‘No sanctions for OFW non-remitters’ By Samuel P. Medenilla
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POE INDUCTS UPMG 2025-2027 OFFICERS Senator Grace Poe (left) administers the oath as the inducting officer and keynote speaker during the United Print & Multimedia Group Philippines (UPMG) induction of 2025-2027 officers and the Headliner Awards 2024 at Manila Hotel. From left: President Viviene Motomal (People’s Journal), Vice President Angel Guerrero (Adobo Magazine), Former UPMG President Barbie Atienza, Corporate Secretary Jeanette Dominguez (BusinessWorld), Treasurer Sherly Baula (Chinese Commercial News), Auditor Roda Alonzo-Zabat (Manila Times), P.R.O. Aldwin Tolosa (BusinessMirror), and Directors Jong Arcano (Philippine Daily Inquirer), Edna Abong (Pilipino Star Ngayon/Freeman), and CRB Head Eve Bacani (Philippine Daily Inquirer). ROY DOMINGO
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HE government will not impose sanctions on overseas Filipino workers (OFW) who will refuse to send remittances to compel authorities to bring home former President Rodrigo R. Duterte, Malacañang said on Wednesday. Palace Press Officer Claire Castro made the assurance when asked if the government will remove the benefits, which includes tax exemptions, of OFWs who will join the zero remittance campaign floated by some Duterte loyalists. “It is the OFW’s choice whether they send their remittance or not. We will not hinder them in whatever they wish,” Castro said in a press briefing.
“As I said earlier, we have not taken any legal action because we know OFWs have their own analysis of the events,” she added. The Presidential Communication Office (PCO) undersecretary said she is confident most OFWs will not join such a campaign since it will be detrimental to their families. She cited the case of OFWs in Croatia who refused to join the zero remittance campaign from March 28 to April 4. “As I said, most of the comments say that they will not participate in such calls because they don’t want their own families to suffer and [to] suffer from political issues,” Castro said.
Legal liability
HOWEVER, she said people in the
campaign may face charges for inciting to sedition since they are seeking to destroy the country’s economy. “As we speak now, we don’t see whom we will charge [for starting the said campaign]—we are not in that situation yet,” Castro said. Last Monday, Presidential chief legal counsel Juan Ponce Enrile, in his social media account, warned OFWs against joining the zero remittance campaign. He noted that Congress may opt to respond to the zero remittance campaign, which can severely affect the country’s economy, by suspending their tax privileges such as their travel tax, and documentary stamp tax. “Congress granted these privileges See “Sanctions,” A2
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‘TOO-STEEP RATE CUTS MAY SPUR ZOMBIE FIRMS’ www.businessmirror.com.ph
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Thursday, March 27, 2025 Vol. 20 No. 166
P25.00 nationwide | 4 sections 32 pages | 7 DAYS A WEEK
By Reine Juvierre S. Alberto
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HILE the Bangko Sentral ng Pilipinas (BSP) is widely expected to reduce key policy rates on April 10, economists warned that keeping rates too low could lead to the rise of “zombie firms” and market distortions. In an economic briefing on Wednesday, Bank of the Philippine Islands (BPI) Lead Economist Jun Neri said lowering the key policy rates to 4 or 3 percent could subject the economy to the dangers of misallocation of resources, the risk of zombie firms re-emerging and inequality even worsening further. “We’re not yet at that level where it looks dangerous that we are making rates too low or even negative. But our sense is, we’re getting close to the neutral rate for the BSP,” Neri said. The current 5.75-percent key
policy rate, which the BSP maintained in its rate-setting meeting on February 13 due to global uncertainties, is “still slightly above the average policy rate of the BSP,” Neri said. BSP Governor Eli M. Remolona Jr. has said the BSP is still on an easing cycle and there is a “good chance” it will cut rates by 25 basis points in its meeting on April 10. (See: https://businessmirror.com.ph/2025/03/26/ bsp-says-intervening-less-inpeso-sees-cut-in-rates/). Neri echoed this stance, citing See “Too-steep,” A2
AS GLOBAL RICE PRICES DIP, DA CUTS M.S.R.P. TO P45 A KILO By Ada Pelonia
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HE Department of Agriculture (DA) will again cut the maximum suggested retail price for imported rice to P45 per kilo starting March 31, owing to a steady decline in global quotations of the staple grain. “At this level, the retail price of imported rice has now decreased by P19 per kilo compared to its price before we implemented the MSRP on January 20,” Agriculture Secretary Francisco Tiu Laurel Jr. said in a statement. The agency said that before the implementation of the MSRP, imported rice was sold at P64 per kilo despite the softening of international rice prices, tariff reductions, and a stronger peso. According to the DA, the MSRP implementation followed consultations with in-
dustry stakeholders to ensure that price reductions would not destabilize the rice industry or compromise food security. The agency noted that the initiative reflects President Marcos Jr.’s decision to slash rice tariffs to 15 percent from 35 percent. It added that India’s decision to lift its ban on the export of non-basmati rice also contributed to the increase in global rice supply. As a result, the DA said international rice prices dropped to their lowest levels in over two years, with some varieties settling below $380 per metric ton (MT). Before the MSRP reduction to P49 per kilo on March 1, the DA said the price of rice with 5 percent broken grains in Vietnam had already dropped to $490 per MT, around $200 cheaper than in December. Vietnam is the Philippines’s top supplier of rice. See “Global,” A2
EXTRA MILE The MRT-3 has extended its operating hours by one hour on weekdays to accommodate more passengers amid growing commuter demand. Southbound stations will now close after 10 p.m., while northbound operations will run until 11:30 p.m. Previously, the Department of Transportation (DOTr) had raised concerns about permanently extending MRT and LRT operating hours, warning that it could disrupt essential maintenance work needed for safety and reliability. However, this extension reflects a balanced approach, addressing commuter needs while ensuring system upkeep. JOEL C. PAREDES
Moody’s sees 5.9% GDP growth for PHL in ’25
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HE Philippine economy’s growth trajectory this year is projected to be shy of the government’s target, already seen as the “strongest expansion” in three years, according to Moody’s Ratings. In an online briefing on Wednesday, Moody’s Analytics Economist Sarah Tan said the Philippines will grow by 5.9 percent in 2025 from 5.6 percent in 2024. This will further slow to 5.8 percent in 2026. Tan said the Philippines is one of the fastest-growing economies in Southeast Asia due to its domestic economy driven by private consumption. “While the expected growth is shy of the government’s target, it will mark the strongest expansion in three years,” Tan said. The economy is targeted to grow by 6 to 8 percent this year, set by
the Cabinet-level Development Budget and Coordination Committee (DBCC). Tan said this goal would be supported by stable inflation, easing monetary policy, a tight labor market and healthy inflow of remittances boosting consumption. Inflation is seen to slow down and settle within the government’s target of 2 to 4 percent, averaging at 2.8 percent in 2025 and 3 percent in 2026. “The Bangko Sentral ng Pilipinas [BSP] faces a tough balancing act to maintain price stability and economic growth. Progress on the inflation front supports the case for more rate cuts,” Tan said. Key policy rates are forecasted to be reduced by 50 basis points in 2025, with the BSP bringing down the rates to 5.75 percent by the end of the year.
However, Tan warned that United States tariffs could slow global demand and the pace of interest rate normalization, prompting the BSP to be more cautious about monetary easing to avoid significant weakening of the peso. Reciprocal tariffs or any tariffs from the US will “definitely hurt” Philippine exporters because the US is the largest export destination for the Philippines, Tan added. “It is unlikely to leave a huge dent on the macroeconomy, but it will definitely hurt these exporters and manufacturers,” Tan said. Last year, the Philippines fell short of reaching its growth target of 6 to 6.5 percent, only expanding by 5.6 percent due to strong serial typhoons that disrupted the country. In a separate briefing on Wednesday, Bank of the Philippine Islands Lead Economist Jun Neri said chal-
lenges remain in certain key sectors, which could dent growth. The China supply chain as well as the ban of Philippine offshore gaming operations, which resulted in the excess supply of office spaces and condominiums, is seen to slow construction growth. “Even five years past the initial disruptions, corporate construction activity persists at approximately 25 percent below prepandemic levels, creating a notable gap in overall investment and economic momentum,” Neri said. “This situation underscores the urgent need for the private sector to proactively identify and invest in emerging sectors and regions that are capable of not only driving new growth but also effectively compensating for this persistent weakness,” he added. Reine Juvierre S. Alberto
PESO EXCHANGE RATES n US 57.3990 n JAPAN 0.3830 n UK 74.3087 n HK 7.3828 n CHINA 7.9069 n SINGAPORE 42.9923 n AUSTRALIA 36.1786 n EU 61.9507 n KOREA 0.0393 n SAUDI ARABIA 15.3003 Source: BSP (March 26, 2025)