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Philippines’ Marcos says reported presence of Russian submarine ‘very worrisome’

President Ferdinand R. Marcos, Jr. speaks at an event with the Filipino community in Washington, D.C., May 1, 2023. — KRIZ JOHN ROSALES/PPA POOL

MANILA – President Ferdinand Marcos Jr. said on Monday the reported presence of a Russian submarine in the Philippine’s exclusive economic zone (EEZ) in the South China Sea was “very worrisome”.

The Philippine Daily Inquirer newspaper reported on Monday that a Russian attack submarine surfaced inside Manila’s EEZ last week, citing security sources.

“That’s very concerning. Any intrusion into the West Philippine Sea, of our EEZ, of our baselines, is very worrisome,” Marcos told reporters.

Marcos did not elaborate on the submarine’s reported presence, saying he would let the military discuss the matter.

Reuters could not immediately confirm the report. A Philippine Navy spokesperson did not immediately respond to a request for comment. Russia’s embassy in Manila could not immediately be reach for comment.

China and Russia declared a “no limits” partnership when President Vladimir Putin visited Beijing in 2022, just days before Russia’s invasion of Ukraine. The two countries carried out live-fire naval exercises in the South China Sea in July.

Tensions between Manila and Beijing have escalated over the past year due to overlapping claims in the South China Sea. A 2016 arbitral tribunal ruled China’s historical claims to the disputed waterway had no basis, a decision Beijing rejects. — Reuters

China’s November factory activity growth hits 5-month high, Caixin PMI shows

REUTERS

BEIJING – China’s factory activity expanded at the fastest pace in five months in November as new orders, including those from abroad, led to a solid rise in production, pushing manufacturers’ optimism degree to an eight-month high, a private-sector survey showed on Monday.

The reading largely echoed an official survey on Saturday, which showed manufacturing activity expanded modestly, suggesting a blitz of stimulus is finally trickling through the world’s second-largest economy just as Donald Trump ramps up his trade threats.

The Caixin/S&P Global manufacturing PMI rose to 51.5 in November from 50.3 the previous month, the highest since June and beating analysts’ forecasts in a Reuters poll of 50.5.

New orders placed with Chinese manufacturers increased at the fastest rate since Feb. 2023.

New export orders, in particular, rose for the first time in four months and marked the highest in seven months. The orders mainly rose in the investment and intermediate goods segments and fell fractionally for consumer goods makers.

Anecdotal evidence revealed that better underlying demand, new product launches and stockpiling following the U.S. election were among the reasons for the rise in new work.

President-elect Trump last week pledged an additional 10% tariff on imports from China. He had previously threatened to end China’s most-favoured-nation trading status and slap tariffs on Chinese imports in excess of 60% – much higher than those imposed during his first term.

China’s commerce ministry said Beijing’s position against unilateral tariff hikes is consistent, and “imposing arbitrary tariffs on trading partners will not solve America’s own problems.”
As Chinese firms signalled hopes that better economic conditions and government policies can support sales in the year ahead, the level of their confidence hit the highest since March, the Caixin survey showed.

Despite a second successive month of accumulation of backlogged work, firms remained cautious about hiring, though the rate of job shedding eased from October.

“While the economic downturn appears to be bottoming out, it needs further consolidation,” said Wang Zhe, economist at Caixin Insight Group.

Citing the continued contraction of employment, Wang said it indicated the effect of economic stimulus is yet to be felt in the labour market, and businesses’ confidence in expanding their workforce needs to be strengthened.

Cost concerns also rose as average input prices increased at the fastest pace in five months with rising raw material costs. In turn, firms passed additional cost burdens to clients, leading to the quickest growth in selling prices since October 2023.

As a deep property downturn and tepid domestic demand weigh on economic growth momentum, government advisers are recommending Beijing maintain an economic growth target of around 5.0% for 2025, Reuters reported previously. Markets expect stronger fiscal stimulus to mitigate the impact of expected U.S. tariff hikes on Chinese exports. — Reuters

Trudeau promised Trump tougher border controls, says top Canada official

PRIME MINISTER JUSTIN TRUDEAU — REUTERS

OTTAWA – Canadian Prime Minister Justin Trudeau promised President-elect Donald Trump that Canada would toughen controls over the long undefended joint border, a senior Canadian official said on Sunday.

Trudeau flew to Florida on Friday to have dinner with Trump, who has promised to slap tariffs on Canadian imports unless Ottawa prevents migrants and drugs from crossing the frontier.

Canada sends 75% of all goods and services exports to the United States and tariffs would badly hurt the economy.

Public Safety Minister Dominic LeBlanc, who sat at the head table with Trudeau and Trump, said the two men discussed additional security measures Canada would be introducing.

“We’re going to look to procure, for example, additional drones, additional police helicopters, we’re going to redeploy personnel … we believe that the border is secure,” he told the Canadian Broadcasting Corp.

“It’s important, I think, to show Canadians and the Americans that we’re stepping up in a visible and muscular way, and that’s exactly what we’re going to do,” he added, promising more details in the days and weeks to come.

Canada, he said, would continue to make the case that tariffs would damage both nations, given how interconnected the two economies are.

