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BDO funds 28 green projects from P52.7 billion bond proceeds
Around 28 green projects benefitted from the first ASEAN sustainability bond issuance of BDO Unibank Inc. in January 2022, bolstering the bank’s sustainability commitment......»»
BPI to sell its entire 15% GoTyme Bank stake back to the Gokongweis
Zobel Family banking unit BPI disclosed that its board of directors has approved the sale of BPI’s stake in GoTyme Bank to a subsidiary of JG Summit and a company called Giga Investment Holdings Pte. Ltd. at a price of P1.20/share......»»
RCBC the best PH bank by network uptime, and UBP ranks at the bottom
Brankas, a Singapore-based fintech software and services provider, published its first annual ASEAN Bank Stability Report to measure the network uptime performance of ASEAN-region banks, and RCBC finished in the top spot among banks in the Philippines with an uptime of 98.3% (31 hours total downtime) including a stretch of seven months with zero downtime events......»»
BDO raises record P63 billion from bond offer
BDO Unibank Inc. raised a record P63.3 billion from its bond issuance, as retail and institutional investors swarmed the bank’s second foray into the ASEAN sustainability bond market after almost two years......»»
HCPTI to ‘make Subic port push NorthPhil economy to new highs’
The development and digitalization of the Subic port can help the economy of North Philippines (NorthPhil) and the rest of the country reach new highs. This projection came from economist and teacher Ronilo Balbieran of the University of Asia and the Pacific, citing the vast expanse and strategic location of NorthPhil’s constituent regions north of Metro Manila. Balbieran said Central Luzon, Cagayan Valley, Ilocandia and the Cordilleras could gain unprecedented economic growth from the Subic Port’s development into a truly world-class international gateway vis-a-vis a similarly ongoing modernization of the Clark Freeport Zone, creating a logistical superhighway and growth corridor, whose benefits would spill over to the rest of the archipelago. Poised to modernize the Subic Port is Harbour Centre Port Terminal Inc. (HCPTI), making its operation fully digitalized and serve as the centerpiece and crowning jewel of the entire Freeport zone. The HCPTI’s development plan envisions the Subic Port as the main draw in the marketing of Subic as an investment destination, the facility being a supposedly world-class international gateway and a catalyst of global trade and commerce. Underscoring the significance of distance in logistics, particularly involving marine freight, Balbieran said the Subic port would highlight the strategic location of NorthPhil in relation to six of the countries in the ASEAN and most of those in the Pacific Rim, including Central America. Balbieran also echoed the “sales pitch” of the Department of Tourism and the Tourism Promotions Board hailing NorthPhil as an undisrupted land mass of diverse nature, culture and adventure, featuring a wealth of resources of four large regions between the West Philippine Sea and the Pacific, or from ridge to reef and from coast to coast. “Those regions account for 18 percent of the country’s total GDP (Gross Domestic Product), adding P3.9 trillion to the national economy just for 2022. And in the last two years, these (regional economies) have grown faster than Metro Manila and the entire nation,” Balbieran explained. “With larger investments in expansion and digitalization, the Subic port can further ignite domestic and international trade to and from Luzon, which will expand the economy of NorthPhil even faster.” NorthPhil comprises 84,526 square kilometers, accounting for 28.2 percent of the country’s entire 300,000 sqkm. NorthPhil’s total land mass alone is equivalent to 76.9 percent of Luzon’s 109,965 square kilometers and 87 percent of Mindanao’s 97,530 sqkm. At the same time, the HCPTI’s modernization of the Subic port is also “consistent and fully aligned” with the PBBM administration’s infrastructure and logistics development policy thrust. Balbieran said the National Logistics Strategy of the Department of Trade and Industry included both public and private investments in Logistics 1 of the 6 pillars of improving the country’s logistics efficiency. “The Strategy emphasizes massive investments in ports nationwide, as more than 90 percent of goods pass through the ports,” Balbieran said of what was revealed by the DTI at the recent conference of the Supply Chain Management Association of the Philippines. The DTI’s National Logistics Strategy is also expected to incorporate or be seamlessly integrated with those of the departments of Agriculture, Transportation, Public Works and Highways, and Interior and Local Government as part of another plan to develop a food logistics chain, a cold chain industry, port infrastructure, and farm-to-market roads, thus ensuring affordable availability of food to consumers in real time by reducing logistics cost through investments in appropriate infrastructure and digital technologies. “Thus, the ‘expansion and digitalization of the Subic Port’ by the HCPTI is consistent with the National Logistics Strategy and Food Logistics Plan of the DTI, both getting the nod of President Ferdinand 'Bongbong' R. Marcos Jr. recently,” Balbieran said. “Specifically, though, HCPTI’s modernization of the Subic port will help bring down logistics costs, not just for the businessmen in Northern Luzon, but also for (those in) the rest of the Philippines who will use such facility to trade internationally.” Balbieran said both the DTI and the World Bank had described the Philippines’ logistics cost as “one of the highest” in Southeast Asia at more than 20 percent of sales, compared with Thailand’s only 11 percent. The post HCPTI to ‘make Subic port push NorthPhil economy to new highs’ appeared first on Daily Tribune......»»
