Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 10137

Money supply growth at three-year low

By Melissa Luz T. Lopez, Senior Reporter
MONEY SUPPLY growth eased to a three-year low in October, reflecting a decline in foreign assets as dollar reserves dropped further during the month, the Bangko Sentral ng Pilipinas (BSP) said.
Domestic liquidity or M3, which is the broadest measure of money in an economy, expanded by 8.2% year-on-year to P11.14 trillion. The growth eased from 9.8% in September, and is the slowest pace logged since January 2015, according to central bank data.
Month-on-month, money supply even slipped by 0.1% coming from the P11.166 trillion level in September.
“Demand for credit remained the principal driver of money supply growth,” the BSP said in a statement.
Driving the slowdown is a 5.2% contraction in net foreign assets held in peso terms, bigger than the 0.9% drop in September. The central bank’s foreign assets also slipped from a year ago due to a decrease in gross international reserves, which are currently at a seven-year low of $74.773 billion.
The central bank used the reserves to temper sharp swings in the exchange rate, as the peso continued to trade above the P54 level versus the dollar during the first few weeks of October.
Meanwhile, foreign assets held by banks also saw a slower climb last month due to a slowdown in investments on debt papers.
The slowdown in liquidity growth came after the BSP’s back-to-back rate increases worth 50 basis points (bp) each during their August and September meetings, which were done to rein in inflation expectations as price increases posted nine-year highs.
The central bank followed through with another 25-bp increase in November, which brought the benchmark borrowing rate to 4.75%.
Some market players are saying that liquidity is “tight” in recent weeks, at a time when interest rates are trending higher and with growing capital requirements in the economy.
LENDING GROWTH QUICKENS
Meanwhile, approved bank loans grew faster in October to reach P8.005 trillion.
Bank lending growth picked up to 18.1% last month from a 17.6% pace in September. If reverse repurchase agreements are included, total credit is 17.9% higher compared to 16.5% the previous month.
Bulk of the credit lines were allotted for production activities, which took 88.7% of the total. These loans rose by 18.7% from a year ago, and quickened from the 17.4% increase in September.
The construction sector saw the biggest pickup in loans, which jumped 39.1% from a year ago. Other industries which incurred bigger borrowings include financial and insurance (32%); manufacturing (20%); wholesale and retail trade, repair of motor vehicles and motorcycles (19.9%); real estate activities (15.4%); and electricity, gas, steam and airconditioning supply (11.9%).
On the other hand, consumer loans eased to 14.6% from 18.2% previously, on the back of slower growth in credit card and auto loans as well as a drop in salary-based lending.
“The BSP will continue to ensure that the expansion in domestic credit and liquidity proceeds in line with overall economic growth while remaining consistent with the BSP’s price and financial stability objectives,” the central bank said.
Policy makers have noted the recent slowdown in credit growth, but noted that they expect lending to remain upbeat as the economy can still absorb higher interest rates.

Atwood writing her own Handmaid’s Tale sequel

CANADIAN AUTHOR Margaret Atwood said on Tuesday that she is writing a sequel to her best-selling dystopian novel The Handmaid’s Tale.
“Yes indeed to those who asked: I’m writing a sequel to The #HandmaidsTale,” Ms. Atwood wrote on her Twitter account.
Called The Testaments, the novel will be set 15 years after the events depicted in The Handmaid’s Tale and will be narrated by three female characters, Ms. Atwood wrote in a Twitter posting. The book is due to be published in September 2019 by Penguin Random House, a division of Germany’s Bertelsmann.
The Handmaid’s Tale, a bleak vision of a near future in an American society called Gilead where women are banned from reading and writing, have their children taken away from them, and are forced into sexual servitude by a patriarchal dictatorship, was first published in 1985.
Its adaptation for television on streaming service Hulu last year brought new acclaim and multiple Emmy awards for the performance by Elisabeth Moss as lead character Offred.
“Everything you’ve ever asked me about Gilead and its inner workings is the inspiration for this book. Well, almost everything,” Ms. Atwood wrote in a video message on Twitter.
“The other inspiration is the world we’ve been living in,” she added, without elaborating.
Feminists in several nations have adopted the striking red gowns and white bonnets worn by the handmaids in the book and television series to highlight women’s rights at protests and marches.
Ms. Atwood, 79, said her sequel will not be related to the Hulu television series of The Handmaid’s Tale, whose second season earlier this year moved beyond the author’s original book. — Reuters

DMCI property unit on track to hit P40-B reservation sales

THE property unit of DMCI Holdings, Inc. remains on track to reach its P40-billion target for reservation sales this year, following the strong demand for its projects in Mandaluyong and Pasig.
DMCI Project Developers, Inc., which operates under DMCI Homes, said in a statement on Thursday that reservation sales reached P33.48 billion in the first nine months of 2018. This is seven percent higher than the P31.34 billion it posted in the same period a year ago.
“The target was P31 billion at the start of the year. We adjusted it in the middle of the year. So we think we’re on track to reach that (P40-billion target),” DMCI Homes President Alfredo R. Austria told reporters in a Nov. 11 briefing.
Mr. Austria noted the company booked about P39 billion in reservation sales in 2017.
The company attributed the strong sales to Kai Garden Residences in Mandaluyong, after it booked P8 billion in sales by end-September. Also among the top contributors were its Pasig developments named Fairlane Residences and Prisma Residences, which delivered P7.26 billion and P3.18 billion worth of sales and reservations, respectively.
At the same time, DMCI Homes launched Fairlane Residences, The Atherton in Parañaque City, and Satori Residences in Pasig City. The launch of new projects during the nine-month period is set to generate about P21 billion in sales.
The Consunji-led firm also noted that it was able to increase its landholdings to P9 billion in the first three quarters of 2018, from P4.9 billion in the same period a year ago due to new acquisitions in Visayas and Mindanao.
“This is part of the company’s plan to expand outside Metro Manila which started with Outlook Ridge Residences in Baguio City and Verdon Parc in Davao City. We are also hoping to help address the housing needs in other key cities like Cebu in the near future,” Mr. Austria said in a statement.
The company reported that it has completed 10 buildings this year, including Bristle Bridge in Baguio City, Brio Tower in Makati City, Asteria Residences in Parañaque City, Mirea Residences and Lumiere Residences in Pasig City, and Ivorywood in Taguig.
DMCI Homes realized an attributable profit of P3.4 billion in the first nine months of 2018, 29% higher year-on-year due to a one-time gain from the sale of its undeveloped lot in Quezon City. Excluding this, the company’s attributable profit went up two percent to P2.7 billion.
Revenues also rose by two percent to P14.7 billion during the period.
The company spent P10.3 billion worth of capital expenditures as of end-September. Of this, 74% went to development costs. Land and asset acquisition cornered the remaining balance. — Arra B. Francia

SpongeBob SquarePants creator Hillenburg, 57

LOS ANGELES — SpongeBob SquarePants creator Stephen Hillenburg, who brought the zany cartoon marine underworld of Bikini Bottom to television, the movies, and the stage, has died at the age of 57, the Nickelodeon television network said on Tuesday.
Mr. Hillenburg had said last year that he was suffering from the neurodegenerative disease ALS, also known as Lou Gehrig’s disease. He died on Monday.
“We are incredibly saddened by the news that Steve Hillenburg has passed away following a battle with ALS,” the network said in a statement. “He was a beloved friend and long-time creative partner to everyone at Nickelodeon, and our hearts go out to his entire family.”
Mr. Hillenburg was a marine biology teacher in Southern California when he started creating sea creatures as teaching tools.
The first episode of SpongeBob SquarePants, featuring the cheerful yellow sea sponge, who lived in an underwater pineapple, and his friends Mr. Krabs, Larry the Lobster, Patrick, and their Krusty Krab restaurant hangout, aired on US television in May 1999.
The series went on to win multiple awards, produced a series of spin-off books, two Hollywood movies, and a Broadway musical. The television series has aired in more than 200 nations and has been translated into more than 60 languages.
“Steve imbued SpongeBob SquarePants with a unique sense of humor and innocence that has brought joy to generations of kids and families everywhere,” the Nickelodeon statement said.
“His utterly original characters and the world of Bikini Bottom will long stand as a reminder of the value of optimism, friendship and the limitless power of imagination.”
Nickelodeon is a unit of Viacom. — Reuters

Pagbilao project certified as ‘nationally significant’

ENERGY WORLD Corp. Ltd. (EWC) said its 650-megawatt (MW) power project in Pagbilao, Quezon was certified as an “energy project of national significance” by the Department of Energy (DoE).
Energy World is building the first liquefied natural gas (LNG) fired combined cycle gas turbine (CCGT) power station, which will be the anchor tenant of its Pagbilao LNG hub terminal.
“Confirmation that our project is of national significance shows the continued support from the Philippines Department of Energy at the highest level, and the project will now benefit from specific provisions set out in Executive Order (EO) 30, issued by President Rodrigo Roa Duterte to support important energy projects, which are deemed to help the development and security of the country, which were at risk of being delayed by excessive ‘red tape’ and to further enforce cooperation between various government agencies and franchise,” EWC told the Australian Securities Exchange on Nov. 28.
Under EO 30, energy projects of national significance will be allowed to go through a simplified regulatory permitting process.
EWC received the certificate, signed by Energy Secretary Alfonso G. Cusi, on Nov. 26.
The certification of national significance recognizes that the power plant will be the anchor off-taker of the LNG project, the company said.
EWC is developing the Philippines’ first LNG hub terminal, which consists of two full containment, onshore LNG tanks — each with a pumpable capacity of 130,000 cubic meters of LNG. It will also have a dedicated jetty and marine infrastructure to support LNG ships, as well as a regasification facility.
“We have always remained committed to bringing clean and affordable energy to the Philippines. This Certification of National significance from the DoE recognizes, in line with the concerns of President Duterte, that many important projects have been held up by issues which are beyond the developer’s control. We appreciate the continued support from the DoE while we work to bring this project to commercial operation,” EWC Chief Executive Officer and Managing Director Stewart Elliott was quoted as saying in the statement.
The DoE has been trying to encourage proponents of an LNG import terminal ahead of the expected depletion of the Malampaya gas-to-power project starting in 2024.
Natural gas, said to be the cleanest fossil fuel, is usually transported through a pipeline, but if the deposit is large and the market is overseas, the gas may be liquefied for ease of shipping and moved via specialized tankers. Imported LNG is then regasified or reverted to its former state in the country of destination.

BPI sees double-digit loan increase in 2019 as it boosts retail business

BANK OF THE Philippine Islands (BPI) expects double-digit loan growth next year amid improving economic conditions as it continues to expand its retail lending business.
In a media luncheon on Thursday, BPI President and Chief Executive Officer Cezar P. Consing said its loan growth for 2019 is expected to be “in the teens” given that the economy “continues to grow the same way it has been growing.”
“It may not be the same pace of the last four, five years, but it will still be a healthy growth,” Mr. Consing told reporters yesterday.
He added that the Ayala-led bank can now be “more optimistic” given that price increases should “begin to taper off.”
“I think…the combination of oil prices having come down and with the interventions done by the government on the food side, the inflationary pressures are probably less, so inflation should begin to taper off,” he said.
“And if inflation begins to taper off, the pressure to raise interest rates will subside a little bit and I think that it might be better for the economy as a whole.”
Inflation stood at 6.7% in October, matching the previous month’s print which was a nine-year high. Month-on-month inflation likewise eased to 0.3% from 0.9% posted in September.
The central bank has raised its policy rates by 175 bps after five straight hikes to quell inflation expectations as prices of basic goods and services surged beyond the 2-4% target for 2018.
As BPI is looking at booking “healthy” loan growth next year, Mr. Consing said the bank wants to continue expanding its consumer business to hit 35% of its total loan book.
To achieve this, the official said BPI should “grow [its] consumer loans faster than the corporate segment every year. So over time, the share of the corporate comes down.”
Currently, BPI’s retail loans make up 20% of its total lending portfolio, while the corporate segment is at 80%.
Earlier this month, the lender raised P25 billion via its peso-denominated bond offer, higher than the initial guidance of P5 billion and the P15 billion announced previously. Proceeds of the fundraising activity will be used to support its expansion plans and diversify funding sources.
The Ayala-led bank reported a P5.98-billion net profit in the third quarter on the back of the double-digit expansion of its net interest income.
BPI shares went up by 20 centavos or 0.21% to P94 apiece on Thursday. — Karl Angelo N. Vidal

