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China protests US alert over security rules change in Hong Kong

A view Hong Kong's city skyline from the Wan Chai District. — ED GERONIA

BEIJING — China’s top diplomat in Hong Kong has met the senior US diplomat in the city to protest against a US public alert over new security rules in Hong Kong, the Chinese Foreign Ministry said.

In a statement released late on Saturday, the Chinese foreign ministry’s Hong Kong office said Commissioner Cui Jianchun met US Consul General Julie Eadeh on March 27 and expressed “strong dissatisfaction and firm opposition”, urging Washington to stop interfering in Hong Kong’s affairs and China’s internal affairs “in any form”.

Hong Kong this month amended its enforcement rules for the national security regime, making it an offense in national security cases to refuse to provide passwords or other decryption assistance to access an electronic device.

In response to the rule changes, the US Consulate General in Hong Kong issued a security alert on March 26, calling for contact with the Consulate in case US citizens are arrested or detained in connection with the new security enforcement rules.

“We do not discuss the details of diplomatic engagements,” a US Consulate spokesperson said in response to a request for comment. — Reuters

Israel blocks Cardinal from Jerusalem’s Holy Sepulchre on Palm Sunday, sparking outcry

A general view shows part of Jerusalem and Al-Aqsa compound, also known to Jews as the Temple Mount in Jerusalem's Old City in the early hours of June 13, 2025. — REUTERS

JERUSALEM — Israel blocked Jerusalem’s Catholic cardinal from marking Palm Sunday at the Church of the Holy Sepulchre, sparking an international outcry that led Prime Minister Benjamin Netanyahu to reverse the ban for the remainder of Holy Week.

The Latin Patriarchate of Jerusalem said Israeli police prevented Cardinal Pierbattista Pizzaballa and Friar Francesco Ielpo from entering the Holy Sepulchre, built on the site where Christians believe Jesus was crucified and rose from the dead.

The police cited security concerns related to the war in Iran for the ban.

“As a result, and for the first time in centuries, the Heads of the Church were prevented from celebrating the Palm Sunday Mass at the Church of the Holy Sepulchre,” it said in a statement.

Mr. Netanyahu posted on social media just after midnight that he instructed relevant authorities to grant full and immediate access to the cardinal.

“Today, out of special concern for his safety, Cardinal Pizzaballa was asked to refrain from holding Mass at the Church of the Holy Sepulchre,” he said.

“Even though I understand this concern, as soon as I learned about the incident with Cardinal Pizzaballa, I instructed the authorities to enable the Patriarch to hold services as he wishes.”

Israeli police said all holy sites in Jerusalem’s Old City – including those sacred to Christians, Muslims, and Jews – had been closed to worshippers since the start of the US-Israeli war on Iran, particularly locations without bomb shelters.

Police said they had rejected a request from the Patriarchate for a Palm Sunday exemption.

“The Old City and the holy sites constitute a complex area that does not allow access for large emergency and rescue vehicles, which significantly challenges response capabilities and poses a real risk to human life in the event of a mass casualty incident,” police said.

RESTRICTIONS AFFECT EASTER, RAMADAN, PASSOVER

Palm Sunday marks the beginning of Holy Week, the most important week in the Christian calendar, leading to Easter. The Old City would typically be busy, with Roman Catholics passing through the massive wooden doors of the Holy Sepulchre.

This year, Christians, Muslims, and Jews have been unable to observe Easter, Ramadan or Passover as usual due to police restrictions. Jerusalem’s Al-Aqsa Mosque was largely empty during Ramadan, and few worshippers have come to Judaism’s Western Wall as Passover approaches on Wednesday.

Italy’s Prime Minister Giorgia Meloni criticized the police action and Foreign Minister Antonio Tajani said on social media that he would summon Israel’s ambassador over the incident.

France’s President Emmanuel Macron condemned the Israeli police’s decision, which he said “adds to the worrying increase in violations of the status of the Holy Places in Jerusalem”.

US Ambassador to Israel Mike Huckabee said denying the Patriarch’s entry to the church on Palm Sunday was “difficult to understand or justify”.

The Vatican did not respond to a request for comment. On Sunday, Pope Leo said that God rejects the prayers of leaders who start wars and have “hands full of blood”, in unusually forceful remarks as the Iran war entered its second month.

INCONSISTENT ENFORCEMENT, RESIDENTS SAY

On March 16, shrapnel from ballistic missiles fired by Iran and debris from Israeli interceptors ​that shot them down fell by the church and the nearby hilltop plateau​ known to Muslims as Al-Aqsa compound and to Jews ​as Temple Mount.

Residents of the Old City and religious officials said police restrictions on worship had not been implemented consistently.

They noted that Muslim Waqf preachers were able to access Al-Aqsa Mosque during Ramadan and Eid al-Fitr, and that cleaners were permitted ahead of Passover to remove prayer notes from the Western Wall, an annual ritual.

On Sunday, Franciscan friars and worshippers were also allowed into another Old City shrine, a short walk through the Old City’s narrow alleyways from the Holy Sepulchre, to mark Palm Sunday. A Reuters photograph showed around a dozen people bowing their heads in prayer and carrying palm fronds. — Reuters

1 weekend, 8 coastal sites, 2.3 metric tons of trash cleared: MPIF’s Shore It Up! drives nationwide marine cleanup

Metro Pacific Investments Foundation (MPIF), the corporate social responsibility arm of Metro Pacific Investments Corporation (MPIC), brought together a total of 2,894 volunteers, cleared 2.3 metric tons of marine litter, and planted 600 mangroves, in its biggest Shore It Up! Weekend yet — a nationwide annual marine conservation initiative that mobilized communities across eight partner sites: Del Carmen, Siargao; Alaminos, Pangasinan; Puerto Galera, Oriental Mindoro; Medina, Misamis Oriental; Cordova, Cebu; Marinduque; Mabini, Batangas; as well as partner organizations Tubbataha Reefs Management Office and the Resort Owners Association of Mabini, Batangas.

