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Monetary policy still viable in ‘tokenized’ system, project shows

NEW YORK — Central banks should still be able to conduct monetary policy effectively and perhaps be even nimbler in a more decentralized financial system, according to the findings of a joint report released on Wednesday by the New York Federal Reserve and the Bank for International Settlements.

The report said a prototype system designed to conduct monetary policy in a financial system reliant on new, more automated systems “successfully responded and instantaneously carried out the intended operation under the varying market conditions, consistent with the central bank’s desired liquidity environment.”

The prototype created for the study showed there’s even the possibility of central bank monetary policy working even better under a decentralized financial system. The project came out of work done by the New York Fed’s Innovation Center and the Bank for International Settlements’ Innovation Hub, as part of the Project Pine effort.

“Central banks could use smart contracts to easily and quickly create new facilities or adjust existing ones to optimize the implementation of monetary policy in a tokenized environment,” which means future operations could be “nimbler in uncertain conditions and potentially reduce frictions between the time of announcements and offerings,” the report said.

Tokenization refers to assets with digital tokens on a blockchain.

The report noted that the research was conducted in conjunction with inputs from a number of central banks and its setup was generically oriented rather than tailored to the operations and goals of a particular central bank. The project was undertaken as part of preparatory efforts to make sure central banks will be ready for any future changes in financial markets.

The prototype system covered by the report is designed to perform most of the key technical functions that monetary policy does now to achieve central bank policy goals.

While there is no current threat to how central banks now intervene in markets to set interest rates and manage market liquidity, rising decentralizations and new technologies, some of which are in use already, could change that at some point.

“If the private financial sector adopts tokenization on a broad scale in wholesale markets, central banks may need to participate in novel financial market infrastructures and interact with digital tokens to continue effectively implementing monetary policy,” the report said.

Decentralized financial systems could also create “emerging challenges” for money created by the central bank, the report said. In terms of central bank operational issues “the additional complexity of central bank operations has increased incentives to use technology to automate tasks and processes.” At the same time, “central banks still face a challenge in integrating automated processes with those that require human judgment.” — Reuters

Letter to the Editor

WHO.INT

Dear Editor:

The 78th World Health Assembly (WHA), the most important annual forum on global health, will take place from May 19-27, 2025, in Geneva, Switzerland. Despite Taiwan’s significant public health expertise and advanced technology, which bring considerable value to the world, Taiwan remains excluded from the international health system due to China’s obstruction.

Taiwan is able and willing to contribute to the international community. During COVID-19, Taiwan demonstrated its commitment to public health as well as the reliability of its epidemic prevention system. Separately, Taiwan has accumulated a great deal of experience and best practices in international medical assistance. For years, Taiwan has donated critical medical supplies and offered up-to-date and intensive training to medical personnel of partner countries, including the Philippines. Such efforts highlight Taiwan’s advanced public health system and medical capacity.

Take diabetes, one of the major causes of death in the Philippines, for example. Taiwan has continued to invest in the prevention, screening, early diagnosis, intervention, and self-health management of the disease. By helping its diplomatic allies to improve local primary healthcare, medical service capacity and public health education, Taiwan has increased resilience around the world to better prevent and control diabetes, among other noncommunicable diseases.

Furthermore, Taiwan possesses advanced medical capabilities and extensive experience with providing humanitarian aid and international disaster relief. Over the past decades, Taiwan has continued to provide humanitarian assistance and disaster relief aid to the Philippines, including a recent case in October 2024, donating 500 tons of rice, relief goods and $150,000 to help the affected areas recover after tropical storm Trami hit severely the Philippines.

Taiwan’s isolation from the WHA is not only unjustified but also undermines global public health. By excluding Taiwan, the World Health Organization (WHO) has severely jeopardized the right to health of the 23.5 million people of Taiwan. Regrettably, WHO’s stance even undermines its own efforts to make global health architecture more comprehensive. This hinders global prevention, preparedness, and response to health emergencies.

