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FAST Logistics introduces startup accelerator program

FAST LOGISTICS GROUP said it plans to launch four startups under its newly established venture studio aimed at enhancing the country’s logistics and supply chain.

The Revv-EVODINE Venture Studio, unveiled in Cabuyao, Laguna, on Thursday, aims to support startups focused on improving operational efficiency and reducing logistics costs for businesses nationwide.

The venture studio will focus on leveraging artificial intelligence for forecasting, automation, and digital freight matching, among other innovations, FAST Logistics said in a statement.

“Through Revv-EVODINE, we are creating a platform where promising ideas evolve into real-world solutions and scalable ventures, guided by an evidence-based, outcome-driven approach,” Manuel L. Onrejas, Jr., chief executive officer (CEO) for logistics at FAST, said during the launch.

Under the program, early-stage startups will undergo a 16-week incubation, where founders will receive personalized mentorship, critical resources, and real-world testing environments from a pool of executives and venture builders.

The studio will also leverage the company’s warehouse network, transport capabilities, and best-in-class technology infrastructure to foster innovation in the country’s logistics sector.

This will allow startups to validate their technology, refine their business models, and accelerate their market readiness.

The Revv-EVODINE Studio will also incubate ideas from FAST’s internal teams, as well as those recognized during last year’s Philippine Startup Week.

The program will be led by Mark Philip Comandante, Exoasia Innovation Hub CEO and Revv-EVODINE Venture Studio president and chief operating officer.

“Revv-EVODINE ensures that startups not only develop innovative solutions but also align them with industry needs and market demands, ensuring they are market-ready and capable of driving measurable impact in the logistics sector,” Mr. Comandante said.

The Philippine startup ecosystem raised $1.12 billion in 2024, a 16% increase from the previous year, according to the latest Philippine Venture Capital Report by the Boston Consulting Group and venture capital fund Foxmont Capital Partners. — Beatriz Marie D. Cruz

How PSEi member stocks performed — April 3, 2025

Here’s a quick glance at how PSEi stocks fared on Thursday, April 3, 2025.

MBC proposes BOT model be applied to power grids

PHILSTAR FILE PHOTO

THE Makati Business Club (MBC) urged the government to apply the build-operate-transfer (BOT) model to the power grid industry to prepare the grid for the entry of renewables.

In a statement on Thursday, the MBC called for the issue of an executive order allowing BOT grid projects.

“This would allow third-party investors, whether private sector, or government-owned and -controlled corporations, to build needed transmission infrastructure, and accelerate grid development, both of which are critical to achieving reliable, affordable, renewable energy (RE),” it said.

A BOT scheme allows a project proponent to finance, construct, and operate a project for a fixed term, for later transfer to the government at the end of the period.

The MBC said that grid infrastructure is one of the main issues in achieving “reliable, affordable and renewable power.”

Under the Philippine Energy Plan, the government aims to increase the share of RE in the power generation mix to 35% by 2030 and 50% by 2040.

According to the 2024 Climatescope report by BloombergNEF, the Philippines ranked as the second-most attractive emerging market for RE investment.

However, investment remains a challenge, with the funding gap in RE estimated at $328 billion as of 2023, the MBC said, citing a study by BMI.

“Increased investments in grid infrastructure improve the development of renewable energy, and reduce long-term cost, by improving transmission efficiency. These improvements need to happen at a faster pace given the growing interest of investors in the Philippine renewable energy industry,” the MBC said.

It also called for increased public-private partnerships in off-grid solutions to help achieve 100% electrification, which is the government is targeting for 2028.

Asked to comment, Undersecretary Rowena Cristina L. Guevara said that the DoE has proposed a BOT scheme before.

Under such a setup, the grid operator, the National Grid Corp. of the Philippines (NGCP), remains the system operator and transmission network operator, she said.

Ms. Guevara said the best application of executive orders is “advancing the construction of transmission assets by RE developers or third party to assist NGCP.”

These assets will be turned over to NGCP to operate, she said.

“Timely construction of transmission assets is necessary for RE projects to connect and inject to the grid,” she told BusinessWorld.

