Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 887

BPOs wary of ‘indirect’ effects of US tariffs

STOCK PHOTO | Image by DC Studio from Freepik

By Justine Irish D. Tabile, Reporter

THE IT & Business Process Association of the Philippines (IBPAP) said US tariffs may result in disruptions to global investment flows that could ultimately affect its industry.

IBPAP President and Chief Executive Officer Jonathan R. Madrid said no direct impact is expected on the information technology and business process management (IT-BPM) industry, which is also known as the Business Process Outsourcing (BPO), because it supplies services and not goods.

“(Nevertheless), we are closely monitoring the broader economic and investment impacts this may indirectly bring,” he told BusinessWorld.

US President Donald J. Trump announced a 20% tariff on the Philippines this month, higher than the 17% reciprocal tariff he initially imposed in early April.

Mr. Madrid said the government has responded to the US tariff decisions promptly, with a diplomatic push by President Ferdinand R. Marcos, Jr., who is visiting Washington for “a strategic dialogue.”

“Their efforts reflect a strong commitment to investment promotion and economic diplomacy at a critical time,” he added.

He said sustained engagement and collaboration with the US will help “ensure that the Philippine economy remains resilient and attractive to global investors, especially with US counterparts.”

Mr. Marcos and tariff negotiators are in the US to negotiate a lower rate.

Mr. Marcos was due to meet Mr. Trump on Tuesday, Washington time, becoming the first head of state from the Association of Southeast Asian Nations to meet the US President during his second term.

IBPAP said it still expects a 5% increase in industry revenue this year and between 4% and 5% workforce growth.

“For 2025, we are going to show growth. I think we will touch $40 billion in revenue as an industry and should touch 1.9 million in terms of number of workers,” Mr. Madrid said.

Biodiesel blend changes suspended amid high global prices of coco oil

An attendant fills up a vehicle at a gasoline station in Manila, Sept. 18, 2023. — PHILIPPINE STAR/EDD GUMBAN

THE Department of Energy (DoE) said it suspended the planned increase in the coco methyl ester (CME) component of biodiesel, citing the potential impact on pump prices.

In an advisory dated July 17, the DoE informed the downstream oil industry, biodiesel producers, and other stakeholders of the suspension of the CME hike in the biodiesel blend.

The increase to 4% biodiesel blend (B4) was due to be implemented on Oct. 1, going to B5 a year later.

National Biofuels Board (NBB) issued a resolution in May to suspend changes to the biodiesel blend due to “anticipated significant impact on pump prices and the potential inflationary effects on the national economy.”

Energy Undersecretary Alessandro O. Sales said last month cited the current high cost of coconut oil, a primary feedstock for CME.

Mr. Sales said that the global price of coconut oil at the start of the year was about $1,100 per metric ton. This increased to over $3,000 per metric ton at the time of the NBB decision.

“Moving forward, the NBB shall regularly assess and recommend appropriate market interventions to help stabilize the price of biodiesel and its feedstock,” the DoE said.

The DoE will issue a directive to resume the upward adjustments once the NBB gives its approval.

The Biofuels Act of 2006 requires that all liquid fuels for motors and engines contain locally sourced biofuel components.

Under the law, the NBB is tasked with monitoring the implementation of the National Biofuel Program as well as the supply and usage of biofuels and biofuel blends.

The CME blend in diesel was raised to 3% on Oct. 1, 2024 from 2% previously. The blending of biofuels was originally intended to decrease dependence on imported fuel, reduce greenhouse gas emissions, and support the biodiesel industry. — Sheldeen Joy Talavera

PAGCOR driving upside surprise in GOCC dividends, Recto says

GOVERNMENT-OWNED or -controlled corporations’ (GOCCs) dividends will be stronger than expected this year, with the gaming industry regulator largely responsible for the upside, Finance Secretary Ralph G. Recto said.

“PIGO (Philippine Inland Gaming Operations) led to an increase in dividends from PAGCOR (Philippine Amusement and Gaming Corp.), which we did not expect,” he told reporters recently.

Mr. Recto has said that GOCC dividends overall will exceed the target by “P90 billion to P110 billion.”

The Budget of Expenditures and Sources of Financing report had assumed that state-run firms will remit only P20 billion this year.

Asked to clarify whether Mr. Recto meant the final dividend tally would be P110-P130 billion, Undersecretary Ma. Luwalhati C. Dorotan-Tiuseco provided confirmation.

The Department of Finance (DoF) reported on Tuesday that GOCCs had remitted P105 billion to the Bureau of the Treasury as of July, indicating that dividends are currently approaching the low end of the projected range. 

The top source of dividends was the Land Bank of the Philippines, which had remitted P26 billion.

This was followed by the Bangko Sentral ng Pilipinas (P18.91 billion), PAGCOR (P12.68 billion), and Philippine Deposit Insurance Corp. (P10.13 billion), Power Sector Assets & Liabilities Management Corp. (P8.96 billion), the Philippine Ports Authority (P5.20 billion) and Manila International Airport Authority (P3.32 billion).

Rounding out the list of top remitters were Clark Development Corp. (P2.49 billion), the Philippine National Oil Co. (P2.43 billion) and the Bases Conversion and Development Authority (P2.20 billion) also among the top remitters.

In order to boost nontax revenue, the DoF had requested GOCCs to remit dividends equivalent to 75% of their net earnings, well above the 50% floor set by Republic Act No. 7656 or the Dividend Law.

Separately, Mr. Recto ruled out any possible sales of major government assets this year, saying that any disposals will be small.

Asked for updates on the proposed sale of the government’s stake in the Subic-Clark-Tarlac Expressway (SCTEX), Mr. Recto said: “I think that’s still being worked on” by Metro Pacific Investments Corp. and the Bases Conversion and Development Authority.

Last year, the BCDA said it was considering selling its remaining stake in the toll road to MPIC.

Mr. Recto also floated the possibility of the Social Security System or Government Service Insurance System taking over the SCTEX stake, failing which the two government pension funds could look into “other privatization assets.”

The government is set to generate P36.26 billion from the sale of the Caliraya-Botocan-Kalayaan hydroelectric complex.

For 2026, the goal for privatization proceeds has been set at around P100 billion after changes to the medium-term fiscal framework approved by the Development Budget Coordination Committee. 

MPIC is one of the three key Philippine units of Hong Kong’s 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 share in BusinessWorld through the Philippine Star Group, which it controls. — Aubrey Rose A. Inosante

Ban on e-gaming could result in job losses, attract underground operators — consultant

BW FILE PHOTO

THE proposed online gaming ban could result in job losses, the proliferation of underground gaming operations, and a decline in government revenue, a regulatory consultant said.

The current operators “implement robust (know-your customer protocols), age verification, self-exclusion tools, and real-time monitoring. You ban those, and what you get is a black-market surge,” according to Marie Antonette B. Quiogue, chief executive officer of Arden Consult, which advises technology companies on navigating Philippine regulations.

Senators Juan Miguel F. Zubiri and Christopher Lawrence T. Go have filed separate bills seeking to ban e-games.

Ms. Quiogue said in a statement that illegal and unregulated gambling operations are the “real enemy” and not licensed platforms that follow global best practices.

“The infrastructure is already in place. What we need is stronger enforcement against illegal operators, not policies that penalize the compliant,” she said.

The administration’s economic managers support stricter regulation of the industry instead of a ban.

Finance Secretary Ralph G. Recto said the government is considering raising the levy on e-gaming operators proposed that operators be required to list on the Philippine Stock Exchange.

Secretary Arsenio M. Balisacan of the Department of Economy, Planning, and Development said supported such a tax hike while floated a proposal to tax e-wallets.

A group of 14 licensed operators has warned that a ban will result in 50,000 lost jobs.

Mr. Recto has said that about 60% of the gaming market operates illegally. — Aubrey Rose A. Inosante

DA says crop damage initially estimated at P134.7 million

PHILIPPINE STAR/MICHAEL VARCAS

THE Department of Agriculture (DA) said preliminary crop damage estimates totaled P134.7 million following heavy rains generated by tropical storm Crising and the southwest monsoon.

Citing the DA’s Disaster Risk Reduction Management Operations Center, the DA said the estimate covers losses to rice, corn, cassava, high value crops, fisheries, livestock and poultry.

“Affected areas span 8,035 hectares while affected farmers and fisherfolk number 6,377,” it added.

“We are keeping a close watch to prevent significant price increases on key agricultural commodities,” particularly highland vegetables, it said.

The DA has allocated P495.4 million to provide inputs to affected farmers, on top of its quick-response funds, which can be tapped for rehabilitation, survival, and recovery loans, as well as indemnification via the Philippine Crop Insurance Corp. — Kyle Aristophere T. Atienza

PCCI backs 20 measures to ‘unlock economy’s potential’

PHILSTAR FILE PHOTO

THE Philippine Chamber of Commerce and Industry (PCCI) said it supports 20 legislative measures which it hopes will help President Ferdinand R. Marcos, Jr. “unlock the full potential of the economy.”

“The proposals target structural reforms to unlock the full potential of our economy and ensure broadly shared and sustainable growth,” PCCI President Enunina V. Mangio said in a statement on Tuesday.

“The measures align with the administration’s momentum in enhancing competitiveness, expanding economic opportunities, and driving innovation,” she added.

The business group’s endorsements cover measures promoting digital transformation and infrastructure.

“Among the top priorities is the Open Access in Data Transmission Bill (or the proposed Konektadong Pinoy Act), which seeks to expand high-speed internet access nationwide and fully leverage the Digital Transformation Roadmap and National Fiber Backbone,” it said.

“PCCI also backs the passage of a National Comprehensive Infrastructure Masterplan, providing a long-term framework for strategic and resilient infrastructure investment,” it added.

The business group sought the passage of the proposed International Maritime Competitiveness Act and amendments to the charters of the Philippine Ports Authority and the Civil Aviation Authority of the Philippines.

According to the PCCI, these measures, which will resolve conflicting mandates and enhance regulatory oversight in the shipping and aviation sectors, will help improve logistics efficiency and reduce costs.

The PCCI also hopes the President backs the passage of amendments to the Magna Carta for micro, small, and medium enterprises, which it said will help enhance access to finance, markets, and technology for small businesses.

“Agricultural and fisheries reforms are also on the agenda, including the Blue Economy Act, Corporate Farming Act, amendments to the Agri-Agra Law, ASIN Law, Warehouse Receipts Act, and the long-awaited National Land Use and Management Act,” the PCCI said.

The PCCI also sought the President’s support for the proposed Apprenticeship Training System Act, amendments to the Dual Training System Act, and the proposed National Quality Infrastructure Act.

“To enhance public service delivery and fiscal accountability, the PCCI urges the passage of the (proposed) Budget Modernization and Reform Act and Customs Amnesty Act,” it added.

The group recommends the passage of the proposed Cybersecurity Act, E-Governance Act, and Artificial Intelligence Act.

“These measures address structural bottlenecks that hinder investment, logistics, rural development, and regulatory efficiency,” Ms. Mangio said.

“We believe strong endorsement of these bills during the State of the Nation Address will help fast-track their passage and demonstrate the administration’s commitment to inclusive and future-ready economic growth,” she added. — Justine Irish D. Tabile

Document ‘leaking’ PHL stance on tariff talks rejected as fake

DTI Undersecretary Ma. Cristina A. Roque

TRADE Secretary Ma. Cristina A. Roque rejected as “fake” a document circulating on social media purportedly outlining the Philippine position on tariff negotiations with the US.

In an advisory, Ms. Roque said that the social media post claims to instruct the Philippine technical working group (TWG) attached to the tariff talks to take positions that will assure that the US achieves its market-access objectives, described as the so-called 6As — “agriculture, automotive, artificial intelligence-driven technologies, advanced manufacturing and alternative energy sectors, and assured access to Philippine critical minerals.”

Negotiations with the US are covered by confidentiality agreements, with leaks likely to undermine a country’s negotiating position. Philippine industries, including agriculture, have expressed fears that the US will strong-arm Philippine negotiators into lifting restrictions on the entry of US goods.

“I want to inform the general public that I did not issue such a document; hence, it is fake and my signature appearing therein is a forgery. I therefore condemn the malicious and irresponsible circulation of this document and the information contained therein,” Ms. Roque said.

“The sensitivity of the subject matter and the timing of its release to the scheduled engagement of President Marcos with President Trump in Washington, DC reflects the ill motive of whoever is responsible for the document,” she added.

President Ferdinand R. Marcos, Jr. is scheduled to meet US President Donald J. Trump on Tuesday (Washington time), making him the first Southeast Asian leader to meet Mr. Trump since he retook the White House in January.

The document circulating online carries the title “Message to Technical Working Group.”

“The Philippines needs to ensure US farmers, ranchers, factory workers, and business access to almost $500 billion in commercial benefits in the next four years. We are open to negotiate and make these concessions permanent,” according to the document.

It claimed the Philippines is ready to eliminate tariffs on soya, wheat meslin, wheat starch, wheat gluten, and lead-acid batteries while reducing tariff rates for crude oil and wheat seed.

According to the document, the Philippines plans to increase imports of soya, wheat, chicken leg quarters, dairy products, raw materials for the manufacture of firearms, and hardwoods used in furniture.

It also outlined plans to increase imports of liquefied natural gas and ethanol and facilitate US companies’ applications to explore for energy in the West Philippine Sea. — Justine Irish D. Tabile

Honasan flags Konektadong Pinoy bill risks

SENATE PRIB/EDWARD GANAL, PHILSTAR FILE PHOTO

THE Konektadong Pinoy bill lacks safeguards that could result in data breaches or disruptions to national digital infrastructure, according to a former secretary of Information and Communications Technology.

“Without a prior legally mandated national security vetting process in allowing Data Transmission Participants, the Implementing Rules and Regulations (IRR) alone cannot provide the necessary level of scrutiny and accountability,” former secretary Gregorio B. Honasan II said.

Mr. Honasan was quoted in a statement issued on Tuesday by Philippine Chamber of Telecommunications Operators (PCTO).

The PCTO has expressed its opposition to the bill, noting gaps in regulatory oversight and national security risks.

Mr. Honasan singled out the looser rules governing foreign-controlled firms seeking to construct or operate international cable landing stations and satellite gateways.

The PCTO has urged President Ferdinand R. Marcos, Jr. to veto the Konektadong Pinoy bill.

Mr. Honasan called for explicit provisions in the bill that would establish legal accountability for any negligence leading to breaches or service interruptions in critical systems.

The Department of Information and Communications Technology has said that it is confident that the bill will be signed into law.

The Senate and House of Representatives ratified on June 9 the bicameral conference committee report of Konektadong Pinoy.

Telcos consider the current version of the measure to pose a threat to the industry, specifically the two-year grace period for data transmission companies to ensure their systems are secure. — Ashley Erika O. Jose

PHL fuel ethanol imports seen rising 20%

REUTERS

PHILIPPINE FUEL ethanol imports are projected to rise 20% to 450 million liters in 2025, according to the US Department of Agriculture (USDA).

The USDA, citing its Foreign Agriculture Service representatives based in Manila, said Philippine fuel ethanol production is forecast to rise 2% to 390 million liters as “feedstock problems remain.”

“There’s no immediate solution to insufficient feedstocks for fuel ethanol consumption,” it said.

It noted that in 2024, domestic producers supplied around 50% of the bioethanol requirement for blending into biofuel.

As of March 2025, there were 14 accredited Philippine bioethanol producers, with a total production capacity of 508 million liters per year (MLPY).

However, three facilities were non-operational, reducing capacity to 396 MLPY, the USDA said.

It noted that in the Philippines, fuel companies can only import ethanol during shortages, “a condition that should continue due to insufficient feedstock.”

The Biofuels Act of 2006 requires all liquid fuel to contain a biofuel component. The blend was 3% in October 2024. It also bars imports of biodiesel. — Kyle Aristophere T. Atienza

SMB braces for tough closeout game against embattled TNT

FACEBOOK.COM/PBAOFFICIAL

Game on Wednesday
(Smart Araneta Coliseum)
*SMB lead series, 3-1
7:30 p.m. TNT vs San Miguel
(finals Game 5)

BACK in the summit or back in the series?

At the end of Wednesday’s Game 5 of the PBA Philippine Cup Finals, San Miguel Beermen (SMB) seek to be raising a toast to its return to the old throne after disappointing finishes since its last triumph.

But TNT stands in defiance, raring to rain down on the Beermen’s grand closeout plans and stay alive amid tremendous odds.

“Not quiting!” the Tropang 5G said in a social media post that characterized their mindset on the eve of the 7:30 p.m. duel at the Smart Araneta Coliseum.

Down 1-3, it’s literally a “one-miss, you-die” situation for coach Chot Reyes’ embattled crew.

Lose this one and it’s not only “Goodbye, All-Filipino crown” but also “Goodbye, Grand Slam” for the reigning Governors’ Cup and Commissioner’s Cup champions.

So count on the Tropang 5G to throw everything they’ve got to extend the race-to-four to a sixth match and keep their Triple Crown drive going.

And that’s exactly what SMB — gunning for its first championship since the Season 48 Commissioner’s Cup and atonement for totally missing the playoffs in its failed defense of that crown last conference — is bracing for.

The Beermen put themselves in position to achieve their mission by winning Games 2 to 4, 98-92, 108-88 and 105-91, after dropping the drama-filled opener, 96-99.

“The closeout game’s the hardest but we got a lot of veterans in that locker room,” said seasoned guard Chris Ross.

For now, Mr. Ross said the important thing, as San Miguel Corp. sports director Alfrancis Chua emphasized to the team, is to “stay grounded.”

“We know that the job’s not finished and we’re going to go into Wednesday like we need to win this game. So we’re going to prepare and try to put our best foot forward on Wednesday.” — Olmin Leyba

Eala slides in WTA ranking to No. 69 ahead of Canada event

ALEX EALA — USOPEN.ORG

FILIPINA tennis sensation Alexandra “Alex” Eala slipped in the Women’s Tennis Association (WTA) rankings due to inactivity ahead of her transition to the hard court in North America.

In the middle of a month-long break from her European clay and grass campaigns, Ms. Eala tripped from a career-best ranking of No. 56 to No. 69 as per the updated WTA list on Tuesday before her anticipated stint in Canada and the United States this weekend.

The 20-year-old Ms. Eala, who also had a homecoming last week here in Manila and supported the fight of fellow Pinoy pride Manny Pacquiao via online streaming as per her social media post, will play in the National Bank Open in Montreal, Canada on July 26 to Aug. 7.

The National Bank Open, a WTA-1000 level tourney, will feature the top-ranked players today in Aryna Sabalenka of Russia, Coco Gauff and Jessica Pegula of the United States, Iga Swiatek of Poland and Jasmine Paolini of Italy among the few.

This will serve as one of her preparations for another Grand Slam stint in the US Open set on Aug. 24 to Sept. 7 in New York.

This will be Ms. Eala’s third straight Grand Slam main draw stint with hopes of finally breaking through after foiled attempts in the French Open and Wimbledon with similar first-round exits.

“I hope to play well there and of course try to get my first Grand Slam win,” said Ms. Eala during her media availability last week at the Globe Tower in BGC.

Ms. Eala became eligible for direct entries in all of the Grand Slam and WTA-1000 level tourneys, like the National Bank Open, by barging into the Top 100 of the WTA rankings following a historic semifinal stint in the Miami Open last summer.

Last month in England, Ms. Eala surpassed that feat by being the first Filipina WTA finalist ever in the Eastbourne Open in England.

And she’s just getting started with campaigns in the cities of Cincinnati and Monterey before going closer to home in China, Hong Kong and other Asian stops. — John Bryan Ulanday

Stranded PLDT HS Hitters rescued by RAHA Volunteers in flood-hit Araneta Avenue in Quezon City

PLDT HIGH SPEED HITTERS — FACEBOOK.COM/PLDTHIGHSPEEDHITTERS

NOTHING, not even an unbeaten Premier Volleyball League (PVL) club PLDT, can withstand Mother Nature.

Stranded at the SGS Stadium in flood-hit Araneta Avenue in Quezon City, the High Speed (HS)  Hitters needed to be rescued by the RAHA Volunteers Fire Department Monday night for them to go home safe and sound.

“They’re all okay now and got home last night (Monday),” PLDT manager Bajjie del Rosario told The STAR on Tuesday.

Mr. Del Rosario said they’ve already canceled practice on Tuesday and will resume on Wednesday at a different venue — Gameville in Mandaluyong.

“We’ve decided to call off training today (Tuesday)so everyone can rest,” he said.

PLDT is currently atop Pool A alongside Nxled on pristine 3-0 cards in the ongoing PVL on Tour.

The High Speed Hitters clash with Chameleons on Saturday at the USJ-R Coliseum in Cebu City for the solo lead and outright quarterfinal qualification. — Joey Villar

1...886887888...13,866Page 887 of 13,866
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube