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NEW ORDERS, HIGHER OUTPUT LIFT MANUFACTURING IN APRIL W By Cai U. Ordinario
HILE the Philippine manufacturing sector bounced back in April on the back of new orders and increased output, firms continue to exercise caution as demand is expected to dip after the elections.
As the recent S&P Global Philippines Purchasing Manager’s Index (PMI) noted, the country’s score improved to 53 in April from the 49.4 score posted in March, which was deemed the lowest in 43 months. The threshold in the PMI is an index score of 50, which indicated an overall increase in survey responses compared to the previous month, and below 50, an overall decrease. “The Filipino manufacturing sector commenced the second quarter of the year on a solid note, experiencing renewed growth in output and new orders, alongside an increased level of purchasing activity. Encouragingly, inflationary pressures also remained contained and historically subdued,” Maryam Baluch, economist at S&P Global Market Intelligence, said. However, Baluch noted that companies were cautious as there are expectations that post-election demand will slow. This was observed in decisions by companies to keep their existing manpower for the second consecutive month. “Confidence within the sector
“Confidence within the sector has declined to its second lowest in the series history. Some respondents indicated that the rise in activity during April was partially influenced by the upcoming elections, suggesting that post-election, customer demand may be less buoyant.”—Maryam Baluch, S&P Global
has declined to its second lowest in the series history. Some respondents indicated that the rise in activity during April was partially influenced by the upcoming elections, suggesting that post-election, customer demand may be less buoyant,” Baluch said. In April, S&P Global Market Intelligence said the PMI showed international demand for Philippine goods were “broadly stagnant for a second consecutive month in April.” The data also showed that the seasonally adjusted New Export Orders Index was unchanged at below the 50 mark, the same as March 2025. S&P Global Market Intelligence said manufacturers raised their buying activity and even showed bulk buying. This allowed firms to increase their input inventories in April. There was also an increase in the holdings of finished goods in April. However, the report stated that this marked a slower increase in post-production inventories for the fourth consecutive month. Meanwhile, in terms of employment, the report noted that there was only a “fractional drop in outstanding work levels.”
A WAREHOUSE complex in Meycauayan, Bulacan—one of the country’s key manufacturing hubs north of Metro Manila. The latest S&P Global PMI report showed the Philippine manufacturing sector bounced back in April 2025, driven by new orders and increased output. However, firms remain cautious, anticipating slower demand after the elections. MICHAEL EDWARDS | DREAMSTIME.COM
‘Flip the box’ to boost innovation–DepDev
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TRUMP CLOSES CHINA SHIPPING GAP, RAISING PRICES FOR U.S. CONSUMERS
NSTEAD of just thinking outside the box, the Department of Economy, Planning and Development (DepDev) said “flipping the box” is needed to encourage more innovation in the economy.
“Flip the box—to shift our perspectives, disrupt outdated processes, and discover bold new solutions.”— Arsenio Balisacan, DepDev Secretary WHAT ‘FLIP THE BOX’ MEANS FOR THE PHILIPPINES
• Mindset Shift: Break from outdated practices • System Reform: Flexible procurement & regulation • R&D Investment: More aligned funding processes • Triple Helix: Gov’t–Academe–Industry synergy • Digital Mapping: Innovation hubs via Filipinnovation • Innovation Grants: P260M+ for 53 projects since 2022
to implementation—by creating procurement and regulatory frameworks that are flexible and fit for the purpose,” he added. Nonetheless, Balisacan said, some headway has been achieved. This includes the investment of the
National Innovation Council (NIC) in addressing structural and regulatory bottlenecks in the innovation ecosystem—particularly in technology areas like CleanTech, AgriTech, and HealthTech.
SKYPIXEL | DREAMSTIME.COM
Balisacan said efforts to “flip the box” means investing in people and creating systems that empower innovators and support their needs. He said the country must address systemic barriers. One example, he said, is in the procurement process for research and development. He said the process remained rigid and misaligned to the nature of innovation. He said there is also a need to “strengthen triple helix collaboration among government, academe, and industry. “Speaking as someone who has spent many years in the academe, I know firsthand that innovation is often not hindered by a lack of ideas, but by outdated systems,” Balisacan said. “We must redesign these systems to support the full innovation cycle—from ideation
SKYPIXEL | DREAMSTIME.COM
In a recent speech, DepDev Secretary Arsenio M. Balisacan said innovation is a driver of sustainable and inclusive development that the country needs to tap into to attain its goals. Balisacan said this means not only ensuring the steady flow of ideas but more importantly, having the ecosystem to support these ideas. “It urges us to flip the box—to shift our perspectives, disrupt our outdated processes, and discover bold new solutions. ‘Flip’ signals a transformation in mindset, a break from convention, and a leap toward innovation-driven action,” Balisacan said. “It calls on us to flip the page and empower a new generation of leaders ready to reshape industries, uplift communities, and steer the Philippines toward a more prosperous future,” he added.
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MALL-VALUE packages shipped to the US from China will no longer be exempted from tariffs starting Friday, when President Donald Trump’s move against an exception he called a “big scam” takes effect. The decision to end the so-called “de minimis” exception is expected to have wide-ranging effects on American consumers who have increasingly purchased cheap clothing, household goods and other products from discount Chinese marketplaces such as Temu and Shein Group Ltd. It could also deal a heavy blow to independent online sellers who rely on Chinese imports. Trump last month signed an executive order closing a loophole Continued on A2
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PESO EXCHANGE RATES n US 55.9330 n JAPAN 0.3851 n UK 74.2846 n HK 7.2108 n CHINA 7.6921 n SINGAPORE 42.6677 n AUSTRALIA 35.6964 n EU 63.1484 n KOREA 0.0390 n SAUDI ARABIA 14.9143 Source: BSP (May 2, 2025)