Philippines Update: March 10, 2020

CITIRA nears bicameral discussions amid concerns over effects, timing

The Philippine Senate is currently tackling at second reading the Corporate Income Tax and Incentives Rationalization Act (CITIRA) which amends the National Internal Revenue Code. The CITIRA lowers the corporate income tax (CIT) rate, reorients fiscal incentives toward strategic growth industries, and makes incentives available to investors making net positive contributions.

Senate Bill 1357, principally authored by Senator Pia Cayetano, reduces the CIT by 1% every year, from the current 30% to 20% by 2029, beginning January 1, 2020. This will make the rate of CIT at par with other countries in Southeast Asia whose rates are at the 17%-25% range. However, to anticipate possible negative effects of the tax amendments, the President may suspend the reduction by 2025 should the projected deficit target as a percentage of the Gross Domestic Product exceed the programmed deficit as determined by the Development Budget Coordination Committee.

To make up for the decrease in CIT, the Senate CITIRA Bill will enlarge the tax base. A feature of the CITIRA is the repeal of the preferential rate of 10% Regional Operating Headquarters (ROHQs). They will be subjected to pay the regular CIT two years after the law becomes effective. By then, the CIT will be at 27%. Meanwhile, the final tax rates on interest income derived by resident foreign corporation from a depository bank under the expanded foreign currency deposit system will be increased from 7.5% to 15%. Likewise, capital gains tax (CGT) on the unlisted shares of foreign corporations will be increased to 15% from the current 5% or 10% CGT rate on net capital gains realized during the taxable year from dispositions.

The Bill also places a sunset provision on the income tax holiday scheme to certain qualifying businesses such as those registered under the Strategic Investment Priorities Plan (SIPP) overseen by investment promotion agencies such as the Philippine Economic Zone Authority (PEZA) and the Board of Investments (BOI). They shall be granted a remaining period of between 2 to 5 years on the existing rate of 5% depending on the location and type of industry, but there shall be a longer transition period of seven years for 100% exporters, or those who employ 10,000 workers, or those belonging to “footloose” sectors. After this, a special CIT of 8% in 2020; 9% in 2021; and 10% in 2022 will be paid based on gross income earned (GIE), in lieu of all national and local taxes. They will also have the option of paying the regular CIT subject to enhanced deductions (e.g., 50% additional deduction on labor and power expenses during the taxable year, or up to 100% additional deduction on training and research & development expenses, among others). The period for the tax incentive options can be extended up to 12 years.

Senator Cayetano noted that the Senate version will address the request for a smoother transition period and pointed out that currently, it contains a measure which allows the President to grant incentives for a longer period of up to 40 years for “highly desirable” projects. However, Senate President Pro Tempore Ralph Recto said that 1% yearly tax cuts every year for 10 years were too slow and that he would prefer a one-time, big time reduction. He also said he might introduce a separate fiscal regime for exporters in the manufacturing and service industries stating: “I don’t think we should impose too much taxes on exporters and the business process outsourcing industry.” He also indicated he might propose separate tax rates for micro, small, medium, and large enterprises.

The American, Australian-New Zealand, Canadian, European, Japanese, and Korean chambers representing the JFC, the Philippine Association of Multinational Companies Regional Headquarters Inc., as well as IBPAP and SEIPI submitted a position paper to the Senate recommending that instead of the slow 1% reduction per year, the CIT should be reduced to 25% on the first year of CITIRA and then trimmed by 1% per year to reach 20% by 2025. They also recommend that the SIPP include projects provided by Global Corporate Centers (GCC) and those that will qualify as GCCs shall be taxed at 10% for up to four years from the effectivity of CITIRA. They opine that industries exporting 100% of their goods and services, or those which employ at least 10,000 Filipinos directly engaged in the production of registered projects be entitled to a longer transition period of ten years. Further, the groups stated that these enterprises should be able to register expansion activities or renew their incentives under CITIRA.

PEZA Director General Charito B. Plaza appealed to Congress to defer the passage of CITIRA as any change in the tax structure will add to the injury of exporters already suffering from the COVID-19 outbreak. Senate President Vicente C. Sotto III is open to delaying action on economic bills to allow legislators to concentrate on addressing the virus threat. However, Philippine President Duterte certified CITIRA as an urgent bill through a letter to the Senate President on March 9. This allows the Senate to pass the bill on 2nd and 3rd readings on the same day. It is anticipated that should the Senate finish with the third reading of CITIRA, both houses of Congress will form a bicameral committee to discuss amendments further. Representative Joey Sarte Salceda of the Ways and Means Committee of the House stated that while the House will work with Senate to achieve a bill that is fiscally acceptable, his committee will oppose incentives granted in perpetuity. Secretary Lopez stated however that the Senate version is a “well-balanced approach” to corporate tax reforms.

In September 2019, the House of Representatives (HREP) approved House Bill No. 4157, its version of the CITIRA. The reduction of CIT from 30% to 20% follows the same 10-year period. Under the House Bill, registered entities enjoying the current income tax holiday of four to six years will be allowed to continue receiving this incentive for a period of five to ten years depending on location. Several groups including the Philippine Ecozones Association, Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI), Information Technology and Business Process Association of the Philippines (IBPAP), Confederation of Wearable Exporters of the Philippines, and the Joint Foreign Chambers (JFC) raised concerns over the House version of the CITIRA with the removal of incentives given these shorter transition periods. The JFC warned of capital flight which would put job losses at over 700,000 once the bill is passed. Trade Secretary Ramon M. Lopez earlier stated that he supports a longer five to seven-year transition period.

Philippines Executive Order caps retail and wholesale prices of more than 100 medicines

On February 17, 2020, Philippine President Rodrigo Duterte signed Executive Order No. 104 titled "Improving Access to Healthcare through the Regulation of Prices in the Retail of Drugs and Medicines” to impose price regulation through a maximum retail price (MRP), maximum wholesale price (MWP) on certain drugs and medicines.

It is expected that this measure will reduce the price of around 133 drug formulas by around 56% from their prevailing market prices. Its annex includes the following medicines: anti-hypertensives, antidiabetic drugs, anti-neoplastic/anti-cancer drugs, immunosuppressants, analgesics, anticoagulant, anti-agina, antiemetics, antidepressants, an iron chelating agent, a growth hormone inhibitor, an antiviral drug, a fibrinolytic, a mucolytic, a parenteral nutritional product, a phosphate binder, a surfactant, and an hematopoietic agent. Also included are psoriasis, seborrhea and ichthyosis preparations, anti-asthmatic and chronic obstructive pulmonary disease preparations, and agents affecting bone metabolism.

The MRP is imposed on all public and private retail outlets including drugstores, hospitals and hospital pharmacies, health maintenance organizations, convenience stores, and supermarkets and the like. The MWP is imposed on all manufacturers, wholesalers, traders, distributors, and the like. To prevent abusive private sales, the measure also provides that no public or private entity shall be allowed to demand payment higher than the MRP or MWP. A violation of the Executive Order shall be subject to the sanctions imposed by the Universally Accessible Cheaper and Quality Medicines Act of 2008 which include reprimand, payment of fines, suspension or revocation of license, or imprisonment, as the case may be.

The signing of the EO followed the Department of Health’s 2019 proposed price caps to improve access to affordable medicines which address leading diseases and conditions such as hypertension, cardiovascular disease (CVD), and cancers, among others. The Pharmaceutical Healthcare Association of the Philippines (PHAP) vowed to abide by the new measure but earlier cautioned that the MRP is “unnecessary” and has the unintended consequence of disincentivizing innovation. PHAP president and managing director, Dr. Beaver Tamesis, commented that price control mechanism would make pharma companies deprioritize the Philippines and this will, in turn, deprive Filipinos of access to innovator drugs for critical illnesses at affordable prices and discourage investors. He also emphasized that prices of drugs before the Executive Order are comparable with that of other Asian nations and that countries like China and India have stepped back from price controls. PHAP Executive Director Teodoro Padilla also warned that companies may scale down operations or withdraw medicines from the market if there is a price cap because most of the medicines are protected by patent. He comments that companies might not be able to recoup the cost of developing, producing, and distributing the medicine because of the price cap. Instead of price control, PHAP suggested that the DOH should expand its proven medical access program through negotiated price procurement and tender or bulk buying to be able to bring down prices of medicines and ensure predictability of business.

Philippines moves to terminate the U.S.-Philippines Visiting Forces Agreement

On February 11, the Philippines sent the official notice of termination ending the U.S.-Philippines Visiting Forces Agreement (VFA). The VFA termination takes legal effect in 180 days unless parties agree otherwise. The VFA reaffirms obligations under the 1951 Mutual Defense Treaty and sets rules on US personnel visiting the Philippines including rules on entry, temporary stay, and departure as well as the exercise of criminal jurisdiction. The termination notice came after President Duterte’s order banning members of the Cabinet from traveling to the USA. The U.S. travel ban was first reported on January 29. Philippine and international press point out that President Duterte ordered the U.S. travel ban after key ally Senator “Bato” dela Rosa, former national police chief over the administration’s drug war, confirmed that his U.S. visa was canceled. It has been reported that Duterte’s decision to terminate the VFA was not solely based on Dela Rosa's canceled visa, but was also anchored on the US Senate's adoption of a resolution that seeks Global Magnitsky Act sanctions against Philippine officials involved in extrajudicial killings and the detention of Senator Leila de Lima.

On February 21, local group Makati Business Club (MBC) which counts the largest Philippine conglomerates among its members issued a statement expressing belief that strong ties with the U.S. are important for both economic and security reasons. The business group was concerned that the notice of termination may affect other security arrangements. In 2016, MBC issued a statement supporting President Duterte’s revitalizing Philippines-China relations and pointed that “as we strengthen ties with one of our neighbors, this should be in tandem with continuing to nurture our partnership with existing strategic allies and friends. In particular, our relationship with the United States, particularly on the economic front, should remain solid and should also be further expanded.”

Reminder Call for Input: Philippines Foreign Investment Act (FIA) Amendments

The Council has drafted a letter to the Chair of the Philippines Senate Economic Affairs Committee regarding Senate Committee Report No. 20 (SBN 1156), which amends the Foreign Investment Act. The letter raises concerns about a potentially far-reaching provision that would allow for foreign online businesses to be regulated as domestic market enterprises under the Foreign Investment Act as well as under “other relevant tax, corporate and other laws.” The Council is requesting that members send in any input on our draft letter by March 12. For a copy of the draft letter, please contact Lilibeth Almonte-Arbez at lalmonte@usasean.org, Jamie Lim at jlim@usasean.org, or Natalie Tantisirirat at ntantisirirat@usasean.org.

Call for Input: Philippines Senate Bill on CITIRA

Given legislative developments in the Philippine Senate on the Corporate Income Tax and Incentives Rationalization Act or CITIRA (see update above), the Council is opening a call for input and requests members to share comments and positions on the bill. If the bill is not voted on this week before Congress closes March 14, it will be taken up again when Congress resumes on May 4. This is an opportunity to make a positive contribution in shaping this legislation, and your inputs are of great value. Members may find the text of the Senate Bill here and the House Bill here. Should members wish to submit comments or reiterate policy positions through a Counicl submission, members are requested to email Elizabeth Magsaysay-Crébassa at em.crebassa@usasean.org or Lilibeth Almonte-Arbez at lalmonte@usasean.org with any comments or questions by March 27.

FTAs raise stakes for exportable farm goods Business World 10th Feb 2020
Former trade negotiator for agriculture Segfredo R. Serrano is calling for a shift to high-value crop exports and data-based negotiations as the Philippines enters into more trade agreements. Mr. Serrano, a retired civil servant with the Department of Agriculture (DA), represented the Philippine Task Force World Trade Organization Agriculture Renegotiations (TF-WAR). The Philippines this year is taking on new free trade agreements (FTAs), as it looks to sign the Regional Comprehensive Economic Partnership (RCEP) among Southeast Asian countries and their major trade partners. The Philippines is also in negotiations with South Korea, and may begin talks for a trade agreement with the United States. As the Philippines moves forward with RCEP, he said that the country must boost its ability to supply exports. Mr. Serrano believes the DA must strengthen its trade negotiating position with data-based decision-making and industry consultations. A data-driven value chain analysis would give insights into which agricultural sectors and areas would be best for export, he said.

DoT, Boracay hotel sector to plan room discounts for domestic market as Chinese tourists drop Business World 10th Feb 2020
The Department of Tourism-Western Visayas (DoT-6) office will meet with the region’s industry stakeholders, starting in Boracay, to map out marketing strategies and possible room rate discounts to spur domestic travel. They will start the discussions this week to cushion the impact of the drop in Chinese tourists amid the travel ban for flights from China, Hong Kong and Macau. Discounted room rates are better than empty rooms that may result to loss of employment, loss of livelihood, to hundreds of thousands in the region dependent on tourism. Around 50% of the 434,175 foreigners who visited Boracay in 2019 were Chinese.

DoTr to keep Mindanao railway single track, keeps options open Business World 6th Feb 2020
The Department of Transportation (DoTr) said it will proceed with a single-track and non-electrified system configuration of the Mindanao Railway Project, overruling appeals from the Davao Regional Development Council to adopt a two-track, electric configuration. Single-track means trains have to be directed into sidings to give way to a train coming from the opposite direction. Single-track, however, is faster to build, a likely consideration for a government eager to claim at least partially-completed projects by the time it steps down in 2022. The Davao Regional Development Council has sent a letter to the Transportation department appealing for a reversion to a two-track electric configuration.

NEDA sees job losses up to 60,000 due to virus Business World 10th Mar 2020
The National Economic and Development Authority (NEDA) estimated up to 60,000 jobs in the tourism and manufacturing sectors may be lost if the coronavirus disease 2019 (COVID-19) outbreak persists until June. NEDA Undersecretary Rosemarie G. Edillon told the Senate economic affairs committee hearing on the COVID-19 impact on the economy that the COVID-19 outbreak may cut gross domestic product (GDP) growth by 0.3-1% if it continues until end-2020. The NEDA said the tourism industry is facing a possible 1.42-million reduction in foreign tourist arrivals this year, as two of its biggest sources of tourists — China and South Korea — try to contain the spread of the virus.

Govt may use POGO revenues to fight virus–Panelo  BusinessMirror 9th Mar 2020
Malacañang said over the weekend that is looking into the possibility of using the taxes collected from Philippine Offshore Gaming Operators (POGO) to combat the effects of the spread of the coronavirus disease 2019 (COVID-19). Presidential spokesman and Chief Presidential Legal Counsel Salvador S. Panelo said in a radio interview that the money from POGOs could also be used to increase the salary of public school teachers and nurses. “The money, which we collect from whatever sources, is for the government and it can be used for any undertaking in governance,” said Panelo.

Business groups push for improvement in CITIRA philstar.com 9th Mar 2020
Business groups Joint Foreign Chambers of the Philippines (JFC), the Information Technology and Business Process Association of the Philippines (IBPAP) and Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI) are pushing for improvements in the Senate version of the Corporate Income Tax and Incentives Reform Act (CITIRA) to address concerns which include the slow schedule of reduction of CIT, short transition period as well as removal of the powers and functions of the Philippine Economic Zone Authority (PEZA). The groups said that while Senate Bill 1357 provides a better incentive package than the House of Representatives’ CITIRA version, they are hopeful their concerns on the Senate version of the bill could be addressed. Among the concerns raised by the groups is the slow reduction in CIT as the bill would reduce the CIT rate by one percentage point every year from 30 percent to 20 percent by 2029. As the Philippines’ high CIT rate has been ineffective in attracting investments compared to other Southeast Asian countries, the groups are proposing the CIT rate be reduced to 25 percent in the first year and trimmed by one percentage point per year to reach 20 percent by 2025. 

House OK’s bill hiking road user’s tax Business World 5th Mar 2020
The House of Representatives has approved on second reading a bill that will increase the road user’s tax and expand funding for the government modernization program for public utility vehicles. Under the measure, there will be a 30% annual rate increase for passenger cars, both public and private, for three years. The rates for all other vehicles namely utility vehicles, sport utility vehicles, buses, trucks and trailers will be based on a per kilogram of gross vehicle weight: 1.40/kilo of GVW in the first year, 2.50/kilo in the second year, 3.40/kilo in the third year. The measure also seeks to cut the road user’s tax on vehicles for hire to 50% of the tax for private and government vehicles. An 5% annual increase will be imposed by Jan. 1, 2023 through revenue regulations issued by the Finance secretary to ensure inflation “does not erode the value of revenues.

Pass money-laundering amendments now–AMLC BusinessMirror 5th Mar 2020
THE Anti-Money Laundering Council (AMLC) on Wednesday called on Congress to immediately pass the bill amending the Anti-Money Laundering Act (AMLA) to  address strategic deficiencies in the country’s law. At the hearing of the House Committee on Banks and Financial Intermediaries, AMLC Executive Director Atty. Mel Georgie Racela warned that failure to amend the weak areas in the AMLA may place the Philippines in the grey-list jurisdiction and even face blacklisting by the Financial Action Task Force (FATF). The FATF publicly identifies jurisdiction that have strategic anti-money laundering and counterterrorism financing (AML/CFT) defiencies. According to AMLC, deficiencies and legislative amendments should include tax crimes and proliferation financing under AMLA.

‘PHL could earn $650 million from 5G’ BusinessMirror 5th Mar 2020
Unconstrained Filipino telco service operators may rake in some $650 million in additional revenues by 2025 by offering 5G to both consumers and enterprises, a study commissioned by multinational technology firm Cisco revealed. In the study titled “5G in Asean: Reigniting Growth in Enterprise and Consumer Markets,” the Philippines ranked fourth out of six nations in Southeast Asia to harness the potential of 5G, a new wave of Internet connectivity that is seen to enable various practical use cases because of its speed, lower latency, reliability, and security. The study showed that in an ideal setup, the total value at stake for the Philippines is between $500 million and $650 million in 2025. This assumes that factors relating to 5G’s unconstrained success are present.

Senators adopt resolution extending expiring franchises Business World 5th Mar 2020
Senators on Wednesday adopted a resolution extending the validity of the franchises that will expire this year in a move that could result in the continued operation of ABS-CBN Corp., Sky Cable Corp. and AMCARA Broadcasting Network, Inc. The chamber consolidated two concurrent resolutions and two simple resolution, authored separately by a total of 17 Senators. It will allow the National Telecommunications Commission (NTC) to issue a provisional authority for the companies to continue operating while their franchise renewal is pending in Congress.

