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Globe receives coveted Five Golden Arrow Award for 3rd consecutive year

(L-R) Atty. Pedro H. Maniego, Jr., Institute of Corporate Directors Chairman; Atty. Roel A. Refran, PSE EVP and COO; Atty. Marisalve Ciocson-Co, Globe’s Chief Compliance Officer, SVP for Legal and Compliance and Assistant Corporate Secretary; Atty. Emilio B. Aquino, SEC Chairman; Ida Ceniza Tiongson, ICD Vice-Chairperson; and Ma. Victoria C. Españo, ICD Treasurer

Cementing its corporate governance leadership, Globe has secured the prestigious Five Golden Arrow Award from the Institute of Corporate Directors (ICD) this year, the third consecutive time for the company to receive the coveted recognition.

The Golden Arrow Awards are part of the ASEAN Corporate Governance Scorecard (ACGS) program, which evaluates publicly-listed and insurance companies across the ASEAN region on key governance areas such as shareholder rights, equitable treatment, transparency, and board accountability, all essential to maintaining strong corporate governance practices.

Being one of only five publicly-listed companies, and the only telco in the Philippines to receive this honor, underscores Globe’s unwavering dedication to transparency, accountability, and ethical business practices.

The achievement also reflects Globe’s ability to balance the interests of its shareholders and stakeholders while ensuring long-term sustainability in an ever-evolving business landscape.

The Golden Arrow is awarded to companies that scored at least 80 points in the ACGS Assessment across five performance levels. Globe secured the highest level by achieving a score of 120 to 130 points, earning the coveted five-arrow recognition.

“By consistently striving for excellence in governance, Globe has solidified its position as a trusted leader in the industry and a key driver of corporate governance standards across the region. With this latest accolade, we are well-positioned to continue elevating our governance practices, ensuring that Globe remains at the forefront of corporate governance excellence in the Philippines and beyond,” said Atty. Marisalve Ciocson-Co, Globe’s Chief Compliance Officer and SVP for Legal and Compliance.

In attendance at the 2024 awarding ceremony held at the Manila Marriott Hotel were key representatives from Globe’s Legal and Compliance team, including Atty. Ciocson-Co; Atty. Ria Caganda-Vistan, AVP; and Paralegals Grace Opeña and Harriette Martinez.

The event recognized a total of 111 publicly listed companies and 25 insurance companies in the ASEAN region that have exemplified excellence in corporate governance.

Globe’s continued achievement in the Golden Arrow Awards aligns with its efforts to comply with the Philippine Code of Corporate Governance and international best practices in governance.

This year, Globe also received an MSCI ESG Rating of “AA” for the second consecutive time, reflecting its Environment, Social, and Corporate Governance (ESG) leadership in the telecom industry. MSCI ESG Research assesses governance structures, policies, targets, performance metrics, and any related controversies of companies. Globe’s “AA” rating demonstrates its proactive approach to managing risks and its dedication to sustainable business practices. Globe has also received its SBTI approval for its net zero pathway until 2050.

For more information on how Globe creates value, please check the 2023 Globe Integrated Report. To learn more about Globe, visit www.globe.com.ph.

 

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China’s factory, service sectors skid, emboldening stimulus calls

REUTERS

BEIJING – China’s factory activity shrank for a fifth straight month and the services sector slowed sharply in September, suggesting Beijing will need even more stimulus to hit its 2024 growth target with only three months left in the year.

The National Bureau of Statistics (NBS) purchasing managers’ index (PMI) released on Monday nudged up to 49.8 in September from 49.1 in August, still below the 50-mark separating growth from contraction but beating a median forecast of 49.5 in a Reuters poll. The reading was the highest in five months.

However, paired with a downbeat private-sector Caixin survey and weak service PMIs, the data showed China’s factory and consumer activity remains a pain point for policymakers who acknowledged the economy faces “new problems” and have called for more forceful stimulus.

Authorities last week launched their most aggressive stimulus package since the COVID-19 pandemic, which helped China’s stocks post their best weekly performance in nearly 16 years. Share markets extended their rally on Monday.

Economists say while the PMIs showed some bright spots for manufacturing, the bigger question now is on whether last week’s big policy announcements, which include loosened property curbs in China’s biggest cities, would be enough to kickstart a recovery.

