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NBA, vivo announce multi-year marketing partnership in the Philippines

vivo returns as Official Smartphone of the NBA in the Philippines

The National Basketball Association (NBA) and vivo today announced a multi-year marketing partnership that sees vivo return as the Official Smartphone of the NBA in the Philippines.

The agreement builds on a previous marketing partnership in the Philippines that saw vivo serve as an official partner of the Jr. NBA – the league’s global youth basketball program for boys and girls – and NBA 3X Philippines, a 3-on-3 basketball tournament featuring men’s and women’s teams, interactive fan activities and authentic NBA entertainment.

Through the collaboration, vivo will be the Presenting Partner in the Philippines of NBA All-Star Voting – a platform that gives fans the opportunity to vote for the NBA All-Star Game starters via the NBA App and NBA.com – and return as an official partner of NBA 3X Philippines presented by Mountain Dew, which will take place later this year.

Under the new agreement, select vivo stores will feature dedicated NBA sections, which will display vivo smartphones streaming NBA games and programming on NBA League Pass, the league’s premium live game subscription service available on the NBA App.

In addition, vivo will launch promotions that will provide fans in the Philippines with the chance to win authentic NBA prizes. The NBA and vivo will also co-develop content for the NBA’s localized Facebook and TikTok pages in the Philippines.

“We’re thrilled to welcome vivo back to our growing roster of marketing partners in the Philippines and align with a brand that shares our commitment to innovation,” said NBA Philippines Senior Director of Global Marketing Partnerships Mae Dichupa. “Our collaboration with vivo represents an excellent opportunity to elevate the NBA experience across digital, retail and events, and showcase vivo’s smartphones as a convenient and ideal device for fans to immerse themselves in the excitement of the NBA.”

“Our passion for innovation extends beyond the confines of technology, and we recognize that sports provide an ideal platform to bring communities together and inspire positive change in the way we live our lives,” said vivo Philippines management. “This guiding principle reinforces our efforts to collaborate with sports organizations such as the NBA that enable us to foster a deeper connection between our brand and the world of sports.”

Fans in the Philippines can shop for official NBA merchandise at the NBA Stores at SM Megamall and SM Mall of Asia and at NBAStore.com.ph. For all the latest NBA news and updates, fans in the Philippines can visit www.nba.com, download the NBA App, and follow the NBA on Facebook, X, and TikTok.

For more information on vivo Philippines and vivo’s latest product offerings, visit vivoglobal.ph and follow the official vivo accounts on Facebook, X, Instagram, TikTok, and YouTube.

 

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Marcos sets ceiling on rice prices

President Ferdinand R. Marcos, Jr. speaks at an event with the Filipino community in Washington, D.C., May 1, 2023. — KRIZ JOHN ROSALES/PPA POOL

Philippine President Ferdinand R. Marcos, Jr. has set price ceilings for rice, his office said on Friday, to keep the cost of the national staple in check and deal with an “alarming increase” in retail prices.

The price ceiling for regular milled rice was set at P41 ($0.72) per kilogram, while the price for well-milled rice was set at P45 ($0.79) per kg, with the mandated ceilings to remain in effect until lifted by the president.

Local and imported well-milled rice are currently sold at between P47 to P56 in the capital region, while local and imported regular-milled are priced at P42 to P55 as of Aug. 30, the agriculture ministry said.

Despite a steady supply of rice, authorities have reported “widespread practice of alleged illegal price manipulation, such as hoarding by opportunistic traders and collusion among industry cartels in light of the lean season,” the presidential office said in a statement.

The Southeast Asian country is also feeling price pressures from global events like the Russia-Ukraine conflict, India’s ban on rice exports, and unpredictability of oil prices, it added.

Mr. Marcos, who is also the agriculture minister, earlier this week ordered authorities to double efforts to hunt down rice hoarders and take steps to curb rice inflation, which hit 4.2% in July, the highest since 2019.

The Philippines is one of the world’s biggest importers of the grain and its retail rice prices climbed further last month, with some varieties surging as much as 25% in some markets in and around the capital.

The Philippines’ rice supply for the second half will reach 10.15 million metric tons, of which 7.2 tons is the expected yield from local output. Along with imports and existing inventory, it will allow the country to end the year with stocks good for 64 days of domestic demand.

A farmers’ group welcomed the move.

“There is no reason for any price increase these past weeks as there is no rice shortage in the country,” the group, SINAG, said in a statement.

Inflation has remained well above the Philippine central bank’s target range of 2% to 4%, keeping it on its toes even as it held the policy rate steady for three straight policy meetings, after a series of hikes totaling 425 basis points.

“Monetary policy has little ability to control food inflation, but the Bangko Sentral ng Pilipinas may need to act if second-round effects become prominent and inflation expectations are de-anchored,” ANZ economists said in an Aug. 25 note, using the official name of the central bank. — Reuters

Santé’s 16th anniversary press conference ignites the ‘Rise Up’ movement: Empowering lives and inspiring transformation

From left to right: Santé's CEO Joey Marcelo, COO Mike Sibayan, and Marketing Director Lorelie Acop come together at Santé’s International Headquarters to discuss the brand’s 16th-anniversary initiatives.

Introducing a new product to the market and honing a brand is no easy task. Still, in sixteen years, Santé has successfully expanded its operations globally, increased its business owners’ reach and numbers to keep up with the demand for barley nutraceuticals, and diversified its product line and offerings to its customers and business partners.

With its mantra of Live More. Do More., Santé continues its goal of offering Filipinos high-quality barley grass products to enhance their health and well-being, while also serving as a preferred partner for achieving a better life. Within sixteen years, Santé has dominated the barley grass industry and successfully risen up to be on top, positioning the brand as the barley authority that Filipinos can take pride in.

This was the theme of Santé’s 16th Anniversary, which kicked off with a press conference at the Santé International Headquarters in Silang, Cavite on Monday, Aug. 14. Guests gathered to commemorate Santé’s significant milestones from its humble beginnings to where the brand is now: at the top, yet still rising up to the challenge of making an impact on people’s well-being and quality of life, extending beyond borders and touching the lives of individuals across countries and cultures to help them live better lives.

Santé CEO Joey Marcelo welcomes guests to Santé’s 16th Anniversary Press Conference.

During the press conference, Joey Marcelo, Santé’s chief executive officer, unveiled Santé’s expansion plans to tap more markets globally, emphasizing Santé’s strength as a Filipino brand with an impactful global presence, currently operating in 10 countries. Mr. Marcelo noted that the pandemic has led to a demand for health and wellness products, and this trend will continue even with the country’s economy on a path to full recovery. Santé is fully prepared to address this demand by further expanding its business owners’ reach through retail and global expansion, providing Filipinos all around the globe with the necessary support to live better lives.

“We are more than just a Filipino company when we uplift our business partners, we are also uplifting the communities they belong to through our quality products and services,” Mr. Marcelo said. Santé, at its core, is a Filipino company, from its foundation to its operations, the brand aims to help fellow countrymen wherever they are across the globe. “It’s definitely a brand that the Philippines can be proud of, and our track record speaks for itself,” Mr. Marcelo added.

Also present in the press conference was Santé’s Chief Operating Officer Mike Sibayan, who highlighted the strength of Santé’s business operations and supply chain. With direct selling at its core, business partners are provided a self-owned entrepreneurial platform with flexible working hours, additional income, and the benefits of actual employees in a standard company.  “This, along with Santé’s global presence, our partners are exposed to various cultures and learning best practices from a diverse set of individuals all united under Santé’s vision of a healthy lifestyle and financial security make the brand the premier employer of choice,” Mr. Sibayan added.

The event also highlighted the company’s 16th-anniversary gathering for its business owners, partners, and special guests, which will take place on Aug. 15 at SMX Convention Center. Hosted by James Deakin, the event will treat Santé’s loyal partners with a day of inspiration through its guest speakers, Angeline Tham Xiwen, the founder of Angkas; Chinkee Tan, the Pambansang Wealth Coach; and influential motivational speaker and author Francis J. Kong.

Santé’s event will also feature its elite leaders who achieved a financial boost through their business partnership with the company. “We will also be recognizing significant members who have delivered growth and amazing results through their business with Santé,” said Marketing Director Lorelie Acop. “Santé is all about empowering our partners, which is why we dedicated a special gathering for them to recognize their achievements, which helped the company Rise Up to its status today,” Ms. Acop added.

To further celebrate its 16 years of success, Santé gifted sixteen lucky attendees with sixteen prizes, ranging from a weekend getaway at Santé’s Leisure Club, an overnight stay at Pico de Loro Santé, Santé’s yacht experience, and a three-month membership in Santé’s Fitness Lab: showcasing Santé’s further ventures outside of nutraceuticals that showcase the brand’s commitment to holistic wellness.

Santé continues to be at the forefront of revolutionizing health and wellness in the Philippines for 16 years through its business operations and ventures, reflecting Santé’s unwavering commitment to transforming lives and communities. By announcing its global expansion plans, sharing insights into its premier employer status, and setting the stage for the SMX convention, Santé is poised to create waves in the health and wellness industry.

