Approved foreign investments drop to P544B in 2024

February 14, 2025 | 4:26 pm

PHL Flags — Philippine flags line the road in the City of Dasmariñas in Cavite, June 2, 2023. — PHILIPPINE STAR/EDD GUMBAN

By Abigail Marie P. Yraola, Deputy Research Head

Approved foreign investments in the Philippines fell by 38.9% last year to P543.62 billion, the steepest decline in four years, the Philippine Statistics Authority reported on Thursday.

Preliminary data from the PSA showed the value of foreign commitments approved by the country’s investment promotion agencies (IPAs) in 2024 was lower than the P889.24 billion in 2023.

The annual fall in foreign investments was the lowest since the 71.3% drop recorded in 2020.

In the three months to December, pledges reached P57.70 billion, down 85.4% from P394.46 billion in the same period in 2023.

This was the steepest decline in over 26 years or since the 94.5% slump in the third quarter of 1998. By value, it was the lowest since the P27.46 billion in the third quarter of 2023.

“Global uncertainty due to geopolitical tensions is the primary reason for the large drop in foreign investments for the quarter,” Oikonomia Advisory & Research, Inc. economist Reinielle Matt Erece said in an e-mail.

He added that US President Donald J. Trump’s campaign and eventual win alongside his policies which includes tariff increases, strict immigration regulations, and other trade reforms made investors hesitant to invest outside their home countries.

“Foreign investors are hesitant as they hold on to their capital, re-analyze global risk factors, and is on a ‘wait and-see’ mode on the ongoing developments of the global economy,” Mr. Erece said.

Additionally, he said that the latest approved foreign investments data affected the country’s growth trajectory and while unemployment remains relatively low and stable, economic sentiment is negatively affected by growth print which will carry on towards this year.

“Investors will now be concerned of a slow growth in consumption, and adding global uncertainty to the mix, will make them even more hesitant to invest in the country,” he said.

The Philippine economy expanded by 5.2% in the fourth quarter of 2024, the slowest pace in six quarters or since the 4.3% in the second quarter of 2023.

This brought the country’s gross domestic product (GDP) at 5.6% in 2024, below the revised 6-6.5% government target.

On the other hand, unemployment in the country slowed to 3.1% in December which brought the full year average to an all-time low of 3.8%. This is equivalent to 1.94 million jobless Filipinos.

The December figure was the lowest since April 2005, when the statistics agency revised its definition of unemployed to Filipinos aged 15 years and older without a job, available for work and actively seeking one.

For the fourth quarter, investment commitments were approved by five IPAs — Board of Investments (BOI), BOI-Bangsamoro Autonomous Region in Muslim Mindanao (BOI-BARMM), Clark Development Corp. (CDC), Philippine Economic Zone Authority (PEZA), and Subic Bay Metropolitan Authority (SBMA).

Switzerland was the top source of investment pledges for 2024 after committing P289.06 billion, or 53.2% of the total. It was followed by South Korea’s P100.34 billion (18.5% share) and the Netherlands’ P50.22 billion (9.2% share).

Meanwhile, in the fourth quarter, South Korea had the largest approved investments with P26.16 billion, accounting 45.3% of the total P57.70-billion pledges. This was followed by the Netherlands at P9.19 billion (15.9% share) and Japan with commitments worth P4.11 billion (7.1% share)

The BoI contributed the largest bulk with 70.7% of foreign investment pledges worth P384.44 billion last year.

In the last three months of 2024, BoI had the largest commitments worth P28.10 billion followed by PEZA with P15.44 billion.

SBMA and CDC approved P13.64 billion and P445.10 million worth of pledges, respectively. BoI-BARMM approved P86.66 million worth of commitments.

During the period, the Authority of the Freeport Area of Bataan, Bases Conversion and Development Authority, Cagayan Economic Zone Authority, Clark International Airport Corp., Poro Point Management Corp., John Hay Management Corporation, Tourism Infrastructure and Enterprise Zone Authority, and Zamboanga City Special Economic Zone Authority did not approve any investment pledges during the period.

In 2024, about 62.8% or P341.50 billion of the total approved foreign investments will go to the energy sector.

Meanwhile, in the October to December period, the manufacturing sector cornered the largest approved foreign investments with P30.55 billion, about 52.9% of the total pledges during the period.

