business – Page 17 – Author Carlo Carrasco

Mitsubishi will invest P7 billion in the Philippines

February 13, 2025February 7, 2025carlocarrasco

Japanese motor giant Mitsubishi Motors Corp. (MMC) formally announced recently that it will be investing P7 billion in the Philippines which President Ferdinand “Bongbong” Marcos, Jr., welcomed, according to a Manila Bulletin news report.

To put things in perspective, posted below is an excerpt from the news report of the Manila Bulletin. Some parts in boldface…

President Marcos welcomed Mitsubishi Motors Corp.’s (MMC) P7-billion investment plan in the Philippines in the next five years, saying this will create more jobs for Filipinos.

Marcos expressed his appreciation to MMC during Mitsubishi President and CEO Kato Takao’s courtesy call to the President in Malacañan on Thursday, Feb. 6, to discuss the company’s investment plan in the Philippines.

During their meeting, Kato said MMC’s expansion plan includes adding a new production model at its Mitsubishi Motors Philippines Corp. (MMPC) plant in Laguna. Marcos welcomed this move as it would generate more jobs for Filipinos.

“The jobs that it will provide, that your investment will provide, are very important to us and certainly, vehicle manufacture is one of those,” President Marcos said.

In a Facebook post, the President described Mitsubishi as a valuable partner in his administration’s quest to boost the automotive industry.

“As a strong partner in our journey to strengthen the automotive industry and empower Filipino workers, we welcome Mitsbushi Motors Corporation’s plans to expand operations in the country,” he wrote.

“Mr. Takao Kato and I share the same goals of driving innovation, creating more jobs, and making sustainable transportation a reality for Filipinos,” he added.

During the meeting, Marcos said that MMC will be included in the government’s Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) Program, a new proposed version of the Comprehensive Automotive Resurgence Strategy (CARS) Program. He hoped MMC’s inclusion would help in its expansion plans.

For his part, Kato said the Philippines is MMC’s most important investment in Southeast Asia, citing its good and stable economy.

“In the ASEAN, (the) Philippines is our number one market,” Kato told the President.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think Mitsubishi’s ambitious investment plan will add a lot to the ongoing economic growth of the country?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

I Love Israel: Israel-DAR strategic partnership on agricultural development discussed

February 6, 2025January 28, 2025carlocarrasco

As some of you are already aware, I fully stand with Israel which is very connected with my uncompromising faith in the Lord. I keep on praying to Him for Israel to overwhelm its enemies, rescue the hostages and recover from the effects of the October 7, 2023 terrorist attacks committed by the Palestinian terrorist group Hamas which is sponsored by terrorist state Iran. I can assure all of you that nobody from the evil Islamo-Leftist mob, nobody from the pro-Palestine radicals, nobody from the political correctness extremists, and nobody from evil societies would stop me from supporting and loving Israel.

Now, on with the news…

A few weeks ago, Israel and the Department of Agrarian Reform (DAR) started a strategic partnership that will benefit the Philippines by means of agricultural development, according to a news article by the Philippine News Agency (PNA).

For the newcomers reading this, the Jewish state is one of the world’s leaders in agriculture and the Philippines can really use Israeli expertise to make tremendous improvements.

To put things in perspective, posted below is the excerpt from the PNA news article.. Some parts in boldface…

The Department of Agrarian Reform (DAR) has entered into a strategic partnership with Israel to advance agricultural development and innovation in the Philippines.

In a news release on Thursday, DAR said Secretary Conrado Estrella III and Israel Ambassador Ilan Fluss have discussed the possibility of a strong collaboration on cutting-edge farming technologies, rural development, and sustainable agricultural practices.

During their meeting, Estrella recognized the longstanding relationship between the Philippines and Israel and highlighted the successful implementation of the Philippines’ agrarian reform program under the leadership of President Ferdinand R. Marcos Jr.

