CHR, DoLE roll out program for workers facing labor abuses

May 2, 2025 | 12:02 am

THE Commission on Human Rights (CHR) and the Department of Labor and Employment (DoLE) on Thursday rolled out an economic assistance program designed for workers impacted by labor rights violations.

The new Labor, Intervention, Financial, and Economic (LIFE) Assistance Program, launched as the country celebrates Labor Day, offers support to both workers and their families.

This includes livelihood aids, scholarships, internships, skills training under the Technical Education and Skills Development Authority, and referrals to relevant government services, the CHR said in a statement.

“CHR and DoLE affirm their joint commitment to ensure that Filipino workers and their families can live with dignity — free from fear and empowered to claim their rights,” it added.

The initiative specifically targets individuals who have faced threats, violence, or retaliation linked to labor organizing and rights advocacy. It is designed to meet their immediate economic needs and provide long-term recovery support.

The LIFE Assistance Program reflects broader government efforts to address international labor rights concerns and improve worker protection.

It builds on the Memorandum of Agreement and Data Sharing Agreement signed between CHR and DoLE in October 2023, which forms part of the Philippines’ response to observations made by the International Labour Organization’s High-Level Tripartite Mission.

Under the program, CHR is expected to submit a nationwide list of investigated labor-related cases for DoLE’s review.

Eligible beneficiaries will be identified based on this list and formally recognized during the ceremonial awarding on Labor Day.

The joint program also aligned with Executive Order No. 23, signed in 2023, which reinforces the state’s obligation to protect workers’ rights to organize. It also mandates coordinated responses among government agencies.

Labor rights protection has been identified as a key priority of the CHR’s sixth Commission en banc. It reiterated that economic security is integral to the full realization of human rights and expressed support for more responsive, rights-based interventions across government. — Chloe Mari A. Hufana

BoJ keeps rates unchanged, cuts growth forecasts on US tariffs hit

May 2, 2025 | 12:02 am

BoJ-Bank_of_Japan-wikipedia — WIKIPEDIA.ORG

TOKYO — The Bank of Japan (BoJ) kept interest rates steady and sharply cut its growth forecasts on May 1, suggesting uncertainty surrounding US tariffs and the hit to exports could keep policy in a holding pattern for some time.

But the central bank projected inflation would stay roughly on course to hit its 2% target in coming years, a sign that risks from US tariffs could delay, but not derail, its rate hike plans.

As widely expected, the BoJ kept short-term interest rates steady at 0.5% by a unanimous vote.

Given growing headwinds from higher US tariffs, the board slashed its economic growth and inflation forecasts in a quarterly outlook report released after the meeting.

But it said underlying inflation would accelerate after a period of stagnation as a tight job market lifts wages, signaling that the hit from US tariffs was likely to be temporary.

“Japan’s economic growth is likely to moderate as trade and other policies in each jurisdiction slow overseas growth and weigh on corporate profits,” the BoJ said in a statement.

“Thereafter, Japan’s economy will see growth accelerate as overseas economies resume a moderate growth path,” it said.

Under fresh projections, the BoJ cut its economic growth forecast for the fiscal year ending March 2026 to 0.5% from 1.1% projected three months ago. It also slashed its growth forecast to a 0.7% expansion for the following fiscal year from 1% in January.

The BoJ now expects underlying consumer inflation to reach levels consistent with its 2% target around the latter half of fiscal 2026 and onward, the report said, pushing back the timing by around a year from the previous report in January.

“If our economic and price forecasts are realized, we will continue to raise our policy rate,” the BoJ said in a statement.

“Considering extremely high uncertainties over the future course of trade and other policies in each jurisdiction,” however, the BoJ will scrutinize economic price developments and guide policy without preconception, it added.

The BoJ expects core consumer inflation to hit 2.2% in fiscal 2025 and 1.7% in fiscal 2026, then accelerate to 1.9% in fiscal 2027.

“The BoJ appears to be maintaining a rate-hike stance. Given high uncertainty, however, it probably wants to leave itself a free hand on the timing,” said Totan Research chief economist Izuru Kato.

TARIFFS TO HIT GROWTH
Japanese government bond yields and the yen fell after the BoJ’s decision.

“Everything’s been reduced in terms of their forecasts and the market seems to be selling the yen at the moment,” said State Street Tokyo branch manager Bart Wakabayashi.

“The BoJ is taking a step back. They want to see how the data will change or which way it’s pointing once the policies are put in place.”

Rising trade tensions from US President Donald J. Trump’s sweeping tariffs have sent shockwaves through markets and led to a sharp downgrade in the International Monetary Fund’s global growth forecasts.

In the report, the BoJ said higher tariffs would weigh on Japan’s economy by slowing global trade and hurting business confidence through heightened uncertainty and market volatility.

