Samsung investment decision awaiting talks on power rates

May 15, 2025 | 9:27 pm

THE GOVERNMENT is currently negotiating power rates with Samsung Electronics that will help determine whether the South Korean multinational pursues an over $1-billion investment in the Philippines, the Philippine Economic Zone Authority (PEZA) said.

“What they want to assure is the power rates; that is what is being fixed. But the fiscal incentives have already been ironed out,” PEZA Director General Tereso O. Panga told reporters.

“They have presented prevailing rates in Vietnam, China, and South Korea, and those are going to be used as a benchmark. We can approximate the rates we can give them based on those,” he added.

Asked how much lower Samsung wants power rates to be, he said, “They are being reasonable; that is all I can say, and we have the capacity to provide it.”

He said another government agency is involved in the rate negotiations.

“Their other asks can be addressed through administrative interventions, like water; that one we are doing it from our end,” he added.

According to Mr. Panga, the new investment would expand Samsung’s operation in Calamba Premiere Industrial Parkway in Laguna.

“They have been with PEZA ever since. They will still manufacture multi-layer ceramic capacitors (MLCCs),” he said.

He added that the expansion involves a multi-story facility.

Incentives for investments under P50 billion are governed the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, while incentives can be tailored for investments amounting to P50 billion and above.

Under the law, President Ferdinand R. Marcos, Jr. can grant customized fiscal and non-fiscal incentives for projects at the P50 billion threshold in the “interest of national economic development.”

According to Mr. Panga, due to geopolitical events, many investments from the US, South Korea, and China are entering the country.

Mr. Panga noted that Chinese investor activity outpaced Japanese activity in the first four months.

In the four months to April, PEZA approved P63.523 billion worth of investment approvals, up 112.06% from a year earlier.

South Korea was the top source of investment in the first four months, accounting for P10.45 billion, followed by the US (P2.53 billion), China (P2.17 billion), Japan (P1.66 billion), Hong Kong (P1.14 billion), and Singapore (P1.1 billion).

“We are already seeing this momentum early on this year, we are hoping to sustain it,” he said. — Justine Irish D. Tabile

PHL, S. Korea sign deals on critical minerals, EVs

May 15, 2025 | 9:26 pm

TRADE Secretary Ma. Cristina A. Roque signed a strategic partnership agreement involving critical minerals and electric vehicles (EVs) with South Korean Minister for Trade, Industry, and Energy Cheong In-Kyo, the Department of Trade and Industry (DTI) said.

In a statement on Thursday, the DTI said the memorandum of understanding (MoU) signed in South Korea on Wednesday is expected to accelerate trade, drive industrial transformation, and support the transition to green energy.

“This MoU is the embodiment of President Ferdinand R. Marcos, Jr.’s mission to build a nation propelled by strategic global partnerships, environmentally responsible development, and a dynamic industrial sector,” Ms. Roque said.

The MoU covers renewable energy, electric vehicles, and the value-added processing of critical minerals for battery production in the interest of advancing both countries’ green industrial revolution.

Also on Thursday, Ms. Roque inaugurated the DTI SME Showroom at the President Hotel, offering a showcase for export-ready Philippine products.

“This launch is a concrete step towards bringing small and medium enterprises (SMEs) closer to the global market,” Ms. Roque said.

“By providing this physical presence overseas, we break through geographical barriers for our SMEs and build the trust that international buyers seek,” she said. — Justine Irish D. Tabile

Hog industry lobbied for pork MSRP removal — DA

May 15, 2025 | 9:26 pm

meat-pork-inspection — PHILIPPINE STAR/ MICHAEL VARCAS

THE Department of Agriculture (DA) said on Thursday its decision to discontinue the maximum suggested retail price (MSRP) scheme for pork was the result of lobbying by the hog industry, which argued that production remains constrained by African Swine Fever (ASF).

Agriculture Secretary Francisco Tiu Laurel, Jr. clarified that the DA is withdrawing the pork MSRP “at the request of industry players.”

“While the industry tried to comply with the MSRP, the severe shortage in swine due to ASF, combined with strong consumer demand, has made it increasingly difficult to keep pork prices down,” he said.

