PHL banks to see ‘low’ credit risk from US tariffs

April 9, 2025 | 12:03 am

THE PHILIPPINE banking system is unlikely to face significant credit risk from the United States’ tariff policies due to its lower tariff rate compared with its neighbors in the Asia-Pacific (APAC) region, Moody’s Ratings said.

“In Asia-Pacific, the impact on banks is credit-negative albeit to different levels, leading to heightened uncertainty for investors and consumers… Within APAC, the lowest additional US tariffs are now in Australia, New Zealand, Hong Kong, Singapore, Mongolia and the Philippines, with these economies’ banks experiencing the least damage from direct tariffs,” it said in its latest credit outlook, saying in a chart that the impact from the levies will be “low.”

Meanwhile, it expects banks in Vietnam, Thailand and Bangladesh to be the worst hit in the region by the US tariffs, with the impact expected to be “high,” while those in China, Indonesia, Taiwan, Japan, Korea, India and Malaysia are expected to see a “moderate” impact.

“The higher tariffs are more negative, on a relative basis, for banks in Vietnam, Thailand and Bangladesh because of their economies’ higher reliance on exports to the US compared with other economies in the region,” Moody’s Ratings said. “In these three countries, a moderation in exports to the US will hurt economic growth, straining loan growth for banks and hurting loan quality.”

“Elsewhere in APAC, despite significant increases in US import tariffs, the related impact on banks in China, Japan, Korea, India, Indonesia, Malaysia and Taiwan, China, will be more manageable because of either economic diversification, low exports to the US, or both.”

US President Donald J. Trump last week announced a slew of tariffs on the country’s trading partners that are set to take effect on April 9.

In the region, the Philippines has the second-lowest tariff rate at 17%, just after Singapore, which received the 10% baseline tariff.

Countries that were slapped “moderate” tariffs (24% to 27%) were Japan, South Korea and India.

Meanwhile, Cambodia, Vietnam, Thailand, Indonesia and China saw the rates (32% to 49%).

Moody’s Ratings said the reciprocal tariffs are likely to affect economic growth and corporate creditworthiness in Asia-Pacific, which in turn could hurt banks’ loan expansion asset quality.

“In terms of large corporate exposures, we do not expect significant deterioration in loan quality for APAC banks. Listed APAC nonfinancial firms, on average, typically generate around 10% of revenue from the US market, and the drop in sales because of US tariffs should not significantly reduce their debt-servicing capacity,” it added.

“Still, some industries in APAC are more heavily dependent on US sales, which could lead to mildly higher asset quality risk for creditors, particularly in automobiles and parts, steel, chemicals, textiles and shipyards.”

Latest data from the Bangko Sentral ng Pilipinas (BSP) showed bank lending growth slowed to 12.2% year on year in February from the 12.8% expansion in January, which was the fastest in two years.

Separate data showed Philippine banks’ asset quality worsened as the industry’s gross nonperforming loan (NPL) ratio rose to 3.38% in January from 3.27% in December. This was the highest in two months or since the 3.54% in November.

Potential actions by monetary authorities to support economic growth amid the risk of a global recession could also affect APAC banks’ margins, Moody’s Ratings added.

“To counter the strain from higher US tariffs, it is likely that some central banks in APAC will begin reducing interest rates sooner than when the markets expect, or moderate the pace of their rate hikes, as in the case of Japan. These measures, if implemented, will lead to lower bank margins,” it said.

“We also expect higher government support and other measures from the central banks, including interest rate reductions and loan restructurings for borrowers in the most affected industries.”

The BSP is widely expected to resume its easing cycle on Thursday amid low inflation, with the potential economic impact of the US’ tariff policies bolstering the possibility of further rate cuts.

A BusinessWorld poll of 17 analysts conducted last week all expect the Monetary Board to reduce the target reverse repurchase rate by 25 basis points (bps) to 5.5% from the current 5.75%.

The central bank kept interest rates steady in February as it waited to see how global trade uncertainties would unfold. It slashed borrowing costs by a total of 75 bps in 2024. — Luisa Maria Jacinta C. Jocson

Philippine Labor Force Situation

April 9, 2025 | 12:03 am

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. Read the full story.

BPI taps ACEN RES for renewable energy supply

April 9, 2025 | 12:03 am

THE BANK of the Philippine Islands (BPI) has tapped ACEN RES, the retail electricity supply arm of the Ayala group, for its power supply under the government’s expanded retail aggregation program (RAP).