“I’m confident that the Americans will understand that it’s not in their interest … to proceed in this way,” he said, describing the dinner meeting as very warm and cordial.

Trump said on Saturday he discussed the border, trade and energy in a “very productive” meeting with Trudeau.

The friendly nature of the dinner contrasts with previous exchanges between the two men.

Trump called Trudeau “a far left lunatic” in 2022 for requiring truck drivers crossing the border to be vaccinated against COVID. In June 2018, Trump walked out of a G7 summit in Quebec and blasted Trudeau for being “very dishonest and weak.”

At the end of the dinner, LeBlanc said, Trump walked Trudeau to his car and said “Keep in touch. Call me anytime. Talk soon.” — Reuters

Countries fail to reach agreement in UN plastic talks

PHILIPPINE STAR/EDD GUMBAN

BUSAN, South Korea – Countries negotiating a global treaty to curb plastic pollution failed to reach agreement on Monday, with more than 100 nations wanting to cap production while a handful of oil-producers were prepared only to target plastic waste.

The fifth U.N. Intergovernmental Negotiating Committee (INC-5) meeting intended to yield a legally binding global treaty in Busan, South Korea, was meant to be the final one.

However, countries remained far apart on the basic scope of a treaty and could agree only to postpone key decisions and resume talks, dubbed INC 5.2, to a later date.

“It is clear that there is still persisting divergence,” said Inger Andersen, executive director of the U.N. Environment Programme.

The most divisive issues included capping plastic production, managing plastic products and chemicals of concern, and financing to help developing countries implement the treaty.

An option proposed by Panama, backed by more than 100 countries, would have created a path for a global plastic production reduction target, while another proposal did not include production caps.

The fault lines were apparent in a revised document released on Sunday by the meeting’s chair Luis Vayas Valdivieso, which may form the basis of a treaty, but remained riddled with options on the most sensitive issues.

“A treaty that … only relies on voluntary measures would not be acceptable,” said Juliet Kabera, director general of Rwanda’s Environment Management Authority.

“It is time we take it seriously and negotiate a treaty that is fit for purpose and not built to fail.”

A small number of petrochemical-producing nations, such as Saudi Arabia, have strongly opposed efforts to reduce plastic production and have tried to use procedural tactics to delay negotiations.

“There was never any consensus,” said Saudi Arabian delegate Abdulrahman Al Gwaiz. “There are a couple of articles that somehow seem to make it (into the document) despite our continued insistence that they are not within the scope.”

China, the United States, India, South Korea and Saudi Arabia were the top five primary polymer-producing nations in 2023, according to data provider Eunomia.

ENTRENCHED DIVISIONS
Had such divisions been overcome, the treaty would have been one of the most significant deals relating to environmental protection since the 2015 Paris Agreement.

The postponement comes just days after the turbulent conclusion of the COP29 summit in Baku, Azerbaijan.

At Baku, countries set a new global target for mobilizing $300 billion annually in climate finance, a deal deemed woefully insufficient by small island states and many developing countries.

The climate talks were also slowed by procedural maneuvers by Saudi Arabia – who objected to the inclusion of language that reaffirmed a previous commitment to transition away from fossil fuels.

Some negotiators said a few countries held the proceedings hostage, avoiding compromises needed by using the U.N.’s consensus process.

Senegal’s National Delegate Cheikh Ndiaye Sylla called it “a big mistake” to exclude voting during the entire negotiations, an agreement made last year during the second round of talks in Paris.

“This outcome underscores the complexity of addressing plastic pollution on a global scale and the need for further deliberations to achieve an effective, inclusive and workable treaty,” said Chris Jahn, council secretary of the International Council of Chemical Associations (ICCA), representing plastic makers.

“There is little assurance that the next INC will succeed where INC-5 did not,” environmental group GAIA said.

Plastic production is on track to triple by 2050, and microplastics have been found in the air, fresh produce and even human breast milk.

Chemicals found to be of concern in plastics include more than 3,200 according to a 2023 U.N. Environment Programme report, which said women and children were particularly susceptible to their toxicity.

Despite the postponement, several negotiators expressed urgency to get back into talks.

“Every day of delay is a day against humanity. Postponing negotiations does not postpone the crisis,” said Panama’s delegation head Juan Carlos Monterrey Gomez on Sunday.

“When we reconvene, the stakes will be higher.” — Reuters

Volkswagen workers to go on warning strikes across Germany

Volkswagen AG's headquarters / Credit: Volkswagen AG

BERLIN – Volkswagen workers will go on warning strikes on Monday at plants across Germany, labour union IG Metall said, marking the first large-scale walkouts at Volkswagen’s domestic operations since 2018.

The start of the strikes represents a further escalation of a dispute between Europe’s top carmaker and its workers over mass layoffs, pay cuts and possible plant closures – drastic measures the company says it cannot rule out in the face of Chinese competition and cooling consumer demand.

Labour representatives at VW had on Nov. 22 voted for limited strikes at German operations from early December after talks over wages and plant closures failed to achieve a breakthrough.
“If necessary, this will be the toughest collective bargaining battle Volkswagen has ever seen,” IG Metall negotiator Thorsten Groeger said in a statement.

The carmaker said it continues to rely on constructive dialogue to find a sustainable solution.

“Volkswagen respects the right of employees to take part in a warning strike,” a spokesperson said in reply to the union’s announcement, adding that the company had taken steps in advance to ensure a basic level of supplies to customers and minimize the impact of the strike.

Warning strikes in Germany usually last from a few hours.

The union had last week proposed measures it said would save 1.5 billion euros ($1.6 billion), including forgoing bonuses for 2025 and 2026, which Europe’s top carmaker dismissed.

Volkswagen has demanded a 10% wage cut, arguing it needs to slash costs and boost profit to defend market share in the face of cheap competition from China and a drop in European car demand.

The company is threatening to close plants in Germany for the first time in its 87-year history.

“Volkswagen has set fire to our collective agreements and instead of extinguishing this fire in three collective bargaining sessions, the management board is throwing open barrels of petrol into it,” Groeger said.

An agreement not to stage walkouts had ended on Saturday, IG Metall said, enabling workers to carry out warning strikes from Sunday across VW AG’s German plants.

“Warning strikes will start at all plants from Monday. How long and how intensive this confrontation needs to be is Volkswagen’s responsibility at the negotiating table,” Groeger said.

Labour representatives and management will meet again on Dec. 9 to carry on negotiations over a new labour agreement for workers at the German business – VW AG – with unions vowing to resist any proposals that do not provide a long-term plan for every VW plant. — Reuters

Inflation picked up in Nov. — poll

Inflation may have slightly accelerated in November. — PHILIPPINE STAR/EDD GUMBAN

By Luisa Maria Jacinta C. Jocson, Reporter

HEADLINE INFLATION may have picked up in November as prices of key food items rose due to the impact of several typhoons, analysts said.

A BusinessWorld poll of 15 analysts conducted last week yielded a median estimate of 2.5% for the November consumer price index (CPI), within the central bank’s 2.2% to 3% forecast for the month.

If realized, the November print would be slightly faster than the 2.3% clip in October but slower than 4.1% in the same month a year ago.

Analysts’ November inflation rate estimates

The Philippine Statistics Authority is scheduled to release November inflation data on Dec. 5.

“For November, we are expecting inflation growth at 2.5%. It is a slight uptick that highlights the impact of the several typhoons in October to November, affecting vegetable prices, causing broad food inflation to slightly climb,” Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, Inc., said.

In November alone, several storms hit the Philippines. The Philippines saw six typhoons entering its Area of Responsibility during the month, according to the Philippine Atmospheric, Geophysical, and Astronomical Services Administration.

Latest data from the Agriculture department showed that agricultural damage due to tropical cyclones Nika, Ofel and Pepito reached P785.68 million.

“We expect November’s inflation rate to rise slightly to 2.5% from October’s 2.3% print, driven in part by supply challenges caused by bad weather,” Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said.

“Weekly data on vegetable prices appear to have been affected by typhoons as month-on-month increases rose faster than October’s,” he added.

The Department of Agriculture (DA) last month said it expects prices of lowland vegetables to remain elevated as storm damage affected production.

Vegetable prices typically increase about 10-15% immediately after typhoons, the DA said.

Sarah Tan, an economist from Moody’s Analytics, likewise said that food inflation will be a significant factor behind the expected acceleration in the November print, largely due to the inclement weather.

“Among them, destruction to rice crops was most severe as the country’s largest rice-producing regions, Cagayan Valley and Central Luzon, were heavily impacted by the rain and landfalls,” Ms. Tan said.

“As domestic rice production shrank, rice imports are expected to have increased to fill that gap. Even with the lower rice tariffs, retail prices for rice would have moved higher,” she added.

Chinabank Research also noted that upward price pressures stemmed from higher prices of key food items such as fish, meat and eggs.

ENERGY, PESO
“Adding to the pain, utility providers upped the electricity rates in November from the prior month as they passed through some of the higher generation charges to consumers,” Ms. Tan said.

Manila Electric Co. also raised the overall rate by P0.4274 per kilowatt-hour (kWh) to P11.8569 per kWh in November from P11.4295 per kWh in October.

Ms. Tan also cited higher fuel prices during the month.

In November, pump price adjustments stood at a net increase of P1.70 a liter for gasoline, P3.20 a liter for diesel and P1.60 a liter for kerosene.

“Local pump prices rose in November, as recent events threatened oil supply in the global market,” Metropolitan Bank & Trust Co. (Metrobank) said.

Security Bank Vice-President and Research Division Head Angelo B. Taningco also noted the impact of the recent peso depreciation.

The peso sank to the P59-per-dollar level twice during the month, hitting the record low on Nov. 21 and 26.

“The non-negligible depreciation of the peso in November may have also added to inflationary pressures this month,” Mr. Neri added.

For the remaining months of the year, inflation will likely remain within the 2-4% target band, analysts said, but flagged potential risks to this outlook.

“Despite the upside pressure from the string of typhoons and geopolitical tensions, inflation will still remain within the BSP’s target range of 2-4% for the rest of the year,” Metrobank said.

Chinabank Research said inflation will remain within the BSP’s target band, barring any unexpected shocks. However, it noted adverse weather conditions may pose a risk to food prices.

The central bank expects inflation to average 3.1% this year. In the first 10 months, headline inflation averaged 3.3%.

“Inflation will likely remain manageable in the next six months, supported by the slower increase in rice prices and stable commodity prices amid the economic slowdown in major economies like China,” Mr. Neri said.

“However, we also see risks that could push inflation higher, such as weather disturbances and potential for further depreciation of the peso,” he added.

EASING TO CONTINUE
With inflation expected to remain within target, the central bank will also likely to continue its rate-cutting cycle, analysts said.

“I still think the BSP will stay on their schedule of cuts as inflation is seen to settle within their targets,” Oikonomia Advisory & Research, Inc. economist Reinielle Matt Erece said.

Pantheon Chief Emerging Asia Economist Miguel Chanco said that the weaker-than-expected gross domestic product (GDP) growth in the third quarter will also make the case for further rate cuts.

“I doubt the coming inflation print will be material for the BSP’s meeting (in December), which is likely to be dominated more by the weaker-than-expected third-quarter GDP print, which we think will persuade the Monetary Board to ease by a further 25 basis points (bps) next month,” he said.

The economy grew by an annual 5.2% in the July-to-September period, slowing from the revised 6.4% growth in the second quarter and 6% a year ago.

This was also the weakest growth in five quarters or since the 4.3% expansion in the second quarter in 2023.

“While GDP growth for the third quarter has been underwhelming, it might be difficult to hit our 2024 target of at least 6%. This may prompt the BSP to resume its rate cutting to give the economy a boost for growth,” Mr. Erece added.

Mr. Taningco said he expects the BSP to cut rates by another 25 bps in December as “inflation remains manageable.”

“With 2024 average inflation at near mid-target, the likelihood of another 25-bp cut in the Monetary Board’s December meeting is high because of price pressures being still manageable compared to its assessment in its previous October meeting,” Mr. Asuncion said.

BSP Governor Eli M. Remolona, Jr. earlier said that the Monetary Board could reduce or keep rates steady at its Dec. 19 meeting, its last policy review for the year.

For 2025, Sun Life Investment Management and Trust Corp. economist Patrick M. Ella expects up to 100 bps worth of rate cuts.

“We expect 100 bps next year (based on our model), but we are open to see a small likelihood of a rate pause in the first quarter on condition if the Fed also takes a pause on rate cuts. Otherwise, we see the BSP not interrupting their rate-cutting cycle for 2025,” he said.

Mr. Remolona also earlier said the Monetary Board could deliver rate reductions in the ballpark of 100 bps, but noted this would not necessarily be every meeting.

“The tandem of goal-consistent inflation and sub-target growth leaves enough room for the BSP to deliver another 25-bp cut in their last meeting in December and deliver an additional 75 bps worth of cuts in 2025 to support growth,” Metrobank said.

On the other hand, analysts cited risks that could cause the BSP’s easing cycle to go off schedule.

Mr. Neri said the Monetary Board’s decisions could depend on the peso’s behavior in the weeks to come.

“The currency has been under pressure recently, reflecting market adjustments to Federal Reserve rate cut expectations driven by the anticipated inflationary impact of Donald Trump’s economic policies as well as Fed Chair [Jerome] Powell’s comments downplaying the urgency of rate cuts,” he said.

The central bank could opt to keep rates steady if the Fed does not continue cutting rates or if the peso breaches the P60-per-dollar level, Mr. Neri added.

“Persistent upside pressure on inflation could drive the BSP to re-evaluate the pace of its easing cycle,” Metrobank said.

Mr. Asuncion also noted the probability of a “hawkish pause” as the BSP earlier said the balance of risks to the inflation outlook for next year until 2026 has shifted to the upside.

Hot money outflows reach $529.7 million in October — central bank data

Sheets five-dollar bills are seen through a magnifying glass at the Bureau of Engraving and Printing in Washington March 26, 2015. —REUTERS

MORE SHORT-TERM foreign investments flowed out of the Philippines than what entered in October, data from the Bangko Sentral ng Pilipinas (BSP) showed.

Transactions on foreign investments registered with the central bank through authorized banks posted a net outflow of $529.68 million in October, higher than the $328.19-million outflow in the same month a year ago.

This was also a reversal of the $1.03-billion net inflow in September.

These foreign portfolio investments are also called “hot money” due to the ease by which these funds enter and leave the economy.

Central bank data showed gross outflows of hot money increased by 56.7% to $2.01 billion in October from $1.28 billion a year ago. It also jumped by 33.4% from the $1.5-billion outflows in September.

“The US remains to be the top destination of outflows, receiving $889.06 million (or 44.2%) of total outward remittances,” the BSP said.

Meanwhile, gross inflows rose by 55.1% to $1.48 billion from $954.38 million in the same month a year prior. Month on month, gross inflows declined by 41.5% from $2.53 billion.

The top five investor economies during the month were the United Kingdom, Singapore, the United States, Luxembourg and Malaysia, accounting for the bulk or 87.8% of foreign portfolio investment inflows.

Most of the investments (54.5%) went to Philippine Stock Exchange-listed securities in banks; holding firms; transportation services; property; and food, beverage and tobacco. The rest (45.5%) went to peso government securities.

In the January-October period, BSP-registered foreign investments yielded a net inflow of $2.49 billion, a turnaround from the $715.43-million outflow in the same period in 2023.

Broken down, gross inflows stood at $15.02 billion, while gross outflows amounted to $12.52 billion in the first 10 months.

The BSP expects foreign portfolio investments to yield a net inflow of $4.2 billion in 2024.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said more hot money exited the country as geopolitical risks in the Middle East triggered profit taking in global and local markets.

“Regional geopolitical tensions and local economic risks, such as fiscal consolidation and concerns over growth momentum, have likely added to investors’ cautious stance,” John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies said.

Markets were also pricing in Donald J. Trump’s win ahead of the US presidential elections last November, Mr. Ricafort said. Mr. Trump’s protectionist policies were expected to stoke US inflation and impact the US Federal Reserve’s easing cycle.

“The Fed’s monetary policy stance likely weighed on investor sentiment. While expectations of easing US policy rates could eventually attract funds, the current cautious environment contributed to capital outflows,” Mr. Rivera said.

For the coming months, Mr. Ricafort said more short-term capital could enter the country amid the recent cut in banks’ reserve requirement ratio (RRR).

The BSP reduced the RRR for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 250 basis points to 7% from 9.5%, effective on Oct. 25.

“(This) would have infused about P400 billion into the banking system in terms of more loanable funds by banks, as well as more funds by banks for investments in bonds and other fixed-income investments, stocks, foreign currencies, property and other investments,” he added.

The country’s improved credit rating outlook will also support investor sentiment, Mr. Ricafort said.

Last week, S&P Global Ratings affirmed the Philippines’ investment grade rating on Tuesday and raised its outlook to “positive” from “stable,” reflecting the country’s strong growth potential and improved institutional strength. — Luisa Maria Jacinta C. Jocson

Government borrowings slump in October

PHILSTAR FILE PHOTO

By Aubrey Rose A. Inosante, Reporter

THE NATIONAL GOVERNMENT’S (NG) gross borrowings fell in October as it borrowed significantly less from the domestic market, the Bureau of the Treasury (BTr) said.

Data from the BTr showed that total gross borrowings dropped by 42.6% to P129.26 billion in October from P225.2 billion in the same month a year ago.

Month on month, gross borrowings declined by 64.8% from P367.18 billion in September.

Gross domestic borrowings slumped by 61.37% to P67.46 billion in October from P174.63 billion last year. The October 2023 tally reflected the government’s P71.78-billion retail onshore dollar bond issuance.

In October this year, domestic borrowings consisted of P45 billion in fixed-rate Treasury bonds (T-bonds) and P22.46 billion in Treasury bills (T-bills).

Meanwhile, gross external debt increased by 22.21% to P61.8 billion in October from P50.57 billion a year ago.

This consisted of P49.89 billion in program loans and P11.91 billion in project loans.

“(The lower gross borrowings) could be partly brought by the budget surplus in October 2024 and the narrower budget deficit for the first 10 months of 2024 that fundamentally reduced the need for additional borrowings/debt by the National Government,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

In October, the NG posted a P6.3-billion budget surplus, a turnaround from the P34.4-billion deficit in the same month a year ago. This brought the 10-month budget deficit to P963.9 billion, slimming from P1.02 trillion gap a year ago.

“Furthermore, increased dividends/remittance of earnings/surplus of some GOCCs [government-owned or -controlled corporations] to the National Government in recent months also partly helped reduce the need for the NG to borrow,” Mr. Ricafort said.

As of October 2024, 52 GOCCs already remitted P95.9 billion in dividends, up 51% higher from the same period last year, the Department of Finance said last week.

“It is possible that the decline in the October borrowing is due to the fact that there are expectations that interest rates would decline further and some banks and investment houses have been undertaking a wait-and-see attitude before purchasing government securities,” Philip Arnold “Randy” P. Tuaño, dean of the Ateneo School of Government, told BusinessWorld via e-mail over the weekend.

The BSP has cut benchmark rates by a total of 50 basis points at its August and October meetings.

TEN-MONTH PERIOD
Meanwhile, BTr reported that gross borrowings in the January-to-October period jumped 22.98% to P2.43 trillion from P1.98 trillion a year ago.

The bulk or 76.69% of the 10-month gross borrowings were from domestic sources.

Domestic debt stood at P1.86 trillion, a 22.64% increase from P1.52 trillion a year ago.

It was made up of P1.07 trillion in fixed-rate T-bonds, P584.86 billion in retail T-bonds, and P209.38 billion in T-bills.

External debt in the first 10 months rose by 24.09% to P566.25 billion from P456.31 billion a year prior.

This was composed of P256.24 billion in global bonds, P223.04 billion in program loans, and P86.97 billion in new project loans.

For the rest of the year, Mr. Tuaño said that borrowings are still expected to increase in peso value terms as the budget deficit continues to widen.

The Treasury is possibly waiting for interest rates to decline further and thus limited sales of government securities in October, he added.

