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Peso to move sideways vs dollar before next tariff announcement

BW FILE PHOTO

THE PESO may continue to move sideways against the dollar this week as investors await the details on the Trump administration’s planned retaliatory tariffs.

The local unit closed at P57.381 per dollar on Friday, inching down by 1.1 centavos from its P57.37 finish on Thursday, Bankers Association of the Philippines data showed.

Week on week, the peso dropped by 5.1 centavos from its P57.33 finish on March 21.

The peso slipped against the dollar on Friday before the release of the US personal consumption expenditures (PCE) price index data later in the day, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The dollar-peso traded sideways as market participants continued to wait for details on Trump’s retaliatory tariffs and ahead of the PCE, which should provide cues on the US Federal Reserve’s monetary path,” a trader said in a phone interview.

US consumer spending rebounded less than expected in February while a measure of underlying prices increased by the most in 13 months, stoking fears the economy was facing a period of tepid growth and high inflation amid an escalation in trade tensions, Reuters reported.

Economists say President Donald J. Trump’s protectionist trade agenda, marked by a rush of tariff action announcements since taking office in January, will boost prices of imported goods and drive inflation higher in the coming months.

The PCE price index increased 0.3% in February after advancing by the same unrevised margin in January and in line with economists’ expectations.

In the 12 months through February, PCE prices increased 2.5%, matching January’s rise.

Before the PCE data release, the dollar was headed for a steady week as concern about tariffs slowing US growth has pushed down US yields, stocks and the currency.

The dollar’s decline over the past few months has confounded market expectations for a higher US currency under Mr. Trump’s tariffs, wiping out long dollar positions and leaving traders unsure how to position or react as he upends trade relations.

For this week, the trader said the peso’s movements will largely depend on the PCE data and the Trump administration’s tariff announcements.

The trader sees the peso moving between P57.20 and P57.60 per dollar this week, while Mr. Ricafort expects it to range from P57.20 to P57.70.

Mr. Trump said on Friday that he was open to carving out deals with countries seeking to avoid US tariffs but those agreements would have to be negotiated after his administration announces reciprocal tariffs on April 2, Reuters reported. — A.M.C. Sy with Reuters

PHL shares may decline amid Trump tariff watch

BW FILE PHOTO

PHILIPPINE SHARES could decline this week as uncertainty surrounding the Trump administration’s trade policies continues to affect sentiment.

On Friday, the bellwether Philippine Stock Exchange index (PSEi) rose by 0.12% or 7.93 points to 6,147.44, while the broader all shares index inched up by 0.12% or 4.59 points to 3,666.95.

Week on week, however, the PSEi dropped by 1.9% or 119.31 points from its 6,266.75 finish on March 21, declining for a third consecutive week.

“The local bellwether index held steady at its trading range, primarily pushed-and-pulled by interest rate-related headlines,” online brokerage firm 2TradeAsia.com said in a market note.

“The local market had a bearish week as it went below its 50-day exponential moving average. Its MACD (moving average convergence/divergence) line has crossed below the signal line, implying downward momentum in the short term. Trading has been anemic, showing weak market confidence,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

For this week, the market will likely keep an eye on the Trump administration’s tariff plans, he said.

“We still see global economic outlook concerns caused by the US’ protectionist stance posing downside risks to the local bourse. In line with this, investors are expected to watch out for the implementation of the US’ upcoming reciprocal tariffs to see if there will be any adjustments. Any new tariff announcement from the US government is expected to pull the local bourse lower,” Mr. Tantiangco said.

US President Donald J. Trump on Friday said that he was open to carving out deals with countries seeking to avoid US tariffs but those agreements would have to be negotiated after his administration announces reciprocal levies on April 2, Reuters reported.

“On a positive note, hopes that the BSP (Bangko Sentral ng Pilipinas) will cut rates in their April meeting may help lift sentiment. Investors are expected to watch out for our March inflation due on Friday as this will give clues on the BSP’s next policy moves,” Mr. Tantiangco added. He said the PSEi could move from 6,000 to 6,400 this week.

A BusinessWorld poll of 17 analysts conducted last week yielded a median estimate of 2% for the March consumer price index.

If realized, this would be a tad slower than the 2.1% in February and the 3.7% clip in the same month a year ago. This would also be the lowest monthly inflation in six months or since the 1.9% print in September.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort placed the PSEi’s support at 6,000 and resistance at 6,275-6,530.

