PHL net external liability position widens to ₧2.6T
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HE country ended 2023 with a wider net external liability position, according to the latest Balance Sheet Approach (BSA) report released by the Bangko Sentral ng Pilipinas (BSP). The country’s net external liability position widened by 6.1 percent quarter-on-quarter to P2.6 trillion in the last quarter of 2023 from P2.4 trillion in the third quarter of 2023. BSP said this was largely due to the higher net external liability positions of the general government and the non-financial corporations. “However, these were tempered by the higher net external asset position of the central bank,” BSP said in a statement. The data showed the central bank’s net financial asset position rose by 12.1 percent
MOA Globe lights up for the 75th anniversary of Canada-Philippines diplomatic ties. Canada’s Ambassador to the Philippines David Hartman and SM Supermalls President Steven Tan recently led the lighting of the SM Mall of Asia Globe to celebrate 75 years of diplomatic ties between Canada and the Philippines. The commemorative display on the iconic landmark is one of the highlights of the Canadian Embassy’s Canada Day celebration on July 1, and the milestone anniversary marking the establishment of diplomatic relations between the two countries. Also joining the lighting were (from right) SM Supermalls Executive Vice President for Marketing Joaquin San Agustin and Vice President for Corporate Marketing Grace Magno, and the Embassy of Canada’s Senior Trade Commissioner Guy Boileau. SM SUPERMALLS
quarter-on-quarter to P891.6 billion from P795.2 billion due to the decline in deposits from the general government. “The central bank’s net external assets rose. On a year-onyear basis, the central bank’s net financial asset position widened as the country’s gross international reserves increased,” it added. By sector, BSP said the general government’s net financial liability position expanded by 7.7 percent quarter-on-quarter to P9.7 trillion from P9 trillion. This was due to the decline in the national government’s deposits with the central bank. The deposits were used for disbursements, allotments to local government units and interest payments. The BSP also traced the increase in the net debt position
of the general government to higher government securities holdings of the rest of the world, other depository corporations, and other financial corporations. “On an annual basis, the general government’s net financial liability position rose as the government security holdings of the other depository corporations, the rest of the world, and the other financial corporations increased. Similarly, the sector’s loans from non-residents grew,” the BSP also said. The data also showed the non-f inancia l cor porat ions’ net financial liability position widened by 4.8 percent quarter-on-quarter to P9.1 trillion from P8.7 trillion ‚due to, BSP said, higher loans from banks and non-resident units. Nonresidents’ holdings of equity and
investment fund shares issued by non-financial corporations expanded, it said. On a year-on-year basis, BSP said liabilities of non-financial corporations’ net financials expanded due to the increase in the sector’s loans from the rest of the world. The central bank also reported an increase in the nonfinancial corporations-issued equity and investment fund share holdings of the other financial corporations.
Households MEANWHILE, the households’ net financial asset position increased by 5.4 percent quarteron-quarter to P13.4 trillion from P12.7 trillion on the back of the increase in the sector’s deposits in banks. See “PHL,” A
ROTARY CLUB OF MANILA JOURNALISM AWARDS
2006 National Newspaper of the Year 2011 National Newspaper of the Year 2013 Business Newspaper of the Year 2017 Business Newspaper of the Year 2019 Business Newspaper of the Year 2021 Pro Patria Award PHILIPPINE STATISTICS AUTHORITY 2018 Data Champion
EJAP JOURNALISM AWARDS
BUSINESS NEWS SOURCE OF THE YEAR 2017, 2018, 2019, 2020, 2021 DEPARTMENT OF SCIENCE AND TECHNOLOGY
2018 BANTOG MEDIA AWARDS
Tuesday, July 2, 2024 Vol. 19 No. 259
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‘TARIFF CUTS WON’T LEAD TO CHEAPER RICE SOON’ By Cai U. Ordinario
@caiordinario
