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Weak peso

A weak peso is a doubled-edged sword. It encourages exporters to produce more because of higher potential earnings from a ‘favorable’ exchange rate.

It is also a boon to business process outsourcing companies with overseas contracts denominated in foreign currencies.

But a weak local currency has its ugly side. It translates into higher cost of imports, especially of oil, fuels inflation and increases government pressure to raise transportation fares and wages.

The Philippine information technology-business process management (IT-BPM) industry, for one, is gaining short-term competitiveness from the peso’s depreciation. At the same time, however, it fears rising inflation and blanket wage hikes could erode the sector’s long-term advantage.

Proposed wage increases, while favorable or neutral to salaried employees, would create uncertainty and could affect investor projections and decisions.

Renewed Middle East tensions last week drove the immediate drop in the value of the peso. Brent crude rose 2.77 percent to $107.51 a barrel while West Texas Intermediate climbed 2.27 percent to $102.32 after Houthi forces attacked targets in Saudi Arabia and Iranian forces assaulted commercial vessels in the Persian Gulf, per a foreign wire report.

The Philippines imports nearly all of its oil requirements. Higher crude prices directly widen the country’s trade deficit and increase the demand for dollars among local importers.

The US dollar itself is strengthening, lowering the value of the peso and other foreign currencies. It is gathering strength as investors weighed the prospect of interest rate decisions from both the US Fed and the Bank of Japan.

One foreign exchange trader noted that the peso reached new lows after August’s US inflation data solidified views of a Fed rate hike. Against these hawkish expectations, the peso currency will likely remain weak.

The peso depreciation, to reiterate, has a significant impact on the economy because it will fuel inflation and slow down economic growth. It may boost our exporters but the weak currency creates a challenging environment characterized by higher costs and reduced production.

The Philippines can check the peso depreciation through more exports but that is easier said than done. We need to boost the economy and expand our export base-that means raising investments to generate more jobs and increase the purchasing power of our workers.

The administration of President Ferdinand Marcos Jr. has committed to speed up investments, strengthen skills training and help businesses expand, and hire more Filipinos after the July labor data showed mixed results.

The Philippine Statistics Authority’s July 2026 Labor Force Survey showed 49.2 million Filipinos were employed, an increase of about 3.2 million from last year. Private establishments added 582,000 wage and salary workers, and middle- and high-skilled occupations rose by a combined 2.6 million workers.

Unemployment, however, rose to 6 percent, with 3.14 million Filipinos out of work, an increase of 551,000 from a year earlier. More Filipinos are finding work but more are also entering the labor force as new graduates join the labor force.

Against this backdrop, the Marcos administration approved 46 special economic zones that are expected to draw P141.2 billion in investments and generate close to 189,000 jobs. Of these zones, 43 are outside Metro Manila, 29 in Luzon, 12 in the Visayas and five in Mindanao.

The government is also accelerating the Luzon Economic Corridor, which will link Subic, Clark, Manila and Batangas into a logistics, manufacturing and innovation hub. The mammoth railway project is projected to generate up to one million jobs.

A planned 1,600-hectare technology hub in New Clark City within the corridor is also expected to support semiconductor, advanced manufacturing and artificial intelligence industries, and create 130,000 high-quality jobs.

The training of more Filipinos for the new job positions should match the new investments. An expanded economic base and increased employment, hopefully, will add value to our currency and cancel out the effects of a stronger US dollar.

EDITORIAL – Franchise for Big Tech

The world has been trying for many years now to find ways of making online platforms more accountable for content that is harmful to minors.

In the past decades, among the biggest problems related to cyberspace was its facilitation of the online sexual abuse and exploitation of children.

Apart from OSAEC, law enforcement and anti-cybercrime agencies have warned of the emergence of a new and more dangerous threat: the spread of nihilistic violent extremist groups. NVE groups prey on impressionable youths with a penchant for violent online games, with adults ‘grooming’ the minors to commit acts of mass violence and self-harm. With no specific political or religious objectives, these NVE communities are tough to track down.

The Philippines is not the only country that has seen the lethal, tragic consequences of such NVE-groomed minors unleashing their violent tendencies in their schools.

Several countries have moved to restrict minors’ access to social media. This can be challenging to enforce in the Philippines, where a national identification system has yet to be fully operationalized.

Another proposal is to treat social media platforms like broadcasting entities and require them to secure a congressional franchise. The proposal was made amid the inability of the government to compel the developer of GoreBox, the sandbox game that promotes ‘unrestrained destruction,’ to face probers in the Philippines.

The government has also had limited ability to make tech giants like Meta answer questions about their self-regulation rules and the impact on minors of violent content on their platforms.

The idea of having jurisdiction over the social media giants through the requirement for a congressional franchise will likely be tempting for lawmakers. But minors aren’t the only ones who use social media, and the proposal could spell disaster for freedom of information in this country.

Considering the record of politicians in dealing with media franchises, the trend should be toward reducing their say on the matter to a minimum rather than expanding their jurisdiction. This is to prevent a repeat of the shutdown of broadcasting giant ABS-CBN because congressmen, several of whom admitted having personal axes to grind, rejected the renewal of the network’s franchise.

Jurisdiction over primary broadcast franchises should be fully turned over to the National Telecommunications Commission, to de-politicize the regulatory process. This is the situation in the US, where broadcast franchises, licenses and regulation are under the Federal Communications Commission.

A congressional franchise for Meta? The last thing we need is for all Filipinos to lose access to major online platforms because lawmakers felt slighted on social media.

KRA unearths Sh56m smartphone tax evasion scheme

An importer and a clearing agent face prosecution after the Kenya Revenue Authority (KRA) uncovered Sh56 million in under-declared tax on a consignment of mobile phones imported through the Eldoret International Airport.

KRA investigators found 55,607 basic smartphones in a shipment whose owners had only declared 3,000 gadget for taxation in customs documents. The investigators also discovered 309 undeclared high-end phones, highlighting the difficulty of relying on broad customs benchmarks to assess consolidated cargo, particularly where large quantities of high-value electronics are packed into mixed shipments.

‘All the taxes due to be demanded,’ KRA officers from Investigations and Enforcement, Business Intelligence and Customs and Border Control units have recommended in a confidential report seen by the Business Daily after determining that the consignment involved both under-declaration and non-declaration of dutiable goods.

‘Prosecute or compound upon request, both the importer and the clearing agent,’ the KRA team adds in the report, citing Section 219 of the East African Community Customs Management Act.

Under-declaration and non-declaration offences under Section 203(a), (b) and (e) of EACCMA, 2004, attract a maximum penalty of USD 20,000 (about Sh2.59 million) or 50 percent of the dutiable value of the goods involved, whichever is higher, or imprisonment of up to three years.

The law also empowers KRA to compound the offences, which means settling the case administratively out of court.

The phones were part of a much wider consolidated cargo shipment containing electronics and other consumer goods.

The manifest included 800 refurbished laptops, 1,300 MacBooks, 63 tablets, 950 mobile phone screens, 1,510 Meeto phone screens, 10 Starlink units, printers, televisions, routers, network equipment and other goods.

There were also six drones, 380 pairs of ear pods, gaming equipment and assorted cosmetics, clothing and shoes.

The KRA officers have also recommended detention of the drones found in the wider shipment pending production of proof of authority from the Kenya Civil Aviation Authority.

‘KRA is actively engaged in unearthing tax evasion schemes in order to boost tax revenue compliance as well as adherence to tax laws and procedures, hence ensuring fair trade is maintained within the market,’ Commissioner for Investigations and Enforcement, Mohamed M’maka, wrote in a press statement on Wednesday.

The case comes weeks after President William Ruto directed the tax authority to reduce the minimum customs benchmark for containerised consolidated cargo to Sh2 million, reversing an August increase that had pushed the benchmark for a 40-foot container to Sh3.2 million.

The higher benchmark had triggered protests from small traders, with the President’s September 2 directive restoring the charge to below the Sh2.5 million level that had applied for about six years.

An insider at KRA told Business Daily that the reversal would put pressure on the authority’s revenue projections.

‘The directive caught us off-guard, and there will be a lot of reviews to correct the mess from the development. The new rates had already been factored into collection projections, and placing the rates back to levels of more than six years ago will certainly cause setbacks,’ the source said.

‘Customs is a key mover for our overall numbers, and any variations on such rates reflect on the bigger picture,’ the source added.

The Eldoret case, however, involves a separate issue from the general customs benchmark, namely the accuracy of declarations made for individual shipments.

