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India’s Modi to host JD Vance in Delhi under US tariffs shadow

INDIAN PRIME MINISTER NARENDRA MODI — PHILLIPINES GOVERNMENT VIA PICRYL.COM

NEW DELHI – U.S. Vice President JD Vance begins a four-day visit to India on Monday and will hold talks with Prime Minister Narendra Modi, as New Delhi rushes to avoid steep U.S. tariffs with an early trade deal and boost ties with the Trump administration.

Their discussions will cover the first day of Vance’s largely personal visit to the country with his family, which includes visiting the Taj Mahal and attending a wedding in the city of Jaipur, people familiar with the matter said.

Mr. Vance’s wife, Usha, is the daughter of Indian immigrants.

Mr. Modi and Mr. Vance are expected to review progress made on the bilateral agenda outlined in February when the Indian leader met President Donald Trump in Washington. It includes “fairness” in their two-way trade and growing their defense partnership.

The Indian prime minister was one of the first world leaders to meet Trump after he took office, and Reuters has reported that his government is open to cutting tariffs on more than half of its imports from the U.S., which were worth a total $41.8 billion in 2024, as part of a trade deal.

However, the U.S. president has continued to call India a “tariff abuser” and “tariff king”.

“We are very positive that the visit will give a further boost to our bilateral ties,” Indian foreign ministry spokesperson Randhir Jaiswal told reporters on Thursday, speaking about Vance’s engagements in India.

The U.S. is India’s largest trading partner and their two-way bilateral trade reached $129 billion in 2024, with a $45.7 billion surplus in favor of India, U.S. government trade data show.

Officials in New Delhi are expecting to clinch a trade deal with the U.S. within the 90-day pause on tariff hikes announced by Trump on April 9 for major trading partners, including Delhi.

Mr. Vance’s tour in India is also seen as laying the ground for Mr. Trump’s visit to the country later in the year for the summit of leaders of the Quad grouping that includes India, Australia, Japan and the U.S.

Harsh Pant, foreign policy head at the Observer Research Foundation think tank in Delhi, said the timing of Vance’s visit was critical in the backdrop of trade talks.

“The fact that the US-China tensions are ramping up, and Vance in particular seems to have taken a very high profile role in American diplomacy, also means that the visit assumes an added layer of significance,” he said.

Mr. Vance will be accompanied by U.S. administration officials, but the two sides are unlikely to sign any deals during the visit, people familiar with the matter said.

India and the U.S. expect to ink a framework for defense partnership this year, while New Delhi also plans to procure and co-produce arms including Javelin anti-tank guided missiles and Stryker infantry combat vehicles, according to a joint statement issued after the February meeting.

Discussions on such procurements would be taken forward during U.S. Defense Secretary Pete Hegseth’s expected visit to India in the next couple of months, people familiar with the matter said. – Reuters

‘Secrets of the Penguins’ to be premiered on eve of Earth Day

STOCK PHOTO | Image by Barbara Dougherty from Pixabay

LONDON – Years of filming, often in extreme conditions, has provided new insights into the extraordinary challenges endured by penguins for a documentary series to be premiered on Monday, the eve of Earth Day.

“Secrets of the Penguins” is voiced by U.S. actor Blake Lively and hosted by National Geographic explorer Bertie Gregory, who hopes to engage the widest possible audience with the natural world.

He says filming that included 274 days on the Ekström Ice Shelf in Antarctica, home to around 20,000 emperor penguins, as well as in locations from Cape Town in South Africa to the Galapagos Islands, led to discovering “new penguin secrets”.

“I have filmed penguins a lot before,” he said. “I thought I knew penguins. I was so wrong.”

The three-part series, to be screened on Disney+ on Monday, and on Nat Geo Wild from Tuesday, in all took more than two years to film.

The highlights include penguin chicks jumping off a 50-foot (15 m) ice cliff in order to dive into the sea for the first time in their young lives.

“As soon as the first one went … they all started to jump. It was an amazing moment to witness,” Mr. Gregory said, adding the exploit has never been broadcast before.

“They’re the only animal in the world to raise their young during the Antarctic winter. It is the coldest, darkest, windiest place on Earth,” he said further.

Mr. Gregory says the significance goes beyond any one species.

“We should want to look after penguins, not just because it makes us feel warm and fuzzy inside, but because we need healthy, wild places for so many things,” he said.

The 31-year-old explorer has two Daytime Emmy Awards for the series “Animals Up Close with Bertie Gregory” and a BAFTA Television Craft Award for shooting British naturalist David Attenborough’s “Seven Worlds, One Planet”.

He does not see himself taking on the mantle of the 98-year-old Attenborough, who is still at work. “He’s one of a kind,” Gregory said. “There is no replacement.” – Reuters

South Korea finds ‘Made in Korea’ breaches intended to avoid US tariffs

STOCK PHOTO | Image by StockSnap from Pixabay

SEOUL – South Korea has found rising attempts to disguise foreign products as Korean exports, mostly from China, to avoid U.S. President Donald Trump‘s sweeping tariffs, its customs agency said on Monday.

The Korea Customs Service said it has found 29.5 billion won ($20.81 million) worth of country-of-origin violations from the first quarter, with U.S.-bound shipments accounting for 97% of the total, after a special probe last month.

That compared to a total of 34.8 billion won worth of violations for all of 2024, among which U.S.-bound shipments accounted for 62%.

Since taking office in January, Mr. Trump has introduced big tariffs on various products and countries that started to come into force in March.

