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Christmas always finds its way

Coca-Cola™ celebrates the unstoppable force of bringing families together in this year’s holiday campaign

Holidays are indeed coming, and Coca-Cola is celebrating the moment with the launch of its new campaign, “Christmas Always Finds Its Way” which celebrates the unstoppable, magical force of Christmas in navigating all obstacles to bring people together.

In 2021, Coca-Cola launched Real Magic®, its new global brand platform and philosophy that invites everyone, everywhere to celebrate the magic of humanity. Central to the philosophy is the belief that we find magic when we come together and share experiences.

In this year’s multi-channel, digital, and experiential campaign, Coca-Cola is set to create a series of memorable and distinct moments across the Philippines, designed to celebrate and create that festive magic across the country, while observing the special role that gatherings, meals, and traditions play in bringing families, friends, and communities together. After all, Coca-Cola has always been part of every Filipino celebration.

“December is the peak of holiday celebrations in the Philippines, when families and loved ones come together to share stories, exchange laughter, and bond over meals and drinks,” said Cesar Gangoso, East Region Frontline Marketing Director of Coca-Cola ASEAN and South Pacific. “We are delighted to hear stories of Filipinos who always celebrate Christmas with a bottle or two of Coca-Cola, so with this year’s campaign, we want to better enrich the festivities through a series of activities in the Philippines that can bring a truly magical experience.”

The campaign starts with a film, “Just Like Mama Used to Make,” directed by German filmmakers Dorian and Daniel and created by Grey Global. The film tells the heart-warming story of how a son’s memory of his mother is kept close through the preparation of a treasured family recipe, continuing to bring his family and new generations together for moments of magic at Christmas.

“The long association of Coca-Cola with Christmas is something we treasure and, this year, we’re back with a new campaign that we hope people all over the world will love,” shared Selman Careaga, president of Coca-Cola trademark. “It celebrates families and friends, past and present, as well as those shared recipes, memories, and traditions that bind generations together over the Christmas meal.”

In wider plans to mark the festive season, the brand’s iconic Caravans will return. For almost three decades, since they first lit up the small screen in a TV ad in the mid-1990s, Coca-Cola has built its Caravans truck asset as a powerful and tangible icon of Christmas across the globe. This year, Coca-Cola Caravans are back, and the brand will be curating a truly magical, festive experience centered around sharing meals with an ice-cold Coca-Cola drink. Reimagined as ‘The Coca-Cola Care-A-Van’ in the Philippines, Coca-Cola aims to takeover over forty food fests in different parts of the country, with the goal of bringing communities around the Philippines together for festive cheer.

The first Coca-Cola Care-A-Van Community Takeover was in Pasig City’s Greenfield District on December 3, 2022. With a jolly Santa Claus holding a bottle of Coca-Cola painted on its body, the iconic truck welcomed guests and served as a photo wall for taking festive photos. Food tents surrounding the venue also provided meals and Coca-Cola products to be enjoyed during the program. A dynamic performance by Coke Studio artist and rising P-Pop group ALAMAT, raffle draws, games, and other activities also contributed to the lively atmosphere.

Coca-Cola continues to not only refresh people with delicious drinks, but to also refresh communities. In partnership with the Ronald McDonald House of Charities Philippines, the Coca-Cola Care-A-Van Community Takeover will make a stop at Sitio Pintor, Rizal to host a Christmas party and give away meals and Coca-Cola products to 100 underserved families—bringing the spirit of Christmas to whoever needs it.

Lastly, the digital experience will continue as Coca-Cola launches “Call from Santa” web platform that will be available on iOS, Android, Win, and Mac. Filipinos can also access the platform by scanning a QR code in select Coca-Cola bottles. Anyone who wishes to send a surprise to their loved ones can request a personalized video message from Santa. With the Philippines being one of the largest diasporas globally, the platform is a welcome initiative, especially for those who are out of the country.

“We all know how special Christmas is to Filipinos, but we also recognize that there are many out there who can’t be home during the holiday season due to various circumstances or obligations, even as they yearn to be among their loved ones to celebrate a Christmas meal,” said Tony del Rosario, President of Coca-Cola Philippines and Vice President for the East Franchise Operations of Coca-Cola ASEAN and South Pacific. “Since they cannot be with their family and friends, we at Coca-Cola want to find a way to help them enjoy Christmas and experience the magic of the season.”