“From a macro perspective these policies are not that important, as these cities account for a small share of national property market,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management. “The key policy to address the macro challenge remains to be fiscal.”

The central bank and top financial regulator on Sunday night unveiled more sweeping measures to aid the housing market, including directives for banks to lower mortgage rates for existing home loans before Oct. 31.

 

WEAK SERVICES

Analysts expect the stimulus and a reported new 2 trillion yuan ($285.20 billion) bond package should be enough to deliver growth in line Beijing’s growth target of around 5%, but the country still needs to tackle issues of weak demand and an increasingly hostile global trade environment.

Signs of persistent consumer weakness were evident in Monday’s readings with the official services PMI falling to 49.9 in September, showing the first contraction since December last year. Meanwhile, the Caixin services PMI showed activity in the sector slowed.

Zhao Qinghe, statistician at the NBS, said the decline in the official services PMI was due to the end of summer holiday travel peak and extreme weather such as typhoon in some regions.

The official construction PMI, however, shot up to 50.7 from 50.6 in the prior month.

Reuters reported on Thursday that 1 trillion yuan due to be raised via special bonds will be used to increase subsidies for a consumer goods replacement program and for business equipment upgrades.

China also aims to raise another 1 trillion yuan via a separate special debt issuance to help local governments tackle their debt problems, Reuters reported.

Officials said last week the program has already boosted auto sales, home appliances and home decoration products.

As a property downturn weighs on the broader economic recovery, top leaders at a Politburo meeting last week called for efforts to stop the falls in the housing market.

Megacities Shanghai and Shenzhen planned to lift key home purchase restrictions in coming weeks, joining a long list of smaller cities that have done so, Reuters reported on Friday. On Sunday, Guangzhou lifted all home purchase restrictions.

“Attention now shifts to the equity market, particularly property sales and consumption during Golden Week,” said Zhou Hao, chief economist at Guotai Junan International.

Chinese households are preparing to kick off the seven-day Golden Week holidays from Tuesday. – Reuters

Biden approves $567 mln in defense support for Taiwan, White House says

REUTERS

U.S. President Joe Biden on Sunday approved $567 million in defense support for Taiwan, the White House said, the latest move by the United States to boost the island’s military in the face of rising tensions with China.

The United States is Taiwan’s most important international backer and arms supplier even in the absence of formal diplomatic ties. China has repeatedly demanded Washington stop selling weapons to Taipei, which it claims as its territory.

In a statement, the White House said Mr. Biden had delegated the Secretary of State the authority “to direct the drawdown of up to $567 million in defense articles and services of the Department of Defense, and military education and training, to provide assistance to Taiwan”.

It provided no further details.

In April, Mr. Biden signed a hard-fought bill into law that provides billions of dollars of new U.S. aid to Ukraine for its war with Russia, as well as for Israel and Taiwan.

Taipei has complained of delayed U.S. arms deliveries, including for upgraded F-14 fighter jets.

China, which views democratically-governed Taiwan as its own territory, has ramped up military and political pressure over the past five years to assert its claims, which Taipei strongly rejects. – Reuters

Harris campaign raises $55 mln over two weekend events, campaign official says

KAMALA HARRIS — GAGE SKIDMORE/WIKIMEDIA.ORG

LAS VEGAS – Kamala Harris’ U.S. presidential election campaign raised $55 million during two events this weekend, a campaign official said on Sunday.

The Democratic candidate and U.S. vice president raised $27 million at a fundraising event at the Palace of Fine Arts in San Francisco on Saturday that included remarks by former House of Representatives Speaker Nancy Pelosi and a performance by “Rise Up” singer Andra Day, said the official, who declined to be identified discussing non-public information..

Ms. Harris then drew $28 million for an event in downtown Los Angeles that included performances by Alanis Morissette and Halle Bailey. Also spotted at the event were Keegan-Michael Key, Sterling K. Brown, Demi Lovato, Jessica Alba, Lily Tomlin and Stevie Wonder.

At the events, Ms. Harris spotlighted her economic policies, calling herself a capitalist and painting the stakes of the election in existential terms. She told donors she would win but also that she was the underdog in the race, with just weeks to go.

