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South Korea announces emergency measures for auto industry hit by US tariffs

SEOUL – South Korea on Wednesday announced emergency support measures for its auto sector, seeking to reduce the blow of U.S. President Donald Trump’s tariffs on a sector that has seen years of sharply rising exports to the United States.

The measures include financial support for the auto industry as well as tax cuts and subsidies to boost domestic demand, while the government also vowed efforts to negotiate with the U.S. and help expand markets.

Mr. Trump has announced a 25% tariff on imported cars and light trucks starting on Thursday. Manufacturers are expected to bear some of the tariff costs in the first year, but will eventually alter production and possibly cease importing certain low-volume models into the U.S. market.

“Given the (lower) proportion of South Korean automakers’ local production in the United States, our industry is comparably at a disadvantage,” the government said in a statement.

The tariff was expected to cause “significant” damage to South Korean automakers and auto parts manufacturers, though it was difficult to come up with numerical estimates at the moment, the government said.

To help prevent any liquidity issues, the government will raise policy financing support for the auto industry to 15 trillion won ($10.18 billion) in 2025 from the 13 trillion won previously planned, according to the statement.

The government will lower taxes on automobile purchases to 3.5% from the current 5% until June 2025 and raise electric-vehicle subsidies to 30%-80% of price discounts from the current 20-40% with the period extended by six months to the end of this year.

The government said it would also actively support automakers’ efforts to expand export markets in the “Global South”, which refers to less developed countries in Africa, Latin America and Asia, where demand is growing.

Regarding U.S. tariffs, the government said: “We will do our best to ensure that the U.S. does not treat South Korea in a disadvantageous way compared with other allies, through negotiations and by strengthening bilateral cooperation,” without details.

The auto industry welcomed the support plan, but said further discussions were needed on more tax benefits to boost domestic demand. “There is a lot of concern in the auto industry about whether this alone will be enough,” an industry official told Reuters, speaking on condition of anonymity because he was not permitted to speak to the media.

In 2024, South Korea’s exports of automobiles to the United States stood at $34.7 billion, accounting for 49% of its total auto exports.

Hyundai Motor said last week that it plans to keep sticker prices on its current model lineup steady for the next two months in an effort to ease customer concerns that the fallout from tariffs will impact dealer lots.

The program runs until June 2, and comes after the South Korean group’s $21 billion investment in the U.S. announced last month.

Hyundai Motor’s co-CEO Jose Munoz said there were no plans to raise prices in the United States, Hyundai’s biggest revenue-generating market.

Analysts said that Mr. Trump may have a preference to propose aggressive tariffs in order to extract quick concessions in a negotiation, adding that auto tariffs will put upward pressure on input costs for vehicles in general. Relative to the combustion engine vehicle supply chain, the electric vehicle (EV) supply chain would likely suffer a bigger impact due to a dependence on China for EV parts. – Reuters

TSMC could face $1 billion or more fine from US probe, sources say

REUTERS

Taiwan Semiconductor Manufacturing could face a penalty of $1 billion or more to settle a U.S. export control investigation over a chip it made that ended up inside a Huawei AI processor, according to two people familiar with the matter.

The U.S. Department of Commerce has been investigating the world’s biggest contract chipmaker’s work for China-based Sophgo, the sources said. The design company’s TSMC-made chip matched one found in Huawei’s high-end Ascend 910B artificial intelligence processor, according to the people, who requested anonymity because they were not authorized to speak publicly about the matter.

Huawei – a company at the center of China’s AI chip ambitions that has been accused of sanctions busting and trade secret theft – is on a U.S. trade list that restricts it from receiving goods made with U.S. technology.

TSMC made nearly three million chips in recent years that matched the design ordered by Sophgo and likely ended up with Huawei, according to Lennart Heim, a researcher at RAND’s Technology and Security and Policy Center in Arlington, Virginia, who is tracking Chinese developments in AI.

The $1 billion-plus potential penalty comes from export control regulations allowing for a fine of up to twice the value of transactions that violate the rules, the sources said.

Because TSMC’s chipmaking equipment includes U.S. technology, the company’s Taiwan factories are within reach of U.S. export controls that prevent it from making chips for Huawei, or producing certain advanced chips for any customer in China without a U.S. license.

Heim said that based on the design, which is for AI applications, TSMC should not have made the chip for a company headquartered in China, especially given the risk that it could be diverted to a restricted entity like Huawei.

Shares of TSMC traded in the U.S. erased a nearly 3% gain to trade slightly lower after the news.

Penalizing TSMC comes at a critical moment for U.S.-Taiwan relations as the two begin re-negotiating their trading relationship after Trump last week slapped a 32% levy on imports from Taipei. The tariffs exclude chips, but Trump has said his team is looking at levies on semiconductors.

In March, TSMC said at the White House that it plans to make a fresh $100 billion investment in the United States that includes building five additional chip facilities in coming years.

Reuters could not determine how the Trump administration will proceed with TSMC or when the matter would be resolved. Top officials have said they plan to seek higher penalties for export violations.

A spokesperson for the Commerce Department declined comment. TSMC spokesperson Nina Kao said in a statement that the company is committed to complying with the law. She added that TSMC has not supplied to Huawei since mid-September 2020 and that they are cooperating with the Commerce Department.

Speaking to reporters in Taipei on Wednesday, Taiwan Economy Minister Kuo Jyh-huei said TSMC is a company that respects laws and regulations, but his ministry has not received any notification about a possible fine and he could not comment further.

No public action has been taken against TSMC. But typically, Commerce issues a “proposed charging letter” to a company it believes has engaged in prohibited conduct. The letter usually cites the dates alleged violations took place, the value, and the formula for a civil penalty, and it gives the company 30 days to respond.

