Cebu Landmasters nears Luzon entry

April 21, 2025 | 12:04 am

LISTED real estate developer Cebu Landmasters, Inc. (CLI) is nearing its entry into the Luzon market after acquiring land for a planned condominium project in Metro Manila.

“We will disclose the specific area in due time; we are looking for a vertical development in Metro Manila,” CLI Chief Operating Officer Jose Franco B. Soberano said during a virtual briefing last week.

Mr. Soberano said CLI is also eyeing a housing development in Cavite.

“(Our Luzon expansion is) a mix of vertical development and horizontal projects. We are going to report the specifics soon as we complete the necessary positioning,” he said.

CLI said earlier that it was eyeing to make its Luzon market debut by 2026. The company allotted P12 billion for the first two Luzon projects.

Despite the ongoing condominium oversupply in Metro Manila, Mr. Soberano said that CLI sees opportunities for its projects, touting the country’s population rise and economic growth.

“We see opportunity. We feel that ready for occupancy units are the challenge. However, we have the opportunity to bring a very competitive pre-selling product that allows a buyer to affordably invest over a five-to six-year horizon and plan for home ownership by that time,” he said.

“The oversupply in Manila is concentrated in specific areas. We expect confidence to improve over the next year, as the country continues to grow not only in population but also in income capacity. We are confident that the market will recover,” he added.

Meanwhile, CLI Chief Financial Officer Beauregard Grant L. Cheng said at the same briefing that the company’s projects in Luzon would fall under the affordable segment.

“We’re not looking to build the next luxury condo in Metro Manila. There are more than enough players to do that,” he said.

For 2024, CLI saw an 8% increase in its attributable net income to P3.01 billion as revenue climbed by 4% to an all-time high of P19.53 billion led by strong demand in the Visayas and Mindanao.

CLI shares were last traded on April 16, improving by 0.40% or one centavo to P2.52 apiece. — Revin Mikhael D. Ochave

Another Supreme Court petition?

April 21, 2025 | 12:03 am

Perhaps at no other time in its history has the Supreme Court (SC) been embroiled in successive related cases that grip the public’s attention and that have profound implications on jurisprudence, governance, institutions, and the economy.

How the administration has debased Universal Health Care (UHC) by taking away Philippine Health Insurance Corp. (PhilHealth) funds, allocating a budget of zero for PhilHealth in the 2025 General Appropriations Act (GAA), and diverting the sin taxes earmarked for PhilHealth has become a central issue in the midterm elections. In the March 2025 Social Weather Stations (SWS) poll, 90% of the voters said they “will vote for a candidate who will advocate for… strengthening of the healthcare system.”

Post-pandemic healthcare becoming a primary issue in the elections is a result of the sustained collective action by concerned organizations and individuals. They exposed and condemned the PhilHealth fund transfer and called it an illegal act. This culminated in citizens’ petitions being filed at the SC to stop the fund transfer. The people have become more informed about the issue upon hearing the oral arguments on the petitions before the SC.

But the issue is not just about PhilHealth or the healthcare system. What caused the funds being taken away from PhilHealth, as well as from the Philippine Development Insurance Corp. (PDIC)? Recall that a special provision in the 2024 GAA gave the Department of Finance (DoF) the authority to identify government-owned and –controlled corporations (GOCCs) with “unused funds” and order these GOCCS to have the “unused funds” remitted to the National Government. The DoF then issued Memorandum Circular No. 003-2024 that directed PhilHealth and PDIC to remit P89.9 billion and P107.23 billion, respectively.

It was the act of Congress to insert a massive amount of corruption-prone, discretionary, and opaque funds for politically partisan projects — essentially pork barrel. Fattening the pork barrel meant a sharp reduction of the budget for the original National Expenditure Program (NEP). And to finance the regular expenditure programs, which became unprogrammed appropriations, the Congress and Executive cleverly but disingenuously raided the funds exclusively belonging to PhilHealth (including the earmark money from sin taxes) and the PDIC.

The SC recently concluded the oral arguments on petitions that question the constitutionality of the special provision in the 2024 GAA together with the DoF Memorandum Circular No. 003-2024 that authorized the transfer of ring-fenced PhilHealth funds to the National Government. Accordingly, the petitioners pray for a favorable SC ruling that will declare the P89.9 billion be returned to PhilHealth. An initial favorable sign was the SC’s issuance of a temporary restraining order on the further transfer of PhilHealth funds. This involved an amount of P29.9 billion, which constituted the last of three tranches.

A concise summary of the oral arguments (from the perspective of the petitioners) together with the insightful interventions of the SC Justices can be found in the BusinessWorld “Yellow Pad” column written by my colleague, Pia Rodrigo: “Concluding the PhilHealth oral arguments,” published on April 14.

But even as the SC justices will start penning the decision on the first set of petitions, the SC will likewise calendar a hearing for new petitions that question the constitutionality of the 2025 GAA. The thrust of the new set of petitions is similar to the first. One issue is the violation of the Universal Health Care Act because of the failure to provide mandatory funding for the national health insurance program. A related issue is the non-compliance with the Sin Tax Law that earmarks to PhilHealth the excise tax revenues from tobacco and sweetened beverages.

Further, the petitioning groups ask the SC to tackle other issues pertaining to the budget or GAA. To wit:

• The unlawful increase in appropriations, going beyond what the President recommended.

• The manipulation and reduction of the Education budget and reallocating funds from education to pork-barrel infrastructure. The effect: a GAA wherein infrastructure replaces education as having the highest budget priority. This undermines the constitutional provision: “The State shall assign the highest budget priority to education….”

• The submission by the Bicameral Conference Committee of a report with blank items on the General Appropriations Bill.

On top of all this, we anticipate another legal question or petition addressed to the SC. This time it will focus on the remittance of PDIC funds amounting to P107.23 billion, even bigger than what PhilHealth was ordered to transfer. PDIC, being a GOCC, is covered by the controversial special provision in the 2024 GAA and the DoF Memorandum Circular.

In fact, the legality or constitutionality of the remittance of PDIC funds to the National Treasury is already covered by the petitions on the transfer of PhilHealth funds. The special provision of the 2024 GAA and DoF’s Memorandum Circular No. 003-2024 are the basis for the sweep of both PhilHealth and PDIC funds.

A central argument of the petitions before the SC is that the GAA and, for that matter, a mere Memorandum Circular cannot amend other laws. The special provision in the 2024 GAA is a rider, which the Philippine Constitution prohibits. A rider provision is one that is not relevant or germane to the main subject of the law. In this case, the transfer of PhilHealth and PDIC funds to the Treasury is not at all germane to the General Appropriations Act. A bill must be about a single subject. The GAA thus cannot amend the laws governing PhilHealth and PDIC.

It is likewise absurd, or bizarre, to have a special provision in the GAA and a DoF Memorandum Circular order the PDIC to remit funds to the Treasury. It is, after all, clear in its Charter that “The Corporation shall declare and remit cash dividends to the National Government.” But the condition is: “For purposes of computing the amount of dividends to be declared and remitted to the National Government, the dividend base shall be the sum of all income, but excluding all assessment income. No other deductions from the dividend bases shall be allowed.” [Underscoring mine.]

In other words, the PDIC shall not remit the assessment income (income from the assessment rates levied on banks).

In this context, since PDIC is allowed to declare dividends to be remitted to the National Government so long as these exclude assessment income, we can only interpret that the special provision in the 2024 GAA and the DoF Memorandum Circular intend to amend the Charter towards expanding the dividend base and including income from assessment rates.

It is therefore important to highlight the issue of the PDIC remittance to the National Government. While the PDIC issue is tied to that of PhilHealth, the PDIC question has its distinctness.

Alex Escucha, my School of Economics classmate and fellow columnist, wrote a two-part “Introspective” column in BusinessWorld about the PDIC case (“Congress puts DoF in a bind and having to dip into PhilHealth and “GOCCs: The case of PDIC,” March 31 and April 4). I quote his key message:

“If the premiums or assessment collections that built up the DIF [Deposit Insurance Fund] were exempt from the computation of dividends to the National Government, how much more the cumulative DIF itself? Common sense dictates that the DIF itself — the accumulated total of all these premiums over the years — will be equally, if not even more, protected/exempt from any dividend computation.”

What then should have been the sound policy? In the example of PhilHealth, the law is clear that any excess of the reserve funds should be used to expand benefits and reduce premiums of direct contributors. In the same vein, any surplus from the PDIC’s DIF should primarily be used to reduce the premiums paid by banks or suspend the collections.

The collective action to challenge the transfer of PDIC funds is admittedly more difficult to undertake, in comparison to the broad movement vis-à-vis the PhilHealth issue. The shareholders and bank executives who have the legal standing to file a petition at the Supreme Court may fear possible retaliation and harassment that the administration is capable of doing. On the other hand, bank depositors are scattered and unorganized. The small depositors do not have a strong incentive to do costly advocacy on an issue that they feel has minuscule benefits for them.

Yet, the PDIC case is a public interest issue. At stake: fiscal stability and financial integrity, which, if gravely undermined, would have immeasurable costs for everyone. It is thus incumbent upon the enlightened citizens to take up the cudgels for the public interest.

