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New York Times union members set to walk out on Thursday after talks fail

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More than 1,100 union employees at the New York Times Co. are set to walk out on Thursday for 24 hours as negotiations with the news publisher for a “complete and equitable contract” failed on Tuesday, the union said in a tweet.

The NYTimes NewsGuild last week had pledged to walk out on Dec. 8 if a contract was not reached by then.

The NYTimes NewsGuild has sought “complete and equitable contract” wages that “keep up with inflation” as well as to preserve and enhance health insurance and retirement benefits that were promised during hiring, according to a letter signed by 1,036 members last week. The number of signatories has since topped 1,100, the union said on Tuesday.

“Unless the company changes their tune and a deal is reached before Thursday, the work stoppage will officially start from midnight on December 8th and go for 24 hours,” the union said in a statement posted on Twitter.

The union said the New York Times during a meeting earlier in the day refused to meet for additional negotiating sessions to resolve the contract dispute by Thursday.

The New York Times in an emailed statement to Reuters said the union’s claims were inaccurate and negotiations were ongoing.

The union said that the walkout would be the first full-day work stoppage at the New York Times since the late 1970s.

The Times Guild represents journalists as well as ad sales workers, comment moderators, news assistants, security guards and staffers at The Times Center, the company’s events venue and virtual production studio.

Tech employees of the Times voted last March to unionize and have been trying separately to negotiate their first contract. — Reuters

Vietnam’s EV maker Vinfast files for U.S. IPO to fuel global expansion

Image source: https://vinfastauto.us/newsroom

HANOI – Vietnam’s electric-vehicle maker VinFast said on Tuesday it had filed for an initial public offering (IPO) in the United States to list on the Nasdaq under ticker symbol “VFS” to fund its expansion with a planned plant in North Carolina.

VinFast, which began operations in 2019, is gearing up to expand in the US market, where it hopes to compete with legacy automakers and startups with its two all-electric SUVs, the VF8 and VF9, including battery leasing to reduce the purchase price.

For the IPO, the company said it would convert to a Singapore public limited company and would be known as VinFast Auto Ltd, while the number of shares to be offered and the price range for the proposed offering had not yet been determined.

Citigroup, Morgan Stanley, Credit Suisse and JP Morgan are leading a nine-bank syndicate behind the deal, according to the company filing. If successful, VinFast will be Vietnam’s first company to list in the United States.

Tuesday’s filing follows VinFast’s confidential submission to the US Securities and Exchange Commission (SEC) in April, a month after it said it would build a production plant in North Carolina with an initial projected capacity of 150,000 EVs a year.

A unit of Vietnam’s biggest conglomerate Vingroup, VinFast first flagged its US IPO in April last year, aiming to raise $2 billion with valuation of about $60 billion.

The market valuation for EV startups has drastically cooled over the past year after some companies with sky-high valuations faced scrutiny, together with the gloomy global economy.

“Valuation or the size of our IPO will be subject, in part, to market conditions,” VinFast Chief Executive Le Thi Thu Thuy said in a statement released on Wednesday.

“VinFast will continue to monitor opportunities for future fundraises, as the market becomes more familiar with the VinFast brand and story,” she said.

The S&P U.S. & China Electric Vehicle Index, which measures the performance of companies involved in the EV business, has lost 33.51% since the beginning of the year and was at 1,933.47 at Tuesday’s close.

The company had said the IPO was just one option to raise funds. In July, it arranged with banks to raise at least $4 billion to fuel its aggressive expansion.

No time frame was specified for the offering on Tuesday although the company had said it aimed for an IPO in the fourth quarter of this year.

But in May, its parent company, Vingroup, warned that the IPO may be delayed to 2023 due to market uncertainty.

“VinFast intends to conduct an IPO after the SEC declares the registration statement effective, market conditions permitting,” Thuy said, noting the company’s primary objective was to successfully list VinFast on a US stock exchange.

The EV maker in late November shipped its first batch of 999 vehicles to the United States, capping a five-year bid to develop an auto production hub in Vietnam for markets in North America and Europe.

VinFast has said it has almost 65,000 orders globally and expects to sell 750,000 EVs annually by 2026.

Shares in VinFast’s listed parent company, Vingroup, which also has property and resort development businesses, were up 5.11% early on Wednesday following the IPO announcement. — Reuters

US to increase rotational military presence in Australia, invite Japan

STOCK PHOTO | Image by Military Material from Pixabay

WASHINGTON – The United States will increase the rotational presence of air, land and sea forces in Australia, including bomber aircraft and fighter jets, US Defense Secretary Lloyd Austin said on Tuesday, amid shared concerns about China.

