Philippines’ total debt slows in Q2 2022

September 20, 2022 | 12:01 am

The Philippines’ total debt amounted to $429.7 billion in the second quarter of the year, about 2.5% lower than $440.8 billion a year ago, latest data from the Global Debt Monitor report of the Institute of International Finance showed. This infographic shows the sectoral breakdown of the country’s total debt as share of gross domestic product (GDP). During the second quarter, slowdowns were seen in household debt as well as borrowings by the nonfinancial corporates and the ﬁnancial sector, tempering the increase in Philippine government debt, which rose to 58.3% of the economy from 55.2% a year ago.

Shipping firms told to adopt environment-friendly measures

September 20, 2022 | 12:01 am

THE Philippines Ports Authority (PPA) appealed to shipping companies to use cleaner fuel and adopt environment-friendly measures.

“The greener shipping program is a call to shipping lines to adopt more environment-friendly fuel, like liquefied natural gas, and measures to protect our seas,” Francisquiel O. Mancile, PPA officer-in-charge general manager, said during the hybrid press conference for the 2022 National Maritime Week on Monday.

Department of Transportation Undersecretary Elmer Francisco U. Sarmiento also said that the agency would push for the sustainable preservation of ocean sources to boost economic progress.

“Key words here are sustainable and preserve. Whatever programs we undertake, let us include the wise use of our ocean resources. Let us always be conscious of the health of the ocean ecosystem,” he said.

Mr. Sarmiento said the country can protect and preserve ocean resources while also elevating the country’s maritime transportation system.

“We can aspire for economic progress and global competitiveness without destroying the oceans,” he said.

Meanwhile, Armando A. Balilo, spokesperson of the Philippine Coast Guard, said that the agency would advocate banning single-use plastics among its personnel.

“We will impose penalties [on] our personnel who will disobey the directive. This move is to also encourage the public, especially shipping companies, and all stakeholders to do the same,” Mr. Balilo said. — Ashley Erika O. Jose

How PSEi member stocks performed — September 19, 2022

September 20, 2022 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Monday, September 19, 2022.

Local shares fall on selling pressure, rate hike bets

September 19, 2022 | 9:00 pm

PHILIPPINE STOCKS fell on Monday on selling pressure ahead of the monetary policy meetings of the US Federal Reserve and the Bangko Sentral ng Pilipinas (BSP) this week.

The bellwether Philippine Stock Exchange index (PSEi) went down by 111.35 points or 1.7% to close at 6,437.42 on Monday, while the broader all shares index went down by 48.41 points or 1.39% to 3,426.

“The market is anticipating the rate increase by the Fed this week — that’s why the market is tanking,” Mercantile Securities Corp. Head Trader Jeff Radley C. See said in a Viber message.

“The PSEi fell 1.7% to end the day at 6,437.42 driven by selling pressure in the market ahead of the interest rate decisions by the BSP and US Federal Reserve this week, which are both expected to continue their monetary policy tightening stance to combat inflation,” Unicapital Securities, Inc. Equity Research Analyst Ralph Jonathan B. Fausto said in a Viber message.

“We can also attribute the decline today to some negative spillover from the extended sell-off in the US’ major indices last Friday, with FedEx Corp. withdrawing its full-year guidance this year and unveiling significant cost-cutting initiatives due to softening global demand,” Mr. Fausto added.

The Fed is meeting to review policy on Sept. 20-21, where it is expected to fire off another jumbo-sized hike as authorities seek to bring down inflation. It has raised rates by 225 basis points (bps) since March, including two 75-bp hikes in June and July.

The BSP will hold its own policy meeting on Sept. 22, with analysts betting on a 50-bp increase. It has hiked borrowing costs by 175 bps since May to rein in rising prices.

Meanwhile, US stocks fell to a two-month low on Friday as hints of a global slowdown caused investors to flee to safer assets,

The Dow Jones Industrial Average fell by 139.40 points or 0.45% to 30,822.42; the S&P 500 lost 28.02 points or 0.72% to close at 3,873.33; and the Nasdaq Composite dropped by 103.95 points or 0.9% to 11,448.40.

FedEx withdrew the financial forecasts it issued three months ago, saying the slowdown in global demand accelerated at the end of August and is likely to worsen.

Back home, all sectoral indices closed lower on Monday. Holding firms lost 169.92 points or 2.67% to close at 6,194.11; services went down by 25.49 points or 1.50% to 1,669.60; property dropped by 42.68 points or 1.46% to 2,875.33; industrials decreased by 97.64 points or 1.02% to 9,387.51; financials shaved off 10.87 points or 0.68% to end at 1,579.97; and mining and oil inched down by 65.85 points or 0.58% to close at 11,211.66.

Decliners outnumbered advancers, 132 to 51, while 51 names closed unchanged.

Value turnover declined to P4.98 billion on Monday with 660.59 million shares changing hands from the P15.09 billion with 1.18 billion issues traded on Friday.

Unicapital Securities’ Mr. Fausto placed the PSEi’s support at 6,300 to 6,400 and resistance at the 6,700 to 6,800 levels, while Mercantile Securities’ Mr. See put support at 6,160 to 6,400 and resistance at 6,600 to 6,800. — Justine Irish D. Tabile

Peso strengthens on balance of payments data, lower oil prices

September 19, 2022 | 9:00 pm

THE PESO strengthened versus the dollar on Monday, amid the narrower balance of payments (BoP) deficit in August and lower oil prices.

The local unit closed at P57.40 against the greenback on Monday, stronger by three centavos from its P57.43 finish on Friday, data from the Bankers Association of the Philippines showed.

The peso opened Monday’s session at P57.34 per dollar. Its intraday low was at P57.43 while its strongest showing was at P57.325 against the greenback.

Dollars traded went down to $508.4 million on Monday from $900.66 million on Friday.

The peso strengthened on Monday after the latest BoP deficit data that eased month on month, said Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.

The country’s BoP position remained in a deficit for a fifth straight month in August, mainly due to the National Government’s foreign debt payments, the central bank said on Monday.

Data released by the Bangko Sentral ng Pilipinas (BSP) on Monday showed the BoP deficit hit $572 million in August, a turnaround from the $1-billion surplus in the same month last year.

However, this is the lowest deficit posted in four months or since $415 million in April. The deficit is also lower than the $1.819-billion gap in July.

Mr. Ricafort also attributed the peso’s strength to lower global oil prices.

“The peso appreciated, tracking the decline in global oil prices amid increasing global recession worries,” a said in an e-mail.

Reuters reported that global oil prices fell by more than 1% on Monday, pressured by expectations of weaker global demand and by the dollar strength ahead of a possible large interest rate increase from the US Federal Reserve.

Brent crude for November delivery fell $1.17, or 1.3%, to $90.18 by 0822 GMT. US West Texas Intermediate for October dropped $1.14, or 1.3%, to $83.97.

Oil has soared in 2022, with Brent coming close to its all-time high of $147 in March after Russia’s invasion of Ukraine exacerbated supply concerns. Worries about weaker economic growth and demand have since pushed prices lower.

“The local currency might weaken due to expectations of a substantial US policy rate hike from the Federal Reserve,” the trader said.

To control stubborn inflation, central banks globally are widely expected to increase borrowing costs this week. The US Federal Reserve might also deliver a full percentage point at its Sept. 20-21 meeting.

Back home, the BSP is likely to continue its rate hike cycle on Thursday, with several analysts forecasting a 50-basis-point (bp) increase.

A BusinessWorld poll last week showed 14 out of 15 analysts expect the Monetary Board to raise its benchmark interest rate at its Sept. 22 meeting.

Eleven analysts believe the central bank will deliver a hike of 50 bps, while two analysts see a 25-bp increase. One analyst expects a 75-bp hike, while another sees the BSP keeping rates unchanged.

For Tuesday, Mr. Ricafort gave a forecast range of P57.25 to P57.45 while the trader expects the peso to move around the P57.30 to P57.50 levels versus the dollar. — Keisha B. Ta-asan with Reuters

Senators seek POGO ban amid kidnapping spate

September 19, 2022 | 8:44 pm

online-gambling-casino — STOCK PHOTO | Image by Aidan Howe from Unsplash

By Alyssa Nicole O. Tan, Reporter

THE PHILIPPINES should ban offshore gaming operators in the country because it has spun a fresh spate of kidnappings involving mostly Chinese nationals, a senator said on Monday.

“The continued operation of Philippine offshore gamine operators (POGO) in the country is dangerous,” Senator Aquilino Martin D. Pimentel III said in a statement. “It is akin to harboring would-be criminals and gangsters that can eventually cause massive disruption of peace and order in the country.”

Calls to ban POGOs, which proliferated during the term of ex-President Rodrigo R. Duterte, snowballed amid a spate of abductions victimizing mostly Chinese nationals.

Many of the kidnappings being probed by local police involved foreign nationals working in this sector, Interior Secretary Benjamin “Benhur” Abalos said last week.

President Ferdinand R. Marcos, Jr. had not made up his mind about the proposed ban, his sister Senator María Imelda “Imee” R. Marcos said at the weekend.

She told DZBB radio on Sunday she had told the president that since authorities could not regulate POGOs, it might be better to shut them down.

“The amount that we earn from that is very little. My guess is that the income obtained under the table is bigger than what is given to the government,” she added.

The senator said the income from POGOs, most of which are Chinese companies that operate online gambling overseas, might not be worth the trouble.

A law taxing these operators took effect in October last year. The government collected P1.22 billion from licensees, service providers and employees at the end of last year.

Tax collections from POGOs hit P2.38 billion in 2018, P6.4 billion in 2019 and P7.18 billion in 2020, according to the Department of Finance.

“We must weigh the social costs of POGOs vis a vis the meager income they give to the national coffers of only P3 billion a year,” Senate President Juan Miguel F. Zubiri told reporters in a Viber message.

“Plus, they do not employ Filipinos so there is no added benefit to our local labor force,” he said. “The question is, is it worth it?”

The Senate would probably tackle this when the blue ribbon committee comes out with a report on its investigation of rising kidnapping incidents in the country, Mr. Zubiri said.

“It has become clear from the most recent Senate hearing that the social costs of POGOs are starting to outweigh whatever economic gains that this particularly pernicious industry is bringing in the country,” said Senator Mary Grace S. Poe-Llamanzares, who earlier filed a resolution to probe the abductions.

She noted that in the past, issues with POGOs have advanced to kidnapping, prostitution, torture and even murder from just tax evasion, mass migration and the real estate bubble.

“It’s like POGO as a mother vice gives birth to a whole slew of other vices and crimes,” she said.

The Philippines has become a cradle for Chinese gangsters after Vietnam and Cambodia banned Chinese-backed online gambling and overseas casinos, she added, citing local police.

“We should launch a full-on probe on the social costs of POGOs and evaluate whether the country can still accommodate their operations and, if yes, at what cost,” she added.

Mr. Pimentel said the ban should be a legislative priority. “Given what we’re seeing now as numerous ill effects of POGOs, Congress has the moral duty to ban POGOs. We should act now. It will be a bipartisan measure.”

“We can’t afford to dilly-dally on banning POGOs when the nation’s moral fiber and peace and order are on the line,” he added. “You are the majority. Get your act together. If you say ‘Stop POGOs,’ we will support you.”

Philippines told to explore South China Sea for oil

September 19, 2022 | 8:42 pm

By Matthew Carl L. Montecillo

THE NATIONAL Government should proceed with the exploration of the South China Sea for oil and gas, a congressman said on Monday.

“Let’s do it, let’s look for gas and oil in the West Philippine Sea, especially in Recto Bank off Palawan, which reportedly holds natural gas deposits that are bigger than those in Malampaya, which by the way is drying up in a few years,” Cagayan de Oro Rep. Rufus B Rodriguez said in a statement.

He said the government should not think of what China would say and “be guided only by the national interest.”

Indonesia and Malaysia conducted oil and natural gas surveys in their continental shelves despite Chinese objections, said Renato C. de Castro, an International Studies professor.

“They have political will,” he said in a Viber message. “The previous Duterte administration did not have the political will to conduct surveys in our own exclusive economic zones despite our victory in the 2016 arbitral ruling and our Mutual Defense Treaty with the US.”

“This is the better way to go given that we’ve had a bad experience with our softer approach in dealing with China on the joint exploration of the West Philippine Sea,” says Arjan P. Aguirre, a political science professor at the Ateneo De Manila University, referring to areas of the sea within the country’s exclusive economic zone.

“This will also force the government to really be serious in upgrading our capabilities to do gas exploration and extraction,” he added.

Robin Michael U. Garcia, who teaches political economy at the University of Asia and the Pacific, said the Philippines should expect a strong response from China if it proceeds with the exploration.

“The new administration has to define its China policy and our foreign policy towards great power competition in general,” he said.

Mr. Rodriguez said Chinese companies that want to participate in the exploration could do so as contractors.

Former President Rodrigo R. Duterte terminated oil and gas talks with China after failing to reach a deal after years of negotiation.

Comelec disqualifies Albay governor from elections

September 19, 2022 | 8:42 pm

Palacio_Del_Gobernador_(Intramuros,_Manila;_07-22-2020)_Comelec — THE COMELEC office in Intramuros, Manila — PATRICK ROQUE

THE COMMISSION on Elections (Comelec) has disqualified Albay Governor Noel E. Rosal from this year’s elections for approving cash aid to tricycle drivers in April, when there was a spending ban.

In a 12-page resolution on Sept. 19, the Comelec First Division said Mr. Rosal, who was the incumbent Mayor of Legazpi, Albay, violated the law when he authorized the program.

He had argued that the payout was only a continuation of a social assistance program of Legazpi City.

Comelec noted that the cash aid is considered a social welfare and development activity prohibited by law.

“Nowhere in the law does it state that a continuing social welfare and development project is excluded from the prohibition,” according to the ruling written by Election Commissioner Aimee P. Ferolino.

Mr. Rosal, who won this year’s gubernatorial race, did not immediately reply to a Facebook message seeking comment. — John Victor D. Ordoñez

SIM card bill OK’d on 3^rd reading

September 19, 2022 | 8:41 pm

CONGRESSMEN on Monday approved on third reading a bill that will require the registration of subscriber identity modules (SIM) cards to prevent mobile phone scams.

Voting 250-6 with one abstention, the chamber approved House Bill 14, or the proposed Subscriber Identity Module Card Registration Act.

Under the bill, telecommunication companies are tasked with the safekeeping of information gathered during the registration process. No data may be divulged except in compliance with laws, upon a court order or with the written consent of the subscriber. 

Any breach of confidentiality will be punishable with imprisonment or a fine of as much as P1 million. 

HB 14 is the exact version approved during the 18^th Congress. 

Former President Rodrigo R. Duterte vetoed the bill in April after senators included social media accounts in the coverage.

The Senate approved a counterpart bill on second reading on Monday. — Matthew Carl L. Montecillo and ANOT

Taiwan wants Philippines to back its UN inclusion 

September 19, 2022 | 8:40 pm

TAIWAN wants the Philippines to back its bid for inclusion in global discussions including those in the United Nations (UN), as world leaders gather in the US for an annual meeting.

In a statement, Taipei Economic and Cultural Office in the Philippines Representative Peiyung Hsu said Taiwan “sincerely hopes” that its closest neighbor “could continue to voice their support for Taiwan’s meaningful participation in the UN system.”

“Taiwan and the Philippines enjoy long-time cordial people-to-people relations,” he said. “As close neighbors and maritime nations, Taiwan and the Philippines uphold the values of freedom, democracy and the rules-based international order.”

Mr. Hsu asked the UN to reconsider the “One China” policy, saying it is misleading because Taiwan is governed separately. He said Taiwan could only be represented in the global arena by their democratically elected government.

The pro-Beijing policy prevents Taiwan from participating in world conventions, including those led by the UN. 

“By deliberately conflating its ‘One China’ principle with the United Nations General Assembly Resolution 2758 — the resolution that determined who represents China in the organization some 50 years ago — Beijing is misleading the world by spreading the fallacy that Taiwan is part of the People’s Republic of China,” he added. — Kyle Aristophere T. Atienza

SPED funding without papers rejected

September 19, 2022 | 8:39 pm

PHILIPPINE budget planners on Monday said it rejected funding for a learning program for persons with special needs because the Education department failed to document it.

While DepEd had proposed to retain the P523-million funding for the special education program (SPED), it did not provide sufficient documents to support it, the Budget department said in a statement.

Education officials earlier denied claims that it had deliberately excluded funding for SPED.

The Budget department said that as of Jun. 30, the SPED program under the 2022 budget had an obligation rate of 1.13%, or only P6.35 million out of a P560.2-million allocation.

“This funding provision will still be valid until December 31, 2023.”

The agency noted that during the budget season, items may be realigned and modified by an agency to fund a program in dire need of resources.

It also cited a P1.216-billion surplus for the Programs, Activities, Projects for elementary and junior high schools under DepEd’s Maintenance and Other Operating Expenses.

“We deemed that the program support or additional allocation for the smooth implementation of the SPED may already be accommodated within the same program, and that a separate budget for the purpose may no longer be necessary.”

Earlier in the day, DepEd said its proposed P523-million fund for SPED was not considered in the spending plan for 2023. 

DepEd, which is headed by Vice-President Sara Duterte-Carpio, has been under fire after it requested a P150-million confidential fund that was not scrutinized at a recent House of Representatives hearing.

The Alliance of Concerned Teachers has been urging DepEd to realign the confidential fund and use it to improve education quality. 

Budget and policy analysts have said the multimillion confidential fund goes against the austerity theme of the Marcos administration. — Kyle Aristophere T. Atienza

Marcos sends sister to queen’s funeral

September 19, 2022 | 8:38 pm

London-Queen Elizabeth II — PEOPLE gather to pay respects to Britain’s Queen Elizabeth II following her death, in London, Britain, Sept. 15. — REUTERS

PRESIDENTIAL sister Maria Irene Celestina Marcos-Araneta was set to represent the Philippines during the state funeral of Queen Elizabeth II, Britain’s longest-reigning monarch.

She was accompanied by her spouse, Gregorio María Araneta III, Press Secretary Trixie Cruz-Angeles said in a statement on Monday. 

“Mrs. Marcos-Araneta and her spouse will be attending the events for the state funeral beginning with the lying-in-state of the queen taking place today,” she said. 

President Ferdinand R. Marcos, Jr. is in New York to attend the 17^th United Nations General Assembly. 

World leaders and foreign dignitaries were expected to attend Monday’s funeral for the queen, who died on Sept. 8.

“She exemplified to the world a true monarch’s great dignity, commitment to duty, and devotion to all those in her realm,” Mr. Marcos said after her death.

Ms. Marcos-Araneta is the youngest among the three children of the late dictator Ferdinand E. Marcos and his wife Imedla. — Kyle Aristophere T. Atienza