Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona — BLOOMBERG
The Philippines will likely use quarter-point moves to slash its benchmark interest rate by around 175 basis points through 2025, according to Governor Eli Remolona, as a shock slowing of inflation backed his case for further easing.
A 25 basis-point cut is on the cards for the Oct. 16 policy meeting, followed by a reduction of the same size in December, Mr. Remolona said in an interview Thursday. The Bangko Sentral ng Pilipinas is unlikely to resort to half-point cuts unless the nation’s economic growth “turns out to be worse than we thought,” he added.
“If the data are as we expect, then you would have the normal easing, which is small steps at a time, baby steps,” Mr. Remolona said.
He made the comments a day before government data showed September inflation easing to a four-year low at 1.9%. The latest print was below the BSP’s projection and the median estimate in a Bloomberg survey of analysts.
The slowdown was largely due to smaller gains in food prices, with rice inflation easing to 5.7%, the lowest since July last year, helped by lower import tariffs, the statistics agency said.
Mr. Remolona said he sees the key rate declining from 6.25% now to around 4.5% by the end of 2025, a level that will support the economy. Inflation is projected to firmly settle within the BSP’s 2%-4% target this year, he added.
Unlike the Federal Reserve, which delivered a 50-basis point cut when it began easing last month, Mr. Remolona kicked off the Philippines’ easing cycle in August with just a quarter-point cut. He sees the Fed cutting by a cumulative 75 basis points for the rest of the year, but signaled that the BSP doesn’t have to match these moves.
The BSP is unwinding its most aggressive monetary tightening in two decades, which had brought the policy rate to a 17-year high. The focus now is on the size and pace of future rate cuts, especially after the Fed’s outsize move.
The central bank has said its shift to a less restrictive monetary policy stance will be “calibrated” and “measured.” Finance Secretary Ralph Recto, a member of the rate-setting board, is however pushing for a more aggressive half-point move.
The possibility of below-target economic growth next year and ebbing consumption also provides the BSP impetus to sustain its easing cycle. The central bank recently slashed the reserve requirement ratio to 7% for big lenders, pulling another lever to support the economy.
The next cut in the RRR will likely happen next year, Mr. Remolona said. “We’re in no rush to reduce it even more,” he said, adding that a move sooner could stimulate the economy “too much.” — Bloomberg
The Philippine Lifestyle Sourcing Expo is set to take place from Oct. 10 to 12, 2024, at the SMX Convention Center Manila, marking a significant milestone in the sourcing industry. This dynamic expo brings together two renowned events — the Philippine Apparel Textile Show & the Philippine Sport Show, and the Asia International E-commerce Expo — creating an unparalleled sourcing experience that unites top local and international suppliers, manufacturers, and e-commerce experts under one roof.
Organized by the China Chamber of Commerce for Import and Export of Textiles, and Huiyuan Culture Development Group Co., Ltd., in collaboration with esteemed Philippine associations such as the Philippine E-commerce Association, Inc. (PECA), Philippine Fashion Coalition (PFC), the Garment Manufacturer’s Association of the Philippines (GARMAP) and the Confederation of Wearable Exporters of the Philippines (CONWEP), Fashion Designers Association of the Philippines (FDAP), Chinese Filipino Business Club, Inc., and Fashion Accessory Makers of the Philippines, this grand event is expected to attract thousands of industry leaders and innovators. Attendees will have the opportunity to explore fresh products and technologies while uncovering limitless trade possibilities across various sectors.
A Tailored Experience for the Retail, Distribution, and Manufacturing Sectors
The Philippine Lifestyle Sourcing Expo is an essential event for professionals in retail, distribution, and e-commerce, offering a unique platform to discover innovative products and solutions. Whether you are a retailer seeking the latest trends, a distributor in search of reliable suppliers, a start-up entrepreneur exploring new product lines, or a manufacturer looking to expand your offerings, this expo provides the ideal setting to accelerate your business objectives.
With over 70 exhibiting brands from the Philippines and China, the event will showcase more than 2,000 products across a diverse range of categories, including apparel, footwear, bags, accessories, baby products, sportswear, home décor, electronics, and much more. This expo is thoughtfully designed to meet the evolving needs of various industries through its expansive offerings.
In addition to the extensive product displays, the expo presents invaluable opportunities for attendees to connect with industry experts, attend informative stage presentations, and gain insights into emerging market trends essential for business growth. Key presentations at the event include:
Certification Goals for Textile, Garments, and Leather Production by Testex Philippines
Grow Your Business with Lazada, presented by Lazada Philippines
A special presentation by the Philippine Ecommerce Association, Inc.
One of the standout features of the expo is the Fashion Show hosted by the Fashion Designers Association of the Philippines. This captivating showcase will highlight innovative designs from both emerging and established designers, offering attendees a unique glimpse into the latest trends in the fashion industry.
Additionally, attendees can take advantage of exclusive business matching sessions with exhibitors at the Function Room 2 Stage Area. Exhibitors representing a diverse array of categories — including apparel, footwear, accessories, electronics, baby products, undergarments, and textiles — will be available for engaging discussions. These sessions are carefully designed to connect visitors directly with potential business suppliers, facilitating in-depth conversations, real-time negotiations, and a streamlined sourcing process.
To add to the excitement, visitors can participate in the expo’s raffle giveaway! The first 800 attendees will receive a raffle coupon for a chance to win exciting prizes, including iPads, Redmi Note 13 smartphones, portable Bluetooth speakers, and sports bags. Furthermore, the first 200 registrants each day will be eligible to claim a special gift upon completing the raffle mechanics — making the expo both productive and enjoyable!
