| Multilateral Trade Agreements
Trade chief says RCEP to be concluded this year, signed in 2020 philstar.com 18th Oct 2019
Negotiations on the Regional Comprehensive Economic Partnership, or RCEP, are set to conclude this year, with the signing of the free trade deal seen happening in early 2020, Trade Secretary Ramon Lopez said. “With 20 out of the 25 chapters concluded in the last meeting in Vietnam, the full conclusion of the RCEP this year is very probable,” Lopez said in a statement released Friday. “RCEP parties are pushing for their respective interests and there are naturally complexities in the negotiations, amidst the backdrop of a changing global economic environment,” he added.
South Korea cites smooth sailing FTA discussions with Philippines Inquirer 17th Oct 2019
Negotiations between the Philippines and South Korea on the planned free trade agreement (FTA) is “smooth sailing”, South Korean Ambassador to the Association of Southeast Asian Nations (Asean) Lim Sung-nam said Wednesday. Lim made the announcement as Seoul reportedly reached a preliminary trade deal with Indonesia, a move consistent with the goals of Korea’s New Southern Policy which is aimed at strengthening its ties with Asean member states.
Lawmakers back expansion of PHL foreign policy recalibration with Duterte Russia trip - Jovee Marie de la Cruz BusinessMirror 10th Oct 2019
LAWMAKERS on Tuesday backed the expansion of the Philippines’s foreign policy recalibration under President Duterte, who recently announced the government’s plan to strengthen diplomatic and economic ties with several countries in the next three years. Deputy Speaker for Finance Luis Raymund Villafuerte, in a statement, said President Duterte shifted his foreign policy recalibration to high gear during his just-concluded official visit to Russia that has led to stronger economic ties between Manila and Moscow.
National Affairs
Business groups now support CITIRA Manila Bulletin Business 21st Oct 2019
The country’s business groups have rallied behind the proposed overhaul of the country’s tax incentives system under the Corporate Income Tax and Incentives Rationalization Act (CITIRA) Bill but put some conditions and refinements to the proposed measure. The CITIRA bill seeks to lower the corporate income tax (CIT) and at the same time widen the tax base and promote discipline in tax expenditure through a more prudent, targeted and transparent fiscal incentives system.
National ID issuance to start April 2020 Business World 20th Oct 2019
DISTRIBUTION OF identification cards under the Philippine Identification System (PhilSys) will start by April next year, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno announced. “The card issuance will start in April 2020,” he said on Oct. 17 at a roundtable discussion during the World Bank Group/International Monetary Fund (IMF) Annual Meetings held in Washington D.C. Mr. Diokno touted PhilSys as an important tool in the central bank’s financial inclusion agenda by providing an ID to all Filipinos, especially those in remote and underserved areas.
Duterte promises business sector an audience for corruption concerns Business World 18th Oct 2019
PRESIDENT Rodrigo R. Duterte told the business sector Thursday night that he is willing to leave Cabinet meetings to hear out any corruption issues that investors may bring up. Speaking late Thursday at the 45th Philippine Business Conference and Expo (PBC&E) at the Manila Hotel, Mr, Duterte encouraged his audience to bring any corruption concerns to his attention.
PH poverty rate seen falling below 20% starting 2020 Inquirer 18th Oct 2019
Amid easing inflation and rising incomes, the World Bank expects poverty rate in the Philippines to fall below 20 percent starting next year. In its Macro Poverty Outlook for East Asia and the Pacific report, the World Bank projected poverty incidence in the Philippines at 20.8 percent by the end of 2019, down from 26 percent in 2015, the latest comparable full-year date from the Philippine government. The report was released this week on the sidelines of the Washington-based lender’s annual meeting. The World Bank had estimated poverty incidence in the Philippines at 24.5 percent for 2016, 23.1 percent for 2017 and 21.9 percent for 2018.
Philippine police chief resigns amid drug allegations ABC News 14th Oct 2019
The Philippine national police chief resigned on Monday after he faced allegations in a Senate hearing that he intervened as a provincial police chief in 2013 to prevent his officers from being prosecuted for allegedly selling a huge quantity of illegal drugs they had seized. Gen. Oscar Albayalde said his decision relinquishing his post was accepted by Interior Secretary Eduardo Ano over the weekend but insisted on his innocence, saying he has never been criminally or administratively charged for the alleged irregularity. Albayalde, a 55-year-old former special forces commando, resigned a few weeks before his scheduled retirement on Nov. 8.
Rise of a new consumerism philstar.com 11th Oct 2019
Consumer activism in the Philippines in recent years has suffered a serious blow as the voices of organized and individual dissent were drowned. It is now difficult to pinpoint a dedicated consumer advocacy group that will champion consumer rights — other than those targeting prices of oil or electricity, or water. If a consumer has a problem with a commodity that was purchased, getting a defective product exchanged could be a challenge. Refunds are even harder to hack. The biggest problem was getting companies to be responsible for inferior-made products that wore out in shorter time than normal. Gen Z consumers, for example, will boycott brands that do not promote ethical and sustainable beliefs and practices. Some even go to the extent of espousing support for political movements, like the ongoing strife in Hong Kong.
Manila Water flags rate impact of SC ruling Business World 9th Oct 2019
MANILA WATER Company, Inc. warned of an “exponential” water rate increase by as much as P26.70 per cubic meter (cu.m.) if the Supreme Court does not reverse its decision to fine the Ayala-led company for its supposed failure to comply with the Clean Water Act (CWA). In a statement on Wednesday, the company said it had complied with its sewerage responsibilities under the law and should not be meted a penalty of as much as P921 million. It was among the entities that were fined by the court.
Assessing Philippine Foreign Policy Under Duterte: Current Realities and Future Outlook The Diplomat 8th Oct 2019
Last week, Philippine President Rodrigo Duterte paid his second visit to Russia in three years in what was trumpeted as another gain for his so-called “independent foreign policy” of cultivating non-traditional partners for the Southeast Asian state apart from its treaty ally the United States. But while the slogan has gotten a lot of traction in the past few years, the record of Duterte’s foreign policy approach itself is a much more mixed, with individual gains obscured by strategic challenges that could intensify in the coming years.
Banking
Lifting of bank secrecy ‘possible’ in the Senate Business World 15th Oct 2019
APPROVAL by early next year of the measure that will authorize government to look into bank accounts is “possible,” Senate President Vicente C. Sotto III said on Monday. The Department of Finance (DoF) and the Bangko Sentral ng Pilipinas (BSP) last week pushed anew for the easing of bank secrecy restrictions, a move that would help taxmen verify asset declarations of tax amnesty applicants as well as anti-corruption and money laundering investigations. BSP Gov. Benjamin E. Diokno had said he hopes the measure will be passed “within the year or the first quarter of next year.” Asked on this push, Mr. Sotto said in a mobile phone message that approval by early next year would be “possible in the Senate.”
Design of new P20 coin to be unveiled in December Rappler 14th Oct 2019
The Bangko Sentral ng Pilipinas (BSP) is still keeping the P20 coin design under wraps, but noted that it is on track to reveal the look of the new coin this December. The new coin will be in circulation in 2020, following findings that the P20 banknote suffers the most wear and tear.
BSP open to more RRR cuts – Diokno The Manila Times 9th Oct 2019
THE Bangko Sentral ng Pilipinas (BSP) may be finished with its easing cycle for this year, but monetary authorities are open to further trimming banks’ reserve requirement ratio (RRR), its chief said on Tuesday. “I think we will maintain the current rates. We are done [easing] for the time being,” BSP Governor Benjamin Diokno told reporters when asked if the central bank was considering further cuts to its key policy rates. The Bangko Sentral implemented a combined 75-basis-point (bps) interest rate cut in May, August and September this year that brought overnight borrowing, lending and deposit rates to 4.00 percent, 4.50 percent and 3.50 percent, respectively.
BSP to produce cards for National ID The Manila Times 8th Oct 2019
The Bangko Sentral ng Pilipinas (BSP) will produce 116 million blank cards to be used by the Philippine Statistics Authority (PSA) for the implementation of the National Identification System or PhilSys. This was revealed during the signing of memorandum of agreement between the BSP and the PSA held at the Philippine International Convention Center on Monday. In his message, BSP Governor Benjamin Diokno said the central bank will produce the cards over a period of three years for “Phil IDs” that are non-transferable cards to be issued to all Philippine citizens or resident aliens registered under PhilSys.
Agri-agra loans still below threshold in H1 The Manila Times 7th Oct 2019
LOANS provided by banks to the agriculture and agrarian reform sector grew by 15.26 percent in the first half of 2019, but fell short of the mandated threshold, Bangko Sentral ng Pilipinas (BSP) data showed over the weekend. The banking system set aside P726.14 billion as funds for the sector in January-June, a P96.16-billion increase from P629.98 billion in the same period in 2018. Total loanable funds rose by 14.92 percent to P5.29 trillion as of end-June from P4.60 trillion the previous year.
Customs
PHL makes new request to reduce Japan banana tariffs Business World 17th Oct 2019
Thr Philippines has reiterated its request to Japan to lower tariff imposed on Philippine bananas, the Agriculture department said. “I would like to request your support for the preferential tariff rate of 0% for Philippine bananas in Japan, which currently imposes 18% tariff during the winter season and 8% during the summer,” Agriculture Secretary William D. Dar was quoted as saying in a statement. The Philippines and Japan held a bilateral meetings on the matter on Oct. 16.
Customs collections up by 9.2% to P477.5B as of end-September inquirer.net 17th Oct 2019
Duties on imported rice helped boost the Bureau of Customs’ (BOC) tax take, which grew 12.4 percent to P58.9 billion in September. Preliminary data from the BOC’s financial service released on Wednesday showed that import duties and other taxes collected by the country’s second-biggest revenue agency (after the Bureau of Internal Revenue) climbed from P52.4 billion in September last year.
Philippines joining ASEAN Single Window platform by year-end philstar.com 14th Oct 2019
The Philippines is expected to join by the end of the year an integrated online platform which seeks to ease trade and customs processes within the Southeast Asian region, the Department of Finance (DOF) said over the weekend.
Higher rice tariffs now up to Cabinet Econ cluster Manila Bulletin Business 12th Oct 2019
The Department of Agriculture (DA) will no longer come up with a decision on the study it supposedly did to identify whether the Rice Tariffication Law or RA 11203 has indeed caused injury to the local rice sector. Agriculture Secretary William Dar said the result of the study would have served as the basis of the DA to impose safeguard measures versus the increasing amount of imported rice entering the country. If implemented, the safeguard measures would have also been the agency’s boldest move to address the declining price of palay.
Guidelines for foreign workers in the Philippines BusinessWorld 9th Oct 2019
The Department of Tourism (DoT) reported a 7.59% increase in tourist arrivals to the Philippines in the first quarter. This increase translates to around 2,204,564 foreign visitors from January to March 2019. However, not all foreign visitors travel around the country strictly for leisure. A segment of the tourist market also visits the country for business or employment. For instance, non-visa required nationals (such as Americans, Australians, Japanese, etc.) enjoy a 30-day visa waiver. Apart from tourism, they are allowed entry into the country for business-related activity or for the eventual assumption of duties related to work activities. With the influx of foreign workers, the government is seeking to tighten its rules on issuance of work permits. Setting stringent regulations in place, the Department of Labor and Employment (DoLE), the Bureau of Internal Revenue (BIR), the Department of Justice (DoJ), and the Bureau of Immigration (BI) circularized the Joint Guidelines on the issuance of employment permits to foreign nationals on May 1.
Philippine manufacturing output continues to decline in August Xinhua 4th Oct 2019
The Philippine Statistics Authority (PSA) reported on Friday that the performance of manufacturing production in the Philippines continued to decline in August, the eighth consecutive month during which the total manufacturing indices are on the decline. In its Monthly Integrated Survey of Selected Industries (MISSI), the PSA said year-on-year growth of the volume of production index (VoPI) declined by 9.3 percent while the value of production index (VaPI) contracted by 7.9 percent in August. The PSA said the weak performance of heavily weighted petroleum products, furniture and fixtures, transport equipment, electrical machinery, beverages, and miscellaneous manufactures accounted for the contraction in manufacturing.
Defense & Security
Southeast Asia’s 1st counterterrorism center finds home in Philippines Inquirer 11th Oct 2019
The first counterterrorism training center in Southeast Asia, which will be funded by the United States, will soon rise at Camp General Mariano Castañeda in Silang town, Cavite province. United States Ambassador to the Philippines Sung Kim and Philippine National Police Chief Oscar Albayalde led on Friday, Oct. 11, the groundbreaking ceremony for the Regional Counter Terrorism Training Center set to be constructed this year in the same site as that of the Philippine National Police Academy. The center will focus on strengthening US and Philippine commitment against terrorism.
Albayalde returns PDEA chief’s security team - Rene Acosta BusinessMirror 8th Oct 2019
NATIONAL Police chief General Oscar Albayalde has returned the 15-man police security of Philippine Drug Enforcement Agency Director General Aaron Aquino who were pulled out earlier by the PNP following PDEA’s report about so-called ninja cops, or those policemen who pilfer and recycle drugs seized in police operations. Albayalde said on Monday that he had ordered the director of the Police Regional Office 3 to restore Aquino’s full police security compliment in order to dispel beliefs that the PDEA director general’s supposed threats were coming from the PNP.
E-Payments
DBP taps PayMaya for e-payments, cashless disbursements for farmers Business World 15th Oct 2019
THE DEVELOPMENT Bank of the Philippines (DBP) has partnered with PayMaya Philippines, Inc. to boost financial inclusion among Filipino farmers. “Giving our farmers much-needed access to financial products to help uplift their livelihood is an important mission for DBP as part of our thrust toward financial inclusion for every Filipino. By employing digital means to deliver crucial financial services to them, we are able to help boost their productivity, increase their yields, improve their lives, and contribute to the growth of the economy as a whole,” DBP President and Chief Executive Officer Emmanuel G. Herbosa said in a statement. Under the program, payments for produce of farmers and disbursements from the bank’s partner local government units and organizations will be given to farmer beneficiaries through PayMaya ID cards. Partner organizations will also be provided with a cashless disbursement platform.
PayPal inaugurates PH operations site The Manila Times 6th Oct 2019
Online payment solutions PayPal officially inaugurated its operations site recently in Alabang, Muntilupa City, the company’s largest and first consolidated operations site in the country. PayPal has now hired over 700 people for this new office, with the intention of enlisting 1,000 more employees by the end of 2020. The company would look to fill key roles in customer support, voice and non-voice processes, and risk management to cater to English-speaking customers worldwide. Initially, the company aimed for 1,000 hires through 2021, but with growing needs for key business functions and a large pool of available local talent, this target has since been increased. The company’s decision to set up its global operations center in Alabang reinforces the country’s reputation as a hotbed for talent.
Economics
Debt service bill falls over 73% in Aug. BusinessWorld 22nd Oct 2019
THE government’s debt service bill fell by more than 73% in August, the Bureau of the Treasury (BTr) said. According to Treasury data, total debt payments declined 73.42% year-on-year to P31.58 billion. The August total was also much lower than the P92.46 billion worth of payments made in July. Interest payments accounted for 62.1% of total payments, or P19.61 billion, down 30.71% from a year earlier. Some 53.39% of interest payments or P10.47 billion went to foreign creditors. Amortization fell 86.78% year-on-year to P11.97 billion in August. Amortization on domestic debt was P8.783 billion, of which P8.679 billion was accounted for by the Treasury’s Bond Sinking Fund, while the remaining P3.187 billion went to foreign lenders.
Peso weakens on profit taking BusinessWorld 22nd Oct 2019
THE PESO slipped versus the dollar on Tuesday as the market pocketed gains from its recent rally. The local unit closed at P51.18 against the greenback on Tuesday, weaker by seven centavos from the P51.105-per-dollar close on Friday. The peso opened the session at P51.07 versus the dollar. Its weakest point for the day was at P51.245, while its intraday high was at P51.05 against the greenback. Dollars traded on Tuesday grew to $1.396 billion from $1.103 billion on Monday. A trader said that the peso’s weakness for the day was due to some flows.
State spending short despite Sept. boost BusinessWorld 22nd Oct 2019
STATE SPENDING rose by its fastest pace in almost a year and a half in September as the government rushed to make up for muted expenditures last semester, but even this boost was not able to ensure that the nine-month program was met, according to data the Bureau of the Treasury (BTr) released on Tuesday. And with revenue collections growing by double-digit pace and a smaller year-to-date fiscal gap, the government also fell short of its programmed deficit. SPENDING National government expenditures jumped by 39.01% to P415.1 billion last month from the P298.6 billion a year earlier, its best performance since the 42.7% increase recorded in April last year.
‘Risks to bop surplus rising, bear watching’ - Bianca Cuaresma BusinessMirror 21st Oct 2019
THE Philippines will continue to be a dollar-earning economy in the remaining months of the year, but risks to this surplus are slowly creeping up on the country’s foreign currency inflows. In a commentary about the country’s balance of payments (BoP), Security Bank economist Robert Dan Roces said the country’s BoP—the summary of all the Philippines’s transactions against the rest of the world— “will continue to see positive fundamental inflows” in the coming months. Roces said the sustained BoP surplus toward the end of the year will likely be supported by higher receipts in cash remittances from overseas Filipino workers with the approach of the holiday season. The Bangko Sentral ng Pilipinas (BSP) just recently reported that the country’s BoP surplus continued to do well in the first nine months of the year. For January to September, the BoP surplus was at about $5.56 billion in total. This is a stark reversal of the $5.1-billion deficit seen in the same nine-month period in 2018. However, a granular look at the data showed that the BoP surplus showed a big surplus drop on a monthly inflow basis—from $493 million in August down to $38 million in September.
Banana tariffs a sticking point in South Korea free trade deal | BusinessWorld Business World 21st Oct 2019
FREE TRADE Agreement (FTA) negotiations with South Korea are currently stalled because Seoul has not budged on key items sought by the Philippine side, particularly on opening up the market for bananas, Trade Secretary Ramon M. Lopez told reporters Thursday. “Basically, the items that we want and the kind of liberalization needed — hindi pa namin nakikita (we’re not seeing it yet),” he said. Mr. Lopez said that the Department of Trade and Industry’s (DTI) agenda is to improve banana exports to South Korea, and for an accelerated reduction of tariffs. To be decided are the timetable and size of tariff reduction.
Seoul’s push on tariff cuts stalls FTA talks with PHL - Elijah Felice Rosales BusinessMirror 21st Oct 2019
THE Philippines will no longer see its second bilateral free-trade agreement (FTA) materialize by November, as negotiators slow down talks after South Korea reportedly became more aggressive in pushing for tariff cuts. Trade Secretary Ramon M. Lopez said FTA talks with South Korea are becoming difficult lately, as its negotiators are seeking too many concessions from the Philippines. As such, it will be better to prolong the negotiations, passing on the November deadline in the process, than give in to the demands, he added. “Negotiations there [FTA with South Korea] are becoming difficult. South Korea is demanding too many concessions in exchange of what we are asking. The bottom line is we’re still inching and inching closer [to a compromise],” Lopez told the BusinessMirror.
ADB boosts Philippine lending | BusinessWorld Business World 21st Oct 2019
THE ASIAN DEVELOPMENT BANK (ADB) has increased its overall lending program to the country to a “record” level up to 2022, with the biggest focus this time on infrastructure projects, the regional lender announced in a press briefing on Thursday. ADB Country Director for the Philippines Kelly Bird said the bank “scaled up” its lending program for the country by investing at least $2.5-3 billion annually to total up to $12.1 billion from this year to 2022, a “historical increase” compared to $800-million annual amount the lender invested from 2011 to 2018, which totalled to $6.4 billion. Under the ADB’s Philippines Country Operations Business Plan 2020-2022, programmed lending totals $9.1 billion for those three years. The lion’s share or 59.5% of ADB’s lending pipeline will be for transportation projects such as railways, bridges, roads and elevated pedestrian walkways. This is followed by financing for public sector management with a 14% share. To compare, ADB’s financing for public sector management accounted for more than half or 53.1% of its lending program in 2011-2018, while transport financing accounted for just 7.7% in those eight years. “You will see not only have we scaled up our program, you can see that we’ve rebalanced it as well, focusing now on transportation, which accounts for 60% of our lending program, again, followed by public sector management,” Mr. Bird said in the briefing in Taguig City.
September balance of payments turns around from year-ago deficit | BusinessWorld Business World 21st Oct 2019
THE COUNTRY’S balance of payments (BoP) sustained a surplus for the third straight month — though the smallest amount in that period — turning around from a year-ago deficit, the Bangko Sentral ng Pilipinas (BSP) reported on Friday. Data released by the central bank on Friday showed the BoP position — which summarizes the country’s economic transactions with the rest of the world for a given period — at a $38-million surplus in September, compared to July’s $248 million and August’s $493 million and the year-ago $2.696-billion deficit. In a statement, the central bank attributed September’s BoP surplus to inflows from the “national government’s (NG) net foreign currency deposits and BSP’s income from its investments abroad” that “were offset… by outflows representing payments made by the NG on its foreign exchange obligations during the month in review.”
Asean trade in services lib to boost PHL semi-skilled labor - Cai Ordinario BusinessMirror 21st Oct 2019
LIBERALIZING trade in services in Southeast Asia will increase the demand for semi-skilled Filipino workers, according to a trade expert. In an Asian Development Blog published by the Asian Development Bank (ADB), Kakali Mukhopadhyay of the India-based Gokhale Institute of Politics and Economics said this is one of the benefits of trade liberalization. Mukhopadhyay said there is a strong argument to liberalize services in the Association of Southeast Asian Nations (Asean) since members generate 37 percent to 74 percent of their GDP from services.
Two more firms step towards IPO within the year | BusinessWorld Business World 21st Oct 2019
Cal-Comp Technology (Philippines), Inc. and Fruitas Holdings, Inc. have secured the approval of the Securities and Exchange Commission (SEC) for their initial public offering (IPO) next month. In a statement on Friday, SEC said Cal-Com is looking to raise P9.286 billion from the sale of new shares, while Fruitas Holdings is targeting P1.062 billion. Both have overallotment options consisting of secondary shares. “In its October 17 meeting, the Commission En Banc considered favorably the respective registration statements of Cal-Comp and Fruitas Holdings. The corresponding orders of registration and permits to sell securities will be issued upon the companies’ compliance with certain conditions,” the SEC said.
Finance officials to combat global slowdown - The Associated Press BusinessMirror 21st Oct 2019
WASHINGTON—Global finance officials wrapped up their fall meetings on Saturday with a pledge to “employ all appropriate tools” to combat the weakest global growth in a decade, but there was little evidence of progress in easing trade tensions, a major source of the slowdown. The policy-setting committee for the 189-nation International Monetary Fund (IMF) said in a closing statement that growth should accelerate next year. Officials acknowledged that a range of factors could undermine that forecast, including continued trade fights and increased geopolitical risks.
Exports watched as China’s economic expansion slows | BusinessWorld Business World 21st Oct 2019
CHINA’s slowing economic growth bears watching, especially for its implications on specific Philippine merchandise exports, experts said last weekend. In a phone interview, University of Asia and the Pacific economist George N. Manzano, a former tariff commissioner, said that China’s slowing growth — in the face of its trade war with the United States — will likely impact Philippine electronics exports which account for more than half the country’s total overseas sales of goods. Bulk of Philippine electronics exports goes to China, which uses them as components for final assembly. “We are not expecting the same vigorous growth in electronic products exports to China destined to the US market,” Mr. Manzano said, even as he added that “[f]ood product [exports to China] will increase and other raw materials destined for final consumption and not re-export.”
Peso to climb further on weak US economic data | BusinessWorld Business World 21st Oct 2019
THE PESO is expected to climb further this week on weak economic data out of the United States last week and as Brexit negotiations continue. The local unit closed at P51.295 versus the greenback on Friday, appreciating by 12 centavos from its P51.42-to-a-dollar close on Thursday. Week on week, it strengthened by 28 centavos from its P51.58 finish on Oct. 11. Dollars traded on Friday thinned to $1.036 billion from the $1.291 billion seen on Thursday. Traders attributed the peso’s rally to positive sentiments regarding the United Kingdom’s (UK) exit from the European Union (EU) and weak US data.
Long-term growth of 6.5% sustainable — Diokno philstar.com 19th Oct 2019
MANILA, Philippines — The Philippines is capable of sustaining a long-term economic growth of 6.5 percent amid the long list of structural reforms that started way back in the 1990s, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said. “The Philippines has come a long way from being the ‘sick man of Asia.’ In fact, the Philippines is now recognized globally as among the fastest growing and most resilient economies in the world that enjoys brighter prospects ahead,” he said. He said the country remains on a solid footing despite the threat of slowing economic growth looming larger than ever on the horizon as protectionist policies and geopolitical tensions continue to dominate the global growth narrative.
Philippines expands market access for rubber products BusinessMirror 19th Oct 2019
The country is working to expand market access for rubber and rubber-based products here and abroad, as it implements various initiatives to promote and develop the industry. The Philippines is stepping up investment promotions of rubber and its allied industries through business-matching missions and trade fairs/expositions organized and implemented locally or internationally by the Department of Trade and Industry-Export Marketing Bureau (DTI-EMB), Center for International Expositions and Missions, Bureau of Domestic Trade Promotion, Foreign Trade Services Corps and the Regional Operations Group.
BOP posts $38 million surplus in September philstar.com 19th Oct 2019
The Philippines continued to maintain a healthy external payments position in September, reflecting the country’s strong macroeconomic fundamentals and firm growth prospects, according to the Bangko Sentral ng Pilipinas (BSP). The country’s balance of payments (BOP) position posted a surplus for the third straight month at $38 million in September, reversing the $2.69 billion deficit recorded in the same month last year. “The country’s external position is reflective of an economy driven by solid macroeconomic fundamentals and firm growth prospects,” BSP Governor Benjamin Diokno said.
Hot money continues to flee Philippines philstar.com 18th Oct 2019
MANILA, Philippines — Speculative funds continued to exit the Philippines in September amid a spate of geopolitical issues which affected the flow of hot money globally. According to the Bangko Sentral ng Pilipinas (BSP), the country’s foreign portfolio investments yielded a net outflow of $231.71 million in September, pushing the net outflow for the nine-month period to $1.33 billion, nearly 17 times higher than the $74.67 million net outflow recorded in the same period last year. The September figure, however, was lower compared to the $440.3 million net outflow recorded in September last year.
DTI, business group back longer CITIRA transition philstar.com 18th Oct 2019
The Department of Trade and Industry (DTI) will continue to push for a longer transition period under Package 2 of the tax reform program even as the Department of Finance (DOF) stands pat on a five-year transition period. Philippine Chamber of Commerce and Industry (PCCI), the country’s largest business group, is also pushing for a longer transition period of 10 years for rationalization of tax perks under the Comprehensive Income Tax and Incentive Rationalization Act (CITIRA) bill.
ADB eyes record $12B in loans to PH in 4 years Read more: https://business.inquirer.net/281387/adb-eyes-record-12b-in-loans-to-ph-in-4-years#ixzz62joPLNOV Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook Inquirer 18th Oct 2019
In what an official dubbed as a “big-bang lending program,” the Asian Development Bank (ADB) on Thursday said it would extend to its host country, the Philippines, up to $12.1 billion in loans between 2019 and 2022 or a record $3 billion yearly. ADB country director for the Philippines Kelly Bird said in a press briefing that from only $6.4 billion in approved loans or $800 million yearly from 2011 to 2018, the Manila-based lender was “scaling up significantly” its financing support particularly for transport and agriculture projects. With up to $3 billion in annual financing, the Philippines would easily be among the top three recipients of ADB loans in the next three years, Bird said.
A strong business sector is key to inclusive growth – PRRD Manila Bulletin News 18th Oct 2019
At the 45th Philippine Business Conference of the Philippine Chamber of Commerce and Industries (PCCI), guest of honor President Rodrigo Duterte once again highlighted his advocacy to get rid of corruption while reminding the business community that following environmental rules and regulations is a priority under his administration.
Philippine Central Bank Governor Open to Another Reserve Ratio Cut This Year Bloomberg 17th Oct 2019
The Philippines central bank is probably done cutting its key interest rate this year, but remains open to further reducing the ratio of funds lenders must hold in reserve, Governor Benjamin Diokno said. “Most likely the rate cutting is done this year. But cutting of the reserve requirement ratio, maybe we’ll look at it,” Diokno said Thursday in an interview with Bloomberg Television’s Kathleen Hays in Washington.
Philippines Sees Around 6% Growth in 2019 on Fiscal Stimulus Bloomberg 17th Oct 2019
The Philippine economy will probably expand around 6% in 2019 as the government ramps up spending after a slower growth rate in the first half. “We’re hitting our spending targets now and we definitely will make a very good effort in catching up,” Finance Secretary Carlos Dominguez said in an interview with Bloomberg Television’s Kathleen Hays at the sidelines of the International Monetary Fund meetings in Washington.
DOF firm on 5-year CITIRA transition philstar.com 17th Oct 2019
The Department of Finance (DOF) stands firm on a five-year transition period for the proposed Corporate Income Tax and Incentives Rationalization Act (CITIRA) despite the Department of Trade and Industry’s call for a longer transition. In an interview, Finance Undersecretary Antonette Tionko said concerned agencies, including the DOF, DTI and the Philippine Economic Zone Authority (PEZA) are set to review and revise some provisions in the proposed reforms to the Philippines’ tax incentive system. “Yes, we will work on refinements, because as it is, there’s still stuff that needs to be improved,” Tionko told reporters.
PH to gain huge economic prize from inclusive projects Manila Bulletin Business 17th Oct 2019
United Nations Development Program (UNDP), the UN’s global development network, said there’s a huge “economic prize” when businesses prioritize investments that will help make their countries better and socially inclusive. For the Philippines, the yield could be as high as $82 billion over the next 10 years. In its soon-to-be-released ‘“Better Business, Better World: Philippines (BBBW)” report, UNDP said there is an economic prize worth $82 billion across the Philippines by 2030, alongside large environmental and social benefits, that can be achieved through the shift to sustainable business models.
Cooperatives in taxmen’s sights Business World 15th Oct 2019
THE GOVERNMENT has now turned its sights on nearly 30,000 registered cooperatives as it moves to plug tax leaks, the Finance department (DoF) said in a press release on Monday. According to the news statement, Finance Secretary Carlos G. Dominguez III ordered the Bureau of Internal Revenue (BIR) to step up its audit of these organizations “to weed out those that have abused the tax incentives granted to them under the law,” after BIR Deputy Commissioner Arnel SD. Guballa reported in a recent DoF Executive Committee meeting that the bureau has on record 29,623 registered cooperatives that paid a total of P2.84 billion in taxes last year, 5.4% less than the P3 billion they paid in 2017. The BIR said it has sent audit notices to 474 cooperatives, so far, resulting in tax assessments amounting to P1.62 billion. The bureau has so far collected P250.35 million of that amount. Mr. Dominguez told BIR brass in the same meeting led by Commissioner Caesar R. Dulay to check if these groups “are true to their mandate of promoting self-reliance and social change, and which ones have apparently organized themselves into cooperatives as a ruse to exploit the tax benefits granted to such organizations.”
Planned higher public float requirement to impact half of listed firms Business World 15th Oct 2019
NEARLY HALF of publicly listed companies are expected to be affected by the doubling of the minimum public float requirement planned by the Securities and Exchange Commission (SEC), the bourse operator has said. Ramon S. Monzon, president and chief executive officer of the Philippine Stock Exchange, Inc. (PSE), told reporters last week that at least 102 of the 268 listed firms will have to adjust their minimum public ownership (MPO) once the new rules come into effect. “We have been pushing for this as an exchange… Ngayon naglabas sila 25% [Now the SEC has bared its plan to raise the MPO to 25%]. That’s very good for us,” he said. Commissioner Ephyro Luis B. Amatong had said that the SEC is looking at setting the minimum public float at 20-25%, which listed companies must comply with within a five-year period, from 10% currently.
BSP boosts lending transparency measures Business World 15th Oct 2019
THE BANGKO SENTRAL ng Pilipinas has boosted its measures towards lending transparency, now mandating non-bank financial players to ensure consumers are informed about their services via various modes of communication, such as social media. BSP Circular No. 1052 signed by BSP Deputy Governor Maria Almasara Cyd N. Tuaño-Amador on Oct. 2 extends the lending disclosure requirement under Republic Act. No. 3765 or the “Truth in Lending Act” (TLA) to other financial firms like pawnshops, non-bank financial institutions, as well as banks or non-banks operating as credit card issuers. Previously, the requirement only covered banks, quasi-banks and non-stock savings and loan associations. The circular also expanded the mode of disclosing relevant information required under the law.
ECCP business summit hoping to tackle PHL’s ease of doing business issues Business World 15th Oct 2019
THE European Chamber of Commerce of the Philippines (ECCP) said its upcoming European-Philippine Business Summit on Oct. 24 hopes to highlight the process of making the business environment friendlier to European firms interested in investing in the Philippines. “We will also delve on the economic performance of the country in recent years and how European-Philippine trade and investments have played a significant role in economic development,” ECCP president and CEO of Republic Cement Services, Inc. Nabil Francis said in a statement. The chamber said the summit hopes to highlight business opportunities and policy recommendations for human capital development, health care, infrastructure and transportation, energy and the environment. The ECCP said it will also release its 2019 Advocacy Papers which include policy recommendations to help level the playing field and improve ease of doing business. Invited guests from the government include Labor Secretary Silvestre H. Bello III, Transportation Secretary Arthur P. Tugade, and Environment Secretary Roy A. Cimatu.
SEC orders 12 more lending apps to stop operations Manila Bulletin Business 14th Oct 2019
The Securities and Exchange Commission (SEC) has issued a cease and desist order against another batch of 12 online lending operators for their failure to secure the necessary licenses. The Commission En Banc ordered A&V Lending Mobile, A&V Lending Investor, A.V. Lending Corporation, Cashaku, Cashaso, CashEnergy, Happy Loan, Peso Pagasa, Vito Lending Corp., Phily Kredit, Rainbow-Cash and Rainbowcash.Ph Lending Corp.to stop from further engaging in lending activities. The SEC order covers the owners and operators of the online lending applications, their agents, representatives and promoters, the owners of their hosting sites and all persons acting for and on their behalf.
Draft Code of Corporate Governance released philstar.com 14th Oct 2019
The Securities and Exchange Commission (SEC) has issued a draft Code of Corporate Governance for public companies and registered issuers. The code will cover companies that are not listed in the stock market but are public companies. The SEC defines a public company as that with assets of at least P50 million and having two hundred or more shareholders holding at least one hundred shares each of equity securities. It also covers registered issuers which the SEC defines as a company that issues proprietary and non-proprietary shares, sells equity securities to the public that are not listed and sells debt securities to the public that are required to be registered with the SEC.
BSP boosts watch on big banks Business World 13th Oct 2019
THE BANGKO SENTRAL ng Pilipinas (BSP) has enhanced its framework for watching banks deemed too big to fail, the monetary authority said in a press release on Saturday. The BSP said the approved “enhancements” to its framework for watching domestic systemically important banks (D-SIBs) are designed to better determine how important a bank is to the health of the financial system. The new features which the BSP’s Monetary Board has approved include adoption of threshold levels and other revisions to weights of indicators and their composition, as well as calibration of additional capital requirement. These changes are applied both on a consolidated basis on all universal and commercial banks, as well as their subsidiary banks and quasi banks, as well as branches of foreign lenders.
Net FDI inflows drop to $543M in July The Manila Times 12th Oct 2019
NET inflows of foreign direct investments (FDI) fell by double digits to $543 million in July from the amount posted a year ago, according to the Bangko Sentral ng Pilipinas (BSP). Central bank data released on Thursday night showed that the latest figure was a 41.4-percent decrease from $926 million in the same month last year. The July amount dragged the year-to-date tally to $4.11 billion, down 39.1 percent from the figure posted in the first seven months of 2018. Equity capital investments recorded the biggest drop, plunging by 62.2 percent to $99 million from $261 million.
Philippines to miss 2019 economic growth target Rappler 11th Oct 2019
The gross domestic product (GDP) growth of the Philippines will only likely hit 5.8% in 2019, according to the World Bank. On Thursday, October 10, the multilateral lender said that the country will not be able to cling on to the lower end of the 6% to 7% growth band target, as export growth and manufacturing activity in East Asia and the Pacific continue to slump. "Weakening global demand, including from China, and heightened uncertainty around ongoing US-China trade tensions led to a decline in exports and investment growth, testing the resilience of the region," according to Weathering Growing Risks, the October 2019 edition of the World Bank's East Asia and Pacific Economic Update.
Philippines: High impact projects and critical reforms key to regaining higher growth Modern Diplomacy 11th Oct 2019
Amidst rising global uncertainties, the Philippine economy remains strong and is projected to grow 5.8 percent this year and 6.0 percent in 2020 and 2021, according to the Philippines Economic Update, released today by the World Bank. Weakening global economy, rising protectionism, the United States – China trade spat, and the slowdown in public investments in the Philippines in the first half of the year have tempered the country’s growth prospects. Nevertheless, strong private consumption – due to lower inflation, higher employment rates, robust remittances, and rising wages – and a recovery in public investment spending will keep the economy buoyant. Also, the services sector will drive growth fueled by the continuing expansion of financial services and tourism.
Divesify exports call sounded as growth slows Diversify exports call sounded as growth slows 11th Oct 2019
EXPERTS on Thursday reiterated the need to diversify the country’s exports as the Philippine Statistics Authority (PSA) reported a slowdown in export growth to 0.6 percent in August, from 4 percent in the same period last year. The experts’ call focused as well on the need for Congress to fast-track legislative efforts to implement necessary business reforms that will resolve problems that hamper the ability of exporters to diversify. The National Economic and Development Authority (Neda) had long been pushing for the passage of proposed amendments to the Foreign Investment Act, Public Serve Act and Trade Liberalization Act. Local economists, including former Socioeconomic Planning Secretary Romulo V. Neri, said the government should look to its competitive advantage, particularly in business-process outsourcing (BPO) and tourism.
Service quality cited as bright spot in PHL governance — NEDA Business World 10th Oct 2019
THE Philippines regressed in three of six categories in the World Governance Indicators, with “Government Effectiveness” the standout area of improvement, a performance which Socioeconomic Planning Secretary Ernesto M. Pernia attributed to the streamlining of government services. The Government Effectiveness score jumped to the 55th percentile (55.29) from 51.92 two years earlier. However, the performance failed to meet the target of 59 set out in the Philippine Development Plan 2017-2022. Mr. Pernia also highlighted the Philippines’ performance in the WGI’s “Regulatory Quality” category to the 56th percentile (56.73) in 2018 from 55.77 in 2017, which he said beat the target of 54 set in the PDP. In a statement released by the National Economic Development Authority (NEDA), he said the improved standing reflects upgrades to the government’s internal efficiency in the government. The NEDA statement made no mention of the Philippines’ worst category, “Political Stability and Absence of Violence,” where the country’s percentile standing actually improved to 12.86 in 2018, from 11.43 two years earlier. WGI defines the category as measuring “perceptions of the likelihood of political instability and/or politically-motivated violence, including terrorism.”
THE LONG AND WINDING ROAD TO ‘A’ - Jovee Marie de la Cruz BusinessMirror 10th Oct 2019
THE “Road to A,” a campaign launched by the Duterte administration this year, has given the House of Representatives more impetus to immediately pass measures under the Comprehensive Tax Reform Program (CTRP). The government declared that it will shoot for an “A” credit rating in May, right after debt watcher Standard & Poor’s (S&P) upgraded the Philippines’s credit rating to “BBB+.” This is because a good credit rating will reduce the cost of borrowing in the international capital markets for the Philippines and will promote the country as a viable investment destination. Efforts are now under way in Congress to help boost the Philippines’s chances of getting another credit rating upgrade from international debt watchers. The legislative blueprint to make the economy more robust and the taxation system fairer has already been laid out and has advanced in the House of Representatives.
WB: PHL likely to miss growth targets Business World 10th Oct 2019
THE WORLD BANK has slashed its gross domestic product (GDP) growth forecasts for the Philippines this year up to 2021 to below the government’s target, amid “intensified” risks from an escalating Sino-US trade war and “a slow recovery” of government spending in the wake of a three-and-a-half month delay in national budget enactment that weighed on first-half expansion. The East Asia and Pacific Economic Update, titled “Weathering Growing Risks”, which the multilateral lender released on Thursday bared a Philippine GDP growth forecast of 5.8% this year against the already-downgraded 6.4% forecast it gave last June and the official 6-7% target for 2019.
Faster CIT reduction to expand budget gap The Manila Times 9th Oct 2019
A shorter time frame for the proposed reduction in the corporate income tax (CIT) rate could widen the Philippines’ budget deficit, Finance Secretary Carlos Dominguez 3rd warned on Tuesday. During the 14th Philippine Forum of The Asset publication in Taguig City, Dominguez called the time frame a “long period,” and said “[i]f we drop the [CIT rate] too quickly, we are going to balloon our deficit, and ballooning our deficit is going to probably mean a credit downgrade.”
Philippines drops 8 notches in global competitiveness ranking philstar.com 9th Oct 2019
The Philippines slipped eight places to rank 64th out of 141 countries in the latest Global Competitiveness Report of the World Economic Forum (WEF) from 56th place last year amid lower rankings in the information and communication technology (ICT) adoption and macroeconomic stability pillars. The WEF report released by local partner institute Makati Business Club (MBC) yesterday showed the Philippines’ overall ranking declined as the country’s score dropped to 61.9 this year from 62.1 last year. Within Southeast Asia, the Philippines’ ranking slid to sixth out of nine countries, down a notch from fifth spot last year.
Austal, Cerberus line up bid for PHL shipyard Business World 9th Oct 2019
A CONSORTIUM of Australian shipbuilder Austal Ltd. and US private equity firm Cerberus Capital Management LP could make an offer in the coming weeks for Hanjin Heavy Industries & Construction Co.’s cash-strapped shipyard in the Philippines. The companies, which have until Oct. 31 to submit a bid, are in exclusive talks with creditors and finishing up due diligence, court-appointed receiver Rosario S. Bernaldo said in a telephone interview on Tuesday. The shipyard in Zambales province to the northwest of Manila is the country’s largest, covering 300 hectares.
Trade war tones down exports growth outlook - Elijah Felice Rosales BusinessMirror 8th Oct 2019
THE government and exporters are in agreement export figures this year will end in the black, but the growth rate could settle between 2 percent and 3 percent due to the global slowdown in demand for Philippine-made items. Exporters are historically upbeat that orders will pick up starting October, as clients begin to buy in larger volumes to beef up their stocks in time for the Christmas season.
Dollar reserves at record high in September - Cai Ordinario BusinessMirror 8th Oct 2019
THE country’s dollar reserves posted a new record high in September and again breached the $86-billion mark, according to preliminary data released by the Bangko Sentral ng Pilipinas (BSP) on Monday. BSP data showed that the country’s gross international reserves (GIR) rose to $86.16 billion in September, $130 million higher than the $86.03 billion recorded in end-August. “The increase in the GIR level month-on-month reflects the national government’s [NG] foreign-currency deposits and BSP’s income from its investments abroad,” BSP said.
Fitch Solutions sees PHL loan growth rebounding on BSP rate cuts, inflation Business World 7th Oct 2019
FITCH SOLUTIONS expects banks’ loans to grow faster this year following the Bangko Sentral ng Pilipinas’ (BSP) move to ease policy settings and on the back of consumer and corporate borrowings. In a report released on Monday, the think tank said it sees banks’ credit growing by 13% this year and 15% in 2020, higher than its previous forecast of 11% and 12% for 2019 and 2020, respectively, published in 2018. These compare to the actual 14.6% pace recorded in 2018. Fitch Solutions said it sees loan growth rebounding after slower demand for loans seen earlier this year due to a weaker peso and the BSP’s successive rate hikes in 2018 triggered by record-high inflation, which hurt household confidence. “At the same time, growing external demand weakness in recent quarters has also begun weighing on order activity. The resultant impact of higher borrowing rates and softening orders has contributed to weaker credit demand and thus slower credit supply growth, with loan growth coming in at 11.7% y-o-y in July 2019,” the think tank said.
DoF: Oct. inflation likely still below 1% Business World 6th Oct 2019
OCTOBER INFLATION will likely still clock in below one percent, the Department of Finance (DoF) said in an e-mail to journalists two days after the government reported September inflation that was the weakest in more than three years, slowing from 2018’s multi-year highs. The Philippine Statistics Authority (PSA) reported on Friday that headline inflation clocked in at 0.9%, matching the pace in May 2016 and the slowest clip since the 0.7% recorded in April that same year. That brought year-to-date inflation to 2.8%, compared to the central bank’s downgraded 2.5% forecast average and 2-4% target range for full-year 2019.
Bond listings could set new record this year Business World 6th Oct 2019
BOND LISTINGS at the fixed-income exchange could hit a record P300 billion by yearend, fueled by relaxed rules for bank bond issuance implemented last year as well as attractive interest rates. “We may have a chance to probably reach around P300 billion. Right now we’re at a record because we had P256 (billion) last year,” Philippine Dealing and Exchange Corp. (PDEx) President and Chief Operating Officer Antonino A. Nakpil told reporters during the listing ceremony for Ayala Land, Inc. (ALI)’s P3-billion fixed-rate bonds last week.
Peso climbs further as inflation eases Business World 6th Oct 2019
THE PESO extended its climb on Friday amid slower inflation and bets of another rate cut in the United States. The local unit ended at P51.73 against the greenback on Friday, gaining 8.5 centavos from its P51.815-to-a-dollar close on Thursday. Week on week, it climbed 14 centavos from the P51.875 close on Sept. 27. The peso opened at P51.70 versus the dollar. It weakened to as low as P51.77 during the session, while its intraday best was at P51.65 against the greenback.
Philippines looks for ways to boost the number of women in jobs Reuters 5th Oct 2019
Women in jobs or seeking work in the Philippines made up just under half the working-age population over the last two decades, a study commissioned by the government showed, held back by social expectations that they will care for homes and children. The Philippine rate of 46% in 2018 pushed its female labor participation below regional peers, such as Indonesia at 52%, Malaysia at 51% and Myanmar with 48%, highlighting the need to fight workplace stereotyping and discrimination. Such a low rate could eventually hurt economic development and hold back the progress of women’s rights in the Philippines.
Energy
DOF welcomes new mining tax proposal philstar.com 21st Oct 2019
The Department of Finance (DOF) has welcomed the proposal of Albay Rep. and House ways and means committee chairman Joey Salceda to impose a new tax scheme for the mining sector, which would be used to create a sovereign wealth fund for the benefit of future generations. In an interview, Finance Secretary Carlos Dominguez said he supports the proposed creation of the National Resource Trust Fund, a sovereign wealth fund which would be used for development projects in communities affected by mining activities.
ERC tells 100 DUs, co-ops to show proof of CSP - Lenie Lectura BusinessMirror 21st Oct 2019
The Energy Regulatory Commission (ERC) directed more than 100 distribution utilities (DUs) and electric cooperatives (ECs) to submit a certification from the Department of Energy (DOE) attesting to their compliance with the government’s competitive selection process (CSP) rules. ERC Spokesman Rexie Digal said the commission’s directive was sent to a total of 117 DUs/ECs. One of ERC orders directed Pangasinan III Electric Cooperative, Inc. (Panelco) and SMC Consolidated Power Corp. “to comply with the pertinent rules and regulations of the DOE relative to the CSP requirements pursuant to the Supreme Court in the ABP [Alyansa Para Sa Bagong Pilipinas Inc.] case, and to submit the necessary DOE Certification attesting the parties’ compliance thereto.”
Oil price rollbacks viewed as within the rules Business World 14th Oct 2019
THE fuel pricing practices of oil companies seem to be within the bounds of the rules, economists said, casting doubt on the Department of Energy’s investigation into the extent of the industry’s latest fuel price rollback. The DoE on Oct. 1 asked oil companies to present the basis for their price reductions, which it claims should have been larger. The rollbacks followed a few days of price volatility after the drone attacks last month on the Saudi crude production facilities. Global prices settled back down after production was not disrupted as much as initially feared. “I have the impression that this is an accepted way to price,” University of Asia and the Pacific (UA&P) School of Economics associate professor Peter Lee U said in an Oct. 8 telephone interview. “But, if (the computations are) different, well, technically they are free. They’re only required by law to inform the DoE and they have.” Some oil companies on Sept. 30 cut prices by P1.45 per liter for gasoline, P0.60 for diesel, and P1.00 for kerosene. The DoE said prices could have been slashed further by P0.07 per liter for gasoline and by P0.16 per liter for diesel and kerosene.
Biomass now open to 100% foreign stake The Manila Times 14th Oct 2019
FOREIGN companies can now fully own and operate biomass power plants in the Philippines under a recently signed policy from the Department of Energy (DoE). The DoE’s newly-released omnibus guidelines for the award and administration of renewable energy (RE) contracts is intended for fast-tracking the development of RE sources such as solar, wind, hydro, biomass, geothermal and ocean energy, including hybrid systems. It also eliminates hindrances in harnessing RE sources such as application and permitting processes.
Biomass dev’t pushed to foreign investors Business World 13th Oct 2019
THE DEPARTMENT of Energy (DoE) has opened biomass energy development to full foreign ownership to encourage growth of the sector that has lured only a few investors even after the feed-in tariff (FiT) scheme gave them a fixed, subsidized rate for their power output. Marissa P. Cerezo, a director at the department’s Renewable Energy Management Bureau (REMB), said the DoE was working on immediate publication of the “omnibus guidelines” for the award and administration of renewable energy contracts, signed earlier this month by Energy Secretary Alfonso G. Cusi.
Shell to power Philippines refinery with solar, storage and natural gas pv magazine International 11th Oct 2019
Shell, identified as one of worst corporate offenders in terms of greenhouse gas emissions, will use solar power and storage – plus methane-emitting natural gas – to power oil refining operations in the country. As Extinction Rebellion protesters start to have an impact around the world, fossil fuel giant Royal Dutch Shell has said it is heeding the call from civil society to work towards the low-emission aims enshrined in the Paris Agreement. Shell’s Philippine subsidiary Pilipinas Shell Petroleum Corporation has touted the start of work on an integrated energy system to harness solar energy, natural gas and a 3 MWh battery storage system to power its 110,000 barrel-per-day oil refinery in Tabangao, Batangas City. The partly renewable energy project is expected to generate 2.4 GWh per year, enough to power 850 homes or offset 8,760 tons of carbon dioxide per year from refinery operations, according to Pilipinas Shell. Any excess energy will be exported to the adjacent Luzon grid.
SC orders ERC to review approval of Meralco’s unbundled rates news.abs-cbn.com 11th Oct 2019
n a bid to reduce electricity costs, the Supreme Court has ordered the Energy Regulatory Commission (ERC) to review its approval of Meralco's valuation of its regulatory asset base and determine whether expenses not directly related to the distribution utility can be passed on to consumers. In its en banc session Tuesday, the high court voided ERC’s approval of Meralco’s unbundled rates for violating its statutory mandate to provide electricity to consumers “in the least cost manner” after it found that the commission ignored the findings of the Commission on Audit (COA).
Malampaya’s finite bounty spurs hectic race for more renewables, other oil-gas fields - Lenie Lectura BusinessMirror 10th Oct 2019
HE Philippines continues to be confronted with energy supply challenges. But one that has to be dealt with immediately is the urgency to find and develop new energy sources to fill the void that will be left in the wake of the Malampaya gas field depletion. If no viable alternatives to the gas field—supplying more than 40 percent of Luzon’s power requirement—are presented anytime soon, it is possible that rotational brownouts may hit Luzon again. “Unless we find new indigenous natural gas deposits or develop the capacity to import and process natural gas, we stand to lose a tremendous amount of energy-generation capacity. This will compromise our energy supply stability in the coming decades,” Senate energy committee head Sherwin Gatchalian said. The latest discovery announced by the Department of Energy (DOE) is the Alegria oil field, which is found to have commercial quantities of natural gas and oil resources. However, it could only power up a 60-megawatt (MW) gas plant and produce only 180 to 360 barrels of oil per day.
NIA, FG Hydro team up for Aya Dam project The Manila Times 9th Oct 2019
THE National Irrigation Administration (NIA) and First Gen Hydro Power Corp. (FG Hydro) on Tuesday sealed their partnership for the development of a hydroelectric power project at the Aya Dam in Pantabangan, Nueva Ecija. The signing of the memorandum of agreement between NIA Administrator Ricardo Visaya and FG Hydro Vice President Dennis Michael Gonzales was held at the NIA central office in Quezon City. In a statement, NIA said the deal would complement with the existing Pantabangan-Masiway hydroeletric power plant through an acceptable scheme under ex isting laws, such as Republic Act (RA) 9513 or the “Renewable Energy Act of 2008,” among others.
China sweetens joint energy exploration deal BusinessMirror 7th Oct 2019
HINA has expanded its offer in its proposed oil and gas exploration deal with the country in the West Philippine Sea (WPS), according to President Duterte. Aside from giving Philippines a bigger share in the resources, Duterte said the Chinese government said it is now willing to shoulder additional expenses in the deal. “Now there is something new [in the negotiation]—China is proposing 60-40 [resource sharing], where 60 [percent] will be our [share]. They will also provide for the equipment and the [operation] of the rig,” Duterte disclosed during a forum in Russia on Saturday.
More power to consumers - Lenie Lectura BusinessMirror 6th Oct 2019
THE recently concluded auction of power supply contracts, via Competitive Selection Process (CSP), between the Manila Electric Co. (Meralco) and power generation companies (gencos) has changed the landscape of a bidding process, ultimately giving consumers priority over profits. “The winners for this activity are actually the Meralco consumers,” commented Department of Energy (DOE) Director Mario Marasigan.The competitive bidding, according to one of the winning bidders, was “a well- run process.” “This is an entirely different mindset, it’s customer first. It forces us to think more creatively to use our portfolio, to use renewables,” said Phinma Energy Corp. president Eric Francia. Meralco customers are expected to save P0.28 per kilowatt hour (kWh) or P9.46 billion annually for 10 years from the successful CSP, involving the supply of 1,200-MW brownfield capacity.
Financial Services
PHL to launch ‘new generation’ P20-coin in December - Bianca Cuaresma BusinessMirror 15th Oct 2019
THE Bangko Sentral ng Pilipinas (BSP) formally announced that the 20-piso coin will start circulating in the economy after its ceremonial launch in December. In a statement released on Monday, the Central Bank said once circulated, the new 20-piso coin shall co-exist with the 20-piso banknotes as legal tender. The 20-piso banknote shall be gradually removed from circulation through “natural attrition.” The BSP also clarified that official photographs and specifications of the 20-piso New Generation Currency (NGC) coin shall be presented by BSP Governor Benjamin E. Diokno during its launch.
No need to insure e-money yet – PDIC Manila Bulletin Business 21st Oct 2019
Philippine Deposit Insurance Corp. (PDIC) President Roberto B. Tan said there seems to be no need – at least for now – to craft new regulations that would cover the insurance of quasi-deposits such as electronic money (e-money). Tan said they have no timetable when they will recommend the handling or how to deal with quasi-deposits but at this point, there is no urgent requirement to consider quasi-deposits as regular bank account deposits which are insured by the PDIC. Under the PDIC Charter, bank deposits are insured up to a maximum ₱500,000 per depositor per bank. Besides, additional insurance coverage could mean increasing PDIC’s Deposit Insurance Fund (DIF).
Government urged to come up with CITIRA safety nets philstar.com 11th Oct 2019
The proposed Comprehensive Income Tax and Incentives Reform Act (CITIRA) should come with safeguards to better prepare for unintended consequences of the measure, the Ateneo School of Government said. Ateneo School of Government dean Ronald Mendoza said during the roundtable discussion organized by the Philippine Economic Zone Authority (PEZA) that while the rationale behind the push for CITIRA is clear, there are also issues that need to be clarified in the proposed measure. CITIRA seeks to gradually reduce the corporate income tax (CIT) rate, considered to be among the highest in Southeast Asia, to 20 percent from 30 percent, as well as rationalize incentives given to investors. Part of the proposed changes in the incentives system is the shift from payment of five percent tax on gross income earned by PEZA locators to CIT.
Philippines launches location incentive, co-production fund Screen Daily 11th Oct 2019
Under the banner of FilmPhilippines, the Film Location Incentive Program (FLIP) will offer financial support to both international productions and co-productions with Filipino producers who spend at least $154,000 (PHP8m) in the Philippines for production and post-production. Productions that can apply for the incentive include feature films, documentaries, animation, short films, TV series and web series. They will need to have a registered Philippine line producer on board.
Food & Agriculture
Farm dep’t maintains 2% growth goal despite ASF impact as RCEF kicks in BusinessWorld 22nd Oct 2019
THE DEPARTMENT of Agriculture (DA) has maintained its 2019 growth target for the agriculture sector at two percent, as it launches operations using the Rice Competitiveness Enhancement Fund (RCEF) seven months after Republic Act No. 11203, which liberalized rice importation, took effect. “We will maintain that target. Itong pagkaumpisa nag-implementasyon ng (The start of the implementation of) RCEF will be a big factor, reckoning from August 2019 to end of July 2020,” Agriculture Secretary William D. Dar said in a briefing in Quezon City on Tuesday. “Ako positive pa din ang aking pananaw (I remain optimistic that) rice will still be the driving factor kasi crops sector naman ang pinakamalaki (because the crops sector is the biggest driver of agriculture sector growth),” he said after the briefing, adding that his projection accounts for other factors like impact of African Swine Fever (ASF)
Rice farmers see ample supply even with safeguard measures BusinessWorld 22nd Oct 2019
RICE FARMERS said the market will be well-supplied with the staple even if the government proceeds with safeguard duties that discourage further imports, though they did not say how prices will be affected. “There will be no shortage of rice even if imports are temporarily stopped by the safeguard duties. We have more than enough rice, and the main harvest season has not yet ended,” Federation of Free Farmers National Manager Raul Q. Montemayor said in a statement. He said that domestic supply is currently sufficient without imports. The Philippine Statistics Authority (PSA) estimates that rice inventory in September was 57.9% higher year-on-year. Rice imports are also estimated to have totaled 2.4 million metric tons (MMT) between March, when imports were liberalized, and August, well above the 7% import requirement needed to fill the domestic production gap, equivalent to 1.5 MMT to 2 MMT.
Rice tariffs top P15 billion, exceed RCEF requirement BusinessWorld 22nd Oct 2019
THE Department of Finance (DoF) said rice import tariffs have totaled P15 billion, ensuring a surplus after the Rice Competitiveness Enhancement Fund (RCEF) is provided P10 billion by law, which the government could deploy for aid to farmers. The import tariff estimate was contained in a speech by Bangko Sentral ng Pilipinas (BSP) Monetary Board Member Bruce J. Tolentino. “It’s already five billion pesos over and well above the P10 billion that’s supposed to be allocated for RCEF. The Cabinet is discussing now whether or not to use the extra (funds) for grants to those farmers who are badly affected by a change in the economic picture,” he said. With the rice prices falling due to the Rice Tariffication Law and oil prices stable, Mr. Tolentino said that he sees inflation in October to be little changed or even lower than the 0.9% reading for September.
‘Rice imports safeguard duty won’t spur inflation’ - Jasper Y. Arcalas BusinessMirror 21st Oct 2019
THE imposition of a safeguard duty on rice imports to protect rice farmers from the detrimental effects of an import surge is not inflationary, a former ranking agriculture official said at the weekend, disputing the claim of economic managers. Inflation won’t be an issue since the volume of domestic stocks is already high due to the influx of imported rice after the rice trade liberalization law took effect earlier this year, former Agriculture Undersecretary Segfredo R. Serrano explained. The National Economic and Development Authority (Neda) had harped on the inflationary impact, which the DA cited as basis for scuttling the safeguard duty investigation.
Compensation for culled hogs raised to P5,000 Business World 18th Oct 2019
PRESIDENT Rodrigo R. Duterte has approved a proposal to increase financial assistance for backyard hog raisers whose pigs were culled due to an outbreak of African Swine Fever (ASF), raising compensation to P5,000 per head from P3,000. According to the Department of Agriculture’s (DA) Swine Bulletin No. 11, the increased payouts were approved during a Cabinet meeting on Oct. 11.
DILG to LGU: Lift ban on processed meats - Jasper Y. Arcalas BusinessMirror 15th Oct 2019
THE Department of the Interior and Local Government (DILG) has issued an order, its chief said, excluding processed meat products from the bans imposed by local government units (LGUs) as preventive measures against African swine fever (ASF). Interior Secretary Eduardo M. Año said he has issued an order directing all the LGUs to exempt Food and Drug Administration (FDA)-certified processed meat products from their import bans. Año’s statement comes amid pronouncements of the Philippine Association of Meat Processors Inc. (Pampi) that their group may incur P50 billion to P60 billion in losses due to import bans imposed by provincial and local governments.
Amid Manila Bay rehab, what’s behind fish kill, mussel death? - Jonathan L. Mayuga BusinessMirror 15th Oct 2019
THE Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya) on Monday called on authorities to look into the mystery behind the fish kill in Las Piñas and Parañaque, as well as the one afflicting tons of mussel and oyster in Bacoor, Cavite. According to Pamalakaya, at least 2 tons of fish—sapsap, salaysay and salinyasi—were recently found floating in Manila Bay in Las Piñas and Parañaque. Aside from fish, shellfish species were also affected by what the group suspects was caused by water pollution. Ironically, the Department of Environment and Natural Resources (DENR) has been heralding improved water quality in Manila Bay several months after it launched the Battle for Manila Bay early this year.
Banana growers seek halt to demolition of biosecurity areas - Jasper Y. Arcalas BusinessMirror 15th Oct 2019
THE Pilipino Banana Growers and Exporters Association (PBGEA) has condemned the attempts of the provincial government of Davao del Norte to demolish biosecurity facilities against fusarium wilt in a banana plantation as it could harm the country’s billion-dollar export product. In a statement on Monday, PBGEA appealed to the government for “cooler heads” to intervene in the situation it described as a “coercion by local politicians who may be unaware of the danger their actions bear on the future of the country’s top agricultural export earner.”
Agricultural trade deficit narrows to $1.62 billion Business World 15th Oct 2019
THE TRADE DEFICIT in agricultural commodities narrowed in the second quarter to $1.62 billion, driven by increased exports and a decline in imports, the Philippine Statistics Authority (PSA) said. The PSA said Monday that outbound shipments of agricultural goods totaled $1.74 billion during the period, up 10.48%, year-on-year, while imports amounted to $3.35 billion, down 4.69%. That made for an agricultural trade deficit in the second quarter of $1.62 billion, down 16.95% from a year earlier. Overall agricultural trade, which totals imports and exports, was $5.09 billion, down 0.01% year-on-year. Agriculture accounted for 11.04% or $5.09 billion of total trade, which was $46.119 billion in the second quarter.
African Swine Fever Could Cut Philippines’ Ham Sales by $780 Million Bloomberg 14th Oct 2019
The ban imposed by Philippine provinces on pork products from the main Luzon island in response to African swine fever will cut processed meat sales by an estimated 40 billion pesos ($780 million) annually, an industry group said. Provinces, mostly in Visayas and in Mindanao, have implemented a total or selective ban on pork from Luzon. “We beg that rules and restrictions be based on science and expert advise,” the Philippine Association of Meat Processors Inc. said in a statement.
DA stops prelims on rice import safeguard The Manila Times 14th Oct 2019
The worse has yet to come for the local rice industry, as the government is still undecided whether the country will impose safeguard measures amid the influx of imported rice that have resulted in a drop in palay (unmilled rice) prices. The imposition of a safeguard duty on rice imports is one of the measures the government was banking on to arrest the influx with the forthcoming main harvest season. But the Department of Agriculture (DA) in a statement on Oct. 10, 2019, said it “terminated” its own preliminary investigation on the application for a general safeguard measures on imported rice.
DA raises ASF indemnity payment Manila Bulletin Business 14th Oct 2019
From a compensation of only P3,000 per pig, local backyard raisers will now be paid P5,000 for each of their pigs the Department of Agriculture (DA) will cull to prevent the deadly swine disease African Swine Fever (ASF) from spreading in certain areas. Over the weekend, the DA said that President Rodrigo Roa Duterte approved the recommendation of Agriculture Secretary William Dar to increase the financial assistance given to backyard raisers whose hogs were culled due to ASF. This means previous recipients will receive an additional P2,000 per culled pig.
House vows P100 billion trust fund for coco farmers philstar.com 14th Oct 2019
The House of Representatives has vowed to pass before year-end the measure seeking to create a P100-billion trust fund for the use of farmers in the coconut industry, which President Duterte prioritized but had previously vetoed. Speaker Alan Peter Cayetano said necessary refinement in the measure would be made by the Lower House when it resumes session next month to avoid a third veto from the President and for its implementation next year. “Before the end of the year, I’m expecting the bill on coco levy funds to be passed by Congress. That’s about P100 billion in funds that will benefit our coco farmers,” he revealed in an interview in Ozamiz City.
Food processors seek sugar import allocation Manila Bulletin Business 14th Oct 2019
Amid the rising opposition against the liberalization of sugar industry, local food processors yesterday changed tune saying they only seek an annual sugar import allocation to stabilize supply for manufacturers and improve their global competitiveness. An import allocation of as much as 105,000 metric tons (MT) of the sweetener every year would be enough for them, officials of Philippine Chamber of Agriculture and Food Inc. (PCAFI) and Philippine Food Processors & Exporters Organization (Philfoodex) said. In a joint statement, Philfoodex President Roberto Amores and PCAFI President Danilo Fausto said they will soon seek the approval of President Rodrigo Duterte for an annual sugar import allocation, which will help stabilize their manufacturing input and raise their global competitiveness with heftily lower cost.
Luzon farmers join call vs sugar import liberalization philstar.com 14th Oct 2019
Sugar farmers in Luzon joined the fray in putting pressure on the Department of Agriculture (DA) and the Sugar Regulatory Administration (SRA) to protect the sugar industry and prevent the planned import liberalization announced by economic managers. The DA and SRA were earlier urged by Sen. Juan Miguel Zubiri to make a stand on sugar import liberalization, amid what he calls their “deafening silence” on the issue. Former SRA board member Lito Sandoval even chided SRA administrator Hermenegildo Serafica who earlier said his personal stand was for the farmers but will take his “guidance” from Agriculture Secretary William Dar.
Rice, corn stocks up in September The Manila Times 12th Oct 2019
The country’s rice and corn inventory posted significant increases as of September 1, the Philippine Statistics Authority (PSA) said. In its monthly inventory report, the PSA said the country’s rice stocks reached 1.842 million metric tons (MMT), a 57.9-percent increase from 1.167 MMT in September 2018. Month-on-month, it went up by 13.7 percent from the earlier 2.133 MMT. Stocks in National Food Authority (NFA) depositories jumped by 268.6 percent to 409,530 MT year-on-year. Stocks in households and commercial warehouses rose by 10.3 percent to 673,100 MT and 70.5 percent to 759,740 MT, respectively. On a monthly basis, stocks in commercial warehouses and households increased by 13.7 percent and 15.1 percent, respectively. Meanwhile, NFA depositories expanded by 11.2 percent.
Delay on rice safeguard measures to worsen crisis, farmers’ group says philstar.com 11th Oct 2019
The current situation of the rice industry is expected to worsen unless the Department of Agriculture finally decides on whether or not it will impose safeguard measures amid the deluge of imports that dampened local palay prices. Agriculture Secretary William Dar has yet to decide on the matter even if the deadline set by the law is today. “We are discussing it. No comment yet,” Dar’s short response to reporters during the DA budget hearing on Wednesday. The Federation of Free Farmers, however, warned that the more the DA delays the decision, the more serious the situation will become.
Guimaras told to turn to agriculture as tourism drops 74% in August Business World 10th Oct 2019
ILOILO CITY — Local government units (LGUs) in Guimaras have been advised to develop agriculture for the time being pending the resolution of disrupted boat service to the island province which caused tourist arrivals to drop 74% in August. Department of Tourism (DoT)-Western Visayas Regional Director Helen J. Catalbas offered the department’s help in marketing Guimaras produce in Iloilo. On Aug. 3, three boats sank in bad weather in the Iloilo Strait, leading to the imposition of restrictions on the ferry services that the island depends on. The restrictions include limited hours of operation, which has made day trips less manageable and put visitors at risk of missing their return trips to the Panay mainland.
DA forms 30-man task force on low palay prices - Jasper Y. Arcalas BusinessMirror 10th Oct 2019
THE government has formed a 30-man multisectoral task force that would address and fast-track measures to help farmers cope with declining farm-gate palay prices that have sunk to a more than seven-year low, according to a Department of Agriculture (DA) document. The DA issued Special Order (SO 862), Series of 2019, which created a task force that would “facilitate assistance relative to the drop of palay farm-gate price.” The task force is composed of experts and economists from academe, the private sector and government, as well as representatives of rice farmers, millers, cooperatives and various government agencies related to rice
‘Relief measures for rice planters can’t wait’ - Cai Ordinario BusinessMirror 8th Oct 2019
PRESIDENT Duterte must appeal to both chambers of Congress to postpone their monthlong recess and immediately convene for special session to act on resolutions that seek to put in place relief measures for rice planters. Local think tank Action for Economic Reforms (AER) on Monday made this appeal as farmers have started harvesting rice. The farm-gate price of unhusked rice usually declines during harvest. AER said Congress must act on Senate Joint Resolutions (SJR) 2 and 8 which seek to provide direct transfers to farmers from the Rice Competitiveness Enhancement Fund (RCEF). The measures will give farmers a financial assistance of P600 a month under the government’s 4Ps program.
Consumer groups urge DTI to review SRP increase The Manila Times 8th Oct 2019
In a letter to Domingo Tolentino Jr, DTI Consumer Protection and Advocacy Bureau (CPAB) director, LKI President Victorio Mario Dimagiba said price increases should be “fended off” until the impact of the oil prices become stable amid the recent attacks on Saudi oil facilities. Dimagiba also said that prices of raw materials were on a downtrend contrary to some manufacturers’ claim. “The Laban Konsyumer Inc. an accredited DTI consumer organization, respectfully submits that the bureau thoroughly investigate the basis of such increases. Our research show[s] that the costs of raw materials of tin, coffee, wheat for noodle, tamban [herrings] for sardines, foreign exchange rate and power rates are either flat, stable and as to be pointed out here reduced and lower[ed] for the year 2019,” said Dimagiba.
NFA optimistic on 2019 target The Manila Times 8th Oct 2019
The state-run grains agency National Food Authority (NFA) on Monday expressed optimism on achieving its palay (paddy rice) procurement target for 2019, citing the agency’s impressive performance in September or the start of the harvest season. In a statement, NFA Administrator Judy Dansal said the agency procured 621,430 bags of palay from local farmers, mostly in Western Visayas and some areas in Luzon as of end-September, totalling 6.6 million bags of locally-procured palay since January 2019. “We have already reached 46 percent of our target for the year, but we are very hopeful that we can achieve 100 percent or more as the main crop traditionally yields about 70 percent of the total annual production. Historically, we buy more from farmers during the last quarter of the year, and we have increased our buying price, so our target is very attainable,” Dansal said.
Health & Life Sciences
India to help enhance liver transplants in PHL - Roderick Abad BusinessMirror 21st Oct 2019
TO help save the lives of more Filipino children suffering from biliary atresia (BA), health-care institutions from both the Philippines and India have agreed to strengthen their collaboration on pediatric liver transplant by making the procedure widely available here at a more affordable cost. No less than Indian President Ram Nath Kovind lauded this initiative of hospitals between the two allied nations, wherein Indian doctors will train their Filipino counterparts so that liver transplant surgeries can be done here via the local liver centers at a cost similar to that of India.
DOH to set up regional mental-health council in Calabarzon BusinessMirror 21st Oct 2019
THE Department of Health in the Cavite, Laguna, Batangas, Rizal, Quezon (Calabarzon) region has laid plans for the creation of a regional mental- health council (RMHC) that will provide sustainability to the mental-health program of the region. Calabarzon Regional Director Eduardo C. Janairo said this in his message during the second Mental Health Summit for Calabarzon held in Quezon City last October 17. This program was unheard of before and only a small percentage was given to health care, Janairo said in Filipino. “Mental health is just as important to our physical health as it is interconnected. Mental health is very important at every stage of life: from childhood to adolescence and through adulthood.” DOH-Calabarzon will be the third region to have a RMHC. The first was established in Region 5 even before the mental-health law was signed and the second was in Region 8. When an area has an active mental-health program, it is able to provide enough attention and mental-health needs to its constituents, Janairo said. But he said that if you lose the program manager and the leader who implements it, the program loses. Janairo said this is where the creation of a RMHC comes in and ensure the sustainability and continuity of the program.
GOCC subsidies surge in August Business World 20th Oct 2019
SUBSIDIES extended to government-owned and -controlled corporations (GOCCs) rose sharply in August led by the Philippine Health Insurance Corp. (PhilHealth). The Bureau of the Treasury (BTr) reported that subsidies provided to GOCCs amounted to P31.808 billion in August, well above the P5.037 billion issued a year earlier. PhilHealth received 87.07% of the total, or P27.695 billion, in August, well above the P2 billion granted a year earlier. The Philippine Crop Insurance Corp. received P1.952 billion, or 6.13% of the total, and the National Electrification Administration received P571 million in August. In the eight months to August, subsidies totaled P96.794 billion.
Pay hike for gov’t nurses via Congress resolution sought Business World 20th Oct 2019
CONGRESS can file a joint resolution allowing a salary increase for government nurses after the Supreme Court upheld a higher salary grade under the law, a congressman said yesterday. “The House of Representatives and the Senate have the option to pass a joint resolution putting into effect the higher starting pay of P30,531 for nurses employed by the national government,” Party-list Rep. Michael T. Defensor in a statement. The high court early this month upheld Section 32 of the Philippine Nursing Act, which states that the minimum base pay of nurses in public health facilities should be at salary grade 15.
Kidney for sale: How organs can be bought via social media in the Philippines CNA 20th Oct 2019
In the Philippines, advertisements for healthy kidneys are common on social media. Typing something along the lines of ‘kidney donation Philippines’ or ‘kidney for sale’ in the Facebook search bar will reveal countless posts by organ brokers, kidney patients and hopeful sellers who want to leverage social media’s reach to complete a deal. Organ trafficking is nothing new in the Southeast Asian nation. For decades, it has been known globally as a high-risk country for transplant tourism because of its great medical expertise, several transplant facilities and limited national oversight.
Philippines in midst of ‘health care crisis’ Inquirer 19th Oct 2019
Health workers’ groups warned on Friday that the government’s health programs are bound to falter if it fails to address the “health crisis” besetting the country. In addition to outbreaks of infectious diseases, the groups said the health sector remains grossly underfunded with hospitals still understaffed and personnel still underpaid.
PHAP wants DOH to review cheaper health-care options Business Mirror 15th Oct 2019
THE Pharmaceutical and Healthcare Association of the Philippines (PHAP) said it fully backs the Department of Health (DOH) campaign to make medicines affordable, stressing its commitment to work with the agency to widen healthcare services for Filipinos as well. “We share the same objective with the Department of Health to lower medicine prices. We are exploring partnerships and we want to work hand in hand with the DOH in making quality medicines and healthcare services more accessible,” said Teodoro Padilla, executive director of PHAP in a statement. Padilla said the industry would ask for a meeting with Health Secretary Francisco Duque III to harmonize their efforts in not just lowering medicine prices by up to 84 percent for various disease categories, but also in ensuring that patients are supported throughout their journey. In the meeting with DOH, PHAP also aims to discuss existing high-impact patient assistance programs by individual PHAP members that give free screenings and diagnostic tests, education and counseling, and special medicine pricing for patients—all in a bid to lower total treatment cost.
Digitization of health care seen as vital follow-up to UHC Business World 14th Oct 2019
THE digitization of health care services is becoming urgent to ensure the efficient rollout of the Universal Health Care (UHC) Law, for which the guidelines have recently been released, officials said. Representative Angelina D. Tan of Quezon’s fourth district told BusinessWorld that her next priority is to fast-tracking the eHealth Bill at the House of Representatives. Ms. Tan, who is the author of the UHC Law, said she has formed a technical working group (TWG) that will start discussing the eHealth Bill this week. “We will have a TWG scheduled on Oct. 15… It’s an important component to the Universal Health Care Law… health information should be digitized. We want that portability of health information of each Filipinos and it should be inter-operable so that will be easier,” she said. “It will be much more effective and efficient for delivering health services.” The eHealth Bill was first approved by the House during the 17th Congress but did not reach the Senate before the Congress ended.
DOH chief signs IRR of Universal HealthCare Philippine Star 11th Oct 2019
With a required funding of P1.5 trillion until 2024, the government is eyeing a progressive implementation of the Universal Health Care (UHC) law after Health Secretary Francisco Duque III signed yesterday its implementing rules and regulations (IRR). “The implementation of the law is going to be universal in scope, but progressive in rollout,” Duque said.He said the issuance of the IRR would pave the way for the implementation of a holistic health care system for every Filipino.
Youth’s mental health, a crucial challenge for educators–Briones BusinessMirror 7th Oct 2019
EDUCATION Secretary Leonor M. Briones has reminded teachers that mental health among students is a “crucial challenge” that they need to address. Keynoting the launch of the ninth year of the Values Advocacy Program of Fortune Life Insurance Co. recently, Briones advised teachers to be alert to signs of mental health problems among their learners. The Values Advocacy Program is a project of Fortune Life promoting the values of hard work and discipline among public school pupils in partnership with the Department of Education (DepEd) and advocacy organization Marylindbert International.
Expanded PhilHealth coverage for stroke needed – SSP - Roderick Abad BusinessMirror 6th Oct 2019
THE Stroke Society of the Philippines (SSP) is pushing for higher coverage by Philippine Health Insurance Corp.’s (PhilHealth) for the treatment of patients who have suffered a stroke. This initiative, according to Prof. Dr. Jose Navarro, is their way of helping ease the burden of this second most common cause of death in the country, after heart disease. “The stroke prevalence in our country is about 1.2 percent to 1.4 percent. So what does it mean? For every hundred people in the community, you will see that one or two of them had stroke,” he told reporters in a roundtable discussion at the SMX Convention Center in Pasay City over the weekend.
DOH begins catch-up polio vaccination in Mindanao, Metro Manila Rappler 18th Oct 2019
The Department of Health (DOH) on Monday, October 14, began its catch-up vaccination campaign against polio for children 5 years old and below in various cities and provinces in Mindanao and in Metro Manila. The synchronized vaccination against polio kicked off on Monday in Lanao del Sur, Marawi City, Davao City, Davao del Sur, and Metro Manila, and will run until October 27. Other provinces in Mindanao will be covered from November 25 to December 7.
Big Filipino Pharma bets big on natural health products Inquirer 18th Oct 2019
To better serve a steadily growing market, United Laboratories Inc. (Unilab), the country’s largest pharmaceutical company, has ventured into natural health products and is firm about developing them within the bounds of scientific research. World Health Organization research indicates that more than half of the global population still relies on herbal remedies, which may account for the annual 15-percent spike in the business of plant-based medicines. But Unilab’s foray into botanicals in 2013 wasn’t entirely profit-driven. On the contrary, several shareholders had started supporting indigenous communities and needed consistent on-site economic activity to sustain their projects.
DOH to step up campaign vs e-cigarettes amid TRO philstar.com 18th Oct 2019
Despite a legal setback, the Department of Health (DOH) will continue to campaign and raise public awareness on the harmful effects of electronic cigarettes and heated tobacco products. The agency, during a press conference yesterday, officially recognized that Electronic Nicotine Delivery System (ENDS) gadgets, also known as e-cigarettes or vapes, cause diseases. “Electronic cigarettes and heated tobacco products are sold in the market as alternatives for smokers trying to wean themselves off tobacco. (But) these products endanger the health of both users and non-users, and are clearly not meant for children,” Health Secretary Francisco Duque III said.
Philippines Unlikely to Ban E-Cigarettes But Higher Tax Eyed Bloomberg 17th Oct 2019
A ban on electronic cigarettes is unlikely to be on the cards for the Philippines. Finance Secretary Carlos Dominguez said the country will instead use an increase in excise taxes to discourage the use of e-cigarettes amid growing global concern over their health risks.
Congress asked to pass teenage pregnancy prevention bill Manila Bulletin News 11th Oct 2019
In time for the world celebration of International Day of the Girl Child on Friday, Save the Children Philippines called for the passage of the teenage pregnancy bill to address the steady rise of pregnancy among girls aged 10-19 years old who face health risks and death – among others. Save the Children Philippines Chief Executive Officer Albert Muyot called for the enactment of the Teenage Pregnancy Prevention Bill pending in the Senate and the House of Representatives that provides adolescents access to appropriate reproductive health services, gives training to teachers and parents on how to discuss sexuality education with children. “Early pregnancy forces girls to grow up quickly, while their bodies are often not ready for child-bearing, leading to potential complications,” he said.
IRR of Universal Health Care law to be signed Thursday, says Duque GMA News Online 9th Oct 2019
Authorities will sign the Implementing Rules and Regulations (IRR) of the Universal Health Care law on Thursday, October 10, Health Secretary Francisco Duque III said Wednesday. The IRR will guide the Department of Health (DOH) and its partner agencies, particularly PhilHealth, in implementing the landmark law, Duque said at the Kapihan sa Manila Bay news forum. Under the UHC law, all Filipino citizens are automatically enrolled into the National Health Insurance Program as direct contributors, or those who have the capacity to pay premiums, and indirect contributors sponsored by the government such as indigents and senior citizens.
ICT
More than half of Philippine companies use pirated software philstar.com 18th Oct 2019
More than half of Philippine companies use illegal software in their business operations, a new survey released Friday found, putting data at risk nationwide and creating significant gaps in the country’s cyber security defenses. According to a 2018 poll by industry group BSA | The Software Alliance, an estimated 64% of corporations in the Philippines use pirated software. But the rate was still far behind the Philippines’ Southeast Asian peers like Singapore and Malaysia, where the use of unlicensed software is at 27% and 51%, respectively.
Unlocking digital opportunities in PH Inquirer 14th Oct 2019
Digital is truly becoming a front-and-center priority for the Philippines. The Fourth Industrial Revolution, or Industry 4.0, is changing the dynamics of the Philippine economy by accelerating productivity, lowering barriers between inventors and markets, improving quality of lives and rapidly building capabilities. The case for digitalization is clear. According to a McKinsey & Company research effort that studied 2,393 of the largest nonfinancial companies over a 10-year period, there are trillion-dollar opportunities available to companies that manage to extract the full value from technology.
Poor Internet connection spurs ‘creative ways’ for digital technology in banking and finance - Bianca Cuaresma BusinessMirror 10th Oct 2019
FROM its early beginnings of traditional brick-and-mortar transactions to the rise in automation as seen in the proliferation of automated teller machines (ATMs), the global banking industry is facing yet another new wave of innovations to make financial management faster and more efficient. Amid the rise in global connectivity through the Internet, financial innovations are evolving, and financial technology—or the so-called fintech—is becoming the new mode of doing business among banks and financial institutions all over the world. In recent years, advanced technology providers have diversified into the world of financial services—with two of the largest competing technological giants, Google and Apple, now providing digital wallet services.
NOAH unveils business applications for controllership The Manila Times 9th Oct 2019
To address the emerging requirements of a digital-focused society, NOAH is offering business applications that could provide organizations with the capability to invoke artificial intelligence by having an end-to-end application software. This was revealed during the “NOAH Business Applications Digital Transformation Forum for Controllership” at the Grand Hyatt Manila hotel in Taguig City on Tuesday. It was third leg of the company’s events about digital transformation, with the first two focusing on digital transformation on real estate and production.
Fitch: Affordable handsets needed for 5G takeoff The Manila Times 9th Oct 2019
AFFORDABLE Fifth Generation (5G)-enabled devices must be in place before telecommunications firms in developing economies, like the Philippines, could capture the masses with prepaid 5G service, Fitch Ratings said. In a report released on Tuesday, the debt watcher said industry giant Globe Telecom Inc. was initially tapping the household market, allowing it to bolster its position in the fixed-broadband space.
Study cites PHL’s digital economy potential Business World 6th Oct 2019
POTENTIAL for developing the Internet economy in the Philippines remains the biggest in Southeast Asia, according to an annual Google-led report that said the region can be expected to breach the $100-billion mark in gross merchandise value (GMV) this year. The 2019 e-Conomy report released on Thursday, which Google conducted in partnership with Temasek Holdings Pte. and Bain & Co., said Southeast Asia’s Internet economy shot up almost 40% to break the $100-billion mark this year. Growth was fueled by online travel, e-commerce, online media and ride hailing sectors. “This pace of growth has exceeded all expectations. At this rate, the Southeast Asian Internet economy is on track to hit $300 billion by 2025, topping our initial projection in 2016 by $100 billion,” it said.
Trendy global online marketplace to help Philippine business owners grow their business BusinessMirror 4th Oct 2019
“The Philippines is a hugely important market for us, and is currently undergoing lots of change to meet the needs of a rapidly growing base of savvy online shoppers,” explained Kevin Kwan, Head of Strategy and Operations for eBay Southeast Asia. “We want to ensure we are well positioned here by offering Filipino SMEs a global brand, a trusted platform, and a local management team to help grow their business.” He added that they are attracting a new generation of online shoppers by featuring tightly curated deals, offering new and seasonal products at friendly prices. In many cases, eBay sellers source their products from other markets so that they can offer brand new global releases not available anywhere else in the Philippines.
Boosting the Philippine economic scene through the Innovative Startup Act BusinessWorld 22nd Oct 2019
According to the 2019 World Bank report, the Philippines ranks 124th out of the 190 economies in terms of ease of doing business. Meanwhile, its neighbors, namely: Malaysia, Vietnam, Singapore, Thailand and Indonesia, rank 15th, 69th, 2nd, 27th, and 73rd, respectively. This in part shows that there is still so much more to be done to improve the Philippines’ competitiveness in terms of ease of doing business. Improvement in economic environment is needed; one that is more attractive and conducive to businesses, especially to new entrants with novel or innovative ideas that can help move and enliven the Philippine economy.
Infrastructure
Laguna section of CALAX due to open at end of October BusinessWorld 22nd Oct 2019
THE Department of Public Works and Highways (DPWH) said Tuesday it will open on Oct. 30 the first 7.4-kilometer (km) of the Laguna segment of the Cavite-Laguna Expressway (CALAX). “Oct. 30, before Undas (All Saints’ Day), we can expect this to be passable,” Public Works Secretary Mark A. Villar told reporters, referring to the Subsections 6, 7, and 8 of the Laguna segment of the 45.3-kilometer CALAX project. The entire length of CALAX project will connect the Manila-Cavite Expressway (CAVITEx) from Kawit, Cavite to the South Luzon Expressway (SLEx) at the Mamplasan Interchange in Biñan, Laguna. The DPWH and the project’s concessionaire MPCALA Holdings, Inc. conducted a final inspection of the subsections of the Laguna segment Tuesday, which covered the Mamplasan Barrier onto Laguna Technopark Interchange, Laguna Boulevard Interchange all the way to Santa Rosa-Tagaytay Interchange.
Alignment review for subway ‘too late now’ - Lorenz S. Marasigan BusinessMirror 21st Oct 2019
WHILE the alignment of the future subway system in Metro Manila has been finalized, the Department of Transportation (DOTr) remains open to studying new solutions to further improve the so-called project of the century. Responding to an earlier statement made by Sen. Grace Poe, Transportation Secretary Arthur P. Tugade said a review of the alignment and the cost of the P365-billion railway facility in Metro Manila is already too late at this point, as the plan has already been approved by the National Economic and Development Authority (Neda).
US businesses told PHL well-anchored Business World 20th Oct 2019
THE PHILIPPINES may have lately seen multilateral organizations cut its growth outlook with much of Asia and the rest of the world, but even those reduced forecasts stand out amid the gloom, thanks to the country’s strong domestic economy, the Finance chief told a gathering of US businessmen late last week. “Forecasts for global growth have been cut successively over the recent months. The slowdown presents headwinds on our own efforts to grow our economy,” Finance Secretary Carlos G. Dominguez III said in his speech at the start of the Philippine Economic Briefing Roundtable Lunch in Washington D.C. on Oct. 17, a copy of which was e-mailed to journalists on Sunday. “But the Philippines continues to demonstrate strength, stability and resilience in adverse conditions. We hope to sustain our growth, relying on strong domestic demand to offset the general international uncertainty.”
Duterte revamps list of priority infrastructure projects Business World 20th Oct 2019
PRESIDENT Rodrigo R. Duterte will unveil a revised list of about 100 big infrastructure projects to be launched before his term ends in 2022, after some earlier projects were found to be unfeasible, an adviser said. “We’re redoing the entire list,” Vivencio B. Dizon, who was appointed last month as presidential adviser for flagship infrastructure projects, said in an interview Thursday in Manila. Projects “deemed unfeasible at this time” were dropped after a review of the original 75 projects in Mr. Duterte’s $180-billion “Build, Build, Build” program, said Mr. Dizon, who is also president and chief executive officer of the Bases Conversion and Development Authority (BCDA).
Transport sector to get lion’s share of ADB loans - Cai Ordinario BusinessMirror 18th Oct 2019
THE Asian Development Bank (ADB) is hiking its lending to the Philippines for 2020 to 2022 amid Manila’s continuous efforts to resolve the worsening traffic congestion in major cities and rapid urbanization. ADB Philippines Country Manager Kelly Bird said the Manila-based multilateral development bank will extend a total of $9.1 billion in loans to the Philippine government in the next three years.
US, Japan boost security, infra assistance to PH Manila Bulletin Business 17th Oct 2019
United States and Japan governments are working together to increase assistance – financial, technical and advisory – to the Philippines to enhance the country’s capability to deal with security concerns such as on digital technology and infrastructure. US Deputy Chief of Mission to the Philippines, John C. Law, said the long-term goal of the US government is to improve and expand the economic and investment relationship between the Philippines and the US, and they are partnering with Japan to ensure prospects materialize and there is sustainable and continued economic domestic growth.
P393-B Metro Manila subway is ‘project of the century’ for PH Inquirer 16th Oct 2019
The country’s first subway project appears on track to become a reality that will help transform Metro Manila’s image as a congestion case study into a more efficient and functional metropolis. Transportation Secretary Arthur Tugade said early construction activities of the Japan-backed Metro Manila subway would start later this year with partial operability seen by 2022 and full completion by 2025. Infrastructure completion targets are as fluid as the policies that shift between administrations. But the country’s economic managers are correct in championing the subway project, one of the defining components of their “Build, Build, Build” infrastructure program.
House resolution seeks 6-month freeze or reduction in SLEX tolls Business World 15th Oct 2019
A LEGISLATOR filed a resolution Monday seeking to suspend or lower tolls charged on users of South Luzon Expressway (SLEX) while the road is experiencing severe congestion. “Magkaroon ng suspension o reduction o pagpapababa ng toll fees diyan sa SLEX habang nakakaranas ang ating mga kababayan ng matinding traffic (I propose a suspension or reduction in toll rates on SLEX while users experience severe road congestion along the highway,” Representative Sol Aragones of Laguna’s 3rd district told reporters after she filed House Resolution No. 428. In her resolution, Ms. Aragones said that commuters should be given relief citing the on-going construction of the Skyway extension which led to the closure of some lanes in SLEX. She said the proposed resolution will be effective for six months, and the final form of road user relief to depend on the outcome of further talks.
Feasibility studies due this year for Bicol expressway, 4th Cebu-Mactan bridge Business World 14th Oct 2019
THE Department of Public Works and Highways (DPWH) hopes to submit next month feasibility studies for a Bicol road project and the fourth Cebu-Mactan bridge. Public Works Secretary Mark A. Villar told reporters last week the department is preparing the final drafts of the feasibility studies for the Quezon-Bicol Expressway (QBEx) and another Cebu-Mactan bridge. “Those are two of the major projects that we’re targeting to submit to NEDA (the National Economic and Development Authority) within the year,” he said. The QBEx spans some 220 kilometers from Pagbilao, Quezon to the Maharlika Highway in San Fernando, Camarines Sur, near Naga City. The DPWH said the highway hopes to bypass current roads which pass through town centers. “(Our target for completing the studies is) within this month or early next month… then we’ll submit it to NEDA,” Mr. Villar said. The department earlier said that while the approval of QBEx is still up to NEDA, including the indicative cost of the project, what is wants is to have the project financed by various modes.
Top Philippine presidential aide insists 'no transport crisis' in Manila even after 4-hour commute The Straits Times 11th Oct 2019
It took President Rodrigo Duterte's spokesman nearly four hours to commute from his home to his office 20km away on Friday (Oct 11) in a much-ballyhooed publicity stunt to prove a point. Flying from Manila to Singapore takes less time, and Mr Salvador Panelo probably would have reached his destination earlier had he walked all the way. Still, he insisted there was no "mass transport crisis" in Metro Manila.
Maynilad allots P53B for new sewer lines Business World 10th Oct 2019
MAYNILAD Water Services, Inc. has allocated more than P53.4 billion to install new sewer lines spanning up to 425 kilometers starting next year until the end of its concession in 2037 to ensure the provision of sewerage services for its customers in the west zone. “Sewer pipes have to be laid at a lower depth compared to water pipes — some as deep as fourteen meters below ground level — so wastewater projects take a longer time to complete,” said Randolph T. Estrellado, Maynilad chief operating officer, in a statement on Wednesday. He warned that the installation of the sewer network may cause some inconvenience to motorists. “To minimize traffic congestion in our project sites, we will use trenchless technology where feasible, although said technology will significantly increase the cost to install the sewer network,” he said.
A simple app to fight mobility problems becomes a quick fix, albeit a partial solution to Freedom From Congestion - Lorenz S. Marasigan BusinessMirror 10th Oct 2019
TRAFFIC congestion has become the new normal for the people living and working in Metro Manila. On average, someone traveling within Metro Manila on a daily basis spends at least 16 days and loses roughly P100,000 in economic opportunities per year stuck in bottlenecks, according to a study by the Boston Consulting Group. From a macro perspective, the Japan International Cooperation Agency (Jica) pegs Philippine productivity losses on traffic at P3.5 billion per day in Metro Manila alone, and another P1 billion in the neighboring cities of the metropolis.
‘You build and they will come’ - Jun Lomibao BusinessMirror 10th Oct 2019
THE classics come into play at the New Clark City (NCC) in Capas, Tarlac, where two world-class sports facilities—a 20,000-seat Athletics Stadium and a state-of-the-art Aquatics Center—sit on what used to be a US military facility situated on hectares upon hectares of grass and shrub land. “If you build it, they will come,” was that classic line from the 1989 Kevin Costner film Field of Dreams—a line expressed in whispers in the movie but reverberates endlessly no matter the genre. “It’s building something close to impossible,” says Nikko David, president of MTD Philippines, builder of the 9,450-hectare new metropolis that has risen from what was the former US military gunnery, Crow Valley, and radar facility Camp O’Donell.
Manila Water says it complied with Clean Water Act - Jonathan L. Mayuga BusinessMirror 10th Oct 2019
MANILA Water on Wednesday insisted that it has complied with its responsibilities under the Clean Water Act and should not be fined a total of P921 million. Manila Water filed a motion for reconsideration last week. The water concessionaire for the East Zone said there is no basis for the Supreme Court’s 2019 decision, slapping the company with the huge penalty for failing to complete its sewerage projects by 2009—or five years after the Clean Water Act took effect—and an additional running daily fine of P322,102 until the sewerage project is completed. It warned that should it be compelled to pay the fine and complete the sewerage projects, water rates could go up by 780 percent or by as much as P26.70 per cubic meter.
RSA will focus on Bulacan Airport - Ma. Stella F. Arnaldo BusinessMirror 8th Oct 2019
The business tycoon and president of food and beverage giant San Miguel Corp. told the BusinessMirror in Filipino, “No. I won’t pursue any more airport projects. I just want to concentrate on the Bulacan airport so we can finish it quickly.” San Miguel’s $15-billion international airport in Bulacan was recently given the go-ahead by the government, and is projected to be completed by 2025 once it starts construction this year. Previous published reports quoted Ang as saying he was also interested in constructing, upgrading, or operating/maintaining provincial airports, such as those in Bacolod, Davao, Iloilo, Laguindingan, and Bohol.
DoTr to focus on railway dev’t in 2020 Business World 6th Oct 2019
RAILWAY PROJECTS are taking center stage next year as the sector will account for bulk of the Department of Transportation’s (DoTr) proposed budget for 2020. The department presented to the Senate on Thursday its P147-billion proposed spending plan for next year, where P108 billion will be spent on projects, of which 99% will be spent on railways. The Senate Committee on Finance approved the budget, which will now be taken up at the plenary. Approximately P106.7 billion of DoTr’s approved budget for projects will go to railways, followed by P507.5 million for the maritime sector, P346.5 million for the aviation sector and P101 million for roads. About P360.6 million of the budget will go to other projects.
Foreign investments key to infra growth The Manila Times 5th Oct 2019
A Fitch Group unit on Friday highlighted the importance of private and foreign investments for the Philippines’ flagship infrastructure program. “The Philippines’ infrastructure needs will be partially met by President Rodrigo Duterte’s Build Build Build program, but its large infrastructure deficit means that the country will have to attract more private and foreign investments into the sector to close the gap,” Fitch Solutions said in a report. Large-scale infrastructure development is a priority for the current administration under Build Build Build, which includes 75 priority projects.
New Ports Lure Asia’s Biggest Cruise Ship to the Philippines Yahoo! Finance 8th Oct 2019
The Philippines, a country of more than 7,600 islands where you’re rarely more than a few miles from the sea, wants a bigger slice of Asia’s growing cruise-tourism industry.
PHL among infra-challenged countries–ADB BusinessMirror 7th Oct 2019
POOR infrastructure continues to hinder the Philippines from maximizing its manufacturing potential, according to the Asian Development Bank (ADB).
Solon urges gov’t to replicate Malaysia’s SMART tunnel Manila Bulletin News 6th Oct 2019
Pasig City Rep. Roman Romulo urged Sunday the government to look into the feasibility of replicating Kuala Lumpur’s Stormwater Management and Road Tunnel (SMART) to address the worsening traffic situation along Epifanio de los Santos Avenue (EDSA).
Duterte invites Russian firms to join PH infrastructure program Rappler 6th Oct 2019
President Rodrigo Duterte has invited Russian companies to participate in the Philippines' infrastructure program, particularly in transportation and railway construction projects.
Legislation
Senators cool to divorce bill, eye dissolution of marriage - Butch Fernandez BusinessMirror 21st Oct 2019
SENATE leaders foresee an uphill battle for the divorce bill in the Senate, even as an alternative option is being seriously mulled over by lawmakers. “Most probably dissolution of marriage instead,” Senate President Tito Sotto III said in a text message to BusinessMirror when asked whether senators can muster a majority vote to swing approval of a divorce bill. The Senate President signalled an emerging consensus favoring the alternative bill on dissolution of wedding vows, rather than divorce. He added that the dissolution bill would provide “expanded and easier annulment procedures,” but did not go into details.
Beyond dissent, Nene was a great builder BusinessMirror 21st Oct 2019
THE Senate and the Constitutional Commission (Con-com), two institutions where he best left his mark in public service beyond his immortal image as defender of democracy, deeply mourned on Sunday is the passing of former Senate President Aquilino “Nene” Pimentel Jr. Senate President Pro Tempore Ralph Recto recalled Pimentel’s “courage of conviction” in a statement hours after Pimentel succumbed to complications of lymphoma at age 85. “While others sought comfort in numbers, Nene drew strength from his conviction,” Recto said, recalling Pimentel as “a maverick who could not resist a good fight, many of which by his lonesome, for he believed that one man with courage was enough to make a majority.”
TRAIN revenues exceed goal Malaya 15th Oct 2019
overnment revenues from the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) Law exceeded target by 6.8 percent in the first semester with major gains seen in the collection of personal income tax, petroleum excise tax, sweetened beverage excise tax, tobacco excise tax and documentary stamp tax. Documents sent by the Department of Finance (DOF) to reporters showed that based on preliminary data, TRAIN revenues reached P55.6 billion in the first half of 2019, P3.5 billion higher than the target of P52.1 billion. “The reported revenue is about half or 49.2 percent of the P113.1 billion full year TRAIN target,” the DOF said. “When compared to the actual TRAIN revenues during the same period last year, this is an increase of 65 percent,” the agency added.
House Leadership counts 18 measures passed on third reading Business World 15th Oct 2019
THE HOUSE majority leader said the chamber has passed 18 measures on third reading since the start of the 18-Congress, including the 2020 Budget, key tax bills, and amendments to the Foreign Investment Act of 1991.Representative Ferdinand Martin G. Romualdez of Leyte’s first district described the chamber’s performance positively, adding that it promptly disposed of some key measures left unpassed by the 17th Congress. House rules permit expedited approval for measures that achieved third-reading approval in the previous sitting of Congress. He listed the measures that this Congress approved on third reading as: • House Bill No. 4228 or the 2020 national budget • House Bill No. 1026 imposing additional excise taxes on alcohol, tobacco, and vape products • House Bill No. 300 or the amendments to the Foreign Investment Act of 1991 • House Bill No. 304 or the Passive Income and Financial Intermediary Taxation Act (PIFITA) • House Bill No. 4157 or the Corporate Income Tax and Incentive Rationalization Act (CITIRA), which was formerly known as the TRABAHO bill
DTI’s worst case for CITIRA job losses is 900,000 Business World 14th Oct 2019
A TRADE official said his worst-case scenario for job losses resulting from incentive rationalization is 900,000, assuming a 100% pullout of manufacturing locators from economic zones. The job loss estimate, based on the scenario of a total manufacturing investor pullout, is 200,000 more than the projection of the Joint Foreign Chambers in the event incentives are rationalized under the proposed Corporate Income Tax and Incentives Rationalization Act (CITIRA), in its current form. The Department of Finance (DoF) said in late September that CITIRA will ultimately create 1.5 million new jobs due to its corporate tax-reduction provisions, which it said will encourage expansion. The large variance in estimates reflects the contentious nature of CITIRA, with the Philippine Economic Zone Authority (PEZA) waging what amounts to be a rearguard action against the legislation. PEZA regulates economic zones and the grant of incentives and counts locators as its main constituency. Trade Assistant Secretary Angelo B. Taningco made his projection at a technical working group hearing on Oct. 10, acknowledging that CITIRA will likely lead to job displacement.
House backs relaxation of bank secrecy Business World 13th Oct 2019
LIFTING of bank secrecy restrictions, as pushed by the Finance department and the central bank, will find ready support anew in the House of Representatives, the chairman of the chamber’s Ways and Means committee said in a mobile phone message last weekend. The move had been pushed as part of a general tax amnesty program, but that amnesty law was approved by the past 17th Congress and enacted sans that provision, which was supposed to help taxmen verify asset declarations of those applying for amnesty.
Peza chief, last hurdle to Citira, backs reform BusinessMirror 10th Oct 2019
IT’S over for industry groups. The Philippine Economic Zone Authority (Peza) Board has decided to throw its support for the passage of the much-debated Corporate Income Tax and Incentives Rationalization Act (Citira) bill to the dismay of economic zone firms. Trade Secretary and Peza Board Chairman Ramon M. Lopez on Wednesday called for a special board meeting to stress the importance of getting the Citira bill passed in Congress. The Citira bill, he said, has a mandate from President Duterte and the approval of the Cabinet.
PEZA to cooperate on incentives draft Business World 9th Oct 2019
AFTER MONTHS of spirited opposition to a push by both the Executive and Congress to overhaul tax incentives for investors, arguing that this move risked pushing such businesses away, the Philippine Economic Zone Authority (PEZA) management on Wednesday agreed to help craft a new package after a meeting called by Trade and Industry Secretary Ramon M. Lopez, according to official statements. “I called a special Board meeting of the Philippine Economic Zone Authority this morning to emphasize the importance of the tax and incentives reform that we are pushing for, which has the mandate from our President and was approved by the Cabinet,” Mr. Lopez, PEZA chairman, said in a press statement. “We had to explain fully that there are ongoing refinements in certain provisions of the bill to address the serious concerns of the stakeholders, especially the existing PEZA locators, and a number of senators who are equally concerned on minimizing any possible repercussion on jobs if some firms leave the country.”
Can MVUC hike be used for UHC? Solons split - Jovee Marie de la Cruz BusinessMirror 8th Oct 2019
LAWMAKERS want the adjustments in the Motor Vehicle User’s Charge (MVUC) to be purely allotted to the Department of Public Works and Highways (DPWH) or the Department of Transportation (DOTr), and used for extra funds for road and other infrastructure projects. Deputy Speaker for Finance Luis Raymund Villafuerte called on fellow lawmakers to approve the measure to guarantee enough funds for road repair and other infrastructure projects, following the Department of Finance’s (DOF) formal support for his version—House Bill or HB 3006—of this proposed tax reform.
BSP supplying 116-million national ID cards to PSA - Cai Ordinario BusinessMirror 8th Oct 2019
THE Bangko Sentral ng Pilipinas (BSP) said it will produce 116 million blank cards for the Philippine Identification System (PhilSys), or the National ID, in the next three years. The BSP said this is included in the memorandum of agreement (MOA) it forged with the Philippine Statistics Authority (PSA) on Monday. The BSP said the “Phil IDs” are nontransferable cards to be issued to all Philippine citizens or resident aliens registered under the PhilSys.
House sees passage of water dep’t bill by Jan. Business World 7th Oct 2019
THE House of Representatives is expected to approve on final reading by January a bill that seeks to establish a Water department, Rep. Jose Ma. Clemente S. Salceda of the second district of Albay 2nd said Monday. Mr. Salceda, who chairs the ways and means committee and is part of the technical working group studying the creation of the Department of Water Resources Management, said that the chamber is “working very hard” to pass the measure. “We want pasado na siya sa third (to pass the bill on third reading) by January,” Mr. Salceda said in chance remarks to reporters on the sidelines of the technical working group meeting. He added, “…Baka ma-report na itong substitute bill (We might report out a substitute bill) by the first week of November when we return. So we are working very hard. Yung meeting ngayon (Today’s meeting) is more formal, but actually there have been a lot of exchanges and consultations.”
Lawmakers cite priorities in remaining session days Business World 6th Oct 2019
THE P4.1-TRILLION proposed national budget for 2020 as well as remaining packages of the comprehensive tax reform program (CTRP) will take up much of lawmakers’ time when they return to work on Nov. 4 and before they take their Dec. 21-Jan. 19 Christmas-New Year break, key legislators said on Sunday. Senate President Pro Tempore Ralph G. Recto said in a mobile phone message that the Senate will target approving the “budget, alcohol taxes and Malasakit (Center)” starting Nov. 4, while Albay-2nd District Rep. Jose Ma. Clemente S. Salceda in a separate text message said the House of Representatives will continue tackling “aside from alcohol, CITIRA (Corporate Income Tax and Incentives Rationalization Act), PIFITA (Passive Income and Financial Intermediary Taxation Act), FIA (Foreign Investments Act) Amendment, RTL (Retail Trade Liberalization) Amendment.” Mr. Salceda, who chairs the House ways and means committee, added that his chamber will also “try” approving within that period the “RPVA (Real Property Valuation and Assessment), PSA (Public Service Act amendment), MVRUT (higher Motor Vehicle Road User’s Tax), [as well as proposals to set up departments of] Water, OFW (Overseas Filipino Workers), DDR (Department of Disaster Resilience)…”
Manufacturing
Toyota targets 22% higher output in Laguna plant philstar.com 15th Oct 2019
The Philippine unit of Japanese carmaker Toyota Motor Corp. is aiming to hike production this year by more than a fifth amid an anticipated recovery in the automotive industry. During the media tour of the company’s plant yesterday, Luis Marcelino, senior vice president for manufacturing at Toyota Motor Philippines Corp. (TMPC), said the firm has set a goal to assemble 53,669 units out of its facility in Santa Rosa this year, 22 percent higher than the 44,000 units produced last year. He said the company wants to churn out more vehicles as the automotive industry is on track to recover this year following last year’s sales slump as higher taxes dampened demand for automobiles.
Factory output continues slide in Aug The Manila Times 5th Oct 2019
The country’s manufacturing output, both in volume and value, dropped for the ninth consecutive month in August, the Philippine Statistics Authority (PSA) said on Friday. Results of the statistics agency’s Monthly Integrated Survey of Selected Industries showed that the volume of production index (VoPi) declined by 9.3 percent in August, compared with the 6.1-percent contraction in July and 3.1-percent expansion the year before. The decrease was attributed to the annual decreases in seven industry groups, led by petroleum products (-59.0 percent), furniture and fixtures (-43.4 percent), and transport equipment (-19.0 percent). Miscellaneous manufactures (-17.7 percent), electrical machinery (-11.1), beverages (-8.4 percent) and textiles (-3.6 percent) round up the groups with losses.
Manufacturing declines for 8th straight month in August philstar.com 5th Oct 2019
Domestic manufacturing performance weakened in August largely due to the lower output of products in the heavily weighted indexes, the Philippine Statistics Authority (PSA) reported yesterday. Factory output, as measured by the Volume of Production Index (VoPI), contracted by 9.3 percent in August, reversing the 3.1 percent growth a year ago. The Value of Production Index (VaPI), meanwhile, declined by 7.9 percent, likewise a reversal of the 4.1 percent growth in the same month last year. This marks the eighth consecutive month of declines in the manufacturing indexes for this year.
Market Regulation
UN report says non-tariff measures ‘burdensome’ BusinessWorld 22nd Oct 2019
PHILIPPINE companies reporting burdensome non-tariff measures (NTM) outnumber many of their Asia-Pacific peers who have similar experiences, according to a joint report of the United Nations Economic and Social Commission for Asia and the Pacific and the United Nations Conference on Trade and Development. The 2019 Asia-Pacific Trade and Investment Report showed that the trade costs of non-tariff restrictions in the region now exceed double those of tariff measures. As defined by the report, NTMs are policy measures other than ordinary customs tariffs that potentially have an effect on international trade in goods. Among others, NTMs include product requirements, sanitary and price-control measures, as well as border payment procedures.
Travel & Tourism
Philippines lands starring role in film tourism BusinessMirror 20th Oct 2019
THE Philippines’s cinematic arts industry is a vital part of the growth of the nation’s well-being because it promotes, enriches, and disseminates Filipino values, culture and heritage. For the past hundred years, Pinoy Cinema has been the vessel of various voices and an agent of change, so much so that no less than the President acknowledged its importance by proclaiming September 12, 2019, to September 11, 2020, as the Centennial Year of Philippine Cinema. In support of this cultural milestone, the Department of Tourism (DOT) broke yet another barrier in marketing the Philippines by linking hands with Film Development Council of the Philippines (FDCP) in its filmmaking support program aimed at local and foreign film production partnership.
DOT: International tourist arrivals surpass 5-M mark philstar.com 14th Oct 2019
The Department of Tourism reported that the international tourist arrivals in the Philippines breached the five-million mark in August. The DOT recorded a total of 5,554,950 foreign tourist arrivals from January to August this year. The number of inbound foreign guests was a 14.08-percent increase from the 4,869,417 tourists in the same period last year. Data from the DOT Office of Tourism Planning, Research and Information Management showed that for August alone, a total of 702,843 visitors arrived in the country. The August record is 27.54-percent higher than the 551,088 guests in the same month in 2018. The DOT is pleased with the arrival growth as it is closer to its target of 8.2 million foreign tourist arrivals for 2019. The Tourism department recorded more than 4.1 million foreign tourists for the first half of 2019.
Philippines wants to attract more cruise ships to its ports The Straits Times 8th Oct 2019
The Philippines, a country of 7,000 islands where you're rarely more than a few miles from the sea, wants a bigger slice of Asia's growing cruise-tourism industry. For years the South-east Asian nation has lagged behind its neighbours in attracting cruise visitors, partly because of spotty infrastructure. That's bound to change as more ports are built and officials look at cruise tourism as a key source of arrivals. With the economy in danger of notching its slowest expansion since 2011, tourism is emerging as a key focus of efforts to boost growth.
Cebu City to host farm tourism conference BusinessMirror 5th Oct 2019
THE Queen City of the South takes center stage once more as the country’s leading farm tourism practitioners and stakeholders gather for the 6th Farm Tourism Conference at the Marco Polo Plaza Hotel, Cebu City, from November 6 to 8. Themed “Building Community Relationship for Sustainable Development of Farm Tourism,” the event is hosted by the City Government of Cebu, and is co-organized by the International School of Sustainable Tourism (ISST) and the Cebu Alliance of Tour Operations Specialists Inc. (Catos), with the support of the Department of Tourism (DOT), the Department of Agriculture (DA) and the Department of Trade and Industry (DTI).
Cayetano wants Philippines to invest in sports tourism philstar.com 10th Oct 2019
House Speaker and Philippine Southeast Asian Games Organizing Committee Chairman Alan Peter Cayetano on Thursday stressed the need for efficient spending on the hosting of the biennial sports meet. At the press launch for MILO’s new partnership deal with the governing bodies of the Philippines’ SEA Games hosting, Cayetano cited that sports tourism is a $600 billion industry that could prove to be beneficial should the Philippines explore it. “Hindi lang Pilipinas lang ito. It will also build jobs in our country,” he said.
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