Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 483

Apple eyes using AI to design its chips, technology executive says

SAN FRANCISCO – Apple is interested in tapping generative artificial intelligence to help speed up the design of the custom chips at the heart of its devices, its top hardware technology executive said in private remarks last month.

Johny Srouji, Apple’s senior vice president of hardware technologies, made the remarks in a speech in Belgium, where he was receiving an award from Imec, an independent semiconductor research and development group that works closely with most of the world’s biggest chipmakers.

In the speech, a recording of which was reviewed by Reuters, Srouji outlined Apple’s development of custom chips from the first A4 chip in an iPhone in 2010 to the most recent chips that power Mac desktop computers and the Vision Pro headset.

He said one of the key lessons Apple learned was that it needed to use the most cutting-edge tools available to design its chips, including the latest chip design software from electronic design automation (EDA) firms.

The two biggest players in that industry – Cadence Design Systems CDNS.O and Synopsys SNPS.O – have been racing to add artificial intelligence to their offerings.

“EDA companies are super critical in supporting our chip design complexities,” Srouji said in his remarks. “Generative AI techniques have a high potential in getting more design work in less time, and it can be a huge productivity boost.”

Srouji said another key lesson Apple learned in designing its own chips was to make big bets and not look back.

When Apple transitioned its Mac computers – its oldest active product line – from Intel’s chips to its own chips in 2020, it made no contingency plans in case the switch did not work.

“Moving the Mac to Apple Silicon was a huge bet for us. There was no backup plan, no split-the lineup plan, so we went all in, including a monumental software effort,” Srouji said. – Reuters

US FDA approves Gilead’s twice-yearly injection for HIV prevention

RAGHAVENDRA V KONKATHI-UNSPLASH

The U.S. Food and Drug Administration on Wednesday approved Gilead Sciences GILD.O lenacapavir, a twice-yearly injection, for preventing HIV infection in adults and adolescents at high risk of contracting the deadly virus.

Investors and AIDS activists had been eagerly awaiting the regulatory decision for the drug seen as convenient enough to help end the 44-year-old HIV epidemic.

It will be sold under the brand name Yeztugo in the U.S. at a list price of $28,218 a year.

Lenacapavir, part of a class of drugs known as capsid inhibitors, proved nearly 100% effective at preventing HIV in large trials last year, raising new hope of interrupting transmission of the virus that infects 1.3 million people a year.

Yeztugo “will only be as effective as it is accessible and affordable,” Kevin Robert Frost, CEO of the Foundation for AIDS Research, said in a statement, calling on Gilead and the U.S. government to make sure people who want lenacapavir can get it.

Gilead said it is working to secure health insurer coverage. It said it will provide co-pay assistance for eligible insured people, and the drug may be available free of charge for some under its program for the uninsured.

Medications to prevent HIV, known as pre-exposure prophylaxis, or PrEP, are widely available. But most are daily pills, including low-cost generic versions of Gilead’s older drug Truvada, that require strict adherence to be effective. Gilead said Yeztugo is priced in line with other branded drugs.

“This is a milestone moment,” said Gilead Chief Executive Daniel O’Day of the approval.

“We believe that lenacapavir is the most important tool we have yet to bend the arc of the epidemic and move this epidemic into the history books,” O’Day said.

Availability of a twice-yearly HIV prevention tool is “a huge advance,” that could help change the course of the epidemic, Dr. Raphael Landovitz, director of the UCLA Center for Clinical AIDS Research & Education, said in an email. But he said the product’s high launch price “is almost certainly going to complicate payor coverage and access.”

Gilead has plans for a rapid launch in the United States as well as a wider rollout of the drug in collaboration with global partners.

Gilead’s chief commercial officer, Johanna Mercier, said the company’s “end game” is to normalize PrEP usage, both in the United States and other countries, including low-income African nations where the virus is most prevalent.

Citi Research analyst Geoff Meacham said he expects Yeztugo’s launch to be slow and steady, reaching annual sales of $2.8 billion by 2030.

Mercier said she expects around 75% of U.S. insurers, including government health plans, will cover lenacapavir for PrEP within about six months, with the number rising to 90% within 12 months of launch.

The drug is currently sold as a treatment in the U.S. under the brand name Sunlenca for patients with advanced disease that has become resistant to other drugs.

 

PEPFAR CUTS

In December, the President’s Emergency Plan for AIDS Relief (PEPFAR) under then-President Joe Biden signed an agreement with the Global Fund to Fight AIDS, Tuberculosis and Malaria to provide the treatment to as many as 2 million people for three years if it won U.S. regulatory approval for prevention.

That would allow for unprecedented early access to a state-of-the-art treatment, as six generic drugmakers that have licensed the product from Gilead gear up for production of low-cost versions in 120 resource-limited countries.

AIDS activists have viewed the drug as a way to significantly slow the epidemic, but cuts to PEPFAR by the Trump administration have raised concerns about the U.S. government’s commitment to the rollout.

