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Flu vaccination provides many benefits

PHILIPPINE STAR/EDD GUMBAN

Seasonal influenza or the flu is one of the most common illnesses in the Philippines. The flu season in the country is from June to November, coinciding with the rainy season.

The Department of Health (DoH) said that 9,491 flu-like cases nationwide were recorded from July 28 to Aug. 10, 55% higher compared to 6,124 cases reported in the previous week. All regions except the Bangsamoro in southern Philippines showed an increase in flu-like cases during this four-week period. Annual seasonal influenza epidemics have a substantial economic impact through reduced workforce productivity and increased pressure on healthcare services.

Seasonal influenza is an acute respiratory infection caused by influenza viruses. There are four types of influenza viruses, types A, B, C, and D. Influenza A and B viruses circulate and cause seasonal epidemics, according to the World Health Organization (WHO).

Symptoms of influenza usually begin around two days after being infected by someone who has the virus. These include sudden onset of fever, cough (usually dry and can be severe and last two weeks or more), headache, muscle and joint pain, severe malaise (feeling unwell), a sore throat, and a runny nose.

Seasonal influenza spreads easily, with rapid transmission in crowded areas including schools and nursing homes. When an infected person coughs or sneezes, droplets containing viruses (infectious droplets) are dispersed into the air and can infect persons in close proximity. The virus can also be spread by hands contaminated with influenza viruses. To prevent transmission, people should cover their mouth and nose with a tissue when coughing and wash their hands regularly.

While most people recover from fever and other symptoms within a week without requiring medical attention, influenza can cause severe illness or death, especially in people at high risk. Hospitalization and death due to influenza occur mainly among high-risk groups, warns the WHO.

High-risk groups include pregnant women, children under five years of age, older people, individuals with chronic medical conditions (such as chronic cardiac, pulmonary, renal, metabolic, neurodevelopmental, liver or hematologic diseases) and individuals with immunosuppressive conditions/treatments (such as HIV, those receiving chemotherapy or steroids, or who have a malignancy). Healthcare workers are at high risk of acquiring influenza virus infections due to increased exposure to the patients, and of further spreading it particularly to vulnerable individuals.

Influenza can worsen symptoms of other chronic diseases. Severe influenza can lead to pneumonia and sepsis (a serious condition caused by the body’s severe reaction to an infection). The WHO strongly advises people with other medical issues or who have severe flu symptoms to seek medical care.

Vaccination is the best way to prevent influenza, the WHO stresses. Safe and effective flu vaccines have been used for more than 60 years. Immunity from vaccination wanes over time; as such, the WHO recommends an annual flu vaccination. Moreover, flu viruses are constantly changing. This is why flu vaccines are updated routinely, with new vaccines developed that contain influenza viruses that match circulating strains.

The flu vaccine oftentimes makes the illness less severe and reduces the chance of complications and death, the WHO explains. Vaccination is especially important for people at high risk of influenza complications and their carers. The WHO recommends annual flu vaccination for pregnant women, children aged six months to five years, people over the age of 65, people with chronic medical conditions, and health workers.

Flu vaccination provides numerous benefits, according to the US Centers for Disease Control and Prevention (CDC). The flu vaccine prevents millions of illnesses and flu-related doctor’s visits each year. During seasons when flu vaccine viruses are similar to the circulating flu viruses, the flu vaccine has been shown to reduce the risk of having to go to the doctor with flu by 40-60%.

A 2021 study showed that among adults hospitalized with flu, vaccinated patients had a 26% lower risk of intensive care unit (ICU) admission and a 31% lower risk of death from flu compared with those who were unvaccinated. A 2018 study in New Zealand showed that among adults hospitalized with flu, vaccinated patients were 59% less likely to be admitted to the ICU than those who had not been vaccinated. Among adults in the ICU with flu, vaccinated patients spent on average four fewer days in the hospital than those who were not vaccinated.

A 2018 study showed that from 2012 to 2015, flu vaccination among adults reduced the risk of being admitted to an ICU with flu by 82%. A 2017 systematic review found that during 2010 to 2011 through 2014 to 2015, flu vaccines reduced the risk of flu-associated hospitalization among older adults by about 40% on average.

Flu vaccination can also be life-saving for children. It can reduce children’s risk of severe life-threatening influenza by 75%, flu-related hospitalization by 41%, and flu-related emergency department visits by half among children aged six months to 17 years. A 2014 study showed that flu vaccination reduced children’s risk of flu-related pediatric intensive care unit (PICU) admission by 74% during flu seasons from 2010 to 2012.

Flu vaccination is important for people with certain chronic health conditions, including heart disease, chronic obstructive pulmonary disease (COPD), and diabetes, as it reduces disease severity and the risk of hospitalization. Flu vaccination during pregnancy also helps protect pregnant people from flu during and after pregnancy and helps protect their infants from flu in their first few months of life.

Last but not the least, getting flu shots may also protect the people around them, including those who are more vulnerable and at high risk.

 

Teodoro B. Padilla is the executive director of the Pharmaceutical and Healthcare Association of the Philippines which represents the biopharmaceutical medicines and vaccines industry in the country. Its members are in the forefront of research and development efforts for COVID-19 and other diseases that affect Filipinos.

Agriculture ‘most problematic’ area in India-EU free trade talks, German economy minister says

STOCK PHOTO | Image by Jeevan Singla from Pixabay

NEW DELHI — Agriculture is the “most problematic” area in talks to secure a free trade deal between India and the European Union (EU), German Economy Minister Robert Habeck said on Thursday, suggesting that it would be better to focus on the industrial sector first.

Mr. Habeck is in India for a regional business conference and is part of a high-level delegation that aims to build better trade and business relations between two of the world’s biggest economies.

Agriculture is a problematic area as there is a huge variation in the number of people working in the farm sector in India and Germany, he told reporters, adding that it was 2% of the population in Germany compared to about 60% in India.

“So you can’t compare the two agricultural systems. If you were to open the markets completely… the disruption to the Indian market will be tremendous,” Mr. Habeck said.

It would be faster, smoother, and practical to focus on the industrial sector instead, he said.

Although this is “not in line” with what the EU normally does, a “shortcut” may be the way forward as clubbing agriculture, services, and industry was making it difficult, Mr. Habeck added.

India and the EU agreed in 2022 to relaunch talks on a free trade agreement, initially aiming to complete talks by the end of 2023, but have failed to make significant progress on a deal, with India blaming “irrational” standards set by the EU as one of the reasons.

The visit of the delegation comes at a delicate time for Germany, whose export-oriented economy faces a second year of contraction and worries over a trade dispute between the EU and China that could rebound on German companies.

Chancellor Olaf Scholz, who is traveling with most of his cabinet, will hold talks with Indian Prime Minister Narendra Modi on Friday before presiding over the seventh round of Indian-German government consultations.

During his last visit to India in Feb. 2023, Mr. Scholz said that he and Mr. Modi were committed to sealing a free trade deal between India and the EU. — Reuters

Metro Pacific, SM Investments cited in sustainability awards for ESG principles

METRO PACIFIC Investments Corp. and SM Investments Corp. were among the companies cited during the inaugural Triple P Sustainability Awards 2024 in Pasay City on Friday.

The awards recognized sustainability efforts across various industries, the International Association of Business Communicators (IABC) Philippines said in an e-mailed statement at the weekend. IABC Philippines, in collaboration with Deloitte and the Makati Business Club, hosted the first Triple P Awards.

“This event reflects the evolving role of business communications as a driver of sustainable change,” IABC Philippines President Belle Tiongco said. “It’s inspiring to witness the commitment of these organizations to responsible business practices, proving that progress is not only possible but imperative in today’s world.”

MPIC bagged the best environmental, social and governance (ESG) program award for its Gabay Kalikasan Program, as well as the Triple P award for its commitment to net-zero emissions by 2050, proactive climate risk management and efforts to reduce emissions within its value chain.

The conglomerate stood out for encouraging a people-centered culture, ensuring fair wages, career development, and healthcare access for all employees, while investing 75% of its portfolio in sustainable ventures.

Meanwhile, SM was cited for its leadership in social sustainability among holding companies, while Light Rail Manila Corp. was awarded for promoting social responsibility within the mass transportation industry.

Mondelez International Philippines bagged the excellence in environmental sustainability for the food manufacturing sector, while Maynilad Water Services, Inc. showed exemplary performance in both environmental and social sustainability within water utilities.

Manila Electric Co. bagged the excellence in environmental and social sustainability for energy distribution.

“Through these awards, we honored companies that truly embodied the spirit of sustainability and set new standards within their respective industries,” IABC ESG Committee Chairperson Melody M. del Rosario said. “These winners exemplify the power of strategic sustainability in not just enhancing reputation but creating real, measurable impact in society, the environment and for people.”

IABC Philippines represents professionals in the field of business communications in the country.

MPIC is one of the 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 share in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

Revuelto ushers Lamborghini into electrified era with 1,015cv of power

The Lamborghini Revuelto can reach 100kph from a standstill in 2.5 seconds. — PHOTO FROM LAMBORGHINI

NAMED AFTER an 1880s fighting bull, the Revuelto is the fitting heir to the Lamborghini Aventador which completed a historic 11-year run atop the hallowed Lamborghini lineup as its most potent sports car since it was launched in 2011.

While technically not the first hybrid from the Sant’Agata Bolognese-headquartered super car maker (that honor belongs to the Sián FKP 37, rolled out in 2019), the Revuelto is the most powerful ever — developing an incredible 1,015cv of power (one cv equals 0.985hp). It is the brand’s first super sports V12 hybrid plug-in HPEV (or high-performance electrified vehicle), and the Revuelto’s recent arrival in the Philippines represents the dawn of a new era in electrification here.

The Revuelto features a “perfect balance between enhanced driving emotions and reducing emissions,” a tenet now available to local Lamborghini customers and fans. In terms of performance, the model is a true top-tier Lambo as it rockets from a standstill to 100kph in a scant 2.5 seconds, and reaches 200kph in seven ticks — on the way to a top speed that is said to exceed 350kph.

Making this possible is a powertrain comprised of a 6.5-liter V12 engine supplemented by three electric motors — helped along with a mass-conscious design that leads to a marque-best weight-to-power ratio of 1.75kg/cv. This cements the Revuelto’s leadership in the super sports car segment. This is made possible in part with the hefty use of carbon fiber — produced via artisan craftmanship at the factory. The material is deployed not only in the monofuselage and frame but also “in all elements of the bodywork,” along with the doors and bumpers.

The mill’s massive potential is realized through the Revuelto’s eight-speed double-clutch transmission — the first time it appears on a 12-cylinder model from the brand. What it brings, said Lamborghini, is seamless gear shifting while enhancing overall driving dynamics. The Revuelto also boasts electric-only driving for even more versatility — as well as emissions-free driving.

A lot of high technology is put to work as well, such as electric torque vectoring and a sophisticated four-wheel drive system for maximum agility and stability whether on track or the road. Significantly, versus the Aventador Ultimae, the Revuelto boasts a 30% reduction in CO2 emissions.

The Revuelto design, including the hexagonal elements that occur throughout the vehicle, draws on the rich history of the iconic brand, combining it with “modern aesthetics,” and resulting in a familiar wedge shape that lies close to the ground, and showcasing aerospace-inspired features. In the cabin are multiple digital displays, underpinning a so-called “Feel Like a Pilot” concept through “simple volumes, symmetry, and a driver-focused approach.”

It draws inspiration from the V12 models that preceded it — from the 1971 Countach’s proportions and scissor doors, to the Diablo’s presence and floating blade on the rear fender, and the muscularity and inclined front of the Murciélago.

A “double-bubble” roof provides space vertically, and a compact central tunnel gives more lateral room. Lamborghini said the trunk can fit two cabin-size rollers, while the rear bench can store up to two soft bags. Buyers can choose from over 400 exterior colors and a range of luxurious materials available to personalize the driving experience.

For more information about the Revuelto, contact (+632) 8553-9693.

Style (10/28/24)

Malbon teases entry to Philippines

MALBON, the lifestyle brand that fuses fashion with golf, will be opening their largest store worldwide right in the Philippines. It will be in the heart of BGC at the Shangri-La, facing 5th Avenue. Founded by Stephen and Erica Malbon, the brand was established in 2017 in Los Angeles and has quickly become a Hollywood favorite (Justin Bieber is a regular). They have biweekly collection drops and a diverse portfolio of collaborations ranging from Footjoy to Coca Cola to Jimmy Choo to Wu Tang Clan. Malbon has a Buckets Club, a community for golfers, athletes, artists, and creatives, offering members unique benefits like early access to product drops, invitations to special store events, and participation in golf events around the country. Malbon will be brought to the country by TKG Lifestyle, a local group behind the franchises for Gentle Monster and % Arabica, and the fitness facility Pretty Huge. The Malbon store is slated to open next year.

Rustan’s celebrates Christmas

THIS YEAR’S window display at Rustan’s Makati depicts Santa’s modern journey. Instead of a sleigh, Santa is seen driving a vintage car loaded with gifts, while Mrs. Claus is seen zipping through town on a Vespa. As for their Christmas promos, Rustan’s presents an array of these available from Oct. 5 to Dec. 31. Enjoy up to 60% off at Rustan’s Beauty, featuring brands like K-Palette, Phyto, Babyliss, and bath and body brands. In Women’s Fashion, selections ranging from apparel, accessories, shoes, and bags from Natori, Swarovski, and Nava, among others, will have discounts of up to 30% off. For men, Banana Republic offers 45% off for FSP members and 35% off for non-FSP members on regular-priced men’s items. Get 10% off on all regular items from Tumi and receive a complimentary 19D Aluminum Card with a minimum purchase of P40,000. The Kids section features playful clothing and accessories from Mommy Hugs, Yumbox, Cuddlebug, and more, offering up to 25% off. Dazzle this holiday season with pieces from Montblanc, Tiffany & Co., Swarovski, and Chow Sang Sang, all available at up to 20% off. The Silver Vault features exclusive items at up to 25% off. The Home Collection, with brands like Royal Albert, Vista Alegre, Rustan’s Our Very Own, Tefal, Beka, Breville, and more, has offers of up to 40% off. Select Rustan’s brands will extend gift-with-purchase offers during the promo period. They’re also releasing a new giveaway, the Rustan’s Christmas Bear, tied to a cause. FSP and Beauty Addict members who make a minimum purchase of P20,000 between Nov. 1 to 30 will receive a bear. A portion of the proceeds collected will benefit the Servants of Charity, an organization dear to the late Rustan’s head Zenaida R. Tantoco, dedicated to caring for children with mental disabilities.

SM Stationery launches stand-alone concept store

SUPPLIES STATION, INC., the company behind homegrown brands SM Stationery and SM Gadgets, opens its first stand-alone concept store in Quezon City. The new store, called Station by SM, opened its doors to the public on Oct. 18. It offers customers school and office supplies, art materials, and novelty items. “We are excited to introduce our first stand-alone concept store to our customers,” said Jessalyn Uy, SVP and Business Unit Head of Supplies Station, Inc., in a statement. “This new store represents our dedication to providing a fresh shopping experience for our customers and showcasing our extensive range of products in a whole new way. From Gen Zs to young moms and to corporate professionals, Station by SM is truly a one-stop destination where fun meets function.” The store carries stationery brands like Mongol, Pilot, Crayola, Sharpie, Faber Castell, and Stabilo. Customers can also find brands such as Jisulife, Aquaflask, and Smiggle. Station by SM is open daily and is located at the Lower Ground Level, Central Walk of SM Fairview.

Yields on government debt end higher

By Abigail Marie P. Yraola, Deputy Research Head

YIELDS on government securities (GS) traded in the secondary market rose across the board last week as the market remained cautious amid monetary easing expectations here and in the United States and uncertainty ahead of the upcoming US presidential elections.

GS yields, which move opposite to prices, rose by an average of 6.90 basis points (bps) week on week, according to the PHP Bloomberg Valuation Service Reference Rates as of Oct. 25 published on the Philippine Dealing System’s website.

Rates at the short end of the curve rose, with the 91-, 182-, and 364-day Treasury bills (T-bills) climbing by 4.8 bps (to 5.1979%), 21.77 bps (5.8013%), and 3.66 bps (5.7292%) week on week, respectively.

At the belly, yields likewise went up across all tenors. The two-, three-, four-, five-, and seven-year Treasury bonds (T-bond) saw their rates increase by 8 bps (to 5.5868%), 7.32 bps (5.6348%), 6.67 bps (5.6785%), 6.61 bps (5.7156%), and 7.22 bps (5.7747%), respectively.

