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
BusinessMirror
www.businessmirror.com.ph
A broader look at today’s business
Tuesday, March 11, 2025 Vol. 20 No. 150
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 22 pages | 7 DAYS A WEEK
FDI FLOW SINKS TO $110M, n
LOWEST IN 11 YRS–BSP
T
By Reine Juvierre S. Alberto @reine_alberto
HE flow of foreign investments into the Philippines sank to its lowest level in 11 years, as policy uncertainties and global economic risks likely discouraged investors. Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed foreign direct investments (FDI) plunged by 85.2 percent year-on-year to $110 million in December 2024 from $743 million. This is the lowest since the $102.1 million posted in December 2013. “Policy uncertainty and global economic risks may have dampened investor sentiment, leading firms to delay or scale down expansion plans in the Philippines,” Philippine Institute for Development Studies Senior Research Fellow John Paolo Rivera told BusinessMirror. Although US President Donald Trump’s influence on the drip in
FDI inflows is “indirect at best,” Rivera said investor sentiment is forward-looking and his presidency is a factor in global investment decisions. The sharp decline in net FDI inflows is also “concerning,” Rivera said, as this indicates both shortterm financial pressures on local firms and potential shifts in investor sentiment toward the Philippine economy. The BSP said the FDI declined due to increased debt repayments by resident corporations to their nonresident direct investor. The higher debt repayments resulted in net foreign investments in debt instruments shifting to See “FDI,” A2
NFA’S P10-B MODERNIZATION BOOSTS STORAGE, PROCESSING By Ada Pelonia
T
@adapelonia
HE National Food Authority (NFA) will allot P10 billion for a modernization program aimed at boosting its storage and processing capacity. The grains agency said the initiative would be funded through government allocations, with 50 percent of the budget granted last year and the remaining P5 billion included in the 2025 national budget. The NFA said P1.5 billion would be earmarked for repairing existing warehouses to preserve the quality of palay and rice, while the P3.5 billion will be used to add 800,000 metric tons (MT) of storage capacity by next year. NFA Administrator Larry Lacson said the new and upgraded warehouses will improve the
grains agency’s ability to store rice and palay, allowing for better management of the national rice inventory. “This expanded capacity will help us address the current issue where our warehouse space is almost full,” Lacson said in a statement. The NFA explained that while its current storage capacity stands at 1 million metric tons (MMT), varying rice stock quality and age often hinder full utilization. With this, the agency said the new warehouses, combined with updated milling and drying equipment, would maximize storage efficiency.
Processing efficiency
MEANWHILE, the remaining P5 billion for rice mills, dryers, and silos would focus on improving processing efficiency, See “NFA’s,” A2
MEATING EXPECTATIONS: INFLATION SLOWS, PORK PRICES STEADY Vendors at the Las Piñas public market display pork cuts with government-mandated maximum suggested retail prices (MSRP) as part of ongoing efforts to stabilize food costs. The easing of food inflation to 2.6 percent in February 2025, down from 4.0 percent in January, reflects a slowdown in price increases for essential goods and services. Authorities continue monitoring price trends to ensure affordability for consumers. NONIE REYES
PSA: Agri trade gap narrows in January By Bless Aubrey Ogerio
T
@blessogerio
HE country’s agricultural trade gap narrowed in January 2025 as export receipts improved during the period, according to the Philippine Statistics Authority (PSA). Preliminary data from PSA showed a $1-billion agricultural trade deficit for the month, lower by 2.8 percent than the $1.29 billion recorded a year ago. Overall agricultural trade, meanwhile, climbed to $2.43 billion in January, 15.4 percent higher than last year’s $2.01 billion. The country earned $715.25 million from outbound shipments of agricultural products, a 32.8-percent jump from $538.68 million a year ago. These accounted for 11.2
percent of the country’s total exports for the month. “The top 10 commodity groups in terms of value of agricultural exports contributed $699.89 million or 97.9 percent to the total agricultural export revenue in January 2025. The combined agricultural export value of these top 10 commodity groups posted an annual increase of 33.6 percent during the month,” the PSA said. Leading the list were animal and vegetable fats and oils, which generated $263.87 million or 36.9 percent of total agricultural exports. Exports to Asean countries reached $118.19 million, accounting for 12.4 percent of total exports to the region. The top three exports were fats and oils ($63.98 million), tobacco products ($26.07 million) and cocoa preparations ($5.29 million).
Malaysia was the top buyer, accounting for $77.56 million, or 65.6 percent of total exports to Asean. Meanwhile, agricultural imports reached $1.72 billion in January, comprising 15 percent of total imports. This was 9.4 percent higher than the $1.57 billion recorded in January 2024. “The top 10 commodity groups in terms of value of agricultural imports amounted to $1.41 billion or 82.3 percent of the total agricultural import revenue in January 2025. The combined agricultural import value of these top 10 commodity groups posted an annual increase of 4.4 percent in January 2025 relative to its value in the same month of 2024,” the agency said. Among the groups, cereals topped the list, accounting for $328.02 million or 19.1 percent of
total imports. Agricultural imports from Asean countries hit $660.53 million in January, making up 21.8 percent of total imports from the region. The top imports were fats and oils ($171.86 million), cereals ($146.94 million), and miscellaneous edible preparations ($121.64 million). Vietnam remained the top supplier of cereals to the Philippines, accounting for $192.16 million, or 29.1 percent of total Asean agricultural imports. According to PSA, the International Merchandise Trade Statistics serve a key role in computing the balance of payments, estimating national accounts and guiding policy formulation for economic planning and trade agencies. It also supports research and other relevant initiatives.
PESO EXCHANGE RATES n US 57.2800 n JAPAN 0.3874 n UK 74.0344 n HK 7.3709 n CHINA 7.9083 n SINGAPORE 43.0547 n AUSTRALIA 36.1036 n EU 62.1030 n KOREA 0.0395 n SAUDI ARABIA 15.2686 Source: BSP (March 10, 2025)