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PLDT, Smart support creation of Connectivity Index Rating

Leading integrated telco network PLDT Inc. (PLDT) and its wireless subsidiary Smart Communications, Inc. (Smart) join calls for the creation of a Connectivity Index Rating to elevate internet quality in the country.

A Memorandum of Understanding (MoU) encouraging collaboration between private and public sectors to establish the Connectivity Index Rating was recently signed between the Department of Information and Communications Technology (DICT) and telcos. DICT Secretary Ivan John Uy led the signing ceremonies, which were also attended by representatives from PLDT and Smart led by PLDT SVP and Chief Technology Officer Jojo G. Gendrano.

The Connectivity Index Rating, which aims to set internet quality standards in public and private establishments, is backed by the government-mandated Private Sector Advisory Council (PSAC)’s Digital Infrastructure pillar, whose focus areas support the Government’s overall push for nationwide digitalization to narrow the digital divide.

“This initiative is aligned with the PLDT Group’s commitment to ensure the highest possible quality of internet and connectivity service for all Filipinos, as well as support the Government’s thrust to digitally transform the Philippines,” said PLDT and Smart President and CEO Alfredo S. Panlilio, one of the founding members of PSAC under the Digital Infrastructure group.

The MoU formalizes the agreement of telcos under PSAC to create a technical working group that will establish a benchmark which property owners and state agencies will adhere to in rightsizing connectivity based on demand. The Index seeks to encourage mall developers, property owners, local government units, government agencies and enterprises to right-size their fiber connectivity subscriptions to provide quality connectivity based on foot-traffic demand, as well as encourage the deployment of digital connectivity solutions, especially inside buildings.

The Index’s criteria include availability and consistency of WiFi and mobile network signal, in-room and common space coverage, and security of internet access.

This engagement is aligned with PLDT’s commitment to its aspirational multi-year transformation, with elevating customer experience as one of the key priorities. It also contributes to the PLDT Group’s endeavors to provide connectivity to all, and to anchor initiatives on the United Nations Sustainable Development Goals (UNSDG) particularly on SDG No. 9 – Industry, Innovation, and Infrastructure.

 


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Marcos: PHL will not cooperate with ICC in Duterte drug war probe

Presidential candidate Ferdinand "Bongbong" Marcos Jr. is seen at the miting de avance in Paranaque City, May 7. — PHILIPPINE STAR/KRIZ JOHN ROSALES

MANILA – Philippine President Ferdinand R. Marcos, Jr. said on Friday his government will not cooperate with the International Criminal Court’s (ICC) investigation into the thousands of killings committed during his predecessor’s ‘war on drugs’.

Mr. Marcos maintained the ICC has no jurisdiction over the Southeast Asian country, which withdrew from the ICC in March 2019.

“We will not cooperate with them in any way, shape or form,” Mr. Marcos told reporters, just days after appeals judges at the ICC rejected the Philippines’ attempt to block an investigation by the court’s prosecutors into the anti-narcotics campaign of former president Rodrigo R. Duterte.

Thousands of people were killed during anti-drug operations that ended in shootouts during Mr. Duterte’s six-year term, rights groups say.

Police have officially acknowledged roughly 6,200 deaths and reject accusations of systematic executions and cover-ups.

Mr. Marcos said the alleged crimes must be dealt with in the country as they were committed in Philippine territory.

The justice ministry has promised its own investigation into the drugs war will be fair.

“We continue to defend the sovereignty of the Philippines and continue to question the jurisdiction of the ICC in their investigations here in the Philippines,” Mr. Marcos said.

While the Philippines is no longer a signatory to the international tribunal, the ICC’s top prosecutor has said the court does have jurisdiction because the country was a party at the time the alleged crimes were committed. — Reuters

Switzerland sours Philippines’ World Cup debut with 2-0 win

FILIPINAS in come-from-behind loss to Kiwis in friendlies — PFF

DUNEDIN, New Zealand – Switzerland made a winning start to their Women’s World Cup campaign with a 2-0 victory over debutants Philippines at Dunedin Stadium on Friday, thanks to Ramona Bachmann’s first-half penalty and a close-range effort from Seraina Piubel.

Inka Grings’ side were awarded a penalty by VAR after midfielder Coumba Sow was caught by a stray boot from Jessika Cowart in the box late in the first half, with forward Ms. Bachmann coolly slotting the ball past goalkeeper Olivia McDaniel.

The Philippines, coached by former Matildas manager Alen Stajcic, made history as they became the first team from their country – male or female – to appear at the finals of a global soccer tournament.

And they were denied an early opener when midfielder Katrina Guillou’s strike was ruled out for offside.

Ana-Maria Crnogorcevic, Switzerland’s top scorer and most capped player, fired over from close range before Ms. Bachmann’s penalty put them ahead.

Switzerland dominated the second half and deservedly doubled their lead through midfielder Ms. Piubel, who smashed home in the 64th minute after Ms. McDaniel denied Mses. Crnogorcevic and Sow.

There were plenty of empty seats in the 30,000-capacity stadium on Friday, despite FIFA giving away 20,000 free tickets for games in Auckland, Hamilton, Wellington and Dunedin amid concerns about the slow pace of sales in New Zealand.

Switzerland top Group A on goal difference ahead of co-hosts New Zealand, who upset Norway 1-0 on Thursday. — Reuters

GCash and Bohol LGU launch ‘Sulong Turismo’

From left to right: Ray Berja, managing director and CFO of AirAsia; Ma. Kristina Gatal, owner of Dalikyat24; Mayor Jane Yap of the City of Tagbilaran; Luigi Reyes, GCash VP for Enterprise; Cathlyn Pavia, GCash AVP for Public Sector partnerships; Ulla Roqueza, Klook marketing head; Dr. Gelena Asis-Dimpas, chief regional tourism officer of the Department of Tourism; Kate Cruz, head of B2B Marketing; and Neil Trinidad, GCash chief marketing officer

Leading mobile wallet push for cashless digital tourism

As part of its vision to champion countryside development through digitalization, GCash, the leading mobile wallet in the Philippines, with the Provincial Government of Bohol, aims to revitalize the province’s tourism industry through their joint campaign, “Sulong Turismo.”

Sulong Turismo will help boost the tourism sector by integrating digital payment solutions in local tourism campaigns.

Local government units (LGUs) with popular tourist spots will be empowered to adopt convenient cashless payments in travel booking and accommodation, among others. By leveraging these digital tools and highlighting their benefits, the campaign hopes to enhance customer satisfaction, drive repeat visits, and invigorate the overall tourist experience.

GCash CMO Neil Trinidad donated via GCash Scan-To-Donate at the San Agustin Church in Panglao

“We are proud to be a part of the Sulong Turismo initiative. Financial inclusion towards economic growth has always been the main goal of GCash. We believe that this can be achieved through partnerships with both the public and private sectors, so that together we can present opportunities to business owners as well as the consumers, for a safer, secure, convenient, and profitable payment solutions that can boost the domestic tourism industry,” said GCash Chief Marketing Officer Neil Trinidad.

The campaign was officially inaugurated through a dynamic seminar and dialogue, where the advantages of a digitalized tourism industry were discussed, with a particular focus on LGUs with prominent tourist destinations.

During the event, the Department of Tourism (DoT) unveiled plans for infrastructure development, a dedicated tourism website, and a cutting-edge tourism app. These initiatives aim to incentivize tourism-related businesses to embrace digital payments, ultimately fostering growth and prosperity in the sector.

Tourism Secretary Christina Garcia-Frasco addressed the audience via video message during the event commending the efforts of GCash in promoting a digital ecosystem to support local tourism. Other distinguished guests who attended the event included Bohol Governor Hon. Erico Aristotle C. Aumentado, DoT Chief Tourism Officer Region 7 Dr. Gelena Asis-Dimpas, BSP Regional Head of Economic Affairs Greg Baccay, Philippine Information Agency Head Rey Anthony Chiu, Panglao City Vice-Mayor Noel Hormachuelos, Tagbilaran City Mayor Jane Yap, and GCash Chief Marketing Officer Neil Trinidad.

Cathlyn Pavia, GCash AVP for Public Affairs and Partnerships; Greg Baccay, BSP head of Regional Economic Affairs; Jessie Doctolero, regional director, Bureau of Local Government Finance; Atty. Kevin Soon, Bureau of Government Finance LTOOIV; Ma. Kristina Datal, owner of Dalikyat 24; and Roxan Mujeres, BSP regional affairs officer at the Public Market of Panglao, the first pit stop of the Sulong Turismo Circuit Tour

During the event, the concept of a tourism circuit was presented. A tourism circuit encompasses a strategic route or itinerary that connects multiple tourist attractions within a specific region. This structured approach promotes the region’s diverse offerings and entices tourists to spend more time discovering unique destinations.

