Bank of England taps influencers in quest to reach Gen Z

October 8, 2024 | 12:01 am

HOURS after cutting interest rates for the first time in four years, Andrew Bailey, 65, made his debut on TikTok.

It was a cautious foray for the Bank of England (BoE) governor into a social media platform known for dance battles and lip-syncing. Rather than attempt any such physical feats, Mr. Bailey got out of his comfort zone by sitting down with a personal finance influencer to explain monetary policy to a younger generation increasingly suspicious of central banking. He even abandoned his omnipresent jacket and tie to project a looser, approachable vibe.

“I read all these articles about Taylor Swift’s impact and say, ‘Yeah, it’s interesting, but it’s not the big story,’” Mr. Bailey told his interviewer, Abigail Foster, dropping a name sure to resonate with the kids while discussing the BoE’s fight to contain rising prices. (Splurging Swifties may have made that job harder when the Eras Tour rolled through Britain this summer.)

The interview is part of an evolution in the way the 330-year-old central bank — founded to fund William III’s wars in France — is trying to communicate with Generation Z, which reads few newspapers and financial news wires. While hardly a viral hit, Bailey’s video got over 42,000 views on TikTok and almost 3,000 likes on Instagram.

In recent months, the Old Lady of Threadneedle Street has enlisted influencers to expand its audience, amassing more Instagram followers than the European Central Bank. The BoE similarly featured dancing show stars Curtis and AJ Pritchard in a video to launch the new King Charles bank notes earlier this year.

Such outreach is important not only because of changing news consumption habits, but the BoE’s new, more challenging relationship with the public. While older generations might remember the world’s central bankers rushing to the rescue during financial crises past, the recent inflation shock prompted the BoE and its peers to dramatically ramp up borrowing costs, putting mortgages and car loans increasingly out of reach.

“The cost-of-living crisis significantly increased young people’s interest,” said Mr. Foster, the 30-year-old certified public accountant who interviewed Mr. Bailey. Younger people can “feel quite disconnected from financial institutions,” she said, pointing to widespread misinformation online about personal finance.

Besides posting regular social media videos explaining student loans, pension plans and investment savings accounts, Mr. Foster also founded and runs Elent, which teaches finance workshops in schools and offices.

Overall, public confidence in the bank plunged as prices soared, with the youngest age groups being the most dissatisfied with the BoE’s performance, according to its latest inflation attitudes survey. At the same time, political figures, such as former Prime Minister Liz Truss, have grown more vocal in blaming the BoE for Britain’s ills.

Online, theories circulate about how central bankers’ policies are exacerbating inequality or that their planned digital currencies are intended to control people’s behavior. The BoE is at a risk of losing touch with a growing segment of consumers at a time when interest rate decisions are reaching deep into the lives of Britons.

Still, the bank must tread carefully when a single adjective by a key policy maker can make markets swoon. Asked to discuss its social media strategy, the BoE acknowledged that it is bolstering efforts to reach the young.

“We think it’s important for the bank to explain what we do and why to as broad an audience as possible,” a BoE spokesperson said in a statement. “That’s why we’ve been increasing our efforts to reach people where they get their news and information.”

The BoE is somewhat late to the party. The BoE’s youth forum — a panel of 24 young people discussing how policy affects them — warned officials in 2022 that they needed to post their own content to counter misinformation. The bank’s latest annual report also flagged trends on social media as an “emerging risk” to its communications.

In addition to Mr. Bailey’s interview circulating on the likes of TikTok, the BoE has been regularly putting up posts and stories on an Instagram profile launched in March. It also has its own TikTok profile, though it is yet to post anything on the platform.

“It gives him the ability to be quite transparent about what’s going on behind the scenes of Bank of England,” Ms. Foster said on her interview with Bailey. “They can very quickly reach a broad audience almost instantaneously.”

It will be difficult for the BoE to avoid being drowned out by the torrent of content competing for the eyes of younger Britons online, where pranks and comedy sketches are more likely to go viral. The BoE has stepped up its online presence in the spring, but influencers have been explaining the bank’s policies to hundreds of thousands of viewers for years.

