Another year of verified 5-Star excellence for Solaire

April 28, 2022 | 2:30 pm

Lobby-OL — Photo shows Solaire Resort’s Sky Tower Lobby.

Solaire Resort soars even higher with another Forbes Travel Guide 5-star Award for its Sky Tower. The 2022 distinction is now included in the property’s record of international titles, making this its 6th consecutive Forbes Travel Guide 5-Star rating since first receiving it in 2017, attesting to its unwavering commitment to the highest standards of service.

“Solaire’s achievements are the result of our team’s creativity, dedication, and determination to continue as a leader in the industry. Our 6th consecutive Forbes Travel Guide 5 Star Award is a continuation of our growing list of accomplishments — this award is another mark that emphasizes Solaire’s leading position as a globally verified luxury travel destination,“ says Thomas Arasi, Bloomberry Resorts Corporation and Solaire’s President and Chief Operating Officer.

Staying ahead and remaining at the top of the integrated resort industry, Solaire’s strength lies in its incredible facilities and unmatched attention to service-details, well-integrated to showcase the distinct Filipino characteristics that sets it apart from its contemporaries.

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The 17-storey multi-awardee Sky Tower is pure luxury. Its 312 rooms and suites are furnished with premium amenities and designed with top-class interiors and furnishings that make every stay indulgently relaxing. Each suite is generous in space with a floor area between 65 to 395 square meters, well above the usual hotel room size allocations found in the metro. Some other guest facilities are an outdoor swimming pool with cabañas and Jacuzzi where you can watch the glowing Manila Bay sunset, a wellness spa, a salon, and a fitness center.

World-class gastronomy is also abundant in Solaire’s signature restaurants. For Chinese cuisine, Red Lantern offers various specialties from the different regions of China, while authentic Japanese flavors are available at Yakumi where select ingredients are flown in from Japan’s famous Toyosu market. Fine Italian creations find their way to Finestra and are complemented by a vast selection of wines and perfectly marbled steaks. Western favorites from burgers, pastas, and steaks are the highlight at Waterside, and tastes from around the globe are in one space at Fresh with stations filled with food items that will satisfy all cravings in one sitting.

A dream shopping destination, The Shoppes at Solaire offers luxury designer fashion with the mark of true craftsmanship that’s lasted through the times. Find the boutiques of French fashion houses Louis Vuitton, Dior, and Kenzo, as well as a space dedicated to Italian brand Fendi. Found only at The Shoppes are Versace and Balmain.

The brand’s impressive achievements in its nine years of operation are a product of a trailblazing vision fueled by incredible grit and passion to put the first and only Filipino luxury integrated resort on the map – elements that not everyone can easily succeed in harnessing individually, more so all together. What makes it even more impressive is that these qualities are instilled and weaved into Solaire’s brand core values, cultivating a culture to achieve excellence.

“It is an honor to receive another Forbes Travel Guide 5 Star Award. This is a recognition of our teams’ hard work and perseverance to continue providing the best and safest experiences after an extraordinary time in the travel and hospitality industries. We look forward to welcoming back more of our guests as the world’s borders start to open again,” adds David Batchelor, Solaire’s Senior Vice President for Resort Operations.

For more information, visit www.solaireresort.com.

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Global inflation to stay stubbornly high as wrecked supply chains persist

April 28, 2022 | 2:01 pm

BENGALURU — The global streak of high inflation is far from over and aggressive monetary policy tightening will fall short in taming price pressures to mandated levels as broken supply chains are unlikely to mend anytime soon, Reuters polls showed.

Inflation in most countries has soared to multi-year highs, driven by a rebound in economic activity and a further straining of rampant supply chain disruptions.

While economists were expecting inflation to moderate this year with signs of supply shocks easing, Russia’s invasion of Ukraine and recent lockdowns induced by a resurgence in coronavirus disease 2019 (COVID-19) cases in parts of China, a major manufacturer, have derailed much of that optimism.

Analysis of global inflation data and the New York Federal Reserve’s Global Supply Chain Pressure Index (GSCPI), which gauges supply distortions, showed there is a stronger correlation now between supply chain disruptions and inflation than before the pandemic, particularly in the UK, the euro zone and the United States.

But there is a significant lag: while the GSCPI rose to its highest in Q4 2021, inflation was still months away from a peak.

That has made predicting inflation an even greater challenge for economists whose predictions have consistently been on the rise.

