MANILA – The Philippine central bank is only in the foreign exchange market to control speculation and its interventions have been “very modest,” its governor said on Wednesday.
Bangko Sentral ng Pilipinas Governor Eli Remolona also told reporters the central bank was looking to cut interest rates by 25 basis points in the third quarter and another 25 basis points in the fourth quarter. –– Reuters
SINGAPORE – Half of the world’s mangrove ecosystems are at risk of collapse as a result of human activity, rising sea levels and extreme weather, according to the latest survey by an international conservation group.
Unless action is taken, a quarter of the world’s total mangrove areas could be completely submerged within 50 years, with critically endangered ecosystems in India, Sri Lanka and the Maldives expected to bear the brunt, said the International Union for the Conservation of Nature (IUCN) in an assessment published on Wednesday.
“This global assessment has found that 50% of the mangroves worldwide are at risk of collapse, and that is much more than what we expected,” said Marcos Valderrabano, who runs the IUCN’s “Red List” assessing ecosystem threats.
Mangrove forests cover around 15% of the world’s coastlines and play a vital ecological and economic role, filtering water and providing breeding grounds for fish and other marine life.
As well as storing an estimated 11 billion tons of carbon, mangroves also serve as an important buffer that protects coastal communities against storm surges and floods.
Singapore, which lost almost all of its coastal mangrove habitats as a result of extensive land reclamation, is currently planning a restoration program that will help defend its low-lying coastline against rising sea levels.
Switzerland-based IUCN assembled more than 250 experts to conduct the survey, and found that climate change was already affecting the spatial distribution of mangrove forests. Damaging ecosystem changes were also being driven by the widespread diversion of freshwater for irrigation purposes, it said.
Mr. Valderrabano said mangroves need help to adapt to climate change and become more resilient.
“This will be vital if we want to prevent some mangrove ecosystems from disappearing altogether,” he said. – Reuters
MEXICO CITY – Mexico, reeling from a heat wave that has already broken records, caused power outages and killed people and animals, could see “unprecedented” temperatures over the next two weeks, the country’s largest university warned on Wednesday.
The extreme heat, fueled partly by the most recent El Nino weather phenomenon, will arrive with 70% of Mexico in drought and a third in severe drought, according to data from the national water commission.
“In the next 10 to 15 days, the country will experience the highest temperatures ever recorded,” researchers from the National Autonomous University of Mexico (UNAM) said in a statement.
Temperatures in the capital could reach a record 35 degrees Celsius (95 degrees Fahrenheit) in the next two weeks, said Jorge Zavala, director of UNAM’s Institute of Atmospheric Sciences and Climate Change.
Most of the metropolitan area’s 21 million residents – accustomed to more temperate weather – lack air conditioning. Earlier this month, the capital was one of at least ten cities in Mexico that registered their hottest day on record.
Mexican health ministry data shows at least 26 people have died from heat-related causes between the start of the hot season on March 17 and May 11.
The heat has also taken a toll on some threatened species, including howler monkeys, which have been dying from suspected dehydration in southern Mexico.
In the city of Leon in the central state of Guanajuato on Tuesday, a caretaker provided water for geese and ducks after a nearby dam reservoir dried up.
“We have to help them a little because they suffer,” said Carlos Cuevas, the caretaker.
Under a tent near the parched reservoir, Alfonso Cortes, a local Catholic archbishop, led a mass for rain as parishioners fanned themselves in the heat.
“We are going to pray that the Lord will send our state and all human beings the gift of water,” Mr. Cortes said.
“Everything revolves around our life and water.” – Reuters
TAIPEI/BEIJING – Taiwan’s military mobilized its forces and said it was confident it could protect the island, after China started two days of “punishment” drills around Taiwan on Thursday in what it said was a response to “separatist acts”.
The exercises, in the Taiwan Strait and around groups of Taiwan-controlled islands that sit next to the Chinese coast, come just three days after Lai Ching-te took office as Taiwan’s new president, a man Beijing detests as a “separatist”.
China, which views democratically governed Taiwan as its own territory, has denounced Lai’s inauguration speech on Monday, in which he called on China to stop its threats and on Tuesday Chinese Foreign Minister Wang Yi called Lai “disgraceful“.