South Korean officials have said there could be a rise in attempts by foreign companies, such as those in neighboring China, to use South Korea, which is a major U.S. ally and has a free-trade pact, as a bypass to avoid tariffs and regulations.

Mr. Trump slapped 25% tariffs on South Korea this month, which were later suspended for three months. The U.S. now imposes 145% tariffs on China after back-and-forth retaliatory actions, which economists say have severed trade between the world’s two biggest economies.

Monday’s findings include 3.3 billion won worth of cathode materials used for batteries, imported from China and shipped to the U.S. with South Korea falsely marked as the country of origin, to avoid already high tariffs in January even before Trump’s tariffs took effect.

In March, 19.3 billion won worth of surveillance cameras were imported from China in parts and reassembled in South Korea to bypass U.S. restrictions on Chinese communication devices.

The Korea Customs Service has launched a special task force to prevent illegal export attempts and plans to come up with more specific response measures to protect domestic companies. – Reuters

Kyiv and Moscow accuse each other of countless violations of one-day Easter ceasefire

Army soldier figurines are displayed in front of the Ukrainian and Russian flag colors background in this illustration taken, Feb. 13, 2022. — REUTERS/DADO RUVIC/ILLUSTRATION

MOSCOW/KYIV – Russia and Ukraine accused each other of thousands of attacks that violated the one-day Easter ceasefire declared by President Vladimir Putin, with the Kremlin saying there was no order to extend the pause in frontline fighting.

Washington said it would welcome an extension of the truce, and President Volodymyr Zelenskiy reiterated several times Ukraine’s willingness to pause strikes for 30 days in the war.

But Mr. Putin, who sent thousands of Russian troops into Ukraine in February 2022 and who ordered on Saturday the halt in all military activity along the front line until midnight Moscow time (2100 GMT) on Sunday, did not give orders to extend it.

“There were no other commands,” Russia’s TASS state news agency cited Kremlin’s spokesman Dmitry Peskov as saying when asked whether the ceasefire could be prolonged.

While there were no air raid alerts in Ukraine on Sunday, soon after midnight on Monday the Ukrainian air force issued alerts for east and southeast regions of the country, warning of missile and drone strikes.

Ukrainian forces reported nearly 3,000 violations of Russia’s own ceasefire vow, Mr. Zelenskiy said early on Monday, adding that Kyiv forces were instructed to mirror Russian army’s actions.

“We will respond to silence with silence, our strikes will be to protect against Russian strikes,” Mr. Zelenskiy said in a post on the Telegram messaging app.

The largest number of Russian shelling and assault operations took place along the frontline part near the embattled eastern town of Pokrovsk, Mr. Zelenskiy said.

Late on Sunday, Mr. Zelenskiy said the absence of air raid alerts suggested a “format of ceasefire that has been achieved,” and he proposed that Russia abandon drone and missile strikes on civilian targets for at least 30 days.

If Russia does not agree, it will be proof that it intends to continue doing only those things that destroy human lives and prolong the war, Mr. Zelenskiy added.

In a separate Easter video message, Mr. Zelenskiy urged Ukrainians not to give up hope that peace will one day return.

“We know what we are defending,” said Mr. Zelenskiy, wearing a traditional Ukrainian embroidered shirt and standing in front of Saint Sophia’s Cathedral in Kyiv. “We know what we are fighting for.”

Russia’s Defense Ministry said Ukraine had broken the ceasefire more than 1,000 times, damaging infrastructure and causing civilian deaths.

The ministry said Ukrainian forces had shot at Russian positions 444 times and said it had counted more than 900 Ukrainian drone attacks, including on Crimea and the Russian border areas of the Bryansk, Kursk and Belgorod regions.

“As a result, there are deaths and injuries among the civilian population, as well as damage to civilian facilities,” the ministry said.

Reuters was unable to immediately verify the battlefield reports.

The apparent failure to observe even an Easter ceasefire shows how hard it will be for U.S. President Donald Trump to clinch a lasting peace deal. The president still struck an optimistic note Sunday, saying that “hopefully” the two sides would make a deal “this week” to end the conflict.

On Friday, Trump and his secretary of State, Marco Rubio, said the U.S. would walk away from peace efforts unless there are clear signs of progress soon.

 

TRUMP’S PEACE PUSH

Last month, after Ukraine accepted Trump’s proposal for a 30-day truce, Putin said crucial issues of verification had not been sorted out. Both Moscow and Kyiv agreed to a moratorium on attacks on energy targets and at sea, which each accuses the other of breaking.

Mr. Trump has pitched any end to the fighting as a precursor to both countries doing “BIG BUSINESS” with the United States, he said Sunday, saying that such deals would earn both nations “a fortune.”

Washington and Kyiv are currently negotiating a minerals deal that is expected to be finalized in the next week, Ukrainian officials have said, while American officials are looking at ways to ease sanctions on Russia’s energy sector if Moscow agrees to end the war, Reuters has previously reported.

Announcing the ceasefire before heading to an Orthodox Easter service, Mr. Putin said the truce would show whether or not Ukraine was ready or able to implement peace. Easter fell on the same day this year for Orthodox and Western churches

Ukraine’s military said that despite the ceasefire violations, activity on the front line had decreased. Some Russian military bloggers also said frontline activity had declined substantially.

But there was little such optimism from Ukrainian soldiers who spoke to Reuters on Sunday.

“There is no indication of a ceasefire,” said Dmytro, 24, from 93rd Kholodnyi Yar separate mechanized brigade.

