THE VERSAILLES event garden and tent at Novotel Manila in Quezon City on Aug. 6 was packed with fans who quietly waited for their favorite Korean actor to arrive. One fan, a woman in her mid-60s, took five days off from work and flew all the way from Miami to Manila to see her favorite Korean actor.
The object of their attention was K-pop singer and actor Cha Eun Woo, who was in town last weekend for the “2022 Just One 10 Minute: Starry Caravan” fan meet at the Smart Araneta Coliseum that evening. Mr. Cha had last held a fan meeting in the Philippines in 2019.
In January this year, Smart Communications, in partnership with streaming service Viu, held a virtual fan meeting for Mr. Cha through the Smart Hallyu Hangouts where subscribers get to spend an afternoon with their Korean idols online.
The 25-year-old member of the K-pop group Astro is best known for his lead roles in the TV series My ID is Gangnam Beauty (2018), Rookie Historian Goo Hae-Ryung (2019), and True Beauty (2020).
When Mr. Cha stepped on stage at the press conference/fan meet, the fans who had been quietly waiting jumped up from their seats and started screaming in excitement.
“I miss you,” Mr. Cha greeted the audience when he came onstage, “How about you?” He was answered by a room full of screaming fans.
He added that he felt excited to be back and appreciated the warm welcome from fans at the airport the evening before.
He went on to answer questions from the audience, sometimes in English, sometimes in Korean which were then translated into English by program host Sam Oh.
He said that despite the numerous projects he has accomplished, “I think I’m the same.”
“What I would like to do is better the things I am doing already, whether that’s singing or acting or all the other things I do. I’d rather get better at those things than move on to something new,” Mr. Cha added in Korean,
Mr. Cha plays a Catholic priest in his next acting project, a K-drama titled Island. The series is slated to premiere in 2023.
The fan meeting later that evening had performances, games, and reenactments of scenes from Mr. Cha’s K-dramas. The evening concluded with a surprise video message from fans, and a performance of the True Beauty theme song, “Love So Fine.”
Mr. Cha’s K-dramas My ID is Gangnam Beauty and True Beauty, and his variety shows, All the Butlers and Handsome Tigers, are available to stream on Viu.— MAPS
BANKS left the rediscount facility of the central bank untouched in July as there was ample liquidity in the financial system.
The Bangko Sentral ng Pilipinas (BSP) said in a statement on Monday that its peso rediscount window was untapped anew last month following the P7.52-billion loan taken out by a universal bank in June that put borrowings for the first six months at P11.6 billion.
The Exporters’ Dollar and Yen Rediscount Facility (EDYRF) was also untouched in July. The last time an availment was made under the EDYRF was a dollar rediscounting loan in 2016.
In 2021, banks only borrowed from the facility in June, July, and September. These peso rediscount loans amounted to P6.12 million.
The BSP’s rediscount window gives banks access to additional money supply by posting their collectibles from clients as collateral. In turn, banks may use the cash — denominated in peso, dollar or yen — to extend more loans to their corporate or retail clients and service unexpected withdrawals.
“Excess liquidity in the financial system picked up in July 2022 and continued, thereby reducing the need for banks to tap the BSP rediscounting facility,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
“Banks also have other options to get funding, such as through the interbank market as well as through the capital markets, instead of BSP rediscounting facilities,” Mr. Ricafort said.
M3, which is considered as the broadest measure of liquidity in an economy, grew by 6.9% to P15.4 trillion in June year on year.
Meanwhile, preliminary data from central bank showed outstanding loans of big banks expanded by 12% to P9.9 trillion in June from P8.8 trillion in the same month of 2021.
This was the fastest loan growth seen in more than three years or since the 12.4% in April 2019.
The easing of nonperforming loans (NPL) of banks also reduced the need for lenders to tap the BSP rediscounting facility, Mr. Ricafort added.
“The FIST (Financial Institutions Strategic Transfer) Law also gives banks greater flexibility to dispose nonperforming loans and nonperforming assets (NPAs) that also lessens the demand for BSP rediscounting,” he said.
