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Navigating tariff headwinds: Positioning the Philippines for opportunity

PHILIPPINE STAR/ EDD GUMBAN

On April 2, United States President Donald Trump announced he would impose a 10% baseline tax on imports from all countries, aside from higher tariffs that would be slapped on countries running trade surpluses with the United States. The higher tariffs were scheduled to take effect April 9, or what he called “Liberation Day.”

There are exemptions from the US reciprocal tariff, including steel and aluminum articles, auto parts, copper, pharmaceuticals, semiconductors, lumber articles, bullion, energy, and certain minerals that are not available in the US.

In the succeeding days, the tariff announcement caused global markets to react swiftly and violently, with losses amounting to trillions of dollars in market capitalization.

The tariff rates differed from country to country. In Asia, for instance, Cambodia was slapped with an added 49% rate, Vietnam with 46%, Thailand with 36%, Indonesia with 32%, and Malaysia with 24%. China was initially charged an additional 34% tariff.

After Liberation Day arrived, however, Mr. Trump announced a 90-day tariff pause for countries that did not make retaliatory moves, with only the 10% universal rate staying in effect. However, on China’s goods, he raised the tariff to 125%.

On April 11, President Trump added smartphones and computers to the list of exempted goods.

For Philippine exports, a 17% tariff will apply.

For decades, the US has been the Philippines’ top export market. It has been a key economic partner. According to the Philippine Statistics Authority (PSA), total exports to the US in 2024 amounted to $12.12 billion, which accounted for almost 17% of the country’s total exports.

Thus, with higher tariffs, it is reasonable to expect that Philippine exports may face declining demand due to increased costs, which could have ripple effects on domestic jobs and trade growth.

But not all prospects are gloomy for the Philippines. While there are economic risks in the sense that Philippine products would now be less competitive in the US market, there could also be opportunities in the form of new trade and investment prospects. With the government’s ongoing efforts to enhance the country’s investment climate, coupled with the relatively lower tariff rates imposed by the US on imports from the Philippines, the nation remains well-positioned to become a competitive investment destination in the region.

First, the Philippines could establish itself as an attractive alternative destination for businesses looking to diversify their supply chains. The Philippines stands to benefit from its strategic geopolitical position, as it may capitalize on its stable and allied status in the Indo-Pacific region to attract companies seeking to diversify their supply chain and lower risks from the impacts of the trade war of the US with China.

Specifically, the creation of the Luzon Economic Corridor will allow the Philippines to promote Luzon as a premier trade and logistics hub by leveraging the corridor spanning Subic-Clark-Manila-Batangas as the main gateway for these investors. The country’s skilled workforce, geostrategic location, and natural resources further strengthen the Philippines’ appeal as a manufacturing and investment hub.

Second, aside from being an investment destination, the Philippines could also serve as a transshipment hub, allowing businesses from countries facing higher tariffs to route their exports through the Philippines and take advantage of its lower tariff rates.

Third, we can even improve our economic relations with the US. The imposition of reciprocal tariffs may provide strategic opportunities for the country to improve its bilateral economic relationship with the US in terms of trade and investment, noting that the Philippines is among the least hit among key exporters to the US.

By leveraging the Philippines’ long-established alliance with the US, the Philippine government can push for the establishment of a US-Philippines Free Trade Agreement to secure better trade terms and tariff-free access for key exports. In exchange, the Philippines can diversify and expand trade with the US by importing more key commodities to balance the trade flows and enhance bilateral trade reciprocally.

Fourth, we can at the same time look inward and take advantage of the chance to bolster our domestic economy. By expanding local production and manufacturing, we can lessen our dependence on imports and attract investments aimed at serving the expanding domestic market. With its sizable consumer base, the Philippines has the potential to drive economic growth internally.

With the recent passage of the CREATE MORE Act (Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy), along with other ongoing initiatives such as the institutionalization of the “Green Lanes” executive order which aims to stimulate economic growth and cultivating a conducive environment for investors to thrive, these developments position the country strategically ahead within the region.