Serhii, 22, a soldier from the same brigade, said the ceasefire “was announced only to show to the world as if they are making some steps, concessions for us. But in reality, as we can see at the front line, nothing has changed. I think it is blatant lie as it always was.” – Reuters

Russia’s economy ministry cuts 2025 Brent price forecast by nearly 17%, Interfax reports

UNSPLASH

Russia’s economy ministry has cut its forecast for the average price of Brent crude in 2025 by nearly 17% from what it saw the price would be this year in its September calculations, Interfax news agency reported early on Monday.

The ministry envisages in its baseline scenario of economic forecasts for 2025 that the average price for Brent will be at $68 per barrel, down from the $81.7 per barrel it assumed in its September forecasts, Interfax reported.

The ministry sees the price for Urals, Russia’s main blend, at $56 per barrel – against the $69.7 per barrel Russia has based its 2025 budget on.

“We believe that this is a fairly conservative estimate,” the agency cited a representative of the ministry as saying.

The price of Urals crude oil is crucial for the country’s budget as oil and gas revenues make up a third of all budget revenues.

The Russian central bank warned earlier in April that oil prices could be lower than forecast for several years as a result of lower global demand.

Urals prices fell to their lowest levels since 2023 in early April to trade at around $53 per barrel and traded below $60 last week.

The ministry also said it does not see big recession risks because of U.S. President Donald Trump’s trade wars and sees global economic growth this year at slightly more than 2%.

“The world is still wider than the United States, so some flows will be redirected,” Interfax cited the ministry’s representative as saying.

The ministry kept its gross domestic product growth forecast for Russia at 2.5% and increased its inflation forecast to 7.6% from 4.5% earlier.

It also said it sees the rouble slightly stronger than what it had assumed earlier, at an average of 94.3 roubles per dollar this year, against an earlier forecast of 96.5 roubles. – Reuters

France-Philippines Business Forum: Strengthening partnerships, creating opportunities

The French Chamber of Commerce and Industry in the Philippines, in collaboration with the Embassy of France to the Philippines, the French Foreign Trade Advisors, Philippines-France Business Council, Makati Business Club, and the Department of Trade and Industry, successfully hosted the France-Philippines Business Forum on Friday, April 11, 2025, at Fairmont Makati.

The event brought together a diverse group of business leaders to discuss key French-Philippines business developments and explore opportunities to strengthen trade and investment between the two nations. It served as a dynamic platform for fostering deeper economic collaboration and addressing critical issues in bilateral trade relations.

The program began with an opening address by Secretary Cristina Aldeguer-Roque from the Department of Trade and Industry and Minister Laurent Saint-Martin, Minister Delegate for Foreign Trade and French Nationals Abroad. Their speeches underscored the long-standing economic partnership between France and the Philippines, highlighting the importance of trade policies and investment incentives to further enhance business cooperation between the two nations.

Secretary Aldeguer-Roque reaffirmed the Marcos administration’s commitment to fostering a more investor-friendly climate, citing the CREATE MORE Law as a clear signal of the Philippines’ openness to invite more French business to explore opportunities in the country, echoing the call to “keep making it happen in the Philippines.”

Minister Saint-Martin, meanwhile, expressed France’s readiness to deepen economic ties by identifying key industries for collaboration and pushing for a formal trade agreement to unlock market potential. He emphasized the importance of a clear trade framework, the benefits of the EU’s preferential trade scheme, and the formation of a Joint Economic Committee as a step toward stronger bilateral cooperation.

Following the opening speeches, introductory remarks were delivered by Anton Huang, Chairman of the Philippines-France Business Council; and Jacques Christophe Branellec, President of the French Chamber of Commerce and Industry in the Philippines. Both emphasized that partnerships remain the cornerstone of successful and sustainable economic collaboration.

Assessing French Business Success in the Philippines

The first panel, “French Business Development in the Philippines — Key for Success,” opened with a discussion on the critical elements driving the success of French enterprises in the country. In the session titled “Key for Success 1: A Strong Partnership for Multiple Opportunities,” speakers Robert Baffrey of Makati Development Cooperation and Joris Thomas of Bouygues Bâtiment International were joined by Francis Gotianun of Filinvest Development Corp. and Jean Baptiste Dreanic of ENGIE. They discussed the value of long-term collaboration and mutual trust in unlocking business potential across sectors such as infrastructure and energy.

In “Key for Success 2: Take Advantage of Philippines Ecosystem and Competitive Advantages,” Oliver Tacorda of STMicroelectronic, Pamela Villangca of Air France, and Fides Ricasa shared insights on the strategies that have supported their companies’ sustainability and growth in the Philippine market. Ms. Villangca emphasized the significance of connectivity in driving business opportunities, noting that AirFrance is currently the only airline offering direct flights between the Philippines and Europe. This direct link not only facilitates tourism but also strengthens trade and investment between the two regions — asserting that “making countries more accessible makes investments more possible.” Mr. Tacorda and Ms. Ricasa, meanwhile, highlighted the value of long-term partnerships and innovation as key pillars in ensuring continued resilience and competitiveness in an evolving global landscape.

Unlocking Trade and Investment Potential

The second panel addressed the opportunities and challenges in increasing trade and investments between France and the Philippines. Discussions revolved around policy reforms, investment incentives, and private sector expectations to facilitate a more robust trade relationship.

Undersecretary Allan Gepty, Chief Negotiator of the FTA with the EU, elaborated on the PH-EU FTA’s key goals: promoting economic sustainability, and ensuring shared prosperity. Moreover, providing the perspective of the French and Filipino private sector, Christophe Lejeune of Makati Business Club and Jos Ortega of the French Chamber of Commerce and Industry in the Philippines, shared insights on leveraging the Philippine’s economic policies in fostering business-friendly regulations, and enhancing bilateral cooperation to maximize trade and investment opportunities.

Meanwhile, Undersecretary Ceferino Rodolfo, Vice-Chairman and Managing Head of Board of Investments of the Department of Trade and Industry Philippines, highlighted the Philippines’ strong economic performance — posing a 5.6% of GDP growth last year, the 2nd fastest in Southeast Asia and 8th globally. He elaborated on key areas for collaboration between France and the Philippines, underscoring opportunities for French investors through reforms like the CREATE law. He also emphasized the role of the PH-FR Joint Economic Committee (JEC) and ongoing PH-EU Free Trade Agreement talks in advancing strategic mutually beneficial partnerships.

The forum concluded with the closing remarks by Rafael Ongpin, Executive Director of the Makati Business Club; and Jacques Christophe Branellec, President of the French Chamber of Commerce and Industry in the Philippines. They reiterated the forum’s success in fostering meaningful dialogue, expanding business networks, and laying the groundwork for deeper cross-sector collaboration between France and the Philippines.

The French Chamber of Commerce and Industry in the Philippines extends its heartfelt gratitude to its Gold Sponsors: Ocea, Centre Médicale Internationale, Fairmont Makati & Raffles Makati, ReelReve, Havas Ortega Group Philippines, & Jewelmer; and Silver Sponsors: TotalEnergies, Inc., ENGIE, International Container Terminal Services, Inc., CMA CGM. CloudCFO, R Concepts & Events Co, & Teleperformance Philippines; and Media Partners: The Manila Times, BusinessMirror, BusinessWorld, The Philippine Star, INQUIRER.net, MANILA BULLETIN, Daily Tribune, & PTV-4, whose support made this event possible.

CCI France Philippines and its event partners are honored to have hosted an insightful gathering of business leaders and industry experts. Beyond exchanging ideas and success stories, the forum fostered meaningful connections and a shared vision for stronger economic ties between France and the Philippines.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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GDP likely grew by 6% in Q1 — Recto

Customers browse flowers at Dangwa Flower Market in Manila, Feb. 10, 2025. — PHILIPPINE STAR/RYAN BALDEMOR

By Aubrey Rose A. Inosante, Reporter

THE PHILIPPINE ECONOMY may have expanded by 6% in the first quarter, Finance Secretary Ralph G. Recto said.

Asked for his first-quarter gross domestic product (GDP) forecast, Mr. Recto told BusinessWorld that he expected 6% growth.

If realized, a 6% GDP growth in the January-to-March period would be slightly faster than the revised 5.9% expansion in the first quarter of 2024.

It would also hit the lower end of the Philippine government’s 6-8% growth target band for this year.

The Philippine Statistics Authority will release first-quarter GDP data on May 8.

Asked if his previous 6-6.5% GDP growth projection for 2025 is still doable amid the US tariffs, Mr. Recto replied: “Yes.”

Last week, National Economic and Development Authority Secretary Arsenio M. Balisacan said he is hopeful the economy grew by at least 6% in the first quarter, as rate cuts and cooling inflation drove domestic consumption.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort, said in an e-mail that first-quarter GDP likely expanded by 6.3%.

He said he expected household spending to have grown by 5% in the first three months of 2025 versus 4.7% last year, supported by “benign” inflation.

In the first quarter, inflation averaged 2.2%, well within the central bank’s 2-4% target range.

Mr. Ricafort said consumption may have been driven by “among the strongest employment data in nearly 20 years, continued growth in overseas Filipino workers’ remittances, business process outsourcing revenues, [and] tourism receipts.”

However, some analysts expect growth in the January-to-March period to settle below 6%.

Moody’s Analytics economist Sarah Tan said the economy may have expanded by 5.5% in the first quarter.

“Private consumption should lift 5.2% year on year, supported by lower borrowing costs as the effect of monetary policy easing filters through the economy. That will ease the pressure on household budgets,” Ms. Tan said in an e-mailed statement on April 11.

The Bangko Sentral ng Pilipinas paused its easing cycle in February but cut rates by 25 basis points at the April 10 meeting. This brought the target reverse repurchase rate to 5.5% from 5.75% previously.

Ser Percival K. Peña-Reyes, director of the Ateneo Center for Economic Research and Development, said in a Viber message that “construction, transport and storage, and accommodation and food service activities” likely drove GDP expansion to 5.4% in the first quarter.

He said household consumption may have grown by 4.6% in the January-to-March period.

Asked for the reason of a relatively slower GDP projection, Mr. Peña-Reyes said that elections no longer provide a significant boost to Philippine growth.

Mr. Balisacan earlier said that election spending would likely be “muted” compared with previous elections as more candidates are allocating more of their campaign funds on social media ads.

TARIFF THREAT
Meanwhile, the outlook for the second quarter may be clouded by the turmoil caused by US President Donald J. Trump’s tariff policies.

Mr. Trump on April 9 paused the new reciprocal tariffs for 90 days, although the baseline 10% tariff on almost all US imports remained in effect. The Philippines faced a 17% reciprocal tariff, which was the second lowest among Southeast Asian countries.

“The immediate risk to the outlook for the rest of 2025 will be slowing export growth due to the hike in US tariffs. These make the Philippines’ goods to the US more costly and less competitive, which is concerning because the US is the Philippines’ largest export destination,” Ms. Tan said.

She also noted that escalating tensions between the US and its trading partners could dampen external demand for the country’s goods, potentially slowing production.

“We expect the Philippines to expand 5.8% this year, but this could be revised lower should the heightened US-China trade war cause significant disruptions to the global economy,” Ms. Tan said.

The Philippines exported $12.14 billion worth of goods to the US in 2024.

Mr. Ricafort said the easing inflation trend would justify further rate cuts “that would fundamentally lead to faster GDP than otherwise.”

“However, offsetting risk factors include US President Trump’s higher US import tariffs, reciprocal tariffs, and other protectionist policies that could slightly reduce GDP growth starting the second quarter 2025,” Mr. Ricafort said.

Despite the tariff threats, he said second-quarter growth could still reach 6%, driven by election spending.

Ms. Tan anticipates an increase in government spending ahead of the midterm elections on May 12.

Mr. Peña-Reyes said he sees the economy expanding by 5.9% in the second quarter, as well as the full year.

Mr. Balisacan has said it may be too early to revise the full-year growth targets in the Development Budget Coordination Committee’s meeting in May.

However, he said the upper end of the 6-8% target may be unrealistic to hit amid global uncertainty over the US tariff policy.

PHL banks eager to back offshore wind projects

A view shows wind turbines at the Saint-Brieuc offshore wind farm operated by Iberdrola near Saint-Quay-Portrieux, Brittany, France, Oct. 22, 2024. A World Bank report estimates the Philippines’ offshore wind resources has a potential of over 178 gigawatts (GW). — REUTERS

By Sheldeen Joy Talavera, Reporter

DESPITE the nascent stage of offshore wind projects in the Philippines, local banks are stepping up to finance these ventures that are aiming to deliver the first kilowatt-hour by 2028.

“We are keen on supporting offshore wind projects as there appears to be a good business case for their adoption in the Philippines. Our sense is that probably all the major local banks are seriously looking at financing this type of renewable energy technology,” Juan Paolo E. Colet, managing director of China Bank Capital Corp., told BusinessWorld.

He said that there is a sufficient appetite and ample domestic liquidity for financing renewable projects.

While interest rates remain relatively high in the Philippines, Mr. Colet said that government initiatives have made the energy market attractive for offshore wind developers. These include the Green Energy Auction Program (GEAP), the Green Lane for Strategic Investments, and the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act.

“Foreign investors never fail to mention to us that the Philippines is a promising destination for offshore wind energy investments,” he said.

Other major banks such as the Bank of the Philippine Islands (BPI) also expressed support in financing offshore wind projects.

“BPI is keen to support offshore wind projects by providing the required financing. Although relatively new to the Philippines, there are numerous successful applications globally, so the technology is not untested, and therefore there should be good appetite for such projects,” said Eric Roberto M. Luchangco, chief sustainability officer and chief finance officer of BPI.

“Appetite will be important given the large scale of projects.”

Meanwhile, John Cary L. Ong, executive vice-president and wholesale banking segment head of Security Bank Corp., said that the company is “cautiously optimistic” about financing offshore wind projects.

“We recognize the long-term potential of offshore wind as a critical component in the clean energy transition. However, we also acknowledge the high early-stage risks,” he said.

Mr. Ong said that the company focuses on supporting “well-capitalized developers” as well as ensuring “robust project fundamentals” and utilizing de-risked structures to mitigate potential challenges.

Offshore wind farms generate electricity from turbines positioned in bodies of water, usually at sea.

According to the World Bank’s 2022 Offshore Wind Roadmap for the Philippines, the country’s offshore wind resources have a potential of generating over 178 gigawatts (GW).

The Philippines is now tapping into this potential as the Department of Energy (DoE) assists 16 offshore wind proponents that are estimated to deliver a total of more than 16 GW of capacity.

BDO Capital and Investment Corp. President Eduardo V. Francisco said that the company is currently assisting Danish renewable energy investor Copenhagen Infrastructure Partners (CIP).

CIP, through its affiliate Copenhagen Infrastructure New Market Fund Philippines Corp., is developing a 1,000-megawatt (MW) San Miguel Bay Offshore Wind Power Project located in the provinces of Camarines Norte and Camarines Sur.

The company is the first 100% foreign-owned company to be awarded a wind energy service contract by the DoE in 2023, granting it the exclusive right to explore and develop an area in San Miguel Bay for an offshore wind project.

“I think BDO has a responsibility to understand it (offshore wind) because being one of the larger banks, so we have to be at the forefront. So, we’re trying to understand it and then we’re trying to invite other smaller banks to participate also to get a better understanding of it [so] we can help the other projects,” Mr. Francisco said via phone call.

To date, a total of 92 offshore wind service contracts have been awarded with a potential capacity of around 69 GW.

The DoE is planning to launch the fifth round of green energy auction (GEA-5) by the third quarter, which will focus on offshore wind power projects.

GEA-5 is expected to facilitate market access for offshore wind developers, ensuring long-term demand for their generation capacities and keep them on track for power generation by 2028.

The DoE sees offshore wind to play a transformative role in the Philippines’ target of increasing the renewable energy share in the power mix to 35% by 2030 and 50% by 2040.

Energy Undersecretary Giovanni Carlo J. Bacordo earlier told BusinessWorld that the DoE is working with the World Bank Group for expert guidance and support in the upcoming auction.

“This collaborative approach ensures a well-structured and investor-friendly auction,” he said.

While local banks are seeing support from the government by working on the mechanisms and infrastructure needed, further mobilization is needed to assist developers.

