‘Tame Feb inflation should spur more rate cuts’ By Reine Juvierre S. Alberto
T REVOLUTIONIZING THE GLOBAL MORTGAGE MARKET Global financial leaders, policymakers and industry experts gather at the Mortgage Market Global Summit 2025, hosted by the National Home Mortgage Finance Corporation in picturesque El Nido, Palawan. The summit is poised to drive synergies for innovation, knowledge-sharing and collaboration within the housing finance and capital market sectors. It is geared to foster growth, resilience, and accessibility in housing finance worldwide such as the Philippine government’s flagship Pambansang Pabahay para sa Pilipino Program (4PH). (From left) Richard Kemmish, Covered Bond Consultant; Kameel Abdul Halim, President of Cagamas National Mortgage Corporation of Malaysia; Oscar Mgaya, Chairman of International Secondary Mortgage Market Asso. (ISMMA); Renato L. Tobias, President of National Home Mortgage Finance Corporation; Johnstone Oltetia, Chief Executive Officer of Kenya Mortgage Refinance Company; Luca Bertalot, Secretary General of European Mortgage Federation - European Covered Bonds Council; Yuji Date, Director General of International Affairs and Research Development, Japan Housing Finance Agency; and Christian König, Managing Director of European Federation of Building Societies. CONTRIBUTED PHOTO
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HE easing of inflation in February gives the Bangko Sentral ng Pilipinas (BSP) more elbow room to resume its rate-cutting cycle in its next meeting in April, according to economists. Inflation cooled to 2.1 percent in February 2025, from 2.9 percent in January 2025 and 3.4 percent in February 2024. It is also the lowest recorded inflation rate since September 2024’s 1.9 percent. (See: https://businessmirror.com.ph/2025/03/05/ inflation-drops-to-2-1-in-feblowest-in-5-months-psa/). With the inflation print falling
below the BSP’s forecast range of 2.2 to 3 percent, Citi economist Nalin Chutchotitham said the central bank could resume cutting interest rates by a total of 75 basis points this year—25 bps each in April, August and December, respectively. This would bring down key policy rates to 5 percent. “In terms of monetary policy conditions, things were still somewhat tight last year, despite the three policy rate cuts by the BSP last year,” Chutchotitham said in a press chat on Thursday. She said another two 25-bps cut is expected to be delivered by the BSP in 2026, which will reduce key policy rates to 4.50 percent. The central bank, despite being cautious amid various global
uncertainties, could resume the reduction of interest rates in April as inflation is expected to settle at around the middle of its target due to lower tariffs on food imports, according to Chutchotitham. She said bringing down interest rates down to 5 percent will allow the economy to grow to its potential, which is estimated at around 6 percent. However, “there are still a lot of things to consider. Surprises can happen on both upside and downside,” Chutchotitham added. With a “surprising” inflation in February 2025, she said Citi adjusted its inflation forecast for the Philippines to 2.6 percent from 3.2 percent in 2025. See “Tame,” A2
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Friday, March 7, 2025 Vol. 20 No. 146
P25.00 nationwide | 2 sections 24 pages | 7 DAYS A WEEK
‘Exporters to US may shift from air to ocean freight’
By Bless Aubrey Ogerio
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@blessogerio
HE labor market in the Philippines saw an uptick in unemployment and underemployment in January this year following the end of seasonal jobs from the holiday period, according to the Philippine Statistics Authority (PSA). The Labor Force Survey (LFS) showed that the unemployment rate rose to 4.3 percent, or 2.16 million Filipinos, from 3.1 percent (1.63 million) in December 2024. However, it was slightly lower than the 4.5 percent (2.16 million) recorded in January 2024. Underemployment, representing those employed but seeking additional work, also climbed to 13.3 percent (6.47 million) in January from 10.9 percent (5.48 million) in December 2024. It was also slightly down from the 13.7 percent (6.30 million) recorded in the same month last year. Assistant national statistician Divina Gracia del Prado on Thursday attributed these shifts to seasonal employment trends, particularly in industries that ramp up hiring toward the end of the year. “Even quarter-on-quarter, we observe that employment rates peak around October as manufacturers prepare for increased holiday demand,” del Prado said, partly in Filipino, during the briefing.
Jobs dip in 3 sector concerning
REACTING to the PSA presentation, Labor and Employment Secretary Bienvenido Laguesma said the January 2025 LFS “presents a promising outlook for our labor market, reflecting progress in certain areas while also highlighting those in need of focused attention.” However, Laguesma conceded that the jobs decline in certain sectors—manufacturing, professional See “Holiday,” A2
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EMPOWERING BEAUTY: WOMEN AT WORK Amid the hustle and bustle of Lacson Underpass in Quiapo, Manila, a beautician skillfully enhances a customer’s eyelashes in her makeshift
salon. As Women’s Month highlights the strength and determination of women in various fields, her craft reflects the resilience and entrepreneurial spirit of many Filipinas making a living through their artistry. BERNARD TESTA
SUMITOMO, 3 MORE JAPANESE FIRMS EXPANDING PHL OPS–DTI By Andrea E. San Juan @andreasanjuan
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ORE Japanese firms including Sumitomo Corporation, Fujifilm Holdings Corporation, Taiheiyo Cement and Chodai Co., Ltd. have expressed an intent to expand their operations in the Philippines, according to the Department of Trade and Industry (DTI). In a statement on Thursday, DTI said Trade and Industry Secretary Cristina A. Roque met with Sumitomo Corporation’s executives to discuss the company’s “expanding role” in the Philippines’ sustainable industrial transformation and community development. The DTI said Sumitomo Corporation has announced its intention to “significantly” expand its renewable energy initiatives in the Philippines starting in 2025. DTI highlighted that Sumitomo Corporation is a “significant” player in the Philippines’ infrastructure landscape, particularly through its involvement in the Metro
Manila Subway Project and the MRT Line 3 Maintenance. Meanwhile, DTI said Fujifilm Holdings Corporation expressed plans to “diversify” its operations at its FUJIFILM Optics Philippines Inc. in Laguna to transform the facility into a regional hub for “sustainability initiatives.” “This strategic diversification will introduce new business lines focused on sustainable manufacturing practices, positioning the Philippines as a central player in Fujifilm’s regional sustainability strategy,” DTI said. Fujifilm’s initiative will focus on enhancing operational efficiency to reduce its environmental footprint. This facility, DTI noted, will serve as a “pilot project” for Fujifilm’s broader vision of diversifying investments in sustainable technologies and practices. Currently, Fujifilm’s factory in Laguna produces high-performance optical lenses, critical components for a wide range of devices, including digital cameras, projectors, and surveillance cameras.
Meanwhile, DTI said Chodai Co., Ltd. is “actively” pursuing sustainable business ventures in the Philippines, focusing on clean energy and waste management projects. Its initiatives include the deployment of zero-initial-cost solar power systems for small-scale resorts and hotels in Palawan. “This initiative aims to eliminate reliance on diesel power generators, promoting cleaner energy alternatives,” said DTI. The company also plans to establish a biomass power generation plant in Central Luzon. Moreover, Chodai is introducing advanced Japanese waste treatment equipment to hospitals in Tarlac. “This technology utilizes gasification combustion for solid waste and bio-water circulation for liquid waste, ensuring safe and efficient medical waste disposal. In Davao and Mindoro, Chodai is implementing resource recovery and reforestation projects, converting environmental liabilities into sustainable assets,” added DTI. Secretary Roque said Chodai’s “comprehen-
sive” approach to sustainable development will have a “transformative” impact on communities across the Philippines. “Their projects in clean energy, waste management, and sustainable industry will drive economic growth while protecting our environment,” Roque noted. Meanwhile, DTI said Taiheiyo Cement is constructing a distribution terminal in Calaca, Batangas, targeting the Luzon market, which accounts for 64 percent of the country’s cement demand. “Once operational, this new facility will streamline logistics, optimize supply chain efficiency and ensure timely delivery of cement to this critical region,” said DTI. “We are forging strong, high-impact partnerships that drive industrial transformation, propel us to the forefront of the global economy, and secure a future where every Filipino benefits from progress, sustainability, and shared prosperity. Through sustainability-driven investments, we are See “Sumitomo,” A2
HILIPPINE exporters to the United States are expected to shift from air freight to ocean freight due to US tariffs, according to a report by global logistics provider Dimerco. “Expect exports from the Philippines to the US to shift from air freight to ocean freight due to US tariffs,” Dimerco’s Asia Pacific Freight Report for March 2025 noted. As to Dimerco’s projection for the Philippines, March freight capacity remains stable, but longhaul shipments should be booked two weeks in advance. It also highlighted that with the summer starting in the Philippines, fewer disruptions are expected from rain and typhoons. As such, Dimerco noted, “Container movement and yard utilization should improve during this non-peak period.” Despite this, the report said it may be more costly to export Philippine goods to Europe and the United States, as ocean freight rates are rising. It is also worth noting that goods being shipped by North America bound for Manila may suffer from space constraints. “Shippers can expect potential space constraints from the West Coast to Asia, especially in Manila,” Dimerco said of the ocean freight market situation of North America. “It is recommended to book at least a month in advance to mitigate the risk of delays,” the report noted. With ocean freight rates seen rising for Philippine goods being shipped to Europe, the Dimerco report explained that capacity surged in late February on the North Europe to US East Coast trade lane ahead of upcoming US steel and aluminum tariffs, while Mediterranean utilization remained stable. The report of the logistics firm revealed the global developments for shippers to keep an eye on. For one, Dimerco said, “Starting March 4, President Trump’s tariffs on Mexico, Canada, China, and the EU will reshape global supply See “Exporters,” A2
PESO EXCHANGE RATES n US 57.4960 n JAPAN 0.3862 n UK 74.1468 n HK 7.3991 n CHINA 7.9475 n SINGAPORE 43.2008 n AUSTRALIA 36.4180 n EU 62.0439 n KOREA 0.0398 n SAUDI ARABIA 15.3339 Source: BSP (March 6, 2025)