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Myanmar civil war fuels surge in cross-border drug trade, Thailand official says

STOCK IMAGE | Image by Dee from Pixabay

BANGKOK, – Thailand has seen a surge in illegal drugs trafficked from neighboring Myanmar and a sharp increase in methamphetamines and heroin seizures, as a civil war adds fuel to the regional drug trade, a senior Thai counter-narcotics official said.

Apikit Ch.Rojprasert, deputy secretary-general of Office of the Narcotics Control Board (ONCB), said the northern region remains the main trafficking route into Thailand, with dealers going through the mountains or on the Mekong river to bring in methamphetamine tablets and crystal meth, also known as ice.

Thai authorities say organized crime networks have allied with militias and rebel groups to set up “super labs” in Myanmar’s Shan and Kachin States.

A junta spokesperson declined to comment for this story but Myanmar’s ruling junta has previously said it is committed to working with neighboring countries to tackle narcotics.

“Because of the armed conflict, the drug trade is one of the factors used to fund weapon purchases or drive the fighting forces,” Mr. Apikit told Reuters in an interview.

“We have to be vigilant about crimes that are linked to drug trafficking and work with neighboring countries.”

Myanmar is locked in a civil war, with the military fighting on multiple fronts and losing territory to an armed resistance movement loosely allied with several ethnic minority rebel groups. The military took over the Myanmar government in 2021.

Seizure of meth tablets in the first eight and a half months of this year in Thailand’s northern provinces of Chiang Mai, Chiang Rai and Mae Hong Son increased by 172% from the amount seized in all of 2023 to 346 million pills, ONCB data showed.

Seizure of crystal meth in those provinces increased by 39% over the same period to 6.48 tons, the data showed.

Heroin is also making a comeback with 327 kg (721 lb) seized this year, nearly seven times the amount seized in 2023.

 

STREET PRICE SLUMP

The political unrest in Myanmar has led to a surge and expansion of synthetic drugs production and trafficking as well as a resurgence of opium cultivation, according to United Nations Office on Drugs and Crime.

Despite the increase in seizures, the price of meth pills continues to fall in Thailand, suggesting far more volumes were eluding authorities than being stopped, Mr. Apikit said.

The average price of a meth tablet in Thailand was about 25- 30 baht ($0.78-$0.93), he said, compared with 80 baht ($2.49) in 2017 and was 200 baht ($6.21) in 2013.

General Narit Thanwornwong, commander of Thailand’s drug suppression unit in the northern border told Reuters his task force believed more than 50 million meth pills were waiting to be trafficked into Thailand.

He said only some armed groups fighting the Myanmar junta were involved in drug trafficking, while other organizations not party to the conflict were involved in production and trade.

The drug seizure in the three northern Thai provinces have all surged since the 2021 coup in Myanmar, with crystal meth increasing by 284%, amphetamine tablets by 201% and heroin by 77%, ONCB data showed. – Reuters

Taiwan shuts down for Typhoon Krathon, torrential rain forecast

XANDREASWORK-UNSPLASH

KAOHSIUNG, Taiwan – Taiwan shut down on Wednesday, grounding hundreds of flights and closing schools, offices and financial markets ahead of the arrival of a weakening Typhoon Krathon, forecast to lash the coast with storm surges and torrential rain.

Officials in the key port city of Kaohsiung, set to be in the eye of the storm, told people to stay home and avoid the sea, rivers and mountains, warning of a repeat of 1977’s Typhoon Thelma that killed 37 and devastated the city of 2.7 million.

Although the typhoon has weakened, the threats from a storm surge, strong winds and rain remain as it slowly makes its way towards Taiwan’s coast, weather forecasters said.

The typhoon would lose power once it hit land, said Kaohsiung mayor Chen Chi-mai, but would still bring intense winds and rain.

“But if it moves north, the winds will strengthen again, so the threat to Kaohsiung will continue to exist, and people cannot take this lightly,” he told reporters.

All the island’s cities and counties declared a day off, shutting financial markets .TWII and cancelling domestic flights, along with 246 international ones, while more than 10,000 people were evacuated, mostly in the south and east.

Typhoons often hit Taiwan’s mountainous and sparsely populated east coast facing the Pacific, but Krathon is set to make landfall on its flat western plain.

It is forecast to hit between Kaohsiung and its neighbouring city of Tainan in the early hours of Thursday, before heading northeast up towards Taipei, the capital, the Central Weather Administration (CWA) said.

“Because of Typhoon Gaemi being quite severe earlier this year, everyone is more cautious and prepared this time around,” said sales representative Yu Ren-yu, 35, picking up sandbags at a government office, referring to July’s storm that killed 11.

“First be prepared, then we can face this typhoon.”

The typhoon has revived the older generation’s bad memories of Thelma, prompting extra precautions, said Chou Yi-tang, a government official working in the Siaogang district home to the airport.

“We were hit directly by the eyewall,” he added, describing events almost five decades ago. “Power was out for two weeks and no water for almost a month. It was disastrous.”

More than 700 sandbags have been distributed in his district, a record for a typhoon, while authorities are making more to meet demand, Chou said.

Taiwan’s defence ministry said it had put more than 38,000 troops on standby.

The fire department reported 46 injuries, mostly in the mountainous eastern county of Taitung, with one person missing in the central county of Yunlin.

The north-south high speed rail line stayed open, but scaled back services.

TSMC, the world’s largest contract chipmaker and a major Apple and Nvidia supplier, said on Tuesday it did not expect the typhoon would have a significant impact on operations.

TSMC’s factories are along the west coast, some in the city of Tainan. – Reuters

Iran says attack on Israel is over as fears grow of wider conflict

Israeli and Iranian flags are seen in this illustration taken, April 24, 2024. — REUTERS/DADO RUVIC/ILLUSTRATION

JERUSALEM/BEIRUT – Iran said early on Wednesday that its missile attack on Israel was over barring further provocation, while Israel and the US promised to retaliate against Tehran as fears of a wider war intensified.

Washington said it would work with longtime ally Israel to make sure Iran faced “severe consequences” for Tuesday’s attack, which Israel said involved more than 180 ballistic missiles.

The United Nations Security Council scheduled a meeting about the Middle East for Wednesday, and the European Union called for an immediate ceasefire.

“Our action is concluded unless the Israeli regime decides to invite further retaliation. In that scenario, our response will be stronger and more powerful,” Iranian Foreign Minister Abbas Araqchi said in a post on X early on Wednesday.

Israel renewed its bombardment early on Wednesday of Beirut’s southern suburbs, a stronghold of the Iran-backed armed Hezbollah group, with at least a dozen airstrikes against what it said were targets belonging the group.

Large plumes of smoke were seen rising from parts of the suburbs. Israel issued new evacuation orders for the area, which have largely emptied after days of heavy strikes.

 

IRAN’S BIGGEST ATTACK ON ISRAEL

Iran’s attack marked it biggest ever military blow against Israel.

Sirens sounded across the country and explosions rattled Jerusalem and the Jordan River valley as the entire population was told to move into bomb shelters.

No injuries were reported in Israel, but one man was killed in the occupied West Bank, authorities there said.

Iran described the campaign as defensive and solely aimed at Israeli military facilities. Iran’s state news agency said three Israeli military bases had been targeted.

Tehran said its assault was a response to Israeli killings of militant leaders and aggression in Lebanon against Hezbollah and in Gaza.

Israel activated air defenses against Iran’s bombardment and most missiles were intercepted “by Israel and a defensive coalition led by the United States,” Israeli Rear Admiral Daniel Hagari said in a video on X, adding: “Iran’s attack is a severe and dangerous escalation.”

Israeli Prime Minister Benjamin Netanyahu vowed to hit back.

“Iran made a big mistake tonight – and it will pay for it,” he said at the outset of an emergency political security cabinet meeting late on Tuesday, according to a statement.

Iran’s General Staff of the Armed Forces said in a statement carried by state media that any Israeli response would be met with “vast destruction” of Israeli infrastructure. It also said it would target regional assets of any Israeli ally that got involved.

Fears that Iran and the US could be drawn into a regional war have risen with Israel’s growing assault on Lebanon in the past two weeks, including the start of a ground operation there on Monday, and its year-old conflict in the Gaza Strip.

Iran’s forces on Tuesday used hypersonic Fattah missiles for the first time, and 90% of its missiles successfully hit their targets in Israel, the Revolutionary Guards said.

Israel’s Hagari said central and southern Israel received limited strikes. A video released by the military showed a school in the central city of Gadera heavily damaged by an Iranian missile.

US Navy warships fired about a dozen interceptors against Iranian missiles headed toward Israel, the Pentagon said. Britain said its forces played a part “in attempts to prevent further escalation in the Middle East”, without elaborating.

US President Joe Biden expressed full US support for Israel and described Iran’s attack as “ineffective.” Vice President Kamala Harris, the Democratic candidate for U.S. president, backed Mr. Biden’s stance and said the US would not hesitate to defend its interests against Iran.

“We will act. Iran will soon feel the consequences of their actions. The response will be painful,” Israel’s U.N. Ambassador Danny Danon told reporters.

 

US DOES NOT URGE RESTRAINT

The White House similarly promised “severe consequences” for Iran and spokesman Jake Sullivan told a Washington briefing the US would “work with Israel to make that the case.”

Mr. Sullivan did not specify what those consequences might be, but he stopped short of urging restraint by Israel as the U.S. did in April when Iran carried out a drone and missile attack on Israel. The Pentagon said Tuesday’s airstrikes by Iran were about twice the size of April’s assault.

U.N. Secretary-General Antonio Guterres condemned what he called “escalation after escalation”, saying: “This must stop. We absolutely need a ceasefire.”

French President Emmanuel Macron said in a statement that he strongly condemns Iran’s new attacks on Israel, adding that in a sign of its commitment to Israel’s security it mobilized its military resources in the Middle East on Wednesday.

Mr. Macron reiterated France’s demand that Hezbollah cease its terrorist actions against Israel and its population, but also wished for Lebanon’s sovereignty and territorial integrity to be reinstated in strict compliance with a United Nations Security Council resolution.

EU foreign policy chief Josep Borrell also called for an immediate regional ceasefire. “The dangerous cycle of attacks and retaliation risks … spiraling out of control,” he posted on X.

British Prime Minister Keir Starmer spoke with the leaders of Germany and France, and they agreed on a need for restraint from all sides, Downing Street said.

Nearly 1,900 people have been killed and more than 9,000 wounded in Lebanon in almost a year of cross-border fighting, most in the past two weeks, according to Lebanese government statistics on Tuesday. – Reuters

The PENSHOPPE Group wins first-ever Retail Employer Award

GOLDEN ABC’s Senior and Junior Management Team at the Outstanding Filipino Retailers Awards Night

While the awards have been around since 1997, the Retail Employer Award was first introduced at the 2024 Outstanding Filipino Retailers (OFR) Awards Night — with the PENSHOPPE Group being the inaugural winner

The Penshoppe Group — formally GOLDEN ABC, Inc. (GABC) — was conferred with the first-ever Retail Employer Award at the Outstanding Filipino Retailers (OFR) Awards on Sept. 25 at the Solaire Resort North. The said accolade was introduced in an endeavor to recognize retail employers who are committed to fostering a positive and inclusive workplace. As such, the criteria for judging encompassed people development initiatives, employee engagement and satisfaction, innovative HR practices, corporate social responsibility (CSR) and community engagement, workplace diversity and inclusion, and employee benefits and well-being.

VP for Strategy & Operations Bryan Liu delivering the acceptance speech for the Retail Employer of the Year on behalf of GOLDEN ABC

“As a company, the Penshoppe Group holds ourselves to the highest standard of excellence in our ways of working, serving our customers and the community, and building a values-centric organization that nurtures a culture of integrity, continuous learning, and innovation,” said Bryan Liu, GABC VP for Strategy and Operations, upon receiving the accolade during the OFR Awards Night.

“We are grateful for this validation of all our efforts, but at the same time, we recognize the weight of the responsibility the award brings. While we continue to upskill, train, and empower our people to develop their professional talents in the retail industry, we are reminded to never lose sight of what ultimately drives us, and that is our purpose to inspire greatness in anyone and everyone, and this includes the whole of Team GABC, whose lives we touch and change for the better,” he added.

The awarding body likewise considered how GABC’s people development initiatives have impacted the growth and advancement of its people, as well as how its employee engagement activities have fostered a fulfilling work environment. The ways in which GABC’s HR and CSR practices have shaped its business practices were likewise lauded with the conferment of the award.

“Since our founding nearly 40 years ago, we have always believed that the better we perform as a business, the more good we can do as a company. This reflects in the programs we provide our people with, as well as the initiatives we do for the community. After all, our successes are borne out of the hard work and commitment of our people,” said GABC President and COO Alice Liu.

Under her leadership, Liu placed focus on operational innovation, employee engagement, and organizational development. This prioritization has been a strategic and deliberate decision by Liu whose practices are informed by other positions she holds across key business organizations. On top of serving as GABC’s president, Liu is a Board Director and Vice-President of the Philippine Retailers Association, board member of the Philippine Franchise Association, and a member of the Makati Business Club.

In its efforts to boost employee morale and engagement, GABC mounts regular town hall and service award events.

Through her leadership, Liu says GABC will remain focused on importing even more talent and toolboxes that will enable GABC to succeed in what she anticipates will still be a disruptive industry.

“As we continue to work toward our vision of building brands for the world, we will strengthen our core values that will guide us with our behavior and decisions. Likewise, the skills and training that we provide our people will keep becoming more sophisticated and advanced, so these will be commensurate with the goals we have set to achieve. While we relentlessly develop talent internally, we will also continue to bring in new talents whose tools and practices can help us improve and reinvent how we serve our customers — not just in the Philippines but across the globe,” said Liu.

The OFR Awards was established in 1997 by the Philippine Retailers Association (PRA) and the Department of Trade and Industry (DTI) to celebrate excellence in the Philippine retail industry. The annual awards ceremony aims to put the spotlight on retail enterprises whose successes demonstrate unique growth, creativity, and business practices. The OFR also serves as a venue to recognize retailers who possess a unique business acumen that make them stand out in the ever-evolving landscape of retail.

 

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Gogolook taps APC to promote safe mobile device use for students

In photo (from left to right): Gogolook Chief Operating Officer (COO) Manwoo Joo; True Money Philippines Managing Director and President Manny Cabanero; APC Academic Services Director Josphine dela Cuesta; WiSAP Board of Trustee and Treasurer Portia Alfonso; and Gogolook Country Head Mel Migriño

The world’s leading TrustTech company, Gogolook, has signed a new Memorandum of Understanding (MoU) with Asia Pacific College (APC) to launch a joint anti-scam campaign.

According to Gogolook Philippines Country Head Mel Migriño, the joint campaign aims to promote the safe use of mobile devices and the protection of personal information for students.

“Thus, increasing the cyber hygiene of each digital user. As such include the topic of scams and fraud in cybersecurity subjects to further increase the awareness of students and ways on how to respond,” Ms. Migriño said.

This initiative will include digital campaigns and ads, online events and webinars, as well as in-school events, where topics on scams and fraud will be discussed.

“Gogolook to provide a Whoscall mobile application — Basic Premium Package to the students, faculty members and staff of APC throughout the duration of this MoU,” Ms. Migriño said.

With this privilege, users can access automated features of Whoscall, such as automatic database updates, blocking spam calls, and URL scanning.

The ceremonial signing took place during the launch of #DapatAllMagWhoscall, a campaign advocating for online safety practices, which can be achieved in part by using the Whoscall app, in BGC, Taguig City.

APC Academic Services Director Josephine dela Cuesta expressed gratitude toward Gogolook, saying, “This partnership will bring great results, particularly in enhancing the online safety of our students, leading to their better performance academically.”

Meanwhile, on the sidelines of the event, APC IT Head Jojo Castillo emphasized the importance of partnership.

“Asia Pacific College is in the business of education, and it’s crucial to ensure that students are in the right mindset to learn and absorb everything,” Mr. Castillo said.

“By partnering with Whoscall, we hope to provide the entire student body with peace of mind, allowing them to feel at ease while learning. They will know that their environment is safe and that APC, Asia Pacific College, supports their mental well-being,” he added.

Furthermore, part of the agreement includes appointing student ambassadors who will promote advocacy to combat scams and fraud while encouraging the use of the Whoscall app as a protective technology tool.

“This initiative will help extend the Anti-Scam Campaign to schools and universities by showcasing the joint efforts of Gogolook and APC and by working with regulators in the academic sector,” Ms. Migriño concluded.

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Inflation likely below 3% in Sept. — BSP

People look to buy vegetables at a market stall in Quiapo, Manila, Sunday. — PHILIPPINE STAR/RYAN BALDEMOR

By Luisa Maria Jacinta C. Jocson, Reporter

INFLATION likely eased below 3% in September, the Bangko Sentral ng Pilipinas (BSP) said, as food and fuel costs declined.

The central bank’s month-ahead forecast showed that inflation likely settled within the 2-2.8% range.

This would be slower than 3.3% in August and 6.1% a year ago.

A BusinessWorld poll of 15 analysts conducted last week yielded a median estimate of 2.5% for the September consumer price index (CPI). This would also be the slowest print in nearly four years or since 2.3% in October 2020.

“Negative base effects along with lower prices of food commodities including rice, meat and vegetables, as well as lower domestic oil prices, and the appreciation of the peso are the primary sources of downward price pressures for the month,” the BSP said in a statement.

The Philippine Statistics Authority (PSA) will release September inflation data on Friday (Oct. 4).

“Recent available data from the Department of Agriculture and PSA indicate a decline in rice prices from last month, especially with the continuous implementation of the reduction in tariffs on imported rice and the decline in global rice prices,” Metropolitan Bank & Trust Co. (Metrobank) said in a report.

An executive order, which slashed tariffs on rice imports to 15% from 35% until 2028, took effect in July.

In August, rice inflation eased to 14.7% from 20.9% in July. Rice typically accounts for nearly half of overall inflation.

Metrobank expects rice inflation hitting single-digit levels, possibly at around 6%, amid high base effects.

De La Salle University economist Mitzie Irene P. Conchada said the decline in fuel prices would also bring down the prices of other key commodities.

“Inflation for September is expected to slow down due to lower fuel prices. Because of this, food and other basic commodity prices have stayed the same or lower,” she said in an e-mail.

In September, pump price adjustments stood at a net decrease of P0.95 a liter for gasoline, P2.10 for diesel and P2.35 for kerosene.

The peso appreciated by 8.1 centavos to P56.03 a dollar at end-September from its P56.111 finish at end-August.

The central bank said lower food and fuel prices likely offset the higher prices of fish, fruits and electricity.

“Fish prices this month went up due to supply disruptions brought on by inclement weather,” Metrobank said.

“Inclement weather brought about by the southwest monsoon disrupted the supply of agricultural commodities, driving select vegetable prices up. With lowland vegetables like ampalaya, eggplants and carrots the most affected, prices of some highland vegetables also increased,” it added.

For September, Manila Electric Co. (Meralco) raised the overall rate by P0.1543 per kilowatt-hour (kWh) to P11.7882 per kWh from P11.6339 per kWh in the previous month.

Meanwhile, the BSP said the Monetary Board “will continue to take a measured approach in ensuring price stability conducive to balanced and sustainable growth of the economy and employment.”

The improving inflation path would give the BSP room to continue its policy reductions, Metrobank said.

“This also provides more space for the central bank to deliver two more 25-basis-point (bp) cuts each at the remaining Monetary Board meetings this year to help economic growth as inflation slows,” it said.

The Monetary Board’s next meeting was rescheduled to Oct. 16 from Oct. 17. Its final meeting for the year is set for Dec. 19.

BSP Governor Eli M. Remolona, Jr. on Monday said there is scope to cut interest rates by 50 bps in one meeting, but this would only be done in a “hard-landing” scenario.

If there is no risk of a hard landing, he noted the likelihood of delivering 25-bp rate cuts during each of the two remaining meetings.

In August, the central bank reduced borrowing costs for the first time in nearly four years, cutting its policy rate by 25 bps to 6.25% from the over 17-year high of 6.5%.

Factory activity at 2-year high in Sept.

Workers are seen inside a manufacturing facility in Sto. Tomas, Batangas in this file photo. — PHILIPPINE STAR/KJ ROSALES

PHILIPPINE MANUFACTURING ACTIVITY continued to expand in September, hitting its highest in two years and outperforming its peers in Southeast Asia, S&P Global said in a report.

The Philippine Manufacturing Purchasing Managers’ Index (PMI) rose to 53.7 in September, from 51.2 in August. It was the fastest reading since the 53.8 clip in June 2022.

“The Filipino manufacturing sector showed a significant improvement at the end of the third quarter, as indicated by the latest PMI data,” Maryam Baluch, economist at S&P Global Market Intelligence, said in a report.

Manufacturing Purchasing Managers’ Index (PMI) of select ASEAN economies, September 2024An above 50 PMI reading shows better operating conditions than in the last month.

The Philippines’ PMI — a composite single-figure indicator of manufacturing performance — has posted an above 50 reading every month since September 2023.

The Philippines’ PMI reading was the highest among five Association of Southeast Asian Nations (ASEAN) countries in September. It was ahead of Thailand, which posted a 50.4 reading.

On the other hand, Malaysia (49.5), Indonesia (49.2), Vietnam (47.3) and Myanmar (45.5) showed contractions.

Philippine PMI was also above the region’s average of 50.5, S&P Global said.

The headline PMI measures manufacturing conditions based on the weighted average of five indices — new orders (30%), output (25%), employment (20%), suppliers’ delivery times (15%) and stocks of purchases (10%).

S&P Global said the strong expansion in new orders fueled a rise in production volume, which also boosted hiring and purchasing activity.

“The respective seasonally adjusted indexes signaled a quicker pace of growth on the month, ticking up to a 20- and 10-month high, respectively. Anecdotal evidence pointed to improving underlying demand trends, new client wins and the successful launch of new products,” it said.

Despite the increase in new orders, Ms. Baluch noted that demand for Filipino goods have dropped “notably” in international markets.

New export orders for Filipino goods have dropped for a second straight month in September, “with the latest downturn the most severe in over four years,” S&P Global said.

“While weak international demand and supply-chain issues will act as headwinds, robust domestic demand is expected to drive growth,” Ms. Baluch noted.

S&P Global said manufacturers increased their hiring and purchasing activities in September to cope with the overall rise in new orders.

“The rate of employment growth, though modest, was the strongest since March. Nonetheless, growing levels of new work fed through to a rise in backlogs of work in September, thereby marking a first month of accumulation since May 2023,” S&P Global said.

In September, buying activity hit a 20-month high, as some firms expect more sales in the next few months and “to protect themselves from predicted supply-chain disruptions.”

However, S&P Global noted the drop in vendor performance was also the biggest since December 2022.

“Inflationary pressures also intensified in September, with firms attributing this to higher supplier prices and weather events,” it said, adding that the rate of input price inflation rose to a seven-month high.

“Price pressures also rose due to supplier charge increases and recent weather events affecting raw material costs. However, inflationary pressures remain historically subdued, which supports the central bank’s recent decision to ease monetary policy,” Ms. Baluch said.

Looking ahead, firms remained confident of the manufacturing sector’s performance in the coming months, with their confidence level the highest since May.

Manufacturers also expect demand trends will still improve, which will support production growth.

“Operational efficiencies and a better interest rate environment might have contributed to improved manufacturing performance,” Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said in a Viber message.

In August, the Monetary Board cut interest rates for the first time in nearly four years. It reduced the benchmark rate by 25 basis points to 6.25% from the over 17-year high of 6.5%.

Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University, said external headwinds had affected demand for Philippine-made goods in the international market.

“Shocks, including war, climate change, geopolitical tensions, resurgent nationalism and growing focus on national security have resulted in inflationary pressures, rising costs of capital, fiscal distress and declining fiscal space, and challenges in meeting sustainability goals,” he said in a Facebook Messenger chat. — Beatriz Marie D. Cruz

End-Aug. outstanding debt dips to P15.5T

REUTERS/THOMAS WHITE/ILLUSTRATION

THE NATIONAL GOVERNMENT’S (NG) outstanding debt slipped to P15.55 trillion as of end-August due to a stronger peso and the net repayment of foreign debt, the Bureau of the Treasury (BTr) said.

Data from the BTr showed that the NG’s debt portfolio fell by 0.9% month on month from the record-high P15.69 trillion as of end-July.

This marked the first decline in the government’s debt stock since end-March, when the debt dropped by 1.67% to P14.93 trillion.

National Government outstanding debt

“This decline was primarily attributed to the revaluation effect of peso appreciation and the net repayment of external debt,” the Treasury bureau said in a statement.

Year on year, outstanding debt increased by 8.4% from P14.35 trillion at the end of August 2023.

Of the total debt, 69.4% was from domestic sources, while 30.6% was from external sources.

Domestic debt inched up by 0.4% to P10.79 trillion as of end-August from P10.75 trillion in the previous month. Government securities accounted for nearly all of domestic debt.

“The increase stemmed from the net issuance of government securities amounting to P45.05 billion, albeit partially offset by the P6.59-billion downward revaluation effect of the peso appreciation on US-dollar-denominated domestic securities,” BTr said.

The peso strengthened by P2.31 to P56.18 a dollar at end-August from its P58.49 finish at end-July.

On the other hand, foreign debt fell by 3.6% to P4.76 trillion at end-August, from P4.94 trillion a month earlier.

“The decline was brought about mainly by the peso appreciation, which trimmed P194.9 billion, as well as net repayments of P4.17 billion, although stronger third currencies added P20.82 billion in valuation effects,” BTr said.

Foreign debt was composed of P2.25 trillion in loans and P2.51 trillion in debt securities.

Debt securities consisted of P2.13 trillion in US dollar bonds, P214.17 billion in euro bonds, P58.24 billion in Japanese yen bonds, P56.18 billion in Islamic certificates and P54.77 billion in peso global bonds.

As of end-September, the NG’s guaranteed obligations rose by 5.6% to P364.03 billion from P344.79 billion at end-July.

“The increase reflects PSALM’s (Power Sector Assets and Liabilities Management) availment of new guarantees amounting to P24.33 billion and escalation in the valuation of third currency-denominated component of P1.38 billion, while the favorable peso movement provided a downward offset of P6.47 billion,” according to the Treasury.

The drop in debt in August can be attributed to the peso, which strengthened amid expectations of the US Federal Reserve’s easing cycle at the time, Jonathan L. Ravelas, senior adviser at professional service firm Reyes Tacandong & Co., said in a Viber message.

The Fed began its easing cycle last month as it cut rates by 50 basis points, bringing its key policy rate within 4.75-5%.

“The stronger peso exchange rate versus the US dollar, the strongest for the peso in about six months, also led to the reduced peso equivalent of the NG outstanding foreign debt,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber chat.

He added that the decline in outstanding debt was also due to the repayment of maturing government securities.

In the coming months, he said the stronger peso and more maturing Treasury bonds could drive debt levels lower.

“However, there are no large NG maturing debt in November-December, in view of the holidays in towards the end of the year, though there are also reduced borrowing activities near the holiday season, so new NG borrowings could largely be a function of the budget deficit and peso exchange rate trend,” he added.

The $2.5-billion dollar bond issuance in August could be added to the NG’s debt stock in September, Mr. Ricafort added.

The government’s borrowing program for this year is set at P2.57 trillion, with P1.92 trillion to be raised from domestic sources and P646.08 billion from the foreign market.

Latest data from the Budget department showed that the NG’s debt stock is projected to reach P16.06 trillion by the end of 2024. — B.M.D.Cruz

August hot money inflows hit $534M

JCOMP-FREEPIK

MORE SHORT-TERM foreign investments flowed into the Philippines in August, data from the Bangko Sentral ng Pilipinas (BSP) showed.

Transactions on foreign investments registered with the central bank through authorized banks posted a net inflow of $533.95 million, surging by 248% from the $153.46-million inflow posted a year ago.

Month on month, inflows fell by 61.4% from $1.38 billion in July.

These foreign portfolio investments are also called “hot money” due to the ease by which these funds enter and leave the economy.

BSP data showed gross inflows stood at $1.37 billion in August, down by 4.9% from $1.44 billion a year ago.

During the month, investment inflows came mostly from Singapore, the United States, United Kingdom, Luxembourg and Malaysia. These five economies accounted for 81.5% of foreign portfolio investment inflows.

A little over half (51.2%) of these investments went into Philippine Stock Exchange-listed securities of banks; transportation services; holding firms; property; and food, beverage and tobacco. The rest (48.8%) were invested in peso government securities.

Meanwhile, gross outflows of hot money declined by 35% to $836.78 million in August from $1.29 billion a year earlier.

“The US remains to be the top destination of outflows, receiving $436.33 million (or 52.1%) of total outward remittances.”

In the January-August period, BSP-registered foreign investments yielded a net inflow of $1.998 billion, surging by 542.9% from the $310.77 billion net inflows a year ago.

Gross net inflows stood at $11 billion, while net outflows amounted to $9 billion in the eight-month period.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the higher net inflow of hot money was largely due to the BSP’s recent policy rate cut.

The Monetary Board in August reduced borrowing costs by 25 basis points (bps), bringing the key rate to 6.25% from the over 17-year high of 6.5%. This was its first policy reduction in nearly four years.

“The Fed also started to cut rates by a jumbo (50 bps) on Sept. 18 to a new target range of 4.75%-5% that could be matched locally later this year,” Mr. Ricafort added.

US Federal Reserve Chairman Jerome H. Powell on Monday struck a hawkish tone on the economy, saying the central bank is not “in a hurry to cut rates quickly.”

Mr. Powell said he also sees two more rate cuts, totaling 50 bps, this year “if the economy performs as expected.”

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies (PIDS), said the continued inflows of short-term capital were due to the improving business environment.

“It might be explained by improving investor confidence brought about by lagged effects of liberalization measures, completion of some infrastructure projects, fiscal consolidation, robust macroeconomic fundamentals, economic outlook due to managed inflation and lowering of interest rates, and the trajectory of the Philippines towards upper middle-income status,” he said.

“However, this is threatened by political risks and the electoral season where a slowdown is expected due to emphasis on campaign activities,” he added.

For the coming months, more short-term investments could enter the country after the BSP slashed the reserve requirement ratio (RRR) for banks.

“The RRR cuts would increase banks’ loanable funds by about P400 billion with reduced intermediation costs and borrowing costs, thereby would help increase the demand for loans that, in turn, would boost economic growth and investment valuations,” Mr. Ricafort said.

The BSP last month said that it would reduce the RRR for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 250 bps. This would bring the ratio to 7% from 9.5%, effective later this month.

It will also cut the RRR for digital banks by 200 bps to 4%, while the ratio for thrift lenders will be reduced by 100 bps to 1%. Rural and cooperative banks’ RRR will likewise go down by 100 bps to 0%.

The BSP expects foreign portfolio investments to yield a net inflow of $4.2 billion in 2024. — Luisa Maria Jacinta C. Jocson

Finding purpose in fintech

The EY Entrepreneur Of The Year 2024 Philippines has concluded its search for the country’s most visionary leaders shaping opportunities and transforming industries. It is a program of the SGV Foundation, Inc., with co-presenters: the Asian Institute of Management, the Department of Trade and Industry, the Philippine Business for Social Progress, and the Philippine Stock Exchange.

Elenita C. Dela Rosa
Founder and Chief Executive Officer
ECo Global Consulting

ELENITA C. DELA ROSA always had an affinity for computer science. Though she had scholarship options, she chose to study computer engineering at Mapua University without a scholarship to pursue a path that leaned towards working with computers.

Upon graduation, she entered as a trainee programmer at one of the largest financial technology (fintech) companies in the world, working through the ranks until she became the global director of product management and product development — and the only Filipina among international peers.

She stayed for 21 years, traveling overseas for clients. However, her corporate life reached a turning point when the company changed its executive management. Her exposure to first-world countries had instilled in her a dream to raise the Philippines to a similar standard, and this, coupled with the company change, led her to start her own company where Filipinos can succeed on the global stage.

She left in 2013, and within that year founded ECo Global Consulting, an IT solutions and service company for core banking systems. Using her own savings, she invested in a website, a Makati office, and five consultants despite not having any projects yet.

This came with its own unique challenges; she quicky learned the difficulty of being a much smaller player. She performed product pitches herself as they lacked a sales team, but though their services were difficult to pitch, her connections referred them to their first clients in the Middle East and Europe in 2014.

Despite the challenges, she believed that this was what she was meant to do. Everything in her gut told her this was her purpose, and holding fast to her confidence in their product and their team’s ability to deliver led to them gaining more overseas clients.

In 2018, business slowed. It was enough for her to begin doubting whether Eco Global was truly her purpose. However, they won their first major Philippine client in 2019 — leading her to take another leap of faith.

They started building what encompassed Ms. Dela Rosa’s vision and personal advocacy to champion local economic development in the Philippines: ECOSLAi, a plug-and-play full core banking and lending platform for the digitalization of rural banks, cooperatives and microfinance institutions. It’s the first solution of its kind for community banking, providing interoperability, scalability and security within a robust and cost-effective framework, enabling rural banks to transform and keep their operations lean.

Though many businesses found themselves challenged during the pandemic, ECo Global grew rapidly by allowing them to close deals remotely as opposed to the face-to-face meetings traditional banks required. Development on ECOSLAi also continued, and by November 2023, the company held its soft launch as one of six Philippine delegates to a Hong Kong fintech event.

Before the lockdown, the company’s working conditions were already flexible. Despite having no precedent, Ms. Dela Rosa took inspiration from four-day workweek scenarios and applied their own flexible working model.

Though she is aware that recruitment is key to further growth, she is firm in only hiring people who hold the same values as the company. These values transcend generational differences, and their current team comprises a good mix of older employees and those belonging to Gen Z.

She actively supports employee engagement, as she believes any business will only be sustainable when it invests in human capital. Even before ECo Global was certified as a Great Place To Work, the company was already following the key drivers identified by the certification’s Trust Index Survey and led to them winning several awards.

Her challenges and wins led her to recognize that entrepreneurship requires the confidence and grit to continuously try and fail. This is only doable when you love what you are doing and feel that it is your purpose. As ECo Global continues to innovate and expand, Ms. Dela Rosa’s journey exemplifies the pursuit of a vision, driven by a deep-seated passion for technology and an unwavering commitment to make a difference.

The media sponsors are BusinessWorld and the ABS-CBN News Channel. The Gold sponsors are SteelAsia Manufacturing Corp., Uratex and Converge ICT Solutions, Inc. The Silver sponsor is International Container Terminal Services, Inc. The Bronze sponsor is Lausgroup Holdings, Inc. The Banquet sponsors are Robert Blancaflor & Groups, Inc., Bounty Fresh Group Holdings, Inc. and Vista Land & Lifescapes, Inc.

The winners will be announced on Oct. 23, 2024. The EY Entrepreneur Of The Year 2024 Philippines will represent the country in the World Entrepreneur Of The Year 2025 in Monte Carlo, Monaco in June 2025. The EY Entrepreneur Of The Year program is produced globally by Ernst & Young (EY).

2024 Outstanding Filipino Retailers (OFR) Awards: Celebrating excellence in retail

The Philippine Retailers Association (PRA) honored the winners of the 2024 Outstanding Filipino Retailers (OFR) Awards during a grand ceremony at Solaire Resort North. The event celebrated retailers who have excelled in sustainability, innovation, and leadership in the Philippine retail industry.

A key highlight of the night was the PRA President’s Award, presented to Hans Sy, Chairman of the Executive Committee of SM Prime Holdings, as the Retail Development Visionary. His leadership in building sustainable retail spaces has created new growth opportunities for Filipino retailers.

The 2024 OFR Awards recognized a wide range of winners. Wilcon Depot dominated the large categories, winning the Sustainability Award, Retail Innovation in Business Process, and Retail Innovation in Digital Transformation. In the medium categories, ALDO took home the Sustainability Award, while Aficionado was recognized for Retail Innovation in Business Process. Human won the Sustainability Award in the small category. For Retail Innovation in Store Design and Merchandising, the winners were BENCH (Large), Urban Revivo (Medium), and Studio Dimensione (Small). Golden ABC, Inc. — The Penshoppe Group and Anthem were honored in the Retail Employer Award categories for large and medium companies, respectively. In the malls and shopping centers category, Robinsons Magnolia received the Sustainable Shopping Center Design Award, while Gateway Mall 2, Araneta City was recognized with the Mall Innovation Award.

The PRA extends its gratitude to the event sponsors: SM Retail, Robinsons Malls, Bench, CLN, Airspeed, SM Supermalls, Outbound Asia, Inc., and Avolution, with special thanks to the media partners — BusinessWorld, The Manila Times, Mediablitz Group, The Philippine Star, and Philippine Daily Inquirer — for their continued support.

 

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Two sides of Fernando Zóbel: the artist and the patron

Fernando Zobel birth centennial exhibits

FERNANDO ZÓBEL was both an influential artist and a staunch proponent of the Philippine postwar art scene. At the Ayala Museum and the Ateneo Art Gallery, these two sides of him are explored through exhibitions showcasing his life’s work.

Titled Zóbel: The Future of the Past, Spanish co-curators Felipe Pereda and Manuel Fontán del Junco’s follow-up to the highly acclaimed 2022 Zóbel exhibit at Museo Nacional del Prado in Madrid, is an expanded iteration, featuring over 200 of his works from the 1940s onwards.

Meanwhile, A Synergy of Ventures: The Postwar Art Scene is the Ateneo Art Gallery’s (AAG) vast showcase of the art that Mr. Zóbel donated to the school where he taught until the 1960s, a pivotal period in the development of Philippine modern art, and one that he fervently supported.

These two exhibitions, while organized and curated independently of each other, present two sides of a coin — Zóbel as an artist, and Zóbel as a patron of the arts — a fitting tribute for his birth centennial.

ZÓBEL AS AN ARTIST
Mr. Pereda, who is also a professor of Spanish art at Harvard University, told BusinessWorld that Mr. Zóbel was “a key figure in the search of the Filipino in the modern time of painting.”

“His works were fundamental in the grounding of the language of Filipino modern art,” he said during the exhibition’s launch in September.

They decided to showcase “Zóbel’s ability to bridge artistic traditions across Asia, Europe, and America,” since he was based in Manila, Madrid, and even Boston at various points of his life, according to Mr. Pereda.

For Mr. Fontán del Junco, a museum director at Fundación Juan March in Madrid, curating the show was a joy because it allowed them to “bring out Zóbel’s distinct voice as a lyrical abstractionist and expressionist.”

Opening the exhibition is a photograph of Mr. Zóbel at work, the piece he is working on, Self-Portrait on the Red Wall from 1954, displayed later on in the exhibit among his other vibrant early works. The painting comes from the private collection of Paulino and Hetty Que.

Sketchbooks exploring Chinese calligraphy, Japanese sumi-e painting, and Spanish colonial religious architecture as well as journals filled with depictions of day-to-day Philippine life reveal a complex myriad of influences.

Aside from the well-known Saetas and Serie Negra series, a must-see — being shown for the first time in public — is El Cristo de Lepanto, Mr. Zóbel’s 1964 painted dialogue with Juan Luna’s 1884 masterpiece Battle of Lepanto. The gigantic work concentrates Luna’s dramatic scenery of naval war into a stunning blur of light and colorful brushstrokes.

“That prized painting changes the narrative of this show, putting more emphasis on the Asian component. The Prado exhibit did not have it because it was [held] during the pandemic, so many loans were not possible. The Lepanto was the most ambitious work of that decade,” Mr. Pereda said.

ZÓBEL AS A PATRON OF THE ARTS
The exhibition at the Ateneo Art Gallery presents the core collection that Mr. Zóbel donated to the university between 1959 to 1969, along with loaned works from Purita Kalaw Ledesma’s estate. These are placed “within the context and conditions of the postwar era and its emerging art movement.”

“Zóbel was a latecomer to the Philippine arts scene coming from his studies in the US, but he was still very important. That’s why we included some of the Kalaw-Ledesma collection to represent the years before Zóbel’s first donation in 1952,” said Boots Herrera, AAG’s director and chief curator, at a media tour of the exhibit in September.

In addition to teaching art at Ateneo and setting up its gallery, Mr. Zóbel was a member of the Philippine Art Gallery (PAG) and the Art Association of the Philippines (AAP), organizations that solidified modern art in the country.

The exhibition showcases the works he preserved by Filipino contemporaries he admired who are now legends in Philippine art: Vicente Manansala, Anita Magsaysay-Ho, H.R. Ocampo, Jose Joya, Romeo Tabuena, Lee Aguinaldo, and Victor Oteyza.

“We wanted to show how modernism was reintroduced and reinvigorated through the postwar efforts of PAG and AAP,” Ms. Herrera said.

Walking through the exhibit is an awe-inspiring, in-depth crash course on Philippine modernism, as seen through the eyes and lens of Mr. Zóbel and his peers and students from the Ateneo community of artists and writers.

It is a glimpse into “the beginnings of artists who are now considered stalwarts in Philippine art history” and is an essential part of understanding Mr. Zóbel and his role in the development of Philippine art, she added.

Zóbel: The Future of the Past and A Synergy of Ventures: The Postwar Art Scene are both supported by the Embassy of Spain in the Philippines. The former runs at the Ayala Museum until Jan. 26, 2025, while the latter runs at Ateneo Art Gallery until July 12, 2025. — Brontë H. Lacsamana

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