| Multilateral Trade Agreements
DoF expects double-taxation deal with Cambodia soon | BusinessWorld Business World 6th Jan 2020
NEGOTIATIONS for a double-taxation agreement (DTA) are expected to conclude soon with both sides in substantial agreement on many points, the Department of Finance (DoF) said. Undersecretary Antonette C. Tionko said Cambodia has agreed to “the majority of the proposals of the Philippines” on the provisions of their proposed DTA during the second round of negotiations in December. “The negotiation was held in a friendly, cooperative and constructive atmosphere of mutual understanding, with a frank exchange of information and ideas,” according to the DoF-led delegation’s report. A DTA is a tax treaty that seeks to prevent a scenario where individuals and organizations residing or operating in other countries are taxed by both jurisdictions for the same income.
National Affairs
NBI to go after people 'causing panic, undermining government efforts' amid nCoV threat philstar.com 5th Feb 2020
The National Bureau of Investigation will go after people who spread online posts that "[cause] undue panic and alarm" amid the risk posed by the novel coronavirus, Justice Secretary Menardo Guevarra said. He directed the NBI to conduct a case build up against unnamed people "on the alleged deliberate spread of misinformation and fake news about... and false reporting of the [2019 nCoV]." The Justice Secretary explained that his directive aims to avoid “causing undue panic and alarm.” Health Secretary Francisco Duque III earlier called on media: "Let’s not be used by unscrupulous groups whose agenda is to propagate an 'infodemic', or to spread false or baseless information about the disease.
Number of jobless Pinoys drops to 2.1 million — SWS philstar.com 5th Feb 2020
The number of jobless Filipinos dropped by around 2.1 million in the fourth quarter of 2019, according to the latest survey of the Social Weather Stations (SWS). Adult joblessness fell to 17.5 percent or an estimated 7.9 million people in December from 21.5 percent or around 10 million in September last year. The survey was conducted last Dec. 13-16 using face-to-face interviews of 1,200 adults, 18 years old and above, nationwide. The 17.5 percent jobless Filipinos in December consisted of 8.1 percent (an estimated 3.7 million adults) who voluntarily left their old jobs, 3.5 percent (1.6 million) first-time job seekers and 5.9 percent retrenched.
US, Philippines reaffirm alliance, but no mention of VFA philstar.com 1st Feb 2020
The Philippines and the United States have reaffirmed their strong security, cultural and economic ties, days after President Duterte ordered the termination of the Visiting Forces Agreement (VFA). The US State Department reports that PH Foreign Affairs Secretary Teodoro Locsin Jr. and Deputy State Secretary Stephen Biegun reaffirmed “the value of the US-Philippine alliance based on the deep, historic friendship and mutual respect between our two countries” during their meeting in Washington, DC. Duterte’s directive to scrap the two-decade-old VFA came on the heels of the US cancellation of the visa of PH Senator Ronald dela Rosa, one of his closest allies.
China Coast Guard entering foreign waters via artificial islands philstar.com 1st Feb 2020
China is now capitalizing on its artificial island military bases in the West Philippine Sea to advance its massive maritime and territorial claims deeper into Indonesian, Malaysian and Brunei waters in the South China Sea, a US-based think tank reported. In its latest report, the Center for Strategic and International Studies (CSIS) Asia Maritime Transparency Initiative (AMTI) said that Chinese Coast Guard (CCG) ships monitored last month and early this month inside the exclusive economic zones of three Southeast Asian states were either from now heavily fortified Chinese bases at Panganiban (Mischief), Zamora (Subi) and Kagitingan (Fiery Cross) Reefs. “The availability of China’s artificial island bases in the Spratlys for resupply and replenishment has enabled sustained weeks or even month-long deployments to the farthest reaches of the nine-dash line, something that was much more difficult for Chinese vessels in the past,” AMTI said.
DBM issues circulars for 1st tranche of pay increase for government workers under 2019 SSL | Bernadette D. Nicolas BusinessMirror 31st Jan 2020
The Department of Budget and Management (DBM) has finally released the circulars on the implementation of the first tranche of the modified salary schedule for civilian and local government personnel. President Duterte signed Republic Act 11466, or the Salary Standardization Law (SSL) of 2019, modifying the salary schedule for government personnel, which shall be implemented in four tranches from 2020 to 2023.
PHL reports 130 outbreaks of ASF in 300 Luzon barangays | Jasper Y. Arcalas BusinessMirror 31st Jan 2020
THE Philippines has confirmed that the fatal African swine fever (ASF) continued to spread in Luzon, affecting thousands of pigs in northern and southern areas, including Aurora, Tarlac, Nueva Ecija and Cavite, bringing government’s total cull count to almost 200,000 hogs. In a series of new reports to the World Organisation for Animal Health (OIE), the Philippines revealed that nearly 140,000 pigs were susceptible to ASF in 130 outbreaks in Pampanga, Bulacan, Caloocan, Nueva Ecija, Rizal, Cavite and Pangasinan in both commercial and backyard farms in over 300 barangays.
PHL won’t severe trade, investment ties with America, Malacañang says | Samuel P. Medenilla BusinessMirror 31st Jan 2020
Philippines’s trade relations with the US remain insulated from the latest government efforts to “tone down” its relations with the Western superpower. At a news briefing on Thursday, Presidential spokesman Salvador S. Panelo clarified President Duterte has not ordered to severe the country’s economic ties with the US. However, he confirmed President Duterte’s pronouncement to bar Cabinet members, except those from the Department of Foreign Affairs (DFA), from traveling to the US, would take effect.
Philippines drops in global corruption index Business World 24th Jan 2020
THE Philippines slipped 14 spots in a global corruption index released on Thursday by Transparency International, which said “a staggering number of countries are showing little to no improvement in tackling corruption.” In the Corruption Perceptions Index (CPI) 2019, the Philippines was tied with El Salvador, Kazakhstan, Nepal, Eswatini and Zambia for 113rd place out of 180 countries and territories.
Joint circular spells out LGSF-FA priority spending items for LGUs | Bernadette D. Nicolas BusinessMirror 8th Jan 2020
The Department of Budget and Management (DBM) and the Department of the Interior and Local Government (DILG) have signed a joint memorandum circular stating the guidelines for the purchase of multi-cabs and/or multipurpose vehicles, as well as the installation of video surveillance. The joint memorandum circular was released on Monday after President Duterte placed under conditional implementation the use of Local Government Support Fund-Financial Assistance (LGSF-FA) to local government units (LGUs) for the said purpose. Under the 2019 General Appropriations Act (GAA), an amount of P8.75 billion shall be used for financial assistance to LGUs to support various priority programs and projects, which include the purchase of multi-cabs and or multipurpose vehicles, as well as the purchase and installation of video surveillance.
DILG to push for P10-billion BFP modernization fund BusinessMirror 8th Jan 2020
Department of the Interior and Local Government (DILG) Secretary Eduardo Año on Tuesday said he will push for the allocation of P10 billion for the modernization of the Bureau of Fire Protection (BFP). Año said one of the vital components of the modernization program is to ensure that all municipalities have their own fire trucks and fire stations, modern equipment and apparatus, and 7-foot fire truck ladders. In November last year, the House Committee on Public Order and Safety approved a substitute bill that would provide a P10-billion fund allocation for the modernization program of the BFP.
DoJ’s Guevarra urges water firms to accept ‘fair’ new contracts | BusinessWorld Business World 8th Jan 2020
JUSTICE SECRETARY Menardo I. Guevarra urged Metro Manila water concessionaires not to “play hardball” after President Rodrigo R. Duterte offered the service providers new agreements under threat of nationalization and possible plunder and fraud charges. Mr. Duterte on Tuesday called on Manila Water Co., Inc. and Maynilad Water Services, Inc. to accept the new contracts, which the government considers to be free of the original onerous provisions. He raised the prospect of nationalization and plunder or fraud prosecutions for the parties that negotiated the contract.
‘Game changer’ in judicial system to be enforced | Butch Fernandez BusinessMirror 7th Jan 2020
THE Supreme Court is poised to implement a new law, authored by Sen. Richard Gordon, assigning judges-at-large to effectively decongest clogged court dockets and bury the old saying that “justice delayed is justice denied.” Describing the Judges-at-Large law embodied in Republic Act 11459 as “a game changer in the justice system,” Gordon, concurrent chairman of the Senate Committee on Justice and Human Rights, expects its awaited implementation to improve the judicial system, easing the overload of cases in trial courts all over the country.
DFA ‘ready’ to transfer OFW if US-Iran tensions escalate | Recto Mercene BusinessMirror 6th Jan 2020
THE Department of Foreign Affairs (DFA) said it is ready to evacuate Filipinos willing to leave Iraq in the wake of heightened tension in the Middle East following the assassination of top Iranian general Qassem Soleimani in a drone strike ordered by US President Donald J. Trump.
Duterte signs ₱4.1-T national budget for 2020 CNN Philippines 6th Jan 2020
President Rodrigo Duterte has signed into law the ₱4.1-trillion national budget for 2020. He signed Republic Act 11465 or the General Appropriations Act, which authorizes the release of funds for new and continuing government projects and programs as approved by Congress. The six-day delay is much shorter compared to 2019, when the passage of the spending plan stalled for four months.The P4.1 trillion general appropriations is said to be the country’s largest budget to date, greater by 12% than the 2019 budget. A bulk of the budget or P1.495 trillion is earmarked for the social services sector. Meanwhile, P1.2 trillion is allocated for economic services which will be used for infrastructure development.
ASEAN
China turned to ASEAN to cover US trade dip Nikkei Asian Review 14th Jan 2020
ASEAN has emerged as a key export destination for China as President Xi Jinping's administration endures a bruising trade war with the U.S. Chinese exports to the U.S. dropped 12.5% for 2019, while imports from the U.S. plunged 20.9%, in dollar-denominated goods trade statistics released Tuesday in Beijing by the General Administration of Customs -- the biggest falls in data going back to 1984. But even as tit-for-tat tariffs pounded bilateral trade, China clearly boosted its trade with the rest of the world, especially members of the Association of Southeast Asian Nations, to offset the dent. Exports to Vietnam grew 16.7% for the year, while those to the Philippines, Malaysia and Singapore rose 16.3%, 14.9% and 11.6%. As a result, America's share of Chinese imports and exports declined to 11.8% in 2019 -- a 27-year low that traces back to 1992, when the sanctions over the Tiananmen Square crackdown were in full force. Meanwhile, the European Union and ASEAN increased their shares, with the latter overtaking the U.S. to account for 14% of China's imports and exports. U.S. International Trade Commission data shows that Chinese game console exports to the U.S. in the first 11 months of the year dropped 36%. Meanwhile, Vietnam's game exports to the U.S. grew from zero in 2018 to around $200 million in 2019. Separate data shows that game exports from China to Vietnam increased around 80% for the August-November period. The fourth round of U.S. tariffs on Chinese goods was announced in August. The statistics suggest that products from China pass through Vietnam to avoid the American tariffs.
Asean consumer sector set for soft start to 2020: DBS The Business Times 6th Jan 2020
ASEAN'S consumer sector is set to have a soft start to 2020, with the outlook "dampened by macro headwinds and soft consumer sentiments", according to a Jan 6 DBS Group Research report. The Philippines seems like the main outlier, with an expected rebound after consumption was hit in 2018-2019. Even though Singapore, Malaysia, and Thailand are expected to see a pick-up in gross domestic product growth this year, this will still be below the countries’ historical trend, said the DBS analysts.
Banking
Property price hikes pose rising risk to banks | BusinessWorld Business World 8th Jan 2020
PROPERTY PRICE hikes fueled by the Philippine offshore gaming operators (POGO) sector may pose increasing risks to the banking industry, according to Fitch Ratings. “Recent data point to speculative activity that could affect market stability if unchecked,” Fitch said in a note sent to reporters on Wednesday. “To the extent that the increase in prices has been driven by a boom in the Philippine online gaming operator sector, it may also expose banks and the property industry to greater policy risk.” Fitch noted that prices of residential properties rose 10% year on year in the third quarter of 2019, making it one of the strongest growth prints in any major real estate market since 2010.
Yields on term deposits decline on safe-haven demand amid concerns Business World 8th Jan 2020
YIELDS ON term deposits slipped on Wednesday on the back of higher bids as the central bank gave the market fresh signals it would ease monetary policy further this year and amid escalating geopolitical tensions in the Middle East, which may have caused investors to put their money in safer havens. Bids for the term deposit facility (TDF) of the Bangko Sentral ng Pilipinas (BSP) totaled P276.224 billion on Wednesday, well above the P120 billion on offer, according to data from the central bank. This week’s total tenders also exceeded the P153.434 billion in bids the central received last week against the P90 billion on the auction block. Banks’ tenders for the seven-day deposits amounted to P102.182 billion, surpassing the P40 billion auctioned off by the central bank and also higher than the P48.605-billion tenders seen last week for the P30 billion on offer.
Customs
Philippines joins ASEAN Single Window Business World 3rd Feb 2020
The Philippines has officially joined the ASEAN Single Window (ASW) and went live last Dec. 30 via its three pilot ports, the Department of Finance (DoF) said. In a statement on Friday, DoF Undersecretary Gil S. Beltran said through the three pilot ports, the Bureau of Customs (BoC), its Export Coordination Division (ECD) and Export Divisions have started issuing electronic Certificate of Origin (eCO) through the country’s national single window (NSW) — the TRADENET.gov.ph platform. The three pilot ports are the Port of Manila (POM), Manila International Container Port (MICP) and the Ninoy Aquino International Airport (NAIA). According to Mr. Beltran, going live on the ASW will reduce communication costs by as low as 10% of the initial costs.
Defense & Security
New Navy chief wants 'modern systems, mindsets' as new assets replace ailing ships Rappler 5th Feb 2020
Speaking as he assumed command of the 25,000-strong Navy on Monday, February 3, at their headquarters in Manila, Philippine Navy's new Flag Officer-in-Command, Rear Admiral Giovanni Carlo Bacordo presented a detailed plan of how he intends to thoroughly modernize the service, now the focus of Horizon 2 of the Armed Forces of the Philippines' (AFP) three-tiered, P300-billion Modernization Program. Bacordo emphasized the need to train the Navy's sailors and marines in thinking and operating in ways that maximize its new acquisitions, which would entail updating the Navy's support infrastructure like shipyards and harbors, as well as its recruitment and training processes.
'Still speculative': Nograles says there's no plan yet to renegotiate VFA philstar.com 5th Feb 2020
There is no plan yet to renegotiate the Visiting Forces Agreement (VFA) with the United States (US), Malacañang said Wednesday, after senators urged President Rodrigo Duterte to reconsider his decision to terminate the decades-old pact. Last month, Duterte announced that he is scrapping the VFA in response to the cancellation of the US visa of senator Ronald dela Rosa. Other reasons cited by Malacañang are the demand by some US senators to free detained opposition Sen. Leila de Lima; the US Senate resolution condemning the alleged human rights violations in the Philippines; and the introduction of a US national budget provision that ban from the US people behind De Lima's detention. Three senators - Senate President Vicente Sotto III, Minority Leader Franklin Drilon and Panfilo Lacson - have filed a resolution asking Duterte to reconsider his decision to abrogate the VFA while the Senate is reviewing and assessing the impact of the defense pact.
Indonesia rejects China's claims over South China S3e Reuters 3rd Jan 2020
Indonesia said on Wednesday it rejected China’s claims over a disputed part of the South China Sea as “having no legal basis”, after two days earlier protesting to Beijing over the presence of a Chinese coastguard vessel in its territorial waters. The boat trespassed into Indonesia’s exclusive economic zone off the coast of the northern islands of Natuna, leading Indonesians officials to issue a “strong protest” and summon the Chinese ambassador in Jakarta. Speaking in Beijing on Tuesday, Chinese Foreign Ministry spokesman Geng Shuang had said China had sovereignty over the Spratly Islands and their waters and that both China and Indonesia have “normal” fishing activities there. In a sharp rebuke, Indonesia’s foreign ministry called in a statement on Wednesday for China to explain the “legal basis and clear borders” regarding its claims on the exclusive economic zone, as based on the 1982 United Nations Convention on the Law of the Sea (UNCLOS).
PH sets partial ban on maids to Kuwait Daily Inquirer 3rd Jan 2020
The government is set to impose a partial ban on labor traffic to Kuwait, after another Filipino maid was killed by her employer in the oil-rich Gulf state.Labor Secretary Silvestre Bello III said on Thursday that the ban was recommended by Labor Attaché Nasser Mustafa and subject to the approval of the board of the Philippine Overseas Employment Administration (POEA). Bello is chair of the POEA board.He said the ban would cover only new migrants who would work as maids in Kuwait. It would not affect skilled and vacationing workers, he added. Clear message to Kuwait “This should serve as a clear message to Kuwaiti authorities. The partial ban may ripen into total deployment ban if justice for Jeanelyn Villavende is not met,” Bello said in a statement.
Economics
POGOs to overtake IT-BPM as major real estate driver — JLL philstar.com 5th Feb 2020
The Philippine offshore gaming operators (POGOs) is seen overtaking the IT and business process management (IT-BPM) industry as the main real estate driver this year. Top executives of JLL Philippines, the country’s premier real estate services firm, said office take-up of POGOs has been increasing since 2017, growing at a faster pace than the IT-BPM sector. Aside from the continued momentum of the online gaming industry and its effects to related sectors, JLL said the real estate market will also be defined by other prominent factors such as the demand for sustainability, government policies, and emerging lifestyle trends and technology. However, IT-BPM demand is still stable and will remain the leading real estate demand driver in Metro Manila, mainly due to developments in the POGO industry in 2019, including government restriction of new applications, crackdown on illegal Chinese online gaming activities, and rise in tax collections.
Philippines Central Bank Chief Says Better to Cut Rates Soon Bloomberg 5th Feb 2020
Philippine central bank Governor Benjamin Diokno said it would be better to cut interest rates sooner than later, a signal that policy makers will likely lower borrowing costs Thursday. Since monetary policy works with a lag and the central bank is mindful of risks to global growth from the coronavirus outbreak, it’s preferable to act the “sooner the better." The Bangko Sentral ng Pilipinas is seen lowering its key interest rate by 25 basis points Thursday to 3.75%, according to 17 of 25 economists in a Bloomberg survey.
Inflation likely quickened in January | BusinessWorld Business World 2nd Feb 2020
INFLATION likely quickened further in January mainly on the back of an uptick in food prices, some supply side shocks from the Taal Volcano eruption and continued diminishing base effects, analysts said in a BusinessWorld poll, with the central bank seen easing rates this week ahead of emerging risks to prices. A poll held last week among 13 economists yielded a 2.7% median estimate for January headline inflation, close to the lower end of the 2.5% to 3.3% estimate range given by the Bangko Sentral ng Pilipinas (BSP) last Friday. If realized, this would be the third consecutive month of faster inflation and will be a pickup from the 2.5% pace logged in December. However, this is still slower compared with the 4.4% logged in January 2019 and is well within the 2-4% target for the year.
Gov’t hoping talks with China could spur faster disbursement of ODA | BusinessWorld Business World 2nd Feb 2020
MORE MEETINGS with the Chinese government could help address the “slow pace” of disbursement of official development assistance (ODA), a top official said. “Actually, the ODA coming from China has been rather slow,” Socioeconomic Planning Secretary Ernesto M. Pernia said in a forum on Friday. So far, the only ongoing China-funded projects are the Chico River Dam irrigation project in Cagayan Valley and the Kaliwa Dam project which “has barely started,” Mr. Pernia said. “Compared with Japan, Japan International Cooperation Agency (JICA) ODA has been much faster, there are so many projects now being funded that are ongoing,” he said.
Economy may suffer from prolonged coronavirus outbreak | BusinessWorld Business World 2nd Feb 2020
PHILIPPINE economic growth is likely to take a hit from a global coronavirus outbreak, with trade and tourism bearing the brunt, according to a Union Bank of the Philippines, Inc. note. The country’s gross domestic product (GDP) growth could decline by 0.3% to 0.8% this year “if and when the outbreak lasts at least six months,” the lender’s Economic Research Unit said in a note emailed on Friday. The estimate is based on the severe acute respiratory syndrome (SARS) outbreak in 2002 to 2003 when growth rates of Southeast Asian economies declined by an average of 0.5% when the situation lasted for seven months, the bank said. The Philippine economy grew by 5.9% last year, its slowest pace in eight years and missing the government’s minimum goal of 6%.
BSP eyes at least 50 bps policy rate cuts this year | BusinessWorld Business World 30th Jan 2020
THE CENTRAL BANK is still looking to cut rates by at least 50 basis points (bps) this year, its chief said on Thursday. Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said while the central bank will remain “data dependent,” it still has “a long way to unwind” the policy tightening it did in 2018 to quell inflation. Asked whether the central bank will still cut rates at least by 50 bps as he said in December, Mr. Diokno told reporters at a briefing held at BSP on Thursday: “50 basis points this year? Yes. Still.” Mr. Diokno has also said a 25-bp cut is possible as early as this quarter. The BSP Monetary Board will hold its first policy meeting for the year on Feb. 6. Its other review for the quarter is on March 19.
Investors troop to year’s first RTB issue; P134 billion awarded | Bernadette D. Nicolas BusinessMirror 29th Jan 2020
THE Bureau of the Treasury (BTr) has awarded an initial P134 billion worth of three-year retail treasury bonds (RTBs), which is almost five times oversubscribed from the P30-billion offering. The coupon rate for the IOU—the 23rd tranche of RTBs offered by the government and the first for 2020—was set at 4.375 percent, with tenders amounting to P149.827 billion. For minimum denominations of P5,000, the general investing public could take advantage of the issuance, which will be offered until February 6, 2020. National Treasurer Rosalia V. de Leon said the increasing participation in the RTBs and the recently issued Premyo (prize) Bonds shows that the government is charting the right path in making basic investment products accessible.
Peso strengthens as oil prices decline amid China virus fears | BusinessWorld Business World 28th Jan 2020
THE PESO appreciated on Tuesday as oil prices went down amid worries related to the coronavirus’ spread and with investors going profit taking. The local unit finished trading at P50.75 per dollar on Tuesday, strengthening by 8.50 centavos from its P50.835 close on Monday, according to data from the website of the Bankers’ Association of the Philippines. The peso opened at P50.90 against the greenback. The peso’s weakest point for the day was at P50.925 a dollar, while its intraday best was at P50.74. Dollars traded declined to $778.10 million from $787.95 million on Monday.
Gov’t raises P134B from RTB sale | BusinessWorld Business World 28th Jan 2020
THE government raised P134 billion from its 23rd offer of retail Treasury bonds (RTBs), which was met with firm demand amid strong liquidity in the market. The Bureau of the Treasury (BTr) awarded P134 billion worth of three-year RTBs at the rate-setting auction for the papers out of total bids worth P149.827 billion. This was almost five times the initial offer of P30 billion, prompting the government to upsize the acceptance. The papers were quoted at a coupon of 4.375%, higher compared to the 4.25% coupon fetched for the three-year RTBs issued last April 2017 or RTB 3-08 as well as the 4.274% quoted for the tenor at the close of the secondary market yesterday. Proceeds from the issue will be used for general budgetary purposes including the state’s critical infrastructure projects and social services.
Gov’t eyes P37B in sin taxes this year for health care | BusinessWorld Business World 28th Jan 2020
THE Department of Finance (DoF) expects to collect P37.2 billion in so-called sin taxes this year after a measure was enacted raising the tax on alcohol products and cigarettes. The government would probably collect a total of P263.1 billion in the five years through 2024 “to help ensure that universal health care is better funded,” Finance Undersecretary Karl Kendrick T. Chua said at a briefing on Tuesday. President Rodrigo R. Duterte has signed into law the bill raising the tax on alcohol products, electronic cigarettes and other vapor products. Regular tobacco products were also slapped with higher excise tax under a Juy 2019 law. Finance officials had projected a P62-billion funding gap for universal health care this year without higher sin taxes, and a P426-billion total gap through 2024.
Timely budget passage to boost 2020 economic growth: Pernia Philippine News Agency 23rd Jan 2020
Government economic planners are optimistic about hitting this year’s gross domestic product (GDP) target of 6.5 percent to 7.5 percent after the economy expanded slightly lower than the target band in 2019 due to the delayed national budget approval. The Philippine economy expanded by 6.4 percent in the fourth quarter of 2019, bringing the full-year economic growth to 5.9 percent that was the slowest in eight years and modestly below the low-end of the government’s 6.0-6.5 percent revised target for the year. The GDP grew by 6.2 percent in 2018.
Third-quarter 2019 GDP growth scaled down | BusinessWorld Business World 22nd Jan 2020
THE PHILIPPINE ECONOMY in the third quarter grew at a slower pace than previously reported, the Philippine Statistics Authority (PSA) said a day before it announces preliminary figures for the fourth quarter and full-year 2019. Gross domestic product (GDP) — the value of all finished goods and services produced in the country — expanded by six percent in the July-September period, slower than the preliminary 6.2%, the PSA said yesterday. This brought 2019’s first three quarters’ pace to 5.7% from 5.8% initially, against the government’s revised 6%-6.5% target for the year. In a mobile phone message, Socioeconomic Planning Secretary Ernesto M. Pernia said he remains hopeful in achieving the 6%-6.5% growth target for 2019 despite the downward revision.
GDP growth seen picking up this year | BusinessWorld Business World 9th Jan 2020
AFTER a projected slowdown in 2019, the Philippine economy is expected to grow faster this year due to strong government spending, but may still fail to meet the official target amid domestic and external headwinds. In a report released on Thursday, Moody’s Investors Service said the country’s gross domestic product (GDP) growth will likely stand at 5.8% and 6.2% in 2019 and 2020, respectively, steady from the projections it gave after maintaining the country’s sovereign rating of Baa with a stable outlook in October.
Confed maintains stand against sugar importation | Jasper Y. Arcalas BusinessMirror 8th Jan 2020
The Confederation of Sugar Producers (Confed) stood pat on its position that importation is not the solution in reducing the retail price of the sweetener after new talks of imports between food processors and government emerged recently. In a news statement issued on Tuesday, Confed emphasized that importation “is not the answer to alleged high cost of domestic sugar.” “Rather, the Department of Trade and Industry [DTI], along with the Sugar Regulatory Administration [SRA], should resolve the issue of sugar prices as they are mandated without killing the local sugar industry,” Confed Spokesman Raymond Montinola said.