Additionally, around 20.6% or P11.87 billion of the approved foreign investments will go into the transportation and storage industry, while 13.3% or P7.68 billion worth of pledges will be invested in the energy industry.

During the period, 34.5% of these foreign investment commitments worth P19.92 billion will be for projects in Central Luzon.

Meanwhile, Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) cornered P13.51 woth of investment commitments while Metro Manila will get P12.86 billion.

In 2024, Calabarzon cornered around P195.67 billion worth of these investment pledges.

Should these foreign commitments materialize, these projects are expected to generate 39,284 jobs, 20.3% higher than the 23,726 projected jobs a year earlier.

Mr. Erece said that in terms of job generation, it is still too early to predict a slowdown but it is important for policymakers to take steps to prevent this slowdown and attract more investments to stimulate job growth and accelerate economic expansion.

“Some of the measures that policymakers can do is to implement more accommodative monetary policy, such as a timely rate cut,” Mr. Erece said.

While this may eventually cause the Philippine peso to depreciate especially against the US dollar, he added that the “economy is much more reliant on domestic consumption and spending so doing a rate cut will improve market sentiment and encourage spending from both businesses and consumers in the country.”

At its first policy meeting last Thursday, the Bangko Sentral ng Pilipinas (BSP) decided to keep it rates steady at 5.75%.

The central bank trimmed rates by a total of 75 basis points last year.

In the fourth quarter, total investment commitments from foreign and Filipino nationals fell by 36.1% to P373.70 billion, lower than P585.17 billion in the same period in 2023. Investment pledges by Filipinos reached P316 billion in the last quarter, accounting for 84.6% of the total.

Mr. Erece sees rising tensions on global trade, and a pause in rate cuts by the BSP, due to slow growth expected in 2025 and “cannot be optimistic for a growth in investments this quarter.”

However, he said that being an economy largely driven by domestic consumers and businesses provides a significant advantage in this uncertain global landscape.

“Stimulating consumption through fiscal spending and accommodative monetary policy can improve business sentiment, thereby inviting more foreign investments in the country,” he said.

The PSA data on foreign investment commitments, which may materialize shortly, differ from actual foreign direct investments tracked by the BSP. The central bank’s monitoring goes beyond the projects and includes other items such as reinvested earnings and lending to Philippine units via their debt instruments.

6 powerful ways to achieve your financial goals sooner than you think

February 14, 2025 | 2:34 pm

We all have big dreams—whether it’s starting your own business, traveling the world, retiring early, or securing a comfortable future for our loved ones. The good news is that achieving your financial goals doesn’t have to take decades of hard work.

According to a 2024 study by the Bangko Sentral ng Pilipinas (BSP), Filipinos who start saving and investing early are more likely to reach their financial goals faster. The study highlights that individuals with higher financial literacy, particularly young adults, are better equipped to make smart financial decisions that can accelerate their path to financial freedom.

Here are six proven ways to speed up your journey toward financial freedom and set yourself up for long-term success.

Be Clear About Your Financial Goals

Start by defining exactly what you want to achieve. Is it paying off debt, saving for retirement, or investing in your children’s education? Clarity is key. Break your goals into smaller, actionable steps, and set realistic timelines to measure progress. A clear destination keeps you motivated and focused, making it easier to stay on track.

Set a Realistic Budget

A budget isn’t about restricting yourself; it’s about taking control of your finances. Track your income, expenses, and savings to identify areas where you can cut back. This frees up money to invest in your future. A flexible budget that adjusts with your changing circumstances ensures it remains practical and effective.

Automate Your Savings and Investments

Automating savings and investments is one of the easiest ways to stay consistent with your financial goals. Automatic transfers to your accounts eliminate the temptation to spend and ensure you’re building your wealth without added effort. Over time, even small contributions grow significantly, thanks to compounding.

Cut Back on Unnecessary Spending

Revisit your spending habits and identify areas where you can make adjustments. While small luxuries like a coffee or streaming subscription might not seem like much, mindful spending can free up more money for savings and investments. Strategic adjustments can significantly accelerate your progress toward financial freedom.

