Economic managers rebut UPSE’s MIF paper
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HE Marcos Jr. administration’s economic managers issued Tuesday an eightpage rebuttal to the paper published by the UP School of Economics (UPSE), maintaining that the Maharlika Investment Fund (MIF) is critical in the country’s economic development. In a joint statement, the economic managers answered pointby-point the arguments raised by some UPSE faculty members in their paper published last week. The economic managers asserted that the MIF and the proposed Military and Uniformed Personnel (MUP) pension reform would allow the country to reduce its reliance on foreign and domestic loans to fund
the government’s annual budget. They noted that passage of the MIF bill and the MUP bill are legislative priorities of the current administration in providing “radical reforms” to improve the country’s economic and fiscal standing. “Both measures symbolize the administration’s recognition that nations should begin finding ways to gradually close the gap in the budget deficit, and reflect the concerted efforts to promote continued fiscal sustainability,” the joint statement read. “This will allow our nation to move away from reliance on foreign and domestic loans to fund our annual budgetary requirements and will move us closer to self-sustain-
ability in sourcing financial requirements,” it added. The economic managers reiterated that the MIF would “widen” the fiscal space in the near- to mediumterm, as it would slash the “heavy” reliance on local funds and development assistance to bankroll the country’s infrastructure projects. “By providing an alternative source to public infrastructure spending, there would be a bigger budgetary allowance for other priority expenditures,” they said. The economic managers also argued that the MIF is aligned with the Medium-Term Fiscal Framework (MTFF) and the 8-Point Socio-economic Agenda. Furthermore, they argued that
the MIF also “operationalizes” the Philippine Development Plan, citing a provision that the government “diversify and explore” alternative sources of financing in managing the country’s debt. “The Maharlika Investment Corporation [MIC] and the MIF aim to execute and sustain high-impact infrastructure and development projects, ease fiscal constraints, and maximize expected returns for our country’s investments,” they said. “The objectives are clear: to invest funds that are available in government instrumentalities and utilize them for investment purposes on the basis of their individual See “UPSE,” A2
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Wednesday, June 14, 2023 Vol. 18 No. 240
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GLOBAL ECONOMIC JITTERS BLAMED FOR $500-M DROP
Q1 FDI inflows down nearly 20% By Jasper Emmanuel Y. Arcalas
DOLE backs regulation of AI’s use, production
@jearcalas
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HE country’s foreign direct investments (FDI) net inflows in the first quarter declined by nearly a fifth to $2.042 billion from $2.542 billion a year ago, the Bangko Sentral ng Pilipinas (BSP) said Tuesday. BSP data showed that the $500-million drop was caused by the contraction across all major components of the FDI. In March alone, FDIs to the Philippines plunged 30.7 percent to $548 million from $792 million in the same month of last year, according to the BSP. “The said decline resulted from lower net inflows across all major FDI components amid investor concerns over subdued global growth prospects,” it said in a statement on Tuesday. BSP data showed that debt instruments accounted for the bulk of the March FDI. Net investments in debt instruments fell by 37.2 percent to $389 million from $620 million last year. Meanwhile, FDIs in the form of equity other than reinvestment of earnings dropped by 11.7 percent year-on-year to $94 million, while reinvestment of earnings remained relatively f lat at $65 million. “Equit y capital placements during the month originated mostly from Singapore, Japan, and the United States. These were directed mainly to the 1) manufacturing; 2) information and communication; and 3) real estate industries,” the BSP said. R iza l Commercia l Bank ing C o r p. C h i e f E c o n o m i s t M i chael L . R icafor t noted t hat “ increased ” market volatilit y See “FDI,” A2
By Samuel P. Medenilla @sam_medenilla
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FIELDS OF WANT After toiling in the rice fields, hired farm hands, locally known as manggagawang bukid, make their way home via dikes in Siniloan, Laguna. With the scarcity of farmers and landowners willing to toil the land, the country has seen the rise of the practice of hiring workers for harvest. Unfortunately, some landowners have chosen to convert rice fields into housing projects, with dire results on sustainable farming practices. This, as the government has resorted to importing rice to meet the demand. The US Department of Agriculture’s Foreign Agricultural Service recently projected that the Philippine rice imports will rise to a record high of 3.9 million metric tons this year. BERNARD TESTA
PHL GAME DEVT FIRMS UPBEAT ON EXPORT PROMISE By Andrea E. San Juan @andreasanjuan
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DELEGATION of five Philippine game development companies generated an initial US$1.67 million in export sales and 71 more trade leads following the business-to-business meetings during the country’s participation in the Nordic Game
2023 in late May in Sweden, the Department of Trade and Industr y-Ex port Marketing Bureau (DTI-EMB) said. The DTI-EMB and the International Trade Centre (ITC) said it collaborated with the Game Developers Association of the Philippines (GDAP), as they organized the first Philippine participation in Nordic Game. The game development com-
panies are: GameOps, Inc., Neun Farben Corporation, Mata Technologies, Inc., Seaversity Inc., and Taktyl Studios. DTI Trade Promotions Group (TPG) Assistant Secretary and Officer-in- Charge Glenn G. Peñaranda said this initiative is part of the country’s efforts to build linkages with possible European clients and diversify export markets for Philippine
game development companies. “Through the support of the ARISE Plus Philippines Project funded by the European Union, Philippine companies were able to showcase their capabilities in Europe’s major game development conference and establish business connections with prospective clients,” Peñaranda said.
ITH the growing impact of artificial intelligence (AI) in the operations of more establishments, the Department of Labor and Employment (DOLE) backed the proposed legislation regulating the production and use of the new technology. “We are always watchful to ensure that [artificial intelligence] will not be harmful to the health, safety and continuation of the livelihood of our workers,” Labor Secretary Bienvenido E. Laguesma said in a radio interview on Tuesday. “However, we will not oppose the introduction of new ways to improve the [work] process and improve productivity,” he added.
New legislation
THE labor chief made the pronouncement when asked about his position on House Bill (HB) No. 7396 or the Act Promoting the Development and Regulation of AI in the Philippines. Among the salient provisions of the bill is the creation of the Artificial Intelligence Development Authority (AIDA). Surigao del Norte 2nd District Rep. Robert “Ace” Barbers said he
See “Export,” A2 See “DOLE,” A2
PESO EXCHANGE RATES n US 55.9960 n JAPAN 0.4012 n UK 70.1014 n HK 7.1472 n CHINA 7.8339 n SINGAPORE 41.6885 n AUSTRALIA 37.8085 n EU 60.2517 n KOREA 0.0437 n SAUDI ARABIA 14.9323 Source:
BSP (13 June 2023)