Performance of Philippine Agriculture
AGRICULTURAL OUTPUT grew by an annual 1.9% in the first quarter, as good weather helped boost crops, fisheries and poultry production, the Philippine Statistics Authority (PSA) said. Read the full story.
MPIC Q1 net income jumps 48% to P9.1B on asset sale gain
METRO PACIFIC Investments Corp. (MPIC) reported a 48% increase in its first-quarter (Q1) net income to P9.1 billion from P6.1 billion a year earlier, driven by a gain from the divestment of its oil storage business.
“Reported net income surged 48% to P9.1 billion from P6.1 billion, driven by a gain from the sale of MPIC’s oil storage company, Philippine Coastal Storage and Pipeline Corp. (PCSPC),” MPIC said in an e-mail statement on Wednesday.
In October last year, MPIC sold its 50% stake in PCSPC to an affiliate of global infrastructure investor I Squared Capital in a $296-million deal.
Operating revenue climbed to P19.29 billion, while consolidated core net income rose by 17% to P6.6 billion. Better performance across MPIC’s portfolio led to a 16% increase in contribution from operations to P7.9 billion.
The power business contributed the largest share of net operating income at P4.9 billion or 62%. The water and toll road segments contributed P1.9 billion and P1.4 billion, respectively, representing 42% of net operating income.
“We are pleased with our strong start to 2025, marked by solid performance across our core businesses and improved earnings momentum. These results reflect the steady execution of our strategy and the strength of our foothold in power, water, toll roads, and healthcare,” MPIC Chairman, President, and Chief Executive Officer Manuel V. Pangilinan said.
The power business, led by Manila Electric Co., posted a 9% growth in reported net income to P10.4 billion, as total revenue increased by 10% to P114.5 billion on higher energy sales.
Water provider Maynilad Water Services, Inc. grew its core net income by 17% to P3.6 billion on lower operating expenses. Revenue climbed by 6% to P8.6 billion due to an 8% tariff increase implemented in early January.
Toll road operator Metro Pacific Tollways Corp. saw a 15% decline in reported net income to P1.5 billion, as the prior-year figure benefited from the reversal of contingent considerations related to the Jakarta-Cikampek Elevated toll road acquisition.
Toll revenue increased by 16% to P8.7 billion on rate adjustments and domestic traffic growth.
“Looking ahead, we remain focused on sustaining this growth trajectory. We are accelerating investments in power generation and expanding our presence in agribusiness — both critical to supporting national development and ensuring long-term value creation,” Mr. Pangilinan said.
MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave
Hopeless?
“We’re doomed,” one economist friend remarked on social media — half in jest, I guess — as the latest Functional Literacy, Education, and Mass Media Survey results hit the headlines as this month began.
News of dismal “functional literacy” (metrics included reading comprehension starting 2023) among many senior high school grads have added to those baring two-decade-high self-rated poverty and multi-year-high involuntary hunger readings to cloud our development picture.
Connecting the dots formed by all these — and other — disparate indicators leaves one with a sinking feeling. This despite an otherwise rosy picture painted by some officials, e.g., that we are still expected to be among the fastest growing economies, GDP-wise, despite tempered projections; that we are less exposed than neighbors to external economic shocks; that we still have among the lowest “reciprocal” US tariff rates in Asia; that we should be able leverage our inherent strategic value as we talk trade with Washington, etc.
For the quality of our human resource hits the very core of our development prospects, i.e., one cannot expect an economy to perform well if it will be driven by a new generation of workers struggling with poor nutrition and shallow education among many of them.
These indicators are significant not only for what they, per se, could mean for our economy, but also for what they imply — that they result from wrong policies or poor policy/program implementation.
BATTLEGROUNDS
That, in turn, brings us to the quality of those chosen to make our laws and policies, and, thus, to another election exercise that will take place in five days. I won’t comment on the quality of those running for posts — there have been enough of those remarks making the rounds these days — nor on the frustration some may feel about voters who seem to keep basing their choices largely/exclusively on name recall.
We cannot have enough efforts of groups like the National Citizens’ Movement for Free Elections (NAMFREL) and the Parish Pastoral Council for Responsible Voting (PPCRV) to inform voters — particularly where poverty is most prevalent — about their responsibilities, the qualities of candidates best suited to fill elective posts, and ways to call them to account for their actions.
“If your life was not improved by the person you keep voting into office, why not try someone else?” is one message such groups have been telling their audience for quite some time now.
I just wonder when we will see some sign that voter education has been making inroads in terms of quality of those voted into office. Any perceptible change in voter behavior will take generations to manifest, for sure, hence, NAMFREL, PPCRV and other reformers are in this fight for the long haul.
At the same time, banish the thought that the problem here lies in lack of education. PPCRV Spokesperson Ana de Villa Singson said recently on the ABS-CBN News Channel that the P1,000-P2,000 some voters may be bribed with pales in comparison to the tens to hundreds of thousands of pesos returned by honest janitors and drivers of public utility vehicles. Which means: kaya pala (it can be done), and there is still hope in voter education.