Virus cuts BOC’s take from imports in February BusinessMirror 4th Mar 2020
THE Bureau of Customs (BOC) lost some P2.7 billion in tariff collection in February, as the outbreak of the coronavirus disease 2019 (COVID-19) caused imports from China alone to drop by an annualized rate of 34.67 percent in terms of volume. The latest data from the BOC showed that revenues from shipments from China fell by 27.41 percent to P7.17 billion in February, from last year’s P9.88 billion. Volume was also lower at 936.25 million kilograms, from last year’s 1.43 billion kg. The decline in revenues from China’s shipments to the Philippines pulled down the BOC’s total collection from imports last month. The bureau collected a total of P41.67 billion, 2.58 percent lower than the 2019 record of P42.77 billion. Overall import volume, according to BOC data, also slid by 6.67 percent to 8.15 billion kg, from last year’s 8.73 billion kg.

House vows to pass retail liberalization amendments before session break BusinessMirror 4th Mar 2020
THE House of Representatives will pass the amendments to the Retail Trade Liberalization Act before Congress goes on recess next week to give senators enough time to deliberate on their version of the bill, a House leader vowed on Tuesday. Valenzuela City Rep. Weslie T. Gatchalian committed the chamber’s passage of House Bill (HB) 59 before Congress takes a break next week. HB 59, authored by Tarlac Rep. Victor A. Yap, will trim the required capital for foreign retailers to operate in the Philippines to $200,000, from $2.5 million at present. Whereas under the House bill the capital requirement is $200,000, the Senate version has it at $500,000. The middle ground could be the Department of Trade and Industry’s (DTI) proposal of $300,000, although that has yet to be considered by any chamber.

Palace to oversee red tape reduction efforts Business World 4th Mar 2020
THE Anti-Red Tape Authority (ARTA) said the Office of the Executive Secretary (OES) will lead a program to reduce process times for government approvals by more than half. ARTA’s streamlining program, known as the National Effort for the Harmonization of Efficient Measures of Inter-related Agencies (NEHEMIA), hopes to streamline application waiting times, documentary submissions, and fees for approvals sought by “sectors of economic and social significance” by 52% over 52 weeks. The announcement of the OES as lead coordinating agency for NEHEMIA during its launch Wednesday indicates the availability of a direct line to the President to resolve any snags.

Terrorism or dissent? New Philippine law is open to interpretation South China Morning Post 3rd Mar 2020
A tough new anti-terror law set to be passed by legislators in the Philippines has raised concerns it could be used by the administration of President Rodrigo Duterte to jail critics and snoop on citizens over the internet. The bill, which was approved 19-2 by the country’s Senate on Wednesday, effectively repeals 2007’s Human Security Act, replacing it with a “strong legal backbone to support the country’s criminal justice response to terrorism” that provides “law enforcers the much-needed tools to protect the people”, the upper chamber said in a press release. But the powers granted to law enforcement would be so wide-ranging that even “liking” the social media posts of known leftists such as exiled founder of the Communist Party of the Philippines Jose Maria Sison could open up people to surveillance by the authorities, according to human rights lawyer and constitutional law professor Antonio La Viña.

D.I.C.T.’S One-Stop Shop boosts government’s Ease of Doing Business goal BusinessMirror 3rd Mar 2020
The Department of Information and Communications Technology (DICT) said that its has aided the government’s push for the implementation of the Ease of Doing Business Act through the deployment of one-stop shop in Metro Manila. The first National Business One Stop Shop (NBOSS), cuts down the process of business registration from 33 days to seven-and-a-half days by reducing the steps from 13 to nine.

Money laundering eyed as travelers bring in forex Business World 2nd Mar 2020
The Bureau of Customs (BoC) said it has seen more air travelers importing foreign currency beginning in the third quarter of 2019, with most of the cases involving Chinese nationals. The bureau has stepped up its monitoring of passengers bringing in foreign currency beyond the $10,000 limit. Separately, the National Intelligence Coordinating Agency (NICA) said it is planning to propose to the Office of the President an executive order (EO) that will create a national task force to address possible money laundering through couriers posing as travelers. Passengers carrying foreign currencies above the declaration limit included those from Hong Kong, Taiwan, and South Korea, but Chinese made up the majority.

Thailand rejects WTO talks on PHL cigarette export dispute Business World 2nd Mar 2020
Thailand declined to discuss at the World Trade Organization (WTO) its dispute with the Philippines over the latter’s cigarette exports, further prolonging the 12-year trade saga. The WTO had included on the agenda for its Feb. 28 meeting a discussion of customs and fiscal measures connected to Philippine cigarette exports to Thailand. The Philippines first complained in 2008 of Thailand’s customs valuation on cigarette imports, which the WTO decided in favor of the Philippines in 2010. The Department of Trade and Industry (DTI) said in November that it is considering retaliatory measures for Thailand’s non-compliance with the WTO ruling. DTI said it may impose quantitative restrictions or tariffs on Thai automotive exports to the Philippines. Thailand wrote to the WTO on Feb. 26 seeking the removal of the agenda item, saying that such discussions fall outside the required timeframe.

Jurisprudence on treaty termination sought by Senate Business World 2nd Mar 2020
The Senate on Monday adopted a resolution asking the Supreme Court to come up with jurisprudence on whether President Rodrigo R. Duterte can end a treaty without Senate concurrence. Twelve senators voted to adopt the document sponsored by Senate President Vicente C. Sotto III, while seven abstained. The move comes after President Duterte on Feb. 11 announced his decision to end a military agreement with the US on the deployment of troops for war games. The presidential palace has said it doesn’t need to seek permission from the Senate to terminate the two-decade-old visiting forces agreement. The 1987 Constitution is silent on the matter.

Senators still looking to SC to clarify role in treaty exit BusinessMirror 2nd Mar 2020
SEN. Panfilo Lacson confirmed over the weekend Senate leaders are set to go to the Supreme Court to seek affirmation that the Senate mandate to ratify treaties like the Visiting Forces Agreement (VFA) also extends to their abrogation. Lacson said he took up the matter with Senate President Vicente Sotto III, who assured him they will act on the matter. “We discussed it and SP [Senate President] said next week. But I think there’s a resolution that they’ll ask members to adopt on the floor although [it has no] bearing, strictly speaking. We want our members to be united when a petition is filed, unlike, say, where we have a resolution that is not adopted,” Lacson said in a mix of English and Filipino.

National Government 2019 subsidies to GOCCs rise 47% to P201.5 billion Business World 2nd Mar 2020
THE National Government’s subsidies to state corporations rose to P201.524 billion in 2019, exceeding the P187.1 billion budgeted for the year after some offices exceeded their initially-estimated supplemental funding requirements, the Bureau of the Treasury (BTr) said. According to BTr’s cash operations report said the growth rate in 2019 subsidies to government-owned and -controlled corporations (GOCC) was 47.47%. In December, subsidies amounted to P25.402 billion, far exceeding the year-earlier total of P2.18 billion. Philippine Health Insurance Corp. (PhilHealth) received the largest subsidy of P72.702 billion, exceeding the original P67.35 billion budgeted. PhilHealth accounted for 36.08% of all subsidies and its 2019 total rose 37.3% .

‘Philippines misses out on $12-B potential investments due to CITIRA delay’ philstar.com 28th Feb 2020
The Philippines has missed out on about $12 billion potential investments in the last two years due to the prolonged deliberation on the proposed second package of tax reform which seeks to reduce the corporate income tax (CIT) and rationalize fiscal incentives, Albay Rep. Joey Salceda said. To bring back these potential investments, he said the House of Representatives is willing to adopt the Senate version of the Corporate Income Tax and Incentives Reform Act (CITIRA) for the quick passage of the bill into law. CITIRA seeks to gradually bring down the CIT to 20 percent over a 10-year period from 30 percent, and introduce changes to the incentives system by making the grant of perks to firms performance-based, targeted, time-bound and transparent. The CITIRA bill has been approved on third and final reading at the House of Representatives, while the bill is still pending at the Senate.

OFWs, Filipino students may return to Hong Kong, Macau BusinessMirror 19th Feb 2020
OVERSEAS Filipino workers (OFW) and Filipino students are now allowed to return to Hong Kong and Macau, but at their own risk. The travel ban will still be in place for tourists. They would have to sign a waiver that they are aware of the risk they could be exposed to novel coronavirus (COVID-19) if they head to both territories, which are special administrative regions of China. The travel ban will also cover Filipinos and their foreign spouse or children, and holders of diplomatic visas from both places, who will be heading to the Philippines, on the condition they go through the mandatory 14-day quarantine. Philippine Overseas Employment Administration (POEA) Administrator Bernard P. Olalia confirmed the development, saying they will resume the processing of OFWs as soon as thedecision takes effect. The lifting of the partial deployment ban on Hong Kong and Macau comes a few days after the government completely removed the travel ban for Taiwan due to the COVID-19 last Friday.

No more VFA? PH, U.S. ‘will work out something else’ – Romualdez Rappler 18th Feb 2020
As the Philippines and the US count down to the end of their Visiting Forces Agreement (VFA), diplomats from both countries said they would figure out ways to maintain robust bilateral relations. “The relationship between the Philippines and the United States is far more than just simply VFA and many other things. So while it is an important document that covers our relationship with the United States on a military-to-military basis, I think that moving forward, we will try to find ways to be able to continue that relationship,” Philippine Ambassador to the US Jose Manuel “Babe” Romualdez said on Tuesday, February 18. “That, of course, will be a decision that will have to be made by both militaries,” he added, speaking to reporters in a briefing on the sidelines of the annual board meeting of the US-Philippines Society, a group of influential Filipino and American diplomats, businessmen, and other personalities aiming to “raise the profile” of the Philippines in the US.

US businessmen worry over termination of VFA philstar.com 14th Feb 2020
The American Chamber of Commerce of the Philippines Inc. (AmCham) has expressed concern over the Philippines’ move to terminate a military agreement with the US. The group supports the concern raised by US Defense Secretary Mark Esper on the termination of the Visiting Forces Agreement (VFA). Esper said terminating the military deal is a move in the wrong direction. Esper also said ending the defense pact would be moving in the wrong direction  as the two countries and  other partners in the region are telling China to follow international rules of order.

Philippines improves score in International Intellectual Property Index Business World 13th Feb 2020
THE Philippines’ score improved by nearly four percentage points in the US Chamber of Commerce’s (USCC) 2020 International Intellectual Property Index, after its implementation of additional anti-counterfeiting and piracy measures and the addition of new indicators in the index. The country kept its ranking of 37 out of 53 countries. Last year, the index included 50 countries. The Philippines’ key strengths, the report said, is in fast-tracking the trade mark registration period, amendments to the intellectual property (IP) code to strengthen criminal sanctions, research and development incentives, IP rights legislation, and capacity building. But the report said the country has barriers for licensing and technology transfer, significant gaps in life sciences and content-related IP rights, and rampant online and software piracy.

‘Slim chance of U.S.-PHL FTA talks starting this year’ BusinessMirror 13th Feb 2020
The prospect of negotiating a free-trade agreement (FTA) with the United States is becoming dimmer by the day after the Philippine government withdrew from the Visiting Forces Agreement (VFA), business leaders said on Wednesday. Trade Secretary Ramon M. Lopez said he can only cross his fingers the US treats trade relations different from political and security affairs. American Chamber of Commerce of the Philippines Executive Director Ebb Hinchliffe, who was earlier optimistic about the prospect of a Philippines-US FTA, also said it is now impossible for a trade deal between the two camps, albeit for different reasons. “The prospects of having FTA talks in 2020 were very slim. It is an election year in the US and not a good time for public discussion of trade talks.”

PIFITA bill expected to sail through Senate Business World 13th Feb 2020
The measure simplifying the tax structure for financial instruments is expected to make smooth progress in the Senate. The proposed Passive Income and Financial Intermediary Taxation Act (PIFITA) was broadly supported by stakeholders appearing at the hearings, with some reservations, which the panel hopes to smooth out at technical working group (TWG) level. PIFITA seeks to reduce the various tax rates to 36 the government charges on passive income from the current 80. It seeks to impose a uniform 15% rate on interest income and dividends. The microfinance industry, chiefly represented by non-government organizations (NGOs), opposed the repeal of the 2% preferential tax, in lieu of all national tax, provided under the Tax Reform for Acceleration and Inclusion (TRAIN) Law. Prior to this, micro-finance NGOs were required to pay 5% or 12% value-added tax and other national taxes.

Taiwan mulls countermeasures if Philippines doesn't lift entry ban Yahoo News 13th Feb 2020
Taiwan is considering countermeasures if the Philippines does not lift a ban on Taiwanese citizens visiting the country over fears about the coronavirus, the island's foreign ministry said on Thursday. The Philippines, more than 115,000 of whose nationals work in Taiwan in factories and as domestic helpers, said this week it had included Taiwan as part of a ban on people from China visiting the country. Foreign Ministry spokeswoman Joanne Ou told reporters in Taipei that Taiwan had a planned response if the Philippines maintained its ban, but she declined to elaborate, saying a decision was awaited from the Philippines government.

Trump says he does not mind Duterte ending VFA Business World 13th Feb 2020
US President Donald Trump said he did not mind Philippine President Rodrigo R. Duterte’s decision to end a decades-old military agreement with the United States, a position at odds with that of his defense secretary who viewed the move with dismay. Mr. Duterte on Tuesday announced the termination of the two-decade-old visiting forces agreement (VFA), which governs the deployment of troops for war games. US Defense Secretary Mark Esper called the decision “unfortunate” as Washington and its allies press China to abide by international rules in Asia. “I don’t really mind if they would like to do that, it will save a lot of money,” Trump told reporters at the White House. Mr. Trump has frequently expressed a desire to bring US military forces home from decades-long deployments abroad and has strong-armed some allies into paying more for the right to US defense.

European Commission says administration’s drug war, death penalty are ‘serious concerns’ Business World 11th Feb 2020
The European Commission has raised “serious concerns” about President Rodrigo R. Duterte’s war on drugs, attacks on human rights defenders and his plan to restore capital punishment. The commission also listed the country’s shrinking civil society space and a plan to lower the minimum age of criminal responsibility as issues in its GSP+ report released in Brussels on Monday. The report called the possible return of the death penalty for drug offenders “a worrying development” and would violate an international protocol ratified by the Philippines in 2007. On the other hand, the Philippines had made some progress in fighting poverty, hunger, joblessness and in protecting the environment. The government has passed legislation on biodiversity conservation and has been tackling corruption, it said. The Philippines maintained ratification of all 27 GSP+ conventions and fulfilled its reporting obligations except for racial discrimination, according to the biennial report covering 2018 to 2019.

Philippines scrapping military cooperation pact with US TheHill 11th Feb 2020
The Philippines will end a two-decade-long military agreement with the U.S., officials announced Tuesday. The nation’s announcement that it will terminate the Visiting Forces Agreement comes amid increasingly friendly relations with China and a cooling of the U.S.-Filipino relationship under President Rodrigo Duterte, as well as reluctance on the Philippines’ part to confront Beijing over South China Sea territorial disputes. About 300 joint exercises between the two nations’ militaries take place annually under the deal, with allows the U.S. to rotate military forces through Philippine bases. While the agreement is still in place, Foreign Secretary Teodoro Locsin said on Twitter that Philippine officials have delivered the notice to terminate to the American Embassy in Manila. The delivery will start a 180-day countdown after which the pact will officially lapse.

VFA termination notice ready but DFA still wary Business World 10th Feb 2020
The Philippine Department of Foreign Affairs (DFA) is ready to send the termination notice on the Visiting Forces Agreement (VFA) with the United States, even as the country’s top envoy said such a move would place the Philippines on the “losing end.” President Duterte on January 23 threatened to terminate the VFA, giving the US government 30 days to reverse the cancellation of a senator’s visa. The plan to abrogate the VFA was followed by the President’s directive for Cabinet members to “boycott” trips to the US and Mr. Duterte’s plan to skip the US-Association of Southeast Asian Nations Summit in March. With these, the DFA Secretary said the “VFA is the logical target when the (Philippine’s) sovereign justice system is disrespected.” Nonetheless, he said the benefits of retaining the VFA outweigh the country’s interest in pushing through with the termination. The Foreign Affairs Chief explained that in the absence of a VFA, other PH-US defense agreements, such as the Mutual Defense Treaty (MDT) and the Enhanced Defense Cooperation Agreement (EDCA), will be inoperative.

Duterte determined to terminate VFA Business World 10th Feb 2020
President Duterte said he is determined to end the Visiting Forces Agreement (VFA) with the United States despite American President Donald Trump himself wanting to keep the accord. Mr. Duterte said he will not reciprocate the efforts of Mr. Trump, along with “others” whom he did not specify, to maintain the bilateral military cooperation. Last Friday, Presidential Spokesperson Salvador S. Panelo said Mr. Duterte will be talking to Mr. Trump about the VFA, but there is so far no confirmation whether the discussion already took place. In late January, Mr. Duterte announced that he wanted to cancel the VFA in the wake of the cancellation of the US visa of Senator Ronald M. Dela Rosa, his political ally and former police chief.

SolGen files quo warranto petition vs. ABS CBN Manila Bulletin News 10th Feb 2020
Government lawyers on Monday morning, February 10, asked the Supreme Court (SC) to forfeit the legislative franchises of ABS-CBN Corporation and its subsidiary, ABS-CBN Convergence, Inc. The plea was contained in a quo warranto petition filed by the Office of the Solicitor General (OSG) led by Solicitor General Jose C. Calida. A quo warranto is an action brought in the name of the Philippines against a person who usurps, intrudes into, or unlawfully holds or exercises a [] franchise. Published reports stated that ABS-CBN’s franchise will expire next month. Several bills have been filed in Congress for the renewal of the franchise. The OSG's statement indicates that the OSG wants to put an end to what it discovered to be "highly abusive practices of ABS-CBN benefitting a greedy few at the expense of millions of its loyal subscribers. It also stated that ABS-CBN abused the privilege granted by the State when it launched and operated a pay-per-view channel in ABS-CBN TV Plus, the KBO Channel, without prior approval or permit from the National Telecommunications Commission.

