MIC, CP Group eye $1-B capital via equity fund By Reine Juvierre S. Alberto
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THAILAND TO DISCUSS TARIFF RISKS, CONSIDER BOOSTING US IMPORTS
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TATE-RUN Maharlika Investment Corporation (MIC) and Charoen Pokphand Group Co., Ltd. (CP Group) are looking to establish a private equity fund to raise up to $1 billion (roughly P58 billion) in capital. In a statement, the MIC said it entered into a partnership with CP Group to drive investments in agriculture, digital innovation, and renewable energy in the Philippines. A memorandum of understanding (MOU) was signed by MIC President and CEO Rafael D. Consing Jr. and CP Group Chairman Soopakij Chearavanont at Malacañan Palace on Saturday, with President Ferdinand R. Marcos Jr. witnessing the event.
“This partnership will lay the groundwork for a multisectoral investment initiative that will drive long-term economic growth while reinforcing the Philippines’ position as a premier investment destination,” Consing was quoted in a statement as saying. The fund’s key investment areas include agri-food modernization by strengthening food security and agricultural value chains, digital and e-commerce expansion through digital transformation and fintech adoption and scaling up renewable energy and green initiatives. A steering committee will oversee project selection and fund structuring, with the first capital close expected within the next nine to 12
months, according to the MIC. CP Group, founded in 1921, is one of Asia’s largest multinational conglomerates with operations in more than 30 countries with a focus on agriculture, food production and retail. The MIC is the country’s sovereign wealth fund, established under Republic Act No. 11954, mandated to generate sustainable long-term returns that support national economic priorities. Consing said the MIC aims to finalize three to four investment deals this year, with energy distribution projects in Mindoro and Palawan as among their priority initiatives. (See: https://businessmirror.com. ph/2025/01/29/3-to-4-investment-deals-for-2025-eyed-by-ma-
harlika-investment-corporation/). The MIC made its first investment by acquiring a 20-percent stake in the National Grid Corporation of the Philippines (NGCP) in January this year, after the Maharlika Investment Fund (MIF) was created in July 2023. The MIC is the sole vehicle for mobilizing and utilizing the MIF for investments in transactions aimed at generating optimal returns on investments. It shall have an authorized capital stock of P500 billion, of which the P125-billion seed capital will come from state-run lenders Land Bank of the Philippines and the Development Bank of the Philippines. The two state-run lenders remitted P75 billion collectively.
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Tuesday, February 11, 2025 Vol. 20 No. 122
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OVER INFLATION WOES’ FDI down 19.8% in Nov, but up 4.4% over 11 mos
By Cai U. Ordinario @caiordinario
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HE Bangko Sentral ng Pilipinas (BSP) is expected to prioritize boosting economic growth by easing monetary policy rates this week, according to Sumitomo Mitsui Banking Corporation (SMBC). The Singapore-based SMBC said the country’s weaker than expected economic growth in the last quarter of 2024 and the full year would be enough impetus for the BSP to reduce policy rates further. In the fourth quarter, the country’s GDP growth slowed to 5.2 percent, bringing the economy’s average growth rate to 5.6 percent in the full year of 2024. “In Asia, BSP is likely to continue cutting rates on February 13 to boost economic growth. Asian currencies are expected to remain range bound this week as market participants maintain a wait-and-see stance due to high uncertainties over US policies,” SMBC said. However, Moody’s Analytics expects the BSP to maintain key policy rates at 5.75 percent. Nonetheless, the think tank did not explain its forecast in its latest brief. Meanwhile, BMI, Fitch Solutions Company, said one of the major drivers of economic growth in the country, household spending, is expected to post a growth of 5.3 percent this year. In real terms, BMI said, this means household spending too will grow to P13.2 trillion, using 2010 prices, in 2025. “Spending will remain influenced by the elevated inflationary pressures seen over 2025 as well as currently high debt levels, along with related debt servicing costs,” BMI said. “A tight labor market will support spending, as real wage growth returns to positive territory, which will support purchasing power over the year,” it added. Inflation is expected to pick up See “BSP,” A2