The MSRP had been set at P300 per kilo for a whole slaughtered pig, P350 for pork shoulder and hind leg and P380 for pork belly.

Agriculture Undersecretary for Livestock Constante J. Palabrica said on Wednesday that vendors were not complying with the MSRP likely due to high farmgate prices, reportedly as high as P290 per kilo.

Mr. Laurel said pork retail prices remain high, “with industry groups pointing to the ASF resurgence as a key factor disrupting supply and dampening production.”

Since the first outbreak in 2019, the national hog inventory has declined from about 13 million head to just 8 million, according to the DA.

DA spokesman Arnel V. de Mesa told reporters on Thursday that the hog industry cited the need for a “recovery period” from ASF.

The MSRP will be revised, he said.

Compliance with the pork MSRP was below 5% as of May 2, against 30% on April 1.

Alfred Ng, National Federation of Hog Farmers, Inc. vice-chairman said the MSRP “failed” because “less than 15% of retailers followed the MSRP, claiming higher transfer prices from middlemen who in turn blame farmers,” he told BusinessWorld.

He said the DA’s failure to control the viajeros — the consolidators who link farms with dealers — was “the actual cause of the failed MSRP scheme.”

Mr. Ng said producers have to “sacrifice P2,000 per pig to cooperate with the DA.”

“How else will farms recover from the millions of losses the past year?”

“DA always says farmers have a 30% profit compared to viajeros with 10% and retailers 5%. In reality, farmers need a minimum of four to six months before they can convert their pigs to cash,” he said.

He said the actual profit of pig producers is only between 5% and 7.5% because they have to deal with animal diseases.

Mr. Laurel, meanwhile, said the lifting of the pork MSRP will not lead to a sudden spike in prices as markets also deal in cheaper imported pork.

Pork imports hit 53.598 million kilos in February, up from 38.994 million kilos a year earlier.

The DA said it will focus on buying hogs from farmers for P230 per kilo and distribute these to key slaughterhouses.

The DA is piloting a direct-sourcing scheme involving Food Terminal, Inc. (FTI) and Charoen Pokphand Foods PLC (CP Foods).

State-owned FTI has been supplying a Caloocan slaughterhouse with 100 live hogs daily from CP Foods since April.

The DA is hoping to pursue similar arrangements with other farm companies like Pilmico Foods Corp.

Mr. Ng welcomed the direct-sourcing strategy but noted that “many farms” refuse to sell to the DA because of its 30-days-to-pay terms.

Mr. Palabrica on Wednesday described the mode of payment for the direct-sourcing program as a “credit on delivery” scheme.

He said about P5-7 billion is earmarked for the program, adding that the FTI sells the hogs at no markup, while the cost of delivery to slaughterhouses is absorbed by the partner company.

Meanwhile, Mr. Laurel said the DA has hit the minimum access volume (MAV) quota for meat imports.

“Same breakdown as last year,” he said, noting that the allocation remains the same pending tariff negotiations with the US.

“Whatever changes we will make to the MAV allocation, it will be in 2026,” he said.

Meat Importers and Traders Association (MITA) President Jess C. Cham told BusinessWorld he supports an increase in the MAV.

“After all the current volumes were set 30 years ago when our population was 50% less, with lower per capita consumption,” he said.

“In addition, we are facing production shortfalls due to animal diseases such as ASF,” he added.

He noted that the delayed release of MAV allocations has “affected greatly the purchasing decisions of the licensees.”

The DA in April said it was hoping to overhaul the MAV system, which it said was being “exploited by a small number of accredited importers.” — Kyle Aristophere T. Atienza

Visitor arrivals of 6 million seen possible in 2025 — leisure analyst

May 15, 2025 | 9:26 pm

THE PHILIPPINES can hit visitor arrivals of 6 million this year, even with its key source markets roiled by currency volatility, Leechiu Property Consultants said.

“I think the Philippines can still book 6 million visitors by year’s end, but of course there are risks,” Alfred Lay, director for hotels, tourism, and leisure at Leechiu, told BusinessWorld.

“Risks for this year are all mainly external, namely the uncertainty in the global economy, airline disruptions, and exchange rate volatility in our top source markets, which can both have positive and adverse effects,” he added.