Philippines: Duterte Seeks to Shut Network Human Rights Watch 10th Feb 2020
The Philippine Congress should reject President Rodrigo Duterte’s apparent misuse of regulatory powers against the country’s largest broadcast network, Human Rights Watch said today. On February 10, 2020, the Office of the Solicitor General filed a petition before the Supreme Court seeking to nullify the franchise of ABS-CBN, which has long faced Duterte’s ire for criticizing his “war on drugs” and other policies. Congress is authorized to renew the licenses of broadcasting companies, but the House of Representatives has yet to act on nearly a dozen renewal bills already filed. The administration’s legal action could prevent Congress from extending the 25-year-old network’s permit, which expires on March 30. Duterte has publicly attacked ABS-CBN, accusing it of “swindling” him by not airing his advertisements during the 2016 presidential campaign, a charge the network has denied. He has also urged the media company to “just sell” its assets, vowing that he would make sure its franchise would not be renewed. Duterte and his allies have accused the network of being sympathetic to the political opposition. Its owners, the Lopez family, are longtime political opponents of the former Ferdinand Marcos dictatorship. Administration officials have also complained about the network’s critical coverage of the “drug war.”

NGCP claims to have thwarted 100 cyberattacks on grid system Business World 10th Feb 2020
The National Grid Corp. of the Philippines’ (NGCP) transparency regarding its operations has become an issue after reports that it has detected 100 cyberattacks, officials said. NGCP President Anthony L. Almeda disclosed the detection of cyberattacks “a hundred times,” in the past few weeks. On top of this, National Transmission Corporation (TransCo) said the NGCP uses the NARI Transmission Control Operational Platform System, which allows remote access to the grid. Such controls are remotely accessible. Energy Secretary Alfonso G. Cusi pressed the NGCP to subject its operations to audit to ensure that security measures are in place to counter attacks. NGCP Spokesperson Cynthia P. Alabanza said the detections are proof that its cybersecurity efforts are effective.

OSG asks high tribunal to cancel ABS-CBN franchise Business World 10th Feb 2020
THE country’s chief government lawyer has asked the Supreme Court to revoke the franchise of a media network critical of President Rodrigo R. Duterte, accusing it of “highly abusive practices.” Solicitor General (OSG) Jose C. Calida in a statement on Monday said his office had filed a lawsuit accusing ABS-CBN Corp. of violating several laws, including one against foreign ownership in media. ABS-CBN shares fell 30 centavos to P16.70 at the close of trading yesterday. “We want to put an end to what we discovered to be highly abusive practices of ABS-CBN benefiting a greedy few at the expense of millions of its loyal subscribers,” he said in a statement. “These practices have gone unnoticed or were disregarded for years.” The media network called the lawsuit “an effort to shut down ABS-CBN to the serious prejudice of millions of Filipinos who rely on the network for news, entertainment and public service.”

Innovation law to improve technology research, dev’t Business World 10th Feb 2020
The Philippine Innovation Act set for implementation could improve the innovation environment in the country, Socioeconomic Planning Secretary Ernesto M. Pernia said, with expenditure on science and technology to increase and be in line with its ASEAN peers. Mr. Pernia said currently, the country’s spending on science and technology as a share of gross domestic product (GDP) is at 0.15%, while the budget allocation for research and development is at 0.39% of the national budget. He said the target is to increase this in line with other advanced countries in ASEAN region that are spending “massively” in research and development to account for around one percent of their GDP. For instance, he said Singapore “started spending really massively for the training of scientists (and on research) to get the innovation ecosystem going” as early as 1991, following its 25-year “economic haze” from 1965-1990.

FedEx expands in Philippines, cutting China dependence Nikkei Asian Review 18th Feb 2020
U.S. courier FedEx will develop a regional cargo terminal at Clark Air Base in the Philippines as the bruising U.S.-China trade war forces the company to rely less on its Guangzhou hub. The construction of the new and larger gateway, which began late last year, will be completed by the end of 2020 and will house FedEx's expanded Philippine operations, government and company officials confirmed. FedEx's decision to push ahead with plans to build a terminal at Clark, a former U.S. military base, is also a vote of confidence in the Philippines, despite President Rodrigo Duterte's renewed antagonism toward the U.S.

Outsourcing subsectors cut growth targets through 2022 amid hurdles Business World 10th Feb 2020
Several outsourcing subsectors cut their revenue targets across-the-board after the industry lowered its growth figures under a road map through 2022 due to geopolitical challenges, protectionism and automation. Information technology (IT) and software trails the other subsectors with a 2.7-6.2% annual revenue growth target from 2019 to 2022, lower than its original 11.4% goal, the Information Technology and Business Process Association of the Philippines (IBPAP) said in a report on Monday. The industry in November cut its revenue target to a compound annual growth of 3.5-7.5% from 9.2% set in 2016, based on a study conducted by the Everest Group. Global in-house centers lowered their revenue goal to 3.2-5.2% from 8.4% set in 2016, while contact centers and business processing cut theirs to 3.3-7.4% from 8.2%. Revenue projections of two subsectors were still higher than the industry goal despite the cuts. Health information management set a target of 7.3-10.8% from 13%, while animation and game development’s new goal fell to 6.8-11.7% from 14%, according to the report.

U.S. postpones summit with ASEAN leaders amid coronavirus fears: sources Reuters 29th Feb 2020
The United States has decided to postpone a meeting with leaders of Southeast Asian countries it had planned to host on March 14 due to worries about the coronavirus outbreak, two U.S. officials familiar with the matter said on Friday. President Donald Trump had invited leaders of the 10-member Association of Southeast Asian Nations (ASEAN) to meet in Las Vegas after he did not attend a summit with the group in Bangkok in November. “As the international community works together to defeat the novel coronavirus, the United States, in consultation with ASEAN partners, has made the difficult decision to postpone the ASEAN leaders meeting,” one of the sources, a senior administration official, told Reuters. The official added that the United States values its relationships with ASEAN member nations and looks forward to future meetings.

Wildlife cybercrime on the rise in ASEAN The ASEAN Post 25th Feb 2020
With social media already playing a major role in human trafficking, arms trading and drug smuggling, it is perhaps no surprise that the illegal wildlife trade is the latest cross-border crime to go online. Long known as a hub for wildlife trafficking, Southeast Asia’s unsavoury reputation has been enhanced by social media – with numerous cases of buyers and sellers conducting deals while hiding behind a cloak of anonymity. The region’s high mobile penetration rate offers buyers easy access to black market traders and vice versa, and the lack of effective monitoring combined with the popularity of social media platforms means wildlife cybercrime is a growing concern.

US to reaffirm commitment to Asean in upcoming summit: Diplomats The Straits Times 25th Feb 2020
Eight Asean leaders will gather in Las Vegas on March 14 for the US-Asean summit. Diplomatic sources said that as of last Friday, the only leaders absent would be Philippines President Rodrigo Duterte and Malaysia Prime Minister Mahathir Mohamad. But both are expected to send representatives - in the case of the Philippines, Foreign Secretary Teodoro L. Locsin Jr - the sources said. It is yet unknown whether Myanmar would be represented by President Win Myint or State Counsellor Aung San Suu Kyi. Subsequently, Indonesian President Joko Widodo will travel to Washington to visit the White House.

ASEAN nations hit by data breaches, ransomware attacks and cryptojacking last year, Interpol says Illicit Trade News Network 20th Feb 2020
Southeast Asia experienced “significant” levels of cyber crime in 2019, including major data breaches, crippling ransomware attacks and a huge rise in cryptojacking, according to a new report from Interpol. In its ASEAN Cyberthreat Assessment 2020, the International law enforcement agency revealed that the region saw an increase in botnet,business email compromise (BEC) attacks, banking malware attacks crypto-ransomware and cryptojacking. The Interpol ASEAN Cybercrime Operations Desk concluded its report by vowing to enhance cyber crime intelligence for effective responses to cyber crime in the region, strengthen cooperation for joint operations against cyber crime, and develop regional capacity and capabilities to combat cyber crime.

Occupancy cost in Manila premium offices among the world’s lowest, says JLL report Business World 20th Feb 2020
Occupancy cost for premium office locations in Manila are among the lowest across the globe, a recent report by Jones Lang LaSalle (JLL) found. In its Premium Office Rent Tracker report published last month, the real estate consultancy firm ranked Manila the 66th in its review of 86 markets for the cost of rent for premium office spaces. It said total occupancy cost in Manila is at $54 (about P2,731) per square foot (sq. f.) per year, making it the third most affordable among the Southeast Asian cities covered by the report. The others are Malaysia’s Kuala Lumpur at $30 per sq. f. per year; Thailand’s Bangkok at $46 per sq. f. per year; Indonesia’s Jakarta at $60 per sq. f. per year; Vietnam’s Ho Chi Minh City at $78 per sq. f. per year; and Singapore at $117 per sq. f. per year.

Tonik Financial Raises $6m, To Launch Philippines’ First Digital Bank AsiaTechDaily 25th Feb 2020
Southeast Asia’s first pure-play digital bank, Singapore-based Tonik Financial, announced that it has recently closed an equity funding round that raked in $6 million, co-led by venture capital firms Insignia Ventures Partners and Credence Partners. In a statement, Tonik said the funding round, which was also participated in by regional family offices and angel investors, will be used to finance the launch of Tonik Digital Bank Inc, the first digital-only bank in the Philippines. The bank received approval from the Philippine central bank last January, allowing it to provide digital banking services, such as retail banking, deposits, and consumer loans in the country, Tonik said. The bank is set to start commercial operations in the third quarter of this year. Tonik Digital Bank is the company’s first digital bank in Southeast Asia and one of the very few globally to be operating on the basis of its own bank license. Its launch in the Philippines is timely as the country represents a $140-billion retail deposit market and a $100-billion unsecured consumer lending opportunity.

Wells Fargo downsizes IT operation in PH Manila Bulletin Business 24th Feb 2020
Wells Fargo & Co., an IT company, is transferring a portion only of their activity to India, Philippine Economic Zone Authority (PEZA) Director General Charito B. Plaza has confirmed. According to Plaza, such transfer consists only one out of their total 200 business lines operating in the Philippines. The locator company assured PEZA that their move to transfer IT/technical BPO services to India is a decision they implemented in all its sites or also in other countries. Notwithstanding, Wells Fargo & Co. other departments employing more than three thousand Filipino employees will continue their operations in the Philippines, she said.

BDO Leasing to appeal RS suspension with SEC Business World 17th Feb 2020
BDO LEASING and Finance, Inc. (BDOLF) will appeal the suspension of its registration statement (RS) with the Securities and Exchange Commission (SEC) after this was flagged for being “materially incomplete and inaccurate.” This comes after parent bank BDO Unibank, Inc. sold its controlling stake in BDOLF to third parties and the revisions in BDOLF’s primary business to become a holding company. In a filing with the local bourse on Monday, the leasing and financing arm of Sy-led BDO Unibank, Inc. said it wants to engage the SEC for a reconsideration of the regulator’s decision as soon as possible. “BDOLF believes that there are no sufficient grounds for the suspension of its Registration Statement (RS),” it said, noting it has been transparent and timely with reporting material transactions. “The protection of minority shareholders has always been considered by BDOLF. In particular, minority shareholders are vested with appraisal rights and the Mandatory Tender Offer will allow them to sell their shares at a premium,” BDOLF said.

Online mortgage brokerage platform launched in PHL Business World 10th Feb 2020
Nook, the Philippines’ first online mortgage brokerage platform, seeks to remedy homeowners' struggle of applying for a mortgage. With the goal of streamlining and simplifying the property loan application process in the country, the platform aims to enable Filipinos to conduct property search, do loan comparisons, and experience a seamless loan application process online. It offers users an end-to-end platform, from property search to bank approvals, empowering more Filipinos to gain seamless access to financial options available to them.To facilitate this, the company has partnered with top banking institutions in the Philippines, including Asia United Bank (AUB), BDO Unibank, BPI Family Savings Bank, Bank of Commerce, CTBC, China Banking Corp., Rizal Commercial Banking Corporation and Security Bank. Talks with five other banks are ongoing.

Banks rate cybersecurity as top concern Business World 10th Feb 2020
Board members and Chief Risk Officers (CROs) of banks and other financial institutions have identified cybersecurity as their top short-term (12 months) risk priority. This was revealed in the Tenth Annual Global Risk Management Survey conducted by EY (Ernst & Young) and the Institute of International Finance. Survey participants comprised 94 firms in 43 countries with 23% based in Asia. Cybersecurity emerged at the top spot for the third straight year, considering that it only surfaced as a risk concern in 2015. We see this as a result of rapid technology development and the onslaught of banks embarking on digital transformation journeys in the last five years. The refreshed survey also affirmed cybersecurity as one of the major risks to anticipate in the next decade. Some of the key issues identified were concerns on industry-wide cybersecurity attacks, third-party security, cloud transition, and cybersecurity capabilities.

Cambodia, Indonesia, Vietnam: Philippines’ military models, post-US South China Morning Post 20th Feb 2020
The unravelling of the US-Philippines alliance and President Donald Trump’s dismissiveness towards it may also engender spillover effects in other key US allies such as Thailand and South Korea. Alliances have been one of America’s traditional strengths. As it rolls out its Indo-Pacific strategy, gaining more – not losing one – would play to its advantage. So with the clock ticking on the 180-day transition window before the VFA is nullified, there is still plenty of time to salvage the agreement. But if the alliance is allowed to wither, there are three possible models already present in the region that Manila could pursue: gravitate towards China, as Cambodia has; follow Indonesia’s example of non-alignment; or become more self-reliant in defence like Vietnam.

BOC eyes P25-B rice tariff take in 2020 BusinessMirror 2nd Mar 2020
THE Bureau of Customs (BOC) is eyeing a 20-percent increase in its total rice tariff collection to reach at least P25 billion this year amid the downside risks posed by the coronavirus outbreak. Data from the BOC obtained by the BusinessMirror showed the grand total 2019 rice tariff collection before and after implementation of the rice trade liberalization law (RTL) reached P21.6 billion from traders who imported a record-high 3.13 million metric tons (MMT) of rice, making the Philippines the world’s top rice importer, exceeding China’s 2.4 MMT.

BoC sees ‘huge’ drop in cargo volume in Feb. Business World 18th Feb 2020
The Bureau of Customs (BoC) is seeing 50% year-on-year drop in trade volume in the first half of February, as the coronavirus disease 2019 (COVID-19) outbreak disrupted global supply chains. The first 15 days of February, as compared to the first 15 days of February last year, is a little over a half only of the TEUs (twenty-foot equivalent units), containers coming in. Sought for comment, BoC Assistant Commissioner and Spokesperson Vincent Philip C. Maronilla told BusinessWorld that the 50% decrease in volume is considered “huge” for the agency’s collections, as it saw declines in cargo from China, the center of the COVID-19 outbreak.

Navy pilots undergo anti-submarine warfare training Philippine News Agency 20th Feb 2020
The Philippine Navy (PN) on Wednesday said pilots and aircrew tasked to man its two AgustaWestland (now Leonardo) AW-159 "Wildcat" helicopters are currently undergoing anti-submarine warfare (ASW) training. Philippine Navy (PN) flag-officer-in-command, Rear Admiral Giovanni Carlo Bacordo said these trainings, which are programmed for the entire year, are designed to equip personnel with adequate knowledge in manning these specialized helicopters the finer points of submarine detection and prosecution. These involved training in the use of various surveillance systems of the AW-159s including its dipping sonar which is its primary equipment for submarine detection.

Peza eyes defense industrial complexes BusinessMirror 18th Feb 2020
THE Philippine Economic Zone Authority (Peza) is eyeing to transform several economic zones into defense industrial complexes that will allow the country to produce military equipment and weapons on its own. In a statement on Monday, Peza Director General Charito B. Plaza said the agency is putting in efforts to fully industrialize the Philippines with the creation of new economic zones. These new economic zones will include defense industrial complex, to be established among the potential economic zones of the military’s reservation areas. According to Plaza, the defense industrial complex will allow the country to manufacture its own military and defense equipment, as well as weaponry.

TSA cites improved security at Manila international airport Business World 13th Feb 2020
Inspectors from the Transportation Security Administration (TSA) of the US Department of Homeland Security were satisfied with improved security measures now being enforced at the country’s main gateway, the Ninoy Aquino International Airport (NAIA), Philippine airport authorities said on Sunday. TSA and aviation security auditors from the Office for Transportation Security (OTS) wrapped up their latest security audit of terminals and US-bound airlines operating at the Manila airport on Feb. 7, the Department of Transportation, Manila International Airport Authority (MIAA) and OTS said in a joint statement.

Senate divided as Philippines sends VFA notice of termination to U.S. Rappler 12th Feb 2020
MANILA, Philippines – The Senate on Tuesday, February 11, split along political lines after the Philippines sent its notice of termination of the Visiting Forces Agreement (VFA) to the United States. It was divided on whether or not the President had the power to unilaterally abrogate international agreements. In the end, the pro-administration senators withdrew their votes on theSenate resolution approved Monday, February 10, urging Malacañang to first review the VFA.

Credit cards face adversity in country where cash is king Business World 8th Mar 2020
MA. VICTORIA M. DIOQUINO, 33, switched to using electronic wallets a year ago to pay her electricity and phone bills. “Mobile payments are much more convenient and user-friendly than credit cards,” the bank employee from Parañaque City said in an interview. The space for credit card growth in the Philippines is rapidly shrinking with the rise of mobile payments. In the early days of online shopping, credit cards offered a convenient way to shop, but new mobile technologies and apps now offer a more seamless shopping experience with faster checkouts and the option of in-app payments.

Taxes from digital channels surge 92% in 2019 philstar.com 14th Feb 2020
Taxes collected by the Bureau of Internal Revenue (BIR) through its electronic channels jumped by almost two-fold to P1.2 billion in 2019 following the launch of an online facility linked to the central bank’s PESONet, the Department of Finance (DOF) said yesterday. Citing the latest data from the BIR, the DOF said tax payments collected through digital channels in 2019 surged by 92 percent to P1.2 billion in 2019 from P626.35 billion in 2018. The BIR also reported that the number of electronic transactions last year reached 446,753, up by 60 percent from the 278,602 transactions done through e-channels in 2018. Aside from this, electronic payments were made through the Union Bank Online Tax Payment Facility using automated teller machines (ATMs) or debit cards, and the PayMaya smartphone application.