Celebrated every last weekend of March, Shore It Up! Weekend, now on its 18th year, is MPIF’s flagship coastal and marine conservation effort, anchored this year on the theme “One Hour for the Planet, One Weekend for Our Shores.” Across the country, communities carried out coordinated coastal and underwater cleanups alongside mangrove planting initiatives. As part of the weekend, participating sites also observed Earth Hour through local activities, complementing the broader call for environmental action.

MPIF President, Melody del Rosario joins volunteers in showing love for the shores of Del Carmen, Siargao.

Collective Action Across Communities

Underwater cleanup led by SIU partner, Resort Owners Association of Mabini (ROAM)

Marine Protection, Inspection and Conservation Guardians, together with Eco-guides from the Mangrove Protection Information Center and Mangrove Propagation and Information Center, were mobilized alongside hundreds of volunteers — including local residents, fisherfolk, students, youth groups, civic organizations, dive groups, and environmental advocates. Working closely with local government units and partners, they removed waste from both shorelines and nearshore waters. Across all sites, activities were designed based on local environmental needs and priorities.

Mangrove planting efforts in Alaminos, Pangasinan

From collection to disposal, all participating sites followed a systematic approach to waste management, with 2.3 metric tons of debris segregated and recorded. Plastic bottles, totaling 13,054 pieces, accounted for the largest share of collected waste, followed by food wrappers, plastic cups and plates, plastic bags, and plastic bottle caps. Marine litter was sorted, documented, and turned over to proper channels through local waste management systems and partner agencies. This ensured that cleanup efforts were not only immediate but complete, leaving sites clean, restored, and responsibly managed end-to-end.

“This weekend showed what sustained, collective action can look like when communities come together for a shared purpose. Across our partner sites, we saw people take ownership of their coastal spaces — not just by removing waste, but by being part of a larger effort to protect and preserve them,” said MPIF President Melody del Rosario. “Shore It Up! has always been about working alongside communities, and this year’s turnout and results reflect how that shared responsibility continues to grow.”

Volunteers work together to clear coastal areas in Cordova, Cebu.

Community-Led Initiatives Across Sites

Across participating locations, local government units and communities extended the impact of Shore It Up! Weekend beyond its core activities through locally driven initiatives aligned with their approach to environmental stewardship. In Del Carmen, Siargao and Puerto Galera, activities included the opening and blessing of mangrove nurseries, supporting ongoing coastal restoration efforts. Del Carmen also brought together the community through festivities highlighting sustainable fashion and cultural expression.

Marine debris collected by ROAM during an underwater cleanup

In Marinduque, the observance of Earth Hour took on a more reflective tone through a candlelight commitment wall titled “Beyond Earth Hour: What Will I Change?” held at the provincial capitol grounds, followed the next day by the turnover of environmental support materials, including metal waste bins donated to barangay councils. Meanwhile, in Cordova, Cebu, local government offices, including the Public Information Office and tourism office, participated in a coordinated lights-off initiative during Earth Hour, highlighting the role of institutions in promoting environmental responsibility.

Volunteers sort and segregate collected waste along the shores of Tubbataha.

Beyond the Weekend: Turning Action into Lasting Impact

While the impact of Shore It Up! Weekend is visible in the volume of waste removed, its value extends beyond the cleanup itself. Global studies continue to highlight the scale and persistence of marine litter, particularly plastics, and the need for coordinated action from source to sea. At the community level, initiatives like Shore It Up! help translate awareness into participation, demonstrating how collective, localized efforts can contribute to broader environmental outcomes.

By working closely with coastal communities and local partners, MPIF continues to strengthen the foundation for sustained marine conservation. Through Shore It Up!, the Foundation supports not only immediate environmental restoration but also the long-term goal of protecting biodiversity, sustaining livelihoods, and encouraging responsible stewardship of the country’s coastal resources.

Driving Impact Across the Sustainable Development Goals

Community volunteers gather in Puerto Galera for the coastal cleanup initiative.

Aligned with Gabay Kalikasan, one of the MVP Group’s Gabay Advocacies for a Sustainable Philippines, Shore It Up! actively supports these United Nations Sustainable Development Goals through its integrated, community-driven approach to environmental conservation.

Shore It Up! Weekend demonstrates how a single, coordinated initiative can advance multiple Sustainable Development Goals in tandem. By mobilizing communities to manage waste and protect shared spaces, the initiative contributes to more sustainable and resilient communities (SDG 11), while its focus on coastal and marine protection supports life below water (SDG 14).

Volunteers from ROAM Mabini following an underwater cleanup effort

Mangrove planting and ecosystem restoration efforts further strengthen life on land (SDG 15) and enhance natural defenses against climate risks (SDG 13). Central to these efforts is the collaboration among local governments, communities, and partner organizations, highlighting the role of partnerships (SDG 17) in driving long-term environmental impact.

 

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Pakistan prepares to host peace talks as Iran accuses US of ground assault plans

Emergency personnel work at the site of a strike on a residential building, amid the US-Israeli conflict with Iran, in Tehran, Iran, Mar. 16, 2026.—via REUTERS/MAJID ASGARIPOU

ISLAMABAD/TEL AVIV — Pakistan said on Sunday it was preparing to host “meaningful talks” to end the conflict over Iran in coming days even though Tehran said it is ready to respond if the United States moves in with soldiers on the ground.

Speaking after talks between regional foreign ministers, Pakistan’s Foreign Minister Ishaq Dar said they had covered possible ways to bring an early and permanent end to the war in the region as well as potential US-Iran talks in Islamabad.

“Pakistan will be honored to host and facilitate meaningful talks between the two sides in coming days, for a comprehensive and lasting settlement of the ongoing conflict,” he said. It was not immediately clear whether the US and Iran had agreed to attend.

The US State Department and the White House did not immediately respond to requests for comment on potential talks in Pakistan.

Complicating Pakistan’s bid are the maximalist positions set out by the United States, Israel, and Iran on what it would take to end the conflict.

Iran’s parliament speaker Mohammad Baqer Qalibaf earlier accused the US of sending messages about possible negotiations while at the same time planning to send in troops, adding that Tehran was ready to respond if US soldiers were deployed.

