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Licensing, certification seen as bottlenecks to hospital expansion

PHILSTAR FILE PHOTO

THE Private Sector Advisory Council (PSAC) said hospital licensing and physical facility standards need to be reviewed to accelerate the establishment of new hospitals and healthcare facilities, thereby easing the hospital bed shortage.

“The council recommends a shift to outcome-based regulations, which would streamline hospital renewal processes and promote network-based healthcare models for better resource distribution,” the PSAC said in a statement over the weekend.

“This reform is crucial, as the country faces a hospital bed deficit amid increasing demand,” it added.

According to the PSAC, the Philippines needs to add 240,000 hospital beds this year to meet demand.

“The Philippines, as of 2020, had over 110,000 beds — 45% government and 55% private,” it said in an e-mail on Monday.

Citing the World Health Organization recommendations, the PSAC said that the ratio of hospital beds per 1,000 population should be 3.0.

In the Philippines, the hospital beds per 1,000 population ratio is only 1.0. It is 2.2 in the National Capital Region but 0.5 in Mimaropa.

The PSAC also supported plans to expand community pharmacies and allow licensed pharmacists to oversee multiple pharmacies amid a shortage of license holders.

“A regulatory sandbox approach is being explored to allow licensed pharmacists to oversee multiple pharmacies remotely, leveraging telepharmacy services and enhancing the role of pharmacy assistants,” the PSAC said, estimating the shortage at 27,500 pharmacists.

The PSAC also advocated for fast-track approvals of 14 essential medicines that target diseases like diabetes, hypertension, and various cancers to provide relief to patients by reducing drug prices. — Justine Irish D. Tabile

Agri trade deficit narrows 2.8% to $1 billion in Jan.

PHILSTAR FILE PHOTO

THE deficit in the trade of agricultural goods in January narrowed 2.8% year on year to $1 billion, according to the Philippine Statistics Authority (PSA).

Agricultural exports in January rose to $715.25 million from $538.68 million a year earlier, the PSA said.

Agricultural exports accounted for only 29.4% of two-way agricultural trade, which was valued at $2.43 billion for the month. Exports of farm goods  accounted for 11.2% of total exports.

The PSA said agricultural imports rose 9.4% to $1.72 billion, or 15.0% of all imports in January.

The PSA said the $2.43 billion total for agriculture trade rose 15.4% year on year, accelerating from 10.6% a year earlier.

The trade deficit narrowed by 10.7% year on year in December but had risen 8.1% in January 2024.

The PSA said exports of animal, vegetable, or microbial fats and oils and their cleavage products, prepared edible fats, and animal or vegetable waxes were valued at $263.87 million, accounting for 36.9% of all agricultural exports.

Agricultural shipments to members of the Association of Southeast Asian Nations (ASEAN) in January hit $118.19 million, with Malaysia accounting for $76.56 million or 65.6% of the total.

The Netherlands accounted for $67.86 million or 49.9% of the Philippines’ agricultural exports to the European Union (EU). It bought agricultural goods worth $136.13 million from the Philippines.

The PSA said cereals accounted for 19.1% or $328.02 million of all agricultural imports in January.

It said Vietnam accounted for $192.16 million or 29.1% of agricultural imports from ASEAN.

The top agricultural products imported from ASEAN were animal, vegetable, microbial fats and oils and their cleavage products, prepared edible fats, animal or vegetable waxes, cereals, and miscellaneous edible preparations.

Among EU members, Spain was the Philippines’ top supplier of agricultural commodities, with imports valued at $32.62 million.

The top agricultural commodities imported from the EU were meat and edible meat offal, dairy produce, eggs, natural honey and edible products of animal origin. — Kyle Aristophere T. Atienza

Turboprop transfer scheduled for March 30 subject to review — MIAA

BW FILE PHOTO

THE Manila International Airport Authority (MIAA) said the decision to transfer turpoprop aircraft away from Ninoy Aquino International Airport (NAIA) could still be reviewed by the Department of Transportation (DoTr) given the turnover in membership of the committee allocating airport slots.

MIAA General Manager Eric Jose C. Ines told reporters on the sidelines of a briefing on Monday that the Manila Slot Coordination Committee, which decided to transfer about 30% of turboprop operations from NAIA to Clark, has since changed in composition.

“There are now new members of the committee,” Mr. Ines said when asked about the possibility of revisiting the committee’s decision.

