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Philippines, France eye deeper economic ties

A PROTESTER holds a French national flag as people gather to protest against the French far-right Rassemblement National (National Rally - RN) party, at the Place de la Republique following partial results in the first round of the early 2024 legislative elections, in Paris, France, June 30, 2024. — REUTERS

MANILA and Paris are looking to improve cooperation in the infrastructure, transport, aviation, agriculture, and security sectors, following their Joint Economic Committee (JEC) meeting on Tuesday.

“We have covered a wide range of topics, projects, and initiatives which basically reflect the strong economic relations of the Philippines with France,” Trade Undersecretary Allan B. Gepty told a news briefing, without providing specific details.

“This range of topics would cover their interest in public works or infrastructure development, aviation, railways, agriculture, cybersecurity, interest in film development, human capital development, and even tourism among others,” he said.

Mr. Gepty added that France remains a key trading and investment partner for the Philippines.

France is the country’s 19th top trading partner valued at $1.54 billion, and 20th biggest export market $404.28 billion, and 18th biggest source of import at $1.14 billion as of 2024. Total trade between France and the Philippines represented a 4.3% growth in the last 10 years.

He added that Paris is vital to the approval of the Philippines and European Union free trade agreement (EU-FTA), as they seek to complete negotiations by next year.

“Moving forward, our relations with France is very promising and we can see a lot of good prospects as we move forward in our economic relations with them,” he said. “Especially as we embark on a deeper and permanent trade relations as we forge the free trade agreements with the European Union.”

The Department of Trade and Industry earlier said that FTA negotiations between Philippines and the EU were on track.

“France is one of the EU countries who has been very supportive in our effort to force this FTA,” Mr. Gepty added.

The Philippines-EU FTA is expected to be the country’s most comprehensive trade agreement, being the first such deal to tackle government procurement, digital trade, energy and raw materials, and trade and sustainable development. — Adrian H. Halili

Tino downs 19 power lines in Visayas

PHILSTAR FILE PHOTO

A TOTAL of 19 transmission lines were unavailable due to Typhoon Tino, affecting power consumers in parts of the Visayas, the National Grid Corp. of the Philippines (NGCP) said on Tuesday.

In its 5 p.m. update, NGCP said there are 13 69-kilovolt (kV) transmission lines, five 138-kV line, and one 230-kV line that were offline.

The grid operator has successfully restored the Maasin-San Isidro 69-kV Line, providing power to the customers served by Southern Leyte Electric Cooperative, Inc.

“NGCP has mobilized its line crews and is currently conducting patrols. Simultaneous restoration activities are also being conducted in areas already accessible,” the company said.

In a statement, as of 1:04 p.m., the National Electrification Administration (NEA) said that total power interruptions were reported in eight electric cooperatives while 15 experienced partial outages.

“There is a safety protocol that has to be followed. Line inspection has to be done before electricity can be restored in the substations. So, just a little patience and I hope we are all safe,” said NEA Administrator Antonio Mariano C. Almeda. — Sheldeen Joy Talavera

Gov’t workers to get early bonus

BW FILE PHOTO

THE government will distribute year-end bonuses and P5,000 cash gifts to civil workers ahead of schedule this month, Malacañang said on Tuesday.

Palace Press Officer Clarissa A. Castro said the early release of benefits reflects President Ferdinand R. Marcos, Jr.’s recognition of the dedication and service of government workers nationwide.

The Department of Budget and Management (DBM) has allocated P63.69 billion for the 2025 year-end bonuses of civilian and uniformed personnel and an additional P9.24 billion for the cash gifts.

The payout will cover more than 1.85 million government employees nationwide.

“Pursuant to Budget Circular No. 2024-3, the year-end bonus and P5,000 cash gift will be released with the first agency payroll of Nov. 2025,” Budget Secretary Amenah F. Pangandaman said in a separate statement.

Under the DBM’s guidelines, government workers who have served at least four months since Jan. 1 and remain in service as of Oct. 31 qualify for the year-end bonus and cash gift.