 

MORE ENFORCEMENT

At a conference in Washington last month, U.S. Commerce Secretary Howard Lutnick spoke about the role of export control enforcement in addressing the threat from China.

“We are going to seek in this administration a dramatic increase in enforcement and fines for people who break the rules,” Mr. Lutnick said. “We have had enough of people trying to make a dollar supporting the people who seek to destroy our way of life.”

Jeffrey Kessler, who was confirmed in March as Under Secretary of Commerce for Industry and Security to oversee U.S. export controls, was more targeted at his Feb. 27 nomination hearing, saying that reports of TSMC chips going to Huawei was “a huge concern” and that “strong enforcement” was critical.

A 10-figure fine for export control violations would be rare. In 2023, BIS imposed a $300 million penalty on Seagate Technology Holdings STX.O as part of a settlement over its shipping over $1.1 billion worth of hard disk drives to Huawei, as first reported by Reuters.

TSMC first came under scrutiny last fall. TechInsights, a Canadian tech research firm, took apart a Huawei 910B AI accelerator and found a TSMC die, as it’s also called, in the multi-chip system.

After the TechInsights finding, TSMC suspended shipments to Sophgo and, in November, as Reuters reported, the Commerce Department ordered the chipmaker to halt shipments to China of seven-nanometer or more advanced chips that could be used in AI applications.

In January, Sophgo, which in October denied any business relationship with Huawei, was placed on the same Commerce department restricted trade list as Huawei. Sophgo could not be reached for comment.

Huawei’s Ascend 910B has been viewed as the most advanced mass-produced AI chip available from a Chinese company, providing an alternative to California-based industry leader Nvidia. – Reuters

Trump issues order to block state climate change policies

US PRESIDENT-ELECT Donald J. Trump is set to assume office on Jan. 20, 2025. — REUTERS

U.S. President Donald Trump issued an executive order on Tuesday that aims to block the enforcement of state laws passed to reduce the use of fossil fuels and combat climate change.

The move is the latest in a string of efforts by Trump’s administration to pump up domestic energy output and push back against largely Democratic-led policies to curb carbon emissions. It came just hours after Mr. Trump, a Republican, issued orders to increase coal production.

The order directed the U.S. attorney general to identify state laws that address climate change, ESG initiatives, environmental justice and carbon emissions, and to take action to block them.

“Many States have enacted, or are in the process of enacting, burdensome and ideologically motivated ‘climate change’ or energy policies that threaten American energy dominance and our economic and national security,” the order said.

Mr. Trump specifically cited laws in New York and Vermont that fine fossil fuel companies for their contribution to climate change, California’s cap-and-trade policy, and lawsuits by states that have sought to hold energy companies accountable for their role in global warming.

The two Democratic governors who co-chair the U.S. Climate Alliance – Kathy Hochul of New York and Michelle Lujan Grisham of New Mexico – said states could not be stripped of their authority and would not be deterred by the executive order.

“We will keep advancing solutions to the climate crisis that safeguard Americans’ fundamental right to clean air and water, create good-paying jobs, grow the clean energy economy, and make our future healthier and safer,” they said in a joint statement.

The Alliance is a group of 24 governors dedicated to climate action.

The American Petroleum Institute, an oil and gas trade group, praised the order.

“We welcome President Trump’s action to hold states like New York and California accountable for pursuing unconstitutional efforts that illegally penalize U.S. oil and natural gas producers for delivering the energy American consumers rely on every day,” API Senior Vice President Ryan Meyers said in a statement. – Reuters

US to ‘take back’ Panama Canal from Chinese influence, visiting Pentagon chief says

By Camilo Molinaderivative work: MrPanyGoff - https://www.flickr.com/photos/milhoooox/1454717385/sizes/l/in/set-72157603216901000/Uploaded by MrPanyGoff, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=18722432

PANAMA CITY – The United States will “take back” the Panama Canal from Chinese influence, U.S. Defense Secretary Pete Hegseth said on Tuesday during a visit to the Central American nation.

After talks with Panama’s government, Mr. Hegseth vowed to deepen security cooperation with Panamanian security forces and said China would not be allowed to “weaponize” the canal by using Chinese firms’ commercial relationships for espionage.

“Together, we will take back the Panama Canal from China’s influence,” Mr. Hegseth said, speaking at a pier renovated with U.S. assistance in Panama City.

“China did not build this canal. China does not operate this canal and China will not weaponize this canal. Together with Panama in the lead, we will keep the canal secure and available for all nations.”

More than 40% of U.S. container traffic, valued at roughly $270 billion a year, goes through the Panama Canal, accounting for more than two-thirds of vessels passing each day through the world’s second-busiest interoceanic waterway.

Mr. Hegseth, the first U.S. defense secretary in decades to visit Panama, flew over the canal in a Black Hawk helicopter after meeting U.S. troops and Panamanian security forces. He also toured the Miraflores lock, waving to sailors passing through on a container ship.

His language appeared fine-tuned, talking tough but offering some assurances to Panamanians still unsettled by Mr. Trump‘s threats to reclaim the canal.

While Mr. Hegseth spoke about removing Chinese influence, Trump has spoken in broader terms and not ruled out using military force.

Mr. Hegseth’s trip follows reports that the Trump administration has requested options from the U.S. military to ensure access to the canal, which the United States built more than a century ago and handed over to Panama in 1999.

Mr. Trump has complained that was a bad deal for the United States.

Given Mr. Trump’s tough rhetoric, the stakes were high for Mr. Hegseth’s visit.

“On the whole, this hasn’t been a winning issue for the United States in terms of public diplomacy in Panama,” said Ryan Berg, director of the Americas Program at the Center for Strategic and International Studies.