Palace: December inflation still within target | Samuel P. Medenilla BusinessMirror 8th Jan 2020
Malacañang downplayed on Tuesday the uptick in inflation rate last month, asserting that inflation level still falls within government target. Citing the latest data from the Philippine Statistics Authority (PSA), Presidential Spokesman Salvador S. Panelo said the rise in inflation rate to 2.5 percent on December 2019 from the 1.3 percent on November on the same year should not be a cause for alarm.
Veto-less budget message imposes conditions | BusinessWorld Business World 8th Jan 2020
THE NEWLY SIGNED 2020 national budget amounting to P4.1 trillion passed without any veto from President Rodrigo R. Duterte, though he imposed conditions on some spending items. According to the President’s budget message released late Tuesday, Mr. Duterte specified “conditional implementation” for some items in the 2020 General Appropriations Act (GAA). The Department of Budget and Management said according to its evaluation, the 2020 budget has no vetoable provisions, but added that some items could be subject to conditional implementation to remain compliant with budget rules. In a budget briefing Wednesday, the DBM’s Director for Legal Services Ryan S. Lita said no items in the 2020 General Appropriations Fund (GAA) were likely to be vetoable.
Inflation for poorest Filipinos slowed–PSA | Cai Ordinario BusinessMirror 7th Jan 2020
THE poorest Filipinos continued to experience some reprieve from high-commodity prices as inflation for the bottom 30 percent slowed year-on-year in November 2019, according to the Philippine Statistics Authority (PSA). Inflation for the poorest Filipinos slowed to 1.7 percent in November 2019 from 8.3 percent in November 2018. However, November inflation was higher than the 0.8 percent posted in October 2019. This marked the first increase in inflation after five consecutive months of slowdown.
DTI to entreps: Venture into $3.3-trillion global halal market | Elijah Felice Rosales BusinessMirror 7th Jan 2020
The Department of Trade and Industry (DTI) is urging enterprises to invest in halal business this year, enticing them to penetrate a multitrillion-dollar market that the Philippines has yet to maximize. Trade Secretary Ramon M. Lopez recommended those looking for business ideas this year to venture into the halal market. As the chairman of the Halal Export Development and Promotion Board, a policy-making body made up of public and private sector representatives, the trade chief said the halal market has the potential to attract more tourists to the Philippines
Philippines' Duterte speeds through $80 billion 2020 budget, spending up 12% Reuters 6th Jan 2020
Philippines President Rodrigo Duterte on Monday signed a record 4.1 trillion peso ($79.97 billion) budget for this year, ensuring timely funding for an infrastructure overhaul in one of the fastest growing economies in Asia. Total spending was 12% higher from 3.66 trillion pesos in 2019. Of this year’s budget, 38% was allotted for education, healthcare, housing and social welfare; 29% for infrastructure, tourism, trade, job generation and agriculture; and 11% for debt payments, Duterte said.
Palace says review of water contracts won’t affect investor confidence | Samuel P. Medenilla BusinessMirror 6th Jan 2020
Malacañang on Monday shrugged off concerns that its review of the allegedly onerous contracts of Maynilad Water Services Inc. and Manila Water Company, Inc. would drive away potential investors. In a media briefing, Presidential spokesperson Salvador S. Panelo said the review would actually benefit the country by cementing its reputation of recognizing only legal business arrangements. “They (investors) should be glad the government does not allow contracts which are against the interests of Filipinos. So they are already forewarned that contracts against the law, the Constitution, and general welfare of the Filipinos,” Panelo said.
Govt tracks price hikes amid Mideast tension BusinessMirror 6th Jan 2020
THE country’s trade chief has warned that the brewing geopolitical tensions in the Middle East could put pressure on producers to increase their prices, as world oil rates surged on Friday after a United States strike killed an Iranian military leader and Iran vowed retaliation. Trade Secretary Ramon M. Lopez told reporters that suppliers of basic goods have yet to petition for a new round of price hikes this year, but the escalation of the situation in Iran and Iraq, two major oil producers, could affect Philippine fuel rates and compel manufacturers to increase their prices. Friday’s spike in oil prices following the heightened tensions after the US attack also sparked fresh calls for the Philippines to be ready to move to safety thousands of overseas Filipino workers (OFWs) in the Middle East who might be affected by the brewing new crisis.
With 2020 budget signed, focus shifts to checking agencies’ spending BusinessMirror 6th Jan 2020
FOLLOWING the signing of the P4.1-trillion General Appropriations Act for 2020, lawmakers on Monday said Congress will closely watch how well and how fast the government agencies spend the budgets by checking their absorptive capacity.Deputy Speaker Michael Romero of 1-Pacman said Filipinos should see more classrooms, school buildings, bridges, roads, and other key infrastructure built left and right in the coming months with the huge allocations in the national budget.“The DBM has proven it can release the funds fast, but it is the capacity of each agency to spend the funds timely and as authorized that must be the focus of each head of agency,” he said.He also said the Pantawid Pamilyang Pilipino Program and other social programs, as well as all those budgeted additional plantilla positions, new school buildings, new roads, should be spent according to the budgets without delay for maximum economic growth and poverty reduction impact. In welcoming the signing of the 2020 budget, Senator Juan Edgardo Angara said lawmakers share a bicameral consensus to avert a repeat of the delayed enactment of the 2019 annual budget law, which was blamed for the slower-than-expected growth in the first half. He said the 2020 GAA may be described as the first legacy budget of the Duterte administration. He predicted that in the last three years of the Duterte administration, “there will be an uptick in the implementation of infrastructure projects, particularly the flagship projects, which are meant to improve the every day lives of the people.” Angara confirmed that under the 2020 GAA, the Department of Public Works and Highways (DPWH) was given “a net increase of P51.139 billion” for various projects. “The idea is to complete as many projects as possible by the time President Duterte ends his term in 2022,” the senator said, adding: “For the more complex projects, the plan is to get the ball rolling already so that the next administration will just continue these and complete them during their term.” He noted that education and social services, described as “two key areas that are important to the President,” were also given priority in the 2020 GAA. Moreover, Angara recalled that Congress wanted to remove all the obstacles to children getting a proper education—be it due to poverty, geographical isolation or other reasons while the conditional cash transfer or the Pantawid Pamilyang Pilipino Program will continue as part of the government’s efforts to reduce poverty in the country. Benefits due to the senior citizens, including the social pension of P6,000 annually, will still be funded in the 2020 budget.
2020 budget signing seen boosting PHL growth | Jovee Marie de la Cruz BusinessMirror 6th Jan 2020
LAWMAKERS on Sunday said the expected signing of the proposed P4.1-trillion General Appropriations Act today (Monday) by President Duterte will help the government boost the country’s growth momentum. House Majority Leader Martin Romualdez said the 2020 national budget was crafted to attain a much better economy to make comfortable the life of Filipinos by hitting “A” credit rating before the President steps down in 2022.
Inflation likely extended uptrend | BusinessWorld Business World 6th Jan 2020
INFLATION likely continued to pick up in December due to seasonal demand amid the holidays, as well as diminishing base effects from 2018’s highs, according to analysts. A BusinessWorld poll of 13 economists last week yielded a median estimate of 2.1% for December headline inflation. If realized, the rate will be near the lower end of the central bank’s forecast range of 1.8-2.6% for the month. This compares with the 1.3% print logged in November, which was the first uptick following five straight months of slowing inflation — even hitting a low of 0.8% in October — due largely to base effects. In the first 11 months of 2019, the overall rise in prices of widely used goods averaged 2.5%, above the midpoint of the BSP’s 2-4% target for the year.
Energy
Philippines steps up security to shield power grid from foreign control Reuters 3rd Feb 2020
The Philippines is beefing up security protocols to protect its energy sector from foreign interference, its national security adviser said, following concerns raised by some of the country's politicians about China's access to the country's power grid. China's State Grid Corporation owns a 40% share in a consortium called the National Grid Corporation of the Philippines, which in 2008 won a 25-year-franchise.
Meralco unit Spectrum to double its installed power capacity this year | BusinessWorld Business World 28th Jan 2020
THE renewable energy subsidiary of Manila Electric Co. (Meralco) is targeting to double its installed capacity this year and reach a total of 40 megawatts (MW), as more residential customers turn to solar rooftop systems to power their homes. “We’re close to 20 MW already of installed capacity for Spectrum,” Victor S. Genuino, president and chief executive officer of Meralco unit MSpectrum, Inc. told reporters after the launch of a solar rooftop project on Monday. He said the company has a “big target” this year, including the expansion of its microgrid facilities on Isla Verde and Cagbalete islands.
Energy regulator approves reduction in feed-in tariff allowance | BusinessWorld Business World 28th Jan 2020
THE Energy Regulatory Commission (ERC) said Tuesday that it approved a feed-in tariff allowance (FiT-All) of P0.0495 per kilowatt-hour (kWh), or lower than what was applied for by the government corporation that handles the collected amount from consumers. “The ERC, in computing the 2019 FiT-All rates, made use of the actual generation billed and the actual cost recovery rate from January until August 2019, among others,” ERC Chairperson and Chief Executive Office Agnes VST Devanadera said in a statement. The regulator said the approved rate is lower by P0.1976 per kWh compared with the P0.2471 per kWh rate proposed by National Transmission Corp. (TransCo) for 2019. It will also be lower than the P0.1731 per kWh reduction from the current or 2018 FiT-All rate of P0.2226 per kWh.
PHL oil output down to 776,093 barrels in 2019, DOE data shows | Lenie Lectura BusinessMirror 23rd Jan 2020
Oil production in the Philippines last year declined to 776,093 barrels compared to the previous year’s 1.26 million barrels, data from the Department of Energy (DOE) showed. Data showed there are four sites where oil is being sourced. These are Nido, Matinloc, Galoc and Alegria oil fields. Among them, Galoc oil field produced the most with 744,449 barrels; Alegria with 9,468; Nido with 20,634; and Matinloc with 1,542. Nido and Matinloc oil fields, both located in Northwest Palawan, ceased production activities last year. Nido’s last production was in April with 18 barrels. Matinloc produced 678 and 864 barrels in January and February, respectively. In over four decades of production operations, Nido and Matinloc were able to produce 18.9 million barrels of oil and 12.5 MMBO, respectively. The oil fields are no longer commercially viable.
Chevron ‘open’ to talks but DoF wants gov’t control of leased lot | BusinessWorld Business World 22nd Jan 2020
CHEVRON Philippines Inc. said on Wednesday that its lease contract with a subsidiary of state-led National Development Co. (NDC) had been beneficial for both the government and the company, with the deal entered into “in compliance with all Philippine laws and regulations.” The company, the local unit of US energy firm Chevron Corp., made the statement after the Department of Finance (DoF) said on Tuesday that it had found “onerous” provisions in the contract as Chevron Philippines is paying lower-than-market value in rental fees on a state property in an industrial park in San Pascual, Batangas. On Wednesday, the department said in had recommended to the board of NDC to shut down its subsidiary Batangas Land Co., Inc. (BLCI), with which Chevron Philippines forged the contract, by 2021 to allow the government to take back its 120-hectare or 1.2 million square meter (sq. m.) property. The DoF said the “sprawling” Batangas property is now valued at around P4.9 billion to P5.3 billion. Chevon Philippines is using the property as an oil import terminal, it said. It called the company’s 74 centavos per sq.m. monthly lease as “measly” for being only 4% of what it said to be the current monthly fair market rental estimate of P17.90 per sq. m.
Philippines regulator consults on new green energy auctions and tariffs PV Tech 21st Jan 2020
The Philippines' Department of Energy (DOE) has called for comments on a draft programme that brings in new rules for renewable energy auctions and a green energy tariff. The main aims are to enable compliance with the Renewable Portfolio Standard (RPS) that will be enforced this year. The RPS mandates power firms to have a minimum percentage of their power generation coming from renewables, with penalties for non-compliance. President Duterte has been pushing to reduce the country's reliance on coal while simultaneously aiming to double its power supply by 2030 to support its growing economy. The draft circular, ‘Promulgating the Rules and Guidelines Governing the Green Energy Tariff Program (GETP) in the Philippines’, considers how the DOE can play a role in helping this RPS compliance by setting certain market mechanisms.
More RE projects in Mindanao pushed Mindanao Times 20th Jan 2020
The Mindanao Development Authority (MinDA) has reiterated its call for companies to put up renewable energy projects especially if the wholesale electricity spot market (WESM) eventually becomes operational. Assistant Secretary Romeo M. Montenegro, MinDA deputy executive director, hopes that the passage of the Energy Virtual One-Stop Shop (EVOSS) Act last year will pave the way for the entry of more renewable energy projects to balance the energy mix in the island. EVOSS, an online portal which helps in facilitating renewable energy projects, is an expansion of the virtual one-stop shop facilitation center that the MinDA, with the assistance of the United States Assistance for International Development-funded Building Low Emission Alternatives to Develop Economic Resilience and Sustainability, started implementing in 2016. The agency has sustained the operations of the center even as the assistance has been stopped.
Ayala energy arm investing P1.86B in Laguna solar farm | BusinessWorld Business World 15th Jan 2020
AC Energy Philippines, Inc. is investing up to P1.86 billion in a company that is developing a 120-megawatt (MW) solar farm in Laguna, the Ayalas’ energy arm in the country told the stock exchange on Tuesday. The company said it had signed an agreement with SolarAce1 Energy Corp. to subscribe to the latter’s 6 million Class A common shares and 180 million Class A redeemable preferred shares (RPS). It provided details on the planned solar plant investment in first disclosed on Oct. 10, 2019.