Speaking after annual AUSMIN talks between the allies, Mr. Austin said the two countries also agreed to “invite Japan to integrate into our force posture initiatives in Australia.”

Mr. Austin did not detail when there would be an increase in the rotations, or how many troops, ships and aircraft they would involve, and it was unclear how the announcement differed from a similar statement more than a year ago.

“The United States and Australia share a vision of a region where countries can determine their own futures,” he told a joint news conference with his Australian counterpart that included the nations’ foreign ministers.

“Unfortunately, that vision is being challenged today. China’s dangerous and coercive actions throughout the Indo- Pacific, including around Taiwan, and toward the Pacific Island countries and in the East and South China Seas, threaten regional peace and stability,” he said.

In a joint statement, the sides said that “to strengthen US land presence,” they would expand locations for US Army and US Marine Corps forces in Australia.

It said they would also identify locations to support an enhanced US force posture with runway improvements, aircraft parking aprons and storage for fuel and munitions, and decided to preposition stores, munitions and fuel in support of US capabilities.

Washington sees Canberra as a vital partner in its efforts to push back against China and analysts say Australia could have a crucial logistical role to play in the defense of Taiwan against any move by Beijing to reclaim the strategic, self-administered island.

Taiwan’s Foreign Ministry, responding to the meeting, said the government would continue to work closely with the United States, Australia and other like-minded countries to protect security in the Taiwan Strait, expand Taiwan’s international space and defend democratic systems and shared values.

DEPLOYMENTS

Australia’s Northern Territory is already host to frequent military collaborations with the United States. Thousands of US Marines rotate through the territory annually for training and joint exercises.

The United States is planning to deploy up to six nuclear-capable B-52 bombers to an air base in northern Australia, a source familiar with the matter told Reuters in October.

Just before last year’s AUSMIN talks, the United States, Britain and Australia created a security deal, known as AUKUS, which will provide Australia with the technology to deploy nuclear-powered submarines.

The two sides said they had further discussions on that issue and Britain’s defense minister, Ben Wallace, will attend the first in-person meeting of AUKUS ministers on Wednesday in Washington.

The meetings come at a critical time for the partners, which are due to decide in March whether the submarine will be British or American, and set a road map for an Australian fleet.

Australia Defense Minister Richard Marles said Tuesday’s agreements would “see an increased level of activity between our two countries across all domains” and they were also looking at increased force-posture cooperation to enhance the capacity of facilities in Australia.

“It’s really important that we are doing this from the point of view of providing balance within our region and involving other countries within our region,” he said.

Marles said he and Foreign Minister Penny Wong would hold similar 2+2 talks with Japan in Tokyo this week “with an invitation for Japan to be participating in more exercises with Australia and the United States.”

He also said that the United States and Australia had taken steps on Tuesday “to create a more seamless defense industrial base” and that they needed to work together more closely “to enhance our military capability and to develop new technologies.”

The White House coordinator for the region, Kurt Campbell, said this year that “moving forward, everything we do of consequence in the Indo-Pacific, we will do with Australia.”

China is Australia’s largest trading partner and the top market for exported iron ore, but Canberra has grown increasingly concerned about Beijing’s military ambitions in the Indo-Pacific region, particularly after it struck a security pact with Australia’s neighboring Solomon Islands this year.

A meeting between Australian Prime Minister Anthony Albanese and Chinese President Xi Jinping last month at the G20 was a step towards normalizing ties but Australian diplomats said it would not bring a shift in Canberra’s defense policy. — Reuters

Australia targets SkyCity casino for money laundering amid gambling crackdown

STOCK PHOTO | Image by Joachim Kirchner from Pixabay

Australia’s financial crime regulator started civil proceedings against SkyCity Entertainment Group’s Adelaide casino on Wednesday, the latest in a series of actions by the government against the country’s gambling industry.

SkyCity, which is listed on the New Zealand bourse, was accused by the regulator, Australian Transaction Reports and Analysis Centre (AUSTRAC), of breaching anti-money laundering and counter-terrorism financing laws and could face hefty fines.

“AUSTRAC’s investigation identified a range of circumstances where SkyCity failed to carry out appropriate ongoing customer due diligence,” AUSTRAC Deputy CEO Peter Soros said in a statement.

“SkyCity also failed to develop and maintain a compliant AML/CTF program, leaving it at risk of criminal exploitation,” he added.

The company’s New Zealand-listed shares fell as much as 4% to NZ$2.61, hitting their lowest level since July 14.

SkyCity said in a statement that the regulator was yet to decide the level of penalty it intends to seek. If AUSTRAC’s claim was to be accepted in whole or in part by the federal court then SkyCity could be subject to a civil penalty “which may be material”, it said.

Casino operators in Australia have been dogged by damning reports of shirking anti-money laundering rules, dysfunctional governance and poor corporate culture, while COVID-19 curbs eroded their profits in the last two years.

The latest development follows an investigation by AUSTRAC in June last year, after probes in other Australian states found shortcomings at casino operators Crown Resorts and Star Entertainment Group Ltd.

Investigations into SkyCity found systemic failures in its approach to anti-money laundering and counter-terrorism financing laws, AUSTRAC said on Wednesday.

South Australia’s gambling regulator had also started an independent review of SkyCity’s Adelaide casino in July.

The government has been under pressure from consumer advocates and welfare groups to take a deeper look at the industry and bring in more controls on how much people can spend on gambling. Australia is already the world’s biggest gambling nation in terms of losses per person.

The problem worsened during the pandemic with more people getting addicted to online gambling. — Reuters

Solutions to improve learning systems for poverty discussed at the 2nd annual conference of Education@theMargins: A Global Alliance

Education has been in crisis even before the COVID-19 pandemic disrupted the sector and closed schools. But the global health crisis has worsened the learning situation.

The average global learning poverty rate in low- and middle-income countries was already estimated at 57% pre-pandemic. But due to the school closures, learning poverty in these countries increased to an estimated 70%, according to The State of Global Learning Poverty: 2022 Update. Learning poverty is defined as the inability to read and comprehend a simple text by age 10.

As the world looks to a better normal beyond the recovery from the pandemic, how can the education sector also bounce back and propel the learning of students, especially those at the margins?

This year, Education@theMargins (E@TM): A Global Alliance gathered education, policy reform, and community development experts from various countries in its second annual conference last Oct. 28 to talk about “Serving the Underserved: Learning Systems for Poverty.”

“We realize the problem is huge. And if there’s anything the past two years have taught us, problems know no boundaries, no political or geographical boundaries. Problems are global,” said PHINMA Education President and CEO Chito Salazar. “What vexes me is that while the problems are global and shared, we tend to look at solutions on a local level, on a domestic level, on our own. E@TM is an attempt to reach out, to find other kindred spirits who we can learn from [and] debate [with].”

“As we build our learning systems around low-income students, we’re actually creating a system that will contribute to the success of all other student groups,” said Nigel Cabison, chief analytics officer at PHINMA Education. “This is because the strategies that work for low-income, first-generation students are likely to be successful for the general student population as well. So there’s a lot of work before us, but we can take comfort from the fact that we are not alone in this crusade.”

Inequalities

Students at the margins experience inequalities concerning access, completion, and employability, according to Francis Larios, chief learning officer of PHINMA Education. And these inequalities are not just because of financial concerns, but also of their skills.

“For our students in Indonesia and the Philippines, the first thing is that, ‘Can I get into college? Can I pay for it? And even if I pay for it, do I have the reading and math skills to actually qualify or even make it through?’” Mr. Larios explained, giving an example of inequality in terms of access.

The inequality about completion, meanwhile, concerns the ability to reenroll in the following semesters, as well as the limited resources for first-generation college students in terms of asking for help from their parents or siblings in dealing with difficulties in college life.

Then, if students could finish their education, they might also face inequality in terms of employability, when compared, for instance, to their fellow jobseekers who are affluent and have networks.

“Those are things that challenge us to find ways to ‘game the system’ for our students,” said Mr. Larios.

Educating the family

To revise the problem in education for the generations to come, Dr. Charles Prince, chief higher education officer of Global Education Executives, Inc., believed that the family should also be educated, not just the students.

“We now have to educate the family. Because just educating one person, the child, or the age-relevant individual is no longer part of the system. We now have to educate mom and dad, grandma and grandpa, and uncle and aunt,” he said.

“The family is an economic unit now. It is not just one person to go off to work and bring the money back to the family. It’s everyone. So, now, we have to think about how we, as a university, bring everybody from that family onto campus to learn in a degree program,” he continued.

Noting that education in the 1800s or early 1900s used to be brought to the community and the family, Dr. Prince thus said, “We need to bring the education to them, not have them come to us.”

“We have to go back to a kind of an older system first to hit the reset button to make sure that our education people are trained [and] educated to their appropriate levels, and then we can start thinking about how the teacher can then close the equity gaps between those who are rich and poor,” he said.

Learning outside the classroom

Meanwhile, AfricaX Academy Founder Jessica Rees-Jones highlighted the need to learn beyond the classroom and the role that technology could play in it.