Still, current and former U.S. officials and experts say the United States has found a willing partner in tackling Chinese influence in Panama’s President Jose Raul Mulino, whom Mr. Hegseth met earlier on Tuesday.

In February, Mr. Mulino announced Panama’s formal move to exit China’s Belt and Road Initiative and he has aided Trump’s crackdown on migrants.

He has accepted deportation flights of non-Panamanians and worked to stem migration from South America by those crossing through his country’s dangerous Darien jungle.

Mr. Hegseth praised Mulino, saying his government understood the threat from China, and his remarks about Panama being in the lead on addressing the canal’s security concerns appeared to be a nod to Panamanian sensitivities.

During his visits to bases, which once had names including Fort Sherman and Rodman Naval Station before the U.S. exit, Mr. Hegseth spoke about the canal as “key terrain” and held out hope for more frequent engagements by U.S. troops, including by revitalizing a jungle survival training center.

“In reality or in perception, the communist Chinese have had designs on more control of this canal, and to that we say: Not on our watch,” Mr. Hegseth told U.S. troops and Panamanian security forces. “We will grow our partnership even more.”

Mr. Hegseth, a U.S. military veteran and former Fox News host, has enthusiastically backed Trump’s southern-focused security agenda, by means such as dispatching U.S. troops to the U.S. border with Mexico, offering space at a base at Guantanamo Bay, Cuba to detain migrants, and military aircraft for deportation flights.

 

U.S. SECURITY CONCERNS

Mr. Trump has falsely claimed that China is operating the canal, something even Mr. Hegseth said was not true on Tuesday, and that Chinese soldiers are present.

But experts acknowledge U.S. security concerns, particularly regarding espionage, with an expansive Chinese commercial presence in Panama that also includes plans by Chinese firms to build a bridge over the canal.

“China has never been involved in the management and operation of the Panama Canal, nor has it ever interfered in the affairs of the canal,” said a statement by the Chinese Embassy in Panama.

“The only time in history the canal has been cut off was because of a U.S. invasion. Who is truly safeguarding the canal’s neutrality and prosperity? Who keeps clamoring to ‘take back’ the canal? Who is the real threat to it?”

Last month, Mr. Trump celebrated a deal led by U.S. firm BlackRock to buy most of the $22.8-billion ports business of Hong Kong conglomerate CK Hutchison, including its ports on either end of the Panama Canal.

Mr. Trump said the purchase was an example of how the United States was “reclaiming” the canal.

But China has criticized it, with the market regulator saying it will carry out an antitrust review of the deal.

Current and former U.S. officials say the Panama Canal would be critical for the passage of U.S. warships during any future conflict in Asia, since Navy vessels would transit from the Atlantic to the Pacific to support the war effort.

Even without blocking the canal, China could keep tabs on vessels passing through it.

Still, John Feeley, who was U.S. ambassador to Panama from 2015 to 2018, disputed the Trump administration’s assertion that China’s presence in Panama was a violation of the U.S.-Panama treaty.

“What’s not legitimate about the way Trump has gone about this is the bullying tactic that he’s used, which is to claim that there has been a violation of the neutrality treaty. There hasn’t been,” Mr. Feeley said.

Mr. Mulino has defended Panama’s administration of the canal, saying it has been handled responsibly for world trade, including that of the United States, and that it “is, and will continue to be, Panamanian.” – Reuters

US says it is alarmed by American academic’s arrest in Thailand

STOCK PHOTO | Image by 4711018 from Pixabay

WASHINGTON – The U.S. State Department said on Tuesday it was alarmed by the arrest in Thailand of American academic and U.S. citizen Paul Chambers who was charged with insulting the monarchy, in a rare prosecution of a foreigner under one of the world’s strictest lese-majeste laws.

Local police said Chambers, a lecturer at Thailand’s Naresuan University, reported to a precinct in the northern province of Phitsanulok after a warrant for his arrest was issued last week following a complaint filed by the army.

Thailand’s monarchy is protected by Section 112 of the country’s penal code, which says anyone found guilty of defaming, insulting or threatening the king, queen, heir apparent or regent shall be punished with imprisonment of three to 15 years.

Chambers was also charged with a computer crime violation.

“As a treaty ally of Thailand, we will closely monitor this issue and advocate for the fair treatment of Paul Chambers,” the State Department said in a statement.

“This case reinforces our longstanding concerns about the use of lese majeste laws in Thailand. We continue to urge Thai authorities to respect freedom of expression and to ensure that laws are not used to stifle permitted expression,” it added.

Thai royalists consider the monarchy sacrosanct. Public discussion of the law has for decades been a taboo issue, with dozens of people jailed for perceived insults of the crown.

A lawyer for Chambers denied the charges and said the accusations stemmed from a blurb for an online academic seminar last year at which he was a speaker. The blurb was posted on a website of a research institute based outside of Thailand, the lawyer said. – Reuters

IMF reaches $20 billion staff-level agreement with Argentina

BUENOS AIRES – The International Monetary Fund said on Tuesday it reached a staff-level agreement with Argentina on a 48-month extended fund facility totaling $20 billion.

The IMF said the agreement, which is subject to approval by its executive board, “builds on the authorities’ impressive early progress in stabilizing the economy, underpinned by a strong fiscal anchor, that is delivering rapid disinflation and a recovery in activity and social indicators.”

Argentina desperately needs the $20 billion deal to unlock investment-blocking capital controls, bolster its depleted foreign currency reserves and come out of a tight inflationary pinch.

“When the board discusses the program, the amount of the first disbursement will be known,” an IMF source said.

IMF’s executive board will consider the proposed arrangement in the coming days, according to the statement.

