The Philippine economy in 2025

February 12, 2025 | 12:03 am

hand-reaching-out-towards-city-skyline — FREEPIK

The Philippine’s GDP grew at 5.6% for the whole year of 2024, pulled down by the usual non-performer and Achilles heel of the Philippine economy, the Agriculture, Forestry and Fishing (AFF) sector that contracted at 1.6%. Services grew by 6.7% while industry expanded 5.6%. Although the GDP growth was below the Government’s target of 6% to 6.5% (close to the average of the last 14 years, with the exception of the pandemic years), at 5.6%, the Philippines is still ranked, together with India and Vietnam, as among the fastest growing economies in the Indo-Pacific region and in the whole world.

This should not be, however, a consolation to our leaders because, as I have written time and again in the past, we should be growing at 8% or more if we want to reduce the scandalously high poverty incidence of 16% for the whole country (and more than 30% in many regions, especially in Mindanao) to single-digits by the end of the Marcos Jr. Administration. All of our peers in the ASEAN region have poverty incidences of zero to five percent!

The encouraging news is that 2025 can see GDP growth of at least 6.5% because of a combination of global and domestic forces that can lift the volume of production of the national economy. As in previous global economic crises (the East Asian Financial Crisis of 1997 to 2000, the Great Recession of 2008 to 2012, and the COVID-19 pandemic from 2020 to 2022), the Philippines will be one of the least negatively impacted by the global economic slowdown that will be precipitated by the tariff wars that US President Donald Trump has already launched so very early in his presidency.

As we have analyzed over the last 25 years, the Philippines is practically immune to global economic crises because of its very low export-to-GDP ratio, which currently stands at 27% (as contrasted with 100% to 150% of neighbors like Singapore, Hong Kong, Vietnam, etc.). Our weakness in global trade becomes a strength during times of crisis. As practically all large, medium-, and small-scale enterprises in the country can attest to, their business predominantly depends on the domestic demand generated by 120 million people residing in the country.

Consumers will continue to be loaded with purchasing power from the $40 billion of OFW remittances, which will have greater purchasing power because the exchange rate will continue to depreciate at the P58 to P59 level. The moves of the Trump Government to deport residents will hardly include Filipinos in the US because they don’t belong to the “criminal illegal immigrants.” In fact, they are among the most helpful to the American public as nurses, caregivers, tourist workers, teachers, and even IT professionals.

Also, the information technology-business process outsourcing (IT-BPO) industry of the Philippines, which now employs some 1.7 million workers, is not being targeted by the MAGA policy of President Trump. They are doing work that Americans are reluctant to do. Besides, our leaders in the BPO-IT sector are so pro-active that they are quickly reskilling, retooling, and upskilling their workers in order to meet the threat of their replaced by Artificial Intelligence. Unemployment is being reduced as industry is actively promoting Enterprise Based Learning to reduce the mismatch between the output of our schools and the demand of industry for specific skills. Also, the Bangko Sentral ng Pilipinas (BSP) is expected to continue easing interest rates even if the US Federal Reserve pauses in its cutting interest rates due to the possibility of inflation being re-ignited in the US because of all the tariffs that Trump is imposing on imports. Lower interest rates in the Philippines can encourage higher consumption. With expert management of our BSP, inflation has been brought down to a low of 2-3%.

On the expenditure side, government spending boosted GDP growth by increasing 9.7% in 2024. Consumer spending and Gross Capital Formation (Investment) were muted at 4.7% and 4.1%, respectively. Both exports and imports grew at a lackluster rate of 3.2%.

Election-related spending will be especially high in the first semester of 2025, ironically benefiting from the very controversial manipulation by Congress of the budget by which funds originally meant for education and health were diverted to pork barrel items that will help the incumbent politicians to buy votes. This temporary boost to GDP growth, however, does not justify the misallocation of scarce resources, especially since we are so far from investing the required 6% or more of GDP which our ASEAN neighbors are spending on education. The same thing can be said of the need to jack up the percentage of GDP spent on public health. It is hoped that the President will take greater control of the budgeting process and make sure that the tinkering with the budget by members of Congress does not happen again next year. He still has time to prevent the raid on public coffers by politicians who are using the so-called ayuda (assistance) to increase their pork barrel funds.

On the investment side, we can expect higher investments from the US and Japan, in line with the advocacy of their governments to construct the Luzon Economic Corridor which is meant to relocate a significant part of the US and Japanese chips manufacturers now operating in China. The Philippines has a reasonable chance of attracting some of these higher-value electronics and semi-conductor firms away from China (and Taiwan) because the governments of our ASEAN neighbors (Indonesia, Thailand, Malaysia, and Vietnam) have decided to join the so-called BRICS (Brazil, Russia, India, China, South Africa) intergovernmental grouping being promoted by China and Russia to counter the political and economic influence of the US in the Indo-Pacific region. There are also African and Latin American nations that have joined this new version of BRICS*. It was wise for President Ferdinand “Bongbong” Marcos, Jr. to decide not to join this political grouping. We can be sure that President Trump will take note of this despite the fact that the Luzon Economic Corridor idea was conceived during the time of his predecessor, Joe Biden.

Another reason why President Trump will exempt us from the harshest MAGA measures is that we have two of his closest advisers, Secretary of State Marco Rubio and multi-billionaire Elon Musk, very well disposed towards the Philippines.

When Mr. Rubio appeared before the US Senate for the confirmation of his appointment as Secretary State, I counted that he mentioned the Philippines at least four times. He was constantly insisting on how the US has a serious responsibility to help the Philippines (and Taiwan), because we are the closest ally of the US in this region.

Elon Musk also manifests a certain special attachment to the Philippines. He is putting his money where his mouth is in the numerous Starlink satellite connections he is installing on many of our isolated islands. He also has started selling his Tesla electric cars here, even while realizing that it would be difficult for him at this time to compete price-wise with the BYD car of the Chinese.

