DEPT. OF SCIENCE AND TECHNOLOGY
PHILIPPINE STATISTICS AUTHORITY
2018 BANTOG DATA MEDIA AWARDS CHAMPION
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Friday, January 18, 2019 Vol. 14 No. 100
Figures from the BSP showed that FPI to the country hit a net inflow of $1.204 billion by the end of last year. This is a stark reversal from the $194.5 million in net outflows seen at the end of 2017. FPI are known as “ hot” or
“specu lative” money because they are easily pulled in and out of the local platforms should there be slight changes in global and local sentiment. This type of foreign investment is usually a measure of
GOVT NIXES SHORTAGE FEARS, PUTS 4% DUTY ON CEMENT IMPORTS By Elijah Felice E. Rosales @alyasjah
@BcuaresmaBM
HE Philippines proved to be an attractive destination for shortterm foreign investments, as foreign portfolio investments (FPI) returned to the inflow territory in 2018, according to the latest data from the Bangko Sentral ng Pilipinas (BSP).
the global economy’s investing sentiment to the Philippines in short-term prospects for yields, in contrast to foreign direct investments (FDI), which are placed in the Philippines in the search for long-term yield.
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HE government on Thursday decided to protect domestic cement manufacturers by imposing a provisional tax of P8.40 per bag on imports in a move that could result in a shortage of the construction commodity. Trade Secretar y Ramon M. Lopez said a safeguard tax of 4 percent, or equivalent to P8.40, per bag will be imposed on cement imports starting February. He argued the surge in imports in the past five years injured local players, and there is a need now to protect them. Lopez pushed on with his decision to place a safeguard duty on cement in spite of warning from importers that doing so could lead to a shortage, as domestic manufacturers are apparently
The FPI net inflow in March 2018, a surge attributed to a billion-dollar inflow in the first week of the month via large investment in a holding company Hot money investments during the year came mostly to the country’s stock market, as 71.4 percent went to listed companies. Philippine government securities were the second destination of hot money inflows during the year with 20.2 percent of the total during the period, while other peso debt instruments got the remaining 8.3 percent. See “Hot money,” A2
Hanjin could be naval base, govt supplier of ships–Lorenzana By Rene Acosta
@reneacostaBM
& Cai U. Ordinario
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@caiordinario
HE Department of National Defense favors the proposal for the government to take over the shipbuilding facility in Subic of the Hanjin Heavy Industries and Construction Co.-Philippines (HHIC-Phil) Inc. so that it can use its site as a major naval base while supplying the government’s requirement for military and civilian ships. A court in Olongapo City this week granted HHIC-Phil’s petition for receivership, which it filed last January 8 in a bid to seek protection from creditors to which it owes a total $412 million. Local economists, however, sounded a warning against any government takeover of the facility, saying the state had no business taking over an enterprise that can be efficiently run by the private sector. “Wholly, the government will take over. We will settle their liabilities with the banks and then after that, we will bid it out to interested parties for them to assume as majority [owners]
PESO EXCHANGE RATES
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incapable of supplying the country’s requirement. “With the elements of surge and injury established, [the] DTI [Department of Trade and Industry] is mandated to impose a safeguard duty. In determining the amount of duty, however, the DTI balances the interests of all stakeholders—and has given particular attention to ensuring that supply remains steady and that prices will not increase,” Lopez said. He said the government found the P8.40-per-bag duty the right amount that will ensure prices and supply are stable while the protectionist measure is in place. According to Lopez, imports will still be allowed and should continue to promote competition. He also claimed domestic capacity is at 35 million metric tons and can meet the demand estimate of about 25 million MT. See “Cement,” A2
JFC bullish on 4 sectors, but warns vs tax perk loss
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“We will have a naval base there, and then we will have shipbuilding capability to build our ships, anyway [Vice] Admiral [Robert] Empedrad said we are ordering 20 ships in the next 10 years, and it does not still include the Coast Guard there, which also needed ships.”—Lorenzana
and the government becoming a minority owner so that we will have control [over the facility],” said Defense Secretary Delfin Lorenzana on Thursday. The government’s takeover of Hanjin was the most feasible solution seen by Lorenzana and even by some senators in order to ensure that it will not fall to China, which reports said was very interested in acquiring Hanjin. Lorenzana said the takeover was among t he options t hat he and the country’s economic managers, inc lud ing Finance Secretary Carlos Dominguez III, discussed when they met with President Duterte and Hanjin’s case was raised.
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PHL attracts $1.204B in ‘hot money’ last year $1.132B T By Bianca Cuaresma
2017 EJAP JOURNALISM AWARDS
NEWLY built high-rise buildings mark the skyline of the Fort Global City in this 2018 file photo. Foreign investors said they are bullish about the growth of four sectors this year, but warned this growth could be thwarted if the government insists on overhauling tax incentives. NONIE REYES
DA usec, stakeholders seek veto of rice tariff bill By Jasper Emmanuel Y. Arcalas @jearcalas
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DAY after the rice tariffication bill was transmitted to Malacañang, rice industry stakeholders, including a top official of the agriculture department, urged President Duterte to veto the measure, particularly provisions that seek to deregulate the National Food Authority (NFA). Agriculture Undersecretar y
Segfredo R. Serrano said he supports the call to remove the provision under Senate Bill 1998 that removes the regulatory power of the NFA to control the entry of imported rice in the country. Serrano pointed out that what the President certified as urgent legislation is a bill that would convert the country’s quantitative restriction (QR) on rice imports into tariffs and not a law, like SB 1998, that would fully
liberalize the sector. “That’s just how I look at it. Unless they interpret that when you tariffy you fully liberalize [the sector]. But, of course, that is not the case,” he told the BusinessMirror in an interview. “At least at my level that’s how I look at it. And this is in consultation with farmers and stakeholders and even our experts, including trade lawyers,” he added.
OREIGN investors are bullish that four sectors will accelerate at a solid rate this year, but warned this growth could be thwarted if the government insists on overhauling tax incentives. The Joint Foreign Chambers of the Philippines (JFC) said it expects the “creative, infrastructure, manufacturing and tourism sectors to grow in 2019 at a solid rate.” It dubbed the creative economy, comprised of media, publishing and the arts, as “the country’s newest sunrise industry.” A report from the United Nations Conference on Trade and Development (Unctad) recently listed the Philippines as a leading exporter of creative goods globally among developing economies. “Creative goods exports increased from $776 million in 2005 to $915 million in 2014. Design goods accounted for the largest share of exports with fashion goods at $279 million, interior design at $221 million and toys and jewelry combined at $116 million for 2014,” the report read.
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n US 52.1660 n JAPAN 0.4785 n UK 67.2055 n HK 6.6514 n CHINA 7.7192 n SINGAPORE 38.5017 n AUSTRALIA 37.4135 n EU 59.4432 n SAUDI ARABIA 13.9080
See “JFC,” A4
Source: BSP (17 January 2019 )