Category: Economy

CAGAYAN DE ORO—Northern Mindanao emerged as a key contributor to the Philippines' economy in 2023, accounting for 4.7 percent of the national gross domestic product (GDP), as reported by the Philippine Statistics Authority (PSA) on Friday. The region's GDP contribution marked a slight decrease from 5.6 percent in 2022, positioning it seventh among all regions, with the National Capital Region leading at 31.2 percent.

According to Philippines News Agency, Northern Mindanao ranked ninth in terms of GDP growth across the country and second among Mindanao regions, following Davao. Central Visayas recorded the highest regional growth rate at 7.3 percent, followed by Western Visayas at 7.2 percent, and Ilocos Region at 7.1 percent.

Dr. Janith Aves, PSA Region 10 Officer-in-Charge, highlighted that Region 10, encompassing Northern Mindanao, expanded by 5.3 percent in 2023. The region also reported growth in various sectors, with the industry sector increasing by 3.8 percent, down from 6.6 percent the previous year. Services showed a growth of 7.8 percent, a decrease from 10.1 percent in 2022. Meanwhile, agriculture, forestry, and fishing experienced a marginal growth of 0.3 percent, slightly down from 0.5 percent in the prior year.

New York — Oil prices experienced an uptick on Friday, driven by robust demand in the United States and escalating tensions in the Middle East. International benchmark Brent crude reached $89.66 per barrel by 10:36 a.m. local time, marking a 0.7 percent increase, while American benchmark West Texas Intermediate (WTI) was priced at $84.05 per barrel, up by 0.6 percent.

According to Philippines News Agency, the increase is partly due to a significant drop in US commercial crude oil inventories, which fell by about 6.4 million barrels to 453.6 million barrels last week, underscoring strong domestic demand. Additionally, rising geopolitical tensions contributed to concerns over oil supply, particularly from the Middle East.

The escalation includes recent actions by Yemen's Houthi group, which claimed responsibility for attacking an Israeli vessel and multiple targets in Eilat using missiles and unmanned aerial vehicles. These developments have heightened concerns over supply disruptions in the region, further supporting the increase in oil prices.

Moreover, ongoing uncertainties about the US Federal Reserve's timeline for interest rate cuts continue to influence the oil market. The potential for rate cuts has somewhat restrained the upward movement in oil prices, as higher interest rates tend to strengthen the US dollar, making oil more costly for buyers using other currencies.

BAGUIO CITY — The Cordillera Administrative Region (CAR) has achieved a 96.7 percent employment rate, the Department of Labor and Employment (DOLE) reported on Wednesday. The region now counts 1.3 million people within its labor force.

According to Philippines News Agency, regional statistical specialist at the Philippine Statistics Authority in CAR, 64.43 percent of the region’s population are active in the labor market. He noted during a press conference that the unemployment rate stands at 3.3 percent, which is lower than the national rate of 4.5 percent. The services sector has become the primary source of employment, surpassing agriculture, with the industry sector also playing a significant role in job creation.

The top employment contributors within the services sector are business process outsourcing, construction, and retail and wholesale, stated Emerito Narag, Assistant Regional Director of DOLE-CAR. He highlighted the growth in tourism and recovery of more establishments from the pandemic's impacts. Narag also mentioned that labor-related complaints in the region are minimal and typically resolved swiftly in early conferences between the involved parties.

DOLE-CAR is actively conducting unannounced inspections in workplaces to monitor the conditions for workers and compliance with employment standards. Narag emphasized the attention given to the expanding construction industry, which involves significant safety risks for workers. He noted that safety violations incur a fine of PHP40,000, and the lack of personal protective equipment results in a PHP20,000 penalty, escalating daily if not addressed promptly.

"We cannot compromise health and safety," Narag concluded.

PASAY CITY — SM Investments Corp (SMIC) has announced a strategic shift towards expanding its operations in provincial areas, aiming to distribute the Philippines' economic growth more evenly across the country.

According to Philippines News Agency, speaking at the company's annual stockholders' meeting, there is a noticeable gap in modern retailing, banking, and integrated property services outside of Metro Manila. "Our strategy is to broaden our nationwide coverage, creating new markets and enhancing accessibility and inclusivity in these sectors to address these disparities and generate more opportunities in underserved areas," DyBuncio explained in a recorded report.

