Combatting malnutrition in the Philippines
Growth Watch is one of Abbott’s ongoing initiatives that help identify and combat childhood malnutrition in the Philippines.
Interview by Patricia Mirasol
Video editing by Jayson Mariñas
Philippines’ Vice President Duterte prepared for impeachment, father welcome to join defense team
MANILA – Philippine Vice President Sara Duterte said on Friday she had been preparing since last year for impeachment and would welcome on her defence team her firebrand father, former President Rodrigo Duterte, if interested to join.
Sara Duterte said she had not read the complaint against her endorsed by majority of lower house members but her lawyers were gearing up for a trial in the Senate. The Senate’s president has said that could take place in June.
Asked during a press conference if her resignation was an option, she said: “We’re not there yet. Those things are still too far off.”
Ms. Duterte’s remarks were her first since the lower house impeached her on Wednesday, charging her with culpable violation of the constitution, graft and corruption, other high crimes and betrayal of public trust. She has denied wrongdoing.
It stemmed from allegations she misused public funds while vice president and education minister, amassed unexplained wealth, and threatened the lives of President Ferdinand Marcos Jr, the first lady and the lower house speaker.
On Friday she again reiterated she had made no assassination threat.
Ms. Duterte said her 79-year-old father was welcome to join her defense team “if he wants to”, adding he may not lead the team given his age. Mr. Duterte is a former city mayor and prosecutor who was Philippine president from 2016-2022.
The vice president has been embroiled in a long-running row with former ally Marcos and has previously dismissed moves against her as politically motivated.
For her to be convicted and removed from her post, the support of two-thirds of senators at the trial is required. Ms. Duterte has some key allies in the Senate, as does Mr. Marcos.
Ms. Duterte said she could not say if she would secure enough votes for an acquittal.
“The only thing I can say a this point is God save the Philippines,” Ms. Duterte said before taking questions from journalists. — Reuters
Philippine rice buyers delay 350,000 tons of Vietnamese cargoes-sources
SINGAPORE – Rice importers in the Philippines have delayed purchases of around 350,000 metric tons of Vietnamese rice and are in the process of renegotiating deals, after a steep decline in prices, two trade sources with direct knowledge of the deals said.
“There has been a big drop in Vietnamese rice prices in the last few weeks,” said one Singapore-based senior executive at an international grain trading company. “Now buyers are not willing to take the expensive rice.”
Rice importers had signed deals at around $620 per metric ton, free on board, for Vietnamese fragrant rice late last year but now the price has dropped to around $500 per ton, the two trade sources said.
“This is happening just before the new harvest starts in Vietnam,” said the second trading source at an international rice trading firm in Bangkok. “It is big jolt to Vietnamese exporters as some of these deals could turn into defaults.”
Earlier this week, the Philippines, among the world’s largest rice importers, declared a food security emergency to bring down the cost of rice, which it said has stayed elevated despite lower global prices and a reduction in rice tariffs last year.
Global rice prices have dropped since India eased restrictions on rice exports in September and October. Indian prices this week hit their lowest since June 2023 while Vietnamese prices have slid to the weakest since September 2022.
The rice market had rallied in 2023 after India, by far the world’s biggest exporter, curbed overseas sales following poor monsoon rains.
But rice inventories in India surged to a record high at the start of December, reaching more than five times the government’s target and potentially boosting exports. — Reuters
Cocogen celebrates 62 years of service excellence
For 62 years, Cocogen has been a household name, providing steadfast support to millions of Filipinos and serving as a trusted partner in navigating life’s uncertainties.
In 2025, the company commemorates not just an anniversary, but a legacy built on an unwavering commitment to exceptional service and a proven track record of achievements that firmly cement its position as a pillar of the insurance industry.
Customer experience
Cocogen’s dedication to outstanding customer service is more than just a slogan; it lies at the heart of the company’s operations. To continuously strengthen relationships with customers, Cocogen has implemented various programs aimed at enhancing the customer journey and experience. Notably, the integration of the Consumer Assistance Management System on the website ensures that all complaints and feedback are addressed promptly and appropriately.
