While there may be a chance that this might retain and have an effect on OFW remittances this 12 months, the more than 18 percent increase in BPO [business process outsourcing] sales for the primary six months of 2016 should, one way or the other, cushion the gentle remittances flows,” Guinigundo said.

Domestic politics
Asked if political uncertainties within the country can also be the purpose for the decline in remittances, Guinigundo stated “it may have a few remote effect on investment and output in the end, however I don’t suppose that is the cause for the decline inside the July remittances.”

Biswas shares the same view, noting the ultra-modern monetary information does not show any signal that political uncertainty in the Philippines is having an impact on remittances or economic activity to this point.

The IHS Markit economist mentioned the effect of decrease oil and gas prices has weighed on increase within the Middle East oil generating international locations – key employment hubs for overseas Filipinos

“Middle East monetary establishments have also been derisking their monetary relationships, because of the worldwide strain on Middle East countries to crack down on illicit economic flows related to terrorism and money laundering,” he added.

Preliminary statistics from the Philippine Overseas Employment Administration (POEA) confirmed the quantity of newly employed land-based totally employees dropped 10.3 percent yr-on-12 months to 235,895, while that of sea-based totally people fell by means of 44.4 percentage to 134,360.

However there may be evidence that numerous bad factors are impacting on remittances,” he stated.

Biswas stated the derisking of relationships with the aid of correspondent banks with remittance corporations as part of threat control techniques is making it extra tough for Filipino employees overseas to remit budget home.

“This derisking manner has been underway properly before the RCBC case, so isn’t specially driven by that event, but displays a much wider worldwide trend among banks globally to tighten up their relationships with different monetary companies due to fears about potential cash laundering vulnerabilities,” he said.

RCBC is the Rizal Commercial Banking Corporation, which figure in the cash laundering scandal that involved $eighty one million of stolen finances from the Bagladesh Bank’s account with the Federal Reserve Bank of New York. RCBC changed into slapped a P1 billion pleasant via the BSP for ignoring anti-money laundering protocols, the largest regulatory high-quality inside the history of the Philippine banking industry.

Money laundering
The BSP legitimate defined derisking inside the Middle East is related to issues about money laundering and terrorist financing.

The Middle East is one of the fundamental resources of overseas Filipino remittances, with 80 percent of overall coins remittances coming from Saudi Arabia, the United Arab Emirates (UAE), Qatar and Kuwait.

Exacerbating the impact of derisking is vulnerable oil costs, which dampens the propensity of Saudi Arabia, UAE and other oil producing markets to foreign places people with jobs, Guinigundo pointed out.

Providing an positive view is IHS Markit Asia-Pacific chief economist Rajiv Biswas, who said that no matter the five.4 percentage drop 12 months-on-yr, the general degree of remittances within the first seven months of 2016 has remained stable.

Personal remittances are transfers in coins or in kind, in addition to capital transfers between families.

In the seven months to July, the upward thrust in non-public remittances slowed sharply to two.9 percent – from 7.4 percent a year in advance – at $sixteen.92 billion from $16.Forty four billion.

Cash remittances coursed via banks totaled $2.Thirteen billion in July, down five.Four percent from $2.25 billion registered in July 2015. In June, coins remittances totaled $2.33 billion.

In the first seven months of the year, the 3 percentage boom price in coins remittances turned into slower compared with 7.7 percentage in January to July 2015

Guinigundo said derisking increases the cost of cash transfers, because additional charges are incurred in complying with anti-money laundering and counter terrorist financing necessities.

“In reality even the Arab Monetary Fund, IMF [International Monetary Fund] and The World Bank have documented numerous cases of derisking in the Middle East jurisdictions,” he said.

Latest facts from the BSP confirmed a year-on-yr drop in private and coins remittances in July.

Personal remittances stood at $2.35 billion in July, down five.Four percentage from $2.49 billion yr earlier, and had been additionally lower compared with the $2.57 billion in June.

