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Trade department budgets P800 million for shared-service facilities

PROPAKPHILIPPINES.COM

THE Department of Trade and Industry (DTI) said that up to P800 million has been budgeted for shared service facilities (SSF) projects this year.

Trade Secretary Ma. Cristina A. Roque made the remarks on the sidelines of the opening ceremony of Propak Philippines 2025, adding: “Some of the funds have already been used to buy machinery. So now, there is P600 million worth of machinery that needs to be purchased,” she added. 

The SSF program is the DTI’s flagship project to improve the productivity of micro, small and medium enterprises (MSMEs) by giving them access to mechanization and related technology.

“Usually these include packaging, printing, bottling, and so many other machinery,” she added.

Ms. Roque said that Propak Philippines exhibits packaging equipment that its organizers hope will advance industrialization.

She cited concerns about after-sales services and training that need to accompany machinery new to the market.

“For us to be able to buy machinery for shared service facilities, they must have repair and after-sales services.”

“We also need to constantly train the people that will use these machines,” she added.

Asian Packaging Federation President Joseph Ross A. Jocson said: “Sustainability is no longer a trend in packaging; it is a necessity. Consumers are increasingly demanding eco-friendly choices, and businesses are (under) growing pressure to reduce their environmental footprint.”

“This means embracing sustainable packaging solutions that minimize waste, use recycled materials, and are designed for circularity,” he added.

According to Ms. Roque, the Philippine packaging industry is lagging its ASEAN peers.

“If you put (Philippine products and their products) side by side, their packaging is better, but ours taste better,” she said. 

“But since the packaging of our counterparts is nicer, their products are the ones being bought,” she added.

This year’s Propak event is called “Investing in the Future of Sustainable Packaging and Processing through Technology, Innovation, and Thought Leadership.”

Due to run between Feb. 12 and 14, the event is expected to attract 12,000 trade buyers. — Justine Irish D. Tabile

PHL services rules ‘restrictive’; transport deemed a bright spot

PHILSTAR FILE PHOTO

THE PHILIPPINES had some of the most restrictive regulations for trade in services in 2024, particularly in terms of barriers to foreign investment, the Organisation for Economic Cooperation and Development (OECD) said.

The Philippines’ performance in the 2024 OECD Services Trade Restrictiveness Index (STRI), which grades conditions for the services trade across 51 countries and 22 industries, was “above the OECD average and relatively high compared to all countries in the STRI sample.”

In the report, the Philippine score was 0.45 with one being the most restrictive. It was deemed more restrictive than Russia (0.38), Indonesia (0.37), Iceland (0.35), Vietnam (0.34) and Kazakhstan (0.31). The OECD average is 0.19.

“The relatively high average score is explained by the presence of barriers to foreign investment across a number of sectors, including professional services, construction services and distribution services. In addition, economy-wide barriers that affect all services sectors are predominant,” it said.

The OECD study also cited restrictions on foreigners acquiring and using real estate, localization requirements for foreign services, and the application of labor market tests to certain categories of services suppliers.

However, it noted a “progressive effort towards creating a supportive regulatory environment for services trade.”

“Compared to regional partners, the Philippines has a relatively open market for trade in some key transport and logistics services, as well as financial services and some services that underpin the digital economy,” it said.

It added that the barriers in professional services remain above the regional average and could be potential areas for reform.

The report concluded that air transport was least restrictive industry in the Philippines relative to the region.

“Conversely, engineering services, rail freight transport, architecture services and logistics customs brokerage are the sectors with the highest relative score,” it said.

It noted that the Philippines has carried out crucial reforms opening up the air transport, telecommunications, and financial services industries.

Among the reforms is the Public Service Act, which eliminated foreign equity limitations on key public services, including airports, railways, and telecommunications services. — Aubrey Rose A. Inosante

Pork MSRP could be imposed in March

PHILIPPINE STAR/ RYAN BALDEMOR

THE Department of Agriculture (DA) said on Wednesday that it may set a maximum suggested retail price (MSRP) for pork in March, pending results of a market study.

Secretary Francisco Tiu Laurel, Jr. said the DA was due to evaluate the initial findings of an ongoing study of pork prices within the day.

“The earliest (date to impose a price cap) will be in March,” Mr. Laurel said on the sidelines of price monitoring inspection at Commonwealth Market in Quezon City.

He said the DA wants to set a price that is “fair” for all members of the hog industry.

Fresh liempo (pork belly) currently sells for between P380 and P480 per kilo while kasim (shoulder) averages P350 to P420, according to DA price monitors.

Frozen kasim fetches an average of P253.56 per kilo, with frozen liempo at P311.33.

Mr. Laurel have been blaming middlemen for high prices, as well as high gasoline prices, slaughterhouse fees, and the cost to acquire hogs from farms. 

“We will study the entire value chain to analyze it well,” he said.

Mr. Laurel said that the full MSRP study expected to be completed by the end of the month. — Kyle Aristophere T. Atienza

P632-M Tagbilaran port expansion deal awarded

PPA PHOTO

A MANDAUE CITY construction company won the P632.29-million contract to expand the Port of Tagbilaran in Bohol, the Philippine Ports Authority (PPA) said.

In a notice of award dated Feb. 10, PPA said the contract for the expansion project was awarded to BNR Construction and Development Corp., which emerged as the low bidder.

BNR has 720 days to expand and upgrade the port, the PPA said.

According to the PPA bids and awards committee, the other bidders for the project were Bemkar Construction and Supply; Goldridge Construction and Development Corp.; WTG Construction and Development Corp.; Luzviminda Engineering; Sunwest, Inc.; UKC Builders, Inc.; and MRBII Construction Corp.

The PPA has a budget of about P16 billion until 2028 for infrastructure projects, including 14 flagship projects due to be completed before the current government steps down.

This year, the PPA said it expects sustained growth in cargo and passenger volumes due to strong demand. The goal for cargo throughput is 301.47 million metric tons. — Ashley Erika O. Jose

John Hay golf could become public-access course — BCDA

CAMP JOHN HAY GOLF CLUB FACEBOOK

THE Bases Conversion and Development Authority (BCDA) said it hopes to put up for auction this year the operations and maintenance (O&M) contract for the Camp John Hay golf course, which it is considering opening up to public access.

In a statement on Wednesday, the BCDA said it has set in motion plans to improve the facilities in Camp John Hay, in collaboration with the interim managers of the hotels and the golf course.

The BCDA tapped Landco Pacific Corp. and the consortium of Golfplus Management, Inc. (GMI) and DuckWorld Philippines as interim managers of the hotels and the golf course, respectively.

During the interim period, GMI and DuckWorld will assess the condition of the golf course and recommend long-term improvements to the facilities, the BCDA said.

“Among these is the rehabilitation of the irrigation system, which is crucial in the maintenance of the golf course. These recommendations will be implemented by the long-term O&M partner to be tapped by the BCDA,” it added.

BCDA President and Chief Executive Officer Joshua M. Bingcang said the target is to auction off the O&M deal within the year, once BCDA has determined a suitable model for golf operations.

“We want to emphasize that Camp John Hay is not only back in the government’s possession. It is now back with the Filipino people,” he said.

“We want to ensure that all Filipinos can enjoy the world-class leisure destinations within the camp, and we will do that while maintaining and improving the facilities and services,” he added.

According to the BCDA, the plan is to make the golf course available for public use while maintaining quality.

“The objective is to make it the best golf course in the Philippines and keep it accessible to the public,” Mr. Bingcang said.

“That’s the objective — everything should be the best. Not only the golf course, but eventually the facilities like the clubhouse, because that’s part of the whole experience,” GMI President Eduardo P. Arguelles said.

Meanwhile, Landco led the seamless transition of management in the John Hay Hotels to ensure uninterrupted provision of services at the Manor and Forest Lodge.