O’Day acknowledged that the changes have been “challenging,” but said the company has continued to have discussions with both the Global Fund and PEPFAR.

“I believe that there will be sources of funding for this, and that these organizations will prioritize this type of prevention,” he said. – Reuters

US judge invalidates Biden rule protecting privacy for abortions

RACOOL_STUDIO-FREEPIK

A federal judge on Wednesday struck down a rule adopted by the administration of former President Joe Biden that strengthened privacy protections for women seeking abortions and patients who receive gender transition treatments.

U.S. District Judge Matthew Kacsmaryk in Amarillo, Texas, said the U.S. Department of Health and Human Services exceeded its powers and unlawfully limited states’ ability to enforce their public health laws when it adopted the rule last year.

The rule prohibits healthcare providers and insurers from giving information about a legal abortion to state law enforcement authorities who are seeking to punish someone in connection with that abortion.

“HHS lacked clear delegated authority to fashion special protections for medical information produced by politically favored medical procedures,” wrote Mr. Kacsmaryk, who was appointed by President Donald Trump, a Republican, during his first term.

Mr. Kacsmaryk in December had blocked HHS from enforcing the rule against a Texas doctor who had brought the lawsuit, Carmen Purl, pending the outcome of the case. Wednesday’s decision blocks the rule nationwide.

HHS and Alliance Defending Freedom, a conservative Christian legal group that represents Purl, did not immediately respond to requests for comment.

The Biden administration issued the rule as part of its pledge to support access to reproductive healthcare after the conservative-majority U.S. Supreme Court in 2022 overturned the 1973 Roe v. Wade ruling that made access to abortion a constitutional right nationwide.

It came in response to efforts by authorities in some Republican-led states that ban abortion, including Texas, to restrict out-of-state travel for abortion.

Texas has filed a separate lawsuit challenging the rule, which is pending in federal court in Lubbock, Texas. HHS in a court filing last month said agency leadership appointed by Trump is evaluating its position in this case.

Mr. Biden, a Democrat, said in announcing the rule that no one should have their medical records “used against them, their doctor, or their loved one just because they sought or received lawful reproductive health care.” – Reuters

Putin on Iran, Khamenei, regime change, Ukraine and NATO

ST PETERSBURG, Russia – Russian President Vladimir Putin made the following comments to senior news agency editors on the conflict between Iran and Israel, NATO and the war in Ukraine.

The remarks were translated from Russian by Reuters reporters.

 

ASKED ABOUT HIS REACTION IF ISRAEL AND THE UNITED STATES KILLED IRANIAN SUPREME LEADER AYATOLLAH ALI KHAMENEI:

“If I may, I hope that this will be the most correct answer to your question. I do not even want to discuss this possibility. I do not want to.”

“I hear all this, but I don’t even want to discuss it.”

 

ON POSSIBLE REGIME CHANGE IN IRAN:

“You always need to look at whether the goal is achieved or not when starting something. We see that today in Iran, with all the complexity of the internal political processes taking place there, we are aware of this, and I think there is no point in going deeper, but nevertheless there is a consolidation of society around the country’s political leadership. This happens almost always and everywhere, and Iran is no exception. This is the first thing.

“The second thing that is very important is that everyone is talking about it, I will only repeat what we know and hear from all sides, these underground factories, they exist, nothing has happened to them. And in this regard, it seems to me that it would be right for everyone to look for ways to end hostilities and find ways for all parties to this conflict to come to an agreement with each other in order to ensure both Iran’s interests, on the one hand, for its nuclear activities, including peaceful nuclear activities, of course (I mean peaceful nuclear energy and the peaceful atom in other areas), as well as to ensure the interests of Israel from the point of view of the unconditional security of the Jewish state. This is a delicate issue, and, of course, you need to be very careful here, but in my opinion, in general, such a solution can be found.”

 

ON SUPPORTING IRAN:

“We are in contact with our Iranian partners on an ongoing basis. Today in contact. I think tomorrow and the day after tomorrow. We continue our relationship.

“And secondly, as I have already said, our specialists are working in Bushehr. 250 people and other business travelers. The total number can reach 600. And we’re not leaving. Isn’t that support? Iran has not asked us for any other support.”

 

ON HELPING IRAN WITH WEAPONS:

“We once offered our Iranian friends to work in the field of air defense systems, but our partners didn’t show much interest then, and that’s it. As for the agreement you mentioned about the strategic partnership, there are no articles related to the defense sphere… And thirdly, our Iranian friends don’t even ask us to do this. So there’s practically nothing to discuss.”

“Our proposal was to create a system, not separate supplies, but a system. We eventually discussed this once, but the Iranian side didn’t show much interest in it, and it all died down. As for individual deliveries, yes, of course, we carried out these deliveries at one time. This has nothing to do with today’s crisis. It was what is called regular cooperation in the military-technical sphere. And within the framework of international norms.”