“As long as the Americans seek Iran’s surrender, our response is that we will never accept humiliation,” he said in a message to the nation.

REGIONAL POWERS PROPOSE PLANS TO REOPEN STRAIT OF HORMUZ
Initial discussions between Pakistan, Saudi Arabia, Turkey, and Egypt had focused on proposals to reopen the Strait of Hormuz to shipping, sources familiar with the matter said.

Iran’s effective blockade of oil and gas shipments through the strait since the US and Israel began attacking the country on February 28 is spreading economic pain around the world.

As the conflict entered its second month, it showed no signs of slowing. Israel’s military said it had launched over 140 air strikes on central and western Iran, including Tehran, over the 24 hours to Sunday evening, hitting ballistic missile launch sites and storage facilities, among other targets.

Iranian state media reported that strikes had hit Mehrabad airport and a petrochemical plant in the northern city of Tabriz.

The director of the World Health Organization said Israel’s expanding military operations in southern Lebanon had resulted in the death of “yet another” health worker after 51 had already been killed. Israel says Iran-backed Hezbollah militants use medical facilities for cover, which the group denies.

A chemical plant in southern Israel near the city of Beer Sheva was hit by a missile or missile debris as Israel fended off multiple salvos from Iran, prompting official warnings to the public to stay away due to “hazardous materials”.

Another missile hit open ground near homes in Beer Sheva, located near several military bases, injuring 11 people.

The war has killed thousands of people and hit countries across the Middle East: major aluminium plants in Bahrain and the United Arab Emirates were damaged by air strikes over the weekend.

The UAE is seeking reparations from Iran for attacks on civilians and vital facilities and guarantees to prevent any repetition, an adviser to the president said.

Yemen’s Iran-aligned Houthis joined the conflict on Saturday, launching their first attacks on Israel and raising the prospect they could target and thus block a second key shipping route, the Bab el-Mandeb Strait. Israeli authorities said on Sunday that they had intercepted two drones launched from Yemen.

US MARINES START ARRIVING IN MIDDLE EAST
Washington has dispatched thousands of Marines to the Middle East, with the first of two contingents arriving on Friday aboard an amphibious assault ship, the US military has said.

The Washington Post quoted US officials as saying the Pentagon was preparing for weeks of ground operations in Iran, adding that it was not yet clear if President Donald Trump would approve such plans.

Reuters has reported that the Pentagon has considered military options that could include ground forces.

Mr. Trump faces a stark choice between seeking a negotiated exit or a military escalation that risks a protracted crisis that would likely weigh further on his already low approval ratings.

Washington said last week it had offered a 15-point ceasefire plan, with a proposal to reopen the Strait of Hormuz and restrict Iran’s nuclear program, but Tehran has rejected the proposal and put forward alternatives of its own.

ISRAEL HITS DOZENS OF TARGETS ACROSS IRAN
An Israeli official said Israel would continue carrying out strikes against Iran on what were described as military targets, adding there was no intention to scale back the campaign ahead of any possible talks between Washington and Tehran.

A building housing Qatar’s Al-Araby TV in Tehran was hit on Sunday, the semi-official Mehr news agency reported.

“The missile hit. The ceiling and everything fell on our heads. … There was no military target here,” said Al-Araby camera operator Mohammadreza Shademan.

The International Atomic Energy Agency said on Sunday that Iran’s heavy water production plant at Khondab, which the country reported had been attacked on Friday, had suffered severe damage and is no longer operational. The installation contains no declared nuclear material, the UN nuclear watchdog added in a social media post on X.

The increasingly unpopular war has weighed on Mr. Trump’s Republican Party. Demonstrators took to city streets across the US on Saturday in protests against the conflict.

US political figures offered sharply different assessments on the duration of the conflict and its aims.

“It is going to be a matter of weeks when all of the objectives will be carried out,” Republican Senate candidate Andy Barr said on the “Fox News Sunday” program. “This is not going to be an occupation of Tehran.”

But Democratic lawmakers said the strategy was failing, citing US casualties and Iran’s ongoing attacks on nearby regions. “This president is pushing us further and further into a conflict with no foreseeable off-ramp,” Senator Cory Booker, a New Jersey Democrat, told NBC’s “Meet the Press.” — Reuters

Gov’t eyes offshore issuance in Q2

US dollar banknotes are seen in this illustration taken on March 24. — REUTERS

THE GOVERNMENT is looking at tapping the offshore bond market in the second quarter, the Bureau of the Treasury (BTr) said.

“We still have $2.5 billion left in the borrowing program, so we are looking at whether we issue (in the) second quarter or third quarter,” National Treasurer Sharon P. Almanza told reporters on the sidelines of an event on Thursday.” There is a possibility for a second-quarter issuance.”

In January, the government raised $2.75 billion from a triple-tranche dollar bond issuance. It generated $500 million from the 5.5-year bonds at a coupon rate of 4.25%; $1.5 billion from the 10-year paper at a coupon rate of 5%; and $750 million from the 25-year papers at a 5.75% coupon.

Ms. Almanza said US Treasury yields have remained relatively stable compared with local rates, creating a less volatile environment.

Meanwhile, the BTr is hoping the central bank’s off-cycle policy move on March 26 will help calm markets and drive demand for government securities in the coming quarter.

This follows the drop in bids and spike in yields in March after the US-Israeli war on Iran began. 

The Bangko Sentral ng Pilipinas (BSP) kept its policy rate unchanged at 4.25% during a surprise off-cycle meeting last week, amid growing concerns over the impact of the Middle East war on the economy.

BSP Governor Eli M. Remolona, Jr. had said they decided to stand pat as their growth outlook remains clouded and as emerging inflationary risks prove supply-driven, “for which monetary policy has limited effectiveness.”

The BSP now expects headline inflation to average 5.1% this year from 3.6% previously. If realized, the headline print would breach its 2%-4% target.

Ms. Almanza said that a large maturity in April worth about P200 billion could add liquidity to the market and drive demand for government securities.

