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Saturday, January 11, 2025 Vol. 20 No. 90
P25.00 nationwide | 12 pages | 7 DAYS A WEEK
By Cai U. Ordinario
HE country’s total foreign direct investment (FDI) inflows recorded an eight-month high in October, according to the Bangko Sentral ng Pilipinas (BSP). Based on the data, FDI net inflows grew 50.2 percent to $1.02 billion in October 2024 from $681 million in October 2023. This is the highest since the $1.367 billion posted in February 2024. In terms of growth, this was the fastest since January 2024 when FDI grew 79.1 percent. “FDI includes investment by a nonresident direct investor in a resident enterprise, where the equity capital in the latter is at least 10 percent,” BSP said. “It also includes investment 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. BSP data showed that with this FDI growth in October 2024, the January-October 2024 net inflows reached $7.7 billion. This represented a growth of 8.2 percent from the $7.1 billion net inflows in January-October 2023. Nomura analysts Euben Paracuelles and Nabila Amani said public investment spending will remain a major growth engine for the Philippines and could help crowd in more investments, including FDIs. They noted that there is a government push for more progress on infrastructure projects with an added impetus from the mid-term elections on May 12, 2025. “Sustained infrastructure implementation should, in our view, start to crowd in private investment spending when borrowing costs are declining and BSP is easing monetary policy,” they said. “However, strong external headwinds will likely provide some offset due to Trump’s policy proposals.” The data showed the increase in net FDI inflows was due to the
Equity capital placements in October 2024 came largely from Japan, the United States, and Singapore, with investments directed primarily to the manufacturing, real estate, and construction industries. KEY STATS
October 2024: $1.02 Billion in FDI Inflows (+50.2%) n
n January-October 2024: $7.7 Billion (+8.2% from 2023) n Increase in Nonresident Net Investments in Debt Instruments: +60.7% to $839 Million n Net Investments in Equity Capital: +34.1% to $100 Million
60.7-percent growth in nonresidents’ net investments in debt instruments to $839 million, from $522 million in the same period in 2023. The data also showed that nonresidents’ net investments in equity capital (other than reinvestment of earnings) rose by 34.1 percent to $100 million from $74 million. However, a contraction in nonresidents’ reinvestment of earnings moderated the growth of the country’s FDI inflows. The data showed a decline of 0.9 percent in nonresident’s rein-
FALL-ING IN LOVE WITH DARANAK Local tourists unwind and refresh in the cool, crystal-clear waters of Daranak Falls in Tanay, Rizal. Known for its picturesque scenery and tranquil atmosphere, the falls is a popular destination for nature lovers looking to escape the hustle and bustle of daily life. Tanay, often hailed as the “Home of Nature and Adventure Destinations,” offers this hidden gem as part of its diverse array of outdoor escapes. BERNARD TESTA vestment of earnings to $83 million from $84 million in October 2023. “Equity capital placements in October 2024 came largely from Japan, the United States, and Singapore. These investments were directed primarily to the manufacturing, real estate, and construction industries,” the BSP said.
Different from other agencies
THE BSP noted that its FDI statistics are different from the investment data of other government sources. BSP FDI covers actual investment inflows. In contrast, the approved for-
eign investments data published by the Philippine Statistics Authority (PSA) are sourced from Investment Promotion Agencies (IPAs). These represent investment commitments, BSP said, which may not necessarily be fully realized in a given period. The PSA data are also not based on the 10-percent foreign ownership criterion under BPM6 and the BSP’s FDI data are presented in net terms (i.e., equity capital placements less withdrawals). The PSA’s foreign investment data, however, does not account for equity withdrawals.
Maximum SRP for imported rice starts Jan 20 By Ada Pelonia
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HE Department of Agriculture (DA) will impose a maximum suggested retail price of P58 per kilo for imported rice starting January 20. Agriculture Secretary Francisco Tiu Laurel Jr. said the MSRP aims to have a balance between business sustainability and the welfare of consumers and farmers. “We must ensure the price of rice is fair and affordable even as we make sure that the rice industry remains profitable. We cannot allow the greed of a few to jeopardize the well-being of an entire nation,” Laurel said in a statement. He noted that the MSRP will be initially implemented in Metro Manila. It will be reviewed every month to take into account several factors, including the global price of the grain. “We think that if the current direction of global prices hold, the MSRP will be lower after the review,” Laurel said. For her part, Department of Trade and Industry (DTI) Secretary Cristina Roque reaffirmed the
ASSORTED rice varieties for sale at a grocery in Antipolo, ahead of the Department of Agriculture’s implementation of a maximum suggested retail price of P58 per kilo, effective January 20. ED DAVAD
agency’s support for the DA’s push to lower rice prices. “The DTI fully supports the DA in all its initiatives. We will help in the monitoring and enforcement of prices set by the DA, “ Roque said. The agency noted that it has held discussions with stakeholders
and key government offices to address persistently high rice prices. “Based on our calculations, using data and profit margins provided by importers and retailers, imported 5 percent broken rice should not exceed P58 per kilo. For rice with a higher percentage of
broken grains, the price should be much lower,” Laurel explained. Meanwhile, the agency said Laurel ordered Food Terminals Inc. (FTI), a government corporation under the DA, to begin selling rice through Kadiwa ng Pangulo centers and kiosks. Among the rice options are 5 percent broken sold at P45 per kilo, 25 percent broken at P40 per kilo, and 100 percent broken, also known as Sulit Rice, at P36 per kilo. Furthermore, the agriculture chief said rice that has been stored by the National Food Authority for at least two months will be available for resale to local government units in Metro Manila at P38 per kilo. “This initiative will help the NFA clear its warehouses in preparation for the upcoming harvest season,” Laurel said. “Our warehouses are filled to capacity, and I have directed NFA administrator Larry Lacson to have the rice milled immediately so we can saturate the market with fairer-priced rice as we make space for the palay we plan to procure at a minimum of P23 per kilo for clean and dry this season,” he added.
BANK LENDING GROWS 11.1% IN NOV, NEARLY A 2-YR HIGH By Cai U. Ordinario
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HE Bangko Sentral ng Pilipinas (BSP) disclosed on Friday that bank lending growth recorded nearly a two-year high in November 2024. Based on the data, outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the BSP, grew 11.1 percent year-on-year, the fastest since the 13.7 percent posted in December 2022. The data showed bank lending grew 10.6 percent in October 2024 while it posted a growth of 7 percent in November 2023. On a
FASTEST GROWING SECTORS
Professional Services (+48.4%) Transportation (+28.6%) n Arts (+28.1%) n Mining (+23.8%) n n
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PESO EXCHANGE RATES n US 58.5090 n JAPAN 0.3700 n UK 72.0246 n HK 7.5180 n CHINA 7.9797 n SINGAPORE 42.7885 n AUSTRALIA 36.2346 n EU 60.2701 n KOREA 0.0401 n SAUDI ARABIA 15.5853 Source: BSP (January 10, 2025)