“Even during a challenging period of transition, the BCDA and Landco Pacific made sure that tourists and hotel visitors were not affected. The hotels remained open, and services did not cease even for a single minute,” Landco Lifestyle Ventures Head Patrick C. Gregorio said.

“We are here to help preserve the charm of Camp John Hay and strengthen Baguio’s tourism industry. And in turn, we are also helping transform local communities and spur economic opportunities so that progress is felt by all,” he added. — Justine Irish D. Tabile

CREATE MORE: A better version of the CREATE law

In November, Republic Act 12066 (otherwise known as CREATE MORE), which amended CREATE, was finally signed into law. The new law seeks to enhance the competitiveness of the Philippines’ incentive regime.

As we anticipate the issuance of the implementing rules in the coming weeks, enterprises registered with Investment Promotion Agencies (IPAs) are curious as to how this new law will potentially affect their registrations and incentives availments going forward.

Today, I’d like to discuss the salient features and significant changes under CREATE MORE that will directly impact registered business enterprises (RBE) insofar as their existing registered and future/new projects are concerned.

One of the notable changes is the coverage of the VAT zero-rating incentive enjoyed by RBEs. A lot of us may recall that before CREATE, all purchases of goods and services of RBEs were entitled to 0% VAT without distinction. However, CREATE limited this by providing that only expenses which are “directly and exclusively used” in the registered activity are entitled to VAT zero-rating. While the limitation was made with the intention of restricting the incentives to those expenses that actually formed part of the registered activities, several issues were raised during its implementation, particularly in determining which expenses or purchases qualified for these incentives. Eventually, this resulted in additional administrative requirements on both the RBEs and their suppliers, as they needed to prove that their expenses qualified for VAT zero-rating.

CREATE MORE now expands the coverage by using the term “directly attributable,” which refers to goods and services that are incidental to and reasonably necessary for the registered project or activity of the RBE. This includes janitorial security, financial, consultancy services, marketing and promotion, and administrative functions such as human resources, legal and accounting. Interestingly, these were the expenses that were previously specifically disallowed for VAT zero-rating in the implementing rules of CREATE. Thus, the amendment brings much relief to both RBEs and their suppliers. The IPA is vested with the authority to determine what is “directly attributable” depending on the registered project or activity of the RBE.

Another significant amendment under CREATE MORE is the reduction of the corporate income tax (CIT) rate applied to RBEs availing of the Enhanced Deductions (ED) incentive. Under CREATE, those under ED were generally subject to the 25% regular CIT. Under CREATE MORE, those availing of ED are now entitled to the lower CIT rate of 20% on income arising from the registered activity/project.

Contrary to some misconceptions, it is worth noting that the reduced CIT rate only applies to the RBEs availing of the ED incentive. Regular corporations not registered with IPAs are not entitled to the lowered CIT rate. The lower CIT rate for ED may have been introduced to make the ED regime a more viable option, along with the 5% Special Corporate Income Tax (SCIT) regime.

A crucial gap that CREATE MORE seeks to address is the imposition of Local Business Tax (LBT) on RBEs that are availing of the Income Tax Holiday (ITH) and ED incentives. While it is settled that those under the SCIT regime are paying the 5% in lieu of national and local taxes, the same is not clearly provided for those under ITH and ED. Even in practice, we have observed that Local Government Units (LGU) have differing views and rules on this issue.

CREATE MORE now includes an item specifically dedicated to RBE Local Tax (RBELT) among the list of incentives under Section 194 (F). Under this newly added provision, LGUs may pass an ordinance imposing an RBELT for those under ITH and ED, at a rate of not more than 2% of the RBE’s gross income. The 2% RBELT shall be in lieu of local fees and charges that the LGU imposes. No RBELT may be collected from RBEs under the SCIT.

As to the order of availment, under CREATE, the ITH should be availed of first, followed by SCIT or ED, with the choice between SCIT and ED required to be made at the start, when the RBE is applying for IPA registration. Under CREATE MORE, SCIT or ED may be availed of outright, without having to go through ITH first. This means that in the first year of commercial operations, the RBE may already enjoy either the SCIT or ED regime. This is expected to give RBEs flexibility especially if directly availing of SCIT or ED will be more beneficial to the company.

