Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 1563

Philippine Treasury says Q3 domestic debt sales to raise $10.7 bln

WIKIPEDIA/JUDGE FLORO
MANILA – The Philippines plans to raise as much as 630 billion Philippine pesos ($10.70 billion) from the sale of treasury bills and bonds in the third quarter, the Bureau of the Treasury (BTr) said on Thursday.
The BTr would hold weekly auctions for 91-day, 182-day and 364-day T-bills in July to September, offering up to 20 billion pesos each.
It would also offer 115 billion pesos of T-bonds each in July and September, and 140 billion pesos in August, BTr said in a posting on its website. – Reuters

Philippines plans 200,000 metric tons of sugar imports, minister says

ALEXANDER GREY-UNSPLASH
MANILA – The Philippines is looking to import up to 200,000 metric tons of sugar by September to fill a projected supply shortfall before the harvest season, its farm minister said late on Wednesday.
“The current stock will fall by August, September, so we have to (cover a gap) of up to 200,000 tons by then,” Agriculture Secretary Francisco Tiu Laurel told reporters. – Reuters

Nintendo’s Payday Sale on Shopee: Enjoy massive discounts up to 40% off and flexible payments with Spaylater, 0% interest for 3 months

Calling all gamers and Nintendo enthusiasts! Nintendo’s Payday Sale on Shopee is here, and it’s packed with incredible offers that will elevate your gaming experience. Whether you’re looking to upgrade your console or dive into the world of Nintendo for the first time, this sale is designed to delight with up to 40% off on select models and more.

Unbeatable Discounts 

Nintendo and Shopee have teamed up to bring you unprecedented savings on some of the most sought-after gaming consoles: 

  • Nintendo Switch Gray Console and Neon Blue Neon Red V2: Huge savings of 6000 OFF, bringing the price down from Php 17,990 to just Php 11,299.
  • Nintendo Switch Mario Red OLED: Save 4000 OFF, reducing the price from Php 19,990 to Php 15,990.

These discounts are not to be missed, especially for those looking to get their hands on the latest Nintendo consoles. Save more when you check out with Shopee’s Mega Discount Voucher up to Php 1,000 OFF!

Flexible Payments with Spaylater

In addition to these incredible discounts, Nintendo is offering flexible payment options through Spaylater on Shopee. This means you can spread the cost of your purchase over three months with 0% interest, making it easier than ever to bring home your favorite Nintendo console without straining your budget.

How to Take Advantage of the Sale

To make the most of Nintendo’s Payday Sale on Shopee:

  1. Explore Your Options: Consider which Nintendo console suits your gaming style and preferences.
  2. Use Spaylater Wisely: Take advantage of the 0% interest payment plan to manage your budget effectively.
  3. Apply Mega Discount Vouchers: Ensure you apply any available vouchers during checkout to maximize your savings. 
  4. Act Quickly: Sales events like these are popular, so don’t hesitate too long to secure your purchase.

Nintendo’s Payday Sale on Shopee is an opportunity not to be missed for anyone looking to elevate their gaming setup. With substantial discounts on Nintendo Switch consoles, flexible payment options through Shopee Spaylater, and additional perks like mega discount vouchers and free shipping, now is the perfect time to level up your gaming experience.

So, what are you waiting for? Head over to Nintendo’s official store on Shopee and browse the offers and secure your favorite Nintendo console at an unbeatable price. Whether you’re treating yourself or shopping for a loved one, Nintendo’s Payday Sale on Shopee promises gaming fun for everyone. Happy gaming! 

Shop here: https://bit.ly/SHPNintendoJune2024

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

[B-SIDE Podcast] Importance of road-worthy vehicles on the daily lives of Filipinos

Follow us on Spotify BusinessWorld B-Side

According to the World Health Organization, despite an alarming number of cases, road traffic injuries are often neglected public health issues. With this concerning issue, Mr. John Alison Uy of the Vehicle Inspection Center Operators Association of the Philippines (VICOAP) elaborated on the importance of road safety and road-worthy vehicles to avoid road crashes and deaths.

Editing by Arjale Queral

Follow us on Spotify BusinessWorld B-Side

A comprehensive guide to Astoria Hotels and Resorts’ MICE offerings

In today’s evolving landscape where business intersects with leisure, the strategic choice of a MICE-equipped (Meetings, Incentives, Conferences, and Exhibitions) hotel or resort holds significant importance. The selection process involves assessing state-of-the-art conference amenities, upscale lodging options, and diverse leisure activities to maximize the success of your corporate event.

Astoria Hotels and Resorts (AHR) is an esteemed domestic hospitality chain based in the Philippines. Renowned for its establishment of properties in prime tourist destinations across the country, the brand also boasts modern, expansive, visually appealing, and highly functional venues tailored for meetings, incentives, conferences, and exhibitions (MICE).

Astoria Palawan, Ready for Companies Big or Small

Situated alongside the scenic Sulu Sea, Astoria Palawan offers breathtaking views of lush landscapes and majestic mountain ranges that showcase the natural splendor of Palawan. The resort not only boasts stunning surroundings but also provides a wide range of recreational activities and upscale dining options for guests to savor. Amenities include several swimming pools, a recreation pavilion with karaoke and various games, and a selection of dining venues. Furthermore, catering to both business and leisure travelers seeking a seamless integration of work and leisure, the Mangrove Conference & Convention Center By Astoria and Palawan Waterpark By Astoria ensure an unforgettable experience characterized by both productivity and relaxation.

Mangrove Conference & Convention Center By Astoria is an ideal venue for companies looking to host significant business events or corporate celebrations with sophistication. The expansive Main Convention Hall spans 439 square meters and has a seating capacity of 450 people. For more intimate gatherings, Astoria Palawan provides three additional function rooms. The Raffia Hall offers 119 square meters of space and can accommodate up to 100 guests, while Buri and Dao rooms, with 49 square meters each, have a capacity of 50 guests each.

Astoria Palawan offers an elegant venue for corporate events seeking a serene setting. Aqua Cena boasts remarkable views of the resort’s waterpark, spanning a spacious 302 square meters to accommodate up to 180 guests. For those in search of a grand dining experience, The Reserve presents a distinctive setting for guests to savor a blend of local and international cuisine. With 280 square meters of space, this venue comfortably seats up to 170 attendees, who can indulge in the culinary delights while enjoying picturesque beachfront vistas.

Located just a short distance from The Reserve, Habitat offers a tranquil and intimate dining experience by the beach. With a floor area of 150 square meters, this restaurant can comfortably accommodate up to 90 guests, making it an ideal venue for private professional gatherings. Additionally, for those looking to end the evening with a touch of sophistication, Halo Dome provides a setting with a capacity of 70 people. This 115 square meter events space is suitable for hosting intimate gatherings, business meetings, and vibrant nights filled with music and entertainment.

To know more about Astoria Palawan, you may visit www.astoriapalawan.com. You may also follow them on Facebook, Instagram, TikTok, and YouTube.

You may also contact the Astoria Palawan team via:

Email: reservations@astoriapalawan.com 

Mobile: (+63) 998-961-3419 

Landline: (+63 2) 8687-1111 local 8302 

Astoria Boracay, Embark on Luxurious Corporate Retreats

Indulge in your ideal vacation experience at Astoria Boracay. Situated in the serene and upscale Station 1 of Boracay, this resort provides a peaceful retreat featuring a contemporary pool, a state-of-the-art fitness center, and an on-site dining venue. Ideal for both leisure travelers and individuals seeking venues for corporate meetings and social gatherings, this exclusive sanctuary guarantees a memorable island escape.

Astoria Boracay offers two function rooms spanning a total floor area of 121 square meters, capable of accommodating up to 80 individuals collectively. For smaller business groups, the rooms can be partitioned into two halves, with Function Room A accommodating 45 participants and Function Room B seating 32. These versatile spaces are ideal for hosting small business meetings, gatherings, or presentations.

Astoria Boracay offers stunning shoreline views and presents an intimate dining experience at its restaurant, Soleggiato, tailored for corporate executives. The restaurant boasts a 56-square-meter space that can comfortably seat up to 25 guests, making it a perfect setting for brief meetings accompanied by exceptional cuisine.

To know more about Astoria Boracay, you may visit www.astoriaboracay.com. You may also follow them on Facebook, Instagram, TikTok, and YouTube.

You may also reach out to Astoria Boracay via:

Email: reservations@astoriaboracay.com 

Mobile: (+63) 908-872-7922 

Landline: (+63 2) 8687-1111 locals 8739, 8740, 8738, and 8737 

Astoria Current, From Boardroom to Beachfront

Boasting a contemporary aesthetic tailored to the preferences of discerning clientele, Astoria Current is an ideal destination for individuals seeking an enjoyable and dynamic beach retreat, as well as those in pursuit of vibrant venues suitable for off-site professional conferences and social events. Featuring two luxurious pools, a spa, and a fully equipped gym, the resort’s sleek and modern architecture is designed to captivate today’s sophisticated business traveler.

Astoria Current’s Annex Building Function Room boasts a 140-seating capacity for medium-sized companies, with adequate space at 247 square meters that can be customized for different setups for events, receptions, and major company planning. For majestic views of the expansive Sulu Sea, the Sales Deck Function Room can be utilized to seat 100 people, thanks to its 223 square meter space.

To know more about Astoria Current, you may visit www.astoriacurrent.com. You may also follow them on Facebook, Instagram, TikTok, and YouTube.

You may also reach out to Astoria Current via: 

Email: rsvn@astoriacurrent.com  

Mobile: (+63) 998-968-1265 

Landline: (+63 2) 8687-1111 local 8731  

You may also book directly via www.astoriacurrent.com.

Astoria Bohol, Retreat to Breathtaking Baclayon

The Annex Building Function Room at Astoria Current offers a seating capacity of 140, making it suitable for medium-sized companies. With a spacious area of 247 square meters, this room can be tailored to various event setups, receptions, and corporate gatherings. Additionally, the Sales Deck Function Room, spanning 223 square meters, provides a picturesque view of the vast Sulu Sea and can accommodate up to 100 guests.

Organizations seeking scenic views of Baclayon’s natural beauty will find Astoria Bohol’s Lantawan Events Hall to be a delightful option. This hall offers 184 square meters of space, accommodating up to 60 guests and can be customized for both corporate conferences and social gatherings. For a taste of traditional Baclayon cuisine and a peaceful view of the Bohol Sea, look no further than Pamana. This restaurant can be arranged to host up to 30 individuals, ideal for intimate business meetings and small gatherings for key company stakeholders.

In anticipation of a larger gathering, Astoria Bohol offers the opportunity to host corporate events on its beachfront premises. With ample space capable of accommodating up to 300 guests, our venue can cater to a wide range of corporate functions and major events.

To know more about Astoria Bohol, you may visit www.astoriabohol.com. You may also follow them on Facebook, Instagram, TikTok, and YouTube.

You may also reach out to Astoria Bohol via: 

Email: rsvn@astoriabohol.com 

Landline: (+63 2) 5335-1111 local 8745/8746 

Mobile: (+63) 917-889-8275, (+63) 919-911-3961, (+63) 917-545-9683 

Astoria Hotels and Resorts are not just known for their luxurious accommodations and breathtaking locations, but also for their exceptional MICE offerings that cater to the diverse needs of business travelers. From state-of-the-art conference facilities to exquisite dining options and world-class amenities, Astoria Hotels and Resorts provide the perfect setting for successful meetings, conferences, and events.

With a strong commitment to excellence and customer satisfaction, Astoria Hotels and Resorts have established themselves as a premier choice for MICE travelers seeking both productivity and relaxation. Whether you are planning a corporate retreat, a team-building workshop, or a grand conference, Astoria Hotels and Resorts’ comprehensive MICE offerings ensure that every event is executed seamlessly, leaving an impression on attendees.

Experience the pinnacle of hospitality and innovation with Astoria Hotels and Resorts, where business meets leisure in the most spectacular way.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

MIRU’s track record: A concern for the US

By Rep. Rodante Marcoleta, SAGIP Party-List

An investigative piece by the US-based journal Politico has cast a spotlight on Miru Systems, questioning the deployment of their voting technology in Iraq and Congo — nations supported by US election funding but plagued by technical glitches. More than focusing on technological snafu, the article calls the attention of the US Agency for International Development (USAID) to reassess the wisdom of supporting countries using Miru technology.

Even more grimly, the Politico investigative report cited sanctions imposed by the US Treasury Department on the president of the Congo Election Commission for corruption — stating how he padded a contract for Miru’s machines by up to US $100 million which was then deposited into a company he controlled.

This scrutiny gains local significance as Miru bagged a sole-bidder contract with Comelec to supply voting equipment for the Philippines’ 2025 elections. Despite calls for vigilance from election watchdogs and lawmakers, Comelec’s lackluster response was: “The winners in Congo and Iraq are happy and satisfied with Miru’s performance.” Really?

Amplifying these concerns is the dubious connection between Miru and Russian elections. Miru is openly affiliated with Bauman Moscow State Technical University, a relationship instrumental in the development of election scanners used in Russia’s contentious 2018 presidential election and subsequently in Iraq, yet another authoritarian regime. Who knows—it might be the scanning technology we will use come 2025.

Miru’s involvement in Russia reportedly began around 2009 and extended to their recent 2024 presidential elections. It may be recalled that during the March 19 Senate hearing, the company representative boasted on the supply of technology in that Russian elections—which was marked by Putin’s sweeping victory for a fifth term. Such ties, ignored by Comelec amid the global pushback against Russian electoral practices, could cast a cloud of doubt over the transparency of the Philippines’ electoral venture.

Filipinos’ trust in Western-led democratic principles versus their skepticism of Russian and Chinese aggression, as revealed by Pulse Asia surveys, underscores the potential geopolitical conflict in Comelec’s choice. A recent survey by Pulse Asia confirmed this, with 80% of Filipinos expressing a desire for the Philippines to work with the United States to counter China’s increasing belligerence in the West Philippine Sea. Another survey revealed that 61% of Filipinos distrust China, while 58% distrust Russia. Comelec should seriously weigh the wisdom of being associated with a company doing business in Russia even as the administration labors to bolster our ties with the US and western democracies.

These unsettling revelations beg one question: Did Comelec even realize that the optical scanners it purchased might have originated from Russia, where elections are reportedly a farce? Proper due diligence should have alerted Comelec to these shady connections that could result to shady elections. The outcome of such due diligence, or lack of it, might not just impact on the credibility of our own elections, but also the nation’s international repute as a regional beacon of democracy caught in a tense geopolitical landscape.

That said, something smells fishy with Comelec’s choice. And the smell reportedly reeks from the Philippines all the way to the Cayman Islands in the Caribbean, North America, China, and Singapore.

This is a paid advertisement.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

CEOs worry over business viability

More than half of Philippines-based chief executive officers are worried over the viability of their businesses in the next decade, a survey showed. — PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Justine Irish D. Tabile, Reporter

OVER HALF of Philippine-based chief executive officers (CEOs) are concerned over the viability of their businesses in the next 10 years without reinvention, according to a report by PwC Philippines. 

The Philippine report of PwC’s 27th Global CEO Survey showed that 54% of CEOs believe that their companies “will not be economically viable in the next decade if they continue on their current path.” This is lower than the Asia-Pacific average of 63%.

Asked about the long-term viability of their businesses, 46% of Philippine-based CEOs expressed concern, much higher than the 34% average in the Asia-Pacific region.

Conducted from October to November 2023, the survey covered 1,774 CEOs in the Asia-Pacific region, including 35 CEOs in the Philippines.

More than half or 57% of Philippine-based CEOs are optimistic that the global economy will improve over the next 12 months, higher than the Asia-Pacific average of 40%.

Around 77% of Philippine-based CEOs said the United States is the most important for their growth prospects, while 40% cited China.

“The Philippines has undertaken efforts to improve its investment climate and attract foreign direct investment. This sustained growth and the positive investment climate could have promoted optimism among CEOs regarding both local and global economies,” PwC Philippines Deals and Corporate Finance Managing Partner Mary Jade Roxas-Divinagracia said in a statement.

For the next 12 months, 40% of Philippine-based CEOs identified geopolitical conflict as a key threat, while 37% cited inflation. At least 29% of the CEOs said macroeconomic volatility and cyber risks are also main threats.

PwC Philippines Chairman and Senior Partner Roderick M. Danao said that there is growing impetus to reinvent among Philippine business leaders.

“Many of our country’s business leaders are now working on accelerating the transformation of their business models, investing in technology and their workforce, and managing the risks and opportunities related to climate change,” Mr. Danao said in a statement.

“In this era of continuous reinvention, CEOs have vast opportunities to reshape their organizations and themselves, to thrive on disruption, and to transform aspirations into realities,” he added.

According to the report, 97% of the Philippine respondents said that they have already taken steps to change “how they create, deliver, and capture value over the past five years.”

Meanwhile, 86% said that they at least took one action that largely impacted their company’s business models.

However, 71% of the Philippine CEOs cite the lack of workforce skills as a barrier to reinventing the business models of their companies.

The other top challenges cited by business leaders are the lack of technological capabilities (69%) and competing operational priorities (65%).

Michael L. Ricafort, chief economist of the Rizal Commercial Banking Corp., said that businesses will need to digitize and adopt the best technologies globally to drive growth.

“These will help grow their business by leaps and bounds, further boost productivity and output, and reduce costs,” Mr. Ricafort said in a Viber message.

Aside from making their businesses viable, he said digitization and the adoption of the latest technologies will also help improve businesses’ competitiveness.

Sought for comment, Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said organizations that want to remain viable need to reinvent themselves by improving and adjusting to the current environment.

“Being relevant can ensure its existence and hopefully profitability and resilience,” he added.

AI IMPACT
According to PwC, CEOs are seeing generative artificial intelligence (GenAI) as a catalyst for reinvention “that will power efficiency, innovation, and transformational change.”

At least 60% of the CEOs in the Philippines are expecting GenAI to impact the workforce in the next three years, while 57% believe GenAI will positively impact revenue and profitability.

Mr. Danao said that they have been seeing “heightened interest” from business leaders in GenAI.

“Their enthusiasm over the opportunities for growth and innovation that GenAI brings demonstrates their understanding of the need for fundamental reinvention of their businesses,” he added.

However, 80% of the CEOs said that to be able to reap the “transformative benefits” of GenAI, there is a need to upskill the workforce.

Meanwhile, 69% of them are concerned about cybersecurity risks, while 57% are concerned about misinformation.

NCR wage increase likely in July, says Labor chief

Laborers are seen working on a construction site in Navotas City, June 22, 2024. — PHILIPPINE STAR/RYAN BALDEMOR

By Chloe Mari A. Hufana

A WAGE INCREASE in the Philippine capital and nearby cities is likely in July, based on past decisions by the regional wage board, according to the country’s Labor chief.

“There is always an adjustment based on historical data,” Labor Secretary Bienvenido E. Laguesma told reporters on the sidelines of an event on Wednesday. “The challenge is how much.”

He declined to give an estimate.

The wage board in the National Capital Region (NCR) is expected to release its decision on the petitions to raise the daily minimum wage on or before July 16, the anniversary of the previous wage order.

To recall, the NCR wage board last July approved a P40 increase, which brought the daily minimum wage to P610 for nonagriculture sector workers and P573 for agricultural workers.

The Employers Confederation of the Philippines (ECoP) on Wednesday sought minimum wage-setting mechanisms that consider productivity, the market value of jobs, and the financial capacity of businesses, especially micro, small, and medium enterprises.

This would “ensure sustainable job creation and business growth,” the group said in a resolution signed at the National Employment Summit.

Wage hike decisions should also consider the impact on the majority of the population that will not benefit from such adjustments, ECoP said.

ECoP Governor and Philippine Chamber of Commerce and Industry Director Arturo “Butch” C. Guerrero III said the wage-setting mechanism they are pushing for is through a tripartite system, not a legislated one.

The Senate last February approved on third and final reading a bill increasing the daily minimum wage in the private sector by P100.

At the House of Representatives, separate bills that seek to increase wages of private sector workers by P150 to P750 have been filed.

“A wage increase of P150 across the board nationwide will lift many workers out of poverty wages. This moderate increase represents about 24% of the NCR minimum wage of P610 per day,” Federation of Free Workers President Jose Sonny G. Matula said.

Filomeno S. Sta. Ana III, coordinator of Action for Economic Reforms, said a wage hike will “maintain the level of real wages.”

“[The] recent quarter showed a slowdown in consumption, which could suggest that people’s reluctance to spend because of higher prices,” he told BusinessWorld in a Viber message.

“So, an increase in minimum wage will not necessarily translate into a wage-price spiral so long as the minimum wage is tempered and is intended to adjust for inflation,” he added. “The wage hike intends to recover [the] previous level of disposable income, which, however, was eroded by high inflation.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort told BusinessWorld in a Viber message that a wage hike is needed, especially by the poorest of the poor, to cope with rising prices.

“Inevitably, [wage hike will contribute to inflation], through second-round inflation effects as seen in 2022 and 2023,” he added.

However, ECoP said a P15 increase in minimum wages for NCR workers is at par with the consumer price index’s rise.

“[Wage increase is] a delicate balancing act and I would like to look at the situation where the members of the board will be able to consider and look at the arguments, positions, and the stand offered during the public hearing,” Mr. Laguesma told reporters on Wednesday.

Meanwhile, ECoP urged the Marcos administration to develop national resilience programs, social protection mechanisms, and transition strategies to support both workers and employers as artificial intelligence (AI), machine learning, and other disruptive technologies reshape the workplace.

ECoP said schools should prioritize developing “life skills, technological skills and soft skills” in students to prepare them for employment.

“These technological disruptions together with issues on climate change, demographic shifts, and geopolitics will create both opportunities and challenges that will impact social dialogue and collaboration among bipartite and tripartite partners in addressing issues in a technology-driven environment,” according to the resolution signed by ECoP Chairman Edgardo G. Lacson and President Sergio R. Ortiz-Luis, Jr.

ECoP’s Mr. Guerrero told reporters that national resilience programs are needed to address the impact of the pandemic on businesses.

“Many people are taking jobs just to have a job. But their skills are not adept for the job they’re doing. They’re overqualified. So, it’s a matter of matching the jobs. That’s why we have a jobs program to make it appropriate,” he said.

The Technical Education and Skills Development Authority (TESDA) offers upskilling programs, he added, but they are outdated. Instead, an industry-led upskilling program should be undertaken.

“The government manual is not updated. It no longer fits. So, it should be industry-led. It should come from the employers. The TESDA manuals should be in collaboration with their old manuals and that’s what we will roll out,” he said. “Because if you roll out an outdated manual, you just wasted your time trying to upskill these people.”

Philippines’ current account deficit seen to further narrow this year

ICTSI

THE PHILIPPINES’ current account deficit is seen narrowing further this year amid a more positive global outlook, Fitch Solutions’ unit BMI said.

In a report dated June 25, BMI lowered its current account deficit forecast to 2.3% of gross domestic product (GDP) from 2.8% previously.

This is narrower than last year’s current account deficit which stood at 2.6% of GDP, but wider than the average of -0.4% from 2015-2019.

The BSP projects a $4.7-billion current account deficit for 2024, equivalent to 1% of GDP.

“A more optimistic global outlook was the main reason behind this revision. We initially anticipated a more significant downturn in worldwide demand,” BMI said.

“However, the global economy has proven to be much more resilient, prompting us to pencil in a stronger (global) expansion of 2.4% in 2024 after initially projecting global GDP growth of 2.1% at the start of the year,” it added.

The latest data from the BSP showed that the current account deficit stood at $1.7 billion in the first quarter, equivalent to -1.6% of GDP. This was lower than the $4.4-billion gap or -4.3% of GDP seen in the same period a year ago.

“Risks to our current account outlook lean towards a larger shortfall. Much hinges on trends in the global economy,” it said.

BMI said that it sees external demand weakening in the second half of the year, due to an expected economic slowdown in China, the United States, Japan, Hong Kong and Singapore.

“While external demand has held up relatively well in the first half of the year, we think that it will slow in earnest in the latter half as major trading partners face domestic economic headwinds of their own,” it said.

BMI said the tourism sector’s recovery may “not be as strong as the numbers suggest” and may be the “result of an anomaly.”

“International visitors are still 40% lower than prior to the pandemic even though revenues have already exceeded pre-pandemic levels. We have determined that this increase is due to a temporary change in spending patterns, driven by a backlog of travel demand after the pandemic,” it said.

The uptick in tourism revenues is expected to taper off soon, with some signs of a slowdown already emerging.

“Average expenditure to date this year is roughly 5% less than in 2023, once inflation adjustments are made,” BMI said.

Foreign investments are also seen to remain muted this year, a trend seen in other countries in the region.

“While we are of the belief that extensive reforms implemented in recent years will indeed pay dividends, the prevailing environment of high interest rates will keep a lid on investment activity for now,” BMI said.

BMI data showed FDI as a share of GDP averaged 1.9% in the last four quarters, lower than the previous decade’s average of 2.2%.

The Bangko Sentral ng Pilipinas (BSP) has kept the key rate at a 17-year high of 6.5% since October 2023.

In a separate report, BMI said that it expects the central bank to keep rates steady at its meeting on Thursday.

This is in line with a BusinessWorld poll conducted last week where all 15 analysts surveyed expect the Monetary Board to stand pat for a sixth straight meeting.

“Given that the economy has remained fairly resilient thus far, the Bank will be in no hurry to cut rates until price pressures have eased more convincingly,” BMI said.

BMI said it is keeping its positive outlook for consumer spending in the Philippines despite elevated interest rates.

“Easing inflation and a tight labor market will support spending, as real wage growth returns to positive territory, which will support purchasing power over the year,” it added.

The BSP expects inflation to temporarily accelerate to above the 2-4% target until July but settle within target after. — Luisa Maria Jacinta C. Jocson

Peso to remain weak as BSP appears less likely to defend

BW FILE PHOTO

THE PESO may remain weak against the dollar as the Bangko Sentral ng Pilipinas (BSP) is not expected to “strongly” defend the currency amid its recent dovish policy signals, Bank of America (BofA) Global Research said.

“(The Philippine peso) remains on the weaker side, taking cues from the BSP’s dovish turn in the last policy meeting and lack of concern on the FX (foreign exchange) moves,” it said in a report.

BofA Global Research said the “bearish positioning could slow further weakness” but the BSP appears less likely to defend the peso from falling to P59 against the US dollar.

“Geopolitical concerns need to be watched as another trigger for further weakness,” it added.

The peso closed at P58.86 against the dollar on Wednesday, weakening by nine centavos from its P58.77 finish on Tuesday. This was its weakest finish in over 20 months or since its P58.87-per-dollar close on Oct. 24, 2022.

The BSP earlier said that the peso’s recent performance is “temporary” given the expected delay in the US Federal Reserve’s policy easing.

BSP Governor Eli M. Remolona, Jr. had also said that it is a case of a “strong dollar” and not a weak peso due to the tensions in the Middle East.

To keep markets orderly and control speculation, the BSP said that it has intervened in the foreign exchange market in “modest” amounts.

“(Philippine peso’s) weakness may reflect concerns on a weak growth outlook which has also led to a dovish turn in BSP’s policy guidance,” BofA said.

“The governor’s comments about the possibility of a cut in the August meeting may have changed market expectations on the policy priorities between supporting the domestic economy vs. preserving FX stability,” it added.

Mr. Remolona earlier signaled the possibility of starting the easing cycle by August, for a total of 25-50 bps worth of cuts for the entire year.

“Lower rates in the Philippines have raised the chances of even narrower interest-rate buffer against (US dollar) rates, which may impact the hedging behavior of corporates,” BofA said, adding pressure could go up if the US dollar strength picks up or US yields rise again.

Meanwhile, BofA said that elevated inflation remains the top risk facing the Philippines.

“Food price shock and higher commodity prices in general remain the key risk for the Philippines, leading to a widening of the twin deficits,” it said.

Inflation could possibly breach the 2-4% target band until July, according to the central bank. The BSP expects inflation to average 3.5% for the full-year 2024.

“Geopolitical risks due to border clashes with China could impact investment flows,” BofA added. — Luisa Maria Jacinta C. Jocson

NexGen caps IPO price at P1.68 per share

FREEPIK

RENEWABLE ENERGY company NexGen Energy Corp. has priced its initial public offering (IPO) at P1.68 per share, matching its upper-end forecast.

The company announced the IPO price on June 25, as per a notice on the Philippine Stock Exchange (PSE) website.

It expects its shares to be officially listed on July 16.

NexGen Energy’s IPO comprises a primary offer of 300 million common shares and an overallotment option of up to 45 million secondary common shares. 

The offer period is set from July 1 to 8, based on its latest prospectus dated June 24.

If the schedule holds, NexGen Energy is expected to become the third company to go public this year. It will join OceanaGold (Philippines), Inc., which listed on May 13, and Citicore Renewable Energy Corp., led by Saavedra, which listed on June 7.

On Monday, the PSE approved NexGen Energy’s application for the initial listing of up to 1.49 billion common shares, inclusive of shares designated for its IPO, under the small, medium, and emerging board.

The company anticipates generating approximately P478.4 million in net proceeds, which will fund its renewable energy projects in Zambales, Cavite, and other regions.

NexGen Energy appointed Chinabank Capital Corp. as the sole issue manager and sole bookrunner, while Investment & Capital Corp. of the Philippines serves as joint lead underwriter for the offer.

Sought for comment, Globalinks Securities and Stocks, Inc. Trader Mark V. Santarina said in a Viber message: “This IPO is relatively small compared to previous ones, making it challenging to predict if it will trade below the IPO price.”

“Traditional energy sources are notoriously expensive, and NexGen Energy offers a promising solution for the Philippines’ transition to clean energy,” he added.

Mr. Santarina said the current market conditions are “a concern” for IPOs.

“With low trading volume and the overall market trend, it doesn’t seem like an ideal time for an IPO, especially since other candidates have deferred their listings,” he said.

NexGen Energy is a subsidiary of Power Energy, which is a holding company that has assets in hydropower, solar, wind, geothermal, as well as bulk water and distribution facilities.

Established in 2017, the company is eyeing to develop 1,683 megawatts (MW) of ground-mounted and floating solar plants, and onshore and offshore wind projects in the next five years.

It currently manages three solar plants through its subsidiary SPARC — Solar Powered Agri-Rural Communities Corp., with an aggregate capacity of 13.859 MW peak. — Revin Mikhael D. Ochave

MPTC proposes P40-billion expressway for Naic, Cavite

PHILIPPINE STAR/ MICHAEL VARCAS

PANGILINAN-LED Metro Pacific Tollways Corp. (MPTC) said it hopes to construct a P40-billion expressway in Naic, Cavite.

“We are in discussions with the provincial government of Cavite about a possible Naic connection to CALAX (Cavite-Laguna Expressway) in General Trias,” MPTC unit MPT South President and General Manager Raul L. Ignacio told reporters recently.

The proposal would be a public-private partnership (PPP) and would depend on the completion of the Bataan-Cavite bridge, Mr. Ignacio said.

“The route of the proposal will pass through Naic, Cavite, connecting General Trias through CALAX,” he added.

CALAX is a four-lane, 45-kilometer toll road connecting the westbound Manila-Cavite Toll Expressway (CAVITEX) and the eastbound Mamplasan rotunda to the South Luzon Expressway.

To date, only the 14.24-kilometer segment of the toll road is operational, data from its website showed.

“We were informed that (the Bataan-Cavite bridge) will push through, so (our proposal) should be executed,” Mr. Ignacio said.

He said the project cost will also depend on the number of interchanges to be constructed.

The Bataan-Cavite Interlink Bridge is a 32.15-kilometer marine bridge connecting Central Luzon to CALABARZON, or Cavite, Laguna, Batangas, Rizal, and Quezon. The Asian Development Bank is co-financing the project.

The bridge is expected to reduce travel time from Mariveles, Bataan, to Naic, Cavite, from five hours to 1.5 hours. It is expected to be completed by 2029.

For now, MPTC is in talks with the Cavite local government as mandated by the new PPP Law, Mr. Ignacio said.

In 2023, President Ferdinand R. Marcos, Jr. signed a measure aimed at streamlining the framework for PPPs.

The PPP Code, or Republic Act No. 11966, amended the Build-Operate-Transfer Law to create a unified legal framework for all PPPs at both national and local levels.

“We have submitted our intention to Cavite; we have to consult with them first on the rerouting and how to proceed,” Mr. Ignacio said.

MPTC is the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc. — Ashley Erika O. Jose

1...1,5621,5631,564...12,763Page 1,563 of 12,763
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube