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Digital transformation in Philippine agribusiness

LIONHEART FARM

(Part 1)

The Philippine agriculture sector accounts for about 10% of total GDP but employs some 22% of the Philippine labor force, already exposing the low productivity of those working in farming. It is not a surprise that some 70% of those who fall below the poverty line (16% of the total population and about 22% of total households) are in the farming, fisheries and forestry sector. If we expand the definition from just farming to the entire value chain called agribusiness (which includes post-harvest, storage, logistics, food processing and retailing), the contribution to GDP can rise to 30%. The agriculture, forestry and fishing sector has been the weakest link of the Philippine economy, often posting volume declines and hardly averaging growth of 1% per annum over a 20-year period. If we want to achieve GDP growth rate of close to 8% annually over the next 10 to 20 years to be able to attain high-income status, we must accelerate the growth of the agriculture, forestry and fishing sector to at least 3% annually, a performance already attained by our ASEAN neighbors like Thailand and Vietnam.

Increasingly, with the expiration of the Comprehensive Agrarian Reform Law (CARP), there is a trend towards the bifurcation of the farming sector into two distinct agricultural models: on one side you have the millions of small farmers with two to three hectares of land each in such crops as rice, corn, vegetables, fruits and livestock. These farmers should be the target of government assistance in the form of farm-to-market roads, irrigation systems, post-harvest facilities, agricultural extension services and access to credit. Also playing a vital role in helping small farmers earn income above subsistence is the NGO sector, which includes cooperatives, social enterprises and philanthropic organizations. It must be kept in mind that such help to small farmers is primarily meant to eradicate poverty rather than attain significant increases in productivity. Only the second emerging sector, i.e., the large commercial farms that can attain economies of scale and employ the most advanced technology in agribusiness can help the country attain 8% GDP growth that is necessary for attaining high-Income status, say 20 years from now.

Fortunately, there are increasing signs that large-scale commercial farming is beginning to attract private capital. This is not only true for the traditional large-scale operations like those of banana and pineapple plantations, in which the Philippines has managed to keep up with other countries in Southeast Asia and South America. Now, we are witnessing long-term capital being invested in large-scale farming operations in coconut, palm oil, bamboo and dairy. I have high hopes that, if the BBM administration has the political will to help private investors reconsolidate millions of hectares (especially in the coconut industry) into larger farms of thousands of hectares each, we will see the success story of bananas and pineapples spread to other crops like coffee, cacao, mangoes, avocado, durian, pili, cashew, etc. It will not be easy because of the remaining agrarian reform mentality of some of our leaders. I am glad, though, that the present administration is no longer obsessed with agrarian reform as were past political leaders. I am witnessing small coconut farms being reconsolidated into bigger units through cooperativism, the nucleus estate model perfected by the Malaysians in palm oil production, and the conversion of denuded forest areas into commercial coconut farms. The pioneer in combining these three modes of farm consolidation is Lionheart Farm located in Rizal, Palawan. There are efforts to replicate this model (of about 3,000 hectares of coconuts) in such other regions as Quezon province, Samar, Leyte and Northern Mindanao.

How do we attain the goal of increasing agricultural productivity so that we can start growing at higher GDP growth rates of 8% or above? One answer given by some people in business and academe is to introduce digitalization and other forms of digital transformation into the whole agribusiness sector, starting with farming. This was the topic of a forum organized by the Center for Food and Agribusiness of the University of Asia and the Pacific (UA&P) in collaboration with the Southeast Asian Center for Graduate Study and Research in Agriculture (SEARCA). As mentioned by Annette Dacul, director of the Center for Food and Agribusiness of UA&P in her introductory remarks at the forum, digitalization is one of the strategic directions being implemented by the BBM administration to reverse the unfortunate reputation of agriculture as the sick sector of the Philippine economy. The other three strategic moves are product diversification, which will address the serious problem of overconcentration of our resources on rice to the detriment of many other crops in which the Philippines can be more productive and competitive; farm consolidation as explained above; and industrialization, i.e., processing agricultural materials we produce rather than just exporting them raw whenever commercially feasible. These topics will be addressed in future fora that will be also co-sponsored by CFA and SEARCA.

The agribusiness forum on March 14 on “Digital Transformation in Philippine Food and Agribusiness: Innovation for the Future” served as a platform to bring together key stakeholders in the Philippine food and agribusiness sector to discuss digital transformation and its role in shaping the future of the industry. It could be mentioned here that food security is being given the highest priority by the BBM administration. With rapid advancements in digital and related technologies, the forum explored innovative solutions to enhance productivity, efficiency and market access across the agricultural value chain.

