THE PHILIPPINES’ unemployment rate in January rose to its highest level in six months, as hiring declined after the holiday season, the statistics agency said on Thursday. Read the full story.
HERZOGENAURACH, Germany — Adidas sold its last pair of Yeezy sneakers at the end of 2024, the sportswear brand said on Wednesday, ending the process of liquidating stock of the lucrative shoe partnership with rapper Ye after splitting from him in October 2022.
Adidas has been trying to put the Yeezy affair behind it since antisemitic rants by Ye, formerly known as Kanye West, forced it to end the highly profitable partnership, denting revenues and driving the company to an annual loss in 2023.
“There is not one Yeezy shoe left, it has all been sold and that episode is behind us,” Chief Financial Officer Harm Ohlmeyer told a press conference on Wednesday after Adidas reported results.
The company has felt the loss of Yeezy particularly in the United States, where the shoes were popular. In its results on Wednesday Adidas said North America sales fell 2% in 2024, “solely due to significantly lower Yeezy sales.”
The company started selling off its remaining stock of Yeezy shoes in May 2023, pledging to donate part of the proceeds to organizations combating antisemitism, including the Anti-Defamation League.
Adidas reported it sold €650 million ($696 million) worth of Yeezy sneakers last year, making a profit of around €200 million.
The year before, Adidas made €750 million in revenue from Yeezy inventory, generating €300 million in operating profit.
The company has set aside €260 million for charitable donations from the proceeds of Yeezy sales, Chief Executive Officer Bjorn Gulden told a press conference. That amounts to about half of the operating profit Adidas made on selling off its stock of the sneakers in 2023 and 2024.
Of that, €200 million is held in a foundation set up by Adidas, while €60 million has already been paid out to charity organizations, Gulden said. — Reuters
US President Donald J. Trump has decisively launched a trade war by imposing tariffs on the nation’s three most significant trading partners: China, Canada, and Mexico. In immediate retaliation, Canada and China have announced their tariffs on American goods. Mexico is expected to follow suit on Sunday. Trump has enforced a 25% tariff on imports from Canada and Mexico while maintaining a 10% tariff on Canadian energy products. Likewise, he has raised tariffs on Chinese imports to 20%.
President Trump has imposed these tariffs to address trade deficits. While he anticipates short-term market disruptions, he hopes these measures will make US manufacturing more competitive in the long run. He expects foreign companies to invest in the US, creating jobs and increasing tax revenue. However, in the short term, stock markets have reacted negatively, and there are concerns that these protectionist measures will lead to increased inflation as the prices of goods rise.
Governments utilize tariffs to protect domestic industries from foreign competition. However, they often lead to economic consequences that can ultimately harm the economies they intend to support. Tariffs are taxes imposed on imported goods, artificially increasing the market price. While this protects businesses in the short term, many analysts believe that these tariffs’ long-term effects will be detrimental to the global economy, including the Philippines, which will still have to contend with the impact of higher prices.
Consumers feel the immediate impact of tariffs as they pay more for their everyday products due to higher consumer prices. This results in a decline in overall consumption spending as consumers feel the impact of reduced purchasing power, which the Philippines experienced with the elevated food inflation over the last few years. By protecting domestic industries from foreign competition, tariffs also decrease the incentives for companies to invest and innovate their products and services, which also negatively impacts the consumer in the long term.
The US is a signatory to many free trade agreements, such as the North American Free Trade Agreement (NAFTA). NAFTA has benefited the US, Canada, and Mexico by allowing more effortless movement of goods and services across borders, benefiting both businesses and consumers.
These tariffs are contrary to the principles of free trade, which are essential for global economic prosperity. Free trade gives firms access to larger markets, giving consumers more options for products at competitive prices. Free trade also encourages specialization as economies can focus their production factors on areas of comparative advantage.
