PHL PHLto tofix fixweak weakspots spotsin inpath pathto to$500-B $500-Bdream dream Moody’s keeps PHL ratings at Baa2; outlook still stable B S A B A C S A Bloomberg A News C
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QUEEN ELIZABETH LIES IN STATE AS THRONGS PAY LAST RESPECTS
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HILIPPINES’S incoming ecoN T ER NAT IONA L c red it nomic planning secretary ArHILIPPINES’S incoming ecowatcher Moody’s Investors senio Balisacan to bol-Arnomic planningplans secretary Service announced on Thursster the economy’s weak spots senio Balisacan plans to as bolthat itleast affirmed theannual Philipheday targets 6-percent ster the ateconomy’s weak spots as growth throughout term of Prespines’s rating onthe the back of the he targets at least 6-percent annual ident-elect Ferdinand Marcos growth throughout termJr. ofamid Prescountry’s ongoingthe recovery The next Ferdinand administration ident-elect Marcosmust Jr. turbulent times. boostTh investment in agriculture and next administration must In ea statement, Moody’s said manufacturing and build infrastrucboost investment in agriculture and the Government of the Philture to grow the and economy between manufacturing build infrastrucippines’s long-term local and 6-8 percent annually to 2028, Baliture to grow the economy between foreign currency issuer andBalisesacan in an interview Wednes6-8 said percent annually to 2028, day. nior ratings remains sacanunsecured said in an interview WednesFarm andThe industry output curday. at Baa2. outlook remains rently account less than 40 perFarm andfor industry output curstable. cent of gross domestic product, while rently account for less than 40 per“In Moody's view, the rebound cent of gross domestic product, while
in economic activity since mid-
services contributes the majority. “I wouldcontributes like to see those weakest services the majority. points“Ias the priority of the adminiswould like to see those weakest tration,” said 64-year-old, who’s points as thethe priority of the adminiscurrently chairman of the nation’s tration,” said the 64-year-old, who’s 2021 has been strong and will be antitrust commission. currently chairman of the nation’s resilient to the current challenges Consistently growing at the rate antitrust commission. by the in global credit ofposed 6 percent for turn sixgrowing years will make Consistently at the rate conditions near-term,” Philippines a over half-a-trillion dollar of 6 percent for sixthe years will make economy, according tosaid. Bloomberg the ratings Philippines aagency half-a-trillion dollar calculations. Moody’s, however,towarned that economy, according Bloomberg The nation’s first-quarter expancalculations. while the challenging global credsion of percentfiis already among Th8.3 e nation’s expanit conditions arerst-quarter not expected to Asia’s fastest, thanks istoalready the reopension of 8.3 percent among derail the Philippines’s ongoing ingAsia’s fromfastest, the pandemic. Marthanks toStill, the reopenrecovery from the coronavirus cos’s immediate challengingteam fromfaces the pandemic. Still, Marthe panes:pandemic, inflation isthe at severity its fastestofinchallengthree cos’s team faces immediate years, budget has widened demic shockisdefi has ledfastest to an erosion es: infl ation at cit its in three and the outlook dimmed. years, budget deficithashas widened in theglobal rating agency’s assessment Still, said the and theBalisacan globalstrength. outlook haseconomy dimmed. of economic can expand by at leastsaid 7 percent this Still, Balisacan the economy Moody’s added that contincan expand by at least 7 percent this ued policy orthodoxy and com-
year, within the official growth estimate, from the year,riding withinthe therecovery official growth estirecord in 2020 from due tothe mate,contraction riding the recovery therecord pandemic. He saidinhe2020 will push contraction due to formitment more targeted support measures the pandemic. He said he push to reform amidwill polititofor easemore inflation’s burden on the poor targeted support measures cal transition will government help assure while ensuring “tight” to ease inflation’s burden on the poor gradual fiscal repair following finances are managed properly. while ensuring “tight” government the reversal of the strengthencanare achieve moreproperly. with less,” fi“We nances managed heing said, that more a review and of adding the achieve government's “We can withfiscal less,” streamlining of benefi are and debtadding metrics resulting he said, that aciaries reviewfrom and needed. The nation cannot streamlining of also benefi ciaries af-are the pandemic. ford removal certain taxes onafneeded. Th e of nation also cannot “The Philippines also retains goods asremoval proposed by some sectors, ford of certain taxes on strengths with rehefundamental said. as proposed goods by some sectors, gards to the stability of its banking he said.
