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Megawide sets record and interest payment dates for bond offering

LISTED engineering and infrastructure conglomerate Megawide Construction Corp. has set the record and interest payment dates for its fixed-rate bond offering.

The record and interest payment dates for the company’s Series C, D, and E bonds are on Oct. 9 and 11, respectively, Megawide said in a stock exchange disclosure on Tuesday.

The bonds are from Megawide’s P5-billion fixed-rate bond offering listed on the Philippine Dealing and Exchange Corp. on July 11.

Megawide’s Series C bonds, with a 7.6348% interest rate, are due in three years, while the Series D bonds, due in five years, are at 8.0580%.

On the other hand, the company priced its Series E bonds at 8.4758% due in seven years.

The bond issuance received total tenders of P6.4 billion and was 1.6 times oversubscribed from the base amount of P5 billion.

RCBC Capital Corp., SB Capital Investment Corp., and PNB Capital and Investment Corp. were the joint issue managers, joint lead underwriters and bookrunners for the exercise, with RCBC – Trust and Investment Group acting as trustee.

For the first half, Megawide grew its net income by 21% to P438 million, driven by its construction and real estate businesses.

The company posted P11.4 billion in first-half revenue, up by 2% from P11.16 billion last year, led by the construction segment and the initial contribution of the real estate business.

Megawide’s current projects include the construction of the Malolos-Clark Railway Project Package 1, Metro Manila Subway Contract Package 104, and the modernization of Cebu’s historic Carbon Market District.

On Tuesday, Megawide stocks improved by 1.11% or three centavos to P2.74 apiece. — Revin Mikhael D. Ochave

Pinoy makes ‘green’ aviation sealant from lowly pili tree

JAMES DYSON FOUNDATION YOU TUBE CHANNEL

By Almira Louise S. Martinez

A FILIPINO inventor from Batangas province has created the first locally made aviation sealant from the spent resin of pili trees.

PiliSeal from the indigenous Philippine tree, which is also used in industries like food and perfume, is environment-friendly and safe, Mark Kennedy E. Bantugon, president and chief executive officer at Pili AdheSeal, Inc., said in an interview.

“The smell of sealant in aviation can irritate our respiratory organs,” he told BusinessWorld in Filipino. Unlike the unpleasant smell of other sealants, PiliSeal has a fragrant and “essential oil” smell, he pointed out.

In contrast, the usual aviation sealants are toxic and have a rubber-like smell.

Mr. Bantugon, a licensed aeronautical engineer who also trained under an aircraft maintenance company, said only 10% of extracted raw Pili resin is used as a component in known perfume brands, while the rest goes to trash.

He said 155.39 million kilos of plant waste are produced in the country yearly. About 89 million kilos come from pili, according to the Department of Science and Technology.

Mr. Bantugon, who supports the circular economy, made PiliSeal to combat the health risks of commercial sealants, while making good use of discarded materials.

Pili resin is very sticky, which he found ideal as the key ingredient of his invention.

He added that PiliSeal’s resistance to extreme temperature sets it apart from the others, which either melt or get deformed.

“When you expose PiliSeal to higher temperatures, it only hardens, which is a good characteristic,” Mr. Bantugon said.

Pili farmers will play a vital role in the success of his venture, he said. He seeks to give about 15,000 local farmers a new income stream through his business.

“We have local farming communities who depend on us and believe that we can unleash many opportunities from pili,” he said.

Before discovering pili, Mr. Bantugon tested several types of resin from other trees, like the Antipolo tree.   

Drawing inspiration from his childhood experiences during the rainy season, Mr. Bantugon first created a roof sealant from Antipolo tree resin in high school.

“During those times, our parents forced us to chew bubblegum to cover the leaks in our roof,” he said in Filipino.

Mr. Bantugon said he got about P20 million by participating in dozens of local and global competitions, which he used to develop his creation.

PiliSeal was the first Filipino invention to receive the World Intellectual Property Organization National Award for Inventors. He was also recognized by the United Arab Emirates Ministry of Economy. 

