| Regional Affairs
Economists, companies eye opportunities from RCEP Business World 11th Nov 2019
THE EMERGING 15-country Asia-Pacific mega-trade deal can be expected to boost Philippine trade and investment prospects amid global trade tensions, economists and business leaders said last week. The Regional Comprehensive Economic Partnership (RCEP) is an emerging trade pact covering the 10 Association of Southeast Asian Nations members as well as Australia, China, Japan, New Zealand and South Korea. The 15 countries on Nov. 4 agreed to sign the trade deal in 2020. Prospective signatory India has for now opted out due to concerns about the deal’s potential repercussions on vulnerable sectors like farmers and small businesses. But the door remains open until participating countries resolve such issues in a “mutually satisfactory way.”
Philippines lifts restriction on rice imports from Thailand The Thaiger 1st Nov 2019
The Philippines has suspended a trial measure put in place to control imports of Thai rice following objections from Bangkok. The measure was initially put in place after the Philippine Department of Agriculture deemed existing regulations too lax. Rice imports had been under the control of the country’s National Food Authority until the government took over and attempted to impose tougher restrictions. The Nation reports that Keerati Rushchano, an inspector-general at the Commerce Ministry and Acting Director-General of the Department of Foreign Trade, says officials attended a meeting in the Philippines on October 24 with the aim of setting up a regional “economic development cluster”.
National Affairs
EDITORIAL – Clarify her role philstar.com 18th Nov 2019
Probably because no one expected her to accept the offer, the powers and functions of the new anti-drug czar remain unclear. And because the powers and functions have not been clearly delineated, the co-chairs of the Inter-Agency Committee Against Illegal Drugs are groping their way along, with tension appearing to develop between ICAD members and their new boss, Vice President Leni Robredo. While the executive order released by Malacañang designated Robredo as co-chairperson of Director General Aaron Aquino of the Philippine Drug Enforcement Agency, the country’s second highest official clearly outranks the PDEA chief and all the other ICAD members of Cabinet rank.
ADB approves $300-million anti-poverty loan to LGUs | Cai Ordinario BusinessMirror 15th Nov 2019
The Asian Development Bank (ADB) has approved a $300- million policy-based loan to support local government units (LGUs) boost economic growth and reduce poverty. The loan will be used for the Local Governance Reform Program (LGRP) subprogram, which aims to equip LGUs with the ability to deliver better government services. Improved government services can lead to simpler and investor-friendly business processes. This can lead to more jobs and poverty reduction.
ADB okays $300-M loan to help LGU improve services Manila Bulletin 14th Nov 2019
The Manila-based multilateral institution said yesterday that it approved a $300 million loan under the ADB’s local governance reform program (LGRP) aiming to empower and equipping LGUs to meet the needs of their citizens. The LGRP is also aimed at ensuring LGUs can deliver services aligned with local preferences, improve their capacity to raise their own revenue, and lower the cost of doing business for the private sector. Jose Antonio Tan III, ADB’s Southeast Asia Regional department director, said the bank supports the government’s goal of creating a high-trust society, where citizens have confidence in the capacity of local government institutions.
Longer terms for barangay execs seen to favor polls in 2022 | Samuel P. Medenilla BusinessMirror 12th Nov 2019
WITH the longer terms for incumbent barangay officials comes the greater risk they will be tapped to campaign for would-be candidates for the 2022 polls, a poll watchdog has warned. The National Movement for Free Elections (Namfrel) issued the concern on Monday with the looming postponement of the 2020 Barangay and Sangguniang Kabataan Election (BSKE). Namfrel Secretary-General Eric Alvia said this will give assurances to those running for 2022 elections that their campaign “infrastructure” at the grassroots level will already be in place.
Big Business pools resources for Mindanao Philippine Star 6th Nov 2019
The country’s conglomerates and different businesses are pooling their resources to help victims of the series of earthquakes in Mindanao. The Philippine Disaster Resilience Foundation (PDRF), a private sector-led group for disaster management chaired by Archbishop Luis Antonio Cardinal Tagle, Manuel V. Pangilinan and Jaime Augusto Zobel de Ayala, led the initiative.The PDRF has released an initial list of companies and foundations responding to help the families affected by the Mindanao earthquakes. The groups that comprise the initial list are AirAsia, which has provided flights to transport relief goods and tents; drinking water from Maynilad; Aboitiz Foundation and Aboitiz Power which launched relief operations; AirBnb Foundation, which provided accommodations for PDRF ground team; Air 21, which provided aviation transportation and portalets and Ayala Foundation which participated in rehabilitation efforts.Other companies and groups included Cebuana Lhuillier, Coca Cola Foundation, Energy Development Corp., Globe Telecom, Jollibee Group Foundation, Makati Medical Center Foundation, Manila Water, Maynilad, Metro Pacific Foundation, One Meralco Foundation, Pepsi Cola Products, Lucio Tan-owned Philippine Air Lines, Smart Communications and Tzu Chi Foundation.
Leni: Thanks, but no thanks Malaya 5th Nov 2019
STILL doubting the sincerity of the offer, Vice President Leni Robredo does not seem inclined to accept President Duterte’s offer for her to co-chair the inter-agency body that oversees the government’s war against illegal drugs. Lawyer Barry Gutierrez, spokesman of Robredo, said the Vice President cannot entertain Duterte’s appointment as of now because the position of co-chairperson of the Inter-Agency Committee on Anti-Illegal Drugs (ICAD) does not legally exist. Gutierrez said the Vice President, in her present capacity, will write the President to make specific recommendations to help the administration “address the failings of the current campaign.”
Philippines among countries most threatened by rising seas, says new study Inquirer 5th Nov 2019
The Philippines is one of eight Asian countries most threatened by coastal flooding due to increasingly higher tides in the coming mid-century, a new study found. The rising seas could affect three times more people than previously thought, and could even erase some of the world’s great coastal cities by 2050, according to a study produced by Climate Central and published on the journal Nature Communications, as per New York Times on Oct. 29. The study shows that about 150 million people currently live in areas set to be submerged by 2050, and about 70% of these people at risk are in the Philippines, China, Japan, Vietnam, Bangladesh, Indonesia, India and Thailand.
BREAKING: Duterte appoints Robredo co-chair of gov’t committee vs illegal drugs Inquirer 5th Nov 2019
President Rodrigo Duterte has appointed Vice President Leni Robredo as the co-chairperson of the Inter-Agency Committee on Anti-Illegal Drugs (ICAD), Malacañang said Tuesday. Duterte signed Robredo’s appointment paper on October 31. Under the EO, the Philippine Drug Enforcement Agency heads the committee with 20 government agencies as members. Robredo’s appointment came days after the President offered the Vice President to be his drug czar and give her “full powers” to run the government’s war on drugs for six months.
VP Robredo named co-chair of drug committee BusinessWorld 5th Nov 2019
VICE PRESIDENT Maria Leonor G. Robredo has been appointed by President Rodrigo R. Duterte as co-chair of the inter-agency committee handling his drug war. In an appointment paper released by the Palace on Tuesday, Executive Secretary Salvador C. Medialdea designates Ms. Robredo “as Co-Chairperson of the Inter-Agency Committee on Anti-Illegal Drugs (ICAD).” The appointment comes less than a week after Mr. Duterte, in a speech in Malacañang on Oct. 28 and an interview with reporters after the event, said he will give the vice president authority over the anti-drug operations.
Putin accepts Duterte invite for 1st Philippine visit Philippine Star 26th Oct 2019
Russian ambassador to the Philippines Igor Khovaev is hopeful that President Vladimir Putin would visit the Philippines “as soon as possible.” Speaking at a forum in Quezon City yesterday, Khovaev said Putin has accepted with gratitude the invitation of President Duterte for him to visit the Philippines. “This is very important. The invitation of President Duterte has been accepted by President Putin with gratitude,” he said. Khovaev reiterated Russia’s commitment to help the Philippines in various fields, including strengthening its defense capabilities.
Water interruptions start Philippine Star 25th Oct 2019
People waited in line to fill up water containers while hospitals and other establishments stored water as Maynilad Water Services Inc. and Manila Water Co. Inc. began rotational service interruptions yesterday. The service interruptions were re-implemented in some portions of the concession areas due to the decreasing level of Angat Dam, the main water source for Metro Manila. Maynilad-affected areas are Navotas, Muntinlupa, Manila, Malabon, Makati, Las Piñas, Caloocan, Parañaque, Pasay, Quezon City and Valenzuela. The MWSS, meanwhile, said that the interruptions are necessary because they need to preserve the main water source until summer next year.
Ombudsman rebuked over non-release of President, VP’s SALNs Philippine Star 24th Oct 2019
Former Ombudsman Conchita Carpio-Morales yesterday maintained that the sitting ombudsman has the authority to release the statement of assets, liabilities and net worth (SALN) of government officials, including the country’s president and vice president, contrary to the remark of her successor Samuel Martires. Under Memorandum Circular No. 6 Series of 2012, issued by Morales, SALNs filed with the Office of the Ombudsman “shall be made available to the public for inspection and reproduction after ten working days from the time they are filed.”?Early this year, however, Martires declared that he is suspending the release to the media of the 2018 SALNs of President Duterte, Vice President Leni Robredo and other government officials, saying that his office is currently reviewing and revising its policy on public access to SALNs.
Diosdado Peralta is new supreme Court Chief Justice Rappler 23rd Oct 2019
President Rodrigo Duterte appointed Diosdado Peralta as the new chief justice, Malacañang announced on Wednesday, October 23.Peralta will serve as chief justice until his retirement on March 27, 2022. This means that Duterte would have the power to appoint his replacement, who will serve beyond his term, because there is no midnight appointments ban in the High Court. "Peralta clinched the coveted appointment after 3 tries. He is also the most senior justice on the bench after Senior Associate Justice Antonio Carpio, who will retire on October 26. Peralta edged out Associate Justices Estela Perlas Bernabe and Andres Reyes Jr for the chief justice post.
ASEAN
South China Sea Code of Conduct seen part of Asean Summit talks | Bernadette D. Nicolas BusinessMirror 29th Oct 2019
PRESIDENT Duterte is expected to once again raise the need for a Code of Conduct (COC) in the South China Sea in the 35th Association of Southeast Asian Nations (Asean) Summit and Related Summits in Thailand this week. Foreign Affairs Assistant Secretary Junever M. Mahilum-West told Palace reporters on Monday that it is “unavoidable” the COC will be discussed by the world leaders in one of the meetings during the Asean Summit. However, Mahilum-West said they don’t expect this matter to be discussed extensively.
Banking
BSP plans to allow banks to set up Islamic banking units BusinessWorld 28th Oct 2019
THE BANGKO SENTRAL ng Pilipinas (BSP) is leaning toward allowing local lenders to set up Islamic banking subsidiaries, as it steps up efforts to promote Shariah-compliant finance in the country. “The BSP is pushing for an open approach where conventional banks can operate Islamic banking windows or to establish subsidiary Islamic banks,” the central bank’s Deputy Governor Chuchi G. Fonacier told Bloomberg News via e-mail. The government passed a law in August to promote Islamic finance, which represents a small proportion of the banking industry even though about 10% of the population is Muslim. The country has 45 universal and commercial bank groups, only one of which — the Al-Amanah Islamic Investment Bank of the Philippines — operates under Shariah principles
Customs
DTI eyes safeguard measure on imported cars Business Mirror 11th Nov 2019
THE Department of Trade and Industry (DTI) is seriously considering the imposition of a safeguard measure on imported vehicles, targeting mostly units coming from Thailand and Indonesia, to compel automotive manufacturers to locate operations and create jobs here. Trade Undersecretary Ceferino S. Rodolfo said the DTI is studying option of applying tariff on vehicle imports from Southeast Asian economies—enjoying duty-free privilege at present—and raising the rate for those shipped from outside the region. He said the move was triggered by the petition filed by trade union Philippine Metalworkers’ Alliance (PMA), which lamented the declining employment in the automotive industry, particularly in manufacturing. According to Rodolfo, PMA lodged the petition to impose a safeguard measure on automobile to stop the alleged import surge of the product. Car makers are reportedly choosing Thailand and Indonesia as their investment destinations in Southeast Asia, as they can just ship units to the Philippines at zero duty under the region’s trade deal.
FedEx confirms return to PHL GMA News Online 6th Nov 2019
FedEx Corp. on Wednesday confirmed plans to return its operations in the Philippines ten years after it closed its site in Subic, Zambales. “Our planned operations in Clark will enable us to better serve our customers in the Philippines and are part of our ongoing expansion throughout the Asia Pacific region as our business continues to grow,” John Peterson, managing director of FedEx Express Philippines, said in a statement. This time, the FedEx operations in the Philippines is going to be bigger in scale, the envoy said. In 2009, FedEx closed its Asian hub in Subic as the logistics giant transferred its regional operations in Guangzhou, China. Its return to the Philippines does not necessarily mean it is moving out of China.
Cigarettes, medicine top counterfeit goods entering the Philippines Business World 25th Oct 2019
Cigarettes and alcohol remain the top counterfeit goods being smuggled into the Philippines, followed closely by fake medicines and personal care products, according to the running tally of the International Property Office of the Philippines (IPOPHL). Chester Arturo D. Cinco, a division chief with IPOPHL’s Bureau of Trademarks, said it has so far recorded P1.8 billion worth of fake products seized by various government agencies. Of the total, cigarettes and alcohol accounted for about P456 million, followed closely by pharmaceuticals and personal care products at P455 million. The others are handbags and wallets, P449 million; optical media products, P190 million; and footwear, P130 million.
Defense & Security
Duterte signs EO for financial grant to CAFGUs Philippine Star 15th Nov 2019
President Duterte has ordered the release of over P130 million for a monthly P2,000 financial grant for each member of the Citizen Armed Forces Geographical Unit (CAFGU) to recognize their contributions to the government’s fight against insurgency and local terrorism. Under Executive Order 94, Duterte pushed for the grant of financial support starting July 1 this year for every member of the CAFGU Active Auxiliary (CAA). Only duly appointed members of the CAA units appearing in the roster maintained by the Armed Forces of the Philippines and those who are actually rendering services shall be entitled to the financial support Read more at https://www.philstar.com/headlines/2019/11/15/1969008/duterte-signs-eo-f...
Lorenzana warns of arrival of IS terrorists in PH from Middle East Manila Times 13th Nov 2019
IS terrorists expected to arrive in the Philippines from the Middle East after the group’s known territories in the war-torn region have dwindled, Defense Secretary Delfin Lorenzana said on Tuesday. Lorenzana said the list, which foreign intelligence sources gave him, contained the names of terrorists with Southeast Asian descent and one was identified as a Filipino. Others were Malaysians and Indonesians. “In that list that is so long, only one terrorist who is a Filipino is there. The danger here is that those returning to Malaysia and Indonesia may opt to transfer to Mindanao which is what we are guarding,” the Defense chief said in an interview over Radyo Singko. “There are many of them (Malaysian and Indonesian terrorists) and recently, our troops have been arresting terrorists that are foreigners,” Lorenzana said. IS terrorists from the Middle East have begun to return to their respective home countries, according to Lorenzana, citing statements from European and Middle East-based experts.
