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Philippines, Japan hold maritime drills after RAA ratification

JS TAKANAMI (DDG-110) and BRP Miguel Malvar (FFG-06) execute Division Tactics, maneuvering in close coordination as part of the Bilateral Maritime Cooperative Activity. — JAPAN MARITIME SELF-DEFENSE FORCE (JMSDF)

By Kenneth Christiane L. Basilio, Reporter

THE PHILIPPINES and Japan held joint maritime drills in the South China Sea on Saturday, the Philippine military said on Sunday, conducting their first major exercises following the ratification of their Reciprocal Access Agreement (RAA) amid growing tensions in the contested waters.

The Philippines’ missile frigate BRP Miguel Malvar and Japanese destroyer JS Takanami performed anti-submarine warfare drills and cross-deck landing exercises involving a helicopter, the Armed Forces of the Philippines said in a statement.

“This cooperative activity is more than a display of maritime capability — it is a manifestation of our enduring commitment to uphold peace, stability and a rules-based order in the Indo-Pacific,” Philippine military chief General Romeo S. Brawner, Jr. said.

“With the RAA now in effect, our coordination with Japan will only grow stronger and more responsive to the complex demands of our shared security environment,” he added.

The RAA, signed by Manila and Tokyo in July last year, allows for the entry of equipment and troops for military drills and disaster responses on each other’s soil.

It was ratified by the Philippine Senate in December, and entered into force after Japan’s National Diet ratified it in early June.

The Philippines is stepping up efforts to counter China’s expansive claims in the South China Sea, broadening defense partnerships beyond its traditional ally, the US, to include Japan and other western nations.

The Philippines and Japan first conducted their bilateral maritime drills last year, a month after both the countries agreed to the RAA.

“This activity highlights the deepening trust and coordination between the two allies as they respond to traditional and emerging security challenges in the region,” the Philippine military said.

The Philippines and China have repeatedly clashed over disputed South China Sea features, fueling tensions as both uphold their claims in the vital trade route.

DEFENSE MANUFACTURING
Philippine lawmakers in the 20th Congress have been urged to focus on improving the country’s capabilities to build weaponry to bolster its defense capabilities, Chester B. Cabalza, founding president of Manila-based think tank International Development and Security Cooperation, said via Messenger chat. 

A measure complementing the Self-Reliant Defense Posture law should be pursued to help lay groundwork for local defense manufacturing, he said.

“If we fail the second time around, the country will become a laughingstock in the region since it was Manila that first concocted and designed the first Self-Reliant Defense law in Asia,” he said.

The Philippines is trying to counter China’s military presence in the region. It has allotted about $35 billion for military upgrades over the next decade.

Manila has been irked by the presence of Chinese ships within its ecozone. China claims nearly all of the South China Sea via a U-shaped, 1940s nine-dash line map that overlaps with the exclusive waters of the Philippines and neighbors like Vietnam and Malaysia.

A United Nations-backed tribunal in 2016 voided China’s sweeping claims for being illegal, a ruling that Beijing does not recognize.

A political analyst said the Marcos administration should boost public participation in crafting its legislative priority list for the next Congress to foster broader civic engagement and ensure that Filipinos understand how the proposed laws could affect their daily lives.

“It’s counterproductive to enact laws without any public constituency behind them,” Michael Henry Ll. Yusingco, a senior research fellow at the Ateneo Policy Center, said via Facebook Messenger chat. “The public scarcely knows any of these LEDAC (Legislative-Executive Development Advisory Council) bills.”

“Whatever LEDAC prioritizes for the 20th Congress, it would be more optimal to build a constituency behind their priority measures,” he added.

The Malacañang releases a list of priority bills to help accelerate legislative action, with endorsements sought through letter-requests addressed to government agencies and private sector groups, according to LEDAC’s website.

Deliciously healthy through the years: Kenny Rogers Roasters celebrates 30 years of flavorful legacy

Kenny Rogers Roasters is renowned for serving “deliciously healthy” meals and is proudly celebrating its 30th anniversary—a remarkable feat in a fast-paced, trend-driven industry where longevity is a true badge of success. Since 1995, the brand has grown into the country’s leading fast-casual restaurant, with over 150 stores nationwide. Known for its signature roasted chicken, hearty sides, and exciting food innovations, Kenny Rogers Roasters has redefined how Filipinos enjoy wholesome meals—proving that true greatness only gets better with time.

Redefined What Healthy Tastes Like

For the past 30 years, Kenny Rogers Roasters has redefined what healthy tastes like by offering wholesome, flavorful meals in a fast-casual setting. Known for its Classic Roasted Chicken—tender, juicy chicken slow-roasted to perfection—the brand has become a staple in Filipino households.

