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Empowering Filipino businesses: PayMongo launches Soundbox to elevate in-store payment solutions

PayMongo, a leading digital financial service for Filipino entrepreneurs, announces the launch of its latest innovation: the PayMongo Soundbox.

This in-store payment device is designed to make quick response (QR) payments more seamless and accessible for businesses of all sizes, helping merchants streamline operations and offer cashless transactions tailored to the everyday habits of Filipino consumers.

With the Soundbox, PayMongo introduces a new way for merchants to accept digital payments confidently. The device provides real-time, audible notifications for successful transactions, eliminating doubts about payment status and reassuring merchants and customers.

This makes it especially effective in high-traffic environments like supermarkets, convenience stores, restaurants, and retail shops, where quick and smooth payment processing is essential to delivering great customer experience.

Simplifying digital payments for Filipino market

As the first fintech company in the Philippines to launch such a solution, PayMongo builds on its expertise to enable thousands of merchants to succeed in the digital economy.

The Soundbox leverages the experience gained from similar successful deployments in India by platforms like PayTM, Google Pay, and PhonePe, allowing PayMongo to introduce a consumer-friendly product, and encouraging more Filipino businesses to adopt QR payments over cash.

“Our mission is to empower growing businesses with reliable, scalable solutions aligned with customer behavior,” said Jojo Malolos, CEO of PayMongo. “With the Soundbox, we’re providing merchants with the tools to accept payments more efficiently and focus on what truly matters — offering an exceptional customer experience. 

Supporting Growth and Scalability for SMEs

Designed to handle high transaction volumes effortlessly, the Soundbox provides scalability for fast-growing small and medium-sized enterprises (SMEs).

Its ability to automate payment confirmation helps reduce operational complexity, freeing business owners to focus on scaling operations rather than daily transactional concerns.

Through this launch, PayMongo strengthens its commitment to empowering Filipino businesses with solutions that foster growth and operational efficiency.

Whether a business is transitioning from traditional cash-based systems to digital payments or looking to scale operations with advanced tools, the Soundbox is a powerful enabler in shifting toward a digital-first economy.

Leader in payment innovation

PayMongo’s introduction of the Soundbox underscored its leadership in the fintech space, providing merchants with the edge needed to thrive in a competitive market.

As the first mover in the Philippines, PayMongo continues to create meaningful partnerships and opportunities for businesses ready to embrace secure, cashless payments as a key to their growth.

 

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China says it respects America’s choice, congratulates Trump

RAWPIXEL

BEIJING/HONG KONG, Nov 7 (Reuters) – China expressed respect for the U.S. election result and congratulated Donald Trump on his victory, and an official newspaper called for a “pragmatic” approach to bilateral differences as U.S. tariff threats loomed.

Trump, a Republican who has promised to implement stiff tariffs, recaptured the White House with a sweeping victory over Democrat Kamala Harris in Tuesday’s election. He will take office in January.

“We respect the choice of the American people and congratulate Mr. Trump on his election as president,” a Chinese foreign ministry spokesperson said in a statement late on Wednesday.

China-U.S. relations have been fraught for years, notably around trade and security including Taiwan and the South China Sea.

Mr. Trump’s win could revive issues from his 2017-2021 first presidency, when he started a trade war with the world’s second-largest economy and imposed tariffs.

Chinese state-run newspaper China Daily in an editorial on Wednesday portrayed Mr. Trump’s second presidency as a potential “new beginning in China-U.S. relations if the chance that has been offered is not wasted.”

The Biden administration did not dismantle Mr. Trump’s trade policies and continued to target China’s state-driven industrial practices.

In September, it locked in steep tariff hikes on Chinese imports, including a 100% duty on electric vehicles, 50% on solar cells and 25% on steel, aluminum, EV batteries and key minerals, in a bid to protect strategic American industries.

The next U.S. administration can strengthen dialogue and communication with China to handle differences, China Daily said.

But a threat by Mr. Trump to impose 60% tariffs on U.S. imports of Chinese goods poses major growth risks for China.

Not only are the threatened tariffs much higher than the 7.5%-25% levied on China during Trump’s first term, the Chinese economy is also in a much more vulnerable position as it faces a steep property downturn, burdensome local government debt and weak domestic demand.

U.S. policies and “misconceptions” towards China have posed significant challenges for relations, China Daily said.

“A pragmatic approach to bilateral relations is essential in navigating the complexities of global challenges.”

The proper handling of China-U.S. relations, which the newspaper called the world’s most important bilateral relationship, “not only serves the common interests of both countries but also will inject greater certainty and stability into the world.” – Reuters

2024 will be world’s hottest on record, EU scientists say

VECTORJUICE-FREEPIK

BRUSSELS – This year is “virtually certain” to eclipse 2023 as the world’s warmest since records began, the European Union’s Copernicus Climate Change Service (C3S) said on Thursday.

The data was released ahead of next week’s U.N. COP29 climate summit in Azerbaijan, where countries will try to agree a huge increase in funding to tackle climate change. Donald Trump’s victory in the U.S. presidential election has dampened expectations for the talks.

C3S said that from January to October, the average global temperature had been so high that 2024 was sure to be the world’s hottest year – unless the temperature anomaly in the rest of the year plunged to near-zero.

“The fundamental, underpinning cause of this year’s record is climate change,” C3S Director Carlo Buontempo told Reuters.

“The climate is warming, generally. It’s warming in all continents, in all ocean basins. So we are bound to see those records being broken,” he said.

The scientists said 2024 will also be the first year in which the planet is more than 1.5C hotter than in the 1850-1900 pre-industrial period, when humans began burning fossil fuels on an industrial scale.

Carbon dioxide emissions from burning coal, oil and gas are the main cause of global warming.

Sonia Seneviratne, a climate scientist at public research university ETH Zurich, said she was not surprised by the milestone, and urged governments at COP29 to agree stronger action to wean their economies off CO2-emitting fossil fuels.

“The limits that were set in the Paris agreement are starting to crumble given the too-slow pace of climate action across the world,” Ms. Seneviratne said.

Countries agreed in the 2015 Paris Agreement to try to prevent global warming surpassing 1.5C (2.7 degrees Fahrenheit), to avoid its worst consequences.

The world has not breached that target – which refers to an average global temperature of 1.5C over decades – but C3S now expects the world to exceed the Paris goal around 2030.

“It’s basically around the corner now,” Mr. Buontempo said.

Every fraction of temperature increase fuels extreme weather.

In October, catastrophic flash floods killed hundreds of people in Spain, record wildfires tore through Peru, and flooding in Bangladesh destroyed more than 1 million tons of rice, sending food prices skyrocketing. In the U.S., Hurricane Milton was also worsened by human-caused climate change.

C3S’ records go back to 1940, which are cross-checked with global temperature records going back to 1850. – Reuters

New Zealand’s government introduces bill to reinterpret founding document

KERIN GEDGE-UNSPLASH

New Zealand’s center-right government on Thursday introduced a bill aimed at reinterpreting the country’s founding agreement, triggering protests by Indigenous Maori groups who said it would undermine their rights.

The Treaty of Waitangi, first signed in 1840 between the British Crown and more than 500 Maori chiefs, lays down how the two parties agreed to govern. The interpretation of clauses in this document guide legislation and policy today.

Associate Justice Minister David Seymour said the purpose of the Treaty Principles Bill is for Parliament to define the principles of the treaty, provide certainty and clarity, and promote debates on its place in constitutional arrangements.

“The principles of the Treaty are not going anywhere. Either Parliament can define them, or the courts will continue to meddle in this area of critical political and constitutional importance,” Seymour said in a statement.

The legislation is a policy of Seymour’s ACT New Zealand party, which garnered 8.6% of the party vote at the 2023 election.

ACT has criticized the sharing of some governance matters between the state and Maori, arguing non-Indigenous citizens are losing out because of policies designed to uplift Maori, who make up about 20% of the country’s 5.3 million people.

Coalition partners, the National Party and New Zealand First, has agreed to support the legislation through the first of three readings but have said they will not support it to become legislation. The first reading is scheduled next week.

Protesters marched in Auckland, New Zealand’s biggest city, holding signs reading “Shame” and “Equality”, and gathered outside Seymour’s office, while a small group converged outside the parliament in the national capital of Wellington.

Maori leaders described the government’s move to introduce the bill more than a week earlier than expected and without consulting them as “dishonorable”, New Zealand media reported.

Prime Minister Christopher Luxon said it was not unusual to move the bill earlier as the government was aiming to submit several pieces of legislation before Christmas.

“It was drafted and the legislation was ready to go. We move legislation around all the time and so it’s not unusual at all,” Mr. Luxon told reporters. – Reuters

Australia proposes ban on social media for children under 16

ARPAD CZAPP-UNSPLASH

SYDNEY – Australia Prime Minister Anthony Albanese said on Thursday the government would legislate for a ban on social media for children under 16, a policy the government says is world-leading.

Australia is trialing an age-verification system to assist in blocking children from accessing social media platforms, as part of a ban that could come into force as soon as the end of next year.

“Social media is doing harm to our kids and I’m calling time on it,” Mr. Albanese told a news conference.

Mr. Albanese cited the risks to physical and mental health of children from excessive social media use, in particular the risks to girls from harmful depictions of body image, and misogynist content aimed at boys.

“If you’re a 14-year-old kid getting this stuff, at a time where you’re going through life’s changes and maturing, it can be a really difficult time and what we’re doing is listening and then acting,” he said.

Legislation will be introduced into parliament this year, with the laws coming into effect 12 months after being ratified by lawmakers, he added.

The opposition Liberal Party has expressed support for a ban.

There will be no exemptions for children who have parental consent, or who already have accounts.