VP’s drug war to be relentless’ Philippine Star 13th Nov 2019
Barry Gutierrez said Robredo would be “unrelenting” in going after large-scale traffickers and the drug war would be pursued “with the same intensity and the same vigor” as in the recent past, but with less bloodiness. “Definitely she will not be soft,” Gutierrez told “The Chiefs” last Monday on Cignal TV’s One News, as he described as “counterproductive and very very premature” criticisms of her new role in fighting illegal drugs. Addressing the Women Today forum organized by The Philippine STAR yesterday at the Marriott hotel, Robredo disclosed that “I accepted the challenge against the advice of everyone, including my children.” “I needed to do this sacrifice for the greater good,” Robredo said.
PNP backs lifting of Martial Law in Mindanao Philippine Star 13th Nov 2019
Like the defense chief, the Philippine National Police (PNP) sees no need for another extension of martial law in Mindanao.Defense Secretary Delfin Lorenzana on Monday said he is not keen on further extending martial law in Mindanao for another year. The entire Mindanao region was placed under martial law following the siege of Marawi City from May to October 2017. The third extension will expire on Dec. 31 this year. The PNP will submit its recommendation before the National Security Council next month on whether martial law in Mindanao should be extended, Banac said. On the other hand, Senate Minority Leader Franklin Drilon called on the government not to extend the existing martial law in Mindanao. “It is high time that we bring back normalcy in the region… Do not dangle lifting martial law in Mindanao in exchange for the speedy passage of the Human Security Act,” Drilon said, reacting to the statements made by Lorenzana that another extension would not be necessary if Congress amends the Human Security Act.
Lorenzana not in favor of extending martial law | Rene Acosta BusinessMirror 12th Nov 2019
DEFENSE Secretary Delfin Lorenzana is not in favor of further extending martial law in Mindanao, but said this would still depend upon the recommendation of the Philippine National Police (PNP) and the Armed Forces of the Philippines. The martial rule in Mindanao, imposed by President Duterte in 2017 right after Islamic State-inspired homegrown terrorists took Marawi City, is set to expire next month, with local officials divided whether it should be extended or not. “We are waiting for the recommendation of the Armed Forces and the PNP. It depends upon their recommendation. But for me alone, I will not recommend anymore the extension,” Lorenzana said.
Stopping drug deaths impossible – PDEA Manila Times 11th Nov 2019
Philippine Drug Enforcement Agency (PDEA) Director General Aaron Aquino threw a dampener on the plan of Vice President Ma. Leonor Robredo to halt drug-related killings, saying it would be impossible to stop the bloodshed. Aquino, who invited Robredo to join police operations against illegal drugs, said on Sunday that killings would continue because most drug suspects opt to engage lawmen in a firefight. Robredo, who presided over her first meeting as co-chairman of the Inter-Agency Committee on Anti-Illegal Drugs (ICAD) on Friday, had pledged to stop drug-related killings.
19 senators sign report vs Albayalde, 'ninja cops' RAppler 6th Nov 2019
Majority of the senators signed the committee report recommending the filing of criminal charges against resigned top cop Oscar Albayalde and the 13 "ninja cops" tagged in an anomalous anti-drug operations in 2013.Senator Richard Gordon, the chairperson of the Senate justice and blue ribbon committees, filed Committee Report 17 on Tuesday, November 5, after the marathon hearings on the rogue cops. A total of 19 senators signed the report. A simple majority or 13 votes is needed for the report to be adopted by the Senate.The Senate panels on justice, blue ribbon, and Constitutional amendments and revision of codes found that Albayalde and his men violated Republic Act (RA) No. 9165 or the Comprehensive Dangerous Drugs Act. Gordon had also said that Albayalde was also guilty of violating RA No. 3019 or the Anti-Graft and Corrupt Practices Act when he asked Philippine Drug Enforcement Agency chief Aaron Aquino, who was then the head of Central Luzon police, not to implement the dismissal order against the 13 cops.
Philippines to lift moratorium on foreign research ships in its waters Reuters 28th Oct 2019
The Philippines will lift a 2018 moratorium on foreign scientific research in its exclusive economic zone so it can exploit marine resources, the national security adviser said on Friday. President Rodrigo Duterte banned all scientific research by foreigners off the Philippines’ Pacific coast in February last year and told the navy to chase away unauthorized vessels. National security adviser Hermogenes Esperon said that allowing foreign governments and entities to conduct maritime research again is “good for us... because we get to know more of the maritime domain”.
What’s Behind the New Japan-Philippines Defense Industry Forum? The Diplomat 24th Oct 2019
Earlier this month, Japan and the Philippines finally held the first iteration of their new defense industry forum. Although the mechanism is just one of many developments their relationship, it is not without significance for their security ties as well as for the broader bilateral relationship more generally.
New Missile-Armed Attack Craft Puts Philippine Military Modernization Into Focus The Diplomat 24th Oct 2019
Last week, the Philippine Navy made an announcement surrounding the future integration of a new missile system into its capabilities. The announcement marked another signpost in this aspect of the Southeast Asian state’s military modernization under President Rodrigo Duterte.
Philippines Cozies up to India, Both Wary of China VOA 23rd Oct 2019
The Philippines has agreed to strengthen defense ties with India, an increasingly significant Western ally in Asia, as part of its accumulation of foreign support in case fragile ties with China suddenly break down. [...] Philippine President Rodrigo Duterte welcomed India’s role in a Philippine program to upgrade defense, the presidential office said in a statement Saturday after a visit by Indian President Ram Nath Kovind.
Economics
Neda: GDP to grow faster in Q4, but full-year goal iffy Business Mirror 11th Nov 2019
National Economic and Development Authority (Neda) remains confident that the country’s economy will expand faster in the last quarter of the year, but the numbers may fall short of the government’s target. Socioeconomic Planning Secretary Ernesto M. Pernia told reporters recently that his “fearless forecast” is for fourth-quarter GDP to increase by 6.5 percent to 7 percent. As GDP growth in January to September averaged 5.8 percent, Pernia said the economy must grow by 6.7 percent to hit the low-end target of the government’s target of 6 percent to 7 percent for the year. The biggest threat to the Philippine economy, he said, will come from outside of the country’s borders. “I think the trade tensions, the trade war between the United States and China is really the biggest risk not just for the Philippines but also for the whole global economy.”Domestic concerns, such as the outbreak of African swine fever (ASF), will not have a big impact on GDP, according to Pernia.
FDI net inflows fall for 6th month in Aug. BusinessWorld 11th Nov 2019
FOREIGN direct investment (FDI) inflows dropped year-on-year for the sixth month in a row in August, according to data which the Bangko Sentral ng Pilipinas (BSP) released on Monday. Economists blamed generally weak investor sentiment abroad and persistent uncertainty as the government continues to overhaul tax incentives. The central bank reported that FDI net inflow sank by 45.1% to $416 million in August from $758 million a year ago and by 23.39% from July’s $543 million.
ASEAN FDI Inflows at record $155 in 2018; PHL fifth Business World 6th Nov 2019
THE Philippines was fifth among regional economies in attracting foreign direct investment (FDI) in 2018, with the region taking in a record $155 billion overall, equivalent to 11.5% of the global total, up from 9.6% in 2017. The data were contained in the Association of Southeast Asian Nations (ASEAN) ASEAN Investment Report, which showed increased FDI inflows for a third year. The Philippines was fifth among the 10 ASEAN economies, taking in $9.8 billion. Around half of FDI inflows in 2018 went to Singapore, with $77.6 billion. Indonesia, Vietnam, and Thailand rounded out the top four. The Bangko Sentral ng Pilipinas has said that Philippine FDI inflows have been increasing since 2014, hitting $10.2 billion in 2017 from $5.7 billion three years before. According to the ASEAN report, FDI to the Philippines was flat due to a significant decline in investment from Europe and the United States.
Oct. inflation slowest in 3-1/2 years Business World 6th Nov 2019
THE OVERALL rise in prices of widely used goods eased for the fifth straight month to its slowest pace in nearly three-and-a-half years in October, the Philippine Statistics Authority (PSA) reported on Tuesday, citing year-on-year drops for the heavily weighted food and non-alcoholic beverages, transportation and utilities. At the same time, some regions saw an uptick in food prices as people sought pork substitutes amid the African Swine Fever (ASF) onslaught. October saw headline inflation slow further to 0.8% from September’s 0.9% — thus marking the second straight month of below-one percent inflation — and the 6.7% a year ago that was sustained from September and was a nine-year peak. October’s reading was the slowest since April 2016’s 0.7%.
PHL fails in ‘control of corruption,’ but passes more than half of MCC indicators Business World 6th Nov 2019
THE PHILIPPINES failed in nearly half of indicators tracked by a US foreign assistance agency, with the country’s failure particularly in “control of corruption” putting at risk its chances of becoming eligible for grants under this program next year. The Millennium Challenge Corp. (MCC) scorecard for the Philippines for next year showed that the country passed 12 of 20 indicators used to determine eligibility for grants under its program. The MCC released the 2020 country scorecards on Nov. 1. “MCC scorecards are a key component in the agency’s annual competitive selection process that determines which countries are eligible to develop compacts — grant investments that last five years,” the agency said in a statement on its Web site. Formed in 2004, the MCC provides grants aimed at promoting economic growth, reducing poverty and strengthening institutions. Sought for comment, Socioeconomic Planning Secretary Ernesto M. Pernia said in a mobile phone message: “It means the Philippines can’t avail itself of MCC funding. But it’s not critically important as we have several other funding sources.”
Salty food next on tax authorities’ radar BusinessWorld 4th Nov 2019
THE Department of Finance (DoF) said it is studying proposals to tax salty food as a health measure, including the practicalities of such a scheme and its possible impact on inflation. In a phone message yesterday, Finance Undersecretary and chief economist Gil S. Beltran said the department is studying a taxation proposal based on salt content put forward by the Department of Health (DoH).
Government outstanding debt rises 10.4% at end-Sept. BusinessWorld 4th Nov 2019
THE national government’s outstanding debt was P7.907 trillion at the end of September, up 10.4% year-on-year, the Bureau of the Treasury (BTr) said. BTr said Monday that debt at the end of September fell 0.4% compared with the end of August due to a stronger peso and net repayment of both external and domestic loans. “…the lower level of domestic debt was due to the combined net redemption of government securities amounting to P14.37 billion and P170 million effect of peso appreciation on onshore dollar bonds,” BTr said in a statement. The Bureau said that 66.49% of the outstanding debt or P5.257 trillion was owed to domestic creditors. Domestic borrowing rose 14.6% from a year earlier, but was down 0.3% from August.
DoF’s Dominguez sees 2019 GDP at low end of 6-7% target range BusinessWorld 4th Nov 2019
FINANCE Secretary Carlos G. Dominguez III said economic growth in 2019 will come in at the lower end of the government’s target range of 6-7%, ahead of the third quarter GDP announcement this week. Mr. Dominguez, who was in Thailand to attend the 35th ASEAN Summit alongside President Rodrigo R. Duterte and other Cabinet members, told reporters that at the lower end of the range, GDP growth will still be encouraging in the context of setbacks to growth due to the delayed National Budget, which caused the government to miss the ideal weather conditions for major construction programs.
Japanese firms present PHL investment plans worth $215M BusinessWorld 4th Nov 2019
THE Department of Trade and Industry (DTI) said it heard proposals for potential investments worth $215 million from Japanese companies at the Philippine-Japan Business Investment Forum. In a statement Monday, DTI said the proposals emerged over the course of eight investment meetings in Japan and cover the infrastructure, railways, electric vehicle (EV) public transport systems, retail, manufacturing, logistics, warehousing, factory automation, construction, and real estate sectors. Proposals were heard from MOS Food Services, Inc., which operates Japan’s second-largest burger chain MOS Burger, which hopes to open in the Philippines in March, Assemblepoint Co. Ltd., which is developing a smart four-wheel electric vehicle, and Satelight, Inc., an animation studio looking into outsourcing in the Philippines. Sumitomo Wiring System Ltd. presented two expansion projects for it Philippine unit covering wire harnesses — a key component in the auto parts industry — as well as other parts. Marubeni Corp. made a presentation about its joint venture project with Metro Pacific Investment Corp. and Japan’s LSI Medience Corp. to build 30 primary care clinics and 10 cancer centers, and install five centralized laboratory testing hubs in key cities.
Economists see pickup in GDP growth BusinessWorld 3rd Nov 2019
THE COUNTRY’s economic growth should have recovered in the third quarter on the back of household consumption and improved government spending, according to economists asked by BusinessWorld late last week, but hitting the government’s full-year target will likely still be a challenge. A poll of 13 economists yielded a gross domestic product (GDP) growth estimate median of six percent for the third quarter, edging up from the second quarter’s 5.5% and January-March’s 5.6%. If realized, the third-quarter estimate would match the actual reading the past year and will put the nine-month average at 5.7% — after last semester’s 5.5% average — against a 6-7% official target for the entire year.
Poll bares outlook of even slower inflation in Oct. BusinessWorld 3rd Nov 2019
INFLATION likely slowed further in October as a continued easing of prices of rice and fuel offset any upside pressure from pork substitutes amid the onslaught of African swine fever (ASF), according to a poll of 14 economists conducted late last week. The analysts also noted that base effects from the nine-year-high 6.7% headline inflation recorded in September and sustained in October last year also pushed inflation lower last month. At the same time, they expect price pressures to pick up in this year’s remaining two months as base effects subside and consumption picks up ahead of Christmas.
Bill creating cash transfer scheme for rice farmers filed in Senate BusinessWorld 3rd Nov 2019
A BILL establishing a conditional cash transfer program for Filipino farmers has been filed in the Senate. Senate President Pro Tempore Ralph G. Recto, in Senate Bill No. 1074, proposed to create the Pantawid Magsasakang Pilipino Program as a national strategy to address rural poverty. “These interventions are sought in cognizance of the short-term obligation to mitigate the abrupt reduction of farmer incomes caused by the rescission of quantitative rice import restrictions,” Mr. Recto said in the explanatory note. The program will cover farmers or rice farming households classified as poor or near-poor by the Philippine Statistics Authority.
Shipping price regulation order still subject to consultation BusinessWorld 3rd Nov 2019
THE government’s bid to regulate the rates charged by shipping lines may have to wait longer as the Department of Finance (DoF) makes its final revisions for the proposed joint administrative order (JAO). Asked about the status of the JAO draft, Finance Assistant Secretary Antonio Joselito G . Lambino II said last week that the department cannot give a timeline yet as meetings with stakeholders are still ongoing. “Meetings are still ongoing,” Mr. Lambino said in a mobile phone message, adding that “[there is] no information yet on the timeline.” Finance Undersecretary Antonette C. Tionko said that the Bureau of Customs (BoC) is still “coordinating with the Philippine Ports Authority, the Maritime Industry Authority as well as the Department of Trade and Industry (DTI),” which heads the initiative.
Peso to climb on inflation, GDP BusinessWorld 3rd Nov 2019
THE PESO may strengthen this week on the back of expectations of lower inflation and faster economic growth. The local unit closed at P50.74 against the greenback on Thursday, stronger by 14 centavos from the P50.885-a-dollar close on Wednesday. The peso gained 50 centavos week-on-week from its P51.24 finish on Oct. 24. Dollars traded on Thursday grew to $1.16 billion from $1.049 billion on Wednesday. A trader said the peso’s performance last week was driven by the rate cut made by the US Federal Reserve.
Philippine inflation seen easing for fifth straight month in October: Reuters poll WTVB 3rd Nov 2019
Philippine annual inflation likely eased for a fifth straight month in October due to high base effects from the previous year as well as lower fuel and rice prices, a Reuters poll showed. The median forecast in a poll of 10 economists was for the consumer price index to have risen 0.8% in October from a year earlier, rising at its slowest annual pace in more than three years, and slowing from the previous month's 0.9%. If the forecast proves to be accurate, it would be the third month in a row that inflation has fallen below the central bank's 2%-4% target for the year. Annual inflation reached a near-decade peak of 6.7% in September and October last year due to a surge in global oil prices, but it has since declined, allowing the central bank to reverse some of last year's policy tightening.
Central bank eyes interest rate cap for lending firms BusinessWorld 28th Oct 2019
THE BANGKO SENTRAL ng Pilipinas is considering the imposition of a cap on interest rates and other fees that lending and financing companies charge on consumer and payday loans, in response to a request by the Securities and Exchange Commission (SEC). In a statement Monday, the country’s corporate regulator said it wrote to BSP Governor Benjamin E. Diokno on Oct. 8, asking for a limit on interest rates, fees and other charges that lending and financing companies impose on borrowers. In that letter, SEC Chairman Emilio B. Aquino cited high interest rates that reach 2.5% per day, on top of other fees and charges, as among complaints that the SEC receives.
Palace threatens ‘drastic action’ against water companies BusinessWorld 28th Oct 2019
PRESIDENT Rodrigo R. Duterte will take extreme action against water concessionaires that fail to address the ongoing water crisis, up to and including cancellation of their contracts, his spokesman said. In a briefing Monday, Salvador S. Panelo said water concessionaires need to “shape up or ship out” if they prolong the water crisis in Metro Manila and the government will be compelled to act against them. “I suppose the fact that they have not undertaken proper measures that will prevent the evolution of this upcoming crisis again would be a factor that would make the President decide on drastic action against them,” Mr. Panelo said, noting that Mr. Duterte has previously considered a course of action that includes “tanggalin yung kontrata” (contract cancellation). The two concessionaires responsible for providing water to the capital are Maynilad Water Services, Inc. (Maynilad) and Manila Water Co. (Manila Water). The crisis began earlier this year when water levels in Angat Dam, the ultimate source of the capital’s water, and La Mesa Dam, which is fed by Angat, fell below critical level. Water levels in Angat Dam continue to recede with the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) saying over the weekend that Angat’s water level is at 185.64 meters, down 0.23 meters from the day before but still a little above the critical level of 180 meters. The weather service added that it forecasts a water crisis in the next two months.
Private investment seen crucial to rural development, experts say BusinessWorld 28th Oct 2019
GOVERNMENTS need to find ways to attract private investment to rural communities, and need to recognize these communities’ potential for driving economic growth, experts told the Rural Development and Food Security Forum 2019 organized by the Asian Development Bank (ADB). “Rural demand spurs growth… This is where agriculture becomes very important. Moving beyond, it’s not just thinking that urban (communities) trigger demand, but realizing that rural communities are huge consumers and they are very large,” Mekhala Krishnamurthy, head of the Sociology/Anthropology department of India’s Ashoka University, said during the forum Monday in Pasig City. The three-day forum was organized by the ADB in partnership with the International Food Policy Research Institute (IFPRI) and the International Rice Research Institute (IRRI). ADB is urging members to pay more attention to rural development and promote effective land and water resources management, thereby enabling sustainable food production.
How does the Philippines compare with other economies in terms of ease of doing business? Business World 25th Oct 2019
DOING BUSINESS in the Philippines is easier now thanks to recent reforms, according to the World Bank Doing Business 2020 report.The country’s ranking rose to 95th place from 124th last year, while its score improved by several points to 62.8, the multilateral lender said yesterday. Despite the rank improvement, Manila was still seventh among 10 Southeast Asian Nations, behind Singapore which ranked second, Malaysia at No. 12, Thailand at 21st, Brunei at 66th, Vietnam at No. 70 and Indonesia at 73rd.It was only better than Cambodia (144), Laos (154) and Myanmar (165). The Philippines made it easier to start a business by abolishing the minimum capital requirement for domestic companies, said the World Bank, which used Quezon City as a benchmark. It also made dealing with construction permits easier by improving coordination and streamlining the process for obtaining an occupancy certificate.“The role of government policy in the daily operations of small and medium-sized domestic firms is a central focus of the Doing Business data,” the World Bank said. “The objective is to encourage regulation that is efficient, transparent, and easy to implement so that businesses can thrive.” REGULATORY REFORMS The Philippines was among 42 economies that made doing business “easier” in at least three out of 10 areas after enforcing regulatory reforms, the World Bank said. “The improvement in the ease of doing business score is used to identify the top improvers because it allows a focus on the absolute improvement — in contrast with the relative improvement shown by a change in rankings — that economies have made in their regulatory environment for business,” it added.
PHL jumps in EODB, but more reforms eyed Philippine Star 25th Oct 2019
THE Philippines has surged 29 notches to 95th among 190 economies in the World Bank’s ease of doing business (EODB) report on stronger minority investor protection, but industry leaders said much work needs to be done especially in contract enforcement. In the World Bank’s Doing Business 2020, the Philippines improved its score to 62.8, landing it in the 95th spot of the survey—the second time it got that ranking. Last year’s score was 57.68, a figure that plunged the country to 124th, from 113th in the 2018 edition. This time, the Philippines posted a double-digit upswing in the protecting minority investors indicator, as well as upticks in starting a business, dealing with construction permits and paying taxes. The country ranked 32nd in getting electricity; 65th in resolving insolvency; 72nd in protecting investors; 85th in dealing with construction permits; and 95th in paying taxes. However, Manila is lagging in terms of trading across borders (113th); registering property (120th); getting credit (132nd); enforcing contracts (152nd); and starting a business (171st
Philippines climbs to 95th spot in World Bank’s ‘Doing Business’ rankings philstar.com 24th Oct 2019
Ease of doing business in the Philippines improved over the past year, with the Southeast Asian country climbing 29 notches in World Bank’s “Doing Business 2020” report released Thursday. Out of 190 economies, the Philippines advanced to the 95th spot from 124th place in 2019. The country’s score improved to 62.8 from 60.9 previously. Compared to its peers in the East Asia Pacific, the Philippines ranked below Singapore (2nd), Hong Kong (3rd), Malaysia (12th), Taiwan (15th), Thailand (21st), China (31st), Brunei (66th), Vietnam (70th), Indonesia (73rd) and Mongolia (81st). The Washington-based multilateral lender’s annual report looks into the regulations that enhance business activity and those that constrain it.
Energy
Udenna buying Chevron’s stake in Malampaya Business Mirror 14th Nov 2019
A UNIT of Udenna Corp. has signed a sale and purchase agreement to acquire the 45% stake of Chevron Malampaya LLC in the deepwater gas-to-power project located offshore of northwest Palawan, Udenna Chairman and Chief Executive Officer Dennis A. Uy said in a statement on Wednesday. “The acquisition of Chevron’s interest in the Malampaya gas field marks an important milestone for Udenna, fitting strategically with our long-term ambitions of developing a sustainable clean energy business in the Philippines,” Udenna Chairman and Chief Executive Officer Dennis A. Uy said in a statement on Wednesday. The sale and purchase agreement was signed on Oct. 25 between the unit of Chevron Philippines, Ltd. and Udenna unit UC Malampaya Philippines Pte. Ltd. for the latter to acquire the full stake of the Malampaya project consortium partner.
Continued dev’t of Malampaya backed . Malaya 13th Nov 2019
A private company has offered to support the continued development of the Malampaya resources well after the current service contract of the gas find expires in 2024. Pangilinan-led oil and gas exploration firm PXP Energy Corp. has submitted an unsolicited proposal to the Department of Energy (DOE) for the strategic development and utilization of an integrated gas hub in the Malampaya project upon the expiry of its service contract (SC) in 2024. In a disclosure to the Philippine Stock Exchange, the company said it eyes the operations of the facility as it is strategically positioned in the West Philippine Sea where other prospects such as the Sampaguita Field and the entire SC 72 operated by PXP are also located. The Sampaguita prospect’s development was temporarily stopped in 2014 when the government suspended drilling activities in the Reed Bank amid a territorial dispute with China.
End-2019 goal: Break ground for 500 common telco towers Business Mirror 11th Nov 2019
BEFORE the year ends, the government will break ground for the construction of as many as 500 common towers, as the public and private sectors move hand in hand in leapfrogging to better telco services by 2020. Undersecretary Eliseo M. Rio Jr. of the Department of Information and Communications Technology (DICT) said his group has received half a thousand applications for common tower sites spread across the Philippines from five providers. Rio listed the five companies that sought the ICT department’s assistance for permitting as: the Aboitiz Group, IHS Group, LCS Holdings Inc., the Isoc-Edotco Group and American Towers. These common tower providers, he said, have received orders from the two incumbent telcos, PLDT Inc. and Globe Telecom Inc., as well as new-entrant Dito Telecommunity Corp.
More private firms seen joining ‘build, build, build’ Daily Inquirer 11th Nov 2019
Even with the tighter rules to be imposed on public-private partnership (PPP) projects, the country’s chief economist is optimistic that more private firms will participate in the Duterte administration’s ambitious “Build, Build, Build” infrastructure program. Socioeconomic Planning Secretary Ernesto M. Pernia told reporters last week that “they [the private sector] know already” that provisions deemed detrimental to the government would not be included in PPP contracts. The PPP guidelines to be issued by the government will also serve as a model for future contracts, especially for airports. “What we did for Bulacan, Clark and Bohol-Panglao [airports] will be the template for Davao and Laguindingan,” Pernia said, referring to the pending unsolicited proposals from Dennis Uy-led Chelsea Logistics and Infrastructure Holdings Corp. and the Aboitiz Group, respectively. But Pernia said regional airports would no longer be lumped together into a single PPP project, as was done during the previous administration. Last week, presidential adviser for flagship programs and projects Vivencio Dizon told the Inquirer that the Aboitiz Group’s unsolicited proposal to operate and maintain the New Panglao Bohol International Airport, the San Miguel Corp. (SMC)-led Bulacan International Airport and the rehabilitation of the country’s main gateway, Ninoy Aquino International Airport, to be undertaken by seven conglomerates were among the 26 PPP projects included in the longer Build, Build, Build list that covered 100 projects. Dizon said other “major” unsolicited airport PPP projects were also made part of Build, Build, Build. Only nine of the original list of 75 projects had private sector participation—eight PPPs and one to be implemented by a private firm.
DOE set to issue new rules on power firms’ CSP after standoff with Meralco Business Mirror 11th Nov 2019
THE Department of Energy (DOE) is expected to issue new rules on the competitive selection process (CSP) to govern power firms that are engaged in both power generation and distribution. This proposal was raised by Energy Secretary Alfonso Cusi following the still unresolved issue on the rebidding of 1,200 megawatt (MW) greenfield power-supply requirement of the Manila Electric Co. (Meralco) via CSP. Cusi has provided inputs to Meralco on how the power-supply contract should be bidded out. Meralco, on the other hand, has insisted on its own terms of reference (TOR). Cusi said the agency received a letter from Meralco explaining why it prefers a new power plant, rather than existing power facilities, to supply the utility firm. There were also other concerns raised by Meralco in the letter.
Monopoly’ issue renders Aboitiz bid for Sangley iffy Business Mirror 11th Nov 2019
DUE to control issue and other factors, Aboitiz InfraCapital Inc. said it is not sure whether or not it will bid for the $10-billion Sangley International airport project. The company is among the members of the Naia Consortium that offers to rehabilitate and expand the country’s main aviation facility. Other members of the consortium are AC Infrastructure Holdings Corp., Alliance Global Group Inc., AEDC, Filinvest Development Corp., JG Summit Holdings Inc. and Metro Pacific Investments Corp. The possibility of a monopoly is, likewise, one of the concerns that Aboitiz InfraCapital is studying with regard to its participation in the auction, she added.
Philippines to present nuclear plan to IAEA BusinessWorld 31st Oct 2019
THE GOVERNMENT will present a plan to revive the country’s nuclear energy development program in a meeting next month with the United Nations’ International Atomic Energy Agency (IAEA), Energy Secretary Alfonso G. Cusi said at the handover event of the phase one report of the Integrated Nuclear Infrastructure Review (INIR) mission at the F1 Hotel Manila in Taguig City. The IAEA on Wednesday officially turned over to the Department of Energy (DoE) its 19-point INIR on the Philippines’ readiness to develop nuclear energy as a resource. It cited the Philippine government’s need to hold more public consultations, legislate a legal and regulatory framework, and address infrastructure and other concerns related to a nuclear power program.
MORE allots P1.7 billion for Iloilo power system BusinessWorld 28th Oct 2019
MORE Electric and Power Corp. has countered the projected capital outlay of Panay Electric Co., Inc. (PECO) with a bigger budget at a shorter period of P1.7 billion to upgrade the power distribution system of Iloilo City. Roel Z. Castro, president of MORE, said in a statement on Monday that the P1.1-billion capital expenditure of PECO for the next 10 years is “more or less” the amount it owed to the city’s electricity consumers. “So tama lang (So it’s just right that) they will pump it in because utang nila ’yan sa (they owe that to) consumers. In fact, they have to spend that in 10 weeks, not 10 years,” he added. Mr. Castro, who described PECO as “franchise-denied,” said consumers had been paying the amount for years, but the utility did not invest what was collected in the past. His statement is the latest in the exchange of words through media between MORE, the new utility franchise owner in Iloilo City, and PECO, the area’s distribution utility for 95 years whose franchise had expired.
Coal power plants flourish in the Philippines despite ‘climate emergency’ Mongabay Environmental News 28th Oct 2019
In 1996, when a community in the Philippine municipality of Pagbilao agreed to house a coal power plant a few hours’ drive from Manila, the residents had high hopes. The fishing town saw in the dominating edifice full-time jobs and food on the table, says Warren Puno of the Catholic diocese of Lucena, the provincial capital. What they didn’t expect, however, was for additional coal plants to follow suit. After Pagbilao, another power station mushroomed in the nearby municipality of Mauban in 2000; the two plants have a combined generating capacity of 1,594 megawatts, earning the region the title of the “coal corridor” of the Philippines as it’s the only province to house two major coal plants. They also make the region the biggest power producer for the grid that serves the central island group of Luzon. President Rodrigo Duterte inaugurated a third plant (the 21st nationwide) on Oct. 16, the 500 MW San Buenaventura Power facility in Mauban, citing the venture as a prime example of “clean coal technology” and a significant addition to the country’s green energy roadmap.
DOE explores potential of hydrogen as energy source Manila Bulletin 26th Oct 2019
The Department of Energy (DOE) is advancing pitch for hydrogen as added option for the future energy resources that can be utilized in the Philippine energy sector.Energy Secretary Alfonso G. Cusi indicated that the energy department had tapped a Japanese entity to study hydrogen as probable resource addition to comprise the country’s energy mix – whether for battery storage, alternative fuel for the transport sector or as tangible resource for power generation. Based on initial assessments of the Paris-based International Energy Agency (IEA), hydrogen could become “a critical part of a more sustainable and secure energy future,” especially when it reaches commercial-scale deployment in the energy sector. Prospects on hydrogen development as key facet of the world’s future energy mix took center stage when Japan hosted the G20 Summit in Osaka last June – with its Ministry of Economy, Trade and Industry (METI) taking the lead. The IEA noted that based on the “hydrogen study” of METI, it has been established that this technology option “is currently receiving strong support from governments and businesses around the world, with the number of policies and projects expanding rapidly.” In the Philippines, in particular, it’s the Royal Dutch Shell group that has been advancing the commercial deployment of hydrogen as a feasible resource to underpin the country’s future energy needs.
Financial Services
AN OASIS OF OPTIMISM’ Growth seen at 6% or faster till ’22 Malaya 15th Nov 2019
The economy, after its strong third quarter performance, will likely grow by 6 percent or higher for the rest of the administration’s term, despite the international trade friction and other global challenges, according to the Department of Finance (DOF). Carlos Dominguez, DOF secretary, said in his keynote speech before the Chief Executives Organization in Makati City last November 10 the country is “strong and ready to soar,” after posting 6.2 percent gross domestic product (GDP) growth in the third quarter this year.Dominguez invited the global business leaders present at the event to take a look at the opportunities that abound in the country.
BSP stays policy, cuts inflation forecast Business World 15th Nov 2019
THE BANGKO SENTRAL ng Pilipinas on Thursday kept monetary policy steady — as signaled earlier and expected by the market — and further cut its inflation forecast for the year.The BSP’s Monetary Board (MB) maintained benchmark interest rates for overnight reverse repurchase, as well as overnight deposit and lending at four percent, 3.5% and 4.5%, respectively, describing current settings as “appropriate” in the face of weak global economic prospects on the one hand, as well as “firm private domestic spending and sustained progress in policy reforms” that “will serve as a buffer against external headwinds.” “This is supported by the benign inflation outlook and a firm outlook for domestic economic growth. At the same time, a prudent pause in monetary adjustments will enable the cumulative 75-basis point reduction in policy rates as well as the cut in reserve requirement ratios to continue working their way through the economy,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a briefing Thursday afternoon.After raising benchmark interest rates by a total of 175 basis points last year in the face of successive multi-year-high inflation rates, the BSP has cut these rates by a cumulative 75 bp so far this year.
Fitch Solutions upgrades PHL growth outlook on stronger state spending Business Mirror 14th Nov 2019
FITCH SOLUTIONS raised its Philippine economic growth forecast, citing stronger economic expansion in the third quarter on faster government spending and strong household expenditures. Fitch Solutions now sees Philippine gross domestic product (GDP) growth this year at six percent, from 5.8% previously, on the back of a “strong rebound in government expenditure and the continued reliance of household confidence.” At the same time, it maintained its 2020 growth forecast at 6.1%. The government has GDP growth targets of 6-7% this year and 6.5-7.5% for next year.
Digital payment system to make doing business in PH easier inquirer.net 5th Nov 2019
The country’s leading digital financial services company, PayMaya, expects the Philippines to rank even higher next year in the World Bank’s Ease of Doing Business report, as more government agencies adopt digital transactions. This came following the announcement of the 29-notch jump in the country’s ranking in World Bank’s Doing Business 2020 report, which ranked the country 95th among 190 economies covered in terms of ease of doing business.
Insurance Commission releases guidelines on insurers’ dividends philstar.com 5th Nov 2019
The Insurance Commission (IC) has warned insurance companies that it cannot declare or distribute dividends unless they remain in good financial condition, and have complied with the paid-up capital and net worth requirements for players in the industry. This is pursuant to IC Circular Letter 2019-60, issued by Insurance Commissioner Dennis Funa on Oct. 30, 2019, providing the guidelines on insurance companies’ declaration and distribution of dividends, including cash, property or stock dividends.
Pacquiao, Ma partner for e-commerce venture in Philippines philstar.com 4th Nov 2019
World boxing idol and Senator Manny Pacquiao and Alibaba Group founder Jack Ma have agreed to work together to put up logistics and e-commerce hubs in the country that is expected to generate thousands of jobs. Pacquiao said Ma, who is also known as Ma Yun, has expressed his interest to invest in the Philippines to provide more employment for Filipinos. According to the boxing legislator, Ma, who is his personal friend, has been exchanging notes with him “for quite some time now” on how he could help the Philippines, especially in job-generation. Pacquiao went to Hangzhou, China last week to meet Ma to discuss the details on how to go about their new project. He said Ma is set to visit Pacquiao’s home in General Santos City, hopefully, within the year. The senator said they have agreed that the best way to do this is for them to partner in setting up logistics and e-commerce centers all over the Philippines.
Reporting rules for banks rationalized philstar.com 4th Nov 2019
The Bangko Sentral ng Piiipinas (BSP) has rationalized the prudential reporting requirements for banks as part of efforts to promote ease of doing business in the industry. BSP Governor Benjamin Diokno said the central bank’s Monetary Board, through Resolution No. 1479, approved the amendments to the (Reports Required of Banks) under Section 173 of the Manual of Regulations for Banks (MORB). Diokno said the changes are part of the report rationalization initiative of the central bank. The BSP chief said the regulator is continuously reviewing the prudential reports required from BSP supervised financial institutions (BSFls) to ensure that information being gathered remain relevant to the surveillance and supervisory functions of the central bank amid significant developments in the regulatory and business environment.
Demand for VUL insurance growing in the Philippines BusinessWorld 4th Nov 2019
MORE FILIPINOS are choosing to purchase variable unit linked (VUL) products over traditional life insurance, Manulife Philippines said, causing insurers to fine-tune their products to meet the growing demand. At the launch of the local unit of Canada-based Manulife Financial Corp.’s insurance product in Makati on Monday, Manulife Philippines Senior Vice President and Chief Marketing Officer Melissa Henson cited data from the Insurance Commission which showed that majority of the insurance policies sold last year were VUL products. “In 2018, 73% of policies sold were VUL. It’s actually industry-wide so most insurers these days sell more VUL than the traditional [insurance plans],” Ms. Henson said, noting that the most policies sold by Manulife in the year were also VUL.
Fintech dev’t seen to boost Philippine competitiveness ranking philstar.com 3rd Nov 2019
The country’s global competitiveness ranking, which saw a big drop this year, could get a significant boost with the development of the local financial technology (fintech) industry, the head of mobile wallet GCash said. GCash president Anthony Thomas said building a cashless ecosystem that enables the development of the digital economy across different industries would play a key role in improving the Philippines’ ranking in the Global Competitiveness Index of the World Economic Forum (WEF). “Fintech presents a wealth of opportunities and benefits for the overall economy. Aside from reducing corruption and charges attached to maintaining a paper-based payment system, fintech also promotes greater financial inclusion and enables government agencies and businesses to process transactions seamlessly. All these benefits will play a key role in improving the country’s competitiveness ranking,” Thomas said.
Philippines risks reinclusion in global dirty money watchlist Phil Star 27th Oct 2019
The Philippines is in danger of being included in the high risk and non-cooperative jurisdictions of the global anti-money laundering watchdog if it fails to address the weak areas in the country’s anti-money laundering and counter-terrorism financing (AML/CFT) campaign over the next 12 months. Bangko Sentral ng Pilipinas Governor Benjamin Diokno said the Financial Action Task Force (FATF) could again include the Philippines in the list of high risk and non-cooperative countries if it fails to hurdle the required reforms during the 12-month observation period set by the Asia Pacific Group on Money Laundering (APG). Despite the findings of the APG, Diokno said he remains optimistic the country’s weak AML/CFT areas would be addressed through perseverance as well as the reinforced AMLC Secretariat and closer link with partner agencies.
Reforms up with Libor phaseout Manila Bulletin 26th Oct 2019
The Bangko Sentral ng Pilipinas (BSP) and other affected central banks in the region will have to come up with alternative reference rates (ARRs) and risk-free rates (RFRs) with the discontinuation of the Libor (London inter-bank offered rate) in two years, and ensure markets are aware of benchmark reforms otherwise it could cause systemic risk in the region, a study by the Executives’ Meeting of East Asia-Pacific Central Banks (EMEAP) said. The study covered the 11 central banks of EMEAP and the implications of financial benchmark reforms after the Libor is phased out by 2021, as well as the implementation of EU Benchmarks Regulation (BMR) on EMEAP countries. In the Philippines, the financial benchmark reforms will affect the BSP’s PHIREF, BVAL Reference Rates, and the US dollar/Philippine peso fix by the Bankers Association of the Philippines. But based on the report, the BSP will retain local benchmarks. The central bank however did not identify an ARR.But, the EMEAP noted actions already taken by the BSP in dealing with benchmark reforms such as in issuing guidelines on marking-to-market financial instruments and “providing basis for establishment of reliable and market-based benchmarks.”
BSP makes unexpected RRR cut for banks Philippine Star 25th Oct 2019
The Bangko Sentral ng Pilipinas (BSP) delivered yesterday another surprise reduction in the level of deposits banks are required to keep with the central bank as part of efforts to boost economic activity. The BSP approved the reduction of the reserve requirement ratio (RRR) for big and mid-sized banks by another 100 basis points effective December. The announcement surprised the market as the earlier 100 basis points reduction in the RRR for universal, commercial, thrift as well as rural banks is scheduled to take effect in the first week of November.
BSP pulls off welcome surprise: Another cut in bank reserve requirements Phil Daily Inquirer 25th Oct 2019
The central bank on Thursday kept its reform market momentum moving while giving the Philippine economy a boost by reducing, again, the reserve requirement of local financial institutions by 100 basis points. The surprise move brought the total cuts made by the Bangko Sentral ng Pilipinas (BSP) to the amount of cash banks are required to keep intact by 4 percentage points since Governor Benjamin Diokno took over the BSP reins earlier this year. Each percentage point releases up to P100 million in cash into the financial system.
Philippines: Malaysian firm seeks Islamic partner and awaits takaful rules Asia Insurance Review 25th Oct 2019
Etiqa, the insurance arm of Malaysia's Maybank Group, is seeking to introduce takaful to the Philippines once it finds a local Islamic bank to partner with. However, Insurance Commissioner Dennis B Funa told the Inquirer that the regulator has yet to put in place takaful regulations. The Commission is eyeing amending the Insurance Code to allow takaful business to be carried out in the country.
Singapore Startup Fractal Inks Deal with Filipino Fintech to Serve the Country's Unbanked Population Entrepreneur 24th Oct 2019
Philippines-based online investment company Seedbox has partnered with Fractal, an identification management company, to provide Filipinos access to investment products, such as mutual funds, even if they do not have bank accounts. Seedbox says using Fractal’s identification solution, which includes bank-grade compliant ‘know your customer (KYC), and ‘anti-money laundering (AML) capabilities, the company will be able to extend investment services to 40,000 Filipinos per month via its online platform The tie-up would essentially solve a big problem for 45 per cent adults in the Philippines, who say documentation requirements are a major barrier to opening bank accounts, and 77 per cent Filipino adults who do not have bank accounts, Fractal said, citing data from World Bank’s Global Findex Database, and a Financial Inclusion Survey by the country’s central bank, both dated 2017. “Digital technologies are driving opportunities for much greater financial inclusion. By providing technology solutions to non-bank financial institutions, our ambition is to expedite the transition to a more open and interoperable financial ecosystem,” said Julian Leitloff, chief executive officer and founder of Fractal. Leitloff conceived the idea for Fractal after the 2008 collapse of Lehman Brothers, and Deutsche Bank, when he realised that the lack of anti-money laundering services was one of the reasons that cause unhealthy financial practices. “We want to help both users and companies achieve fast and accurate global verifications wherever they are and have a hassle-free experience when it comes to AML/KYC related requirements,” he added. Fractal also wants to solve the problem of high compliance costs across Asia, estimated at around $6.09 billion, as per LexisNexis 2019 estimates, and make AML compliance, which rose nearly 10 per cent over the last 24 months, cheaper. Banking Issues in Asia Are Not New Of the 400 million adults that live in Southeast Asia, only 104 million are fully “banked”, and have full access to financial services, which leaves 198 million people that do not have even rudimentary access to financial institutions, a recent joint study by Google, Temasek and Bain & Co showed. Very basic problems like infrastructure costs, absence of public registers and reliable credit information, along with stringent financial regulations, make it difficult for institutional banks and insurers to penetrate the region in a meaningful way. Fintech companies – much like Seedbox – have tried to plug that gap, and using Asia’s rapid tech innovation, boomed into a multi-billion dollar industry in the region, serving tech savvy millennials, and undocumented Asians alike. Digital payments are expected to cross $1 trillion by 2025 in Asia, and account for nearly one in two dollars spent in the region. The market for e-wallets is expected to grow even faster, from $22 billion in 2019, to $114 billion, a more than fivefold jump, by 2025, the Google joint study said.
Food & Agriculture
Reimburse farmers for P61-B income loss–Kiko | Butch Fernandez BusinessMirror 18th Nov 2019
MINORITY Sen.Francis Pangilinan has prodded the Duterte administration to reimburse farmers for their P61.77-billion in estimated losses from the sharp plunges in the farm-gate price of unhusked rice, as a surge of rice imports ensued with the passage of the rice trade liberalization law early this year.
PHL planters to plug sugar shortfall in 6 years | Jasper Y. Arcalas BusinessMirror 18th Nov 2019
Planters and other sugar industry stakeholders are targeting to craft a road map that will outline interventions for increasing annual output to meet all the requirements of the domestic market for the sweetener. The blueprint is being crafted in view of the proposed liberalization of the sugar industry by the Duterte administration’s economic managers, according to Sugar Regulatory Administration (SRA) Board Member Emilio Yulo.
Solon keen on special emergency fund for rice planters | Jasper Y. Arcalas BusinessMirror 18th Nov 2019
A leader of the House of Representative will file a measure that will allow the national government to use all tariff collections in excess of P10 billion for the Rice Competitiveness Enhancement Fund (RCEF) as direct cash transfers for planters. House of Representatives Deputy Speaker Luis Raymund Villafuerte said he will file a joint resolution this week to create a special emergency fund for farmers affected by the drop in farm-gate prices.
MinDA to set up community farms in areas hit by quake | Bernadette D. Nicolas BusinessMirror 18th Nov 2019
Community poultry and hog farms will soon be established in earthquake-hit areas in Mindanao via a program which will be rolled out by the Mindanao Development Authority (MinDA) and its partners, which incude Thailand’s biggest agricultural and food company. Apart from Charoen Pokphand Foods (CPF) Philippines, MinDA Chairman Emmanuel F. Piñol said the Development Bank of the Philippines (DBP) and a Mindanao agri-business firm will also participate in the program.
