mWell, the digital healthcare arm of Metro Pacific Investments Corporation (MPIC), launched on May 23 Wellness@Work, a suite of customizable programs created to promote a healthier and more productive workforce.
The suite provides human resources (HR) stakeholders with a dashboard to manage all aspects of employee wellness in one place.
“A company is only as strong as the people behind it,” said mWell chairman and MPIC chairman and CEO Manuel V. Pangilinan.
“That’s why we’re doubling down on employee wellness with mWell—bringing together technology, data, and real expertise to help build a workforce that’s not just productive, but healthy and thriving,” he said in a May 23 statement.
Wellness@Work’s Corporate Scoreboard is a monitoring system that gives HR teams real-time insight into employee participation, health trends, and wellness outcomes. It includes monitoring of the artificial intelligence-powered mWellness Score, which tracks physical activity, as well as the Mind Health Score, which helps measure emotional well-being and stress levels.
Employees, meanwhile, gain access to a personalized wellness experience, which includes 24/7 doctor consultations, curated fitness and nutrition programs, and interactive team challenges.
Unhealthy employees are twice as likely to disengage, leading to lower productivity and increased turnover. Hospitalized employees in the Philippines, on average, can incur medical costs of about ₱15,000 per month, based on private hospital estimates. Productivity losses from absenteeism, presenteeism, and decreased engagement cost employers an average of $1,685 per employee per annum, according to the U.S. Centers for Disease Control and Prevention.
Health is the company’s biggest investment, said mWell president and CEO and MPIC chief finance, risk, and sustainability officer Chaye Cabal-Revilla.
“For companies, big or small, investing in employees’ health is important to enable our people to live healthier, happier, and longer,” she said in the same statement. “We are here to help companies increase overall employee happiness and morale, lessen absenteeism, improve productivity, and enhance talent management.”
“Having a healthy workforce will deliver savings on corporate wellness expenses,” she added.
In the offing too are lifestyle programs, in collaboration with Lifestyle Medical Group Manila, with customized nutrition plans and chronic disease management.
“LifestyleMedMNL’s vision is to provide prevention and treatment of lifestyle-related diseases at both individual and community levels, and we have found the right partner for this,” its president Dr. Nicole Anne “Aika” Buenavista said. – Patricia B. Mirasol
mWell is the digital health arm of Metro Pacific Health, a unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.
SM Supermalls has been named the Philippines’ Strongest Brand for 2025 by Brand Finance — the world’s leading brand valuation consultancy. With a Brand Strength Index (BSI) score of 95.0 out of 100, the highest among Philippine brands, this recognition reinforces SM Supermalls’ unwavering pursuit of excellence, innovation, and meaningful impact.
While ranking 10th in overall brand valuation, with BDO retaining the top spot for the second year, SM Supermalls clinched the #1 position in brand strength, underscoring its unmatched role in marketing, customer experience, and stakeholder trust. For businesses and investors, this signals a brand that delivers measurable growth and transformative opportunities.
“SM Supermalls’ achievement as the strongest Filipino brand this year symbolizes success that is built around scale, innovation, and customer experience. Its growing physical presence, paired with its role in both commerce and community, reflects a brand deeply embedded in the nation’s social and cultural fabric,” said Alex Haigh, Managing Director of Brand Finance Asia-Pacific.
These global recognitions are not merely awards — they are a testament to SM Supermalls’ relentless pursuit of excellence, innovation, and meaningful impact. From setting new standards in retail experiences and digital transformation to uplifting communities through purpose-driven campaigns, SM Supermalls continues to elevate the customer journey while fostering inclusive growth.
“These awards are shared victories for our shoppers, partners, and the communities we proudly serve,” said Steven T. Tan, President of SM Supermalls. “Being named the Philippines’ strongest brand affirms the passion and dedication of our SM family. But beyond the recognition, our greatest satisfaction comes from knowing we make people’s lives brighter every day — that’s what truly matters.”
Brand Finance evaluates over 5,000 of the world’s largest brands annually, setting the global standards for ISO 10668 (Brand Valuation) and ISO 20671 (Brand Evaluation). Its methodology — officially endorsed by the Marketing Accountability Standards Board — ensures that each ranking is globally credible and valuable for businesses seeking strategic partnerships and growth.
For corporate partners, tenants, and investors, this recognition underscores SM Supermalls as a dynamic environment for collaboration and growth — where businesses thrive and communities are empowered. It is a brand that commands trust and inspires confidence, delivering both operational excellence and sustainable impact.
As a retail leader with a heart for service and a vision that transcends borders, SM Supermalls proves that the power of a brand lies in how it serves, uplifts, and inspires its communities. These awards are not just milestones; they are a testament to SM Supermalls’ unwavering commitment to shaping the future of retail in the Philippines and beyond.
SM Supermalls also congratulates BDO, which maintained its position as the Philippines’ most valuable brand for the second consecutive year.
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Local government units (LGUs) should prepare ahead for the possible impacts of the Southwest Monsoon(Habagat), following the state weather bureau’s recent declaration of its onset, the Department of the Interior and Local Government (DILG) said on Tuesday.
The DILG said that under the memorandum circular, LGUs should take proactive measures against potential hydrometeorological hazards, such as flooding and landslides.
It added that these efforts should be anchored on the DILG’s Operation L!sto program, the agency’s flagship disaster preparedness initiative.
“LGUs are instructed to ensure the functionality of Emergency Operations Centers with adequate personnel and equipment, and to activate Local Incident Management Teams trained in the Incident Command System,” the DILG said.
The DILG also instructed LGUs to identify and prepare structurally sound evacuation centers equipped with essential facilities such as sanitation, medical aid, and designated areas for vulnerable groups.
Revisions of contingency plans are also advised based on recent local hazard assessments, along with conducting drills to test evacuation procedures.
The interior department also reiterated the strict implementation of no-build zones in high-risk areas and emphasized the continuity of emergency services during severe weather conditions.
Last week, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) announced the onset of the Southwest Monsoon (Habagat.
This was followed by a separate statement on Monday announcing the start of the rainy season, after five days of scattered to widespread rain brought by the Southwest Monsoon.
Areas along the western section of the country are likely to be affected by the onset of the rainy season, Ana Liza S. Solis, PAGASA’s Assistant Weather Services Chief and Chief of the Climate Monitoring and Prediction Section, told BusinessWorld.
She added that precautionary measures should be taken by the public and local governments to prepare for the potential impacts of the rainy season, the Southwest Monsoon, and other weather events. – Edg Adrian A. Eva
The current teacher shortage nationwide is approximately 65,000, far from the Department of Education’s (DepEd) record of around 30,000, a nonprofit organization claimed on Friday.
“We think that we need more than 100,000 teachers in 2024,” Teachers Dignity Coalition National Chairman Benjo Basas told BusinessWorld in an interview. “If we decrease the 36,000 (teaching positions), the current shortage would be around 65,000.”
In 2024, the Department of Education (DepEd) reported a shortage of approximately 60,000 teachers. The Department of Budget and Management (DBM) in May of the same year approved the creation of 22,000 new teaching positions.
By May 2025, the DBM authorized the establishment of 16,000 additional posts, part of a broader plan to introduce 20,000 new teaching positions for the year.
“We think it’s conservative,” said Mr. Basas. “It’s not aligned with what’s happening on the ground.”
He also noted that although the government hires new teachers every year, it must also take into account the number of educators leaving the profession.
“People also retire every year, some resign for greener pastures, and some take early retirement because they can no longer handle the pressure or for other valid reasons.”
Demand for teachers
Education Secretary Juan Edgardo “Sonny” M. Angara said the classroom shortage of over 165,000, especially in urban areas such as Region IV-A and the National Capital Region (NCR), is caused by the growing population.
Due to the increasing number of young population or school-age children and the unequal distribution of students in urban and rural areas, the demand for teachers increases as well, according to Mr. Basas.
“(Schools in) rural areas are not crowded, it’s not congested, unlike in urban areas, where the student population is bigger,” he said. “Kinder to Grade 3 has the highest attendance which means, more teachers are needed, especially in key stage 1 (KS1).”
“I’m assuming that the DepEd based the numbers on a 1:40 teacher-to-student ratio, which should not be the case if you look at it per grade level,” he added.
KS1 learners typically range from five to eight years old. Data from the local statistics agency showed that out of 42 million, around 11 million people aged five to nine had attended school in 2020.
Classes for the upcoming school year will commence on June 16 and end on March 31, 2026. – Almira Louise S. Martinez
The Securities Exchange Commission (SEC) in the Philippines is bound to transform the financial ecosystem. With the new leadership of SEC Commissioner Rogelio Quevedo, the SEC is focusing on deeper innovation and digitization.
The commissioner has a long history working in both corporate law and telecommunication services, marking him as a renowned figure both in the public and the private sector. He worked as a Government Counsel in the Philippines, served in the Office of the Government Corporate Counsel (OGCC), PLDT-Smart, as well as a commercial and civil law professor at the University of the Philippines (UP) College of Law.
At a press conference on May 15, SEC Commissioner Quevedo hopes to bring necessary changes, including innovation with practicality. He saw that innovation is not a buzzword or a new concept to begin with. The commission introduced innovation and has continued to this path since 2021.
“It is always innovation rooted on practicality. It will always be service rooted in compassion. You have to make sure that your innovation is what your clients need,” the SEC commissioner said.
These changes are necessary, especially when it comes to improving regulation and the financial landscape. One technological innovation that he emphasized is the use of artificial intelligence (AI) at SEC. Currently, AI is advancing at an incredible pace, further boosting efficiency and financial inclusion in the sector.
“AI, as I said, is not really a technology. AI is a tool; it is a process. AI can only be as effective as the data it relies on, and the competence of the people feeding the data, and who are running the process itself,” he said.
AI is many things for SEC. It is responsible for automating repetitive process, retrieval of information in real-time, SEC registration, and monitoring borrowers to ensure unfair collection practices are prevented.
However, while digitization advances, it still poses risks. Among these include human biases that can be derived from the use of AI or cybersecurity threats like stoppage of services and identity thefts. To address this, the SEC Commissioner advised approaching AI with caution, as well as leveraging the most recent cybersecurity measures from other established companies. Commissioner Quevedo cites his training as intelligence officer in countering cybersecurity threats to national security as one of his main assets in performing his functions at the SEC.
With AI and cybersecurity in play, players should be able to maximize this to their advantage. The SEC has acknowledged it and has put this into their favor. Commissioner Quevedo believes in the importance of technological innovation in improving regulation and customer experience.
“I believe AI is the answer to the future, but do not maintain that AI is the future. The future is in the human inputs. As Steve Jobs said, jobs will not be taken over by AI but your job will be taken over by another person who knows how to use AI. That’s why it’s important that we embrace AI,” he said in mixed Filipino and English.
The SEC Commissioner also highlighted the need for financial literacy in the Philippines. While financial activities continue to drive the economy, there is a need for better knowledge and education among Filipinos, especially in financial management, spending, saving, and budgeting. This way, it will help them make sound financial decisions in everyday life.
For the SEC, it stressed the need of financial literacy in high school levels in efforts to boost financial literacy in the country. The commissioner said financial literacy can also be included in computer literacy, which can be done in one- or two-day orientations or seminars.
The SEC Philippines is now on track as a forefront player in innovation and digitization. “The SEC today has already grown by leaps and bounds from where it first innovated on digitization.” The commission is kicking off with technological innovation like never been before — more advanced, efficient, and one that champions the ease of doing business.
For more information about the Securities Exchange Commission, visit their website: www.sec.gov.ph.
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SYDNEY – Australia’s independent wage-setting body on Tuesday raised the national minimum wage by 3.5% effective July 1, a real wage increase for about 2.6 million workers on the lowest pay as inflationary pressures ease in the economy.
The minimum rate will rise to A$24.94 ($16.19) per hour, resulting in an extra A$1,670 in a year for full-time employees, according to the Fair Work Commission’s (FWC) annual review.
Headline consumer price inflation held at 2.4% in the first quarter, comfortably within the Reserve Bank of Australia’s target band of 2% to 3% and having come down from the 7.8% peak in late 2022.
FWC President Adam Hatcher said the decision could help many workers to recoup the loss of their real income over the last few years due to high living costs.
“If this opportunity is not taken in this annual wage review, a loss in the real value of wages which has occurred will become permanently embedded … and a reduction of living standards for the lowest paid in the community will thereby be entrenched,” Hatcher said.
Last year, the FWC increased minimum wages by 3.75% but that was largely in line with inflation.
The Australian Council of Trade Unions (ACTU) described the wage increase as “a great outcome” for employees on minimum wages, who it said suffered the most when inflation soared after the COVID-19 pandemic.
“Our lowest-paid workers are getting ahead again,” ACTU Secretary Sally McManus told reporters.
The Reserve Bank of Australia cut interest rates to a two-year low last month as cooling inflation at home offered scope to counter rising global trade risks, and left the door open to further easing in the months ahead.
At the same time, the labor market has remained surprisingly resilient, with the jobless rate hovering at 4.1% for over a year now. Employment gains have been driven by a surge in public sector jobs, with still tepid wage growth suggesting few risks of a damaging wage-price spiral. – Reuters
The Trump administration wants countries to provide their best offer on trade negotiations by Wednesday as officials seek to accelerate talks with multiple partners ahead of a self-imposed deadline in just five weeks, according to a draft letter to negotiating partners seen by Reuters.
The draft, from the office of the United States Trade Representative, provides a window into how President Donald Trump plans to bring to a close unwieldy negotiations with dozens of countries that kicked off on April 9 when he paused his “Liberation Day” tariffs for 90 days until July 8 after stock, bond and currency markets revolted over the sweeping nature of the levies.
The document suggests an urgency within the administration to complete deals against its own tight deadline. While officials such as White House economic adviser Kevin Hassett have repeatedly promised that several agreements were nearing completion, so far only one agreement has been reached with a major U.S. trading partner: Britain. Even that limited pact was more akin to a framework for ongoing talks than a final deal.
In the draft, the U.S. is asking countries to list their best proposals in a number of key areas, including tariff and quota offers for purchase of U.S. industrial and agricultural products and plans to remedy any non-tariff barriers.
Other requested items include any commitments on digital trade and economic security, along with country-specific commitments, according to the letter.
The U.S. will evaluate the responses within days and offer “a possible landing zone” that could include a reciprocal tariff rate, according to the letter.
It was unclear which countries would receive the letter, but it was directed at those with active negotiations that included meetings and exchanges of documents. Washington has been engaged in such talks with the European Union, Japan, Vietnam and India, among others.
A USTR official said trade talks were ongoing. “Productive negotiations with many key trading partners continue at a rapid pace. It is in all parties’ interest to take stock of progress and assess any next steps.”
‘REGARDLESS OF ONGOING LITIGATION’
Tiffany Smith, vice president of global trade policy at the National Foreign Trade Council, welcomed the USTR moves.
“We are encouraged that USTR is moving negotiations ahead as quickly as they can,” she told Reuters, adding that trade deals that removed barriers for U.S. companies abroad and lowered U.S. tariffs would be “a win-win if they are done in a way that returns predictability and stability to trade relationships.”
Mr. Trump’s ambitious – and often frenetic – tariff policy is a pillar of his “America First” economic agenda as he seeks to reshape U.S. trade relationships, reduce trade deficits and protect American industries. Republican lawmakers are also banking on tariffs to add to federal revenue and offset the cost of the tax cut legislation now working its way through Congress.
Mr. Trump’s tariff policies have taken investors on a rollercoaster ride. In May, U.S. stocks held their biggest rally of any month since November 2023, but that was after global indexes had cratered under the barrage of Trump’s tariff announcements through February, March and early April.
Stocks were little changed on Monday afternoon after Mr. Trump announced a surprise doubling of tariffs on steel and aluminum imports on Friday at an event in Pittsburgh.
Meanwhile, the legality of the approach used for imposing the most sweeping of his tariffs has been cast into doubt.
Last Wednesday, the Court of International Trade ruled that Trump had overstepped his authority with tariffs devised under the International Emergency Economic Powers Act, including the “Liberation Day” levies and earlier ones imposed on goods from Canada, Mexico and China related to Mr. Trump’s accusations that the three countries have facilitated the flow of fentanyl into the U.S. Less than 24 hours later, an appeals court temporarily paused that decision. The tariffs at the center of the legal dispute are expected to remain in effect as the case plays out.
The draft letter to trading partners warns them not to believe the tariffs will be sidelined if the court rules against Mr. Trump’s use of the IEEPA.
“Regardless of ongoing litigation concerning the President’s reciprocal tariff action in U.S. courts, the President intends to continue this tariff program pursuant to other robust legal authorities if necessary, so it is important that we continue our discussions on these matters,” the draft says. – Reuters
WASHINGTON – A senior official in Republican U.S. President Donald Trump‘s Justice Department told staff on Monday that he has been directed to investigate clemency granted by Democrat Joe Biden in the waning days of his presidency to members of his family and death row inmates.
Ed Martin, the Justice Department’s pardon attorney, wrote in an email seen by Reuters that the investigation involves whether Mr. Biden “was competent and whether others were taking advantage of him through use of AutoPen or other means.”
An autopen is a device used to automatically affix a signature to a document. Mr. Trump and his supporters have made a variety of unfounded claims that Mr. Biden’s use of the device while president invalidated his actions or suggested that he was not fully aware of these actions. It is not known whether Biden used autopen on pardons.
The email stated that Mr. Martin’s investigation is focused on preemptive pardons Mr. Biden issued to several members of his family and clemency that spared 37 federal inmates from the death penalty, converting their sentences to life in prison.
Just before he relinquished the presidency to Mr. Trump on January 20, Mr. Biden pardoned five members of his family, saying he wanted to protect them from future politically motivated investigations. The pardons went to Mr. Biden’s siblings James Biden, Frank Biden and Valerie Biden Owens as well as their spouses, John Owens and Sara Biden. Mr. Biden on December 1 pardoned his son Hunter Biden, who had pleaded guilty to tax violations and was convicted on firearms-related charges.
Mr. Martin’s email did not specify which pardons of Biden family members were being investigated. It also did not make clear who directed Mr. Martin to launch the investigation.
A Justice Department spokesperson did not immediately respond to a request for comment. A Biden spokesperson did not immediately provide comment.
The U.S. Constitution gives the president broad power to issue pardons to wipe away federal criminal convictions or commutations to modify sentences.
Mr. Trump himself has made extensive use of executive clemency. For instance, he granted clemency on January 20 to all of the nearly 1,600 of his supporters who faced criminal charges in connection with the January 6, 2021, attack on the U.S. Capitol, which was a failed attempt to prevent congressional certification of Biden’s 2020 election victory over Trump.
Mr. Martin previously served as the interim U.S. attorney in Washington before his nomination for that post foundered in the Senate.
Mr. Martin told reporters last month that he viewed the presidential pardon power as “plenary,” meaning it is absolute.
“If you use the autopen for pardon power, I don’t think that that’s necessarily a problem,” Mr. Martin said during a May 13 press conference, adding that he still felt the Biden pardons warranted scrutiny.
The investigation appears designed to use the Justice Department to amplify questions about Mr. Biden’s health and mental acuity, a conversation that has intensified in recent weeks following his cancer diagnosis and a new book revealing Democratic concerns last year about Mr. Biden’s condition.
Mr. Biden, who is 82, last year dropped his reelection bid amid questions about his mental acuity after a disastrous presidential debate performance. Mr. Biden was the oldest person to serve as U.S. president, and Trump is the second oldest.
Mr. Biden’s closest aides have dismissed those concerns, saying Mr. Biden was fully capable of making important decisions.
No evidence has emerged to suggest that Mr. Biden did not intend to issue the pardons. In addition, a Justice Department memo from 2005 found it was legitimate for a subordinate to use an autopen for the president’s signature. – Reuters
WASHINGTON – Staff of the Federal Emergency Management Agency were left baffled on Monday after the head of the U.S. disaster agency said during a briefing that he had not been aware the country has a hurricane season, according to four sources familiar with the situation.
The U.S. hurricane season officially began on Sunday and lasts through November. The National Oceanic and Atmospheric Administration forecast last week that this year’s season is expected to bring as many as 10 hurricanes.
The remark was made by David Richardson, who has led FEMA since early May. It was not clear to staff whether he meant it literally, as a joke, or in some other context.
Mr. Richardson said during the briefing that there would be no changes to the agency’s disaster response plans despite having told staff to expect a new plan in May, the sources told Reuters.
Mr. Richardson’s comments come amid widespread concern that the departures of a raft of top FEMA officials, staff cuts and reductions in hurricane preparations will leave the agency ill-prepared for a storm season forecast to be above normal.
Hurricanes kill dozens of people and cost hundreds of millions of dollars annually across a swath of U.S. states every year. The storms have become increasingly more destructive and costly due to the effects of climate change.
FEMA and the Department of Homeland Security, FEMA’s parent agency, did not respond to requests for comment on Richardson’s remarks. FEMA has previously said it is prepared for hurricane season.
Mr. Richardson’s comment purporting ignorance about hurricane season spread among agency staff, spurring confusion and reigniting concern about his lack of familiarity with FEMA’s operations, said three sources.
Mr. Richardson, who has no disaster response experience, said during Monday’s briefing, a daily all-hands meeting held by phone and videoconference, that he will not be issuing a new disaster plan because he does not want to make changes that might counter the FEMA Review Council, the sources said.
President Donald Trump created the council to evaluate FEMA. Its members include DHS head Kristi Noem, governors and other officials.
In a May 15 staff town hall, Richardson said a disaster plan, including tabletop exercises, would be ready for review by May 23.
CONFUSION
The back-and-forth on updating the disaster plan and a lack of clear strategic guidance has created confusion for FEMA staff, said one source.
Mr. Richardson has evoked his military experience as a former Marine artillery officer in conversations with staff.
Before joining FEMA, he was assistant secretary at DHS’ office for countering weapons of mass destruction, which he has told staff he will continue to lead.
Mr. Richardson was appointed as the new chief of FEMA last month after his predecessor, Cameron Hamilton, was abruptly fired.
Mr. Hamilton had publicly broken with Mr. Trump over the future of the agency, but sources told Reuters that Trump allies had already been maneuvering to oust him because they were unhappy with what they saw as Mr. Hamilton’s slow-moving effort to restructure FEMA.
Mr. Trump has said FEMA should be shrunk or even eliminated, arguing states can take on many of its functions, as part of a wider downsizing of the federal government. About 2,000 full-time FEMA staff, one-third of its total, have been terminated or voluntarily left the agency since the start of the Trump administration in January.
Despite Ms. Noem’s prior comments that she plans to eliminate FEMA, in May she approved Richardson’s request to retain more than 2,600 short-term disaster response and recovery employees whose terms were set to expire this year, one of the sources said, confirming an earlier report by NBC News.
Those short-term staff make up the highest proportion of FEMA employees, about 40%, and are a pillar of the agency’s on-the-ground response efforts.
FEMA recently sharply reduced hurricane training and workshops for state and local emergency managers due to travel and speaking restrictions imposed on staff, according to prior Reuters reporting. – Reuters
THE BANGKO SENTRAL ng Pilipinas (BSP) is likely to cut policy rates by 25 basis points (bps) each this month and in August, as inflation settles below the 2-4% target this year, Deutsche Bank said.
“Our base case is for 25-bp rate cuts in the coming June and August meetings,” Deutsche Bank Research Economist Junjie Huang said in a report.
The Monetary Board resumed its rate-cutting cycle in April, reducing the benchmark rate by 25 bps to 5.5%. The central bank has lowered borrowing costs by 100 bps since it started easing in August last year.
Deutsche Bank said the risk of inflation breaching the central bank’s 2-4% target “remains limited.”
“Full-year inflation in 2025 is at risk of coming below BSP’s 2-4% target range,” it said. “We had recently downgraded our forecast to 1.9% from 2.4%.”
The BSP expects inflation to average 2.3% this year. Headline inflation slowed to 1.4% in April, bringing the four-month average to 2%.
Inflation was 1.3% last month, according to a median estimate of 17 economists in a BusinessWorld poll last week. The government will release May inflation data on Thursday.
BSP Governor Eli M. Remolona, Jr. earlier said cooling inflation has given them “plenty of room” to cut rates this year. He said they could deliver two more rate cuts this year, in “baby steps” of 25 bps.
The Monetary Board’s next policy review is on June 19, followed by three more meetings in August, October and December.
Deutsche Bank said the easing inflation outlook would be supported by low rice prices.
“Rice prices are likely to remain low amid a global supply glut and the rollout of P20 per kilogram subsidized rice, as well as the June 2024 reduction in rice tariffs which would continue to work its way through,” it added.
In April, rice prices fell 10.9% after declining 7.7% in March.
The average price of a kilo of regular milled rice dropped 13.3% year on year to P44.45 in April, while well-milled rice fell 10.4% to P50.54 and special rice declined 6.2% to P60.69 per kilo, according to data from the local statistics agency.
“In addition, falling global oil prices could keep a lid on the Philippines’ domestic fuel prices,” Mr. Huang said.
Oil prices rebounded by more than $1 a barrel on Monday after oil producer group the Organization of the Petroleum Exporting Countries and their allies (OPEC+) decided to increase output in July by the same amount as it did in each of the prior two months, which came as a relief to those who expected a bigger increase, Reuters reported.
Brent crude futures climbed 2.33% or $1.46 to $64.24 a barrel by 6:26 a.m. GMT after settling 0.9% lower on Friday. US West Texas Intermediate crude was at $62.45 a barrel, up 2.73% or $1.66 after a 0.3% decline in the previous session. Both contracts were down more than 1% last week.
The OPEC+ on Saturday decided to raise output by 411,000 barrels per day in July, the third month the group increased it by the same amount, as it looks to wrestle back market share and punish overproducers. The group had been expected to discuss a bigger production hike.
Oil prices have been on the decline in the past few weeks as investors waited for the latest OPEC+ output hike announcement. — Luisa Maria Jacinta C. Jocson
By Aubrey Rose A. Inosante, Reporter
GROWTH in Philippine manufacturing activity slowed in May due to declining output and weaker demand from foreign markets amid global trade tensions.
The S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI), which measures the country’s monthly factory performance, settled at 50.1, slipping from 53 in April.
This was the lowest index since the 49.4 contraction in March.
A PMI reading above 50 denotes better operating conditions month on month, while a reading below 50 shows the opposite.
“The promising growth observed at the beginning of the second quarter signaled a notable cooling in May,” Maryam Baluch, an economist at S&P Global Market Intelligence, said in a report on Monday. “While new orders continued to increase, they did so at a slower pace, overshadowed by contractions in other areas.”
S&P Global data on the Association of Southeast Asian Nations (ASEAN) showed that only the Philippines expanded in May, while Vietnam (49.8), Myanmar (47.6) and Indonesia (47.4) all declined.
In its report, S&P Global said output declined in May, the second contraction in the past three months.
“Overall, the downturn was marginal, but companies noted softer demand conditions weighed on production,” it said.
Despite continuing to signal a rise in new sales, the rate of expansion in new orders was slight and weaker than in April, it added. This was reflected in the softer rate of increase in input buying activity.
“The situation was further exacerbated by a deteriorating demand from foreign markets, with May witnessing a sharper drop in new export orders,” Ms. Baluch said. “As global trade tensions escalate, the outlook for overseas demand appears increasingly precarious,” US President Donald J. Trump paused his reciprocal tariffs in April for 90 days but continues to apply a 10% baseline tariff rate for most trading partners.
Ms. Baluch said the drop in production requirements was accompanied by a fresh decline in employment and the inventories of both purchases and finished goods.
S&P said employment numbers declined for the first time in four months.
The pace of job shedding was marginal, but the strongest in 11 months, which factories attributed to voluntary resignations and the nonreplacement of those roles.
S&P also cited the limited manpower for a renewed buildup of backlogs across Filipino producers.
“On a brighter note, inflationary pressures remain modest and historically subdued, which could play an important role in supporting demand moving forward,” she said.
However, cost burdens and output charges rose to the highest since January.
“The stability of price pressures may also provide a necessary buffer against the challenges posed by a cooldown in new orders and external market uncertainties,” she added.
S&P Global said manufacturers expect new orders to continue to rise, supported by confidence in the year-ahead outlook for production, but the degree of optimism was the third weakest in the series’ history.
Analysts also said trade tensions and softer demand weighing down the country’s manufacturing activity in May.
The anticipation for higher tariffs likely caused subdued exports, said Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc.
“The persistent trade tensions continue to weigh on global trade, causing exports to drop as higher tariffs may be imposed,” he said in a Viber message.
Philippine exports in the first four months rose 9.5% to $26.87 billion, according to the local statistics agency.
Mr. Erece said domestic demand slowed as the election-spending season ended. Stronger manufacturing activity is expected later this year, as local authorities continue trade talks with the US Trade Representative, he added.
John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said companies might have been more cautious due to “election-related transition risks and global supply-chain realignments, which could lead to hesitation in new orders and production planning.”
In the coming months, easing inflation, lower interest rates and public and private sector spending post-election season might help improve factory activity in the Philippines.
Further rate cuts by the Bangko Sentral ng Pilipinas and US Federal Reserve could help cut the financing costs of some manufacturers, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.
The Monetary Board cut the key policy rate by 25 basis points (bps) to 5.5% in April. It has cut the rate by 100 bps since it started its easing cycle in August last year.
BSP Governor Eli M. Remolona, Jr. has signaled two more rate cuts this year. The Monetary Board’s next policy meeting is on June 19.