The Monetary Board could deliver another rate cut either at its December meeting or the meeting after, Bangko Sentral ng Pilipinas Governor Eli M. Remolona, Jr. said earlier.

“Going forward, lower US and local rate cuts would help reduce the NG’s interest payments/debt servicing costs, thereby would reduce the need for additional NG borrowings,” Mr. Ricafort said.

This year’s borrowing plan is set at P2.57 trillion, with P1.92 trillion coming from domestic sources and P646.08 billion from overseas, according to the latest Budget of Expenditures and Sources of Financing data.

GoTyme Bank, Uno Digital Bank, Packworks bag top honors at KMC Startup Awards 2024

GoTyme Bank receives Startup of the Year Award from KMC Startup Awards. From right: Great Deals E-Commerce Corp. Founder and CEO Steve Sy, Jenelyn Bajacan of GoTyme Bank’s Customer Service Group, GoTyme Bank Head of Corporate Communications and External Relations Frederick Blancas, Khecelyn Rayo, also of GoTyme Bank’s Customer Service Group, and KMC Solutions Co-Founder Michael McCullough

By Bjorn Biel M. Beltran, Special Features and Content Assistant Editor

KMC Solutions, business services experts and the largest provider of flexible office space in the Philippines, held the second KMC Startup Awards gala night on Nov. 15, 2024 — with fintech startups GoTyme Bank, Uno Digital Bank, and micro-business platform Packworks taking home top recognitions.

The KMC Startup Awards 2024 highlighted the remarkable achievements and innovations of the Philippines’ most dynamic startups this year, spotlighting their contributions across industries that have redefined excellence in entrepreneurship, technology, and sustainability.

In collaboration with the Philippine Startup Week, QBO Innovation Hub, Kaya Founders, WEB3 PH, PowerMac Center, and Uniquecorn Strategies, the event also provides a platform to foster connection, mentorship, and inspiration within the startup community.

The KMC Startup Awards spotlight pioneering ideas and forward-thinking entrepreneurs shaping the Philippine economy. This year’s competition received over 300 entries from over 100 startups nationwide, culminating in 30 finalists awarded gold, silver, and bronze distinctions across 10 categories.

The Gokongwei-led GoTyme Bank emerged as a standout, clinching the prestigious Startup of the Year Gold Award while also earning accolades for Innovation in Marketing and as a Growth Champion, underscoring its transformative impact on the fintech landscape.

Packworks, another startup powerhouse, demonstrated its versatility with wins in the Tech Innovator and Social Impact categories, in addition to a Bronze finish as Startup of the Year. Meanwhile, UNO Digital Bank secured Silver in the Startup of the Year category, reflecting its rapid ascent in the digital banking sector.

In visionary leadership, Bing Tan, co-founder and CEO of Packworks, took home Gold as Emerging Leader of the Year, with Rafael Jouwena of Cocotel International and Dr. Rica Cruz of Unprude also recognized for their dynamic leadership styles. These leaders exemplify the innovative spirit propelling the Philippine startup ecosystem forward.

Focusing on empowering micro-businesses like sari-sari stores, Packworks’ platform empowers over 300,000 entrepreneurs nationwide by digitizing their daily operations with tools for pricing, inventory management, and sales tracking. Partner stores also can access working capital loans and exclusive discounts from partner FMCG brands and companies.

With over 20 years of experience in the tech space, Mr. Tan has been the driving force behind Packworks alongside co-founders Hubert Yap and Ibba Bernardo. Throughout his career, Mr. Tan has been driven to create a positive impact on society through technology and has also been committed to helping other startups and fostering innovation across the tech industry and beyond.

“We wanted to create a model built around inclusion — to uplift lives and empower the sari-sari stores we work with, not replace them. We dedicate this award to all the sari-sari stores,” Mr. Tan said in his acceptance speech.

“These achievements are a testament to how our mission resonates with business leaders and peers in the startup ecosystem, validating our efforts to empower grassroots businesses and drive innovation in e-commerce and retail. At Packworks, we remain committed to uplifting sari-sari stores and shaping the future of hyperlocal retail through technology and inclusion.”

Other notable winners include Sprout Solutions, which earned Gold for Customer Excellence, and Mylo Speech Buddy, which shone in multiple categories, taking home Gold for Social Impact, Silver for Innovative Product of the Year, and Bronze for Best Newcomer Award.

Sustainability and social responsibility also took center stage, with Mober Technology, Inc. claiming the Sustainability Award Gold, while Adobokashi Systems, Inc. (Pic-A-Talk AAC) rounded out the Social Impact Award honorees with its innovative contributions.

By operating a fleet composed entirely of EVs, Mober has made significant strides in promoting sustainability through its innovative commercial EV logistics solutions. The startup has since become a business-to-business (B2B) platform facilitating sustainable delivery for some of the Philippines’ retail giants such as IKEA Philippines, SM Appliance Center, Nestle Philippines, and Nespresso, as well as renowned logistics companies Maersk and Kuehne+Nagel.

“These recognitions are a testament to our relentless drive to innovate and lead the logistics industry toward a sustainable future. At Mober, we believe growth and sustainability go hand in hand, inspiring us to work even harder toward a greener Philippines and beyond,” Mober Founder and CEO Dennis Ng said.

Reflecting on their own company’s journey, Michael McCullough, co-founder of KMC Solutions, said, “This event holds a special place for us because we’ve been in their shoes — it wasn’t too long ago that KMC was a startup figuring out how to turn big ideas into reality.”

“While we’ve grown, we’ve kept that agile mindset, constantly creating solutions to make it easier for businesses to navigate complexity and scale. Seeing these startups bring their visions to life is a powerful reminder of the magic that happens when great ideas meet determination.”

Endeavor Philippines celebrates decade of entrepreneurial impact

L-R: Bela Gupta D’Souza, founder and CEO of edamama; Judge Calimbahin, head of Entrepreneur Experience at Endeavor Philippines; Anthony Huang, president of SSI Group; Manny Ayala, co-founder and managing director of Endeavor Philippines; and Kimberly Yao, co-founder and group CEO of CloudEats

By Mhicole A. Moral, Special Features and Content Writer

Endeavor Philippines commemorates 10 years of driving high-impact entrepreneurship in the country with the release of its 2024 Impact Report, themed “10 Years of Multiplier Effect,” which focuses on creating an entrepreneurial ecosystem that empowers visionary founders, and builds a culture of innovation and collaboration.

According to the report, the Multiplier Effect is a principle that demonstrates how the growth of one entrepreneur can catalyze innovation and opportunity for others. Through mentorship, investment, and inspiration, high-impact entrepreneurs not only scale their ventures but also empower emerging founders to follow suit.

Endeavor’s “pay-it-forward” culture also amplifies individual success and drives collective progress that will further create a compounding impact across the Philippine economy.

Since its establishment in 2015, Endeavor Philippines has supported 46 entrepreneurs across 33 companies in key industries such as fintech, e-commerce, and logistics. This ecosystem has generated over $900 million in revenue, more than 66,000 jobs created, and $1 billion in capital raised in 2023 alone.

“At Endeavor, we’re not just supporting individual entrepreneurs; we’re building a chain reaction that reshapes industries and empowers entire communities. Each founder we back is a catalyst for innovation and opportunity, multiplying their success by mentoring, investing, and paving the way for others,” said Endeavor Philippines Managing Director Manny Ayala.

“Our goal isn’t just growth — it’s enduring transformation, driven by entrepreneurs who will continue to elevate the Philippine economy long after Endeavor’s work with them is done,” he added.

Empowering impactful leaders and companies

Endeavor’s 2024 Impact Report spotlights the success of entrepreneurs from innovative companies like Angkas, BillEase, CloudEats, Coins.ph, edamama, Kalibrr, and Kumu. Such stories from these entrepreneurs reflect Endeavor’s Multiplier Effect to guide the next wave of Filipino entrepreneurs.

One inspiring example is Steve Sy, co-founder of Great Deals, who credits Endeavor for helping him scale his company into the Philippines’ leading e-distributor. Today, Mr. Sy mentors over 60 founders, sharing his knowledge through faith-based programs that bridge tech and non-tech industries.

“Endeavor has been instrumental in my journey — providing the mentorship, network, and resources that helped me scale Great Deals into the top e-distributor in the Philippines. Supporting others as they navigate their own paths to success is incredibly fulfilling, and it feels meaningful to carry forward the support that Endeavor extended to me,” Mr. Sy explained.

Similarly, edamama founder and CEO Bela Gupta D’Souza noted the importance of Endeavor’s “pay-it-forward” culture to inspire a new wave of nation-builders: “What Endeavour brings to the table is that they’re really coming at this from the perspective of trying to make you the best version of an entrepreneur. There are some amazing companies that support startups today; and so, that will really inspire the next generation of entrepreneurs that the country could really benefit from.”

From impact to legacy
Endeavor’s success can also be credited to its Endeavor Catalyst fund, a rules-based co-investment vehicle that invests in Endeavor Entrepreneurs’ companies.

With over $500 million in assets under management (AUM) and investments in 57 unicorns across 35 markets, Catalyst provides financial backing to scale high-growth startups. It also sustains Endeavor’s operations, ensuring the organization continues to thrive globally and locally.

Endeavor Philippines plans to scale its impact even further by focusing on global leadership that positions Filipino entrepreneurs at the forefront of addressing global challenges; an inclusive ecosystem that ensures accessible opportunities, mentorship, and capital for all entrepreneurs; and instilling a cycle of growth where every success story inspires the next generation.

“The next chapter of our journey is where we will take the bold leaps necessary to catalyze the Philippine ecosystem for generations to come,” said Anthony “Anton” Huang, president of SSI Group and board member of Endeavor Philippines. “If Endeavor 1.0 was about scaling up high-impact entrepreneurs, Endeavor 2.0 would be about going beyond individual growth and fully transforming our ecosystem. Our vision for the next decade is ambitious but achievable ,and focuses on creating a true multiplier effect where success doesn’t just add up, it multiplies.”