The company has launched diverse marketing campaigns to reach a broader audience and enhance its social media presence through collaborations with content creators. Cocogen has also partnered with well-known brands such as Klook, offering discounts through promo codes and organizing exclusive travel promotions in South Korea.
Innovation
Cocogen consistently pursues digital enhancements and adopts new technologies to meet the evolving needs of its customers. Major improvements have been made to streamline the online application processes for Auto Excel Plus and International Travel Excel Plus. Similarly, the payment process for online sales has also been refined.
New partnerships have been established, particularly with Moneymax, resulting in increased online sales production for Travel Excel Plus. Additionally, Cocogen successfully collaborated with Globe to provide cyber insurance coverage for its premium subscribers.
This commitment to progress ensures that Cocogen remains relevant and responsive to the demands of the modern world.
Community engagement
Beyond providing financial security, Cocogen is deeply devoted to the communities it serves. It actively supports ARISE Philippines as a member, participating in disaster management and resilience initiatives.
For the second consecutive year, Cocogen sponsored the Open Heart Foundation to celebrate National Children’s Month, with volunteer employees actively facilitating activities for the organization’s beneficiaries.
Cocogen firmly believes in giving back and contributing to the well-being of the communities in which it operates.
Industry recognition
Cocogen’s commitment to excellence has earned it numerous awards and accolades over the years. In 2024, the Insurance Asia Awards named Cocogen the Domestic General Insurance Company of the Year for the Philippines. Additionally, the HackGuard Personal Cyber Insurance was recognized as the New Insurance Product of the Year by the same organization.
“Our insights from the past year—whether regarding collaboration methods, operational processes or approaches to overcoming challenges—have provided us with not just a solid foundation for improvement but also the momentum to propel us to greater heights,” expressed president and CEO David Padin during the company anniversary celebration held at The Westin Manila, Pasig City, on February 6.
Over the past six decades, Cocogen has navigated economic shifts, technological advancements, and evolving societal needs, all while remaining true to its core values: Committed, Compassionate and Genuine.
Looking forward to many more years of strength, security, and shared success, Cocogen is dedicated to upholding its legacy of excellence and maintaining its unwavering commitment to providing exceptional services, which have defined the company for 62 years.
Visit www.cocogen.com for more details.
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AI chip firm Cerebras partners with France’s Mistral, claims speed record
Cerebras Systems, an artificial intelligence chip firm backed by UAE tech conglomerate G42, said on Thursday it has partnered with France’s Mistral and has helped the European AI player achieve a speed record.
Mistral, a maker of open-source AI technology, is aiming to challenge fellow open-source contenders Meta Platforms and China’s DeepSeek, which rocked global markets late last month with claims of cutting-edge performance at low cost. All three compete with ChatGPT creator OpenAI.
On Thursday, Mistral released an app called Le Chat that it said can respond to user questions with 1,000 words per second.
Cerebras said it is providing the computer power behind those results, which it claimed makes Mistral the world’s fastest AI assistant, ahead of both OpenAI and DeepSeek.
Silicon Valley-based Cerebras, which has filed for an initial public offering that is delayed while U.S. officials review G42’s involvement with the firm, is one of the few challengers to Nvidia for training AI models. But the partnership with Mistral on Thursday is for serving an app based on its model to users, a step called “inference” in the AI industry.
As rivals have closed in on matching OpenAI’s models, the speed of delivering answers to users has become more of a priority, said Cerebras Chief Executive Andrew Feldman.
“You want better answers. And to get better answers, you need more compute at inference time,” Feldman told Reuters. “It was our first announced major win at a tier-one model maker, and so we’re really proud of that.” – Reuters
UN food agency WFP received dozens of US stop work orders despite emergency waiver
WASHINGTON/LOS ANGELES – The U.N. World Food Programme (WFP) was ordered by Washington to stop work on dozens of U.S.-funded grants, according to an email seen by Reuters, that was sent five days after Secretary of State Marco Rubio issued a waiver for emergency food assistance.
The U.S. Agency for International Development (USAID) grants, at various stages of progression, are worth tens of millions of dollars and provide food assistance in impoverished countries including Yemen, Democratic Republic of Congo, Sudan, South Sudan, Central African Republic, Haiti and Mali.
