Asean Leaders in Cebu amid ME energy crisis By Malou Talosig‑Bartolome
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APU‑LAPU CITY—Foreign and eco‑ nomic ministers from 11 member states of the Association of Southeast Asian Nations (ASEAN) have begun arriving here to prepare for a leaders’ summit that comes amid what analysts warn could be the region’s most severe economic challenge since the 1997 Asian Financial Crisis. ASEAN, a middle‑income bloc of more than 680 million people with a combined gross domestic product of US$3.9 trillion, is reeling from the economic and logistical turbulence triggered by the US–Israeli war on Iran. The closure of the Strait of Hormuz has par‑ alyzed global shipping lanes, leaving net ener‑ gy importers such as the Philippines, Thailand
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and Vietnam grappling with surging fuel costs and supply shortages. Oil prices have risen by more than 50 percent since the conflict began. President Ferdinand Marcos Jr., chair of this year’s ASEAN Summit, welcomed delegates to the 48th preparatory meetings with a call for solidarity. “To remain united, coalescing as a force for good in the region,” he said, is essential as ASEAN confronts the crisis. Philippine hosting this year is markedly less lavish compared to 2017, in line with govern‑ ment efforts to cut expenses in anticipation of deeper economic fallout from the war. Meetings of ministers and senior officials are being held at Shangri‑La Mactan and Dusit Thani hotels, while the centerpiece venue is the newly built Mactan Expo Center.
The P1.5‑billion, two‑level convention facility, developed by Megaworld Corpora‑ tion under billionaire Andrew Tan, anchors the company’s 30‑hectare Mactan Newtown township. The International Media Center for local and foreign press is also located within the complex. Officials stressed that substance would out‑ weigh ceremony. “Our work is far from over, as we continue to wrestle against an increasingly complex global environment where prompt and sus‑ tained cooperation is crucial,” Marcos declared in a video message aired during a Palace brief‑ ing at the Media Center. He said the war in the Middle East will be the focus of the one‑day summit on Friday, identifying three priorities: energy security,
food security and protection of nationals. He vowed to prod leaders to “bolster re‑ gional preparedness and ensure stable energy supply and accelerate energy diversification to reduce vulnerability to external shocks, in‑ cluding those stemming from the conflict in the Middle East.” Marcos also underscored the need to strengthen food security by ensuring the “free flow of essential goods” and supporting farm‑ ers and micro, small and medium enterprises. “I will also ensure that ASEAN nationals across the world feel the impact of what we do here in the region. Their safety is equally important, recognizing the contribution of overseas ASEAN nationals in our societies and our economies,” he added. See “Crisis,” A2
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Thursday, May 7, 2026 Vol. 21 No. 205
P25.00 nationwide | 2 sections 28 pages | 7 DAYS A WEEK
‘Full force of food inflation to spur more rate hikes’
By Justine Xyrah Garcia
HE country’s 5 percent unemployment rate in March may already be reflecting the early impact of the ongoing Middle East conflict on the domestic labor market, with economists warning that employment conditions could deteriorate further in the coming months.
Data released by the Philippine Statistics Authority (PSA) on Wednesday showed that around 2.58 million Filipinos were unemployed during the month, slightly lower than the 2.66 million jobless Filipinos recorded in February, when the unemployment rate stood at 5.1 percent. However, the March figure remained significantly higher than the 1.93 million unemployed Filipinos, equivalent to a 3.9 percent
By Andrea E. San Juan
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jobless rate, posted in the same month last year. According to Ateneo economist Ser K. Peña-Reyes, the current unemployment rate may already be capturing the initial effects of the geopolitical tensions in the Middle East—although the full extent of the impact has yet to emerge in the data. “The more pronounced employment effects will probably appear See “M.E. war,” A2
FARM OUTPUT FALLS IN Q1 ON DECLINES IN CROPS, FISHERIES By Ada Pelonia
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@adapelonia
HILIPPINE farm output fell by 0.3 percent in the first quarter due to lackluster performance of the crops and fisheries subsectors. Data from the Philippine Statistics Authority (PSA) showed that despite year-on-year increments in the poultry and livestock subsectors, the sluggish performance of the crops and fisheries subsectors pulled agricultural output into negative territory. The value of agriculture and fisheries production stood at P437.52
billion in the January to March period at constant 2018 prices, down from the P438.65 billion recorded in the same period in 2025. Agriculture Secretary Francisco Tiu Laurel Jr. said weaker crop and fisheries output underscores the farm sector’s vulnerability to weather disruptions and price volatility. “The first-quarter weakness reflects temporary disruptions rather than a structural decline. Sustained support and timely interventions position the sector for recovery while managing emerging headwinds,” Tiu Laurel said. See “Farm,” A13
GRAIN BALANCE National Food Authority rice sacks are carried on workers’ heads and distributed across Metro Manila as part of the government efforts to provide cheaper rice, including in a public market in Las Piñas City where rice is sold at P20 per kilo and limited to five kilos per person for vulnerable sectors; the rollout also covers local programs such as in San Juan City where Mayor Francis Zamora leads the distribution of rice to 8,898 senior citizens under the Assistance to Indigent Individuals or Families—Food Assistance program on May 6, 2026, in line with the nationwide “Sa Bagong Pilipinas, Bawat Bayan Makikinabang” initiative under President Ferdinand Marcos Jr. Beneficiaries receive 10 kilograms of rice in four cycles from May to November, as the Department of Agriculture raises the NFA buying price for dry palay to P30 per kilo to help support farmers and stabilize rice supply. NONIE REYES & NONOY LACZA
@andreasanjuan
VEN after inflation went above market expectations in April, the Philippines has yet to feel the full force of food inflation which now paves the way for more policy rate hikes, particularly 50 basis points per policy meeting in June and August, according to HSBC Global Investment Research’s Senior Asean Economist. In a commentary on Wednesday, Aris D. Dacanay, HSBC Global Investment Research Senior Asean Economist, described the April inflation print as a “huge surprise.” As such, he said this is “big enough to put a 50 basis points [bps] hike on the table.” “The jump in inflation may be enough to push for or necessitate a huge policy response to either bring inflation down or keep inflation expectations anchored,” Dacanay said. On the monetary end, the HSBC Senior Asean Economist said more policy rate hikes are likely on the table, which even raises the risk of an off-cycle hike. “In our adverse scenario, we expect the BSP to raise rates to 6 percent by year-end with a 50bps hike in June and August,” Dacanay said. He also noted that the risk of an off-cycle hike is also rising if the central bank opts to have a “smoother” tightening cycle. “A strong monetary response may be needed to support the peso and keep Foreign Exchange [FX]-induced inflation in check,” Dacanay noted. This would be despite growth being well below the economy’s potential, he pointed out, underscoring that the central bank had See “Inflation,” A2
PESO EXCHANGE RATES n US 61.6780 n JAPAN 0.3908 n UK 83.5737 n HK 7.8716 n CHINA 9.0291 n SINGAPORE 48.3711 n AUSTRALIA 44.3033 n EU 72.1448 n KOREA 0.0418 n SAUDI ARABIA 16.4431 Source: BSP (May 6, 2026)
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REST DAY IN THE TOUR OF LUZON, but the general classification battle remains wide open as defending champion Joo Dae Yeong, yellow jersey holder Nikita Shulchenko, Yousef Ibrahim Alrefai, and Filipino contender Mervin Corpuz stay in focus heading into the next stage; all eyes now turn to Stage 8 from Pagudpud to Paoay spanning 157.4 km, where the GC picture is expected to shift once racing resumes. BM Photo/Roy Domingo
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UP NEXT: Pagudpud - Paoay 157.4km
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