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Century-strong UTCI introduces DELI Tools

Executives from UTCI and DELI celebrate the inauguration of their partnership with a ribbon-cutting ceremony. Pictured from left to right: Marco Hu, Michelle L. Ong, UTCI Chairman Francisco Uy, Melody Lau, and Luis Liu

Revolutionizing the Philippine hardware market

UTCI (Uy Tit & Company Inc.) celebrated a significant milestone with the grand launch of DELI Tools in the Philippines last May 16, 2024. The event themed on “Founding for Success,” held at Sheridan Mandaluyong, showcased an extensive range of DELI Tools, marking a new chapter in UTCI’s commitment to innovation and excellence in the hardware sector.

UTCI, known for its century-long legacy in the hardware industry, has partnered with DELI to bring a wide array of high-quality tools to the Filipino market. This collaboration signifies a major step for both companies, as they aim to provide durable and reliable tools to both business and individual customers in the Philippines.

The event featured a gallery of DELI Tools, including Semi Pro Series, Professional Series, Home Series, and Gardening Series. Attendees had the opportunity to explore these products firsthand, highlighting the versatility and quality that DELI Tools brings to the market.

UTCI Managing Director of Business Development and Operations Michelle L. Ong — Photo from RVA Pro Foto & Events

The press conference included key executives from both UTCI and DELI. Michelle L. Ong, managing director of Business Development and Operations at UTCI, emphasized the strategic initiatives and vision for UTCI and DELI Tools in the Philippines. “This partnership embodies our enduring values of quality and affordability, and we’re excited to offer our customers the innovative and reliable products from DELI Tools,” she stated.

UTCI Managing Director of Procurement and Accounting Melody Lau

Melody Lau, managing director of Procurement and Accounting at UTCI, shared insights into the development and procurement strategies that have led to this successful partnership. “Our ancestors had been importing brands in the hardware industry for decades until we started to build our house brand almost 37 years ago. Now, with DELI Tools, we believe we can build a strong partnership and make it the number one hardware tools brand in the market,” she explained.

DELI Philippines Country Manager Marco Hu — Photo from RVA Pro Foto & Events

Marco Hu, country manager of DELI Philippines, highlighted the brand’s market expansion strategies and innovative marketing approaches. “DELI stands out with its strong product development and diverse range of products. This partnership will introduce exceptional support and innovation to our partners and customers, differentiating DELI Tools from other brands and elevating the overall market standards,” he noted.

DELI Southeast Asia Global Regional Manager Luis Liu — Photo from RVA Pro Foto & Events

Luis Liu, global regional manager of DELI Southeast Asia, discussed the operational excellence and management strategies that have made DELI a leading name in the tool industry. “Within five years, we aim to build a strong sales network in the Philippines and offer our partners reasonable pricing, ensuring profitability and a reliable partnership,” Mr. Liu commented.

This partnership aims to significantly enhance the availability and accessibility of high-quality tools across the Philippines. DELI Tools, known for its German engineering, promises durability and reliability at an affordable price. With a focus on both B2B and B2C markets, the partnership targets hardware store owners, construction companies, home improvement and renovation businesses, manufacturing businesses, auto detailing and repair businesses, DIY enthusiasts, professional carpenters, and homeowners.

From left to right: UTCI executives Melody Lau and Michelle L. Ong, and DELI executives Luis Liu and Marco Hu — Photo from RVA Pro Foto & Events

During the press conference, executives answered questions from the media, providing insights into the partnership’s strategic goals, the quality and innovation behind DELI, and the expected impact on the Philippine market. “The partnership between UTCI and DELI was a result of perfect timing and mutual goals,” said Ms. Ong. “Both companies share a commitment to achieving success through dedication and hard work.”

Mr. Liu added, “We are deeply attracted to UTCI because of their history and strong business relationships as a hardware importer and distributor. This collaboration is like magic, and we are confident that DELI will become a trusted brand in the Philippine market.”

UTCI and DELI are poised to revolutionize the hardware tools market in the Philippines. With a shared vision of quality, innovation, and customer satisfaction, this partnership marks an exciting new chapter for both companies. The Filipino market can look forward to a new era of high-performance tools, supported by UTCI’s extensive experience and DELI’s cutting-edge technology. The event concluded with a message of gratitude to all stakeholders, expressing confidence in the bright future of this partnership and its positive impact on the hardware industry in the Philippines.

For further information about UTCI (Uy Tit & Company Inc.) Brands and DELI, please direct your inquiries to utci.biz@gmail.com and follow & like their facebook /uytitandcompanyinc.

