The next president of the Philippines should prioritize health, education, and job generation, according to voters residing in the National Capital Region aged 20- to 40-years-old.
In this Vox Populi feature, BusinessWorld asked: “What do you look for in a president?” and “What should the next president prioritize?”
“Gusto ko yung president na laging present sa mga sakuna [I want a president who’s always there, especially in a crisis],” said Kim, 22.
“Hindi makakapaglingkod ang isang presidente kung… wala siya ideya sa kalagayan, pangagailangan, at ano ang mga dapat na unahin nung kanyang pagsisilbihan [A president cannot serve if… he/she has no idea about the conditions and needs of the nation],” said Jenilyn, 24.
Fighting against corruption ranked high among respondents.
“Matalino, matapang, walang bahid ng corruption [Intelligent, brave, not a whiff of corruption] …a leader by example,” said Ganders, 43.
Joel, 44, is likewise looking for a quality other than competence: “I’m looking for a president with moral ascendancy.”
Added Patricia, 26, “I don’t want to hear about pending cases for graft, corruption, tax evasion cases, murder … Ideally, they’re an expert in both study and experience. I want them to use these skills to crack down on corruption.”
Given the reality of the pandemic, recurring concerns on health and livelihood surfaced.
“For me, the president should prioritize the improvement of health and education systems, and the provision of jobs in order to revitalize our economy,” Yelena, 32, said. “He or she should look for the root causes of our problems.”
A lot of people lost their jobs these past few years, noted Tonio, 22.
“It would be best if matulungan yung mga nawalan ng trabaho [It would be best if those who lost their jobs were helped],” he said.
Education and livelihood were identified as top priorities as well.
“Gusto ko yung makarating tayo sa punto na hindi na iniisip ng bawat Pilipino na kailangan nila mangibang bansa para may pangtustos sila sa pangangailangang nila sa bahay, or sa family nila [I want the country to get to the point where Filipinos won’t need to work overseas just to feed their families],” said Star, 27. “Like yung mga nurses natin, ‘di ba? Mababa masyado sahod nila… [Like our nurses, right? Their salaries are so low].”
RJ, 25, said education has taken a hit due to the onslaught of disinformation.
“To protect our future, we must protect our children. We must protect our education,” he said. “That is how we can progress as a nation.” — Patricia B. Mirasol with reports from Brönte H. Lacsamana and Earl R. Lagundino
Vox Populi is a compilation of informal man-on-the-street interviews. It is not a scientific poll and may not necessarily reflect the opinions of the public as a whole.
VELENCE, Hungary/WARSAW/PRAGUE — War may be raging on their doorstep but Central Europe’s economies are outpacing their euro zone peers as consumer spending booms. A reversal could come as soon as this summer, however, leaving a painful, inflation-laced hangover.
Economists are already sounding the alarm about inflation momentum in Hungary and Poland, fueled partly in both countries by government transfers to households that helped supercharge demand in the first quarter.
Sharp interest rate rises have so far failed to curb price pressures, as a region-wide shortage of workers pushes up wages and the conflict in Ukraine causes energy prices to soar.
At the Velence Resort and Spa, beside a lake just four hours’ drive from Hungary’s border with Ukraine, director Peter Barsony expects a bumper 2022, with a strong increase in weekend bookings since February despite recent price rises.
“Unless trends change, this will be a substantially better year than last in terms of revenue,” Mr. Barsony said. “The purchasing power of Hungarians has definitely not deteriorated for the time being.”
Hungarian retail sales surged by an annual 16.2% in March, driven by higher spending on fuels and non-food items.
While economic fundamentals are strong, consumer spending has been boosted by Prime Minister Viktor Orban’s pre-election wage hikes and handouts to families. In Poland, robust growth in retail sales after pandemic restrictions were lifted has been further supported by spending on millions of refugees fleeing neighboring Ukraine.
Hundreds of thousands of Ukrainians have also poured into Hungary, like Poland, a member of NATO, since Russia launched its invasion on Feb. 24.
As Europe heads into what Mr. Orban described last week as a “decade of peril,” with the war escalating an energy crisis, central banks are struggling to contain inflation that has blasted past their targets and is on track to reach 14% to 15%.
‘DONE IN TWO SENTENCES’
Zsolt Csombok, a 51-year-old IT services entrepreneur, has raised wages three times over the past year — Hungarian unemployment is at a record low — and increased his company’s hourly fees by 25% to 30% to cover that and other expenses.
He says his clients, similarly plagued by supply chain issues and rising costs, have simply accepted the price hikes, signaling strong demand-side inflation pressures.