Secrets to content creation unveiled in YGG Play Summit 2024

From left: YGG CEO Gabby Dizon with Base and Coinbase Wallet Head Jesse Pollak during one of the sessions at the YGG Play Summit

Week-long event showcases Web3 gaming tournaments, innovations

By Jomarc Angelo M. Corpuz, Special Features and Content Writer

Some of the biggest names in the Web3 gaming community shared their secrets to becoming recognizable content creators at the Yield Guild Games (YGG) Play Summit’s “Industry Day” on Nov. 20 at the SM Aura, Taguig City.

In a forum themed “Harnessing the Superpower of Audience,” Forbes Web3 Gaming Creator of the Year “Yellow Panther” suggested that consistency and persistence are essential in building a strong presence online.

“You may have to post over 100 times before seeing any results, but you have to keep posting. Keep improving video by video slowly, and that’s how you’ll be able to improve over time. You have to just keep showing up daily,” he said.

Meanwhile, Wolves DAO Marketing Director Sam Steffanina, who has generated more than five billion views across social media, noted that understanding your audience’s desires and tailoring content to meet those needs is key to content creation.

“Look at what’s working but also ask yourself, ‘What do I wish I could find whenever I’m scrolling and going through social media?’, and then try your best to create it. It’s hard, but if you just keep the mindset for a year or two, you’ll eventually figure it out,” Mr. Steffanina emphasized.

Parallel TCG Ambassador and content creator Alexandra “Alliestraza” Macpherson highlighted the importance of genuine enthusiasm which resonates with the gaming community.

“People are willing to give support if you are passionate about the game and you’re excited. It starts small until one time you post something and it gets hundreds of thousands of views,” Ms. Macpherson said.

‘Future of Work’ and onchain guilds

YGG CEO Gabby Dizon also discussed how technologies could change the future of work and highlighted one of the guild’s newest features “Future of Work (FoW),” a new program to provide its community with decentralized earning opportunities across the broader Web3 ecosystem.

“Earlier this year, we started a division in YGG called ‘Future of Work.’ It’s practically doing different tasks that could earn you crypto as a group that is outside of gaming. Things like data labeling, DePIN (decentralized physical infrastructure networks), and many more,” Mr. Dizon said.

Additionally, in a fireside chat with Emfarsis Director Leah Callon-Butler, during the YGG Play Summit Industry Day, Mr. Dizon revealed that YGG’s new Onchain Guilds feature will be built on top of the Base network.

Onchain Guilds enable guilds to establish and maintain their reputation through verifiable blockchain records of their work and accomplishments with added security from Ethereum and advantages in the Base platform.

These guilds operate within a blockchain, a decentralized network commonly associated with cryptocurrencies, and allow individuals to collaborate digitally based on their professions or business interests.

“I see guilds very much as the small to medium enterprises (SME) of the Internet, not just of Web3,” Mr. Dizon said. “These are people who are gathered together, and what makes Web3 special is the ability to own assets as a group.”

Tournament winners

Several Web3 game tournaments were also played during the summit with winners of each competition taking home cash prizes.

Kadiliman Esports triumphed over Sylphy Academy during the finals of the summit’s Indus tournament securing the grand prize of $2,500. Indus is a mobile battle royale game developed by SuperGaming on iOS and Android.

Arena of Faith, a multiplayer online battle arena (MOBA) game from Super Esports and Vortex Labs, also held a tournament during the summit with SylphyT1 of Sylphy Academy emerging victorious and winning $4,000.

In addition, the Anichess tournament at the summit wrapped up with player “johnfdong” emerging as champion and taking home $3,000 in prize money. Anichess, launched by Animoca Brands, integrates elements of magic into the classic game of chess.

Colombian YGG Esports player Zeliaser walked away with $20,000 after winning the Parallel TCG tournament at the summit. Parallel is a trading card game developed by Parallel Studios utilizing play-and-earn features.

CREATE MORE roadshow to pitch investors next year

JCOMP-FREEPIK

SECRETARY Frederick D. Go, the special assistant to the President for investment, said a roadshow is being planned next year for the US, Japan, South Korea, and the European Union upon completion of the implementing rules and regulations (IRR) of the amended Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. Mr. Go said in a statement over the weekend that the roadshow aims to highlight the advantages of the CREATE to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.

“The Board of Investments, together with the investment promotion agencies, is organizing a roadshow to all the countries that have great interest in investing in the Philippines,” according to Mr. Go, who heads the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA).

According to OSAPIEA, the US delegation at the third Luzon Economic Corridor (LEC) Steering Committee held last month proposed the roadshow showcasing CREATE MORE.

“The IRR is expected to be completed by February. We’re waiting for the IRR before we do that roadshow,” Mr. Go said.

On Nov. 11, President Ferdinand R. Marcos, Jr. signed into law the CREATE MORE Act, which further reduces the corporate income tax to 20% from 25% for registered business enterprises.

The signing of the law boosted the LEC initiative, which attracted attention from the country’s trilateral partners: the US and Japan, OSAPIEA said.

“During the 3rd LEC Steering Committee meeting, representatives from both countries expressed their interest in the potential of this new investment-inducing law to attract greater participation and investments from like-minded nations and the private sector,” OSAPIEA said.

“The US delegation highlighted the CREATE MORE Act as a pivotal tool for enhancing investment opportunities within the LEC framework,” it added. — Justine Irish D. Tabile

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