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SISA signs MoU with WiSAP to strengthen cybersecurity collaboration in PH

In photo: Representatives from the SISA and Women in Security Alliance Philippines (WiSAP) during an exclusive customer conclave hosted by SISA in Manila

SISA, a global leader in cybersecurity solutions for the digital payment industry, has signed a Memorandum of Understanding (MoU) with Women in Security Alliance Philippines (WiSAP), a nonprofit organization focused on empowering women in the cyber ecosystem, to advance cyber resilience and inclusion in the Philippines.

To formalize the collaboration, SISA hosted an exclusive customer conclave in Manila, where Founder and CEO Dharshan Shanthamurthy delivered a keynote on how the company stays ahead of emerging risks through its forensics-driven approach while tailoring solutions to meet the evolving needs of Southeast Asia.

“The future of cybersecurity lies in the intelligent intersection of compliance, AI, and forensic insight,” said Mr. Shanthamurthy. “As regulations become more complex and threats more sophisticated, organizations need to shift from reactive models to a proactive, intelligence-led security strategy. Our partnership with WiSAP is rooted in this belief, to not only raise the bar on security but also to build a stronger cyber workforce.”

Through this collaboration, SISA and WiSAP will co-develop initiatives focused on both cybersecurity readiness and inclusion. These include leadership development, technical training, and industry dialogues addressing emerging cyber risks.

The discussions highlighted the urgent need for organizations to adapt their cybersecurity strategies to address AI-enabled threats, evolving privacy mandates, and the rising expectations of regulatory bodies in a digitized economy.

Meanwhile, Mel Migriño, Chairperson and President of WiSAP, said the partnership with SISA will enable the organization to move beyond advocacy and take concrete action.

“It enables us to provide the community with access to the latest threat intelligence, compliance updates, and skills development in areas like artificial intelligence (AI) governance, threat response, and secure architecture. As the regulatory environment matures, so must our readiness to adapt,” Ms. Migriño said.

SISA is a global leader in cybersecurity solutions for the digital payment industry.

As a recognized Global Payment Forensic Investigator by the PCI Security Standards Council, SISA transforms forensic insights into preventive, detective, and corrective security strategies — helping over 1,000 organizations in more than 40 countries stay ahead of evolving cyber threats.

Furthermore, the conclave featured a series of expert-led sessions exploring the intersection of AI, data privacy, and compliance, with insights on how evolving regulations and forensic intelligence are shaping the future of cybersecurity.

The discussion was concluded with a dynamic fireside chat on “Forensic-Driven Cybersecurity in the Era of AI,” highlighting the need for intelligent, proactive defenses in today’s threat landscape.

 

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South Korea, US aim for trade package before tariff pause ends in July

SEOUL/WASHINGTON – South Korea and the United States agreed to craft a trade package aimed at removing new U.S. tariffs before the pause on reciprocal tariffs is lifted in July, Seoul’s delegation said after the first round of trade talks in Washington.

The U.S. and South Korea had a “very successful” meeting on Thursday, U.S. Treasury Secretary Scott Bessent said afterwards.

“We may be moving faster than I thought, and we will be talking technical terms as early as next week,” he told reporters.

Mr. Bessent and Trade Representative Jamieson Greer met with South Korean Finance Minister Choi Sang-mok and Industry Minister Ahn Duk-geun.

Neither side offered details on possible areas of agreement, but South Korea said in a statement it requested exemptions from reciprocal and item-specific U.S. tariffs, and offered cooperation on shipbuilding and energy as well as addressing trade imbalances.

“I think we had a very good start today,” Mr. Ahn later told reporters.

“During the meeting, the two countries reached a broad agreement on the framework for future discussions,” he said. “We also agreed to hold working-level talks next week to determine the scope and structure of talks, with the goal of producing a ‘July package’ by July 8.”

Mr. Choi said more talks will be held in South Korea on May 15-16 with Greer.

“Discussions will focus on four key areas: tariffs and non-tariff measures, economic security, investment cooperation, and currency policy,” Mr. Choi said.

 

AUTOS IN FOCUS

The discussions with South Korea took place as Mr. Bessent and other Trump administration trade team members met with a multitude of foreign finance and trade officials looking to strike tariff deals on the sidelines of this week’s meetings of the International Monetary Fund and World Bank Group in Washington.