“Something which would have taken tough negotiations to push through just a year ago can now be done in two sentences,” Mr. Csombok said.
Projecting first-quarter growth at 7% to 8%, Hungary’s central bank, already in its third-steepest tightening cycle since Communist rule ended in 1989, has warned Mr. Orban to start rebalancing the economy. Core inflation, which strips out volatile energy and food, hit a near 21-year high in March.
“Tighter policy is needed to take the heat out of domestic demand,” said Liam Peach at Capital Economics.
“This will require a combination of tax hikes, spending cuts as well as interest rates rising above 8% for a prolonged period of time to cause GDP growth to weaken.”
In Poland, retail sales beat forecasts in March and returned to their pre-pandemic trend, economists at Bank Pekao said, while warning of “bleak” consumer prospects for later 2022 as the war sours sentiment. Most respondents in an April survey nevertheless said they were not worried about job security.
Maciej Skurczynski, a 34-year-old specialist in industrial real estate, said he was unsettled by the conflict, but trying to live a normal life.
“We can only live or we can stay at home. And I prefer to live,” Skurczynski said as he finished off a lunchtime burger at a food hall in central Warsaw.
DEMAND-DRIVEN INFLATION
With inflation still rampant, the Polish and Czech central banks are set to hike borrowing costs again on Thursday.
Hungary’s central bank has raised its base rate by nearly 500 basis points since June, but government price controls, wage hikes and caps on mortgage rates are acting as a counterweight.
“Pre-war data from retail, industry, and construction sectors, and even the latest big data, are suggesting surprisingly strong first-quarter GDP growth,” ING economist Peter Virovacz said.
“This could mean a wider positive output gap, translating into longer and stronger demand-driven inflation for the remainder of the year, in our view.”
The Czech economy grew by a better-than-expected 4.6% year-on-year in the first quarter, but with less government help for households facing double-digit inflation, consumer confidence hit its lowest in nearly a decade in April.
Central bank Vice-Governor Marek Mora told Reuters on April 26 that he foresaw a 6% to 8% fall in real wages this year.
And some companies are already bracing for when consumer appetite, buoyed recently by savings accrued during COVID lockdowns, cools further.
“People are still buying our products and volumes are increasing,” Martin Pisklak, chief financial officer of Czech soft drinks maker Kofola Ceskoslovenkso, told an analyst call last month.
“But with the high numbers in inflation, we expect in the second half of the year or during the next winter, there will be pressure on the volumes for sure because of the lower purchasing power of our consumers.” — Gergely Szakacs, Alan Charlish and Jason Hovet/Reuters
WASHINGTON – The Federal Reserve on Wednesday raised its benchmark overnight interest rate by half a percentage point, the biggest jump in 22 years, and the U.S. central bank’s chief made an appeal to Americans struggling with high inflation to be patient while officials take the hard measures to bring it under control.
In a widely expected move, the Fed set its target federal funds rate to a range between 0.75% and 1% in a unanimous decision, and Fed Chair Jerome Powell said policymakers were ready to approve half-percentage-point rate hikes at upcoming policy meetings in June and July.
The level of specificity – effectively announcing Fed rate hikes in advance – was unusual, but reflected Powell steering a course between high inflation that requires a strong Fed response, and trying to avoid the sort of overkill that might tip the economy into recession.
In a news conference after the release of the Fed’s policy statement, Powell explicitly ruled out raising rates by three-quarters of a percentage point in a coming meeting, a comment that triggered a stock market rally.
But he also made clear the rate increases the Fed already has in mind were “not going to be pleasant” as they force Americans to pay more for home mortgages and auto loans, and possibly dent asset values.
The Fed also said it would start next month to reduce the roughly $9 trillion stash of assets accumulated during its efforts to fight the economic impact of the coronavirus pandemic as another lever to bring inflation under control.
“It’s very unpleasant,” Powell said of the impact on households of inflation, which is running about three times the Fed’s 2% target. “If you’re a normal economic person, then you probably don’t have … that much extra … to spend and it’s immediately hitting your spending on groceries … on gasoline on energy and things like that. So we understand the pain involved.”
STABLE PRICES
Powell told reporters that he and his Fed colleagues were determined to restore price stability even if that meant steps that would lead to lower business investment and household spending, and slower economic growth. The implications of inflation getting out of hand, he said, were worse.
“In the end, everyone is better off … with stable prices,” Powell said.
Still, Powell said he felt the U.S. economy is performing well, and strong enough to withstand the coming rate increases without being driven into recession or even seeing a significant rise in unemployment.
Despite a drop in gross domestic product over the first three months of this year, “household spending and business fixed investment remain strong. Job gains have been robust,” the central bank’s Federal Open Market Committee said in its policy statement.
Officials sharpened their description of the risks for elevated inflation to persist, especially with factors that have arisen since the start of the year, including the war in Ukraine and new coronavirus lockdowns in China.
“The Committee is highly attentive to inflation risks,” the Fed said in language analysts interpreted as a sign of the Fed’s commitment to push interest rates as high as needed to get inflation, and the expectations surrounding its future path, back to the 2% target.
BALANCE SHEET REDUCTION
The statement said the Fed’s balance sheet, which soared to about $9 trillion as the central bank tried to shelter the economy from the pandemic, would be allowed to decline by $47.5 billion per month in June, July and August and by up to $95 billion per month starting in September.
Policymakers did not issue fresh economic projections after this week’s meeting, but data since their last gathering in March have given no definitive sense that inflation, wage growth, or a torrid pace of hiring had begun to slow.
U.S. stock markets jumped following the announcement, extending gains after Powell poured cold water on the idea of hiking rates by three-quarters of a percentage point. The S&P 500 index closed about 3% higher, notching its biggest one-day percentage gain in nearly a year.
Yields on government bonds fell sharply in volatile trading while the dollar weakened against a basket of major trading partners’ currencies.
“This one has been well communicated and well delivered,” said Simona Mocuta, chief economist with State Street Global Advisors. “There is an awareness that they are tightening into a slowing economy and there are risks associated. For the magnitude of the move it has been very uneventful, and that is a good thing.” — Reuters
Treat your Wonder WoMoms to an #AweSM day this Sunday
If there’s one thing that our #SuperMoms love about Mother’s Day, it’s spending quality time with the whole family. This Sunday, make the day extra special when you celebrate at SM Supermalls!
Got no idea what to do this weekend? Don’t worry because SM Supermalls’ got your back! Get awesome discounts on food, shopping, and pampering for your #SuperMoms at SM!
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SM Center Lemery
SM City Legazpi
Cater to her cravings and give her a memorable feast
Treat mom to a scrumptious meal in the mall or at home because SM Supermalls has all the perfect deals for you. From May 1-8, there are a lot of SuperMoms Deals from the participating tenants to choose from! Just check out SM Deals for the full list of exciting deals and promo bundles.
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SM City Lipa
SM City Marikina
Grab a sweet treat at the SuperMoms Fair
Short on gift ideas for the #SuperMoms on your list? The SuperMoms Fair has all the hearty treats that #SuperMoms will really love. SM tenants will be selling different cakes and flowers so you can indulge your moms, grandmas, titas, sisters, and all other momma figures out there this Mother’s day!
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SM City Olongapo Central
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Take her to the cool SuperMom Photo Spots
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SM Mall of Asia
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Give her a treatment fit for a queen
The queens of our household really deserve VIP treatment. Give her convenient and safe ways to get her celebration essentials at SM. There are dedicated exclusive sales, vouchers, and promotions, as well as discounts for advance reservations or online orders just for them!
Arrange a special day for furmoms and their pets
There are different types of moms and this includes furmoms, too! Indulge furmoms and their furbabies in a bonding treat like no other! Pawsome activities await them like the PAW Pageant where they can wear twinning outfits as well as paw-friendly games that both of them can join.
Dedicate some prayer time for the #SuperMoms
Motherhood is not only physically demanding; it can be spiritually demanding, too! So to celebrate this special day, SM Supermalls will be hosting a Mother’s Day Mass at the malls’ event centers or chapels which will also be live-streamed via Facebook. Moms pray for our wellbeing all year round, so this Sunday, make it your time say a prayer for thank you for our #SuperMoms.
“This day, we honor our wonderful SuperMoms who have been there for us all throughout our lives. Their unconditional love and hard work for the family are truly remarkable and incomparable. And as they look forward to celebrating this day with us, it’s our goal to make it even more special as we help you create more memories together here at SM in a safe and fun way,” said SM Supermalls President Steven Tan.
No think to overthink this. Plan the best, most convenient, and safest Mother’s Day celebration for your SuperMoms this Sunday at your nearest SM Supermall!
Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.
Prices growth of widely used goods and services accelerated to its quickest pace in more than three years in April due to faster pickup in food, utilities, and transport prices, the Philippine Statistics Authority reported this morning.
April’s inflation rose by 4.9% from 4% in March and 4.1% in April a year ago, preliminary data from the agency showed.
