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PSE, BAP sign share purchase deal for PDS shares

BW FILE PHOTO

THE Philippine Stock Exchange, Inc. (PSE) is moving closer to its planned merger with the Philippine Dealing System Holdings Corp. (PDS) after it signed share purchase agreements with some of the latter’s shareholders.

On Jan. 28, the market operator signed a share purchase agreement with the Bankers Association of the Philippines (BAP), which also represented stakes held by BAP Data Exchange, Inc. and certain member-banks, to acquire 1.16 million PDS common shares, equivalent to an 18.62% stake, the PSE said in a regulatory filing on Wednesday.

The entities signed term sheets in December last year as part of the PSE’s P2.32-billion deal with various shareholders to purchase their PDS shares as part of merging the local capital markets.

The deal comprised 3.87 million PDS shares at P600 apiece, equivalent to a 61.92% stake.

The PSE signed term sheets with BAP for its shares and those owned by BAP Data Exchange and certain member-banks for a 28.83% stake, and with Mizuho Bank Ltd. for its 0.08% stake.

The bourse operator also signed share purchase agreements to acquire Singapore Exchange Ltd.’s 20% stake, Whistler Technologies, Inc.’s 8% stake, San Miguel Corp.’s 4% stake, the Investment House Association of the Philippines’ 0.65% stake, and Golden Astra Capital, Inc.’s 0.36% stake.

The PSE recently announced it would increase its stake in PDS to 88.44% by acquiring 250,000 PDS common shares from AIA Philippines Life and General Insurance Co., Inc., representing a 4% stake, under a share purchase agreement.

The PDS is the holding company that owns fixed income exchange operator Philippine Dealing and Exchange Corp., and the equities and fixed income securities depository Philippine Depository & Trust Corp.

The acquisition of PDS will provide investors with a facility to trade fixed income, equities, and other products in a unified marketplace, the PSE said. — Revin Mikhael D. Ochave

Attacks using deepfakes, artificial intelligence to target Philippine banks

VECSTOCK-FREEPIK

ARTIFICIAL INTELLIGENCE (AI)- and deepfake-based fraud could target financial institutions and consumers in the Philippines, biometric solutions company iProov said.

“There is a massive increase at the moment in terms of identity fraud against systems using generative AI in particular and deepfakes… What we actually see for our customers is a massive rise in the use of deepfakes to try to spoof the identity of customers, both at account opening time, so when the identity is created, but also later to try to overtake those well-established accounts where the trust in the customer is high,” iProov Chief Technology Officer Dominic Forrest said in an online interview.

Bad actors have already started using AI and deepfake for fraud attacks in other Asian countries, Mr. Forrest said, citing a case in Hong Kong where an employee was scammed by fraudsters who used deepfake technology to recreate the voices and faces of their company’s top officials and staff in a video call.

To protect against these types of attacks, Mr. Forrest said Philippine regulators could mandate the use of national identity cards for financial accounts, similar to Singapore.

He said Philippine banks are well-equipped against potential cyberattacks as the Bangko Sentral ng Pilipinas (BSP) has already implemented several cybersecurity-related regulations to ensure consumer protection.

“The Philippines is fortunate enough to have a regulator who is very forward-thinking in the terms of the rules they’re putting in place to protect the banks and the customers, or indeed, for the banks to do this in advance of the regulator. And we’ve seen that in some other geographies around the world,” Mr. Forrest said.

“I think the Philippine banks will have every right to be proud of being ahead of many countries in the region in terms of their general security posture,” he added.

Still, banks need to continuously invest in protecting themselves against new types of fraud as these could cost them consumer trust, Mr. Forrest said.

Firms like iProov can help lenders mitigate cyber threats through solutions that can detect deepfake attacks, he added. — A.M.C. Sy

Who dares wins: The risks and rewards of entrepreneurship

FREEPIK

Live selling is a phenomenon that has driven online retailers forward in today’s business landscape. Pioneered in China, popularized by platforms like TikTok, Instagram and Facebook, and empowered by online markets like Lazada and Shopee, live selling has become both a form of entertainment and a powerful new shopping experience for countless Filipinos. For brands, it has become an essential part of both marketing and sales. For entrepreneurs who have embraced live selling, the rewards are clear and abundant.