Helping government officials themselves improve performance by arming them with the right attitudes and values is another battle altogether. There are also enough government and private sector groups fighting on this front. Congress, for one, taps the likes of the University of the Philippines National College of Public Administration to school neophyte lawmakers on their duties and functions, while the Ateneo School of Government carries out programs aimed at developing competent, ethical leaders.
But the problem seems to lie in lack of conviction and, thus, perseverance, as well as of an environment that encourages sustainability. Private sector outfits like the Institute for Solidarity in Asia note that this is a never-ending battle that, unfortunately, has seen some officials slide back to old ways under pressure from their environments.
WHERE INTERESTS INTERSECT
And so, there is another arena here that is crucial to improving the overall political environment: that of pushing parties to actually do something for society.
Now, before we start rolling our eyes (especially with the bastardization and hijacking of the party-list system by political families), let’s just acknowledge a few party reform initiatives that have been under way: from efforts of the Commission on Elections to clean up party registration, to a push of groups like NAMFREL to increase transparency in political donations and spending, to a proposal to require parties to have clear ideologies and platforms and ban turncoats (okay, this was first filed in Congress more than two decades ago and nothing came of it).
And lest we forget: Bangsamoro and Sangguniang Kabataan laws/election rules ban political dynasties… so hope springs eternal for a similar enabling law for the entire country.
But let’s face it: moves to upgrade electoral politics will come to nothing if lawmakers and their parties do not see such efforts serving their interests.
If there is anything that can be gleaned from voter preference surveys — well, besides the apparently durable clout of former president Rodrigo R. Duterte, especially after his arrest in March — it is that single-minded, constant focus on gut issues for the masses, particularly: hunger and basic healthcare, long before any election could catch the attention of voters, especially those of the D and E classes who comprise the bulk of the electorate. (Note survey topnotcher Sen. Christopher Lawrence “Bong” T. Go’s focus on his “Malasakit” brand since 2020, besides, of course, his close identification with the former president.)
This can be the way to go (besides choosing a catchy name) especially for any party that is not identified with a political dynasty (since many voters apparently still identify with names they know).
Targeting just a few core gut issues in order to build a support base among the masses for the long term (coupled, of course, with effective use of social media and any other means of communication favored by this social segment) will also, hopefully, actually improve the lot of target communities. Hence, parties can serve this development imperative (whereby every citizen ought to do what he/she can to uplift the lives of the poor) even as they pursue political ends. These two interests need not be mutually exclusive.
Moreover, parties that decide to work for the good of target communities — even if for political ends — could provide a stable platform and sustained environment that will help develop a better cadre of members. Man, wouldn’t that be something?
Hopefully, we will see especially party-list groups adopting this approach in mobilizing support, instead of just sprouting up like mushrooms without much, if any, track record (some with names that have nothing to do with their stated purpose but are designed to strike a chord with voters) as elections approach.
If even just a handful of political parties take this route, then perhaps there will be reason to hope after all.
Wilfredo G. Reyes was editor-in-chief of BusinessWorld from 2020 through 2023.
Celebrate Mother’s Day with helicopters and tacos
THERE are few people more special than your mother, and this year, there are few Mother’s Day (May 11) specials grander than these. From helicopter rides to at-home feasts, mom won’t have to think of anything else.
The Peninsula Manila
LET The Peninsula Manila help you show Mom how much she is appreciated this Mother’s Day. Treat her to a lavish brunch experience in Escolta (where she’ll dine for free) or take her on an exciting helicopter sightseeing tour of the city before dinner in Old Manila. Take mom on a 15-minute helicopter ride over the Manila skyline followed by an elegant four-course French-inflected dinner complemented by a bottle of the finest Deutz Champagne and a tin of caviar chocolates. Limited to six guests only, this sky-high offer is available at P16,300 for adults.
For something more down to earth, Old Manila Moments is a four-course French-inflected menu which will be available from 11:30 a.m. to 2:30 p.m. and 6-9:30 p.m. at P5,500 (adults and children).
Finally, treat her to a weekend staycation and an indulgent Peninsula Afternoon Tea experience at The Lobby with the Queen for a Day package. Throw in a 20% discount when availing of in-room massages, as well as dining in the hotel’s dining establishments.
For inquiries, call The Peninsula Manila at 8887-2888 or visit the website, peninsula.com/Manila.
City of Dreams
CITY OF DREAMS MANILA unwraps thoughtful offerings to spoil moms on their special day. Indulge her with a hearty meal of fine Cantonese cuisine at the award-winning signature restaurant Crystal Dragon where a Mother’s Day a la carte menu is available from May 5 to 11 for lunch and dinner. The menu’s highlights are Slow-braised Herbal Spring Chicken with fresh ginseng, abalone, and king mushrooms; Baked Live Sea Grouper with garlic sauce in a claypot; and Steamed Longevity Dumpling with sweetened peanut filling and Chilled Coconut and Mango Custard topped with sweetened bird nest.