I partly attribute his fondness for us because of our “young and growing” population. He very frequently refers to the “demographic suicide” that many advanced countries have committed, leading to very low fertility rates and a rapidly ageing population, including China. I am sure he will always put us in a good light when he advises President Trump on his foreign policy towards the Indo-Pacific region.

Fortune shines on us during this Year of the Snake. This optimistic note about the economy should partly counter the pessimistic expectation that once again, in the coming May elections, the electorate will vote for many unqualified candidates to the Philippine Senate.

*Current membership consists of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates.

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

mWell acquires Ayala group’s KonsultaMD

February 12, 2025 | 12:03 am

METRO PACIFIC HEALTH Tech Corp. (mWell) has signed a deal with the Ayala group to acquire its telehealth company, KonsultaMD.

The acquisition of KonsultaMD was formalized on Tuesday, mWell said in an e-mail statement. The value of the deal was not specified.

KonsultaMD is a telehealth platform of Globe’s corporate venture builder 917Ventures under the Ayala group, while mWell is the digital healthcare arm of Metro Pacific Investments Corp. (MPIC).

“Progress for any country depends on a healthy citizenry. This agreement represents a giant step forward towards real, immediate, and reliable care for our countrymen,” mWell Chairman and MPIC Manuel V. Pangilinan said.

KonsultaMD will continue to keep its brand and operate under MPIC and mWell management in the interim following the acquisition, ensuring continued access to key services while enhancing healthcare delivery.

“This acquisition supports our common vision of delivering accessible and inclusive healthcare solutions to every Filipino,” Ayala Corp. Chairman Jaime Augusto Zobel de Ayala said.

The integration of the KonsultaMD and mWell platforms will expand MPIC’s reach, linking more patients to its nationwide hospital and healthcare network.

“By integrating our resources with KonsultaMD, we are well-positioned to provide expansive and high-quality healthcare to all Filipinos, both locally and globally,” mWell President and Chief Executive Officer (CEO) Chaye Cabal-Revilla said.

Established in 2015, KonsultaMD offers health services including 24/7 doctor consultations, diagnostics, medicine delivery, and homecare. It has 2.7 million users and a wide network of partner doctors.

For its part, mWell is a health and wellness app that has 3.1 million users. Its global reach includes over 90,000 users from across Asia, South America, Africa, North America, Oceania, and Europe.

“Bringing together the power of mWell’s digital ecosystem and KonsultaMD’s comprehensive services and expansive reach will ultimately benefit Filipino consumers. This synergy will help us more swiftly achieve our shared goal of providing healthcare for all,” Globe President and CEO Ernest L. Cu said.

MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

Arts & Culture (02/12/25)

February 12, 2025 | 12:03 am

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Heroes of Remedios Hospital honored at San Agustin

THE World War II Malate Grave Project will culminate on Feb. 13, 2 p.m., with a ceremony at the San Agustin Church in Intramuros, Manila. The event, scheduled in time for the 80^th anniversary of the Battle of Manila, includes a funeral mass, procession, and re-interment of exhumed commingled mass grave remains of the heroes of Remedios Hospital in the San Agustin Crypt. It is the culmination of the five-year Malate Grave Project, a groundbreaking forensic archeological and anthropological project centered on a long-forgotten civilian mass grave site discovered at the Malate Catholic School in late 2019. Then an emergency hospital for American prisoners of war, the site was bombed by Allied Forces in February 1945. The aerial assault destroyed the hospital and killed Columban priest John Lalor of Malate Church and a number of hospital volunteers and patients, including the Filipino scientist Maria Orosa.

Romance filmmakers conclude Benilde film fest

IN celebration of the love month, the Film Department of De La Salle-College of Saint Benilde invites movie enthusiasts to watch LIGAW! BenildeFilm Romance Festival and then attend a roundtable on Valentine’s Day itself to listen to makers of romance films discuss the anatomy of a love story. The two days feature a total of 14 short romance films – 10 by Benildeans and four by Far Eastern University and University of the Philippines students. The screenings will be held at the Benilde Design and Arts Campus 12F Screening Room on Feb. 12 and 13, from 6 to 8 p.m. The Romcom Filmmakers’ Roundtable will be on Feb. 14, 11 a.m., at the same venue. Guest panelists include director Petersen Vargas and Star Cinema screenwriter and producer Daisy Cayanan Mejares. Pre-registration is required through this link: bit.ly/LIGAWPreReg.

PPO holds Concert V: HOPE on Feb. 14

ON Feb. 14, the Philippine Philharmonic Orchestra (PPO) will commemorate the fallen heroes of World War II with the fifth installment of its 40^th concert season entitled HOPE. The multi-sensory concert, accompanied by Adam Ustynowicz and Piotr Forkasiewicz’s film illustrations, will tackle love and loss during Poland’s Warsaw Uprising in 1944 and remember the Manila Massacre in the Philippines in 1945. Slated on Valentine’s Day, at 7:30 p.m., at the Metropolitan Theater, PPO Concert V: Hope honors the shared tragic past of Poland’s Warsaw and the city of Manila with melodies from Wings of Hope: A Warsaw-Manila Peace Tribute.

Orley Ypon at Galerie Joaquin Rockwell

GALERIE JOAQUIN is presenting the works of a master of Philippine realism, Orley Ypon, in the exhibit Pag-ibig sa Tinubuang Lupa. An artist’s reception will be held on Feb. 13, 5 p.m. The exhibit marks a significant new development in his oeuvre, featuring a series of landscapes that reflect the artist’s personal experiences of Cebu, Cavite, and other places integral to his identity. The title of the exhibition is drawn from Andres Bonifacio’s patriotic poem, “Pag-ibig sa Tinubuang Lupa.” It will run from Feb. 11 to 22 at Galerie Joaquin Rockwell, located at the R3 Level, Power Plant Mall, Makati City.