The agency also directed all government offices to release the payments promptly and in line with existing budget circulars. — Chloe Mari A. Hufana

Classroom shortage probe urged

PRESIDENT Ferdinand R. Marcos, Jr. led the Brigada Eskwela 2025 on Monday at the Barihan Elementary School in Malolos City, Bulacan on June 9. — YUMMIE DINGDING / PPA POOL

MINORITY lawmakers filed a resolution at the House of Representatives on Tuesday urging an inquiry into what they described as the Marcos administration and his predecessor’s failure to resolve persisting classroom shortages despite consistent public education funding.

The House basic education committee should probe what caused the “extremely low performance” of the government’s school building program despite billions being poured into it, according to House Resolution (HR) No. 425, warning of possible fund misprioritization.

“It is imperative to Congress to investigate the very low performance, low budgets and low targets in constructing the much-needed new classrooms,” the resolution, authored by Party-list Reps. Antonio L. Tinio, Sarah Jane I. Elago and Renee Louise M. Co, read.

The Education department earlier estimated it would take 55 years to eliminate the country’s 165,000-classroom backlog. Lawmakers have since increased funding for new classrooms to P35.09 billion, translating to roughly 25,200 additional classrooms, according to Nueva Ecija Rep. Mikaela Angela B. Suansing. — Kenneth Christiane L. Basilio

Zambales dredging inquiry eyed

PHILIPPINE STAR/MIGUEL DE GUZMAN

A PHILIPPINE lawmaker on Tuesday filed a measure urging a congressional inquiry into alleged large-scale dredging activities by a China-based company in the central province of Zambales.

House Deputy Minority Leader and Party-list Rep. Leila M. de Lima called for a review of the Chinese construction company’s contracts and compliance with local regulations, citing concerns of environmental damage and labor violations.

“The findings of such inquiry should guide the formulation of stronger environmental safeguards, transparency mechanisms, and accountability measures to ensure that all dredging and reclamation activities are conducted in accordance with law,” she said in House Resolution No. 424.

“If these large-scale dredging operations are left unchecked, we would be neglecting the welfare and concerns of our countrymen,” she added. — Kenneth Christiane L. Basilio

24 NPAs, religious extremists surrender in Central Mindanao

COTABATO CITY — Two groups, composed of New People’s Army (NPA) guerillas and violent religious extremists, have pledged allegiance to the government in separate rites in two Central Mindanao provinces over the weekend, Army officials announced on Tuesday.

Officials of the Army’s 6th Infantry Division told reporters that the first to yield were 16 combined NPAs and members of the outlawed Bangsamoro Islamic Freedom Fighters (BIFF) and the Dawla Islamiya, who agreed to return to the fold of law through the joint efforts of the Army’s 38th Infantry Battalion (IB), led by Lt. Col. Erwin E. Felongco, South Cotabato Gov. Reynaldo S. Tamayo, Jr. and Brig. Gen. Arnold P. Ardiente, director of the Police Regional Office-12.

The BIFF and the Dawlah Islamiya have been tagged in all deadly bombings since 2014 in cities and towns in Region 12 and in the adjoining Maguindanao del Norte, Maguindanao del Sur and Cotabato City in the territory of what is now the Bangsamoro Region.

They also have a reputation for fomenting hatred for non-Muslims, which Islamic theologians detest for being contrary to teachings on promotion of interfaith solidarity and utmost respect for religions.

Mr. Tamayo, chairman of the multi-sector South Cotabato Provincial Peace and Order Council, provided them with initial relief supplies and cash assistance that they can use for expenses in their return to their hometowns.

Three of the NPAs who showed up at the office of Mr. Tamayo confessed to their involvement in the burning of heavy equipment of construction firms in separate arson attacks in different towns in South Cotabato after owners refused to give their commanders “protection money” and supply them with rice and other vital provisions.

In a separate ceremony witnessed by sectoral leaders, eight other NPAs, all from an indigenous highland tribe, also surrendered to the Army’s 37th Infantry Battalion in Barangay Tibpuan in the seaside Lebak town in Sultan Kudarat.

They yielded after more than a week of backchannel dialogues with the battalion commander of the 38th IB, Lt. Col. Christopherson M. Capuyan, and his subordinate-officers, representatives from the municipal governments in Sultan Kudarat’s neighboring Lebak, Kalamansig and Palimbang towns and officials of the Army’s 603rd Infantry Brigade.

Two of the eight NPAs separately told reporters that they decided to come out and surrender to the 37th Infantry Battalion after learning that their companions who have availed of the government’s Enhanced Comprehensive Local Integration Program (E-CLIP) for communist insurgents had been reintroduced to mainstream society.

“They were reunited with their families and now are earning as farmers and fishermen as members of livelihood cooperatives, as drivers of passenger vehicles and as construction workers. We have realized there is nothing good about being members of the New People’s Army, which is a terrorist organization,” One of the eight surrenderee said in Filipino. — John Felix M. Unson

PHL stocks rebound as players pick up blue chips

BW FILE PHOTO

PHILIPPINE STOCKS rebounded on Tuesday as players picked up cheap shares of blue chips following the market’s recent weakness.

The bellwether Philippine Stock Exchange index (PSEi) rose by 0.66% or 38.98 points to close at 5,867.04, while the broader all shares index increased by 0.28% or 9.98 points to 3,558.88.

“The index bounced back from oversold levels following [Monday’s] market meltdown as investors pick up blue chips that have been sold down to multi-year lows,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message.

“The benchmark stock index rebounded modestly on the back of bargain hunting and net foreign buying. Monday’s plunge brought many blue chips to compelling valuations, making them attractive to both opportunistic traders and long-term investors,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said.

However, uncertainty on the political and economic fronts continues to weigh on sentiment, he said.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said the PSEi’s rise on Tuesday was likely a technical rebound following its drop to a near seven-month low on Monday amid heavy selling pressure.

“[The] market continues to await the release of inflation and GDP (gross domestic product) figures, along with corporate earnings reports, to confirm its next direction,” he said.

The Philippine Statistics Authority will release October inflation data on Nov. 5 (Wednesday) and third-quarter GDP data on Nov. 7 (Friday).

A BusinessWorld poll of 17 analysts yielded a median estimate of 1.8% for October headline inflation. This would be faster than the 1.7% clip in September but within the Bangko Sentral ng Pilipinas’ (BSP) 1.4-2.2% forecast. It would also mark the eighth month in a row that inflation was below the BSP’s 2-4% annual target.

Meanwhile, Philippine GDP likely grew by 5.3% in the third quarter, based on the median forecast of 18 economists and analysts separately polled by BusinessWorld. This is slower than the 5.5% expansion in the second quarter and is below the government’s 5.5%-6.5% full-year goal.

Sectoral indices ended mixed on Tuesday. Financials climbed by 2.08% or 39.60 points to 1,936.18; property increased by 1.94% or 41.21 points to 2,164.36; and services rose by 0.12% or 2.81 points to 2,268.06.

Meanwhile, industrials declined by 1.23% or 108.43 points to 8,648.65; mining and oil shed 1.2% or 150.41 points to 12,337.88; and holding firms decreased by 0.06% or 3.16 points to 4,751.63.

Market breadth was positive as advancers outnumbered decliners, 108 to 83, while 57 names were unchanged.

Value turnover went down to P6.37 billion on Tuesday with 538.81 million shares traded from the P9.80 billion with 801.95 million issues exchanged on Monday.

Net foreign buying was at P339.79 million, a reversal of the P1.33 billion in net selling recorded on Monday. — Sheldeen Joy Talavera

Floor price for live hogs set at P210 per kilo

STOCK PHOTO | Image by Barbara Barbosa from Pexels

THE Department of Agriculture (DA) said it reached agreement with the pork industry to set a minimum farmgate price of P210 per kilogram for hogs on a liveweight basis.

The floor price is designed to arrest a steep drop in the live weight price to around P150 to P180 per kilo, which represents little more than breakeven cost, industry officials said.

The Samahang Industriya ng Agrikultura (SINAG), the National Federation of Hog Farmers, Inc., and the Pork Producers Federation of the Philippines represented the hog industry in talks with the DA.

The DA said it will also recommend restoring the pork import tariff to 40% from the current 25% under Executive Order 62, citing excessive imports.

Low import duties have encouraged excess imports which have “flooded the market, squeezed local producers, and endangered both our food security and farmers’ livelihoods,” Mr. Laurel was quoted as saying in a statement.

