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NG budget deficit narrows in May

PHILIPPINE STAR/ MICHAEL VARCAS

THE NATIONAL Government’s (NG) budget deficit narrowed in May as revenues grew by double digits and spending contracted during the height of the election period, the Bureau of the Treasury (BTr) reported on Thursday.

In a statement, the BTr said the budget gap fell by 26.72% to P146.8 billion in May, from P200.3 billion in the same period last year.

Month on month, the May fiscal balance swung to a deficit from April’s P4.9-billion surplus.

National government fiscal performanceTotal revenues rose by 18.91% to P304.9 billion in May, from P256.4 billion in the same period last year. This was driven by a 21.8% increase in tax revenues to P285.6 billion, but this was offset by a 12.24% drop in nontax revenues to P19.4 billion.

Tax revenues were fueled by double-digit growth in collections by the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC). BIR collected P216.6 billion, up by 17.91% year on year, while the BoC collected P66.3 billion, up by 36.35%.

The BTr’s revenues dropped by 28.22% to P8.9 billion due to lower dividend remittances, while collections from other offices went up by 8.35% to P10.4 billion.

Security Bank Corp. Chief Economist Robert Dan J. Roces attributed the higher revenues to increased economic activity as restrictions remained at the most lenient level.

“Attribution may be through increased revenue with looser alert levels aiding the economic reopening, allowing the government to garner better tax uptake… There’s also the weaker peso’s factor channeling through import taxes,” he said via e-mail.

The peso closed at P54.70 against the US dollar on Thursday, the lowest since Nov. 21, 2005.

Nicholas Antonio T. Mapa, senior economist at the Manila branch of Dutch bank ING Bank N.V., said Customs collections may have gotten a boost from the more expensive fuel imports.

At the same time, government expenditures contracted by 1.1% year on year to P451.7 billion in May, as an election ban on public works projects was in place until May 8 or a day before the May 9 national elections.

Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco said the contraction in spending was expected as this is usually seen in election months.

“It should serve as a warning shot for the Q2 GDP report, which we think will be tarnished quite significantly by the natural pause in government spending during periods of political transition,” Mr. Chanco said.

Primary expenditures, or spending net of interest payments, slipped by 2.32% to P417.9 billion in May.

Interest payments for May increased by 16.93% to P33.8 billion.

Meanwhile, the year-to-date budget deficit declined by 18.99% to P458.7 billion, as revenue growth outpaced spending.

Total revenues jumped by 15.46% to P1.43 trillion in the first five months of 2022, while expenditures rose by 4.69% to P1.9 trillion.

The bulk of revenues came from tax collections, which grew by 14.15% to P1.28 trillion. BIR collections rose by 9.92% to P959 billion, while BoC collections went up by 28.42% to P320.5 billion.

Nontax revenues, on the other hand, increased by 28.32% to P147.6 billion, thanks to a 37% rise in BTr revenues to P83.4 billion.

“Certainly, the punchy revenue numbers year to date are an encouraging sign of the economy’s recovery, though I’d be wary of overly praising any substantial rise in indirect taxes in the current inflationary environment,” said Mr. Chanco.

Inflation was 5.4% in May, the highest in three and a half years, exceeding the Bangko Sentral ng Pilipinas’ 2-4% target range.

Primary expenditures stood at P1.67 trillion in the five months to May, up 2.64% year on year. Interest payments jumped by 23.43% to P220 billion.

“For the period January-May, interest payments accounted for 15.34% of revenues and 11.63% of expenditures, up from last year’s 14.35% and 9.86%, respectively,” the BTr said.

The government expects the budget deficit to hit P1.65 trillion this year, slightly lower than the actual deficit of P1.67 trillion in 2021.

“Going forward, the incoming administration must continue to push increased revenue collections to bring the deficit within the program of P1.6 trillion for the year,” said Mr. Mapa. “Improved revenue collection will be crucial all the more given [President-elect Marcos’] directive to spend and invigorate the economy.”

As of the first quarter, the budget deficit as a ratio of the gross domestic product (GDP) stood at 6.4%.