 

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North Korea says its latest satellite launch exploded in flight

FREEPIK

SEOUL/TOKYO – North Korea said its attempt to launch a new military reconnaissance satellite ended in failure on Monday when a newly developed rocket engine exploded in flight.

The attempt came just hours after Pyongyang issued a warning that it would try to launch a satellite by June 4, in what would have been its second spy satellite in orbit.

Instead, the launch became the nuclear-armed North’s latest failure, following two other fiery crashes last year. It successfully placed its first spy satellite in orbit in November.

“The launch of the new satellite carrier rocket failed when it exploded in mid-air during the flight of the first stage,” the deputy director general of North Korea’s National Aerospace Technology Administration said in a report carried by state media.

An initial analysis suggested that the cause was a newly developed liquid fuel rocket motor, but other possible causes were being investigated, the report said.

Officials in South Korea and Japan had earlier reported that the launch seemed to have failed.

North Korea fired the projectile on a southern path off its west coast at around 10:44 p.m. (1344 GMT), the South’s Joint Chiefs of Staff (JCS) said.

The JCS said it detected a large amount of debris from the rocket in the sea just two minutes after launch.

The object launched by North Korea disappeared over the Yellow Sea, Japanese Chief Cabinet Secretary Yoshimasa Hayashi told reporters.

“These launches are in violation of relevant security council resolutions and are a serious matter concerning the safety of our people,” Hayashi said.

The United States condemned the launch, “which incorporated technologies that are directly related to the DPRK’s ballistic missile program and took place in violation of multiple UN Security Council resolutions,” a State Department spokesperson said.

The launch came hours after China, South Korea, and Japan wrapped up a rare three-way summit in Seoul.

South Korean President Yoon Suk Yeol and Japanese Prime Minister Fumio Kishida had called on North Korea not to go ahead with the launch. Chinese Premier Li Qiang did not mention the launch, but called on all parties to lower tensions on the peninsula.

Japanese public broadcaster NHK showed video of what appeared to be an orange dot flying into the night sky and then bursting into flames in an area close to the border between China and North Korea.

The launch sparked public alerts in several areas of Japan that were later withdrawn after it became clear the rocket would not fly over the islands.

 

SEVERAL FAILURES, ONE SUCCESS

The North’s first bid to launch the new Chollima-1 satellite rocket, on May 31 last year, ended after a failure in the second stage. State media blamed that setback on an unstable and unreliable new engine system and fuel.

South Korea retrieved the wreckage of that satellite from the sea and said an analysis showed it had no meaningful use as a reconnaissance platform.

Another attempt in August also ended in failure, with stages of the rocket boosters experiencing problems resulting in the payloads crashing into the sea.

North Korea’s space authorities had described the August failure after the rocket booster experienced a problem with its third stage as “not a big issue” in terms of the rocket system’s overall reliability.

In February, US space experts said North Korea’s first spy satellite, dubbed the Malligyong-1, was “alive,” after detecting changes in its orbit that suggested Pyongyang was successfully controlling the spacecraft – although its capabilities remain unknown.

North Korean state media reported that the satellite had transmitted photos of the Pentagon and White House, among other areas, but has not released any of the images.

The successful November launch was the first after North Korean leader Kim Jong Un made a rare trip abroad in September and toured Russia’s most modern space launch center, where President Vladimir Putin promised to help Pyongyang build satellites.

Neither country has elaborated on the extent of that future aid, which could violate UN Security Council resolutions against North Korea.

Russian experts have visited North Korea to help with the satellite and space rocket program, South Korea’s Yonhap news agency reported, citing an unnamed South Korean senior defense official.

Pyongyang has said it needs a military reconnaissance satellite to boost monitoring of US and South Korean military activities. – Reuters

Operations to destroy illegal roads in Colombia’s Amazon hit standstill, sources say

STOCK PHOTO | Image by Justus from Pixabay

BOGOTA – Government measures to destroy illegal roads in and around Colombia’s Amazon rainforest are stalled, eight sources told Reuters, with one operation suspended altogether over concerns it could set back peace talks between rebels and President Gustavo Petro’s administration.

The construction of roads through rainforests in Colombia by rural communities, cattle ranchers and illegal armed groups is a major contributor to deforestation, environmental experts and scientists say. That is especially critical in the Amazon, which absorbs huge amounts of carbon that contributes to climate change and is already a focus of concern.

There are at least 12 illegal roads in and around Chiribiquete national park – a UNESCO world heritage site in Colombia’s Amazon. But there are no known operations underway to destroy them, environmental procurator Gustavo Guerrero told Reuters, despite Petro’s promises to protect the environment.