Specifically, the forum and similarly, the other fora planned for the future on farm consolidation, diversification, and industrialization, are aimed at the following:

• Raise awareness: Highlight the importance of digital transformation in agriculture and food systems

• Showcase innovation: Present cutting-edge technologies and practices in farming, postharvest processing, logistics and market access

• Facilitate collaboration: Provide opportunities for networking and partnerships among industry leaders, government agencies, academe and private enterprises

• Strengthen policy advocacy: Advocate for policies supporting the digitalization of the food and agribusiness sector

There were panel discussions on “Digitalization in farm production and postharvest” led by Ana Cecilia Palma, founder and managing director of Yarran Consulting, and Christian Eyde Moeller, CEO at Lionheart Farms; Gilian Santos, CEO and co-founder of Anihan Technologies, Inc.; and Julius Barcelona, CEO at Harbest Agribusiness. The second panel discussion was on “Digitalization in logistics and market access,” which was moderated by Ruel Maningas, program director of the Master in Applied Business Analytics and professor of UA&P with panelists JT Solis, CEO and co-founder of Mayani; and Marc Concio, CEO and co-founder of KITA Agritech. The third panel was on “Financing in digital agriculture” moderated by V. Bruce Tolentino, former member of the Monetary Board with panelists Clarita de la Rosa and Laurence Hidalgo, program officer at LANDBANK; Tony Isidro, CEO at Fuse, the lending arm of GCash and Honorio Flameno, director of DA-ICT Service. The fourth panel discussed “Policy and partnerships” with Roehlano Briones, senior fellow at the Philippine Institute for Development Studies (PIDS) as moderator and panelists Mercedita Sombilla, former undersecretary for policy, planning and regulations at the Department of Agriculture; and Nerita Manalili, managing director at NEXUS Agriculture.

(To be continued.)

 

Bernardo M. Villegas has a Ph.D. in Economics from Harvard, is professor emeritus at the University of Asia and the Pacific, and a visiting professor at the IESE Business School in Barcelona, Spain. He was a member of the 1986 Constitutional Commission.

bernardo.villegas@uap.asia

Dollar wobbles as world waits for Trump’s reciprocal tariffs

US one-hundred-dollar notes are seen in this picture illustration taken in Seoul Feb. 7, 2011. — REUTERS

SINGAPORE — The dollar wobbled on Tuesday after a bruising quarter as weary investors braced for reciprocal tariffs from US President Donald J. Trump this week, a move that is likely to exacerbate the global trade war that has evoked US recession worries.

Investors’ focus has been firmly on the new round of reciprocal levies that the White House is due to announce on Wednesday, with details scarce. Mr. Trump said late on Sunday that essentially all countries will be slapped with duties this week.

That has left currency markets subdued as traders stayed on the sidelines awaiting clarity on Mr. Trump’s trade policies. Mr. Trump has already imposed tariffs on aluminum, steel and autos, along with increased tariffs on all goods from China.

“The second quarter may bring with it as much uncertainty and volatility for investors as the first quarter of the year,” said Anthony Saglimbene, chief market strategist at Ameriprise Financial.

“To date, there has been very little clarity on what and who these tariffs will target out of the gate. Market volatility could escalate depending on what and who is targeted.”

The euro was 0.11% lower at $1.0805 after gaining 4.5% in the first quarter of the year, its strongest quarterly performance since October-December in 2022, thanks mainly to Germany’s fiscal overhaul, although some investors are skeptical of the bull run lasting longer.

The Japanese yen was a shade stronger at 149.815 per dollar on Tuesday. The yen rose nearly 5% against the dollar in the January-March period on growing bets that the Bank of Japan would hike interest rates again.

Data on Tuesday showed business sentiment among big Japanese manufacturers worsened in the three months to March, a sign escalating trade tensions were already taking a toll on the export-reliant economy and complicating the Bank of Japan’s next move.

US DATA ALSO AWAITED
Beyond tariffs, a string of economic reports, including jobs and payrolls data, could shed much-needed light on how the US economy is holding up under a second Trump presidency.

Federal Reserve Chair Jerome H. Powell and other central bank officials’ speeches scheduled this week also could offer clues on the path for US interest rates.

The Reserve Bank of Australia (RBA) on Tuesday held interest rates steady at 4.1% and said it was still cautious about the outlook, though it dropped an explicit reference to being cautious about cutting rates again.

The Aussie was mostly steady, up 0.1% at $0.6256 in a muted response to the policy decision. The currency had touched a four-week low of $0.6219 on Monday, though it eked out a 1% gain in the first quarter.

“The RBA’s statement suggests they’re inching towards their next cut, but in no rush to signal one ahead of the election or the quarterly inflation figures,” said Matt Simpson, senior market analyst at City Index. Australia will hold a general election on May 3.

The RBA delivered its first rate cut in over four years in February but has since adopted a cautious tone on further easing, with Governor Michele Bullock and other top policy makers downplaying the likelihood of multiple cuts.

The dollar index, which measures the US currency against six rivals, was flat at 104.23. Sterling last fetched $1.2916, while the New Zealand dollar was at $0.56755. — Reuters

Aboitiz group targets more regional airports in expansion move

PHILSTAR FILE PHOTO

ABOITIZ InfraCapital, Inc. is keen on taking over the operations and maintenance of other regional airports in the country as the infrastructure arm of the Aboitiz group is set to take over two regional airports this year.

“We are actually open to expanding our portfolio. With Cebu, Laguindingan, and Bohol, we are already building a strong network. But we are keeping an eye on other potential regional airports,” Aboitiz President and Chief Executive Officer Cosette V. Canilao said in an interview on Money Talks with Cathy Yang on One News on Tuesday.

Aboitiz InfraCapital is set to assume the operations and maintenance of Laguindingan International Airport in Misamis Oriental this month, and will take over New Bohol-Panglao International Airport by June.