Libertarian president Javier Milei congratulated his Economy Minister Luis Caputo on X after the deal was announced. – Reuters

Taal Vista Hotel expands its sustainability efforts with new ‘Plate for the Planet’ dish

Taal Vista Hotel: A cultural landmark in the heart of Tagaytay

As part of its ongoing commitment to sustainability, Taal Vista Hotel continues to enhance its eco-friendly initiatives with thoughtful programs designed to reduce its environmental footprint while maintaining exceptional guest experiences. This year, the hotel proudly introduces its latest “Plate for the Planet” dish, Malunggay Pancit Verde — a flavorful and nutrient-rich take on a Filipino classic merienda, made with locally sourced ingredients that support both the environment and the community.

Sustainable Dining: The Heart of Plate for the Planet

Malunggay Pancit Verde: Rice noodles tossed in malunggay pesto topped with seafood and smoked fish

With sustainability at its core, Taal Vista Hotel has embraced garden-to-table principles, sourcing local and seasonal ingredients to minimize food miles and support nearby farmers. The latest addition to its ‘Plate for the Planet’ initiative, the Malunggay Pancit Verde, embodies this vision. Infused with the goodness of malunggay — a powerhouse of nutrients — the dish not only provides a wholesome and delicious meal but also highlights the hotel’s dedication to sustainable food choices.

This eco-friendly menu addition is part of a broader initiative that includes:

  • Locally Sourced Ingredients: Supporting small-scale farmers and reducing carbon emissions from transportation.
  • Waste Reduction: Encouraging mindful dining through portion control and food waste management.
  • Eco-Conscious Operations: Utilizing the ORCA biodigester, which converts food waste into a liquid safely discharged into the sewer system, preventing landfill waste.
Taal Vista Hotel Organic Vegetable Garden

Beyond the Plate: Hotel-Wide Sustainability Initiatives

Taal Vista Hotel’s commitment to sustainability extends beyond the kitchen. The hotel has implemented energy-saving measures, including transitioning to inverter air-conditioning units and LED lighting, reducing energy consumption across all 262 guest rooms. Additionally, it actively conserves water through rainwater harvesting and the use of water-efficient fixtures.

ORCA Rapid Composter: A groundbreaking microbial process to convert food waste into a safe liquid which is then seamlessly discharged into the sewer system

To further minimize plastic waste, the hotel has replaced single-use toiletries with dispenser systems, generating an annual savings of P823,000, and eliminated plastic water bottles in favor of refillable glass pitchers, saving P640,000 yearly.

A Commitment to a Greener Future

Taal Vista Hotel has been actively working towards reducing its carbon footprint, with a strong focus on energy efficiency, water conservation, waste reduction, and responsible sourcing. In 2024, the hotel recorded 5,021 tons of greenhouse gas (GHG) emissions and has set an ambitious yet strategic goal of reducing this by 10% in 2025. This initiative aligns with SM Hotels and Conventions Corp. (SMHCC)’s sustainability objectives, ensuring that every step toward eco-conscious operations is taken with careful consideration of both environmental impact and guest experience.

“Our approach to sustainability is not just about making changes — it’s about making a difference,” said Ramon Makilan, General Manager of Taal Vista Hotel. “By gradually upgrading our equipment and operations, we are able to introduce impactful programs while keeping the warmth and hospitality our guests love.”

Inviting Guests to Be Part of the Change

Veranda Restaurant is National Ecolabelling Programme Green Choice Philippines (NELP-GCP)-certified, with 33% of its à la carte menu locally sourced.

Taal Vista Hotel believes that sustainability is a shared responsibility. Guests are encouraged to join the movement by embracing eco-friendly practices, such as using their own tumblers, participating in the towel and linen reuse program, and practicing mindful dining by taking only what they can consume at the buffet.

As Taal Vista Hotel continues to innovate in its sustainability journey, initiatives like ‘Plate for the Planet’ and its new Malunggay Pancit Verde serve as a reminder that small, intentional choices can create a lasting impact — for both the planet and future generations.

For more information on Taal Vista Hotel’s sustainability efforts and dining offerings, visit https://www.taalvistahotel.com/sustainability-program/ or follow @taalvistahotel on social media.

 

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Jobless rate drops to 2-month low

Women line up to submit applications at a job fair in Robinsons Galleria, Quezon City, March 21, 2025. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Chloe Mari A. Hufana, Reporter

THE JOBLESS RATE slipped to a two-month low in February, as more Filipinos joined the labor force ahead of the summer season and midterm elections, the statistics agency said on Tuesday.

At the same time, the underemployment rate — an indicator of job quality — fell to a nine-month low of 10.1%.

Preliminary data from the Philippine Statistics Authority’s (PSA) Labor Force Survey (LFS) showed the jobless rate stood at 3.8%, easing from 4.3% in January.

Philippine Labor Force Situation

Year on year, this was slightly higher than 3.5% a year ago.

This translated to 1.94 million jobless Filipinos in the second month of the year, lower than the 2.16 million seen in January 2025. Year on year, it was higher than the 1.8 million unemployed Filipinos seen in February 2024.

For the first two months of 2025, the jobless rate averaged 4%, same as a year ago.

“In February we’re already picking up an increase in employment, mainly due to political organizations hiring people, which is around 41,000. Most probably, this will continue until May, and that, in a way, creates seasonality,” PSA Undersecretary and National Statistician Claire Dennis S. Mapa told a news briefing in mixed English and Filipino.

In February, the employment rate rose to 96.2%, equivalent to 49.15 million, from 95.7% in January which translated to 48.49 million employed Filipinos.

Year on year, it was slightly lower than 96.5% in February 2024, which was equivalent to 48.95 million Filipinos with jobs.

Mr. Mapa noted election-related employment is not substantial compared with “core areas” such as the service sector and wholesale and retail trade, particularly food and accommodation.

The campaign period for the May 12 elections began in February.

At the same time, job quality improved in February as the underemployment rate slipped to 10.1% from 12.4% in the same month a year ago and 13.3% in January.

The ranks of underemployed Filipinos — those who want longer work hours or an additional job — fell to 4.96 million from 6.08 million a year ago and 6.47 million in January.

For the two-month period, underemployment averaged 11.7%, falling from 13% a year ago.

“What is substantial here is the visible underemployed, those working less than 40 hours, and those sectors that have seen a significant increase,” Mr. Mapa said.

Underemployment declined in several sectors such as wholesale and retail trade, transportation and storage, other service activities, and manufacturing.

Yearly Job Gains by Industry (February 2025 vs February 2024, in thousands)BIGGER LABOR FORCE
PSA data also showed 51.09 million Filipinos were part of the labor force in February, higher than the 50.65 million in January, and the 50.75 million in the same month last year.

The labor force participation rate (LFPR) — the proportion of the working-age population (15 years old and over) that is part of the total labor force — slipped to 64.5% in February from 64.8% a year ago. Month on month, the LFPR inched up from 63.9% in January.

“Notably, the country’s labor force participation increased by 345,000. The significant decline in participation among youth aged 15-24 reflects a growing trend of young individuals actively pursuing education, highlighting our National Government’s commitment to investing in the future of its youth,” Labor Secretary Bienvenido E. Laguesma told BusinessWorld in a Viber chat.

The youth LFPR slipped to 31.1% in February, down from 33.8% a year earlier and 31.8% in January 2025.

The youth employment rate stood at 89.6% in February, lower than the 91.4% posted a year ago.

In a separate statement, Mr. Laguesma said the February jobs data reflect the government’s “firm commitment as it maintains a positive outlook and encouraging trajectory for our labor market.”

The National Economic and Development Authority (NEDA) said the Philippines’ unemployment rate “remains comparable” to Malaysia (3.1%) and Vietnam (2.2%), and lower than China (5.4%) and India (6.4%).

“We will build on our momentum and intensify our efforts to secure strategic job-generating investments, promote a dynamic and innovative business environment, and diversify growth drivers,” NEDA Secretary Arsenio M. Balisacan said in a statement.

“The continued rollout and implementation of high-impact infrastructure flagship projects, particularly in energy, transport, and digital connectivity, will boost domestic employment and business activity,” he added.

Finance Secretary Ralph G. Recto said the strong labor market can help shield the Philippine economy from a looming trade war and global uncertainties.

“A strong and growing workforce means rising incomes, greater spending power, and sustained job creation. This fuels consumer demand and pushes our economy forward,” Mr. Recto said in a statement.

“We must continue to boost domestic demand, especially in these uncertain times marked by brewing trade wars. A strong and resilient domestic market is our best defense,” he added.

Monthly Job Gains by Industry (February 2025 vs February 2024, in thousands)Federation of Free Workers President Jose Sonny G. Matula said the improvement in the labor market can be attributed to a combination of economic recovery efforts and government programs.

“Post-pandemic recovery momentum has led to increased consumer activity and business reopening, especially in services and hospitality,” he said in a Viber chat.

He also noted the administration’s “Build Better More” infrastructure program continues to generate construction-related jobs, as well as boost mobility and tourism in key provinces.

Government cash-for-work programs and localized employment initiatives may have also contributed to the uptick in employment, Mr. Matula added.

University of the Philippines Diliman School of Labor and Industrial Relations Assistant Professor Benjamin B. Velasco welcomed the improvement in jobs but noted that quality is more important.

“Better employment figures shown in the LFS are welcome. But better quantity of jobs does not imply better quality of jobs,” he said in a Facebook Messenger chat.

By sector, services remained the top employer, accounting for 61.6% of total employed persons in February, followed by agriculture (20.1%) and industry (18.3%).

The accommodation and food service sector had the biggest annual employment gains in February, adding 377,000 jobs. This was followed by fishing and aquaculture (+365,000), public administration and defense (+330,000), construction (+258,000), and other service activities (+232,000).

Mr. Mapa noted there was an increase in employment in the accommodation and food service sector ahead of the summer season.

Month on month, wholesale and retail trade; repair of motor vehicles and motorcycles had the biggest jump in the number of employed persons at 620,000.

Mr. Mapa said the additional 620,000 were mostly employed in nonspecialized stores with food and beverages.

PSA data showed agriculture and forestry lost the most workers year on year, shedding almost 950,000 in February.

This  was followed by administrative and support service activities (-201,000) and transportation and storage (-158,000).

“Whenever there are job losses, whatever the sector, it is a cause for concern,” Mr. Laguesma said.

The labor chief noted that in 2024, the country was hit with several devastating typhoons and weather disturbances that affected agriculture and forestry.

“The country is calamity-prone which mainly contributes to our losses in the agriculture and fishery sectors. Hopefully, we don’t experience the same this year,” Mr. Laguesma said.

Month on month, agriculture and forestry lost the most workers (-520,000), followed by administrative and support service activities (-308,000), and transportation and storage (-176,000).

Mr. Laguesma said the government will continue its initiatives to boost employment, such as the upcoming Labor Day Job Fair.

The department is also bolstering its efforts to empower the youth through the JobStart Program, Special Program for Employment of Students, and Government Internship Program.

“To ensure this thrust, [we are] actively engaged in continuous capacity-building initiatives nationwide to strengthen the implementation of these youth employability programs through our Public Employment Service Offices and program implementers,” he added.

In a note, Chinabank Research said the Philippine labor market is expected to remain stable, but cited risks such as global uncertainties, higher US tariffs and a global slowdown.

