BusinessMirror October 20, 2023

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Economic team revising Maharlika fund IRR By Jasper Emmanuel Y. Arcalas, @jearcalas

Jovee Marie N. dela Cruz, @joveemarie

& Samuel P. Medenilla

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@sam_medenilla

HE economic team will revise the implementing rules and regulations (IRR) of the Maharlika Investment Fund (MIF) in line with the “wisdom” of President Marcos Jr. of making the country’s first sovereign wealth fund “close to perfect.” “We subscribe to the wisdom of [President Marcos Jr.] in suspending the IRR as this is not just an economic strategy for us but a historic first sovereign investment

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fund,” Budget Secretary Amenah F. Pangandaman said on Thursday. “The economic team will work closely with the President to prudently review all provisions line by line and make sure that all things are in order,” Pangandaman added. The budget chief said the economic team will also “engage” in "more multistakeholder groundwork" as part of the state's preparation for the launch and operationalization of the MIF. On Thursday morning, Marcos explained to reporters that the reason behind the indefinite suspension of MIF's IRR was the need to improve the organizational structure of the Maharlika Investment Corp.

“The concept of the Maharlika fund, sovereign fund, or investment fund, concept remains a good one. And we are still committed to having it operational by the end of the year,” Marcos said in his speech before flying to Saudi Arabia. “So we should not misinterpret what we have done as somehow a judgement on the rightness or wrongness of the Maharlika fund. On the contrary, we are just finding ways to make it as close to perfect or ideal as possible, and that is what we have done,” Marcos added. In a separate broadcast interview on the same day, Albay Rep. Joey Sarte Salceda claimed that one issue that Marcos saw with the MIF’s IRR was the stringent

selection process. Salceda pointed out that the IRR does not leave any room for alternative options for the President in appointing the MIC officials, particularly its President and CEO. He explained that Marcos can only appoint officials who were shortlisted and recommended to his office by the Advisory Body under the current IRR. However, Salceda, who chairs the House Committee on Ways and Means, revealed that Marcos's preferred pick to lead the MIC was not part of the shortlist submitted to him since the person did not apply in the first place. See “Economic,” A2

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IS WIDEST SINCE JUNE By Cai U. Ordinario @caiordinario

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HE country’s balance of payments (BOP) posted its widest deficit since June, according to data released by the Bangko Sentral ng Pilipinas (BSP).

The BOP deficit reached $414 million in September, the highest since June, when the deficit reached $606 million. The September data was 626.32 percent higher than the $57 million posted in August 2023. However, this was 82 percent lower than the $2.3 billion in September 2022. "The BOP deficit in September 2023 reflected net outflows arising mainly from the National Government’s (NG) payments of its foreign currency debt obligations," BSP explained. With the deficit in September, the BSP said, the cumulative BOP position registered a surplus of $1.7 billion in the first three quarters of the year. The BSP said this was a reversal from the $7.8-billion deficit recorded in the same period a year ago. “Based on preliminary data, this development reflected mainly the improvement in the balance of trade and the higher net inflows from personal remittances, trade in services, and foreign borrowings by the NG,” the BSP said. In August 2023, data from the Philippine Statistics Authority (PSA) showed that exports grew 4.2 percent while imports contracted 13.1 percent. The country’s balance of trade narrowed to $4.13 billion in 2023, a 31.5- percent decline compared to the deficit of $6.03 billion in August 2022.

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DA cool to groups’ call to reimpose rice price cap By Jasper Emmanuel Y. Arcalas

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@jearcalas

N alliance of agriculture groups has urged government to reimpose a price ceiling on rice next month, but the Department of Agriculture (DA) is lukewarm to the proposal, arguing that there are other options to ensure that domestic staple prices remain stable and affordable. “I do not think [we have to reimpose the price cap]. The price cap should really be a short term. I don't think we will resort to that, we will have to study [that],” Agriculture Undersecretary for Policy, Planning and Regulations Mercedita A. Sombilla told reporters in an interview on Thursday. “There are probably other measures that we can already do,” Sombilla added. Sombilla pointed out that the imposition of the price cap in September was an emergency measure See “DA,” A2

‘HIGH FOOD PRICES COULD WORSEN MALNUTRITION’

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OUR months into the rapid increase in commodity prices, an economist from the De La Salle University (DLSU) expressed concern that high food prices could lead to greater malnutrition nationwide. In a statement released by the Philippine Institute for Development Studies (PIDS), De La Salle University Professor Marites Tiongco said inflation rates for vegetables and rice were relatively high in the last four months. Tiongco noted that monthon-month inflation for vegetables declined from 11.2 percent

in August to 2.5 percent in September, but it rose from 4.9 to 8.4 percent for rice. “Tiongco alerted that the rising food prices, if not abated, will lead to malnutrition and other health issues. This can exacerbate the already serious problem of malnutrition in the country,” PIDS said. Tiongco recommended addressing high food prices by looking at all angles of the problem, including the production, market, legislative, and institutional constraints. She also recommended beefing up “nutrition surveillance and early warning systems to

monitor and treat severe and acute malnutrition.” For nutrition surveillance and food transfers, she emphasized that the priority should be pregnant women, infants and children, given the critical importance of the first 1,000 days of life for children’s healthy growth and development. Malnutrition in the country, including stunting, is high but government resources have not been sufficient in addressing it. In a research paper, PIDS supervising research specialist Jhanna Uy; health financing See “High,” A2

See “Sept,” A2

PESO exchange rates n US 56.7380 n japan 0.3788 n UK 68.9026 n HK 7.2473 n CHINA 7.7563 n singapore 41.3331 n australia 35.9435 n EU 59.7962 n KOREA 0.0419 n SAUDI arabia 15.1265 Source: BSP (October 19, 2023)


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BusinessMirror October 20, 2023 by BusinessMirror - Issuu