With respect to imports, the duty exemption incentive now covers capital equipment, raw materials, spare parts, or accessories “directly attributable” to the registered activity (instead of “directly and exclusively” under CREATE), and goods used for administrative purposes. Also, CREATE MORE now allows imports prior to issuance of the Certificate of Registration (CoR). In the past, registration with the IPA must be completed first, as evidenced by the CoR, before tax and duty-free imports are allowed.

Under CREATE MORE, imports prior to the issuance of the CoR are allowed on the condition that the RBE posts a performance bond or bank guarantee equivalent to the duties and taxes waived. While a performance bond will result in additional cost to RBEs, this is still expected to benefit them as it will reduce the time involved in setting up their facilities in preparation for the start of commercial operations.

In the spirit of Valentine’s Day, let me end this with a quote about hope that is often shared to those who have loved and failed — when love visits you again, may it be safe, secure, genuine and reassuring. May CREATE MORE (as an improved version of CREATE) give RBEs and investors such a level of assurance of the Philippines’ earnest efforts towards improving the investment landscape through the notable positive changes it offers.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Aimee Rose Dela Cruz is a director at the Tax Services department of Isla Lipana & Co., the Philippine member firm of the PwC network.

aimee.rose.d.dela.cruz@pwc.com

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Philippine military eyes upgrades including two ‘dream’ submarines

PHILIPPINE ARMY KALINAW NEWS

By Kenneth Christiane L. Basilio and Adrian H. Halili, Reporters

THE PHILIPPINES is looking to buy more military hardware to modernize its arsenal, including additional BrahMos missiles from India and at least two submarines, the chief of the armed forces said on Wednesday.

The Philippines is on the third phase of its modernization program called “Horizons.” It has earmarked $35 billion for the buildup over the next decade as it aims to counter China’s military might in the region.

“It’s a dream for us to get at least two submarines,” Armed Forces Chief of Staff General Romeo S. Brawner, Jr. said in a speech to key businessmen in Manila.

“We are an archipelago, so we have to have this type of capability because it’s really difficult to defend that entire archipelago without submarines,” he added.

In 2022, the Philippines bought $375 million worth of BrahMos anti-ship missile systems from India, and has orders for more. “We are getting more of this (system) this year and in the coming years,” Mr. Brawner said.

The Philippines earlier said it is eyeing mid-range missiles and at least 40 fighter jets to boost its defense capabilities.

It expects deliveries this year of at least two corvette vessels from South Korea, which last year elevated its ties with Manila to a strategic partnership.

Mr. Brawner said Manila is trying to get South Korea to join the Squad, a multilateral grouping composed of Australia, Japan, the Philippines and the US.

“This year, we’re going to get two corvettes from South Korea, [and] also the BRP Miguel Malvar that will be sailing this March to the Philippines,” he said. “We are getting one more this year. We are also getting two more landing docks and six offshore patrol vessels.”

The Philippines’ military buildup comes as tensions between Manila and Beijing have escalated in the South China Sea, where the two have clashed in recent years.

Mr. Brawner said the military has observed an increase in “illegal, coercive and deceptive” actions by China in the South China Sea. “We have seen also an increase in the number of vessels in the West Philippine Sea on a daily basis,” he added, referring to areas of the South China within its exclusive economic zone.

From 190 vessels in 2021, the Philippines is now seeing a daily average of 286 Chinese ships around Manila’s maritime zone, he said.

The Chinese Embassy in Manila did not immediately respond to a request for comment. Chinese authorities have said their actions in the region were lawful.

Mr. Brawner said a “joint maritime activity” with the US and Canada in Manila’s maritime zone in the South China Sea was under way. He said Manila is also eyeing joint activities with France, Italy and the UK. These activities are meant to ensure an effective presence in the South China Sea, he added.