PHL eyes WTO arbitration to settle cigarette row BusinessMirror 9th Mar 2020
Manila might resort to filing an arbitration case at the World Trade Organization (WTO) that would allow the multilateral trading body to determine the retaliation amount the Philippines can impose against Thailand for noncompliance with the ruling on their cigarette dispute. At the Dispute Settlement Body (DSB) meeting last Thursday, the Philippines warned Thailand it will exhaust all means to get the WTO’s approval for its request for retaliation. The country is seeking compensation from its trading partner for its failure to implement the decision on their cigarette dispute issued in 2011. In a bid to break the stalemate with Thailand at the WTO, the Philippines is studying the option of filing for arbitration, a Geneva trade official told the BusinessMirror.

Mixed bag of factors to impact inflation scenarios in ’20–DOF BusinessMirror 9th Mar 2020
PRICE increases driven by the disruption of global supply chains amid the coronavirus outbreak may force domestic producers to shift to other sources of materials to avoid production cuts, according to the Department of Finance (DOF). But, at the same time, the DOF said in its economic bulletin that the country’s inflation is seen to be pulled down by  “benign global oil prices” as Dubai crude oil dropped to $54.24 per barrel in February 2020 from $63.76 per barrel in January 2020 and $64.32 per barrel in February 2019, showing 14.9-percent month-on-month and 15.7-percent year-on-year decreases.

Supply chain disruption likely to cause price spikes — DoF Business World 8th Mar 2020
THE PRICES of goods may spike, amid the disruption of global supply chains due to the continued spread of the coronavirus disease 2019 (COVID-19), the Finance department (DoF) said on Sunday. “The disruption of global supply chains will tend to push prices up. Domestic producers will need to look for alternative supply sources to avoid production cuts,” the DoF said in its economic bulletin on Sunday. Citing initial data from the Customs bureau, the DoF said imports from China dropped by 34.7% in terms of volume in February. China is the country’s biggest trading partner. Inflation eased at a slower-than-expected 2.6% in February on softer price increases of food, transport and utilities, from 2.9% in January. This brought year-to-date inflation to 2.8%, well within the central bank’s 2-4% target for the whole year.

DOF won’t give up on Citira despite tight schedule BusinessMirror 5th Mar 2020
EVEN with just a week left before Congress goes on a break, the Department of Finance (DOF) is not backing down on its push for the passage of the bill rationalizing incentives as it is determined to convince the Senate leadership to prioritize the measure. This, even after Senate President Vicente Sotto III said that they may delay action on the pending economic bills, including the Corporate Income Tax and Incentives Rationalization Act (Citira), should the situation worsen amid the coronavirus outbreak. Finance Undersecretary Karl Kendrick Chua stood firm that passing the Citira as soon as possible is still the best way to go to attract investments that are coming out of China as a result of the US-China trade war.

‘Wider budget deficit financed PHL growth’ BusinessMirror 4th Mar 2020
THE Department of Finance (DOF) said a deficit-to-GDP ratio that is higher than the government’s target for 2019 will not harm the Philippines’s credit rating, particularly since additional funds were used to pump prime the economy. In an economic bulletin on Tuesday, Finance Undersecretary Gil Beltran said last year’s budget deficit, which was equivalent to 3.55 percent of GDP, was “financeable” due to the reduction in domestic interest rates and the national government’s debt ratios. Official government data indicated that the budget deficit of 3.55 percent of GDP in 2019 exceeded the administration’s target of 3.25 percent of GDP by 0.3 percentage point. The deficit-to-GDP ratio last year was also up from 3.2 percent in 2018.

Term deposit yields drop Business World 4th Mar 2020
YIELDS ON THE central bank’s term deposit facility (TDF) continued to go down despite lower bids on hints of possible easing from the central bank to cushion the economy against risks from the continued spread of the coronavirus disease 2019 (COVID-19). Tenders for the Bangko Sentral ng Pilipinas’ (BSP) term deposits amounted to P168.216 billion on Wednesday, higher than the P120 billion auctioned off by the central bank. However, this was lower than the P173.668 billion seen last week for the P130-billion offer. Broken down, tenders for the one-week papers hit P48.697 billion, failing to fill the P50 billion on offer and also lower than the P50.263 billion in tenders seen last week for the P40 billion offered by the BSP.

With Covid-19 hitting business, Peza seeks Citira deferment anew BusinessMirror 3rd Mar 2020
THE Philippine Economic Zone Authority (Peza) is appealing with senators to defer the passage of the bill rationalizing fiscal incentives, as any change in the tax structure will add to the injury of exporters already suffering from the coronavirus outbreak. Peza Director GeneralCharito B. Plaza said her agency supports Senate President Vicente C. Sotto III in his decision to delay action on economic bills to allow legislators to concentrate on addressing the coronavirus threat. One of the measures that will be affected by this deferral is the Corporate Income Tax and Incentives Rationalization Act (Citira) bill. She said exporters are injured by the global slowdown in the production of raw materials, as factories in China face shutdowns due to the spread of the respiratory illness first detected in Wuhan. For one, semiconductor firms here source more than 40 percent of their supplies from China, making it difficult for operations to run the usual pace.

Poll: Inflation likely picked up in Feb. Business World 2nd Mar 2020
INFLATION may have quickened slightly in February due to higher food prices, which was likely offset by lower utility and oil prices amid the coronavirus disease 2019 (COVID-19) outbreak and subsiding risks from the Taal Volcano eruption. A BusinessWorld poll of 17 economists last week yielded a 3% median estimate for February headline inflation, which is near the upper end of the 2.4-3.2% estimate given by the Bangko Sentral ng Pilipinas (BSP) on Friday. If realized, February will be the fourth straight month of quicker inflation, picking up from the 2.9% print in January. However, this will still be slower than the 3.8% logged in February 2019.

House panel sets hearing on Honda/Wells Fargo closures, PAL Layoffs Business World 2nd Mar 2020
THE House committee on labor and employment has scheduled a hearing for Tuesday on the recent closures of multinational firms’ Philippine operations and layoffs at Philippine Airlines (PAL). “I (have) a hearing on Tuesday to look (into the) closure of Honda (Cars Philippines, Inc. or HCPI), Nokia (Corp.) (and) Wells Fargo (& Co.). I will try to include PAL in the hearing,” 1-Pacman Party List Rep. Enrico A. Pineda, the committee’s chairman, said in a text message to BusinessWorld Saturday. Mr. Pineda said the hearing will focus on the cause of closures and to investigate whether employees were paid their separation benefits. The three multinational firms are “leaving the Philippines not because of country-specific reasons, but because of issues of cost and competitiveness within the companies themselves,” Albay Rep. Jose Maria Clemente S. Salceda, who also chairs the House ways and means committee, said in an aide memoire dated Feb. 24.

Special powers for PRRD to fast-track BBB hurdles House panel Philippine News Agency 2nd Mar 2020
The House Committee on Flagship Programs and Projects on Monday approved a measure granting President Rodrigo Duterte special powers to speed up the implementation of the “Build, Build, Build” infrastructure program. The panel, chaired by Tarlac Rep. Carlos Cojuangco, approved House Bill 5456, which seeks to grant special powers to Duterte to adopt a national policy that will fast-track the implementation of flagship infrastructure projects on or before 2022. The number of key infrastructure projects under the “Build, Build, Build” program went up to 100 from the original 75, after Duterte earlier ordered his economic team to revisit the roster of proposed big infrastructures. Around PHP9 trillion will be spent on the implementation of 100 flagship infrastructure projects and over 10,000 small infrastructure projects.

February inflation rate seen between 2.4-3.2% Philippine News Agency 28th Feb 2020
Philippine monetary officials project the February inflation rate to range between 2.4 percent and 3.2 percent, with the high end of the projection higher than last January’s 2.9 percent. In a statement Friday, the Bangko Sentral ng Pilipinas (BSP) said its Department of Economic Research (DER) attributed this range on account of the drop in prices of petroleum products, electricity, rice, and several food products. It, however, did not identify possible drivers of the inflation rate. Last January, rate of price increases rose from the previous month’s 2.5 percent due to faster rise of the heavily-weighted food and non-alcoholic beverages index to 2.2 percent. Other indices that provided upward pressures last month include the alcoholic beverages and tobacco, clothing and footwear; housing, water, electricity, gas, and other fuels; transport, recreation and culture, and education.

Ecozone pledges up despite CITIRA threat philstar.com 20th Feb 2020
Foreign direct investment pledges in the country’s economic zones more than doubled last year than in the same period in 2018, even as there are indications that investors remain wary of government plans to reduce their tax perks. A total of P390 billion in FDI pledges were approved last year, up 112.8% year-on-year from P183 billion in 2018, data from the Philippine Statistics Authority showed on Thursday. Approved FDI measures investment pledges in economic zones where the government offers tax and non-tax breaks to lure in locators and provide jobs to people. These pledges may or may not translate into actual inflows in the near future. For the last three months of 2019 alone, approved FDI commitments rose an annual 17% to P112.1 billion, data showed. The government counts investment pledges from seven investment promotion agencies that include free port zones in Bataan, Clark, Cagayan, Subic (SBMA), the BoI-Bangsamoro Autonomous Region in Muslim Mindanao (BOI-BARMM), as well as Philippine Economic Zone Authority (PEZA) and Board of Investments.

‘Trade deal will help cut rebellion, crime’  BusinessMirror 20th Feb 2020
INSTEAD of directly disputing the callout made on the Philippines’s human-rights reputation, Trade Secretary Ramon M. Lopez has called on the European Union to forge with the Philippines a free-trade agreement (FTA), saying this would improve the lives of people in the countryside and undercut the grounds for crime and rebellion. Lopez urged the EU to return to the negotiating table with the Philippines in crafting an FTA. He said the government is always open to crafting a trade deal with the economic bloc, as this will improve the country’s market access to EU member-states. “They know that we are open to discussing that anytime with them. The ball is in their court on how they will respond to that interest of ours. We will always be open to discussing it,” Lopez said in a recent interview with reporters.

PHL as weapons manufacturing base BusinessMirror 20th Feb 2020
The Philippines may soon become a weapons manufacturing base, joining the global club of arms producers. The Philippine Economic Zone Authority (Peza) recently disclosed plans to transform several economic zones into defense-industrial complexes that will allow the country to produce military equipment and weapons on its own. Peza Director General Charito B. Plaza said the agency can help speed up the country’s industrialization process with the creation of new economic zones. These new economic zones would include military-industrial complex that could be potentially established in the military’s reservation areas. She said the defense-industrial complex will allow the country to manufacture its own military and defense equipment, as well as weaponry. Once established, our own defense-industrial complex can be used by the Armed Forces of the Philippines to start inviting manufacturers that can help modernize the AFP.

S&P trims Philippines 2020 growth outlook Business World 19th Feb 2020
S&P GLOBAL RATINGS trimmed its growth outlook for the Philippines this year, even as it expects the economy to be one of the “least affected” by the coronavirus disease 2019 (COVID-19) outbreak in the Asia-Pacific region. In a note sent to reporters on Wednesday, S&P said it lowered its gross domestic product (GDP) growth outlook for the Philippines to 6.1% in 2020, from the already downgraded 6.2%. The global ratings agency maintained its Philippine growth forecast at 6.4% for 2022. This comes after Moody’s Investors’ Service on Tuesday reduced its GDP growth forecast for the Philippines to 6.1% from the 6.2% it gave last year.

Moody’s trims Philippines growth forecast to 6.1% philstar.com 19th Feb 2020
Global credit watchdog Moody’s Investors Service has trimmed the gross domestic product (GDP) growth forecast for the Philippines to 6.1 percent instead of 6.2 percent this year amid the global outbreak of the novel coronavirus disease (COVID-19). The outbreak adds to other pressures on growth in Asia-Pacific, with the impact felt primarily in trade and tourism, and for some sectors also through supply-chain disruptions.The shock comes on the back of a marked slowdown in 2019 as decelerating global trade hit the region. Despite the revised forecast, the Philippines is expected to remain the second fastest growing economy despite the expected GDP slowdown in emerging Asia to 5.2 percent this year from 5.7 percent last year. The projected GDP growth of the country is slightly lower than Vietnam’s 6.4 percent, but faster than India’s 5.4 percent, China’s 5.2 percent, Indonesia’s 4.9 percent, Malaysia’s 4.2 percent and Thailand’s 2.3 percent. The Philippines has posted 84 straight quarters of positive GDP growth after accelerating to 6.4 percent in the fourth quarter from six percent in the third quarter last year.

Moody’s cuts PHL growth forecast Business World 19th Feb 2020
MOODY’S Investors’ Service has cut its growth forecast for the Philippines while also trimming its outlook for some Asian countries as some sectors are expected to take a hit due to the coronavirus disease 2019 (COVID-19) outbreak. The debt watcher reduced its 2020 gross domestic product (GDP) growth forecast for the Philippines to 6.1% from the 6.2% it gave last year, which it had affirmed in a research note last month.

Neda: Fast approval of infra projects sustainable BusinessMirror 18th Feb 2020
THE National Economic and Development Authority (Neda) said the government will be able to sustain the fast approval of infrastructure projects. In a statement, Neda said the government has been making “definite progress” when it comes to the processing of infrastructure projects. Socioeconomic Planning Secretary Ernesto M. Pernia, however, gave assurances that the evaluation of these projects is being done through “careful analysis and thorough review.” Pernia added, “We want to make sure that these processed projects are sound and well-suited for the development of the country, at the national and subnational levels, and are truly responsive to the needs of the people.”

CITIRA unlikely to be passed in March Business World 18th Feb 2020
The measure lowering the corporate income tax and streamlining fiscal incentives, CITIRA (Corporate Income Tax and Incentives Rationalization Act) at PIFITA (Passive Income and Financial Intermediary Taxation Act), are not likely to hurdle the Senate before the March 13 adjournment, according to the Senate president, even as the Executive branch pressed the chamber for prompt action on the key tax reform. Mr. Sotto said the Senate leadership is scheduled to meet with the Executive department. The Senate version of the measure is still being finalized by the committee; while its counterpart, House Bill No. 4157 was approved on Sept. 13, 2019. The government is hoping the CITIRA will spur more foreign investments in the country, as it proposes to cut corporate income tax to 20% from the current 30%. However, the uncertainty over the bill’s provisions on tax incentives has been identified as one of the reasons for slowing foreign investments.

BSP eyes another rate cut in Q2 amid outbreak Business World 18th Feb 2020
The Philippine central bank may cut the key rate by another 25 basis points (bps) as early as the second quarter to shield the economy from the effects of a deadly coronavirus outbreak, according to its chief. Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno told reporters on Friday the outbreak that has killed more than a thousand and sickened tens of thousands more in China was an economic risk. The policy-making Monetary Board might enforce the rate cut next quarter if the health menace takes a bigger toll on the country’s growth than what economic managers had expected, he said. BSP cut benchmark interest rates on Feb. 6 to take advantage of slower price increases and shield the economy from the effects of a deadly coronavirus outbreak. The Monetary Board cut the key rate by 25 bps to 3.75% at its first policy meeting of the year, in line with market expectations.

Remittances reach record in 2019 Business World 17th Feb 2020
MONEY sent home by overseas Filipino workers (OFWs) reached a record high in 2019 despite global uncertainties as higher inflows from other countries offset a decline in remittances from the Middle East. Cash remittances grew by 4.1% to a record $30.133 billion in 2019 from the previous high of $28.943 billion in 2018, data from the Bangko Sentral ng Pilipinas (BSP) released on Monday showed. The growth in cash remittances last year was well above the three percent projection of the BSP for 2019. Inflows for December alone also grew by 1.9% to $2.902 billion from $2.849 billion in the same month in 2018. The month’s level likewise surged by 22.34% from the $2.372 billion recorded in November. Meanwhile, personal remittances, which include inflows in kind, climbed 1.9% to $3.216 billion in December from $3.157 billion a year ago. The whole year saw personal remittances expand by 4.1% to $33.467 billion from the $32.213 billion logged in 2018

Prolonged virus outbreak to trim growth below 6% philstar.com 14th Feb 2020
The country’s economic growth momentum could be derailed, with gross domestic product (GDP) growth slowing down further and staying below six percent if the coronavirus disease-2019 (CoViD-19) outbreak lasts about six months. Ruben Carlo Asuncion, chief economist at Union Bank of the Philippines, said in a latest research note that the impact of the virus outbreak would be in terms of GDP growth, inflation and monetary policy. “If, by some reason, the spread lasts up to about six months, annual GDP growth for 2020 will be at 5.8 percent,” Asuncion said. Economic managers expect a GDP growth of between 6.5 and 7.5 percent for this year. GDP growth for this year could pick up to 6.3 percent if the virus outbreak lasts only for three months. The Aboitiz-led bank earlier projected the country’s GDP to accelerate to 6.6 percent this year. He said the sharp decline of Chinese tourists due to the temporary travel bans is an immediate hit on the Philippine tourism industry, which accounts for about 12.7 percent of total GDP.

Trade gap narrows in December Business World 11th Feb 2020
Exports of Philippine goods grew at its fastest pace in more than two years in December, narrowing the country’s trade deficit to a six-month low amid a continued decline in imports. Preliminary data showed the value of merchandise exports picked up by 21.4% annually to $5.74 billion in December compared to a revised 12.2% year-on-year decline to $4.73 billion recorded in December 2018. December export figures drove the full-year tally to $70.33 billion, up 1.5% from the $69.31 billion in 2018’s comparable 12 months and surpassing the one percent growth target set by the Development Budget Coordination Committee for 2019. Meanwhile, merchandise imports were valued at $8.22 billion in December, down 7.6% from $8.90 billion in the same month in 2018. Imports have been declining for nine straight months since April. The import bill for 2019 amounted to $107.37 billion, down 4.8% from the $112.84 billion and falling short of the DBCC’s two-percent target set for the year.

Philippines nears first 'A' credit rating after Fitch upgrades outlook ABS-CBN News 11th Feb 2020
Debt watcher Fitch Ratings on Tuesday said it upgraded its outlook on the Philippines to positive from stable while affirming its BBB rating in the Southeast Asian nation.The positive outlook means that the Philippines is a step closer to the coveted 'A' rating which would further open up credit for the country by lowering interest rates from commercial creditors. S&P rates the Philippines as BBB+ while Moody's has given the country a Baa2 with a stable outlook. These are all investment-grade ratings which means the country is capable of meeting its financial commitments. Fitch said the outlook revision reflects its "expectations of continued adherence to a sound macroeconomic policy framework that will support high growth rates with moderate inflation, progress on fiscal reforms that should keep government debt within manageable levels and continued resilience in its external finances."