Lai has repeatedly offered talks with China but been rebuffed. He says only Taiwan’s people can decide their future, and rejects Beijing’s sovereignty claims.
The Eastern Theatre Command of the Chinese People’s Liberation Army (PLA) said it had started joint military drills, involving the army, navy, air force and rocket force, in areas around Taiwan at 7:45 a.m. (2345 GMT).
The drills are being conducted in the Taiwan Strait, the north, south and east of Taiwan, as well as areas around the Taiwan-controlled islands of Kinmen, Matsu, Wuqiu and Dongyin, the command said in a statement.
Taiwan’s defense ministry condemned the drills, saying that it had dispatched forces to areas around the island and was confident it could protect its territory.
“The launch of military exercises on this occasion not only does not contribute to the peace and stability of the Taiwan Strait, it also highlights (China’s) militaristic mentality,” the ministry said.
A senior Taiwan official, speaking anonymously given the sensitivity of the matter, told Reuters that the drills are part of a scenario Taiwan had anticipated and that the island’s government has a “comprehensive grasp” of Chinese military movements.
Taiwanese officials had said in the run-up to the inauguration they were keeping watch for Chinese military movements.
The drills focus on joint sea-air combat-readiness patrols, precision strikes on key targets, and integrated operations inside and outside the island chain to test the “joint real combat capabilities” of the forces, China’s military said.
“This is also a strong punishment for the separatist acts of Taiwan independence forces and a stern warning against the interference and provocation by external forces,” the command added.
Chinese state media published a map of the drills zones, in five areas all around Taiwan and the islands Taiwan controls near the Chinese coast.
Su Tzu-yun, a research fellow at Taiwan’s top military think tank, the Institute for National Defense and Security Research, said that although the drills would only last two days, the scope is large relative to previous exercises, as they included Taiwan’s outlying islands.
This is designed to demonstrate China’s ability to control the seas and prevent the involvement of foreign forces, he added.
“The political signals here are greater than the military ones,” he added.
There was no sign of alarm in Taiwan, where people are long used to Chinese military activity. The benchmark stock index .TWII, currently at a historic high, was up 0.2% on Thursday morning.
“The drills will have a short-term psychological impact, but won’t reverse the long-term upward trend of Taiwan stocks,” said Mega International Investment Services vice president Alex Huang.
In August 2022, China launched live-fire military exercises around Taiwan immediately after a visit, much condemned by Beijing, by former U.S. House speaker Nancy Pelosi. That series of exercises, the scale of which was unprecedented, lasted for four days, followed by several days of additional drills. – Reuters
TRAT, Thailand – Aquatic life from coral reefs to fish in the Thailand’s eastern gulf coast is suffering as sea surface temperatures hit record highs this month amid a regional heatwave, worrying scientists and local communities.
The once vibrant and colorful corals, about five meters (16 feet) underwater, have turned white in a phenomenon known as coral bleaching, a sign that their health was deteriorating, due to higher water temperatures, scientists say.
Sea surface temperatures in the Eastern Gulf of Thailand reached 32.73°C (90.91°F) earlier this month while underwater readings are slightly warmer, with dive computers showing around 33°C, data shows.
“I couldn’t find a single healthy coral,” said marine biologist Lalita Putchim of the Department of Marine and Coastal Resources (DMCR) after completing a dive in the gulf coast.
“Almost all of the species have bleached, there’s very little that’s not affected.”
The Trat archipelago is home to over 66 islands, with over 28.4 square kilometers (2,841 hectares) of coral reef, where Lalita has found that up to 30% of coral life was bleaching and 5% had already died.
If water temperatures do not cool, more coral will die, Lalita said.
“It’s global boiling, not just global warming,” she said.
Rising temperatures were also impacting other marine life and the livelihoods of local fishermen including Sommay Singsura.
In recent years, his daily catch of seafood has been dwindling. Previously he had been able to make up to 10,000 baht ($275) a day, but now sometimes he comes back empty handed.
“There used to be jackfish, short mackerel, and many others … But now, the situation isn’t good. The weather isn’t like what it used to be,” Mr. Sommay laments.
Coral reefs are both a food resource and habitat for marine life, as well as being natural barriers preventing coastal erosion, scientists say.
