‘Close borders, cut Omicron exposure risk’ Marcos wants to ‘reintroduce’ Philippines Recession fears: PSEi drops to lowest in 2 yrs THE AP INTERVIEW
By Cai U. Ordinario
for government to be proactive in Marcos, 65, satthem. for a wide-ranging interimposing The Associated Associated Press Press The already drawing distinctions both subtle view in New York on sidelineswhen of the the UN usually want to relax in tropical “It is better that we do protective Previous the instances By VG Cabuag back of an aggressiveand Federal “The recession fears brought percent from its top. The PSEi obvious between himself and his voluble General Assembly’s annual leaders’ meetLOSING the country’s borders countries like the Philippines. This preventive measures than get excountry had the opportunity to im@villygcEW YORK—Looking Reserve and surging interest about by currency volatility also is months down 15into percent or 1,102.56 to “reintropredecessor, who alienated ing. Three his administration, is one of the most immediate year’s influx of OFWs is expected to Rodrigo posedDuterte, again. We have a lot to lose,” pose travel restrictions did not prerates, which in turn have roiled ledpartners to oil prices falling,” Limlinpoints sinceand it opened at the duce the Philippines” to the world, many international with his viohe seemed energetic enthusiastic—and courses of action the governbe heavier since many of them were Oplas said. “We should do it now so vent the spread of Covid-19. That was HARE prices plunged to currency markets. The Federal gan said. start of the year, according to beFerdinand Marcos Jr.for thelent approach to fighting eager tomainly projectbecause his vision the nation ment must take to preventnew thePresident latunable to come home holidays that we can drug open trafficking just before Christthefor decision was not the lowest for the last two Reserve’s aggressive hiking camClaire Alviar of Philstocks the PSE data. hasOmicron, ambitious plans forin hisDecember nation on2020. the inand the coarse rhetoric used to galvanize yond itsmade borders. est Covid-19 variant, from mas. If ithe gets contained, we can open immediately, he said. years asternational recession fears paign, coupled UK’s tax it again.” Finance Inc. said investors were On Thursday, “On the bright side, stage and at home—if, that is,withisthe supporters. he met with USthe President reaching Philippine shores, accord“My recommendation to protect “Kung papatay patay [If marwe’re overseas have dragged the local cuts and announced last week has if Duterte worried about inflation as it may ket was able to return above the twin specters of pandemic climate Asked went too far with his Joe Biden in a bid to strengthen the someing to local economists. the borders. Do not allow people with Ateneo Center for Economic Reslow] and we get caught flat-footmarket that change is already nearing caused the US dollar to surge, get pressured by the recent ty-times complicated the 6,000 psychological support be overcomeaor at leastofmanaged. lethal drug crackdown, Marcos redirected that have ebbed T he new var iant is acan threat, history travel to countries with search and Development (ACERD) ed, [that’s ties risky] We were too and rebear territory. And if he can surmountpushing to Philippine peso to phoon. level before the market close. the legacies of the criticism toward those who carried out flowed between the two nations since the e s p e c i a l l y w it h t he hol id ay s positive cases to enter,” Oplas said. Associate Director Ser Percival active instead of proactive before. The benchmark Philippine the P59 to $1 territory,” “This may also exacerbate Philippines Wespent are seeing the resistance at two people: his predecessor, and his the Luis plan. four decades as an Americoming up and more foreigners “We should befather. more restrictive. [We K. Peña-Reyes said closing the We should learn from that,” PeñaStock ExchangeHe index fell 239.47 Limlingan, managing director our food supply shortages which 6,400,” she said. also wants to strengthen ties with “His people went too far sometimes,” can colony in the early 20th century. being a llowed to travel to the have to be] more protective in terms country’s borders would be effecReyes said. “It’s a delicate balancing points to close at 6,020.07. This and China—a at Reginadelicate Capital Development may lead to higher inflation. InTotalbeen value ofand trade for the both States Marcos told Thetive Associated Press on Friday. where Philippines, De La Sathe lle United Univerof our measures.” but should still adhere to the “There act.have We need bits to push pieces testing and is the main index lowest since Corp., said. vestors digested the impact of session was high at P20.88 bilbalancing for the Southeast nation “Wewill have cases where they were not perhaps ideal,” Marcos said. sit y economist Mar ia Ellaact Oplas OplasAsian said that while this beseen many standards set bypolicemen, the World Health tracing to be properly informed October 19, 2020 when it closed The market opened Supertyphoon Karding lion. Losers gainers 189has —and, like many of hisafellow leaders at thealready other operatives, some were just shady char-in Luzon “But in of the end, that edged overall trajectory told BusinessMirror. setback to some industries, this Organization (WHO). our decisions. Blanket/shotgun at 6,019.26 points. low at 6,193.04 points and skid as well as the further weakening to 28 and 37and shares were un- and United Nations this week, called on the counacters that we didn’t quite know where they been to strengthen strengthen The holidays usually bring in is a fair measure considering that What is needed, Peña-Reyes told approaches could have dire conseselloff resumed to its lowest at 5,962.17 points of they the peso,” Alviar said. changed. PRESIDENT Ferdinand Marcos Jr. speaks during an interview with The Associated Press, Friday, September 23,“The 2022, inmarket tries that have caused global warming help came from who were working for. restricstrengthen our relationship.” Overseas Filipino Workers (OFWs) this could helptoprevent placing the andthis newspaper, is for travel quences on the economy.” with local shares following the counteract before making a comeback latewe’ve gone after She said the market is nearAPPHOTO/JULIA PHOTO/JULIANIKHINSON NIKHINSON Continued on A5 A5 A2 less wealthy nations its effects. But now them.” Continued on New York. AP See “Omicron,” “Omicron,” who are eager to spend Christmas country in another strict lockdown, tions to be put in place swiftly and See A2 Continued on A10 equity sell-off stateside on the in the trade. ing bear territory, or falling 20 @caiordinario @caiordinario
with their loved ones, while for-
which, she said, the economy can no
By Ted Anthony Marcos, swept intoafford. office this spring, is eigners living in temperate regions longer
C N S
BusinessMirror A broader look at today’s business
WB FORECASTS GROWTH NATL GOVT BORROWINGS FITCH THINK TANK SEES OF 6.5% FOR PHL IN ‘22 FOR 10 MOS DIP TO P2.75T RATES HITTING 5% IN ‘22 www.businessmirror.com.ph w w
Monday, November 29, 202128,Vol.2022 17 No.52 Wednesday, September Vol. 17 No. 355 Tuesday, September 27, 2022 Vol. 17 No. 354
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By Cai U. Ordinario By Bernadette D. Nicolas @caiordinario By Bianca Cuaresma @BNicolasBM @BNicolasBM
T R
@BcuaresmaBM @BcuaresmaBM
OBUST consumption spending HE national HE Bangko government’s is expected to boost the Sentral ng gross Pilipinas country’s economic growth borrowings as of (BSP) is expected and meet its GDP target this year, end-October shrank to continue raising according the World Bank. by almostpolicy 6 to percent monetary year-on-year rates this year,to even and Pacific Chief Economist In its East Asia Pacific as the country’s P2.75 trillion. (EAP) Asia Aaditya Mattoo said in a virtual Update, the World Bank said the Central Bankwillhas briefing on Tuesday. Philippine economy see better“It is also evident to us if you see than-earlier-expected growth of 6.5 already let out Latest data from the Bureau of the one of the charts in the report that percent this year before slowing to aggressive Treasury showedhikes that thein governyou have that the Philippines is one of 5.8 percent next year. ment’s gross borrowings during the the months countries which saw reasonably good In last April, three the World Bank only 10-month period fell by 5.99 percent export performance, [and] even more estimated that the country’s GDP —as thetrillion economy from P2.92 a year ago. than that, the revival of both public growth this year would average With only two months left for battles prices and private investment,” he added. 5.7 percent,rising similar to the actual this year, the latest figure is already Mattoo also said the recently full-year GDP growth in 2021. The and currency equivalent to 89.6 percent of its concluded elections as current administration targets a depreciation, anprogram. well as the Presidential P3.07-trillion borrowing revival of tourism in the growth of 6.5 to 7.5 percent this year. Broken down, gross domestic borinternational thinkagain, country is contributing to the ro“I think the main reason rowings from January to October as I said before, is the strong bounce bust consumption spending by both tank said. settled at P2.23 trillion, down by
Agri damage Omicron risk from Karding ‘Karding’ cuts spurs revival ₧1.29B hits big damage, of 6quarantine in regions but casualty
rules in PHL count limited
D I P
