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Saturday, February 15, 2025 Vol. 20 No. 126
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FOREX-TIED INFLATION BEHIND RATE-CUT BRAKE
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By Andrea E. San Juan
BOC seizes ₧1.4-B luxury cars in Pasay, Parañaque
FOOTAGELAB | DREAMSTIME.COM
CONOMISTS noted on Friday that the Bangko Sentral ng Pilipinas’ (BSP) recent move of hitting the brakes on policy rate cuts will help lessen the risk of foreign exchangeinduced inflation, taking into account the“renewed” strength of the US dollar.
In a commentary on Friday, HSBC Economist for Asean Aris Dacanay explained the Central Bank’s “rationale” of pausing its easing cycle, saying it was clear that the BSP “wanted monetary policy to be flexible amidst the uncertainties in global trade.” In particular, he noted that pausing the easing cycle “would lend support to the peso and mitigate the risk of FX-induced inflation if, say, US trade policies lead to renewed USD strength.” In a televised interview on Friday, BSP Governor Eli M. Remolona Jr. said there is a possibility that the peso could fall to P60 against the US dollar. “It is a possibility. We don’t worry too much about the number itself. We worry about large swings in the exchange rate because it’s when we have large swings that we get this inflationary effect of the exchange rate,” Remolona said. The BSP chief explained this in the context that some of the Philippines’s imports are “invoiced in dollars.” Hence, he said, “If the swings are large enough, then we can get inflationary effects. And then we’d like to dampen those swings somehow.” Asked about the current dynamics between the dollar and the peso, the BSP chief said, “They are driven largely by the strength of the dollar. That has been the case since the beginning of the year.” A day after the seven-man
“We worry about large swings in the exchange rate because it’s when we have large swings that we get this inflationary effect of the exchange rate.” — Eli M. Remolona Jr., BSP Governor
Monetary Board of the BSP decided to keep the policy rate at 5.75 percent, some economists shifted the timing of their rate cut forecasts. Dacanay noted that HSBC previously forecasted no cuts in the second quarter of 2025. However, it now anticipates the BSP to resume cutting policy rates during the June 2025 Monetary Board meeting. “We expect BSP to reduce the policy rate by 25bp to 5.50 percent. We do not change our forecasts for 2H 2025,” the HSBC economist for Asean noted, adding that HSBC continues to expect a 25-bp rate cut each in August and December of this year, with the yearend policy rate settling at 5 percent. Dacanay noted, however, that these projections rest on the assumption that the Fed will reduce its Continued on A2
GRAND THEFT AUTO BOC seizes P1.4B worth of luxury cars—including Ferrari, Lamborghini, Maybach and Maserati—in Pasay and Parañaque warehouses on February 13, 2025. BUREAU OF CUSTOMS
By Ada Pelonia
T HISTORY ON ICE!
Christian Haller (left) and Alan Frei in action on the way to a 5-3 victory over South Korea as the Philippines wins a firstever winter sports gold medal in men’s curling at the Ninth Asian Winter Games in Harbin, China, on Friday morning. The Philippines emerges as the best-performing Southeast Asian team in Harbin, with Thailand claiming bronze in men’s freestyle skiing. The Asian Winter Games are staged once every four years. Haller and Frei later join (from left) Curling Pilipinas secretary-general Jarryd Bello, Jessica Pfister, coach Miguel Gutierrez, playing president Benjo Delarmente, Enrico Pfister and Mark Pfister during the post-event press conference at the Harbin Pingfang Curling Arena. Story in Sports, A17. AP/AARON FAVILA AND JOSEF RAMOS
HE Bureau of Customs (BOC) seized P1.4 billion worth of imported luxury vehicles in the warehouses it raided in Pasay and Parañaque cities on Thursday. In a statement, the bureau said it received photographs of allegedly smuggled luxury vehicles, including Ferrari, Lamborghini, Maybach and Maserati, being sold online. This prompted the agency to move and verify the legitimacy of the vehicles’ importation and determine if the correct duties and taxes due were paid. Continued on A2
Strategic investments may bring new alien workers to PHL–DOLE
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HE Department of Labor and Employment (DOLE) expects an increase in foreign workers entering the Philippines in 2025 as strategic investments bring in highly skilled professionals across key industries. With businesses expanding and fresh capital flowing in, the government has tightened regulations on Alien Employment Permits (AEPs) to ensure that foreign expertise contributes to local workforce development. Bureau of Local Employment Director Patrick Patriwirawan said the updated AEP guidelines, issued under Department Order 248, Series of 2025, aim to balance investor needs with local job protection. While the changes streamline busi-
FOREIGN DIRECT INVESTMENTS (FDI) IN 2024 Total (Jan–Nov): $8.6B (+4.4% YoY) n November alone: $901M
“While we approve the employment of foreign nationals, there must be a transfer of skills and competencies to Filipino counterparts.” — Patrick Patriwirawan, Bureau of Local Employment Director
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ness requirements, they also introduce stricter evaluation measures to prioritize Filipino workers. Employers hiring foreign na-
tionals must now implement an Understudy Training Program and Skills Development Program to equip local employees with the
TOP AEP HOLDERS (2022–2024) Chinese Workers: 73,518 n Vietnamese Workers: 43,580 n
BM Graphics: Ed Davad
FOREIGN WORKERS & STRATEGIC INVESTMENTS IN THE PHILIPPINES (2025)
By Justine Xyrah Garcia
competencies needed to eventually assume these roles. “While we approve the employment of foreign nationals, there must be a transfer of skills and competencies to Filipino counterparts to ensure that the [aliens’] employment is not long term, but there will be a transition of skills so that the Filipino can replace the foreign national,” Patriwirawan told the BusinessMirror. The new rules also introduce an Economic Needs Test to determine whether hiring a foreign worker is justified based on the availability of qualified local talent. Regional evaluators will conduct stricter site inspections to verify the legitimacy of businesses applying for foreign labor permits. In November 2024, foreign
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
24 INCH GAUGE CONSTRUCTION INC. Lot 4519a-b Manalo Compound, 4th Estate Subdivision, San Antonio, City Of Parañaque
CAI, YINQIAO Marketing Specialist 1.
Brief Job Description: Responsible for coordinating with other marketing and sales professionals to implement innovative campaigns for branding or product launches.
Basic Qualification: Ability to work under pressure and motivation to succeed in a competitive environment, should have a bachelor’s degree in journalism, marketing, communications or a related field and with good communication and interpersonal skills. Salary Range: Php 30,000 - Php 59,999
See “dole ncr” on A13-A16
Continued on A2
PESO EXCHANGE RATES n US 58.2150 n JAPAN 0.3810 n UK 73.1646 n HK 7.4747 n CHINA 7.9857 n SINGAPORE 43.3502 n AUSTRALIA 36.7628 n EU 60.9220 n KOREA 0.0405 n SAUDI ARABIA 15.5219 Source: BSP (February 14, 2025)