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Retire without worries: How InLife’s Retire Assure can help you enjoy the life you deserve

When it comes to retirement planning, we often hear the same advice: save and invest. But how do you ensure that the money you’ve worked hard to save will provide a steady income in your retirement years? InLife offers an answer to this question through InLife Retire Assure.

Designed as the first true retirement insurance product in the Philippines, InLife Retire Assure takes the guesswork out of retirement planning as it goes beyond the traditional lump-sum benefits offered by other companies. Instead, it offers a stable monthly income that can last from age 60 until 100. It’s like receiving a paycheck even after you have stopped working, ensuring that you can maintain your lifestyle and freedom without worrying about your future expenses.

Monthly Income Matters in Retirement

One key to financial security in retirement is to have a regular income stream. It’s not just about how much you have saved; it’s also about ensuring that your savings can provide for you in a manageable, consistent way. The goal is to replace your lost income once you retire, so you don’t have to worry about running out of money during the most crucial times.

InLife Retire Assure’s guaranteed monthly income helps protect retirees from the risks of overspending or outliving their savings. This type of steady cash flow, combined with potential dividends to keep up with the cost of living, allows for a true sense of financial independence and peace of mind.

Addressing a Real Need for Filipino Retirees

Data from the Bangko Sentral ng Pilipinas show that 80% of Filipinos over the age of 60 are not financially equipped to meet their basic needs in retirement. While government programs like the Social Security System (SSS) and the Government Service Insurance System (GSIS) provide support, the average monthly pensions, P5,123 for SSS and P18,525 for GSIS, may not be enough to sustain a retiree’s desired lifestyle.

InLife Retire Assure offers a disciplined way to prepare for the future. By allowing you to set aside a portion of your income over a period of five or ten years, or through regular payments until the age of 59 or 64, it ensures that your money grows with you. The best part? You don’t have to go through stringent medical evaluations to qualify for an InLife Retire Assure policy. This means every Filipino can secure a stable financial future especially after retirement.

Flexibility and Security Built into Your Plan

InLife understands that every person’s financial journey is unique. With InLife Retire Assure, policyholders have flexible payment options to make contributions annually, semi-annually, quarterly, or monthly, based on what suits their lifestyle. And when it’s time to receive the benefits, payouts are easily accessible through a designated bank account.

Additionally, InLife Retire Assure provides a life insurance component, giving peace of mind that your family will be protected even if unforeseen events occur. This dual benefit means that, beyond retirement, your loved ones are also cared for financially.

Empowering Filipinos to Retire Without Worries

InLife’s Chief Marketing Officer Gae L. Martinez, explains the driving force behind InLife Retire Assure: “We want our fellow Filipinos to retire without worries. Retirement should be a time to relax, reconnect, and explore. People deserve to live their lives to the fullest without the stress of outliving their savings.”

Retirement can be a rewarding chapter in life, full of experiences that we often postpone in our working years. InLife Retire Assure makes it possible to truly enjoy those years, secure in the knowledge that there is a plan to support the life you’ve dreamed of. By planning ahead with InLife Retire Assure, you’re investing in your future self—a future where your only worry is deciding which adventure to pursue next.

For more information on InLife Retire Assure, visit https://bit.ly/InLifeRetireAssure or connect with an InLife Financial Advisor.

 

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New branch alert: The Travel Club+ second branch is now open in Power Plant Mall

For three decades, The Travel Club has been a go-to store for all things travel. When they opened the flagship The Travel Club+ Shangri-La Plaza early this year, it thrilled travelers with its upgraded interior, an array of exclusive brands, travel curations and more. But just when you thought it was the highlight of the year, they’ve done it again with another equally elevated branch — this time, in Power Plant Mall, Rockwell Center, Makati.

An Elevated Experience

To celebrate this yet another milestone, The Travel Club+ held an elevated launch on Nov. 21, 2024 where travel enthusiasts, top media editors, and distinguished guests gathered. Guests were treated to an exclusive tour of The Travel Club+ Power Plant Mall and through the experiential activities of the event, a taste of the elevated experiences awaiting travelers when they shop in-store.

To commemorate this special day, the talented artist Della De Leos also painted The Travel Club’s 30th Anniversary Limited Edition luggage with art encapsulating the limitless possibilities the new concept has to offer. A ceremonial toast was also led by Sheena Valencia, Brand Manager, and special guests, marking the occasion with so much excitement.