AMAGE caused by Supertyphoon Karding (internaBy Samuel P. Medenilla tional name: Noru) to the @sam_medenilla @sam_medenilla farm By sector hasP. soared to P1.29 Samuel Medenilla billion with@sam_medenilla over 141,000 hectares @sam_medenilla NTER NATIONA L concerns of agricultural areas affected & Rene Acosta over the possible spread across of the six more regions, the Department of @reneacostaBM @reneacostaBM infectious Omicron CoAgriculture (DA) said on Tuesday. vid-19 variant prompted the govIn its fifth bulletin on STY KardRESIDENT Ferdinand R. ernment to reimpose mandatory ing, the DA Disaster Risk Reduction Marcos Jr. on Monday infacility-based quarantine for all and Management Censpected fromOperations the air the masarriving passengers in the country. ter (DA-DRRM OpCen) said 82,158 sive devastation caused by SuperActing Presidential spokesperfarmers and fisherfolk lost 72,231 typhoon (international son Karlo“Karding” B. Nograles announced metric tons (MT) of produce. name: Noru)that across firing on Sunday the Luzon, Inter-Agency “The increase in Management overall damoff directives to ensure a return to Task Force for the age and losses is due to it additional normalcy for thousands affected. of Emerging Infectious Diseases reports on rice, highhevalue At the same time,corn, however, was (IATF) suspended the implemencrops, livestock andoffisheries incaall pleased by reports minimal tation of its Resolution No. 150affected something regions,” the DA-DRRM sualties, attributed to A (s.2021), effectively imposing OpCen saidpreemptive in the bulletin issued the timely evacuation stricter protocols for all inbound back of private consumption in the households and the government. Workers are seen inside a steel bar assembly at a construction site in Quezon City on Tuesday, September 27, 2022. With private investments seen ramping up and on local Tuesday afternoon. by government units. 5.08 percent from P2.35 trillion travelers. business operations speeding toward prepandemic normal, the World Bank has projected robust growth of 6.5 percent this year, but noted that the Philippines was Philippines, as in most countries Over theIATF weekend, around in 2020. To note, Resolution 150not immune to three regional risks—deceleration, debt and distortions. NONOY LACZA Continued on A10 in In the region,” Worldof Bank See “Agri,” A2 were evacuassessment local East eco75,000 in Luzon Theitsbulk of the amount was A had people allowed fully vaccinated PEOPLE walk past the mural of Gat Andres Bonifacio at Manila City Hall Underpass. nomic firm ated, andtravelers power and communicasourceddynamics, from Fixedresearch Rate Treasury non-visa from Green List The country will celebrate the 158th birth anniversary of Filipino revolutionary Fitch Solutions said on Monday it tion lines in some provinces were Bonds (P1.19 trillion), followed by areas to enter the country withROYDOMINGO DOMINGO hero Gat Andres Bonifacio on Tuesday, November 30. ROY now expects the BSP to raise interdisrupted. As of 3 p.m. Monday, out the need for facility-based short-term borrowings from Bangest rates by more basis however affected customers of Maquarantine as long as they secure ko Sentral ng75 Pilipinas or BSPpoints (P540 before the year ends, effectively nila Electric Company were down billion), Retail Treasury Bonds/Prenegative Reverse Transcriptionputting the benchmark at 5 percent to 32,816. myo Bonds (P463.3 billion), Retail Polymerase Chain Reaction (RTspikes will erode their purchasing HE number of Filipinos prolonged war in Ukraine could 2022; 49.6 percent in 2023; and by the endDollar of 2022. Thetest National Grid Onshore Bonds (P80.84 bilPCR) within 72 Corporation hours prior who aggressive will be lifted from power,” the World Bank said. heighten market uncertainty and 47 percent in 2024. This a more outlook of the Philippines also NGCP reto their departure. lion). Inisthe same period, there was poverty is expected to inBased on World Bank estitemper investment prospects. The Philippines is vying to compared their earlier forecast stored thefor vital Concepcion-CaBy Jasper Emmanuel Y. Arcalas datingan itsupper registry following the A them. This allows everyone to see programs as President Duterte also crease a net to redemption ofexpectations Treasury “Except countries classified on the back of mates, using the $2.15 in 2017 sharper-than-expected slowbecome middle-income of a 4.5-percent benchmark rate by miling 69kV Line. @jearcalas @jearcalas enactment of the Coconut Farmwho are listed in the registry and if is expected to sign the industry Billsthat amounting to P43.94 billion. as ‘Red,’ the testing and quarantine the economy will purchasing power parity (PPP), down in advanced economies, the country (UMIC). Based on the theNet end of thePhilippine year. ers and Industry Trust Fund law. country’s farmer doesn’t see his name then he development plan in early 2022. debt redemption means to protocols for all inbound internamain exports destinapost faster growth, according poverty incidence in the country Atlas Method, which also consid“Inflation is debts