The government aims to reduce the deficit to 7.6% of GDP this year, and further to 6.1% in 2023, 5.1% in 2024 and 4.1% in 2025. — Diego Gabriel C. Robles

Ex-PAL president tapped to head Transport dep’t

BW FILE PHOTO/ LSDAVALJR

FORMER Philippine Airlines (PAL) President and Chief Operating Officer Jaime J. Bautista has been tapped by President-elect Ferdinand R. Marcos, Jr. to head the Department of Transportation (DoTr).

In a statement, Mr. Marcos said he named Mr. Bautista as DoTr secretary-designate and Cesar B. Chavez as DoTr undersecretary for railways.

Mr. Bautista worked at PAL for more than 25 years, and was president from 2004 to 2012, and from 2014 to 2019. At the flag carrier, he served various posts such as vice-president for finance and chief finance officer.

On the other hand, Mr. Chavez will return to the DoTr, where he was appointed as undersecretary by President Rodrigo R. Duterte in 2017. He left the agency after issues involving the Metro Rail Transit Line 3 (MRT 3). 

Mr. Chavez was “instrumental in securing” the National Economic and Development Authority’s (NEDA) approval for the Metro Manila subway and other rail projects, according to the Marcos camp. He also served as deputy administrator of the Light Rail Transit Authority (LRTA).

Meanwhile, lawyer and former journalist Cheloy E. Garafil was chosen by Mr. Marcos to be the next chairman of the Land Transportation Franchising and Regulatory Board (LTFRB).

Ms. Garafil currently serves as service director at the House of Representatives Committee on Rules, and was formerly a prosecutor for the Department of Justice and State Solicitor for the Office of the Solicitor General.

Mr. Marcos also tapped businessman Christopher S. Pastrana to serve as general manager of the Philippine Ports Authority (PPA).

“(Mr.) Pastrana, a successful businessman in the transportation field, brings with him decades of experience in various aspects of aviation, logistics, and public maritime transport,” it said.

Mr. Pastrana currently serves as president and chief executive officer of the supply and logistics conglomerate CAPP Industries, Inc. He also chairs the Archipelago Philippines Ferries Corp. (APFC), which operates ferries under the brand name FastCat.

Experts have said that Mr. Duterte’s successor will have a hard time addressing the problems confronting the transport sector, which has been hit by supply and demand shocks worsened by rising fuel prices.

Senator Mary Grace Natividad Poe-Llamanzares, who chairs the Senate Committee on Public Services, said “much is expected” from the next Transport chief, who will have to address mass transportation problems and unfinished infrastructure projects.

The Move as One Coalition said the public transport sector is now in a “deadly spiral” and is now “collapsing.”

Meanwhile, Mr. Marcos has chosen more people from the Duterte government to serve under his administration.

In a separate statement, the Marcos team said outgoing Labor Secretary Silvestre H. Bello III will chair the Manila Economic and Cultural Office, which is the Philippines’ representative office in Taiwan.

Mr. Bello also served as Cabinet secretary under the administration of former President Gloria Macapagal-Arroyo.

Mr. Duterte’s former Cabinet chief, Karlo Alexei B. Nograles, will be the chair the Civil Service Commission, the Marcos team said.

Mr. Nograles was among the Duterte ad-interim appointees that were bypassed by the Commission on Appointments due to lack of quorum. — Kyle Aristophere T. Atienza

Balisacan seeks better coordination with Congress on priority measures

PHILSTAR

By Diego Gabriel C. Robles

THE MARCOS administration’s economic team wants to have better coordination with the incoming 19th Congress on priority bills and the 2023 national budget, Socioeconomic Planning Secretary-designate Arsenio M. Balisacan said.

“We started sitting down with the leaders of the House to ensure that what we are putting on the table as priorities to address these current issues will be also supported by Congress by way of legislation,” said Mr. Balisacan in a June 16 roundtable with BusinessWorld editors.

“Dapat magkatugma [ang] ginagawa ng Executive branch at tsaka nung Legislative branch. (The priorities of the Executive branch and the Legislative branch should match).”

