Risks from Trump win: Remittances, geopolitics–Nomura By Cai U. Ordinario
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Israeli airstrikes kill 38 in Lebanon, Hezbollah responds with rocket fire
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HE Philippines is forecasted to be among the A SE A N cou nt r ies t hat could suffer from downside risks projected from the re-election of Donald Trump as President of the United States. In its Asia Economic Monthly report, Nomura economists Euben Paracuelles and Nabila Amani said the country cited lower remittances from tighter immigration policies under Trump’s administration as one such risk.
T he countr y could also be thrust onto the frontline of geopolitics in the West Philippine Sea given reduced support from the United States, Paracuelles and Amani also said. “The Philippines does not have a similar cushion and will be at risk from the impact on workers’ remittances from a possible tightening of US immigration policy and on the outsourcing sector,” the economists said. “Increased geopolitical tensions in the South China Sea due to the lack of US security support could put the Philippines on the
front line. This could be an issue for the broader region, if China’s assertiveness in the disputed waters intensify,” they added. However, the policies of the Trump administration on climate change ad energy could benefit net oil-importing countries including the Philippines, India, and Thailand. Analysts have noted the policies of the Trump administration aim to reverse existing climaterelated policies and agreements as well as increase the production of fossil fuels. The investments of Asian firms
in the US such as South Korean EV and battery companies could be adversely affected if the Inflation Reduction Act subsidies are rolled back, the two also said. However, the increase in the production of fossil fuels could increase oil drilling in public lands as well as tax breaks to oil, gas, and coal producers could benefit countries like the Philippines. “Higher oil & gas supply should lead to lower prices in the medium term; but geopolitics-driven supply shocks could offset higher See “Risks,” A2
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Monday, November 11, 2024 Vol. 20 No. 33
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By Reine Juvierre Alberto
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@reine_alberto
HE national government’s debt payments dropped by 60.83 percent to P93.610 billion in September, as amortization owed to lenders significantly declined. According to the latest data from the Bureau of the Treasury (BTr), debt servicing amounted to P93.610 billion in September 2024, or 60.83 percent lower than the P238.999 billion payment during the same month in 2023. Amortization, or the repayment of loan principal over time, shrank by 88.21 percent year-on-year to P19.758 billion in September from P167.551 billion. Only 0.44 percent or P87 million in amortization was paid to domestic lenders while 99.56 percent or P19.671 billion went to foreign financiers during the month. Meanwhile, interest payments reached P73.852 billion, 3.36 percent higher compared to last year’s P71.448 billion. About 75 percent or P55.405 billion of the interest payments went to domestic sources, of which the government paid P32.993 billion in fixed-rate Treasury bonds, P19.183 billion in retail Treasury bonds and P3.203 billion in Treasury bills. See “Debt,” A2
TESLA PLUGS INTO PHL MARKET From left: Kevin Tan, CEO of Alliance Global Group; Ian Rojas, Store Manager of Tesla Philippines; Frederick Go, Special Assistant to the President for Investment and Economic Affairs; and Tesla Regional Director Isabel Fan at the launch of Tesla’s Experience Center in Uptown Bonifacio, Taguig City. This is Tesla’s latest expansion in Asia, highlighting its aim to tap into the growing EV market in the Philippines and the region. Tesla will soon open its Tesla Studio, where Filipino customers can personalize car exteriors, interiors, and select features—a move aligned with Tesla’s strategy to attract Asian markets by offering localized and immersive brand experiences. NONIE REYES
PHL DELAYS SUGAR IMPORTS TILL MAY; DA RULES OUT NEED
Palace EO bans even Pogos with ecozone license–DOJ
HE Philippines has decided to delay the importation of sugar until May 2025 following the conclusion of the current crop year’s harvest, according to the Department of Agriculture (DA). Agriculture Secretary Francisco Tiu Laurel Jr. said there was no immediate need for additional imports since the domestic supply of raw and refined sugar was sufficient to meet projected needs. “Given the current situation, Administrator Azcona and I agreed that a decision on
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sugar importation could be delayed until after May when the current harvest season ends,” Laurel said in a statement. Sugar Regulatory Authority (SRA) Administrator Pablo Luis Azcona seconded this, noting that the harvest season for the crop only recently began. “Our supply for both raw and refined sugar are stable and we are just beginning our harvest season, so [Secretary] Laurel and I agreed to delay the decision on sugar imports See “PHL,” A2
By Joel R. San Juan @jrsanjuan1573
HE Department of Justice (DOJ) on Sunday said the executive order issued by President Ferdinand Marcos Jr. banning the operation of all Philippine Offshore Gaming Operators (POGO) in the country covers even those with licenses issued by economic zones authorities. DOJ Undersecretary Raul Vasquez, in an interview over Teleradyo on Sunday, said Marcos’s Executive Order No. 47 was issued to finally put an end to various speculations and doubts as to the new policy of
the government against POGO operations. “This one now clears the air so to speak, that all offshore gaming operators and internet gaming licenses are covered no
matter who issued it,” Vasquez explained. On Saturday, Malacañang directed Cagayan Economic Zone Authority (CEZA) administrator and chief executive officer Katrina Ponce Enrile to ensure that the President’s executive order is implemented within the economic zone. The Palace issued the reminder after Enrile and her father, Chief Presidential Legal Counsel Juan Ponce Enrile, previously said the ban should not destroy the operations of CEZA, including its offshore gaming licenses. The Enriles argued that unlike the POGOs licensed by the state-run Philippine Amusement
and Gaming Corporation (Pagcor), the foreign iGaming operators licensed by CEZA all operate legally and are prohibited from soliciting and accepting bets from the Philippines and other countries where gambling is prohibited. Vasquez said EO 74 made it very clear that CEZA and other economic zones have to comply with the President’s directive against POGO and other offshore gaming operations. “With finality and clarity, this EO should erase all questions and doubts in connection with the implementation of the total ban on POGO operations in the country,” Vasquez stressed.
PESO exchange rates n US 58.7470 n japan 0.3841 n UK 76.2947 n HK 7.5602 n CHINA 8.2215 n singapore 44.5053 n australia 39.2312 n EU 63.4820 n KOREA 0.0426 n SAUDI arabia 15.6492 Source: BSP (November 8, 2024)