DOE steps up on learning gas market policies from US, Asian peers Manila Bulletin Business 13th Jan 2020
With high anticipation that the Philippines will eventually have a reboot of its gas industry into a market catered to by imported liquefied natural gas (LNG), the Department of Energy (DOE) is also stepping up on its learning process when it comes to policies and regulation frameworks of the changing landscape of global gas markets. The Oil Industry Management Bureau (OIMB) of the DOE, which will oversee the downstream gas sector, had just recently discussed, learned and exchange views with peers from the US State Department’s Bureau of Energy Resources, as well as with industry-collaborators in the Asian region – including gas facility-operators and energy regulators from Bangladesh, Pakistan, Sri Lanka and Vietnam.
Provincial renewable energy council pushed in Antique Philippine News Agency 9th Jan 2020
The Provincial Board of Antique is pushing for the creation of the Provincial Renewable Energy Council as Vice Governor Edgar Denosta on Thursday sponsored a resolution banning coal-fired power plants in the province. Denosta, in sponsoring “Resolution Expressing Vehement Opposition and the Banning of the Construction, Development, and Operation of Coal-Fired Power Plants in the Province of Antique”, said coal-fired power plants are the largest emitter among primary electricity generation sources aside from being injurious to health. He added that the Renewable Energy Act of 2008 encourages the utilization of renewable energy sources to reduce harmful emissions.
January Meralco rates to go down | BusinessWorld Business World 8th Jan 2020
HOUSEHOLDS in Metro Manila can expect a decrease in their electricity bills in the first month of 2020, with typical households set to see a reduction of P82, the Philippine capital’s largest power distribution utility said on Wednesday. Manila Electric Co. (Meralco) in a statement said the overall electricity rate will drop by P0.41 per kilowatt-hour (kWh) to P9.4523 per kWh in January, from last month’s P9.8623 per kWh. Those consuming 200 kWh — who make up the largest residential customer segment — will see their bills reduced by P82. Those using 300 kWh, 400 kWh and 500 kWh can expect their monthly bill to go down by P123, P164 and P205, respectively.
Kyushu Electric to join electricity project in Philippine islands ABS-CBN News 8th Jan 2020
Kyushu Electric Power Co. said Wednesday it will join a project set up by a Philippine company to supply electricity to the country's remote islands using microgrids. Kyushu Electric said it will invest and provide technical assistance to PowerSource Group though the amount of its investment in the Philippine project is not immediately known. At present, PowerSource provides 100 to 2,100 kilowatts of electricity generated by diesel to six sites on and around Palawan Island and one site near Cebu Island. The Philippine operator plans to expand supplies to more than 10 other sites.
Gov’t monitoring oil prices as new round of fuel excise taxes take effect | BusinessWorld Business World 6th Jan 2020
THE economic team is monitoring possible consequences of higher oil prices due to the Iran crisis, which broke at a time when the government is due to impose new fuel excise taxes, presenting a threat to inflation and growth assumptions. The crisis could also dent overseas employment, a major source of foreign exchange for the economy, with the air force placed on standby Sunday to mount evacuation flights to Iran and Iraq. The President’s spokesman, Salvador S. Panelo, said at a briefing that Socioeconomic Secretary Ernesto M. Pernia and the rest of the economic team are on alert for the possible impact of higher crude oil prices after the US launched an air stroke that killed a senior Iranian general in Iraq Friday.
Price cap to be prescribed on renewable energy certificates Manila Bulletin Business 4th Jan 2020
A price cap has to be instituted in the renewable energy certificates (RECs) that shall then be sold via the RE Market (REM) trading layer of the country’s Wholesale Electricity Spot Market. In a draft Circular of the Department of Energy (DOE), it has been set forth that the Philippine Electricity Market Corporation (PEMC) “shall develop the RE certificate price cap,” which has to be approved subsequently by the Energy Regulatory Commission. There had been no formula laid down yet on how PEMC will arrive at the price cap; and it was not also specified how the trading of RE certificates shall be carried out via the WESM.
Financial Services
SEC requires foreign firms to fully disclose ownership Philippine Star 3rd Jan 2020
The Securities and Exchange Commission (SEC) has issued a draft memorandum circular, which requires foreign corporations to be more transparent in their ownership structure. The memorandum circular covers revisions to the general information sheet of foreign corporations to include beneficial ownership information. The guidelines shall apply to all SEC-registered stock and non-stock foreign corporations, which are required to submit the GIS under existing rules and regulations.
Finastra selects Synopsys for security validation services IBS Intelligence 24th Jan 2020
Finastra has announced a partnership with Synopsys Inc in a bid to enable a security validation program for FusionFabric.cloud. It is also expected to enhance the security testing assessments for FusionFabric.cloud FusionStore’s applications. “By partnering with Synopsys on our application validation program, we’re creating a win-win solution for financial institutions and Fintech developers,” said Nir Valtman, head of product and data security at Finastra. According to the supplier, Synopsys will leverage its static application security testing, software composition analysis, penetration testing, and code reviews solution and its addition will assist in the validation of security standards of all applications onboarded to FusionFabric.cloud. Two companies, Allied Payment Network and Monotto have already completed the application validation program and have adopted Finastra’s platform. Recently, Singapore-based TONIK, a licensed digital-only bank in Southeast Asia, selected Finastra’s Fusion Essence in the cloud to power its end-to-end core banking capabilities
TONIK Selects Finastra's Core Banking Solution to Power Southeast Asia's First Pure-play Licensed Digital Bank Yahoo Finance 20th Jan 2020
On January 20, Finastra announced that TONIK, the first licensed digital-only bank in Southeast Asia, has chosen Finastra’s Fusion Essence in the cloud to power its end-to-end core banking capabilities. The relationship will assist TONIK’s launch with improved agility and scaling in retail deposit and customer loans services in the Philippines. The emerging digital banking sector requires modern, cloud-native technology that facilitates innovation while future-proofing investment. European neobanks such as revverbank and Gravity are already powered by Fusion Essence Cloud.
Philippines eases rules on REITs with lower public float DealStreetAsia 20th Jan 2020
Filipino authorities said on January 20 that Philippine real estate investment trust (REIT) companies will be allowed to maintain control of their firms and enjoy tax breaks under revised government rules, in an attempt to attract fresh capital and sustain property market growth. Though REITS have been an investment option in the Philippines since 2009, the market has not grown significantly due to a high public ownership requirement and transaction taxes. The Department of Finance said that the revised rules require that REITs sell only 33% of their companies to the public, in comparison to the previously mandated 67%. It also noted that transfer of assets from the property firm to the REIT company will now be free of value-added tax.
BSP Looks to Strengthen Financial Inclusion Push BusinessWorld 13th Jan 2020
BSP Governor Benjamin E. Diokno stated that the Bangko Sentral ng Pilipinas (BSP) will continue its to push for financial inclusion in 2020. Mr. Diokno also said that the central bank is aiming for improved regional standards through QR codes in coordination with its ASEAN counterparts. 2018 World bank data revealed that only 34.5% of Filipinos ages 15 and above own a formal bank account. Recent policy tools to increase financial inclusion include the National ID system, in which the free lone national ID will be all that is necessary to open a bank account. Mr. Diokno also pointed to the expansion of digital payments as a means of financial inclusion. The central bank said that financial players have until June 2020 to utilize a uniform QR code format for e-payments. It aims to have 20% of total transaction volumes performed digitally by 2020.
First pure-play digital bank in SEA receives bank licence approval to operate in the Philippines The Business Times 9th Jan 2020
TONIK Financial's subsidiary in the Philippines, TONIK Digital Bank, has received approval for a new banking licence from the Central Bank of the Philippines that will allow it to provide a full range of retail banking services, with a focus on retail deposits and consumer loans. TONIK Digital Bank is slated to become the first digital-only branchless bank licensed platform in the Philippines. In a statement, TONIK said that the Philippines is a US$140 billion retail deposit market and a US$100 unsecured consumer lending opportunity, with over 70% of the adult population unbanked.
Food & Agriculture
Farm sector eyes recovery this year philstar.com 1st Feb 2020
The local agriculture sector expects to post a two percent growth this year despite facing tougher conditions. Agriculture Secretary William Dar said the agency focuses on revitalizing the sector which is barely contributing to the national economy. This year’s target is a huge jump from the measly 0.7 percent growth recorded in 2019. “We are confident that we can attain a two percent growth this year, that in turn will help fuel a higher national economic growth target,” Dar said.
ASF sets foot on Mindanao | Manuel Cayon BusinessMirror 1st Feb 2020
DAVAO CITY – The African Swine Fever (ASF) made a public comeback and breached through Mindanao’s borders, hitting a swine farm in remote Davao Occidental. The Department of Agriculture confirmed on Friday the infection and the Office of Civil Defense said the contamination of swine farms in the province was the first case of ASF in the entire Mindanao. Don Marcelino town Mayor Michael Maruya posted on his Facebook account on Friday that he has ordered a “24/7 temporary lockdown of selling and buying pigs following the mortality of about 1,000 heads of swine in eight barangays, namely Linadasan, North Lamidan, South Lamidan, Calian, Mabuhay, Lawa, Nueva Villa and Baluntaya”. He said the swine deaths have been continuing but did not say when the infection started. The temporary lockdown was recommended by DA-XI and the Provincial Veterinarian Office as a measure to control the spread of the ASF and to ensure the safety of consumers of pork meat products in Don Marcelino.
Philippines confirms more ASF cases; 200,000 pigs culled philstar.com 31st Jan 2020
The Philippines has reported more African swine fever (ASF) outbreaks, with culled pigs nearing 200,000. In a follow-up report to the World Organization for Animal Health, also known as OIE, the Department of Agriculture (DA) said 130 new outbreaks and 2,891 cases have been recorded since August last year. In its report to the OIE in November, the DA said only 52,850 pigs were culled due to ASF.
Manila orders closure of meat processing plant infected by ASF from China inquirer.net 31st Jan 2020
A meat processing facility was ordered closed by the Manila City government on Wednesday as local officials intercepted a container-load of meat from China reportedly contaminated by the African swine fever (ASF). A closure order from the office of Manila Mayor Francisco “Isko Moreno” Domagoso read that Dr. Nicanor Santos, officer-in-charge of the Special Enforcement Squad of the Veterinary Inspection Board, conducted a routine inspection at the Ecosafe Agro-Products Manufacturing located at Manila Harbor Center at Road 10 in Vitas, Tondo which led to the discovery of the smuggled meat weighing around 25 tons.
DA orders crackdown on meat profiteers amid ‘undue’ hike in pork, chicken prices | Jasper Y. Arcalas BusinessMirror 31st Jan 2020
The Department of Agriculture (DA) has ordered a crackdown on traders and retailers who are profiteering on meat products, particularly pork and chicken, as prices of these commodities remained elevated despite declining farm-gate prices. The DA issued Department Order (DO) 3, Series of 2020, that ordered the enforcement of pertinent provisions of Republic Act 7581 or the Price Act to curb profiteering in the market. The DA explained that the law protects the consumers “by stabilizing the prices of basic necessities and prime commodities by prescribing measures against undue price increase during emergency and similar occasions.
DA offers interest free financing, incubation programs for startup agripreneurs to promote farming among Filipino youth inquirer.net 31st Jan 2020
The Department of Agriculture (DA) is offering a zero-interest financial program for those who plan to venture into agriculture and agribusiness. Agriculture Secretary William Dar said that the facility aims to promote agribusiness for startup farmers or those who wanted to level up their agri-business. The two programs, Young Agripreneurs Loan Program (YALP) and the Micro and Small Agribusiness Loan Program (MSALP), implemented through the Agricultural Credit Policy Council, has an initial budget of P2 billion.
In the Philippines, seaweed is giving former fishers a future Equal Times 31st Jan 2020
Many coastal communities in developing countries are using seaweed as a way to escape poverty thanks to the growing interest of international markets in this raw material. Seaweed thrives in warmer climates where a significant portion of the world’s developing countries are concentrated.
Solon bats for quick okay of DSWD rice subsidy bill | Jasper Y. Arcalas BusinessMirror 29th Jan 2020
A lawmaker on Tuesday called for the swift passage of a bill that would require the Department of Social Welfare and Development (DSWD) to buy palay from local planters for its rice subsidy program. Deputy House Speaker Luis Raymund Villafuerte said he has filed House Bill 5583 that requires the DSWD to buy unhusked rice from local farmers, and distribute this as subsidy, instead of cash, to Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries. Villafuerte said the DSWD should do this in partnership with the Department of Agriculture (DA) and National Food Authority (NFA) as price support to help farmers cope with the “detrimental effects” of the deregulation of the rice industry.
DA needs higher budget to hike milk output, revitalize dairy industry BusinessMirror 29th Jan 2020
The Department of Agriculture (DA) said on Tuesday it will seek more funds from Congress to bankroll the crafting of a new dairy road map that will detail strategies for improving local milk production. The DA made the pronouncement after its attached agency, the Philippine Carabao Center (PCC), was scolded by Sen. Cynthia A. Villar for its supposed failure to help improve the performance of Filipino students. The revitalized road map is the initial salvo in the campaign of the government to overhaul all its dairy-related programs. It will serve as the foundation to adequately meet the country’s annual per-capita milk consumption of 22 kilograms (kg).
DA pushes for hybrid rice technology in the Philippines The Manila Times 29th Jan 2020
The Department of Agriculture (DA) will continue advocating for the development of the hybrid rice technology in the country, according to its chief William Dar. “We will continue to provide all options for the Filipino farmers to select. But of course, the higher-end technology for the rice industry in this country is the use of the hybrid rice technology, which we will continuously advocate and promote and even enlarge the hectarage for hybrid rice technology,” Dar said in a speech during the thanksgiving party of SL Agritech Corp. on Tuesday night.
New hybrid rice program to focus on 100-hectare consolidated farm | BusinessWorld Business World 28th Jan 2020
THE Department of Agriculture (DA) is launching a pilot test program which subsidizes the process of consolidating farms for planting to hybrid rice, DA adviser for hybrid rice program Frisco M. Malabanan told reporters Tuesday. “Ang isa pong sisimulan ngayong taon na ito na hybrid rice program under the current administration — meron po tayong pilot cluster sa Region 3, Region 6, Region 11. But of course all other regions, sisimulan na rin po ’yung clustering approach. (One thing we’re starting this year is the hybrid rice program under the current administration. We have a pilot cluster in Region 3, Region 6, Region 11. But of course all other regions, we will begin the clustering approach).”
Philippines, US trade on pineapples, blueberries to be finalized philstar.com 27th Jan 2020
The Philippines and the US are expected to finalize this year the bilateral trade of blueberries and pineapples. The Department of Agriculture-Bureau of Plant Industry (DA-BPI) said the entry of US blueberries and the expanded entry of Philippine pineapples are in their final stages.
USDA Recruiting for a Trade Mission to the Philippines News Dakota 27th Jan 2020
The U.S. Department of Agriculture will lead a trade mission to the Philippines, designed to explore new business opportunities with the island nation. The trade mission will travel to Manila on April 20-23. They’re looking for agribusiness people who want to take part in the trip. Anyone interested should apply to the USDA’s Foreign Agricultural Service by February 6. Morgan Haas is the FAS counselor for agricultural affairs in Manila.
Farm output fails to hit gov’t target | BusinessWorld Business World 22nd Jan 2020
PHILIPPINE agriculture output grew less than a percent in 2019, failing to meet the government’s target as the African Swine Fever (ASF) outbreak dragged the livestock sector. The Philippine Statistics Authority (PSA) reported on Wednesday that agriculture output, which contributes about a tenth to gross domestic product (GDP) and a fourth of the country’s jobs, inched up by 0.4% in the fourth quarter, compared to the upward-revised year-ago growth at 1.9%, and the third quarter’s growth of 2.85%. The fourth quarter figure is way below the Agriculture department’s projection of between 2.5% to 3% growth. For the full-year, farm output rose by 0.70%, slightly higher than the 0.59% in 2018. However, this was lower than the 2.5-3.5% target range for farm output growth under the 2017-2022 Philippine Development Plan.
DA agencies tasked with raising onion, garlic competitiveness | BusinessWorld Business World 22nd Jan 2020
THE Department of Agriculture (DA) said it ordered more plans programs to boost the competitiveness of the Philippine onion and garlic crop. In a statement, the DA said its policy and planning office (PPO), the Bureau of Plant Industry (BPI) and the Agribusiness and Marketing Assistance Service (AMAS), have been ordered to draft and implement “appropriate medium- and long-term policies and programs to enhance the competitiveness of the country’s onion and garlic industry.” The instructions were contained in th DA’s Administrative Order no. 2, series of 2020. The PPO was assigned to determine the annual onion and garlic requirement based on five years of data. It will also plan for a support and incentive system for farmers to encourage them to shift to high-value crops.
In meat-mad Philippines, more people are turning vegan South China Morning Post 10th Jan 2020
Veganism is on the rise thanks to a growing awareness of the health benefits of a plant-based diet and the ease of sharing information on social media. Vegans in the Philippines, like anywhere else, know a great deal about the dietary benefits of their lifestyle choice. Many vegans are deeply aware of the environmental reasons for avoiding animal products, such as the air and water pollution farming animals causes.
Planters on SRA board seek ‘clarification’ on sugar import plan Business World 9th Jan 2020
SUGAR PLANTERS and millers on the Sugar Regulatory Administration (SRA) board said they were not consulted after the agency’s administrator signaled his willingness to allow food processors to import sugar should domestic prices prove uncompetitive. “(SRA) Administrator (Hermenegildo R.) Serafica must clarify to the sugar industry that such agreement in principle is his own personal position and not that of the industry that was not privy to such decisions,” the board’s Sugar Planters Representative Emilio Bernardino L. Yulo, and Millers Representative Roland B. Beltran said in a joint statement Thursday.
DA: Rice farmers to reap bounty of govt interventions starting 2020 BusinessMirror 8th Jan 2020
DAVAO CITY—Government would aim to raise local rice production than imports this year when local rice farmers begin to reap the benefits of government intervention last year, the Department of Agriculture (DA) said. The intervention came in the form of certified palay seeds which the DA-Philippine Rice Research Institute (PhilRice) distributed in October last year for the dry-season planting, the DA added. In a news statement that echoed the pronouncement of Agriculture Secretary William Dar when he spoke to reporters last week, the DA said it “targets to produce more palay [unmilled rice] and import less rice this year.”
Farmers ask DTI to help boost their attractiveness to banks Business World 6th Jan 2020
THE Philippine Chamber of Agriculture and Food, Inc. (PCAFI) is urging the trade department to assist farmers in developing business plans to make them more attractive loan clients for banks. “I would like (Trade Secretary Ramon M. Lopez) to help us set up a special team of financial advisors (for) farmers,” PCAFI President Danilo V. Fausto said in an interview before the association was due to conduct a general meeting Saturday. He said that assistance from the Department of Trade and Industry (DTI) should extend beyond micro-businesses and also cover larger agribusiness associations, noting that the United Broilers and Raisers Association (UBRA) poultry association is interested in putting up a pre-production plant.
DTI seeks sugar imports for food industry to stay competitive Business World 6th Jan 2020
TRADE Secretary Ramon M. Lopez said the sugar regulator needs to allow the food industry that sells to domestic markets to import sugar if local sugar prices cannot match import prices for the sweetener. “SRA (Sugar Regulatory Administration) assured us they’ll make available lower-priced sugar especially for exporters. Kailangan ma-include (They should include) competitive prices of sugar for food processors for the domestic market,” he told reporters after the Philippine Chamber of Agriculture and Food, Inc. general meeting on Saturday. Mr. Lopez said food processors need to be able to purchase domestic refined sugar at P1,900 per bag, instead of the P2,500 or P3,000 they sometimes pay.
Coco product maker Axelum expects P5.5-billion revenue Business World 6th Jan 2020
COCONUT product manufacturer Axelum Resources Corp. is estimating its 2019 revenues to hit about P5.5 billion and projecting its 2020 top line to grow double digits. The newly listed firm said its growth trajectory has remained intact for 2019 and is bullish in the year ahead as it sees further growth to be driven by its expansion and acquisition plans. “This year, because of the foreign exchange and because of the market problems, the gross revenue target will be something like maybe about P5.5 billion on a consolidated basis. Next year, we should be hitting at least P6 billion,” Axelum President and Chief Operating Officer Henry J. Raperoga said in a Dec. 18 interview with BusinessWorld.
DTI, SRA in talks over possible sugar imports Philstar 6th Jan 2020
While liberalization is on hold, the government is now looking at setting a benchmark price for local sugar which, if not met, would allow food processors to import the commodity at any given time. The Department of Trade and Industry (DTI) and the Sugar Regulatory Administration (SRA) are in talks about allowing domestic food processors and confectionaries to bring in imported sugar if local price cannot meet the P1,900 per bag level in the global market. Trade Secretary Ramon Lopez said SRA administrator Hermenegildo Serafica has committed that they would make available lower and competitively priced sugar for food processors. Currently, there is no sugar order that allows importation. The last batch of imports in August last year was 250,000 metric tons of either standard grade refined sugar or bottler’s grade refined sugar. Latest data from SRA showed refined sugar is currently priced at P2,200 per bag at the wholesale level.
Decline in rice prices continues Philstar 5th Jan 2020
Prices of Filipinos’ main staple continued to be on the downward trend with consumers saving more and farmers earning less following the influx of imported rice. Latest data from the Philippine Statistics Authority (PSA) showed consistent lower prices for more than nine months after the Philippines opened its rice industry to more private sector imports. In its regular update on palay, rice and corn prices, PSA said the average wholesale price of well-milled rice was P37.20 per kilogram as of the end of November. This represented a 12 percent drop from the P42.42 per kilo a year ago and 0.3 percent below on a weekly basis.Its average retail price also decreased by 9.5 percent to P41.58 per kilo.The wholesale price of regular-milled rice declined by 15 percent to P33.17 per kilo while the average retail price was P36.66 a kilo. While consumers are benefitting from the opening up of the market, local farmers are suffering from declining palay farm gate prices.
DA sees decline in ASF cases in Philippines philstar.com 3rd Jan 2020
While there has been a decline in the reported cases of African swine fever in the country, the outbreak declaration for the dreaded hog disease cannot be lifted yet. Agriculture Secretary William Dar stressed this in a press briefing Friday, noting ASF cases are still reported in Bulacan and Pampanga. According to the World Health Organization, an outbreak is the occurrence of one or more cases in an epidemiological unit. At least 62,000 pigs have been culled since the first ASF outbreak was confirmed in the country. Dar said the agency is continuously enforcing the “1-7-10” protocol and tightened airport and seaport inspections to control ASF from spreading in the country.
Health & Life Sciences
Dominguez sees temporary strain on exports, tourism philstar.com 5th Feb 2020
The spread of the 2019 novel coronavirus (nCoV) may create a temporary adverse impact on the local tourism industry as well as the export sector, according to the Department of Finance (DOF). “A significant impact on the economy will most likely be centered on the tourism sector. The travel and tourism industry around the globe is taking a hit as a result of the various levels of travel bans imposed by national governments and of voluntary decisions of airlines to cut flights to and from China,” DOF Secretary Carlos Dominguez said. Citing historical data, Dominguez said tourist arrivals to the Philippines during the SARS episode in 2003 dropped by 1.3 percent to 1.9 million from 1.93 million in the previous year. Tourist arrivals slightly decreased back in 2009, during the H1N1 outbreak.
Philippines confirms 3rd case of novel coronavirus Rappler 5th Feb 2020
The Department of Health (DOH) on Wednesday, February 5, reported the Philippines’ 3rd confirmed case of novel coronavirus (2019-nCoV). A 60-year-old woman from Wuhan, China, tested postive for 2019-nCoV. She traveled from Wuhan through Hong Kong and arrived in Cebu on January 20, and headed directly to Bohol. The woman consulted a private hospital after developing fever and colds, and was admitted to a hospital in Bohol. The DOH said it is now probing a total of 133 patients for 2019-nCoV.
CAB tells airlines to heed ban; CEB quarantines crew BusinessMirror 3rd Feb 2020
THE Civil Aeronautics Board (CAB) ordered all airlines operating to and from the Philippines to comply with a travel ban that it issued to help prevent the spread of the nCoV 2019 in the country, following the death of a Chinese national due to the virus on Sunday. The order reinstates the directive of President Duterte to bar entry of any person—except Filipinos and holders of permanent resident visas—coming from China and its Special Administrative Regions (SAR) or have been to the said areas in the past 14 days.
No entry now for all of China BusinessMirror 3rd Feb 2020
AS health authorities announced the death of the second case of 2019 novel coronavirus (2019-nCoV) in the country on Sunday, President Duterte ordered a ban on the entry of non-Filipino travelers coming from all of China, which is currently beset by an outbreak of the dreaded, new disease. Last week, the ban only covered the province of Hubei in China, where the 2019-nCoV is said to have originated. Although there have been calls for the Philippines to impose a lockdown for nearly a week, Duterte’s decision on Sunday—announced twice, first by trusted confidante Sen. Christopher Go and later by Executive Secretary Salvador Medialdea—caught a lot of people by surprise as Malacañang had kept saying it’s unwise to impose a total travel ban.
P13-billion fund can be tapped to deal with 2019-nCoV BusinessMirror 31st Jan 2020
Speaker Alan Peter Cayetano on Thursday said President Duterte can tap the P13-billion contingency fund in the 2020 national budget to prevent the spread of the novel coronavirus, 2019-nCoV, in the country. Cayetano said Congress could also augment the funds of the Department of Health (DOH) and other agencies involved in responding to the public health threat, as long as it is “part of the budget.” “Health is a priority, housing is a priority, education is a priority, the ‘Build, Build, Build’ program is a priority, so it is unavoidable that some may lack funds [in the process of implementation]…but so long as it is part of the budget, it can be augmented,” he said.
Virus outbreak to have short-term effect on tourism sector — Pernia | BusinessWorld Business World 30th Jan 2020
THE NOVEL CORONAVIRUS (2019-nCoV) outbreak is likely to have a short-term impact on the country’s tourism sector, according to economic managers. This as health officials on Thursday reported the first case of the new coronavirus in the Philippines. “I think it’s likely to just have a short-term impact because given the measures being done to minimize the (spread of the coronavirus)… It shouldn’t take long for that to have an effect on the economy,” Socioeconomic Planning Ernesto M. Pernia said when asked about the outbreak’s potential impact on tourism during a press conference on Thursday evening.
House leader proposes creation of PHL disease control and prevention center | Cai Ordinario BusinessMirror 29th Jan 2020
The chairman of the House Committee on Ways and Means is proposing to create the country’s own version of the United States Centers for Disease Control and Prevention (CDC) to monitor and address diseases like the 2019 novel coronavirus, or 2019-nCoV, from China. On Tuesday, Albay Rep. Joey Sarte Salceda told reporters the new center will combine the functions of the Disease Prevention and Control Bureau (DPCB) and Epidemiology Bureau of the Department of Health (DOH). The lawmaker said, however, that the new independent agency will be given additional powers and functions, as well as the necessary funding. “We are giving it more power and resources so that it will be independent to allow the DOH to focus on its regular public health functions and its maintenance of the entire health system,” Salceda said
Bill proposing medical education scholarship hurdles House appropriations panel Manila Bulletin News 25th Jan 2020
The House Committee on Appropriations has approved a bill seeking to establish a Medical Scholarship and Return Service Program for deserving students in the country. The House panel, chaired by Davao City Rep. Isidro Ungab, passed the appropriations provisions Medical Scholarship and Return Service (MSRS) Program Act. In his sponsorship speech, Calderon, vice chairperson of the House Committee on Appropriations, sought the “immediate passage” of the pro-poor measure, which seeks to address the shortage of medical practitioners in the country. “Recent data shows that the Philippines has a shortage of 15,000 doctors to be able to adequately meet the health needs of the Filipinos each year. According to the DOH (Department of Health) , the country is producing only 2,600 doctors a year, which results in a very low doctor to patient ratio,” he said.
House panel sends biotech bill to plenary for approval | Jovee Marie de la Cruz BusinessMirror 23rd Jan 2020
THE House Committee on Science and Technology has endorsed for plenary approval House Bill 3372, or the Modern Biotechnology Act. The House Committee on Science and Technology said on Tuesday the committee report of the bill is now being readied for another round of deliberations at the plenary. AAMBIS-OWA Party-list Rep. Sharon Garin, principal author of the bill, said the proposal seeks to combat poverty through the modernization of biotechnology in the Philippines. The bill seeks to expedite the regulatory decision-making process in biotechnology to help ensure the health and well-being of Filipinos, promote competitiveness, reduce hunger and poverty, and mitigate the effects of climate change.
In sixth district: Indigent patients to get cash aid philstar.com 21st Jan 2020
Indigent patients can now seek medical services in more government health facilities, as Sixth District Representative Emmarie "Lolypop" Ouano-Dizon has entered a Memorandum of Agreement with the Vicente Sotto Memorial Medical Center and Eversley Child and Sanitarium and General Hospital. This initiative of the congresswoman is in line with the Medical Assistance for Indigent Patients Program of the Department of Health that provides affordable, accessible and adequate health care system, most especially for the poor and indigent patients. In a statement, Ouano-Dizon said the program makes fund available for paying the hospital bills and laboratory fees of poor and indigent patients seeking medical services in these facilities. Ouano-Dizon will facilitate of the release in 2020 through the budget of the DOH, the amount of P7.5 million to VSMMC and P3.5 million to Eversley General Hospital.
DOH freezes prices of 218 drugs, masks philstar.com 16th Jan 2020
The Department of Health (DOH) has ordered a price freeze on 218 essential medicines and medical supplies as affected communities in Batangas and nearby provinces bear the brunt of Taal Volcano’s unrest. Duque said these medicines are basic necessities during calamities and disasters that put the health and lives of Filipinos at risk because of unfavorable conditions that cause or aggravate diseases, which can lead to epidemic and deaths. Under Republic Act 7581, the DOH is mandated to monitor and regulate medicine prices to ensure that consumers are protected against profiteering, hoarding and cartels in times of calamity. Under the memorandum, the price freeze will be in effect for the duration of Taal’s volcanic activity.
58th Malasakit Center launched in Cagayan philstar.com 16th Jan 2020
Sen. Christopher “Bong” Go attended the launching of the Malasakit Center in Cagayan Valley Medical Center (CVMC) in Tuguegarao City, Cagayan the other day to serve the residents, especially those in need of fast, affordable and reliable health care assistance in the province. The center is the 58th in the country and the first Malasakit Center to open in Cagayan Valley Region. The launch is a milestone for the Malasakit Center program as it ensures that all regions nationwide now have access to these one-stop shops. The Malasakit Center is a one-stop shop for indigent and poor patients seeking medical and financial assistance. With the passage of Republic Act 11463, all Department of Health (DOH)-run hospitals in the country will get their own Malasakit Center, he said. “This guarantees the continuity of the program well beyond the Duterte administration.”
Philippines ramps up healthcare budget for 2020 Health Care Asia Magazine 15th Jan 2020
The country’s government has allocated $3.2b to the health sector. The Philippines finalised its $81b (PHP4.1t) national budget in January 2020, a 12% increase from 2019’s budget, and allocated $3.2b (PHP164.7b) for the health sector. About half, $1.3b (PHP67.4b), went to the Philippine Health Insurance Corporation, whilst $1.1b (PHP59.6bn) went to hospital services, and the remaining $670m and (PHP34.2b) to public health services. The budget also allocated $150m (PHP7.5b) for the National Immunization Program, $810m (PHP41.1b) for the Health Facilities Operations Program, and $370m (PHP19.1b) for the purchase of drugs, medicines, and vaccines for distribution to various government health facilities.
DOH on alert over ‘mystery’ disease in China | Claudeth Mocon-Ciriaco BusinessMirror 6th Jan 2020
THE Department of Health (DOH) on Sunday ordered a strict check on incoming travelers at the airports and seaports amid reports of a mysterious disease in China, with symptoms similar to pneumonia but with fatal results in some cases. Health Secretary Francisco T. Duque III also assured the public that the Bureau of Quarantine (BOQ) is closely watching all those traveling to the country.
Rody open to reviewing Kaliwa dam deal Philippine Star 2nd Jan 2020
President Duterte is open to reviewing the China-funded Kaliwa Dam project deal to address concerns that it may contain provisions disadvantageous to the public.Presidential spokesman Salvador Panelo said Duterte does not tolerate one-sided or onerous provisions in government projects. “If somebody points out onerous provisions, the President would immediately look into it. In case (such provision) escapes the one who was supposed to check it, he himself would look into it. You can remove the onerous provisions and push through with the contract,” Panelo said at a press briefing yesterday.? The P12.2-billion Kaliwa Dam to be built in Quezon province is one of the government projects funded by Chinese loans. Some groups are opposed to the project, claiming it would cause floods, displace communities and damage the biodiversity of the Sierra Madre. ?
I will sign medicine price cap EO ‘twice over’ –Duterte Manila Bulletin News 13th Jan 2020
President Duterte assured the public that he will sign the draft Executive Order (EO) setting maximum drug retail prices (MDRP) submitted by the Department of Health (DOH) last month despite the strong opposition from pharmaceutical firms. In an interview with ABS-CBN, Duterte said he will definitely sign the draft EO once he sees it because a price cap on medicines would be good for the people. The DOH said last month that it has already submitted the draft EO to the Office of the President. The proposed order seeks to regulate prices of at least 120 drugs and medicines used to treat several diseases and health conditions. The health conditions include hypertension, diabetes, cardiovascular disease, chronic lung diseases, neonatal diseases or those affecting newborn babies, and major cancers. Earlier, the Pharmaceutical and Healthcare Association of the Philippines (PHAP) said that while the MDRP appears beneficial, similar measures were eventually withdrawn in other countries since they were found to be counterproductive.The PHAP said pharmacists in small and medium-sized drugstores in other countries were affected as their pharmacies were forced to close down, or were sold to bigger chains due to the measure.
Higher 2020 budget seen supporting healthcare market growth philstar.com 10th Jan 2020
The “significant” increase in the budget of the Department of Health will be a “positive” for the Philippines’ healthcare sector this year and should provide commercial opportunities for pharmaceutical firms and healthcare providers. President Rodrigo Duterte last Monday signed into law the P4.1-trillion national budget for 2020, his government’s largest spending plan to date. The social services sector accounts for the largest bulk of the budget at P1.495 trillion or 36.5% of the total. The funds would be used to support capital development programs in education, health and social protection. The Philippines' healthcare and pharmaceutical market is also expected to experience robust growth driven by the country's concerted effort to improve the health and well-being of its population.
ICT
House approves bill protecting women, children vs electronic violence Rappler 5th Feb 2020
Lawmakers gave their nod to the bill protecting women and children from all forms of electronic abuse. Voting 227-0-0, the House of Representatives approved on 3rd reading House Bill (HB) No. 5869 on Tuesday, February 4. The measure would expand the coverage of Republic Act (RA) No. 9262 or the Anti-Violence Against Women and Children Act and define electronic violence or information and communications technology (ICT)-related violence as any act that involves the "use or exploitation of data or any form of information and communications technology which causes or is likely to cause mental, emotional, or psychological distress or suffering to the woman and her children."
Web threats detected locally increase in the 4th qtr. Business World 5th Feb 2020
THE Philippines was seventh in the world in terms of the number of web threats detected during the fourth quarter of last year. Kaspersky said the Philippines climbed “six notches” from 13th spot in the same period of the previous year. Latest data from the Kaspersky Security Network (KSN) showed that 3,906,410 web threats were detected in the computers of Philippine-based Kaspersky users during the last quarter of 2019. As for the malware attacks from USBs, CDs, DVDs and other removable media, Mary Grace V. Sotayco, Kaspersky’s territory manager for the Philippines, said: “The Philippines is currently at 64th place globally with only 8,998,044 detections in Q4 of 2019 which is a significant drop from its 74th place with 11,757,863 detections in Q4 of 2018.”
Realme looking to help speed up 5G dev’t in the country Business World 5th Feb 2020
Chinese smartphone manufacturer Realme said it is collaborating with Philippine tech firms and network operators to expedite the development of the fifth-generation (5G) network technology in the country, as it is set to roll out its 5G smartphones in China this year. 5G technology will offer Filipinos better connectivity, Realme said, adding that the Philippines, with 72 million social media users and 26.59 million mobile telephone customers, already tops the world in terms of Internet users. The company said it will launch its 5G-enabled smartphone devices in China this year. The rollout will cover units in “all price segments” to allow “all future Realme devices to be equipped with a 5th generation mobile network.”
Facebook disaster maps helped Red Cross in Taal response philstar.com 5th Feb 2020
Social media company Facebook made its disaster maps available to the Philippine Red Cross (PRC) to support evacuation and relief operations for those affected by the recent eruption of Taal Volcano. Facebook said disaster maps provide almost real-time information on the location of people affected by calamities. It generates data based on movement of Facebook users, as well as where the population checks in as safe in the aftermath of a disaster. “Facebook Disaster Maps show us anonymized data on movements of people connected to Facebook and help us identify which areas have no internet connection or electricity,” said May Layugan, head of the PRC operations center.
Grab's selfie verification, audio, video recording suspended philstar.com 5th Feb 2020
Grab Philippines' selfie verification, in-vehicle audio recording and in-vehicle video recording systems have been suspended for deficiencies with the Data Privacy Act (DPA). The National Privacy Commission issued a cease and disease order after finding several deficiencies in the three personal data processing systems of the ride-hailing app. In a notice of deficiencies issued to Grab, the NPC said the firm did not sufficiently identify and assess the risks posed by selfie verification, audio and video recording systems to the rights of users. Grab's privacy notice and privacy policy also failed to inform the public that photo, audio and video files collected through the systems will be released to the police upon request in case of dispute, conflict or complaint. The ride-hailing app also failed to mention the legal basis in collecting photo, audio and video files from its users.
IBM proposes artificial intelligence rules to help eliminate bias Business World 22nd Jan 2020
IBM called for rules aimed at eliminating bias in artificial intelligence (AI) to ease concerns that the technology relies on data that bakes in past discriminatory practices and could harm women, minorities, the disabled, older Americans and others. As it seeks to define a growing debate in the US and Europe over how to regulate the burgeoning industry, IBM urged industry and governments to jointly develop standards to measure and combat potential discrimination. The Armonk, New York-based company issued policy proposals Tuesday ahead of a Wednesday panel on AI to be led by Chief Executive Officer Ginni Rometty on the sidelines of the World Economic Forum in Davos. The initiative is designed to find a consensus on rules that may be stricter than what industry alone might produce, but that are less stringent than what governments might impose on their own.
Court stops TWG cap on motorbike taxi riders BusinessMirror 7th Jan 2020
A LOCAL court has granted a temporary restraining order against a new policy that placed a cap on the number of motorcycle taxi bikers in the country, allowing Angkas to continue operating with a 27,000-strong rider fleet for the next three days. Acting Executive Judge Ofelia L. Calo of the Mandaluyong Regional Trial Court issued a 72-hour stay order against the amended motorcycle taxi pilot program that is headed by the Land Transportation Franchising and Regulatory Board (LTFRB).
Win urges regulators to prod telcos to comply with portability law soon | Butch Fernandez BusinessMirror 6th Jan 2020
REFLECTING the growing impatience of mobile company customers, Sen. Sherwin Gatchalian prodded telecommunication service providers to fast-track mobile number portability services now mandated by law, stressing they should not be made to wait for two more years. “Dont let mobile consumers wait until 2021 for mobile portability,” Gatchalian reminded telcos in a statement on Thursday, even as he prodded the National Telecommunications Commission (NTC) to ensure that the three mobile service providers will implement the mobile portability in accordance with the intent of the law.
PESONet committee eyes improvements to its service to boost digital transactions | BusinessWorld Business World 6th Jan 2020
THE PESONET Steering Committee is looking at ways to enhance its electronic fund transfer (ETF) service scheme in order to ease digital transactions. PESONet Steering Committee Head John Cary L. Ong said they are looking to enable PESONet to do multiple settlements in a day. Moreover, they also want to lessen check usage to support the push for more digital payments in the country. “Maybe in the beginning, we’ll start off with two or three times a day. But it’s not inconceivable that we would have settlements every hour,” he said in an interview with BusinessWorld in December.
DICT’s Rio quits, cites confidential fund anomaly The Philippine Star 3rd Feb 2020
Undersecretary Eliseo Rio of the Department of Information and Communications Technology (DICT) has tendered his resignation to President Duterte even as he questioned the disbursement of hundreds of millions of pesos in the three-year-old agency’s confidential funds.
DICT 'confident' in Dito Telecom rollout by July Rappler 29th Jan 2020
Department of Information and Communications Technology (DICT) Secretary Gregorio Honasan II is "confident" that 3rd major telco Dito Telecommunity can deliver on its promise by July 2020. In a statement, Honasan said he met with Dito Telecommunity to ask for updates on its initial commitments for the July deadline.
Infrastructure
Razon's buy-in of Manila Water won't stop contract review - DOJ Rappler 5th Feb 2020
Philippine Justice Secretary Menardo Guevarra said on Wednesday, February 5, that tycoon Enrique Razon Jr's buy-in of a 25% stake in Manila Water will have no effect on the ongoing contract review of water concessionaires. Guevarra said the Department of Justice (DOJ) will be ready by March to hold discussions with concessionaires Manila Water and Maynilad to begin the renegotiation stage. The contract review by the DOJ was prompted by President Duterte's rants against water concessionaires over an allegedly onerous water contract. Originally valid until 2022, the Metropolitan Waterworks and Sewerage System (MWSS) revoked the extension of the concession agreement with Maynilad and Manila Water.
Enrique Razon buys 25% stake in Duterte pet peeve Manila Water philstar.com 3rd Feb 2020
Ayala-led Manila Water Company Inc. announced Monday that ports and casino tycoon Enrique Razon acquired a 25-percent stake in the embattled utility company, which has been on the receiving end of President Rodrigo Duterte’s attacks and threats. The Razon-led infrastructure company Prime Metroline Holdings Inc. bought 820 million common shares of the water firm at a price of P13 apiece. Ayala Corp. remains a shareholder with a 38.6% stake. Duterte has berated both Manila Water and Maynilad Water Services Inc. after a Singapore-based arbitration panel ordered the Philippine government to indemnify the two water providers for losses they suffered from an unenforced rate hike.
Infra spending seen recovering | BusinessWorld Business World 30th Jan 2020
INFRASTRUCTURE spending would probably recover this year with a national budget already in place, after lagging in the 11 months through November, the Budget department said on Thursday. Infrastructure expenditures jumped 28.6% year-on-year to P80.9 billion in November, even as the 11-month tally fell 2.6% to P709.4 billion, data from the agency showed. “We see the economy firing on all cylinders this year with substantially higher government spending on infrastructure and social services, stronger domestic consumption responding to a benign inflation, and a revitalized agricultural sector,” Finance Secretary Carlos G. Dominguez III said in a speech at an event in Makati City yesterday.
3 Japan firms keen on Manila subway contract | BusinessWorld Business World 28th Jan 2020
AT LEAST THREE Japanese firms, including one of the maintenance providers of Metro Rail Transit Line 3 (MRT-3), signaled interest in bidding for the contract to provide train sets and electrical and mechanical (E&M) systems for the Metro Manila subway project. Department of Transportation (DoTr) Undersecretary for Railways Timothy John R. Batan said that as of Jan. 21, three Japanese firms, namely: Mitsui & Co. Ltd., Mitsubishi Corp., and Sumitomo Corp., have purchased bidding documents. “Mitsubishi has purchased bidding documents, Mitsui has purchased also, and third is Sumitomo,” Mr. Batan told BusinessWorld in a recent interview. Sumitomo is one of the maintenance service providers of MRT-3 along with Mitsubishi Heavy Industries Engineering, Ltd. and TES Philippines, Inc. The department published in December the invitation for Japanese firms to participate in the competitive bidding process for the procurement of E&M systems and track works for the Metro Manila Subway Project Phase 1.
DPWH reports 60% completion of P1.8-billion Mindoro Island Circumferential Road project | Lorenz S. Marasigan BusinessMirror 23rd Jan 2020
The Department of Public Works and Highways (DPWH) reported on Wednesday that the P1.8-billion Mindoro Island Circumferential Road project, which was started by the previous administration in 2014, is more than halfway complete. Public Works Regional Director Wilfredo Mallari said the project is now 60-percent finished, and that the completion of the said road is critical to improve access to coastal and mountainous areas of Mindoro. He added that the project will “also pave the way for the socioeconomic development projects and programs of the provinces of Oriental and Occidental Mindoro with a significant impact of alleviating poverty in the influence areas.”
DoTr clarifies airport tally refers to rehab, upgrade projects | BusinessWorld Business World 22nd Jan 2020
THE Department of Transportation (DoTr) said 120 airport projects, which include rehabilitation, expansion and upgrade works, have been completed by the current government. The DoTr provided this latest tally four days after an infographic released by the Presidential Communications Operations Office (PCOO) on the achievements of President Rodrigo R. Duterte included “64 airports.” There was no explanation in the infographic whether the 64 airports were built or upgraded during the first half of the President’s term. Cabinet Secretary Karlo Alexei B. Nograles clarified in an interview with ANC on Tuesday that the “64 airports” were not built during the President’s term. He added that what the PCOO’s infographic meant was “projects that were done with 64 airports all over the country.” “The latest is that 120 airport projects have been completed as of today,” Transportation Assistant Secretary Goddes Hope O. Libiran told BusinessWorld in a phone interview Wednesday.
Philippines builds infrastructure to spur economy Asia Times 12th Jan 2020
The Philippines’ economy is leaning heavily on infrastructure projects to deliver an economic boost in 2020. The central bank is keeping monetary conditions easy to help the country catch up with its Southeast Asian neighbors. The “Build, Build, Build” program has drastically increased infrastructure spending, which is expected to reach 7% of GDP by the end of President Rodrigo Duterte’s term. This compares favorably with only 2% of GDP before he was elected in 2016.The government has allocated 24% of its proposed 4.1 trillion peso (US$80 billion) 2020 budget to infrastructure – 12% higher than the previous year.
Philippines eyes more Japanese-funded infrastructure projects | BusinessWorld Business World 9th Jan 2020
THE Philippine government is eyeing more Japan-funded infrastructure projects this year, as the two countries eased the approval process of loan agreements in a bid to fast-track the implementation of infrastructure projects under the administration’s “Build, Build, Build” program. “As our ambitious ‘Build, Build, Build’ infrastructure program accelerates this year, we see more opportunities for financing and technical support from the Government of Japan,” Finance Secretary Carlos G. Dominguez III said during a bilateral meeting with Japanese Foreign Affairs Minister Toshimitsu Motegi on Thursday. A copy of Mr. Dominguez’s opening statement was provided to the media. During the meeting, Mr. Motegi said the Japanese government is set to mobilize $3 billion in funding through its recently launched Overseas Loan and Investment Initiative for the Association of Southeast Asian Nations (ASEAN) in the next three years.
Clark airport new terminal seen operational by July | BusinessWorld Business World 9th Jan 2020
THE NEW passenger terminal of Clark International Airport, which is expected to increase the airport’s overall capacity to 12.2 million passengers yearly, is set to be operational by July, the Department of Transportation (DoTr) said. Transportation Assistant Secretary for Communications Goddes Hope O. Libiran said in a phone message to BusinessWorld on Thursday that the new passenger terminal is set to be “operational” by July. In its annual report obtained by BusinessWorld on Wednesday, the DoTr said: “With the new terminal set for completion by July 2020, CRK’s (Clark International Airport) overall capacity will increase to 12.2 million passengers annually.”
D.O.J. to water firms: No reason to ‘play hardball’ | Joel R. San Juan BusinessMirror 9th Jan 2020
JUSTICE Secretary Menardo Guevarra told water concessionaires Manila Water Co. and Maynilad Water Services Inc. that there is no reason for them to reject the new contract that the government is drafting to replace the “onerous” provisions of their 1997 contracts that were extended to 2037. Guevarra assured the two water firms the new contracts will not be lopsided in favor of the government, and will address the needs of the consuming public. “The government will come up with a draft agreement that has no legally objectionable provisions, is fair and equitable, more transparent, and advantageous to the consuming public,” Guevarra said, a day after President Duterte issued a “take-it-or-leave-it” notice to the water firms, warning them their refusal of the new contracts being drafted could spur him to either let the military take over their operations or allow new players.
Construction sector loses as much as 35% of costs to corruption — economist | BusinessWorld Business World 8th Jan 2020
THE CONSTRUCTION industry spends as much as 35% of its costs to pay corrupt officials, higher than its profit, according to a think tank. Building companies allot 15% to 35% as “other costs of doing business,” economist Ronilo M. Balbieran told an industry conference on Wednesday, referring to corruption. “Ask any contractor what is your net profit rate, they will all say 8% to 10%, maximum 15%,” Mr. Balbieran, vice-president at REID Foundation, said. “And then they will all tell you ‘something is happening out there’ — and how much is that? 15% to 35%,” he added, alluding to corruption.
Sangley to be launched as general aviation hub in February | BusinessWorld Business World 8th Jan 2020
THE GOVERNMENT will inaugurate Sangley Airport in Cavite on Feb. 15, positioning it as the main hub for general aviation to decongest Metro Manila’s main gateway. In his speech at the conference on the Institutionalized Leveraging of Infrastructure Program for Airport Development (iLIPAD) held in New Clark City Wednesday, Transportation Secretary Arthur P. Tugade said that the “formal inauguration” of the Sangley Airport will be on Feb. 15, with President Rodrigo R. Duterte in attendance. Mr. Duterte ordered last year the immediate use of the facility for general aviation to reserve Ninoy Aquino International Airport (NAIA) for larger commercial aircraft.
Duterte signs record P4.1-T spending plan | BusinessWorld Business World 6th Jan 2020
PRESIDENT Rodrigo R. Duterte has signed the P4.1-trillion 2020 budget, his government’s largest spending plan to date, with expenditure focused on social services and infrastructure. On Monday, Mr. Duterte, legislators, and other government officials witnessed the ceremonial signing of the 2020 General Appropriations Act (GAA) in Malacañang. The President said that the budget approval will help the government achieve its aggressive economic growth target of 7.5% by 2022. If realized, that level of growth would represent a significant acceleration from 2020 growth expectations. The Asian Development Bank expects 2020 gross domestic product (GDP) growth of 6.2%. “Representing almost 20% of our projected GDP for 2020, this year’s P4.1-trillion budget will support our vision of a more peaceful and progressive Philippines — an upper-income bracket country that (will) cut the poverty rate to just 14% and achieve a 7.5% GDP growth by 2022,” he said in a speech. The 2020 GAA was ratified by the Senate and House of Representatives on Dec. 12. This year’s spending plan exceeds 2019’s P3.662-trillion budget and is the largest budget to date. The 2020 priorities are infrastructure development, human capital development, food security, and peace and national security, according to the Department of Budget and Management (DBM). Social services account for the largest part of the 2020 GAA with an allocation of P1.495 trillion or 36.5% of the total. The programs focus on human development, specifically education, health, and social protections. Some P172.4 billion will go to Universal Health Care (UHC), significantly lower than the P271 billion recommended by the Department of Health (DoH) to successfully implement UHC on its first year. The amount includes P71.4 billion allocated for the National Health Insurance Program. About P1.2 trillion will be used to fund economic services, representing 29.3% of the 2020 budget. Programs in this sector include the “Build, Build, Build” program via the 2020 budgets of the Department of Public Works and Highways (DPWH) worth P581.7 billion and the Department of Transportation (DoTr) worth P100.6 billion. Some P192.1 billion has been allocated to the Department of National Defense (DND) and P187.3 billion to the Philippine National Police (PNP), expanding their 2019 budgets of P136.5 billion and P173.24 billion respectively. About P70.6 billion will support the nascent Bangsamoro Autonomous Region in Muslim Mindanao (BARMM). The Judiciary will receive P41.2 billion.
Businesses prepare to deal with worker shortage | BusinessWorld Business World 6th Jan 2020
BUSINESS GROUPS are preparing to deal with the looming shortage of construction workers, as the government continues to implement several big-ticket infrastructure projects this year. Philippine Chamber of Commerce and Industry (PCCI) Chairwoman Ma. Alegria Sibal-Limjoco told reporters after a forum on Friday that businesses are preparing to deal with the lack of trained construction workers. “We have to prepare for it… marami ’yung sa construction ngayon (there are many construction projects now). They are not able to get ’yung trained (workers),” she said. “So what we are doing, we are preparing already para hindi magkaka-shortage (so there won’t be a shortage).”
NEDA submits 12 projects worth P557 B for Board OK Philippine Star 3rd Jan 2020
The Investment Coordination Committee-Cabinet Committee (ICC-CabCom) of the National Economic and Development Authority (NEDA) has recommended for board approval 12 infrastructure projects valued at more than P557.44 billion.These include projects of the Department of Transportation (DOTr), Department of Public Works and Highways (DPWH), as well as unsolicited proposals forwarded to the Civil Aviation Authority of the Philippines (CAAP). These projects were cleared for endorsement to the NEDA Board during the ICC-CabCom meeting dated Dec. 20, 2019.NEDA noted that the aggregate amount does not include the cost of the unsolicited project proposals. Projects to be implemented by the DOTr and DPWH are the following: MRT 4 Project, EDSA Greenways Project, Maritime Safety Enhancement Program, Bataan-Cavite Interlink Bridge (BCIB) Project, Cebu-Mactan Bridge (4th Bridge) and Coastal Road Construction Project, Davao City Coastal Bypass Road with Bucana Bridge Project, Capas-Botolan Road Project, and Panay-Guimaras-Negros (PGN) Island Bridges Project.
Legislation
POGOs to be taxed at 30% under new Senate bill | BusinessWorld Business World 2nd Feb 2020
A MEASURE proposing a 30% tax rate on the Philippine Offshore Gaming Operator (POGO) industry has been filed at the Senate. Senate President Pro Tempore Ralph G. Recto, in Senate Bill No. 1295,said the tax rate will apply to “the taxable income derived in the preceding taxable year from all sources within and without the Philippines.” The proposed law covers Philippine-based operators, and local gaming agents and service providers. Mr. Recto said the tax regime aims to address the confusion on whether POGOs should be taxed. In the bill’s explanatory note, he said the amendment to the national tax code is “necessary to remove any doubt and avoid the confusion whether or not POGOs are taxable in our jurisdiction.”
Neda lists priority bills 3 years before Duterte administration ends | Cai Ordinario BusinessMirror 23rd Jan 2020
The passage of National Land Use Act (NLUA) and Philippine Maritime Zones Act are included in the list of priority legislation in the last three years of the Duterte administration, according to the country’s socioeconomic planning agency. In a briefing on Monday, a National Economic and Development Authority (Neda) official said other bills include the amendment of the Consumer Act to include e-commerce, e-vehicles, and Local Population Development Act, among others. Neda Undersecretary for Policy and Planning Rosemarie G. Edillon said the time frame for passing these bills is this year to ensure they are passed before the campaign for the 2022 election season starts.
Duterte signs new taxes on alcohol, e-cigarettes into law Rappler 22nd Jan 2020
MANILA, Philippines – President Rodrigo Duterte signed into law a measure that would increase taxes on alcohol and e-cigarettes. With its enactment, sin taxes on alcohol will be increased by around P35 to P50, and by around P25 to P45 for e-cigarettes this year. Here are the rates based on the bicameral conference report: After 2020, here are the new tax rates for the said products until 2023: Alcohol (with a 6% indexation rate after 2023) Tobacco (with a 5% indexation rate after 2023) A copy of the signed law has yet to be made available to the media.
President signs 2019 edition of Salary Standardization Law | BusinessWorld Business World 9th Jan 2020
PRESIDENT Rodrigo R. Duterte signed into law the latest round of the Salary Standardization Law, which is expected to upgrade the pay of 1.4 million civil servants. The President signed the Salary Standardization Law of 2019 on Wednesday, the Palace said. The complete program grants salary increases for government employees in four tranches until 2023. “The compensation of all civilian personnel shall generally be competitive with those in the private sector doing comparable work in order to attract, retain, and motivate a corps of competent and dedicated civil servants,” according to the text of the Salary Standardization Law. The President’s Spokesman, Salvador S. Panelo, confirmed the law’s signing at a briefing Thursday, noting that Mr. Duterte was focused on improving work conditions for nurses and teachers.
House to fast-track bills on motorcycle taxis Philippine Star 3rd Jan 2020
The chairman of the House committee on transportation has vowed to expedite the consolidation or approval of 15 pieces of legislation on two-wheeled public transportation amid horrendous traffic in the country’s major cities. Rep. Edgar Mary Sarmiento of Samar stressed, however, that there must be an eventual phase-out of these two-wheeled public utility vehicles if and when the government has already put in place a safe, predictable and efficient mass transport system.“There are 15 House bills that are pending right now. Under our laws by virtue of Republic Act 4136 (Land Transportation Traffic Code), what has been allowed only are four-wheeled vehicles. The two wheels, they have been allowed by virtue of an executive order,” he said.
Manufacturing
Factory activity picks up in January Business World 5th Feb 2020
The Philippines’ manufacturing sector is off to a good start this year as factory activity in January improved at its strongest rate in a year, in contrast to the generally subdued performance across the Association of Southeast Asian Nations (ASEAN). IHS Markit reported its Philippines Manufacturing purchasing managers’ index (PMI) had a 52.1 reading in January, improving from the 51.7 in December and signalling “a moderate improvement in operating conditions at goods-producing firms.” IHS Markit noted the Philippine factories benefited from faster growth in output and new orders, even as suppliers were affected by the Taal Volcano eruption and worsening traffic conditions.
Manufacturing purchasing managers’ index of select ASEAN economies, December (2019) | BusinessWorld Business World 6th Jan 2020
FACTORY ACTIVITY in the country improved modestly in December, driven by growing demand and higher exports, but production slowed to a two-year low, dragged by supply shortages and traffic issues, IHS Markit’s latest survey showed. According to a report released on Thursday, the IHS Markit Philippines Manufacturing Purchasing Managers’ Index (PMI) reading inched up to 51.7 in December last year from 51.4 in November, its highest reading since October’s 52.1 and “in line with the average seen for the year (2019).” Region-wide, the country continued to have the second-highest reading for the fifth straight month among the seven Association of Southeast Asian Nations (ASEAN) members covered by the survey, behind Myanmar’s PMI of 52 and outpacing Vietnam’s 50.8. The Philippines continued to do better than the region’s average PMI of 49.8 last month — which improved from the 49.2 reading in November — indicating “consecutive deterioration in the health of the ASEAN manufacturing sector” for seven months in a row.
Market Regulation
PPA to let in ships from China philstar.com 5th Feb 2020
The Philippine Ports Authority (PPA) will not ban the entry of ships originating from China or from any of its special administrative regions so as not to paralyze the country’s supply chain, as the novel coronavirus (nCoV) menace persists and threatens to get worse. Instead, it has laid down rules to restrict the movement of ships’ crew and passengers as precaution against spreading the disease. “We are banning the disembarkation of the crew of any vessel which called in China or any of its SARs within the 14-day period prior to its arrival in any Philippine port,” he said, referring to China’s Special Administrative Regions.
Juul seeks clarification on e-cigarette importation philstar.com 4th Feb 2020
Juul Labs Philippines has sought the assistance of the Department of Finance (DOF) in clarifying President Duterte’s ban on the importation of electronic cigarettes, noting that the passage of new sin tax laws should have legitimized these products in the country. The DOF said the e-cigarette manufacturer encountered delays in the importation of its products as a result of Duterte’s ban on e-cigarettes, which was announced in November last year. Sought for his response, the finance chief said Juul Philippines should instead seek the help of the Executive Secretary to clear up the importation policy. Duterte in July last year signed RA 11346, which increased taxes on tobacco products and introduced a tax on e-cigarettes. However, the President, four months later, ordered a ban on electronic cigarettes and tobacco alternatives, after the Philippines confirmed its first case of vape-related illness.
‘Motorcycle taxis need to be legalized before anti-trust review’ philstar.com 3rd Feb 2020
The Philippine Competition Commission (PCC) said motorcycle taxis need to be legalized first before it can review the definition of a competitive market in which ride-hailing services operate, as Grab Philippines urges the commission to review the matter. “If motorcycles are legal as public utility vehicles, that is a first hurdle that must be met before we begin to consider a possible reconsideration of what a relevant market is,” PCC Commissioner Johannes Bernabe said. Ride-hailing app Grab called on the PCC to review the basis for defining the competitive market in which ride-hailing services operate, emphasizing that on-demand and platform-based motorcycle taxis are effectively competing with Grab. It added that the definition of a competitive market should be broadened to include other denominations and modes of transportation, be it on-demand, street hail, or by other means.
PCC firms up capability to fight cartels, competition law violators and saboteurs | Elijah Felice Rosales BusinessMirror 23rd Jan 2020
The Philippine Competition Commission (PCC) has primed up its capability to go after competition law violators that may very well include cartels. The country’s antitrust body and the Supreme Court on Tuesday launched the Rule on Administrative Search and Inspection under the competition law that would enable the PCC to carry out unannounced raids against business establishments suspected to be engaged in anticompetitive transactions, among others. PCC Chairman Arsenio M. Balisacan said the rules would boost the PCC’s power to carry out its mandate of going after economic saboteurs and cartels, as well as the protection of the rights of consumers and entities.
DA removes post-Fukushima requirements on Japanese produce | BusinessWorld Business World 9th Jan 2020
THE Department of Agriculture (DA) said it removed the radiation analysis requirement on selected Japanese commodities for import to the Philippines. In memorandum order no. 1, series of 2020, Agriculture Secretary William D. Dar said that the “certificate of radiation analysis and certificate of origin for the importation of Japanese commodities are no longer required.” The Bureau of Agriculture and Fisheries Standards (BAFS) had been ordered to conduct a food safety risk assessment of radionuclide in commodities which include fish, beef, apples, and pears from Japan. “The food safety risk assessment concludes that there is no significant food safety threat on fish, apple, pear, and beef imported from Japan,” it said.
Travel & Tourism
Tourism promotions body optimistic on new leadership philstar.com 5th Feb 2020
The Philippines Tourism Promotions Board (TPB) is optimistic of the country’s tourism marketing and promotions initiatives this year, as it is set to operate under a new leadership. The TPB welcomed Maria Anthonette Velasco-Allones as its new chief operating officer (COO), as she succeeds Marie Venus Tan, who recently announced her retirement. “Atty. Velasco-Allones will lead TPB’s continuing campaign to manage all domestic and international marketing and promotional efforts for Philippine tourism an Meetings, Incentives, Conference and Events (MICE) industries,” the TPB said. Allones is set to assume office as TPB COO on Feb. 10. The TPB is the marketing and promotions arm of the Department of Tourism (DOT).
538 Filipinos onboard quarantined Japanese cruise ship Rappler 5th Feb 2020
A luxury cruise ship quarantined near Yokohama, Japan, after its passengers were exposed to the novel coronavirus (2019-nCoV) has 538 Filipinos onboard, the Department of Foreign Affairs said on Wednesday, February 5. The Japanese government quarantined the Diamond Princess cruise ship after an 80-year-old passenger who departed from Hong Kong tested positive for 2019-nCoV. The ship, carrying some 3,700 passengers, was prevented from sailing and is anchored off a pier in the Kanagawa Prefecture capital.
’19 nCoV travel ban could spell P27-B loss for tourism sectors | Ma. Stella F. Arnaldo BusinessMirror 3rd Feb 2020
THE country’s tourism and travel industry are projected to lose some at least P27 billion with the temporary travel ban imposed by Malacañang on travelers from China and its special administrative territories, Hong Kong and China. The ban, announced on Sunday before the Department of Health (DOH) reported its first death from the novel coronavirus (nCoV), does not cover, however, Filipino citizens and holders of Permanent Resident Visas issued by the Philippine government. The Tourism Congress of the Philippines, which had been urging for a complete travel ban on China since last week, welcomed the move of Malacañang. In a news statement on Sunday, the group said, “While we realize that this will affect the tourism industry, we also acknowledge that our country’s safety and health takes precedence over business at this time.”
Ilocos Sur cruise port now in use; formal inauguration this month | BusinessWorld Business World 9th Jan 2020
TRANSPORTATION Secretary Arthur P. Tugade said the newly-developed Salomague Cruise Port in Cabugao, Ilocos Sur, which serves as an alternate cruise port for Region I, will be formally launched this month. “Marami, ‘yung Salomague, ginagamit na ngayon pero i-inaugurate na namin (A lot, including the Salomague Cruise Port. The cruise port is already in use, but we will now inaugurate it),” Mr. Tugade told BusinessWorld on Wednesday when asked about ports to be launched in January. In a social media post in December, the Department of Transportation (DoTr) said that the Salomague Cruise Port will serve as an “alternative cruise port in Region I” as it is located near attractions and beaches in the Ilocos provinces.
Direct flights to regional airports driving tourist arrival targets | BusinessWorld Business World 8th Jan 2020
THE Department of Tourism (DoT) said its target of 9.2 million international visitors this year is driven by more airport development projects which allow tourists to bypass Manila’s congested airport. “According to the National Tourism Development Plan, it’s at 9.2 million for this year,” Tourism Secretary Bernadette Romulo-Puyat told reporters on Wednesday on the sidelines of the conference on the Institutionalized Leveraging of Infrastructure Program for Airport Development (iLIPAD) held in New Clark City. The 2019 tourist arrival target was set at 8.2 million. “We are happy that there are more airports opening: Clark, according to (Transportation) Secretary (Arthur P.) Tugade, will be at the latest July, Legazpi, of course that will help. And of course, when we have the approval of the consortium for the expansion of NAIA (Ninoy Aquino International Airports).”
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