Ms. Harris’s presidential campaign and the Democratic Party raised $361 million in August, giving her a clear cash advantage over Republican rival Donald Trump, whose campaign raised $130 million in August together with the Republican Party.

The two candidates remained in a close race for the presidency with just over a month before the Nov. 5 presidential election. A Reuters/Ipsos poll taken earlier this month showed Ms. Harris leading Mr. Trump 47% to 40%, although other polls showed a tighter race. – Reuters

Austria’s rightward shift puts immigration in crosshairs

FLATART-FREEPIK

VIENNA – Having a picnic with friends in the park after prayers at a Vienna mosque, Saima Arab, a 20-year-old pedicurist originally from Afghanistan, is thankful for her freedoms in Austria.

“We could never do this in Afghanistan, never cook, go out, just sit in public like this”, said Arab, who came to Austria in 2017. “Home is like a prison there.”

Many Austrians, however, are worried about their country’s ability to integrate migrants, especially Muslims, and their desire for stricter immigration laws was a key issue in Sunday’s election which gave victory to the far-right Freedom Party (FPO) for the first time.

Both the FPO and the runner-up, the ruling conservative Austrian People’s Party (OVP), ran on pledges to tighten asylum laws and crack down on illegal immigration.

The FPO victory added to critics’ concerns about the rise of the far right in Europe after electoral gains in recent months by the Alternative for Germany and the National Rally in France.

“Whatever the government looks like after the election, I’m certain it’ll work towards toughening up asylum and immigration law,” Professor Walter Obwexer, an adviser to the government on migration law, said before the vote.

Arab, who also spoke to Reuters in an interview conducted before the election, said she did not like to talk about politics but hoped she too would vote in Austria one day.

The number of people in Austria born abroad or whose parents were jumped by more than a third between 2015 and last year, and now account for around 27% of the population of about 9 million.

Together the FPO and the OVP won over 55% of the vote and one of the two is almost certain to lead the next government, feeding expectations that Austria, like neighboring Germany and Hungary, and France, will adopt tougher rules.

Opinion polls showed immigration and inflation were key voter concerns. Such is the worry that Austria is taking in migrants faster than it can integrate them that even some Austrians of Muslim origin feel Austria is stretched.

“I wonder if the system is close to collapse”, said Mehmet Ozay, a Turkish-born Austrian FPO supporter, arguing there were too many asylum seekers not contributing to state coffers.

 

TAYLOR SWIFT CONCERT

The FPO has combined its tough talk on immigration with criticism of Islam.

The issue took center stage last month when police arrested a teenager with North Macedonian roots on suspicion of masterminding a failed Islamic State-inspired attack on a Taylor Swift concert in Vienna.

Running on the campaign slogan “Fortress Austria”, the FPO promoted “remigration”, including returning asylum seekers to their countries of origin, especially if they fail to integrate, and limiting asylum rights.

That has unsettled some who feel the party, which dropped some of its more polarizing slogans in the campaign, is demonizing foreigners.

The FPO, which did not reply to a request for comment, denies this. It says asylum seekers are a drain on state resources, and draws attention to crimes some of them commit.

“The FPO routinely talk about refugees and asylum seekers as rapists and thieves and drug dealers”, said Hedy, a social worker and Austrian citizen who arrived as a refugee from Afghanistan. He declined to give his last name.

“Something very similar happened to the Jews in Vienna before the Second World War”, he said, adding that the FPO, which wants to ban “political Islam”, would embolden xenophobes.

The FPO, whose first leader was a former Nazi lawmaker, has sought to distance itself from its past, and in 2019 helped pass a law allowing foreign descendants of Austrian victims of National Socialism to acquire Austrian citizenship.

This month FPO leader Herbert Kickl called Adolf Hitler the “biggest mass murderer in human history”, as he roundly denounced the Nazi dictator’s legacy in a television debate.

Still, Alon Ishay, head of the Austrian Association of Jewish Students, said he saw some parallels between targeting of Jews in the early Nazi era and attitudes to Muslims now.

“There are rhetorical similarities when you talk about deportation, when you talk about taking people’s citizenship away”, he said, also speaking before Sunday’s election.

