Category: Economy

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.

MANILA - A new legislative proposal, Senate Bill 2625, is set to drive advancements in the Philippine corn industry, recognized as a vital component supporting the nation's livestock and poultry sectors. The bill, introduced as a complementary measure to the Livestock, Poultry and Dairy Industry Development Act, intends to enhance the industry's productivity and global competitiveness.

According to Philippines News Agency, the bill's proponent, strengthening the corn industry is crucial due to its integral role in the agricultural sector, especially as a primary feedstock for livestock and poultry. In detailing the bill under Committee Report 246, titled "An Act to Develop the Philippine Corn Industry," Villar highlighted that 40 to 60 percent of animal feed composition is derived from yellow corn, underlining the commodity's significance.

The Philippines faces an annual shortfall of 3 to 5 million metric tons of corn, indicating a pressing need to bolster domestic production. In 2023, the corn sector, in conjunction with livestock and poultry industries, accounted for 27.17 percent of the gross value added in agriculture, providing employment to over 1.28 million corn farmers and 2.8 million individuals in associated sectors.

Despite its critical role in the agricultural economy, the yellow corn industry encounters numerous challenges that necessitate increased government support. To address these issues, SB 2625 proposes the establishment of the Corn Competitiveness Enhancement Fund, supplementing the industry's annual budget with a PHP3 billion allocation sourced from tariffs on imported corn and related feed ingredients. The fund's allocation strategy aims to dedicate 80 percent to yellow corn development and 20 percent to white corn and indigenous varieties enhancement.

Villar emphasized the urgent need for the Philippines to catch up with its Asian neighbors in yellow corn production, noting that the country ranks 8th despite a yield increase from 2018 to 2022. The proposed fund is viewed as a strategic investment to elevate the industry, improve yields, and support the myriad of stakeholders reliant on corn cultivation and processing.

MANILA - The Philippines set a new milestone in its trade history by reaching over USD 100 billion in export revenues in 2023, despite facing global trade hurdles.

According to Philippine News Agency, data from the Bangko Sentral ng Pilipinas (BSP) show that the nation's exports of goods and services totaled USD 103.6 billion, marking a significant increase from the previous year.

The DTI highlighted that this achievement represents the first occasion the Philippines' export revenues have crossed the USD 100 billion threshold, with a noted 4.8 percent growth over 2022's USD 98.8 billion. Services exports, particularly from the information technology and business process management (ITBPM) sector and tourism, were key drivers of this growth, experiencing a 17.4 percent rise to USD 48.29 billion in 2023.

Despite the overall positive trend, the exports of goods faced a downturn, contracting by 4.1 percent to USD 55.32 billion, impacted by a decline in electronics exports. The DTI underscored the need for diversifying export products and enhancing sector competitiveness to sustain growth and mitigate such declines.

In response to these results and the gaps to the ambitious Philippine Export Development Plan (PEDP) 2023-2028 target, DTI Secretary Alfredo Pascual emphasized the commitment to advancing export sector strategies, fostering government-private sector partnerships, and improving the national export framework to enhance global trade presence and innovation.

The department remains dedicated to supporting Filipino exporters through tailored programs and initiatives aimed at bolstering their market positions and addressing challenges in the international trading arena.

MANILA - The Philippine Stock Exchange index (PSEi) marked significant gains as trading resumed after the Holy Week, driven by positive developments in regional markets.

According to Philippine News Agency, Inc., the PSEi advanced by 1.11 percent to close at 6,979.81, buoyed by favorable economic indicators from China that spurred regional optimism. The All Shares index also saw an uptick, rising by 0.80 percent to 3,633.40.

Sectoral performance was mixed, with Holding Firms and Financials both registering a 1.51 percent increase, demonstrating strong investor confidence. In contrast, the Industrial sector experienced a slight decline. The Property, Services, and Mining and Oil sectors also contributed to the day's positive momentum.

Market analysts attribute the bullish local market trend to China's expanding factory activity, which has instilled confidence in the regional economic outlook. This rebound is deemed beneficial for the Philippines, impacting various sectors, including trade and tourism.

Trading volume on the exchange reflected vibrant activity, with advances outnumbering declines. The market's net value turnover underscored active participation, amounting to PHP5.01 billion for the session.

In the foreign exchange realm, the Philippine peso exhibited stability against the US dollar, with minor fluctuations throughout the day. The currency hovered close to its previous close, ending the session at 56.26 against the dollar. Despite a decrease in trade volume compared to the previous week, the peso's performance reflects underlying steadiness amid variable market dynamics.

CEBU CITY - In response to the escalating effects of the El Niño climate pattern, Cebu City's government is assessing additional villages for inclusion under a state of calamity.

According to Philippine News Agency, who heads the City Council's committee on disaster risk reduction and management, the aim is to extend support to more areas impacted by the adverse weather conditions.

