A broader look at today’s business www.businessmirror.com.ph
n
Wednesday, October 16, 2024 Vol. 20 No. 7
P25.00 nationwide | 3 sections 28 pages | 7 DAYS A WEEK
MAXIMIZE REMITTANCE FLOWS–EXPERTS TO GOVT By Cai U. Ordinario
E
@caiordinario
Funding for DRR needs ramping up, says Marcos
FFORTS to deepen the capital markets could offer solutions to maximize Overseas Filipino Worker (OFW) remittances but more needs to be done to market these instruments to Pinoys abroad, according to experts. Based on the latest data from the Bangko Sentral ng Pilipinas (BSP), OFW’s cash remittances grew 2.9 percent to $22.22 billion in Januar y-Aug ust 2024 from $21.58 billion registered in January-August 2023. Fi lipino A lv in P. A ng told BusinessMirror that given the latest data, remittance f lows are on track to hit $34 billion to $36 billion by yearend. However, the bigger challenge of maximizing these f lows remain. “Remittance kasi personal decision ng families kaya relatively resilient. [Remittance is a personal decision of families that is why they are relatively resilient],” Ang told this newspaper. “Dapat magoffer sila [government] and the private sector ng investment instruments beyond real estate. [The government and the private sector should offer investment instruments beyond real estate],” he added. Ang also lamented challenges in accessing existing instruments like the Personal Equity and Retirement Account (PERA). He believes these kinds of instruments should be better explained to OFWs and their families. These efforts, Ang said, should be complemented by encouraging more Filipinos to invest. The See “Remittance,” A2
By Samuel P. Medenilla @sam_medenilla
R
CRISIS CONTROL President Ferdinand R. Marcos Jr., alongside regional leaders and disaster management experts, opened the Asia-Pacific Ministerial Conference on Disaster Risk Reduction
(APMCDRR) at the PICC in Pasay City on October 15, 2024. Key attendees included Environment Secretary Maria Antonia Yulo-Loyzaga; Defense Secretary Gilberto Teodoro Jr.; Mongolia Deputy Prime Minister Amarbayasgalan Dashzegve; Khamal Kishore, Special Representative of the United Nations Secretary-General for Disaster Risk Reduction, and head of the United Nations Office for Disaster Risk Reduction; and Marco Toscano-Rivalta, Chief of Office UNDRR Regional Office for Asia and the Pacific. The conference unites stakeholders across the region to devise strategies aimed at reducing the risks and impacts of natural disasters. NONIE REYES
FINANCIAL SYSTEM’S TOTAL RESOURCES UP 9.2% IN AUG
T
HE total resources of the financial system increased 9.2 percent in August 2024, according to the Bangko Sentral ng Pilipinas (BSP). The latest BSP data showed the financial system’s resources reached P32.14 trillion in Aug ust 2024, h igher t ha n t he P 2 9.4 3 t r i l l i o n p o s t e d i n Aug ust 2023. The total resources in August 2024 have already exceeded the P31.198 trillion posted in the full year of 2023. The bulk or about 83 percent
of the P32.14 trillion total are held by banks, P26.81 trillion, while non-bank financial institutions (NBFIs) hold P5.33 trillion or some 16 percent of the total. NBFIs include BSP-supervised investment houses, financing companies, investment companies, securities dealers/ brokers, pawnshops, lending investors, non-stock savings and loan associations (NSSLAs), credit card companies, government non-bank financial institutions (i.e., Philippine Guarantee Corporation and Small
Business Cor poration), and authorized agent banks (AAB) forex corporations. Meanwhile, bank resources in August 2024 increased 10.62 percent from the P24.24 trillion posted in August 2023 while NBFIs grew 2.62 percent in August 2024 from the P5.197 trillion in the same month last year. Almost all the resources or about 93.58 percent or P25.087 trillion of bank resources was accounted for by Universal and Commercial Banks (UKBs) in August 2024. The BSP data showed the
resources of UKBs grew 10.59 percent from the P22.685 trillion recorded in August 2023. The data also showed bank resources included the P1.13-trillion resources of thrift banks, a 7.81-percent growth from the P1.05 trillion posted in August last year. The BSP also said digital bank resources reached P110.3 billion in August 2024. This was 29.76 percent higher than the P85 billion posted in the same period last year.
AMPING up financing for climate-vulnerable countries and the completion of an international legal instrument for assisting disaster-affected persons will be necessary in achieving global targets under the Sendai Framework for Disaster Risk Reduction 2015-2030, according to President Ferdinand Marcos Jr. The chief executive made the remark after United Nations (UN) Secretary General for Disaster Risk Reduction (UNDRR) Kamal Kishore said the international community is lagging behind the Sendai Framework targets. “The Surge to 2030 involves key steps: We must significantly increase our investments and develop financing mechanisms in disaster risk reduction,” Marcos said in his speech at the opening ceremony of the 2024 Asia-Pacific Ministerial Conference on Disaster Risk Reduction (APMCDRR) at the Philippine International Convention Center (PICC) in Pasay City on Tuesday. “Sustained and predictable data and financing would help address disaster risks better,” he added. The President said the Philippines will help address the gaps as host and member of the Loss and Damage Fund (LDF) board. Established during the United Nations Climate Conference 2022 (COP27) in Egypt with an initial funding of US$726 million, the LDF provides financial support to low-income countries that are heavily affected by climate change. “This reinforces our commitment to improving the Board’s operations and to contribute to the success of its institutional architecture,” Marcos said.
See “Financial,” A2 See “DRR,” A2
PESO EXCHANGE RATES n US 57.3670 n JAPAN 0.3830 n UK 74.2050 n HK 7.3900 n CHINA 8.0913 n SINGAPORE 43.8753 n AUSTRALIA 38.5793 n EU 62.5817 n KOREA 0.0423 n SAUDI ARABIA 15.2787 Source:
BSP (15 October 2024)