I recently spoke to an entrepreneur who built his business around live selling, Michael Cordoviz of M-Commerce Corp. His startup helps brands in their digital marketing efforts, similar to a digital agency but with a focus on live selling.

In just a few years, M-Commerce has become TikTok Shop’s number one partner. The company has about 35 brands in its stable — big brands like Nestle, Realme and Procter & Gamble. These brands have more than 200 livestreams produced by M-Commerce that run every day.

‘SOMETIMES YOU LOSE, SOMETIMES YOU WIN’
Going all-in on live selling makes clear business sense today, but when live selling took off, during and shortly after the pandemic, it was, like all new technologies, a risk.

Michael tells the story of M-Commerce’s beginnings. “In 2022, someone reached out to us and said: ‘Why not try to become an agency?’ So, we thought, ‘Why don’t we try?’ So, my business partner and I decided to take risks on TikTok Live. It was a roller coaster ride, but all of the doubt and hard work paid off.”

I am reminded of the saying that fortune favors the bold, or as the British special forces unit, the SAS, says: “Who dares wins.” Western entrepreneurs often talk about ruthlessly spotting business opportunities. But for Michael Cordoviz, entering a risky business was always about helping other people.

“We always think about the money, right?” Michael says. “But then, for entrepreneurs, it’s really how to help the community and the people around us.”

This goal of providing solutions and helping the community is what drives entrepreneurs like Michael Cordoviz. “It’s not always about money. How can you impact the world and how can you impact the community? So that’s my mindset, that it’s not just for myself or what I can gain. But it’s for other people too. What will they gain from the business that you’re doing?”

By putting problem-solving for communities and consumers first, Michael found the guiding principles for his business. And while he recognizes the risks involved in entrepreneurship, he emphasizes constant learning and continuous improvement to adapt to the changing needs of the business.

“Entrepreneurship is never a straight path,” Michael says. “Sometimes you lose, sometimes you win. But as long as you keep learning and improving, you’ll eventually get there.”

ADOPTING NEW TECHNOLOGY
Michael first spotted the opportunity for M-Commerce and his logistics company Supcart in his travels to China. Seeing how China adopted new technologies like cashless transactions and fast deliveries inspired him to bring these services to the Philippines.

“Technology is so fast,” Michael says about his learnings from China. “I was like, what if they also have this technology in the Philippines? So I thought that maybe after one to two years, I can bring it [to the Philippines]. Because technology can make our lives easier. That’s what I learned there.”

EVOLVING BUSINESS
Like many entrepreneurs, Michael didn’t start with the company that made him famous. He began with other businesses. Each of these businesses would inform Michael as an entrepreneur, and it’s fascinating to trace this evolution and how it led to M-Commerce.

Michael began with a small business selling cameras. Seeing that there were no protective cases for these cameras available locally, he decided to import them. And by learning how to import from China, he spotted another opportunity: helping importers.

“Why don’t we help other Filipinos?” Michael asks. “Give them an opportunity to sell as well in the Philippines. We can help them import.”

From there, Supcart, Michael’s e-commerce distribution and logistics company, was born.

Supcart, in turn, would give birth to another business. From importing, Michael put up another company to help importers in warehousing and fulfillment, Mango Cloud Fulfillment Service.

“That’s the time when a Chinese client approached us and said: ‘We have a product, we have a brand, how do we sell it on TikTok?’” Michael recounts.

From there, Michael decided to try entering this new business. Learning along the way, M-Commerce discovered how to produce videos, what elements made live selling successful, letting it expand its network of live sellers and affiliate marketers.

‘NEVER STOP LEARNING’
Michael Cordoviz’s entrepreneurial journey is exceptional because he quickly adopted new tech. What’s his advice to entrepreneurs? “Adopt changes and adopt the technology.”

“Let’s learn what’s new,” he adds. “Because there are uncles who don’t know what TikTok is. They don’t know that TikTok is the future of selling, the future of entertainment and the future of social media platforms.”