The banking industry’s gross NPL ratio went down to 3.75% of their total loan portfolio in May from 4.49% a year ago. It is also lower than the 3.93% seen in April. The May NPL ratio is the lowest since 3.72% in January 2021.
AUGUST RATES For August, the applicable rate for peso rediscount loans will be at 4.1469% for those maturing in 90 days and at 4.5438% for those falling due in 91-180 days.
Meanwhile, dollar borrowings will be priced at 5.18519% (1-90 days), 5.58209% (91-180 days) and 6.37589% (181-360 days).
Yen-dominated borrowings will have an interest rate of 2.3845% (1-90 days), 2.7814% (91-180 days) and 3.5752% (181-360 days). — Keisha B. Ta-asan
WE CONTINUE to experience challenging times, with a multitude of headwinds facing the world today.
Impacting the local markets and creating fear and uncertainty are: the current worldwide resurgence in coronavirus disease 2019 (COVID-19) cases due to the Omicron variant BA.5, the spread of the monkeypox virus, the global currency and debt crisis, the Chinese real estate mortgage boycott, supply chain problems, logistics difficulties and increasing costs of shipping, global inflation and increasing interest rates, and the food and security issues arising from the Ukraine-Russia war.
And yet, we believe that the Philippine economy might be well cushioned from all these negative global headwinds because of several factors in the country’s favor.
DAVID LEECHIU, CEO of Leechiu Property Consultants
REMITTANCES Overseas Filipino Remittances remain steady, and in fact, are increasing. Remittances have historically increased during times of crisis. With the renewed demand for Philippine nurses and oilfield workers, we see sustained remittances. Overseas Filipinos’ remittances grew for the second month in a row in April 2022, up by 3.8%to reach $2.67 billion and will likely by year-end 2022 be higher than 2021’s figure. This steady source of dollar earnings will continue to support Filipino families.
OUTSOURCING Outsourcing services, which include the business process outsourcing (BPO)industry, have seen higher demand as a result of rising inflation and cost pressures in Western countries. There has been continued growth in the Information Technology and Business Process Management (IT-BPM) sector, especially in the countryside.
The IT-BPM sector is the country’s largest employer, accounting for 1.4 million jobs. The IT & Business Process Association of the Philippines said 120,000 jobs were created in the IT-BPM sector in 2021 alone. This is the second highest annual number of jobs created since the inception of the BPO industry in the country.
INFRASTRUCTURE Ongoing projects under the Build, Build, Build program will not be suspended, and thus government spending will proceed, President Ferdinand R. Marcos, Jr. said during his State of the Nation Address (SONA). The continuity of the infrastructure program will boost employment, while improved connectivity will boost productivity.
In Metro Manila alone, there will be 126.1 kilometers of roads, bridges, and railways to be completed from 2023 onwards. These developments will drive logistics and development growth throughout the Philippines while increasing property values and improving local government income.
TOURISM Tourism will likely be the largest industry of the Philippines in 10 years, or by2032. The opening of seven new airport projects at the end of 2021 added 16.7 million in annual passenger capacity. With projects in the pipeline, annual passenger capacity is expected to surge to 386 million passengers from the current 55 million.
Mr. Marcos’ statement that tourism continues to offer an abundance of opportunities has also boosted the confidence of industry investors and operators alike.
The Philippines is likely to benefit from tourism, given the current trend of foreign travelers seeking cheaper destinations amid rising global inflation.
NO LOCKDOWNS Mr. Marcos’ declaration that the government would no longer impose lockdowns, which the economy could ill afford, is expected to have the widest impact.
Overall mall foot traffic is currently at 75% of pre-pandemic levels, while weekend mall traffic is now at 100%. The President’s assurance of no lockdowns, alongside the return of employees to offices, will likely bring back food and retail sales to pre-COVID levels.
POPULARITY The President’s unrivalled popularity gives him the political capital to push forward government projects. The stable transition from the Duterte administration to the Marcos government and the business-like approach of the latter bode well for the business community and the economy in general. The relatively stable and quiet political environment puts the Philippines in a better position to face the global economic uncertainties, and to encourage continued dollar inflows and improved consumption.