Kenny Rogers Roasters also offers a well-rounded menu that balances indulgence and nutrition, featuring staples like the fall of the bone ribs, Healthy Plates and Salad—complete with calorie counts to give customers greater transparency and control over their meals. Complementing its main dishes are a variety of comforting side options that have become fan favorites over the years, including the iconic corn muffin, mac and cheese, and steamed vegetables.

These thoughtfully crafted combinations reflect the brand’s enduring commitment to making deliciously healthy food both satisfying and accessible to all.

Kenny Rogers Roasters continues to innovate with bold, globally inspired flavors that excite the palate while staying true to its healthy roots. Limited-time offerings such as the Four Cheese Roast, Great Garlic Roast, Truffle Roast, and Chimichurri Roast have added variety and excitement to the menu, proving that nutritious food can also be indulgent and crave-worthy. By staying ahead of trends and listening to what customers want, Kenny Rogers Roasters has solidified its reputation as a trailblazer in the industry—one that leads with purpose and flavor.

“I Love Me Better”: The Campaign that Marks Legacy

To celebrate its 30th year, Kenny Rogers Roasters is launching its most personal and empowering campaign yet: “I Love Me Better.” The brand recognizes that choosing better for yourself—especially when it comes to food—takes intention and courage. This campaign champions self-love through mindful eating, reminding everyone that even small decisions, like opting for healthier meals, can be powerful acts of self-care.

Marketing Director Lorent Martin Adrias explains that Kenny Rogers Roasters is for those who believe every better choice matters. “Sometimes, better choices start with something as simple as choosing better meals for yourself. When we choose healthier, better meals, we’re not just fueling our bodies but embracing self-love,” he says. “Choosing Kenny Rogers Roasters is more than a meal decision—it’s a commitment to loving yourself better.”

Reflecting this bold message, the “I Love Me Better” campaign took over high-traffic, unexpected spaces—from a full train wrap on LRT-1 and bus wraps in BGC to bike boards and inspiring billboards along EDSA. Each placement carried messages of self-love and empowerment, turning everyday commutes into bold reminders to choose better. The campaign also introduced a new, feel-good jingle now streaming on Spotify, extending the message through music.

For three decades, Kenny Rogers Roasters has led with purpose—redefining what deliciously healthy means while influencing communities through innovation and impact. “The legacy of Kenny Rogers Roasters is unmatched,” Adrias concludes. “And the future is set to raise the bar even higher.”

 

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Protecting every saver: Deposit insurance adds another layer of protection to hard-earned profits

A sari-sari store around the corner, eateries lining up on the side of a street, 24/7 community laundry shop, or a digital marketing start-up agency are just a few examples of MSMEs or micro, small, and medium-sized enterprises that play a crucial role in providing employment and driving economic growth.

Data from the Philippine Statistics Authority (PSA) showed that for 2023, 99.63% of the total recorded business enterprises operating in the country are MSMEs.

Angela started her baking business both as a side-hustle and as an outlet for her love for desserts, initially offering her baked goods to family and colleagues. When the pandemic shifted how people do business that led to the rise of e-commerce, Angela also explored using social media to widen the reach of her business.

“Mahirap na umasa lang sa buwan-buwan na sahod. Kailangan maging madiskarte dahil sa pangangailangan ng pamilya, kaya sumubok ako sa pag-nenegosyo. Naisip ko dahil mahilig naman ako mag-bake, bakit ‘di ko subukan? Ino-offer ko lang nung umpisa sa mga kamag-anak, kakilala, at mga katrabaho, hanggang sa nagpo-post na rin ako sa social media. Ngayon ay nag-iisip ako na mapalago pa lalo ang negosyo (It’s hard to rely only on the monthly salary. You have to be resourceful because of the needs of the family, that’s why I decided to try starting a business. Since I love baking, I thought, why not give it a shot? At first, I offered my baked goods to family, friends, and co-workers. Then, I started posting about it on social media. Now, I’m thinking of growing the business even more),” Angela shared of her business journey, thus far.

For business owners like Angela, having a savings account is important if they want to grow their business. First, saving in banks provides business owners access to credit, which will come in handy if they want to apply for a loan to finance their business operations or plans for expansion. Second, it gives them access to bank products and tools that will make transactions with suppliers and customers easier. More importantly, it ensures business owners’ hard-earned profits are secured in banks.

Adding another layer of security and protection to bank deposits is deposit insurance provided by the Philippine Deposit Insurance Corporation (PDIC). The PDIC insures deposits in banks licensed to operate by the Bangko Sentral ng Pilipinas (BSP).

Many MSMEs and start-ups, including Angela, have gravitated towards digital transactions and even mobile apps, which have become increasingly popular in the country due to factors that make banking more convenient and rewarding.

