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Kasanggayahan 2024 kicks off with National Festival Competition in Sorsogon

Senate President Chiz Escudero, First Lady Louise Araneta-Marcos and Sorsogon Gov. Edwin Hamor enjoy the performance of various groups competing in this year’s Kasanggayahan Festival, held at the newly-opened Sorsogon Sports Complex on Wednesday, Oct. 16, 2024.
Participants from all over the country took part in this year’s National Festival of Festivals Competition held in Sorsogon City, Sorsogon.
First Lady Louise Araneta-Marcos graced the kick-off of the event that was held at the newly-constructed Sorsogon Sports Complex in the city.
In his short message, Senate President Francis “Chiz” G. Escudero thanked the First Lady for attending the event and to President Ferdinand Marcos, Jr. for his support to the annual competition.
Sino mag-aakala na magkakaroon tayo ng ganitong klaseng arena kung saan makakanood tayo ng iba’t ibang kasiyahan, hindi lamang sa panahon ng Kasanggayahan, kundi sa anumang okasyon ng ating lalawigan,” said Mr. Escudero, who was governor of Sorsogon from 2019 to 2022.
Participants perform at the Kasanggayahan Festival.

The Kasanggayahan Festival is the biggest in the province and one of the highlights of the annual festivities is the National Festival of Festivals Competition.

Contingents from all over the country presented performances that highlight the unique cultural narratives and traditional practices of their respective localities.
As announced by the First Lady, President Marcos provided an additional P1 million each to the top three prizes, bringing the total amounts to P4 million for first place, P3 million for second place, and P2 million for third place.
Participants perform at the Kasanggayahan Festival.

Sorsogon is celebrating the 50th Anniversary of the Kasanggayahan Festival, that coincides with the 130th Founding Anniversary of the province, and the 455th commemoration of the first mass held in Luzon.

Nagpapasalamat tayo sa naging suporta ng ating mahal na Pangulong Bongbong Marcos at kay First Lady Liza Araneta-Marcos na dumalo dito sa napakahalagang okasyon sa ating minamahal na lalawigan ng Sorsogon. Talagang malayo na ang narating ng Sorsogon at sigurado ako na mas malayo pa ang mararating natin sa darating na panahon,” Mr. Escudero said.
Participants perform at the Kasanggayahan Festival.

Before the competition, Sorsoganons were treated to a concert that featured some of the country’s top artists including Sarah Geronimo, Matteo Gudicelli and Bamboo.


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Straight from the expert: Investment strategies amidst inflation

Patrick Ella, economist at Sun Life Investment Management and Trust Corp.

The Philippine economy has been trending upward since experiencing a pandemic-induced decline in 2020. Growing by 5.7% in 2021, 7.6% in 2022, and 5.6% in 2023, the country’s gross domestic product is expected to continue its expansion by 5.02% to 6.17% this year.

Despite this strong economic showing, the robust performance was accompanied by inflation rates. Since peaking at 8.7% in January 2023, inflation in the country has eased considerably with headline inflation in August 2024 decreasing to 3.3%. This brings the national average inflation from January to August 2024 to 3.6% which keeps it within the government’s goal of 2% to 4% this year.

While inflation has eased, its ripple effects continue to influence not only consumer spending but investment decisions as well. Fluctuating prices can create uncertainty as businesses face increased production costs, which may affect their profit margins and stock performance.

Inflation-Proofing Investments

To help Filipino investors sustain investments in the face of inflation, Sun Life Investment Management and Trust Corp. (Sun Life Investment Management) economist Patrick Ella provides expert advice on strategies to navigate the challenges posed by rising prices. Building on the strong foundation of its well-established parent company, Sun Life of Canada (Philippines), Inc., Sun Life Investment Management is a stand-alone trust corporation duly authorized to conduct business as such by the Bangko Sentral ng Pilipinas.

Serving as the Filipino’s “Partner for Life,” Sun Life Investment Management can customize inflation-proof fund management solutions according to a client’s specific objectives and requirements. Having access to a wide range of investment outlets, the trust corporation provides its clients with well-diversified portfolios suited to their preferences.

With investors aiming to protect their investments from inflation, Mr. Ella shares that one of the primary strategies is to invest in assets that provide a steady stream of returns which helps offset the eroding purchasing power caused by inflation.

“To guard against inflationary effects on investments, it’s recommended to invest in yield or income-producing assets like high-dividend stocks or income payout funds,” Mr. Ella said.

Income-producing assets are investments that generate passive income including dividends paid on shares, rental income from investment properties and real estate, bonds, and interest produced from bank accounts.

Pro Tips against Inflation Pitfalls

Additionally, Mr. Ella warned about several potential pitfalls in investing too conservatively to hedge against inflation. He added that investments that fail to outperform inflation rates can ultimately result in the diminished value of one’s savings.

“If the conservative outlet chosen does not give a meaningful return above inflation, then the net impact on the income-purchasing power of these investments is not compensating investors. So, holding cash in an inflationary environment might not be a good idea unless the cash outlet has a high yield over inflation,’ Mr. Ella said.

Furthermore, he advises investors to diversify their portfolios to minimize the impact of inflation on their overall investment returns. Mr. Ella explains that spreading investments across various high-dividend stocks can help mitigate risks associated with inflation and turn in profit despite rising prices.

“It is best to diversify the risky assets to high-dividend stocks, REITs (Real Estate Investment Trusts), government bonds and corporate bonds, and global funds that offer high dividend strategies and income payout,” he said.

Empowering Filipino Investors

One of Sun Life Investment Management’s core principles is risk management, which they apply through asset diversification, fundamental research and analysis of cash flows, proactive and continuous portfolio monitoring, and active fund management to ensure that their client’s wealth is protected against external shocks and provide Filipinos with confidence and peace of mind.