By adopting new technologies, you’ll never stop learning, Michael says. Returning to his guiding principles of helping Filipinos, he says: “Even in our business now, we never stop learning. What else can we offer to our clients? What else can we offer to Filipinos?”

Are there entrepreneurs you want me to interview? Let me know at ledesma.rj@gmail.com. Follow RJ Ledesma on Facebook, Instagram and LinkedIn.

 

RJ Ledesma (www.rjledesma.com) is a Hall of Fame Awardee for Best Male Host at the Aliw Awards, a multi-awarded serial entrepreneur, motivational speaker and business mentor, podcaster, an Honorary Consul and editor-in-chief of The Business Manual. Connect with Mr. Ledesma on LinkedIn, Facebook and Instagram. The RJ Ledesma Podcast is available on Facebook, Spotify, Google and Apple Podcasts.

Nutrition programs unaffected by Trump funding freeze, White House says

RAWPIXEL

NUTRITION programs that deliver food assistance to millions of US families will not be affected by a White House pause on federal grants and loans, a senior official said on Tuesday.

The White House’s Office of Management and Budget said in a memo on Monday that federal grants and loans would be put on hold for review to ensure the programs were aligned with President Donald Trump’s priorities, such as ending diversity and inclusion efforts. The pause, which could disrupt housing assistance, disaster relief, health care, and scores of other programs that rely on federal dollars, is set to go into effect on Tuesday evening.

Payments to individuals, including the Supplementary Nutrition Assistance program (SNAP) and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) would not be affected, the senior administration official said.

About 42 million Americans receive SNAP benefits, which provides cash assistance for food to low-income households, and about six million receive WIC benefits, which provides food and nutrition education to low-income pregnant and postpartum women and their infants and young children, according to the US Department of Agriculture.

However, Ali Hard, policy director at the National WIC Association, said agencies that implement WIC, which is a federal grant program administered by state and local entities, had not yet been given guidance on implementation of the memo.

“For now, WIC remains open and families should continue to come in for appointments and redeem their benefits as usual,” Ms. Hard said.

“Any policy that would put this program at risk would be catastrophic,” Ms. Hard said. —  Reuters

American AI firms try to poke holes in disruptive DeepSeek

STOCK PHOTO | Image by Gerd Altmann from Pixabay

SAN FRANCISCO — Developers at leading US artificial intelligence (AI) firms are praising the DeepSeek AI models that have leapt into prominence while also trying to poke holes in the notion that their multi-billion-dollar technology has been bested by a Chinese newcomer’s low-cost alternative.

Chinese start-up DeepSeek on Monday sparked a stock sell-off and its free AI assistant overtook OpenAI’s ChatGPT atop Apple’s App Store in the US, harnessing a model it said it trained on Nvidia’s lower-capability H800 processor chips using under $6 million.

As worries about competition reverberated across the US stock market, some AI experts applauded DeepSeek’s strong team and up-to-date research but remained unfazed by the development, said people familiar with the thinking at four of the leading AI labs, who declined to be identified as they were not authorized to speak on the record.

OpenAI CEO Sam Altman wrote on X that R1, one of several models DeepSeek released in recent weeks, “is an impressive model, particularly around what they’re able to deliver for the price.” Nvidia said in a statement DeepSeek’s achievement proved the need for more of its chips.

Software maker Snowflake decided Monday to add DeepSeek models to its AI model marketplace after receiving a flurry of customer inquiries.

With employees also calling DeepSeek’s models “amazing,” the US software seller weighed the potential risks of hosting AI technology developed in China before ultimately deciding to offer it to clients, said Christian Kleinerman, Snowflake’s executive vice president of product.

“We decided that as long as we are clear to customers, we see no issues supporting it,” he said.

Meanwhile, US AI developers are hurrying to analyze DeepSeek’s V3 model. DeepSeek in December published a research paper accompanying the model, the basis of its popular app, but many questions such as total development costs are not answered in the document.

China has now leapfrogged from 18 months to six months behind state-of-the-art AI models developed in the US, one person said. Yet with DeepSeek’s free release strategy drumming up such excitement, the firm may soon find itself without enough chips to meet demand, this person predicted.