If bleaching causes marine life to decrease, fishermen will need to spend more to get their catch, which could see selling prices rise, said Sarawut Siriwong, the dean of faculty of Marine Technology at Burapha University.
“While this (coral bleaching) would affect food security, at the same time, their (community) income stability is also at stake,” he said. – Reuters
TOKYO – The dollar hovered near a one-week high on Thursday following its best day this month against its major peers after minutes of the last Federal Reserve meeting revealed a willingness to raise interest rates among some officials.
Sterling remained firm after jumping to a one-month peak following hotter-than-expected inflation, and also drew support from the announcement of a UK parliamentary election for July 4.
The yen languished just above a three-week low despite the continued threat of intervention by Japanese officials.
Ether continued to hover near Tuesday’s more than two-month peak amid speculation over the potential approval of U.S. spot exchange-traded funds that would track the world’s second-biggest cryptocurrency.
The dollar index =USD, which tracks the currency against six major rivals including the euro, sterling and yen, was little changed at 104.89 after gaining 0.28% overnight.
Fed officials at their April 30-May 1 session indicated they still had faith that price pressures would ease, if only slowly, but the meeting summary also reflected discussion of possible tightening.
“The minutes revealed concerns that inflation might not decline as quickly as hoped and that some members are open to further rate hikes if needed,” supporting the dollar, James Kniveton, senior corporate FX dealer at Convera, wrote in a note to clients.
“Consequently, expectations for the first rate reduction have shifted from September to November. With the Federal Reserve meeting occurring just after the U.S. elections, early November could see significant market volatility.”
The dollar was little changed at 156.77 yen JPY=EBS after rising to 156.85 overnight, the highest since May 1. Traders and analysts suspect Japan’s Ministry of Finance intervened several times to support the yen following its plunge to a 34-year low of 160.245 per dollar on April 29.
The euro EUR=EBS ticked 0.06% higher to $1.08275, but remained close to the overnight low of $1.08175.
Sterling GBP=D3 held its ground at $1.2723, following a surge to as high as $1.27610 on Wednesday for the first time since March 21 as sticky inflation crushed bets for a June cut by the Bank of England.
Meanwhile, Prime Minister Rishi Sunak called a national election, which his Conservatives are widely expected to lose to the opposition Labour Party after 14 years in power.
“A Labour win with prospects of a softer Brexit are GBP+, especially vs EUR,” TD Securities analysts wrote in a note.
“However, GBP is likely to trade on this only around the election date as inflation and rate divergence remain the primary FX drivers, especially into first cuts.”
Among cryptocurrencies, ether ETH= traded at about $3,763, up slightly from the close on Wednesday. It surged as high as $3,838.80 on Tuesday for the first time since March 15.
Bigger rival bitcoin BTC= was little changed at $69,491 after reaching $71,957 on Tuesday for the first time since April 9. – Reuters
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SOURCE: THE CONVERSATION
by Philip C. Almond, Emeritus Professor in the History of Religious Thought, The University of Queensland
New norms for differentiating supernatural phenomena from the natural within Roman Catholicism took effect on May 19.
The new norms arise from the need to evaluate as quickly as possible the supernatural origin or otherwise of an array of phenomena occurring increasingly within the Catholic world and spreading quickly via social media.
Possible supernatural phenomena include apparitions – especially of Jesus or the Virgin Mary – interior or exterior voices, writings or messages from the beyond, the weeping or bleeding of sacred images, the bleeding of consecrated eucharistic hosts, and so on. Visions of the Virgin Mary, in particular, continue to occur regularly within Catholic Christendom.
The new document neither endorses supernatural phenomena nor rejects them. Rather, it provides a set of criteria and processes by means of which the church can officially discriminate between them and separate the authentic from the fake. So what do we need to know about these norms?
The new norms replace an earlier document from 1978.
In this 1978 document, the decision whether to approve a phenomenon as supernatural or not was essentially left in the hands of a local authority – in most cases, a diocesan bishop.
According to criteria, the bishop decided on a choice of two options: supernatural, or not.
In the case of a judgment that a phenomenon was of supernatural origin, he could permit a public manifestation of devotion to the supernatural phenomenon equivalent to his saying, “for now, nothing stands in the way” (“pro nunc nihil obstat”).