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ONION HIKE SPARKS TEARS AS IMPORTS LOOM The price of onions has surged again, according to vegetable vendors in Las Piñas. To prevent a repeat of the 2022 crisis, the Department of Agriculture (DA) has approved the importation of 3,000 metric tons of red onions and 1,000 metric tons of white onions, expected to arrive within two weeks. “This importation ensures we have sufficient buffer stocks while awaiting fresh harvests. We will not risk a potential shortage that unscrupulous traders could exploit to inflate prices,” said the DA chief. However, local onion farmers are questioning the timing of the imports, which coincide with the harvest season. NONIE REYES
OREIGN investments that flowed into the country declined in November 2024, posting their lowest level since September last year, according to the Bangko Sentral ng Pilipinas (BSP). Based on the preliminary data of the BSP, foreign direct investments contracted 19.8 percent to $901 million in November 2024, the lowest since the $368 million posted in September 2024. Nonetheless, BSP said, the cumulative FDI level increased by 4.4 percent to $8.6 billion in January-November 2024 from $8.2 billion in January-November 2023. “FDI includes investments by a nonresident direct investor in a resident enterprise, where the equity capital in the latter is at least 10 percent,” the BSP said. “It also includes investments made by a nonresident subsidiary or associate in its resident direct investor. FDI can be in the form of equity capital, reinvestment of earnings, and borrowings,” it added. The BSP said nonresidents’ net investments in debt instruments contracted by 17.9 percent to See “FDI,” A2
STORMS TO HIT AGRI, CONSTRUCTION MOST IN ‘25 By Bless Aubrey Ogerio
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@blessogerio
OBS in agriculture and construction are expected to be the most challenged by weather disturbances this year, with severe storms and heavy rainfall threatening both work stability and productivity, the government’s socioeconomic planning body said on Monday. According to the National Economic and Development Authority (NEDA), these sectors are especially vulnerable because agriculture depends heavily on good weather for planting and harvesting, while construction workers often face delays when
weather conditions aren’t ideal. “As an example, if it’s rainy, they can’t plant or harvest. In construction, workers can’t continue building if the weather’s bad,” said NEDA Undersecretary Rosemarie Edillon in Filipino during a press briefing at Malacañan Palace in response to questions from BusinessMirror. She also noted that temporary increases in unemployment in 2024 were linked to weather disturbances. “For 2024, we saw some temporary rises in unemployment, and they were actually related to weather disruptions,” she explained. On February 6, National Stat-
istician Claire Dennis Mapa reported that the unemployment rate of 3.8 percent and underemployment rate of 11.9 percent in 2024 were the lowest recorded since 2005, marking a historic low. However, the number of employed Filipinos dropped by 339,000 in December 2024, with 50.19 million people employed, compared to 50.52 million in December 2023. (See: https://businessmirror.com. ph/2025/02/06/jobless-rateimproves-in-2024/) The Philippine Statistics Authority further showed that the services sector led employment See “Storms,” A2
NOTICE OF FILING OF APPLICATION/S FOR ALIEN EMPLOYMENT PERMIT/S (AEP/S) Notice is hereby given that the following companies/Employers have filed with this Regional Office application/s for Alien Employment Permit/s: ESTABLISHMENT / ADDRESS No.
NAME OF FOREIGN NATIONAL , POSITION AND BRIEF DESCRIPTION
QUALIFICATION AND SALARY RANGE
ACCIONA CONSTRUCTION PHILIPPINES INC. 23/f The Enterprise Center Tower 2, Ayala Ave. Cor. Paseo De Roxas, San Lorenzo, City Of Makati
1.
GIL CACHO, ABEL Site Coordinator Brief Job Description: Coordinate and manage subcontract works on site.
Basic Qualification: Bachelor’s degree, preferably in engineering or construction management, at least 3 yrs experience in the construction industry, specifically in client and partner relationship management & partnersubcontractor analysis. Salary Range: Php 150,000 - Php 499,999
See “dole ncr” on A6-A7
PESO EXCHANGE RATES n US 58.0140 n JAPAN 0.3836 n UK 71.9490 n HK 7.4470 n CHINA 7.9527 n SINGAPORE 42.8337 n AUSTRALIA 36.1659 n EU 59.7080 n KOREA 0.0399 n SAUDI ARABIA 15.4683 Source: BSP (February 10, 2025)