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Djokovic injury

Tennis habitués who got to watch Novak Djokovic’s match against Taylor Fritz in the third round of the Australian Open last Friday were treated to a roller-coaster ride that included a stoppage midway in compliance with safety protocols. Owing to the Victorian government’s decision to impose a five-day lockdown in light of the increasing number of COVID-19 cases, play was suspended while spectators lined up in the exits of the Rod Laver Arena at Melbourne Park half an hour before the midnight curfew. At the time, the 27th seed was ahead two sets to one and three to two in the fourth.

Fritz would go on to win the fourth set six games to four, thus forcing a fifth to settle the outcome. That said, he found cause to complain given the 10-minute interruption. “I mean, to be honest, like, completely honest, it’s absolutely ridiculous that… we’re asked to leave the court for 10 minutes in the middle of the match,” he said in his postmortem. No doubt, his frustration was an offshoot of the setback he ultimately absorbed at the hands of Djokovic. After all, the World Number One was then suffering from an injury sustained early in the third set, and any bit of respite was a welcome one.

Significantly, Djokovic disclosed that he suffered from a muscle tear in his own presser, and needed to evaluate his fitness moving forward. Never mind that he didn’t seem to exhibit any deficiencies in dominating the final set — or, for that matter, in taking care of business against the always-dangerous Milos Raonic two days later. Considering his track record in milking ailments for all they’re worth by way of gamesmanship, it’s fair to argue that he’s at least healthy enough to keep plodding on until he’s crowned champion of, or eliminated from, the competition.

Djokovic did admit that he took a magnetic resonance imaging scan and was apprised of the results. Always keen to see the big picture, he acknowledged that he would have withdrawn from further extortions were the title of a lesser event is at stake. However, he’s at the Australian Open, a major tournament he has claimed a record eight times, and far be it for him to set aside his racket with a ninth trophy in the horizon. It likewise bears noting that he remains three Grand Slam victories behind Roger Federer and Rafael Nadal. Any opportunity to close the gap cannot be missed.

How well Djokovic does from here on remains to be seen. He refuses to share his diagnosis, likely to prevent opponents from using the information to prep against him. Up next is a quarterfinal-round meeting with sixth-seed Alexander Zverev, against whom he holds a five-two advantage, but who may well be motivated to succeed in the face of his apparent handicap. In other words, he has his work cut out for him.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

EXPLAINER | Bitcoin’s mainstream charge raises stakes for central bank digital cash

LONDON – As cryptocurrencies increasingly go mainstream, pressure is growing on the world’s biggest central banks to move forward with their plans to issue digital cash and fend off private sector threats to traditional money.

The biggest cryptocurrency, bitcoin, has shifted from the fringes of finance towards embrace by major investors, companies and even cities. Tesla Inc’s $1.5 billion bet has sent bitcoin to record highs of almost $50,000 and the Facebook-backed digital currency Diem, formerly known as Libra, aims to launch this year.

Central banks from the Group of Seven nations set out in October how a digital currency could function, though progress has been slow. The communique from last week’s G7 finance ministers’ meeting did not mention the nascent technology.

Here’s the latest on central bank digital currencies (CBDC).

 

WHAT ARE THEY?

CBDCs are the electronic equivalent of cash.

Like banknotes or coins, they would give holders a direct claim on the central bank, leapfrogging commercial banks. Backed by central banks, they would be as “risk-free” as traditional money, and let holders make online payments.

Access to central bank money beyond physical cash has so far been restricted to financial institutions. Extending it to the broader public would have major economic and financial repercussions.

 

WHY DO CENTRAL BANKS THINK WE NEED IT?

Central banks fear losing control of the global payments system to cryptocurrencies, which are typically not controlled by any central body – or to private entities, such as in the case of Diem.

That could weaken central banks’ grip on money supply, one of the main avenues for steering economies. And the threat has grown more real amid the snowballing mainstream embrace of digital currencies.

Financial firms BNY Mellon and Mastercard said last week they would offer support for digital assets, while the city of Miami is seeking to allow the use of bitcoin for paying workers, and for fee and tax payments.

As the use of physical cash declines, a CBDC would be a safer digital payments alternative to cryptocurrencies.

 

WHAT WOULD A CBDC LOOK LIKE?

Here’s where views differ.

A CBDC could take the form of a token saved on a physical device, like a mobile phone or a pre-paid card, making it easier to transfer offline.