system andeconomist the capacity to meet Experienced BALISACAN willeconomist draw from his exexternal debt repayments, notExperienced
perience in crafting a newfrom economic BALISACAN willcyclical draw his exwithstanding pressures development plan.ofBefore taking perience in crafting apayments new economic on the balance and helm of the antitrust he served development plan.body, Before taking consequent exchange rate deprehelm of the antitrust body, he served
ciation,” Moody’s added.
as economic planning secretary of theas late president Benigno Aquino of economic planning secretary from 2016. Benigno Aquino the2012 late to president To sustain from 2012 toeconomic 2016. growth of at least 6 percent, the next administraTo sustain economic growth of at Stable outlook tion must addressthe rednext tape administraand build least 6 percent, The rating was assigned a stable infrastructure needed attract intion must address redtotape and build outlook, which means that it inis vestment in manufacturing and aginfrastructure needed to attract unlikely to changed in the next riculture, said Balisacan, who holds aagvestment inbe manufacturing and PhD in from thewho Univer12 to Economics 18 months. riculture, said Balisacan, holds a sity of Hawaii. Moody’s has also affirmed the PhD in Economics from the UniverGiven a budgetforeign deficit currency inflated sity of Hawaii. government’s by pandemic-era support Given a budget defiprograms, citrating inflated senior unsecured shelf at companies and multilateral develby pandemic-era support programs, (P) Baa2 and the senior unsecured opment agencies be tappeddevelto companies and may multilateral ratings for rail theand liabilities of he the finance roads, opment agencies mayirrigation, be tapped to country’s central bank, Bangko said. Balisacan helped manage thehe finance roads, rail and irrigation, Aquino administration’s flat agship Sentral ng Pilipinas (BSP) Baa2. said. Balisacan helped manage the public-private partnership infraAquino administration’s fl agship The ratings agency also said public-private partnership infrait “sees sufficient momentum” to
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2006 National Newspaper of the Year CLUBNewspaper OF MANILA JOURNALISM AWARDS 2011 ROTARY National of the Year National Newspaper the Year 2013 2006 Business Newspaper of theofYear National Newspaper the Year 2017 2011 Business Newspaper of theofYear Business Newspaper the Year 2019 2013 Business Newspaper of theofYear Business Newspaper of the Year 20212017 Pro Patria Award 20192018 Business Newspaper of the Year PHILIPPINE STATISTICS AUTHORITY Data Champion 2021 Pro Patria Award PHILIPPINE STATISTICS AUTHORITY 2018 Data Champion
AAbroader look at today’s business look at today’s business A■broader broader look at today’s business Thursday, June 2, 2022 Vol. 17 No. 237
S “PHL,” A S “PHL,” A
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@BcuaresmaBM
ILIPINO migrant workers sent around $2.9 billion in cash remittances in July this year, the highest monthly remittance to the country for 2022, data from the Bangko Sentral ng Pilipinas (BSP) showed. The Central Bank reported on Thursday that cash remittances grew 2.3 percent in July this year from its level the same month last year to hit $2.9 billion. While this is the highest monthly cash remittance for the year, July’s remittances saw a slower growth rate compared to the previous month’s 4.4 percent. On a year-to-date basis, cash remittances amounted to $18.26 billion in January to July 2022, up by 2.8 percent from $17.77 billion recorded in the same period last year. The BSP traced the expansion in cash remittances in July 2022 to
the growth in receipts from both land-based and sea-based workers. In terms of country source, the growth in cash remittances from the United States (US), Saudi Arabia, Singapore, and Qatar contributed largely to the increase in remittances in the first seven months of 2022. Despite the high volume of remittances during the month, Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort warned that its effect on the families and the economy may be tempered by higher prices of consumer goods. See “July,” A2
DIOKNO: KEEPING POGOS GIVES PHL ‘REPUTATIONAL RISKS’