China is using its distortion of United Nations General Assembly (UNGA) Resolution 2758 and WHA Resolution 25.1 as a way to exclude Taiwan from the WHO and its related technical meetings and mechanisms, including WHA. In fact, neither UNGA Resolution 2758 nor WHA Resolution 25.1 can justify Taiwan’s exclusion from WHO. These resolutions do not mention Taiwan, nor do they authorize the People’s Republic of China (PRC) to represent Taiwan at the UN or its subsidiary bodies. These resolutions have nothing to do with Taiwan and do not address the issue of Taiwan’s representation in the UN. Only Taiwan’s democratically elected government can represent the people of Taiwan in international organizations.

We urge WHO and all relevant parties to recognize Taiwan’s considerable contributions to global public health and the human right to health. It is imperative that WHO adopt a more open-minded approach and demonstrate flexibility, adhering to the principles of professionalism and inclusivity.

With geographic proximity and cultural closeness, Taiwan and the Philippines are natural partners and friends. While Taiwanese people cherish the spirit of sharing and caring, Filipinos value the tradition of Bayanihan, a way of life that fosters unity, trust and support. Therefore, I use this blend word “Taiwanihan” to demonstrate the strong ties between Taiwan and the Philippines, as well as the shared values of our two countries in the spirits of helping one another. Please join us in supporting Taiwan’s participation in the WHA, so that Taiwan can continue to help and contribute to the world.

Amb. Wallace Minn-Gan Chow
Representative
Taipei Economic and Cultural Office
in the Philippines

FATF ‘gray list’ exit: benefits and issues

The financial community welcomed the recent news that the Financial Action Task Force (FATF) removed the Philippines from its money laundering “gray list.” The benefits of this development are definitely welcome, but we also need to be aware that there are concerns raised by civil society organizations (CSOs) on allegations of state overreach in the counter-financing of terrorism (CFT) enforcement

The FATF, an international policy-making body, monitors global efforts to combat financial crimes. When a country is gray-listed, it means the FATF recognizes that jurisdiction’s commitment to addressing deficiencies but also notes that the existing measures are inadequate or not effectively implemented. For the Philippines, its gray list inclusion stemmed from concerns over its capacity to prevent illicit financial flows, enforce regulations, and prosecute financial crimes effectively.

The Philippines was first gray-listed in the year 2000, and then again in June 2021. The reasons for this included the weak implementation of the Anti-Money Laundering Act (AMLA), lack of effective supervision of designated nonfinancial businesses and professions, insufficient beneficial ownership transparency, and poor prosecution and conviction rates in money laundering cases. While the Philippines had a legal framework in place, its enforcement, monitoring, and risk-based supervision mechanisms were lagging.

To be removed from the gray list, several reforms were implemented. The AMLA was amended in January 2021 to strengthen the Anti-Money Laundering Council’s powers. This included the authority to impose sanctions, conduct more rigorous investigations, and enforce the submission of suspicious transaction reports. The Philippines increased efforts in registering beneficial owners of corporations, thereby reducing the risks of shell companies being used for illicit finance.

Another key development was the tighter supervision of sectors vulnerable to money laundering, such as casinos, real estate, and legal professionals. The country also committed to improving its capacity to investigate and prosecute complex financial crimes. Law enforcement agencies were trained further, and inter-agency cooperation was enhanced to support a whole-of-government approach. Additionally, the country worked closely with international partners to track cross-border financial flows and recover assets linked to criminal activity.

The benefits are significant. First, being removed from the gray list helps restore international confidence in the Philippines’ financial system. Foreign investors and financial institutions are wary of engaging with countries that are under increased FATF monitoring as this could drive up risk and compliance costs. Delisting therefore improves the country’s investment climate and facilitates smoother international financial transactions. It also helps Philippine banks retain and expand correspondent banking relationships, which are crucial for global trade and remittances.

