An employee holds 1000 Russian Rouble notes at Goznak printing factory in Moscow, Russia July 11, 2019. — REUTERS
LONDON — Russia’s richest people added $72 billion to their fortunes over the past year, taking their collective wealth to $577 billion, Forbes said on Tuesday, with Vagit Alekperov, former president of oil major Lukoil, taking Russia’s top spot.
In 2021, before Russia’s invasion of Ukraine, Forbes had estimated the total wealth of Russian billionaires at $606 billion. High commodity prices in the past two years and Russia’s war-focused economic growth stifling the impact of Western sanctions have aided a recovery towards that figure.
Many Russian billionaires fell under Western sanctions as the West sought to punish President Vladimir Putin and those deemed close to him for launching the war in Ukraine. Their total wealth dropped to $353 billion in 2022.
Alekperov’s fortune rose to $28.6 billion from $20.5 billion over the past year, Forbes said. He took first place in Russia from now seventh-placed Andrei Melnichenko, who made his fortune in fertilizers and whose worth fell to $21.1 billion from $25.2 billion.
Leonid Mikhelson, the head of Russian natural gas producer Novatek NVTK.MM, was listed in second place by Forbes, with his wealth increasing by $5.8 billion to $27.4 billion.
Forbes said there were now more billionaires worldwide than ever, with 2,781 in total and the top 20 accounting for most of the gains in wealth. Alekperov came in 59th place globally.
“They’re richer than ever, worth $14.2 trillion in aggregate, up by $2 trillion from 2023,” Forbes said.
Putin has repeatedly touted the failure of Western sanctions to destroy the Russian economy and played up the fact that Russia’s economy expanded faster last year – with GDP growth of 3.6% – than any of the Group of Seven nations largely responsible for sanctions.
Boasting vast natural resources, Russia’s economy rebounded sharply from a 2022 slump, but the growth relies heavily on state-funded arms and ammunition production for the war in Ukraine, masking problems that are hampering an improvement in Russians’ living standards.
This year, the International Monetary Fund (IMF) expects Russian GDP growth of 2.6%, but foresees tough times ahead for the economy due to outflows of people and shortages of technology.
Russian business people have in benefited from the Western corporate exodus, with scores of companies selling assets cheaply or having their Russian operations seized and local managers installed. — Reuters
MG in the Philippines is set to shake up the local automotive scene with a huge, diverse, and innovative lineup of vehicles and announcements at this year’s Manila International Auto Show (MIAS) this coming April 4-7 at the SMX Convention Center in Pasay City.
Promising to deliver an exciting and can’t-miss glimpse of a next-level experience for Filipino motorists, the brand is preparing a major showcase of an array of new MG vehicles set to appear at the show, led by the recently launched MG ONE crossover SUV and the groundbreaking EV roadster MG Cyberster.
MG Cyberster
The Cyberster champions MG’s commitment to futuristic innovation and sustainability through the larger push for electric vehicles (EVs) — it’s the brand’s first-ever all-electric sports car, and the Philippines got its first taste of it back in March when it touched down with British adventurers the Turner Twins for the local leg of the Cyberster World Tour.
Rounding out MG’s futuristic entries at MIAS is the crossover SUV MG ONE, the first car to be built using MG’s SIGMA architecture platform.
Joining the Cyberster are MG’s other upcoming EV and ICE offerings that are entering the Philippines this week, as well as the brand’s familiar and reliable nameplates, which include the MG ZS crossover SUV and the MG5 subcompact sedan.
“The innovation and cutting-edge technology that delivers the best possible performance to Filipino motorists that MG is bringing in its MIAS lineup is the real culmination of 100 years of the brand’s motoring excellence,” said Felix Jiang, MG Philippines president. “We at MG in the Philippines are truly excited to usher in the future to a country that’s ready for the next level of automobiles.”
Visit the MG booth and experience the brand’s grand lineup at the SMX Convention Center leg of MIAS 2024 from April 4-7, 2024.
To know more about MG’s full slate of vehicles, visit mgmotor.com.ph.
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A pair of Federal Reserve policymakers often considered to have divergent monetary policy leanings on Tuesday both said they think it would be “reasonable” to cut U.S. interest rates three times this year, even as stronger recent economic data has sown investor doubts about that outcome.
Cleveland Fed Bank President Loretta Mester and San Francisco Fed Bank President Mary Daly last month joined the U.S. central bank’s unanimous vote to leave short-term interest-rates in the 5.25%-5.5% range to keep putting downward pressure on inflation.
“At this point, the economy and policy are in a good place,” Daly said at an event in Las Vegas. “Inflation is coming down, but it’s slow, it’s bumpy and slow. The labor market is still going strong and growth is going strong. So there’s really no urgency to adjust the rate.”
Projections published at the Fed’s March meeting showed the typical policymaker expected to deliver three quarter-point interest rate cuts this year, though nearly half of officials – nine of the 19 – see two or less this year, according to forecasts issued last month.
“I think that is a very reasonable baseline,” said Daly, often pegged as dovish though a self-described policy centrist.
Still, Daly said, there is a “real risk” of cutting rates too soon and locking in the “toxic tax” of too-high inflation.
Mester, on the more hawkish end of the Fed’s policy spectrum, told reporters on Tuesday that three rate cuts for this year remain a “reasonable” forecast while deeming it a “close call.”
Though, like Daly, she acknowledged the risk of keeping rates high for too long and unnecessarily harming the labor market, “at this point, I think the bigger risk would be to begin reducing the funds rate too early,” Mester said at an event in Cleveland.
Inflation by the Fed’s targeted measure was 2.5% in February, far below its mid-2022 peak of around 7% but still above the 2% goal, with progress slower so far this year than for much of last year. Meanwhile the labor market has been strong, with unemployment at 3.9% in February.
Data this week showed manufacturing unexpectedly rebounding, with a rise in raw materials prices raising fears that inflation could resurge.
Investors are eager to hear how Fed Chair Jerome Powell, speaking at Stanford University on Wednesday, adds it all up. They are also focused on whether the next monthly read on the U.S. labor market, due on Friday, backs up other data suggesting the labor market is cooling, and if fresh inflation reads ahead of the Fed’s next two meetings, April 30-May 1 and June 11-12, show prices are as well.
Powell, speaking last Friday, said the stronger-than-expected inflation readings so far this year have not changed his overall view that inflation is headed downward and the Fed will cut rates later this year.
Financial markets are betting heavily against a May 1 rate cut. Mester on Tuesday said she does not think there will be enough information between now and then to justify it.
But that could change by June, Mester said.
“We have to be data dependent so I don’t want to rule that out,” Mester told reporters after her speech.