The assessment follows a recent City Council resolution that declared 28 villages in a state of calamity, mainly affecting the city's food-producing regions. The move was driven by the necessity to address the detrimental impacts of El Niño on agricultural activities, especially in mountainous locales.

Currently, the calamity declaration covers several villages where agricultural yields have been significantly affected. However, the City Agriculture's Office has identified additional barangays suffering from the dry conditions, prompting a review of the declaration's scope.

Mayor Michael Rama has indicated his support for broadening the calamity status to aid more communities affected by El Niño. He has highlighted the proactive steps taken, such as the deployment of water tankers by the Metro Cebu Water District to assist drought-stricken areas.

Data from the City Disaster Risk Reduction and Management Office underline the urgency of the situation, with over 500 farmers and substantial agricultural land in the declared areas requiring immediate assistance. The city's readiness to respond is backed by substantial calamity and disaster risk reduction and management funds earmarked for such emergencies.

NEW YORK - Global oil markets experienced upward price adjustments on Monday, largely influenced by escalating tensions in the Middle East and ongoing conflicts, notably the Russia-Ukraine war, that threaten to constrict oil supply channels.

According to Philippine News Agency, Brent crude, the international oil benchmark, was trading at $87.24 per barrel in the early trading hours, marking a 0.32 percent increase from its last close at $86.96. Concurrently, West Texas Intermediate (WTI), the U.S. benchmark, saw a modest rise to $83.42 per barrel, up by 0.30 percent from $83.17 at the close of the previous session.

The geopolitical strife between Israel and Palestine, along with the protracted Russia-Ukraine conflict, has intensified concerns over global energy supplies, subsequently pushing oil prices higher. Despite a UN Security Council resolution advocating an immediate ceasefire in Gaza, Israeli military operations persist, further exacerbating regional instability.

Moreover, the situation has been aggravated by actions from Iran-backed Houthis in Yemen, who have targeted maritime vessels associated with Israel in the Red Sea. Retaliatory measures by the U.S. and the UK against Houthi infrastructures have further escalated tensions. Notably, the U.S. disclosed it had neutralized four Houthi unmanned aerial vehicles in recent defensive actions, signaling a continuing cycle of retaliation.

Additionally, the oil sector faced disruptions from drone assaults on Russian refineries, resulting in operational halts that question Russia's ability to sustain its export levels. Given that Russia accounts for about 8 percent of the global oil supply, these interruptions have direct implications on the global market, particularly affecting the availability of refined oil products and influencing fuel prices.

These cumulative factors contribute to a tighter global oil market, prompting analysts to forecast potential spikes in Brent crude prices, potentially reaching or exceeding $100 per barrel within the year, especially in light of Russia's announced production cuts of 471,000 barrels per day for the upcoming quarter.

ISTANBUL — The global real estate and infrastructure market achieved a historic milestone, reaching a valuation of USD 365.51 trillion in 2023, as reported by Trem Global, a prominent Turkish real estate firm. This growth comes amid ongoing geopolitical tensions and demonstrates the sector's resilience and strategic importance worldwide.

According to Philippines News Agency, which cites findings from Precedence Research, the surge in the global real estate market is particularly notable within the residential sector, despite the backdrop of international challenges. Murat Meric, the deputy general manager of sales at Trem Global, highlighted Turkey's significant role in this expansive market, noting the country's appeal to a diverse array of investors due to its dynamic economy and varied real estate offerings.

Meric emphasized Turkey's pivotal position in connecting international real estate markets, with its competitive advantages drawing heightened interest. The country has witnessed a broad spectrum of investments from 52 different nationalities between 2022 and 2023, with a notable shift in 2024 as demand increasingly originates from Western nations. This trend is expected to diversify Turkey's real estate market further and contribute to its economic growth and the sector's innovative evolution.

The firm also pointed out that real estate's future seems geared towards smart, sustainable, and diverse developments. Factors such as the emergence of co-living spaces, digitalization of transactions, and emphasis on sustainable practices are increasingly prominent. Additionally, the influence of significant projects in regions like Saudi Arabia, Dubai, and the popularity of cities such as Istanbul, which have attracted a high volume of international attention, underscores the sector's global interconnectivity and appeal.

Trem Global also noted that while adversities like wars and natural disasters have impacted population distributions, the lure of better economic prospects, educational opportunities, and quality of life continues to drive migration to both developed and developing nations. Countries like the USA, Germany, Canada, Australia, Turkey, and the United Arab Emirates are poised to be key destinations for migrants in 2024, influencing real estate demand dynamics.

The firm concluded that Turkey remains a focal point for international investors, with its strategic location, burgeoning tourism, diverse real estate options, and climatic benefits maintaining its attractiveness in the global market.

TARLAC CITY — Grandmaster Eugene Torre, a distinguished figure in the world of chess, will engage with young chess aficionados in a simultaneous exhibition event on April 9, aligning with the Araw ng Kagitingan (Day of Valor) festivities in Luisita, Tarlac City.

According to Philippines News Agency, this exhibition aims to cultivate interest and participation in chess among the youth, leveraging Torre's prominence and expertise. At 72, Torre continues to inspire the next generation of players, as demonstrated by his recent victory at the Guam International Open Chess Tournament, where he won all nine games, underscoring his enduring prowess in the sport.

The event in Tarlac City is not just a platform for competition but also serves as an educational experience, offering young players the chance to learn directly from a seasoned grandmaster. Beyond the exhibition, the initiative includes a mini-tournament involving local chess clubs and societies, which underscores the community's commitment to fostering strategic thinking and sportsmanship through chess.

Participants in the event will include notable figures from the local chess community, such as NM Marlon Bernardino of the Bayanihan Chess Club and other representatives from regional chess groups. The occasion also reflects the broader ambitions of the IIEE Tarlac chapter to utilize chess as a means of building community and enhancing educational opportunities.

The proceeds from the tournament are earmarked for IIEE's Oplan Dagitab project, which focuses on enhancing electrical safety and infrastructure in local schools. This initiative will benefit several educational institutions in Tarlac City and nearby areas, demonstrating the chess community's commitment to social responsibility.

By hosting such events, the IIEE and the local chess community in Tarlac continue to highlight the game's educational and cultural significance, promoting it as a valuable tool for cognitive development and social engagement.

MANILA, Philippines — The Philippine government and Japan have formalized an agreement for a substantial loan amounting to JPY250 billion (approximately PHP92.8 billion) intended to fund significant infrastructure developments, including the Dalton Pass East Alignment Road and the Metro Manila Subway (MMS) project.

According to Philippines News Agency, the financial package will be divided into two distinct portions: JPY100 billion is earmarked for the creation of a bypass route at Dalton Pass, a crucial connector between Metro Manila and north-central Luzon, enhancing the accessibility and integration of Regions I and II with the National Capital Region. The remaining JPY150 billion is designated as the third installment of Japanese assistance for the Metro Manila Subway initiative, marking continued support in a critical urban development venture.

Manalo highlighted the importance of this partnership, noting Japan's role as a strategic ally in the Philippines' ambitious infrastructure enhancement efforts, particularly within the "Build Better More" framework. The projects are expected to significantly improve regional connectivity and urban transportation efficiency.

The Japanese Embassy in Manila expressed optimism that the new road at Dalton Pass will not only provide a resilient and reliable alternative route, enhancing logistical efficiency but also stimulate economic growth across Luzon. Additionally, the embassy emphasized the potential benefits of the MMS project in alleviating traffic congestion and reducing air pollution in the densely populated capital.

This loan supplements previous allocations for the subway project, which received its first tranche in 2017 and a second in 2021. With an interest rate of 0.3 percent per annum for project costs and 0.2 percent for consulting services, the loan terms also include a generous 40-year repayment schedule, complemented by a 10-year grace period, demonstrating a strong, ongoing financial collaboration between the Philippines and Japan in pursuit of sustainable infrastructure development.

PASUQUIN, ILOCOS NORTE—The introduction of lambaklad, a sustainable fish trap system, has significantly enhanced the livelihoods of the Dilavo Fishermen Association (DFA) members in Pasuquin, Ilocos Norte.

According to Philippines News Agency, a senior aquaculturist with the Bureau of Fisheries and Aquatic Resources-Ilocos Region (BFAR-1), this eco-friendly technology has led to a notable increase in the local fishers' catch since its implementation in May 2023.

The DFA, buoyed by favorable weather conditions this Tuesday, showcased a remarkable haul of 216 kilos of tuna, underscoring the efficacy of lambaklad. Eúng Ramos, expressing his gratitude on Facebook, reflected the community's appreciation for this boon. Since the resumption of lambaklad usage on March 8, following repairs necessitated by Super Typhoon Egay's damage in July 2023, the association has reported an impressive collective catch of around 500 kilos of tuna.

Lambaklad, which marries the Filipino words for net ('lambat') and fishpen ('baklad'), is a stationary large-scale fish trap positioned under the sea. This method, based on Japanese fishing technology and adapted by BFAR for local use, enables the DFA's 120 members, including women and youth, to efficiently harvest marine resources close to shore, within 100 to 200 meters from the coastline.

The association's members actively participated in skills training, contributing to the construction, operation, management, and upkeep of the lambaklad infrastructure, which represents a PHP2.8 million investment by the agency. Joel Queddeng, the DFA president, highlighted the transformative impact of this initiative, noting a dramatic increase from an average daily catch of five to 10 kilos to several hundred kilos under optimal conditions.

With ongoing technical support and monitoring from BFAR, the lambaklad project continues to demonstrate its value, enhancing the economic stability and food security of the Pasuquin community. The area's waters are rich with diverse species, including tuna and moonfish, contributing to the robustness of the local fishing industry.