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UN Security Council meets on Iran as Russia, China push for a ceasefire

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 – The U.N. Security Council met on Sunday to discuss U.S. strikes on Iran’s nuclear sites as Russia, China and Pakistan proposed the 15-member body adopt a resolution calling for an immediate and unconditional ceasefire in the Middle East.

“The bombing of Iranian nuclear facilities by the United States marks a perilous turn,” U.N. Secretary-General Antonio Guterres told the Security Council on Sunday. “We must act – immediately and decisively – to halt the fighting and return to serious, sustained negotiations on the Iran nuclear program.”

The world awaited Iran’s response on Sunday after President Donald Trump said the U.S. had “obliterated” Tehran’s key nuclear sites, joining Israel in the biggest Western military action against the Islamic Republic since its 1979 revolution.

Russia and China condemned the U.S. strikes.

“Peace in the Middle East cannot be achieved by the use of force,” said China’s U.N. Ambassador Fu Cong. “Diplomatic means to address the Iranian nuclear issue haven’t been exhausted, and there’s still hope for a peaceful solution.”

But acting U.S. Ambassador to the U.N. Dorothy Shea told the council the time had come for Washington to act decisively, urging the Security Council to call upon Iran to end its effort to eradicate Israel and terminate its drive for nuclear weapons.

“Iran long obfuscated its nuclear weapons program and stonewalled our good-faith efforts in recent negotiations,” she said. “The Iranian regime cannot have a nuclear weapon.”

Russia’s U.N. Ambassador Vassily Nebenzia recalled former U.S. Secretary of State Colin Powell making the case at the U.N. Security Council in 2003 that Iraqi President Saddam Hussein constituted an imminent danger to the world because of the country’s stockpiles of chemical and biological weapons.

“Again we’re being asked to believe the U.S.’s fairy tales, to once again inflict suffering on millions of people living in the Middle East. This cements our conviction that history has taught our U.S. colleagues nothing,” he said.

 

COST OF INACTION ‘CATASTROPHIC’

Iran requested the U.N. Security Council meeting on Sunday.

Iran’s U.N. Ambassador Amir Saeid Iravani accused Israel and the U.S. of destroying diplomacy, said all U.S. allegations are unfounded and that the nuclear non-proliferation treaty “has been manipulated into a political weapon.”

“Instead of guaranteeing parties’ legitimate rights to peaceful nuclear energy, it has been exploited as a pretext for aggression and unlawful action that jeopardize the supreme interests of my country,” Mr. Iravani told the council.

Israel’s U.N. Ambassador Danny Danon praised the U.S. for taking action against Iran, saying: “This is what the last line of defense looks like when every other line has failed.” He accused Iran of using negotiations over its nuclear program as camouflage to buy time to build missiles and enrich uranium.

“The cost of inaction would have been catastrophic. A nuclear Iran would have been a death sentence just as much for you as it would have been for us,” he told the council.

It was not immediately clear when the council could vote on the draft resolution. Russia, China and Pakistan have asked council members to share their comments by Monday evening. A resolution needs at least nine votes in favor and no vetoes by the U.S., France, Britain, Russia or China to pass.

The U.S. is likely to oppose the draft resolution, seen by Reuters, which also condemns attacks on Iran’s nuclear sites and facilities. The text does not name the United States or Israel.

Military action alone cannot bring a durable solution to concerns about Iran’s nuclear program,” Britain’s U.N. Ambassador Barbara Woodward told the council. “We urge Iran now to show restraint, and we urge all parties to return to the negotiating table and find a diplomatic solution which stops further escalation and brings this crisis to an end.”

U.N. nuclear watchdog chief Rafael Grossi said that while craters were visible at Iran’s enrichment site buried into a mountain at Fordow, “no one – including the IAEA – is in a position to assess the underground damage.”

Mr. Grossi told the Security Council that entrances to tunnels used for the storage of enriched material appear to have been hit at Iran’s sprawling Isfahan nuclear complex, while the fuel enrichment plant at Natanz has been struck again.

“Iran has informed the IAEA there has been no increase in off-site radiation levels at all three sites,” said Mr. Grossi, who heads the International Atomic Energy Agency.

Britain to cut companies’ energy bills in new industrial strategy

MACROVECTOR-FREEPIK

 – Britain will aim to cut the electricity bills of thousands of companies under a new industrial strategy to be published on Monday, heeding calls from business to lower high energy costs that they say have damaged competitiveness and hindered growth.

Under an industrial strategy for the decade 2025-2035, the government plans to cut the bills of electricity-intensive manufacturers by up to 25% from 2027, a move it said could benefit more than 7,000 businesses.

The government has made boosting Britain’s anemic growth a key priority. But lawmakers and business leaders had highlighted the sky-high energy costs many companies face as a hindrance to that aim, with industry body Make UK saying government should scrap climate levies imposed on firms.