Since The Travel Club+ has an in-store viennoiserie and cafe powered by Everyday Coffee Roasters, guests were able to sample their menu from pastries, cakes and coffee. Guests also enjoyed creating their own mocktails, crafting their own flower bouquets from Canvas of Praise, customizing pet tags from Pupperwear and experiencing the Custom Corner of the store by personalizing their The Travel Club+ totes with heatpress stickers, their Delsey luggage tags with the monogramming machine and a lot more!

The Plus Features

Just like in their first flagship, this Power Plant branch offers an unmatched shopping experience for those who would like to add more to their travel moments. Customers can shop exclusive and premium brands here such as France’s Oumos, Italy’s Piquadro, South Korea’s Rawrow, USA’s Briggs & Riley and Japan’s Ace and Proteca. Quality local travel brands are also now available in The Travel Club+.

Against the beautiful backdrop of the store’s elevated design, a Smart Concierge will greet guests with ready assistance for the products they need. When they enter the store, there’s also an in-store viennoiserie and a community lounge where they can relax while shopping or even use it as a venue to plan future trips with friends. The crowd-favorite Custom Corner, where travelers can personalize their gear and add a unique flair to their travel essentials, is also a staple in the new branch.

The Travel Club+ is designed thoughtfully for adventurers of all kinds. Special curations for moms traveling with babies or toddlers, people traveling with pets, and artsy travelers, are on display in-store.

The Travel Club+ at Power Plant Mall is located at R2 Level, ready to bring your travel experience to new heights. With its perfect fusion of style, functionality, and personalized service, The Travel Club+ is yet again ready to elevate your every journey.

Watch out also for The Travel Club+ TriNoma’s opening in December 2024!

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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Philippines to continue resupply missions in S.China Sea, won’t escalate situation

MANILA – Philippine President Ferdinand Marcos Jr said on Tuesday that the country will continue its resupply missions in the South China Sea without the need to deploy the navy, despite a recent incident with Chinese vessels.

“We will never be part of an escalation in the West Philippine Sea,” Mr. Marcos told reporters, adding that the country will continue supporting fishermen.

The Philippines refers to the portion of the South China Sea that it claims as the West Philippine Sea.

On Dec. 4, Chinese coastguard vessels fired a water cannon and side-swiped a Manila fisheries bureau boat transporting supplies to Filipino fishermen operating in the Scarborough Shoal, a prime fishing patch, according to Philippine officials.

Philippine coastguard vessels also faced “blocking, shadowing, and dangerous maneuvers” from a Chinese navy vessel.

The Philippines will not deploy its own navy warships in the area to prevent provocation and escalation, Mr. Marcos said.

The Philippines filed a diplomatic protest against China, which claims almost all of the South China Sea.

China’s embassy in Manila did not immediately respond to a request for comment. China’s coast guard said last week that Philippine ships “dangerously approached” Beijing’s territorial waters around the Scarborough Shoal. – Reuters

South Korea opposition party plans to pass government budget bill on Tuesday

REUTERS

SEOUL – South Korea’s main opposition party said on Tuesday it would pass a government budget bill for 2025 that triggered President Yoon Suk Yeol’s martial law decree last week, at a plenary session scheduled to be held later in the day.

The opposition-controlled parliament last month cut 4.1 trillion won from the government’s proposed 677.4 trillion won ($473 billion) budget.

“We will pass the budget bill today,” Democratic Party Leader Lee Jae-myung said. “A swift passage of the bill will help resolve the current uneasiness and crisis.”

The government says the budget cut will paralyze basic government functions, hinder responses to external challenges and delay policy measures for small businesses and the vulnerable.

President Yoon cited opposition obstructionism over government budgets as one justification for his martial law decree on Dec. 3, which triggered a constitutional crisis in Asia’s fourth-largest economy.

Senior Democratic Party lawmaker Park Chan-dae said if the government needed money for “spending for people’s livelihoods, it can be solved later through an extra budget”.

South Korea’s treasury bond market weakened, with three-year treasury bond futures KTBc1 down 0.10 points at 106.79.

“If finalized, that will ease uncertainty but the market is seen reacting somewhat sensitively and emotionally to the comments about extra budget,” said Kong Dong-rak, a fixed-income analyst at Daishin Securities. – Reuters

New Zealand plans to ban dog racing, citing high injury rates

STOCK PHOTO | Image by Peter Kaul from Pixabay

The New Zealand government on Tuesday proposed to ban greyhound racing from 2026, saying the percentage of dogs injured in races remained significantly high.

New Zealand’s greyhound racing industry has long faced criticism for not doing enough to protect the welfare of the animals, with three reviews on the industry over the past decade all recommending major changes.

“While fewer dogs are dying, injury rates, while down slightly, have plateaued and remain unacceptably high,” Minister for Racing Winston Peters said in a statement.

Greyhound racing will be wound down over a 20-month period, and an advisory committee has been appointed to help find new homes for an estimated 2,900 racing dogs, Mr. Peters said.

The government on Tuesday introduced a bill, with the support of the opposition Labor party, to prevent the unnecessary killing of racing dogs. It will introduce further legislation next year to make changes to the existing laws to outlaw greyhound racing, Mr. Peters said.

Greyhound Racing New Zealand chairman Sean Hannan said the decision was a “devastating blow” to an industry which had invested heavily in reform.

“We are extremely disappointed that the government has not recognized the work the industry has done to address areas of concern – to the extent that it now leads the wider racing industry with its commitment to animal welfare,” Mr. Hannan said in a statement.

“We are extremely concerned for the future of the industry’s greyhounds, which may no longer be a breed seen in New Zealand.”

New Zealand, along with the U.S., Ireland, Australia and Britain, is one of only five countries where commercial greyhound racing is still allowed.

It accounts for 8.5% of New Zealand’s NZ$1.3 billion ($760 million) racing industry, with just over 1,000 full-time jobs, data showed. – Reuters

US judge weighs fate of the Onion’s buyout of Infowars

FREEPIK

Lawyers for conspiracy theorist Alex Jones urged a U.S. bankruptcy judge to block the sale of his Infowars website to the Onion news parody site at a Monday court hearing in Houston.

The Onion was named the winning bidder for Infowars in a November bankruptcy auction, but Mr. Jones and a company affiliated with his dietary supplements sales have argued the sale process was plagued by fraud and collusion.

Mr. Jones declared bankruptcy in 2022 and was forced to liquidate his assets to pay $1.3 billion in legal judgments to the families of 20 students and six staff members who were fatally shot in the 2012 massacre at Sandy Hook Elementary School in Newtown, Connecticut.

Courts in Connecticut and Texas have ruled Mr. Jones defamed the families by making repeated false claims the mass shooting was staged as part of a government plot to take guns away from Americans.

The Onion has said it plans to re-launch Infowars in 2025 as a parody site filled with “noticeably less hateful disinformation” than before.

The sale must be approved by U.S. Bankruptcy Judge Christopher Lopez, who is overseeing the bankruptcy, before it is final. Mr. Lopez voiced concerns about the auction’s transparency at a previous court hearing, and he said he will continue to review the sale on Tuesday.

Mr. Jones’ attorney Ben Broocks told Lopez the Onion only put up half as much cash as the $3.5 million offer from First American United Companies, the Jones-affiliated company which was the runner up in the auction, but boosted its bid with “smoke and mirrors” calculations.

The buyout was ultimately meant to harm Jones rather than bring in more cash for his creditors, according to Mr. Broocks.

Mr. Broocks and Walter Cicack, the attorney representing First American United Companies, said the Onion had unfairly received credit for lining up support from Connecticut-based Sandy Hook families that had won the largest legal judgments against Jones.

Those families, who are Mr. Jones’ largest creditors, boosted the Onion’s bid by agreeing to forgo immediate repayment from the Infowars sale and instead take payments from the re-launched business’s future revenue.

Christopher Murray, a court appointee trustee charged with selling Mr. Jones’ assets, has said the auction was fair, and First American United Companies was trying to improperly influence the process after submitting an inferior bid that offered less value for Mr. Jones’ creditors.

Both bidders had the same amount of information before they were asked to submit their final offers, and the process ultimately resulted in final bids that were more than quadruple the value of the initial bids, Murray’s attorney Joshua Wolfshohl told Lopez.

Elon Musk’s social media site X has made a limited objection to the sale, saying Infowars’ social media accounts are owned by X and cannot be included in a bankruptcy sale.

The Onion resolved that objection by agreeing to migrate the content on Infowars’ X accounts to new accounts rather than seeking an outright purchase of the existing accounts. – Reuters

China targets Nvidia with antitrust probe, escalates US chip tensions

FILE PHOTO: The logo of technology company Nvidia is seen at its headquarters in Santa Clara, California February 11, 2015. REUTERS/Robert Galbraith/File Photo

BEIJING – China said on Monday it has launched an investigation into Nvidia over suspected violations of the country’s anti-monopoly law, in a move widely seen as a retaliatory shot against Washington’s latest curbs on the Chinese chip sector.

The statement from the State Administration for Market Regulation announcing the probe did not elaborate on how the U.S. company, known for its artificial intelligence and gaming chips, might have violated China’s anti-monopoly laws.

It said the U.S. chipmaker was also suspected of violating commitments it made during its acquisition of Israeli chip designer Mellanox Technologies under terms outlined in the regulator’s 2020 conditional approval of that deal.

Nvidia’s shares closed 2.5% lower on Monday. A Nvidia spokesperson said the company worked hard to “provide the best products we can in every region and honor our commitments everywhere we do business. We are happy to answer any questions regulators may have about our business.”

The investigation comes after the U.S. last week launched its third crackdown in three years on China’s semiconductor industry, which saw Washington curb exports to 140 companies, including chip equipment makers.

“It’s (the probe) unlikely to have much of an impact on the company, particularly in the near term, because most of Nvidia’s most advanced chips are already restricted from being sold into China,” said Bob O’Donnell, chief analyst at TECHnalysis Research.

In a sign that China intends to fight back strongly against the latest move, shortly after Washington’s announcement Beijing banned exports to the United States of the critical minerals gallium, germanium and antimony.

On the same day, four of the country’s top industry associations issued a rare and coordinated response saying that Chinese companies should be wary of buying U.S. chips as they were “no longer safe” and buy locally instead.

Nvidia has been one of the many companies caught up in the U.S.-China frictions. An earlier round of export curbs by the U.S. stopped Nvidia from selling its most advanced AI chips to China, prompting it to come up with new China-specific versions that were compliant with U.S. export controls.

“It’s clear that the Chinese government is trying to react against recent restrictions from the U.S., but their ability to impact the U.S. semiconductor industry continues to decrease over time,” O’Donnell said.

Nvidia dominated China’s AI chip market with a more than 90% share before these curbs. However, it faces increasing competition from domestic rivals, chief among them being Huawei. China accounted for around 17% of Nvidia’s revenue in the year to the end of January, sliding from 26% two years earlier.

In 2020, the company won a key approval from China for its acquisition of Mellanox Technologies, despite concerns that Beijing could block the deal due to U.S.-China trade frictions.

Beijing’s approval set multiple conditions for Nvidia and the merged entity’s China operations, including prohibitions on forced product bundling, unreasonable trading terms, purchase restrictions and discriminatory treatment of customers who buy products separately.

The last time China launched an anti-monopoly probe into a high-profile foreign technology firm was in 2013 when it investigated Qualcomm’s local subsidiary for overcharging and abusing its market position in wireless communication standards.

Qualcomm later agreed to pay a fine of $975 million, which at the time was the largest China had ever handed out to a company. – Reuters

SEIPI sees flat export growth in ’25

The country’s electronic product exports account for 55% of its total exports in January to September 2024. — REUTERS

By Justine Irish D. Tabile, Reporter

PHILIPPINE EXPORTS of semiconductor and electronic products are likely to be flat in 2025 amid a slump in demand, the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) said.

SEIPI President Danilo C. Lachica said the board affirmed its earlier projection of a 10% decline in semiconductor and electronics exports this year.

“We just finished our board meeting last week. The 10% contraction forecast for 2024 is the same, while exports in 2025 are flat,” he said in a Viber message on Monday.

Mr. Lachica said exports will likely be flat in 2025 as the semiconductor and electronics industry is being affected by a “tough business environment and low demand.”

Exports of electronic products accounted for 55% of the Philippines’ total exports of $55.67 billion in the January-to-September period.

In the first nine months, the Philippines exported $30.6 billion worth of electronic products, falling 2.2% from the $31.28 billion a year ago amid soft demand.

Sought for comment, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the expected protectionist policies of US President-elect Donald J. Trump and trade wars could affect Philippine exports, including electronic products.

“Trump protectionist policies could lead to higher tariffs, and trade wars could slow down global trade and global economic or business activities,” said Mr. Ricafort in a Viber message.

In a report dated Nov. 25, GlobalSource country analysts Diwa C. Guinigundo and Wilhelmina C. Mañalac said that Mr. Trump’s plan of imposing 60% tariffs on Chinese goods and up to 20% tariffs on goods from other countries could hurt the Philippines’ exports to the US.

