MANILA, Philippines – Oriental & Motolite Marketing Corp., manufacturer of vehicle batteries, warned that it may close its plant in the country if the peso continues to appreciate and cut its export earnings.
Speaking at a forum organized by multisectoral group Competitive Currency Forum yesterday, Oriental & Motolite president Don Albert Cuesta said that as 55 percent of the firm’s output is shipped overseas and at least 54 percent of input is sourced locally, a sudden appreciation of the peso against the dollar would hurt their business.
“I don’t want to belittle the Philippines but it is a very small market. We are exporting 54 percent of our products so if we lost 54 percent of sales, then that means we have to close shop,” he said.
He noted that all other things being equal, a P2 appreciation against the dollar threatens to erode five percent of their export revenue translating to a 33 percent reduction of export earnings.
A P2 appreciation of the peso would translate to the firm earning only P33 for every P100 that they used to make.
He also said that if they were planning to invest in a new state of the art battery assembly line that would have given a 20 percent investment rate of return when the exchange rate was P43, that same rate of return would only be one percent given the current exchange rate.
“We do not know for how long and how far this currency situation will go. But it can certainly come to a point where we will be attracted to invest in manufacturing abroad and retiring our Filipino workers or simply do trading,” he said. –Louella D. Desiderio, The Philippine Star
September 18 –
International Equal Pay Day
“Increase wages now,
more than other cost items.
For widespread, practical equality!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the recommendations of the 2021 ILO Commission of Inquiry
against serious violations of protocols of
Forced Labour and Freedom of Association.
Accept the National Unity Government (NUG)
of Myanmar. Reject Military!
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September –
5 Sept – Intl Day of Charity
7 Sept – Intl Day of Clean Air for Blue Skies
8 Sept – International Literacy Day
12 Sept – United Nations Day for South-South Cooperation
15 Sept – International Day of Democracy
16 Sept – International Day for the Preservation of the Ozone Layer
17 Sept – World Patient Safety Day
18 Sept – International Equal Pay Day
21 Sept – International Day of Peace
26 Sept – International Day for the Total Elimination of Nuclear Weapons
27 Sept – World Tourism Day
28 Sept – International Day for Universal Access to Information
29 Sept – International Day of Awareness of Food Loss and Waste
30 Sept – World Maritime Day
Monthly Observances:
Health, Safety and Sanitation Month
National Clean-up Month
Civil Service Month
National Peace Consciousness Month
Social Security Month
Rule of Law Month
National Teachers’ Month (Sept 5-Oct 4)
Weekly Observances:
Sept 17 – 23:
World Clean and Green Week
Week 2: Education Week
Week 4: Medicine Week
Last Week: National Family Week
Daily Observances:
Third Saturday:
International Coastal Clean-up Day
Third Monday: World Health Day
Last Friday: National Maritime Day
Sept 8: National Literacy Day
Sept 15: Philippine Medicine Day
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