Filomeno S. Sta. Ana III coordinates the Action for Economic Reforms.

www.aer.ph

Japan considering soybean, rice concessions in US tariff talks

April 21, 2025 | 12:03 am

TOKYO — Japan is considering increasing its soybean and rice imports as a concession in trade negotiations with the US over President Donald Trump’s sweeping tariffs, the Yomiuri daily reported on Saturday.

With Mr. Trump’s trade offensive roiling markets and stoking recession fears, Japan is seeking to walk back his “reciprocal” tariffs and other duties imposed on Japan, along with dozens of countries.

In their first round of bilateral talks on Wednesday, US negotiators brought up automobiles and rice as areas where they said Tokyo puts up market barriers, and they demanded that Japan import more meat, fish products and potatoes, the newspaper said, without citing sources.

Japan’s Cabinet Office could not immediately be reached for comment.

Those trade barriers are cited in an annual report by the Office of the US Trade Representative.

Japanese media highlighted a White House photo of the 400-page report on the table at the talks in Washington.

Mr. Trump unexpectedly brought Japan’s lead negotiator, Economic Revitalization Minister Ryosei Akazawa, into the Oval Office and touted “big progress” after the talks, although few specifics have been disclosed. Finance Minister Katsunobu Kato is expected to resume the bilateral talks with Treasury Secretary Scott Bessent on the sidelines of global meetings next week in Washington.

Japan has been hit with 24% levies on its exports to the US although these rates have, like most of Mr. Trump’s tariffs, been paused for 90 days. A 10% universal rate remains in place, as does a 25% duty on cars, a mainstay of Japan’s export-reliant economy.

Mr. Akazawa asked the US team to convey their priorities in order of importance, the Yomiuri said.

Mr. Trump claims Japan has a 700% tariff on rice — a figure Japan says is based on outdated international rice prices.

It remains to be seen whether Mr. Trump’s Republican administration would focus on rice, as exports to Japan come from California, a Democratic-leaning state.

Even before Mr. Trump’s tariffs, Japan had been increasing its imports of staple rice in the past year as domestic prices have skyrocketed due to a supply shortage. — Reuters

Treasury bills may fetch steady or lower rates

April 21, 2025 | 12:03 am

RATES of the Treasury bills (T-bills) to be offered this week may move sideways, with ample demand seen for shorter tenors even amid the ongoing public offer of the new 10-year benchmark bonds.

The Bureau of the Treasury (BTr) will auction off P25 billion in T-bills on Monday, or P8 billion each in 91- and 182-day papers and P9 billion in 364-day debt.

The government canceled the April 22 auction of 15-year Treasury bonds (T-bonds) amid its offering of new 10-year fixed rate Treasury notes (FXTN).

The first trader said in a text message that the T-bills on offer on Monday could fetch “steady to lower” yields. “We expect the short end to belly of the curve to have strong support on the lack of supply pressure.”

This comes as the 10-year FXTN offer has attracted “strong demand,” the trader said.

“With this, there will be less pressure for BTr to borrow aggressively next month and gives them time to wait for the market to reflect the recent rate cut.”

The second trader added that the jumbo offering of the new 10-year benchmark bonds caused most secondary market yields to close sideways to lower at the end of trading last week before the trading break.

At the secondary market on Wednesday, the 91- and 182-day T-bills rose by 4.32 basis points (bps) and 1.28 bps week on week to fetch 5.4133% and 5.6308%, respectively. Meanwhile, the 364-day debt fell by 9.63 bps to yield 5.6841%.

The BTr raised an initial P135 billion from the new 10-year fixed-rate Treasury notes it auctioned off last week, more than four times the initial P30-billion offering, as tenders reached P197.3 billion.

The new 10-year bonds fetched a coupon rate of 6.375%, resulting in an average rate of 6.286%. Accepted yields ranged from 6% to 6.4%.

The public offer period for the bonds, targeted towards institutional investors, is scheduled to end on April 24, unless closed earlier.

Meanwhile, the Monetary Board on April 10 cut benchmark interest rates by 25 bps to bring the policy rate to 5.5%, putting its easing cycle back on track after an unexpected pause in February.

The central bank has now reduced borrowing costs by a cumulative 100 bps since it kicked off its rate-cut cycle in August last year.

Last week, the BTr raised P25 billion as planned from the T-bills it auctioned off as total bids reached P74.512 billion or nearly thrice the amount on offer.

Broken down, the Treasury borrowed the programmed P8 billion via the 91-day T-bills as tenders for the tenor reached P13.387 billion. The three-month paper was quoted at an average rate of 5.422%, up by 2.9 bps week on week.

The government likewise made a full P8-billion award of the 182-day securities as bids for the paper amounted to P28.525 billion. The average rate of the six-month T-bill climbed by 1.2 bps to 5.657%.

Lastly, the Treasury raised P9 billion as planned via the 364-day debt papers as demand for the tenor totaled P32.6 billion. The average rate of the one-year T-bill slipped by 0.4 bp to 5.722% from 5.726% previously.

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

Nivea endorser Janine Gutierrez’s ‘lazy girl’ routine

April 21, 2025 | 12:03 am

NIVEA introduced its new brand ambassadors as the summer heat rose at the Nivea Skin Haus, an event held in Antipolo on April 8.

These ambassadors, called the Nivea Circle of Trust, include content creators Bella Madamba, Joselle Alandy, and David Leoy; beauty queens Nicole Cordoves and Ayn Bernos, Drag Race Philippines Season 1 winner Precious Paula Nicole, actor Anton Vinzon, and host Martin Javier.

Rounding out the list is FAMAS award-winning actress Janine Gutierrez, practically showbiz royalty as her two grandmothers are “Superstar” Nora Aunor and “Asia’s Queen of Songs” Pilita Corrales. The actress lost both grandmothers over the past couple of weeks.

These clouds were yet to descend when we got to talk to Ms. Gutierrez during the event. She said that for Holy Week, she was just staying in Manila (as it turned out, her grandmothers’ wakes and funerals were held at Heritage Park during Holy Week), and she shared with us her summer skincare routine.

“I’m super low-maintenance. Lazy girl routine. That’s what works for me,” she said in a group interview. “I just use the Nivea Luminous 630 line,” she said. “It’s two steps in the morning and then two steps at night. That’s it.”

The line contains Thiamidol, which reduces dark spots, and has hyaluronic acid to hydrate and plump up the skin.

Ms. Gutierrez says that she takes care of her skin because, “I really don’t like wearing makeup if I don’t have work. I associate make-up with work,” she said. When she’s not working, “I really just want to go barefaced,” she said. “I feel confident when I see the results. I can face anyone.”

FOCUS ON BRIGHTENING
Nikki Seelen, marketing director for Beiersdorf Philippines pointed out during a presentation that Nivea has been in the Philippines since 1906 — Beiersdorf, its parent company, was founded in 1882.

In the Philippines, she said in an interview that, “Most of the growth and the consumer needs are in brightening,” which would include body lotion, facial care products, and deodorant with skin-brightening ingredients.

She also said that the Nivea products sold here (which are made in Thailand) would have different formulations from those made and sold in Europe. “All of our products are being tested on Asian skin, and our formulas are more lightweight,” she said.

Since the brand is more than 100 years old, how can it ensure that it can keep up with all these new potions and lotions in the market, promising to keep age at bay and keep skin cared for? Ms. Seelen said, “That’s where our expertise comes in. I think we have been building skincare expertise since the early 1900s.

“That is something that is very hard to beat. We know the most about skin.” — JLG

IDC profit rises on lower costs, property value gains

April 21, 2025 | 12:03 am

Verona Green Residences at Gusa — ITALPINAS.COM

LISTED REAL ESTATE company Italpinas Development Corp. (IDC) saw a 102.2% increase in net income for 2024 to P376.8 million from P186.3 million in 2023 on reduced costs and property value gains.

The company’s higher profit came from initiatives to increase gross margin and lower fixed costs such as project management, administrative, and marketing cost and interest expense, IDC said in a statement over the weekend.

“Another significant contribution here is the gain on appraisal of the company’s investment properties recognized in 2024, which reflects the rise in their fair market value during the year,” IDC said.

Sales rose by 100.6% to P600.26 million from P299.11 million in 2023.

The sales growth was led by ongoing projects including Primavera City Verde in Cagayan De Oro and Miramonti 1 in Sto. Tomas Batangas.

“From inception, IDC has focused on being an early mover in emerging locations, foreseeing the current shift in real estate focus from Metro Manila to provinces, and this has paid off with the significant generated sales from these flagship projects during the year,” IDC said.

Meanwhile, IDC said it has plans to expand into new locations nationwide, including Palawan, Boracay, Bataan, and Bukidnon.

“These new flagship projects aim to deliver IDC’s signature eco-friendly, sustainable, and innovative developments, further cementing its position as a leader in the real estate market,” IDC said.

Earlier this month, IDC exited the power sector after selling its 25% stake in Constellation Energy Corp., equivalent to 5 million shares, for P6.5 million.

Constellation Energy has renewable energy projects in Negros, Mindoro, and Nueva Ecija.

“The sale of our minority stake in Constellation Energy allows IDC to fully focus on our core real estate business. It streamlines and simplifies financial reporting, and eliminates exposure to non-core performance,” the real estate company said.

IDC shares were last traded on April 16, improving by 5.31% or six centavos to P1.19 apiece. — Revin Mikhael D. Ochave

Not just another plug bearer

April 21, 2025 | 12:03 am

VELO_PAGE1_image1 — The fourth-generation BMW X3 is now available here solely with a plug-in hybrid electric powertrain. It is priced at P4.79 million. — PHOTO BY KAP MACEDA AGUILA

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Feature-packed all-new BMW X3 arrives in PHEV form

OFFER MORE for more or, according to SMC Asia Car Distributors Corp. President Spencer Yu, give them the “power of choice.” The continued lineup maturation of the official importer and distributor of BMW in the Philippines continues with the launch of the fourth-generation BMW X3, which now comes for the first time as a plug-in hybrid electric vehicle.

With a rather lengthy appellation, the BMW X3 30e xDrive M Sport takes its place as the sole representative of what Mr. Yu said is the best-selling model of BMW here — with the previous generation moving “close to 1,200 units” during its entire run here.

Primarily powering the X3 is BMW’s “award-winning” B48 2.0-liter four-cylinder gas engine, mated with an electric motor. Together, the two realize a system output of 299hp. According to a release, through the latest-generation BMW eDrive technology and adaptive recuperation, the SUV can muster a WLTP-certified 90 kilometers on pure electric mode. A so-called Combined Charging Unit enables AC charging at 11kW as standard.

In his speech during the model’s unveiling last week, San Miguel Corp.’s Jacob Ang said, “Earlier this year, in January, we introduced the BMW X5 xDrive 50e. It’s a powerful plug-in hybrid that gave us a clearer picture of what an electrified luxury SUV can be: efficient, capable, and every bit a BMW. Today, we’re building on that momentum — this time with something more compact, more agile, but just as thoughtfully engineered.”

For his part, Mr. Yu shared, “With the previous generation (G01, 2017), we were able to deliver close to 1,200 units in its entire lifetime, and we’re talking of a premium car worth over P4 million.” He added, “This is a testament to the BMW X3’s enduring appeal and a strong connection it has forged with the Filipino consumers. The success of the G01, even the F25 (second generation, 2010), and the E83 (first generation, 2003) before that have paved the way for a new chapter, and we’re very confident that the G45 X3 will continue the legacy… (It has) a very good product proposition (that is) very competitive with what’s out there.”

The front fascia is marked by, of course, by the signature kidney grille of the brand — this time curiously rendered with vertical and diagonal bars. Around two-thirds of the grille is closed off, with the lower third open to let in cooling air. As in the previously launched X5, the X3 gets the so-called BMW Iconic Glow contour lighting, which forms a continuous illuminated halo around the grille elements. Meanwhile, BMW reports that the daytime driving lights, side lights, and turn signal indicators in the LED headlights “are now all produced by L-shaped, overlapping light sources.”

Viewed from the side, the BMW X3 gets moderately sculpted sheet metal lending a decidedly sportier, bolder look. Fenders are large but not to the point of overexaggeration. A deep, dynamic indent on the lower door extends to the side skirts, while a roofline also reaches into the rear end for a flowing silhouette.

The hindquarters are even more sculpted and angular to give off a feel of added dynamism. Exhaust tailpipes are “integrated out of sight in the rear apron,” with the T-shaped graphic getting a new take. The “satinated” horizontal bar with integral turn signal indicators complete the consistent look.

Inside, the all-new BMW X3 gets a sundry of the brand’s accoutrements such as the BMW Widescreen Display, BMW Interaction Bar, and a new-look gear selector lever — all in keeping with a “driver-focused” ethos. Other highlights include light elements in contrasting colors in the center console and door trims. As for interior load capacity and versatility, the X3’s load space can be increased from 460 liters to a maximum of 1,600 liters.

“The X3 (has) always been known for its balance — versatile enough for weekend getaways, refined enough for the everyday commute,” underscored Mr. Ang. “With the 30e, we’re taking that experience and moving it forward.”

This writer asked Mr. Yu in a subsequent interview with members of the media about the decision to offer PHEVs, especially since BMW is already known here for offering a number of full-electric options. “We want to be able to give our consumers the power of choice,” he began. “At the end of the day, we offer them the products, and they choose which ones they like. If they want BEVs, we have our BEV lineup; if they want ICE products, we still keep ICE vehicles in our portfolio; and now we have plug-in hybrids. Whatever powertrain you like, depending on your lifestyle, and what you believe in; how you drive and use the car.”

The X3 PHEV’s availability here also stems from encouraging reception to the previously launched X5 — also coming solely in PHEV guise. “Reception has been great,” he reported. “We wouldn’t be continuing with a plug-in hybrid if the format wasn’t accepted to begin with. I think it’s a very good compromise for people who want to shift to electrified motoring but are not yet ready to take the full battery electric vehicle experience. Eventually, that’s where they may go, but for now, a step up from ICE vehicles is our PHEV lineup.”

The all-new BMW X3 30e xDrive M Sport is priced at P4.79 million and comes with a portable flexi charger, five-year comprehensive BMW warranty (or 200,000km, whichever comes first), and an eight-year warranty (or 120,000km, whichever comes first) for the electric battery.

For more information, visit https://www.bmw.com.ph/models/new-bmw-x3/ or follow BMW’s social media channels.

The dollar’s monopoly in payments will soon be history

April 21, 2025 | 12:02 am

THE social-media video where Donald Trump’s AI avatar is making Nike sneakers may be just a spoof on the US president’s quixotic bid to reindustrialize America by eliminating bilateral trade deficits. But the meme contains a kernel of truth. The world’s farmers, fishermen, and factory workers labor hard to earn the $100 bill that the Federal Reserve prints at no cost. This exalted status, which a French politician from the 1960s termed as the dollar’s “exorbitant privilege,” has been taken to a breaking point by the tariff war.

No matter what happens in the long run to the US currency’s value or its role as a safe haven for central banks and private investors, one thing is clear: The greenback’s monopoly in payments, whereby it’s exchanged in 88% of all trades, is headed for the history books. A weekend trip to Vietnam brought that home to me.

In Hoi An, a 15^th century trading port repurposed as a tourist attraction, tailors and shoemakers pay for visitors’ taxi rides to their shops and shell out commissions to hotels for directing guests their way. If they didn’t have to charge customers a 3% credit-card fee, they might be able to do more to nudge inveterate shoppers. For instance, they could raise their prices by 1% and still throw in a dinner voucher for high spenders — if they purchase one more linen shirt. The buyers will be richer, as will the sellers.

The reason they can’t fund such sales promotions is the dollar. Or, to be more precise, a financial architecture built around the idea that a payment made on a foreign credit or debit card must set off a chain of expensive activity underpinned by the greenback. For 18 major global currencies that settle without much friction, those costs are negligible. But for the Vietnamese dong, and most other Asian currencies, they’re a burden, which a highly competitive apparel and footwear industry working on tight margins can’t absorb. So it passes on all of it — and sometimes more — to a buyer who would much rather take the free meal.

Take my example. To pay the tailor in Hoi An, my bank had to obtain the local currency, which doesn’t have a liquid market outside Vietnam. So my money most probably got converted into dollars in Hong Kong. After reaching Vietnam, the funds got exchanged again into Vietnamese dong. Almost 40% of the greenback’s $7.5 trillion daily turnover comes from its role as a vehicle of value. Neither the buyer nor the seller has any direct interest in it. Yet they can’t transact without it.

Trump is aware of America’s special status: He has even threatened countries looking to come up with alternative global reserve currencies with 100% tariffs. A high-profile disengagement with the dollar — for instance, when it comes to Saudi Arabia’s invoicing of its oil — may not go down well with Washington. What the White House can’t control, however, are low-profile shifts in the engine room of the payment industry. Even before Trump’s inauguration, I noted that the world of money was splintering into Western and Eastern blocs. The trade war may have accelerated the schism, though the separation is now more likely to be along a US/non-US axis than a West/East split.

I can already pay a Thai merchant in baht from my Hong Kong bank account by scanning a QR code. Vietnam plans to establish similar connectivity with Singapore. These links are between commercial institutions, with third parties providing foreign-exchange services. However, some central banks in Europe are working with their counterparts in Asia to explore automated conversion using blockchain technology. If the pilots succeed, there may be no room for middlemen — software embedded in digital representations of fiat currencies will act as moneychangers. Ergo, there may be no need for the dollar to act as a go-between in transactions that don’t involve Americans.

This is just one of the many experiments underway to boost the efficiency of cross-border retail payments. They’re underpinned by $800 billion in remittances by overseas workers. And then there’s what tourists spend. In Asia, they’re staying 7.4 days on average, 1.3 days more than before the pandemic, according to Mastercard, Inc.’s latest data. For a small business in a lesser-known beach town competing against larger firms in more popular holiday destinations, each hour is valuable — and an expensive payment system an irritant. It has been tolerated so far because nothing cheaper was available, and Asian policymakers’ focus was on shipping goods to the US, a much larger opportunity.

But everything has changed since the April 2 reciprocal tariffs. Chinese President Xi Jinping was about to arrive in Vietnam just as I was leaving. Beijing has been pushing the so-called mBridge initiative in which financial institutions can swap digital currencies issued by their central banks to settle cross-border claims. If the Trump administration is going to upset friends and foes alike to pursue a chimerical vision of labor-intensive industrialization, then it has to be prepared for geopolitical realignments, and an erosion of at least one form of America’s exorbitant privilege.

Those who still view the dollar as a relatively safe asset may want to hold it, as long as the US remains the world’s predominant superpower. But for tourists buying shoes or shirts in Vietnam, the 3% extra charge on payments is an avoidable, anticlimactic loss after haggling for — and winning — a nice discount on the merchandise.

Rather than incurring outsize fees to Visa, Inc. and its partner banks, a dinner at Hoi An’s Morning Glory restaurant seems like a fairer use of my money — while I wait for the last buttons to be sewed on.

BLOOMBERG OPINION

Converge ICT climbs after 2024 profit growth

April 21, 2025 | 12:02 am

SHARES of Converge ICT Solutions, Inc. went up last week, buoyed by the upbeat 2024 earnings report.

Data from the Philippine Stock Exchange (PSE) showed that Converge was the fifth most traded stock this week, with a value turnover hitting P511.34 million from a total of 27.48 million shares traded from April 14 to April 16.

Financial markets were closed on Thursday and Friday in observance of Holy Week holidays.

The information technology giant’s shares rose 8.7% week on week to P19.48 on Wednesday, better than the 0.7% posted by the services index and the 0.9% of the PSE index (PSEi).

Year to date, Converge shares also grew by 20.7%. This was also significantly higher than the performances of services sector (-7.4%) as well as PSEi (-6%).

Its earnings report played a big role in Converge’s stock performance recently, analysts said.

“However, I believe this trend or improvement [last] week was just an extension of its rally which started on the release of CNVRG’s earnings on March 17,” Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a Viber message, referring to the company’s ticker symbol.

“While several global headwinds affected its price, current movement shows it’s trending back to previous levels,” he added.

For his part, Jeff Radley C. See, head trader at Mercantile Securities Corp., said that investors continue to stay bullish as the company continues to expand.

Converge’s attributable net income climbed by 18.8% to P10.81 billion last year from P9.1 billion in 2023, its latest audited financial report disclosed to the local bourse showed.

Its consolidated revenues reached P40.61 billion, 14.8% higher than P35.36 billion posted in 2023.

Mr. See said that the company has been expanding in terms of enterprise through partnerships including that with Elon Musk’s Starlink.

On March 26, Converge confirmed that reselling Starlink will be part of the company’s guidelines for fiscal year 2025 — a move through which it looks to grow consolidated revenues by 14%–16% this year.

This partnership has already been in the works since 2021 with Converge looking to accommodate SpaceX’s potential broadband satellite venture to Southeast Asia at the time, Reuters reported.

Mr. Limlingan added that the upward trend in Converge shares was only paused due to global headwinds related to US President Donald J. Trump’s recent announcement of base level and reciprocal tariffs for all countries exporting to the US on April 4.

Selling was induced as investors braced for more international uncertainties in the future, he added.

Trading days after the announcement of Mr. Trump’s new trade policy saw Converge shares steadily falling from P18.76 closing levels on April 4, even closing at P17.80 on April 8.

“Converge’s price was already trading above P18 level and only fell on global noise/headwinds that affected the broader market,” he said.

Despite this, last week’s growth in price per share just showed a return of the trend seen before global headwinds, he added.

Both analysts were optimistic about Converge’s performance in the upcoming trading days.

Mr. See predicts that investors’ bullish sentiments will persist as the company continues making moves to expand.

“The stock would try again to break the strong resistance between P19-P19.30 next week,” he said in a separate Viber message.

Mr. Limlingan added that consolidation at its current levels “won’t be surprising” as the stock’s price approaches its 52-week high.

However, he said that a pullback may be possible with the stock’s consecutive 3-4% hike.

Mr. See pegged strong resistance and support levels between P19 to P19.30 and P17 and P15.50, respectively.

Meanwhile, Mr. Limlingan pegged a resistance level at P20 and support at around P19 and P18.70.— Matthew Miguel L. Castillo

Indonesia to increase US imports, reduce orders from other countries

April 21, 2025 | 12:02 am

JAKARTA — Indonesia will increase imports of US food and commodities and reduce orders from other countries, chief economic minister Airlangga Hartarto told reporters in Washington.

Mr. Airlangga is in the US as part of a delegation of senior officials to meet US counterparts for talks on a 32% tariff on Indonesian exports, which has been paused for 90 days.

Indonesia has proposed increasing its imports from the US by as much as $19 billion, including around $10 billion of energy imports, to eliminate its trade surplus with Washington and avoid the tariffs threatened by the administration of President Donald Trump.

“Indonesia also plans to buy agricultural products including wheat, soybeans and soybean meal and increase purchases of capital goods from the US,” Mr. Airlangga said at the press conference broadcast on video conference platform Zoom.

“We will support the government’s decision, as long as market prices and competitiveness are aligned,” Ratna Sari Lopis, executive director of the Indonesian Wheat Flour Producers Association told Reuters.

According to the association, Australia provided 40% of Indonesia’s wheat imports in 2024, with 26% from Ukraine and 16% from Canada. US imports stood at just below 4%.

In contrast, Indonesia imported nearly 89% of its soybean from the US in 2024.

“We will also facilitate American companies that have been operating in Indonesia, related to permits and incentives,” he added.

Indonesia will also work on critical minerals and simplify procedures related to American horticultural products imports.

After a meeting with the US Trade Representative and the secretary of commerce, the two countries agreed to complete negotiations within the next 60 days. — Reuters

Banks’ assets up 8% at end-February

April 21, 2025 | 12:02 am

BSP-main office — Bangko Sentral ng Pilipinas main office in Manila. — BW FILE PHOTO

THE PHILIPPINE banking sector’s assets rose by 8% year on year as of end-February, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

Philippine banks’ combined assets increased by 8.02% to P26.95 trillion as of end-February from P24.95 trillion in the same period in 2024.

However, this slipped by 0.6% month on month from the P27.11 trillion recorded at end-January.

Banks’ assets are mainly supported by loans, real properties, and investments. These include interbank loans receivable (IBL) and reverse repurchase (RRP), net of allowances for credit losses, as well as cash and due from banks.

Broken down, the banking system’s total loan portfolio inclusive of IBL and RRP jumped by 12.3% to P14.68 trillion as of end-February from P13.1 trillion a year prior.

Meanwhile, banks’ net investments went up by 4.9% to P7.76 trillion as of end-February from P7.4 trillion in the previous year. Net investments refer to financial assets and equity investments in subsidiaries.

Net real and other properties acquired rose by 8.8% year on year to P116.5 billion from P107.1 billion.

On the other hand, cash and due from banks amounted to P2.37 trillion as of end-February, down by 2.9% from P2.44 trillion a year ago.

Banks’ other assets increased by 4.8% to P2.02 trillion from P1.93 trillion a year earlier.

Meanwhile, the total liabilities of the banking system climbed by 7.7% to P23.54 trillion as of February from P21.86 trillion in the comparable year-ago period.

Bulk of banks’ liabilities were deposits, which increased by 5.67% year on year to P19.74 trillion at end-February from P18.68 trillion a year prior.

Broken down, peso-denominated deposits stood at P16.31 trillion, while foreign currency deposits were at P3.42 trillion. — Luisa Maria Jacinta C. Jocson

Jonathan Anderson will create June collection for Dior Men’s Fashion, LVMH CEO says

April 21, 2025 | 12:02 am

PARIS — Jonathan Anderson will create the June collection for Dior Men’s Fashion, LVMH Chief Executive Officer (CEO) Bernard Arnault said on Thursday at the group’s annual meeting with shareholders.

Mr. Anderson, 40, whose departure from LVMH’s smaller label Loewe was announced on March 17, is one of a new generation of high-profile designers taking over some of the world’s biggest fashion labels amid a sweeping industry overhaul.

The sector is grappling with some of its slowest growth in years, weighed down by China’s property crisis while rising prices have deterred shoppers from splashing out on new fashion.

Mr. Anderson is credited with boosting the profile of Loewe during his tenure at the Spanish label, where he won over fashion critics with original and quirky designs.

Brand hits from Mr. Anderson include €800 barrel-legged jeans and the compact, over-the-shoulder Puzzle bag, which sells for around €3,000.

The Irish native has won a host of awards, including British designer of the year in 2023 and 2024 for his work at Loewe as well as his namesake brand JW Anderson.

He has built a loyal fan base, drawing an eclectic mix of international artists into the annual Loewe craft prize competition, and famously restyled James Bond actor Daniel Craig in wholesome sweaters and baggy trousers for a buzzy Loewe campaign.

LVMH on March 24 named Proenza Schouler designers Jack McCollough and Lazaro Hernandez to replace Mr. Anderson at Loewe. — Reuters