“The US is a major destination for Philippine exports, making up an average of about 16% of total export trade for the last five years,” the analysts said.

“While the share-to-total has slightly declined due to the trade diversification policy of the Philippine government in recent years, a further drop in exports to the US definitely does not bode well for the country,” they added.

Previously, Mr. Lachica said that the country will need more investments to improve its exports mix and make it more globally competitive.

“One of the comments I heard when we were in the US is that the Philippines fell asleep as far as the semiconductor and electronics industry is concerned, referring to the previous administrations,” he said in a panel discussion at the National Exporters Week on Dec. 4.

“In fact, we have significant capital flights from the electronics industry because of the incentive rationalization,” he added.

Mr. Lachica said the “good news” is that the Marcos administration is fixing the issues on incentive rationalization through the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE).

Mr. Marcos last month signed the Republic Act No. 12066 or CREATE MORE Act, which seeks to improve the country’s fiscal incentives policies.

The CREATE MORE Act extended the maximum duration of availment of tax incentives to 27 years from 17 years, as well as reduced corporate income tax for registered business enterprises.

Mr. Lachica said he recognized the government’s efforts to reduce the cost of power and logistics through the Luzon Economic Corridor.

The Luzon Economic Corridor is being undertaken via a trilateral agreement among the Philippines, US and Japan. It is part of a broader collaboration supported by the G7 Partnership for Global Infrastructure and Investment.

“So, we are very optimistic, at least from the industry perspective, to announce that the Philippines is back,” he said. “Of course there are some other issues that we need to face. But the ease of doing business has improved, the infrastructure is improving, and power is improving, so I think it is really a call to action [for our partners] to reconsider the Philippines.”

Marcos signs law on RCEF extension

President Ferdinand R. Marcos, Jr. signed three laws, including Republic Act No. 12078 which extends the Rice Competitiveness Enhancement Fund for six years, at a ceremony in Malacañang, Dec. 9. — YUMMIE DINGDING / PPA POOL

By John Victor D. Ordoñez, Reporter

PHILIPPINE President Ferdinand R. Marcos, Jr. on Monday signed into law a bill that will triple the state budget for rice competitiveness to P30 billion over six years, as his government tries to boost food security amid soaring prices.

He also enacted a measure that allows foreign tourists to claim refunds for purchases worth at least P3,000 (around $52) from state-accredited stores, as the Southeast Asian nation hopes to boost a tourism sector that was one of the slowest to recover from a coronavirus disease 2019 (COVID-19) pandemic.

Republic Act (RA) No. 12078, or the measure amending the Agricultural Tariffication Act, will increase the yearly funding for the Rice Competitiveness Enhancement Fund (RCEF) to P30 billion from P10 billion and extend its life until 2031.

“This will enable us to do much more for our farmers, ensuring that they have the resources that they need to succeed and to make the rice industry even more competitive,” Mr. Marcos said at the signing ceremony at Malacañang on Monday.

The P30-billion RCEF will be used to develop high-quality inbred rice seeds, distribute cash aid for farmers, and build solar-powered irrigation systems and composting facilities.

The measure also amends RA 11203 or the Rice Tariffication Law (RTL) of 2019 that opened up to private entities the rice import trade, which had previously been dominated by the National Food Authority (NFA), which imported the grain via government-to-government deals.

The private traders instead had to pay a tariff of 35% on rice imports. The government has since reduced tariffs to 15% and it applies to rice from all sources.

The amended law still bars the NFA from importing rice.

On the sidelines of the ceremony, Agriculture Secretary Francisco P. Tiu Laurel, Jr. told reporters the impact of the investments on the agriculture sector will be seen in one to two years.

“In the long run, it should lower the price of rice because if we can produce more through the increased budgets and extend the duration, it would be more efficient, and we will be producing more per hectare,” he said in mixed English and Filipino.

“The expanded RTL will include soil rehabilitation and additional yearly irrigation budget, since our main issues now are irrigation and mechanization.”

Under the law, the Department of Agriculture (DA) will oversee a database of grain warehouses and storage facilities and monitor the country’s rice reserves.

The DA will also be required to maintain a rice buffer fund of P5 billion during food security emergencies.

The NFA will also be allowed to sell rice buffer stocks through Kadiwa ng Pangulo rice centers in areas with rice shortages or extraordinary rice price increases.

The Federation of Free Farmers National Manager Raul Q. Montemayor said the government solely focusing on lowering rice prices could come at the expense of farmers.

“RCEF will become just another ‘pampalubag-loob (consolation)’ so that farmers will not complain if the government decides to lower tariffs or flood markets with cheap rice,” he said in a Viber message.

“It was intended for farmers to compensate them for loss of income arising from the lifting of quantitative restrictions on imports, and to help them lower their costs of production to make them more competitive and profitable.”

Rice tariff collections amounted to about P30 billion last year, according to the Bureau of Customs.

“It is very good that the President continues with the tariffication policy despite strong opposition, because it benefits the consumer,” Roehlano M. Briones, a senior research fellow at the Philippine Institute for Development Studies, said in a Viber message.

But he also cited the need for the government to review how extending and increasing the yearly funding for RCEF would affect spending on its national rice program.

“We need to boost and strengthen our support to local rice farmers to remove all the false narratives of our economic managers on the need to import and reduce tariffs meant to be provided to our rice farmers under this new law,” Samahang Industriya ng Agrikultura Executive Director Jayson H. Cainglet said in a Viber message.

VAT REFUND FOR TOURISTS
Also on Monday, Mr. Marcos signed RA No. 12079 or the Value-Added Tax (VAT) Refund Mechanism for Non-Resident Tourists Act, a priority measure aimed at incentivizing foreign tourists to spend more in the country.

Mr. Marcos said the measure is expected to boost tourist spending by 30%, which could benefit mostly the micro, small, and medium enterprises that sell Filipino products.

“These products tell our story, and now, with the VAT refund, they will be able to be more accessible to global consumers, elevating once again our statue in the global market,” the President said.

Under the new law, goods should be purchased by foreign visitors in person at accredited stores and should be taken out of the country within 60 days from the date of purchase.

The value of goods purchased per transaction was set at P3,000, but this can be adjusted by the Finance Secretary in consideration of the consumer price index.

“It is high time that the Philippines catches up with countries around the world that have long implemented a standard VAT refund system. This strategic initiative aims to encourage foreign tourists to spend more in our country, stimulating our domestic economy. With increased tourism spending, we will have higher revenues to collect, and we can create more jobs, raise incomes, and accelerate economic growth,” Finance Secretary Ralph G. Recto said.

In a statement, the Department of Finance (DoF) said foregone revenues from the law can be offset by higher tourism spending.

“Data from the DoF show savings from the refund fully channeled into additional tourism spending may boost economic output by P2.8 billion to P4 billion annually,” it said.

The World Travel and Tourism Council earlier projected that in the next decade the Philippine travel and tourism sector will raise its contribution to gross domestic product to P9.5 trillion a year or 22% of economic output.

In his speech, Mr. Marcos ordered the DoF and the Bureau of Internal Revenue to craft “simple, accessible, and culturally inclusive” implementing rules and regulations for the VAT refund system.

The new law will allow the refund process to be made electronically or in cash through operators that will be tapped by the DoF.

Senate President Francis Joseph “Chiz” G. Escudero said these incentives will entice more visitors to the Philippines.

“The tourism sector is a consistent contributor to our economy so an uptick in arrivals would provide a boost to our GDP and generate more jobs for our people,” he said in separate statement.

Based on data from the Labor department, the tourism sector employed 6.21 million Filipinos last year, which was 13% of the workforce.

Meanwhile, the President also signed into law RA No. 12080, or the Basic Mental Health and Well-Being Promotion Act, which will create new school counselor positions and task the departments of Budget and Management and Education to come up with comprehensive mental health programs.

“When our learners and school personnel are mentally healthy, academic performance improves, absenteeism decreases and a culture of compassion and understanding flourishes,” Mr. Marcos said.

Under the new law, Care Centers headed by school counselors will be established in every public basic education school to help students deal with stress management and other mental health concerns.

Inflation likely to settle within target this year

Crowds flock to Divisoria to look for bargains ahead of the holiday season. — PHILIPPINE STAR/RYAN BALDEMOR

PHILIPPINE headline inflation is expected to settle within the Bangko Sentral ng Pilipinas’ (BSP) 2-4% target band this year despite the slight uptick in November and the impact of recent typhoons on prices, Metropolitan Bank & Trust Co. (Metrobank) Research said.

“Despite the acceleration of prices in November, the latest inflation print is consistent with our forecast that inflation will remain below the 3% level in the last few months of 2024,” Metrobank Research said on Monday.

In November, headline inflation picked up to 2.5% year on year from 2.3% in October, but it was slower than 4.1% in the same month a year ago. This brought average inflation to 3.2% in the 11 months.

“The year-to-date inflation confirms that full-year inflation will likely settle within the 2-4% BSP target this year even with supply-side shocks brought by typhoons and geopolitical tensions,” Metrobank said.

A series of storms hit the Philippines in November, resulting in around P10 billion worth of agricultural damage according to the Department of Agriculture.

National Economic and Development Authority Secretary Arsenio M. Balisacan earlier said the series of typhoons likely had a “sharp” impact on fourth-quarter growth, particularly the agricultural sector.

Metrobank Research said inflation will still be “target consistent” until 2026.

It kept its average full-year forecast at 3.2% this year and in 2025, as it “expects higher demand-side pressure as the BSP continues to reduce policy rates.”

“We maintain our 3% full-year average forecast for 2026, barring any supply-side shocks,” Metrobank Research said.

The BSP expects inflation to average 3.1% this year, 3.2% in 2025, and 3.4% in 2026.

“Recent sentiments from BSP Governor Eli M. Remolona, Jr. suggest he retains his dovish stance, emphasizing that the Philippines is ‘still in the easing cycle’ and signaling the possibility of another cut in the December meeting,” Metrobank Research said.

“Moreover, the lower-than-expected gross domestic product (GDP) print in Q3 provides more reason for the BSP to deliver another 25-basis-point (bp) cut to further maintain momentum in consumption and investment growth.”

In the third quarter, GDP growth slowed to 5.2% from the revised 6.4% growth in the second quarter and 6% a year ago. This was also the weakest growth in five quarters or since the 4.3% expansion in the second quarter of 2023.

For the first nine months of the year, GDP growth averaged 5.8%, slower than the 6% print a year ago.

Economic managers last week revised its growth target range to 6-6.5% this year, narrower than the previous 6-7% goal.

“As the inflation projection continues to remain within target, Metrobank Research maintains its forecast of another 25-bp cut in the BSP’s meeting in December, bringing its year-end forecast for the Reverse Repurchase (RRP) rate to 5.75% in 2024,” it said.

BSP began its easing cycle with a 25-bp cut in August, followed by another 25-bp cut in October, bringing the benchmark rate to 6%.

The Monetary Board is set to have its final policy-setting meeting for the year on Dec. 19.

Metrobank also expects the RRP rate to settle at 5% by 2025 and 4.25% by 2026. — A.R.A.Inosante

PHL ranks second-most attractive emerging market for RE investment

A wind turbine is seen in this file photo. — REUTERS

By Sheldeen Joy Talavera, Reporter

THE PHILIPPINES ranked as the second-most attractive emerging market for renewable energy (RE) investment, according to the 2024 Climatescope report by BloombergNEF.

The Philippines climbed two spots to second spot out of 110 emerging markets in the 13th annual edition of the Climatescope report.

It received an overall score of 2.65 out of 5, based on three parameters: fundamentals, opportunities, and experience.

“The Philippines has been on a growth path since 2021, and for the first time has entered second place in the ranking, knocking mainland China down a slot,” according to the report by BloombergNEF, which is a strategic research provider covering global commodity markets.

This was the country’s highest ranking after placing fourth in 2023, 10th in 2022, and 20th place in 2021.

“The government has established a target of 35% renewable energy in power generation by 2030, and the Philippines stands out as the only emerging market in the Asia-Pacific region (APAC) to have all of the renewable energy policies surveyed by Climatescope — auctions, net-metering schemes, tax incentives and a clean energy target — in force,” BloombergNEF said.

India emerged as the most attractive emerging economy for the second year in a row with a score of 2.73 due to its “bold renewable energy target” and its ongoing efforts to achieve the goal.

The Philippines was ahead of China (2.61), Kenya (2.59) Romania (2.57), Brazil (2.54), Chile (2.51), Nigeria (2.51), Namibia (2.51), and Guatemala (2.50).

Investor interest in the Philippines’ renewable energy sector received a boost after the government allowed full foreign ownership in the sector starting November 2022.

Foreign nationals and foreign-owned entities are now allowed to explore, develop and use RE resources such as solar, wind, biomass, ocean or tidal energy in the Philippines. Foreign ownership of RE projects was previously limited to 40%.

According to the Climatescope report, the Philippines had a score of 3.83 on fundamentals, the highest among emerging markets. This measures the foundational mechanisms for renewable energy development in a market, including its clean energy policies, operating rules and incentives, and batteries to the deployment of investment.