There is no doubt that President Trump’s imposition of tariffs has caused alarm and uncertainty in the Philippines and across the globe. The next few weeks and months will reveal how the rest of the world will cope with such a disruption. We have to be prepared for risks. But looking at risks also necessitate exploring ways to mitigate these risks, unearthing opportunities and making the most of them. It is here we learn adaptation and resilience.

 

Victor Andres “Dindo” C. Manhit is the president of the Stratbase ADR Institute.

Crypto-based offerings to boost adoption of digital assets in PHL

INCREASED cryptocurrency-based offerings by Philippine financial institutions could drive growth in Filipinos’ adoption of digital assets, the top official of a global blockchain and Web3 software company said.

“Increased access to regulated crypto investment options — similar to spot Bitcoin ETFs (exchange-traded funds) in the US — could attract more Filipino investors who are hesitant due to concerns about scams and volatility,” Joseph Lubin, Consensys founder and chief executive officer and Ethereum co-founder, said in an e-mail interview.

“If investment houses provide secure, professionally managed crypto funds or ETFs, they could attract Filipinos looking for a more trustworthy and accessible way to invest in digital assets,” he said.

Consensys’ second global opinion survey on crypto and Web3 released in December showed that 96% of Filipino respondents said they were familiar with cryptocurrencies, but only 46% said they fully understand how they work.

Mr. Lubin said this highlights a major knowledge gap.

“As more financial institutions offer crypto investment products and global discussions around regulation and real-world use cases continue, educational efforts and adoption in the Philippines may follow,” he said.

The company’s survey showed that 54% of Filipinos who have heard of cryptocurrencies have purchased them, driven by curiosity. This shows that there is demand for crypto in the country, Mr. Lubin noted.

However, wider adoption has been hampered by concerns about scams, market volatility, and lack of knowledge on where to start, he added.

“While other countries share similar concerns, smarter regulatory frameworks and financial literacy initiatives in markets like Singapore and South Korea may be helping mitigate risks,” he said.

“Overall, while the Philippines has strong crypto interest and ownership, deeper education, security measures, and regulatory clarity are needed to match the adoption levels seen in other leading regional markets.”

Mr. Lubin said the development of a regulatory framework for crypto, blockchain and other Web3 technologies must take into account how fast these are evolving.

“At Consensys, we believe that having a fit-for-purpose regulatory scheme necessitates flexibility to adapt to new developments quickly, which in turn requires close cooperation between regulators and stakeholders throughout the ecosystem. The first step in crafting effective regulatory frameworks is to understand that the risk profile of Web3 is different, demanding a novel regulatory response,” he said.

“To reduce risk, regulators have a choice: undermine the new technology by reintroducing intermediaries so that traditional regulatory schemes can be applied in full, or create new solutions to effectively mitigate blockchain’s novel risks.”

Some examples that the Philippines can look at include the United States, Singapore, and Japan, which have implemented strict security and anti-fraud regulations for crypto exchanges and introduced regulated crypto investment products, Mr. Lubin said.

He added that wider adoption of cryptocurrencies, blockchain and Web3 technologies could improve financial inclusion in the Philippines, as these could provide alternatives to traditional banking tools and services.

“There is also an opportunity in the area of remittances. Blockchain-powered payments can offer faster and cheaper cross-border transactions compared to traditional remittance services, benefiting overseas Filipino workers looking to send money to their families in the country,” Mr. Lubin said.

“Crypto promotes financial inclusion. Blockchain technology enables faster, cheaper, and more secure cross-border transactions compared to traditional remittance services, making it a crucial tool for supporting the high volume of payments sent by Filipino overseas workers.”

With more Filipinos shifting to digital transactions, consumers can benefit from blockchain technologies’ transparency and security, as these eliminate the need for intermediaries, reducing costs as a result, Mr. Lubin added.

