Tag: Business

SEOUL, South Korea’s producer prices rose for the fourth consecutive month in March, driven in part by soaring prices of agricultural goods and industrial goods, central bank data showed Tuesday.

The producer price index, a major barometer of consumer inflation, increased 0.2 percent in March from a month earlier, following 0.3 percent and 0.5 percent on-month gains, respectively, in February and January, according to the preliminary data from the Bank of Korea (BOK).

On a yearly basis, the index rose 1.6 percent after a 1.5 percent on-year gain the previous month.

The rise is blamed on a 1.3 percent increase in agricultural products and a 0.6 percent advance in prices of industrial goods.

Producer prices are one of the key indicators that determine the trajectory of inflation, as they influence the prices that businesses charge to consumers in the months ahead.

South Korea’s inflation stayed over 3 percent for the second consecutive month in March on record prices of fruit and rising global oil prices.

Consumer prices, a key gauge of inflation, rose 3.1 percent on-year last month, following a 3.2 percent increase the previous month, according to the data from Statistics Korea.

The country’s central bank froze its key rate for the 10th straight session at 3.5 percent early this month amid slower-than-expected inflation moderation.

The rate freezes came after the BOK delivered seven consecutive rate hikes from April 2022 to January 2023.

Source: Yonhap News Agency

SEOUL, South Korea will take “instant and bold” measures if volatility in the financial market grows excessively amid escalating tensions in the Middle East, the finance ministry said Tuesday.

The foreign exchange authorities also made a verbal intervention against the Korean won’s sharp decline, vowing to stay vigilant.

Concerns about a wider conflict in the Middle East have grown further after Iran launched a drone and missile attack against Israel over the weekend in response to a suspected Israeli attack on Iran’s embassy in Syria.

The international community has strongly condemned Iran’s action but has called on Israel to show restraint.

“The incident has limited impact on our oil supplies, exports and imports, and supply chains. But we remain open to all possibilities and prepare for stronger responses as military tensions remain high,” First Vice Finance Minister Kim Byoung-hwan said during a government-wide emergency meeting on the matter.

“If the market shows excessive volatility compared with
our economic fundamentals, the government will take action instantly and boldly,” he added.

On Tuesday, the benchmark Korea Composite Stock Price Index plunged 2.28 percent to close at 2,609.63, and the Korean won fell sharply against the U.S. dollar to a fresh low of the year of 1,394.50 won.

During intraday trading, the local currency had dropped to the psychological level of 1,400 won per dollar for the first time since 2022.

To curb the fall of the local currency, the foreign exchange authorities stepped in, saying they are closely monitoring the market with high vigilance and that excessive one-sided movement is far from desirable for the economy.

The ministry said the government has kept close tabs on global oil prices and its supply situation amid lingering concerns of inflation.

South Korea depends on imports for most of its energy needs, and rising global oil prices have caused inflationary pressure to flare up in the country.

Dubai crude, the country’s benchmark, has been on a constant rise in
recent months, reaching US$89.87 per barrel in April from $78.85 in January, $80.88 in February and $84.18 in March amid the Israel-Hamas war and other geopolitical uncertainties.

Consumer prices, a key gauge of inflation, increased 3.1 percent on-year in March, rising over 3 percent for the second consecutive month on high prices of fruits, fresh food items and energy.

In response to growing uncertainties in the Middle East, the Seoul government set up a joint emergency response team of related agencies to monitor the economic situation and financial market on a real-time basis and has drawn up countermeasures based on contingency plans, according to the ministry.

The government also decided to extend the tax cut on fuel consumption by an additional two months through the end of June.

Source: Yonhap News Agency

Manila – The Philippines has achieved a milestone at this year’s China International Import Expo (CIIE), with total sales reaching USD1.1 billion.

According to Philippines News Agency, this figure surpasses the Department of Trade and Industry’s (DTI) target of USD700 million and sets a new record for the country’s performance at the China expo. In the previous year, the Philippine pavilion at CIIE had reported sales of USD655 million.

CITEM, the export promotions arm of the DTI, detailed that of the total sales this year, USD900 million were from purchase agreements, while the remaining USD226 million comprised booked sales, sales under negotiation, retail sales, and business-matching activities. DTI Undersecretary Ceferino Rodolfo emphasized the importance of CIIE as a platform for showcasing top-selling Filipino food products and attracting potential Chinese investors, thereby creating new business opportunities and boosting the Philippine economy.