 

ON RELATIONS WITH U.S. PRESIDENT DONALD TRUMP:

Regarding a possible meeting with Mr. Trump, it would certainly be extremely useful. I agree with the President of the United States – it must, of course, be prepared and end with some positive results… We have great respect for his intention to restore relations with Russia in many areas of security and economic activity.

“There are already contacts between our large companies that want to return. This, by and large, inspires such a certain restrained optimism. And I hope that both the President of the United States and his inner circle will see and hear this. And together with business representatives, decisions will be made aimed at restoring Russian-American relations.”

 

ON NATO:

“We do not consider any NATO rearmament to be a threat to the Russian Federation, because we are self-sufficient in terms of ensuring our security. And we are constantly improving our armed forces and our defensive capabilities. Whatever NATO does, of course, it creates certain threats, but we will stop all these threats that will arise. There is no doubt about it. In this sense, any rearmament and budget increase to 5% of the GDP of NATO countries makes no sense.

“Secondly. Over the centuries, unfortunately, in the West, from time to time, for decades, the question of the threat from Russia has always arisen. It was so convenient for the Western elites to build their internal policy, because on the basis of an imaginary threat from the east, they could extort money from taxpayers and all the time explain their own mistakes in the field of economics by the threat from the east.

“If the NATO countries want to further increase their budget, well, that’s their business. But it won’t do anyone any good. Of course, they will create additional risks. Well, yes, they will. But it’s not our decision. I think this is completely irrational and pointless. And, of course, there are no threats from Russia. It’s just nonsense.”

 

ON RELATIONS WITH THE WEST:

“It is clear that the current crisis in relations between Russia and Western Europe began in 2014. But the problem is not that Russia annexed Crimea, but that Western countries contributed to the coup in Ukraine. We’ve heard all the time before: you have to live by the rules. By what rules? Well, what kind of rule is this when three states, France, Germany, and Poland, came to Kyiv and, as guarantors, signed a paper of agreements between the opposition and the authorities led by President (Viktor) Yanukovich. A few days later, the opposition launched a coup. And no one even sneezed, as if nothing had happened.

“And then we hear: we have to live by the rules. What are the rules? What are you thinking of? Do you write rules for others, but you’re not going to follow anything yourself? Well, who’s going to live like this? That’s where the crisis started. But not because Russia acted from a position of strength.

“Our Western partners have always acted, at least from a position of strength, after the collapse of the Soviet Union. Because the world order after World War Two was based on a balance of power between the victors. And now one of the winners is gone – the Soviet Union has collapsed. Well, the Westerners began to rewrite these rules for themselves. What are the rules?

 

ON WHETHER HE HAD MADE MISTAKES IN HIS TIME IN POWER:

“Let him who is without sin cast the first the stone. Let’s leave it at that.”

 

ON MEETING UKRAINIAN PRESIDENT VOLODYMYR ZELENSKIY:

“We are ready to meet, as I said, by the way, I am ready to meet with everyone, including Zelenskiy. Yes, that’s not the question.

“If the Ukrainian state trusts someone to negotiate, for God’s sake, let it be Zelenskiy. That’s not the question. The question is who will sign the documents… When dealing with serious issues, it is important for us not to have a propaganda component, but a legal one.”

“But the point must be made, the signature must be from the legitimate authorities, otherwise, you know, the next one will come and throw it all in the bin. But you can’t do that either, we’re dealing with serious issues. That’s why I’m not giving up on this, but a lot of work needs to be done.”

 

ON SPEAKING TO GERMANY’S MERZ:

“If the Federal Chancellor wants to call and talk, I have already said this many times – we do not refuse any contacts. And we are always open to this… At some point, when our European partners decided to inflict a strategic defeat on us on the battlefield, they themselves stopped these contacts. They stopped, let them resume. We are open to them.

“I do doubt if Germany can contribute more than the United States as a mediator in our negotiations with Ukraine. A mediator must be neutral. And when we see German tanks and Leopard (battle tanks) on the battlefield, and now we are looking at the fact that the Federal Republic is considering supplying Taurus (missiles) for attacks on Russian territory using not only the equipment itself, but also using Bundeswehr officers… Here, of course, big questions arise. It is well known that if this happens, it will not affect the course of hostilities, that is excluded. But it will spoil our relationship completely.

“Therefore, today we consider the Federal Republic, just like many other European countries, not a neutral state, but as a party supporting Ukraine, and in some cases, perhaps, as accomplices in these hostilities. Nevertheless, if we are talking about a desire to talk about this topic, to present some ideas on this subject, I repeat once again, we are always ready for this.” – Reuters

US moves some military assets in Middle East vulnerable to Iranian attack, officials say

STOCK PHOTO | Image by Daniel Hadman from Pixabay

WASHINGTON – The U.S. military has moved some aircraft and ships from bases in the Middle East that may be vulnerable to any potential Iranian attack, two U.S. officials told Reuters on Wednesday.