Companies may also start focusing on cutting costs rather than raising wages, it said, but added steady rises in food costs could have second-round effects on underlying inflation.

After a period of slowdown, exports, output and capital expenditure are expected to resume an uptrend, the BoJ said, offering a cautiously optimistic view on the long-term outlook.

“Domestic wage growth in this year’s labor negotiations is expected to exceed 5%, which will support the case for additional interest rate hike,” said Daiwa Institute of Research economist Kanako Nakamura, projecting the next hike to come in the October-December quarter.

The BoJ raised its short-term interest rate to 0.5% in January in the belief the economy was on the cusp of sustainably achieving its 2% inflation target.

While BoJ Governor Kazuo Ueda has signaled the BoJ’s readiness to keep raising rates, Mr. Trump’s tariffs have complicated its decision on when and how far it can hike. — Reuters

Doy Casuela’s legacy and Edwin Bautista’s new chapter at PNB

May 2, 2025 | 12:01 am

On April 29, during Philippine National Bank’s (PNB) stockholders meeting, PNB President Florido “Doy” Casuela officially stepped down, passing the leadership to Edwin Bautista, former Union Bank of the Philippines, Inc. president.

A seasoned banking veteran, Doy Casuela served as president of Land Bank of the Philippines and Maybank Philippines. PNB was a big turnaround story in the banking industry after it suffered a P13-million loss in the year 2000 and was then placed under close supervision by the Bangko Sentral ng Pilipinas (BSP). Doy was initially tapped as BSP consultant in the early 2000s to “look over” PNB’s operations and was later elected director and dhair of the bank’s Executive Committee until he assumed the presidency in 2022, succeeding Wick Veloso. In the challenging years amid the coronavirus pandemic, with Doy’s experience and in-depth knowledge of the bank’s operations, he was thrown like a duck to swim in the water. He knew what to do and did it with passion, earning him the nickname “BB,” short for Benjamin Button or the fictional character who aged in reverse. Yes, Doy has grown stronger and younger while steering PNB through challenging times.

Where does PNB stand today? It reported a net income of P21 billion in 2024, up from P18 billion in 2023. For the first time since 2016, PNB declared cash dividends of P2.78 per share. Property dividends worth P23.9 billion were declared in 2021. PNB’s capital position is one of the strongest in the industry with a capital adequacy ratio of 20.1%, and return on equity strong at 10.39%. PNB is also a Four Golden Arrow awardee in the ASEAN Corporate Governance Scorecard. PNB’s mobile banking app received the Excellence in Customer Service Innovation award at The Digital Banker’s Digital CX Awards. The bank’s “Every Step Together” campaign was recently recognized by the Catholic Mass Media Awards as Best Branded Digital Ad.

In the “last two minutes” of President Doy’s term, PNB earned Two Triple A awards from The Asset for the bank’s remarkable commitment to sustainable financing — the Best Sustainability Bond – Financial Institution award for issuing a $300-million sustainability bond, and for PNB Capital as a domestic underwriter for the Best IPO Award of Citicore Renewable Energy Corp.’s P5.3-billion initial public offering.

Meanwhile, Moody’s Investors Service recently raised PNB’s credit rating to “Baa2” from “Baa3” with a “stable” outlook.

The bank’s first-quarter net income also went up by 15% to P6.1 billion.

PNB’s stock price, which was at the P18-P20 level for some time, is now more than double at above P40 per share, closing at P48 each on April 30.

So, well done, President Doy, Mr. “BB”!

Edwin Bautista, who played a key role in UnionBank’s digital transformation, brings with him a different background and experience. A marketing professional from Procter & Gamble, he was recruited by Citibank in the 90s during the banking liberalization, which saw the entry of new foreign banks into the Philippines. Citibank, which did not have competition then, realized it had to learn marketing from the consumer experts. Edwin was one of those hired to instill the marketing culture at Citibank while he learned the basics of banking and risk management.

In the ’90s, dollar transfers within Manila took 45-60 days as they still had to be routed to the United States. Edwin was Citi’s cash management head back then who spearheaded the move towards the Philippine Domestic Dollar Transfer Service System (PDDTS), a revolutionary development that resulted in dollar transfers online and real time, meaning instantly, and is still managed by Citibank to this day.

Even with limited branches of just three, Citi was highly rated in cash management through the use of technology. How much more if it had many branches? Even at that time, Edwin already “eyed” PNB with its large branch network. Edwin became Citi’s Transaction Banking Head, then later joined UnionBank and became its president, leading its digital transformation.