While President Trump may see tariffs as a way to protect domestic industries, they often have negative economic consequences, especially for consumers. It is essential for him to consider the long-term effects of tariffs and to implement policies that promote free and fair trade, which ultimately benefits everyone. Free trade acts as a powerful engine for economic development and global progress. By embracing the principles of open markets and competition, the US can unlock its full economic potential instead of alienating its closest trading partners while creating a more prosperous future for all. Sadly, it seems that President Trump is choosing the more combative path.
The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX.
EJ Qua Hiansen is the CFO of PHINMA Corp. and president of the Financial Executives Institute of the Philippines.
Last week, you wrote about the measurement system and general rules for motivating people without spending much money. Could you list specific examples? — Lone Ranger.
The context of last week’s article was generally about the quality of one-on-one relationships with managers and their direct reports. It means the amount of trust, respect, and deep consideration they share on a daily basis. After all, it’s all about knowing and implementing the “soft” side of management.
This means how people are treated, inspired, and challenged in a work environment where everyone, including the minimum wage earner, is positively challenged to do their best work so they can make an exceptional performance. For example, something as simple as actively soliciting their ideas or even complaints can make a lot of difference.
Many of the following examples appear obvious to many, but unless you try to implement them consistently to all workers, you’ll never realize the possibilities:
SPECIFIC EXAMPLES
One, build and improve individual morale. But first, you need to measure the baseline. This can be done by conducting an annual morale and satisfaction covering at least 60% of the employee population. Focus on identifying specific departments where absenteeism, tardiness, and attrition rates are high.
Immediate solution: Line leaders, supervisors, and managers must conduct a weekly one-on-one engagement dialogue. The objective is to let employees feel free to speak up and connect with management.
Two, require all line executives to connect with people. This is related to number one above. Make a one-on-one engagement dialogue a part of every manager’s key performance tool to connect with their workers every week. Provided further, they do it casually to avoid the stiffness of the process.
Immediate solution: Discontinue the conduct of obsolete exit interviews which give too little, too-late information on why people resign. That’s assuming they’re telling the truth. In many cases, they would only ride the process to fast-track the issuance of their clearance.
Three, empower people to solve problems. Allow people to find all recurring issues related to inefficiency and high operational costs. Coach them on how to make an independent judgment on the issues and allow them to exercise limited authority in identifying possible solutions as long as the return on investment is guaranteed.
Immediate solution: Establish a formal employee suggestion program. Junk the stationary suggestion box which is a breeding ground for poison pen letters. Instead, require all direct reports to report to you their top five costly and recurring issues. Challenge the workers to solve them using low-cost, practical solutions.
Four, encourage creativity and innovation. Motivated workers are creative workers. It may sound trite, but that’s exactly the way it should be. The best practices in dynamic organizations are often peppered with examples of how management finds many ways to give their employees the time, resources, and tools to make things happen.
Immediate solution: Allow workers to spend 10 hours per month to be creative. Give them time to work outside of the rigid constraints of their job. Monitor their progress. If the results are promising, give them reasonable time to complete a project for management approval. Then, repeat the cycle.
Five, invest in employee training and development. This doesn’t mean limiting them to classroom training. There are many options available, like cross-posting them to other departments for a limited period, say for one year. Another option is their completion of free online courses or reporting on the success formula of competition.
Immediate solution: Require them to create a one-year road map towards their career goal. Part of this may include employees sharing what they learned from an online seminar with other employees.
Six, assign people to interesting work of their choice. You need to accept it. Many people are stuck doing work they don’t like. Management psychologist and theorist Frederick Herzberg (1923-2000) said: “If you want someone to do a good job, give them a good job to do.”
Immediate solution: Ask the workers the following questions: How are you doing? Are you experiencing any challenges at work? What kind of support do you want from me? How can I help you? Would you like to be assigned to another job?
Seven, reward and recognize those who deserve it. Giving people proper recognition is not limited to giving them cash rewards. You only have to discover what’s important and give it to them. Some employers realize that their workers need more than their monthly pay. They need ownership — literally and figuratively.
Immediate solution: Consider a stock option plan. If that’s not possible, treat all employees like business partners, and they will act like business partners.