“The goal is to create a future where individuals don’t need to trust institutions to access and control their own assets… As awareness of decentralized technologies expands and regulatory frameworks develop, the Philippines and other Southeast Asian economies are well-positioned to benefit from blockchain’s transformative potential.” — Aaron Michael C. Sy

J-pop star Kenshin Kamimura pleads not guilty to indecent assault in Hong Kong

JUNSEI MOTOJIMA (L) and Kenshin Kamimura in the TV show Our Youth.

HONG KONG — J-pop star Kenshin Kamimura pleaded not guilty to a charge of indecent assault before a Hong Kong court on Tuesday, after he was accused of assaulting a woman at a Hong Kong restaurant in March.

Mr. Kamimura, 25, is a former member of the six-member boy group ONE N’ ONLY but was fired by his management agency, Stardust Promotion in March over “the discovery of a serious compliance violation,” according to the company statement.

Mr. Kamimura’s hands were shaking before the hearing began, and he broke out in tears after loudly pleading “not guilty” at the West Kowloon Magistrates’ Court.

When Magistrate Li Chi-ho asked if he needed a break, he said he could continue, adding “no problem” in Hong Kong’s Cantonese language.

Under Hong Kong law, indecent assault carries a maximum penalty of up to 10 years imprisonment. Reuters was unable to reach Mr. Kamimura’s lawyers for comment.

Dozens of his fans started queuing up outside the court early in the morning to get passes to enter the courtroom. Some said they had flown in from Japan and China to see the star, known for his role in the Japanese drama Our Youth.

A judiciary clerk said they have given away over 170 passes.

Mr. Kamimura was granted bail, with the next hearing scheduled for July 30 and expected to last three days.

According to the charge sheet seen by Reuters, he was charged with indecently assaulting a woman in a restaurant in the city’s busy Mong Kok district on March 2 this year. The charge sheet did not provide further details. — Reuters

Cebu Pacific says Q1 passengers up 26.36%

CEBUPACIFICAIR.COM

CEBU PACIFIC expects passenger growth in the second quarter after carrying over six million passengers in the first three months of the year, the airline said on Tuesday.

For the January-to-March period, Cebu Pacific, operated by Cebu Air, Inc., logged a total of 6.95 million passengers, up by 26.36% from 5.50 million passengers in the first quarter of 2024.

“Despite the shift of Easter from March of last year to April this year, the traffic growth and seat load factors remained robust for both domestic and international networks,” Cebu Pacific President and Chief Commercial Officer Alexander G. Lao said in a media release on Tuesday.

“For the first quarter, overall, we have registered increases in load factor while growing capacity by approximately 25%. This reinforces our positive outlook for the second quarter of this year.”

Both its domestic and international passenger volumes saw an increase for the quarter, with domestic passenger volume growing by 27.9% to 5.18 million, while its international passenger count climbed by 21.8% to 1.77 million.

The airline said it ended the first quarter with a seating capacity of 8.19 million, up by 24.8%, while its seat load factor, or capacity utilization of available seats, reached 84.9% for the first quarter.

Last month alone, the budget airline recorded a total of 2.21 million passengers, marking an increase of 18.82% from 1.86 million passengers in the comparable period a year ago.

To date, Cebu Pacific operates in 37 domestic and 26 international destinations in Asia, Australia, and the Middle East.

Earlier this year, Cebu Pacific announced several route launches, including direct flights between Ho Chi Minh City and Cebu by the second quarter, expansion of its Clark hub, and the launch of direct flights between Iloilo and Bangkok.

At the local bourse on Tuesday, shares in Cebu Air closed 10 centavos, or 0.29% higher, at P34 apiece. — Ashley Erika O. Jose

Taiwan is under siege with or without tariffs

JACK BRIND-UNSPLASH

IT MAKES SENSE to think that Donald Trump’s trade war is increasing the risk for a Chinese invasion of Taiwan because it adds pressure on Beijing. But the self-ruled island isn’t more vulnerable because of the tariffs. It’s already under siege from the mainland on multiple fronts.