Aboitiz Group bags triple Golden Arrow Awards
With a distinguished legacy spanning five generations, the Aboitiz Group remains steadfast in its commitment to fostering positive change in shaping the future as it adheres to the standards and requirements outlined in the ASEAN Corporate Governance Scorecard. This year, following the 2022 compliance period of the ACGS, Aboitiz Equity Ventures Inc. received a 4-arrow recognition after scoring 111.68 points, AEV’s highest ACGS score since the Institute of Corporate Directors inaugurated the Golden Arrow Awards in 2018. Aboitiz Power Corporation and Union Bank of the Philippines both received a 3-arrow recognition for scoring between 100 and 109 points. Consistent top performers It’s also important to note that AEV and AboitizPower have consistently been recognized as top performers in corporate governance, both here in the country and in the ASEAN region since 2013-2017 at the PSE Bell Awards. “This distinction is the result of the Aboitiz Group’s work to transform a legacy business into a hyper-innovative, diversified conglomerate that puts corporate governance and citizenship at the core of its operations. We have always believed that transparency and accountability are essential in building trust amongst our stakeholders and forging strong partnerships in order to drive change,” said Ginggay Hontiveros-Malvar, Aboitiz Group’s chief reputation and sustainability officer. AEV, the portfolio management company of the Aboitiz Group, leads investments in diverse sectors including power, banking and financial services, food, infrastructure, land, and cutting-edge fields such as data science and artificial intelligence. The Group is presently undergoing a profound transformation to establish itself as the Philippines' first "techglomerate." This innovative growth strategy, fueled by technology and a renewed entrepreneurial mindset, empowers Aboitiz to drive transformative change, shaping the future of its businesses, host communities, and the nation. The Golden Arrow Recognition serves as a testament to Aboitiz Group's unwavering commitment to upholding the highest standards of corporate governance. Aboitiz has excelled in several key areas such as compliance, sustainability, and innovation — positioning it as a frontrunner in the realm of corporate governance. This honor reflects the Group's ongoing commitment to creating value for its shareholders, stakeholders, and the broader Filipino community. Robust policies Aboitiz Group’s robust policies and procedures across every level of the organization form the bedrock of its commitment to excellence in corporate governance. Furthermore, the company's board of directors is characterized by its independence and diversity, playing a pivotal role in providing oversight and making strategic decisions aligned with the best interests of shareholders and stakeholders. Aboitiz places great emphasis on transparency, providing clear and comprehensive information regarding its financial performance, operations, and decision-making processes to ensure that shareholders and the public remain well-informed. In terms of regulatory compliance, Aboitiz is dedicated to adhering to all relevant laws, regulations, and standards related to corporate governance. The company continuously updates its policies to ensure alignment with evolving requirements. When it comes to ethical business practices, the Group's commitment to ethical conduct and integrity remains unwavering. “This award reaffirms the team’s adherence to the shared responsibility of sustainably managing the organization. This further motivates us to champion the highest corporate governance and ethical standards as we continue to grow the business,” said AboitizPower president and chief executive officer Emmanuel Rubio. “Likewise, we also exert as much effort and diligence in upholding environmental preservation and the societal good within the areas we have the privilege to serve,” he said. Corporate governance For his part, UnionBank lead independent director Roberto Manabat said, “We humbly accept this recognition as a reinforcement of the principles that guide the Bank. Our corporate governance practices reinforce the requirements of a constantly evolving business landscape. We ensure that they comply with new regulations and are ready to adopt best practices.” Aboitiz is deeply committed to sustainability and corporate social responsibility initiatives. The post Aboitiz Group bags triple Golden Arrow Awards appeared first on Daily Tribune......»»