likely repaid to remain THIS is the view—a seemingly endless expanse of inundated towns and farmlands—that greeted President Marcos as he flew on Monday over the typhoon-hit Rosales provinces of Bulacan, Nueva Ecija and Farm ORE than 3 million Rosales explained that about shall coordinate with the PCA imsaid the PCA will not there were more comtionaldamage travelers in all ports of entry ersatexchange rates, antheUMIC has Marcos tion, will dampen exports,” the the World Bank. is expected tohard average 2.7 percent Karding elevated relative to the BSP’s tarINITIAL damage to testing farms was Tarlac, among those hit by Supertyphoon the weekend. Despite devastation, noted that preparations made by the government, especially timely preemptive evacuation, coconut farmers and 500,000 coconut farmers and mediately,” he explained at a recent stop updating its list of coconut pared toInthe amount borrowed durshall comply with the and a per-capita income estimate of World Bank said. a 2Macro Poverty Outlook mitigated this year; 2.2impact. percent next year; PHOTOCOURTESY COURTESYOF OFMALACAÑANG MALACAÑANGPALACE PALACE get range of percent to 4 percent PHOTO placed at P114 million, Karding’s Stories at left and in Nation, page A3. workers are now regisworkers$4,256 were added to the and PCA’s dialogue with coconut farmers. farmers and enjoined them to reging the period. quarantine protocols fora number ‘Yellow’ between and $13,205 On the domestic front, the (MPO) for the Philippines, the and 1.8 percent in 2024. andMeanwhile, we expect the central bank to sure to climb given the massive devtered with the government’s reg- $13,205 2018 list had 2.5 million World“On the other if people ister in order to reap the benefits gross foreign list countries,” Nograles said, citing orthat more forabout high-income Bank said highhand, commodity Washington-based lenderborsaid Using the lower middle-income tighten monetary policyperiod further to astation on farms that were ready istry, which serves as the basis coconut farmers and farm workers. would see names on the list and of the decades-long idled coconut rowings in the same also the provision of IATF Resolution economies. prices are expected to dampen the however, that high inf lation. poverty rate of $2.15 in 2017 PPP, anchor inflation expectations,” for forcountry’s the number of people to be The PCA’s next step is to con- country’s they think theyprospects are not coconut levy fund. “We will not stop at 3.1 contracted 9.7 percent to P518.7 No.harvest. 151-A. Story on page A3. Based on the World Bank’s growth this which by could last until 2024, is the poverty rate is foreFitch Solutions said. “Karding,” which packed winds covered by the17.1 utilization the duct anclassification, exclusion-inclusion pro- year farmers or their million. We hope that more indibillion from last billion. He noted Hong Kong, which has country the Philand next year.details are incorexpected toyear’s erodeP574.4 the purchasing cast to average percent of this “The Philippine peso has also of 120 miles per hour at its peak, P75-billion coconut levy fund. cedure by making the updated rect, they can report it to the PCA viduals will register in our coconut This was raised through global confirmed a case of the Omicron ippines remains a lower middleThe MPO estimated that inflapower of Filipinos. year; 15.2 percent in 2023; and come significant By Cai U. Ordinario the regionregistry contracted 0.8 percent, to once more. Ukraine impacted countries left communities inunder Luzonthe inunfarmers’ public, forclose action,” heaveradded. farmersthat registry,” he said. bondsunder (P146.17 billion), pressure program variant, will also fall Yelcountry which has anprovidaver13.4Philippine percent in Coconut 2024. Authority income tion inimmediate the Philippines will “While economic growth is @caiordinario as a result of tightening credit con@caiordinario the sharpest decline in regional Asakawa said the Russian in the region to varying degrees. dated, prompting the government (PCA) Deputy Administrator Roel ingper everyone the opportunity Thepercent PCA official noted that The updating of the coconut loanspicking (P139.98 billion), euro-delow list countries. age capita income of betweento age 5.2 The World Bank also said that, this year before up, the threat of inflation ditions globally. With the billion), US Fed GDP in 60 years. 2021, invasion of Ukraine is one list of The direct impact of the warby to deploy rescue and operaM. Rosales said about 3.11 million checkgrowth the veracity theIn list, Ro- slowing the completion of the in initial farmers registry is mandated nominated bonds (P121.97 The suspension of relief the rules for and $4,255 inof2021. to 4.2 percent 2023 $1,086 using the upper middle-income can erode these gains. Since food likely to hike by a further 75 bps HE weakening Chinese this rebounded to a 6.9-percent the main reasons for commodiis through trade as well as remittions. coconut farmers and farm worksales added. of coconut farmers registry would Republic Act (RA) 11524 or the a project loan (P86.41 billion), and “Green List” countries will be in “Risks to the outlook are tiand 3.9 percent in 2024. poverty threshold of $6.85 in and energy account for about 70 before end-2022, this will bonds likely economy, a lethal growth and will thisbe year it is expected ties to see the tances coming from Russia. In President Marcos flew ers have registered withCovthe tled “The posted in public be just in high time prices, for thewhile expected Coconut Industry Trust Fund Act. yen-denominated samurai effect from November 28,over 2021the to to thelist downside. Externally, 2017 PPP,been the country’s poverty percent of household expendiprompt the BSP to hike in tandem id-19 variant, the war in to post a growth of 4.3 percent. tightening of monetary policy terms of trade, Asakawa said imtyphoon-hit provinces of Bulacan, See “3-M farmers,” A2 Continued on A10 See “3-M farmers,” A2 government since it started upspaces where people can easily see rollout of coconut levy-funded December 15, 2021. (P24.19 billion). tures for the poor, the sharp price geopolitical tension including a incidence will be at 52 percent in to safeguard external stability,” the Ukraine, and the tightening of “The pace of recovery in the in advanced economies is causporters of food and energy will be Nueva Ecija, and Tarlac, See “Borrowings,” “Borrowings,” A2 Continued on A2 A2 and saw See A2 Continued on think tank added. monetary policy in rich nations various economies remains very, ing “instability in the financial significantly affected and causing inundated towns and farmlands. Just last week, the Monetary are the four biggest risks to the revery uneven among the economarkets” in the region. their import bills to balloon. He said affected areas, par50.4600economy, n JAPAN 0.4374 to n the UK 67.2329 nSo HKwe6.4722 nbear CHINA 7.9013 n SINGAPORE n AUSTRALIA 36.2807 n EU 56.5758 SAUDI 13.4531 Source: 2021) of Board decided to raise its interest n US gion’s according mies. have to in mind, However, of36.8968 these risks, AsakaThe inflation pressure n that this ARABIAticularly thoseBSPin(November Polillo26,Island n US 58.3490 n japan 0.4033 n UK 62.3284 n HK 7.4335 n CHINA 8. 1 785 n singapore 40.5709 n australia 37.6643 n EU 56.0792 n KOREA 0.0408 n SAUDI arabia 15.5183 Source: BSP (September 27, 2022) rates by 50 basis points. This is the Asian Development Bank (ADB). [there are] four possible downside wa said the Russia-Ukraine conflict creates leads countries to tighten Quezon—placed under Tropical third consecutive month that the In a curtain raiser for the ADB risks to the economic outlook of poses the most significant risk to monetary policy. The ADB recently Cyclone Wind Signal No. 5 last BSP hiked its benchmark rates: in Annual Meeting on Monday, ADB this region,” Asakawa said. the region. Still, Asakawa said the said the Bangko Sentral ng Pilipinas Sunday—will get immediate relief an off-cycle hike in July of 75 basis President Masatsugu Asakawa The slowdow n of China’s impact of remittances will be lim(BSP) is now the most aggressive from the government. points and another in August of 50 “Well, we are—presently what said these four factors are the economy is being driven by what ited in the region except for Central in terms of raising interest rates to basis points. we are organizing is the airlift for dark clouds hanging over the Asakawa said was a “very strinAsia, Caucasus and Mongolia which cool inflation. (https://businessThe BSP also said its average inflafood materials, food packs, water sustained recovery of the region gent zero-Covid policy” while have close trade and economic ties mirror.com.ph/2022/09/15/ tion forecast is now closer to 6 perinto Polillo because they said it was from the economic downturn there remains a possibility that with the Russian Federation. bsp-most-aggressive-in-hikingcent for this year from last month’s the first area to be hit [by Supercaused by the pandemic. a more lethal variant of Covid-19 There were both direct and policy-rates/) See “ADB,” “ADB,” A2 A2 5.4 percent average to 5.6 percent. typhoon Karding],” Marcos said. Asakawa noted that in 2020, could spread and cause economies indirect effects of the war in See
INFLATION TO HOLD BACK MARCH OUT OF POVERTY OVER 3-M FARMERS LISTED FOR P75-B COCO LEVY FUND T
M
ADB TAGS 4 BIGGEST RISKS TO ASIAN ECONOMY
T
PESO EXCHANGE RATES
PESOexchange EXCHANGE RATES PESO rates
See “Fitch,” “Fitch,” A2 A2 See
PESO EXCHANGE RATES n US 58.4060
See “Karding,” “Karding,” A2 A2 See
n JAPAN 0.4104 n UK 65.7418 n HK 7.4413 n CHINA 8.2506 n SINGAPORE 41.1861 n AUSTRALIA 38.7933 n EU 57.4657 n KOREA 0.0415 n SAUDI ARABIA 15.5273
Source: BSP (September 23, 2022)