June factory output slows on prod’n cuts on 3 items

By Cai U. Ordinario @caiordinario

rate of 7.8 percent.

The data showed that slower annual VaPI growth in June 2023 was mainly contributed by the annual drop in manufacture of food products industry division at a contraction of 0.4 percent in June 2023 from 10.8 percent annual increase in the previous month.

“The manufacture of food products contributed 36.8 percent to the downtrend of VaPI for the manufacturing section in June 2023,” the PSA said.

Meanwhile, the net international reserves, which refers to the difference between the BSP’s reserve assets and reserve liabilities, increased by $0.3 billion to

$99.7 billion as of end-July 2023 from the end-June 2023 level of $99.4 billion.

BSP’s reserve assets is represented by the GIR while reserve liabilities are short-term foreign debt and credit and loans from the International Monetary Fund (IMF).

Data showed the Volume of Production Index (VoPI) posted a 3.4-percent growth in June 2023. This was slower than the 7.7 percent in May 2023 but was an improvement compared to the contraction of 0.04 percent in June 2022.

Based on the data, the manufacture of food products contracted 3.2 percent; fabricated metals, 36.4 percent; and beverages, 7.7 percent in June 2023.

“The slower annual growth of the VoPI in June 2023 was mainly brought about by the annual declines in the same top three industry divisions that contributed to the slower growth of VaPI during the period,” the PSA said.

The Value of Production Index (VaPI) for manufacturing continued to increase by 3.9 percent annually in June 2023.

This was slower than its annual growth of 9.9 percent in the previous month. In June 2022, the VaPI recorded an annual growth

“Out of the 22 industry divisions for the manufacturing section, manufacture of food products was the industry division with the highest weight in the computation of VaPI,” it added.

With the slowdown in the VoPI, the manufacturing sector’s average capacity utilization rate also slowed to 73.2 percent in June 2023 from 73.4 percent in May 2022.

The average capacity utilization rate of the food manufacturing industry slowed to 71.9, the lowest since December 2022 when the rate was at 71.3.

Meanwhile, all industry divisions reported capacity utiliza - tion rates of more than 50 percent during the month.

The top three industry divisions in terms of reported capacity utilization rate were manufacture of machinery and equipment except electrical (81.5 percent), manufacture of transport equipment (80.8 percent), and manufacture of rubber and plastic products (80.2 percent).

“The proportion of establishments that operated at full capacity [90 percent to 100 percent] was 26.5 percent of the total number of responding establishments,” PSA said.

“Meanwhile, 36.7 percent operated at 70 to 89 percent capacity, and 36.8 percent operated below 70-percent capacity,” it added.

The data is based on the Monthly Integrated Survey of Selected Industries report or the Production Index and Net Sales Index report.

The index monitors the production, net sales, inventories, and capacity utilization of selected manufacturing establishments to provide flash indicators on the performance of the manufacturing sector.

DOF. . .

Furthermore, the DOF said the principal amortization does not result in additional debt since it is “already an existing obligation.”

(BoT-G) is the difference between the value of exports and imports. The BoT-G in June 2023 amounted to $3.92 billion, indicating a trade deficit with an annual decrease of 33.3 percent.

In May 2023, the trade deficit recorded a contraction of 20.1 percent and in June 2022, it posted an annual increase of 76.6 percent.

The country’s top exports were electronic products, with total earnings of $3.94 billion or 58.8 percent of the country’s total exports during the period.

This was followed by other manufactured goods with an export value of $350.27 million or a 5.2-percent share of total exports; and other mineral products, which amounted to $300.81 million or 4.5 percent of the total.

The country’s top export market was the United States with $1.12 billion or a share of 16.7 percent of the country’s total exports in June 2023.

Other top markets were the People’s Republic of China which accounted for $999.19 million or

Estate tax. . .

“The settlement of debt obligations incurred from expenses were already recorded in the past. Therefore, principal amortization only represents the fulfillment of financial responsibilities arising from previously recorded expenses,” he said.

“If any, the responsibility for the debt is just moved from the previous lender to a new lender during the refinancing process. As a result, this does not add to the debt burden,” Secretary Diokno added.

Diokno explained that principal payments are “merely” settlements of liabilities incurred in the utilization of appropriations programmed in prior years.

The national government is set to borrow P2.46 trillion next year with a borrowing mix of 75:25 in favor of domestic sources.