In conclusion, what and how you communicate with employees is as important as what you pay them. In general, it requires the active involvement of employees in making decisions and being treated as human beings.
Consult your people management issues with Rey Elbo on Facebook, LinkedIn, or X or e-mail elbonomics@gmail.com or via https://reyelbo.com. Anonymity is guaranteed.
The Singapore Management University (SMU) is a partner of De La Salle University (DLSU), and I am deeply privileged, as a member of SMU’s International Advisory Council, to have participated in a two-day learning journey organized by SMU in Manila.
I caught glimpses of future-proofing strategies of Philippine businesses through visits to four of the country’s most forward-looking organizations: Union Bank, ACEN, AC Mobility, and Cebu Pacific. Below are my takeaways.
TAKEAWAY 1: TRANSFORM AND INNOVATE YOUR BUSINESS MODEL
The first stop was UnionBank (UB) Innovation Campus. A first in the industry, it is a hub for research and development geared towards beefing up its digital innovation capabilities. The campus houses the bank’s institutes on data science and artificial intelligence, blockchain, and an Asian Institute of Digital Transformation aside from being home to its digital banking entity, UnionDigital Bank.
The facility is a testament to UB’s commitment to help “Tech Up Pilipinas,” UB’s battle cry to hasten our country’s digital adoption. Its UnionDigital unit, alongside its Bangko Kabayan, seeks the financial inclusion of underserved communities nationwide.
TAKEAWAY 2: PURSUE AND EMBED SUSTAINABILITY LEADERSHIP
The next stop was ACEN, formerly AC Energy. One of the fastest-growing renewable energy companies in the Asia-Pacific region, it is a pioneer in advancing the shift to sustainable energy in the Philippines and in the Asia-Pacific region.
ACEN is at the forefront of sustainability leadership, and integrates sustainability in its business strategy with its use of the energy transition mechanism (ETM), the first such deal in the world. This involves the world’s first coal-to-clean credit pilot project complementing the early retirement of the company’s 246-MW coal plant in Batangas.
Another stop was AC Mobility’s office and showroom at Bonifacio Global City (BGC). AC Mobility sees itself as the country’s first end-to-end mobility provider. It has invested in the development of electric vehicle-charging stations to create a sustainable ecosystem as the Philippines transitions to electrified mobility.
TAKEAWAY 3: DEMOCRATIZE YOUR BUSINESS
The final stop was the country’s leading airline, Cebu Pacific (CEB), which operates flights to 27 domestic destinations and 28 international destinations in 15 countries.
CEB recently announced the largest aircraft order in Philippine aviation history. Its memorandum of agreement with Airbus covers the purchase of 152 A321neo (new engine option) aircraft for an estimated $24 billion.
CEB has also been ranked among the top carriers worldwide in managing environment, social, and governance (ESG) risks and opportunities by MSCI ESG, an agency that evaluates public and private companies based on how effectively they manage their ESG risks.
A low-cost carrier with such impressive credentials? That’s an airline that is truly for “every Juan,” an inclusive business offering affordable travel.
Learning journeys involving company visits are effective ways to share best management and business practices. As businesses in the Philippines and the broader ASEAN region navigate a rapidly evolving landscape, institutions like DLSU and SMU (both deeply embedded in the ASEAN business landscape) play a crucial role in bridging academia and industry. They equip leaders with the insights and networks needed to drive meaningful change.
Future-proofing could be made more inclusive by having companies involve more MSMEs in their ecosystems; share their practices with their MSME suppliers; and become “big brother” in terms of practices to their MSME partners.
The social aspect of running a company is extremely important and should be emphasized. For example, Union Bank has acquired the majority of shares of Bangko Kabayan, a network of banks in the countryside. Cebu Pacific is already promoting domestic tourism in the country, thereby providing prosperity to our tourism zones. AC Mobility could also integrate walkability in its portfolio to improve our roads and public spaces, which are not pedestrian-friendly.