2TradeAsia.com put support at 6,000 and resistance at 6,400. “Sentiment remains relatively fragile above 6,300 as upcoming inflation data and central bank policy rhetoric remain at the forefront, ahead of any mid-year adjustments at the corporate earnings level.” — Revin Mikhael D. Ochave

Expanded livelihood aid sought for transport workers, small businesses amid EDSA rehab

Motorists deal with heavy traffic along EDSA in Makati City. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Chloe Mari A. Hufana, Reporter

THE PHILIPPINE government has been urged to expand livelihood assistance to transport workers and small businesses likely to be affected by the impending year-long rehabilitation of the Epifanio De los Santos Avenue (EDSA) this April.

Federation of Free Workers President Jose Sonny G. Matula said the government must proactively protect transport workers, such as drivers and conductors, by expanding programs like EnTSUPERneur, which provides up to P30,000 in livelihood assistance.

He also cited the Tsuper Iskolar of the Technical Education and Skills Development Authority (TESDA), which offers skills training and scholarships.

“Clear communication, financial support during disruptions, and consultation with workers’ groups are also essential to ensure their rights and welfare are upheld during this period of transition,” he said in a Viber chat.

He also encouraged the National Capital Region branch of the Labor department to communicate with affected workers.

“Stakeholders warn that without immediate government intervention, prolonged disruptions could deepen the financial strain on an already vulnerable workforce,” the labor group leader added.

Geoffrey P. Labudahon, national coordinator of Riders-Sentro, said transportation network vehicle systems workers would be negatively affected by the rehabilitation of EDSA.

“Longer trips mean longer time to drop off, fewer delivery jobs can be completed, and more time is needed to finish each order,” he said in a Viber chat. “Fuel consumption and maintenance costs will also increase because vehicles experience more wear and tear in heavy traffic.”

This could also delay deliveries and cause a rise in complaints, which could lead to account suspensions or terminations of riders.

He also noted riders may not have a choice but to reroute, resulting in more penalties as any deviation would be noticed by applications.

The Department of Transportation and the Metro Manila Development Authority said last week the rehabilitation of Metro Manila’s busiest thoroughfare would take a year up to a year and a half.

Transportation chief Vivencio B. Dizon assured motorists last week they will be amenable to delays if they do not reach a plan that would fit all, especially motorists and commuters.

The rehabilitation is expected to address structural deterioration and improve the overall condition of the infamously congested highway.

Around 300,000 to 400,000 vehicles pass through EDSA daily, with an estimated 1.6 million commuters relying on various modes of transportation along EDSA.

Gov’t to send troops to Myanmar

PHILSTAR FILE PHOTO

THE PHILIPPINE GOVERNMENT will send soldiers, medical personnel, and search rescue and retrieval teams to Myanmar after it was hit by a 7.7-magnitude earthquake that killed over 1,600 people, according to the Office of Civil Defense (OCD).

In a statement, the OCD said the team of 114 personnel will be sent to Myanmar on April 1 and will be deployed for two weeks to support those affected by the quake.

The 7.7-magnitude quake hit Myanmar on March 28, considered to be one of the biggest in the last century and has crippled airports, bridges and highway amid an ongoing civil war that has displaced millions, Reuters earlier reported.

The military government said on Sunday that the quake’s death toll has climbed to 1,644, with nine people dying in neighboring Thailand.

The Philippines will send 31 personnel from the Department of Health, 80 personnel consisting of light Urban Search Rescue teams from the Bureau of Fire Protection, Armed Forces of the Philippines, Metro Manila Development Authority, and Apex Mining Corp./First Gen-Energy Development Corp. search, rescue, and retrieval teams.

The team will also include two personnel from the OCD and Philippine Air Force Contingent Commander Lieutenant Colonel Erwin Diploma.

Myanmar had requested emergency search and rescue teams (with K9 or SAR dogs), medical assistance teams, medicines, medical equipment, emergency first aid kits, mobile generators, water sanitation kits, solar-powered lights, among other supplies, according to the OCD.

“We stand in solidarity with Myanmar during this difficult time,” Philippine Defense Secretary and National Disaster Risk Reduction and Management Council Chairman Gilberto Eduardo Gerardo C. Teodoro said in the same statement.

“The Philippines is ready to respond to the urgent needs of our neighbors, and we are mobilizing resources to provide assistance as quickly as possible.” — John Victor D. Ordoñez

Keep plant shutdown on track, DoE told

BRENDAN O'DONNELL-UNSPLASH

A PHILIPPINE SENATOR has called on the Department of Energy (DoE) to ensure that the scheduled shutdown of natural gas power plants remains on track and would not be extended.