“The onus will be on social media platforms to demonstrate they are taking reasonable steps to prevent access,” Albanese said. “The onus won’t be on parents or young people.”

Communications Minister Michelle Rowland said platforms impacted would include Meta Platforms’ Instagram and Facebook, as well as Bytedance’s TikTok and Elon Musk’s X. Alphabet’s GOOGL.O YouTube would likely also fall within the scope of the legislation, she added.

TikTok declined to comment, while Meta, Alphabet and X did not respond to requests for comment.

A number of countries have already vowed to curb social media use by children through legislation, though Australia’s policy is one of the most stringent.

France last year proposed a ban on social media for those under 15, though users were able to avoid the ban with parental consent.

The United States has for decades required technology companies to seek parental consent to access the data of children under 13, leading to most social media platforms banning those under that age from accessing their services. – Reuters

 

Trump win to test limit of presidential power; Harris concedes but vows to ‘fight’

RAWPIXEL.COM

PALM BEACH, Florida/WASHINGTON – Donald Trump recaptured the White House with a sweeping victory on Wednesday as tens of millions of Americans looked past his criminal charges and divisive rhetoric to embrace a leader who, if he carries out his campaign promises, will test the limits of presidential power.

Mr. Trump, 78, clinched Tuesday’s election after a polarizing and dizzying campaign marked by two attempts on his life and Kamala Harris‘ late entry into the race following President Joe Biden’s surprise withdrawal.

In a concession speech at her alma mater Howard University on Wednesday afternoon, Harris sought to console the voters who had hoped she would become the first woman to win the White House.

“To everyone who is watching, do not despair,” she said. “This is not a time to throw up our hands. This is a time to roll up our sleeves.”

Ms. Harris said she had called Mr. Trump to congratulate him and promised to aid his transition. But she was not prepared to embrace his vision for the country.

“While I concede this election, I do not concede the fight that fueled this campaign,” she said, as some supporters in the crowd shed tears. “The fight for freedom, for opportunity, for fairness and the dignity of all people.”

Mr. Biden planned to address the nation at 11 a.m. EST (1600 GMT) on Thursday. The White House said Biden was committed to a smooth transition between now and Trump’s inauguration on Jan. 20.

Mr. Trump’s campaign said Mr. Biden called Mr. Trump to congratulate him and invite him to a meeting at the White House at an unspecified time.

Mr. Trump’s resounding victory underscored how disenchanted Americans had become with the economy, border security and the direction of the country and its culture. Voters demanded a change, even if the agent of change was a convicted felon twice impeached and no longer the Washington outsider he was in his 2016 campaign.

Mr. Trump has said he wants the authority to fire civil servants he views as disloyal and has vowed to use federal law enforcement agencies to investigate or prosecute perceived enemies, including political rivals.

Mr. Trump promised roles in his administration to Tesla CEO Elon Musk, the world’s richest man and a prominent Trump donor, and former presidential candidate Robert F. Kennedy Jr.

Mr. Musk contributed at least $119 million to a pro-Trump spending group, giving him extraordinary influence to help his companies secure favorable government treatment.

The outcome defied polls that showed a razor-close race ahead of Tuesday’s Election Day. Mr. Trump prevailed in at least five of the seven battleground states to push him over the 270 Electoral College votes needed to win the presidency and was leading in the remaining two, Arizona and Nevada, where votes were still being tallied.

Mr. Trump was also on track to become the first Republican presidential candidate to win the popular vote since George W. Bush two decades ago.

His fellow Republicans wrested control of the U.S. Senate from Democrats and had added to their narrow majority in the U.S. House of Representatives, though the outcome there may not be known for several days with dozens of races still uncalled.

“It was a hell of a good day,” said Mitch McConnell, the longtime Senate Republican leader.

Unified Republican control on Capitol Hill would clear the way for major portions of Trump’s legislative agenda, as it did in the first two years of his 2017-2021 presidency when Republicans whipped a major tax-cut bill through Congress that mainly benefited the wealthy.

“America has given us an unprecedented and powerful mandate,” Mr. Trump said early on Wednesday to a roaring crowd at the Palm Beach County Convention Center in Florida.

Major stock markets around the world rallied following Mr. Trump’s victory, and the dollar was set for its biggest one-day jump since 2020.

 

OVERCOMING ODDS

Mr. Trump was elected despite persistently low approval ratings, four criminal indictments and a civil judgment against him for sexual abuse and defamation. In May, Mr. Trump became the first former U.S. president to be convicted of a crime when a New York jury found him guilty on 34 felony counts of falsifying business records to cover up hush money paid to a porn star.

Mr. Trump’s political career appeared over after his false claims of election fraud led a mob of supporters to storm the U.S. Capitol on Jan. 6, 2021, in a failed bid to overturn his 2020 defeat. His efforts to reverse his defeat led to two separate indictments, though all the criminal cases against him are expected to end after his victory.

Mr. Trump swept away challengers inside his party and then beat Harris by capitalizing on voter concerns about high prices and what Trump claimed falsely was a rise in crime due to illegal immigration.

Mr. Trump’s win will have major implications for U.S. trade and climate change policies, Americans’ taxes and immigration, and U.S. foreign policy, including in the Middle East and Ukraine.

Israeli Prime Minister Benjamin Netanyahu congratulated Mr. Trump, and they discussed “the Iranian threat” and the need to work together for Israel’s security, Mr. Netanyahu’s office said.

Hamas, the Palestinian militant group, called for an end to the “blind support” for Israel from the United States.

Ukrainian President Volodymyr Zelenskiy welcomed Trump’s commitment to “peace through strength,” while the Kremlin said it would wait and see if his victory could help end the war in Ukraine more quickly. Mr. Trump had said he could end the war in 24 hours but has not offered a detailed plan.

Mr. Trump’s tariff proposals could spark a fiercer trade war with China and U.S. allies, while his pledges to reduce corporate taxes and implement a spate of new cuts could balloon U.S. debt, economists say.

“We respect the choice of the American people and congratulate Mr. Trump on his election as president,” a Chinese foreign ministry spokesperson said in a statement late on Wednesday.

Mr. Trump also held a call with South Korean President Yoon Suk Yeol in which they pledged to meet soon and shared concerns over North Korea’s deployment of troops backing Russia in the war against Ukraine and Pyongyang’s continued military provocations, a Yoon aide said. Mr. Yoon later told reporters his government will work with the Trump administration to build a “perfect” security partnership.

A second Trump presidency could drive a bigger wedge between Democrats and Republicans on issues such as immigration, race, gender and reproductive rights.

Mr. Trump has promised to launch a mass deportation campaign targeting immigrants in the country illegally.

Hispanics, traditionally Democratic voters, and lower-income households hit hardest by inflation helped fuel the victory.

Mr. Trump’s support among women, whose backing Democrats had counted on, improved from four years ago. And his loyal base of rural, white and non-college educated voters again showed up in force, according to Edison Research exit polls. – Reuters

Philippines GDP year on year growth slows to 5.2% in Q3

PHILIPPINE STAR/RUSSELL PALMA

MANILA – The Philippine economy grew 5.2% in the third quarter from a year earlier, the statistics agency said on Thursday, coming in below forecasts and slowing from the annual pace in the previous quarter.

Economists polled by Reuters had expected gross domestic product (GDP) to expand by 5.7% from a year earlier. Growth in the second quarter was revised up to 6.4%.

On a quarter-on-quarter basis, GDP grew 1.7% in July-September, compared with economists’ expectations for a 1.5% rise and the prior quarter’s 0.5% increase.

The Philippine government is targeting growth of 6.0% to 7.0% this year. — Reuters

The Rhetoricians’ ‘Powerhouse’ is set to make its comeback this November 2024

After 19 years of service, The Rhetoricians: The UPLB Speech Communication Organization continues to commit itself to training its members and constituents to be paragons of excellence and ethical communicators through various initiatives.

One of which is the highly anticipated Powerhouse 2024, which will be conducted face-to-face for the first time since 2019. Powerhouse is the organization’s annual public forum led by experts in communication that addresses a wide range of topics that recognize the importance of ethical communication and providing information to the masses.

With the upcoming 2025 elections, the theme of this year’s forum is The Power of Voices in the Digital Age. It will focus on empowering young voices in engaging in responsible voting amidst the digital era wherein misinformation and disinformation continue to spread like wildfire through digital platforms.

This year’s esteemed speakers are Mona Magnu-Veluz, also known as Mighty Magulang, and Hon. Raoul Danniel Abellar Manuel.

Mighty Magulang serves as the National Spokesperson of the Autism Society Philippines (ASP) and the concurrent Country Manager for the ASP Autism Works economic empowerment program, but she is better known for her videos containing historical and genealogical facts about Philippine history on her TikTok account with over 600,000 followers. Hon. Raoul Danniel Abellar Manuel, also known as Rep. Raoul Manuel, is a member of the House of Representatives for Kabataan Partylist, advocating as the sole voice for the youth in Congress. He is also an active member of the ASEAN Parliamentarians for Human Rights, the Philippine Legislators Committee on Population and Development, and Parliamentarians for a Fossil-Fuel-Free Future.

Powerhouse 2024: The Power of Voices in the Digital Age will be held on the 14th of November 2024 from 2:00 p.m. to 4:00 p.m. at the Rural Economic Development and Renewable Energy Center (REDREC) Auditorium, UP Los Baños.

For partnerships and event sponsorship inquiries, contact Gabriel Nafura at 0947-324-3283 or email The Rhetoricians at therhetoriciansuplb.powerhouse@gmail.com. For tickets and more information about Powerhouse 2024, follow our Facebook and Instagram pages: @TheRhetoricians.

Agricultural output slumps in Q3

Wet palay is being dried on the street in Bula, Camarines Sur, Oct. 26, 2024. — PHILIPPINE STAR/NOEL B. PABALATE

By Luisa Maria Jacinta C. Jocson, Reporter

THE PHILIPPINES’ agricultural production plunged by 3.7% in the third quarter, the steepest decline in nearly four years, the statistics authority said on Wednesday.

Data from the Philippine Statistics Authority (PSA) showed the value of production in agriculture and fisheries at constant 2018 prices fell by 3.7% to P397.43 billion in the July-to-September period. This was worse than the 0.2% decline in the same period a year ago.

This was also the biggest drop in farm output since the 3.8% contraction in the fourth quarter of 2020.

Performance of Philippine AgricultureIn the first nine months, agricultural output shrank by 2.2%, a reversal of the 0.2% growth a year prior.

“This was attributed to the reductions in the values of crops, livestock and fisheries production,” the PSA said.

The Department of Agriculture (DA) in a statement said the lower farm production was due to adverse weather and the lingering impact of African Swine Fever (ASF).

Broken down, crops production slid by 5.1% in the quarter ending-September, worsening from the 0.2% drop a year earlier. Crops accounted for more than half or 53.2% of the total farm output.

In the January-September period, the value of production in crops slid by 4.6%, reversing the 0.9% increase a year earlier.

“Undeniably, the combined effects of El Niño and La Niña weighed down palay production, a major contributor to the crop sector, which accounts for more than half of the value of agricultural and fisheries output,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. said.

Palay (unmilled rice) production primarily contributed to this decline, plunging by 12.3% in the third quarter.

PSA data showed sugarcane plummeted by 83.8% during the July-to-September period. Lower output was also seen in mango (-11.2%), ampalaya (-5.6%), rubber (-4.6%), cassava (-3.9%), banana (-1.1%), pineapple (-0.4%), and coconut (-0.1%).

“On the other hand, the value of corn production was 1.3% higher than last year’s same quarter level,” it added.

Meanwhile, livestock production, which accounted for 15.5% of the total, fell by 6.7% in the third quarter. This was a reversal of the 2.5% expansion a year ago.

The value of livestock output dropped by 3.5% in the first nine months from the 2.4% growth in the previous year.

This as hog production slumped by 8% in the third quarter, reversing the 3.3% expansion a year ago.

“There were also more livestock hit by the ASF this third quarter compared to the quarter a year ago,” Samahang Industriya ng Agrikultura Executive Director Jayson H. Cainglet said in mixed English and Filipino.

The latest bulletin from the Bureau of Animal Industry showed there are active ASF cases in 108 municipalities across 25 provinces as of Oct. 18.

There was also a drop in the value of production for goat (-4.1%) and carabao (0.5%). On the other hand, higher production was seen for dairy (6%) and cattle (0.9%).

Meanwhile, fisheries production declined by 5.5% in the third quarter, although improving from the 6.1% contraction in the same period in 2023.

Fisheries accounted for 14% of the agriculture sector’s total production in the quarter.

In the nine-month period, the value of fisheries output dipped by 0.9%, improving from the 7% contraction a year ago.

Double-digit declines were recorded for grouper or lapu-lapu (-31.9%), big-eyed scad or matangbaka (-23%), fimbriated sardines or tunsoy (-18.9%), Indian mackerel or alumahan (-18.8%); yellowfin tuna or tambakol (-18.6%), round scad or galunggong (-17.2%), tiger prawn or sugpo (-16.7%), mudcrab or alimango (-14.8%), slipmouth or sapsap (-14.7%); and  squid or pusit (-11.9%).

Production likewise declined for frigate tuna or tulingan (-7.5%), milkfish or bangus (-6.9%), Bali Sardinella or tamban (-6.7%), cavalla or talakitok (-4.6%), tilapia (-4.2%), and seaweed (-1.5%).

“The fisheries subsector also suffered from the adverse weather,” the Agriculture department said.

Mr. Cainglet said there were more typhoons this year compared to last year.

A number of storms and typhoons struck the country in the third quarter, resulting in significant agricultural damage.

These include the combined effects of southwest monsoon and Typhoon Carina (P4.73 billion), Severe Tropical Storm Enteng (P3.77 billion), and the combined effects of the enhanced southwest monsoon and tropical cyclones Ferdie, Gener, and Helen (P1.09 billion), according to DA estimates.

LONE BRIGHT SPOT
Meanwhile, poultry was the only sector to post gains in the third quarter. Poultry production grew by 5.8%, faster than the 2.9% in the same period a year ago.

Poultry output expanded by 6.8% in the January-September period from 2.5% a year earlier. It accounted for 17.3% of the total value of agricultural production.

Growth was seen for chicken eggs (6.6%) and chicken (6%), while declines were seen in duck eggs (-5.7%) and duck (-3.2%).

Federation of Free Farmers National Manager Raul Q. Montemayor said that the contraction in overall farm output was also due to the sector’s vulnerability to shocks.

“While we can point to weather disturbances and animal diseases for the decline in output, it also reflects the low level of resiliency and vulnerability of the sector to external forces,” he said.

“The output decline was due mainly to a reduction in the volume, which was not able to offset a general upswing in prices,” he added.

Mr. Cainglet said that farmgate prices of palay and hog have continued to be low due to over importation and reduced tariffs. “Even the farmgate price of chicken, despite the growth, is below cost of production. The farmgate price of chicken is at P90 per kilo,” he added.

The executive order slashing tariffs on rice imports to 15% until 2028 took effect in July.

Mr. Tiu Laurel said the government is working on measures to support the sector, such as continuing to develop a vaccine for ASF.

“We’re implementing changes to the rice cropping calendar and building infrastructure like water impounding dams to mitigate the impact of climate change on the farming sector,” he added.

The DA is targeting 1-2% agricultural growth this year.

The agriculture sector typically accounts for about a tenth of the country’s gross domestic product (GDP). It also provides about a quarter of all jobs.

The PSA is scheduled to release third-quarter GDP data today (Nov. 7).

September trade deficit widest in 20 months

Container vans are seen in the port area in Manila. — PHILIPPINE STAR/RYAN BALDEMOR

By Aubrey Rose A. Inosante, Reporter

THE PHILIPPINES’ trade-in-goods deficit ballooned to $5.09 billion in September, the biggest trade gap in 20 months, the Philippine Statistics Authority (PSA) said on Wednesday.

Preliminary data from the PSA showed the trade-in-goods balance — the difference between exports and imports — stood at a $5.09-billion deficit in September, up by 43.4% from $3.55-billion gap a year ago.

Month on month, the trade gap rose by 15.81% from $4.39 billion in August.

Philippine Merchandise Trade Performance (September 2024)

The country’s balance of trade in goods has been in the red for 112 straight months (over nine years) since the $64.95-million surplus recorded in May 2015.

In September, exports declined 7.6% to $6.26 billion from $6.77 billion a year ago. This was the biggest drop since June.

For the first nine months, exports rose by 1.1% to $55.67 billion.

The Development Budget Coordination Committee (DBCC) expects 5% growth in exports this year.

On the other hand, the value of imports went up by an annual 9.9% to $11.34 billion in September from $10.32 billion in the same period last year.

In the nine-month period, imports inched up by 0.6% to $95.07 billion. This is below the DBCC’s target of 2% growth in imports for the year.

ELECTRONICS EXPORTS
Among the major types of goods, exports of manufactured goods fell by 11.1% year on year to $4.95 billion in September, followed by mineral products ($645.24 million) and agro-based products ($492.62 million). Manufactured goods accounted for 79.2% of the total exports in September.

By commodity group, electronic products was still the country’s top exports in September with $3.15 billion, down 23.1% from $4.09 billion a year ago.

Semiconductor exports, which accounted for the majority of electronic goods, dropped by 30.6% to $2.31 billion in September.

Exports of other manufactured goods increased by 73.7% to $506.69 million, while other mineral products rose by 16.2% to $330.23 million in September.

The United States remained the top destination of Philippine-made goods, with exports valued at $1.08 billion. This accounted for 17.3% of total exports in September.

Hong Kong was the second-biggest market with an export value of $867.42 million (13.9% share), followed by Japan with $847.47 million (13.5%), China with $830.36 million (13.3%), and South Korea with $318.50 million (5.1%).

Other top export destinations include Thailand, the Netherlands, Germany, Singapore, and Taiwan.

IMPORTS
By type of goods, imports of raw materials and intermediate goods increased by 19.5% to $4.33 billion in September, while capital goods inched up by 1.4% to $3.03 billion and consumer goods rose by 20.6% to $2.56 billion.

In terms of value, electronic products had the highest import value at $2.4 billion in September, up by 8.9% from last year. It made up 21.2% of the total imports in September.

Imports of mineral fuels, lubricants, and related materials slipped 11.4% year on year to $1.36 billion in September, while transport equipment also fell by an annual 3.1% to $1.12 billion.

In September, China was the biggest source of imports valued at $2.84 billion, which made up 25% of the total import bill.

This was followed by Indonesia with $1.09 billion (9.6%), Japan with $837.75 million (7.4%), South Korea with $784.65 million (6.9%), Thailand with $735.58 million (6.5%) and the United States with $6.298 million (6.7%).

GlobalSource Country Analysts Diwa C. Guinigundo said that the widening trade deficit was due to sluggish exports.

“We are strong in imports, but our exports are not doing very well precisely because the global economy was also not doing very well,” he said in a phone call interview.

“Exports declined because the global economy is not exactly robust, while our imports were driven by the demand for imports of capital goods, raw materials and intermediate products, as well as consumer imports like oil, cars,” he added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the increase in imports was also due to a stronger peso.

The peso closed at P56.03 per dollar at end-September, strengthening from the P56.111 finish at end-August.

For the coming months, Mr. Ricafort said that the weakening peso would “make imports more expensive from the point of view of local buyers, but would make exports more price competitive from the point of view of foreign buyers.”

“Increased demand other economic activities during the Christmas holiday season would help spur more imports/production activities and export sales,” Mr. Ricafort said.

Unemployment rate falls to 3.7% in September

People submit their applications at a job fair in Manila. The jobless rate fell to 3.7% in September, the statistics agency said. — PHILIPPINE STAR/EDD GUMBAN

By Chloe Mari A. Hufana, Reporter

THE PHILIPPINES’ unemployment rate fell to 3.7% in September, driven in part by a growing number of female workers joining the labor force ahead of the holiday season, the statistics agency said on Wednesday.

Preliminary data from the Philippine Statistics Authority’s (PSA) Labor Force Survey showed the jobless rate dropped to 3.7% in September from 4% in August and 4.5% in September last year.

This translated to 1.89 million unemployed Filipinos in September, down by 177,000 from August and by 370,000 from a year earlier.

Philippine Labor Force Situation

Despite the lower jobless rate, underemployment rose to 11.9% in September from 11.2% in August and 10.7% in September last year.

The number of underemployed Filipinos — those who want longer work hours or an additional job — increased by 831,000 to 5.94 million in September from 5.11 million a year ago.

In the first nine months of the year, the unemployment rate averaged 4%, lower than the 4.6% average a year ago.

PSA data showed the employment rate went up to 96.3% in September from 95.5% a year ago. This is equivalent to 49.87 million employed Filipinos, up by 2.2 million from 47.67 million in September 2023.

In September, the labor force participation rate (LFPR) increased to 65.7% in September, from 64.1% a year ago. This translates to a labor force of 51.77 million in September, up 1.84 million from 49.93 million a year ago.

Undersecretary and National Statistician Claire Dennis S. Mapa said 1.34 million of these new workers were women.

“In [the number of] employed persons year on year, the majority here are actually female workers,” he told a news briefing in mixed English and Filipino.

He noted there has been a steady increase in female workers for the past three months.

The LFPR among female Filipino workers rose to 55.7% in September from 53.4% a year ago. For male workers, the rate also rose to 75.6% from 74.7% a year ago.

“By and large, more and more women and youth are entering the labor force. This bodes well for our economic outlook as more Filipinos see increasing job opportunities. As the holiday season approaches, we expect more employment available in retail trade as well as accommodation and food services,” Finance Secretary Ralph G. Recto said in a statement.

Of the 883,000 new employees seen in September, the bulk or 802,000 were youth, bringing the youth employment rate to 90%.

National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said the government will continue to implement supply-side and demand-side interventions to ensure the government will hit quality employment targets.

“The government is urgently addressing the constraints to high-quality job creation and collaborating with the private sector to capacitate our workers with the right skills and competencies simultaneously,” he added.

Mr. Balisacan said the NEDA is also working to finalize the Trabaho Para sa Bayan Plan, a 10-year roadmap to encourage investments in priority sectors, improve the employability of the current and future workforce, and enhance labor market governance for the next decade.

DECLINING JOBS
By industry, the services sector continued to employ the largest number of Filipinos with 31.31 million workers in September.

This was followed by the agriculture sector, which employed 9.48 million, and the industry sector with 8.56 million workers.

Meanwhile, the administrative and support service activities industry gained the biggest number of new employees year on year with 735,000.

Service activities added 559,000 workers year on year, followed by wholesale and retail trade; repair of motor vehicles and motorcycles with 486,000 and public administration and defense with 333,000.

The manufacturing sector added 200,000 jobs year on year in the third quarter.

On the other hand, accommodation and food service activities had the biggest annual decrease in jobs with 242,000, followed by agriculture and forestry (210,000), fishing and aquaculture (136,000) and construction (87,000).

On average, employed Filipinos worked 40.3 hours a week, slightly lower than the 40.7 hours in August and 40.8 hours in September 2023.

University of the Philippines School of Labor and Industrial Relations Assistant Professor Benjamin B. Velasco said the September unemployment and underemployment data implies that “more people entered the labor force but found part-time or temporary jobs only.”

“This is revealed in the rise in LFPR but lower average hours of work per week along with an increase in people wanting more hours of work,” he said in a Facebook Messenger chat.

“This can mean a greater number of young people employed in freelance work like virtual assistants, internet-based tasks, or delivery riders as shown in the comparative increases in sub-sectors like admin and support services and other service activities,” he added.

University of the Philippines Baguio economics instructor Edgar Antonio C. Suguitan said the underemployment trend reflects the precarious nature of employment in the country.

“It is a sign of a weakness of the economy because the economy does not have the capacity to accommodate a growing labor force,” he told BusinessWorld in a Facebook Messenger chat.

“Rampant in the labor market is this employment ‘flexibility’ as many workers are given temporary contracts,” he added.

Federation of Free Workers (FFW) President Jose Sonny G. Matula sounded the alarm over the rise in underemployment, which he said suggested workers’ incomes are insufficient to meet basic needs, driving them to seek more jobs to survive.

“This financial strain has potential health consequences for workers who are compelled to work longer hours or multiple jobs simply to make ends meet,” he told BusinessWorld in a Viber chat.

He said the decline of employment in the wholesale and retail, construction, human health, and social work activities sectors was concerning.

“While the rise in overall employment indicates resilience in certain areas of the economy, the downturn in these key sectors highlights underlying vulnerabilities,” he said.

PSA data showed wholesale and retail trade lost 597,000 workers month on month. Followed by 284,000 in construction and 177,000 in human health and social work activities.

The labor group leader said wholesale and retail are “traditionally a cornerstone for job creation.” Its decline in workers could potentially impact small businesses and consumer activity, he added.

Inflation likely to remain within 2-4% target range in coming months

PHILIPPINE STAR/RYAN BALDEMOR

HEADLINE INFLATION is seen to remain within the Bangko Sentral ng Pilipinas (BSP) 2-4% target in the coming months despite the uptick in October, analysts said.

“Yes, headline inflation did accelerate year on year, but we don’t think there is any reason to worry,” HSBC economist for ASEAN Aris D. Dacanay said in a report.

“In fact, price pressures were relatively (and fortunately) benign, considering how supply conditions weren’t favorable due to the typhoons in late September,” he added.

Headline inflation picked up to 2.3% in October from 1.9% in September but slowed from 4.9% a year ago.

This brought average inflation in the 10-month period to 3.3%, still within the BSP’s 2-4% target but above the 3.1% full-year forecast.

Mr. Dacanay said he expects inflation to average below 3% well into 2025.

“Despite a slight uptick this month, inflation is still expected to remain within manageable levels or between the 2% to 4% target range for the rest of the year,” former Finance Secretary Margarito B. Teves said in a Viber message.

Mr. Dacanay said the outlook for improving inflation was due to the continued downtrend in rice prices.

“Despite the supply shocks, the lower tariff rates on rice and the drop in global rice prices are finally in the works, keeping overall inflation at bay,” he added.

Rice inflation, which contributed 30.8% to overall inflation, quickened to 9.6% in October from 5.7% a month ago.

However, retail prices of rice have been on the decline since the executive order cutting tariffs on rice imports to 15% took effect in July.

Latest data from the Philippine Statistics Authority showed the average price of regular milled rice dropped to P50.22 per kilo in October from P50.47 in September. Well-milled rice prices likewise decreased to P55.28 per kilo from P55.51.

The PSA also said that rice inflation and retail prices are likely to continue to go down moving forward.

“Note that rice represents roughly 9% of the Philippine CPI (consumer price index) basket, so what happens to rice prices affects the overall outlook for Philippine CPI. And so far, risks to rice prices are tilted to the downside,” Mr. Dacanay said.

“Global rice prices are currently falling, and we likely have yet to see it through with India resuming its non-basmati rice exports. The full effect of the tariff rate cut of rice have also yet to fully filter through retail rice prices.”

Pantheon Chief Emerging Asia Economist Miguel Chanco said the uptick in October was due to food inflation and will likely continue into November but “less pronouncedly, before food price base effects turn more neutral.”

“Fundamentally, the outlook for food inflation continues to improve, with upstream pressures still subsiding,” he added.

This inflation outlook will help support the central bank’s plans to further cut interest rates.

“This would allow the BSP to continue with its monetary easing cycle which started in August with a 25-basis-point (bp) cut,” Mr. Teves said.

“This likely gives the BSP room to continue its easing cycle in December, when we expect the central bank to cut rates by 25 bps to 5.75%,” Mr. Dacanay added.

The Monetary Board is set to meet on Dec. 19 for its last policy review for the year. BSP Governor Eli M. Remolona, Jr. has signaled the possibility of a 25-bp cut for the meeting.

Since August, the BSP has cut borrowing costs by a total of 50 bps, bringing the benchmark to 6%.

On the other hand, Mr. Dacanay flagged risks to the rate-cutting cycle, such as currency volatility.

“We continue to expect the BSP to continue its easing cycle in December but flag the risk of a rate pause if FX (foreign exchange) volatility were to persist due to global events,” he said.

“If the (peso) weakens against the US dollar due to global events, such as the US election, the BSP may opt to briefly pause its easing in December to give itself some flexibility if financial markets were to remain volatile,” he said.

“Nonetheless, the BSP should eventually continue its easing cycle once the volatility subsides, bringing the policy rate down to settle at 5% by 2025. In other words, if there are delays to the easing cycle, those delays will likely be only brief.” — Luisa Maria Jacinta C. Jocson

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