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Groups unite vs poll violence

PHILSTAR FILE PHOTO

COTABATO CITY — Seven big groups promoting good governance, human rights and Muslim-Christian solidarity have set up an election monitoring system to ensure peaceful and clean elections in southern Moro communities on May 12.

The nonpartisan Independent Election Monitoring Center (IEMC) will be jointly operated by the nongovernment Institute for Autonomy and Governance, National Citizens Movement for Free Elections, Notre Dame University, Notre Dame Broadcasting Corporation, Parish Pastoral Council for Responsible Voting-Cotabato City, Climate and Conflict Action Asia and the Coalition for Social Accountability and Transparency.

Launched on May 5, the IEMC, located inside the campus of the Notre Dame University in Cotabato City will monitor the May 12 elections and disseminate information through partner media on possible election-related violence that need policy and military intervention.

The IEMC will also operate in the first parliamentary elections in the Bangsamoro Autonomous Region in Muslim Mindanao in October, Benedicto R. Bacani, executive director of the Institute for Autonomy and Governance, told reporters. — John Felix M. Unson

ARTA cites economic optimism

BW FILE PHOTO

PHILIPPINE businesses are optimistic about economic prospects amid a continued push to streamline government processes and cut red tape, according to the Anti-Red Tape Authority (ARTA).

“We’re seeing a very upbeat business community,” Ernesto V. Perez, ARTA Director General, told a news briefing in mixed English and Filipino on Tuesday, citing recent collaborations with chambers of commerce and visits from foreign diplomats backing regulatory reforms.

Business groups including the Philippine Chamber of Commerce and Industry, Employers Confederation of the Philippines and Philippine Exporters Confederation have vowed to support ARTA’s initiatives, he pointed out.

The upbeat sentiment reflected growing investor confidence as the government accelerated the rollout of digital systems such as the electronic Business One-Stop Shop (e-BOSS) and enforced compliance across local government units (LGU).

“In 2028, we want all LGUs to be compliant with e-BOSS… that’s why we’re replacing red tape with red carpet, because this is the number one concern among businessmen,” Mr. Perez said. — Chloe Mari A. Hufana

Agencies told to explain Duterte arrest

FORMER PRESIDENT Rodrigo R. Duterte — OFFICIAL FACEBOOK ACCOUNT OF THE SENATE OF THE PHILIPPINES

THE Ombudsman has ordered several high-ranking government officials to file a counter-affidavit in response to the findings by the Senate foreign relations committee of ex-President Rodrigo R. Duterte’s allegedly illegal arrest.

The Justice and Interior secretaries, national police chief, Crime Investigation and Detection Group director and special envoy on transnational crimes of the Foreign Affairs department were given 10 days to comment on the committee findings.

“Failure to file a counter-affidavit within the aforesaid period shall be deemed as a waiver of respondents’ right to submit controverting evidence and the preliminary investigation shall proceed accordingly,” according to the three-page order.

The complaint came after the Senate body probed the arrest of Mr. Duterte, who is now in custody of the International Criminal Court in The Hague awaiting trial for his alleged crimes against humanity. — Chloe Mari A. Hufana

Tagbilaran gets NGA 911

MORONG’S emergency response units participate in a tournament with the Philippine Army on March 3. — MDRRMO MORONG, RIZAL

THE local government of Tagbilaran City in Bohol last week launched a command center under the Next Generation Advanced 911 (NGA 911) emergency response technology.

The emergency communication tech was patterned after the US and provided by NGA 911 Philippines, a unit of American cloud-based emergency telecommunications solution provider NGA 911 LLC, the local company said in a statement.

With the city’s new emergency response command center, authorities can get quick and accurate caller location and record all calls.

It can use data-driven analytics, integrate CCTV systems and identify and reduce prank calls.

The Port of Tagbilaran, which serves as a major seaport in Central Visayas, is a gateway for both passengers and cargoes from key destinations including Manila. — Beatriz Marie D. Cruz

Bayan Muna backs seaman suit

STOCK PHOTO | Image by iliastefanidis30 from Pixabay

BAYAN MUNA has backed a lawsuit that seeks to void portions of the newly enacted Magna Carta for Seafarers at the Supreme Court.

“Bayan Muna, together with the seafarers, has been protesting against the unjust provisions of the Magna Carta for Filipino Seafarers since 2023, but our legislators have failed to heed the legitimate demands of the supposed beneficiaries of the Magna Carta law,” former Party-list Rep. Neri J. Colmenares, who lawyers for the seamen, said in a statement on Tuesday.