There is so much to anticipate, so don’t miss this unique opportunity to attend! Entrance to the Philippine Lifestyle Sourcing Expo is FREE, so be sure to register at phlifestylesourcingexpo.vx-events.com.
Interested visitors for the exclusive business matching sessions can avail their slot here: https://tinyurl.com/B2BPHLSE.
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In an age where connectivity is essential for economic growth, education, healthcare, and disaster preparedness, we must unite to bridge the digital divide in the Philippines.
In the dynamic landscape of 2024, the Philippines is emerging as one of Southeast Asia’s fastest-growing digital economies. Fueled by a vibrant digital ecosystem, the nation’s digital economy is projected to leap from $24 billion to $35 billionby 2025. Leading this transformation is the Department of Information and Communications Technology (DICT), which has connected over 250,000 users in partnership with Kacific Broadband Satellites Group and various Internet service providers. Additionally, Kacific provides connectivity to 2,000 businesses across diverse industries such as tourism, agri-fisheries, and finance in the Philippines. This commitment aligns with the national government’s vision of prioritizing digital transformation, championed by the DICT.
As the largest Ka-band operator in the Asia-Pacific region, Kacific is pivotal in driving the digital revolution across the Philippines’ 7,640 islands. Using its geostationary satellite, Kacific1, the company delivers accessible and affordable next-generation satellite broadband services, significantly impacting the nation’s connectivity landscape.
Strategic Collaborations and Local Empowerment Initiatives
Kacific goes beyond technology, forming strategic alliances with international agencies and local businesses. The company prioritizes training a widespread network of local sales and installation partners, extending its reach to remote, rural areas. Since 2023, Kacific has significantly broadened its impact, connecting over a thousand additional sites, demonstrating its commitment to inclusive connectivity.
National Broadband Plan: Reaching the Unreachable
Kacific’s strong local presence, dedicated workforce, and extensive network of Internet Service Providers (ISP) partners set it apart. In collaboration with a humanitarian organization and in partnership with Marlink and Stellarsat Solutions, Inc., Kacific has connected 150,000 users nationwide to support government facilities and emergency communication needs. Of these 150,000 users, 90,000 were connected through DICT’s Free Wi-Fi project sites, completed nationwide in June 2024 over two months. This comprehensive project addresses connectivity challenges in remote areas, benefiting healthcare units, educational institutions, and local governments.
As part of the Free Wi-Fi for All program, Kacific plays a crucial role in the Universal Internet Subscription for Geographically Isolated and Disadvantaged Areas (UISG) project, connecting 112,600 users nationwide.
Christian Patouraux, Kacific’s CEO, emphasizes the importance of uninterrupted internet access for business continuity in remote areas where traditional wired connections are impractical. “At the core of our mission, we’re committed to providing reliable connectivity solutions that transcend geographical constraints, ensuring businesses thrive even in the most challenging environments,” said Patouraux.
Kacific brings connectivity that transforms and opens windows to the world in Indigenous communities.
Since 2023, more than a thousand sites have been successfully activated, demonstrating Kacific’s active commitment to supporting the Philippine government’s initiatives for nationwide internet enhancement. This achievement solidifies Kacific and its ISP partners as esteemed collaborators, earning respect and recognition from both the Philippine government and the DICT.
Global Reach, Local Impact: Kacific’s Commitment to the Philippines
Kacific’s strength lies not just in its technology but in its strong local presence. With an extensive network of ISP partners nationwide, backed by a highly experienced Filipino team and over 150 distributors and installers, Kacific is deeply committed to the Philippine market. The company offers 24/7 support for installations and customer inquiries, showcasing its dedication to fostering resilient and connected communities.
Through partnerships and strategic initiatives, Kacific has established itself as a reliable satellite broadband provider, propelling the Philippines into a more digitally connected future. With a proven track record and a robust distribution network, Kacific is poised to fulfill the most critical connectivity requirements.
Discover more about Kacific’s impact and commitment to advancing connectivity at www.kacific.com.
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THE International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S. — REUTERS
By Luisa Maria Jacinta C. Jocson, Reporter
WITH the Philippines’ fiscal consolidation slowing this year, the International Monetary Fund (IMF) said the country still has room to introduce new tax measures.
“On the fiscal policy side, we see fiscal consolidation proceeding in 2024, although it will be more moderate than envisioned in earlier projections,” IMF Mission Chief Elif Arbatli Saxegaard said at a press briefing on Wednesday.
“In terms of spending, we actually see more spending on the public side. We see that being offset or financed by higher revenues,” she added.
The IMF projects the fiscal deficit to settle at 5.6% of gross domestic product (GDP) this year and in 2025. However, it noted that its deficit definition is different from the National Government’s (NG) as it uses a different standard in capturing the deficit.
“Based on our definition of the deficit, we expect the deficit to go from 6.1% in 2023 to 5.6% this year and to remain at 5.6% in 2025,” she said.
The NG set its budget deficit ceiling at 5.6% of GDP this year, equivalent to P1.48 trillion. Next year, the deficit is projected to settle at 5.3% or P1.54 trillion.
The IMF noted that there is room for additional tax measures that will create more fiscal space.
“Over the medium term, the fiscal consolidation plans remain appropriate and should be supported by a sustainable plan to raise tax revenues and implement expenditure reforms,” Ms. Saxegaard said.
The Philippine government can look into excise taxes as an option to generate revenues “sufficiently and quickly,” she said.
Last year, then-Finance Secretary Benjamin E. Diokno pushed for an excise tax on “junk food” and higher taxes on sweetened beverages. These taxes were projected to generate up to P76 billion in the first year of implementation.
