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Philippine debt-to-GDP ratio rises in third quarter

STOCK PHOTO | Image by RJ Joquico from Unsplash

THE National Government’s (NG) debt as a share of gross domestic product (GDP) was 61.3% at the end of the third quarter, the Bureau of the Treasury (BTr) said Thursday.

This was higher than the year-earlier 60.2% and the 60.1% posted at the end of 2023, the BTr said in a statement.

In 2024, the debt-to-GDP ratio target was set at 60.6%. The government seeks to bring this to below 60% by 2028.

The threshold considered by multilateral lenders to be manageable for developing economies is 60%.

“The debt ratio reflects the accomplishment of 89.5% of the full-year borrowing program to fund 2024 expenditures,” the BTr said.

At the end of September, the NG’s outstanding debt rose to a record P15.89 trillion, up 2.2% from a month earlier.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the rise in the debt-to-GDP was due to the increased borrowing by the NG as well as slower-than-expected growth.

The economy grew 5.2% in the third quarter, the weakest reading since the 4.3% posted in the second quarter of 2023.

Meanwhile, the Treasury said the deficit-to-GDP ratio fell to 5.1% at end-September from 5.7% a year earlier and 6.2% at the end of last year.

The indicator fell below the 5.6% deficit ceiling set by the government this year.

The Treasury reported that the budget deficit narrowed 1.35% to P970.2 billion in the first nine months.

Mr. Ricafort said that bringing down the debt-to-GDP ratio to below 60% would help “sustain the country’s favorable credit ratings of 1-3 notches above the minimum investment grade, to help better manage and sustain the country’s fiscal performance and overall debt management over the long-term and for the coming generations.”

“Achieving this would require narrower budget deficits, intensified tax revenue collection, and more disciplined government spending,” he added. — Aubrey Rose A. Inosante

More German companies in PHL see expanded investment, staffing levels

PHOTO FROM AUTO NATION GROUP

GERMAN FIRMS operating in the Philippines are projecting improved business conditions, which will cause more of them to invest and hire more, the German-Philippine Chamber of Commerce and Industry (GPCCI) said.

In a statement Thursday, the GPCCI said that its Fall 2024 survey indicated that 58% of German companies expect conditions to improve in the near term, up from 50% in the previous survey.

Likewise, 51% of the participants also predict expanded investment, against the 44% posted in the previous survey. Some 62% of the survey participants project higher employment.

“The optimism expressed by businesses in the German-Philippine community reflects our ongoing commitment to strengthening economic ties,”  GPCCI President Marie Antoniette Mariano said.

“The growth in investment and employment projections is a clear indicator of confidence in the market, and we look forward to seeing these positive trends materialize over the coming year,” she added.

However, the survey found that the lack of skilled workers, complex and unpredictable policies, and supply chain disruptions were the top concerns for German companies.

“Collaboration between government and the private sector is essential to building a more stable and predictable environment that fosters sustainable growth,” GPCCI Board Director and Policy Advocacy Chairperson Marian Norbert Majer said.

“It is crucial to address challenges like regulatory complexity and skilled-labor shortages to fully capitalize on this optimistic business outlook,” Mr. Majer said.

The survey also found that German companies in the Philippines see sustainability requirements as a positive driver in their external competitiveness, with 43% saying it adds to their competitive advantage.

“Our latest survey shows that German-Philippine businesses enhance their respective operations through diversification and increasingly viewing sustainability as a strategic advantage,” GPCCI Executive Director Christoper Zimmer said.

“Embracing sustainable practices and standards is proving essential for long-term growth in today’s competitive market,” he added.

According to the report, 48% of the companies see their competitive positions improving over the next five years. — Justine Irish D. Tabile

DLSU survives UST in five sets to clinch SSL tourney finals berth

Games on Saturday
(Rizal Memorial Coliseum)
3:30 p.m. – Ateneo vs UE (classification)
6 p.m. – FEU vs NU (semis)

UNBEATEN De La Salle University (DLSU) escaped with a thrilling 26-28, 25-19, 25-20, 21-25, 15-13 win over University of Santo Tomas (UST) to barge into the finals of the 2024 Shakey’s Super League (SSL) Collegiate Pre-season Championship Wednesday night at the Rizal Memorial Coliseum.

Former UAAP MVP Angel Canino and SSL National Invitationals MVP Shevana Laput formed a lethal duo to take the Lady Spikers home and closer to a redemption bid after a runner-up finish to back-to-back champion National University (NU) in the inaugural season.

La Salle, undefeated in eight games, will face either rival NU or fellow unbeaten Far Eastern University — which will clash on Saturday in the best-of-three finals next Friday.

Ms. Laput fired 19 points on 15 hits, two aces and two blocks, Ms. Canino had 17 on 16 attacks while Ms. Provido joined the party with 12 points for the wards of coach Ramil de Jesus.

Sister of PBA cager James Laput from Magnolia, the 6-foot-2 Ms. Laput scored four from her total output in the decider, where the Lady Spikers pulled away to 14-11 from a slim 11-10 lead.

Angge Poyos tried to unleash one rally for the Golden Tigresses but Ms. Canino fired a long bomb at the backrow for the gritty win.

“I just knew I had to step up. I had to be there for my team and be that reliable player for them. I hope that it showed in the court and I hope that my team will continue to rely on me and see me as an Ate for them,” said Ms. Laput.

“I know that it was a team effort. It’s always a team effort and not just one person who finishes the points and gets the MVP of the match. All of us are MVPs right now.”

Ms. Poyos scored 22 points, including eight in the rubber set, as Regina Jurado and Jonna Perdido had 10 each but to no avail for the Golden Tigresses, who were relegated to the bronze medal match after a runner-up finish in the UAAP and a championship in the V. League.

Meanwhile, NCAA champion College of St. Benilde made short work of University of the Philippines, 25-19, 25-14, 25-20, in the first phase of the classification round.

The Lady Blazers will battle the winner between Ateneo and University of the East for fifth place as UP takes on the loser for seventh place. — John Bryan Ulanday

Pagdanganan shares second with four others at LPGA Lotte Championship in Oahu, Hawaii

BIANCA PAGDANGANAN — REUTERS

FILIPINA ACE Bianca Pagdanganan fired a roaring five-under 67 to go just one shot off opening leader A Lim Kim in the Lotte Championship Thursday in Oahu, Hawaii.

Ms. Pagdanganan gunned down six birdies in the first 11 holes of the Hoakalei Country Club to grab a share of the lead early on. And though a bogey-bogey mishap in the 16th and 17th — both par-4s —pulled her down, the power-hitting Pinay recovered one stroke in the par-5 18th to move up to joint second and stay within striking distance of Kim.

The two-time Olympian shared No. 2 with Chinese Ruixin Liu, German Polly Mack, French Perrine Delacour and Taiwanese Peiyun Chien.

Ms. Kim, the 2020 US Women’s Open champion, started her round with an eagle on No. 1 en route to five-under 31 at the turn. She had a mix of three birdies and two bogeys at the back to finish at six-under for the day.

“I took advantage of all the birdie putts that I had, and gave myself a lot of opportunities. But at the same time, (I) still managed to play smart out there. Again, with the conditions, it’s easy to get impatient,” said Ms. Pagdanganan, who avoided the blustery afternoon conditions on Oahu that kept a lot of the competitors from catching Ms. Kim.

Meanwhile, Clariss Guce also got off to a good start, turning in a three-under 69 for share of 10th heading to Round 2.

Dottie Ardina shot a 70 for a piece of 21st. Paris Olympics campaigner Ms. Ardina actually stumbled with two bogeys and failed to break par in the front but bounced back with an eagle-spiked four-under 32 in the back. — Olmin Leyba

PVL turns down Farm Fresh’s request to allow Fil-Am setter to play

FARM FRESH owner Frank Lao yesterday made a humble plea to the Premier Volleyball League (PVL) to allow Fil-Am setter Alohi Robins-Hardy to play in the All-Filipino Conference unfolding Friday at the PhilSports Arena.

“After the PVL draft, there was an agreement between me and Mr. Palou that Alohi (Robins-Hardy) can play provided that she presents a valid Philippine passport,” said Mr. Lao in a statement referring to PVL President Ricky Palou.

“That’s why I was shocked to learn that she can’t play unless she joins the PVL draft. It was really frustrating to know that they will not allow her to compete unless she joins the draft, which will happen next year,” he added.

Mr. Lao’s message was conveyed by Farm Fresh team managers Kiara Cruz and CK Kanapi-Daniolco and legal counsel Donn Kapunan in yesterday’s media briefer in San Juan.

But the plea fell on deaf ears as the league decided with finality also yesterday to stick with its earlier statement to have Ms. Robins-Hardy undergo the mandatory draft next year for players who haven’t seen action in the league regardless of age.