Hampered by inflation, the Philippine economy is still expected to remain robust due to strong consumer demand, a vibrant labor market, and high remittances. In today’s economic climate, Mr. Ella suggests several promising investment opportunities that can serve particularly as inflation protection for a brighter life.

“For now, given the backdrop of lowering interest rates, government bonds, corporate bonds, and high-quality dividend stock still offer the best outlets for the inflation-fighting investor,” he said.

In addition to these investment insights, Mr. Ella is also passionate about empowering Filipinos to make informed financial decisions. True to the missions of Sun Life Investment Management, he is dedicated to helping Filipinos effectively deploy their funds to achieve financial growth by enlightening them with sound advice, empowering them with innovative investment solutions,

“I’m passionate about investing because it gives me a constant puzzle to be solved, either a client-specific solution or a general market issue. At the moment, the Philippines is breaking to the $4,000 per capita income towards a goal of $5,000 to $7,000 level, which should put us in the camp of fast-growing middle class among global peers. Hence, helping Filipino households and savers deploy funds is even more important than ever,” he said.

With inflation easing, the Philippine economy is once again poised for continued growth in 2024. Through the help of experts like Mr. Ella and trusted brands like Sun Life Investment Management, Filipino investors can gain valuable insights and strategies to effectively ensure that their investments not only withstand inflationary pressures but also capitalize on opportunities that yield revenue.

 


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One Direction singer Liam Payne dead after falling from Buenos Aires hotel balcony

By MTV International - Making The Video: Jonas Blue, Liam Payne & Lennon Stella’s ‘Polaroid’, CC BY 3.0, https://commons.wikimedia.org/w/index.php?curid=73953536

 – Former One Direction singer Liam Payne was found dead outside a hotel in Buenos Aires after the 31-year-old fell from his third-floor room balcony, Argentine police said on Wednesday.

In a statement, the capital police said they were called to the hotel in the capital’s leafy Palermo neighborhood where they were notified of an “aggressive man who could be under the effects of drugs and alcohol.”

The hotel manager said he heard a loud noise at the back of the hotel, and when police arrived they found that a man had fallen over the balcony in his room, the statement said.

Emergency workers confirmed the death of the British singer, who was reportedly found in the hotel’s interior patio.

“I am in shock right now. Liam was always so kind to me,” American singer Charlie Puth said on Instagram. “He was one of the first major artists I got to work with. I cannot believe he is gone.”

U.S. music channel MTV, streaming service Spotify SPOT.N and the BRITs British music awards all expressed their grief on social media, sending their condolences to his family and loved ones.

Mr. Payne had a son named Bear with British TV personality and Girls Aloud singer Cheryl in 2017.

Neither Mr. Payne’s record label Republic Records, nor its owner Universal Music Group, could immediately be reached for comment.

Police had received a call from a worker at the hotel requesting urgent help with an intoxicated guest, according to audio related to the case obtained from the Buenos Aires security ministry.

“When he is conscious he is destroying the entire room and we need you to send someone,” the worker said, adding that the guest’s life was at risk because their room had a balcony.

Emergency responders removed the body from the hotel to take to the morgue, while fans and onlookers who had gathered through the early evening, some hugging each other and crying, burst into applause.

 

CROWD GATHERS TO MOURN BOY BAND STAR

The “For You” singer rose to global fame as part of the since-disbanded pop band One Direction, alongside Harry Styles, Zayn Malik, Niall Horan and Louis Tomlinson.

The boy band got its start after finishing third on the British version of the X Factor music competition show in 2010, but the group broke up in 2016 as its members pursued different projects including solo careers.

One Direction was ranked the third best boy band ever by Entertainment Weekly in 2024. The group won dozens of major awards and sold some 70 million records worldwide, making them one of the best-selling boy bands of all time.

According to Celebrity Net Worth, Mr. Payne’s One Direction and solo career helped garner him a net worth of some $70 million.

Reuters reporters at the scene saw crowds gathering outside the hotel, where dozens of police and emergency services teams had cordoned off an area as night fell on the city.

One 25-year-old fan, Yamila Zacarias, said her family had made a lot of effort so she could see One Direction when they came to Argentina, but she had decided not to go as her parents didn’t have much money then.

“He meant a lot to me because the band came into my life at this time when you’re trying to be a part of something, and being a One Direction fan became that something for me,” she said. “This was the only time I could applaud him.”

Violeta Antier, another fan, told Reuters she had come straight away after he sister told her Payne had died.

“I saw him two weeks ago at a Niall (Horan) concert, another One Direction member. He was there, I saw him,” she said.

“He was ok.”

Mr. Payne had on Oct. 2 attended the Buenos Aires concert of his former bandmate Niall Horan on the Argentine leg of a Latin American tour that spanned Mexico, Brazil, Chile, Peru and Colombia. The two had posted videos together and with fans.

Mr. Payne, who co-wrote many One Direction songs including “Night Changes” and “Story of my Life”, had previously spoken publicly about his struggles with mental health and using alcohol to cope with the pressures of fame.

Last year he published a video to fans on his YouTube channel in which he spoke about his family, making new art and performing again after having given up alcohol. He thanked supporters for sticking with him through difficult times.

Earlier on Wednesday, Payne had appeared to post on Snapchat about his trip in Argentina, talking about riding horses, playing polo, and looking forward to returning home to see his dog.

“It’s a lovely day here in Argentina,” he said in the video. – Reuters

Trump, at Latino event, stands by false claims of immigrants eating pets

Reuters

Republican presidential candidate Donald Trump on Wednesday stood by debunked claims that immigrants in Ohio were eating pets, telling Latino voters during a town hall he was “just saying what was reported.”

Mr. Trump in recent weeks has amplified a false claim that has gone viral that Haitian immigrants in Springfield, Ohio, were stealing residents’ pets or taking wildlife from parks for food.