Indeed, Christmas this year will still be festive, especially for those with impossible journeys, as Coca-Cola helps find ways to bring Filipinos together and remind us that the festivities lie in the moments we share with our loved ones.

To learn more about Coca-Cola, visit us at coca-cola.com.ph or follow us on Facebook, Instagram, YouTube, and Twitter.

 

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New Zealand forecasts recession next year but a narrower budget deficit

Image via Anup Shah/Flickr/CC BY-SA 2.0

WELLINGTON — New Zealand’s government on Wednesday forecast the country would enter a recession in 2023, even as the budget remained on target to move into surplus for the 2024/25 financial year.

Spending constraints and the forecast recession will add to challenges facing Prime Minister Jacinda Ardern’s Labour party as it approaches a general election next year.

The economy will shrink in the second, third and fourth quarters of 2023, according to Wednesday’s economic and fiscal update from the Treasury.

The Reserve Bank of New Zealand is even more pessimistic than the Treasury, having forecast a year-long recession beginning in the second quarter of next year, a result of steep interest rate rises it has implemented to control inflation.

“2023 is a challenging year for many New Zealand households,” Finance Minister Grant Robertson told a press conference after issuing the regular mid-financial-year update.

Getting back to surplus would demand tough budgetary choices, he said in a statement.

Ministries would be told to find money within existing budgets for new initiatives next year, Robertson said.

In May, the government announced heavy spending on infrastructure, including new schools, and on the health system, which got more funding for drugs and facilities.

Opposition parties have criticized Labour’s spending as contributing to inflation, which is running at just below three-decade highs.

Robertson said a careful approach to the budget was needed if the country wanted to get inflation down.

Nonetheless, the fiscal outlook has already improved. The government predicted a budget deficit of NZ$3.63 billion ($2.34 billion), or 0.9% of gross domestic product (GDP), for the financial year ending June 2023. That was narrower than the NZ$6.6 billion forecast in the budget issued in May.

Public finances would produce another deficit in 2023/24 but shift to a surplus of NZ$1.6 billion in 2024/25, according to the Treasury’s update document.

It forecast that net debt under an old method of calculation would peak at 41.8% of GDP in 2023/24, compared with the May forecast for a peak in 2023/24 at 41.2% of GDP.

Westpac economists said in a note that the relatively benign fiscal outlook hinted at some wiggle room for government spending. “For now, though, the Government is keeping its powder dry,” the note added.

The government said it would extend transport subsidies, with the expiry of a cut on petrol excise duty deferred to February and half-price public transport remaining until March.

Despite economic weakness, inflation will not return to the government’s target band of 1% to 3% until December 2024, according to the Treasury’s update. In the third quarter of 2022, consumer prices were 7.2% higher than a year earlier. — Reuters

Uncertain conditions await Bankman-Fried at Bahamas detention center

Sam Bankman-Fried, founder and former chief executive officer of now-bankrupt crypto exchange FTX. — WIKIMEDIA COMMONS

Prisoners faced rodents and a lack of toilets in the Bahamas detention center where Sam Bankman-Fried will be held, according to a 2021 US State Department report, though local authorities says conditions have since improved.

The 30-year-old Mr. Bankman-Fried arrived at a Bahamas court on Tuesday for his first in-person public appearance since the spectacular collapse of cryptocurrency exchange he founded.

He did not waive a hearing on his extradition to the United States to face charges of misappropriating funds and violating campaign laws, apparently in hopes of obtaining bail, but was instead remanded to the Bahamas Department of Correctional Services until Feb. 8 by Chief Magistrate JoyAnn Ferguson-Pratt.

Bahamian Commissioner of Correctional Services Doan Cleare said preparations were being made for him to be housed in the medical department. That would mean he will be in a sick bay that can hold about five people, Cleare said.

“He will be in sick bay for orientation purposes and then we will determine where best to place him,” Mr. Cleare said in a telephone interview on Tuesday.