“Looking ahead, the service sector will likely remain a key driver of job growth, supported by steady domestic demand. On the other hand, goods-producing sectors, especially those reliant on foreign demand, may face headwinds from higher tariffs from the Philippines’ biggest export market: the US. Nevertheless, opportunities remain through diversification and policy support,” Chinabank Research said.

Meanwhile, Mr. Balisacan said the government is set to launch the Trabaho Para sa Bayan Act Plan 2025-2034.

This includes programs to improve the competitiveness of the Filipino workforce, encourage innovation and promote technology adoption among enterprises, and enhance labor market governance.

For his part, Mr. Matula proposed a shift toward agro-industrialization as a long-term solution, especially in rural areas.

He noted the importance of investing in value-added industries within agriculture and fisheries — such as food processing, logistics, and export development — to generate more stable, higher-paying employment opportunities.

He also highlighted the need for stronger government support for micro, small, and medium enterprises.

PHL dollar reserves slip to $106B at end-March

US dollar banknotes are seen in this photo illustration taken Feb. 12, 2018. — REUTERS

By Luisa Maria Jacinta C. Jocson, Senior Reporter

THE PHILIPPINES’ dollar reserves slipped as of end-March as the National Government  repaid more of its foreign debt, preliminary data from the central bank showed.

Bangko Sentral ng Pilipinas (BSP) data showed gross international reserves (GIR) dipped by 1.1% to $106.2 billion as of end-March from $107.4 billion as of end-February.

Year on year, dollar reserves went up by 2.1% from $104.1 billion.

Ample foreign exchange buffers protect the country from market volatility and ensure that it is capable of paying its debts in the event of an economic downturn.

“The month-on-month decrease in the GIR level reflected mainly the drawdowns by the National Government on its foreign currency deposits with the BSP to meet its external debt obligations and the BSP’s net foreign exchange operations.”

Latest data from the central bank showed the Philippines’ outstanding external debt rose by nearly 10% to $137.63 billion as of end-December 2024 from $125.39 billion a year prior.

This brought the external debt service burden to $17.16 billion in 2024, surging by 15.6% from $14.85 billion in 2023.

Despite the slightly lower GIR in March, the BSP said the reserves still act as a “robust external liquidity buffer.”

The level of dollar reserves as of end-March was enough to cover about 3.7 times the country’s short-term external debt based on residual maturity.

It was also equivalent to 7.3 months’ worth of imports of goods and payments of services and primary income.

BSP data showed foreign investments stood at $88.6 billion as of end-March, down by 1.7% from $90.1 billion in the previous month. Year on year, it inched up by 0.7% from $87.9 billion.

Meanwhile, net international reserves decreased by 1.1% to $106.2 billion as of end-March from $107.4 billion as of end-February. 

Net international reserves refer to the difference between the BSP’s reserve assets (GIR) and reserve liabilities, including short-term foreign debt, and credit and loans from the International Monetary Fund (IMF).

The BSP’s reserve assets also include foreign investments, foreign exchange, reserve position in the IMF and special drawing rights (SDR).

Reserves with the IMF declined by 2.6% month on month to $653 million from $670.2 million. It also fell by 12% from $741.3 million a year ago.

SDRs remained steady at $3.75 billion at end-March, the same as the month prior. SDRs are the amount which the Philippines can tap from the IMF’s reserve currency basket.

On the other hand, the value of the central bank’s gold holdings rose by 5.9% to $12.76 billion from $12 billion at end-February. Year on year, it climbed by 21.2% from $10.5 billion.

Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said the dip in GIR as of end-March is due to a “combination of valuation adjustments and forex operations.”

“The BSP may have intervened in the FX (foreign exchange) market to smooth out volatility or temper excessive peso depreciation in March. Any dollar selling to stabilize the peso would naturally reduce reserves,” he said.

The peso closed at P57.21 against the greenback at end-March, strengthening by 78.5 centavos from the P57.995 at end-February.

“Hence, we have a pretty stable forex rate hovering around P56-P58 in the past few days,” Mr. Rivera added.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said foreign investments declined as markets were anticipating US trade policies.

Markets were in jitters in the weeks leading up to US President Donald J. Trump’s tariff announcement on April 2.

“The continued Trump factor led to some market volatility, especially on the US stock markets and other risky asset classes, though offset by some shift to safe havens such as US Treasuries that led to lower bond yields recently,” Mr. Ricafort said.

Mr. Ricafort also noted that the increase in gold holdings could be due to the flight to safe-haven reserves amid trade volatility.

“Despite the decrease, the GIR level remains very comfortable… and still provides a strong buffer against external shocks,” Mr. Rivera said.

“The dip is not alarming but rather part of routine fluctuations tied to market and debt management operations,” he added.

The BSP is expecting a GIR level of $105 billion for this year.

Metro Manila condo launches fell to lowest level in 5 years — LPC

Condominium buildings are seen in the Ortigas business district, April 4, 2025. — PHILIPPINE STAR/MIGUEL DE GUZMAN

NEW CONDOMINIUM launches in Metro Manila slumped to a five-year low in the first quarter, as property developers focus on clearing their existing inventory, according to property consultancy firm Leechiu Property Consultants (LPC).

LPC’s latest Philippine Property Market Report showed new condominium launches in Metro Manila plunged by 77% to 1,347 units in the January-to-March period from 5,928 units in the fourth quarter of 2024.

This was also the lowest number of units launched since the 9,392 units in the first quarter of 2020 when the coronavirus disease 2019 (COVID-19) pandemic began.

In a statement, LPC said developers are “focusing on marketing existing inventory, particularly within the midrange segment, before rolling out new projects.”