There have been no credible reports of Haitians eating pets, and officials in Ohio – including Republicans – have repeatedly said the story is untrue.

At a town hall hosted by Spanish-language TV Univision, an undecided Mexican-born Latino Republican voter from Arizona, a battleground state, asked Trump in Spanish whether he truly believed that immigrants were eating pets.

“I was just saying what was reported..And eating other things too that they’re not supposed to be. All I do is report,” Mr. Trump replied during the event held in Miami. “I was there, I’m going to be there and we’re going to take a look.”

Mr. Trump added that “newspapers” had also reported on the claim, without naming any or providing any details.

Mr. Trump, who has not yet traveled to Springfield, has previously said he would conduct mass deportations of Haitian immigrants from the Ohio city, even though the majority of them are in the U.S. legally.

The city has faced bomb threats since Mr. Trump began repeating the false accusations about Haitians.

In the final weeks before the Nov. 5 election, Mr. Trump is increasingly resorting to darker and more violent language about illegal immigration, an issue that opinion polls show resonates with many voters, especially Republicans.

He is competing against Democratic candidate Kamala Harris for key votes from the growing Latino population. Latino voters have typically backed Democrats, but the Trump campaign is hoping to win over more of them, especially men, on the back of economic discontent.

Ms. Harris led Mr. Trump by eight percentage points – 47% to 39% – among Hispanic voters in Reuters/Ipsos polling conducted between Sept. 11 and Oct. 7. Harris held her own Latino town hall last week in Nevada, a battleground state with a significant Hispanic population.

 

TRUMP SIDESTEPS QUESTIONS

At the town hall, Trump sidestepped other questions, including on immigration.

One town hall participant, a Mexican-born California farm worker who spoke of picking strawberries and broccoli for years, asked who would do hard farm labor if Trump goes through with his plans to deport millions of people who are in the United States illegally, and how that would impact food prices.

Mr. Trump did not answer directly and instead claimed African Americans and Hispanic Americans were losing their jobs because of illegal immigration. He also repeated baseless claims that Latin American countries were emptying out mental institutions and jails to send people to the United States.

Mr. Trump has previously used dehumanizing terminology to describe immigrants in the U.S. illegally, calling them “animals” when talking about alleged criminal acts, and saying they are “poisoning the blood of our country,” a phrase that has drawn criticism as xenophobic and echoing Nazi rhetoric.

Another town hall participant, a Florida-based Republican, said he wanted to give Mr. Trump a chance to “win back his vote” given his concerns over the Jan. 6, 2021, Capitol riot and former Trump administration officials turning against the former president.

Thousands of Mr. Trump supporters attacked the Capitol in Washington D.C. that day in a bid to stop formal certification of his election defeat, causing millions of dollars in damage. Four people died on the day of the attack, and one Capitol Police officer who fought against the rioters died the next day.

Mr. Trump gave a lengthy response in which he described Jan. 6 as a “day of love” and said former administration officials who had turned against him were angry about having been fired.

I hope someday maybe we’ll get your vote,” Mr. Trump said as he wrapped up. “Sounds like maybe I won’t, but that’s okay too.” – Reuters

China boosts funds for housing projects to support embattled sector

FREEPIK

 – China will expand a “white list” of housing projects eligible for financing and increase bank lending for such developments to 4 trillion yuan ($562 billion), Minister of Housing and Urban-Rural Development Ni Hong said on Thursday.

Redevelopment of cities will also gather pace, with a million “urban villages” to be included in such plans, Ni said at a press conference, adding that people being resettled will help absorb existing housing inventories.

The pledges for more financing for cash-strapped developers and urban redevelopments are part of a series of measures announced in recent weeks aimed at stabilizing a sector that plunged into crisis in 2021, dragging on broader growth in the world’s second-largest economy.

“It can be said that the bottoming out of the property market has begun,” Mr. Ni told reporters.

In January, China announced a plan for a “white list” of projects that can receive financing to ensure that developers could complete construction and deliver homes to buyers. As of this summer, banks had approved 5,392 such projects, with financing reaching nearly 1.4 trillion yuan.

Approved loans for the “white list” projects had risen to 2.23 trillion yuan as of Oct. 16, Xiao Yuanqi, deputy director of the State Financial Regulatory Administration, said at the press conference.

On Saturday, finance ministry officials also announced measures to prop up the property sector, allowing local governments to use funds from special bonds to buy unsold homes and idle land.

In late September, the central bank announced measures including cuts in the minimum down payment ratio to 15% for all buyers.

Interest rates on existing mortgages are expected to drop by an average half a percentage point, benefiting 50 million households and 150 million residents, Tao Ling, a deputy governor at the central bank, said at the same press conference.

The rate cuts helped households save 150 billion yuan, she said.

Since last year, China had implemented incremental policies to lift home buyer confidence amid concerns about persistently declining home prices, timely deliveries of homes by developers, and the status of their own jobs and incomes in a fragile economy.

In a September meeting, the politburo, a top decision-making body of the ruling Communist Party helmed by President Xi Jinping, called for further measures to stabilize the market. – Reuters

India’s alleged interference in Canada was ‘horrific mistake,’ Trudeau says

PRIME MINISTER JUSTIN TRUDEAU — REUTERS

 – Canadian Prime Minister Justin Trudeau said on Wednesday India made “a horrific mistake” by thinking it could interfere as aggressively as it allegedly did in Canada’s sovereignty.

Mr. Trudeau made the remark two days after Canada kicked out six Indian diplomats, linking them to the murder of a Sikh separatist leader in Canada and alleging a broader effort to target Indian dissidents in the country.

The Canadian leader’s comments were the strongest he has made in a year-long dispute that plunged bilateral relations to a new low.