 

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Asiamoney awards Standard Chartered Bank as Best Bank for Diversity and Inclusion

Standard Chartered Bank (SCB), the oldest international bank in the country, has been named Best Bank for Diversity and Inclusion (D&I) in the Philippines at the 2023 Asiamoney Awards, announced yesterday. The bank was cited for its commitment to promote economic inclusion by lifting participation of the youth, especially young women, in the community through education and livelihood support.  Futuremakers by Standard Chartered is the bank’s global initiative to tackle inequality by supporting disadvantaged young people to learn new skills, increase their employability or provide them access to funding to start their own businesses.  SCB Philippines currently works with the largest microfinance institutions in the country to provide equitable access to financial support for women-led micro and small businesses nationwide.

Leader in diversity and inclusion

SCB has received numerous accolades in recent years for its policies in promoting diversity and inclusion.  It ranked 36th in the 2022 Equileap Top 100 organizations for gender equality globally; 7th in the top 10 financial sector companies; recognized on the Bloomberg Gender Equality Index 2022 for the seventh year in a row; and ranked 73rd in the Refinitiv D&I Index Score 2022 for the second time in a row. 

For years, SCB has embedded diversity and inclusion into its organizational DNA, celebrated female role models and allies to reaffirm its commitment to gender equality.

In 2018, SCB signed a statement of support for the UN Women Empowerment Principles to reinforce its ongoing commitment to gender equality.  The bank also signed the UK HM Treasury Women in Finance Charter and has seen a positive trend in female representation in its senior leadership roles.  As of end of 2022, women represented 32% of Standard Chartered Bank’s senior leadership roles across its markets, and working to achieve its global target of 35% by 2025.

As part of its commitment to fostering an equitable and inclusive culture, the bank continuously looks at how progressive, purpose-led benefits can improve employees’ experience and help them achieve their potential.

SCB offers industry-leading policies and benefits. It is the only bank which offers its employees minimum 20-week paid maternity and parental leaves, irrespective of gender, relationship status or how a child comes to permanently join an employee’s family.   This is part of the bank’s commitment to address globally prevalent societal norms around traditional roles, improve workforce participation, and provide options to those who want to take up shared childcare responsibilities.

Even before the pandemic, SCB already has a flexible workplace policy in place.  The bank has implemented a permanent hybrid working model giving its employees the opportunity to work flexibly without sacrificing client service delivery and commitments. This data-led approach to work combines remote and office-based working with greater flexibility in working patterns and locations with the objective to redesign jobs, enable its workforce and prepare for the way forward.

SCB’s policy on flexible working practice and enhanced employee benefits is aligned with its aspiration to be a human organisation and a great place to work.  Following the global roll-out of the policy, every employee across all its markets now has the opportunity to balance their professional and personal responsibilities.

Rowena Kapunan, Interim Chief Executive Officer, Standard Chartered Bank Philippines, said: “An inclusive environment enables us to bring the best out of our people. We are proud to take a holistic approach in empowering our staff to succeed at work and in their private lives through our enhanced policies, and are confident that an environment that genuinely respects professional and personal balance is a remarkable competitive edge.”

Gender inclusive Philippines

In the World Economic Forum (WEF) 2023 Global Gender Gap Report released in June, Philippines ranked 16th place in gender equality among 146 countries in the world, based on 4 categories: economic participation and opportunity, educational attainment, health and survival, and political empowerment.

SCB Philippines has 59:41 women to men gender ratio, and women hold 73% of the bank’s senior management positions.

SCB Philippines was recognized as the 2021 UN Women WEP Award Champion for Leadership Commitment, and in 2022 won 1st Runner Up in the Gender Inclusive Workplace category.

The bank believes that an inclusive culture is central to enabling its unique diversity and driving performance. It values and celebrates diversity across its markets and ensures that all employees are entitled to be treated fairly, equally and with respect.   By focusing on employee wellbeing, Standard Chartered strives to be a differentiated workplace and best place to work.

 

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Countdown to greatness: Celebrating excellence with our valued sponsors

In just a matter of weeks, the highly anticipated Philippine Finest Business Awards and Outstanding Achievers will set the stage ablaze, honoring exceptional achievements and remarkable talent. We would like to take this moment to highlight and express our deepest gratitude to our esteemed sponsors who have made this event an unforgettable celebration of excellence.

As we count down the weeks, let us shine the spotlight on MountainTop Coffee Beans, a company known for its unwavering commitment to quality and innovation. Its support has elevated the event to new heights, aligning its brand with the pursuit of excellence and success.

Rich B Health and Beauty Products Trading, a beacon of beauty and wellness, has joined hands with us on this exhilarating journey. Its dedication to enhancing lives and empowering individuals perfectly complements the essence of the Philippines Finest Business Awards. 