FPO-backer Ozay disagreed, saying that Muslims such as himself were free to do as they liked in Austria.

“If there were daily attacks by FPO voters I would understand the fear that things would get even more extreme if Kickl came to power”, he said. “But that’s not how it is. It’s just fear stirred up by the other parties.” – Reuters

Japan’s incoming PM Ishiba fills posts after close leadership race

WIKIMEDIA

TOKYO – Japan’s incoming prime minister, Shigeru Ishiba, will fill key party posts on Monday followed by a new Cabinet on Tuesday as he tries to unite his party after one of the ruling LDP’s closest ever leadership races and ahead of a general election.

Among Mr. Ishiba’s key picks so far are two rival candidates in the leadership race, Katsunobu Kato as finance minister and Yoshimasa Hayashi to stay on as chief cabinet secretary, a pivotal post that includes the role of top government spokesman, sources earlier told Reuters.

Japanese shares fell more than 4% on Monday as the yen strengthened in reaction to the leadership victory by Ishiba, who is seen as a monetary policy hawk.

A close Ishiba ally, Takeshi Iwaya, a former defense chief, will take over as foreign ministers, while Gen Nakatani will return to the defense ministry, a position he held in 2016, a source familiar with the appointments said, confirming earlier media reports.

Absent, however, from picks so far reported in local media is Sanae Takaichi, the hardline conservative he beat by 215 votes to 194 on Friday in the closest leadership election in almost seven decades.

Mr. Takaichi’s exclusion could make it difficult for Mr. Ishiba to manage a fractious ruling group roiled by scandals that have sapped its public support.

In a televised interview on Sunday, Mr. Ishiba did not discuss his cabinet appointments, but suggested he may call a general election as early as October. A poll must be held within the next 13 months.

Another rival, Shinjiro Koizumi, who has called for a snap election, will be his election campaign chief, according to a local media report. Former Prime Minister Yoshihide Suga, who backed Koizumi, will be his party vice president, the sources said. – Reuters

PonteFino Estates launches I.T. business park in Batangas

3D Render of The Forum IT Park by PonteFino at Batangas City | source: PonteFino

by Patricia B. Mirasol, Producer

Real estate developer PonteFino Estates launched on September 26 The Forum I.T. Business Park, a 4.26-hectare Philippine Economic Zone Authority (PEZA)-registered commercial township in Batangas City. 

This is the first real estate development in Batangas City to receive certification from the Department of Trade and Industry’s PEZA as an information technology business hub.   

With 22 commercial lots, the ecozone will be built around the needs of technology-intensive companies engaged in business process outsourcing, knowledge process outsourcing, and other support services.  

“Each of the commercial lots are between 300-1000 square meters that can be purchased,” according to Charyna B. Francisco, vice president for marketing at PonteFino Group of Companies.  

Three lots have already been sold to local companies, media were told during a September 26 tour of the property. 

“We are envisioning this to be the BGC [Bonifacio Global City] of southern Luzon,” Ms. Francisco said. 

The Forum I.T. Park will also have commercial and retail hubs alongside residential developments The Mansions, Park Avenue, and Accent Crest.  

A hotel with 138 rooms is likewise available for both short- and long-term stays. 

“We aim to offer developments that enhance the business landscape while enriching the lives of our residents,” said John Thomas M. Garcia, vice president for sales at PonteFino Estates, in a September 26 press statement.  

Batangas City, which boasts the second largest international port and hosts over 100 multinational companies, is positioned by PonteFino as a prime investment destination for both local and international markets.

Batangas City Mayor Beverley Rose A. Dimacuha-Mariño said that the partnership with the real estate developer will drive economic development through the opportunities it creates for employment, investment, and collaboration. 

“The establishment of The Forum…is a testament to our collective vision as a thriving knowledge economy in Batangas City,” the statement read. 

“It’s an exciting time to be part of Batangas City’s growth,” Mr. Garcia said. 

“We’re confident that this development by PonteFino will…contribute to the long-term development of the city,” he added. 

The target completion date of The Forum ecozone is in December 2028. 

