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Honorary Order of Sikatuna presented to East-West Seed founder Simon N. Groot

Simon Groot and Benito Domingo, founded East-West Seed together in 1982.

It is with great honor and pleasure that we announce the recognition bestowed upon Simon N. Groot, the esteemed founder of East-West Seed. Mr. Groot has received the prestigious Order of Sikatuna in recognition of his exceptional contributions to the Republic of the Philippines and his dedicated efforts in fostering, developing, and strengthening relations between various nations and the Philippines. Mr. Groot is the first Dutch private citizen to be conferred with this diplomatic decoration.

The Order of Sikatuna, one of the Republic’s most distinguished diplomatic honors, acknowledges Mr. Groot’s pivotal role in improving the livelihoods of millions of smallholder farmers in the Philippines and across more than 60 tropical countries.

After years of dedicated research and development, starting in the Philippines with business partner Benito Domingo, Groot introduced the first locally developed commercial vegetable hybrids in tropical Asia. Under Mr. Groot’s guidance and together with Mr. Domingo, East-West Seed has pioneered a dynamic, smallholder-centric tropical vegetable seed industry, born in the Philippines, that continues to expand globally. This was recognized in 2019 when Mr. Groot won the World Food Prize. The same year he obtained an honorary doctorate from University of the Philippines in Los Baños (UPLB).

Mr. Groot is also one of the founding members of the Philippine Netherlands Business Council (PNBC) and continues to serve in its Advisory Council to this day.

“Seeing big smiles on the faces of farmers has given me tremendous satisfaction as I can observe from these smiles that what we have done for them is really of value and meaning.”

— Simon N. Groot

Mr. Groot’s visionary approach gave rise to East-West Seed’s innovative Knowledge Transfer initiative. East-West Seed Knowledge Transfer Foundation annually trains more than 100,000 farmers in best agricultural practices for vegetable production, thereby contributing to the growth and sustainability of local communities in Asia and Africa.

Furthermore, his work has elevated both rural and urban markets for vegetable crops, making nutritious produce more accessible and affordable for countless families in the Philippines and beyond. For millions of people, Simon N. Groot’s dedication over the last 40+ years, has broken the cycle of poverty and malnutrition that often plagues farmers who rely on low-quality seeds. Through his leadership, these smallholder farmers have experienced increased yields, improved economic prospects, and better nutrition for their families.

Simon N. Groot’s receipt of the Order of Sikatuna highlights his extraordinary achievements and unwavering commitment to the Republic of the Philippines and its diplomatic relations with foreign states. We applaud Mr. Groot for his exceptional service and dedication to fostering global cooperation.

 

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Australia’s outback dialysis clinic says Indigenous Voice can save lives

STOCK PHOTO | Image by PolitUnion from Pixabay

ALICE SPRINGS – Three times a week, Rachel Napaltjarri, an Aboriginal woman suffering from end-stage kidney failure, receives lifesaving dialysis to cleanse her blood in a mobile medical unit in central Australia’s remote outback town of Alice Springs.

She’s been on dialysis for six years and will need it for the rest of her life unless she gets a kidney transplant.

Napaltjarri, 55, is one of dozens of Indigenous Aboriginal and Torres Strait Island people who are treated each day for kidney failure at remote dialysis clinics run by The Purple House, an Aboriginal community-led health service.

Headquartered in Alice Springs, it’s an example of how community involvement can improve outcomes for Australia’s Indigenous people, The Purple House CEO Sarah Brown told Reuters in an interview.

“We don’t have flashier machines or more experienced nurses,” she said. “The only difference is that people are running this place together, and they get to control what happens to them and they can help other communities out,” she said.

Purple House is evidence of how including the community can improve outcomes, Brown said. This is why she hopes the country will vote “Yes” in a referendum on Oct. 14 to recognise Indigenous Australians in the constitution and create an Aboriginal advisory body called the “Voice to Parliament”.

“Having policy where Aboriginal people have actually been able to advise and have some input on whether an idea is going to work or not is such a simple no-brainer but could have such a big impact,” Brown said.

According to the Australian Bureau of Statistics, Aboriginal and Torres Strait Islander people, who make up about 3.8% of the population, are more than twice as likely as non-Indigenous people to have chronic kidney disease.

Brown explained it’s a disease of “poverty, dispossession and powerlessness”, from what was a seminomadic lifestyle, now becoming reliant on processed foods.

Kidney failure is a common cause of death among the Indigenous. But Brown said Purple House’s community-led model has helped central Australia go from having the worst dialysis survival rates in the country to the best.

The health service operates 19 remote clinics across remote communities in Northern Territory, Western Australia and South Australia.

Treatment for kidney failure requires dialysis for five hours a day, thrice a week. For those needing the treatment it means families moving from their home to Alice Springs or Darwin for treatment.

Communities are left without elder leadership, families are broken and the culture connections are weakened. Patients also suffer from isolation and depression.

The Purple House is a home away from home for these Indigenous dialysis patients, Brown said, with a mission to help people keep their connection with Country and family despite the fact that they need treatment for end-stage renal failure. – Reuters

Exxon set to buy shale rival Pioneer for $60 billion in stock -sources

STOCK PHOTO | Image by byza from Pixabay

NEW YORK/HOUSTON – Exxon Mobil is expected to say on Wednesday it will buy US rival Pioneer Natural Resources for about $60 billion, a deal that puts it atop the largest US oilfield and secures a decade of low-cost production, according to people familiar with the matter.

Exxon, which was valued at $442 billion on Tuesday, is expected to make a pure stock offer valued at more than $250 a share for Pioneer, the people said on condition of anonymity because the details were not public.

Pioneer shares closed at $237.41 on Tuesday, having risen 11% since the first reports of a deal surfaced last Thursday.

It would be the largest acquisition by any company this year and Exxon’s biggest since its $81 billion purchase of Mobil Oil in 1998.

Exxon declined to comment on “market speculation,” while Pioneer did not immediately respond to a request for comment.

The purchase could face tough scrutiny by antitrust regulators because it propels Exxon to be the top US shale producer by volume. The deal will leave four of the largest U.S. oil companies in control of much of the Permian Basin shale field and its extensive oilfield infrastructure.

Exxon has pulled itself from deep losses and huge debts in the last two years by slashing costs, selling dozens of assets and benefiting from high energy prices spurred by Russia’s invasion of Ukraine.

Chief Executive Darren Woods has rebuffed investor and political pressure to shift strategies and embrace renewable energy as European oil majors have done. He faced heavy criticism for sticking to a heavy oil-dependent strategy as climate concerns became more pressing.

The decision paid off when the company last year earned a record $56 billion profit, two years after losses ballooned to $22 billion during the COVID-19 pandemic.

Exxon socked away some of the huge profits from the oil-price run up, putting aside some $30 billion in cash in anticipation of deals, according to analysts.

Pioneer has been one of the most successful oil companies to emerge from the shale revolution, which turned the U.S. from a major oil importer into the world’s largest producer in little more than a decade.

It is the third-largest oil producer in the Permian basin, after Chevron Corp and ConocoPhillips, with rock-bottom production costs averaging about $10.50 per barrel of oil and gas.

Under CEO Scott Sheffield, the oil producer grew through rapid-fire purchases, including multi-billion dollar deals in 2021 for DoublePoint Energy and Parsley Energy.

Exxon’s planned purchase would outrank oil major Shell’s $53 billion acquisition of BG Group in 2016, which put it atop the global liquefied natural gas market.

Bloomberg News reported the deal’s price earlier on Tuesday.

In July, Exxon agreed to a $4.9 billion all-stock deal for Denbury Inc., a small US oil firm with a network of carbon dioxide pipelines and underground storage. That acquisition was intended to bolster Exxon’s nascent low-carbon business.

