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Globe bags UN SDG Award for ‘People’ in 1st SDG Awards in the Philippines

Globe, the country’s digital solutions provider, leveraged its strength in technology to keep its 8,000 employees safe, connected, and engaged during the pandemic. With this, Globe took home the first-ever United Nations Sustainable Development Goal (UN SDG) Awards under the People Category hosted by the UN Global Compact Network Philippines (UNGCP).

The Awards, which recognize companies that have showcased best practices in implementing the UN SDGs in their operations, recognized Globe for its outstanding contributions to people’s overall wellness.

The recognition affirms Globe’s commitment to the United Nations Sustainable Development Goals, particularly UN SDG No. 3, which promotes healthy lives and well-being for all, and SDG No. 9 on fostering innovation.

“It is with deep gratitude and thanks that we receive this award. The pandemic has taught us to maximize the power of technology to bridge connections and keep our employees together. This award inspires us to stay true to our commitment,” said Nico Bambao, Globe’s People Experience Director, during the virtual awards ceremonies held recently.

Globe immediately saw the need to support and enhance the physical and mental well-being of its workforce, especially during the lockdowns when people were forced to juggle responsibilities at home and at work.

With technology within its reach, Globe used the opportunity to develop internal digital solutions for employee communication and connection such as:

  • DUDE Bot – Digital Usher for Disaster and Emergencies, a Workplace chatbot designed to perform automated daily health checks and direct employees to relevant sources of information, links to healthcare partners, and direct contacts to the company’s COVID-19 Response Team for immediate support.
  • HopeChat – a 24/7 counseling platform co-developed with Australia-based Virtual Psychologist (VP) in July 2020 to help employees cope with the psychological impact of COVID-19.
  • GCheck – a self-assessment tool that determines if an employee is allowed to enter Globe premises for the day. Fit-to-work unlocks GAccess space features, while the latter triggers the HR COVID-19 team for support.
  • Wanda – a recognition chatbot that enables employees to send special e-Cards to one another to nurture Globe’s culture of recognition even while working apart.

By implementing these technologies, Globe was able to manage employees’ health remotely and when they needed to visit the office.

“Our employees and workforce are major factors in delivering uninterrupted services to Filipinos, especially during the pandemic so we had to keep them safe and healthy. We value our connections at work the way we value our customers,” said Bambao.

To learn more about Globe’s sustainability initiatives, visit https://www.globe.com.ph/about-us/sustainability.html.

 

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7 Kitchen products to make your space more comfortable and organized

If you plan to build a space for a countertop in your kitchen, this is your sign to do it because it is versatile and space-efficient. Consider these bar chairs, trays, jar canisters, mugs, mug tree holders, charger plates, and fruit baskets from Heim decors and organizational products, which Wilcon Depot exclusively offers for an opulent-looking bar that your family will enjoy. 

Comfortable Bar Chairs 

A bar or breakfast countertop setup will never be complete without bar chairs for comfortable seating while waiting for breakfast or eating snacks. These sleek bar chairs are designed with adjustable height to fit your kitchen’s size and make you comfortable while unwinding. In addition, these bar chairs have a variety of colors and designs to choose from that can add texture and style depending on your home themes.

 

 

Modern Trays

From being a tool to serve food quickly, these trays can also be decorations on countertops or a place for the powdered beverages jar to organize your bar or coffee table. The aesthetic patterns and opulent style colors can add elegance to your breakfast countertops or coffee table. Make your kitchen tidy and aesthetically pleasing to the eyes with these trays.

NEW: Organize Your Countertops With These Jar Canister

Start organizing your countertops with these jar canisters that are reusable and sustainable. Jar canisters are made of glass, which is an excellent choice for your minimalist coffee table and countertops. These are also easy to clean and sanitize. In addition, the transparent design of these jars allows you to check the content inside without a hassle.

 

NEW: Your New Coffee Or Tea Partner

One of the essentials that we must not forget in creating breakfast countertops is the mug. These bright color mugs will be your new favorite tea or coffee partner because it is made in porcelain which is heat resistant and durable. These mugs are a must-purchase to add aesthetics to your breakfast countertops or coffee table. 