“It’s a great day. I love PNB!” said Edwin when asked about his first day at the bank

PNB’s diversified board of directors now includes six women (40%). Four are independent directors, and there are a total of five independent directors (30%). The members are Chairman Emeritus Kapitan Lucio Tan, Chairman Edgar Cua, Vice-Chairman Lucio Tan III, President Edwin R. Bautista, Judith V. Lopez (new), Chester Y. Luy, Geocel D. Olanday (new), Isabelita M. Papa (new, lead independent director), Sheila T. Pascual, Wilfrido E. Sanchez, Eusebio V. Tan, Michael G. Tan, Vivienne K. Tan, Maria Cyd N. Tuaño-Amador, Marcia Uy (new) and Cesar L. Villanueva (new).

PNB is in a strong financial position today. Headed by tech-savvy CEO Edwin as its new president, with Chair Ed and Vice Chair LT III, Doy in his new role as adviser, and PNB’s dedicated board and advisers, it is poised for an even stronger future! Congratulations, PNB!

The views expressed herein are the author’s own and does not necessarily reflect the opinion of her office as well as FINEX.

Flor G. Tarriela is a banker and an environmentalist/gardener.

OceanaGold says P1.6-B payment to gov’t highlights mining’s economic role

May 2, 2025 | 12:01 am

OCEANAGOLD (Philippines), Inc. has remitted P466.86 million in additional government share (AGS) to the national government, bringing its total payment over the past two years to P1.6 billion, the company said on Thursday.

The company’s remittance is on top of P870 million in excise taxes and P512 million in local taxes and fees paid in 2024, it said in a statement.

“This significant contribution of almost P1.6 billion in cumulative AGS payments exemplifies the substantial economic benefits that responsible mining can bring,” OceanaGold President and General Manager for External Affairs and Social Performance Joan Adaci-Cattiling said.

The government and OceanaGold share the net revenue from the Didipio gold-copper mine in Luzon, with the government receiving 60% and OceanaGold receiving 40%.

“This arrangement is based on the principle that the government should receive a fair economic return for its mineral resources, while OceanaGold is entitled to a reasonable return on its investments,” the company said.

All taxes and fees paid to the government are deducted from the government’s share of net revenue.

In addition to the government remittance, the company said it also made investments through its development funds.

In 2024, OceanaGold invested P203 million and P102 million in development initiatives in Nueva Vizcaya and Quirino. — Justine Irish D. Tabile

Silicon Valley’s hype cycle is taking off in China

May 2, 2025 | 12:01 am

FROM the breathless headlines emerging from China’s electric vehicle (EV) industry in recent months, you’d think the laws of physics are different on the two sides of the Pacific.

In the US, Ordinary Joe is stuck in the slow lane in the Tesla Model S, with a measly 348 miles of driving range — or less on a cold day when you have the heating on. Meanwhile in China, Extraordinary Zhou can go 1,050 kilometers (656 miles) in her Nio, Inc. ET7, one of half-a-dozen local EVs with ranges above 700 km.

That’s not all. BYD Co. in March announced a breakthrough in charging, with new capabilities that could pump 400 km of range into a battery in five minutes, making recharging an EV as quick and efficient as refueling a gasoline car. Not to be outdone, Contemporary Amperex Technology Co., or CATL, last week unveiled an even more advanced system that could add 750 km in five minutes.

In the face of this onslaught, non-Chinese EV and battery companies are probably tempted to give up — or even follow President Donald Trump’s self-defeating path of melting down in a morass of tariffs, flickering policy reversals, and nostalgia for the heroic age of gasoline. Before they do, though, it’s worth reflecting on the hype cycle.

The hype cycle has been a perennial of discussions about Silicon Valley ever since the term was coined by Gartner, Inc. analyst Jackie Fenn in 1995, as the excitement over the dot-com bubble was starting to roar. It describes the way new innovations inevitably get talked up to ridiculous levels, before disillusionment sets in. Finally, they develop into mature technologies that are neither as transformative, nor as overrated, as previous stages in the cycle suggested.

China’s tech sector has often seemed more or less immune to this rollercoaster. US executives seem far more likely to extol the groundbreaking potential of Tencent Holdings Ltd.’s WeChat than Tencent itself. Solar panel producers have grown to the scale of the largest independent oil companies without stopping to boast about the fact. The world failed to notice the advances of China’s EV sector until its lead was unbeatable.

That seems to be changing, however.

Take those EV driving ranges. You might think Chinese cars can go further because of unique innovations, but the explanation is more humdrum. In most cases, it comes from offering oversized battery packs in long-range variants, even if most drivers stick to the more limited base models.

On top of that, the Chinese range-testing standard is more lenient than in Europe and the US, so a car that’s rated 300 km in the US would be judged at about 400 km in China. Finally, there is the anchoring effect of the conversion between the imperial and metric systems — 400 km just sounds a lot further than 250 miles, even if it’s an identical distance. Put all those factors together, and China’s technological edge more or less disappears.

It’s a similar story with the charging breakthroughs promised by BYD and CATL. Neither company has detailed how many times their batteries can be fast-charged, for instance — a crucial consideration, since one of the main problems with the practice is the stress that it puts on the cell, drastically reducing its working life and even posing safety issues.