“We are looking forward to having more of this with other countries such as Italy, the United Kingdom and France,” he told reporters on the sidelines of a security forum. “Before, we didn’t have joint sails with these countries but gradually, other nations such as those from Europe have developed an interest in our country.”

The Philippines started holding joint maritime exercises with foreign navies last year to promote an open Indo-Pacific region amid China’s increasing assertiveness in the South China Sea.

Mr. Brawner said the Philippines on Wednesday started joint sea drills with the US and Canada west of Mindoro province.

“Last week, we conducted our multilateral maritime cooperative activity or joint sails with the US and Japan. Today, we’re doing it with the US and Canada,” he added.

Meanwhile, Washington and Manila have committed to enhance cooperation in military modernization initiatives and defense capabilities, according to US Joint Chiefs of Staff Chairman Charles Q. Brown, Jr.

In a statement, the Joint Chiefs of Staff said Mr. Brown and Mr. Brawner talked on the phone to discuss ways to boost Philippine defense capabilities. They also discussed military sited under their Enhanced Defense Cooperation Agreement (EDCA) and increasing the scope and capacity of joint military exercises in the Philippines.

“The US continues to closely partner with the Philippines and remains committed to maintaining a strong alliance founded upon shared strategic interests and democratic values,” the agency said.

Mr. Brown is the highest-ranking and most senior military officer in the US Armed Forces and is the key military adviser of the President, National Security Council, Homeland Security Council and Defense secretary.

Also on Wednesday, Senator Francis N. Tolentino urged the President to form a separate maritime command focused on the South China Sea to improve the response capabilities of the Philippine Navy and Philippine Coast Guard.

“It is about time, for purposes of implementing the Philippine Maritime Zones law, that we create our own new command which is the West Philippine Sea Command for maritime security,” he told a news briefing. — with Reuters

NBI files complaint against VP Sara at DoJ for grave threats, inciting to sedition

VICE-PRESIDENT SARA DUTERTE-CARPIO — FACEBOOK.COM/MAYORINDAYSARADUTERTEOFFICIAL

By Chloe Mari A. Hufana and Adrian H. Halili, Reporters

THE National Bureau of Investigation (NBI) on Wednesday said it had filed a complaint for inciting to sedition and grave threats against Vice-President (VP) Sara Duterte-Carpio over her reported assassination threats against President Ferdinand R. Marcos, Jr., his wife and the Speaker.

The bureau has sent its findings to the Department of Justice’s (DoJ) Office of the Prosecutor General, NBI Director Jaime B. Santiago told a news press briefing.

The Vice-President faces a 12-year jail term if she is found guilty of the grave threat charges. Her office declined to comment when contacted by telephone.

“The person allegedly tasked with the assassination was not identified,” Mr. Santiago said in Filipino. “Hopefully, we can ask Ma’am Vice-President.”

The NBI summoned journalists and influencers present at Ms. Duterte’s November 2024 briefing where she allegedly threatened Mr. Marcos, his wife and presidential cousin and Speaker Ferdinand Martin G. Romualdez.

Ms. Carpio has denied having threatened them, adding that her words had been taken out of context.

The NBI complaint “has no basis in fact and in law,” Salvador S. Panelo, President Rodrigo R. Duterte’s legal counsel, told reporters in Viber message.

“It obviously is tainted with politics, and still part of the demolition job on her by her political enemies to put her out of contention in the presidential race of 2028,” he added.

Mr. Santiago said the decision to file a complaint against Ms. Duterte was based on evidence, adding that they had not been coerced by any politicians.

“We are apolitical,” he said in Filipino. “No one ordered or dictated to us what should be done with the case. The outcome of our investigation was based on the evidence.”

In a statement, DoJ spokesman Jose Dominic F. Clavano IV said they have received the NBI complaint.

“With the filing of the complaint, the case will now undergo evaluation and preliminary investigation before the National Prosecution Service,” he said. “The investigating prosecutors must determine whether, based on the evidence, there is a prima facie case with reasonable certainty of conviction.”

