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Japan pledges immediate rice relief for consumers to prevent shift to foreign brands

FREEPIK

TOKYO, May 23 (Reuters) – Japan’s new agriculture minister pledged on Friday to quickly move rice from government stockpiles to store shelves where they would be offered at prices significantly lower than current levels, seeking to stem a consumer shift to cheaper, foreign brands.

Soaring rice prices, due in part to crop damage from extreme heat and additional demand from a boom in tourism, have become a major concern for Japanese consumers as well as the government with upper house elections set for July.

The government has been releasing some of its stockpiled rice since March but that has yet to translate to lower supermarket prices.

“The abnormal surge in prices that we’re seeing now could accelerate the shift away from domestically produced rice in Japan,” Shinjiro Koizumi told a press conference.

“We’re already seeing supermarkets buying directly from the United States despite having to pay tariffs… We have to quash this abnormal situation and speed is of the essence.”

Japan has historically been reluctant to encourage imports of rice, seeking self-sufficiency for its most basic food and putting up high tariffs to protect local farmers from competition.

Koizumi, the son of former prime minister Junichiro Koizumi, took up his post just two days ago. His predecessor, Taku Eto, was forced to resign after angering voters by saying he had never had to buy rice thanks to gifts from supporters.

Koizumi said he aimed for stockpiled rice to reach store shelves for under 3,000 yen ($21) per 5 kg by early June. That compares with an average price of 4,268 yen in the seven days to May 11, double the same period a year earlier.

Nationwide consumer price index (CPI) data on Friday showed soaring rice prices accelerating overall food inflation to 7.0% in April, from 6.2% in March.

Koizumi also met with Rakuten Group 4755.T CEO Hiroshi Mikitani, who said the online retail giant was prepared to support the government’s efforts.

Upon taking office, Koizumi immediately terminated the auction method of releasing emergency-use rice and said the government would instead sell via discretionary contracts.

The government first released rice from its emergency stock in March through two auctions for 210,000 metric tons, but as of late April, only about 7% had reached retailers due to a complex and time-consuming processing and distribution scheme.

Koizumi said the ministry plans to outline a basic framework for how the new process would work next week.

Questions remain over how the government would select whom to sell to and at what price. It is planning to release 100,000 tons every month through July. — Reuters

Some US banks explore venturing into crypto with joint stablecoin, WSJ reports

REUTERS

Some of the biggest U.S. banks are exploring whether to team up to issue a joint stablecoin, The Wall Street Journal reported on Thursday.

The conversations have so far involved companies co-owned by JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and other large commercial banks, the report said, citing people familiar with the matter.

However, the newspaper said that the bank consortium discussions are in early, conceptual stages and could change.

Reuters could not immediately confirm the report. The banks did not respond to Reuters’ requests for comment late on Thursday.

Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually pegged to a fiat currency such as U.S. dollar, are commonly used by crypto traders to move funds between tokens.

One bank consortium possibility that has been discussed would be a model that lets other banks use the stablecoin, in addition to the co-owners of the Clearing House and Early Warning Services, the Journal said, citing unnamed sources.

Some regional and community banks have also considered whether to pursue a separate stablecoin consortium, it added.

Mr. Trump has promised to be the “crypto president,” popularizing its mainstream use in the U.S. He has said he backs crypto because it can improve the banking system and increase the dominance of the dollar. — Reuters

Wealthy foreign crypto investors descend on President Trump’s golf club for $148 million meme coin dinner

TRUSTPAIR.COM

STERLING, Virginia – Buyers of President Donald Trump’s meme coin converged from around the globe on Thursday for an exclusive dinner at his private country club, overlooking the Potomac River, just outside the nation’s capital.

As guests filed into the event, and President Trump arrived by Marine One helicopter, more than a hundred protesters at the Trump National Golf Club crowded along the edge of the parking lot along the street. Signs included, “America is not for sale,” “stop crypto corruption,” and “release the guest list.”

Among those in attendance was China-born crypto entrepreneur and billionaire Justin Sun, who posted a video of himself, underscored by triumphant music, entering the ballroom and dressed in a tux. Sun won first place in the dinner contest with his $18.5 million wallet, and is also the largest publicly known investor and an adviser to World Liberty Financial, the Trump family’s crypto platform, which has made them hundreds of millions of dollars.

On Wednesday, Sun also posted a video of himself visiting the Executive Office Building, part of the White House complex. In February, the U.S. Securities and Exchange Commission paused its 2023 fraud case against Sun, citing public interest.

Sun declined to comment but posted on X that he is “grateful for the invitation.” The SEC declined to comment.

In a video posted on social media by a meme coin contest dinner guest, Trump told the crowd, “I always put the country way ahead of the business…You become president of the United States, and you want to see people thrive and succeed. The Biden Administration persecuted crypto innovators and we’re bringing them back into the USA where they belong.”