BPI aggregated the power demand across its 70 branches, making it the first customer in the banking sector under the government program, the Energy Regulatory Commission (ERC) said in a statement on Monday.

“BPI’s participation in RAP sends a clear message to other banks and the entire financial sector: the retail electricity market is viable and offers real opportunities to enhance the bankability of energy projects,” ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said.

“My hope is that banks across the country will recognize the enormous potential in retail competition — that they are not just financiers of power projects, but also active contributors to the country’s energy security,” she added.

The enhanced RAP allows facilities owned by the same consumer within the same franchise area of a distribution utility to aggregate their demand to meet the 500-kilowatt threshold and select their power supplier.

BPI also moved its corporate office in Manila to renewable energy through the Green Energy Option Program (GEOP), a voluntary mechanism that allows electricity end-users to choose renewable energy as their power source.

BPI Chief Finance Officer and Chief Sustainability Officer Eric M. Luchangco emphasized that switching 70 branches to RAP is “just the beginning of the bank’s broader efforts to promote energy sustainability within its operations.” — Sheldeen Joy Talavera

The end of BPO as we know it — and the rise of KPO in the Philippines

April 9, 2025 | 12:02 am

searching-mistakes-code — PRESSFOTO-FREEPIK

The Philippine’s business process outsourcing (BPO) industry, once the undisputed engine of economic growth and job creation, is facing a crossroads. With over 1.7 million Filipinos employed in the industry and contributing 8-10% of the nation’s GDP, the BPO sector has long been a source of national pride and economic resilience. But this foundation is now shaking, as artificial intelligence (AI) rapidly automates the very roles that gave rise to the country’s outsourcing boom.

AI tools like ChatGPT, customer service bots, and robotic process automation are now being integrated at scale into customer-facing operations, data processing tasks, and even specialized service areas once thought safe from automation. From New York to Sydney, global companies are embracing AI to cut costs and enhance efficiency. And for countries like the Philippines — where tens of thousands of young professionals earn their livelihood handling routine customer service tasks for foreign firms — this transformation is as urgent as it is disruptive.

A recent Bloomberg report shed light on this unfolding reality. In the video, BPO professionals in Metro Manila and Cebu spoke of how AI is already replacing voice-based roles. One BPO company reportedly shut down an entire business line, laying off over 2,000 employees, after an AI solution took over a major account. The writing is on the wall: AI is not coming for BPO jobs — it is already here.

Yet this isn’t a death sentence. This is a pivot point.

The world may be witnessing the end of the BPO industry as we know it, but it also signals the beginning of a new chapter: the rise of the Knowledge Process Outsourcing (KPO) sector.

Unlike BPO, which thrives on volume, repetition, and scale, KPO is built on expertise, analytics, and insight. It values human judgment, creativity, and critical thinking — qualities that AI, for all its sophistication, still lacks.

For the Philippines, the solution lies in one word: upskilling.

If we are to survive this wave of disruption and ride it toward opportunity, we must embark on an unprecedented national effort to train, re-train, and elevate our BPO professionals into globally competitive knowledge workers. This means mastering not only customer interaction but also data analysis, prompt engineering, cybersecurity monitoring, project management, business intelligence, and AI operations.

It will require public and private institutions to come together and act decisively. The Department of Information and Communications Technology (DICT), the Commission on Higher Education (CHED), and the Technical Education and Skills Development Authority (TESDA) must accelerate the rollout of national digital literacy programs and AI-focused bootcamps. These should not be general webinars or workshops but structured, industry-aligned certification programs on data analytics, cloud computing, information security, and machine learning basics.

In parallel, private BPO firms must recognize that investing in their people is not just a moral imperative but a strategic one. They must offer tuition support, continuous learning stipends, and on-site training platforms where their employees can gain new digital capabilities. Every BPO company should build its own internal “future workforce academy,” with tracks for analytics, tech support, creative work, and AI-human hybrid services.

Industry organizations are already stepping up. The Information Technology and Business Process Association of the Philippines (IBPAP), the main industry body for outsourcing firms, has acknowledged the dual nature of AI. While it admits that some jobs are being lost due to automation, it also reports that many BPO companies are expanding and hiring for AI-supported services. IBPAP is now working with global experts to create roadmaps that align AI integration with job preservation and transformation.