The U.S. State Department and the World Food Programme did not immediately respond to a request for comment.
Several of the suspended grants are under the Food for Peace Title II program, which spends about $2 billion annually on the donation of U.S. commodities. The program, which makes up the bulk of U.S. international food assistance, is co-administered by the U.S. Department of Agriculture and USAID.
Just hours after taking office on January 20, Mr. Trump ordered a 90-day foreign aid pause so contributions could be reviewed to see if they align with his “America First” foreign policy. The U.S. is the world’s largest aid donor.
The State Department then wrote a January 24 “stop work” cable – seen by Reuters – for all existing foreign assistance and paused new aid, but said Rubio had given an exemption for emergency food assistance. He also approved a waiver on January 28 for life-saving humanitarian help, defined as core life-saving medicine, medical services, food and shelter.
‘FAR REACHING CONSEQUENCES’
But on January 29, WFP – whose executive director is American Cindy McCain – received an email, seen by Reuters, from USAID’s Bureau for Humanitarian Assistance listing dozens of project numbers subjected to a stop work order.
A senior WFP official in Washington responded with a list of clarifying questions, according to the email. In another note, seen by Reuters, the same official raised concerns about the pause in Title II and Commodity Credit Corporation awards.
“The pause in Title II and CCC awards has disrupted WFP’s massive food supply chain, affecting over 507,000 metric tons (MT) of food valued at more than $340 million,” the WFP official wrote.
The official noted that some of that food was currently en route by sea, more was stored in 23 countries and some was in overland transport. They added that “a substantial quantity of food is currently being loaded at ports like Houston and other locations across the U.S. domestic supply chain.”
“The scale of this disruption underscores the far-reaching consequences of the funding pause on global food assistance efforts. WFP is in the process of analyzing the impact this has on the extremely vulnerable beneficiaries in severe humanitarian contexts that receive this lifesaving assistance,” the WFP official wrote.
The Trump administration’s effort to slash and reshape American foreign aid is crippling the intricate global system that aims to prevent and respond to famine, according to humanitarian organisations.
USAID has been a target of a government reorganization program spearheaded by businessman Elon Musk, a close Trump ally. The Trump administration plans to keep fewer than 300 USAID staff out of the agency’s thousands of staff.
Mr. Trump’s incoming U.N. Ambassador Elise Stefanik praised WFP as “a very successful program” when she appeared before the U.S. Senate Foreign Relations Committee last month. She noted that WFP has “significant bipartisan support” in Congress. – Reuters
NCAA bans transgender women from sports a day after Trump executive order
The NCAA, the governing body for collegiate sports in the United States, banned transgender women from competing in women’s sports effective immediately on Thursday, aligning itself with U.S. President Donald Trump.
The policy change came one day after Mr. Trump signed an executive order attempting to exclude transgender girls and women from female sports, a directive that supporters said would restore fairness but critics contend infringes on the rights of a tiny minority of athletes.
“A student-athlete assigned male at birth may not compete on a women’s team,” the new policy says, basing sex on what doctors assign to infants at birth and what is marked on their birth records.
The NCAA previously allowed transgender women to compete as long as they met testosterone limits on a sport-by-sport basis.
Mr. Trump exulted in the NCAA policy change with a social media post announcing, “IT IS NOW BANNED!”
“This is a great day for women and girls across our Country. Men should have NEVER been allowed to compete against women in the first place, but I am proud to be the President to SAVE Women’s Sports,” Trump said, adding that he expected the Olympics to follow suit.
The change affects only a small number of athletes. National Collegiate Athletic Association President Charlie Baker told a Senate panel in December he was aware of fewer than 10 transgender athletes among the 530,000 competing at 1,100 member schools.
But the issue has caused an uproar in national politics, with Mr. Trump regularly raising the issue of transgender women and girls competing in female sports during his 2024 campaign for president.
Mr. Trump has issued a series of directives to repeal transgender rights, banning transgender people from military service, ordering transgender women inmates to be moved into men’s prisons, and seeking to ban healthcare related to gender transition for people under 19. All have met with legal challenges.
Shortly after Mr. Trump signed his executive order in a ceremony at the White House, the NCAA welcomed it for providing a clear national standard in the face of “a patchwork of conflicting state laws and court decisions,” saying in a statement its Board of Governors would conform its policy accordingly.
