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Stocks climb further before BSP policy decision

REUTERS

PHILIPPINE STOCKS climbed further on Thursday on continued bargain hunting and as the market positioned before the Bangko Sentral ng Pilipinas’ (BSP) policy announcement at the trading session’s close.

The Philippine Stock Exchange index (PSEi) jumped by 1.14% or 69.06 points to close at 6,113.19, while the broader all shares index rose by 0.78% or 28.54 points to end at 3,647.73.

“The local market extended its rise this Thursday as investors continued with their bargain hunting,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “Investors also took positions while hoping for positive catalysts from the Bangko Sentral ng Pilipinas’ policy meeting.”

“Philippine shares were bought above the 6,100 mark with many investors keeping an eye out for the latest decision of the BSP, which came out right after trading,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.

The BSP’s policy-setting Monetary Board on Thursday kept the target reverse repurchase rate unchanged at 5.75%, contrary to market expectations of another cut.

The pause came following three consecutive 25-basis-point (bp) reductions since the BSP began its easing cycle in August 2024.

A BusinessWorld poll had 19 out of 20 analysts penciling in a fourth 25-bp cut at this week’s meeting amid steady inflation and weak economic growth.

“The Monetary Board noted that domestic growth prospects continue to be firm. However, uncertainty over global economic policies and their impact on the domestic economy has increased significantly,” BSP Governor Eli M. Remolona, Jr. said.

“On balance, uncertainty about the outlook for inflation and growth warrant keeping monetary policy settings steady. Before deciding on the timing and magnitude of further reductions in the policy interest rate, the Monetary Board deems it prudent to await further assessments of the impact of global policy uncertainty and the potential effects of the actual policies,” he said.

All sectoral indices ended higher on Thursday. Mining and oil surged by 2.69% or 200.41 points to 7,630.64; services increased by 2.6% or 50.79 points to 1,998.23; industrials went up by 1.81% or 154.49 points to 8,688.81; holding firms climbed by 1.09% or 55.88 points to 5,171.65; property rose by 0.13% or 3.03 points to 2,255.87; and financials inched up by 0.07% or 1.79 points to 2,256.11.

“Jollibee Food Corp. led the index, rallying 10.72% to P262.40. Bloomberry Resorts Corp. was at the tail end, falling 2.70% to P3.60,” Mr. Tantiangco said.

Value turnover increased to P6.08 billion on Thursday with 824.96 million shares changing hands from the P5.85 billion with 533.86 million issues traded on Wednesday.

Advancers outnumbered decliners, 116 versus 86, while 44 names ended unchanged.

Net foreign selling declined to P369.44 million on Thursday from P455.51 million on Wednesday. — R.M.D. Ochave

Sex education policy review backed

CEAP.ORG.PH

THE Catholic Educational Association of the Philippines (CEAP) backed a government-led review of Comprehensive Sexuality Education (CSE) policies, stressing the need for a balanced and inclusive approach that considers the autonomy of faith-based schools.

In a statement on Thursday, CEAP said it welcomed the initiative led by Education Secretary Juan Edgardo M. Angara to consult stakeholders on the policy’s implementation, emphasizing the importance of clear and well-grounded guidelines.

While acknowledging efforts to curb teenage pregnancies, CEAP raised concerns about potential overlaps with existing laws, including the Responsible Parenthood and Reproductive Health Act (Republic Act [RA] No. 10354) and the Magna Carta of Women (RA No. 9710).

The group cautioned against a standardized framework that could challenge the academic freedom and identity of Catholic schools.

“A one-size-fits-all curriculum may not fully reflect the cultural, religious, and institutional contexts of all schools,” it said. “Any reproductive health education program should allow flexibility, ensuring that schools can integrate faith-based perspectives while addressing students’ needs.” 

The group also underscored the role of parents as primary educators in their children’s moral and sexual development, urging policymakers to respect parental authority in any school-based sexuality education program.

In February 2024, Save the Children reported there was a 35% increase in teenage (girls aged 15 and below) pregnancies between 2021 and 2022. — Chloe Mari A. Hufana

Pueblo De Oro to provide skills training in Cagayan de Oro 

REAL ESTATE developer Pueblo de Oro Development Corp. (PDO) recently teamed up with the Technical Education and Skills Development Authority (TESDA) to help provide skills training for workers in the Metro Cagayan De Oro.