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HE reduction in rice tariffs may not immediately lead to lower prices as international market quotations remain elevated, according to BMI, a Fitch Solutions company. BMI also said the shortfall in rice production, forecasted by the United States Department of Agriculture (USDA), will contribute to the high cost of rice in the domestic market. Citing data from the Food and Agriculture Organization (FAO), BMI said the average retail prices for regular- and well-milled rice in the Philippines stood at P51.03 per kilogram and P56.06 per kilogram, respectively, both of which were around 25 percent higher than 12 months earlier. “In the near term, we expect that the reduction in rice import tariffs could see domestic rice price pressures in the Philippines ease—notwithstanding the widening in the Philippine domestic rice production deficit between 2023/24 and 2024/25 that the USDA forecasts,” BMI said. “In the immediate term, how-
ever, the reduction will not have a noticeable impact on domestic prices due to the feedthrough time lag,” it added. The reduction in rice tariffs, however, will significantly benefit the country’s largest source of imported rice, Vietnam, particularly its rice traders. Given the reduction in tariff, this could lead to larger rice import volumes from the Philippines leading to even higher rice prices in the international market. The Philippines was considered the world’s second-largest rice importer in 2023. The country cornered 5 percent of the global import market in value terms. “We note, however, that international rice prices remain elevated and that—with India’s rice export restrictions still in place and the negative impact of the recent See “Tariff ,” A
A WORKER arranges a metal post in Pandacan, Manila. The Regional Tripartite Wages and Productivity Board (RTWPB) on Monday (July 1, 2024) approved the P35 hike in the daily minimum wage of workers in the National Capital Region (NCR), increasing it from P610 to P645. This will be effective 15 days after the publication of the order in national dailies. Story in Umbrella at top of page. NONIE REYES
Groups say ₧35 hike for ‘SHAKY MONDAY’: QUAKES HIT VISAYAS, LUZON–PHIVOLCS NCR workers not enough By Jonathan L. Mayuga @jonlmayuga
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SERIES of strong earthquakes was recorded by the Philippine Institute of Volcanology and Seismology (Phivolcs) in Luzon and Visayas on Monday. The first of such earthquakes with a magnitude of 4.6 was recorded around 6:53 a.m. in Western Occidental Mindoro. Intensity IV was recorded in Rizal and Intensity I in Maburao and Magsaysay, as well as in Occidental Mindoro. It had a depth of 13 kilometers.
Around 8:45 a.m., another earthquake struck, this time in Tuao, Cagayan Province. It had a depth of 12 kilometers. At 10:02 a.m., a 3.2-magnitude earthquake struck Abuyog, Leyte Province, which was felt with an Intensity I strong movement on the earth’s surface in Abuyog. Around 1:22 p.m., a 4.9-magnitude earthquake also struck Abuyog, Leyte. While it had a shallow depth of 2 kilometers, Intensity III was felt in Hindundayan and Hinunganan, Southern Leyte; Dulag, Javier, and Abuyog in Leyte Province. See “Quakes,” A
By Jovee Marie N. dela Cruz @joveemarie
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HE Regional Tripartite Wages and Productivity Board (RTWPB) has approved a P35 hike in the daily minimum wage for workers in the National Capital Region (NCR), but this was quickly assailed by two party-list representatives, who described it as insufficient and failing to address the economic needs of Filipino workers. The Gabriela Women’s Party and the Trade Union Congress of the Philippines (TUCP), in separate statements, voiced strong objections to the recently approved P35
minimum wage hike, which would bring the daily rate in Metro Manila to P645, effective July 17. Rep. Arlene Brosas of Gabriela said it falls significantly short of what Filipino families need for a dignified life. “This P35 increase is an insult to Filipino workers. It’s barely different from the P25 wage hike implemented way back in 1989, and lower than the P40 hike granted last year. How can the government expect NCR workers to survive on P645 a day when the Family Living Wage stands at P1,200 and when prices continue to accelerate?” she said. See “Groups,” A
PESO EXCHANGE RATES Q US 58.6580 Q JAPAN 0.3647 Q UK 74.2141 Q HK 7.5121 Q CHINA 8.0716 Q SINGAPORE 43.2836 Q AUSTRALIA 39.1601 Q EU 63.0104 Q KOREA 0.0425 Q SAUDI ARABIA 15.6355 Source: BSP (July 1, 2024)