PAMANA: A Legacy of Philippine Art at drybrush Gallery

THERE will be an exhibit featuring nine artists whose combined artistic journey spans over half a century. Each over 70 years of age, the artists come together to share not just their artworks, but also their legacy with future generations. The exhibition, titled PAMANA: A Legacy of Philippine Art, features the works of Nelson Castillo, Juno Galang, Romeo Gutierrez, Prudencio Lamarroza, Nemi Miranda, Rodolfo Samonte, Caesar Sario, Fernando Sena, and Turs Simsuangco. It runs from Feb. 1 to 28 at the drybrush Gallery, SM MOA Square, 2^nd level of the IKEA Building, Pasay City.

Spanish classical guitarist Miguel Trápaga holds 3 concerts

INTERNATIONALLY acclaimed Spanish guitarist Miguel Trápaga will perform in a series of concerts featuring one of his latest projects, The Guitar in the Time of Manuel de Falla. The concerts will be on Feb. 17, 6:30 p.m., at the University of the Philippines Diliman; Feb. 19, 2 p.m. at the University of Santo Tomás, and Feb. 21, 7 p.m., at Instituto Cervantes in Intramuros. The concerts are presented by the Instituto Cervantes de Manila, the Embassy of Spain in the Philippines, and the Spanish Agency for Cooperation, in collaboration with the UP College of Music and the Conservatory of Music of UST. The program, The Guitar in the Time of Manuel de Falla, features a carefully curated selection of compositions that highlight the vibrant and evocative spirit of Spanish music. These include Isaac Albéniz’ Asturias, Capricho Catalán, and Torre Bermeja; Manuel M. Ponce’s Suite in A Minor (Prélude, Allemande, Sarabande, Gavotte I et II, Gigue); Federico Moreno-Torroba’s Sonatina (Allegretto, Andante, Allegro); Manuel de Falla’s Homenaje a Debussy, Romance del Pescador, Canción del Fuego Fatuo; and Joaquín Turina’s Sonata for Guitar, Op. 61 (Allegro, Andante, Allegro Vivo). The three performances are free of charge, but seating is limited. Reservations can be made through the following link: https://forms.office.com/e/sXJCJsA1wq.

Carlos art book, collaboration with Ken Samudio

TO mark the 75^th birthday of the artist Carlos, Galeria Paloma will be launching a coffee-table book survey of his works, and his collaboration with accessories designer Ken Samudio. These accompany his exhibit Catching Paradise, a one-man show at Art Fair Philippines at the Ayala Triangle Gardens from Feb. 21 to 23. Carlos’ self-titled coffee-table book is a compilation of over 100 artworks that includes his early work as a full-time artist, serving as both a retrospective and an intimate look at his creative process. Signed copies of the book will be available for purchase at the fair or through the gallery. Meanwhile, the limited-edition collaboration features Ken Samudio translating Carlos’ colorful, vivid paintings into beaded minaudières.

Bamboo Organ Festival gala and concerts

THE Bamboo Organ Festival, now celebrating its 50^th year, will open with a special gala featuring musicians from around the world. The unique concert will see the performers play instruments heard in processions in Intramuros during the 17^th century. The performers include Belgian soprano Alice Foccroulle, alto Ily Matthew Maniano, Italian tenor Riccardo Pisani, bas Lanselle Nantes, Japanese violinist Shio Ohshita, Belgian organist Bernard Foccroulle, French and German cornetto players Lambert Colson and Friederike Otto, and Dutch sackbut players Guy Hanssen and Bart Vroomen, and sackbut player Ricson Poonin. The concert will be held on Feb. 20, 8 p.m. at Las Piñas’ St. Joseph Bamboo Organ Church. Two gala tickets cost P10,000. Marian Vespers will be held on Feb. 21 and 22, 8 p.m. Meanwhile, Spanish organist Vicenç Prunés will hold a two-part concert on Feb. 23, 8 p.m., with Part 1 at the St. Joseph Bamboo Organ Church and Part 2 at the Johann Trummer Auditorium at St. Joseph Academy in Las Piñas. There will then be a two-part Organ Recital with Swiss organist Guy Bovet on Jan. 24, 8 p.m., at the church and the auditorium. The UP Los Banos Choir and organist Armando Salarza will perform in a concert called The Splendor of Choral Music on Feb. 27, 8 p.m., at the San Ezekiel Moreno Oratory. The final concert in the festival is called Night of My Favorites, featuring popular artists, on March 1, 8 p.m., at the Saint Joseph Academy Hall. For tickets to the concerts and further details, visit Bamboo Organ Foundation, Inc.

Virgin Labfest 2026 welcomes new entries

THE Virgin Labfest (VLF), the annual theater festival of untried, unstaged, and untested one-act plays, is looking for a new batch of written works for its 21^st season. Twelve new plays will be selected to be produced and staged at the Cultural Center of the Philippines in June 2026. The deadline for submission is on Feb. 28, at 11:59 p.m. Submissions may be sent online in .doc or .pdf format only to thewritersblocinc@gmail.com. The call for scripts is open to Filipino citizens only. The playwrights of the chosen scripts must be willing to undergo a script development process for their works with the festival’s creative team. The plays will be formally announced at the end of the VLF 20 in June 2025.

160-km Freedom March to honor WWII heroes

THE legacy of valor and sacrifice continues as descendants of Filipino and US World War II veterans, alongside military personnel, government officials, members of the diplomatic community, students, and families, take part in the annual Freedom March. This historic event commemorates the 83^rd anniversary of the Battle of Bataan and honors the heroic endurance of those who endured the infamous Bataan Death March. The Philippine Veterans Bank, in partnership with the Philippine Veterans Affairs Office and the Department of National Defense, will once again lead this solemn tribute on March 1 and 2. The 160-kilometer (km) commemorative walk traces the exact historical route of the Death March, starting from Mariveles, Bataan, and concluding in Capas, Tarlac. The Freedom March extends an open invitation to all who wish to honor the bravery of Filipino and American soldiers. Interested participants may register at https://forms.gle/npJJggx3jxCoMLzS6. Registration is free.