Mr. Balisacan, who also served as National Economic and Development Authority (NEDA) director-general under the Aquino administration, said there have been many instances when the Congress-approved national budget was “very different” from the original proposal.

“As a result, you lose coherence, you lose the prioritization, and we would want to minimize that by ensuring that [there] is a line directly connecting the Executive branch and Congress when it comes to legislation of our economic agenda,” he said.

Mr. Balisacan is considering having more frequent meetings with legislators through the Legislative-Executive Development Advisory Council (LEDAC).

The LEDAC is an avenue for high-level policy discussions between members of Congress and the Executive branch.

“I still have to see the appetite of our [incoming] President because it is the President that sits down [and] NEDA is [just] the secretariat,” he said.

However, there are no specific priority measures agreed upon by the economic team for now.

The Philippine Chamber of Commerce and Industry (PCCI) earlier this week said the new administration must focus on key legislation such as the Real Property Valuation and Assessment Reform Act and the Passive Income and Financial Intermediary Taxation Act, which are the third and fourth packages of the Duterte administration’s tax reform program.

The PCCI also cited the proposed Capital Markets Development Act, Open Access in Data Transmission Act, a Better Internet Act, and amendments to the Comprehensive Agrarian Reform Law.

According to Mr. Balisacan, the preparations for the 2023 national budget began in January and the document is now in its “final form.”

Mr. Balisacan said the looming food and power crisis makes it crucial to review the priorities under the proposed 2023 budget.

“We’ll have a window to revisit that given the changes in local and global conditions… I would like to see ongoing projects to the extent that they are found to be economically and socially viable must continue. We must not resort to the old practice of stopping a project even if it’s good because it was initiated by the previous administration,” he said.

The Development Budget Coordination Committee (DBCC) last month approved a record P5.268-trillion cap on the national budget for 2023, which represents 22.1% of the gross domestic product (GDP). Next year’s budget is 4.9% higher than the P5.02-trillion budget for this year.

BusinessWorld editors’ roundtable with Mr. Balisacan will be aired on BusinessWorld’s Facebook page (https://www.facebook.com/BWorldPH ) at 11 a.m., June 27 (Monday).

Hwang In Youp on skincare and meeting fans in Manila

KOREAN actor Hwang In Youp

KOREAN actor Hwang In Youp looked dapper in his grey suit paired with white sneakers. It was the actor’s first time back in the Philippines since his high school and college days in Davao City.

Cosmetics brand BYS Philippines brought the Korean actor over for the BYS Fun Meet in Manila at the New Frontier Theater in Araneta City on June 19.

“I did live in Davao for four years. It’s been about 10 years since I saw my friends, but we still keep in touch,” Mr. Hwang said in a press conference at EDSA Shangri-la Hotel in the morning of the event.

Mr. Hwang was a model before pursuing a career in entertainment. His debut role was in the web drama W.H.Y. (2018). He then took on television dramas including Freshman (2019), The Tale of Nokdu (2019), and 18 Again (2020). He gained further recognition in True Beauty (2020), and currently stars in Netflix’s Sound of Magic.

ON SELF-CARE
At the press conference, Mr. Hwang revealed his skincare routine: using the complete line of Skin by BYS to get the full glowing effect. He said he also splashes his face with cold water at the end of his shower.

“As a young child, whenever we would step out, my parents would always put sunscreen on me and that has become a habit,” Mr. Hwang said.

“If I’m in an outdoor shoot, and I was under the sun a lot, I usually [do a] hydrating mask at night,” he said.

“And the most important thing is to keep a positive attitude.”

In September 2021, BYS Cosmetics signed Mr. Hwang to join its roster of brand ambassadors. He was the face of its #UncoverTrueBeauty campaign that coincided with the launch of the Skin by BYS Minis — the travel-sized edition of the brand’s skincare line.

As the brand name BYS stands for “Be Yourself,” Mr. Hwang stated that his philosophy in life relates to the brand’s.

“I think as you live life, you get to a point where you become critical of yourself and maybe even hate yourself,” he said. “I think it’s important to switch that to loving yourself, because it is only in loving yourself that you are able to go to the next step which is loving others.”