He also noted the positive impact of DAR programs on the lives of agrarian reform beneficiaries while emphasizing the need for further growth in rural areas.

Fluss, meanwhile, acknowledged the ongoing challenges faced by Israel due to the ongoing war in the Middle East and shared the resilience of their agricultural sector. He also noted the importance of international partnerships from allies such as the United States in securing food and medical aid for its citizens.

Meanwhile, a key focus of the meeting between Estella and Fluss was the adoption of Israeli agricultural technologies, particularly in irrigation methods and Precision Agriculture (PA).

Israel’s expertise in water-efficient irrigation systems, particularly suited for arid regions, was identified as a critical solution for Filipino farmers facing water crisis concerns.

Both officials expressed enthusiasm about the potential of PA, which uses data and technology to optimize crop yields, water use, and resource management, while Fluss affirmed Israel’s willingness to share expertise in this area.

As part of knowledge exchange initiatives, Fluss also invited DAR officials to visit Israel for training by experts on farming, rural development, and climate change adaptation.

This newest development shows the continuing growth of Israel-Philippines ties through agriculture as well as the opportunities for Filipinos to innovate on agriculture, improve farming methods and ensuring food security for the entire nation. Watch and learn from the videos below…

To my fellow Filipinos reading this, I encourage you to accept the truth that Israel is the land God designated specifically for the Jewish people (read Genesis 35:10-12) and His command must be followed without hesitation. If you want to be blessed further by the Lord, do so by loving and blessing the Jewish people (Genesis 12:1-3). I did my part when I was in Israel. Also, let me remind you all that the ties between the Jews and Christians are truly biblical!

I encourage you all to pray to the Lord God in support of Israel, to love and bless the Jewish people, and pray for the peace of Jerusalem. Pray to Him so that Israel-Philippines ties and cooperation will keep growing stronger in the many years ahead.

If you truly believe in Lord Jesus, the Holy Spirit and God the Heavenly Father wholeheartedly and you continue to be faithful, you should be aware that Christians are meant to stand united with Israel and love the Jewish people no matter what. You can do your part supporting Israel by donating to Christians United for Israel (CUFI). Do not forget to read the Holy Bible, then pray in tongues to the Lord in the privacy of your room with the door shut.

Always be the fearless and aggressive church of Lord Jesus! Always stand in support of Israel and its ties with the Philippines!

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Ownership of Festival Mall transferring to Filinvest REIT Corporation (FILRT) for over P6 billion

February 4, 2025January 27, 2025carlocarrasco

Have you been to Festival Mall in Alabang lately? Some things might change in the near future as the ownership of the shopping and lifestyle mall (first opened in May 1998 as Festival Supermall) is being transferred by the Gotianun Group to Filinvest REIT Corporation (FILRT) in a deal worth more than P6 billion, according to a Manila Bulletin business news report.

To put things in perspective, posted below is the excerpt from the Manila Bulletin business report. Some parts in boldface…

The Gotianun Group is transferring ownership of its flagship Festival Mall-Main Mall in Filinvest City, Alabang, Muntinlupa City to Filinvest REIT Corporation (FILRT) in a P6.26 billion deal that marks the real estate investment trust’s entry into the retail leasing business.

In a disclosure to the Philippine Stock Exchange, Filinvest Land Inc. (FLI) said it is selling the 26-year-old Festival Mall to FILRT in exchange for 1.63 billion FILRT shares at an issue price of P3.85 per share under a tax-free property-for-share swap transaction.

“The transaction fulfills FLI’s commitment as the sponsor of FILRT to continually support the growth and expansion of its REIT portfolio through the infusion of high-quality income-generating real estate assets,” FLI said.

It added that, upon the Securities and Exchange Commission’s (SEC) approval of the transaction, FLI and FILRT shall execute a lease agreement for the building.

In a separate disclosure, FILRT said the issue price represents a 30 percent premium over the 30-day volume weighted average price of P2.94 per FILRT share, and falls within the fair value price range provided by FTI Consulting’s Fairness Opinion and LeeChiu Property Consultants, Inc.’s Valuation Report.