Nor have they given much clue about how dominant these systems are likely to get. The raw numbers suggest they’ll be pretty rare. The full potential of BYD’s technology will require stations packing as much as 1,360 kilowatts of power, more than 10 times typical Chinese fast chargers at present.

BYD has promised to roll out 4,000 stations on that scale, representing an extraordinary 5.44 gigawatts, nearly sufficient to meet the peak-power needs of a city the size of London. The company may well deliver cars capable of occasionally charging at such extraordinary speeds, but even China’s grid would struggle to handle such technology becoming the standard way EV drivers refuel.

That still leaves the mystery of why corporate China is falling in love with hype.

For a Silicon Valley funded through public debt and equity, the hype cycle always served a useful purpose, providing a narrative to persuade investors to back loss-making early-stage technologies, in the hope they’ll become an Alphabet, Inc. or an Amazon.com, Inc. rather than a WeWork, Inc. or a Groupon, Inc.

That’s less of a concern for BYD or CATL, long-established businesses so profitable that they can fund even industry-leading growth plans out of operating cash.

Another factor might be worth reflecting on, however. China’s love of the hype cycle is a relatively recent phenomenon, dating back to January’s global freakout, when DeepSeek blew apart some of the complacent assumptions of the US artificial intelligence industry.

That suggests the explanation is more about government finance than corporate finance. With Trump making tariffs and technological competition a key front in a new cold war against China, companies that were mostly treated with benign neglect by Beijing during their rise are joining the petroleum and aviation industries as major recipients of government funding.

Those sums are relatively small right now: BYD’s operating grants of 10.4 billion yuan ($1.4 billion) last year, the largest received by any car- or battery-maker, were equivalent to about 7.8% of its operating cashflow during the period. Still, they may grow increasingly important as trade tensions close off the export markets.

Silicon Valley companies developed the hype cycle as a way of capturing and maintaining their true masters, America’s stock and bond markets. If China’s clean tech companies are burnishing their images as national champions in the face of a more disruptive global environment, it suggests they’re doing the same — only this time, it’s the government they’re trying to satisfy.

BLOOMBERG OPINION

Stuff to Do (05/02/25)

May 2, 2025 | 12:01 am

1 of 7

Catch the final Marvel Phase Five flick Thunderbolts

THE Marvel Cinematic Universe is closing out Phase Five with its 36^th movie Thunderbolts, which rounds up characters who have been perceived as villains to form an unlikely superhero team. It stars Florence Pugh, David Harbour, Sebastian Stan, Wyatt Russell, Olga Kurylenko, Lewis Pullman, Geraldine Viswanathan, Hannah John-Kamen, and Julia Louis-Dreyfus. Directed by Jake Schreier, it is out now in cinemas nationwide.

Dive into Filipino band Better Days’ new EP

THE band Better Days is back with more catchy and relatable tracks. Composed of Nigel Blue and Nimroi (Nim) Garcia, the Filipino act is celebrating a milestone with the release of their new EP titled What Comes After. The track list goes through the complexities of love through a series of narratives, diving into themes of unreturned affection, one-sided relationships, and the exhilarating highs of romance. An EP launch will also take place at the Sanctuary Cafe & Bar in Quezon City on May 3, 6 p.m. Joining the band are special guests: Jem, Joshua Kim, Nikka from The Vowels They Orbit, and WE GOT sax player Melvin. Admission is free.

Enter the KCC’s student short film contest

THE Korean Cultural Center in the Philippines (KCC) is giving student filmmakers and enthusiasts a round-trip ticket to Busan for its first-ever student short film competition. The grand prize is a trip to attend the world-famous Busan International Film Festival. The contest is part of the 2025 Korean Film Festival, an annual celebration of Korean cinema that brings heartwarming stories and world-class films to Filipino audiences. This year, KCC invites young storytellers to show the world their take on “Korea in the Philippines.” Interested participants can fill out the application form via bit.ly/ReelConnectionsApplication. Deadline for the application is on June 30.

Check out Chinese idol girl group A2O MAY

THE first Chinese idol girl group to chart in the US Top 40 is A2O MAY. They recently released a new single, “BOSS,” a bass-heavy, hip-hop, electronic dance-inspired anthem. It aims to channel “next-generation, girl-boss energy” with deeper vocals, punchy verses, and dance breaks. Formed under A2O Entertainment and guided by producer Soo-man Lee, A2O MAY is made of performers fluent in both Chinese and English: Chenyu, Shijie, Quchang, Miche, and Kat.

Immerse yourself in Steven Soderbergh’s thriller Black Bag

A NEW mystery film is coming to Philippines cinemas with Black Bag, directed by Steven Soderbergh. The spy thriller boasts an all-star cast: Cate Blanchett, Michael Fassbender, Marissa Abela, Tom Burke, Naomie Harris, Regé-Jean Page, and Pierce Brosnan. The Universal Pictures film will be available exclusively at Ayala Malls Cinemas starting May 7.