The largest US oil producer originally made an all-cash bid for Denbury, and at the last minute switched to all stock, reflecting both the target’s move up in market value during the talks and investors wanting to take part in any upside in Exxon’s stock.

The oil giant’s share price has recovered strongly since its early 2020 tumble to about $30 as oil and gas prices collapsed. Exxon shares recently hit an all-time high of $120 per share. – Reuters

US talking to Israel, Egypt about safe passage for Gaza civilians -White House

WASHINGTON – The US is talking with Israel and Egypt about the idea of a safe passage for Gaza civilians as Israel strikes the enclave after a deadly Hamas attack over the weekend, US national security adviser Jake Sullivan said on Tuesday.

“We are focused on this question, there are consultations going on,” Mr. Sullivan told reporters at the White House.

“But the details of that are something that are being discussed among the operational agencies and I don’t want to share too much of that publicly at this time,” Mr. Sullivan said.

Israel has battered Palestinians with deadly air strikes in Gaza after Palestinian Islamist group Hamas’ attack on Israel on Saturday that left hundreds dead.

Gaza’s Health Ministry said at least 900 Palestinians were killed and up to 4,600 wounded in Israeli air strikes on the blockaded enclave since Saturday. The enclave, only 40km (25 miles) long by 10km (6 miles) wide, is home to 2.3 million people.

The United Nations said more than 180,000 Palestinians in Gaza had been made homeless. They have lived under an Israeli-led blockade for 16 years, since Hamas seized control of the territory in 2007.

Israel’s embassy in Washington said the death toll from Hamas’ weekend attacks had surpassed 1,000. Washington and some of its key Western allies have said Israel has the right to self-defense.

“We do not deliberately target civilians,” Mr. Sullivan said of the US and Israel, when asked about civilian casualties in Gaza in the Tuesday press briefing.

“We work to make sure that our military operations are conducted consistent with the rule of law and the law of war,” he added.

Palestinians in Gaza have said that Israeli bombardment has been heavy and feels like a new “Nakba,” the Arabic word for catastrophe that refers to the 1948 war of Israel’s creation that led to their mass dispossession. – Reuters

Hacktivists stoke Israel-Gaza conflict online

TOWFIQU BARBHUIYA-UNSPLASH

Hacktivist groups say they are hitting Israeli targets online amid the war in Israel and Gaza, disrupting and defacing websites like the Jerusalem Post.

The conflict between Israel and its Arab neighbors routinely attracts both intense global interest and politically minded hackers – dubbed hacktivists – who piggyback on the fighting, either to support their favored side or simply get attention.

“There are dozens of victims per day, claimed by both pre-established and new (hacktivist) groups,” cyber intelligence firm Recorded Future said.

Examples of serious or long-term damage are still thin, but the activism shows how a subset of supporters use digital tools to bring the war online.

So far, among other incidents, a set of hackers supporting Hamas, known as AnonGhost, have claimed they disrupted an Israeli emergency alert application, according to their social media channel.

Another group, named AnonymousSudan, said on Telegram they were actively targeting Israel’s critical infrastructure, although it provided little by way of evidence for its claims.

More than 100 websites in Israel have been either defaced or temporarily disrupted through simple distributed denial of service attacks (DDoS), which work by flooding a site with a rush of inauthentic traffic, according to security analysts.

“The attackers have managed to knock us offline for extended periods over the past few days,” Jerusalem Post Editor-in-chief Avi Mayer said in an email. “This is a blatant assault on freedom of the press.”

Israel’s Computer Emergency Response Team, or CERT, did not immediately respond to requests for comment.

It is often difficult to determine the accuracy of hacktivists’ claims. The same dynamic played out in the wake of Russia’s full-scale invasion of Ukraine, which saw a volunteer army of pro-Ukraine hackers claim credit for numerous attacks on Russian websites and other online services.

Analysts do however expect significant cyberespionage activity to happen behind the scenes.

Last week, Microsoft released a report which recorded how one Gaza-based hacker group known as Storm-1133 had ramped up its cyber spying efforts on Israeli companies involved in telecommunications, defense and energy earlier this year.

“We assess this group works to further the interests of Hamas,” the report stated.

Omri Segev Moyal, the chief executive of Israel cybersecurity firm Profero, said his firm had recently picked up some hacking activity tied to an Iranian spy group nicknamed Muddy Water and intrusion attempts potentially linked to Molerats, another group that researchers believe acts for Hamas.

Molerats activity “stopped after the bombing started,” he said. – Reuters

Eric Clapton and Kurt Cobain guitars could fetch up to $2 million each at auction

STOCK PHOTO | Image by Gerd Altmann from Pixabay

Two iconic guitars played by Eric Clapton and Nirvana’s Kurt Cobain could each fetch $1 million to $2 million when they go up for auction in November.

Mr. Clapton’s “The Fool”, a psychedelic painted guitar, was known for its unique sound. The Beatles’ George Harrison gave it to Clapton after his guitar was stolen.

“It was the guitar he used to create the very famous woman tone that guitar players today try and recreate 50 years since,” said Martin Nolan, founder of Julien’s Auctions.

With hits such as “Bell Bottom Blues,” “Cocaine” and “Layla,” Mr. Clapton has won 18 Grammy Awards and was inducted into the Rock and Roll Hall of Fame in 2000.

The other guitar, also estimated between $1 million and $2 million, is Kurt Cobain’s guitar, the “SkyStang I”, which Mr. Cobain played during his final public performance on Nirvana’s “In Utero” concert tour.

Described as his “workhorse” because of the amount he used it during the tour, the guitar still has the same strings and even features black tape covering over the Fender brand name, as “Kurt hated corporate sponsorship and corporate branding,” according to Nolan.

The world record for a guitar was set in June 2020 when Mr. Cobain’s 1959 Martin D-18E guitar that he played for his 1993 appearance on “MTV Unplugged” sold for over $6 million.

Mr. Cobain popularized grunge rock in the early 1990s. Nirvana broke through to mainstream pop success with the smash hit “Smells Like Teen Spirit,” the first single from the band’s second album, “Nevermind,” released in 1991.

The auction also features items belonging to Mr. Cobain, including his cardigan, jeans, and a pack of cigarettes, all of which he left behind at rehab.

The lead singer of Nirvana was found dead, aged 27, of a self-inflicted gunshot wound in his Seattle home in April 1994.

A portion of the guitar proceeds will go to Kicking the Stigma, a mental health initiative.

There are over 1,000 items going up for auction at Nashville’s Hard Rock Cafe between Nov. 16-18 at the “Played, Worn & Torn: Rock ‘n’ Roll Iconic Guitars and Memorabilia” event.

Also for sale are Amy Winehouse’s bustier from her performance at the Brit Awards, jewelry belonging to Prince and Elvis Presley, and items from the estate of Frank Zappa, including the first guitar he ever bought. – Reuters

GM, Canadian union reach tentative agreement, ending strike

REUTERS

OSHAWA, Ontario – General Motors and Canadian union Unifor reached a tentative agreement on Tuesday just hours after 4,300 workers went on strike at three GM facilities.

The union said the tentative agreement follows the pattern agreement Unifor reached with Ford Motor F.N last month and includes wage hikes of up to 25%. The strike ended after about 12 hours in which it had threatened the largest U.S. automaker’s profitable full-size truck production. Workers must still vote to approve the agreement.

“When faced with the shutdown of these key facilities General Motors had no choice but to get serious at the table and agree to the pattern,” said Unifor National President Lana Payne. She added that GM agreed to items it initially fought including “pensions, retiree income supports and converting full-time temporary workers into permanent employees over the life of the agreement.”

The agreement will cut the time needed to get to top pay from eight years to four years, Payne said, which is important since there are so many younger GM Canadian workers.

“It’s great for the workers, but we’re not out of the water yet because we still have to ratify this agreement,” said GM worker Darrell Colley, standing outside the Oshawa plant after the agreement was reached.

GM shares closed up 1.6%. The company said work resumed at all three facilities in the afternoon and that the deal “recognizes the many contributions of our represented team members with significant increases in wages, benefits and job security.”

The walkout by workers early on Tuesday came after Unifor said GM was “stubbornly refusing” to match the contract the labor union reached with Ford.

The walkout was set to intensify the headache faced by the automaker in the U.S. where it is racking up millions of dollars in daily losses to the United Auto Workers (UAW) strike that started Sept. 15.

GM has lost 34,176 vehicles of production since the start of the UAW strike, according to an estimate by Deutsche Bank. The automaker said last week it had 442,586 vehicles in stock.

The UAW has struck two GM assembly plants in the United States and 18 parts distribution centers. GM has laid off 2,300 U.S. workers due to the impacts of the UAW strike.

Unifor has used the “pattern bargaining” approach in its talks, reaching a deal first with Ford. The union said GM will now follow the pattern. The UAW, on the other hand, broke with that approach under its new leadership.

Payne said Stellantis workers deserve the same agreement but expected the company “will come here kicking and screaming the way that General Motors did.” Stellantis declined to comment.

Unifor represents about 18,000 Canadian workers at Ford, GM and Chrysler parent Stellantis.

Separately, the UAW said Tuesday that 97% of General Dynamics GD.N manufacturing workers in Michigan, Ohio, and Pennsylvania voted to authorize a strike. The contract covering 1,100 defense industry workers expires on Oct. 22.

On Monday, about 4,000 UAW workers at Volvo Group VOLVb.ST-owned Mack Trucks went on strike after overwhelmingly rejecting a proposed five-year contract.

About 73% of the unit’s 4,000 workers in Pennsylvania, Florida and Maryland voted against the deal that included a 19% pay raise.

Unions have increasingly resorted to strikes across sectors from airlines to automakers, buoyed by a tight labor market and positive public opinion in the U.S., even though union membership has fallen. – Reuters

China ready to cooperate with Philippines on illegal offshore gambling

PHILSTAR

BEIJING – China is ready to fully cooperate with the Philippines to deal with illegal offshore gambling in the Philippines, the Chinese embassy in Manila said on Wednesday.

China helped Manila shut three illegal gambling zones and repatriated nearly 400 Chinese citizens, the embassy said, also urging the Philippines to take strong measures to crack down on such activities.

Offshore gambling emerged in the Philippines in 2016 and grew exponentially, as operators capitalised on the country’s liberal gaming laws to target customers in China, where gambling is banned. — Reuters

vivo V29 5G: Unleashing brilliance with Aura Light Portrait 2.0, enhanced performance in fascinating chic design

vivo, a global smartphone technology pioneer, proudly introduces its latest marvel, the V29 5G, featuring a massive 12GB RAM and 512GB ROM. This stunning addition to the V Series raises the bar for smartphone innovation with its flagship-level Aura Light Portrait 2.0.

The vivo V29 5G is your gateway to capturing and celebrating every moment in style. With Aura Light 2.0 and Smart Color Temperature Adjustment, it delivers an enchanting user experience while effortlessly adapting to daily challenges.

Your personal lighting maestro

Acknowledging the pivotal role of light in capturing breathtaking images, the vivo V29 5G boasts the largest Aura Light 2.0 in V Series history, ensuring uniform illumination, eliminating shadows, and enhancing skin tones. 

The vivo V29 5G goes beyond enhancing visual appeal with its all-encompassing Aura Light 2.0. It introduces the integration of Smart Color Temperature Adjustment, allowing the device to adapt to various environments with varying color temperatures. 

Whether you find yourself in dynamic nightclubs, vibrant neon-lit streets, or cozy bars, the vivo V29 5G effortlessly adjusts its color temperature to harmonize with the surroundings, effectively becoming your personal light designer. 

Subjects in dimly lit environments are gently illuminated, allowing their unique characteristics to shine through. The result? Bright, clear portraits with a captivating atmosphere that enrich every shot.

Capturing every smile with grandeur

Experience enhanced imaging with a 50MP HD Camera, 92° wide-angle front camera, Auto Focus, and EIS stabilization. 

The expanded field of view and precise autofocus capabilities liberate your photos from the limitations of traditional selfies, capturing more smiles effortlessly and without distortion. 

Whether it’s group photos or videos, the vivo V29 5G empowers you to unleash your creativity, creating enchanting memories radiating with brilliance and authenticity.

Unlock the beauty of the night

The vivo V29 5G also excels in night photography with its advanced 50MP OIS Ultra-Sensing Camera. It delivers stable images even in low-light conditions.

@vivo_philippines We tried this vivo V29 5G night mode and look at the output even without aura light! Paano pa kapag meron? Wait for the upcoming contents! ✨ #vivogoals #vivoSmartphones #vivoV29Series5G #vivoLoveAndPassionSpotlighted ♬ original sound – vivo_philippines

Expect superior image quality and genuinely satisfying results, all without the hefty price tag typically associated with studio-level photography integrated seamlessly into a smartphone.

But that’s not all – the V29 takes night-view videos to new heights with its advanced technology. The Ultra Stable Video feature, supported by OIS and EIS, guarantees steadier and clearer shots of various night scenes. 

Moreover, the Super Night Video feature, bolstered by excellent night scene algorithms and robust stabilization capabilities, addresses the challenges of shooting videos in low-light conditions. 

In essence, the vivo V29 5G allows your night shots to shine brilliantly, capturing outstanding details with impeccable beauty.

Your ultimate one-stop vlog-maker

The V29 is expertly crafted to empower users in their pursuit of vlogging excellence and social media content creation. The Micro Movie feature offers a one-stop video creation experience with various built-in templates and a professional editing assistant, eliminating the need for separate editing apps.

Redefine elegance with timeless style

Choose from two luxurious colors – Magic Maroon and Starry Purple, each offering a unique premium quality. 

The Magic Maroon edition is crafted using a unique Color Changing Fluorite AG Glass and nano-scale photoetching technique, delivering a soft touch and unique premium quality that transitions gracefully between light and shadow with its photochromic color-changing effect under sunlight or UV light.

The Starry Purple edition, inspired by the Milky Way and twinkling stars, transcends the ordinary. The Innovative 3D Starry Craft technique creates a glittering purple galaxy like no other, while the interplay of light on the back panel ensures it shimmers like the night sky with two milky ways and twinkling stars. 

Best screen in V Series history

The vivo V29 5G features a remarkable 120Hz 1.5K AMOLED display and a 6.78″ 3D curved screen, delivering stunning visuals to captivate users. With an impressive resolution of 1.5K and a super-high pixel density of 452 PPI, every detail comes to life with astonishing precision. 

You will also be immersed in a captivating visual experience as the V29 showcases 1.07 billion colors and a DCI-P3 cinema-grade color gamut. 

Furthermore, the vivo V29 5G prioritizes eye health and has received three SGS professional-grade eye protection certifications, underscoring commitment to visual well-being.

Delivering unrivaled performance

Powered by the Qualcomm Snapdragon® 778G mobile platform and Memory Booster (12 GB RAM + 8 GB Extended RAM), the vivo V29 5G ensures top-tier performance. Its Ultra Large VC Bionic Cooling System guarantees a smooth experience, whether you’re gaming or watching movies. 

With 80W FlashCharge and a 4600mAh battery, it charges rapidly. In just 18 minutes, you’ll go from 1% to 50%, ensuring your phone stays reliable and ready for extended use.

The vivo V29 5G also comes with IP54 certification. Whether you find yourself caught in a sudden rain shower or lounging by the pool, the vivo V29 5G stands strong with its splash-resistant and dust-resistant design, all within normal usage conditions.

Backed by over 60 laboratory reliability tests, the vivo V29 5G promises a worry-free experience in any situation.

Secure yours today with two storage options: 12GB + 256GB for only P24,999 and 12GB + 512GB for just P26,999. Purchase on the official vivo Philippines website or through popular e-commerce platforms like Shopee, Lazada and TikTok, as well as at physical stores across the country.

The vivo V29 5G is also available through Home Credit with a 0% interest rate, starting at just P1,002 per month for the 256GB ROM variant and P1,082 per month for the 512GB ROM variant.

Stay updated with the latest news and announcements from vivo Philippines by following on Facebook, Instagram, YouTube, X, and TikTok. 

 

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FDI net inflows jump to 3-month high in July   

Net inflows of foreign direct investments rose by 35.7% to $753 million in July. — REUTERS

NET INFLOWS of foreign direct investments (FDI) rose to its highest level in three months in July, amid improved investor sentiment.

Data released by the Bangko Sentral ng Pilipinas (BSP) on Tuesday showed FDI net inflows jumped by 35.7% to $753 million in July from $555 million in the same month a year earlier. It also rose by 55.6% from the $484-million inflows seen in June.

The July FDI inflows were the highest in three months or since $877 million in April.

Net Foreign Direct Investment“The jump in FDI inflows was likely due to positive risk sentiment which encouraged investments in emerging markets like the Philippines,” China Banking Corp. Chief Economist Domini S. Velasquez said in a Viber message.

Ms. Velasquez said market players had expected the US Federal Reserve to be nearing the end of its tightening cycle in July due to weaker US inflation and US jobs data.

The US Federal Reserve hiked its own policy rates by 25 basis points (bps) to 5.25-5.5% at its July 25-26 meeting. It has raised borrowing costs by a total of 525 bps since March 2022.

“Additionally, the launch of green lanes for strategic investments and the signing of the Maharlika Investment Fund could have also encouraged inflows,” she said.

President Ferdinand R. Marcos, Jr. signed Executive Order No. 18 in February, which aims to expedite, streamline, and automate government processes for strategic investments to attract more foreign investors.

In July, Mr. Marcos signed into law Republic Act No. 11954, which created the Philippines’ first sovereign wealth fund. The MIF is expected to be operational by yearend.

The BSP attributed the increase in FDI net inflows in July to nonresidents’ net investments in debt instruments more than doubling to $575 million from $276 million a year earlier.

However, equity and investment fund shares fell by 36.1% to $179 million in July from $279 million in the same month last year.

In July, reinvestment of earnings slid by 20.1% to $114 million from $142 million a year ago.

Equity inflows other than reinvestment of earnings dropped by 52.6% year on year to $65 million. This, as placements plummeted by 47.6% to $81 million, while withdrawals went down by 9.1% to $16 million.

For the first seven months of 2023, FDI inflows decreased by 14.7% to $4.66 billion from $5.47 billion in the same period last year.

Broken down, investments in debt instruments dropped by 15.2% to $3.28 billion in the January-to-July period.

Equity and investment fund shares went down by 13.6% to $1.38 billion as of July. Reinvestment of earnings declined by 13.1% to $573 million in the seven-month period.

Investments in equity capital other than reinvestment of earnings slipped by 14% to $808 million. Placements dipped by 4% to $1.004 billion, while withdrawals surged by 83% to $196 million.

“In the near term, the prevailing risk-off sentiment may dissuade investments in the Philippines. On a positive note, enacted legislations and reforms should help improve investor sentiment in the country,” Ms. Velasquez said. 

She cited recent laws such as the Retail Trade Liberalization Act, the Public Service Act, and the Regional Comprehensive Economic Partnership.

“We expect FDI inflows to be better in 2024 in line with a global economic recovery,” she added.

Last month, the BSP lowered its full-year projection for FDI net inflows to $8 billion from $9 billion previously. FDI net inflows are also projected to reach $10.5 billion in 2024. — Keisha B. Ta-asan

IMF still sees PHL as one of region’s strongest economies this year

A man arranges Christmas lanterns for sale in Las Piñas City. The International Monetary Fund projects 5.3% gross domestic product growth for the Philippines this year. — PHILIPPINE STAR/EDD GUMBAN

THE INTERNATIONAL Monetary Fund (IMF) expects the Philippine economy to remain one of the strongest performers in the region this year, despite its outlook of slower global economic growth

In its latest World Economic Outlook (WEO), the IMF expects the Philippines’ gross domestic product (GDP) to grow by 5.3% this year, below the 6-7% target of the government. This is also slower than the 7.6% GDP expansion in 2022.

The multilateral lender’s 2023 growth outlook for the Philippines is the second fastest among emerging and developing Asia, just behind India (6.3%).

It is ahead of China and Indonesia (both at 5%), Vietnam (4.7%), Malaysia (4%), and Thailand (2.7%).

Emerging and developing Asia’s growth is expected to average 5.2% this year from 5.3% previously. The region’s growth is seen to slow to 4.8% in 2024 from 5% previously.

The IMF said that growth prospects for emerging markets and developing economies will remain weak this year.

“Global activity bottomed out at the end of last year while inflation — both headline and underlying (core) — is gradually being brought under control,” the IMF said.

“But a full recovery toward pre-pandemic trends appears increasingly out of reach, especially in emerging markets and developing economies,” it added.

The IMF’s 5.3% forecast for the Philippines this year also makes it the fastest among five Association of Southeast Asian Nations (ASEAN) member countries.

The ASEAN-5 region is projected to grow by 4.2% this year and 4.5% next year.

Based on the WEO, the IMF projects 5.9% GDP growth for the Philippines in 2024, although this was already revised to 6% last week after the conclusion of the Article IV consultation mission to Manila.

This would still make the Philippines the second-fastest growing economy in emerging and developing Asia, after India (6.3%). The Philippines is also seen to be the fastest in ASEAN-5 next year, followed by Indonesia (5%) and Malaysia (4.3%).

IMF Representative to the Philippines Ragnar Gudmundsson said the multilateral lender’s latest projections for the Philippines were finalized during the Article IV mission, as the forecasts in the WEO update were done before the consultations.

“Our views on monetary policy are still in line with those shared last week,” he said in an e-mail. “Essentially, we made small adjustments to our projections based on our discussions and the latest data we received in the context of the mission.”

IMF Mission Chief to the Philippines Shanaka Jayanath Peiris earlier said the main downside risk to the IMF’s growth outlook for the Philippines is persistent inflation, which could prompt the central bank to resume monetary tightening.

The IMF expects Philippine inflation to rise to about 6% this year before declining to 3.5% in 2024. The BSP sees inflation averaging 5.8% this year and 3.5% in 2024.

The BSP has kept the key interest rate at a near 16-year high of 6.25% since March.

Mr. Peiris had said that a “higher-for-longer” policy rate path may be necessary until inflation falls within the target range. 

The IMF projects Philippine inflation to return to the 2-4% target by the first quarter of next year.

Meanwhile, the IMF expects global growth to slow to 3% this year, as the global economy continues to recover “slowly” from the pandemic, Russia’s invasion of Ukraine and the cost-of-living crisis. It also trimmed its 2024 outlook to 2.9%, from 3% previously (Related story: https://www.bworldonline.com/world/2023/10/10/550792/imf-says-global-economy-limping-along-cuts-growth-forecast-for-china/).

“Yet growth remains slow and uneven, with growing global divergences. The global economy is limping along, not sprinting,” the IMF said.

The IMF expects global inflation to rise to 6.9% this year, but ease to 5.8% in 2024. Inflation is not expected to return to target until 2025 in most economies around the world. — Keisha B. Ta-asan

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