IPAs make investment pitches to Swiss investors By Andrea E. San Juan
T
HE Philippines’s Investment Promotion Agencies (IPAs) have made their investment pitches in the Joint Economic Commission (JEC) in Switzerland to Swiss investors particularly in the fintech, blockchain and high-tech machinery areas, among others. According to a Facebook post published by PEZA Officer-in-Charge Tereso O. Panga on Monday, the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA), with the assistance of Philippine Trade and Investment Center (PTIC)-Geneva Director Raymond Batac, have pitched investments in the JEC forum, which was attended
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by Swiss business chambers as well as prospective and existing Swiss investors in the Philippines. The sectors include fintech and blockchain, high-tech machinery (i.e., turbo-charging equipment used in power generation, transport and manufacturing), tobacco processing, and soil erosion technology. In the separate B2B meetings, Panga said BOI and PEZA assisted some firms with their “specific operational concerns and investment entry/expansion” requirements. These firms include Glencore on copper cathodes; Sateco on automotive sensors for controls and switches; OVD Kinegram on fintech and blockchain; Naturloop on design and production of coco fiber boards
from waste coconut husks; and Impact Acoustic on design and production of acoustic lighting, ceiling and wall panel boards from recycled PET bottle fibers. Naturloop and Impact Acoustic both employ “pioneering” technologies utilizing local materials that will benefit the Philippines’s farmers and micro, small, and medium enterprises (MSMEs) in collecting and processing of waste materials, said Panga. The PEZA OIC unveiled more benefits that Filipino farmers and small merchants can utilize. In fact, he said, as an alternative to “heavily” imported wood and composite materials for various applications, their products can be utilized for
instance for furniture, wall and ceiling panels. Moreover, Panga noted, “the same can be used for our public school and housing projects as they are cheaper, termite-free and more durable.” BOI Managing head Ceferino S. Rodolfo led the Philippine delegation in the JEC bilateral talks with the Swiss government on trade and investments. The Swiss side was represented by Ambassador Erwin Bollinger, Head of Bilateral Economic Relations Division and Federal Council Delegate for Trade Agreements of State Secretariat for Economic Affairs (SECO) ; and Minister Karin Buechel, Head of Division Free Trade Agreements of SECO.
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Tuesday, January 17, 2023 Vol. 18 No. 94
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REMITTANCES AT 5-MO n
LOW; GLOBAL RISKS CITED
DIFFERENT prices of milled rice are on display at a retail store in Las Piñas City. Prices of rice are seen to rise further in 2023 after a P2 increase in December. Prices of food staples like rice and vegetables have put the Senate at loggerheads with the Department of Agriculture, which it called to task again on Monday over the soaring prices of onions and the easy resort to importations. NONIE REYES
C
By Cai U. Ordinario
@caiordinario
ASH remittances from overseas Filipinos only reached $2.644 billion in November 2022, the lowest in five months, according to data released by the Bangko Sentral ng Pilipinas (BSP). Data from the BSP showed this was the lowest since May 2022 when remittances reached $2.425 billion. Rizal Commercial Banking Corporation (RCBC) Chief Economist Michael L. Ricafort said this may be due to the peso-dollar exchange rate as well as high inflation in many host countries. “The slowdown may have to do with the relatively higher US dollar/peso exchange rate compared to early 2022,” Ricafort said in the Hexagon Perspective. “Furthermore, higher prices/ inflation also in host countries of OFWs could have also increased the cost of living of OFWs abroad,
thereby partly reducing the amount sent to the country,” he added. The country’s low remittance inflow may continue as headwinds such as the Russia-Ukraine war and the expected recession this year may slow deployment, thus reducing remittances. Institute for Migration and Development Issues (IMDI) Executive Director Jeremaiah M. Opiniano said this is among the concerns surrounding 2023. He said labor markets abroad are not yet fully open for foreign workers and may take some more time to get back to prepandemic international migration trends. See “Remittances,” A2
PESO EXCHANGE RATES n US 55.0100
AS THE RICH MEET IN DAVOS, REPORT FLAGS INEQUALITY By Jonathan L. Mayuga @jonlmayuga
A
NEW study published by Oxfam International revealed that the richest 1 percent grabbed nearly twothirds of all new wealth worth $42 trillion created globally since 2020. This is almost twice as much money as the bottom 99 percent of the world’s population has. The report “Survival of the Richest” was published on the opening day of the World Economic Forum in Davos, Switzerland. The report suggests that while the world’s elites are gathering at a Swiss ski resort, extreme wealth and extreme poverty have increased simultaneously for the first time in 25 years.
Key takeaways of the study revealed that, for example, 9 richest Filipinos have more wealth than half of Filipinos. Also, billionaire fortunes globally are increasing by $2.7 billion a day even as at least 1.7 billion workers now live in countries where inflation is outpacing wages. According to the study, the richest 1 percent grabbed nearly two-thirds of all new wealth worth $42 trillion created globally since 2020, almost twice as much money as the bottom 99 percent of the world’s population. During the past decade, the richest 1 percent had captured around half of all new wealth. “While ordinary people are making daily sacrifices on essentials like food, the super-rich See “Rich meet,” A2
Martin upbeat about MIF’s Davos splash, but is warned By Jovee Marie N. dela Cruz @joveemarie
& Butch Fernandez @butchfBM
S
PEAKER Ferdinand Martin G. Romualdez on Monday expressed confidence President Ferdinand “Bongbong” R. Marcos Jr. could successfully introduce the country’s sovereign wealth fund and promote the Philippines as an investment hub at the World Economic Forum (WEF) in Davos, Switzerland. However, his enthusiasm was met with a warning from Senate Deputy Minority Leader Risa Hontiveros, who said a public presentation was premature as the law creating the Maharlika Investment Fund had yet to be passed. “I’m confident he would do the same in the WEF, particularly in introducing the Maharlika Investment Fund to the global stage and in helping our local business leaders
explore investment opportunities for the Philippines,” said Romualdez in a statement. The Speaker is part of Marcos’s official delegation to the WEF. Romualdez was instrumental in arranging the meeting between President Marcos and WEF founder Dr. Klauss Schwab at the sidelines of the Association of Southeast Asean Nations (ASEAN) Summits held in Cambodia, where the latter invited the President to the Davos meet. In airing caution on Monday against a public presentation, especially in a high-profile global stage, Hontiveros said,“a soft launch is premature.” She added, “There is nothing to present...“Isn’t it jumping the gun to be talking about it in front of world economic leaders?” “The discussions on the matter are hilaw [raw] and the concept is full of holes.” See “Martin,” A2
n JAPAN 0.4303 n UK 67.3047 n HK 7.0443 n CHINA 8.2105 n SINGAPORE 41.7027 n AUSTRALIA 38.3310 n EU 59.5868 n KOREA 0.0444 n SAUDI ARABIA 14.6471
Source: BSP (January 16, 2023)