PDO’s corporate social responsibility arm, the ICCP Group Foundation, Inc. (IGFI), signed a memorandum of agreement (MoA) with TESDA enhancing the region’s workforce capabilities. This would also support PDOs existing projects, such as the Masterson Mile North, a luxury condominium complex, and a planned World Trade Center.

“The partnership focuses on meeting the needs of the construction sector and other industries while contributing to the development of Metro Cagayan de Oro,” PDO said in an e-mail statement.

The agreement also seeks to provide sustainable livelihood opportunities and support the region’s economic growth.

IGFI has previously worked with TESDA to provide manufacturing workforce development initiatives across Luzon.

The programs align with Industry 4.0, which seeks to leverage digital transformation and automation in the manufacturing and business processes.

These efforts are also expected to position Cagayan de Oro as a center for innovation and commerce, according to the property firm.

Pueblo de Oro is the residential development arm of Investment & Capital Corporation of the Philippines Group, which has business interests in financial services and property management. — Beatriz Marie D. Cruz

PDEA-9 destroys P331.2-M worth of seized drugs

COTABATO CITY — Government officials burned P331.2 million worth of crystal meth (shabu) in a power-generating plant in Aurora, Zamboanga del Sur on Wednesday.

The symbolic destruction of the 48.6 kilos of shabu and expired barbiturates and tranquilizers from different drug stores using an incinerator was led by Maharani Gadaoni-Tosoc, regional director of the Philippine Drug Enforcement Agency-9 (PDEA-9).

The drugs torched by authorities were seized in separate anti-narcotics operations in different cities and provinces in Region 9 in recent months.

In a message during the activity, Ms. Gadaoni-Tosoc expressed appreciation for the cooperation of the police and local officials with their anti-narcotics campaign in Region 9.

Zamboanga del Sur Rep. Divina Grace D. Yu and local officials in her province participated in the disposal of the shabu and expired state-regulated medicines that were turned over to PDEA-9 by legitimate suppliers in Region 9. — John Felix M. Unson

Trike driver, 2 kids dead in Dipolog City highway mishap

COTABATO CITY — Three individuals, two of them school children, died instantly in a highway mishap involving a tricycle and a truck in Dipolog City on Wednesday morning.

Officials of the Dipolog City Police Station and the Police Regional Office-9 told reporters on Thursday that a 32-year-old tricycle driver, Ronnie Acoymo Merafuentes, his son and nephew, both Grade 3 pupils, were declared dead on arrival in a hospital where they were brought by emergency responders for treatment.

The accident also left the 14-year-old nephew of Mr. Merafuentes badly injured, now in a hospital.

The victims were in a tricycle that a truck hit head-on at a secluded stretch of the highway in Barangay Cogon.

Col. Edwin Duneceho Verzon, Dipolog City Police chief, said Mr. Merafuentes was driving his son and nephews to school.

Mr. Verzon said the truck that figured in the accident is owned by a motorcycle supplier in Lapu-Lapu City in Cebu, loaded with motorcycles that its driver, Rolly John Madaiton Balalilhe, was going to deliver to local suppliers.

Mr. Balalilhe voluntarily surrendered to policemen and barangay officials who responded to the incident, according to Mr. Verzon. — John Felix M. Unson

GOCC reforms have improved performance since 2011 — ADB

GOVERNMENT-OWNED and -controlled corporations (GOCCs) performed better following reforms that centralized governance and enhanced transparency, the Asian Development Bank (ADB) said.

“The effect of the centralization of GOCC ownership and the associated performance management, transparency, and accountability reforms have been significant,” the ADB said in its state-owned enterprise (SOEs) reform handbook issued on Feb. 12.

The bank said 50 GOCCs were abolished, merged, or deactivated as of 2022.

At the same time, GOCCs posted improved income and dividends.

The Bureau of the Treasury reported that P136.29 billion in dividends were remitted by 52 GOCCs as of Dec. 9.

This exceeded the P100 billion target for 2024 and were up 35% year on year.

The ADB also said that during the pandemic, GOCC revenue grew to $27.25 billion in 2021 from $11.3 billion in 2011.

“There were also increases in performance on nonfinancial measures. Stakeholder satisfaction surveys showed an improvement in GOCC performance among key stakeholders, presumably because of the performance scorecard system,” it said.

It was referring to the corporate governance scorecards issued to 84 SOEs by the Institute for Corporate Directors.

It said the performance of GOCCs was “on par or even better than private sector equivalents.”