“At the end of each month, sinisiguro ko na may naitatabi rin ako sa bangko. Ngayon ay meron akong dalawang savings account, isa sa traditional bank at isa sa digital bank. Unti-unti kong binubuo ang capital para sa pangarap na mapalaki pa ang aking baking business. Sa pag-iipon sa bangko, panatag ako na secured ang negosyo goals ko. (At the end of each month, I make sure to set aside some savings in the bank. Right now, I maintain two savings accounts, one in a traditional bank and another in a digital bank. Little by little, I’m saving up the capital I need to grow my baking business. Saving in the bank gives me peace of mind, knowing my business goals are secure),” Angela said with optimism.

The new maximum deposit insurance coverage (MDIC) of P1 million took effect on March 15, 2025. This upward adjustment in the MDIC since it was last set to P500,000 in 2009, offers greater protection for bank deposits and grants individuals and business owners, like Angela, more peace of mind and confidence that their hard-earned deposits in banks are safe and secure.

To learn more about the new MDIC, you may visit www.pdic.gov.ph/MDIC.

 

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PHL external debt hits $146.74B at end-March

South Korean won, Chinese yuan and Japanese yen notes are seen on US 100 dollar notes in this file photo illustration. — REUTERS

EXTERNAL DEBT outstanding rose 14% to $146.74 billion at the end of March, with the government and banks ramping up their borrowing, the Bangko Sentral ng Pilipinas (BSP) said.

The central bank added that compared to the end of 2024, external debt rose 6.6%.

“The increase in external debt in the first quarter was primarily attributed to the National Government’s fund-raising activity meant to support infrastructure projects and other budgetary requirements,” the BSP said.

This brought the external debt as a percentage of gross domestic product (GDP) to 31.5% from 29.8% in the fourth quarter, a level that “still reflects the country’s ability to repay its external obligations.”

External debt includes all types of borrowing by residents from nonresidents.

The BSP said the National Government (NG) raised $5.06 billion from global bonds and loans extended by foreign development institutions.

In January, the government raised $3.3 billion by issuing dollar and euro-denominated sustainability bonds, including $1.25 billion from 10-year US bonds, $1 billion from 25-year US bonds and one billion euros from 25-year euro bonds.

It was the NG’s first global bond offering for the year.

The central bank also reported public-sector net availments of $91.54 billion at the end of March, while the private sector’s net availments hit $55.21 billion.

Banks also tapped overseas markets for “short-term financing to support trading operations and address liquidity needs.”

At the end of March, gross international reserves (GIR) stood at $106.67 billion and represented 3.27 times cover for short-term debt based on remaining maturity.

The GIR is forecast at $105 billion this year, down from the $110 billion projected earlier.

“The GIR level continues to provide a robust external liquidity buffer, despite the downward trend of the short-term external debt cover in recent years,” the BSP said.

Over the same period, short-term external debt based on remaining maturity was $32.67 billion.

The debt service ratio declined to 8.4% at the end of March from 9% a year earlier. The indicator of capacity to service debt compares loan payments with income from exports and other inflows.

The decline was attributed to the lower principal and interest payments by resident borrowers in the first quarter, the BSP said.

The government plans to borrow P2.55 trillion this year, of which P507.41 billion will come from external sources. — Aubrey Rose A. Inosante

Iran’s four possible responses to Israel — and their risks

STOCK PHOTO | Image by Javad Esmaeili from Unsplash

By Hal Brands

ISRAEL’S ATTACK on Iran opens the next phase of the Great Middle Eastern War that began on Oct. 7, 2023. Over the past 20 months, that war has played out on fronts across the region and has drawn in actors from around the globe.

There is much we don’t yet know about what has happened, let alone what will happen. But it is clear that Iran has suffered significant damage to its leadership, its military and industrial capabilities, and perhaps its nuclear program. The endgame of this conflict and the future of the region will be profoundly shaped by how a wounded Iran responds.

There are four basic possibilities. Their consequences range from a bigger, bloodier Middle Eastern mess to a potentially surprising diplomatic denouement: a far stronger nuclear deal than President Donald Trump could have gotten just a few days ago.

First, Iran could go nasty but narrow, striking back against Israel but avoiding US bases or other regional targets. Drone, missile, or terrorist attacks against Israel (some of which are already underway) would offer a measure of vengeance. But this strategy would seek to avoid triggering a larger, riskier conflict with Washington.

The problem is that America is already involved in this conflict: Trump has pledged to help Israel defend itself. A narrow response could thus look pathetic if Tehran’s remaining weapons can’t penetrate Israel’s multi-layered (and multi-nation) air and missile defense. And even if Iran draws blood, Israel will just keep coming, as these opening strikes were the beginning of a larger military campaign.

If Iran needs to make a bigger statement, it could go big and broad. In addition to hitting Israel, it could strike US personnel, facilities and partners from Iraq to the Persian Gulf. It could also activate its proxies — the Houthis, Iraqi Shia militias, and what remains of Hezbollah — in a bid to set the region on fire.

