industry pension fund for retail workers, with A$93 billion of assets under management, said it suffered an attack that impacted around 20,000 accounts, or around 1% of its 2 million members.

“Over the weekend of 29-30 March 2025, Rest became aware of some unauthorized activity on our online Member Access portal,” Rest CEO Vicki Doyle said.

“We responded immediately by shutting down the Member Access portal, undertaking investigations and launching our cyber security incident response protocols.”

Insignia Financial, which manages A$327 billion, said a “malicious third-party” attempted to access online pension accounts on its Insignia Financial Expand platform. There had been no financial impact at this stage to members, an Insignia spokesperson said.

Hostplus, which has more than 1.8 million members and A$115 billion under management, also confirmed it suffered an attack. A spokesperson said no member losses had occurred but that it was still investigating the extent of the incident.

Prime Minister Anthony Albanese said he had been briefed about the hacks and said there would be a “considered” response from government agencies in time. He added that such attacks were a “regular issue” in Australia, with one occurring every six minutes.

Australia’s largest not-for-profit hospital and aged care provider St Vincent’s Health, private health insurer Medibank MPL.AX and telecom Optus have all suffered major breaches.

The government in 2023 committed A$587 million to fund a seven-year strategy to improve the cybersecurity of citizens, businesses and agencies. — Reuters

How financial institutions determine creditworthiness

Creditworthiness is how a lender judges if a borrower can and will repay a loan. Aaron M. Villegas and Khriztina T. Lim, co-founders of personal finance app Lista, explain how financial institutions determine an individual’s creditworthiness.

Interview by Aaron Michael Sy
Video editing by Arjale Queral

South Korea’s ousted leader Yoon loses reckless gamble with martial law

South Korean President Yoon Suk-yeol. — REUTERS

SEOUL – South Korea’s ousted leader Yoon Suk Yeol, a brash ex-prosecutor who came to power by repeatedly defying setbacks and taking gambles, ultimately fell victim to political recklessness that led him to impose martial law, former colleagues say.

Dogged by personal scandals involving his wife, a bitter row with political opponents whom he called communist sympathizers, and party-room rifts, Yoon was removed from the presidency on Friday in the third year of his five-year term.

The Constitutional Court upheld Yoon’s impeachment by parliament, ruling unanimously that he violated his constitutional duty by briefly declaring martial law on December 3 with no justifiable grounds.

Mr. Yoon, 64, still faces a criminal trial on charges of masterminding insurrection when he mobilized troops to try to shut down an opposition-led parliament that he accused of trying to destroy the country.

He denies wrongdoing, arguing in court that his six-hour attempt at martial law was to protect the country from “anti-state forces.”

Mr. Yoon used his legal career as a launchpad for elected office, according to a former colleague, winning the presidency in 2022.

“Yoon Suk Yeol was the most powerful prosecutor-general ever,” said Han Dong-soo, a former judge who was head of internal inspection at the prosecutors’ office under Yoon. “He used the office to carry out his plan to become president and in doing so, his actions were daring.”

Mr. Han recalls the future president remarking at a dinner he hosted with free-flowing drinks in 2020: “If I had gone to the military academy, I would have staged a coup.”

Mr. Yoon led high-profile investigations of the politically powerful, billed as a crusade against corruption that launched him into the public eye and generated the support that led to his victory in the presidential election.

But once in the presidency, he struggled to emulate his courtroom victories. Instead, he became increasingly embittered by unrelenting battles with opponents that drew out a recklessness that a former prosecution rival said was his defining trait.

By the time Mr. Yoon briefly imposed martial law in December, he was badly bruised politically.

SCANDALS, ‘AMERICAN PIE’
Mr. Yoon’s presidency was overshadowed by scandals involving his wife, Kim Keon Hee, who was accused of inappropriately accepting a Christian Dior handbag as a gift.

Mr. Yoon apologized after his conservative party suffered a crushing parliamentary election defeat last year, blamed on the scandal. But he continued to reject calls for a probe into the affair and into an allegation of stock price manipulation involving his wife and her mother.

The prosecutors’ office that investigated the allegations did not press charges against the first lady.

The past year was marked by repeated clashes with the opposition Democratic Party, while Mr. Yoon’s pro-business policies and initiatives to tackle an ageing society remained stymied. His 2025 budget was slashed by an opposition angry over his refusal to answer lingering questions about his wife.

Mr. Yoon’s struggles at home contrasted with his relative success internationally.