Taipei has long been a geopolitical flashpoint. It now risks losing its hard-won autonomy if it doesn’t confront these threats with greater urgency. That means strengthening military capabilities, passing a long overdue defense budget, and preparing citizens for a possibly prolonged period of mainland aggression. It has already invested in missile defense systems and asymmetric weaponry, and extended the conscription service. But progress on these deterrence measures has been uneven.

Some analysts have speculated whether Trump’s tariffs will accelerate China’s timeline for unification because Washington is distracted. Beijing has been ramping up military activities. It has sent a surging number of warplanes and coast guard vessels around the island. Strategists have referred to this campaign as an “anaconda strategy,” a way to strangle Taiwan militarily, economically, diplomatically, and psychologically, eventually forcing unification without ever having to formally declare war. 

Beijing is clearly preparing for confrontation. The People’s Liberation Army is now the world’s largest maritime fighting force and continues to modernize rapidly. Recent video footage of new barges suggests it may have developed the capacity to land tens of thousands of troops and heavy equipment on Taiwan’s shores. Capability doesn’t equal intent, but the images are a reminder of Beijing’s ambitions. Still, most military experts agree the most likely scenario would be a quarantine or a blockade, not a full-scale amphibious assault, which is believed to be beyond the PLA’s reach for now. Taiwanese intelligence says 2027 could be a potentialt target date for an attack.

As destructive as this defense buildup is, the mainland also is weakening the island from within. In the last year, prosecutions for espionage, particularly among military personnel, have soared in Taiwan. And Beijing is using AI-created disinformation campaigns to divide Taiwanese society as well as targeting undersea communications cables, cutting off digital infrastructure to isolate the island. These operations fit with the idea of “winning without fighting,” as outlined by the ancient philosopher of war Sun Tzu, and favored by President Xi Jinping.

China is likely to exploit Trump’s unpredictability to its advantage, noted Xin Qiang, an academic at Fudan University, on a recent Asia Society podcast before tariffs went into effect. Beijing sees Trump as transactional, which makes him dangerous but also possibly useful, he suggests.

Taiwan’s own politics may also be giving China the upper hand. The ruling Democratic Progressive Party is gridlocked with the opposition Kuomintang party in parliament, delaying critical defense legislation. The uncertain environment and America’s lack of security guarantees could play directly into Xi’s hands, convincing the Taiwanese they may be safer in Beijing’s embrace rather than Washington’s.

The 90-day reprieve from the tariffs on America’s trading partners is a chance for negotiation. President Lai Ching-te is hoping the deal he’s offering Trump will be enough to not just secure trade relief, but guarantees security ties too.

Relying on that alone is dangerous. It’s time for Lai to use his political skills to get opposition parties to come to an agreement, and not allow infighting to derail security planning. In the absence of a consistent American-led effort to deter China, Taipei needs to prioritize self-reliance, and work to pass the defense budget.

Lessons from countries like Finland and Sweden, which spent decades preparing for the threat of Russian aggression, are instructive. Taiwan is already implementing a whole-of-society resilience approach, including citizen training and civil defense measures. This will help in preparations for a potential attack. In the past, these efforts were downplayed out of fear of spooking citizens. Acknowledging the urgency now is progress, and should continue.

Taipei should also counter Beijing’s AI disinformation campaigns in a coordinated manner, and educate the population. Some of this is already happening, but boosting media literacy campaigns and public awareness programs could help bring home the scale of the threat.

Trump’s transactional diplomacy threatens to isolate the island just when solidarity around its future is urgently needed. Beijing will exploit any cracks. Depending simply on the whims of the administration in the White House for protection means gambling with its own future. Taiwan may be under siege, but it’s not without options to cement its own security.

BLOOMBERG OPINION

Philippines’ Academic Freedom Index score nears 40-year low

The Philippines saw its score drop to an almost four-decade low of 0.624 (out of 1, 1 is best) in the 2025 update of the Academic Freedom Index. The report, released by the researchers from Germany’s Friedrich-Alexander-Universität Erlangen-Nürnberg and the V-Dem Institute, evaluates academic freedom worldwide across key indicators, including institutional autonomy, campus integrity, and freedom of expression in academia and culture. Despite the decline, the country ranked sixth-highest among its peers in East and Southeast Asia.