“We recognize that preventive maintenance is critical to deter unplanned downtime, which adversely affects businesses and inconveniences energy consumers. We are hoping that the DoE would be able to ensure that this activity would not cause undue loss of power,” Senator Sherwin T. Gatchalian said in a statement on Sunday.

Last week, the DoE announced that South Premiere Power Corporation (SPPC) and Excellent Energy Resources Inc. (EERI), jointly owned by Meralco PowerGen, San Miguel Global Power, and Aboitiz Power, will be conducting scheduled maintenance from March 29 to March 31.

The energy department also called on Luzon consumers to implement energy conservation measures throughout the weekend to ensure sufficient supply.

Mr. Gatchalian added that the DoE should closely monitor the scheduled maintenance of the power plants to ensure that they will be completed on time.

He said that consumers should practice energy efficiency and conservation measures to “help shore up the available energy supply and prevent power interruptions.”

“Such conservation efforts would also generate savings for consumers,” he added. — Adrian H. Halili

Boracay tops family getaway list

Local and foreign tourists are seen in Puka Beach in Boracay, Aklan, April 6, 2023. — PHILIPPINE STAR/MIGUEL DE GUZMAN

MORE FILIPINO FAMILIES are looking to travel locally this summer, with Boracay and Manila topping the list of family-friendly getaways this season, according to digital travel platform Agoda.

Filipino families showed a 39% higher preference for domestic over international travel, based on Agoda’s accommodate search data for check-in dates between April 15 to June 15.

Boracay remains the top summer destination among Filipino families with its wide range of kid-friendly resorts, data showed.

“With its gentle waves, soft white sand, and wide range of kid-friendly resorts, the island provides an ideal setting for children to enjoy the waves while parents unwind by the shore,” Agoda said.

Manila was the second most preferred destination with its educational attractions, theme parks, and interactive exhibits. Its shopping malls also feature indoor play areas, cinemas, and family-friendly dining spots.

Filipino families also chose Cebu as their local summer getaway, driven by its famous historical sites and outdoor activities, Agoda said.

Other kid-friendly destinations among families include Bohol and Batangas, both known for their nature-inspired destinations and activities.

“Beach and nature destinations like Boracay, Cebu, Bohol, and Batangas, alongside all-time favorites like Manila, offer both adventure and relaxation for kids and parents alike,” Michael Hwang, country director for the Philippines at Agoda, was quoted as saying.

The rankings were based on the total number of accommodation searches for families with at least one child.

As of January, the Philippines has earned over P65 billion in tourism revenues, exceeding pre-pandemic levels or the P43 billion recorded in Jan. 2019, data from the Tourism department showed. — Beatriz Marie D. Cruz

Ginebra wins P66-M tax case

THE Court of Tax Appeals (CTA) ruled in favor of Ginebra San Miguel, Inc. (GSMI), which claimed it was “erroneously and illegally” charged P66.38 million in excise tax.

GSMI sought P66.38 million in tax refund, paid for the period starting Jan. 23, 2020, to Feb. 9, 2020. This amount reflects the excess of the basic excise tax computed using the new rates, under Republic Act 11467. The said law increased the excise tax on distilled spirits to P42 per liter from P24.34.

The company argued the amendment did not take effect until Feb. 10, 2020, after the law’s publication in print.

The CTA Third Division, in a ruling publicized on March 21, said the law did not take effect on Jan. 1, 2020, the prescribed date in the law, as it was only published in print in the Official Gazette on Feb. 10, 2020.

“The publication requirement for Republic Act No. 11467 was complied with only on February 10, 2020, when the law was published in printed form in the Official Gazette,” the 24-page ruling, penned by Associate Justice Marian Ivy F. Reyes-Fajardo read.

It also noted a digital circulation does not meet the publication requirement of laws, citing a Supreme Court ruling.

The court ordered the Bureau of Internal Revenue (BIR) to refund P66.38 million in excise taxes paid under protest.

GSMI paid this amount under protest on Dec. 29, 2020, after the BIR issued a Notice of Discrepancy and an Amended Notice of Discrepancy assessing deficiency excise tax.

The alcohol company brought the case to the tax court after the BIR failed to resolve its claims for refund. — Chloe Mari A. Hufana

Cops seize P1-M drugs in Zamboanga City operation

LOREN BISER-UNSPLASH

COTABATO CITY — Plainclothes policemen and agents of the Philippine Drug Enforcement Agency (PDEA) seized P1 million worth of crystal meth (shabu) from a male dealer entrapped in Barangay Guiwan in Zamboanga City on Friday night.