PiliSeal will undergo pilot testing in Australia and Singapore in the last quarter or the first quarter of 2025. Its estimated retail price is P330 to P350 for a 295-ml tube.

Entertainment News (09/25/24)

Filipino-dubbed Inside Out 2 comes to Disney+

THE first Filipino-dubbed film on Disney+ is Inside Out 2, and it features the voice of Filipino celebrity Joshua Garcia in a cameo as Lance Slashblade. Disney and Pixar’s Inside Out 2 will be available in a Filipino dub starting Sept. 25. Mr. Garcia’s participation as lead character Riley’s dramatic anime hero from childhood also marks his first animation dubbing role.

Rey Valera is back to perform at CenterPlay

AFTER a successful sold-out concert last year, Rey Valera returns onstage at CenterPlay in City of Dreams Manila for another one-night only performance on Sept. 26, 9:30 p.m. The singer, songwriter, music director, and film scorer will be performing his hits from the 1970s to the ’80s. These include “Walang Kapalit,” “Kung Kailangan Mo Ako,” and “Maging Sino Ka Man.” He will also perform his compositions popularized by Rico Puno (“Sorry Na, Puede Ba”), Pol Enriquez (“Ayoko Na Sa’Yo”), and Sharon Cuneta (“Mr. DJ” and “Kahit Maputi Na Ang Buhok Ko”), among others. Guests can reserve a seat or a table with consumables starting at P3,000, comprising of bar snacks, burgers, fries, and beverages. VIP couch seats for a party of eight (P24,000) and VIP Small Tables for a group of four (P12,000) are also available.

Robinsons Malls Happy Pets Club, QC hold events

A PARTNERSHIP between the Robinsons Malls Happy Pets Club (HPC) and the local government unit of Quezon City will be bringing back-to-back celebrations for pets and owners on Sept. 27 at Robinsons Galleria and on Oct. 4 at Robinsons Novaliches. The first event will be “Break Free From Rabies,” a whole-day event that includes a series of educational talks on the importance of rabies vaccination, pet health and wellness, and responsible pet ownership. Other activities include free anti-rabies vaccination, free vet consultations, microchipping, deworming, and a pet adoption drive. For those with creative talent, there will also be a Chalk Art Contest. Games and raffle prizes also await.

Australia Football League watch party at Hilton Manila

SPORTS FANS can watch the 2024 Australia Football League (AFL) Grand Final and Rugby Championship game between New Zealand and Australia at the Newport World Resorts this September. Hilton Manila is hosting a viewing party for the double header on Sept. 28, from 10 a.m. to 5 p.m. The ballroom will also be a mini expo of Down-Under products, with an OZ Kick clinic for the kids and beer games for adults during halftime breaks. A buffet lunch at 11:30 a.m. will serve an Aussie BBQ. There will be a raffle, with the grand prize being a holiday to Australia for two, including roundtrip airfare from Manila to Melbourne via the Philippine Airlines and a three-night stay at the Hilton Little Queen Street in Melbourne. Tickets to the event cost P4,800 per person; P1,450 for kids or nannies; P12,500 for a family of two adults and two kids; and P38,400 for a whole table seating up to eight persons.

Muri releases debut EP

THE Ransom Collective’s Muri has dropped her solo debut EP, 11ème (pronounced onzieme). The soulful pop EP takes listeners into her world, exploring cities, embracing cultures, and forming relationships. The record was launched at Sari-Sari Cocktails in Makati City on Sept. 22, where her band, The Ransom Collective, reunited briefly for a special set. Muri also performed the songs from the EP live with her backing band. Following the release of the record, she will be performing at the AXEAN Festival 2024 in Bali, Indonesia, on Sept. 28 and 29.