Britain has been under pressure to do more to support its key industries and bolster competitiveness as the United States and the European Union also seek to do likewise, in a trade landscape upended by U.S. President Donald Trump’s tariffs.

Alongside the strategy, five sectoral plans for areas such as advanced manufacturing, creative industries and clean energy are also set to be published. The Industrial Strategy focuses on eight previously identified sectors of strength for Britain, which also include defense and financial services.

The government said it would exempt energy-intensive manufacturers from levies like the Renewables Obligation to boost their international competitiveness.

“Tackling energy costs and fixing skills has been the single biggest ask of us from businesses and the greatest challenge they have faced – this government has listened,” Business Secretary Jonathan Reynolds said in a statement.

The government said the energy measures would be funded through reforms to the energy system, without raising household bills or taxes. The scope and eligibility for the scheme will be finalized after a consultation.

Make UK said the industrial strategy was a “giant and much needed step forward” that also tackled a skills shortage in Britain’s workforce and access to capital. The Confederation of British Industry said it was an “unambiguous, positive signal” that would provide a “bedrock for growth”

The industrial strategy, Britain’s first in eight years, will expand the state-owned British Business Bank’s capacity to channel investment into smaller companies, and provide an extra 1.2 billion pounds ($1.61 billion) a year on skills by 2028-29.

The government added it would cut regulatory burdens on businesses, spend more on research and development and speed up planning processes. – Reuters

Musk says Tesla launching robotaxis today in Austin

STOCK PHOTO | Image by Blomst from Pixabay

 – After driverless Tesla Model Ys were spotted traversing Austin, Texas streets on Sunday morning, CEO Elon Musk posted on his social platform X that Tesla’s “robotaxi launch” would start this afternoon with rides for a flat fee of $4.20.

A Reuters witness saw several Tesla “robotaxis” on Sunday morning in a popular area of the Texas capital called South Congress with no one in the driver’s seat but one person in the passenger seat.

Tesla planned to have front-seat riders acting as “safety monitors,” though it remained unclear how much control they would have over the vehicles. Videos of driverless Teslas have also been posted on social media but it was not known if the vehicles carried any passengers.

As the date of the planned robotaxi launch approached, Texas lawmakers moved to enact rules on autonomous vehicles in the state. Texas Governor Greg Abbott, a Republican, on Friday signed legislation requiring a state permit to operate self-driving vehicles.

The law does not take effect until September 1, but the governor’s approval of it on Friday signals state officials from both parties want the driverless-vehicle industry to proceed cautiously. A group of Democratic state lawmakers earlier this week asked Tesla to delay its planned robotaxi trial because of the legislation.

Tesla did not respond to requests for comment. The governor’s office declined to comment.

The law softens the state’s previous anti-regulation stance on autonomous vehicles. A 2017 Texas law specifically prohibited cities from regulating self-driving cars.

In recent days, Tesla has sent invites to a select group of Tesla online influencers for a small and carefully monitored robotaxi trial, which the company has said would include 10 or 20 Model Y vehicles operated in a limited zone of Austin.

The law requires autonomous-vehicle operators to get approval from the Texas Department of Motor Vehicles before operating on public streets without a human driver. It also gives state authorities the power to revoke permits if they deem a driverless vehicle “endangers the public,” and requires firms to provide information on how police and first responders can deal with their driverless vehicles in emergency situations.

The law’s requirements for getting a state permit to operate an “automated motor vehicle” are not particularly onerous but require a firm to attest it can safely operate within the law.

It defines an automated vehicle as having at least “Level 4” autonomous-driving capability under a recognized standard, meaning it can drive itself with no human driver under specified conditions, such as within a limited area.

Level 5 autonomy is the top level and means a car can drive itself anywhere, under any conditions.

Compliance remains far easier than in some states, most notably California, which requires extensive submission of vehicle-testing data under state oversight.

 

MUSK’S SAFETY PLEDGES

The Tesla robotaxi launch, which the company warned might be delayed, comes after more than a decade of CEO Elon Musk’s unfulfilled promises to deliver self-driving Teslas.

Most of Tesla’s sky-high stock value now rests on its ability to deliver robotaxis and humanoid robots, according to many industry analysts. Tesla is by far the world’s most valuable automaker.

Mr. Musk has said Tesla would be “super paranoid” about safety for the Austin rollout. The company planned to operate only in areas it considered the safest.

The service in Austin will have other restrictions as well. Tesla plans to avoid bad weather, difficult intersections, and will not carry anyone below the age of 18. Musk has said he is ready to delay the start for safety reasons, if needed.

The planned launch has generated buzz among Tesla fans.

“Wow. We are going to ride in driverless Teslas in just a few days. On public roads,” posted Omar Qazi, who has 635,200 followers on X, writes often about Tesla using the handle @WholeMarsBlog, and received an invite.