Foreign direct investments fall by 30% in January-November 2019 Rappler 10th Feb 2020
Foreign direct investments posted net inflows in November 2019, but was not enough to lift the dismal figure for the 11-month period last year. The Philippine Central Bank disclosed on Monday, February 10, that FDI registered net inflows of $623 million in November, 14.6% higher than the $543 million in the same month in 2018. This was mainly due to increases in all FDI components. Bulk of equity capital placements during the month were sourced mainly from the United States, Thailand, Japan, and South Korea. Investments were channeled mostly to financial and insurance, and real estate industries. FDI from January to November 2019 amounted to $6.4 billion, 30% lower than the $9.2 billion recorded in the same period in 2018. The BSP attributed the decline to muted investor confidence due to a global slowdown.

More fiscal reforms needed for ‘A’ rating Business World 10th Feb 2020
The sovereign credit rating upgrade by Japan’s Rating and Investment Information, Inc. (R&I) could spur investment and boost infrastructure development, but more fiscal reforms need to pass before achieving a rating level of “A,” the National Economic Development chief said. On Friday, R&I upgraded the Philippines’ credit rating to “BBB+” from “BBB” with a “stable” outlook, just a notch away from the “A” rating. R&I said it considered sustained economic growth driven by aggressive public investment, a downward trend in the share of debt to the economy despite a widening fiscal deficit, rising revenue as well as developments in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).

PHL fourth-largest remittance destination in 2019 Business World 10th Feb 2020
The Philippines was the fourth-largest destination for remittances by overseas workers in 2019, according to the World Bank’s Global Knowledge Partnership on Migration and Development (KNOMAD) program. Preliminary KNOMAD data indicate that remittances to the Philippines amounted to $35.1 billion in 2019, up 3.7% from a year earlier, behind only India ($82.2 billion), China ($70.3 billion) and Mexico ($38.7 billion). Philippine remittances were 31st relative to economic output, with a share of 9.8% of gross domestic product (GDP).

BSP seen cutting rates by 25 bps after March Business World 10th Feb 2020
J.P. MORGAN said it expects the Monetary Board to further reduce benchmark interest rates by 25 basis points (bps) next quarter to stimulate the economy in response to the novel coronavirus (2019-nCov) outbreak. In its “Global Watch: Asia” Economic Research note published yesterday, the bank said the outbreak could further magnify downside risks to economic growth, first manifesting in the “lackluster capex (capital expenditure) outlook this year.” “In our view, downside risk to GDP (gross domestic product) growth has intensified owing to potential economic impact from the current 2019-nCov outbreak on the Philippine economy,” the report said. “Amid growth concerns and a well-behaved inflation trajectory due in part to lower global energy prices, we now look for a further 25bp policy easing in 2Q20,” it said.

To boost economy, Bangko Sentral cuts interest rates by 25 basis points Rappler 10th Feb 2020
In a bid to boost the economy amid a global slowdown and the spread of the novel coronavirus, the Bangko Sentral ng Pilipinas (BSP) Monetary Board trimmed key policy rates by 25 basis points in its first policy meeting for 2020. The Monetary Board reduced the overnight borrowing rate to 3.75%. The overnight lending and deposit facilities were likewise adjusted to 4.25% and 3.25%, respectively. The BSP decided to cut interest rates as inflation remained within the target band of 2% to 4%. But it noted upside risks to inflation, particularly the spread of African swine fever, tighter supply of rice in the international market, and the Taal Volcano eruption. With the global slowdown offsetting inflationary risks, the Monetary Board said there was enough room for a policy rate cut to support market confidence.

PHL has policy space to guard vs economic risks — IMF Business World 9th Feb 2020
THE PHILIPPINES has space to adopt expansionary fiscal and monetary policy if risks to economic growth emerge, the International Monetary Fund (IMF) said, even as it expects expansion to improve this year amid downside risks. “The Philippines has policy space and could adopt a more expansionary macroeconomic policy stance should downside risks materialize. Under these adverse risk scenarios, fiscal stimulus should be prioritized toward public capital and social spending programs,” the IMF said in its 2019 Article IV Consultation and Staff Report released on Feb. 6. “The Bangko Sentral ng Pilipinas (BSP) also has substantial space to lower its policy rate if downside surprises materialize,” it added.

R&I upgrades Philippines’ credit rating to BBB+ Business World 9th Feb 2020
JAPAN-BASED Rating and Investment Information Inc. (R&I) has upgraded the Philippines’ credit rating on the back of its positive growth performance, healthy fiscal conditions and its infrastructure development drive. R&I has upgraded the country’s credit rating by a notch to “BBB+” from “BBB”, just a step away from the minimum score within the government’s targeted “A” scale. R&I also assigned a “stable” outlook to its rating on the Philippines, signifying that the grade is unlikely to be changed within the short term. “R&I said the upgrade was based on its assessment of the Philippines’ positive growth performance and prospects on the back of the government’s infrastructure development drive, as well as the government’s ability to keep its fiscal condition healthy,” the Bangko Sentral ng Pilipinas’ Investor Relations Office (IRO) said in a statement on Friday.

Gross international reserves slip in January Business World 9th Feb 2020
THE COUNTRY’S dollar reserves slipped at end-January as the government paid its foreign exchange obligations, latest central bank data showed. Preliminary data from the Bangko Sentral ng Pilipinas (BSP) released on Friday showed gross international reserves (GIR) stood at $86.422 billion as of January, down by 1.61% from the $87.839 billion seen at end-December but still higher by 4.77% from the $82.481 billion seen as of end-January 2019. The end-January turnout ended five successive months of higher dollar reserves. Despite this, the level was still within the $86-billion target GIR level of the central bank for this year. “The month-on-month decline in the GIR level reflected outflows arising from the national government’s foreign exchange withdrawal, which was used mainly to pay its foreign exchange obligations,” the BSP said in a statement.

Jan. inflation fastest in 8 months Business World 6th Feb 2020
The overall year-on-year increase in prices of widely used goods picked up for the third straight month in January by its fastest pace in eight months, the government reported. Preliminary data from the Philippine Statistics Authority (PSA) showed headline inflation at 2.9% last month, picking up from the 2.5% pace in December, albeit still slower than the 4.4% inflation rate in January 2019. The January inflation result marked the fastest pace in eight months or since the 3.2% reading in May 2019. The latest headline figure falls within the 2.5-3.3% estimate given by the Bangko Sentral ng Pilipinas (BSP) for January, and 2-4% for the year. Core inflation, which discounted volatile prices of food and fuel, stood at 3.3% in January, picking up from 3.1% the previous month and the fastest since the 3.5% in May 2019.

Hit, but also gain in virus fallout BusinessMirror 6th Feb 2020
THE Philippines may take a hit from the business slowdown in China caused by the coronavirus outbreak, but the country can also benefit through the transfer of global production and orders to here, according to Trade Secretary Ramon M. Lopez. Lopez on Wednesday told reporters the country may experience a reduction in transactions with China, its largest trading partner. The coronavirus outbreak there that forced businesses to shut down their operations temporarily is hampering the flow of goods from within and outside. “Even in our industries here, such as appliance makers, most of their parts come from China. If at all, there might be some delays for now in the delivery,” Lopez said. “There is a delivery from their source parts suppliers.”

PHL domestic liquidity expands in December BusinessMirror 6th Feb 2020
THE Bangko Sentral ng Pilipinas (BSP) on Wednesday said the country ended 2019 with more cash circulating in the local economy, which it attributed to the rise in bank lending. The BSP said domestic liquidity—broadly measured as M3 —expanded by 11.4  percent to about P13 trillion in December 2019, faster than the 9.8-percent increase in November. A growing cash supply is often beneficial for an expanding economy such as the Philippines, as it provides fuel to the productive sectors of the country. However, an excessively slow M3 expansion could be detrimental to the country’s overall economic growth especially if it is not enough to fuel productive activities. In contrast, excessively high cash supply growth could stoke inflationary pressures and pull prices upwards.

Gov’t fund-raising generates nearly P1-T in 2019 Business World 6th Feb 2020
THE government raised a total of P995 billion in 2019 from both domestic and external sources, the Department of Finance (DoF) said. 70% of total gross borrowing last year was sourced from domestic lenders, generating P693.8 billion, while the remaining 30% were from external sources. Of the external sources, P185.7 billion were raised through global bonds, P37.06 billion via project loans and P78.2 billion in program loans. The government conformed with the target 70:30 borrowing mix, adopted to minimize exposure to external risks while developing the domestic debt market. The government kicked off 2019 by issuing $1.5 billion via 10-year dollar-denominated global bonds in January priced at 110 basis points (bps) above benchmark US Treasuries, followed by the 750 million euros raised from the European debt market at 70 bps above benchmark in May.

DOE clears 9 firms’ power projects for conduct of grid impact study BusinessMirror 5th Mar 2020
THE Department of Energy (DOE) has recently cleared the power projects of nine power firms for the conduct of a gird impact study (GIS). These power projects could generate 2,820.5 megawatts (MW) of capacity for the country. The 1,100-MW natural gas-fired power plant project of Batangas Clean Energy Inc., a company controlled by taipan Lucio Tan, is the biggest project in the DOE’s October-November 2019 list of companies issued with clearance for GIS. A clearance for the conduct of a grid impact study is necessary for a power firm before it can proceed with the construction of its power project.

PCC: Concerns over foreign ownership of utilities may be addressed through regulation Business World 2nd Mar 2020
National security concerns arising from the removal of foreign ownership restriction in telecommunications, transportation and other industries can be addressed through regulation, according to the Philippine Competition Commission (PCC) commissioner. The House of Representatives passed House Bill No. 78, which seeks to amend the 83-year old Commonwealth Act No. 146 or the Public Services Act, on second reading last week. The bill proposed to limit the definition of pubic utilities to power transmission and distribution, water distribution pipeline system and sewerage pipeline system. Under the 1987 Constitution, foreign ownership of public utilities is limited to 40%. Critics have said that HB 78 is a way to bypass the Constitutional limits on foreign ownership of public utilities, as it did not include telecommunications, power and transport in the definition of public utilities. HB 78 also provides a clearer definition of “public utility” which had been used interchangeably with “public services.”

Covid-19 outbreak delays 2 solar projects Philippine News Agency 25th Feb 2020
Meralco PowerGen Corp. (MGen) is delaying the commissioning of two solar projects in the latter part of the year, its president and chief executive officer Rogelio Singson said on Monday. In Manila Electric Company’s (Meralco) media briefing, Singson said these solar projects are in Tarlac and Bulacan with a combined capacity of 135 megawatts. Singson said the photovoltaic panels from China are not yet shipped out due to the coronavirus disease 2019 (Covid-19). Only 30 percent of the solar panels for the Tarlac project was delivered.Chinese engineers contracted by MGen for the Bulacan solar project could not come to the Philippines yet as the government still imposes a travel ban to and from China as well as Hong Kong and Macau to prevent the spread of the Covid-19.

Baguio eyes WTE plants on Pinsao lot Business World 20th Feb 2020
The Baguio City government is looking at a five-hectare property in Pinsao village as potential site for waste-to-energy (WTE) plants. In a statement, Mayor Benjamin B. Magalong said he already had an initial discussion with the “claimant of the property,” which covers a total of 8.5 hectares, and appropriate documentation is currently being processed. “The city’s priority development projects that will be established in the property will be the bio-mass waste to energy plant, the residual waste to energy plant..” the local government official said. Baguio City has signed an agreement with PNOC Renewables Corp., the renewable energy arm of state-run Philippine National Oil Co., for the development of a WTE facility, which can also be possibly used by neighboring towns in Benguet.

NEA to Luzon, Visayas power co-ops: Prepare summer contingency plans BusinessMirror 18th Feb 2020
THE National Electrification Administration (NEA) has called on all electric cooperatives (ECs) in Luzon and Visayas to prepare their respective contingency plans to mitigate the impact of power-supply deficiency during summer months. The agency said ECs must implement demand-side management programs and maximizing embedded power plants to reduce, if not eliminate, rotating brownouts during peak hours.  Embedded power plants are those that are not directly connected to the power grid, but still supply power to a specific area. In Luzon, five ECs—Ilocos Norte Electric Cooperative Inc., Isabela I Electric Cooperative Inc., Isabela II Electric Cooperative, Zambales II Electric Cooperative Inc. and Sorsogon II Electric Cooperative Inc.—have embedded power plants with a combined capacity of 11.696 megawatts (MW).

Auctions could bring in $20-B RE investment to PHL, study shows BusinessMirror 18th Feb 2020
A WHOPPING $20-billion investment in renewable energy (RE) could be raised by the Philippines over the next decade via auctions in and beyond the Green Energy Tariff Program proposed by the Department of Energy (DOE), a recent study has revealed. Titled “Paying Less for More-How Auctions Can Transform the Philippines Power Sector,” the latest report by the Institute for Energy Economics and Financial Analysis (IEEFA) came out as the DOE headed from President Duterte’s call for more low-cost RE through its tarrification proposal that would establish pricing for solar, wind and other RE sources. Such program seeks to push for competition and draw more investments in the green energy sector. “This leadership by the Department of Energy will enable lower pricing for consumers and industry, while ensuring a more secure supply of domestic renewable power,” said Sara Jane Ahmed, author of the report and financial analyst at IEEFA.

Gas prices up; diesel, kerosene to decline BusinessMirror 18th Feb 2020
OIL companies will increase the price of gasoline and reduce diesel and kerosene prices. In separate advisories, the oil firms said a P0.35-per-liter price hike will be implemented on gasoline products. Diesel and kerosene prices, on the other hand, will go down by P0.10 per liter each.  The price adjustment of Seaoil Philippines, PetroGazz, Phoenix Petroleum, Total Philippines, Pilipinas Shell and PTT Philippines takes effect at 6 a.m., Tuesday, February 18. Other oil companies are expected to announce soon a similar price adjustment. The price adjustment reflects movements in the world oil market.  This is the sixth consecutive week of price rollback for diesel and kerosene. 

Power co-ops advised on shortages in April, May Business World 17th Feb 2020
THE National Electrification Administration (NEA) told electric cooperatives (ECs) to prepare for possible rotational brownouts in April and May when the power supply deficiency is projected to reach up to 821 megawatts (MW) in Luzon. “DoE (Department of Energy) estimates that red alerts may be issued from April 18 to 21 and May 20 to 22, and that an additional capacity of 256 MW to 821 MW is needed in the Luzon power grid to avoid the yellow or red alert in the region,” said NEA Administrator Edgardo R. Masongsong in a briefing on Monday at the agency’s head office in Quezon City

PH could attract $20-B renewable energy investment Manila Bulletin News 13th Feb 2020
The Philippines could attract US$20 billion of renewable energy investment over the next decade through the use of auctions under the Department of Energy’s (DOE) proposed Green Energy Tariff Program, according to a new report released on Thursday. The report, titled “Paying Less for More – How Auctions Can Transform the Philippines Power Sector,” was conducted by the United States-based Institute for Energy Economics and Financial Analysis (IEEFA). The report provides the means to improve the auctions process to enable global capital uptake of 20 gigawatts of new power with a potential investment value of US$20 billion.

‘Murang Kuryente’ measure hurdles bicam; ratification seen next week Business World 11th Feb 2020
The Philippine Senate and House of Representatives are set to ratify next week the proposed “Murang Kuryente Act" (Cheap Electricity Act), which could end up taking effect in September. The legislation is known as House Bill 8869 and Senate Bill 1950 in the respective chambers. It proposes to lower power rates by, among other measures, the transfer of billions of pesos worth of Malampaya funds to help pay down debts incurred by the National Power Corp., according to the House version. Senator Gatchalian said once signed by President Rodrigo R. Duterte, the law is expected to be implemented “around September.” Funds from the government’s share of Malampaya revenue payment will cover NAPOCOR’s Stranded Contract Cost (SCC) and Stranded Debts (SD). The SCC and SD are currently passed on to power consumers through the Universal Charge.

GE Renewable Energy to support the clean energy growth in the Philippines POWER Magazine 10th Feb 2020
GE Renewable Energy booked a contract with Angat Hydropower Corporation to rehabilitate the 218 MW Angat hydropower plant located in the Philippines. This 53-year-old Angat hydropower facility supplies more than 90% of Metro Manila’s potable water needs and supports the irrigation of 25,000 hectares of farmlands in Bulacan and Pampanga. This contract is the first major rehabilitation program since the facility was commissioned in 1967. GE Renewable Energy’s hydro teams in Europe and the Americas will be responsible for the supply of two new 50 MW Francis turbines, four new 50 MW generators as well as three new upgraded auxiliary turbines and generators. They will be in charge of the assessment of the penstock, the powerhouse and a new control system will also be provided.

ERC rejects DOE price scheme for renewable-energy auction  BusinessMirror 10th Feb 2020
The Energy Regulatory Commission (ERC) does not agree with the Department of Energy (DOE) that there should be a preapproved rate for renewable energy (RE), which will be the cap for the planned auction of 2,000 megawatts (MW). According to ERC Financial and Administrative Service Head Sharon Montañer, the regulator prefers to conduct its own study on how best to arrive at appropriate rates.

As Cusi revives plan to consider nuclear energy philstar.com 7th Feb 2020
It is time for the Philippines to consider utilizing nuclear power, Energy Secretary Alfonso Cusi said yesterday. “For the past several years, the DOE, through our Nuclear Energy Program Implementing Organization, has been working under the close guidance of the International Atomic Energy Agency (IAEA) to assess the feasibility of safely and responsibly harnessing nuclear energy in the Philippines. In a survey conducted by the Social Weather Stations (SWS) commissioned by the DOE to gauge national public perception on nuclear energy , respondents said nuclear energy possess both benefits and risks. “An approval rating of 79 percent on the possible use and rehabilitation of the Bataan nuclear plant and a 65 percent approval rating on building a new nuclear plant are positive indicators on the acceptability of nuclear energy,” Cusi said.

Fitch flags Philippines lack of focus on clean energy philstar.com 7th Feb 2020
Fitch Solutions Macro Research has flagged the country’s lack of focus on clean energy development in its long-term energy plan, particularly in the development of natural gas, liquefied natural gas (LNG) and renewables, as “worrying.” The Philippines needs to import more LNG amid declining output from Malampaya, Fitch said. Based on its outlook for the Philippines LNG imports, Fitch said the country lacks emphasis on natural gas, LNG and renewables in the Philippines’ Energy Plan (PEP) 2017-2040 and  this remains a source of potential concern.

GE to upgrade 218 MW Philippines hydro plant Power Engineering International 14th Feb 2020
GE Renewable Energy has won a contract with Angat Hydropower to rehabilitate the 218 MW Angat hydro plant in the Philippines. This 53-year-old facility is some 58 km northeast of Manila in Norzagaray, Bulacan, on the Angat River. It supplies more than 90 per cent of Metro Manila’s potable water needs and provides for the irrigation needs of 25,000 hectares of farmlands in Bulacan and Pampanga. This contract is the first major rehabilitation program since the facility was commissioned in 1967. The Angat plant contains four 50 MW turbine-generator units and uses five auxiliary units. GE Renewable Energy’s hydro teams in Europe and the Americas will be responsible for the supply of two new 50 MW Francis turbines, four new 50 MW generators and three new upgraded auxiliary turbines and generators. They will be in charge of the assessment of the penstock and the powerhouse, and a new control system will also be provided.

Central bank mulls more rate, RRR cuts Business World 2nd Mar 2020
The Central Bank may cut rates by more than 25 basis points (bps) this year as the government looks to boost growth amid fears of an economic fallout due to the global spread of the coronavirus disease 2019 (COVID-19), its chief said on Thursday. In a briefing at the central bank’s headquarters, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said they will reassess how the virus could hit the economy as the outbreak worsens, with more cases confirmed outside China. The government targets 6.5-7.5% gross domestic product (GDP) growth for the year. The economy grew by 5.9% in 2019, a tad below the downward-revised goal of 6-6.5%. The Monetary Board on Feb. 6 trimmed key policy rates by 25 bps, bringing the rate on the BSP’s reverse repurchase, overnight deposit and lending facilities to 3.75%, 3.25% and 4.25%, respectively.

Fintech firms told: Payment solutions not enough BusinessMirror 13th Feb 2020
THE Bangko Sentral ng Pilipinas (BSP) challenged financial technology start-ups working in the Philippines to go beyond providing payment solutions by focusing on the needs of those in the supply chains to boost micro, small and medium enterprises in the country. Majority of those in the financial technology space are occupied by those providing payment solutions and some in digital lending. However, the challenge for fintechs, according to Pia Bernadette Roman-Tayag, BSP managing director of Center for Learning and Inclusion Advocacy, is to can solve the connection of supply chains, providing the financial services that those supply chains need. Roman-Tayag said she also wants “transformative” solutions that are not only making current things easier but also solving real issues to make access to financial services translate to economic growth.

Officials: RTL to deliver free farm equipment this month BusinessMirror 4th Mar 2020
THE rice trade liberalization (RTL) law was able to hit its target of cutting the retail prices of the staple, but the distribution of free equipment to planters has yet to be implemented, government officials said on Wednesday. National Economic and Development Authority (Neda) Assistant Secretary Mercedita A. Sombilla noted that the average retail price of rice is now at P36 per kilogram, the lowest in six years. Retail prices fell despite the partial implementation of some provisions of the RTL law, particularly initiatives that should be bankrolled by the Rice Competitive Enhancement Fund (RCEF). Agriculture Secretary William D. Dar said the government has yet to use the RCEF to distribute equipment to planters. The Department of Agriculture (DA) has only validated the 944 farmers’ cooperatives that will benefit from the mechanization program.

Pinoy firm to expand agriculture machinery distribution philstar.com 24th Feb 2020
Local company All Certified Equipment Trading Corp. (ACETC) continues to expand its distribution of various agriculture machinery in a bid to help modernize the country’s farm sector. ACETC, the exclusive distributor of American brand Massey Ferguson farm tractors, recently opened its latest branch in Cauayan City in Isabela, bringing its total network to five branches.

BSP now allows use of agricultural free patent as collateral philstar.com 24th Feb 2020
Farmers who have continuously occupied and cultivated tracts of agricultural public land may now tap the central bank’s peso rediscounting windows to avail of funds, the Bangko Sentral ng Pilipinas (BSP) said. BSP Governor Benjamin Diokno issued Circular No. 1072 removing the restriction on agricultural free patents as collateral for rediscounting loans through amendments to the Manual of Regulations for Banks (MORB).

New SRP for basic agricultural goods takes effect CNN 24th Feb 2020
A new suggested retail price for basic agricultural commodities has taken in effect today. The Agriculture, Trade and Interior secretaries made rounds at a Quezon City market to monitor prices

Bill to make more types of agricultural loans eligible for lending quota Business World 24th Feb 2020
A senate bill is seeking to expand banks’ agricultural and fisheries lending to include other related activities to address the industry’s failure to meet its lending quotas to the sector. Senate Bill No. 1361, which will become the Rural Agricultural and Fisheries Financing System Act, sought to also create a special fund for capacity-building and other related programs.

DA sets SRP on agri, fish commodities philstar.com 22nd Feb 2020
In a bid to protect the consuming public from abnormal price increases in the market, the Department of Agriculture will start imposing a suggested retail price (SRP) scheme on selected commodities. In an administrative circular that will become effective on Feb. 24, Agriculture Secretary William Dar has set the SRP for basic agricultural and fishery commodities in Metro Manila.

Infestation threatens PH’s mango production Manila Bulletin Business 22nd Feb 2020
Infestation is threatening the country’s mango production, prompting Agriculture Secretary William Dar to order his agency to come up with a science-based solution that would ensure the commodity’s sustainable production.

S. Korea to send 950 tons of rice to Philippines in humanitarian aid Yonhap News Agency 19th Feb 2020
South Korea said Wednesday it will send 950 tons of rice as emergency aid for the victims of natural disasters in the Philippines. The rice will depart from the southern port city of Busan on Thursday and arrive in different regions in the Philippines from end-February to early March, according to the Ministry of Agriculture, Food, and Rural Affairs.

DoST plan to improve innovation ranking focused on agriculture, water Business World 17th Feb 2020
THE Department of Science and Technology (DoST) said its plan to further improve the Philippines’ global innovation ranking involves research in key agricultural sectors like coconut and livestock, as well as improving the environment for water resources. Science and Technology Secretary Fortunato T. dela Peña said at a news conference Monday that the Philippines should focus on fields of research like “alternatives to pork meat and… chicken research.” The Philippines rose 19 places in the 2019 Global Innovation Index to 54. He said research resources should also be devoted to biomedical devices, mass transportation systems, machinery design, and energy storage and conservation.

Pork production losses due to ASF to reach 1.1 million metric tons philstar.com 14th Feb 2020
The Philippines could lose 1.1 million metric tons in pork production this year due to the overall impact of the African swine fever (ASF), the head of the Philippine Veterinary Drug Association (PVDA) said. On the sidelines of the International Farmers Summit in Pasay City, PVDA president Eugene Mende told reporters the projected production loss may result if the country does not act out to prevent the further spread of the ASF. The estimated numbers translate to an 80 percent production loss in backyard farms and a 30 percent production loss in commercial farms. The Department of Agriculture (DA) earlier reported that 1.7 percent of the 12.7 million national swine population has been depopulated.

Philippines says ‘golden rice’ safe, but will farmers plant it? The Myanmar Times 13th Feb 2020
“Golden rice” is probably the world’s most hotly debated genetically modified organism, or GMO. It was intended to be a beta carotene-enriched crop to reduce Vitamin A deficiency, a health problem in very poor areas. But it has never been offered to farmers for planting.

Rabbit meat eyed as pork alternative amid ASF The Manila Times 13th Feb 2020
The Department of Agriculture (DA) on Wednesday said it is considering rabbit as an alternative to pork among backyard raisers, citing the shorter growth cycle of the animal than that of pigs affected by the outbreak of African swine fever (ASF) in the country.

PhilRice distributes pure line rice seeds for 480,000 farmers BusinessMirror 11th Feb 2020
The Philippine Rice Research Institute (PhilRice) said it has distributed at least 1.24 million bags of inbred seeds to more than 480,000 farmers planting in an estimated area of 609,000 hectares for the dry harvest season. In a news statement, PhilRice, an attached agency of the Department of Agriculture, said the seed distribution was part of the seed component of the P10-billion Rice Competitiveness Enhancement Fund (RCEF). “PhilRice commits to continue reaching out to more farmers to provide them certified seeds as an intervention to help increase yield, and reduce cost amid the implementation of rice tariffication law,” Dr. Flordeliza Bordey, PhilRice deputy executive director for special concerns, said.

Sarangani bans transport of pigs, pork products amid ASF threat BusinessMirror 11th Feb 2020
DAVAO CITY—Sarangani province locked down its eastern border against possible attempts to transport, or smuggle pigs and pork products, from the African swine fever (ASF)-infected Davao provinces, and swept through some border barangays where alleged contamination was reported. The Sarangani Communications Service said quarantine checkpoints were already installed in the town of Malungon, the main entry to Sarangani province; and General Santos City from Davao City and Davao del Sur; and in Glan, the border town with the municipality of Jose Abad Santos of Davao Occidental. All three areas of Davao region have already been infested with the ASF after the first outbreak in Don Marcelino town of Davao Occidental in the last week of January.

Duterte orders ASF zoning implementation as 2 Davao City villages placed on lockdown Business World 10th Feb 2020
President Duterte has issued the order for the implementation of the national zoning plan to contain the spread of the African Swine Fever (ASF). In Administrative order No. 22 dated February 5, he directed all national government agencies and local government units to comply with the National Zoning and Movement Plan for ASF issued earlier by the Department of Agriculture (DA).The zoning plan divides the country into two general zones: the free zone and the containment zone. The four categories under containment zone are the protected zone, the buffer zone, the surveillance zone, and the infected zone.

Rice inventory up 4.9% as NFA stocks surge Business World 10th Feb 2020
RICE held in inventory totaled 2.675 million metric tons (MT) at the start of the year, up 4.9%, driven by increased holdings by the National Food Authority (NFA), the Philippine Statistics Authority (PSA) said Monday. The PSA’s Rice and Corn Stocks Inventory report indicated that alongside the rise in NFA inventories, stocks held by commercial warehouses and households declined. Commercial warehouse inventories fell 21% to 951,630 MT at the start of the year, while rice held by households fell 3.9% to 1.198 million MT. NFA stocks rose 436.1% to 524,940 MT, amid increased funding for the agency, which was given a mandate to step up purchasing from domestic farmers after its importing function was stripped from it. Household stocks accounted for 44.8% of all inventories, while commercial stocks comprised 35.6% and NFA warehouses 19.6%.

‘Pass bill ensuring food is enough in times of crises’ BusinessMirror 10th Feb 2020
A LAWMAKER is pushing for the passage of a measure creating a commission that would ensure adequate food supply during natural calamities or crises. House Deputy Majority Leader  Rep. Camille Villar said the Commission on the Right to Adequate Food is among the main features of her House Bill 5785. The bill is pending before the House Committee on Food and Security. Under the bill, the commission will be the primary policy-making and coordinating body to guarantee the implementation and full exercise of the right to adequate food. It will be directly under the Office of the President. It will enjoy monitoring and oversight functions, apply human-rights principles, conduct objective impact assessment on all government policies, programs and projects prior to adoption and implementation, work in close cooperation with civil-society organizations, and use all available resources of the government and private bodies or organizations.

Not enough dairy animals to reach milk self sufficiency Business World 10th Feb 2020
Despite the reported increase in the number of dairy animals, this is not enough to reach the desired local milk sufficiency level, the Commission on Audit (COA) said. The number of dairy animals increased by an average of 3% annually from 39,069 in 2012 to 47,600 in CY 2018. However, these accomplishments are still below the desired projections under the Dairy Road Map (DRM). The Philippines’ DRM was designed to serve as the “blueprint of achieving the vision of a vibrant local dairy industry providing wholesome, affordable milk to delighted consumers, building a nation of healthier children and wealthier farmers, while contributing to agribusiness expansion and job generation in agriculture,” said the Department of Agriculture (DA). The number of dairy animals is 76% short of the 198,977 target, while milk production is 54% short of its 2.8% sufficiency level target.

Weak demand, high inventory cut farm-gate price of broiler BusinessMirror 9th Mar 2020
The average farm-gate price of broiler fell 5 percent to P71 per kilogram due to the coronavirus disease 2019 (COVID-19) scare and the increase in poultry meat supply, according to the United Broiler Raisers Association (Ubra). Data provided by Ubra showed that the average price of live broiler fell for the third consecutive week. The latest figure is also the lowest quotation for live broiler since the start of the year. Ubra Chairman Gregorio F. San Diego Jr. said demand for broiler meat declined as business activities were slower due to the virus scare, referring to COVID-19. The confirmation of cases in the Philippines had discouraged consumers from frequenting malls and eating out.

EDC to weigh impact of COVID-19 on other industries  BusinessMirror 9th Mar 2020
The country’s economic managers are set to meet on Tuesday to look into the potential impact of the coronavirus 2019 (COVID-19) not just on tourism but also on the construction sector. The Economic Development Cluster (EDC) meeting will be held after the Department of Health raised the COVID-19 Alert System to Code Red Sublevel 1 over the weekend after Manila confirmed its sixth case of COVID-19. Finance Secretary Carlos G. Dominguez III told reporters that although it is clear that the tourism sector will take a hit from the outbreak of the virus, the government has yet to see its impact on other industries.

PHL eyes loan as World Bank prepares $12-billion virus fund BusinessMirror 5th Mar 2020
THE World Bank has made available $12 billion worth of immediate support for countries in their response to coronavirus disease 2019 (Covid-19), a development that Manila welcomed, as it is in talks with donors for a planned loan package for the coronavirus outbreak and “similar events.” In a statement, the Washington-based lender said the fast-track financing is designed to help member-countries take effective action to respond to and, where possible, lessen the tragic impacts posed by Covid-19. The funds will be used to strengthen health systems, provide better access to health services to safeguard people from the epidemic, strengthen disease surveillance, bolster public health interventions and work with the private sector to reduce the impact on economies.

DoF mulls availing of WB loan to fund efforts vs coronavirus Business World 4th Mar 2020
THE government is considering availing a loan package from multilateral lenders to fund efforts to contain the spread of coronavirus disease 2019 (COVID-19) within the country. This, after the World Bank Group announced on Wednesday an initial $12 billion in immediate financial support for developing countries battling the disease. ”We are currently in discussions with the DoH (Department of Health) on a loan package with multilateral agencies and this announcement of the World Bank is certainly welcomed,” Finance (DoF) Secretary Carlos G. Dominguez III told reporters in a Viber message on Wednesday.

NG subsidies to govt corporations breach P200B for first time BusinessMirror 2nd Mar 2020
Subsidies extended by the national government to state-owned corporations ballooned to a record-high P201.52 billion in 2019, with the bulk going to the Philippine Health Insurance Corp. (PhilHealth), according to the Bureau of the Treasury (BTr). PhilHealth is mandated to provide health insurance coverage, and ensure accessible and affordable health-care services to Filipinos. This was also the first time that subsidies granted to government-owned and -controlled corporations (GOCCs) breached the P200-billion mark.

Industry group warns: medicine price caps unsustainable, may lead to product withdrawals CNN 28th Feb 2020
An industry group warned that President Rodrigo Duterte's new order setting price caps on medicines could lead to a pullout of essential drugs, as global manufacturers avoid selling the goods at a loss.Teodoro Padilla, executive director of the Pharmaceutical and Healthcare Association of the Philippines, said the recently-signed Executive Order 104 could do more harm than good for Filipinos needing a constant supply of medicines for their ailments. Padilla said global pharmaceutical companies need to recover the cost of developing, producing, and distributing essential medicines, which could turn them away from the Philippines given the new rule.

PHL ‘functional food’ vs COVID-19 available soon  BusinessMirror 20th Feb 2020
THE Philippines may have within a month a “functional food” that could treat the coronavirus disease 2019 (Covid-19) that has infected more than 70,000 people globally and killed over 1,700. It has also infected more than 500 patients in the Philippines. “It can be very fast. [The functional food can be available as cure] maybe in a month’s time or even less. We just have to test it against the coronavirus,” Executive Director Dr. Jaime Montoya of the Philippine Council on Health Research and Development of the Department of Science and Technology (PCHRD-DOST) told the BusinessMirror after the news conference for the Technical Meeting and High-Level Conference on Global Innovation Index at the Philippine International Convention Center on February 17. Montoya explained that a “functional food” helps a person against illnesses, just like tawa-tawa that is used against dengue, or turmeric, an anti-inflammatory and antioxidant crop. He refused to identify the possible functional food because it is yet to be tested against the Covid-19.

PHL children’s status in health, environment trails Asean neighbors BusinessMirror 20th Feb 2020
NOT all children in the Philippines are flourishing in terms of health, their environment and futures, according to a landmark report released by the World Health Organization (WHO), Unicef and The Lancet. In the global index of the report, titled “A Future for the World’s Children?” the Philippines ranked 110th out of 180 countries with a “flourishing” score of 0.56. This almost made the country a laggard in the Asean-5. Singapore ranked the highest in the group at 12th overall with a score of 0.92; Malaysia, 44th with 0.81; Vietnam, 58th with 0.75; and Thailand, 64th with 0.75. Indonesia lagged in the group by ranking 117th with a score of 0.54.

COVID-infected Pinoys on cruise ship now at 27 BusinessMirror 18th Feb 2020
The number of Filipinos onboard the cruise ship Diamond Princess who have tested positive for coronavirus disease 2019 (Covid-19) is at 27, including 16 new cases confirmed on Saturday, February 15. The Department of Foreign Affairs (DFA) reported this on Monday, as relayed by the Embassy in Tokyo. However, the DFA added that no Filipinos are included in the new group of 70 confirmed cases as announced by the Japanese government on February 16.  “The Japanese Health Ministry announced that all crew and passengers onboard will be tested beginning February 17, so that test results will be available by the time the ship’s quarantine period ends,” the DFA said.

Covid-19 prompts bet on low-risk govt papers BusinessMirror 18th Feb 2020
INVESTORS are parking their funds in low-risk government securities amid uncertainties posed by coronavirus disease 2019 (Covid-19.) The Bureau of the Treasury’s (BTr) Auction Committee on Monday fully awarded bids for the Treasury bills (T-bills) worth P20 billion on offer amid strong market demand. The auction was nearly four times oversubscribed with total bids reaching P78.3 billion compared to the P20-billion offering. All securities also fetched lower average auction rates than the previous auction and secondary market rates. National Treasurer Rosalia V. de Leon told reporters they were “pleased” with the auction results.

