Fitch: Shallow rate cut benefits large banks more By Reine Juvierre S. Alberto
A FROM NEW YORK TO THE UNIVERSE: FILIPINAS REPRESENT! The inaugural
Reina Filipina North America pageant was held on January 25, 2025, at the Palladium Times Square in New York City. Organized by Monarch Montage LLC, an accredited Miss Universe Philippines partner, the event crowned 22-year-old biomedical engineer and certified EMT Valerie Claire West (center) as the Grand Winner. Pauline Rowbelle Del Mundo (left), a 32-year-old Global Director at IT Cosmetics, was named First Runner-up, while Amanda Salvador Russo (right), a 20-year-old finance student at Penn State University, placed Second Runner-up. The trio will represent the North American Filipino community at Miss Universe Philippines 2025. TROI SANTOS
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
@reine_alberto
MID expectations of policy rate cuts in the Philippines this year, a shallower reduction could benefit larger banks but offer limited gains for smaller lenders, according to Fitch Ratings. The debt watcher said on Monday it projects policy interest rates to decline in most of Southeast Asia’s large economies in 2025. If the reductions are shallow, some banks could benefit, with larger lenders with stable deposits and diverse funding sources
having a competitive edge. Fitch Ratings expects the Bangko Sentral ng PIlipinas’ (BSP) target reverse repurchase rate (RRP) to settle at 4.75 percent by end-2025, falling by 100 basis points from the current 5.75 percent. The rating agency said if rates are higher than what it initially projects, then Philippine banks will be key beneficiaries. “Our rated banks in these markets have good funding profiles and are in liquid banking systems that can capitalize on yields staying buoyant while keeping deposit rates lean,” Fitch Ratings said. This would position these
banks to enjoy modestly higher net interest margins (NIM) compared to Fitch Ratings’ base case, it added. However, smaller Philippine banks may be at a slight disadvantage, as their weaker competitive position in attracting deposits and lending opportunities tends to constrain their NIM, Fitch Ratings added.
Tariff context
MEANWHILE, prospective United States tariff hikes and rising inflation risks may prompt the Federal Reserve to keep interest rates higher for longer. Fitch Ratings said this would strengthen the dollar relative
to other currencies in 2025, increasing the risks that policy rate-cutting cycles in Southeast Asia will be shallower than initially expected. A shallower rate-cutting cycle—or slight rate increases— would have a limited impact on Southeast Asian banks’ asset quality, Fitch said. However, banks’ credit costs could become more vulnerable if external shocks disrupt economic growth, it added. Still, low inflation in the region gives policymakers some flexibility to allow weaker currencies without breaching inflation targets, supporting their rate-setting autonomy, Fitch noted.
BusinessMirror
www.businessmirror.com.ph
A broader look at today’s business Tuesday, January 28, 2025 Vol. 20 No. 108
EJAP JOURNALISM AWARDS
BUSINESS NEWS SOURCE OF THE YEAR
(2017, 2018, 2019, 2020, 2021) DEPARTMENT OF SCIENCE AND TECHNOLOGY
2018 BANTOG MEDIA AWARDS
P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK
VIA MIC, PHL GOVT GETS n
A 20% STAKE IN NGCP
DOF: Global tech,
By Samuel P. Medenilla and Lenie Lectura
W
financial giants eye AI in PHL
ITH the signing of a new agreement between staterun Maharlika Investment Corporation (MIC) and Synergy Grid and Development Philippines Inc. (SGP) on Monday, the government has now secured a 20-percent stake in the National Grid Corporation of the Philippines (NGCP). President Ferdinand Marcos Jr. lauded the signing of the agreement, which gives the government minority control in NGCP and SGP, in Malacañang. The deal was signed by MIC President and Chief Executive Officer Rafael D. Consing Jr. and SGP Chairman Henry T. Sy Jr. “Congratulations, everyone. I know it wasn’t easy. I think, in the end, we found a good solution to everyone’s concern,” Marcos said at the signing event. Under their new agreement with SGP, Consing said they will be given two seats each in the SGP and NGCP boards, which will grant the government a say in their decisions. “Once the acquisition is completed, we shall be entitled to two out of nine seats in the SGP board, after the total seats are increased from seven to nine. At NGCP, the government gains representation through two out of 15 board seats, following an increase in the total seats from 10 to 15,” Consing explained. As of press time, Malacañang has yet to disclose how much MIC spent to complete its transaction with SGP. However, Consing stressed the MIC’s “maiden investment” is necessary to “safeguard the nation’s power See “MIC” A2
