‘Focus on red tape, graft, not tariffs’ By Andrea E. San Juan
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HE Philippines should channel its efforts to solving red tape, corruption and market access issues rather than worrying over the concessions it can offer to the United States amid the recent implementation of additional tariffs by Washington, according to the top official of the Philippine Exporters Confederation Inc. (Philexport). In an interview with reporters on the sidelines of Philippine Chamber of Commerce and Industry’s (PCCI) First General Membership Meeting, Philexport President Sergio R.
Ortiz-Luis Jr. said local exporters should work on improving market access to “the market that we are losing…China.” “If you combine Greater China, Hong Kong, Macau, they’re more than double US and Japan. So it’s important. We should continue developing other markets,” Ortiz-Luis said. Preliminary data from the Philippine Statistics Authority (PSA) showed that Philippine merchandise exports to the People’s Republic of China amounted to $9.44 billion while the country’s exports to Hong Kong reached $9.6 billion in 2024. Total exports of these two econ-
omies which are included in the Greater China region amounted to $19.04 billion—outweighing the country’s exports to the United States, at $12.12 billion last year, PSA data showed. Meanwhile, Philippine goods exports to Japan amounted to $10.33 billion last year. The Philexport chief said this as he explained that there is no need for the country to counter the tariff moves of Washington nor offer any concessions in the middle of what he described as a “fluid” situation. He added that it’s best to “just keep quiet and watch” amid recent developments in global trade. “We are not in a position to ne-
gotiate at this time. That’s why I find corny suggestions on what we should offer...We are not a big market. Let’s not overestimate our importance to them [the US],” OrtizLuis said, partly in Filipino. “We’re not asking for anything because the way it is, it’s okay. We can even have opportunities. The problem is, knowing Trump, it’s still fluid. He might change his mind in some aspects,” added the Philexport chief. Zooming in on the market access issues of the Philippines to China, Ortiz-Luis noted that Philippine exports’ market share in China declined.
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Monday, April 14, 2025 Vol. 20 No. 184
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DEBT SERVICE DIPS 65% ON LOW AMORTIZATION T By Reine Juvierre S. Alberto
HE steep decline in amortization brought the national government’s debt service bill to P158.664 billion as of the end of February, according to the Bureau of the Treasury (BTr). Latest data from the Treasury showed the debt payments dropping to P158.664 from January to February 2025—or lower by 64.93 percent than the P452.513 billion the government settled in the same period a year ago. Broken down, 96.35 percent of the government’s debt service bill for the month was composed of interest payments, while the rest was spent on amortization. Notably, amortization, or the repayment of principal debt, plunged to P5.784 billion. This is a significant 98.24-percent decrease from the P330.465 billion the government settled in the same period in 2024, and one analyst said the
trend could continue in the coming months, now that the Bangko Sentral ng Pilipinas (BSP) is back on an easing cycle. Lower interest rates or extended repayment terms may have contributed to the sharp decline in amortization, according to Jonathan Ravelas, senior adviser at Reyes Tacandong & Co. “Such a decrease could be attributed to various factors, including improved fiscal management, restructuring of debt, or favorable economic conditions,” Ravelas said. Only P438 million in amortization was paid to domestic creditors compared to last year’s See “Debt,” A2
TPB BRACES FOR POSSIBLE U.S., KOREAN VISITOR SLOWDOWN A LABOR OF FAITH AND TRADITION Tom Nepomuceno, 54, carefully arranges the Roman soldier costumes, adding final touches ahead of Cainta’s Holy Week observance. This Good Friday, he will step into one of these costumes himself—taking part in the dramatic reenactment of Christ’s trial and walk to Calvary. The street play, organized by Krus ng Kalbaryo Inc., marks its 30th year of bringing the Passion of Christ to life in Cainta, Rizal, through a grand parade and moving Stations of the Cross. Elsewhere in Barangay Santa Rosa, the Fernandez family home echoes with the somber chants of the Pabasa, as neighbors gather to sing the Passion of Christ—a devotion passed down through generations. BERNARD TESTA
Economists’ projection: BSP to cut rates twice more in ’25 THE Philippines Pavilion, inspired by Filipino weaving traditions, officially opens at the Expo Osaka 2025. Designed by Carlo Calma Consultancy, the Pavilion was constructed using over 1,000 rattan threads and features 212 handwoven panels; it was listed among the “top 20 most awaited pavilions” by an architecture and graphic design portal. The Expo Osaka 2025 opened on April 13 and will last until October 13, 2025. COURTESY TPB
By Ma. Stella F. Arnaldo Special to the BusinessMirror
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HE Tourism Promotions Board (TPB) gave assurances at the weekend that programs are being put in place to head off any possible slowdown in visitor arrivals this year due to the weakening of the South Korean won and the United States’ crackdown on green-card holders, among which have been Filipino-Americans.
In a Viber message to the BusinessMirror, TPB Chief Operating Officer Maria Margarita Montemayor Nograles said, “We remain committed to strengthening our marketing efforts in South Korea and the United States to ensure the Philippines continues to be top of mind in these markets so their citizens’ keep visiting us.” Nograles, who is currently in Osaka where she led a delegation to the opening of the Philippines Pavilion at the World Expo 2025 said, See “TPB,” A2
T
HE Bangko Sentral ng Pilipinas (BSP) is poised to deliver two more rate cuts this year, bringing the key policy rate down to 5 percent, to mark the end of the easing cycle, according to economists. In HSBC Global Research’s latest commentary, HSBC Asean Economist Aris Dacanay said the central bank has “swung into dovishness,” quoting BSP Governor Eli M. Remolona Jr. saying there’s a “shift toward a more accommodative monetary policy stance.” The BSP lowered the key policy rate by 25 basis points to 5.50 percent in its rate-setting meet-
ing on Thursday last week. The interest rates on the overnight deposit and lending facilities were also reduced to 5 percent and 6 percent, respectively. (See: https://businessmirror.com. ph/2025/04/11/ bsp-lowerskey-rate-by-25-bps-more-cutsseen/). With the BSP more dovish, Dacanay said the key policy rate could be brought down by 50 basis points by the end of the year. The central bank could reduce key policy rates alternately in its rate-setting meetings, lowering the policy rate by 25 basis points in August and in December.
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PESO EXCHANGE RATES n US 57.2230 n JAPAN 0.3959 n UK 74.2468 n HK 7.3756 n CHINA 7.8248 n SINGAPORE 42.9828 n AUSTRALIA 35.6099 n EU 64.0669 n KOREA 0.0394 n SAUDI ARABIA 15.2448 Source: BSP (April 11, 2025)