Chinabank’s Mr. Colet said the government has been “very helpful.”

“To further boost offshore wind development, the government needs to mobilize investment in essential infrastructure, such as ports and roads; effectively assist in permitting issues; and expedite value-added tax refunds for renewable energy developers,” he said.

BDO’s Mr. Francisco said that GEAP is important for proponents as it secures winning bidders of off-take contracts for their projects.

He said, however, that local government units could help make the permitting process easier, as well as assist in resolving right-of-way and land leasing issues.

“Government support would be necessary in the form of longer-term contracts to allow project certainty over a longer period, ports to accommodate the massive parts (which they are working on) and perhaps relief to sponsors for grid issues not under their control,” BPI’s Mr. Luchangco said.

Security Bank’s Mr. Ong said that to make offshore wind investments more attractive, the government should take steps to de-risk the market, ensure regulatory stability, and streamline the development process.

“Implementing a comprehensive Grid Integration Plan, offering substantial financial and fiscal incentives, and committing to stable and long-term policies will signal confidence to investors and encourage substantial investment in this promising sector,” he said.

External debt service burden slumps in Jan.

PIXABAY

By Luisa Maria Jacinta C. Jocson, Senior Reporter

THE PHILIPPINES’ external debt service burden slumped by more than 50% in January amid a sharp decline in principal payments, the latest data from the Bangko Sentral ng Pilipinas (BSP) showed.

Preliminary data from the central bank showed debt servicing on external borrowings declined by 54.3% to $799 million in January from $1.75 billion in the same month in 2024.

Broken down, amortization payments plunged by 92.5% to $79 million from $1.06 billion in the year-ago period.

On the other hand, interest payments inched up by 3.8% to $719 million in January from $693 million a year ago.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the drop in debt servicing could be largely attributed to the lower amount of foreign debt maturity or principal payments at the start of the year versus a year ago.

“This amid efforts in recent years to reduce the share of external borrowings in the total borrowing mix to reduce foreign exchange risks entailed in foreign debt,” he added.

From this year until 2027, the National Government (NG) plans to source at least 80% of its borrowing program from domestic sources, and 20% from foreign lenders. The government previously adopted a 75:25 borrowing mix

“This is also partly consistent with the budget surplus at the start of the year, after the seasonal increase in the budget deficit and debt payments towards yearend, a consistent pattern seen in recent years, thereby slowing down upon crossing the New Year,” Mr. Ricafort added.

Data from the Treasury showed the NG posted a P68.4-billion budget surplus in January, though 22.27% lower than the P88-billion surplus a year ago.

The debt service burden represents principal and interest payments after rescheduling, according to the BSP.

This includes principal and interest payments on fixed medium- and long-term credits including International Monetary Fund credits, loans covered by the Paris Club and commercial banks’ rescheduling, and New Money Facilities.

It also covers interest payments on fixed and revolving short-term liabilities of banks and nonbanks.

However, the debt service burden data exclude prepayments on future years’ maturities of foreign loans and principal payments on fixed and revolving short-term liabilities of banks and nonbanks.

The latest data from the central bank showed the Philippines’ outstanding external debt rose by 9.8% to $137.63 billion as of end-December 2024 from $125.39 billion in the same period in 2023.

This brought the external debt-to-gross domestic product (GDP) ratio to 29.8% at the end of 2024 from 28.7% at end-2023.

At end-2024, the external debt service burden as a share of GDP stood at 3.7%, up from 3.4% at the end of 2023.

The BSP’s external debt data cover borrowings of Philippine residents from nonresident creditors, regardless of sector, maturity, creditor type, debt instruments or currency denomination.   

PHL unlikely to benefit from shifting trade routes amid tariff war

A US FLAG and a “tariffs” label are seen in this illustration taken on April 10, 2025. — REUTERS/DADO RUVIC/ILLUSTRATION

SHIFTING TRADE ROUTES amid tit-for-tat tariffs would likely occur within Southeast Asia, Oxford Economics said, though this may not necessarily benefit the Philippines due to its poor logistics sector.

“The Philippines and Malaysia might also be able to capture some of the diverted trade flows looking to avoid ports with higher tariffs. They have the next two lowest tariff rates in the region, which are also below the global average of 27%,” it said at a research briefing.

“That said, the Philippines will probably not gain much from re-routing given its less developed trade logistics sector.”

In early April, US President Donald J. Trump announced higher reciprocal tariffs on most of its trading partners.

Southeast Asia was hit with some of the highest duties, though the Philippines was slapped with a 17% tariff, the second lowest in the region, just after Singapore.

However, Mr. Trump suspended the reciprocal tariffs for 90 days starting April 9 but implemented the 10% baseline tariff for all. The suspension would be lifted in July.

Oxford Economics said that the Association of Southeast Asian Nations (ASEAN) will likely undergo a “reordering of shipping routes” within the region.

“The ‘Liberation Day’ tariffs announced by US President Trump have been postponed. But they will have significant consequences for ASEAN if they are eventually implemented.”

“Given the extreme uncertainty, high fixed-asset investment costs, and the region’s strong labor cost advantages, we doubt ASEAN supply chains can adjust quickly,” it added.

Some businesses could opt to soften the impact of the higher tariffs by shifting production to locations slapped with lower tariffs.

“But not all businesses have diversified production bases and relocation costs are enormous. Also damaging is the hit from extreme trade policy uncertainty, which will lower business investment even if tariff hikes are eventually reduced or scrapped.”