In total, investors spent an estimated $148 million on the $TRUMP meme coin to secure their seats at the dinner, with the top-25 holders spending more than $111 million, according to crypto intelligence firm Inca Digital.

These top holders enjoyed a private VIP reception with Trump, and the four largest investors also received a limited edition Trump Tourbillon watch that sells for $100,000.

A company controlled by the Trump family and a second firm together hold 80% of the remaining supply of $TRUMP coins, and have so far earned $320.19 million in fees, including at least $1.35 million after the dinner announcement, according to blockchain analytics firm Chainalysis.

More than half of the 220 holders who attended the black-tie event are likely based outside the United States, according to blockchain analysis.

In response to criticisms about Trump using his office to enrich himself from the meme coin, White House spokeswoman Karoline Leavitt said Thursday: “All of the president’s assets are in a blind trust, which is managed by his children. And I would argue, one of the many reasons that the American people re-elected this president back to this office is because he was a very successful businessman before giving it up to publicly serve our country.”

The Trump Organization did not respond to requests for comment.

Vincent Liu, chief investment officer of Taiwan-based crypto market maker Kronos Research, said he had hopes of networking with other top holders and even possibly meeting the president.

“That kind of access is rare, and it represents how digital assets are entering the mainstream.”

PRIVATE COCKTAIL RECEPTION
Sheldon Zia, founder of the Cayman Islands-based crypto exchange BitMart, posted on X prior to the event that, as a top-25 holder, he was heading to not just the dinner but also to a private VIP cocktail reception before the dinner and a private VIP tour the following day.

An initial announcement said the 25 VIPs–the majority of their identities so far unknown–would tour the White House.

That detail has since been deleted from the $TRUMP meme website (www.gettrumpmemes.com).

There are also domestic Trump supporters such as Vincent Deriu, a 27-year-old New York consultant who said he already owns “many” Trump-branded watches, “a few pairs of” Trump sneakers, and “more than 50” Trump NFTs. Deriu joined the dinner on Thursday for $116,000.

Trump spent an hour at the event, where meme coin holders were served an organic field green salad, filet mignon, pan-seared halibut, garlic mashed potatoes and a vegetable medley, followed by a warm lava cake, according to a photo of the gold-lettered menu posted to social media.

Senior Democratic members of the House and Senate held a press conference earlier Thursday to highlight what they describe as Trump’s corrupt crypto practices and to push for legislation that would ban such activities.

“Donald Trump’s dinner is an orgy of corruption,” said Massachusetts Senator Elizabeth Warren. Connecticut Senator Chris Murphy noted the anonymity of attendees. “Reportedly, there’s going to be a guy there tonight called Ogle,” Murphy said. “That’s it. That’s all we know about this guy. He wears a mask all the time.”

When reached for comment by Reuters, Ogle, a crypto security specialist, said that he uses a pseudonym and appears in video interviews with his face obscured by a bandana and sunglasses to protect himself because of safety concerns related to his pro bono work, in which he says he has helped victims of crypto criminals recover more than half a billion dollars. Ogle said Murphy’s accusations were “misplaced.” “My motive for attending this dinner is very straightforward,” said Ogle, who also serves as an advisor to Trump’s cryptocurrency platform, World Liberty Financial. “I’m curious by nature, I believe it will be an historic moment, and I’m fortunate to have the opportunity to go.” Ogle came in at number 22 in the contest, and holds a total of $3.6 million worth of the $TRUMP coin.

Democratic lawmakers have introduced a flurry of bills aimed at ending the ability of presidents and members of Congress to own or oversee businesses that issue or promote crypto products.

Given that Republicans have majority control of both the U.S. House and Senate, the Democratic Party has limited ability to pass legislation and call for public hearings or formal investigations.

Of all of the Trump family’s cascade of new crypto ventures – which now include a crypto exchange, a stablecoin, a bitcoin mining operation and digital asset ETFs – the meme coin has sparked particularly strident criticism from Democratic lawmakers and government watchdog groups, who have decried it as “a race to the bottom for presidential grifting.”

Now, even some Trump allies are starting to weigh in, with Republican Senator Cynthia Lummis, a robust and staunch crypto industry advocate, saying the dinner gives her “pause.”

Since the $TRUMP meme coin launched in January, the profits have favored big investors: more than 60 large wallets have profited close to $1.5 billion, with $48 million in profits occurring after Trump posted about the contest on social media, according to reviews by Inca Digital and crypto analytics tracker Bubblemaps, as of May 8.

Meanwhile, about 600,000 other smaller wallets have lost $3.87 billion so far, with $117 million of the losses occurring after the dinner announcement.

The event was capped off with an after-party, called “Meme The Night,” thrown by a Singapore-based meme-coin engagement company called MemeCore.

MemeCore’s co-founder, who goes by the name Ice, traversed the planet to attend the dinner after spending more than $16 million to come in second place. — Reuters

South Korea’s defense ministry says no talks held with US on troop withdrawal

SOUTH KOREAN soldiers salute in front of a huge national flag in Pohang, South Korea, Sept. 30, 2021. — LEE JIN-MAN/POOL VIA REUTERS

SEOUL – South Korea’s defense ministry said on Friday that Seoul and Washington had not had discussions about the withdrawal of some U.S. troops stationed in the country.

The ministry made the comment in response to a report by the Wall Street Journal that said the U.S. was considering pulling out roughly 4,500 troops from South Korea.

One option being considered was to relocate some of the troops to other locations in the Indo-Pacific region including Guam, according to the report, which cited unnamed U.S. military officials.

There are currently 28,500 U.S. troops stationed in South Korea.

South Korea would continue cooperation with the United States to maintain a strong combined defense posture in order to deter North Korea, Seoul’s defense ministry said in a statement.

Seoul and Washington agreed on a five-year plan on defense cost sharing last year but U.S. President Donald Trump has signaled that the cost of the U.S. military presence could be up for discussion in ongoing trade negotiations with Seoul.

South Korean officials have so far maintained the position that defense costs are a separate matter from the trade talks.

The Asian country will hold a snap presidential election on June 3 to elect a new leader following months of political turmoil that have left a power vacuum as South Korea seeks to negotiate to remove U.S. tariffs on its export-reliant economy. — Reuters

Disney delays next two Marvel ‘Avengers’ movies

LOS ANGELES – Walt Disney’s movie studio has postponed the release of the next two installments in Marvel’s blockbuster “Avengers” series, the company said on Thursday.

“Avengers: Doomsday” now will come out on December 18, 2026, about seven months later than its previous date of May 1. “Doomsday” will bring Robert Downey Jr. back to the franchise as the villain, Doctor Doom.

Disney also moved “Avengers: Secret Wars” to December 17, 2027 from May 2, 2027.

The new schedule was chosen to give the filmmakers more time to complete the superhero movies, which are among the biggest Disney has ever made, a source familiar with the matter said. “Doomsday” is already in production.

“Avengers: Endgame,” released in 2019, is the second-highest grossing movie of all time with $2.8 billion in global ticket sales, behind “Avatar” with $2.9 billion. – Reuters

Company works to increase employee savings adoption

“Financial stress can impact one’s physical health, personal relationships, and work performance, Michelle Rina M. Trinidad, human resources director of TELUS Digital Philippines, said.

TELUS Digital’s financial wellness programs, she said, were created based on employee feedback. One of these programs is Savings Arrangement for Financial Empowerment (SAFE), which works as a retirement and investment fund, and also has an employer matching component to employees who save through it.

The company aims to increase SAFE’s employee adoption rate of 30%, Ms. Trinidad told BusinessWorld.

“”Gen Zs are a big chunk of our workforce,”” she added, “”so we are continuously reimagining how we can effectively promote our financial programs that will really resonate to them…””

Interview by Patricia Mirasol
Video editing by Jayson Mariñas

BSP has room for two more rate cuts this year – Remolona

Bangko Sentral ng Pilipinas Governor Eli M. Remolona, Jr. — COURTESY OF BANGKO SENTRAL NG PILIPINAS

by Luisa Maria Jacinta C. Jocson, Senior Reporter

The Bangko Sentral ng Pilipinas (BSP) signaled the possibility of two more rate cuts this year, its top official said, with a rate cut on the table as early as June.

“Maybe two more cuts. Not necessarily consecutive. Still 25-basis points (bps) at a time, given what we know about what’s going on,” BSP Governor Eli M. Remolona, Jr. told reporters at a press chat on Friday.

“The hard part is we don’t know. It’s new territory for most central banks. That’s the most uncomfortable part,” he added.

The Monetary Board in April reduced benchmark interest rates by 25 bps to bring the policy rate to 5.5%.

The central bank has so far slashed borrowing costs by a total of 100 bps since it began its easing cycle in August last year.

Mr. Remolona said a rate cut is still on the table at the Monetary Board’s next policy meeting on June 19.

“So far, the hard data says we have plenty of room to cut inflation, especially because inflation is low,” he added.

Headline inflation in April slowed to an over five-year low of 1.4%, bringing the four-month average to 2%.

Accounting for risks, the BSP expects inflation to average 2.3% this year.

“But we still have to be careful because we don’t want to cut too much. If we cut to the point where our demand exceeds our capacity, then that will be inflationary,” he said.

The central bank will likely continue delivering rate cuts in “baby steps” or increments of 25 bps.

“There’s room for more baby steps,” Mr. Remolona added.

There are four remaining Monetary Board policy meetings this year scheduled in June, August, October and December.

“But in the meantime, we’re trying to strengthen the transmission mechanism. So a rate cut may be more effective, somewhat more effective than before,” he added.

The BSP is also working on updating its frameworks and models to better price in global uncertainties.

“We’re very uncomfortable with our usual analysis, our usual models…because that framework was designed for a different environment.”

“What we’re doing now is we’re thinking harder about various scenarios, because our monetary policy will be affected somewhat by those scenarios,” he added.

US CREDIT RATING
Meanwhile, the BSP chief said they are considering trimming their holdings of US Treasuries to mitigate their exposure to the US amid the recent credit rating downgrade.

“We’re looking at it. The US is now just double ‘A’. It’s one thing when other countries’ debt is downgraded. But the US Treasuries down? That’s a big thing,” Mr. Remolona said.

Moody’s Ratings last week cut the US’ long-term issuer and senior unsecured ratings to “Aa1” from “Aaa,” revising its outlook to “stable” from “negative.”

It said the downgrade “reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns.”

The move stripped the US of its last triple-A rating from the big three credit raters.
In 2011, S&P Global Ratings cut the US’ sovereign long-term credit rating to “AA+” from its top investment grade of “AAA.” Fitch Ratings in 2023 also downgraded the country’s rating to “AA+” from “AAA.”

“But it’s still the most liquid market. The dollar is still the number one currency in terms of international lending and borrowing and in terms of investment,” Mr. Remolona said.

“So it’s likely to remain a very important part of our reserves,” he added.

Pag-IBIG Fund partners with Golden Haven Memorial Park to expand Loyalty Card Plus benefits

In photo are Pag IBIG Fund Deputy CEOs Benjamin Felix, Jr. and Alexander Hilario Aguilar, Pag-IBIG Fund CEO Marilene C. Acosta, Golden Haven COO Estrelita S. Tan, Golden Haven Luzon Operations Head Tessie Lanot, Golden Haven Strategic Partnerships Maria Renee Regala, and Corporate Communications Head Allison Cembrano.

In a significant move to extend meaningful support to its members, Pag-IBIG Fund has partnered with Golden Haven Memorial Park, one of the country’s most respected names in memorial care, to offer exclusive discounts to holders of the Pag-IBIG Loyalty Card Plus.

The partnership was formalized through a ceremonial signing led by Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta and Golden Haven Memorial Park Chief Operating Officer Estrellita S. Tan, with Deputy Chief Executive Officers Alexander Hilario Aguilar and Benjamin Felix, Jr. witnessing the event.

Under this collaboration, Pag-IBIG Loyalty Card Plus holders can enjoy a 5% discount on all Golden Haven products and services, available across its 34 memorial park developments nationwide. This includes not only traditional memorial lots and services but also offerings from Golden Haven’s chapels, crematoriums, and its newly introduced pet cremation services, demonstrating its evolving approach to meet the diverse needs of Filipino families.

Golden Haven Memorial Park Cebu hailed as Best Landscape Architecture last 2022 by Philippine Property Awards

“This partnership reflects our unwavering dedication to Pag-IBIG members, offering a cradle-to-grave benefit carefully designed for every life stage,” said Pag-IBIG’s Ms. Acosta. “True financial wellness includes preparing for life’s certainties, and this collaboration reaffirms our role as Lingkod Pag-IBIG, steadfast in serving members through both their milestones and their most solemn moments.”

As a leading name in the industry, Golden Haven is known for its master-planned memorial parks and dignified services that fuse elegance, accessibility, and compassion. Now, with this tie-up, its premium offerings become more financially attainable to millions of Pag-IBIG members, helping them prepare ahead with ease, dignity, and peace of mind.

Golden Haven Memorial Park Las Piñas, the first themed memorial park in the Philippines

“This partnership with Pag-IBIG Fund allows us to make dignified memorial care more accessible to hardworking Filipinos,” said COO Estrellita S. Tan. “At Golden Haven, we believe that true peace of mind comes from preparation, and through this initiative, we help families plan ahead with dignity, financial security, and compassion.”

Together, Pag-IBIG Fund and Golden Haven Memorial Park reaffirm their shared commitment: to be present in every chapter of Filipino workers — uplifting, supporting, and standing by them through beginnings, milestones, and even farewells.

 


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Marcos eyes ‘bold reset’ of government

PPA POOL YUMMIE DINGDING

CABINET MEMBERS, including state economic managers, submitted their courtesy resignations on Thursday as part of President Ferdinand R. Marcos, Jr.’s “bold reset” of the government to better meet the needs of Filipinos.

The move comes following the poor performance of administration-backed senatorial candidates in the May 12 midterm elections, and amid global uncertainties due to trade concerns that could threaten the Philippine economy.

The Presidential Communications Office (PCO) said the request for resignations will give Mr. Marcos “elbow room to evaluate the performance of each department and determine who will continue to serve in line with his administration’s recalibrated priorities.”

“With this bold reset, the Marcos administration signals a new phase — sharper, faster, and fully focused on the people’s most pressing needs,” it said.

“It’s time to realign government with the people’s expectations. This is not business as usual,” Mr. Marcos said in the statement. “The people have spoken, and they expect results, not politics, not excuses. We hear them, and we will act.”

Officials will continue to perform their duties until their resignations are accepted, or new appointments are made by the President.

The President’s allies failed to win a majority of Senate seats contested in the May 12 polls, leaving Mr. Marcos facing a divided political and legislative landscape that could thwart his attempts to have an ally succeed him in 2028.

Candidates aligned with Mr. Marcos’ estranged vice-president, Sara Duterte-Carpio, outperformed expectations in the midterms, which many saw as a proxy battle between Marcos and the Duterte camps.

With less than three years in office left, Mr. Marcos is under pressure to deliver results and groom a successor capable of fending off any potential run by the popular Ms. Duterte-Carpio in the 2028 presidential election.

Over 30 Cabinet-level officials tendered their courtesy resignations, including economic managers Finance Secretary Ralph G. Recto, Department of Economy, Planning, and Development Secretary Arsenio M. Balisacan, Budget Secretary Amenah F. Pangandaman, and Special Assistant to the President for Investment and Economic Affairs Frederick D. Go.

Cabinet members said in separate statements that they resigned as they “serve at the pleasure of the President.”

Mr. Recto said he fully supports the planned revamp, adding that Mr. Marcos “carries the heavy burden of leading the nation through complex global and domestic challenges.”

For his part, Mr. Balisacan said, “If deemed necessary, I stand ready to hand over the leadership to someone the President believes can better drive our nation’s development goals.”

“It’s a prerogative of the President. The President can change his team anytime, but I think it’s a good time because it’s [the middle of his term],” he said on the sidelines of the BusinessWorld Economic Forum 2025 on Thursday, adding that his department is also doing an internal assessment.

PCO Undersecretary and Palace Press Officer Clarissa A. Castro said at a news briefing that Mr. Marcos is frustrated with the performance of some of his Cabinet members, but did not specify anyone.

“The President has made it clear that all pending and ongoing projects will not be affected during this transition,” she said. “Work continues uninterrupted for our Cabinet secretaries and government personnel.”

While she gave no timeline, she said the President is acting with urgency.

Asked what priorities the government will focus on moving forward, Ms. Castro said infrastructure and education are on top of the list.

POLITICAL MOVE
The directive drew mixed reactions from stakeholders, with some believing that it may have been driven by political concerns.

Arjan P. Aguirre, assistant professor of political science at the Ateneo de Manila University, said the recent polls likely triggered Mr. Marcos’ decision to revamp his Cabinet.

“Being the incumbent, this is something that we can expect as the most logical response to deliver more of what the people want and/or really need,” he said in a Facebook Messenger chat. “This is what I’m sensing as the response of the Marcos government, but again, we have yet to see if this will really lead to real changes or benefits.”

“The bigger effect that we can expect here is the identification of new priorities of the Marcos government — priority projects that target the concerns of the people,” he added.

Josue Raphael J. Cortez, a diplomacy lecturer at the De La Salle-College of St. Benilde, said this recalibration strategy is a timely political move from the Marcos administration.

“This move can be viewed in two ways: first, as a way of projecting that we have a listening government, and second, an implicit conditioning for the 2028 national elections, which will determine whether the ball will still be on the side of the Marcoses, or it will once again pivot towards the Dutertes, despite the issues surrounding the family,” he said in a Facebook Messenger chat.

IBON Foundation Executive Director Jose Enrique “Sonny” A. Africa said the move may be due to Mr. Marcos’ declining approval and trust ratings.

Mr. Marcos has faced a steep decline in public support, according to a March survey by Pulse Asia, with only 25% of Filipinos approving of his performance, down from 42% previously.

In stark contrast, Ms. Duterte-Carpio enjoyed a significantly higher approval rating of 59%.

Sentiment towards the government has soured due in part to a perceived failure to control inflation, a top concern of Filipino households, even though it has been back within the central bank’s 2% to 4% target range since August.

“The ineffectiveness of government efforts to improve the well-being of the majority is most of all due to the nature of the economic policies themselves, which favor short-term corporate profitability and the wealth of politically connected families rather than universal provision of public social services and aiming for real Filipino industrialization to create jobs,” Mr. Africa said in a Viber chat.

He said the government needs to reset policies and not just the Cabinet. “No matter how many times Cabinet members are changed, the public sector and economy won’t be transformed unless real reforms for social and economic transformation are undertaken.”

Philippine Chamber of Commerce and Industry President Eunina V. Mangio said in a statement that the move is surprising as the government “has been performing relatively well in managing the economy,” although progress has been undermined by political issues.

“We are trying to get more investments for the country, especially with the passage of the CREATE MORE (Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy) Act. We want to continue fostering economic growth and investor confidence, and so we hope that the courtesy resignations will bring in accountable and merit-based appointments and appointments done [as soon as possible] to avoid political instability and so as not to derail economic continuity,” Ms. Mangio said.

“We understand the President’s actions and intentions as this happens in business and the private sector. A CEO (chief executive officer) needs to make difficult calls, such as replacing talents, with the primary objective of improving the performance of the organization,” Management Association of the Philippines President Alfredo S. Panlilio said in a statement. “Difficult as it may be, the call of leadership is to make such hard decisions in the interest of establishing meritocracy and encouraging performance. We hope the President will find the appropriate talents for those he decides to replace — people who can effectively execute his government’s plans.”

“We trust that capable, proactive, and committed individuals will be empowered and work together as a cohesive team to execute the nation’s plans to uplift the lives of all Filipinos and move us closer to the outcomes our people deserve.”

Makati Business Club Chairman Edgardo O. Chua told reporters at an event that they are hoping that the Cabinet revamp would not be major as they are generally satisfied with the performance of the current economic team.

“If many of them are replaced, it will be disruptive,” he said. “We are hoping that the President will be able to maintain the good ones.”

Mr. Marcos’ call for courtesy resignations will “enable him to have a free hand in appointing or reappointing people who he believes will deliver in the second half of his term,” he said.

“So, we just hope that the President will be able to quickly announce who will be appointed or reappointed so that there is minimal disruption,” Mr. Chua added. — Chloe Mari A. Hufana with Reuters

US rating cut could benefit the Philippines, other markets

PEXELS-JOHN GUCCIONE

THE UNITED STATES’ latest credit rating downgrade could benefit the Philippines and other emerging markets as this could prompt investors to diversify their portfolios.

“The US credit downgrade is negative for US dollar and US dollar-denominated assets but positive for the peso as global funds diversify into non-dollar assets, including emerging market asset classes. The Philippines is part of the emerging market universe,” Cristina S. Ulang, head of research at First Metro Investment Corp., said.

“It’s possible the downgrade could lead some investors to diversify away from dollar assets,” Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a Viber message. “This may create an opportunity for markets like the Philippines, but any shift would depend on broader risk sentiment and how local fundamentals compare with other emerging markets.”

Moody’s Ratings last week cut the US’ long-term issuer and senior unsecured ratings to “Aa1” from “Aaa,” revising its outlook to “stable” from “negative.”

The debt watcher said this downgrade “reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns.”

The move stripped the US of its last triple-A rating from the big three credit raters. In 2011, S&P Global Ratings cut the US’ sovereign long-term credit rating to “AA+” from its top investment grade of “AAA.” Fitch Ratings in 2023 also downgraded the country’s rating to “AA+” from “AAA.”

The Philippines holds investment-grade ratings from all three debt watchers. S&P in November last year kept its “BBB+” long-term credit rating for the country, a notch below the “A” level grade targeted by the government, and raised its outlook to positive.

Meanwhile, Fitch and Moody’s rate the Philippines at “BBB” and “Baa2,” respectively, with stable outlooks, which are a level below S&P’s rating. Fitch affirmed its long-term rating in April, while Moody’s latest sovereign rating action was announced in August 2024.

The Philippines’ manageable debt-to-gross domestic product (GDP) ratio could make it a preferred option for investors, Ms. Ulang said.

The government is seeking to bring the debt-to-GDP ratio down to 60.4% by the end of 2025, and to 56.3% by 2028. Debt as a share of GDP stood at 62% at the end of the first quarter.

BDO Senior Vice-President and Trust and Investments Group Head Frederico Rafael D. Ocampo said the fiscal concerns cited by Moody’s for the rating downgrade could cause US assets to perform weaker in the near term as investors look for other markets.

“While the immediate reaction following the announcement was a sell-off across most US assets, the move has been partially retraced on investors looking to take advantage of cheap valuations,” Mr. Ocampo said in a Viber message.

“Looking ahead, we anticipate US-denominated portfolios to trade weaker following a broader de-risking in US assets in the near term, especially if the US government fails to address the more systemic issue of a growing deficit funded by more borrowings.”

Mr. Ocampo added that elevated long-term rates could “add pressure on portfolios with substantial exposures in the tail end of the yield curve, such as those of insurance companies and pension funds.”

BORROWING COSTS
Bank of the Philippine Islands (BPI) Lead Economist Emilio S. Neri, Jr. likewise said that higher rates could affect borrowing costs.

“Investors may demand higher yields on US government debt to compensate for the perceived increase in risk,” Mr. Neri said in a Viber message. “This could impact local corporates in the Philippines with dollar-denominated debt, as they may face higher borrowing costs.”

However, the rise in interest rates could be marginal as the US’ credit rating is still high, even with the latest downgrade.

“In addition, local corporates or investors holding US Treasuries could see a decline in the value of their holdings if yields rise, since bond prices typically move inversely with interest rates,” he said.

“Spillover effects on emerging markets in general might be on higher borrowing costs when there is a demand for higher premiums with higher risk due to the downgrade pushing rates relatively higher,” Mr. Limlingan added.

Meanwhile, Leonardo A. Lanzona, an economics professor at Ateneo de Manila University, said that while the downgrade could trigger a shift away from US risk assets, the Philippines may not necessarily be the first choice for investors.

“Since the Philippines is tied to the US, I don’t think (there) will be investing in the Philippines. Countries that have divested from US assets are more likely to gain. Canada and Europe may have done so already,” he said in an e-mail.

“Filipino investors can shift their investments in other countries, although the options can be limited to China.”

Mr. Lanzona added that the US economic concerns flagged by Moody’s would also have a negative impact on the Philippines.

“This can have both real and financial effects on the country. In the real sense, the country will be affected since the US is the country’s top importer.”

The Philippines should implement economic policies that “favor domestic production and greater protection for the workers,” he said, especially amid global uncertainties.

“Enhancing technological innovation within the country and greater flexibility for firms and workers should be given priority,” Mr. Lanzona added. — Luisa Maria Jacinta C. Jocson and Aaron Michael C. Sy

PHL must boost productivity, diversify growth drivers as trade shifts pose risks

DEPARTMENT of Economy, Planning, and Development Secretary Arsenio M. Balisacan, ASEAN+3 Macroeconomic Research Office Dr. Andrew Tsang and Special Assistant to the President for Investment and Economic Affairs Frederick D. Go delivered keynote speeches at the BusinessWorld Economic Forum “Unlocking Philippines’ Potential” held at the Grand Hyatt Manila, Bonifacio Global City on Thursday. — PHILIPPINE STAR/RYAN BALDEMOR

THE PHILIPPINES must improve labor conditions and infrastructure, attract more investments, and diversify its growth drivers as global uncertainties due to trade war concerns threaten the economic landscape.

“The Philippine economy today stands at a crossroads. We find ourselves at this juncture, and significantly, when various developments and trends affect all economies, large and small… We live in a time of profound transformation, where influential megatrends disrupt the global landscape, posing risks but presenting opportunities to economies such as the Philippines. These forces are interconnected, complex, and dynamic, pushing nations to adapt, innovate, and position themselves strategically,” Department of Economy, Planning, and Development Secretary Arsenio M. Balisacan said in his keynote speech at the BusinessWorld Economic Forum 2025 on Thursday.

“Sustaining economic progress and reaching higher potential growth requires broadening the foundations of our economy beyond our traditional reliance on consumption and services. This requires attracting more investments, generating higher-quality and better-paying jobs — particularly in manufacturing and higher-value-added services — and expanding into new markets.”

Mr. Balisacan said heightened uncertainty due to the Trump administration’s trade policies, and rising protectionism among economic giants threaten the global economic landscape.

“Such uncertainty creates significant planning challenges for businesses and investors, who may now be more inclined to adopt a ‘wait-and-see’ position for the foreseeable future.”

Still, despite global headwinds, the Philippines’ strong growth momentum and reforms have bolstered investor confidence, he said, citing development gains in areas including incomes, jobs, and poverty reduction, as well as sound macroeconomic fundamentals, the official said.

“Sustaining growth and building resilience require deliberate actions to reinforce the economy’s growth pillars moving forward… The disruptions caused by the megatrends provide us with a strategic window of opportunity to pivot toward a new growth model, one where the economy finds strength and durability not in one or two pillars but across a broad spectrum of sectors powered by innovation, technological diffusion, and an enabling governance,” Mr. Balisacan said.

Strengthening the country’s regions as part of its economic diversification will also help the Philippines protect itself from external disruptions, he added.

“An equally important strategy is raising the productivity of our economic sectors through the adoption of modern, value-creating innovative technologies and future-proofing the economy through transformative and forward-looking policy reforms,” Mr. Balisacan said.

“Committing to efficient program governance — to more effective and impactful spending — given the limited fiscal space is key to better outcomes such as productivity growth, competitiveness, and inclusion. This imperative is not simply about catching up but seizing a strategic moment. With foresight that draws from the lessons of the past and through our collective resolve, we can build a more competitive, inclusive, and future-ready Philippine economy.”

PRODUCTIVITY GAINS
ASEAN+3 Macroeconomic Research Office (AMRO) Country Economist Andrew Tsang said in a separate speech at the same event that boosting the Philippines’ economic productivity is key to achieving a higher income status.

The gross national income (GNI) per capita of the Philippines needs to increase by 231% to become a high-income country by 2050, he said.

“Achieving this will require an average [GNI] growth rate of over 4.5% per year over the next 35 years. In principle, this is possible for the Philippines to achieve the high-income country status,” Mr. Tsang said, but added that sustaining consistent growth could be difficult.

“The critical question is, can the Philippines avoid the middle-income trap, particularly with the heightened global uncertainties and challenges from the emergence of innovative technologies? … However, the Philippines can achieve this high-income country target, which will depend on how well the country addresses the long-term structural challenges and implements a comprehensive strategy for upgrading the productivity and enhancing the country’s competitiveness.”

The Philippines is currently classified as a lower-middle-income country as its GNI per capita was $4,230 in 2023, up from $3,950 in 2022.

According to the World Bank’s classification, an economy is considered lower middle-income if the GNI per capita level is between $1,146 and $4,515, while upper middle-income countries are those that have a GNI per capita of $4,516 to $14,005. High-income status can be achieved if a country has a GNI per capita of more than $14,005.

Mr. Tsang said they believe the Philippines can get upper middle-income country (UMIC) status by 2026, in line with the government’s target. The country’s GNI per capita needs to increase by 6.8% from the 2023 level to achieve this status, he said.

World Bank Group Lead Economist and Program Leader for the Prosperity Unit for Brunei, Malaysia and the Philippines Gonzalo Varela earlier said the Philippines is more likely to achieve UMIC status by 2027.

Mr. Balisacan has said the economy needs to grow by 6% until next year to achieve their targeted UMIC status.

For its part, AMRO expects Philippine gross domestic product growth to be a bit below 6% this year due to the potential impact of the Trump administration’s tariff policies, Mr. Tsang said.

“But in any case, we are still quite optimistic to the country’s economy because the direct and indirect impact of the tariff on the Philippines would not be that big. But the indirect impact depends on the final version of the tariff.”

The Philippine economy expanded by 5.4% in the first quarter, slightly faster than the 5.3% growth in the prior three-month period but slower than the 5.9% pace in the same quarter last year. This was well below the government’s 6-8% growth target band for 2025.

The weak growth came as gross capital formation growth was dampened by businesses’ anticipation of global trade uncertainties.

Miguel G. Belmonte, president and chief executive officer of BusinessWorld Publishing Corp., said that while the Philippines has, as an “emergent economy,” achieved consistent growth even during challenging times, it must “elevate itself from resilience to relevance.”

“Embracing a whole-of-society approach is clearly the best way forward for our government to navigate the challenges that lie ahead. While it lays the groundwork, the private sector drives momentum and serves as primary engines of economic growth, job creation, and innovation in the country,” Mr. Belmonte said.

“We simply cannot afford to be left behind in the frantic race towards a sustainable future.” — Aubrey Rose A. Inosante

Philippine companies told to realign resources amid risks

ALVARO REYES-UNSPLASH

By Revin Mikhael D. Ochave, Reporter

PHILIPPINE companies should boost resiliency and realign their resources in the face of a global trade war that puts economic growth, jobs and wages at risk, according to corporate leaders.

Filinvest Development Corp. (FDC) has been strengthening its business by investing in its systems and people to manage risks, Francis Nathaniel C. Gotianun, a director at the listed property company, told the BusinessWorld Economic Forum in Taguig City on Thursday.

“There’s always been a lot of uncertainty in business,” he said. “There are always risks. But we take the lessons over the years and we’re just enhancing them.”

Mr. Gotianun, the senior vice-president at FDC hospitality unit Filinvest Hospitality Corp., said the group has taken a prudent approach to its growth plans.

“As the environment has changed, we too have changed by making sure that each of the businesses take into account in their planning all the macroeconomic and geopolitical factors,” he said.

“We’ve always been a company that has been willing to pivot and to change,” he added.

Monica L. Trajano, Aboitiz InfraCapital Economic Estates vice-president for commercial strategy, said resiliency among companies should be built for the long term.

“Resilience goes beyond roads and buildings,” she told the forum. “It’s about building systems that last, like investing in local talent, aligning education with the needs of industries and embedding sustainability in how we grow.”

“For us, resilience does not only mean being strong relative to shocks but also looking at long-term plans. When we say that a company is resilient, adaptable and inclusive, it means that a company is able to create value outside of itself,” she added.

Ms. Trajano said the resiliency and expansion plans should be data-driven and meet customers’ evolving needs.

“It’s really being data-driven,” she said. “Expansion is… really taking a look at what the smart moves are relative to what’s happening in our environment and understanding what our core purpose is.”

“Resiliency for us means that we invest in future-proofing, investing in sustainable infrastructure and workforce readiness,” she added.

Robert Dan J. Roces, an economist at SM Investments Corp., said one way to increase the resiliency of companies is by upskilling their employees.

“Future-proofing will be very important,” he told the forum. “That doesn’t necessarily include the infrastructure, but you also need upskilling. It’s very important to upskill people with the new processes. That actually forms part of the resilience package.”

Mr. Roces said resilience also future-proofs workers especially with increased artificial intelligence (AI) adoption.

“If you’re looking at a resilient company, you’re seeing one that’s not only surviving in terms of the numbers, but you’re also seeing people who aren’t leaving,” he said. “You’re looking for more talent to come into the company.”

Joseph Nino Young, GCash senior manager and partnerships and business development head, said the e-wallet could help Filipinos secure their finances amid economic uncertainties.

“In times of economic uncertainty, what people are looking for is security,” he said at the forum. He added that financial products such as savings, investments and insurance are tools that Filipinos could use to secure their finances.

“We want to intensify our educational [campaign] in terms of teaching people how to save, how to invest and how to grow their money,” he added.