On a broader level, strengthening the Philippines’ anti-money laundering and counter-terrorism financing framework contributes to national security and good governance. It enables the government to better detect corruption, tax evasion, and other illicit activities, leading to improved public trust and institutional integrity.

A counterpoint to this good news, however, are allegations that “the government has weaponized targeted financial sanctions and the criminalization of terrorism financing against development workers, human right defenders, and CSOs as retaliation for their outspoken criticism of anti-people policies and their advocacy for economic, social and cultural rights.” Some critics argue that the implementation of such laws may have been used to suppress dissent, criminalize activism, and restrict civic space.

These critics raise valid points, especially considering broader global concern about how anti-terrorism laws can be misused. The passage of the Anti-Terrorism Act of 2020 and related enforcement actions under the CFT framework have been accompanied by allegations of “red-tagging” — labeling individuals or organizations as communist sympathizers or terrorists without due process. Some CSOs have reported frozen bank accounts, surveillance, and administrative burdens that hinder legitimate operations. These actions, critics argue, create a chilling effect, undermining democratic participation and the role of civil society in holding governments accountable.

International standards — such as those of the FATF — emphasize the importance of ensuring that CFT regulations do not undermine fundamental freedoms. The FATF Recommendation 8, for example, calls for a proportionate, risk-based approach to regulating nonprofit organizations, to avoid unnecessarily disrupting legitimate charitable activities.

Whether these issues diminish the accomplishment of being removed from the FATF gray list depends on perspective. From a purely technical standpoint, the Philippines’ progress may still be considered a success. However, if the measures used to achieve this progress violate civil liberties or disproportionately target non-threatening entities, it raises ethical and governance concerns. It also poses a reputational risk: international partners and watchdogs may question the integrity of reforms that are perceived to harm democratic space.

Ensuring that CFT enforcement respects civil liberties is not only a moral imperative but also essential to the long-term credibility and sustainability of the country’s financial and democratic institutions. A more nuanced and risk-sensitive approach to monitoring nonprofit organizations should be developed, differentiating between those that are high-risk and those engaged in legitimate, lawful advocacy or humanitarian work.

While the Philippines deserves recognition for the technical and institutional improvements that contributed to its removal from the FATF gray list, the allegations of state overreach cannot be ignored. They highlight the need to strike a careful balance between security and human rights. The government should commit to transparency, ensure due process in investigations, and consider the role of civil society in the implementation of CFT regulations.

The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX.

 

Benel Dela Paz Lagua was previously EVP and Chief Development Officer at the Development Bank of the Philippines. He is an active FINEX member and an advocate of risk-based lending for SMEs. Today, he is independent director in progressive banks and in some NGOs.

Total Approved Investment Pledges

APPROVED foreign investments in the Philippines slumped further by 82% in the first quarter to the lowest in one-and-a-half years, according to the local statistics agency, as US President Donald J. Trump tries to undo decades of global economic integration through his sweeping tariff increases. Read the full story.

Total Approved Investment Pledges

Sean ‘Diddy’ Combs’ ex-girlfriend says he raped her, paid $20 million in settlement

Sean “Diddy” Combs on the talk show Late Night with Seth Myers. — IMDB

NEW YORK — Sean “Diddy” Combs’ ex-girlfriend Casandra Ventura testified on Wednesday that the hip-hop mogul raped her in 2018 after they ended their more than decade-long relationship.

Ms. Ventura, a rhythm and blues singer known as Cassie, also said Mr. Combs agreed to a $20-million settlement to end her November 2023 civil lawsuit against him over their relationship, with the deal coming 24 hours after she filed the case.

The disclosures came on the third day of Mr. Combs’ criminal trial, where the 55-year-old rapper has pleaded not guilty to five felony counts of racketeering conspiracy, sex trafficking and transportation to engage in prostitution.

If convicted on all counts, Mr. Combs would face a minimum of 15 years in prison and could face life behind bars.

Ms. Ventura, 38, fought back tears as she described Mr. Combs’ allegedly raping her in her living room.