Sarangani’s ASF checkpoints to do COVID-19 monitoring, too BusinessMirror 18th Feb 2020
DAVAO CITY—African swine fever (ASF) checkpoints in Sarangani province will also serve as monitoring posts for the coronavirus disease 2019 (COVID-19) as a precautionary measure to prevent the spread of the virus. Sarangani Gov. Steve Chiongbian Solon issued the directive last week as other local governments began canceling their scheduled events over the threat of COVID-19. Solon has also directed capitol employees to wear face masks if they have a cough and to go on leave if they have fever. Dr. Alvin Alejandro, provincial health officer, has asked travelers to cooperate if they would be asked about their travel histories and to also present their identification cards and passports.

Former PhilHealth acting president named DOH exec philstar.com 17th Feb 2020
A former acting president of the Philippine Health Insurance Corp. who resigned while the office was grappling with a controversy has been named health assistant secretary. Former PhilHealth acting president Roy Ferrer was appointed assistant health secretary last Feb. 6, a list of appointees released by Malacañang on Monday showed. Last June, President Duterte asked Ferrer and PhilHealth board members to resign following allegations that some officials allowed payments to a wellness and dialysis center that had filed claims on behalf of its dead patients. Duterte, however, has declared that he does not have the slightest doubt about the integrity and honesty of Ferrer. 

EO imposes price cap on 133 medicines Business World 17th Feb 2020
PRESIDENT Rodrigo R. Duterte on Monday signed the executive order (EO) placing cap on the retail prices of 133 medicines, including those for hypertension, diabetes, cardiovascular disease and some types of cancer. EO No. 104 sets a maximum retail price (MRP) and maximum wholesale price (MWP) for certain drugs, particularly those that “address the health priorities of the general public, especially those that account for the leading causes of morbidity and mortality.” Also included in the list are drugs that have high price differentials compared to international prices; have limited competition in terms of lack of generic counterparts; and where the innovator product is the most expensive, yet most prescribed one in the market.

‘Virus may cost 95,000 jobs in tourism sector’ BusinessMirror 13th Feb 2020
The new coronavirus (COVID-19) could cause the tourism sector to lose as much as P22.7 billion a month and shed 95,000 jobs, the National Economic and Development Authority (Neda) told lawmakers in a hearing on Wednesday. Neda Undersecretary Rosemarie G. Edillon said the reduction in tourist arrivals due to travel bans would result in the loss of 30,000 to 95,000 jobs. Despite the problems created by COVID-19, however, Socioeconomic Planning Secretary Ernesto M. Pernia told reporters the country’s economy still has a “fighting chance” to expand by around 6 percent in the first quarter. “With respect to international estimates, they also forecast that the Philippines, which is not that dependent on tourism and also not that dependent on external trade, will be in some ways insulated,” Edillon said at the House hearing.

2020 census of population, housing kicks off May 4 Philippine Information Agency 10th Feb 2020
The Philippine Statistics Authority (PSA) will begin the official census count of the country’s population and housing on May 4, 2020. All persons, including those alive as of 12:01 A.M. of May 1, 2020, will be enumerated and counted during the CPH which involves the entire process of collecting, compiling, evaluating, analyzing, publishing and disseminating data about the population and living quarters in the country.

Fort Magsaysay will be virus quarantine site BusinessMirror 6th Feb 2020
GOVERNMENT preparations are now under way to convert the drug rehabilitation center in Fort Magsaysay in Nueva Ecija into a quarantine facility for Filipinos coming from countries with confirmed cases of 2019-novel coronavirus (2019-nCoV). Presidential spokesman Salvador S. Panelo said Health Secretary Francisco Duque III made the confirmation during the 46th Cabinet meeting on Tuesday evening at the Palace. “Secretary Duque reported that they are now preparing Fort Magsaysay in Nueva Ecija as a quarantine area, which can accommodate 10,000 individuals,” Panelo said.

EO on drug price caps signed; pharma to comply philstar.com 18th Feb 2020
President Duterte has signed an executive order imposing price caps on medicines for hypertension, cancer, diabetes and other diseases as part of the effort to improve the public’s access to health care.  In signing EO 104 yesterday, Duterte noted that expensive healthcare, including costly medicines, “pushes a significant number of Filipinos to poverty” and “discourages them from seeking appropriate medical treatment.” The new EO regulates the prices of more than 130 drug formulas. Medicines covered by the price caps include antihypertensives, antidiabetic drugs, anti-cancer drugs, analgesics, substances for chronic obstructive pulmonary disease, anticoagulant, gents affecting bone metabolism, substances for psoriasis, seborrhea and ichthyosis, growth hormone inhibitor, antidepressants, antiviral and mucolytic. 

Internet-enabled shoppers account for 75% of FMCG sales — Kantar Business World 2nd Mar 2020
SHOPPERS with Internet access are the leading buyers of fast-moving consumer goods (FMCG) by a wide margin, data analytics firm Kantar said. It cited the findings of its Digital Shoppers for Brand Growth study, which covers the January 2016 to June 2019 period. The FMCG segment includes packaged food and beverages, toiletries and other consumables. The study sample was 3,000 households. It defined digital shoppers as those that have access to the internet.

Philippines telco PLDT bolsters staff skills for 5G future Tech Wire Asia 25th Feb 2020
Philippines telecommunications operator PLDT Inc, for one, has decided that the best strategy is to ramp up its network transformation initiatives and enhance the skills of its workforce through training programs. The network operator has recently inked a US$1-million grant agreement with the US Trade and Development Agency (USTDA) in a bid to speed up its transformation initiatives and fortify its digital footprints. PLDT believes training and development will help the company achieve its goals. According to PLDT Chief Executive Officer Manuel V. Pangilinan, “This investment will equip our people with the skills and knowledge needed to transform PLDT as an organization as we march towards the 5G-powered future.”

Gordon prods government to marshall cyber warriors  BusinessMirror 20th Feb 2020
SEN. Richard Gordon has prodded the Duterte administration to be ready to deploy its own cyber warriors who are ready to effectively counter “possible malicious cyber attacks.” Taking the floor at Tuesday night’s plenary session, Gordon stressed the need “for the country to have its own cyber experts” to promptly carry out counter measures in case of cyber attacks in the future. Gordon lamented that the government “lacks preparations and plans in terms of cyber warfare, and that the country is behind other nations when it comes to being visionary.”

Unlocking the power of data BusinessMirror 11th Feb 2020
Data has become the new life force that drives the world today. Businesses have always leveraged their company, or customers information, to make better, smarter, real-time, fact-based decisions—from developing a new product, moving into a new market or business field, to simply redefining an old process. New technologies, an increasing number of connected devices, combined with better data collection tools and processes, are leading to an exponential increase in the volume and types of data available. Researchers around the world are in broad agreement that the size of the digital universe will double every two years, at least, resulting in a 50-fold growth in this decade. Machine data is growing even more rapidly, at 50 times the growth rate. The data revolution is creating unprecedented possibilities, not only for businesses, but also for governments and the public sector to inform, and transform, the society, while driving positive social impact outcomes.

Ibpap lists growth sectors in next three years  BusinessMirror 11th Feb 2020
Health-care management and animation are projected to grow double digits until 2022, making them the growth drivers of the information-technology and business-process management (IT-BPM) over the next three years. In news statement on Monday, the IT and Business Process Association of the Philippines (Ibpap) disclosed its new growth figures for various sectors in line with the industry’s revision of targets last year. Under the recalibrated numbers, health-care management, as well as animation and game development, posted the most potential both in revenue and labor force. In terms of revenue, animation and game development is expected to grow from 7.3 percent to 12.3 percent until 2022, while health-care information management is projected to accelerate to as high as 10.3 percent.

PHL eyed as fintech start-ups’ hub BusinessMirror 11th Feb 2020
THE government is eyeing to turn the Philippines into an incubation hub for financial technology (fintech) start-ups, as the country tries to catch up with its regional neighbors on innovation and new solutions. At the media launch of the Philippine Fintech Festival 2020 on Monday, Trade Undersecretary Rafaelita M. Aldaba said it is important for the country to implement its industrial policy to be able to catch up with regional neighbors. She said the inclusion of start-ups will ensure the Philippines can cushion the impact of the Fourth Industrial Revolution and the trade war. “With more than 500 start-ups valued at $378 million, the Philippine start-up ecosystem is young but full of potential and embedded capabilities,” Aldaba said in a speech. “Fintech is growing steadily in the Philippines. Our start-up database shows 136 fintech companies, which make up 26 percent of the country’s total start-ups,” she added.

D.I.C.T. says confidential fund use above board  BusinessMirror 6th Feb 2020
THE Department of Information and Communications Technology (DICT) has clarified that its use of the P300-million confidential funds in 2019 was above board. In a statement, the ICT department said that the funds were used to “aid” law-enforcement agencies in “protecting” Philippine cyberspace from cyber criminals. “A key component of cyber security is information gathering on our ICT systems, and aiding the government agencies involved in law enforcement, and the defense of our nation and its people. Strategies for cybercrime and cybersecurity incident prevention are needed, together with the proper use of cyber tools, to protect our public safety and our nation’s security,” it said.

Philippines eyes Indonesian tourists in efforts to boost foreign visits The Jakarta Post 24th Feb 2020
The Philippines has set its sights on Indonesian travelers as part of the country’s efforts to increase its foreign tourist arrivals this year. Despite the two countries’ geographical proximity, which can be covered by a four-hour flight, the number of Indonesian tourists visiting the Philippines remains relatively low compared to that of other countries such as China, South Korea, the United States and other ASEAN countries, according to the Philippines’ Department of Tourism. Indonesia ranked 14th in the Philippines’ foreign tourist visits, with 70,819 Indonesians visiting the Southeast Asian neighbor in 2019.

DPWH studies bid to link Nlex to Cavitex  BusinessMirror 2nd Mar 2020
THE Department of Public Works and Highways (DPWH) is now evaluating the roughly P100-billion unsolicited proposal of Nlex Corp. aimed at connecting the North Luzon Expressway and Manila-Cavite Expressway (Cavitex). Without disclosing target timelines, Public Works Secretary Mark A. Villar said: “It’s still being evaluated and we are asking them for additional documents.” Nlex Corp. first submitted the unsolicited offer, called Port Link Expressway, to the public works department in 2018.

QC, DOTr should resolve MRT 7 issues–SMC  BusinessMirror 20th Feb 2020
SAN Miguel Corp. (SMC) is hopeful that the design issues of a Manila Metro Rail Transit  System (MRT) 7 station in Quezon City will soon be resolved, noting that it is open to revising the design of the station to ensure faster implementation of the project. Ramon S. Ang, the company’s COO, said his group urged the Department of  Transportation (DOTr), as well as the local government of Quezon City to quickly resolve the design issue to ensure no major setbacks in the construction of the railway facility.

Flagship project costing upgraded to P4.4 trillion Business World 17th Feb 2020
COST estimates for the government’s flagship infrastructure projects have been upgraded to P4.4 trillion from P4.2 trillion previously, with more works being considered for inclusion in the list of about 100 projects. “There have been adjustments… this figure is now up to about P4.4 trillion,” Vivencio B. Dizon, the presidential adviser for flagship infrastructure projects, told a House of Representatives committee Monday. Mr. Dizon said the additional P200 billion arose from revised costings for some projects, with the biggest portion coming from adjusted estimates for the Panay-Guimaras-Negros Island Bridges project, as approved by the National Economic and Development Authority’s (NEDA). According to Mr. Dizon, several projects are also being reviewed for inclusion in the “evolving” flagship list. A copy of the updated list with revised costing has yet to be made available to the media.

Construction to start soon on Harbor Link extension philstar.com 14th Feb 2020
Metro Pacific Tollways Corp. (MPTC) plans to commence construction of a P16-billion elevated expressway extension of the Harbor Link this year, saying that the government has indicated its support to the project. “We’re hoping as early as this year we can start working on that,” MPTC president and chief executive officer Rodrigo Franco said, referring to the company’s planned Harbor Link Port Access Mobility Facility project. The project aims to improve access to the port area in Manila as it would continue the Harbor Link from C3 corner Navotas interchange all the way to Anda Circle.

Duterte not open to new water contract negotiation Business World 10th Feb 2020
President Duterte has reiterated that he is not open to negotiations over the revised deals that will be offered to Metro Manila’s two water concessionaires unless they pay consumers back the money collected based on the previous “onerous contracts.” In early January, the President said he is offering new contracts to Manila Water Co., Inc. and Maynilad Water Services, Inc., with a warning that he will pursue charges against the two companies should they reject the terms and conditions. The Department of Justice has been tasked to draft the new contract, which is expected to be finalized within six months. Mr. Duterte has accused the water concessionaires of “economic sabotage” after Manila Water disclosed on Nov. 29 last year that it won P7.39 billion in an arbitration case with the government brought before an international tribunal. Maynilad won a similar case in July 24, 2017, with an award of P3.42 billion. Both companies, however, have said during congressional hearings late last year that they no longer intend to collect the amount.

PPA-run ticketing system for ship passengers to discourage overbooking Business World 10th Feb 2020
THE Philippine Ports Authority (PPA) will pilot-test within the first half of the year a centralized online ticketing system which hopes to deter overbooking by shipping lines, improving safety in the industry. The online booking system, which will provide ticketing for roll-on/roll-off passenger ships, will be managed by the PPA. Shipping lines have their own online ticketing systems to process advance booking of tickets but they tend to overbook, according to the PPA. “By the first half of 2020, the PPA will pilot-test a centralized e-ticketing system to avoid overloading and overbooking on sea vessels,” the Department of Transportation (DoTr) said in its 2019 annual report. In a copy of the Administrative Order (AO) No. 12 series of 2019 provided by the PPA to BusinessWorld on Monday, it said that one of the objectives of the centralized e-ticketing system is “to institute port process improvement for maritime safety and security since this will provide a useful instrument for preventing ship overloading and overcrowding.”

The Philippines: A Good Time to Expand the Infrastructure Push IMF 6th Feb 2020
Infrastructure improvements will be crucial in the Philippines as the country looks to become an upper middle-income country and reduce poverty rates from 16.6 percent in 2018 to 14 percent by 2022. Structural economic reforms, along with sound macroeconomic policies, helped the Philippine economy to grow, on average, by 6.3 percent annually over the last decade. But sustaining and sharing the benefits of this growth among its citizens will require policymakers to focus their attention on issues such as costly geographical barriers to trade, high levels of poverty and income disparities, the rise of new digital technologies, and climate change

DoF scrambles to save CITIRA with Senate determined to pass Covid-19 measures Business World 4th Mar 2020
THE Department of Finance (DoF) has once more asked the Senate to prioritize the Corporate Income Tax and Incentives Reform Act (CITIRA) bill just before Congress goes on a seven-week break, to attract more companies seeking a landing spot after exiting China. The Senate leadership last week signalled that the tax measures will likely take a back seat as the chamber is expecting to prioritize measures that will help contain the spread of coronavirus disease 2019 (Covid-19).

Tax bills may take backseat amid coronavirus spread Business World 2nd Mar 2020
THE remaining packages of President Rodrigo R. Duterte’s comprehensive tax reform program (CTRP) might take a backseat in the Senate as the chamber gets sidetracked by measures seeking to shield the economy from a novel coronavirus outbreak, its leaders said. “If the situation worsens, we won’t be acting on it,” Senate President Vicente C. Sotto III said in Filipino during a briefing at the weekend. He added that lawmakers might have to prioritize measures needed to contain a coronavirus disease 2019 (COVID-19) outbreak. The ways and means committee last month endorsed for Senate plenary debates the proposed Corporate Income Tax and Incentives Reform Act (CITIRA), which will gradually cut the tax on companies to 20% by 2029 from 30% now.

Senate okays updated anti-terrorism law BusinessMirror 21st Feb 2020
Senators approved on second reading last Wednesday an updated anti-terrorism law adhering to regional and international standards. Principally authored by Sen. Panfilo M. Lacson, Senate Bill (SB) 1083 was crafted to provide “a clear, concise, balanced and rational anti-terrorism law” that adheres to regional and international standards. The bill, to be known as the Anti-Terrorism Act of 2020 once enacted into law, included a new section on foreign terrorist fighters to cover Filipino nationals who commit terrorist offenses abroad. Its enactment will effectively repeal the existing Human Security Act of 2007. The remedial legislation in SB 1083 introduced provisions penalizing those who will propose, incite, conspire, participate in the planning, training, preparation and facilitation of a terrorist act; as well as those who will provide material support to terrorists, and recruit members in a terrorist organization.

House ready to talk Citira with Senate BusinessMirror 20th Feb 2020
THE House of Representatives is now open to accepting the Senate’s version of the proposed Corporate Income Tax and Incentives Rationalization Act (Citira) for as long as it is “fiscally reasonable.” House Committee on Ways and Means Chairman Joey Sarte Salceda on Wednesday made an aide memoire addressed to the leadership of the lower chamber as the Senate started its plenary deliberations on the Citira bill. “The interest of the House was speed, and many analysts claim that speed is now the paramount consideration in Citira. In the interest of a speedy passage of Citira, the House may accept a Senate version of Citira that is fiscally acceptable, to avoid the uncertainty and policy distortions that a bicameral conference can sometimes cause, and to end the long and repetitive discussions once and for all,”

Senate body approves CITIRA bill Business World 19th Feb 2020
A SENATE COMMITTEE on Wednesday approved a priority bill of President Rodrigo R. Duterte that seeks to lower corporate income tax and streamline fiscal incentives. The Ways and Means committee endorsed the proposed Corporate Income Tax and Incentives Reform Act (CITIRA), which will gradually cut the tax on companies to 20% by 2029 from the current 30%, for Senate plenary debates. Senator Pia S. Cayetano, who heads the committee, said there’s a “very good chance” the Senate would approve the bill on final reading by March 13, before Congress goes on a Holy Week break. Senate Bill 1357 (SB 1357) also seeks to gradually lower the income tax on resident and non-resident foreign corporations to 20% by 2029.