“The Indian government made a horrific mistake in thinking that they could interfere as aggressively as they did in the safety and sovereignty of Canada,” he told an independent probe into foreign interference in Canadian politics.

In response, India’s foreign ministry issued a terse two-line statement, saying Mr. Trudeau’s deposition confirmed New Delhi’s stand that Canada had provided no evidence to support its allegations against Indian diplomats.

“The responsibility for the damage that this cavalier behavior has caused to India-Canada relations lies with Prime Minister Trudeau alone,” the foreign ministry statement said.

Mr. Trudeau said Ottawa could take further steps to ensure Canadians’ security but declined to give details.

India denies the allegations of interference and has expelled six Canadian diplomats in a tit-for-tat move. – Reuters

Robinsons Land Honors Philippine Business Trailblazers at Asia CEO Awards 2024

A Grand Toast to Business Excellence — RLC executives, together with the Asia CEO judges and winners, marked the occasion with a grand toast by Barun Jolly, Senior Vice President and Business Unit General Manager of Robinsons Hotels & Resorts, reaffirming their shared vision of a collaborative and thriving business community.

Robinsons Land Corporation (RLC), one of the country’s leading property developers, recently took center stage at the 15th Asia CEO Awards as the Title Sponsor, highlighting its dedication to business excellence and the growth of the Philippine economy. Held on October 8, 2024, at the Marriott Grand Ballroom, the event celebrated outstanding companies and leaders driving the nation’s progress.

Honoring Exceptional Leaders and Businesses

Lifetime Awardees Ramon del Rosario (center left) and Hon. Secretary Ralph Recto of the Department of Finance (center right) awarded by Mybelle Aragon-GoBio, President of RLX Logistix and Industrials, Inc. and Senior Vice President and Business Unit General Manager of Robinsons Destination Estates, and joined on stage by the Asia CEO of Panel of Judges (from left-to-right) Don Felbaum, Felino “Jun” Palafox, Dr. Bernie Villegas, Alex Cabrera, Darlene Berberabe, Jack Madrid, and Richard Mills.

A highlight of the evening was the presentation of the Lifetime Contributor Awards. The Honorable Secretary Ralph Recto of the Department of Finance, a distinguished member of the Monetary Board received the Lifetime Contributor Award for the Public Sector. With a political career that includes serving multiple terms in the Senate, where he held roles such as Senate President and Senate Minority Leader, and as a former Socioeconomic Planning Secretary of the National Economic Development Authority (NEDA), his work has made a lasting impact on national development.

The Lifetime Contributor Award for the Private Sector was presented to Ramon del Rosario, Jr., Chairman and CEO of PHINMA Corporation. He is also Chairman of Philippine Business for Education (PBEd) and Vice Chairman of Caritas Manila and PHINMA Foundation. His past roles as Chairman of the Makati Business Club and the Ramon Magsaysay Award Foundation highlight his dedication to business growth, corporate excellence, and education.

Barun Jolly, SVP and Business Unit General Manager of Robinsons Hotels and Resorts, presenting Employer of the Year

This year, 188 individuals and organizations were named Circle of Excellence awardees across various categories, representing the best and brightest of the Philippine business community, showcasing diverse leadership across sectors. The winners are as follows:

Service Excellence Company of the Year – VXI Global Holdings BV Philippines

Governance Organization of the Year – Polytechnic University of the Philippines

Young Leader of the Year – Leonard G. Jabolin of Casapa Livestock Raisers Association, Inc.

IT-BPM TechBlazer of the Year – Macario Solis Fojas of Seven Seven Global Service, Inc.

Entrepreneur of the Year – Chino San Diego of What’s Your Flan International

CSR Company of the Year – SM Foundation

Wellness Company of the Year – Ubisoft Philippines

SME Company of the Year – Angkat PH

Diversity Company of the Year – Shopee Philippines, Inc.

Technology Company of the Year – Citicore Renewable Energy Corporation

Most Innovative Company of the Year – Pili AdheSeal, Inc.

Sustainability Company of the Year – Bank of the Philippine Islands (BPI)

Woman Leader of the Year – Cherrie Atilano of AGREA Agricultural System International, Inc.

CEO of the Year – Sanjeev Kumar Gupta of IBM Solutions Delivery, Inc.

Company of the Year – Concentrix Philippines

Employer of the Year – Gcash

RLC brought a lighthearted moment to the evening by presenting the Leadership in Style Award to Chito Bauzon, Vice President of Marketing and Stakeholder Management at Maybank Philippines, and Michelle Cordero-Garcia, Chief Human Resources Officer at Sun Life Philippines. This award celebrated their combination of executive presence and exceptional style during the evening. As a token of appreciation, they were awarded hotel stays at the 5-star Fili Hotel in NUSTAR Resort Cebu and Holiday Inn Manila Galleria, adding a touch of luxury to their recognition.

Joy de Mesa, Director for Sales and Marketing of Robinsons Hotels & Resorts; and Patricia Mendoza, Assistant Vice President for Corporate Digital Marketing for Robinsons Land, recognized the best-dressed of the evening with the Leadership in Style Award.

Shared Values and Advocacy for National Growth

Robinsons Land’s support for the Asia CEO Awards reflects its advocacy for sustainable development, economic progress, and the spirit of collaboration. For Robinsons Hotels & Resorts, the event was a meaningful way to support industries vital to promoting tourism and hospitality, contributing to national growth.

Robinsons Offices found the awards to be aligned with its mission to provide work environments that empower businesses to thrive and drive the country’s economic engine. The presence of RLX Logistix and Industrials, Inc. signified the importance of seamless logistics and infrastructure in creating an efficient business environment, a key element in the nation’s economic landscape.

Robinsons Destination Estates highlighted the event’s focus on building integrated communities that support business, leisure, and lifestyle emphasizing RLC’s commitment to fostering long-term, sustainable growth for communities across the Philippines.

Robinsons Malls, through its expansive retail developments, supports businesses of all sizes by providing strategic commercial spaces that drive growth for both local and international brands. This reinforces RLC’s commitment to building environments where businesses can thrive and contribute to the country’s economic strength.

Chad Sotelo, Senior Vice President & Business Unit General Manager, RLC Residences and Chief Marketing Officer, Robinsons Land.

“It was an honor to recognize these exceptional individuals and organizations who are helping shape our country’s business landscape. Through partnerships like this, Robinsons Land is committed to supporting innovation, progress, and community-building in every industry.” said Chad B. Sotelo, RLC Chief Marketing Officer, during his Welcome Remarks.

Lance Y. Gokongwei, Chairman, President & CEO of Robinsons Land, shared an inspiring message to the business community and congratulated the winners of Asia CEO.

RLC Chairman, President and CEO, Lance Y. Gokongwei, addressing over 1,000 guests, including industry leaders, entrepreneurs, and professionals, shared, “Let’s support one another—whether through collaboration, mentorship, or partnerships. When we work together, we elevate not just our businesses but our country as a whole. My message to you is simple: stay focused on your mission, be open to learning, and always keep in mind the bigger purpose behind what you do. Together, we can build a better and stronger Philippines.”

Richard Mills of Asia CEO Awards with the RLX Logistix and Industrials team.

The 15th Asia CEO Awards presented by Robinsons Land reaffirmed RLC’s dedication to nurturing a business ecosystem where economic growth and social development go hand in hand. The company’s diverse portfolio serves as a platform to support the country’s vision of being a hub for global enterprises, while also prioritizing shared values and societal impact.

SMEs and top local and global enterprises and leaders gathered to champion business excellence.

For more information, visit www.robinsonsland.com or follow them at their social media channels on Facebook, Instagram and LinkedIn @officialrobinsonsland.

 


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BSP cuts rates for a 2nd straight meeting

Vendors sell vegetables at a market in Quiapo, Manila. — PHILIPPINE STAR/RYAN BALDEMOR

By Luisa Maria Jacinta C. Jocson, Reporter

THE BANGKO SENTRAL ng Pilipinas (BSP) continued its easing cycle with a 25-basis-point (bp) rate cut for a second straight meeting and signaled further cuts ahead.

The Monetary Board on Wednesday trimmed the target reverse repurchase (RRP) rate by 25 bps, bringing the key rate to 6% from 6.25%.

This was also in line with the expectations of 16 out of 19 analysts surveyed in a BusinessWorld poll last week.

Rates on the overnight deposit and lending facilities were also lowered to 5.5% and 6.5%, respectively, which are set to take effect today (Oct. 17).

The central bank has now lowered borrowing costs by a total of 50 bps since it began its easing cycle in August with a 25-bp cut, the first rate cut since November 2020.

BSP Governor Eli M. Remolona, Jr. on Wednesday said that the Monetary Board’s decision is due to its assessment that “price pressures remain manageable.”

“On balance, the within-target inflation outlook and well-anchored inflation expectations continue to support the BSP’s shift toward less restrictive monetary policy,” he said.

“Nonetheless, the monetary authority will continue to closely monitor the emerging upside risks to inflation, including geopolitical factors.”

However, the BSP chief said the balance of risks to the inflation outlook for next year until 2026 has shifted to the upside, citing expectations of higher electricity rates and minimum wages outside Metro Manila.

The central bank slashed its baseline inflation forecast to 3.1% (from 3.4%) for 2024. On the other hand, it raised the inflation projection to 3.2% (from 3.1%) for 2025 and 3.4% (from 3.2%) for 2026.

The risk-adjusted inflation forecast was likewise cut to 3.1% (from 3.3%) for 2024. Projections for 2025 and 2026 were raised to 3.3% (from 2.9%) and 3.7% (from 3.3%), respectively.

BSP Assistant Governor Zeno Ronald R. Abenoja said that the relevant horizon to consider is the inflation outlook for 2025 to 2026.

“For 2025 and 2026, we are seeing a slightly higher, but still within-target inflation averages and the slight uptick is due to higher global oil prices, which we have also observed the past few weeks, as well as some positive base effects in the next 12 months,” he said.

Mr. Abenoja said that inflation may settle slightly below the midpoint of the BSP’s 2-4% target for the rest of the year and the first half of 2025.

“Then we can see inflation picking up by the second half of 2025 but still within target range,” he added.

Headline inflation eased to 1.9% in September from 3.3% in August, its slowest print in over four years, though Mr. Remolona noted that the slower print during the month was primarily due to base effects.

In the first nine months, headline inflation averaged 3.4%.

Meanwhile, Mr. Remolona also said that economic growth is expected to remain strong. Gross domestic product (GDP) averaged 6% in the first half, at the low end of the government’s 6-7% target for the full year.

“This reflects improved prospects for household income and consumption, investments, and government spending, which are supported by the start of the monetary easing cycle in August and the announced reduction in reserve requirements in October,” he added.

‘BABY STEPS’
The BSP chief signaled the possibility of another 25-bp cut at the Monetary Board’s last meeting for the year on Dec. 19.

If realized, this would bring the benchmark rate to 5.75% by end-2024.

However, Mr. Remolona said that a 50-bp cut in December was “unlikely.”

“What would make 50 bps possible would be a scenario in which we see a hard landing, but otherwise that’s too aggressive a cut,” he said.

For 2025, Mr. Remolona said that it was also possible to deliver a total of 100-bp worth of rate cuts.

“An additional 100 bps (after the cuts we will have made in 2024) would be somewhat on the dovish side. It’s possible, but somewhat dovish,” he said.

The central bank will also opt for a more “measured approach” in its easing.

“If we rule out a hard landing, then as I have said, we prefer to take baby steps in terms of adjusting the policy rate. Meaning, 25 bps at a time, but not necessarily every quarter, or not necessarily every meeting,” Mr. Remolona said.

MORE CUTS
Meanwhile, analysts likewise expect further rate reductions for the rest of the year and until 2025.

Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco said he sees “many more rate cuts to come.”

Though headline inflation may breach the 2% mark in October, this will not prevent the BSP from continuing its easing path, he said in a commentary.

“That said, we expect inflation to hug this lower bound for the foreseeable future barring any unexpected shocks, leaving the door wide open for more consecutive rate cuts,” Mr. Chanco said.

“Our current forecasts see average annual inflation falling to 2.4% in 2025 from an estimated 3.2% this year, as the headline rate is anchored by still-subsiding core inflation, reflecting the economy’s relatively sluggish rate of growth,” he added.

Capital Economics assistant economist Harry Chambers likewise said inflationary pressures are seen to remain weak.

“Falling food price inflation and slower growth should keep a lid on inflation,” he said in a report.

Mr. Chambers said that further gradual easing is likely in the next quarters.

“The economic backdrop provides scope for looser monetary conditions. GDP growth slowed in the second quarter on the back of declines in both private consumption and exports,” he said.

“We expect growth to remain subdued on the back of a combination of tighter fiscal policy and weak export demand,” he added.

Mr. Chanco said that the release of third-quarter economic data will be crucial to the BSP’s next monetary policy decision.

Third-quarter GDP will be released on Nov. 7.

“The third-quarter GDP report due in early November likely will induce a greater sense of urgency on the part of the Board, as year-on-year growth probably will fall sharply from the second quarter’s 6.3% pace with base effects turning quite adverse,” he said.

For its part, Pantheon Macroeconomics sees the possibility of 50-bp worth of cuts.

“We continue to believe that the pace of easing will be stepped up to 50 bps each time from the December meeting, until the benchmark rate falls to a terminal level of 4% by the middle of next year,” Mr. Chanco said.

Meanwhile, Capital Economics expects a 25-bp cut in December.

“Our end-2025 interest rate forecast of 4.75% is more dovish than the consensus,” Mr. Chambers said.

Vehicle sales growth slows in September

Vehicles clog the southbound lane of EDSA in Cubao, Quezon City, Aug. 27, 2024. — PHILIPPINE STAR /MIGUEL DE GUZMAN

By Justine Irish D. Tabile, Reporter

PHILIPPINE AUTOMOTIVE sales growth slowed to 2.4% in September, amid flat sales of commercial vehicles, according to an industry report.

A joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) showed vehicle sales rose to 39,542 units in September from 38,628 units in the same month last year.

The 2.4% sales growth in September was the slowest since March when vehicle sales inched up by 1.6%.

Auto Sales (September 2024)Month on month, car sales rose by 1% from the 39,155 units sold in August. 

“The increase can be attributed to new stock arrivals and improved promotions from the brands,” CAMPI President Rommel R. Gutierrez said in a statement on Wednesday.

“There were no new model releases last September, possibly due to the brands’ preparation for the upcoming Philippine International Motor Show in October where we expect new launches will be made,” he added.

September sales were driven by a 9.2% increase in passenger car sales to 10,438 units from 9,558 units sold a year ago. Month on month, passenger car sales went up by 9.54%.

On the other hand, sales of commercial vehicles inched up by 0.1% to 29,104 units in September from 29,070 a year ago. Commercial vehicles accounted for 73.6% of the industry’s total sales.

Month on month, sales of commercial vehicles declined by 1.8%.

Among commercial vehicles, Asian utility vehicle (AUV) sales surged by 43.8% year on year to 7,123 units, while sales of medium trucks grew by 23.4% to 401.

However, sales of light commercial vehicles fell 9.2% to 20,964 units, while sales of light and heavy trucks fell by 11% and 11.1% to 544 and 72, respectively.

For the first nine months of 2024, vehicle sales went up by 9.4% to 344,307 units from 314,843 units a year ago, CAMPI-TMA data showed.

Passenger car sales jumped by 13.4% to 90,765 units in the January-to-September period, while commercial vehicle sales increased by 8% to 253,542 units.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the annual sales growth rate in September was slower than the double-digit growth rates seen a few months ago.

“This may be partly attributed to higher normalizing base or denominator effects and still relatively higher interest rates in recent months,” he said in a Viber message.

“But the year-to-date vehicle sales growth is still faster than the economic growth, which is a bright spot for the economy,” he added.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan attributed the slower growth to seasonal demand.

“Seasonal trends played a role, with sales dipping after August’s promotions, leading to declines in segments like light commercial vehicles and heavy-duty trucks,” said Mr. Limlingan in a Viber message.

“Additionally, the strong sales momentum in August likely pulled forward some demand, resulting in more subdued growth in September,” he added.

Mr. Limlingan said higher interest rates and elevated inflation could have also weighed on consumers’ decisions when making big-ticket purchases like cars.

In the first nine months, Toyota Motor Philippines Corp. remained the market leader with sales of 159,088 units, up by 10.3% from 144,232 units a year ago. Toyota sales accounted for 46.2% of the industry’s total.

Mitsubishi Motors Philippines Corp. ranked second with a market share of 19.18%, as sales jumped by 13.7% to 66,028 units in the first nine months.

In third spot was Ford Motor Co. Phils., Inc. which saw sales drop by 7.2% to 21,438 units. This accounted for 6.23% of the industry.

Rounding out the top five were Nissan Philippines, Inc., whose sales went up by 1.4% to 20,322, while Suzuki Phils., Inc. posted an 11.1% rise in sales to 14,990 units.

CAMPI set a sales target of 500,000 this year. If realized, this will be the industry’s highest annual sales to date and will represent a 16.3% increase from last year’s 429,807 units sold.