Meanwhile, the Healthcare Information Management Association of the Philippines (HIMAP) is focused on protecting and expanding the healthcare outsourcing subsector. HIMAP has launched initiatives to upskill workers in medical coding, telehealth support, healthcare analytics, and even AI-assisted diagnostics. These are areas where AI is used not to replace people but to empower them — assisting nurses and support agents with faster, more accurate decision-making.

To ensure long-term sustainability, the Philippines must also develop a five-year national roadmap for BPO-to-KPO transition. Year one should focus on large-scale training and certification programs, including aggressive marketing of scholarships and free courses for BPO professionals. Local governments must be enlisted to help map displaced workers and provide access to digital education hubs.

In years two and three, the country should support startups and new ventures in high-value niches: fintech services, health tech outsourcing, creative process outsourcing, and cybersecurity as a service. Government incentives should reward companies that hire upskilled workers or build AI-human hybrid teams instead of simply replacing agents with bots.

By years four and five, we should aim to establish the Philippines not just as the call center capital of the world — but as a global hub for knowledge-based services. This includes AI development, content moderation, financial analysis, software QA testing, and risk management support. The shift won’t be easy — but it is necessary.

This transformation is also deeply personal. The average BPO worker in the Philippines earns between P20,000 to P40,000 per month — often supporting entire families, paying off mortgages, sending children to school. A sudden job loss due to AI could spell disaster for hundreds of thousands of people. This is why the government must strengthen the social safety net: emergency unemployment insurance, subsidized healthcare, and access to mental health resources must be part of the equation.

Incorporating AI into the workplace doesn’t have to come at the cost of human livelihoods. We must promote the mindset of AI as augmentation, not replacement. The most effective customer service strategies today are no longer purely human or purely automated — they are hybrid. Filipino workers still possess a crucial edge in empathy, problem-solving, and cultural nuance. When paired with AI, they can become super-agents, solving problems faster and providing an even better experience.

Education institutions also have a key role to play. Colleges and universities must integrate AI, data science, and cybersecurity modules across all disciplines — from business administration to nursing to communications. Micro-credentialing, modular learning, and flexible online certifications should become standard for working professionals.

Ultimately, the survival of the BPO industry — and its transformation into a KPO powerhouse — depends on a whole-of-nation approach. Government, academia, private companies, industry associations like IBPAP and HIMAP, and the workers themselves must move in sync. The clock is ticking.

The rise of AI marks the end of the BPO industry as we know it. But it is also the beginning of a smarter, more resilient, and more competitive future. If we act with urgency, collaboration, and vision, the Philippines can once again emerge as a global leader — not in low-cost labor, but in high-value intelligence.

We must embrace this change not with fear, but with resolve. The world is changing — and the Filipino workforce is more than capable of changing with it.

Dr. Donald Lim is the founding president of the Global AI Council Philippines and the Blockchain Council of the Philippines, and the founding chair of the Cybersecurity Council, whose mission is to advocate the right use of emerging technologies to propel business organizations forward. He is currently the president and COO of DITO CME Holdings Corp.

The Handmaid’s Tale star Elisabeth Moss not ready for final season farewell

April 9, 2025 | 12:02 am

LOS ANGELES — As a producer, director, and the lead actor for the Emmy-winning Hulu series The Handmaid’s Tale, Elisabeth Moss isn’t ready to say goodbye to the dystopian drama series after a six-season long run.

“There’s been a very few periods of my life in the last nine years that I have not been working on this show,” Ms. Moss said. “It hasn’t hit me at all yet that I’m not playing her (June Osborne) anymore,” she added.

The series, created by Bruce Miller and based on the 1985 novel of the same name by Canadian author Margaret Atwood, debuted its sixth and final season on Hulu on Tuesday.

The show follows the totalitarian religious extremist government of Gilead that is driven by power-hungry men who brutally subjugate women in the aftermath of collapsing fertility rates and war.

Some women, called handmaids, are treated as breeders who must bear children for superior infertile families.

Ms. Moss plays a woman named June Osborne, who is forced to become a handmaid along with her friend Moira Strand, played by Samira Wiley.

Other cast members include Ann Dowd as Aunt Lydia Clements, a woman in charge of overseeing the handmaids and Bradley Whitford as Commander Joseph Lawrence, a repentant leader in Gilead.

Mr. Whitford and Ms. Moss find it striking how much the show has become a symbol for the real-life global women’s rights movement.

“There’s a message about resistance, that is basically what I would say, the theme of this final season is,” Mr. Whitford said.

“I think we all feel very lucky to be part of something that’s getting that out,” the actor, who also starred in The West Wing, added.