“I just remember crying and saying no but it was very fast,” she said, as her voice trailed off.

Ms. Ventura said that she sued Mr. Combs nine months after undergoing rehabilitation and trauma therapy prompted by “horrible flashbacks,” and that she “didn’t want to be alive” by the time she sought help.

Asked why she decided to testify against Mr. Combs, Ms. Ventura said she could no longer bear the emotional burden of years of his physical and emotional abuse.

“I can’t carry this anymore,” Ms. Ventura said. “I can’t carry the shame, the guilt, the way he treated people like they were disposable. What’s right is right, what’s wrong is wrong. I came here to do the right thing.”

Lawyers for Mr. Combs will begin their cross-examination of Ms. Ventura on Thursday, and it may last two days.

The lawyers have signaled they will ask Ms. Ventura about what they have called her own history of domestic violence.

Mr. Combs’ trial could take up to two months.

FREAK OFFS
Ms. Ventura is the prosecution’s star witness against Mr. Combs, and wore a turtleneck dress and dark jacket for her second day of testimony.

Mr. Combs wore a cream-colored sweater and white-collared shirt, with his mother and at least two children looking on.

Ms. Ventura testified that Mr. Combs beat her during drug-fueled sex parties known as “Freak Offs,” and that he threatened to release videos of her taking part and warned he would ruin her career.

“He would grab me up, push me down, hit me in the side of the head, kick me,” Ms. Ventura recalled.

Ms. Ventura said Mr. Combs was dismissive after she showed him a photo of a gash on her eyebrow that she said he gave her in 2013 by throwing her against a bed frame.

“You. Don’t know. When to. Stop,” Ms. Ventura said Mr. Combs told her. “You have pushed it too far and continue to push. Sad.”

Prosecutors showed jurors seven still photos of Ms. Ventura and various escorts that were taken from videos of “Freak Offs.”

One juror swallowed hard upon seeing one image, and another jerked his head back.

The photos were not shown to spectators or the press. US District Judge Arun Subramanian, who oversees the trial, denied Reuters and other media limited access to the photos and videos.

‘NOBODY SHOULD DO THAT’
Jurors were shown photos that Ms. Ventura’s mother once took of Ms. Ventura, where she sported bruises on the back and leg from having been kicked by Mr. Combs.

Ms. Ventura told jurors that fighting back against Mr. Combs sometimes slowed him down, but usually made the abuse worse.

“It would just make him more violent, make him stronger, make him want to push me harder,” Ms. Ventura said.

“He said that it would ruin everything that I had worked for, that it would make me look like a slut. That I would be shamed,” Ms. Ventura added. “Nobody should do that to anyone.”

Ms. Ventura acknowledged having herself initiated physical violence against Mr. Combs, but said she didn’t see any injuries.

She said she was heavily dependent on opiates during her relationship with Mr. Combs.

By the time they broke up, she said she experienced episodes of post-traumatic stress disorder, sleepwalking and blackouts.

Ms. Ventura said she stopped doing drugs in 2022. She is pregnant with her third child.

Mr. Combs is being jailed in Brooklyn when not in court.

Also known during his career as Puff Daddy and P. Diddy, Mr. Combs founded Bad Boy Records and is credited with helping turn artists like Mary J. Blige, Faith Evans, Notorious B.I.G., and Usher into stars in the 1990s and 2000s.

Mr. Combs also faces dozens of civil lawsuits by women and men who accuse him of sexual abuse. He has denied wrongdoing, and said his relationships were consensual. — Reuters

Transforming labor-management relations

It is essential to incorporate the perspectives of global thought leaders to enrich our understanding of labor-management dynamics in the Philippines. In this article, we explore key insights from Dr. Manuel Muñiz, Provost of IE University in Madrid, one of Europe’s premier institutions for business and public policy education.

With this in mind, allow me to deviate from our format of answering reader questions so we can compare notes with Dr. Muñiz, a former Spanish Secretary of State. But first, a disclaimer.

IE made me the first Filipino to win the Prize for Asian Economic Journalism in 2022, in recognition for more than 1,600 articles that I’ve written in this space since 1993. This includes the article “What’s the Best Employee Feedback Mechanism?” which was cited by IE during the award.

IE (formerly Instituto de Empresa) consistently ranks among the top business schools for its MBA and special master’s programs. In 2024, the Financial Times ranked IE’s MBA in the top 30 globally, while the QS Global MBA Rankings put it in the top 10 to 15 programs in Europe and top 40 globally.

IE’s point of view allows for critical reflection on entrenched practices, fresh theoretical insights, and innovative policy recommendations that are grounded in global standards while adaptable to local realities.

CRITICAL REFLECTION
With experience in analyzing management systems across diverse contexts, Dr. Muñiz can identify patterns, best practices, and pitfalls that may not be visible from within the local framework. Here are the key insights of Dr. Muñiz on five major issues:

​One, improving labor-management relations. The key “lies in fostering a culture of empowerment and participatory decision-making, ensuring the inclusion of all workers while promoting open communication, skills development, and merit-based leadership, leading to better collaboration and higher productivity.

​“A possible policy recommendation would be to implement leadership training programs focused on emotional intelligence, ethical decision-making, and collaborative management.”   

​Two, sharing of productivity gains. Any cost savings achieved (done through kaizen or any continuous improvement efforts) can serve as a reward that all employees may benefit from in one way or another. A win-win solution requires the creation of an incentive-based system, where employees feel that their contributions to productivity improvement are recognized and rewarded for enhancing decision-making processes.

“Employers who make better decisions based on these ideas can also receive bonuses for their productivity gains. This would increase trust in the system and encourage everyone to collaborate. From a public policy perspective, tax incentives could be offered to companies that adopt profit-sharing models, thus promoting a more equitable distribution of earnings.”

​Three, ideas for minimum wage-fixing. One of the most divisive and pressing issues in labor relations is minimum wage fixing. One “sustainable solution could be to shift from a fixed minimum wage model to a dynamic living wage system, where salaries adjust automatically based on inflation, economic growth, and cost-of-living indices.

“This could be facilitated by AI-driven economic models, enabling wage boards to make real-time, data-based decisions that better reflect current economic conditions. Additionally, the government could experiment with pilot programs for universal basic income or tax credits for low-income workers, providing a safety net that complements wage adjustments.”

Four, harnessing Artificial Intelligence (AI). “Both AI and data analysis can assist in collective bargaining negotiations by processing large volumes of historical data on wage trends, economic conditions, and political developments to accurately predict potential worker demands and management counterproposals.”

“Additionally, machine learning models can simulate various economic scenarios, allowing both unions and management to negotiate based on data-driven insights rather than assumptions. However, AI should be used as a decision-support tool, not a substitute for human judgment, as negotiations involve complex social and emotional factors that technology cannot fully capture.”

Five, ending the endo and related 5-5-5 schemes. “A win-win solution involves transitioning from short-term subcontracting to flexible yet secure employment models. One effective strategy could be the adoption of portable benefits systems, allowing workers to accumulate entitlements such as healthcare and retirement funds regardless of employer changes.

“Another possible approach is to incentivize long-term employment by offering tax reductions to companies that convert a higher percentage of temporary workers into regular employees. Moreover, sector-wide agreements, in which entire industries establish common labor standards, could help reduce reliance on the endo system while maintaining global competitiveness.”

TRIPARTISM
These ideas require the collaboration of all stakeholders under the age-old principle of tripartism, which is deeply rooted in the Labor Code (Presidential Decree No. 442), and reinforced by the Labor and Employment Tripartism Act (Republic Act No. 10395) that created the National Tripartite Industrial Peace Council and Tripartite Industrial Peace Councils.