The officials, who were speaking on the condition of anonymity, said the move was a part of planning to protect U.S. forces. They declined to say how many aircraft or ships had been moved and where they would be going.

One of the officials said U.S. naval vessels had been moved from a port in Bahrain, where the military’s 5th fleet is located, while aircraft that were not in hardened shelters had been moved from Al Udeid Air Base in Qatar.

“It is not an uncommon practice. Force protection is the priority,” the official said.

Reuters was first to report this week the movement of a large number of tanker aircraft to Europe and other military assets to the Middle East, including the deployment of more fighter jets. An aircraft carrier in the Indo-Pacific is also heading to the Middle East.

It comes as President Donald Trump kept the world guessing whether the U.S. will join Israel’s bombardment of Iranian nuclear and missile sites, as residents of Iran’s capital streamed out of the city on the sixth day of the air assault.

Israel launched an air war on Friday after saying it had concluded Iran was on the verge of developing a nuclear weapon. Iran denies seeking nuclear weapons.

Iran has conveyed to Washington that it will respond firmly to the United States if it becomes directly involved in Israel’s military campaign, the Iranian ambassador to the United Nations in Geneva said on Wednesday. – Reuters

GT Capital ranks 7th among Philippine companies in 2025 Fortune Southeast Asia 500 list

GT Capital Holdings, Inc. (GT Capital) secures the 7th spot among Philippine companies in the 2025 Fortune Southeast Asia 500 list, higher than its ranking in 2024. Region-wide, GT Capital climbed 13 spots to 61st place across the top 500 Southeast Asian companies.

The 2025 Fortune Southeast Asia 500 ranks the region’s largest companies by revenue for the 2024 fiscal year. Collectively, companies in the 2025 list generated US$1.82 trillion in revenue in 2024, up 1.7% from US$1.79 trillion the year before. A total of 40 Philippine companies earned spots in the list, collectively generating US$141 billion in revenues.

“Fortune’s interest in the region reflects Southeast Asia’s growing importance as an engine of global growth,” says Clay Chandler, Executive Editor, Asia. “The region has become a crucial manufacturing and export hub, which is drawing significant capital flows. This momentum has been further fueled by Trump-era tariffs, which have reshaped global trade dynamics and driven a shift towards Southeast Asia.”

In the same list, GT Capital’s associate Metropolitan Bank & Trust Co. (Metrobank) placed 96th overall and 14th in the Philippines, up 12 slots in Southeast Asia and retaining its place in the Philippine rankings from 2024. Another associate Metro Pacific Investments Corp. (MPIC) also earned a spot at 227th in Southeast Asia and 30th in the Philippines.

GT Capital Chief Financial Officer and Treasurer George S. Uy-Tioco, Jr. welcomes the recognition as it reflects the conglomerate’s unwavering focus on innovation and long-term economic impact. In 2024, GT Capital reported total revenues of Php321.5 billion, up 5% year on year. This full-year performance was mainly attributed to record earnings of its operating companies Metrobank and Toyota Motor Philippines (TMP), the revenues of which rose 7% and 8%, respectively, in 2024.

“Being ranked among the most esteemed companies in the Southeast Asian region is a true testament to GT Capital’s commitment to excellence and our leadership in the industry. This reaffirms the group’s strong fundamentals across diversified sectors, reflecting both the hard work and dedication of our people, as well as the positive momentum of the Philippine economy,” Mr. Uy-Tioco further explained.

Fortune magazine is one of the world’s most respected business publications, best known for its Fortune 500 ranking of top US companies and the Global 500, which highlights the largest corporations worldwide.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

Fed keeps rates steady but pencils in two cuts by end of 2025

A sign for the Federal Reserve Board of Governors is seen at the entrance to the William McChesney Martin Jr. building in Washington, D.C. — REUTERS

WASHINGTON – The US central bank held interest rates steady on Wednesday and policymakers signaled borrowing costs are still likely to fall in 2025, but Federal Reserve Chair Jerome Powell cautioned against putting too much weight on that view, and said he expects “meaningful” inflation ahead as consumers pay more for goods due to the Trump administration’s planned import tariffs.

“No one holds these … rate paths with a great deal of conviction, and everyone would agree that they’re all going to be data-dependent,” Powell said in a press conference after the end of a two-day US central bank meeting where policymakers slowed their overall outlook for rate cuts in response to a more challenging outlook of weaker economic growth, rising joblessness, and faster price increases.

If not for tariffs, Powell said, rate cuts might actually be in order, given that recent inflation readings have been favorably low.

But a cost shock is coming, he insisted, with producers, manufacturers and retailers still involved in a complicated struggle over who will pay the levies imposed so far, and President Donald Trump still contemplating an aggressive set of import duties that could go into effect early next month.

“Everyone that I know is forecasting a meaningful increase in inflation in coming months from tariffs, because someone has to pay for the tariffs … between the manufacturer, the exporter, the importer, the retailer,” Powell said. “People will be trying not to be the ones who can pick up the cost. Ultimately, the cost of the tariff has to be paid, and some of it will fall on the end consumer.”

“We’ll make smarter and better decisions if we just wait a couple of months or however long it takes to get a sense of really what is going to be the pass-through of inflation” from the higher import taxes, Powell said.

In new economic projections released alongside the Fed’s statement, policymakers sketched a modestly stagflationary picture of the economy, with growth in 2025 slowing to 1.4%, unemployment rising to 4.5%, and inflation ending the year at 3%, well above the current level.

While policymakers still anticipate cutting rates by half a percentage point this year, as they projected in March and December, they slightly slowed the pace from there to a single quarter-percentage-point cut in each of 2026 and 2027 in a protracted fight to return inflation to their 2% target.

And there was a split among the 19 policymakers, with seven of them feeling no rate cuts will be needed. That diversity of views reflects that while uncertainty over Trump’s tariff policy is down from its peak in April, it’s still “a very foggy time,” Powell said, adding that policymakers may have divergent assessments of the risk that inflation could stay persistently higher, or that the labor market could weaken.

Under the new projections, inflation will remain elevated at 2.4% through 2026 before falling to 2.1% in 2027 amid largely stable unemployment.

The projected 1.4% GDP growth this year compares to the 1.7% rate seen in the last round of projections in March, and the 4.5% unemployment rate expected at the end of the year is up from the 4.4% projected in March. The rate in May was 4.2%
So far, however, “the unemployment rate remains low, and labor market conditions remain solid,” the Fed said in a policy statement that kept its benchmark overnight interest rate in the 4.25%-4.50% range. The decision was approved unanimously.

“There’s still bias towards some version of stagnation, lower growth with rising sticky inflation,” said Jack McIntyre, portfolio manager for global fixed income at Brandywine Global. “It feels like it’s a Fed that’s still being very patient, and they’re still biased towards cutting rates in the near future.”

TRUMP LASHES OUT
The Fed’s statement did not mention the sudden outbreak of hostilities between Israel and Iran and the risk that conflict posed to global oil or other markets.

Powell said the Fed is watching the conflict “like everybody else” and that while it’s possible energy prices could rise, such price spikes generally fade and don’t have lasting effects on inflation.

“For the time being we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,” Powell said. The Fed, he added, is set up to “react” to incoming information in a timely way.

US stock indexes closely largely flat on the day, while the 10-year Treasury yield was mostly unchanged. Interest rate future prices continued to suggest the Fed’s September 16-17 meeting was the most likely point for the next rate cut, with another reduction in borrowing costs likely by the end of 2025.

The central bank’s latest action again ignored Trump’s call for immediate rate cuts, a move Fed officials feel would be counter to their effort to ensure inflation returns to the 2% target until key tariff changes are finalized and their effects are better understood.

As Fed officials were meeting on Wednesday, Trump called Powell “stupid” and said the policy rate should be slashed in half, the type of move usually reserved for severe economic emergencies. The president also mused about installing himself as Fed chief.

The Fed cut rates three times last year, with the last move coming in December. Policymakers, however, have been reluctant to commit to a timeline for further cuts given the volatility of US trade policy, and the difficulty of estimating how the burden of higher import taxes will be spread among consumers, importers, and producing nations. — Reuters

Gov’t ready to extend fuel subsidies

President Ferdinand R. Marcos, Jr. is considering fuel subsidies for sectors that will be most affected by a possible spike in global oil prices amid the escalating conflict in the Middle East. — PHILIPPINE STAR/NOEL B. PABALATE

By Chloe Mari A. Hufana and Sheldeen Joy Talavera, Reporters

PRESIDENT Ferdinand R. Marcos, Jr. on Wednesday said that fuel subsidies may be given to stakeholders that are most vulnerable to a spike in oil prices amid an escalating conflict in the Middle East.

“We are starting already with the assumption that oil prices will in fact go up, and I cannot see how [they] will not because the Strait of Hormuz will then be blocked if it escalates,” Mr. Marcos told reporters during an inspection of a burned-down elementary school in Quezon City, according to a transcript from his office. “The prices will certainly be affected.”

He noted that the Philippines had extended fuel subsidies during the coronavirus pandemic and may need to do so again if tensions between Middle Eastern powers trigger a sharp rise in oil prices.

“We will have to do the same for those who are severely affected —stakeholders — by any instability in the price of oil. Yes, it’s a serious problem,” he added.

The Department of Energy (DoE) earlier said the government is ready to roll out fuel subsidies to transport operators and farmers to contain the broader impact of high fuel costs on the prices of basic goods and services.

Oil prices extended their climb on Wednesday, with Brent crude futures up 0.3% to $76.67 per barrel, while US crude rose 0.43% to $75.16 a barrel, Reuters reported. Both had jumped more than 4% in the previous session.

Oil firms in the Philippines are mandated to maintain a minimum 30-day fuel inventory to help stabilize local supply. Should global crude prices breach the $80 per barrel threshold, fuel subsidies for public transport drivers and fisherfolk will be automatically triggered.

Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc., said a possible spike in oil prices is a concern as it may stoke inflation.

“If oil prices increase significantly, these effects may take some time to be felt, but they will be felt in a few months. Apart from the war causing supply disruptions, speculation on oil can also be a cause of price increases which may worsen oil inflation,” he said in a Viber message.

Mr. Erece said short-term government interventions would temper the impact of high oil prices on consumers as well as control inflation.

Aside from elevated oil prices, the weaker peso may also cause an uptick in inflation.

The peso weakened for a seventh straight session on Wednesday, closing at P56.98 versus the dollar, dropping by 28 centavos from Tuesday’s finish of P56.70. This was the local unit’s weakest finish in over two months or since it closed at P57.08 on April 14.

Year to date, the peso is still up by 1.51% from its end-2024 close of P57.845.

“Both factors would lead to some pickup in inflation and could potentially reduce future Fed and BSP (Bangko Sentral ng Pilipinas) rate cuts. If there is an escalation of the Israel-Iran war, that could further lead to higher global oil prices and inflation,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

EV ADOPTION
Meanwhile, the government should accelerate the adoption of electric vehicles (EV), fast-track renewable energy development and reduce reliance on imported oil amid the Middle East conflict, analysts said.

“Periodic crises in the Middle East should compel government to expedite the transition to electric or hybrid vehicles in order to protect the public from the acute but severe impact of regional tensions,” Terry L. Ridon, convenor of think tank InfraWatch PH, said in a Viber message.

He added that the crisis should prompt the power sector to build generation facilities that are not dependent on imported fossil fuels sources.

“The RE (renewable energy) sector should be fully supported with more incentives, more investments and more government support,” he said.

Robert Dan J. Roces, an economist at SM Investments Corp., said recent events “highlight the Philippines’ vulnerability to oil price shocks and should serve as a wake-up call to accelerate energy diversification.”

“While fuel subsidies offer short-term relief, we have to strive for long-term resilience, such as investments in renewables, LNG (liquefied natural gas) infrastructure, and energy efficiency, while modernizing transport and power systems to reduce dependence on imported oil,” he said in a Viber message.

Mr. Roces said well-targeted subsidies can help ease the impact of high oil prices.

“This renewed crisis is a reminder: energy security is not just an economic issue — it’s a strategic imperative,” he said.

Jonathan L. Ravelas, senior adviser at professional service firm Reyes Tacandong & Co., said that the Middle East crisis is a clear reminder that the country must reduce its reliance on imported oil.

“While fuel subsidies help in the short term, we need to fast-track renewable energy, improve public transport, and build energy resilience,” he said in a Viber message.

Based on the two-day trading of the Mean of Platts Singapore, pump prices are expected to rise next week. Diesel is projected to go up by P3.40 to P3.60 per liter; and gasoline by P2.30 to P2.50 per liter, an industry player said.

“Growing uncertainty around the Iran-Israel hostilities and concerns the conflict may intensify and disrupt supply, particularly in the Strait of Hormuz, have further pushed up the prices of crude oil and refined fuel products,” Jetti Petroleum, Inc. President Leo P. Bellas said in a Viber message.

Mr. Bellas said that the company has selected stations that have discount lanes for public utility vehicles and transportation network vehicle service.

“The current price position of most Jetti stations in various trading areas is already substantially discounted. But we will continue to monitor the market situation and the company’s capability if it can still provide further discounts,” he said.

On Tuesday, oil companies implemented a hike of P1.80 per liter for both gasoline and diesel, and P1.50 per liter for kerosene.

The latest price hikes bring the year-to-date adjustments to P6.90 per liter for gasoline and P6.65 per liter for diesel. Kerosene prices, meanwhile, have declined by P0.75 per liter since January.

Vehicle sales dip in May

Vehicles crawl through bumper-to-bumper traffic along EDSA-Taft in Pasay City, May 20, 2025. — PHILIPPINE STAR/RYAN BALDEMOR

By Justine Irish D. Tabile, Reporter

PHILIPPINE AUTOMOTIVE SALES slipped by 1.2% in May to 39,775, amid a double-digit drop in sales of passenger cars, an industry report showed.

A joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) showed new vehicle sales fell to 39,775 units in May from 40,271 units in the same month a year ago.

Auto Sales (May 2025)Month on month, car sales jumped by 18.4% from 33,580 units sold in April.

In May, passenger car sales plunged by 28% to 7,895 from 10,967 units sold in the same month in 2024. Month on month, sales went up by 21.5% from 6,498 units sold in April.

Meanwhile, sales of commercial vehicles, which accounted for 80.15% of May sales, rose by 8.8% to 31,880 from 29,304 units a year ago. Month on month, sales grew 17.7% from 27,082 units in April.

Broken down, light commercial vehicle sales went up by 9.7% year on year to 23,671 units in May, while sales of Asian utility vehicles (AUV) increased by 5.8% to 7,161.

Sales of light-duty trucks and buses went up by 19.2% to 633 units, while sales of large trucks surged 101.6% to 127. Medium truck sales dropped 22% to 288 units in May.

“Car sales in May were a bit softer compared with last year, mostly because passenger car demand slowed down,” said Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“On the flip side, commercial vehicles held up well, and electric vehicles (EV) are gaining more traction. All in all, the market is still growing steadily, just with some mixed signals last month,” he added.

For the January-to-May period, new vehicle sales increased by 1.7% to 190,429 units from 187,191 units a year ago despite a slump in passenger car sales.

“Vehicle sales have been weighed down recently by reduced consumer and business sentiment as the trade war is expected to reduce global trade, investments, employment, and the world economy,” Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in a Viber message.

In the first five months, passenger car sales declined by 21.4% to 38,725 from 49,247 in the same period last year.

On the other hand, commercial vehicle sales jumped by 10% to 151,704 units in the January-to-May period from 137,944 a year ago.

“We are encouraged by the industry’s sustained growth, especially with commercial vehicles driving overall performance,” CAMPI President Rommel R. Gutierrez said in a statement on Wednesday.

In May, EV sales continued to grow, now accounting for 9.08% of the industry. EV sales hit 3,613 units in May, 139.4% up from 1,509 units sold in April.

In the first five months, EV sales reached 10,433 units, accounting for 5.48% of the market.

This year, CAMPI expects EV sales to reach 10% of total car sales.

Toyota Motor Philippines Corp. remained the market leader, with sales of 91,652 units in the January-to-May period, up 6.3% from the 86,257 units a year ago. It accounted for 48.13% of the market.

Mitsubishi Motors Philippines Corp. ranked second with a market share of 19.23% after posting a 4.2% increase in sales to 36,613 units.

In third spot was Nissan Philippines, Inc., even as sales dropped by 14.5% to 9,879. It had a market share of 5.19%.

Rounding out the top five were Suzuki Phils., Inc., which saw an 11.8% increase in sales to 8,913 units, and Ford Motor Co. Phils., Inc., which saw a 30.1% decline to 8,559 units.

For EVs, Toyota sold 7,012 hybrid electric vehicles in the first five months of the year, while Tesla Motors Philippines sold 1,001 units of battery electric vehicles.

“With strong momentum heading into the second half of the year, CAMPI remains confident in the automotive industry’s positive performance. Continued collaboration between government and industry stakeholders will be key to sustaining this growth,” Mr. Gutierrez said.

For this year, CAMPI has set a sales target of 500,000 units. Last year, the industry sold 467,252 units.

Europe-based digital bank applied for license — BSP

BW FILE PHOTO

A EUROPE-BASED digital bank is applying for a local digital banking license, the Bangko Sentral ng Pilipinas (BSP) said.

BSP Deputy Governor Chuchi G. Fonacier said one digital bank has already completed the requirements for the application.

“There’s only one,” she told reporters on Tuesday.

Ms. Fonacier said other digital banks are interested in applying but have yet to complete the paperwork.

“There are those applying but are in the process of completing the requirements. That’s why we’re not at liberty to disclose. One already did the paperwork, but there are some that are still lacking in the documentary requirements,” she said.

The BSP in January lifted a three-year moratorium on digital banking licenses, allowing four more players to operate in the country. These can either be new applicants or banks that will convert their existing license to a digital one.

There are six digital banks in the country.

The BSP said applicants must “bring something new to the table” and offer innovative products that will cater to underserved and untapped markets.

Ms. Fonacier said the Europe-based bank has proposals to tap underserved segments.

She added the applicant uses artificial intelligence (AI) and gives their users access to transactional and credit data.

“That’s the challenge with data. How do you build the data on one person? This bank has a way to build something like that… Of course, AI also has a role. But they have this solution where you can easily gather information,” she said.

Ms. Fonacier also said that while only two active digital banks are profitable, the industry is on track to breaking even.

“It’s understandable, right? If you’re a startup, you go through that process. It’s not right away… You’re still establishing your presence… The prospects in the Philippines that we’re seeing are better compared with the other jurisdictions that have six players,” she said.

The six digital banks operating in the Philippines are Tonik Digital Bank, Inc.; GoTyme Bank of the Gokongwei group and Singapore-based Tyme; Maya Bank of Voyager Innovations, Inc.; Overseas Filipino Bank, a subsidiary of Land Bank of the Philippines; UNObank of DigibankASIA Pte. Ltd.; and UnionDigital Bank of Union Bank of the Philippines, Inc.

Preliminary data from the BSP showed that the digital banking sector posted a P1.04-billion net loss as of end-March.