The US State Department in a 2021 report described conditions at the facility, also known as Fox Hill Prison, as “harsh,” citing overcrowding, rodent infestation and prisoners relying on buckets as toilets.

Mr. Cleare said on Tuesday that prison conditions have greatly improved thanks to a renovation program that has built new cells.

“The facilities, most of them have been renovated,” Mr. Cleare said. “We have one more to go and we don’t have any issues with rodents.”

Larry Levine, the founder of Wall Street Prison Consultants, which advises those convicted of white collar crimes on how to get into better prisons, said that Mr. Bankman-Fried should not fight extradition.

“There is no advantage to him staying, he’ll be sent to the US eventually anyway,” Levine said.

US prosecutors on Tuesday accused Mr. Bankman-Fried, the founder and former CEO of crypto currency exchange FTX, of fraud and violating campaign finance laws, saying he made illegal campaign contributions to Democrats and Republicans with “stolen customer money.”

Mark S. Cohen, Bankman-Fried’s lawyer, said in a statement that his client was considering all of his legal options.

Mr. Bankman-Fried has apologized to customers and acknowledged oversight failings at FTX, but said he does not personally think he has any criminal liability. — Reuters

EU seeks firm words on Russia at first summit with ASEAN

REUTERS

BRUSSELS — The European Union and the Association of Southeast Asian Nations (ASEAN) meet for their first summit on Wednesday to deepen economic ties, with European leaders pressing for firm, shared language critical of Russia.

The leaders of 27 EU countries and nine of 10 ASEAN leaders have been invited to a commemoration of 45 years of diplomatic relations. Military-ruled Myanmar has been excluded.

The leaders are set to discuss areas of future cooperation, including trade, the green and digital transitions and health. The two blocs have already signed a deal to allow their airlines to expand services more easily.

European Commission President Ursula von der Leyen is set to commit 10 billion euros ($10.6 billion) of public funds to 2027 for investment in projects in ASEAN, such as in renewable energy and sustainable agriculture.

“We see a lot of demand in the region to diversify their sources of investment and work with reliable partners,” an EU official said of the region where links with China have grown.

The EU wants to expand its trade ties beyond its free trade agreements with Singapore and Vietnam and negotiations with Indonesia. The regional groupings are each other’s third largest trading partners.

They are also expected to demonstrate a commitment to a rules-based international order.

The European Union is keen for a statement to describe the war in Ukraine as an act of aggression by Russia. An EU official said the bloc was very positive on prospects for the wording, while admitting it was not an easy task.

Singapore is imposing sanctions on Russia, while Laos, Thailand and Vietnam abstained in a United Nations vote in October to condemn Russia’s annexation of Ukrainian regions.

Leaders of the Group of 20 (G20) nations agreed at a meeting chaired by ASEAN nation Indonesia last month that “most members” condemned the war.

The summit statement is likely also to call for calm in the South China Sea and address the February 2021 military coup in Myanmar and instability on the Korean peninsula. — Reuters

Globe named PHL’s Best Mobile Network Infrastructure Company at Global Business Outlook Awards 2022

Leading digital solutions platform Globe has been named the Best Mobile Network Infrastructure Company at the annual Global Business Outlook Awards 2022. This recognition follows last year’s award for Most Innovative Telecom.

“We are honored to be given this recognition. At Globe, we continue to invest in our network to provide our customers with superior experience. We are happy that Filipinos have adopted a digital way of life using the platforms and apps we are offering. With advanced technology and continuous network upgrades, our customers will have access to more relevant digital solutions and reliable connectivity wherever they are,” said Globe Group President and CEO Ernest Cu.

Globe spent more than P100 billion in capital expenditures this year with its aggressive builds towards a #1stWorldNetwork.

This expansion is in line with Globe’s support for the United Nations Sustainable Development Goals, particularly UN SDG No. 9, which highlights the roles of infrastructure and innovation as crucial drivers of economic growth and development.

By end-September, the company has upgraded 10,600 sites to LTE, deployed 1,887 5G sites nationwide and installed 1.4 million fiber-to-the-home (FTTH) lines.

Recently, Globe unveiled its CAPEX guidance to $1.3 billion in 2023, as network spending is expected to peak at about $1.9 billion this year.

The amount would be trimmed to $1 billion in 2024 after significant spending over the past two years to take advantage of streamlined processes for deploying infrastructure. Globe is maximizing its fiber builds and leveraging partnerships with tower companies to continue expanding its network footprint and provide best-in-class connectivity to customers.

The Global Business Outlook Awards recognize and reward excellence in businesses around the world. It is designed to facilitate the outstanding work of businesses and business leaders across industries.

It extends to the private and public sectors—again, marking a testament to the work of myriad businesses in terms of performance, innovation and drive to create industry value.

To learn more about Globe, visit www.globe.com.ph.

Philippines wealth fund won’t affect BSP mandate, Medalla says

Bangko Sentral ng Pilipinas (BSP) Governor Felipe M. Medalla attends an economic briefing in Pasay City, July 26, 2022. — REUTERS

The Philippine central bank’s ability to rein in inflation will remain unhampered despite a proposal for the monetary authority to contribute to a wealth fund that could delay its capital increase, according to Governor Felipe Medalla.

“Our balance sheet is currently quite strong that postponement of equity infusion will not affect our ability to achieve price and financial stability,” Mr. Medalla said in a text message late Tuesday.

The revised version of the bill proposing to establish the Maharlika Investment Fund requires the Bangko Sentral ng Pilipinas to contribute all of its annual dividends into the wealth fund for the first two years. For subsequent years, the proposal states that the central bank may put in just half of its dividends and use the other half to increase the monetary authority’s capital.

The national government has the authority to decide how much of the dividends remitted by the central bank will be used to increase its capitalization, Mr. Medalla also said.

A law increasing the Philippine central bank’s capital to P200 billion ($3.6 billion) from P50 billion was enacted in 2019 to further boost its capability to carry out its price and financial stability mandate amid the financial system’s growing sophistication. The capital hike will come from national government infusion out of the central bank’s dividends. — Bloomberg

Meralco receives international recognition for customer-centric and data-driven digital transformation

Meralco’s customer centric and data-driven program gets recognition at the 8th annual Talend Data Masters Awards

The Manila Electric Company (Meralco), the country’s largest electric distribution utility, has received a recognition for its customer centric and data-driven digital transformation program at the 8th annual Talend Data Masters Awards.

Established in 2015, the awards program honors companies across the globe that share the goal of transforming data into quantifiable business value.

With a mission to provide the best value energy solutions for its customers, Meralco has ventured into a digital transformation journey in 2020 by implementing a holistic data management strategy that integrates governance, processes, people, and technology through the Meralco Data Platform (MDP). This allows Meralco to use data analytics and intelligence more broadly, efficiently, and effectively in making business decisions in a timely manner.

Harnessing the power of data led to tangible improvements in Meralco’s customer satisfaction and operational efficiency. Responsible Meralco offices now have more visibility on ongoing customer service applications, enabling them to ensure timely energization with the help of actionable insights from operationalized dashboards. Furthermore, aided by operationalized predictive analytics models, the company can now proactively identify distribution transformers in need of rehabilitation, thus sparing almost 200,000 customers from unplanned power outages in 2021.

“This international recognition demonstrates Meralco’s commitment in providing excellent service to our more than 7.5 million customers by leveraging technology and data to help speed up operations, improve customer experience, and unlock opportunities for innovation,” said Rocky D. Bacani, Meralco FVP and Head of Information, Communications, Technology and Transformation.

Meralco distributes electricity to 36 cities and 75 municipalities in the Philippines. Meanwhile, Talend is a global leader in data integration and management with more than 7,250 customers around the world.

 

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Prioritize PH–EU free trade deal — ECCP

The Marcos administration should prioritize the free trade agreement with the European Union (EU), said Lars Wittig, president of the European Chamber of Commerce of the Philippines. “If you believe in the Philippines, it will be one of your biggest markets,” he said. “The potential in the Philippines is huge.”

Meanwhile, President Ferdinand R. Marcos, Jr., also brought up the free trade agreement in his speech at the 10th ASEAN-EU Business Summit in Brussels, Belgium, on Dec. 13.

“We need to continue this momentum. It is important that our governments continue to collaborate with the private sector, especially with the current geopolitical challenges. With the participation of ASEAN members in trade deals, ASEAN is well positioned to accelerate our progress. Although the EU is historically a dialogue partner of ASEAN, an FTA is a long-term objective. In the meanwhile, ASEAN will continue to dialogue on economic competitiveness as the short- to medium-term plans are to transform ASEAN into a leading digital economy,” he told business and government leaders from the two blocs.

Interview by Patricia B. Mirasol. Editing by Earl R. Lagundino.

Two blue whales, but make it plastic!

  • Sustainable Futures has helped recover 243,000 kilograms of plastic for 2022.
  • Mondelēz International strengthens its sustainability agenda with like-minded organizations through self-sustaining plastic-to-eco-product facilities.

What do two of the heaviest living creatures in the world and Mondelez International’s recovered plastic waste have in common? They both weigh more than 240 metric tons!

The improper waste disposal of plastics is one of the most challenging issues in the world. Though plastic is valuable to protect food products, improper trash segregation and the lack of plastic recycling facilities are the leading cause of polluted lands and bodies of water. As leaders in the future of snacking, Mondelēz International’s mission is to deliver packaging that protects its products and does not pollute the environment. Mondelēz Philippines is proud to share its latest sustainability achievement for the full year of 2022: 243,000 kilograms of plastic waste collected, ready for recycling and repurposing. That’s the equivalent of two Blue Whales or 20 African Bush Elephants!

Snacking Made Right

Mondelēz International’s Snacking Made Right agenda is about empowering people to snack right; by having the right snack, for the right moment, made the right way. “We’re on a mission to lead the future of snacking by creating snacks the right way for both people and planet to love,” shares Aleli Arcilla, VP and Managing Director of Mondelēz Philippines. “We have specific goals to which we hold ourselves accountable, and we’re continuing to make progress and scale our efforts to deliver meaningful change. Sustainable Snacking is our commitment to growing our business and making our snacks the right way, with positive impact on people and the planet.”

Mondelēz International’s 243,000 kilos of recovered plastic is a product of its long and extensive history of partnering with socially responsible and like-minded organizations that care for the environment. In the previous years, they collected 173,990 kilograms of plastic, which has been transformed to sustainable products and building materials like ecobricks, ecoplanks, ecoboards, and outdoor furniture, among others.

Mondelez International’s Sustainable Futures

Through the Sustainable Futures platform, the company seeks to pursue and nurture innovative projects that align with its positive, environmental goals. Mondelez International recently inaugurated its new plastic recycling facility in partnership with Green Antz builders and the Philippine Business for Social Progress (PBSP), to transform plastic waste from the community into sustainable ecobricks. The facility is in Paranaque where the company’s plant is based. Additionally, the company celebrated its three-year partnership last August with The Plastic Flamingo (PLAF) by co-partnering with Megaworld Malls for a waste collection activity, that was able to collect 20,000 kilos of plastic that will be transformed into ecoboards, which among other things can be used for store displays. To commemorate Mondelez International’s 10th anniversary, the company also partnered with Geocycle Philippines and took part in the International Coastal Clean-up Drive which collected more than 500 kilos of plastic.

Aleli adds, “Through Sustainable Futures, Mondelez International seeks to co-invest in projects addressing climate change, as well as making seed investments into social ventures that aim to improve livelihoods and build healthy communities.”

EPR (Extended Producer Responsibility) on the future of plastics recovery in the Philippines

This year, Mondelēz International continues to strengthen its commitment to creating more self-sustaining projects for the environment. “We’re partnering with local and national governments, along with different organizations to collect more plastic waste and to build more recycling facilities,” says Atty. Joseph Fabul, Corporate and Government Affairs Country Manager for Mondelēz Philippines. “We want to do business the right way. Plastic packaging is a complex issue. We know it can’t be solved overnight, but we are committed to making a positive impact on the planet.”

If people want to see more blue whales (hopefully, not made of plastic!), it requires continuous support from the consumers, companies, and both national and local governments. Locally, Mondelēz International’s 243,000 kilograms of plastic collected this year alone is a proactive step to support the newly passed Extended Producer Responsibility Act (EPR) of 2022. In September and November, the snacks company partnered with AmCham Philippines and the Makati Business Club to conduct an EPR workshop among different stakeholders.

“EPR has made the importance of recycling facilities realized, highlighting the importance of waste management to prevent plastic waste from entering the environment,” Atty. Fabul concludes.

Primarily focused on recovery, the law ensures that plastic materials and waste produced can be reused, recycled, and repurposed into other value chains. Companies like Mondelēz will need to comply with the collection of 20% of our total post-consumer plastic packaging output by 2023 – up to 80% in the following years. Mondelez International continues to strengthen its relationship with green organizations like The Plastic Flamingo, Geocycle, BEST (Basic Environmental Systems and Technologies Inc.), Green Antz, PBSP, and Invisible Sisters, among others, to create a positive impact where animals, people, and planet thrive.

 

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Trade gap narrows to 17-month low

Exports grew by double-digits in October, according to the Philippine Statistics Authority. — BW FILE PHOTO

THE PHILIPPINES’ trade deficit stood at $3.31 billion in October, the narrowest gap in 17 months, as exports growth continued to outpace imports, the Philippine Statistics Authority (PSA) reported on Tuesday.

Preliminary data from the PSA showed the value of exports rose by 20% year on year to $7.70 billion in October, the fastest pace in 17 months or the 30.8% in May 2021.

The October exports growth was also quicker than the 2% seen in the same month last year, and the revised 7.1% in September.

Philippine trade year-on-year performanceImports, on the other hand, jumped by 7.5% to $11 billion in October, ending 19 straight months of double-digit expansion.

This was the slowest imports growth in 21 months, or since the 11.8% decline in January 2021. It was also weaker than the 22.8% expansion a year ago and the revised 14.4% seen in September.

This brought the trade-in-goods deficit — the difference between exports and imports — to $3.31 billion in October, narrower than the $3.82-billion shortfall a year ago and the revised $4.84-billion gap in September.

Total trade — the sum of exports and imports — grew by 12.3% to $18.70 billion, a tad slower than the 13.8% in October last year but faster than the revised 11.5% in September.

In the 10 months to October, exports grew by 6.3% year on year to $66.01 billion. This is still above the revised 4% growth target set by the Development Budget Coordination Committee (DBCC).

Year to date, imports climbed by 22.7% to $115.99 billion, breaching the government’s revised 20% target this year.

In the January-to-October period, the trade deficit widened to $49.98 billion, from the $32.40-billion gap a year ago.

Security Bank Corp. Chief Economist Robert Dan J. Roces said the double-digit exports growth in October can be attributed to “good external demand amid a holiday inventory buildup, and a strong US dollar.”

“With this, the slowing of imports is likely due to increasing costs for imported goods; rising shipping and raw material costs, global inflation, and supply imbalances have made imported goods more expensive,” he said in an e-mail.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said exports received a boost after the electronics sector had a strong month.

By major type of goods, manufactured goods had the biggest share (85.4%) of the total exports in October, amounting to $6.57 billion.

Electronic products, which accounted for more than three-fourths of manufactured goods and 66.3% of the total exports, rose 39.6% to $5.10 billion in October.

Semiconductors, which accounted for the bulk of the electronic products, surged 62.7% to $4.30 billion. Overall, sales of semiconductors made up more than half of October’s total exports.

On the other hand, imports of raw materials and intermediate goods had the largest share among major type of goods with 38.7%, inching up by 1.8% to $4.26 billion in October.

Imports of capital goods, which made up 26.2% of the total imports in October, fell by 3.5% to $2.88 billion.

Consumer goods rose 22.5% to $1.89 billion, while imports of mineral fuels, lubricants, and related materials climbed by 29.7% to $1.88 billion.

“The reason for the slower (imports) expansion can be traced to negative growth for capital goods and only modest growth for raw materials, suggesting that this episode of import growth is not capital intensive and investment momentum may be lacking,” Mr. Mapa said in an e-mail.

Mr. Mapa said imports may be driven by the elevated price of crude oil and resurgent demand for consumer goods ahead of the holiday season.

John Paolo R. Rivera, economist at the Asian Institute of Management, said the peso’s depreciation against the US dollar may have hurt imports as these became more expensive.

“Exports also increased due to increases in demand for Philippine products as the world economy continues to reopen from the pandemic,” Mr. Rivera said in an e-mail.

Hong Kong was the top destination of Philippine-made products in October with export receipts amounting to $1.28 billion, accounting for 16.6% of the total.

Exports to the United States stood at $1.18 billion (15.3% share), while exports to Japan reached $999.67 million (13%).

Meanwhile, China remained the main source of imports in October, reaching $2.22 billion or 20.2% of the total. This was followed by Indonesia with $1.27 billion (11.8% share) and Japan with $1.01 billion (9.2% share).

“The smaller-than-expected trade deficit suggests that the peso’s worst days may be over for now as one of the main reasons for the currency’s struggles (record wide trade deficit) is now less pronounced,” Mr. Mapa said.

Mr. Roces said imports are expected to recover in the near term as holiday demand surges.

“Over the medium term, China’s new policy stance swinging decisively away from growth-constraining lockdowns means its consumer demand will drive the recovery with its exports likely getting stifled by a global slowdown,” Mr. Roces said, adding this will benefit Philippine exporters to China.

Earlier last week, the DBCC revised growth targets and other macroeconomic assumptions, citing an anticipated global economic slowdown in 2023.

Economic managers expect slower growth in imports (4%) and exports (3%) in 2023. — A.M.P. Yraola with inputs from Reuters

PEZA-approved investments drop 11.5% as of Nov.

LIMA Estate’s 30-hectare commercial area in Batangas. — BW FILE PHOTO

APPROVED INVESTMENTS by the Philippine Economic Zone Authority (PEZA) dropped 11.5% in the first 11 months of 2022, but its top official is still hoping to achieve its 6-7% growth target by yearend.

PEZA in a statement said it generated P57.048-billion investments from 181 projects for the January-to-November period. This is lower than the P64.463-billion investments from 229 projects approved a year ago.

The 181 projects approved so far this year are estimated to create 33,308 direct jobs.

PEZA Officer-in-Charge and Deputy Director-General for Policy and Planning Tereso O. Panga said the agency has been able to temper the decline in investments seen earlier this year.

“From a high of 29.85% decline in investments (January-to-June 2021 versus the same period in 2022) and 22.6% decline (January-September 2021 versus the same period in 2022), PEZA was able to narrow the gap to -11.5% this January-November 2022 versus the same period last year,” Mr. Panga said.

“With two more board meetings scheduled this December, we are confident that we can achieve our target of 6-7% increase in 2022 approved investments versus 2021.”

According to the PEZA, investments from Japan reached P17.755 billion in the 11-month period, accounting for 31.12% of the total investments.

Big-ticket projects approved by PEZA include those by Shin-etsu Magnetics Philippines, Inc.; Cebu Mitsumi, Inc.; TDK Philippines Corp.; Tamiya (Philippines), Inc.; and Philippine International Manufacturing and Engineering Services Corp.

“PEZA will continue to perform its best and attract much-needed strategic and big-ticket investments… and contribute to (the President’s) goal for the country’s transition to upper middle-income economy within his term,” Mr. Panga said.

PEZA officials recently met with Japanese firms during an investment mission to Osaka and Okayama in Japan. These companies include Junca Holdings; Shibutani Shoten Corp.; Marukame Trading Co., Ltd.; VALTES Co., Ltd.; Nakashima Propeller Co., Ltd.; Inabata Philippines, Inc.; and Showa Spring Co., Ltd.

According to PEZA, Junca Holdings is looking to set up a biotechnology venture to be registered with the PEZA, while its partner company Synergy and Global Network Japan is eyeing to establish a tourism economic zone and a waste-to-energy water treatment plant.

Shibutani Shoten is planning to put up a company in the Philippines “to support its employment and training program for Filipino workers and expand its brand.” The company makes car seat, arm rest, and headrest covers for automakers such as Mitsubishi and Mazda.

