Ice cream brand Ben & Jerry’s — COURTESY OF BEN & JERRY’S WEB
NEW YORK — Ben & Jerry’s ratcheted up its censorship lawsuit against Unilever on Friday, accusing its parent company of suppressing a social policy statement the US ice cream maker wanted to release because it mentioned President Donald Trump.
The allegation came in an amended complaint filed in Manhattan federal court, where Ben & Jerry’s in November accused Unilever of silencing its attempts to express support for Palestinian refugees and end military aid to Israel, and threatening to dismantle its independent board.
Ben & Jerry’s wants a court order freeing the board to continue oversight of its social mission, and requiring Unilever to honor its commitment to make $25 million of payments to groups chosen by the ice cream company.
Unilever and Ben & Jerry’s did not immediately respond to requests for comment.
Both companies have been publicly at odds since 2021 when Ben & Jerry’s decided to stop selling Cherry Garcia, Chubby Hubby and other ice cream flavors in the Israeli-occupied West Bank because it was inconsistent with the company’s values.
That led some investors to divest Unilever shares, and Ben & Jerry’s to sue its parent for selling its Israeli business to a local licensee.
A settlement in 2022 required Unilever to respect Ben & Jerry’s independent board and social mission, as well as make the $25 million of payments.
London-based Unilever since then announced plans to spin out its ice cream business, including Ben & Jerry’s, to simplify its product portfolio and cut costs. The lawsuit, however, could complicate those plans.
“It doesn’t help it, because anytime you have a cloud over it, it makes it harder to either sell it or spin it out. It affects folks’ interpretation of its value,” said Charles Elson, a retired University of Delaware law professor and a corporate governance expert.
In the amended complaint, Ben & Jerry’s said its management and board, with input from Unilever’s global head of litigation, worked after Trump’s election on a post to be released on Inauguration Day, discussing hot-button issues such as abortion, climate change, minimum wages and universal healthcare.
But on Jan. 18, two days before Trump’s inauguration, Unilever ice cream chief Peter ter Kulve “unilaterally barred Ben & Jerry’s from issuing the post because it specifically mentioned ‘Donald Trump,’” the complaint said.
Ben & Jerry’s said ter Kulve appeared to base his decision on intuition, while ignoring the company’s history of challenging the Trump administration.
It also said ter Kulve soon held a town hall meeting where he touted how Unilever board member and activist investor Nelson Peltz, a Trump supporter, had introduced the president to Elon Musk, the Tesla TSLA.O founder and close Trump adviser.
The complaint said that according to ter Kulve, “despite four decades of progressive social activism—and years of challenging the Trump administration’s policies specifically—criticizing Trump was now too taboo for the brand synonymous with ‘Peace, Love, and Ice Cream.’”
Many companies in retail, banking and other sectors have curtailed support this month for programs whose perceived social impact has drawn opposition from Trump and his supporters.
RESISTANCE TO PAYMENTS Ben & Jerry’s was founded by Ben Cohen and Jerry Greenfield in a renovated gas station in 1978, and kept its socially conscious mission after Unilever bought it in 2000.
According to the amended complaint, Ben & Jerry’s planned to direct $5 million from Unilever to human rights groups, and $20 million over 10 years to support Palestinian almond farmers and a fair trade almond supplier it had long used.
It said Unilever opposed the $5 million of payments because it believed they would support “Palestinian human rights,” and has not made the second $2.5 million installment.
Ben & Jerry’s also said ter Kulve resisted the $20 million payment because he disliked the 2022 settlement and had not heard of the almond supplier.
Unilever’s dozens of other products include Dove soap, Hellmann’s mayonnaise, Knorr bouillon cubes, Surf detergent and Vaseline petroleum jelly. — Reuters
Primeworld Land Holdings, Inc, as one of the country’s premier real-estate companies, has once again marked a significant milestone as the firm celebrated the groundbreaking ceremony for its latest housing development in Barangay Anupul, Bamban, Tarlac on Jan. 21.
This new development signifies Primeworld Land’s ambitious entry into Tarlac, a highly strategic and rapidly growing location. Just 20 minutes from the emerging New Clark City and Clark International Airport, this new development offers unparalleled accessibility and potential. Designed to meet the standards of PD 957 (Medium Cost Housing), it promises an exceptional blend of convenience, affordability, and quality—making it the ideal choice for discerning homebuyers.
The Bamban housing project will be a gated subdivision with a proposed development area for the first phase spanning 48,298 sqm with more than 400 houses, and will offer a vibrant and secure community complete with modern amenities. Planned features include a clubhouse, parks and playgrounds, a basketball court, a swimming pool, and round-the-clock security. Additionally, two-story housing options such as townhouses and duplexes are in the development stages, providing diverse choices tailored to meet the needs of singles and growing families alike. This development provides a much-needed housing option in a highly developed area with a promising future.