This was higher than the 4.6% median estimate in a BusinessWorld poll last week and near the upper bound of the 4.2-5% forecast range given by the Bangko Sentral ng Pilipinas for the month. It also breached the central bank’s 2-4% target range.
It was the quickest pace in 40 months or since the 5.2% print in December 2018.
Month on month, inflation inched up by 0.8%. Seasonally adjusted, April’s inflation steadied by 1% month on month.
Inflation averaged 3.7% in the four months to April, higher than 4.1% seen in the same period last year.
Heavily weighted food and non-alcoholic beverages index grew 3.8% in April from 2.6% in March. Housing, water, electricity, gas, and other fuels index rose by 6.9% in from 6.2% the prior month. Transport also climbed 13% from 10.3%.
Meanwhile, the April inflation rate for the bottom 30% of households, which is still using the 2012-based prices, increased by 3.8% from 3.3% in March, but lower than the 4.9% in April 2021.
The PSA said the rebased 2018-based inflation for poor income households is scheduled to be released in December 2022. — K. B. Ta-asan
Commuters queue at the Metro Rail Transit Line 3 North Avenue Station in Quezon City, March 28. — PHILIPPINE STAR/ MIGUEL DE GUZMAN
THE COUNTRY’S job market is on track to bounce back to its pre-pandemic level by the second half of 2022, as business activity improves with the easing of mobility restrictions.
“We are optimistic that we will hit the 5% unemployment this year,” Labor Undersecretary Benjo Santos M. Benavidez said in an interview with ABS-CBN News Channel on Wednesday.
“Barring any surge in COVID-19 (coronavirus disease 2019) cases, we expect that by next semester we will recover the employment rates to pre-pandemic level… Since we are already opening the economy, we are expecting to rebound to the pre-pandemic level of employment and underemployment,” he said.
In 2019, the annual unemployment rate — the share of the unemployed to the total labor force — stood at 5.1%. It more than doubled to 10% in 2020 as many businesses were forced to shut down due to the pandemic. The jobless rate improved to 7.8% in 2021.
Job quality — as measured by underemployment rate or the proportion of those employed who wants additional job or longer working hours — was at 13.8% in 2019. During the pandemic, it rose to 16.4% and 15.9% in 2020 and 2021, respectively.
In February, the jobless rate stood at 6.4%, representing 3.126 million unemployed Filipinos. The Philippine Statistics Authority (PSA) will release the Labor Force Survey for March on Friday. The data is expected to reflect the impact of the further easing of pandemic restrictions during the month.
Metro Manila and other areas were placed under the most lenient Alert Level 1 in March as the number of COVID-19 cases dwindled.
Employers Confederation of the Philippines President Sergio R. Ortiz-Luis, Jr. said that the government’s optimistic outlook for the labor market may be due to the lower alert levels.
Government projects such as Reform, Rebound, Recover: One Million Jobs for 2021 also helped in providing opportunities for qualified yet unemployed jobseekers, Mr. Ortiz-Luis said in a phone interview.
“Still, we should address issues that would hinder our progress. Hopefully, the next administration will address issues in the agricultural sector, mining, manufacturing, and construction. And hopefully, the quality of jobs will improve,” he added.
“The tourism sector will take a while to recover. We cannot control the arrivals of visitors. We still have problems in transportation in Metro Manila. Thankfully our domestic sector is improving,” Mr. Ortiz-Luis said.
The Labor department’s Mr. Benavidez said that the next administration should prioritize economic recovery that “will generate more employment opportunities especially in the service sector, education, and the tourism industry.”
Trade Union Congress of the Philippines Spokesperson Alan A. Tanjusay said that the outcome of the May 9 polls and the policies of the next administration will influence the employment situation in the country.
“If those process would be positive and favorable, investments and investors will come and invest and would hopefully create quality jobs,” Mr. Tanjusay said in a text message.
JOBLESSNESS IN OLONGAPO Meanwhile, Olongapo City logged the highest unemployment rate among highly urbanized cities (HUCs) and provinces in 2021, the Philippine Statistics Authority (PSA) said.
Olongapo City had a jobless rate of 14.4% in 2021, more than double the national average of 7.8%, according to the preliminary results of the agency’s Annual Provincial Labor Market Statistics report. This was equivalent to about 14,668 unemployed persons in Olongapo City last year.
Other HUCs and provinces that recorded double-digit unemployment rates were Camarines Norte (14.1%, equivalent to 33,188 jobless people); Marikina (12.9%, 26,247); Malabon City (12.7%, 19,946); and Taguig City (12.4%, 51,762).
Meanwhile, Agusan del Sur logged the highest underemployment rate at 51.6%, equivalent to 177,443, against the national underemployment rate of 15.9% in 2021.
The underemployment rate represents the total number of persons who want to have additional work hours or an additional job to the total employed population.
Other HUCs and provinces that saw elevated underemployment rates were Occidental Mindoro (42.3%, equivalent to 90,908); Aurora (41.6%, 39,140); Zamboanga Sibugay (40.3%, 118,053); and Apayao (38.8%, 19,206).
In terms of employment rate, Surigao del Sur had the highest at 97.7%, followed by Lanao del Norte and South Cotabato both with 97.6% and Batanes and Mountain Province both with 97.5%.
Bukidnon posted the highest labor force participation rate at 78.3%, followed by Ilocos Norte (77.6%); Agusan del Sur (76.7%), Mountain Province (75.9%); and Zamboanga del Norte (74.9%).
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the high jobless rate in Olongapo City due to the strict quarantine restrictions that affected many tourism-related businesses.
“The significant reduction in tourism largely due to the COVID-19 restrictions and lockdowns could have led to reduced jobs or employment opportunities in these areas,” he said in a text message.
Strict lockdowns were implemented in many parts of the Philippines to curb the surge in COVID-19 infections last year. Restrictions were only eased starting November as the country shifted to an alert level system with granular lockdowns.
Mr. Ricafort expressed optimism the labor market will recover this year.
“Further reopening of the economy towards greater normalcy, boosting foreign and local tourism, resumption of in-person schooling, among other measures to further reopen the economy could help further improve economic recovery prospects including the creation as well as recovery of some of the lost jobs in those areas,” he said. — Keisha B. Ta-asan and Mariedel Irish U. Catilogo
THE Bureau of Customs raised P6.3 million from an auction of forfeited luxury vehicles on April 27. — BUREAU OF CUSTOMS
THE BUREAU of Customs (BoC) on Wednesday said it surpassed its April collection target by 20%, as the value of imported oil continued to climb.
In a statement, the BoC said it collected P65.7 billion in April, 19.6% higher than its P54.9-billion target for the month.
“The collection performance is attributed to the improved valuation, intensified enforcement against illegal importations, and the improved compliance by traders to customs laws,” BoC said.
April marked the fourth month in a row that Customs has exceeded its monthly collection goals.
Last month’s collection showed a 28% increase from the P51.28 billion collected in April 2021, but 7% lower than the record-high P70.72 billion logged in March.
BoC Spokesperson and Assistant Commissioner Vincent Philip Maronilla said the high volume and value of imported oil products only partly contributed to the increase in BoC collections in April.
“Our continued effort towards a more efficient and effective collection again proved to be the right formula,” he said via Viber message.
The BoC in March saw significantly higher collections from oil products after crude prices soared in the aftermath of Russia’s invasion of Ukraine.
Citing a preliminary report from the BoC-Financial Service, the bureau said 14 of the 17 collection districts hit their targets in April.
These were the ports of San Fernando, Manila, Batangas, Legaspi, Iloilo, Cebu, Cagayan de Oro, Zamboanga, Davao, Subic, Clark, Aparri, and Limay, as well as the Manila International Container Port (MICP).
The strong collections in April pushed the four-month total to P253.62 billion, which makes up nearly 37% of the 2022 collection target of P679.226 billion.
“For the past 2 years, the BoC was able to surpass its annual target collection by +6.23% and +4.35% respectively even during a global health crisis,” it said.
In April, the BoC raised P6.3 million after an auction of luxury vehicles that were found to be undeclared.
Two vehicles, a used Mercedes SLK350 2001 and SLK55 2001 were sold to RMCE Metal Products Trading Corp., while a brand-new Mercedes Benz G500 was sold to Mopen Trading Corp.
Three other luxury vehicles were unsold, and will be auctioned at a later date.
In 2021, Customs collected P645.77 billion, 4.7% higher than its full-year target of P616.75 billion. This was also 20% higher than P537.69 billion in 2020, when the pandemic hampered supply chains. — Tobias Jared Tomas
A man wears a Philippine flag-themed mask, June 4, 2021. — PHILIPPINE STAR/ MICHAEL VARCAS
By Kyle Aristophere T. Atienza, Reporter
THE PHILIPPINES’ press freedom ranking further declined in 2022, amid continued cyberattacks on news websites and judicial harassment of journalists.
The country slipped nine spots to 147th out of 180 countries in the 2022 World Press Freedom Index by Paris-based Reporters Without Borders (RSF), which is said to be closely watched by some potential investors.
This is the Philippines’ lowest ranking in eight years since it ranked 149th in 2014.