Beauty queen Chelsea Manalo stars in music video

FILIPINO alternative pop outfit Orange & Lemons (O&L) has dropped the music video of “La Bulaqueña,” featuring fellow Bulakenya and Miss Universe Philippines 2024 Chelsea Manalo. Conceptualized and directed by collaborators Everywhere We Shoot, the music video showcases the parallel storylines of the band and the beauty queen and how they are connected by a turn-of-the-century portrait by Juan Luna called Una Bulaqueña in terms of geographic affinity and influence. The painting depicts a Filipina from an elite countryside background, one who is assumed to be from Bulacan. “The symbolic repetition of the painting really deepens the narrative,” said Clem Castro, the lead vocalist and guitarist of the band. “La Bulaqueña” is out now on all digital streaming platforms.

Pokemon trading card game app soon

THE Pokémon Co. and co-developers Creatures, Inc. and DeNA Co., Ltd. have launched the Pokémon Trading Card Game Pocket, a mobile app that lets fans casually collect Pokémon cards. Now available on the App Store and Google Play, the game has a tutorial posted on the official Pokémon YouTube channel which teaches potential players how to collect Pokemon trading cards. Pre-registration is now open on the app, in preparation for the game’s official release on Oct. 30.

FIFTY FIFTY releases new mini album

BREAKOUT K-pop sensation FIFTY FIFTY has released their mini album, Love Tune, which is out now via Arista Records. In celebration of the album, the members have also shared a music video of album track “SOS” which sees them finding their joy to dance again. On this six-track EP, FIFTY FIFTY aims to continue spreading the message of love as an extension to “Cupid,” their global chart-topping hit. Love Tune is out now on all digital music streaming platforms worldwide.

MYX hunts for fresh talents in MYX VJ Search 2024

MYX has officially opened the auditions for the MYX VJ Search 2024, looking for upbeat and aspiring VJs who will embody the music channel’s new era. The MYX VJ Search is open to aspiring VJs who “possess authenticity, an outgoing personality, passion for music, and positive energy to connect with audiences.” Contestants must be 18 to 27 years old and fluent in English. Register online through myx.global/vjsearch and upload a self-introductory video. Online submissions will close on Oct. 15, 11:59 p.m.

88rising star Warren Hue releases new single

JAKARTA-born, Los Angeles-based rising star Warren Hue is taking fans to New York with the release of his new single “NYU.” Included in the upcoming mixtape, TUNA, the track delves into the challenges of balancing a long-distance relationship with his ambitions as an artist. “NYU” is produced by Hue’s collaborator, Chasu. The music video was directed and edited by Hue himself and it pieces together the nostalgic moments that come with being a 22-year-old in New York City. It is out now on all digital music streaming platforms.

Okada Manila hosts a neon full moon party

PARTY PEOPLE can dance the night away at Okada Manila’s upcoming “Glow in the Dark: A Neon Full Moon Party.” To be held on Oct. 19 at the Cove Manila, dubbed Asia’s largest indoor beach club and nightclub, there will be a strong DJ lineup of DJ Luane and Jennifer Lee, with Kappo as the MC. There will be special performances by Phillip Japor, Cammy V, and the Okada Manila Entertainment Group. General admission tickets cost P1,800, inclusive of a free drink bucket stub. The event is exclusive to guests 18 and above. Tickets are now available via TicketWorld.

Sugar Hiccup holds 4-city tour in PHL, Singapore

PIONEERING Filipino pop outfit Sugar Hiccup will embark on a concert tour next month to commemorate their more than 30 years as a band. The award-winning indie quartet has announced a four-show run with stops in Manila, Singapore, Baguio, and Cebu. The Manila leg, which is produced by GNN Entertainment Productions and The Flying Lugaw, will feature long sets by the four-piece band, and will be supported by guest acts such as Aunt Robert, The Purest Blue, Taken By Cars, and Barbie Almalbis. It will take place on Oct. 19 at 123 Block, Mandala Park, Mandaluyong City. The tour also partnered with Not Very Noise and John Bottles Events to bring Sugar Hiccup to Baguio on Oct. 25 and Cebu on Oct. 26. The current lineup of Sugar Hiccup, composed of Melody del Mundo, Czandro Pollack, Iman Leonardo, and Mervin Panganiban, will be performing some favorites from their hit albums, Oracle and Womb, as well as some rarities and new recordings. Tickets are now available.