PRC reviewing CPD Law rules to ease burden on professionals

THE Professional Regulation Comission (PRC) plans to reduce the requirements on licensed professionals in order to ease the burden of complying with the Continuing Professional Development (CPD) Law.
In an interview with BusinessWorld on Wednesday, PRC Commissioner Teofilo S. Pilando Jr. said: “Right now we’ll be reviewing to see where we can reduce the burden on the professional.”
Republic Act No. 10912 or the Continuing Professional Development Act of 2016 was enacted in 2016 and took effect in 2017, after the PRC released Resolution No. 1032, which are the law’s implementing rules and regulations (IRR).
The PRC was called on by senators on Wednesday to amend the IRR to ease the burden on professionals required to complete a CPD course load.
In a hearing conducted by Senators Antonio F. Trillanes IV, Ralph G. Recto, Juan Miguel F. Zubiri, and Aquilino L. Pimentel III, the lawmakers agreed that the mandatory nature of CPD programs should be less onerous.
Mr. Pilando added “We had such high expectations at that time the law was passed but now maybe we’re realizing that things have to be resolved.”
The PRC also said that implementing the CPD Law has been hobbled by a lack of funding.
“We are limited in resources. Many know that we don’t have the budget to implement CPD. We’re limited in monitoring,” he said, adding that the PRC apologizes for the complaints of professionals regarding the law’s implementation.
On the mandatory nature of CPD course work, Mr. Pilando said that some fields really require CPD units. He also pointed out that the commission issued Memorandum Circular (MC) No. 07, Series of 2017 which allows professionals to sign undertakings to complete the required course work at some point in the future.
“We came up with the concept of the ‘undertaking’ so no one is being denied of the renewal because we believe the professionals are honorable persons. Why would you deny him the renewal of his (professional) ID?” he added. — Gillian M. Cortez