Jayson H. Cainglet, executive director of SINAG, told BusinessWorld via Viber that the influx of cheaper imported pork has not shown up in market prices.

“Tutal hindi naman nagre-reflect ang tariff sa market price, ibalik na lang sa original. Binubulsa lang ng importers ang difference. Hindi nakikinabang ang consumers at producers (Since the low tariffs are not reflected in market prices, we might as well restore the original tariff. Importers are capturing the profits if tariffs are low but prices remain the same. Consumers and producers are not benefiting,” Mr. Cainglet said.

The DA added that it plans to reinstate a maximum suggested retail price for pork, which would be set at a level that balances “profitability across the supply chain and consumer protection.”

The DA will also issue an order reclassifying pork jowls, currently considered offal, to subject them to higher tariffs. Demand for pork jowls, a popular cut used in Korean barbecue (samgyupsal), has risen among meat processors. — Vonn Andrei E. Villamiel

Rice imports expected to resume by mid-Jan.

REUTERS

THE Department of Agriculture (DA) said on Tuesday that rice imports could resume in mid-January as prices stabilize following a four-month import ban.

DA Spokesman Arnel V. de Mesa said the executive order extending the import ban until December has yet to be released but confirmed it will be issued soon.

“We were informed that the executive order will be released,” he told a Palace briefing.

Imports will be allowed starting mid-January, running into mid-February, allowing rice inventories to build up before the next harvest.

“By January, we definitely need imports because there will be no additional harvest,” he said. “That’s why the ban is only until December.”

He added that the government will reassess conditions later in the year to determine whether another import freeze will be necessary. 

“It’s possible that we may reimpose a ban if harvests remain strong, to protect farmgate prices,” he added.

The DA over the weekend announced that the suspension of rice imports will remain in place until year’s end to help stabilize the farmgate price of palay, or unmilled rice.

The Philippines is the world’s largest rice importer, according to the US Department of Agriculture (USDA). The USDA trimmed its 2025 rice import forecast for the Philippines to 4.9 million metric tons (MMT) from 5.4 MMT previously following the government’s import freeze.

As of August, before the freeze took effect, imports amounted to 2.58 MMT of rice, down from 4.81 MMT imported in 2024.

Agriculture Secretary Francisco P. Tiu Laurel, Jr. said on Sunday that the executive order signed by President Ferdinand R. Marcos, Jr. that would formalize the extended import ban was initially expected to be released on Monday, Nov. 3.

The Marcos administration first implemented the import ban on Sept. 1 to stem the decline in prices of the staple grain ahead of the wet-season harvest.

While prices initially recovered following the suspension, they began to ease again as the original Oct. 31 expiry date approached.

The next lean period, Mr. De Mesa noted, will fall between July and August, ahead of the September harvest.

“We are now able to plan these cycles better — when to impose an import ban and when to allow imports — to protect both farmers and consumers and to ensure price stability,” he added.

Raul Q. Montemayor, national manager of the Federation of Free Farmers, said the import ban has not significantly propped up farmgate prices.

“Palay prices fell to P15.60 per kilo in September from P17.11 a month before, despite the start of the import ban,” he said via Viber.

“While there are reports of slight increases, prices remain low compared to previous periods,” he said, estimating the cost of production at about P14.50 per kilo.

Mr. Montemayor added that most of the palay harvest has been brought in, meaning any price increases driven by the ban would likely benefit traders rather than farmers.

He also warned that the government must closely monitor rice inventory levels through the rest of the year.

“Between October and December — excluding September, because for some reason they allowed 340,000 tons to come in despite the ban — we will forego about 1 million tons of imports, volume that would have been added to supply if there was no ban,” he said.

“The next harvest will be in March-May, so whatever stocks are carried over from 2025 plus imports that will come in if the ban is lifted say in January should be enough for at least three months consumption.” — Chloe Mari A. Hufana

Rice inventory up 3.2% in Oct. as NFA holdings rise sharply

PHILIPPINE STAR/MIGUEL DE GUZMAN

THE national rice inventory rose to 2.35 million metric tons (MMT) as of Oct. 1, up 3.2% year on year, the Philippine Statistics Authority (PSA) reported.

