Report tackles BSP sustainability
T
‘PRISM PARK’ SM Aura recently opened the Prism Park, a shimmering and futuristic playpark, to launch its “Own Your Beautiful” campaign. Just as a prism refracts light into a mesmerizing spectrum of colors and shapes, beauty is the same—in the myriad details, and altogether. The Prism Park features a dazzling dichroic structure filled with interactive color-changing foot pads, inflatable balls, seesaws and swings, all colorfully lit and ready for mallgoers to play with and enjoy. At night, the Prism Park transforms into a glowing beacon, bringing a completely different experience, yet equally as beautiful. The Prism Park is located on Level 5, Skypark, SM Aura.
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
URNING old banknotes into alternative energy sources is just one of the sustainability efforts of the Bangko Sentral ng Pilipinas (BSP). In its maiden Sustainability Report, the BSP outlined its progress in advancing the sustainability agenda in the Philippine financial system toward creating more sustainable, inclusive, and resilient societies and economies. The BSP said demonetized and mutilated banknotes undergo a shedding process that allows these to be converted into briquettes that can be used as alternative fuel source for biomass gasification facilities. “The use of briquetted banknotes as an alternative fuel source instead
of outright burning reduces the need to cut down trees, thereby contributing to a reduced carbon footprint,” the report stated. BSP said its regional office in Greater Manila generated a total of 1.17 million kilograms of briquetted banknotes that were properly disposed and re-used as an alternative fuel source. The central bank also entered into a contract with a service provider that will use the briquetted retired banknotes, banknotes securities waste, and other non-briquetted security waste as alternative fuel for cement manufacturing, instead of using coal and other types of fuel fossils. “Buyers of briquetted banknotes
are required to submit an Environmental Compliance Certificate [ECC] issued by the DENR [Department of Environment and Natural Resources],” the report stated. In terms of old and unfit coins, the BSP said it uses a coin defacement machine prior to disposal. This prevents the risk of recirculation and maintains the integrity of the Philippine currency. BSP said buyers of defaced coins are also required to submit ECC requirements. The BSP has defaced a total of 597 metric tons of counterfeit, unfit, mutilated, and demonetized (CUMD) coins since the start of the coin defacement operation in 2021.
BusinessMirror
w
n
Tuesday, July 4, 2023 Vol. 18 No. 260
See “Report,” A2
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 26 pages |
GLOBAL HEADWINDS COULD HIT MANUFACTURERS’ OUTLOOK
PHL factory performance still weak
T
By Cai U. Ordinario
@caiordinario
HE country’s manufacturing sector continued its lackluster performance in June, according to Standard & Poor’s Purchasing Managers’ Index (PMI).
The report stated the country’s PMI remained at 50.9, marking the 7th consecutive month in this level and the weakest improvement in business conditions since July 2020. The outlook may still be optimistic, but S&P said global headwinds remain the biggest threat to manufacturing growth in the next 12 months. “Growth across the Filipino manufacturing factor slowed as the June PMI index reading signaled the weakest improvement in the health of the sector since July 2020,” Maryam Baluch, Economist at S&P Global Market Intelligence, said. “Going forward, the sector remains optimistic of growth in the coming 12 months. However, global headwinds could dampen the outlook for manufacturers in the Philippines,” she added.
The report stated that the manufacturing sector still grew due to higher production and factory orders but there were factories that reported slowing demand for certain products. The slowing inflation also affected the growth of manufacturing output from the value perspective. The slower inflation prompted the Bangko Sentral ng Pilipinas to maintain policy rates for the second time in June. “The muted headline figure reflected softer rates of expansion across both output and new orders, while manufacturing employment registered a fresh reduction,” Baluch said. “Meanwhile, rates of input price and output charge inflation slowed and were the softest recorded in over two-and-a-half years,” she added. See “PHL,” A2
NEW BSP CHIEF: FLUENT IN FILIPINO, BASKETBALL–SAVVY
T
HE new Bangko Sentral ng Pilipinas (BSP) governor is as Filipino as they come from his use of the mother tongue to making basketball references in his first official speech at the central bank. On Monday, Eli M. Remolona Jr. officially took over the reins of the central bank. He is the 7th BSP Governor since the enactment of the New Central Bank Act in 1993. Remolona spent 14 years at the Federal Reserve Bank of New York and 19 years at the Bank for International Settlements in Switzerland and Hong Kong. He also taught in the United States and Malaysia, and earned his PhD in economics from Stanford University. In his remarks on taking the helm of central bank, Remolona said he would focus on two things: continuity of the good done in the past; and bettering the work. “Sa unang araw ko naman bilang
BSP Governor, may dalawang puntos akong nais ibahagi. Ang unang puntos po ay PAGPAPATULOY. Together we must build on the progress we have already made,” Remolona said. “Ang pangalawang puntos po ay PAGPAPABUTI. I know we’re all eager to work even harder. I know we have what it takes to do even better—especially if we work together,” he added. Remolona said the banking system has remained strong and the country’s capital and liquidity are “more than adequate.” He said this has made Philippine banks a source of strength for the economy as it recovered from the pandemic. This good performance, Remolona said, should continue but the BSP should also strive to do better. To illustrate his point, he recalled the recent National Basketball Association (NBA) finals which was won by the Denver Nuggets. See “BSP Chief,” A2
GUARDIANS OF THE SKY President Ferdinand R. Marcos Jr. witnesses the Philippine Air Force’s capability demonstration at Colonel Ernesto Rabina Air Base in Capas, Tarlac, on Monday (July 3, 2023) in celebration of PAF’s 76th founding anniversary. REY BANIQUET/PNA
Despite fiasco, ad agency of DOT could still get paid By Ma. Stella F. Arnaldo
@akosistellaBM Special to the BusinessMirror
T
HE Department of Tourism (DOT) is still considering paying its advertising agency DDB Philippines Inc. despite the cancellation of its P50-million contract, after the rider video to its new tourism slogan “Love the Philippines” was found to have used stock footage of scenes abroad instead of those in the country. In a news statement on Monday, Tourism Secretary Christina Garcia Frasco said: “As DDB Philippines has publicly apologized, taken full responsibility, and ad-
mitted in no uncertain terms, that non-original materials were used in their AVP [audio-visual production], reflecting an abject failure to comply with their obligation/s under the contract and a direct contravention with the DOT ’s objectives for the enhanced tourism branding, the DOT hereby exercises its right to proceed with termination proceedings against its contract with DDB.” (See, “Stakeholders, TPB shut out of new tourism drive decision,” in the BusinessMirror, July 3, 2023.) She added, “The DOT shall exercise its right to forfeit performance security as a result of default in See “Fiasco,” A2
PESO EXCHANGE RATES n US 55.3680 n JAPAN 0.3837 n UK 70.3284 n HK 7.0650 n CHINA 7.6359 n SINGAPORE 40.9557 n AUSTRALIA 36.8862 n EU 60.4120 n KOREA 0.0421 n SAUDI ARABIA 14.7632 Source: BSP (July 3, 2023)