Aboitiz InfraCapital’s immediate plans for the two regional airports are to enhance operational efficiency, improve commercial space, and introduce digital upgrades, Ms. Canilao said.

“We also plan to work closely with local stakeholders to ensure that the airport becomes a real driver of regional tourism and economic growth,” Ms. Canilao said.

The company, which has also taken full control of Mactan-Cebu International Airport (MCIA), plans to apply a slightly different approach at the two regional airports than it did at MCIA.

“Our approach is tailored per location. Cebu is a major international hub, while Bohol and Laguindingan are growing regional airports with strong tourism and domestic traffic,” Ms. Canilao said.

For Bohol, Aboitiz InfraCapital said it will focus on scalable infrastructure upgrades and implement sustainable initiatives, while it will prioritize capacity enhancements and connectivity for Laguindingan, especially since the airport is a key link to northern Mindanao.

“For Laguindingan, we also aim to support the revival and growth of tourism in northern Mindanao. We’re hoping to build on its already strong tourism appeal by working with local stakeholders, most especially the local government units and airlines, to open up more routes and services,” she said.

Meanwhile, Aboitiz InfraCapital expects to turn a profit on these regional airport projects within the next five to seven years, Ms. Canilao said, adding that the company sees airport projects as long-term investments.

The company won the contracts for the operations and maintenance of the P12.75-billion Laguindingan airport project and the P4.53-billion New Bohol-Panglao International Airport after no bids were received by the government during the projects’ Swiss challenge.

Aside from expanding its airport portfolio, Aboitiz InfraCapital is also keen on expanding its water and digital infrastructure assets.

“We see huge potential as well in water and digital infrastructure, and we are excited again for more public-private partnerships (PPPs),” she said, adding that the company would likely get into water infrastructure projects in areas where it has built and managed airports.

“What we want to do is not only build or develop the airports but also the supporting infrastructure around our airport assets,” she added. — Ashley Erika O. Jose

Art exhibit for dogs

MY LOVE by Kharmela Baldemor, acacia wood

DOGS have been preserved in art in illustrations dating back to the Bronze Age, cementing the animal’s status as man’s favorite companion. Some of the world’s most famous paintings just aren’t complete without dogs — think Jan van Eyck’s The Arnolfini Wedding, with a pooch just by the female figure’s skirt; and who can forget Dogs Playing Poker? More poignantly, there’s a statue of Hachiko in Japan, a memorial for the loyal Akita who waited for his master Hidesaburo Ueno at the train station long after Mr. Ueno’s death.

From March 30 to April 6, Hound Haven Philippines, Inc. is holding Pawcasso: Art for Dogs, a benefit art exhibit for its eighth anniversary. Hound Haven is the first and only non-profit organization and animal shelter in the Philippines dedicated to the rehabilitation and rehoming of retired military working dogs (MWDs) and contract working dogs (CWDs). The exhibit is currently open to the public at the Gimenez Gallery, University of the Philippines (UP) Diliman.

The exhibit is in collaboration with members and friends of the Paete Artists Guild — the small town in Laguna is known for its thriving art scene, especially with regard to its woodcarving expertise (the town’s name is said to come from the Filipino word for chisel: paet). The town has produced some names known to the nation and the world: painter Manuel Baldemor, sculptor Mariano Madriñan (famous for a religious statue of the Mater Dolorosa exhibited at the International Exposition held in Amsterdam in 1882), and his grandson, fellow sculptor Froilan T. Madriñan, one of the founders of the UP Artists Circle Fraternity of the UP College of Fine Arts.

Pawcasso has 25 participating artists, with familiar names in Laguna and the Philippine art scene: there are works by Felix Baldemor with recall to the traditional religious figures that come out of Paete, but decidedly more modern ones like Fhiex Orozco’s The Hero Dog Kabang (the dog who rescued two children from a vehicular crash, damaging her nose and jaw in the process), made out of spoons. Kharmela Baldemor, of the same family, made a series of wood sculptures about the womb, but also an especially charming one resembling a traditional Madonna and Child — except in this one, Our Lady is more modern and is locked in an embrace with a dog. The art available isn’t exclusively centered around dogs: Christine Cagandahan (another old Paete last name) did a series of flowers in epoxy steel and canvas, while Menchie Vitente made an abstract of a rainbow dripping down a canvas to end in a wave of gold leaf.

“It’s something we’ve never done before,” said Maxin Arcebal Isidro, chief executive officer and co-founder of Hound Haven. “One of my co-founders (Corporate Secretary Jerome Arcebal) is an art collector.” Mr. Arcebal’s connection to the Paete Artists Guild through Love Bagacina and Otep Bañez became a call for artworks. “These artists were aware about Hound Haven. He knew that they were dog lovers,” she said. While some of the artists already had dog-themed and dog-related art in stock, some of them made new pieces for Pawcasso.