Members of the Power for People Coalition, a network of civil society organizations, cooperatives and consumers, stage a picket rally in front of the Meralco headquarters on Ortigas Avenue in Pasig City, Thursday, September 15, 2022. They are urging the electric distribution utility company to side with consumers in light of San Miguel Corp.’s pass-on charges to recoup its losses due to the high prices of fossil fuel. NONOY LACZA
FIRB allows BPOs to move to BOI to keep their perks
THE BRP Melchora Aquino, the second of two multi-role response vessels procured by the Philippine government from Japan, is welcomed by the Philippine Coast Guard at the Port Area in Manila on Wednesday, June 1, 2022, completing its maiden voyage from Japan. Constructed by Mitsubishi Shipbuilding Co. in Japan, the ship, named after Sora, the Grand thevessels Spanish colonialbyperiod, is part ofgovernment the Maritimefrom Safety Capability Improvement Project ofCoast the Coast DOMINGO THETandang BRP Melchora Aquino, theWoman secondofofthe twoRevolution multi-roleduring response procured the Philippine Japan, is welcomed by the Philippine GuardGuard. at theROY Port Area in Manila on Wednesday, June 1, 2022, completing its maiden voyage from Japan. Constructed by Mitsubishi Shipbuilding Co. in Japan, the ship, named By Cai U. Ordinario POGO total period, of P1.22 after Tandang Sora, the Grand Woman of the Revolution during the law, Spanisha colonial is partbilof the Maritime Safety Capability Improvement Project of the Coast Guard. ROY DOMINGO @caiordinario lion in taxes has been collected HE Fiscal Incentives Review quire any physical transfer of these B C U. O @caiordinario BIR from POGOs from OcBoard (FIRB) has decided to firms. The registration transfer B C U. O by@caiordinario
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HE country faces “reputober 9 to December 31, 2021. HE performance of the tational risks” if it con(Story here:Philippine https://businessmirror. HE performance of the Philippine tinues to allowin Philipcom.ph/2022/02/14/bir-collectseconomy the second half pines Offshore Gaming Op%e2%82%a71-2b-from-pogos-inin the second half ofeconomy the year will rest squarely erators (POGOs) to operate, oct-dec-21/) oftothe year according Finance Secretary “Ifsquarely you ask my personal opinon the shoulders ofwill therest incoming Benjamin Diokno. ion on this, let’s discontinue with on the shoulderseconomic of the the incoming administration’s team, In a Senate Finance CommitPOGOs because of the social administration’s tee hearing on Thursday, economic Diokcost of team, the POGO,” Diokno said according to a local thinkin atank. no added that the impact on the hearing when Senator Imee according to a local think tank. country’s revenues would not Marcos asked the economic team be significant since revenues only P3.9 In itshave latestreached Market Call report, Firstbillion Metro in 2021, a little over half the P7.2 Investment University of Asia First and the In itsCorp. latestand Market Call report, Metro billion it generated at its peak. Pacifi c (FMIC-UA&P) Capital Markets Research Investment Corp. and University of Asia and the Since theCapital effectivity oftothe saidPacifi thecgrowth momentum which gave rise (FMIC-UA&P) Markets Research thesaid 8.3-percent growth in the fiwhich rst quarter the growth momentum gave will rise to spillthe over to the second quarter. 8.3-percent growth in the first quarter will However, of the economy in spill over tothe theperformance second quarter. the third and fourth quarters will of bethe determined However, the performance economyn in by the the third policies to be implemented by the new and fourth quarters will be determined economic will greet by the team. policiesMuch to beuncertainty implemented by thethenew economic managers as the pandemicwill continues economic team. Much uncertainty greet the andeconomic commodity prices remain managers as theelevated. pandemic continues “Thecommodity robustness in the economic and prices remain elevated.recovery, founded“The heavily on employment gains, should robustness in the economic recovery, spillfounded over intoheavily Q2 [theonsecond quarter].gains, And while employment should a tighter fiscal andsecond inflation pose And serious spill over intospace Q2 [the quarter]. while headwinds anation economic a tighterinfiH2 scal[second space half], and infl poseteam serious of high-quality the new President’s headwinds intechnocrats H2 [secondinhalf], an economic team of high-quality technocrats in the new President’s
PESO exchange rates