Aboitiz Group bags triple Golden Arrow Awards
With a distinguished legacy spanning five generations, the Aboitiz Group remains steadfast in its commitment to fostering positive change in shaping the future as it adheres to the standards and requirements outlined in the ASEAN Corporate Governance Scorecard. This year, following the 2022 compliance period of the ACGS, Aboitiz Equity Ventures, Inc. received a 4-arrow recognition after scoring 111.68 points, AEV’s highest ACGS score since the Institute of Corporate Directors inaugurated the Golden Arrow Awards in 2018. Aboitiz Power Corporation and Union Bank of the Philippines both received a 3-arrow recognition for scoring between 100 and 109 points. AEV and AboitizPower have consistently been recognized as top performers in corporate governance, both here in the country and in the ASEAN region since 2013-2017 at the PSE Bell Awards. “This distinction is the result of the Aboitiz Group’s work to transform a legacy business into a hyper-innovative, diversified conglomerate that puts corporate governance and citizenship at the core of its operations. We have always believed that transparency and accountability are essential in building trust amongst our stakeholders and forging strong partnerships in order to drive change,” said Ginggay Hontiveros-Malvar, Aboitiz Group’s chief reputation and sustainability officer. AEV, the portfolio management company of the Aboitiz Group, leads investments in diverse sectors including power, banking and financial services, food, infrastructure, land and cutting-edge fields such as data science and artificial intelligence. The Group is presently undergoing a profound transformation to establish itself as the Philippines' first "techglomerate." This innovative growth strategy, fueled by technology and a renewed entrepreneurial mindset, empowers Aboitiz to drive transformative change, shaping the future of its businesses, host communities and the nation. The Golden Arrow Recognition serves as a testament to Aboitiz Group's unwavering commitment to upholding the highest standards of corporate governance. Aboitiz has excelled in several key areas such as compliance, sustainability, and innovation – positioning it as a frontrunner in the realm of corporate governance. This honor reflects the Group's ongoing commitment to creating value for its shareholders, stakeholders, and the broader Filipino community. Aboitiz Group’s robust policies and procedures across every level of the organization form the bedrock of its commitment to excellence in corporate governance. Furthermore, the company's board of directors is characterized by its independence and diversity, playing a pivotal role in providing oversight and making strategic decisions aligned with the best interests of shareholders and stakeholders. Aboitiz places great emphasis on transparency, providing clear and comprehensive information regarding its financial performance, operations, and decision-making processes to ensure that shareholders and the public remain well-informed. In terms of regulatory compliance, Aboitiz is dedicated to adhering to all relevant laws, regulations, and standards related to corporate governance. The company continuously updates its policies to ensure alignment with evolving requirements. When it comes to ethical business practices, the Group's commitment to ethical conduct and integrity remains unwavering. The company adheres to a stringent code of conduct that guides the behavior of its employees, fostering an environment of trust and integrity. “This award reaffirms the team’s adherence to the shared responsibility of sustainably managing the organization. This further motivates us to champion the highest corporate governance and ethical standards as we continue to grow the business,” said AboitizPower president and chief executive officer Emmanuel Rubio. “Likewise, we also exert as much effort and diligence in upholding environmental preservation and the societal good within the areas we have the privilege to serve.” “We humbly accept this recognition as a reinforcement of the principles that guide the Bank. Our corporate governance practices reinforce the requirements of a constantly evolving business landscape. We ensure that they comply with new regulations and are ready to adopt best practices,” said UnionBank lead independent director Roberto Manabat. Aboitiz is deeply committed to sustainability and corporate social responsibility initiatives. The company actively pursues environmental and social responsibility, demonstrating its dedication to creating a positive impact on society and the environment. The post Aboitiz Group bags triple Golden Arrow Awards appeared first on Daily Tribune......»»
Cloud aids banks scale up operations
One of the world’s leading open platforms for composable banking, Temenos, underlined that cloud applications can help banking institutions efficiently scale up operations. Temenos serves 3000 banks from the largest to challengers and community banks in 150-plus countries by helping them build new banking services and state-of-the-art customer experiences. Temenos Banking Cloud, the company’s SaaS offering, is used by over 700 clients across more than 30 jurisdictions. During Temenos Cloud Forum 2023 forum for bank professionals in the Philippines, graced by representatives from the leading banks in the country, Temenos Financial Services Partner for Ernst and Young, Anurag Mishra, discussed “Banking Transformation” explaining that the cloud could help banks to efficiently scale their operations and design customer experiences which are more engaging. “One of the most important shifts that is happening is on the customer side. Banking is going to transition while customers are demanding ‘hyper-personalization’ and that requires new technologies. Today is the best time to shift from a technology perspective because the number of options to deliver on customer experience is huge and the cloud can solve specific problems,” according to Mishra in his presentation. On the other hand, Temenos Business Solution Lead for ASEAN, Rishi Sarin, explained the changing landscape and the challenges in the banking industry. “In a recent report published by Accenture “The ultimate guide to banking in the Cloud 2022,” 94 percent of banking respondents said that about 50 percent of all their banking business and technologies will migrate to the cloud in the next three years, while cloud adoption increased 2x in 2022 compared to 2021. There are currently huge investments by Cloud providers in the market so when we offer it as a service, it’s not only the reliability that comes in, but we can also provide security, stability and resilience,” Sarin said. He reiterated that the traditional set-up in which banks usually manufacture and distribute their own products, is changing fast as end-customers are demanding financial services at the point of need and it doesn’t necessarily matter to them who is providing those services. This fundamental shift is giving rise to new business models like embedded finance or Banking-as-a-Service. Temenos Principal Solution Consultant for Digital Banking Solutions for Asia-Pacific, Bala Carcharla, highlighted the three stages of “Lifestyle Banking.” The post Cloud aids banks scale up operations appeared first on Daily Tribune......»»