“I don’t think the supply chain disruptions are fully reflected in some of the inflation forecasts and that’s probably the reason why we might see forecasts go higher in the coming months,” said Brendan McKenna, international economist at Wells Fargo.

“I still think there’s some catch-up to be done on that front. Banks and even central banks didn’t really fully appreciate the supply chain disruptions we saw last year and might continue to see this year, partly a factor of the Russian-Ukraine crisis.”

Forecasts of 46 economies polled for inflation this year are now 3.9 percentage points higher on average from late 2020, the first time inflation forecasts for 2022 were sought.

In addition to medians, ranges have also moved upward.

For 2023, forecasts have increased by 1.1 percentage points on average so far since early 2021. Going by the consistently increased forecasts over the past year there are likely to be further rises.

“People are slow to see these things because they don’t necessarily look far enough upstream towards the sources of production, nor do they necessarily account for the delays in transit,” said Willy Shih, professor of management practice at Harvard Business School and an expert on supply chains.

“There is a time lag in all these supply chains depending on how far upstream you go, but you won’t feel it until many weeks, or sometimes months, later.”

Supply chain disruptions and their impact on inflation remain largely out of central banks’ control, yet many have begun withdrawing ultra-loose monetary policy to control soaring inflation.

Projections so far show inflation in 29 of 39 economies surveyed with stated central bank targets will remain above mandates this year and 16 next year.

To further complicate matters, policymakers must tackle sticky inflation with a high risk of a significant economic slowdown — in some cases recession — lingering in the background.

“Inflation tends to be a slow killer…. It may take a little bit more time before it really feeds into demand destruction and then the economy starts to slow down,” said Elwin de Groot, head of macro strategy at Rabobank. “I find it hard to accept growth does not slow because of inflation. That’s impossible.

“Inflation is no longer going to be as structurally low as we’ve seen after the global financial crisis and the past 10–15 years of slower inflation than central banks were aiming for; those times may be behind us.” — Reuters

Microsoft discloses onslaught of Russian cyberattacks on Ukraine

April 28, 2022 | 1:31 pm

cyber-crime — REUTERS/KACPER PEMPEL/FILE PHOTO

RUSSIAN government hackers carried out multiple cyber operations against Ukraine that appeared to support Moscow’s military attacks and online propaganda campaigns, Microsoft said in a report on Wednesday.

The reported intrusions — some of which have not been previously disclosed — suggest that hacking has played a bigger role in the conflict than what has been publicly known.

The digital onslaught, which Microsoft said began one year prior to Russia’s Feb. 24 invasion, may have laid the groundwork for different military missions in the war-torn territory, researchers found.

Between Feb. 23 and April 8, Microsoft said, it observed a total of 37 Russian destructive cyberattacks inside Ukraine.

The Russian Embassy in Washington did not immediately return a message seeking comment.

The findings underscore how modern warfare can combine digital and kinetic strikes, experts said.

“Russian generals and spies have tried to make cyberattacks part of their war effort while they’ve struggled on the battlefield,” said Thomas Rid, a professor of Strategic Studies at the Paul H. Nitze School of Advanced International Studies at Johns Hopkins University.

Microsoft said Russia’s hacking and military operations worked in “tandem against a shared target set.” The tech company said it could not determine whether this correlation was driven by coordinated decision-making or simply because of shared goals.

For example, a timeline published by Microsoft showed that on March 1 — the same day a Russian missile was fired at Kyiv’s TV tower — media companies in the capital were hit by destructive hacks and cyberespionage.

In another case, the company’s cybersecurity research team recorded “suspected Russian actors” lurking on Ukrainian critical infrastructure in the northeast city of Sumy, two weeks before widespread electricity shortages were reported in the area on March 3.

The next day, Microsoft said, Russian hackers broke into a government network in the central Ukrainian city of Vinnytsia. Two days later, missiles leveled the city’s airport.

Victor Zhora, a top Ukrainian cybersecurity official, said on Wednesday that he continues to see Russian cyberattacks on local telecom companies and energy grid operators.

“I believe that they can organize more attacks on these sectors,” Mr. Zhora told reporters. “We shouldn’t underestimate Russian hackers but we probably should not overestimate their potential.”

He thanked Microsoft, the U.S. government and multiple European allies for their cybersecurity support.

Since the start of the war, academics and analysts have said Russia appeared to be less active in the cyber domain against Ukraine than expected. The Microsoft report reveals a flurry of malicious cyber activity, although its impact in most cases has been either unclear or not immediately evident.

Two weeks ago, the US government publicly exposed a cyberweapon, known as Pipedream, that was designed to damage industrial control systems. While the tool hasn’t been attributed to Russia, it is viewed as highly dangerous and its discovery coincides with the Ukraine conflict. — Raphael Satter, Christopher Bing and James Pearson/Reuters

Charo finds a partner in health

April 28, 2022 | 1:30 pm

“The whole idea that someone you dearly love is not well at the time of COVID-19 is really scary.”

This was what Charo Santos-Concio had to say about her pandemic experience thus far. In the past year, she underwent one of her most trying challenges in her life because her husband, Cesar Rafael Concio, Jr. needed constant medical attention due to an existing health concern.

“I went through a roller-coaster ride because my husband’s condition required us to make frequent hospital visits,” she recalls. “You really feel the anxiety, the worry, and the fear that you might get infected. However, it also strengthened my resolve to face these fears because my husband needs me.”

Charo further shared that, despite the stresses, it was important to accept the circumstances, remain calm, and keep up with the flow. “Life goes on. We must all learn to adjust to the new normal. We cannot be paralyzed by our fears,” she says. “Kailangan nating harapin ‘yan. Tingnan natin nang mata sa mata. Hindi tayo puwedeng magpatalo.”

The experience also highlighted the importance of securing her and her family’s health. “We must never take health for granted,” Charo reiterates. “We must all live an active life and take very good care of ourselves. It is equally important to look after our mental well-being as part of living healthier.”

And there’s also the importance of protecting one’s finances. Charo recognizes the importance of having a health protection plan to be financially secure should an illness strike. “Importante sa akin ang sense of security. Importante sa akin that whatever happens to me, I will not be a burden to my loved ones,” she says.

This was a lesson learned after the demise of her father, where the proceeds from his insurance policy allowed the family to financially cope after his passing. This experience taught her to be pragmatic and to embrace the value of security and peace of mind that an insurance policy brings to the family. “Ayaw mong iwanan ang mga mahal mo sa buhay with uncertainty about their future,” Charo shares. “As we work hard for ourselves and our loved ones, we should also put our money to good use by investing it in insurance, health protection, and mutual funds.”

Today, Charo looks forward to living a full life with her loved ones. And while she has retired, she continues to take on interesting projects every now and then. With Sun Life as her partner in health, she is assured that no matter what happens, she and her loved ones are financially protected from life’s unexpected twists and turns. “Having a partner in health can indeed help you lead a brighter life,” she muses.

Just like Charo, you too can secure your future and be financially protected should an illness strike. Know more about Sun Life’s Partner in Health campaign by visiting https://sunlife.co/SLPIH.

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Measles cases jump 79% in 2022 after COVID hit vaccination campaigns

April 28, 2022 | 12:55 pm

LONDON — Measles cases jumped by 79% in the first two months of this year compared to 2021, after coronavirus disease 2019 (COVID-19) and lockdowns disrupted child vaccination campaigns around the world, according to data from UNICEF and the World Health Organization (WHO).

In January and February, there were 17,338 measles cases reported worldwide, up from 9,665 in the same period last year.

Measles is a very contagious disease that can be particularly dangerous for young children and babies. It spreads more quickly than Ebola, flu, or COVID-19.

UNICEF executive director Catherine Russell described the immunization gaps combined with a return to social mixing in the wake of the pandemic as a “perfect storm.”

“Measles is more than a dangerous and potentially deadly disease. It is also an early indication that there are gaps in our global immunization coverage, gaps vulnerable children cannot afford.”

The five countries with the largest measles outbreaks in the last 12 months were Somalia, Liberia, Yemen, Afghanistan and Ivory Coast. There have been 21 major outbreaks during that period.

Child immunization campaigns were knocked off course around the world during the coronavirus pandemic, and things have not fully recovered.

At the start of April, 58 campaigns in 43 countries were still postponed, impacting 212 million people — mostly children. Nineteen of those campaigns are for measles, putting 73 million children at risk, UNICEF and WHO said.

Immunization campaigns for diseases like typhoid and polio were also disrupted. Last month, Malawi reported its first polio case in decades while Pakistan, one of only two countries where polio remains endemic, recorded its first case for more than a year this month.

The WHO and UNICEF said it was imperative to get the vaccination drives back on track. — Jennifer Rigby/Reuters

Metro Manila’s economic output rises by 4.4% in 2021, below PHL’s 5.7% growth — PSA

April 28, 2022 | 11:07 am

The National Capital Region’s (NCR) economy rebounded last year from a double-digit contraction in 2020, but still remained below the national average, the Philippine Statistics Authority (PSA) reported on Thursday.

Preliminary results from the latest regional accounts showed the NCR’s economic output went up by 4.4% last year, reversing the 10% drop in 2020. This, however, was still lower than the 7% growth in 2019.

At current prices, Metro Manila’s economy was estimated at P6.158 trillion last year, higher by 6.2% from P5.801 trillion in 2020. Still, this was lower than P6.294 trillion in pre-pandemic 2019.

All 17 regions posted increases, mirroring the Philippine economy’s upwardly revised 5.7% growth in 2021.

However, Metro Manila’s economic growth fell below the national output. Other regions that missed the 5.7% national growth last year were Central Visayas (5.4%), Soccsksargen (5.2%), Cagayan Valley (5.1%), Ilocos Region (4.4%), Bicol Region (4.3%), and Mimaropa Region (3.3%).

On the other hand, Calabarzon led the 17 regions with 7.6% growth last year, a turnaround from 10.5% decline in 2020. It was followed by the Bangsamoro Autonomous Region in Muslim Mindanao (7.5% from -1.9%), Cordillera Administrative Region (7.5% from -10.2%), and Central Luzon (7.4% from -13.9%).

The capital region remained the largest contributor to national economic output last year with 31.5% share, a bit lower than 31.9% share in 2020. Metro Manila was followed by Calabarzon’s 14.7% share, Central Luzon’s 10.7%, and Central Visayas’ 6.5%.

On a per-capita basis, NCR rose by 3.2% last year, reversing the 11.1% decline in 2020. This was slower than the 5.6% growth back in 2019. — Bernadette Therese M. Gadon

Now’s the time to welcome new beginnings at SMDC’s Dawn Residences

April 28, 2022 | 10:58 am

Start fresh and start now to maximize investment returns

Property consulting firm, Colliers Philippines, signaled optimism on the recuperation of the real estate industry, expressing its hope of a gradual “V-shaped” recovery expected to take off this year.

The group anticipates a bounce-back in residential demand on the strength of rising vaccination rates, macroeconomic recovery, and sustained remittances from Filipinos working abroad, among other factors. Supporting the rosy outlook is the Bangko Sentral ng Pilipinas’ Residential Real Estate Price Index, which showed an uptick in the price of residential formats, attributed to “stronger consumer demand, particularly [for] townhouses and condominium units.”

What this all adds up together is the perfect time to start tapping into properties positioned to yield lucrative returns. A prime example is SM Development Corporation (SMDC)’s newly launched development in Laguna, Dawn Residences. An idyllic vertical garden community, Dawn Residences presents residents and investors a chance at a new beginning, and a lease on a new life: the ‘Good Life.’

Capture a wide rental market with first-rate city offerings, and endless employment or business opportunities

When it comes to sustainable living, SMDC raises the bar with master-planned integrated communities that posit a convenient, low-carbon footprint lifestyle. Situated between “The Enterprise City of the Philippines,” Cabuyao, and “The Lion City of South Luzon,” Santa Rosa, Dawn Residences offers abundant employment and business opportunities, along with the much-coveted 15-minute city living.

Driving one’s kids to school in Santa Rosa, for instance, or reporting to work in Cabuyao for industry giants like Nestle and Procter & Gamble, are both quick 15-minute drives. Fifteen minutes, too, is what it takes to access South Luzon Expressway to either catch a flight at the Ninoy Aquino International Airport, or go to the beach for that much-awaited weekend with family.

With tons of career, livelihood, and social opportunities, in both Santa Rosa and Cabuyao, SMDC’s Dawn Residences is not only an agent of personal growth. It also unlocks a wide rental market that includes everyone — from established families to local upgraders.

Turn a new leaf at a promising location

The role of infrastructure development in the overall growth of a community cannot be overstated. Better infrastructure comes easier pathways to doing business, which drives economic development and, in turn, improves the locality’s quality of life.

Investors at SMDC’s Dawn Residences are set to benefit from Laguna’s manifold infrastructure projects in the pipeline. One of which is the Laguna Lakeshore Road Network Project on the western shore of Laguna de Bay, set to unlock more convenient connections between the southern areas of Metro Manila and Laguna.

The new road network is expected to provide a faster alternative to motorists, and likewise boost the economies of Laguna, Rizal, Quezon and Batangas. The project will have interchanges in Sucat, Alabang, and Tunasan in Muntinlupa, as well as in San Pedro, Biñan, Calamba, Santa Rosa, and Cabuyao in Laguna.

A new dawn rises with sustainable investment

SMDC’s expertise, unwavering commitment, and vision of a sustainable world founded on the three pillars — social, economic, and environmental — have, all together, made it an undisputed authority on community building. For Dawn Residences, this translates into features that pay importance to life’s smallest joys.

For one, the buildings’ thoughtful and nature-friendly design allows natural light and airflow to permeate throughout the development, providing residents a fresh and very comfortable life in their community.

Clear waters in the resort-style swimming pools invite you to refresh as the sunlight filters through the trees.

Sports and recreation amenities, on the other hand, give families opportunities to bond after a busy week.

Top that off with a vast expanse of greeneries, linear parks, and the rustic charm of Laguna — all entrancing residents, both young and old, to a realm that soothes the spirit and strengthens the mind and body.

With minimal capital investment and huge returns – especially as property prices rise, and pandemic-induced record-low interest rates surface – buying a home at Dawn Residences right now presents a fortuitous start. Its premium location, along with it being a complete and connected development, will surely command exceptional value and capital appreciation over time.

True to the title they hold, PropertyGuru Philippines Property Awards Best Developer, SMDC, provides comprehensive property management services and end-to-end leasing services to give you a worry-free investment experience.

Whether you decide to have your unit leased, to convert it as a serviced apartment, or to make it your new home, you are assured that it’s an investment to witness the many, many beginnings you have yet to have throughout the course of your life.

Follow SMDC on Facebook, Instagram, YouTube, and Twitter, or visit the SMDC website to learn more about Dawn Residences.

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Asticom bags three golds in 2022 TITAN Business Awards

April 28, 2022 | 10:06 am

Asticom Group of Companies, a wholly-owned subsidiary of Globe, bagged three golds in the recent 2022 TITAN Business Awards. The international awards recognize innovative excellence across all global businesses and enterprises from wide-ranging industries.

The shared services group excelled in the Company & Organization category for its overall strategy and efforts to innovate and grow. It was also hailed in the Human Resources category as having the best health and wellbeing strategy. Lastly, Asticom’s technologies and systems were cited in the IT category for their efficiency in resolving issues in the organization.

“We’re honored to be recognized, along with many other distinguished organizations, for the work we do at Asticom. These awards further affirm the impact of our strategies and approaches in empowering our clients and the people who made these achievements possible. Asticom continues to pursue excellence relentlessly, so we can also continue improving more Filipino lives,” said Mharicar Castillo-Reyes, Asticom President and CEO.

TITAN Business Awards, hosted by the International Awards Associate (IAA), honors organizations, big and small, private and public, profit and non-profit, as well as people behind their success

This year, the awards received over 800 nominated entries from all across the globe, with participating countries numbering up to 50, including the United States, United Kingdom, Australia, India, Ireland, New Zealand, Netherlands, and Canada

Asticom is part of Globe’s ecosystem. It owns information technology and business services outsourcing company Asti Business Services Inc. (ABSI), HR and Digital solutions provider HCX Technology Partners Inc., engineering firm Fiber Infrastructure and Network Services Inc. (FINSI), and logistics provider BRAD Warehouse and Logistics Services Inc.

To learn more about Asticom, visit https://https://asticom.com.ph/.

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MultiSys launches online store builder Multistore for MSMEs, entrepreneurs

April 28, 2022 | 9:30 am

Multistore---phone-and-laptop-OL — Customize your own website with Multistore.

With Multistore, entrepreneurs can build their own online store in minutes and have everything they need to run a business in one platform

Recognizing the continuing challenge of micro, small and medium enterprises (MSMEs) in digitalizing their businesses amid the pandemic, leading software solutions company Multisys Technologies Corporation introduces an online store builder called Multistore, which entrepreneurs can use to start their own digital journey.

Multistore is an end-to-end online store for food and beverages, retail, groceries and market, and other services with door-to-door delivery and e-payment features. It is a product of integrating three MultiSys flagship platforms, namely Deliverybox, which supports pickup, delivery, and scheduled delivery services; Paybox, which enables cash-on-delivery (COD), e-wallets, and bank payments; and Storebox, which allows for marketplace and digital store management.

Multistore equips MSMEs, restaurateurs, suppliers of commercial and raw goods, and even large-scale enterprises to have their own online store, as well as run and oversee their business operations, anytime and anywhere, in one web portal—from product management, to delivery and logistics services, content management and marketing, customer support, procurement management and inventory tracking, to name a few.

Apart from presenting a dynamic and all-around online retailing and eCommerce marketplace, Multistore also provides a comprehensive forecasting metrics, live data trends, comparative reports, notifications and order tracking, collection and analytics dashboard in customizable timelines. These help entrepreneurs keep track of their company performance so that they are empowered to make timely and effective business decisions.

Various payment options, including Credit/Debit, online banking, e-wallets, and cash payment options, as well as flexible shipping options of leading logistics providers and delivery channels, are also in the platform for quality customer experience and convenience.

Entrepreneurs can easily utilize all these features by visiting and onboarding with http://www.multistore.ph/.

MultiSys CEO and founder David Almirol shares, “Today, business resiliency translates to being able to adopt and maximize available technologies to continue operations. We have developed Multistore so that entrepreneurs, especially those who feel financially and conceptually overwhelmed by technologies, are equipped and empowered to tap new markets in the digital realm, and run their business and reach their customers in one comprehensive, seamless platform.”

Multistore’s content management dashboard with tools to design and customize online stores

Multistore will be a key component of PLDT Enterprise’s BEYOND FIBER offering as one of its newest Curated Digital Solutions to enable MSME growth through a comprehensive e-commerce platform.

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NG budget deficit narrows in March

April 28, 2022 | 12:34 am

Workers are seen at a construction site in Manila. — PHILIPPINE STAR/ RUSSELL PALMA

By Tobias Jared Tomas

THE NATIONAL Government’s (NG) budget gap narrowed in March as revenue collection and spending grew by double digits, the Bureau of the Treasury (BTr) reported on Wednesday.

Data from the BTr showed the Philippines’ budget deficit shrank by 1.97% to P187.7 billion in March, from P191.4 billion in the same month in 2021.

Month on month, the fiscal gap widened from the P105.8-billion deficit in February.

Government spending accelerated by 18.14% year on year to P481.55 billion in March, due to higher national tax allocation releases and budgetary support for government-owned and -controlled corporations.

Starting this year, local government units are given a bigger share in national tax collections, alongside the transfer of basic services, due to the Mandanas ruling.

The BTr said expenditures also increased as the Department of Education and the Commission on Higher Education released funds for scholarship programs, while the Department of Public Works and Highways and the Department of National Defense implemented capital outlay projects.

Primary expenditures, or spending net of interest payments, went up by 18.35% to P426 billion in March.

Interest payments increased by 16.54% to P55.5 billion.

Meanwhile, state revenues jumped by 35.96% to P293.9 billion year on year in March, as the economy gradually reopened after pandemic restrictions eased.

During the month, tax revenues rose by 28.69% to P244.1 billion, and nontax revenues surged by 88% to P49.8 billion.

Metro Manila and other areas were downgraded to the most lenient alert level starting March, as coronavirus infections plunged.

The Bureau of Internal Revenue (BIR) collected P170.4 billion, up by 27.76% year on year, while the Bureau of Customs (BoC) collected P70.8 billion, up by 29.33%.

The Treasury reported P33.4 billion in revenues in March, surging by 107% from a year ago, due to higher dividend remittances, income from bond sinking fund investments and the National Government share from the Philippine Amusement and Gaming Corp.’s income.

Q1 DEFICIT
For the first quarter, the budget deficit shrank by 1.44% to P316.8 billion, from P321.5 billion during the same period in 2021.

Year to date, revenues jumped by 12.62% to P784.4 billion, while expenditures increased by 8.18% to P1.10 trillion.

Tax collections rose by 11.73% to P697.2 billion in the January to March period, thanks to the 7% increase in collections by the BIR to P502.8 billion. The BoC’s collections went up 26.39% to P188.6 billion in the three-month period.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the reopening of the economy enabled the government to increase tax collections in the first quarter. He noted government spending on the pandemic response may have declined after the implementation of granular lockdowns.

“Measures to further reopen the economy towards greater normalcy such as the proposed nationwide Alert Level 1 would further help improve the government’s tax revenue collections,” Mr. Ricafort added.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said that the uptick in spending was due to “last minute” expenditures before the election ban on infrastructure projects began last March 25.

“Revenue growth can be tied to the 107% increase of borrowing (BTr) linked to a retail treasury bond issuance and the 70.8% jump in BoC due to more expensive fuel,” Mr. Mapa said.

Mr. Ricafort said sustaining the improvements in fiscal performance would depend on the next administration’s ability to assemble a “credible and competent” economic team, intensified tax collections, and good governance.

These measures will be needed in order to pay for the debt incurred since the pandemic started, he added.

The country has borrowed P1.31 trillion and received grants worth P2.7 billion for its COVID-19 response from 2020 to Jan. 14, 2022.

“In the coming months, and with the changeover in leadership, the new administration must look to walk the very thin line of fiscal prudence at a time when the economy may be in need of support. The incoming president will be inheriting a substantial debt pile, which will impact his or her ability to hit the ground running,” Mr. Mapa said.

The government has set a budget deficit ceiling of P1.65 trillion for 2022 equivalent to 7.7% of gross domestic product.

ASIA-PACIFIC
Meanwhile, Fitch Ratings said it expects general government deficits in many Asia-Pacific economies, including the Philippines, to narrow this year, although still significantly higher than pre-pandemic levels.

“Subdued economic recovery in a large part of Asia is a key reason for the sustained high deficits, as emergence from pandemic-related headwinds has been slower than in other regions. Political tolerance for higher deficits may also be greater, for instance, in Australia and Korea, which had robust economic rebounds,” Fitch said in a note on Wednesday.

It noted the sharp increase in commodity prices may pose a “rising risk” to fiscal consolidation.

“Some governments have raised implicit or explicit subsidies to cushion the impact on households… Revenue growth could also be more subdued to the extent commodity prices dampen economic performance,” Fitch said.

Asia-Pacific will also have to deal with rising interest payments as borrowing costs go up amid monetary policy tightening from major central banks like the US Federal Reserve, it added.

Fitch said limited debt reduction in Asia-Pacific will be likely, as many economies return to high growth in the next few years. However, this may not be enough to sharply reduce debt incurred during the pandemic.

“Debt trajectory uncertainties drive our negative outlook in India. They are also a factor in the Philippines, in combination with potential medium-term growth challenges,” it said.

The government has been preparing a fiscal consolidation plan to manage the national debt.

The country’s outstanding debt stood at P11.73 trillion as of end-2021. This pushed the debt-to-gross domestic product ratio to a 16-year high of 60.5%, slightly beyond the 60% threshold considered as manageable by multilateral lenders for developing economies.

The debt watcher in February kept its negative outlook on the investment grade “BBB” rating of the Philippines. This means a credit downgrade still remains a possibility within the next 12 to 18 months. — with LWTN

BSP to scale back policy support as economy recovers, Diokno says

April 28, 2022 | 12:33 am

Fresh fish products are up for sale at the Marikina Public Market, April 13. Economic activity improved in the first quarter as mobility curbs eased in Metro Manila and other areas. — PHILIPPINE STAR/ WALTER BOLLOZOS

THE PHILIPPINE central bank will take into account the pace of economic recovery as it pursues monetary policy normalization.

“The Bangko Sentral ng Pilipinas (BSP) is mindful that as the economy recovers and gradually returns to normal, the extraordinary measures will need to be scaled back,” BSP Governor Benjamin E. Diokno said in a speech at the virtual Philippine Singapore Business Investment Summit on Wednesday.

“The timing and conditions of BSP’s exit strategy for its pandemic interventions will continue to be guided by the inflation and growth outlook over the medium term, the state of public health, and domestic and global risks to the economy,” he added.

Mr. Diokno on Monday told Bloomberg the central bank may consider increasing policy interest rates at its June 23 meeting as the economy likely expanded by around 6-7% in the first quarter.

First-quarter economic data will be released on May 12.

BSP officials previously said they will assess the need for a rate hike in the second half of 2022.

Last month, the BSP kept policy rates untouched at record lows even as it raised its inflation forecast for 2022 to a beyond-target at 4.3% as oil and commodity prices surged.

Mr. Diokno previously said he would want to see about four to six quarters of consecutive economic growth before adjusting policy rates.

If Philippine gross domestic product (GDP) expands in the first quarter, this will mark the fourth successive quarter of economic growth following the pandemic-induced recession.

“Recent key economic developments give us confidence in the country’s ability to sustain recovery in the near term,” Mr. Diokno said.

“Growth will be supported by the implementation of the 2022 national budget, the ‘Build, Build, Build’ projects, the Corporate Recovery and Tax Incentives for Enterprises law, as well as amendments to the Retail Trade Liberalization Act, the Foreign Investment Act, and Public Service Act,” he added.

Mr. Diokno acknowledged uncertainties caused by the Russia-Ukraine war on the outlook for trade, investments, and remittances, but emphasized the limited economic linkages to the countries involved.

He said the country’s external position is still a source of strength for the economy.

“The country’s robust external accounts and structural foreign exchange inflows are expected to mitigate potential negative impacts from advanced economies’ monetary tightening, as well as headwinds from the Ukraine-Russia conflict,” he said.

Gross international reserves worth $108.5 billion as of end-March are equivalent to 9.6 months’ worth of imports of goods and payments for services and primary income.

Mr. Diokno said external debt is also relatively low at 27% of the GDP as of end-2021, compared with approximately 60% in mid-2000s.

Philippine GDP rose by 5.7% in 2021 after the record 9.6% contraction in 2020. Economic managers expect GDP to rise by 7-9% this year.

Mr. Diokno has said policy interventions to support the economy during the pandemic infused over P2.2 trillion into the financial system. This is equivalent to about 11.1% of GDP.

Earlier this month, the BSP extended another P300-billion zero-interest loan to the National Government in March, payable until June 12. This was the sixth time the central bank extended budgetary support to the National Government.

The central bank chief also significantly lowered purchases of government securities. — Luz Wendy T. Noble

BSP to launch digital currency pilot project

April 28, 2022 | 12:32 am

A token of the virtual currency Bitcoin is seen placed on a monitor that displays binary digits in this illustration picture, Dec. 8, 2017. — REUTERS

THE BANGKO SENTRAL ng Pilipinas (BSP) is currently working on a pilot project that will test the use of wholesale central bank digital currency (CBDC) for large-value financial transactions among selected financial institutions.

“The pilot project covers the experimentation of the CBDC’s use to transfer large-value financial transactions on a 24 [hours] by 7 [days] basis, across a limited number of financial institutions but possibly covering both banks and nonbank institutions,” BSP Governor Benjamin E. Diokno said in his speech at the Alliance for Financial Inclusion Policymakers’ Roundtable at the 2022 International Monetary Fund-World Bank Spring Meetings held on Tuesday.

Project CBDCPH is a major step for the country’s central bank and the finance industry “to better understand the opportunities and risks of wholesale CBDCs,” Mr. Diokno said.

He said wholesale CBDCs may have value in addressing some pain points, particularly in large cross-border foreign currency transfers done through the national payment system.

“We believe that we need to address this issue by reducing transaction costs, shortening processing times, and enhancing the transparency of such transfers,” Mr. Diokno said.

“Second is the settlement risk exposure arising from the use of commercial bank money in our equities market. We intend to mitigate this risk with CBDC, being a central bank money,” he added.

The BSP governor said wholesale CBDCs may also ease challenges related to the intraday liquidity facility which is not yet automated end-to-end.

The central bank said the pilot project will develop its capacity in operationalizing CBDCs. The project covers areas including policy and regulatory considerations, technological infrastructure, governance and organizational requirements, legal matters, payment and settlement models, reconciliation procedures, and risk management.

External advisers from multilateral institutions and international standard-setting bodies have also been tapped for the project.

The BSP chose to focus on the wholesale aspect of CBDCs as it assessed that it will have bigger impact compared with retail use cases.

“There is minimal value added of the use of retail CBDC in the Philippines in the short term given the progress in our widespread implementation of retail payment digitalization and financial inclusion reforms,” Mr. Diokno said.

He has become more open to exploring CBDCs, in contrast to earlier statements that the central bank is not in a hurry to implement CBDCs.

The BSP has previously said it sees opportunities from CBDCs in terms of additional options for monetary policy action, boosting competition and innovation among financial industry players, as well as broader financial inclusion. — Luz Wendy T. Noble