Commercializing autonomous vehicles has been risky and expensive. GM’s Cruise was shut down after a serious accident and regulators are closely watching Tesla and its rivals, Alphabet’s Waymo, which runs a paid robotaxi service in several U.S. cities, and Amazon’s Zoox.

Tesla is also bucking the young industry’s standard practice of relying on multiple technologies to read the road, using only cameras. That, Mr. Musk says, will be safe and much less expensive than lidar and radar systems added by rivals. – Reuters

BusinessWorld, WorkL to identify PHL’s ‘Best Places to Work’ in 2025

Companies across the Philippines are preparing their submissions for BusinessWorld’s Best Places to Work 2025 awards as the entry deadline of Aug. 1 draws near.

The nationwide search, run in partnership with workplace data firm WorkL, seeks to recognize the happiest and most employee-satisfied workplaces in the country. It also aims to spotlight organizations that promote positive work culture and help businesses gain a competitive edge in attracting and keeping workers.

Backed by WorkL’s analytics, the awards are not based solely on surface-level perks. Instead, the process looks into real indicators of happiness at work and measurable employee feedback.

Insights on employee engagement

Businesses looking to improve workplace satisfaction and reduce employee turnover now have the opportunity to participate in BusinessWorld and WorkL’s data-driven initiative built around employee feedback.

Companies that take part in the initiative will be benchmarked against both industry-specific and global employee engagement data. This helps provide context and allows firms to compare their performance with competitors.

A 31-question survey based on its Six Steps to Workplace Happiness model is developed with input from behavioral scientists, psychologists, data analysts, and industry professionals. The result provides participating companies with comprehensive insight into the current state of employee engagement.

Participating firms will discover their Flight Risk score, a measure indicating how likely an employee is to leave the organization within the next nine months. Alongside this, companies will receive other key indicators such as the overall engagement score, Confidence in Management rating, Diversity and Inclusion Indicator, and the Net Promoter Score.

For businesses that choose the enhanced package, additional data tools will be made available. These include instant action plans, heatmaps, and demographic breakdowns, all aimed at helping management pinpoint and address specific workplace issues. Reward and Recognition, one of the areas in the survey, helps identify employee morale and minimizing attrition.

Aside from these perks, firms that submit their entries will receive a free digital subscription to BusinessWorld.

Workplaces that receive high ratings in employee satisfaction will be featured in the official BusinessWorld list to be released later this year. Recognition on this list is expected to improve recruitment outcomes by drawing interest from job seekers and strengthen engagement among existing employees who take pride in working for an acknowledged employer.

Going beyond for employees

With employee satisfaction as the key metric, Best Places to Work 2025 is in search of companies that go beyond for their employees, making sure employees stay motivated and stay longer.

For instance, a growing number of businesses are found to be adjusting leadership training to focus more on empathy and active listening. Managers are being trained to pay attention to their team members, listen carefully, and make fair decisions. 

More workplaces are also celebrating culture, which can be seen through office events, partnerships with local communities, and support for charity drives. These actions give employees a chance to connect with each other and with people outside of their office. For many, this helps build a sense of pride in where they work.

Clear communication is still becoming a top priority. Many teams today include people from different cultural backgrounds and nationalities, which makes understanding each other more important. Companies nowadays are adjusting their communication methods to be more inclusive and easier to understand across languages and cultures.

According to WorkL, companies that do well often have open communication lines and encourage collaboration. When staff members feel supported not just in their tasks, but in their lives outside work, they are more likely to stay.

Work-life balance continues to be a big concern. Businesses are addressing this by giving employees more flexibility. Many offer hybrid schedules, remote work options, or even shorter workweeks. Such choices give workers more control over their time and allow them to handle personal matters more easily.

Support systems are also improving in modern workplaces. Companies are expanding Employee Assistance Programs (EAPs) and providing mental health services, including counseling, support hotlines, and stress management resources. In some offices, support is extended to parents and caregivers, helping them manage their responsibilities at home.

The best companies also look after their employees beyond the office setting. They offer strong health and financial benefits, such as medical insurance, wellness programs, and mental health support. Some even provide financial education, housing aid, tuition help, and exclusive employee discounts.

Career development is another major area where top companies shine. Firms that received praise last year had structured learning paths for employees through training programs, mentorships, and upskilling opportunities that match workers’ goals. Some even encourage people to take on new roles within the same company, helping them grow without needing to leave.

Meanwhile, businesses aiming to keep employees satisfied usually provide competitive salaries and bonuses based on performance. Many also offer financial tools and benefits that help workers manage their money better and prepare for the future.

However, reports show that companies recognized for employee satisfaction go beyond basic pay. They invest in programs that allow employees to get help easily, without jumping through complicated steps. The focus is clearly on keeping workers supported and less stressed, both mentally and financially.