However, the Department of Finance (DoF) earlier this year said there are no plans to introduce new tax measures apart from the ones already pending in Congress.
“In terms of other areas over the medium term, there could be a lot of different options that could be considered. One area is improving the efficiency of the value-added tax (VAT) system,” Ms. Saxegaard said.
Last year, the DoF said that the Philippines has one of the lowest VAT efficiencies in Southeast Asia despite having the region’s highest VAT rate at 12%.
From 2016 to 2020, the country collected an average of P723 billion from VAT, which is only around 40% of the expected VAT collection.
Ms. Saxegaard also noted the possibility of pursuing a carbon tax.
“We understand that there’s also different tradeoffs playing out here. The cost of power and electricity in the Philippines is quite high,” she said.
The Finance department has been studying various carbon pricing options for the country, including a carbon tax and emissions trading system (ETS). This as it seeks to encourage businesses to shift to sustainable practices.
The Philippines currently does not have any explicit form of carbon pricing.
“As a growing economy, the Philippines has to weigh different considerations in thinking about a carbon tax. It is one option for their consideration that can support the transition to a green economy to promote renewable energy, to shift consumption patterns away from polluting energy to more green energy sources,” Ms. Saxegaard said.
“In that respect, it could stay on the table. But it’s a complicated issue, so it needs to be considered very carefully.”
Meanwhile, IMF Representative to the Philippines Ragnar Gudmundsson said that the government should also pay close attention to granting tax incentives.
“What we would also recommend is continuing to monitor closely tax incentives as they’re being granted and ensuring that they contribute effectively to additional investments and momentum for growth.”
“There also may be a sense of provisions to these incentives so that eventually, once those investments have come to the Philippines and contributed to growth and that they’re sustainable over time, there will also be a contribution through, for instance, income tax over time.”
‘NEUTRAL’ For next year, the IMF said that the fiscal stance will be “neutral.”
“That means that the impulse from the fiscal policy is neither contractionary nor too expansionary,” Ms. Saxegaard said.
Financial conditions are also seen to improve as both the Bangko Sentral ng Pilipinas (BSP) and US Federal Reserve are expected to continue easing.
BSP Governor Eli M. Remolona, Jr. has said that the central bank can cut rates further in the fourth quarter, possibly by up to 50 bps. The Monetary Board’s remaining meetings are on Oct. 16 and Dec. 19.
“All of these financial sector developments, including the reserve requirement cut as well, can support the more favorable financial conditions. That will support a pickup in investment, private investment, and also some pickup in private consumption next year, allowing the fiscal side to be sort of more neutral,” Ms. Saxegaard said.
The BSP will slash the reserve requirement ratios (RRR) of big banks by 250 bps to 7% from 9.5% later this month.
SLOW FISCAL RECOVERY In a separate report, Fitch Solutions’ unit BMI said that the Philippines’ recovery in its fiscal position will be more gradual.
It said that the proposed P6.352-trillion national budget marks an increase in public spending, which will derail consolidation efforts.
“This will reverse the country’s fiscal consolidation efforts. Admittedly, the Philippines fiscal recovery has already fallen behind regional counterparts and the latest budget certainly does not help this cause,” it said.
BMI said the government will “fall short” of its fiscal targets, projecting the budget gap to hit 5.9% of GDP this year.
The NG will also struggle to bring down debt levels, BMI said.
“While the authorities aim to reduce public debt as a proportion of GDP to 55.9% by 2028, we believe that this is unlikely to be met. To achieve this, the deficit must be maintained at 3.6% of GDP over the subsequent three years (2026-2028),” it said.
“But this would necessitate spending cuts of almost 1.0 percentage points, based on our estimates, making it challenging for the current administration to balance its economic agenda.”
Latest Treasury data showed that the NG’s outstanding debt dipped to P15.55 trillion as of end-August.
In the first half, the debt-to-GDP ratio stood at 60.9%. The government expects the debt ratio to end at 60.6% of GDP this year.
“Instead, we forecast the budget shortfall to average 4.6% over the same period. Consequently, public debt will recede more slowly, eventually reaching 58.8% of GDP in 2028.”
On the other hand, BMI noted that the government could surpass its revenue targets.
“Revenue targets are relatively watered down in comparison. The government is forecasting revenue collection to dip from 16.1% of GDP in 2024 to 15.8% in 2025. In our view, this is a tad too conservative especially when the macroeconomic backdrop is set to improve next year.”
In the eight-month period, revenue collections jumped 15.91% to P2.99 trillion from P2.58 trillion last year.
“Philippine policy makers tend to underestimate their revenue targets, as seen in the past two years. Currently, we have projected revenue collection to be around 16% of GDP, which is already higher than the government’s expectation of 15.8%. If revenue exceeds even our projections, we could anticipate a smaller budget deficit.”
CHRISTMAS decorations are displayed at a market in Quiapo, Manila, Sept. 29, 2024. — PHILIPPINE STAR/RYAN BALDEMOR
THE PHILIPPINES will likely post the second-fastest growth in the Association of Southeast Asian Nations Plus 3 (ASEAN+3) region this year and in 2025, driven by faster government spending and easing interest rates, according to a regional think tank.
In its October update, the ASEAN+3 Macroeconomic Research Office (AMRO) retained its gross domestic product (GDP) growth forecast for the Philippines at 6.1% this year and 6.3% next year.
“We didn’t change the forecast for the Philippines. As you can see, we expect growth to be at 6.1%, which will be an improvement from last year’s 5.6%,” AMRO Chief Economist Hoe Ee Khor told a virtual briefing on Thursday.