PHL needs 8% GDP growth to bring down poverty rate

Informal settlers go about their daily routines in Manila, April 23. The government aims to reduce poverty incidence to 9% by 2028, or at the end of President Ferdinand R. Marcos, Jr.’s administration. — PHILIPPINE STAR/EDD GUMBAN

By Beatriz Marie D. Cruz, Reporter

THE PHILIPPINE ECONOMY needs to grow by an average of 8% annually to achieve its goal of bringing down poverty incidence to single digits by 2028, an economist said.

“I am confident that the 6-7% growth can be maintained over the next four to five years,” University of Asia and the Pacific Center for Research and Communication Director for Research Bernardo M. Villegas said at a briefing on Thursday.

“But that is not enough to bring us to a single-digit poverty incidence by 2028. We have to grow at least 8% GDP (gross domestic product) wise,” he said.

The government aims to reduce poverty incidence to 9% by 2028, or at the end of President Ferdinand R. Marcos, Jr.’s administration.

Economic managers have set a 6-7% GDP growth target this year and 6.5-7.5% next year. It also expects 6.5-8% GDP growth until 2028.

“I don’t expect that to immediately happen this year, for example. So, we should build that up… you will have President [Marcos] laying the foundation for the next president to be able to actually start growing at 8%,” Mr. Villegas said.

The Philippines’ poverty rate fell to 15.5% in 2023 from 18.1% in 2021.

Mr. Villegas noted that the Philippines has one of the highest poverty rates among Association of Southeast Asian Nations (ASEAN) countries.

Laos (32.5%) and Indonesia (18.1%) had the highest poverty incidence in ASEAN, according to the World Bank’s Poverty and Inequality Platform. Vietnam (4.2%), Thailand (0.6%) Malaysia (0.1%), have recorded a single-digit poverty rate last year.

To support growth, the agricultural sector must grow by around 3-4% every year, Mr. Villegas said.

Agricultural production, which contributes about a tenth to GDP, declined by 3.3% in the second quarter, the biggest drop since the 3.4% contraction in the first quarter of 2021.

Mr. Villegas also said the government must address the low investment-to-GDP ratio.

“Ours is in the low 21-22% and the main reason is we have the lowest savings rate in this region. We save only 9% of our GDP,” he said.

In contrast, East Asian countries have an investment-to-GDP ratio ranging between 25% and 40%, Mr. Villegas said.

The government must also address corruption to bolster growth, he said.

“Corruption leads to leakage of P800 billion a year. If we can reduce that, then that will add to the 8% growth.”

The Philippines ranked 115th out of 180 countries in the 2023 Corruption Perceptions Index, up one spot from 116th in 2022.

MANUFACTURING
Meanwhile, Mr. Villegas said the Luzon Economic Corridor will help expand the country’s manufacturing sector.

“If the Americans and Japanese succeed in building the Luzon Economic corridor, our semiconductor and chips factories will grow double-digit,” he said.

The Luzon Economic Corridor is being undertaken through a trilateral agreement among the Philippines, United States, and Japan. It aims to strengthen connectivity in major areas in Luzon, namely, Metro Manila, Batangas, Subic, and Clark.

Growth in the manufacturing sector can be bolstered by the production of semiconductors and chips, Mr. Villegas said.

“The so-called Industrial Revolution 4.0, artificial intelligence, robotics, internet of things, data, will not be possible without chips. So, everything now will depend on those chips, and if we become a superpower in chips, that is manufacturing.”

PHL’s economic freedom improves

A Philippine flag is seen at the Emilio Aguinaldo National Shrine in Kawit, Cavite, June 12. — PHILIPPINE STAR/EDD GUMBAN

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINES’ RANKING jumped nine spots in a global index on economic freedom due to higher scores in trade freedom and property rights, according to the Canada-based think tank Fraser Institute.

The country placed 59th out of 165 economies in the conservative think tank’s Economic Freedom of the World index which uses 2022 data. Its ranking improved from 68th place in the previous index which used 2021 data.

This was the Philippines’ highest placement since it ranked 57th in 2016.

Philippines’ Economic Freedom improved in 2022

The country received a score of 7.01 out of 10, a tad higher than the revised 6.93 in 2021. Its latest score was higher than the global average of 6.56.

Among Asia-Pacific jurisdictions, the Philippines lagged behind Hong Kong (8.58), Singapore (8.55), New Zealand (8.39), Australia (7.98), Japan (7.90), Taiwan (7.71), Malaysia (7.56), and South Korea (7.52).

However, the Philippines was ahead of Brunei Darussalam (6.99), Indonesia (6.96), Thailand (6.94), Mongolia (6.86), Cambodia (6.85), Vietnam (6.23), China (6.14), Papua New Guinea (6.02), Fiji (5.99), Laos (5.86), Timor-Leste (5.77), and Myanmar (4.54).

The Philippines had its highest score in the sound money category with 9.04, ranking 11th out of the 164 other countries. But it was down from 9.51 in 2021.

The country — yet again — performed worst in legal system and property rights with a score of 4.51, slightly higher than 2021’s 4.49.

The Philippine score in size of government declined to 7.83 from 7.91 in 2021. Among subcategories, it scored 8.83 in government investment and 6.91 in government consumption.

“The lesson from this is clear: a small fiscal size of government is insufficient to ensure prosperity,” Fraser Institute said. “The other areas of economic freedom — the rule of law and property rights, sound money, trade openness, and limited regulations — are also required.”

Manila’s score in the freedom to trade internationally category rose to 7.14 from 6.53 in 2021.

Its score in regulation slipped to 6.51 from 6.62 in 2021. Among sub-categories, the Philippines had its lowest score at 4.59 in business regulation and the highest score at 8.27 in credit market.

Leonardo A. Lanzona, an economics professor at the Ateneo de Manila University, said fiscal consolidation remains a key problem for the government’s economic policy.

It leads to “too much intervention in the markets,” he said in a Facebook Messenger chat.

Finance Secretary Ralph G. Recto in September said the Marcos government was on track with its medium-term fiscal consolidation program even as its debt remained at a record high due to pandemic-related loans.

“There is limited participation from the private sector as much of the economic growth is due to government spending,” Mr. Lanzona said. “Instead of the government spending directly, they should create the environment that allows greater public sector participation.”

Hong Kong topped the economic freedom index, followed by Singapore, Switzerland, New Zealand, the United States, Denmark, Ireland, Canada, Australia, and Luxembourg.

At the bottom of the list was Venezuela, followed by Zimbabwe, Sudan, Syria, Algeria, Myanmar, Argentina, Iran, Libya and Yemen.

The think tank said Ukraine (-0.94) and Moldova (-0.63) — the two nations that have either been invaded (Ukraine) or threatened militarily — saw the largest declines in ratings between 2021 and 2022.

The rating for Russia was also down (-0.30). “It may be obvious to point out, but war is very bad for economic freedom,” the think tank said.

Another important development in the index was the declining condition of Hong Kong, whose rating fell “precipitously” to 8.58 in 2022 from 9.05 in 2018.

“This is nearly half a standard deviation decline in just four years,” it said. “Thus, we continue to sound the alarm bell about signs of declining economic — and other — freedoms in Hong Kong.”

Sonny A. Africa, executive director of IBON Foundation, said the conservative index’s metrics “come from a narrow prioritization” of market freedoms and property rights, which “don’t align with a broader and more inclusive understanding of economic well-being and development.”

“This is why the so-called economic freedom scores are so inconsistent with the economic realities faced by the majority of Filipinos who remain poor and marginalized,” he said via Messenger chat.

Mr. Africa said the government’s fiscal consolidation was “evident in the distribution of the country’s declining score in size of government.”

“The relatively high score in government investment reflects the persistent emphasis on corporate-friendly infrastructure and pork barrel hard projects, while the lower government consumption reflects insufficient social services and safety nets,” he said.

“The increase in the score in the freedom to trade internationally category merely reflects continued liberalization that has worked so much against domestic agricultural and industrial development for decades,” he added.

Mr. Africa said the country’s nine-notch improvement in the index was “inconsistent” with important social indicators on a trajectory of decline.

The number of self-rated poor Filipino families has increased to 16.3 million or 59% of total families in September, while the number of households without savings rose to 19.2 million or 71% of total households in the third quarter, Mr. Africa explained, citing data from the Social Weather Stations and the central bank.

While the Philippines was ahead of Indonesia, Thailand, Vietnam, Laos, and Myanmar in the index, it has “much worse food insecurity than all these,” he said.

Mr. Africa cited a United Nations Food and Agriculture Organization report indicating that the Philippines has 44.1% of its total population suffering moderate or severe food insecurity, “which is more than the food insecurity of Indonesia (4.9%), Thailand (7.2%), Vietnam (10.8%), Laos (36.3%), and Myanmar (32%).”

“The Fraser Institute’s index focuses narrowly on market-oriented indicators such as trade freedom, property rights, and business regulation which are presumed to improve the economy,” Mr. Africa said. “In practice, these measures favor a deregulated economy that benefits large corporations and wealthy individuals at the expense of broader social development outcomes.”

In the report, the Fraser Institute noted that high-income industrial economies generally rank quite high for legal system and property rights, sound money, and freedom to trade internationally.

Their ratings were lower, however, for the size of government and regulation.

PHL hotels target 120,463 more rooms by 2028

DISCOVERY HOSPITALITY PROPERTY MANAGEMENT

THE PHILIPPINE hotel industry hopes to bridge the 120,463-room gap by 2028 to meet the 456,055-room demand.

The room supply currently stands at 335,592, according to the Philippine Hotel Industry Strategic Action Plan (PHISAP) 2023-2028, launched by the Department of Tourism (DoT) and the Philippine Hotel Owners Association, Inc. (PHOA) on Wednesday.

The roadmap aims to boost competitiveness, promote sustainable development, and support the expansion of the hotel sector.

“Our government is laying the groundwork to establish green lanes for strategic investments aimed at fast-tracking critical infrastructure projects, including those in tourism,” Tourism Secretary Ma. Esperanza Christina G. Frasco said during the launch.

Green lanes in government offices expedite permits and licenses for critical investment projects.

This is “coupled with an improved PPP (Public-Private-Partnership) law, as well as an expanded CREATE (Corporate Recovery and Tax Incentives for Enterprises) law and public-private partnerships to enhance airport facilities and improve transport services,” Ms. Frasco added.

The CREATE MORE bill seeks to impose a 20% corporate income tax on local and foreign corporations under the enhanced deduction income tax regime.

Ms. Frasco added that the DoT continues to work with local government units to stress the necessity of creating a business-friendly environment for investments.

“We’re hopeful that we will be able to address this gap by way of the PHISAP, on one hand, which is a framework for hotel infrastructure development, as well as all the supporting legislation and policies of the Marcos administration that encourage investment, as well as public-private partnerships,” she said.

Leechiu Property Consultants, Inc. (LPC) said in its third-quarter report that the Philippines is expected to surpass 2023’s foreign arrival numbers of 5.5 million but fall short of the 7.7 million target for this year.

LPC said the foreign tourist arrivals reached 4.4 million in the first three quarters of 2024, up from four million in the same period last year.

According to the 2024 Philippine Accommodation Pipeline Report by PHOA and LPC, private sector hotel developers have committed to 158 new accommodation projects, totaling 40,084 rooms and generating P250 billion in investments. — Aubrey Rose A. Inosante