what it plans to recommend regarding the the expansion or contincabinet can handle emerging scenario,” the uation of POGOs in the report stated. cabinet can handle the emerging country. scenario,” the
One of the major risks that post the most report stated. See “Diokno,” A2 uncertainty is the Russia-Ukraine One to of the the economy major risks that post the most waruncertainty which willtomark its first 100 days. The war the economy is the Russia-Ukraine began February 24 this anddays. will The reachwar war in which will mark its fiyear rst 100 100began days on 3. FMIC-UA&P Capital in June February 24 this year and Markets will reach USResearch 57.100 1600dayssaid noncommodity japan 0.3994 n UKMarkets 65.9855 prices, particularly oil June 3. FMIC-UA&P Capital prices, could remain elevated until the war in EastResearch said commodity prices, particularly oil ernprices, Europecould is resolved. This uncertainty lead remain elevated until the will war in Eastto an ation of above 5 percent in ernaverage Europe infl is resolved. This uncertainty willthelead country year. inflation of above 5 percent in the to anthis average In April, country thisthe year.Philippine Statistics Authority (PSA) reported ation nationwide increased In April,that theinflPhilippine Statistics Authority to 4.9 percent in April Thenationwide average inflincreased ation (PSA) reported that 2022. inflation for tothe4.9first four months of theThe yearaverage stood at percent in April 2022. infl3.7 ation for the first four months of the year stood at 3.7 S “H,” A S “H,” A
T PANDEMIC CHALLENGE PANDEMIC CHALLENGE MARKS MARKS18TH 18THCONGRESS CONGRESS
Sotto Sottocloses closes‘productive’ ‘productive’ session; session;Zubiri Zubirinext nextSP? SP?
allow Business Process Outperiod to BOI from the Philippine sourcing (BPOs) firms to transfer Economic Zone Authority (PEZA) their registration to the Board of Inwill be between now and Decemvestments (BOI) in order for them to ber 2022. continue enjoying their incentives. “The FIRB met yesterday and UTGOING Senate PresiDrilon moved to elect Majority On the second day of the Dedecided that there will be a and smooth B J M N. D C and strengthened our political dent Vicente Sotto III Leader Juanmoved MigueltoZubiri as the UTGOING Senate PresiDrilon elect Majority velopment Budget Coordination transfer from PEZA to BOI and so governmental institutions. B J@joveemarie M N. D C and strengthened our political and declared at 7:41 pm of acting Senate President Pro Temdent Vicente Sotto III Leader Juan Miguel Zubiri as the Committee (DBCC)’s that problem is solved. Their tax “Despite the institutions. many challenges @joveemariebriefing on governmental Wednesday as adjourned sine die pore from noon of June 30 until declared at 7:41 pm of acting Senate President Pro Temthe HE 2023 National Expenditure thatincentives will continue but they House of Representatives happenedthe during mychallenges tenure “Despite many the third regular session of thedie July 25,from when the of 19th Congress Wednesday as adjourned sine pore noon June 30 until Program in the Senate, the Departcan happened opt to dowe it workrisen fromtenure home,” onHEWednesday ended the asthat your Speaker, have and House of Representatives during my 18th Congress on thesession part ofofthe first convenes. the third regular the July 25, when the 19th Congress ment of Finance (DOF) explained Secretary Benjamin 18th Congress, highlighting ourselves to One Conon Wednesday ended the proven asFinance your Speaker, webe have risen and E. Senate, capping on what Minority in the day, colleagues 18th Congress the part of the fiEarlier rst convenes. during the transfer, there will gress, Diokno. “If transition isCondone, Leader itsthat 3-year achievements, including ready to the serve people,” 18th Congress, highlighting proven ourselves toour be One Franklin Drilon thatinZubiri had colleagues secured Senate, capping whatdescribed Minority signaled Earlier the day, be in thenavigate incentives that’s some 2,000 orour so firms from as “one of the most productive seslaws to diminution helpachievements, the country told histo colleagues. its no 3-year including Velasco gress, ready serve people,” “votes” that of majority senators Leader Franklin Drilon described the signaled Zubiri of had secured through emerge strongernavigate from of these firms. PEZA,Congress, they transfer to BOI sions” of the chamber, a feat made “One ready to scrutilaws toand help the country Velasco told hiswill colleagues. sit in 19th Senate, a as “one of the most productive ses- who thewill “votes” ofthe majority of senators the Covid-19 pandemic. the national budget, pass The transfer of their registrathrough and emerge stronger from nizeincentives.” “One Congress, ready to scrutiremarkable by chamber, the fact that much confisit rmed by Drilon. sions” of the a feat made matter who will in the 19th Senate, a In Covid-19 his valedictory speech,An- laws, conduct hearings, the pandemic. tion, Finance Undersecretary nizetothe national budget,totopropass ofremarkable it was in a pandemic. Zubiri confi appears to be the by the fact that much matter rmednow by Drilon. Speaker Allan Velasco said oversight on implementaIn Lord his valedictory Seethe “FIRB,” A2 to protonette Tionko said, wouldspeech, not re- vide laws, to conduct hearings, peers heaped praise on only Zubiri likely candidate to stand ofHis it was in a pandemic. appears now to befor the the 18th Congress was Velasco a key and of oversight laws, and on to generally make Speaker Lord Allan said tion vide the implementaSottoHis for his leadership, laud-on election as the next Senate Presi-for peers heaped and praise only likely candidate to stand steady partner of President easier theand next the 18th Congress was aDuterte key and it tion offor laws, to Congress generally and make edSotto and thanked well theand seven after as Sen. Cynthia Villar, earfor his leadership, laud- dent, election the next Senate Presin HK 7.2828 n CHINA 8.2091 n singapore 40.6572for nthe australia 38.5830 n EUother 57.0571 nthanked KOREAas0.0411 n of SAUDI 15.2062 Source: BSP (September 15 , 2022) insteady passing laws promoted itsitleadership, to continue the legpartner of that President Duterte easier next Congress and “graduating” members the arabia lier touted a strong contender, ed and as well the seven dent, afterasSen. Cynthia Villar, eareconomic development, work for the sake of our in passing laws thatstrengthpromoted islative its leadership, to continue thekaleg- chamber, including two other of pilwithdrawing other “graduating” members the announced lier toutedshe as awas strong contender, ened the administration justice babayans,” he added. economic development,ofstrengthislative work for the sake of our ka- lars—Drilon and Senate the race. she was withdrawing chamber, including twoPresident other pil- from announced and thethe ruleadministration of law, enhanced the He said the ened of justice babayans,” hepandemic added. forced the Pro Tempore Ralph “Walathe nang [There is no] SP race,” lars—Drilon and Recto. Senate President from race. protection of labor andenhanced social welto be dynamic, and the rule of law, the House Heleadership said the pandemic forced the As Tempore his “last Ralph officialRecto. act,” Drilon she told reporters, Pro “Wala nang [Thadding, ere is no]“ISPwant race,” fare, improved of and and proactive. protection of the laborquality and social wel- innovative House leadership to be dynamic, introduced resolution meant to a she simple and explained As his a“last official act,” Drilon told life” reporters, adding, “I she want increased access to “Despite the lingering threat fare, improved theeducation quality ofand and innovative and proactive. prevent a month-long leadership to “take of my adintroduced a resolution meant to just a wanted simple life” andcare explained she information, enhanced our health increased access to education and “Despite the lingering threat gap in the aSenate, as the terms of vocacy, agriculture,” signaling heradprevent month-long leadership just wanted to “take care of my C A and emergencyenhanced response our system, information, health Sotto and endasatthenoon ofof desire to keep her chairmanship gap in theRecto Senate, terms vocacy, agriculture,” signaling of her C A and emergency response system, Butch Fernandez June 30. and Recto end at noon of that committee. Sotto desire to keep her chairmanship of June 30. that committee. Butch Fernandez
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PESO EXCHANGE RATES ■ US 52.4120 ■ JAPAN 0.4073 ■ UK 66.0496 ■ HK 6.6799 ■ SINGAPORE 38.2625 ■ AUSTRALIA 37.6004 ■ SAUDI ARABIA 13.9750 ■ EU 56.2643 ■ CHINA 7.8555 Source: BSP (June 1, 2022) PESO EXCHANGE RATES ■ US 52.4120 ■ JAPAN 0.4073 ■ UK 66.0496 ■ HK 6.6799 ■ SINGAPORE 38.2625 ■ AUSTRALIA 37.6004 ■ SAUDI ARABIA 13.9750 ■ EU 56.2643 ■ CHINA 7.8555 Source: BSP (June 1, 2022)