“This is mainly because we expect government investment spending to be higher this year, together with services exports,” he said.
The AMRO’s projection is within the government’s 6-7% target for 2024. However, its 2025 forecast is below the government’s 6.5-7.5% goal.
Mr. Khor said Philippine economic growth remains one of the strongest in the ASEAN+3 region, which includes members of the ASEAN, China, Hong Kong, Japan and South Korea.
AMRO’s growth forecast for the Philippines is just behind Vietnam (6.2%), and ahead of Cambodia (5.6%), Indonesia (5.1%), China (5%), Malaysia (4.7%), Laos (4.5%), Brunei Darussalam (4%), Hong Kong (3.3%), Thailand (2.8%), South Korea (2.5%), Singapore (2.4%), Myanmar (1.8%) and Japan (0.5%).
Philippine growth is also projected to be above the projected ASEAN+3 average of 4.2% this year. This was slightly lower than the previous forecast of 4.4%.
“Growth for the region will be driven by continued recovery in external trade, resilient domestic demand, and a boost in tourism due to relaxed visa policies in some economies,” AMRO said.
For 2025, the ASEAN+3 region’s growth forecast was upgraded to 4.4% from 4.3% previously, in line with expectations of steady global growth.
“The region is on track to achieve steady growth this year and the next and this will be underpinned by resilient domestic demand and the ongoing recovery in exports,” AMRO Principal Economist Allen Ng told the briefing.
The global demand for artificial intelligence will drive ASEAN+3 exports, AMRO said.
“Leading indicators also suggest sustained demand for a wide range of manufactured goods beyond semiconductors, indicating a broad-based export recovery in the region,” according to the report.
Cost pressures have also eased as global freight rates stabilized, which would help boost regional trade, it added.
For ASEAN, AMRO lowered its growth forecast to 4.7% this year from 4.8% previously. However, it raised its 2025 projection to 4.9% from 4.8% previously.
“Household consumption in most ASEAN economies have remained robust, supported by favorable employment conditions and moderating inflation,” Mr. Ng said.
INFLATION Meanwhile, AMRO kept its inflation forecast for the Philippines at 3.3% in 2024 and 3.1% in 2025 amid expectations of continued policy easing.
“I think that if it (inflation) continues to trend down, it will provide room for the BSP (Bangko Sentral ng Pilipinas) to cut rates further,” Mr. Khor said.
The central bank began its easing cycle in August by cutting the benchmark rate by 25 bps to 6.25% from the over 17-year high of 6.5%. This was the first time the BSP reduced rates in nearly four years.
AMRO lowered its ASEAN+3 inflation forecast, which excludes Laos and Myanmar, to 1.9% this year from 2.1% previously.
“The moderation in inflation in 2024 reflects the continuing impact of tight monetary policy, softer food prices, and lower imported inflation,” AMRO said.
AMRO kept its inflation forecast for ASEAN+3 (excluding Laos and Myanmar) at 2.3% in 2025.
“Overall, inflationary pressure remains well contained in the region, in line with the baseline expectation of normalization of global inflationary trend,” the think tank added.
For ASEAN, the inflation forecast was cut to 6.1% from 6.3% previously, while its 2025 projection was raised to 4.9% from 4.4% in July.
RISKS AMRO identified several key risks that could affect the baseline growth forecasts for this year and next year, such as sharp growth slowdown in the US, Europe and China and a rise in financial market volatility.
“Looking ahead, uncertainties surrounding US monetary policy trajectories, the upcoming presidential election, and the potential for further unwinding of large financial positions could affect market functioning and amplify financial stresses. This could trigger further disorderly market conditions, impacting the region’s macro-financial stability,” it said.
A spike in global commodity and shipping prices due to weather disturbances and geopolitical conflicts could also hurt the region’s export recovery and stoke inflation, AMRO noted.
“The potential escalation of protectionist policies following the US presidential election is another key risk for the region,” Mr. Khor said.
Former US President Donald Trump, who is known for his populist and protectionist policies, is set to face Vice-President Kamala Harris in the presidential election on Nov. 5.
“Based on AMRO staff estimates, a severe escalation of protectionist measures by the US, such as the implementation of universal tariffs on imports, could lower the region’s growth by almost one percentage point — resulting in the lowest regional growth since the Asian Financial Crisis, with the exception of the pandemic years of 2020 and 2022,” the think tank said.
In the long term, the ASEAN+3 region faces significant challenges arising from aging populations and failure to address climate change.
“The broader trend of geoeconomic fragmentation and continued geopolitical tensions will likely negatively affect the longer-term growth of the region, especially for the trade-dependent economies,” AMRO said.
Mr. Khor said the easing cycle of global central banks, as well as China’s measures to boost its economy, will have favorable spillover effects in the region.
“However, rising external and geopolitical uncertainties underscore the need to continue strengthening resilience and enhancing cooperation in the region,” he added. — B.M.D.Cruz
The Bangko Sentral ng Pilipinas (BSP) projects inflation to average 3.4% this year. — PHILIPPINE STAR/MIGUEL DE GUZMAN
PHILIPPINE INFLATION is likely to slow this year to fall within the central bank’s target range, but higher transport charges and domestic rice production pose upside risks, the World Bank said.
In its latest monthly update, the World Bank said that the entry of more rice imports under lower tariffs should help keep inflation within the government’s 2-4% target.
“Inflation resumed its downward trend in August and is on track to fall within target this year,” the Washington-based lender said.
The consumer price index (CPI) eased to 3.3% in August from 4.4% in July. Inflation averaged 3.6% in the first seven months.