Under this document, central control of the Vatican was minimal. Local authorities were in control.
The new document is intended to more effectively oversee the validation of such events.
It does so by centralizing authorization, management and control of the supernatural within the Dicastery for the Doctrine of the Faith, better known as “the Inquisition”. Any decision bishops or any other authority wish to make has to be submitted to the Dicastery for approval.
The new document declares the Holy Spirit may:
reach our hearts through certain supernatural occurrences such as apparitions or visions of Christ or the Blessed Virgin.
But the central authority of the church will now decide where, when and how God works, his wonders or miracles to perform.
Overall, God will be shown to be minimally directly intervening in the world.
Rather than a relatively simple judgment whether an event is supernatural or not, the church now provides six possible ways an event can be classified.
These range from “nihil obstat” (“nothing stands in the way”) to “declaratio de non supernaturalitate” (“declaration of non-supernaturality”).
But even where a nihil obstat is granted, as a rule, neither a diocesan bishop, nor any conference of bishops, nor the Dicastery itself “will declare that these phenomena are of supernatural origin”.
In short, a clear declaration of a supernatural event having taken place will virtually never happen (or, at least, unless the Pope intervenes).
A declaration of non-supernaturality will be made if it is discovered
the phenomenon was based on fabrication, on an erroneous intention, or on mythomania.
In short, if a fake or a hoax is discovered.
Between these two extremes lie four other possible judgments. Although there are positive signs of divine action in each of these, they each indicate increasing worries about credibility. The first two of these concern increasing doubts about the credibility of the phenomenon. The next two concern increasing doubts about the honesty of the people involved.
If a diocesan bishop, after consultation, believes a supernatural phenomenon requires investigation, he alerts the Dicastery.
He then convenes an Investigatory Commission to carry out a “trial”. This trial will see witness examinations, sworn depositions, expert analysis of written texts, along with technical-scientific, doctrinal and canonical assessments. It is pretty much the traditional method of the Inquisition in modern dress (or vestments).
The commission finally makes a judgment on the truth of the matter based on positive and negative criteria.
Positive criteria include the reputation of persons involved, doctrinal orthodoxy, exclusion of fakery and the fruits of Christian life that have resulted from it.
Negative criteria include the possibility of manifest error, potential doctrinal errors, breeding of division within the church, an overt pursuit of profit, power, fame or social recognition, and the personal and public ethical rectitude of those involved, along with their mental health.
In the light of the commission’s work, the bishop proposes to the Dicastery a judgment following one of the six ways of classification. The Dicastery then makes a final judgment to be delivered to the bishop, who is obliged to implement the decision and make it public
There is deep concern within the Vatican over misinformation and disinformation about the supernatural.
The document informs us:
Now more than ever, these phenomena involve many people […] and spread rapidly across different regions and many countries.
The digital world is a place of multiple meanings where the supernatural occupies a space somewhere between reality and unreality. It is a domain where belief is a matter of choice and disbelief is willingly and happily suspended.
Ironically, the outcome of the new norms will be to minimize the number of phenomena recognized as “supernatural” within the Catholic Church. In effect, it will put stricter limits on God’s action within the world.
The new norms within the church to manage the supernatural are intended more to “disenchant” the world than further to “enchant” it.
The Aboitiz Group reinforced its transformation goals for 2024 and beyond as it put its partnerships, acquisitions, and interbusiness opportunities front and center during its 8th annual Leaders Conference (LeadCon) held this month. Over 500 Aboitiz leaders gathered for the conference at Solaire Grand Ballroom, where the Group not only unveiled its growth strategies, but also presented its cutting-edge innovations including its first pair of AI-powered virtual team members.
With the LeadCon’s theme ‘Unlocking Techglomerate Potential’, the Group took stock of the steps that have been taken in recent years in order to transform itself into the Philippines’ first techglomerate. As the Group experienced massive growth in recent years, it is poised to form a sustainable business ecosystem among its many diverse companies that will become the core of its strategy in the coming years.
The Aboitiz Group is in the third year of its Great Transformation initiative, with everything from its culture, to processes, to technology evolving at a rapid pace. Aboitiz Group President and CEO Sabin M. Aboitiz emphasized the need for team leaders to imbibe the value of transformation and be the examples for their team members.