The Hexagon Events Place, our esteemed venue partner, has created the perfect setting for this grand celebration. With its exquisite facilities and attention to detail, it has ensured that every moment of the event is filled with glamour and enchantment.

JP Catering Services renowned for its culinary mastery, will tantalize our taste buds and create a gastronomic experience like no other. Its passion for delighting guests with exceptional flavors and impeccable service adds a touch of elegance to the occasion.

Densol’s Catering, a company that has catered to different types of events including social events and corporate events, has taken its services to the next level by bringing to the table premium and opulent event styling.

Bhylinn’s Modern Fashion, and Gown and Events Management by Touting, our valued primary sponsors, has also played an integral role in making this event a resounding success. Its support and commitment to excellence have added even more vibrancy and elegance to the Philippines Finest Business Awards.

Together, our sponsors have woven a tapestry of support, setting the stage for greatness and transforming the Philippines Finest Business Awards into an extraordinary event that will leave a lasting impression.

Join us as we honor outstanding achievers, recognize excellence, and celebrate the very best in the business industry. The countdown has begun, and the excitement is palpable. Prepare to be mesmerized as dreams are realized, and success stories are unveiled.

Mark your calendars for the grand event on Sept. 8, 2023 at The Hexagon Events Place in Quezon City. Stay tuned to our social media channels for updates, behind-the-scenes glimpses, and exclusive content leading up to the big day.

To our valued sponsors and partners, MountainTop Coffee Beans, Rich B Health and Beauty Products Trading, The Hexagon Events Place, JP Catering Services, Densol’s Catering, Bhylinn’s Modern Fashion, and Gown and Events Management by Touting, we extend our heartfelt appreciation for your unwavering support, dedication, and belief in the power of recognizing excellence. You have truly made a remarkable impact on this incredible journey.

Get ready to witness greatness, as the Philippine Finest Business Awards propels us into a world of achievements and triumphs. Let the countdown continue, as we embark on a celebration like no other!

Follow us on social media for the latest updates and join the conversation using #PhilippinesFinestBusinessAwards.

 

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Citicore Renewable awarded as best company to work for in Asia

Citicore Renewable Energy Corporation (CREC) bags the Best Companies to Work for in Asia Award and Most Caring Company Award by international award-body HR Asia on 22 August 2023 in Mariott Hotel, Metro Manila.

Citicore Renewable Energy Corporation (CREC), one of the Philippines’ leading renewable energy companies, was recently recognized as one of the Best Companies to Work for in Asia, as awarded by renowned international publication and award-giving body, HR Asia.

The Philippine leg of the awarding ceremony was held on 22 August 2023 in Mariott Hotel, Metro Manila. Receiving the award for CREC is its President and CEO, Mr. Oliver Y. Tan.

During a post-award interview, CREC President and CEO Mr. Oliver Y. Tan explained the company’s values as the driver towards the vision of sustainability – including growing its employees and talents together with the organization.

The HR Asia Best Companies to Work for in Asia Awards is given to organizations which are identified as leading employers of choice determined by employees. The award recognition attracts fortune 500 companies both locally and internationally. In the Philippines, CREC is recognized side-by-side with big names such as Ayala Land, Globe, Unionbank, and Puregold.

Apart from this, CREC also received HR Asia’s Most Caring Company Award 2023 due to its efforts in creating and maintaining a culture of empathy and care within the organization.

CREC was chosen due to its outstanding employee engagement programs and positive workplace culture. The company understands the needs of its employees and rolled-out programs such as “O.N.E. C1T1CORE” onboarding program which equips new hires with knowledge and tools to seamlessly integrate into the company; interactive seminars with topics ranging from heath and wellness, to industry understanding, and even monthly themed employee engagement activities; and competency-based trainings and workshops for all employee levels.

Together with CREC President and CEO Mr. Oliver Tan (3rd from left) are delegates from the company’s management team: From left: Procurement Manager Alreetz Santander, Kenneth Tan, Oliver Tan, HR Senior Manager Lalaine Rosales, CFO Mia Cortez, VP and Head for Legal and Regulatory Atty. Jaime Del Rosario, Sales and Trading Senior Manager Jerard Garcia, and HR Learning and Organization Junior Manager Ronald Mallari.

The company also continues to bring out employee excellence through its “In The Loop” quarterly roundup and achievement sessions – which gather the entire organization to celebrate successes, the GreenSource newsletters which feature the company’s notable milestones and employee contributions, and corporate social responsibility activities where employees get to actively participate through volunteerism.

“We are happy to receive these awards which recognize the company’s values of excellence, teamwork, integrity, and malasakit,” said CREC President and CEO, Mr. Oliver Tan. “This is proof of our dedication to nurture our employees and help bring out their best talents as they grow hand-in-hand with our organization,” he added.

 

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Budget deficit shrinks 45% in July

The National Government’s budget deficit narrowed by 44.89% to P47.8 billion in July. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Luisa Maria Jacinta C. Jocson, Reporter

THE NATIONAL Government’s (NG) budget deficit shrank by 44.89% in July, amid double-digit growth in revenues and expenditures, the Bureau of the Treasury (BTr) said.

Data from the BTr showed the fiscal gap narrowed by 44.89% to P47.8 billion in July from P86.8 billion in the same month a year ago.

“The NG’s budget deficit for July declined from a year ago on the back of 33.4% higher growth in revenue collection versus the 16.22% increase in government expenditures,” the BTr said.

In July, revenue collection rose to P411.7 billion from P308.6 billion in the same month a year ago.

Tax revenues increased by 23.18% to P348.5 billion in July, despite a double-digit decline in Customs collection.

The Bureau of Customs’ (BoC) collection declined by 12.61% year on year to P73.1 billion, but this was offset by the 38.37% increase in Bureau of Internal Revenue (BIR) collection to P273.1 billion.

Nontax revenues more than doubled to P63.2 billion in July from P25.7 billion in the same month a year ago. This was mainly due to the surge in BTr revenues to P50.8 billion in July from P13.4 billion a year ago. Revenues from other offices inched up by 0.58% to P12.4 billion.

Meanwhile, state spending went up by 16.22% to P459.5 billion during the month from P395.4 billion a year ago.

The BTr said the increase in expenditures was mainly due to higher disbursements by the Social Welfare, Health and Agriculture departments.

“Spending in July also expanded on the back of significant infrastructure outlays of the Department of Public Works and Highways for its road network development program and the Department of Transportation for rail transport projects,” it added.

Primary expenditures, which refer to spending net of interest payments, rose by 15.35% to P396 billion in July.

Interest payments jumped by 22% to P63.6 billion during the month.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said that July was a “strong month” for both revenues and spending.

“This resulted in a narrower budget which would improve overall fiscal metrics. We’ll need to see more of this in the coming months with healthy spending complemented by a sustained increase in revenue collections,” he said in a Viber message.

China Banking Corp. Chief Economist Domini S. Velasquez said the “better-than-expected” deficit was mainly due to the increase in revenues that were likely helped by improvements in tax administration.

“Spending also greatly improved, which grew by 16.2% as the government ramps up spending,” she said.

The Philippine economy grew by a weaker-than-expected 4.3% in the second quarter, partly due to the 7.1% decline in government spending. Government agencies were flagged for their low budget utilization and slow spending in the first half.

“Given the red flag from government underspending in the second quarter, we expect this uptick in spending to continue. Revenues will likely taper off due to a slowdown in economic activities. Overall, we still expect the National Government to reach its target this year,” Ms. Velasquez added.

YEAR-TO-DATE DEFICIT
For the first seven months of the year, the budget gap narrowed by 21.22% to P599.5 billion from the P761-billion shortfall a year ago.

Government revenues in the January-July period rose by 11.58% to P2.271 trillion from P2.036 trillion a year ago.

Tax revenues, which accounted for 88.74% of the total revenues, grew by 10.52% to P2.016 trillion from P1.824 trillion in the previous year.

BIR collection increased by 12.21% to P1.492 trillion, while BoC collection went up by 5.45% to P506.5 billion.

Nontax revenues jumped by 20.72% to P255.8 billion, as the BTr’s income climbed by 22.4% to P143.8 billion.

“The BTr’s collection for the seven-month period (is) higher than the 2022 comparable performance and has already exceeded the full-year target of P58.3 billion largely due to higher dividend remittances, income from managed funds and government deposits, as well as NG share from PAGCOR (Philippine Amusement and Gaming Corp.) profit,” it added.

Nontax revenues from other offices rose by 18.63% to P112 billion, partly due to one-time remittances from Philippine Charity Sweepstakes Office, Department of Foreign Affairs, and Bases Conversion and Development Authority.

Meanwhile, government expenditures inched up by 2.66% to P2.871 trillion in the January-to-July period from P2.797 trillion a year ago.

Primary spending rose by 1.51% to P2.525 trillion, while interest payments increased by 11.87% to P346 billion year on year.

“January-July interest payments comprised 12.05% of the total expenditure, higher than last year’s 11.06%. Meanwhile, interest payments as a percentage of total revenues inched up to 15.23% from 15.19% in 2022,” the BTr said.

This year, the government has set a budget deficit ceiling of P1.499 trillion, equivalent to 6.1% of the gross domestic product (GDP).

As of end-June, the NG’s deficit-to-GDP ratio stood at 4.8%, lower than the 6.5% ratio in the same period in 2022.

The government is targeting to further reduce the deficit-to-GDP ratio to 3% by 2028.

Inflation likely settled within 4.8%-5.6% in Aug.

Rising prices of rice may have partially driven higher inflation in August. — PHILIPPINE STAR/EDD GUMBAN

HEADLINE INFLATION likely settled within the range of 4.8% to 5.6% in August amid a sharp increase in rice and fuel prices, the Bangko Sentral ng Pilipinas (BSP) said on Thursday.

If realized, August inflation would exceed the central bank’s 2-4% target band for the 17th straight month.

It would also be faster than the 4.7% print in July, which would end six straight months of slowing inflation.

The Philippine Statistics Authority (PSA) will release August consumer price index (CPI) data on Sept. 5.

“Higher prices of rice and other agricultural commodities due to weather disturbances, sharp rise in fuel prices as well as increased transport costs owing to higher train fares and toll rates, and the peso depreciation are the primary sources of upward price pressures in August,” the BSP said.

In August alone, oil companies raised pump prices by P5.90 per liter for gasoline, P9.90 per liter for diesel and P10 per liter for kerosene.

Higher fares at the Light Rail Transit Lines 1 and 2 took effect on Aug. 2. The minimum boarding fee was increased from P11 to P13.29, while distance fare was hiked to P1.21 from P1 per kilometer.

The peso closed at P56.595 on Thursday, depreciating by 3% or P1.715 from the P54.88 finish on July 31. Year to date, the peso depreciated by 1.5% or P0.84 from its P55.755 close on Dec. 29.

“Meanwhile, lower electricity rates from major providers could contribute to downward price pressures for the month,” the central bank said.

Manila Electric Co. (Meralco) lowered rates by P0.29 per kilowatt-hour (kWh) to P10.90 per kWh in August from P11.19 per kWh in July.

Debalika Sarkar, an economist from ANZ Research, expects 4.7% inflation in August due to base effects. Headline inflation was at 6.3% in August 2022. 

However, a large increase in rice prices may add to food inflation last month, she said in an e-mail.

The average price of a kilogram of local well-milled rice ranged from P47-P56 as of Aug. 30, higher than the P41-P49 range as of Aug. 1

“A sharp rise in rice prices in the domestic market, following India’s ban on rice exports in late July, will be reflected in August inflation data. We are expecting a rebound in food prices following six consecutive months of deceleration,” Ms. Sarkar said.

In July, India banned the export of non-basmati white rice to control rising domestic prices. India accounts for more than 40% of world rice exports.   

Based on PSA data, food inflation further eased to 6.3% in July from 6.7% in June and 7.1% a year ago.

“Food prices in the Philippines are again on the radar with rising global rice prices and fears of agricultural production loss due to El Niño. Food makes up around 35% of the Philippines’ CPI basket, therefore a decoupling trend (food prices rising but headline falling) may not last once the base effects fade,” Ms. Sarkar said.

Meanwhile, Metrobank Research in a note cut its full-year inflation outlook to 5.6% from 5.8% previously. This matched the BSP’s average inflation forecast for 2023.

“Metrobank Research expects (the downward)  trend to persist in the succeeding months sans supply shocks. However, the bank also recognizes looming upside risks emerging from higher rice prices which may feed into the headline inflation by yearend and until the following year,” it said.

The BSP sees inflation returning to the 2-4% target band by the fourth quarter this year. It projects inflation to settle at 5.6% in 2023, before easing to 3.2% in 2024.   

“While price pressures have significantly tempered for 2023, we see these upside risks to be a major consideration for the BSP that may push currently stable inflation expectations higher,” Metrobank Research said.

The research firm said the BSP may keep interest rates steady at 6.25% for the rest of the year, before cutting by 100 basis points (bps) to 5.25% in 2024.

The Monetary Board raised borrowing costs by 425 bps from May 2022 to March 2023 to tame inflation.

“The continued slowdown in inflation which may return within the BSP’s target range towards yearend is anticipated to prompt rate cuts in the following year which will then push growth to rebound in 2024,” it said.

Metrobank Research also slashed its Philippine growth forecasts to 5.5% from 6% previously due to the second-quarter figures. This is below the government’s 6-7% target for the year.

The Philippine economy expanded by just 4.3% in the second quarter, bringing the first-half average to 5.3%. — Keisha B. Ta-asan

Net ‘hot money’ inflows surge to $962M in July

More foreign capital went into the country in July to yield a net inflow for a second straight month. — REUTERS/DADO RUVIC/ILLUSTRATION

FOREIGN PORTFOLIO investments registered a net inflow for the second straight month in July, the Bangko Sentral ng Pilipinas (BSP) said on Thursday.