One can also surprise her with a brunch experience at the Manila outpost of the Nobu restaurant. Savor unlimited helpings of the Nobu Signature Sashimi Trio of Tuna Matsuhisa, Yellowtail Jalapeno, Salmon Karashi Su Miso; Black Cod in butter lettuce, and chef’s selection of premium sushi cups and nigiri, featured alongside Mother’s Day specials. The Nobu Mother’s Day brunch is available from 11:30 a.m. to 3 p.m., and price starts at P4,388 net per adult for the Regular package, inclusive of non-alcoholic beverages and mocktails. Other packages that include alcoholic and premium beverages are also available. Children ages six to 12 years old enjoy half-price rates, and those five years and below dine for free when accompanied by an adult availing themselves of the Nobu brunch. Apart from the Sunday Brunch, Nobu Manila is open on Mother’s Day for dinner from 5 to 10 p.m.
Café Society has handcrafted chocolates and confections prepared by chocolatiers and pâtissiers for gifting. It’s Mother’s Day offerings from May 5 to 11 include Ube Leche Velvet Cake, Chocolate Milk Tea Cake, and Mother’s Day Mini Duo Cake. Mother’s Day-themed artisanal chocolates include the Mom’s Dream Box package, a two-level feast containing an edible white chocolate pair of shoes filled with round salted caramel pralines sitting on a cookies and cream bar; and at the lower drawer is a golden caramel with coconut chocolate bar topped by ladies’ chocolate shoes and purse. Other chocolate creations include a Mother-and-Child White Chocolate Bar with dried cranberry, cherry, apricot, and mango; and homemade chocolate fudge with dried cranberries, and homemade chocolate fudge with roasted cashew nuts.
For inquiries, call 8800-8080 or e-mail guestservices@cod-manila.com; or visit www.cityofdreamsmanila.com.
Lanson Place
LANSON PLACE Mall of Asia, Manila presents a memorable line-up of offerings to make every mom feel celebrated. The Made for Mom Staycation Package offers an overnight stay with buffet breakfast at Cyan Modern Kitchen, and a dining perk where Mom dines free for every two paying guests for the dinner buffet on May 11 or lunch buffet on May 12 at Cyan Modern Kitchen. The package also includes complimentary late check-out until 4 p.m. (subject to availability).
On May 11, treat her to a Mother’s Day Lunch or Dinner Buffet at Cyan Modern Kitchen, priced at P3,000 net per person. Children aged 12 and below dine at 50% off. Highlights include cochinillo, slow-cooked beef, seafood toast, lobsters and crabs, Tuscan salmon, mango truffle cheese pizza, and a selection of Indian dishes. A complimentary mimosa and a gift for all moms complete the experience.
A Pre-Mother’s Day Floral Arrangement Workshop and High Tea will be held on May 10 at Madeleine High Tea. For P3,800 net per person, guests can participate in a guided floral arrangement session followed by an elegant tea.
For more information, visit https://lansonplace.com/mallofasia. Lanson Place Mall of Asia is located at Block 12, Palm Coast Ave. corner Seaside Blvd., Mall of Asia Complex, Pasay City.
Newport World Resorts
NEWPORT WORLD RESORTS presents a collection of offerings that celebrate mothers. Gordon Ramsay Bar & Grill Philippines, in partnership with Las Filipinas, a collective of Filipina artists, will have live portrait sessions. For more information on this, contact 0917-147-6576, or e-mail info@gordonramsayrestaurants.com.ph.
Marriott Hotel Manila’s Marriott Café Bakery offers a Honey Glazed Bone-in Ham Package priced at P4,500 net, available from May 9 to 11, with early bird privileges for advance purchases until May 5. Mother’s Day Treats include mini cakes, fondant cakes, artisanal chocolates, and more, with prices starting at P350 net, available until May 12. There will be a grand Mother’s Day Buffet on May 11 at the Marriott Café priced at P3,800 net, featuring selections such as Australian beef rump and Legris oysters. Inquiries and reservations may be made through 0917-584-9560.
Sheraton Manila Hotel offers culinary creativity experiences. At Oori, there will be a Banchan and Kimbap Making Class on May 11 from 2 to 4 p.m., priced at P2,500 net per person, complete with a demonstration kit, snacks, finished dishes for takeaway, and certificates of participation. S Kitchen commemorates the day with a Flower Embroidery Workshop guided by Bella Joy Bardollas. The artistic celebration runs from 1 to 3 p.m., and is priced at P3,000 net, inclusive of workshop materials, food, and a keepsake final artwork. For bookings and reservations, contact 0917-859-7496.
A culinary journey in honor of mothers awaits at Hotel Okura Manila. Yawaragi presents a Mother’s Day Buffet priced at P3,950++, available on May 11, featuring Australian Wagyu chuck eye roll pot roast, herbed Dijon Omaha steamship, Japanese oyster thermidor, and more, accompanied by a complimentary mocktail and a special token for mothers. Yamazato offers an intimate Japanese fine dining experience with its Mother’s Day Omakase Sushi, priced at P15,000++, highlighting seasonal treasures. The Omakase Sushi is available from May 7 to 11. For reservations and inquiries, contact fb@hotelokuramanila.com or 0917-842-9067.
