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Style (01/13/25)

Benetton MoA store reopens

UNITED COLORS OF BENETTON announced the reopening of its store at SM Mall of Asia (MOA). This refreshed space carries Benetton’s range of offerings, including the Fall/Winter 2024 collection, kids wear, home items, and fragrances. Benetton’s Fall/Winter 2024 collection includes cozy knitwear and bold outerwear, timeless denim, and sporty looks. Vibrant colors, playful patterns, and luxurious textures come into play in this collection. The SM Mall of Asia store offers more than just apparel. Casa Benetton features novelty home items. The store also carries a selection of fragrances. Alongside the reopened SM Mall of Asia branch, United Colors of Benetton has locations at Shangri-La Plaza, Okada Manila, and Rustan’s Makati for Kids.

Posh Skin Co. signs Niana Guerrero

POSH SKIN CO. Has signed on Gen Z singer, dancer, and influencer Niana Guerrero as its first brand ambassador. The partnership comes on the heels of Posh Skin Co.’s launch at Watsons last December. All four signature designs of the brand’s pimple patches are now available in 100 select Watsons stores, with plans to expand to all 800+ Watsons outlets nationwide by the end of 2025. Posh Skin launched its first fashionable pimple patches online in mid-November. After Ms. Guerrero discovered the patches and shared a dance on TikTok while wearing them, the brand reached out and connected with her. The pimple patches combine creative designs with blemish-taming ingredients, such as salicylic acid, hydrocolloid, tea tree oil, and aloe vera. Ms. Guerrero’s pimple patch collaboration with Posh Skin is slated to launch later this year. The pimple patches are now available for P199 on Shopee, Lazada, Tiktok Shop, and the official Posh Skin Co. website, and in select Watsons stores nationwide.

Marks & Spencer’s winter collection still going strong

IT’S STILL winter somewhere, and there are parties everywhere. The latest Occasion Collection from Marks & Spencer showcases new shapes designed to offer men and women quality outfits, head-turning style, and endless versatility. This season, the key colors for women include rich berry reds, shimmering metallic silver, and vibrant pops of yellow. In the Edit range, there are easy-to-wear pieces like statement sequin pencil skirts and draped dresses. These styles are made with luxurious fabrics such as satin, silk, and lace. For a laid-back approach, choose from embellished denim, knitwear with sequin embroidery, and cropped jackets. Outerwear this season includes blazers or jumpers crafted with merino wool-rich yarn and a touch of cashmere. Cardigans are detailed with soft textured tipped trims and gold buttons for a touch of luxury. Hardware, metallics, and embellishments take center stage in the accessories and footwear collection. Slingback shoes are designed with double buckle straps and an elasticized back strap for comfort (and antibacterial padding provides added freshness). For men there is a selection of luxurious coats and velvet jackets. There are also tailored fit separates such as joggers, fine roll necks, and sleek pleated front trousers. Cashmere T-shirts in bold stripes, color-blocked patterns, and statement solids complete the look for any occasion. Shop selected lines online on www.marksandspencer.com.ph.

Collaboration set between barenbliss and ELINAILS

THE KOREAN clean beauty brand barenbliss, merges makeup and nail design in a collaboration with nail artist Elina Jung (better known as ELINAILS). The partnership celebrates the possibilities of its newest additions to the Dream Chaser Quad Eyeshadow palette – Pink Romance and Moonlight Fantasy. For this collaboration, Ms. Jung uses the newest eyeshadow palettes from barenbliss as a medium for creating her intricate nail designs. Translating barenbliss’ pink, playful, and girly aesthetic into her edgier world of nail art was no small feat said Ms. Jung. “I’m not really the girly type, but that’s what made this collaboration so exciting — it pushed me to adapt and discover something new.” From glittering ombre looks to abstract 3D elements, the designs embody the newest Dream Chaser palettes. Pink Romance, with its soft, warm tones, offers a balance for romantic, glowing looks. Moonlight Fantasy, with its cool-toned hues, provides dreamy, ethereal vibes. The Dream Chaser Quad Eyeshadow palettes in Pink Romance and Moonlight Fantasy are now available at the barenbliss TikTok Shop, Shopee, Lazada, and Watsons stores nationwide.

CTA partially grants MSD’s petition for VAT refund

CTA.JUDICIARY.GOV.PH

THE COURT of Tax Appeals (CTA) has ordered the Bureau of Internal Revenue (BIR) to refund P14.59 million to the local branch of United States-based pharmaceutical company Merck Sharp & Dohme (MSD), ruling that value-added tax (VAT) on certain medicine imports was improperly collected.

The court’s second division, in a decision promulgated on Jan. 6, partially granted the firm’s petition for review, acknowledging the company’s claim that the imported medicines were exempt from VAT beginning Jan. 1, 2020.

The tribunal only partially granted the petition for a refund of erroneously paid VAT, as the BIR had already refunded a portion of the claimed amount.

It held that the National Internal Revenue Code (NIRC) of 1997, as amended by Republic Act (RA) No. 11467, which exempts the importation of prescription drugs and medicines for diabetes, high cholesterol, and hypertension from VAT starting Jan. 1, 2020, takes precedence over subsequent administrative issuances that prescribed later effectivity dates.

The court said the VAT exemption should be applied retroactively to Jan. 1, 2020, despite conflicting interpretations in the BIR’s issuances. It added that the law prevails over administrative regulations.

“Considering that RA No. 11467 is clear that the subject VAT exemption shall begin on January 1, 2020, the payments of VAT by petitioner on the subject importations for the period from January 7 to April 1, 2020, are therefore deemed illegal and erroneous,” the 19-page ruling penned by Justice Corazon G. Ferrer-Flores read.

The case stemmed from when Merck Sharp & Dohme, a foreign corporation with a branch in the Philippines, filed administrative claims for a VAT refund totaling P33,730,490.83 for medicines imported between Jan. 1, 2020, and April 30, 2020.

The firm said that the importation of medicines subject to the refund claims was exempt from VAT starting Jan. 1, 2020. It claimed that the erroneously paid VAT subject to the refund claims had not been claimed and utilized as input tax credits.

It said that it was entitled to the refund of P14,589,661.00, representing VAT erroneously paid on the importation from Jan. 6, 2020, to Jan. 26, 2020, of medicines intended for the treatment of persons with diabetes, high cholesterol, and hypertension.

The BIR initially denied the refund for the period of Jan. 1 to Jan. 22, 2020, saying that the VAT exemption for these medicines was not yet in effect.

It later granted a partial refund of P19,140,829.83 but disallowed P8,299,507.00 due to a discrepancy in the effectivity date of the VAT exemption, leaving P14,589,661 from the firm’s original request.

The respondent said that refunds were in the nature of tax exemptions, and thus, strictly construed against the taxpayer.

It said that in case of doubt as to the entitlement to the refund, the refund must be denied. Finally, even assuming, arguendo, that RA No. 11467 can be applied retroactively, the petitioner is still not entitled to the refund sought.

Merck Sharp & Dohme then filed a petition for review with the CTA on Jan. 5, 2022. — Chloe Mari A. Hufana

Isuzu Philippines opens new IOS dealerships in Rizal and Taytay

Isuzu Rizal boasts a spacious four-vehicle showroom that accommodates trucks.

ISUZU PHILIPPINES CORP. (IPC), in partnership with AC Motors Automobile Group (AC Motors), recently opened two new Isuzu Outlet Standard (IOS) dealerships in Rizal and Taytay. The inauguration was led by IPC President Tetsuya Fujita and AC Motors President Antonio “Toti” Zara III, “marking another milestone in Isuzu’s commitment to bringing high-quality products and services closer to its customers,” said IPC in a release.

“Rizal is a vibrant and growing province that serves as a gateway between Metro Manila and the surrounding regions. Its booming industries, such as manufacturing, construction, and logistics, require reliable transportation solutions, (and) establishing our latest IOS dealerships here allows us to better serve the businesses and communities of Rizal with our high-quality products and services, especially our dependable trucks and D-Max pickups that perfectly suit their needs,” underscored Mr. Fujita.

Isuzu Rizal rises on a 2,000-sq.m. lot along Marcos Highway, with a spacious showroom that can display up to four vehicles, including trucks. The dealership also features a large service area with eight service bays, including one dedicated to trucks, catering to the needs of local businesses and individual customers.

Isuzu Taytay, on the other hand, boasts a larger 3,135-sq.m. facility located at Manila East Road. Up to six vehicles, including light commercial vehicles and trucks, can fit in the showroom — providing customers with “a comprehensive overview” of Isuzu’s product range. A well-lit and modern service area gets six dedicated service bays for both light commercial vehicles and trucks.

“Our goal has always been to deliver the best customer service possible, and these new IOS facilities reflect our strong commitment to provide exceptional customer care in all our areas of operation nationwide, ensuring that every Isuzu customer experiences unparalleled support and satisfaction,” maintained Mr. Zara.

The launch of these IOS dealerships is part of IPC’s ongoing efforts to modernize its dealer network to meet the evolving demands of its customers. “With Rizal’s rapidly growing economy, the addition of these modern facilities ensures that Isuzu remains at the forefront of providing reliable transportation solutions to businesses and individuals in the region,” said the company.

Mr. Fujita added, “These facilities stand as a testament to Isuzu’s promise of quality and reliability. Our new IOS design guarantees more efficient sales and after-sales transactions, supported by our robust and durable vehicles that are trusted worldwide. Whether it’s for business or personal needs, Isuzu is here to support you with products that deliver excellence in performance and service.”

For more information about IPC’s nationwide dealership network, visit www.isuzuphil.com or follow Isuzu Philippines on Facebook for the latest updates and announcements.

PCA to partner with Monde Nissin to support Filipino coconut farmers

MICHAEL LOUIE-UNSPLASH

THE Philippine Coconut Authority (PCA) said it is looking to partner with food and beverage manufacturer Monde Nissin Corp. to support local coconut farmers.

In a statement, the agency said its banner campaign seeks to bolster the coconut industry through multi-stakeholder participation, encouraging synergy across the public and private sectors.

“The role of private partners like Monde Nissin is crucial in realizing transformative goals, such as increased production, innovation and sustainable practices,” it added.

PCA Administrator Dexter R. Buted said the initiative also involves other implementing agencies of the Coconut Farmers and Industry Development Plan (CFIDP) to broaden the scope and impact of the program.

These are the Department of Agriculture and Department of Trade and Industry, Technical Education and Skills Development Authority, Commission on Higher Education and Cooperative Development Authority.

It added that Monde Nissin is looking for local partners to support the production of its new coconut-based product. “This is the start of our partnership,” Mr. Buted said.

The PCA said they seek to boost coconut supply in the next five years through their replanting program.

Last year, the PCA launched its coconut rehabilitation program, which involves planting 100 million coconut trees to replace aging ones.

This year, the agency aims to plant 15.3 million trees and 25.4 million trees yearly from 2026 to 2028.

The replanting project is expected to increase coconut output by 4.7 billion nuts annually, valued at P33.1 billion, by 2034.

Mr. Buted has also pushed the use of coconut by-products such as coconut oil, coco sugar and coco flour in Monde Nissin’s products.

“Both parties committed to a follow-up meeting involving Monde Nissin’s Research and Development and procurement teams to deepen the collaboration,” the PCA said. — Adrian H. Halili

Yields on gov’t debt end lower after inflation data

YIELDS on government securities (GS) traded on the secondary market mostly declined last week as the latest Philippine inflation data fueled mixed bets on the Bangko Sentral ng Pilipinas’ (BSP) next policy action.

GS yields, which move opposite to prices, went down by an average of 3.32 basis points (bps) last week, based on data from PHP Bloomberg Valuation Service Reference Rates as of Jan. 10 published on the Philippine Dealing System’s website.

At the short end of the curve, the rates of the 91-, 182-, and 364-day Treasury bills (T-bills) went down by 7.75 bps (to 5.7511%), 15.31 bps (5.8199%), and 19.29 bps (5.8562%), respectively.

Meanwhile, at the belly, yields on the two-, three-, four-, five-, and seven-year Treasury bonds (T-bonds) decreased by 10.37 bps (5.9620%), 7.07 bps (6.0048%), 5.53 bps (6.0372%), 4.82 bps (6.0634%), 3.25 bps (6.1093%), respectively.

At the long end of the curve, the rate of the 10-year debt paper declined by 0.82 bp to 6.1485%, while the 20- and 25-year T-bonds saw their yields increase by 19 bps (6.2882%) and 18.71 bps (6.2855%), respectively.

GS volume traded reached P34.56 billion on Friday, higher than the P31.34 billion recorded a week prior.

“Local bond yields declined amid lingering expectations of a possible BSP policy rate cut in February,” the first bond trader said in an e-mail.

However, the decline was limited for tenors at the belly amid concerns following the release of the latest consumer price index (CPI) report, the trader said.

“Despite the higher-than-expected December Philippine CPI report, bond yields generally moved lower due to strong demand for fixed-income securities from investors,” the first trader said.

A second bond trader said in a Viber message that GS yields were mostly flat as the BSP is expected to maintain its cautious stance following the inflation report, although there was pressure at the long end of the curve due to lingering uncertainties here and abroad.

Philippine headline inflation picked up to 2.9% in December from 2.5% in November, the government reported last week. This was higher than the 2.7% median estimate in a BusinessWorld poll of 13 analysts.

Still, this was slower than the 3.9% print in the same month a year prior and was within the 2.3%-3.1% forecast of the BSP.

The December rate brought the full-year 2024 inflation average to 3.2%, slower than 6% in 2023 and marking the first time since 2021 that the consumer price index settled within the BSP’s 2-4% annual target.

The Monetary Board has slashed benchmark borrowing costs by a total of 75 bps since it began its easing cycle in August, bringing its policy rate to 5.75%.

BSP Governor Eli M. Remolona, Jr. last week said the Philippine central bank still has room to continue cutting interest rates as inflation is well within its annual goal, adding that current benchmark borrowing costs remain “restrictive.”

For this week, GS yields may rise as markets await the release of US December inflation data, which could affect the Federal Reserve’s policy decision this month, the first trader said.

“A strong set of US inflation data, along with robust labor reports, could bolster views that the US Federal Reserve can afford to hold policy rates steady in their January meeting, on account of the lingering strength in the US economic performance,” the trader said.

“We are watchful on how the BSP and the market will react to the upcoming US CPI,” the second bond trader added.

December US producer and consumer price index data will come out on Jan. 14 (Tuesday) and Jan. 15 (Wednesday), respectively. — Kenneth H. Hernandez

How PSEi member stocks performed — January 10, 2025

Here’s a quick glance at how PSEi stocks fared on Friday, January 10, 2025.

PHL stocks may climb before US inflation reports

PHILIPPINE STAR/KRIZ JOHN ROSALES

PHILIPPINE SHARES may rebound this week on bargain hunting as markets await the latest US inflation reports that could affect the pace of the Federal Reserve’s easing cycle.

On Friday, the bellwether Philippine Stock Exchange index (PSEi) fell by 0.23% or 15.25 points to close at 6,496.32, while the broader all shares index declined by 0.06% or 2.44 points to 3,754.85.

Week on week, the PSEi retreated by 1.63% or 107.49 points from the 6,603.81 close on Jan. 3.

“Deceleration in rate easing and global inflation anxieties spilled over to [last] week’s trades… The release of the Fed December minutes spelled the direction of global fund movements [last] week, as it put into paper a lot of market anxieties that are beginning to unfold in 2025,” online brokerage firm 2TradeAsia.com said in a market note.

The reality of US President-elect Donald J. Trump’s election victory on a platform of aggressive tariffs and deportation of some immigrants landed hard at the Federal Reserve’s meeting last month, with US central bank officials raising new inflation concerns and staff suggesting the incoming administration’s plans may slow economic growth and raise unemployment, Reuters reported.

Amid an otherwise sanguine outlook of continually slowing inflation, participants at the Dec. 17-18 meeting “noted that recent higher-than-expected readings on inflation, and the effects of potential changes in trade and immigration policy, suggested that the process could take longer than previously anticipated,” according to minutes of that session released on Wednesday.

That uncertainty, along with the full percentage point in interest rate cuts delivered by the central bank’s policy-setting Federal Open Market Committee in 2024, added to arguments for pausing further reductions in borrowing costs.

For this week, the local market may rise on bargain hunting following last week’s drop, Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“However, a strong rally is not yet expected amid lingering risks. This week, investors are expected to watch out for new catalysts. Primarily, investors are expected to watch out for the US December 2024 inflation data, which is expected to give clues on the Federal Reserve’s policy outlook,” Mr. Tantiangco said. He put the PSEi’s support at 6,400 and major resistance at 6,800.