Navigating the Financial Burden of Cancer: Support for Filipino Patients

OLGA KONONENKO-UNSPLASH

Each year, the Philippines records approximately 150,000 new cancer cases, presenting a significant financial challenge for patients and their families. For those unable to afford treatment, the pressing question remains: where can they turn for assistance?

The average cost of cancer treatment in the Philippines ranges from P120,000 to P2 million or even higher, causing financial constraint for 40.6% of cancer patients’ families, according to a statement from the Perpetual Help Medical Center.

Breast cancer has the highest incidence in the Philippines with over 27,000 cases and ranks third in cancer deaths, exceeding 9,000 deaths, according to a 2020 annual report by Globocan.

The Z benefits under PhilHealth are part of the government’s initiatives to address the financial burden of treatment among cancer patients.

In March, PhilHealth increased the Z benefit package for breast cancer from PHP 100,000 to PHP 1.4 million under PhilHealth Circular 2024-0007.

PhilHealth members and even patients already undergoing treatment from stages 0 to 4 of breast cancer, are now covered by the enhanced Z benefits.

“Kailangan ng patient yung hormone therapy, targeted therapy ay makuha niya, ma-access niya itong mga services na ito through the help of Z benefits of PhilHealth for breast cancer [The patient needs hormone therapy and targeted therapy, and they should be able to access these services through the help of the Z benefits of PhilHealth for breast cancer],” Dr. Francisco Soria Jr., Vice President of quality assurance group at PhilHealth said during a Philippine Society of Oncologists’ (PSO) media conference,

Under the enhanced Z benefits package, breast cancer patients are now covered by the following mandatory services:

  • Diagnostic tests and prognostication range (P1000 to P10,000)
  • Surgical procedures from partial mastectomy to modified radical mastectomy (P30,000 to P140,000)
  • Hormonotherapy coverage (P2700 to 18,000)
  • Cytotoxic chemotherapy (P43,000 to P185,010)

“The bulk of the package goes to targeted therapy amounting to more than P1 million coverage, which translates to P333,336 for 18 maximum cycles,” PhilHealth said in a statement.

For surveillance, it is divided into basic and specific services ranging from P5000 to P9000.

To avail of the Z benefits package, members or their qualified dependents are advised to contact the Z benefits coordinator at any health facility.

“Meron po tayong nationwide 23 hospitals na contracted natin for Z benefits for breast cancer [We have 23 hospitals nationwide that are contracted for Z benefits for breast cancer],” Mr. Soria said.

Breast cancer and other cancer patients can find where to avail of the Z benefits package, Contracted Health Facilities for Z-Benefit Package, as of December 2023.

In addition to breast cancer patients, those with other cancers identified as Z conditions, such as Acute Lymphocytic/Lymphoblastic Leukemia, Prostate Cancer, Cervical Cancer, and Colon and Rectum Cancer, can also avail of the Z benefits package.

Patients with the mentioned conditions can check their Z benefits package here: https://www.philhealth.gov.ph/benefits/

Besides the Z benefits package, breast cancer patients can also avail themselves of PhilHealth’s Konsulta package for regular medical consultations, lab tests, and medicines.

“Nagdagdag po ng mammogram at ultrasound na pwedeng magamit ng mga may cancer patients for diagnosis. At the same time meron pap smear service under Konsulta package [we have added mammogram and ultrasound services that can be used by cancer patients for diagnosis. At the same time, there is a Pap smear service under the Konsulta package],” Mr. Soria said.

Mr. Soria also noted that PhilHealth is actively working on automating the Z benefits system, as the application process is currently manual.

They are also considering enhancing the benefits for cervical and prostate cancer before the year ends.

 

Bridging the gap in information access

Several organizations, like the Philippine Society of Medical Oncology (PSMO), are helping to bridge the gap in information access for cancer patients seeking financial support.

“Would everyone know these access points to get the financial support that they need, they should not be fearing cancer, but if you do not know this thing, you might fear cancer, right? Dr. Herdee Gloriane C. Luna, member of PSMO and President of the Philippine Society of Oncologists (PSO) said.

It’s very important to get the right information, she added.

On their website, there is a list and link of government and non-government organizations, and agencies where cancer patients can seek financial assistance.

The website also includes a list of hospitals that provide free consultations with medical oncologists.