Stay Informed and Keep Learning

Financial trends and tools evolve constantly, and staying informed can help you make better decisions. Learn how inflation impacts savings, explore tax-efficient investing strategies, and understand different investment options. Whether it’s through books, webinars, or podcasts, improving your financial literacy ensures you can make smarter choices and spot opportunities for growth.

Embrace the power to be in control

Life is unpredictable, and financial protection is essential to ensure your loved ones can continue their goals even if something unexpected happens. This is where life insurance becomes invaluable. AXA Secure Future not only helps you save strategically but also provides life protection, ensuring that your family is supported financially in the event of your untimely passing.

Combining guaranteed yearly payouts from years 8 to 20 with a lump sum benefit at the end of the policy term, AXA Secure Future offers a balance of savings growth and peace of mind. It supplements your income and provides a safety net for your family, empowering you to focus on your goals without worry.

The journey to financial freedom starts with small, consistent steps. With tools like AXA Secure Future, you can stay in control of your finances while enjoying the peace of mind that comes with life protection.

To learn more about how AXA can help you achieve your goals, visit the AXA Secure Future webpage.

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Takeda, Otsuka-Solar sign MoU to raise dengue awareness in the Philippines

February 14, 2025 | 1:09 pm

Japanese Alliance Group Photo 2 — Photo by Patricia B. Mirasol

by Patricia B. Mirasol, Producer

Takeda Healthcare Philippines, Inc. and Otsuka-Solar Philippines, Inc., with the support of the Embassy of Japan in the Philippines, inked on February 6 a memorandum of understanding to raise community-based awareness on dengue.

The Japan-backed health alliance aims to empower communities in the Philippines with the knowledge and resources needed to improve health-promoting behaviors.

Dengue cases from Jan. 1 to Nov. 16, 2024 reached 340,860 nationwide, or 81% higher than the 188,574 cases logged for the same period in 2023, according to the health department.

Dengue is a viral infection transmitted to humans through the bite of infected mosquitoes. Urbanization (especially unplanned), is associated with dengue transmission through multiple social and environmental factors, including population density, human mobility, access to reliable water sources, and water storage practice.

“With the Japanese Embassy’s support, Otsuka-Solar’s expertise in hydration and wellness, and Takeda’s leadership in pharmaceutical innovation, we can empower communities through open discussions about health, which is essential in shaping better healthcare practices and disease prevention strategies,” said Loreann E. Villanueva, country manager of Takeda Healthcare Philippines, Inc.

“The campaign is initially targeting 10 communities, she said.

“We’ll make the effort to understand what some of the causes are that’s driving the high incidence of dengue in their communities,” she told BusinessWorld on the sidelines of the event. “We are going to really find a way to get insights on the communities on what the gaps are, and that’s how were going to design the initiatives accordingly.”

“Thats how we can avoid deaths and achieve the W.H.O. [World Health Organization]’s goal of zero dengue deaths by 2030,” she added.

The highest case fatality rates of dengue in the country are observed among those 9 years old and below, as well as those 60 years old and above, said Dr. Enrique A. Tayag, a public health advocate and founding member of the Philippine Foundation for Vaccination.

The challenges are multifold – from the lack of granular data to the different protocols for dengue management, he said at the Feb. 6 event.

The integration of routine vector surveillance is likewise a challenge, he said.

“Everyone does their own thing. They do it now, then they forget it the next season…,” he said. “Dengue will win if we do that. [Efforts] should be sustained. Hindi puwedeng ningas kugon lang (Our diligence shouldn’t just be short-lived).”

The Philippine health department cannot do this alone, Dr. Tayag told the event audience.

“This partnership can be a model for future collaboration among many entities,” he said.

Filipinos advised to apply for visas early

February 14, 2025 | 11:00 am

Apply for visas early, said Bernard Vijaykumar, head for North Asia & the Philippines for VFS Global.

“Waiting until the last moment not only increases the risk of delays but also exposes applicants to fraudulent entities seeking to exploit their urgency,” he added.

VFS Global helps governments and diplomatic missions with visa, passport, and consular services, but doesn’t decide whether applications are approved or denied.

Interview By Patricia Mirasol
Video editing by Jayson Mariñas

Macron says only Ukrainian President Zelenskiy can negotiate peace for his country

February 14, 2025 | 10:41 am

French President Emmanuel Macron said only Ukrainian President Volodymyr Zelenskiy could negotiate on behalf of his country with Russia to end the war, warning a “peace that is a capitulation” would be “bad news for everyone”, including the U.S., the Financial Times reported on Thursday.