Interest-rate futures prices currently imply about a 65% chance of a rate hike by June, down from about 70% after the Fed’s March meeting. — Reuters
WASHINGTON – U.S. President Joe Biden sought to manage tensions over the South China Sea and Taiwan’s May presidential inauguration in a call with Chinese President Xi Jinping on Tuesday, their first direct talks since meeting in November.
Biden used the call to emphasize “the importance of maintaining peace and stability across the Taiwan Strait and the rule of law and freedom of navigation in the South China Sea,” the White House said in a statement.
Xi said ties between the China and the U.S. are beginning to stabilize, but warned that they could “slide into conflict or confrontation,” according to China’s official Xinhua news agency.
White House national security spokesperson John Kirby told a briefing after the call that U.S. Secretary of State Antony Blinken would travel to China in the coming weeks. That follows a trip this week by Treasury Secretary Janet Yellen.
The nearly two-hour call between the leaders – described by Kirby as “business-like” – comes ahead of meetings next week between Biden, Japanese Prime Minister Fumio Kishida and Philippines President Ferdinand Marcos as China flexes its military might.
On Monday, a senior U.S. administration official said the U.S. and Chinese militaries would hold maritime talks this week in Honolulu. Washington has expressed concern over China’s coast guard’s use of water cannons on Philippines vessels near Second Thomas Shoal in a disputed section of the South China Sea.
An escalating diplomatic row and recent maritime run-ins between the two Asian countries has made it a potential flashpoint between the U.S. and China.
Beijing claims vast portions of the South China Sea, sometimes in direct opposition to international law.
“China seems determined to continue to run these gray zone operations, driving the U.S.-Philippine alliance and Philippines-Japan security ties closer, which we’ll see on display next week,” said Gregory Poling, a South China Sea expert at the Center for Strategic and International Studies, referring to the trilateral summit in Washington.
‘CREATING RISKS’
Xi and Biden also discussed U.S. efforts to block certain U.S. technologies, including advanced semiconductors, from export to China.
Xi warned Biden that the U.S. is “not de-risking but creating risks” by suppressing China’s trade and technology development and adding new entities to U.S. sanctions lists.
Biden told Xi the U.S. “will continue to take necessary actions to prevent advanced U.S. technologies from being used to undermine our national security, without unduly limiting trade and investment,” according to the White House.
Kirby said Biden broached U.S. concerns about popular social media app TikTok, which faces proposed U.S. legislation that would force its Chinese-owner ByteDance to divest over data security and disinformation concerns.
“He made it clear to President Xi that this was not about a ban of the application, but rather our interest in divestiture so that the national security interests, and the data security of the American people can be protected,” Kirby said.
TAIWAN TEST
China’s response to Taiwan’s presidential inauguration in May will test the stability of relations between Beijing and Washington.
China regards Taiwan, a self-governed island with democratic elections, as part of its territory and recently dropped language about a “peaceful reunification” from its budget. Taiwan strongly objects to China’s sovereignty claims and says only the island’s people can decide their future.
Taiwan’s current Vice President Lai Ching-te, who Beijing views as a separatist, won the presidency in January and Beijing has increased pressure on Taiwan ahead of his swearing in.
Xi urged Washington to translate “Biden’s commitment of not supporting ‘Taiwan independence'” into concrete actions, Xinhua reported.
Biden and Xi agreed in November to reopen military communications and cooperate to curb fentanyl production. After that meeting, Biden told reporters he had not changed his view that Xi is a dictator, a comment that China called “extremely absurd.”
But the two have looked to smooth over a rocky period in relations that took a turn for the worse after a suspected Chinese surveillance balloon transited the U.S. and was shot down by a U.S. fighter jet last year.
Biden and Xi’s call also addressed U.S. concerns over China’s support for Russia’s war against Ukraine, its economic trade practices, human rights abuses in Xinjiang and the denuclearization of the Korean peninsula, the White House said. — Reuters
TAIPEI – A 7.2 magnitude earthquake rocked Taiwan on Wednesday, the strongest tremor to hit the island in at least 25 years, shaking buildings from their foundations and sparking a tsunami warning for the islands of southern Japan and the Philippines.
Taiwan television stations showed footage of buildings at precarious angles in the sparsely populated eastern county of Hualien, near the quake’s epicenter.
Local media said some people were trapped, but there were no immediate reports of deaths or injuries.
The quake, which knocked out power in several parts of the capital Taipei, hit at 07:58 a.m. (2358 GMT) at a depth of 15.5km (9.6 miles) just off the eastern coast of Taiwan, according to Taiwan’s Central Weather Administration.
Japan’s weather agency said several small tsunami waves reached parts of the southern prefecture of Okinawa, and later downgraded the earlier tsunami warning to an advisory. It revised the magnitude to 7.7.
The Philippines Seismology Agency also issued a warning for residents in coastal areas of several provinces, urging them to evacuate to higher ground.
The quake was felt in Shanghai, a Reuters witness said. Chinese state media said it was also felt in Fuzhou, Xiamen, Quanzhou and Ningde in China’s Fujian province.
Aftershocks could still be felt in Taipei, according to a Reuters witness, with at least 25 aftershocks registered so far, according to Taiwan’s central weather administration.
China Earthquake Networks Center recorded five aftershocks of around 5 magnitude in Taiwan within an hour after the initial quake.
The Taipei city government has not received any reports of damage and the city’s MRT was up and running soon after, while electricity operator Taipower said more than 87,000 households in Taiwan were still without power.
Taiwan’s high speed rail operator said no damage or injuries were reported on its trains, but noted trains will be delayed while it carries out inspections.
Southern Taiwan Science Park, where semiconductor giant Taiwan Semiconductor Manufacturing Co has a plant, said companies were operating without impact.
TSMC said its safety systems are operating normally.
“To ensure the safety of personnel, some fabs were evacuated according to company procedure. We are currently confirming the details of the impact,” according to the company.
Shares of TSMC were down 1.4% in early trade, while Apple supplier Foxconn’s stock fell more than 2% and shares of flat panel maker Au Optronics dropped 1.7%.
Taiwan’s official central news agency said the quake was the biggest to hit the island since 1999 when a 7.6 magnitude tremor killed around 2,400 people and destroyed or damaged 50,000 buildings in one of Taiwan’s worst-recorded quakes.
Taiwan’s Central Weather Administration said the earthquake registered the second-highest intensity of an “Upper 6” in Hualien county, on the 1-7 intensity scale.
In an Upper 6 earthquake, most unreinforced concrete-block walls collapse and people find it impossible to remain standing or move without crawling, the Japan Meteorological Agency says. — Reuters
All is set for Franchise Asia Philippines Expo, Asia’s biggest franchise show and the country’s most awaited business opportunities event, on April 12 to 14 at the SMX Convention Center-Manila. Organized by the Philippine Franchise Association (PFA), this premier event promises to be a platform for entrepreneurs and investors seeking lucrative franchise opportunities and valuable business insights.
