PSA: Manufacturing prices grow faster in Jan By Bless Aubrey Ogerio
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BREEZY BREAK FROM THE URBAN HEAT With Metro Manila experiencing a high heat index of 43°C, March 4, 2025, as reported by PAGASA, a seaside retreat like Nasugbu, Batangas, offers an ideal escape from the sweltering temperatures. Known for its white sand beaches and stunning coves, this coastal destination invites you to soak in the sea breeze and unwind under the shade. MILA LUMACTAO
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ACTORY gate prices in the country rose at a faster pace in January this year, reflecting an uptick in manufacturing costs, according to the Philippine Statistics Authority (PSA). Data from the PSA showed that the Producer Price Index (PPI) for manufacturing grew 0.8 percent year-on-year, picking up from the 0.1-percent increase recorded in December 2024. In contrast, the index posted a 1.1-percent annual decline in January 2024. “The faster annual increase of PPI for the manufacturing sec-
tion in January 2025 was primarily due to the acceleration in the annual rate of the PPI for manufacture of chemical and chemical products industry division,” the PSA stated. The said industry’s PPI increased by 2.4 percent in January 2025, up from the 1.4-percent annual increase recorded in December 2024. Additionally, it accounted for 30.3 percent of the acceleration in the yearly PPI growth for manufacturing in January this year. Among the 22 industry divisions for manufacturing, the PSA noted that “the manufacture of chemical and chemical products has the sixth highest weight in
the computation of PPI.” Other key contributors to the PPI’s annual increase included coke and refined petroleum products, which rose to 1.4 percent from 1.0 percent in December, as well as rubber and plastic products, which rebounded to 0.7 percent from a 0.3-percent decline. “Of the remaining 19 industry divisions, 13 exhibited annual increases, while six industry divisions registered annual decreases during the period,” the agency said. Month-on-month, the PPI for manufacturing fell by 0.6 percent in January this year, marking a steeper drop compared to the 0.4- percent decrease in
December last year. In January 2024, the index posted a 1.2-percent monthly contraction. “The top contributor to the faster decline in the monthly rate of PPI in January 2025 was the manufacture of food products,” the PSA said. Prices, it reported, fell by 1.3 percent in January this year after inching up by 0.1 percent last December. Other industries contributing to the decline were computer, electronic and optical products, which saw a 1-percent drop from 0.7 percent in the previous month; and machinery and equipment (excluding electrical), which declined by 0.8 percent from 0.1 percent. See “PSA,” A2
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Wednesday, March 5, 2025 Vol. 20 No. 144
P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK
By Reine Juvierre S. Alberto @reine_alberto
HE peso depreciation continued to weigh on the government’s outstanding debt, pushing it to a new record high of P16.312 trillion as the Philippines opened the year, based on the latest data from the Bureau of the Treasury (BTr). The national government’s outstanding debt grew by 1.63 percent to P16.312 trillion as of end-January 2025 from P16.051 trillion as of end-December 2024. The increase in debt stock was due to the government’s taking on more debt in January as well as the peso weakening against the US dollar, moving from P57.847 at the end of 2024 to P58.375 at the end of January 2025, according to the Treasury. Year-on-year, outstanding debt expanded by 10.29 percent from P14.790 trillion as of end-January 2024. Broken down, the total debt stock comprised domestic debt at
67.9 percent, while external obligations comprised the remaining 32.1 percent. Domestic debt amounted to P11.084 trillion as of end-January 2025, 1.41 percent higher than the P10.930 trillion recorded in end-December 2024. This was due to the government’s issuance of P270.01 billion in new securities and paying off P117.84 billion for its debts. The peso depreciation against the US dollar added P1.51 billion to the domestic debt stock. Local borrowings also rose by 9.07 percent year-on-year from P10.162 trillion. Domestic debt See “Debt,” A2
WITH AN EYE TO GOLDEN YEARS, MORE PINOYS INVEST IN ‘PERA’
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ORE Filipinos are investing for their golden years, as voluntary contributions to the Personal Equity and Retirement Account (PERA) program grew double digits year-on-year in 2024. Latest data from the Bangko Sentral ng Pilipinas (BSP) showed contributions to Pera increased by 23.9 percent to P491.387 million as of end-December 2024, from P396.309 million during the same period in 2023. Similarly, total contributors rose by 6.42 percent year-onyear to 5,912 from 5,555. The bulk, or 71.22 percent, of the total contributors were employees who contributed P341.747 million. Self-employed individuals, 15.42 percent of the total contributors, allotted P67.391 million voluntarily. Meanwhile, overseas Filipino
workers (13.34 percent) apportioned P82.248 million. Pera is a voluntary retirement savings program launched in 2016 to supplement the existing retirement benefits from the Government Service Insurance System, the Social Security System and private employers. Among the advantages of Pera is a 5-percent income tax credit on the actual Pera contribution which can be used to pay income tax liabilities as well as the exemption from taxes on all income earned from the investments and reinvestments. The maximum aggregate annual contribution is P100,000 except for overseas Filipinos who can contribute up to P200,000 annually. For married individuals, each spouse can contribute up to P100,000. See “Eye,” A2
DRUM ROLL(BACK), PLEASE! A man fills up a fuel drum at a gasoline station in Makati City, taking advantage of the recent fuel price rollback. The decrease follows weeks of consecutive price hikes and is largely influenced by escalating trade tensions. The US recently imposed 25 percent tariffs on goods from Canada and Mexico, prompting retaliatory measures that have rattled global markets and stoked fears of an economic slowdown. Lower demand expectations have pressured oil prices, contributing to the local rollback. NONIE REYES
1.15-M foreign visitors arrived in Jan-Feb ’25 By Ma. Stella F. Arnaldo Special to the BusinessMirror
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OTELS, not vacation rentals, remain the top choice for international travelers, with direct bookings increasing. According to the World Travel Monitor (WTM) prepared by think tank IPK International for ITB Berlin, “Most travelers still opt for traditional hotels, which are particularly appreciated for their service and wide range of offers. However, alternative, commercially marketed types of accommodation, including holiday apartments or private holiday rentals, are also becoming increasingly popular. At the same time, the number of people opting
to stay free of charge with friends or relatives remains stable.” This bodes well for the Philippines which will be seeing the opening of 158 new hotels and resorts with over 40,000 keys in the next few years, attracting some P250 billion in private investments. Of the total keys in the pipeline, 54 percent are owned and are being constructed by the following developers: DoubleDragon Corp. (4,324 keys); Megaworld Hotels and Resorts (3,889); Hann Philippines (2,850); The Henann Group (2,800); Anchor Land Holdings (2,270); SM Hotels and Conventions Corp. (1,723); AppleOne Properties Inc. (1,063); Robinsons Hotels and Resorts (1,016); Cebu
Landmasters Inc. (899); and Ayala Land Hotels and Resorts Corp. (889). (See, “10 developers make huge hotel investments in PHL” in the BusinessMirror, Oct. 9, 2024.) The WTM also found that while many travelers continue to book via travel agencies, an increasing number now book directly with suppliers and providers. “The majority of travelers [over 90 percent] book their stay in advance. While travel agency bookings remain stable, direct bookings via accommodation and transport providers are increasing. This trend reflects a desire for greater flexibility and more direct control over personal travel options.” The world’s largest travel trade
fair, the ITB Berlin, will be held on March 4 to 6 at the Messe Berlin with the theme “The Power of Transition lives here.” Over 5,500 exhibitors from 170 countries and regions are expected to present their products and services to an estimated 100,000 participants. The Philippines has participated in this annual trade fair, which is expected to further open the country to more European visitors. The Tourism Promotions Board leads the Philippine delegation which is composed of representatives from 29 private tourism stakeholders and one government agency. The TPB is the marketing arm of the Department of Tourism (DOT). See “1.15-M,” A2
PESO EXCHANGE RATES n US 57.9240 n JAPAN 0.3875 n UK 73.5693 n HK 7.4483 n CHINA 7.9479 n SINGAPORE 43.0278 n AUSTRALIA 36.0519 n EU 60.7623 n KOREA 0.0397 n SAUDI ARABIA 15.4451 Source: BSP (March 4, 2025)