BUSINESS NEWS ROUND UP FOR MAY 20 TO 24
BSP EYES RATE CUTS AHEAD OF US FEDERAL RESERVE
The Bangko Sentral ng Pilipinas (BSP) can start cutting key interest rates ahead of the US Federal Reserve (Fed) amid the current volatility of the Philippines peso against the US dollar.
BSP Governor Eli Remolona Jr. said on May 23 (Thursday) said that the decision of its Monetary Board to cut key interest rates will depend more on data such as inflation.
“We don’t care that much when the Fed cuts. We care more about our data,” he said.
“We follow the Fed very closely and what they decide is one data point for us, one among many others,” Remolona added.
The next meeting of the BSP-Monetary Board is this August.
STEEL ASIA SUSTAINS SHIPMENTS TO CANADA
SteelAsia Manufacturing Corp. has made six shipments to Canada worth about P300 million per shipment, for a total of P1.8 billion, in 2023.
SteelAsia Senior Vice President for Business Development Rafael Hidalgo said that the company has exported more than 35,000 tons of reinforcement bars, or rebars, to Canada for its subway system.
The company is planning to conduct an initial public offering (IPO) as part of its company’s strategic plans for the future.
SEC APPROVES SM PRIME’S P100-BILLION BOND OFFER
The Securities and Exchange Commission (SEC) on May 23 (Thursday) approved the shelf registration of the P100 billion bonds to be issued by SM Prime Holdings Inc.
The SEC Commission En Banc said it resolved to render effective the registration statement for the company’s peso-denominated bonds that can be offered in one or more tranches
SM Prime plans to offer up to P20 billion to the public in three-year Series V bonds, five-year Series W bonds, and seven-year Series X bonds, with an oversubscription option of up to P5 billion.
GOVT RECORDS P42.7-BILLION BUDGET SURPLUS IN APRIL
The government recorded a P42.7-billion budget surplus in April this year, according to the Bureau of the Treasury (BTr).
The BTr, in its latest cash operations report released on May 23 (Thursday), said the budget surplus during the month was lower than the P66.8 billion recorded in the same month last year, which was attributed to the faster increase in government spending that outpaced the growth in revenue collections.
Total revenues during the month amounted to P537.2 billion, up by almost 22% than the P440.7-billion collection in April last year.
“The positive outturn for the month was propelled by higher year-over-year (YoY) growth in both tax and non-tax revenues. The increase in tax revenues was fueled by double-digit growth in the collections of revenue collecting agencies while the increase in non-tax revenues was due to strong dividend remittance,” the BTr said.
EO 12 SEEN ENHANCING EASE OF DOING BUSINESS
Executive Order (EO 12) will further enhance the ease of doing business, promote more sustainable investments, and generate more jobs in the area of green technology, Finance Secretary Ralph Recto said.
EO 12 expands the electric vehicle incentive program.
“It will spur the creation of high-quality jobs, foster innovation, and offer Filipinos more eco-friendly vehicle choices. Ultimately, it will bring us closer to reaching our goal of reducing greenhouse gas emissions by 75% in 2030,” Recto said in a statement on May 22 (Wednesday).
IMPLEMENTING RULES FOR TATAK PINOY ACT SIGNED
Trade and Industry Secretary Alfredo Pascual led the signing of the Implementing Rules and Regulations (IRRs) of the Tatak Pinoy (Proudly Filipino) Act or Republic Act 11981 on May 22 (Wednesday).
The Tatak Pinoy Law aims to expand Philippine-made products and services, promoting quality and competitiveness in the global market.
Pascual said the Tatak Pinoy is a significant step in growing, diversifying, and sophisticating Filipino products and services, as this law addresses current challenges and aims to enhance the productivity and competitiveness of industries in the global market.
BOI APPROVES P2-BILLION DAIRY PROJECT
The Board of Investments (BOI) has approved the P2-billion project of Metro Pacific Dairy Farms, Inc. (MPDF) to establish an integrated dairy farm and processing facility in Laguna.
The BOI said in a statement May 20 (Monday) that the facility will produce high-quality dairy and plant-based beverages, boosting the local dairy production. It will start operations in March 2025.
“We at the BOI are excited about the introduction of advanced dairy farming technology, which promises to deliver superior quality and production efficiency while significantly boosting local dairy and plant-based beverage production,” Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said.
PHINMA GROUP TO ACQUIRE PETRA CEMENT
The Phinma Group through Philcement Corporation is acquiring Petra Cement Inc. for P500 million, according to a regulatory filing.
Philcement Mindanao Corporation, a subsidiary of Philcement, will pay the P500 million in exchange for the outstanding shares of Petra Cement that has a cement manufacturer with a facility in Zamboanga del Norte,
To recall, Philcement Corporation signed a manufacturing and sale agreement with Petra Cement in January this year to operate a cement grinding facility in Zamboanga del Norte that has an annual capacity of 500,000 metric tons.
DOF: GOVT STICKING TO 2024 REVENUE TARGETS
The government is sticking to its revenue target for this year with no need to introduce new inflation-inducing tax measures, the Department of Finance (DOF) said on May 20 (Monday).
“We’re keeping the targets. [We] will make [a] review [by] end of June,” Finance Secretary Ralph Recto told reporters in a Viber message.
The total revenue collection target for 2024 is expected to reach P4.3 trillion.
METRO RETAIL STORES GROUP INCOME DOWN 16% IN Q1
Metro Retail Stores Group Inc. (MRSGI) earned P50.3 million in the first quarter of this year, or a decrease of 16% from P60 million a year earlier, the company said on May 20 (Monday).
MRSGI, however, said net sales, went up by 4.8% to P8.7 billion, which is the highest recorded for January-March since the company listed its shares in the stock market in 2015.
The company’s food retail business grew by 7.9% on robust sales of basic grocery items, but its general merchandise category dipped 2.9% due to consumers feeling inflationary pressures.