PHL CEOs ‘kept awake’ by tensions, but remain bullish By Andrea E. San Juan @andreasanjuan
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ESPITE geopolitical uncertainty keeping majority of Philippine CEOs awake at night, 86 percent of company leaders remain optimistic about industry prospects and revenue growth in the next 12 months, according to the 2024 Philippine CEO Survey. The survey was conducted by PwC and Management Association of the Philippines (MAP) from July to August 2024 among 168 business leaders in the country, of whom 62 percent said that geopolitical uncertainty keep them “awake at night.” PwC said ongoing events such as the Russia-Ukraine war, IsraelHamas conf lict and territorial disputes in the South China Sea have had “far-reaching” implications
for global trade, supply chains and economic stability. However, CEOs in the country remain “upbeat,” about the global economy despite external pressures, with 52 percent seeing global economic growth improving in the next 12 months. The 2024 Philippine CEO Survey noted that the business leaders in the country are optimistic about their industry’s future, with 86 percent expressing confidence in their business prospects and 85 percent confident that their company will experience revenue growth in the next 12 months. Explaining the confidence among CEOs amid geopolitical uncer tainty, Roderick Danao, PwC Philippines Chairman and Senior Partner, said at the briefing held in Makati City on Monday that “fracturing geopolitics is an
ongoing issue,” recognizing that the Philippines is a net importer of goods such as oil, gas, grain and some raw materials. “We import oil and gas, we import grain and some of the raw materials of the products that we produce in the Philippines. So it affects us. It’s disruptive,” Danao said. However, he explained that a few local firms have managed to mitigate the effect by putting in place strategies such as “product diversification, market diversification and supply chain diversification.” For her part, Trissy Rogacion, Deals and Corporate Finance Partner, PwC Philippines, said the impact they are seeing is in the cash flows. “Because we monitor the cash flows of our clients, so they’re really directly impacted. So if they have a See “PHL,” A2
BULLETPROOF DEFENSE Dismissed Bamban Mayor Alice Guo, wearing a bulletproof vest, confers with her lawyer, Stephen David, during a Senate hearing on September 9, 2024, shortly after her deportation from Indonesia. The hearing focused on her connections to the raided POGO firm in Bamban, Tarlac, and her escape despite a Senate warrant. The Senate panel cited Guo in contempt for “testifying falsely and evasively” about her identity. Story in A3 Nation. ROY DOMINGO
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BANKS POST 2-YR HIGH IN BAD LOANS RATIO By Cai U. Ordinario
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NAIA MANAGEMENT TRANSFER Department of
@caiordinario
Transportation (DOTr) Secretary Jaime Bautista and San Miguel Corporation (SMC) Chair and CEO Ramon Ang attended the Economic Journalists Association of the Philippines’s (Ejap) first-ever aviation forum. This event occurred just days before the management transfer of Ninoy Aquino International Airport (Naia), the country’s main gateway, to the private sector under a Public-Private Partnership (PPP) arrangement, marking a major shift in the airport’s operations and management. From left: Stanley Ng, Philippine Airlines President; Alexander Lao, Cebu Pacific President; Ramon Ang, SMC Chairman and CEO; Jaime Bautista, DOTr Secretary; Angelito Alvarez, Naia General Manager; Carlos Luis Fernandez, Philippine Airlines Executive Vice President; and Ricardo Isla, AirAsia Philippines CEO. NONIE REYES
HE local banking industry’s bad loans ratio posted the highest rate recorded in two years, according to the latest data released by the Bangko Sentral ng Pilipinas (BSP). Data showed the gross non-performance loan (NPL) ratio reached 3.58 percent in July 2024. This was the highest NPL ratio since the 3.6 percent posted in June 2022. BSP data showed the Philippine banking system’s total gross NPL amounted to See “Banks,” A2
‘AUG INFLATION AFFIRMS BSP ON 1 MORE RATE CUT IN 2024’
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HE latest inflation print supports the view of the Bangko Sentral ng Pilipinas (BSP) on the wisdom of dealing another cut in key policy rates this year, a US-based think tank said. Moody’s Analytics noted that cheaper food, particularly rice, significantly contributed to the downtrend in inflation. T he Bangko Sentral ng Pilipinas (BSP) also noted in its Monetary Policy Report (MPR) that the worst may be over in terms of the rise in commodity prices until 2026, based on the view of external forecasters they sur veyed.
(https://businessmirror.com. ph/2024/09/09/forecastersin-bsp-poll-inflation-trendingdown-till-26/). “With headline inf lation back on the downtrend, it supports the case for at least one more rate cut by the BSP in the fourth quarter,” Moody’s Analytics said. The US-based think tank noted that rice was a major factor in slower inflation in August as the increase in rice prices slowed to 14.7 percent after seven consecutive months of posting an inflation of above 20 percent. See “Inflation,” A2
Naia rehab tough, but SMC’s Ramon Ang vows to deliver By Lorenz S. Marasigan @lorenzmarasigan
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EW Naia Infrastructure Corp. (NNIC) is poised to officially take over the operations and maintenance of Ninoy Aquino International Airport (Naia) this Saturday, marking the start of an ambitious modernization plan aimed at transforming the country’s busiest gateway into a world-class facility. S a n M i g u e l C o r p. ( S M C ) President Ramon S. Ang said upgrading the Naia will not be a walk in the park, but the company is ready to take on the challenge of improving what was once touted as the world’s worst airport. “There will be challenges but we are committed to delivering on our
promise,” he told participants of the inaugural Economic Journalists of the Philippines (Ejap)-SMC Aviation Forum on Monday.
‘Gradually, methodically’
NNIC General Manager Angelito Alvarez noted that the initial weeks and months of takeover will focus on ensuring that the transfer will “not disrupt current operations” and that Naia “will be business as usual.” “Right now, Naia is running at around 51 million passengers— that’s the outlook for 2024. So you can just imagine the congestion that’s happening right now at the airport in terms of terminal capacity,” he said. Alvarez explained: “Upon See “NAIA,” A2
PESO EXCHANGE RATES n US 55.9620 n JAPAN 0.3936 n UK 73.4949 n HK 7.1794 n CHINA 7.8820 n SINGAPORE 42.9552 n AUSTRALIA 37.3099 n EU 62.0395 n KOREA 0.0419 n SAUDI ARABIA 14.9089 Source: BSP (September 9, 2024)