Renewables topped the list of energy projects set to go online this year, with total capacity of over 4,800 megawatts (MW), the DoE reported as of Jan. 31.

The NGCP reported available transmission capacity at 10,260 MW, sufficient to allow the integration of new power generation assets.

Upcoming power plants can supply electricity of up to 6,573 MW to the Luzon grid, 2,281 MW to the Visayas grid, and 1,406 MW to Mindanao grid.

The NGCP had yet to reply to BusinessWorld’s request to comment at the deadline. — Sheldeen Joy Talavera

Luzon grid red alerts seen possible in June

BW FILE PHOTO

THE Luzon grid may experience yellow alerts in May and red alerts in June, with power supply margins tightening in the event of forced outages at baseload power plants, according to the Institute for Climate and Sustainable Cities (ICSC).

The ICSC said in a power outlook report that while power reserves are normal this month, supply margins on the Luzon and Visayas grids are expected to thin by June.

In its projections, the ICSC assessed the operating margins in the three main island grids based on the 2025 weekly demand, supply, and operating margin profile issued by the National Grid Corp. of the Philippines and the Department of Energy (DoE) in December.

The Luzon grid is projected to export power to the Visayas grid between March 31 and June 1, the group said. However, exports may be restricted starting early June to maintain adequate operating reserves in Luzon, when reduced generation from coal-fired plants is expected.

“This scenario is particularly relevant in June, when reduced coal generation of around 842 MW (megawatts) is unavailable could lead to potential red alerts,” said ICSC.

Because of the projected restriction in exports during the period, the Visayas grid could possibly experience yellow alerts in June due to inadequate power supply.

Among the key factors cited to maintain sufficient reserves is ensuring that committed energy projects go online as planned and to prevent unplanned outages of existing plants.

Meanwhile, the ICSC said that Mindanao can maintain sufficient reserve levels between April and June even while exporting power to Visayas.

On March 5, the first yellow alert this year was declared over the Luzon grid amid higher than expected demand combined with power plants going on forced outage.

Citing its previous analyses, ICSC said that even without the increase in demand, planned and unplanned outages of large power plants play a significant part in grid instability.

“Although elevated electricity demand during summer contributes to power supply issues experienced in these months, forced outages of baseload power plants have constantly exacerbated the situation,” said Jephraim Manansala, the ICSC’s chief data scientist and co-author of the report.

The ICSC said that the DoE should review power demand and supply outlooks “to ensure preparedness for the anticipated surge in demand.”

“Addressing these challenges is critical to ensuring a stable and resilient power system capable of supporting sustainable economic growth and development,” the group said.

Asked to comment, Assistant Secretary Mario C. Marasigan said that the DoE does not discount the possibility of yellow and red alerts during the dry season.

“As such, the DoE is closely monitoring the overall situation, not only in terms of power supply but also the condition of our transmission and distribution facilities,” he said via Viber.

He said that the department “ensures mitigating and contingency measures are in place and ready to implement, once needed by the system.”

Such measures include the timely commissioning of committed power projects and availability of interconnection facilities, as well as the readiness of Interruptible Load Program participants, he said.

Last year, the Philippines’ main grids were placed under 16 red alerts and 62 yellow alerts.

A yellow alert is declared when available supply falls below a designated safety margin, while a red alert will trigger power outages as the authorities ration power. — Sheldeen Joy Talavera

PHL 2024 GDP growth revised upwards to 5.7%

PHILIPPINE STAR/WALTER BOLLOZOS

THE economy grew by a revised 5.7% in 2024, against 5.6% as initially reported, the Philippine Statistics Authority (PSA) said on Thursday.

It said the new estimate is more in line with international reporting practices.

GDP growth in 2024 outpaced the 5.5% expansion in 2023 and had been the strongest reading since the 7.6% expansion in 2022.

The PSA also revised gross national income (GNI) growth to 7.7% in 2024 after the preliminary reading of 7.6%.

The PSA lowered the GNI for 2023 to 10.4% from the 10.5% initial estimate.

