Philippines places 63^rd in M&A Attractiveness Index

August 12, 2022 | 12:02 am

The Philippines slipped a spot to 63rd out of 148 countries in the 2021 edition of the M&A Attractiveness Index by Mergers and Acquisitions Research Center (MARC) at the Bayes Business School in London. The index ranks countries on their capacity to attract and sustain mergers and acquisitions activity based on six factor groups.* The Philippines placed the ﬁfth least attractive in M&A activity in the East and Southeast Asia region with an overall score of 48%, ahead only of Brunei (72nd overall), Mongolia (86th), Cambodia (107th), and Laos (110th). It received the highest ranked score in the economic and ﬁnancial factor group with 73%, while scoring lowest in regulatory and political factor with 30%.

PNOC role expansion sought amid oil price increases

August 12, 2022 | 12:02 am

To mitigate the effect of oil price increases, a director at state-led Philippine National Oil Co. (PNOC) on Thursday proposed an expansion of the business role of the company and its subsidiary by entering into consignment marketing and business agreements with a privately owned refinery.

Rex V. Tantiangco, board director in PNOC and former chairman of the Energy Regulatory Board (ERB), said through Viber that he suggested the re-entry of PNOC into oil marketing and trading as an alternative proposal instead of reviving the oil price stabilization fund (OPSF).

The ERB is the precursor of the present Energy Regulatory Commission.

According to Mr. Tantiangco, due to the volatility of crude oil and refined petroleum products, the government should adopt measures that would stabilize the prices of petroleum products to lessen the impact to end users, particularly, on the transport sector.

His suggestion includes PNOC selling petroleum products to participants in the transport sector such as jeepneys, buses, taxis, and technology- and app-based transport network vehicle service, at a calibrated amount of cash rebates without indulging in predatory pricing.

The privilege should be limited to franchise holders and should be properly coordinated with the Department of Transportation and the Land Transportation Franchising and Regulatory Board, he said.

Mr. Tantiangco said that such adjustable cash rebates can only be availed by the drivers upon gas purchase.

He said the scheme will not only result in less red tape but can also minimize corruption since “it would benefit only the daily gas consumptions of the legitimate PUV (public utility vehicle) drivers directly, not passing through channels.”

“Some oil companies are already making use of cash rebates, discounts, or sales incentives to their card holders’ customers,” he said.

Mr. Tantiangco also said that the importation of crude oil should be a government-to-government arrangement, especially during global oil crises.

To ensure steady inflow and delivery of crude oil, the government should arrange a one-year supply agreement with crude oil producers and suppliers, he said.

“PNOC shall be the industry price leader. As an independent oil player, PNOC will be engaged in marketing petroleum products, thus, will have the data/info of [the products’] price components. It will definitely sell its products at reasonable prices,” he said.

He also proposed that through a tolling agreement with a local refinery, PNOC should process the imported crude oil into finished petroleum products for a “tolling fee.”

“Incorporated in the agreement is the swapping of products: PNOC to swap the unneeded finished products with needed products, or sell to local dealers/bulk users the surplus products at prevailing international price postings,” Mr. Tantiangco added. — Ashley Erika O. Jose

BSP, PNP arrest currency counterfeiter, seize $100 in fake dollar bills

August 12, 2022 | 12:02 am

AUTHORITIES from the Bangko Sentral ng Pilipinas (BSP) and the Philippine National Police (PNP) arrested a Cameroonian national for selling forged US dollar banknotes in July.

The BSP said in a statement that a certain Fonki Gregory Abueh, 47, a resident of Makati, was arrested in an entrapment operation in Taguig.

The Quezon City Police Anti-Cybercrime Team and the BSP’s Payments and Currency Investigation Group also seized 14 pieces of fake $100 bills from the suspect.

Mr. Abueh was charged before the Taguig City Prosecutor’s Office for alleged violations of the Revised Penal Code, including the illegal possession and forging of false treasury or banknotes.

He was also charged with alleged estafa under the Cybercrime Prevention Act of 2012, or Republic Act No. 10175, for swindling an individual in a financial investment online scam.