“Lower-tariffed economies with transshipment capabilities could benefit. That said, a key risk is the potential for disruption to supply chains. A supply glut may arise as orders are canceled, while transportation capacity could also be strained.”

In the region, countries with the higher tariffs include Cambodia, Laos, Myanmar and Vietnam. Meanwhile, those that are “moderately exposed” to the US are Malaysia and Thailand.

“The relatively larger size of domestic spending in the Philippines buffers its economy against external volatility from an almost 20% export exposure to the US,” it added.

In 2024, the US was the top destination for Philippine exports, accounting for 17% of the total.

“Tariff rate differential considerations are key to production decisions. Companies with facilities in different economies could tap existing and available capacity in lower-tariff economies to fulfill production orders.”

However, the global economic advisory firm noted that not all companies have diversified production bases.

“Relocating or setting up new facilities typically involves significant fixed investment, even to lower-tariffed economies. The time needed to set up in new locations could stretch over several years, especially in sectors that require more complex facilities.”

Oxford Economics said the region’s “comparative advantage in the production of these goods should persist even with higher tariff rates.”

“This is particularly the case for lower value-added, labor-intensive manufacturing processes, such as the assembly of electricals or cut-and-trim processes for textiles, which some ASEAN economies dominate.”

“Given the labor-intensive nature of these processes, the large wage differential between the US and ASEAN economies is a core driver of the region’s competitive edge.”

In the medium term, Oxford Economics said it is unlikely that companies in ASEAN will reshore to the United States.

“Labor costs in the US are prohibitively high for the labor-intensive processes dominant in ASEAN. The region also benefits from economies of scales as an existing production hub.”

To cushion the impact of tariff hikes, ASEAN economies could consider lowering trade barriers on US goods.

“However, given the already low effective tariff on US goods relative to those imposed by the US, it’s unclear by how much these reciprocal tariffs will be lowered.”

ASEAN countries can also seek to ramp up US imports, it said.

“This was a method employed by China when Trump raised tariffs during his first term. However, it’s unlikely ASEAN will manage to do so in a manner that significantly reduces the US trade deficit.”

“The ASEAN consumer market is far smaller than that of the US given the sheer difference in income. This is also why we think the removal of what the US administration considers to be non-trade barriers isn’t likely to change much.”

Economies in the region can also invest more in the United States, it added.

“This approach is taken by Northeast Asian economies like South Korea. and Japan. But it’s probably not viable for ASEAN since most producers are foreign owned.” — Luisa Maria Jacinta C. Jocson

UP physicist among winners of prestigious Breakthrough Prize in Fundamental Physics

University of the Philippines Diliman-College of Science National Institute of Physics Assistant Professor Dr. Marvin Flores at the Large Hadron Collider Detector

Dr. Marvin Flores, assistant professor at the University of the Philippines Diliman-College of Science National Institute of Physics (UPD-CS NIP), has been recognized as part of the international ATLAS collaboration, one of the recipients of the prestigious 2025 Breakthrough Prize in Fundamental Physics.

The award was given to the ATLAS group at CERN’s Large Hadron Collider, alongside its sister experiments — ALICE, CMS, and LHCb — in honor of their pioneering contributions to particle physics and the continued exploration of the fundamental forces of nature.

ATLAS is one of the largest and most complex scientific instruments ever built. As a general-purpose particle detector measuring over 40 meters in length and around 25 meters in height, it was designed to investigate the fundamental building blocks of matter and the forces governing our universe. Its cutting-edge systems track particles produced in particle collisions at unprecedented energies, enabling discoveries like the Higgs boson and searches for new physics beyond the Standard Model.

The Breakthrough Prize specifically highlights the ATLAS Collaboration’s significant contributions to particle physics, including detailed measurements of Higgs boson properties, studies of rare processes and matter-antimatter asymmetry, and the exploration of nature under the most extreme conditions.

“The Breakthrough Prize is a testament to the dedication and ingenuity of the ATLAS Collaboration and our colleagues across the LHC experiments,” ATLAS Spokesperson Stephane Willocq said. “This prize recognizes the collective vision and monumental effort of thousands of ATLAS collaborators worldwide.”

UPD-CS NIP has been at the forefront of ATLAS research since 2021, contributing to the search for new Physics beyond the Standard Model (BSM).

“Our team’s work on BSM modeling and simulation exemplifies the innovation driving ATLAS forward,” Dr. Flores said. “This recognition affirms the impact of our contributions and inspires us to continue exploring the universe’s most fundamental questions.”

The third operation period of the LHC is currently under way and preparations for the High-Luminosity LHC upgrade are advancing rapidly. NIP’s High Energy Physics & Phenomenology (HEP-PH) team of 15 physicists and students is deeply involved in preparing ATLAS for its next chapter. Although their current contributions are currently in the theoretical and phenomenological side, the team is ramping up their experimental involvement through concrete steps like the formation of the ATLAS Philippine Cluster involving other Philippine universities.

 

SparkUp is BusinessWorld’s multimedia brand created to inform, inspire, and empower the Philippine startups; micro, small and medium enterprises (MSMEs); and future business leaders. This section will be published every other Monday. For pitches and releases about startups, e-mail to bmbeltran@bworldonline.com (cc: abconoza@bworldonline.com). Materials sent become BW property.

Filipina tech leaders represent PHL at 2025 Mobile World Congress

Breaking barriers to financial inclusion. Martha Sazon, GCash President & CEO (second from left), discussed delivering financial services to the underserved communities at the MWC CEO Panel in Barcelona alongside (L-R) Brian Gorman (GSMA), Melike Kara Tanrikulu (e& Money), and Erwan Gelebart (Axian Group).