Alternatively, it could exist in accounts managed by an intermediary like a bank, which would help authorities police it and potentially remunerate it with an interest rate.

While the idea of a CBDC was born in part as a response to cryptocurrencies, there’s nothing to say it should use blockchain, the distributed ledger that powers these tokens.

The People’s Bank of China said its digital yuan would not rely on blockchain.

 

WHICH CENTRAL BANKS ARE LEADING?

The People’s Bank of China aims to become the first major central bank to issue a CBDC, part of its push to internationalise the yuan and reduce dependence on the dollar-dominated payment system.

State-run Chinese commercial banks are already testing a digital wallet application, local media reports said. E-commerce company JD.com Inc in December said it was China’s first virtual platform to accept the homegrown digital currency.

The European Central Bank and the Bank of England have launched consultations, though ECB President Christine Lagarde said last month any digital euro would take years. The Bank of Japan and the U.S. Federal Reserve have taken a backseat.

Sweden’s Riksbank has begun testing an e-krona, while the Bank of Canada has also accelerated work on its digital currency.

Smaller nations are forging ahead, too: The Bahamas last year become the first nation to roll out a CBDC nationwide.

 

WHAT ARE THE RISKS?

Central banks fear any mass migration to CBDC would hollow out commercial banks, depriving them of a cheap and stable source of funding like retail deposits.

In a crisis, this would make them vulnerable to a run on their coffers as clients would prefer the safety of an account guaranteed by the central bank.

For this reason, most designs envision a cap on how much each consumer would be allowed to hold in CBDC. Remuneration rates might be lower to reduce the attraction. – Reuters

Australia’s Victoria ‘well placed’ to start easing COVID-19 curbs, premier says

SYDNEY – Australia’s Victoria state is well placed to begin easing out of a snap five-day coronavirus lockdown on Wednesday, Premier Daniel Andrews said, as it reported just two new COVID-19 infections on Tuesday.

Victoria, the second most populous state in the country, was plunged into hard lockdown from midnight on Friday after a fresh outbreak linked to a quarantine hotel.

The state’s six million-plus residents are required to stay home except for essential shopping and work, caregiving and outdoor exercise.

Andrews reported two new COVID-19 cases on Tuesday, bringing the recent cluster to a total of 19 people.

“This strategy is working,” Andrews told reporters. “We are well-placed to be able to make changes tomorrow night. As I said yesterday, I’m not in a position to definitively commit to that, because these next 24 hours will be crucial,” Andrews said.

The Australian Open tennis tournament, which is being held in the state capital of Melbourne until Feb. 21, has barred spectators until the end of the lockdown.

New South Wales, the country’s most populous state, on Tuesday recorded 30 straight days without a local COVID-19 case, the first time since the pandemic began. The virus has been effectively eliminated in other states and territories.

Australia has reported a total of just under 29,000 COVID-19 cases and 909 deaths, with border closures and speedy tracking systems helping keep numbers relatively low compared with other developed countries.

Australia will begin inoculations for its 25 million population from Feb. 22 after receiving its first shipment of COVID-19 vaccine on Monday. – Reuters

Dollar in doldrums as recovery optimism thrives

SINGAPORE – The U.S. dollar fell to a three-week low on Tuesday, sterling hit an almost three-year high and commodity currencies rose as vaccination progress added to investors’ recovery hopes.

The buoyant mood, and a sell-off in U.S. Treasuries, also dragged on the safe-haven Japanese yen, which fell through its 200-day moving average against the dollar and struck multi-year lows against the euro, Aussie and Swiss franc.

The yen last traded 0.2% weaker at 105.53 per dollar. The dollar index, which measures the greenback against a basket of majors, fell 0.1% to 90.240, its lowest since Jan. 27 and the euro hit its highest since that date.

The dollar traded near milestone lows against other currencies.

The Chinese yuan was on the brink of rising past 6.4 per dollar for the first time since mid-2018. The risk-sensitive Australian dollar hit a one-month high of $0.7802 and the kiwi made a five-week peak of $0.7257.

“It’s a risk-on, weaker-dollar mood taking over,” said Bank of Singapore currency analyst Moh Siong Sim, as investors focus on a global bounce back in growth, inflation and spending.

He said investors were weighing up whether the recovery would be U.S.-led, which could support the dollar, or much broader, and thus negative for the greenback as global trade picks up.

“Things right now reflect greater comfort with the story of a synchronised global recovery, which is why we are seeing a weaker dollar,” he said.

Sterling, which has led the charge, extended gains to hit $1.3946, its highest level since April 2018 as Britain leads the world in per-capita vaccination speed. The currency has gained almost 3% from early-February lows.

The euro crept 0.2% higher to $1.2150 to re-test recent resistance at that level. Rising oil prices lifted the Canadian dollar and Norwegian crown to multi-week highs.

Soaring bitcoin hovered just short of $50,000, as profit-taking arrested a steep rally which has driven the cryptocurrency over 60% higher so far in 2021.

 

YIELDS AND YEN

Besides the dollar, the Japanese yen has been the other casualty of the broad rally in financial markets and it hit a one-week low on Tuesday.

Recent equity gains – global stocks have climbed for a dozen days straight – have been matched by growing expectations for higher inflation, especially as central banks keep promising to keep rates low for a long time.

Those expectations were further boosted by a jump in oil prices this week, as a cold snap shuts Texan wells, and have driven U.S. Treasury yields to their highest since March.

That can affect the yen because Japanese investors are acutely sensitive to any rise in nominal U.S. yields, especially as they extend above anchored Japanese returns.

Benchmark ten-year U.S. yields are now 33 basis points higher for the year so far and the yen about 2% lower.

The yen also hit its lowest since late 2018 against the euro and the Australian dollar and hit a five-year low of 118.80 yen per Swiss franc.

“The yen has been the worst performing currency of 2021, with its negative correlation to U.S. Treasury yields proving to be the biggest dampening factor,” said Francesco Pesole, currency strategist at Dutch bank ING in a note to clients.

“When adding weak safe-haven demand as the global recovery gathers pace, some additional trimming of yen net long positions may be on the cards.”

Ahead on Tuesday, investors are looking to euro zone growth estimates, a German sentiment survey and U.S. manufacturing data to gauge the relative pace of the world’s pandemic recovery. – Reuters

Syringe shortage hampers Japan’s COVID-19 vaccination roll out

TOKYO – Japan is scrambling to secure special syringes to maximize the number of COVID-19 vaccine shots used from each vial, but manufacturers are struggling to ramp up production quickly, raising fears that millions of doses could go waste.

Japan, with a population of 126 million, last month signed a contract with Pfizer Inc to procure 144 million doses of its vaccine, or enough for 72 million people, with the vaccination campaign set to start on Wednesday.

One vial is meant for six shots, Pfizer says, but it takes special syringes that retain a low volume of solution after an injection to extract six doses, while only five shots can be taken with standard syringes that the government has stored up in preparation for the inoculation drive.

“We are still trying to secure these special syringes,” Chief Cabinet Secretary Katsunobu Kato said on Tuesday.

He did not directly answer questions when asked last week whether the shortage meant the number of shots Japan can administer would be reduced.

Both a Pfizer Japan spokeswoman and a Japanese health ministry official declined to say whether the contract to supply Japan with 144 million doses of vaccine by the end of the year is based on six doses being taken from each vial.

Inoculating its population swiftly is a top priority for Prime Minister Yoshihide Suga’s government as he is determined to hold the Tokyo Olympics this summer after the Games were postponed for a year due to the coronavirus pandemic.

In an bid to minimize the amount of vaccine left unused in syringes and vials, the government is asking medical equipment manufacturers to boost output of the low dead-space syringes, but there are doubts whether that can be done quickly enough.

Nipro Corp, which runs a Thailand plant capable of making 500,000 units a month, said it planned to boost its monthly capacity to a few million, but that it would take up to five months to reach that goal.

“We are getting a request from the health ministry and we need to take some steps. But it’s not something we can do overnight. It’s another four to five months before we can ramp up sharply,” a Nipro spokeswoman said.

Another major Japanese medical gear maker Terumo Corp said it had started developing syringes fit for extracting six doses from a vial, but that it was too early to say when it can start commercial output.

Although daily cases have been in decline in recent weeks in Japan after peaking in early January, Tokyo and nine other prefectures are still under the coronavirus state of emergency.