Members of the Manila Slot Coordination Committee are the DoTr; the MIAA; the Civil Aviation Authority of the Philippines (CAAP), the Civil Aeronautics Board (CAB) and the New NAIA Infra Corp. (NNIC), the private-sector operator of NAIA.

The NNIC has floated plans to transfer the operations of turboprop aircraft away from NAIA to help decongest the airport.

By March 30, budget carrier Cebu Pacific is scheduled to start relocating turboprop aircraft operations to Clark International Airport.

The changes will not be abrupt and do not necessarily mean that all turboprop aircraft will be moved to other airports, the DoTr has said, citing the need to maximize NAIA slots by using high-capacity aircraft as much as possible.

Luzon International Premiere Airport Development (LIPAD) Corp., the operator of Clark International Airport, has revised its passenger volume projection for 2025 to incorporate growth projections resulting from the transfer of turboprop operations.

LIPAD is expecting between 3.3 million and 3.4 million passengers this year, upgrading from the previous estimate of 3 million. — Ashley Erika O. Jose

New contracts signed with over 95% of John Hay homeowners

CAMP JOHN HAY — BW FILE PHOTO

THE Bases Conversion and Development Authority (BCDA) said over 95% of sub-lessees holding agreements with former Camp John Hay operator  CJH Development Corp.’s (CJHDevCo) have signed new contracts.

“Even before our takeover, we studied their cases. As of today, more than 95% of these homeowners have signed contracts with us,” BCDA President and Chief Executive Officer Joshua M. Bingcang said at the Money Talks with Cathy Yang program on One News Channel.

“They were having fears that their leases might end because their expectation is up to 2046. But their new contracts (take the lease period) beyond 2046, to 2050 or beyond. We’re giving them a fresh start of 25 years plus another 25,” he added.

He said the new BCDA contracts involve over 100 homeowners.

“As for the golf members, many of them have also begun to enjoy playing back again on the golf course. It’s being managed right now by the MVP group,” he added.

CJHDevCo Chairman Robert John L. Sobrepeña on Friday said numerous homeowners were locked out of their homes following the reversion of the Camp John Hay property to the BCDA in January.

According to the CJHDevCo, 417 condotel owners, 159 estate lot owners, and 2,500 golf club members were affected.

Mr. Sobrepeña said the company met with unit owners last week to explain the situation. It was attended by 90 homeowners on-site, while 35 participated online.

“Our message to them was, you are all still the owners of those units. They may have forcibly and illegally taken over possession, but you are still the owners,” he said.

According to the company, six petitions have been filed for quieting of title, with recovery of possession filed on behalf of three Forest Lodge, two Manor, and one country estate lot owners.

“These cases have yet to be raffled off, so we still don’t know to which court or branch will hear these cases. There were also unit owners who filed Affidavits of Third Party Claim with Regional Trial Court branch 6, the court that issued the notice to vacate, but we just don’t know the exact number as of this time,” it added.

In a letter dated Jan. 27, 60 private unit owners and investors of The Forest Lodge, The Manor, Forest Estates, Country Homes, Gold Estates, and Forest Cabin in Camp John Hay wrote to President Ferdinand R. Marcos, Jr. asking for help in recovering their investments.

Specifically, the unit owners asked to be allowed to remain in their units and for BCDA to engage in dialogue with them to find common ground that will benefit all the parties.

P1.4-BILLION PAYMENT
The BCDA president reiterated that the government’s original contract with CJHDevCo ran only for 25 years.

“That is up for renewal. So any renewal must be agreed upon. It should have ended in 2021 or 2022. The arbitration ruling happened sometime in 2015, and so it has dragged on until the Supreme Court decided last year with clear finality that they uphold the arbitral ruling,” he said.

He said that under the arbitral ruling, CJHDevCo must return the property and all the improvements to it, while the government will have to pay rentals totaling P1.4 billion, which it is yet to pay.

The BCDA was able to take over the Camp John Hay property after the Office of the Baguio City Sheriff served the notice to vacate to CJHDevCo following the Supreme Court order.

“We are willing to pay. We have put the money in an escrow account. It’s just that we are waiting for the court, the sheriff, to finish its job in executing this order from the Supreme Court,” he said.

“I think we will be concluding earlier, before the month ends. I think for the homeowners, there are only less than 20 left. For the hotel unit owners, we are also studying the arrangement with them,” he added.

According to Mr. Sobrepeña, the government must honor the rights of the homeowners.

“We just want their rights respected. These are people who invested in a public-private partnership (PPP) project in the ’90s,” he told reporters on Friday.

“Just honor the rights of the third parties. Whether you pay us the P1.4 billion, it’s not that material to me. Whether I get it or not, that’s not my issue anymore; my issue is the third parties,” he added.

CAMP JOHN HAY MASTER PLAN
Meanwhile, Mr. Bingcang said the BCDA received five proposals to update the master plan of the John Hay Special Economic Zone on Friday.

“It’s a good number, and some of them are from international companies. So we will be updating the master plan for Camp John Hay because the original master plan is circa 1990,” he said.

“At that time, there were no sustainable development goals or environmental, social, and governance (goals). So we’re including this kind of development in the new master plan of John Hay to make sure the environment is protected at all times,” he added.

He said that most of the investors that expressed interest in investing in Camp John Hay are engaged in tourism-related development.

“We have big developers who have already visited our site. It just shows that they are ready to partner with the government. And some of these are the big partners that we have in Bonifacio Global City and in Clark,” he said.

“We have local investors, we have Koreans, and we even have Japanese who are studying the mass transport system in Camp John Hay,” he added.

Earlier this year, BCDA said that it expects P10 billion worth of investment to come to Camp John Hay. — Justine Irish D. Tabile

Gov’t agencies’ 2024 cash utilization rate 99%

BW FILE PHOTO

THE cash utilization rate posted by government agencies was 99% at the end of 2024, the Department of Budget and Management (DBM) said.

The DBM reported that the National Government, local governments and government-owned firms used P4.83 trillion or 99% of the notices of cash allocation (NCAs) issued to them. The year-earlier rate had been 98%.

An NCA is a cash authority issued by the DBM to central, regional and provincial offices and operating units through government banks to cover the cash requirements of the agencies.

The remaining unused NCAs totaled P72.06 billion at the end of the year.

Line departments used 98% of their allotments, equivalent to P3.65 trillion of the P3.72 trillion NCAs issued.

In 2024, the departments of Interior and Local Government, Labor and Employment, Public Works and Highways, Social Welfare and Development and the Judiciary used 100% of their NCAs.

The Commission on Elections, Office of the Ombudsman and Commission on Human Rights also fully utilized their funds.

The departments of Human Settlements and Urban Development and Migrant Workers posted the lowest utilization rates of 67% and 82% respectively.

Budgetary support to government-owned companies was 99% used, while the corresponding rate for local government units was 100%.

In 2024, government spending grew 7.2%, the Philippine Statistics Authority said.

President Ferdinand R. Marcos, Jr. in December signed the P6.352-trillion national budget for 2025, with education being allocated P1.055 trillion, followed by public works with P1.007 trillion. — Aubrey Rose A. Inosante

Foreign mineral processors studying PHL market

REUTERS

FOUR foreign mineral processors have expressed interest in operating facilities in the Philippines, according to the Board of Investments (BoI).

In a statement on Monday, the Boi said it led a mission to the Prospectors & Developers Association of Canada 2025 to promote the Philippines’ critical minerals.

“A highlight of the mission was the delegation’s engagement with four global leaders in mining and mineral processing, as well as technical service providers for the mining, metallurgical, energy, and infrastructure industries,” BoI said.

These companies “expressed strong interest in the Philippines’ potential, signaling promising opportunities that will boost the country’s development in the critical minerals industry and its value chain,” it added.

During the event, the Philippine delegation also met with Canadian government agencies to explore possible joint activities and cooperation.

“BoI executives met with Canada’s Minister of Export Promotion, International Trade, and Economic Development, Mary Ng, who reaffirmed commitment to mutual cooperation and trade diversification,” the BoI said.

“She emphasized the potential for collaboration in critical minerals production, processing, and sustainability, highlighting opportunities for shared benefits and long-term partnership,” it added.

The delegation also met with representatives from Sudbury, Ontario’s Economic Development Office and the Ontario Centre of Innovation.

On March 7, the BoI organized a roundtable discussion aimed at highlighting potential mining and mineral processing projects.

BoI Executive Director Ma. Corazon Halili-Dichosa said the Philippines has around 9 million hectares with mineral potential, with only less than 3% covered by mining permits.

“As such, investment opportunities in mining, mineral processing, and related services across the supply chain abound in the country,” she said.

“The government is determined to tap the high potential of our mineral resources and have it contribute more to our economic development,” she added.

Asked what areas could be explored after the approval of the 50-year mining permit freeze in Palawan, she said that Palawan is only one of the three known nickel mining clusters, together with Surigao and Zambales.

“We still have lots of areas that can be explored,” she said.

“Identification of areas will be done with the Department of Environment and Natural Resources. If you check the Mines and Geosciences Bureau website, exploration areas are spread in various regions of the country,” she added. — Justine Irish D. Tabile

NFA to upgrade storage network for P10 billion

REUTERS

THE National Food Authority (NFA) said on Monday that its rice storage, milling, and drying facilities will be modernized in a P10-billion program.

The funding will consist of P5 billion from last year’s budget and P5 billion from this year.

The NFA said P1.5 billion will be dedicated to repairing current warehouses to ensure rice quality.

Some P3.5 billion will go towards adding 800,000 metric tons (MT) of storage capacity by next year.

“This expanded capacity will help us address the current issue of warehouse space,” NFA Administrator Larry D. Lacon said.

The NFA’s current storage capacity is 1 million MT, with full utilization hindered by variations in rice quality and age of the inventory.

“The new warehouses, combined with updated milling and drying equipment, will maximize storage efficiency,” the NFA said.

It said the P5 billion set aside for mills, dryers, and silos will increase rice recovery rates, and ultimately improve farmer incomes.

“With the new drying facilities, farmers will be able to sell palay with higher moisture content, removing the burden of drying it themselves,” the NFA said.

“This change is expected to stabilize prices for both producers and consumers by ensuring consistent rice quality.”

The NFA said warehouse repairs are underway, including facilities in Malolos, Bulacan, which is capable of storing up to 120,000 50-kilo bags of rice, to get it ready to receive grain during the peak of the harvest in April.

Several plots of land have been donated to the NFA or made available via usufruct, making possible the construction of new warehouses in Mindanao and Luzon.

The modernization projects are expected to be operational by the end of next year, in time for the dry season harvest of 2027.

The full upgrade program will include silos in major rice-producing areas such as the Cagayan Valley and Central Luzon, allowing the NFA to store rice for up to two years, far longer than the usual six months to one year for bagged rice. — Kyle Aristophere T. Atienza

Los Angeles firm planning $17-M soundstage investment in Clark

STOCK PHOTO | Image by Marko Bukorovic from Pixabay

LOS ANGELES movie equipment company Birns & Sawyer is planning to set up a soundstage for $17 million in New Clark City, the Department of Trade and Industry (DTI) said.

In a statement on Monday, the DTI said it was briefed on the company’s initial plans for the soundstage in the Filinvest property in New Clark City.

“Furthermore, the company plans to develop two additional soundstages in other key cities across the Philippines, bringing the total investment pipeline to approximately $50 million,” it added.

Birns & Sawyer disclosed plans to work with schools and universities to train students.

The company has ongoing cinematography workshops and co-production grants and operates an Asia-Pacific office in Quezon City.

“The meeting also explored co-production opportunities between Filipino and Hollywood producers, as well as the possibility of providing grants and equipment support to filmmakers,” the DTI said. — Justine Irish D. Tabile

Review of factual issues no longer allowed in reconsideration of denied VAT refund claims

In any social or professional collaboration, there may arise instances wherein there is a misinterpretation of certain facts, and in such cases, reconvening and circling back can prove to be one of the most efficient solutions. Much like any relationship, the one between the taxpayer and the BIR also revolves around effective communication.

However, in Revenue Regulations (RR) No. 08-2025, a review of questions of fact was not included as an option for taxpayers whose claims for VAT refunds were denied. In terms of factual issues, the taxpayer will no longer be provided with a chance to clear up any misinterpretations of the BIR, if any.

GENERAL OVERVIEW OF AN INPUT TAX REFUND
Tax refunds are considered tax exemptions and are construed strictly against the taxpayer. Based on the Tax Code, a tax refund must conform to certain rules, procedures, and pertinent documentary requirements for compliance by the taxpayer. Some of these include filing with the proper venue, adhering to the period prescribed by law, and submission of complete documentary requirements. Applications for tax refunds may be filed either with the Revenue District Office (RDO) or the Large Taxpayers District Office (LT) of the Bureau of Internal Revenue (BIR).

The application for VAT refund must be filed within two years from the close of the taxable quarter when the sale was made. The BIR is then given a 90-day period to process and assess the VAT refund upon receipt of the application. The results of BIR’s review can be approval, partial or full denial, or in some cases, not acted upon.