A NIGHT WITH FANS
During the fan meet, the BYS brand ambassador answered questions and played several games on stage with audience members. He performed the song “It Starts Today,” which is in the soundtrack of the TV show True Beauty where he starred as Han Seo Jun. He also handed out signed posters to 100 lucky fans.

As for his future projects as an actor, Mr. Hwang wants to explore genres he has not done yet.

“It hasn’t been that long since my debut. So, now the focus is not on what kind of role I would like to portray, but perhaps what genre I would like to explore,” he said. “Even before that, it was really about me wanting to show you my skills as a talented actor.”

Mr. Hwang was thankful to have been received well by his fans during his Manila visit. “To be receiving this kind of love is fascinating and I am grateful for it,” he said.    Michelle Anne P. Soliman

Power users in contiguous areas set to enjoy lower rates

BW FILE PHOTO

ENTITIES within a contiguous area whose electricity demand peaked at a total monthly average of at least 500 kilowatts (kW) for the past year can group together and enjoy lower power rates starting on Dec. 26, 2022, when retail aggregation rules take effect.

Agnes VST Devanadera, chairperson and chief executive officer of the Energy Regulatory Commission (ERC), said in a statement on Thursday that the government’s program for retail electricity aggregation is to have its pilot run on June 24.

As of April 2022, contestable customers — or those whose monthly average consumption reached the required threshold — benefited from a lower weighted average power generation rate of P4.05 per kilowatt-hour, which is lower than what residential customers in Metro Manila are set to pay this month.

“[W]e hope that the electricity consumers will be more enlightened about the benefits of retail aggregation which ultimately is for the consumers to have the power to choose from among the electricity suppliers that offer better rates and better services,” Ms. Devanadera said to announce the pilot implementation.

The initial run is a partnership between the University of the Philippines’ Diliman campus and the country’s largest electricity distributor Manila Electric Co. They are set to sign a memorandum of understanding for the initiative.

Their partnership is the latest development in advancing the rules on retail competition and open access (RCOA), which aims to lower power rates as retail electric suppliers (RES) sign up contestable customers by offering competitive rates.

Rates offered by a RES to contestable customers are not subject to government regulation, thus the contracting parties can arrive at agreed terms.

The ERC said a total of 1,897 contestable customers with a total demand of 3,924.53 megawatts are now enjoying lower rates in the retail market.

The rules for retail aggregation seek to establish standardized procedures governing the collective electricity requirements of end users in a so-called competitive retail electricity market (CREM). They also prescribe and clarify the requirements, conditions, eligibility, qualifications, and disqualifications of participants in the aggregation program.

Ms. Devanadera said the program is “another means of empowering consumers to exercise their freedom of choice.”

Under the aggregation program, two or more electricity end users or all end users within a contiguous area can join together and be treated as a single contestable customer.

The aggregation of end users may be allowed within the geographical boundaries of any of the following: subdivisions, villages, business districts, special economic zones, condominium buildings, commercial establishments such as malls, and mixed-used development complexes.

It is also applicable to other geographical areas, where similarly situated end users are located, in which the supply of electricity can be measured through metering devices.

Persons or entities engaged in consolidating the power requirements of end users for purchasing and reselling electricity on a group basis are required to secure a RES license. — Victor V. Saulon

Sotto set to become first-ever Filipino homegrown NBA draftee

KAI SOTTO — ADELAIDE 36ERS

By John Bryan Ulanday

IT’S the moment of truth for local pride Kai Sotto as he attempts to etch history for the Philippines in the highly-anticipated 2022 National Basketball Association (NBA) Rookie Draft at the Barclays Center in Brooklyn, New York.

With the entire Philippine archipelago on his back, Mr. Sotto is hoping to get his name called at the podium to become the first-ever Filipino homegrown draftee in the NBA.

Proceedings start at 8 a.m. (Manila time) with Auburn’s Jabari Smith, Duke’s Paolo Banchero and Gonzaga’s Chet Holmgren as the expected top selections.

Mr. Sotto, the 7-foot-3, threw his hat into the NBA draft sweepstakes after stints with Adelaide 36ers in the Australia National Basketball League (NBL) and Ignite in the NBA G League.

He also showed his wares for both the Gilas Pilipinas youth and men’s teams in different international tournaments with hopes of landing in the NBA as his ultimate destination.

Reaching that goal, however, will not be a walk in the park as the 20-year-old
Filipino is not included in multiple mock drafts by international sports outlets ahead of the draft.

Only Sports Illustrated, which listed him at No. 49 last month, has Mr. Sotto on the radar for the draft that has two rounds for 30 teams.

But Mr. Sotto is unfazed by the odds after solid workouts with the Orlando Magic, New York Knicks, Atlanta Hawks, Cleveland Cavaliers, Chicago Bulls, Sacramento Kings and Indiana Pacers.

“Now, I’m getting closer to my dream and our dream. I’m really thankful for their (Filipino fans) support and those I don’t take for granted,” said Mr. Sotto in the interview posted by the Pacers.

“If I make it to the NBA, I’ll be the first Filipino and my dream is to help others get here too,” he added, pointing to his versatility, height, perimeter touch, shot blocking and passing ability as his best assets.

Should Mr. Sotto realize his dream, he would join Filipino-American stalwarts Jordan Clarkson of the Utah Jazz and Jalen Green of the Houston Rockets as the Philippine representatives in the NBA.

Other Fil-American hopefuls in this year’s class are Rutgers’ Ron Harper, Jr. and Kansas’ Remy Martin.

Elvis lives again with acclaimed portrayal by Austin Butler

A SCENE from the film Elvis

LOS ANGELES — Although critics seem to either love or hate film director Baz Luhrmann’s biopic Elvis, they all agree on one thing: Austin Butler excels in his portrayal of the “King of Rock ‘n’ Roll.”

Having started his career playing background characters in Hollywood productions, Mr. Butler went on to get parts in teen shows Hannah Montana, iCarly, and Switched at Birth, before landing a small part in Once Upon a Time in Hollywood.

Now, he’s breaking out the hip-swiveling moves and the verbal cadence of Elvis Presley in Mr. Luhrmann’s musical film about the singer and actor’s trials and tribulations.

“I just thought if I couldn’t find someone to play Elvis, I wouldn’t do it,” Mr. Luhrmann told Reuters.

“(Butler) sent this video in, which was not an audition, it was him breaking down because he lost his mom the same (age) as Elvis did and he had a nightmare and he goes downstairs and puts the iPhone on and he sings ‘Unchained Melody’… his agent says ‘send that to Baz’ and so that begins the process but once he came in, he was sort of down Elvis street when I met him.”

However, Mr. Butler says he wasn’t as far “down Elvis street” as he would have liked when he started filming his first performance, a rendition of Presley’s 1968 televised concert after a year and a half of preparation.

“I felt so much responsibility and what comes with that is an incredible amount of terror. I was so scared,” Mr. Butler said.

“I got on stage and the music started… I looked down and saw the leather on my arm and the rings on my fingers and it felt like I was looking out of his eyes. It was the most remarkable out-of-body experience.”

After three years of embodying Elvis since his 2019 casting, Mr. Butler’s journey wrapped up at the film’s world premiere at the Cannes Film Festival in May.

“I hadn’t seen the film and it was part way through act one and I just took this huge sigh and I just felt this weight off of me,” he said.

Elvis began its global cinema rollout on Wednesday. — Reuters

Filinvest Land raises P11.9B in oversubscribed bonds

PROPERTY developer Filinvest Land, Inc. (FLI) announced on Thursday that it successfully raised P11.9 billion, which will be used to partially finance its capital expenditure program and refinance maturing debt.

The amount was raised through the issuance of three-year and five-year peso fixed-rate bonds, the company said in a statement to the stock exchange.

The bonds — almost 10 times oversubscribed over the base amount of P8 billion — were listed in the Philippine Dealing & Exchange Corp. on June 23, it added.

Proceeds will add to the company’s internally generated funds in support of its continued expansion in affordable and middle-income residential development.

The latest bond issuance, according to the company, will be the third and final tranche out of its P30-billion bonds registered in 2020 under the shelf-registration program of the Securities and Exchange Commission.

FLI President Tristan D. Las Marias said the company has a “strong” line up of more than P30-billion new residential projects and expansions.

“We target to launch in new areas like Bataan, Sta. Maria in Bulacan, Naga in Camarines Sur, and in General Santos, South Cotabato,” he said.

He noted that housing continues to grow at a “stable rate” despite the public health crisis.

“We expect this to further grow as we transition out of the pandemic.”

The company has introduced new recurring business products such as co-living, co-working, and logistics and innovation parks with ready-built warehouses.

The first two buildings of its first co-living development — “The Crib” in Clark Mimosa — are expected to be “operational very soon,” said Chief Executive Officer Josephine Gotianun Yap.

“There are also two more Crib buildings under construction. On the other hand, we envision our Innovation Park in New Clark City in Tarlac and Filinvest Technopark in Calamba, Laguna to be the preferred location of logistics, data centers, e-commerce, light manufacturing, and storage business operators,” she also said.

“This will add to our portfolio of recurring income projects which we aim to infuse into Filinvest REIT at the right time.”

Filinvest Land shares closed 2.3% lower at P0.85 apiece on Thursday. — Arjay L. Balinbin

Veteran Galedo stamps his class in individual time trial

THIRTY-SEVEN-year-old Mark John Lexer Galedo — PHILIPPINE STAR FILE PHOTO

AT 37 years old, Mark John Lexer Galedo has remained the fastest Filipino road biker in the land.

Faced against younger, hungrier rivals, the 2013 Southeast Southeast Asian (SEA) Games gold medalist didn’t miss a beat as he stamped his class in the men’s individual time trial of the PhilCycling National Championships for Road in Tagaytay City.

The 37-year-old Mr. Galedo, one of the rare few who has won the country’s two major races in the LBC Ronda Pilipinas and the Air21 Le Tour de Filipinas, timed in 52 minutes and 43.10 seconds in the 30-kilometer race from Nasugbu, Batangas to Praying Hands Monument in Tagaytay in capturing the gold.

The 7-Eleven Roadbike rider blew away the field that included 2022 Ronda runner-up Ronald Oranza and John Mark Camingao of Standard Insurance-Navy, who checked in 31 seconds and 2.22 minutes behind, respectively.

“I prepared hard because these are the national championships. I still feel them in my legs and I’ll go on riding,” said the ecstatic Mr. Galedo.

Fellow SEA Games gold winner Jermyn Prado continued to underscore her domination of women’s cycling as she topped the ITT in 39:14.20 for her second triumph after her conquest of the criterium the day before.

Other winners were Nichol Pareja (men’s Under-23), Phoebe Salazar (women’s U23), Andrew Lumanlan (juniors), Samstill Mamites (youth), Raven Joy Valdez (juniors), and Kym Syrell Bonilla (youth).

The event is being co-presented by Standard Insurance, MVP Sports Foundation and Smart and backed by Chooks-to-Go, San Miguel Corp., Petron, Le Tour de Filipinas-Air21-One LGC, Tagaytay City, Go For Gold, Cavite’s First District, Batangas First District, Batangas and the Philippine National Police. — Joey Villar

Peso sinks to fresh 16.5-year low as BSP hikes rates by just 25 bps

BW FILE PHOTO

THE PHILIPPINE PESO sank to another over 16-year low against the dollar on Thursday as the central bank raised benchmark rates by just 25 basis points (bps) despite market expectations of a bigger hike following the US Federal Reserve’s aggressive move last week.

The local unit closed at P54.70 versus the dollar on Thursday, shedding 23 centavos from its P54.47 finish on Wednesday, data from the Bankers Association of the Philippines showed.

Thursday’s close is a fresh 16-1/2-year low as it is the peso’s worst finish since Nov. 21. 2005’s P54.74.

The peso opened Thursday’s session at P54.40 against the dollar, better than its Wednesday finish. Its intraday best was at P54.35, while its closing level was its worst showing for the day.

Dollars exchanged fell to $1.061 billion on Thursday from $1.348 billion.

The peso weakened further as the Bangko Sentral ng Pilipinas (BSP) hiked rates by just 25 bps on Thursday and signaled a continued “gradual” pace of tightening, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Mr. Ricafort noted that the BSP’s dovish tone comes even as the Fed is expected to fire off “bigger and faster” increases in the coming months.

“Market sentiment was also weighed down by the acknowledgment of Fed Chair Powell of recession risks due to more aggressive Fed rate hikes/monetary policy and signaling that soft landing would be very challenging,” he added.

The BSP’s decision on Thursday came despite market expectations of a 50-bp move following the Fed’s hawkish turn. It followed an increase of the same magnitude at its May 19 meeting that kicked off the BSP’s tightening cycle following the cumulative 200 bps in cuts made in 2020 to support the economy amid the coronavirus pandemic.

Headline inflation reached 5.4% in May, faster than the BSP’s 2-4% target for the year. Year to date, inflation has averaged 4.1%.

The BSP on Thursday also raised its inflation forecasts. For 2022, it now sees inflation averaging 5% from 4.6% previously, which, if realized, would be the fastest since the 5.2% print logged in 2018. The 2023 forecast was also hiked to 4.2% from 3.9% previously.

The Fed chief told the US Senate Banking Committee on Wednesday that the US central bank is committed to fighting inflation and is not trying to provoke a recession.

The Fed last week raised rates by 75 bps — its biggest hike since 1994 — to a range of 1.5% to 1.75%, and signaled rates would rise to 3.4% by the end of this year.

A trader said the peso may weaken further as Mr. Powell’s testimony to the US Congress continues overnight.

For Friday, Mr. Ricafort sees the local unit moving within P54.60 to P54.80 per dollar, while the trader gave a weaker forecast range of P54.65 and P54.85.

WEAK PESO A RESULT OF MONETARY TIGHTENING
As of Thursday’s close, the peso has declined by P3.7 or 7.26% versus the dollar from its Dec. 31, 2021 finish of P51. For this month so far, the peso has dropped by P2.33 or 4.45% from the May 31 close of P52.37.

BSP officials on Thursday said the peso’s recent decline versus the dollar is due to the start of monetary policy normalization by the Fed and other central banks.

“We can see that the recent weakening of peso along with other countries in the region is consistent with more aggressive monetary policy normalization in advanced economies, particularly that of the US Fed,” BSP Deputy Governor Francisco G. Dakila said at a briefing after the Monetary Board’s meeting on Thursday.

Asked if the peso would weaken further and hit the P55-per-dollar mark, Mr. Dakila said the currency remains market-driven and its movement will depend on internal and external factors.

“The thing is, there are forces that tend to weaken, not just the peso, but also other currencies in the region,” he said. “There are other factors that provide support to the currency, and these are structural sources of foreign exchange, including our very resilient remittances, also our business process outsourcing sector,” he said.

He noted that the BSP can enter the foreign-exchange market at any time to ensure the peso’s movement will be “orderly”.

BSP Department of Economic Research Managing Director Zeno Ronald R. Abenoja added that foreign direct investments can also help prop up the local unit against the greenback. — BVR with a report from TJT

Festival screening of two films axed under HK censorship law

Taiwanese film, Islander — PHOTO FROM KFF.TW

HONG KONG — Two films have been dropped from an international film festival in Hong Kong (HK) after failing to get approval from authorities, in what one director said reflected increased censorship after a new censorship law came into effect last year.

The Fresh Wave International Short Film Festival said in a statement on Tuesday that a Taiwanese film, Islander, had failed to get an approval certificate from the city’s film censorship authority and it would not be screened.

The festival, which opened on June 17 and runs for a month, had earlier said a Hong Kong film would be dropped.

Hong Kong’s Office for Film, Newspaper and Article Administration said in an e-mail to Reuters that it “would not comment on the application or result of individual films.”

Hong Kong passed a censorship law last year to bar films that “endorse, support, glorify, encourage and incite activities that might endanger national security.”