The Bangko Sentral ng Pilipinas (BSP) projects inflation to average 3.4% this year.
“The balance of risks to the outlook has shifted toward the downside given expected reductions in rice prices as more imports arrive under the reduced tariff regime,” the World Bank said.
An executive order cutting tariffs on rice to 15% from 35% took effect in July. This helped rice inflation ease to 14.7% in August from 20.9% in July.
However, the World Bank said higher transport and electricity charges, as well as possible global oil and food price shocks still provide upside risks to the inflation outlook.
“Domestic rice production and prices also remain vulnerable with the La Niña weather phenomenon expected to bring more rainfall and intense typhoons in the remaining months of the year,” World Bank said.
Meanwhile, the World Bank said recent external and domestic developments have given the BSP more space for policy easing.
“Peso appreciation, driven by a wider US interest rate differential, supports domestic disinflation. This gives more room for further normalization of domestic monetary policy,” it said.
The BSP began its easing cycle in August by cutting the target reverse repurchase (RRP) rate by 25 bps to 6.25% from the over 17-year high of 6.5%.
BSP Governor Eli M. Remolona, Jr. earlier said the Monetary Board could implement two more rate cuts at its last two meetings on Oct. 16 and Dec. 19.
The latest policy adjustments will also support faster bank lending, the World Bank said.
“Along with lower inflation, the reductions in the real interest rate, and lower reserve requirements could spur demand for credit in the near term by improving business and consumer sentiment,” World Bank said.
“The BSP estimates the full impact of these policy adjustments will be felt with a lag of 12-15 months.”
This month, the BSP will reduce the RRR for big banks and nonbank financial institutions with quasi-banking functions by 250 bps to 7% from 9.5%.
It will also reduce the ratio for digital banks by 200 bps to 4%, thrift banks by 100 bps to 1%, and rural banks and cooperative banks by 100 bps to 0%.
The World Bank noted the beginning of the US Federal Reserve’s easing cycle also helped increase inflows into the Philippines’ financial markets.
“Aggressive rate cuts by the US Federal Reserve have made assets in emerging economies more attractive to international investors and enhanced capital inflows,” the World Bank said.
The US Federal Reserve cut rates by 50 basis points last month, bringing its key policy rate within 4.75-5%.
Meanwhile, the World Bank said manufacturing sector’s performance will likely remain “modest” amid weak external demand for Philippine exports. — BMDC
The EY Entrepreneur Of The Year 2024 Philippines has concluded its search for the country’s most visionary leaders shaping opportunities and transforming industries. It is a program of the SGV Foundation, Inc., with co-presenters: the Asian Institute of Management, the Department of Trade and Industry, the Philippine Business for Social Progress, and the Philippine Stock Exchange.
Rosemarie P. Rafael Chairperson and President Airspeed Group of Companies
ROSEMARIE P. RAFAEL is a prime example of entrepreneurial resilience and innovation. Her remarkable journey, from humble beginnings as a ticketing agent to leading one of the top logistics companies in the Philippines, is a story of determination, business acumen, and visionary leadership.
After her stint as a ticketing agent, Ms. Rafael joined a cargo agency but soon realized the limitations of her role, driving her to follow her dreams and carve her own path.
“As early as then, I wanted to do things that would impact other people,” she recalled.
Despite challenges in a male-dominated industry, her unique mix of determination, motherly care, heart for people, and vision set her apart.
In 1985, with six employees and a single delivery van, Ms. Rafael founded Airspeed International Corp. From the start, she focused on building trust-based relationships rather than purely transactional ones, which attracted a loyal customer base.
Airspeed faced many challenges early on, but within five years, it surpassed her former employer and was recognized by the International Air Transport Association (IATA). Her vision expanded Airspeed’s offerings, including international and domestic multi-modal freight forwarding, customs clearance, specialized logistics, storage solutions, and e-commerce fulfillment. Today, Airspeed operates in over 90 countries, serving thousands of stakeholders.
Ms. Rafael is passionate about supporting small- and medium-sized enterprises (SMEs), which she calls “the backbone of the Philippine economy.”
“If we really want to be competitive in the ASEAN region, we really have to help our SMEs — give them access to tools, resources, access to finance, and access to markets,” she said.
Through initiatives like PINASPEED SME Program, which offers discounted delivery rates, access to trainings and trade fairs, and online marketplace through the Kahanga-hangang Pilipinas — an e-commerce digital platform showcasing MSME products from various regions of the Philippines — she helps SMEs grow alongside Airspeed.
The COVID-19 pandemic was a critical test for her leadership as commercial flights were grounded. She made the bold decision to charter flights, ensuring continued service despite global disruptions. “We were able to feed our people because of that particular decision,” she narrates.
Airspeed’s success with major clients prompted Ms. Rafael to strengthen her corporate governance skills, which opened new growth opportunities. Her problem-solving abilities were further highlighted when Airspeed successfully delivered a critical medical item from Singapore with only hours to spare, saving a life in the process. “So, it’s not just about delivering. This is the joy that we have in what we do,” she says.
Under her leadership, Airspeed prioritizes sustainability through Environmental Social and Governance (ESG) initiatives like using e-vehicles, recycling packaging, and consolidating trips to reduce environmental impact. Moreover, Airspeed is proud to be women-led, with over 50% of its workforce being female, including LGBTQIA+ employees. Women hold 70% of their top executives and 45% of middle-tier managers.
“Diversity and inclusion are values that extend beyond the company to its suppliers and partners,” she said.