South Korea, which faces 25% U.S. reciprocal tariffs, is among the first countries the Trump administration has initiated trade talks with, after its first face-to-face discussions last week with Japan, another key Asian ally slapped with 24% tariffs. Mr. Bessent was also due to meet Japanese officials on Thursday.

Mr. Choi said South Korea focused in particular on the automobile sector, which faces the greatest negative impact.

He also said South Korea’s finance ministry and U.S. Treasury will hold separate discussions on currency policy at the request of Mr. Bessent.

Mr. Choi told South Korean reporters that there was no mention of defense costs during the talks. Trump has previously said that sharing the cost of keeping U.S. troops in South Korea would be part of “one-stop shopping” negotiations with Seoul. But South Korea’s foreign minister said defense costs are separate matters from trade talks.

Mr. Ahn said there was no mention that a bilateral free trade deal signed in 2007, and revised during Trump’s first term, would be renegotiated.

The South Koreans also asked for understanding from the Americans that the process could be affected by the “political schedule,” apparently referring to the looming June 3 snap election in South Korea, which was called after former President Yoon Suk Yeol was ousted for his role in imposing martial law in December.

Acting President Han Duck-soo has expressed willingness to reach a deal, saying the country will not fight back against Washington as it owes the U.S. for its recovery from the 1950-1953 Korean War.

That has faced pushback from the liberal opposition who are favored to win in the election, accusing Han of rushing talks for political gain.

Experts have also noted it may be difficult for South Korea to make any firm commitment on energy projects and defense costs under an acting president.

Trump’s energy security council plans to host a summit in Alaska in early June, when it hopes Japanese and South Korean officials will announce commitments to the Alaska LNG project, a source familiar with the matter said on Thursday. – Reuters

US judges block Trump’s ability to withhold school funds over DEI

Federal judges in Maryland, New Hampshire and Washington, D.C., on Thursday blocked Republican President Donald Trump’s administration from following through on threats to cut off funding to public schools that engage in diversity, equity and inclusion efforts.

The trio of rulings – two by judges whom Trump appointed during his first term in office – came in lawsuits by teachers unions and civil rights groups that sued to prevent the U.S. Department of Education from cutting funding to K-12 schools and universities that did not cease what it called “discriminatory” DEI initiatives.

The Education Department did not immediately respond to a request for comment, but the administration is likely to appeal the decisions.

The policy at issue was outlined in a February 14 “Dear Colleague” letter from the Education Department that the administration said was intended to remind schools that receive federal funding of their obligations to comply with existing civil rights law.

The letter said schools in recent years had embraced “pervasive and repugnant race-based preferences” and “toxically indoctrinated” students by teaching about the history of systemic racism.

The letter said DEI proponents had been “smuggling” such practices into everyday training, programming and discipline, and the department advised schools that it would take action if they did not ensure their practices followed the law.

But U.S. District Judge Landya McCafferty in Concord, New Hampshire, sided with the National Education Association, the largest teachers’ union, and two other groups in finding the policy was unconstitutionally vague and violated educators’ free speech rights under the U.S. Constitution’s First Amendment.

Ms. McCafferty, an appointee of Democratic President Barack Obama, said that while the letter made clear the department’s view that DEI programs violate Title VI of the Civil Rights Act of 1964, it never defined what a “DEI program” even was.

“DEI as a concept is broad: one can imagine a wide range of viewpoints on what the values of diversity, equity, and inclusion mean when describing a program or practice,” she wrote.

She said the policy infringed the First Amendment rights of university professors, also by targeting their speech based on viewpoint if they, for example, teach students about structural racism in America.

Shortly after Ms. McCafferty ruled, U.S. District Judge Stephanie Gallagher in Baltimore issued an order similarly halting the Education Department’s policy at the behest of the American Federation of Teachers, the American Sociological Association and others.

Ms. Gallagher, a Trump appointee, said the Education Department failed to follow proper rulemaking processes and lacked the authority to adopt the policy under the Department of Education Organization Act of 1979.

That law bars the Education Department from directing or supervising a school’s curriculum, instructional program, administration or personnel, or its selection of instructional materials like textbooks.

In the Washington, D.C., case, Trump-appointed U.S. District Judge Dabney Friedrich agreed with the National Association for the Advancement of Colored People, which brought the case, that the policy was too vague.