Held annually in China, the CIIE serves as a global stage for foreign enterprises aiming to tap into the world’s largest market. This year, the Philippines’ standout products at the fair included primary agricultural exports such as bananas, pineapples, specialty coffee, and durian. Notably, durian, often referred to as the ‘king of fruits’ and known for its strong aroma, gained access to the Chinese market this year.

Glenn Peñaranda, the commercial counselor at the Philippine Trade and Investments Center in Shanghai, highlighted the Philippine government’s ongoing efforts to enhance export capacities to China through partnerships with Chinese enterprises. He emphasized the significance of a collaborative, whole-of-nation approach in export development, involving various sectors to strengthen the entire value chain.

Batangas City, Philippines – In a move to enhance foreign direct investment in Batangas, key stakeholders from both the private and public sectors have joined forces. This collaboration aims to promote and attract investment to the province, as discussed during the First Batangas Local Economic Development and Investment Promotions Conference held at LIMA Park Hotel.

According to Philippines News Agency, head of the Philippine Economic Zone Authority (PEZA) Ecozone Development Department, the Philippines aims to become a leading investment destination in Asia. Daza emphasized PEZA’s role in encouraging the private sector to develop, maintain, and operate economic zones at no expense to the agency or the government. The government, through the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, offers a range of incentives to entice investors, including income tax holidays, a 5 percent Special Corporate Income Tax, duty exemption on importation of capital equipment, and VAT exemptions.

Maria Rosario Dominguez, director of the Board of Investments (BOI) Domestic Investments Promotion Service, elaborated on the CREATE law, highlighting its comprehensive incentive program. She defined Tier 1 businesses, which are highly preferred for investments, as those with significant potential for job creation and value creation through innovation.

The conference also saw Aboitiz InfraCapital, the developer of LIMA Estates in Batangas, announcing its expansion plans beyond Metro Manila, including a new development in Tarlac City. This move follows the recent acquisition of 200 hectares by LIMA Land Inc., a subsidiary of Aboitiz InfraCapital, from Luisita Land, Inc.

Makati City – Finance Secretary Benjamin Diokno expressed optimism about the Philippine economy’s growth trajectory, confident in meeting the economic growth target set for 2023. He shared these views during the Pilipinas Conference 2023 at The Peninsula Manila in Makati City.

According to Philippines News Agency, Diokno highlighted that the Philippine economy achieved the strongest third-quarter growth of 5.9 percent in the region, leading to a gross domestic product (GDP) expansion of 5.5 percent for the first three quarters of 2023. This growth outpaced that of several regional counterparts including China, Indonesia, Vietnam, Malaysia, and Singapore. Diokno stated that despite external risks and domestic challenges, the Philippines is one of the brightest spots in the region. He is confident that the country will attain its growth target of 6 to 7 percent for the year and accelerate further in the coming years. The Finance chief also mentioned the government’s commitment to macroeconomic stability and fiscal sustainability through the implementation of the Medium-Term Fiscal Framework (MTFF). Key reforms identified under the MTFF by the Department of Finance include the Real Property Valuation and Assessment Reform Bill, Passive Income and Financial Intermediaries Taxation Bill, and VAT on digital services. The department is also advocating for the taxation of sweetened beverages, junk food, single-use plastics, motor vehicle road users, and a rationalized mining fiscal regime. These measures aim to enhance tax administration, fairness, efficiency, and promote environmental sustainability.

Quezon City – The Philippine Hotel Owners Association (PHOA) has announced the upcoming construction of 48 new hotels across the Philippines, scheduled between 2023 and 2028. The expansion, representing at least 15,000 new rooms, signifies strong investor confidence in the country’s tourism and hospitality sectors.

According to Philippines News Agency, the robust investment landscape reflects a bright future for Philippine tourism. The projects are not limited to major gateways like Manila and Cebu but extend to other cities. Bengzon highlighted the growing demand in emerging destinations, with notable expansions planned by Park Inn by Radisson and Filinvest Hospitality in various cities. The hotel industry has reportedly enjoyed higher room occupancy in 2023 compared to the previous year, driven by domestic demand and the return of key international markets like South Korea and China. Bengzon emphasized the importance of air connectivity for the sector’s growth, noting that increased flights are crucial for attracting international tourists. The sector’s recovery efforts include upgrading facilities, incorporating data analytics for personalized guest experiences, and adopting technology for contactless services. The executive also noted the shift in consumer preferences towards organic food and beverages and a greater appreciation of local culture and history.