The property was appraised by Leechiu Property Consultants, and a fairness opinion was provided by FTI Consulting. A discounted cash flow (DCF) approach was used as the primary method to determine the value of the property.

Under the DCF approach, the future cash flows of the property were discounted using a weighted average cost of capital (WACC) based on a capital asset pricing model. A direct capitalization approach was also used as a secondary reference for the valuation of the property.

For the valuation of the shares, FTI Consulting used various methodologies such as the DCF approach, a dividend discount model, and a comparable public companies’ method, to arrive at a range of values for the fair value of FILRT shares.

The primary common shares to be issued by FILRT to FLI will come from the unissued common shares of FILRT. This will be subject to the approval by FILRT’s shareholders and regulatory approvals.

Upon the SEC’s approval of the transaction, FLI and FILRT shall execute a lease agreement for the property.

“Pursuant to the approval of the transaction, the Board approved the conduct of a special stockholders’ meeting (SSM) to be held on March 4, at 10:00 AM. The record date for the determination of stockholders entitled to notice and right to vote at the SSM is February 10, 2025,” the firm said.

FILRT’s diversification into mall leasing comes after its expansion into the hospitality space with the acquisition of 2.9 hectares of land owned by Filinvest Development Corporation (FDC) in Boracay Island for P1.05 billion in cash.

The land is being leased by Boracay Seascapes, Inc. (BSI), the building owner of Crimson Resort & Spa Boracay and a subsidiary of FDC.

FILRT President and CEO Maricel Brion-Lirio said this is the company’s first asset infusion since its initial public offering and “not only increases the distributable income to our shareholders in the immediate term but also supports our goal of delivering stable dividends and increasing the potential for capital appreciation in the longer term.”

Let me end this post by asking you readers: What is your reaction to this recent development? If you are a resident of Muntinlupa City who happens to be a frequent visitor or shopper of Festival Mall, do you think the incoming, new owners will be able to make improvements on the mall somehow? Do you hope that the original cinemas of Festival Mall will get renovated and reopened with the latest cinema technologies in the future?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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For more South Metro Manila community news and developments, come back here soon. Also say NO to fake news, NO to irresponsible journalism, NO to misinformation, NO to plagiarists, NO to reckless publishers and NO to sinister propaganda when it comes to news and developments. For South Metro Manila community developments, member engagements, commerce and other relevant updates, join the growing South Metro Manila Facebook group at https://www.facebook.com/groups/342183059992673

IMF sees stronger economic growth for the Philippines in 2026 but warns about risks related to external developments

January 28, 2025January 25, 2025carlocarrasco

Recently the International Monetary Fund (IMF) stated that it expects the economic growth of the Philippines to get stronger in 2026 but it issue a warning that external developments could prevent it from happening, according to a BusinessWorld news report.

To put things in perspective, posted below is an excerpt from the news report of BusinessWorld Some parts in boldface…

THE PHILIPPINE ECONOMY will continue to accelerate from this year to 2026 as domestic demand remains robust, the International Monetary Fund (IMF) said, but warned risks are tilted to the downside due to possible external shocks.

At the same time, Finance Secretary Ralph G. Recto said that the Philippines likely failed to hit its 6-6.5% growth goal for 2024, amid typhoons.

“If it hits 6% in the fourth quarter, I’ll be happy with that. I don’t think it will hit 6% for 2024, but I think it will surpass 6% in 2025,” Mr. Recto told reporters on Jan. 16.

For the first nine months of 2024, Philippine growth averaged 5.8%, the same as the IMF’s projection for the full year. Preliminary fourth-quarter and full-year gross domestic product (GDP) data will be released on Jan. 30.

In its latest World Economic Outlook update, the IMF kept its GDP forecasts for the Philippines at 6.1% this year and 6.3% for 2026, the same as its projections in October.

These would fall within the government’s 6-8% GDP target for 2025 and 2026.

“Growth for 2025-2026 is projected to be primarily driven by domestic demand, namely consumption and investment,” an IMF spokesperson said in an e-mail.

“Consumption growth will be supported by lower food prices and gradual monetary policy easing,” it added.

Latest data from the Philippine Statistics Authority showed household consumption, which accounts for over three-fourths of the economy, jumped by 5.1% in the third quarter from 4.7% a quarter ago.

“Investment growth is expected to pick up on the back of a sustained public investment push, gradually declining borrowing costs and acceleration in the implementation of public-private partnership projects and foreign direct investments (FDI), following recent legislative reforms,” the IMF said.

Gross capital formation, the investment component of the economy, expanded by 13.1% in the third quarter, a turnaround from the 0.3% dip a year ago.

However, the IMF said that the balance of risks to the growth outlook is tilted to the downside, citing external risks.

“Some of the main downside risks include recurrent commodity price volatility, and new supply shocks, which may necessitate tighter monetary policy to anchor inflation expectations,” it said.

The IMF also cited shocks such as geopolitical tensions which could disrupt trade and other financial flows.

“Higher for longer policy rates in advanced economies (could cause) capital outflows, and tighter financial conditions,” it added.

The multilateral institution also cited climate shocks and extreme weather events which would lead to economic losses.

“There are also upside risks to the outlook, including from higher-than-expected growth in private investment through public-private partnerships, higher inward FDI following a faster-than-expected global recovery, or stronger reform momentum,” it added.

INFLATION – Meanwhile, the IMF said it expects inflation to remain within the central bank’s 2-4% target range in the near to medium term. It projects headline inflation to average 2.8% this year and 3% in 2026.

“However, risks are tilted to the upside, as rising geopolitical tensions, extreme climate events, and recurrent commodity price volatility continue to pose upside risks to inflation,” it said.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the IMF is correct with its current analysis of the details and economic forecast for the Philippines? Do you think the national government should focus more on attracting new foreign investors and bringing inflation down to build up the economic momentum?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Citigroup sees Philippine economy expanding by about 6% this year

January 28, 2025January 21, 2025carlocarrasco

In the perspective of Citigroup, Inc. (Citi), the economy of the Philippines will grow this year by around 6%, pointing to the growth of the business process outsourcing (BPO), according to a BusinessWorld news report.

To put things in perspective, posted below is an excerpt from the news report of BusinessWorld Some parts in boldface…

CITIGROUP, INC. (Citi) expects the Philippine economy to expand by around 6% this year, partly driven by sustained growth in the business process outsourcing (BPO) sector.

“We expect the growth in 2025 to stay within the 6% handle,” Citi Asia South Head Amol Gupte said in an online briefing on Monday.

Citi’s forecast would be at the low end of the government’s 6-8% target for the year.

“The Philippines will continue to benefit from [the BPO industry] and will create a lot of jobs. On moving up the value chain on global capability centers, countries like the Philippines will play a very large role along with India,” Mr. Gupte said.

The information technology and business process management (IT-BPM) industry ended 2024 with $38 billion in export revenue, and 1.82 million full-time employees.

Under the Philippine IT-BPM Industry Roadmap, the target is to grow into a $59-billion industry and increase the full-time employee count to 2.5 million by 2028.

“So, I think it’s really important that the Philippines, as it thinks about the BPO industry, moves up the value chain so that it retains and bring more middle-office kinds of jobs beyond the voice jobs that exist in the tens of thousands,” Mr. Gupte said.

However, the rise of artificial intelligence (AI) could be a risk to the IT-BPM sector in the Philippines.

“There’s also the risk to that in terms of what AI will do to that industry and whether that will reduce jobs,” Mr. Gupte said.

Meanwhile, Citi South Asia Corporate Banking Head K Balasubramanian said sustained economic growth ensures that Philippine banks are well-positioned to continue to generate profits.