IMPACT ON REAL ESTATE The office sector’s growth momentum is likely to speed up in the second half of the year with the implementation of the no-lockdown directive and a resolution to the work-from-home arrangements with the Philippine Economic Zone Authority.
Current live requirements for transactions in various stages of negotiation has been very encouraging and has so far been the highest since the start of the pandemic at 451,000 square meters (sq.m.) as of the second quarter of 2022. IT-BPMs accounted for 212,000 sq.m. of that total.
The government’s perceived determination to return to business as usual is expected to drive the Philippine office market back to 2016’s pre-POGO (Philippine Offshore Gaming Operators) and pre-pandemic state. Office demand in 2016 was then at 647,000 sq.m. making the Philippines one of the major office markets in the world. As of the second quarter of 2022, actual office absorption was 255,000 sq.m., the highest since the start of the pandemic.
For the residential condominium sector, the unhampered mobility and continuous operations will prompt higher activity levels. The take-up in the second quarter of 2022 was at 9,030 units or already 70% of pre-COVID levels, thanks to stretched downpayments for amortization and other concessions offered by developers.
Moreover, higher construction costs and market uncertainties will prompt developers to offer even better payment terms to buyers in an effort to reduce inventory levels and to pave the way for new launches. Investors and buyers would be wise to grab this opportunity to lock down the price today and to pay interest-free downpayment over a period of up to 4 to 5 years. They will be highly rewarded in the recovery a few years from now.
In his SONA, Mr. Marcos said he aimed to spend 5% of gross domestic product annually on improving roads and transportation systems in key cities, a continuation of the previous administration’s Build, Build, Build initiative. These infrastructure projects have increased accessibility from Metro Manila to Southern Mega Manila. Land values have consequently been rising in neighboring communities with residential lots in Cavite and Laguna increasing by 7%-15% annually. Continuation of these infrastructure projects will further prompt residential developers to launch more projects.
REAL ESTATE AS HEDGE TO INFLATION Investment strategies to keep up with rising inflation rates are key to mitigating diminishing buying power. Real estate has always been considered one of the safest assets for capital preservation in times of economic uncertainty. Amid the string of crises over the past decades, investments in residential lots in the high-end gated subdivisions in Metro Manila have proven to be excellent stores of value.
More attractively, investments in residential lots South of Metro Manila have exhibited unparalleled growth. For residential condominiums, capturing the price today will be beneficial when inflation and rising financing costs due to interest rate hikes push construction costs and thus selling prices upwards.
David Leechiu is the chief executive officer of Leechiu Property Consultants.
ABS-CBN Corp.’s subsidiary Sky Cable Corp. (SKY) announced on Monday that it will be working with major telecommunications service providers and local government units (LGUs) to address cable cutting and theft, which disrupt service connections.
Executives from SKY, Globe Telecom, Inc., PLDT, Inc. and Smart Communications, Inc. “heeded the call for unity in protecting Filipino households from these illegal acts that disrupt their service connection and affect their day-to-day activities during these unprecedented times,” the ABS-CBN subsidiary said in an e-mailed statement.
The companies signed a joint manifesto in support of the initiative. Streamtech, Metroworks ICT, Eastern Communications, Radius Telecoms, and the Philippine Cable and Telecommunications Association were also represented.
“Illegal cable cutting is a disservice to our customers. It leads to disruptions in cable TV and internet service. Together with our customers, we have been victimized by perpetrators who steal and sell the copper wires for profit or recklessly cut and damage our cable wires without regard to the disruption it causes to our internet and cable service,” the manifesto stated.
“This illegal act robs our customers of the steady internet and cable TV service they need for entertainment and access to information and disrupts connectivity required for work.”
According to SKY, this is the “first big step” in the telecommunications and cable TV industry.
“This will ensure reliable service to valued subscribers and a quicker response to such heinous acts in coordination with local authorities together with deployed special security teams.”
SKY noted that the manifesto also seeks to “hold individuals involved accountable under the rule of law, particularly with the implementation of Republic Act 10515, also known as the Cable Theft Law — with charged perpetrators either facing two to five years of imprisonment or paying hefty fines imposed by the court.”