Foreign banks’ fears brought on through anti-money laundering, terrorism issues
THE derisking approach of foreign banks is using the cost of sending cash to the Philippine higher, inflicting a decline in remittances by foreign places Filipinos, a central financial institution legit advised The Manila Times over the weekend.

“We are seeing the continuing narrative of derisking, frightening the otherwise ordinary drift of remittances,” Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said.

The approach is especially pushed with the aid of the commercial enterprise decisions of overseas correspondent banks in weighing the dangers and advantages of handling remittance groups, and in the method remaining the debts of numerous money transfer operators (MTOs), to limit their publicity to feasible cash laundering channels and other financial crimes.

FOREIGN portfolio funding of $409.01 million in internet quantity flowed out of the Philippines in February this 12 months, the crucial financial institution stated on Thursday.

Driving the recent cash out were elements along with the closure of mining organizations in the usa even as inflows from the USA faded because of the brand new management’s exchange and immigration regulations, the Bangko Sentral ng Pilipinas (BSP) stated.

A non-public analyst stated monetary and tax reforms could nonetheless support tremendous investor sentiment, although he counseled that growing domestic political risks could also hose down investment appetite.

The net outflow of portfolio investment in February 2017 reversed a net inflow of $fifty seven.74 million recorded in February 2016, as well a $301.33-million internet inflow in January, legit records confirmed.

The BSP stated general outflows reached $1.390 billion in February, some distance exceeding overall inflows of $981.20 million throughout the month.

For the first two months of the 12 months, warm cash registered a internet outflow of $168.41, widening from the $60.89 net outflow published a yr in advance.

Trump guidelines, DENR actions

Focusing on month-on-month inflows, the BSP stated registered overseas portfolio investments for the month amounted to $981 million, reflecting a 14.5 percent decline from the $1.1 billion in January 2017.

It stated a few of the traits within the home and international fronts that weighed on investor sentiment have been concerns over exchange and immigration regulations under the Trump administration.

The primary financial institution also stated that the decline in registered investments in February could also be traced to the Department of Environment and Natural Resources’ closure order for 25 mining companies everywhere in the usa.
“Year-on-12 months, an 8.2 percentage lower in inflows turned into additionally noted, as compared with the $1.1 billion figure recorded last yr,” it introduced.

The BSP said that outflows for February rose via sixty four.Four percentage from $846 million in January due to earnings-taking and withdrawals from investments in peso authorities securities.

Year-on-yr, outflows rose with the aid of 37.Five percentage from the $1.0 billion degree in 2016, it said.

About 91.Three percent of investments registered in the course of the second month had been in Philippine Stock Exchange-listed securities, bearing on in particular banks, keeping corporations, assets organizations, food, beverage and tobacco companies, and utilities businesses); whilst the eight.7 percentage stability went to peso government securities.

The United Kingdom, United States, Malaysia, Hong Kong, and Norway were the pinnacle 5 investor countries for the month, with combined percentage to general of 71.1 percent. The United States persevered to be the main destination of outflows, receiving 85.0 percent of total remittances.

Listed cement organisation Eagle Cement Corp. Noticed its internet income climb to P6 billion in 2019, 25-percent better than the P4.Eight billion it posted in 2018.

In a announcement, Eagle said its net sales also surged with the aid of 20 percentage to P19.8 billion ultimate year from P16.5 billion in 2018 at the returned of “sturdy call for from non-public intake” and “heightened sales quantity increase” with the aid of sixteen percentage.

“Our sturdy boom this yr is evidence of the business enterprise’s strong strategy and soundness of our commercial enterprise version helped by way of the sturdy guide from our customer base. We preserve our high quality stance that call for will subsequently select up once the improved community quarantine is lifted via the government and we continue to be committed to handing over excessive great cement to both personal and public sectors as soon as this takes place,” Eagle President and Chief Executive Officer Paul Ang was quoted as pronouncing.

Gross earnings, likewise, soared 20 percent to P8.7 billion, with a extensive margin of 44 percent.

“Ebitda (income before hobby, taxes, depreciation and amortization) rose by way of 16 percentage to P7.9 billion, translating into an Ebitda margin of 40 percentage,” the organisation stated.

“For the fourth region alone, Eagle published a five-percent increase in internet income to P4.Five billion. Ebitda improved five percent to P1.8 billion, with margin kept at 40 percentage. The company’s marvelous margins beat enterprise friends,” it delivered.

Furthermore, its totals property grew via 8 percentage to P49.1 billion, even as its overall liabilities fell 7 percentage to P11.7 billion. Its stockholder’s fairness multiplied with the aid of 14 percent to P37.3 billion.

The neighborhood cement employer disclosed it’s far on target in completing its fifth finish mill, which might amplify its Bulacan plant’s annual cement output to eight.6 million metric tons by means of 2020.

Korean beverage maker Lotte Chilsung Beverage Co. Ltd. Has gotten the nod from the Philippine Competition Commission (PCC) regarding its proposed acquisition of stocks in neighborhood beverage and snack manufacturer Pepsi-Cola Products Philippines Inc.

In a selection dated March 26, 2020, the PCC said the proposed stocks acquisition “will now not probably result in tremendous lessening of competition.”

“The commission based totally this finding upon the Mergers and Acquisitions Office’s assessment that there remains sufficient aggressive constraints inside the marketplace for the supply of carbonated gentle liquids, non-carbonated beverage and bottled water within the country,” the PCC defined in a assertion.

Likewise, the PCC stated the acquisition “will now not likely provide the parties an increased potential or incentive to engage in input or purchaser foreclosures, within the international marketplace for the supply of polyethylene terephthalate and the country wide marketplace for the distribution of non-alcoholic beverages.”

The transaction could contain Lotte Chilsung obtaining up to 2.134 billion not unusual stocks, which represents fifty seven.78 percentage of Pepsi-Cola’s overall issued and brilliant capital stock.

Lotte Chilsung is a subsidiary Lotte Corp., that is one of the essential shareholders in Pepsi-Cola Products Philippines.

The Philippines launched P1.9 billion as capital contribution to the Asian Infrastructure Investment Bank in January to March.

The authorities objectives to spend P847 billion on infrastructure improvement this yr, overlaying projects in all regions, such as small-, medium- and big-scale ventures.

In the six years to 2022, the authorities intends to spend P8.Four trillion on infrastructure. EXPORT agencies can take benefit of greater market possibilities through an expanded local application by the Department of Trade and Industry (DTI) targetting $1 billion in additional income by way of 2022, an export legit said.

Fenina Bonoan, assistant leader of the Export Marketing Bureau’s (EMB) purchaser and business division, stated over the weekend the Regional Interactive Platform for Philippine Exporters (Ripples) Plus has been multiplied to consist of 12 precedence sectors through the regionalization of innovation centers.

The priority sectors are tourism, chemicals, fixtures, construction, agri-commercial enterprise, digital manufacturing offerings and semiconductor manufacturing provider, aerospace components, tool and die, delivery and logistics, automobile and car components, wearables and gifts and decors and housewares, records era-enterprise technique management, and shipbuilding and roll-on, roll-off (Ro-Ro) and small and medium-sized vessels. Ripples offers micro, small and medium businesses (MSMEs) and large companies fantastic interventions thru schooling and capability building, funding and marketing and advertising, support for innovation and product improvement and layout, and marketplace access facilitation thru mutual reputation agreements and certification.

The strategic interventions intention to prepare agencies for competition in terms of price, amount, quantity, excellent and packaging, as well as compliance with market-entry necessities and rules and regulations, and layout leadership or alignment with contemporary layout tendencies.

Export-prepared groups are promoted distant places and paired with potential foreign consumers.

Ripples intention to expand 1,000 tech-enabled corporations inside the five years to 2022, under the important thing and emerging sectors of the Philippine Export Development Plan (PEDP).

It is a joint application of the EMB, DTI-Regional Operations StockGlobal broker Group, Philippine Trade Training Center, Center for International Trade Expositions and Missions, Design Center of the Philippines, Bureau of Domestic Trade Promotion and Philippine International Trading Corp.