“Much as we would like Alohi to play, we have rules to follow. Our rules are very clear. Player Alohi must go through the draft,” Mr. Palou told The STAR.

Mr. Lao said they were also told to get the nod of the majority of its league members for the request to be considered. — Joey Villar

CSB battles lowly Letran

COLLEGE of St. Benilde (CSB) coach Charles Tiu is adamant that for them to realistically contend, it would need to show it on paper.

They have been doing it thus far and will have a chance to do more as the Blazers try to move closer from claiming a precious twice-to-beat Final Four bonus with a win over a slumping Letran on Friday in NCAA Season 100 at the Filoil EcoOil Arena.

“Getting that twice-to-beat incentive in the Final Four is one way to gauge how far we’ve gone,” said Mr. Tiu.

CSB has been untouchable at the helm especially in the second round where it has won all its first five games there including a 61-56 win over University of Perpetual Help last Oct. 30 that hiked its total to a league-best 12-2. — Joey Villar

Philippines wins B-Division of Pan Continental Curling Championship

LANCOMBE, Canada — The Philippine curling team remains undefeated and secured first place in the B-Division by beating Kazakhstan in the final. The triumph paves the way for the team to move up to the A-Division and brings them a step closer to competing in the 2026 Winter Olympics in Milano Cortina. The victories in the preliminary round against Saudi Arabia, Nigeria and Puerto Rico already demonstrated the team’s strong teamwork. In the semi-final against Hong Kong, the team mastered a hard-fought victory and in the final against Kazakhstan, they triumphed with confidence on Saturday afternoon. With their promotion to the A-Division, team Philippines will now face the best curling teams in the world. This new challenge opens up the possibility of qualifying for the 2026 Olympics in two (pre-)qualifying tournaments.

Nuggets’ challenges

The Nuggets’ first game without Aaron Gordon was not without drama. Even as they were fresh off a win in which their starting forward managed to burn rubber in only the first four minutes of the contest, they knew they had to be at their best against the Thunder. After all, it’s one thing to emerge victorious against the hapless Raptors, and quite another to keep pace with the Western Conference pacesetters sans a vital cog — two, actually, with Jamal Murray likewise sidelined due to concussion protocols. Despite the challenges, however, they wound up with their third win in five starts at home, and fifth in eight matches overall.

To be sure, the Nuggets aren’t projected to be among the National Basketball Association elite in the face of significant changes to their roster since they claimed the championship in 2023. Rotation regulars Bruce Brown and Jeff Green were gone that summer, with leading perimeter defender Kentavious Caldwell-Pope following suit a year later. Meanwhile, Murray has been a shell of his former self, putting up atrocious numbers in the immediate past playoffs and doing no better so far this season.

Fortunately, the Nuggets still have Nikola Jokic to lean on. Through eight games in their 2023-24 campaign, the three-time Most Valuable Player awardee has arguably never been better. And not only are his stats at all-time highs across the board; he’s amassing them with greater efficiency. Never mind that he has become even more of a focal point of the opposition’s defensive schemes, what with Murray’s continued regression and Michael Porter Jr.’s poor play. Granted, they managed to snag Russell Westbrook from free agency; the flipside, of course, is that the nine-time All-Star possesses a Hyde side invariably angling to overcome better judgment.

Bottom line, the Nuggets will go only so far as Jokic can take them. If nothing else, yesterday’s set-to provided further proof of their utter reliance on him — enabling them to once again eke out a close one. And if he needs to exert extraordinary effort this early in the season just for them to stay competitive, there’s no telling how much he will have left in the tank when the playoffs arrive. The concern may not be unique to them, but if they’re truly bent on contending for the hardware, they would do well to weigh the efficacy of pushing for short-term gains at the expense of longer-term objectives.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and human resources management, corporate communications, and business development.

Kamala Harris concedes but vows to fight on

DEMOCRATIC presidential nominee US Vice-President Kamala Harris reacts as she delivers remarks, conceding the 2024 US presidential election to President-elect Donald Trump, at Howard University in Washington, US, Nov. 6, 2024. — REUTERS

WASHINGTON — US Vice-President Kamala Harris vowed to keep fighting for the ideals that powered her presidential campaign on Wednesday in a concession speech that acknowledged President-elect Donald Trump’s win while warning of potential dark times to come.

“While I concede this election, I do not concede the fight that fueled this campaign,” she told supporters, many of them in tears, at her alma mater Howard University, a historically Black college in Washington.

Ms. Harris, her voice at times wavering, pledged to continue fighting for women’s rights and against gun violence and to “fight for the dignity that all people deserve.”

She said she had called Mr. Trump, congratulated him on his triumph in Tuesday’s presidential election and promised to engage in a peaceful transfer of power.

“The outcome of this election is not what we wanted, not what we fought for, not what we voted for, but hear me when I say — hear me when I say: The light of America’s promise will always burn bright,” she said.

The somber mood was in striking contrast to the homecoming celebration a few weeks ago on the Howard campus when thousands of students and alumni gathered ahead of what they hoped would be the election of the country’s first graduate of historically Black Colleges and Universities as president.

Ms. Harris addressed a crowd on Wednesday that included former House Speaker Nancy Pelosi, aides in President Joseph R. Biden’s White House and thousands of fans. Ms. Harris’ campaign anthem, Beyoncé’s “Freedom,” played as she entered the stage.

Her running mate, Minnesota Governor Tim Walz, joined the crowd.

“A fundamental principle of American democracy is that when we lose an election, we accept the results. That principle, as much as any other, distinguishes democracy from monarchy or tyranny, and anyone who seeks the public trust must honor it,” Ms. Harris said, in a nod at Trump’s efforts, before he won, to sow doubt about the legitimacy of the election.

Mr. Trump claims falsely that he won the 2020 election, which he lost to Biden.

Ms. Harris encouraged her supporters, especially young people, not to give up even in their disappointment and said: “Sometimes the fight takes a while. That doesn’t mean we won’t win.”

Ms. Harris rose to the top of the Democratic ticket in July after Mr. Biden stepped aside. She brought newfound enthusiasm and cash to the effort, but she struggled to overcome voters’ concerns about the economy and immigration.

“I know many people feel like we are entering a dark time, but for the benefit of us all, I hope that is not the case. But here’s the thing: America, if it is, let us fill the sky with the light of a brilliant, brilliant billion of stars… the light of optimism, of faith, of truth and service,” she said.

Thousands had gathered at the school on Tuesday night for what they hoped would be a historic victory for the first woman to become president. They came back on Wednesday to show their support and rue her loss.

Jamela Joseph, 31, a doctoral student at Howard, said: “America had its opportunity to move forward in a progressive and intentional manner, and as a nation it has, you know, shown that it’s going to repeat itself and its history and its legacy of upholding white supremacy racism, in terms of treating women as second-class citizens.”

Donna Bruce, 72, said she had come to show love and respect for what Ms. Harris had done. She noted she had just seen a little girl with a T-shirt that said: “A Black girl will save the world.”

“I still believe that,” Ms. Bruce said. “It may not be this Black girl, but I believe a Black girl will.” — Reuters

Late sultan’s Filipino heirs fail in bid to challenge French ruling on Malaysia dispute

REUTERS

PARIS — France’s highest civil court on Wednesday rejected an appeal by the heirs of a former sultan who sought nearly $15 billion from Malaysia’s government, drawing a line under a lengthy legal battle stemming from an 1878 land deal.

Malaysia’s law minister described the ruling as a “historic victory,” while Paul Cohen, a lawyer for the heirs, said they were disappointed by the decision as it made “no sense.”

Malaysia had been left stunned when the Filipino heirs of the last Sultan of Sulu won a $14.9-billion award in a French arbitration court in 2022, prompting them to go after Malaysian assets.

But a Paris court later upheld the Malaysian government’s challenge against enforcing a partial award. The Cour de Cassation on Wednesday confirmed the decision, ruling that the award was inapplicable and void.

The 1878 deal signed between European colonists and the Sultan of Sulu for use of his territory, which spanned islands in the southern Philippines and parts of present-day Malaysia on Borneo island.

Independent Malaysia had paid a token sum annually to the sultan’s heirs to honor the agreement but stopped in 2013, after supporters of the former sultanate launched a bloody incursion to try to reclaim land from Malaysia.

The heirs have maintained they had no involvement in the incursion and sought arbitration over the suspension of the payments.

In a Facebook post late on Wednesday, Malaysia’s law minister Azalina Othman Said said the ruling would “definitively settle the matter in favor of the Malaysian people.”

The heirs have instituted a claim against the Spanish government for alleged interference, their lawyer Mr. Cohen said in a statement to Reuters.

The Spanish arbitrator who had awarded the $14.9 billion to the heirs was convicted of contempt of court earlier this year. — Reuters

Canada orders shutdown of TikTok’s Canadian business

CANADA on Wednesday ordered Chinese-owned TikTok’s business in the country to be dissolved, citing national-security risks, but added the government was not blocking Canadians’ access to the short-video app or their ability to create content.

“The government is taking action to address the specific national security risks related to ByteDance Ltd.’s operations in Canada through the establishment of TikTok Technology Canada Inc,” Innovation Minister Francois-Philippe Champagne said in a statement.

Ottawa last year began reviewing TikTok’s plan to invest and expand its business in Canada. ByteDance is TikTok’s Chinese parent company.

Under Canadian law, the government can assess potential risks to national security from foreign investments, such as the TikTok proposal. The law prevents the government from revealing the details of such investments.

“The decision was based on the information and evidence collected over the course of the review and on the advice of Canada’s security and intelligence community and other government partners,” Champagne added.

TikTok said it will challenge the order in court.

“Shutting down TikTok’s Canadian offices and destroying hundreds of well-paying local jobs is not in anyone’s best interest, and today’s shutdown order will do just that,” a TikTok spokesperson said in a statement.

Canada has banned the TikTok app from government-issued devices, saying it presents an unacceptable level of risk to privacy and security.

TikTok and ByteDance sued in US federal court in May, seeking to block a law signed by President Joseph R. Biden.

The law, signed by Mr. Biden on April 24, gives ByteDance until Jan. 19 to sell TikTok or face a ban. The White House has said it wants to see Chinese-based ownership ended on national-security grounds but not a ban on TikTok. — Reuters

US suppliers, importers prepare for Trump’s promised tariffs

IMAGE VIA THE PORT OF LOS ANGELES

LOS ANGELES — Some US businesses are activating plans to protect their businesses from President-elect Donald J. Trump’s promise to slap new and potentially hefty tariffs on a wide swath of goods from countries including China and Mexico — the top US trading partners.

Mr. Trump proposed a 10% tariff on all US imports and a 60% levy on Chinese-made products, which if enacted would affect the entire economy by pushing consumer prices higher and stoking retaliatory levies on American exports. Trump also threatened to impose a 25% tariff on all imports from Mexico.

Economists warn that Mr. Trump’s tariff plans, likely his most consequential economic policy, would push US import duty rates back up to 1930s-era levels, stoke inflation, collapse US-China trade, draw retaliation and drastically reorder supply chains.

Hong Kong-based M.A.D. Furniture Design will ramp up by 50% shipments of its Chinese-made, modern-style chairs, tables and lighting to its Minneapolis warehouse “to buy ourselves some time to react after the election,” co-founder Matt Cole said.

In Chicago, Joe & Bella co-founder Jimmy Zollo already has quadrupled orders for the online retailer’s best-selling Chinese-made shirts and doubled orders for its most popular pants for adults who have trouble dressing themselves due to arthritis, dementia or being in a wheelchair.

“Given the uncertainty around tariffs, we wanted it delivered before Chinese New Year” on Jan. 29, Mr. Zollo said of that merchandise.

That’s because Chinese factories close for two to four weeks to give workers a chance to travel home for New Year festivities with their families. When work resumes, orders from small businesses like Mr. Zollo’s often get pushed to the back of the line, he said.

During his 2017-2021 presidency, Mr. Trump imposed waves of tariffs on products like steel, washing machines, solar panels and consumer goods from China. US importers responded by rushing in goods ahead of those tariffs.

This time, Mr. Trump’s new proposal affects far more goods and US seaports could get swamped if US businesses repeat the early import strategy known as front-loading.

That protective measure requires substantial resources to cover the cost of goods and extended storage, business owners told Reuters.

As a result, some small business owners are opting out.

“We are not ordering goods early given the overhead of storage, expedited shipping, and other associated costs,” said Hilla Hascalovici, chief executive officer of New York-based Periodally, which sells Chinese-made heating patches for menstrual cramps that employers stock in bathrooms next to the pads and tampons.

Campaign promises can diverge from the policies enacted once a president takes office, said Max Lemper-Tabatsky, co-founder of Denver-based Oaktree Memorials, which sells cremation urns made in Asia and Europe.

“Rather than committing substantial capital upfront based on hypothetical tariff scenarios, we are opting for a wait-and-see approach,” he said.

Alan Baer, president of OL USA, which handles freight shipments for clients, expects that Mr. Trump will follow through on at least part of his plan.

“Tariffs in shipping are bad no matter how you look at it,” said Mr. Baer, who added that Mr. Trump’s win likely means his firm could “have less stuff to move and need less people.” — Reuters

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