Janine Barrera, Francis Davigny exhibit at AFM

THE works of Janine Barrera and Francis Dravigny will be on display at Alliance Française de Manille (AFM) from Feb. 13 to March 15, with a vernissage on Feb. 12, 6:30 p.m. Co-presented by the Qube Gallery, the exhibit presents the works of two internationally recognized artists who share a connection to the Philippines, either as a homeland or as an adopted sanctuary. Their art explores the interplay between nature, identity, and storytelling. Ms. Barrera’s oil on canvas works embody a sophisticated abstraction of the nearly there, while Mr. Dravigny’s mixed-media creations incorporate fabric, embroidery, and indigenous Philippine materials such as raffia and abaca. Both artists converge in their shared fascination with trees, delving into the details of the natural world.

Roldan, Langenegger solo exhibits at Silverlens Manila

FROM Feb. 13 to March 15, Silverlens will be holding two solo shows in its Manila gallery. One is Norberto Roldan’s No Winter Lasts Forever, which follows his 2024 residency at the DAAD Artists-in-Berlin Program in Germany, where he captures a structured, everyday life in winter through found objects. Meanwhile, Visionary Position by Robert Langenegger presents a speculative world of paintings that is both fictionalized and historically graphic. Both shows run at Silverlens Manila, Chino Roces Ave. Ext., Makati City.

Nyoy and Mikkie Bradshaw-Volante join Into The Woods

THEATRE Group Asia (TGA) has announced that seasoned theater performers and real-life couple Nyoy and Mikkie Bradshaw-Volante will play The Baker and The Baker’s Wife in its production of Stephen Sondheim’s Into The Woods which will be staged in August at the Samsung Performing Arts Theater, Makati City. They will be joining previously announced members of the cast, Lea Salonga who will play the Witch, and her son Nic Chien who will play Jack. Early access sign-ups are available until Feb. 20 via theatregroupasia.com.

THINKaMuna Pilipinas a finalist in the Asia Design Prize

THINKaMuna Pilipinas, the Media and Information Literacy (MIL) sustainability advocacy of the MediaQuest Group, has announced its recognition as a finalist in the Communication category of the Asia Design Prize for 2025. This award celebrates outstanding design across the Asia-Pacific region, recognizing innovation, creativity, and customer experience. THINKaMuna Pilipinas is the first Philippine entry in the Asia Design Prize and is also the first to be selected as a finalist from 1,879 entries across 22 countries. In partnership with PLDT, Smart, and the Kapisanan ng mga Brodkaster ng Pilipinas, the advocacy is aimed at advancing MIL in the Philippines through creative use of media, amidst an evolving digital landscape. The project showcases design elements created by Media5, the creatives group of TV5, in line with the MediaQuest Group’s commitment to empower Filipinos by promoting critical thinking to combat disinformation. The Asia Design Awards started in 2016 and are judged by a panel of internationally renowned design experts from all over Asia. It is organized by DESIGNSORI, the design media of Korea. The winners will be announced at the awards ceremony held in Seoul, Korea on March 26.

HSBC acquitted of charges of violating Korea’s short-selling rules

February 12, 2025 | 12:03 am

HSBC Holdings Plc was acquitted by a South Korean court of charges that the bank engaged in illegal short selling, a blow to the government’s efforts to rein in abuses in the stock trading practice.

In its ruling Tuesday, the Seoul Southern District Court said there was no evidence that HSBC employees knew of the rule violation before carrying out the trades in question, according to Yonhap.

The ruling comes after South Korean prosecutors investigated and indicted the bank and three traders at HSBC’s Hong Kong unit in March on allegations of conducting naked short selling — a practice of selling shares without securing them first — amounting to about 15.8 billion won ($10.9 million).

The case, closely watched by overseas investors, resulted in what the local media reported to be the first indictment against a foreign bank on charges related to naked short selling. HSBC has previously argued that the Korean prosecutors’ approach was “arbitrary” and the verdict likely reassures foreign investors who are calling for loosening of stock trading rules in the country.

“We are pleased with today’s decision in favor of HSBC,” an HSBC spokesperson said in an e-mail statement. “There was no intention to breach any Korean short selling regulations and we are looking forward to putting this matter behind us.”

Korean regulators plan to lift in March a temporary ban on short selling. But they plan to keep the ban on naked short selling, responding to retail investors and others who say the tactic renders unfair advantages to foreign institutional investors. The practice is “rampant,” they said.

In pursuing its case against HSBC, the prosecutors’ office sought to fine the bank 300 million won.

In March, the bank had acknowledged “unintentional breaches” of the Korean short selling regulations, and said it took fast remedial action to address them and paid $5.6 million in fine. But the bank also said in the statement then that indicting HSBC and individuals was unwarranted and disproportionate to the local regulatory findings.

In October, South Korean prosecutors also indicted BNP Paribas SA for allegedly violating short-selling rules. The Securities and Futures Commission also fined in December Barclays Plc and Citigroup, Inc. 13.7 billion won and 4.7 billion won, respectively, for alleged naked short selling.

Lifting the short selling ban, which has been in place since November 2023, would help remove one of the barriers in Korea’s bid for a market upgrade from index operator MSCI, Financial Services Commission Chairman Kim Byoung-hwan said in September. — Bloomberg

Would you vote for this one?

February 12, 2025 | 12:02 am

This week marks the start of the official campaign period for national positions, in view of the elections on May 12. Then again, the election circus has gripped the country way before today. There has been political infighting, intrigues, the trading of accusations, the shifting of loyalties. The Filipino people are no strangers to the heightened political activity preceding the elections.