Patients seeking financial help and support can check here: https://psmo.org.ph/patients/patient-support-programs-and-groups/

For Ms. Luna, collaboration among various sectors is crucial in bridging the information gap for cancer patients seeking financial help. – Edg Adrian A. Eva

Bataan pushes the conversion of BNPP into a data center

REUTERS

by Almira Louise S. Martinez, Reporter

Converting the Bataan Nuclear Power Plant (BNPP) into a data center could benefit the nation, the province’s governor said on Tuesday. 

“I think this will be one of the biggest in the country; the government can definitely benefit. At least we have an in-country data center,” Bataan Governor Jose Enriquez “Joet” S. Garcia III said in an interview.  

Transforming the power station could drive many opportunities, not only for the province but also for the whole country, he added.  

“It’s a work-and-play development that I believe can attract investors and locators, bringing in revenue and jobs.” 

Further, the local government plans to establish an IT-BPM hub within the proposed center to serve private sectors and companies.  

“We are proposing that it become an IT-BPM hub so locators will be there, and various BPM will be there,” Mr, Garcia said. 

Mr. Garcia told BusinessWorld he sees data as ‘gold’ that needs a secure and safe place to store, which BNPP could offer given the nature of its structure. 

 “There’s really good potential to convert the BNPP into a cloud computing center—in fact, a water-cooled data computing center.” 

 “As we all know, nuclear plants are also water-cooled, so we can utilize that same technology to help make the data center more efficient,” he added. 

Mr. Garcia appeals to the national government to support the ‘practical’ utilization of the facility instead of operating it as a nuclear power plant.  

“So many changes are happening in the province; we have so many critical industries here; we don’t think a nuclear plant in Bataan would be the most practical.”  

Last September 2, the 2nd District of Bataan Congressman Albert S. Garcia had a discussion with the Department of Information and Communications Technology (DICT) about the structural plans and design of the BNPP conversion project.

ICD fetes SM with highest Golden Arrow recognition for excellence in corporate governance

From left to right: Atty. Pedro H. Maniego, Jr., Institute of Corporate Directors (ICD) Chairman; Atty. Roel A. Refran, Philippine Stock Exchange (PSE) Executive Vice-President and Chief Operating Officer; Amando M. Tetangco, Jr., SM Investments Corp. Chairman; Emilio B. Aquino, Securities and Exchange Commission (SEC) Chairman; Ida Ceniza-Tiongson, and Ma. Victoria C. Españo, ICD Vice-Chairperson and ICD Treasurer, respectively

SM Investments Corp. was awarded the prestigious 5 Golden Arrow Award by the Institute of Corporate Directors (ICD), the highest recognition given during the ASEAN Corporate Governance Scorecard (ACGS) 2024 Golden Arrow Awards.

Only five companies received the 5 Golden Arrow Award, four of which were SM companies. Aside from SM Investments, also cited were BDO Unibank, Inc. (BDO), China Banking Corp. (China Bank), and SM Prime Holdings, Inc. (SM Prime).

“This recognition reflects the commitment and hard work of our entire organization,” said SM Investments Chairman Amando M. Tetangco, Jr. “From the board, management, our leaders and teammates — everyone consistently works to ensure we continue to adopt and uphold the highest standards in good corporate governance.”

SM Investments practices the highest standards of good corporate governance in all its dealings with investors, business partners, creditors, customers, employees and all other stakeholders. SM Investments believes that good corporate governance will provide the long-term growth and sustainability for the company.

“We recognize the rising global attention on corporate governance and sustainability as part of companies’ business strategies. Beyond compliance, SM’s operations are anchored on fairness, integrity, accountability, transparency and stakeholder engagement,” SM Investments Executive Vice-President and Chief Risk and Compliance Officer Elizabeth Anne “Lizanne” C. Uychaco said.

According to the ICD, the ACGS measures the performance of the companies in the areas of facilitating the rights and the equitable treatment of shareholders, how they relate to their different stakeholders, ensuring transparency and accountability through timely disclosure of material information, and how the Board guides the company strategically, monitors the management, and ensures the Board’s accountability to the company and the shareholders. The assessment is based on publicly available disclosures on the companies’ websites.