SMIC's senior vice president for finance, Franklin Gomez, revealed on the sidelines of the meeting that the company plans a capital expenditure (capex) of between PHP110 billion and PHP120 billion for this year, not including its banking sector investments. This is a significant increase from the PHP80 billion capex in 2023. The majority of this year's capex, around PHP100 billion, is allocated to SM Prime Holdings, Inc., for developing integrated properties nationwide.

This year, SM Prime is set to open four new malls in the National Capital Region and three in provincial locations. Additionally, SM Development Corp. aims to launch 8,000 to 10,000 residential units across northern Philippines and in the regions of Visayas and Mindanao in 2024. Meanwhile, the SM minimart grocery chain, Alfamart, is looking to inaugurate at least 400 new stores.

The banking segment of SMIC, which includes BDO and BDO Network Bank, plans to expand by opening 100 to 120 new branches across the country. "The provincial areas are experiencing faster growth than the National Capital Region. We are directing a significant portion of our investments to these areas, anticipating that this will also bolster our growth as economic activities increase," Gomez stated.

Following its acquisition of the Philippine Geothermal Production Company, SMIC aims to double its steam production from the current 300 megawatts in the medium term. Moreover, its 2GO Group, Inc. has added two new ships this year to enhance connectivity and logistics across the islands.

SMIC chairman Amando Tetangco Jr. emphasized the importance of logistics and renewable energy to the company's long-term investment strategy, aiming for mid-teen returns. "Effective logistics are crucial for ensuring that economic growth extends beyond Metro Manila and benefits the entire country," said Tetangco, a former central bank governor.

QUEZON CITY - The National Economic and Development Authority (NEDA) announced plans on Monday to request an increased budget for its Innovation Fund for the coming year, aiming to expand it to PHP200 million.

According to Philippines News Agency, speaking at the 2024 National Innovation Day Celebration at Novotel Manila Araneta City, the proposed budget increase is intended to support broader initiatives, including a new innovation competition.

The agency plans to use part of the increased funds to launch the Presidential Philippine Innovators Award, an ambitious program aimed at recognizing outstanding innovations across the country, including contributions from micro, small, and medium enterprises (MSMEs). Edillon detailed that the award structure would be modeled on high-profile global competitions, featuring finalists and semi-finalists, with the awarding slated for next year after a year-long preparation.

NEDA Secretary Arsenio Balisacan elaborated on the significance of innovation for national growth and sustainable development, highlighting the ongoing development of guidelines for both national and regional innovation competitions. He emphasized that these efforts are crucial for enhancing the country's performance in global innovation rankings.

The Philippines has shown progress in the Global Innovation Index, moving up three places to 56th among 132 economies in 2023. This improvement aligns with the targets set in the Philippine Development Plan 2023-2028, which aims for the country to reach the 43rd position by 2028.

MANILA - The stock market saw a modest uptick and the peso ended stronger on Monday, following a directive by President Ferdinand R. Marcos Jr. to facilitate the importation of agricultural products.

According to Philippines News Agency, assistant research manager Claire Alviar noted that easing import restrictions is expected to alleviate short-term supply issues and subsequently help curb inflation pressures stemming from these shortages.

The Philippine Stock Exchange index (PSEi) nudged up by 1.08 points or 0.02 percent, closing at 6,444.08, while the All Shares index also experienced gains, rising by 0.12 percent to 3,425.71. Sector performance was mixed; Mining and Oil surged by 3.10 percent to 8,477.15, followed by Property, which increased by 1.66 percent to 2,458.37, and Industrial, which rose by 0.28 percent to 8,399.44. Conversely, sectors like Services, Holding Firms, and Financial saw declines, though none exceeded 0.67 percent.

Alviar highlighted that despite the positive market reaction, overall investor participation remained cautious. This was evidenced by a net market value turnover of only PHP3.41 billion, which is significantly lower than the month-to-date average of PHP5.16 billion. In terms of market breadth, advancers outnumbered decliners, with 96 stocks advancing, 82 declining, and 47 remaining unchanged.

The peso also exhibited strength, closing at 57.54 against the US dollar, a slight improvement from Friday’s close of 57.65. This strength was noted despite an opening weaker than the previous week’s start. The peso fluctuated between a low of 57.41 and a high of 57.60 throughout the day, with the weighted average resting at 57.51 against the dollar. Trade volume for the peso was lower than the previous week, totaling USD1.16 billion compared to USD1.85 billion.