Growth in net primary income from the rest of the world was revised upwards to 26.6% in 2024 from the preliminary figure of 26.1%.

The 2023 reading was revised to 96.6% from the 97% initially reported.

There were no changes to growth in the industry sector (5.6%) and the services sector (6.7%) but the agriculture sector’s contraction in 2024 was put at -1.5%, against the -1.6% preliminary estimate.

In the fourth quarter, agriculture declined 1.6%, against the 1.8% contraction previously reported.

The industry sector’s growth, on the other hand, was upwardly revised to 4.5% from the 4.4%.

Growth of the services sector was unchanged at 6.7%.

Mining and quarrying growth was revised downwards (-4.1% from -3.4%), as were electricity, steam, water and waste management (5.7% from 6.1%) and construction (7.7% from 7.8%).

On the other hand, manufacturing growth was raised to 3.3% from 3.1%.

The following services subsectors posted stronger growth than initially reported: education (6.8% from 6.2%), other services (10.9% from 10.5%), public administration and defense (7.2% from 7%), and accommodation and food service activities (6.3% from 6.1%).

On the expenditure side, government spending grew 7.3% against the 7.2% previously reported. On the other hand, in the three months to December, growth in state spending was lowered to 9% from the 9.7% preliminary estimate.

In 2024, household spending growth was unchanged at 4.8%, and 4.7% in the fourth quarter.

In trade in goods and services, the PSA kept export and import growth unchanged at 3.4% and 4.3% respectively in 2024.

Meanwhile, the PSA lowered import growth in the fourth quarter to 2.7%, from 3.2% previously. Export growth was unchanged at 3.2% in the quarter.

Gross capital formation, the investment component of the economy was unchanged at 7.5%.

In the fourth quarter, gross capital formation growth was 5.5%, against the 4.1% preliminary estimate. — Abigail Marie P. Yraola

Digital economy growth cited as DICT priority

PHILSTAR FILE PHOTO

THE Department of Information and Communications Technology (DICT) said it sees as its priority the growth of the digital economy, while also improving the SIM (subscriber identity module) registration process.

“We’ll just continue the good work that the department’s been doing,” the department’s newly appointed Secretary, Henry R. Aguda, told reporters on the sidelines of an event on Thursday.

“Personally, I want to direct (the department) towards creating a stronger digital economy,” he said. “I have an industry development function for the digital space together with the DTI (Department of Trade and Industry and the Department of Labor (and Employment), to prepare the jobs that will be ready when those in school graduate.”

Mr. Aguda’s appointment took effect on March 20.

The DICT will also review the implementation of Republic Act No. 11934 or the SIM Registration Act, focusing particularly on registration and data privacy concerns, Mr. Aguda said.

“Like most laws that have been implemented, there are areas for improvement. So, that’s what I’m going to be working on together with our telco partners,” he noted.

Scam calls in the Philippines increased 74% to 351,699 in the first quarter of 2025, according to anti-scam application Whoscall.

The department will come up with a full lineup of key officials by the end of the month, according to Mr. Aguda.

In a March 31 memorandum, all undersecretaries, assistant secretaries, and directors were ordered to submit courtesy resignations to give the new Secretary a “free hand to perform his duties and functions.”

Mr. Aguda said this is “normal in any transition of any agency.”

“This is to allow the incoming head of agency to assess the team, where are the gaps, and how (the department can) improve its performance.”

“Give me, maybe, towards the end of the month to figure out the final (makeup) of the organization.”

He also noted that the transition will not hamper the DICT’s duties ahead of the 2025 midterm polls. — Beatriz Marie D. Cruz

PHLPost agrees to host more Kadiwa stores

THE Department of Agriculture (DA) said Philippine Postal Corp. (PHLPost) has agreed to host more stores selling subsidized produce at its locations.

In a briefing on Thursday, Postmaster General Luis D. Carlos said 61 post offices will host Kadiwa ng Pangulo stores this year, after six other locations opened last year.

“The total network is about 1,100 post offices all over. We have committed to the (DA) about 61 in Metro Manila, northwest Luzon all the way to the Visayas and the Sulu Sea,” Mr. Carlos added.

