Axelum to take advantage of Philippines competitiveness

MANILA, Philippines — Axelum Resources Corp., a listed integrated manufacturer and exporter of premium coconut products, intends to capitalize on the Philippines’ competitive position over neighboring coconut exporting countries once the United States resumes its higher reciprocal tariffs for most of its trade partners.

Axelum vice president and investor relations officer Paul Cheah told The STAR that based on the announced tariff regime, the Philippines could benefit from the lower tariffs imposed by the US on its exports compared to its neighbors in Asia.

“In general, Philippine exports are poised to strengthen competitiveness relative to competing products within the region due to higher levies imposed on neighboring coconut exporting countries,” Cheah said.

“As a company, we will continue to assess the broader impacts of these tariffs, particularly on inflation, commodity prices, supply chain, consumer spending and other cross-border activity,” he said.

The 17-percent reciprocal tariff on all Philippine goods imposed by US President Donald Trump earlier this month is lower than those on most of its Southeast Asian neighbors, with Cambodia at 49 percent, Vietnam at 46 percent, Thailand at 36 percent, Indonesia at 32 percent and Malaysia at 24 percent.

Trump, however, decided to temporarily pause most reciprocal tariffs, including those on the Philippines.

After several countries asked to negotiate with the US on the tariffs, Trump authorized a 90-day pause and substantially lowered the reciprocal tariffs to 10 percent for most countries, including the Philippines.

Axelum, which is 34.8 percent owned by a subsidiary of Manuel V. Pangilinan-led Metro Pacific Investments Corp., exports and distributes its products in major markets around the world, including the US, Canada, Australia, New Zealand, Europe, the Middle East, Japan and major countries in Asia.

Axelum said its competitive landscape consists of key players from the Philippines, Malaysia, Sri Lanka, Vietnam and Indonesia.

The company caters its products to end customers, including multinational food and beverage companies, confectioneries and bakeries.  It also provides customized products to various international and local brands.

It sources the majority of its raw materials directly from approximately 10,000 farmers and through strategically located nut-buying outlets. 

Axelum’s plant is strategically located in Northern Mindanao, which enables it to access supply within a 300-kilometer radius.

For 2025, Axelum aims for next-level growth following a turnaround last year driven by record-high sales.