As chairperson of the Women Business Council Philippines and ASEAN Women Entrepreneurs Network, she champions women’s leadership and economic empowerment. Through public speaking and NGO involvement, she advocates for the success of women in business, inspiring future female leaders.
Looking ahead, Ms. Rafael aims to expand Airspeed’s presence beyond the Philippines, standardize logistics processes, and upskill the workforce to compete in the ASEAN region. Airspeed’s digital platforms like UnboxMe and Pinaspeed, which cater to e-commerce, also demonstrate her commitment to innovation and support for microbusinesses.
Her leadership exemplifies the power of resilience and purpose-driven business. “We want to have an impact not only within our company, among the employees and the stakeholders, but also in the communities that we serve,” she said. “We can make it happen.”
Media sponsors are BusinessWorld and the ABS-CBN News Channel. Gold sponsors are SteelAsia Manufacturing Corp., Uratex, and Converge ICT Solutions, Inc. Silver sponsor is International Container Terminal Services, Inc. Bronze sponsor is Lausgroup Holdings, Inc. Banquet sponsors are Robert Blancaflor & Groups, Inc., Bounty Fresh Group Holdings, Inc., and Vista Land & Lifescapes, Inc.
The winners will be announced on Oct. 23, 2024. The EY Entrepreneur Of The Year 2024 Philippines will represent the country in the World Entrepreneur Of The Year 2025 in Monte Carlo, Monaco in June 2025. The EY Entrepreneur Of The Year program is produced globally by Ernst & Young (EY).
IEMOP hosted this year’s Philippine Electric Power Industry Forum, themed “Powering a Sustainable and Secure Energy Future for the Country,” last April 5 at the Iloilo Convention Center.
As required by Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act (EPIRA), the Independent Electricity Market Operator of the Philippines, Inc. (IEMOP) serves as the independent market operator of the Wholesale Electricity Spot Market (WESM), a centralized venue among large-scale electricity buyers and sellers.
Established in 2018, the IEMOP is responsible for pursuing the objective of the WESM of having a fair, competitive, and reliable electricity market in the Philippines. It is focused on facilitating electric trade and delivering market solutions, and it serves as a platform for wholesale electricity trading, along with demand forecasting, monitoring and settlement. It is tasked as well with adopting the best practices in market solutions and operations, ensuring transparency, accessibility, and efficiency in the evolving energy landscape.
As it marks six years of serving the electric power industry this year, the IEMOP strives to guide and empower the Philippine electricity sector through its recent capacity-building, knowledge-sharing, and development initiatives, among others.
“Over the past six years, IEMOP has been steadfastly contributing to development and innovation in the energy industry, achieving several significant milestones such as the integration of Mindanao into the WESM and, more recently, the commencement of the Ancillary Service Market which has transformed WESM into a co-optimized energy and reserves market,” IEMOP President and Chief Executive Officer Atty. Richard J. Nethercott said in a statement.
“As the energy landscape evolves, IEMOP remains dedicated to adopting best practices in market operations and exploring new ways to innovate, all while upholding the core WESM principles of competition, transparency, accessibility, and efficiency,” he added.
“IEMOP acknowledges the invaluable support of the DoE (Department of Energy), ERC (Energy Regulatory Commission), PEMC (Philippine Electricity Market Corp.), market participants, and all stakeholders as it marks its 6th year of market operations. IEMOP is committed to continuously improve as an organization and face the challenges of an ever-evolving electricity market.”
Empowering gatherings
Since last year, IEMOP has aimed to support the growth and development of the electric power industry through a number of events for capacity-building, collaborations, and discussions.
IEMOP hosted this year’s Philippine Electric Power Industry Forum, themed “Powering a Sustainable and Secure Energy Future for the Country,” last April 5 at the Iloilo Convention Center.
For instance, IEMOP hosted this year’s Philippine Electric Power Industry Forum (PEPIF) last April 5 at the Iloilo Convention Center in Iloilo City. The forum brought industry players to strengthen collaborations and build partnerships across the sector. It also highlighted the challenges, opportunities, as well as shared the best practices and explored the latest trends and development in the electric power industry.
Themed “Powering a Sustainable and Secure Energy Future for the Country,” this year’s PEPIF topics included, among others, “Philippine Energy Transition Plan — Opportunities and Challenges in the Renewable Sector,” “Achieving 100% Rural Electrification through Renewable Energy,” “Achieving RE Mix Targets while Ensuring Reliable Supply for End-Users,” and “Country’s Path Towards Achieving a Sustainable and Secure Energy Future.”
IEMOP’s Capacity Building Exchange on Electricity Markets Forum was also another successful initiative, bringing energy stakeholders and groups in one space. This three-day forum is designed to equip industry players with electricity market design, practices and programs implemented in electricity markets in other jurisdictions. This forum was funded by the US Department of State in partnership with the United States Energy Association (USEA) and in coordination with the DoE, ERC, and other energy stakeholders and groups.
In partnership with global consulting and market insights company Deloitte, IEMOP also hosted a workshop exploring the increasing integration of renewable energy systems in the country. This workshop aimed to share insights on energy transition, develop a high-level road map, and strategic approaches for navigating the shift to the renewable energy landscape.
IEMOP also held a Kumustahan session with the Philippine Rural Electricity Cooperatives Association, Inc. to discuss the latest updates and developments in the electricity market.
The IEMOP also recently held a “Kumustahan” session with the Philippine Rural Electricity Cooperatives Association, Inc. (PHILRECA), among others, which served as another platform for discuss-ing the latest updates, developments and the ECs concerns in the market. It also emphasized the organiza-tion’s commitment to maintaining strong communication with its participants and stakeholders. This session was organized in coordination with the DoE, ERC, and the National Grid Corporation of the Philippines (NGCP).