Waitress is fun and sweet

By Nickky F. P. de Guzman, Reporter
Theater Review
Waitress
Presented by Atlantis Theaterical Entertainment Group
Until Dec. 2
Carlos P. Romulo Auditorium, RCBC
Plaza, Ayala Ave. corner Gil Puyat Ave., Makati
(Spoilers ahead.)
TWO WOMEN in front of me couldn’t stop reacting to what they were watching on stage. Sometimes the other woman would slap her friend’s shoulder, out of kilig (thrill) and sometimes because of laughter. Then at one point, I saw them wiping away their tears. We were watching Atlantis Theatrical’s Waitress last Friday night.
The women’s big gestures, albeit done silently, could have been major distractions, but I found myself smiling at them because Waitress was able to elicit feelings that were relatable.
Waitress, really, has all the right ingredients to trigger one’s emotions. For this reason alone, Waitress is a stage success: it’s a musical with catchy songs (music and lyrics Sara Bareilles, book by Jessie Nelson) and it’s fun to watch, but it’s not detached from reality.
Based on an indie film from 2007, Waitress is anchored on the idea of women empowerment and the realities and difficulties that women face every day like dealing with abusive relationships and gender inequality. It tells the story of Jenna (well played by veteran actress Joanna Ampil), a pie-making genius who works at Joe’s Diner. She lives with an abusive douche bag of a husband Earl (also well played by George Schulze) who verbally mistreats her. You’ll love to hate Earl and his selfishness, especially when he makes Jenna promise that she’ll never love their baby as much as she must love him. Pregnant by accident, Jenna is learning to embrace her growing baby bump despite her anxieties and apprehensions about having a child, especially since she doesn’t love the father.
Jenna’s pies — and their names — are inspired by what is going on in her life, and songs around their creation punctuate the scenes set in Joe’s classic American South diner (the eye-catching set was designed by award-winning set designer David Gallo). It is through this creation that Jenna breaks the ennui of the everyday life. Ms. Ampil’s stellar performance as the unfortunate Jenna is totally believable — it’s as if she is Jenna and Jenna is her. The highlight of her performance was when she tearfully sang Bareilles’ “She Used to be Mine,” which is about how she misses her old self and the pain of her problems. This is when I noticed the two women in front of me silently sobbing along with the lead character on stage.
But Jenna is not alone — she is supported by her friends and fellow waitresses Dawn (Maronne Cruz) and Becky (Bituin Escalante), who have their own share of personal problems. The trio put layers to the story: Jenna is sweet and kind, Dawn is neurotic and nerdy, while Becky is outspoken and sassy. Despite their problems, all remain hopeful about their future.
Ms. Escalante embodies Becky as the typical “Big Southern Girl” with her thick accent, her big hoop earrings, high ponytail, and her strong personality. Becky is dealing with her own love life and family problems and Ms. Escalante’s solo performance of “I Didn’t Plan It” in the Act 2 reveals to the audience her character’s surprise twist.
Meanwhile, Ms. Cruz’ portrayal of Dawn as the nerdy and introvert waitress was so convincingly good. She looks and acts like she is the real-life Dawn. Her fun solo number, “When He Sees Me,” tells of her paranoia about dating and finally finding love for the first time. She has an even nerdier suitor, a magician named Ogie whom she met online (Nino Alejandro). Ogie’s laugh-out-loud number “Never Getting Rid of Me” was fun and funny. Their love team is awkwardly hilarious, but gentle and sweet nonetheless.
Jenna also has her own romantic moments — not with her abusive husband, but with her gynecologist Dr. Pomatter (played by a charming Bibo Reyes, who looks like Zac Efron and sounds like Christian Bautista, by the way). While both are cheating on their respective spouses, their romantic attraction is such that the audience had to root for their love team and wish for it to last. Their chemistry was oozing and that made the two ladies in front of me giggle among themselves. Act 1 ends with Ms. Ampil and Mr. Reyes’ duet of “Bad Idea” as they kiss and end up doing the deed.
The story ends happily. Act 2 progresses towards Jenna’s redemption: getting out of her abusive relationship, taking care of her baby, and having her own diner after Joe (Steven Conde), the owner of Joe’s Diner, gives it to her.
Dawn and Becky also find love and peace. All’s well that ends well in Waitress. Sweet.

China Bank injects P40M into MCBL

CHINA BANKING Corp. (China Bank) will be infusing additional capital into its insurance unit to support business expansion, the lender said yesterday.
In a disclosure, the Sy-led bank said its board of directors approved on Wednesday the infusion of P40 million into Manulife China Bank Life Assurance Corp. (MCBL).
This forms part of a P100-million capital hike for the insurer matched by a P60-million investment from the Manufacturers Life Insurance Co. (Phils.), Inc. (Manulife Philippines).
“On top of complying with the higher capital requirements for insurance companies, the additional capital will improve MCBL’s capacity to underwrite more business and enhance its competitive position,” China Bank told the Philippine Stock Exchange.
Republic Act 10607 or the Amended Insurance Code of the Philippines requires existing insurers to have a paid-up capital of P900 million by December 2019, higher than the P550 million mandated as of December 2016. The minimum capital requirement will rise to P1.3 billion by December 2022.
MCBL held P500 million in paid-up capital as of end-2017, according to latest data from the Insurance Commission (IC).
China Bank partnered with Manulife for a bancassurance joint venture in 2007, with the listed lender initially taking a five percent stake in MCBL before it was raised to 40% in 2014. This arrangement allows agents and tellers to sell insurance products at China Bank branches.
The bank reported a P5.56 billion net income for the first nine months, down 2.1% from the P5.68 billion profit booked during the comparable period in 2017.
China Bank shares closed at P27.65 apiece on Thursday, 0.36% higher than the previous day’s close. — Melissa Luz T. Lopez

Asian companies set for first quarterly profit drop since mid-2016

HONG KONG — Holiday-quarter profit at Asian companies is likely to drop for the first time in more than two years, following a small rise in the July-September period, as slowing exports, falling factory output and the Sino-US trade war take their toll.
Analysts expect profit to drop by an average 8% for about 2,000 Asian companies over October-December from a year ago, weighed down by slowing growth for firms in the technology, telecommunications and auto sectors, Refinitiv data shows.
The last time things were so dire was the second quarter of 2016, when profit fell 9.4% as oil prices recovered from multi-year lows hit earlier that year, pressuring profit margins, a Reuters analysis of more than 5,000 firms showed.
“Fundamental risks that investors have anticipated since Q2 are starting to show in numbers,” Mixo Das, a strategist at JPMorgan said, adding that signs of margin pressure were emerging.
Profit growth in the September quarter had slipped to 2.4% after a 15.7% rise in the first two quarters of the year, on an average.
The outlook for global growth in 2019 dimmed for the first time last month, according to Reuters polls of economists who said trade protectionism and tightening financial conditions would trigger the next downturn.
Markets worldwide are bracing for a chill.
MSCI’s broadest index of Asia-Pacific shares outside Japan has slumped 14.6% so far this year, more than double the decline in the World index.
Analysts for Asian companies slashed their fourth-quarter and 2019 earnings expectations by 7.3% and 3.7%, respectively, in the last 90 days, Refinitiv data showed.
“Growth slowdown is coming from a very high base as 2017 was a year of recovery,” said Frank Benzimra, head of Asia equity strategy at Societe Generale, adding that companies are likely to cut their 2019 outlook after a disappointing fourth quarter.
The effects from higher tariffs and softer growth in China are more tangible in the fourth quarter, he said.
China and the US have been locked in a debilitating trade war for months, in which the countries have imposed tit-for-tat tariffs on billions of dollars of imports.
The effect has been felt most keenly by tech companies and firms that supply them with components, as well as auto makers who do not produce cars locally.
Corporate earnings in Japan are expected to plunge by nearly a quarter over October-December, their first drop since early 2016, on slowing profit growth at telecom firms SoftBank Group Corp. and NTT Docomo, Inc. and the three top car makers — Toyota, Nissan and Honda.
Echoing a slowing economy, China corporate earnings growth is expected to fall 4.4% versus a 3.5% growth in the third quarter, as companies including tech giants Tencent Holdings Ltd. and Baidu, Inc. register softening profits. With oil LCOc1 at its lowest in over a year, analysts expect energy firms’ profits to come under pressure in the current quarter, taking away what was the brightest spot in the third quarter. — Reuters

DBP net income up in first nine months

DEVELOPMENT BANK of the Philippines (DBP) reported higher net income in the first nine months propelled by its lending business.
In a statement sent to reporters Thursday, the state-owned DBP said it booked a P4.49-billion net income in the nine months ended September, up 13% from the P3.98 billion recorded in the same period a year ago.
This also exceeded DBP’s P4.06-billion nine-month target and is already 81% of its full-year profit goal of P5.56 billion.
DBP President and Chief Executive Officer Cecilia C. Borromeo said the bank’s financial performance in the nine-month period was on the back of robust growth in its lending activities as well as its “revitalized” branch operations.
DBP’s loan portfolio stood at P250.3 billion, already 98% of its year-end target of P256.6 billion, with new loan approvals at P85.9 billion.
By priority thrust, Ms. Borromeo said the infrastructure and logistics sector received the biggest chunk of the lender’s assistance, booking P104.5 billion in the first three quarters.
DBP also lent P26.2 billion to the social services sector as well as P15 billion to the small and medium enterprises segment, while loans to borrowers reached P246 billion, up 22% from P202 billion in the same period last year.
On the other hand, total deposits reached P447.83 billion in the nine-month period, 22% higher than the P367.3 billion a year ago.
DBP saw double-digit deposit growth in Northern Luzon with 29.3%, Southern Luzon with 27.6%, Metro Manila with 25.9%, Northern Mindanao with 25%, as well as Central and Eastern Visayas with 23.3%.
The state-led bank also installed 154 new automated teller machines (ATM) this year, bringing the total to a network of 756 machines nationwide.
Ms. Borromeo said DBP will continue to put up more ATMs this year, especially in underserved areas, to support the government’s financial inclusion agenda.
“DBP has surpassed most of its fiscal targets for the year, and at the same time, remains financially strong to support the various development initiatives of the government,” she added.
For the first nine months, DBP’s gross earnings reached P18.85 billion, up 14% from P16.54 billion a year ago.
Overall, the lender’s total assets jumped 13% year-on-year to P632.93 billion from P557.84 last year.
Capital adequacy ratio was at 14.51% while common equity Tier 1 ratio was at 10.96%.
DBP was the eighth-largest commercial bank in the country in asset terms as of end-June and is the designated infrastructure bank by the government. It provides lending to four key sectors of the economy, namely infrastructure and logistics, SMEs, social services and community development as well as the environment. — K.A.N. Vidal

Wage growth slows globally despite strong economies — ILO

THE International Labor Organization (ILO) has found that global wage growth declined to its lowest level in almost 10 years despite rapid economic growth.
ILO said in its Global Wage Report 2018/19: “Global wage growth in 2017 was not only lower than in 2016, but fell to its lowest growth rate since 2008, remaining far below the levels obtaining before the global financial crisis. Global wage growth in real terms (that is, adjusted for price inflation) has declined from 2.4% in 2016 to just 1.8% in 2017.”
“The slowdown in wage growth in 2017 occurred in spite of more rapid economic growth,” the report added.
ILO Director-General Guy Ryder said in a statement earlier this week: “Such stagnating wages are an obstacle to economic growth and rising living standards. Countries should explore, with their social partners, ways to achieve socially and economically sustainable wage growth.”
Despite the decline globally, Asia and the Pacific registered one of the highest real wage growth rates among all the regions in the study. The ILO said that the region’s real wage growth last year fell to 3.5% from 4.8%, driven by wage growth in China, India,Thailand, and Vietnam.
Regions that experienced a decline in real wage growth were Africa (minus 3% from minus 1.3%); Northern, Southern and Western Europe (0% from 1.3%), and Central and Western Asia (0.5% from 3.0%).
Regions that experienced growth between 2016 to 2017 were Latin America and the Caribbean (0.7% from 0.1%); North America (0.7% from 0.6%); and the Arab States (3.4% from 2.8%). Eastern Europe was the only other region which experienced growth of more than 1% at 5.0% in 2017 from 2.8% a year earlier.
In the Philippines, the average real wage growth from 2008 to 2017 was 1.0%, lagging the regional median for Southeast Asia of 4.0%. Between 2000 and 2017, annual average real wage growth in the Philippines from 2000 to 2017 was 4.6%.
According to the National Wages and Productivity Commission (NWPC), the real minimum wage for workers in the private sector of Metro Manila was P473.61. NWPC also reported that for other regions, the real minimum wage as of October was between P221.69 and P340.14. — Gillian M. Cortez

1...10,13610,13710,138...12,735Page 10,137 of 12,735
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube