Philippines Central Bank holds rates steady, exports mixed
Updated 15 June 2012
Reuters
MANILA: The Philippine central bank kept its main policy rate steady at a record low for a second consecutive meeting yesterday, saying inflation pressures were manageable and market liquidity adequate, bolstering expectations it will stand pat on rates for the rest of the year.
The monetary authority also expects inflation to remain subdued this year and the next, as it kept its average inflation forecast this year at 3.1 percent and lifted slightly its 2013 estimate to 3.4 percent from 3.3 percent.
The decision to hold the overnight borrowing rate at 4 percent was widely expected. All but one of 11 analysts in a Reuters poll this week had forecast steady rates, and most expect the central bank to hold for the rest of the year.
“The Monetary Board believes the benign inflation outlook and robust domestic growth provide adequate room to keep policy rates unchanged,” Governor Amando Tetangco said in a statement, adding the total 50-basis-point cut in policy rates and bank reserve requirement reductions earlier in the year were still working their way through the economy.
But some economists said after the meeting there may be room to cut rates to a new record low with increasing evidence of continued weakness in the global economy.
Data earlier showed overall Philippine exports recovering slightly in April, but a sharp drop in electronics shipments underscored the risk of weakening external demand facing Asia.
“We think the door is still very much open for more easing and I think the monetary authorities themselves have mentioned this in the past, that they will watch for any development that could lead them to make an adjustment if necessary,” said Jun Neri, economist at Bank of the Philippine Islands.
Exports, which account for about two-fifths of the country’s GDP, rose 7.6 percent in April from a year earlier, as growth in shipments of garments and furniture offset a steep drop of 23.8 percent in electronics and semiconductors, the first decline in the sector since December.
“The key short-term risk to watch out for the growth headwind from Europe. If they can get through this dangerous phase relatively unscathed then a normalization of rates would quickly rise up in the policy agenda,” said Aninda Mitra, economist at ANZ in Singapore.
“There is no immediate need for stimulus per se.”
Bucking a global slowdown, the Philippines grew at its strongest quarterly pace in two years in January to March, and the central bank believes the momentum can be sustained with domestic demand seen staying resilient and the government bent on spending more on critical infrastructure.
Strong domestic demand, underpinned by more than $ 1.6 billion in monthly remittances from Filipinos abroad, should help offset the weakness in exports, authorities have said.
Manila ramped up spending in the early part of the year, bolstering economic activity. But the spending level in the first three months of 2012, while 13 percent higher than last year, was still below earlier government projections.
Analysts in a Reuters quarterly poll in April were less optimistic about the country’s growth prospects as they forecast the economy to grow 3.8 percent this year, slower than the government’s 5 to 6 percent target.
Last week, China and Australia cut interest rates to boost domestic demand and help shield their economies from growing downside risks stemming from the deepening euro zone crisis.
The central bank’s policy-making Monetary Board holds a rate-setting meeting every six weeks. It meets next on July 26.
Beyond government: how digital defense is becoming a priority across Saudi Arabia
Updated 7 sec ago
Reem Walid
RIYADH: Saudi Arabia’s cybersecurity market is entering a decisive growth phase, driven by rapid digital transformation, expanding cloud and artificial intelligence adoption, and increasingly robust regulatory frameworks.
Sustained public and private investment under Vision 2030 is expected to propel the sector into one of the fastest-growing and most structurally advanced cybersecurity markets in the region.
According to Dimension Market Research, the Kingdom’s cybersecurity market size is expected to reach $11.3 billion by the end of 2033 at a compound annual growth rate of 14.2 percent.
Projected size of the cybersecurity market in Saudi Arabia
In recent years Saudi Arabia has experienced consistent and strategic growth in cybersecurity investments, largely fueled by the rapid adoption of digital services across organizations.
Samer Omar, cybersecurity and digital trust leader at PwC Middle East, said there was around SR15.2 billion ($4.05 billion) of investment in the sector in Saudi Arabia in 2024, and if current trends continue, most market assessments suggest the industry could reach between $7 billion and $9 billion by 2030.
“What matters most is how organizations are maturing. As more services move to the cloud and AI becomes embedded in day-to-day operations, security is increasingly part of early decision-making rather than an afterthought,” Omar told Arab News.
Samer Omar, cybersecurity and digital trust leader at PwC Middle East. (Supplied)
He added: “I expect the market to continue growing as organizations strengthen governance, modernize legacy systems, and invest in more advanced monitoring and response capabilities.”
This market expansion is not just reactive or trend-driven — Saudi Arabia’s cybersecurity growth is structurally anchored in Vision 2030’s digital-first agenda, mandatory regulatory frameworks, and the sheer scale of state-led investments in digital and infrastructure projects.
According to Maximilian Chowanetz, partner at Kearney Middle East, and his colleague San Jain, principal in the firm’s digital and analytics practice in Dubai, the market is currently valued at approximately SR17 billion, is projected to more than double to around SR35 billion by 2030, reflecting annual growth of over 15 percent.
“Unlike many emerging markets where cybersecurity adoption remains uneven, Saudi Arabia combines giga-projects, nationally deployed digital platforms, and expanding cloud infrastructure with increasingly stringent compliance requirements across sectors. This creates sustained, non-discretionary demand for advanced cyber capabilities, particularly in critical infrastructure protection, cloud security, and operational technology/information technology convergence,” Chowanetz and Jain said in a joint statement.
They added: “As digital services become embedded across the economy, cybersecurity is evolving from a supporting IT function into a core enabler of national resilience and economic competitiveness. These fundamentals position Saudi Arabia as one of the fastest-growing and most structurally advanced cybersecurity markets in the region.”
Investment beyond finance, government
Cybersecurity is increasingly emerging as a key priority across various rapidly evolving sectors.
In Saudi Arabia, cybersecurity investment is growing not only in finance and government but also across sectors such as healthcare, energy, and the broader digital economy, where fast-paced digitization is surpassing conventional security frameworks. These industries lie at the crossroads of national priorities, operational risks, and major technology rollouts under Vision 2030.
From PwC’s lens, Omar shed light on how in the energy and industrial sectors the integration of connected technologies is on the rise, heightening the demand for robust protection of operational systems. Similarly, healthcare providers are broadening their digital health offerings, making security and privacy essential components of daily clinical practices.
“Telecoms, cloud providers, and data centers are also strengthening their capabilities as they support the Kingdom’s growing digital infrastructure. Retail, e-commerce, and education are evolving quickly as well, each with their own requirements as they introduce new digital platforms and services,” he said.
The official added: “What ties these sectors together is the recognition that secure digital services are essential to future growth. As the Kingdom continues progressing toward Vision 2030, cybersecurity is becoming a core enabler for sectors that are modernizing at pace.”
Maximilian Chowanetz, partner at Kearney Middle East. (Supplied)
From Kearney’s perspective, Chowanetz and Jain also highlighted how healthcare is digitizing at speed, with electronic health records, telemedicine platforms, and connected medical devices expanding the attack surface and making data protection and patient safety critical imperatives.
“In energy and critical infrastructure, the integration of smart grids, renewables, and industrial IoT is driving demand for advanced OT and industrial control systems security frameworks, an area where Saudi Arabia’s scale positions it as a global reference point. Alongside this, the rapid expansion of the digital economy, underpinned by cloud adoption and connected ecosystems, is elevating the need to secure data, networks, and edge devices,” they said.
The two spokespeople added: “Together, these sectors represent where cybersecurity is no longer discretionary, but foundational to service continuity, public trust, and economic resilience.”
Opportunities for local, global players
As with many other sectors in Saudi Arabia, cybersecurity presents a wealth of opportunities for both local and international players to tap into.
Omar from PwC highlighted that a major focus is growing cybersecurity talent, with rising demand pushing many organizations to rely on managed services and expert support.
He underlined that small and medium-sized businesses also present key opportunities, seeking affordable, user-friendly security solutions, ideally with Arabic-language support, to match their needs.
“As cloud adoption increases, there is rising demand for cloud security, identity management, and secure development practices. Industrial environments also need tailored support as they integrate older systems with modern technologies,” Omar said.
He added: “We’re also seeing interest in practical guidance related to the Personal Data Protection Law, along with locally relevant threat intelligence and training. These needs create space for both local and global providers to offer solutions that help organizations move forward with confidence as the digital economy continues to grow.”
From their side, Chowanetz and Jain shed light on how the Kingdom’s cybersecurity market holds major opportunities, with key gaps in capability, scale, and specialization — especially as demand expands beyond the public sector.
They went on to note that talent shortages are driving demand for managed services, automation, and upskilling to maintain resilience. Meanwhile, SMEs remain underserved, facing rising regulatory pressures but lacking affordable cybersecurity solutions — creating strong demand for scalable, compliance-ready offerings.
San Jain, principal at Kearney Middle East’s digital and analytics practice in Dubai. (Supplied)
“Sector-specific solutions remain underdeveloped, particularly in areas such as health care device security, OT and ICS protection, cloud sovereignty, and IoT segmentation. Addressing these gaps will be critical not only to strengthening national cyber resilience but also to attracting investment, accelerating localization, and supporting sustainable growth across Saudi Arabia’s digital economy,” Chowanetz and Jain said.
Awareness increasing for individuals, SMEs
As digital services expand under Vision 2030, cybersecurity in Saudi Arabia is becoming a personal priority, with risks now extending to homes, devices, and daily transactions. At the same time, people are becoming more aware of protecting their personal data and managing their digital lives more securely.
From PwC’s side, Omar indicated that clearer data protection laws and educational initiatives have improved public awareness of cybersecurity, especially among younger audiences.
“Over time, this gradual change plays an important role in building long-term digital confidence and supporting the Kingdom’s wider digital ambitions,” he said.
On Kearney’s behalf, Chowanetz and Jain clarified that with national platforms like Absher and Tawakkalna and the rise of fintech and smart cities, cybersecurity in Saudi Arabia now directly affects individuals, expanding risks beyond organizations to personal data and daily life.
“As consumer awareness rises, driven by both local experience and global breaches, trust is becoming the critical currency of Saudi Arabia’s digital ecosystem. This shift is accelerating demand for user-centric security solutions, stronger data protection frameworks, and shared accountability between institutions and citizens to ensure confidence, resilience, and long-term digital adoption,” they said.