The change came in less than 24 hours, applying immediately to all sports separated by gender. Member schools would be responsible for certifying eligibility and “the application of this policy may not be waived.”
Transgender men would still be eligible to compete in men’s sports as long as they meet all other eligibility requirements, the policy said.
However, an athlete who was assigned female at birth and who has begun hormone therapy such as testosterone injections may not compete on a women’s team.
LGBTQ rights organizations condemned Trump’s executive order as unconstitutional and based on misstatements and distortions about transgender people.
One group, Advocates for Trans Equality, on Wednesday singled out the NCAA for criticism, saying in a statement, “A4TE condemns the National Collegiate Athletic Association’s move to pre-emptively comply with a blatantly discriminatory and unconstitutional policy.”
The Trump order also threatens to cut off federal funding for any high schools that allow transgender girls to compete in female sports, and it seeks to pressure the International Olympic Committee to ban trans athletes and deny visas to trans women and girls who seek to enter the U.S. to compete.
The IOC allows transgender athletes to compete so long as competition remains fair.
The committee was noncommittal in response to Mr. Trump’s orders, saying in a statement, “Working with the respective International Sports Federations, the IOC will continue to explain and discuss the various topics with the relevant authorities.” – Reuters
Trump to create religious office in White House, target ‘anti-Christian bias’
U.S. President Donald Trump said on Thursday he would create a White House faith office and direct Attorney General Pam Bondi to lead a task force on eradicating what he called anti-Christian bias within the federal government.
Mr. Trump delivered remarks at the National Prayer Breakfast at the U.S. Capitol and used his speech to call for “unity”, telling lawmakers his relationship with religion has “changed” after a pair of failed assassination attempts last year.
At a second prayer breakfast in Washington, Mr. Trump struck a more partisan tone, took a victory lap for getting “rid of woke over the last two weeks” and announced steps to protect Christians from what he said was religious discrimination.
“The mission of this task force will be to immediately halt all forms of anti-Christian targeting and discrimination within the federal government, including at the DOJ, which was absolutely terrible, the IRS, the FBI and other agencies,” Mr. Trump said.
He vowed his attorney general would work to “fully prosecute anti-Christian violence and vandalism in our society and to move heaven and earth to defend the rights of Christians and religious believers nationwide.”
The president did not cite specific examples of anti-Christian bias during his remarks but has previously claimed that the Biden administration used the federal government to target Christians specifically.
Mr. Trump signed an executive order on Thursday to establish the task force and its responsibilities, which include recommending steps to terminate “violative policies, practices, or conduct.”
Mr. Biden’s administration announced a strategy in December for countering anti-Muslim and anti-Arab bigotry, and a similar plan to fight antisemitism in September 2023.
The actions announced on Thursday could pose constitutional questions about the separation of church and state, with the U.S. Constitution’s First Amendment limiting government endorsement of religion.
Mr. Trump, who has become the de facto figurehead of conservative American Christianity, has repeatedly invoked a religious anointing since he survived an assassination attempt last year. “Many people have told me that God spared my life for a reason,” Trump has told supporters at events around the country.
In the last three election cycles, White evangelical Christian voters, who make up a critical piece of the Republican base, have supported Trump. He has embraced the conservative Christian world view and policies that speak to the bloc’s anxiety about changing gender norms and family patterns.
The president on Thursday also announced he will create a White House Faith Office, led by Rev. Paula White, who has served as a religious adviser to him for many years.
Mr. Trump established a similar office at the White House during his first term and regularly consulted with a tight group of evangelical advisers.
Mr. Trump also said he would create a new commission on religious liberty, and criticized the Biden administration for the “persecution” of believers for prosecuting anti-abortion advocates.
“If we don’t have religious liberty, then we don’t have a free country,” he said.
In 2023, the National Prayer Breakfast split into two events, the one on Capitol Hill attended by lawmakers and a separate private event for thousands at a hotel ballroom after some lawmakers sought to distance themselves from the private religious group following questions over how it was run and funded. – Reuters
Trump’s Paris AI summit delegation won’t include AI Safety Institute staff, sources say
The U.S. delegation to a major artificial intelligence summit in Paris next week will not include technical staff from the country’s AI Safety Institute, two people close to Washington’s plans for the event and a third source briefed on the matter told Reuters.