Earlier this year, the BSP and the National Bureau of Investigation also confiscated 161 counterfeit Philippine currency banknotes and 78 fake foreign banknotes during enforcement operations.

According to the BSP, four suspects were arrested last January during law enforcement operations in Pampanga and Tarlac.

The four suspects were also charged with alleged illegal possession and use of false treasury or banknotes under the Revised Penal Code, the BSP said.

The central bank asked the public to report information on currency counterfeiting to law enforcement authorities.

People who fake Philippine currency may be imprisoned for up to 20 years or pay a fine up to P2 million.

Meanwhile, the BSP on Tuesday cautioned the public to be vigilant against fraud over unsolicited e-mails or text messages, with links that redirect users to suspicious websites.

It advised the public to cautiously examine messages and to refrain from clicking links even if these appear to be from banks, e-money issuers or known companies or brands.

The BSP reminded the public to protect their personal information and account details. — KBT

Entertainment News (08/12/22)

August 12, 2022 | 12:01 am

Nikki Nava photo by Belle Dinglasa — Nikki Nava — PHOTO BY BELLE DINGLASA

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Nikki Nava releases new single

YEARS since the release of the albums Secrets and Emergency Room, independent singer-songwriter Nikki Nava returns with her newest single, “Ephemeral.” It offers an upbeat vibe consisting of delicate vocals and an electric guitar accompaniment. The song is a recollection of our short-lived connections that finishes with a hopeful wish to meet again whenever fate permits. “Ephemeral” will be available on Spotify, Apple Music, Deezer, YouTube Music, and other digital music streaming platforms. Nikki Nava is an independent singer-songwriter, visual artist, and graphic designer from Manila.

Fiji Blue’s Asia Tour 2022 coming to PHL

FIJI Blue will bring their Asia Tour 2022 to the Samsung Hall in SM Aura Premier in Taguig on Nov. 17. The self-described “sad boy chill house” duo composed of Valentin Fritz and Trevor Dering, are behind the hits “It Takes Two,” “Butterflies,” “Waves,” “Affection,” and “Outside.” Presented by Wilbros Live, tickets to Fiji Blue concert will go on sale on Aug. 19 at 10 a.m. at SMTickets.com and all SM Ticket outlets nationwide.

Morissette releases Bisaya single

SINGER Morissette Amon has taken to social media to promote the release of her new Bisaya single, “Undangon Ta Ni.” “In a way, this song is still connected to my Signature EP of original music, because one of the things that make me unique is that I am a Cebuana,” Ms. Amon said of the song. “Undangon Ta Ni,” which loosely translates to “Let’s Stop This,” released under Underdog Music, was composed and produced by Cebu-based songwriters Relden Campanilla, Carlisle Tabanera, and Ferdinand Aragon, along with Amon and her husband Dave Lamar. Morissette Amon, who is celebrating her 12^th anniversary in show business, got her big break after finishing in the Top 8 of ABS-CBN’s The Voice Philippines: Season 1. “Undangon Ta Ni” can be heard on all music streaming platforms.

Four Kings and a Queen concert at Newport

NEWPORT World Resorts hosts the royal affair that is the Four Kings and a Queen concert, featuring Hajji Alejandro, Marco Sison, Rey Valera, and Nonoy Zuñiga, together with Pops Fernandez. The concert will be held at the Newport Performing Theater Arts on Aug. 26 and 27, 8 p.m. Tickets are now available at all TicketWorld and SM Tickets outlets, for prices ranging from P1,000 to P7,000. For inquiries, call Ticketworld (8891-9999) or SM Tickets (8470-2222).

Julie Anne San Jose, Gary V collaborate on single

JULIE Anne San Jose and Gary Valenciano collaborate on a pop ballad, “Di Ka Akin.” San Jose’s writing and vocals impressed Valenciano, which is why he agreed to this collaboration. For the OPM icon, an artist like Ms. San Jose does not come very often. “Di Ka Akin” is available on all digital streaming platforms.