Listen to Angeline Quinto’s new song

UNDER Universal Records, singer Angeline Quinto has dropped a brand new song titled “Being With You.” The track, filled with the artist’s signature high notes, was originally penned in Korean. It was composed, produced, mixed, and mastered in Korea before being translated into English. The romantic ballad was premiered on TikTok by Ms. Quinto herself, who listened to the finished track with fans online. It is out now on all digital music streaming platforms.

Find out what home and lifestyle brand Anko has to offer

TO CELEBRATE Mother’s Day, Australian home and lifestyle brand Anko is holding a mall event at Glorietta 2’s Activity Center on May 9. Open from 2 p.m. onwards, the activation will have four interactive zones — Wellness, Kitchen, Play & Create, and Beauty — each designed to inspire moms and families in terms of home design. Special guest panelists to lead motherhood-centered talks throughout the day include celebrity moms Iza Calzado and Andi Manzano, alongside Anko Philippines’ country manager Rachel Turner. The store will also launch the rewards program Anko Club, granting exclusive access to the latest updates, special offers, and all things Anko. Visitors to the mall event will also receive Anko goody bags.

Explore Silent Sanctuary’s take on obsessive love

AFTER a two-year wait, Filipino band Silent Sanctuary is returning with a comeback single, titled “Sagad,” released under Universal Records. Inspired by the popular Netflix series You, the song explores the theme of obsessive love, mirroring the intense emotions of the show’s protagonist. It aims to convey a love “that is overwhelmingly consuming yet painfully out of reach.” “Sagad” is now on all digital music streaming platforms.

Hiring an applicant endorsed by the CEO

May 2, 2025 | 12:01 am

We in the human resource (HR) profession think hiring must be based on an objective process. However, sometimes, we can’t do it, like when a chief executive officer (CEO) “forces” us to hire someone without passing through an established evaluation system. How do we handle the situation? — White Linen.

There is no known cure for the allure of subjectivity, except for objectivity when an individual or an organization must follow established rules and procedures to counter the so-called “invisible hands.” As Scottish philosopher Adam Smith (1723-1790) said, the “invisible hands” are deeply woven into the fabric of our society.

Usually, we encounter this happening in a small, family business. So, what can you do?

It depends much on the specific job of this case, the rank and job title, and the reporting responsibility of the person being recommended.

You can’t do much if the job requires unparalleled trust and confidence by the CEO in the person who is about to be hired. It’s their prerogative to hire anyone whom they can trust, like an executive secretary, administrative assistant, bookkeeper, or accountant, among other related jobs.

The issue could become complex, say when the CEO insists on hiring a college undergraduate for a job that requires someone with a bachelor’s degree or with at least three years of corporate experience.

MANAGING THE SITUATION
My solution to this is to view all circumstances in their proper context. For example, when the CEO is being constrained by a “friendly request” from an official of a government regulatory agency or an elected official within the local government unit. If that happens, you have to manage the situation with professionalism, cold neutrality, and the highest form of diplomacy:

One, write a formal letter to the job applicant. Depending on the nature of each job, the letter must be signed by the highest-ranking HR official and the CEO. Emphasize the company’s objective process that if violated may result in an unfair situation and bad precedent. Use courteous language.

Two, document and observe the objective hiring process. Refer to the organization’s policies on objectivity, and commitment to diversity, equality, and inclusion, if not integrity. Stay neutral. Explain that the process is by established criteria that if violated would result in an ethical breach with stockholders or other stakeholders, including a labor union.

Three, suggest an off-the-grid alternative process. If it has become difficult to decline such a job application, arrange for the involvement of other department heads or other executive panel for a regular post. If not, offer a time-based project employment contract that may not exceed six months.

Four, recommend the job applicant to the company’s affiliates. If not, pass it on to a manpower agency or employment cooperative if the job is for a non-management position. It’s an easy and fast-track approach, assuming that the applicant is not the snobbish type.

Five, assess its legal implication. Seek the advice of lawyers if there’s a possible breach of equal employment laws or a potential legal issue on nepotism or employment discrimination that could be filed by current employees or the union who may cry foul about the process.

Six, conduct a background investigation. If you can’t decline the application, the least that you can do is for the applicant to undergo a “strict” background check. Require them to submit the established pre-employment documents, including a clearance from the court of law, police, and the National Bureau of Investigation.

STAYING DISCREET
The HR department cannot disobey the CEO. However, HR can solve this issue without lifting a finger by emphasizing in so many discreet ways the need to uphold organizational integrity. HR can do this by sending an e-mail with a respectful tone to the CEO about the situation and the organizational predicament.