“Our show has always been in April,” explains PFA Chairman Chris Lim, “we just moved it to October the last 2 years because of our hosting of the meetings of the World Franchise Council (WFC) and the Asia-Pacific Franchise Confederation (APFC) last year.” Last year’s show was PFA’s biggest ever but this year’s show still promises to be a motherlode of franchise opportunities for Filipinos who want to start a business and achieve financial freedom.
With over 700 franchise brands and other business opportunities, Franchise Asia Philippines Expo 2024 offers visitors a one-stop shop of a variety of franchise investment packages and business solutions. From established brands to emerging concepts, expo visitors will have the chance to explore a diverse array of options across numerous sectors.
In addition to showcasing an extensive lineup of franchise brands and business solutions, the expo will also feature several seminars namely:
How to Invest in the Right Franchise — for aspiring franchisees who want to start a business via franchising
How to Franchise Your Business — for entrepreneurs who want to grow their business using the franchising business model
5 Ways to Grow Profit by Action Coach
Unified Branding: Bridging Generations for Business Growth and Scale
This year’s theme, “Explore. Expand. Excel.” encapsulates the essence of franchising as a pathway to business growth and success. “Whether attendees are seasoned franchisees looking to expand their portfolio or aspiring entrepreneurs seeking their first venture,” says Expo Chair Robert Trota, “the said event offers unparalleled opportunities for exploration and advancement.”
“We are thrilled to present Franchise Asia Philippines Expo 2024, where entrepreneurs can discover new opportunities, expand their networks, and excel in the dynamic world of franchising,” PFA President Joseph Tanbuntiong remarks. “With a diverse range of franchise brands and informative seminars, this event is a must-attend for anyone looking to enter or thrive in the franchise industry.”
Entrance to the Expo is free for those who register online. https://register.franchiseasia.com.ph/register/expo/.
“Franchise Asia Philippines Expo 2024 promises to be an invaluable experience offering a platform for networking, learning, and growth,” Expo Co-Chair Joey Alvero declares. “Don’t miss this opportunity to explore the exciting world of franchising and take your business aspirations to new heights.”
Franchise Asia Philippines 2024 is Co-Presented by PLDT Enterprise and Powered by SM Supermalls & GCash.
The event is also supported by Platinum Partners 7-Eleven, Caltex, Concepcion Industries, Megaworld, Seaoil, The Generics Pharmacy, Jollibee; Gold Partners Francorp, Gateway Mall 2, Potato Corner, Robinsons Malls, Qualiplus, Globaltronics; Silver Partners K2 Pharmacy, LT & G Credit Line, BBK, Famous Belgian Waffles, Kurimi Milk Tea Bar, Living Water Station, Goldilocks, Master Siomai, Max’s, Purenectar, Grainsmart, Shawarma Shack, Pheonix Super LPG, Mitsubishi, Unionbank, Oryspa; and Bronze Partners Alipay, BPI, Coolaire, Fruitas, Macao Imperial Tea, Mister Donut, Shakey’s, Julie’s, Unioil, Yale Smart Shop, Mr. Quickie, Waltermart & Bench.
Media Partners: Net 25 Eagle Broadcasting Corp., BusinessWorld, Business Mirror, Mega Mobile (Inquirer Mobile), Asia Journal / Balikbayan Magazine, The Philippine Star, Philippine Daily Inquirer, Daily Tribune, and Media Blitz
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Our interview with Sen. Cynthia A. Villar was scheduled for 10 a.m., and so this writer was at her Villar Farm School before 9 a.m., to “nest.” At 9:20 a.m., though, in walked the Senator, merienda and lunch for us in tow.
This small thing — coming in earlier than she was asked to — represents a small part of her nature: professional, pragmatic, empathetic, and someone willing to go beyond what is asked. She is surprisingly very motherly, your favorite “cool tita” in family reunions.
While we want to celebrate her achievements as a public servant, we also want to celebrate her life — from her childhood to her beginnings in business, and her motherhood towards her children and her home city, Las Piñas.
WETLAND, MANGROVES, AND MIGRANT BIRDS
Clockwise from left: Wetland Center, Visitor Center, Vermiculture, Bambusetum and Composting Facility
As soon as she sat down, true to her post as Chairperson of the Senate Committees on Environment and Agriculture, CAV immediately eagerly told us about the Las Piñas-Parañaque Wetland Park.
“It’s one-half Las Piñas, one-half Parañaque,” she begins. “‘Yung Parañaque is Freedom Island, ‘yung Las Piñas is Long Island.” The Wetland Park is also home to a Wetland Center, Wetland Museum, Visitors Center, a hall for lectures, and offices for the use of the Department of Environment and Natural Resources (DENR) and the Bureau of Fisheries and Aquatic Resources (BFAR).
The Las Piñas-Parañaque Wetland Park also has thirty-five hectares of mangroves, which help fish reproduce as well as protect the land and its residents against storm surge.
“It is the biggest spawning ground of fishes in Manila Bay, and it is giving livelihood to 300,000 fishermen in the area,” CAV says.
A HEART FOR WILDLIFE. Sen. Cynthia A. Villar points to a Chinese Egret which probably flew to the Las Piñas-Parañaque Wetland Park from winter in China, Japan, or Siberia.
She then gestures to the Las Piñas-Zapote River behind us, where we could see a long legged bird relaxing by the water. “That Chinese Egret flew to the river from the Wetland Park, where we host 159 species of birds, both local and migratory,” CAV says happily. “They stay here during winter in China, Japan, and Siberia. Some stay permanently.”
Among the birds that have found a home in the Las Piñas-Parañaque Wetland Park are the Philippine Duck and Black-Winged Stilt — both endangered species. “We have 1,000 of the remaining 100,000 in the world, here in Las Piñas,” she says about the Black-Winged Stilt. “This is why the Wetland Park was declared a Ramsar Site.”
Ramsar was a treaty signed in Iran in the early 1970s which was signed by 170 countries. If one is listed in the Ramsar list as one of the most important wetlands in the world, the government is mandated to protect it.
“We’re listed together with Tubbataha Reef, Palawan Underground River, Agusan Marsh, Olango Island in Cebu, Nauhan Lake in Oriental Mindoro, Negros Occidental Wetland, and the Sasmuan Pampanga Wetland,” CAV says with a huge grin. “Number six tayo, and then siya lang ang nasa Metro Manila, and in a major city.”
“We should be proud of it.”