Echoing this, Ms. Moss reflected on how the final season makes an effort to create a bigger impact and highlights the importance of revolution.

“I feel like we feel so proud and so honored that people have taken this show as a symbol of resistance and using that (handmaid) costume as a symbol of resistance and being able to use this show to encourage themselves to fight for what they believe in,” Ms. Moss said.

For her, it was vital to push further than ever before for the show’s finale.

“It was the biggest season we’ve ever done, more locations, more cast, more story, more sets, just everything we did was bigger,” the actor said. — Reuters

T-bonds fetch lower rates on BSP cut bets

April 9, 2025 | 12:02 am

THE GOVERNMENT made a full award of the reissued Treasury bonds it offered on Tuesday as rates were in line with secondary market levels amid expectations that the Bangko Sentral ng Pilipinas (BSP) will resume its monetary easing cycle this week.

The Bureau of the Treasury (BTr) raised P30 billion as planned via the reissued 20-year bonds it auctioned off on Tuesday as total bids reached P53.356 billion, or almost twice the amount on offer.

The full award brought the total outstanding volume for the bond series to P413.3 billion, the Treasury said in a statement.

The bonds, which have a remaining life of six years and three months, were awarded at an average rate of 5.986%. Accepted bid yields ranged from 5.925% to 6.015%.

The average rate of the reissued papers was down by 14.2 basis points (bps) from the 6.128% fetched for the series’ last award on Aug. 13, 2024. This was also 187.2 bps lower than the 8% coupon for the issue.

However, this was 4.33 bps higher than the 5.9427% quoted for the seven-year bond, or the benchmark tenor closest to the remaining life of the issuance, and 7.78 bps above the 5.9082% seen for the same bond series at the secondary market before Tuesday’s auction, based on PHP Bloomberg Valuation Service Reference Rates data provided by the BTr.

A trader said the government fully awarded its T-bond offer as rates were within the expected range and were close to the comparable secondary market yields.

“It looks like investors are comfortable to buy at the current levels in view of a possible rate cut this Thursday,” the trader said in a text message.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort likewise said in a Viber message that T-bond rates were in line with secondary market levels as better-than-expected March headline inflation reinforced bets of a BSP rate cut this week.

Philippine inflation eased to 1.8% in March from 2.1% in February and 3.7% in the same month a year ago, the government reported last week.

This was the lowest consumer price index (CPI) reading in 58 months or since the 1.6% logged in May 2020 at the height of the coronavirus pandemic.

This was also within the BSP’s 1.7%-2.5% forecast for the month and slightly below the 2% median estimate in a BusinessWorld poll.

For the first quarter, the CPI averaged 2.2%, well within the central bank’s 2-4% annual target.

Analysts have said that the slower-than-expected March inflation print and prospects of an economic slowdown due to the US government’s trade policies, give the BSP room to cut rates further.

A BusinessWorld poll conducted last week showed that all 17 analysts surveyed expect the Monetary Board to reduce its target reverse repurchase rate by 25 bps to 5.5% at its meeting on Thursday.

This would mark its first easing move since December as the BSP unexpectedly kept benchmark interest rates steady in February to assess the potential impact of the Trump administration’s evolving policies on the Philippine economy.

The Monetary Board has brought down borrowing costs by a cumulative 75 bps since it began its rate-cut cycle in August last year.

BSP Governor Eli M. Remolona, Jr. last month said that the central bank could slash benchmark rates by up to 75 bps this year.

The BTr is looking to raise P245 billion from the domestic market this month or P125 billion via Treasury bills and P120 billion through T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.54 trillion or 5.3% of gross domestic product this year. — Aaron Michael C. Sy

Yearly Job Gains by Industry (February 2025 vs February 2024, in thousands)

April 9, 2025 | 12:02 am

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. Read the full story.

First Gen expects LNG delivery this month

April 9, 2025 | 12:02 am

LOPEZ-LED First Gen Corp. expects a new liquefied natural gas (LNG) cargo delivery this month to meet the supply requirements of its gas-fired power plants in Batangas.

The company said it recently completed a tender for its seventh LNG cargo, which is due to arrive in April, according to its annual report.

“The IOT (interim offshore LNG terminal) project will enable the company to utilize both Malampaya gas and LNG for the 2,000 MW (megawatts) of power plants located at the FGEN Clean Energy Complex,” the company said.