The lawsuit claims the law violates constitutional guarantees on equal protection of the law and legislative procedures.

The law requires a bond before a seaman can be awarded compensation, which the plaintiffs said puts undue burden that is not imposed on land-based workers.

“The seafarer has already won at the National Labor Relations Commission (NLRC); now they also need to pay to get the compensation they won,” Mr. Colmenares said.

“What kind of Magna Carta is this? How can seafarers feed their families and post a bond when they are unemployed due to injuries?” he asked. — Chloe Mari A. Hufana

Peso strengthens with April CPI at over five-year low

BW FILE PHOTO

THE PESO climbed against the dollar on Tuesday after Philippine headline inflation cooled to an over five-year low last month.

The local unit closed at P55.61 per dollar on Tuesday, strengthening by 16 centavos from its P55.77 finish on Monday, Bankers Association of the Philippines data showed.

The peso opened Tuesday’s trading session weaker at P55.80 against the dollar. Its worst showing was at P55.90, while its intraday best was at P55.51 versus the greenback.

Dollars exchanged inched down to $2.28 billion on Tuesday from $2.296 billion on Monday.

The slower-than-expected April inflation print supported the peso on Tuesday, both Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort and a trader said.

Headline inflation in April sharply decelerated to its slowest print in since November 2019 amid easing food prices, the Philippine Statistics Authority (PSA) reported on Tuesday.

The consumer price index (CPI) stood at 1.4% in April, easing from 1.8% in March and 3.8% in the same month a year ago.

This was within the 1.3% to 2.1% forecast of the Bangko Sentral ng Pilipinas (BSP) for the month and well below the 1.8% median estimate in a BusinessWorld poll of 14 analysts conducted last week.

For the first four months, the CPI averaged 2%, at the low end of the BSP’s 2-4% annual target.

“Trade optimism also kept on weighing on the dollar as the market monitors progress on the trade talks and ahead of the FOMC (Federal Open Market Committee) meeting this week,” the trader added.

For Wednesday, the trader expects the peso to move between P55.50 and P55.80 against the greenback, while Mr. Ricafort sees it ranging from P55.50 to P55.70.

The dollar dipped against major peers on Tuesday as concerns about tariffs and their impact on the economy lingered, while focus was turning to the Federal Reserve’s policy announcement on Wednesday, Reuters reported.

Investor attention has been on the possibility of easing trade tensions between the US and China after Beijing last week said it was evaluating an offer from Washington to hold talks over tariffs.

US President Donald J. Trump said on Sunday that Washington is meeting with many countries, including China, and that his main priority with China is to secure a fair deal.

But with few details coming out about trade discussions, investors have been left trying to make sense of headlines coming out of the White House.

Mr. Trump’s erratic trade policies have fueled significant waves of dollar selling since April as investors shifted away from US assets, pushing the euro, yen and Swiss franc higher.

The euro on Tuesday was up 0.3% against the dollar at $1.1347, and the yen was up 0.5% at 142.95 per dollar.

That dollar selling has spread to other Asian foreign exchange (FX), underscored by the Taiwan dollar’s record surge in recent sessions, which has stoked speculation that a revaluation of regional foreign exchange was possible to win US trade concessions.

Its rally suggested a big unwinding was under way and shone a light on one economy, among many, where years of big trade surpluses have built up large long dollar positions at exporters and insurers that are now under question and on edge.

The Taiwan dollar was fairly sedate on Tuesday last fetching 30.28 per US dollar, not far from the near three-year high of 29.59 it touched on Monday.

The focus turned to Hong Kong on Tuesday, where the de facto central bank bought $7.8 billion to stop the local currency from strengthening and breaking its peg to the greenback.

“The real action today is in Asian FX,” said Charu Chanana, chief investment strategist at Saxo in Singapore.

“If these currencies keep strengthening sharply, it could spark fears of a ‘reverse Asian currency crisis,’ with potential ripple effects in the bond market amid fears that Asian institutions reassess their unhedged exposure to Treasury holdings.” — Aaron Michael C. Sy with Reuters

Stocks rebound as inflation sharply slows in April

REUTERS

PHILIPPINE STOCKS rebounded on Tuesday as headline inflation slowed to an over five-year low in April, paving the way for further monetary easing.