Vice President JD Vance is leading the U.S. contingent to France, which is gathering around 100 countries to focus on AI’s potential on February 10 and 11.
U.S. attendees will include members of the White House Office of Science and Technology Policy: Principal Deputy Director Lynne Parker and Senior Policy Advisor for Artificial Intelligence Sriram Krishnan, an OSTP spokesperson said.
However, President Donald Trump’s administration has scrapped plans for Homeland Security and Commerce Department officials to attend. Among those whose trips were canceled include representatives of the U.S. AI Safety Institute, said the people close to Washington’s plans, who spoke on condition of anonymity.
The AI Safety Institute did not immediately comment. The Commerce and Homeland Security departments did not immediately respond to a request for comment.
The institute, created under former President Joe Biden, is focused on measuring and mitigating certain risks from AI and has signed agreements with prominent U.S. startups OpenAI and Anthropic for safety testing. It has said its work is bipartisan.
However, the new administration’s plans for the fledgling body, now without a director, remain unclear. Trump has revoked a separate AI executive order associated with Biden.
The people cautioned that the Paris absence likely reflected how the Commerce Department, in which the institute resides, was still in transition after Trump’s January 20 inauguration.
The Paris summit also is less focused than prior global gatherings in Bletchley Park and Seoul on the dangers of AI, risks dismissed by some in the technology sector.
The International Network of AI Safety Institutes, chaired by the United States and comprised of various country members globally, is expected to have a presence, the people said. Its long-in-progress work has involved the U.S.
U.S. delegates could take part in the network’s discussions, the people said. Ensuring Washington leads on innovation has become more critical with China’s recent success in AI, the people said. – Reuters
US service member, three contractors killed in Philippines aircraft crash
WASHINGTON – One U.S. military service member and three defense contractors were killed on Thursday when their aircraft crashed in the Philippines.
In a statement, the U.S. military said the aircraft, which was contracted by the U.S. military, had been carrying out intelligence and surveillance support.
It did not say why the crash occurred or what type of aircraft it was. – Reuters
Unemployment rate lowest since ’05
By Chloe Mari A. Hufana, Reporter
PHILIPPINE UNEMPLOYMENT eased to 3.1% in December amid a surge in hiring in the transport and storage sector, bringing the full-year average to a record-low of 3.8%, according to the statistics agency.
Preliminary data from the Philippine Statistics Authority’s (PSA) Labor Force Survey showed the jobless rate in December was unchanged from the same month in 2023, but slightly lower than 3.2% in November.
The number of unemployed Filipinos increased to 1.63 million in December, up from 1.6 million in the prior year but slightly lower than 1.66 million in November.
December also saw the lowest unemployment rate 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 2024, National Statistician Claire Dennis S. Mapa said the jobless rate averaged 3.8% which is equivalent to 1.94 million jobless Filipinos. This was lower than the 4.4% jobless rate, representing 2.19 million jobless Filipinos, in 2023.
The full-year unemployment rate in 2024 was also the lowest since 2005.
The modest drop in unemployment in December 2024 was attributed to a surge in hiring for transport and storage workers during the holiday season, Mr. Mapa said, noting the sector recorded an additional 184,000 workers month on month.
Year on year, the sector gained 555,000 workers.
“Most of this is from passenger transport by road, and this is an effect of our holiday season,” Mr. Mapa said in mixed English and Filipino at a news briefing in Quezon City.
“We can observe growth in airport shuttle services, taxi operations, and passenger land transportation overall. This indicates positive movement in the sector. Additionally, we’ve seen an increase in the use of buses for public transport,” he added.
Meanwhile, job quality worsened year on year as the underemployment rate slipped to 10.9% (5.48 million), from 11.9% (6.01 million) in December 2023. Month on month, the underemployment rate went up from 10.8% (5.35 million) in November.
This was also the lowest underemployment rate since April 2005 when the PSA redefined underemployment as individuals who are employed but seek additional jobs or work hours.