In a report released on World Press Freedom Day on May 3, the global media watchdog noted that several news websites “that do not toe the line” of President Rodrigo R. Duterte, have been subjected to cyberattacks by trolls.
It also cited the Congress’ refusal to renew the franchise of ABS-CBN Corp., the country’s largest broadcast network, “leading to the closure of dozens of radio stations and TV channels.”
“The Philippines is due to emerge from Duterte’s six-year presidency in 2022, six years marked by countless verbal attacks coupled with judicial harassment targeting any media deemed overly critical of the government,” it said.
Mr. Duterte’s Acting Spokesperson Jose Ruperto Martin M. Andanar downplayed the report, saying that the Philippines is not yet included in the red list of countries with very bad press freedom situations.
“[It] has acknowledged that the Philippine media are extremely vibrant,” he said at a regular news conference on Wednesday.
The Reporters Without Borders used a new methodology for this year’s rankings, as it assessed press freedom in terms of political context, legal framework, economic context, sociocultural context and safety.
In terms of legal framework, Reporters Without Borders noted that Philippine laws do not protect the ability of journalists to work freely despite the freedom of the press guaranteed by the 1987 Constitution, which was crafted after a people power uprising toppled the late dictator Ferdinand E. Marcos.
It cited the case of journalist and Nobel Peace Prize winner Maria A. Ressa who is facing legal action brought by several government agencies.
“Defamation is still criminalized. The government uses laws relating to media ownership and taxation to harass critical media such as the Rappler website,” it said, referring to the website led by Ms. Ressa.
Maria Ela L. Atienza, a political science professor at the University of the Philippines, said the RSF report is “accurate.”
“The Duterte administration has not been very tolerant of media and did not respect media freedom. It has also not protected the rights of media workers,” she said.
Ms. Atienza said Mr. Duterte prefers to communicate with “friendly” media outlets, such as the Sonshine Media Network International (SMNI) of his spiritual adviser Apollo C. Quiboloy, who is wanted in the United States for sex trafficking chargers.
“The recent RSF ranking provides empirical basis for the existence of culture of impunity in the Philippines which certain government agencies either sweep under the rug or shamelessly deny,” Danilo Arao, who teaches journalism at the University of the Philippines, said in a Messenger chat.
The report also noted the end of supposed duopoly between ABS-CBN and rival GMA Network with the entry of another media company controlled by a firm of business tycoon and former Senate president Manuel B. Villar, who is allied with Mr. Duterte.
“Journalists working for this kind of media outlet have little editorial autonomy, self-censorship is the rule and respect for journalistic ethics is not guaranteed,” it said. “The internet and social media offer a space where many independent media can work freely but their economic viability is uncertain.”
In general, RSF said mainstream media ownership has reached greater levels of concentration than in the past, “a development accompanied by closer ties between media owning families and political barons at regional and national levels.”
It said radio and TV are the most popular media in the country, while print media continues to lose momentum with some regional newspapers struggling to continue their operations.
Still, RSF described the Philippine media as “extremely vibrant despite the government’s targeted attacks and constant harassment, since 2016, of journalists and media outlets that are too critical.”
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said global and local investors would likely consider the index in making investment decisions.
“Global investors become keener and more particular on the compliance of governments and companies that they invest into on environmental, social, and governance (ESG) standards, as also encouraged by global regulators,” he said in a Viber message.
“Stronger institutions, rule of law, basic rights and freedom, which are part of compliance with ESG standards, are important considerations when making investment decisions.”
John Paolo R. Rivera, an economist at the Asian Institute of Management, said in a Viber message that the index would allow investors to gauge the level of political stability in the country.
“The level of media freedom determines many forms of stability — whether social, political, economic,” Mr. Rivera said.
Among East Asia and Southeast Asian countries, Timor-Leste had the highest ranking at 17th place on the World Press Freedom index, followed by Taiwan (38th) and South Korea (43th). North Korea had the worst press freedom ranking overall at 180th spot. China ranked 175th on the index.
SAN MIGUEL Food and Beverage, Inc. (SMFB) announced on Wednesday that its first-quarter consolidated income increased by 1% to P12.7 billion, propelled by higher sales and better product pricing.
Excluding nonrecurring gains related to the Corporate Recovery and Tax Incentives for Enterprises Act, or CREATE law, the company’s net income for the quarter was up by 1% to P9.2 billion.
“We remain optimistic and steadfast in pursuing strategies that will drive long-term value for our shareholders. As the market continues to be dynamic, we will continue to manage the inflationary environment with the same level of discipline that carried us through the years,” SMFB President and Chief Executive Ramon S. Ang said in a statement on Wednesday.