#JournalismMatters: The joy of shared truth, a sacred bond, and democracies’ self-evident values

FREEPIK

Dear reader, citizen, fellow human,

2024 A.D. is testing our modern societies in ways we once hoped would never be repeated.

Autocratic regimes and aspiring dictators around the world have thrown a gauntlet to freedoms across borders, races, and religions. Modern conflicts span the entire globe and are fought in an information expanse that is overwhelming in its reach and power. New technologies, and the platforms they enable, are battlefields on which our future is being decided — often without our permission and against our will.

In this maelstrom, it is journalism — fact-based, evidence-based, credible news media — that has a lifelong duty to defend the self-evident values our civilization was built on. Worldwide, it is the journalists who live their responsibility to honor this sacred bond with our audiences and our communities.

In return, we feel the joy of shared truth — with You.

These special moments — when news stories save lives, improve understanding among people, and guide us through rough times — are often lost in the avalanche of disinformation; destroying trust, the bedrock of our ability to live together.

Even the very meaning of Truth is under assault.

Journalism everywhere is struggling to maintain its standing and relevance to our own communities, and for an alarming number of our news organizations, daily existence equals a struggle for bare survival.

These are indeed extraordinary times — worrying to the core to every soul that cares about people, civilization, and the democracy that made it all possible.

And yet, these troubled days are also exciting and scintillating at the same time.

In moments when systems are crumbling and foundational truths are under pressure we, the news media of the world, must show that we are made of sterner stuff; the stuff that can withstand disinformation campaigns, sustained attacks, and a flood of falsehoods.

Our business models have crumbled under the pressure of Big Tech. Truth itself is being relativized daily; what once was a common understanding of material reality is today, often supplanted by fact-free interpretation.

In many instances, the very form of the word Truth carries the meaning of Lie.

These are not random, accidental attacks. These are all part of the crusade against our system of values, our basic understanding of what is good and bad. Without our system of values, if we cannot distinguish right from wrong, we have no civilization either.

Come Sept. 28 — every World News Day — we, news media organizations from around the world, join hands to reassure you of our undying commitment to News, Facts, Accountability, Public Service, Humanity, Scrutiny, Independence, Ethics, and Community.

These words have deep meaning.

They matter to us.

There’s only one choice ahead of us: We, the news media, will continue to fulfil our sacred duty. The news we report will remain based in fact. We will defend Truth.

And we want to further assure you, dear reader, that it is our every intention to keep it that way. We will not tire, and we will not give up. The battle for Truth is the battle for our common future.

And to our colleagues everywhere in this troubled stretch of history: Do not despair. You are not alone. Our mission ties us all together.

The noise and violence will eventually subside, and the discourse based on truth and decency will return. It may not happen soon, but it will happen eventually.

For now, we fight. Every moment of every hour of every day.

This 2024 World News Day, let us ensure we never forget why we are here in the first place — and help to keep the joy of shared truth with our readers, our true North.

 

Branko Brkic is the editor in chief of the Daily Maverick, and the creator of the Choose Truth Campaign in South Africa, Maria Brkic—Ressa, a Nobel Peace Prize Laureate, is the CEO of Rappler.com in the Philippines.

City & Land Developers board OKs application for P400-M commercial paper issuance

LISTED City & Land Developers, Inc. said its board has approved the filing of an application for the issuance of P400 million worth of commercial papers as part of the company’s funding requirements.

The company will file the application with the Securities and Exchange Commission (SEC), City & Land said in a regulatory filing on Tuesday.

The proceeds will be used to finance the company’s funding requirements.

For the first half, City & Land saw a 41.9% decline in its net income to P54.49 million from P93.86 million last year.

January-to-June total revenue dropped by 38.1% to P176.67 million versus P285.33 million a year ago.

City & Land is a subsidiary of Cityland Development Corp. It is engaged in the business of acquiring and developing land for residential, office, commercial, institutional, and industrial use.

Some of its projects include Pacific Regency in Malate, Manila; Grand Emerald Tower in Ortigas Center, Pasig; Manila Residences in Veterans Village, Quezon City; and One Taft Residences in Malate, Manila.