“The active participation of local businesses, including micro, small, and medium-sized enterprises (MSMEs), market vendors, and transport groups, further exemplified the strong collaboration between the public and private sectors in propelling the region’s tourism industry. We are very happy to be the first municipality to have pioneered this initiative and we are hoping that other municipalities would follow our lead,” said Bohol Governor Hon. Erico Aristotle C. Aumentado.

By promoting the value of digital solutions in showcasing tourism sites, Sulong Turismo helps streamline operations, enhance accessibility and ensure sustainability, while offering a seamless and enjoyable experience for both tourists and businesses alike.

 


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Audit fails to win US backing for release of Afghan central bank funds – US officials

 – A US-funded audit of Afghanistan’s Taliban-run central bank has failed to win Washington’s backing for a return of bank assets from a $3.5 billion Swiss-based trust fund, said two US officials and a former US official, a move that would help ease the country’s financial crisis.

The audit has not changed the US Treasury’s view that the bank must make reforms before the department will support disbursements from the Afghan Fund to Da Afghanistan Bank, or DAB, as the central bank is known, said a US Treasury official on condition of anonymity.

The Swiss-based Afghan Fund was set up last year with half of about $7 billion in central bank funds that were frozen in the Federal Reserve Bank of New York in August 2021 after the Taliban took control of the country as the last foreign forces withdrew following two decades of war.

DAB must show that it is free “from political influence and interference,” said the Treasury official, referring to the need for professional bankers to replace the three Taliban officials who oversee the bank and are under US and UN sanctions.

It also must prove that it has “adequate” controls against money-laundering and terrorism financing and install a “reputable” independent monitor, said the Treasury official.

“Our assessment of DAB remains unchanged,” said one of the US officials. The two officials and the former US official, who has knowledge of the US position, spoke on condition of anonymity because of the confidentiality of the matter.

A Taliban administration spokesman and a spokesperson for the Afghan central bank did not respond to request for comment.

Concerns in Washington and other capitals about the bank‘s leadership and anti-money laundering safeguards are at the heart of a standoff over the Taliban’s demand for the return of DAB cash frozen in the United States and other countries after the Taliban seized power.

Because the four-member board that oversees the trust fund must approve disbursements unanimously, the support of its US government representative is essential.

Afghanistan remains mired in grave humanitarian and economic crises that some experts say has been worsened by US restrictions hampering DAB’s ability to perform key central bank functions, such as ensuring stable exchange rates and prices.

The audit, funded by the US Agency for International Development (USAID) and conducted by an outside contractor, examined DAB’s controls against money laundering and terrorism financing, and its banking oversight and payments departments, according to an April report by the US Special Inspector General for Afghanistan Reconstruction.

The findings have not been made public.

Calling the audit a “preliminary assessment,” the Treasury official said its “limitations” suggested that “more comprehensive third-party assessment efforts may be needed.”

Shah Mehrabi, an Afghan-American economics professor who is on DAB’s governing board and co-chairs the Afghan Fund board, said the audit – which he has not seen – was completed in March and currently is with the State Department.

The State Department declined to comment.

Mr. Mehrabi and his co-chair, Anwar ul-Haq Ahady, a former DAB governor and former finance minister, told Reuters that they would consider the findings once they are available.

Mr. Mehrabi said use of the Afghan Fund’s assets should focus on stabilizing prices and ensuring banks had enough liquidity, as the entire financial system was at risk from declining foreign donor funds to Afghanistan.

The other $3.5 billion in DAB assets frozen in the United States is being sought in lawsuits against the Taliban brought by families of victims of the Sept. 11, 2001, attacks on the United States. A US judge in February ruled against the plaintiffs who are appealing. – Reuters

China’s steps to boost sales of cars, electronics disappoint market

REUTERS

 – Chinese authorities announced measures on Friday intended to help boost sales of automobiles and electronics with the goal of shoring up a sluggish economy, but the steps failed to impress investors who have been clamoring for stronger stimulus.

Regions will be encouraged to increase annual car purchase quotas and efforts will be made to support sales of second-hand vehicles, said a statement on automobile consumption published by 13 government agencies including state planner National Development and Reform Commission.

As China‘s post-pandemic economic recovery slows, policymakers have identified the country’s automobile sector as a key lever which they want to use to shore up growth. In June, they unexpectedly extended a purchase tax break on new energy vehicles (NEVs) until 2027.

