B.O.I. OVERSHOOTS 2019 INVESTMENTS GOAL By Elijah Felice E. Rosales @alyasjah
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NVESTMENTS registered with the Board of Investments (BOI) hit an all-time high P1.14 trillion last year, as capital poured by foreign firms jumped over threefold to overcome uncertainties on the domestic and international fronts. Data from the BOI showed its investment pledges in 2019 grew 24.67 percent to P1.14 trillion, from P914.96 billion in 2018. As such, the BOI hit its objective of registering P1 trillion worth of investments this year, marking the third consecutive
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Friday, January 17, 2020 Vol. 15 No. 99
‘Prolonged US-Iran row more troubling for PHL’
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By Cai U. Ordinario
@caiordinario
NLIKE the US-China trade tiff, a prolonged US-Iran conflict would prove to be more challenging for the Philippines, according to the National Economic and Development Authority (Neda). The planning agency’s comment was sought on Peterson Institute for International Economics Nonresident Senior Fellow Adnan Mazarei’s view that the US-Iran conflict may be receding but it could still
spark a new crisis in the Middle East. Socioeconomic Planning Secretary Ernesto M. Pernia told the BusinessMirror that a prolonged US-Iran conflict would require the
government to prioritize the plight of millions of overseas Filipino workers (OFWs). “The [presence of many] OFWs further complicates our challenge,” Pernia said. “[This involves] having
“The [presence of many] OFWs further complicates our challenge. [This involves] having to repatriate them, [facing the] reduction in remittances, and placing them [OFWs] in jobs.”—Pernia
to repatriate them, [facing the] reduction in remittances, and placing them [OFWs] in jobs.” An increase in refugees and migrants is one of the spillover effects of a prolonged US-Iran conflict, according to Mazarei. Data from the Philippine Statistics Authority (PSA) showed there were around 2.3 million OFWs in 2018—a number much less than See “US-Iran row,” A8
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CONTRACT REVIEW NOT SEEN TO AFFECT PHL INVESTORS NOW, BUT...
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HE Philippines will not lose any of its existing investors on the government’s move to review business contracts, but it will scare off some prospective firms that intend to set up shop here, an envoy has warned. Swiss Ambassador to the Philippines Alain Gaschen said Swiss firms operating here intend to stay in spite of President Duterte’s string of actions against some of the country’s corporations. Swiss firms, he described, find the business environment in the Philippines “stable” and would likely retain their shops here for the long term. “Some of our investors have been here in the Philippines for about 50 years, even 100 years, and it will stay that way as long as they find the business environment stable,” Gaschen
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@jearcalas
See “Meat,” A2
See “BOI,” A2
P25.00 nationwide | 5 sections 44 pages |
By Bianca Cuaresma
By Jasper Emmanuel Y. Arcalas
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this year will be a 10-percent growth, although he admitted it will be now difficult to achieve such a number given the high base. The BOI is an attached agency of the Department of Trade and Industry. “Plus 10 percent of [P1.14] trillion. It’s better to beat your target so let’s be conservative,” he replied when sought why only 10 percent when the BOI appears to be on a roll the past years. “The base is already large, although there are a lot of big-ticket items that can still be registered and encouraged.” The investment promotion
said in an interview with the BusinessMirror. However, he warned that the President’s move to review the contracts, particularly that of the state with water firms Manila Water and Maynilad, could discourage prospective investors from coming in. He cited in particular Duterte’s threat of a military takeover of the two firms, which he said will never sit well with any investor. “However, prospective investors might be afraid to come in based on what they hear from the outside. It’s not good to hear of military takeover of a business, no one wants that. Those who are here will not be distracted by the President’s words, but those who are considering [to do business here], they might be discouraged,” Gaschen explained. See “Contract review,” A2
Economist says GDP likely hit 6.6% in Q4
‘PHL meat imports likely flat due to costly pork’ HE country’s total meat imports last year was likely flat due to the jump in international pork prices, which caused traders to reduce their purchases, the Meat Importers and Traders Association (Mita) said. Mita President Jesus C. Cham estimated that total Philippine meat imports settled at around 850,000 metric tons (MT), but the purchase of pork products fell due to the disruption caused by the spread of African swine fever (ASF). Cham also said it is possible the chicken imports went up last year and the volume was enough
year the agency posted a record high. Foreign capital surged nearly 223 percent to P335.74 billion, from P103.96 billion, while those of domestic slipped 0.74 percent to P804.97 billion, from P810.99 billion. Once operational, projects bankrolled by these investment pledges will generate an estimated 61,622 jobs. The BOI in 2019 approved 376 fresh projects all in all, from 371 in 2018. In an interview with reporters on Thursday, Trade Secretary and BOI Chairman Ramon M. Lopez said the BOI’s target for
EXIT PLAN A cow is hauled into a truck on Thursday in Barangay Malinis in Lemery, one of the Batangas towns affected by Taal Volcano’s continuing activity. There has been great concern about the condition of thousands of animals in ashfall-hit areas; both because of the pitiful state of those left behind in the sudden evacuation, and also because the Calabarzon region accounts for a big part of the food supply. The region is the second top producer of beef in the country. See stories on Taal on pages A2 and A3. BERNARD TESTA
@BcuaresmaBM
HE local economy likely regained speed in the last quarter of 2019, a local economist said, as both government spending and household consumption likely peaked toward the end of the year. In a recent commentary on the local economy, Security Bank economist Robert Dan Roces said the economy grew the strongest in the last three months of the year, as problems in inflation and government spending were already solved. In the first half of 2019, the economy was affected because of the government’s inability to pass the budget on time, thereby halting disbursement for projects on infrastructure and construction. Inflation was also still relatively
elevated coming from its peak in end 2018 when inflation accelerated above target range due to rice and oil price issues. “Our GDP forecast for Q4 2019 is 6.6 percent. Capital formation meltdown was what really hurt us in the past quarters, plus delayed spending due to a delayed budget. With inflation returning to the 2 to 4 percent central bank target range in December and the reserve requirement [RR] cuts lending increased liquidity, capital formation looks better for the quarter. This plus household consumption that was higher especially in the holiday seasons,” Roces said. For 2020, Roces said he expects inflation to remain within the target range save some bump to the consumer price index (CPI) in the first months due to Taal Volcano’s
US 50.7000 n JAPAN 0.4614 n UK 66.1179 n HK 6.5246 n CHINA 7.3585 n SINGAPORE 37.6672 n AUSTRALIA 34.9931 n EU 56.5457 n SAUDI ARABIA 13.5149
See “GDP,” A2
Source: BSP (16 January 2020)