RIVERS, AN ALTERNATE ROAD, AND HOMAGE TO A SAINT
As we were chatting on one side of the Villar Farm, the sound of Prinza Dam in the background proved soothing, even therapeutic (Listen to rain or water sounds at night on Spotify or YouTube and you would know what we mean. It helps one fall into deep, continuous sleep, which also has an impact on overall health.).
LAS PIÑAS RIVER DRIVE: (From left) Las Piñas river drive CAA-C5L, Zapote river drive (from CAVITEX-MCX) and Daang Hari to Nomo Road (Molino river drive)
We looked at the residential areas around the dam and the Las Piñas-Zapote River, and felt wistful about how blessed they are: the river is clean, which means it is not only good for the eyes but for the nose as well. Not to mention this is the view of motorists who pass through the Zapote River Drive, a project CAV made sure to complete.
“We clean the river and dam everyday,” CAV tells us as we drive in a golf cart to tour her Farm School and Tourist Farm. “We use those to clean the river,” she says, pointing to rafts made out of recycled plastic soft drink bottles. (On our way home from this interview, we saw an actual person cleaning the river while on the raft. That’s recycling in action.)
RIVER CLEANUP: (From left) Zapote River, Molino River and Las Piñas River
The Zapote River Drive is 20 kilometers long. The Las Piñas River Drive is 10 kilometers and Molino River Drive is 10 kilometer for a total of 40 kilometers (the Pasig River Drive is 25 kilometers long) — a result of CAV’s focus and funds as a Senator. “We built the River Drive to give motorists an alternate route since Alabang-Zapote Road already has a big congestion problem,” she says. “The River Drive is used by people in a hurry, those who like driving beside the relaxing river, and those who have emergencies, like ambulances.”
Other roadways nearby, though, CAV and husband Mr. Manny Villar built using personal funds — which they let the public use. “Itong island na ‘to, between Molino River and Zapote River, it’s an island,” she says, pointing to the Farm House. “The two bridges connecting this island to Las Piñas, we built out of pocket; also because they connect directly to our land.”
One road outside the farm was also built by Mr. Villar, and vehicles are freely allowed to pass.
HISTORIC SITE. The Prinza Dam (also called the Molino Dam) was built in by San Ezekiel Moreno. Back then, Moreno was the parish priest of Las Piñas. He was beatified in 1975 and canonized in 1992.
It is not possible to talk about the river without highlighting the Prinza Dam, built by San Ezekiel Moreno in 1882. Back then, Moreno was the parish priest of Las Piñas. He was beatified in 1975 and canonized in 1992. Today, Prinza Dam provides water to the Farm School and Tourist Farm (plans of building the system to make the water potable for drinking are in the idea pipeline).
According to the Senate of the Philippines website, in 2005, the National Historical Commission of the Philippines (NHCP), recognized “the statue of St. Ezekiel Moreno and two historical markers in Molino Dam in Las Piñas and Bacoor City to commemorate the important contributions of the St. Moreno and the Molino dam in Las Piñas and Bacoor Cities’ colorful history.”
A museum honoring the saint is right beside the dam. The San Ezekiel Moreno Church built by Villar Foundation which CAV also heads, is about six kilometers away. It safekeeps two bone relics of San Ezekiel given by the Father General of Recoletos.
DAUGHTER, MOTHER, BUSINESSWOMAN, AND WIFE
CHILDLIKE EXCITEMENT: Sen. Cynthia A. Villar gets ready to go around the Villar Farm School and Tourist Farm with her team.
We often see CAV in television or official events in Senator mode — polished, strong, dignified. While she more or less maintains the same grace off-cam, we delved deeper into the facets people don’t see or know of.
Cynthia as a daughter
CAV is a true daughter of south Metro Manila: her mother is from Muntinlupa (Alabang), while her father is from Las Piñas.
“I’m so surprised that kids now normally have nannies,” CAV says, settling into her seat for our lunch. “Ako nung six years old ako, nakatira kami sa farm. It was one kilometer from Muntinlupa Elementary School.”
CAV grew up in a farming family, her parents running a poultry farm and rice mill when she was a child. Her father, Filemon Aguilar, was a long-time mayor of Las Piñas and congressman. “Alam mo, naglalakad kami — six years old ako — one kilometer from our farm to the school,” she recalls. “Kalahati ng nilalakaran ko walang bahay kasi rice field.”
She adds with a laugh, “Sabi nga ng nanay ko, ‘Pag may kumausap sayo ‘wag mong sasagutin, tumakbo ka na baka kidnapin ka’.” Her mother was Lydia Ampaya.
“Nanay ko ayaw ako bigyan 10 centavos para sumakay sa jeep,” CAV continues, waxing nostalgic. “But I appreciated that, kasi it taught me lessons in life.”
Cynthia as a mother
CAV is mother to three kids: Manuel Paolo who is following in his father’s footsteps as a businessman; Mark who is also serving in the Senate; and Camille who is serving as a Congresswoman. Having come from a comfortable but simple upbringing, CAV made sure that her children also led simple lives, no matter how successful the family business was.
“Mahigpit ako sa mga anak ko. I believe education is the most important thing,” CAV says, referring to her husband Manny who grew up poor in Tondo but attended the University of the Philippines where they both earned degrees in Business Administration.
“Kailangan ang anak ko well-educated kasi kahit na sila mapamanahan mo kung hindi sila well-educated at hindi sila magta-trabaho, mawawala din lahat, ‘di ba?”
“So ang first priority ko as a mother is the education of my children,” she adds. Both her boys pursued higher learning at Wharton, a prestigious business school in Philadelphia, Pennsylvania. Her daughter pursued hers at IESE in Barcelona, Spain.
Other than the importance of education, CAV taught her children the importance of prudence when it comes to money. “Ang turo ng nanay ko sa amin noong bata pa kami, ‘Pag kayo kumikita, mag-ipon kayo, kasi hindi kayo laging kikita. Pag kayo hindi nag-ipon at hindi na kayo kumikita, maghihirap kayo’,” she recalls.
Cynthia as a businesswoman
WASTE MANAGEMENT: (Clockwise from left) Waterlily weaving, Plastic Recycling Factory, Coconet Factory and Kitchen waste composting facility
CAV’s story and success as a businesswoman is tied to her husband’s, because they met and fell in love in college, and built their life and business together from there.
“Pinaghirapan namin ‘yan,” she begins, when asked about it. “We started our business as a gravel and sand business when we were 25, at naghirap kami diyan,” she says. “Two years nga kaming nakitira sa magulang ko para makatipid, para makaipon ng puhunan.” They moved to their own home also in Las Piñas in 1977, and it is their home until now — 48 years and counting.
Their business saw its beginnings as a small company, selling gravel and sand to companies building houses. “Nagde-deliver si Manny ng graba at buhangin sa mga nagtatayo ng bahay, nakita nya na madali palang magtayo ng bahay,” she shares.”So nagsimula siyang magtayo ng bahay.”
Once they started doing this, in a year, they had managed to build 90 houses. From their earnings, they built their first Camella development that would be Camella I and II. They also started this in the south. After six developments, they began developing nationwide.
When asked about the secret to their success, CAV goes back to the basics: hard work. “Kami ni Manny, alam mo noong kami’y nag-ge-gravel and sand, pitong taon akong nag-pabaon sa truck namin, kasi nagtitipid kami sa salary kasi gusto naming makaipon to build a business,” she recalls.
Every business needs a capital, and aspiring entrepreneurs really need to save for their seed money and investment. “So talagang si Manny ang nagbebenta, siya ang kumukuha ng order tsaka naniningil. Ako ang nag-papabaon sa truck, early in the morning and late at night.”
Cynthia as a wife
If you have ever come across the Villar husband and wife, it is easy to see that they are not just successful business partners, spouses, public servants, and grandparents. They are also — first and foremost — friends (who started as classmates and batchmates) for 49 years and counting.
“Siya ‘yung sa business, ako sa foundation,” CAV says matter-of-factly. “May sarili akong business, ‘yung mga asset na pinamana.May mall ako sa lupa niya.” She builds the establishments on land Mr. Villar owns, then he pays her rent. Now that’s a stellar business partnership arrangement, even for those who are not necessarily spouses but do business together.
At home, CAV and Mr. Villar are also as complementary as night and day. CAV loves detective stories and watches them on HBO, HBO Hits, and Cinemax. Her husband is a Netflix aficionado. “Magkahiwalay kami ng pinapanood. Magkaiba taste namin,” she says. They are both homebodies, though, who go out as part of the performance of their duty as public servants and community leaders.
CAV does not hesitate to admit, though, that — to this day — she is the one who makes their bed in the morning. This was a habit she formed as a child, with her sister whom she shared a bed with. “Itong si Manny, pagkagising eh iiwanan ang kama, ako magliligpit,” she retorts with a laugh. “Sabi ko ito parang hindi anak ng mahirap, hindi tinuruan. Ako magliligpit ng lahat ng kalat niya.”
Humor also plays a big part in their steadfast marriage. “Minsan tinatakot ko, ‘Manny, parang mahina ka nang lumakad’,” CAV says, laughing. “Daig ko nga si Manny eh, siya ang jogging nang jogging. Siguro napapagod sa jogging kaya pag hindi na nagjo-jogging, mahina na maglakad.”
A HEART FOR FARMERS AND FISHERMEN
PAMPERED CARABAOS. Sen. Cynthia A. Villar looks affectionately at the carabaos of the Villar Farm School. A visit to their shed is a highlight for many visitors of the farm, she says.
When speaking with CAV, it is very evident that when she speaks about farmers, fishermen, and sustainability, her eyes and entire face light up. When she was taking us around herFarm School and — on the other side of Nomo Road — her Tourist Farm, it was evident in her energy that she was happily (like a child) right at home.
CAV was brought up by farmers, after all. Her hope is that what she has started will continue and grow. The Philippines being an agricultural country, should be strong in this aspect. This is central to her work as a Senator, but this road paved with good intentions is not spared from misunderstanding and bad politicking.
“The poorest people in the Philippines are the farmers and the fishermen. If you want to do poverty reduction, you do it through agriculture,” CAV says. “This is why our family is all about poverty reduction — also because Manny came from a poor background.”
The Villar Farm School
Villar Farm School
CAV was among those who supported the passing of Republic Act No. 10816 or the Farm Tourism Development Act of 2016. It mandated that a farm school be established in every town in the Philippines. It was lost on its intended beneficiaries though, which were the farmers and farm owners. So CAV decided to put her own.
“Yung pinag-aaralan sa college, BS Agriculture ‘yun.Ito vocational lang ‘to para sa mga farmers,” she says. “Kinausap ko si Manny, kasi ito gagawin niya dapat na subdivision. ‘Wag na lang, gagawin kong farm school. So I started this in 2016.”
The Farm School offers farmers free courses in partnership with other agencies. According to the senate.gov.ph website, they are:
Farm Business School with the Agricultural Training Institute
Rice Seeds Production and Mechanization with PhilRice and PhilMech
Aquaculture Production with the Bureau of Fisheries and Aquatic Resources
Livestock Production with the Bureau of Animal Industry
Cacao production intercropping with coconut with the Philippine Coconut Authority
The property where it sits surrounded by beautiful nedra trees features a rice farm, vegetable farm, aquaculture, a dairy farm with 50 carabaos, a coconut and cacao farm, a forage farm, and a dormitory for the students aside from the earthy all-kawayan classroom.
The Rice Tariffication Law
A conversation with CAV would not be complete without bringing up Republic Act 11203, also called the Rice Tarification Law (RTL) which she authored. In an article on the Department of Agriculture website, then Finance Secretary Carlos Dominguez said, “The law opened up the rice market, imposed tariff on imported rice, created the Rice Competitiveness Enhancement Fund and lowered the price of the commodity in the market for the benefit of the general population.”
It was met with mixed feelings, though, which CAV is well aware of.
“Ang umaayaw diyan ‘yung mga middleman. Kasi sa provision na ‘yan, i-e-empower ang mga farmers,” she says. “Eh ang mga farmers dito sa Pilipinas maliliit. Kaya ginagawa ko, magtayo kayo ng co-op, tapos tutulungan ng co-op ang farmers.”
“Ang mga farmers, hindi mo pwedeng bigyan ng machinery, ang liliit (ng lupa), two hectares. Eh milyon ang halaga ng machinery,” CAV continues. “It has to be given to a group of farmers, kaya magko-co-op.”
She says this co-op model for farming is utilized in other countries. Their government, in turn, supports the co-op — a more streamlined approach. “Tinutulungan ng gobyernoang co-op para ma-mechanize sila at matuto sila. Binibigyan sila ng milling and drying para ang product nila rice, hindi na palay, at deretso na sila sa supermarket.”
According to CAV, when we implemented land reform and two hectares of land were given to farmers, it was too small an ownership for them to then afford buying machines of their own. They would end up selling their land and then farming for someone else. “Walang economies of scale ‘yun. Ang gusto natin, mag-co-op sila para may economies of scale, oo.Hindi ‘yung ipagbibili nila lupa nila uli sa mga landowner, hindi,” she says.
For CAV, this is the best way to help farmers and their families, so their children will not decide to work abroad instead of farming. This would cause the Philippines to lose crucial food security. “Kung hindi natin mapro-produce ‘yung pagkain natin, kawawa tayo,” she says.
It begs to be said that CAV created the Rice Competitiveness Enhancement Fund and the financial assistance to rice farmers owning five hectares and below, which are 1.6 million Filipino farmers.
She also gave funds to the Technical Education And Skills Development Authority (TESDA) and Agricultural Development Institute (ADI) to train farmers when it comes to inbred seeds. Then there were the funds given to Landbank to be loaned to farmers.
“We discovered na ‘yung mga farmers, hindi marunong umutang sa mga bangko kasi mga small farmers lang sila,” she shares. “So sabi ko sa Landbank pautangin niyo ‘yung co-op, at sila ‘yung magpautang sa mga farmers.”
As the saying goes, one cannot please everybody. There will always be detractors waiting for a reason to attack. To them, CAV has a clear response: “I will just do what I have to do. I don’t care if I am misunderstood, if that’s the right thing.”
THE NON-POLITICAL POLITICIAN
Seafarers vaccination
“I always tell the truth, so ayoko talaga ng politics,” says CAV as she takes a cookie she tells us was a gift from a friend. Hours spent with her at her Farm House, Farm School, and Tourist Farm (which has a Children’s Farm with a zipline, playground, and horseback riding facilities) allowed us to see all her sides — from her demeanor as a Senator to when she let her walls down and we saw her as simply Cynthia.
For all the years of public service she and her family have rendered, what is she most proud of? “Syempre, ‘yung Daang Hari. Without that, ang hirap to connect to Cavite,” CAV answers quickly.
From left: MBV widening of CAA Bridge, CAV road improvement San Isidro Subdivision Brgy. Pamplona 1 and Road rehabilitation Doña Paz Brgy. Pulanglupa 2
Daang Hari is also known as the Las Piñas–Muntinlupa–Laguna–Cavite Link Road, dubbed “collector road” because it links southern Metro Manila to Cavite. According to Internet sources, it was “built as part of then-Senator Manny Villar’s initiative to decongest traffic in southern Metro Manila.” Daang Hari was inaugurated on Dec. 13, 2003.
From left: MAV road and drainage Tramo — this covers Barangay Zapote to Manuyo 1, Dear Joe Bridge and Onelia Jose Bridge
At 73, CAV thinks about retirement, yes, but not about stopping from helping others. “Nag-iipon ako ng income para pag ako’y retired na,may income pa rin akong maipamimigay sa mga tao,” she says thoughtfully.
“It pays na [maging] mahusay na tao. I don’t care if they misunderstand me, basta alam kong tama ang ginagawa ko, I’ll do it.”
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A dragon dance is performed inside a mall in Caloocan City, Feb. 10. — PHILIPPINE STAR/EDD GUMBAN
THE PHILIPPINES is projected to be the second-fastest growing economy in Southeast Asia this year and in 2025 as domestic demand is expected to remain resilient, according to Moody’s Ratings.
“We have kept unchanged our 2024 and 2025 forecasts for the Philippines and Malaysia and also expect sequentially higher growth in both countries. Domestic demand remains the primary economic growth engine for the Philippines,” it said in a report.
Moody’s Ratings kept its forecast for gross domestic product (GDP) growth for the Philippines at 5.9% this year and 6% in 2025.
However, these projections fall short of the government’s growth targets of 6.5-7.5% for this year and 6.5-8% for next year.
At 5.9%, the Philippines has the second-fastest projected growth in Southeast Asia for 2024, after Vietnam (6%). It is ahead of Indonesia (5%), Malaysia (4.5%) and Thailand (2.8%).
For 2025, the Philippines is again expected to post the second-fastest growth behind Vietnam (6.5%) but ahead of Indonesia (5%), Malaysia (4.8%), and Thailand (3%).
Moody’s Ratings said that growth in domestic demand-driven countries like the Philippines is “increasing more than we previously expected.”
The economy grew by a weaker-than-expected 5.6% in 2023, slower than the 7.6% expansion in 2022 and short of the 6-7% government goal.
Household consumption typically accounts for three-fourths of the Philippine economy. Last year, household spending expanded by 5.6%, much slower than 8.3% in 2022.
Meanwhile, Moody’s Ratings sees inflation averaging 3.8% this year, higher than the Bangko Sentral ng Pilipinas’ (BSP) 3.6% full-year forecast but within the 2-4% target.
For 2025, it sees inflation easing to 3.3%, a tad higher than the 3.2% central bank forecast.
“Inflation picked up in February in most Asian economies on higher food prices, with the exception of Malaysia,” Moody’s Ratings said.
Inflation picked up to 3.4% in February, the first time it quickened in five months. Inflation could have accelerated further to 3.8% in March, according to the median estimate yielded in a BusinessWorld poll of 17 analysts.
However, rice prices may continue to rise amid supply issues.
“Rice inflation continues to accelerate with higher import prices and the persistent lack of effective supply-side responses. But the risk is limited of food inflation broadening to core inflation because we do not expect a continued increase in food prices,” it added.
In February, rice inflation surged to 23.7% or its fastest pace since the 24.6% recorded in the same month in 2009.
Meanwhile, Moody’s Ratings said that central banks in Asia are unlikely to begin policy easing before the US Federal Reserve.
“Asian central banks are maintaining tight monetary policies to preserve financial and foreign exchange stability, and appear unwilling to start cutting policy rates before the Fed,” it said.
The BSP kept its benchmark rate steady at a near 17-year high of 6.5% for a third straight meeting in February. It raised borrowing costs by 450 basis points (bps) from May 2022 to October 2023.
The Monetary Board will hold its next policy meeting on April 8.
Markets expect the BSP to begin cutting rates by midyear, in step with the Fed.
However, BSP Governor Eli M. Remolona, Jr. has said that while they “closely” watch the US central bank’s moves, its own monetary decisions are not dependent on the Fed.
“The resulting pressures on growth, leveraged economic sectors, or both, could eventually push Asian central banks to begin cutting rates even in a Fed-on-hold scenario and letting foreign exchange rates weaken in the process,” Moody’s Ratings said.
“There could also be implications on capital inflows and outflows. Such policy pivots could be delayed through calibrated fiscal support or other macroprudential measures, however,” it added. — Luisa Maria Jacinta C. Jocson
MAJORITY of Philippine businesses are looking to invest more in Southeast Asia, particularly Singapore and Thailand. Photo shows shoppers in a shopping mall on Orchard Road in Singapore, Dec. 23, 2022. — REUTERS
By Luisa Maria Jacinta C. Jocson, Reporter
PHILIPPINE BUSINESSES are keen on ramping up investments in the Association of Southeast Asian Nations (ASEAN) region this year, according to a survey by Hongkong and Shanghai Banking Corp. (HSBC).
“More than two-thirds of businesses in the Philippines plan to invest more in ASEAN. That compares to 61% that are adding to their investments elsewhere,” it said.