The digital banking industry has been in the red since the BSP began consolidating data from the sector starting March 2023. — Aaron Michael C. Sy

New ecozones to bring in P3.2 billion in investments

LIMA Estate in Lipa, Malvar, Batangas - ABOITIZLAND.COM

NEWLY APPROVED economic zones (ecozones) are expected to generate P3.2 billion in investments, according to the Philippine Economic Zone Authority (PEZA).

PEZA Director-General Tereso O. Panga said in a statement on Wednesday that the economic zones, which have an estimated cost of P3.2 billion, are expected to facilitate growth and development in the countryside and attract new locators.

“As a medium-term strategy under the Philippine Development Plan, the ecozones will play a vital role in attracting the much-needed investments in the country, generating more jobs for Filipinos, and contributing to accelerating the nation’s socioeconomic progress,” he said.

“For the first half of the year, President Ferdinand R. Marcos, Jr. approved four ecozones — two expansions of a manufacturing zone in Batangas and two new IT (information technology) parks in Tagbilaran City and Bacolod City,” he added.

The expansion of the Aboitiz-led Lima Technology Center has an estimated project cost of P1.4 billion. This is expected to add 42.72 hectares to the ecozone located in Lipa and Malvar, Batangas.

“These expansions are expected to further amplify Aboitiz InfraCapital’s contributions and better enable PEZA to execute its commitment to sustainable economic progress and national development,” PEZA said.

Megaworld is also developing an IT Park, to be called The Upper East, in Bacolod City. Spanning 33.96 hectares, the project involves the construction of two IT buildings, which have a projected cost of about P1.6 billion.

“Five information technology and business process management (IT-BPM) companies are expected to operate in the park, creating over 2,500 local jobs,” PEZA said.

“The development of this IT park solidifies the position of Bacolod City as an emerging IT-BPM hub in the country and will further create opportunities for innovation and development,” it added.

Meanwhile, Mr. Marcos also issued a proclamation for an IT park, covering about 11,237 square meters, in Tagbilaran.

The Tagbilaran Uptown IT Hub 2 has a projected cost of over P200 million and is expected to attract more IT-BPM locators to Bohol.

“A prospective locator has already expressed interest in investing upwards of P70 million and hiring over 500 Filipinos,” PEZA said.

Under the current administration, a total of 32 ecozones have been proclaimed, which have P13.406 billion in committed investments.

This year, PEZA is targeting the approval and proclamation of at least 30 ecozones, particularly in Central Luzon, Cebu, and Mindanao.

“PEZA is also working to establish the Palawan Mega Ecozone — the first of its kind in the country — and the Pantao Ecozone, eyed as the fifth public ecozone, both targeted for proclamation within the current administration,” PEZA said.

Citing the latest report from the Philippine Statistics Authority, the investment promotion agency said that the majority of the top local government units outside Metro Manila in terms of economic contribution and foreign investment flows are home to ecozones.

“PEZA continues to engage with local governments and developers in advancing ecozone development in the country,” Mr. Panga said. — Justine Irish D. Tabile

Semirara says court issued TRO halting duties on fuel imports

SEMIRARAMINING.COM

SEMIRARA Mining and Power Corp. (SMPC) said a regional trial court has granted its request for a 20-day temporary restraining order (TRO) against the government’s collection of duties and taxes on its fuel imports.

“We disclose today that Semirara Mining and Power Corp. filed a Complaint for Injunction with prayer for Temporary Restraining Order and/or Writ of Preliminary Injunction… to enjoin the Department of Finance (DoF), BIR (Bureau of Internal Revenue), and BoC (Bureau of Customs) from collecting duties and taxes on the company’s fuel imports,” SMPC said in a regulatory filing on Wednesday.

The company said the Regional Trial Court of Makati Branch 234 issued the TRO on June 17, but has yet to publicly release a copy of the court order as of press time.

SMPC said its exemption is backed by Section 295(f) of the National Internal Revenue Code, as amended by the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law.

It also cited Presidential Decree (PD) 972 or the Coal Development Act of 1976 and its Coal Operating Contract.

“The company maintains that it remains exempt from such charges under PD 972 and its Coal Operating Contract, which prevail over general laws and are protected by the Constitution’s Non-impairment Clause,” it said.

Sought for comment, Bureau of Customs Assistant Commissioner Vincent Philip C. Maronilla said the agency is awaiting the official copy of the TRO and the complaint.

He added that the BoC will coordinate with the Bureau of Internal Revenue and the Department of Finance on legal steps.

The BIR and DoF have yet to respond as of press time.

SMPC said the legal proceedings will have “no effect on its business operations.”

The Consunji-led company is the country’s largest coal producer, supplying fuel to domestic power plants, cement factories, and industrial users, and exporting to markets such as China, South Korea, and Brunei. — Sheldeen Joy Talavera

1...482483484...13,308Page 483 of 13,308
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube