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Peso climbs to near 14-month high with more rate cuts likely

BW FILE PHOTO

THE PESO surged to a near 14-month high against the dollar on Wednesday after the Bangko Sentral ng Pilipinas (BSP) chief signaled further policy easing following the better-than-expected April inflation outturn.

The local unit closed at P55.396 per dollar on Wednesday, strengthening by 21.4 centavos from its P56.61 finish on Tuesday, Bankers Association of the Philippines data showed.

This was the peso’s strongest finish in almost 14 months or since its P55.31-a-dollar close on March 12, 2024.

The peso opened Wednesday’s trading session stronger than Tuesday’s close at P55.40 against the dollar. Its worst showing was at just P55.48, while its intraday best was at P55.215 versus the greenback.

Dollars traded went down to $2.07 billion on Wednesday from $2.28 billion on Tuesday.

“The peso initially traded at P55.215 after BSP Governor Eli M. Remolona, Jr. said the central bank will not intervene with the peso’s strength but slightly bounced in response to the BSP chief’s statements signifying 75 basis points (bps) more in rate cuts this year,” the first trader said in a phone interview.

“The peso recovered following the cooler-than-expected Philippine inflation report,” the second trader said in an e-mail.

Mr. Remolona signaled that authorities are unlikely to intervene to curb the strength in the peso, Bloomberg reported.

“This is a story of dollar weakness,” Mr. Remolona said in a mobile-phone message on Wednesday. “To intervene now would be to go against the tide.”

The stance of the Bangko Sentral ng Pilipinas stands in contrast to peers in Taiwan and Hong Kong, who have intervened in the market to slow the pace of appreciation in their currencies.

Mr. Remolona also said on Wednesday that the 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.

Philippine headline inflation slowed 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 conducted last week.

For Thursday, the first trader expects the peso to move between P55 and P55.60 per dollar, while the second trader sees it ranging from P55.50 to P55.75. — Aaron Michael C. Sy with Bloomberg

PHL to host military drills with US, Japan, Korea, UK

PHILIPPINE STAR/WALTER BOLLOZOS

By Adrian H. Halili, Reporter

THE Philippines will host a joint military training with the US, Japan, South Korea and the UK aimed at improving military readiness, interoperability and regional defense capabilities.

In a statement on Wednesday, the US Indo-Pacific Command (US PACOM) said the joint exercise dubbed Kamandag 9, is scheduled for May 26 to June 6 across Luzon, Batanes, Tawi-Tawi and Palawan. The exercise has been held since 2016.

“The expanded scope and participation this year highlight the global importance of maritime security, the value of building multinational maritime domain awareness and a shared commitment to peace and stability in the Indo-Pacific,” the US PACOM said.

It added that training events would include maritime key terrain security operations, defensive counter-landing live-fire drills, littoral maneuver, amphibious operations and humanitarian assistance and disaster relief training.

The exchanges will cover logistics, engineering, special operations, unmanned aerial reconnaissance, marksmanship, air defense, medical readiness, chemical, biological, radiological and nuclear training.

“Training shoulder-to-shoulder with our Philippine Marine Corps partners isn’t just about building interoperability; it’s about forging trust in the crucible of shared hardship and preparing together to respond with speed and precision to any crisis, anywhere, anytime,” said Colonel Jason C. Armas, commanding officer of the Marine Rotational Force -— Darwin  25.3 Marine Air-Ground Task Force.

The joint exercise is expected to bring together members of the Armed Forces of the Philippines, I and III Marine Expeditionary Forces, Japan Ground Self-Defense Force, Republic of Korea Marine Corps and the UK Armed Forces.

“By operating jointly in complex environments, we are strengthening our capability to defend the archipelago and contributing to a secure and stable Indo-Pacific,” Philippine Marine Corps Commandant Major General Arturo G. Rojas said in the statement.

Josue Raphael J. Cortez, a diplomacy instructor at De La Salle-College of St. Benilde’s School of Diplomacy and Governance, said the upcoming exercise would be an avenue for the Philippines to improve its defense capabilities.

“This is because our troops would not merely share best practices with the United States and the UK, but also alongside some of our neighbors in the east,” he said in a Facebook Messenger chat.

Philippine and US forces are set to conclude their annual Balikatan (shoulder-to-shoulder) military exercise on May 9.

More than 14,000 Filipino and American troops are participating in the drills, held in areas of the Philippines facing regional flashpoints like the South China Sea and Taiwan, and featuring advanced US missile systems.

Mr. Cortez added that the Philippines’ foreign counterparts have better access to the latest trends in combat operations.

“This can also be a platform where they can engage in dialogue with one another, foster solidarity and be the impetus on how we can collaborate with them in our continuous pursuit of modernizing our military,” he added.

China’s increasing assertiveness in the South China Sea has prompted the Philippines to seek more foreign defense agreements.

Chester B. Cabalza, founding president at Manila-based think tank International Development and Security Cooperation, said in a Facebook chat that Manila should improve its land warfare capabilities.

“With its close neighbors Japan and Korea being a part of this initiative, the Chinese government might undertake actions geared towards deterring Japan and South Korea from further deepening its ties with the Philippines,” Mr. Cortez said.

Mr. Cabalza said China should refrain from interfering in the country’s defense affairs.

Philippine-China ties have worsened in recent years due to repeated encounters between their coast guard ships in the South China Sea over competing claims on the Spratly Islands and Scarborough Shoal, among other sea features.

China claims more than 80% of the South China Sea based on a 1940s map, which a United Nations-backed arbitration court in The Hague voided in 2016 for being illegal.

PSEi extends climb as BSP chief signals more cuts

BW FILE PHOTO

PHILIPPINE SHARES climbed further on Wednesday on hopes for further rate cuts from the Bangko Sentral ng Pilipinas (BSP) amid easing inflation and with the United States and China set to hold trade talks.

The bellwether Philippine Stock Exchange index (PSEi) increased by 0.72% or 46.76 points to close at 6,465.45, while the broader all shares index went up by 0.59% or 22.26 points to 3,768.38.

Market sentiment was broadly positive as the PSEi traded as high as 6,531.99 intraday but gave up some of its gains before the closing bell.

“The local market extended its rise as investors continued to digest the Philippines’ April inflation of 1.4%, which is seen to give the BSP more room to cut policy rates,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “Investors also cheered the progress between the US-China relations as representatives from the two countries are set to discuss trade matters this week.”

“Philippine shares were bought up second day straight post-inflation with the local bourse reaching 6,500 level, but gains were tempered by profit taking later in the session,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The Philippine central bank is open to cutting its key interest rate by a further 75 basis points (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 easing cycle after an unexpected pause in February as it slashed benchmark rates by 25 bps, bringing the policy rate to 5.5%.

Meanwhile, US Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet China’s economic tsar He Lifeng in Switzerland for trade talks this weekend.

Almost all sectoral indices closed higher on Wednesday. Industrials rose by 1.36% or 122.24 points to 9,112.02; services increased by 1.18% or 24.22 points to 2,072.38; financials went up by 1.13% or 27.77 points to 2,486.22; mining and oil climbed by 0.16% or 16.10 points to 9,721.48; and holding firms inched up by 0.08% or 4.46 points to 5,391.64.

Meanwhile, property declined by 0.35% or 8.16 points to 2,292.81.

Value turnover increased to P8.27 billion on Wednesday with 958.47 million issues traded from the P6.15 billion with 876.09 million shares exchanged on Tuesday.

Advancers beat decliners, 113 versus 72, while 48 issues were unchanged.

Net foreign buying went down to P671.55 million on Wednesday from P690.87 million on Tuesday. — Revin Mikhael D. Ochave with Bloomberg

Poor but bright lad from Quezon City tops PMA Class of 2025

JESSIE R. TICAR (front center) with the PMA Class of 2025 Top 10. — PHILIPPINE STAR/ANDY ZAPATA, JR

By Artemio A. Dumlao, Contributor

FORT DEL PILAR, Baguio City — The 23-year-old son of a former taxi driver and vendor from Quezon City is the top graduating cadet of the Philippine Military Academy (PMA) Class of 2025.

Jessie R. Ticar, Jr. never dreamed to become a soldier, but a difficult childhood back in the slums of Batasan Hills near the Philippine capital inspired him to study hard.

“I came to a point when I had to decide if I’ll continue [in the university],” the valedictorian of the 266-member class Siklab-Laya, said in an interview. Before the PMA, he enrolled at the Polytechnic University of the Philippines in Manila where he was a “President’s Lister.”

Mr. Ticar said he only wanted to support his family and help his father, who stopped driving a taxi after a serious car accident. His mother, who sold ballpens and trinkets in the streets of Quezon City, had to single-handedly “carry their cross.”

“Such was my motivation,” said Mr. Ticar, who is getting the Presidential Saber award from President Ferdinand R. Marcos Jr. during graduating rites on May 17 here. He is only one of four PMA graduates to graduate summa cum laude.

The soon to be Philippine Army Second Lieutenant will also receive the JUSMAG Saber, Tactics Group Award, Natural Sciences plaque, Army Saber, Australian Defense Best Overall Performance Award, General Antonio Luna Award and Humanities Plaque.

At the PMA, Mr. Ticar discovered “a deeper calling — to serve our country,” and realized that he could use his abilities to help boost national security.

PMA Superintendent Vice Admiral Caesar Bernard N. Valencia described the Siklab-Laya class of 2025 as full of grit. He said Mr. Ticar achieved the highest average grade in PMA history.