His push to reverse a decades-long diplomatic row with neighboring Japan and join Tokyo in three-way security cooperation with their key mutual ally, the United States, are widely seen as his signature foreign policy achievement.

Mr. Yoon’s ability to bond on a personal level, seen as the trait that gave him his early career success, was on full display at a White House event in 2023, when he took the stage and belted out the 1970s pop hit “American Pie” for an astonished then-President Joe Biden and a delighted crowd.

SHAMANS, HIGH SCHOOL BUDDIES
Born to a well-to-do family in Seoul, Yoon excelled at school and entered the elite Seoul National University to study law. But his penchant for partying caused him to repeatedly fail the bar exam before passing on the ninth try at age 30.

Mr. Yoon shot to national fame in 2016 when, as the chief investigator probing then-President Park Geun-hye for corruption, he was asked if he was out for revenge and responded that prosecutors were not “gangsters”.

The role he played in jailing Park and his surprise appointment as head of the powerful Seoul Central District Prosecutors’ Office marked the start of a dizzying rise to power.

Two years later, as prosecutor-general, he spearheaded a corruption probe of a close ally to the next president, Moon Jae-in. That made him a darling of conservatives frustrated with Moon’s liberal policies, setting Yoon up to be a candidate for president in 2022.

His term got off to a rocky start when he pushed ahead with moving the presidential office from the traditional Blue House compound to a new site, sparking questions whether it was because of a feng shui belief that the old compound was cursed. Yoon denied any involvement by himself or his wife with a shaman.

When Mr. Yoon refused to fire top officials after a 2022 Halloween crowd crush killed 159 people, he was accused of protecting his “yes men”. One was Safety Minister Lee Sang-min, a graduate of Yoon’s high school.

Another alumnus of the Choongam High School in Seoul was Kim Yong-hyun, who spearheaded the presidential office move, then served as the presidential security service chief and later as defense minister. Kim, the main figure advising Yoon to declare martial law, was also charged with insurrection. He too denies the charges.

Shin Yul, a Myongji University political science professor, said Mr. Yoon’s downfall, political near-demise was likely due to him listening to the wrong people and that he probably “still thinks he did the right thing” in declaring martial law. — Reuters

Trump tariffs provoke world condemnation and fears of a $2,300 iPhone

US President Donald Trump — REUTERS

WASHINGTON/OTTAWA/TOKYO – Countries around the world threatened to ratchet up a trade war with the United States as President Donald Trump’s sweeping tariffs ignited fears of steep price increases in the world’s largest consumer market.

The penalties announced by Mr. Trump on Wednesday triggered a plunge in world financial markets on Thursday and drew condemnation from other leaders reckoning with the end of a decades-long era of trade liberalization.

But there were conflicting messages from the White House about whether the tariffs were meant to be permanent or were a tactic to win concessions, with Mr. Trump saying they “give us great power to negotiate.”

The U.S. tariffs would amount to the highest trade barriers in more than a century: a 10% baseline tariff on all imports and higher targeted duties on some of the country’s biggest trading partners.

That could jack up the price for U.S. shoppers of everything from cannabis to running shoes to Apple’s iPhone. A high-end iPhone could cost nearly $2,300 if Apple passes the costs on to consumers, based on projections from Rosenblatt Securities.

Businesses raced to adjust. Automaker Stellantis said it would temporarily lay off U.S. workers and close plants in Canada and Mexico, while General Motors said it would increase U.S. production.

Canadian Prime Minister Mark Carney said the United States had abandoned its historic role as a champion of international economic cooperation.

“The global economy is fundamentally different today than it was yesterday,” he said as he announced a limited set of countermeasures.

Elsewhere, China vowed retaliation for Mr. Trump’s 54% tariffs on imports from the world’s No. 2 economy, as did the European Union, which faces a 20% duty.

French President Emmanuel Macron called for European countries to suspend investment in the United States.

Other trading partners, including Japan, South Korea, Mexico and India, said they would hold off on any retaliation for now as they seek concessions.

Washington’s allies and rivals alike warned of a devastating blow to global trade. Japan, one of the United States’ biggest trading partners and its largest foreign investor, is now facing a “national crisis”, Prime Minister Shigeru Ishiba told parliament.

The tariffs “clearly represent a significant risk to the global outlook at a time of sluggish growth,” IMF Managing Director Kristalina Georgieva said in a statement.

“It is important to avoid steps that could further harm the world economy. We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty,” Ms. Georgieva said.

U.S. Commerce Secretary Howard Lutnick and senior trade adviser Peter Navarro both told cable news programs on Thursday the president would not back off, and that the tariff increases were not a negotiation.