ASEAN summit ‘productive’, biz meetings net $22M investment pledges: Marcos
JAKARTA, Indonesia – President Ferdinand Marcos Jr. said that the 43rd Association of Southeast Asian Nations Summit demonstrated the commitment of countries in the region to regional cooperation and multilateralism. In his latest YouTube vlog on Thursday, Marcos said that the summit was a productive one, and that he was able to promote and highlight key interests of ASEAN. He said these interests include food and energy security, security, migrant workers protection, climate change, and digital transformation. "I was able to participate in 12-leaders level meetings, including with Australia, Canada, China, India, Japan, the Republic of Korea and the United States and the United Nations," Marcos said. "In these meetings, I promoted and highlighted key interests of ASEAN, such as food and energy, security, migrant workers protection, climate change and digital transformation --- issues that are of strategic importance to the Philippines," he added. Marcos also said that he had a productive meeting with the President of the World Bank Group, where they discussed ways to strengthen cooperation in areas such as climate change adaptation and mitigation, and sustainable development. On the sidelines of the summit, Marcos met with top executives of select Indonesian companies who are looking at the Philippines to expand their presence further. He said that these meetings resulted in $22 million in investment commitments in areas crucial for the Philippines' economic recovery efforts, such as agriculture and the digital economy. Marcos also witnessed the signing of the Philippine-Republic of Korea Free Trade Agreement (FTA), which he said would strengthen the Philippines' bilateral trade and investment relations with South Korea. "The FTA will generate jobs and contribute to the Philippine value proposition as an ideal regional hub for smart, sustainable investment," Marcos said. Marcos reiterated that the Philippines will chair the ASEAN in 2026 instead of 2027. He said that the Philippines stepped up to this role to ensure the continuity of its progress towards a people-oriented, people-centered, inclusive, and resilient ASEAN community. He also thanked and congratulated Indonesian President Joko Widodo for "his very able stewardship" as chair of ASEAN this year and for making ASEAN as important as it ever has been. "I also thank them for the very warm hospitality of the Philippine delegation, And I look forward to able leadership of Lao PDR when they host the ASEAN in 2025," he said. The post ASEAN summit ‘productive’, biz meetings net $22M investment pledges: Marcos appeared first on Daily Tribune......»»
ASEAN common rice stock urged
The Philippine Chamber of Commerce and Industry, or PCCI, proposed that members of the Association of Southeast Asian Nations or ASEAN should establish rules for a regional rice buffer to prevent food insecurity amid the effects of climate change. “This will help the ASEAN members strengthen relationships as we face climate change which is reducing rice production of its most vulnerable members. This amplifies the spirit of unity and cooperation in the ASEAN,” PCCI President George Barcelon told the Daily Tribune in a phone interview on Wednesday. His statements came after the opening of the 43rd ASEAN Summit in Jakarta, Indonesia on Tuesday. The United Nations’ Food and Agriculture Organization said the rice yield per hectare for the past 30 years was decreasing in six out of 10 ASEAN states: Philippines, Cambodia, Myanmar, Indonesia and the region’s top rice exporters Thailand and Vietnam. Declining yield Thailand saw a lower rice yield from 12 metric tons per hectare to 10 metric tons, while Vietnam posted a rice yield from nearly 8 metric tons per hectare to 7 metric tons. The Philippines and Cambodia recorded less than 4 metric tons per hectare each year. “While we have regional trade agreements, these cannot fully prepare the ASEAN against the food impact of heavy rains and extreme drought caused by climate change. We’ve seen this happening already,” Barcelon said. The United Nations forecasted rice consumption in Southeast Asia can expand by 30 percent over the next two decades. Without effective climate change mitigation measures, the World Bank said the Philippines can see 35 percent more agricultural and infrastructure damage from stronger typhoons, while 20 percent more from drought. The post ASEAN common rice stock urged appeared first on Daily Tribune......»»
Digitizing a must — Concepcion
Honing and making micro, small and medium enterprises fully engrossed with digitization is now a must for every country in the ASEAN Region to fully realize the expanding opportunities presented by digital transformation, according to ASEAN-Business Advisory Council Philippines chairperson Joey Concepcion. “The power of digitalization is there; we just have to use it. It’s time that we really focus on the objective of greater prosperity, especially for those at the bottom of the pyramid, using whatever tools we have,” Concepcion said during a panel discussion on ASEAN’s Digital Powerhouse at the Nexus of Connectivity and Transformation in Jakarta, Indonesia on Sunday. “We must enable MSMEs to use digitalization to their advantage. Digital growth is seen to boost cross-border e-commerce by providing MSMEs with access to new markets and is hoped to promote financial inclusion to underserved populations,” he added. Further, Concepcion noted that although the rapid growth of digital adoption in the ASEAN bodes well for the region’s economies, its growth must be inclusive, with MSMEs being crucial to sustainable growth, to fully realize the expanding opportunities presented by digital transformation. “All of these tools are important to uplift the lives of our people. That’s why we are here: how do we solve big problems, especially for those who are at the bottom of the pyramid,” he said, pointing out that four of the 10 countries in the ASEAN have nearly a fifth of their populations still living in poverty. Region’s biggest tech players The session gathered some of the region’s biggest technology players, as well as key stakeholders from leading multinational companies, global financial institutions, and government organizations. The session delved into the development of strategic policies — including financial technology, e-trade, and cross-border trade facilitation. “The power of digital has to be used. The crisis pushed people to use these tools and this is one of the reasons we in the ASEAN BAC Philippines proposed to sign an MoU with each ASEAN country to focus on sectors that will bring development, specifically agriculture and MSMEs,” he said. He also pointed out that digitalization will stand to benefit even the one-man businesses — also known as nanopreneurs — who now have a better chance at succeeding because they have access to marketing tools and digital payment solutions. “We are the big brothers. Unless we embrace the MSMEs in our value chain this is going to take a long time. That is our mission as ASEAN BAC heads, to see to it that greater prosperity is achieved,” he said. Private sector feedback The ASEAN BAC was organized to provide private sector feedback and guidance to boost ASEAN’s efforts towards economic integration. It was said in the discussion that ASEAN has emerged as the world’s fastest-growing Internet market, with a 40 percent annual growth in the value of e-commerce between 2016 and 2021. Further, it is set to become the world’s fastest-growing digital market driven by a growing consumer market and the rapid adoption of social commerce platforms by its population. “This growth must be inclusive to unlock the benefits. It must be used to enable MSMEs,” he said. Phl case cited Concepcion cited the Philippines case as an example of how digital technology has helped MSMEs compete with big corporations and gave birth to a thriving digital economy that was further hastened by the pandemic lockdowns. Aside from Concepcion, other speakers in the session were Sam Myers, deputy trade commissioner for Asia Pacific (Southeast Asia) at the UK Department for Business and Trade; Haslina Taib, CEO of Dynamic Technologies; Yuem Kuan Moon, CEO of Singtel; and Kok Ping Soon, CEO of Singapore Business Federation. Bank of Indonesia Governor Dr. Perry Warijjyo, Temasek Holdings CEO Dilhan Pillay Sandrasegara; and Japan External Trade Organization Chairman Ishiguro Norihiko delivered keynote remarks, while ASEAN-BAC Indonesia Policy Manager for Digital Transformation Yohanes Lukiman gave a policy presentation. The post Digitizing a must — Concepcion appeared first on Daily Tribune......»»
ASEAN ramps up regional payment connectivity
The Association of Southeast Asian Nations is further ramping up cross-border payments to include State Bank of Vietnam , bringing to six the number of central banks joining the regional payment connectivity initiative......»»
Rethink tax
How does the Philippines attract more foreign investment? Last week, big business groups, including the American Chamber of Commerce of the Philippines and investors inside Clark and Subic freeports, appeal the review and amendment of pertinent rules issued by the tax bureau to preserve the original intent of the Create Act. According to the group, the IRR and the BIR issuances “effectively stopped” the enjoyment of the tax incentive and other fiscal perks, as some investor firms are now levied with VAT and other taxes. The group cited data from the World Bank, which showed that the Philippines only account for 5 percent of the total average foreign direct investment in the Asean (2011-2021) while neighbors like Singapore, Indonesia, Thailand, Malaysia and Vietnam account for 53 percent, 11 percent, 11 percent, 9 percent and 8 percent, respectively. They warned that, if the issue is not resolved, the Philippines’ ranking in global competitiveness might further slide down. In fact, Taiwanese businesses inside Clark and Subic freeports have been appealing to the authorities about these benefits issue for some time. As it is widely known, while Filipinos have high English proficiency, high electricity rates, poor infrastructure, transportation systems inadequacy, supply-chain shortages and lack of tax incentives are among the issues businesses are facing in the Philippines. Vietnam and Singapore have been top investment destinations for Taiwanese companies in the Asean. It is estimated that the overall volume of investment from Taiwan to the Philippines is only 1/16 of overall Taiwanese investment in Vietnam. To create a more amiable environment for FDI, it takes the government to be more determined to invest in infrastructure projects and address these pressing issues with all-out effort. In recent months, the Taiwan Semiconductor Manufacturing Co., referred to as “the sacred mountain” that protects Taiwan, has declared several investment plans in the US, Japan and Germany. These projects have raised global attention and it is worth noting that the German government reportedly will contribute up to €5 billion (P306 billion) to the European Semiconductor Manufacturing Company plant in Dresden, Germany, which will be 70-percent owned by TSMC, with German multinational engineering and technology company Bosch, German semiconductor manufacturer Infineon and Dutch semiconductor designer and manufacturer NXP each holding 10 percent equity stake. German public broadcaster Deutsche Welle reports that the reason TSMC chose Dresden to build the factory is most likely because of the cluster effect. Dresden is the capital city of the German state of Saxony where it has been the epicenter of chip production in Europe. It is reported that every third semiconductor made in Europe comes from Saxony. The region also benefits from the presence of prominent research institutes and universities to provide talents, such as Fraunhofer and Technical University Dresden, one of the foremost technical institutions in Germany. Simply put, while investment incentives are not something required for companies when they make decisions to invest in a certain country, it does play a significant role and the authorities have to consider how much they want to attract foreign investment and use these critical tools wisely. The post Rethink tax appeared first on Daily Tribune......»»
Gov’t seeks Indon capital
Finance Secretary Benjamin Diokno presented to Indonesia’s business community the Philippine economic plans for securing investments in infrastructure, energy and technology. In a statement by the Department of Finance on Thursday, it said Diokno conducted the talk in Jakarta City on Wednesday ahead of the 10th ASEAN Finance Ministers and Central Bank Governors’ Meeting from 24 to 25 August. The listeners included members of the Indonesian Chamber of Commerce and Industry and the Philippine Business Club Indonesia, and officials of foreign embassies in Jakarta. Diokno said the Philippine lawmakers are now studying all measures for faster public-private partnerships or PPPs as the Marcos administration aims to build 197 infrastructure flagship projects, including railways, airports and water management, among others. PPP crucial “The PPP Act, which is currently pending in the Senate, consolidates all legal frameworks on PPP and creates a unified system for investors to refer to when engaging in PPP projects,” DoF said. To build more capital for Philippine infrastructure development and diversify investment channels, Diokno said government agencies are now crafting the rules and regulations of the Maharlika Investment Fund. “This is the Philippines’ first sovereign investment fund that will serve as a platform for investors to engage in direct equity investments in Philippine ventures,” he said. Diokno said both the legislative proposal and newly approved sovereign fund will support economic expansion from liberalized investment laws passed by the previous Duterte administration. Diokno shared amendments to the Public Service Act which now allows full foreign ownership from 40 percent previously of various businesses, such as airlines and telecommunications. Amid growing concerns with climate change, the finance chief said this applies also to renewable energy facilities, such as solar plants. Indonesia, along with China and India, is among the world’s largest exporter of coal, according to the International Energy Agency. However, Indonesia vowed to achieve net-zero carbon emissions by 2060, while it is 2050 for the Philippines. To ensure efficient management and profitability of infrastructure, Diokno said the government also eased processes for foreign investors under the Build-Operate-Transfer Law. “To help foster the development of high quality, modern, and sustainable infrastructure in the country, we wasted no time in building a fertile business and investment ecosystem for private players,” Diokno said. The post Gov’t seeks Indon capital appeared first on Daily Tribune......»»
Of China’s ‘One Belt One Road’
Sometime in August 2016, I attended the formal media launch of One Belt One Road, or OBOR, in Beijing, China. I thought then that OBOR, also referred to later as Belt and Road Initiative, must be one of the most, if not the most, significant programs of President Xi Jinping, as it was attended by hundreds of print and broadcast journalists from around the world, the Philippines included. OBOR was to revive the “Silk Road” economic belt of ancient China, a land trade route carrying its finest silk and other goods to its neighboring Central Asian countries and later to as far as Europe; whereas today’s Road refers to the 21st Century land and maritime silk route to Southeast Asia, the Middle East and Africa. The land route was launched, I think in 2013, while the maritime route was given a big push in 2017. Early on, China set up the Asian Infrastructure Investment Bank as part of the OBOR mechanism. China sank in the initial capital and was joined later by other member countries. The Philippines was the last country to join AIIB when the late President Noynoy Aquino signed its Charter in the last few minutes of 31 December 2015, and this was ratified a year later during Duterte’s term. In sum, AIIB had 106 members to start. The Philippines, if we look at the records, derived from loans and infrastructure projects, was quite slow in availing of cheap money from this BRI initiative. Indonesia, Singapore, and other ASEAN and African countries had done so for various infra projects, among these railways, dams, and ports. The small loan amount we obtained was later topped up by China in terms of gifts which came in the form of bridges, schools, medical supplies, and vaccines when the Covid-19 pandemic broke out. Add to that are the much-needed arms for our armed forces to get rid of the marauding Maute ISIS terrorist group in Marawi City and additional help to rehabilitate it later. Alarmed by the inroads China was making with the BRI through the land and marine infrastructure built with the billions of dollars it loaned to countries along the silk routes, the West was quick to make a big issue of it when Sri Lanka defaulted, calling China’s loans a “debt trap.” Of course, not a few of those struggling economies defaulted as the impact of the new infrastructure on their development had yet to gain traction. However, President Xi Jinping waived the interest dues. How is it for China midway to the Road’s target completion date of 2049? The BRI has covered more than 68 countries with an estimated 65 percent of the world’s population. All told, the largesse from China resulted in the reduction of dependency on the US and it created new markets for Chinese products. The US of A is fast losing its dominance. China, once wallowing in the quagmire of poverty, is now the second-largest economy in the world and growing. Will China then go beyond firing water cannons at Philippine Coast Guard vessels? This could only be answered by another set of questions. Is China willing to cut the marine silk route that passes through or close to the West Philippine Sea? Will its land route suffice to bring its products to its export markets in the event the sea lane is altogether cut off? Will the Chinese people relish going back to poverty and isolation? The answers are a big NO. So why EDCA? Why not pursue the Philippines-China joint oil exploration in the WPS as the offer stands at a 60/40 sharing agreement in favor of the Philippines? Why build more military bases when these are veritable beckons to war which we as a policy abhor? Why not take advantage of the short maritime link between China and the Philippines to enhance our economy? The price of fuel is skyrocketing. Our peso is depreciating as in a free fall. We have solutions and yet these, too have become problems. The post Of China’s ‘One Belt One Road’ appeared first on Daily Tribune......»»
BSP to take ‘prudent’ pause from rate hike if inflation cools
The Bangko Sentral ng Pilipinas (BSP) would be "prudent" to pause the policy rate increase if there are no significant inflation shocks in the country. Speaking to Nomura Holdings Inc. earlier this month, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. warned against "sudden reversals" of monetary policy when asked about a possibility of a rate cut in the next Monetary Board meeting on 17 August. "If there's a chance that we might have to raise rates again after we start cutting, we don't want to take the risk from these quick reversals," Remolona said in an interview with Nomura's chief ASEAN economist Euben Paracuelles that the central bank sent on Friday. Remolona also reiterated that the country isn't "out of the woods yet" on inflation, and the BSP is watching new supply shocks and El Niño to see if further monetary tightening is needed. For context, the Central Bank chief said in a speech during the BSP's 30th-anniversary reception for the banking community last month that the core inflation in the country is still elevated despite easing headline inflation. Core inflation is the change in the costs of goods and services that excludes volatile food and energy prices. Headline inflation, on the other hand, is a measure of the total inflation within an economy, including commodities such as food and energy prices. "Headline inflation is at 4.7 percent year-on-year, and we want to get to the target of 2 to 4 percent. But we also want to be comfortable that inflation stays within that range and inflation expectations remain anchored," Remolona told Nomura. "If we don't tighten when those shocks materialize, then expectations could get out of hand, inflation will feed on itself, and it gets much harder for us," he added. Asked if policy settings would be kept stable if no supply shocks happen, Remolona said, "The pause means the signals from the data are still mixed and inconsistent. Some indicators show the economy is holding up, some are weakening." "If this continues, then it's likely prudent for us to pause still," he said. Remolona said that the BSP is ready to resume monetary policy tightening if needed to keep inflation under control. He noted that the central bank has a "flexible" inflation targeting framework and will not hesitate to take action if inflation pressures persist. "We're also flexible in the sense that we can extend the horizon. We go where the data lead us," Remolona said. The post BSP to take ‘prudent’ pause from rate hike if inflation cools appeared first on Daily Tribune......»»
Proposed P5.768T 2024 budget 9.8% higher than 2023
The Philippines would be "one step closer" to realizing the government's "transformative vision" for the country once Congress accepts the proposed National Budget for 2024, President Ferdinand Marcos Jr. said. The Chief Executive made the remarks in his Budget Message on Wednesday as the Department of Budget and Management turned over the Marcos administration’s proposed 2024 budget or National Expenditure Program worth P5.768 trillion to Congress. In his message, Marcos explained that the proposed budget aims to provide the resources required for government operations and the ongoing pursuit of economic reform. Initial information from the DBM showed that the proposed budget is 9.8 percent higher than the P5.268 trillion General Appropriations Act or the enacted budget for 2023. "With the Congress's approval of the proposed (Fiscal Year) 2024 National Budget, we will be one step closer to achieving our transformative vision for the country, the Agenda of Prosperity," Marcos said. "Our journey has just begun. We will march on — one nation, one people building a better future together," he added. The President said that the proposed budget for 2024 was a key part of the Philippine Development Plan 2023–2028, which aims to strengthen the country's capabilities, protect the buying power of Filipinos, and improve output sectors to create more good jobs and products that can compete globally. "In turn, these strategies are to be supported by an enabling environment characterized by macroeconomic stability, infrastructure development, bureaucratic efficiency, strong rule of law and effective climate action," Marcos said. The President also highlighted the "strong headwinds" the country had to deal with last year as it tried to get its economy back on track. He pointed out that his economic managers made the Medium-Term Fiscal Framework, which is now the "bedrock" of the plan to change the economy, to deal with these problems. The Chief Executive said that the Philippines' gross domestic product grew by 7.6 percent for the whole year of 2022, the biggest since 1976. Marcos said that the country's growth "set the stage" for continued growth in 2023, mentioning that the country's economy expanded by 6.4 percent for the first quarter of 2023, surpassing its Asian peers such as Indonesia, China and Vietnam. The World Bank, he also said, declared that the country could reach above-middle-income status within two years. "Likewise expressing confidence in our country's economic growth, the International Monetary Fund said that it was 'highest among the ASEAN-5', noting its resilience to global pressures," the Filipino leader added. Marcos Jr. likewise cited the country's good credit quality standing, improved revenue performance and high employment rate. "Our immediate economic recovery was the result of the collective effort of the Filipinos. Unity was what made it happen," Marcos said. "For the next five years, we must do more, building on all the gains that we have made – through the same whole-of-government and whole-of-society approach. We need this not only to be effective but to be transformative," he concluded. The post Proposed P5.768T 2024 budget 9.8% higher than 2023 appeared first on Daily Tribune......»»
Nuke challenge (2)
As time passes, the country risks becoming a doormat in terms of ensuring an ample supply of electricity at an economical cost, which are the benefits being realized by its neighbors through nuclear energy. There are 445 nuclear reactors in the world that are currently in operation and another 57 are under construction. A total of 30 countries are involved in nuclear energy production, including the US, France, China, Japan and Russia, according to the National Academy of Science and Technology, which is the authority on nuclear energy in the absence of a regulator. The global capacity of nuclear power, however, has progressively decreased due to changes in Western government policies and the shutdown of reactors in Japan, Germany and the US. Still, there was an increase in global nuclear generation by 1.4 percent in 2016 largely attributed to China’s 23-percent rise. Nuclear power’s share in the total generation mix fell to 11 percent in 2015 but still corresponds to nearly a third of the world’s low-carbon electricity production. In the ASEAN, the primary demand for energy grew by 70 percent between 2000 and 2016. Three-fourths of the region’s energy production is based on fossil fuels. Vietnam is intent on expanding nuclear power generation as manifested by its agreement with Russia and Japan to build two plants. Thailand, on the other hand, has not pursued its nuclear program since 2014, while Indonesia will open to nuclear energy after 2025. The Malaysia Nuclear Power Corporation states that the country will wait until 2030 for a similar facility of its own. Recently, the House special committee on nuclear energy adopted a resolution calling on the Department of Energy to create a Nuclear Energy Division. Pangasinan Representative Mark Cojuangco, the panel chairperson, adopted House Resolution 387, which is in line with the objective of incorporating nuclear power into the energy mix. The proposed DoE division would be in charge of developing the framework for utilizing and managing nuclear energy in the country. It should also further advance the plan to utilize nuclear energy to combat the rising prices and the lack of electricity supply. In his first State of the Nation Address, President Ferdinand R. Marcos Jr. said it was “time to re-examine” the country’s strategy toward building nuclear power plants. “We must build new power plants. We must take advantage of all the best technology that is now available, especially in the area of renewable energy,” he said. An additional capacity of 43.765 megawatts or an additional 73 high-capacity power plants will be needed by 2040. Its continued dependence on imported fossil fuels makes the country vulnerable to world energy price volatilities. By comparison, the cost of generating nuclear energy is less sensitive to fuel price hikes due to the larger component contributed by its capital cost, thus making nuclear plants an important baseload power generation source as demonstrated in many countries. The government’s international commitment to bring down greenhouse gas emissions by 70 percent will bank on the nuclear energy initiative since renewable energy is not delivering the benefits as promised. Coupled with strong programs on carbonless energy production, considerable greenhouse gas reductions can expectedly be achieved. As the country heavily relies on fossil-based fuels, energy from nuclear fuel is seen as a viable solution to mitigate the effects of climate change. Global energy demand is predicted to increase by 2030 and so with the carbon emission. For several urgent reasons, economic growth and the ecological balance included, the imperative is for the DoE to defy its detractors and step up to embrace nuclear power as a source of electricity. The post Nuke challenge (2) appeared first on Daily Tribune......»»
Invest blitz spurs Canadian interest
Major Canadian fund managers have expressed interest in investing in the country’s infrastructure, investments in sustainability and energy transition and sovereign debt issues. The Department of Finance, or DoF, said select funds, including development finance institution FinDev Canada; pension funds Ontario Teachers’ Pension Plan, OPTrust, Ontario Municipal Employees Retirement System, and Healthcare of Ontario Pension Plan are exploring opportunities in the country. Investment management companies Black Creek and Vanguard also expressed keen interest in the Philippines’ public-private partnership. Canada roadshow Economic managers successfully brought their US-Canada non-deal roadshow to a close on 14 July. Composed of a series of roundtable meetings in New York and Toronto, the non-deal roadshow served as an opportunity for investors to learn more about the Philippines’ growth outlook, economic and fiscal policy environment, investment opportunities, and growth engines in the medium and long term. “The Philippines has a very interesting story to tell. The meetings we had in New York and Toronto gave us the opportunity to share with current and potential investors the country’s robust growth outlook and the engines that will drive this growth, such as the recently reopened mining industry, the rebound of tourism, and the ambitious ‘Build, Better, More’ program,” Finance Secretary Benjamin Diokno said. Powerhouse cast Diokno, Bangko Sentral ng Pilipinas Governor Eli Remolona Jr., National Economic and Development Authority Secretary Arsenio Balisacan, Department of Budget and Management Secretary Amenah Pangandaman, and Treasurer of the Philippines Rosalia de Leon led in-depth discussions on the country’s priority high-growth sectors. Presented before the forum were the reopening of the mining industry, tourism, manufacturing, the growth of business process outsourcing, renewable energy and green investments, environmental, social and governance issuances, overall growth outlook, and the Maharlika Investment Fund. The economic team met with a mix of fixed-income and infrastructure funds, institutional investors, development finance institutions, mining companies and asset management companies. Closing the roadshow activities, Diokno and Pangandaman led the market close ceremony at the Toronto Stock Exchange, the largest exchange in Canada, on 14 July. During a meeting before the market close, TSX head of government affairs David Clarke presented opportunities to deepen capital in mining, a major industry in Canada, in the Philippines and talked about the huge presence of TSX-listed companies with mining activities in Asia and the Philippines. The non-deal roadshow was organized and supported by the Bangko Sentral ng Pilipinas-Investor Relations Group, DoF, BofA Securities, Canada-ASEAN Business Council, Global Affairs Canada, Citi, Deutsche Bank, Goldman Sachs, HSBC, Morgan Stanley, Philippine Embassy in Canada, Standard Chartered Bank, Sun Life, Manulife and UBS. The post Invest blitz spurs Canadian interest appeared first on Daily Tribune......»»
OCBC sees ASEAN-China connections to continue deepen over medium term
KUALA LUMPUR, July 4 (Xinhua) -- OCBC Bank on Tuesday foresaw ASEAN-China connections to continue to deepen over the medium term. In an OCBC treasury research provided to Xinhua, OCBC Bank's economists Tommy Xie Dongming and Lavanya Venkateswaran said that increased linkages between the Association of Southeast Asian Nations (ASEAN) and China will foster deeper connections. Despite a marked deceleration i.....»»