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BusinessMirror
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A broader look at today’s business n
Monday, July 29, 2024 Vol. 19 No. 286
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‘STORM FARM DAMAGE COULD FUEL INFLATION’ By Reine Juvierre S. Alberto
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AMAGE caused by Typhoon Carina and the intensified Southwest Monsoon (Habagat) could cause a temporary uptick in inflation, according to local economists.
Ateneo de Manila University (ADMU) economist Leonardo Lanzona and Rizal Commercial Banking Corporation (RCBC) Chief Economist Michael L. Ricafort told the BusinessMirror inflation may accelerate temporarily from July to August this year. Lanzona said if production remains the same or declines, which is more likely, then inflation may increase temporarily and normalcy can be restored within months. “Realistically, there may be some temporary pickup in prices in hard-hit areas until logistics normalize, also in view of some damage on agriculture that could lead to some temporary spike in produce prices,” Ricafort said. However, Ricafort said the price freeze on basic goods implemented in Metro Manila after the declaration of the state of calamity would help temper inflation, which has been a consistent pattern seen during storm season. Asked whether the temporary uptick in inflation could breach the government’s target of 2 to 4 percent, Lanzona said, “that would be the case,” while Ricafort said inflation will stay within target. Inflation slowed to 3.7 percent in June 2024 due to lower energy prices, according to the Philippine Statistics Authority. However, Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. said “it’s not yet time to declare victory” as there is still a 50-50 chance that inflation could breach 4 percent in July.
‘Rate cut to aggravate inflation’
LANZONA said inflation can be aggravated if the prospective reduction of key policy rates this coming August is implemented. See “Storm,” A2
For ignoring due process, SC junks NTC orders to telcos By Joel R. San Juan @jrsanjuan1573
STRONG START FOR TEAM PHILIPPINES Carlos Edriel Yulo soars into three finals in the floor exercise, vault, and all-around events, captivating fans with his exceptional talent and
determination. Meanwhile, Filipina fencer Sam Catantan, despite persistent knee pains, displayed unstoppable grit to advance to the Round of 32 in the women’s foil individual after a thrilling 15-13 victory over Brazil’s Mariana Pistoia; she now prepares to face top seed Arianna Errigo of Italy. Adding to the triumphs, Joanie Delgaco dominated the repechage heat on the Seine, securing a spot in the quarterfinals of the women’s single sculls. AP
AYALA SPENDING P7.1B TO ADD ROOMS, RENOVATE HOTELS By Ma. Stella F. Arnaldo @akosistellaBM Special to the BusinessMirror
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YALA Land Inc. (ALI) is allocating P7.1 billion in capital expenditures to reinvent its hotels and resorts over the next five years, covering four El Nido resorts and 10 hotels. This will expand the room inventory of its hotels and resorts to 8,000 nationwide, by 2028, said the company in a recent news statement announcing the appointment of veteran hotelier George Aquino as president and chief executive officer of Ayala Land Hospitality, formerly Ayala Land Hotels and Resorts Corp. The company said Aquino is currently overseeing the renovation of the 51-room Lagen Resort, under the El Nido Resorts Group, in Palawan. “The renovation of Lagen Resort is part of Ayala Land Hospitality’s broader strategy to strengthen its presence in the hospitality sector and provide guests
with exceptional experiences that cater to evolving preferences and expectations. In addition, Aquino will also lead the renovation of existing properties to ensure they meet current global standards,” said ALI. Lagen Resort temporarily closed last June 1, for a major upgrade of its facilities and amenities, “aimed at transforming the property into a brand-new luxury resort” that will reopen in 2025, said ALI. Ayala Land Hospitality owns and manages popular resorts in Pangulasian and Miniloc islands, which with Lagen, form a trio of eco-sanctuary resorts in Bacuit Bay, recognized for their commitment to sustainability “and their ability to provide guests with unforgettable experiences amid the natural beauty of the region,” ALI added. Ayala Land Hospitality also owns and manages Huni Resort in El Nido and Sicogon Island; and Seda Hotels, which currently has 12 properties around the Philippines. In addition, the firm has under See “Ayala,” A2
SPECIAL PHL 100 YEARS OF OLYMPIC PARTICIPATION PINS
Philippine Olympic Committee (POC) president Abraham “Bambol” Tolentino presents a special and limited-edition “Philippines 100 years of Olympics Participation” pin to members of the Solomon Islands delegation at the National Olympic Committee headquarters at the Hyatt Regency in Paris on Sunday. Tolentino personally designed the pins, which were custom-manufactured in Tagaytay City, to celebrate the country’s centennial participation in the Olympics in Paris 2024.
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HE Supreme Court has reminded the National Telecommunications Commission (NTC) to observe due process in exercising its mandate to safeguard consumers from exorbitant charges of telecommunications companies. “Due process applies just as well in the administrative setting, albeit less stringent and often applied liberally. Basic procedural rights, such as the opportunity to explain one's side or seek reconsideration, are so fundamental that they cannot be set aside to implement supposedly fair and reasonable rates,” the SC said in a 28-page decision penned by Associate Justice Marvic Leonen. The SC upheld the Court of Appeals’ ruling of 2010 enjoining the NTC from its orders issued against telco companies in connection with Memorandum Circular No. 05-072009 or the Guidelines on Unit of Billing of Mobile Voice Service issued on July 23, 2009. The NTC circular imposes a sixsecond-per-pulse unit as the default billing method for voice calls. Before the NTC memorandum circular, telcos adopted the one-minute minimum billing scheme. On December 9, 2009, the NTC issued show cause orders against telco companies Globe and lnnove Communications, Smart Communications, Connectivity Unlimited Resource See “SC,” A2
PESO EXCHANGE RATES n US 58.3890 n JAPAN 0.3794 n UK 75.0649 n HK 7.4797 n CHINA 8.0592 n SINGAPORE 43.4701 n AUSTRALIA 38.1689 n EU 63.3345 n SAUDI ARABIA 15.5646 Source: BSP (July 26, 2024)