For many business leaders, applying for workplace awards forces them to reflect on how they treat their teams. Some even use the process as a reason to make immediate improvements. Others treat it as a chance to collect feedback and make smarter decisions about how to improve their culture.

BusinessWorld and WorkL emphasizes that the awards are not just about perks, but about creating lasting systems of respect, inclusion, and fairness. Firms that lead in this area tend to maintain a positive feedback loop that further builds an even stronger workplace culture.

Interested companies can find more information at https://www.bworldonline.com/bwbestplacestowork/. Results of the inaugural Best Places to Work list are expected to be released before the end of the year.

 


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Philippines accuses China coast guard of aggressive maneuvers against its fisheries vessels

The Philippine Coast Guard (PCG) deployed two PCG vessels and an aircraft in response to reports of illegal swarming by Chinese Maritime Militia (CMM) in Rozul Reef on June 20, 2025. — PHILIPPINE COAST GUARD

MANILA – The Philippines accused Chinese Coast Guard ships on Friday of carrying out aggressive maneuvers and targeting its fisheries vessels with water canons while they were delivering supplies to Filipino fishermen at the disputed Scarborough Shoal on Friday.

One of the four Philippine fisheries vessels involved in the mission was briefly struck by a water cannon, while another evaded being hit, the Philippine Coast Guard said in a statement. — Reuters

One-Take Multimedia, Inc. notifies shareholders and directors of its dissolution

 


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Analysts split on BSP easing path

BW FILE PHOTO

ANALYSTS are divided on the Philippine central bank’s easing trajectory for the rest of 2025, as an escalating conflict in the Middle East and oil price spike clouds the inflation outlook.

“We still see room for further policy easing to support economic momentum, and expect another rate cut of 25 basis points (bps) by the end of the year,” Moody’s Analytics economist Sarah Tan said in an e-mail.

“Policy easing will continue into 2026 as well. Monetary easing would support the domestic economy amid a complex external environment,” she added.

The Bangko Sentral ng Pilipinas (BSP) on Thursday cut the target reverse repurchase rate by 25 bps to 5.25% from 5.5% amid a moderating inflation outlook and weaker-than-expected first-quarter economic growth.

BSP Governor Eli M. Remolona, Jr. said on Friday that a rate cut in August was on the table depending on the data and a further escalation in the Middle East conflict.

“We could do another rate cut in August or we could pause and do the rate cut in October instead of August. That’s one possibility. But we’re looking at the data every day and we’re going to decide in August what the next move should be,” he said in an interview with CNBC.

The Monetary Board’s remaining policy meetings this year are scheduled for Aug. 28, Oct. 9, and Dec. 11.

Deutsche Bank Research also expects the BSP to cut by 25 bps in August.

“Our baseline for one more 25-bp rate cut in August remains, as we think that annual inflation is likely to stay near the lower end of BSP’s 2-4% target barring an escalation in the Middle East conflict,” it said in a note.

Ms. Tan said the BSP’s policy outlook has turned “slightly gloomier” due to the escalating conflict in the Middle East and uncertainties arising from the Trump administration’s trade policies.

“Political volatility across key oil-producing nations leaves the market vulnerable to sudden shocks. This could fuel higher global oil prices, which is concerning for the Philippines due to its heavy reliance on imported oil. This could add upward price pressures in the domestic economy and risks depreciation of the peso,” she said.

However, Moody’s Analytics does not see inflation breaching the central bank’s 2-4% target this year. The BSP expects inflation to average 1.6% this year, 3.4% in 2026 and 3.3% in 2027.

On the other hand, ANZ Research and Nomura Global Markets Research said the BSP may deliver two more rate cuts this year.

“Given the BSP’s inflation forecast of 1.6% for 2025, a terminal rate of 5% would imply that real rate would still remain elevated at 3.4%. Consequently, we think the BSP will have to cut rates two more times by 25 bps each in Q3 and Q4 2025 bringing the terminal rate to 4.75%,” ANZ Research said.

Nomura Global Markets Research said it expects two 25-bp cuts at the BSP’s August and October meetings “mainly supported by the low inflation outturns in coming months.”

However, the main risk to its view is the timing of these next cuts, Nomura said.

“An escalation in the Middle East conflict that is accompanied by further increases in oil prices could keep BSP from cutting and instead prompt it to leave the policy rate unchanged in the near term,” it said.

“The BSP also highlighted in the policy statement today that the Monetary Board will continue to assess the impact of prior monetary policy adjustments, which in our view suggests BSP could pause, if the domestic economy shows signs of improvement in the short run,” Nomura added.

Bank of the Philippine Islands (BPI) Lead Economist Emilio S. Neri, Jr. said in a June 19 report that while a rate cut was still possible this year, as the central bank should remain cautious as an overly aggressive easing cycle could leave the economy vulnerable to abrupt rate hikes by the US Federal Reserve.

He added the Monetary Board’s easing cycle could be disrupted if the conflict in the Middle East escalates further.

“Containing inflation should remain the top priority, since high inflation has been the main reason for the slowdown in GDP growth — more so than the current level of interest rates. Keeping inflation stable, even without additional cuts, will likely boost the economy. A resurgence in inflation, even with the rate cuts, could hold back growth again,” Mr. Neri said.

PAUSE
Meanwhile, some analysts said the BSP may pause its easing cycle for the rest of the year.

“Developments in commodity markets, global demand and trade tensions are at this point the biggest risk factors for inflation and therefore the BSP’s easing path,” Fitch Ratings’ Asia-Pacific Sovereigns Director Krisjanis Krustins said in an e-mail.

Mr. Krustins said he does not expect any more rate cuts by the BSP this year. He said the BSP will likely resume easing with a 25-bp cut in 2026, bringing the rate to 5%.

“This would imply a relatively small differential between the Philippines and the US in terms of policy rates, compared to history,” he said.

Mr. Remolona on Friday said the interest rate differential between the Fed and the BSP could narrow to 50 bps.

Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the BSP will likely pause at its Aug. 28 meeting as the central bank will first assess the effect of its cumulative rate cuts in addition to the reduction of banks’ reserved requirement ratio (RRR).

“We reckon this evaluation will focus on transmission lags and the current high real interest rate environment to determine whether further easing is warranted,” he said.

The BSP on March 28 cut the RRR of universal and commercial banks and nonbank financial institutions with quasi-banking functions by 200 bps to 5%. 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%.

Mr. Asuncion said the BSP could cut the target reverse repurchase rate up to 3% to 3.5% eventually before pausing, aligning with pre-pandemic levels and the central bank’s inflation target. — A.M.C. Sy

Oil prices seen to spike after US strikes on Iran

MOTORISTS lineup at a gas station in Tondo, Manila. — PHILIPPINE STAR/RYAN BALDEMOR

By Sheldeen Joy Talavera and Aubrey Rose A. Inosante, Reporters

GLOBAL OIL PRICES are expected to soar amid a widening conflict in the Middle East after the US attacked Iranian nuclear sites.

“World oil prices could rise further because of the new development. The potential increase in premium and freight, which are projected to rise because of the expanded scope of hostilities, could be factored in the expected movement on domestic prices next week,” Jetti Petroleum, Inc. President Leo P. Bellas said in a Viber message.

The impact of the potential increase in freight would be determined “as soon as trading commences early (Monday) morning,” Mr. Bellas said.

As of June 21, diesel is projected to go up by P4.90 to P5.10 per liter; and gasoline by P3.20 to P3.40 per liter, an industry player said.

If realized, this would be the sixth consecutive week of price hike for gasoline and four straight weeks for diesel.

The US launched airstrikes on three nuclear sites in Iran, US President Donald J. Trump said late on Saturday, saying these facilities “have been completely and totally obliterated,” Reuters reported. (Related story Strikes on Iran’s nuclear sites mark Trump’s riskiest foreign policy gamble”).

Mr. Bellas said that industry players are set to meet with the Department of Energy (DoE) on Monday to look for ways to cushion the impact of the looming big-time price hike.

He said that the meeting aims “to discuss the implementation of the price increase (this week) on staggered basis, promos and discount offerings of stations to help mitigate the impact of the price increase, among other things.”

Before the US attack on Saturday, analysts at Oxford Economics modeled three scenarios, including a de-escalation of the conflict, a complete shutdown in Iranian oil production and a closure of the Strait of Hormuz, “each with increasingly large impacts on global oil prices,” Reuters reported.

In the most severe case, global oil prices jump to around $130 per barrel, driving US inflation near 6% by the end of this year, Oxford said in the note.

“Although the price shock inevitably dampens consumer spending because of the hit to real incomes, the scale of the rise in inflation and concerns about the potential for second-round inflation effects likely ruin any chance of rate cuts in the US this year,” Oxford said in the note, which was published before the US strikes.

In comments after the announcement on Saturday, Jamie Cox, managing partner at Harris Financial Group, agreed oil prices would likely spike on the initial news. But Mr. Cox said he expected prices to likely level in a few days as the attacks could lead Iran to seek a peace deal with Israel and the United States.

Rodela I. Romero, assistant director of Oil Industry Management Bureau of the Department of Energy, said on Friday that there is a “major oil price shock looming as the Israel-Iran conflict threatens critical global shipping passage.”

The DoE earlier said that the government is prepared to roll out fuel subsidies to transport operators and farmers to contain the broader impact of high fuel costs on the prices of basic goods and services.

Fuel companies in the Philippines are mandated to maintain at least a 30-day fuel inventory to help stabilize local supply. If global crude prices exceed the $80 per barrel threshold, fuel subsidies for public transport drivers and fisherfolk will be automatically triggered.

President Ferdinand R. Marcos, Jr. said last week that the government may extend fuel subsidies to sectors severely affected to a spike in oil prices.

“Fuel subsidies are the correct policy response because allowing an increase in transport fares will hit the commuting public hard and strengthen inflationary pressures. Moreover, it’s possible that these subsidies may only be temporary if the Middle East crisis passes,” Calixto V. Chikiamco, president at Manila-based Foundation for Economic Freedom, said in a Viber message.

IMPACT ON INFLATION
As oil prices rise due to the developments in the Middle East, analysts warned this could stoke inflation and dampen consumer confidence, as well as hurt remittances.

“Its economic impacts will include higher inflation risks, as the Middle East where these conflicts are happening is the main source of our country’s oil,” Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc., said in a Viber message.

“In addition, a lot of OFWs (overseas Filipino workers) are working in this region which may also negatively impact remittance inflows and of course their overall safety,” he said.

BSP Governor Eli M. Remolona, Jr. earlier warned that rising global oil prices and the weakening peso could bring inflation to 5%, breaching the 2-4% target range.

“We have a bad scenario, if I may call it that, in which our inflation rate could exceed 5%. But we hope it doesn’t happen and we’re carefully watching that,” Mr. Remolona said in an interview with Cathy Yang on One News TV on June 22.

Mr. Remolona also said the 5% inflation scenario would involve Dubai crude reaching $100 per barrel and the peso sharply depreciating.

“Our good scenario, or I would say our central scenario says, inflation will go up to around 3.4%,” he said.

Jonathan L. Ravelas, senior adviser at professional service firm Reyes Tacandong & Co. said the Middle East conflict has a minimal impact on remittances for now.

He warned the conflict may escalate further and spread to other Middle East countries where there are significant numbers of OFWs such as Saudi Arabia, the United Arab Emirates, and Qatar.

Data from the Bangko Sentral ng Pilipinas said remittances from the Middle East region stood at $1.97 billion in the first quarter, up 6.51% from the same period last year.

Juan Paolo E. Colet, managing director at China Bank Capital Corp., said that oil companies need to manage their procurement, inventory, and hedging strategies well to mitigate the impact of potential price spikes and supply disruptions.

Mr. Colet said that while the government can offer subsidies to public transportation providers to cushion the impact of higher oil prices, this can only be a short-term solution.

“Our policymakers must look beyond the current conflict in the Middle East to make our country resilient to oil shocks. That includes investing in mass transit systems, fast-tracking renewable energy and battery energy storage projects, and promoting the shift to EVs (electric vehicles),” he said in a Viber message. — with Reuters

Philippine banks’ real estate exposure sinks to 6-year low

PHILIPPINE banks’ exposure to the real estate sector fell to a six-year low at the end of March. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Aubrey Rose A. Inosante, Reporter

THE EXPOSURE of Philippine banks and trust entities to the property sector dropped to a six-year low at the end of March, data from the Bangko Sentral ng Pilipinas (BSP) reported.

Banks’ real estate exposure ratio slipped to 19.41% as of end-March from 19.75% at end-December. It was also lower than 20.31% in the same period last year.

This was also the lowest real estate exposure ratio recorded in six years or since the 19.2% at end-March 2019.

The BSP monitors lenders’ exposure to the real estate industry as part of its mandate to maintain financial stability.

Investments and loans extended by Philippine banks and trust departments to the real estate sector rose by 7.76% to P3.34 trillion as of March from P3.1 trillion in the same period in 2024.

Broken down, real estate loans increased by 9.1% to P2.97 trillion as of end-March from P2.72 trillion at end-March 2024.

Residential real estate loans increased by an annual 11% to P1.13 trillion, while commercial real estate loans also went up by an annual 7.96% to P1.83 trillion.

Past due real estate loans stood at P149.52 billion, higher by 9.3% from P136.79 billion a year prior.

Broken down, past due residential real estate loans climbed by 14.74% to P107.62 billion, while past due commercial real estate loans fell by 2.56% to P41.9 billion.

Gross nonperforming real estate loans inched up by 0.44% to P111.27 billion at end-March from P110.79 billion a year ago.

This brought the gross nonperforming real estate loan ratio to 3.75% at end-March, lower than 4.07% a year earlier.

Meanwhile, real estate investments also dipped by 1.86% to P372.4 billion as of end-March from P379.45 billion in the same period a year ago.

Debt securities increased by 1.93% year on year to P256.04 billion, while equity securities fell by 9.28% to P116.36 billion.

Joey Roi H. Bondoc, director and head of research at Colliers Philippines attributed the banks’ lower exposure ratio in the first quarter to the drop in consumer demand for housing loans.

In a phone interview, Mr. Bondoc said there have been reports that homebuyers are backing out of their loans.

“Once it enters the bank financing, [the payment] balloons to, say, quadruple, quintuple times. That’s the problem,” he said, noting that some buyers may have been attracted by the low downpayment.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said real estate developers may also be cautious in managing new supply after the exit of Philippine offshore gaming operators.

“Banks, real estate companies, investors, end-users also cautious on possible slower world and local economic conditions due to Trump’s higher tariffs/trade wars/other protectionist policies and geopolitical risks recently such as the Israel-Iran war,” Mr. Ricafort said.

Mr. Bondoc said he sees some “green shoots of recovery, but those are primarily outside of Metro Manila.”

“The horizontal house and lot projects are still good. But, again, the more expensive projects, say those in Metro Manila, including the condos, the take-up is definitely down,” he said.

Recent rate cuts by the BSP may not have been felt by consumers.

“We’ve seen these reductions already from the central bank since last year. But have we seen an impact, a positive impact, meaning reduced mortgage rates? Not yet. We have not seen that,” Mr. Bondoc said.

On Thursday, the BSP delivered a second straight 25-basis-point (bp) cut, bringing its policy rate to 5.25% amid a benign inflation outlook and slowing economic growth.

It has now reduced benchmark borrowing costs by 125 bps since it began its easing cycle in August last year.

“Our average rate, for example, five-year loans, still at 7.7%. When last year, it was 7.8%. There’s really no sizable, substantial correction or reduction in terms of these mortgage rates,” Mr. Bondoc said.

BSP Governor Eli M. Remolona, Jr. also signaled they could deliver one more 25-bp cut this year.

Philippine exports to S. Korea expected to recover in 2nd half

Imported bananas are on display at South Korea’s supermarket in Seoul, South Korea, Aug. 1, 2024. — REUTERS/MINWOO PARK

By Justine Irish D. Tabile, Reporter

PHILIPPINE EXPORTS to South Korea are expected to rebound in the second half of the year amid better economic and business conditions in Seoul, which have hindered the country from seeing increased trade under the free trade agreement (FTA).

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said that economic and political uncertainties in South Korea since December 2024 may have slowed down the country’s economic and business activities, including imports from the Philippines.

“The weaker South Korean currency (won) since late 2024 could have also made Philippine exports more expensive from South Korea’s point of view,” he said in a Viber message.

“This could also be a function of competition from other Association of Southeast Asian Nations (ASEAN) or Asian exporters such as Vietnam on exports such as bananas, among others,” he added.

Philippine Statistics Authority data showed Philippine exports to South Korea declined by 25.5% to $1 billion in the January-to-April period from $1.348 billion a year earlier. This despite the Philippine-South Korea FTA in effect for four months.

In April alone, the country exported $264.84 million worth of goods to South Korea, down 16.8% from $318.27 million in the previous year.

This made South Korea the country’s seventh-largest export market in April from being the country’s fifth-major trading partner in terms of exports in the same month last year.

“The FTA could have helped cushion the decline, at the very least, and could support future growth in Philippine exports after political and economic conditions already stabilized in South Korea recently,” Mr. Ricafort said.

“So yes, it can rebound in the second half due to better economic and business conditions in South Korea after the political and market turmoil a few months ago,” he added.

South Korea was plunged into a political crisis when then-President Yoon Suk Yeol declared martial law on Dec. 3, 2024. Earlier this month, a liberal party candidate, Lee Jae-myung, was elected president in snap elections and took office.

Meanwhile, Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said that a “modest recovery” in Philippine exports to South Korea in the second half may be gradual.

“This can be realized if Philippine exporters will accelerate FTA utilization, target niche sectors like processed food and electronic components, and strengthen supply chain readiness,” he said in a Viber message.

“With supportive policies and improved market engagement, the FTA can still deliver long-term gains,” he added.

According to Mr. Rivera, the decline in Philippine exports to South Korea despite the FTA can be attributed to short-term adjustment lags, weak global demand, and product-specific issues.

“Electronics, a key export, has seen softening demand globally, while some sectors may not yet be fully utilizing the new tariff benefits under the agreement,” he said.

“FTAs don’t yield immediate results as they require time, market readiness, and strong private sector engagement. Philippine exporters may still be aligning supply chains, complying with rules of origin, and finding Korean buyers under the new terms,” he added.

To further benefit from the FTA, the Philippines should also strengthen its participation in the Regional Comprehensive Partnership and support micro, small, and medium enterprises in compliance and market access, Mr. Rivera said.

“With the right strategies, the FTA remains a valuable platform to diversify and deepen our economic ties with South Korea,” he added.

Entered into force last year, the Philippines-South Korea FTA is seen as critical in reducing the country’s tariff disadvantage against South Korea’s other FTA partners.

In particular, the Philippine government expects the FTA to help the Philippines recover its market share in South Korea’ banana imports after losing it to its ASEAN competitors, some of which already enjoy zero tariffs.

Aside from bananas, gains were also expected in Philippine exports of machinery and transport equipment and garments.

The best shirt in the world (according to Germany)

IN 1881, German clothing brand Van Laack set out to make the world’s best shirts and suits. Have they succeeded?

On June 19, all the way from its headquarters near the Rhine, the company showed off its Spring/Summer 2025 collection (mostly sprigged cotton shirts; but also a charming evening suit in black, with a matching cummerbund) in its store at the Shangri-La Plaza Mall. More importantly, the store had Florian Ohlde, vice-president of made-to-measure sales at Van Laack, to reintroduce the brand’s made-to-measure service.

Probably its No. 1 customer here, Johnlu Koa, managing director of Van Laack in the Philippines, showed off his very own suit. He brought the brand to the Philippines in the mid-2000s, after sensing shifts in the country’s economics. “We thought that the best thing to do is equip businesspeople with the right outfits,” he said.

On a personal note, he began to patronize Van Laack after personal mishaps with his own clothes as well.

He’d have suits tailor-made in Hong Kong at affordable prices (relative to the suits he usually buys), then have them come apart in just a few washes. With another European brand (which he did not name), the suits would fit perfectly, except for his cuffs. The Philippine branches of the brand would unceremoniously shorten the cuffs, cutting off the kissing buttons — the buttons that would actually open and close on custom suit jackets’ cuffs (as opposed to the buttons on store-bought suits), thus removing the mark of exclusivity.

Mr. Koa took off his jacket, which showed his monogram and his other businesses discreetly on the lining. “When you wear it, you feel secure — in your place, in your business, in your industry,” he said. “It makes you feel secure for deals.”

Meanwhile, Mr. Ohlde, when asked about the assertion about the brand making the world’s best shirts, told us to touch his own shirt. We commented on its softness, and he said that the shirt had not been ironed. “I flew from Germany to here with a tiny bag. It’s not wrinkled.”

Their fabrics come from Italy and Switzerland, and the fine quality of the fabrics is matched with German precision in tailoring. While they have since begun manufacturing in Tunisia and Vietnam, he says, “At the end of the day, you get the best shirt and suit in the world.”

“We don’t make mistakes,” he added.

He also explained how they managed to survive since 1881: he gestured at the women’s blouses, the belts, the ties and other items in the store that were not shirts or suits. They’ve even added home linens to their portfolio. “We make bedsheets with the best fabrics in the world (which) you normally wear on your skin.”

Van Laack in the Philippines is located at 3rd Level Main Wing, Shangri-La Plaza, Mandaluyong. Book an appointment or find out more about the new collections by contacting 0917-8194814. — Joseph L. Garcia

Vivant eyes P10-B water infra push through 2030

VIVANT.COM.PH

CEBU-BASED energy and water conglomerate Vivant Corp. said it plans to invest around P10 billion over the next six years to expand its water infrastructure portfolio.

“As we deepen our presence in the water sector, we are identifying opportunities that match both our capabilities and our commitment to progress,” Vivant Chief Executive Officer Arlo G. Sarmiento told shareholders last week.

“If conditions align and projects proceed as anticipated, we are looking at allocating around P10 billion over the next six years for investments in water infrastructure, spanning bulk water supply, wastewater treatment, and distribution in areas where access remains constrained,” he added.

Among the projects in the company’s pipeline is a P2-billion utility-scale seawater desalination plant in Cordova, Cebu, which is expected to produce up to 20 million liters per day of potable water in its first phase — enough to meet the average daily consumption of 20,000 households.

The company said testing and commissioning of the plant are currently underway, with commercial operations expected by the second half of the year.

Vivant Hydrocore Holdings, Inc. (Vivant Water), a subsidiary of Vivant, signed a 25-year joint venture agreement with the Metropolitan Cebu Water District to supply potable water from the desalination plant.

“This marks the Philippines’ first utility-scale seawater desalination facility, an innovative, scalable solution to help Metro Cebu bridge its water deficit and build resilience amid growing demand and climate pressures,” Mr. Sarmiento said.

Vivant Water President Jess Anthony Garcia said the company is actively exploring areas within Cebu where water access remains limited or service quality requires improvement.

“Our evaluation considers projected demand growth, infrastructure gaps, and the financial viability of long-term operations,” he said.

Meanwhile, Mr. Sarmiento said the wastewater treatment facility in Puerto Princesa, Palawan — which processes 2,000 cubic meters of sewage and 70 cubic meters of seepage wastewater per day — remains fully compliant and consistently operational.

Vivant has investments in companies engaged in electric power generation and distribution, as well as in the retail electricity supply business. It has also entered the water sector with a diversified portfolio that includes bulk water supply, wastewater treatment, and water distribution. — Sheldeen Joy Talavera