“As of Aug. 5, SKY has reported 205 incidents of cable cutting and theft around Mega Manila, with the month of July incurring the most number of cases with 45 in total and Quezon City tallying the most number of cases spotted with 89 since January 2022,” it said.
“Four of the total cases have been filed with criminal charges by corresponding telco partners,” the company added.
In regional areas, Cebu alone has recorded 111 incidents since the start of 2022.
“Reporting such incidents to our end and the local authorities is a big help in our ‘Oplan Kontra Putol’ campaign. Not only can we respond to restore your services immediately, but your help goes a long way in preventing these certain acts in other households,” SKY’s Vice-President and Head of Strategic Relations Efren Arayata said. — Arjay L. Balinbin
TATA Balladares and other PNNI para-enforcers walk through a patch of destroyed mangrove forest
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TATA Balladares and other PNNI para-enforcers walk through a patch of destroyed mangrove forest
TATA Balladares rests on a fallen tree while searching for illegal loggers in forests of southern Palawan, Rizal, Palawan, April, 2018 — PHOTO BY KARL MALAKUNAS
Award-winning documentary premieres at Cinemalaya
THE AWARD-winning documentary feature Delikado focusing on environmental crusaders who risk their lives protecting the rainforests of Palawan will premiere on Cinemalaya 18. The 96-minute documentary directed by journalist Karl Malakunas will be screened at the Cultural Center of the Philippines (CCP) Main Theater on Aug. 13 at 3:30 p.m. It will be among the closing films of the 18th Cinemalaya Independent Film Festival. In Delikado, Mr. Malakunas, the former Manila bureau chief of Agence France Presse, shies away from the tropical paradise angle and instead shines the light on environmental defenders who are fighting to preserve their natural resources from big developers, politicians, illegal loggers and others who threaten the Philippines’ “last ecological frontier.” The film follows Robert “Bobby” Chan, lawyer and executive director of the Palawan NGO Network Inc., former El Nido mayor Nieves Rosento, and land defender Efren “Tata” Balladares. Another participant was “Kap” Ruben Arzaga, one of the volunteer leaders, who was killed in an anti-logging operation in 2017. For details, visit delikadofilm.com or https://www.facebook.com/DelikadoFilm. For advance tickets visithttps://culturalcenter.gov.ph/event/cinemalaya-18-philippine-independent-film-festival-2022.
ASEAN music fest unveils all-star multi-genre lineup
THE ASEAN Music Showcase Festival (AMS) will be holding its first in-person showcase since its founding in 2020, bringing together some of Asia’s most exciting music acts for its 2022 edition on Sept. 10 to 11 in Singapore. Each country in the ASEAN will be represented by a mix of established and emerging artists performing various music genres. The performers are: hip-hop star VannDa and fellow labelmates from Baramey Production (Cambodia); singer-songwriter Pamungkas, rapper Basboi, jazz-funk trio Mad MadMen, ambient artist Logic Lost, indie-rock soloist IQIF, electronic pop act LONE, and electronic jazz band Littlefingers (Indonesia); Cheats, alternative band SOS (formerly known as She’s Only Sixteen), rapper-producer kiyo, electro R&B act Fern., dream pop band KRNA, rapper Young Cocoa, and pop-R&B act Ace Banzuelo (Philippines); a hip hop label showcases from YUPP! artists AUTTA featuring Flower.Far, AINN, and FIZZIE; HYPE TRAIN label artists, singer-songwriter Alec Orachi from NewEchoes, and pop acts from HIGH CLOUD Entertainment’s BOOM BOOM CASH and PUN (Thailand); post-rock band Amateur Takes Control, DJ-producer Fauxe, rapper Bgourd, indie pop act Pleasantry, four-piece math rock band cues, and pop-R&B artist ffion (Singapore); electro-R&B act NYK, rock duo Jemson, “fractional math rock” quartet The Filters, city pop act Babychair (Malaysia); Thinlamphone and ZamioP (Laos); and OAK Soe Khant and Velocity (Burma) with the latter’s set available online only. Guest acts outside ASEAN will also be making appearances including Taiwanese indie act indie rock bands Huan Huan and I Mean Us, and another act to be announced later. Indian jazz-rock fusion band Jatayu will also perform. AMS will also host a virtual showcase, with the lineup to be announced soon. This year’s in-person showcase sets in Singapore and the virtual showcases will be broadcasted live via AMS’s official YouTube channel on both days. Tickets to ASEAN Music Showcase Festival 2022 are now available to purchase online via Sistic at https://www.sistic.com.sg/events/asean0922.