Bantog, Pangasinan — The small village of Bantog in Pangasinan was alive with celebrations this Friday for the inaugural Kalabaw Food Festival, which marked the local dairy industry's achievements and future aspirations.

According to Philippines News Agency, the Bantog Samahang Nayon Multi-Purpose Cooperative (BSNMPC) and the municipal government organized the festival to celebrate the significant milestones reached in local dairy production. Rolly Mateo Sr., chairman of BSNMPC, shared during the event the cooperative's journey from its humble beginnings in 2009 with just PHP10,000 in capital to its current status with assets over PHP100 million and daily milk production aiming for 500 liters.

The festival, which runs from April 19 to 21, features various activities including a "Dress Your Buffalo Contest", a carabeef cooking contest, and a parade among other community-focused events. Mayor Carlos Lopez Jr. highlighted that the success story of BSNMPC began during the recent pandemic when the cooperative managed to secure significant contracts from national agencies for their milk products, despite initial lockdown challenges.

The local government, as noted by Lopez, plans to further integrate dairy production into Bantog’s agri-tourism projects, aiming to attract tourists to their facilities to witness firsthand the production processes. The Department of Trade and Industry has supported the cooperative's growth with training and equipment, emphasizing a whole-of-government approach to rural development.

Natalia Dalaten, the DTI-Pangasinan provincial director, and other dignitaries praised the cooperative's efforts and the community's resilience in fostering a thriving dairy sector in Bantog, which they celebrated through this new annual festival.

PANGASINAN – Staff Sergeant Virgilio Sanchez, a 46-year-old police officer in Pangasinan, recently received PHP100,000 to aid in his post-kidney transplant recovery. The funds, gathered through donations and a local shooting competition, were presented to Sanchez’s family to help cover ongoing medical expenses.

According to Philippines News Agency, chief of the Pangasinan Police Provincial Office (PPPO), the money was raised by chiefs of police across the province and through a shooting competition. The donation was handed over to Sanchez's wife, Myrna, at the Region 1 Medical Center in Dagupan City, where the surgery was performed last month. Myrna highlighted the significance of the financial support for her husband’s continuous need for anti-rejection medication following his successful transplant.

Sanchez has been battling kidney disease since it was discovered in 2021, enduring regular dialysis for over two and a half years as his condition progressed. The decision to undergo a kidney transplant came after his situation escalated severely, prompting an urgent search for a donor which began in mid-2021.

Colonel Fanged mentioned that this donation is part of Project CARES (Compassionate Act towards Recovery and Encouragement of the Sick), an initiative started by the PPPO in 2023 to support officers facing severe health issues. To date, the program has assisted 21 officers, leveraging community events like the semi-annual shooting competition to gather funds.

"This support is vital for our officers who depend solely on their salaries and have no other income. It helps them sustain themselves and their families during tough times," said Fanged, emphasizing the broader impact of such community-supported efforts.

Iloilo, Philippines — The inflation rate in Western Visayas increased to 3.1 percent in March, up from 2.7 percent in February and 2 percent in January, prompting calls for consumer caution on spending.

According to Philippines News Agency, Chief Statistical Specialist at the Philippine Statistics Authority-Western Visayas, the rise in inflation was primarily driven by higher prices in the food and non-alcoholic beverages sector, which saw a rate increase to 5.5 percent. This sector contributed 59.3 percent to the overall inflation uptrend. Amolar detailed that significant price hikes were observed in cereals and cereal products, meat, and other parts of slaughtered land animals, while vegetable prices declined less steeply than before.

Further analysis revealed that a drop in livestock production also influenced the inflation figures, with production decreasing from 52,000 units in the previous year to 33,000 units in the third quarter of 2023. "The law of supply and demand. When the production, the supply is low, then the demand will pull the price, so it will be expensive," Amolar explained.

Additional factors contributing to the 3.1 percent inflation included a 4.8 percent rise in costs for restaurants and accommodations, and a 2.4 percent increase in transportation prices. Despite these increases, Amolar noted that Western Visayas still ranks as the third lowest in terms of inflation among all regions.

The regional inflation rate remains considerably lower compared to the same month last year when it stood at 9.3 percent, suggesting an improvement in the purchasing power of the peso compared to the previous year.

ROME, Italy - The United Nations Food and Agriculture Organization (FAO) reported a rise in the global food price index for the first time in seven months, marking a 1.1 percent increase to 118.3 points in March from February.

According to Philippines News Agency, the upturn in food prices was predominantly fueled by higher costs of vegetable oils, dairy products, and meat.

Despite the monthly increase, the index still reflected an annual decrease of 9.9 points, or 7.7 percent, from March of the previous year, indicating a complex global food pricing landscape.

The detailed breakdown showed a 2.6 percent decline in the cereal price index to 110.8 points in March, representing a 20 percent drop compared to the same month in 2023. Conversely, the index for vegetable oils saw a significant monthly increase of 8 percent, reaching 130.6 points in March.

The dairy price index continued its upward trajectory for the sixth consecutive month, rising 2.9 percent to 124.2 points in March, while the meat price index also increased by 1.7 percent to 113 points, marking its second consecutive monthly rise. The sugar price index, however, decreased by 5.4 percent to 133.1 points from February to March, although it experienced a 4.8 percent increase when compared to March 2023.

This recent fluctuation in global food prices underscores the volatility of the food market and highlights the ongoing challenges faced by consumers and policymakers worldwide in navigating the dynamics of food availability and affordability.

QUEZON CITY — The Department of Agriculture (DA) announced on Saturday that it will not recommend the imposition of a price ceiling or suggested retail price (SRP) for rice, even as the commodity’s inflation rate reached 24.4 percent in March, marking the highest increase since 2009. The decision comes in light of concerns about the potential long-term impact such measures could have.

According to Philippines News Agency, the DA believes that setting a price cap or SRP could have significant future repercussions. March's inflation rate for rice exceeded the 23.7 percent recorded in February. De Mesa attributed the sharp rise to a low base effect from March 2023, when rice prices ranged from PHP39 to PHP40 per kilogram. He anticipates that the high inflation rate will persist until July but expects it to decrease by August or September, aligning with the prices from the previous year, which neared PHP49.50.

Retail prices for rice have shown a slight decrease from PHP52 last month to approximately PHP50 to PHP49 currently. Despite the monthly decrease, prices remain higher compared to the previous year. In response to these challenges, the DA’s strategy focuses on enhancing rice production levels, reducing the costs of production, and minimizing post-harvest losses. De Mesa highlighted the Philippines' comparable productivity levels with Vietnam and Thailand, emphasizing the similarity in rice varieties and technology used. However, he pointed out that the Philippines faces higher production costs, with local costs reaching PHP12 to PHP14 per kilogram compared to Vietnam’s PHP6.

The Rice Tariffication Law has allocated PHP5 billion annually towards mechanization efforts to decrease labor costs. Additionally, the DA is optimizing rice variety selection to ensure efficient milling and improved rice recovery rates. Efforts are also underway to modernize the logistics chain, with a particular focus on improving the infrastructure of farm-to-market roads, including the development of small bridges connecting key production areas.

MANILA - Leading business organizations in the Philippines have signaled their willingness to adopt 'heat breaks' for certain employees amid rising temperatures, provided they maintain autonomy over the policy's application. The Employers' Confederation of the Philippines (ECOP) and the Federation of Philippine Industries (FPI) responded to a legislative initiative aimed at protecting workers from the health risks associated with extreme heat.

According to Philippines News Agency, ECOP President Sergio Ortiz-Luis, Jr., emphasized the importance of flexibility in implementing the proposed breaks, suggesting that while guidelines could be beneficial, mandatory legislation might lead to misuse. The proposal, put forward by Senate Minority Leader Aquilino Pimentel III, draws inspiration from the United Arab Emirates' regulations, advocating for additional rest periods during intense heat and strict adherence to occupational heat safety standards.

Pimentel's initiative aims to address the vulnerabilities of outdoor workers to heat-related illnesses, suggesting that such measures are critical to maintaining productivity and ensuring worker welfare. However, Ortiz-Luis pointed out that these 'heat breaks' should be targeted primarily at employees working in direct sunlight for prolonged periods, as they face significant health risks.

Echoing Ortiz-Luis's sentiments, FPI Chairman Jesus Arranza expressed support for the initiative, recognizing the responsibility of management to safeguard employee health and productivity. Arranza stressed the need for a clear definition of eligible types of work, indicating that indoor workers, such as those in air-conditioned environments, should not qualify for these breaks.

The debate over 'heat breaks' underscores the broader challenge of balancing worker protection with operational efficiency, particularly in sectors where exposure to extreme heat is a regular occupational hazard.