BUSINESS PH posted $2.9-b BOP surplus in 5 months

By Julito G. Rada

THE Philippines posted a balance of payments surplus of $2.9 billion in the first five months amid the continued structural dollar inflows in the country, a reversal from the $1.5-billion deficit recorded in the same period last year, the Bangko Sentral ng Pilipinas said Tuesday.

Data showed that the BOP position resulted in a lower deficit of $439 million in May, compared to the $1.6-shortfall a year ago. The latest figure reflected outflows arising mainly from the national government’s net foreign currency withdrawals from its deposits with the BSP to settle foreign currency

In Brief

ST Telemedia to expand data center capacity in PH

ST TELEMEDIA Global Data Centres (Philippines), a joint venture between Globe, Ayala Corp. and Singapore-based ST Telemedia Global Data Centres said Tuesday it is set to increase its capacity by 5.2 megawatts by the third quarter amid high market demand and continuing digital transformation of the country.

The aggressive expansion across STT GDC Philippines’ three existing data centers in Makati, Cavite and Quezon City will exceed the capacity of most single data centers locally and is designed to serve nearterm capacity needs.

“The ever-growing demand for digital services has underscored the necessity for the private sector to actively contribute to the nation’s digital transformation,” said STT GDC Philippines president and chief executive Carlo Malana.

“As part of STT GDC Philippines’ growth strategy to support the country’s digital infrastructure build, this capacity expansion is part of the commitment made to support the government’s endeavors in delivering reliable and robust digital infrastructure to our fellow Filipinos,” he said.

Darwin G. Amojelar

ERC vows to act on NGCP’s

applications for ASPAs

THE Energy Regulatory Commission on Tuesday committed to facilitating the approval of National Grid Corp. of the Philippines’ ancillary services procurement agreements to ensure that consumers continue to have access to reliable electricity.

It said that as of June 19, it was processing for approval the majority of the 36 ASPAs entered into by the NGCP pursuant to the competitive selection process mandated by the Department of Energy.

The NGCP issued notices of award for 36 ASPAs on April 18, and of this number, 14 applications were filed with ERC and were scheduled for hearing.

The remaining 16 applications were awaiting payment by NGCP of filing fees before they could be considered as formally filed. The ERC said it is also completing the pre-filing review of the remaining six ASPA applications. Alena Mae S. Flores

Shakey’s Pizza expects

20% income growth in 2023

RESTAURANT chain operator Shakey’s Pizza Asia Ventures Inc. said Tuesday it expects net income and sales to grow by more than 20 percent this year despite continued challenges caused by rising cost of raw materials.

Shakey’s chairman Christopher Po said in a media briefing following the annual stockholders meeting said the company is bullish on domestic operations as all brands have the capability to expand and grow by double-digits.

“We foresee better than 20-percent growth for topline and bottomline for 2023. Even with the potential economic headwinds, we will weather all these transitory challenges,” Po said.

Po said minus the impact of the latest acquisition, Potato Corner, the Shakey’s and Peri-Peri brands are also registering better sales and profits in 2023 compared to a year ago levels.

“Overall, we are bullish on the Philippine economy. The Philippines is one of the few countries that pre pandemic had 20 years of 5 percent or better GDP growth. Now that the pandemic is behind, we have every reasons to believe that this 5 percent or better GDP growth will be trend for the coming foreseeable future, led by the consume sector,” Po said. Jenniffer B. Austria debt obligations and pay for various expenditures.

“Based on preliminary data, this cumulative BOP surplus was partly attributed to net inflows from personal remittances, net foreign borrowings by the national government, trade in services and foreign direct investments,” the BSP said.

BOP refers to the difference in total value between payments into and out of a country over a period.

Meanwhile, the gross international reserves decreased to $100.6 billion as of end-May from $101.8 billion as of endApril. The latest GIR level represented a more than adequate external liquidity buffer equivalent to 7.4 months’ worth of imports of goods and payments of services and primary income.

It was also about 5.8 times the country’s short-term external debt based on original maturity and 4.1 times based on residual maturity.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the $439-million BOP deficit in May was the widest since February 2023.

Ricafort said that in the coming months, the BOP data “could still improve with the continued increase in the country’s structural inflows—such as OFW remittances, BPO and exports revenues and tourism receipts.”

The BSP reduced last week its BOP forecast for 2023 to a deficit of $1.2 billion from a previous estimate of $1.6-billion shortfall on the back of the narrowing trade deficit.

“For 2023, the overall BOP position is seen to register a lower deficit relative to the March 2023 projection exercise. This development is underpinned largely by a narrower merchandise trade gap, as goods imports growth is expected to slow down sharply following the