“When we talk about education, I would encourage that there is thinking outside the classroom, learning outside the classroom, that there is a lifelong learning approach from early childhood development through to adult learning, and inside and outside the classroom. And I think that’s where technology comes in,” she said.

“I think that’s going to shift a lot of how to address this. It’s not always about the money. When we say poverty, it can be education-poor; it doesn’t mean financially poor. And I think technology will be the enabler that will allow for a lot of those barriers to be broken down,” she added.

Ms. Rees-Jones also mentioned that technology could enable people to learn and produce content differently.

“You can still deliver quality content and quality learning experience, but you can change the behavior around it,” she said.

Having a growth mindset and a purpose

As the underserved get educated, they must also be nurtured to have a growth mindset and a purpose to achieve their dreams.

“I think the very serious problem of poor children is the lack of inspiration, confidence, and belief that they will be able to overcome. They’re probably just convinced that since their parents and grandparents were poor because of intergenerational poverty, they could no longer rise up from what they have. So there’s a ceiling there that blocks them,” said Dr. Nene Guevara, president of Synergeia Foundation.

Thus, for Synergeia’s part, they give hope and inspiration to children.

“The first thing is to let them stand up, let them dream, and tell and convince them that we’re here, you can become what you want to be, and all the skills will follow,” shared Dr. Guevara.

Meanwhile, Fahad Tanveer, co-founder and chief executive officer of EDKASA, mentioned their belief in the significance of giving young people a purpose.

“When you enter our office, the biggest thing you’ll see in front of you says, ‘The bridge between the world that you have and the world that you want is an education.’ So it’s something that we really believe in,” he shared.

“So, if you really want to achieve anything in your life, education will help you get there,” he added.

Education@theMargins (E@TM): A Global Alliance is an annual conference spearheaded by PHINMA Education.

 


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Manufacturing output increases in October

By Bernadette Therese M. Gadon

Factory output rose for the fifth straight month in October, the Philippine Statistics Authority (PSA) reported on Wednesday morning.

Preliminary results of the PSA’s Monthly Integrated Survey of Selected Industries (MISSI) showed the volume of production index (VoPI) went up by 5.1% year on year in October from the revised 4.1% in September. However, this was slower compared with the 27% growth posted in October 2021.

It was the sector’s fifth straight month of growth after the 0.5% decline in May. Year to date, factory output rose by 17.4%.

According to the statistics agency, 14 out of 22 industry divisions contributed to the growth led by manufacture of machinery and equipment except electrical with 81.8% in October, slower compared with the 88.9% in September, but faster than the 25.7% recorded in October last year.

This is followed by manufacture of beverages (61.7% in October from -6.4% in September); manufacture of chemical and chemical products (39.5% from 74.6%); and manufacture of fabricated metal products, except machinery and equipment (35.7% from 23.7%).

Manufacture of electrical equipment continued to decline by 56.9% in October from -55% in September. This was slower than the 42.3% growth recorded in October 2021.

Other industries that posted a decline in October were manufacture of basic metals (-23.4%), manufacture of furniture (-21.6%), and printing and reproduction of recorded media (-17.3%).

In comparison, IHS Markit’s Philippines Manufacturing Purchasing Managers’ Index (PMI) eased to 52.6 in October from 52.9 in September. A reading above 50 marks improvement for the manufacturing sector while anything below indicates deterioration.

The capacity utilization rate averaged 72.4% in October, up from 71.5% in September and 67.4% in the same month a year ago. All 22 sectors had an average capacity utilization rate of at least 50%.

Oct. jobless rate hit record low of 4.5%

The country’s unemployment rate continued to ease to record low of 4.5% in October under the 2005 revision of the Labor Force Survey, the Philippine Statistics Authority reported on Wednesday morning.

It was lower than 5% in September and the 7.4% in October last year. It was the lowest jobless rate under the monthly series and matched the unemployment rate in October 2019 under the quarterly series under the current definition dating back to April 2005.

Underemployment rate in October also eased to 14.2% from 15.4% in September and 16.1% in October 2021. It was the lowest in three months or since the 13.8% in July.

However, labor force participation rate slightly dipped to 64.2% in October from 65.2% the previous month. This was higher than 62.6% in October last year.

Employment rate, meanwhile, increased to 95.5% from 95% in September and 92.6% a year ago. — MIUC

Inflation sizzles to 14-year high of 8% in November

A market vendor arranges assorted vegetables inside the Quinta Market in Manila, Sept. 19. Vegetable prices continued to rise in November. — PHILIPPINE STAR/EDD GUMBAN

RISING FOOD PRICES pushed inflation to a 14-year high in November, the Philippine Statistics Authority (PSA) said on Tuesday.