In addition, the state-run firms also became more effective implementors of government programs by drawing on private sector expertise and capital through public-private partnerships (PPPs), the ADB said.

These projects included health, water, airport, and electricity works.

Additionally, PPP projects are planned to include GOCC port, urban development, and renewable energy initiatives.

“GOCCs have had a history of poor performance, being directed by multiple ministries and subject to political and noncommercial directives, creating inefficiencies and substantial debt burdens for the economy,” it said.

The ADB said that the state-run firms were “compelled to refrain from increasing prices for their services such as public transportation fares — and to be lenient in collecting unpaid fees — like agricultural water usage charges — to avoid public backlash.”

These were later addressed through the GOCC Governance Reform Act or Republic Act No. 101049 in 2011.

It led to the creation of the Governance Commission for GOCCs (GCG), which oversees and sets policy and management guidance for the state-run firms.

The current issue involving GOCC governance involves how the government accesses the corporations’ funds over and above the dividends, it said.

The Supreme Court issued a restraining order against the transfer of P89.9 billion from the reserves of the Philippine Health Insurance Corp. (PhilHealth) to the Treasury, after the P60 billion had been remitted.

The High Court will hear oral arguments on the transfers until Feb. 25. — Aubrey Rose A. Inosante

Palay farmgate prices fall 17% in Jan.

A farmer threshes newly harvested palay grains at a ricefield in Mogpog, Marinduque in central Philippines, March 22, 2016. — REUTERS

THE FARMGATE PRICE of unmilled rice (palay) fell 17% year on year in January to an average of P20.69 per kilogram, after rice imports hit record levels last year.

Month on month, the palay farmgate price fell 0.05% to an average of P20.70, the Philippine Statistics Authority (PSA) said in a report.

The PSA said all regions except the Eastern Visayas reported falling prices on average in the 12 months to January 2025.

Month on month, only seven of the 16 regions posted growth in average farmgate prices — Cagayan Valley, Calabarzon, Mimaropa, Bicol, Central Visayas, Eastern Visayas, Soccsksargen, and Caraga.

The highest palay prices in January were posted by the Eastern Visayas, where palay prices rose 28.4% year on year and 7.0% month on month to P24.79 per kilo.

The lowest farmgate price was recorded in Calabarzon at P17.41 per kilo from P23.55 per kilo, down 26.1% year on year.

The biggest decline was logged by Cagayan Valley at 26.8%, with its average farmgate price falling to P20.37 from P27.84 per kilo.

The Department of Agriculture (DA) has said that it can “purchase more from farmers as palay prices this year averaged P21 to P23 per kilo compared with P27 per kilo in 2024.

The DA lowered the price of National Food Authority (NFA) rice to P35 per kilo, days after declaring a food security emergency due to an “extraordinary” spike in the price of the grain, despite lower tariffs for imports.

“That is expected given the huge inflow of imports in 2024 coupled with the reduction in tariffs and the softening of international prices,” Raul Q. Montemayor, national manager of the Federation of Free Farmers Cooperatives, Inc., said via Viber.

“We hope that the DA will be as concerned about this as they are with rice retail prices.”

The DA last month said it was expecting the palay harvest to exceed 20 million MT this year.

In 2024, rice imports hit a record 4.68 million metric tons (MMT), against 3.6 MMT a year earlier.

Mr. Montemayor said palay production in 2024 declined by 972,427 MT, equivalent to 612,628 MT of rice.

“But the country imported about 1.2 million MT more than what it bought abroad in 2023.

So, the decline in local production was more than offset by imports by around 600,000 tons.”

The national rice inventory rose to 2.16 MMT in January, up 6.4% year-on-year.

Month on month, the rice inventory declined 15.7% from 2.56 MMT in December.

President Ferdinand R. Marcos, Jr. last year issued an executive order lowering the tariff on imported rice to 15% from 35%.

“One of our arguments in rejecting the order is its direct impact of reduced palay prices as traders and millers will have to contend with rice imports flooding the market,”  Samahang Industriya ng Agrikultura  executive director Jayson H. Cainglet said via Viber.

“We hope that under the food security emergency declaration, the DA through the NFA can procure more than the 15-day mandate to about 30 days buffer stock at the guaranteed price of P23 per kilo,” he said.

“A 30-day buffer stock would also be equivalent to 7-8% of rice consumption, and enhanced ability on the government’s part to intervene in the market to reduce rice prices,” he added.

The DA said Tuesday that economic managers owill soon review the tariff order to “assess whether it needs to be adjusted.”