Japan has seen cases total around 418,000, with 7,042 deaths, according to public broadcaster NHK. – Reuters

Malaysia to get first batch of Pfizer-BioNTech COVID-19 vaccines on Feb. 21

KUALA LUMPUR – Malaysia will get its first batch of COVID-19 vaccines produced by U.S. and German drugmakers Pfizer and BioNTech on Feb. 21, and kick off its inoculation drive five days after that, Prime Minister Muhyiddin Yassin said on Tuesday.

Mr. Muhyiddin said he will be the first to receive a dose of the vaccine when the campaign starts on Feb. 26.

“This comprehensive programme is aimed at ensuring herd immunity in the community so that we can stop the spread of COVID-19 infections and bring an end to the pandemic,” Mr. Muhyiddin said at the launch of the vaccination programme handbook.

Malaysia has seen a sharp spike in coronavirus infections in recent weeks, after having largely reined in the epidemic for most of 2020. It has reported a total of over 260,000 COVID-19 cases, the third highest in Southeast Asia after Indonesia and the Philippines, and 975 deaths.

The Southeast Asian country has said it aims to cover at least 80% of its 32 million population within a year and has secured more than enough vaccines to reach the target.

Apart from its deal with Pfizer and BioNTech , Malaysia also has supply agreements with Britain’s AstraZeneca, Russia’s Gamaleya Research Institute, and China’s Sinovac Biotech Ltd and CanSino Biologics .

Mr. Muhyiddin said earlier this month that the first phase of the vaccine rollout from February to April will involve 500,000 frontline workers, followed by 9.4 million high-risk individuals who will be vaccinated between April and August.

A third and final phase will involve more than 16 million adults aged 18 and older, and will run from May to February next year.

The government has said it will extend its free COVID-19 vaccination programme to all foreigners residing in the country, but that priority will be given to Malaysians. – Reuters

Homes that take care of your loved ones

For nearly a year now, staying home has been a habit for everybody. As families remain cloistered in their houses for time indefinite, they also get more creative in celebrating the year’s most meaningful events. From birthdays, anniversaries, Christmas, New Year, and even Valentine’s Day—all these moments had to be celebrated at home.

Camella Freya

With social spaces limited due to health restrictions, each family members’ creativity was tested to make these occasions as memorable as possible.  Instead of celebrating and eating out in malls and restaurants, couples scour the ends of online sites and delivery services for Valentine’s Day. Kids spruce up the balcony for a surprise al fresco dinner for mom and dad. Young couples prepare for a more laid-back movie night at home. The common denominator in all of them? A safe sanctuary to spend time in.

As the future remains uncertain and families do their best to adapt to a new normal, it is crucial to have a safe home where one could rest and get a sense of normalcy. While families adjust, it also pays to have a dwelling space that can cater to their dynamic needs. With over forty years of experience in home- and township-building, Camella brings just that.

Camella believes that finding comfort at home is the best gift anyone can have this year. The brand is continuously working on bringing premium lifestyle experiences to make each member of the family feel cared for. By considering its residents’ needs and wants, Camella’s romantic gesture pays attention to the smallest details of every family’s dream home and community.

Proving its authority as the pioneer in creating townships, Camella continues to expand its product features to take care of its families. With its newest line of SmartHomes, Camella prepares its residents for a safer future with the power of technology. For more information on the brand’s latest upgrades, visit www.camella.com.ph.

Camella is the flagship brand of the country’s largest homebuilder, Vista Land & Lifecapes, Inc. Visit www.vistaland.com.ph for more information.

Overseas Filipinos’ cash remittances (Dec. 2020)

REMITTANCES slipped by 0.8% in 2020, the first annual contraction in two decades, as some overseas Filipino workers (OFWs) lost their jobs while others tightened their belts amid the pandemic. Read the full story.

Overseas Filipinos’ cash remittances (Dec. 2020)

Remittances dip as OFWs feel the pinch

Cash remittances coursed through banks stood at $29.903 billion in 2020. — REUTERS

By Luz Wendy T. Noble, Reporter

REMITTANCES slipped by 0.8% in 2020, the first annual contraction in two decades, as some overseas Filipino workers (OFWs) lost their jobs while others tightened their belts amid the pandemic.

Cash remittances coursed through banks stood at $29.903 billion last year, slightly lower than the record $30.133 billion in 2019, according to data released by the Bangko Sentral ng Pilipinas (BSP) on Monday.

Remittances saw its first annual contraction since the -0.3% seen in 2001 and the worst since the -18.3% logged in 1999. However, the decline was better than the 2% contraction forecast by the central bank for the full year.

For ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa, remittances may have shrank steeper than BSP data when adjusted for exchange rate movements.

“In peso terms, remittances have actually contracted by 4.8% despite OFWs struggling to find a way to send home more dollars to pay for fixed peso expenditures such as tuition or mortgage payments,” Mr. Mapa said in a note.

In 2019, the peso hovered beyond the P50-per-dollar level and even reached P52 a dollar. By 2020, the peso appreciated to reach the P48-a-dollar level, which means OFWs needed to send more to provide for their families during the crisis.

The BSP said inflows from economies such as Saudi Arabia, Japan, the United Kingdom, the United Arab Emirates (UAE), Germany, and Kuwait declined last year.

On the other hand, money sent home by OFWs in the United States, Singapore, Canada, Hong Kong, Qatar, South Korea, and Taiwan increased.

This difference showed the “disparate effects” of policies of fiscal support in host economies in relation to the ability of OFWs to continue supporting their families in the Philippines, Security Bank Corp. Chief Economist Robert Dan J. Roces said.

“For instance, the fiscal support injection in the US allowed OFWs based there to continue sending that contributed to it as the country with the largest source. Contrast this to other traditionally strong origin countries — such as Saudi Arabia — which faltered as lockdowns forced work stoppage and sent workers home,” Mr. Roces said in a text message.

BSP data showed the United States had a 39.9% share of total remittances in 2020. Inflows from the US, along with Saudi Arabia, Japan, United Kingdom, United Arab Emirates, Canada, Hong Kong, Qatar, and South Korea made up 78.6% of the total.

In December alone, cash remittances dipped 0.4% to $2.89 billion from $2.902 billion a year earlier. Inflows, however, reached a 12-month high.

Money sent home by land-based OFWs fell by 0.7% to $2.297 billion, while those employed in ships remitted $593.2 million, up 0.8%.

Personal remittances, which include inflows in kind, dropped by 0.8% year on year to $33.194 billion in 2020. In December alone, personal remittances slipped 0.3% to $3.205 billion.

This year, the BSP projects cash remittance to grow by 4% on the back of an expected global economic recovery.

Mr. Mapa said remittances will see a “moderate growth this year” as the peso strengthens and more sea-based workers are deployed.

“With vaccination rollouts ongoing across the globe, job prospects may brighten for OFWs in the coming months which will be crucial in supporting sagging domestic incomes due to severe job losses and poor consumer confidence,” he said.

Latest data from the Department of Foreign Affairs showed more than 351,000 OFWs have already been repatriated since the outbreak in February last year.

“It [number of OFWs retrenched] sends a strong signal that authorities should offer an alternative source of income to those affected,” Colegio de San Juan de Letran Graduate School Dean Emmanuel J. Lopez said in an e-mail.

Overseas Filipinos’ cash remittances (Dec. 2020)

PHL dollar reserves slip in January

The Philippines’ gross international reserves (GIR) settled at $108.8 billion as of end-January. — REUTERS

THE Philippines’ gross international reserves (GIR) dipped in January as the National Government paid its foreign debt obligations and the central bank adjusted the valuation of its gold holdings.

Data from the Bangko Sentral ng Pilipinas (BSP) released on Monday showed the foreign exchange buffers decreased by 1.19% to $108.799 billion as of end-January, from the record $110.117 billion as of end-December.

This was still, however, 25% bigger than the $86.868-billion level a year ago and also exceeded the BSP’s $102-billion projection by end-2021.

“The month-on-month decrease in the GIR level reflected outflows mainly from the foreign currency withdrawals of the national government from its deposits in the BSP to pay its foreign currency debt obligations and revaluation adjustments from the BSP’s gold holdings due to the decrease in the price of gold in the international market,” the central bank said in a statement.

Partially offsetting factors were inflows from the BSP’s foreign exchange operation and income from investments abroad.

Last year, the government borrowed P2.64 trillion, sourced from both local and foreign entities to support its pandemic response.

Ample foreign exchange buffers protect the country from market volatility and ensure the country is capable of paying its debts in the event of an economic downturn.

At the end-January level, the country’s dollar reserves is enough to cover around 11.6 months’ worth of imports of goods and payments of services and primary income, the BSP said.

It is also equivalent to about 9.4 times the country’s short-term external debt based on original maturity and 5.1 times based on residual maturity.

During the month, the value of the gold reserves dropped 7.86% to $10.692 billion from $11.605 billion as of end-December. It was also 33% higher than the $8.015 billion a year ago.

Gains from investments abroad, which made up the bulk of the GIR, also dipped by 1.2% to $92.527 billion from $93.644 billion a month ago but increased by 24.4% from  the $74.364 billion a year earlier.

On the other hand, foreign currency deposits reached $3.532 billion, rising by 25% from the $2.821 billion in the prior month and by 30% from the $2.723-billion level as of end-January 2020.

Special drawing rights, or the amount the country can tap from the International Monetary Fund (IMF) was maintained at $1.232 billion for the second straight month.

Meanwhile, buffers kept with the IMF slightly rose 0.03% to $813.4 million from $813.1 million as of end-December and jumped 38% from the $587.9 million logged a year earlier.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said GIR may again reach a record high in the coming months as the pandemic drags on.

“Proceeds of foreign borrowings and other fund-raising activities amid near record low interest rates by the country’s biggest companies/conglomerates could add to the country’s GIR,” Mr. Ricafort said in a text message.  — Luz Wendy T. Noble

GDP growth may return to the pre-pandemic level by Q4 2022

THE Philippine economy is expected to post the second-highest growth in Southeast Asia this year, according to data and analytics company GlobalData. — PHILIPPINE STAR/MICHAEL VARCAS

THE Philippines may continue to see a lackluster economic recovery, returning only to pre-pandemic gross domestic product (GDP) level by the fourth quarter of 2022, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said on Monday.

In a briefing on Monday, Mr. Mapa said the central bank is likely to provide continued support for the economy by being accommodative and avoiding any further policy actions this year, before going for a 50-basis-point rate cut in 2022.

This year, he said the economy may grow by 5.1% but mainly due to base effects from the 9.5% contraction in 2020. This is a less optimistic forecast than the 6.5% to 7.5% growth outlook by economic managers.

“COVID-19 wiped out three years of economic gains and now we’re sort of operating at that base. The real question will be: What will be the growth trajectory after 2021 when the base effects have been washed out?” Mr. Mapa said.

With the job market still “not looking rosy,” consumption, which fuels 70% of the economy, is unlikely to see hefty recovery. Mr. Mapa said it will be “difficult to expect a strong bounce back” when unemployment remains high.

The jobless rate in October stood at 8.7% representing about 3.813 million unemployed Filipinos.

In terms of capital formation, the decline in bank lending suggests investments may likely to bounce back soon, Mr. Mapa said.

For the first time in over 14 years, outstanding loans by banks declined 0.8% in December following the already tepid 0.5% in December.

“Even though the BSP has cut the borrowing cost, [rates] have not really followed suit in 2020. This has been tied to banks being a little more circumspect in giving out loans as there’s a lot of risks out there,” he said, noting bank lending may remain tepid in the next couple of months.

However, Mr. Mapa said government spending could be a saving grace, but fiscal measures, including the P4.5-trillion national budget, have been modest.

“Yes, it’s the biggest budget in history, however, maybe not commensurate to the drop in GDP,” he said.

On the monetary side, Mr. Mapa is pricing in a pause for the rest of 2021 before the central bank likely goes for a 50-bps rate hike next year.

“This pause allows them to provide stimulus given the low rates but sort of at the same time achieving their inflation targeting price stability mandate,” Mr. Mapa said.

The central bank maintained the key policy rate at a record low of 2% last week.

REBOUND YEAR
Meanwhile, the Philippine economy is expected to post the second-highest growth in Southeast Asia this year, data and analytics company GlobalData said.

In a statement, GlobalData said Philippine GDP is projected to grow by 8.4% this year, after a 9.5% GDP contraction in 2020.

This would be the second-fastest GDP growth among nine ASEAN countries tracked this year.

Sought for further details, GlobalData did not respond to queries as of press time.

GlobalData expects the broader Association of Southeast Asian Nations (ASEAN) region to grow by 6% this year, as the coronavirus infections taper off and international trade picks up.

Fatality rate due to COVID-19 in Indonesia and the Philippines have fallen to 2.7% and 2.1%, respectively as of February. Meanwhile, the death rate in Malaysia, Thailand and Singapore are near zero percent.