On Tuesday, City & Land stocks rose by 4.35% or three centavos to end at 72 centavos per share. — Revin Mikhael D. Ochave

ReForm Plastic uses tech to upcycle single-use plastics

By Edg Adrian A. Eva

REFORM PLASTIC, a social enterprise under EverGreen Labs, is equipping local sectors with technology to upcycle single-use plastic into plastic boards for various industries.

“It is a collaborative effort to reduce the number of low-value plastics (single-use plastics) in places that we don’t want them to be,” Isidro Luis “Chino” Borromeo, operations coordinator at ReForm Plastic said in an interview.

This is while giving people economic opportunity by make something out of plastics, he added.

Under their franchising model, ReForm Plastic offers franchises tailor-fitted machinery, technologies, and programs catered to the type and volume of waste collected in their areas.

“We try to make sense of the community situation… so that’s the value of having our franchise model here, instead of just being a machine distributor,” Mr. Borromeo said.

Items produced by the franchises include plastic boards that are water- and termite- resistant, self-extinguishing and resilient material made from 100% post-consumer waste, Mr. Borromeo said.

It can replace traditional construction materials like plywood, cement, and high-density polyethylene. It can be cut, screwed, and modified for a wide range of applications, such as furniture, hardware, construction, and more.

“Some franchises are creating chairs for schools, trash bins and flooring,” Mr. Borromeo said, adding that the possibilities are endless.

The company started its operations in Vietnam and identified an opportunity to expand into the Philippines, where single-used plastics are also a big problem.

“No one seems to be tackling low-value plastic, such as flexible plastic, plastic bags, sachets, and multilayered packaging,” he said. “These plastics are often going straight to landfills or even worse, straight to our bodies of water.”

The Philippines’ “sachet economy” has led to alarming levels of plastics being dumped in bodies of water, according to the World Bank.

It is estimated that the Philippines generates 2.7 million tons of plastic waste yearly, with 20% ending up in the ocean.

ReForm Plastic aims to address the problem of single-use plastics by turning them into a profitable venture for communities, governments, organizations, and businesses.

“Through our different projects, we try to bring value all across the waste value chain,” Mr. Borromeo said. “We’re talking about how these recycling centers can bring value all the way to collectors.

The company has 14 franchises across Africa and Asia. In the Philippines, they are targeting at least three operational franchises by yearend.

UnionBank to infuse P1.6 billion in fresh capital into UnionDigital

PHILIPPINE STAR/KRIZ JOHN ROSALES

UNION BANK of the Philippines, Inc. (UnionBank) will inject P1.6 billion in fresh capital into its digital banking arm to support its expansion, it said on Tuesday.

“Please be informed that the Board of Directors of Union Bank of the Philippines, at its meeting held on Sept. 23, approved the infusion of additional capital of up to P1.6 billion in UnionDigital Bank Inc. to support UnionDigital’s ongoing business operations and allow it to deliver sustainable growth, subject to the applicable regulatory approvals,” the listed Aboitiz-led bank said in a disclosure to the stock exchange.

This marks UnionBank’s fourth capital injection into UnionDigital, with the last being a P1.8-billion infusion in November 2023.

In October 2023, UnionBank also made an equity investment of P900 million in UnionDigital to support its growth and boost its capital position.

UnionDigital is one of the six BSP-licensed online-only banks in the country. It secured its license in July 2021 and began operating in July 2022.

The digital bank’s total assets stood at P21.87 billion as of March 31, down by 2.67% year on year, latest data from the Bangko Sentral ng Pilipinas (BSP) showed.

Its net loans declined by 37.59% to P8.08 billion in the first quarter, with deposits likewise down by 5.68% to P16.52 billion.

UnionDigital’s total equity was at P4 billion at end-March, up by 2.56% year on year.

The digital lender’s net interest margin was at 11.945%.

Meanwhile, its listed parent UnionBank saw its attributable net income rise by 20.12% year on year to P3.02 billion in the second quarter. This brought its net profit for the first semester to P5 billion, down by 17.18% from the previous year.