US December producer and consumer price index data will be released on Jan. 14 (Tuesday) and Jan. 15 (Wednesday), respectively.

For his part, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort placed the market’s support at 6,400 and resistance at 6,635-6,820.

2TradeAsia.com put the PSEi’s support at 6,400-6,500 and resistance at 6,800.

“With no sight of a sweeping tide that could rouse the local market, at least in the very short term, brace for volatile trading sessions that have yet to decouple from the Trump-interest rate-inflation news cycle,” it said. — R.M.D. Ochave with Reuters

Peso may drop on US jobs data

BW FILE PHOTO

THE PESO may stay at the P58 level against the dollar this week as stronger-than-expected US jobs data stoked inflation concerns in the world’s largest economy, pushing back US Federal Reserve rate cut expectations.

The local unit closed at P58.36 per dollar on Friday, strengthening by 14 centavos from its P58.50 finish on Thursday, Bankers Association of the Philippines data showed.

Week on week, however, the peso depreciated by 16 centavos from its P58.20 finish on Jan. 3.

The peso rebounded against the dollar on Friday due to profit taking as the market awaited the US nonfarm payrolls data released later in the day, a trader said by phone.

The peso was also supported by Philippine October foreign direct investment (FDI) data, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

FDI net inflows grew by 50.2% year on year to $1.02 billion in October from $681 million in the same month in 2023, Bangko Sentral ng Pilipinas (BSP) data released on Friday showed.

This was the highest level since the $1.37-billion net inflow recorded in February 2024.

For the first 10 months of 2024, FDI net inflows totaled $7.679 billion, up 8.2% from the $7.096 billion seen a year prior.

The BSP expects FDI net inflows to reach $9 billion at end-2024.

For this week, the trader said the peso could weaken anew following the strong US nonfarm payrolls report.

The trader sees the peso moving between P58 and P58.50 per dollar, while Mr. Ricafort expects it to range from P58.15 to P58.65.

US job growth unexpectedly accelerated in December while the unemployment rate fell to 4.1% as the labor market ended the year on a solid footing, reinforcing views that the Federal Reserve would keep interest rates unchanged this month, Reuters reported.

The Labor department’s closely watched employment report on Friday also showed a decline last month in the number of people who have permanently lost their jobs and a shortening in the median duration of unemployment. A rise in these measures had raised concerns about labor market deterioration.

The upbeat report supported the US central bank’s cautious stance toward further monetary policy easing this year amid mounting fears that pledges by President-elect Donald J. Trump to impose or massively raise tariffs on imports and deport millions of undocumented immigrants could stoke inflation.

Nonfarm payrolls increased by 256,000 jobs last month, the most since March, the Labor department’s Bureau of Labor Statistics said. Data for October and November was revised to show 8,000 fewer jobs added than previously reported.

Economists polled by Reuters had forecast payrolls advancing by 160,000 jobs, with estimates ranging from 120,000 to 200,000.

Hiring has slowed in the aftermath of the US central bank’s hefty rate hikes in 2022 and 2023, but labor market resilience, mostly reflecting historically low layoffs, is powering the economy by supporting consumer spending via higher wages. The economy is expanding at well above the 1.8% pace that Fed officials regard as the non-inflationary growth rate.

Financial markets overwhelmingly expect the Fed to keep its benchmark overnight interest rate unchanged in the 4.25%-4.5% range at its Jan. 28-29 meeting, CME’s FedWatch tool showed. The central bank has lowered its policy rate by 100 basis points since launching its easing cycle in September. — A.M.C. Sy with Reuters

Funding snag to delay LRT-2 west extension

PHILIPPINE STAR/MIGUEL DE GUZMAN

THE construction of Light Rail Transit Line 2’s (LRT-2) West Extension project suffered another delay due to funding unavailability, according to the Light Rail Transit Authority (LRTA).

According to Hernando T. Cabrera, LRTA administrator, no definite construction date has been set for the project as a result, with the rail line also lacking a multi-year obligational authority (MYOA), a prerequisite for budgeting works that take multiple fiscal years to complete. An MYOA signifies the government’s commitment to finance future requirements beyond the current budgeting period. 

“We do not have yet (a target construction date) because we do not have funds. We are also missing the MYOA,” Mr. Cabrera told reporters last week.

The Department of Transportation said last year that it is hoping to begin the construction of the West Extension project in 2025. 

The project has secured P2 billion from the General Appropriations Act out of the nearly P11 billion estimated cost of the project, Mr. Cabrera said.

The LRTA through the Transportation department has a pending MYOA request.

“It is a domestically funded project. So what we are doing now is we have consultants now who are preparing the conceptual designs,” he said.

The proposed LRT West Extension covers three kilometers from Recto Avenue station to Pier 4. This line will have three stations: Tutuban, Divisoria and Pier 4.

The project also includes the procurement of additional light rail vehicles to meet growing passenger demand.

Mr. Cabrera said the P2 billion so far obtained for the project will support preliminary activities such as acquiring right of way.

“(The preliminary works) will take time. As of now we are finalizing the agreements with the utilities,” he said.

At the moment, the LRTA is finalizing relocation agreements to move the equipment of Manila Electric Co. (Meralco), Maynilad Water Services, Inc. and telecommunications companies that will be affected by the construction.

Meanwhile, Mr. Cabrera said that there is also a possibility to tap the private sector for the project in the absence of funding.

“What I can say is this can be (a public-private partnership. Not the entirety but this can have several packages. The west extension can be domestically funded as planned, and then the operations and maintenance can be for PPP,” he added. — Ashley Erika O. Jose

Visa hurdles seen keeping Chinese tourists away

A passenger wears a mask as she arrives at the Ninoy Aquino International Airport in Pasay City. — REUTERS

TOURIST ARRIVALS from China fell short of the 2 million projection last year as the Philippines maintained a visa regime that is stricter than those of its ASEAN neighbors, the Department of Tourism (DoT) said.

Citing the suspension of the electronic visa scheme for Chinese visitors, Tourism Secretary Ma. Christina G. Frasco said arrivals from China numbered 312,222 in 2024.

In 2019 — the last full pre-pandemic year — tourist arrivals from China totaled 1.74 million.

“The suspension of the e-visa policy for Chinese travelers was in stark contrast to the policies of our ASEAN neighbors, wherein a visa is no longer required from China or Chinese visitors, or they allow a visa on arrival,” Ms. Frasco said.

The DoT said it is hoping for the e-visa program to be restored for China. An e-visa scheme is also being readied for India.

“We are grateful that the President has directed an e-visa authority option that will be explored for the Indian market,” she said.

The DoT also cited the reduced budget for tourism programs and projects, saying they hinder the achievement of tourist arrival goals.

In particular, the department said that its budget for branding and promotion was slashed to P100 million in the General Appropriations Act, from the P500 million proposed in the National Expenditure Program.

“The challenge of very limited funding for branding and promotions (adds to) the difficulty of making sure the Philippines is present in the consciousness of potential travelers in markets around the world,” Ms. Frasco said.

“We anticipate it will affect tourism arrivals considering the reduced opportunity to market the Philippines,” she added.

The budget cuts for construction and rehabilitation of tourism roads were also cited as a concern, with only P6 billion allocated for such activities in 2025 from P15 billion in 2024.

Last year, the Philippines received 5.95 million international visitors, up 9.15% but below the 7.7 million target. — Justine Irish D. Tabile

DoLE says measures in place to address upskilling worries

TESDA

THE Department of Labor and Employment (DoLE) said it is confident the government’s efforts to address the jobs-skills mismatch will bear fruit, after the World Economic Forum (WEF) urged the Philippines to address critical shortcomings in education and job preparation to unlock the potential of its working-age population.

Labor Secretary Bienvenido E. Laguesma said that job-skills mismatch has been a “critical and important issue” requiring immediate attention.

“It is this recognition that both executive and legislative measures have been drafted, put in place and implemented and will continue to be implemented,” he told BusinessWorld via Viber chat.

Among the measures to address the perceived gaps in skills mismatch are the Philippine Development Plan 2023-2028, the Labor and Employment Plan 2023-2028 and the National Technical Educational and Vocational Development Plan 2023-2028, he said.

He added that the Philippine Qualification Framework-National Coordinating Council has been established to address the skills requirements of business enterprises. The council is chaired by the Department of Education (DepEd) and representatives from the DoLE, the Technical Education and Skills Development Authority (TESDA), the Commission on Higher Education, and the Professional Regulation Commission.

“There’s a Philippine Skills Framework led by the Department of Trade and Industry (DTI) that also helps out in addressing the gaps,” he noted.

A Joint Memorandum Circular between DepEd and TESDA calling for the embedding of vocational-technical subjects in the senior high school curriculum was also issued early last year, he added.

DoLE’s JobStart program, which combines on-the-job training with practical internships, and TESDA’s ongoing review and enhancement of training modules, are also among the government’s efforts to equip students with crucial skills before entering the workforce, Mr. Laguesma noted.

TESDA continuously reviews and updates its training modules to keep up with rapid technological advances and the evolving workplace to meet the needs of businesses and industry, he added.

“These interventions are in place and being undertaken vigorously,” the labor chief noted.

The Trabaho Para sa Bayan Act (Republic Act No. 11952) and the Enterprise Based Education and Training Act (RA No. 12063) have been passed to provide for the training, upskilling and retooling of workers to meet industry demands and enhance global competitiveness.

The WEF in its Future of Jobs Report 2025 published on Wednesday said fully harnessing the Philippines’ demographic dividend requires investment in education and skills development to boost workforce readiness.

Two-thirds of employers flagged skills gaps as a major challenge to growth in the next five years, leading them and the government to expand reskilling efforts.

By 2030, projections show that out of 100 workers, 32 will not require training, 28 will upskill in their current roles, 29 will upskill and shift to new roles, and 10 are unlikely to pursue additional training.

Employers in the WEF survey identified the top five public policy priorities to enhance talent availability in the Philippines, which are flexibility in hiring and firing practices (57%), reskilling and upskilling (52%), funding for reskilling and upskilling (48%), improvements in public education (48%) and changes to immigration laws (44%). — Chloe Mari A. Hufana

DoE forecasts 2025 new capacity at 6,841 MW

THE Department of Energy (DoE) is expecting around 6,841 megawatts (MW) of additional capacity this year from power projects due to start operations.

Renewables topped the energy projects set for delivery this year, the DoE said in a report. Other committed capacities are 1,320 MW from gas-fired power plants, 500 MW from coal-fired power plants, and 76 MW from oil-based power plants.

Battery energy storage systems with a combined capacity of 330 MW are also expected to become operational, storing excess power from intermittent generating sources and injecting electricity onto the grid when needed.

Of the new capacity, 5,754 MW will rise on Luzon, 855 MW in the Visayas, and 232 MW in Mindanao.

Among Luzon’s large-scale new projects are the three 440-MW Batangas Combined Cycle Power Plants of Excellent Energy Resources, Inc., the 350-MW Unit 4 coal-fired power plant of Masinloc Power Partners Co., Inc., and the 150-MW Unit 4 coal-fired power plant of Mariveles Power Generation Corp.

The DoE is also looking at the completion and commercial operations of the 218.75-MW Talim Wind Power Project, the 160-MW Balaoi and Caunayan Wind Power Project, and the 128-MW Tanay Wind Power Project.

In the Visayas, power projects scheduled for commercial operations include the 300-MW Kananga-Ormoc Solar Power Project, the 137.48-MW Calatrava Solar Power Project, the 130.05-MW Bacolod Solar Power Project, and the 112-MW San Isidro Solar Power Project Phase 1.

New plants joining the Mindanao grid include the 120-MW General Santos Solar Power Project, the 56-MW Sangali Diesel Power Project, and the 12-MW Mangima Hydroelectric Power Project.

For 2025, the demand growth forecast is 5.4% to 14,769 MW in Luzon, 16% to 3,111 MW in the Visayas, and 8.2% to 2,789 MW in Mindanao, according to the DoE.

In a briefing last week, Energy Secretary Raphael P.M. Lotilla said he expects “a much better situation” this year compared with several power projects coming online as well as newly energized transmission lines to deliver their output.

“While it is an election year, it is also not an El Niño year; in fact, it is seen as a La Niña year and therefore the constraints that we saw last year will not be as great as this year,” Mr. Lotilla said.

In 2024, the Philippines declared 16 red alerts and 62 yellow alerts on the grid, signifying the instances when available power capacity was at risk of not meeting demand. — Sheldeen Joy Talavera

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