Kroma boosts studio production
KROMA Entertainment, Inc. is introducing its creative business units: ANIMA (formerly Globe Studios) as its film production studio, and Secret Menu as its audio-centered division. ANIMA boasts of films such as Fan Girl, Kuwaresma, Last Song Syndrome (LSS), Hintayan ng Langit, Dead Kids, and GOYO: Ang Batang Heneral, all of which leverage on being creator-focused and bold. Recently, ANIMA brought Kun Maupay Man It Panahon (Whether The Weather is Fine), which earned plum awards at the 70th FAMAS Awards on July 30. The 2022 Cinemalaya Philippines Film Festival’s opening film was ANIMA’s Sundance award-winning film Leonor Will Never Die while ANIMA Short Film Lab’s City of Flowerswill compete under the festival’s short film category. For its audio-centered division, ANIMA Podcasts, an extensive network of creators, brands, and platforms, come together to develop engaging audio series that cater to different audiences. Its current roster of regular shows include Spotify Exclusives Paano Ba ‘To?! by celebrity host Bianca Gonzalez; The Karen Davila Podcast, a limited series by news anchor Karen Davila; and The Linya-Linya Show, a comedy talk show with Ali Sangalang. Other names in its podcast roster include film director Quark Henares, writer Ramon de Veyra, host and radio DJ Riki Flores-Reyes, and YouTube K-content creator Kring Kim. Finishing off the brand’s transformation is the full-service creative video agency Secret Menu, whose content spans all aspects of video content creation. Its services include branded content solutions, commercials, live videos, event coverage, and music videos. For more information, visit KROMA Entertainment’s official website at www.kroma.ph.
Prime Video increases investment
GLOBAL video streaming service Prime Video will increase its investment for customers in the Philippines, Thailand, and Indonesia. Beginning August, customers will find a localized content slate and user experience (in local language) on Prime Video and the Prime Video app. The streaming service also revealed its first local original, Comedy Island: Philippines, and exclusive licensing deals for local, Korean, and animé titles. Prime Video offers a selection of entertainment, from original productions created by local production companies, local licensed top titles, Korean content, global Amazon Original movies and TV series, and popular Hollywood titles.
Pinoy animated short sweeps int’l film fest awards
TELLA, a short Filipino animated film about a mysterious girl and a misplaced star, has recognition in different film festivals across the globe. The 12-minute piece follows the journey of a little girl who is woken up by a fallen star that wishes to return to the night sky. The short was written and directed by Filipino animator Zachary Conlu, who honed his skills under the Animation Program of the De La Salle-College of Saint Benilde. With the help of fellow Benildeans Pauline Jan Villanueva, who composed the musical score, and Anthony Tobias, who was tapped for sound design, Conlu’s Tella has bagged numerous awards. These include Best Soundtrack at the Reale Film Festival Italy; Best Original Score at the Vesuvius International Film Fest Italy, Venezia Shorts Italy; Best Original Score, Best Animation and Audience Awards at the Feel The Reel International Film Festival UK; and Best Sound Design Award at the International Cosmopolitan Film Festival in Tokyo, Japan. Villanueva was also hailed as Best Composer at the Toronto Indie Shorts in Canada. The film was included as an Official Selection at the Tokyo Anime Award Festival, Spark Animation and Around International Barcelona, where it bagged the Best Animation. It was recognized with the Best Animation Award from Kalakari Film Festival in India. Honorable Mentions for Best Animation were granted by the Long Story Shorts International Film Festival Romania and ARFF Paris Film Festival. In local shoes, Tella was nominated for Best Director and Best Editing and won Best Sound Score and Best Sound Design titles at the CineANIMO Film Festival.
Bank of the Philippine Islands (BPI) is looking to increase its serviced self-employed micro-entrepreneur (SEME) clients to nearly a million in the next three years.
BPI aims to achieve this target by 2025 through the lender’s BanKo’s NegosyoKo solution, which will give SEMEs access to convenient ways to fund their business operations.
“The more self-employed micro-entrepreneurs are banked, the better their chances of achieving their long-term financial goals,” BPI President and CEO Jose Teodoro K. Limcaoco said in a statement on Monday.
“Banking the unbanked is the first area by which we see our involvement in the public-private collaboration. We aspire for a better Philippines, a nation that is inclusive and sustainable. This reinforces our commitment to help our country grow by providing relevant, innovative, and accessible financial solutions for all Filipinos,” Mr. Limcaoco added.
Through this, the Ayala-led bank said it will continue to support the central bank’s financial inclusion plan over the next six years.
The National Strategy for Financial Inclusion 2022 to 2028 launched by the Bangko Sentral ng Pilipinas in January targets four key outcomes: reduced disparities in financial inclusion; improved health and resilience; more financially capable and empowered consumers; and increased access to financing among micro, small and medium enterprises (MSMEs).
The BSP wants 70% of adult Filipinos to have a formal financial account by 2023.
Meanwhile, the lender’s social responsibility arm BPI Foundation has been promoting financial wellness programs to underserved MSMEs that need guidance on financial management.
“Sustained financial education and enterprise development and livelihood interventions can stimulate inclusive growth,” Mr. Limcaoco said.
INFRASTRUCTURE, SUSTAINABILITY BPI will also continue to work with the new administration in infrastructure development, Mr. Limcaoco said.
He said the lender will continue to support the government’s Build Build Build program through project financing.
The bank also remains focused on continuing its work on sustainability, as efforts toward this end are deeply entrenched in BPI’s way of doing business, Mr. Limcaoco added. BPI has disbursed nearly P75 billion for sustainability projects through its Sustainable Development Finance, it said.
BPI’s net income rose by 82.9% to P12.5 billion in the second quarter from the P6.8 billion recorded in the same period last year. This brought the lender’s net earnings for the first half of the year to P20.4 billion.
The Ayala-led lender’s shares rose by 75 centavos or 0.78% to close at P96.5 each on Monday. – K.B. Ta-asan
SHARES inched up on Monday on last-minute buying amid positive labor data and ahead of the release of the second quarter Philippine gross domestic product (GDP) report.
The bellwether Philippine Stock Exchange index (PSEi) rose by 28.74 points or 0.44% to close at 6,434.24 on Monday, while the broader all shares index increased by 16.67 points or 0.48% to 3,448.73.
“The local bourse gained by 28.74 points or +0.45% to 6,434.24 at the last minute, following the good unemployment rate this June, ahead of the release of the Philippine second-quarter GDP,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.
“Moreover, a good employment rate and strong second-quarter earnings of the companies provide optimism, especially with the Q2 GDP that is about to be released [on Tuesday],” Mr. Alviar said.
“Philippine shares traded higher as the local market awaits the release of the country’s second quarter of 2022 GDP figures on Tuesday, August 9,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
AB Capital Securities, Inc. Vice-President and Head of Research Jovis Vistan said in a Viber message said the PSEi moved sideways for most of the trading session.
“Last-minute buying pulled the index and it was led by Ayala Corp., JG Summit Holdings, Inc., PLDT, Inc. and Metropolitan Bank & Trust Co.,” Mr. Vistan added.
The preliminary results of the Philippine Statistics Authority’s (PSA) Labor Force Survey showed an unemployment rate of 6% in June, steady for the second straight month and lower than the 7.7% posted in June last year.
The PSA will release the second-quarter GDP report on Tuesday.
The majority of the sectoral indices ended in the green on Monday except for mining and oil, which went down by 201.68 points or 1.76% to close at 11,237.42, and property, which declined by 21.06 points or 0.73% to 2,836.98.
Meanwhile, financials jumped by 16.89 points or 1.11% to 1,537.51; industrials went up by 91.33 or 0.95% to 9,685.04; services climbed by 14.64 points or 0.87% to 1,688.35; and holding firms rose by 33.66 points or 0.55% to 6,105.86.
Advancers outnumbered decliners, 113 versus 55, while 55 names remained unchanged.
Value turnover went down to P7.91 billion on Monday with 591.40 million shares changing hands from P12.71 billion with 712.87 million issues seen the previous trading day.
Net foreign buying increased to P518.79 million on Monday from the P42.44 million seen the previous trading day.
“Regionally, investors will shift their focus to the key inflation report this week,” Regina Capital’s Mr. Limlingan said, referring to the July US consumer price index report set to be released on Wednesday.
He placed the PSEi’s support at 6,380 and resistance at 6,500, while AB Capital Securities’ Mr. Vistan put support at 6,300 and resistance at 6,530. — J.I.D. Tabile
THE PESO ended weaker against the dollar on Monday as the country’s reserves continued to decline and on expectations of more monetary tightening by the US Federal Reserve.
The local unit closed at P55.55 versus the dollar on Monday, losing 35 centavos from its P55.20 finish on Friday, data from the Bankers Association of the Philippines’ website showed.
The peso opened Monday’s session sharply weaker at P55.50 against the dollar. Its weakest point was at P55.72, while its intraday best was at P55.45 versus the greenback.
Dollars exchanged went down to $886.97 million on Monday from $1.22 billion on Friday.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the peso’s depreciation to the decline in the country’s gross international reserves (GIR) fell below the $100-billion level for the first time since August 2020.
Data from the Bangko Sentral ng Pilipinas (BSP) showed GIR stood at $98.83 billion as of end-July, 2% lower than the $100.85 billion level as of end-June.
Higher inflation and record high outstanding national debt also affected sentiment, Mr. Ricafort said.
Headline inflation stood at a near four-year high of 6.4% in July, from 6.1% in June and 3.7% a year ago.
Meanwhile, the government’s outstanding debt rose to a record-high P12.79 trillion at the end of June, beating the previous high of P12.76 trillion in April.
The peso was also weaker as stronger US jobs data supported a further Fed hike of 50 or 75 basis points (bp) in their next policy meeting, Mr. Ricafort added.
“The peso weakened amid heightened bets of a 75-bp rate hike by the US Federal Reserve in September following the strong US labor reports for July 2022. The local currency might rebound tomorrow from expectations of an upbeat Philippine GDP (gross domestic product) report,” a trader said. The Philippine GDP report is set to be released on Tuesday.
Fed Chair Jerome H. Powell said last month the US central bank may consider another “unusually large” rate hike at their Sept. 20-21 policy meeting as inflation in the world’s largest economy remains at a multi-decade high.
The Fed raised interest rates by 75 bps for a second straight meeting in July. It has hiked borrowing costs by a total of 225 bps since March.
For Tuesday, Mr. Ricafort gave a forecast range of P55.40 to P55.60 per dollar, while the trader said the peso could move from P55.45 to P55.65. — D.G.C. Robles
DAILY coronavirus infections in the Philippines rose by 13% in the past week from a week earlier, according to the Department of Health (DoH).
In a bulletin, the agency said 27,331 more Filipinos got infected on Aug. 1 to 7, or a daily average of 3,904 cases. Of the new cases, 76 were severe and critical cases.
DoH verified 80 more deaths in the past week, 32 of which occurred from July 25 to Aug. 7.
It said 624 of 2,514 intensive care unit (ICU) beds had been used as of Aug. 7, while 6,648 of 21,548 non-ICU beds were occupied. There were 772 severe and critical admissions.
Almost 72 million Filipinos have been fully vaccinated against the coronavirus, while more than 16.6 million have received booster shots, DoH said.
Meanwhile, the OCTA Research Group said the infection wave spurred by more contagious Omicron subvariants could last as long as five months.
“Our current wave is already longer than we expected,” OCTA fellow Fredegusto P. David told a televised news briefing. “Initially, we expected a two-month wave due to Omicron BA4 and BA5.”
He said the wave had not yet reached its peak. “It [could] last up to four or five months.” “It’s taking longer.”
The infection wave experienced by the Philippines now is probably being prolonged by waning immunity among vaccinated Filipinos, Mr. David said.
Despite the prolonged wave, the infection rate in the capital region has fallen to 8% from 14%, Mr. David said.