DeepSeek’s strides did not flow solely from a $6- million shoestring budget, a tiny sum compared to $250 billion analysts estimate big US cloud companies will spend this year on AI infrastructure. The research paper noted that this cost referred specifically to chip usage on its final training run, not the entire cost of development.

The training run is the tip of the iceberg in terms of total cost, executives at two top labs told Reuters. The cost to determine how to design that training run can cost magnitudes more money, they said.

The paper stated that the training run for V3 was conducted using 2,048 of Nvidia’s H800 chips, which were designed to comply with US export controls released in 2022, rules that experts told Reuters would barely slow China’s AI progress.

Sources at two AI labs said they expected earlier stages of development to have relied on a much larger quantity of chips. One of the people said such an investment could have cost north of $1 billion.

Some American AI leaders lauded DeepSeek’s decision to launch its models as open source, which means other companies or individuals are free to use or change them.

“DeepSeek R1 is one of the most amazing and impressive breakthroughs I’ve ever seen — and as open source, a profound gift to the world,” venture capitalist Marc Andreessen said in a post on X on Sunday.

The acclaim garnered by DeepSeek’s models underscores the viability of open-source AI technology as an alternative to costly and tightly controlled technology such as OpenAI’s ChatGPT, industry watchers said.

Wall Street’s most valuable companies have surged in recent years on expectations that only they had access to the vast capital and computing power necessary to develop and scale emerging AI technology. Those assumptions will come under further scrutiny this week and the next, when many American tech giants will report quarterly earnings. — Reuters

Isuzu PHL says new trucks to focus on evolving business needs

BW FILE PHOTO

ISUZU Philippines Corp. said it is working to maintain its market leadership in the truck sector by offering solutions designed to better serve businesses.

“With a clear vision for the future, Isuzu is committed to maintaining its market leadership by introducing more innovative, fuel-efficient, and eco-friendly truck solutions that cater to the evolving needs of Philippine businesses,” the company said in a press release late Tuesday.

In 2024, Isuzu sold 4,591 truck units, which accounted for 41% of the total industry truck sales of 11,252, while dominating all major truck categories.

Isuzu is the country’s sixth-top car manufacturer in terms of total vehicle sales in 2024, according to a joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. and the Truck Manufacturers Association.

The company sold 17,641 vehicles last year, representing a 3.78% market share and a 0.2% increase from 2023.

It was the top-selling brand for light-duty trucks and buses, with 2,812 units sold, representing a 42.96% market share in 2024. However, this was a 7.3% decline from the 3,034 units sold in 2023.

According to the company, the Isuzu N-Series was the best-selling light-duty truck model in the country for the last 26 years.

“The Isuzu N-Series continues to be the top choice for Filipino businesses due to its unmatched combination of durability, fuel efficiency, and adaptability to various business applications,” said Isuzu President Tetsuya Fujita.

“We are proud that our light-duty trucks have remained a staple in the industry, providing dependable solutions that help businesses grow and thrive,” he added.

Isuzu was also the market leader for medium-duty trucks and buses last year with 1,534 units sold, representing a 38.64% market share and a 9% increase from the 1,407 units sold in 2023.

“Medium-duty trucks, such as the popular Isuzu F-Series, cater to logistics, cold chain, and industrial hauling needs, which have seen significant growth in recent years,” said the company.

For heavy-duty trucks and buses, Isuzu is also the top brand, with sales of 245 units at a 33.24% market share. However, this showed a 38.3% drop from the 397 heavy trucks sold in 2023.

To date, Isuzu has 48 dealerships nationwide and a 6,000-square-meter parts warehouse to ensure the availability and fast delivery of replacement parts to all dealerships. — Justine Irish D. Tabile

Foreign currency deposit accounts exempt from estate tax, SC says

REUTERS

THE SUPREME COURT has ruled that foreign currency deposit accounts are exempt from estate tax under Republic Act (RA) No. 6426, or the Foreign Currency Deposit Act of the Philippines.

In a decision written by Associate Justice Ramon Paul L. Hernando, the Court’s First Division upheld the estate of Charles Marvin Romig’s claim for an estate tax refund.

Mr. Romig, an American national residing in the Philippines, passed away in 2011, leaving behind his sole heir, Maricel Narciso Romig.

She transferred ownership of his assets, including a dollar deposit account with HSBC, through an Affidavit of Self-Adjudication.

Initially, Ms. Romig excluded the dollar deposit account from the estate tax computation but later paid an additional P4.56 million. She sought a refund, arguing that foreign currency deposits should be exempt from estate tax under RA 6426.

The Commission on Internal Revenue (CIR) rejected her claim, asserting that the 1997 National Internal Revenue Code (NIRC) had removed the tax exemption for foreign currency deposits.

However, the Court of Tax Appeals ruled in favor of Ms. Romig.

The High Court affirmed the lower court’s decision, saying that the NIRC, as a general tax law, did not explicitly repeal the specific tax exemption provided by RA 6426. The Court clarified that a general law cannot override a special law without a clear and express repeal provision.

RA 6426, enacted in 1974, was specifically designed to encourage foreign investments and deposits by exempting foreign currency accounts from all taxes. — Chloe Mari A. Hufana

Surpassing expectations

VECTEEZY

POLITICIANS don’t follow the principle of managing expectations. Either they overpromise what they can deliver or simply bank on their popularity and not make promises at all. (I’ll know what to do when I get elected.)

As soon as elected, and while waiting to be sworn in, the erstwhile candidate starts to pull back on what he can achieve. (First, I’ll check where the washroom is located.) Politicians, it’s presumed even by the electorate, make all sorts of promises that they are expected to forget right after their oath-taking. There are the usual excuses, like the intransigence of the opposition, even if all branches of government are under a single leader’s control. (Are feuds and split-ups on the horizon?)

Making promises and setting expectations are a different ballgame in the corporate setting. Goals are meant to be met, or even surpassed by a process called “sandbagging.” Annual targets are intentionally set to lower expectations.

The term “sandbagging” is an approach that comes from the game of poker. It requires the one holding a strong hand to put in a low bet to encourage other players waiting for better cards to still stay in the game and help sweeten the pot. A big bet will just scare the other players away and signal a winning hand.

The corporate context of setting modest goals is understood very early in the executive’s career.

The first part of any sandbagging process is to present the challenging state of an industry and maybe even the economy in general. This dire description of external factors like increasing competition, a changing business model, price wars, heavier government regulations and weak purchasing power sets the stage for lowering expectations. The challenges are supported by selective statistics.

Can such a strategy of highlighting difficulties backfire? Can a readiness to start a state of despair result in an out-of-control situation?

If there is light at the end of the tunnel, it is ignored — maybe, it’s an oncoming train? The dire warnings can turn into self-fulfilling prophecies. The crisis described can be so daunting as to discourage any further investment in the company. (Maybe we need another leader who can do a better job?)

A gloom-and-doom scenario being repeated every time an executive report is submitted to the board can be undermined if the other players in the industry are coping. The story of Chicken Little declaring that the sky is falling when an acorn falls on her head is a cautionary tale of spreading panic based on wrong assumptions.

Aside from external factors, some other difficulties can be cited. These include a high turnover of personnel, uncompetitive salaries, the need to upgrade the automation process and a higher capital expenditure budget. The sandbagging process requires a litany of excuses.

Why is management allowed to set its own goals, in the first place? The school of participative management tries to empower those directly involved to manage the whole business process.

The “bottom-up” approach in planning and budgeting has made the method of setting goals a democratic undertaking. Participative management as a principle opens the doors to self-imposed targets that allow expectations to be managed. Such a goal-setting process is even rewarded with incentives based on meeting or surpassing objectives.

How can the board and the CEO mitigate this sandbagging approach?

The risk of targets being managed from below has shifted the goal-setting process to move closer to a “top-down” approach. The targets of increasing market share, improving profit margins, introducing culture change (less whining) and even a major reorganization can also be mandated from the top. The goal posts are set in advance — management needs to improve its game. (Fix it or exit.)

Downplaying expectations can be a risky game too.

What could have been worse for the whole business climate than the recently survived pandemic with its shutdown of businesses and the lockdown of households? There was no need to artificially dampen expectations and move the goalposts closer. And yet there are survivors of that unexpected environment.