“I think the financial profile of the Filipino banks continues to be very strong, and with 6% growth I think they are well capitalized to look at the opportunities ahead,” he said.

As of end-September 2023, the Philippine banking system’s net profit rose by 6.4% to P290 billion as both net interest and non-interest income grew.

“We just saw the upgraded Philippine sovereign rating that happened in the fourth quarter of last year. And if you look at the impact of that on the Republic of Philippines, as well as the state-owned banks of the Philippines, I think that’s going to be crucially positive because we are now up to BBB+,” Mr. Balasubramanian said.

“(This) means that the ability to access international financing is going to be better and even the cost of the access is going to be better than what it was in the past.”

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think Citgroup is correct about its research on the Philippine economy? Do you think the BPO industry will contribute a lot to the economic growth of the nation this year?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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President Marcos congratulates Trump, looks forward closely to working with him

January 24, 2025January 22, 2025carlocarrasco

Through social media, Philippine President Ferdinand “Bongbong” Marcos, Jr., congratulated US President Donald Trump (whose 2^nd term has started officially) and expressed that he is looking forward to working with him in relation to Philippines-America ties, according to a news article by the Philippine News Agency (PNA). It should be remembered that Marcos and Trump previously talked over the phone.

To put things in perspective, posted below is an excerpt from the news article of the PNA. Some parts in boldface…

President Ferdinand R. Marcos Jr. extended his congratulations to newly inaugurated United States (US) President Donald Trump following his return to office, emphasizing the strength of the Philippine-American alliance and its role in regional security.

“Congratulations to POTUS @realdonaldtrump and to the American people on another peaceful transfer of power in their Nation’s nearly 250-year history. I look forward to working closely with you and your Administration,” Marcos said in a statement posted on social media Tuesday.

Marcos underscored the enduring alliance between the Philippines and the US, stressing that it would continue to be a cornerstone for regional stability.

“The strong and lasting PH-US alliance will continue to uphold our shared vision of prosperity and security in the region,” he said.

The Philippines and the United States have long been allies, engaging in numerous joint military, economic, and diplomatic initiatives that now face ongoing regional challenges, including tensions in the South China Sea and broader Indo-Pacific security concerns.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think there will be breakthroughs with regards to the Philippines-America ties? Now that Rodrigo Duterte is no longer the President of the Philippines, do you think President Trump will be more motivated to have America collaborate more with Philippines economically and militarily? Do you think China will refrain from bullying Filipinos at sea once the Trump administration starts working closely with the Philippines?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Philippines attracts less than 6 million foreign tourists in 2024, points to tourism revenue for success

January 16, 2025January 7, 2025carlocarrasco

When it comes to the state of tourism in 2024, the Philippines achieved a mixed record by failing to reach its declared target of 7.7 million international visitors while still managing to achieve a new, all-time record with P760.5 billion in tourism revenue, according to a Philippine News Agency (PNA) news article.

To put things in perspective, posted below is an excerpt from the news article of the PNA. Some parts in boldface…

Philippine tourism earned an all-time high revenue of PHP760.5 billion in 2024, translating to a 126.75 percent recovery rate from the 2019 pre-pandemic levels.

Revenues from inbound tourism expenditures — representing the total amount spent by non-resident visitors — were 9.04 percent higher compared to the PHP697.46 billion in 2023.

Department of Tourism (DOT) data showed earnings surpassed the estimated PHP600.01 billion in 2019 by an impressive 26.75 percent.

“With these figures, it is clear that the Philippine tourism industry is not only bouncing back but also evolving and expanding, contributing significantly to the nation’s economic stability and growth. In the past year, we have witnessed remarkable growth in tourism revenue, which has surpassed previous records,” Tourism Secretary Christina Frasco said Monday.

“This achievement is not just a statistic. It translates to thousands of jobs created for Filipinos, fostering economic resilience and enabling families to thrive,” she added.

She attributed this growth to the pro-tourism policies of the Marcos administration that prioritized the sustainable development of Philippine tourism resources.

“These policies focus on enhancing infrastructure, promoting heritage conservation and investing in skills development programs for our workforce, among others. We believe that the growth of tourism should be inclusive and equitable, empowering local entrepreneurs and communities,” she said.

Based on the World Travel and Tourism Council data, international tourists spend at least USD2,073 per capita.

From an average of nine nights in 2019, tourists are now staying an average of over 11 nights in the country, while 70 percent are repeat visitors.

Continued collaboration with stakeholders from the private sector also garnered about 63.18 percent repeat visitors in 2023, the DOT said.

Tourist arrivals – While falling short of its original target of 7.7 million, the DOT said the country still recorded growth in the number of foreign visitors last year at 5,949,350, up by 9.15 percent from the 5.45 million foreign guests recorded in 2023.

South Korea maintained its position as the top source of foreign tourists, with arrivals increasing to 1,574,152 from 1,455,977 in 2023, garnering more than 26.46 percent of the total market share.

Frasco cited the country’s “effective strategic marketing initiatives, enhanced air connectivity and strengthened cultural exchanges” for the sustained number of Korean tourists to the Philippines.

“Furthermore, the Philippines’ growing reputation as a prime destination for incentive travel has played a key role in this positive trend, attracting an increasing number of Korean companies hosting their reward trips for their employees in the Philippines’ world-class tourist destinations,” she said.

The United States ranked second, with 1,076,663 visitors in 2024, increasing from 1,041,305 in 2023. Enhanced connectivity, including nonstop flights from San Francisco to Manila by United Airlines and from Seattle to Manila by Philippine Airlines contributed to the growth of the market.

Japan, meanwhile, emerged as a standout market with a 22.84 percent growth in arrivals, reaching 444,528 visitors from its previous year’s 361,862.

The surge was attributed to aggressive tourism campaigns and strategic partnerships with Japanese travel agencies that paved further awareness and interest in the Philippines as a travel destination.

Though significantly lower than the pre-pandemic figures, China showed signs of recovery with 313,856 arrivals compared to 264,922 in the previous year.

This can be attributed, the DOT said, to the increased number of flights from 2023, both commercial and chartered, including the first half of 2024, connecting China directly to Cebu, Bohol, and Davao.

Cruise ships also started to arrive during the second half of 2024, with the new visa waiver program becoming an important factor for the improved numbers.

Other consistent contributors included Australia (299,286) and Canada (269,300). Emerging markets like Taiwan and Singapore demonstrated strong growth momentum, with arrivals reaching 213,833 and 198,471, respectively.

The introduction of direct flights to Kalibo in Aklan and Puerto Princesa in Palawan, as well as the growth of niche markets such as English as Second Language (ESL) learning and diving, contributed greatly to the visits of guests from Taiwan.

The United Kingdom likewise sustained its position among the top contributors with 178,656 visitors, driven by a keen interest in heritage tourism and adventure activities. Meanwhile, Malaysia emerged 10th with 99,881 registered arrivals in 2024.

The DOT said the Middle Eastern market similarly showed promising signs of recovery in 2024.

The United Arab Emirates (UAE) posted a remarkable 668.34 percent recovery rate from its 2019 figures, reflecting increased air connectivity and a surge in interest in the Philippines as a leisure destination. Qatar followed closely, with an impressive 832.87 percent recovery rate, and Saudi Arabia with 66.54 percent growth.

Likewise, Oman and Bahrain registered more than 200 percent recovery rates from the 2019 number of arrivals, the DOT said.

Those in the top 25 source markets which have fully recovered as compared with 2019 data included Australia (102.63 percent), Canada (109.26 percent), Hong Kong (106.79 percent), UAE (668.34 percent), Italy (143.02 percent), Spain (111.08 percent), Guam (200.19 percent), New Zealand (100.50 percent) and Switzerland (102.01 percent).