“Our people will never change unless our leaders do, and our leaders will never change unless they know why they’re doing it and why it’s important. It’s our responsibility as leaders to make sure everyone is supported. When we genuinely care about our teams, we create a leadership that inspires more than motivates,” Sabin Aboitiz said.
Sabin Aboitiz added that the LeadCon is an avenue for the Group’s team leaders to learn the key factors to unlocking techglomerate potential for their teams — namely strategy, synergy, and transformation — directly from Aboitiz’s top brass. Each key speaker in the event offered a view of the Aboitiz Group’s transformation journey and the opportunities that lie ahead.
Chris Beshouri, Aboitiz Equity Ventures’ (AEV) Chief Strategy Officer, presented how the Aboitiz Group has rapidly transformed in the last decade after divesting its shipping and transport business. In such a short timespan, the Group has expanded to become a major conglomerate, diversifying its business interests with big-ticket acquisitions such as Citibank’s Philippine consumer banking business, the operation and management of the Mactan-Cebu International Airport, and a 40% stake in Coca-Cola Beverages Philippines, Inc., among others.
The Group has also entered into major partnerships. One is with Japan’s largest power generation company JERA, and a separate partnership with Meralco PowerGen and San Miguel Global Power Holdings for the country’s first and most expansive integrated LNG facility in a deal worth $3.3 billion. In just three and a half years, the Aboitiz Group had entered into P255 billion worth of deals. According to Beshouri, this is the clearest sign yet of the Group’s transformation.
“The goal of transformation is to have impact. And the potential for this Group to have economic impact is enormous. If you add up the market value of the (Aboitiz) Group, we represent an estimated 4%-5% of the total PH stock market capitalization as of 2023,” Beshouri said.
Meanwhile, Eduardo Aboitiz, AEV Chief Synergy Officer, discussed the important role synergies will play in the pursuit of the Group’s goals. Eduardo contextualized synergies as activities wherein Aboitiz businesses work together, enhancing value creation and making the whole Group to be more than the sum of its parts.
He shared that the Group is not starting from scratch. The Aboitiz story began with abaca production. From abaca, the Group started producing rope and mainly selling this to the shipping industry — which eventually became the Group’s flagship business for over 80 years.
Today, the Aboitiz ecosystem is wider, resulting in more synergy opportunities. A straightforward example is AboitizPower (AP) reliably providing 100MW of competitively-priced power to its sister companies such as Republic Cement, Pilmico, UnionBank, Aboitiz Infracapital, and Coca-Cola. The Group also leverages on synergies to strengthen its Economic Estates. The Group combines its various assets such as power, water, construction, and banking to create a stronger offer to estate locators, enhancing value for all parties involved.
There are other initiatives being pursued. Still, despite these, Eduardo emphasized that massive opportunities remained untapped. He challenged everyone to maximize synergies and integrate the thinking in every team member of the Group.
“Synergies do not start and end with the people in this room. Everyone can contribute. As we embark on this journey, we will start to see more connections appear. When we maximize these connections, that’s when we can become a fully-integrated ecosystem and be fully transformed,” he said.
The Group’s businesses are not the only ones called to transform, but the individual team leaders as well. AEV Head of Transformation Dea Franko-Csuba called on the leaders to be adaptive and open to technologies, processes, and behaviors that can improve themselves, their teams, and the business. She cited the need to embrace emerging technologies that will assist teams in automating and optimizing work processes, such as artificial intelligence (AI).
“The Transformed Aboitiz Group is not an end destination. The future of our industries is unfolding in front of our eyes and we have to constantly reimagine ourselves on the fly. To build an adaptive, intelligent organization, we need to change the way from command and control leadership to an agile, empowering leadership style, where the leaders define where we are and where we are heading but the team figures out how to get there as a collaborative effort,” Franko-Csuba said.
As a highlight of her discussion, she introduced the Aboitiz Group’s first-ever virtual team members, Elsie and Albert. The AI avatars were presented onstage, and gave helpful summaries of the presentations throughout the conference. They were also available to answer queries outside the event entrance, showcasing the ability of AI to assist the leaders and their teams.
The LeadCon also welcomed guest speaker Michael J.T. Steep, Founder of the Stanford University Disruptive Technology Program, who cited the need for innovation to facilitate transformation. He advocated for the use of AI in order to assist in the growth of businesses, and encouraged leaders to not only focus on being efficient workers, but also to foster people and networking skills to find the experts that their businesses need.
The Aboitiz Group’s Leaders Conference gathers team leaders from across the Group’s various business units in order to set direction and strategy as well as share best practices and achievements within the Group. This year’s conference makes a return to a grand in-person event after several years of being held virtually or on a hybrid basis.
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By Aaron Michael C. Sy, Reporter
A PROLONGED depreciation of the Philippine peso could stoke inflation, though it could also benefit the economy by boosting export earnings, analysts said.
“We see the peso’s weakness against the dollar persisting,” Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, Inc., said in a Viber message on Wednesday.
“The BSP has to be ready, as they have done in the past, to intervene and battle volatility and speculative play,” he added.
Diwa C. Guinigundo, country analyst at GlobalSource Partners, said the peso’s weakness could boost export competitiveness “as long as its pass-through to inflation does not exceed the benefits of external competitiveness.”
“That is growth positive,” he said in a Viber message. “As long as the peso avoids a sharp and prolonged depreciation, the impact on inflation could be manageable. Otherwise, imported inflation could be very problematic.”
The peso closed at P58.06 against the dollar, 21 centavos stronger than on Tuesday, when it closed at the weakest level in 18 months, according to Bankers Association of the Philippines data.
The currency has depreciated by P2.69 this year from its P55.37-a-dollar close on Dec. 29, 2023.
Mr. Guinigundo, a former central bank deputy governor, said the peso could strengthen if the Bangko Sentral ng Pilipinas (BSP) turns more hawkish again.
“Any hint of the BSP’s less hawkish stance could move the market,” he added.
BSP Governor Eli M. Remolona, Jr. last week said the central bank could cut rates as early as August and earlier than the Fed amid easing inflation. He also expects one or two 25-basis-point rate cuts in the second half.
The peso is likely to be dragged down by the widening balance of payment (BoP) deficit, Mr. Guinigundo said.
The payment position widened to a $639-million deficit in April from the $148-million gap a year earlier, according to BSP data. This was also a reversal of the $1.17-billion surplus in March.
The BSP expects the country’s BoP position to end at a $700-million deficit, equivalent to 0.1% of economic output.
Juan Paolo E. Colet, managing director at China Bank Capital Corp., said the peso’s weakness could affect companies with dollar loans.
“Our currency’s weakness will have an impact on companies that have borrowed in US dollars but whose revenues are mainly in peso, because it becomes more expensive to [pay] the debt,” he said in a Viber message.
The peso has been weaker than its regional peers, and it’s mainly depreciating due to the Philippine central bank’s dovish tone, Emilio S. Neri, Jr., lead economist at Bank of the Philippine Islands, said in a Viber message.
“The Philippine economy’s narrowing current account deficit combined with possible softening of forthcoming US inflation may cap what seems to be a near-term overshoot of the exchange rate versus its expected medium-term trend,” he added.
The BSP estimates a $6.1-billion current account deficit this year, or 1.3% of economic output.
Companies welcome an earlier rate cut by the BSP because it is a sign of slowing inflation, Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., said in a Viber message.
Inflation quickened to 3.8% in April from 3.7% in March, still within the central bank’s 2-4% target for the year. It was slower than 6.6% a year earlier.
It averaged 3.4% in the first four months, below the BSP’s 3.8% full-year forecast.
Mr. Ravelas said the peso would probably remain at the P58 level as long as the BSP remains dovish.
By Revin Mikhael D. Ochave, Reporter
THE PHILIPPINE government and private sector should harness the potentials of education, manufacturing and tourism, which are critical to economic growth, JG Summit Holdings, Inc.’s top executive said on Wednesday.
The state should serve as a “key enabler” by facilitating the cost and ease of doing business, while private companies should continue to invest, create jobs and wealth to improve lives, JG Summit President and Chief Executive Officer (CEO) Lance Y. Gokongwei said in a speech at BusinessWorld’s economic forum in Taguig City.
“Underlying these three critical areas is, of course, the importance of both physical and technological infrastructure that will support and further hasten the growth of our human capital, manufacturing sector and tourism industry,” he added.
Mr. Gokongwei said young Filipinos should have skills to let them keep up with an economy driven by technology, while teachers should be upskilled and reskilled in science, technology, engineering and mathematics.
He added that with an adequately equipped workforce, the government and business can “confidently woo global capital to pitch their tents in our country based on the undeniable resources we offer.”
Mr. Gokongwei said revitalizing the manufacturing sector would also boost the economy.
“Our industrialization hinges on the government and private sectors jointly identifying and agreeing on the manufacturing industries that we need to develop, supported by enabling policies and incentives,” he said.
The bid to become a manufacturing economy also depends on the country’s ability to equip its workforce so it can meet the demands of the emerging industrial and technological landscape.
Mr. Gokongwei added that both direct and indirect tourism receipts should form part of the Philippines’ economic growth plans.
“Our natural wonders, our kindhearted people, and our ideal location — these are the perfect ingredients to make us a tourism powerhouse with significant contributions to our gross domestic product,” he said.
Philippine economic prospects remained bright despite risks and challenges, National Economic and Development Authority Secretary Arsenio M. Balisacan told the forum in a separate speech.
“The Philippines’ prospects remain bright and amidst current projections, we are working hard to keep our fundamentals sound,” he said.
“Despite some of the greatest challenges we have ever faced, we remain committed to meeting our short-term goals. We aim for no less than socioeconomic transformation in the medium term,” he added.
Mr. Balisacan cited the need to make economic growth more inclusive amid improving poverty statistics in recent years.
“We must enhance access to high-quality employment and market opportunities and strengthen social protection, reduce poverty to single-digit levels and improve the overall quality of life,” he said.
The economy grew by 5.7% in the first quarter, slower than expected and below the state’s 6-7% target for the year.
‘SYNERGY’
George I. Royeca, chief executive officer of motorcycle ride-hailing mobile app Angkas, said informal workers have a lot to contribute to the economy.
“The challenge for us is how to create a platform for informal workers, how to provide financial services and raise financial literacy,” he told the forum. “I really hope that we can push the informal sector and make it really thrive.”
He added that the country should adopt innovative strategies in various industries.
Globe Telecom, Inc. Vice-President Emmanuel L. Estrada said there’s a need to bridge the digital divide.
“Digital connectivity has now become fundamental to economic progress,” he said at the forum. “We need not just connectivity, but universal and meaningful connectivity.”
Jesus C. Romero, chief operations officer and senior executive vice-president at Converge ICT Solutions, Inc., said the local broadband industry still has a lot of work to do in boosting capacity and cutting costs.
“There is no one-size-fits-all internet for all situations,” he told the forum. “There will be people who are better off with mobile and those who are better off with fiber broadband.”
Miguel G. Belmonte, president and CEO at BusinessWorld Publishing Corp., said public-private coordination is needed to attract investments and create more jobs.
“Among these growth drivers, what stands out to me is the inspiring synergy between the government and the private sector, which is a major driving force for the country in spurring investment, innovation and job creation,” he said.
“The private sector employs over 60% of the labor force and contributes a large chunk to Philippine GDP,” Mr. Belmonte said. “With critical industries like energy, telecommunications and infrastructure having given a huge potential to the private sector, the possibilities for the country are truly marvelous.”
By Beatriz Marie D. Cruz, Reporter
THE NATIONAL Economic and Development Authority (NEDA) on Wednesday backed a proposal allowing the National Food Authority (NFA) to boost rice stocks through imports during emergencies amid spiraling prices.
“I’m still in favor of strengthening the NFA’s role in buffer stocking for emergency purposes,” NEDA Secretary Arsenio M. Balisacan told reporters on the sidelines of BusinessWorld’s economic forum.
“There has to be a way of sourcing the buffer stocks in a way that won’t further destabilize the market,” he said in mixed English and Filipino. “That involves, under those circumstances where production is lacking, getting the buffer stock from imports.”
If it can’t import directly, the agency should be allowed to buy rice stocks from importers to boost its stock, he added.
The Philippines is hard-pressed to ensure that it has enough rice supply amid a prolonged dry spell brought by El Niño and the looming rains from La Niña.