The bellwether Philippine Stock Exchange index (PSEi) climbed by 0.92% or 59.06 points to end at 6,418.69, while the broader all shares index increased by 0.72% or 26.86 points to 3,746.12.

“The local market bounced back as investors cheered the Philippines’ April inflation rate which came in at 1.4%, lower than the preceding month’s 1.8%,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “The low inflation figure is seen to give the Bangko Sentral ng Pilipinas (BSP) more room to ease their policy.”

“Philippine shares managed to resume their gains driven by the better-than-expected consumer price index (CPI) and more earnings releases,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The April CPI was the lowest since the 1.2% logged in November 2019 amid moderating oil and food prices.

This was within the 1.3% to 2.1% forecast of the Bangko Sentral ng Pilipinas for the month and well below the 1.8% median estimate in a BusinessWorld poll of 14 analysts.

For the first four months, headline inflation averaged 2%, at the low end of the BSP’s 2-4% annual target.

BSP Governor Eli M. Remolona, Jr. said on Monday that cooling inflation gives the central bank “a lot of policy space.”

The Monetary Board last month resumed its easing cycle after an unexpected pause in April, cutting benchmark borrowing costs by 25 basis points (bps) to bring the policy rate to 5.5%. Its next meeting is on June 19.

Mr. Remolona earlier said they are likely to reduce rates further this year in “baby steps” of 25 bps at a time.

Almost all sectoral indices closed higher on Tuesday. Services rose by 3.52% or 69.64 points to 2,048.16; mining and oil went up by 2.62% or 248.49 points to 9,705.38; industrials increased by 0.64% or 57.96 points to 8,989.78; holding firms climbed by 0.55% or 29.50 points to 5,387.18; and property inched up by 0.05% or 1.30 points to 2,300.97.

Meanwhile, financials declined by 0.16% or 4.14 points to 2,458.45.

“Bloomberry Resorts Corp. was the top index gainer, jumping 9.97% to P4.19. Semirara Mining and Power Corp. was the main index loser, dropping 1.36% to P32.55,” Mr. Tantiangco said.

Value turnover increased to P6.15 billion on Tuesday with 876.09 million shares traded from the P5.67 billion with 699.74 million issues exchanged on Monday.

Advancers edged out decliners, 97 versus 95, while 46 names closed unchanged.

Net foreign buying stood at P690.87 million on Tuesday, a turnaround from the P77.41 million in net selling recorded on Monday. — Revin Mikhael D. Ochave

PHL retreats four places in Human Dev’t Index ranking

PHILIPPINE STAR/EDD GUMBAN

THE PHILIPPINES fell four spots on the Human Development Index (HDI) rankings, coming in at 117th in the 2023 evaluation, despite posting improving scores, the United Nations Development Program (UNDP) said.

In a statement, the UNDP said the Philippine score improved to 0.720, up from 0.714 in 2022 and 0.690 in 2019.

The index gauges a country’s health, education and standard of living.

“The Philippines’ HDI value for the year 2023 climbed to 0.720, reflecting an increase of 1.4% from the 2022 level; however, it remains below the average HDI for the East Asia and Pacific region,” the UNDP said in a statement on Tuesday.

The Philippines scored below East Asia and the Pacific’s average of 0.775 and the global average of 0.756.

Among neighboring countries, human development levels were “very high” in Hong Kong (8th), Singapore (13th), and Brunei Darussalam (60th).

The Philippines had a “high” human development level, as did Malaysia (67th), Thailand (76th), Vietnam (93rd), Indonesia (113rd) and Timor-Leste (142nd).

On the other hand, human development was classified as “medium” in Laos (147th), Myanmar (150th), and Cambodia (151st).

“Instead of seeing sustained recovery following the period of exceptional crises of 2020-2021, the report reveals unexpectedly weak progress. Excluding those crisis years, the meagre rise in global human development projected in this year’s report is the smallest increase since 1990,” the UNDP said.

The report also found that while global development is decelerating at an alarming rate, inequalities continue to widen between rich and poor countries.

“As traditional paths to development are squeezed by global pressures, decisive action is needed to move the world away from prolonged stagnation,” it said.

Life expectancy at birth is at 69.8 years in the Philippines, according to the Human Development Index. The expected years of schooling for Filipinos is 12.8, with the mean years of school is 10.

The Philippines also ranked 92nd in the gender inequality index with a score of 0.351, while its gender development score stood at 0.966.