“Our growth rate is now less than 10%,” he said. “It’s still possible that we will see a peak soon. It’s not guaranteed because as we have seen, our [infection] wave has been prolonged,” he said in mixed English and Filipino.
“It’s a slight concern that we are not seeing a slowdown yet,” he separately told CNN Philippines. “We might see more than 5,000 cases this week or early next week.”
Majority or 85% of coronavirus samples were of the Omicron BA.5 subvariant, the Philippine Genome Center told the same briefing. The country had detected 3,107 Omicron BA.5 cases as of Friday, health authorities said.
“In the past month alone, BA.5 was the predominant sample or variant,” Genome Center Director Cynthia Saloma said.
The sublineage of the predominant Omicron subvariant in the country is mostly BA.5.2, while the ones in the US and Europe are BA.5.1, she said, adding that they were watching for signs of further mutation in BA.5.
Health authorities have also detected two BA.2.75 cases, 174 BA.2.12.1 cases, and 104 BA.4 cases, DoH said.
There was no evidence yet that the BA.2.75 subvariant would cause another infection surge in the country, DoH technical advisory group member Edsel Salvana said.
“There is a preliminary study that there’s a chance of it being more transmissible, though this has not been confirmed,” he said in Filipino. “Let us not panic, but we should be vigilant.
Also on Monday, the Health department said the country’s first monkeypox patient finished his 21-day isolation on Aug. 5 and might soon be released from isolation.
The 10 close contacts of the 31-year-old patient were still under quarantine, it told reporters in a Viber message.
The country’s first monkeypox patient was confirmed on July 29. The patient arrived from overseas on July 19 and had visited countries with documented cases of the disease. — K.A.T. Atienza
A TRANSPORT group on Monday urged the Philippine government to increase the capacity of public transportation as the country shifts to face-to-face classes starting this month.
“We need to focus on road-based public transportation — our buses, jeepneys, UV Express and tricycles working with each sector — to restore as much capacity as possible and to make them run reliably and efficiently,” transport economist Robert Y. Siy of the Move As One Coalition said in a Facebook Messenger chat.
The government should also promote walking and cycling as a “safe and attractive” option, especially for short trips, he said.
“With inadequate public transport and high transportation inflation, spending to improve sidewalks and bike lanes in every city is one of the best investments we can make,” he said. “The government should deliver tangible results in the short to medium term while making our cities more livable.”
Traffic congestion in Metro Manila has returned to pre-pandemic levels as schools and offices resumed face-to-face operations.
Elementary and high schools will start five days of physical classes starting November, while universities will begin more face-to-face classes this month.
Mr. Siy said it is difficult to boost public transportation months before a significant increase in demand. He also cited President Ferdinand R. Marcos, Jr.’s failure to offer a solution to the transport crisis in his first address to Congress last month.
“He highlighted railways and airports,” he said. “While we need to invest in railways, especially in metropolitan areas, they require many years to complete. They are not a meaningful response to today’s emergency.”
He said the state should encourage people to walk or ride a bicycle “as millions do in many cities all over the world.” “The difference is that the best cities in the world prioritize their roads and bridges for pedestrians and cyclists.”
Mr. Siy said the government keeps “prioritizing cars on our roads and bridges, even though the vast majority of Filipinos are not car owners.” “We can improve the safety and efficiency of public transportation, walking and cycling by revising how our roads are used.”
“Not only will the new bridges move more people, they will also encourage car owners to leave their cars at home and shift to sustainable travel modes,” he added.
Meanwhile, the Passenger Forum asked the Department of Transportation (DoTR) to announce how it solves bus congestion on the main EDSA highway in the capital region.
“Three weeks have already passed since the DoTR and the Land Transportation and Franchising Regulatory Board revealed their action plan for the EDSA busway,” the group said in a statement. “We want to know if there is any progress as the situation of EDSA carousel passengers has hardly improved.”
Under the plan, the transport agencies will increase buses allowed in the EDSA bus carousel to 440 from 200.
The country loses about P3 billion daily due to the traffic congestion in Metro Manila, according to the Japan International Cooperation Agency (JICA). This could balloon to P5.4 billion by 2035, it said.