Tripartism is a key tool for social dialogue and labor governance, aligning the interests of the state, employers, and workers to achieve equitable and sustainable development. Tripartism is not unique to the Philippines; it is an internationally recognized labor governance model led by the International Labor Organization.

Unlike other versions, the Philippine tripartism model is exceptionally notable for being constitutionally enshrined and relatively well-institutionalized. Let’s not waste that vision. It may not be easy. But that should not mean we must not try. It’s better than rehashing the old zero-sum arguments of the stakeholders.

 

Bring Rey Elbo’s popular leadership program Superior Subordinate Supervision to your organization. For details, e-mail elbonomics@gmail.com or via https://reyelbo.com.

PCC approves GCash acquisition of ECPay

GLOBE Telecom, Inc. has secured the approval of the Philippine Competition Commission (PCC) for the sale of its stake in Electronic Commerce Payments, Inc. (ECPay) to the parent company of the electronic wallet platform GCash.

“We received a certification from the Philippine Competition Commission allowing the transaction to proceed, subject to strict compliance by ECPay and Mynt of their respective voluntary commitments,” Globe told the stock exchange on Thursday.

The Ayala-led telecommunications company said it expects to complete the transaction upon receipt of approval from the regulatory bodies and once closing conditions are also completed.

In 2023, Globe said that it had entered into an agreement with Globe Fintech Innovations, Inc. (Mynt), the holding company of the e-wallet platform GCash, for the sale of its 77% stake in ECPay for P2.31 billion.

Payment One, Inc., which holds a 23% stake in ECPay, had also agreed to the transaction, allowing Mynt to fully acquire ECPay.

ECPay is an electronic payment service provider established in 2001. Its platform allows its partners to process bill payments, online shopping, and credit card payments, as well as e-wallet and cash card reloading. ECPay was acquired by Globe in 2019. — Ashley Erika O. Jose

How PSEi member stocks performed — May 15, 2025

Here’s a quick glance at how PSEi stocks fared on Thursday, May 15, 2025.

Samsung investment decision awaiting talks on power rates

REUTERS

THE GOVERNMENT is currently negotiating power rates with Samsung Electronics that will help determine whether the South Korean multinational pursues an over $1-billion investment in the Philippines, the Philippine Economic Zone Authority (PEZA) said.

“What they want to assure is the power rates; that is what is being fixed. But the fiscal incentives have already been ironed out,” PEZA Director General Tereso O. Panga told reporters.

“They have presented prevailing rates in Vietnam, China, and South Korea, and those are going to be used as a benchmark. We can approximate the rates we can give them based on those,” he added.

Asked how much lower Samsung wants power rates to be, he said, “They are being reasonable; that is all I can say, and we have the capacity to provide it.”

He said another government agency is involved in the rate negotiations.

“Their other asks can be addressed through administrative interventions, like water; that one we are doing it from our end,” he added.

According to Mr. Panga, the new investment would expand Samsung’s operation in Calamba Premiere Industrial Parkway in Laguna.

“They have been with PEZA ever since. They will still manufacture multi-layer ceramic capacitors (MLCCs),” he said.

He added that the expansion involves a multi-story facility.

Incentives for investments under P50 billion are governed the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, while incentives can be tailored for investments amounting to P50 billion and above.

Under the law, President Ferdinand R. Marcos, Jr. can grant customized fiscal and non-fiscal incentives for projects at the P50 billion threshold in the “interest of national economic development.”

According to Mr. Panga, due to geopolitical events, many investments from the US, South Korea, and China are entering the country.

Mr. Panga noted that Chinese investor activity outpaced Japanese activity in the first four months.

In the four months to April, PEZA approved P63.523 billion worth of investment approvals, up 112.06% from a year earlier.

South Korea was the top source of investment in the first four months, accounting for P10.45 billion, followed by the US (P2.53 billion), China (P2.17 billion), Japan (P1.66 billion), Hong Kong (P1.14 billion), and Singapore (P1.1 billion).

“We are already seeing this momentum early on this year, we are hoping to sustain it,” he said. — Justine Irish D. Tabile

PHL, S. Korea sign deals on critical minerals, EVs

NICKELASIA.COM

TRADE Secretary Ma. Cristina A. Roque signed a strategic partnership agreement involving critical minerals and electric vehicles (EVs) with South Korean Minister for Trade, Industry, and Energy Cheong In-Kyo, the Department of Trade and Industry (DTI) said.

In a statement on Thursday, the DTI said the memorandum of understanding (MoU) signed in South Korea on Wednesday is expected to accelerate trade, drive industrial transformation, and support the transition to green energy.

“This MoU is the embodiment of President Ferdinand R. Marcos, Jr.’s mission to build a nation propelled by strategic global partnerships, environmentally responsible development, and a dynamic industrial sector,” Ms. Roque said.

The MoU covers renewable energy, electric vehicles, and the value-added processing of critical minerals for battery production in the interest of advancing both countries’ green industrial revolution.

Also on Thursday, Ms. Roque inaugurated the DTI SME Showroom at the President Hotel, offering a showcase for export-ready Philippine products.

“This launch is a concrete step towards bringing small and medium enterprises (SMEs) closer to the global market,” Ms. Roque said.

“By providing this physical presence overseas, we break through geographical barriers for our SMEs and build the trust that international buyers seek,” she said. — Justine Irish D. Tabile

Hog industry lobbied for pork MSRP removal — DA

PHILIPPINE STAR/ MICHAEL VARCAS

THE Department of Agriculture (DA) said on Thursday its decision to discontinue the maximum suggested retail price (MSRP) scheme for pork was the result of lobbying by the hog industry, which argued that production remains constrained by African Swine Fever (ASF).

Agriculture Secretary Francisco Tiu Laurel, Jr. clarified that the DA is withdrawing the pork MSRP “at the request of industry players.”

“While the industry tried to comply with the MSRP, the severe shortage in swine due to ASF, combined with strong consumer demand, has made it increasingly difficult to keep pork prices down,” he said.

The MSRP had been set at P300 per kilo for a whole slaughtered pig, P350 for pork shoulder and hind leg and P380 for pork belly.

Agriculture Undersecretary for Livestock Constante J. Palabrica said on Wednesday that vendors were not complying with the MSRP likely due to high farmgate prices, reportedly as high as P290 per kilo.

Mr. Laurel said pork retail prices remain high, “with industry groups pointing to the ASF resurgence as a key factor disrupting supply and dampening production.”

Since the first outbreak in 2019, the national hog inventory has declined from about 13 million head to just 8 million, according to the DA.

DA spokesman Arnel V. de Mesa told reporters on Thursday that the hog industry cited the need for a “recovery period” from ASF.

The MSRP will be revised, he said.

Compliance with the pork MSRP was below 5% as of May 2, against 30% on April 1.

Alfred Ng, National Federation of Hog Farmers, Inc. vice-chairman said the MSRP “failed” because “less than 15% of retailers followed the MSRP, claiming higher transfer prices from middlemen who in turn blame farmers,” he told BusinessWorld.

He said the DA’s failure to control the viajeros — the consolidators who link farms with dealers — was “the actual cause of the failed MSRP scheme.”

Mr. Ng said producers have to “sacrifice P2,000 per pig to cooperate with the DA.”

“How else will farms recover from the millions of losses the past year?”

“DA always says farmers have a 30% profit compared to viajeros with 10% and retailers 5%. In reality, farmers need a minimum of four to six months before they can convert their pigs to cash,” he said.

He said the actual profit of pig producers is only between 5% and 7.5% because they have to deal with animal diseases.

Mr. Laurel, meanwhile, said the lifting of the pork MSRP will not lead to a sudden spike in prices as markets also deal in cheaper imported pork.

Pork imports hit 53.598 million kilos in February, up from 38.994 million kilos a year earlier.

The DA said it will focus on buying hogs from farmers for P230 per kilo and distribute these to key slaughterhouses.

The DA is piloting a direct-sourcing scheme involving Food Terminal, Inc. (FTI) and Charoen Pokphand Foods PLC (CP Foods).

State-owned FTI has been supplying a Caloocan slaughterhouse with 100 live hogs daily from CP Foods since April.

The DA is hoping to pursue similar arrangements with other farm companies like Pilmico Foods Corp.

Mr. Ng welcomed the direct-sourcing strategy but noted that “many farms” refuse to sell to the DA because of its 30-days-to-pay terms.

Mr. Palabrica on Wednesday described the mode of payment for the direct-sourcing program as a “credit on delivery” scheme.

He said about P5-7 billion is earmarked for the program, adding that the FTI sells the hogs at no markup, while the cost of delivery to slaughterhouses is absorbed by the partner company.

Meanwhile, Mr. Laurel said the DA has hit the minimum access volume (MAV) quota for meat imports.

“Same breakdown as last year,” he said, noting that the allocation remains the same pending tariff negotiations with the US.

“Whatever changes we will make to the MAV allocation, it will be in 2026,” he said.

Meat Importers and Traders Association (MITA) President Jess C. Cham told BusinessWorld he supports an increase in the MAV.

“After all the current volumes were set 30 years ago when our population was 50% less, with lower per capita consumption,” he said.

“In addition, we are facing production shortfalls due to animal diseases such as ASF,” he added.

He noted that the delayed release of MAV allocations has “affected greatly the purchasing decisions of the licensees.”

The DA in April said it was hoping to overhaul the MAV system, which it said was being “exploited by a small number of accredited importers.” — Kyle Aristophere T. Atienza

Visitor arrivals of 6 million seen possible in 2025 — leisure analyst

REUTERS

THE PHILIPPINES can hit visitor arrivals of 6 million this year, even with its key source markets roiled by currency volatility, Leechiu Property Consultants said.

“I think the Philippines can still book 6 million visitors by year’s end, but of course there are risks,” Alfred Lay, director for hotels, tourism, and leisure at Leechiu, told BusinessWorld.

“Risks for this year are all mainly external, namely the uncertainty in the global economy, airline disruptions, and exchange rate volatility in our top source markets, which can both have positive and adverse effects,” he added.

The Department of Tourism reported that the Philippines booked 5.95 million visitor arrivals last year, well off its target of 7.7 million.

Mastercard Chief Economist for Asia-Pacific David Mann said that inbound tourism to the Philippines is recovering slowly compared to the outbound segment of the business.

“We have seen outbound spending rise 6% versus 2019, with the majority traveling to Japan, Korea, and Vietnam,” Mr. Mann said in a virtual briefing on Thursday.

“The inbound recovery has been a bit slower, at less than three-quarters (72%) recovered to 2019 levels, likely due to some of the slower recovery in the air capacity and reliance on long-haul markets,” he added.

He noted the slowdown in arrivals from Northeast Asia but added that visitors from Singapore, the US, and Australia, as well as overseas Filipinos, have been helping support the recovery.

The Philippines recorded 2.1 million visitor arrivals as of May 1, down 0.82% year on year.

South Korea, the top source market, accounted for 22.25% of arrivals, or 468,337, down 18% from a year earlier.

The other top source markets were the US, Japan, Australia, and Canada.

“While the dip in South Korean arrivals is notable, it’s too early to call it a lasting trend,” Mr. Lay said.

“Encouragingly, we’re seeing steady growth from the US, Australia, Japan, and parts of Europe — markets showing healthy demand that can help offset the shortfall,” he said.

However, he said the decline in arrivals “highlights the ongoing need for both the private and public sectors to continue improving our infrastructure and services.”

“The regional market is very competitive, and we need to keep adding more focus, resources, and funding to our tourism sector to ensure we stay relevant,” he added.

He said the opportunities in Philippine tourism still lie mainly in the domestic market. — Justine Irish D. Tabile

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