Reuters spoke to the sources on condition of anonymity, who detailed how one government operation to demolish a road cutting into Chiribiquete was halted and several other planned operations not begun. The stalled and suspended plans have not been previously reported.

Petro has made the environment a focus of his speeches both at home and abroad, and his government celebrated a 29% reduction in deforestation during 2022.

The delays could prompt disciplinary action against officials for failing to protect the environment, the procurator’s office, an independent public watchdog, said.

Neither Petro, his office nor any national official has impeded the destruction of the Yari Yaguara road, the office said in a statement, referring to one of the roads flagged by the sources.

The Yari Yaguara road has not been discussed at peace talks with the Estado Mayor Central (EMC) rebels, the statement said, adding the process to destroy it was advancing in line with legal requirements.

In comments to Reuters, Environment Minister Susana Muhamad emphasized that operations to destroy roads are part of a comprehensive strategy that includes peace efforts, human rights and the fight against deforestation.

“The operations and their planning continue in the fight against deforestation and environmental crimes,” Ms. Muhamad said in a text message.

The defense ministry said in a statement late on Monday that all of its operational, intelligence and investigative capacities were available for the destruction of the Yari Yaguara road, but that the operation had to take place with inter-institutional coordination.

Security forces will follow any accords reached between the government and the EMC, the ministry said, adding it could not provide a possible date for destruction of the road.

Six people familiar with the matter said the operation to destroy a road bisecting Chiribiquete was ready last December. The operation did not proceed after the military expressed concerns over potential clashes with locals and broader government concerns about setting back already fraught peace talks with the EMC, who operate in the area, sources said.

The EMC rebels have consolidated control in parts of the country, leading to what some call a pseudo-state where Colombia’s government has little influence. A ceasefire has already been canceled in some provinces.

Two sources said an operation to destroy the road was also planned for January, while another said plans were once in place to deal with all illegal roads.

“It’s like a sickness that keeps spreading,” said one of the sources, referring to the lack of action on illegal roads and the environmental damage they cause by increasing access to once unreachable forest.

 

‘EVIDENT FAILURE’

The procurator’s office last year demanded that the environment ministry destroy another illegal road close to Chiribiquete, without results.

“We’re not aware of any operation to close or disable any illegal roads in the Amazon,” Mr. Guerrero said in an interview. “There is an evident failure in the execution of preventive and precautionary measures for those roads.”

The police plan to destroy the road highlighted by the procurator’s office but have not taken action, one of the sources said.

Mr. Guerrero said his office has begun a disciplinary investigation into the government’s general lack of progress. The procurator’s office has the power to sanction officials up to government ministers and remove them from their posts.

The government expects to report another drop in deforestation for 2023, but minister Muhamad in April warned destruction was increasing in 2024 amid a prolonged drought.

Even if Mr. Petro’s government has good reason for calling off operations, the lack of action on illegal roads contradicts his promises to address deforestation, one of the sources said.

“In the end, they aren’t taking action. Something must be done.” – Reuters

Trump seeks to deny prosecutors’ gag-order motion in documents case

Lawyers for Donald Trump on Monday asked a federal judge to reject prosecutors’ request for a gag order limiting what the former US president can say about law enforcement officers involved in the case accusing him of mishandling sensitive documents.

Mr. Trump’s team also asked US District Judge Aileen Cannon in Fort Pierce, Florida, to impose sanctions and pursue civil contempt findings against “all government attorneys who participated in the decision to file the motion.”

In the documents case, one of four criminal prosecutions of Mr. Trump, prosecutors have brought 40 counts of illegally retaining sensitive national security documents after leaving office. Trump has asserted his right to retain them.

On Friday, prosecutors asked Ms. Cannon to review Mr. Trump’s bail conditions and issue an order to prevent him from making statements that pose a danger to law enforcement.

Special Counsel Jack Smith said the request was necessary because of several “intentionally false and inflammatory statements” that Mr. Trump made recently about the FBI search of his Mar-a-Lago golf resort in Florida in August 2022.

Mr. Trump, the Republican challenger to Democratic President Joe Biden in the Nov. 5 election, has falsely claimed in fundraising messages sent by his campaign that the FBI was authorized to attempt an assassination.

Mr. Smith argued that Mr. Trump’s mischaracterizations have endangered law enforcement officers and that limiting such comments does not restrict legitimate speech.

In Monday’s filing asking the judge to reject the gag order, Trump lawyers Todd Blanche and Christopher Kise accused prosecutors of “bad-faith behavior” by rushing to file the request on a Friday night before a holiday weekend and of failing to give the defense team sufficient time to discuss it before filing, violating local court rules.

The defense team said that violation should merit sanctions against prosecutors, including possible payment to cover expenses incurred as a result.