Preliminary data from the Philippine Statistics Authority (PSA) showed headline inflation accelerated 8% in November, the most since the 9.1% print during the Global Financial Crisis in November 2008.

The latest print was faster than the 7.7% in October, and 3.7% in November 2021. It was also higher than the median estimate of 7.8% in a BusinessWorld poll of 15 analysts conducted last week, but within the 7.4-8.2% forecast range of the Bangko Sentral ng Pilipinas (BSP).

Headline inflation rates in the Philippines

November inflation also breached the BSP’s 2-4% target range for an eighth straight month. 

President Ferdinand R. Marcos, Jr. on Tuesday said that while the economic growth is healthy, inflation is “running rampant and out of control.”

“The main drivers of that inflation, unfortunately, are still imported… So again, import substitution is still a good idea not only for foreign exchange reserves but also so that we can keep our inflation rate down,” he said in a speech at the Arangkada Philippines Forum after the release of inflation data.   

For the January-to-November period, inflation averaged 5.6%, faster than the 4% in the same period a year ago. However, this was still below the BSP’s full-year forecast of 5.8%.

Month on month, the consumer price index (CPI) inched up by 0.9%. Stripping out the seasonality effects on prices, inflation dipped 0.7% in November from October’s 1%. 

Core inflation, which discounts volatile prices of food and fuel, climbed 6.5% in November from 5.9% in October and 2.4% in November 2021. In the eleven months to November, core inflation averaged 3.7%.

Divina Gracia L. Del Prado, PSA officer-in-charge and deputy national statistician, said at a briefing that November inflation quickened due to the spike in food prices, which reflected the spillover effect of the typhoon that hit the country in late October. Severe Tropical Storm Paeng (international name: Nalgae) that caused about P6.4 billion in agricultural damage.   

The heavily-weighted food and non-alcoholic beverages index rose 10% in November, from 9.4% in the previous month. This was the fastest rise in food inflation since September 2018.

“Higher prices of vegetables, fruits, and rice were a result of lower production brought about by the onslaught of typhoons and higher cost of inputs. Similarly, sugar production is still reeling from the damage caused by recent typhoons,” the National Economic and Development Authority (NEDA) said in a separate statement.

Vegetable inflation surged 25.8% in November (from 16% in October), while sugar, confectionery and desserts rose 38% (from 34.4% in October). Rice prices went up 3.1%, from 2.5% in the previous month.

Another driver of November inflation was the restaurants and accommodation services index, which jumped 6.5% in November, from 5.7% in the prior month, reflecting continued “revenge spending” by Filipinos.

Out of 13 commodity groups, 10 reported faster inflation in November, including alcoholic beverages (10.6% from 10.4% in October), clothing and footwear (3.6% from 3.1%), furnishings and household equipment (4.5% from 3.8%) and health (2.8% from 2.6%).

On the other hand, slower rates of increases were seen in housing, water, electricity, gas and other fuels (6.9% from 7.4% in October); and transport (12.3% from 12.5%).   

Ms. Del Prado said the rise in pump prices started to slow in November.

“Inflation is decelerating for petroleum products. So, if we see the effects of food prices (slow down), that might decrease (overall) inflation,” she said in a mix of English and Tagalog.   

PSA data showed inflation for the bottom 30% income households, which still use the 2012-based prices, rose to 7.7% in November — the highest since October 2018. This was faster than the 7.3% print in October and 4.2% last year.

For the 11-month period, the average inflation for this income group stood at 5.1%.   

“The government is continuously implementing targeted subsidies and discounts to allay the impact of the higher prices of essential goods, especially for the vulnerable sectors and low-income earners of our society,” Socioeconomic Planning Secretary and NEDA chief Arsenio M. Balisacan said in a statement.

Inflation in the National Capital Region (NCR) decelerated to 7.5% in November, from 7.7% in October and 2.2% a year ago.

Outside of NCR, consumer prices rose 8%, from 7.6% in October and 4% in the same month of 2021.

INFLATION TO SLOW
Ms. Del Prado said inflation can rise as much as 8.5% in December to hit the BSP’s full-year forecast of 5.8%.

“If headline (inflation) is lower than that, then average inflation for the year should also be lower,” she said, adding that inflation does not always peak in December.

The Development Budget Coordination Committee (DBCC) on Monday also raised its average inflation rate assumption to 5.8% this year, from 4.5-5.5%.

“Inflation is projected to decelerate in the subsequent months due to easing global oil and non-oil prices, negative base effects, and as the impact of BSP’s cumulative policy rate adjustments work its way to the economy,” the central bank said in a statement.

