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Wednesday, July 2, 2025 Vol. 20 No. 262
P25.00 nationwide | 2 sections 22 pages | 7 DAYS A WEEK
By Cai U. Ordinario
HE country’s manufacturing sector continued to be “weighed down by a stalled exports picture” despite a slight improvement in its Purchasing Manager’s Index (PMI) score in June, according to the S&P Global Market Intelligence. MANUFACTURING SECTOR SUBDUED DESPITE MODEST PMI UPTICK June PMI climbs slightly to 50.7, but growth remains tepid amid weak exports and tariff uncertainty PHL Manufacturing PMI
50.1
EXPORT HEADWINDS Why is growth still weak?
50.7
May 2025 June 2025 ☞Above 50 = Expansion Below 50 = Contraction
→Stalled exports picture →Input delays & material shortages →Slow new orders growth →Limited production capacity New orders continue to rise... but at a historically muted pace. — Baluch
[PMI] showed a modest improvement, but the performance remains subdued. —Maryam Baluch, S&P Global
The report said the country’s manufacturing PMI rose to 50.7 in June from 50.1 in May 2025. This, S&P Global Market Intelligence said, indicated a “modest improvement” in the sector’s growth. This also reflected a subdued performance by the local manufacturing sector in the first six
TRUMP TARIFF UNCERTAINTY →Key decision point→End of 90-day pause on reciprocal US tariffs
Frontloading →early exports to avoid upcoming tariffs or delays
If there is really frontloading, then one would see a correction... as the production schedules will correct. — Former Tariff Commissioner George Manzano
BRIGHT SPOTS (Baluch) Recovery in employment (First uptick in 4 months) Output increased (Reversed May’s decline) Lower inflation (More pricing power for manufacturers)
BM Graphics: Ed Davad | Illustration: Aleksey Gulyaev via Dreamstime.com
PMI SNAPSHOT
months of the year, according to Maryam Baluch, Economist at S&P Global Market Intelligence. “While new orders continue to rise, they do so at a historically muted pace, weighed down by a stalled exports picture. Additionally, supply-side challenges, such See “Stalled,” A2
AIR FREIGHT RATES TO U.S. SEEN RISING ON TIGHT CARRIER SPACE
A
IR freight rates from the Philippines to the United States are seen to rise in July amid the ongoing Iran-Israel conflict due to the tightened space availability for some carriers, according to a report published by Dimerco, a global logistics service provider. “The ongoing Iran-Israel conflict has tightened space availability for some carriers, especially in the Middle East,” Dimerco said on the Philippines’s air freight forecast for July. Based on Dimerco’s Freight Market Forecast for July, air freight rates from the Philippines to Asia will remain stable with soft capacity, meaning there is more supply than demand. Air shipping rates from the Philippines to Europe also remain stable; the report noted that there is an upturn, meaning the market is picking up, but demand for space can still be
met by current supply. As to the air freight rates to the United States, fees are expected to rise because of an upturn, with the Middle East conflict as the culprit behind the tightened space availability. The logistics provider pointed out that the ongoing crisis in the Middle East may affect routes between Asia and Europe. “Airlines are expected to reduce flight frequencies in response to potential disruptions in capacity and routing,” Dimerco noted. “Intra-Asia traffic is holding strong, especially on routes linking China with Taiwan, Vietnam, Thailand, Malaysia, and Singapore. Capacity on these lanes is tight, and we’re seeing higher rates compared to the same period last year,” Kathy Liu, VP, Global Sales and See “Air,” A2
BELLS AND GAINS President Ferdinand R. Marcos Jr. (center) rings the opening bell at the Philippine Stock Exchange (PSE) in Bonifacio Global City on Tuesday, July 1, 2025, to mark the first trading
day under the Capital Markets Efficiency Promotion Act (CMEPA), which slashes the stock transaction tax from 0.6 percent to 0.1 percent. Joining him are (from left) SEC Chairperson Atty. Francis Ed. Lim, Senator Sherwin T. Gatchalian, SAPIEA Secretary Frederick D. Go, DOF Secretary Ralph G. Recto, PSE Chairman Jose T. Pardo, PSE President and CEO Ramon S. Monzon, PSE Director Ma. Vivian Yuchengco, former Chief Justice Teresita J. Leonardo-De Castro, and Atty. Marilyn A. Victorio-Aquino. The law is expected to boost investor confidence, promote inclusive financial participation, and generate over P25 billion in revenue by 2030. PHOTO COURTESY OF PSE
With CMEPA in place, Marcos upbeat on local bourse trading By Samuel P. Medenilla and VG Cabuag
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ITH the full implementation of Republic Act (RA) No. 12214 or the Capital Markets Efficiency Promotion Act (CMEPA) on Tuesday, President Ferdinand Marcos looks forward to a surge in trading in the local bourse by making it accessible to more Filipinos. By reducing the stock transaction tax (STT) from 0.6 percent to 0.1 percent and removing documentary stamp tax on mutual funds, the new law is expected to encourage more people to invest in the stock market and make it more competitive to its Association of Southeast Asian Nations (Asean) peers, according to the chief executive. He said the country’s previous STT rate was the highest in Asean. “It empowers the small business owner, the young professional, and
the overseas Filipino worker to start investing their hard-earned money to build a better future,” Marcos said in the special bellringing ceremony at the PSE office in Taguig on Tuesday. Despite the tax reduction, the Department of Finance (DOF) projected the new legislation will help the government generate P25 billion of net revenue in the next five years through increased volume in stock trading. Marcos ordered the Philippine Stock Exchange, Inc. (PSE) to ensure the full implementation of RA 12214 by streamlining their procedures, removing bureaucratic bottlenecks, and reducing transaction costs. In his speech during the event, PSE president and CEO Ramon S. Monzon agreed with the President that the new law is not the “panacea” to solve the stock market’s liquidity issues.
He said the STT reduction should be complemented by increasing the number of the PSE-listed firms and expanding the reach of their product and service offerings. The PSE chief they are determined to find more ways for people to invest in the stock market than online gambling and other nonessentials items. The PSE said it has already taken steps to increase market liquidity in the long term basis such as signing a memorandum of understanding with the Department of Migrant Workers to conduct learning sessions for overseas Filipino workers and their families on personal finance and stock market investment, while also protecting them from investment scams. An MOU with the Commission on Filipinos Overseas was also signed to showcase its PSE Academy website and its online and mobile app-based See “CMEPA,” A2
DOLE leans on welfare schemes as biz expansion outlook weakens By Justine Xyrah Garcia
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ITH fewer businesses planning to expand in the months ahead, the Department of Labor and Employment (DOLE) said it is relying on its existing welfare programs to cushion the impact of potential job losses and slower hiring. Data from the Q2 2025 Business Expectations Survey of the Bangko Sentral ng Pilipinas (BSP) showed that the Employment Outlook Index dropped to 15.4 percent for the third quarter, down from 16.5 percent in the previous survey. The 12-month outlook also fell to 26.9 percent, from 29.6 percent. See “Dole,” A2
PESO EXCHANGE RATES n US 56.3780 n JAPAN 0.3915 n UK 77.4521 n HK 7.1821 n CHINA 7.8701 n SINGAPORE 44.3467 n AUSTRALIA 37.0798 n EU 66.4302 n KOREA 0.0417 n SAUDI ARABIA 15.0333 Source: BSP (July 1, 2025)