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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.”

Duterte says he will yield if ICC orders his arrest over deadly war on drugs

REUTERS

FORMER Philippine President Rodrigo R. Duterte said he was ready for a possible arrest amid reports the International Criminal Court (ICC) was poised to issue a warrant over his years-long war on drugs that killed thousands.

“Assuming it’s (warrant) true, why did I do it? For myself? For my family? For you and your children, and for our nation,” the tough-talking leader told a rally in Hong Kong, justifying his deadly anti-illegal drug campaign. “If this is truly my fate in life, it’s OK, I will accept it. They can arrest me, imprison me.”

“What is my sin? I did everything in my time for peace and a peaceful life for the Filipino people,” he told the cheering crowd in Hong Kong’s downtown Southorn Stadium, appearing with his daughter, Vice-President Sara Duterte-Carpio.

The ICC has been investigating the ex-President for alleged crimes against humanity that he allegedly committed when he was Davao City mayor and during the first three years of his government, when the Philippines was still a party to the international tribunal.

Mr. Duterte, 79, unilaterally withdrew the Philippines from the ICC’s founding treaty in 2019 when it started looking into allegations of systematic extrajudicial killings.

The war on drugs was Mr. Duterte’s signature campaign policy that swept him to power in 2016 as a maverick, crime-busting mayor who delivered on promises he made during vitriolic speeches to kill thousands of drug pushers.

President Ferdinand R. Marcos, Jr.’s office said no official communication had been received from Interpol yet, but indicated that Mr. Duterte could be handed over.

“Our law enforcers are ready to follow what law dictates, if the warrant of arrest needs to be served because of a request from Interpol,” Presidential Communications Undersecretary Claire Castro told reporters.

It was not immediately clear how long Mr. Duterte would stay in China-ruled Hong Kong, which is not a party to the ICC. He was in the city to speak at a campaign rally attended by thousands of overseas Filipino workers, hoping to boost support for his senatorial candidates in the May 12 midterm elections.

An elite Hong Kong police unit for protecting VIPs was stationed near the hotel where Mr. Duterte was staying, according to a Reuters witness.

A spokesperson for China’s Foreign Ministry Commissioner’s Office in Hong Kong said they were aware of the visit and the rally had been “applied for in advance in accordance with the laws of Hong Kong.”

“It is understood that Mr. Duterte and Ms. Sarah’s visit to Hong Kong is a private holiday,” the spokesperson said.

The Hong Kong government’s security bureau and police gave no immediate response to a request for comment.

The Philippine presidential palace dismissed speculations that Mr. Duterte might evade the law by visiting Hong Kong, while appealing to his supporters to allow the legal process to take its course.

“If he believes he is innocent, I think this is the opportunity to address the accusations against him at the ICC,” Manila Rep. Joel R. Chua told reporters in Filipino. “Just because a warrant of arrest has been issued does not mean he is already guilty. This will still go through trial, and his side will be heard.”

During a congressional hearing last year into his bloody crackdown on drugs, Mr. Duterte said he was not scared of the ICC and told it to “hurry up” on its investigation.

More recently, the Philippines signaled it is ready to cooperate with the investigation in certain areas.

Philippine police reported having killed 6,200 suspected pushers in the drug war, but human rights groups have said as many as 30,000. — Kenneth Christiane L. Basilio with Reuters

PHL faces fewer storms this year; temps won’t be as hot — weather bureau

PHILSTAR FILE PHOTO

THE PHILIPPINES is likely to face 16 to 19 tropical storms this year — fewer than the usual 19 to 20 — and temperatures that will not be as hot as last year, according to the state weather bureau.

“We are expecting to have a below average number of tropical storms this year,” Ana Liza S. Solis, spokesperson for the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA), told a palace briefing in Filipino on Monday.

“If we base this on historical data over the past 65 years, we are seeing a decrease in the trend of tropical storms since usually, we get 19 to 20 on average.”

The Philippines was the most disaster-prone country for the 16th straight time last year, according to the latest World Risk Index.

Meanwhile, the PAGASA noted that while the Southeast Asian nation is still expected to experience warmer temperatures this year, these are unlikely to reach the scorching 52°C recorded last year.

“The heat last year was more intense due to a strong El Niño, with many record-breaking temperatures and high heat indexes,” Ms. Solis said.

The Presidential Communications Office earlier said it is working with the Department of Health and PAGASA to craft contingency plans for extreme heat.

PAGASA is also working on its modernization program and is seeking to acquire state-of-the art infrastructure and technologies to upgrade its weather forecasting capabilities, Ms. Solis said.