Tenors at the long end also saw their rates climb. The 10-, 20-, and 25-year T-bonds rose by 9.01 bps, 0.45 bp and 0.37 bp to fetch 5.8279%, 5.9082%, and 5.9071%, respectively.

GS volume traded was at P39.31 billion on Friday, higher than the P25.76 billion recorded a week earlier.

“Bond yields broadly moved higher during the week as traders remained cautious due to uncertainty concerning the future US monetary and fiscal policy. This was mainly due to lack of clear lead on the US presidential race polling,” a bond trader said in an e-mail.

The trader said market expectations have shifted towards more gradual Fed rate cuts after various officials discussed the implications of the 50-bps rate cut made in September.

“On the local front, demand for Treasury bills (T-bills) remained consistently strong as investors maximize the higher yields for short-term issuances in anticipation of future BSP (Bangko Sentral ng Pilipinas) policy rate cuts,” the trader added.

The Bureau of the Treasury last week raised P20 billion as planned from the T-bills it auctioned off, with total bids amounting to P55.069 billion, higher than the P51.735 billion a week earlier.

ATRAM Trust Corp. Vice-President and Head of Fixed Income Strategies Lodevico M. Ulpo, Jr. said that the GS yields rose following the T-bill auction results and by volatility in US Treasuries amid strong economic data and mixed signals from Federal Reserve officials on their policy easing path.

“Late in the week, stabilizing global rates and an anticipated P300-billion liquidity boost from the BSP’s RRR (reserve requirement ratio) cut led to improved liquidity, nudging local yields slightly lower,” Mr. Ulpo said.

Effective Friday, the BSP reduced the RRR for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 250 bps to 7% from 9.5%.

It also cut the RRR for digital banks by 200 bps to 4%, while the ratio for thrift lenders was brought down by 100 bps to 1%. Rural and cooperative banks’ reserve requirement was slashed by 100 bps to 0%.

Republican former President Donald Trump and Democratic Vice President Kamala Harris are polling neck-and-neck in crucial swing states ahead of the Nov. 5 election. Investors are anxious about a contested result roiling world markets and unleashing fresh geopolitical uncertainty, Reuters reported.

Mr. Trump is neck and neck with Ms. Harris in the polls. Yet investors are taking their cues from betting markets, where the odds have shifted in Mr. Trump’s favor.

The dollar has rallied more than 3% so far in October as bond yields have climbed towards three-month highs, partly because markets are preparing for potentially higher US tariffs flagged by Mr. Trump if he wins that could push up inflation and force the Federal Reserve to keep rates higher.

Traders are pricing in near-95% odds of a 25-bp cut at the Fed’s November meeting, according to the CME Group’s FedWatch Tool. The yield on benchmark US 10-year notes rose 3.8 bps to 4.24%.

Four Fed policy makers on Monday expressed support for further interest rate cuts, but appeared to differ on how fast or far they believe any cuts should go.

Three of them, citing the strength of the economy and an uncertain outlook, expressed a preference for going slow, using words like “modest” and “gradual” to describe their views on the right pace for rate cuts.

The fourth, San Francisco Fed President Mary Daly, said she feels Fed policy is “very tight” and does not believe that a strong economy, as long as inflation continues to fall, should keep the central bank from continuing to reduce rates.

The remarks provide a small taste of what’s expected to be a broad but closed-door debate of the appropriate path for policy at the Fed’s upcoming policy meeting, on Nov. 6-7.

Meanwhile, the BSP has so far cut borrowing costs by a total of 50 bps this year since it began its easing cycle in August, with its policy rate currently at 6%.

BSP Governor Eli M. Remolona, Jr. has signaled another 25-bp cut at the Monetary Board’s last policy review for the year on Dec. 19.

For this week, GS yields may continue to climb as the market remains cautious, both analysts said.

“Investors are expected to remain cautious, balancing duration risk against near-term volatility as monetary policy expectations evolve. In the near term, many may stay on the sidelines, awaiting clearer signals from global policy makers and developments in US politics,” Mr. Ulpo said.

“Yields might continue fetching higher amid domestic inflationary concerns emanating from the recent peso weakening and potential supply disruptions from the impact of Typhoon Kristine,” the bond trader added.

Yields could remain range-bound in the coming weeks, supported by improved liquidity from the BSP’s RRR cut, dovish signals from the BSP, as well as lower bond supply due to the reduced number of Treasury bond auctions this quarter, Mr. Ulpo said.

“However, volatility in US Treasuries will likely apply upward pressure, particularly on the medium to long end of the curve,” he said.

“In the longer term, yields could gradually decline as investors anticipate easing amid a slowdown and limited government bond issuance. Further dovish BSP signals or global market stability may add downward momentum on yields, though US Treasuries and inflation data will continue to be key short-term factors to balance direction,” Mr. Ulpo added. — with Reuters

Philippines improves in property rights ranking

(But still one of the laggards in the region)

The Philippines went up a notch to 84th out of 125 countries in the 2024 edition of the International Property Rights Index (IPRI) by think tank Property Rights Alliance. It scored 4.422 (out of 10), below the 5.183 global average. The index presents the state of property rights in countries using three components: legal and political environment, physical property rights, and intellectual property rights.

Philippines improves in property rights ranking

How PSEi member stocks performed — October 25, 2024

Here’s a quick glance at how PSEi stocks fared on Friday, October 25, 2024.

Firms’ results, window dressing may lift stocks

BW FILE PHOTO

CORPORATE RESULTS, month-end window dressing and market bets ahead of the US presidential vote may push up Philippine stocks this week.

On Friday, the benchmark Philippine Stock Exchange index (PSEi) climbed by 0.41% or 30.44 points to 7,314.23, while the broader all shares index went up by 0.24% or 9.88 points to 4,017.27.

Week on week, however, the PSEi dropped by 1.37% or 101.50 points from its 7,415.73 close on Oct. 18.

“Local equities pulled back as Tropical Storm Kristine wreaked havoc, washing away built-up optimism early this month,” online brokerage firm 2TradeAsia.com said in a market note.

“The local market is having a hard time getting past the 7,400-7,500 resistance range as the weakening of the peso together with offshore uncertainties weigh on sentiment. Consequently, the market is being hindered from continuing its bull run,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

On Friday, the peso closed at P58.32 per dollar, dropping by 44 centavos from its P57.88 finish on Tuesday, Bankers Association of the Philippines data showed. This was its weakest finish in almost three months or since it ended at P58.333 per dollar on Aug. 1.

Week on week, the local unit fell by 80.90 centavos from its P57.511 finish on Oct. 18.

For this week, Philippine shares may rise on bargain hunting as prices remain attractive, Mr. Tantiangco said.

“Investors are expected to look forward to the corporate sector’s third-quarter reports. Upbeat corporate results are seen as one of the possible catalysts that could drive the market higher,” he said.

“The dovish monetary policy outlook of the Bangko Sentral ng Pilipinas (BSP) is still expected to give the market support… Investors are also expected to monitor the movement of the local currency.”

Mr. Tantiangco put the market’s support at 7,150.

“Absent other catalysts, [this] week’s month-end window dressing period might be an opening for traders to position and bet ahead of the US polls, especially given the timing of the earlier RRR (reserve requirement ratio) cut implementation that should further inject available cash flow for trading,” 2TradeAsia.com said.

2TradeAsia.com put the PSEi’s immediate support at 7,000 and resistance at 7,500.

Effective Friday, the BSP reduced the RRR for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 250 basis points (bps) to 7% from 9.5%.

It also cut the RRR for digital banks by 200 bps to 4%, while the ratio for thrift lenders was brought down by 100 bps to 1%. Rural and cooperative banks’ reserve requirement was slashed by 100 bps to 0%.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort placed the PSEi’s immediate support at 7,050-7,260 and resistance at 7,600-7,800. — R.M.D. Ochave

Peso may stay at P58 level ahead of US election

THE PESO could stay at the P58-per-dollar level this week as the market stays cautious ahead of the US presidential elections on Nov. 5.

The local unit closed at P58.32 per dollar on Friday, sinking by 44 centavos from its P57.88 finish on Tuesday, Bankers Association of the Philippines data showed.

This was the peso’s worst close in almost three months or since it ended at P58.333 per dollar on Aug. 1.

The foreign exchange (forex) market was closed on Oct. 23-24 due to the suspension of work in government offices amid the typhoon.

Week on week, the peso plummeted by 80.9 centavos from its P57.511 finish on Oct. 18.

The peso dropped against the dollar on Friday as players filled their forex requirements following the two-day trading halt, a trader said by phone.

The local unit declined as the dollar was also generally stronger last week due to market caution ahead of the US presidential elections, the trader added.

The dollar slipped for a second straight session on Friday as a recent ascent lost steam, but the greenback was still on track for a fourth straight week of gains after data kept interest rate expectations for the Federal Reserve in check, Reuters reported.

The dollar index, which measures the greenback against a basket of currencies, shed 0.02% to 104.03, with the euro up 0.02% at $1.083.

The Commerce department said non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, jumped 0.5% last month after an unrevised 0.3% gain in August and above the 0.1% rise estimated by economists polled by Reuters.

A separate report by the University of Michigan showed October consumer sentiment rose to 70.5 from 70.1, topping the 69.0 estimate, while the one-year inflation outlook fell to 2.7% from the preliminary reading of 2.9% but in line with September’s final result.

The dollar was poised for its fourth straight week of gains as a run of positive economic data has quieted expectations about the size and speed of the US Federal Reserve’s rate cuts, which has also lifted US Treasury yields.

The dollar has also benefited from a rise in market expectations for a victory next month by Republican candidate and former US President Donald J. Trump, which would likely bring about inflationary policies such as tariffs.

The peso weakened as banks’ lower reserve requirement ratios (RRR) took effect on Friday (Oct. 25), Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The Bangko Sentral ng Pilipinas (BSP) on Friday reduced the RRR for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 250 basis points (bps) to 7%.

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

For this week, the peso could continue to weaken as the market monitors the US presidential race, the trader said.

Mr. Trump and Democratic Vice-President Kamala Harris are polling neck-and-neck in crucial swing states ahead of the Nov. 5 election, Reuters reported. Investors are taking their cues from betting markets, where the odds have shifted in Mr. Trump’s favor.

Mr. Ricafort added that the peso could remain at the P58 level as investors await more policy signals from the BSP.

The Monetary Board this month cut benchmark interest rates by 25 bps for a second straight meeting, bringing its policy rate to 6%.

The BSP in August kicked off its easing cycle with a 25-bp reduction, marking its first rate cut in nearly four years.

BSP Governor Eli M. Remolona, Jr. signaled the possibility of another 25-bp cut at the Monetary Board’s last meeting for the year on Dec. 19, which would bring the policy rate to 5.75% by end-2024.

The trader sees the peso moving between P57.80 and P58.50 per dollar this week, while Mr. Ricafort expects it to range from P58 to P58.50. — A.M.C. Sy with Reuters

PHL pension system seen facing sustainability, governance issues

BW FILE PHOTO

By Aaron Michael C. Sy, Reporter

THE pension system is facing sustainability issues as well as questions about its ability to resist political interference, analysts said.

“The Social Security System (SSS) pension payout is notoriously low. It may be good for some food, but certainly not enough for utility bills and maintenance medicine. There are doubts about its sustainability given its current reserve deficit. It also suffers from integrity issues given the history of government trying to raid it for development needs,” University of Los Baños Economics Senior Lecturer Enrico P. Villanueva said in a social media message.

The Government Service Insurance System (GSIS) likewise has a “massive” reserve deficit, Mr. Villanueva noted.

“The lack of (correspondence) between contributions and defined benefits means there is doubt about its sustainability,” he added.

Mr. Villanueva noted the government’s initial plan to use the pension funds to provide seed capital for the Maharlika Investment Corp. (MIC).

“While the government has not reneged on pension payments, there is distrust created by attempts to transfer funds away from them, as in the case of Maharlika,” he said.

The MIC eventually received its initial capital from the Land Bank of the Philippines (P50 billion), Development Bank of the Philippines (P25 billion) and the National Government (P50 billion).

State pension funds are also unable to provide formal social security benefits for the majority of the  population due to their informal nature, Filomeno S. Sta. Ana III, coordinator of Action for Economic Reforms, said via Facebook Messenger.

He noted the disparity in pension benefits between public and private sector employees, and within the public sector, between civilian and uniformed personnel.

“Within the public sector, some have heftier benefits than others (e.g., members of judiciary and military and uniformed personnel),” he said.

Monetary Board Member Romeo L. Bernardo said via Viber cited a study by the World Bank and the Department of Finance which recommended harmonizing the benefit formulas of military and civilian pensions.

“Increased contributions to a reformed Pag-IBIG might be a good means for providing a larger share of military pensions rather than creating a new specialized fund for the military,” the study concluded.

“There was an initial attempt to reform the military and uniformed personnel pension system to prevent what former Finance Secretary  Benjamin E. Diokno called an overgenerous, undisciplined pension system that can trigger a “fiscal collapse,” Mr. Sta. Ana added.

A study by Mercer CFA Institute likewise suggested improving the governance requirements for the private pension system.

According to the institute’s Global Pension Index 2024, the Philippines had the third-worst pension system in the world, scoring 45.8 out of 100 on its index.

The study also recommended increasing the minimum level of support for poorer aged individuals, aligning the benefit to cost-of-living indices, improving vesting requirements in private-sector plans, and introducing non-cash-out options for retirement plan proceeds so they are preserved for retirement purposes.

The Philippines scored 41.7 out of 100 on the adequacy sub-index, 63.4 out of 100 on the sustainability sub-index, and 27.7 on the integrity sub-index.

Clarity on mining fiscal regime to benefit ore processing sector

FREEPIK

By Justine Irish D. Tabile, Reporter

CLARITY on the provisions of the mining fiscal regime is expected to attract more investment in mineral processing, the Chamber of Mines of the Philippines (CoMP) said.

On the sidelines of the 13th Arangkada Philippines Forum, CoMP Chairman Michael T. Toledo said investors have cited unstable regulation and the uncertain fiscal regime as behind their reluctance to invest in the Philippines.

“The first thing that they say always will be ‘The problem with mining is that your laws always change and then your fiscal regime is unclear and there seems to be no transparency or flip-flopping of policies’ … So those are the reasons why they have been very hesitant,” Mr. Toledo said.

However, he said this will be addressed once the government signs into law the proposed fiscal regime for the mining industry.

At the same event, Senate President Francis G. Escudero said Congress is hoping to pass the measure in the remaining 41 session days until June 30, 2025.

“This was passed in the Lower House months before, so now it’s pending in the Senate. And we are hoping that it will be passed, and it will be the first time that we will have in place a mining fiscal regime bill that will actually govern the industry,” Mr. Toledo said.

“With a law clearly defining and governing the rights of all those into the industry, government, the mining operators, and the other related government agencies and other stakeholders, it will attract more investment,” he added.

He said that the passage of the bill will help ensure transparency and predictability, which will allow investors to make long-term plans.

The House of Representatives approved its version of the measure in September last year, while the bill is awaiting second reading at the Senate.

Senate Bill No. 2826 aims to establish a five-tier margin-based royalty rate range of 1-5% and a five-tier windfall profit tax range of 1-10%.

Meanwhile, House Bill No. 8937 aims to charge large-scale miners 4% of their gross output and to set up a margin-based royalty range of 1.5–5% with eight tiers and a 1–10% windfall profit tax with 10 tiers.

According to Mr. Toledo, the Senate’s version of the bill incorporates input from the CoMP, the Department of Finance, the Anti-Red Tape Authority, the Department of Trade and Industry, and other stakeholders.

“The technical working group hearings were very exhaustive … because we really want this bill to be passed because if not, it might be hard to get another bill on mining,” he said.

“This is only what businessmen from overseas are waiting for before they invest billions of dollars here so they can help the industry … Mining can do many things as long as it is responsible and sustainable,” he added.

Aside from pushing for the passage of a mining fiscal regime, Mr. Toledo said that the industry is also seeking local ordinances to not go against the laws passed by the Congress.

“Why are we allowing a local ordinance issued by a local government, for example, to ban mining or ban a certain methodology of mining, like open-pit mining, when there is a law that states that it is allowed? Isn’t that a violation of the law?” he said.

“If you are a local government official, you are supposed to execute the laws that were passed by Congress, who is tasked under the Constitution to pass laws and to legislate, and the Supreme Court and the courts to interpret the law,” he added.

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