“The only question at this stage is whether President Putin is genuinely, sustainably, and credibly willing to agree to a ceasefire on this basis. After that, it’s up to the Ukrainians to negotiate with Russia,” Mr. Macron said in an interview with the newspaper at the Elysee Palace.

U.S. President Donald Trump on Wednesday separately discussed the war with Russian President Vladimir Putin and Mr. Zelenskiy and told U.S. officials to begin talks on ending the nearly three-year-long conflict.

The phone calls came shortly after U.S. Defense Secretary Pete Hegseth told Ukraine’s military allies in Brussels that a return to Ukraine’s pre-2014 borders – before Russia annexed Crimea – was unrealistic and that the U.S. does not see NATO membership for Kyiv as part of a solution.

Ukrainians on Thursday worried that Trump was preparing to sell out their country following his phone call Putin.

Mr. Trump, speaking to reporters at the White House on Thursday, said Ukraine would have a seat at the table during any peace negotiations with Russia over ending the war.

Mr. Macron told the Financial Times that Trump had created a “window of opportunity” for a negotiated solution, where “everyone has to play their role”, adding that it is now up to Mr. Zelenskiy to discuss territorial and sovereignty issues.

He said “..it is up to the international community, with a specific role for the Europeans, to discuss security guarantees and, more broadly, the security framework for the entire region. That is where we have a role to play.”

Mr. Macron described Mr. Trump’s return as an “electroshock” that should force Europe to secure its own future as well as Ukraine’s, the Financial Times report added.

Separately, Mr. Macron said to the newspaper that expelling Gazans would be “extremely dangerous”, adding that Trump’s designs on Gaza and Greenland were examples of the “extreme strategic uncertainty” the world was now living in.

The commentary is aimed at Trump’s shock announcement that the U.S. intends to remove Gaza residents and transform the war-ravaged territory into what the president billed as a “Riviera of the Middle East”. He had also said he wants to take over the Panama Canal and Greenland.

Mr. Macron reiterated that Europe should build its defence capabilities so it can act even when the U.S. is not involved.

“We must also develop a fully integrated European defence, industrial and technological base,” Mr. Macron said.

In January, at a joint news conference with German Chancellor Olaf Scholz in Paris, Mr. Macron said: “After the inauguration of a new administration in the United States, it is necessary more than ever for Europeans and for our two (France and Germany) countries to play their role of consolidating a united, strong and sovereign Europe.” – Reuters

US government begins wave of mass firings as Trump, Musk purge federal workers

February 14, 2025 | 10:39 am

business-8459380_1280 — STOCK IMAGE | Image by Mohamed Hassan from Pixabay

WASHINGTON – The U.S. government began firing hundreds of people at multiple agencies on Thursday as President Donald Trump and Elon Musk accelerate their purge of America’s federal bureaucracy, union sources and employees familiar with the moves told Reuters.

Termination emails have been sent in the past 48 hours to government workers, mostly recently hired employees still on probation, at the Department of Education, the Small Business Administration, the Consumer Financial Protection Bureau, and the General Services Administration, which manages many federal buildings.

It was not immediately clear how many domestic federal workers stood to lose their jobs in the first wave of layoffs. According to government data, about 280,000 civilian government workers were hired less than two years ago with most still on probation, which makes them easier to fire.

Firings at the U.S. Consumer Financial Protection Bureau appeared to be going beyond probationary employees.

Notices went to dozens of term employees, full-time workers who have contracts with end dates, said sources who requested anonymity to avoid any reprisal.

Reuters could not immediately ascertain the extent of the firings. The new round of firings comes after the consumer protection agency on Tuesday terminated as many as 70 probationary staff members.

Meanwhile, all probationary staff at the Office of Personnel Management, the human resources arm for the U.S. government, were fired in a group call on Thursday and told to leave the agency’s headquarters in Washington, two sources said.

OPM officials also met with other government agencies on Thursday and advised them to lay off their probationary employees, with some exceptions, according to a person familiar with the matter.

LEGAL CHALLENGES

Even as the firings commenced, a group of 14 states filed a federal lawsuit in Washington alleging that Mr. Trump appointed Mr. Musk illegally, giving him “unchecked legal authority” without authorization from the U.S. Congress.

Most civil service employees can be fired legally only for bad performance or misconduct, and they have a host of due process and appeal rights if they are let go arbitrarily. The probationary employees targeted in Thursday’s wave have fewer legal protections.

Mr. Trump and Mr. Musk’s overhaul of the federal government appeared to be widening as Mr. Musk aides arrived for the first time at the federal tax-collecting agency, the Internal Revenue Service, and U.S. embassies were told to prepare for staff cuts.

Mr. Trump has defended the effort, saying the federal government is too bloated and that too much money is lost to waste and fraud. The federal government has some $36 trillion in debt and ran a $1.8 trillion deficit last year, and there is bipartisan agreement on the need for government reform. But critics have questioned the blunt force approach of Mr. Musk, who has amassed extraordinary influence in Trump’s presidency.

‘YOU ARE NOT FIT’

Thursday’s moves fulfill Mr. Trump’s vow to reduce the size of the federal government and root out the “deep state,” a reference to bureaucrats he views as not sufficiently loyal to him.

“The Agency finds that you are not fit for continued employment because your ability, knowledge and skills do not fit the current needs, and your performance has not been adequate to justify further employment with the Agency,” letters sent to at least 45 probationers at the SBA stated.

Reuters has seen a copy of the termination letter.

Letters to at least 160 recent hires at the Department of Education, also seen by Reuters, told them that their continued employment “would not be in the public interest.”

Mr. Trump, a Republican serving his second term, on Wednesday reiterated his desire to close the Department of Education.

About 100 probationary employees received termination letters on Wednesday at the GSA, according to two people familiar with the firings.

One GSA employee, who said he had one month left until his probation period ended and had been receiving excellent performance reviews, was told this week he will be fired on Friday.

“Up until two weeks ago, this was an absolute dream job. Now it’s become an absolute nightmare because of what is going on. I have small children and a mortgage to pay,” the worker told Reuters.

Mr. Musk’s cost-cutting Department of Government Efficiency, or DOGE, did not respond to a request for comment, but a spokesperson for OPM said the firings were in line with new government policy.

“The Trump administration is encouraging agencies to use the probationary period as it was intended: as a continuation of the job application process, not an entitlement for permanent employment,” the spokesperson said.

About 75,000 workers have signed up for the buyout, White House press secretary Karoline Leavitt told reporters. That is equal to 3% of the civilian workforce.

Mr. Trump has tasked the South Africa-born Musk and his team at DOGE, a temporary government agency, to undertake a massive downsizing of the 2.3 million-strong civilian federal workforce.

Mr. Musk, the world’s richest person, has sent DOGE members into at least 16 government agencies, where they have gained access to computer systems with sensitive personnel and financial information, and sent workers home.

Gavin Kliger, a top staffer in DOGE, arrived at a new agency, the IRS, on Thursday, people familiar with the matter said.

It was the first time a Musk aide has entered the IRS, a longtime target of Republicans who claim without evidence that the Biden administration weaponized the agency to target small businesses and middle-class Americans with unnecessary audits. – Reuters

TikTok returns on Apple, Google app stores as Trump delays ban

February 14, 2025 | 10:34 am

STOCK PHOTO | Image by amrothman from Pixabay

TikTok returned on the U.S. app stores of Apple and Google on Thursday, as President Donald Trump delayed its ban until April 5 and assured the companies they would not be fined for distributing or maintaining the Chinese app.

The popular short video app, used by 170 million American users, started restoring its services, weeks after the app went dark, as Trump assured to revive its access prior to his inauguration.

Tiktok did not immediately respond to a Reuters request for comment.

Mr. Trump’s executive order last month delayed the ban of TikTok for 75 days, allowing China’s ByteDance-owned company to continue its operations in the U.S. temporarily.

The companies, which run mobile application stores or digital marketplaces where users can browse, download and update apps, would not face penalties for keeping the TikTok app up and running, the directive said.

TikTok was the second most downloaded app in the U.S., with more than 52 million downloads in 2024, according to market intelligence firm Sensor Tower.

About 52% of TikTok’s total downloads were from Apple App Store, while 48% were from Google Play in the U.S. last year, Sensor Tower said. – Reuters

Taiwan president to meet senior officials on US tariffs, sources say

February 14, 2025 | 10:31 am

TAIPEI – Taiwan President Lai Ching-te will hold a meeting of the National Security Council on Friday to discuss possible new U.S. tariffs as well as broader relations with the United States, two sources familiar with matter told Reuters.

The presidential office declined to comment. The council is composed of senior ministers and other officials and is convened to discuss major issues.

U.S. President Donald Trump tasked his economics team on Thursday with devising plans for reciprocal tariffs on every country taxing U.S. imports, ramping up prospects for a global trade war with American friends and foes.

Mr. Trump has threatened specifically to put tariffs on imported semiconductors, which could threaten Taiwan’s economy given the island’s major role in producing chips used in everything from cars to AI servers.

Mr. Trump spoke critically about Taiwan on Thursday, telling reporters at the White House he aimed to restore U.S. manufacturing of semiconductor chips.

“We have to have chips made in this country. Right now, everything’s made in Taiwan practically, almost all of it. A little bit in South Korea,” he said.

Mr. Trump said U.S. companies had made semiconductors before moving overseas.

“Taiwan took our chip business away. We had Intel. We have these great companies that did so well and it was taken from us. And we want that business back. We want it back in the United States. And if they don’t bring it back, we’re not going to be very happy.”

Taiwan is home to the world’s largest contract chipmaker, TSMC, a major supplier to companies including Apple and Nvidia.

Taiwan also runs a large trade surplus with the United States, which surged 83% last year, with the island’s exports to the U.S. hitting a record $111.4 billion, driven by demand for high-tech products such as semiconductors. – Reuters

China ready to continue improving ties, deepen cooperation with UK

February 14, 2025 | 10:29 am

FILE PHOTO: 10th trilateral foreign ministers' meeting in Busan — FILE PHOTO: Chinese Foreign Minister Wang Yi speaks during the 10th trilateral foreign ministers' meeting in Busan, South Korea, Sunday, Nov. 26, 2023. -- Ahn Young-joon/Pool via REUTERS/File Photo

LONDON/BEIJING – China is ready to work with the United Kingdom towards stable and improving bilateral ties, and to further cooperate in infrastructure, trade and investment, the Chinese foreign ministry said in a statement on Friday, citing its minister.

Wang Yi made his first official visit to Britain on Thursday for the first time in a decade where he held talks with the prime minister, foreign minister and national security adviser.

In his meeting with Prime Minister Keir Starmer, Wang said China and the UK need to strengthen strategic communication, enhance mutual trust and demonstrate responsibility as major countries.

“The recent China-UK financial dialogue has achieved fruitful results, and exchanges at all levels have been resumed, demonstrating the great potential of practical cooperation between the two countries,” Wang said, referring to an economic and financial dialogue between the two nations in Beijing last month.

The Labour government, in power in Britain since July, has made improving ties with China one of its main foreign policy goals, after a period when relations plunged to their lowest level in decades under successive Conservative governments.

Mr. Starmer told Mr. Wang he wanted “consistent and respectful” relations between their countries, when he dropped in on the planned meeting between Wang and his National Security Adviser Jonathan Powell, Mr. Starmer’s spokesman told reporters.

“He underlined his intention to build a consistent and respectful relationship between the UK and China … including deepening cooperation on trade, investment and other areas of mutual benefit,” the spokesman said.

“He reiterated that the UK will always engage frankly on areas where our views differ, as part of the stable and regular engagement this government is committed to maintaining with China.”

They also discussed strengthening cooperation in dealing with climate change, artificial intelligence and clean energy, according to the Chinese readout.

Both nations agreed on next-step bilateral exchanges and cooperation, and will speed up preparations for institutional dialogues on the economy and trade, health and industrial cooperation, the Chinese ministry said.

British foreign minister David Lammy said he discussed with Wang international security, the war in Ukraine and Middle East.

But Mr. Lammy said he would continue to challenge China on the imprisonment of pro-democracy Hong Kong tycoon Jimmy Lai, human rights and the sanctioning of British parliamentarians.

Wang “comprehensively” explained China’s position on the Ukraine war, and called for “no expansion of the battlefields, no escalation of hostilities, and no fanning flames”, according to official news agency Xinhua.

It cited Mr. Wang as saying China welcomes all efforts committed to peace talks and supports building a “balanced, effective and sustainable European security architecture”. – Reuters

Philippines held rates steady to hedge against uncertainty – Remolona

February 14, 2025 | 10:25 am

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

MANILA (UPDATE) – The Philippine central bank’s decision to keep its key policy rate steady was its way of hedging against global uncertainties, its governor said on Friday.

The Bangko Sentral ng Pilipinas unexpectedly kept its key interest rate steady on Thursday, citing uncertainties over global trade policies, but said rate cuts of at least 50 basis points were still likely this year.
Speaking to CNBC, Governor Eli Remolona said the central bank did not want to put itself in a situation where it would have to reverse itself.

“The uncertainty itself about what’s going on is a factor. And so we thought we needed more time to deepen our analysis,” Mr. Remolona said.

“We’re hedging so that we don’t find ourselves in a situation where we have to reverse ourselves. We want to stay on an easing trajectory,” he said.

In a separate interview with Cathy Yang on One News TV, Mr. Remolona said pausing now would be “less disruptive to the markets” than easing and making a U-turn later. “It was a complicated decision,” he said.

US President Donald Trump tasked his economics team on Thursday with devising plans for reciprocal tariffs on every country taxing U.S. imports, escalating the risk of a multi-front trade war, and fuelling inflation concerns that could influence global policymakers’ rate decisions.

“We’re going to be comparing notes with other central banks, but we should have a better understanding of what’s going on by the time of the next policy meeting,” Mr. Remolona said.

While shifts in U.S. trade policy will have only a “fairly modest” direct impact on the Philippine economy, the central bank is more concerned about the “indirect spillover effects” from global economic disruptions, Mr. Remolona said.

The Philippines, which remains largely dependent on domestic consumption to fuel economic growth, expanded less than expected in the last quarter of last year. It has widened its growth target for 2025 to a range of 6.0% to 8.0%, from 6.5% to 7.5% to account for what it said were evolving global uncertainties.

The BSP will again review monetary policy on April 3. — Reuters

Trump outlines reciprocal tariff plan in latest bid to reshape trade on his terms

February 14, 2025 | 10:23 am

WASHINGTON – U.S. President Donald Trump tasked his economics team on Thursday with devising plans for reciprocal tariffs on every country taxing U.S. imports, ramping up prospects for a global trade war with American friends and foes.

“On trade, I have decided for purposes of fairness, that I will charge a reciprocal tariff, meaning whatever countries charge the United States of America, we will charge them. No more, no less,” Trump told reporters in the Oval Office.

Trump signed a memo ordering his team to start calculating duties to match those other countries charge and to counteract non-tariff barriers such as vehicle safety rules that exclude U.S. autos and value-added taxes that increase their cost.

Thursday’s directive stopped short of imposing fresh tariffs, instead kicking off what could be weeks or months of investigation into the levies imposed on U.S. goods by other trading partners and then devising a response.

Targets include China, Japan, South Korea and the European Union. The Republican president’s latest round of market-rattling tariffs has ratcheted up fears of a widening global trade war and threatened to accelerate U.S. inflation.

Wall Street – anxious that tariffs may add to inflation and keep the Federal Reserve from cutting interest rates further – breathed a sigh of relief, for the moment, with U.S. stocks adding to the day’s gains. A gauge of global stocks touched a record high, and yields on U.S. Treasury securities fell.

Howard Lutnick, Trump’s pick for Commerce secretary, said the administration would address each affected country one by one and said studies on the issue would be completed by April 1. That is also the deadline Trump set on his first day in office for Lutnick and other economic advisers to report to him with plans to reduce the chronic trade imbalances that Trump sees as a U.S. subsidy to other countries.

Trump, who campaigned on a pledge to bring down consumer prices, said prices could go up in the short term as a result of the moves. “Tariffs are great,” he said.

A White House official, who spoke to reporters before Trump’s event in the Oval Office, said the administration would study countries with the biggest trade surpluses and highest tariff rates first.

Trump’s tariffs would match the higher duties charged by other countries, he said, and would aim to counteract burdensome regulations, value-added taxes, government subsidies and exchange rate policies that can erect barriers to the flow of U.S. products to foreign markets.

“They effectively don’t let us do business. So we’re going to put a number on that that is a fair number. We’re able to accurately determine the cost of these non-monetary trade barriers,” Trump said.

OPEN TO TALKS
The broad announcement appeared designed at least in part to trigger talks with other countries. The White House official said Trump would gladly lower tariffs if other countries lowered theirs. The new tariffs would avoid a “one size fits all” approach for more customized levies, he said, though he did not rule out a flat global tariff.

“It’s a relief that the administration isn’t rushing to impose new tariffs, and we welcome the president taking a more nuanced, inter-agency approach,” said Tiffany Smith, vice president for global trade at the National Foreign Trade Council. “Ideally, this process will result in us working with our trading partners to lower their tariffs and trade barriers as opposed to increasing our own.”

Trump, who took office on Jan. 20, has already announced tariffs on all steel and aluminum imports beginning on March 12, imposed 10% tariffs on goods from China, and put a 30-day hold on planned tariffs on goods from neighboring Canada and Mexico.

Trump said on Monday he was also looking at separate tariffs on cars, semiconductors and pharmaceuticals. On Thursday he said car tariffs would be coming soon.

“This is beyond negotiation. It’s to be taken very seriously,” said Josh Lipsky, director of the Atlantic Council’s GeoEconomics Center and a former adviser to the International Monetary Fund who also served in the Obama White House.

“I do think every country has been put on notice. And if you were going to implement reciprocal tariffs on the scale he’s talking about, this is actually how you would go about it,” he said.

Indian Prime Minister Narendra Modi, who was in Washington to meet with Trump, oversees a government that imposes the highest tariffs on U.S. exports of any major U.S. trading partner. Trump acknowledged as much on Thursday.

Trade experts say structuring the reciprocal tariffs that Trump wants poses big challenges for his team, which may explain why the latest duties were not announced earlier in the week.

Experts say Trump could turn to several statutes, including Section 122 of the Trade Act of 1974, which would only allow a flat rate maximum of 15% for six months, or Section 338 of the Tariff Act of 1930, which provides authority to act against trade discrimination that disadvantages U.S. commerce, but has never been used.

Trump also could use the same International Emergency Economic Powers Act used to justify the tariffs imposed on China and pending for Canada and Mexico.

The White House official said that measure and others could be used.

“Absent IEEPA, there would need to be some kind of agency action first before any trade remedy tariffs can be imposed … but everything seems to be on the fast track,” said Damon Pike, a trade specialist and principal with the U.S. division of accounting firm BDO International, adding that normally tariffs would be done by Congress. — Reuters

Setting the standard in the infrastructure industry: Quantity Solutions, Inc. achieves ISO 37001 certification

February 14, 2025 | 9:55 am

Quantity Solutions, Inc. has set a benchmark for the infrastructure industry by achieving the esteemed ISO 37001:2016 certification for its Anti-Bribery Management System. Granted by SGS Philippines on Dec. 10, 2024, this certification exemplifies the company’s steadfast dedication to maintaining the highest ethical standards across all facets of its operations.

Accomplishing this milestone was a key focus for Quantity Solutions, Inc., over the past year, reflecting their dedication in fostering a culture of integrity and transparency within their organization. Quantity Solutions, Inc.’s rigorous preparation and determination to meet the stringent requirements of ISO 37001:2016 demonstrate the firm’s commitment to ethical excellence and their resolve to lead by example in the industry.

At Quantity Solutions, Inc., trust is the cornerstone of every successful partnership. In an industry, where collaboration and mutual confidence are essential, they recognize that maintaining the highest ethical standards is not just a responsibility but a commitment to their clients, partners, and the communities they serve.

Achieving ISO 37001:2016 certification is a significant milestone that underscores unwavering dedication to ethical business practices. This certification is more than just a recognition; it is a testament to a proactive approach in preventing, detecting, and addressing any form of bribery or corruption within its operations by adhering to the global standard, they ensure that their business practices are transparent, accountable, and aligned with the best practices in corporate governance.

This milestone is a reminder of Quantity Solutions, Inc.’s pledge to deliver, not only exceptional engineering solutions, but also to uphold the principles of fairness and integrity throughout its organization.

Learn more: www.quantitysolution.com.

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