A heatwave hit the capital and other regions in April and May last year, as well as the bigger Southeast Asian region, leading to almost daily suspensions of face-to-face classes.

Heatwaves, which can last for several days, can strain health, emergency, energy and transportation services and eventually lead to food and power shortages, according to the World Health Organization website.

PAGASA considers a heat index of 42°C to 51°C in the “danger” category that increases the risk of cramps, fatigue and heat strokes. Temperatures of 33°C to 41°C are under PAGASA’s “extreme caution” category.

On Sunday, it said the hottest temperature on Monday would be 41°C in San Jose, Occidental Mindoro and Cuyo, Palawan. The weather bureau expected Metro Manila to experience a 36°C temperature.

“Our predicted maximum daytime temperature may rise toward the end of April or the first week of May,” Ms. Solis said, noting that Metro Manila might experience higher temperatures of 39.6°C to 39.8°C during those months. — John Victor D. Ordoñez

DoTr told to extend operating hours of Metro Manila trains, bus lane

PHILIPPINE STAR/WALTER BOLLOZOS

A CONGRESSMAN on Monday urged the Transportation department to extend the operating hours of the Philippine capital’s trains and bus lane as major thoroughfare Epifanio de los Santos Avenue (EDSA) is set to undergo rehabilitation this year.

In a statement, Party-list Rep. Percival V. Cendana said the Department of Transportation (DoTr) should extend the Metro Rail Transit (MRT), Light Rail Transit (LRT), and EDSA bus carousel line’s hours to accommodate commuters amid the expected heavier flow of traffic in Metro Manila.

“It is even more important now to extend the operating hours of the MRT, LRT, and now even the EDSA Bus Carousel, as the EDSA rehabilitation will surely cause severe traffic congestion,” he said in Filipino.

“Private vehicles have options, but commuters do not. They must be provided with adequate public transportation,” he added.

EDSA serves as the Philippines’ main transportation artery, surrounding its capital city Manila and passes through business hubs such as Makati City. Around 407,000 vehicles pass through the major thoroughfare daily, according to government data.

Manila was the 14th most congested city in the world, with an average travel time of 32 minutes, according to the latest edition of the TomTom Traffic Index. The index assessed cities and metropolitan areas across 62 countries by their congestion and travel times and how many hours commuters stuck in traffic have lost.

A 2018 Japan International Cooperation Agency study showed that traffic congestion in Metro Manila costs the Southeast Asian nation P3.5 billion a day. The Public Works department will start its rehabilitation works by end-March, working on the thoroughfare “one lane at a time” around-the-clock, it said in a statement published on Facebook last week.

Transportation Secretary Vivencio B. Dizon in February said he’s open to extending the operating hours of the MRT and LRT but acknowledged possible challenges in maintaining the train sets.

Metro Manila Development Authority Chairman Romando S. Artes in February said his agency has discussed a proposed five-year Comprehensive Traffic Management plan with the President Ferdinand R. Marcos, Jr. in preparation for the EDSA rehabilitation.

It includes upgrading traffic regulation and enforcement, developing a traffic management database, upgrading the traffic signal system, and improving intersections and traffic corridors. — Kenneth Christiane L. Basilio

PHL, Hungary to ink labor deal

MAX LAROCHELLE-UNSPLASH

THE PHILIPPINES and Hungary plan to ink a labor cooperation agreement before 2025 ends, the eastern European nation’s ambassador said on Monday.

Speaking during the Philippine-Hungary Friendship Week, Hungarian Ambassador to the Philippines, Titanilla Tóth, said the memorandum of understanding between the two nations is already “in the pipeline, to keep a firm legal base” with the hopes of completion before this year ends.

At present, around 13,000 overseas Filipino workers are working in Hungary, particularly in the automotive manufacturing, logistics, hospitality, and agriculture sectors.

“Filipinos are supporting our initiatives in foreign direct investment, thereby contributing to creating more jobs in Hungary, even for Hungarians,” Ms. Tóth said.

On March 11, around 3,000 jobs in Hungary in the machine operators, welders, pipefitters, hotel and restaurant, and factory sectors will be up for grabs.

Monthly salaries range from P40,000 to P60,000.

Both countries are marking 50 years of diplomatic relations in 2025. — Chloe Mari A. Hufana

PHL, Slovenia seek closer trade ties

THE PHILIPPINES and Slovenia are seeking to enhance cooperation in trade and other sectors, such as, science, nuclear energy, maritime activities, labor, and sports, the Department of Foreign Affairs (DFA) said ahead of the scheduled visit of Slovenian Foreign Minister Tanja Fajon.

DFA spokesperson Ma. Teresita C. Daza said that the Slovenian foreign minister would conduct a three-day visit to the Philippines, starting with her arrival to the country on March 10.

“Deputy Prime Minister and Minister of Foreign and European Affairs of the Republic of Slovenia, her Excellency Tanja Fajon, will be in the Philippines from March 10 to 12 for an official visit,” Ms. Daza said in a video message sent to reporters.

She added that the Slovenian minister will meet with Foreign Affairs Secretary Enrique A. Manalo on March 11, to “further enhance bilateral cooperation in priority sectors such as trade and investment, science and technology, nuclear energy, maritime cooperation, sports, and labor.”

She said that this visit marks the first time that the Slovenian Foreign Minister is visiting the Philippines.

Ms. Daza added that both envoys will discuss regional and global issues, which include the Philippines and Slovenia’s shared commitment to the rule of law and rules-based international order.

“The Foreign Minister will also formally open the Embassy of the Republic of Slovenia in Manila, the first and currently the only Slovenian mission in Southeast Asia,” she said. 

Last year, the Slovenian government opened its first embassy within the Association of Southeast Asian Nations (ASEAN) region in Manila.

Ms. Fajon, along with a delegation from the Slovenian Chamber of Commerce and Industry, is scheduled to meet with officials from the Philippine Chamber of Commerce and Industry during the Slovenia-Philippine Business Forum.

The forum is set to “promote and encourage collaborative activities among Philippine and Slovenian businesses.”

She will also deliver a lecture at the Far Eastern University during her visit to the country. — Adrian H. Halili

Gov’t probes bullet-planting scheme

TRANSPORTATION Secretary Vivencio B. Dizon on Monday asked the public to be vigilant as the agency investigates a bullet-planting scheme at the Ninoy Aquino International Airport. — PHILIPPINE STAR/MIGUEL DE GUZMAN

THE government, through the Department of Transportation (DoTr), will investigate the bullet-planting scheme at the Ninoy Aquino International Airport (NAIA), according to the Presidential Communications Office (PCO).

“The President will have this matter thoroughly investigated with the assistance of Transportation Secretary Vince Dizon (Vivencio B. Dizon),” PCO Undersecretary Claire A. Castro told a Palace briefing in Filipino on Monday.

“It is essential, especially when tourists or fellow Filipinos are victims of such incidents, that hte President won’t allow this to happen.”

A March 6 Facebook post went viral after a 69-year-old Filipina complained about an airport security officer supposedly found an amulet made out of an empty bullet in her luggage before a flight to Vietnam.

The bullet planting scheme issue started in 2015 after at least 30 cases were recorded of airport security officers allegedly targeting overseas Filipino workers.

“Accountability is necessary, and if someone is found responsible after a thorough investigation, they must face the consequences,” Ms. Castro said.

Meanwhile, the DoTr has ordered the termination of three airport personnel involved in the March 6 incident. 

“We are announcing the termination of all the people in the OTS (Office for Transportation Security) who were involved in this incident. The appropriate investigation will be conducted, and the proper administrative charges will be filed after the investigations against the three personnel,” Transportation Secretary Dizon said in a media briefing on Monday.

DoTr-OTS is in charge of security screening which includes x-ray baggage inspections.

Mr. Dizon said the Transportation department would also review the procedures and protocols for screening and security protocols at the airport.

The DoTr said the investigation of the incident is still ongoing but pointed out the lapses of airport personnel as physical inspection of luggage should only be conducted at the baggage screening area.

In a statement on Monday, New NAIA Infra Corp. (NNIC) said it had immediately coordinated with OTS and reviewed CCTV footage related to the case.

NNIC said it is now working with the OTS to reinforce security monitoring, proper screening procedures, and to ensure transparent security operations at the airport.

“NNIC remains committed to working with the OTS and other authorities to provide a secure and seamless airport experience,” NNIC said.

Further, the DoTr is also aiming to set up a hotline the public may contact to report similar incidents and other irregularities at the airport. — John Victor D. Ordoñez and Ashley Erika O. Jose

DICT undersecretary named OIC

PAUL JOSEPH V. MERCADO — DICT.GOV.PH

DEPARTMENT of Information and Communications Technology (DICT) Undersecretary Paul Joseph V. Mercado has been named officer-in-charge (OIC) of the agency after Ivan John E. Uy resigned from the agency’s top post, according to the Presidential Communications Office (PCO).

PCO Undersecretary Claire A. Castro confirmed the appointment to reporters via Viber.

She told a separate news briefing on Monday that Mr. Uy did not disclose the reason behind Mr. Uy’s resignation.

Mr. Uy was appointed head of the DICT in June 2022. Among his initiatives was the SIM Card Registration Act, a law designed to curb spam calls and texts.

His tenure also focused on the expansion of the Free Public Internet Access Program to over 16,000 active sites and the drafting of the National Cybersecurity Plan. — John Victor D. Ordoñez

MIAA expects passenger volume to grow by up to 30%

Passengers are seen at the Ninoy Aquino International Airport (NAIA) Terminal 3, July 25, 2024. — PHILIPPINE STAR/RYAN BALDEMOR

THE Manila International Airport Authority (MIAA) expects passenger volume to grow by up to 30% for this year,  driven by expected travel demand.

“Give and take about 20-30% growth,” MIAA General Manager Eric Jose C. Ines told reporters on the sidelines of an event on Monday.

In 2024, the Ninoy Aquino International Airport posted a passenger volume of 50.26 million 2024, 10.9% higher than the 2023 level and 4.9% higher than the 47.90 million posted in the last full pre-pandemic year of 2019.

Domestic passenger traffic was 26.89 million, up 8.1%. International passenger traffic rose 14.4% to 23.37 million.

Aircraft movements — the sum of takeoffs and landings — amounted to 293,427 last year, up 8.3%.

MIAA is also expecting to see passenger growth during the Holy Week, Mr. Ines said, noting that it logged four million passengers for the two months to February of the year. — Ashley Erika O. Jose

Admin did not abandon OVP — Palace

VICE-PRESIDENT SARA DUTERTE-CARPIO — FACEBOOK.COM/MAYORINDAYSARADUTERTEOFFICIAL

THE PRESIDENTIAL Communications Office (PCO) on Monday countered Vice-President Sara Duterte-Carpio’s claim that the Marcos administration has abandoned her office, arguing the agency was given opportunities to justify its request for more funding this year.

This comes after the Vice President, who was impeached by the House of Representatives and faces an impeachment trial before the Senate, accused the government of abandoning her office at an event for overseas Filipino workers in Hong Kong.

“The government did not abandon Office of the Vice-President,” PCO Undersecretary Claire A. Castro told a news briefing.

“There was no obstruction in providing the appropriate budget for the Office of the Vice President (OVP), if she could justify it.”

Lawmakers earlier cut the OVP budget this year to about P733 million from the P2.06 billion under the National Expenditure Program.

The House of Representatives impeached Ms. Duterte before it went on a four-month break on Feb. 5, alleging misuse of secret funds, unexplained wealth, acts of destabilization, and plotting the assassination of the President, the First Lady and the Speaker.

The Impeachment complaint was filed and signed by more than 200 congressmen, more than the one-third legal requirement before it could be sent to the Senate, which will try her as an impeachment court. Under the 1987 Constitution, several congressmen will be serving as impeachment prosecutors. — John Victor D. Ordoñez

LPG regulation act compliance urged

PHILSTAR FILE PHOTO

THE Department of Energy (DoE) is urging liquefied petroleum gas (LPG) industry players to comply with the LPG Industry Regulation Act (LIRA) for public safety and consumer protection as there were participants who failed to follow.

“As of date, there have been a number of LPG industry participants that have been administratively charged and imposed fines and penalties for violation of the LIRA,” the DoE said in a statement on Monday.

Republic Act No. 11592, LIRA, regulates the LPG industry to ensure compliance with the standards for health, safety and quality applicable to the activities related to LPG, which is widely used for cooking, heating, and vehicles.

These activities include the importation, refining, storage, export, refilling, transportation, distribution, and marketing of LPG, and the importation, manufacture, requalification, repair, exchange, improvement, and scrapping of LPG pressure vessels, LPG seals, and other ancillary equipment.

The law provides substantial administrative and criminal penalties, including fines of up to P100,000 for every non-compliant item, material or equipment, such as LPG seal or pressure vessel. Non-compliant players could also face business closure and permanent disqualification, and imprisonment of up to 12 years.

“These penalties are designed to protect consumers, prevent hazardous incidents, and maintain the integrity of the LPG industry sector,” Energy Undersecretary Alessandro O. Sales said.

“By enforcing strict safety measures, we ensure that only legally sourced and properly handled LPG products reach the market, underscoring the government’s unwavering commitment to public safety and product quality,” he added.

As of December 2024, there are 6,952 registered LPG players, according to DoE. — Sheldeen Joy Talavera

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