‘40 years of poor rice yield make imports crucial’
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EXPLOSIVE BRILLIANCE Germany’s Steffes Ollig Feurwerk claims victory at the 11th Philippine International Pyromusical Competition at the SM Mall of Asia By the Bay! Portugal’s Macedos Pirotecnico and the United Kingdom’s Pyrotex Fireworks likewise put on remarkable displays, taking home 1st and 2nd runner-up honors, respectively. Since May 11, 2024, the competition has mesmerized audiences with a breathtaking spectacle of pyrotechnic artistry, culminating in a magnificent finale featuring the UK and an exhibition from the Philippines. SM SUPERMALLS
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ITH the country’s low rice production already 40 years old, importation has become crucial in ensuring that Filipinos have access to the food staple, according to the National Economic and Development Authority (Neda). On Monday, Socioeconomic Planning Secretary Arsenio M. Balisacan told reporters that importation has helped the government ensure that the country had sufficient and affordable rice supply for Filipinos. Balisacan said the country’s rice production woes persisted for four decades because the Philippines failed to increase agriculture investments such as those that would have gone to irrigation. “Our problem is, for the last 40
years, we have always been short of production. And our demand, our total consumption has always been higher than our production. So, if you don’t import, prices will rise,” Balisacan explained, partly in Filipino. “If we had started addressing these issues of the agricultural sector many years ago, then we should have not been in this situation now. The lack of, for example, of irrigation. That’s the easiest way to double, to increase productivity,” he added. Irrigation investments require building either small or big dams that will allow farmers to grow crops all year round and not just during the rainy season. Balisacan said if farmers nationwide were provided with suf-
ficient irrigation facilities, there is a chance that they could plant two or even three times a year. More frequency in planting rice, Balisacan said, will significantly increase rice production. However, making these investments is not cheap, nor can they be completed in a short period of time. The Neda Chief said irrigation facilities take 3 to 5 years to complete or even longer, especially if the funds being used are Official Development Assistance (ODA). Nonetheless, Balisacan said, the recent 69-percent increase in the budget of the Department of Agriculture (DA) can be a significant boost in realizing these investments. “That will mean we address the the lack of irrigation development issues, the logistics issues, the
marketing distribution issues, the access to seeds, access to planting materials, the access to fertilizers. That’s where government support is focused on,” Balisacan stressed. “The intention is to raise the productivity because in truth, the only way you can improve the welfare of our farmers on a sustained basis is increase their productivity so that they are able to get more incomes, more profits from whatever small piece of land they have,” he added.
Tariffs impact GIVEN the recent spike in inflation, Balisacan said, government had to bring down rice tariffs to 15 percent from the 35 percent. This, he said, can keep rice prices from increasing further.
BusinessMirror Tuesday, June 11, 2024 Vol. 19 No. 238
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Q1’S FDI NET INFLOWS UP 42.1% TO $3B–BSP By Cai U. Ordinario @caiordinario
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HE country’s foreign direct investments (FDIs) grew 42.1 percent in the January to March period this year, according to the latest data from the Bangko Sentral ng Pilipinas (BSP). The data showed the cumulative FDI net inflows grew to $3 billion in the first quarter of 2024, higher than the US$2.1-billion net inflows recorded in the same period of 2023. In March 2024, the data showed FDI increased 23.1 percent to $686 million from the $557-million net inflows in March 2023. “The 42.1-percent surge in Q1 FDI net inflows year-on-year highlights global confidence in the Philippines as a preferred investment destination. The investment increase is across diverse sectors, underscoring our dynamic economic landscape and strategic potential,” Trade and Industry Secretary Alfredo Pascual said in a statement. BSP said the expansion in FDI net inflows was driven mainly by nonresidents’ net investments in debt instruments, which grew by 19 percent year-on-year to $465 million from $391 million in March 2023. However, Rizal Commercial Banking Corporation (RCBC) Chief Economist Michael L. Ricafort said the net FDIs of the country was the slowest in five months or since October 2023.
TOLLING IN THE HILLS Houses dot the hills of Baguio City, where a company has proposed a congestion fee of P250 or more for motorists entering Session Road, the city’s central business district. This initiative aims to alleviate traffic in the summer capital of the Philippines. Baguio City residents will be eligible for rebates. NONIE REYES
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285-M TOURISTS TRAVELED WORLDWIDE IN Q1–UNWTO By Ma. Stella F. Arnaldo @akosistellaBM Special to the BusinessMirror
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LOBAL economic issues, along with geopolitical skirmishes remain as challenges to the sustained recovery of international tourism and weigh on people’s confidence to travel. This developed as the United Nations World Tourism Organization (UNWTO) reported some 285 million tourists traveled across borders in the first three months of 2024, up 20 percent from the same period in 2023. The first-quarter 2024 international visitor arrivals represented 97 percent of prepandemic 2019 lev-
els. “These results were boosted by continued strong demand, the opening of Asian markets, as well as by enhanced air connectivity and visa facilitation,” said the latest UNWTO World Tourism Barometer. The Barometer added that total export revenues from international tourism, including both receipts and passenger transport, reached US$1.7 trillion in 2023, which was some 96 percent of prepandemic levels in real terms (i.e. excluding inflation). Tourism direct gross domestic product (GDP) last year recovered from prepandemic levels, and hit some $3.3 trillion, equivalent to 3 percent of global GDP. According to UNWTO’s Panel
Experts, international tourism will likely recover completely this year supported by strong demand for travel, increased air connectivity, and the continued rebound of China and other major Asian markets. Said experts surveyed for the UN Tourism Confidence Index resulted in a score of 130 points (on a score of 0 to 200) for the upcoming summer season (May to August), reflecting a more upbeat sentiment than earlier this year, when the index reached just 122 points.
Sports events to lift summer travel THE Barometer added: “Some 62 percent of tourism experts participating in the Confidence
survey expressed better [53 percent] or much better [9 percent] expectations for this four-month period, covering the Northern Hemisphere summer season, while 31 percent foresee similar performance as in 2023.” More travel is seen as Europe hosts two international sports this summer, i.e. Paris Summer Olympics in July and August, and Union of European Football Associations European Championship in Germany in June and July. However, the Panel of Experts cited economic and geopolitical headwinds as continuing to pose significant challenges to the complete recovery of international tourism and confidence levels. See “Tourists,” A
PESO EXCHANGE RATES Q US 58.5390 Q JAPAN 0.3735 Q UK 74.5084 Q HK 7.4936 Q CHINA 8.0803 Q SINGAPORE 43.3045 Q AUSTRALIA 38.5187 Q EU 63.0699 Q KOREA 0.0424 Q SAUDI ARABIA 15.6100 Source: BSP (June 10, 2024)