expansion plans By Reine Juvierre S. Alberto
I
FROM DELAYS TO DELIVERY: BALLOTS ROLLING (From left) Comelec Commissioner Rey E. Bulay, National Printing Office Director Atty. Revsee A. Escobedo, Comelec Chairman George M. Garcia, and Comelec Commissioner Ernesto Ferdinand P. Maceda Jr. inspect the printing machines and official ballots of MIRU Systems and the NPO for the 2025 National and Local Elections. The ballot printing resumed on Monday, January 27, 2025, at the NPO in Quezon City, following delays caused by last-minute adjustments and candidate withdrawals. Comelec aims to complete ballot printing by April 14. NONOY LACZA
NVESTORS from global tech and financial giants expressed strong interest in expanding their presence in the Philippines to leverage artificial intelligence for enhancing digital finance and healthcare, according to the Department of Finance (DOF). In a statement, the DOF said Finance Secretary Ralph G. Recto held one-on-one meetings with senior executives with keen interests in collaborating with the Philippines during the World Economic Forum (WEF) held in Davos, Switzerland, last week. As such, European bank ING is planning to launch generative AI applications in the Philippines, making it the next country after the Netherlands and Germany to host live AI operations. The bank, which employs 6,000 workers in its Philippine hub out of its 14,000 global workforce, highlighted the country’s strategic importance in its global operations. US-based cryptocurrency firm Coinbase expressed strong interest in expanding in the Philippines, citing the country’s growing digital See “DOF,” A2
PEZA-APPROVED INVESTMENTS SURGE TO P30B By Andrea E. San Juan
I
@andreasanjuan
NVESTMENTS greenlighted by the Philippine Economic Zone Authority (Peza) in the first month of 2025 surged to P30.156 billion, up 1,263 percent from the P2.21-billion investments approved in January 2024. In a statement on Monday, the investment promotion agency attached to the Department of Trade and Industry (DTI) said these investments come as the Peza Board approved 12 new and expansion projects expected to generate $32.177 million in exports and
create 3,270 direct jobs. These projects, Peza said, span multiple sectors, including five export manufacturing ventures, four IT and Business Process Management (IT-BPM) projects, and three domestic market projects. The investment promotion agency said these projects are “strategically” located across Metro Manila, Calabarzon, Central Luzon and Central Visayas. As to the source of investments, Peza said investments from United Kingdom, China, the Netherlands, Australia and Malaysia have surged, with the United Kingdom emerging as Peza’s leading investor for January.
According to Peza, among the approved projects, two “major ventures” account for P29.014 billion in investments. “One standout project involves a domestic market enterprise investing nearly P28 billion in its beverage production and distribution facility in Tarlac City,” added the agency tasked to promote and establish economic zones in the country. Another significant project, focused on energy storage systems, is investing more than P1.2 billion in the Mactan Economic Zone (MEZ), said Peza. For his part, Peza Director General Tereso O. Panga said this
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
777 KORPHIL HOLDINGS CORP. Unit 2604, 26th Floor Ibp Tower, Julia Vargas Ave. Cor. Jade Drive, Ortigas Center, San Antonio, City Of Pasig
KIM, BEOMJUN Customer Service Representative 1.
Brief Job Description: Perform customer support via phone, chat and email both in English and their national language.
Basic Qualification: Any nationality who can speak and write Korean language fluently. Salary Range: Php 30,000 - Php 59,999
See “Investments,” A2
See “dole ncr” on A6-A7
PESO EXCHANGE RATES n US 58.4590 n JAPAN 0.3754 n UK 72.9276 n HK 7.5063 n CHINA 8.0767 n SINGAPORE 43.4219 n AUSTRALIA 36.8233 n EU 61.2592 n KOREA 0.0409 n SAUDI ARABIA 15.5895 Source: BSP (January 27, 2025)