Future-proofing a business boils down to three words: innovation, sustainability, and inclusion.
Dr. Ramon B. Segismundo is a senior professional lecturer at the DLSU Ramon V. Del Rosario College of Business and is a member of the International Advisory Council of SMU. He is also CEO of One HRX, a Singapore-based company focused on organization and management consulting, executive coaching, and sustainability leadership advising.
SM INVESTMENTS Corp. (SMIC) said it received recognition at The Asset Triple A Sustainable Finance Awards 2025 for its $500-million bond offering in 2024, which was named the Best Bond for Corporate in the Philippines under the Best Significant Deal category.
“As we continue to diversify and expand across various sectors, this achievement further strengthens our strategy to drive long-term, sustainable growth for the company and its stakeholders,” SMIC Executive Vice-President for Treasury, Finance, and Planning Erwin G. Pato said in an e-mail statement on Thursday.
“This recognition affirms the strength of our financial position and our unwavering commitment to growth. The successful execution of this landmark bond offering and the positive reception from investors reflect SMIC’s resilience and leadership in the market,” he added.
The company’s $500-million bond offering was the largest-ever five-year issuance by a Philippine corporation and achieved the tightest-ever five-year issue spread by an unrated corporation in Southeast Asia. It also generated strong investor demand, with a final order book exceeding $1.6 billion from 103 accounts.
SMIC said it aims to continue strengthening its market leadership in key sectors, including retail, banking, and integrated property development.
The conglomerate posted a 7% increase in net income for 2024, reaching P82.6 billion from P77 billion in 2023.
Of the total net income, banking contributed the largest share at 49%, followed by property at 26%, retail at 18%, and portfolio investments at 7%.
Consolidated revenue grew by 6% to P654.8 billion in 2024 from P616.3 billion the previous year.
Last year, SM expanded its footprint with 619 additional retail stores, two new malls, and 73 new bank branches, with over 85% of its network located in the provinces.
“We ended 2024 with a strong performance, despite the high base of 2023 and inflationary headwinds during the year. Our core businesses all grew, supported by positive macroeconomic fundamentals and healthy consumer sentiment. The fourth quarter registered the highest revenue growth rate of 9.4%, giving us solid momentum into 2025,” SMIC President and Chief Executive Officer Frederic C. DyBuncio said.
On Thursday, SMIC shares rose by 1.99%, or P16, to close at P821 apiece. — Revin Mikhael D. Ochave
THE PHILIPPINES’ unemployment rate in January rose to its highest level in six months, as hiring declined after the holiday season, the statistics agency said on Thursday. Read the full story.
Here’s a quick glance at how PSEi stocks fared on Thursday, March 6, 2025.
THE Department of Agriculture (DA) said on Thursday that it will enforce a maximum suggested retail price (MSRP) scheme for pork in Metro Manila wet markets starting next week, after a consultation with industry members.
The MSRP was set at P380 per kilo for liempo (belly) and at P350 per kilo for kasim (shoulder) and pigue (rear leg), Agriculture Secretary Francisco P. Tiu Laurel, Jr. said.
He added that pricing was arrived at following consultations with the pork industry.
He said the agency will also impose a cap of P300 per kilo for sabit ulo — the price at which traders sell pork to retailers.
However, pork sold in so-called “modern markets” such as supermarkets and hypermarkets are exempt from the MSRP scheme due to their higher operating costs.
He said the new pricing scheme considers the lingering effects of African Swine Fever (ASF).
“We believe the MSRP will help ensure the sustainability of the pork industry, which continues to suffer from ASF’s adverse effects.”
As of Feb. 14, 19 provinces in nine regions had active ASF cases, according to the Bureau of Animal Industry.
First detected in 2019, ASF has spread to 76 provinces, it said.
Mr. Laurel said the MSRP will be reviewed after one month to determine whether adjustments are needed.
Samahang Industriya ng Agrikultura Chairman Rosendo So said the industry is doing its part to “alleviate the burdens of Filipino consumers.”