Gov’t tightens watch on imported rice Business Mirror 14th Nov 2019
THE GOVERNMENT is matching the rising importation of rice with stricter implementation of existing rules for sanitary permits. The Department of Agriculture issued on Nov. 12 Memorandum Order No. 28 on “Supplementary provisions to DA Department Circular No. 4, series of 2016, entitled ‘Guidelines on the importation of plants, planting materials and plant products for commercial purposes’.” Citing, among others, the “need to strengthen registration procedure for importers of plants, planting materials and plant products, and specify the validity of the sanitary and phytosanitary import clearance (SPSIC) to safeguard from entry, establishment and spread of exotic plant pests and comply with food safety requirements,” the order implements “revised requirements” in this regard.
ASF legacy: Shrunken pork supply at end-2019 | Jasper Y. Arcalas BusinessMirror 12th Nov 2019
THE world will end 2019 with a smaller pork supply as China, the biggest consumer of pork, continues to grapple with the fatal African swine fever (ASF) while the disease spreads to meat-loving Southeast Asian countries like the Philippines, the United Nations’ Food and Agriculture Organization (FAO) said. In its biannual “Food Outlook” report, the FAO forecast that global pork output this year would settle at 110.5 million metric tons (MMT), 8.5-percent lower than last year’s 120.7 MMT. The sheer decline in global pork output will pull down world total meat output for the first time in two decades to 335.2 MMT this year. The figure is a percent lower than last year’s estimated 338.6 MMT total global meat output.
Rice inventory up more than 43% at start of October amid harvest season BusinessWorld 11th Nov 2019
THE national rice inventory was estimated at 2.279 million metric tons (MMT) as of October 1, up 43.4% from a year earlier, and up 23.7% month-on-month, the Philippine Statistics Authority (PSA) said. The estimate was contained in the PSA’s Rice and Corn Stocks Inventory report. Rice inventory levels are sufficient for about 71 days’ consumption based on a daily average assumption of 32,000 MT. Some 46.12% of the rice inventory was held by households, 36.5% by commercial warehouses, and 17.3% by the National Food Authority (NFA). The PSA gave no breakdown of domestically grown against imported rice.
Golden Rice undergoing trials in Isabela, Nueva Ecija BusinessWorld 11th Nov 2019
GOLDEN RICE, developed by biotechnologists to address Vitamin A deficiency, is still in the process of completing field trials before it applies for permission to be commercially propagated, officials said, amid the risk that it could get caught up in a broader debate about the safety of genetically-modified foods. The Department of Agriculture’s Biotechnology Program Office (BPO) said the typical testing regime will take two years.
Now comes battle vs sugar imports Philippine Star 11th Nov 2019
With farmers protesting against the rice tarrification law, another battle has been launched – this time against plans to liberalize the importation of sugar. The Unyon ng Manggagawa sa Agrikultura (UMA) said yesterday stakeholders in the sugar industry have formed the Tanggol Asukal Network, whose “main aim is to create a mass movement against sugar import liberalization.” The network is expected to establish supporting groups in Cagayan Valley, Flores said. Flores noted that the network is also backed by the Federation of Free Workers, the Church Workers Solidarity (CWS), Ecumenical Institute for Labor Education and Research, Center for Trade Union and Human Rights, AMIHAN, Sugar Regulatory Administration, Bureau of Workers with Special Concerns and Institute for Labor Studies. Flores said Alminaza “raised the concern that the proposed unlimited liberalization of the sugar industry will only worsen the already dire living condition of farmers and farm workers and their families.”
Salt is not 'a sin,' groups opposed to tax to curb consumption of salty food stress philstar.com 5th Nov 2019
MANILA, Philippines — Days after the Department of Health proposed a tax to discourage the consumption of too much salty food, groups have called for the department to rethink its approach. The proposal came on the heels of a joint statement by the DOH, World Health Organization, the UN Development Programme and the UN Interagency Task Force that salty food is a major factor that increased the risk of non-communicable diseases that caused 68% of deaths in the country.
Former Health secretary urges DOH to rethink salt tax philstar.com 4th Nov 2019
Rep. Janette Garin (Iloilo ), a former Health secretary, called on the department she used to head to rethink its proposed salt tax because of the unique role it plays in the Filipino diet. She was referring to the proposal of Health Secretary Francisco Duque to impose a “sin tax” on salted products including dried fish, a staple for many Filipinos. “Salt, used moderately, aids our digestion and excretion. The unique identification of any Filipino household is marked [having] salt in our kitchen and eating tuyo, daing and bagoong to name a few,” said Garin, a former Health Secretary herself.
Philippine dairy imports to hit record high this year philstar.com 2nd Nov 2019
The Philippines is seen hiking its imports of dairy products by 21 percent this year amid increasing consumption coupled with favorable global prices, the United States Department of Agriculture (USDA) said. Based on the latest report of the USDA Foreign Agricultural Service (FAS), the country is expected to import a record 3.5 million metric tons of liquid milk equivalent this year, 21 percent higher than the 2.9 million MT LME in 2018. “Total imports in 2019 are projected to reach a record as shipments of nonfat and whole milk powder are spurred by favorable global dairy prices. Dairy imports in 2020 will likely increase marginally with dairy prices starting to recover,” USDA said.
Asia’s ‘farming crisis’ complicated–experts | Cai Ordinario BusinessMirror 29th Oct 2019
ASIAN countries face a farming crisis and no amount of income support will be enough to address the problems and risks faced by farmers, according to agriculture experts. In the Rural Development and Food Security Forum on Monday, Mekhala Krishnamurthy of the India-based Ashoka University said farmers face interlinked risks that have scale, frequency, complexity and are context-specific. Krishnamurthy said this is mainly due to land ownership and access insecurity; their being tenants and sharecroppers which prevents them from accessing inputs and credit; land fragmentation due to intergeneration transfers and urbanization, among others.
‘Ban on pork imports to curb raisers’ losses’ BusinessMirror 29th Oct 2019
A LEADER of the House of Representatives on Monday urged the government to impose a moratorium on the importation of all pork products to prevent hog raisers from incurring more losses due to African swine fever (ASF). House Deputy Speaker Conrado Estrella of Abono party-list noted that the local hog industry has absorbed over P1 billion in losses since the dreaded ASF struck hog farms in Luzon. “I think it is now time for government to impose a moratorium on pork product importation until we have completely cleared our pig farms of the ASF threat. We have to stop the bleeding before it’s too late,” said Estrella.
Bill outlines tax perks for corporate farming BusinessWorld 28th Oct 2019
A PARTY-LIST legislator representing farmers has filed a bill providing for incentives to companies that invest in contract farming with cooperatives or agrarian reform beneficiaries. Economic Affairs Committee chair and AAMBIS-Owa Rep. Sharon S. Garin filed House Bill No. 3369, which will become the Corporate Farming Program Act if passed. It lists tax incentives for corporations and partnerships that make such investments, including exemptions from custom duties and value added tax (VAT).
Philippines to nearly triple local rice purchases Bangkok Post 28th Oct 2019
The Philippine government will nearly treble rice purchases from local farmers this year, officials said on Monday, after it rejected a proposal last week to impose safeguard duty. The National Food Authority (NFA) said it will now buy up to 1.14 million tonnes of unmilled rice from local farmers, who were hurt by the removal of quantitative import restrictions, compared with the previous target of 389,000 tonnes. The state-run agency's purchases this year have already exceeded half of the new target, spokeswoman Rebecca Olarte said.
Economic managers thumb down safeguard duty on rice Philippine Daily Inquirer 25th Oct 2019
The country’s chief economist on Thursday said the plan by the Department of Agriculture (DA) to impose special safeguard duties or additional tariffs on rice—aimed at helping suffering palay farmers from the influx of imports—would never happen.Further rubbing salt to the wound, the head of the Duterte administration’s economic team said only “most affected” farmers would receive unconditional cash grants as palay prices were relatively stable in some provinces. “We in the economic team objected to it [rice safeguard duty] already. That’s not going to happen,” Socioeconomic Planning Secretary Ernesto M. Pernia told the Inquirer on the sidelines of the high-level meeting between the Philippine and Chinese governments in Manila.Pernia said: “I actually told [Agriculture Secretary William] Dar it’s uncalled for, especially this soon.”
DA eyes recall of Central Luzon-based meat products Business Mirror 25th Oct 2019
HE Department of Agriculture (DA) on Thursday said it would recommend the recall of processed meat products manufactured by a “medium-scale” Central Luzon-based processor after some of its items, like tocino and longganisa, tested positive for African swine fever (ASF) virus. In an interview with reporters, the DA said it would write to the Food and Drug Administration (FDA) to order the recall of the items. The ASF-positive products were intercepted in Calapan, Mindoro.The items were confiscated by the Bureau of Animal Industry (BAI), National Meat Inspection Service (NMIS) and local government units (LGUs) from a passenger in-bound to Mindoro. Furthermore, the DA said the ASF-positive processed meat products did not undergo the internationally accepted standard for inactivation of the virus—cooking in 70 degrees celsius for 30 minutes. Aside from the “branded” processed meat products, the DA said home-made processed me at products that were confiscated in the same port of entry tested positive for ASF. In a statement to reporters, FDA OIC-Director General Eric Domingo said they are still waiting for the DA’s report but assured the public that consumption of such products poses no threat to human health.
NEDA nixes additional tariffs on rice imports Philippine Star 24th Oct 2019
The National Economic and Development Authority (NEDA) firmly opposes the proposal of the Department of Agriculture (DA) to impose additional duties on imported rice. Last month, the DA announced it had been considering the imposition of safeguard duties on imported rice as early as October as prices of unmilled rice fell to a near-decade low amid oversupply due to strong importation. Agriculture Secretary William Dar said there is a need to arrest the influx of foreign rice ahead of the main harvest season.The DA also raised the possibility of doubling tariffs on imported rice to give farmers respite from falling palay prices. By raising tariffs, imports will become more expensive, forcing local traders to dispose of their stocks and buy again from farmers at higher prices.
Nestlé to buy more beans from local farmers Business Mirror 24th Oct 2019
Nestlé Philippines Inc. is poised to buy more of its coffee beans from local farmers as it rolls out its new buying scheme next month.On Wednesday, Nestlé Assistant Manager Benedict A. Ella announced at the 26th Farmers’ Field Days and Technology Forum in Malaybalay, Bukidnon that they will be implementing their Robusta 2 buying scheme in November to get more local coffee beans for their popular international coffee brand Nescafe. Under the buying scheme, Nestlé raised the moisture threshold of the coffee beans it buys from 12 percent to 12.5 percent or 13 percent. Nestlé also opted to relax its restrictions on the coffee beans it buys.
PCC LOOKS INTO PRICE GAP: Rice traders face probe Malaya 24th Oct 2019
The Philippine Competition Commission (PCC) yesterday said it will look into the worsening gap between the retail and farmgate prices of rice, focusing on the middlemen as the possible culprit.Arsenio Balisacan, PCC chairman, told reporters at the sidelines of a forum in Quezon City yesterday administrative and criminal penalties as well as imprisonment await those found to be engaged in rice cartel. Johannes Bernabe, PCC commissioner, said the rice tarrification has resulted to more supply due to imports which had put pressure on farm gate prices to decrease. However, prices at retail are not falling as fast. On the issue of whether tariffication is a good thing or a bad thing in terms of the unanticipated effects in the market, Bernabe said “we leave that to the policymakers.” Bernabe added the PCC is also looking retailers as there are certain relevant geographic markets that indicate it is worth pursuing to find out if “there is some anticompetitive behavior that is going on.” He said once the PCC establishes there is anti-competitive behavior in rice trade, whether it is in the form of cartel or abuse of dominant position, the penalties imposed by the Philippine Competition Act kick in.
Alliance Select drops US, Indonesia assets in favor of PH, New Zealand Phil Daily Inquirer 24th Oct 2019
Listed homegrown seafood company Alliance Select Foods International Inc. is focusing on its operations in the Philippines and New Zealand after it decided to sell its US subsidiary and Indonesian assets. The company reported in a disclosure to the Philippine Stock Exchange (PSE) on Thursday the sale of its Massachusetts-based subsidiary Spence & Co. to Acme Smoked Fish of Massachusetts LLC and the sale of its land and building assets under PT International Alliance Food Indonesia (PT IAFI) to Wilmar International Limited’s subsidiary, PT Multi Nabati Sulaweesi.
PH hunger rate drops in Q3 — SWS Manila Times 24th Oct 2019
Hunger level in the Philippines dropped in the third quarter of 2019, according to the latest poll of the Social Weather Stations (SWS). The survey, conducted from September 27 to 30 among 1,800 Filipino adults nationwide, showed that 9.1 percent or 2.3 million families experienced involuntary hunger at least once in the past three months. The poll, conducted using face-to-face interviews, has sampling error margins of ±2.3 percent for national percentages, ±4 percent each for Balance Luzon and Mindanao, and ±6 percent each for Metro Manila and the Visayas.
Processed meat products test positive for ASF Philippine Star 23rd Oct 2019
Various processed meat products have tested positive for African swine fever (ASF) just as the government ordered the lifting of the ban on the transport and entry of such commodities to the Visayas and Mindanao. In a clinical laboratory report dated Oct. 15, the Bureau of Animal Industry confirmed that three meat samples have been detected with the ASF viral DNA using the real time polymerase chain reaction test. The products were hotdog, longganisa and tocino. The report, however, did not show a specific brand or where they came from.Agriculture group Samahang Industriya ng Agrikultura (Sinag) claimed that the products are most likely imported, maintaining that processed meat products are never actually tested for ASF “This only proves that we should not trust the claims of processors that the ASF virus can actually be killed once it undergoes heat treatment,” Sinag said.
DepEd pushes for greater interest in agriculture among learners Manila Bulletin News 4th Nov 2019
For the Department of Education (DepEd), the interest in agriculture should start at the basic education level so learners would have “lasting” passion about it. “For us in the Department of Education, it is most important to promote agriculture to our youth by integrating it in basic education programs,” said Education Secretary Leonor Briones in her message when she presided over the investiture of the new Southeast East Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA) and Opening Ceremony of the 67th SEARCA Governing Board Meeting held recently at the Umali Auditorium, the University of the Philippines Los Baños (UPLB), Laguna.
Philippine hog industry's losses from swine fever nearly $20 million a month Reuters 31st Oct 2019
The Philippine hog industry is losing nearly $20 million a month from African swine fever infections, agricultural officials said on Friday, after announcing the virus has also been detected in some processed pork products. The tainted products include hotdogs, sausages and cured meat, local media reported. President Rodrigo Duterte’s office issued a statement late on Thursday seeking a concerted government effort to manage, contain and control the disease that is also wreaking havoc on hog industries in China and other Asian countries. Reported infections are all within Luzon and some provinces in central and southern Philippines have banned pork and pork-based products from the disease-hit areas.
Duterte's war on inflation hammers Philippine farmers Nikkei Asian Review 29th Oct 2019
Back in February (2019), Duterte signed the Rice Tariffication Law, which removed limits on imports. This came after a rice shortage drove nearly decade-high inflation last year, hitting the $330 billion consumer-driven economy hard. After a flood of foreign rice and multiple interest rate increases by the Philippine central bank, inflation has settled at an average of 2.8%. The September figure stood at 0.9%, the lowest since early 2016. Nevertheless, groups such as the Peasant Movement of the Philippines insist the legislation should be repealed. While the Chao Phraya and Mekong rivers have helped propel the rise of Thailand and Vietnam as rice exporters, the Philippines lacks bountiful natural irrigation sources. So although it has a proud history of rice-planting, and hosts the International Rice Research Institute, the archipelago remains a net importer. Many Filipinos see this as a "national embarrassment," according to researchers at the Philippine Institute for Development Studies, a state think tank.