But domestic consumer demand has remained weak and the world’s largest auto market has been grappling with a price war triggered by Tesla in January that has since spread to more than 40 brands offering discounts on their vehicles.

In March, a top industry association urged the auto industry and authorities to cool the ‘price-cut hype‘ to ensure the healthy and stable development of the industry.

The Friday statement aimed at encouraging automobile consumption echoed this. “Localities must not roll out protectionist policies and avoid vicious competition,” it said.

A separate statement on supporting sales of electronics products said authorities would encourage scientific research institutes and market entities to actively apply domestic artificial intelligence (AI) technology to improve intelligence levels of electronic products.

The measures echoed similar ones announced by authorities in recent months and failed to boost the market, with shares in China’s automobiles index .CSI931008 down 0.3% and the electronics index .CSI930652 falling 0.6%, against a 0.1% rise in the benchmark index .CSI300.

Investors have said they are disappointed by China’s weak second quarter growth and want to see stronger stimulus, with some pinning their hopes on the Politburo meeting later this month. – Reuters

US to ‘beat up’ airlines when necessary for passengers – transport chief

L FILIPE C SOUSA-UNSPLASH

 – US Transportation Secretary Pete Buttigieg said he is willing to take a hard line with airlines when necessary as the Biden administration vows a sweeping upgrade in passenger consumer protections.

“We’re continuing to work to make sure that airlines live up to their obligations, which we will enforce,” Mr. Buttigieg told Reuters in a wide-ranging interview on Thursday.

US airlines have sparred with the administration in recent years over responsibility for flight delays, passenger rights, landing slots and other issues. Carriers and a federal audit say the Federal Aviation Administration must boost air traffic control staffing.

Mr. Buttigieg has opened numerous investigations and imposed fines for carrier misbehavior. President Joe Biden has often criticized airlines, saying in February “airlines can’t treat your child like a piece of baggage.”

While Mr. Buttigieg works with airlines when possible, he added: “We’re going to beat ’em up when we think that’s important to get passengers a better deal.”

Mr. Buttigieg said he is “in the middle of what I intend to be the biggest expansion of passenger rights in years. And there are tensions that are naturally going to come through with that.”

United Airlines CEO Scott Kirby recently suggested the Federal Aviation Administration had “failed us before changing his tone.

In late June and early July, United had higher cancellations that it blamed in part on air traffic control staffing issues.

“It was another scenario where you had the rest of the system seem to recover and one player struggling – so certainly something we’re looking at it,” Mr. Buttigieg said.

In late 2022, Southwest Airlines suffered an operational meltdown after bad weather that also affected peers was compounded by its legacy scheduling system. Buttigieg has an ongoing investigation into Southwest’s meltdown but he declined to discuss findings.

Buttigieg said the US airline industry has improved over last year, citing lower cancellation rates and adding “the schedules are more realistic, certainly the outcomes are better.”

The Transportation Department plans to propose new rules requiring airlines compensate passengers for significant flight delays or cancellations when carriers are responsible.

Mr. Buttigieg said the July 1 rollout of 5G C-Band has gone better than expected with minimal disruptions. Last month, he warned of potential delays for airplanes without upgraded radio altimeters.

Mr. Buttigieg said airlines were largely prepared but that “took a lot of pressure. It took multiple moments where we had to really just make sure they could read our body language that we really were serious… I don’t think the airlines believed us early on.”

The FAA has been without a Senate-confirmed administrator since April 2022 and a prior nominee withdrew in March.

Mr. Buttigieg said the White House was close to naming a new nominee. The White House has been considering naming former Deputy FAA Administrator Michael Whitaker, sources told Reuters, but Buttigieg declined to identify the expected nominee. – Reuters

Chinese hackers breach US ambassador’s emails -WSJ

A man holds a laptop computer as cyber code is projected on him in this illustration picture taken on May 13, 2017. — REUTERS

 – Beijing-linked hackers accessed US Ambassador to China Nicholas Burns’ email account in an espionage operation thought to have compromised at least hundreds of thousands of individual US government emails, the Wall Street Journal (WSJreported on Thursday.

Daniel Kritenbrink, the assistant secretary of state for East Asia, was also hacked in the wider spying operation disclosed earlier this month by Microsoft, the report said, citing people familiar with the matter.

Asked about the reported breach of the two diplomats’ accounts, the State Department declined to give any details and said its investigation of the spying operation was ongoing.