For 2024, the average underemployment rate fell to 11.9% from 12.3% in 2023. This translated to 5.83 million underemployed Filipinos last year, lower than 5.94 million in 2023, Mr. Mapa said.
Labor Secretary Bienvenido E. Laguesma said the December 2024 Labor Force Survey showed the government’s efforts, with the support of the private sector, are paying off and gaining ground.
“We will continue to work in collaboration with the private sector towards job creation to ensure a more permanent source of income and decent living conditions for our workforce,” he told BusinessWorld in a Viber chat. “If there are more jobs, access to these opportunities will be open to and available for workers, even to those in the informal sector.”
National Economic and Development Authority Secretary Arsenio M. Balisacan said in a statement that strategies to strengthen the labor market are “crucial to sustaining our economic momentum and providing higher earning opportunities for Filipinos.”
“The government remains committed to advancing both supply- and demand-side measures that will foster a more dynamic labor environment and meet the targets set in the Philippine Development Plan 2023-2028,” he said.
Finance Secretary Ralph G. Recto said the government will continue to push for initiatives that create quality jobs for Filipinos.
“We are focusing heavily on improving education, infrastructure, and human development to ensure that we build a Filipino workforce equipped with the tools and opportunities they need to compete on the global stage,” Mr. Recto said in a statement, emphasizing workforce upskilling.
EMPLOYMENT RATE
Meanwhile, the PSA also reported that the employment rate slightly improved to 96.9%, equivalent to 50.19 million employed Filipinos in December from 96.8% in November when there were 49.54 million employed Filipinos.
The employment rate was unchanged from December 2023. However, there were slightly more employed Filipinos at 50.52 million in December 2023.
For 2024, the average employment rate rose to 96.2%, from the 95.6% logged in 2023. This is equivalent to 48.85 million employed Filipinos in 2024, higher than the 2023 average of 48.18 million.
Meanwhile, the labor force participation rate (LFPR) fell to 65.1% in December from 66.6% in December 2023. This represented a labor force of 51.81 million, lower than 52.13 million in December 2023.
University of the Philippines School of Labor and Industrial Relations Assistant Professor Benjamin B. Velasco said the modest decline in LFPR showed persistent challenges in job creation.
“Population will always be increasing, so that is a given. Population growth drives consumption and also production, so it is not a negative factor itself though large increases in population do present a challenge to policy making, including labor market governance,” he said in a Facebook Messenger chat.
“The problem of job creation is also bared in the significant decrease in youth LFPR.”
The youth LFPR declined to 31.9% in December from 34.5% in December 2023. The youth employment rate also dropped to 90.9% in December from 91.8% in the year prior.
SECTORAL GAINS AND LOSSES
PSA data also showed agriculture and forestry lost 1.56 million workers year on year in December.
Mr. Mapa attributed the losses to the series of typhoons that hit the country in the fourth quarter, noting that about 557,000 of them were paddy rice farmers.
Workers engaged in planting, transplanting and other related activities lost 424,000 workers year on year in December. Hog farming lost 236,000 jobs as African Swine Fever (ASF) continued to affect production.
Month on month, the agriculture and forestry sector saw the highest increase as an additional 735,000 workers were hired.
At the same time, the sector covering wholesale and retail trade, and repair of motor vehicles and motorcycles, recorded the greatest number of job losses at 391,000 month on month in December.
Mr. Mapa said 294,000 of those job losses came from the retail sales sector that includes stalls, markets, food and beverages, and tobacco products.
About 219,000 workers involved in accommodation and food service activities also lost their jobs in December 2024, despite the surge in holiday activities.
The services sector had the most number of employees, contributing 60.5% to the total workforce.
The agriculture and industry sectors followed, representing 21.3% and 18.3% of the total number of employed individuals, respectively.
WAGE AND SALARY WORKERS
Wage and salary laborers continued to account for the bulk or 63.1% of employed Filipinos in December 2024, followed by self-employed individuals without any paid employees (28.5%), unpaid family workers (6.8%) and employers in their own family-operated farm or business (1.6%).
Among wage and salary workers, those employed in private establishments accounted for 78.9%, while those employed in government or government-controlled corporations represented 14.4%.