PEZA executives also met with Marukame Trading to discuss its plan to hire 100 additional employees for its Philippine unit. Marukame Fashion Cebu, Inc. is an export-manufacturer of high-end and global apparel brands located at the Mactan Economic Zone.

VALTES is also eyeing to hire 100 additional engineers for its PEZA-registered unit, VALTES Advanced Technology, Inc., which is involved into software design and development.

Nakashima Propeller, a manufacturer of marine equipment such as sea vessel propellers, rudders and shafts, is planning to introduce new technology at its facility in the Cavite Economic Zone.

Ecozone logistics producer Inabata Philippines is also targeting to expand its warehouse footprint in the next two years.

Export manufacturing enterprise Showa Spring, located in Mactan Economic Zone, is looking for another location in the Calabarzon Region as part of its expansion plans.

According to PEZA, Japanese firms account for 27.52% of overall investments.

To date, there are 891 PEZA-registered Japanese enterprises which contributed P746.093 billion worth of investments from 1995 to November this year.

“With Japan’s small and medium enterprises as the lifeblood of this country’s massive economy, comprising 99.7% of all businesses, we can take advantage of these SMEs by putting up operations in the Philippines, help complete the supply chain, empower our own SMEs, and boost the country’s industrial ecosystem,” Mr. Panga said. — R.M.D.Ochave

Gov’t struggles with property acquisition for Manila subway

Metro Manila subway will run from Valenzuela City to the Ninoy Aquino International Airport. Photo taken on March 8. — PHILIPPINE STAR / MICHAEL VARCAS

By Arjay L. Balinbin, Senior Reporter

CONSTRUCTION of the first phase of the Metro Manila subway is facing delays as the government continues to have difficulty in land acquisition, its project manager said.

“There are property owners who refuse to cooperate, but we are getting help from different agencies and local government units in order to proceed,” Manila Subway Project Manager Mikaela Eloisa D. Mendoza told One New’s Agenda on Monday.

Land expropriation is an option to expedite the process, she said.

Ms. Mendoza said there was no available land for the subway project, except for those initially identified government properties, such as Veterans Golf Course and Camp Aguinaldo in Quezon City and other properties in Taguig.

The Transportation department has already acquired 90% of the properties needed for the 30-hectare depot in Valenzuela City and some station areas under the first contract package of the subway project, she said.

Ms. Mendoza said the department still aims to complete the first phase of the country’s first subway by 2028.

“We are incurring delays (in the project implementation) because of the pandemic aside from the right-of-way (ROW) acquisition. Now that the situation is going back to normal, the construction continues,” she said in a mix of English and Filipino.

The P357-billion, 33-kilometer subway will run from Valenzuela City to Ninoy Aquino International Airport. It will have 17 hop-in and hop-out stations. The subway’s Ortigas and Shaw Boulevard stations recently broke ground.

Rene S. Santiago, former president of the Transportation Science Society of the Philippines, said the target completion date for the subway is unrealistic.

“The 2028 completion date is a long shot, after I read the news items about two awards for contract packages. One stated 67 months to complete, equal to 5.6 years or nearly end of 2028. That is only one work package involving two stations and the tunneling in between,” he said in a phone message when sought for comment.

“The alleged ROW problem should not have happened if they optimized the use of TBMs (tunnel boring machines) and divided the contracts differently. Use only four TBMs, and two separate tunneling contract packages; equal to less surface disruptions and speedier construction. Estimated time for tunneling is 4.5 years,” he added.

Mr. Santiago said a more realistic completion date is by 2030.

Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said that if the acquisition of private property gets caught up in a protracted legal battle, the 2028 completion may be unrealistic.

“For context, the acquisition of private property along the subway alignment covers the country’s most exclusive villages and commercial properties. As such, we are expecting stiff opposition grinding through a prolonged expropriation process,” he said in a phone message.

“However, this should have been considered by the previous administration when it proceeded with finalizing the current subway alignment.”

He also said that President Ferdinand R. Marcos, Jr. and Transport department officials should decide whether rerouting the alignment is a feasible endeavor without delaying construction and incurring further costs.

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