‘Rising costs hit January factory production’
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ACTORY output in the Philippines slowed to a five-month low in January due to greater competition and expensive raw materials, according to S&P Global Market Intelligence. In its latest Purchasing Managers Index (PMI) report, S&P Global Market Intelligence said the country’s PMI score reached 52.3 in January, slower than the 32-month high of the 54.3 score posted in December 2024. S&P Global Market Intelligence said that while this pointed to an improvement of manufacturing conditions in the growth—the PMI score remains above the 50 threshold score—it was a five-month low. “The solid underlying demand
trends contributed to a further rise in manufacturing output. However, the growth rate was the second-weakest in the current 10-month sequence of increase, as competition and rising raw material prices reportedly limited production activity,” the report stated. The report noted that cost burdens and output charges both increased but at “historically subdued rates.” “Rising prices for materials and transportation contributed to higher cost burdens, which manufacturers opted to largely pass on to their clients,” it stated. Nonetheless, S&P Global Market Intelligence said if demand for Filipino goods continues to improve, factories may hire more workers to raise their output.
S&P Global Market Intelligence economist Maryam Baluch said their survey also showed that the May 2025 polls are likely to boost manufacturing output this year. Baluch said industrial production growth this year is projected at 3.9 percent in 2025, up from 2.4 percent in 2024. “The election year is also likely to provide a general boost to the manufacturing sector, as highlighted by some survey respondents,” Baluch said. “In fact, the anticipation of greater demand has already prompted goods producers to increase their inventory levels.” The data also showed that expectations of higher sales led manufacturers to boost their purchasing
activities in January. S&P Global Market Intelligence said many firms concentrated on stock building. Stocks of finished goods rose following a sharp decline in December 2024. This was despite the presence of supply chain issues, such as the shortage of delivery trucks and port congestion. Nonetheless, S&P Global Market Intelligence said the “decline in vendor performance was the least pronounced in five months.” The growth in new sales saw the increase in firms hiring more workers. But this increase was offset by reports of resignations leaving manufacturing employment growth “largely stagnant” in January 2025.
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UNIVERSAL TARIFF PLAN OF TRUMP WORRIES PHL n
Govt declares food security emergency to
By Andrea E. San Juan & Cai U. Ordinario
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HE Department of Trade and Industry (DTI) said it will work closely with the United States government to address the concerns of the Philippines over the recently proposed universal tariff on imports. Washington’s new tariff policy and a slowdown in monetary easing globally could raise uncertainties for Philippine economic growth this year, according to think tank Moody’s Analytics. “We will actively engage in discussions to find a mutually beneficial solution that supports both our economies and further strengthens our trade and investment ties, including the possibility of preferential trade agreements,” Trade Secretary Cristina A. Roque told reporters in a Viber message on Monday. Roque said the DTI believes that free and open trade is essential for economic growth both in the Philippines and globally. “We are working earnestly with our trading partners, including the US, to ensure that trade remains a driving force for prosperity,” she said. “Since the US is the Philippines’s major trading partner and 8th largest export market for its agricultural products, the proposed universal tariff could potential impact Philippine exports to the US,” she added. The extent of the impact, the Trade chief said, will depend on a number of factors, including the final tariff rate and the response of other countries. “With this, the DTI is committed to ongoing dialogue with the US administration to convey our concerns about the proposed universal tariff,” she said. “We are confident that through collaboration and open communication, we can reach a resolution that is beneficial to both our nations and our people,” she added. Latest data from the Philippine Statistics Authority (PSA) showed that the United States is the Philippines’s top export destination as Philippine outbound shipments to the US amounted to $12.12 billion. The US accounted for a 16.6-percent share of Philippine merchandise exports which amounted to $73.21 billion in 2024. Roque made her pronouncements a few days after the Foreign Buyers Association of the Philippines (FOBAP) said Philippine exporters of hard goods and garments are hoping for the reauthorization of the US Generalized Scheme of Preference (GSP) and for the government to start talks for a trade agreement (FTA) with the US. FOBAP President Robert Young said that if the GSP is not reauthorized, the industry “will just be flat, we See “Tariff,” A2
lower rice prices By Ada Pelonia @adapelonia
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WIRED FOR THE JOB Amid a tangled web of electric lines, electric linemen work inside an aerial work platform to reach the electric meters along Zobel Roxas Street in San Andres,
Manila. This came as the Manila Electric Company (Meralco) announced a reduction of P0.2189 per kWh in the electricity rate this January, bringing the overall rate for a typical household to P11.7428 from the previous month’s P11.9617 per kWh. ROY DOMINGO
HE Department of Agriculture (DA) declared on Monday a food security emergency on rice due to the “extraordinary spike” in the price of the country’s food staple. Agriculture Secretary Francisco Tiu Laurel Jr. signed Department Circular (DC) 3, which authorized the declaration based on recommendations from the National Price Coordinating Council (NPCC). The DA said the decision follows a determination by the NPCC, chaired by Trade Secretary Maria Cristina Roque, that local prices have remained high despite the easing of global rice quotations and slashed rice tariffs to 15 percent. “This emergency declaration allows us to release rice buffer stocks held by the National Food Authority [NFA] to stabilize prices and ensure that rice, a staple food for millions of Filipinos, remains accessible to consumers,” Laurel said in a statement. The agency noted that NFA currently holds a buffer stock of about 300,000 metric tons (MT) of rice, 50 See “Govt,” A2
U.S. PROTECTIONISM MAY DENT
ASIA’S EXPORTS, CURRENCIES By Ma. Stella F. Arnaldo Special to the BusinessMirror
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SIA will continue its strong performance this year, with its economies expanding by an average 4 percent, exceeding the projected global average of 3.3 percent. According to the Asia House Annual Outlook 2025, India, Vietnam and the Philippines will be the region’s “star performers,” with the latter’s economy, especially predicted to expand by 6.25 percent, “driven
in large part by developments in its service sector economy and in private consumption growth.” Last year, the Philippine economy grew by 5.6 percent, less than the government target of 6-6.5 percent. However, Asia House noted that no country in the region will be spared from the impact of higher tariffs imposed by the United States. Over the weekend, the Trump administration announced 25-percent import duties on Canadian and Mexican goods, and an additional
10-percent levy on goods imported from China. This could force China to dump its excess goods on its Asian neighbors, said the report, impacting on their domestic industries. Indonesian textile companies, for instance, have already closed due to cheaper fabric imports from China. Preliminary estimates by the Philippine Statistics Authority showed $32.82 billion in imports from mainland China in 2024, while Philippine exports See “U.S.,” A2
NOTICE OF FILING OF APPLICATION/S FOR ALIEN EMPLOYMENT PERMIT/S (AEP/S) Notice is hereby given that the following companies/Employers have filed with this Regional Office application/s for Alien Employment Permit/s: ESTABLISHMENT / ADDRESS No.
NAME OF FOREIGN NATIONAL , POSITION AND BRIEF DESCRIPTION
QUALIFICATION AND SALARY RANGE
ALSONS/AWS INFORMATION SYSTEMS, INC. 4/f 4/f Don Jacinto Bldg., 141 Salcedo St., San Lorenzo, City Of Makati
SAKAI, SHINICHI Team Sublead 1.
Brief Job Description: Responsible for the operation and maintenance of applications for Japanese clients and for the maintenance of development work which includes estimation, investigation of solutions and creation and updating of documents.
Basic Qualification: College graduate, with previous work experience in a similar role and with excellent technical and communication skills. Salary Range: Php 90,000 - Php 149,999
See “dole ncr” on A6-A7
PESO EXCHANGE RATES n US 58.3750 n JAPAN 0.3769 n UK 71.7662 n HK 7.4899 n CHINA 8.0651 n SINGAPORE 42.7155 n AUSTRALIA 35.9240 n EU 59.9161 n KOREA 0.0401 n SAUDI ARABIA 15.5642 Source: BSP (February 3, 2025)