It said Secretary Francisco Tiu Laurel, Jr. is “only inclined to recommend a revision of the current tariff level if retail prices of imported rice ease to the P42-P45 per kilo range.” — Kyle Aristophere T. Atienza

AI, finance to remain high-demand fields

FREEPIK

THE JOB MARKET will feature strong demand for technology-driven roles, finance professionals, and healthcare workers, according to JobStreet by SEEK.

Henry Jose C. Yusingco, Head of Marketing at JobStreet by SEEK, said that candidate shortages persist in those fields, as well as in business processing outsourcing (BPO).

“There is still a huge demand for information technology (IT) talent, which includes programming, artificial intelligence (AI), machine learning, and productivity software applications. Data science and analytics are also emerging as key areas of focus,” he told BusinessWorld.

Finance remains strong due to the rise of financial technology (fintech) applications, like e-wallets, GCash and Maya.

Beyond purely tech roles, Mr. Yusingco noted a growing need for professionals adept in AI-powered tools.

“Marketing, for example – some people are already looking for marketers that have an AI background,” he said. “Let’s say, an AI artist. That’s usually part of the marketing sphere. A graphic artist or a designer is usually skilled in Adobe or Canva. But now, they’re slowly moving towards roles that have an inclination towards AI.”

Soft skills remain a key component of employability, in addition to technical expertise, Mr. Yusingco noted.

With the Department of Education (DepEd) set to integrate soft skills into the new K-12 curriculum this June, he highlighted the importance of critical thinking, communication, and adaptability.

Employers value workers who can think critically, communicate effectively, and work collaboratively, he noted, adding that such skills set humans apart from computers. — Chloe Mari A. Hufana

Market operator expecting power spot price hike during dry season

ANDREY METELEV-UNSPLASH

THE INDEPENDENT Electricity Market Operator of the Philippines, Inc. (IEMOP) is projecting an increase in power prices at the Wholesale Electricity Spot Market (WESM) during the dry season due to higher demand.

“Of course, it’s warmer… we can see that there will be an increase in demand. So, therefore, there will be an increase in prices,” Chris Warren C. Manalo, assistant manager at IEMOP’s market simulation and analysis division, told reporters at a briefing.

Mr. Manalo said that spot prices for February will be level with January rates as the cold weather will keep demand in check.

However, compared with last year when the Philippines was experiencing El Niño, this year’s power demand could be further dampened by La Niña, according to Isidro E. Cacho, Jr., IEMOP’s head of trading operations.

“Generally, the demand will increase because of summer but compared with last year, possibly will not reach last year’s peak,” Mr. Cacho said.

With the economy growing, he said that the committed power plants coming online are expected to contribute to supply.

“That means more stable prices, especially now that the reserve market is also providing more secure and stable transmission and supply of power,” he said.

IEMOP operates the WESM, where energy companies can buy power when their long-term contracted power supply is insufficient for customer needs.

For January, the average spot price declined by 14.3% to P2.96 per kilowatt-hour (kW), which IEMOP said was the lowest average price recorded since January 2023. It attributed this to the relatively high supply margin following low system demand as temperatures cooled.

IEMOP recorded a high of P8.50 per kWh in the May 2023 average rate, when system-wide demand was 13,949 megawatts. WESM operations started in Mindanao in the same year.

“We hope that this year, our issues with congestion are resolved with all the new transmission lines that have been committed by NGCP (National Grid Corp. of the Philippines). We expect this will expand even further this year,” Mr. Cacho said. — Sheldeen Joy Talavera

Bakeries cite need to raise prices if wages hiked

PHILIPPINE STAR/ MICHAEL VARCAS

THE BAKING INDUSTRY said it wants the government to allow bread prices to rise if a proposed P200 blanket wage hike goes ahead.

Filipino-Chinese Bakery Association, Inc. (FCBAI) President Christopher C. Ah said at a briefing: “As long as the government helps us in gradually increasing our prices so that our consumer will not get hurt.”

The briefing was called to discuss the industry’s outlook. Mr. Ah said he is confident about growth this year due to growing demand and the government’s support.

“We are okay as long as the government supports us,” he said Thursday.

“Bread stays a staple for us (Filipinos). And what is good about the industry is that our bakers are becoming more innovative,” he added, citing moves to sell bread online.

“It started during the pandemic when (online selling) boomed,” he added.