UnionBank’s shares dropped by 10 centavos or 0.25% to close at P39.40 apiece on Tuesday. — A.M.C. Sy

Manila lags in financial centers list

The Philippine capital fell nine places to 110th out of 121 global financial centers in the 36th edition of the biannual Global Financial Centers Index (GFCI) by London-based think tank Z/Yen. The GFCI evaluates the future competitiveness of financial centers and is used as a reference for policy and investment decision-makers. Manila’s GFCI rating went down by 15 points to 616, the lowest rating among its peers in the East and Southeast Asian region. In a separate assessment of financial technology (fintech), Manila fell four places to 101st out of 116 financial centers.

Manila lags in financial centers list

How PSEi member stocks performed — September 24, 2024

Here’s a quick glance at how PSEi stocks fared on Tuesday, September 24, 2024.

PHL shares rise further on rate cut expectations

PHILIPPINE STAR/KRIZ JOHN ROSALES

PHILIPPINE SHARES climbed further on Tuesday amid expectations of more rate cuts by the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve.

The Philippine Stock Exchange index (PSEi) rose by 0.2% or 14.96 points to close at 7,432.21 on Tuesday, while the broader all shares index increased by 0.13% or 5.48 points to end at 3,963.50. This was a fresh 31-month high for the PSEi as this was its best finish since 7,440.91 on Feb. 22, 2022.

“Investors took cues from Wall Street’s record performance overnight, driven by optimism towards the Fed’s monetary policy stance,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “Positive sentiment towards the policy outlook of the Bangko Sentral ng Pilipinas also helped in maintaining the upward momentum.”

US stocks closed modestly higher on Monday, Reuters reported. The Dow Jones Industrial Average rose 61.29 points or 0.15% to 42,124.65; the S&P 500 gained 16.02 points or 0.28% to 5,718.57; and the Nasdaq Composite gained 25.95 points or 0.14% to 17,974.27.

Comments on Monday from three reserve bank presidents were the main focus as investors searched for clues on why the central bank kicked off its easing cycle with an outsized 50-basis-point (bp) cut.

Fed officials including Raphael Bostic, Neel Kashkari, and Austan Goolsbee supported the central bank’s last rate cut and voiced support for more cuts for the rest of the year.

Meanwhile, Finance Secretary Ralph G. Recto, who sits on the central bank’s Monetary Board, said on Tuesday the monetary authority can afford to slash interest rates further and match the size of the US Federal Reserve’s rate cut.

Slowing inflation allowed the central bank to cut its benchmark borrowing rate by 25 bps to 6.25% in August, its first rate cut since November 2020, ahead of major central banks, including the Fed.

BSP Governor Eli M. Remolona, Jr. had earlier flagged there was room for one more interest rate cut this year. The BSP’s next meeting is on Oct. 17.

“Local shares rose on Tuesday, supported by the BSP’s reserve requirement cut and China’s new stimulus measures,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan added in a Viber message.

Majority of sectoral indices closed higher on Tuesday. Property rose by 0.95% or 28.22 points to 2,989.96; financials went up by 0.43% or 10.30 points to 2,372.48; industrials increased by 0.09% or 8.81 points to 9,756.33; and mining and oil climbed by 0.05% or 4.91 points to 8,532.13.

Services dropped by 0.61% or 13.96 points to 2,250.79; and holding firms went down by 0.02% or 1.73 points to 6,295.96.

Value turnover improved to P11.79 billion on Tuesday with 1.02 billion issues switching hands from the P8.72 billion with 698.15 million shares traded on Monday.

Advancers narrowly beat decliners, 102 versus 100, while 57 names closed unchanged.

Net foreign buying surged to P2.99 billion on Tuesday from P1.77 billion on Monday. — R.M.D. Ochave with Reuters

Peso sinks to P56 level on BSP rate bets

BW FILE PHOTO

THE PESO on Tuesday sank to the P56-per-dollar level for the first time in almost two weeks after Finance Secretary Ralph G. Recto said the Bangko Sentral ng Pilipinas (BSP) has space for a big rate cut following the US central bank’s move last week.