Reinforce that HR’s actions are objective and process driven. If it is done properly, the CEO may no longer force the issue given HR’s concerns. But again, let the CEO decide on the alternative options depending on the nature of the job being offered and the personality of a government official who is making the recommendation.

Bring Rey Elbo’s popular leadership program called “Superior Subordinate Supervision” to your management team. Learn through a unique and time-tested training methodology. Send a direct message on Facebook, LinkedIn, X or e-mail elbonomics@gmail.com or via https://reyelbo.com

Analysts’ April inflation rate estimates

May 2, 2025 | 12:00 am

INFLATION likely remained below 2% for a second straight month in April, analysts said, as the decline in key food prices such as rice kept the headline figure at bay. Read the full story.

Market turns to data for leads after volatile April

May 1, 2025 | 9:00 pm

KEY economic data and corporate results could help Philippine shares sustain their momentum this month after global trade concerns roiled markets in April, even dragging the local stock benchmark to a multi-year low.

The bellwether Philippine Stock Exchange index (PSEi) ended April in the green as it rose by 1.64% or 102.80 points to close at 6,354.99 on Tuesday.

Month on month, the PSEi was also up by 2.82% or 174.27 points from its 6,180.72 finish on March 31.

The market was closed on Thursday for Labor Day.

“The market managed to eke out a gain in April despite market volatility brought about by US President Donald J. Trump’s tariffs,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message.

“While we expect the same issue to play a part in driving the market this coming month, investors will also likely consider domestic factors like first quarter earnings and gross domestic product (GDP) numbers,” Mr. Garcia said. “May is historically a weak month, so that’s something that should be accounted for as well. However, our outlook for the rest of the year remain moderately bullish, underpinned by what we believe is an undeserved undervaluation of Philippine stocks.”

On April 2, which Mr. Trump dubbed as “Liberation Day” for the US, Washington announced that it will impose “reciprocal” tariffs on most of its major trading partners, including the Philippines.

The PSEi on April 7 plummeted to 5,822.85, its worst finish in over two-and-a-half years or since it closed at 5,783.15 on Oct. 3, 2022, as Mr. Trump doubled down on his directive, sparking trade war fears.

However, Mr. Trump suspended the higher levies for 90 days starting April 9, instead implementing a blanket 10% tariff until July. Countries are now negotiating trade deals with the US.

DragonFi Securities, Inc. Equity Research Analyst Jarrod Leighton M. Tin said in a Viber message that easing trade concerns allowed the PSEi to reverse the losses seen early last month.

“The market was further buoyed by a 25-basis-point rate cut and encouraging first-quarter 2025 earnings from key index heavyweights, contributing to a strong monthly close,” Mr. Tin said. The Bangko Sentral ng Pilipinas on April 10 resumed its easing cycle after an unexpected pause in February, bringing the policy rate to 5.50%.

“Looking ahead to May, investors will be closely watching for continued progress in global trade de-escalation. Trade negotiations between the Philippines and the US will also be in focus. A successful push for lower tariffs could provide a significant lift to market sentiment,” he added.

For this month, the PSEi may continue to trade between 6,100 to 6,500 with an upside bias, Unicapital Securities, Inc. Research Head Wendy B. Estacio-Cruz said in a Viber message. “Some catalysts that we see are April inflation rate and first quarter GDP growth rate.”

The Philippine Statistics Authority will release April inflation data on May 6 and first quarter GDP data on May 8. — Revin Mikhael D. Ochave

China patrols disputed shoal amid drills between Philippines and US

May 1, 2025 | 8:48 pm

scarborough-Kalayaan — PHILSTAR FILE PHOTO

By Kenneth Christiane L. Basilio, Reporter

CHINA’S coast guard said it conducted law enforcement patrols around the disputed Scarborough Shoal and nearby waters in the South China Sea on Wednesday.

The coast guard said it had strengthened patrols since the start of April, and carried out tracking, surveillance and interception operations “in accordance with laws and regulations,” according to a report from a Chinese military news website.

It said it had warned and expelled “illegal vessels” that veered within its waters to protect China’s sovereignty and interests, China Military Online reported late Wednesday.

“Since April, the CCG (China Coast Guard) has continuously strengthened law enforcement patrols in the territorial waters of China’s Huangyan Dao (Scarborough Shoal) and its surrounding areas,” the coast guard said.

Spokespersons of the Philippines’ Foreign Affairs department, military and coast guard did not immediately reply to separate Viber messages seeking comment.

Tensions between the Philippines and China over the South China Sea have worsened in the past year as Beijing continues to assert its sweeping claims, including on Scarborough Shoal, a key fishing ground claimed by both nations that it has controlled since 2012.

The shoal is 240 kilometers west of the main Philippine island of Luzon and is about 900 kilometers from Hainan, the nearest major Chinese landmass.

The Philippines took the dispute over Scarborough Shoal to a United Nations-backed tribunal in 2013, which ruled in 2016 that China had interfered with Filipino fishermen’s rights to access the area. Beijing has since deployed a fleet of coast guard vessels to enforce its claim despite the ruling.

Chinese patrols around Scarborough Shoal coincide with annual joint combat drills by Philippine and US forces, aimed at improving interoperability and preparedness to address shared regional security concerns. Beijing has said the drills are provocative.

More than 14,000 Filipino and American soldiers are participating in the Balikatan (shoulder-to-shoulder) exercise, which are held in areas of the Philippine facing regional flashpoints like the South China Sea and Taiwan and feature advanced US missile systems. It began on April 21 and will run until May 9.

The combat exercises will see their forces rehearse how to repel an invasion and assert control over vital maritime structures in the western and northern Philippines.

“Coming up next week, we will continue our full battle test to validate crisis response procedures, defense plans and our bilateral coordination from the operational level all the way down to the tactical edge,” US Lieutenant General Michael S. Cederholm, commander of the I Marine Expeditionary Force, told a news briefing at the Philippine military’s headquarters on Wednesday.

‘NOT JUST AN EXERCISE’
Started in 1991, the Balikatan exercise has evolved into Southeast Asia’s premier combat rehearsal as the Philippines and US seek to strengthen security cooperation and enhance force interoperability in response to China’s growing assertiveness in the region.

“It is not just an exercise,” Philippine Brigadier General Michael G. Logico, assistant exercise director for this year’s Balikatan exercises, told the same briefing. “It also provides a broader message to the rest of the region… that we are here to maintain stability within the region.”

The South China Sea has become a flashpoint in Southeast Asia as China continues to assert sovereignty over almost the entire sea, seen as a vital global trade route that is also believed to be mineral-rich.

“The unique location of the Philippines makes it crucial to international trade,” Mr. Logico said.

The US has deployed its advanced missile systems for the drills, including a mobile anti-ship missile system, a portable artillery rocket system, a mid-range capability missile battery and a short-range air defense platform.

Asked if the anti-ship Navy-Marine Expeditionary Ship Interdiction System (NMESIS) would be kept in the country after the joint combat drills, Mr. Cederholm said: “I don’t talk about when we go out.”

“These are capabilities that the US Marine Corps and the Army are introducing all over the Pacific,” he said. “They accompany units, and when those units rotate back, the capabilities may stay or they may go with them.”

“We only keep weapon systems with the approval of the Philippine government.”

Last year, the US left an intermediate-range missile system called the Typhon Mid-Range Capability (MRC), which can launch missiles that can reach the Chinese mainland, in the Philippines after the 2024 Balikatan exercise. The deployment and its subsequent stay in the country has since drawn sharp criticism from Beijing.

Mr. Logico said the Philippines is looking at letting its anti-ship cruise missile system participate in combat drills once India completes its deliveries.

“It is our ultimate goal, once the delivery of the BrahMos system has been complete, that we will integrate that with either the NMESIS or the MRC for its full, combined exercises,” he said.

The Philippines placed three orders for Indian-made BrahMos cruise missile batteries worth $375 million (P21 billion) in 2022 as part of its military modernization efforts, and received the first batch last year. It will soon take delivery of a second batch after it was shipped late last month.

The BrahMos missile system, with a range of 290 kilometers, can achieve supersonic speeds and can be launched from submarines, ships, aircraft or land-based platforms.

Meanwhile, the Armed Forces of the Philippines (AFP) plans to launch a new command later this year to oversee combat exercises with allies, as it seeks to bolster defense coordination amid evolving security challenges, its spokesperson Francel Margareth Padilla-Taborlupa told reporters on the sidelines of the briefing on Wednesday.

Called the AFP Strategic Command, military chief Romeo S. Brawner, Jr. said last week it would coordinate combat drills with allies and is patterned after Japan’s Joint Operations Command structure.

“We are doing three things: We are collaborating, calibrating and coiling like a spring,” she said. “With the creation of this command, we are getting ready [for] any eventuality.”

Marcos calls for regional wage increases, bucks legislated wage hike

May 1, 2025 | 8:47 pm

PBBM Marcos — PHILIPPINE STAR/NOEL B. PABALATE

By Chloe Mari A. Hufana, Reporter

PHILIPPINE President Ferdinand R. Marcos, Jr., on Thursday called for region-specific wage increases, bucking the labor sector’s call for a P150 to P200 legislated pay hike to keep up with inflation.

In a Labor Day event in Pasay City, the President said pay increases should be studied carefully because they affect businesses, jobs and the economy.

“We hear the call of our workers for better wages and assure you that your concerns are being addressed through the Regional Tripartite Wages and Productivity Boards (RTWPBs),” he said. “The government stands firm in its commitment to protecting and advancing workers’ welfare while promoting inclusive economic development.”

Since June 2024, 16 regions in the country have implemented minimum wage increases. Twenty-eight wage orders have been approved, including pay hikes for domestic workers.

Meanwhile, the Labor department said Metro Manila’s wage board would start reviewing entry-level pay rates this month, as the next minimum wage determination cycle begins.

“The National Capital Region (NCR) will be the first to begin its wage review this May 2025,” Labor Assistant Secretary and Bureau of Local Employment chief Patrick P. Patriwirawan, Jr. said in a Viber chat in Filipino.

“Per the President’s directive during the 2024 Labor Day for a timely review of minimum wage rates, our RTWPBs ensured to begin the review of minimum wage rates within 60 days from the anniversary date of their latest wage order,” he added.

NCR, which has the highest cost of living, also has the highest daily minimum wage of P645 for nonfarm workers. The last pay hike in the capital region took effect in July last year.

In contrast, regions such as the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) have considerably lower minimum wages, with rates for agricultural workers as low as P316.

On Feb. 19, 2024, the Senate approved a bill for a P100 daily wage increase for all minimum wage earners in the private sector, regardless of region or industry. In January, the House of Representatives labor committee endorsed a consolidated bill proposing a P200 across-the-board daily wage increase for private sector workers.

Labor groups decried the stalled legislated wage hike, arguing that it would help Filipinos cope with the rising cost of living, even if inflation has eased to 1.8% in March, the lowest in almost five years.

Kilusang Mayo Uno and allied organizations in a statement called for a daily minimum wage of P1,200, an amount calculated by think tank IBON Foundation as the minimum needed to adequately feed, clothe and shelter a family of five.

It said the increase is a matter of justice.

The group also challenged candidates in the midterm elections on May 12 to implement a living wage as a priority policy.

Meanwhile, the Federation of Free Workers (FFW) renewed its call for reforms through a collective political initiative branded as the “Labor Vote.”

With less than two weeks before the elections, FFW President Jose Sonny G. Matula and allied unions sought to transform workers’ longstanding grievances into political power.

In a separate statement, Mr. Matula decried the government’s failure to engage organized labor in dialogue, accusing the government of ignoring key demands such as living wages, union rights, public service reform, wealth taxation, climate action and anti-corruption measures.

“The system favors the rich,” Mr. Matula said, blaming elite-dominated politics and big business for marginalizing labor and eroding democratic institutions.

He said the lack of meaningful engagement with workers, especially Mr. Marcos’s alleged failure to meet with labor groups since taking office, has deepened inequality and public disenchantment.

Labor groups are pushing a nine-point agenda centered on social justice, sustainable development and political accountability.

Marcos: SSS to offer low-interest salary, calamity loans

May 1, 2025 | 8:46 pm

PRESIDENT Ferdinand R. Marcos, Jr., on Thursday said the state-run Social Security System (SSS) would cut interest rates on salary and calamity loans starting July as part of efforts to ease borrowing costs for workers amid rising prices.

“Starting July 2025, [SSS] members with a clean record will be able to avail themselves of SSS loans at lower interest rates,” he said in Filipino at a Labor Day event in Pasay City.

“The interest rate will go down to 8% for salary loans and 7% for calamity loans. These rates have been reduced from the previous 10%,” he added.

Starting September, the spouses of deceased pensioners can also apply for loans of as much as P150,000.

“The SSS is also coordinating with several financial institutions to explore the possibility of establishing a microcredit loan facility,” the President said. “This aims to address the urgent financial needs of its members.”

The reduced interest rate will be for members who have not availed themselves of penalty condonation in the past five years, the SSS said in a statement.

It added that the microcredit facility for SSS members would have a tenor of 15 to 90 days.

“When we see a framework for this micro-credit program, we will implement it as soon as possible,” SSS President and Chief Executive Officer Robert Joseph M. De Claro said in the statement.

Federation of Free Workers (FFW) President Jose Sonny G. Matula welcomed the move, but urged for much lower interest rate cuts.

“The government can still do better; it can still bring this down to 5%,” he said in a Viber chat. “Many workers have already pawned their ATM (automated teller machine) cards for loan sharks, so even with this loan relief, it’s not enough.”

He said the real solution is to increase wages. Labor groups have been calling for a legislated wage hike of P150 to P200 to keep up with inflation.

“Let’s be clear: Workers shouldn’t have to rely on loans just to get by. It would be better if there were no need to borrow just to survive,” he said.

“The better solution lies in addressing the root of the problem — low wages. We urge the government to go beyond debt relief and pursue a national living wage, job security and stronger social protection systems,” he added.

He called the SSS a “good band-aid,” adding that workers need “surgery-level” reforms.

Rising prices of essential goods such as food, fuel and transportation have placed increasing pressure on household budgets, particularly for minimum wage earners and low-income families. — Chloe Mari A. Hufana