Mr. Trump then appeared to contradict them, telling reporters, “The tariffs give us great power to negotiate. Always have. I used it very well in the first administration, as you saw, but now we’re taking it to a whole new level.”

Stocks suffered a global meltdown, the U.S. dollar crumbled and oil prices were set for their worst week in months as analysts warned the tariffs could upend supply chains, hurt corporate profits and push the world economy towards recession.

The Dow fell nearly 4%, its biggest one-day percentage loss since June 2020. The S&P 500 lost nearly 5% and the tech-heavy Nasdaq .IXIC declined nearly 6%, its worst day in percentage terms since the pandemic era of March 2020.

American companies with significant overseas production took a hit. Nike shares lost 14% and Apple fell 9%.

Asian shares struggled to recover as their markets opened on Friday with Japan’s Nikkei down 1.85%, extending its 2.8% slide from Thursday. Chinese markets were closed for a holiday.

Mr. Trump says the “reciprocal” tariffs are a response to barriers put on U.S. goods, while administration officials said the tariffs would create manufacturing jobs at home and open up export markets abroad, although they cautioned it would take time to see results.

Vice President JD Vance in an interview with Newsmax faulted critics for taking a short-term view.

“That’s fundamentally what this is about, the national security of manufacturing and making the things that we need, from steel to pharmaceuticals,” Mr. Vance said.

Since returning to the White House in January, Mr. Trump’s on-again, off-again tariff threats have rattled consumer and business confidence. Mr. Trump could step back again, as the reciprocal tariffs are not due to take effect until April 9.

“The tariff plan does not appear to be well thought-out. Trade negotiations are a highly technical discipline, and in our view these proposals do not offer a serious basis for negotiations with any country,” said James Lucier, founding partner at Capital Alpha.

Economists say the tariffs could reignite inflation, raise the risk of a U.S. recession and boost costs for the average U.S. family by thousands of dollars.

Analysts said the tariffs could also alienate allies in Asia and undercut strategic efforts to contain China.

Mr. Trump has slapped a 24% tariff on Japan and a 25% tariff on South Korea, both home to major U.S. military bases. He also hit Taiwan with a 32% tariff as the island faces increased military pressure from China.

Canada and Mexico, the largest U.S. trading partners, were not hit with targeted tariffs on Wednesday, but they already face 25% tariffs on many goods and now face a separate set of tariffs on auto imports. — Reuters

Pioneer Insurance selects Sapiens to drive digital innovation in the Philippines

From left to right: Surajit Basu, Sapiens Regional Manager, Asia; Lorenzo Chan, Jr., Pioneer, Inc. President and CEO; Udi Matot, Sapiens SVP, P&C Business Unit; and Atty. Betty Medialdea, Pioneer Insurance & Surety Corp. President & CEO

Sapiens International Corporation (NASDAQ and TASE: SPNS), a leading global provider of software solutions for the insurance industry, announced that Pioneer Insurance and Surety Corporation, the leading insurance provider in the Philippines, has chosen Sapiens Insurance Platform to drive digital transformation and enhance customer experience.

The collaboration marks a significant milestone for Pioneer as it upgrades its operations, scales its capabilities, and embraces digitalization to stay ahead in the insurance industry.  This initiative will improve core processes with advanced technology to better respond to evolving market demands.

“Sapiens’ comprehensive platform will enable us to accelerate product development, automate workflows, and enhance customer journeys,” said Lorenzo Chan, President and CEO of Pioneer, Inc., the holding company of the Pioneer companies. “This partnership underscores our commitment to delivering innovative and relevant insurance solutions to our customers, while significantly improving operational efficiency. The mentorship model provided by Sapiens will also ensure self-sufficiency as we embrace this transformative journey.”

“We are proud to partner with Pioneer, a market leading insurer in the Philippines, and to demonstrate our growth in this important region,” said Roni Al-Dor, President and CEO of Sapiens. “Our insurance platform will empower Pioneer to meet their ambitious growth goals while delivering superior customer experiences. By automating and digitizing operations, Pioneer is positioning itself as a true innovator in the region’s insurance market.”

About Pioneer Insurance and Surety Corporation

For 70 years, Pioneer Insurance and Surety Corporation has been dedicated to wholeheartedly serving Filipinos through innovative and relevant insurance solutions. Over the decades, Pioneer has earned a reputation for leadership in the non-life industry, and is consistently ranked annually among the top 3 insurance companies in the Philippines by the Insurance Commission. The company is driven by its core values of integrity, excellence, and malasakit (empathy, high regard), supported by over 1,000 employees across more than 20 branches nationwide. For more information, visit https://pioneer.com.ph/.