The BSP maintained it “remains prepared to take all further monetary policy actions necessary to bring inflation back to a target-consistent path over the medium term.”

The BSP has raised the key policy rate by 300 basis points (bps) to 5% since May to curb soaring inflation. The Monetary Board’s last policy review meeting for the year is on Dec. 15.

Finance Secretary Benjamin E. Diokno said in a separate statement that inflation is expected to ease by the second half of 2023, averaging between 2.5-4.5%.

Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said the November inflation print showed that food continues to drive inflation higher amid supply issues in the agriculture sector and the impact of recent typhoons.

“Distribution of food products remains expensive given the elevated price of oil… Even if oil prices have stabilized recently, the pressure on consumer prices may not ease until the second half of 2023,” he said in a note.

Despite the faster November print, Mr. Neri said inflation may be nearing its peak.

“We expect a decline in the coming months mainly due to the stabilization of oil prices recently,” he said. “Given the outlook for inflation, there is a compelling reason for the BSP to continue hiking interest rates.”

In a note on Tuesday, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said headline inflation could still peak in December and slow in January, but inflation will not decelerate quickly similar to what happened in 2018.   

“We do believe inflation will grind lower and not repeat the quick deceleration we saw in 2018. High inflation has ‘infected’ roughly 60% of the CPI basket showing us that price pressures are now more broad-based,” he added.

Mr. Mapa said the BSP will likely remain hawkish at its meeting next week.

“Demand-side pressures remain evident after items related to ‘revenge spending’ experienced quicker inflation. Thus, we expect BSP to carry out a 50-bp increase next week or matching any rate increase by the Fed,” Mr. Mapa said. — Keisha B. Ta-asan

World Bank lowers 2023 PHL growth forecast

More policemen are deployed in Divisoria, Manila as the shopping area is expected to draw bigger crowds ahead of the holidays, Dec. 1. — PHILIPPINE STAR/EDD GUMBAN

THE WORLD BANK upgraded its growth forecast for the Philippines this year but expects the economy to expand at a weaker pace in 2023 amid a global slowdown and elevated inflation.

In its Philippines Economic Update report, the multilateral lender raised the Philippines’ gross domestic product (GDP) growth outlook to 7.2% this year, from the 6.5% given in September. This is at the upper end of the government’s 6.5-7.5% goal this year.

World Bank Country Director for the Philippines Ndiame Diop said at a virtual briefing on Tuesday that strong domestic demand is driving economic growth this year, contributing to the recovery in jobs and income.

The economy expanded by 7.6% in the third quarter, bringing the nine-month average to 7.7%.

“The Philippine economy has remained resilient despite a challenging global environment,” World Bank Philippines Senior Economist Ralph van Doorn added.

However, the World Bank warned growth momentum may slow starting next year, as it trimmed the GDP growth projection to 5.7% for 2023-2025, from 5.8% previously.

“The growth slowdown in 2023 is premised on the fading of pent-up demand, alongside elevated inflation and higher interest rate environment that will temper domestic demand,” the World Bank said.

Mr. Diop said this outlook is premised on a sharp slowdown in global growth, and moderate shocks that can push the world’s economy into a recession, which “will have dire consequences in the recovery of emerging markets like the Philippines.”

The World Bank expects global growth to decelerate in 2023, due to global monetary tightening, worsening financial conditions and disruptions caused by the war in Ukraine.

“These external challenges have channeled through the Philippines in the form of high inflation, peso depreciation, and capital market volatility,” it added.

Inflation quickened to a 14-year high of 8% in November, bringing the 11-month average to 5.6%.

The BSP’s average inflation forecast is at 5.8% this year, 4.3% in 2023, and 3.1% in 2024.

“We see inflation will continue to rise. We expect inflation to peak in 2023. This is premised on the second-round effects, not only has headline inflation increased through food and fuel prices, it has crept into core inflation,” Mr. van Doorn added.

Higher interest rates may temper growth in private lending and investments at a time when the government is expected to implement measures to rein in the deficit and slash debt, the World Bank said.

Since May, the BSP has raised borrowing costs by 300 bps, bringing its key policy rate to 5%. 

“Continued near-term monetary tightening is appropriate to prevent a de-anchoring of inflation expectations,” the World Bank said.

The World Bank recommended that the Philippine government focus its policies on addressing the immediate challenge of elevated inflation, staying the course on fiscal consolidation, sustaining investments in health and education, and reversing the low agricultural productivity.

“The immediate challenge is to address rising inflation. This means employing both monetary and non-monetary measures, like lower tariff barriers, supporting agriculture production, and rate hikes to prevent the de-anchoring of inflation,” Mr. van Doorn said.

For fiscal consolidation, he said targeted social measures are important to manage spending.

“It’s important to eliminate spending inefficiency and add new tax measures to mobilize revenues,” he added.

Mr. van Doorn said that sustaining investments in health and education to reduce vulnerabilities from the scarring impact of the pandemic remains important.

Agriculture is also a key sector that the government must prioritize if it seeks to accomplish its development goals.

“Over the medium term, public spending on agriculture will address low productivity and food security in the country. While agriculture is only 10% of GDP, it deploys a disparate share to labor force and food production is influential to bringing down inflation,” Mr. van Doorn said. — Luisa Maria Jacinta C. Jocson

Bill seeks to require NEDA Board OK only for projects over P5B

PHILIPPINE STAR/ RUSSELL PALMA

By Arjay L. Balinbin, Senior Reporter

A PROPOSED MEASURE seeks to require National Economic and Development Authority (NEDA) Board approval only for projects worth over P5 billion.

Newly filed House Bill (HB) No. 6527 states that “upon favorable recommendation” of the NEDA Investment Coordination Committee (ICC), only projects that cost more than P5 billion will be submitted to the NEDA Board for approval.

The substitute bill, which seeks to amend the Build-Operate-Transfer (BOT) Law, was filed on Tuesday by House Ways and Means Committee Chairman and Albay Rep. Jose Ma. Clemente S. Salceda.

Under the current BOT Law’s implementing rules and regulations, projects that cost more than P300 million need to be submitted to NEDA Board for approval upon the recommendation of NEDA ICC.

The NEDA Board is chaired by the president of the Philippines.

This would remove a significant bottleneck for many projects as these would no longer need the president’s approval, Public-Private Partnership Center Deputy Executive Director Jeffrey I. Manalo said in an interview on the sidelines of the Arangkada Philippines Forum in Pasay City on Tuesday.

Mr. Manalo said President Ferdinand R. Marcos, Jr. wants to improve PPP policies “to address bottlenecks and ambiguities and improve competition.”

Under HB 6527, projects that cost between P2.5 billion to P5 billion only need to be submitted to the NEDA-ICC for approval.

For projects that cost below P2.5 billion, it would only require approval from heads or boards of implementing agencies.

The proposed measure also allows NEDA-ICC to update the amounts “when the need arises.”

This is to “future-proof” the law, according to PPP Center’s Mr. Manalo.  “This is so we do not need to change the law if we need to update the numbers.”

At the same time, he noted that the bill recognizes the autonomy of local government units.

Under the bill, local governments will approve their own projects “regardless of project cost.”

“Prior to approval, projects implemented by LGUs (local government units) shall be confirmed by the respective local development council,” it said.

However, PPP projects undertaken by local governments that would affect national development or master plans and national projects should “secure the endorsement of the National Government.” 

During the Arangkada forum, NEDA Undersecretary Rosemarie G. Edillon noted that the proposed measure ensures that the identification of PPP projects is guided by the principles set by the government, including “effectiveness in meeting government objectives; appropriateness of the chosen procurement modality; value for money, accountability, and transparency; and public, access, safety, and security.”

Senator Francis N. Tolentino said at a recent budget hearing for NEDA that investors seeking to build local government transport infrastructure are deterred by the low threshold for triggering mandatory national government review.

Senator Juan Edgardo M. Angara said the process of adjusting thresholds should be indexed to inflation.

Sought for comment, Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said in a phone message: “Government should limit the highest regulatory scrutiny (i.e. NEDA Board approval) only to the most important PPP projects which have threshold project costs of P10 billion and above.”

“Almost all current PPPs with national significance, such as new train lines and expressways, have project costs way beyond P10 billion,” he added.

Mr. Ridon said all other projects with estimated costs between P2.5 billion to less than P10 billion can then be approved at the ICC level while projects below P2.5 billion can be approved by agencies, local governments or government-owned and -controlled corporations (GOCCs).

“It should be noted that our proposal limits the approval authority of agencies, local governments and GOCCs similar to the pending bills as projects higher than P2.5 billion should be subjected to greater scrutiny by an interagency panel such as the ICC. This ensures greater transparency and accountability in conducting PPPs,” he added.

MAP pushes for creation of public-private sector advisory council

BW FILE PHOTO

THE MANAGEMENT ASSOCIATION of the Philippines (MAP) is seeking the creation of a public-private sector advisory council for various sectors, in order to improve transparency and accountability in terms of government contracts.   

“We suggest a strong joint public-private sector advisory council for specific areas like agriculture, trade and investment, infrastructure projects, energy, and water,” MAP President Rogelio L. Singson said during his keynote speech at the Arangkada Philippines Forum in Pasay City on Tuesday. 

For instance, Mr. Singson said the government may discuss the draft concept of a project with the private sector and potential investors before the final terms of reference are published.

“This opens us for transparency and accountability,” he added.   

Mr. Singson said collaboration between the public and private sectors is essential and “will definitely redound to the faster economic recovery of the Philippines.”

He noted there should be more cooperation among government infrastructure agencies, and that the roles and responsibilities are “clearly defined” in the review and approval process of public-private partnerships (PPP).   

“There are just too many reviews and government institutions involved in the review process… Another area of improvement is for government infrastructure agencies to get together and make sure that all government infrastructure projects being implemented are coordinated according to a government infrastructure master plan,” Mr. Singson said.

“More often than not, many of the delays in PPP projects whether local or foreign investments are due to the delays in the delivery of government responsibilities,” he added.   

Meanwhile, Shinichiro Shimada, Japanese Chamber of Commerce and Industry of the Philippines president, said the Philippines can maximize its potential if it continues to “reform, rebuild, and recover.”

“We believe in the enormous potential of the Philippines as a foreign direct investment destination and the capability of the Philippine government with support from private sector to pursue and implement the necessary reforms and policies to improve the investment climate and competitiveness of the country,” he added.    

Meanwhile, Chamber of Mines of the Philippines Chairman Michael T. Toledo said the mining industry could recover with the help of stable regulations.   

“As long as these minerals are on the ground, these are worthless. We need to bring them out of the ground… What we need is a stable regulatory and legal framework. A business cannot plan long term if after passing a law, suddenly after one or two years, you change,” Mr. Toledo said. — R.M.D.Ochave 

Five tips to stay healthy amid the holiday feasting

UNSPLASH

THE HOLIDAYS shouldn’t be used as an excuse to binge-eat, warned a dietitian. 

Christmas is just around the corner and with it comes an abundance of delicious food, whether it’s at the family noche buena, a gathering with friends, or an office Christmas party.   

“To eat smart, you have to have a balanced diet and be mindful of your body’s needs. This should stay the same even during the holidays,” said Dr. Virgith B. Buena, a dietitian and nutritionist at the Cardinal Santos Medical Center, who shared healthy eating tips for this year’s festivities in a Dec. 2 webinar hosted by the University of the Philippines.   

Drink lots of water.  

Water, which makes up about 60 to 70% of the human body, serves as a solvent for all nutrients and aids in the transport of these nutrients to the different parts of the body.  

Even if one eats lots of food, water is still needed for the body to get as much nutrients from the food as possible, said Dr. Buena.  

Drinking water will also avoid dehydration.  

Learn to read a nutrition label.  

The nutrition facts printed on containers of food items can be a guide to ensuring a balanced diet. Dr. Buena suggested starting with the serving size and number of calories to know how much an item contributes to one’s daily intake.  

Next up is to try and limit eating food with high levels of fat and cholesterol, which are weighted in grams on the nutrition facts label.   

“The nutrients you have to get a lot of are vitamins like Vitamin A and C,” she said. These are found in fruits and vegetables.  

Stick to regular mealtimes.  

“Eat a variety of nutritious foods in moderate amounts and stick to regular mealtimes,” Dr. Buena said.  

Variety and regularity will provide the body with what it needs during the energy-intensive season.   

Skipping meals, usually breakfast, just to feast on a large meal for lunch and/or dinner is a common unhealthy habit. Since the body seeks regular nutrition, depriving it of food will encourage gorging later on.   

Instead, practice mindful eating, which is a form of “loving yourself,” she said.  

Eat vegetables and fruits first.  

When a spread includes salad, it’s always best to eat greens first.   

“When you eat this ahead of heavier portions of a meal, it reduces your food intake. You end up eating less of what comes after,” said Dr. Buena.  

This is also true for fruits served as snacks before mealtimes.   

Think small and frequent, and enjoy.  

It’s bad to think of holiday eating as long periods of fasting followed by large, sumptuous feasts. The key to staying healthy is to stick to small and frequent meals, neither dieting excessively nor eating excessively.  

Don’t obsess over avoiding carbs, Dr. Buena added.  

“There’s no such thing as zero carbohydrates. Fruits have carbs, vegetables have carbs. It’s important because it’s our main source of energy,” she said. 

She recommended that diabetics who need to control sugar levels but still crave sweet Filipino desserts should only have a taste, to satisfy the craving but not gorge on it.  

“Eat better, not less,” she said. — Brontë H. Lacsamana