Despite EO 62, rice price dip slow—Neda B S P. M @sam_medenilla
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OILED WATERS, CLEAR HORIZONS A fisherman in Bacoor, Cavite, prepares his outrig-
ger for a return to the sea as the community begins to recover from the devastating oil spill in Bataan. The spill, which affected 33,000 fishermen, left many without their primary source of income. President Marcos announced that the spill has been successfully contained, allowing fishermen to resume their “labor of love” after weeks of uncertainty. This marks a crucial step in the recovery process for the coastal communities whose livelihoods depend on the sea. NONIE REYES
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
ESPITE implementation of Executive Order (EO) 62 which reduced the tariff for rice to 15 percent, the National Economic and Development Authority (Neda) said the pace of the decline in the prices of the staple is still “slow.” Citing data from the Philippine Statistics Authority (PSA), Neda Secretary Arsenio M. Balisacan said the reduction in the retail price of rice has been gradual. “But hopefully as the world rice market situation improves, and
also stakeholders are able to adjust...we will see improvements [in the price of rice],” Balisacan told Palace reporters in a chance interview last Wednesday. In June, President Ferdinand Marcos issued EO 62, which reduced the tariff for rice to 15 percent from 35 percent to ease prices. Rice and other cereals and cereal products are still among the main contributors to food inflation as of July, according to PSA. Balisacan said it will take some time before the impact of EO 62 is felt. However, he said the current tariff rate for rice will be reviewed
by November. “We are monitoring the situation and I think that our team, that committee, that inflation and market outlook committee looking into the market situation for the different agricultural products will come out with the report soon [for rice],” he said.
Price trends
IN its market price monitoring report in Metro Manila, the Department of Agriculture (DA) reported that the average weekly price of imported well-milled and regular milled rice in the third week of June reached P53.43 per kilogram
(kg) and P49.78 per kg, respectively. The said prices improved to P52.60 per kg (well-milled) and P49.09 per kg (regular milled) in July, before the price for wellmilled rice slightly rose to P53.04 per kg. For regular milled rice, it continued to P47.08 per kg this month. For local rice, the average weekly price for well-milled rice also consistently dropped from P53.43 per kg last June, to P52.60 per kg and P53.04 per kg this month. The same trend was also obS “N,” A
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JULY BUDGET GAP DOWN, BUT 7-MO DEFICIT UP 7.2% www.businessmirror.com.ph
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Thursday, August 29, 2024 Vol. 19 No. 317
P. | | 7 DAYS A WEEK
SEA export earnings to stay modest till yearend
@reine_alberto
HE national government recorded a P28.8-billion budget shortfall in July 2024, pushing the year-to-date deficit to P642.8 billion, according to the Bureau of the Treasury (BTr). Latest data from the Treasury showed the budget deficit contracted by 39.67 percent in July 2024 to P28.8 billion from the P47.8 billion recorded in the same month last year. However, the 7-month budget gap from January to July 2024 expanded by 7.21 percent to P642.8 billion from the P599.5 billion posted in the same period a year ago. Government spending increased by 5.80 percent year-onyear to P486.2 billion in July 2024 from P411.7 billion, outpacing its revenues at P457.4 billion, also up by 11.09 percent from P411.7 bil-
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lion. The Treasury said disbursements in July went up due to the higher National Tax Allotment (NTA) share of local government units (LGUs). This brought year-todate government spending higher by 13.17 percent to P3.2 trillion from P2.87 trillion in the same period in 2023. Interest payments rose by 24.99 percent year-on-year to P79.4 billion in July 2024 from P63.6 billion. As of end-July 2024, interest payments expanded by 31.98 percent to P456.7 billion from the C A
SPILLING OVER The water level at La Mesa Dam has surged to 80.20 meters, reaching its spilling level due to persistent rains from the Southwest Monsoon,
or “habagat,” as reported by the Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa) on Wednesday, August 28, 2024. Pagasa has issued a flood alert for residents in low-lying areas along the Tullahan River, including Quezon City, Valenzuela, and Malabon. The elevated water flow from the dam is expected to exacerbate flooding risks in these already vulnerable communities. Residents are advised to stay alert as conditions may worsen with continued rainfall. NONOY LACZA