Filipina tech leaders share perspectives on financial inclusion and how tech can be used to empower unserved and underserved communities in the Philippines

Two Filipina tech leaders from Mynt, the holding company of GCash, the #1 finance super app in the Philippines—Martha Sazon, President & CEO, and Pebbles Sy, Chief Technology and Operations Officer—represented the country’s transformative adoption of connectivity, mobile tech, and the digital economy during the prestigious Mobile World Congress (MWC) in Barcelona, Spain.

Sazon and Sy once again brought GCash’s mission of “Finance For All” to a global audience, who highlighted how fintech innovations can be used for social good—from increasing access to essential financial services within historically underserved communities to leveraging cutting-edge fintech developments to drive meaningful change and economic empowerment.

Transforming mobile moments into financial freedom. At MWC CEO Panel, GCash President & CEO Martha Sazon showcased how the Philippines’ #1 finance super app evolved from basic transfers to a comprehensive ecosystem.

Redefining the super app

Martha Sazon was part of the MWC CEO Panel, “Fintech and Mobile Commerce Summit: Powering Mobile First Commerce,” which explored how companies like GCash can enhance the leapfrog effect of tech and artificial intelligence to address barriers to financial inclusion.

Sazon discussed how GCash first set out to meet an increased demand for seamless, mobile-first solutions among Filipinos as a money transfer app—but then went on to elevate its services by establishing a diverse and wide-ranging financial ecosystem that actively caters to unbanked and traditionally underserved sectors.

“Our money transfer services were the gateway to a broader digital economy. Across the years, and in response to our users’ needs, GCash has broadened its functionalities into a comprehensive selection of financial services, including savings, investments, insurance, and banking,” explained Sazon. “Our work has empowered individuals to take control of their financial well-being and pursue economic opportunities previously out of reach, all from the convenience of their mobile phones.”

Sazon stressed that the key to the digital financial ecosystem’s success is how it focused on addressing systemic issues and the limits of traditional financial institutions: GCash aimed to break down fundamental barriers to inclusion, which included lack of infrastructure, lack of avenues for boosting financial literacy, and the lack of progressive solutions that allow for widespread access to services.

Today, GCash has accelerated financial inclusion in the Philippines, helping raise the number of customers with access to a bank account from 29% to 65%, those with access to formal credit from 2% to 8%, and those with access to insurance from 23% to 51%, all in four years.

Democratizing finance through seamless connections. At the MWC Platform Economy panel, GCash Chief Technology and Operations Officer Pebbles Sy (center) joined global fintech leaders including Brian Gorman of GSMA (left) and Bolttech’s Melissa Wong (right) to showcase how digital integration drives financial inclusion.

The features of GCash range from payments and transfers that make online and offline commerce easier to lending solutions that utilize AI. A groundbreaking example of the latter is GCash’s in-house credit scoring model, GScore, which uses transactional behavior as a proxy for measuring a user’s creditworthiness and has ultimately changed the landscape of microlending.

GScore, in particular, has allowed GCash to disburse roughly $3.2 billion by 2024 to over seven million Filipinos, most of whom are women from underserved sectors. Its suite of solutions also includes tools for wealth management, with the company introducing bite-sized financial offerings to match the “sachet economy” of the Philippines.

“The conventional super app is defined as having multiple features in a single platform, but for us, a super app means being an everyday companion,” said Sazon. “It’s about constant innovation: We look at our daily use cases and find ways to make things better.”

Using fintech for empowerment

In addition to opening doors for the underbanked and underserved, GCash invests in innovations, such as APIs (application programming interfaces), which allowed it to connect and collaborate with service partners to deliver personalized solutions. These, in turn, have boosted the super app’s capabilities in catering to a multitude of diverse, and personalized needs of its users.

During the “Platform Economy” MWC panel, which focused on increasing access to financial services through everyday apps and fintech ecosystems, Pebbles Sy shared how GCash’s API integration has been a key factor in expanding reach and improving user experience.

She also noted how this approach has necessitated the continuous adoption and development of modular and reusable features that must work well with other app components: “Today, we’re connecting thousands of microservices on our platform through APIs. We also use APIs to connect with external partners like merchants and other service providers.”

According to Sy, when financial services are seamlessly integrated, they become second nature for its users. Thanks to APIs, GCash connects users with 1,200 billers and 17 insurers within the app, as well as with four partner banks for savings accounts and to a platform that enables Filipinos to invest with the Philippine Stock Exchange.

Sy added, “This is where embedded finance goes beyond just inclusion. It’s not just about providing access to financial services; it’s about making them work for people [as they] build better financial habits, protect what they earn, and plan for the future.”

The future is now for fintech

Meanwhile, during the MWC’s “The Currency of Change” session—which discussed how mobile money contributes to GDP growth and how financial innovations drive economic development—Sy emphasized the importance of aligning the future of fintech with strategies for ensuring the security and sustainability of innovations.

Citing Google’s e-Conomy Southeast Asia Report in collaboration with Temasek and Bain & Company, she shared that the Philippines emerged as the fastest-growing digital economy in the ASEAN region, where mobile money penetration more than quadrupled in the two years during the COVID-19 pandemic. These advancements highlight the profound economic impact of mobile money in the Philippines, which GCash is ready to safeguard and facilitate further.

She added, “At the end of the day, the goal is clear: We must make financial services accessible, safe, and empowering. We want to go beyond inclusion and see financial progress in Filipinos, which hopefully can [translate into] financial health and freedom.”

 

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