The report surveyed companies with annual revenues of at least $150 million from Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.
“Businesses are planning to enter new ASEAN markets, expand into new business lines and invest in technology,” it added.
Almost three-fourths or 72% of the Philippine respondents plan to invest in the expansion into new markets in the region, followed by expansion into new business lines (58%), technology and digitalization (57%), sustainability (57%) and research and development (55%).
“Expansion into new ASEAN markets ranks as the top priority for businesses in the Philippines, ahead of improving customer experience,” the report said.
Majority of Philippine firms (90%) reported that they were confident about growing their businesses in Singapore and Thailand, followed by the Philippines itself (86%), Indonesia (82%), Malaysia and Vietnam (75% each).
“Some 85% expect intra-ASEAN trade to increase in 2024, with 39% expecting an increase of greater than 30%,” it added.
Meanwhile, HSBC data also showed that 41% of businesses cited macroeconomic uncertainties as the top barrier to entering the region, followed by rapidly changing regulations (31%), supply chain challenges (30%), and local technological capabilities (26%).
“The survey also found that macroeconomic uncertainty and the rapidly shifting regulatory and policy landscape are the top barriers for businesses in the Philippines looking to expand into new ASEAN markets, underlining the importance of advice and support from a banking partner,” it added.
Meanwhile, HSBC announced it launched its ASEAN Growth Fund worth $1 billion (around P56 billion) to help support the region’s growing digital economy.
“With a working population that is digitally native, increasing in size, and poised to consume more goods and services — especially on e-commerce — ASEAN has so much potential for growth,” HSBC Head of Commercial Banking for South and Southeast Asia Amanda Murphy said in a separate statement.
“We are delighted to launch our first-of-its-kind ASEAN Growth Fund and work with digital companies as they expand in the region and beyond,” she added.
The fund will be used to lend to companies that are “scaling up through digital platforms across Southeast Asia.”
“It supports new economy names, more established corporates, and nonbank financial institutions by assessing operating metrics tied to their cashflow-generative asset portfolio, rather than relying solely on traditional financial metrics,” it added.
HSBC Philippines Head of Wholesale Banking Mimi Concha said that the fund will help support new economy companies in the Philippines.
The Philippines’ digital economy is forecast to reach between $80 billion and $150 billion in gross merchandise value by 2030, according to Google, Temasek Holdings and Bain & Company.
THE PHILIPPINE government is looking to address right-of-way issues hounding its infrastructure projects. — PHILIPPINE STAR/EDD GUMBAN
By Kyle Aristophere T. Atienza, Reporter
THE MARCOS administration has created an interagency panel to fast-track the acquisition of land for national railway projects, as Philippine infrastructure plans continue to be hounded by right-of-way (RoW) issues.
Under Administrative Order No. 19, which was signed on March 25, the Inter-Agency Committee for Right-of-Way Activities for National Railway Projects will “study and devise an efficient and collaborative mechanism to streamline the process of land acquisition necessary for the implementation of all railway projects.”
The panel will be chaired by the secretary of the Department of Transportation (DoTr) and co-chaired by the secretary of the Department of Human Settlements and Urban Development.
Members of the committee include the departments of Interior and Local Government, Social Welfare, Environment, Finance, Budget, and Justice, as well as the Office of the Solicitor General.
The Philippine National Railway (PNR), the committee’s secretariat, is directed to provide administrative and technical support to the body.
The committee will submit to the President a bi-annual report on the status of RoW activities for ongoing railway projects. It will also take the lead in coordinating railway policies and programs among government agencies.
The panel will ensure “effective completion” of programs related to land acquisition and other right-of-way activities such as livelihood programs, income restoration, and resettlement. It may also act on issues or complaints raised to the body.
Terry L. Ridon, convenor of think tank InfraWatchPH, said the new committee could skip necessary social preparations as the Presidential Commission for the Urban Poor (PCUP) was not included as a member.
“Conspicuously absent among the member-agencies is the PCUP, which is the lead agency for social preparation activities of urban poor communities affected by infrastructure projects such as railways,” he said in a Facebook Messenger.
“Without PCUP having a seat at such a high-level committee, the government may be blindsided on the direct sentiments of urban communities affected by railway projects,” he added.
The DoTr in a statement said the new committee is a “huge lift” for the Philippine railway sector.
“It will help us bring back the glory days of the Philippine railway system.”
The government’s infrastructure projects have been hampered by RoW issues that have delayed their completion.
Transport Secretary Jaime J. Bautista said in early March RoW issues are threatening the 2029 deadline for the completion of the 33-kilometer Metro Manila Subway Project.
While the construction of the subway tunnels began in January 2023, Mr. Bautista said last month the government had yet to secure 45% of the RoW.
The Marcos administration’s priority infrastructure projects for the transport sector also include the North-South Commuter Railway System, Mindanao Railway Project, and Philippine National Railway South Long Haul.
A 2016 law authorizes the government to acquire real property needed as RoW sites or for any National Government infrastructure project through donation, negotiated sale, expropriation, or any other mode of acquisition.
Randy P. Tuaño, dean of the Ateneo de Manila University School of Government, said the government should have included representatives from the private sector and civil society groups in the committee “so that issues raised by these sectors could be discussed.”
All concerned agencies and instrumentalities of the National Government, including state corporations and local government units, have been directed to support the order’s implementation.
SOLAR PANELS are seen at an office in San Rafael, Bulacan, Sept. 23, 2023. — PHILIPPINE STAR/EDD GUMBAN
AROUND P1.9 trillion worth of projects, mostly in renewable energy (RE), have been approved to go through the “green lane” system as of April 1, the Department of Trade and Industry (DTI) said on Tuesday.
In a statement on Tuesday, Trade Secretary and Board of Investments (BoI) Chairman Alfredo E. Pascual said that 59 projects worth P1.9 trillion have been endorsed to the BoI’s one-stop action center for strategic investments that was established last year.
The government had established the “green lane” in all government agencies in order to speed up the approval and registration process for priority or strategic investments.
“Of the 59 projects, 51 are under the RE sector, involving investments totaling P1.57 trillion. The remaining projects are in the digital infrastructure, manufacturing, and food security sectors,” Mr. Pascual said.
Investments in renewable energy projects increased after the Philippine government allowed full foreign ownership in the sector starting November 2022.
Foreign nationals and foreign-owned entities are now allowed to explore, develop and use RE resources such as solar, wind, biomass, ocean or tidal energy in the Philippines. Foreign ownership of RE projects was previously limited to 40%.
Also endorsed to the green lane were four digital infrastructure projects worth P302.16 billion, two food security projects worth P29.61 billion, and two manufacturing projects worth P3.4 billion.
The projects endorsed to receive green lane treatment in the first quarter alone account for P1.4 trillion of the total investments.
