South Korea’s Lee pledges ‘bold’ economic policy after martial law crisis

July 3, 2025 | 2:47 pm

SOUTHKOREA-ELECTION-INAUGURATION — SOUTH KOREA’S President Lee Jae-myung delivers a speech after taking his oath during his inauguration ceremony at the National Assembly in Seoul on June 4, 2025. — REUTERS

SEOUL – South Korean President Lee Jae Myung vowed on Thursday to implement a “bold” fiscal policy to boost a flagging economy after the country’s martial law crisis and to tackle challenges posed by looming U.S. tariffs and North Korea.

Mr. Lee, who was elected on June 3 in a snap election, said it was his top priority to improve the lives of the people, whose faith in government had been greatly shaken by “a national crisis” that hammered Asia’s fourth-largest economy.

“It is a time when the proactive and bold role of national finance is more important than ever,” Mr. Lee, who has pledged to implement expansionary fiscal policy, said in his opening remarks at a news conference to mark 30 days in office.

Mr. Lee’s predecessor, Yoon Suk Yeol, declared martial law in December, shocking a nation that had come to pride itself as a thriving democracy having overcome military dictatorship in the 1980s and triggering an unprecedented constitutional crisis.

Mr. Lee’s administration has proposed $14.7 billion of extra government spending to support sluggish domestic demand. Parliament, controlled by his Democratic Party, is expected to vote on the budget bill soon.

The president also said in his opening remarks that he was doing his best to achieve a “mutually beneficial and sustainable” outcome from trade negotiations with the United States.

South Korea is hoping to contain the impact of U.S. President Donald Trump’s threatened punishing tariffs that could weigh on an export-reliant economy with major semiconductor, auto and steel industries.

US TARIFF TALKS

Mr. Lee said tariff negotiations with the United States had “not been easy,” and he could not say if an agreement was possible in time for Washington’s July 8 deadline when tough reciprocal import duties are set to kick in.

During high-level trade talks last month, Washington raised issues related to South Korea’s non-tariff barriers, as Seoul already imposes nearly zero tariffs on U.S. imports under a free trade agreement, a senior South Korean trade official has said.

South Korea’s top trade envoy Yeo Han-koo said on Thursday that Seoul wanted to ensure that it was not put at a comparative disadvantage as other major countries conduct last-minute trade negotiations with the United States.

Mr. Lee, a liberal former human rights lawyer, said the alliance with the United States was the cornerstone of his foreign policy, but pledged a pragmatic approach as the basis of a speedy effort to improve ties with China and Russia.

Peace with North Korea was not only a national security priority, but a crucial part of a “virtuous cycle of peace and economic growth,” he said.

Mr. Lee said tension with Pyongyang has had a real negative economic impact despite South Korea’s strong military capabilities, funded by a defence budget larger than the North’s total economic output.

“Even if you’re at war, you have to have diplomacy and dialogue. To completely cut off dialogue is truly foolish,” Lee said when asked about his plans on relations with Pyongyang. The two Koreas remain technically in a state of war under a truce that ended fighting in 1953.

He said he had been surprised by the swift response from North Korea after he suspended loudspeaker propaganda broadcasts directed across the border and said he would take additional steps to ease tensions.

Under Mr. Yoon, who took a hard line against Pyongyang, the two sides scrapped a 2018 military agreement that sharply escalated hostility. – Reuters

The Italian job: how Rome plans to work around NATO spending hike

July 3, 2025 | 2:45 pm

Italy-EU-flag — THE ITALIAN and European Union flags flutter in the wind at the Quirinale presidential palace in Rome Jan. 28, 2015. — REUTERS

ROME – Italy, along with other NATO countries, has agreed to sharply increase defense spending over the next decade, but Giorgia Meloni’s government is already working on imaginative ways to minimize any hit to its strained public finances.

Unlike Spain, which openly said it could not go much above the old NATO target of 2% of national output, at a summit last week Italy toed the line imposed by U.S. President Donald Trump, committing to 5% by 2035 – at least on the surface.

Ms. Meloni, aware that opinion polls show raising defense spending is highly unpopular among Italians, sought to reassure them after the NATO summit.

“These are necessary expenses, but we are committed to not diverting even a single euro from the government’s other priorities,” she told reporters.

Italy’s defense spending amounted to just 1.5% of output in 2024, near the low end of the 32 NATO members.

The government this year met the previous 2% target by a raft of accounting changes, factoring in previously excluded items such as soldiers’ pensions and the coastguard.

But hitting the new goal will be far more difficult. On paper, it would require an increase in spending of more than 60 billion euros ($71 billion), a huge task for a country with the euro zone’s second largest debt pile, at 135% of output.

The European Commission, which is also urging EU states to hike defense spending, has adopted a so-called “escape clause” from its fiscal rules to allow increases of 1.5% of gross domestic product per year through 2028.

Italy, however, has less scope to use this clause because its deficit is already considered too high.

CIVILIAN INFRASTRUCTURE

Italian officials said Ms. Meloni would double down on this year’s approach by including items already budgeted for that have at best a tenuous link to defense, hoping the tactic is accepted by NATO and the European Commission.

Italy, the euro zone’s third largest economy, could prove a litmus test for other NATO countries that have also signed up to the 5% goal but face an uphill struggle to reach it.

Rome is considering civilian infrastructure such as ports, shipyards, and even an ambitious, long-planned bridge connecting Sicily to the mainland, officials said.

Overall, Italy plans to invest 206 billion euros to upgrade its railways and a further 162 billion for its roads and motorways, according to a parliamentary study based on government data. Many of these projects could now receive the defence and security label.

“A large part of planned infrastructure investments fall within the NATO parameters because they have dual-use applications,” Deputy Transport Minister Edoardo Rixi told Reuters.

In response to a Reuters request for comment, the EU Commission said it was for Italy to determine whether an infrastructure’s main purpose was military or civilian.

A NATO official said countries must have “a credible path” to achieve their defence spending pledges “and they will provide plans on how they will support increases in their defence investments each year”.

In promising remarks for Italy’s plans, he added: “We need civilian transportation networks that can support military mobility. As well as tanks, fighters and warships, we need roads, rail, and ports.”

Italy has already identified necessary strategic infrastructure projects worth a massive 483 billion euros to be completed over future years, meaning there is no shortage of potential schemes to be included.

PLAYING FOR TIME

The new NATO target includes a core component for defense spending, which must reach 3.5% of GDP by 2035, and a further element on broader security-related investments, worth 1.5%.

Upgrading ports in the northern cities of Trieste and Genoa, as well as a shipbuilding and maintenance hub in nearby La Spezia, would be eligible for meeting NATO criteria, Rixi said.

“If you need to build, repair and maintain military ships as well as transport troops and military equipment, you need to have adequate infrastructures to do so,” he said.

Time is also a key factor. With the centre-left opposition saying defence spending will subtract resources from the welfare state, Meloni wants to delay any increases until after the next election due in 2027, officials said.

“The real challenge for Meloni is not the amount but the timing,” said Francesco Galietti, founder of Rome-based political risk think-tank Policy Sonar.

In 2027 Italy will also be able to fully tap the EU’s fiscal leeway “escape clause”, provided it gets its deficit below 3% of GDP in 2026 as planned.

For this reason, Rome successfully lobbied NATO allies to avoid a minimum annual defence spending increase being imposed, an official with knowledge of the negotiations said, adding that Rome was also instrumental in delaying the 5% target year to 2035 from a previously planned 2032.

“The message is clear, Italy will do what it must to meet its NATO commitments, but it will do so in its own time,” Mr. Galietti said. – Reuters

Hong Kong retailers under strain as changing trends drive store closures

July 3, 2025 | 2:42 pm

City-sunset — CITYSCAPE view of the Victoria Harbour region in Hong Kong. —MANSON YIM-UNSPLASH

HONG KONG – Hong Kong’s retailers are battling against shifting consumer habits, as visitors spend less and locals head across the border to China for cheaper dining and shopping, leading to a wave of store closures.

A 36-year-old Chinese seafood restaurant chain and a popular high-end food court in the bustling Causeway Bay district closed this week.

Other recent closures in the financial hub include cinema chains, a major catering group, a 41-year-old bakery and a three-decade-old congee chain.

Weak domestic spending and cheaper prices in Shenzhen, bordering Hong Kong, have compounded retailers’ woes, according to industry figures and analysts.

Furthermore, China’s economic slowdown, U.S.-China geopolitical tensions and a national security clampdown have also weighed on business sentiment and hurt Hong Kong’s small and open economy. The city’s GDP is forecast to grow between 2%-3% this year, compared with 2.5% last year and 3.2% in 2023.

“The change in consumption patterns is irreversible,” said Annie Yau Tse, chairwoman of Hong Kong’s Retail Management Association.

Hong Kong was once a prime destination for high-spending mainland visitors but mass anti-government protests in 2019 and COVID restrictions led to a decline in its appeal.

The authorities have launched initiatives to revive tourism, including hosting large-scale events such as Coldplay concerts and a Manchester United exhibition match at a new harborside stadium.

While visitors are returning to near 2018 levels with May arrivals up 20% to 4.08 million visitors versus 4.95 million in 2018, spending remains soft.

Retail sales by value rose 2.4% in May from a year earlier to HK$31.3 billion ($4 billion), the first rise in 14 months, government data showed on Wednesday. However, it remains only around 77% of the HK$40.5 billion in May 2018.

“We are trying hard to think of ways to turn the traffic into business,” Yau Tse said.

Jack Tong, director of Savills Research & Consultancy, said the recent string of closures was due to a “structural shift in the local retail market” starting from 2023.

It is “no longer strong enough to support such retail trades and would be beyond repair even by further reducing rents.”

Overall prime street rents in the first quarter have fallen back to 2003 levels, he said.

“The rise in local outbound travel in Hong Kong and changes in mainland tourists’ spending patterns and preferences in Hong Kong and Macau continued to weigh on the overall retail sector during the financial year,” jeweler Chow Tai Fook said.

Last month, Cafe de Coral reported a 29.6% drop in net profit for the 2024/25 year ended in March, citing a weak economy and consumer sentiment.

Despite the tough conditions, some signs of recovery are emerging.

Vipul Sutariya, who attended the jewelry fair in June, said Chinese dealers were back at the fair “not to buy immediately but to ask, which is the biggest change in the past 1.5 years,” he said. “In my view that’s a good sign.” – Reuters

US job growth expected to slow in June, unemployment rate forecast to rise

July 3, 2025 | 2:40 pm

WASHINGTON – The U.S. labor market likely slowed further in June, with the unemployment rate expected to have edged up to more than a 3-1/2-year high of 4.3%, as economic uncertainty stemming from the Trump administration’s policies curbed hiring.

The anticipated moderation in job growth will probably be insufficient to spur the Federal Reserve to resume its interest rate cuts in July, with the Labor Department’s closely watched employment report on Thursday also expected to show solid wage gains last month.

The report is being published early because of the Independence Day holiday on Friday. A string of indicators, including the number of people filing for state jobless benefits and receiving unemployment checks, has pointed to labor market fatigue after a strong performance that shielded the economy from recession as the U.S. central bank aggressively tightened monetary policy to combat high inflation.

Economists say President Donald Trump’s focus on what they call anti-growth policies, including sweeping tariffs on imported goods, mass deportations of migrants and sharp government spending cuts, has changed the public’s perceptions of the economy. Business and consumer sentiment surged in the wake of Trump’s victory in the presidential election last November in anticipation of tax cuts and a less stringent regulatory environment before slumping about two months later.

“It’s a very uncertain time,” said Martha Gimbel, executive director of the Budget Lab at Yale University. “It’s just hard for people to make decisions right now.”

Nonfarm payrolls likely increased by 110,000 jobs last month after rising by 139,000 in May, a Reuters survey of economists showed. That reading would be below the three-month average gain of 135,000. Estimates ranged from a rise of 50,000 to 160,000 jobs. Average hourly earnings are forecast to jump 0.3% after advancing 0.4% in May. That change would keep the annual increase in wages at 3.9%.

Economists estimate the economy needs to create between 100,000 and 170,000 jobs per month to keep up with growth in the working-age population. They will be watching for revisions to the April and May data. Revisions this year have been skewed to the downside. Some economists speculated that small businesses were filing late responses to the establishment survey, from which the nonfarm payrolls are derived.

“Whatever the cause of the revisions, the established pattern means it makes sense to subtract about 30,000 from the first estimate of June payrolls and to focus on the trend rather than one month’s numbers,” said Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics.

Much of the slowdown in job growth reflects tepid hiring. Layoffs remain fairly low, with employers generally hoarding workers following difficulties finding labor during and after the COVID-19 pandemic.

RISING LAYOFFS

But layoffs are picking up and the lackluster hiring means fewer opportunities for those who lose their jobs, accounting for the anticipated uptick in the unemployment rate.

A survey from the Conference Board last week showed the share of consumers who viewed jobs as being “plentiful” dropped to the lowest level in more than four years in June.

The expected rise in the jobless rate last month to the highest level since October 2021 would follow three straight months in which it held steady at 4.2%. Most economists expect the unemployment rate will continue rising through the second half of this year, and potentially encourage the Fed to resume its policy easing cycle in September.

The Fed last month left its benchmark overnight interest rate in the 4.25%-4.50% range, where it has been since December. Fed Chair Jerome Powell on Tuesday reiterated the central bank’s plans to “wait and learn more” about the impact of tariffs on inflation before lowering rates again.

“We are starting to see some important shifts that perhaps paint a worse light on the jobs market than most people have been thinking,” said James Knightley, chief international economist at ING. “I don’t think June’s report is going to be weak enough to make the case for a July rate cut, but the risk is that the Fed is starting to think … perhaps we need to put a bit more emphasis on where the jobs numbers are heading now.”

Some economists, however, see limited scope for the unemployment rate to rise as the immigration crackdown shrinks the labor pool. With the White House having revoked the temporary legal status of hundreds of thousands of migrants, economists said fewer than 100,000 additional jobs per month would likely be needed to keep the jobless rate stable.

The healthcare sector likely continued to dominate the job gains last month. But leisure and hospitality employment could have been curbed by some migrants staying home in fear of being rounded up for deportation. Similar concerns could also have affected construction payrolls, while tariffs probably continued to weigh on manufacturing employment.

Moderate federal government job losses likely persisted. The administration’s unprecedented campaign to drastically shrink the federal workforce has been tangled in legal fights.

“The mass of federal layoffs, the voluntary retirements and any reductions in force probably do not slow payrolls until October,” said Michael Gapen, chief U.S. economist at Morgan Stanley. “Also, there has been little evidence yet of slower federal government hiring.” – Reuters

Australia says US missile purchase shows commitment to defense spending

July 3, 2025 | 2:39 pm

STOCK PHOTO | Image by Rebecca Lintz from Pixabay

SYDNEY – Australia said its A$2 billion ($1.3 billion) purchase of supersonic missiles from the United States underscores its commitment to defense spending, though Prime Minister Anthony Albanese has resisted U.S. calls to agree to a target of 3.5%.

Minister for Defense Industry Pat Conroy on Thursday confirmed the purchase of AIM-120C-8 and AIM-120D-3 missiles, developed by American defense company Raytheon Technologies.

They will be used by Australia’s F/A-18 and F-35 fighter jets and a new army brigade focused on striking aerial targets up to 500 kilometers away, he added.

Mr. Albanese, who is yet to meet President Donald Trump, has rebuffed a U.S. request to agree to lift long-term defense spending to 3.5% of gross domestic product. It’s forecast to rise to 2.3% by 2033.

Foreign Minister Penny Wong, who met with her U.S. counterpart Marco Rubio on Tuesday in Washington, said Australia took a “capability approach” and had already committed to the largest peacetime increase in defense funding.

“I know there will be more capability required, I think we all understand that, and we will fund the capability Australia needs,” she said on Thursday in a television interview with Sky News Australia.

Mr. Albanese’s scheduled meeting with Mr. Trump on the sidelines of the G7 was cancelled when Mr. Trump left the summit early due to tensions between Israel and Iran.

Ms. Wong said the security allies were working to reschedule a leaders’ meeting.

Seeking to respond to China’s build-up of its military, Albanese pledged A$74 billion ($47 billion) last year to buy missiles from Europe and the U.S., including A$21 billion to establish a Guided Weapons and Explosive Ordnance Enterprise in Australia.

The sale of 400 missiles to Australia through the U.S. foreign military sales program was notified to the U.S. Congress in April. A further $2 billion proposed sale of U.S. electronic warfare systems and equipment for Australia’s F/A-18 Super Hornet and EA-18 Growler fighter jets was notified in June. – Reuters

Saudi Arabia, Indonesia sign several deals worth around $27 billion, state news agency says

July 3, 2025 | 2:36 pm

CAIRO – Saudi Arabia and Indonesia signed several deals and memorandums of understanding worth around $27 billion between private sector institutions in fields including clean energy and petrochemicals, Saudi state news agency SPA reported on Wednesday.

Indonesian President Prabowo Subianto visited the Gulf kingdom on Wednesday and met Saudi Crown Prince Mohammed bin Salman.

The two sides also agreed to bolster cooperation in the supply of crude oil and its derivatives, improve supply chains and their sustainability in the energy field and strengthen cooperation in mineral resources, the Saudi state news agency said.

Trade between the two countries amounted to around $31.5 billion in the last five years, according to SPA.

Saudi Arabia’s ACWA Power signed initial agreements to explore investment opportunities into renewable energy projects with sovereign wealth fund Danantara Indonesia and state energy firm Pertamina, according to a statement from Danantara.

The companies are expected to explore potential investments with up to $10 billion worth of project funding, Danantara added. – Reuters

Puregold Channel’s Si Sol at si Luna rides on the momentum as viewers clamor for more episodes each week

July 3, 2025 | 11:00 am

Photo-1-OL — In the next episode of Si Sol at si Luna, Sol gets a chance to meet Ara’s family.

“Bitin!” That’s the common thread in Puregold Channel’s Si Sol at si Luna comment sections as followers of the series ask, “Can we have more episodes per week?” The clamor has only grown stronger with each release, all because “paganda nang paganda ang story,” as viewer @skipper2867 puts it.

In a previous episode of Puregold Channel’s hit digital series, viewers felt the thrill of anticipation as Sol (Zaijian Jaranilla) and Luna (Jane Oineza) finally opened up to each other. While Episode 5 moved audiences to cling to their romantic hopes, a heartfelt conversation between Sol and Luna hinted at a meaningful shift in their connection. This also yielded revelations about Sol and Luna’s psyches, adding depth to their dynamic as they prepared to work on Sol’s film project.

Luna waits for Sol so they can begin working on his film project.

After each episode, fans affirm how deeply invested they have become in the story, with many lamenting that one episode is no longer enough. The consensus is clear: Si Sol at si Luna tells a beautiful love story, and viewers want more of it.

Indeed, avid fan @bernadettemanayag7952 says, “Paganda nang paganda! Puwede ba araw-araw na ipalabas, hehe. Ganda ni Luna at pogi ni Sol; gano’n din si TL Ben. Pareho silang bagay kay Luna. Sana may kakambal ka Luna para kay TL Ben. Hehe.”

As the story of Si Sol at si Luna evolves, so does its emotional resonance, or how viewers connect with the experiences and feelings depicted in the show.

Will Sol arrive in time for the two to meet and talk?

With only five episodes so far, some fans are even inspired to share their own truths about love, attesting to how relatable and grounded the series has become.

“Sol, ang love, hindi hinahanap ‘yan. Kusang dumadating ‘yan kaya ‘wag kang sumuko. Darating din ang love sa tamang oras,” viewer @sage_4812 shares, reminding Sol and other followers that love arrives on its own time.

While the narrative continues to touch viewers’ hearts, the cast’s performances are also earning their own well-deserved spotlight.

“Alam na ng lahat na isa si Jane Oineza sa pinakamagagaling na artista sa kanilang henerasyon. Samahan pa ni Zaijian na ang husay din sa pag-arte. Kaya kumpleto na,” writes @evangelinpalacio55.

Kind-hearted and patient Sol helps out Ara in the next episode of Si Sol at si Luna.

It’s no fluke then that with each new episode, Puregold Channel’s Si Sol at si Luna racks up hundreds of thousands of views. And every installment receives several likes and comments.

Appreciating the story’s sincerity and heart, @MaJaYaPa says, “Thank you sa mga ganitong content, Ninang. Sana may mga ganitong series ka ulit next season.”

True enough, with Ang Babae sa Likod ng Face Mask, Ang Lalaki sa Likod ng Profile, My Plantito, and now with Si Sol at si Luna, Puregold Channel has become a pioneer in retailtainment, sharing well-crafted stories that reflect Filipino themes and culture.

Fans now patiently wait for the next episode of Si Sol at si Luna, as the last episode promised a longer and more meaningful interaction between the two.

As Sol and Luna’s story deepens, so does its emotional resonance, or how netizens
connect with the experiences depicted in the show.

Catch Si Sol at si Luna’s sixth episode, ‘Meet the Family’, on July 5, Saturday, at 7 p.m., only on Puregold Channel.

Subscribe to Puregold Channel on YouTube, like @puregold.shopping on Facebook, and follow @puregold_ph on Instagram and X, and @puregoldph on TikTok for more updates and behind-the-scenes content.

Link to the previous episode: https://youtu.be/asoXvjrhR2A?feature=shared

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.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

Kinetix Kids: Where the power of play stimulates holistic child development

July 3, 2025 | 9:00 am

Imagination-Station-OL — Imagination Station

KINETIX KIDS, a premier play-gym, activity, and specialized training center, celebrates the “Power of Play” by offering an environment where children develop their minds, bodies, and social connections through enjoyable and interactive experiences. Covering 824 sq.m., Kinetix Kids provides a fun and stimulating space for kids to learn and play together.

“We are dedicated to supporting the holistic development of children through innovative play spaces, professional services, and community-driven initiatives,” says Kinetix Kids Marketing Head Shalla Yu. She adds, “We are not just selling playtime; we’re building a movement that celebrates growth, confidence, and joy.”

The Play-Gym Experience

Kinetix Kids’ expansive play area immediately engages visitors with diverse sections designed to foster various aspects of children’s development. Features like the Moon Wall Spider challenge physical strength and strategic thinking, while the Imagination Station sparks creativity. It’s an ideal venue for playdates, filled with laughter and joyful interactions.

Kinetix Kids offers walk-in options and various memberships:

Space Explorer: A one-year foundational membership with standard Explorer Play Pass rates, allowing event bookings and class enrollment.
Space Captain: A six-month membership including six 180-minute play passes and one complimentary 90-minute session, suitable for structured play without a long-term commitment.
Space Commander: The premium, year-long membership offering unlimited play access, special rates for events and classes, complimentary guardian access, a 50% guest discount, and a 75% discount on a day passes at Kinetix Lab, a premier strength and conditioning gym in the Philippines. This is perfect for frequent visitors.

Specialized Training Center

Beyond the play-gym, Kinetix Kids provides specialized one-on-one and group training classes some of which are listed below.

Occupational Therapy: Led by in-house Doctor of Occupational Therapy Dra. Pilar Balboa, who holds a post-professional doctorate from Boston University. Dra. Pilar joined Kinetix Kids to integrate theory-based, evidence-driven practice in a natural, holistic environment. “I wanted to be part of something innovative and provide kids with a therapeutic experience that goes beyond the usual clinical setting,” says Dra. Pilar. Kinetix Kids’ equipment, such as swings, slides, and balance beams, are ideal for sensory integration, which involves the nervous system processing sensory information from the environment and body. “Kinetix Kids is geared with equipment to help kids better process and respond to sensory input from their environment; thus, enhance overall learning,” says Dra. Pilar. She primarily works with neurodiverse children of all ages.
Doctor of Occupational Therapy Dra. Pilar Balboa
Early Education: Conducted by Early Education Specialist and Branch Manager Teacher Dana Macanlalay, who has a Bachelor of Science in Child Development and Education, majoring in Special Education. Teacher Dana emphasizes Kinetix Kids’ holistic approach: “We don’t just focus on academics — we support every part of a child’s growth: physical, emotional, social, and cognitive. The programs are designed to be developmentally appropriate and child-centered, which means we meet each child where they are and help them grow at their own pace,” she shares. Teacher Dana works with 2-3 year olds, using visuals, hands-on activities, songs, and gestures to engage them.
Early Education Specialist and Branch Manager Teacher Dana Macanlalay, LPT
Speech-Language Pathology: Services are provided by in-house Speech-Language Pathologist Teacher Clarisse Lim, who also holds a certification in Augmentative and Alternative Communication (AAC). Services include one-on-one sessions addressing skills from early word acquisition to higher-level comprehension and reasoning. Group classes cater to different age ranges, such as “language building classes” for 2-4 year olds, “Little Detectives” for reasoning skills, and “Story Time Yoga” integrating movement with storytelling. Teacher Clarisse states, “All of these are held by professionals who have a special interest in these skills and are well-equipped for enhancing the skills needed for a child to succeed in their day-to-day environment.”

Speech Language Pathologist Teacher Clarisse Lim

Kinetix Kids also offer physiotherapy, and strength and conditioning sessions for children.

Celebrating Child’s Milestones at Kinetix Kids

Kinetix Kids also has an event hall, designed to host a variety of family celebrations, including birthdays, and other significant milestones. The event venue offers a capacity of 150 guests and provides flexible options for shared or exclusive use of the play areas. Each booking includes a basic sound system, tables, and chairs. Additionally, Kinetix Kids facilitates organized playdates for groups of 10 children or more, with optional catering services for snacks and desserts.

Power of Play Launch

Kinetix Kids launched the Power of Play campaign on June 21, 2025. The event saw attendance from invited media and families. A photo booth and a face-painting station were provided that everyone enjoyed. The Astrobuddies presented an initial dance performance, showcasing mascots Aki, Ava, and Tobi. Liza Guillion hosted the event, highlighting the concepts of the Power of Play along with an AVP. Shalla, the Marketing Head, along with Teachers Dana and Clarisse, and Dra. Pilar engaged in a short Q&A about professional services and their respective roles. The kids engaged in fun activities facilitated by Teacher Celine, focusing on parachute play, and music and movement. The event wrapped up with bubble master JayAr putting some kids, and some together with their parents, inside really huge bubbles. Kinetix Kids also hosted an open house for parents to inquire about child assessments and special services. After sitting in the program, children happily played at the Kinetix Kids amusement area for the entire afternoon.

Preschool Teacher/Digital Creator Celine Cornejo

Kinetix Kids understands that play is the ultimate teacher. It’s a vibrant avenue for children to gain new knowledge, and skills, fostering social interactions and foundational concepts across various subjects. They are committed to harnessing this inherent part of childhood for comprehensive development.

For more information and inquiries about Kinetix Kids, visit their website at https://kinetixkids.com/. Follow them on Instagram @kinetixkids and Facebook at https://www.facebook.com/kinetixkidsph.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

PEZA investments surge in 1^st half

July 3, 2025 | 12:33 am

electronics manufacturing-workers — A worker uses a microscope at an electronics manufacturing assembly plant in Biñan, Laguna, April 20, 2016. — REUTERS

THE PHILIPPINE Economic Zone Authority (PEZA) saw a 59% increase in approved investment pledges in the first six months of 2025, despite a drop in approvals in June.

In a statement, PEZA said its board approved P72.362 billion worth of investments in the January-to-June period, up 59.1% from the P45.481-billion investment pledges approved in the same period last year.

“This continued surge in investments affirms PEZA’s role as a vital engine for economic growth and job creation for the country,” PEZA Director-General Tereso O. Panga said in a statement on Wednesday.

“The confidence shown by both new and existing investors is a strong signal that our economic zones (ecozones) are thriving and open for business,” he added.

However, the PEZA board only approved P6.022 billion worth of investments in June, down by 30.4% from P8.654 billion in the same month in 2024.

In June, the PEZA board greenlit 31 new and expansion projects that are expected to bring in $166.426 million in export revenues and 3,646 jobs.

Fourteen of the approved projects will be undertaken by export-oriented enterprises, while seven projects are in the information technology and business process management (IT-BPM) sector.

Four projects involve domestic market-oriented enterprises, while four projects are in logistics.

Another project involves ecozone development, while one project involves facility development.

The majority of the projects are expected to be located in Region IV-A or Calabarzon, while the rest will be in Central Luzon, the National Capital Region, Davao Region, Central Visayas, Western Visayas and Ilocos Region.

For the January-to-June period, PEZA approved 133 projects that are expected to generate 32,983 jobs and have $1.26 billion in export value.

The majority of these projects are in manufacturing, while 39 are IT-BPM projects, 12 are domestic market-oriented enterprises, 10 are facility development projects, while nine are ecozone developments.

There are four utility projects and another four are in logistics.

“South Koreans come in as the biggest investor for the first half of the year, followed by the Americans, Chinese, Dutch and Japanese,” said PEZA.

“In terms of sectoral investments, manufacturing of food and beverage products tops the list, followed by ecozone development and IT-BPM,” it added.

After the investment performance in the first half, Mr. Panga said he is “optimistic” that PEZA will achieve its targets this year.

This year, PEZA is targeting investment approvals to reach at least P235 billion, and a 5% increase in both actual exports and employment.

“The Philippines is surely in a sweet spot to attract foreign direct investments at this time, and surely, Filipinos and the whole country will reap the results of our combined hard work soon,” Mr. Panga said.

PEZA said it is pursuing 50 investment leads, which it hopes will translate in actual investments.

“PEZA likewise welcomed several high-level inbound delegations during the period representing the US, China, Japan, Spain, Germany, Hong Kong, Taiwan, Singapore, Malaysia, the United Arab Emirates, and even domestic exploratory missions within the Philippines,” PEZA said.

It noted interest in electronics manufacturing and semiconductor manufacturing services, advanced manufacturing activities, aviation, automotive and information technology-business process management sectors. — Justine Irish D. Tabile

Philippines still a lower middle-income country, according to World Bank

July 3, 2025 | 12:32 am

Quiapo-pedestrian-wc — A STREET is seen in Quiapo, Manila. The World Bank still classifies the Philippines as a lower middle-income country. — PHILIPPINE STAR/RYAN BALDEMOR

THE PHILIPPINES is still classified as a lower middle-income country after just missing the threshold to achieve upper middle-income country (UMIC) status, according to the World Bank.

The World Bank’s latest country income classification showed the Philippines posted a record gross national income (GNI) per capita of $4,470. This was higher than its GNI per capita of $4,230 in the previous year.

Despite the increase in GNI per capita, the Philippines remains classified by the World Bank as a lower middle-income country — one with a GNI per capita of $1,136 to $4,495.

The Philippines’ GNI per capita was only $26 shy of the World Bank’s lower GNI per capita requirement of $4,496-$13,935 to become a UMIC. Last year, the GNI per capita requirement for a UMIC was between $4,516 and $14,005.

The World Bank computes a country’s GNI through the Atlas method, which serves as the basis of its income classifications — low, lower middle, upper middle and high. GNI refers to the total amount of money earned by its residents both inside and outside its borders.

In Southeast Asia, Vietnam overtook the Philippines in terms of GNI per capita with $4,490 but remained a lower middle-income country.

Cambodia ($2,520), Laos ($2,000), and Myanmar ($1,220) are also still classified as lower middle-income countries.

Meanwhile, Malaysia ($11,670), Thailand ($7,120) and Indonesia ($4,910) remained as upper middle-income countries.

Singapore ($74,750) and Brunei ($36,150) are still considered as high-income countries.

Other notable country movements include Costa Rica which is now classified as a high-income country; and Cabo Verde and Samoa, which both moved up to the UMIC category.

The World Bank updates country classifications by income level on July 1 every year, based on the GNI per capita of the previous calendar year.

Department of Economy, Planning, and Development Secretary Arsenio M. Balisacan in April said the country is still on track to meet its target of moving to the upper middle-income category by 2026.

However, World Bank lead economist for Brunei, Malaysia, the Philippines and Thailand Gonzalo J. Varela has said the country’s transition to UMIC status will likely take a bit longer.

“Getting there with an economy that’s growing a little bit slower than we thought about six months ago will take a little bit longer. So, we are thinking that a probable outcome is that it happens around 2027,” Mr. Varela said at a briefing on June 19.

The World Bank expects the Philippines to grow by 5.3% this year, below the government’s recently revised 5.5% to 6.5% target.

Analysts said the Philippines is unlikely to move to the UMIC category by 2027.

“I’m doubtful we could. Much work needs to be done to improve our competitiveness ranking to attract more investments,” Ateneo Center for Economic Research and Development Director Ser Percival K. Peña-Reyes told BusinessWorld in a Viber message.

The Philippines inched up a spot to 51^st in the 2025 World Competitiveness Yearbook of the International Institute for Management Development. It remained a laggard in the region, ranking 13^th out of 14 Asia-Pacific economies in the index.

Meanwhile, John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said it is possible for the Philippines to become an upper middle-income country by 2027, but this would “require stronger, more inclusive and sustained economic growth.”

Mr. Rivera said the government would have to ramp up infrastructure rollout and boost productivity in agriculture and manufacturing.

“Falling short of the UMIC threshold despite a lower benchmark highlights how structural challenges and global headwinds continue to weigh on the Philippines’ income trajectory,” Mr. Rivera said.

He also cited slower-than-expected growth, peso depreciation, and inflation pressures as factors that have hurt the country’s per capita GNI. — Aubrey Rose A. Inosante

EV stakeholders told to brace for impact of ‘One Big Beautiful Bill’

July 3, 2025 | 12:31 am

A PHOTO of an agenda with the words “One Big Beautiful Bill Act” printed in Washington, DC, May 21, 2025. — REUTERS

By Justine Irish D. Tabile, Reporter

THE DEPARTMENT of Trade and Industry (DTI) on Wednesday warned that the Trump administration’s “One Big Beautiful Bill (BBB) Act” may have a negative impact on Philippine enterprises involved in electric vehicle manufacturing and supply-chain operations.

The US Senate on Tuesday approved the massive tax cut and spending bill by the narrowest of margins, advancing a package that would slash taxes, reduce social safety net programs and boost military and immigration enforcement spending while adding $3.3 trillion to the national debt. (Related story: “Trump risks voter blowback as ‘One Big Beautiful Bill’ advances”)

The legislation now heads to the House of Representatives for possible final approval. US President Donald J. Trump has said he wants to sign it into law by the July 4 Independence Day holiday.

“Noting that the Philippines is part of the electric vehicle (EV) supply chain, the BBB’s proposed changes may have an effect on the demand for the country’s green metals that feed into the EV supply chain in the US,” DTI said.

The US measure includes provisions terminating federal tax credits for new and used electric vehicles and restricting the eligibility for clean vehicle tax incentives.

“The DTI advises all relevant industries and stakeholders — particularly those involved in EV manufacturing, supply-chain operations, and financial services — to consider conducting an early assessment of potential impacts and prepare appropriate risk mitigation strategies,” it added.

The DTI cited Section 112002 of the House-approved version of the bill, which will terminate the tax credit of up to $7,500 that US taxpayers can claim for electric vans, sport utility vehicles, and pickup trucks with a manufacturer’s suggested retail price of $80,000.

“The tax credit is set to expire on Dec. 31, 2032. However, if BBB is passed, the incentive will be terminated by Dec. 31. Further, only manufacturers that have not sold 200,000 units of new clean vehicles can qualify for the tax credit,” it added.

The BBB will also remove the tax credit of up to $7,500 that can be claimed for clean commercial vehicles that were placed in service within the year.

Under Section 112003 of the BBB, the incentive will expire this year, with only clean commercial vehicles ordered or purchased before the expiration eligible for the credit.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the proposed removal of the incentives on EVs could impact global supply chains.

“This could slow down sales and demand for EVs in the US and would have an adverse impact on global supply chains, including those in the Philippines, which are suppliers or exporters of parts and components for these EVs,” he said in a Viber message.

However, he said that the law could also “lead to some increase in demand for internal combustion engine vehicles.”

“That could benefit supply chains worldwide, including suppliers from the Philippines,” he added.

Meanwhile, Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said the proposed BBB Act may “have indirect but strategic implications” for the Philippines.

“As the US aims to reduce reliance on China and secure its biotech supply chains, it could redirect investments and sourcing to allied countries like the Philippines through friendshoring strategies,” he said in a Viber message.

“Key Philippine sectors that may benefit include electronics, information technology-enabled services, pharma support services and chemical manufacturing,” he added.

However, he said the country should strengthen its value chain, regulatory standards and investment incentives to take advantage of opportunities.

“On the flip side, if the act leads to tighter tech and intellectual property controls, it could also limit Philippine firms’ access to certain US-led biotech partnerships or funding,” he said.

“Policy readiness, talent development, and deeper US-Philippines economic cooperation will be critical to maximize gains,” he added. — with Reuters

Del Monte Pacific’s US subsidiary files for bankruptcy, seeks buyers

July 3, 2025 | 12:10 am

Bugo cannery workers in Cagayan de Oro — DELMONTEPACIFIC.COM

By Revin Mikhael D. Ochave, Reporter

CAMPOS-LED Del Monte Pacific Ltd. (DMPL) said its United States subsidiary Del Monte Foods Holdings Ltd. (DMFHL) has filed for Chapter 11 bankruptcy and is seeking buyers for its assets.

DMFHL and certain subsidiaries began voluntary Chapter 11 proceedings in the bankruptcy court for the District of New Jersey on July 1, granting access to $912.5 million in financing to support their operations, DMPL said in a local regulatory filing on Wednesday.

DMFHL’s board will also pursue a sale of “all or substantially all” of the assets of the company and certain subsidiaries as part of the Chapter 11 proceedings.

On May 5, a special shareholder group formed by certain lenders of DMFHL appointed a majority of directors to the boards of DMFHL and its subsidiaries following a litigation settlement. The lenders also secured 25% of DMPL’s equity in DMFHL.

“The newly constituted board of DMFHL has determined to pursue a value-maximizing sale process. The company has been advised that DMFHL has entered into a restructuring support agreement (RSA) with a group of its term lenders holding certain of DMFHL’s secured debt,” DMPL said.

“The RSA contemplates a sale of all or substantially all of the assets of DMFHL and certain of its subsidiaries, among other strategic transactions to be implemented through Chapter 11 proceedings in the US,” it added.

Chapter 11 is a US legal process for a company’s financial and operational restructuring. It allows the debtor to formulate a plan to address existing liabilities and related obligations, during which creditor debt collection efforts are generally halted by a moratorium for the duration of the proceedings.

DMFHL’s subsidiaries outside the US are not included in the Chapter 11 proceedings and continue their operations.

“The company has been advised that this filing is part of DMFHL’s overall strategic plan aimed at maximizing value for its business operations and those of its subsidiaries,” DMPL said.

“Throughout this process, DMFHL and its operating subsidiary, Del Monte Foods Corp. II Inc. (DMFC), will continue normal business operations,” it added.

In a separate disclosure, DMPL said it is also studying the effect of deconsolidating DMFHL from the group.

“The company is in the process of assessing the financial impact that its deconsolidation of DMFHL might have on the DMPL Group. Updates on such financial implications will be provided in due course,” DMPL said.

As of end-January, DMPL’s net investment value in DMFHL was $579 million, while DMPL and its affiliates have $169 million in net receivables from DMFHL and its subsidiaries.

“The value to be impaired will be determined after the audit. Updates on the financial impacts will be provided in due course,” DMPL said.

DMPL said its Asian and international businesses, led by subsidiary Del Monte Philippines Inc. (DMPI), continue to perform well with resilient consumer demand, supported by a strong and stable supply chain.

“The company is confident in its ability to maintain uninterrupted business operations going forward,” DMPL said.

AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message that it is still possible for DMPL to meet its goal of financial recovery for fiscal years (FY) 2026 and 2027 amid the bankruptcy filing of its US business.

“It’s possible. The US business has long been a drag on DMPL, while their Philippine business has been doing quite well by comparison. For sure we’ll see a huge impairment loss for DMPL once the audit is finalized, but this still depends on how much they will get for their stake in the company after the creditors take their share,” he said.

“DMFHL has been losing money since before DMPL acquired it in 2014, and DMPL has largely failed to turn it around since. They acquired it for $1.675 billion in 2014 and, based on their filing, the investment is now worth only $579 million,” he added.

Unicapital Securities, Inc. Research Head Wendy B. Estacio-Cruz said in a Viber message that the possible deconsolidation of DMPL’s US business could reshape the company’s financial outlook.

“While it removes a major revenue stream, it may also remove a segment that’s been consistently dragging down overall performance, potentially improving the profitability of the remaining core businesses in Asia,” she said.

“If executed well, this move could accelerate DMPL’s path to profitability by FY26–27. However, near-term risks remain due to restructuring uncertainties,” she added.

For the third quarter of its fiscal year ending April, DMPL said its net loss widened by 24% to $35.9 million as DMFC’s net loss increased to $40.5 million during the period due to higher costs and increased interest expenses.

DMPL shares rose by 0.63% or two centavos to P3.17 per share on Wednesday.

1...245246247...13,137 Page 246 of 13,137