Philippines’ Academic Freedom Index score nears 40-year low

Moody’s upgrades PNB’s credit rating

MOODY’S RATINGS on Tuesday upgraded Philippine National Bank’s (PNB) credit ratings, assigning stable outlooks, on the back of its improved profitability and strong capital position.

The debt watcher raised PNB’s long-term (LT) foreign-currency (FC) and local-currency (LC) deposit ratings to Baa2 from Baa3, it said in a statement.

Moody’s also upgraded the bank’s short-term (ST) foreign- and local-currency deposit ratings to P-2 from P-3, its baseline credit assessment (BCA) and adjusted BCA to baa3 from ba1, its FC senior unsecured rating to Baa2 from Baa3 and its FC senior unsecured medium-term note program rating to (P)Baa2 from (P)Baa3.

“At the same time, we have affirmed the bank’s Baa2/P-2 LT and ST FC and LC counterparty risk ratings as well as its Baa2(cr)/P-2(cr) LT and ST counterparty risk assessment,” it said. “We have also changed the rating outlooks, where applicable, to stable from positive.”

“The upgrade of the bank’s deposit ratings and BCA is driven by PNB’s sustained improvement in core profitability, robust capital and solid liquidity, which will provide sufficient buffers against the bank’s modest asset quality. PNB’s Baa2 deposit ratings incorporate our expectation of a high likelihood of support from the Government of Philippines (Baa2 stable), which results in a one-notch uplift from the bank’s baa3 BCA,” Moody’s said.

It noted the bank’s improved return on assets last year versus in the last five years, as well as its sustained wide net interest margin (NIM) amid its management of funding costs and higher interest earnings.

“Furthermore, the decrease in credit costs supported the increase in overall profitability. We expect the bank’s profitability to range around 1.7%-1.8% in 2025, with NIM expansion underpinned by the bank’s large proportion of loans with higher rates fixed for three to five years, growth of higher yielding retail, small and medium enterprise-sized, and commercial loans, as well as its low funding costs. We expect credit costs to increase modestly, but remain low, supporting the bank’s profits,” Moody’s said.

“As of end-2024, the bank’s tangible common equity to risk-weighted assets ratio was at 20.8%, the highest among its rated-peers in the Philippines. We expect PNB’s capitalization to decrease over the next 3 years as growth accelerates, but remain robust at above 16%,” it added.

The debt watcher added that PNB has a robust liquidity and funding profile, as well as a “strong franchise value in remittances.” It also has a large current and savings account deposit base, which brings down its funding costs.

“These strengths balance the bank’s modest asset quality, which deteriorated over the pandemic due to large, concentrated exposures. However, PNB’s problem loan ratio, measured by stage 3 loans as a percentage of gross loans, decreased to 6.7% as of end-2024 from the peak of 11.9% in 2021, driven by upgrades and write-offs,” Moody’s said.

“At the same time, PNB’s problem loan formation has improved while related party exposures and concentration in large exposures have decreased, reflecting better credit underwriting standards and risk management. Additionally, seasoning risks from the aggressive growth of its retail loans are partially mitigated by the fact the bank largely targets borrowers who are within its ecosystem and bulk of the growth will stem from the secured auto and mortgage loans, reducing risk of credit cost spikes.”

Moody’s said it is unlikely to upgrade PNB’s deposit and senior unsecured ratings in the near term as they are already at par with the Philippines’ sovereign credit rating.

“However, we could upgrade PNB’s BCA if (1) its asset quality strengthens to the problem loan ratio level of its baa2 BCA domestic rated-peers, which stood at around 2-3% in 2024, with credit costs remaining below 1%, such that (2) its return on tangible assets is sustained at above 1.5%,” it said.

“The upgrade would also depend on qualitative improvements in governance, including the bank’s risk management of its retail loan growth, as well as appetite for large, concentrated exposures and related-party transactions.”