Officials of the Police Regional Office-9 (PRO-9) confirmed on Sunday that the suspect is now detained, to be prosecuted for violation of the Comprehensive Dangerous Drugs Act of 2002.

Brig. Gen. Roel C. Rodolfo, director of PRO-Bangsamoro Autonomous Region, said the suspect was immediately arrested after selling more than a hundred grams of shabu, costing P1 million, during a tradeoff in a roadside motel in Barangay Guiwan in Zamboanga City.

Radio reports in Central Mindanao on Sunday stated that the operation was laid out with the help of confidential informants.

Mr. Rodolfo was quoted in radio reports as saying that the PRO-9 has an unrelenting anti-narcotics campaign supported by local executives and vigilant residents in all cities and provinces under its jurisdiction. — John Felix M. Unson

Samsung expected to invest over $1 billion in first half

REUTERS

THE PHILIPPINES is hoping to approve over $1 billion worth of investment by South Korea’s Samsung group within the first half, the Office of the Special Assistant to the President for Investment and Economic Affairs said.

“Right now, what is under process is the one from Samsung, which is over a billion dollars,” Secretary Frederick D. Go, who heads the agency, told reporters on Friday.

“I believe they are rushing the inter-agency discussions,” he added, noting that he hopes the process will be completed within the first half.

He said incentives are governed by the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act for investments under P50 billion.

“Once you are over P50 billion, it is open. So that has to be processed because there’s no exact definition of incentives,” he said.

“They have asks, so we have to process those asks,” he added.

Meanwhile, he said the Philippine side is still waiting for more concrete updates from the US regarding the Luzon Economic Corridor (LEC).

“It is still on. But we are still waiting for more concrete updates from their side,” he said.

He said the Philippines is waiting for a US plan to fund the feasibility study of a flagship project of the LEC, the Subic-Clark-Manila-Batangas cargo railway.

“It is being funded by Sweden and the US. That is what we are waiting for,” he added.

The LEC is being undertaken via a trilateral agreement among the Philippines, the US, and Japan.

Part of a broader collaboration supported by the G7 Partnership for Global Infrastructure and Investment, it aims to strengthen connectivity among strategic sites in Metro Manila, Batangas, Subic, and Clark.

“But the LEC is our project. And there is so much interest from so many countries apart from the US and Japan. We have interest from the UK, South Korea, Australia, Sweden, and Canada,” Mr. Go said.

He said that the leaders of the Philippines and the US are expected to meet in May. — Justine Irish D. Tabile

Healthcare services outsourcer Omega plans to increase Philippine staffing to 5,000

By Justine Irish D. Tabile, Reporter

OUTSOURCED medical services provider Omega Healthcare Management Services Private Ltd. said it is planning to increase its workforce in the Philippines to 5,000, citing growing demand for healthcare outsourcing services.

Omega Healthcare Country Head Santosh Kesari told BusinessWorld that the company currently employs 2,800 professionals in the Philippines.

“Omega Healthcare plans to double its workforce to 5,000 employees by 2026, reflecting confidence in the growth trajectory of the healthcare outsourcing industry,” Mr. Kesari said.

“This expansion underscores the company’s commitment to leveraging the skilled Filipino workforce to deliver high-quality healthcare support services to clients worldwide,” he added.

According to Mr. Santosh, the pandemic has accelerated the adoption of telehealth solutions, which has led to a shift to remote consultations and digital health management.

“Several factors contribute to the rising demand for remote healthcare services, including technological advancements, patient preference for convenience, and the need for cost-effective healthcare delivery,” he said.

“This trend underscores the importance of scalable, remote healthcare services to meet evolving patient needs,” he added.

Challenges faced by healthcare providers are also pushing them to avail of various outsourced services.

In particular, he said that healthcare providers face stringent regulatory compliance, escalating operational costs, and the imperative to enhance patient outcomes.

“Outsourcing non-core functions like medical billing, coding, and revenue cycle management allows organizations to focus on patient care while ensuring compliance and operational efficiency,” he said.

“Specialized outsourcing firms offer expertise in navigating complex healthcare regulations, mitigating risks, and reducing administrative burdens,” he added.

Amid growing demand, he said that the Philippines’ strong pool of nursing professionals and medical coders will solidify the Philippines’ standing as a key player in global healthcare outsourcing.