About Sapiens

Sapiens International Corporation (NASDAQ and TASE: SPNS) is a global leader in intelligent insurance software solutions. With Sapiens’ robust platform, customer-driven partnerships, and rich ecosystem, insurers are empowered to future-proof their organizations with operational excellence in a rapidly changing marketplace. We help insurers harness the power of AI and advanced automation to support core solutions for property and casualty, workers’ compensation, and life insurance, including reinsurance, financial & compliance, data & analytics, digital, and decision management. Sapiens boasts a longtime global presence, serving over 600 customers in more than 30 countries with its innovative SaaS offerings. Recognized by industry experts and selected for the Microsoft Top 100 Partner program, Sapiens is committed to partnering with our customers for their entire transformation journey and is continuously innovating to ensure their success.

For more information visit https://sapiens.com or follow us on LinkedIn.

 

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US slaps higher tariff on Philippines

US President Donald J. Trump announced he will impose a 10% baseline tariff on all imports to the United States. — REUTERS

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

US PRESIDENT Donald J. Trump is imposing a bigger-than-expected tariff on Philippine exports to the United States, as part of a broader reciprocal tariff plan that will apply to all its trading partners.

However, Philippine government officials downplayed its impact, saying this was still lower than tariffs imposed on the rest of Southeast Asia.

Finance Secretary Ralph G. Recto said on Thursday that the Philippine economy, which is mainly driven by domestic demand, is “relatively resilient” against trade wars.

Philippines’ exports to US to be hit by Trump tariffs

“However, as with all countries, we are not spared from the impact of the expected decline in international trade and possible slowdown of global growth due to supply-chain disruptions, higher interest rates, and higher inflation,” Mr. Recto said in a statement.

Trade Secretary Cristina A. Roque said the reciprocal tariffs can provide opportunities for the Philippines as regional competitors will be subjected to higher tariffs.

“We view with guarded optimism that the recent US imposition of reciprocal tariffs will provide strategic opportunities for the Philippines to improve its economic relationship with the US,” she said in a statement.

Ms. Roque said she will request a meeting with her US counterpart to discuss “strengthening” trade relations between the two countries.

On Wednesday, Mr. Trump announced a 10% tariff on all its trading partners, which will take effect on April 5. (See related story “Trump’s tariffs stoke global trade war as China, EU hit back”).

The US will also slap individualized higher reciprocal tariffs on major trading partners including the European Union, China, Japan, South Korea and the Philippines, starting April 9.

“Foreign nations will finally be asked to pay for the privilege of access to our market — the biggest market in the world,” Mr. Trump said.

According to an infographic posted by the White House on X, the Philippines will be slapped with a 17% “discounted reciprocal tariff” as the Philippines charges a 34% tariff on the US.

However, an annex document to the executive order on reciprocal tariffs showed the adjusted reciprocal tariff for the Philippines is at 18%.

It was not immediately clear why there was a discrepancy in the tariff rates in the infographic posted on X and the annex document posted on The White House website.

Nonetheless, Philippine officials cited the 17% tariff rate in their press statements.

Among Southeast Asian countries, Cambodia faces the steepest tariff at 49%, followed by Laos (48%), Vietnam (46%), Myanmar (45%), Thailand (37%), Indonesia (32%), Malaysia (24%) and Brunei (24%). Singapore will be imposed a baseline tariff of 10%.

“The imposition of the 17% tariff, which is the second lowest, is not so bad in our opinion. We still see it as somewhat favorable,” Presidential Communications Office Undersecretary Clarissa A. Castro said at a Palace briefing in mixed English and Filipino.

Agriculture Secretary Francisco P. Tiu Laurel, Jr. said the Philippines could take advantage of the relatively lower tariff rate compared with its neighbors to “push for more sales to the US of our products.”

“The new tariffs also put the Philippines in a more advantageous position, more specifically for certain export products like coconuts. With lower tariffs than Thailand, Philippine coconut exports can be more competitive,” Ms. Roque said.

Ms. Roque noted that there are Philippine products that will be exempted from reciprocal tariffs, including copper ores and concentrates and integrated circuits.

According to a White House fact sheet, the reciprocal tariffs will not apply to certain goods, such as semiconductors, copper, pharmaceuticals, gold, and “certain minerals that are not available in the US.”

However, agri-based products, particularly food exports, are not exempted from reciprocal tariffs.