The censorship law followed a national security law that Beijing imposed on the former British colony in 2020 that sets out punishment for anything deemed subversion, secession, colluding with foreign forces and terrorism, ending pro-democracy protests that rocked the city for months.

Islander tells the story of a man who goes to visit his only son, a detained political prisoner charged with secession and subversion during Taiwan’s authoritarian era before it became a fully-fledged democracy.

The film’s Taiwanese director, Wu Zi-en, criticized the decision not to allow its screening.

“I think, no matter how the film censorship authority responds afterward, it is just a lie if they said it’s not related to the content,” Mr. Wu said.

A Hong Kong film, Time, and Time Again, about a detective haunted by a case of a missing girl, had also failed to get a green light from film censors, the film’s director said.

The name of the missing girl in the film, Christy, is the same as that of a girl who went missing during pro-democracy protests in 2019 and was later found dead in the sea. The names are slightly different in Chinese.

“No one knows whether it’s related to the name Christy,” director Asgard Wong told Reuters by telephone from Germany, referring to the failure to get approval.

“It’s just everyone’s guess.”

Wong and other film-makers were wary about prospects for cinema in a city that has for decades been one of Asia’s movie-making hubs.

“There will be more censorship in terms of production … Apart from the film censorship authority, we also need to second guess how others, including the agencies, venues, and funding sources think,” Wong said.

Several other directors read out the script of Time, and Time Again at the festival, saying they wanted to find a way to present it to audiences.

“The vague approval conditions limit the imagination and development of future local movie productions,” a group of 11 directors said in a statement. — Reuters

Bain & Co. opens first physical office in Philippines 

GLOBAL management consulting firm Bain & Co. announced the opening of its first physical office in the Philippines as part of its efforts to bring its services closer to clients.

“We have at the moment, about 20 people on the ground, and looking to add more to that. So, that’s quite a number of people already. We are here in BGC (Bonifacio Global City),” said Patricia Buenaventura Nichol, Bain & Co. Philippines office head, said in a media briefing in Taguig City on Thursday.

She said that creating a presence in the country will help Bain & Co. improve its relationships with clients.

“Establishing a strong local presence with a senior Filipino leadership team will allow us to further increase the depth of our partnerships with our clients, attract and develop the best local talent, and enhance the capabilities in our communities. It is our intent to bring in local, regional, and global experts in key sectors to drive change,” Ms. Nichol said.

She said the firm is looking forward “to collaborating and supporting our business leaders and changemakers.”

The Manila office of Bain & Co. is its fifth location in Southeast Asia. It will operate in combination with its offices in Bangkok, Thailand; Jakarta, Indonesia; Kuala Lumpur, Malaysia; and Singapore.

Bain & Co. Philippines Chairman Jean-Pierre Felenbok said that the expansion was planned some time ago, but was just stifled by the coronavirus disease 2019 (COVID-19) pandemic.

“We were actually ready to go just before the pandemic hit [but] it was not a good idea to start moving people around the systems. We’re very glad now that this is behind us, and that we can actually bring this plan forward,” Mr. Felenbok said.

Mr. Felenbok said that the Philippines offers great potential for the company, adding that the local team will work with the firm’s global network to serve their clients.

He said the network will deploy “top international expertise to serve the increasing number of priority client relationships we have locally.”

“If we really want to give the type of service that we ambition to give to our clients, we need to have a combination of a local team close to the clients and to the community which understands how things work locally but coupled very tightly with our global experts. That is the best model to deliver the results,” he added.

Meanwhile, Bain & Co. Managing Partner for Southeast Asia Wade Cruse said that the Philippines is a significant market in the Southeast Asian region.

“On the back of our double-digit growth, Bain & Co. is excited to establish a physical footprint in the Philippines. The Philippines has emerged as a significant market in Southeast Asia, with high gross domestic product growth rates, a large and growing consumer market, and underpinned by a strong talent pool,” he said.

“Beyond the underlying fundamentals, we have also seen increased investment activity through the COVID-19 pandemic, attracted by the pace of consumer change, increased digitalization, and a dynamic entrepreneurial environment,” he added. — Revin Mikhael D. Ochave