The process requires the respondent, Ms. Duterte, to submit a counter-affidavit. Prosecutors will review the evidence from both parties and rule on a possible indictment.

“It is not necessary that the recipient actually feels intimidated or takes the words seriously; what is crucial is that the statement was made with the purpose of creating intimidation or fear,” he said, referring to the grave threat charge. “This is what the prosecutors will evaluate based on the evidence presented.”

Mr. Clavano said the crime of inciting to sedition refers to statements that pose a real and imminent threat to public order regardless of whether actual unrest occurs.

He noted that while freedom of speech is protected, the Supreme Court has ruled it does not extend to speech that incites violence, rebellion or disorder.

“The law does not require that an unlawful act be carried out, only that the statement was made with the intent to stir public unrest or disrupt stability,” he added.

Ms. Duterte’s alleged assassination threat was one of the issues raised by civil society groups in their impeachment complaints against her.

Last week, the House of Representatives impeached her on charges of violating the Constitution, betrayal of public trust, graft and corruption and other high crimes.

Meanwhile, Senate President Francis G. Escudero said the NBI’s sedition and grave threat complaints against Ms. Duterte would not affect her upcoming impeachment trial at the Senate. “The NBI’s complaint has no effect on the impending impeachment proceedings,” he told reporters.

Mr. Escudero said the Senate would not use any evidence presented at the preliminary investigation by government prosecutors.

“An impeachment court, like any court, is a passive body. We will not do anything. This is not like a regular Senate investigation where we can issue a subpoena for certain evidence or witnesses to appear,” he said in mixed English and Filipino.

Last week, more than 200 congressmen filed and signed an impeachment complaint against Ms. Duterte. This met the more the one-third vote required by the Constitution for her to be impeached.

The House of Representatives sent the impeachment complaint to the Senate during the last day of the congressional session. Twenty-five more congressmen later endorsed the complaint.

The ouster charges consisted of seven articles of impeachment, including allegations of plotting the assassination of the President, misusing secret funds, amassing unexplained wealth and committing acts of destabilization.

Mr. Escudero earlier said the Senate could not hold the impeachment trial while in recess. The trial would likely start after the President’s State of the Nation Address on July 28 or once the 20th Congress begins.

Election watchdog says 55% of party-list groups don’t represent poor

PHILSTAR FILE PHOTO

MORE THAN HALF of the party-list groups participating in the 2025 Philippine midterm elections do not represent marginalized sectors, contrary to their mandate under the 1987 Constitution, according to election watchdog Kontra Daya.

In a statement on Wednesday, the watchdog said 86 of 156 party-list groups or for 55%, have links to political dynasties, big business or the police and military.

“It appears that 55% of those running do not represent the marginalized and underrepresented, especially in the case of those linked to political clans and big business,” it said.

Among the top-performing party-list groups in the December 2024 and January 2025 polls by Social Weather Stations (SWS), seven have been flagged by Kontra Daya for their connections to political dynasties, large corporations, or security forces.

These groups include 4Ps, ACT-CIS, Duterte Youth, Ako Bicol, FPJ Bantay Bayanihan, Tingog Sinirangan, and TGP.

“They are among the 86 party-list groups flagged by Kontra Daya. Aside from the three reasons — ties with political clans, big businesses or the police and military — the other grounds for flagging are cases connected to pork barrel, plunder, graft and corruption; dubious advocacy and not enough information,” Kontra Daya said.

It called for greater public scrutiny of party-list nominees.

Kontra Daya expressed concerns about the lack of transparency in the information provided by some nominees in their Commission on Elections (Comelec) filings.

It noted that many nominees only gave general details about their professions, leaving voters in the dark about their qualifications and affiliations.

The watchdog said Filipino voters should examine all 10 nominees per party-list group rather than just the top three, which typically receive the most attention due to the three-seat cap for party-list representation.

Hansley A. Juliano, a political science lecturer from the Ateneo de Manila University, said the party-list system is now dominated by political dynasties and their allies, with little effort to conceal their true colors.