Credit rating upgrade will allow PHL to spend on ‘suprastructure’—Neda BusinessMirror 10th Feb 2020
Credit rating upgrades will allow the country to invest more in research and development (R&D) to boost its competitiveness, according to the National Economic and Development Authority (Neda). In the recently signed implementing rules and regulations (IRR) of the Innovation Act, the Neda said the government will set up a revolving fund of P1 billion to bankroll interventions prescribed by the law. Socioeconomic Planning Secretary Ernesto M. Pernia said making these investments is possible through credit rating upgrades that the country receives, including Rating and Investment Information Inc.’s recent upgrade for the Philippines. Tokyo-based R&I upgraded the country’s credit rating to “BBB+” with a stable outlook, from “BBB.” “The credit rating upgrade for the Philippines by R&I will enhance the country’s investment climate and creditworthiness. Wider fiscal space enables the country not only to spend more on infrastructure but also invest in ‘suprastructure’—quality education, and Science and Technology Innovation ecosystem required for the Philippines to become a globally competitive knowledge economy,” Pernia said. The IRR of the Innovation Act provides that the Innovation fund should be continuously funded through replenishments or the annual General Appropriations Act to ensure that innovators would be able to tap funds for various projects.

PH Innovation Act IRR signed Philippine News Agency 7th Feb 2020
Officials from the National Economic and Development Authority (NEDA), the Department of Trade and Industry (DTI), and the Department of Science and Technology (DOST) signed the implementing rules and regulations (IRR) of the Philippine Innovation Act (RA 11293). The Act, which was signed into law in July 2019, would harness innovation efforts to help the poor and the marginalized, and enable micro, small and medium enterprises (MSMEs) to be part of the domestic and global supply chain. The salient features of the IRR are the following: Promote a culture of strategies, planning to encourage creative thinking and monitoring economic competitiveness; ensure effective coordination of innovation policies and programs; strengthen the position of MSMEs in the innovation ecosystem; suppressing bureaucratic hurdles; encourage entrepreneurial attitude; strengthen partnerships between the public and private sectors, academe, MSMEs and research and development institutes.

D.O.F. bullish on CTRP packages’ passage BusinessMirror 6th Feb 2020
THE Department of Finance (DOF) remains bullish on the prospects of passing the remaining packages under the Comprehensive Tax Reform Program (CTRP) within the year as these gain headway in the Senate. Finance Undersecretary Karl Kendrick T. Chua expressed confidence that all the CTRP packages would be passed within DOF’s target of first 15 to 18 months of the 18th Congress. “I think so. I think we are progressing well in the Senate for the last three packages,” Chua said following the first Senate committee hearing on Package 4 or the Passive Income and Financial Intermediary Taxation Act (Pifita). Senate Ways and Means Committee Chairman Pia S. Cayetano also said in an interview that they are already finalizing the committee report on Package 2 or Corporate Income Tax and Incentives Rationalization Act (Citira).

PHL loses first try to get WTO to punish Thailand BusinessMirror 2nd Mar 2020
THE Philippines has failed to secure the World Trade Organization’s (WTO) approval to suspend concessions on $594 million of Thai imports as a retaliation for Thailand’s noncompliance with the ruling on their cigarette dispute. According to documents obtained by the BusinessMirror, the Philippines failed in its first try to move against Thailand after the Dispute Settlement Body  called off its Friday meeting. The DSB meeting was suspended to give the two Southeast Asian nations more time to talk on the next step for their cigarette dispute.

PH’s manufacturing score hits 13-month high in February Philippine News Agency 2nd Mar 2020
The country’s manufacturing purchasing managers’ index (PMI) reached its 13-month high in February at 52.3, supported by resilient demands both domestically and abroad, the IHS Markit reported Monday. Manufacturing PMI in February was higher than the 52.1 score in January this year. IHS Markit also recorded growth in new orders, exports, and hiring in the previous month. Among its Asean neighbors included in the IHS Markit survey, the Philippines’ manufacturing PMI is the highest in February compared to Indonesia’s score of 51.9, and Vietnam’s index of 50.

Honda will shut down its Philippine production facility Autoblog 23rd Feb 2020
The Philippine unit of Honda said on Saturday its production facility will shut down next month, as the Japanese automaker struggles to shore up global automobile operations. Japan's third-largest automaker has seen its profitability decline by more than half in the past two years, led by a series of quality-related issues. Honda Cars Philippines said its production plant south of the capital Manila will cease operations next month. But automobile sales and after-sales services will continue through Honda's regional network. Honda Philippines' manufacturing plant, which has 650 employees and associates, started operations in 1992. It makes BR-V and City passenger cars catering to local demand.

Auto sales fall as Taal eruption disrupts operations Business World 19th Feb 2020
AUTOMOTIVE SALES dropped by 12% in January after manufacturing plants and dealerships in Calabarzon (Cavite-Laguna-Batangas-Rizal-Quezon) temporarily halted operations due to the eruption of Taal Volcano, the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) reported on Wednesday. The joint CAMPI-TMA sales report showed vehicle sales fell 11.8% to 23,723 units in January from 26,888 units sold in the same month last year, as sales of light commercial vehicles and passenger cars slipped.

PHL factories churned out fewer goods in 2019 BusinessMirror 6th Feb 2020
THE volume of products churned out by factories last year contracted by an annualized rate of 8.6 percent, according to the Monthly Integrated Survey of Selected Industries (MISSI) released by the Philippine Statistics Authority (PSA) on Wednesday. Data from the PSA also showed that in December alone, the Volume of Production Index declined by 10.1 percent year-on-year, the third worse level recorded in 2019. The VoPI has been contracting since December 2018, when it fell by an annualized rate of 9.3 percent. Last year, the largest annual declines for the VoPI were recorded in April at 14 percent and August at 12.4 percent. PSA data indicated that the Value of Production Index (VaPI) dropped by an annualized rate of 7.1 percent. In December alone, it contracted by 9.5 percent  year-on-year. In terms of the Value of Net Sales Index, PSA figures revealed that it contracted by an annualized 1.1 percent, a reversal from the 10.2 percent recorded in 2018.

Newsnet case sparks NTC-Arta word war BusinessMirror 18th Feb 2020
The National Telecommunications Commission (NTC) has sought the intervention of the Department of Justice (DOJ) over a spat with the Anti-Red Tape Authority (Arta), which earlier called out the telco regulator for supposedly violating provisions of the Ease of Doing Business and Efficient Government Service Delivery Act of 2018. The NTC retaliated against Arta, saying that its intervention—instructing the regulator to issue a certificate of public convenience to News and Entertainment Network Corp. (Newsnet)—was “unnecessary” as it had no jurisdiction over the NTC's its quasi-judicial functions.

Duterte issues EO imposing price caps on 133 drug formulas; PHAP appeals BusinessMirror 18th Feb 2020
President Duterte on Mondayissued a new order imposing a price cap on 133 price drug formulas to make it affordable to more people.  Executive Order (EO) No. 104 mandated the implementation for a Maximum Retail Price (MRP) and/or Maximum Wholesale Price (MWP) 86 drug molecules or 133 drug formulas upon the recommendation of the Department of Health. The drugs covered by the EO include: drugs for illnesses that are the leading cause of morbidity and mortality; drugs have a high price differential compared to international prices; those that lack generic counterparts or lack market access; and those considered as innovator products but the most prescribed and/or dispensed in the market. It covered drugs with varying prices including cheap anti hypertensives with an MWP of P8.16 and a expensive growth hormone inhibitor, which has a MWP of P48,457.96 per vial. The list of MWPs and MRPs also covers common anti-cancer drugs, immunosuppressants, analgesics, antiasthmatic, and anti depressants among others.

Senate panel wants online gaming halt over tax issues Business World 11th Feb 2020
A senate panel recommended the suspension of the Philippine Offshore Gaming Operators (POGOs) after learning foregone revenues in 2019 hit an estimated P50 billion. The Bureau of Internal Revenue (BIR) in a hearing at the Senate Committee on Labor, Employment and Human Resources Development said some P50 billion is lost for POGOs’ failure to pay corporate tax, and franchise tax among others. All 50 foreign-based POGO firms have failed to remit the 5% franchise tax. The Philippine Amusement and Gaming Corp. (Pagcor) explained it has no regulatory power to over the franchise tax, but said it will conduct an investigation at the recommendation of the BIR. The panel also found the inconsistent data reported by concerned agencies prove it is not prepared to regulate the industry just yet.

Bill seeks more comprehensive control of drug, medical equipment prices Business World 10th Feb 2020
Albay Rep. Jose Maria Clemente S. Salceda, who also heads the House ways and means committee, filed House Bill 6219 on Thursday, which, if passed, will be known as the Affordable Medicines, Medical Equipment and Supplies Act (AMMESA). Under House Bill 6219, the Secretary of Health will be able to negotiate the prices of all medicines, including medically necessary assistive equipment and medical supplies purchased by the government. This will compel companies to price these products lower if they want to sell medicine in the Philippines, since the government will be a single-payer system under Universal Health Care. The bill also urges the Philippine National Drug Formulary to encourage the use of generics whenever possible.

How unique lending platforms boost small businesses in Southeast Asia e27 25th Feb 2020
In a joint report released recently by the International Finance Corporation (IFC) and SME Finance Forum, it was found that the global funding gap for small, medium and micro businesses amounted to US$5.2 trillion per year, with the East Asia and Pacific region representing 58 per cent of the global demand. While the region has seen exponential growth over the past few decades, financial inclusion remains limited – with only 33 per cent of businesses having access to proper financing. Several companies are stepping up to the plate with initiatives to educate and inform young entrepreneurs and SMEs while at the same time investing in flexible and lively cloud data storage strategies in order to provide more personalized services to these business owners.

Asian tourism capitals sweat over Chinese travel drought Nikkei Asian Review 13th Feb 2020
Popular Asian travel destinations face the risk of a prolonged decline in visitors from China, a group that generates around 20% of global tourism spending, as the coronavirus disrupts travel and shows signs of stoking anti-Chinese sentiment. The Philippines on Feb. 2 widened a travel ban covering visitors from Hubei Province to all foreign travelers from China, including Hong Kong and Macao. Singapore has banned the entry of foreigners who traveled to China within the previous 14 days. It expects visitor arrivals to decline 25% to 30% this year, with a roughly $5 billion loss in tourism receipts. Thailand saw a nearly 60% drop in Chinese visitors for the last week of January estimating economic losses at 9.15 billion baht ($294 million) between Jan. 24 and 31. Vietnam's tourism industry could lose up to $7.7 billion in the first three months of 2020 due to cancellations of Chinese tours and a general downturn in domestic travelers and international arrivals. Malaysian tourism faces a loss of over 400 million ringgit ($96.7 million) for February and March alone, as 5,000 tour groups from China have scrapped their trips.

Philippines to spend P6 billion to boost tourism amid novel coronavirus Rappler 10th Mar 2020
The Department of Tourism (DOT) will be spending some P6 billion to boost thetourism industry, which is heavily hit by the global spread of the novel coronavirus. Tourism Secretary Bernadette Romulo Puyat said the DOT's tourism resiliency program will focus on promoting domestic destinations and on assuring the public that it is safe to travel in the Philippines. The money for the program will come from a pooled fund from various agencies. The Philippines stands to lose at least P42.9 billion in tourism revenues due to the threat of the novel coronavirus.

Tourism industry ‘bleeding’ from Covid-19 BusinessMirror 5th Mar 2020
“WE’RE bleeding.” Thus was the lament of Tourism Congress of the Philippines President Jose C. Clemente III in a press briefing Wednesday, as he described the impact of the ongoing coronavirus disease (Covid-19) outbreak on the country’s tourism industry. Many tourism stakeholders, such as hotels and resorts, have already asked some of their staff to take their forced leaves while guests were still minimal, due to the travel bans on China, Hong Kong and Macau. Unfortunately, he noted, “the markets we thought would hold out [like Europe and North America] are also canceling their visits [to the Philippines].” Tourism Secretary Bernadette Romulo Puyat, for her part, said the raw data they received from the Bureau of Immigration showed a 41.4-percent drop in foreign arrivals in February, compared to February 2019. January 2020 still posted an 9.8-percent increase in foreign arrivals, however.

DoT maps counter-virus measures Business World 4th Mar 2020
THE Department of Tourism (DoT) is allocating P6 billion to help the domestic tourism industry weather the fallout from the coronavirus disease 2019 (COVID-19) outbreak. This as international tourist arrivals to the country slumped by 42% in February, Tourism Secretary Bernadette Romulo-Puyat said on Wednesday. At a press conference, she said the government is rolling out several initiatives to promote domestic tourism to make up for the loss of foreign travelers. “To strengthen this public-private partnership initiative, we have the tourism resiliency program. The DoT will be allocating P6 billion that will span international and domestic promotions, infrastructure, and regional tourism development,” Ms. Romulo-Puyat said.

No letup in DOT intl marketing efforts despite COVID-19 concerns BusinessMirror 2nd Mar 2020
Unfazed by the cut in major tourism activities owing to coronavirus disease (Covid-19) concerns, the Department of Tourism (DOT) will continue to promote the Philippines abroad. The DOT just launched a new ad where culture buffs around the world can learn the ABCs of Philippine culture. In just a minute, the ABaKaDa music video is able to talk about 20 unique cultural facts about the Philippines represented by each letter of the Philippine alphabet. It starts with “A” for abaca accessories that many can admire for its beauty and sustainability, then “Ba” is for barefoot bounding while dancing the Tinikling. “Ka” is for Kinetic kali combat, showing the country’s national martial arts, and so on.

Philippines sees 300,000 drop in travellers The Star Online 20th Feb 2020
The Philippines recorded a drop of more than 300,000 international and local passengers following the novel coronavirus (Covid-19) outbreak that prompted countries to impose travel restrictions. From Jan 25 to Feb 17, some 1,352,692 foreigners flew into the country, down by 272,006 from the 1,624,698 international travellers recorded in the same period last year, Manila International Airport Authority (MIAA) general manager Eddie Monreal said on Wednesday. Domestic travellers, on the other hand, reached 1,406,876, down by 49,829 from 1,456,705 in the same period last year, he said in a press briefing in Malacañang. The number of flights also saw a 22-per cent drop.

Philippines rolls out tourism push to make up for lost Chinese visitors South China Morning Post 18th Feb 2020
The Philippines is gearing up to slash hotel and airline rates, hold sales in major shopping centres and heavily market its tourism sector – except to visitors from mainland China, Hong Kong and Macau, whose residents are currently barred from entering. “What we have to tell our tourists [is] it’s safe to come to our country. No local transmission and the hotels and restaurants are ready,” tourism secretary Bernadette Romulo-Puyat said on Tuesday. To compensate, she said the country’s tourism promotion campaigns would focus on South Korea, the United States, Australia, Japan and Europe.

International tourist arrivals hit 8.26 million Business World 17th Feb 2020
INTERNATIONAL tourist arrivals reached 8.26 million in 2019, exceeding its 8.2 million full-year target, the Department of Tourism (DoT) reported on Monday. However, industry stakeholders are bracing themselves for a decline in international tourist arrivals this year as many have canceled or are putting off travel due to fears over the continued spread of the pneumonia-like coronavirus disease 2019 (Covid-19). In a statement, the DoT said the annual tourist arrivals figure was 15.24% higher than the previous year’s 7.17 million. “Almost all months, except January, registered double-digit growth rates, the largest of which was August at 27.54%, while December recorded the highest volume at 776,798,’’ the DoT said in a statement on Monday.

Philippines meets target 8 million foreign tourists in 2019 ABS-CBN News 17th Feb 2020
The Philippines hosted 8 million foreign tourists in 2019, exceeding its target on the first year of its refreshed campaign that focuses on sustainability, the tourism department said Monday. The total 8.26 million tourist arrivals was above the 8.2 million target and was 15.2 percent higher from the previous year, the Department of Tourism said.

Tourism losses seen to hit P70 billion as nCoV lingers philstar.com 12th Feb 2020
The tourism industry could lose as much as P70 billion if the temporary travel ban from China due to the novel coronavirus(nCoV) drags on for six months, an industry group said. If the impact of the travel ban lags until the end of the first quarter, this would result in P20 billion losses for the Chinese market alone. China remains the country’s largest source market of foreign arrivals, registering a total of 1.6 million arrivals from January to November 2019. President Duterte imposed a temporary travel ban from China and its special administrative regions of Hong Kong and Macau in a bid to contain the spread of the nCoV. Based on data from the Department of Tourism(DOT), expected foregone revenue from tourists from China, Hong Kong and Macau for February amounts to P14.8 billion. For March, this is expected to amount to P12.8 billion.

U.S. embassy in PH denies suspending visa applications Rappler 10th Feb 2020
The United States embassy in the Philippines denied reports it was supposedly suspending visa applications due to the spread of the 2019 novel coronavirus and President Rodrigo Duterte's threats to terminate the two countries' Visiting Forces Agreement (VFA). The US embassy responded to posts circulating online which claimed the US government ordered its post in Manila to "cancel/revoke all current and existing B1 and B2 visas" starting February 15. The post, which was shared by a fake US embassy in the Philippines account, said the suspension and revocation of visas was due to the threat of the coronavirus and Duterte's decision to abrogate the VFA – the Philippines' long-standing military pact with the US. The US embassy advised the public to refer only to its official website and social media accounts as the best sources of accurate information. It encouraged the public to report visa and passport fraud via email to the following: FPMManila@state.gov.

Accor Group expanding network with 15 more hotels in the PHL BusinessMirror 21st Feb 2020
WORLDWIDE hospitality group Accor will be expanding its network in the Philippines, bringing it to 23 hotels by 2025.

2019 International arrivals exceed target with 8.26M visitors to PH Philippine Information Agency 17th Feb 2020
MANILA, Feb. 17 -- The year 2019 is deemed celebratory for Philippine tourism as international visitors numbering 8.26 million, exceeded the 8.2 million annual target set in the National Tourism Development Plan (NTDP) for 2016-2022. The DOT year-end visitor arrival report cited a 15.24 percent growth over 2018’s year-end figure of 7.16 million. Almost all months, except January, registered double digit growth rates, the largest of which was August at 27.54 percent while December recorded the highest volume at 776,798.

PHL tourism to lose P23 billion a month due to COVID-19 Business World 12th Feb 2020
THE tourism industry alone could lose P22.7 billion in revenues per month amid the coronavirus disease 2019 (COVID-19) outbreak, with Philippines also seen to be among the most vulnerable countries that might suffer from disruptions in global supply chains after some factories in China halted operations.