The defense also argued that prosecutors’ request for a gag order itself unfairly limits Trump’s free speech rights in the election campaign.

There was no indication from the court file when Cannon would rule on the motions from each side.

Mr. Trump’s criminal trial in New York, on charges that he falsified business records to cover up a hush-money payment to porn star Stormy Daniels before the 2016 election, is scheduled to resume on Tuesday with closing arguments.

Mr. Trump also faces charges in Washington and Georgia over attempts to overturn his 2020 election loss to Mr. Biden. – Reuters

UK’s Sunak proposes tax cuts for pensioners in new election pledge

British Prime Minister Rishi Sunak — REUTERS

British Prime Minister Rishi Sunak on Monday proposed tax cuts for millions of pensioners in his latest campaign pledge, highlighting the importance of older voters in the upcoming July election.

Sunak’s Conservative Party said it would introduce a new age-related allowance and deliver a tax cut of around 100 pounds ($128) for each of 8 million pensioners in 2025, rising to almost 300 pounds a year by the end of the next parliament.

“This bold action demonstrates we are on the side of pensioners. The alternative is Labour dragging everyone in receipt of the full state pension into income tax for the first time in history,” Mr. Sunak, who last week called a general election for July 4, said in the statement.

The number of pensioners in Britain rose by 140,000 to 12.6 million in the year to February 2023. Close to 50 million Britons will be eligible to vote in the election, which opinion polls predict is likely to end 14 years of Conservative rule in the country.

The Conservative Party said the proposal comes alongside the its commitment to the so-called triple lock, which guarantees increases to publicly funded pensions by the level of earnings, inflation or 2.5%, whichever is highest.

Labour has also committed to retain the policy, which was introduced by a Conservative government in 2011 to prevent pensioners from falling into poverty.

However, costs associated with it have come under increased scrutiny in recent years after British inflation soared, pushing up the government bill for state pensions by an additional 11 billion pounds last year.

The new proposal, which the party termed “triple lock plus,” will cost 2.4 billion pounds a year by 2029/30 and be funded through the government’s previously announced plan to raise an extra 6 billion pounds a year by clamping down on tax avoidance and evasion, the party said.

“This is just another desperate move from a chaotic Tory party torching any remaining facade of its claims to economic credibility,” Labour shadow paymaster general Jonathan Ashworth said in a statement on the plans.

The paymaster general falls under the Treasury and acts as a banker for most government departments. – Reuters

Philippine authorities say 7 dead after storm

STOCK PHOTO | Image by StockSnap from Pixabay

MANILA – Philippine authorities said at least seven people had been killed by tropical storm Ewiniar, which hit the country on the weekend, and President Ferdinand Marcos Jr said on Tuesday that search and rescue efforts would continue.

Ewiniar brought strong winds and heavy rain in provinces south of the capital, shutting down airports and seaports and disrupting power supply.

The storm was heading towards east coast of Japan on Tuesday, with sustained winds of up to 130 kilometers per hour (80 mph) and gustiness of up to 160 kph (100 mph).

A 14-year-old girl was confirmed dead in southern Misamis Oriental province after a tree fell on a parked vehicle she was boarding. Another student was injured, the national disaster agency said in a report.

In Quezon province, east of the capital, six people were reported dead, police major Elizabeth Capistrano told DWPM radio station. Among the deceased were two men, aged 56 and 22, who drowned, and a 39-year-old man who was hit by a falling tree.

Marcos, speaking ahead of a state visit to Brunei, said the storm affected nearly 27,000 people, and disrupted operations of three airports and nine seaports over the weekend.

Ewiniar was the first tropical storm to hit the Philippines this year. The Southeast Asian nation sees an average of 20 storms annually, often resulting in heavy rains, strong winds, and deadly landslides. – Reuters

BSP to maintain ‘restrictive’ policy

Customers buy food items in Malate, Manila, May 16, 2024. — PHILIPPINE STAR/EDD GUMBAN

By Luisa Maria Jacinta C. Jocson, Reporter

THE Bangko Sentral ng Pilipinas (BSP) will keep monetary policy settings “restrictive” as upside risks to inflation remain.

“Given upside risks, the BSP has decided to sufficiently maintain a restrictive policy stance in order to ensure that we anchor inflation expectations, so that it will not result in further second-round effects,” BSP Senior Assistant Governor Iluminada T. Sicat said at the Philippine Economic Briefing on Monday.

The central bank is anticipating faster inflation from May to July, but expects it to return to within the 2-4% target after.

“At the end of the year, the average inflation rate, based on our risk-adjusted outlook [will be] within the target, but on the upper end of the target range,” Ms. Sicat said.