“However, the fact that programmatic and organizational parties have failed to grow means this trend will persist and will continue to crowd out the parties,” he told BusinessWorld in a Facebook Messenger chat.

The campaign period for party-lists started on Tuesday, but district representatives may only begin campaigning on March 28.

Up for grabs in the May 12 elections are 317 congressional seats and thousands of local posts. The biggest battle will be for 12 spots in the 24-seat Senate, a chamber packed with political heavyweights and wielding outsized influence. — Chloe Mari A. Hufana

Philippine stocks rebound on bargain hunting

BW FILE PHOTO

PHILIPPINE SHARES rebounded on Wednesday as investors hunted for bargains and gains on Wall Street spilling over to the local market.

The bellwether Philippine Stock Exchange index (PSEi) rose by 0.94% or 56.38 points to close at 6,044.13, while the broader all shares index increased by 0.33% or 12.16 points to end at 3,619.19.

“After four straight days of decline, the local market bounced back this Wednesday as bargain hunters took opportunities,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“The PSEi corrected higher after US stock markets mostly gained for the second straight day,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Wall Street’s main indexes ended mixed on Tuesday as gains in Coca-Cola and Apple offset losses in Tesla, while investors parsed Federal Reserve Chair Jerome Powell’s latest comments, Reuters reported.

The US central bank is in no rush to cut its short-term interest rate again given the economy is “strong overall,” with low unemployment and inflation still above the Fed’s 2% target, Mr. Powell said in opening remarks at a Senate Banking Committee hearing.

The S&P 500 climbed 0.03% to end the session at 6,068.50 points.

The Nasdaq declined 0.36% to 19,643.86 points, while the Dow Jones Industrial Average rose 0.28% to 44,593.65 points.

“Philippine shares closed higher as the latest MSCI rebalancing results reflected the latest inflow and outflow from the quarterly review,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Following its February index review, MSCI said Gokongwei-led companies JG Summit Holdings, Inc. and Universal Robina Corp. were removed from the MSCI Philippines Standard Index and were included in the MSCI Philippines Small Cap Index. Food and beverage manufacturer Monde Nissin Corp. was also added to the MSCI Philippines Small Cap Index.

The changes will take effect at the market’s close on Feb. 28.

All sectoral indices posted gains on Wednesday. Holding firms climbed by 1.34% or 67.87 points to 5,115.77; services rose by 0.79% or 15.34 points to 1,947.44; industrials went up by 0.53% or 45.53 points to 8,534.32; financials increased by 0.49% or 11.02 points to 2,254.32; property added 0.43% or 9.73 points to end at 2,252.84; and mining and oil inched up by 0.05% or 4.32 points to 7,430.23.

“Monde Nissin Corp. was the top index gainer, jumping 5.96% to P8.00. Emperador, Inc. was the main index laggard, falling 4.42% to P12.10,” Mr. Tantiangco said.

Value turnover inched up to P5.85 billion on Wednesday with 533.86 million issues traded from the P5.82 billion with 478.95 million shares exchanged on Wednesday.

Decliners beat advancers, 103 versus 74, while 64 names were unchanged.

Net foreign selling went down to P455.51 million on Wednesday from P655.18 million on Tuesday. — R.M.D. Ochave with Reuters

Peso steady before US consumer inflation data, BSP meeting

THE PESO ended flat against the dollar on Wednesday, with the market waiting for the release of January US consumer inflation data overnight and the Bangko Sentral ng Pilipinas’ (BSP) policy meeting on Thursday.

The local unit closed unchanged at P58.19 per dollar on Wednesday, Bankers Association of the Philippines data showed.

The peso opened Wednesday’s session slightly weaker at P58.20 against the dollar. Its intraday best was at P58.14, while its worst showing was at P58.24 versus the greenback.

Dollars traded went up to $1.24 billion on Wednesday from $1.194 billion on Tuesday.