Meanwhile, significant deterioration in PNB’s asset quality, profitability, and capitalization could lead the debt watcher to downgrade the bank’s deposit and senior unsecured ratings and BCA. — BVR

GCash IPO could leapfrog Philippine startups’ growth

By Beatriz Marie D. Cruz, Reporter

THE much-awaited initial public offering (IPO) of digital wallet provider GCash could lay the groundwork for investment opportunities for Philippine startups, according to analysts.

“We need to be able to encourage founders and investors that there is an exit potential, that their investment of their time or capital in that startup can lead to an outcome that’s great for everyone,” Paulo Campos III, founding managing general partner at Kaya Founders, told BusinessWorld on the sidelines of Sinigang Valley’s BUILD Startup Festival.

The electronic wallet platform is one of the most highly anticipated IPOs this year, with the company targeting an $8-billion (P454.4 billion) valuation once it goes public.

Its parent company, Globe Fintech Innovations, Inc. (Mynt), is the first and only company to reach “double-unicorn status” after raising $300 million in a funding round in 2021, lifting its valuation to more than $2 billion.

Rene Cuartero, founder and chief executive officer (CEO) at venture capital firm AHG Lab, said the GCash IPO could be a “game-changer” for the country’s expanding startup ecosystem.

“The IPO will show proof of a pathway for a lot of our startups in the Philippines towards listing in the market,” he said on the sidelines of the event. “It will also be an excellent test case on what regulations might need to be adjusted in order to accommodate large and smaller tech companies that want to [list].”

It takes about 10 years for a startup to be ready for an IPO. If successful, this would allow startups to access a larger pool of investors and expand further, making it a more established entity in the market.

Since its launch in 2004, GCash has had more than 94 million registered users. Its popularity grew as more people adopted digital payments during the coronavirus pandemic.

Its services are available in 16 markets including the US, UK, United Arab Emirates, Australia, Canada, Germany, Hong Kong, Italy, Japan, Saudi Arabia, Kuwait, Qatar, Singapore, South Korea, Spain and Taiwan.

The GCash IPO would also increase the Philippines’ attractiveness to investors as an emerging tech hub, said Oscar Enrico A. Reyes, Jr., president and CEO at G-Xchange, Inc., the company that operates GCash.

“It’s very important that it becomes a successful IPO,” he told BusinessWorld. “And if that happens, the whole investment community starts seeing the Philippines as a potential tech hub.”

“This is something that’s homegrown, and if we can be one of the biggest and most successful kind of startup that is publicly [listed,] then hopefully it encourages more investors to look for other opportunities here in the Philippines,” he added.

Sean ‘Diddy’ Combs pleads not guilty to expanded sex trafficking indictment

Sean “Diddy” Combs — WIKIPEDIA

NEW YORK – Sean “Diddy” Combs pleaded not guilty on Monday to an expanded federal indictment charging the hip-hop mogul with five criminal counts, including racketeering and sex trafficking.

Mr. Combs, 55, entered his plea to the new charges at a hearing before US District Judge Arun Subramanian in Manhattan. He had previously pleaded not guilty to an earlier three-count indictment.

In a statement earlier this month provided by Mr. Combs’ media representatives, his lawyers said, “These are not new allegations or new accusers. These are the same individuals, former long-term girlfriends, who were involved in consensual relationships.”

Jury selection for Mr. Combs’ trial remains scheduled for May 5, with opening statements due to begin on May 12.

Marc Agnifilo, one of Mr. Combs’ lawyers, said the defense may seek a two-week delay to opening statements to allow it to review e-mails it wants an alleged victim to turn over.

Mr. Subramanian said that if the defense wants a delay, it must submit a formal request within two days.

“We are a freight train moving towards trial,” the judge said.

Prosecutors with the Manhattan US Attorney’s office say Mr. Combs used his business empire to sexually abuse women between 2004 and 2024. The alleged abuse included having women take part in recorded sexual performances called “freak offs” with male sex workers, who were sometimes transported across state lines.