HOUND HELP
While 60% of the sales go to the artists, 40% of the sales go towards Hound Haven’s programs. “40% will help us with our K-9 rehabilitation programs. When the K-9’s are turned over to Hound Haven, some of them are very old. They have medical conditions; they have health challenges. Some even have PTSD (post-traumatic stress disorder).” Recently, the Commission on Audit came out with a circular that required K-9 units in government service to be retired at eight years old, and to be adopted out, either by their handlers or by private organizations, individuals, and families following a list of guidelines — the idea for which came from Hound Haven’s partnership with the Philippine Army K-9 Battalion, according to Ms. Arcebal Isidro. “The goal is to eventually match them with families in forever homes: just to give them a new kind of life — this time as members of a family,” she said.

Ms. Arcebal Isidro told us success stories of former Hound Haven residents: there’s Tootsie, an ex-explosive detection dog, who was introduced to them as possibly aggressive and unpredictable. “When we started working with him, he just turned out to be such a big baby,” she said. Tootsie came to be adopted by a family who had just lost their own dog: “They fell in love with Tootsie, and they made it work.” She pointed out that Tootsie was very happy — he attended Pawcasso’s opening with his new family. Then there’s Fyt, a sweetheart from the very beginning, who was introduced to UP Vice Chancellor for Community Affairs Jerwin Agpaoa. Fyt passed away a few years ago, but not before becoming a pioneer member of UP Diliman’s Emotional Support Animal program.

“Art evokes emotions and feelings,” said Ms. Arcebal Isidro, relating art to the dogs they care for. “To be able to feel like that, you have to love something enough — even when that something won’t give you anything monetary, or anything tangible in return.”

“When you love dogs, it’s knowing that their presence is enough. I think it takes a certain kind of person to love a dog — and also a certain kind of person to create art, out of all those feelings that you get from loving beyond language.” Or in this case: “Beyond species.”

Other activities at Pawcasso include discounted pet portrait sessions with Paws&Click (@pawsandclickstudio) on April 5 (register at https://tinyurl.com/HHPawsandClick), and a meet-and-greet with some of Hound Haven’s adoptable retired K-9s, brought by pet transport provider Joyful Pet Transport (@joyfulpettransport). Dog-related treats and merchandise are also available from YPF Grooming Studio(@ypfgroomingstudio), Happy Life Organics (@happylifeorganics), Pet Lovers Centre (@petloverscentreph), Biyaya Animal Care (@biyayaanimalcare), Little Lion Treats (@littleliontreats), and Twin Lakes Hotel Tagaytay (@twinlakeshotel). Learn more about Hound Haven through Facebook (fb.com/houndhavenph), Instagram (@houndhavenph), and on www.houndhavenph.org. — Joseph L. Garcia

Voters want candidates who will ensure food security

PANGASINAN CORPORATE FARMING PROGRAM — PANGASINAN.GOV.PH

Filipino voters are often underestimated. There’s a persistent stereotype that they’re easily swayed by charm or quick fixes. But recent surveys tell a more grounded story — one that points to a growing demand for real solutions to everyday challenges, especially when it comes to food and livelihood.

Recent surveys, however, reveal that the preferences of Filipino voters are more intimately linked to issues of the gut, not only for a single day’s meal but for the foreseeable future in their families’ lives.

A Pulse Asia survey conducted in February 2025 revealed that 53% of Filipinos believe that the government should focus on making basic commodities more affordable, while 51% seek expanded employment and livelihood programs to cope with the rising cost of living.

Regional and socioeconomic variations in the survey data further validate this. For instance, 63% of respondents in Mindanao and 59% of those from Class E prioritize access to affordable basic goods, highlighting the disproportionate impact on poorer and rural communities. Moreover, 74% of Filipinos have already reduced consumption of meat, and 35% have cut back on rice. Inflation is eroding dietary quality and nutritional intake.

Food inflation is therefore now a matter of survival. And when people cannot afford the prices of basic food items, food insecurity sets in. According to the Food and Agriculture Organization’s (FAO) 2024 report, 6.8 million Filipinos experienced severe food insecurity from 2021 to 2023, while 51 million were moderately food insecure during the same period. Food insecurity aggravates social inequality, poverty, malnutrition and public discontent.

Food insecurity does not develop overnight. Decades of inconsistent policies, poor infrastructure and failure in the proper implementation of programs have weakened the country’s local agricultural sector that greatly impacted our local food systems.

This is not something that we should wait years to respond to. Pulse Asia survey data from February 2025 reveal that 37% of Filipinos believe that the Department of Agriculture (DA) should prioritize bridging farmers to major distribution channels to eliminate costly middlemen. This reflects growing public recognition that weak market linkages are a core barrier to agricultural profitability and food affordability.

Notably, support for this measure is strongest in Mindanao (41%) and NCR (40%), areas that represent both key production and consumption centers. Meanwhile, 30% advocate for land consolidation to promote more efficient, corporate-style farming, and 26% support a review of subsidy and loan distribution — highlighting demand for systemic reform in agricultural financing. These preferences indicate a shift in public awareness toward structural and supply chain-focused solutions, emphasizing the need for an integrated approach that improves logistics, market access and productivity across the agricultural sector.

The threats of climate change and natural disasters further endanger our food supply chain and agricultural productivity.

The issue of food security takes on an even more urgent hue as we approach the May elections. A Social Weather Stations (SWS) survey in February 2025 highlights the urgency of this issue as 90% of voters support candidates who prioritize the development of the agriculture sector and ensure food security.