He cited competitive operational costs and cultural compatibility in understanding Western healthcare systems, and ability to service international clients.

However, he said that healthcare providers outsourcing healthcare services in the Philippines face challenges in talent retention and data security.

“High global demand for healthcare professionals can lead to attrition, necessitating continuous investment in employee engagement and development,” he said.

“Ensuring compliance with international data protection standards requires robust cybersecurity measures and ongoing staff training,” he added.

To support the growth of the industry, he said that the government can extend tax benefits and provide grants for technology upgrades, invest in specialized training programs, streamline compliance processes, and ensure alignment with international healthcare standards.

“The future of healthcare outsourcing in the Philippines is promising, with anticipated growth in telehealth, artificial intelligence integration, and personalized medicine,” he said.

NTT Marine sees growing demand for PHL submarine cable projects

REUTERS

NTT WORLD Engineering Marine Corp. said it is bullish on opportunities in the Philippines, noting growing demand for connectivity as the economy digitizes.

The company announced the planned launch of its new submarine telecommunications cable laying vessel, CS VEGA II, in April.

This vessel will be Philippine-flagged and will maintain domestic submarine telecommunication cables, including international submarine cables in nearby waters, the company said.

“For the new vessel that we launched, this will enable international submarine cable maintenance as well,”  the company’s President and Chief Executive Officer Mamoru Watanabe told reporters on the sidelines of an event last week.

The company is a partner in the Philippine Domestic Submarine Cable Network (PDSCN) which is jointly owned by Eastern Telecommunications Philippines, Inc., Globe Telecom, Inc. and InfiniVAN, Inc.

Eastern Communications parent company Vega Telecom, Inc. is owned by PLDT and Globe.

The PDSCN submarine cable network seeks to enhance connectivity particularly in underserved areas. The project covers a total cable distance of 2,500 kilometers and is considered the longest in the Philippines.

“The opportunity is even more present now because global security is very unstable and a lot of unexpected things (are happening), so demand for submarine cable is increasing. There’s demand from the Philippine side for us to do the laying of submarine cable,” he said.

The company sees an opportunity for submarine cable maintenance in a growing Philippine market, he said.

PLDT Executive Vice-President and Chief Operating Officer Menardo G. Jimenez, Jr. said PLDT signed a contract last year with the Japanese company to repair and maintain its submarine cables.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

NFA targets palay procurement of 880,000 MT

PHILIPPINE STAR/KRIZ JOHN ROSALES

THE National Food Authority (NFA) said on Sunday that it plans to procure around 880,000 metric tons (MT) of palay, or unmilled rice, this year.

The planned volume will allow the NFA to meet its commitment to maintain a minimum reserve requirement of 555,000 MT rice, which is equivalent to 15 days’ consumption, the NFA said in a statement.

The NFA said it also plans to procure 90 new trucks in 2025, with an additional 150 trucks scheduled for 2026.

“These efforts will help address logistical challenges and ensure that farmers, including those in remote areas, have the opportunity to sell their produce to NFA.”

As of February, NFA’s total palay inventory stood at 399,701 MT or nearly 8 million bags. Its rice equivalent was good for eight days’ supply.

Meanwhile, the NFA said it has optimized the movement of rice stocks to reduce logistical costs, saving an additional P172.3 million.

“These cost-cutting measures helped reduce NFA’s deficit, which dropped from P6.097 billion in 2023 to P3.753 billion in 2024,” the NFA said.

The NFA said it appointed 543 new personnel.

“These appointments aim to improve employee morale, productivity, and overall efficiency.”

The NFA also cited the establishment of a fast-lane service for small farmers selling less than 50 bags of palay, and the elimination of re-bagging covering 20% of its total palay procurement, which is expected to save around P215.4 million in operational costs in 2026.

The Department of Agriculture has been calling on Congress to provide funding that will allow the NFA to procure 20% of the harvest to better influence prices.

“We simply cannot fight these battles with one hand tied behind our backs. We need to restore NFA’s powers to regulate rice retail and manage stocks more effectively,” Agriculture Secretary Francisco Tiu Laurel, Jr. was quoted as saying in the NFA statement.

To bring down rice prices, the government has lowered tariffs and declared an emergency that triggered the release of rice stocks held by the NFA.

Inflation eased to 2.1% in February from 2.9% in January as rice inflation dropped to 4.9%, the sharpest decline since April 2020. — Kyle Aristophere T. Atienza

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