Her ruling blocked the department from enforcing a requirement it adopted on April 3 mandating that state educational agencies certify compliance with the February policy by Thursday or lose federal funding.

Skye Perryman, whose liberal-leaning legal group Democracy Forward represented the plaintiffs in the Maryland case, in a statement said the ruling “affirms what we have always known: this administration’s attempts to censor schools, teachers, educators, colleges, and universities is unlawful.” – Reuters

China tells G20 meeting world economic growth insufficient

STOCK IMAGE | Image by WikiImages from Pixabay

BEIJING – China’s finance minister told a G20 meeting that the current world economic growth momentum was insufficient, with tariff and trade wars further impacting economic and financial stability, according to a ministry readout on Friday.

Lan Foan called on all parties to further improve the international economic and financial system by strengthening multilateral cooperation.

China advocates the settlement of trade and tariff disputes through dialogue and consultation on an equal footing, he said in his speech at the meeting in Washington.

Lan also urged for better implementation of the debt treatment mechanism under the Common Framework, and said all parties should pool more resources for Africa’s development and strengthen Africa’s capacity-building.

Lan held bilateral meetings and exchanges with several representatives, including from South Africa, the European Commission, Pakistan, Germany, South Korea, Indonesia, Britain, Japan and World Bank,

The meetings were mainly to discuss views on the macroeconomic situation, key issues of the G20 fiscal channels and bilateral cooperation, the readout said. – Reuters

China military says it monitored US warship in Taiwan Strait

https://bit.ly/3M35ndK

BEIJING – China’s military said on Thursday that it had dispatched naval and air forces to monitor and warn a U.S. guided missile destroyer that sailed through the sensitive Taiwan Strait, the second such mission since Donald Trump became U.S. president.

The U.S. Navy sends ships, occasionally accompanied by vessels from allied countries, through the Taiwan Strait about once a month. China, which claims Taiwan as its own territory, says the strategic waterway belongs to it.

China held its latest round of war games around Taiwan earlier this month, drawing condemnation from Taipei and concern from the United States and its allies.

The Eastern Theatre Command of China’s People’s Liberation Army named the ship as the guided-missile destroyer USS William P. Lawrence, and said it passed through the strait on Wednesday in an act of “public hyping”.

“Relevant remarks by the United States have inverted right and wrong, distorted legal principles, confused the public and misled international perception,” the command said in a statement, without specifying which comments it was referring to.

“We are telling the United States to stop their distortions and hyping and to work together to maintain peace and stability in the Taiwan Strait.”

The command also published a short video on its social media account of a Chinese navy sailor observing the U.S. warship with a pair of binoculars from a distance. It did not give an exact location for the encounter.

The U.S. Indo-Pacific Command said in an emailed statement that its ship had conducted a routine transit of the strait “through waters where freedoms of navigation and overflight apply in accordance with international law.”

The sailing demonstrates U.S. commitment to upholding freedom of navigation for all nations, it said.

“The international community’s navigational rights and freedoms in the Taiwan Strait should not be limited.”

The U.S. Navy’s last publicly announced sailing through the strait was in February, the month after Trump was inaugurated for a second term. – Reuters

Japan puts together economic package to help ease tariff pain, PM Ishiba says

WIKIMEDIA

TOKYO – Japan’s government has decided on an emergency economic package to help alleviate the pain on industries and households from sweeping U.S. tariffs, Prime Minister Shigeru Ishiba said on Friday.

The package includes stronger support for corporate financing, as well as subsidies to lower gasoline prices by 10 yen ($0.0700) per litre and partially compensate electricity bills for three months from July.

“I have instructed cabinet members to make the utmost efforts to aid firms and households that have been worried about tariff impacts,” Mr. Ishiba said, adding the tariff measures could

have a significant impact on industries such as automobiles and steel that support Japan’s economy.

The package will be financed by a reserve fund and a fund already earmarked for gasoline subsidies, according to Japanese media, having only a limited impact on the state budget for this financial year through March. – Reuters

Hongqi’s new EVs EH7, E-HS7 now available in the Philippines

The world of luxury electric vehicles is about to change with the EHS7, Hongqi’s All-New All-Electric SUV. -- Hongqi Philippines

IN THE electrifying realm of clean transportation, luxury automotive icon Hongqi, together with its exclusive distributor EVOxTerra, is confidently redefining all-electric vehicles with the arrival of its two new groundbreaking models into the Philippine market.