“We have a maturity in April. So, hopefully, those funds will be reinvested,” she said.

The government is looking to borrow up to P784 billion from the domestic debt market in the second quarter or up to P364 billion via Treasury bills and up to P420 billion through Treasury bonds.

Ms. Almanza noted that the borrowing plan for the second quarter includes a mix of short-term and medium-term securities.

“We’re combining the long with the short. And then we’re reducing the volume for the longer tenors,” she said.

Ms. Almanza also said foreign participation in the government securities market could surge as soon as the country’s re-entry into JPMorgan Chase & Co.’s Government Bond Index-Emerging Markets (GBI-EM) is confirmed by the first week of April.

“They said that the investors don’t wait for the actual inclusion. So, after the announcement, funds will [start coming in already],” she said.

In September last year, Philippine peso-denominated government bonds (RPGB) were tagged as “Index Watch Positive,” which is the final review phase for the bonds’ potential inclusion in JPMorgan’s GBI-EM.

JPMorgan’s GBI-EM tracks the performance of sovereign and quasi-sovereign bonds issued by emerging market countries. The country’s inclusion will need to be approved by a certain percentage of investors reviewing the index.

The Philippines’ global peso notes were removed from the GBI-EM in January 2024 due to illiquidity. Potential inclusion in the index are RPGBs issued from 2023 with tenors up to 20 years. — A.M.C.Sy

Prolonged Mideast war could dampen banana, pineapple exports

A vendor picks from a pile of bananas at a wholesale market in Manila, Philippines, July 10, 2025. — REUTERS

By Vonn Andrei E. Villamiel, Reporter

DESPITE a strong year-to-date growth in Philippine banana and pineapple exports, the Department of Agriculture (DA) said a prolonged Middle East war threatens to disrupt the country’s outbound shipments.

“I think there would be a [negative] effect on our exports, considering the situation. Hopefully, the effects won’t last long,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. told BusinessWorld in a WhatsApp message.

Trade disruptions due to the fighting in the Persian Gulf risk affecting gains achieved in the two sectors.

According to preliminary data from the Philippine Statistics Authority, although fresh banana shipments slipped by 5.1% in February, year-to-date exports grew by 7.6% to $244.68 million from $227.31 million in the same two-month period in 2025.

Pineapple exports and related products also surged 45.5% to $188.05 million as of February from $129.21 million in the same period last year.

Bananas and pineapples rank as the ninth and 10th largest export commodities, respectively, and the second and third most valuable in the agriculture sector after coconut oil.

The concern is heightened as Iran and other Middle Eastern countries are key markets for Philippine fruit shipments.

In 2025, Iran was the largest buyer of Philippine bananas in the Middle East, importing $97.53 million worth of the region’s nearly $200 million in shipments.

Other major markets for bananas in the Middle East include Saudi Arabia ($62.71 million), the United Arab Emirates ($13.12 million), Iraq ($6.19 million), Qatar ($5.12 million), and Bahrain ($3.78 million).

Together, the region accounted for more than 11% of the Philippines’ total fresh banana exports in 2025.

For fresh pineapples, the United Arab Emirates was the top Middle Eastern market, importing $15.83 million, followed by Iran with $11.94 million and Saudi Arabia with $2.62 million. The region accounted for almost 6% of the country’s total pineapple exports in 2025.

Mr. Laurel said the DA is monitoring the situation closely and will assist the private sector in the event of a prolonged shipping disruption.

“If there are market disruptions, the private sector will surely try to find other channels to sell their goods, and we will be assisting them. [We’ll constantly try] to look and assist in all possible ways,” he said.

Mr. Laurel earlier told reporters that the country’s banana sector can leverage their geographic proximity advantage over South American suppliers to redirect shipments to traditional East Asian markets like Japan.

“The main factor that could affect banana exports is freight costs. Because Japan is relatively close, we may have a slight advantage over South American suppliers,” he said on the sidelines of a Senate hearing last week.

Mr. Laurel said that, despite lower tariffs for South American suppliers, the Philippines maintains a competitive edge in banana exports due to shorter shipping distances and lower freight costs.

Japan is the country’s biggest market for fresh bananas, with exports valued at $920.49 million in 2025. It is also the Philippines’ second-biggest market for fresh pineapple in East Asia, with shipments at $174 million.

High fuel costs, weak peso force many Filipinos to trim Holy Week travel plans

Passengers crowd Ninoy Aquino International Airport Terminal 3 in Pasay City, Jan. 29, 2026. — PHILIPPINE STAR/NOEL PABALATE

By Beatriz Marie D. Cruz, Reporter

DANA D. CASTILLO had planned to shop for clothes and accessories when she travels to China over the Holy Week break. Instead, the 27‑year‑old government employee is now budgeting only for food, sightseeing and a few souvenirs.

“The crisis has compromised my target pocket money for traveling. I have to adjust my planned expenses for my trip,” she told BusinessWorld by telephone.

Ms. Castillo, who is pursuing a master’s degree in Laguna while paying her own tuition, said higher daily costs have left less room for discretionary spending. Her commute to school has gone up by P20 since the crisis began.

“Nowadays, you can still travel, but you won’t be able to enjoy it because you have to limit your spending,” she said in mixed English and Filipino.

Her experience reflects a broader shift among Filipino travelers as higher fuel prices and a weaker peso squeeze household budgets ahead of one of the country’s busiest travel periods.

Holy Week typically sends millions of Filipinos to provinces or overseas destinations, driven by religious observance, family visits and leisure travel. This year, those movements come as oil prices rise amid war in the Middle East, pushing up transport and living costs and eroding purchasing power.

Passenger spending patterns already show the strain. While Filipinos are still traveling, they are cutting back on nonessential purchases, analysts said.

“A weaker peso and higher oil prices hit travel from both ends as fares go up while purchasing power goes down,” Robert Dan J. Roces, an economist at SM Investments Corp., said in a Viber message.