Agriculture Secretary Francisca P. Tiu Laurel, Jr. said the DA’s own target is at least 800 Kadiwa stores at PHLPost locations.

“We will scale it up together as we go along, we are hoping for at least 800,” Mr. Laurel added.

The DA’s overall goal is 1,500 Kadiwa locations by the end of 2028.

The DA and PHLPost signed a memorandum of understanding to locate Kadiwa stores in post offices to expand the Kadiwa network.

Under the agreement, the DA, through the Agribusiness and Marketing Assistance Service, will provide technical and administrative support for the operation, establishment, and monitoring of Kadiwa stores.

The department will also ensure agricultural commodities sold at these stores “meet food safety standards, delivery and storage are well managed, and guarantee that store operations do not interfere with PHLPost’s functions.”

For its part, PHLPost will provide the physical space for the stores and assist in the promotion and marketing of the program.

“The postal service will also provide suppliers with essential equipment, including tables, chairs, and tents, to ensure smooth operations,” it said.

The kadiwa program provides farm cooperatives and associations an opportunity to sell directly to consumers, maximizing their returns by cutting out middlemen. It also sells rice and farm products at much cheaper prices than in public markets. — Adrian H. Halili

Wholesale price growth unchanged in February

PHILIPPINE STAR/ MICHAEL VARCAS

PRICE GROWTH of wholesale goods remained steady in February the Philippine Statistics Authority (PSA) reported on Wednesday.

Citing preliminary data, the PSA said the general wholesale price index (GWPI) that month was unchanged at 2.9% year on year compared to January. The year-earlier growth rate had been at 2.8%.

In the first two months of the year, GWPI growth averaged 2.9%, against 3.2% a year earlier.

Rischelle Alysha T. Legaspi, economist from Oikonomia Advisory & Research, Inc., said the stabilizing GWPI could be attributed to easing inflation overall.

“While the cost of imports becomes more expensive due to depreciation, the slowdown in price rises offset depreciation effects,” Ms. Legaspi said in an e-mail.

In February, headline inflation eased to 2.1%, the slowest reading in five months, or since the 1.9% posted in September.

In the first two months, inflation averaged 2.5%, within the central bank’s 2-4% target.

The PSA noted accelerated growth in prices of crude materials, inedible except fuels (60.6% in February from 58.6% in January), chemicals including animal and vegetable oils and fats (10.1% from 9.9%), and machinery and transport equipment (1.6% from 1.3%).

Price growth in manufactured goods classified chiefly by materials slowed to 0.9% from 1.1%, while that for mineral fuels, lubricants and related materials dropped to 0.3% from 0.8% in January.

The heavily weighted food index was steady at 2.3%, as were beverages and tobacco (2.9%) and miscellaneous manufactured articles (-0.1%).

Wholesale price growth in Luzon was unchanged at 3.2% in February. A year earlier, GWPI in Luzon had been 2.6%.

In the Visayas, GWPI slowed to 1% during the period, against 1.6% in January and 6.1% in February 2024.

Price growth in Mindanao was 0.7%, against 0.6% in January and 2.5% in February 2024. — John Phoebus G. Villanueva

PHL shares drop as Trump tariffs shock markets

The lobby of the Philippine Stock Exchange in Taguig City, Sept. 30, 2020. — REUTERS

PHILIPPINE SHARES ended lower on Thursday to join other global markets that reeled following the Trump administration’s announcement of reciprocal tariffs on the US’ trading partners.

The Philippine Stock Exchange index (PSEi) fell by 1.63% or 101.95 points to close at 6,145.73, while the all shares index shed 1.09% or 40.71 points to end at 3,664.41.

“The local market was brought down this Thursday as investors dealt with the US’ latest tariff announcements, including a 17% tariff against the Philippines,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “Sentiment towards the global economy was dampened by the expected negative consequences of the US’ reciprocal tariffs.”

“Philippine shares were sold down after holding steady the last couple of trading days as markets around the world reacted to US President Donald J. Trump’s tariff rollout,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “The White House confirmed the levies would take effect immediately… though details remain unclear, fueling market uncertainty.”

World stock markets, oil prices tumbled, and investors dashed to the relative safety of bonds, gold, and the yen on Thursday, as Mr. Trump’s drastic US trade tariffs stirred widespread fears of a global recession, Reuters reported.

A new baseline 10% tariff on imported goods plus some eye-watering additional “reciprocal” tariffs on countries Mr. Trump said put high trade barriers on the US, left traders clearly rattled.

The sweeping tariffs will raise effective import taxes in the world’s largest economy to the highest levels in a century. If they do trigger recessions, central banks around the world are likely to slash interest rates which benefits bonds.

An annex to Mr. Trump’s executive order on the White House website indicates an adjusted tariff rate of 18% for the Philippines that will take effect on April 9.

Almost all sectoral indices closed lower on Thursday. Services retreated by 1.98% or 39.75 points to 1,964.65; holding firms went down by 1.76% or 90.35 points to 5,038.21; financials declined by 1.67% or 40.81 points to 2,401.56; industrials dropped by 1.13% or 99.01 points to 8,625.76; and property shed 0.92% or 20.95 points to end at 2,241.80.

Meanwhile, mining and oil climbed by 0.38% or 37.35 points to 9,660.28.

“Only two index members closed the day with gains, namely Manila Electric Co., up 1.48%, and Semirara Mining and Power Corp., up 0.56%. Puregold Price Club, Inc. was the index’s worst performer, falling 4.83% to P26.60,” Mr. Tantiangco said.

Value turnover dropped to P4.62 billion on Thursday with 1.35 billion shares exchanged from the P6.06 billion with 1.31 billion issues traded on Wednesday.

Decliners outnumbered gainers, 125 versus 71, while 54 names were unchanged.

Net foreign selling went down to P101.1 million on Thursday from P259.87 million on Wednesday. — Revin Mikhael D. Ochave with Reuters

Peso at near six-month high as recession fears pull down dollar

PHILSTAR FILE PHOTO

THE PESO surged to a near six-month high on Thursday as the dollar weakened due to global growth concerns after the Trump administration announced sweeping tariffs on imports.

The local unit closed at P57.095 per dollar on Thursday, rising by 12 centavos from its P57.215 finish on Wednesday, Bankers Association of the Philippines data showed.

This was the peso’s strongest finish in nearly six months or since it ended at P57.02 per dollar on Oct. 9, 2024.

The peso opened Thursday’s session slightly weaker at P57.25 against the dollar. Its worst showing was at P57.275, while its intraday best was at P57.06 versus the greenback.

Dollars exchanged rose to $1.26 billion on Thursday from $1.07 billion on Wednesday.

The dollar was generally weaker on Thursday as markets feared that the tariffs set to be implemented by the US could hamper global growth, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The peso appreciated significantly as the dollar suffered from growing concerns over the negative impact to the US economy from the broad-based tariffs announced by President Donald J. Trump today,” a trader said in an e-mail.

The dollar slid broadly on Thursday and the euro firmed after Mr. Trump announced harsher-than-expected tariffs against US trading partners, jolting the markets as investors sought safe havens such as the yen and Swiss franc, Reuters reported.

The highly anticipated tariff announcement sent shockwaves through markets, with global stocks sinking and investors scrambling to the safety of bonds as well as gold.

Mr. Trump said he would impose a 10% baseline tariff on all imports to the United States and higher duties on some of the country’s biggest trading partners. The tariffs will take effect on April 9 and appeared to target about 60 countries.

The new levies ratchet up a trade war that Mr. Trump kicked off on his return to the White House, rattling markets as fears grow that a full-blown trade war could trigger a sharp global economic slowdown and fuel inflation.

Mr. Trump has already imposed tariffs on aluminum, steel and autos, and has increased duties on all goods from China.

“Eye-watering tariffs on a country-by-country basis scream ‘negotiation tactic,’ which will keep markets on edge for the foreseeable future,” said Adam Hetts, global head of multi-asset and portfolio manager at Janus Henderson Investors.