As more private sector players are transitioning to sustainability, efforts to ramp up energy transition is seen, with many targeting for more renewable energy share in their grid. Leading this charge, the Green Energy Option Program (GEOP) is making sustainable actions easier for the electric power industry. GEOP is a government program designed to allow businesses to source their energy directly from renewable energy suppliers. This program provides a sustainable solution for industry players, promoting the use of low-carbon sources and decreasing the country’s dependence on nonrenewable sources, all while reinforcing their commitment to environment sustainability.
In light of this, the IEMOP spearheaded a series of retail market focus group discussions and took part in various GEOP campaigns organized by a climate advocate group, which emphasized the impact of GEOP and empow-ered end-users to choose renewable energy in meeting their energy requirements.
“The Green Energy Option Program, subsumed under the competitive retail energy market, is a mechanism to empower end-users to choose renewable energy in meeting their energy requirements,” Engr. Arjon Valencia, corporate planning and communications manager of IEMOP, said.
Also, as a central registration body for the retail market (RCOA and GEOP), the IEMOP is responsible for managing the whole process and facilitating information exchange for the program.
Optimizing capacities
Embarking on another milestone, IEMOP launched the pilot stage of the Reserve Market on Dec. 26, 2023 and implemented full commercial operations on Jan. 26, 2024. The pilot stage was designed to enhance the opti-mization of market operators and system operators interfaces, alongside streamlining the central scheduling and dispatch of contacted ancillary services, and automating real-time dispatch of committed ancillary services.
Pilot stage launch of the Reserve Market
Through the Reserve Market, the IEMOP endeavors to ensure sufficient and reliable power supply across the country. Ultimately, the Reserve Market will focus on co-optimization of electricity by providing a range of electricity services that create the best energy mix. Additionally, it will serve as a platform for investors tapping into new opportunities in regards with generating capacities for both energy and reserves. This initiative supports WESM’s goals in offering efficient yet affordable electricity in the market.
“The pursuit of a co-optimized electricity market has been a challenge since the beginning of the WESM. [But] various institutions, together with IEMOP and other stakeholders, have worked together to finally see the dawn of a co-optimized WESM. This indeed is an important achievement,” Mr. Nethercott said in a previous statement.
“The operation of the Reserve Market in the Philippine WESM is a testament to our shared commitment to the growth of the Philippine Energy Sector; a growth that ensures reliability, embraces innovation, and promotes competition, all leading to transparency and reasonableness of our power rates,” Atty. Monalisa Dimalanta, chairperson and chief executive officer of the ERC, said in another statement.
The ceremonial launch of the WESM in the Mindanao grid at Malacañang
In addition, the IEMOP also marked a milestone in the integration of the Mindanao grid to the WESM, which President Ferdinand R. Marcos, Jr. said will help lower power rates and bolster investments and economic activity in the region.
Following its ceremonial launch last year, WESM Mindanao has marked success in the first month of its operations. According to the IEMOP, the Effective Spot Settlement Price (ESSP) reported was at P5.23 per kilowatt-hour, which was driven by the significant supply margin in the region, averaging at 1,429 megawatts (MW).
Commencement of the commercial operations of WESM in Mindanao at the IEMOP control room
Moreover, WESM Mindanao’s scheduling and dispatching generators during the initial months of operations is found to have boosted the security and reliability of the electricity supply in the region’s grid. Notably, in efforts to support the region’s trading participants, the IEMOP is running roadshows, focus group discussions, as well as being actively involved with stakeholders.
Alongside the significant increase of system demand and electricity prices, one of the year’s standout projects, the Mindanao-Visayas Interconnection Project (MVIP), was launched and is now fully operational, con-necting Mindanao to the power grids of Visayas and then Luzon.
“The Mindanao-Visayas Interconnection Project has significantly improved supply security in the Visayas and Luzon grids by allowing excess power of up to 450 MW to be exported from the Mindanao grid. On average, The MVIP allowed an average of 341 MW to be exported to Visayas, whereas the Leyte-Luzon HVDC link connecting Visayas to Luzon provided an average of additional 296 MW to support meeting the demand in the Luzon grid,” the IEMOP said in a statement. — Angela Kiara S. Brillantes
BUDGET CARRIER Cebu Pacific (CEB) has finalized its aircraft order with Airbus SE, making it the largest aircraft order in Philippine history.
“This milestone signals our ongoing dedication to expanding air travel accessibility and affordability, while supporting the Philippines’ broader economic growth and connectivity goals,” CEB Chief Executive Officer Michael B. Szucs said during a press briefing on Wednesday.
In July, Cebu Pacific, operated by Cebu Air, Inc., committed to purchasing up to 152 aircraft from Airbus, valued at P1.4 trillion ($24 billion).
Mr. Szucs said the company’s agreement with Airbus covers 102 A321 new engine option (NEO) and 50 A320neo family.
“The minimum commitment is for 70 aircraft. The first commitment will be by 2029, but there is a possibility that we could, under certain conditions, bring in some aircraft ahead of that timeline,” Mr. Szucs said.
CEB said previously that it had also selected Pratt & Whitney GTF engines to power its newly purchased aircraft.
“The selection of Airbus and Pratt & Whitney underscores our focus on operational efficiency, sustainability, and innovation, ensuring that we continue to deliver the highest standards of service while significantly reducing our carbon footprint,” Mr. Szucs said.