The Department of Tourism reported that the Philippines booked 5.95 million visitor arrivals last year, well off its target of 7.7 million.

Mastercard Chief Economist for Asia-Pacific David Mann said that inbound tourism to the Philippines is recovering slowly compared to the outbound segment of the business.

“We have seen outbound spending rise 6% versus 2019, with the majority traveling to Japan, Korea, and Vietnam,” Mr. Mann said in a virtual briefing on Thursday.

“The inbound recovery has been a bit slower, at less than three-quarters (72%) recovered to 2019 levels, likely due to some of the slower recovery in the air capacity and reliance on long-haul markets,” he added.

He noted the slowdown in arrivals from Northeast Asia but added that visitors from Singapore, the US, and Australia, as well as overseas Filipinos, have been helping support the recovery.

The Philippines recorded 2.1 million visitor arrivals as of May 1, down 0.82% year on year.

South Korea, the top source market, accounted for 22.25% of arrivals, or 468,337, down 18% from a year earlier.

The other top source markets were the US, Japan, Australia, and Canada.

“While the dip in South Korean arrivals is notable, it’s too early to call it a lasting trend,” Mr. Lay said.

“Encouragingly, we’re seeing steady growth from the US, Australia, Japan, and parts of Europe — markets showing healthy demand that can help offset the shortfall,” he said.

However, he said the decline in arrivals “highlights the ongoing need for both the private and public sectors to continue improving our infrastructure and services.”

“The regional market is very competitive, and we need to keep adding more focus, resources, and funding to our tourism sector to ensure we stay relevant,” he added.

He said the opportunities in Philippine tourism still lie mainly in the domestic market. — Justine Irish D. Tabile

Puregold sees Vis-Min expansion helping more small businesses

May 15, 2025 | 9:25 pm

PLANS to expand in the Visayas and Mindanao will help encourage the growth of small businesses, supermarket chain Puregold Price Club, Inc. said.

Puregold Vice-President for Operations Antonio G. Delos Santos II said that the company, whose core market is sari-sari store owners buying inventory to sell to consumers, has a new-store target of 25 locations.

“What we want is to put up stores in places that do not yet have Puregold,” Mr. Delos Santos told reporters on the sidelines of Puregold’s Tindahan ni Aling Puring (TNAP) Convention on Thursday.

“Very soon we will be opening in Pantukan, Davao de Oro and in Sindangan, Zamboanga del Norte,” he added.

He said there are also plans to open stores in the north, Metro Manila, and Bicol.

“We want Aling Puring’s footprint (to be nationwide) because we believe that it is not only the National Capital Region that needs the help of Aling Puring,” he said.

“We want Aling Puring to reach all places in the Philippines, especially Visayas and Mindanao, to help entrepreneurs in these regions,” he added.

He said that the company’s goal is to help businesses succeed by selling the right products.

“If more Puregold stores open, more jobs will be created,” he added.

Puregold President Ferdinand Vincent P. Co said the company’s business impact is not limited to the number of locations.

“When a sari-sari store thrives, a family moves forward, a community strengthens, and the economy grows from the ground up. By enabling our ‘Ka-Asensos’ (sharers in prosperity) to succeed, we are paving the road to thriving communities,” he added.

It said the TNAP program has become a “nationwide platform for micro-entrepreneurship.”

Puregold currently has a 512-store network. — Justine Irish D. Tabile

SC ruling nullifying LGU mining bans sets bad precedent — environmentalists

May 15, 2025 | 9:25 pm

By Kyle Aristophere T. Atienza, Reporter

A SUPREME COURT (SC) ruling striking down local-government mining bans sets a bad precedent for conservation, according to environmental groups.

The ruling also exposes the flaws of a 1995 mining law, they added.

Alyansa Tigil Mina (ATM) said the ruling has “clear repercussions for efforts to stop destructive and irresponsible mining.”

It called for a balanced interpretation of laws on local autonomy and minerals management.

“In the real world where mining corporations and political dynasties rule economic decision and management of our natural resources, this is not a just interpretation, in our view.”

The ruling nullified a 25-year moratorium on large-scale mining by the province of Occidental Mindoro and the municipality of Abra de Ilog in that province, with the SC saying it violated Republic Act (RA) No. 7942 or the Philippine Mining Act of 1995.

It stemmed from a case filed by Agusan Petroleum and Mineral Corp., which argued that the ban violated its exclusive rights to mine in Mamburao and Abra de llog under a government-approved Financial or Technical Assistance Agreement (FTAA).

ATM said the ruling constrains the police powers of LGUs, though it notes that instead of blanket bans, it found that LGUs can decide to approve or disapprove of specific mining applications.

“We are asking public interest law organizations to review and give a briefing to environmental and climate justice networks and affected communities as soon as possible, so we may be able to draft our responses with concerned LGUs,” it said.

Occidental Mindoro elevated the case filed by Agusan to the SC after a regional trial court voided the ordinances imposing the ban.

The province argued that the ordinances were a valid exercise of its police power since their purpose was to protect the environment and the lives and safety of residents.

The SC said large-scale mining and exploration of mineral resources are legal under the Constitution and the Philippine Mining Act of 1995, adding that it is the State’s duty to promote these activities “to support national development, while also ensuring environmental protection and safeguarding the rights of affected communities.”

Local ordinances are not considered “laws” that can prohibit mining under Section 19 of RA 7942, according to the ruling.

The power of LGUs to issue ordinances comes from Congress, and interpreting “laws” to include local ordinances would, in effect, allow LGUs to override Congressional authority to regulate mining, it said.

The ruling noted that RA 7942 gives LGUs the power to approve or deny individual mining applications based on their effects on the environment, livelihoods, and land rights.

“However, the law does not authorize them to impose a blanket ban on all large-scale mining in their area,” the court said.

Kalikasan People’s Network called the ruling a “dangerous move.”

“This ruling… is a direct assault on the autonomy of local governments and the collective right of the people to a balanced and healthful ecology, as enshrined in the Constitution,” it said.

The group called on the 20th Congress to repeal RA 7942 and pass the people’s mining bill.

The bill seeks the creation of multi-sectoral mineral councils, expanding the decision-making process to affected communities,stakeholders, and LGUs.

The bill “affirms the role of the MGB as a scientific research institution under the DENR.”

Meanwhile, the Philippine Nickel Industry Association (PNIA) said the court ruling “holds profound significance not just for the mining sector, but also for maintaining the delicate balance between local government authority and national laws.”

It called the ruling a “pivotal step in enhancing the competitiveness of the mining industry while fostering its sustainable development.”

“This ruling not only clarifies legal ambiguities in mining governance but also sets a crucial precedent for future policy discussions.”

The SC issued the ruling months after the province of Palawan, backed by local communities, issued a 50-year moratorium on new mineral agreements.

Finance dep’t, UNDP launch $4.5-million accelerator for nature-based enterprises

May 15, 2025 | 9:24 pm

THE Department of Finance (DoF) said it tied up with the United Nations Development Programme (UNDP) to launch a $4.5-million “accelerator” which will help enterprises scale up sustainable and inclusive businesses.

“It aims to identify and support 10 high-potential nature-based enterprises that deliver direct, measurable environmental benefits while driving sustainable and inclusive economic growth,” the DoF said in a statement on Thursday.

NatureNest, which was launched on May 5, is a six-month accelerator program under Accelerating Green and Climate Finance in the Philippines: Nature-based Solutions (AGCF) Project.

Also providing funding were the Government of Canada. The UNDP tapped Villgro Philippines to implement the program.

The DoF said the enterprises participating in the program will be supported with capacity-building, coaching, and specialized technical assistance to help them scale immediately.

The project will fund the creation of a climate finance lab; climate data platforms for research in Nature-Based Solutions finance; as well as the design and incorporation of gender-responsive and green and climate-related policies in lending programs.

The AGCF program will also support the establishment of a system to report Sustainable Development Goals impact of green and climate investments made by the private sector and financial institutions. — Aubrey Rose A. Inosante

Coal-fired power plants facing higher insurance costs — DoE

May 15, 2025 | 9:24 pm

COAL-FIRED power plants are experiencing difficulties in obtaining insurance cover as the transition to green energy moves forward, according to the Department of Energy (DoE).

“The general observation is that the insurance premiums have significantly increased since several years ago. And not only that they have increased, but that insurers are reluctant to renew when it is a coal-fired power plant,” Energy Secretary Raphael P.M. Lotilla said at a briefing on Thursday.

Mr. Lotilla said insurers “have shown reluctance in providing reasonable rates of insurance for the power sector,” even for coal-fired power plants that are up and running.

“We still have coal-fired power plants that are not covered by the coal moratorium,” he said. “And we have the challenge of getting not only financing for those that are still to be built, but also the insurance premiums that are being charged especially for these power plants.”

In 2020, the DoE issued a moratorium on the development of greenfield coal-fired power plants.

The Philippines has around 7,000 megawatts of coal-fired power plants that are 10 years or younger, Mr. Lotilla said.

He met with some representatives of the insurance industry on Wednesday.

“We want to make sure (we can) convince them that the risks that they associate with the Philippines are actually much less than what they are (pricing into) their premiums,” he said.

He said insurance companies are currently reviewing their exposure in the face of the changing global environment.

The government is seeking to increase the share of renewable energy in the power generation mix to 35% by 2030 and to 50% by 2040.

In 2023, the power generation mix consisted of 63% coal-fired and 22% renewable energy. — Sheldeen Joy Talavera

Agri budget for 2026 to feature bigger allocations for coconut, coffee, sugar

May 15, 2025 | 9:23 pm

Francisco Tiu Laurel Jr. — FRANCISCO P. TIU LAUREL, JR. — PHILIPPINE STAR/JESSE BUSTOS

THE Department of Agriculture (DA) said it will seek to move away from its current rice-centric focus by funding more high-value crops like coconut and coffee in 2026.

“Bago ako pumasok, actually rice-centric na. (Before I took office, the Department was already rice-centric) But right now, for our proposed 2026 budget, we are putting more money into coconut, calamansi, coffee, sugar, (and other) high-value crops,” Agriculture Secretary Francisco Tiu Laurel, Jr. told reporters.

In the first quarter, the value of production of palay (unmilled rice) at constant 2018 prices grew 0.3% to 4.7 million metric tons.

Corn production declined 5.1% in the quarter, reversing the year-earlier 0.5% growth.

Coconut output slipped 0.3%, against the 3.3% decline a year earlier.

Crops that posted double-digit increases in the value of production included tobacco (80.4%), cacao (23.6%), sugarcane (19%), rubber (13.6%), coffee (10.7%) and mung bean (10.1%). — Kyle Aristophere T. Atienza

Xinyx Design seeking to tap Visayan talent

May 15, 2025 | 9:23 pm

INTEGRATED CIRCUIT (IC) design solutions company Xinyx Design said it is looking to open an office in the Visayas to broaden the pool of IC designers.

“We need to work on the foundation and make sure the ecosystem is present and visible for companies around the world to say, ‘Okay, the Philippines is good to invest in,’” Christine Gojar, corporate communications executive at Xinyx Design, told BusinessWorld.

“We’re planning to expand in Visayas, but we’re not sure when because we’re still focused on curriculum development with the schools,” she said. “We’re looking at Cebu and Iloilo.”

Xinyx Design was established in 2009 with 10 engineers. The company is one of the biggest fabless IC design houses in Southeast Asia with about 400 engineers.

“We’ve really been growing exponentially just because of the demand, and we’re (running out of) people to hire, and that’s why we’ve been focusing on going to the schools and trying to get students interested in microelectronics,” Ms. Gojar said.

However, she said finding interested prospects requires a clearing up of misconceptions about the semiconductor industry.

“When (students) hear about semiconductors, they think they’re going to work at a factory,” Ms. Gojar said.

Last week, the company teamed up with Colegio de Muntinlupa to launch LABS by Xinyx, the first flexible learning platform catering to IC design and microelectronics.

The company is looking to train 1,000 students annually through LABS by Xinyx.

The Campus Connect Program, which Xinyx launched in 2018, aims to help students enter the microelectronics industry through internships and scholarships.

The company has worked with schools such as the Mindanao State University – Iligan Institute of Technology, Colegio de Muntinlupa, De La Salle University, Technological University of the Philippines – Manila, and Batangas State University.

“The target really is to convince the STEM (science, technology, engineering and mathematics) high school students to take up electronics engineering or computer engineering when they get to college, and to get the undergraduates interested in IC design and take up a microelectronics specialization,” Ms. Gojar said.

Electronic products were the Philippines’ top commodity export last year, accounting for 53.4% of the total. — Beatriz Marie D. Cruz

UBS sees pickup in PHL gold investments

May 15, 2025 | 9:23 pm

gold-bars — STOCK PHOTO | Image from Freepik

UBS INVESTMENT BANK said gold investments in the Philippines are expected to pick up this year, driven by the US Federal Reserve’s easing cycle and a weakening dollar.

“If you look at physical investment demand, it was positive in the first quarter, and that’s helped offset the weakness in jewelry demand. So I would expect that trend to continue,” UBS Investment Bank Precious Metals Strategist Joni Teves said in a briefing on Thursday.

UBS sees gold prices ending the year at $3,500 an ounce, but could hit a low of $3,100 if the Fed turns hawkish.

“Our expectation is that the Fed continues to ease policy rates, given the downside risks to economic growth. That is the key to our bullish gold outlook. The weaker dollar view that we have as well is a factor and that is long-term supportive for gold,” Ms. Teves said.

UBS expects gold to continue to rally this year in the face of uncertainty generated by the Trump administration’s tariffs.

“We have been bullish for some time, and we remain bullish on gold here. We think that the market can continue to rally in this environment where there’s a lot of uncertainty, particularly around tariffs, but also broader macro uncertainty, and persistent geopolitical risks,” she said.

Ms. Teves added that gold prices could be dragged down in Asia by demand for jewelry.

“In general, our view this year would be for jewelry demand to continue being under pressure because of the high prices of gold especially given our bullish outlook but for physical investment in gold to continue to be strong,” she said.

Recent policy changes in China supportive of gold could also boost demand as it improves market sentiment, but Ms. Teves noted the volume of investments coming from that country will not be substantial.

“The announcement earlier this year on insurance companies being allowed to invest up to 1% of their assets in gold, we think is a positive factor or a positive development for the long term in gold. Currently, we don’t think that there’s going to be large volumes coming out of this, but what we think this has done is fueled positive sentiment onshore and there has been strong retail and institutional investor demand for gold in China as evidenced by the sharp rise in Shanghai Gold Exchange trading volumes, high premiums onshore, and large inflows into Chinese gold ETFs,” she said. — Aaron Michael C. Sy

Working children tallied at 2.7% of child population

May 15, 2025 | 9:19 pm

WORKING CHILDREN as a percentage of the overall child population fell to 2.7% in 2024 from 3.5% a year earlier, the Philippine Statistics Authority (PSA) reported.

The number of working children last year was estimated at 863,000, down from 1.09 million in 2023.

The PSA defines working children as those between five and 17 years and engaged in a family business, or any job, regardless of pay, for at least one hour per week.

The services sector had the biggest share of working children, accounting for 50.3% of the total, against 50% in 2023.

Agriculture accounted for 40.8%.

Boys accounted for 61.8% of working children.

In 2024, 73.8% of working children logged 20 hours or less of work each week, little changed from a year earlier.

Federation of Free Workers (FFW) Vice-President Julius H. Cainglet said that the reduced number of child workers is a good start, but the efforts to reduce child labor will go to waste if the educational system is not improved.

“After all the reason why we want to remove them from work is to get them back to education,” he said via Viber.

Meanwhile, the number of working children involved in “child labor” — those engaged in hazardous work or log more than 40 hours a week — was estimated at about 513,000 in 2024, down from about 678,000 a year earlier.

The PSA estimated that 59.4% of working children in 2024 were engaged in child labor, down from 62% in 2023. The child laborers consisted of 69.1% boys and 30.9% girls.

Agriculture had the highest share of child laborers at 64.2%, followed by services (28.9%) and industry (6.9%).

“We need agro-industrial development so there will be more decent jobs available for the members of the family of working age. We need more funds for education to possibly cover warm and healthy meals for elementary school pupils,” Mr. Cainglet said. — John Phoebus G. Villanueva