“The squeeze is most visible in middle‑income households since they still travel, but may adjust by shortening trips, cutting extras, or even choosing closer destinations rather than canceling altogether,” he said.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said caution is shaping Holy Week behavior.

“Households may still travel during Holy Week due to its cultural importance, but they are more likely to shorten trips, choose cheaper options, or reduce spending on leisure activities,” he said in a Viber message.

Industry executives say travel plans for this year’s break are unlikely to change dramatically because many bookings were made weeks earlier.

“Fuel prices have just started moving, and most Filipinos have already made their bookings,” Alfred Lay, director for hotels, tourism and leisure at Leechiu Property Consultants, said in a Viber message. “Holy Week travel is just too deeply ingrained in our culture to cancel lightly.”

The bigger concern is how long higher costs will persist if geopolitical risks remain unresolved, Mr. Lay said.

TIGHTER BUDGETS, SHORTER TRIPS
The peso weakened to a record low of P60.55 against the dollar on March 27, reflecting the currency’s sensitivity to oil price shocks. Fuel prices in Metro Manila continued to surge last week, with diesel reaching as much as P144.20 a liter and gasoline P102.50 a liter. Kerosene prices have risen to about P166 a liter.

Those increases have filtered through the transport sector. Jet fuel prices rose 12.6% week on week to $197 per barrel as of March 29 and surged 118.8% from a year earlier, according to the International Air Transport Association.

Airfares are poised to rise further after the Civil Aeronautics Board raised the passenger fuel surcharge to Level 8 for April, the highest in almost two years. At that level, airlines may charge fuel surcharges ranging from P253 to P787 for domestic flights. International flights from the Philippines may carry surcharges of P835.05 to P6,208.98, depending on distance.

“Even if the Middle East situation is resolved tomorrow, it would still take months for fuel costs to come down meaningfully — and the airline industry doesn’t just flip a switch,” Mr. Lay said.

Higher fuel prices are also weighing on land transport. NLEX Corp., a unit of Metro Pacific Tollways Corp., projects a 1% decline in traffic volume this year due to elevated fuel prices.

The Parañaque Integrated Terminal Exchange last week warned of possible bus shortages as some operators limit trips to reduce fuel consumption.

The oil shock, which has strengthened the dollar, is driving higher costs across airfares, accommodation, fuel surcharges and food, said Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co.

“For ordinary Filipinos, that means tighter budgets or shorter trips, even for nearby destinations,” he said in a Viber message.

Those pressures are already reshaping spending behavior. Room upgrades, tour packages and higher‑end dining are among the first casualties as travelers pare back, Mr. Lay said.

Hotels are responding selectively. Joey Roi H. Bondoc, director and head of research at Colliers Philippines, said some local hotels have offered discounts of up to 50% to attract guests.

“Previously, if Holy Week was easily a peak period, we might not see that at least this year given increasing gas prices,” he said by telephone.

Travelers are being urged to plan carefully. “Plan early, lock in promos, and be flexible,” Mr. Ravelas said.

“Travelers shouldn’t expect relief just because the news cycle moves on,” Mr. Lay said. “Layer in the peso weakness and broader inflation, and I’d say operators should be planning for a budget-conscious traveler well into the rest of the year.”

For some, that adjustment is already under way. Arthur H. Bo, a 25‑year‑old marketing professional based in Manila, opted to spend Holy Week in Pampanga instead of flying to Cebu.

Traveling by land is cheaper, he said. Mr. Bo chose to stay in an Airbnb rather than a hotel and plans to curb food spending by bringing packed meals or eating at fastfood chains.

Two weeks before the trip, he scaled it back to an overnight stay from the three days he had originally planned.

“Usually, when I travel, I have wiggle room to spend,” he told BusinessWorld by telephone. “But since the crisis happened, I’ve been forced to be mindful of my budget.”

Business confidence improves in February before Middle East conflict — BSP survey

High-rise office and residential buildings dominate the skyline of the central business district in Taguig. — PHILIPPINE STAR/RYAN BALDEMOR

By Aaron Michael C. Sy Reporter

BUSINESSES were more optimistic in February as they expected strong consumer demand and better economic conditions, results of the Bangko Sentral ng Pilipinas’ (BSP) monthly business expectations survey (BES) showed.

The central bank’s BES for February showed that businesses had an overall current-month confidence index (CI) of 8.2%, picking up from the 0.9% seen in January.

A positive CI shows that more respondents are optimistic than pessimistic.

“Respondents attributed their more optimistic sentiment in February 2026 to: higher income and sales supported by stronger demand for goods and services, better domestic economic conditions, including higher growth prospects and stable inflation, and improved investor confidence on the back of higher public infrastructure spending and sustained governance reforms,” the BSP said.

The February 2026 BES was conducted from Feb. 5-28, before the onset of the US-Israeli war on Iran.

“The sustained recovery in business confidence and stable inflation expectations will therefore depend on how long the (Middle East) conflict lasts and how it affects the domestic economy,” the central bank said.

The survey also showed businesses were more optimistic for the second quarter and the next 12 months.

The confidence index for the next three months rose to 37.4% from 33.3% previously, as businesses anticipate “firmer consumer demand during the summer season, favorable weather conditions, higher public works spending, stable inflation, and recovery in investor confidence.”

At the same time, the CI for the year ahead went up to 51.1% from 38.6% previously, driven by expectations of stronger demand during the peak season and Christmas holidays, higher productivity and efficiency in business operations, and better economic prospects.

Meanwhile, the BSP survey showed firms expect a “less tight cash position but tighter credit access” in February.

The financial condition index, which refers to a firm’s general cash position considering the level of cash and other cash items and repayment terms on loans, improved but remained in negative territory at -15.2% in February from -19.2% in January.

In contrast, the credit access index turned more negative to -4% in February from -0.6% in the prior month. This refers to the firm’s external environment, such as the availability of credit in the banking system and other financial institutions.

The BSP survey also showed the average capacity utilization for both the industry and construction sectors slipped to 67.2% in February from 69.6% in January.

“The decline was mainly driven by an increase in the number of industry firms operating at medium capacity (60-69%) and a decrease in the number of firms operating at high capacity (80-100%),” the BSP said.