Mr. Combs has been jailed in Brooklyn since September. He also faces dozens of civil lawsuits by women and men who accused him of sexual abuse.

Mr. Combs’ legal team has forcefully denied that he did anything wrong.

Mr. Agnifilo has said Mr. Combs never forced anyone to engage in sexual acts against their will, and that the freak offs were consensual sexual activity.

Also known during his career as Puff Daddy and P. Diddy, Mr. Combs founded Bad Boy Records and is credited with helping turn rappers and R&B singers such as Mary J. Blige, Faith Evans, Notorious B.I.G., and Usher into stars in the 1990s and 2000s.

But prosecutors have said his success concealed a dark side, citing incidents, including in March 2016 when Mr. Combs was captured on a surveillance video kicking, dragging, and throwing a vase at a woman trying to leave a Los Angeles hotel.

CNN last year broadcast a surveillance video showing Combs striking and dragging his former girlfriend Casandra Ventura, an R&B singer known as Cassie.

Mr. Combs apologized following the broadcast. Mr. Agnifilo has said the video was not evidence of sex trafficking, and that Mr. Combs and Ms. Ventura had “a toxic, loving 11-year relationship.” — Reuters

Transmission rates up in March

PHILIPPINE STAR/MICHAEL VARCAS

TRANSMISSION RATES for the March billing period, reflected in the April electricity bill, increased by 11.51% due to higher ancillary services (AS) charges, the National Grid Corp. of the Philippines (NGCP) said.

AS charges rose by 16.05% to P0.8094 per kilowatt-hour (kWh) in March, up from P0.6975 per kWh in February, NGCP said in a statement on Tuesday.

The company said the latest charges include the third tranche of the settlement for the remaining 70% of AS costs from the reserve market for the March billing period, the recovery of which was deferred by the Energy Regulatory Commission.

AS charges reflect the cost of power sourced from the reserve market and providers holding bilateral contracts with NGCP, who step in when supply from long-term providers is insufficient.

Meanwhile, transmission wheeling rates, or the charges for NGCP’s primary service of delivering power, slightly increased by 4.81% to P0.5505 per kWh, up from P0.5252 per kWh.

“For the April 2025 bills of end consumers, NGCP charges only 55 centavos per kWh for the delivery of its services. The bulk of transmission charges is for AS, which is remitted directly to AS providers,” the company said.

Transmission charges reflect the cost of delivering electricity from power generators to the distribution system. — Sheldeen Joy Talavera

Time’s up! Supreme Court clarifies time limit for prosecuting crimes governed by summary procedure

PHILIPPINE STAR/JOHN RYAN BALDEMOR

An accused can no longer be convicted of a crime, even if found guilty thereof, if the crime has already prescribed. The prescription of the crime totally extinguishes the liability of the accused. Hence, it is important to know when the prescriptive period shall commence to run and when it shall be interrupted.

In the recent case of People v. Consebido (G.R. No. 258563, April 2), the Supreme Court clarified the rule on the interruption of the prescriptive period for offenses falling within the scope of the 1991 Revised Rules on Summary Procedure, which are now governed by the 2022 Rules on Expedited Procedures in the First Level Courts.

The criminal cases governed by the Rules on Summary Procedure, as stated in the Rules on Expedited Procedures, are: 1.) violations of traffic laws, rules, and regulations; 2.) violations of the rental law; 3.) violations of municipal or city ordinances; 4.) violation of Batas Pambansa Blg. 22 or the Bouncing Checks Law; and, 5.) all other criminal cases where the penalty prescribed by law for the offense charged is imprisonment not exceeding one year, or a fine not exceeding P50,000, or both, provided that in offenses involving damage to property through criminal negligence, the Rules govern where the imposable fine does not exceed P150,000.

Under the Revised Penal Code, the prescriptive period of a crime shall be interrupted by the filing of the complaint or information. The prevailing rule is that prescription is interrupted when the preliminary investigation against the accused is commenced, such as when a complaint is filed with the prosecutor’s office.

The rationale for this rule is that aggrieved parties should not be allowed to suffer unnecessarily simply because of circumstances beyond their control, like the accused’s delaying tactics or the delay and inefficiency of the investigating agencies.

However, in the 2023 cases of Republic v. Desierto (G.R. No. 136506, Jan. 16, 2023) and Corpus, Jr. v. People (G.R. No. 255740, Aug. 16, 2023), it was held that for offenses governed by the Rules on Summary Procedure, the running of the prescriptive period shall be interrupted only upon the institution of judicial proceedings, and not the commencement of the preliminary investigation by the investigating agencies.

This ruling is anchored in Section 11 of the Rules on Summary Procedure, which provides that criminal cases falling within its scope are commenced either by complaint or information filed in court.

The Supreme Court acknowledged that, under this interpretation, a crime may prescribe even if the complaint is filed seasonably with the prosecutor’s office if, intentionally or not, the prosecutor’s office delays the institution of the necessary judicial proceedings until it is too late. However, according to the Court, this possibility should not justify a misreading of the applicable rules beyond their obvious intent as reasonably deduced from their plain language.

Thus, in Corpus, Jr. v. People, the criminal case was dismissed on the ground of prescription of the offense even if it was not due to the failure of the complainant, but that of the prosecutor’s office, to timely file the information in court.

However, in People v. Consebido, the Supreme Court En Banc abandoned its rulings in Republic v. Desierto and Corpus, Jr. v. People and clarified that the time limit or prescriptive period for prosecuting crimes, including those under the Rules on Expedited Procedures, stops running once a complaint is filed with the prosecutor’s office, and not when the case reaches the court.

It recognized that, while criminal cases should ideally be resolved promptly, delays are sometimes unavoidable. Therefore, the State, as the offended party, should not be disadvantaged by delays in the preliminary investigations, even in criminal cases under summary procedure.

The Supreme Court further clarified that the ruling in People v. Consebido on the interruption of the prescriptive period for prosecuting crimes will apply prospectively. n

The views and opinions expressed in this article are those of the author. This article is for general informational and educational purposes only and not offered as and does not constitute legal advice or legal opinion.

 

April Jane S. Sillada is an associate of the Litigation and Dispute Resolution department of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).

(632) 8830-8000

assillada@accralaw.com

Bold policy moves ‘in any direction’ wouldn’t be prudent, says Fed’s Bostic

ATLANTA Federal Reserve Bank President Raphael Bostic said on Monday the uncertainty surrounding the Trump administration’s tariff and other policies has put the economy into a “big pause,” and he suggested the US central bank should stay on hold until there is more clarity.

“The specific place that the economy will land depends critically on the details of where policy lands,” Mr. Bostic said, speaking at Emory University. “And because we don’t know that now, again, that’s another reason why I feel like moving too boldly with our policy in any direction wouldn’t be prudent at the moment.”

Tariffs are likely to push up on prices, Mr. Bostic said, meaning that it will take longer than he had earlier thought, perhaps until 2027, to get inflation back down to the Fed’s 2% goal. At the same time, economic growth will likely slow, with gross domestic product growing more than 1% this year, less than half the recent pace, he said.

Bostic did not say whether he still believes the Fed will cut interest rates once this year, the view he had expressed in March.

Since then, US President Donald J. Trump has announced tariffs on dozens of countries, and then proceeded to roll back some of the new tariffs temporarily even as he ratcheted up import levies on China, which has retaliated with big tariffs of its own.

The result, analysts say, is that tariffs on US imports now average out at about 25%, about tenfold what they were when Mr. Trump took office in January.

It is unclear if tariffs will remain there. Trump on Monday, in his latest shift, floated possible exemptions to his auto tariffs, even as the administration opened investigations into pharmaceutical and chip imports, a move that could presage fresh tariffs.

“I think the fog has just gotten really, really thick,” Mr. Bostic said. “The economy is in a big pause position and we’ll just have to see sort of how things evolve.” — Reuters

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