Hilton Manila pampers with an indulgent gathering at Kusina Sea Kitchens through its Mother’s Day Lunch Buffet, priced at P2,800++ per person. To make the day more special, mothers receive a Laura Mercier beauty gift and a 15-minute massage at The Cabana. For more details, contact 7239-7788 or e-mail MNLPH_F&Binquiries@hilton.com.
At Holiday Inn Express Manila Newport City, there is a family retreat package for Mother’s Day, priced at P5,800 net. The package includes an overnight stay in a standard room for two adults and two children below 12 years old, breakfast buffet, a choice between one chicken cordon bleu, schnitzel, fish and chips, or P1,000 worth of credits to Newport Cinema with a celebratory Danish pastry of choice. For more information, e-mail reserve.hiexmanila@newportworldresorts.com.
Taco Bell
Taco Bell has cooked up two Mother’s Day bundles. First is the Mother’s Day Bundle for two (P599): one Nachos Supreme, two Crunchy or Soft Tacos, one Cheese Quesadilla, one Strawberry Chocodilla, and two 12-oz. servings of ice-cold soda. For a bigger feast, there’s also the Mother’s Day Bundle for four (P949). It comes with one Nachos Bell Grande, four Crunchy or Soft Tacos, one XL Cheese and Beef Quesadilla, two Cinnamon Twists, and four 12-oz. servings of ice-cold soda. These Mother’s Day offers are available throughout the month of May for dine-in and takeout in all Taco Bell stores nationwide. They are also available for delivery by calling the 8911-1111 hotline.
Mang Inasal
Mang Inasal honors moms with “Mom Inasal Day,” with the promo available now until May 11. In the “Treat kay Mommy” (available until May 11), customers who purchase an Extra Creamy Halo-Halo Regular at any store nationwide will receive a free scoop of Selecta Ube Ice Cream. The promo is available for dine-in, takeout, drive-through, and delivery. Meanwhile, Mang Inasal is serving a unique twist to its Family Fiesta offering from May 9 to 11. Every order of Family Fiesta will include a specially designed sleeve that customers can personalize with handwritten notes for their moms. Each sleeve also includes a QR code that gives access to surprise freebies valid from May 9 to 31. Free rewards include drink upgrades with any Chicken Inasal Value Meal, or a free 1.5-liter Coke for Luzon and Visayas branches and a one-liter Pepsi for Mindanao branches with their next Family Fiesta purchase.
Yields on term deposits drop on BSP cut hopes
TERM DEPOSIT yields ended lower on Wednesday on expectations of further policy easing by the Bangko Sentral ng Pilipinas (BSP) after inflation cooled to an over five-year low last month.
The central bank’s term deposit facility (TDF) attracted bids amounting to P137.272 billion on Wednesday, above the P90 billion placed on the auction block and the P91.654 billion seen a week ago for a P100-billion offer. The BSP made a full P90-billion award of the papers as both tenors were oversubscribed.
Broken down, tenders for the seven-day papers reached P75.514 billion on Wednesday, higher than the P50-billion auctioned off by the central bank and above the P42.526 billion in bids for the same offer volume in the previous week. The central bank fully awarded the one-week papers.
Accepted yields ranged from 5.49% to 5.5575%, a narrower band compared with the 5.455% to 5.6% recorded a week ago. This caused the average rate of the one-week deposits to decline by 2.07 basis points (bps) to 5.5435% from 5.5642% previously.
Meanwhile, bids for the 14-day term deposits stood at P61.758 billion on Wednesday, higher than the P40-billion offering and the P49.128 billion in tenders for the P50 billion placed on the auction block last week. The BSP awarded P40 billion in two-week papers as planned.
Banks asked for rates from 5.5% to 5.625%, slightly lower than the 5.53% to 5.7% margin recorded a week ago. With this, the average rate for the two-week deposits declined by 2.92 bps to 5.5884% from the 5.6176% logged in the prior auction.
The BSP has not auctioned off 28-day term deposits for more than four years to give way to its weekly offerings of securities with the same tenor.
The term deposits and the BSP bills are used by the central bank to mop up excess liquidity in the financial system and to better guide market rates.
TDF yields declined on Wednesday amid dovish signals from the BSP chief following the April inflation data, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
The Philippine central bank is open to cutting its key interest rate by a further 75 bps for the rest of the year as inflation continued to ease, according to BSP Governor Eli M. Remolona, Jr., Bloomberg reported.
“On the table, yes,” Mr. Remolona said in a mobile-phone message on Wednesday when asked if it’s possible for the Bangko Sentral ng Pilipinas to reduce the benchmark rate by 75 bps more this year after inflation further slowed in April.
The Monetary Board last month resumed its policy easing cycle after an unexpected pause in February, slashing benchmark borrowing costs by 25 bps to bring the target reverse repurchase rate to 5.5%.