Airbus Executive Vice-President Benoît de Saint-Exupéry has expressed confidence that adding NEO aircraft to CEB’s fleet will support the budget carrier’s expansion of short-haul flights.
“We’re confident that these additional A321neo aircraft will contribute strongly to the all-Airbus operator’s next phase of expansion as one of Asia-Pacific’s leading low-cost carriers,” he said.
Airbus’ NEO aircraft is known for its enhanced fuel efficiency, representing the latest generation of Airbus planes designed to be highly compatible with sustainable aviation fuel (SAF).
“The GTF engine will enable Cebu Pacific to continue to expand the number of routes it offers to passengers, while delivering industry-leading fuel efficiency and sustainability benefits,” Pratt & Whitney President of Commercial Engines Rick Deurloo said.
Mr. Szucs said the budget carrier has assured that funding for the aircraft order is in place. Additionally, CEB is considering financial institutions to help finance the purchase.
“On the funding, anything around pre-delivery payments, essentially the cost that needs to be made will be made out of operating cash flow. That is how we always go,” Mr. Szucs said.
CEB aims to capture the growing travel demand in Manila, citing the recent takeover of Ninoy Aquino International Airport operations by New NAIA Infrastructure Corp., led by San Miguel Corp. (SMC).
“In terms of where we’re going to deploy this, we see a lot of development here in Manila. It is an enormous metropolis with great potential, and it’s now getting infrastructure development,” he said.
SMC is also developing the P740-billion Bulacan International Airport or the New Manila International Airport, which is expected to start to be operational by 2028.
“We need to have an entirely new set of aircraft to come in and take up the opportunity that sits at Bulacan. So that’s a major growth that we need to put in to coincide with that,” he said.
The airline currently serves 35 domestic and 26 international destinations across Asia, Australia, and the Middle East.
THE PHILIPPINES’ information technology-business process management (IT-BPM) sector is facing increased pressure to report cybersecurity breaches, an expert said.
“I think there is double pressure to do reporting because you report to someone abroad,” Dominic Vincent D. Ligot, head of artificial intelligence and research at the Information Technology & Business Process Association of the Philippines (IBPAP), said during a forum on Wednesday.
“These firms are interested in knowing if there are cybersecurity policies in place,” he said in a separate interview with BusinessWorld. “Especially those coming from places like Europe, where they have very strict privacy laws. Of course, the US is our biggest geography,” he said.
“But you have the likes of JPMorgan Chase & Co. These are banks. They would not send work here if they were not confident that they can secure the data,” he added.
When asked about the impact of cybersecurity incidents on IT-BPM firms, he highlighted the potential loss of credibility.
“Other than India, the Philippines is the next choice. But, for example, if we see the credibility of the Philippines fall, then the third-rate countries will be the ones to step up,” he said.
Mr. Ligot noted that cases of cyber breaches in IT-BPM are low. One of the most recent ones involved Maxicare Healthcare Corp., a third party.
He said that as the industry creates more jobs in the country, it should also be mindful of its third-party relationships.
“The problem is no one really reports incidents because our laws and policies prevent companies from reporting, and unfortunately, this is being weaponized by the threat actors,” said Angel T. Redoble, chairman and founding president of the Philippine Institute of Cyber Security Professionals.
He said cybercriminals threaten firms that if they do not pay, they will tell regulators that they have been compromised.
“It’s not encouraging our organizations or businesses to report because you get penalized,” Mr. Redoble added.
He also said firms do not necessarily have to build their own cybersecurity systems but can outsource third-party services, which must be end to end.
“An end-to-end cybersecurity practice covers the four layers of defense: the governance layer, the risk layer, the compliance layer, and the operations layer,” Mr. Redoble said.
Internally, he said properly informed and equipped users become a force multiplier. This means that as you secure the users, the business and enterprise follow through.
“So instead of calling them your weakest link, you start training them to become your force multiplier and your cybersecurity evangelist. With the change of mindset, you change the culture of the organization,” he said.
Mr. Ligot said IBPAP put together a framework called the 4Es, which comprises education, engineering, enforcement, and ethics, intended not just for AI. — Aubrey Rose A. Inosante
RASLAG Corp. has activated its 36.646-megawatt-peak solar power plant in the municipality of Magalang in Pampanga, the renewable energy company said on Thursday.
The Pampanga solar power project, the company’s fourth and largest solar facility to come online, is expected to produce 53 gigawatt-hours of electricity and power 24,000 homes annually.
Raslag is also expecting P285 million in revenues in its first year of operations.
The project has started testing and commissioning to connect to the 69-kilovolt transmission line of the National Grid Corp. of the Philippines.
“We are thrilled to have already completed four organic projects to help meet our nation’s growing energy demand. The RASLAG-4 project marks another step towards putting power back into the hands of Filipinos,” Raslag President and Chief Executive Officer Robert B. Nepomuceno said in a statement.
With the latest project, Raslag’s total installed capacity increased to 77.844 megawatts (MW) in two years of being a publicly listed company.
The company is aiming to increase its renewable energy portfolio to at least 1,000 MW by 2035, with three more projects already underway.
Its next solar project will rise in Sta. Rosa, Nueva Ecija, and is targeted to come online by 2026.
In January, Raslag announced its plan to purchase land parcels with an estimated aggregate area of over one million square meters in the province for around P807.73 million. The sites will house Raslag 7 and Raslag 8 solar projects.
The company develops, owns, and operates solar power plants to provide utility-scale renewable energy to grid customers.
At the local bourse on Thursday, shares in the company increased by 3.81% to close at P1.09. — Sheldeen Joy Talavera
ROSEMARIE P. RAFAEL is a 