 

Versatile Mug Tree Holders

For convenience, these mug tree holders are perfect for those who want a quick coffee time. A mug tree holder is an energy-efficient item that can be used for your mug collections because its job is to organize your favorite mugs in one place by hanging the handle on the hook of the tree holder. In addition, it has versatile designs and colors suitable for any kitchen theme. Decorate your kitchen by placing it on your breakfast countertops and coffee table to make your kitchen stylish.

 

Classy Charger Plate

Charger plates are typically used in catering businesses for a casual dining setup because they are smaller in size than regular plates and can hold appetizers, hors d’oeuvres, or desserts. On the other hand, you can use these charger plates in your home as decorative elements because they come in various designs and colors that add elegance to a kitchen. These plates make breakfast countertops and coffee tables ideal for a much more inviting morning breakfast or snacks.

 

Functional Fruit Basket

These sleek fruit baskets are functional, especially if you want a tidy, organized fruit section for your kitchen countertops. These are made of metal, which makes these items durable and easy to sanitize for you to set fruits, vegetables, or snacks. Make your countertops ideal by using these fruit baskets as your centerpiece in your countertops.

 

It is imperative to consider what you purchase for your house because creating a pleasing ambiance in every angle of your home is the right choice for your well-being. These items from Heim decors provide an aesthetically alluring appearance that feels welcoming.

Explore the limitless product selections that Wilcon offers, ranging from Tiles, Sanitarywares, Plumbing, Furniture, Home Interior, Building Materials, Hardware, Electrical, Appliances, and other DIY items.

For more information about Wilcon, you can log on to www.wilcon.com.ph or follow their social media accounts on Facebook, Instagram, and Tiktok and subscribe and connect with them on Viber Community, LinkedIn, and YouTube.

 

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.

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Jan.-April births, deaths fall

FILE PHOTO

The number of registered births, deaths, and marriages fell in the first four months of the year versus the same period in 2021, preliminary data from the Philippine Statistics Authority (PSA) showed.

Preliminary vital statistics data from the PSA said births registered in the January to April period this year fell 34.7% to 250,866 from 384,154 last year.

The Calabarzon (Cavite-Laguna-Batangas-Rizal-Quezon) Region accounted for 15.9% of the total births in the first four months of the year at 39,872. This was down 10.5% from the 44,549 recorded in 2021.

It was followed by National Capital Region (NCR) with 13.2% share of the total births at 33,135, Central Luzon (10.6% at 26,630), Bicol Region (6.8% at 17,126), and Central Visayas (6.3% at 15,726).

NCR registered the biggest drop in births at 72.2%.

By sex, male births were tallied at 52% of the total, or 130,462. While female births were registered at 48% or 120,404 of the total.

Meanwhile, deaths were tallied at 157,507, 34.4% down from 240,240 in the same period in 2021.

Calabarzon likewise had the largest share of registered deceased at 15.5% (24,417). This was down 35.6% from the 37,934 tallied deaths in 2021.

Metro Manila is second at 13.1% (20,687), followed by Central Luzon at 12.3% (19,417), Western Visayas 9.2% (14,436), and Central Visayas at 6.8% (10,702).

In terms of assigned sex, male deaths stood at 56% or 88,484 of the total. Female deaths tallied 69,023 or 44% of the total deaths in January to April this year.

Similarly, marriages registered dropped 13.9% to 100,171 registered unions from 116,373 last year.

Calabarzon also had the most share in nuptials accumulated for January to April this year at 15.9% (15,926). This was 25.8% more than the registered marriages last year at 12,660.

Second to that was Central Luzon with 13% (13,030) share of the total marriages in January to April, followed by Metro Manila at 11.7% (11,690), Western Visayas at 7.6% (7,641), and Ilocos Region at 6.4% (6,360).

The information in the vital statistics report was compiled from tallies generated by city or municipal Civil Registrars during the period, consolidated by the PSA’s Provincial Statistical Offices and then submitted to the Office of the Civil Registrar General as of May 31.

The PSA also noted that vital events by sex, region, province, and highly urbanized city for Filipinos abroad are not included in the preliminary dataset. — Ana Olivia A. Tirona

Indonesia president wants Tesla to make electric cars in country — Bloomberg News

Courtesy of Tesla, Inc.

JAKARTA — Indonesian President Joko Widodo has urged electric vehicle (EV) maker Tesla to manufacture its cars, as well as batteries, in the country, in comments made to Bloomberg News on Thursday.

Jokowi, as the president is popularly known, said in an interview that Indonesia wants a “huge ecosystem of electric cars,” rather than simply draw on its natural resources to make batteries.

He also said Indonesia was considering imposing a tax on nickel exports this year to boost revenue. Officials have previously said this could come as soon as the third quarter.

The president and senior government officials held meetings earlier this year with Tesla’s founder Elon Musk, during which they said they had asked him to consider the Southeast Asian country as a car manufacturing hub, on top of making batteries.

Tesla representatives did not immediately respond to a request for comment. Indonesia’s investment ministry did not respond to questions regarding progress on the potential deal with Tesla.

Luhut Pandjaitan, a senior Indonesian minister overseeing talks with Tesla, earlier this month told media the US firm has struck deals worth about $5 billion to buy nickel products from nickel processing companies operating out of Indonesia’s Morowali in Sulawesi island. The nickel materials will be used in Tesla’s lithium batteries.

Mr. Luhut added his ministry was still negotiating with Tesla, but that Musk was “busy with domestic matters, regarding Twitter.”

Social media company Twitter Inc. and Mr. Musk are currently suing each other over Mr. Musk’s attempt to walk away from his deal to acquire Twitter for $44 billion.

During their meeting in May, Jokowi invited Mr. Musk to visit Indonesia in November, when the country will host a leaders summit for the Group of 20 major economies.

Companies that have invested or have announced their planned investment in EV manufacturing in Indonesia include Japanese firms Toyota Motor Corp and Mitsubishi Motors Corp and South Korea’s Hyundai Motor Group.

SGMW Motor Indonesia, part of a joint venture of SAIC Motor

Corp Ltd., General Motors Co and Wuling Motors, has an EV assembly factory in the resource-rich country. — Reuters

Taiwan farmers find space for solar to meet renewable energy targets

STOCK PHOTO | Image from Pixabay

TAOYUAN — At a row of greenhouses around 50 kilometers from Taiwan’s capital Taipei, vanilla farmer Tseng Tien-fu is installing dozens of solar panels, part of the island’s plan to meet its renewable energy goals without sacrificing scarce farmland.

Mr. Tseng, who exports most of his crop to Japan, is expanding his business to meet demand from elsewhere and government payments for solar energy will reduce any risk to his livelihood while he waits for the slow maturing plants to develop.

The use of “distributed” solar — panels installed on walls and rooftops — has become increasingly popular in regions where land is at a premium. Taiwan provides generous subsidies for rooftop panels, and the government is also obliged to buy the surplus electricity they produce, providing Mr. Tseng’s greenhouses with a vital new earning opportunity.

“It takes a long time to grow vanilla before there are any crops, but we can sell (electricity) from solar panels to the government for 20 years as soon as they are installed and have an income from that,” he said.

“So especially for plants like vanilla that take three years before there are any crops, I think (solar panels) are a very good combination.”

Mr. Tseng’s shift to solar is part of a wider attempt to solve one of the biggest challenges facing Taiwan as it strives to meet its renewable energy targets.

Agricultural land accounts for about a fifth of the densely populated island’s total area, and there is little room for sprawling wind and solar farms, which take up significantly more space than conventional energy sources.

Land shortages are one of the biggest obstacles to renewable energy development, which is estimated to require around 10 times more land per unit of power than conventional power sources.

As they try to decarbonize their energy systems, governments across the world have been trying to figure out how to minimize disruptions, avoid conflicts with farmers and prevent further agricultural and biodiversity losses.

In the United States, dozens of wind and solar projects have been blocked amid concerns about the occupation of farmland, and developers in China — the world’s biggest renewable energy market — are now being encouraged to make use of depleted mines, mountain slopes and deserts.

Taiwan failed to meet its interim solar capacity target of 11.25 GW this year and has little room for maneuver as it tries to raise solar capacity to 20 GW by 2025.

“There are not a lot of large-scale (solar energy installations): Taiwan has no desert and Taiwan’s land use is very intensive,” said Juang Lao-Dar, the Director of Planning at the Taiwan Executive Yuan Council of Agriculture.

“So when we develop green energy, from the country’s perspective, we have to look at solar panels that have a smaller impact on production, and it’s the same for the agricultural sector.” — Reuters

Record numbers resign in France as bargaining power balance shifts — labor ministry

REUTERS

PARIS — More French employees than ever quit their jobs at the end of 2021 and start of 2022, as the balance of bargaining power shifts away from employers, a labor ministry study showed on Thursday.

Over one million quit between October and March, the study by the ministry’s Dares research body showed, 90% of whom had coveted permanent labor contracts offering some of the highest level of job protection in the world.

Even though the figures were historically high, the trend was not as strong when viewed in relative terms, taking into account that the overall workforce has been growing in recent years, Dares said.

Growing numbers of people across many countries have left their jobs during the coronavirus disease 2019 (COVID-19) pandemic as skilled workers start to re-evaluate careers and life choices — a phenomenon that a US management professor famously dubbed the “Great Resignation.”

Dares said the latest French figures did not point to a shrinkage of the workforce on that scale.

It said the resignation rate in the euro zone’s second-biggest economy stood at 2.7% in the first quarter of 2022, the highest since the 2008-2009 financial crisis but below the level of 2.9% it had reached just before then.

“In the current context, the increase in the resignation rate thus appears to be normal, in line with the economic recovery from the COVID-19 crisis,” it said.

Tensions in the labor market, where bosses in some branches such as construction or hospitality increasingly struggle to recruit enough people, fed the trend, translating into job opportunities for many employees.

“Bargaining power is changing in favor of employees,” Dares said. — Reuters

OPEC chief says blame policymakers, lawmakers for oil price rises

STOCK PHOTO | ZBYNEK BURIVAL-UNSPLASH

LONDON — Policymakers, lawmakers, and insufficient oil and gas sector investments are to blame for high energy prices, not OPEC (Organization of the Petroleum Exporting Countries), the producer group’s new Secretary General Haitham Al Ghais told Reuters on Thursday.

A lack of investment in the oil and gas sector following a price slump sparked by coronavirus disease 2019 (COVID-19) has significantly reduced OPEC’s spare production capacity and limited the group’s ability to respond quickly to further potential supply disruption.

The price of Brent crude came close to an all-time high of $147 a barrel in March, after Russia’s ordering of troops into Ukraine exacerbated supply concerns. While prices have since declined, they are still painfully high for consumers and businesses globally.

“Don’t blame OPEC, blame your own policymakers and lawmakers, because OPEC and the producing countries have been pushing time and time again for investing in oil (and gas),” Al Ghais, who took office on Aug. 1, said in an online interview.

Oil and gas investment is up 10% from last year but remains well below 2019 levels, the International Energy Agency said last month, adding that some of the immediate shortfalls in Russian exports needed to be met by production elsewhere.

The OPEC official also pointed the finger at a lack of investment in the downstream sector, adding that OPEC members had increased refining capacity to balance the decline in Europe and the United States.

“We are not saying that the world will live on fossil fuels forever … but by saying we’re not going to invest in fossil fuels … you have to move from point A to point B overnight,” Mr. Al Ghais said.

OPEC exists to ensure the world gets enough oil, but “it’s going to be very challenging and very difficult if there is no buy-in into the importance of investing,” he said, adding that he hopes “investors, financial institutions, policymakers as well globally seriously take this matter (to) heart and take it into their plans for the future.”

 

RELATIVELY OPTIMISTIC

Oil has tumbled since March and Brent hit a six-month low below $92 a barrel this week.

The slide reflects fears of economic slowdown and masks physical market fundamentals, Mr. Al Ghais said as he took a relatively optimistic view on the outlook for 2023 as the world tackles rising inflation.

“There is a lot of fear,” he said. “There is a lot of speculation and anxiety, and that’s what’s predominantly driving the drop in prices.”

“Whereas in the physical market we see things much differently. Demand is still robust. We still feel very bullish on demand and very optimistic on demand for the rest of this year.”

“The fears about China are really taken out of proportion in my view,” said Mr. Al Ghais, who worked in China for four years earlier in his career. “China is a phenomenal place of economic growth still.”

OPEC, plus Russia and other allies, known as OPEC+, has unwound record oil-output cuts made in 2020 at the height of the pandemic and in September is raising output by 100,000 barrels per day.

Ahead of the next meeting which OPEC+ holds on Sept. 5, Mr. Al Ghais said it was premature to say what it will decide, although he was positive about the outlook for next year.

“I want to be very clear about it — we could cut production if necessary, we could add production if necessary.”

“It all depends on how things unfold. But we are still optimistic, as I said. We do see a slowdown in 2023 in demand growth, but it should not be worse than what we’ve had historically.”

“Yes, I am relatively optimistic,” he added of the 2023 outlook. “I think the world is dealing with the economic pressures of inflation in a very good way.”

OPEC+ began to restrain supply in 2017 to tackle a supply glut that built up in 2014-2016, and OPEC is keen to ensure Russia remains part of the OPEC+ oil production deal after 2022, Mr. Al Ghais said.

“We would love to extend the deal with Russia and the other non-OPEC producers,” he said.

“This is a long-term relationship that encompasses broader and more comprehensive forms of communication and cooperation between 23 countries. It’s not just in terms of production adjustment.” — Reuters

BSP raises policy rates by 50 bps

BW FILE PHOTO

By Keisha B. Ta-asan

THE BANGKO SENTRAL ng Pilipinas (BSP) raised its benchmark interest rate by 50 basis points (bps) on Thursday, and signaled it has room to further hike rates as it battles inflation.

The Monetary Board (MB) increased the overnight reverse repurchase rate by 50 bps to 3.75%, as expected by 13 out of 18 analysts in a BusinessWorld poll.

The rates on the overnight deposit and lending facilities were also increased to 3.25% and 4.25%, respectively.

The central bank has raised rates by a total of 175 bps so far this year.

“The Monetary Board deemed further monetary action to be necessary to anchor inflation expectations and avoid a further breach in the inflation target over the policy horizon,” BSP Governor Felipe M. Medalla said during a briefing after the MB meeting.

The BSP on Thursday also raised its inflation outlook for 2022 to 5.4% from 5% previously. This is beyond the central bank’s 2%-4% target band.

It lowered the 2023 inflation projection to 4% from 4.2%, as well as the 2024 outlook to 3.2% from 3.3% previously.

“The inflation target remains at risk over the policy horizon owing to broadening price pressures. Elevated inflation expectations likewise highlight the risk of further second-round effects,” Mr. Medalla said, adding that inflation will likely peak in October or November this year.

Upside risks may continue to weigh on inflation outlook due to rising global commodity prices, a shortage in local fish supply, a spike in sugar prices, and pending petitions for transport fare hikes, he added.

A weaker global economic recovery and the resurgence of local coronavirus disease 2019 (COVID-19) cases are still the downside risks to the outlook, Mr. Medalla said.

“The favorable growth outcome in the first half of the year also gives the BSP the flexibility to act against inflation pressures while allowing domestic demand to sustain its recovery momentum amid prevailing headwinds,” he added. 

The Philippine economy expanded by 7.4% in the second quarter, bringing first-half growth to 7.8%.

The Development Budget Coordination Committee (DBCC) is targeting 6.5-7.5% gross domestic product (GDP) growth this year.

While the economy is robust enough to absorb policy rate hikes, Mr. Medalla said the government may not be able to achieve the 6.5-7.5% growth targets this year.

“It’s impossible for tightening not to reduce economic growth. However, it’s still possible that even with possibly additional measures, respectable growth is still possible,” he said.

“Achieving a target-consistent path of inflation is of great importance to us. In our view, respectable growth is still possible, whether that is lower or within the DBCC target of 6.5 to 7.5% is important to us. But at the same time, to us, price stability is the primary concern,” he added.   

Meanwhile, BSP Director Dennis D. Lapid of the Department of Economic Research said higher-than-expected inflation, jeepney fare hikes, and peso depreciation were taken into consideration in monetary policy action and revisions in inflation projections.

“These factors were partly offset by lower assumptions for both global crude oil and non-oil prices as well as slower domestic and global economic growth and also the impact of BSP’s recent policy interest rate adjustments which were carried out in May, June, and July,” Mr. Lapid added.

Inflation rose by 6.4% year on year in July, the fastest in nearly four years and exceeded the central bank’s 2-4% target band for a fourth straight month. The average inflation rate in the first seven months is 4.7%, still below the BSP’s full-year forecast of 5.4%.

The implementation of a daily minimum wage hike in 14 regions and an increase in fares for public utility jeepneys in Metro Manila, Central Luzon, Calabarzon and Mimaropa in June also added to inflationary pressures.   

The peso also continued to weaken against the dollar on Thursday amid the US Federal Reserve’s hawkish signals. The local unit closed at P55.888 per dollar on Thursday, shedding 2.80 centavos from its P55.86 finish on Wednesday, based on Bankers Association of the Philippines data.

MORE HIKES SOON
Mr. Medalla said further policy adjustments will depend on the data and the US Federal Reserve’s next moves.

“The BSP reassures the public of its commitment and readiness to take all necessary actions to steer inflation towards a target-consistent path over the medium term in keeping with its price and financial stability mandates,” Mr. Medalla said.

Economists expect the BSP to maintain a hawkish stance.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa in an e-mail said the central bank would likely carry out 25-bp increases at each of the remaining policy meetings this year.

“ING expects inflation to accelerate further with inflation likely peaking at 6.8% by October,” Mr. Mapa said.

For MUFG Bank analyst Sophia Ng, inflation may peak at 5.5% this year.

“The BSP’s commitment to ‘take all actions’ to curb inflation suggests more rate hikes are likely down the line with another 75 bps of rate hikes likely by yearend,” Ms. Ng said.

ANZ Research Chief Economist Sanjay Mathur and economist Debalika Sarkar said they expect the BSP to continue raising rates at least until the early part of the first quarter of 2023, “with the magnitude of hikes contingent on the evolving external landscape and inflation trajectory.”

“On balance, we forecast 25-bp hike in each policy meeting until February 2023. The evolution of inflation, balance of payments and extent of further tightening by the US Federal Reserve will potentially reshape our assessment,” the ANZ Research economists said.

Makoto Tsuchiya, Oxford Economics assistant economist, said he expects another 25-bp hike in the fourth quarter.

“Inflation is yet to reach its peak of around 7.7% in Q4, and we see the peso remaining weak in 2022 entering into 2023, keeping import prices elevated. As such, the BSP still has more work to do. But thereafter we expect the Bank to take an extended pause,” he said.

“Given the negative output gap and unstable recovery, we only see one more hike in this cycle.”

Philippines plans 1st retail bond under Marcos

BW FILE PHOTO

By Diego Gabriel C. Robles

THE BUREAU of the Treasury (BTr) is planning to raise at least P30 billion in the first retail Treasury bond (RTB) issue under the Marcos administration.

The BTr will sell at least P30 billion worth of RTBs due in 2028, and allow existing holders to exchange the debt due this year and in 2023 for the new bonds, according to a source.

The offer period for the peso-denominated debt is from Aug. 23 to Sept. 2, with a tenor of 5.5 years. The BTr is expected to hold a price-setting auction on Aug. 23.

National Treasurer Rosalia V. de Leon confirmed with Reuters that planning for the RTB issue was ongoing, but did not give details.

The bonds are targeted for small investors who want low-risk, higher-yielding savings instruments backed by the government.

A teaser posted on the BTr’s Facebook page hinted that bonds will be sold in denominations of at least P5,000 and in multiples of P5,000 thereafter.

This will be the second RTB offer this year.

In March, the government raised P457.8 billion from the issuance of five-year RTBs, which have a coupon rate of 4.875%.

Meanwhile, there was no announcement of an offering for Treasury bonds (T-bonds) for Aug. 23 (Tuesday) on the Treasury website.

Yields of the five-year bonds at the secondary market stood at 5.4240% on Wednesday, based on data from the PHP Bloomberg Valuation Service Reference Rates posted on the Philippine Dealing System’s website.

Asked about the timing of the RTB offer, a trader said there is a need for the government to borrow.

“Timing wise, it is better now because yields dropped from the peak. They want to lock in borrowing so long as there is strong demand as evidenced by previous auctions,” the trader said in a Viber message.

In August so far, all T-bond auctions fully awarded the debt papers at lower rates.

The BTr raised a total of P105 billion from T-bonds in three separate auctions in the month, with all three leading to the opening up of the BTr’s tap facility to raise an additional P35 billion.

“This offering has all the potential to be huge, in terms of the amount to be issued. We’ve had very strong FXTN (Fixed Rate Treasury Notes) issuances as of late so I won’t be surprised if this will be a record-breaking RTB offering in terms of investor interest,” a second trader said in a Viber message.

“Government borrowing, while it ballooned in this time of the pandemic, continues to be judicious as they raised funds while rates are low,” the second trader added.

On Tuesday, Ms. De Leon told the Senate Committee on Ways and Means that the borrowing requirement was reduced to P2.2 trillion this year from P2.5 trillion last year, with 75% of the debt expected to be sourced domestically.

The government seeks to bring down the debt-to-gross domestic product (GDP) ratio to 61.8% by the end of 2022, from 62.1% at the end of the second quarter. The ratio is expected to drop to 61.3% by next year and 52.5% by 2028.

The first trader said that the yield of the RTB should be between 5.875% and 5.75% for the RTB to be attractive, citing July inflation.

In July, inflation accelerated by 6.4%, bringing the average to 4.7% as food and transport prices continued to rise.

Metro Manila’s retail prices accelerate in April

PHILIPPINE STAR/ MICHAEL VARCAS

By Ana Olivia A. Tirona, Researcher

METRO MANILA’S retail price of goods in April grew at its fastest pace in three and a half years, preliminary data from the Philippine Statistics Authority (PSA) showed.

The PSA on Thursday reported that the general retail price index (GRPI) rose by 3.5% in April, faster than the 2.7% posted in March and the year-earlier rate of 2.2%. It was the fourth straight month of retail price growth in Metro Manila.

“The April print shows inflation creeping into consumption, with the uptick in the retail prices of goods and services getting more pronounced as inflation began to bite,” Security Bank Corp. Chief Economist Robert Dan J. Roces said in a Viber message.

General retail price index in the National Capital Region

The April GRPI was the fastest growth in three and a half years or since the 3.6% expansion seen in October 2018.

For the January to April period, retail prices grew by an average of 2.5% versus 1.8% in the same period last year.

Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said in a Viber message that the economic reopening “combined with a surge in transport cost resulting from the armed conflict in Eastern Europe” drove the GRPI print higher in April.

Metro Manila has been under the most lenient pandemic Alert Level 1 since March 1, allowing many businesses to resume full operations. 

However, Russia’s invasion of Ukraine in late February drove oil prices to over $100 per barrel amid concerns over supply.

April inflation rose by 4.9% from 4% in March and 4.1% in April a year ago, due to the rising prices of fuel and food.

PSA data showed higher prices of food and fuel contributed to the faster GRPI in April.

Prices of food rose by 3.6% in April, from 2.5% in March, while mineral fuels, lubricants, and related materials surged by 33.5% from 26.4%.

Likewise, higher annual increments were seen in beverages and tobacco (3.8% in April from 2.9% in March); manufactured goods classified chiefly by materials (2.6% from 2%); chemicals, including animal and vegetable oils and fats (2.1% from 1.7); machinery and transport equipment (0.7% from 0.5%); and miscellaneous manufactured articles (0.8% from 0.7%).

On the other hand, prices of crude materials, inedible except fuels contracted by 0.5% in April after prices were unchanged in March.

Mr. Roces said the GRPI reflects the household final consumption expenditure seen in the second-quarter gross domestic product (GDP), which meant “households possibly scrimping on nonessentials.”

Preliminary data showed the economy expanded by 7.4% in the second quarter, slower than the 8.2% in the previous quarter and the 12.1% expansion in the same quarter in 2021.

Household final consumption expenditure, which accounted for three-fourths of the GDP, grew by 8.6% annually in the second quarter, slower than 10.1% in the first quarter but faster than 7.3% last year.

Both economists expect the uptick in headline inflation to further drive GRPI growth in the coming months.

“More increases are expected through July as global inflation headwinds, the weaker peso, approval of transport fare and wage hikes likely added to additional retail price pressures,” Mr. Neri said.

Retailers back move to legalize ukay-ukay importation

A worker carries a bale of used clothing (ukay-ukay) along Bangbang Street in Sta. Cruz, Manila, Aug. 17, 2022. — PHILIPPINE STAR/EDD GUMBAN

By Revin Mikhael D. Ochave, Reporter

LOCAL RETAILERS are backing a senator’s proposal to legalize the commercial importation of secondhand garments, also known as “ukay-ukay,” as this would mean sellers will now have to pay taxes.

“If they will legalize it, it should be a welcome development because that means they will be paying the same taxes that (legal) retailers also pay,” Philippine Retailers Association (PRA) President Rosemarie B. Ong told BusinessWorld in a mobile phone message.

Ms. Ong said retailers are not worried about the competition from ukay-ukay sellers, once their operations are legalized.

“We are not worried as long as it (ukay-ukay) is legalized,” Ms. Ong said.

Alice T. Liu, chief retail officer of The Penshoppe Group (GOLDEN ABC, Inc.), said in a statement sent to BusinessWorld that they are supportive of the proposal to legalize commercial imports of used clothing.

“Legitimization will benefit the economy because any legitimate business should rightfully pay correct taxes with no exceptions,” Ms. Liu said.   

Aside from used clothing, Ms. Liu said legitimate retailers are also concerned about counterfeit products now flooding the market.

“A concern that is equally pressing for us is the influx of counterfeit goods that have flooded the market along with the secondhand garments,” Ms. Liu said.  “As such, measures to strengthen the protection of intellectual property rights should also be considered in the discussion of this proposal.”

Earlier this week, Senator Rafael T. Tulfo suggested the legalization of commercial importation of ukay-ukay, noting that the Bureau of Customs (BoC) has been unable to stop smuggling of used clothing.

“I think it’s about time, if the BoC can’t control the importation of ukay-ukay, we make them pay taxes so that the government can earn from this in some way,” Mr. Tulfo has said.

Republic Act No. 4653, which was enacted in 1966, prohibits the commercial importation of used clothing to “safeguard the health of the people and maintain the dignity of the nation.”   

ACEN secures AU$100-M loan for RE projects

ACEN Corp., through its subsidiary in Australia, has secured a 100-million Australian dollar green long-term revolving loan from DBS Bank Ltd. through common provisions and facility agreements.

“The initial green loan facility with DBS will help advance our fund-raising capacity of over AU$600 million in Australia to develop and construct existing and additional pipeline of renewable energy (RE) projects in Australia,” said Anton Rohner, chief executive of ACEN Australia Pty. Ltd. in a media release on Thursday.

ACEN said that the loan will provide capital financing for its eligible green assets in Australia as part of the company’s strategic aspiration to grow its renewables capacity to 20 gigawatts by 2030.

Patrice Clausse, chief operating officer of ACEN’s international business, said: “ACEN is leading the charge with the decarbonization opportunities across Asia and the Pacific. We aim to make a significant impact in this space, and create long-term value for our stakeholders.”

DBS is the arranger and sustainability advisor for the revolving loan facility and will also provide capital financing for ACEN’s eligible green assets in Australia.

Kelvin Wong, managing director and deputy head of energy, renewables, and infrastructure at DBS, said that as the leading bank in sustainable financing, the group is “excited to support ACEN’s continued efforts” to expand its renewables infrastructure to accelerate the transition of the energy industry towards a climate-aligned future.

“Having pledged to achieve net zero financed emissions by 2050, DBS is also committed in supporting like-minded clients like ACEN in the long haul to enhance Asia’s renewable energy mix to realize a low-carbon economy,” he added.

Separately on Thursday, ACEN told the stock exchange that it had executed on Aug. 18 a common provisions agreement and a facility agreement with ACEN Australia and the Australian branch of DBS for the revolving loan.

Ayala-led ACEN said it is the guarantor to ACEN Australia for the loan.

ACEN aspires to be the largest listed renewables platform in Southeast Asia by 2030. It announced in 2021 its commitment to achieving net-zero greenhouse gas emissions by 2050.

The company has around 4,000 megawatts of attributable capacity in the Philippines, Vietnam, Indonesia, India, and Australia. Renewables account for 87% of that capacity.

On Thursday, shares in ACEN gained P0.05 to close higher by 0.58% at P8.65 apiece. — Ashley Erika O. Jose

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