‘Close borders, cut Omicron exposure risk’ By Cai U. Ordinario @caiordinario
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LOSING the country’s borders is one of the most immediate courses of action the government must take to prevent the latest Covid-19 variant, Omicron, from reaching Philippine shores, according to local economists. T he new var iant is a threat, e s p e c i a l l y w it h t he hol id ay s coming up and more foreigners being a llowed to travel to the Philippines, De La Sa lle Universit y economist Mar ia Ella Oplas told BusinessMirror. The holidays usually bring in Overseas Filipino Workers (OFWs) who are eager to spend Christmas
with their loved ones, while foreigners living in temperate regions usually want to relax in tropical countries like the Philippines. This year’s influx of OFWs is expected to be heavier since many of them were unable to come home for the holidays in December 2020. “My recommendation is to protect the borders. Do not allow people with a history of travel to countries with positive cases to enter,” Oplas said. “We should be more restrictive. [We have to be] more protective in terms of our measures.” Oplas said that while this will be a setback to some industries, this is a fair measure considering that this could help prevent placing the country in another strict lockdown,
which, she said, the economy can no longer afford. “It is better that we do protective preventive measures than get exposed again. We have a lot to lose,” Oplas said. “We should do it now so that we can open just before Christmas. If it gets contained, we can open it again.” Ateneo Center for Economic Research and Development (ACERD) Associate Director Ser Percival K. Peña-Reyes said closing the country’s borders would be effective but should still adhere to the standards set by the World Health Organization (WHO). What is needed, Peña-Reyes told this newspaper, is for travel restrictions to be put in place swiftly and
for government to be proactive in imposing them. Previous instances when the country had the opportunity to impose travel restrictions did not prevent the spread of Covid-19. That was mainly because the decision was not made immediately, he said. “Kung papatay patay [If we’re slow] and we get caught flat-footed, [that’s risky] We were too reactive instead of proactive before. We should learn from that,” PeñaReyes said. “It’s a delicate balancing act. We need to push testing and tracing to be properly informed of our decisions. Blanket/shotgun approaches could have dire consequences on the economy.” See “Omicron,” A2
EXPORTS, NATL GOVTREMITTANCES BORROWINGS UP AGAINST HEADWINDS FOR 10 MOS DIP TO P2.75T w w
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n Tuesday, July 12,29,2022 277 Monday, November 2021Vol.Vol.1717No.No.52
Omicron risk FDI net inflows up 48.3% spurs revival to $989M in April–BSP of quarantine
By Bernadette D. Nicolas
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P25.00 P25.00 nationwide nationwide || 22 sections sections 24 20 pages pages ||
@BNicolasBM
HE national government’s gross borrowings as of end-October shrank by almost 6 percent year-on-year to P2.75 trillion.
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ONG -TER M investments made by foreign investors to the Philippines surged in April this year, the highest since December last year, the Bangko Sentral ng Pilipinas (BSP) reported. Data released by the Central Bank showed that foreign direct investments (FDI) net inflows grew 48.3 percent from last year, to reach $989 million in April 2022 from the $667-million net inflows recorded in the same month last year. In December 2021, FDI net inflows grew 59 percent. However, in April 2021, investments made by foreign investors posted a growth of 112.6 percent. “This [surge in April FDI net inf lows] positive development brought the FDI net inflows for the first four months of the year to $3.4 billion, higher by 12.1 percent than the $3.1 billion net inflows in January-April 2021,” BSP said. In April 2022, net inflows of FDI rose following the increases recorded across all components, led by non-residents’ net investments in debt instruments which posted growth of 40.6 percent. BSP said data showed equity capital placements also expanded, programs as President mostly investments fromDuterte Malaysia, isthe expected to sign the industry United States and Japan. development plan in early 2022. These were channeled primarthe PCA will notesilyRosales to the said construction; real stop its listscientific, of coconut tate;updating professional, and farmers and enjoined them to register in order to reap the benefits of the decades-long idled coconut levy fund. “We will not stop at 3.1 million. We hope that more individuals will register in our coconut farmers registry,” he said. The updating of the coconut farmers registry is mandated by Republic Act (RA) 11524 or the Coconut Industry Trust Fund Act.
