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Tech brain drain fuels Philippines’ cybersecurity skills gap

STOCK IMAGE | Image by Dee from Pixabay

 – Nurses, engineers, doctors – now cybersecurity experts. As the Philippines counts the cost of brain drain, a surge in malicious cyber activity has highlighted the country’s digital security skills gap.

US cybersecurity firm Resecurity reported a 325% jump in hacking and other digital intrusions targeting the Philippines during the first quarter of 2024 amid rising tensions with China, largely over disputed territory in the South China Sea.

That prompted President Ferdinand Marcos Jr to launch a cybersecurity strategy to beef up the nation’s cyber defenses to combat attacks and digital crimes. Its military said last year it would create a cyber command.

But industry analysts say such plans could struggle due to big shortages of skilled “cyber warriors” in the Philippines, which is estimated to need tens of thousands of digital security professionals.

Whether targeting ordinary people, journalists or activists, online threats from doxxing to domain blocking and digital surveillance are rising in the Philippines and other Southeast Asian nations, highlighting a lack of resources and expertise to fight them, experts say.

“What the government doesn’t recognize is we’re having a brain drain not only in the healthcare sector but also in cybersecurity,” said JM Cipriano, a cybersecurity professional who has worked for a multinational company in the Philippines.

Despite a higher salary than other careers in IT, he said Filipino cybersecurity experts are being lured abroad by companies offering more money, better working conditions and relocation packages.

Practitioners in the Philippines can expect a monthly salary of between 40,000 and 90,000 pesos ($690-$1,560) – up to six-times the minimum wage, Mr. Cipriano told the Thomson Reuters Foundation.

But he said the Philippines was still losing cybersecurity talent to US companies with offshore offices in Manila, or companies in Singapore, the United Kingdom and the Middle East that offer more competitive salaries.

Globally, the shortage of cybersecurity professionals reached a record last year, with some 4 million vacancies around the world, according to cybersecurity nonprofit ISC2, with the gap growing fastest in developing countries.

 

‘ENORMOUSLY EXPENSIVE’

While part of the problem is migration from the Philippines, a major global exporter of labor, domestic shortages are also linked to inadequate training opportunities and policies to boost recruitment at a national level, experts say.

The need for cybersecurity professionals “is not well communicated to the different parts of the country”, said Angel Redoble, founder of the Philippine Institute of Cyber Security Professionals, a nonprofit pushing for a secure Philippine cyberspace.

Filipinos can study cybersecurity in only a handful of private universities with high tuition fees, and are often encouraged to pursue certifications for specific training and courses for 15,000 to 20,000 pesos.

Such barriers led 27-year-old former teacher Jaevik Madayag to abandon his plans of working in the field.

“Cybersecurity certifications are enormously expensive for Filipinos and having a certification doesn’t guarantee that you could enter that workforce,” he said.

With cybersecurity threats and data breaches on the rise, the government is taking steps to boost recruitment.

In January, it launched a new set of cybersecurity standards that schools and training centers can use for their program curriculum.

Under the new national cybersecurity strategy, there are plans for more specialist degrees and programs to upskill or retrain existing professionals.

Fostering accessible career progress will be vital, said Mr. Madayag, who now does IT support for a leading global tech company.

“Cybersecurity is a niche job in the IT industry,” he said. “You have to go through many paths and prerequisites and cannot jump ahead to practice.” – Reuters

RFM Corporation to conduct 2024 Annual Meeting of the Stockholders virtually on June 26

 


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Cocolife announces Annual Stockholders’ Meeting via remote communication on June 26

 

 


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New vehicle sales up 22% in April

Vehicles are seen along South Luzon Expressway in this file photo. — PHILIPPINE STAR/RUSSELL PALMA

By Adrian H. Halili, Reporter 

NEW VEHICLE SALES jumped by an annual 22% in April, amid steady consumer demand, an industry report showed.

A joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) showed new automotive sales rose to 37,314 units in April from 30,643 units in the same month last year.

Month on month, vehicle sales dipped by 0.4% from the 37,474 units sold in March.

Auto Sales (April 2024)CAMPI President Rommel R. Gutierrez said the industry posted “strong” year-to-date sales despite the month-on-month drop.

“On the demand side, positive consumer and business confidence plus stability in automotive finance boosted sales,” he said in a statement.

Commercial vehicles accounted for nearly three-fourths of sales in April. Sales went up by 16.9% to 27,272 units in April from 23,326 units a year ago. Month on month, sales fell by 0.4%.

Broken down, light commercial vehicle sales went up by 10.7% year on year to 19,561 units, while sales of Asian utility vehicles rose by 47.5% to 6,816 units.

Sales of light-duty trucks and buses dropped by 29.7% to 491 units, while heavy trucks plunged by 44.9% to 49 units. Medium truck sales rose by 40.9% to 355 units in April.

Meanwhile, passenger car sales surged by 37.6% to 10,069 units in April from 7,317 units sold in the same month in 2023. Month on month, sales slipped by 0.57%.

For the first four months of 2024, new vehicle sales increased by 14.8% to 146,920 units from 127,927 units a year ago.

Passenger car sales jumped by 19.4% to 38,280 units, while commercial vehicle sales grew by 13.4% to 108,667 units.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said higher car sales could be attributed to improved spending power of Filipino consumers despite elevated inflation and high interest rates.

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

“Lack of mass transport system also helped sustain the double-digit growth in vehicle sales. As well as more sales of electric and hybrid vehicles, modernization of transport fleet, new models, easier ownership terms such as low downpayments,” Mr. Ricafort said in a Viber message.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message that consumers are expecting interest rates to be cut soon “so they could be availing of more flexible financing terms.”

CAMPI’s Mr. Gutierrez said the industry expects higher sales of electric vehicles (EVs) this year as the government reduced tariffs on imported hybrid EVs and plug-in hybrid EVs to zero.

The National Economic and Development Authority earlier this month expanded the zero tariff policy for EVs to also include hybrid EVs, plug-in hybrid EVs, e-motorcycles, e-bicycles, nickel metal hydride accumulator batteries, e-tricycles and quadricycles. Last year, EVs made up 2.5% of total industry sales.

Mr. Gutierrez also said new vehicles are already compatible with the higher biofuel blend, which is set to be implemented by October.

The Department of Energy earlier directed oil companies to increase the coco biodiesel blend to 3% starting October.

Meanwhile, Toyota Motor Philippines Corp. remained the market leader, with sales of 67,580 units in the first four months of the year, up 13.9% from 59,328 units a year ago.

Mitsubishi Motors Philippines Corp. ranked second with a market share of 18.94%, after it posted a 19% increase in sales to 27,828 units.

In third spot was Ford Motor Company Phils. Inc., whose sales went up by 20.1% to 9,688 units.

Rounding out the top five were Nissan Philippines, Inc., which saw a 10.2% increase in sales to 9,375 units, while Suzuki Phils., Inc. posted a 12.5% rise in sales to 6,117 units.

CAMPI set a sales target of 468,300 units for 2024. Last year, the industry sold 429,807 units.

5.9% GDP growth seen in Q2

The Quezon City Hall building is lit with the Philippine flag, May 28, 2024. — PHILIPPINE STAR/MIGUEL DE GUZMAN

THE PHILIPPINE ECONOMY may grow faster in the second quarter due to improved state spending, putting it on track to hit the low end of the government’s full-year target, according to First Metro Investment Corp. (FMIC) and the University of Asia and the Pacific (UA&P).

“We expect Q2 GDP (gross domestic product) to speed up to 5.9% and end the full year at 6% with a mild upward bias,” FMIC and UA&P said in The Market Call report released on Wednesday.

If realized, the second-quarter GDP growth of 5.9% would be faster than 5.7% in the first quarter and the 4.3% print a year ago.

The Philippine Statistics Authority will release second-quarter GDP data on Aug. 8.

FMIC and UA&P’s full-year forecast of 6% falls at the low end of the government’s 6-7% GDP growth target.

“We retain our nuanced optimism with respect to an acceleration that should start in (the second) quarter continuing for the rest of 2024,” they said.

“We base this on hefty employment levels, fiscal space that should enable the government to speed up spending, especially infrastructures.”

After weaker-than-expected first-quarter GDP growth, National Economic and Development Authority Secretary Arsenio M. Balisacan earlier said that GDP growth must average 6.1% in the next three quarters to meet the government’s target range.

The FMIC and UA&P said they do not expect to see a repeat of the “disappointing” first-quarter growth.

“We think that GDP growth will accelerate for the rest of the year boosted by robust employment gains, stronger manufacturing and output gains, and improved agriculture with El Niño heat over,” they said.

FMIC and UA&P said a potential 25-basis-point (bp) rate cut by the Bangko Sentral ng Pilipinas (BSP) in the third quarter would also boost domestic demand.

The Monetary Board earlier this month kept its benchmark interest rate at a 17-year high 6.5% for the fifth straight meeting. However, the BSP signaled a possible rate cut by August.

Headline inflation would also likely quicken to the upper end of the central bank’s 2-4% target in July before slightly cooling to 3% in August amid easing rice and crude oil prices, FMIC and UA&P said.

“Hefty” employment levels and faster government spending, particularly on infrastructure, would also help drive GDP growth, FMIC and UA&P said.

However, the peso may stay under pressure in the July-to-September period amid high trade deficits and a stronger US dollar, they said.

The local unit closed at P58.42 a dollar on Wednesday, weakening by 45 centavos from its P57.97 finish on Tuesday, Bankers Association of the Philippines data showed.

This was the peso’s worst finish in over 18 months or since its P58.58-per-dollar close on Nov. 7, 2022.

“While April has not favored bond and equity risk taking, the recovery in May is likely due to the expected cut in BSP policy rates in August and to quarter one earnings much above expectations portends a more promising second half,” FMIC and UA&P said. — Beatriz Marie D. Cruz

DoF estimates P10B in foregone revenues from lower rice tariffs

A worker unloads a sack of rice at a warehouse in Tondo, Manila, May 7, 2024. — PHILIPPINE STAR/JOHN RYAN BALDEMOR

THE DEPARTMENT of Finance (DoF) proposal to further lower the tariffs on rice imports is estimated to bring down prices by as much as P5 per kilo, but also result in around P10 billion in foregone revenues.

“Our current estimate is less than P10 billion in (foregone) revenues if the (tariff cut) is implemented,” Finance Undersecretary and Chief Economist Domini S. Velasquez said in mixed English and Filipino at a forum on Wednesday.

Finance Secretary Ralph G. Recto earlier proposed to lower tariffs on rice imports to 17.5%, from the current 35%, to bring down prices of the staple.

Agriculture Assistant Secretary and Spokesperson Arnel V. de Mesa said the proposed tariff reduction could help bring down the price of imported rice by as much as P5 per kilo.

“If we lower the (tariff) to 17.5%, the reduction (in prices) will be big. Our initial estimates, we see about P4 to P5 reduction,” he said.

As of May 28, the average retail price of imported well-milled rice rose to P52-P54 per kilo from P40-P46 a year ago. Imported regular milled rice ranged from P49-P51 to P37-P38.

Meanwhile, local well-milled rice ranged from P48-P55 per kilo, higher than the P39-P46 band in the year-ago period. Regular milled rice averaged P45-P52 from P34-P42 previously.

Ms. Velasquez said the government generates some P30 billion in tariff revenues from the implementation of the Rice Tariffication Law (RTL).

However, she said the potential drop in revenues is not an issue if the tariff reduction will help bring down prices of rice.

“On the DoF’s part, we’re willing to forego that tariff loss just to make sure inflation is down,” she added.

Ms. Velasquez said that the discussions on the tariff proposal are still in the early stages.

“I think (the proposal) is 15% to 20%. Before, when rice prices increased, there were even requests of 10%,” she said.

In December, the government approved the extension of the reduced most favored nation tariff rates on several commodities, including rice, until Dec. 31, 2024. Tariff rates for imports of rice were kept at 35% for shipments within the minimum access volume quota and for those exceeding the quota.

As of April, the government has collected P16 billion from rice tariffs.

The Philippines imported 1.89 million metric tons (MT) of rice as of early May, data from the Bureau of Plant Industry showed.

Ms. Velasquez said global rice prices are easing but there are still pressures due to the lean season.

“We saw that prices in the market this May are already easing from April… We hope that lowering the tariff will help, especially during the lean season.”

Mr. Recto earlier said the retail price of rice could drop by as much as 20% by September. — Luisa Maria Jacinta C. Jocson

Central bank sees high probability inflation may breach target band

PHILIPPINE STAR/ MICHAEL VARCAS

UPSIDE RISKS to the inflation outlook are seen to persist this year, mainly coming from elevated transport, food, electricity and oil prices, the Bangko Sentral ng Pilipinas (BSP) said.

“The probability of inflation breaching the high end of the (2-4%) target band in 2024 and 2025 remains high, reflecting the possible impact of the various upside risks on the outlook,” it said in its latest monetary policy report.

The BSP said the latest probability distribution shows a “slightly higher likelihood of inflation settling within the target range for 2024” versus the previous round after the baseline forecast was lowered.

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

For 2025, the BSP’s baseline inflation forecast is at 3.3% while its risk-adjusted forecast is at 3.7%.

However, the probability of inflation falling below the 2-4% target band for this year and next year “remains low,” the central bank said.

The BSP said that the estimated impact of the upside risks was higher now due to upward adjustments in several indicators, such as transport charges and toll rates.

“Higher fares for jeepneys, trains, and taxis, as well as higher toll rates, pose upside risks to inflation,” the BSP said.

“An overall medium probability is assigned to the risk of higher transport charges based on the consumer price index (CPI) weights of the various transport items considered,” it added.

There are petitions to further increase the minimum fare for traditional jeepneys to P15 amid rising oil prices.

“The scenario assumes implementation by the second quarter of 2024 with medium probability, given the recent uptrend in oil prices,” the BSP said.

The central bank also cited petitions to hike the minimum fare for the Metro Rail Transit Line 3 (MRT-3) and proposals to increase the flag-down rate for taxi operators, as well as toll rate adjustments.

Meanwhile, the BSP said higher food costs due to supply constraints may also contribute to the uptick in inflation.

“Below-normal rainfall conditions could affect local rice and corn production, while African Swine Fever (ASF) and Avian Flu continue to threaten the production of pork and poultry,” it said.

“Meanwhile, reduced fishing activities from rising fuel costs, as well as restrictive imports, could result in insufficient fish supply. Moreover, the deficit in sugar and onion supplies are expected in the absence of sufficient import programs.”

The BSP expects elevated rice prices to persist until the third quarter of this year, while the other agricultural commodities are seen to remain elevated until the fourth quarter.

Meanwhile, the central bank warned that electricity rates could also increase this year.

In July last year, the Supreme Court nullified a 2014 order by the Energy Regulatory Commission (ERC) to regulate Wholesale Electricity Spot Market (WESM) prices from November to December 2013.

“The risk scenario assumes that an estimated P15.77 billion worth of power generation cost will be passed on to consumers with the adjustment spread equally over the next three years starting in June 2024,” it said.

It also said it sees a “high probability” for this risk as the ERC is slated to authorize the collection of this power generation cost.

The BSP said an escalation in geopolitical conflicts may drive global crude oil prices higher.

Meanwhile, the Financial Stability Coordination Council (FSCC) said it will continue to monitor volatilities that could impact the economy.

“The volatility in the price and supply of energy-related products can affect economic activity, while a high-for-long global interest rate situation will weigh on debt servicing in general,” FSCC Chairman and Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. said.

“These are issues that the FSCC will closely monitor and may address in due course, if warranted,” he added.

The FSCC issued the statement after holding its 39th Executive Committee meeting. The FSCC is an interagency council composed of officials of the BSP, Department of Finance, Securities and Exchange Commission, Insurance Commission and Philippine Deposit Insurance Corp.

The FSCC noted global indicators of market volatility have “remained low.”

“However, it also underscored the volatility in global oil prices. US inflation has come down but remains stubbornly high by the Fed’s own characterization,” it said.

“This suggests a high-for-long policy rate environment, which will likely affect the global economy. In addition, geopolitical risks have been protracted and, in recent cases, escalated.”

The FSCC said that economic growth in the Philippines remains robust.

“Latest data suggest that the full-year inflation is unlikely to breach the upper end of the band. These are reassuring indicators that allow the Philippines greater control over its macro-financial path forward,” it added. — L.M.J.C. Jocson

Regulator approves higher toll rates for NLEX starting June 4

PHILIPPINE STAR/MIGUEL DE GUZMAN

By Ashley Erika O. Jose, Reporter

THE Toll Regulatory Board (TRB) has approved higher toll rates for the North Luzon Expressway (NLEX) starting next week, its operator NLEX Corp. said on Wednesday.

In a statement, the Metro Pacific Tollways Corp. (MPTC) unit said the regulator had greenlit the second-tranche implementation of its consolidated toll hike petitions effective June 4.

Under the new toll fee matrix, motorists passing through the open system will pay an additional P5 for class 1 vehicles, P14 for class 2, and P17 for class 3 vehicles.

The open system covers Balintawak, Caloocan City to Marilao, Bulacan. The closed system is from Bocaue, Bulacan to Sta. Ines, Mabalacat City, Pampanga including Subic-Tipo.

For the closed system, motorists who pass through NLEX end to end between Metro Manila and Mabalacat City will pay P27 more for class 1 vehicles, P68 for class 2 and P81 for class 3 vehicles.

NLEX said the additional rates are in line with regulatory procedures.

The higher toll rates were part of the approved periodic adjustments of NLEX due in 2019 and 2021 that were divided into two tranches.

“The increase was deferred and divided into two tranches to help curb the inflationary strains and ease the impact on the users of the expressway,” the company said.

“TRB has authorized the implementation of the first tranche or 50% of the approved toll adjustments on May 25, 2023,” it added.

NLEX said it has implemented infrastructure and enhancement projects between 2018 and 2020 such expanding the San Fernando northbound exit and retrofitting the San Simon and Sta. Rita bridge in Pampanga.

It said it has invested in major expansion and enhancement projects that are vital to the country’s economic growth over the years, while easing the travel of the motoring public.

This year alone, NLEX opened the new F. Raymundo exit in Meycauayan, Bulacan province and widened the Meycauayan northbound exit ramp to decongest traffic.

The company is also on track to complete the third Candaba viaduct by November, it said.

MPTC is the tollway 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.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

PSE stock market accounts up by 11.3% last year

REUTERS

By Revin Mikhael D. Ochave, Reporter

THE PHILIPPINE Stock Exchange, Inc. (PSE) on Wednesday said stock market accounts rose by 11.3% to 1.91 million last year from 2022, showing higher investor participation.

The growth came from new accounts opened via the GStocks PH platform of electronic wallet GCash, the PSE said in a statement, citing data from its annual investor profile report.

GStocks PH helped increase the number of online accounts by 21.2% to 1.53 million in 2023, accounting for 80% of total stock market accounts, the local bourse said.

“Giving e-wallet holders direct access to the stock market is instrumental in our drive to increase retail investor participation in the market,” PSE President and Chief Executive Officer Ramon S. Monzon said in the statement.

But the number of accounts was muted after the cleanup of dormant accounts done by trading participants pursuant to the Anti-Money Laundering Act, the PSE said.

Retail investors accounted for 98.5% of total accounts, while institutional investors took up 1.5%. Local investors made up 98.5% of total accounts, and the rest were foreigners.

Retail accounts accounted for 99.9% of total online accounts, 98.8% of which were owned by local investors. Foreign online accounts accounted for the rest.

A partnership with the Department of Migrant Workers to hold financial literacy and stock investing sessions for overseas Filipino workers and their families is expected to boost the number of retail investors in the stock market, Mr. Monzon said.

The average value per online trade increased by 1.8% to P47,050.48. The average value per trade grew by 9.6% to P85,385.54.

Male investors took up 50.6% of the stock market accounts, female investors accounted for the rest. Female investors accounted for 51% of online accounts while male investors took up the rest.

Investors aged 30 to 44 had the biggest share in online and total accounts at 49% and 45.6%.

For online accounts, investors aged 18 to 29 took up 21.5%, followed by the 45-59 bracket at 18.4% and 60 and above at 10.9%.

For total accounts, investors aged 45 to 59 accounted for 20.2%, followed by people aged 18 to 29 at 19.5% and those aged 60 and above at 14.8%.

The PSE said investors earning less than P500,000 accounted for 76.7% of online investors and 70.9% of the total investors.

Investors earning between P500,000 to P1 million took up 11.9% of online accounts and 14.4% of the total accounts.

Those earning above P1 million made up 11.4% of online accounts and 14.7% of the total accounts.

Metro Manila-based investors took up 68% of online accounts and 68.2% of the total accounts.

“Aside from e-wallets serving as access points to stock investing, the PSE’s programs such as PSE EASy paved the way for investors based outside Metro Manila to invest in the stock market,” Mr. Monzon said.

“I hope this growth in non-Metro Manila investors will be sustained over the years so that the geographical aspect of financial inclusion is addressed,” he added.

Overseas accounts took up 1% of online accounts and 1.1% of the total accounts.

Among foreigners, the top three investors were Japanese, Chinese and American, the PSE said.

Mr. Monzon said investor education remains a priority of the PSE, citing the operator’s revamped PSE Academy website that can be accessed for investment literacy.

“Alongside encouraging retail investors to invest in the stock market, the PSE pursues initiatives beneficial to them,” the PSE chief said.

For one, it has proposed to the regulator to lower the minimum investment requirement. “We are also fine-tuning the PSE EQUIP platform to provide more comprehensive data access to retail investors.”

Yields on term deposits decline amid BSP’s policy easing hints

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

YIELDS on term deposits dropped on Wednesday amid signals that the Bangko Sentral ng Pilipinas (BSP) would soon begin its easing cycle.

The term deposit facility (TDF) of the BSP fetched bids amounting to P226.658 billion on Wednesday, well above the P210 billion on the auction block and the P217.774 billion for a P230-billion offer seen a week ago.

Broken down, tenders for the seven-day papers reached P110.47 billion, higher than the P100 billion auctioned off by the central bank but lower than the P113.383 billion in bids for the P110-billion offering seen the previous week.

Banks asked for yields ranging from 6.51% to 6.5412%, narrower than the 6.51% to 6.55% band seen a week ago. This caused the average rate of the one-week deposits to decrease by 0.16 basis point (bp) to 6.5336% from 6.5352% previously.

Meanwhile, bids for the 15-day term deposits amounted to P116.188 billion on Wednesday, higher than the P110-billion offering and as well as the P104.391 billion in tenders for a P120-billion offer seen on May 22.

Accepted rates for the two-week tenor were from 6.56% to 6.59%, also lower than the 6.56% to 6.6% margin seen a week ago. With this, the average rate for the term deposits slipped to 6.5761% from 6.5762% logged in the prior auction.

The two-week tenor was adjusted from the usual 14-day maturity as its settlement date was moved to June 13 due to the Independence Day holiday on June 12, the BSP said.

The BSP has not auctioned off 28-day term deposits for more than three years to give way to its weekly offerings of securities with the same tenor.

The term deposits and the 28-day bills are used by the central bank to mop up excess liquidity in the financial system and to better guide market rates.

Term deposit yields went down amid rate cut signals from Monetary Board policy makers, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

BSP Governor Eli M. Remolona, Jr. this month said the Monetary Board may kick off its easing cycle by the second semester, with a 25-bp cut possible as early as their Aug. 15 meeting and one or two rate cuts expected this year.

This would mean that they could ease ahead of the US Federal Reserve, which they expect to begin cutting rates by September, Mr. Remolona said.

The Monetary Board this month kept its policy rate at a 17-year high of 6.5% for a fifth straight meeting following cumulative hikes worth 450 bps from May 2022 to October 2023 to help bring down elevated inflation.

Finance Secretary and Monetary Board member Ralph G. Recto on Monday said the central bank could reduce the policy rate by as much as 150 bps in the next two years, adding that the BSP has room to cut starting next quarter.

A survey of private sector analysts in the BSP’s latest Monetary Policy Report also showed that the analysts expect the central bank to reduce the policy rate by 25 bps to 150 bps by the end of the year. — Luisa Maria Jacinta C. Jocson

Prime Infra’s $7.6-B projects get faster permit processing

BW FILE PHOTO

By Sheldeen Joy Talavera, Reporter

PRIME Infrastructure Capital, Inc. on Wednesday said its two pumped storage projects worth $7.6 billion (P444 billion) have received certificates from the government that qualify them for expedited permit processing.

In a statement, the company said its Wawa Pumped Storage Project in Rizal and Pakil Pumped Storage Project in Laguna have been certified as “energy projects of national significance.”

The certification is authorized by Executive Order No. 30, signed by former President Rodrigo R. Duterte in 2017. It expedited the issuance of regulatory and documentary requirements from local and national government agencies.

Former Energy Secretary Alfonso G. Cusi halted the issuance of the certification in 2020 to “evaluate the department’s effectiveness in securing regulatory requirements of energy projects.”

The Energy department last year lifted the suspension to “rationalize and streamline the process of permitting and licensing of energy projects and thereby ensure their timely implementation.”

Under an order issued in April, the agency must certify an energy project as nationally significant if it has a capital investment of at least P3.5 billion and has a “significant contribution to the country’s economic development.”

The Pakil Pumped Storage Power Project is under Ahunan Power, Inc., a wholly owned unit of Prime Infra.

It will have a storage capacity of 14,000 megawatt-hours (MWh) daily and a generating output capacity of 1,400 megawatts (MW).

“The project investment amounts to $5.03 billion and is expected to be among the largest pumped storage power plants in Asia once completed,” Prime Infra said.

The Wawa Pumped Storage Project is being developed by Olympia Violago Water Power, Inc., another Prime Infra unit.

The project has an investment worth $2.57 billion and will have a storage capacity of 6,000 MWh per day and a generating unit capacity of 600 MW.

Both projects, which received “green lane” endorsement from the Department of Trade and Industry and the Board of Investments last month, will start operating by 2030.

“These are critical projects, essential to enable the energy transition and to enhance grid security through flexible energy generation,” Prime Infra President and Chief Executive Officer Guillaume Lucci said in a statement.

Vistamalls, Inc. to hold annual meeting of stockholders online on June 24

 

 


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