When searching for a explainer on the UK’s digital currency, one TikTok video that is featured prominently and has been viewed by more than half a million people spreads a conspiracy theory that the BoE will have full control over people’s money and invade users’ privacy. It also incorrectly claims that the central bank has released a CBDC, when a final decision on its launch is still yet to be made.

Another narrative that has gained traction online during the cost-of-living crisis is that the BoE’s policies worsened the inflation surge and helped widen inequality, contrary to the central bank’s messaging on these issues.

Some businesses have found success on social media platforms, such as EY and Deloitte, according to Anna Fishlock, head of digital at consultancy H/Advisors Maitland. She said that content that “lifts the lid,” and is contentious and humorous often does well on TikTok.

A number of central banks have already woken up to the problem of reaching young audiences. The Federal Reserve launched its Instagram profile last October with over 200,000 followers. While the European Central Bank has been posting on the platform since 2018, it has just over 80,000 followers, less than the BoE’s 92,000.

TikTok is owned by Chinese internet technology company ByteDance Ltd., while Instagram’s parent is Facebook owner Meta Platforms Inc.

There is a policy purpose to its foray into social media. Keeping inflation expectations under control is key for the central bank as it influences how people expect price changes to unfold in the future and stops wage demands surging.

“It’s fair to say that monetary policy would be more effective if more people were to understand the inflation target,” said Ashley Webb, UK economist at Capital Economics. “With more younger people consuming news via social media rather than more traditional news channels, perhaps the governor should record a few TikToks.” — Bloomberg

Aboitiz Construction bags contracts with APRI, Cemex Holdings

October 8, 2024 | 12:01 am

ABOITIZ Construction, Inc. has secured maintenance contracts with AP Renewables, Inc. (APRI), a geothermal energy producer, and Cemex Holdings Philippines, Inc., a cement manufacturer.

The construction company’s three-service agreement for APRI, which began in September, covers routine and outage maintenance works at the Makban Geothermal Power Plant in Bay and Calauan, Laguna, and Tiwi Geothermal Plant in Tiwi, Albay, Aboitiz Construction said in an e-mailed statement on Monday.

The contract also involves mechanical, electrical, instrumentation, and condition monitoring tasks.

APRI is a geothermal company under Aboitiz Power Corp.

Aboitiz Construction had provided manpower for maintenance at APRI’s Tiwi Geothermal Power Plant in Albay from June to August this year.

Meanwhile, Cemex extended its six-month contract with Aboitiz Construction until December this year for supplying technical manpower for the commissioning of Kiln Line 4 at its Antipolo City plant.

The commissioning activities include major equipment such as the vertical roller mill, kiln, clinker cooler, and dust collectors.

Currently, the Cemex project employs 200 personnel, with approximately 30% already sourced locally from Antipolo City.

“These projects affirm our ability to provide reliable maintenance solutions while prioritizing safety and quality of work,” said Aboitiz Construction Chief Operating Officer Ramez Sidhom.

Aboitiz Construction is the privately held construction company of the Aboitiz group.

It has over 40 years of track record in heavy industries, light industries, infrastructure, and industrial maintenance. — Revin Mikhael D. Ochave

2GO Group, DoT partner to upskill tourism frontliners

October 8, 2024 | 12:01 am

2GO Group, Inc., a transportation and logistics provider and subsidiary of the Sy-led company SM Investments Corp., has partnered with the Department of Tourism (DoT) to support the Filipino Brand of Service Excellence (FBSE) program.

The DoT’s flagship initiative aims to equip “frontliners in the tourism and hospitality industry with the skills to deliver service infused with the essence of Filipino warmth, thereby creating a distinct national brand,” 2GO Group said in a media release on Monday.

“2GO’s commitment to the Filipino Brand of Service Excellence Program is a testament to the industry’s dedication to elevating the standards of hospitality in the Philippines,” said Shahlimar Hofer Tamano, undersecretary for tourism regulation, coordination, and resource generation.