The EH7 and E-HS7 boldly showcase Hongqi’s mastery of sleek, minimalist design. This design language confidently signals Hongqi’s commitment to achieving the perfect harmony of sophistication and simplicity, tailor-made for trailblazing Filipinos ready to make a statement.

These new EH7 and E-HS7 models stand in stark contrast to their predecessors, featuring an all-new vehicular design language. With these vehicles, Hongqi firmly establishes itself as a leader in electric vehicle design, boasting clean exterior profiles, smooth, sharp lines, and an undeniable presence that commands attention with quiet authority, and a 5-star Euro NCAP safety rating on top of it all.

“Introducing the EH7 and E-HS7 in the Philippines is more than just a vehicle launch – it’s a declaration of a new design ethos,” stated Rashid Delgado, President of Hongqi Philippines. “These models embody Hongqi’s unwavering commitment to continuously push the boundaries of design, sophistication, and innovation.”

In addition to the striking exteriors, the interiors of both the EH7 and E-HS7 have been completely reimagined to amplify the luxurious comfort that the marque prides itself on, offering drivers the ultimate electric experience. With an infotainment system that flows seamlessly within the driver’s field of vision onto the dashboard, atmospheric ambient lighting, a heat & UV rejecting panoramic glass roof, and the finest premium materials, the EH7 and E-HS7 deliver a uniquely contemporary experience that is unmatched. These vehicles are guaranteed to shock the industry with an innovative overhaul of their design and features.

“We at Hongqi firmly believe that unparalleled comfort is the ultimate expression of luxury,” added Mr. Delgado. “Riding in a Hongqi transcends mere transportation; it’s an immersive experience. An experience we want you to indulge in, from the moment you step into the EH7 and E-HS7.”

Beyond their stunning aesthetics, the EH7 and E-HS7 are dynamic performers, boasting impressive specifications and functionality that rival any luxury electric vehicle on the market. The EH7 sedan, starting at P2,280,000, provides a remarkable 650 km range on a single charge, ensuring premium mobility for daily commutes and driving through the city with ease.

For those seeking greater versatility, the E-HS7 midsize SUV delivers up to 540 km of range per charge, eliminating any concerns about range during family trips or leisure getaways, perfect for the outdoors. The E-HS7 is competitively priced, starting at P2,580,000.

As Hongqi expands its footprint across the Philippines, the EH7 and E-HS7 are more than just additions to its lineup. They are definitive statements that establish the bold design direction Hongqi is confidently pursuing. For the discerning Filipino seeking to embrace clean driving while standing out from the crowd, Hongqi delivers an unmatched fusion of cutting-edge technology, superior performance, environmental consciousness, and breathtaking design, going beyond the confines of what it means to own one’s drive.

Hongqi is accepting reservations for the first limited batch of EH7 and E-HS7 units. Those interested may reserve and learn more through Hongqi’s official website at https://www.hongqi.ph or inquire through Hongqi’s showrooms nationwide in BGC, Manila Bay, Alabang and Quezon City. Visitors can also explore the marque’s other vehicles at any of the aforementioned dealerships. Additional information and updates are available through Hongqi’s official Facebook page at https://www.facebook.com/hongqi.philippines/ and Instagram at @hongqi.ph.

DBM sees faster spending after polls

Workers excavate a portion of a street in Quezon City in this file photo taken on Sept. 7, 2024. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Aubrey Rose A. Inosante, Reporter

BUDGET SECRETARY Amenah F. Pangandaman anticipates a rebound in infrastructure spending in the next two months, following an expected dip in April due to the election ban.

In an e-mail interview with BusinessWorld, Ms. Pangandaman said disbursements “tend to pick up strongly” in May and June. 

“With regard to the election ban, based on historical government spending performance for similar national and local election periods, for example, in 2019 or in 2022 (presidential election), we see a bit of a temporary slowdown when the election ban is in effect in April,” she said on April 15.

The Commission on Elections’ ban on public works spending began on March 28 and will run for 45 days. The midterm elections are scheduled for May 12.

Latest data from the Department of Budget and Management (DBM) showed spending on infrastructure and other capital outlays declined by 19.8% to P146.7 billion in December 2024 from P183 billion in the same month in 2023.