Corporatization needed to boost Philippine agriculture philstar.com 28th Oct 2019
As the Philippine agriculture continues to lag behind, economists suggest that corporatization is needed to boost and make the sector productive again. In a recent television interview, economist Emmanuel De Dios said the protracted agrarian reform of government and lack of support for extensions and service have resulted in the fragmentation of production in agriculture and very low productivity. The current administration is targeting to grow the sector by as much as four percent in the next three years to achieve greater food security.
‘Sugar liberalization to undermine Philippine agriculture competitiveness’ philstar.com 28th Oct 2019
The government’s move to open up the local sugar industry to importation would compromise the country’s bid to achieve agricultural competitiveness in the region, the Capiz government has warned. In a resolution filed by the Office of the Sangguniang Panlalawigan of Capiz, the provincial government has expressed strong opposition to the proposed liberalization or deregulation of sugar importation. Last month, the Department of Finance issued an economic bulletin stating that the high effective protective rate of the sugar industry penalized customers and deterred the growth of downstream industries.
QC veterinarian refutes DA claim that the city is ASF-free Rappler 28th Oct 2019
Quezon City veterinarian Dr. Ana Marie Cabel refuted Department of Agriculture (DA) Spokesperson Noel Reyes’s claim that the city was cleared of African swine fever (ASF), saying that around 2,000 pigs have yet to be culled. Cabel clarified that while the 6 other ASF-infected barangays in the city have already been cleared of the virus, hog raisers in Barangay Payatas expressed resistance to the containment procedures. So far, Barangays Tatalon, Roxas, Pasong Tamo, Bagong Silangan, Tandang Sora, and Commonwealth have been cleared of ASF. While Barangay Matandang Balara showed signs of infection, Cabel clarified that the area was not infected by the disease. In the meantime, the city government is still implementing protocols and surveillance to monitor and contain the virus.
Health & Life Sciences
Duterte bans use, importation of e-cigarettes Daily Inquirer 19th Nov 2019
Duterte said he would “ban the use and importation” of vaping or e-cigarettes. “Vaping is also dangerous, I am banning it. If you are smoking now, you will be arrested,” Duterte said in a hastily called press conference In Malacañang Tuesday night.“I will order law enactment to arrest anybody vaping in public,” he added.“I hope everybody is listening. You now why? Because it is toxic and the government has the power to issue measures to protect public health and public interest.”
California sues e-cigarette firm Juul for targeting minors Manila Bulletin 19th Nov 2019
California announced Monday it is suing Juul, the United States’ largest electronic cigarette manufacturer, for illegally targeting minors with its marketing campaigns.E-cigarettes have soared in popularity among young people since they were introduced about a decade ago. California law prohibits the sale of vaporizing products to persons under the age of 21. A joint lawsuit filed by California Attorney General Xavier Becerra and his Los Angeles counterpart alleges that Juul Labs failed to meet its obligations to verify the age of its customers. The San Francisco-based firm also retained the email addresses of customers it had identified as minors in order to send them advertisements, according to the lawsuit.Juul sales represent more than 64 percent of all e-cigarettes in the US.The company has denied that its products — including mango, mint and creme brulee-flavored e-cigarettes — were aimed at minors. Ahead of a possible ban by health authorities, the firm this month pulled its mint-flavored products after a study found it was the favorite flavor among high school students.It now sells only three flavors in the US: two tobacco-flavored varieties and menthol.
Certify bill banning single-use plastic–Kiko - Business Mirror 11th Nov 2019
TAKING the cue from Malacañang, opposition Sen. Francis Pangilinan prodded President Duterte to certify an urgent measure that will enable lawmakers to pass the bill totally banning “single-use plastics.”The senator stressed that a total ban on “importation, manufacture, and use of single-use plastic is an urgent matter and should be done immediately.” Pangilinan pointed out that the Palace itself sent signals it was “eyeing such a ban.” In a statement, Pangilinan pleaded for the Palace certification to enable the Senate and the House of Representatives to pass the urgently needed remedial legislation on second and third reading in one sitting, after which it would be promptly submitted to the President for signing into law. Pangilinan filed Senate Bill 40 as soon as the 18th Congress convened to “phase out single-use plastic products by prohibiting their importation, manufacture, and use in food establishments, stores, markets and retailers.”He explained that the Single-Use Plastics Regulation and Management Bill aims to “ban the use of all single-use plastics starting one year after the effectivity of the measure and to penalize those who will not enforce it.”The senator added that “those who will reuse and recycle will receive an incentive.”
Nurses complete Singapore training ahead of UHC BusinessWorld 7th Nov 2019
AROUND 100 nurses have completed a program of the Department of Health (DoH) in partnership with Singapore’s Nanyang Polytechnic and Temasek Foundation, in order to upgrade the nursing profession in time for the Universal Health Care (UHC) Program which takes effect next year. In a statement Thursday, the DoH said that it has concluded its two-year partnership with the Singapore institutions, which has produced 100 nursing graduates. DoH added that the graduates will also be training other health workers in the Philippines.
Philippines Nutraceuticals Markets, 2012-2017 & 2018-2022 Yahoo Finance 5th Nov 2019
The "Philippines Nutraceuticals Market Outlook to 2022-Composite Herbal Dietary Ingredients, Ginseng, Garlic and Ginkgo Biloba Based Herbal Supplements will Drive the Growth" report has been added to ResearchAndMarkets.com's offering. The report covers the overall market size in terms of revenue, segmentations on the basis of product category and channels of distribution for vitamins & dietary supplements, functional beverages and functional foods, trends and developments, issues and challenges, regulatory landscape in Philippines, entry barriers and pre-requisites to enter the market, competitive scenario and company profiles. The report concludes with market projection for future market described above and analyst recommendations highlighting the major opportunities and cautions for the nutraceuticals market.Philippines Nutraceuticals Market Overview and Size
Philippine govt bears immunisation cost of its children in Sabah: Dzulkefly www.thesundaily.my 5th Nov 2019
The cost of providing vaccination and immunisation services to Filipino children at the Alternative Learning Centre in Sabah is fully borne by the Philippine government, says Health Minister Datuk Seri Dr Dzulkefly Ahmad (pix). Dr Dzulkefly said on July 30, both the Malaysia and the Philippine governments have signed a memorandum of understanding (MoU) on the scope of cooperation on health aspects for both countries. He said the MoU was signed by him and his counterpart from the Philippines, Dr Francisco T. Duque III.
Young Filipinos are in the midst of a mental health crisis Phl Daily Inquirer 4th Nov 2019
“There’s a mental health crisis going on,” says Dr. Cornelio Banaag Jr., speaking at a seminar for parents and teachers organized by the Raya School.A practicing psychiatrist, Banaag is professor emeritus at the University of the Philippines College of Medicine and is widely acknowledged in the profession as the father of child psychiatry in the Philippines. “I’ve seen depression and anxiety but not to the degree that we have now. I’ve seen suicidal patients but not to the extent that we see now. It worries me. There’s not a week that goes by when you don’t hear about people cutting themselves, people so depressed that they threaten to kill themselves, attempt to kill themselves or actually dying.”Citing statistics from the World Health Organization, Banaag says an estimated 10 to 20 percent of children and adolescents suffer from some form of mental health disorder. The statistics on suicide are even more alarming.
Philippines mulls tax on salty foods, including dried fish Gulf News 4th Nov 2019
After imposing taxes on sugary drinks, the Philippines may impose taxes on food with high salt content, to curb certain diseases, officials say. According to the Philippines’ Department of Health (DOH), non-communicable diseases (NCDs) account for a large part of health costs for Filipinos. A survey conducted in 2015 found that the average daily salt intake of Filipinos is more than double the recommendation of the World Health Organisation (WHO)
Philippine participates in new TB drug tests philstar.com 3rd Nov 2019
The Philippines is one of 12 countries that will be participating in the Phase-3 clinical trial of a new drug that will prevent the spread of multi-drug resistant tuberculosis (MDR-TB) within a household, an official of the United States government’s National Institute of Health (NIH) announced here the other day. According to Peter Kim, director of the Division of AIDS Therapeutic Research Program, National Institute of Allergy and Infectious Diseases at NIH, they have invested $70 million for the trial to assess treatments for preventing “household contacts” of people infected with MDR-TB using “Delamanid” drugs developed by Japanese Otzuka Pharmaceuticals. “We are here to announce a new Phase 3 global trial will be rolled out in 12 countries. It will look at how we can prevent MDR-TB among those who have been exposed to MDR-TB cases,” he said at a press conference in line with the 50th Union World Conference on Lung Health being held here.
Control swine fever spread, Duterte orders Phil Daily Inquirer 25th Oct 2019
President Duterte has ordered government agencies to carry out measures to contain the spread of African swine fever in the country and to extend aid to hog raisers who have lost their livestock to the disease. Presidential spokesperson Salvador Panelo said on Thursday night that Executive Secretary Salvador Medialdea had directed all executive departments, bureaus, agencies, government-owned and -controlled corporations, state financial institutions, and other offices to take steps to control the African swine fever epidemic.
Defining the future of Image-Guided Therapy in the Philippines Manila Bulletin 25th Oct 2019
With the Philippines’ developing healthcare landscape, the need for innovative clinical solutions that maximize efficiency and productivity continues to increase. Image-guided therapy (IGT), also known as minimally invasive therapies or interventions, is a 21st century health solution, which involves the delivery of treatment via catheters that navigate through a small opening in the blood vessels.
HL population targets on track despite ‘political, cultural factors’ Philippine Star 23rd Oct 2019
THE Philippines’s population targets remain on track despite “political and cultural factors,” according to the National Economic and Development Authority (Neda). In a statement on Wednesday, Socioeconomic Planning Secretary Ernesto M. Pernia said the government aims to bring down the fertility rate to 2.4 children per woman from the current 2.7 children.Firm policies on population and development are already in place in the Philippines and should enable the government to meet its medium-term demographic-economic goals, Neda said. He explained that, while Filipinos continue to increase in number—around 2 million annually— population growth rate in the Philippines has declined by 1.76 percent. The increased use of modern family planning methods has brought down the total fertility rate to 2.7 children per woman from 5.7 in 1975, 4.3 in 1990, and 3 in 2013.
ICT
Manila seeking private-sector partners for free WiFi, calls BusinessWorld 17th Nov 2019
MANILA MAYOR Francisco Moreno Domagoso said he is currently in talks with the private sector on his plans to put up modern phone booths offering free calls and WiFi access, particularly in the University Belt (U-Belt) area. “I am now talking to the private sector if they can provide such facilities particularly in the U-Belt area; and I hope in the coming weeks, there will be more public free access to communication in two things: the old-school way, by calling for free, and the new technology which is the Internet,” Mr. Moreno told BusinessWorld in Pasay City Thursday.
Slower electronics sector could ‘short circuit’ Philippine growth — Oxford Economics philstar.com 31st Oct 2019
The Philippines’ electronics sector will likely face more headwinds in the short run, boding badly for the economy. In a research note, Oxford Economics said a slowdown in electronics sector — which accounts for over 50% of Philippines’ total goods exports and the biggest source of employment within manufacturing — could hurt the country’s economy. “We conclude that the Philippines’ electronics sector will continue grappling with challenges in the short run,” Oxford Economics said.
SKT forms partnership to build 5G networks in Philippines The Investor 28th Oct 2019
SK Telecom said on Oct. 27 it has formed a strategic partnership with Now Corporation to build 5G infrastructure in the Philippines. SKT will share its know-how in 5G infrastructure design and construction, opening up the export of business-to-business solutions between Korea and the Philippines.
Software industry hoping for 50% conversion rate among illegal software users BusinessWorld 28th Oct 2019
THE Business Software Alliance (BSA) said it hopes to make half of the 10,000 companies it has identified as users of illegal software convert to licensed products by 2020. BSA has partnered with the Optical Media Board (OMB) to launch a “Clean Up to the Countdown” campaign to reduce illegal software use by the end of the year. Between March and September, BSA claimed a conversation rate of 22% of the 6,220 companies the alliance is currently engaged with. The 2020 target signifies a more than doubling of the conversion rate. In a news conference Monday, BSA Senior Director Tarun Sawney said that the use of unlicensed software puts businesses at risk of malware and viruses
Outsourcing firms embark on upskilling Business World 23rd Oct 2019
THE INFORMATION TECHNOLOGY andBusiness Process Management (IT-BPM) industry is set to pilot educational programs to reskill and upskill 1 million workers over five years to adapt to automation. Information Technology and Business Process Association of the Philippines (IBPAP) President and Chief Executive Officer Rey C. Untal said in an interview on Monday that he wants the industry’s upskilling program to exceed the 100,000 per year employment growth target.Upskilling and reskilling includes workers already employed in the IT-BPM industry. The five-year timetable starts as soon as the program is launched.Mr. Untal said that industry’s employment growth would mostly come from higher complexity work. The IBPAP analysis found that the upskilling and reskilling of a million workers would require P40 billion in funding from government and foreign assistance.With upskilling, Mr. Untal said that the Philippines could increase jobs in the industry by attracting more contracts even as existing contracts shrink due to automation. Employees that lose jobs can be moved to new contracts as companies diversify their portfolios and retrain workers.
The current state of 5G The Manila Times 17th Nov 2019
5G technology, with its promises of self-driving cars, remote surgery and igniting the Fourth Industrial Revolution, is heating up the competition among nations to be the first to fully rollout a viable commercial version of the next generation in mobile connectivity. Additional incentives include exceptional revenues to be generated by telcos and service providers. 5G market revenues worldwide is forecast to reach $277 billion by 2025. In the Asean market, 5G operator revenues could be anywhere between $4.3 billion and $5.8 billion a year by 2025. They’re enough to pump up interest on major telcos, enterprises and consumers alike on what’s in store for them in the coming golden age of 5G. But then reality bites and the question now is, where does everything 5G stand in the here and now?
Cable MSMEs slam DICT, NEA The Manila Times 14th Nov 2019
THE Philippine cable TV and internet industry blasted the Department of Information and Communications Technology (DICT) and National Electrification Administration (NEA) for not acting on the issue of skyrocketing pole rentals imposed by rural electric cooperatives. The cable operators, represented by the Federation of International Cable TV and Telecommunications Associations of the Philippines (Fictap) National Chairman Estrellita Juliano-Tamano, sent a letter to NEA complaining against the implementation of the pole rental increase. The NEA, in a memorandum issued on Aug. 15, 2018, ordered rural electric cooperatives led by the Philippine Rural Electric Cooperatives Association to implement a new pole rental policy raising rates by an average of 40 percent.