The company said it will be sending 14 participants to a “Train-The-Trainer” learning course conducted by the DoT.

“As we anticipate more travelers in the Philippines, aligning with the FBSE program allows us to contribute to a seamless Filipino hospitality experience for our passengers traveling from shore to shore,” said Frederic C. Dybuncio, president and chief executive officer of 2GO Group.

The training focuses on demonstrating and applying the “Mabuhay” and “Salamat Gestures,” among other culturally significant Filipino practices with a 2GO touch, within 2GO establishments.

“With plans to train 200 participants from various departments across different regions, 2GO is committed to reinforcing the importance of a brand that mirrors the rich heritage of Filipino hospitality,” the company said. — Aubrey Rose A. Inosante

Daniel Day-Lewis to come out of acting retirement for son’s film Anemone

October 8, 2024 | 12:01 am

LONDON — Three-time Oscar winning actor Daniel Day-Lewis is coming out of retirement to star in his son’s feature film directorial debut, Anemone.

The highly acclaimed performer, known for films such as Lincoln and Gangs of New York, will take on his first acting role since 2017’s Phantom Thread, for which he earned his sixth Academy Award nomination.

He co-wrote Anemone with his son, painter and filmmaker Ronan Day-Lewis. Production companies Focus Features and Plan B described the movie as exploring “relationships between fathers, sons and brothers, and the dynamics of familial bonds.”

“We could not be more excited to partner with a brilliant visual artist in Ronan Day-Lewis on his first feature film alongside Daniel Day-Lewis as his creative collaborator,” Focus Features Chairman Peter Kujawski said in a statement.

“They have written a truly exceptional script, and we look forward to bringing their shared vision to audiences alongside the team at Plan B.”

The film’s cast also includes actors Sean Bean, Samantha Morton, Samuel Bottomley, and Safia Oakley-Green.

Daniel Day-Lewis’ spokesperson announced his retirement from acting in 2017.

The 67-year-old, who holds dual British and Irish citizenship, is the only man to have won three best actor Oscars, which he picked up for his performances as a writer and painter born with cerebral palsy in My Left Foot, an oil prospector in There Will Be Blood, and portraying US President Abraham Lincoln in Lincoln. — Reuters

Why Europe is a useful ally in the WPS territorial disputes

October 8, 2024 | 12:01 am

South-China-West-Phl-sea-WPS — PHOTO FROM ARMED FORCES OF THE PHILIPPINES

Tensions between the Philippines and the People’s Republic of China remain high, with both countries continuing to skirmish and posture within the disputed territories in the West Philippine Sea (WPS). On Sept. 30, the Philippines held joint naval exercises alongside Australia, Japan, New Zealand, and the United States, under the auspices of Multilateral Maritime Cooperative Activity (MMCA). According to an Armed Forces of the Philippines spokesperson, the participating vessels were “tailed” by the Chinese navy. Although the incident did not result in any direct confrontations, it is evidence of the tense situation in the WPS.

The presence of ships from four other countries is a manifestation of the Philippines’ efforts at deepening security ties with its neighbors and traditional allies. This includes the signing of the Japan-Philippines Reciprocal Access Agreement (RAA), and the call to review the US-PH Mutual Defense Treaty (MDT).

Although the Philippines continues to rely on its allies in the Asia-Pacific region to boost its naval presence in the disputed territories, this column argues that the country should recognize and harness the diplomatic support the country receives from European states.

Europe may be geographically distant, and many of its states are focused on the Ukraine invasion, but the region continues to follow occurrences in the South China Sea. This is evident when one considers the public pronouncements of the European Union (EU) and its member states, such as Denmark, France, or Germany. It is also manifested in statements issued by non-EU countries, such as Norway and the United Kingdom. Since the 2016 decision by the Permanent Court of Arbitration in the Hague, which recognized the Philippine territorial claims in the WPS, European countries have expressed support for the Philippines against Chinese incursions into the disputed area. Of particular significance was a 2023 joint statement by EU and member state delegations in the Philippines recognizing the legitimacy of the arbitral award and emphasizing support for the freedoms of navigation and overflight, which are enshrined in the United Nations Convention on the Law of the SEA (UNCLOS).

Since the promulgation of the tribunal’s decision, skirmishes have continued in the disputed territories. Some noteworthy incidents include a Chinese vessel’s use of a military grade laser to blind Philippine sailors, which resulted in a diplomatic rebuke from Malacañang, as well as statements of opposition from the Swedish and Danish embassies in the Philippines. In March of this year, the Polish mission to the Philippines expressed its opposition to China’s ships blocking the movement of Philippine vessels, even using water cannons to deter them.

Although European actors’ statements may appear to be mere lip service, their statements are exercises of what International Relations scholars generally refer to as soft power. Such articulations may appear relatively ineffective compared to the sending of ships, as the US or Japan do, but they are ways to express opposition towards Chinese actions, and support for the Philippine position.

Apart from abstract articulations of support, however, recent developments have allowed for Europe to provide more material support to the Philippines. For example, the EU published its Strategy for Cooperation in the Indo-Pacific in 2023, which reconfigures the forms of cooperation between the 27-country bloc and countries, such as the Philippines. Initial results of this include the establishment of the EU-Philippines Subcommittee on Maritime Cooperation, the adoption of the EU-funded Indo-Pacific Regional Information Sharing (IORIS) Platform, and the provision of more crisis management exercises through the Critical Maritime Routes Indo-Pacific (Crimario) project. Each of these instruments deepen the EU’s involvement in the Sino-Philippine territorial dispute.

Beyond its engagements with the EU, the Philippines likewise has sought to strengthen its bilateral ties with individual European states and diversify its portfolio of security partners in responding to Chinese hegemonic ambitions. In this year alone, some of the agreements in the works include: 1.) a draft military interoperability agreement with France, 2.) the finalization of a defense cooperation pact with Germany, and, 3.) the signing of a security agreement with Sweden allowing the Philippines to procure fighter jets and Swedish-made defense equipment. Other initiatives from previous years include French participation in the “Balikatan” exercises, the deepening of defense cooperation with the Netherlands and Poland, and the visit of two German warships to the Philippines, among others.

Although efforts are underway to deepen European involvement in the Sino-Philippine territorial dispute, there is potential to build more areas of cooperation. The construction of a more robust security posture for the Philippines entails looking beyond our traditional allies in the Asia-Pacific region, and tapping into the potential for more consistent material European support. This is feasible considering the EU and individual European states’ records as reliable economic and security partners for the Philippines. Thus far, Europe has provided diplomatic support to the Philippine position in the territorial dispute, and there are nascent initiatives for deeper cooperation. However, these can be intensified further. The Philippine National Security Strategy can benefit from building upon its existing partnership with the EU and other European states.

Dr. Manuel R. Enverga III is the Jean Monnet chair and director of the European Studies Program at the Ateneo de Manila University. His teaching and research are focused on the areas of EU-Philippine relations, digital diplomacy, and global flows. He also hosts The Eurospeak Podcast, where he invites guests to talk about European influences on contemporary popular culture.

Vincent Carlo L. Legara currently works as a lecturer at the European Studies Program and at the Department of Political Science of the Ateneo de Manila University. He is also a junior political risk and security analyst for Polysentry.

Philippines lags in Global AI Index

October 8, 2024 | 12:00 am

The Philippines ranked the lowest in the region after placing 67^th out of 83 countries in its debut in The Global AI Index 2024 by Tortoise Media with an overall score of 5.89 out of 100. The index ranks countries based on capacity for artiﬁcial intelligence (AI) using 122 indicators under three pillars: implementation, innovation, and investment.

How PSEi member stocks performed — October 7, 2024

October 8, 2024 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Monday, October 7, 2024.

Gov’t revenue seen taking hit from House capital reform bill

October 7, 2024 | 9:34 pm

THE Department of Finance (DoF) said on Monday that the House of Representatives version of a capital markets reform bill could result in a P140 billion reduction in government revenue over four years, further limiting the fiscal space available.

Finance Assistant Secretary Karlo Fermin S. Adriano said the DoF is open to cutting stock transaction taxes to 0.1% from 0.6% and reducing the dividends tax rate for non-resident investors.

Nevertheless, he urged legislators to consider the DoF’s fourth package of the Comprehensive Tax Reform Program, adding that amendments contained in the House-proposed Capital Markets Efficiency Promotion Act (CMEPA) are already included in the DoF-submitted legislation. The DoF’s version, he said, could net about P10.76 billion.

“The DoF recognizes the intent of the proposed CMEPA, but we are already pursuing similar objectives through the Passive Income and Financial Intermediary Taxation Act (PIFITA),” he said in a Senate ways and means committee hearing.

“We are okay now with reducing the stock transaction tax from 0.6% to 0.1%… we are (also) okay with reducing the dividends particularly for non-residents, which is also covered by CMEPA,” he added.

CMEPA and PIFITA are among the legislative priorities outlined of President Ferdinand R. Marcos, Jr. for the 19^th Congress. The House approved both the bills on final reading while the Senate’s versions remain at the committee level.

“Given that currently we’re still in a tight fiscal position, we hope that we could push for Package 4 instead of CMEPA, especially that many of the capital market provisions in CMEPA are also found in Package 4,” Mr. Adriano said.

The DoF’s Package 4, formerly known as PIFITA, is seeking to levy a flat 20% tax rate on interest income, including savings deposits, treasury bonds and bills, and corporate bonds, among others, according to Mr. Adriano’s presentation to the tax panel.

The DoF’s fourth package also provides for a 5% gross receipts tax on banks, lending investors and other financial intermediaries’ lending and non-lending activities. It also proposes a 2% value-added tax (VAT) on health maintenance organizations and pension funds.

Taking note of the DoF’s position on the measure, Senator Sherwin T. Gatchalian, who heads the Senate ways and means committee, said the Legislative-Executive Development Advisory Council (LEDAC) is now pushing for capital market tax reforms instead of the more expansive PIFITA.

House Bill (HB) No. 9277, or the CMEPA measure, seeks to cut stock transaction tax to 0.1% from 0.6% currently. The measure also proposes to set the dividend tax rate for non-resident investors to 10% while removing the 7% gross receipts taxes on derivative gains by financial institutions.

It also reduced tax rates on lotto winnings above P10,000 to 10% from 20%. The House’s CMEPA version also exempted property insurance policies worth less than P100,000 from documentary stamp tax while levying a maximum P200 tax on policies more than P1 million.

The Senate’s version of CMEPA includes tax overhauls to “the debt sector, bonds and debentures… and also the entire insurance industry,” according to Mr. Gatchalian, citing their interconnectedness to capital markets.

The DoF is open to working with the capital market reforms bill, requesting that Congress tweak the tax measure to make it “revenue neutral,” Mr. Adriano said.

He noted the DoF tried adding tax provisions that would make CMEPA revenue-positive for the government. “We tried to insert provisions… basically giving us positive revenue, including the gross receipts tax on financial intermediaries and excise tax on pickup (trucks).”

“It’s still not enough to counter the revenue negative impact of CMEPA,” he added.

Mr. Gatchalian said the Senate version of the measure would only result in P78 billion in foregone revenue, with no reduction in tax rates for lotto ticket sales and an excise tax on pickup trucks. “We made some modifications in the last few weeks,” he added.

It would be easier for the Senate to pursue CMEPA as it’s a “smaller bill” compared to PIFITA, he said, citing the need to expedite deliberations on reforms to the capital markets and passive income tax structures before the chamber begins discussions on the proposed 2025 national budget.

“If you ask me personally, I would prefer discussing CMEPA in the next few months for two reasons: one, it’s an easier bill to discuss because the components are only few and interrelated… and second, we can easily pass a smaller bill compared to a bigger bill,” he said. — Kenneth Christiane L. Basilio

Korea Overseas Infra to build P9-billion mass housing project in New Clark City

October 7, 2024 | 9:33 pm

THE Bases Conversion and Development Authority (BCDA) said state-owned Korea Overseas Infrastructure and Urban Development Corp. is set to build a P9-billion mass housing project in New Clark City.

On the sidelines of the Philippines-Korea Business Forum on Monday, BCDA President Joshua M. Bingcang said that the BCDA signed a memorandum of understanding on the project with Korea Overseas Infra.

“This is something that is most welcome because it’s a foreign direct investment and not ODA (official development assistance),” Mr. Bingcang said.

“It will address the housing needs in New Clark City. Because it has been, in the past, a concern among government workers who are being asked to relocate to New Clark City,” he added.

Under the MoU, Korea Overseas Infra will build the first 3,000 housing units in New Clark City, which will be made available to government and minimum-wage workers.

“It will contain 4PH (Pambansang Pabahay Para sa Pilipino Housing) elements. The proposal is for 12 buildings, and I think three buildings will be dedicated for 4PH,” he said.

“The model that we are looking at in that arrangement is (for units at around the) P5,000 to P7,000 monthly lease price range,” he added.

The mass housing project will rise on a five-hectare site and will break ground before the end of the year, he said.

“For this five-hectare site, you will see an investment of around P9 billion. And of course, the indirect benefits will be jobs during construction, technology transfer, as well as the domino effect on the local economy,” he added.

The BCDA also signed a MoA with South Korea’s RMS Platform to conduct a feasibility study on information and communication technology (ICT) applications in New Clark City.

“We want (an) ICT application for governance and business processing for the initial locators that we expect to come in the coming years,” he said.

He said that the feasibility study is expected to take around six months, with a follow-up meeting scheduled for Tuesday.

“We’ll lay down our assignments … So that after six months, they’ll come back and then present to us the business model that fits our project,” he added.

At the same event, the Philippine Chamber of Commerce and Industry (PCCI) signed a memorandum of understanding with the Federation of Korean Industry (FKI).

Under the agreement, PCCI and FKI will seek to promote cooperation in trade and investment among Philippine and South Korean businesses.

According to the PCCI, the parties will focus on energy, defense, infrastructure, ICT and innovation, agriculture, manufacturing, and tourism, among others.

We therefore look forward to the full implementation of the MoU that we signed with the FKI earlier today,” PCCI President Enunina V. Mangio said.

“We believe that with this agreement and with the unwavering support of the Korean Embassy in Manila, we can further unleash a wave of opportunities that will strengthen our friendship towards mutual prosperity,” she added. — Justine Irish D. Tabile

Lipa City to be next focus of ASF vaccination campaign in Batangas

October 7, 2024 | 9:33 pm

Pigs — STOCK PHOTO | Image by Barbara Barbosa from Pexels

THE Department of Agriculture (DA) on Monday said that it has expanded its controlled African Swine Fever (ASF) vaccine rollout in Batangas to Lipa City.

Agriculture Assistant Secretary for Poultry and Swine Constante J. Palabrica said that the DA started vaccinating about 300 to 350 hogs at the government-controlled International Training Center on Pig Husbandry in Lipa last week.

“We just vaccinated the grower hogs last Saturday; after 14 days we will check their blood if antibodies have developed,” Mr. Palabrica told reporters.

He said that about 500,000 ASF vaccine doses will be procured this month, while about 150,000 more are awaiting purchase orders.

They started the emergency inoculation of hogs in August in Lobo, Batangas, following a resurgence of ASF in the province. About 10,000 vials were allocated for the exercise, which is expected to be completed by the end of October.

The Food and Drug Administration granted the AVAC ASF Live Vaccine from Vietnam a Certificate of Product Registration for controlled government use, with commercial availability expected to follow.

“Our challenge now is how to conduct the mass vaccination. That’s what we are trying to study,” Mr. Palabrica said.

He added that it takes an average of three weeks to conduct blood testing on hogs before they can be given the ASF vaccine. The development of antibodies against the virus is expected to take a few weeks.