Before the WSJ report appeared, Mr. Kritenbrink was asked at a congressional hearing on US China policy whether he could rule out that his or his staff’s emails were targeted in the Microsoft hack.

I can’t comment on an investigation that’s underway being conducted by the FBI, but no, I will not rule it out,” Mr. Kritenbrink said.

Mr. Burns and Mr. Kritenbrink join US Commerce Secretary Gina Raimondo as the only publicly named victims of the espionage campaign, which prompted a warning by Washington’s top diplomat to his Chinese counterpart.

“China firmly opposes and combats cyber attacks and cyber theft in all forms. This position is consistent and clear,” Liu Pengyu, spokesperson for China’s embassy in Washington, said in an emailed response to Reuters.

“Identifying the source of cyber attacks is a complex technical issue. We hope that relevant sides will adopt a professional and responsible attitude … rather than make groundless speculations and allegations.”

Microsoft said last week that Chinese hackers misappropriated one of its digital keys and used a flaw in its code to steal emails from US government agencies and other clients.

The company did not immediately return a message seeking comment on the WSJ report.

The breach has thrown Microsoft’s security practices under scrutiny, with officials and lawmakers calling on the Redmond, Washington-based company to make its top level of digital auditing, also called logging, available to all its customers free of charge.

Microsoft said in a statement late on Thursday that it was taking the criticism on board.

Last week, White House National Security Council spokesperson Adam Hodge said an intrusion in Microsoft’s cloud security “affected unclassified systems,” without elaborating.

“Officials immediately contacted Microsoft to find the source and vulnerability in their cloud service,” Mr. Hodge added.

The State Department “detected anomalous activity” and “took immediate steps to secure our systems,” a department spokesperson said in a statement at the time. – Reuters

Rose, jasmine teas flourish in Indian push for renewable energy

STOCK PHOTO | Image by _ Artoxana from Pixabay

 – Shivraj Nishad spreads jasmine and rose flowers onto trays in his village in northern India to dry petals used for making tea, aided by a solar-powered dryer in what may be a nascent rural energy revolution.

Mr. Nishad, 29, returned home to cultivate flowers on a family plot in Sheikhpur by the Ganges river in Uttar Pradesh state three years ago, after becoming frustrated by long hours as a traveling representative for a pharmaceutical company.

His micro-business breakthrough came when he invested savings of 60,000 rupees ($732) to buy a solar dryer, which includes two solar panels that power fans to waft warm air over thousands of flowers in batches of 60 kg (132 lb).

The covered dryer halved the traditional open-air drying time, doubling production of petals sold to make blue tea and other floral teas. That enabled Mr. Nishad to buy from farmers far beyond his 0.6 acre (0.2 hectare) family plot.

“The dryer helped me establish trust in my business,” he said, spreading out lapis blue pea flowers and white Arabian jasmine, infusing the warm afternoon air with perfume.

India is seeking innovators like Mr. Nishad as tiny contributors towards a national goal of installing 500 GW of energy from non-fossil sources by 2030, part of wider UN targets to end poverty and fight climate change.

The world’s most populous nation, India is achieving slow but steady growth in businesses that do not rely on an electricity grid, including solar dryers, biomass-powered cold storage, and solar silk-reeling machines.

But high costs, the difficulty of obtaining clean energy technology, farmers’ lack of access to markets and inadequate information for budding entrepreneurs remain big barriers.

Mr. Nishad now sells 500-1,000 kg of flowers per month, worth up to 400,000 rupees, with profits of about 100,000 rupees. The business also helps hundreds of farmers in the region and provides at least 10 year-round local jobs, half of them for women.

 

MONSOON BOON

Mr. Nishad’s dryer, comprising trays placed on a metal stand under a roof of polycarbonate sheets with a total area of about 5 square meters (54 square feet), is especially valuable during the monsoon when flowers usually get wasted.

“The solar dryer saved me from getting demoralized in rainy months,” he said. Mr. Nishad can dry two batches of flowers a day, against just one using open-air drying.

A May report launched by the Indian renewables minister R.K. Singh identified 12 promising off-grid technologies, including solar pumps and solar dryers. These technologies could help 37 million people in India, the report said.

Prepared by the Council on Energy, Environment and Water, an Indian think-tank, the report said that the 12 “decentralized renewable energy” (DRE) technologies can generate business of $50 billion for manufacturing enterprises alone.

At the time, Singh said India might soon come out with a specific policy to promote DRE technologies.

But about 90% of India’s farmers are smallholders, earning about 10,000 rupees per month. Investments in renewable energies are often unaffordable, except for groups of farmers.

An exception, Mr. Nishad has set up a small centre outside the village, where farmers from the nearby area come to sell their plucking twice – early morning and evening. These fresh flowers need to be dehydrated within 12-15 hours.

While the covered dryer ensures the dried flowers are free of contaminants like dust or bird droppings, demand is so high that he also uses open-air drying. That means extra costs to clean the openly-dried flowers before packaging.

“If these dryers become more affordable for all small farmers, the quality of their product will increase, pushing up their profits also,” he said.

 

LEMONS IN COLD STORAGE

Elsewhere in India, lemons are among farm products benefiting from the drive for renewable energy.

Cold stores, or giant fridges, powered by biomass can extend lemons’ shelf life, allowing farmers to sell when prices are higher than during a glut in the months after harvest.

“The cold storage is helping all farmers from getting devastated each year,” said Jalinder Raut, a member of a Farmer Producer Organization (FPO) in Indapur, in west India’s Maharashtra state.

His FPO built a 20-tonne capacity cold storage for about 450,000 rupees, with a 50% subsidy from the producer and a three-year loan from the local cooperative bank, he said.

In December, the market price for lemons tumbled to 3 rupees per kg but rose to 115 rupees by March. By waiting it out, Mr. Raut said the FPO booked a profit of 320,000 rupees.

And, he added, the biomass used to generate electricity is cheaper and more reliable than power from the local grid. “The profits that we are earning and savings on the running costs will help us quickly pay off the loan,” Mr. Raut said.

For India, the challenge is expanding such technologies from 1,000 farmers to 10 million farmers, said Simmi Sareen, director of Unitus Capital, a social and environmental impact investment firm.

She said that India needed to promote ways to cover high upfront costs by creating leasing models, rather than government subsidies. And more education was needed for farmers about renewables and how to sell their products.

William Brent, chief marketing officer of Husk Power, a microgrid operator company active in Asia and Africa, said rural communities needed more reliable electricity.

He said there was a huge untapped opportunity for partnership between the public electricity distribution companies and the private sector mini-grid developers.

Flower farmer Nishad, inspired by the venture investment reality TV show “Shark Tank”, wants to create a farmer-led brand of food products and is looking for land to set up a processing unit.

“I will only use renewable energy-powered appliances,” he said.

He also dreams of expanding his flower business to a 500 kg capacity dryer that costs about 300,000 rupees, five times the cost of his existing 60 kg dryer.

“With the income I earn, a 500 kg dryer is out of my reach,” Mr. Nishad said, while loading a tray full of fresh blue pea flowers. – Reuters

India imposes major rice export ban, triggering inflation fears

SANDY RAVALONIAINA-UNSPLASH

 – India on Thursday ordered a halt to its largest rice export category in a move that will roughly halve shipments by the world’s largest exporter of the grain, triggering fears of further inflation on global food markets.

The government said it was imposing a ban on non-basmati white rice after retail rice prices climbed 3% in a month after late but heavy monsoon rains caused significant damage to crops.

India accounts for more than 40% of world rice exports, and low inventories with other exporters mean any cut in shipments could inflate food prices already driven up by Russia’s invasion of Ukraine last year and erratic weather.

“In order to ensure adequate availability of non-basmati white rice in the Indian market and to allay the rise in prices in the domestic market, the government of India has amended the export policy,” the food ministry said in a statement that cited a 11.5% increase in retail prices over 12 months.

The category impacted, non-basmati white and broken rice, accounted for around 10 million tons of a total of 22 million tons of Indian rice exports last year.

The government clarified late on Thursday that parboiled rice, which represented 7.4 million tons of exports in 2022, was not included in the ban.

The move demonstrates the sensitivity of the government of Prime Minister Narendra Modi to food inflation ahead of a general election nearly next year.

His administration has extended a ban on wheat exports after curbing rice shipments in September 2022. It also capped sugar exports this year as cane yields dropped.

“India would disrupt the global rice market with far greater velocity than Ukraine did in the wheat market with Russia’s invasion,” B.V. Krishna Rao, president of the Rice Exporters Association told Reuters.

Rice is a staple for more than 3 billion people, and nearly 90% of the water-intensive crop is produced in Asia, where the El Nino weather pattern usually brings lower rainfall. Global prices are already hovering at their highest level in 11 years.

“The sudden ban on exports would be very painful for the buyers, who can’t replace the shipments from any other country,” Mr. Rao said.

While Thailand and Vietnam don’t have enough inventories to plug the shortfall, African buyers would be most affected by India’s decision, Rao said, adding that many countries will urge New Delhi to resume shipments. Other top buyers of Indian rice include Benin, Senegal, Ivory Coast, Togo, Guinea, Bangladesh and Nepal.

The ban would be effective from July 20, but vessel under loading would be allowed for exports.

 

WEATHER DAMAGE

Heavy rain in northern parts of India over the last few weeks has damaged newly planted crops in states including Punjab and Haryana, and many farmers have had to replant.

Rice paddy fields in northern states have been submerged for over a week, destroying newly planted seedlings, and forcing farmers to wait for waters to recede so they can replant.

In other major rice-growing states, farmers have prepared paddy nurseries but have been unable to transplant the seedlings due to inadequate rainfall.

The area under rice cultivation had been expected to increase after New Delhi raised the rice purchase price, but farmers so far have planted rice paddy on an area 6% smaller than in 2022.

This week, prices of rice exported from Vietnam, the world’s third-largest exporter after India and Thailand, soared to their highest in more than a decade on growing supply concerns due to El Nino.

Vietnam’s 5% broken rice RI-VNBKN5-P1 was offered at $515-$525 per metric ton – its highest since 2011. India’s 5% broken parboiled variety RI-INBKN5-P1 hovered near a five-year peak at $421-$428 per metric ton.

Buyers may move to Thailand and Vietnam, but their 5% broken rice could cost $600 per metric ton, said one European trader.

China and the Philippines, who generally buy Vietnamese and Thai rice, will be forced to pay substantially higher prices, another European dealer said. – Reuters

June BoP deficit narrows to $606M

THE PHILIPPINES’ balance of payments (BoP) position remained in a deficit in June, as the National Government (NG) settled foreign currency debt obligations.

Data from the Bangko Sentral ng Pilipinas (BSP) showed the BoP deficit narrowed to $606 million in June from the $1.6-billion gap in the same month last year.

Month on month, the BoP gap widened from the $439-million deficit in May.

“The BoP deficit in June 2023 reflected outflows arising mainly from the National Government’s net foreign currency withdrawals from its deposits with the BSP to settle its foreign currency debt obligations and pay for its various expenditures,” the central bank said in a statement.

The BoP is a gauge to show the country’s economic transactions with the rest of the world at a given time. A deficit means more funds exited the economy than went in, while a surplus shows more money flowed into the country.

Despite incurring a deficit for the last three months, the BoP position stood at a surplus of $2.3 billion in the first six months of 2023. This is a reversal of the $3.1-billion deficit in the same period in 2022.

“Based on preliminary data, the cumulative BoP surplus reflected inflows that stemmed mainly from personal remittances, net foreign borrowings by the NG, trade in services, and foreign direct investments,” the central bank said. 

Security Bank Corp. Chief Economist Robert Dan J. Roces said the narrower deficit in June compared with a year ago reflects the stability of the Philippine peso as well as easing inflation, which made import costs cheaper.

Inflation slowed to 5.4% in June from 6.1% in May, marking the fifth straight month inflation declined since it peaked at 8.7% in January. For the first six months of the year, inflation averaged 7.2%.

The peso closed at P55.20 on June 30, strengthening by 1.7% or 95 centavos from its P56.15 finish on May 31.   

However, a slowdown in China’s economy affected the country’s exports, Mr. Roces said.

In the first five months of the year, exports fell by 11.5% to $28.21 billion. This brought the trade deficit to $23.99 billion in the January-to-May period, nearly flat from a year ago.

“The resilience in remittances also was a factor, considering there’s an economic slowdown and elevated inflation in the major host economies; this helped boost the country’s foreign exchange reserves,” Mr. Roces added.

The BSP also noted that the BoP position reflects the final gross international reserves (GIR) level of $99.4 billion as of end-June, 1.2% lower than the $100.6 billion as of end-May.

The GIR represents 7.3 months’ worth of imports of goods and payments of services and primary income.

It can also cover up to 5.7 times the country’s short-term external debt based on original maturity and four times based on residual maturity.

“Short-term debt based on residual maturity refers to outstanding external debt with original maturity of one year or less, plus principal payments on medium- and long-term loans of the public and private sectors falling due within the next 12 months,” the BSP said.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the BoP position could be supported by further narrowing of the trade deficit amid a decline in the prices of oil and other commodities imported by the Philippines. 

The proposed $2-billion retail bonds to be offered by the government in the third quarter will also support the BoP position and dollar reserves in the latter part of the year, Mr. Ricafort said.

Finance Secretary Benjamin E. Diokno earlier said the government is planning to launch a retail dollar bond offering, marketed to overseas Filipino workers and the investing public.

The Philippines’ last retail dollar bond sale was in 2021, when it raised $1.6 billion.

Last month, the BSP said it expects the country to post a narrower BoP deficit this year as trade and capital flows were seen to moderate amid weak global demand.

The BSP revised its BoP deficit forecast to $1.2 billion, or equivalent to -0.3% of gross domestic product (GDP), lower than the previous projection of a $1.6-billion gap (-1.3% of GDP) in March.

The BSP also projected a narrower current account deficit of $15.1 billion (-3.4% of GDP) this year from $17.1 billion (-4% of GDP) previously.

The country’s GIR is expected to hit $100 billion by end-2023 and $102 billion by end-2024. — Keisha B. Ta-asan

Strong domestic demand to support PHL growth outlook 

Commuters walk along Taft Avenue in Manila, July 13, 2023. — PHILIPPINE STAR/ EDD GUMBAN

By Luisa Maria Jacinta C. Jocson, Reporter

STRONG domestic demand and easing inflation will support the continued growth of the Philippine economy, but faces risks from the El Niño weather phenomenon, the Asian Development Bank (ADB) said.

“Current trends align with our forecasts of continued strength in domestic demand countering the weakness in external demand,” ADB Country Director for the Philippines Pavit Ramachandran said in an e-mail.

The Philippines is a domestic demand-driven country, with household spending contributing to around three-fourths to gross domestic product (GDP).

The ADB expects Philippine GDP to expand by 6% this year and 6.2% in 2024 — the fastest growth in Southeast Asia.

Economic managers are targeting 6-7% GDP growth for this year and 6.5-8% for 2024.

“The downtrend in inflation, as earlier projected, bodes well for domestic investment and consumption,” Mr. Ramachandran said.

Headline inflation settled at a 14-month low of 5.4% in June.

For the first six months of the year, inflation averaged 7.2%, well above the central bank’s 5.4% full-year forecast.

The ADB sees Philippine inflation averaging 6.2% this year and easing to 4% in 2024.

However, Mr. Ramachandran said that the country is still vulnerable to risks such as the El Niño weather pattern.

“While inflationary pressures have dissipated, risks remain, including an El Niño disruption which could affect agriculture production and food supply,” he said.

The El Niño weather pattern is seen to persist in the Philippines until the first quarter of 2024 and is showing signs of strengthening in the coming months. El Niño increases the likelihood of below-normal rainfall conditions, which could bring dry spells and droughts in some areas of the country, according to the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA).

“These changes in weather patterns could again raise food supply challenges and place upward pressure on global and domestic prices,” Mr. Ramachandran added.

National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan on Wednesday said that the impact of El Niño on growth will not be significant.

“The impact is not very significant in terms of GDP. Our assessment of the impact of the El Niño given the data we have received from PAGASA is that it is not going to be substantial,” he said at a separate briefing on Wednesday.

However, Mr. Balisacan emphasized the need to support the agriculture sector.

“Agriculture is where a lot of the poor are working. We have to be extra active there. We have to be proactive in providing assistance measures to ensure that they are taken care of, especially in relation to access to inputs, even for maintenance, like some form of subsidies,” he said.

The Philippines’ last El Niño weather event was in 2019, with agricultural damage estimated at up to P8 billion.

The country’s worst El Niño episode was in 1998. That year, the economy shrank by 0.5% while agricultural production declined by 7%.

Aside from El Niño, Mr. Ramachandran said a spike in global inflation and geopolitical tensions may also affect the Philippine growth outlook.

“On the external front, the possibility of higher-than-expected global inflation and escalation of geopolitical tensions could further disrupt global activity, further tempering external demand,” he said.

In its Asian Development Outlook July 2023, the ADB kept its 2023 growth forecast for developing Asia at 4.8%. It trimmed its growth estimate for next year to 4.7% from 4.8% in April.

“Uncertainty persists over the Russian invasion of Ukraine, and any escalation there could renew energy and food security challenges and rekindle inflation,” it said.