ProPork President Rolando Tambago and National Federation of Hog Farmers, Inc. Chairman Chester Warren Yeo Tan said the MSRP is essential for the long-term stability of the pork industry.
Representatives from the Department of Trade and Industry and the Philippine National Police were also present during the consultation. — Kyle Aristophere T. Atienza
By Kyle Aristophere T. Atienza, Reporter
THE provincial council of Palawan approved a 50-year moratorium on new mining applications, with the measure now going before the governor for signing.
The Sangguniang Panlalawigan-approved moratorium covers all new mining applications, regardless of mine size.
The Department of Environment and Natural Resources (DENR) had not replied to requests for comment at the deadline.
The council also urged President Ferdinand R. Marcos, Jr. to proclaim Palawan a “no-mining province” and an “agri-tourism zone.”
The effort to secure the provincial-level ban was a result of “persistent lobby and protest actions,” according to Alyansa Tigil Mina (ATM), which said the push originated in a 2024 pastoral letter by the Catholic bishops of Palawan, followed by a signature petition by Save Palawan Movement and other non-government organizations.
The letter singled out 67 exploration permit applications in Coron, Taytay, Araceli, Dumaran, and Roxas in northern Palawan.
The Mines and Geosciences Bureau lists 16 mining firms holding approved mining tenements and contracts in the province.
“The ordinance is a clear legal expression of Palawan’s opposition to mining, which the Marcos administration and the DENR must fully respect,” ATM said.
“It reflects the lack of consent by stakeholders for mining contracts and operations in the region,” it added. “We hope this will pave the way for a total halt to mining operations in the region.”
The Chamber of Mines of the Philippines said the decision is short-sighted, noting that a 1995 mining law and other regulations “provide stringent environmental safeguards that ensure environmental sustainability in communities.”
As of December 2023, mining companies in the Mimaropa region have planted 3.79 million seedlings in more than 502 hectares of mined-out and other areas, with a survival rate of nearly 90%, and have committed P22 billion for environmental programs, according to the Chamber.
“While approved mining tenements — most of them not operating — occupy only 3.8% of Mimaropa’s total land area, the industry accounts for 7.5% of gross regional domestic product,” it said. “The bulk of the contributions come from operating large-scale metallic mines in Palawan.”
It said assessments of sustainability must also take into account investments “in the well-being and development of people, including their health, education, and skills as passports from poverty and a vital component of a long-term sustainable future.”
“Mining companies are mandated to do just that. Apart from employing thousands of local workers and encouraging the flourishing of other businesses that also create jobs, mining projects in Mimaropa have spent a total of P350.47 million for their Annual Social Development and Management Programs,” it said.
“We maintain that through mining, local governments are greatly supported in their programs that promote a well-educated and skilled workforce — essential to develop sustainable technologies to address environmental challenges.”
The DENR last month issued an order requiring miners to adopt the 17 United Nations Sustainable Development Goals.
Mining companies need to incorporate sustainability efforts into their operations, including biodiversity conservation and climate action. The vehicle for doing so is in the miners’ Social Development and Management Programs (SDMPs).
“Unlike in the past, they must now include programs for enhancing biodiversity conservation and protection, and institutionalizing climate action of host and impact communities, among others,” the DENR said following the release of the order.
An SDMP is a five-year comprehensive plan required of mining companies for the “improvement” of the living standards of host and neighboring communities in their areas of operation.
By Justine Irish D. Tabile, Reporter
THE furniture industry said it needs government support to break into new markets, citing the expense of mounting trade shows overseas.
“We just hope that they support us more, open doors for us, especially internationally,” 2025 Philippine International Furniture Show (PIFS) Chairman Erwin V. Tan told reporters on Thursday.
“It is very expensive to bring shows like this abroad, and it’s not a joke. But with the government there, it’s going to be easier for us. They have all the connections; they have all the resources, so we really need their support,” he added.
He said that the industry is now starting to normalize after the pandemic.
“Things are going back to normal. So our goal is to reposition ourselves back, not only here in the domestic market but also on the international stage,” Mr. Tan said.
Asked about the current standing of the Philippines vis-a-vis its ASEAN counterparts, he said that the Philippine furniture industry has lagged.
“We’re reintroducing a lot of new stuff, new materials, and new talent, because we’d really like to position ourselves for a comeback,” he said.
He said Philippine furniture enjoys a reputation for ingenuity and skilled work, adding: “We just want to bring that back again; thus, we organize shows like this.”
He said that the plan is to do more shows overseas, including Dubai, the US, and Europe adding: “First things first, we have to settle down and fix things first.”
Managed by Global-Link MP Events International, Inc., the 2025 PIFS and Interior & Design Manila (IDM) has around 180 participating brands and 15,000 attendees. It will run until March 8.
Mr. Tan said he is optimistic for the industry this year. “Everything seems to be going back to normal. The construction business is booming again. All the projects that have put on hold are now ongoing. So we feel bullish about it, and that is why we try our best to improve the outlets or the shows like what you see now,” he added.
Asked to comment, Philippine Exporters Confederation, Inc. President Sergio R. Ortiz-Luis, Jr. said the furniture industry is not making full use of the European Union’s (EU) Generalised Scheme of Preferences Plus (GSP+).
“Furniture exports have gone down. It’s almost gone. This afternoon we have a meeting with the EU delegation, and I think the GSP+ will be the topic,” he said.
“We are not taking advantage of it. (Furniture) should be a beneficiary of the GSP+, but it is not being utilized,” he added.
He said challenges faced by Filipino furniture exporters include unfamiliarity with procedures in international markets and high production costs.
THE Philippine Independent Power Producers Association, Inc. (PIPPA) said on Thursday that its members are hoping to resolve the problem of power plant outages “in the soonest possible time.”
“We comply with the no-planned-maintenance rule during the summer months. We make sure our plants run as efficiently as possible. It is in our best interest to ensure that we are operating and that there is stable supply,” PIPPA President Anne E. Montelibano said via Viber.
“Our members are working hard to resolve the issues and to bring those plants back to operation in the soonest possible time,” she added.
PIPPA consists of 28 members with a combined installed capacity of about 18,132 megawatts (MW).
On Wednesday, the Luzon grid was placed on yellow alert — the first such notice this year — due to the increase in forecast demand and power plant forced outages.
According to the National Grid Corp. of the Philippines, peak demand hit 11,829 MW, against available capacity of 12,488 MW.
A total of 3,362.3 MW was unavailable to the grid after 12 power plants declared forced outages while 16 plants are running on derated capacities.
Earlier this week, the DoE urged the public to adopt energy efficiency measures to manage consumption and ensure the stability of supply as temperatures rise with the onset of the dry season.
“The summer months are characterized by higher energy demand, primarily driven by the increased use of cooling appliances such as air conditioners, electric fans and refrigerators. Without mindful consumption, this surge could strain the power grid, potentially leading to supply challenges and price fluctuations in the spot market,” Energy Secretary Raphael P.M. Lotilla said.
The DoE demand forecast this year projects highs of 14,769 megawatts (MW) for Luzon, 3,111 MW for the Visayas, and 2,789 MW for Mindanao.
Actual peak demand last year was 14,016 MW for Luzon on April 24; 2,681 MW for the Visayas on May 21; and 2,577 MW for Mindanao on May 22.
The maximum adjusted available generating capacity for Luzon was reported at 15,504 MW, the Visayas 3,040 MW, and Mindanao 3,314 MW in the Grid Operating Maintenance Program 2025-2027, which incorporates output from committed power projects for 2025.
“By making simple adjustments in daily routines, consumers can contribute to a more sustainable and efficient use of electricity, helping to prevent power interruptions and ensuring that energy resources remain sufficient throughout the summer season,” Mr. Lotilla said. — Sheldeen Joy Talavera