The peso mostly traded sideways against the dollar before the US consumer price index (CPI) data release overnight and the BSP’s policy decision on Thursday, a trader said in a phone interview.

The peso was flat as the dollar was likewise steady before the January US CPI data, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

A BusinessWorld poll showed that 19 out of 20 analysts expect the BSP to cut benchmark borrowing costs by 25 basis points (bps) for a fourth straight meeting to bring the policy rate to 5.5%.

BSP Governor Eli M. Remolona, Jr. earlier said that a rate cut is “on the table” at this week’s review.

He said they may slash benchmark rates by a total of 50 bps this year as “policy insurance” against risks, with the cuts likely to be done in 25-bp increments each in the first and second half.

For Thursday, the trader expects the peso to move between P58 and P58.40 per dollar, while Mr. Ricafort sees it ranging from P58.10 to P58.30

The dollar held mostly steady against other major currencies on Wednesday as traders awaited US inflation data, though remarks from Federal Reserve Chair Jerome H. Powell a day earlier lifted US yields and lent some support against the yen.

The dollar rose 0.7% to 153.53 yen, breaking above its 200-day moving average, but elsewhere it was steady, trading at $1.0358 per euro.

Mr. Powell, in testimony on Capitol Hill on Tuesday, stuck to a view there was no hurry to lower interest rates, which pushed 10-year Treasury yields up about 4 basis points.

US CPI was set to be published at 1330 GMT and economists polled by Reuters expect core consumer inflation to increase slightly to 0.3% for January.

Money market traders have scaled back bets on Fed rate cuts this year and are now only fully pricing in one quarter-point cut, with around a 40% chance of a second.

Speculators in the currency market are long dollars and some may be nervous that a softer reading could stoke expectations for rate cuts and force an unwind of wagers on a higher dollar. — A.M.C. Sy with Reuters

More than 1,200 LGUs have started automating public services — Marcos

PRESIDENT Ferdinand R. Marcos, Jr. addressed over 1,400 municipal mayors at the 2025 League of Municipalities of the Philippines general assembly at the Manila Hotel on Wednesday. — PHILIPPINE STAR/RYAN BALDEMOR

OVER 1,200 local government units (LGUs) have now initiated automation efforts to enhance efficiency and transparency in public service delivery, President Ferdinand R. Marcos, Jr. said on Wednesday.

The administration is focusing on streamlining and digitalizing bureaucracy to make government services more efficient, through initiatives like the Electronic Business One-Stop Shop (eBOSS), Mr. Marcos said during the League of Municipalities of the Philippines General Assembly in Manila City.

“As of last year, 113 out of 1,634 LGUs have fully complied with the eBOSS requirement. Meanwhile, over 1,200 LGUs have now initiated automation efforts to enhance their transactions,” he noted.

To further accelerate digitalization, the government has developed the eLGU platform, a ready-to-use eBOSS system that has been adopted by 741 LGUs as of 2024.

“Critical government frontline services are becoming more transparent and accessible,” Mr. Marcos said.

The administration is also rolling out the Modernized Philippine Government Electronic Procurement System to improve efficiency and transparency in public procurement.

With features such as a Virtual Store, e-Wallet, e-Payment, and e-Marketplace, the system aims to simplify processes, enhance accountability, and safeguard public funds.

The president underscored the need for the country to keep pace with global technological advancements, warning that nations failing to embrace innovation risk being left behind.

“Understanding and maximizing technology is essential to improving public services,” he said in Filipino.

Meanwhile, the government is also ramping up environmental initiatives, with 22,200 barangays participating in clean-up activities last year under the Kalinga at Inisyatiba Para sa Malinis na Bayan program.

Mr. Marcos highlighted the urgency of addressing climate change’s impact at the municipal level, urging LGUs to adopt proactive measures to protect communities.

The League of Municipalities in the Philippines convened local chief executives, with the aim to empower them with advocacy tools, strategic frameworks and collaborative opportunities to drive improvements in their communities. — Chloe Mari A. Hufana