ENVIRONMENT-, ENERGY-TIED PROJECTS GOT LOWEST ODA B C U. O @caiordinario
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S the country races to meet its commitment to the Sustainable Development Goals (SDGs) in less than a decade, the latest government report showed projects linked to environment and energy-related goals received the least number of Official Development Assistance (ODA). The National Economic and Development Authority (Neda) report showed SDG 7 on affordable and clean energy received the least number of ODA with
only 16 projects. This was followed by SDG 14 or Life Below Water where there are only 18 projects; SDG 15 or Life on Land which only have 21 projects; and SDG 12 on Responsible Consumption and Production at 24 projects. “ODA plays a critical role in advancing the Sustainable Development Goals [SDGs], particularly for SDG 17, which emphasizes global partnerships and resource mobilization for sustainable development,” Neda said in its latest ODA Portfolio C A
HE growth of export earnings across Southeast Asia, including in the Philippines, may continue to be modest until the end of next year, according to a UK-based think tank. In an Asia Pacific brief on Southeast Asian exports, Oxford Economics said, however, that export growth will continue and is also due to pick up. However, as households in advanced economies continue to feel the pinch, they may be less inclined to make major spending decisions. “We expect the boost from the chip upcycle to continue over the coming year, lending a helping hand to overall exports. However, there are few strong tailwinds elsewhere. The usual lags suggest the impact from looser monetary policy will not be massive,” Oxford Economics said. “And despite looking in decent shape, households in advanced economies still look reluctant to spend big. As such, the pickup in Asia exports growth will probably remain modest until the end of 2025,” it added. Oxford Economics estimated that Asian exports grew 0.6 percent on a month-on-month basis. This was mainly driven by the 8.7 percent month-on-month growth of Southeast Asian exports. S “E,” A
PHL returns to global debt mart via dollar bond issue B R J S. A @reine_alberto
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HE Government of the Philippines will be returning to the global debt market this month through the three-tranche benchmarked-sized issuance of US dollar-denominated bonds. The Bureau of the Treasury (BTr) said on Wednesday evening that the government started offering its second external issuance of 5.5-year, 10.5-year and 25-year Securities and Exchange Commission-registered Fixed Rate US Dollar Global Bonds. “Our recent credit rating upgrade and affirmation are powerful endorsements of our robust macroeconomic fundamentals and sound
policy environment. And they came at a very opportune time for this issuance,” Finance Secretary Ralph G. Recto said. The Treasury said the proceeds raised from the bonds are meant for general purposes, such as budget financing support. Meanwhile, the Republic will partially allocate the proceeds of the 25-year Global Bond to assets under the Republic’s Sustainable Finance Framework—its sixth G3 ESG bond offering. The 5.5-year, 10.5-year and 25year dollar bonds will mature in 2030, 2035 and 2049, respectively, according to Moody’s Ratings. The bonds secured a “Baa2” from Moody’s and gained a “BBB” from Fitch Ratings and “BBB+”
FINANCE Secretary Ralph G. Recto: “Our recent credit rating upgrade and affirmation are powerful endorsements of our robust macroeconomic fundamentals and sound policy environment. And they came at a very opportune time for this issuance.”
from S&P Global Ratings. S&P Global explained that the global bonds are long-term benchmarksized unsecured bonds. A benchmark-size offering is worth at least $500 million. S&P Global added that the bonds represent direct, general, unconditional, unsecured and unsubordinated obligations of the Philippines. BNP Paribas, Citigroup, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley, Standard Chartered Bank and UBS are acting as Joint Bookrunners for the transaction, according to the Treasury. Leading the “Joint Sustainability Structuring Banks” are HSBC, S “B,” A
PESO EXCHANGE RATES US 56.2530 ■ JAPAN 0.3908 ■ UK 74.6084 ■ HK 7.2110 ■ SINGAPORE 43.2349 ■ AUSTRALIA 38.2127 ■ SAUDI ARABIA 14.9920 ■ EU 62.9134 ■ KOREA 0.0424 ■ CHINA 7.8966 Source: BSP (August 28, 2024)