Prior to the issuance of RR No. 08-2025, if the application is denied, the taxpayer may file a Request for Reconsideration within 15 days from receipt of the full or partial denial. The Commissioner must decide on the request for reconsideration within 15 days from receipt thereof. Failure to file a request for reconsideration within the 15-day period renders the decision final.

In case of full or partial denial of the request for reconsideration, or failure on the part of the Commissioner to act on the application for refund or request for reconsideration within the periods prescribed above, the taxpayer affected may, within 30 days from the receipt of the decision denying the request for reconsideration, or after the expiration of the 90-day period to decide on the application for refund, or after the lapse of the 15-day period to decide on the request for reconsideration in cases where no action is taken by the Commissioner on the request for reconsideration, appeal the decision with the Court of Tax Appeals.

A more in-depth discussion on the particularities of the tax refund may be found here: https://tinyurl.com/299cl8p8 and https://tinyurl.com/28qrquhm.

REVENUE REGULATIONS 08-2025
On Feb. 27, the BIR issued RR 08-2025 regarding Procedures in the Resolution of Requests for Reconsideration on the Denial of Claim for Refund on Value-Added Tax, among others. The RR covers all requests for reconsideration involving applications for refund filed on or after April 1, 2025.

WHAT IS A REQUEST FOR RECONSIDERATION?
Under Section 3 of RR 08-2025, a request for reconsideration is a plea to re-evaluate a pure question of law on a given set of facts or circumstances based on previously submitted documents and arguments, without the need for the introduction of new or additional documents.

To further understand the definition above, we must also distinguish what is a question of law and a question of fact. The same regulation provided definitions therein under the same section are as follows:

1. Question of Law – A question of law arises when there is doubt as to what the law is on a certain state of facts. For a question to be one of law, it must not involve an examination of the probative value of the evidence presented by the applicant. The resolution of the issue must rest solely on what the law provides on the given set of circumstances.

2. Question of Fact – Involves factual determination and appreciation of facts based on documentary evidence; it exists when the doubt or difference arises as to the truth or falsehood of alleged facts.

Based on the foregoing, the request for reconsideration may only deal with legal dilemmas revolving around a certain set of facts, evidence, and circumstances.

THE REQUEST FOR RECONSIDERATION ONLY COVERS QUESTIONS OF LAW.
Section 4 of RR 08-2025 lays down guidelines for both the taxpayer-claimant and the BIR in the processing of requests for reconsideration. Things of note are those stated under paragraphs 2 and 3 of Section 4, which state:

2. All requests for reconsideration on full or partial denial of a claim for refund should be limited to questions of law. Any issue/s relating to factual determination or appreciation should have been threshed out during the initial processing of the claim for refund and contained in the notice of full or partial denial. Consequently, any factual issue raised in the request for reconsideration shall no longer be entertained.

3. Only the documents previously attached to the taxpayer-claimant’s application for a tax refund relevant to the issue raised may be submitted with the request for reconsideration. The introduction of new evidence/documents, as well as questions of law already addressed in the Notice of Full or Partial Denial, shall not be allowed during the request for reconsideration.

The aforementioned paragraphs do not consider questions of fact that may be tackled under the request for reconsideration. As discussed above, questions of fact involve factual determination and appreciation of facts wherein a disparity of interpretation may arise between the understanding of the Processing Office and the intent of the taxpayer-claimant.

The term “request for reconsideration,” for assessment purposes, is also defined under Section 3.1.4 of RR No. 12-99, as amended by RR 18-2013, which defines it as “a plea of re-evaluation of an assessment on the basis of existing records without the need for additional evidence. It may involve both a question of fact or of law or both.”

It should be noted that after comparing the two definitions, the request for reconsideration for input tax refund purposes does not cover questions of fact and solely relies on the appreciation of the processing office of the documents submitted by the taxpayer-claimant. The taxpayer-claimant will no longer be afforded a chance to explain the documents or information submitted in instances wherein the Processing Office has a different appreciation of the documents or factual information given.

LINGERING QUESTIONS
With the foregoing, does this mean that the decision of the BIR on the factual issues becomes final and executory since the same is not allowed to be the subject matter of the request for reconsideration? If yes, what are the remedies of the taxpayer if he wishes to challenge the denial based on factual issues? Should the taxpayer have the option to skip the request for reconsideration process and directly go to the CTA if he wishes to challenge the denial of BIR based on factual issues?   

Nonetheless, we are one with the BIR in providing the taxpayer-claimants with much clearer guidelines in instances wherein the applications for its claim for refund are denied due to legal issues. We hope though that there can also be similar guidelines to resolve concerns regarding denial based on factual determination or appreciation of the documents and information submitted to BIR.

 

Kim M. Manuel is an associate of the Tax Advisory & Compliance Practice Area of P&A Grant Thornton.

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PSEi surges to 6,300 level on BSP rate cut hopes

BW FILE PHOTO

PHILIPPINE SHARES rallied for a sixth consecutive day on Monday as investors expect the Bangko Sentral ng Pilipinas (BSP) to resume its easing cycle as early as next month amid the positive outlook for inflation, especially with the implementation of measures to bring down food prices.

The benchmark Philippine Stock Exchange index (PSEi) rose by 0.99% or 62.48 points to end at 6,360.77, while the broader all shares index rose by 0.66% or 24.72 points to 3,748.92.

This was the PSEi’s highest close in nearly seven weeks or since it finished at 6,378.86 on Jan. 23.

“The local bourse rose, still on hopes that the Bangko Sentral ng Pilipinas will further ease its monetary policies following the significant slowdown in our inflation last February. Robust 2024 corporate results also helped in sustaining the market’s climb,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“Philippine share continued the recovery, getting a boost from the better-than-expected CPI (consumer price index) reading and strengthening peso. Investors also came into the market also US equities bounced back on Friday,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Headline inflation sharply eased to 2.1% in February from 2.9% in January and 3.4% a year ago, marking the slowest inflation print in five months, the government reported last week.

This was also below the BSP’s 2.2%-3% forecast for the month and the 2.6% median estimate in a BusinessWorld poll of 18 analysts.

The February print brought average inflation to 2.5% in the first two months, well within the central bank’s 2-4% target.

The Monetary Board will review policy on April 3. Analysts said slower inflation last month will allow the BSP to resume its easing cycle following its surprise pause at the February review.

“The PSEi gained for the sixth straight trading day after the MSRP (maximum suggested retail price) for pork took effect today as part of the non-monetary measures to further bring down pork prices and overall inflation,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort added in a Viber message.

All sectoral indices closed in the green on Monday. Mining and oil surged by 3.73% or 320.65 points to 8,895.44; property increased by 1.41% or 32.25 points to 2,306.61; industrials rose by 1.22% or 107.76 points to 8,881.43; services went up by 0.95% or 19.94 points to 2,101.71; holding firms climbed by 0.79% or 41.81 points to 5,293.01; and financials inched up by 0.64% or 15.26 points to 2,378.73.

Value turnover rose to P6.41 billion on Monday with 627.42 million shares exchanged from the P6.33 billion with 528.06 million issues traded on Friday.

Advancers beat decliners, 122 versus 76, while 48 names were unchanged.

Net foreign buying surged to P1.41 billion on Monday from P158.85 million on Friday. — R.M.D. Ochave

Peso declines on weak data, Trump tariff jitters

IRFAN HAKIMUNSPLASH

THE PESO weakened anew against the dollar on Monday, halting a five-day rally, after net inflows of foreign direct investments (FDI) fell to their lowest in 11 years in December and lingering concerns over the Trump administration’s trade policies.

The local unit closed at P57.41 per dollar on Monday, weakening by 20.4 centavos from its P57.206 finish on Friday, Bankers Association of the Philippines data showed.

The peso opened Monday’s trading session weaker at P57.25 against the dollar. Its intraday best was at P57.20, while its worst showing was at P57.43 versus the greenback.

Dollars exchanged sank to $815.69 million from $1.84 billion on Friday.

Weak FDI data released on Monday caused the peso to decline against the dollar, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Net inflows of FDI fell to its lowest level in over a decade in December, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed. FDI net inflows slumped by 85.2% to $110 million in December from $743 million in the same month in 2023.

This was the lowest net inflow in 11 years or since the $102.16 million in December 2013.

Still, for the full year, FDI net inflows edged up to $8.93 billion in 2024 from $8.925 billion in 2023, halting two consecutive years of annual declines. This was just a tad below the BSP’s forecast of $9 billion in net FDI inflows for 2024.

“The peso closed lower on the back of a strong dollar on risk-off sentiment due to the tariff war and fears of an economic slowdown after the lower-than-expected NFP (nonfarm payrolls) last Friday,” a trader added in a phone interview.

The dollar was trading near its lowest level in four months against major currencies on Monday as concerns over a global trade war troubled investors, lifting safe havens, Reuters reported.

Markets have been fixated on trade tensions as US President Donald J. Trump slapped tariffs on top trading partners only to delay some of them for a month amid growing signs and fears of a US economic slowdown.

That has led to investors losing faith in the US economy which has been outperforming its peers. On currency futures markets, investors have slashed net long dollar positions to $15.3 billion from a nine-year high of $35.2 billion in January.

The dollar index, which measures the US currency against six others, was last at 103.83 on Monday, stuck near a four-month low touched last week.

The dollar fell more than 3% last week against major rivals, clocking its weakest weekly performance since November 2022 as investors fret about tariffs and its impact on the economy.

Adding to investor jitters, Mr. Trump in a Fox News interview on Sunday declined to predict whether the US could face a recession amid stock market concerns about his tariff actions on Mexico, Canada and China.

Investors were also digesting data from Friday that showed US job growth picked up in February, but cracks are emerging in the once-resilient labor market amid a chaotic trade policy. Nonfarm payrolls increased by 151,000 jobs last month after rising by a downwardly revised 125,000 in January, the Labor department’s Bureau of Labor Statistics said. Economists polled by Reuters had forecast payrolls advancing by 160,000 jobs after a previously reported 143,000 gain in January.

For Tuesday, the trader expects the peso to move between P57.10 and P57.50 per dollar, while Mr. Ricafort sees it ranging from P57.30 and P57.50. — Aaron Michael C. Sy with Reuters

Philippines rejects China’s ‘shadow play’ remarks on South China Sea

BW FILE PHOTO

By Adrian H. Halili, Reporter

THE PHILIPPINES on Monday rejected China’s allegation that their sea dispute was mere “shadow play,” insisting that it is a sovereign state whose actions are driven entirely by national interest and not at the direction of other countries.

“The Philippines disagrees with the recent remarks of Chinese Foreign Minister Wang Yi characterizing the developments and incidents in the South China Sea as mere theatre staged under the direction of other countries,” the Department of Foreign Affairs (DFA) said in a statement.

“For every move in the sea by the Philippines, there is a screenplay written by external forces; the show is livestreamed by western media and the plot is invariably to smear China,” Mr. Wang told a news briefing in Beijing on March 7. “People are not interested in watching the same performance again and again.”

The Chinese minister added that “those acting as others’ chess pieces are bound to be discarded.”

China claims other countries have worsened tensions in the South China Sea, where its coast guard and that of the Philippines have clashed several times.

“No creative analogy or play of words will mask the real issue, which is China’s refusal to abide by international law,” the DFA said, citing China’s continued disregard of the 1982 United Nations Convention on the Law of the Sea and a 2016 ruling by a United Nations-backed tribunal in the Hague that voided China’s claims for being illegal.

It added that China’s dismissal of the rule-based international order has affected Filipino communities in the area, citing it neighbor’s “illegal, coercive, aggressive and deceptive behavior at sea.”

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

Rommel C. Banlaoi, chairman of the Philippine Institute for Peace, Violence and Terrorism Research, said the two countries should rebuild confidence and promote mutual trust to de-escalate in the waterway.

“The DFA statement merely articulates the official position of the current government on the perennial issue involving China in the West Philippine Sea,” he said in a Viber message, referring to areas of the South China Sea within the Philippines’ exclusive economic zone.

He added that such statement would have no bearing on the peaceful settlement of disputes between the two countries, “which can only be achieved through serious and sincere talks, consultations and negotiations.”

“What (China) is trying to do is to change the narrative by depicting us merely as a puppet of other countries, when in fact this is not the case,” Josue Raphael J. Cortez, who teaches diplomacy at De La Salle College of St. Benilde, said in a Facebook Messenger chat.

“What it is doing may be considered simply as a way to improve its optics despite continuous violations of our sovereignty and rights,” he added.

China claims more than 80% of the South China Sea, putting at odds with the Philippines, Brunei, Indonesia, Malaysia and Vietnam, which also claim parts of the waterway where more than $3 trillion of ship-borne commerce pass through yearly.

The DFA also urged other countries to be cautious and “to avoid actions and words that only contribute to tensions in the region.”

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