The question is, how much of what we are seeing now will actually factor into our votes and ultimately the results?

We have always complained that our electorate bases its decisions on personalities rather than issues. This is true. Results of early surveys show that those most likely to win, if elections were held on the day the survey was taken, are candidates who are either popular media figures, or belonging to families with prominent last names, or affiliated with big names with a powerful mass base.

Thankfully, there is a promise of a growing awareness among our people of the issues that the country faces and that require the attention and action of the officials we elect into office.

A Social Weather Stations survey conducted from Jan. 17 to 20 this year, and commissioned by the Stratbase Institute, found that issues that would make Filipinos vote for candidates remain largely economic in nature.

Among these issues: increasing job opportunities (94%), development of agriculture and ensuring food security (94%), strengthening of the healthcare system (93%), equal access to education (92%), workers’ rights and OFW welfare (92%), reducing the poverty and hunger of Filipinos (87%), addressing the impacts of climate change and enhancing disaster preparedness (87%), controlling the prices of basic services and goods (85%), defending national security and sovereignty in the West Philippine Sea (83%), and the achievement of energy security and the usage of renewable energy (82%).

Some of these issues are linked and what emerges from the survey is the understanding that Filipinos’ top priority continues to be their economic security. Food security, for instance, ranks high up and this should guide our officials into keeping a laser-like focus on something that affects each Filipino directly and intimately — a literal gut issue. Job security will allow our people to imagine being able to provide for their families on a sustained basis. We must find a way to address the underutilization of Filipino talent; unlocking the full potential of our workforce is essential for driving economic progress and fostering inclusive growth.

The prices of goods and services are always a good barometer of the economy. On Feb. 5, the Philippine Statistics Authority (PSA) announced that inflation was at 2.9% in January, the same level it was in the previous month. This is supposed to be a positive indication, but the survey says otherwise. For a majority of respondents, the Marcos Jr. administration could do better. Fifty-eight percent believe that the solutions provided to control inflation are insufficient, while only 16% said they were sufficient. The perceived insufficiency was most noted in Mindanao at 65%, and the National Capital Region at 60%.

We see, ultimately, that official figures matter less than the actual experience of people in their daily lives. For example, as of December 2024, nearly 26% of Filipino families have experienced involuntary hunger — going without food at least once in the past three months. Coupled with food prices continuing to rise, it is no surprise that many Filipinos still feel trapped by the burden of inflation.

It comes as no surprise that fewer Filipinos now have “much trust” in both the President and Vice-President. The decline in numbers is likely due to the growing frustration over the government’s weak response to rising inflation. Indeed, having the majority of the Filipino people say this month that the government’s inflation control solutions are insufficient should be a wake-up call to our leaders.

And if we demand this much from the two top leaders of the land, we will expect no less from the legislators and local officials that we will be considering for the May elections. They are, after all, the people who would introduce laws and policies, and who would implement these policies at the ground level.

Thus, as the national campaign kicks off in earnest this week, both candidates and voters should be mindful of what elections in a democracy truly demands of them. Specifically, candidates should have a clear-cut agenda based on observable, measurable evidence of what needs to be done, instead of merely relying on political machinery, name recall, and even the persona that they project to the public.

Meanwhile, voters have an even greater and more consequential responsibility. We must stop thinking of ourselves as mere receivers of government action and passive reactors to whatever is done, or not done, by our leaders. We have operated with this mindset for far too long — and look where it has gotten us. Instead, let us take back our agency and carefully weigh whether a candidate’s name truly deserves to be on our ballot. The answer to this relies not on a prominent last name, or charm, or a recent handout, but a careful evaluation of their track record, expertise, and an actual plan to address the gut issues that are most important to us.

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

Advanced treatments for prostate cancer with Mount Elizabeth Hospital’s Dr. Poh Beow Kiong

February 12, 2025 | 12:02 am

When cancer cells enter the male reproductive system, the prostate gland is in serious trouble. Nonetheless, advancements have significantly improved treatment, allowing for easier recovery among patients. Urologist Dr. Poh Beow Kiong of Gleneagles and Mount Elizabeth Hospitals discusses these minimally invasive and holistic treatments.

For inquiries, please contact Mount Elizabeth Hospital’s patient assistance center, IHH Healthcare Singapore – Philippine Office, located at G/F-B, Marco Polo Hotel, Meralco Avenue and Sapphire Street, Ortigas Center, Pasig City 1600, e-mail manila.ph@ihhhealthcare.com or call 0917-526-7576.

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SMIC eyes long-term growth via consumption-driven strategy

February 12, 2025 | 12:02 am

SY-LED SM Investments Corp. (SMIC) said consumption will drive the conglomerate’s long-term growth plans, led by its core businesses in the property, banking, and retail sectors.

“The Philippine economy remains consumption-driven, and SMIC is well-positioned to support and capture this demand. Our strong ecosystem — spanning retail, banking, and property — enables us to navigate challenges while delivering long-term value,” SMIC President and Chief Executive Officer Frederic C. DyBuncio said in an e-mail statement on Tuesday.

Citing a report by equity research firm CLSA, SMIC said its retail segment is poised to benefit from minimum wage increases, sustained remittances, and consumer spending resilience despite macroeconomic uncertainties.

CLSA also said that wage adjustments and higher remittances are projected to support household spending, particularly in essential categories.

“We anticipate spending behavior to continue to favor staples (essential items) over discretionary, with minimarts still driving growth,” it said.

SMIC said its minimart chain Alfamart aims to sustain expansion this year. Since its first store in 4, Alfamart increased its store count to 2,100, mainly in Luzon and Metro Manila.

“We continue to see strong demand for essentials, with minimarts playing an essential role in serving everyday consumer needs,” Mr. DyBuncio said.

CLSA also noted SMIC’s synergies across its portfolio, particularly the earnings and mall network of real estate unit SM Prime Holdings, Inc. and the financial services of BDO Unibank, Inc.