He said the industry is in continuous dialogue with the government for support measures like tax breaks and the promotion of healthy breads.

“Our suppliers are being supported by the government; that is why instead of continuously increasing prices, they also control their prices,” Mr. Ah added.

He said price pressures are being dealt with via innovation.

“We have strong partners who teach us how to use new technology, remedies, and solutions,” he said.

He cited the example of alternatives to sugar, which is becoming expensive

“Actually, we are lucky because the Department of Trade and Industry (DTI) came up with Pinoy Tasty,” he added, referring to the standard loaf of sliced sandwich bread, which is price-controlled.

Pinoy Tasty, along with Pinoy Pandesal — the traditional Filipino bread roll — emerged from a joint project between the government and baking industry to formulate affordable bakery products.

The DTI in its suggested retail price (SRP) bulletin on Feb. 1 approved a P2.25 and P4 increase for Pinoy Pandesal and Pinoy Tasty, respectively. This was the first price increase for these products since 2022.

The FCBAI is hoping to address the issues faced by the industry at this year’s Bakery Fair, due to take place on March 6-8 at the World Trade Center.

“We are expecting 30,000 to 35,000 participants for the three days,” Mr. Ah said. — Justine Irish D. Tabile

PHL-Cambodia double-taxation deal seen improving investment, regional trade

REUTERS

THE PHILIPPINES and Cambodia have signed a double-taxation agreement (DTA), which the Department of Finance (DoF) expects to boost foreign investment and trade.

Finance Secretary Ralph G. Recto said in a statement: “The signing of this DTA is a crucial step towards improving the integrity of our tax system.”

“By eliminating tax barriers and ensuring a fair and transparent framework, we are not only attracting greater foreign investment into the Philippines but also reinforcing our trade ties within the region,” he added.

Mr. Recto and Cambodian Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation Prak Sokhonn signed the DTA on Feb. 11.

It will take effect after ratification by the two countries’ respective legislative bodies.

The deal was reached after three rounds of negotiations, with the final round ending in Manila last year in April.

The DoF said the agreement will eliminate double taxation on income earned in the two countries, deter tax evasion, and enhance economic cooperation, aligning with commitments under the Association of Southeast Asian Nations Forum on Taxation.

The agreement is also expected to reduce fiscal barriers and stimulate bilateral trade and investment.

“Specifically, the agreement covers various aspects of taxation, including income from business profits, dividends, interests, royalties, capital gains, and other sources of revenue, ensuring a fair and efficient tax framework for businesses and individuals operating in both jurisdictions,” it said.

It involves the exchange of tax information and dispute resolution mechanisms in line with the Base Erosion and Profit Shifting  and tax transparency initiatives and standards, the DoF said. — Aubrey Rose A. Inosante

Trade show organizer expects water exhibit buyers to top 12,000

PHILIPPINE STAR/EDD GUMBAN

INTERNATIONAL trade show organizer Informa Markets Asia is expecting its upcoming exhibition to attract over 12,000 trade buyers seeking innovative water technologies and solutions.

“The challenges we face, including water scarcity, pollution and climate change, require innovative solutions and collective action,” Ian Roberts, vice-president of Informa Markets Asia, said in a pre-event briefing Thursday.

“It is within this context that our exhibitors emerge as key players, offering cutting edge technologies and insights that will help us address all of these pressing issues,” he added.

Informa and its partners is preparing for the seventh edition of WATER PHILIPPINES, which highlights supply, sanitation, industrial wastewater treatment, and purification technology, which is set to take place on March 19-21 at the SMX Convention Centre in Pasay City.

The event will feature over 400 exhibitors and companies from more than 30 countries.

Informa has organized 600 trade shows, including seven in the Philippines.

“We’re pushing the government to try and build a bigger exhibition venue here in the Philippines so that we can bring more shows to the Philippines and attract more and more people to the Philippines to spend their money,” Mr. Roberts said.

“We’re very optimistic about the Philippines. We are having more conversations with companies all over the world in many industries who want to come and set up and do business here in the Philippines, and it’s our job to try and work with them,” he added.

Trade show participants include the Philippine Water Works Association, the Philippine Society of Sanitary Engineers, and the National Master Plumbers Association of the Philippines, Inc.

“WATER PHILIPPINES, along with our industry partners and government agencies, is dedicated to providing clean and potable water to every community. We aim to deliver innovative solutions and opportunities for local stakeholders,” Mr. Roberts said. — Sheldeen Joy Talavera

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