1 of 2
The momentous occasion was attended by key figures within the company and its partners, including CEO Sherwin Uy, Business Development Lead Celine Co, Engineering Head Er. Manny Manuel, Greater Manila Sales and Marketing Head Charry Policarpio, the Greater Manila Sales and Marketing and Engineering Teams, the North Luzon Team, esteemed sales partners and brokers, local government representatives, and other valued stakeholders.
1 of 2
To mark a positive beginning, a mass was held, and the property was blessed by Rev. Fr. Louis Mon during the event. Additionally, a brief plan for the development was shared among the attendees, providing an exciting preview of what’s to come.
Primeworld Land remains optimistic that this project will fulfill the aspirations of an underserved segment of homebuyers.
“This development is a testament to Primeworld’s commitment to delivering quality homes in prime locations. With its proximity to Metro Manila and New Clark City, we are confident this community will meet the evolving needs of Filipino families,” Mr. Uy said.
Similarly, Ms. Co emphasized the strategic importance of this new venture.
“Our entry into Bamban, Tarlac, signals our readiness to expand our reach and provide accessible housing solutions in key growth areas across the country,” she said.
1 of 3
The project’s launch is expected in the coming months, and Primeworld Land is excited to open the doors to this promising new community. With its convenient location, modern amenities, and focus on affordability, the development is set to redefine the housing landscape in Tarlac and beyond.
To learn more about Primeworld Land and its family-oriented housing communities in Metro Manila Bulacan, Quirino Province, Nueva Vizcaya, Isabela, Cebu, Butuan City and General Santos City, visit www.primeworldland.com.
Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.
Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.
MANILA, Jan 24 (Reuters) – The deployment of the U.S. military’s Typhon missile launchers in the Philippines was in line with Washington’s longstanding defence ties with the country, the Philippine armed forces said on Friday.
“The primary objective of this deployment is to strengthen Philippine military readiness, improve our familiarization and interoperability with advanced weapon systems, and support regional security,” armed forces spokesperson Francel Margareth Padilla said in a statement.
Her remarks came after a Reuters report that the U.S. military has moved the launchers, which have mid-range capability (MRC), to another location in the Philippines.
The weapon’s presence on Philippine territory drew sharp rebukes from China when it was first deployed in April 2024 during military exercises. Beijing accused the Philippines on Thursday of creating tension and confrontation in the region, urging it to “correct its wrong practices”.
Treaty allies the United States and the Philippines “coordinate closely on all aspects of the MRC deployment, including its positioning”, Ms. Padilla said.
The Typhon launchers can fire multi-purpose missiles up to thousands of kilometers such as Tomahawk cruise missiles, capable of hitting targets in both China and Russia from the Philippines. The SM-6 missiles it also carries can strike air or sea targets more than 200 km (165 miles) away.
“These arrangements reflect shared operational considerations and mutual consultations between our two nations,” Ms. Padilla said. – Reuters
The Philippines’ trade-in-goods deficit widened in 2024, the largest trade gap in over two years as imports picked up while exports continued to decline, the Philippine Statistics Authority (PSA) reported on Friday.
Preliminary data from the PSA showed the country’s full-year trade balance — the difference between the values of exports and imports — grew by 3.1% year on year to $54.21-billion deficit in 2024 from the $52.59-billion gap a year earlier.
The latest figures marked the lowest trade gap since the $57.65-billion deficit in 2022.
Merchandise exports in 2024 declined by 0.5% to $73.21 billion, below the 4% growth projection set by the Development Budget and Coordination Committee (DBCC) for 2024.
A year earlier, exports fell by 7.5%.
Meanwhile, imports rose by 1% year on year to $127.43 billion in 2024, picking up from the 8% contraction in 2023. Imports growth missed the DBCC’s 2% growth target.
In December, the country’s trade-in-goods deficit narrowed to $4.14 billion from the $4.85 billion deficit in November.
This was the smallest trade gap in nine months or since the $3.35 billion deficit in March 2024.
Merchandise exports for the month fell by 2.2% to $5.66 billion, slower than the 8.6% contraction in November.
By value, export haul in December was the lowest in six months or since the $5.57 billion in June 2024.
Likewise, imports contracted by 1.7% to $9.79 billion, slower than the 4.1% drop a month earlier.
Import value was the lowest in nine months or since $9.57 billion in March 2024.
“For the last few years, both exports and imports were quite weak and hardly drivers of economic growth,” said Diwa C. Guinigundo, country analyst at GlobalSource Partners.
Mr. Guinigundo added that on a net basis, external trade contributes minimal impact on the economy.
“Weak exports are overshadowed by higher imports even as they have been quite sluggish recently, [while] modest imports are also indicative of weak manufacturing and business activities,”Mr. Guinigundo said in a Viber message.
Additionally, he noted that over the last two years, the Philippine economy saw some slowdown, falling behind the lower end of the growth targets.
In 2023, the Philippine economy grew by 5.5%, significantly slower than the 7.6% expansion in 2022.
This was the weakest growth in three years since the 9.5% slump in 2020.
The PSA will be reporting the fourth quarter and full-year gross domestic product on Jan. 30, Thursday.
Manufactured goods, accounting for more than three-fourths of exports, went down by 2.6% to $58.34 billion last year.
Electronic products, making up most manufactured goods and more than half of all exports, slumped by 6.7% to $39.08 billion. Semiconductors also fell by 13.5% to $29.16 billion.
The United States remained the top destination for Philippine-made goods in 2024, with exports valued at $12.12 billion or 16.6% of total export sales.
It was followed by Japan with $10.33 billion (14.1% share), Hong Kong with $9.6 billion (13.1%), China with $9.44 billion (12.9%), and South Korea with $3.57 billion (4.9%).
Imports of capital goods inched down by 0.1% to $35.7 billion.
On the other hand, imports of raw materials and intermediate goods rose by 2% to $46.35 billion.
Imports of consumer goods also climbed by 5.6% to $25.81 billion, while imports of mineral fuels, lubricants and related materials declined by 5.2% to $19.06 billion.
By commodity group, electronic products had the highest import value at $27.37 billion in 2024, up 2.7% from $26.64 billion a year ago.
China was the biggest source of imports for the year with $32.81 billion worth of goods, accounting for 25.8% of the total import bill.
It was followed by Indonesia with $10.55 billion (8.3% share), Japan with $10.07 billion (7.9%), South Korea with $9.63 billion (7.6%) and United States with $8.17 billion (6.4%).
Jesus L. Arranza, chairman of Federation of Philippine Industries, said in a phone call that illicit trade and imports for consumer goods like rice and sugar contributed to the widening of the gap for the year.
He added that the increase in smuggling in the country has led to the decline in domestic manufacturing.
“The president would like to stabilize the price of rice, the price of sugar… There is our desire, also, to bring down prices for the consumers. Because the consumers have already made noise,” he said in a mix of Tagalog and English.
Mr. Arranza also said that the narrowing of the gap in December was due to goods already being delivered during the October-November period, anticipating the end of the season.
Mr. Guinigundo said that while it is good that US tariff increases will not be applied on Philippine exports, they could affect Philippine exports to China, which participates in the Southeast Asian country’s semiconductor market.
“This would require a rethink of Philippine exporters on their market focus,” Mr. Guinigundo said. — Pierce Oel A. Montalvo
MANILA – The Philippines will respond favorably if Interpol is asked by the International Criminal Court to issue arrest warrants related to its probe into the former president’s bloody “war on drugs”, a top official said on Friday.
Thousands of people were killed in ex-President Rodrigo Duterte’s anti-drugs crackdown launched in 2016, many in mysterious circumstances, prompting the ICC to launch an investigation into possible crimes against humanity.
Mr. Duterte and police have denied activists’ allegations of systematic executions and cover-ups and say drug suspects were killed in self defense.
“If the ICC makes a move, and courses the move through the Interpol, and the Interpol makes the request to us for the arrest of delivery of the custody of a person subject to ICC jurisdiction, we will respond favorably or positively to the Interpol request,” said Lucas P. Bersamin, the executive secretary of President Ferdinand Marcos Jr.
He was speaking in a media briefing following remarks by the justice minister in a Reuters interview on Thursday on the extent of the Philippines’ cooperation with the ICC, with which he said talks would start soon.
The “war on drugs” was the key policy plank that swept Duterte to power in 2016 as a maverick, crime-busting mayor, who delivered on promises he made during vitriolic speeches to kill thousands of narcotics dealers.
Mr. Duterte unilaterally withdrew the Philippines from the ICC’s founding treaty in 2019 when it started looking into the killings and the Philippines has until recently refused to cooperate with the ICC investigation.
Mr. Duterte in a legislative hearing late last year urged the ICC to “hurry up” on its probe and defended his anti-drugs campaign.
According to police, 6,200 suspects were killed during anti-drug operations that they say ended in shootouts. But activists say the death toll was far greater, with thousands of drug users also slain. Police deny involvement in those killings. – Reuters
MANILA – The Philippines may have likely missed its growth target last year due to economic disruption from a spate of typhoons in the last three months of 2024, its economic planning minister said on Friday.
Arsenio Balisacan said the country may have difficulty hitting even the low end of its 6% to 6.5% gross domestic product goal.
Mr. Balisacan said farm output last month may have contracted by at least 2% in 2024 due to losses from adverse weather during the year, but inflation is expected to remain within the 2% to 4% target this year.
GDP growth slowed to 5.2% in the third quarter, its weakest in more than a year, as typhoons disrupted government spending and dampened farm output during the period. Growth in the first nine months of 2024 was 5.8%.
The Philippine statistics agency will release growth figures on Jan. 30. – Reuters
MANILA – The Philippines raised $3.29 billion from the sale of U.S. dollar and euro bonds, including sustainability-focused offerings, to help finance its budget, its treasury bureau said on Friday.
The Philippines, among Asia’s most active issuers of sovereign debt, raised $2.25 billion from the sale of 10-year bonds and 25-year sustainability bonds, and 1 billion euros ($1.04 billion) from the sale of a seven-year sustainability bond, National Treasurer Sharon Almanza said in a phone message.
Fixed-income news service IFR reported on Friday that $1.25 billion of 10-year bonds were sold at 90 basis points above comparable U.S. Treasury bonds, reflecting strong investor demand, while the $1 billion 25-year sustainability bond was priced at 101.1 basis points over the same benchmark.
The euro tranche was sold at 125 basis points above the mid-swaps rate.
On Thursday, the Bureau of the Treasury said the proceeds would be used for general budget financing, with the two sustainability tranches also used to refinance assets in line with the Philippines’ sustainable finance framework.
Citigroup, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley, Standard Chartered and UBS were joint lead managers and joint bookrunners for the transaction, the bureau said. – Reuters
A TikTok logo is displayed on a smartphone in this illustration taken Jan. 6, 2020. — REUTERS
DAVOS, Switzerland – U.S. businessman Frank McCourt is open to teaming up with other buyers on a bid to take over the U.S. operations of TikTok as long as he can maintain control of the asset, he told Reuters at the Davos event on Thursday.
The billionaire declined to share details on his sources of financing, but said private equity firms and family offices have reached out to provide options.
“Capital is not the issue here. The issue here is waiting for (TikTok parent) ByteDance, or the Chinese government to make a decision about the future of U.S. TikTok,” said Mr. McCourt, who spoke on the sidelines of the World Economic Forum in Davos, Switzerland.
Mr. Trump also said this week he “would like the United States to have a 50% ownership position in a joint venture” in TikTok, and that he was open to billionaires Elon Musk or Larry Ellison, chairman of Oracle, buying the social media app.
McCourt’s Project Liberty advocacy group submitted a bid to buy the U.S. assets of TikTok in early January with plans to run the app on the group’s technology which aims to let users choose how their data will be used and shared. TikTok has sued to block the U.S. ban but the Supreme Court upheld it in a decision last week.
BIDDERS
The prospect of gaining ownership over one of the world’s most recognized video sharing platforms, or at least its U.S. audience, has drawn an increasingly long list of people and entities ranging from the world of finance, technology and entertainment.
Many in Mr. Trump’s orbit, or with close ties to the president, have been linked with TikTok ever since the U.S. ban became a possibility under the administration of President Joe Biden. Former Treasury Secretary Steven Mnuchin said in March he was building a consortium of investors to bid on TikTok.
Others who have expressed interest range from the CEO of Kingdom Holding, the investment firm of Saudi Arabia’s Prince Alwaleed Bin Talal which was previously a large investor in what was then called Twitter, to a consortium of U.S. investors including Jimmy Donaldson, better known by his online persona “MrBeast.”
But what they are actually competing to buy remains a mystery, and that is before potential bidders start to answer questions around how they will finance a deal.
Existing investors in TikTok have shown support by expressing interest to roll over partial or all stakes in a deal, according to McCourt, which potentially reduces the capital needed to pull off the purchase that could cost $20 billion without the inclusion of TikTok’s algorithm.
SUPPORT
In a meeting with the U.S. House of Representatives’ select committee on China earlier this week, McCourt and his co-bidder Kevin O’Leary received assurances that lawmakers on both sides of the U.S. political aisle are committed to ensuring a qualified divestiture.
“I came away with a very clear impression that the (U.S.) Congress was quite unified on enforcing the legislation and causing either a ban or sale of U.S. TikTok,” said Mr. McCourt.
To Mr. McCourt, who said he has never used TikTok, the most appealing assets of the app are the users, data and the brand. His bid for TikTok does not include buying the algorithm for TikTok’s recommendation system, which is at the heart of the app’s popularity.
He wants to move TikTok’s 170 million U.S. users to his own Project Liberty platform with digital infrastructure in the U.S., and expects that the migration could be completed within a year if a deal happens.
Mr. McCourt said he was flexible on financial arrangements of ownership as long as he can maintain control and move TikTok users to digital infrastructure developed by Project Liberty.
“This is not just about who will pay the most money,” he said. “This is about who can meet the very strict criteria laid out in the legislation and reaffirmed by the Supreme Court.” – Reuters
TORONTO – TD Bank said on Thursday Chief Global Anti-Money Laundering Officer Herbert Mazariegos is stepping down immediately, as the bank takes remediation actions after it was fined by U.S. regulators for compliance failures.
Mr. Mazariegos joined TD in November 2023 from Bank of Montreal, where he served as the chief anti-money laundering officer for over four years. He was hired as part of TD’s push to revamp its risk and compliance team.
Mr. Mazariegos, hired while outgoing CEO Bharat Masrani was in charge, will be replaced by Jacqueline Sanjuas, the head of U.S. financial crime risk management at TD, the bank said.
Toronto-based AML industry expert Sean Parker said TD cushioned the blow by hiring Sanjuas, who joined the bank in January 2024 and comes with two decades of experience in compliance and risk management.
Stephen Joyce, vice president of financial crime risk management transformation delivery and enablement, will take the role of interim head of financial crime risk management for TD’s Canadian and international operations, excluding the U.S.
Mr. Joyce will report to Sanjuas.
“I am confident that these changes will position Financial Crime Risk Management for success,” Chief Risk Officer Ajai Bambawale said in a memo to staff on Thursday, thanking Mazariegos for his “contributions … during a challenging time.”
Mr. Bambawale said in the memo Mazariegos’ departure was based on mutual agreement.
TD faces an asset cap and a $3-billion penalty by U.S. regulators following a probe by U.S. agencies into the lender’s anti-money laundering program that resulted in a rare quarterly loss and forced it to suspend its forecast.
The lender ran into problems with U.S. regulators for failures in its risk and compliance program that provided ground for a host of illicit activity, from fentanyl and narcotics trafficking to terrorist financing.
TD said last week that Masrani, who has taken full responsibility for the anti-money laundering failures, is stepping down in February, more than two months sooner than the previously planned date for his retirement. – Reuters
U.S. President Donald Trump on Thursday ordered the creation of a cryptocurrency working group tasked with proposing new digital asset regulations and exploring the creation of a national cryptocurrency stockpile, making good on his promise to quickly overhaul U.S. crypto policy.
The much-anticipated action also ordered that banking services for crypto companies be protected, alluding to industry claims that U.S. regulators have directed lenders to cut crypto companies off from banking services – something regulators deny. The order also banned the creation of central bank digital currencies in the U.S. which could compete with existing cryptocurrencies.
On the campaign trail, Mr. Trump courted crypto cash by pledging to be a “crypto president” and promote the adoption of digital assets. That is in stark contrast to former President Joe Biden’s regulators which, in a bid to protect Americans from fraud and money laundering, cracked down on the industry, suing exchanges Coinbase, Binance and dozens more, alleging they were flouting U.S. laws. The companies deny the allegations.
Thursday’s order was cheered by the crypto industry, which had been pushing for the new administration to send a strong signal of support in Mr. Trump’s first few days in office.
“Today’s crypto executive order marks a sea change in U.S. digital asset policy,” said Nathan McCauley, CEO and co-founder of crypto company Anchorage Digital.
“By taking a whole-of-government approach to crypto, the Administration is making a significant first step toward writing clear, consistent rules of the road.”
If implemented by the relevant regulators, Mr. Trump’s order has the potential to push cryptocurrencies into the mainstream, regulatory and crypto experts said. It follows Tuesday’s U.S. Securities and Exchange Commission announcement that it was creating a taskforce to overhaul crypto policy.
Bitcoin hit a fresh record high of $109,071 on Monday amid investor excitement over the new crypto-friendly administration, although it was down to about $103,000 as of late Thursday afternoon.
“Just days into his administration, President Trump is delivering on his promises… to keep the United States a leader in digital assets innovation,” Senator Tim Scott, the Republican chair of the Senate Banking Committee, said in a statement.
The industry has for years argued existing U.S. regulations are inappropriate for cryptocurrencies and have called for Congress and regulators to write new ones clarifying when a crypto token is a security, commodity or falls into another category.
The working group, which will include the Treasury secretary, chairs of the SEC and Commodity Futures Trading Commission, along with other agency heads, is tasked with developing a regulatory framework for digital assets, according to the order. That includes stablecoins, a type of cryptocurrency typically pegged to the U.S. dollar.
The group is also set to “evaluate the potential creation and maintenance of a national digital asset stockpile… potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts.”
The order did not provide further details on how such a stockpile would be set up and analysts and legal experts are divided on whether an act of Congress will be necessary. Some have argued the reserve could be created via the U.S. Treasury’s Exchange Stabilization Fund, which can be used to purchase or sell foreign currencies, and to also hold bitcoin.
In December, Mr. Trump named venture capitalist and former PayPal executive David Sacks as the crypto and artificial intelligence czar. He will chair the group, the order said. – Reuters
SEOUL – North Korea’s Supreme People’s Assembly (SPA) met over two days this week and reported on its achievements during 2024 but state media made no mention of anticipated changes to the constitution that would further cement its hostile policy towards South Korea.
KCNA state news agency did not mention either whether leader Kim Jong Un had attended the sessions, nor did it report any decisions on foreign policy including plans for its dealings with the new U.S. administration.
The assembly swore in the country’s new premier and adopted the state budget for 2025 that will raise government spending to 103.8% of last year, including to accelerate “significant change in the national defense capabilities,” KCNA said.
The report did not provide any details on defense spending plans. The assembly approved a constitutional amendment to rename its supreme court and the top prosecutors’ office, KCNA said.
The SPA session last year amended the constitution to designate South Korea as “a hostile state,” and was expected by officials and experts in the South to adopt further changes that could be followed by aggressive military moves.
In a separate KCNA dispatch, the North reported on the arrest of South Korean President Yoon Suk Yeol and the trial reviewing his impeachment, where he “babbled nonsense to try to justify his madcap actions” to declare martial law. – Reuters
PHL executives weigh in on impacts of emerging challenges for 2025
By Bjorn Biel M. Beltran, Special Features and Content Assistant Editor
The story remains promising for the Philippines’ economic narrative. But there is yet a long road ahead before the country transition into the next chapter of reaching “upper middle-income status”, and 2025 is simply the first step.
National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan is confident that the Philippines would reach the official status this year. Upper middle-income countries are those economies recognized by the World Bank with gross national income per capita — in other words, the average income generated by residents inside the country as well as by Filipinos abroad — ranging between $4,516 and $14,005 for the fiscal year 2025.
Many leaders share his optimism. Frederic C. DyBuncio, SM Investments Corp. (SMIC) president and CEO, said in an interview that there are several encouraging trends that bolster the business community’s hope in the Philippines’ unimpeded growth.
“Business confidence has remained stable despite economic challenges, suggesting strong adaptability in the business sector. Companies have learned to manage foreign exchange and interest rate volatility effectively,” he said.
Jeffrey C. Lim, president of SM Prime Holdings, echoed his sentiments. “We expect the Philippine economy to continue its growth trajectory into 2025. The economic team’s GDP target of over 6.0% is attainable because of moderating inflation, strong domestic demand and robust government spending,” he said.
Building resilience amidst volatility
BW FILE PHOTO
Inflation remains a sticking point. Organizations like the Asian Development Bank maintained their projections on the Philippine economy at 6.2% for 2025, with the expansion expected to be driven by broad-based domestic demand and supported by lower inflation and interest rates. The Bangko Sentral ng Pilipinas predicts inflation this year to be at an average 3.3%.
“If inflation continues to moderate, we expect an improvement in the interest rate environment, which could benefit both businesses and consumers. Any further moderation in inflation is likely to restore consumer confidence, creating more growth opportunities in consumer-focused sectors,” Mr. DyBuncio added.
“For me, there are two things I look forward to this 2025. The first is a more stabilized inflation rate. Prices of goods have drastically increased since 2022 and continued to rise until 2024. But, hopefully, prices are now stable and spending power has slightly adjusted as well. I look forward to this so that there will be less shocks to the market and the economy can move as predicted,” Pammy Olivares-Vital, president and CEO of Ovialand, said in an interview.
“Next would definitely be political — globally the return of President Trump and locally our own local elections. This activity always triggers a boost in spending, so hopefully this will spur economic activity.”
Many global organizations like the International Monetary Fund have expressed concerns regarding the potential impact of President Donald J. Trump’s return to office on the global economy, as his proposed economic policies — which include significant tax cuts, import tariffs, deregulation, and mass deportations — could aggravate United States’ (US) inflation, disrupt global trade, and lead to labor shortages in certain sectors.
The import tariffs, in particular, could reduce global economic growth of 2.7% in 2025 by 0.3 percentage point, according to the World Bank, if America’s trading partners retaliate with tariffs of their own. This potential slowdown could have a ripple effect on emerging markets like the Philippines, influencing key factors such as foreign exchange stability and trade dynamics.
“Businesses are particularly sensitive to foreign exchange movements, and recent volatility in the peso has impacted import costs significantly. We must also monitor global monetary policy, especially decisions from the Federal Reserve, which could affect peso stability,” SMIC’s Mr. DyBuncio said.
He added that Mr. Trump’s return could bring a mix of opportunities and challenges for the country, with its strategic location and strong economic ties with the US, especially in areas such as trade.
“In terms of risks, protectionist policies could lead to trade tensions, particularly in sectors where the Philippines is dependent on US markets. The Philippines will need to adapt to this evolving political landscape while ensuring it maximizes potential bilateral advantages,” he said.
Ms. Olivares-Vital remains positive. “Regardless of some of his surprising statements, President Trump is a Republican, and his right leaning tendencies are aimed at strengthening their economy. And when the US is strong, I believe, somehow we positively benefit from it as well,” she said.
“The return of Donald Trump to the White House introduces a significant new dimension to global trade and Philippine-US relations,” Mr. Lim of SM Prime said, adding that changes in US policies could present opportunities for the Philippines to diversify its partnerships and strengthen its domestic industries and competitiveness.
“The Philippines has consistently shown resilience and adaptability in navigating changing global dynamics. I think the government will be proactive and strategic in pursuing opportunities for collaboration that enhance relationships while safeguarding our national priorities,” he said.
Bringing the Philippines onto the global stage
At this crucial juncture in the Philippines’ development, the country has the potential to become a key player in global supply chains, especially in the context of escalating trade tensions between the US and China.
The country’s natural geographic advantage places it at the crossroads of major trading routes, providing access to key markets in Asia, the Americas, and Europe, thus making it a natural hub for logistics, manufacturing, and regional trade. That is, if the country plays its cards right.
“The Philippines faces the complex task of maintaining robust trade relationships with both the US and China, its two largest trading partners,” Mr. DyBuncio pointed out. “Key sectors like electronics and manufacturing are particularly vulnerable to disruptions in US-China trade relations due to their dependence on raw materials and components from both countries.”
“Balancing trade relations with the US and China also requires strategic diplomacy and economic foresight from the government. While tensions between these global powers present risks, they also underscore the importance of diversifying markets, fostering domestic capabilities, and ensuring resilience across key sectors.”
He also noted that the Philippine government can ideally take a multifaceted approach to strengthen economic ties with the US, including enhancing bilateral trade agreements to secure favorable terms for Filipino exports and attract US investments, as well as fostering goodwill through people-to-people diplomacy by promoting cultural, educational, and tourism exchanges.
Additionally, he said that the government could address immigration and remittance-related issues by proactively safeguarding the welfare of Filipino workers abroad and ensuring the steady flow of remittances.
BW FILE PHOTO
Mr. Lim added that strengthening economic ties with the US calls for proactive and constructive diplomacy, focusing on shared priorities such as technology, education, and infrastructure development.
“Regarding immigration and remittances, monitoring potential policy changes that could affect Filipino workers and their families is essential. The government can continue to advocate for the welfare of our overseas workforce while exploring opportunities to diversify markets and enhance economic resilience,” Mr. Lim said.
As the Philippines is a primarily consumer-driven economy, keeping the country’s supply chains away from disruption is crucial for maintaining steady growth — a fact that Ms. Olivares-Vital of Ovialand can attest to.
“For me personally, the global political tensions have affected our supply chain,” she admitted.
“Global supply chains have been significantly disrupted by geopolitical tensions and the lasting effects of the pandemic, creating challenges for local businesses such as supply disruptions and rising costs,” Mr. Lim said.
“To mitigate the impact of these geopolitical risks on the Philippine economy, the government can focus on key strategies such as investing in infrastructure to improve logistics efficiency, promoting local manufacturing to reduce reliance on imports, and implementing policies that attract foreign direct investment to bolster local employment, competitiveness and economic resilience.”
Amid such a backdrop, regional cooperation becomes even more critical.
“In an era of rising global trade tensions and geopolitical uncertainties, regional cooperation through organizations like ASEAN and trade frameworks such as the Regional Comprehensive Economic Partnership (RCEP) has become increasingly vital for the Philippines,” Mr. DyBuncio said.
These agreements, he noted, can help the Philippines diversify its trade partners, stabilize exports, and promote economic integration within the region, providing a buffer against external shocks.
“Global supply chain disruptions, driven by geopolitical tensions, trade disputes, and natural disasters, are increasingly affecting local businesses in the Philippines,” he said.
Mr. Lim underscored how crucial regional cooperation was for sustained growth. Engagement through ASEAN and participation in agreements like RCEP provide the Philippines with access to broader markets, diversified trade opportunities, and collective bargaining power. Such collaboration strengthens economic stability and creates avenues for growth amid global uncertainties.
“The government can take the following measures to protect the Philippine economy: encourage localization of supply chains by supporting local industries to produce key components and reduce reliance on imports; invest in technology by enhancing digital infrastructure to improve supply chain tracking and flexibility; and foster trade agreements by building strong trade relationships with regional and international partners to buffer against global disruptions,” Mr. DyBuncio suggested.
The ultimate test of sufficiency
BW FILE PHOTO
Mr. DyBuncio further highlighted how global trade realignments could be a boon for the Philippines, while also posing significant risks.
“To position itself as an attractive investment destination, our country must focus on creating a conducive environment for businesses, leveraging its strategic location, and addressing key areas of improvements that include: improving the business environment by streamlining regulations, reducing red tape, and enhancing the ease of doing business; promoting sustainability by fostering renewable energy investments to attract foreign capital in green industries; and enhancing infrastructure through investments to improve connectivity and logistics, which can enhance overall business efficiency and support growth in both domestic and foreign investments,” he said.
In renewable energy, specifically, the Philippines has the potential to become a global powerhouse. In the 2024 Climatescope Report by BloombergNEF, the country came second behind India as the most attractive emerging market for renewable energy investments — remarkably coming ahead of mainland China. This was a climb from fourth place in 2023 and an impressive leap from 20th place in 2021.
However, growth should not be sought for growth’s sake. The country should not lose sight of what such a potential future really means. Manny V. Pangilinan, who serves as chairman and president of Metro Pacific Investments Corp. alongside his leadership roles in companies like PLDT, Smart, and Meralco, had a more nuanced view of such promising prospects.
“We view [ourselves] in the traditional perspective of delivering goods and services for a profit,” he shared. “That’s what our owners want. That’s what they demand of the stores, managers, and the business. So that’s our starting premise.”
“But beyond that, there is a larger social component dimension to our business — and that is the improvement of lives and the welfare of everybody. The ultimate test of our sufficiency as a business is really how well we have done better for our people, for our customers, and generally the people in the Philippines in terms of the job and the business that we conduct.”
“And we believe in that is what defines us. That defines our group. We have a very heavy responsibility to our people in the way we do our business.”
Mr. Pangilinan commented that Mr. Trump’s policies on reinvesting in fossil fuels like gas and coal reflected the same idea: that leaders should focus on what they believe their people need. He cited the example of what he had seen doing social work, of children being forced to forego their education sell scrap metal because of poverty.
“Sometimes I wonder whether they worry about whether the air is pure and the water is clean. They must worry more about the food on the table and shirts on their back. And whatever else are essential to human existence,” he said.
BW FILE PHOTO
Whether or not the Philippines seeks to become a global leader in renewables, or simply achieve its goal of achieving upper middle-income status this year, growth must serve the purpose of benefitting lives, first and foremost.
Speaking for SMIC, Mr. DyBuncio said, “As we look ahead to 2025, building resilience and managing risks in our sector remains a top priority. Recognizing the potential challenges posed by global economic slowdowns or recessions, we have implemented strategic measures to strengthen our position and ensure sustainability during periods of uncertainty.”
“While uncertainties remain in the global economic landscape, the SM Group’s proactive approach to risk management and resilience building positions us to navigate potential challenges. By focusing on adaptability, operational efficiency, and financial stability, we are confident in our ability to weather downturns while maintaining long-term growth.”
SM Prime’s Mr. Lim agreed, sharing their own visions of the future. “Our diversified portfolio, encompassing malls, residences, hotels and offices, allows us to manage risks associated with sector-specific downturns. We have also invested significantly in climate-adaptive and disaster-resilient infrastructure to reduce our operating costs and mitigate operational risks, while ensuring business continuity.”
“Whether it be the financial institutions managing exposure to the industry or affecting our supply chain, we need to be extra diligent in all our moves,” Ovialand’s Ms. Olivares-Vital concluded.
“When I reflect on all these extreme scenarios, I go back to one thing which is: How do we add value to the market we serve? This is a constant reminder for us to ensure that every peso we spend and every endeavor we take must have the Filipino middle-class homebuyer in mind. When the homebuyers are happy, profitability follows!”