That strategy has appeal as a way of restoring deterrence against dangerous enemies. It would remind the world that even a weakened Iran can cause real pain. But it would also cross the red line Trump has drawn against attacks on US targets. So Iran could find itself fighting a bigger war against Israel and the US, fraught with existential dangers for an already battered regime.

The third possibility — nuclear breakout — could be just as dangerous. Depending on how much nuclear infrastructure is left — particularly the buried, hardened uranium enrichment facility at Fordow — Tehran could withdraw from the Non-Proliferation Treaty and make a desperate push for the bomb.

Iranian leaders might see this as their best option for salvation, given how badly Tehran’s conventional capabilities and proxy network has been degraded. If Iran did make it across the finish line, the result would be terrifying — a bloodied, vengeful terrorist state with the destructive power of nuclear arms.

The obvious risk is that Iran might never make it. A sprint for nuclear weapons would cross another Trump red line. It could bring US intervention, with bunker-busting bombs that set back the Iranian program far more decisively than Israel could. So this scenario, too, seems likely to set off a larger regional war, probably ending in a devastating Iranian defeat.

That leaves the final option — one Trump is urging Tehran to take. Iran could wave the white flag and cut a nuclear deal, perhaps after a symbolic, face-saving retaliation. That deal would be far worse than anything Tehran might have hoped for a few days ago. It would be closer to the “Libya option” — the total dismantling of the nuclear program — than “Obama 2.0.”

The Iranian regime, which views the nuclear program as a guarantee of both its own survival and national security, would hate to take this path. But it might consider it, if other options lead to disaster. The Islamic Republic has made painful concessions before.

Ayatollah Ruhollah Khomeini settled the Iran-Iraq War in 1988 rather than risk US intervention: Accepting peace, Khomeini acknowledged, was the cost of preserving the Islamic revolution. Tehran also drew in its horns, momentarily, after the US overthrew Saddam Hussein in Iraq in 2003, and it looked like the ayatollahs might be next.

If Iran chooses this course, it would be a remarkable reversal: Less than two years ago, Israel was badly shaken and Tehran and its proxies seemed ascendant. It would be a triumph for a nuclear non-proliferation regime that has, lately, been under strain. It would be a diplomatic windfall for Trump, who didn’t want an Israeli strike but now might benefit from it. And it would be a reminder that force doesn’t always undercut diplomacy: It can, in fact, be indispensable to its success.

None of this is guaranteed, of course. A week from now, the Middle East could be consumed by a larger, more brutal war. But it is worth admiring the fact that Israel’s attack has left a terrible regime with only terrible options — and, perhaps, created a narrow path to a better outcome for the region and the world.

BLOOMBERG OPINION

Making science-backed skincare accessible for Filipinos

DERMOREPUBLIQ 1% Hyaluronic Acid + Snail Mucin Serum

SKINCARE has become increasingly focused on products that balance safety, effectiveness, and accessibility. Consumers today often look for brands that use proven ingredients, provide clear, and tailored results at reasonable price points. This is the space Dermorepubliq is positioning itself, offering science-backed formulations designed for Filipino skin needs without the premium price tag.

Dermorepubliq was founded by Keith Sta. Barbara, during the pandemic after he experienced worsening acne due to stress and changes in routine. Frustrated by the high cost and limited availability of effective skincare, he decided to create an affordable, science-based alternative. “I liquidated my personal assets and enrolled in a two-year diploma course in natural skincare formulation in Australia,” Mr. Sta. Barbara said in an e-mail interview with BusinessWorld. The brand launched its first products in October 2020 and has since grown with a focus on making skincare accessible to Filipinos.

Touting its “science-backed” skincare products, Mr. Sta. Barbara maintains that every Dermorepubliq product is developed based on research, clinical data, and safety standards. “We consult with licensed chemists, pharmacists, and dermatologists during the formulation and testing phases to ensure efficacy without compromising safety, especially for sensitive and acne-prone skin,” he explained.

To keep prices low, Dermorepubliq avoids costly branding and packaging expenses, relying instead on direct-to-consumer sales through platforms like TikTok Shop and Shopee. Sta. Barbara noted, “Instead of inflating prices through branding or heavy packaging, we focus on streamlined operations and local research and development. This allows us to offer premium actives like niacinamide, alpha arbutin, and hyaluronic acid at prices below P500.”

Most of the brand’s serums, such as the 1% Hyaluronic Acid + Snail Mucin Serum, are priced at P369 for 30 ml. Its ampoules — which are more concentrated and used less frequently than daily serums — such as the 82% Cica Clarifying Ampoule, retail at P699 for 30 ml.

The brand primarily targets men and women aged 18 to 35, particularly young professionals and Gen Z consumers looking for affordable skincare with visible results. Dermorepubliq engages this audience through educational content on social media, offering straightforward products backed by user reviews and strengthened by word-of-mouth recommendations.

The fact that the brand’s market is looking for accessibility and effectivity is a sign that Filipinos are “more educated and ingredient-aware than ever before.”

“This signals a shift in the market: consumers are no longer just buying skincare, they’re buying into science, safety, and efficacy,” he said. “Skincare decisions today are increasingly guided by science rather than branding alone.”

THE LONG GAME
Looking ahead, Dermorepubliq plans to expand its product range to better suit tropical climates. The company also intends to introduce educational programs to support aspiring skincare entrepreneurs.

“I envision transforming Dermorepubliq into not just a brand, but a learning platform mentoring aspiring skincare entrepreneurs and offering training in formulation and brand-building,” Mr. Sta. Barbara said before adding that the long-term goal is to “build a homegrown skincare ecosystem that empowers more Filipinos.

Dermorepubliq products are available online at dermorepubliq.com and via TikTok Shop and other e-commerce sites. — Zsarlene B. Chua

 

Zsarlene Chua is a former BusinessWorld reporter who is now a fledgling PR girl. She’s all about skincare, makeup, and video games — and occasionally food. None of the products she reviews or writes about are the writer’s clients. Contact the author at zsarlene.chua@gmail.com.

Still a fresh pick

PHOTO BY PABLO SALAPANTAN

A taste of Asador with the Ford Territory

By Pablo Salapantan

FOLLOWING the launch of the Ford Territory a couple of years ago, it had been an instant hit with many new car buyers. Now in its second generation, the Territory has carved out a reputation for being practical, spacious, feature-packed, and for providing value for money.

But how does it fare now amid more competition in its segment? We reacquainted ourselves with the model during a short but fulfilling (and filling) southward media drive.

If there’s one thing the Ford Territory has going for it is that among the competitors it’s considered one of the more stylish options. I’m well aware that most of the people who buy the Territory are younger and “more in-tune-with-the-times” type of people.

As such, Ford Philippines’ idea for a media drive was to bring us to a place ripe for Instagram stories and TikTok videos, the Asador restaurant in Alfonso, Cavite. This place is the brainchild of a family along with Chef Chele of Gallery by Chele fame.

Our convoy of Territory SUVs drove out of the Metro bright and early and headed south in an organized and rather relaxed fashion. The Territory’s party trick has always been space and comfort, and I was reminded of how this latest generation takes it further with more space and, somehow, a better ride.

Another great thing about the Territory is that it offers the complete experience in terms of what a 2025 car buyer wants — all the accoutrements like Apple CarPlay, Android Auto, and many more are standard.

We arrived at a seemingly very private farm estate which houses Asador. The design of the building is very modern and functional, much like the Territory. We weren’t able to take photos of the main structure due to privacy concerns; the restaurant is sandwiched between two homes.

Our delegation was then shepherded up the restaurant to partake in a culinary challenge, wherein we were grouped and tasked to create our own rendition of ceviche or kilawin, a raw fish dish marinated in vinegar and citrus extract, and mixed with spices and herbs before serving. My group actually won for third best dish, considering I can’t actually eat raw fish due to an allergy. I applaud my teammates!

The cooking competition certainly got our appetites going. Good thing the Asador crew served us some of their greatest hits in a multi-course meal with generous portions — ranging from seafood, vegetables, and meat.

Before heading back to Manila, we were toured around the farm to get an idea of how Asador is running it to supply ingredients. While farm is admittedly still modest in scale, the seriousness with which Asador approaches farming is already paying dividends in the freshness of the food served by the restaurant.

And while the Ford Territory now isn’t the newest in the segment, it still feels fresh and relevant for anyone looking for a proper crossover. I liken the Territory to people who live in the now, those with appetites to explore without compromise. The Territory incorporates key ingredients and adds a twist of modernity as a means of mobility.

Delays in impeachment trial likely to favor VP Duterte, analysts say

VICE-PRESIDENT Sara Duterte at the deliberations on the proposed 2025 budget for the Office of the Vice President at the House of Representatives in Quezon City. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Adrian H. Halili, Reporter

REPEATED delays in the impeachment trial of Vice-President (VP) Sara Duterte-Carpio could signal a strong likelihood that the case will be dismissed, analysts said at the weekend.

“Given that it will now be up to the 20th Congress to determine the next steps and how the trial will be like, then there is a big possibility that the impeachment will be junked later on given the turnout of the recent midterm elections,” Josue Raphael J. Cortez, a diplomacy lecturer at De La Salle-College of St. Benilde, said in a Facebook Messenger chat.

Last week, Senator-judges voted against dismissing the trial, but moved to return the articles of impeachment to the House of Representatives to certify its non-violation of the Constitution and to assure that it will pursue the trial in the 20th Congress.

This came after heated debates among its members after a Duterte-allied senator filed a motion to dismiss the case, hours after the chamber convened as an impeachment court.