He also cited class salutatorian Murthan P. Zabala, 24, a Visayan from the village of Tejero in Cebu City who despite having taken a medical leave because of a training injury in 2023 still emerged as No. 2.

Mr. Zabala, who is also going to the Philippine Army as a second lieutenant after graduation, is receiving the Vice Presidential Saber, Academic Group Award, Management Plaque, National Security Studies Plaque, Spanish Armed Forces Saber, Information Technology Plaque and Social Sciences Plaque.

The 2025 class made history by having a summa cum laude in Mr. Ticar, four magna cum laude and six cum laude graduates, Mr. Valencia said.

Twenty-three-year-old would-be Navy Ensign Joana Marie D. Viray from Villamor Air Base in Pasay City ranked third in the 2025 graduating class. The daughter of a retired soldier and a teacher, she is graduating cum laude and will get the Australian Defense Best Overall Performance Award, Philippine Navy Saber and Secretary of National Defense Saber.

Mr. Valencia said Siklab-Laya is the first batch of graduates to have headed to the Pag-asa Island (Thitu Island) in the South China Sea a few months ago. It is also the first class to send four participants to the International Forum on Peace, Security and Prosperity in Palermo, Sicily and the first class to participate in the International Sailing Regatta.

He said everyone is prepared, adding that “each possesses character, skills, competence and principles a military officer is molded into for the future.”

ICC rejects Duterte’s inhibition plea

THE International Criminal Court’s (ICC) has rejected a plea by former Philippine President Rodrigo R. Duterte’s legal team to bar two judges from deciding on whether the court has the authority to hear his case.

In a four-page decision on May 6, the court’s Pre-Trial Chamber ruled that the defense could not seek the inhibition of judges Reine Adelaide Sophie Alapini-Gansou and Maria del Socorro Flores Liera.

The decision was signed by Presiding Judge Iulia Antoanella Motoc.

Earlier, the tough-talking leader’s lawyers challenged the ICC’s jurisdiction over the Philippines.

On the same day, the defense also sought the inhibition of the judges, citing the potential for “perceived bias.”

Both judges were part of the panel that had authorized the preliminary investigation into Mr. Duterte.

Meanwhile, palace spokesperson Clarissa A. Castro on Wednesday said high-ranking government officials instructed by the Ombudsman to submit a counter-affidavit regarding Mr. Duterte’s arrest would adhere to the order.

“Given the quick action taken by the Ombudsman regarding the complaint filed by Senator [Ma. Imelda Josefa Remedios “Imee” R.] Marcos, we will respond accordingly,” she told a news briefing in Filipino. “The officials in question will respond, and they will submit their counter-affidavits.”

The Justice and Interior secretaries, national police chief, Crime Investigation and Detection Group director and special envoy on transnational crimes of the Foreign Affairs department were given 10 days to comment on the findings of irregularity by the Senate foreign relations committee on Mr. Duterte’s arrest in March.

The 80-year-old maverick ex-mayor is now under ICC custody, awaiting a trial set for September.

He is under investigation for his alleged crimes against humanity in connection with his government’s bloody war on drugs. — Chloe Mari A. Hufana

Bilang Pilipino sets 31-hour election coverage

MEDIAQUEST Holdings Inc. is rolling out extensive midterm election coverage with Bilang Pilipino, a 31-hour, multi-platform news special on May 12.

It has enlisted a lineup of high-profile journalists to lead real-time analysis and reporting, te company said in a statement on Wednesday.

“With Bilang Pilipino, we are committed to delivering unmatched election coverage in terms of breadth, depth and expertise,” Jane Jimenez-Basas, president and chief executive officer at MediaQuest and Cignal, said in a statement on Wednesday.

The coverage will integrate data-driven insights and live reports from 30 key locations nationwide.

Live coverage begins at 4 a.m. on May 12 on News5 and at 5 a.m. on One News, with simulcasts across RPTV, One PH, True TV, True FM and digital platforms.

News5 will air programming in Filipino, while One News will deliver English-language content.

“We have assembled the most trusted names in the industry, combined with the latest technology and resources, to ensure that Filipinos receive the most accurate and insightful information,” Ms. Basas said.

The May 12 elections are considered a high-stakes election cycle that will determine the composition of the Philippine Congress and local government units nationwide.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Chloe Mari A. Hufana

Comelec probes Bangued fire

GEORGE ERWIN M. GARCIA — PHILIPPINE STAR/RYAN BALDEMOR

THE Commission on Elections (Comelec) is investigating the burning of a voting center in Abra’s capital of Bangued on Wednesday morning, its chairman said.

Chairman George Erwin M. Garcia noted that while there have been recommendations to place Abra under Comelec control, the Commission en banc would first evaluate the area’s peace and order situation before making a decision.

“We assure the people of Bangued, Abra not to be afraid,” he told a news briefing in Filipino. “We will increase the presence of our security personnel there.”

“We are still determining what caused the fire and whether it was intentionally set due to the upcoming elections,” he added.

He said automated counting machines had not yet been delivered to the voting center at the time of the fire. About 70% of the facility was destroyed in the blaze. — Chloe Mari A. Hufana

Camiguin-grid link being studied

THE National Electrification Administration (NEA) is exploring the possibility of connecting Camiguin Island to the Mindanao power grid via submarine power cables.

In a statement on Wednesday, NEA said it had signed an agreement with Madrid-based engineering consultancy firm Osprel SL to conduct a study on the feasibility of the Camiguin-Mindanao energy link. The study is expected to be completed next year.

The project includes electrical, bathymetric, meteorological and environmental studies that will provide power supply to Camiguin island.

“This is a meticulous and technically demanding endeavor, but it is precisely what we need if we want to move forward with real solutions and build lasting and sustainable progress,” NEA Administrator Antonio Mariano C. Almeda said in the statement.

Energy Assistant Secretary Mylene C. Capongcol said the feasibility study would also advance the country’s energy infrastructure development and likely result in the development of a 69-kiloVolt (KV) submarine cable replacing the 13.2 kV line.

“This connection will allow the integration of renewables in Camiguin,” the agency said. — Ashley Erika O. Jose

5 BIFF fighters surrender

PHILIPPINE STAR/JOHN FELIX M. UNSON

COTABATO CITY — Five more local terrorists, all experts in making improvised bombs, surrendered to a Philippine Army unit in Datu Salibo, Maguindanao del Sur and vowed to reform for good in the presence of local officials and representatives from the Bangsamoro regional government.

The five members of the Bangsamoro Islamic Freedom Fighters (BIFF) turned in their firearms and explosives to officials of the 48th Infantry Battalion led by Lieutenant Colonel Kenny Rae C. Tizon, before they renounced their membership in the BIFF during rites in the town center of Salibo on Tuesday.

Major General Donald M. Gumiran, commander of the Army’s 6th Infantry Division, told reporters on Wednesday local officials and Moro community elders had helped the 48th Infantry Brigade and Brigadier General Edgar L. Catu of the 601st Infantry Brigade in convincing the five terrorists to surrender. — John Felix M. Unson

Jeepney consolidation reopened

PHILIPPINE STAR/WALTER BOLLOZOS

THE Department of Transportation (DoTr) has reopened the application for public utility vehicle (PUV) consolidation under the Public Transport Modernization Program.

In a statement on Wednesday, the agency said it had issued an order allowing PUV operators and drivers to join existing cooperatives or form their own to operate in routes with similar entities.

Consolidation is a key component of the modernization program, which seeks to eventually replace traditional jeepneys with modern ones that have at least a Euro-4-compliant engine to cut pollution.

According to the Department Order No. 2025-009 dated May 6, it only covers public utility jeepney and UV Express operators who had secured a provisional authority but failed to consolidate, or those with pending applications.

All provisional authorities secured by unconsolidated entities will be valid for a year and must be renewed in line, it said. — Ashley Erika O. Jose

Davao eyed for global hub

ANFLO Industrial Estate (AIE), the agro-industrial hub of Davao-based property developer Damosa Land, Inc (DLI), is looking to position Mindanao as an investment hub amid global economic challenges.

“AIE’s thriving ecosystem reflects the rising investor confidence in Mindanao as a strategic growth corridor,” DLI President and Chief Executive Officer Ricardo F. Lagdameo said in a statement on Wednesday. “We are unlocking long-term value for investors while creating inclusive, sustainable opportunities for the region.”

The 63-hectare masterplanned industrial space is near the Davao International Container Terminal, giving tenants direct access to international shipping routes and linking them to regional and global markets.

AIE offers fiscal and nonfiscal incentives to help ensure locators’ competitiveness amid global tariff uncertainties, it said.

The estate hosts 24 locators from six countries and is registered with the Philippine Economic Zone Authority. — Beatriz Marie D. Cruz

Nutrition plan rollout sought

PHILIPPINE STAR/MIGUEL DE GUZMAN

A PHILIPPINE senator on Wednesday called on the Education and Social Welfare departments and National Nutrition Council to ensure the proper rollout of government nutrition interventions to curb illiteracy.

“Nutrition and literacy are closely correlated,” Senator Sherwin T. Gatchalian said in a statement. “One way to break the cycle of illiteracy is to make sure that our children receive proper nourishment.”

“When children get the proper nutrition they need, they study better, learn better and become functionally literate,” he added.

About 19 million Filipinos with basic education are functionally illiterate, according to the Philippine Statistics Authority.

Mr. Gatchalian said provinces and highly urbanized cities with high stunting rates among children below five years old also suffer from low literacy rates. He added that local governments should also establish literacy councils as a solution. — Adrian H. Halili

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