Home deliveries, online shopping and payments, Zoom meetings, work-from-home options and other adaptive strategies saved the day. Prophets of doom were proved wrong even when survival seemed the only possibility left.

Even in life, getting through the day is sometimes the only goal to be pursued — and surpassed.

 

Tony Samson is chairman and CEO of TOUCH xda

ar.samson@yahoo.com

Philippines steadies in Labor Resilience Index

The Philippines kept its 62nd place out of 118 countries in the latest Global Labor Resilience Index (GLRI) by public policy advisory firm Whiteshield. The index assesses countries’ resilience in their labor markets and provides policy guidance on enhancing it. With an overall labor resilience score of 45.13 (out of a possible 100), the country performed below the East Asia & Pacific regional score of 55.94.

Philippines steadies in Labor Resilience Index

PHL shares may rebound on key economic data

REUTERS

PHILIPPINE SHARES may rebound on Thursday on expectations that economic growth picked up in the fourth quarter of 2024.

On Tuesday, the Philippine Stock Exchange index (PSEi) fell by 0.7% or 43.41 points to close at 6,153.47, while the broader all shares index dropped by 0.44% or 16.33 points to end 3,623.52.

This was the PSEi’s worst finish in over 14 months or since it closed at 6,110.88 on Nov. 14, 2023. The main index is approaching bear territory as it is now down by 19% from its latest intraday high of 7,604.61 recorded on Oct. 7, 2024.

Philippine financial markets were closed on Jan. 29 (Wednesday) for the Lunar New Year holiday.

Analysts said Philippine stocks could recover when trading resumes on Thursday, although cautiousness could persist.

“We could see a possible upward correction. Philippine gross domestic product (GDP) growth for the fourth quarter of 2024 is expected to slightly pick up from 5.2% in the third quarter and would be an important catalyst for the local stock market,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The recovery on Wall Street following a tech-led selloff could also support the local stock market, he said.

Technology stocks led gains in Asia-Pacific markets on Wednesday, tracking advances on Wall Street overnight as investor angst ebbed over the emergence of a low-cost Chinese artificial intelligence model that some see rivaling US dominance of the industry, Reuters reported.

“The market will languish in bearish mode due to jitters over GDP data disappointment,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message.

The Philippine Statistics Authority will release fourth quarter and full-year 2024 GDP data on Jan. 30 (Thursday).

A BusinessWorld poll of 18 economists and analysts yielded a median estimate of 5.8% for fourth-quarter GDP growth, faster than 5.2% in the third quarter and matching the 5.8% expansion in the same quarter in 2023.

The poll also yielded a median growth forecast of 5.7% for full-year 2024, below the government’s revised 6-6.5% goal. Still, this would be faster than the 5.5% economic expansion logged in 2023.

Philippine GDP growth averaged 5.8% in the first nine months of 2024.

Mr. Ricafort added that the market will also assess the US Federal Reserve’s policy statement due overnight, as this could provide hints on their future policy path. He placed the PSEi’s support at 6,000 and resistance at 6,500-6,600.

The Fed was widely expected to leave its benchmark interest rate unchanged at the 4.25%-4.50% range at its Jan. 28-29 review amid lingering inflation risks, especially with US Donald J. Trump’s tariff threats.

The US central bank has cut rates by 100 basis points since it began its easing cycle in September. — R.M.D. Ochave with Reuters

Exporters more worried about global tensions than US tariffs

By Justine Irish D. Tabile, Reporter

THE EXPORT and logistics industries are taking a wait-and-see stance on US trade policy but consider President Donald J. Trump’s intent to dial down the threat of war on various fronts as more significant than his tariff threats.

Philippine Exporters Confederation, Inc. (Philexport) President Sergio Ortiz-Luis, Jr. said that the Export Development Council has yet to meet to recalibrate of the Philippine Export Development Plan (PEDP).

“I do not think there’s an intention to have a meeting just to recalibrate. We are waiting for more input and see how it will turn out,” Mr. Ortiz-Luis said in a chance interview.

“My hope is that… we can get back to normal in our relationship with our neighbors, especially China,” he added.

He said Mr. Trump’s statements expressing his intent to avoid war or halt ongoing ones will help ease tensions in Asia.

“As he was saying before the election, he will try to end the war in Ukraine, and he will try to prevent war with China; that will be a reverse of what we have been experiencing, and that would be a good sign,” he said.

He said that if conflict with China is averted, Philippine investment, trade, and tourism are set to benefit.

“One of the reasons why we are lagging in investment is because we are perceived to be the first to fall victim if there is a war in this part of the world. That’s why our neighbors are watching us,” he said.

“It would be good for trade because we lost trade with China in 2023. We hope to recover that. Our tourism also fell; it’s growing, but not as fast as our neighbors because tourism from China has not recovered,” he added.

He said exporters are more concerned about the geopolitical picture than tariffs due to a perception that Mr. Trump will not treat the Philippines too roughly.

“I don’t think it can be that substantial — that it will affect us worse than what geopolitics is doing to us. And besides, I don’t think Trump will target the Philippines. I think he is more friendly with the Philippines,” he said.

Rosemarie Rafael, Airspeed chairman and chief executive officer, said the logistics industry is waiting to see where the tariffs will be imposed.

“If he says that I’m going to impose this much on this country, then of course the competitiveness of that country will be affected,” Ms. Rafael said.

“That’s why we will have to find out which countries are going to be affected. Those countries probably will not be exporting to America, but it will shift to other countries,” she added.

“The thing that I think is being prioritized by our government is to work on bilateral agreements and other free trade agreements,” she said.

OUTLOOK
According to Mr. Ortiz-Luis, Philexport is expecting exports to hit the Philippine Development Plan (PDP) targets but miss out again on the targets set in the PEDP this year.

“We are already behind the PEDP targets. So what is more realistic is the targets set by the PDP,” he said.

Last year, Philexport said Philippine exports of goods and services have the potential to exceed the P107 billion set for 2024 by the PEDP.

The Philippine Statistics Authority issued a preliminary estimate for merchandise exports of $73.21 billion in 2024.

The Bangko Sentral ng Pilipinas issued its own preliminary estimate of $37.43 billion in the first nine months of 2024, up 6.5% from a year earlier.

The PDP projects merchandise exports of $61.58 billion, while services exports are expected to hit $45.42 billion.

For 2025, the PDP projects exports of $113.42 billion this year — $65.27 billion in merchandise exports and $48.15 billion in services exports.

The PEDP target in 2025 is for merchandise and goods exports of $163.6 billion, 44.23% higher than the target set in the PDP.

In logistics, Ms. Rafael does not expect results to exceed pre-pandemic levels.

“It’s not going to be the same as pre-pandemic. But I believe that there are opportunities that we can tap in different areas. So the key here is to be really identify what the areas are,” she said.

“For 2025, I believe that there’s going to be movement but maybe not really that much in the first to second quarter. But there will be movement; there will be growth,” she added.

Mining permit process to be streamlined — DENR

NICKELASIA.COM

THE Department of Environment and Natural Resources (DENR) said it will streamline the process for obtaining mining exploration permits, mineral agreements, and financial or technical assistance agreements (FTAA).

Draft Administrative Order (AO) is set to amend AO No. 2010-21 and will require reduced evaluation and acceptance periods for exploration permits, mineral agreement applications and FTAAs, or allow parallel processing alongside other requirements and certifications.

The DENR has said it would adopt parallel processing of mining permits instead of serial approvals.

The draft AO also provides for the renewal of all exploration permits of up to six years, instead of four years for non-metallic mineral exploration and six years for metallic mineral exploration.

It added that applications for exploration permits must come with community development programs certified by the Mines and Geosciences Bureau.

The DENR added that the endorsement of the National Commission on Indigenous Peoples for mineral agreement applications will now be processed in parallel with other requirements.

Additionally, FTAA negotiations will now be conducted by the Environment Secretary, taking into account the contributions to economic growth, as well as to community and local government development programs, and local scientific and technical resources.

FTAA negotiations were previously conducted by a committee. — Adrian H. Halili

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