“From the political side of things, every delay is an opportunity to outmaneuver and outwit an opponent,” Arjan P. Aguirre, who teaches political science at the Ateneo De Manila University, said in a Facebook Messenger chat.

He added that advocates of the impeachment of Ms. Duterte should use the delay in their favor by continuing to raise awareness about their findings on the unexplained spending and the efforts of the Duterte camp to undermine the impeachment process.

“They should not allow the Dutertes to control the discussion and debate on the issue. They should inform and educate the people about the matter — avoid getting careless in dealing with the Dutertes and be outrageously reliant on fake news, mudslinging and vitriolic exchanges,”Mr. Aguirre said.

Moreover, Mr. Cortez said that there is a need for the Supreme Court (SC) to exercise its mandate and intervene.

“The Supreme Court can undoubtedly intervene in the matter as this is highly political in nature, not merely involving the Senators and the parties, but also the Filipino people,” he added.

He noted that the high court had previously intervened during the impeachment of former Chief Justice Renato Corona, where it denied the impeachment body to inquire about Mr. Corona’s foreign currency account.

Mr. Aguirre added that the SC can intervene if it finds any abuse of power involved in the impeachment proceedings.

The delays in the impeachment process have also raised concerns among business groups, which have warned of the potential impact on investments and the economy.

The Makati Business Club (MBC) said that proceeding with the impeachment trial would be critical in further attracting local and foreign investors.

“The impeachment trial must proceed, to prove the prevalence of the rule of law and the strength of our institutions. We believe these are critical to attract both foreign and local investments,” MBC Executive Director Rafale Onping told Businessworld.

Separately, the Financial Executives Institute of the Philippines (FINEX) urged members of Congress to conduct the process with transparency and in adherence to the Constitution.

“We believe that doing anything less will have serious effects on public trust, which in turn will impact our social stability and economic progress,” FINEX said in a statement.

“No digression, no delays, no backsliding, no shortcuts. It requires straightforward execution. Finding the truth and judging from knowing the truth are the only objectives of this process,” the group added.

The House impeached the Vice-President on Feb. 5, alleging secret fund misuse, unexplained wealth, acts of destabilization and plotting the assassination of President Ferdinand R. Marcos, Jr., his family, and the Speaker of the House. Ms. Duterte has denied any wrongdoing.

The impeachment complaint was filed and signed by more than 200 congressmen, meeting the more than one-third legal requirement before it was sent to the Senate. This also coincided with the last day before the midterm election break.

Pangilinan sees continued Maya profitability

MPIC/BW FILE PHOTO

MAYA, the digital finance platform partly owned by listed telecommunications firm PLDT Inc., is expected to sustain profitability this year, supported by positive contributions from its wallet, merchant, and banking businesses, according to the Pangilinan-led group.

“Maya has three revenue streams: the wallet, the merchant and the bank. And the bank has credit cards and all of them actually have shown positive EBITDA (earnings before interest, taxes, depreciation, and amortization). That is very encouraging,” PLDT Chairman and Chief Executive Officer Manuel V. Pangilinan told reporters last week.

“So, taken as a whole, taken in the round, their profitability has extended all the way to May,” he added.

Beyond the first quarter, he said the platform’s EBITDA remains positive.

Asked about PLDT’s plan to increase its stake in Maya, Mr. Pangilinan said: “There is nothing definitive to report at this time.”

“I think it’s good that management is focused on continuing to operate the three revenue streams well,” he said. “So, we’re looking at a few more things that we need to do. But otherwise, I’m quite happy with the results.”

PLDT, which holds a partial stake in Maya, reported an 8.04% decline in its first-quarter attributable net income, as higher expenses outpaced modest revenue growth.

Maya posted a net income of P127 million, driven by strong lending, deposit, and payments volumes.

PLDT expects Maya to generate about P1 billion in profit this year.

Despite the earnings decline in the first quarter, Mr. Pangilinan said the company sees bright spots in home fiber and Maya.

“I think it’s been tough for the past five months. So, the bright spots are home fiber and Maya. But it’s a bit of a struggle on the wireless side and on the enterprise side,” he said.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

More FTAs seen as counter to Trump uncertainty

ASIANTERMINALS.COM.PH

THE PHILIPPINES will need to continue negotiating more free trade agreements (FTAs) to diversify its export markets in the face of the uncertainty posed by the US reciprocal tariffs, a former Finance Secretary said.

Margarito B. Teves said that the Philippines, despite being in a “relatively favorable position” due to its 17% reciprocal tariff, should not be complacent and needs to build resilience against external headwinds.

“We should deepen negotiations for FTAs with countries such as India, the United Arab Emirates, and the European Union and fast-track our application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership,” he said at a forum last week.

He added that the Philippines must “continuously support stronger regional integration within ASEAN, accelerating reduction of trade and regulatory barriers.”

Industry groups have noted that even current FTAs are plagued by low utilization, a concern shared by Mr. Teves.

Citing a 2022 discussion paper of the Philippine Institute for Development Studies, he said that only 8.3% of Philippine exporters used FTAs in 2019, while 54.8% of importers did so over the same period.

“This underscores the need for the Department of Trade and Industry to intensify its free trade information roadshows to increase awareness and understanding among firms, especially the micro, small, and medium enterprises (MSMEs), about how to utilize the country’s FTAs,” he said.

“Likewise, there is also a need to streamline the requirements and procedures in utilizing FTAs to further encourage firms,” he added.

Despite the low utilization, he stressed that the Philippines should still deepen negotiations on FTAs with other countries or regional blocs to further expand its options.

“Signing an FTA takes years of discussions among the parties involved because of the complexity of economic and political issues involved. So we need to start early and keep the momentum of the talks going,” he added.

Aside from diversifying export markets, he also called for improved ease of doing business, lower cost of doing business, and prudent fiscal management.

“The recent tariff war is not something that we should be extremely worried about if we keep the fiscal and other portions of our economy in order. We would be very attractive if we can make those conditions really conducive for investment,” he said. — Justine Irish D. Tabile

Marcos told to veto amendments to 12-year-old gun law

STOCK PHOTO | Image by Marek Studzinski from Unsplash

A PHILIPPINE advocacy group urged President Ferdinand R. Marcos, Jr. to veto proposed amendments to the country’s 12-year-old firearms law, warning that the changes could endanger public safety and democratic stability, particularly in conflict-prone areas such as the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).

In a statement released on Saturday, Climate Conflict Action Asia (CCAA) said key provisions of the amendments to Republic Act No. 10591, the Comprehensive Firearms and Ammunitions Regulation Act, as “dangerous.”

In particular, the group flagged a proposal to cut the election gun ban period to 45 days before the vote from the current 90. It will also shorten the gun ban period after election day to five days from 30.

CCAA said the amendment undermines the constitutional authority of the Commission on Elections (Comelec), which is responsible for setting election-related security measures.

“It is illogical, if not outright dangerous and risky, to shorten the gun ban when the first-ever Parliamentary elections in the Bangsamoro is expected in October 2025,” it added, calling the upcoming polls a “decisive, significant, and game-changing” moment for the region.

The call came after a violent midterm election season, which according to CCAA, saw 759 violent incidents in BARMM between October 2024 and May 2025, including a surge of 171 cases in May alone, triple the number reported in April.

Beyond the gun ban provision, the group also raised concerns over other proposed amendments, including an increase in allowable ammunition purchases and extended validity for permits to carry firearms.

Without enhanced regulatory safeguards, the group warned, the revisions could fuel black market flows and embolden misuse.

“Stringent regulatory measures must be in place first if they will allow an increase in ammunition purchase and longer periods for the permit to carry firearms,” CCAA said, noting that the revisions must not serve those seeking unchecked use of firearms.

CCAA urged the Marcos administration to shift focus toward curbing illegal firearms, which it estimates at over 3.2 million nationwide.

Recommendations included creating a dedicated police unit or joint task force to combat illegal arms trafficking, establishing easier registration pathways in BARMM, mandating the destruction of confiscated weapons, and increasing penalties for gun-related crimes.

“The proposed bill contains amendments that are steps backward for peace, public safety, and democratic stability. We urge the President to act decisively: Veto the bill amending [the Comprehensive Firearms and Ammunition Regulation Act] and ask Congress to review its dangerous provisions.” — Chloe Mari A. Hufana

Raising the minimum wage won’t break the economy, but it will help fix what’s broken

The debate over the proposed P100 or P200 minimum wage hike has reignited familiar objections from business groups, a number of economists, and the government’s economic managers themselves. “[Enterprises] may increase prices of goods and/or services, reduce their workforce, or worse shut down operations altogether, affecting both employees and the broader economy,” according to a joint statement by the economic managers of President Ferdinand “Bongbong” Marcos, Jr.

But do these warnings reflect what actually happens when wages go up?

Growing empirical evidence from research here and abroad suggests more nuanced outcomes, disproving the sweeping claim of the economic managers. To quote our own study at the UP School of Labor and Industrial Relations (UP SOLAIR), the impact of new wage orders on employment is mixed. In 2013-14, wage increases had a positive impact on employment. Meanwhile in 2015-16, the impact was negative. In other periods, the impact was insignificant.” (See: “Measuring the Impact of Wage Hikes on Employment and Inflation,” UP SOLAIR, https://solair.upd.edu.ph/impact-of-wage-hikes-on-employment-and-inflation/.)

The idea that wage hikes inevitably cause unemployment or inflation is rooted in outdated theory and overly simplistic textbook models, not real-world data.

To test the claims, we conducted two empirical analyses, one on employment using firm-level data, and the other on inflation, using national and regional economic data. To estimate the impact of wage hikes on jobs, we used a Difference-in-Difference model on firm-level data from the Annual Survey of Philippine Business and Industry from 2013 to 2017. To assess effects on prices, we applied a vector autoregression model using quarterly real wages and Consumer Price Index (CPI) data from 2003 to 2020, with both series transformed into stationary form by differencing their log values.

Let’s begin with jobs. Using a difference-in-difference regression model, we compared employment outcomes in regions that raised the minimum wage with those that didn’t. We controlled for firm size, income, industry, value added, and export orientation.

Our analysis found no consistent evidence that wage hikes lead to job losses (See Table 1). In most years, the employment effects were statistically insignificant, and in some years, even positive. Only one period showed a small decline. Taken with other similar studies, the results reinforce a broader empirical agreement, a near consensus, that wage hikes do not necessarily cause unemployment. In fact, some studies show that a hike in minimum wage can also increase employment.

This finding reflects a global shift in economic thinking. For example, a comprehensive review by the economists Arindajit Dube and Ben Zipperer found that 90% of modern studies show no or only minimal job loss after minimum wage increases. The review affirms the pioneering study, using the difference-in-difference methodology, of 2021 Nobel prize winner David Card and the late Alan Krueger that suggests minimum wage hikes do not lead to job losses and may even result in increased employment.

What about inflation? We studied the effect of wage shocks on prices using a vector autoregression model, using quarterly data on wages from the Labor Force Survey and price levels as measured by the CPI between 2003 and 2020. The impulse response analysis showed that changes in wage hikes had a very small and statistically insignificant impact on inflation. (See Figure 1)

In fact, wage hikes often lag inflation rather than lead it. Policymakers tend to act only after a prolonged erosion of purchasing power, meaning wage adjustments are typically reactive, not inflationary.

This mirrors findings from other studies like that of Bangko Sentral ng Pilipinas researcher Faith Christian Cacnio in 2017 and from other countries, where moderate wage hikes had only minimal effects on prices, and sometimes even led to lower prices. While wage increases can contribute to elevated unit labor costs for firms, the inflationary impact of wage growth can be offset by increasing productivity, especially in the Philippines where labor has long been underpriced.

This brings us to the bigger picture.

The argument that minimum wage hikes benefit “just workers” at the expense of “the economy” is misleading and disconnected. It ignores that the workers are the lifeblood of the economy, a reality that should have been made apparent during the pandemic. Workers are essential and it is essential we grant them a wage recovery.

In fact, depressed wages have been a crutch for the Philippine economy for too long. Firms have relied too heavily on cheap labor. And the state has been lacking in providing the quality and accessible social services such as healthcare and education which are necessary to build our human capital. This is not a model for long-term competitiveness.

The wage hike proposals in Congress, P200 in the House and P100 in the Senate, are not radical. In 1989, Congress legislated an across-the-board wage increase of P25, amounting to a 40% rise in national wages at the time. There was no crisis. The P200 proposal represents a smaller 31% increase for the National Capital Region and is made even more reasonable by provisions for small business support.

More importantly, a minimum wage hike is only a starting point. We must pair this policy with a serious commitment to industrial policy: to raise productivity, support labor-augmenting (not labor-replacing) innovation, and improve competitiveness. Raising wages should be seen as a catalyst to push firms and the government to finally invest in real economic transformation, instead of relying on poverty wages to prop up the fragile status quo.

The case for a minimum wage hike is not confined to adjusting salaries to inflation. It is about restoring fairness in how we share the productivity gains. Since 2001, labor productivity has grown steadily in the Philippines, but real wages have remained stagnant. (See Figure 2) Workers have not received their fair share of the fruits of their labor.

This disconnect is not due to a lack of hard work and productivity, but to a lack of bargaining power. For too long, firms and employers have wielded disproportionate power in the labor market, suppressing wages below what workers truly contribute. The ivory-tower competitive wage theory assumes a level playing field, but the reality is far from it. Labor power is weak. And business owners have great power over the determination of wages; a monopsony. A meaningful wage hike is therefore a just and timely correction.

Workers deserve to live with dignity, and not merely to survive. We should collectively aspire towards building an economy that is just, resilient, and based on shared prosperity.

Wage hikes won’t break the economy. But they will help fix what’s been broken for far too long.

 

The authors also co-wrote of “Measuring the Impact of Wage Hikes on Employment and Inflation,” UP SOLAIR https://solair.upd.edu.ph/impact-of-wage-hikes-on-employment-and-inflation/. Czar Joseph Castillo is a graduate student, formerly a labor policy researcher. AJ Montesa is the fiscal policy program officer of Action for Economic Reforms. Benjamin Velasco is an assistant professor at the UP Diliman School of Labor and Industrial Relations.

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