“The recent US measure has made US imports more expensive so that their domestic manufacturers can compete. Equally important for the US is to improve its access to rapidly growing economies such as the Philippines,” Ms. Roque said.

“In this regard, the Philippines aims to actively engage the US in a discussion to facilitate enhanced market access for its key export interests, such as automobiles, dairy products, frozen meat, and soybeans, within the framework of a bilateral free trade agreement.”

Special Assistant to the President for Investment and Economic Affairs Frederick D. Go said some investors may relocate and set up manufacturing facilities in the Philippines, given the relatively lower tariffs on Philippine exports to the US.

Trade Undersecretary Allan B. Gepty said it is important to maintain “good relations” with the US. “It would be good to see how we can seize opportunities from the possible trade diversion and recalibration of some investments in the region,” he said.

US President Donald J. Trump’s Reciprocal Tariffs

‘GAME CHANGER’
Fitch Ratings Head of US Economic Research Olu Sonola said Mr. Trump’s aggressive tariffs are a “game changer, not only for the US economy but for the global economy.”

“Many countries will likely end up in a recession. You can throw most forecasts out the door, if this tariff rate stays on for an extended period of time,” Mr. Sonola said.

Higher tariffs may also drive up prices and hurt demand for Philippine-made goods in the US.

“The US is the biggest export market of the Philippines, so this will have a drag on Philippine growth,” former commissioner of the Philippines Tariff Commission George N. Manzano said in a Viber message.

In 2024, the US was the top destination for Philippine exports, accounting for 17% of the total.

“US importers will put on all these additional tariffs to the selling price in the US,” Foreign Buyers Association of the Philippines  President Robert M. Young told BusinessWorld.

“The end result of this is that the Philippines will have difficulties in getting export orders due to lesser or no demand,” he added.

Asked if the Philippines could benefit from the higher tariffs imposed on other countries, Mr. Young pointed out that Philippines has higher costs.

“To start with, the Philippines was selling at a higher price than Vietnam, India, and Cambodia. Meaning, Philippine goods will be the last to be picked up from the shelves,” he said. “Also, Vietnam acted swiftly by reducing their tariff on US goods coming into Vietnam.”

The Philippines exported $12.14 billion worth of commodities to the US in 2024. Of the total, 53% or $6.43 billion were electronic products.

“Electronics and semiconductors, which comprise the bulk of Philippine exports to the US will be vulnerable. Apparel, footwear, and textile products, which rely on preferential trade agreements, may also face competitiveness issues,” Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said.

“Agricultural exports, such as coconut oil, processed fruits, and seafood, could see a decline in demand due to price sensitivity in the US market,” Mr. Rivera said.

Mr. Rivera noted the direct impact on Philippine gross domestic product (GDP) may not be “immediately severe.”

“It’s a prolonged tariff war could dampen investment sentiment and export growth. If businesses pass on higher costs to consumers, inflation may spike,” he said.

The Development Budget Coordination Committee is targeting 6-8% GDP growth this year. It is also projecting 6% and 5% growth in exports and imports, respectively, this year.

In a report, ANZ Research said it estimated that the reciprocal tariffs could have a “milder impact” on the Philippines, along with Indonesia and India, due to their lower reliance on exports.

“Our understanding is that these tariffs are not final and can be negotiated lower, depending on the extent of reduction in the bilateral trade surplus with the US,” ANZ said.

Data from the Office of the US Trade Representative showed that bilateral trade between the Philippines and the US reached $23.5 billion in 2024 — comprising $9.3 billion in US exports and $14.2 billion in imports.

The US goods trade deficit with the Philippines was $4.9 billion in 2024, up 21.8% from last year.

To mitigate the negative effects of the tariffs, Mr. Young said that “there should be a joint best effort from the Philippine government and private sector to turn their heads to other potential export markets.”

Department of Trade and Industry-Export Marketing Bureau Director Bianca Pearl R. Sykimte said that the department is already looking at new export markets such as in the Middle East and Africa.

Confederation of Wearables Exporters of the Philippines Executive Director Ma. Teresita Jocson-Agoncillo said that the reciprocal tariffs will be imposed on top of the most favored nation (MFN) apparel rates.

“It’s better for us to wait for the US side to publish guidelines. As it looks the reciprocal tariff will be MFN rates plus 17%,” she said in a Viber message. “There is still an advantage, as the Philippines has the lowest (tariff) now, against ASEAN (Association of Southeast Asian Nations) counterparts but note that in the end it can still impact global sourcing and supply chain movement.”

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