“We’ve seen the administration have a surprisingly high tolerance for market pain, now the big question is how much tolerance it has for true economic pain as negotiations unfold.”

The risk-sensitive Australian dollar fell 0.49% to $0.62685, while the New Zealand dollar slipped 0.2% to $0.5733.

The yen strengthened to a three-week high against the dollar and was last up 1.3% at 147.39 per dollar, while the Swiss franc touched its strongest level in four months at 0.8754 per dollar.

Benchmark 10-year Treasury yields tumbled 15 basis points to a five-month low of 4.04% as investors braced for slower US growth, while interest rate futures priced in a higher chance of interest rate cuts in the months ahead.

Investors are worried that some US trading partners could retaliate with measures of their own, leading to higher prices.

Worries about a global trade war have intensified since Mr. Trump stepped into the White House in January, combining with a slew of weaker-than-expected US data to stoke recession fears and undermine the dollar.

The dollar index, which measures the US currency against six other units, fell to 102.98, its lowest since mid-October. The index is down more than 4% this year.

The euro rose nearly 1% to a two-week high of $1.0950, while sterling rose 0.66% to $1.3097, its strongest level in five months.

For Friday, the trader said the peso could rise further on expectations of slower Philippine headline inflation data in March.

The Philippine Statistics Authority will release March consumer price index (CPI) data on April 4 (Friday).

Headline inflation likely settled within 1.7% to 2.5% last month, the Bangko Sentral ng Pilipinas (BSP) said on Monday. If realized, this would be slower than the 3.7% inflation print in March 2024.

At the upper end of the BSP forecast, inflation likely accelerated from 2.1% in February.

The low end showed inflation may have slowed below 2% for the first time since the 1.9% print in September 2024. It could also mark the slowest inflation since 1.6% in May 2020.

A BusinessWorld poll of 18 analysts conducted last week yielded a median estimate of 2% for the March CPI.

The trader expects the peso to move between P56.95 and P57.20 per dollar on Friday, while Mr. Ricafort sees it ranging from P57 to P57.20. — A.M.C. Sy with Reuters

Philippines downplays military chief’s remarks on possible invasion of Taiwan

CHINA’S Liaoning aircraft carrier takes part in the “Joint Sword-2024B” military drills east of Taiwan in this screenshot from a handout video released by the Chinese People’s Liberation Army (PLA) Eastern Theatre Command on Oct. 14, 2024. — PLA EASTERN THEATRE COMMAND/HANDOUT VIA REUTERS

By Kenneth Christiane L. Basilio, Reporter

THE Philippine military on Wednesday said it was not preparing for war over a potential Chinese invasion of neighboring Taiwan, seeking to dispel concerns about its heightened military readiness.

Armed Forces of the Philippines (AFP) Chief of Staff Romeo S. Brawner, Jr. earlier ordered military forces in northern Philippines to “start planning for actions” in case Taiwan is invaded, a statement that stirred concerns domestically and irked Beijing.

“The guidance was not a response to an imminent threat nor a declaration of heightened alert, but rather a prudent measure to ensure readiness for potential scenarios,” the AFP said in a statement on Wednesday night. “General Brawner’s pronouncement emphasized noncombatant evacuation operation preparedness.”

“The AFP conducts continuous strategic planning to address diverse security scenarios,” it added.

The Chinese Embassy in Manila did not immediately reply to a Viber message seeking comment.

China lays claim over Taiwan, which it views as a breakaway province. It has threatened to annex the self-ruled island, by force if necessary, endangering Taiwan’s population of 23 million and threatening the world’s most advanced semiconductor factories.

The Philippine presidential palace also said the Philippines is not looking to go to war with China.

“We’re not saying when that invasion will take place, whether it will take place at all,” Executive Secretary Lucas P. Bersamin told reporters. “What is important is we will not be caught off-guard. That’s the context of General Brawner’s statement.”

“We are not going to war,” Mr. Bersamin said. “Unless they involve us, of course.”

The Chinese military on Wednesday ended its two-day war games around Taiwan, during which it held maritime blockade drills and long-range, live-fire drills surrounding the island, practice exercises meant at testing the combat readiness of China’s troops, Reuters reported.