“Due to the implementation of non-tariff measures on essential goods among the ASEAN nations, trade is expected to increase in 2021. Trade windows are set to open for ASEAN nations with the signing of Regional Comprehensive Economic Cooperation (RCEP) in November 2020, which will further spur economic integration,” Gargi Rao, an economic research analyst at GlobalData was quoted as saying.

Ms. Rao expects a “sharp recovery” happening in the second half.

Aside from improving the trade environment, she said the region’s manufacturing sector will also bounce back this year given a stronger health sector, the global vaccine rollout and a steady recovery in demand and production.

In the Philippines, factory activity surged to a two-year high in January with a Manufacturing Purchasing Managers’ Index (PMI) of 52.5.

Vietnam is still poised to lead the economic growth this year, according to GlobalData with a projected 8.5% expansion in 2021 from a 1.7% estimated uptick last year.

“GlobalData forecasts Vietnam to be the fastest-growing economy with a real GDP growth of 8.5% in 2021. Vietnam’s growing trade with the EU and its robust fiscal policies have helped the economy to witness an uptick in manufacturing and service sectors growth,” the statement read.

For the rest of the region, Malaysia is estimated to grow by 7.1% this year, Cambodia by 6.7%, Singapore by 5.8%, Myanmar by 5.4%, Indonesia by 5.2%, Thailand by 4.4% and Brunei by 2.5%.

“Increasing investment and recognizing open trade are key to put ASEAN economies on a steady growth path, along with effective vaccination for COVID-19 in 2021. An uptick in retail trade and growing demand for e-commerce will bring in new capital to spur growth,” Ms. Rao said. — Luz Wendy T. Noble and Beatrice M. Laforga

Cavite gov’t invites firms to bid for Sangley airport project

By Arjay L. Balinbin, Senior Reporter

THE Cavite provincial government is once again inviting firms to submit joint venture proposals for the Sangley international airport project, less than a month after it canceled an earlier deal with MacroAsia Corp. and China Communications Construction Company (CCCC).

In an announcement published on Monday, the Cavite government said the project feasibility study including schedules and updates, instructions to candidate joint venture partners, and the draft joint venture and development agreement will be available for distribution to interested parties from Mach 1 to March 30.

Interested parties should first submit an intent letter, sign the nondisclosure agreement, and pay the non-refundable participation fee of P1 million or $20,000 before they could obtain copies of the bid documents from the Cavite government, which serves as the implementing agency for the project.

Among the responsibilities of Cavite’s joint venture partner is to provide the necessary equity investment, debt financing, and credit enhancements.

The selected partner should also secure or perform engineering, procurement, and construction services for the land and airport development components of the 1,500-hectare Sangley airport project.

The Cavite provincial government said the deadline for the submission of the proposals is on May 4.

“Under the terms of the project’s no objection clearance from the Department of Transportation, no sovereign loan or National Government guarantee will be granted,”  it said.

In a phone message to BusinessWorld, Cavite’s Public-Private Partnership Selection Committee Legal Officer Jesse R. Grepo said: “As of now, we haven’t received any formal inquiries yet.”

He noted there were some groups who expressed their intent, but did not submit bids.

“I can’t assume if the same are still interested now,” he added.

Only the MacroAsia-CCCC tandem submitted a proposal to develop the Sangley airport in 2019. Other groups that bought bid documents for the project were Metro Pacific Investments Corp. (MPIC); Prime Asset Ventures, Inc.; Philippine Airport Ground Support Solutions, Inc.; Langham Properties, Inc.; and Mosveldtt Law Offices.

“If still interested, previously registered entities that bought the request for proposals (bid documents) during the first competitive selection process launched in October 2019 would have to submit a new written expression of intent, update their registration details, and pay the renewal fee of P25,000 or $500,” the Cavite provincial government said.

The provincial government reserves the right to accept or reject any proposal, or to discontinue the second competitive joint venture selection process.

Cavite informed the MacroAsia-CCCC tandem on Jan. 26 of its decision to cancel the notice of selection and award for the Sangley airport project it had issued on Feb. 12, 2020.

Cavite Governor Juanito Victor “Jonvic” C. Remulla, Jr. said the “various deficiencies in the submission of requirements to conclude the joint venture agreement” led to the province’s decision.

MPIC Chairman Manuel V. Pangilinan and MacroAsia Chief Financial Officer Amador T. Sendin had yet to respond to BusinessWorld’s requests for comment.

MPIC is one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains an interest in BusinessWorld through the Philippine Star Group.

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