The investigation began on September 11 and 12 after KRA received intelligence that a regional airline cargo flight had arrived at Eldoret International Airport carrying suspected undeclared mobile phones and other high-end electronic goods. That triggered a physical verification of the consolidated cargo.

The probe found that the consignment weighed 49,000 kilogrammes and had been cleared through five customs entries, on which importers had paid Sh24.12 million in taxes.

At the prevailing airport benchmark of Sh440 per kilogramme, the report states, the shipment would have generated an expected Sh21.56 million tax. That meant the taxes paid appeared higher than the benchmark.

Physical inspection, however, revealed a substantial discrepancy in the quantity and type of phones contained in one of the entries.

The entry had declared 3,000 mobile phones valued at $10 (about Sh1,295) each, with Sh2.52 million paid in taxes. Investigators instead found 55,607 ordinary smartphones, resulting in an under-declaration of 52,607 units.

KRA calculated total taxes payable on the smartphones at Sh49.92 million against Sh2.52 million already paid on the declared phones, yielding an additional tax liability of Sh47.39 million, according to the investigation report.

There are also 309 undeclared premium phones, including 38 Samsung Galaxy S26 Ultra units, 24 Galaxy Z Fold 8s, 24 iPhone 17 Pro Max units and 19 Galaxy S25s, among other models, raising the tax bill to Sh56 million.

The assessment includes import duty, excise duty, value-added tax, the Import Declaration Fee and Railway Development Levy.

For the ordinary smartphones, KRA used an estimated free-on-board value of $10 per unit, while the 309 high-end phones were provisionally valued at $150 each.

The authority said the assessment for the premium devices could change following a formal valuation.

‘The additional taxes applicable to the high-end mobile phones are provisional estimates, pending valuation guidance from the Customs Valuation and Tariff Unit,’ the report says.

President Ilham Aliyev received newly appointed Ambassador of Sweden to Azerbaijan [PHOTOS/VIDEO]

President of the Republic of Azerbaijan Ilham Aliyev received the credentials of the newly appointed Ambassador Extraordinary and Plenipotentiary of the Kingdom of Sweden to Azerbaijan Louise Morsing on September 23.

The Ambassador presented her credentials to the head of state.

President Ilham Aliyev held a conversation with the Ambassador.

Expressing hope that the successful development of bilateral relations will continue and new areas of cooperation will be identified in the coming years, the head of state highlighted the importance of mutual visits and meetings at various levels in this regard and noted good opportunities for partnership in the investment, trade, and business sectors.

President Ilham Aliyev wished the Ambassador success in her diplomatic activity.

Expressing gratitude to the head of state for the reception, the Ambassador emphasized that she would make every effort to further expand bilateral relations.

The Ambassador conveyed her congratulations to President Ilham Aliyev on the progress achieved in the peace agenda between Azerbaijan and Armenia. She also noted that she welcomes the steps taken toward building trust between the two countries.

Stating that a large number of Azerbaijani students study in Sweden and that their academic level is highly appreciated, the Ambassador expressed hope that these students will contribute to the development of Azerbaijan-Sweden relations during their future careers.

Louise Morsing also touched upon the positive dynamics in relations between Azerbaijan and the European Union, emphasizing in this context that negotiations on the bilateral agreement have resumed.

The Ambassador highly appreciated the humanitarian assistance provided by Azerbaijan to Ukraine.

Touching upon the peace process between Azerbaijan and Armenia, President Ilham Aliyev stated that Azerbaijan was the initiator and author of the peace agenda, characterizing the peace achieved between the two countries as unprecedented in the world.

Noting that Azerbaijan-European Union relations are currently very good, the head of state recalled the visits to Azerbaijan this year by President of the European Council António Costa, President of the European Commission Ursula von der Leyen, and High Representative of the European Union for Foreign Affairs and Security Policy and Vice-President of the European Commission Kaja Kallas, as well as his meetings with them on the sidelines of international events.

During the meeting, the sides exchanged views on the current state of and prospects for cooperation between Azerbaijan and Sweden, and discussed matters of mutual interest.

DA eyes millet as alternative feed to cut corn reliance and costs

The Department of Agriculture (DA) is exploring millet as an alternative feedstuff for corn in its bid to slash production costs and minimize exposure of feed supplies to weather-driven disruptions.

Agriculture Secretary Francisco Tiu Laurel Jr. said he examined millet and other feed ingredients during his recent trip to India whose experience with the drought-tolerant crop could provide lessons for Philippine livestock producers.

The DA explained that millet is a group of small-seeded cereal grasses used for food and animal feed.

It can grow under relatively dry conditions, requiring less water than corn, thus making it a potential alternative when drought affects conventional feed crops.

For livestock producers, the DA said the economic consideration is just as important.

Since corn is a major feed ingredient, any disruptin in production will translate into higher input costs.

‘Developing other feed sources could give farmers and feed manufacturers more flexibility, although commercial adoption would still depend on yield, nutritional value, processing requirements and cost.’

Meanwhile, the DA noted that feed initiative forms part of the agency’s efforts to broaden the domestic carabao and dairy industries.

Tiu Laurel said building domestic capacity for feed production and processing is key to strengthening the livestock industry.

‘When communities can grow, process, and mill their own feed, we lower costs, raise productivity, and make our food system more resilient,’ he said.

The Philippine Carabao Center (PCC) recently launched a P237.9-million facility housing, dubbed the world’s first laboratory dedicated exclusively to sex-sorting buffalo semen.

Using flow cytometry, the laboratory separates sperm carrying X and Y chromosomes with about 90 percent accuracy.

With this, breeders can target female offspring for dairy production or males for meat and draught work.’The sorted semen is cryogenically preserved for artificial insemination programs nationwide.’

The PCC said it aims to produce about 170,000 sex-sorted semen straws annually, particularly to increase female offspring and expand the local dairy herd.

The agency said this initiative comes against a significant deficit in domestic output.

At present, Philippine milk production only meets less than 5 percent of national demand, leaving the country reliant on imported dairy products and breeding stock.

Local production of sex-sorted semen could then lower procurement costs, reduce exposure to livestock disease risks associated with foreign sourcing, and provide breeding material better adapted to Philippine conditions.

‘Taken together, the millet and buffalo breeding initiatives point to a broader DA strategy of addressing livestock costs from both ends, by improving what animals eat and expanding the domestic herd that produces milk and meat.’

Yeni Gala Concert Complex opens as part of Uzeyir Hajibayli Int’l Music Festival

The “Yeni Gala” concert complex has opened on the grounds of the Bina Equestrian Center as part of the 18th Uzeyir Hajibayli International Music Festival.

The government officials and representatives of the arts attended the opening ceremony.

Speakers noted that the complex combines elements of national architecture with modern technical facilities, creating extensive opportunities for staging open-air opera performances, concerts and other events.

A concert program featuring the Azerbaijan State Academic Opera and Ballet Theatre was presented as part of the opening ceremony.

People’s Artist Yusif Eyvazov, Honored Artists Afaq Abbasova and Anton Ferstandt, soloists Atash Garayev and Aytaj Shikhali-zade, as well as the theatre’s orchestra and choir, performed under the baton of conductor Mustafa Mehmandarov.

The artistic program opened with a cavalry parade and featured a total of 13 musical pieces in various genres.

The 18th Uzeyir Hajibayli International Music Festival, organized by the Heydar Aliyev Foundation and the Ministry of Culture, is running until September 30.

The annual music festival brings together renowned performers and ensembles from several countries.

Alongside Baku, concerts, performances, exhibitions, presentations and other cultural events are being held in Agjabadi, Ganja, Shusha, Lachin, Aghdam and Lankaran.

Various events are also taking place in Uzbekistan, Germany and Turkiye as part of the festival.

This year’s festival also features the 1st Congress of Composers of the Turkic World.

’Persona grata’

Trinidad and Tobago Prime Minister Kamla Persad-Bissessar is to pay an official visit to Venezuela after she held a ‘cordial working meeting’ on Wednesday with the acting Venezuelan President, Delcy Rodríguez that both parties say heralds ‘the beginning of a new era in bilateral relations’.

The meeting took place on the sidelines of the ongoing 81st session of United Nations General Assenbly (UNGA) and according to a joint statement issued afterwards, the two leaders ‘reaffirmed the historical bonds of friendship and cooperation that unite Venezuela and Trinidad and Tobago’.