Transactions on short-term foreign investments registered with the BSP through authorized agent banks posted a net inflow of $962 million in July, a turnaround from the $103.14-million outflow in the same month in 2022.

The net inflow in July was also significantly higher than the revised $280,000 net inflow in June.

These foreign investments are also known as “hot money” — called as such due to the ease by which these funds enter and exit an economy.

Based on BSP data, gross inflows hit $1.58 billion in July, 77.2% up from the $889.4 million in June. It was also more than double the $680.7 million in the same month last year.

The top five investor economies were the United Kingdom, the United States, Singapore, Luxembourg, and Germany, accounting for 85.7% of total foreign portfolio investment inflows.

About $996 million or 63.2% were invested in peso government securities, while about 36.8% went into Philippine Stock Exchange-listed securities of companies involved in banks, property, food, beverage and tobacco, holding firms, and transportation services.

On the other hand, gross outflows declined by 30.9% to $614.5 million in July from $889.1 million a month prior. Year on year, net outflows fell by 21.6% from $784 million. 

The BSP said the United States received $400 million or 65% of total outward remittances.

The surge in hot money inflows in July may be due to bullish investor sentiment in the country.

“Net inflows in July may be supported by increased interest in the country due to various reforms such as the passage of the Maharlika Investment Fund (MIF) and proposed green lanes for investments,” China Banking Corp. Chief Economist Domini S. Velasquez said in a Viber message.

In July, President Ferdinand R. Marcos, Jr. signed the law creating the MIF, which is the country’s first sovereign wealth fund.

Ms. Velasquez also said that easing inflation in the US drew more investments.

“This information likely encouraged investors to flock to emerging markets like the Philippines,” she added. 

For the first seven months of the year, BSP-registered foreign investments yielded a net inflow of $81.71 million, significantly lower than the $715-million net inflow in the same period last year.

“Moving forward though, we expected hot money to remain weak due to a very thin interest rate band with the Fed and live possibility of further interest rate hikes domestically and abroad,” Ms. Velasquez said.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said concerns over the pace of the Fed’s tightening may continue to impact the direction of hot mon y flows for the rest of the year.

The BSP expects hot money to yield a net inflow of $2.5 billion this year. — Keisha B. Ta-asan

Domestic liquidity grows by 5.9% in June — BSP data

Domestic liquidity jumped by 5.9% year on year to P16.4 trillion in June. — PHILIPPINE STAR/WALTER BOLLOZOS

GROWTH in money supply further eased in June as high borrowing costs weighed on credit demand.

Data from the Bangko Sentral ng Pilipinas (BSP) showed that domestic liquidity, as measured by M3, expanded by 5.9% to P16.4 trillion in June, slower than the 6.6% growth in May.

On a month-on-month seasonally adjusted basis, M3 increased by 0.2%.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the June domestic liquidity growth was among the slowest in nearly two years or since July 2021.

He attributed this to the “restrictive monetary policy measures” as the BSP sought to mop up excess liquidity from the financial markets to curb inflation and stabilize the peso.

The Monetary Board raised borrowing costs by 425 basis points (bps) from May 2022 to March 2023, bringing the key interest rate to a near 16-year high of 6.25%.

Based on BSP data, domestic claims jumped by an annual 10.1% in June, slightly slower than 11.4% in May.

Claims on the private sector rose by 7.9% in June, easing from the 9.4% growth a month ago. The growth was driven by continued expansion in bank lending to nonfinancial private corporations and households.

Meanwhile, net claims on the central government rose by 17.2% in June, a tad slower from 18.3% in May, on the sustained borrowings by the National Government.

Net foreign assets (NFA) in peso terms slid by 2.8% in June, reversing the 2.7% expansion in May.

“The BSP’s NFA position declined by 0.6% in June after increasing by 4.2% in the previous month. Meanwhile, the NFA of banks declined on account of higher bills payable,” the central bank said.

The BSP added that it will continue to ensure domestic liquidity conditions are consistent with price and financial stability.

“For the coming months, M3 growth could remain tempered as long as inflationary pressures remain and monetary policy remains restrictive to bring down inflation further to BSP’s targets,” Mr. Ricafort said. 

Headline inflation likely settled within the 4.8%-to-5.6% range in August, according to the BSP.  If realized, this would be higher than the 4.7% print in July. It would also mark the 17th straight month inflation breached the 2-4% target.

The BSP sees inflation returning to the 2-4% target range by the fourth quarter this year. It projects full-year inflation to reach 5.6% in 2023, before easing to 3.2% in 2024.

Earlier BSP data showed outstanding loans of big banks expanded by 7.8% to P10.99 trillion in June from P10.19 trillion a year ago. Bank lending growth in June was slower than 9.4% seen in May and 12.1% in June 2022. — K.B. Ta-asan

ICTSI secures $750-M loan for overseas expansion

RAZON-LED International Container Terminal Services, Inc. (ICTSI) has signed a $750-million loan agreement with Metropolitan Bank & Trust Co. (Metrobank), its biggest loan to date, the listed terminal operator said on Thursday. 

The six-year credit facility will fund the company’s planned expansion overseas, it added. Established in 1987, ICTSI operates 33 terminals in 20 countries across six continents.

“Our long-standing relationship with Metrobank enables us to carry out our objective of continuously making our terminals around the world more globally competitive, more efficient, and more accessible,” ICTSI Executive Vice-President Christian R. Gonzalez said in a statement.

Proceeds from the loan will also fund short-term obligations and strategic mergers and acquisitions (M&A), the company said. 

“At the same time, this relationship enables us to act more proactively on M&A opportunities of all sizes. Metrobank has been a tremendous partner for us in building our global portfolio and in expanding our position as one of the Philippines’ true global corporate players,” Mr. Gonzalez added.

ICTSI has set a goal of investing in new and existing terminals to accelerate the growth of its offshore and domestic operations. 

“ICTSI plays a vital role in various markets. Its efforts in building catalysts of growth worldwide make the Filipino standard, a goal for all. We are happy to be able to support ICTSI’s global initiatives and we are proud to play a role in its success,” Mary Mylene A. Caparas, institutional banking sector head of Metrobank, said.

For 2023, ICTSI has said that it is setting aside about $400 million for capital expenditure (capex) to expand and improve productivity in its terminals in Australia, Mexico, the Philippines, the Democratic Republic of Congo, and Nigeria.

In 2019, ICTSI said its subsidiary ICTSI Global Finance B.V. had secured a $300-million seven-year loan from Metrobank to fund its capex and refinance obligations.

At the local bourse on Thursday, shares in the company shed P5.60 or 2.63% to end at P207.20 apiece. — Ashley Erika O. Jose

ERC grants Meralco-PEDC move to end supply deal

PHILSTAR FILE PHOTO

THE energy regulator has granted the joint move by Manila Electric Co. (Meralco) and Panay Energy Development Corp. (PEDC) to terminate their power supply deal.

In a media release on Thursday, the Energy Regulatory Commission (ERC) said it had granted the joint motion for contract termination filed by the companies on June 23, 2022, citing PEDC’s inability to meet its contractual obligations because of the losses it incurred.

The regulator made the decision on March 8, 2023 and released it on Aug. 29, 2023 via a vote of 3-2, with ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta issuing a separate opinion and Commissioner Catherine P. Maceda issuing a dissenting opinion.

Meralco and PEDC cited the “change in circumstance” provisions in their power supply agreement (PSA) as the reason for the termination.

In granting the termination motion, the regulator said the majority of the commissioners found that there was a basis to terminate the PSA as mutually agreed by the parties.

It said Meralco and PEDC stipulated in their PSA that they had the option to terminate at the instance of a “change in circumstance,” as in this case.

The termination motion followed the parties’ joint motion for contract price adjustment filed on Jan. 20, 2022, citing the “change in circumstance” provisions in their PSA.

The companies argued that the significant increase in the global cost of coal or fuel prices for 2022 had led to PEDC suffering losses amounting to about P962.24 million as of September 2022.

The ERC said that upon verification of the documents submitted by the parties, it computed an actual loss of around P884.55 million as of that date.

In granting the price adjustment motion, the commission was unanimous in finding that the PSA allowed for price adjustments in case of an “extraordinary event” that “results in an increase of actual fuel costs from the fuel prices at the time of bid submission” under certain conditions.

The ERC said that in its evaluation, the majority of the commissioners ruled that such conditions specifically defined by the “change in circumstance” provisions found in the PSA were present in this instance.

In her separate opinion, Ms. Dimalanta said that by filing the termination motion before the commission decided on the price adjustment motion, the parties are deemed to have abandoned their request for price adjustment.

She added that while there is a substantive basis to allow the termination of the PSA, the parties should be penalized for failing to observe the procedural requirements in the PSA for the termination.

In her dissenting opinion, Ms. Maceda voted to deny the termination motion, price adjustment motion, and prayer for recovery of PEDC’s alleged fuel losses, “principally for failure of the parties to observe the conditions and processes required under the PSA that they executed.”

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