The report also found that half of respondents worldwide think their jobs can be automated.

“An even larger share — six in ten — expect AI to impact their employment positively, creating opportunities in jobs that may not even exist today,” she said.

Around 13% of survey respondents fear artificial intelligence (AI) could lead to job losses while in low- and medium-HDI countries, 70% expect AI to increase their productivity. Two-thirds anticipate using AI in education, health, or work within the next year.

“The choices we make in the coming years will define the legacy of this technological transition for human development,” Pedro Conceição, director of UNDP’s Human Development Report Office, said.

“With the right policies and focus on people, AI can be a crucial bridge to new knowledge, skills, and ideas that can empower everyone from farmers to small business owners.” — Aubrey Rose A. Inosante

Intra-regional trade seen shielding PHL ports from worst of US tariffs 

PHILIPPINE STAR/EDD GUMBAN

PHILIPPINE PORTS will not feel the worst of the US tariff disruptions because of healthy intra-regional trade, according to S&P Global Ratings.

“Most of the ports in Asia actually are quite diversified. So yes, trade with the US is a big component, but that is not the only counterpart to deal with. There is a lot of intra-regional trade,” S&P Global Ratings Managing Director Christopher Yip said on the Money Talks with Cathy Yang program on One News on Tuesday. 

According to Mr. Yip, it is too early to assess the impact of the tariffs imposed by US President Donald J. Trump as most shipping lines are still adjusting to these changes.

“Everyone is looking at the uncertainty… the shipping lines are basically still adjusting to that. So some ships are still continuing, the routes have been planned. It will take time for a new equilibrium to be established,” he said.

“It really depends on the negotiations between China and the US. And also what will happen to the 90-day pause for the tariffs for the rest of the countries,” Mr. Yip said.

Mr. Trump has imposed a system of reciprocal tariffs, initially set at about half the tariffs charged by trading partners on incoming US goods. The markets deemed most liberal in accepting US goods have been assigned a “baseline” tariff of 10%.

The reciprocal tariffs imposed in early April have since been suspended for 90 days, with most trading partners being charged the 10% “baseline” tariff.

The Philippines, which had been assigned a 17% baseline tariff, dispatched a negotiating team to Washington last week to seek more favorable terms.

Philippine Ports Authority General Manager Jay Daniel R. Santiago said last week that it is expecting little to no impact on the shipping industry from the US tariffs.

International Container Terminal Services, Inc. said its global operations are unlikely to be affected by the new US tariffs, though its Mexico unit might be affected disproportionately. — Ashley Erika O. Jose

German medical tech firms see PHL as good fit for telehealth

REUTERS

THE PHILIPPINES is now on the radar of German medical technology companies as trade disruptions push them to develop untapped markets, the German Health Alliance (GHA) said.

“Due to the geopolitical situation, Germany is more focused on diversification and trying to enter different markets,” GHA Senior Manager Rajani Sabanantham told BusinessWorld on the sidelines of the German-Philippine Conference on Medical Technology and Digital Health.

Ms. Sabanantham is part of the German delegation to the Philippines, which will be in the country until May 9. The delegation comprises German small and medium enterprises making medical technology and digital health products.

“We, the German industry, and the government are open to entering Asian markets. A lot of representatives from the government have participated in delegations to these countries. The Philippines is one of the most interesting countries, and that is one of the reasons why we are here,” she said.

She cited strong demand for medical technology and digital health in the Philippines, as gleaned from the delegation’s hospital visits.

“I heard about a lot of modernization, infrastructure projects, and investments in healthcare in the Philippines, which (makes it), I think, a good time for the German healthcare industry to enter this market,” she said.

“And also because you have a lot of islands, digital solutions, telemedicine, and other digital health solutions will be a great opportunity, especially for our German companies,” she added.

She said very little is known about the Philippine market in Germany, a situation which calls for more exchanges between the two countries.

“One of the most important advantages in collaborating with your country is all the young people are skilled and can speak English. Most of the Asian countries are difficult to enter because of the language barrier,” she said.

On Tuesday, the German-Philippine Chamber of Commerce and Industry (GPCCI) hosted the conference together with the Medical Device Association of the Philippines, the Private Hospitals Association of the Philippines, Inc., and the Healthcare Technology Association of the Philippines.

“Digital health and medical technology are powerful enablers for healthcare transformation,” GPCCI Deputy Executive Director Charlotte Bandelow said.