The statement said that ‘with the purpose of maintaining a direct consultation mechanism at the highest level, both dignitaries agreed to pay official visits to Caracas and Port of Spain’ with the ‘Venezuelan side indicating ‘that the Prime Minister was indeed Persona Grata in Venezuela’.

No date has been announced for the visits.

US, Japan and South Korea seek North Korea’s denuclearization

The United States, Japan, and South Korea have reaffirmed their commitment to the complete denuclearization of North Korea and to addressing its nuclear and ballistic missile programs.

According to the U.S. Department of State, the three countries also intend to strengthen efforts to prevent North Korea from obtaining financial resources that could be used to support its nuclear and missile programs. Washington, Tokyo, and Seoul have previously emphasized the importance of enforcing international sanctions and closing loopholes that allow Pyongyang to generate revenue for prohibited activities.

At the same time, the three foreign ministers stressed that diplomatic channels should remain open. They expressed support for dialogue with North Korea and called on Pyongyang to return to negotiations aimed at reducing tensions and promoting peace and stability on the Korean Peninsula.

The officials also agreed to expand cooperation in several other areas, including economic security, artificial intelligence, energy, and emerging technologies. These areas have become increasingly important as the three countries seek to strengthen their cooperation not only in traditional security but also in technology and supply-chain resilience.

Trilateral cooperation between Washington, Tokyo, and Seoul has become an important part of their approach to regional security. The countries regularly exchange information and coordinate their responses to North Korean missile launches and nuclear activities. They have also discussed cybersecurity and measures to counter illicit financial activities linked to North Korea.

An interesting fact is that cooperation among the three countries extends far beyond military issues. In recent years, they have increasingly focused on areas such as artificial intelligence, critical technologies, energy security, and supply chains. This reflects a broader shift in international security, where technological and economic resilience are becoming closely connected with traditional national security.

The three governments therefore face a dual challenge: maintaining pressure on North Korea over its nuclear and missile programs while keeping diplomatic channels open in case opportunities for dialogue emerge.

HAITI-POLITICS-Antigua and Barbuda supports Haiti calling for renewal and deployment of GSF

Antigua and Barbuda Wednesday joined Haiti in urging the Organization of American States (OAS) to call for the renewal and full deployment of the Gang Suppression Force(GSF) in the French-speaking Caribbean Community (CARICOM) country.

The GSF is a United Nations-authorised multinational security and police mission deployed to Haiti to conduct intelligence-led operations, neutralize armed gangs, secure critical infrastructure, and support humanitarian access as the country moves towards holding presidential and legislative elections on December 13.

Antigua and Barbuda Ambassador to the OAS, Sir Ronald Sanders in joining the Haitian ambassador, Jean Josué Pierre, made the appeal in a Joint Statement as the United Nations Security Council prepares to consider renewal of the 5,500 GSF’s mandate before the end of September.

Sir Ronald, who is Dean of the OAS Corps of Ambassadors, said the central purpose of the proposed statement was ‘clear and urgent.

‘We call upon the United Nations Security Council to renew the mandate of the Gang Suppression Force, and upon the international community to ensure its full and consistent deployment,’ he said, cautioning that renewal of the mandate would achieve little unless governments honoured their commitments of personnel, financing, equipment and logistical support.

‘A force authorised on paper but deprived of the resources necessary to fulfil its mandate cannot deliver the security that the Haitian people desperately need. Words of support must now be matched by the resources and resolve that can turn solidarity into security,’ Sanders added.

The proposed Joint Statement calls for the GSF to support the Haitian National Police and the Armed Forces of Haiti in restoring lawful state authority in gang-controlled areas, securing the airport and port, reopening vital transport routes and protecting the population.

It also calls for stronger international action to stop the illicit flow of arms and ammunition into Haiti, disrupt the financial and supply networks sustaining the gangs, and identify, expose and bring to justice those who finance, arm or otherwise enable them.

‘Security must create the space in which constitutional and democratic government can be restored.It must also permit humanitarian assistance, economic recovery and opportunity for Haiti’s young people.

‘Haiti is asking us to help create the conditions in which the Haitian people can reclaim their future for themselves. Let us call with one voice for renewal of the mandate, full deployment of the Force and fulfilment of the commitments made to Haiti,’ Sir Ronald added.

15 Easter Sunday attack accused convicted, sentenced to 220 years each

The Colombo Permanent High Court Trial-at-Bar yesterday sentenced 15 people convicted over the 2019 Easter Sunday attacks to 220 years of rigorous imprisonment each, concluding the main case over Sri Lanka’s deadliest terrorist attack.

The court also ordered the confiscation of the movable and immovable assets of those convicted, effective from the commencement of their sentences.

The three-judge bench, comprising High Court Judges Navaratne Marasinghe, Ramanathan Kannan and Sujeewa Nissanka, unanimously found 15 of the 24 defendants guilty on 22 September, 2026. The remaining nine were acquitted and released.

The coordinated suicide bombings on 21 April, 2019 targeted three Catholic churches and three leading hotels, killing 269 people, including foreign nationals, and injuring more than 500 others, including children. The attacks were carried out by nine suicide bombers, among them National Thowheed Jama’ath member Zahran Hashim.

The Attorney General filed more than 23,270 charges against 25 individuals in 2019, including conspiracy, aiding and abetting the attacks, murder and offences involving firearms and explosives. The charges were brought under Sections 2(1)(h) and 2(2) of the Prevention of Terrorism Act (PTA) and related to conspiring to carry out the attacks, aiding and abetting them, promoting extremist ideologies and inciting discord among ethnic groups.

A total of 2,309 prosecution witnesses testified during evidentiary hearings that ran for several years and concluded on 24 August. The indictment comprised nine volumes and approximately 8,900 pages.

The court considered evidence on extremist lectures and weapons training conducted before the attacks, as well as the establishment and maintenance of training workshops and safe houses.

Presiding Judge Navaratne Marasinghe said that given the length of the judgment, only its most important points would be read in open court.

Explaining the court’s approach to establishing involvement in the conspiracy, Marasinghe said: ‘There is no requirement for those involved in a conspiracy to be gathered together in one place. A conspiracy or agreement can be direct or implied. Those who became involved at the beginning, midway or toward the end can all be parties to the conspiracy.’

The court rejected the defences of the first defendant, Mohamed Ibrahim Mohamed Naufar, alias Naufar Moulavi; the second defendant, Gafoor Maama; the third defendant, Hayaathu Mohamed Milhan; the fourth defendant, Mohamed Ibrahim Saadik Abdullah; the fifth defendant, Mohamed Ibrahim Sahid Abdullah; and 10 others.

The bench held that charges against the first to eleventh and the fifteenth to eighteenth defendants had been proved beyond reasonable doubt. It acquitted the twelfth, thirteenth, fourteenth and twentieth to twenty-fifth defendants, ruling that the prosecution had failed to meet that standard.

Heavy security was deployed at the Hulftsdorp court complex ahead of the verdict, including the Police Special Task Force, sniffer dogs, a mobile CCTV unit and ambulances. Catholic priests were among those present when the bench began delivering the verdict at approximately 11.30 a.m.

The Attorney General filed indictments against Mohammed Ibrahim Mohammed Nawfar alias Naufar Moulavi, Mohammed Saribu Adam Lebbe (Abu Hadik), Hayathu Mohammed Milhan (Abu Zillah), Mohammed Ibrahim Sadiq Abdullah (Abu Umar), Mohammed Ebrahim Abdul Haq (Abu Fala), Mohammad Anwar Mohammad Riskan (Abu Tariq), Mohammad Mansoor Mohammad Sanasdeen (Abu Misan), Abdul Manaf Mohammad Piridavus, Mohammad Ramish Mohammad Zarik, Abdul Latif Mohammad Safi (Safi Moulavi / Abu Furqan), Husseinul Rizvi Mohammad Kahir Samir, Mohammad Zawheer Mohammad Hassan (Abu Dawood), Mohammad Iftikhar Mohammad Insaf (Abu Mohammad), Rashid Mohamed Ibrahim, Mohammed Hanifa Zainul Abdin (Abu Hina), Mohamed Mustafa Mohamed Haris (Abu Nanjiar), Yassin Bawa Abdul Rauf, Rasik Raza Hussain, Kachchi Mohamed Jasmine, Zainul Abdeen Mohamed Jaseen, Mohamed Mustafa Mohamed Rizwan, Meera Saheed Mohamed Nafli (Abu Sana), Mohamed Amin Ayantullah, Mohamed Ansar Deen Hilmi and Mohamed Akram .