Spanish Film Festival returns on site

THE 21^ST EDITION of Película-Spanish Film Festival will return to face-to-face screenings on Oct. 5 to 16. After two years of having a virtual festival, Película will screen around 20 movies in three venues in Metro-Manila — Shangri-La Plaza, Cine Adarna at UP Diliman, and the Instituto Cervantes Intramuros branch. The festival returns to the big screen, on a first-come, first-served free admission basis. The Festival will also host face-to-face online screenings in Malaysia and Australia. In the Philippines, the Festival will open on Oct. 5 with El buen patrón (Fernando León de Aranoa, 2021), a comedy starring Javier Bardem. Other comedies in the line-up include El test (Dani de la Orden, 2022), Con quién viajas (Martín Cuervo, 2021). The official entries also include documentaries such as A las mujeres de España. María Lejárraga (Laura Hojman, 2022), dramas such as Maixabel (Icíar Bollaín, 2021) and El olvido que seremos (Fernando Trueba, 2020), and thrillers like La hija (Manuel Martín Cuenca, 2021). Película will also feature Latin American films such as the Colombian documentary Jinetes del Paraíso (Talia Osorio Cardona, 2020), the Panamenian comedy Algo azul (Mariel García Spooner, 2021), and Competencia oficial, a Spanish-Argentinean comedy directed in 2021 by Gastón Duprat and Mariano Cohn, and featuring Penélope Cruz, Antonio Banderas, and Oscar Martínez. There will be a special selection of classic Spanish films: Esa pareja feliz (Juan Antonio Bardem, Luis García Berlanga, 1951), Muerte de un ciclista (Juan Antonio Bardem, 1953), Mamá cumple cien años (Carlos Saura, 1979) and El sur (Víctor Erice, 1983). Película 2022 is an initiative of Instituto Cervantes in Manila and Sydney, the Embassies of Spain in the Philippines, Malaysia, and Australia, and the AECID, in collaboration with the Film Development Council of the Philippines, ICAA, the Embassies of Colombia and Panama in the Philippines, the UP Film Institute, the University of the Philippines and Intramuros Administration. All the movies are in Spanish (or their original language) with English subtitles. For updates visit the Facebook page of Instituto Cervantes: www.facebook.com/InstitutoCervantesManila.

Philippines’ 50 richest 2022

August 12, 2022 | 12:01 am

THE SY SIBLINGS remained the richest in the Philippines, despite a $4-billion drop in their net worth in 2022, according to Forbes Asia. Read the full story.

Basic etiquette for resigning employees

August 12, 2022 | 12:01 am

I’m the human resource (HR) manager of a medium-sized corporation. For the past two years, we’ve experienced resignations by employees who simply leave without permission or advance notice. It appears that people are no longer worried about their reputations among employers. They’ve not even bothered to ask for clearances. What is the expected etiquette for resigning employees? — Lazy Dog

It’s an entirely different ballgame for HR managers and their organizations during the Great Resignation, which set in during the pandemic. Some workers prefer to work from home. Others think a daily commute is not worth the hassle given what they are paid.

Covid-19 showed us that labor and management are speaking two different languages. The only thing they have in common is adherence to government health and safety protocols in the workplace. This may explain why some workers are behaving unprofessionally in the hiring and resignation process, driving employers crazy.

Whatever the reason, team leaders, unit supervisors and department managers must be proactive in identifying workers who may no longer be happy with their jobs. This is done via casual dialogue to feel the pulse of the workplace.

Of course, there’s no guarantee that workers can be persuaded or forced to stay on the job. Management can only do so much, but nothing can be done to prevent a resignation, except to create an environment where resigning employees bother follow simple etiquette to keep their relations with past employers professional.

BASIC ETIQUETTE
Many workers’ lives may differ significantly from the conditions they find in the workplace. That’s not to say employers maintain ideal conditions at work. Many employers that I’ve interacted with violate labor standards, paying their workers a pittance or failing to contribute to their social insurance accounts.

Bad employers often impose unreasonable rules on their workers, raising the resignation rate. I often advise workers in these situations to maintain a positive attitude towards their employers.

In other words, don’t burn bridges. Take the high road. Try doing the following:

One, follow the law by giving at least a 30-days’ notice. This is the minimum requirement under the law. Put your resignation in writing and request the HR department and the boss’s secretary to acknowledge receipt of the letter. If you don’t want to give formal notice, you can only do it legally for cause, such as being treated inhumanely and unfairly.

Two, file your written resignation in person. Don’t do it via e-mail, text message or phone call. That’s because you want to personally witness the boss’s body language. Arrange a meeting with your boss at his or her convenience, preferably towards the close of office hours. Express your plan to resign in clear but respectful language. If needed, explain the reason for your resignation, but do it verbally.

Three, show gratitude for the opportunity. Think of all the support that you got from the organization and the chance to learn. It could result in a positive recommendation to a prospective employer or other institutions doing background checks. Even if you’re bitter about the work relationship, don’t show it. Once you’ve decided to resign, there’s nothing you can change.

Four, offer to train your replacement, if needed. You may even assist the employer in looking for a suitable person who can do your job on a temporary basis. Arrange for a proper turnover of all company property, tools, equipment, records, including your company ID. This should help fast-track the issuance of a company clearance and release of your terminal pay. Whenever possible, be available all the time in tying up the loose ends in your work relationship.

Last, bid goodbye to your department colleagues. Do this after notifying your direct boss about your resignation. If you’re resigning, keep it a secret until a formal letter is received by your boss and the HR department. This is to maintain a respectful attitude towards your boss who won’t want to hear it from the grapevine. If this happens, it could derail your resignation.

In conclusion, whatever you do with your planned resignation and the reasons behind it, do it in a way that allows a potential return to your employer, if the right opportunity comes along. The world is full of surprises. You would not want to leave an organization in a way that endangers your future and long-term plans.

Have a chat with Rey Elbo via Facebook, LinkedIn or Twitter or send your workplace questions to elbonomics@gmail.com or via https://reyelbo.com

Fed officials say more rate hikes needed despite slowing inflation

August 12, 2022 | 12:01 am

SLOWING US inflation may have opened the door for the US Federal Reserve to temper the pace of coming interest rate hikes, but policy makers left no doubt they will continue to tighten monetary policy until price pressures are fully broken.

A US Labor department report Wednesday showing consumer prices didn’t rise at all in July compared with June was just one step in what policy makers said would be a long process, with a red-hot job market and suddenly buoyant equity prices suggesting the economy needs more of the cooling that would come from higher borrowing costs.

The Fed is “far, far away from declaring victory” on inflation, Minneapolis Federal Reserve Bank President Neel Kashkari said at the Aspen Ideas Conference, despite the “welcome” news in the consumer price index (CPI) report.

Mr. Kashkari said he hasn’t “seen anything that changes” the need to raise the Fed’s policy rate to 3.9% by yearend and to 4.4% by the end of 2023.

The rate is currently in the 2.25%-2.5% range.

To be sure, Kashkari is the Fed’s most hawkish member; most of his 18 colleagues believe a little less policy tightening may be enough to do the trick to bring prices under better control.

San Francisco Fed President Mary Daly, in an interview with the Financial Times, also warned it is far too early for the US central bank to “declare victory” in its fight against inflation.

However, Ms. Daly said that a half-percentage point rate rise was her “baseline” but did not rule out a third consecutive 0.75% point rate rise at the central bank’s next policy meeting in September, according to the report.

Calling inflation “unacceptably” high, Chicago Fed President Charles Evans said he believes the Fed will likely need to lift its policy rate to 3.25%-3.5% this year and to 3.75%-4% by the end of next year, in line with what US Fed Chair Jerome H. Powell signaled after the Fed’s latest meeting in July.

Still, he said, the CPI report marks the first “positive” reading on inflation since the Fed began raising interest rates in March in increasing increments — a quarter of a percentage point to start, then a half a point, and then three-quarters-of-a-percentage point in both June and July.

After Wednesday’s CPI report, traders of futures tied to the Fed’s benchmark interest rate pared bets on a third straight 75-basis-point hike at its Sept. 20-21 policy meeting, and now see a half-point increase as the more likely option.

Equity markets took a similar cue on hopes for a less aggressive central bank, with the S&P 500 rising 2.1%.

Financial markets are currently pricing a top fed funds rate of 3.75% by yearend, with rate cuts to follow next year, presumably as policy makers move to counter economic weakness.

Mr. Kashkari called that scenario unrealistic, and said Fed policy makers are “united” in their determination to bring inflation down to the Fed’s 2% target. The risk of recession “will not deter me” from advocating for what’s needed to do so, he said.

DATA ON TAP
For the Fed to scale back, fresh inflation data will need to confirm the idea that price increases are slowing.

The consumer price index rose 8.5% in July from a year earlier, Wednesday’s report showed. While that marked a drop from June’s 9.1% rate, prices are still rising at levels not seen since the 1970s and early 1980s. Food prices in July were up 11% from the year before, devastating for lower income families in particular.

For the moment, however, analysts focused on the fact that, after months in which accelerating price pressures pushed Fed policy makers to tighten credit conditions faster than at any time since the 1980s, inflation data finally surprised in the other direction.

“The Fed needs a lot more evidence (of slowing inflation)… but this is a good start,” said Karim Basta, chief economist with III Capital Management.

Data on August consumer inflation will be released on Sept. 13, the week before the Fed meets, and given recent trends in energy and some other prices the report “should also be friendly to the disinflation path and should make a 50 basis point hike the preferred option.”

Still, the Fed’s battle with high inflation is far from over.

The core consumer price index – which strips out volatile gas and food prices and is seen as a better predictor of future inflation – rose 0.3% from June and 5.9% from a year earlier.

The Fed targets 2% inflation based on a different index that is rising at a lower, but still high, rate of more than 6%.

An alternative measure of consumer prices compiled by the Cleveland Fed, known as the Median Consumer Price Index and considered a good view of the breadth of prices pressures in the economy, rose 6.3% on an annual basis in July, compared to 6% in June.

“Overall, prices remain uncomfortably high,” wrote High Frequency Economics’ Rubeela Farooqi, who stuck with her call for a 75-basis point rate hike next month. “Coupled with strength in job growth and wages, the data support the case for another aggressive rate hike in September.” — Reuters

Phinma income declines to P407M

August 12, 2022 | 12:01 am

Phinma Corp. registered an attributable net income of P406.83 million in the first half, lower by 7.8% than a year ago, amid higher costs caused by supply chain difficulties.

The company’s topline grew by 10.4% to P8.63 billion while its costs rose by 18.2% to P1.04 billion.

In a disclosure on Thursday, the company said the increase in cost was offset by the improvement in the performance of Phinma Property Holdings Corp.

Phinma said that its investment in Song Lam Cement Joint Stock Corp. also helped with a gain of P95.21 million.

Phinma Education Holdings, Inc. also had a decline in its first-half net income to P96.9 million, which the company attributed to higher costs and one-time charges.

Its consolidated revenue amounted to P1.37 billion in the first half, lower by 6.8% than last year.

The Construction Materials Group (CMG): Union Galvasteel Corp., Philcement Corp., and PHINMA Solar Corp., despite booking a 13% growth in its consolidated revenues to P7.07 billion in the first half, registered a lower net income versus last year to P443.28 million.

“Net income of CMG for the period was lower at P443.28 million due to temporarily higher costs amidst global supply chain issues,” the company said.

Another subsidiary, Asian Plaza, Inc., posted a higher net income of P28.21 million in the first half on real property sales.

On the stock market on Thursday, shares in Phinma inched up by P0.06 or 0.31% to P9.26 apiece. — Justine Irish DP. Tabile

How PSEi member stocks performed — August 11, 2022

August 12, 2022 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Thursday, August 11, 2022.

PSEi surges, tracks Wall St. on slower US inflation

August 11, 2022 | 9:00 pm

PHILIPPINE SHARES surged on Thursday, tracking Wall Street as a slower consumer inflation reading in the world’s largest economy caused US stocks to rally.

The 30-member Philippine Stock Exchange index (PSEi) soared by 208.84 points or 3.22% to close at 6,680.68 on Thursday, while the broader all shares index increased by 89.06 points or 2.57% to 3,550.57.

“Shares on the Philippine Stock Exchange rose, tracking overnight gains on Wall Street, amid bets the central bank will be less hawkish as the US Federal Reserve potentially slows the pace of rate hikes,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message.

“PSEi surged earlier on the back of rising expectations of slower rate hikes after US CPI (consumer price index) print came in below expectations last night at 8.5%,” AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message.

“Looking ahead, we expect this rally to continue in the very near term as some profit taking is likely to be offset by sustained foreign net inflows. However, market could be choppy again ahead of BSP’s (Bangko Sentral ng Pilipinas) meeting next week on Thursday,” Mr. Temporal said.

Wall Street surged on Wednesday as US CPI slowed more than expected in July, raising hopes that the Fed’s upcoming rate hikes would be less aggressive.

The Dow Jones Industrial Average rose 535.10 points or 1.63% to 33,309.51; the S&P 500 gained 87.77 points or 2.13% to 4,210.24; and the Nasdaq Composite climbed 360.88 points or 2.89% to 12,854.81.

The US CPI was flat last month, US Labor department data showed. It rose by a less-than-expected 8.5% annually after a 9.1% rise in June.

The Fed has hiked key rates by 225 basis points (bp) since March, including back-to-back 75-bp increases in June and July.

Back home, all sectoral indices ended in the green on Thursday. Property jumped by 130.31 points or 4.46% to 3,049.10; holding firms rose by 200.94 points or 3.24% to 6,392.02; services climbed by 54.12 points or 3.20% to 1,744.68; industrials went up by 241.50 oints or 2.50% to 9,876.45; mining and oil gained 242.88 points or 2.13% to close at 11,598.54; and financials added 26.45 points or 1.75% to finish Thursday’s session at 1,537.95.

Advancers outnumbered decliners, 144 versus 51, while 43 names closed unchanged.

Value turnover rose to P8.63 billion on Thursday with 917.29 million shares changing hands from P6.34 billion with 843.4 million issues seen the previous trading day.

Foreigners turned buyers anew, logging P951.54 million in net purchases on Thursday from the P119.38 million in net selling seen the previous trading day.

AP Securities’ Mr. Temporal placed the PSEi’s support at 6,500 and resistance at the 6,800 area, while Globalinks Securities and Stocks’ Mr. Arce put support at 6,300 and resistance at 6,800. — J.I.D. Tabile

Fitch Solutions raises 2022 PHL GDP forecast to 6.6%

August 11, 2022 | 8:11 pm

FITCH SOLUTIONS Country Risk and Industry Research said it raised its 2022 gross domestic product (GDP) growth forecast for the Philippines to 6.6%, citing its better-than-expected economic performance in the first half.

The full-year outlook factors in an expected growth slowdown in the second half due to headwinds in the global economy, Fitch Solutions said.

In a note on Thursday, Fitch Solutions said the new outlook represents an upgrade from the 6.1% estimate it issued in May. Its new forecast falls within the government’s 6.5% to 7.5% full-year target.

“The slowdown in growth (during the second quarter) was in line with our expectations, although the pace of deceleration — from 8.2% in Q122 to 7.4% in Q222 — was more modest than we had predicted,” Fitch Solutions said.

GDP growth in the second quarter slowed significantly from the 12.1% posted a year earlier, according to preliminary data from the Philippine Statistics Authority (PSA).

In the six months to June, GDP growth averaged 7.8%.

“Overall, GDP growth in H122 benefited from the reopening of borders in February and election-related spending. Moreover, a relatively accommodative central bank has also supported consumption and investment to some extent,” Fitch Solutions said.

The Philippines reopened its borders for foreign visitors on Feb. 10. As coronavirus infections declined, Metro Manila and many other areas have been placed under the most permissive quarantine level since March.

The Philippines conducted national elections on May 9, with President Ferdinand R. Marcos, Jr. and Vice-President Sara Duterte-Carpio winning by a landslide.

“These tailwinds helped offset external headwinds stemming from elevated energy prices, a slowdown in the world economy, and tightening global monetary conditions. However, we believe that these tailwinds will continue to fade over the coming months, while growth headwinds intensify, leading to slower growth in H222,” Fitch said.

Preliminary data from the PSA show the consumer price index rising 6.4% year on year in July, driven by food and transport costs.

July headline inflation was the highest in nearly four years, or since the 6.9% posted in October 2018.

In the year to date, inflation averaged 4.7%, against the 4% from a year earlier. This was also lower than the 5% forecast of the central bank. Inflation remains persistently above the 2-4% target band set by economic managers for the year.

“Against the backdrop of the ongoing Russia-Ukraine war and adverse weather conditions in a number of food-producing countries in the region, energy and food prices will continue to be a significant source of upward price pressure in the Philippines,” Fitch Solutions said.

The Bangko Sentral ng Pilipinas (BSP) has hiked benchmark rates by a total of 125 basis points (bps) so far this year, including the outsized 75-bp increase in an off-cycle move on July 14, to temper rising inflation expectations.

BSP Governor Felipe M. Medalla has signaled an increase of 25 bps or 50 bps at the monetary board’s Aug. 18 meeting and said further increases would be data dependent.

“We expect more monetary tightening by the BSP and central banks in developed markets over the coming months which will weigh on investment, and to an extent, private consumption,” Fitch Solutions said.

Fitch Solutions also expects the central bank toll hike rates by an additional 100 bps in its next meetings, bringing the policy rate to 4.25% by year-end.

The IBON Foundation, Inc. think tank called for more determined government action, with the growth slowdown in the second quarter reflecting a weakening recovery.

“Reopening the economy is not enough because too many Filipinos are still jobless, earn too little, and are forced to lower their consumption by inflation,” IBON said in a statement on Wednesday.

“Despite the economy reopening, the household spending of millions of Filipinos is repressed by high unemployment, (and the) pervasive poor quality … of work,” the group added.

According to preliminary estimates by the PSA in its Labor Force Survey, unemployment was 6% in June, unchanged from May.

However, the total number of unemployed hit 2.990 million in June, 62,000 higher compared to May.

According to IBON Foundation, inflationary pressures may drive unemployment higher in the coming months.

“This could worsen unless the new administration ensures that the 2023 national budget provides a substantial stimulus such as with significantly larger funds for social protection and support for small businesses and production sectors,” IBON said. — Keisha B. Ta-asan

Efforts to make fertilizer more affordable ongoing — DTI

August 11, 2022 | 8:11 pm

THE Trade department is in discussions to help bring down fertilizer prices for farmers, an official said on Thursday.

“Regarding initiatives related to making fertilizer more affordable, discussions are ongoing,” Trade Undersecretary Carol P. Sanchez told reporters via Viber after being asked to comment.

Discussions on providing more affordable fertilizer for local farmers are ongoing as part of government efforts to boost local food production and supply, an official from the Department of Trade and Industry (DTI) said on Thursday.

Ms. Sanchez declined to elaborate, saying that “it would be premature for Trade Secretary Alfredo E. Pascual to comment further at this time.”

The Office of the President, through its official Facebook posted on Wednesday that President Ferdinand R. Marcos, Jr. met with DTI officials to discuss plans to access cheaper fertilizer.

Asked to comment, Samahang Industriya ng Agrikultura Executive Director Jayson H. Cainglet said that the current retail price of fertilizer has surged to P2,250 per 50-kilogram bag from P850 per bag last year.

“We met the President last week, together with the fertilizer industry. We laud efforts by the President in procuring cheaper fertilizer imports; either through government-to-government (G2G) or directly requesting importers to reduce prices,” Mr. Cainglet said via mobile phone.

Mr. Marcos has said the government will pursue fertilizer deals with China, Indonesia, Malaysia, Russia, and the United Arab Emirates on a G2G basis.

Federation of Free Farmers National Manager Raul Q. Montemayor said in a Viber message that the government should consider working on distribution plans while hammering out the G2G arrangements.

“I am not sure if the DTI is the right agency to handle fertilizer imports. Also, you need a lot of logistics to handle fertilizers. If price control is the objective, the local government units would be the better implementers,” Mr. Montemayor said. — Revin Mikhael D. Ochave