Agro-industry should be prioritized because it encourages resilience amid global supply chain disruptions, and promotes inclusive and sustainable economic growth. Self-sufficiency at all costs is not sustainable and inefficient. A modern food security strategy must focus on crop diversification, farm clustering and mechanization, and public-private partnerships in post-harvest facilities, logistics, storage and research and development.

Ensuring food security requires bold, systemic reforms beyond short-term subsidies. A forward-looking agricultural agenda must prioritize infrastructure, technology and data-driven policies to enhance productivity and resilience. This demands strong leadership committed to transforming the Department of Agriculture, shifting from a welfare mindset to a focus on efficiency and innovation.

As the May elections draw closer, the stakes are becoming clearer. These midterm elections are no longer about personalities or political affiliations. They are about real solutions to the rising cost of food and the long-term well-being of Filipino families. Voters are no longer swayed by vague promises; they are demanding clear, actionable and sustainable security agendas from the candidates who want to lead them.

Food is no longer just an economic or social issue; it’s a full-blown national concern. Inflation has pushed basic goods out of reach for many Filipinos, turning daily meals into a struggle. This can’t be treated as a token issue. Candidates must go beyond band-aid solutions and show how they’ll tackle food insecurity at its roots. Because food security isn’t just about today’s grocery bill; it’s about shaping a future where agriculture is strong, farmers are valued, and no family goes hungry. In this election, voters will decide whether the next leaders will confront this crisis head-on or let it keep getting worse. As voters, we have the power and responsibility to choose the right leaders who will have the integrity and capacity to lead us out of this food crisis.

 

Victor Andres “Dindo” C. Manhit is the president of the Stratbase ADR Institute.

US Fed officials cautious on rates amid tariff-related inflation risks

Flags fly over the US Federal Reserve building in Washington, US, May 26, 2017. — REUTERS

NEW YORK — New York Federal Reserve President John Williams said on Monday that monetary policy is “well positioned” for what the economy might do this year, as he acknowledged there are risks that inflation could once again heat up.

“Monetary policy is moderately restrictive,” Mr. Williams said in an interview with Yahoo Finance, with the current setting of interest rates “putting some downward pressure on inflation.”

Williams added that while he cannot predict when the US central bank might change the current level of interest rates, keeping it in place “for some time” will allow officials to study incoming data and decide what they need to do next.

Richmond Fed President Thomas Barkin, speaking separately in an interview with CNBC, said the timing of any rate cuts will depend on what happens with inflation. He noted that while he is nervous that the Trump administration’s tariffs will push up prices, he is also worried the levies could hurt the job market.

“Call me nervous on both,” Mr. Barkin said, adding that “there’s a lot of uncertainty right now, and I think that makes the case for wait and see how this plays out.”

The two central bankers weighed in at a time of high economic uncertainty as President Donald Trump continues to press forward with disruptive shifts in trade policy while at the same time downsizing the federal government, complicating any effort to gain clarity about the outlook for the economy.

That uncertainty proved to be a defining characteristic of the Fed’s rate-setting meeting earlier this month, where policy makers held the central bank’s benchmark overnight interest rate steady in the 4.25%-4.50% range, while maintaining hopes they’ll be able to cut rates later this year.

RECESSION RISKS
The Fed’s outlook has been complicated by the fact that Trump’s tariffs, which could be significantly expanded on Wednesday, are almost certain to drive up inflation in the near term, with big questions about how long those gains might last.

At the same time, uncertainty is complicating businesses’ efforts to plan and invest and is rapidly and dramatically souring consumers’ attitudes.

All of this is leading to rising worries about an economic downturn. On Sunday, Goldman Sachs forecasters said they will raise their recession probability to 35% from 20%, noting “the sharp recent deterioration in household and business confidence, and statements from White House officials indicating greater willingness to tolerate near-term economic weakness in pursuit of their policies.”

The shift in the outlook has been driving financial markets to price in more Fed interest rate cuts as traders and investors reckon the central bank will have to take action to buoy the economy.

Williams said that while he was not going to try to put odds on the prospect of a recession, where the economy now stands is “very solid” with “good growth up to this point,” with a still healthy labor market.

Williams also said, “I can assure Americans that we will not allow high inflation to take root like we saw in the 70s and 80s” and that current economic conditions do not merit being called stagflationary, which is a time of weak growth and high inflation.

The New York Fed leader also said he needs to have more information before he can say definitely what tariffs will do to price pressures. He said his forecast is “that inflation will be relatively stable” this year, while adding there are “upside risks” for price pressures.

Williams also said that as he sees it, longer-run inflation expectations have remained stable and the Fed will make sure it stays that way.

Speaking at a Reuters NEXT Newsmaker event, International Monetary Fund Managing Director Kristalina Georgieva backed up Williams’ outlook and said the process of slowing inflation will continue, albeit at a reduced pace this year.

She also said that “when we look at inflation expectations, they’re a little higher, but not dramatically changing the disinflation trajectory between now and 2026.” — Reuters

Ionics EMS plans to break ground on new facilities in Batangas

IONICS-EMS.COM

IONICS EMS, Inc. said it plans to start construction of two general-purpose facilities at the Light Industry and Science Park (LISP) IV as part of its preparations for potential expansion.

“These are for general purposes and are slated for potential future expansion,” Earl Lawrence S. Qua, vice-president for business development at Ionics EMS, told reporters on Friday last week.

“It is on a four-hectare parcel of land… It can be used as a warehouse; it can also be converted into a plant,” he added.

Mr. Qua said that it is still early to comment on the company’s prospects for potential expansion but noted that the new facilities can be used for internal purposes or leased to another party.

“Well, by June, we will break ground for the two facilities… I think it will take maybe about a year,” he said, referring to the completion of the new facilities.

Late last year, listed company Ionics, Inc. announced its board’s approval for the construction of a standard factory building located at Ionics Properties, Inc.’s property at LISP IV in Malvar, Batangas.

According to a disclosure to the stock exchange, the project is estimated to cost $6.8 million, which will be partly financed through a bank loan.

Ionics EMS is also planning to install solar panels on the roofs of its Plants 2, 5, and 6 for an estimated cost of $1.13 million, which is expected to result in savings on power requirements.

Ionics EMS produces printed circuit boards and finished electronic products and exports 99.5% of its production.

This year, Mr. Qua said the company sees opportunities in the manufacture of telecommunications products and security products for networks and data centers.

“We have been growing… in the past three years. This year I think we have announced a 10% growth,” he said.

He added that the 10% growth is a realistic target while considering the new US tariffs expected to be imposed on all semiconductor imports. — Justine Irish DP. Tabile

International Dance Day to showcase different styles of dance

MORE THAN 1,200 artists from various dance companies and styles will take over the stage of the Samsung Performing Arts Theater in a week-long celebration of International Dance Day (IDD). This will be the IDD Festival’s 2nd iteration, set for April 23 to 27 in Circuit, Makati.

The event aims to showcase “the best of Filipino and international dance talents, from traditional folkloric dances to urban beats, classical ballet, contemporary movement, and even paradance,” Samsung Performing Arts Theater Managing Director Christopher Mohnani said at a March 27 press conference.

“It’s a powerful reminder of how dance connects us all, transcending boundaries and uniting us through shared expression,” he added.

IDD, held annually on April 29, started in 1982 in tribute to French ballet master Jean-George Noverre. Its celebration in the Philippines, with the theme “Dance for All,” will span performances, workshops, and gatherings underscoring the accessibility of dance in all its forms.

NEW INCLUSIONS
On April 23, at 7:30 p.m., the festival will kick off with an opening night gala featuring the multi-award-winning British choreographer Sir Wayne McGregor and his acclaimed Company Wayne McGregor.

The company will present the Philippine premiere of “Autobiography (v105),” a dance portrait inspired by the sequencing of Mr. McGregor’s own genetic code. They will also conduct a special workshop and masterclass on contemporary dance. 

A portion of the proceeds from the opening night gala will benefit the Artists Welfare Project Inc. fund, which provides healthcare support for dancers. It is co-organized by the British Embassy Manila, the British Council, and Ayala Corporation.

The festival also marks a special focus on paradance, an inclusive form of dance that integrates dancers with disabilities. The Philippine Para Dancesport Team, which has won in various competitions abroad, will represent this scene.

VARIOUS GALAS
On April 24, a tapestry of Filipino folk dance will be unveiled. It will showcase 10 community-based traditional dance groups from the regions and from various schools. Two of the groups are from the Cultural Center of the Philippines.

On April 25, it will be street dance’s turn. There will be 8 teams representing it, three of which are world champions who have consistently conquered the world stage.

The ballet segment on April 26 will bring together the four biggest ballet companies in the Philippines, alongside guest artists from Hong Kong Ballet and American Ballet Theatre.

Finally, contemporary dance will end the festival with a flourish on April 27, spotlighting some of the country’s finest contemporary dancers. There will be a special focus on artists from the regions.

In addition to the live performances, Fifth Wall Fest, the country’s only multidisciplinary movement group, will showcase site-specific works, demonstrating that dance can transcend the confines of traditional performance spaces. A dance market and bazaar will also be open throughout the festival, offering merchandise.

Tickets to the various performances and workshops are available via TicketWorld. — Brontë H. Lacsamana

Mochi eyes small firms outside Metro Manila

MOCHI.PH

By Beatriz Marie D. Cruz, Reporter

MOCHI SOLUTIONS, a local billing and collection platform, is looking to quintuple its users this year as it focuses on underserved companies, according to its chief executive officer (CEO).

“So far, we have over a hundred live users, mostly in service sectors like travel, training and education, marketing and creatives,” Yroen Guaya Melgar, co-founder and CEO at Mochi Solutions, told BusinessWorld. “We’ve found that these businesses are often underserved, since most electronic commerce solutions are built for selling goods.”

“This year, we’re hoping to grow five times to 500 live users, focusing on underserved businesses outside Metro Manila,” she said in an e-mailed reply to questions.

Established in 2023, Mochi caters mainly to micro, small and medium enterprises (MSMEs). It offers invoices, payment links, payment reminders, workflow automation, customer engagement and billing and collection reports.

Users can access as many as five user accounts and unlimited invoices under a 60-day free trial. Its standard plan, which costs P1,899 a month, offers as many as 300 invoices a month.

To expand its reach, Mochi is focused on building partnerships with platforms and service providers that complement its billing and collection services.

“Gone are the days of building on your own,” Ms. Melgar said. “Now, we have to strengthen our ability to connect and be more interoperable.”

The platform is also eyeing partnerships with banks and other financial service providers since many of its users need access to capital and other financial services, she pointed out.

About 99% of business establishments in the Philippines are MSMEs, contributing 40% to economic output. But many smaller firms, especially in the countryside, are hampered by limited capital and access to digital platforms.

Majority of Mochi’s users use social media to interact with customers and manage orders. Hence, being tech-savvy is not the issue.

Smaller firms struggle with complicated onboarding and high transaction fees, particularly in payment platforms, Ms. Melgar said. “Based on our own experience, more than 50% of users drop off during onboarding with payment gateways because they can’t complete the requirements.”

The Philippines generally has higher payment fees, especially for cards, compared with Indonesia, Malaysia and Vietnam. This is a disadvantage for businesses operating on thin margins and customers doing larger transactions, she added.

Mochi’s recent partnership with financial technology firm PayMongo, Inc. is expected to help streamline businesses’ financial operations.

“So far, we’ve focused on payments, but MSMEs also need other types of support such as access to capital, the ability to accept foreign payments and tools for handling multicurrency transactions,” Ms. Melgar said.

“The good news is that PayMongo is already developing or piloting solutions in these areas, and we’re excited to explore how Mochi can be part of that.”

The platform is looking to raise a seed fund by the end of the year and is in talks with local and regional investors, she said.

“We’re also strengthening our integration with platforms that support the full business workflow, like enterprise resource planning, so billing and payments are connected to how people actually run their operations,” Ms. Melgar said.

Mochi is also working with local governments and business groups to help promote digital tools.

“For us, billing and payments are just the starting point,” she said. “Our goal is to make sure small businesses have access to a full ecosystem of digital tools that support how they work and grow.”

Playcare centers for poor kids

KIDSLIFEPH.ODOO.COM

Here in Cebu, there is an interesting model in multisectoral cooperation to help poor children get a good start in life. About 100 children aged three to six years, many of them homeless, get to spend up to three hours at what its founders call Balay Amuma (home for playcare).

In 2021, Grace Cabaero Ferreros, founder of KidsLIFE Foundation, obtained a multimillion-peso grant from Ramon Aboitiz Foundation, Inc. (RAFI) to operate a “playcare center” near the harbor, where homeless kids and poor families abound. RAFI President Amaya Aboitiz-Fansler is very interested in early childhood education. She is the daughter of the late Bobby Aboitiz, former president of RAFI, and Maria Cristina Cabarrus-Aboitiz, who was into microfinance.

The choice of area to serve was made by KidsLIFE founders in consultation with the local government of Cebu City and the Department of Social Welfare and Development (DSWD) to ensure that the Balay Amuma would fill a need. DSWD operates daycare centers that serve eligible children around the country. So, Balay Amuma operates in an area not currently served with daycare centers by DSWD. The local government provides funding support for two teachers.

Additional funds for operations are provided by Wadah (Bahasa for “Women”) Foundation whose Chair, Anie Djodjohadikusumo has been providing support for many projects in Indonesia, the Philippines, India, and Nepal. Anie’s brother in law, Prabowo Subianto is the current president of Indonesia.

Presently, the Balay Amuma is rent-free at a building constructed by the Young Ladies Association for Charity (YLAC)) on land owned by the archdiocese of Cebu. Ownership of the building has recently been turned over by YLAC to the archdiocese under the terms of their contract. The archdiocese has authorized Balay Amuma to use the facilities for free until 2026.

Grace Ferreros, who holds a doctorate in education, explains that Balay Amuma is really a model for an approach referred to as Waldorf, which emphasizes creative play for numeracy and literacy rather than the standard approach now used in schools. Music appreciation, carpentry, cooking, arts and crafts and gardening are some of the processes. Children have the right to play. The kids have fun while they learn and develop themselves as persons. This right is exercised more creatively than when the kids are glued to their electronic gadgets.

KidsLIFE takes its playcare approach seriously. Care is something the teachers are oriented on because the kids are either homeless, or the parents are so focused on survival from day to day, that the kids do not get much attention, if any. The care they get at Balay Amuma has turned them into self-confident and happy persons.

KidsLIFE Foundation has begun to promote the Waldorf approach in DSWD-operated daycare centers, notably in Barangay Mambaling, Cebu City where they send a teacher once a week to practice the playcare approach. In San Roque, another barangay, one of the teachers works full time at Balay Amuma whence she will return to her own barangay to use her learnings.

Balay Amuma also provides food for the children, half of them (ages three to four) in the morning, and the older half (ages four to six) in the afternoon. It seems that for many of the children, it is their only meal for the day. Probably why the kids are hardly ever absent from “class.” The food is a complete meal, with carbohydrates, vegetables and protein. YLAC provides P10,000 a month for the food. Simply Share Foundation donates rice. Some of the food is funded by Tina Ferreros, Grace Ferreros’ sister-in-law through her Wadah Foundation Philippines.

Sometimes, volunteers from overseas such as Germany, as well as the US Peace Corps, assist as teachers’ aides.

At present, KidsLIFE Foundation is concerned about its physical facilities after 2026 when the lease-free arrangement ends. Jose Palma, the archbishop of Cebu, explains that as he is retiring this year, he does not want to preempt his successor who may have other plans for the facilities.

Wadah Chairperson Anie Djojohadikusumo has indicated willingness to fund construction of a building for Balay Amuma and its offices; but only on land that they will not fund. So KidsLIFE founders are now seeking donations for the land.

 

Teresa S. Abesamis is a former professor at the Asian Institute of Management and fellow of the Development Academy of the Philippines.

tsabesamis0114@yahoo.com

Domestic trade by region in 2024

DOMESTIC TRADE in goods grew by 23.1% to P1.31 trillion in 2024, reflecting the uptick in overall economic activity, analysts said. Read the full story.

Domestic trade by region in 2024

PBoC seen deploying stimulus on tariff risks, cash shortage

GLOBAL LENDERS like JPMorgan Chase & Co. expect China to deliver its long-awaited monetary stimulus as soon as in April, with timing likely dictated by the double threat of US tariff hikes and a seasonal cash shortage.

Economists are almost unanimous the People’s Bank of China (PBoC) will cut the reserve requirement ratio (RRR) in the second quarter, according to the latest Bloomberg poll, a decision that would unshackle hundreds of billions of yuan for lending and investing. It’s one of several tools available for officials to pump up liquidity in the weeks ahead.

Policy is near a turning point amid an April 1 deadline for the US to review Beijing’s compliance with the so-called Phase One trade deal struck during Donald J. Trump’s first term. The following day, the US president plans to impose sweeping reciprocal duties on trading partners around the world, which is among expected announcements that could lead to potential tariff hikes on China.

“If the tariffs announced on April 2 are quite large, it will be necessary for monetary policy to stabilize market sentiment and offset worries over the economy,” said Qin Yong, chief economist at the treasury department of Sumitomo Mitsui Banking Corp. “April could be a good window for an RRR cut.”

A reduction in the amount of cash lenders must keep in reserve would be the first such move since September. Analysts at banks including JPMorgan and Macquarie are among the majority predicting a decrease of 50 basis points this quarter.

Control over the reserve requirement ratio is one of the most potent tools in the PBoC’s arsenal, meaning a cut would send a strong easing signal that indicates a readiness to help the economy weather US tariffs.

It would also mark a shift in the central bank’s relatively hawkish approach to managing liquidity since the beginning of this year — an attitude motivated by its heightened focus on defending the yuan and efforts to curb speculation in the bond market.

But that rationale may now be changing. Besides the risk of further levies on Chinese exports, the PBoC is also having to contend with rising market demand for financing, as strong government bond sales soak up cash and a wall of central bank loans mature this month.

In April, at least 1.8 trillion yuan ($248 billion) of outright reverse repo and medium-term lending facility loans are coming due, which will withdraw funds from the financial system. Net government bond issuance could reach 1 trillion yuan, according to Cinda Securities, in what would be a record high for the month of April.

As part of an effort to maintain the flow of liquidity, the PBoC announced on Monday it sold 800 billion yuan worth of outright reverse repo contracts in March. That exceeded the amount that matured during the month, resulting in a net injection of 100 billion yuan, according to Bloomberg calculations.

More pressure may come during the peak of the corporate tax payment season this month, when demand for cash is typically at its highest.

Still, the timing of any move will hinge on the PBoC’s assessment of China’s economy and the possibility of a more aggressive round of easing by the US Federal Reserve this year.

Despite signs of resilience in Chinese consumption, investment and production, industrial profits contracted at the start of the year and consumer inflation dropped far more than forecast to fall below zero. Expectations for future business in the manufacturing industry weakened for a second month in March to the lowest level this year.

While markets have been anticipating an RRR cut since the final months of 2024, the PBoC has instead leaned on tools such as outright reverse repurchase agreements that carry a weaker signaling effect.

As a result, it’s allowed a rise in market borrowing costs and government bond yields that alleviated downward pressure on the Chinese currency.

“Tight liquidity hasn’t really created big problems right now and they can afford to hold on a little longer until there is more clarity on trade and when the Fed eases further,” said Michelle Lam, Greater China economist at Societe Generale SA.

Absent an RRR tweak, other options for adding liquidity include the resumption of the central bank’s purchases of government bonds, which have been on pause since mid-January.

For now, lowering the reserve requirement ratio is more likely than an outright decrease of interest rates, which risks more depreciation pressure for the yuan, according to analysts.

The consensus forecast is for a 10-basis-point cut in the policy rate of seven-day reverse repo to take place in the second quarter, according to Bloomberg’s survey.

Looking ahead, cash conditions in China are set to remain tight without further liquidity support from the PBoC. In a sign of increasing demand, the seven-day repo rate, a gauge of funding cost among banks, exceeded 2% to reach the highest since March 2023. 

“With bond supply picking up, the PBoC can become more proactive on liquidity injections via a combination of monetary tools,” Nomura Holdings Inc. strategists Clair Gao and Albert Leung said in a report. “So watch for a potential resumption of PBoC government bond purchases or an RRR cut.” — Bloomberg

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