According to respondents, business activity was limited due to stiff domestic competition, insufficient demand, and high interest rates.

Meanwhile, firms had a better jobs outlook in the next quarter and the next 12 months.

The employment outlook for the next three months went up to 27.2% from 11.3% previously, while the outlook for the year ahead rose to 30% from 23.3% previously.

“However, industry sector expansion may ease over the same period. The share of businesses in the industry sector with expansion plans for May 2026 and the next 12 months declined from 14.1% and 24.3% to 11.6% and 14.2%, respectively, the BSP said.

PESO, INFLATION OUTLOOK
The BSP survey also showed businesses expect the peso to appreciate against the US dollar in the near term but expect it to depreciate over the next 12 months.

Firms saw the local unit averaging P58.68 per dollar for February, P58.76 for May, and P58.94 over the next 12 months.

In February, the peso appreciated by 1.195 or by 2.03% to close at P57.665 on Feb. 27 from its P58.86 finish on Jan. 30.

However, the peso slumped against the US dollar in March, mainly due to global pressures — higher oil prices, stronger US dollar and skittish investors amid the Middle East conflict. On Friday, the local unit dropped to a new record low at P60.55, weakening by 32 centavos from its P60.23 finish on Thursday, Bankers Association of the Philippines data showed.

At the same time, the BSP said business inflation expectations are still “well-anchored.”

Firms saw inflation averaging 2.3% in February and picking up to 2.5% in May and 2.7% in the next 12 months.

“These expectations fall below the BSP’s 3% inflation target for 2026 but remain within the tolerance range of ±1 percentage point around the target,” the central bank said.

The consumer price index rose 2.4% in February from a year earlier, making it the fastest print since 2.9% in January 2025. This brought the average inflation to 2.2% in the January-to-February period.

Last week, the BSP raised its inflation forecast for 2026 to 5.1% to 3.6% previously, amid the Middle East conflict.

77 years of insurance stewardship

The Insurance Commission held it’s 77th anniversary celebration last March 16. — Credits to www.insurance.gov.ph

The Philippines’ insurance industry is, perhaps, one of the country’s bright spots, with its growth projected to outpace most of its Asian counterparts and the overall global trajectory.

According to the Germany-based insurance firm Allianz’s Global Insurance Report, the country’s insurance sector is poised to grow by 9.2% between 2025 and 2035, eventually amounting to more than 21 billion euros. Comparatively, the global average growth currently stands at 5.3% while in areas such as Western Europe (3.7%), North America (4.7%), and Japan (2.5%), also lag behind the country’s insurance sector.

Much of this growth can be attributed to the work of the Philippines’ Insurance Commission (IC). Established in 1949, the attached agency of the Department of Finance (DoF) is tasked to strengthen and regulate the Philippines’ pre-need companies while also implementing prudent and progressive regulatory and supervisory policies at par with international standards.

In line with this mandate, the commission’s core objectives center on advancing the insurance industry’s development, ensuring effective regulation, and protecting consumers. It aims to foster sustained growth and financial stability across insurance, pre-need, and health maintenance organizations (HMOs), while elevating the professionalism of these sectors and promoting greater public awareness and understanding. Additionally, it seeks to build a robust and reliable national insurance market and to uphold the rights and interests of policyholders, pre-need plan holders, and HMO members.

This year, the IC celebrates its 77th year, crowned with a strong performance in 2025 as total insurance premiums topped P500 billion for the first time in the country’s history, signaling that more Filipino families and businesses are more financially literate and are protecting themselves against unfortunate circumstances.

“Beyond the numbers, this milestone tells us something even more important. It reflects broader public participation and a growing awareness among Filipinos that insurance is an essential tool for financial protection. This also reaffirms the industry’s role as a cornerstone of economic resilience,” Finance Secretary Frederick D. Go said in his keynote speech at the IC’s 77th anniversary celebration last March 16

Building on this milestone, the industry’s expanding reach is further reflected in its growing financial strength and contribution to the broader economy. Last year, the insurance industry’s total assets had reached P2.66 trillion, with a significant portion allocated to government securities and local investments that contribute to infrastructure projects and broader national development goals.

Alongside this, the industry’s impact is also evident in the vital support it provides to healthcare access and delivery across the country. In 2025, the HMO sector disbursed P12.10 billion in healthcare benefits and claims, underscoring its ongoing role in expanding access to quality medical services for Filipinos.

Complementing these gains, the pre-need sector likewise demonstrated steady growth, further strengthening the industry’s role in long-term financial planning for Filipino families. The sector recorded total premium income of P23.94 billion in the fourth quarter of 2025, alongside 895,679 plans sold by the end of the year — reflecting its continued support in helping families plan ahead for education and memorial needs with increased assurance.

A cyber-secure commission

Another recent achievement by the IC is the bolstering of its cybersecurity capabilities along with other government-backed financial institutions. In March this year, the IC, Bureau of the Treasury (BTr), Government Service Insurance System (GSIS), Social Security System (SSS), Philippine Deposit Insurance Corp. (PDIC), and the Landbank of the Philippines (LANDBANK) signed a memorandum of agreement (MoA) on the “Shared Cyber Defense Solution for the Insurance Cluster.”

The MoA is aimed at boosting each agency’s ability to detect, prevent, and respond to cyber incidents through various methods such as advanced threat monitoring, improved security analytics, and strengthened defensive controls.

“This agreement strengthens the government’s ability to protect the insurance industry from cyberattacks, ensuring that Filipinos’ hard-earned savings are secure. By safeguarding these critical financial resources, the government is not only protecting the stability of the insurance sector but also reinforcing public trust and confidence in the system, encouraging more Filipinos to rely on insurance as a tool for financial security,” Mr. Go was quoted as saying.

Under the agreement, LANDBANK will act as the procurement agent and handle the bidding and acquisition of the cyber defense system. The participating agencies will define the technical requirements and supervise implementation through a Joint Technical Working Group. Meanwhile, an Interagency Oversight Committee, made up of chief information officers and IT security officials, will track cybersecurity developments and recommend appropriate security measures.