For the full year, expenditures on infrastructure and other capital outlays jumped by 10.1% to P1.33 trillion from P1.2 trillion in 2023.

Infrastructure spending data for the first three months of 2025 is yet to be released.

Ms. Pangandaman, who chairs the Development Budget Coordination Committee, said there would be “a slowdown in project execution during the first half of 2025 on account of the upcoming midterm national and local elections.”

A similar slowdown in infrastructure spending was seen in the months leading up to the May 2022 national polls.

In 2022, infrastructure and other capital expenditures fell by 9.7% in April, but inched up 2.1% in May and jumped by 51.9% in June.

Despite the expected slowdown, Ms. Pangandaman remains optimistic that infrastructure disbursements will be “robust” in 2025.

“We are optimistic that infrastructure spending will remain robust and a significant growth driver for the year, particularly from the ongoing projects which were started and accelerated ahead of the election ban,” she said.

Ms. Pangandaman noted that in the first two months of 2025, state spending already showed a 13.76% increase to P822 billion.

“When we look at other data, for instance, using bank reports for the same period to check specific agency spending performance, the disbursements of at least the Department of Public Works and Highways and the Department of Transportation — the two main infrastructure departments — combined for P83.9 billion, more than 50% of their equivalent disbursements for the comparable period in 2024 of P54.5 billion,” she said.

Ms. Pangandaman said this only factored the notices of cash allocation (NCA) disbursements and left out the non-NCA items.

The NCA is a cash authority issued by the DBM to central, regional and provincial offices and operating units through government banks to cover the cash requirements of the agencies.

“These numbers somehow indicate the relative strength of infrastructure spending that we expect for the year,” Ms. Pangandaman said.

Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc. said there may be an increase in infrastructure spending in 2025. 

“Apart from the election season, lower borrowing costs and fiscal spending to boost economic growth may also drive higher infra spending. I expect to see the increase in infra spending in the second half of the year,” Mr. Erece told BusinessWorld on Thursday. 

In addition, Mr. Erece expects public-private partnerships projects to “prosper” amid lower borrowing cost and fiscal spending.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said infrastructure spending has become a major contributor to economic growth and development.

He noted that infrastructure spending’s share in gross domestic product has gone up to 5-6% in recent years, sharply higher than the less than 2% share in the last 20-30 years.

Benign inflation gives BSP more space to keep cutting — Nomura

Vendors display different varieties of rice at a stall inside Mega Q-Mart in Quezon City, March 27. Inflation sharply slowed to 1.8% in March, the lowest print in nearly five years. — PHILIPPINE STAR/MIGUEL DE GUZMAN

THE BANGKO Sentral ng Pilipinas (BSP) has more than enough room to ease rates further as inflation is expected to settle near the lower end of the 2-4% target band this year.

“For as long as inflation remains benign, I think that would give the BSP a lot of scope to keep cutting,” Nomura Global Markets Research analyst Euben Paracuelles said on Money Talks with Cathy Yang on One News.

Nomura expects headline inflation to average 2.2% this year, near the lower end of the central bank’s 2-4% target range.

“To me, that really gives them a lot of flexibility to keep cutting, especially in this environment when there are some external headwinds that are putting some pressure on growth. They could focus on supporting that a little bit.”

Inflation sharply slowed to 1.8% in March, the lowest print in nearly five years. This brought average headline inflation to 2.2% in the first quarter.

The BSP sees inflation averaging 2.3% in 2025 and 3.3% in 2026, pricing in risks.

“I’ve always said that the BSP across the central banks that I follow in the region is among the more orthodox inflation targeters,” Mr. Paracuelles said. “What that means is they’re sticking to this inflation-targeting framework and not really too worried about other things like the currency.”

The Monetary Board earlier this month resumed its easing cycle with a 25-basis-point (bp) rate cut, bringing the key rate to 5.5%.

The central bank had lowered rates by a total of 75 bps in 2024. At its first rate-setting meeting this year, it opted for a pause as it waited to see how global trade uncertainties would unfold.

BSP Governor Eli M. Remolona, Jr. has signaled further rate reductions this year as the benchmark is still “slightly restrictive.” Rate cuts will likely be delivered in “baby steps” or in 25-bp increments, he said.

Mr. Paracuelles also noted the central bank’s other policy tools such as further cuts in the reserve requirement ratio (RRR).

On March 28, the RRR of universal and commercial banks and nonbank financial institutions with quasi-banking functions was reduced by 200 bps to 5% from the current 7%.

The RRR for digital banks was also lowered by 150 bps to 2.5%, while the ratio for thrift lenders was cut by 100 bps to 0%.

Rural and cooperative banks’ RRR has been at zero since October, the last time the BSP cut reserve requirements.

“What that (RRR cut) does is provide a lot of liquidity into the banking system. And as a result, the policy transmission of the rate cuts that are about to come or already have happened become a bit more effective than otherwise would have been the case in the past cycle.”

Meanwhile, Nomura is also sticking to its 5.9% gross domestic product (GDP) forecast this year but flagged heightened uncertainties. This is below the government’s 6-8% growth target for 2025.

“I’d say at the moment, that’s still a reasonable forecast. But of course, we’re noting that uncertainty remains very high, especially on the global trade tensions and US tariff policy,” Mr. Paracuelles said.

“Obviously, that would put the balance of risk to the downside in terms of our growth projections. But the Philippines, in terms of the exposure to external demand is relatively low,” he added.

The Philippines was slapped with a 17% reciprocal tariff, the second lowest in Southeast Asia, after Singapore’s baseline rate of 10%.

“The bigger factor there is really in terms of how much we think the domestic growth engines could fire up and provide some offset to a potential decline in exports… those things are still very much intact, regardless of what’s happened with the tariffs.”

Easing inflation will also provide support to household spending and purchasing power.

“I think domestic demand will become the bigger driver here from a growth standpoint this year,” he added.

First-quarter GDP data will be released on May 8.

In 2024, the economy grew by a revised 5.7% but still short of the government’s 6-6.5% target. — Luisa Maria Jacinta C. Jocson

Building material costs likely to remain steady

Workers were seen at a construction site in Manila. — PHILIPPINE STAR/EDD GUMBAN

By Beatriz Marie D. Cruz, Reporter

THE COST of building materials is likely to remain steady this year amid government demand and slowing inflation, although geopolitical uncertainties may cause price volatility, according to construction company executives.

“Based on the current market situation, we see a steady trend in prices, with partial bias for marginal increases due to demand coming from government infrastructure projects as well as the rollout of economic and socialized housing projects,” Megawide Construction Corp. said in an e-mail to BusinessWorld.

Jason C. Valderrama, president and chief executive officer  at construction firm JCV & Associates, said prices of construction materials are expected to remain stable amid cooling inflation and easing interest rates.

“The inflation rate has been the lowest in the last five years and the construction materials wholesale price index moves in lock step with it, so prices of construction materials will be stable this year,” he said in an e-mail.

In the first three months of the year, the wholesale price growth of construction materials in Metro Manila averaged 0.1%, lower than 1.1% a year ago, latest data from the Philippine Statistics Authority showed.

Headline inflation averaged 2.2% in the January-to-March period, within the central bank’s 2-4% target.

Mr. Valderrama said the resumption of the Bangko Sentral ng Pilipinas’ (BSP) easing cycle would further temper inflation and stabilize construction material prices.

The BSP on April 10 cut rates by 25 basis points, bringing its key policy rate to 5.5%. BSP Governor Eli M. Remolona, Jr. said further rate cuts will likely be delivered in “baby steps” or in 25-bp increments.

“The Philippines is always reliant on developments in the global commodity markets like oil, steel products and China’s economic situation/trends, and basic construction materials like cement, pipes and lumber may be very volatile,” Aboitiz Construction Vice-President for Strategic Asset and Supply Chain Management Eric King said in an e-mail to BusinessWorld.

However, the price and supply of raw steel are expected to remain steady through 2025, he said.

“We anticipate that this will result in a stable availability and unchanged base cost of our steel base materials, including steel fibers, dowel cradles, armor joints, gabions, and other double-twist items.”

The expected slowdown of global oil prices would also stabilize the cost of energy intensive materials like steel and cement, according to Megawide Construction.

“As of the latest forecasts, oil prices are expected to slow down on account of higher output coupled with reduced demand,” Megawide Construction said.

The Organization of the Petroleum Exporting Countries on April 14 reduced its 2025 global oil demand growth forecast as the United States’ tariff policy has dampened economic activity, Reuters reported.

“This scenario, however, can change depending on the intensity of the ongoing trade war triggered by US policy directions,” Megawide said.

IMPACT OF TRADE WAR
However, the US tariff policy as well as ongoing conflicts in the Middle East could still hurt global supply chains, affecting the cost of building materials.

“If the current state of tensions in Europe, the Middle East and Asia worsens, shipping routes may be affected and cause higher transport and landed costs. In addition, the trade war could disrupt traditional sourcing channels and impact pricing, which should also be reflected in prices,” the company said.

US President Donald J. Trump on April 9 announced a 90-day suspension of reciprocal tariffs with its trading partners except China, although the baseline 10% tariff on most US imports remained in effect.

Philippine exports were imposed a 17% reciprocal tariff by the US, the second- lowest among Southeast Asian countries.

Cebu Landmasters, Inc. Chief Operating Officer Jose Franco B. Soberano said the company is still seeing “very favorable” steel prices and stable cement prices amid tariff pressures.

“It might even be beneficial to us because there will be more supply coming to our region… We will get more competitive and aggressive pricing from Southeast Asia or Asian countries that supply construction materials to us. Costs have gone up in the last three years due to the supply chain disruptions and the pandemic, but it’s become more stable now,” Mr. Soberano said in an interview aired on Money Talks with Cathy Yang on One News last week.

However, Mr. Soberano said that while the company is taking advantage of pricing opportunities, it is “not locking in anything beyond three or six months.”

Mr. Valderrama said he expects muted US demand for construction materials from China and other countries due to the trade war. He noted these countries will look to send more of their products to other export markets such as the Philippines.

“There will be a lot of available supply from China when it comes to steel, so if there is nowhere to go because of the tariff issue, then the tendency is there will be supply available [for the Philippines],” PHINMA Corp. Director and Executive Vice-President for the Construction Materials Group Eduardo A. Sahagun said via telephone.

To navigate unexpected changes in the market, Mr. King said Philippine companies should foster strong relationships with its business partners and suppliers.

“In some advanced organizations and industries, they have started to use data and AI-powered tools to help them find better prices and manage their inventory more efficiently,” he said.

PSE IPO target unlikely amid uncertainties due to tariffs — analysts

BW FILE PHOTO

By Revin Mikhael D. Ochave, Reporter

THE PHILIPPINE Stock Exchange’s (PSE) target of six initial public offerings (IPOs) this year may no longer be achievable due to uncertainties related to US tariffs, according to analysts.

“Until we see more consistency between President Donald J. Trump’s trade statements and actual policy direction, investor sentiment may remain cautious — making it more important for upcoming IPOs to be timed carefully and backed by strong fundamentals,” DragonFi Securities, Inc. Equity Research Analyst Jarrod Leighton M. Tin said in a Viber message on Wednesday.

“We’ve seen how market volatility can derail IPOs, with Mr. Trump’s unpredictable tariff policies shaking global equity markets… This kind of bearish sentiment makes it harder for IPOs to gain traction,” he added.

AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said that the ongoing trade war has increased the likelihood of an economic slowdown, weakening investors’ risk appetite.

“With markets being as weak as they are, GCash is likely thinking that they won’t be able to get valuations acceptable to existing shareholders. Since they have no immediate need for funds, it would be better for them to wait for better conditions before going public,” he said.

“We thought that the six-IPO target was a long shot even before the trade war, so it’s even more unattainable now. Our most optimistic IPO estimate is four, and only Maynilad will be big,” he added.

Electronic wallet giant GCash recently hinted at possible delays in its planned public listing, citing the Trump administration’s tariffs.

Globe Chief Financial Officer Juan Carlo C. Puno said on Tuesday that the new US tariffs have added a lot of uncertainty. Despite this, he said that GCash’s market debut would likely happen either this year or next year.

“I think this uncertainty does not stop us from preparing. The goal is to get GCash to a point where we are push-button ready. So, when the market opens up, if we find the window where the valuations and interest we’re getting are appropriate and acceptable, we will push that button for the IPO,” Mr. Puno said.

Globe has a 36% stake in Globe Fintech Innovations, Inc. (Mynt), which owns GCash operator G-Xchange, Inc.

Mr. Trump recently announced his “Liberation Day” tariffs, which include a 10% duty on goods from all countries. The Philippines is subject to a 17% tariff on its exports to the US, though these, along with most reciprocal tariffs, have been suspended for 90 days.

The PSE saw its first public listing on April 8 with the P732.6-billion IPO of Cebu-based fuel retailer Top Line Business Development Corp.

Mr. Garcia said that the risk appetite among investors is not there yet despite positive local factors such as slower inflation and easing policy rates.

“Valuations are still at levels not seen since the Global Financial Crisis of 2008, so it’s unlikely that the market will have appetite for high valuations. Companies, on the other hand, are unlikely to accept low valuations for their IPO,” he said.

Philippine inflation eased to 1.8% in March from 2.1% in February, the lowest in 58 months or since the 1.6% logged in May 2020.

The local central bank recently reduced borrowing costs by 25 basis points despite a more challenging external environment.

China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message that the risk of economic slowdown caused by the Trump administration’s tariffs would have a negative impact on corporate earnings and valuations.

“Elevated uncertainty around US economic policy has also introduced significant volatility in global financial markets, so that has made some foreign investors more cautious about committing to IPOs in Southeast Asian emerging markets,” he said.

Despite uncertainties, Unicapital Securities, Inc. Equity Research Analyst Peter Louise D.C. Garnace said that the P49-billion IPO of Pangilinan-led water provider Maynilad Water Services, Inc. is still expected to proceed.

“We believe that the water sector is relatively insulated from global trade tensions as growth is domestically driven. On top of this, Maynilad’s IPO has a higher likelihood of pushing through, as the water concessionaire is legally required to list by 2027,” he said in a Viber message.

Mr. Colet said that Maynilad is still on track to have a “successful IPO” despite the uncertainties.

“They are a defensive stock and dividend play, so that would draw a lot of investor interest,” he said.

The offer period of Maynilad’s IPO will be from June 25 to July 2, with a July 10 listing date, based on its prospectus dated March 14.

Signed into law on Dec. 10, 2021, Republic Act No. 11600 granted Maynilad a 25-year legislative franchise until 2047 to establish, operate, and maintain a waterworks system and sewerage and sanitation services in the West Zone service area of Metro Manila and Cavite province.

The law also requires Maynilad to offer at least 30% of its outstanding capital stock within five years from the grant of the franchise.

ICTSI: Trump tariffs pose little risk, Mexico terminal vulnerable

ICTSI.COM

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) said its operations are unlikely to be affected by new US tariffs, but its Mexico operations may face market impact.

“It is too early to tell the impact since Trump’s flip-flopping every day. It is also too early to tell how these tariffs will settle; our operations are very diverse,” ICTSI Chairman and President Enrique K. Razon, Jr. said during the company’s annual stockholders’ meeting on Thursday.

“The only major impact that could be possible would be at the Manzanillo terminal (in Mexico),” he added.

Mr. Trump has disrupted the global trade system with his “Liberation Day” tariffs, including a 10% duty on goods from all countries.

The Philippines has been hit with a 17% tariff on its exports to the US, but these, along with most reciprocal tariffs, have been suspended for 90 days.

ICTSI operates 33 terminals in 20 countries across six continents. The company has operations in Mexico through Contecon Manzanillo (CMSA).

“There could be an impact (on the Mexico terminal), but so far it is a wait-and-see. Out of our portfolio, trade with the US is only 3%,” he said, noting that if the company’s Mexico operations were affected, this could still be mitigated by other markets.

“Massive industrial installed capacity in China means they will be looking for other markets. So, one market offsets another.”

In 2024, the listed port operator saw its attributable net income surge by 66.1% to $849.8 million from $511.53 million a year earlier, driven mainly by its operations in Asia.

Gross revenues for the period rose by 14.6% to $2.74 billion from $2.39 billion in 2023.

Breaking down the company’s revenue growth, its operations in Asia accounted for the largest share, generating $1.14 billion in 2024, up by 9.6% from $1.04 billion in 2023.

Revenues from its operations in the Americas reached $1.08 billion, up by 26% from $855.62 million in 2023, while revenues from Europe, the Middle East, and Africa (EMEA) totaled $521.02 million, an increase of 6.3% from $490.28 million. — Ashley Erika O. Jose

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