“Our businesses complement each other — our expanding retail footprint enhances mall traffic, while BDO provides financial solutions that fuel both consumption and enterprise growth. These synergies allow us to build resilience and create shared value for our stakeholders,” Mr. DyBuncio said.

SM Prime currently has 87 malls in the Philippines, with planned expansion towards the provinces to meet demand in Northern Luzon, Visayas, and the progressive cities in Mindanao.

Last week, SM Prime announced that it is allocating up to P33 billion this year for the expansion and development of its commercial real estate portfolio, with some P21 billion to increase the gross floor area of the malls business.

SMIC shares rose by 0.13% or P1 to P794 apiece on Tuesday. — Revin Mikhael D. Ochave

EVOxCharge eyes more EV charging stations in PHL

February 12, 2025 | 12:02 am

By Beatriz Marie D. Cruz, Reporter

ELECTRIC VEHICLE (EV) solution startup EVOxCharge, Inc. expects to increase its charging stations and users in the Philippines as more brands enter the EV market.

“It is our vision to establish 1,000 charging stations in the next five years either through partnership with establishments or through our own charging stations,” EVOxCharge Vice-President and General Manager Derrick John Tolentino said in an e-mailed reply to questions.

EVOxCharge, a unit of logistics company Transnational Diversified Group, Inc. set up in 2022, supplies, operates and maintains an EV charging infrastructure.

EVOxCharge has 25 commercial charging stations to date and is looking to establish 100 more locations by yearend, Mr. Tolentino said. It also expects its users to double to 500 this year, with an annual growth of at least 50% in the next couple of years.

EVOxCharge expects the adoption of both EVs and its infrastructure to increase in the next two years.

“This will be spurred by the arrival of established brands that are positioning themselves aggressively in the market, and as the Electric Vehicle Industry Development Act is implemented, the guidelines for implementing the key rules will be stricter and well established,” he said.

The company is bullish that demand for its EV charging infrastructure, driven by the increasing adoption of EVs and the need for accessible and reliable charging solutions.

“Beyond providing a basic utility, there is growing interest in turning the charging infrastructure into a revenue-generating asset through features like dynamic pricing, subscription models and partnerships with commercial establishments,” Mr. Tolentino said.

With increasing demand, businesses are also expected to provide user-friendly mobile applications to support users’ charging experience and improve the management of charging stations.

Recognizing that EV adoption is still in its early stages, EVOxCharge plans to focus on market penetration over achieving significant revenue growth, Mr. Tolentino said.

“To fuel our expansion, we are actively exploring funding opportunities from various sources including clean energy funds from various institutions,” he added.

EvoXCharge has a mobile app and web platform that allows seamless digital payments, charger operation and real-time location services.

To ensure the efficient and reliable operation of its charging stations, the app also serves as a back-end system for monitoring, support and data analysis.

“The core vision of EVOxCharge is to enable EV owners to easily locate and operate chargers without human intervention,” Mr. Tolentino said.

Witnesses describe wordless knife attack on Salman Rushdie, The Satanic Verses author

February 12, 2025 | 12:02 am

Salman_Rushdie,_2024---commons.wikimedia.org — SALMAN RUSHDIE — COMMONS.WIKIMEDIA.ORG

MAYVILLE, New York — Jurors heard on Monday how an attacker stabbed novelist Salman Rushdie more than a dozen times in a matter of seconds at a New York lecture, during the trial of the man accused of trying to murder the author.

A poet introducing the 2022 talk, on the subject of keeping writers safe from harm, was barely into his second sentence when defendant Hadi Matar bounded onto the Chautauqua Institution open-air stage and made about 10 running steps towards a seated Rushdie, Chautauqua District Attorney Jason Schmidt told the jury.

“Without hesitation, upon reaching Mr. Rushdie, he very deliberately and forcefully and efficiently at speed plunged the knife into Mr. Rushdie over and over and over and over and over again,” Mr. Schmidt said. Eyewitnesses who testified on Monday said they heard no words from the assailant, and that Mr. Rushdie was quickly soaked in blood.

The trial ended for the day and is due to continue on Tuesday.

Mr. Rushdie, who spent most of the 1990s in hiding in the UK after receiving death threats over his 1988 novel The Satanic Verses, was stabbed about 15 times: in the head, neck, torso, and left hand, blinding his right eye and damaging his liver and intestines.

Mr. Rushdie, 77, is due to testify about his injuries at the Chautauqua County Court in Mayville, New York, a few miles north of the Chautauqua Institution, a rural arts haven.

Mr. Matar, 26, has pleaded not guilty to a charge of second-degree attempted murder and second-degree assault. The latter charge is for wounding Henry Reese, the co-founder of Pittsburgh’s City of Asylum, a non-profit group that helps exiled writers, who was conducting the talk with Mr. Rushdie that morning. Mr. Reese is also due to testify.

Jurors will see videos of the attack, which some 1,000 audience members witnessed, and Mr. Matar’s arrest, and will hear from the Erie trauma surgeon who treated Mr. Rushdie after he had lost catastrophic volumes of blood, Mr. Schmidt said.

Mr. Matar said “Free Palestine, free Palestine,” as he walked past the public gallery after entering the courtroom, dressed in a blue shirt and dark pants, before the jury was brought in.

His lead defense lawyer, Nathaniel Barone, has been hospitalized with an illness, Mr. Barone’s colleagues told the court, but Judge David Foley denied their request to delay proceedings.

Lynn Schaffer, a public defender representing Mr. Matar, told the jury in her opening statement that the prosecution would fail to prove the necessary element of intent beyond reasonable doubt. She told them that none of the evidence Mr. Schmidt would present would show why Mr. Rushdie was attacked that day.

She referred to some evidence that Mr. Schmidt had cited: the pass Mr. Matar had bought to enter the Chautauqua Institution on Aug. 12, 2022, the morning of Mr. Rushdie’s appearance.

“Those gate passes are reflective of an intent to come in and watch a lecture, to watch a show,” Ms. Schaffer said.

FATWA AGAINST RUSHDIE
Mr. Rushdie was born into a Muslim Kashmiri family in India and is now a US citizen. In 1989, he went into hiding under the protection of British police after Ayatollah Ruhollah Khomeini, then Iran’s supreme leader, pronounced The Satanic Verses to be blasphemous.

Khomeini’s fatwa, or religious edict, called upon Muslims to kill the novelist and anyone involved in the book’s publication, leading to a multi-million-dollar bounty and the 1991 murder of Rushdie’s Japanese translator, Hitoshi Igarashi.

The jury has heard no mention of the fatwa or the threats against Mr. Rushdie. Mr. Schmidt, the district attorney, has said it is irrelevant to proving the crime of attempted murder took place.

The Iranian government said in 1998 it would no longer back the fatwa, and Mr. Rushdie ended his years as a recluse, becoming a fixture of literary gatherings in New York City, where he lives.

After the attack, Matar told the New York Post he had traveled from his home in New Jersey after seeing the Rushdie event advertised because he disliked the novelist, saying Rushdie had attacked Islam. Matar, a dual citizen of his native US and Lebanon, said in the interview he was surprised that Rushdie survived, the Post reported.

On Monday, two employees of the Chautauqua Institution who were at the amphitheater that morning testified about the attack. Deborah Sunya Moore, the institution’s chief program officer, recalled being handed the knife after it had been taken from Mr. Rushdie’s assailant by audience members who rushed on stage.

On Monday, it was inside a cardboard box on the prosecutors’ table.

If convicted of attempted murder, Matar faces a maximum sentence of 25 years in prison.

Matar also faces federal charges brought by prosecutors in the US attorney’s office in western New York, accusing him of attempting to murder Mr. Rushdie as an act of terrorism and of providing material support to the armed group Hezbollah in Lebanon, which the US has designated as a terrorist organization.

Mr. Matar is due to face those charges at a separate trial in Buffalo. — Reuters

Fed to wait on next rate cut as tariffs risk inflation flare-up

February 12, 2025 | 12:02 am

US Federal Reserve Chair Jerome H. Powell — REUTERS

BENGALURU — Faced with the threat of rising inflation, the US Federal Reserve will wait until next quarter before cutting rates again, according to a majority of economists in a Reuters poll who previously expected a March cut.

Economists have raised their inflation forecasts since US President Donald J. Trump was elected, based on concerns his policies, particularly on tariffs, could re-ignite price pressures in the economy.

After cutting rates by a cumulative 100 basis points between September and December, Fed officials, including Chair Jerome H. Powell, have recently said they are “not in a hurry” to lower rates further.

With a strong job market and still solid consumer spending, many economists see the world’s largest economy in a sweet spot, with little need for lower rates.

So far, there have been new tariff announcements every week.

Mr. Trump said on Sunday he would impose new 25% tariffs on all steel and aluminium imports. The White House delayed its plan to increase trade barriers on Mexico and Canada until March 1 but has levied an additional 10% tariff on imports from China.

“The tariffs are inflationary and could be quite negative for economic growth as well. That uncertainty just means the Fed is sort of left waiting and wanting to see what actually does happen,” said James Knightley, chief international economist at ING.

“There’s lots and lots of moving parts to the policy thrust of Donald Trump, and some of them are somewhat contradictory. It’s very, very challenging, and so confidence in any of our forecasts around the US economy, and by extension global economic activity, is pretty low right now.”

While a near-60% majority of economists in a January poll had expected the central bank to reduce rates in March, they were divided in the Feb. 4-10 poll on when the Fed will cut next.

A two-thirds majority of forecasters, 67 of 101, expected at least one rate cut by end-June with 22 saying March and 45 in the second quarter.

Only 17 of 99 economists with end-2025 forecasts said the next cut will come in the second half of the year, and 16 expected no cuts this year.

Interest rate futures are pricing in just over a 50% probability of one rate cut by mid-2025.

Although poll medians predict the Fed will lower rates twice this year, reaching 3.75%-4% by end-2025, the range of forecasts is wide, from a low of 3%-3.25% and a high of 4.5%-4.75%. There is no majority view.

But economists were more certain about inflation pressures.

Over 90% of common contributors between the October survey — conducted just before the US presidential election — and the latest poll raised their 2025 annual inflation forecast, by around 40 basis points on average.

Nearly 60% of respondents, 27 of 46, who answered an additional question said US inflation risks from tariffs have gone up recently. A further 17 said no change, with only two saying they had gone down.

“The uncertainty is likely enough to keep Fed officials on the sidelines over the coming months, and if high tariffs are ultimately imposed then the subsequent rise in inflation will prevent further easing over the remainder of 2025,” noted Neil Shearing, group chief economist at Capital Economics.

After growing an annualized 2.3% last quarter, the US economy will expand 2.2% this year and 2.0% in 2026, faster than what Fed officials currently see as the non-inflationary growth rate of 1.8% over coming years, poll medians found.

The unemployment rate, which ticked down to 4% last month, was forecast at 4.2% this year and 4.1% next. — Reuters

The hot money in commodities is betting on the tropics

February 12, 2025 | 12:01 am

rubber-tree-bowl-filled-with-latex_1150-10344 — RUBBER — FREEPIK

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LOOKING for an investment idea that’s paid off handsomely in commodities markets over the past six months? Try betting on the tropics.

Tropical forest crops constitute four of the best performers among major commodity futures since early August. Coffee (in both its more flavorsome arabica and basic robusta varieties) has more than doubled in price, as my colleague Javier Blas has written. Rubber, cocoa, and palm oil are all up by more than 20% over the same period. Coconut oil, though not widely traded, is also doing well: Spot prices in Amsterdam are up about 27%.

That’s no reason to celebrate. Uniquely vulnerable to the vagaries of the weather, tropical forest crops are like canaries in the coalmine of global warming. The money being made by commodity traders right now is the flipside of the losses being shouldered by wildfire-hit homeowners in the US — a harbinger of the financial damage that climate change will wreak across the world as the century wears on.

For all that production of these crops straddles three continents, they’re largely produced in a handful of places. Just six countries — Brazil, Indonesia, Ivory Coast, Malaysia, Thailand, and Vietnam — account for 87% of the world’s palm oil, 71% of rubber, 59% of cocoa beans, and 55% of coffee.

With such a concentration of supply, bad weather in one region can be enough to knock the whole global market off balance. In Brazil, the worst drought in four decades has hindered the flowering of coffee plants, as well as burning rainforest and sugarcane fields, and drying up of the dams that provide two-thirds of the country’s electricity.

Downpours and floods in West Africa’s cacao country and Southeast Asia’s rubber and oil palm plantations have had a similar effect, killing off buds, causing fruit to rot on the trees, and preventing farmers getting to their plantations to harvest the crop.

Those disastrous conditions across three continents are connected, and growing more so as a warming climate causes regional weather systems to link up. The La Niña cycle that has predominated for most of the past five years tends to bring dry conditions to southeastern Brazil and wet weather to West Africa and Southeast Asia, as moisture in the South Atlantic and Indian Oceans is driven eastwards.

Some of this comes with the territory of tropical agriculture. Plants in temperate latitudes and the subtropics tend to be more resilient to bad growing conditions, because they evolved to cope with seasonal swings in temperature and rainfall far more dramatic than you’ll find in the tropical rainforest belt closest to the equator.

Tropical plants, however, are far more fragile. Make the weather a degree or so hotter, and photosynthesis weakens, pests proliferate, and yields decline. One 2020 study found that 41 of 190 tropical species studied will be experiencing temperatures so warm by 2070 that their seeds will be unable to grow. Climate change represents an “existential threat” to production of tropical fruits such as bananas, mangoes, and papaya, according to another study last year.

Making matters worse, all the four commodities currently experiencing surging prices are produced by trees. A Brazilian soybean farmer has some scope to factor in whether El Niño or La Niña is approaching when deciding how many hectares to sow each year, helping mitigate the impacts of the weather and rebalance the market. Tree plantations are decade-long projects, however, so there’s hardly any ability to compensate by adjusting plantings. Crops that are also grown in subtropical and temperate regions, as well as the rainforest belt (such as corn, soybeans, tea, and sugar), are similarly less exposed, and have seen little evidence of price spikes of late.

The final piece of the puzzle comes from looking at the financial conditions of the people producing them. Supply of all four is dominated by smallholders, who typically farm only a few hectares and use the commodities they grow as cash crops to supplement a meager subsistence livelihood.

As the impacts of a warming planet intensify, “climate adaptation” has become a key concept for farmers in rich countries — investing in new seed strains, better nutrients, or more sophisticated methods of water management, harvesting, and crop rotation to offset the damage being wreaked by the weather.

That all costs money, however, and there’s few people in the entire global agriculture industry with less to spare than the farmers of tropical forest crops. Smallholder farmers, after all, make up the biggest share of the 700 million worldwide living in extreme poverty of less than $2.15 per day.

Higher prices like those we’re seeing now typically spur such investment. But tropical smallholders are notoriously bad at capturing the value from their supply chains, with most of the benefit flowing to processors, traders, and the handful of global companies that sit on top.

That suggests relief is far off. If you’re hoping to take your mind off the darkening reality of climate change with snack foods, a latte, a chocolate bar or a drive in the country, you’ll be paying more for the privilege for a good while yet.

BLOOMBERG OPINION

CREIT says credit rating sustained

February 12, 2025 | 12:01 am

SAAVEDRA-LED Citicore Energy REIT Corp. (CREIT) has sustained its PRS Aa+ credit rating with a “stable” outlook from credit rating agency Philippine Rating Services Corp. (PhilRatings).

The company also maintained the same rating for its ASEAN Green Bonds, it said in a media release on Tuesday.

Citing a statement from PhilRatings, CREIT said the rating was based on its fully occupied portfolio of green assets, reputable shareholders, strong profitability with high margins, sound financial position, and more-than-satisfactory liquidity.

“Sustaining the PRS Aa+ credit rating from PhilRatings, for both the company as an issuer and the company’s maiden ASEAN Green Bond, is a testament to the company’s strong financial position and profitability…,” said CREIT President and Chief Executive Officer Oliver Tan.

“We intend to continue as a platform that empowers investments, ensuring that our debt instruments are trusted by creditors and investors,” he added.

According to PhilRatings, the issuer credit rating signifies the “overall creditworthiness of a company, evaluating its ability to meet all its financial obligations within a time horizon of one year,” with the stable outlook indicating that the rating is expected to remain unchanged over the next 12 months.

Issue credit ratings of PRS Aa, meanwhile, are of high quality and subject to very low credit risk, with the obligor’s capacity to meet financial commitments deemed very strong.

In February 2023, CREIT listed its oversubscribed maiden ASEAN Green Bond offering amounting to P4.5 billion.

The proceeds were used to acquire value-accretive properties, expanding the company’s green asset portfolio to its current 7.1 million square meters.

CREIT said its current land parcels form part of the expansion pipeline of its sponsor, Citicore Renewable Energy Corp., which aims to achieve a five-gigawatt capacity within five years.

CREIT is the Philippines’ first real estate investment trust focused on renewable energy. It specializes in owning sustainable infrastructure projects, including income-generating renewable energy properties across the country.

At the local bourse on Tuesday, shares in the company closed unchanged at P3.20. — Sheldeen Joy Talavera