Consolidated revenues grew 9% to P83.1 billion, driven by a combination of volume growth and better pricing across multiple categories in its beer, spirits, and food businesses.
“As with other consumer goods companies, SMFB was faced with rising input costs on raw materials and utilities, squeezing profits and muting the gains from volume growth compared to the same period last year,” the company said.
Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) were also up 1% to P15.7 billion.
Of its businesses, the food segment reported a 13% jump in consolidated revenues to P40.8 billion as demand for its brands remained robust.
However, its consolidated EBITDA for the first quarter of the year fell by 6.6% to P5.7 billion, while consolidated operating income dropped by 6.7% to P4.2 billion, impacted by inflationary pressures.
The animal nutrition and health and flour segments posted double-digit revenue growth while poultry and processed meats also recorded higher sales.
“Advertising and promotional campaigns, expansion of distribution networks, superior product quality, and better pricing all contributed to the growth” of the food business, SMFB said.
Meanwhile, the beer business reported a 3% rise in revenues to P29.7 billion on account of improved volumes in its international operations and price adjustments.
Its EBITDA and income from operations were flat in the first quarter at P8 billion and P6.8 billion, respectively.
SMFB said its beer business would continue to implement “cost management initiatives” to preserve profits.
For the rest of the year, the segment’s prospects have been boosted by the reopening of on-site channels after the lifting of pandemic restrictions, it added.
The spirits business reported that revenues jumped 11% to P12.6 billion due to “strong thematic campaigns, consumer promotions, a broadening distribution network, and efficiencies all supported growth.”
The EBITDA of the spirits business rose 32% to P2 billion, while income from operations increased 39% to P1.8 billion.
At the stock exchange, SMFB shares fell by P3.05 or 5% to P57.95 apiece. — Luisa Maria Jacinta C. Jocson
PETRON Corp. on Wednesday reported a net income of P3.6 billion in the first quarter, or more than double its P1.73-billion bottom line a year ago, as sales surged amid greater economic activity.
“Our efforts to increase our financial resilience, improve our efficiencies, and strengthen our brand equity have all yielded positive results. Two years into this pandemic, we now find ourselves in a position of renewed strength and confidence as we continue to navigate the industry with the same caution and prudence that helped us turn our financial performance around,” said Ramon S. Ang, Petron president and chief executive officer, in a media release.
The country’s largest oil refining and marketing company said first-quarter consolidated revenues jumped to P172.33 billion, or more than twice higher than year-ago’s P83.31 billion, as demand for its products recovered at a time when international prices were higher.
It said from January to March this year, Dubai crude averaged at $95.6 per barrel while due to geopolitical tension and supply concerns persisted with the continuing Russia-Ukraine conflict.
Petron, which is also in the Malaysian market, recorded sales volumes of 25.67 million barrels during the quarter, up 34% year on year, because of higher demand and eased mobility restrictions. The figure represents consolidated sales volumes from the Philippines, Malaysia, and its trading unit in Singapore.
The listed company has a refining capacity of 268,000 barrels per day and produces a full range of fuels and petrochemicals.
Its local retail segment registered a 7% rise while its commercial volumes, which include sales of its jet fuels and lubricant products, expanded nearly 50% with “increased economic activity and gradual resumption of local and international travels.”
“The oil firm saw significant volume growth in all its products. Total domestic sales jumped by about 43%, reflecting the overall improvement in local demand,” Petron said.
Petrochemical volumes increased by around 30%, which it attributed to the increased demand for resin used for personal protective equipment, or PPE, and online deliveries.
“Fueled by the demand growth and higher prices of petrochemicals, Petron resumed operations of its polypropylene plant in January 2022 after a two-year shutdown,” the company said.
During the period, Petron said it also strengthened its reach and broadened its offerings ahead of future demand.
“The company opened more stations during the first quarter in major areas as part of its larger network expansion program. Since 2021, Petron has adopted a new modular and panelized construction system for some of its new builds, creating a more efficient and greener way to construct service stations,” it said.
This year, its new power plant will be completed, allowing the company to efficiently power its refinery in Bataan.
“This would make the country’s lone refinery not only capable of supplying 40% of the national fuel demand but also self-sufficient in terms of its power requirement,” it said.
Mr. Ang said the company’s recent initiatives “are meant to ensure the growth and sustainability of our business in the years to come.”
“For us, the challenge ahead is not just to keep growing in terms of size but also to make a more significant impact in addressing environmental issues and building a better world for the next generations. We know there is more to do, and we are fully committed to seeing this vision through,” he said.
Petron operates around 40 terminals in the region. It has around 2,800 service stations where it sells gasoline and diesel. Its network is complemented by its Treats convenience stores.
On Wednesday, shares in the company climbed by 29 centavos or 8.98% to close at P3.52 each. — VVS
METRO Pacific Investments Corp. (MPIC) saw its attributable net income for the first quarter decline by 19% to P5.7 billion from the year-ago figure that included the sale of shares in two companies.
Its total comprehensive income grew by 8% to P7.5 billion in the first quarter, the company said in a statement.
In the same period last year, MPIC recorded gains as a result of the sale of shares in power generation company Global Business Power Corp. and Thai toll road operator Don Muang Tollway Public Co. Ltd.
MPIC saw contributions from its businesses grow by 14% to P4.3 billion: P2.5 billion from power, P1.2 billion from toll roads, and P600 million from water.
The company’s other businesses — including hospitals, light rail, fuel storage, and logistics — incurred an overall loss of P76 million.
It said its core net income for the quarter went up 23% to P3.1 billion after benefitting from “continued economic recovery and intensified election-related activities in the country.”
“Toll road traffic is now close to pre-pandemic levels, and power consumption has considerably increased as more industries ramp up operating capacity,” the company noted.
MPIC Chairman Manuel V. Pangilinan said: “Economic recovery continues to be this year’s story. It is MPIC’s story as well, but one that is inextricably linked to everyone else’s. Understanding this interconnectedness is a crucial lesson we have learned from the pandemic: that we need to come together to work out how we can progress from a crisis; that our development as a business is tied to the advancement of others.”
“Such progress is as significant as profit and is therefore linked to creating value for all. In other words, that our progress is yours as well,” he added.
He said the company’s focus over the near to medium term is to “continue to deliver on our commitments to support infrastructure development in the country.”
“We are also actively evaluating opportunities in multiple sectors that will potentially enable further economic development such as logistics, agriculture, real estate, and tourism.”
MPIC shares closed unchanged at P3.82 apiece on Wednesday.
MPIC is one of three key Philippine units of First Pacific, the others being Philex Mining Corp. and PLDT, Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin
CENTURY Pacific Food, Inc. reported on Wednesday that its earnings in the first quarter rose by 10% to P1.4 billion, driven by the performance of its branded segment.
“The first quarter of 2022 has received more than its fair share of headwinds, yet, concurrently, we are feeling tailwinds coming from the Philippine economic reopening,” Century Pacific Chief Finance Officer Richard S. Manapat said in a statement.
“Consumers are feeling the impact of rising commodity prices but, compared to the height of the pandemic, have more disposable income. They continue to gravitate toward essential goods and value for money brands, underpinning the demand for Century products,” he added.
Consolidated net revenues likewise increased by 10% to P14.7 billion from the similar period the year before.
Of its businesses, the branded segment contributed 82% to the company’s topline. The segment is composed of marine, meat, milk and other emerging businesses.
The company reported a year-on-year growth of 17% as domestic demand for affordable and shelf-stable consumer goods remained resilient for the quarter.
Meanwhile, the company’s tuna and coconut exports business contracted by 13% due to rising freight rates from Asia to the West and limited container availability.
Mr. Manapat said he was grateful for the continued resilience shown by the company.
“We have seen two consecutive years of extraordinary performance and kickstarted 2022 with healthy business results. This puts us in a good position to power through what we expect to be a volatile year, especially with respect to rising input prices,” he said.
He added that the company is intent on pursuing “long-term growth initiatives” by continuously boosting its core marine and meat businesses and investing in the growth of its emerging businesses, citing newly launched “innovations.”
In 2019, the company launched its packaged culinary coconut cream brand Coco Mama, which has been posting “strong results” since then.
In 2020, it entered the nascent plant-based meat alternatives category with the launch of its unMEAT brand. It also entered the pet food market last year with its brand Goodest.
“We see much uncertainty lying ahead but in times like these, we believe it is crucial for us to remain focused on running a sustainable business for our stakeholders. To us, that means keeping to our mission of providing affordable nutrition to our consumers, staying true to our strategic priorities, and proactively managing risks to deliver decent business results in parallel,” Mr. Manapat said.
Century Pacific is primarily engaged in manufacturing, marketing, and distributing processed marine, meat, milk, coconut, plant-based, and pet products. Its brands include Century Tuna, Argentina, 555, Angel, and Birch Tree.
Century Pacific stocks dropped by 70 centavos or 3.06% to close at P22.20 each at the stock exchange on Wednesday. — Luisa Maria Jacinta C. Jocson