Last year, First Gen completed the tender and receipt of six LNG cargoes following the completion of the terminal in 2023.

First Gen operates four existing gas-fired power plants with a combined capacity of 2,017 MW, located at the First Gen Clean Energy Complex in Batangas. These plants have been supplied for many years with gas from the Malampaya gas field.

In 2023, its subsidiary, FGEN LNG Corp., completed the interim offshore LNG terminal and entered into a five-year time charter party for its floating storage and regasification vessel, BW Batangas.

Earlier this year, FGEN LNG received a permit from the Department of Energy to operate and maintain its interim offshore LNG terminal for 25 years.

Currently, First Gen has a total of 3,668 MW of combined capacity from its portfolio of plants that run on geothermal, wind, hydro, solar energy, and natural gas.

The company aims to expand its portfolio to 13,000 MW by 2030.

For 2024, First Gen reported an attributable net income of $252.9 million, down 19% due to lower contributions from its green energy business.

On the local bourse, shares in the company declined by 1.23% to close at P16 each on Tuesday. — Sheldeen Joy Talavera

Yeskah’s Eco-friendly Shop makes money from paper

April 9, 2025 | 12:02 am

YESKAH’S Eco-friendly Shop, a Quezon City-based business, is promoting the country’s circular economy by upcycling discarded paper into profitable products.

The business started by selling paper bags in 2020 and has since expanded to various upcycled products.

The paper scraps left from making paper bags are transformed into various products including woven boxes, fans, paper seed bombs — recycled paper pulp mixed with seeds — and more.

“A lot of scraps came to me, so what we did was innovate — we transformed them into new products,” owner Jessa R. Velo Atnero-Sabaldan told BusinessWorld in Filipino during an ecofriendly bazaar at Farmers Plaza, Quezon City last month.

They have also expanded into bags and purses made from discarded jeans and clothing, which were a crowd favorite at the bazaar.

Ms. Sabaldan said she did not originally mean to promote sustainability, but she eventually realized that she was doing so by finding ways to make money from waste.

The Department of Trade and Industry in a 2022 report said the local paper industry has boosted recycling efforts in the past 10 years, with 85% to 90% of its fiber now obtained from locally recovered paper.

The initiative diverts 1.4 million tons of waste yearly and contributes more than P7 billion to the informal economy, it said.

Ms. Sabaldan said apart from the business’s sustainability efforts, the heart of her business also lies in the craftsmanship of at least 10 single mothers and senior citizens in their neighborhood.

She plans to hire more local women as her business grows. She also dreams of having her own space once she has saved enough. — Edg Adrian A. Eva

Unsolicited proposals: Driving innovation and growth in public-private partnerships

April 9, 2025 | 12:01 am

In the past decades, Public-Private Partnerships (PPPs) have been considered a catalyst for driving and pushing the ends of traditional constraints long plaguing infrastructure development, especially in developing countries.¹ In the Philippines, the government has acknowledged that PPPs are a crucial cornerstone for continuing the government’s infrastructure and development strategy. As enshrined in the national policy, the State recognizes the indispensable role of the private sector in bridging infrastructure gaps and accelerating inclusive growth. PPPs enable governments to tap into private sector resources, innovation, and technical expertise to finance, design, construct, operate, and maintain key infrastructure projects and public services, particularly where public funds are limited or unavailable.

In developing economies like the Philippines, insufficient and poorly maintained infrastructure remains a major constraint on economic growth and social equity. The development of infrastructure in the country is hampered by painfully long inefficient bureaucratic systems, lack of coordination, financing, and a relatively low involvement in private sector infrastructure provision.² To combat these socio-economic difficulties, PPPs serve as a strategic mechanism to address these systemic challenges by enabling efficient, transparent and cost-effective project delivery. They now extend beyond traditional infrastructure to include essential social services like schools and hospitals, contributing directly to public welfare and national development goals.

Under Republic Act No. 11966, enacted on Dec. 5, 2023, otherwise known as the “Public-Private Partnership Code of the Philippines,” one of the most dynamic and potentially transformative mechanisms within the PPP framework is the Unsolicited Proposal (USP). USPs allow private proponents to propose PPP projects outside the formal government pipeline or the traditional request for a proposal from the government but align with national or local development objectives. This mechanism is especially critical and quite revolutionary for a rapidly evolving economic and technological landscape, where the private sector may be better positioned to identify opportunities or introduce innovative solutions directly to the government.