Philippine headline inflation sharply decelerated to an over five-year low of 1.4% in April from 1.8% in March and 3.8% in the same month a year ago. This was within the BSP’s 1.3% to 2.1% forecast for the month and well below the 1.8% median estimate in a BusinessWorld poll of 14 analysts.
For the first four months, the CPI averaged 2%, at the low end of the BSP’s 2-4% annual target. — Aaron Michael C. Sy with Bloomberg
AMD forecasts $1.5-billion revenue hit from US curbs on China chip exports
ADVANCED MICRO DEVICES (AMD) on Tuesday forecast a $1.5-billion hit to revenue this year due to new US curbs on chips, which require the company to obtain a license to ship advanced artificial-intelligence processors to China.
But it issued a second-quarter revenue forecast that topped Wall Street estimates, which analysts attributed to customers buying more chips ahead of tariffs. Its shares were last up about 1% in after-hours trading after rising as much as 6% and falling as much as 3.5%.
Under the Biden and Trump administrations, the US has pursued increasingly aggressive curbs on artificial intelligence (AI) chip exports to China. These controls are aimed at hobbling China’s ability to build advanced AI models and applications that, according to the US, could have national security implications.
AMD Chief Executive Officer Lisa Su said on a conference call on Tuesday that most of the impact from the curbs would affect the second and third quarters this year. Despite the new controls, Ms. Su said she expects AI chip revenue from the company’s data center business to grow this year by “strong double digits.”
“It’s certainly a headwind, but one which we think is well contained given everything else that we have going on,” she said.
In April, AMD said it would record an $800-million charge from the new US tariffs on chip exports to China. On Tuesday, it forecast adjusted gross margin of 43%, which represents an 11 percentage-point drop from the gross margin excluding the charge.
Like AMD, Nvidia has also warned Wall Street that it will now need an export license to China. Nvidia faces a $5.5-billion charge as a result.
China accounts for roughly a quarter of AMD’s total revenue, and the impact of the export controls would shave nearly 5% off the Wall Street forecast for revenue of $31.03 billion per LSEG data.
AMD finance chief Jean Hu said in the conference call following the results that the $1.5-billion revenue hit for 2025 was due to the new round of export controls from April.
“The subtext is hard to miss; big hyperscalers would rather accelerate purchase order dates than risk export‑license roulette once the latest China rules bite,” said Michael Schulman, chief investment officer at Running Point Capital.
“The flip side is that, once those safety‑stock closets are full, Q3 could feel like the morning after a Red Bull binge… keep one eye on backlog burn rates and another on Washington’s next tariff tweet,” he said.
GROWTH DESPITE CHINA
Still, the optimistic forecast shows that demand for AMD’s advanced processors remains strong as they power complex AI systems for Microsoft, Meta Platforms and other customers. These cloud giants recently reinforced hefty spending plans for building AI infrastructure.
On the conference call, Ms. Su said the company had not seen a lot of “tariff-related activity” in the first quarter.
The company expects revenue of about $7.4 billion for the second quarter, plus or minus $300 million, compared with analysts’ average estimate of $7.25 billion.
In February, the company steered away from a practice of giving a specific sales forecast for its AI chips, but Ms. Su had said AMD expects “tens of billions” of dollars in sales “in the next couple of years.”
AMD reported data center sales jumped 57% to $3.7 billion, which topped estimates of $3.62 billion. The company includes much of its AI hardware in its data center segment.
Total revenue jumped a better-than-expected 36% to $7.44 billion. Adjusted profit of 96 cents a share was ahead of estimates by 2 cents a share.
Chip maker Marvell Technology and server maker Super Micro both disappointed investors on Tuesday. Marvell pushed back a planned Investor Day to a later date in calendar 2026, citing the uncertain economy, and Super Micro trimmed its 2025 revenue forecast, adding to concerns about its position in the AI market. Marvell shares were down 4.5% after hours and Super Micro were down 5%. — Reuters
Philippine Labor Force Situation
THE Philippines’ unemployment rate inched up to 3.9% in March from a month earlier, even as the number of jobless Filipinos fell by the tens of thousands from a month and a year earlier, according to the statistics agency. Read the full story.
BSP set to ease policy further but may stay cautious as Trump jitters linger
BENIGN INFLATION gives the Bangko Sentral ng Pilipinas (BSP) room to reduce benchmark interest rates further, but it could stay cautious due to the economic uncertainty caused by the United States’ protectionist policies, analysts said.
The slower April inflation print affirms that there is room for further easing, BSP Assistant Governor Zeno R. Abenoja also said on the sidelines of the 58th Asian Development Bank Annual Meeting in Milan, Italy on Wednesday, but the pace and size of rate cuts will still need to be studied.
“The BSP has the monetary space to do additional cuts because, number one, the actual inflation for the first four months of the year is 2% — just at the lower end of the target of 2-4%,” GlobalSource Partners Country Analyst and former BSP Deputy Governor Diwa C. Guinigundo said in a phone interview. “Based on actual first four-month average of 2%, and the next three years’ risk-adjusted inflation forecast, the BSP has the flexibility to do it.”
Mr. Guinigundo said he expects the BSP to cut rates by two to four more times this year.