As of Oct. 2, 122 municipalities across 30 provinces had active ASF cases, according to the Bureau of Animal Industry. The first ASF case was detected in 2019.

The provinces with the highest number of active cases were North Cotabato with 131, Quezon 98, Batangas 72, Camarines Sur 43, and La Union 35.

Mr. Palabrica said the DA is also targeting 80% herd immunity against the ASF by inoculating about 5 million hogs in Batangas. — Adrian H. Halili

San Miguel Food resolves 12 trademark disputes with Gold Label, IPOPHL says

October 7, 2024 | 9:32 pm

THE Intellectual Property Office of the Philippines (IPOPHL) said San Miguel Food and Beverage, Inc. (SMFB) settled 12 trademark disputes with Gold Label Resources, Inc. (GLRI).

In a statement on Monday, IPOPHL said that the two parties signed a compromise agreement on Sept. 30, resolving the disputes.

“The agreement involves 12 cases and concerns, which consist of two under appeal, four as inter partes cases, and six lodged under Mediation Outside Litigation (MOL),” the IPOPHL said.

MOL is a service of the IPOPHL Bureau of Legal Affairs that allows parties to settle their intellectual property concerns before a dispute arises.

Agreements settled under the service are enforceable and legally binding.

According to the IPOPHL, the dispute between the two parties started when the GLRI used SMFB’s registered trademark GOLD LABEL.

The Intellectual Property Code of 1997 provides that a trademark is not registrable if it resembles an existing registered market, as it is likely to deceive or cause confusion.

However, instead of elevating the dispute for adjudication, IPOPHL said that SMFB and GLRI agreed to enter the MOL and mediation tracks to expedite the resolution of their six pending cases.

IPOPHL said that the compromise agreement between SMFB and GLRI is a first of its kind under MOL.

“It paves the way for healthier relationships, encourages open communication, and ultimately contributes to a culture of collaboration,” IPOPHL Director General Rowel S. Barba said. — Justine Irish D. Tabile

ADB could approve $500-million loan for PHL soon

October 7, 2024 | 9:32 pm

THE Asian Development Bank (ADB) expects to approve this year a $500-million loan to help the Philippines adopt public financial management (PFM) reforms.

“We have completed several policy-based reform programs which focused on enhancing PFM. And in fact, two important new policy-based programs will be approved and committed later before the end of this year,” Winfried F. Wicklein, director general of ADB’s Southeast Asia Department, told a forum.

“One is the PFM Reform Program Sub-Program 1, which will go to our board soon, and then also the Second Disaster Resilience Improvement Program.”

The Philippines is seeking a $500-million loan from the ADB under the PFM Reform Program Sub-Program 1. It is also looking at another $500 million under the Second Disaster Resilience Improvement Program. Both will be funded by the Manila-based bank.

The proposed loans would help achieve the targets set in the government’s Public Financial Management Roadmap, which seeks to ensure the efficient use of government funds.

The roadmap and the resulting enhancements to public spending are expected to help the Philippines achieve upper-middle income status, Mr. Wicklein said.

According to the World Bank’s income classification system, the Philippines remained a lower middle-income country with a gross national income per capita of $4,230 in 2023.

However, the chances of attaining upper middle-income status could be hampered by the Philippines’ infrastructure deficit, as well as shortcomings in education, health, and job creation, among others, according to Mr. Wicklein.

“Achieving middle- and higher-income status will require continuous reforms, and this includes a robust public financial management reform strategy and roadmap,” he said.

“It targets the enhancement of systems needed for ensuring efficiency and effectiveness of the use of public funds.”

The roadmap would also help “ensure that the money is targeted for quality public services for the Filipino people,” Mr. Wicklein also said.

The PFM, which was approved by President Ferdinand R. Marcos, Jr. last month, addresses strategic focus areas: planning and budgeting linkages; cash management; public asset management; accounting and auditing; PFM capacity development; and the digital PFM.

The Philippines was the biggest recipient of financial assistance from the ADB last year at $8.4 billion. — Beatriz Marie D. Cruz

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