rules in PHL By Samuel P. Medenilla @sam_medenilla
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NTER NATIONA L concerns over the possible spread of the more infectious Omicron Co“This [surge in April FDI net inflows] positive vid-19 variant prompted the govdevelopment brought the FDI net inflows ernment to reimpose mandatory for the first four months of the year to $3.4 facility-based quarantine for all billion, higher by 12.1 percent than the $3.1 arriving passengers in the country. billion net inflows in January-April 2021.” Acting Presidential spokesper—Bangko Sentral ng Pilipinas son Karlo B. Nograles announced on Sunday that the Inter-Agency technical;and manufacturing inTask Force for the dustries, the Central Management Bank said. of Cumulative Emerging Infectious FDI net Diseases inflows (IATF) suspended rose due mainly tothe theimplemen35.3-pertation of its in Resolution No. 150cent increase non-residents’ net A (s.2021), effectively imposing investments in debt instruments, stricter protocols for all inbound according to the BSP. travelers. However, reinvestment of earnnote, aIATF Resolution 150ingsToposted cumulative growth of A had allowed fully vaccinated 0.9 percent while net equity other non-visa travelers of from GreenconList than reinvestment earnings areas to enter the country withtracted 37.2 percent. out the need for facility-based quarantine as long as they secure Unctad warning negative Reverse TranscriptionEARLIER, the United Nations Polymerase Chain (RTConference on TradeReaction and DevelopPCR) test within 72 hours prior ment (Unctad) warned that global to their direct departure. foreign investment (FDI) “Except for were countries classified flows in 2021 unlikely to be as ‘Red,’ the testing and quarantine sustained due to the recent global protocols for all inbound internaeconomic issues such as the war tional travelers in all ports of entry in Ukraine. shall comply Seewith “FDI,”the A2 testing and quarantine protocols for ‘Yellow’ list countries,” Nograles said, citing the provision of IATF Resolution No. 151-A. He noted Hong Kong, which has confirmed a case of the Omicron variant, will also fall under the Yellow list countries. The suspension of the rules for “Green List” countries will be in effect from November 28, 2021 to December 15, 2021.
Latest data from the Bureau of the Treasury showed that the government’s gross borrowings during the 10-month period fell by 5.99 percent from P2.92 trillion a year ago. With only two months left for this year, the latest figure is already equivalent to 89.6 percent of its P3.07-trillion borrowing program. Broken down, gross domestic borrowings from January to October settled at P2.23 trillion, down by 5.08 percent from P2.35 trillion in 2020. The bulk of the amount was PEOPLE walk past the mural of Gat Andres Bonifacio at Manila City Hall Underpass. sourced from Fixed Rate Treasury The country will celebrate the 158th birth anniversary of Filipino revolutionary Bonds (P1.19 trillion), followed by hero Gat Andres Bonifacio on Tuesday, November 30. ROY DOMINGO short-term borrowings from Bangko Sentral Pilipinas oratBSP (P540station in Manila. Pump prices of petroleum products will be rolled back Tuesday, July 12, the second straight week of price cuts. Prices per liter of gasoline PUBLIC utilityng jeepneys gas up a gasoline billion), Treasury Bonds/Prewill be cutRetail by P5.70, diesel by P6.10 and kerosene by P6.30. Story on page 5. ROY DOMINGO myo Bonds (P463.3 billion), Retail Onshore Dollar Bonds bilBy(P80.84 Cai U. Ordinario @caiordinario lion). In the same period, there was By Jasper Emmanuel Y. Arcalas dating its registry following the them. This allows everyone to see also a net redemption of Treasury @jearcalas enactment of the Coconut Farmwho are listed in the registry and if Bills amounting to P43.94 billion. ers and Industry Trust Fund law. farmer doesn’t see his name then he Net debt redemption means ORE than 3 million Rosales explained that about shall coordinate with the PCA imthere were more debts repaid comcoconut farmers and 500,000 farmers and he 7/ explained a recent pared to the amount borrowed durBy Jaspercoconut Emmanuel Y. Arcalas pmediately,” h / 2 0 2 2 /0 11 / 7- iatn-10 workers are now regisworkers were added to the PCA’s dialogue with coconut farmers. ing the period. @jearcalas f ilipinos-cant-af ford-nutered with the government’s reg2018 list that had about 2.5 million “On the other hand, if people Meanwhile, gross foreign bortritious-food-sofi-2022/) istry, which serves as the basis coconutOCAL farmersagriculture and farm workers. would names on the broke list and rowings in the same period also indusThe see BusinessMirror for the number of people to be The PCA’s next step is to conthey think they are not coconut contracted by 9.7 percent to P518.7 try leaders have urged the the story that the number of covered by the utilization of the duct angovernment exclusion-inclusion farmers orwho theircannot detailsafford are incorbillion from last year’s P574.4 billion. to fix theprovalFilipinos a P75-billion coconut levy fund. cedure by making the updated rect, they can report it to PCA This was raised through global ue chain by reducing the numhealthy diet rose to 75.2the milPhilippine Coconut Authority farmers’ registry public, providfor immediate action,” added. bonds (P146.17 billion), program ber of middlemen in agriculture lion in 2020 from 74.2 he million (PCA) Deputy Administrator Roel ing everyone the that opportunity to The PCA official that loans (P139.98 billion), euro-detrade to ensure food prices in 2019, according to noted the SOFI M. Rosales said about 3.11 million check the veracity of the list, Rothe completion of the initial list nominated bonds (P121.97 billion), are affordable to consumers. 2022 report. coconut farmers and farm worksalesSpeaking added. in a virtual press of coconut farmers registry would a project loan (P86.41 billion), and “The problem in our country ers have been registered with the “The list willleaders be posted in public be the just huge in time the expected yen-denominated samurai bonds In its latest outlook, the research amongst most major developed marconference, from variis gapfor between the government since it started upspaces where people can easily see rollout of coconut See “3-M farmers,” A2 (P24.19 billion). arm of the Fitch Group expects the ket central banks will weigh on the ous agricultural groups were farm-gate price andlevy-funded the retail See “Borrowings,” A2 Continued on A2 country’s current account deficit to global economic outlook, dampening unanimous in arguing that the price. And the burden of fixwiden further to 4.3 percent of GDP demand for the Philippines’s exports. value chains of commodities ing that should not be on the in 2022 from its initial forecast of n We export slow atn theUK 67.2329have to be revamped to allow Agriculture but USexpect 50.4600 n growth JAPAN to0.4374 n HK 6.4722 n CHINA 7.9013 n Department SINGAPORE of 36.8968 n AUSTRALIA 36.2807 n EU 56.5758 n SAUDI ARABIA 13.4531 Source: BSP (November 26, 2021) 2.4 percent and the 1.8 percent it back of global economic headwinds,” Filipinos to buy nutritious food instead on the Department of posted in 2021. Fitch Solutions said. items. the Interior and Local GovernFitch Solutions said the wider “Historically, remittance inflows The leaders were reacting ment,” said Norberto Chingcucurrent account deficit and tighter have always been a huge contributto the findings of the State anco of advocacy group Tugon global financing conditions will ing factor to the Philippines’s econof Food Security and NutriKabuhayan on Monday. “continue to weigh on the Philippine omy, approximately 10 percent of tion in the World (SOFI) 2022 “If we learned something in peso.” They expect the US Federal GDP in the last decade. However, it that over 75 million Filipithe past it is that imports do Reserve to hike interest rates anis unlikely able to offset the impact nos were unable to purchase not bring down the retail prices. other 150 basis points (bps) in the of the surging goods trade deficit nutritious food as of 2020. Importation is not the solution,” second half of the year. even as secondary income surplus ( R e l a te d s to r y: h t t p s: // Chingcuanco added. “Ongoing supply chain disrupcontinues to remain stable,” it added. businessmir ror .com. See “Agri leaders,” A2 tions and hawkish monetary policies See “Exports,” A2
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OVER 3-M FARMERS LISTED FOR P75-B COCO LEVY FUND
HE country’s export performance and inflow of Overseas Filipino Worker (OFW) remittances may not be able to offset the impact of rising commodity prices on the economy in the coming months, according to Fitch Solutions.
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AGRI LEADERS: CUT MIDDLEMEN LAYERS TO LOWER FOOD PRICES
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PESO EXCHANGE RATES
PESO EXCHANGE RATES n US 55.9710
n JAPAN 0.4112 n UK 67.3723 n HK 7.1313 n CHINA 8.3601 n SINGAPORE 40.0336 n AUSTRALIA 38.3569 n EU 57.0009 n KOREA 0.0433 n SAUDI ARABIA 14.9109 Source: BSP (July 11, 2022)