“However, I’m sure the BSP will be more circumspect, more careful in doing further monetary policy easing for the reason that there is greater uncertainty in the global financial markets and in the global economy,” he said, noting the Trump administration’s evolving tariff, tax and immigration policies.
“All of this could translate into higher inflation and lower growth in the US. And since the US is the biggest economy in the world, chances are many of us will be affected in the process. So, I think the BSP will have to monitor what is happening in other economies and what the central banks are also or will be doing in the process.”
Philippine headline inflation slowed to 1.4% in April from 1.8% in March and 3.8% a year prior. This brought average inflation in the first four months to 2%.
Accounting for risks, the BSP expects inflation to average 2.3% in 2025 and 3.3% in 2026.
The central bank resumed its easing cycle last month with a 25-basis-point (bp) rate cut, bringing the policy rate to 5.5%.
The Monetary Board has four remaining meetings this year, with the next one scheduled for June 19.
BSP Governor Eli M. Remolona, Jr. told Bloomberg on Wednesday that they are open to cutting rates by a further 75 bps this year amid cooling inflation.
“The inflation number in April confirms or reaffirms the analysis that was done in the last meeting, that inflation will continue to be manageable moving forward this year,” Mr. Abenoja told reporters.
“At that time, the Monetary Board mentioned that there’s flexibility to support this shift to a more accommodative monetary policy stance. But perhaps the pace, the timing, and the magnitude, we have to look at the data in each meeting.”
Mr. Abenoja said the low inflation in April was partly due to the normalization of food inflation.
He added that cooling inflation is unlikely to be a signal of slowing consumer spending.
“It may not yet be evident that there is a significant slowdown of demand coming from the external shocks. We don’t think this is yet a reflection of that. It’s more of the supply issues resolving themselves, including for rice,” he added. “We could also be benefiting, including moving forward, from the reduction in international oil prices.”
The first-quarter gross domestic product (GDP) report to be released on May 8 (Thursday) will be a crucial data point for the BSP’s next policy decision, Mr. Abenoja said.
“It will be one of the major indicators that will be analyzed by the Monetary Board. So we will see,” he added. “The Monetary Board can discuss how much of that scope of flexibility can be undertaken in the remaining four meetings for monetary policy.”
INFLATION TO STAY LOW
For his part, Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco said he anticipates at least 75 bps more in cuts from the BSP this year following the April consumer price index (CPI) result as inflation is likely to stay within target for the rest of the year
“I wouldn’t be surprised if they went further with 100 bps, given how subdued inflation has been recently and will likely continue to be going forward,” Mr. Chanco said in an e-mail. “Our base case now is that inflation will hover just below the 2% lower bound of the BSP’s target range for the rest of this year, especially with global oil prices tanking amid the US’ trade war.”
“The real rate of interest in the Philippines is still very elevated as things stand, especially in the wake of the recent declines in inflation, so the Monetary Board has ample room to cut rates without overdoing it.”
Moody’s Analytics economist Sarah Tan likewise said they expect the CPI to stay at the lower bound of the BSP’s 2-4% annual target this year.
“Even if global inflation rises due to supply-chain disruptions stemming from evolving US trade policies, it is unlikely that inflation in the Philippines will exceed the upper limit of the target range,” Ms. Tan said.
“Continued progress on the inflation front will create room for further monetary policy easing over the remainder of the year. We anticipate at least one more 25-basis-point rate cut in the second half of 2025. A lower policy rate would help ease the financial burden on households and provide some relief to the domestic economy, offsetting the negative effects of a weakening trade environment as US tariffs increase,” she added.
Meanwhile, Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, Inc. (UnionBank), said they expect inflation to bottom out before accelerating anew by August amid the typhoon season.
Still, UnionBank expects the CPI to remain within target this year and next.
Mr. Guinigundo added that upside price risks could come from potential second-round effects like transport fare and wage hikes.
“Upside risks to inflation remain… At present, the low inflation, low oil prices and strong peso gives the BSP leeway to cut,” Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., said in a Viber message. — Aubrey Rose A. Inosante and Luisa Maria Jacinta C. Jocson
Bilibid or not in Mindoro
About a year ago, the Department of Justice (DoJ) formed a group to take the lead in constructing new prisons for people convicted of heinous crimes. This was about two years after a law was passed by Congress in 2022 for the construction of at least three new maximum-security prisons around the country.
This is considering that the New Bilibid Prison in Muntinlupa needs upgrading since it was built by the Philippine Commonwealth government in 1940 and is now 85 years old. Prior to this, convicts went to the Old Bilibid Prison or Bilibid Viejo, which was built by the Spanish Colonial Government in the 1860s. Bilibid Viejo is still in use today as the City Jail of Manila.
Just this week, US President Donald Trump ordered US officials to rebuild and enlarge Alcatraz prison island in California, which was built in the 1934 but was shut down in 1963 due to high operating costs. President Trump cited the need for a new prison to “house America’s most ruthless and violent offenders.”
To an extent, the Philippine government had something similar to Alcatraz in mind. With Republic Act No. 11928, or the “Separate Facility for Heinous Crimes Act,” the government is now building at least one high security jail each in Luzon, Visayas, and Mindanao to hold high-level offenders or those sentenced to life imprisonment.
The law provides that the new facility will host those convicted of treason; piracy in general and mutiny on the high seas and in Philippine waters; qualified piracy; qualified bribery; parricide; murder; infanticide; kidnapping and serious illegal detention; robbery with violence against or intimidation of persons; destructive arson; rape; human trafficking; and illegal drugs trafficking.
The law also provides that a new state-of-the-art jail will be built “in a suitable location to be determined by the Secretary of Justice, away from the general population and other PDLs [Persons Deprived of Liberty] and preferably within a military establishment or on an island separate from the mainland… to ensure that there is no unwarranted contact or communication from outside of the penal institution.”
Given these requirements, I am surprised that the government decided on Sablayan, Occidental Mindoro as the site for the first of three facilities to be built. While there is an existing penal farm in the area, frankly, I feel Sablayan is not isolated enough to hold those convicted of heinous crimes.
The original Sablayan Prison and Penal Farm was established in 1954 on the western side of Mindoro island. But, the prison has been undergoing improvements lately to also host a super maximum-security facility. Its redevelopment will finish by 2028, and by then, it will have one of three new jails to hold high-level offenders.
Since late 2024, about 300 inmates from Muntinlupa have already been transferred to Sablayan. The government wants all convicts in drug-related cases to be housed in a single high-security facility. The new high security prison, I believe, will be built adjacent to the existing facility.
Bidding for the second phase of the Sablayan project, with a budget of P300 million, was scheduled to be held last January. The government is looking for a design and build contractor to undertake the construction. The project should be completed within a year from the release of the notice to proceed.
The project will include a 3,000 square meter two-story dormitory that will house about 500 inmates. Also to be built around the dormitory is a three-meter-high concrete perimeter fence to cover a 50-hectare area. To date, however, it remains uncertain if the bidding last January was successful.
I doubt very much if there are local contractors specializing in prison construction. I guess we can expect the likes of Megawide, DMCI, San Miguel Corp., EEI, and other big contractors to have bid for the project. The bid is expected to be awarded to a winning contractor within this month.
My concern with Sablayan is that Occidental Mindoro is not exactly isolated. Sablayan town is a first-class municipality with a population of about 94,000 people (as of the 2020 census). A map of the area will show that the prison is just around 16 kilometers from the town center on the island’s western coast. About 10 kilometers south of the prison is the Pasugui Sub-Prison. And behind the Sablayan penal farm are Mt. Siburan, Mt. Baco, and the Iglit-Baco National Park.
I believe that any maximum-security prison should be some distance away from the general population and other prisons, maybe at least 25 kilometers away from any town with a population of more than 10,000. Mindoro, while an island, is populated by about 1.5 million people.
A maximum-security prison should also have controlled access. In Sablayan’s case, the penal farm is along the Mindoro West Coastal Road. Also, the Sablayan Penal Colony is about 17,000 hectares in size, which makes it difficult to secure. In comparison, Bilibid in Muntinlupa is only 375 hectares.
In my opinion, a maximum-security prison is preferably located within a military camp or on a small island under military control with restricted access. An island penitentiary is still ideal, like Alcatraz, on any of the uninhabited small islands in Manila Bay or off the coasts of Cavite, Zambales, Bataan, Palawan, or Quezon.
These include Carabao Island in Cavite, near Corregidor. I believe it is a former military installation and is presently uninhabited. It is also naturally isolated, but still within logistical reach of Metro Manila or Cavite. The same goes for the smaller Limbones Island, at the mouth of Manila Bay near the West Philippine Sea.
A solitary island prison is ideal if the government’s intent is to build specialized prisons to securely detain the most dangerous offenders, and to isolate them from other inmates so as limit their influence within the general prison population and curb illicit activities such as drug trafficking and organized crime.
Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippine Press Council
Ancient Cuban flatbread makes comeback as economic crisis bites
HAVANA — A bustling restaurant in old Havana offers diners a blast from the distant past — small circular flatbreads made from ground yucca served alone or topped with any combination of onion, tomato, pork, and garlic.
The dish, known locally as casabe, has been around for over a thousand years, historians said. More recently, it has mostly been relegated to field hands and Cuban country outposts.
Now it may be making a comeback.
Cuba’s dire economic crisis has vastly reduced the import and production of such basics as wheat flour, sugar, and salt.
This has prompted some to give the simple flatbread another look. Its only ingredient is locally grown yucca root, also known as cassava.
“In a time of food crisis like the one we’re currently experiencing, we believe cassava bread can help,” said Yudisley Cruz, co-founder of Yucasabi, a small business and restaurant that promotes yucca-based products.
Her small restaurant in touristy old Havana sells a single casabe for 15 pesos (4 cents), making it nutritious, delicious and affordable for both tourists and locals alike, she said.
Ms. Cruz’s restaurant — the only one in Cuba dedicated exclusively to yucca — is trying to popularize the flatbread in urban areas.