“We are proud to provide a platform where German innovation and Philippine healthcare priorities can meet. We arranged around 50 business-to-business meetings to initiate concrete cooperation,” she added.

The companies in the delegation include 3di GmbH, Bavarian Institute for Age- and Dementia-sensitive Architecture, Clinaris GmbH, fracto GERDES GBR, INOSOLVE GmbH, kimetec GmbH, Oehm und Rehbein GmbH, and VISUS Health IT GmbH.

“We see tremendous potential for German companies to contribute to the Philippine healthcare system, particularly in diagnostics, telehealth, and hospital technology,” GPCCI President Marie Antoniette Mariano said.

“This mission reflects Germany’s commitment to building lasting partnerships in sectors with real impact,” she added. — Justine Irish D. Tabile

Spot market price downtrend expected to continue in May

BW FILE PHOTO

PRICES at the Wholesale Electricity Spot Market (WESM) are expected to continue falling in May due to the ample power supply, the Independent Electricity Market Operator of the Philippines (IEMOP) said.

“Given the trend we are seeing now, we have ample supply, and we see the same level of margin all throughout the month of May. So, we expect the same level of prices that we are experiencing now. Hopefully, even lower,” Isidro E. Cacho, Jr., IEMOP’s head of corporate strategy and communications, said in a virtual briefing on Tuesday.

Mr. Cacho is also hopeful supply will continue to increase in the remainder of the year with the entry of new renewables.

With the upcoming midterm elections, Mr. Cacho said stable spot prices will extend even beyond the polls.

“After the election season, we could still see ample supply generally stable prices,” he said.

For April, the average WESM price system-wide declined 15.3% month on month to P4.52 per kilowatt-hour (kWh) as the supply margin widened.

Available supply improved 8.8% to 21,345 megawatts (MW) while demand grew 7.8% to 14,739 MW.

Manila Electric Co. (Meralco), the country’s largest private distribution company, is expecting a potential reduction in the generation and transmission charges for the May electricity billing cycle.

“Initial data shows WESM prices trended lower in the April supply month as power plants that went on outage started to resume operations, boosting capacity in the market,” Meralco Spokesperson Joe R. Zaldarriaga said.

Moreover, Mr. Zaldarriaga said that transmission charges are likely to decline due to lower reserve market prices as well as the completion of the three-month collection of deferred payments to power generators.

In April, the power distributor raised electricity rates by P0.7226 per kWh to P13.0127 per kWh, due to the higher generation charge. — Sheldeen Joy Talavera

April rice stocks rise 45.3% month on month

THE national rice inventory rose 45.3% month on month to 2.34 million metric tons (MMT) as of April 1, the Philippine Statistics Authority (PSA) reported.

Year on year, inventory rose 26.2%.

As of April 1, 50.2% of the rice inventory was held by households, 35.1% by the commercial sector, and 14.8% by the National Food Authority (NFA).

Month on month, rice stocks held by the commercial sector, households, and NFA rose 55.5%, 49.8%, and 15.5%, respectively, the PSA said.

Stocks held by NFA warehouses rose 733.6% year on year, it added.

The NFA has been touting its increased reserves, which hit 10.1 million bags of palay and 1.2 million bags of milled rice in late April.

The volumes were the highest since 2020 and sufficient to cover 10 days’ consumption.

The government has stepped up efforts to lower prices of the food staple ahead of the midterm elections.

On May 1, a P20-per-kilo rice program subsidized by both the local and national governments rolled out in Cebu.

The Department of Agriculture has since suspended the pilot program to comply with the May 2-12 ban on the distribution of government aid during election season.

The PSA last week reported that at the national level, regular milled rice averaged P44.44 per kilo at retail during the April 15-17 monitoring period.

This was lower than its average retail price on April 1-5 of P44.92 per kilo and P46.02 on March 15-17.

Meanwhile, the PSA said in a separate report that palay production rose 0.3% year on year to 4.70 MMT in the three months to March.

Central Luzon accounted for 17.2% or 808.60 thousand MT of total palay production during the period. This was followed by the Cagayan Valley with 640.43 thousand MT (13.6%) and the Western Visayas with 549.51 thousand MT (11.7%).

The three regions accounted for 42.5% of national palay production during the quarter.

The palay harvest area in the three months to March fell 2.3% year on year to 1.15 million hectares. — Kyle Aristophere T. Atienza

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