In terms of opportunities, the Philippines ranked 8th with a score of 2.11. This parameter focuses on identifiable traits that mark a market’s attractiveness to investors.

Over the past five years, the Philippines has attracted $5.2 billion in RE investments, but only 7% of the total came from foreign investment, according to the report.

With the power demand increasing and the Philippine market still heavily reliant on fossil fuels, there is still a need to grow its renewable energy capacity, BloombergNEF said.

According to BloombergNEF, peak demand rose 63% from 2014 to 2023, reaching 19.2 gigawatt-peak in 2023.

The Department of Energy (DoE) said that the ranking reflects “the growing confidence of the global community in our country’s commitment to clean energy transition and sustainable growth.”

“This recognition inspires the DoE to further intensify its efforts in achieving our renewable energy goals, ensuring that our nation remains a global beacon of progress in the energy transition,” the department said in a statement on Monday.

While most of the RE investments are from domestic investors, the DoE said it is looking forward to realizing the potential of increased foreign participation as it allowed full foreign ownership in renewable energy projects.

“The journey, however, is far from over. With the peak demand growth assumptions of around 5.3% annually from 2024 to 2028, the need to further accelerate renewable energy development is still crucial to address the energy needs of the country’s expanding economy,” the agency said.

Asked to comment, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said that there are opportunities for RE investors in the Philippines.

“RE, especially solar and wind, also suitable for an archipelago such as the Philippines, especially off grid areas,” he said in a Viber message. “This is manifested by the fact that REs are the biggest foreign investments in recent years.”

As of November, the Board of Investments has approved a total of P1.5 trillion in investment pledges, of which P1.35 trillion are primarily in the renewable energy sector.

As of end October, a total of 17,248.53 megawatts (MW) of committed power projects and an additional 1,870 MW are expected to be operational from 2024 to 2030, including those with commercial operation dates that are yet to be determined by the power generators.

ERC approves Meralco’s RE power supply deals

RENEWABLE ENERGY is expected to account for 22% of Meralco’s supply portfolio by 2030. — PHILIPPINE STAR/RYAN BALDEMOR

THE ENERGY REGULATORY Commission (ERC) has approved Manila Electric Co.’s (Meralco) power supply agreements (PSAs), enabling the power distributor to meet its renewable energy (RE) supply requirement starting February next year.

The regulator granted provisional authority to Meralco to implement its power supply deals with San Roque Hydropower, Inc. (SRHI) and Gigasol3, Inc., according to a document posted on its website.

SRHI and Gigasol3 emerged among the winning bidders during the competitive selection process (CSP) conducted in July for Meralco’s 500-megawatt (MW) renewable energy supply requirement.

SRHI offered the lowest rate of P7.10 per kilowatt-hour (kWh) for 340 MW of the total requirement.

Gigasol submitted a rate of P8.1819 per kWh for 139 MW, while Santa Cruz Solar Energy, Inc. (SCSEI) covered the remaining 21 MW at a rate of P8.1998 per kWh.

All offers were below the P8.2380 per kWh reserve price set for the CSP.

SRHI, formerly known as Strategic Power Development Corp., is a subsidiary of San Miguel Global Power Holdings Corp., the power arm of San Miguel Corp. (SMC).

The SMC unit is the administrator of the 345-MW San Roque Hydroelectric Power Plant in Pangasinan.

Meanwhile, Gigasol3 owns, operates, manages, and maintains the Palauig Solar Power Plant in Zambales, and administers the output of the Alaminos Solar Power Plant in Laguna.

Gigasol 3 and SCSEI are subsidiaries of ACEN Corp. under the Ayala Group.

The ERC, however, approved a lower fixed rate for SRHI and Gigasol3 at P5.1908 per kWh “without any escalation or adjustment.”

“The rates provisionally approved by the Commission were based on average rate of other mid-merit supply to Meralco,” ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said in a Viber message.

“We need to further evaluate the higher rates in these PSAs (more than P8/kWh), as well as the reserve price set by Meralco, and these will all be covered in the final authority to be issued after evaluation,” she added.

The ERC has yet to release its decision on the power supply deal between Meralco and SCSEI.

The 10-year PSAs resulting from the CSP will cover Meralco’s 350-MW mid-merit requirement starting February 2025 and will increase by 150 MW starting February 2026.

Renewable energy is expected to account for 22% of Meralco’s supply portfolio by 2030.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

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