The local unit closed at P56.245 per dollar on Tuesday, falling by 27.5 centavos from its P55.97 finish on Monday, Bankers Association of the Philippines data showed.

Tuesday’s close was the peso’s worst showing in two weeks or since it ended at P56.385 against the dollar on Sept. 10. This was also the first time the local unit finished at the P56 level since Sept. 12’s P56.20.

The peso opened Tuesday’s session weaker at P56.05 against the dollar. Its intraday best was at P55.97, while its worst showing was at P56.33 versus the greenback.

Dollars exchanged rose to $1.8 billion on Tuesday from $1.39 billion on Monday.

The peso dropped after the dollar rallied overnight and following dovish signals from Mr. Recto, a trader said by phone.

Mr. Recto, who sits on the central bank’s Monetary Board, said on Tuesday the monetary authority can afford to slash interest rates further and match the size of the US Federal Reserve’s rate cut, Reuters reported.

“The Fed reduced by 50 basis points (bps). I think we can also do half a percent,” Mr. Recto a told a media briefing.

Inflation would likely ease to 2.5% in September, he said, the slowest in nearly four years, after rising at an annual pace of 3.3% the previous month. Mr. Recto said that could settle at 3.4% this year, within the central bank’s 2% to 4% target range.

Slowing inflation allowed the central bank to cut its benchmark borrowing rate by 25 bps to 6.25% in August, its first rate cut since November 2020, ahead of major central banks, including the Fed.

The Fed started cutting rates on Sept. 18 with a larger-than-usual half-percentage-point reduction, which will likely be followed by a 25-bp cut in both November and December, according to a Reuters poll.

BSP Governor Eli M. Remolona, Jr. had earlier flagged there was room for one more interest rate cut this year. The BSP’s next meeting is on Oct. 17.

The peso was also dragged down by higher global crude oil prices and US Treasury yields amid renewed geopolitical tensions in the Middle East, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Wednesday, the trader sees the peso moving between P55.90 and P56.40 per dollar, while Mr. Ricafort expects it to range from P56.15 to P56.35. — AMCS with Reuters

PHL hoping S.Korea FTA can take effect this year

REUTERS

THE PHILIPPINES continues to expect the free trade agreement (FTA) with South Korea to take effect within the year with ratification still pending on the Korean side, according to the Department of Trade and Industry.

“When it comes to the effectivity of the FTA, we are targeting effectivity this year. At least on our side, we’re done with the ratification process,” Trade Undersecretary Allan B. Gepty told BusinessWorld on the sidelines of a budget hearing at the Senate on Tuesday.

“We’re just waiting for South Korea to finish their full domestic process of ratification. But I understand they are now in the process of seeking the approval of their National Assembly,” he added.

He said the optimism stems from the scheduled visit of the South Korean leader next month.

“We are very happy that yesterday, finally, the Senate concurred on the ratification of the bilateral FTA. That is timely because I understand that the president of South Korea (Yoon Suk Yeol) will be visiting the country in October,” he said.

“Of course, it is also good news for our banana industry because if there is one sector that will mainly benefit from the FTA, that will be them,” he added.

South Korea was the country’s third-biggest banana export market last year, accounting for $164.54 million or 13% of fresh banana exports in 2023.

In the first quarter, banana exports to South Korea hit $102.58 million, well ahead of the year-earlier pace.

On Monday, the Senate ratified the FTA between the Philippines and South Korea, which will remove Philippine tariffs on 96.5% of goods from South Korea and Korean tariffs on 94.8% of Philippine products.

Signed in September last year, the FTA allowed the Philippines to secure the elimination of 1,531 tariff lines on agricultural goods, of which 1,417 would be removed after the FTA enters into force.

It will also remove 9,909 tariff lines of industrial goods, 9,747 of which would be removed after the deal enters into force.

According to Mr. Gepty, the agreement will come into force on the first day of the second month, or on such other date as the parties may agree, after they notify the completion of all necessary domestic legal procedures. — Justine Irish D. Tabile

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