 

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Inflation may ease to near 4-year low

PHILIPPINE STAR/RYAN BALDEMOR

By Luisa Maria Jacinta C. Jocson, Reporter

HEADLINE INFLATION likely slowed to a near four-year low in September amid falling prices of rice and fuel, giving the Bangko Sentral ng Pilipinas (BSP) room to cut benchmark interest rates further, analysts said.

A BusinessWorld poll of 15 analysts conducted last week yielded a median estimate of 2.5% for the September consumer price index (CPI).

If realized, September inflation would be sharply slower than 3.3% in August and 6.1% in the same month a year ago.

Analysts’ September inflation rate estimates

This would also be the lowest monthly print in nearly four years or since the 2.3% clip in October 2020.

The Philippine Statistics Authority is scheduled to release September inflation data on Friday (Oct. 4). The BSP has yet to release its month-ahead inflation forecast.

Easing rice prices likely caused the CPI to go down this month, analysts said.

“Price pressures will ease on rice, which makes up a significant proportion in the heavily weighted food basket. Prices for the staple soared in 2023 when India banned the export of non-basmati white rice,” Sarah Tan, an economist from Moody’s Analytics, said in an e-mail.   

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

The Agriculture department earlier this month said they are eyeing to bring down rice inflation to single-digit levels.

“The cut in the tariff on imported rice, which took effect at the end of June and will last until year’s end, will help bring down inflation for this staple,” Ms. Tan added.

In June, President Ferdinand R. Marcos, Jr. issued Executive Order No. 62, cutting tariffs on rice imports to 15% from 35% until 2028.

“Food price base effects will remain quite favorable, stemming from last year’s rice price surge. This should pull food inflation down quite sharply, even if there is no material change month to month,” Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco said.

Philippine National Bank economist Alvin Joseph A. Arogo said the steady food and non-alcoholic beverage index in August also “provides buffer against the potential adverse impact of the current and upcoming typhoons on overall food prices.”

Lower fuel prices may have led to slower September inflation, analysts added.

“Disinflation may come largely from broad food and transport CPI. Particularly, we expect declines from rice prices and lower gasoline/diesel prices from declining global prices,” Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion 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.

“Retail fuel prices fell by as much as 7% month on month on the back of lower oil prices globally and a stronger peso against the US dollar,” Aris D. Dacanay, economist for ASEAN (Association of Southeast Asian Nations) at HSBC Global Research, said.

“Transport deflation should also deepen, further pulling down headline inflation, thanks to the rolling over in domestic pump prices, which reflect the weakness in global oil prices,” Mr. Chanco added.

“(Inflation) was likely within the target band as an effect of easing supply-chain constraints, slowdown in oil prices, and inflow of agricultural imports. However, it is still threatened by natural calamities that can disrupt food supplies,” Oikonomia Advisory & Research, Inc. said.

MORE ROOM FOR RATE CUTS
The expected downtrend in inflation in the coming months will give the BSP more space to continue its policy easing cycle, analysts said.

“For the coming months, it is possible for inflation to sustain at 3% levels for the rest of 2024, or well within the BSP inflation target range of 2-4%, that could justify further BSP rate cuts that would match any future Fed rate cuts from 2024-2026,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

“With CPI inflation remaining on a downward path and the US Fed already starting its cutting cycle, BSP has plenty of scope to further remove the restrictiveness of its monetary stance,” Nomura Global Markets Research Chief ASEAN Economist Euben Paracuelles said. “We still forecast BSP to cut by 25 bps at each of the October and December meetings, and by 75 bps in the first three meetings in 2025, bringing the policy rate to 5%.”

BSP Governor Eli M. Remolona, Jr. last week signaled that the central bank could deliver a 25-bp rate cut each at its remaining two meetings.

The Monetary Board in August reduced borrowing costs by 25 bps, bringing the key rate to 6.25% from the over 17-year high of 6.5%.

It will have its next policy review on Oct. 17, while its last meeting for the year is scheduled for Dec. 19.

Meanwhile, the Fed this month kicked off its easing cycle with a supersized 50-bp cut, bringing its target rate to the 4.75-5% range.

Markets are fully pricing in a cut of at least 25 bps at the Fed’s November meeting according to CME’s FedWatch Tool, Reuters reported.

“A cooling inflation print for September will convince the BSP that inflation has returned to target for good after July’s spike. Coupled with the recent 50-bp cut by the US Federal Reserve, this increases the chances for an October rate cut in the Philippines,” Moody’s Analytics’ Ms. Tan said.

“Indeed, the start of the monetary policy easing cycle in the US gives the BSP room to further loosen its monetary policy. The BSP could move with two 25-bp cuts in the fourth quarter across their two meetings in October and December,” Ms. Tan added.

Pantheon Macroeconomics’ Mr. Chanco said that if there is no “major shock” until the next inflation release, then the Monetary Board could implement another 25-bp cut at its October meeting.

“However, potential risks from oil and typhoons may keep the BSP cautious about interest rate cuts. The central bank is likely to opt for a gradual approach, with 25-bp reductions in October and December,” Security Bank Corp. Chief Economist Robert Dan J. Roces added.

Zamros Bin Dzulkafli, an economist at Maybank Investment Banking Group, likewise expects the BSP to reduce rates by a total of 75 bps this year, “supported by the recent ‘aggressive’ 50-bp rate cut by the US Fed.”

PEZA investment approvals reach P54.19B in Sept.

BW FILE PHOTO

THE PHILIPPINE Economic Zone Authority (PEZA) approved P54.19 billion in investment pledges in September, almost four times as much as the P14.04 billion okayed in the same month last year.

The investment promotion agency’s (IPA) board approved 16 new and expansion projects at a meeting on Sept. 23, it said in a statement on Sunday.

The pledges approved last week are expected to generate $541.04 million in exports and 4,044 new jobs, PEZA said.

Eight of these projects are in export manufacturing, five are in the information technology and business process management sector, one is in facilities development, and one each in economic zone (ecozone) logistics services and development.

In terms of investment destination, 11 of the projects will be put up in Calabarzon, two in Region VII, two in the National Capital Region, and one will be in Central Luzon.

One of the pledges approved this month is for a P50-billion project that the PEZA said may be eligible for an incentive package for highly desirable projects under the CREATE or Corporate Recovery and Tax Incentives for Enterprises law.

The September approvals also include a P988.29-million new ecozone development by a Filipino developer in Lima, Batangas.

“Such big-ticket investment plays a pivotal role in driving investment opportunities across the country, aligning with President Ferdinand R. Marcos, Jr.’s vision of elevating the Philippines to upper middle-income status,” PEZA said.

The green-lit commitments for this month brought PEZA-approved investment pledges for the first nine months to 179 projects, which have a combined cost of P115.89 billion. This represents a 4.21% increase from the investments approved in the same period last year.

The year-to-date approvals are expected to generate $2.51 billion in exports and 35,871 jobs.

“These approvals… strengthen the outlook for reaching the P200-billion investment target of PEZA for the year,” it said.

It added that it recorded an “exceptional surge” in investment approvals in the third quarter.

“With significant increases across various sectors, the Philippines is poised for an even more robust performance in the final quarter of 2024,” it added.

SUPPORT FOR MSMEs
PEZA said in a separate statement that it is working on programs that will support micro, small, and medium (MSME) enterprises.

To date, there are 722 Filipino PEZA-registered business enterprises (RBEs) that are micro-, small-, and medium-sized, representing 20% of the businesses registered with the IPA.

A PEZA survey showed that 89% of its registered MSMEs source their materials locally, such as packaging materials, raw materials, and machinery and equipment.

The survey, which was conducted from Aug. 7 to Sept. 9 and had 579 RBEs across different ecozones as respondents, also showed that MSMEs also engage in subcontracting non-PEZA registered companies for die-cutting services, sewing, and manpower and security services.

The IPA has been conducting reverse trade fairs to connect MSMEs with local suppliers, it said, as well as putting up a startup accelerator hub inside ecozones, producing an online PEZA digital marketplace, and promoting investments in labor-intensive manufacturing sectors, among others.

“PEZA recognizes that the steady growth of MSMEs will strengthen the Philippines’ competitive advantage as the source of high-quality materials that cater to both domestic and international markets,” it added. — Justine Irish D. Tabile

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