Tariff uncertainty ‘wake-up call’ to lawmakers By Andrea E. San Juan
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ASEAN OPENS SUMMIT WITH PERSIAN GULF NATIONS AND CHINA AS US THREATENS TARIFFS
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HE tariff uncertainty should serve as a “wake- up call” for the Philippines’ lawmakers to prioritize beefing up the country’s export capability despite its status as the “most unsupported export” country in Asia, according to Philexport President Sergio R. Ortiz-Luis Jr. “I would like to see what is happening in tariff as a wake-up call to our politicians, to our duly elected—that they have really, not abandoned, forgotten exports,” the Philexport chief said at a fo-
rum on Monday. “With the most unsupported export industry in the whole of Asia, we don’t even have funds for export development and research and development. Our MSME sector, many of whom are exporters, are the most underbanked in Asia,” added Ortiz-Luis. Comparing the funds allocated for small merchants with those of the Philippines’s neighbors, OrtizLuis said only $11.6 billion was allocated for Filipino MSMEs in lending. Whereas, he said Thailand has a $190-billion funding. “The nearest to us is Indonesia with $17 bil-
lion.” “And for export promotion, you know, it’s an embarrassment. There’s so many international shows that we should be joining. We are not because there’s no fund.” The Philexport chief stressed anew that the umbrella organization of Philippine exporters has been asking for some funding for exports. “What do we expect from DTI for instance to develop trade but there’s no budget. When we go there to the legislature to ask for budgets, they will ask us, where will you get it? And they will not
even entertain the issue of getting it partly from the giveaway money,” added Ortiz-Luis. The head of Philexport said this in the context of reallocating funds especially from conditional cash transfer (CCT) program. Earlier this year, Ortiz-Luis had set a $110-billion “realistic” target for export of goods and services. “This year, it’s only about $110 billion...We’re not seeing any support, so I think we’re just leaving it to chance,” the Philexport chief told this paper in January. “So we shouldn’t be surprised that our neighbors are now leaving us behind,” he also noted.
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Wednesday, May 28, 2025 Vol. 20 No. 227
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CODED COMMUTES AND CAMERA CRACKDOWNS Metro Manila motorists continue to navigate major
thoroughfares under tighter traffic measures. On Edsa, one of the region’s busiest highways, vehicles stream through the night ahead of the 24-hour odd-even coding scheme set to begin on June 16, 2025—part of the Metropolitan Manila Development Authority’s (MMDA) strategy to ease congestion during multi-year rehabilitation works projected to finish by 2027. Meanwhile, on Commonwealth Avenue in Quezon City, the MMDA resumed its No-Contact Apprehension Policy (NCAP) in designated areas. A total of 1,112 violations were recorded on the first day of reimplementation, Monday, May 26, through digital surveillance systems targeting errant drivers. NONOY LACZA
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By Reine Juvierre S. Alberto @reine_alberto
HE national government’s fiscal deficit expanded to P411.5 billion in the first four months of the year despite posting a bigger surplus in April, as the surge in government spending outpaced revenue growth. Latest data from the Bureau of the Treasury (BTr) showed the government registered a budget surplus of P67.3 billion in April, higher by 57.51 percent from last year’s P42.7 billion. Despite this, the budget deficit soared by 78.98 percent to P411.5 billion as of the end of April from P229.9 billion in the same period last year. “If the deficit continues to grow faster than revenues, it could lead to higher borrowing requirements, increasing interest payments and possibly crowding out spending on
essential programs,” John Paolo Rivera, senior research fellow at the Philippine Institute for Development Studies, said. A budget deficit occurs when revenues exceed expenditures. A smaller budget deficit could also mean less need for the government to borrow money to finance its spending requirements.
Revenue collection
STATE revenues in the four-month period grew 3.35 percent to P1.520 trillion from P1.470 trillion a year See “Govt,” A2
$221-B FUNDING GAP STYMIES FILIPINO SME CAPACITY–VISA By Cai U. Ordinario
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@caiordinario
ILIPINO small and medium enterprises (SMEs) are facing a $221-billion funding gap that prevents them from contributing more to the economy and creating more jobs, according to Visa. In a briefing on Tuesday, Visa Head of Commercial Money Movement, Regional Southeast Asia Gareth Parrington said the funding gap globally for SMEs is estimated at $5.2 trillion and of this amount, $2.4 trillion is accounted for by the Asia-Pacific region. Parrington said the Philippines accounts for 10 percent of the regional funding gap and
this is considered one of the highest in the region. This, he said, is disproportionate to the economy considering that SMEs account for 99 percent of all businesses in the country. “It’s around 10 percent [of the regional gap]. So it’s actually one of the largest funding gaps that we see by proportion across Asia-Pacific. I think it’s the second largest according to the data that we see. So it is disproportionate in this economy,” Parrington said. In a statement, Visa said the only SME funding available in the Philippines is $15 billion. Parrington noted that the challenges faced by Filipino SMEs include lack of capital. The See “$221-B,” A5
DOLE to employers: WFH may help ease traffic woes By Justine Xyrah Garcia
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MID mounting concerns over heavier traffic once the P8.7-billion Edsa rehabilitation project starts next month, the Department of Labor and Employment (DOLE) clarified on Tuesday that there will be no mandatory work-from-home (WFH) policy for private sector workers. In a radio interview, Labor Secretary Bienvenido E. Laguesma said employers will not be required to implement alternative work arrangements, but he urged them to make adjustments that could ease the burden on their employees. “We will not compel them, but we strongly encourage them,” Laguesma said. “There’s a need to improve or
strengthen the system [on WFH] so that the outcome is mutually beneficial, both for our workers and the business sector,” he added. Laguesma explained that under Republic Act No. 11165 or the Telecommuting Act, remote work remains a voluntary arrangement subject to the agreement of both employer and employee. Under the law, private companies may offer telecommuting options, provided these comply with minimum labor standards, including compensable hours, overtime, rest days, and leave entitlements. Employers must also issue written terms for such arrangements. Although RA 11165 does not allow the government to mandate a WFH setup, Laguesma appealed to companies to consider flexible See “DOLE,” A5
PESO EXCHANGE RATES n US 55.2770 n JAPAN 0.3873 n UK 74.9833 n HK 7.0545 n CHINA 7.6912 n SINGAPORE 43.0506 n AUSTRALIA 35.8637 n EU 62.9494 n KOREA 0.0404 n SAUDI ARABIA 14.7382 Source: BSP (May 27, 2025)