The Philippines’s outstanding debt at the end of 2024 is projected to reach P15.841 trillion as the Marcos Jr. administration is set to borrow more money to bankroll the national government’s recordhigh P5.768-trillion budget for next year. (Related story: https:// businessmirror.com.

ph/2023/08/03/phl-outstandingdebt-seen-rising-to-p15-84trillion/)

The DOF remains optimistic that the improvements on the national government’s tax administration and implementation of key tax reforms would boost the state’s revenue collections and cut the country’s budget deficit.

14.9 percent of total export earnings; Hong Kong, $957.88 million or 14.3 percent; Japan, $945.52 million or 14.1 percent; and Republic of Korea, $335.08 million or 5 percent of the total.

Meanwhile, in terms of imports, the commodity that accounted for the largest amount of import receipts was electronic products, which amounted to $2.11 billion or a share of 19.9 percent to the country’s total imports.

This was followed by mineral fuels, lubricants and related materials at $1.53 billion with a share of 14.4 percent of the total; and transport equipment at $1.23 billion or 11.6 percent.

In terms of sources, the People’s Republic of China was the country’s biggest supplier of imported goods valued at $2.38 billion or 22.4 percent of the country’s total imports in June 2023.

Other major import trading partners for June were Indonesia which cornered $1.04 billion or 9.8 percent of import receipts; Japan, $841.75 million or 7.9 percent; Singapore, $762.33 million or 7.2 percent; and USA, $696.28 million or 6.6 percent. Cai U. Ordinario amnesty period to June 2025 and the period of deaths up until May 2022. The current estate tax amnesty expired last June 14.

The law also provides for the electronic filing of estate tax amnesty applications and limits the number of documents required for filing. It also shortened the period for issuing the implementing rules and regulations from 60 days to 30 days.

Salceda noted that RA 11956 “has many improvements compared to the previous Estate Tax Amnesty, especially as it makes the administrative requirements for filing much easier to comply with.”

According to the lawmaker, the amnesty is also consistent with the full estate-tax forgiveness envisioned under the New Agrarian Emancipation Act. Salceda also pointed out that RA 11953 is the first law enacted by the Committee on Ways and Means.

“And there is a pipeline of measures that the House has already approved that await Senate approval,” he added.

Salceda believes at least two more “pro-taxpayer laws”—the Ease of Paying Taxes Law and the Taxpayer Bill of Rights—would likely be enacted this year. These laws, he added, would “create the necessary balance between raising revenues for government programs and making the taxpayer experience less burdensome.”

Metro Pacific to list units in 2026 and 2027–MPIC chair Pangilinan

METRO Pacific Investments Corp. (MPIC) may have to list its units, including its water, tollways and hospitals group in 2026 and 2027 after its delisting from the Philippine Stock Exchange.

MPIC Chairman Manuel V. Pangilinan said during the company’s special stockholders’ meeting it may list its tollways business, under Metro Pacific Tollways Corp. by next year, at the earliest, and its water concession under Maynilad Water Services Inc., the West Zone concessionaire by 2026 or 2027.

“I don’t think there’s any intention to deviate from the course, that MPIC has taken in the past few years or so this will be subject to all the inputs of Mitsui and the Japan Overseas Investment Fund, which is owned by the Japanese government,” Pangilinan said.

“The tollways will also likely to have to be listed, not for legal reasons, but because of funding reasons. In fact, as early as perhaps next year.”

On Tuesday, MPIC shareholders voted to permit the voluntary delisting of MPIC shares from the Philippine Stock Exchange, subject to a successful tender process. Some 77.7 percent of all the shareholders approved the deal while 0.24 percent disapproved.

A delisting tender offer process will be launched on August 9, to acquire shares from minority shareholders at its best and final price of P5.20 per share.

The tender offer is expected to end on or about September 7.

Hong Kong-listed First Pacific Co. Ltd., through its affiliate Metro Pacific Holdings Inc., GT Capital Holdings Inc., a consortium including Japan’s Mitsui and Co. Ltd. and MIG Holdings Inc.—led by Pangilinan—seek to delist MPIC and make it a private company.

The price of P5.20 per share represents a premium of 37 percent over the oneyear volume weighted average price (VWAP) of P3.80 per share and a premium of 39 percent over the 3-year VWAP of P3.75 per share.

“We are pleased with the result from the MPIC shareholder meeting which allows the tender offer to begin, the ultimate objective of the vote today.

Since announcing our offer price, we have received favorable feedback from the market, with institutional investors and stock brokerages stating that it is fair and acceptable. Therefore, we look forward to a successful completion of the delisting transaction,” said Christopher H. Young, Executive Director of First Pacific. VG Cabuag

• Editor: Vittorio V. Vitug