“Cybersecurity is a critical component of institutional resilience in today’s increasingly digital environment. Through this collaboration, the Insurance Commission is strengthening its capacity to protect critical systems and safeguard sensitive information against evolving cyber threats,” Insurance Commissioner Reynaldo A. Regalado said a statement.

Sustained prudence

Aside from strengthening its operational capabilities, the commission has also maintained a strong track record in financial accountability and transparency. For the year 2024, the IC received its seventh “unmodified opinion” over the last decade from the Commission on Audit (CoA).

An “unmodified,” or “unqualified,” opinion is issued when auditors determine that the financial statements are fairly presented and free from any material misstatements, whether caused by error or fraud.

“In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Insurance Commission as at December 31, 2024, and its financial performance, cash flows, changes in net assets/equity, comparison of budget and actual amounts for the year then ended, and notes to the financial statements, in accordance with International Public Sector Accounting Standards (IPSASs),” CoA State Auditor V Angelita C. Lomentigar stated in the Independent Auditor’s Report.

“This receipt of the ‘unmodified opinion’ from the CoA reflects the Commission’s traditions of transparency, accountability, and fiscal prudence. As stewards of public funds, it is our duty to ensure that the agency’s resources are managed and spent effectively and in alignment with our regulatory priorities,” Mr. Regalado said in another statement.  

The IC’s sustained growth, strong governance, and commitment to getting better continue to reinforce the resilience of the country’s thriving insurance sector. As it moves forward, their efforts position the industry to better serve Filipinos while supporting broader economic stability and development for years to come. — Jomarc Angelo M. Corpuz

Strengthening financial resilience through insurance

Upklyak | Freepik

The Philippine insurance industry closed 2025 on a historic note, marked by strong premium growth, rising assets, and improved penetration.

More than a year of recovery, 2025 became a period of consolidation — where gains in awareness, digitalization, and economic activity translated into measurable expansion. This performance reflects a convergence of macroeconomic recovery, regulatory support, and shifting consumer behavior. As households and businesses recalibrated their financial priorities in the aftermath of recent crises, demand for protection products strengthened across segments.

At a glance, the numbers tell a clear story: insurance is becoming more embedded in the financial lives of Filipinos, though structural gaps remain. The result is an industry that is not only growing in scale, but also evolving in function.

A year for premiums

The most defining milestone of 2025 was the industry’s breach of the P500-billion mark in total premiums — a first in its history.

Data from the Insurance Commission show that total premiums reached approximately P502.64 billion, reflecting a 14% increase from P440.53 billion in 2024.

This growth was not isolated to a single segment. Both life and non-life insurance, alongside mutual benefit associations (MBAs), contributed to the expansion. Earlier in the year, premiums had already reached P372 billion by the third quarter, indicating sustained momentum throughout 2025.

The upward trajectory reflects a broader shift: insurance is increasingly viewed not merely as a discretionary financial product but as an essential safeguard against uncertainty. Rising demand for health, life, and property protection (especially in the aftermath of the pandemic) has helped drive this expansion.

Sector breakdown

The life insurance sector remained the dominant driver of growth in 2025. By third quarter alone, life insurance premiums had increased by nearly 13.8% year-on-year, supported by both traditional and variable life products.

Non-life insurance, meanwhile, showed robust gains particularly in property and motor segments. In the first half of 2025, net premiums written in the non-life sector rose by 20.48% to P39.63 billion, reflecting increased demand for asset protection and business continuity coverage.

The health insurance segment also posted strong performance, with net income more than doubling in the first half of the year due to higher revenues. This suggests a continued shift toward health-related financial protection, a trend accelerated by recent public health challenges.

Together, these segments illustrate a diversified growth pattern — one that is not overly reliant on a single product line but instead reflects broad-based demand across risk categories.

Rising assets and financial strength

Beyond premiums, the industry’s balance sheet indicators also improved. By the end of the third quarter of 2025, total assets reached approximately P2.62 trillion, up 4.73% from the previous year.

Invested assets — critical for long-term solvency and claims-paying ability — also expanded, reaching over P2.3 trillion. These funds are typically allocated to government securities, corporate bonds, and infrastructure-linked investments, positioning the insurance sector as both a financial intermediary and a contributor to national development.

Net worth growth further reinforced industry stability, rising by over 8% year-on-year during the same period.

These indicators underscore a key point: the insurance sector’s expansion is not merely volume driven but is supported by improving financial fundamentals.

Profitability and claims

Profitability across segments also showed positive movement. In the life insurance sector, net income grew by over 12% in the first quarter of 2025, signaling improved operational efficiency and premium inflows.

At the same time, claims and benefit payouts remained substantial. Life insurers alone disbursed approximately P121.9 billion in benefits during the year, while non-life insurers paid around P34.1 billion.

This dual trend, rising profitability alongside high claims payouts, highlights the industry’s core function: absorbing risk while maintaining financial viability.

Rather than constraining growth, higher claims activity demonstrates the sector’s role as a stabilizer during times of need.

Awareness, digitalization, and risk exposure

Several factors underpinned the industry’s strong performance in 2025.

First, heightened risk awareness (particularly following the COVID-19 pandemic) continued to drive demand for life and health insurance. Consumers are increasingly prioritizing financial protection as part of long-term planning.

Second, digital transformation has improved accessibility. Insurers have expanded online distribution channels, streamlined onboarding processes, and leveraged data analytics to tailor products. These innovations have lowered entry barriers, particularly for younger and tech-savvy consumers.

Third, economic recovery and asset growth have supported demand for non-life insurance products such as motor and property coverage. As businesses expand and household asset ownership rises, so too does the need for protection.

Finally, climate-related risks have reinforced the importance of insurance. In a country highly exposed to natural disasters, insurance serves as a critical tool for resilience both at the individual and systemic levels.

Bridging the protection gap

Despite strong performance, the industry continues to face structural challenges.