Taiwan’s ex-Defense Minister Chiu Kuo-cheng in 2021 said China could be ready to mount a full-scale invasion of the island state by this year, while former US Indo-Pacific Commander John C. Aquilino said all indications point to the possibility of a Taiwan invasion by 2027.

Migrant Workers Secretary Hans Leo J. Cacdac told a news briefing at the palace his agency is ready to ensure the safety of overseas Filipino workers (OFW) in Taiwan.

“The Philippine government stands ready,” he said. “Under the Marcos administration, we have been meeting to assure our overseas Filipino workers and their families of their safety in Taiwan and anywhere in the world,” he added.

In a statement, Manila Economic and Cultural Office Chairperson and Resident Representative Cheloy Velicaria-Garafil said her agency and the Department of Migrant Workers are working with Taiwanese authorities in case of an escalation of conflict between Taipei and Beijing.

“There is no cause for alarm because everyone here in Taiwan is conducting business as usual,” she said. “Filipinos here in Taiwan are used to reports of China’s presence around the territory.”

Security analysts on Wednesday said US Defense Secretary Peter Brian Hegseth’s visit to Manila had likely emboldened the Philippine military to take a stronger stance about the possible invasion of Taiwan.

Concerns that Taiwan’s fall might encourage China to target the Philippines next have likely influenced the Philippine military to take a bolder stance, pushing them to strategically prepare for such a scenario, they added.

“It appears that the Philippines has come to terms with the fact that should anything happen to Taiwan, there will be repercussions on the Philippines,” Julio S. Amador III, chief executive officer at Manila-based geopolitical risk firm Amador Research Services, said in a text message.

“The Philippines and US seem to have decided that they should work more closely not only to respond to threats in the South China Sea but to link on other Chinese aggressions over other areas, like Taiwan,” he added.

AT RISK OF WAR
Mr. Hegseth last week visited Manila, the first leg of his tour in Asia, engaging with Philippine President Ferdinand R. Marcos, Jr. and Defense Secretary Gilberto C. Teodoro, Jr., and agreed to reestablish military deterrence in the region.

An invasion of Taipei would allow Beijing’s military to “focus on other areas China is interested in,” such as the South China Sea or the Benham Rise in the Pacific Ocean, said Justin Keith A. Baquisal, national security analyst at FACTS Asia.

“Taiwan has always been a key security interest for the Philippines because it acts like a strategic buffer for us,” he said in an X message.

“There is merit in the Philippines contributing to military deterrence in Taiwan, because it’s far less costly to deter China now than to allow China to invade,” Mr. Baquisal said.

The Philippine military’s participation in a possible Chinese invasion of Taiwan would likely be limited to evacuating Filipino migrant workers, said Chester B. Cabalza, founding president at Manila-based think tank International Development and Security Cooperation.

“Manila observes the ‘One China Policy’ and the military’s participation in the invasion of Taiwan would only be limited to OFWs’ (overseas Filipino workers) evacuation,” he said in a Facebook Messenger chat.

Evacuating OFWs should not be the sole job of the Philippine military, Mr. Cabalza said, adding that it should be an “inter-governmental effort.”

“Since the whole-of-government approach will be activated in case of forcible retake of Taiwan by Chinese forces, the Office of Civil Defense led by the Secretary of Defense and his counterpart from the Foreign Affairs department should execute the contingency plan for the repatriation of Filipinos in Taiwan,” he said.

The AFP chief’s statement would likely heighten tensions between the Philippines and China, Mr. Baquisal said. “Risks include further diplomatic lashing by China and a broader deterioration of bilateral relations.”

“China will take offense at anything the Philippines and the US does, it is something to be expected,” Mr. Amador said, underscoring the need for Manila and Washington to deepen their security ties.

“The Taiwan question is China’s internal affair and is at the core of China’s core interest,” Chinese Foreign Ministry spokesman Guo Jiakun told a news briefing in Beijing on Wednesday. “We urge certain people in the Philippines to refrain from making provocations and playing with fire on the Taiwan question.”

Meanwhile, a Philippine policy think-tank on Wednesday said that Mr. Brawner’s Taiwan statement puts Filipinos at risk of war.

“The statement implies a willingness to involve the Philippines in a potential armed conflict, which could jeopardize national security and the lives of millions of Filipinos,” Roland G. Simbulan, chairman of the Center for People Empowerment in Governance, said in a separate statement.

He said a military posture statement, such as Mr. Brawner telling northern Philippine military forces to prepare for a Taiwan contingency, requires legislative oversight. “This kind of posture bypasses democratic checks and balances, exposing the country to unnecessary risks.” — with John Victor D. Ordoñez

Philippines assures China potential F-16 purchase won’t harm any nation

PHILIPPINE STAR/WALTER BOLLOZOS

By John Victor D. Ordoñez, Reporter

THE potential purchase of F-16 jets by the Philippines from the US is not meant to harm the interests of any nation including China, a Philippine security official said on Thursday.

National Security Council spokesman Jonathan E. Malaya assured China the acquisition is not intended as a threat to any nation and is just part of Philippine efforts to modernize its military.

“We would like to assure the People’s Republic of China that the planned procurement of the F-16 fighter jets to the Philippine arsenal does not in any way harm the interest of any third party,” he told a news briefing.

“It is not intended for any nation. It is merely part of the Armed Forces of the Philippines Modernization Program,” he added.

At a news briefing in Beijing on Wednesday, Chinese Foreign Ministry spokesman Guo Jiakun said the Philippines’ defense and security cooperation with other countries should not “exacerbate regional tensions.”

He added that the F-16 is the most advanced fourth-generation fighter in the world and could be a “significant upgrade” to Manila’s existing arsenal, which includes 12 FA-50 fighter jets from South Korea.

The US Department of State on Tuesday approved the possible sale of F-16 jet fighters and munitions worth $5.58 billion to the Philippines, a deal that could boost the Southeast Asian nation’s air combat capabilities amid rising tensions with China.

The US government greenlit the Philippines’ request for 20 units of F-16 fighters from Lockheed Martin Corp., according to the Defense Security Cooperation Agency (DSCA), an office attached to the US Defense department.

The proposed arms deal includes missiles, bombs, radar units, backup jet engines and engineering and technical support services for the planes, the DSCA said in a statement posted on its website. It has informed the US Congress of the potential deal.

Foreign military sales by US defense manufacturers require US government approval to ensure that weapon acquisitions of other nations align with Washington’s foreign policy and security interests.

Mr. Malaya said the US government had not officially communicated the approval to the Philippines.

US Defense chief Peter Brian Hegseth met with his Philippine counterpart Gilberto Eduardo Gerardo C. Teodoro, Jr. and Philippine President Ferdinand R. Marcos, Jr. on March 28 to discuss continued cooperation on keeping the peace in the Indo-Pacific region and South China Sea.

During his visit to Manila, the US Defense chief said the US Naval Mobile Launchers with Enhanced Strike System missile system during the yearly Balikatan (shoulder-to-shoulder) joint military exercise this month.

Washington also plans to deploy an anti-ship missile system and highly capable unmanned surface vehicles, which Mr. Hegseth said would let US and Philippine forces “train together using advanced capabilities to defend the Philippines’ sovereignty.”

“Secretary Hegseth’s visit and explicit message of commitment to accelerate the progress of US-Philippine relations should translate into more tangible benefits and gains in terms of military assets, which Manila badly needs to protect its borders,” said Arjan P. Aguirre, who teaches political science at the Ateneo de Manila University.”

Manila has been at the forefront of efforts to contest Beijing’s expansive sea claim, deepening security ties with Western countries and regional allies like Japan and Australia.

More than $3 trillion worth of trade passes yearly through the South China Sea, which China claims almost in its entirety. A United Nations-backed tribunal in 2016 voided its claim for being illegal.

China has expansive claims in the South China Sea that overlap with the exclusive economic zones of Brunei, Indonesia, Malaysia, the Philippines and Vietnam.

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