ADB works to develop digital technology in Asia – The Manila Times 30th Oct 2019
Despite many developments Susantono stressed ‘the foundation for digital economy, however, are not yet fully in place here in Asia.’ Manila-based Asian Development Bank (ADB) has supported over 300 projects that aim to develop digital economy in Asia to take advantage of the rising usage of mobile technology in the region. This is according to Bambang Susantono, vice president for Knowledge Management and Sustainable Development of ADB, during his keynote speech at the recently concluded Finex (Financial Executives Institute of the Philippines) Conference 2019 themed “Riding on the Opportunities on the Next Digital Wave,” at the Grand Hyatt Manila in Bonifacio Global City, Taguig City. Susantono said that that smartphone usage in Asia today are rising. In particular, he noted that almost 70 percent of the Philippine population have and using smartphones.
Advancing procure to pay functions in the age of digital transformation The Manila Times 30th Oct 2019
In this age where digital transformation is imperative for businesses to survive and thrive—Procure to Pay functions are being challenged to answer more than what the current systems are capable of. The challenges revolve in the areas of efficiency and data understanding — not just data visibility, performance, and controls. Below is a guide on how you can advance the role of Procure to Pay within your organization to incorporate artificial intelligence in the processes. Evaluate any “great wall” A “great wall” is a system that blocks the initiatives for digital transformation. Typically, it is the culprit for massive spreadsheets and islands of systems leading to redundant data handling. Instead of increasing proficiency, the “great wall” acts as the barrier from simplifying processes, making information available, and providing quicker response time.
Digital technology, key to Philippine financial inclusion OpenGov Asia 29th Oct 2019
During a recent meeting with the Department of Finance Secretary Carlos Dominguez III, World Bank President David Malpass shared that the robust economy of the Philippines offers many opportunities for the government to “re-guide” its digitalisation efforts to empower Filipinos. According to a recent press release, the Bank is encouraging innovations using digital technology to expand financial inclusion in the Philippines.
Infrastructure
Bankers cite lure of PHL growth story BusinessWorld 17th Nov 2019
THE PHILIPPINES’ relatively fast economic growth remains a compelling proposition for investors notwithstanding the recent slowdown, bankers said in a forum late last week, citing particularly the lure of the government’s infrastructure push. “Some of our economies are growing at less than three to four percent compared to the Philippines’ economy growing at 6.2[%], so clearly there are opportunities for us to get involved,” Asian Bankers Association President Antonio Jonathan Alles, managing director and chief executive officer (CEO) of Hatton National Bank in Sri Lanka, said in an interview at the sidelines of the 36th Asian Bankers Association (ABA) Conference at the Makati Shangri-La hotel on Friday.
Megawide takes interest in building commercial airport at Sangley Point BusinessWorld 17th Nov 2019
MEGAWIDE Construction Corp. is taking interest in the Cavite government’s plan to build a commercial airport at Sangley Point at the former US Navy station in the province, company officials said last week. Jaime Raphael C. Feliciano, chief business development officer of the listed engineering firm, told reporters on Friday the company is evaluating prospects of the airport project. If it participates in the auction, this would be the third airport project in Megawide’s portfolio. “We’ve accessed the bidding documents. We’re now looking at the terms. We’re also looking at potential partnerships,” he said. Megawide is the operator of the Mactan-Cebu International Airport through subsidiary GMR-Megawide Cebu Airport Corp. (GMCAC).
Speaker rejects Duterte special powers for BBB Philippine Star 14th Nov 2019
Saying it was too late in the day, Speaker Alan Peter Cayetano has rejected a proposal to give President Duterte special powers to speed up Build, Build, Build (BBB) flagship projects under his administration. Presidential spokesman Salvador Panelo, on the other hand, agreed with the recommendation of Albay Rep. Joey Salceda.“I think the suggestion of Congressman Salceda is good because one of the reasons why there are delays in the projects is there are (issues on) right of way. We are encountering problems with the owners who would bring the ROW concerns before the courts to get temporary restraining order,” Panelo said yesterday. He noted that if there are no obstacles, then it would be easier for the concerned agencies to proceed with their activities and allow the government to meet targets before the President ends his term in 2022.Panelo was quick to say that he was just stating his own opinion since he has yet to discuss the matter with Duterte. Salceda, who is filing a measure, said the emergency powers would remove “roadblocks” to projects such as right of way issues.
Drilon blasts Duterte’s infra program as ‘dismal failure’ daily Inquirer 12th Nov 2019
— Senate Minority Leader Franklin Drilon on Tuesday slammed as a “dismal failure” the Duterte administration’s “Build, Build, Build” program, citing that only nine of the 75 flagship projects have started construction. During the Senate deliberations on the proposed 2020 national budget, Drilon had asked for the status of the projects under the Duterte’s “Build, Build, Build” program. “We barely have less than three years to go, so how many more are we expected to start and when will they be finished?” Drilon asked. However, the National Economic and Development Authority was only able to present the number of projects expected to be finished until 2022. Citing figures relayed to him by NEDA, Senator Sonny Angara said 12 projects are expected to be completed by 2020, 17 projects by 2021, and another 26 projects by 2022. “Forty-three will be completed beyond 2022,” Angara, chair of the Senate finance committee, told Drilon. But Drilon was not convinced the concerned government agencies could pull this off
Manila office workers consider dorms to cope with world's worst traffic Business Mirror 11th Nov 2019
Nearly half of working professionals in the Philippines capital region consider living in a dormitory to avoid traffic jams, according to property services company Colliers International Group Inc. About 45 percent of respondents in a Colliers survey are “willing to stay in a coliving facility” as financial and personal costs of worsening traffic in Metro Manila mount, research manager Joey Bondoc said at a briefing on Wednesday. Workers spend as much as P4,500 ($89) monthly on commuting and are on the road for more than three hours for a one-way trip, Bondoc said. They are willing to spend as much as P6,000 to live in a dormitory-type lodging closer to work, he said. The Philippine capital region is set to top Waze Inc.’s 2019 ranking of the world’s worst cities to drive in, beating the likes of Bogota and Jakarta. Worsening mobility in Manila has prompted builders from Ayala Land Inc. to SM Prime Holdings Inc. to offer worker dormitories. Colliers, which tracks coliving spaces in three districts in Metro Manila, forecasts beds in sha
Wawa dam water supply for Metro Manila could face delay -- proponent BusinessWorld 4th Nov 2019
RAZON-LED Prime Metroline Infrastructure Holdings, Inc. (Prime Infra) warned on Monday that it might not be able to deliver water to Metro Manila as scheduled in 2021 from Wawa dam in Rizal, citing the delay in government approval of the project. “The development work to ensure water supply delivery of 80 million liters per day (MLD) in 2021 and over 500 MLD in 2025 that will address the ongoing water crisis in Metro Manila may not push through as planned,” the company said in a statement. The company said it “continues to wait for the final approval of the project from the Metropolitan Waterworks and Sewerage System (MWSS).”
Infrastructure spending still short year-to-date despite September surge BusinessWorld 31st Oct 2019
INFRASTRUCTURE SPENDING surged in September by its fastest pace in almost three years, but still fell short of program year-to-date due to late 2019 national budget enactment, according to data which the Department of Budget and Management (DBM) released on Thursday. State spending on infrastructure and other capital outlays surged by 53.9% to P100.3 billion in September from the P65.2 billion recorded a year ago. That was the biggest increment since October 2016’s 56.4% year-on-year increase to P43.7 billion. “The growth of government disbursements this September was mainly driven by an upsurge in disbursements… particularly in infrastructure/other capital outlays spending, indicating that the government has broken through the effects of the delayed passage of the FY 2019 national budget and the election ban on infrastructure spending which weighed… on economic growth during the first half of the fiscal year,” DBM said in a statement. Despite last month’s pick up, the P546.3-billion year-to date infrastructure expenditures were still 4.3% smaller than the P570.8 billion spent in last year comparable 10-month period.
Metro Manila cities top LGU competitiveness ranking Business World 25th Oct 2019
QUEZON CITY dominated the annual list measuring the competitiveness of local government units (LGU) in the country for the fourth time, elevating the city to the Hall of Fame of the Cities and Municipalities Competitiveness Index (CMCI) 2019 released on Thursday. This year’s index was released during the 7th Regional Competitiveness Summit held at the Philippine International Convention Center in Pasay City. The city list showed Metro Manila localities account for six of the top ten most competitive cities, including Quezon City (first place), Manila (second), Pasay (fourth), Makati (fifth), Pasig (sixth), and Muntinlupa (eighth). As for cities outside the capital, Davao came in third place, followed by Cagayan de Oro (seventh), Iloilo (ninth), and Bacolod (tenth). DTI Secretary Ramon M. Lopez said the ranking is an opportunity for policy makers and public officials to see where they are and compare it to their past performance.
Philippines to revise 'Build, Build, Build' plan to make it more achievable Yahoo News 25th Oct 2019
The Philippines is carrying out an inventory of infrastructure projects under its ambitious six-year, $180 billion "Build, Build, Build" programme to come up with a more realistic list of projects. Economic Planning Secretary Ernesto Pernia told Reuters the government was "trimming" the list of 75 flagship projects it had promised to deliver or at least start and "substituting with others more economically feasible and doable". President Rodrigo Duterte's government has promised to usher in a "golden age of infrastructure" by building and modernising airports and ports, and lifting economic growth in the country of more than 107 million people.
97 mayors fail to meet Duterte's road clearing deadline Rappler 24th Oct 2019
At least 97 mayors nationwide failed to comply with President Rodrigo Duterte's order to clear main thoroughfares in their areas within 60 days, the Department of the Interior and Local Government (DILG) announced on Friday, October 11. DILG Secretary Eduardo Año said the mayors are set to receive show cause orders, ordering them to explain why they failed to follow the clearing order. If their explanation does not satisfy the DILG or if they do not reply at all, they can face administrative charges such as dereliction of duty and negligence. During his 2019 State of the Nation Address on July 22, Duterte gave mayors 60 days, or until September 29, to "reclaim all public roads that are being used for private ends." (READ: Duterte's Metro Manila traffic solution? Reclaim public roads) Since the President issued the order, the DILG has been inspecting roads nationwide giving each local government their ratings. The DILG found that in total, mayors nationwide cleared 6,899 roads of obstruction.
Dominguez confident gov’t to hit 2019 spending target Manila Bulletin 24th Oct 2019
The Duterte administration’s economic managers are confident that the national government will hit its spending program this year despite by the setback caused by the delayed passage of the budget and the election ban. Finance Secretary Carlos G. Dominguez III said the government is on track to disburse its ₱3.769 trillion budget for the year, noting the spending has already gained momentum in recent months particularly in September. “To attain this target, the government needs to disburse ₱1.14 trillion or 30 percent this fourth quarter. Based on the updates of our main infrastructure agencies, we are confident that we are going to hit our spending target this year,” Dominguez told reporters.
DPWH sets Dec. 1 deadline on Slex work Business Mirror 24th Oct 2019
PUBLIC Works (DPWH) Secretary Mark A. Villar said the construction work on the extension of the South Luzon Expressway (Slex) should be completed by December 1, a critical milestone that is seen to ease the current traffic congestion along the thoroughfare. The extension will give motorists direct access to and from the Muntinlupa-Cavite Expressway (MCX), and will add an estimated 4,500 vehicles per hour capacity to the northbound expressway, and around 3,000 vehicles capacity per hour, southbound.
Insurance
DA releases P130M worth of aid to Eastern Visayas rice farmers BusinessWorld 28th Oct 2019
THE Department of Agriculture (DA) said it has released over P130 million worth of loans to rice farmers in the Eastern Visayas region. In a statement, the DA said it has disbursed P136.425 million worth in loans under the expanded Survival and Recovery Assistance (SURE Aid) program, which targets 9,095 farmers from Biliran, Leyte, Southern Leyte, Northern Samar, Eastern Samar, and Samar provinces. The loans are distributed via cash cards provided by the Land Bank of the Philippines (LANDBANK). This program is implemented by the DA through the Agricultural Credit Policy Council (ACPC) and the bank, targeting rice farmers affected by the drop in the price of palay, or unmilled rice, the form in which they sell their harvest to traders.
Legislation
House conducts Cha-cha hearing in Mindanao Philippine Star 15th Nov 2019
The House of Representatives, through its committee on constitutional amendments, takes its public consultations on Charter change (Cha-cha) to Mindanao today- Aside from Rodriguez, several committee members, including Reps. Carlos Zarate of Bayan Muna, Ruwel Peter Gonzaga of Compostela Valley, Abdullah Dimaporo of Lanao del Norte and Alyssa Sheena Tan of Isabela, will attend the hearing. Gary Olivar and political analyst Ramon Casiple, who are members of the Center for Federalism and Constitutional Reform, have been invited as facilitators.Members of academe, civic groups and local officials have been asked to participate in the consultations.Several Cha-cha resolutions have been introduced in the House. The constitutional amendments grouped them into seven subjects, most of which seek to relax the Charter’s economic provisions to allow expanded and direct foreign ownership of land and businesses, and lengthening the term of office of local officials from three years to four or five years. In the Metro Manila consultations, Rodriguez said there was a consensus in favor of relaxing economic restrictions and making the term of office of congressmen and local officials four years or five years. It was felt that easing or removing economic restrictions could bring in more foreign investments, which translate into “more income and jobs for our people and economic development,” he said. In the past, Cha-cha did not move forward because leaders of the House claimed they could do it without the participation of the Senate.
Due to concerns over future of SEA Games sports facilities, Senate recalls approval of P15.5B BCDA budget Daily Inquirer 15th Nov 2019
The Senate recalled on Thursday the approval of the proposed P15.5 billion budget of the Bases Conversion and Development Authority (BCDA) after its ability to ensure that newly-constructed facilities will not go to waste after the Southeast Asian (SEA) Games was put into question. The recall comes after Senate Minority Leader Franklin Drilon expressed concern over the supposed lack of financial plan to maintain the sports facilities to be used as venues for the SEA Games, particularly those in the New Clark City in Tarlac. He then moved to reconsider the approval of BCDA’s budget. Drilon explained that the basis for the motion for reconsideration “are (the) the responses that we are getting today and the position of the chairman (Go) of this committee…is not in the position to answer all the questions as he is not the sponsor of the BCDA budget.”
Senators buck sugar deregulation Daily Inquirer 13th Nov 2019
A group of lawmakers has signed a senate resolution calling on President Duterte not to push through with the deregulation of sugar trade, noting its effects on more than 20 provinces in the country that rely on the commodity. A Senate investigation is also underway to look into the effects of the proposed sugar liberalization, which the administration’s economic team said would bring down retail prices of sugar and enable food processing industries to be more competitive. Senate Resolution No. 213 was signed on Monday evening and added to the growing opposition to the proposal. Other stakeholders who bucked the move included sugar workers, farmers, food processors, millers and several labor groups. “[The] deregulated entry of subsidized sugar into the Philippine market will be disastrous to our sugar industry, which contributes an estimated P96 billion to the gross domestic product, particularly to 84,000 farmers—mostly small farmers and agrarian reform beneficiaries, with each farmer tilling less than a hectare of sugar farm land—and 720,000 industry workers directly affecting almost a million families or 5 million individuals,” the resolution said.
Duterte certifies as urgent Senate bill hiking alcohol, tobacco taxes Manila Times 13th Nov 2019
PRESIDENT Rodrigo Duterte has certified as urgent a proposed Senate bill increasing excise tax on liquor, e-cigarettes, and vapor products, including electronic cigarettes. In a letter addressed to Senate President Vicente Sotto 3rd on Tuesday, Duterte called for the “immediate enactment” of Senate Bill 1074 “to address the urgent need to generate additional revenue to support the effective implementation of the Universal Health Care Act and to further protect the right to health of the people.” Under the bill, fermented liquor (beer) and alcopops will face a specific tax rate of P45 per liter on the first year of implementation—which will increase by P10 every year until the fourth year. The specific tax rate will increase by 10 percent every year thereafter. The bill also proposes to increase e-cigarettes (under the heat-not-burn product category) rates from P10 per pack to P45 per pack on the first year. Wine products will also be slapped with a specific tax of P600 per liter for sparkling, and P43 per liter for still and carbonated wines.
2020 budget on track in the Senate BusinessWorld 11th Nov 2019
THE PROPOSED P4.1-trillion national budget for 2020 is on track to enactment next month as the Senate on Monday began plenary deliberation on the spending plan, even as realignments flagged by Senator Panfilo M. Lacson pose some risk of prolonged discussions. “Out of this amount, 15.4% will be devoted to expenditures related to operating and improving our communications, roads and other forms of transportation; 17.3% for education, culture and manpower development,” Senate Committee Chairman Juan Edgardo M. Angara said in his sponsorship speech on Monday. Social security and welfare will get nine percent of the budget, while 4.8% will go to domestic security and 7.4% to public order and safety. The Senate will be opening plenary sessions in the morning beginning Nov. 12 and will hold sessions until Thursdays.
Pangilinan files bill to disqualify political turncoats from office Senate.com 11th Nov 2019
To institutionalize and strengthen political parties of the Philippines as pillars of the country's democratic system, Liberal Party president and Senator Francis "Kiko" Pangilinan filed a bill seeking to, among other things, disqualify political turncoats from office. Senate Bill 421 or the Political Party System Act seeks to create a state subsidy fund for political parties to enable them to build meaningful political identities, policy-based platforms and agenda, and internal democratic structures.
DOF won’t tax salty food products Philippine Star 9th Nov 2019
The Department of Finance (DOF) has no intention of seeking to impose taxes on salty foods for now, an official said yesterday. A proposal of Health Secretary Francisco Duque III to impose taxes on salty and other “unhealthy” foods has drawn widespread criticisms, with many calling it “anti-poor.”“We are studying it but it seems like the best way ,to do it is by regulation and promotion of the health aspects, not from the tax,” Finance Undersecretary Karl Kendrick Chua told reporters attending a DOF-led workshop on tax reforms.
DOH proposal for total ban on e-cigarettes thumbed down Philippine Star 6th Nov 2019
Lawmakers yesterday rejected the proposal of the Department of Health (DOH) for a total ban on electronic cigarettes and vaping products in the Philippine market.Salceda, chairman of the House ways and means committee, said the proposal runs counter to the measure approved by this 18th Congress increasing the excise tax on electronic nicotine delivery system (ENDS) products like e-cigarettes and vaping merchandise. The lawmaker was referring to House Bill 1026, passed last August, which increases the excise tax on vaping products. The measure aims to generate revenue to fund the Universal Health Care (UHC) program of the government and reduce consumption of alcohol products. Under the measure, the specific tax on vapor products with nicotine salts will increase to P30 in 2020 from the current P10 per milliliter, with an incremental P5 yearly increase to P45 by 2023.Once enacted, this measure is expected to generate P33.6 billion in additional revenue for the government in 2020, P42.1 billion in 2021 and P50.3 billion in 2022.
Robredo named anti-drug czar Philippine Star 6th Nov 2019
President Duterte has formally named Vice President Leni Robredo as one of the heads of an inter-agency body on illegal drugs, making good his previous pronouncement that critics said was a trap meant to embarrass her. Robredo, the leader of the opposition and a critic of the war on drugs, was offered the Cabinet-rank post of co-chairperson of the Inter-Agency Committee on Anti-Illegal Drugs (ICAD) until the end of Duterte’s term in 2022, a memorandum signed by the President on Oct. 31 showed. She is expected to announce her response to the offer today. The duration of the appointment was longer than the six months initially floated by Duterte, who made the offer as a response to Robredo’s call for a “tweaking” of his anti-drug campaign, which she had described as “obviously not working.”Presidential spokesman Salvador Panelo said the designation offered to Robredo is a Cabinet-rank position. “The moment she accepts it, she can join us in the Cabinet meeting on Thursday,” Panelo told CNN Philippines yesterday.
Lacson: P20-billion pork in 2020 budget Philippine daily inquirer 5th Nov 2019
Sen. Panfilo Lacson on Monday said the “parked” allocations totaling more than P20 billion in the House of Representatives’ version of the P4.1-trillion national budget for 2020 were actually pork as defined by a Supreme Court ruling in 2013. ork allocations fund pet projects of lawmakers and are a source of kickbacks. Lacson pointed out that the parked funds were actually lump-sum allocations, which the high court had also declared a violation of the 1987 Constitution.
Senate clears agency mandate to buy palay from local farmers | Butch Fernandez BusinessMirror 5th Nov 2019
MAJORITY and minority senators, voting 21-0 at Monday’s session, passed a Joint Senate-House Resolution mandating major government departments and local government units to help promote the rice subsidy program. As passed, the Joint Resolution directs the Department of Social Welfare and Development (DSWD), the Interior and Local Government (DILG), National Defense (DND), Transportation (DOTR), Environment and Natural Resources (DENR) and the local government units to coordinate with the National Food Authority (NFA) and the Department of Agriculture.
Senate to insist on higher excise rates for alcohol, e-cigarettes BusinessWorld 5th Nov 2019
THE Senate Ways and Means Committee said it will stand firm on the rates it seeks to impose on alcohol products and electronic cigarettes, which are higher than the proposed rates in the counterpart House legislation, its Chairman said. Senator Pilar Juliana S. Cayetano said the tax measure has a chance of obtaining approval in the Senate within the year, with the interpellation period set to begin Tuesday.
Senate sets target for 2020 budget OK BusinessWorld 4th Nov 2019
SENATE plenary deliberation on the proposed P4.1-trillion national budget for 2020 will begin on Nov. 11 as the chamber eyes bicameral approval by the first week of December, Senate leaders said on Monday. The House of Representatives, meanwhile, moved to extend the availability of the 2019 national budget until Dec. 31 2020 as it approved on third and final reading House Joint Resolution No. 19. “We’re looking at two weeks of budget deliberation. Hopefully, i-approve on second reading and third reading by Nov. 22,” Senate Majority Leader Juan Miguel F. Zubiri told reporters in a briefing on Monday.
DOLE-led panel on service-fee IRR split on text | Samuel P. Medenilla BusinessMirror 29th Oct 2019
THE Department of Labor and Employment (DOLE) on Monday said it may soon come out with the implementing rules and regulations (IRR) of Republic Act (RA) 11360 or the Service Charge Act. In an interview, Labor Assistant Secretary Benjo M. Benavidez told BusinessMirror the IRR was already presented to the Tripartite Industrial Peace Council (TIPC) and is now ready to be signed by Labor Secretary Silvestre H. Bello III. “It was already discussed at the TIPC, but there was no consensus as to its language,” Benavidez said.
Senate bill pushes for creation of food banks, soup kitchens to address hunger, malnutrition Manila Bulletin 26th Oct 2019
To back this up, Villanueva filed Senate Bill 344 (Pagkain Para sa Lahat Act) where surplus food produced by restaurants, food manufacturers and other food establishments would not go to waste and, instead to the tables of every needy families. He cited the 2016 Annual Survey of Philippine Business and Industry of the Philippine Statistics Authority (PSA) that some 30,889 establishments in the formal sector of the economy were engaged in accommodation and food service, with restaurants leading the sector numbering 7,218 establishments. They are followed by cafeterias with 4,725 establishments and fast-food chains with 4,411 establishments. “On the one hand, the country is facing a crisis in malnourishment and hunger, but on the other, there is a boom in the culinary market. This picture is even made more appalling by the fact that a significant number of food produced in the country does not go to the tables of the people who need it the most and simply ends up in the landfill,” he added.
DOF favors uniform road user tax Philippine Star 24th Oct 2019
The Department of Finance (DOF) favors a uniform road user tax instead of different rates for different types of motor vehicles as proposed by Albay Rep. Joey Salceda, who chairs the House of Representatives committee on ways and means.The road user tax is officially called Motor Vehicle User’s Charge or MVUC, which is paid to the Land Transportation Office (LTO) in the form of increased annual registration fees for the more than 11 million vehicles in the country. Villafuerte and the DOF are both suggesting a uniform MVUC rate based on gross vehicle weight (GVW) of P1.40 in 2020, P1.95 in 2021 and P2.50 in 2022. The gross weight would include the vehicle’s load carrying capacity as certified by the LTO. Under both proposals, the road user tax on a car with a GVW of up to 1,600 kilos would amount to P2,240 on the first year, P3,120 on the second and P4,000 on the third, excluding registration and miscellaneous fees. On the other hand, in Bill 4695, Salceda proposed that the MVUC on the same car would go up from the present P800 under Republic Act 8794 to P2,912 next year, P3,028 in 2021 and P3,056 in 2022.
PEZA: Extend Citira transition to 15 years Manila Times 24th Oct 2019
THE Philippine Economic Zone Authority (PEZA) and various business groups are resolute in their stance to secure a 15-year transition period for the rationalization of fiscal incentives under the Corporate Income Tax and Incentives Rationalization Act (Citira). Philippine Economic Zone Authority Director General Charito Plaza (Photo from the PEZA Facebook page) In a statement on Wednesday, PEZA Director General Charito Plaza said the longer transition period was one of the refinements her agency proposed for Citira — formally called House Bill 4157 — after it held a second dialogue with top sector locators, industry associations and foreign chambers on October 22.
Manufacturing
Factory output sags for the 10th consecutive month in September philstar.com 5th Nov 2019
Philippine factory activity growth contracted for the tenth straight month in September, and the government now pins its hopes on demand during the holiday season and higher infrastructure spending to give the sector a boost. Data released Tuesday by the Philippine Statistics Authority showed manufacturing growth — as measured by the Volume of Production Index (VoPI) — dropped 3% in September from 1.3% increase in the same month last year. The sector has been declining since December last year, when VoPI sagged 9.3%.
Philippine factory conditions peak in October philstar.com 5th Nov 2019
Philippine manufacturing conditions improved in October as production expanded alongside a solid upturn in new orders, according to the latest IHS Markit Purchasing Managers’ Index (PMI). The headline manufacturing PMI for the Philippines rose to 52.1 in October from 51.8 in September, the highest in nine months, and bucking the downtrend in the ASEAN region. The headline PMI provides a quick overview of the health of the manufacturing sector based on the weighted average of five indicators: new orders (30 percent weight), output (25 percent), job creation (20 percent), supplier delivery times (15 percent) and inventories (10 percent). A reading of above 50 in the index indicates improving business conditions while that below 50 indicates deteriorating conditions.
Modest factory improvement marks Oct. Business World 5th Nov 2019
FACTORY ACTIVITY in the country improved “modestly” — though the latest reading was the best in nine months — in October, with bigger output and new orders offsetting record-low business expectations, according to findings of the latest Philippine survey conducted by IHS Markit that were released on Monday. The IHS Markit Philippines Manufacturing purchasing managers’ index (PMI) bared “modest improvement” with a 52.1 reading for October, climbing from the preceding month’s 51.8, “signalling a moderate improvement in the health of the goods-producing sector,” according to a news release on the country report. The latest reading matched that of July and was the best performance since January’s 52.3. Regionwide, the Philippines maintained its second spot among the seven Southeast Asian countries tracked, next to Myanmar’s 53 (up from 52 previously). They were the only two economies in the region that bared upticks from the preceding month. “… [o]nly Myanmar and the Philippines reported an improvement in operating conditions, contrasting heavily with a marked deterioration in Singapore and a further decline in Malaysia,” the regional report quoted IHS Markit Economist Lewis Cooper as saying.
Myanmar
Philippine Billionaire Ayala Doubles Down On Myanmar Through Yoma Strategic Forbes 13th Nov 2019
Two of Southeast Asia’s most prominent business families have announced a new partnership. Philippines' oldest and largest conglomerate Ayala corporation has bought a 20% stake in Singapore-listed Yoma Strategic Holdings (YSH), and 20% of Yangon-listed First Myanmar Investment (FMI), both led by tycoon Serge Pun. The $238 million investment makes Ayala the second-largest shareholder in the group, according to YSH, and is the largest foreign direct investment made by a Philippine company into Myanmar.
Travel & Tourism
Duty Free Philippines offers 5% discount to Pinoy tourists Inquirer 5th Nov 2019
Duty Free Philippines (DFP) has inked partnership with about 50 travel agencies to attract more customers with “value for money shopping.” DFP chief operating officer Vicente Pelagio Angala said the marketing campaign would give a 5-percent discount to outbound tour groups shopping at DFP’s flagship store — the Fiestamall in Parañaque City — within 48 hours upon arrival. Discount vouchers will be provided by DFP’s partner travel agencies to Filipino international travelers (FITs) prior to their arrival in the Philippines.
UPDATE 1-Philippines' Cebu Air signs deal for $4.8 bln Airbus aircraft Reuters 4th Nov 2019
Philippines’ Cebu Air Inc has finalised the purchase of 16 long-range Airbus A330 neo jets worth $4.8 billion at list prices, the airline said on Monday. The budget carrier, which operates 74 aircraft, mostly Airbus A320s, under the brand Cebu Pacific, is turning to larger and fuel-efficient jets for expansion, despite limited slots at the main gateway in the Philippine capital. Scheduled to be delivered between 2021 and 2024, the 16 A330neo aircraft will be deployed on routes in the Philippines, Asia, Australia and the Middle East, Cebu Air said in a statement.
Boracay Beach Inspires New, Foreign-Invested Tourism Zones In The Philippines Forbes 31st Oct 2019
The Philippine government is taking a lesson from the rehabilitation of Boracay that shut down the island paradise for six months last year. Now, the clean and safe state of its famous white-sand beaches is being cited as the inspiration behind government efforts to promote a slate of other master-planned zones for tourism development. And to generate the much-needed capital for those zones, Philippine officials embarked on a roadshow in October to attract more investment from Taiwan, South Korea and Japan. “In terms of the tourism, we want to make sure that what happened in Boracay does not happen in other areas,” says Pocholo Paragas, chief operating officer of the master-planned area’s lead government agency, the Tourism Infrastructure and Enterprise Zone Authority.
Website lists 2 Philippine airports among best in Asia philstar.com 31st Oct 2019
Airport sleepers’ guide and resource website sleepinginairports.net has listed two Philippine airports as among the best in Asia for 2019. Making it to the website’s top 20 Best Airports in Asia for 2019 are the Mactan-Cebu International Airport, which came in at No. 16, and Iloilo International Airport at No. 18.
Philippines 8th favorite country among travelers philstar.com 26th Oct 2019
Foreign visitors’ interest in the Philippines remains strong after the country was voted by readers of travel magazine Conde Nast Traveler as one of the favorite destinations in the world to visit. Based on results of Conde Nast Traveler’s Top 20 Countries in the World: Readers Choice Awards 2019, the Philippines ranked eighth with a score of 90.63.
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