Insurance penetration, while improving, remains below global averages. Only 28% of Filipinos have life insurance, with low-income, informal sectors, and remote areas remain heavily uninsured.

Affordability and financial literacy are key barriers. Many Filipinos still perceive insurance as complex or inaccessible, underscoring the need for simpler products and more effective public education.

Additionally, climate risk poses a growing challenge. As extreme weather events become more frequent, insurers must balance affordability with sustainability, ensuring that risk pricing remains viable without excluding vulnerable populations.

Regulatory oversight will also need to evolve in response to digital innovation, particularly in areas such as cybersecurity, data privacy, and emerging distribution models.

Sustaining momentum

Looking ahead, the Philippine insurance industry is positioned for continued growth, supported by favorable demographics, rising incomes, and increasing awareness of financial protection.

Projections suggest that demand will remain strong, particularly in life and health insurance. At the same time, non-life segments are expected to benefit from infrastructure development and expanding asset bases.

However, sustaining this momentum will require a dual focus: deepening market penetration while maintaining financial stability. This means expanding access to underserved sectors, enhancing product innovation, and strengthening regulatory frameworks.

Ultimately, 2025 is one of progress, but also of potential for insurance. The industry has demonstrated its capacity to grow, adapt, and deliver value. The next challenge, and an ongoing one, lies in ensuring that this growth translates into a broader, more inclusive protection for all Filipinos. — Krystal Anjela H. Gamboa

DoTr in talks with NNIC on possible NAIA fee relief

NNIC is composed of Philippine conglomerate San Miguel Corp.’s infrastructure arm, San Miguel Holdings Corp., together with RMM Asian Logistics, Inc., RLW Aviation Development, Inc., and Incheon International Airport Corp. — NEWNAIA.COM.PH

THE DEPARTMENT of Transportation (DoTr) said it is in talks with the operator of Ninoy Aquino International Airport (NAIA) on possible passenger relief measures, including lower landing, takeoff, and terminal fees.

“We need to discuss this. For now, the reduction of fees are for CAAP-operated airports only,” Transportation Acting Secretary Giovanni Z. Lopez said in an interview last week.

The Manila International Airport Authority (MIAA) said the matter is under discussion, noting that the government cannot readily amend the concession agreement with NAIA’s private operator.

New NAIA Infra Corp. (NNIC), the private operator of the country’s main gateway, took over the operations and management of NAIA in 2024. It includes San Miguel Corp.’s infrastructure unit, San Miguel Holdings Corp., along with RMM Asian Logistics, Inc., RLW Aviation Development, Inc., and Incheon International Airport Corp.

“It is still the same, we are still talking to them. With respect to the private operators, because there is an existing contract, and under our constitution there is a non-impairment of existing contracts, we will see,” Mr. Lopez said.

Last week, the DoTr said it will implement adjusted airport-related charges, including terminal fees and landing and takeoff fees, for airports operated by the Civil Aviation Authority of the Philippines (CAAP), starting April 1, amid rising fuel prices.

Passenger service charges, or terminal fees, for departing passengers will be reduced by up to P200 starting April 1 for three months, the DoTr said.

The measure aims to cushion the expected rise in airfares after the Civil Aeronautics Board raised the passenger fuel surcharge to Level 8 for the first half of April, the highest level in two years.

The DoTr also ordered a reduction in navigation charges, including landing and takeoff fees, by up to P5,000 for CAAP-run airports.

Landing and takeoff fees are charges for the use of airport facilities and services during aircraft landings and takeoffs. — Ashley Erika O. Jose

Cebu Pacific secures jet fuel supply until June

CEBUPACIFICAIR.COM

BUDGET CARRIER Cebu Pacific (CEB) said it has secured enough jet fuel supply to support its domestic and international operations until June.

“As developments in parts of the Middle East continue to evolve and impact global fuel supply, Cebu Pacific understands the importance of providing clarity and reassurance to its passengers,” CEB said in a media release on Sunday.

The airline said it will continue working with suppliers and industry participants to ensure sufficient fuel supply in the coming months and maintain stable operations.

“Passengers can continue to travel with confidence, as Cebu Pacific remains committed to providing reliable and affordable air travel,” it added.

Last week, CEB Chief Executive Officer Michael B. Szucs said the company is well positioned to withstand challenges, citing its commercial and financial resilience and noting that the majority of its flights are domestic.

“Firstly, 80% of our flights and 70% of seats are domestic, where the impact of higher fuel prices on these shorter sectors is significantly less than the price rises required on long haul sectors,” he said, adding that most of its domestic seats are on trunk routes and only 30% are leisure-driven.

CEB also said about 72% of its fleet consists of Airbus NEO aircraft, which are designed to improve fuel efficiency and help optimize fuel use.

Data from the Department of Energy showed that, as of March 20, the Philippines had enough available jet fuel supply for 38 days.

According to the International Air Transport Association, jet fuel prices rose 12.6% week on week to $197 per barrel as of March 20. On a yearly basis, prices increased by 118%, based on data from the airline trade group.

However, despite the company’s outlook, the airline announced flight changes last week affecting both its domestic and international networks.

The airline said it is adjusting its network by reducing flight frequencies and canceling selected routes due to the ongoing Middle East conflict.

CEB has canceled flights to and from Dubai until April 20. The airline also suspended five routes — Davao-Bangkok, Iloilo-Bangkok, Iloilo-Singapore, Singapore-Iloilo, and Clark-Hanoi-Clark — until October 2026.

It also reduced weekly services for selected domestic and international routes from April to October, including Cebu-Singapore, Singapore-Cebu, Manila-Jakarta, Jakarta-Manila, Manila-Kuala Lumpur, Kuala Lumpur-Manila, Manila-Melbourne-Manila, and Manila-Sydney-Manila.

For 2025, Cebu Air, Inc., the listed operator of CEB, reported a more than twofold increase in net income to P12.3 billion, driven by higher passenger revenues.

President Ferdinand R. Marcos, Jr., earlier said that aircraft grounding may be possible amid tight fuel supply and prices nearing $200 per barrel. — Ashley Erika O. Jose

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