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think it is safe to call 2024 a successful year of tourism for the Philippines with regards to the record-high tourism revenue achieved? Do you think the Philippines will be able to attract at least 6 million foreign tourists this year?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Maharlika Investment Corp. (MIC) to make first investment this quarter

January 15, 2025January 7, 2025carlocarrasco

The Maharlika Investment Corp. (MIC) – the entity responsible for making investments on behalf of the Philippines – will be making its first investment within the first quarter of 2025, according to a BusinessWorld news report. Take note that it has been over eighteen months since the Maharlika Investment Fund was formally signed into law. The IRR (implementing rules and regulations) has already been finalized.

To put things in perspective, posted below is an excerpt from the news report of BusinessWorld. Some parts in boldface…

THE MAHARLIKA Investment Corp. (MIC) is expected to make its first investment this quarter, most likely in the energy sector, its top official said.

“Definitely the first quarter. I think we had a year to set up. We had a year to basically put our governance in place. We obtained our formal approval to begin hiring last end of July,” MIC President and Chief Executive Officer Rafael D. Consing, Jr. said in an interview with BusinessWorld on Jan. 2.

The MIC has yet to make any investments since President Ferdinand R. Marcos, Jr. signed the law creating the country’s first wealth fund in July 2023. The Maharlika Investment Fund (MIF) had initially committed to make its first investments before the end of 2024.

Mr. Consing said sovereign wealth fund is “ready” and backed with funding and the needed workforce, but will not invest “without the benefit of due diligence.”

MIC earned P2.3 billion in interest income in 2024, Mr. Consing said.

Under the law, the Development Bank of the Philippines (DBP) and the Land Bank of the Philippines were mandated to contribute P25 billion and P50 billion, respectively, as the initial seed capital for the MIF. The two state lenders have remitted the funds to the Bureau of the Treasury in September 2023.

Mr. Consing said the MIC’s strategic plan will be up for board approval on Jan. 9. This after it made some changes after meeting with the Governance Commission for Government-Owned and -Controlled Corporations (GCG) before the holidays, he added.

The MIC is looking into investing in energy, food security, healthcare, and resource development, particularly mining.

“In the first quarter, that would be the energy sector. Healthcare, if it turns out okay, if our due diligence results turn out okay, first half. I would say early second quarter for the latter two,” Mr. Consing said.

Mr. Consing said he believes that investments in the energy sector, particularly transmission lines, would be “most impactful.”

“That’s why ideally, we’d like to be able to buy into the national grid, if we’re able to. Or number two, we have also separately signed MOUs (memoranda of understanding) with the likes of Mindoro and Palawan, which fall under the SPUGS [small power utilities group] category,” he said.

In 2024, the MIC signed an agreement with Occidental and Oriental Mindoro to support investments in critical energy infrastructure.

“There are about 34 SPUGS in the country. The two biggest are Mindoro and Palawan. And we believe that given the contribution of Palawan when it comes to tourism, and also the population that lives in there, and the potential contribution of Mindoro in respect to the entire electricity sector in the Philippines, we felt that these are two priority areas where we can help, in fact, build transmission lines,” he said.

However, Mr. Consing declined to comment on the MIC’s plan to invest in the National Grid Corp. of the Philippines (NGCP).

He said the National Power Corp. is currently doing an inventory of all its assets in Mindoro and MIC “will have to sit down and determine which part of those assets it would need as part of the expansion of these lines.”

“Where we are now is we’re procuring the services of the technical consultant and the team that will be putting together the whole feasibility study. Because all of these will require regulatory approval by the Energy Regulatory Commission,” he added.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think that the MIC will be able to make smart decisions with regards to making the investments? Do you think the Maharlika Investment Fund will make positive impact on the market and encourage others to invest?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Philippines inflation hit 2.9% in December 2024, 3.2% for the entire year

January 14, 2025January 16, 2025carlocarrasco

In recent times, the inflation rate of the Philippines increased by 2.9% during the month of December 2024 which contributed to a final inflation result of 3.2% for the entire year, according to a Philippine News Agency (PNA) news article.

To put things in perspective, posted below is an excerpt from the news article of the PNA. Some parts in boldface…

Inflation settled at 2.9 percent in December last year, bringing the 2024 average inflation rate to 3.2 percent, well within the government’s 2 percent to 4 percent target, the Philippine Statistics Authority (PSA) said.

In a briefing on Tuesday, National Statistician Dennis Mapa attributed the downtrend in the annual average inflation to the lower increase in the index of food and non-alcoholic beverages at 4.4 percent in 2024 from 7.9 percent in 2023. Food inflation, in particular, decelerated from 8 percent in 2023 to 4.5 percent last year.

According to Mapa, rice inflation also slowed to 0.8 percent, the lowest since January 2022.

“Iyong inflation rate sa bigas ay bumababa na. In fact, baka mayroon tayong expectation na maging negative na ‘yong inflation sa rice sa January (The rice inflation rate is going down. In fact, we expect negative rice inflation in January). That’s part of the good news,” he said.

The lower annual average inflation of housing, water, electricity, gas, and other fuels at 1.7 percent in 2024 from 4.9 percent in 2023, also contributed to the downtrend in 2024’s overall inflation.

Except for education services, the indices of other commodity groups recorded a downtrend in their annual average inflation in 2024 compared with 2023, with financial services recording an average decline of 0.6 percent in 2024 from a zero percent average inflation in 2023.

“The 3.2 percent average inflation rate in 2024 is a significant improvement from the 6 percent figure in 2023. Despite the risks we encountered throughout the year, our combined efforts to temper inflation have largely been successful. We will build upon this momentum as we commit to keep the inflation rate within our target range in 2025,” National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said in a separate statement.

“In pursuit of price stability, the Bangko Sentral ng Pilipinas maintains a calibrated approach to its monetary policy easing while the relevant agencies continue to pursue measures to ensure adequate food supply and affordable prices.“

NEDA noted that the government would continue to ramp up efforts to ensure water and food security amid climate risks.

Let me end this post by asking you readers: What is your reaction to this recent development? If you are managing a business, did inflation have any severe impact on the finances of your business? Do you think inflation all over the Philippines will somewhat ease this year?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Several thousands of foreign POGO workers still in the country, DOJ issues warning

January 13, 2025January 5, 2025carlocarrasco

While many Philippine Offshore Gaming Operators (POGOs) have already banned, there are still more than eleven thousand foreign employees of such businesses remaining in the country and the Department of Justice (DOJ) warned them to submit to authorities, according to a GMA Network news report.

To put things in perspective, posted below is an excerpt from the news report of GMA. Some parts in boldface…

The Department of Justice on Sunday warned foreign Philippine Offshore Gaming Operators (POGO) workers to surrender to authorities or face legal consequences that include permanent blacklisting.

“The President is unequivocally clear that POGOs have no place here in the Philippines and we vow to give our all-out support for the sake and welfare of the Filipino people,” Justice Secretary Jesus Crispin Remulla said in a statement.

“This Administration stands firm in its resolve to intensifying its guerilla operations against non-compliant POGOs,” he added.

In July 2024, President Ferdinand Marcos Jr. banned all POGOs after several businesses were implicated in a variety (of) crimes, including human trafficking, serious illegal detention, and money scams.

According to the Bureau of Immigration, 22,609 of the 33,863 foreign POGO workers have already left the Philippines. This means around 11,000 foreign POGO workers are still in the country.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think that the authorities will be able to find the 11,000+ foreign POGO workers who are remaining in the country? Do you think that local candidates running for positions in the 2025 National and Local Elections could secretly have been funded by POGOs?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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