By allowing USPs, the government acknowledges that innovation and initiative often come from the private sector. These proposals can result in new infrastructure ideas that may not yet be captured by existing government plans, and they operate to assist the government in identifying economically valuable projects when it lacks the necessary financial resources to execute such projects through the solicited approach.³

The USP process, however, is not without controls. As public interest is paramount, the USP process is guided by stringent rules to prevent abuse and ensure government accountability. To guarantee that USPs would not become a medium for bypassing government procurement and anti-corruption measures, all USPs must first pass a completeness check by the PPP Center within 10 days from receipt thereof, followed by a detailed evaluation by the implementing agency.⁴ Guidelines are also in place to regulate the conduct of negotiations for PPP projects.⁵ The following government undertakings however are prohibited in a USP: Visibility Gap Funding (VGF) and other forms of subsidy; payment of right-of-way related costs; performance undertaking; additional exemptions from any tax other than those provided for by law; guarantee on demand; guarantee on loan repayment; guarantee on private sector return; government equity; and contribution of assets, properties, and rights.⁶

To promote competition and transparency, all accepted USPs are subject to a comparative challenge process, wherein third parties are invited to match or surpass the original proposal. The implementing agency shall carry out the comparative challenge, either through manual or electronic means, within a certain approved timeline. This period must consider the specific nature and complexity of the PPP project and shall not be shorter than 90 calendar days nor longer than one year. The original proponent retains the right to match any submitted proposal but only after other potential challengers are given a fair and open opportunity to submit competing offers.⁷ This is a safeguard against sweetheart deals while preserving the incentive for private firms to develop high-quality and well-structured proposals.

A key innovation to the USP process is its time-bound structure. Under the new framework, an Unsolicited Proposal first undergoes a 10-day review by the PPP Center to check for completeness and identify the appropriate approving body. Once endorsed, the implementing agency is given 90 calendar days to conduct a detailed evaluation of the proposal. If the agency fails to act within the 90-day period following the end of this evaluation period, the proposal is automatically deemed approved, subject to any liabilities of responsible officials. If the implementing agency decides to accept the proposal following its detailed evaluation, the head of the implementing agency must issue a Notice of Acceptance to the private proponent within three calendar days from the end of the evaluation period. The implementing agency must also issue a Notice to Commence Negotiations within the same three-day window. Thereafter, the negotiation period officially begins, lasting for 80 calendar days. This period may be extended by mutual agreement between the implementing agency and the private proponent, but in no case shall the total negotiation period exceed 150 calendar days.⁸

These guidelines address historical bottlenecks in the approval process and enhance investor confidence by providing a clear and enforceable timeline. In fact, failure of the agency to act on a proposal within the prescribed timeframes may result in the proposal being deemed approved, a provision meant to curb bureaucratic obstacles while still holding erring officials accountable under law.

In addition, USPs support the autonomy of local government units by enabling them to receive and process local USPs, helping foster community-level innovation and infrastructure delivery that is tailored to local needs. These projects must still comply with national policies on transparency, risk management, and sustainability, including climate resilience and gender integration, ensuring alignment with broader national objectives.⁹

Ultimately, for businesses, the USP mechanism represents a powerful avenue to directly propose projects that align with their strategic interests, technologies, and areas of expertise that the government has yet to consider. Unlike traditional procurement, where government agencies dictate the project structure and scope, USPs empower the private sector to take the initiative, identifying infrastructure gaps, and proposing economically feasible solutions to such infirmities. This opens new commercial opportunities while supporting national development priorities, creating a win-win scenario where business innovation can directly drive inclusive and sustainable growth. n

¹“Public-Private Partnerships in Developing Asian Countries: Practical Suggestions for Future Development Assistance,” ADBI Policy Brief No. 2021-5, September 2021

²“Philippines: Meeting Infrastructure Challenges,” The International Bank for Reconstruction and Development/The World Bank, 2005)

³“Unsolicited Proposals: An Exception to Public Initiation of Infrastructure PPPs,” Public-Private Infrastructure Advisory Facility, 2014

⁴RA 11966, Sec. 10(a)

⁵PPP Governing Board Resolution No. 2025-01-02

⁶Ibid., Sec. 10(c)

⁷Ibid., Sec. 10(e)

⁸Ibid., Sec. 10(a)(b); PPP Governing Board Resolution No. 2025-01-02

⁹RA 11966, Sec. 2

The views and opinions expressed in this article are those of the author. This article is for general informational and educational purposes only and not offered as and does not constitute legal advice or legal opinion.

Jackie L. Quiñones is an associate of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW), Davao Branch.

(6382) 224-0996

jlquinones@accralaw.com

Arts & Culture (04/09/25)

April 9, 2025 | 12:01 am

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ArtistSpace holds Clarence Eduarte solo show

THE exhibit Plantae, by artist Clarence Eduarte, presents images of nature, particularly the intricate beauty of the plant kingdom, at the ArtistSpace in Makati City. His works aim to translate organic rhythms and quiet strength into modern, expressive compositions. His exhibit is on view until April 15. Plantae is an invitation to slow down, to look deeper, and to rediscover our relationship with the environment.

Soloist Andrea Obiso at PPO concert

THE Philippine Philharmonic Orchestra (PPO) will close its 40^th concert season, dubbed Forte, with a performance by acclaimed Italian guest violinist Andrea Obiso. The final show of the year, scheduled on April 11, at 7:30 p.m., will feature a new concerto from PPO’s composer-in-residence Jeffrey Ching, at the Samsung Performing Arts Theater in Makati City. PPO Concert VII: Finale will see Mr. Ching’s Concerto for Orchestra performed under the baton of Grzegorz Nowak. Meanwhile, Mr. Obiso will interpret Camille Saint-Saëns’ Violin Concerto No. 3. Tickets, ranging from P1,500 to P3,000, are now available via TicketWorld.

Galerie Stephanie presents trio of solo exhibits

THERE are three solo exhibitions running at Galerie Stephanie, delving into nuances of motion, perception, and equilibrium. Moving Still by Nicole Bitas examines the beauty found in life’s quiet pauses while Shifting Reality by Michael Orlina aims to push the boundaries of glass as a medium. Finally, The Theory of Balance by Jomike Tejido explores balance as a fluid and evolving state using earthy tones and kinetic sculptures crafted from resin, brass, and metal. All three exhibits are open to the public until April 27 at Galerie Stephanie, 6/F East Wing of Shangri-la Plaza, Mandaluyong City.

Virgin Labfest now accepting playwright applications

YOUNG aspiring playwrights can now apply for the Virgin Labfest XX Writing Fellowship Program until April 30. The Cultural Center of the Philippines (CCP), through its Artist Training Division, is opening the program to applicants 18 to 29 years of age. Chosen writing fellows pay a registration fee of P2,500. The announcement of accepted applicants is on May 20. The fellowship will run from June 17 to 29. Visit the Virgin Labfest pages for more information.

Alliance Française puts up Siargao exhibit

THE exhibit Tinted Tides depicts the oceanic soul of Siargao island, especially its fishermen who are overlooked in the face of rising tourism. On view at the Alliance Française de Manille Gallery at Nicanor Garcia Ave., Makati City, the exhibition also serves as a fundraiser, with 10% of the proceeds going to marine education in local communities, in partnership with Oceanus. The exhibit, which features the works of artists Camille Robiou Du Pont and Charlotte Lamy, runs from April 10 to May 3.

Spanish photographer at Instituto Cervantes

RENOWNED Spanish photographer Bernardo Aja is bringing his portrait series, EntreMuros, to Instituto Cervantes de Manila in Intramuros, Manila. Presented by the Embassy of Spain in collaboration with De La Salle College of Saint Benilde and the Intramuros Administration, the show will run from April 10 until July 1. It will feature portraits taken in Cebu, Negros, and Luzon in 2018, offering a profound look into Filipino identity. From April 10 to 11, Mr. Aja will also lead a hands-on photography workshop at Instituto Cervantes, titled “Trades and Chores,” which will guide participants through Intramuros to document the people and professions that shape Manila’s historic district. Admission is free.

ARTablado spotlights Batangas and Baras art group

ARTABLADO turns the spotlight on BAGSIK and BAG, two dynamic art groups, this month. BAGSIK, short for Batangueñong Grupo sa Sining at Kultura, hails from Batangas, while BAG, or the Baras Artist Group, represents artists from the town of Baras in Rizal province. Both groups have found a creative home in ARTablado, the advocacy arm of Robinsons Land Corp. dedicated to providing a platform for visual creators. BAGSIK presents Bahaghari: Mga Kulay ng Sining — a vibrant showcase of 42 artists whose works span various media, including oil, acrylic on canvas, watercolor, mixed media, clay and scrap iron, magazine mosaic, and digital photography — which is on view at ARTablado in Robinsons Galleria until April 15. Meanwhile, BAG’s third collective exhibit, Art Flow, is on view at ARTablado Robinsons Antipolo until April 15.