Leechiu Director for Research and Consultancy Roy Amado L. Golez, Jr. said the drop in new residential condominium projects reflects developers’ lack of confidence in the market.

“The significant number of supply in the market dictates that developers will slow down their launches. But then at the end of the year, we’ll likely see the same blip upwards in terms of total supply,” he said at a media briefing on Tuesday.

LPC data showed a 14% quarter-on-quarter improvement in sales take-up with 6,500 units sold in the first quarter, amid rate cuts by the central bank. However, this was a far cry from the 13,246 units sold in the first quarter of 2020.

The Bangko Sentral ng Pilipinas (BSP) cut rates by 75 basis points in 2024, bringing the key rate to 5.75%. The BSP has signaled it will continue easing this year.

“We’ve seen a good start for the year for the residential market. But we need to move with caution for now due to very recent developments in the world capital markets. For developers, they will need to be more aggressive with their marketing: their promos and payment terms,” Mr. Golez said.

Mr. Golez said buyers should take advantage of “a short window of opportunity to acquire property at favorable terms while supply is not yet at comfortable levels.”

Metro Manila still has an oversupply of condominiums, mainly in the mid-market to upscale segments and in areas outside central business districts that were affected by the government’s ban on Philippine offshore gaming operators (POGO).

As of end-March, LPC data showed Metro Manila had about 81,400 available condo units, which may take 38 months or about three years to be fully sold.

“Most developers, or practically all, are reluctant to decrease prices. But in effect, what they’re trying to do is offer decreased prices by offering discounts as well as extended payment terms,” Mr. Golez said.

Mr. Golez said he expects developers to limit their project launches for the next six months.

“In the next six months, I think these (launches) will remain low, but as take-up improves, I think they will recover, because now, there are only limited launches,” he told BusinessWorld after the briefing.

Meanwhile, the office market saw a 7% year-on-year increase in demand of 355,000 square meters (sq.m.) despite the absence of POGOs and limited government take-up, LPC said.

“The main difference between this quarter and the first quarter of 2024 is the 56% increase in BPO (business process outsourcing) demand coming from specifically one segment, which are the global in-house centers,” Mikko Baranda, LPC director for commercial leasing, told the briefing.

Global in-house centers are involved in healthcare, banking, financial services, and insurance sectors.

“A lot of these companies, and probably also predicated with what’s happening all over the world, are looking at the Philippines again to offshore and outsource work,” Mr. Baranda said, citing foreign companies like JPMorgan keen on growing their footprint in the country.

In the first quarter, lease transactions involving IT-BPOs reached 185,000 sq.m. of office space, while those for traditional offices reached 94,000 sq.m.

The nationwide office vacancy rate stood at 17% in the first quarter. In Metro Manila, the office vacancy rate stood at 16% — with the highest in Taguig at 24% and the lowest in Bonifacio Global City (10%).

For 2025, office net take-up is expected to jump by an annual 16% to 490,000 sq.m.

“The office market in the Philippines continues to show grit in the face of global and local challenges. The IT-BPM sector remains to be a reliable key driver of growth, while traditional office tenants are also increasingly active. With a promising outlook for the rest of the year, we expect resiliency amidst potential headwinds,” Mr. Baranda said.

LPC said a total of 2 million sq.m. is forecast to be added to the Philippine office supply in the next four years.

Meanwhile, the country’s retail market has already recovered from the pandemic.

“The general population has largely come back to the malls, and back to their consumption behavior. Developers are largely confident of the market with 105 malls upcoming nationwide [in the next six years],” Mr. Golez said. 

By developer, SM Prime Holdings, Inc. accounted for 29% of upcoming malls, followed by Robinsons Land Corp. at 28%, and DoubleDragon Corp. at 15%. Other developers expected to launch new malls in the six-year period include Ayala Land, Inc. (10%), Megaworld Corp. (7%), and Rockwell Land Corp. (2%). — Beatriz Marie D. Cruz

Topline shares dip on Philippine stock market debut

Top Line Business Development Corp made its stock market debut on Tuesday. — COURTESY OF TOP LINE BUSINESS DEVELOPMENT CORP.

SHARES of Cebu-based fuel retailer Top Line Business Development Corp. (Topline) slipped on its market debut, even as the local bourse saw a rebound on Tuesday.

Topline is the first initial public offering (IPO) on the Philippine Stock Exchange (PSE) this year.

Shares in Topline opened at their IPO price of 31 centavos. It fell by 9.68% to an intraday low of 28 centavos.

Topline closed 3.23% lower at 30 centavos per share at the end of Tuesday’s trading.

“Topline opened to a weak start on its first trading day, weighed down by bearish global market sentiment following Trump’s imposition of reciprocal tariffs,” DragonFi Securities, Inc. Equity Research Analyst Jarrod Leighton M. Tin said in a Viber message.

“Given the subdued debut, investor appetite for upcoming IPOs this year may remain muted until overall market sentiment improves. The fundamentals are good. It’s just that this is not the best environment for growth stocks,” he added.

The benchmark PSE index (PSEi) on Tuesday closed 3.15% higher at 6,006.34. The PSEi bounced back from the 4.29% decline on Monday, amid a broader sell-off in Asian markets due to the US tariffs.

US President Donald J. Trump imposed a minimum of 10% tariff for all US imports, with targeted rates of up to 50% on some countries, raising worries of a global trade war and a recession. He slapped a 17% reciprocal tariff on Philippine goods, but this was among the lowest in Southeast Asia.

“Global markets tumbled (on Monday) as a result of Trump’s Liberation Day tariffs, or as some call it, Liquidation Day tariffs. Less than stellar market conditions and every imaginable headwind are among the realities that publicly listed firms have to contend with,” PSE President and Chief Executive Officer Ramon S. Monzon said during the Topline listing ceremony.

“But I believe Topline can navigate these headwinds in the financial markets,” he added.

Eugene Erik C. Lapasaran Lim, Topline chairman, chief executive officer, and president, said the company’s IPO has seen strong market demand.

“While we acknowledge broader market challenges affecting investor sentiment, both locally and globally, we are glad for our IPO’s oversubscription, receiving overwhelming support from our institutional and retail investors,” Mr. Lim said.

Topline raised up to P732.6 million from its IPO that consisted of 2.15 billion primary shares with an overallotment option of up to 214.84 million secondary shares. The company’s shares were listed on the PSE’s main board with a 22% public float.

Mr. Monzon said Topline is the sixth company listed on the PSE that is either Cebu-based or has main operations in Cebu.

“Since listing dates are milestones, it is understandable that there are investors who put a lot of importance on a stock’s performance stock market debut. But as I’ve said many, many times, an IPO is not the be-all and end-all of a company’s existence. It is just the beginning,” Mr. Monzon said.

“Being listed gives a company a seal of good housekeeping in terms of good governance, regulatory compliance, and implicit transparency of management.”

In a separate interview on Money Talks with Cathy Yang program on One News Channel, Mr. Lim said that Topline is not affected by the uncertainties caused by the US tariffs.

“The Philippines is taxed not really very high. That’s probably one of the bright spots… Then with the existing oil pricing, it’s quite soft right now… It depends on what industry you are into. But so far for us, since we have a very good pricing strategy, it’s either the price of oil will go up or go down. We’re still fine with that,” he said.

“It’s not really that much in terms of pricing especially for the fuel products, since at the end of the day, we’ve been importing ever since. The Philippines is a net importing country. The fundamentals are still there, so we’re still quite excited for this listing,” he added.

The PSE is expecting six IPOs this year. Other companies seen to list this year include mobile wallet GCash and water concessionaire Maynilad Water Services, Inc. — Revin Mikhael D. Ochave

ASEAN nations plan tariff talks with United States

Anwar Ibrahim, Malaysia’s prime minister, speaks during ASEAN Malaysia 2025 events in Kuala Lumpur, Malaysia on March 8, 2025. — BLOOMBERG

MALAYSIAN Prime Minister Anwar Ibrahim said his country and the Association of Southeast Asian Nations (ASEAN) partners will dispatch officials to Washington, D.C. for talks following President Donald J. Trump’s rollout of global tariffs.

“There may be limited room to revisit the underlying intent, but there is still scope for adjusting the policy’s implementation,” Anwar said in his opening speech at the ASEAN Investment Conference 2025 in Kuala Lumpur. “The global trading system is under intense strain, more so than at any point in recent memory.”

Southeast Asian nations were hard hit by the so-called reciprocal tariffs rolled out by Mr. Trump last week, though they vary depending on each country’s trade relationship with the US. Malaysia faces a 24% levy; US tariff on Indonesia was set at 32%; and Vietnam exports will be charged at 46%. The US tariff on Singapore was set at 10%, while the levy for the Philippines will be 17%.

In response, countries across the region are examining both policy responses to support their economies while seeking relief from the tariffs in talks with the US. Vietnam Deputy Prime Minister Ho Duc Phoc on Monday canceled afternoon meetings in New York to hurry to Washington, people with knowledge of the matter said earlier. Mr. Trump’s tariffs on Vietnam and other countries take effect at 12:01 a.m. in Washington on Wednesday.

Indonesia has announced plans to send a heavyweight delegation to Washington next week, including Finance Minister Sri Mulyani Indrawati and the economy and foreign ministers.

Thailand’s Deputy Prime Minister Pichai Chunhavajira will also visit the US, Prime Minister Paetongtarn Shinawatra said in a statement on Sunday, without specifying any timing. “What we will communicate to the US government is that Thailand is not just an exporter, but we are a reliable ally and economic partner,” Paetongtarn said.

Singapore will set up a taskforce to address economic uncertainties, Prime Minister Lawrence Wong told lawmakers on Tuesday, warning that the official growth forecast of 1%-3% for 2025 is likely to be revised lower.

Mr. Wong said a Special ASEAN Economic Ministers’ Meeting will be convened this week to discuss how the bloc can work together to boost trade and as a “strong signal of ASEAN’s commitment to regional economic integration.”

The Philippines on Monday said it may cut tariffs on US products, while also consider joining a potential collective response by ASEAN.

Malaysia is the current chair of the ASEAN group of 10 Southeast Asian countries. Anwar said over the weekend that Malaysia will lead efforts to coordinate a regional response by Southeast Asia toward US tariffs.

On Tuesday, he deviated slightly from a distributed written copy of the speech by specifically mentioning ASEAN’s role in US talks.

“As part of our soft diplomacy of quiet engagement — and I built this consensus among ASEAN leaders — we will be dispatching together with our colleagues in ASEAN, our officials to Washington to begin the process of dialogue,” Anwar said.

Noting that the bloc accounts for total trade in goods of $3.5 trillion, Anwar also called for more internal economic cooperation, including more regulatory alignment, cross-border logistical work and digital connectivity.

“With the barrage of tariffs sweeping across the world in fast and furious fashion, we are witnessing the fraying of the global order,” Anwar said. “Therefore, ASEAN must rely more on itself.”

Anwar, who was Malaysia’s finance minister during the 1997-1998 Asian financial crisis until he fell from grace with then-Prime Minister Mahathir Mohamad, said the “Trump tariffs” are not the first challenge to multilateralism and won’t be the last.

“If ASEAN can hold its nerve — staying open, pragmatic and cohesive — it may yet be among the last believers in a world that works better when it works together,” he said. — Bloomberg

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