Of the total stock, 40.5% was held by commercial traders, 40.4% by households, and 19% by the National Food Authority (NFA).

Stock held by the NFA more than doubled to 447,900 MT in October from 172,640 MT a year earlier.

Rice held by commercial establishments amounted to 954,910 MMT, down 21.1%.

Rice held by households rose 6% year on year to 952,090 MT.

Month on month, the national rice inventory rose 13.6%, the PSA said.

“In comparison to September 2025, increments were noted in the rice stocks from the households by 17.8% and from the commercial sector by 17.1%. Meanwhile, rice stocks (held by) NFA depositories decreased by 0.2%,” a PSA report said.

The PSA also reported a 6.3% increase in corn inventory to 846,810 MT.

Corn held by the commercial sector accounted for 78.1% of the total, with the remainder held by households.

Month on month, the corn inventory rose 52.5%. — Vonn Andrei E. Villamiel

Palace optimistic about turnaround after infra scandal dents investor confidence 

A view of the central business district of Makati City on July 10. — PHILIPPINE STAR/RYAN BALDEMOR

THE GOVERNMENT is confident in a rebound following the infrastructure corruption scandal and a weak peso, with the economy being propped up by the business process outsourcing (BPO) and tourism industries and migrant worker remittances, the Palace spokesman said.

Press Officer Clarissa A. Castro said at a briefing:

“We remain confident that our government can overcome this, mainly because of the continued support from our BPOs, overseas Filipino workers and the tourism sector,” she said. 

Economic growth likely slowed to 5.3% last quarter as soft government spending, typhoons, and a corruption scandal weighed on growth momentum, according to a median estimate of 18 economists in a BusinessWorld poll.

The Philippine Statistics Authority will release third-quarter gross domestic product data on Nov. 7.

The heavy July rains caused many flood control projects to fail or exposed them as substandard, prompting the President to crack down on public works corruption in his State of the Nation Address.

Legislators and other government officials were allegedly colluding to steal billions of pesos in infrastructure funds.

The President has since ordered cost-cutting across all government agencies, with reductions as large as 50%.

The business community has called for the most egregious offenders to be made an example of after the scandal affected stock prices, with the peso dipping to a record low on Oct. 28.

Share prices fell 1.71% or 101.62 points to 5,828.06 on Monday, a seven-month low, with investors concerned the slowdown in public spending will cause the economy to lose momentum. The broader all-shares index slipped 1.23% to 3,548.90.

Analysts have expressed concerns about government underspending, with only P1.46 trillion of the P1.6 trillion in funding disbursed during the quarter.

Inflation is expected to rise slightly to around 1.8% in October from 1.7% in September, still within the Bangko Sentral ng Pilipinas’ forecast range of 1.4% to 2.2% and below its 2-4% target band. — Chloe Mari A. Hufana

ARTA, Ombudsman in deal to clear case backlog

THE Anti-Red Tape Authority (ARTA) and the Office of the Ombudsman said they signed an agreement to expedite the investigation of red-tape violations and alleged corruption.

The memorandum of agreement (MoA), signed during the Ease of Doing Business Convention on Tuesday, seeks to ensure “the rendering of assistance by the ARTA to the Ombudsman in the investigation of alleged red-tape related infractions and corruption by public officials and public servants.”

Under the agreement, the Ombudsman will incorporate ARTA findings in its investigation process, ARTA Director General Ernesto V. Perez said.

In a speech, Ombudsman Jesus Crispin C. Remulla said: “We will see (the impact of the collaboration) in the next few months, the next few days, as we get all the information about the corruption that happened during the flood control mess, ” he said.

Around 30 cases linked to the Department of Public Works and Highways (DPWH) are under preliminary investigation, with more expected to come, Mr. Remulla said.

“The DPWH is a problem in itself right now. And we are getting all the information. We’re processing the data,” he said. 

Mr. Remulla also flagged the Bureau of Internal Revenue and Bureau of Customs as the source of the most severe problems.

“The bigger problems come with the revenue streams of government,” he said in his speech. “Everybody knows they’re corrupt but no one’s done anything about it. We will do something about it.” — Beatriz Marie D. Cruz

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