BusinessMirror July 11, 2019

Page 1

B.O.I. STILL 70% SHORT OF GOALS By Elijah Felice E. Rosales @alyasjah

T

HE Board of Investments (BOI) has a lot of catching up to do in the next half, as its investment haul—standing at P304.4 billion as of June—is still 70-percent short of its target this year. In a report on Wednesday, the BOI disclosed investments it secured from January to June improved 27.41 percent to P304.4 billion, from P238.9 billion during the same period last year. Domestic capital accounted for bulk of the investments in the first half at P235.6 billion. On the other hand, foreign investments grew nearly fivefold to P68.9 billion, from P14 billion, on strong commitments from Singapore (P35.4 billion), the Netherlands (P9.2 billion) and

ROTARY CLUB OF MANILA JOURNALISM AWARDS

2006 National Newspaper of the Year 2011 National Newspaper of the Year 2013 Business Newspaper of the Year 2017 Business Newspaper of the Year 2019 Business Newspaper of the Year

A broader look at today’s business n Thursday, July 11, 2019 Vol. 14 No. 274

FDI flows down 14% from January to April $2.9B L By Bianca Cuaresma

day, as the meager net inflow in April was not enough to prop up the overall influx of investments toward the country in early 2019.

FDI are often the more coveted type of investments as they stay longer in the economy and create job opportunities for locals. They

The total net inflow of FDI in the first four months of 2019, representing a decline of about $500 million from the $3.4 billion in the same fourmonth period last year

are also usually an indicator of long-term sentiment of the global community to the Philippines’s economic dynamics, as FDI are not easily pulled out of the market unlike their shorter-term counterpart, the foreign portfolio investments.

BUSINESS NEWS SOURCE OF THE YEAR DEPARTMENT OF SCIENCE AND TECHNOLOGY

2018 BANTOG MEDIA AWARDS PHILIPPINE STATISTICS AUTHORITY

DATA CHAMPION

P25.00 nationwide | 7 sections 48 pages | 7 DAYS A WEEK

Collective bargaining: The undeveloped instrument for wage fixing and labor policy formulation Rene E. Ofreneo

LABOREM EXERCENS

T

HE divisive and conflict-ridden system of minimum wage fixing in the Philippines requires the development of alternative policy approaches to make the system meet the multiple and yet colliding development goals set by the minimum wage law: decent living wage for the workers, reasonable returns on investments, higher employment, increased productivity and general socioeconomic stability for the country. The joke is that even Albert Einstein would not be able to come up with the mathematical equation that can successfully combine all the factors listed in the law.

See “FDI,” A2

DBM vows to hike IRA of local govts

Continued on A7

‘PHL economy’s engine can’t hack a 7-8% growth, more investments needed’

By Bernadette D. Nicolas

By Cai U. Ordinario

@BNicolasBM

HE Department of Budget and Management (DBM) vowed that the estimated P300-billion increase in the internal revenue allotment (IRA) of local government units (LGUs) would be given in 2022. Along with the hike, DBM Officer in Charge Janet B. Abuel also said on Wednesday during a preState of the Nation Address forum that the agency is still studying the possibility of “re-devolving” services to LGUs. In April this year, the Supreme Court affirmed its decision declaring that the IRA share of all LGUs should be based on the collections of all national taxes, and not only from national internal revenue taxes collected by the government. The SC also moved to implement the new computations in 2022. The High Court ruling stemmed from a petition filed by Batangas Gov. Hermilando I. Mandanas in 2012, questioning the basis of the IRA. Abuel said the DBM is “happy” to provide the increase but the government is not prepared to do it this year. See “IRA,” A2

2018 EJAP JOURNALISM AWARDS

@BcuaresmaBM

ONG-TERM investments made by foreign players in the Philippines are slowing this year, despite better economic conditions for the country compared to 2018, data from the Bangko Sentral ng Pilipinas (BSP) showed.

Foreign direct investments (FDI) were down by about 14 percent in the first four months of the year, the Central Bank reported on Wednes-

See “BOI,” A2

BusinessMirror

www.businessmirror.com.ph

T

Thailand (P8.5 billion). By sector, power made up almost two-thirds of the first-half investments, as it grew 77.81 percent to P192.4 billion, from P108.2 billion in the first semester of 2018. Manufacturing more than doubled to P45.3 billion, from P19.8 billion. Commitments in information technology and communication also jumped to P33.2 billion, from P340 million, while those in tourism leaped to P8.6 billion, from P1.2 billion. Trade Undersecretar y and BOI Managing Head Ceferino S. Rodolfo said the investment body is working double time to meet its objective of getting P1 trillion in investments this year. He said big-ticket projects are in the pipeline and, once they are registered, should inch the BOI closer to its target.

T THE skyline at Makati City, the country’s main financial district, is seen in this July 9, 2019 photo. Despite recent positive economic developments and major reforms, the Philippine economy as it is now is not built to post a growth of 7 or 8 percent, unless investments were infused, an economist said on Wednesday. However, foreign direct investments were down by about 14 percent in the first four months of the year, the Central Bank reported. BERNARD TESTA

Online casinos to overtake call centers in Manila

O

NLINE casinos in the Philippines that employ tens of thousands of foreign workers are set to surpass call centers as Manila’s top new office space users. POGOs, short for Philippines offshore gaming operators, are expected to take up as much as

PESO EXCHANGE RATES n

480,000 square meters of new office space by the end of the ye a r a g a i n st a b out 4 50,0 0 0 square meters by the businessprocess outsourcing sector, accord ing to L eec hiu Proper t y Consultants. As of end-June, online casinos leased 242,000 square me-

ters in Metro Manila against the call-center industr y’s 244,000 square meters, Leechiu said. POGOs are expanding aggressively and they pick locations faster while the outsourcing industry is stalling, CEO David Leechiu said at a briefing in Manila. See “Online casinos,” A8

@caiordinario

HE Philippine economy is not built to post a growth of 7 or 8 percent, Ateneo Center for Economic Research and Development (Acerd) Director Alvin P. Ang said in a forum on Wednesday, even as a ranking government official admitted that growth is not the end-goal of the Duterte administration, but reducing poverty and creating opportunity. Ang said investments are needed to meet the targets of the Philippine Development Plan (PDP), the country’s medium-term socioeconomic blueprint. “The Philippine growth story is intact, that’s a fact, albeit at a slower speed. You cannot expect a 1300 engine car to run like a 2500, so don’t dream that we will grow 7 percent every time because the engine is not built for that yet. We are still getting this infrastructure to run,” Ang pointed out in the Pathways to Peace and Development in the Philippines forum. Ang expects the Philippine economy to post an average growth of only 5.9 percent this year. This is a downward revision from the

Acerd’s 2018 projection of 6.2 to 6.5 percent in 2019. In the second quarter this year, Ang said growth could reach 5.9 percent before increasing to 6.1 percent in the third quarter. In the last quarter of the year, growth is expected to reach 6 percent. He also sees the country’s exchange rate averaging P52 to the dollar; average interest rates for the 91-day T-bills, 5 percent; and inflation to slow to 2.5 percent this year. Remittances growth, Ang said, will likely average 3 percent in 2019. This, he attributed to his observation that remittances are already plateauing. He said that on average, the economy can grow GDP at 5.9 to 6.3 percent. Ang said anything more than this could overheat the economy. “If the government can assure that all the priority bills [are] passed on time, maybe the economy can grow faster but not sustain a 7-percent growth. The economy cannot handle that, it will overheat because there are no other sectors that contribute to economic growth,” Ang told BusinessMirror. See “Growth,” A2

US 51.3270 n JAPAN 0.4716 n UK 63.9996 n HK 6.5740 n CHINA 7.4517 n SINGAPORE 37.6905 n AUSTRALIA 35.5542 n EU 57.5376 n SAUDI ARABIA 13.6869

Source: BSP (10 July 2019 )


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.
BusinessMirror July 11, 2019 by BusinessMirror - Issuu