“Consumption is growing simply because the population is growing, so there is that gap,” Mr. Balisacan said. “When you have that gap, you have to have additional sources of supply.”
Under the Rice Tariffication Law, the NFA can only keep its buffer stock by buying rice from local farmers. But the local shortage keeps the agency from fulfilling its mandate, Mr. Balisacan said.
State auditors in 2022 flagged the NFA’s failure to stock up on rice. The agency’s rice inventory ranged from 111,042 metric tons (MT) to 182,612 MT, far behind the national rice buffer stocking requirement of 300,000 MT, the Commission on Audit said.
The House of Representatives on Tuesday passed on third and final reading changes to the law, including restoring the NFA’s regulatory power over the rice industry.
House Bill No. 10381 empowers the NFA to import rice if there are no available local sources, upon the approval of the Agriculture secretary.
The NFA may also require warehouses to register in its national database. The agency may also collect and analyze data on rice trading activities.
Under the bill, a food security emergency includes a shortage in rice supply and extraordinary price increases.
The Senate has yet to pass a counterpart measure.
Mr. Balisacan said Administrative Order No. 20 issued by President Ferdinand R. Marcos, Jr. last month would ensure timely and adequate farm imports.
The President had ordered agencies to reduce nontariff barriers and administrative restrictions on farm imports.
The government should not rely on the NFA alone to stabilize rice prices, Mr. Balisacan said. “We have been there, and we don’t want to go back to a regime that has been shown to not work.”
Local regular milled rice costs P49.37 a kilo, while well-milled rice costs P51.28, according to the Agriculture department’s latest price watch. Imported regular milled rice and well-milled rice cost P49.61 and P52.50.
US HOUSEHOLDS continued to feel pinched by inflation in late 2023 even as price pressures ebbed, the US Federal Reserve reported on Tuesday, with most Americans saying their financial situation had changed little in the past year, while parents reported times had gotten harder.
About 72% of adults were doing OK financially as of October 2023, the Fed’s annual survey on household economics and decision-making showed.
That was down from 78% in 2021 and the lowest since 2016, though little changed from 73% in 2022. The share of parents doing OK financially dropped by 5 percentage points to 64%, the lowest since 2015 when data collection began.
Inflation remained the top financial concern, according to the report. It said 65% of adults said high prices had made their situations worse, even though consumer inflation fell sharply from about 9% in June 2022 to below 4% by the time the survey was taken.
While 34% said their family’s monthly income had risen in the past year, 38% said their spending had also increased.
About 63% of adults said they could cover a hypothetical $400 emergency expense using cash or its equivalent, the same as in 2022 but down from a record high of 68% in 2021.
Covering rental housing costs was a greater challenge last year than in the year before, with 19% of renters saying they had been behind in the rent at some point in the prior year, up from 17% in 2022.
Rental costs, which have proven to be among the reasons inflation has not eased as much as Fed policy makers had hoped, were up far more than inflation overall, with the median monthly rent rising by 10% to $1,100, according to the survey.
The survey included responses from 11,000 people and was conducted in October.
It was the latest in an array of pulse-taking of US consumers to show a generalized gloom hanging over Americans’ view of the economy and their own financial well-being even as growth has exceeded expectations, and the job market remains strong.
Monthly surveys from other organizations like the Conference Board and the University of Michigan have shown a persistent pessimism that began about three years ago alongside the arrival of the highest inflation since the 1980s.
‘HIGHEST PRIORITY’
The dourness registers with Fed officials who continue to see the effort to bring inflation back to the central bank’s 2% target as their top priority.
The burden of rapid inflation “was felt early because goods prices and prices in the market went up faster than wages and income then, and so people definitely felt they were falling behind,” Atlanta Fed President Raphael Bostic said at a conference in Florida this week.
Wage gains have generally exceeded price increases over the last year, especially for the lowest earners. Still, consumers retain memories of the pain inflicted by price pressures, and surveys, including from the Fed, show how deeply that has become ingrained.
“People don’t do that math continuously to know that they’re catching up,” Mr. Bostic said.
“I think there’s just some lived experiences (that are) going to have to happen where people will at some point do a recalibration, but I don’t know exactly when that’s going to be,” he said. “And so, for me, it’s just we got to get inflation back to our target. And that’s got to be the highest priority.” — Reuters