Green lanes for strategic investments were created through Executive Order (EO) No. 18, which was signed by President Ferdinand R. Marcos, Jr. last year, to address “investor pain points.”
To be eligible for endorsement, the project must be a strategic investment outlined in the Philippine Development Plan or similar national development plan.
“This whole-of-government approach tackles the bureaucratic hurdles across different agencies, specifically targeting clean energy, infrastructure, green metals, electric vehicles, and pharmaceutical industries,” Mr. Pascual said.
He said that the government must continue to expedite the approval of permits for RE projects in order to meet the target of 35% RE share in the country’s power generation mix by 2030.
Meanwhile, the DTI, together with the Department of Finance, led the ceremonial awarding of green lane certifications to two hydroelectric power projects with a total output capacity of 2,000 megawatts (MW).
The two projects — the 1,400 MW Pakil Pumped Storage Hydroelectric Power project in Laguna and the 600 MW Wawa Pumped Storage 1 Hydroelectric Power project in Rizal — are under Razon-led Prime Infrastructure Capital, Inc.
“These projects’ exceptional capacity and reliability make them crucial players in the Philippines’ transition to a clean energy future,” Mr. Pascual said.
In a separate release, Finance chief Ralph G. Recto said that the two projects will help in the realization of the Philippines’ ambitious goal of increasing the share of RE in its power generation mix to up to 50% by 2040.
Slated to be one of the largest pumped storage power plants in Asia, the P296.99-billion Pakil project will be developed by Prime Infra’s subsidiary Ahunan Power, Inc. The P143.91-billion Wawa project will be developed by another subsidiary, Olympia Violago Water Power, Inc.
The two projects are expected to be operational in 2030.
“In our energy portfolio, we are strategically aggressive in the pumped storage space, given the critical role these projects will play in enabling government transition commitment,” said Prime Infra Chairman Enrique K. Razon, Jr.
“Given the complexity of these projects, the green lane endorsement of DTI and BoI will significantly assist Prime Infra and its subsidiaries in expediting the execution of these initiatives,” he added. — Justine Irish D. Tabile
PHILIPPINESHARESperformed well in the first quarter (Q1) but might face challenges ahead due to higher inflation and interest rates, according to analysts.
“(Local markets) performed well across many metrics,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message on Tuesday.
“The index is up more than 7% year to date and has gained more than 16% from its 52-week low. Foreign funds are steadily flowing back, with net foreign buying exceeding P10 billion compared with the P27.4-billion net foreign selling in the first quarter of 2023. It is also good to see that the rally is broad based as around 54% of stocks are trading higher year to date,” he said.
On March 27, the Philippine Stock Exchange index (PSEi) ended at 6,903.53, up by 7.03% year to date. Philippine financial markets were closed for Maundy Thursday and Good Friday.
The PSEi fell by 0.27% or 19.38 points ending at 6,960.43, while the broader all shares index dropped by 0.26% or 9.69 points closing at 3,626.71 on Tuesday.
The local bourse was resilient in the first quarter but could have performed better, AB Capital Securities, Inc. Vice-President Jovis L. Vistan said in a Viber message.
“This sentiment stems from the promising economic growth forecasts for the Philippines. Despite these optimistic projections, it appears we may have fallen short in comparison,” he said.
For his part, Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said the market rallied in the first two months of 2024 but lost momentum by March.
“In March, the rally lost steam. Mounting upside risks to inflation from the impact of El Niño on our agricultural sector, to rising oil and energy prices dampened sentiment. Consequently, Bangko Sentral ng Pilipinas (BSP) rate cut hopes were also tempered, which in turn weighed on the market. As a result, the market posted losses in March,” he said in a Viber message.
“By March’s close, the market is trading at a price-to-earnings ratio of 14x, below its last five years’ average of 18.2x. This is also below its peers’ average of 18.2x. This shows that the market is still at attractive levels. However, our inflation and interest rate outlook remains as a key risk to the market’s movement moving forward,” he added.
The inflation figure for March will be released by the Philippine Statistics Authority on April 5.
Philippine inflation accelerated to 3.4% in February from 2.8% the prior month due to higher food prices.
Mr. Tantiangco also expressed cautious optimism regarding the market’s trajectory in the coming quarters.
“I’m optimistic since from a fundamental standpoint, our corporate sector remains robust with many still deemed to be undervalued. However, I’m also cautious given the key risks at play namely inflation and interest rates,” he said.
“Inflation exceeds and is sustained above the government’s 2%-4% target again, there’s the possibility that the BSP’s monetary easing would be delayed. This would lead to soured sentiment, which in turn could make it hard for the market to rise further,” he added.
Mr. Vistan said that one concern for the local stock market is the country’s susceptibility to “inflation-related shocks.”
“The Philippines faces potential impacts stemming from volatile oil prices and agricultural commodities such as rice. These factors introduce an element of unpredictability, posing challenges for sustained market stability and growth,” he said.
Mr. Colet noted that the local market’s average daily turnover is still lagging compared to last year, with the year-to-date daily average value turnover at P6.03 billion as of March 27th.
“One market statistic that is lagging is the average daily value turnover, which is still lower than the P7.7 billion in the same period last year. This relatively low value turnover tells us that there are still a lot of funds that have not returned to the local equity market, perhaps because the debt market continues to offer attractive yields,” Mr. Colet said.
“There is a silver lining here. Once policy rates start falling and equities re-rate, then we may see a boost in value turnover that could support a sustainable market rally,” he added.
The BSP kept the key rate at 6.5% — the highest in nearly 17 years — for a third straight meeting in February.
“Overbought PSEi large caps and hawkish local monetary policy stance could stoke PSEi volatility in April, opening up buying window toward renewed market attempts to reach 7,000 as inflation continues to stay mid-target in the first quarter and corporate earnings show momentum,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message.
Meanwhile, Mr. Vistan said the local bourse could end on a strong note in 2024 if the BSP eases interest rates.
“The pivotal juncture emerges around midyear when the base effect on inflation reaches its peak severity… should we manage to look beyond it and witness the BSP easing monetary policies, we can anticipate finishing the year on a strong note, fostering heightened optimism for 2025,” he said.
Mr. Colet said the market is consolidating after trading resumed following the Holy Week break.
“After failing to close above 7,000 in early March, the market is now in consolidation mode, a pattern that may persist in the second quarter until inflation concerns abate and there is more confidence on the timing of interest rate cuts,” he said.
With over 700 franchise brands and other business opportunities, Franchise Asia Philippines Expo 2024 offers visitors a one-stop shop of a variety of franchise investment packages and business solutions. From established brands to emerging concepts, expo visitors will have the chance to explore a diverse array of options across numerous sectors.
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