IPOPHL marks National Intellectual Property Month

THE Philippines is celebrating National Intellectual Property Month this April with programs that highlight the importance of protecting and respecting intellectual property (IP) rights. This year, there is a special focus on the power of music. Its theme is “IP and Music: Bringing the Pinoy Beat to the World,” which connects with the World Intellectual Property Organization. For more details, visit the Intellectual Property Office of the Philippines’ (IPOPHL) site and social media pages.

European Central Bank rates could fall faster as recession risk mounts

April 9, 2025 | 12:01 am

FRANKFURT — A global market rout induced by US President Donald J. Trump’s tariffs scheme has solidified the case for another European Central Bank (ECB) rate cut next week and supports arguments for even quicker policy easing from the world’s second-largest central bank.

The expected economic slowdown induced by the tariffs along with the fallout from the market volatility are likely to be such a drag on prices that they will likely outweigh the inflationary impact of any retaliatory measures by the European Union (EU), economists say.

Markets now see almost two rate cuts in the ECB’s next two meetings and see between three and four steps between now and the end of the year. German bond yields, the euro zone’s benchmark, were once again falling on Monday as markets priced in a recession in the bloc and monetary easing to deal with it.

While ECB policy makers are far from a consensus on what it all means in the longer run, the rout makes next week’s rate cut a near certainty and interest rates could fall far deeper this year than earlier thought without jeopardizing the 2% inflation target.

In fact, the market turmoil is so great, a recession is now a real possibility and propping up growth could soon become a bigger concern than inflation, which has run above the ECB’s target for the past four years.

“They have to cut at every meeting, if only because of the uncertainty,” Frederik Ducrozet at Pictet Wealth Management said. “There is no sign of increasing inflationary pressure over the longer term.”

A raft of influential ECB policy makers, including Pierro Cipollone, Francois Villeroy de Galhau and Yannis Stournaras have all called for more policy easing in the current environment and none of the key hawks have pushed back.

Speaking in private, some policy makers even questioned the ECB’s own projection that tariffs plus the EU’s own retaliation would only lower growth by a half a percentage point in the first year and argued that the impact would be larger.

Indeed, oil prices were sharply lower on Monday, yields were down, gold was down and longer-term inflation pricing was falling, a combination of market moves suggesting that a recession is now expected.

The EU is — for now — prioritizing negotiation over retaliation versus the US.

However, more hawkish ECB policy makers, speaking in private, argue that the central bank may be underestimating the inflationary impact of the tariff measures and its prediction of a short-lived price effect may be off.

They argue that tariffs mean less trade, new value chains and higher costs, all pointing to higher underlying inflation in the longer term, much like in the decades before globalization.

MORE THAN RATE CUTS?
The ECB has long said that rate cuts are its primary policy tool but the bank also has a wide range of ready-to-use unconventional instruments in case the market rout morphs into a full meltdown.

The ECB will get nervous if bank lending is impaired, the yield differential between euro zone member states rises to levels that are deemed unjustified and disorderly or if there is a surge in investment grade yields.

The big difference compared with previous crises is that Mr. Trump controls the narrative and could end the turmoil with a stroke of a pen or could even make it far worse.

“We’re in a severe correction territory now, not a meltdown, but there is also a potential for this to turn into a full scale meltdown,” ING economist Carsten Brzeski said.

“Should that be the case, we’re back to the ordinary crisis tools like: liquidity injection via bond buying, TLTROs or LTROs, and perhaps a beefed up dollar swap line.”

TLTROs, or targeted longer term refinancing operations, were used in the last decade to provide banks with cheap, multi-year funding, with incentives to use the cash to keep bank lending to the real economy going.

The ECB also has a standing facility with the US Federal Reserve to access dollars in case banks struggle to find the funding on the market. During the pandemic, the weekly operation ran daily.

There is no sign any of this is happening for now. Commercial banks sit on €2.8 trillion ($3.07 trillion) worth of excess liquidity and there was no demand on Monday in the ECB’s daily liquidity tender.

Rate cuts are the focus for the moment, with the market pricing in a 25 basis point reduction next week and then again in June, and one or two more by the end of the year.

Looking further out, Germany’s 10-year bond yield was down 3 basis points to 2.59% by 1240 GMT on Monday as the market priced in a recession. — Reuters