Wage and salary workers are people who are paid for their work in private establishments, government, or their own family-run business, the PSA said on its website.
Federation of Free Workers President Jose Sonny G. Matula urged the government to raise wages to boost workers’ purchasing power and increase demand for local goods and services.
“Contrary to employers’ contention, wage hikes support our farmers, fisherfolk, and informal sector workers because workers buy their products due to increased purchasing power,” he said in a Viber chat.
While the record-low unemployment rate for December 2024 is a good thing, Mr. Matula said it is not surprising.
“Employment almost always goes up because of the increased purchasing power of workers who are consumers, too. Workers doubled or tripled their incomes due to 13th month and Christmas or year-end bonuses,” he said.
“But before we break out the confetti, let’s not forget: the quality of these jobs still leaves a lot to be desired. Jobs generated were temps.”
On Monday, the House of Representatives approved on second reading a bill granting a P200 hike for minimum wage earners. The Senate approved a counterpart bill for P100 in February last year.
Within-target inflation may prompt further rate cuts
By Luisa Maria Jacinta C. Jocson, Reporter
THE BANGKO SENTRAL ng Pilipinas’ (BSP) rate-cutting cycle will be supported by expectations of inflation settling well within target this year, analysts said.
“The low inflation print for January indicated that price pressures were still generally benign and manageable, which supports expectations for inflation to remain within the BSP’s 2-4% target going forward,” Chinabank Research said in a report.
“This should provide room for further interest rate cuts by the BSP,” it added.
The Philippine Statistics Authority on Wednesday reported headline inflation remained steady at 2.9% in January, within the central bank’s 2-4% target band.
Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco expects inflation to average 2.7% this year amid “increasingly clear bottoming-out in official core inflation.”
“Our revised yearly forecast implies that headline inflation should remain relatively steady from here on out, ranging between 2.5% and 3% for the remainder of this year, comfortably within the BSP’s target range,” he added.
The BSP projects inflation to settle at 3.3% this year. It earlier said inflation will likely “remain anchored to the target range over the policy horizon.”
However, risks to the inflation outlook continue to lean towards the upside, it said. Accounting for risks, inflation could average 3.4% this year.
“Looking ahead, while inflation for 2025 is expected to remain within the BSP target range, potential risks such as local weather disturbances and geopolitical tensions must be closely monitored,” Manulife Investment Management Head of Fixed Income Jean O. de Castro said.
Chinabank Research likewise said upside risks to the inflation outlook include adverse weather and geopolitical conflicts, which would “continue to support a cautious approach to policy easing.”
Despite this, analysts expect the BSP to deliver another rate cut at its first policy review for the year next week (Feb. 13).
“This favorable inflation outlook, along with the Philippine economy’s weaker-than-expected performance in both the fourth quarter and full-year 2024, reinforces our view that the BSP will likely cut interest rates by 25 basis points (bps) at its policy meeting next week,” Chinabank said.
The Philippines’ gross domestic product (GDP) grew by a weaker-than-expected 5.2% in the fourth quarter.
This brought full-year 2024 growth to 5.6%, short of the government’s 6-6.5% target.
BofA Securities economist for the Philippines Jojo Gonzales said they expect the central bank to cut rates by 25 bps next week.
“However, if inflation remains stubbornly high in February or March, our expectation for an April cut in policy rates could be at risk,” Mr. Gonzales said.
“Our expectation is for a 25-bp rate cut in February and another 25-bp cut in April, while the US Fed stays on hold,” he added.
BSP Governor Eli M. Remolona, Jr. has said a rate cut is still on the table for its meeting next week.
For 2025, Mr. Remolona said the central bank could cut by a total of 50 bps this year, as 75 bps or 100 bps may be “too much.”
The Monetary Board began its easing cycle in August last year, reducing borrowing costs by a total of 75 bps by end-2024.
Ms. De Castro said that the start of monetary easing will help support economic growth.
“Furthermore, the delayed effects of the BSP’s 75-bp monetary easing in the previous year, alongside expected further rate cuts in 2025, are likely to support economic expansion,” she said.
“By fostering a conducive investment environment and maintaining prudent fiscal and monetary policies, the Philippine economy can work toward achieving its growth objectives.”