The BSP’s baseline forecast for inflation this year is 3.5% while its risk-adjusted forecast is 3.8%.

“That is precisely the reason why the BSP must be very careful not to bring down interest rates too early or else we may not be able to address some of the upside risks that we are seeing in the future,” she added.

The Monetary Board stood pat for a fifth straight meeting in May, keeping its benchmark rate at a 17-year high of 6.5%.

BSP Governor Eli M. Remolona, Jr. earlier said the central bank could begin policy easing as early as August.

International Monetary Fund (IMF) Representative to the Philippines Ragnar Gudmundsson said the BSP should maintain a “sufficiently restrictive” monetary policy stance until inflation settles firmly within target.

He also said domestic data should be the primary consideration when it comes to monetary policy.

“The suggestion not to follow the Fed too closely needs to be understood in the context of efforts to tame domestic inflationary pressures,” he said. “When considering the path of monitoring policy and policy interest rate decisions…  the BSP’s decisions in this case should first and foremost be data-dependent and driven by domestic price considerations.”

However, he noted that the US Federal Reserve actions should be considered as well since they also affect capital outflows.

150 BPS OF RATE CUTS
Meanwhile, Finance Secretary Ralph G. Recto said the Monetary Board could reduce the policy rate by as much as 150 basis points (bps) in the next two years.

“It’s possible that you may have a rate cut this year and possibly more rate cuts next year,” he said at the Philippine Economic Briefing. “Surely, I don’t expect interest rates to go any higher. If not, if there is time, they will start to go down, maybe 150 bps in the next two years.”

Mr. Recto, who sits on the Monetary Board, said the BSP has room to reduce rates by the third quarter.

“That’s very much possible. It all depends on the inflation outlook, and I suppose what the Fed does. Those spreads should not be too different between the US and the Philippines or else you might have flight to safety. But yes, it seems like inflation is going down,” he said.

The Finance chief also expects May inflation to stay within the target. May inflation data will be released on June 5.

Headline inflation picked up to 3.8% in April from 3.7% in March, its third straight month of acceleration. However, it was the fifth straight month that inflation settled within the 2-4% target range.

Mr. Recto said it is easier to reduce rates if inflation can settle firmly within the target.

“But we’re also mindful not only of domestic data but of what the Fed will do,” he said. “It all depends on what our inflation data [are]. So that’s the first thing that we look at… Then you look at what the Fed will do.”

PESO WEAKNESS
Meanwhile, BSP’s Ms. Sicat noted that while the central bank is monitoring the peso’s recent weakness, it prefers to allow the markets to determine the exchange rate.

“I would like to reiterate the FX (foreign exchange) policy of the BSP. We do not target any specific exchange rate level. We just let the market determine the level of exchange rate,” she said.

The peso closed at P58.11 a dollar on Monday, strengthening by eight centavos from its P58.19 finish on Friday. Last week, the peso closed at the P58-per-dollar level for the first time in over 18 months.

“We look at whether there is presence of market stress. Because if we let the market stress to be left unattended, it would affect inflation expectations. And that’s something that we are avoiding,” Ms. Sicat said.

“Given the fact that all of us are being affected by the current position of the Federal Reserve, I think this is only temporary. And eventually, once things clear up, it will be the fundamentals that will determine the level of exchange rate.”

National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said inflation expectations would not be affected as long as the peso does not remain weak for a prolonged period.

“It depends if it stays at that level for a long time, but if it’s just temporary, I don’t think it will have much effect on the overall future, but if it stays there a longer time, of course it will affect expectations and then prices, output and so on,” he said.

Meanwhile, Mr. Gudmundsson said that as long as there is no “sharp or prolonged” depreciation, its impact on inflation remains manageable.

“If you’re talking about the current account deficit, we also need to think about the fact that some depreciation can also support the exports of the Philippines, which in turn has a positive impact on the current account deficit,” he added.

Exchange rate flexibility is also a country’s “first line of defense against external shocks,” Mr. Gudmundsson said.

DBCC won’t revise target ‘for now,’ says Balisacan

The Philippine economy is expected to expand by 6-7% this year. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Beatriz Marie D. Cruz, Reporter

THE Development Budget Coordination Committee (DBCC) is not planning to revise next year’s growth target “for now,” National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said.

“Until we see the numbers for this year, we won’t revise the numbers for next year,” he told reporters on the sidelines of the Philippine Economic Briefing on Monday.

The DBCC earlier tweaked its 2025 growth target to 6.5-7.5% from 6.5-8%.

Mr. Balisacan said the Philippine central bank’s “less hawkish” tone would affect consumption in the near term, but it would take longer to affect future investments.

Private spending accounts for nearly a quarter of gross domestic product (GDP) growth.

“[Rate cuts] could have immediate effects especially for those who are planning or have been planning to buy durable consumer goods,” he said.

“But for investments, that could have longer-term effects because if interest rates are expected to be lower in the coming months, investors may wait until (the cut) will materialize, and then it will take time before that actual investment will take place.”

Last week, the Monetary Board stood pat for the fifth straight meeting, keeping its key policy rate at a 17-year high of 6.5%. However, the BSP signaled a possible monetary easing by August. 

Mr. Balisacan said a rate cut would also improve consumer expectations.

“If people expect that the interest rate will be lower in the coming months, then that makes people… prepare for that investment so that they will be ready to go to their banks.”

At the economic briefing, Finance Secretary Ralph G. Recto said the government must ramp up spending in infrastructure and human capital development programs to drive growth.

“These two investment areas will provide the highest multiplier effect in the short term and in the long term,” he said.

The Philippine economy grew by 5.7% in the first quarter despite weak consumption, inflation and high interest rates. The DBCC is targeting 6-7% growth this year.

Mr. Recto also cited the need to increase investments in education and social services.

“We aim to fully equip Filipinos with new technological know-how so we can position ourselves as the hub for technology-driven industries,” he added.

Stronger consumer spending fueled by remittance inflows and the expanding labor market would also bolster growth, Mr. Recto said.

The increasing number of Filipinos engaged in formal and stable jobs “reinforces the Philippines’ path towards becoming an upper middle-income country next year,” he added.

The Finance chief cited projections by multilateral lenders that the Philippine economy would outperform its Southeast Asian neighbors.

“By 2033, our economy will nearly triple in size, placing us in the league of economic giants like China, Japan, India and South Korea, and we are expected to continue outpacing the growth of Asia’s economic powerhouses in the years to come,” he said.

Meanwhile, Mr. Balisacan said sustained and inclusive growth would help reduce poverty incidence to 9% by 2028.

“We must also strengthen our social protection system [for] those who are unable to join the labor market because of their personal circumstances, or because they suffer certain shocks, like victims of typhoons or disasters,” he said.

“We should have a system that prevents them from going down the poverty line.”

Data from the Philippine Statistics Authority showed that the Philippines’ poverty incidence, or the proportion of poor Filipinos whose per capita income is not sufficient to meet their basic food and nonfood needs, fell to 22.4% in the first half of 2023 from 23.7% two years earlier.

This was equivalent to 25.242 million poor Filipinos, lower than 26.137 million in the first half of 2021.

Central bank to cut rates by up to 150 bps — survey

The main office of the Bangko Sentral ng Pilipinas in Manila. — BW FILE PHOTO

THE Bangko Sentral ng Pilipinas (BSP) could reduce rates by up to 150 basis points (bps) this year, its survey of private sector analysts showed, as inflation is likely to fall within the 2-4% target range.

In the Monetary Policy Report for May 2024, the results of the BSP’s survey showed analysts expect the policy rate to be reduced by 25 bps to 150 bps by yearend.

“The results of the survey showed that most of the analysts anticipate current monetary policy settings to remain unchanged in Q2 2024,” it said.

The Monetary Board earlier this month kept its benchmark rate at a 17-year high of 6.5% for a fifth straight meeting. Its next policy review is on June 27.

For the second quarter, most analysts anticipate monetary policy settings to remain unchanged.

“For the third quarter of 2024, the majority of the analysts foresee policy settings to remain unchanged, although about the same number of respondents expect a 25-bp cut in the policy rate during the period,” the BSP said.

BSP Governor Eli M. Remolona, Jr. earlier said the Monetary Board’s first rate cut could be delivered in August, with possibly another cut before the end of the year.

The central bank could cut by up to 25 to 50 bps this year, he added.

“For 2025, BSP is seen to further loosen its policy stance by a range of 25 to 250 bps. For 2026, analysts expect an additional reduction of about 50 to 150 bps in the policy rate,” the central bank said in the report.

Meanwhile, the survey showed that inflation expectations were “well-anchored.”

“Relative to the February 2024 [report], the shape of the May 2024 BSP survey of external forecasters (BSEF) probability distribution for analysts’ inflation forecasts for 2024 and 2025 has narrowed, implying an increased probability that inflation will settle within the 2-4% target band,” it said.

“This could indicate a further anchoring of inflation expectation.”

Analysts’ mean inflation forecast for this year was at 3.7%, lower than their previous 3.8% estimate. This was higher than the BSP’s 3.5% baseline forecast for 2024 but within the 2-4% target.

Inflation quickened for a third straight month to 3.8% in April. For the first four months, headline inflation averaged 3.4%.

“Analysts expect within-target inflation over the policy horizon, although settling at the upper end of the target range as uncertainty lingers. Upside risks continue to dominate due mainly to supply chain disruptions,” the BSP said.

The survey showed that upside risks to inflation include high food and oil prices, the effect of the El Niño dry spell and the possible impacts of La Niña.

On the other hand, downside risks cited include easing food and nonfood inflation and waning inflationary pressures.

“Based on the probability distribution of the forecasts provided by 15 out of 20 respondents, there is a 77.2% chance (from 71.5%) that inflation will settle within the 2-4% target range in 2024,” the BSP said.

Meanwhile, the survey showed that there is a 22.8% chance (from 28.3%) that inflation could breach the upper end of the target.

The central bank earlier said inflation could temporarily accelerate above the target from May until July due to positive base effects.

“Meanwhile, expectations for 2025 and 2026 remain slightly above the midpoint of the inflation target range,” it added.

The BSP expects inflation to average 3.3% in 2025. — Luisa Maria Jacinta C. Jocson

Energy dep’t warns Luzon grid may experience red alerts until next week

In an advisory on Monday afternoon, the National Grid Corp. of the Philippines (NGCP) said the Luzon grid was placed under red alert status from 1-5 p.m. and 6-10 p.m. — PHILIPPINE STAR/EDD GUMBAN

By Sheldeen Joy Talavera, Reporter

THE LUZON GRID could face red alerts until next week if the power plants that experienced forced outage or derated capacities fail to resume operations, the Department of Energy (DoE) said on Monday.

“If the situation does not improve, if the plants that went offline because of the typhoon do not come back by next week, probably we’ll have a red alert also next week,” Energy Undersecretary Rowena Cristina L. Guevara said at a media briefing on Monday.

However, she said the DoE expects a total of 4,000 megawatts (MW) to come online this year, including 2,000 MW from conventional plants and 2,000 MW from renewables.

“This week, we expect to have some improvements but still we are dependent on having all of them back working under more normal conditions as the weather improves,” Energy Secretary Raphael P.M. Lotilla said.

In an advisory, the National Grid Corp. of the Philippines (NGCP) said the Luzon grid was placed under red alert status from 1-5 p.m. and 6-10 p.m.

A yellow alert was also raised in the Luzon grid from 12-1 p.m., 5-6 p.m., and 10 p.m. to 12 a.m.

The grid had 11,810 MW in available capacity, while the peak demand hit 11,785 MW.

“[Typhoon Aghon] has caused a substantial decrease in available power supply in the grid at a time when the hydropower plants have not yet recovered from their low water supply,” Mr. Lotilla said.

Thirty-four power plants were either on forced outage or at derated capacities as of Monday morning, which resulted in 4,497.3 MW being unavailable to the grid.

Aghon (international name: Ewiniar), the first storm of the year, intensified into a typhoon over the coastal waters of Burdeos, Quezon on Sunday evening.

In an 11 a.m. bulletin, the Philippine Atmospheric, Geophysical and Astronomical Services Administration said Typhoon Aghon maintained its strength while moving northeastward over the Philippine sea.

One of the power plants on shutdown was the 1,200-MW Ilijan power plant after its floating storage unit had to be disconnected and relocated for safety reasons since Aghon entered the Philippine area of responsibility.

Pagbilao Units 1 and 2 with a total capacity of 764 MW and Unit 3 with a capacity of 420 MW were also shut down, the DoE said.

Operations were also halted at the following plants: Masinloc coal-fired thermal power plant 3 with a capacity of 335 MW, San Buenaventura Power Limited coal power plant with 455 MW, and Botocan hydroelectric power plant with 20.8 MW.

“Several hydropower plants are derated as you know and despite the typhoon, they have not yet recovered their normal levels,” Mr. Lotilla said.

He urged consumers to conserve energy “to minimize the dispatch of the more expensive oil-based power plants.”

“The oil-based power plants, however, have been useful in so far as providing power to the grid particularly in the absence of the hydropower plants,” he said.

He also encouraged commercial and industrial consumers to continue to participate in the Interruptible Load Program (ILP) of distribution utilities.

Under the program, large power consumers are asked to use their generation sets or shift their operations instead of getting power from the grid.

This is to spare households from power interruptions during instances of red alert or when supply is insufficient to meet the demand.

The Energy Regulatory Commission (ERC) said it had suspended the Wholesale Electricity Spot Market (WESM) for the Luzon region due to the red alert.

“The operations of the WESM shall remain suspended until issuance of a notice of market resumption by the ERC,” the regulator said in a statement.

WESM is the trading floor for electricity where energy companies buy power when their long-term contracted power supply is insufficient to meet customer needs.

Earlier this month, the ERC suspended WESM trading during red alerts to prevent a spike in electricity prices.

As of the 2 p.m. update, the NGCP said transmission lines and facilities were under normal operations.

Web attacks on PHL companies more than triple

TOWFIQU BARBHUIYA-UNSPLASH

ONLINE attacks targeting Philippine companies more than tripled last year from 2022, Kaspersky said on Monday, highlighting the urgency of boosting cyber defenses against web threats that can reverse the benefits of digitalization.

In a statement, the global cybersecurity company said the number of web threats on local companies jumped to 1.69 million in 2023 from almost 500,000 a year earlier.

Web threats detected and blocked among Southeast Asian companies only increased by 0.03% to 13.34 million.

These numbers were calculated using Kaspersky’s business-to-business products installed in companies of various sizes, it said.

Cybercriminals launched an average of 36,552 daily online attacks targeting businesses in the region last year, Kaspersky said, adding that the growth in the region’s digital economies has opened opportunities for both people and companies.

“As most governments in the region build and boost their policies to foster their digital economy and infrastructure, it is urgent for local businesses to prioritize strengthening their cyber defenses against threats lurking online which can hamper their efforts to harness the benefits digitalization brings about,” Yeo Siang Tiong, general manager for Southeast Asia at Kaspersky, said in the statement.

Web-based or online threats are a category of cybersecurity risks that may cause an undesirable event or action via the internet.

Web threats occur through end-user vulnerabilities, web service operators and web services themselves.

“Regardless of intent or cause, the consequences of a web threat may damage both individuals and organizations,” Kaspersky said.

Singaporean companies faced 86% more web threats last year at 1.65 million, while Thai companies had a 24% jump to 1.53 million, it said.

On the other hand, web threats on Indonesian companies fell by 23% to 4.97 million, while Malaysian businesses had 15% fewer attacks at 1.54 million. Vietnamese companies had 21% fewer attacks at 1.96 million.

Mr. Yeo expects companies to take their cybersecurity a step forward beyond installing basic firewalls and endpoint solutions this year

“With the massive data all types of organizations are handling now and the immense reputational and financial damages an attack can result in, an adaptive and intelligence-led security solutions and service portfolio is the need of the hour,” he said.

Kaspersky cited a 2023 PwC study that found that 28% of businesses in the region confirmed that they were more exposed to cyberattacks because of their digitalization efforts.

“The external pressure to disclose cyber-incidents and comply with cybersecurity practices is also higher now for 16% of the respondents surveyed,” Kaspersky said. — Aubrey Rose A. Inosante

Meralco eyes bids for 500MW of RE capacity

PHILSTAR FILE PHOTO

MANILA Electric Co. (Meralco) on Monday said it has started seeking bids for 500 megawatts (MW) of renewable energy (RE) capacity to comply with a state requirement.

In a statement on Monday, the power distributor said the competitive selection process is pursuant to the Energy department’s policy on renewable portfolio standards.

It also “forms part of Meralco’s commitment to source an increasing portion of its supply requirements from RE sources,” it added.

The renewable portfolio standards mandate distribution utilities, generation companies and retail electricity suppliers to get a portion of their energy supply from eligible renewable energy sources.

In 2022, the Department of Energy raised the share requirement of on-grid power suppliers to 2.52% from 1%.

The 10-year power supply agreement resulting from the competitive selection process will cover Meralco’s 350-MW mid-merit requirement starting February 2025, which will increase by 150 MW a year later.

The government requires distribution utilities to choose the cheapest electricity supply via a competitive bid. Bidders have until June 7 to express interest.

A pre-bid conference will be held on June 17, while the deadline to submit bids was set for July 17.

“As part of its long-term sustainability strategy, Meralco has already contracted 1,880 MW of RE capacity from various suppliers, exceeding its initial target of 1,500 MW,” the company said.

Renewable energy is expected to account for 22% of Meralco’s supply portfolio by 2030.

Meralco has failed to secure bids for its 260-MW peak requirement in the absence of interest for the second round of the competitive selection process.

Based on the rules of the Energy Regulatory Commission, the company may engage in negotiated procurement after two failed bids, Meralco said.

Meralco negotiated with San Roque Hydropower, Inc., one of the bidders in the first round, for the supply.

But Meralco said San Roque Hydropower withdrew because “will not be able to generate the required portion of the target 260-MW peaking capacity due to El Niño.”

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

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