But in the countryside, peddlers on foot, bike, and moto-taxi sell casabe at even lower prices, a rare foodstuff nearly everyone can afford.
Its near universal appeal, simplicity, and cultural roots — it was first cooked on hot rocks by the indigenous Taíno people in Cuba and elsewhere in the Caribbean — prompted the United Nations last year to add the food to its intangible cultural heritage of humanity list.
Yucasabi, which features paintings of Taínos in Cuba’s lush countryside on its walls, has given the ancient bread a modern spin, in hopes of attracting a new and larger clientele.
“Casabe from Cuba, 100% artisanal, vegan, zero gluten,” reads its advertising on social media.
Simplicity, however, remains the flatbread’s top selling point, says Julio César Núñez, an 82-year-old traditional casabe producer who lives outside Havana.
Mr. Núñez oversees the harvest, peeling, drying, grinding of the yucca root. That is formed into tortilla-like discs and cooked on sheet metal over flames.
“Anyone who takes the time to learn can do it,” he said. — Reuters
D&L Q1 net income rises 10% on strong exports
LISTED D&L Industries, Inc. grew its first-quarter net income by 10% to P681 million from P618 million a year earlier, driven by stronger exports and the continued ramp-up of its Batangas plant operations.
Sales during the first quarter rose by 62% to P14.27 billion from P8.83 billion a year ago, the specialty food ingredients and oleochemicals producer said in a regulatory filing on Wednesday.
Export sales, which accounted for 34% of total sales, surged by 69% to P4.8 billion on higher volume. The company’s Batangas plant increased its net income by 35% quarter on quarter to P333 million, led by orders from both local and export customers.
“The year started with strong momentum. However, the increasing global uncertainties have led to a noticeable slowdown and dampening of global business sentiment,” D&L President and Chief Executive Officer Alvin D. Lao said in a separate media briefing late Tuesday.
According to Mr. Lao, there has been some hesitation among its United States customers amid uncertainties.
However, he said the US market accounts for only about 3% of D&L’s total revenue.
“Nonetheless, the Philippines may be one of the least affected countries given its import-heavy trade balance. In addition, the lower proposed reciprocal tariff for the Philippines versus its neighboring countries may put the Philippines in an advantageous position,” he said.
Total volume increased by 33%, as high-margin specialty products (HMSP) grew by 36% and commodities rose by 30%.
“The buoyant volume growth was driven by a combination of the strong exports, new customer wins, market share grab, and positive regulatory development with the increase in mandated biodiesel blend from 2% to 3% starting Oct. 1, 2024,” D&L said.
However, the growth was tempered by the increase in commodity prices such as coconut oil, which saw a 74% average increase for the quarter amid tight supply due to the effects of El Niño last year.
Among segments, the food ingredients division posted a 33% volume growth, led by HMSP and commodities.
Chemrez Technologies, Inc. recorded a 27% increase in earnings, driven by its biodiesel division following the higher biodiesel blend.
The specialty plastics division saw a 5% drop in earnings as tariff-related uncertainties hampered business sentiment in the global automotive industry.
The consumer products original design manufacturer division recorded a 30% decline in net income on lower margins, though volume increased by 23% amid easing inflation.
“While volatility is likely to persist in the near term, we remain unfazed and continue to focus on building resiliency and long-term growth strategies,” Mr. Lao said.
“We believe that with our product portfolio, the majority of which cater to basic and essential industries, we will continue to grow and be relevant in an ever-changing business environment and world trade order,” he added.
D&L shares rose by 1.05% or six centavos to P5.76 per share on Wednesday. — Revin Mikhael D. Ochave
Microsoft launches lower-priced AI laptops with Qualcomm chips
SAN FRANCISCO — Microsoft on Tuesday said it will release a new laptop and tablet with chips from Qualcomm at lower prices than before, aiming to get new artificial intelligence (AI) features to a broader set of customers.
The newest Surface 13-inch laptop and Surface Pro 12-inch tablet will go on sale on May 20, with the laptop starting at $899 and the tablet starting at $799.
Both will feature Qualcomm’s Snapdragon X Plus chips, and they will be priced slightly between competing products from Apple such as its MacBook Air, which starts at $999 and its iPads, where Air Pro models start at $649 and $999.
But Microsoft’s new offerings will be its lowest-priced yet with support for what it calls “Copilot+” features that it introduced last year. That bundle of features includes things like the ability to ask how to change the computer’s settings as a natural language question rather than sifting through settings menus or the ability to ask for an AI-generated first draft of a word document.
Microsoft has set performance computing chip requirements for the new Copilot+ label, which has meant that most of those AI features are only available on machines that cost $1,000 or more.
Pavan Davuluri, corporate vice president of Windows and Devices at Microsoft, said the new Surface devices are aimed at getting those features to a broader set of users, especially students or young professionals at the start of their careers.
“We think these new Surface Pro and laptops are for a set of customers for whom affordability is going to be important,” Mr. Davuluri told reporters during a press briefing on April 28. — Reuters