ECCP at Work

Over 10M COVID doses administered

Almost four months since the national vaccination program started, some 10 million doses of COVID-19 vaccines have been administered, according to the Department of Health (DOH). COVID-19 vaccines that the Philippines has received are given in two doses. As of yesterday, the country has a supply of 17.455 million doses of China and US-made vaccines, donated and bought by the government and private sector. The government targets to vaccinate about 50 million to 70 million Filipinos by the end of the year to achieve herd immunity. It is procuring 148 million doses of vaccines this year.

Inflation, vaccine hesitancy lurk as threats to PH economic recovery

High inflation seen persisting throughout 2021 and vaccine hesitancy may slow the Philippines’ economic recovery, but the government is still confident that the rebound from the pandemic-induced recession is just around the corner. Pantheon Macroeconomics senior Asia economist Miguel Chanco said the BSP had “a blind spot to the upside risks to inflation still posed by oil prices.” While the BSP last week raised its inflation forecasts for 2021 and 2022 to 4 percent and 3 percent due to higher prices and inflation as the world recovers, Chanco said these latest projections did not capture the potentially bigger impact of global oil price movements.

On Money Laundering: PH hopes to be out of ‘grey list’ by Jan

The Philippines will be delisted from the countries under increased monitoring, or the grey list, of the Financial Action Task Force (FATF) “upon successful completion of all action plans — hopefully on or before January 2023.” Benjamin Diokno, Bangko Sentral ng PIlipinas Governor and Anti-Money Laundering Council (AMLC) chairman, said the Philippines reports its progress to the FATF three times a year — January, May and September. The AMLC chief also noted that the Philippines has largely addressed the action plans initially indicated in the 2018 Mutual Evaluation Report — from 70 down to 18.

IATF recommends retaining NCR, Rizal, Bulacan under GCQ ‘with some restrictions’ until July 15

The Inter-Agency Task Force has recommended retaining Metro Manila, Rizal and Bulacan under general community quarantine “with some restrictions” until July 15. During a televised Cabinet meeting, Health Secretary Francisco Duque III presented the recommendation of the policy-making body in the government’s COVID-19 response. Other areas recommended to be placed under GCQ until July 31 are listed in the article.

SEC to require filing of governance reports

The Securities and Exchange Commission (SEC) plans to require public companies and registered issuers to submit an annual corporate governance report (ACGR) in a bid to instill a strong domestic corporate governance culture. Covered are firms with assets of at least P50 million and with 200 or more shareholders holding at least 100 shares each of equity securities. Registered issuers refer to companies that issue public shares or certificates, equity securities that are not listed on an exchange, or debt securities that are required to be registered with the SEC, whether or not listed on an exchange.

Foreign groups see Davao region potential

International business chambers and groups have weighed in on various business interests and areas of investments in the Davao region, particularly in helping to rebuild the Micro, Small, and Medium Enterprises (MSMEs) hit hard by the coronavirus disease 2019 (Covid-19) pandemic. Of the 25 economic zones in Davao, 17 are operating ecozones, 12 are information technology centers, 4 are manufacturing special ecozones, 8 are proclaimed ecozones, 5 are IT parks and the remaining 4 are agro-industrial ecozones.

DTI backs flexible work setup for businesses

The Department of Trade and Industry (DTI) will propose to the Fiscal Incentives Review Board (FIRB) the passage of a resolution that would allow registered business enterprises (RBEs) to tap work-from-home or offsite operations as a long-term arrangement while still being entitled to incentives. The DTI is citing Rule 23 of the recently-issued implementing rules and regulations (IRR) of the Corporate Recovery and Tax Incentives for Enterprises which provides among others that exceptional circumstances including pandemic allow for the suspension of export requirements to RBEs, deferment of the income tax incentive availment, movement of the start of commercial operations and adoption of any other measures subject to FIRB approval.

Special session to extend Bayanihan 2 still in limbo

Lawmakers are cool to the call to convene a special session before their July 25 resumption, if only to authorize the extension of the Duterte administration’s Bayanihan 2 program and prevent billions of unspent funds for Covid-19 response from reverting to the Treasury after June 20. Senator Imee Marcos indicated on Sunday Malacañang is empowered  to remedy the situation on its own, wielding executive prerogative given time constraints.

BSP to keep rates at record lows for prolonged period

Economists are now convinced the Bangko Sentral ng Pilipinas (BSP) is likely to keep interest rates at record lows for a prolonged period as part of efforts to help the economy fully recover from the pandemic-induced recession. HSBC economist Noelan Arbis said the sharp hit to growth expectations this year and next year amid the resurgence of COVID-19 infections would likely prevent the BSP from raising rates in 2022.

Shipping woes, high rates to last until Q3

The global bottlenecks for shipping resulting in higher freight rates are expected to remain elevated until the third quarter of the year, weighing down on trading economies including the Philippines. In its weekly economic preview, market intelligence firm IHS Markit said the continued strong recovery in the global economy is followed by uptick in prices of raw materials and worldwide shipping woes.

P9 billion released for health workers’ risk allowance

With just days to go before the expiration of the Bayanihan 1 pandemic aid law, the Department of Budget and Management (DBM) has approved the release of P9.02 billion to the Department of Health (DOH) to cover the special risk allowance or SRA of health workers exposed to COVID.

Unless Delta variant breaches, NCR Plus 8 can have herd immunity by Christmas — OCTA

By June 22, official figures showed the country has administered 8.92 million COVID-19 vaccine doses. This would translate to 2,246,897 fully vaccinated individuals, out of the government's target of 50 to 70 million this year. OCTA fellow Fr. Nicanor Austriaco, a molecular biologist and member of the Order of Preachers, said it appears that the country has managed to block cases of the Delta variant with 17 reported so far, but the government should not let its guard down despite the improving picture in Metro Manila and nearby provinces.

PH back in global dirty money watchlist

After slipping back to the global money laundering watchlist, the Philippine government now needs to submit progress reports to the Financial Action Task Force (FATF) "thrice a year." The FATF - a global watchdog protecting against ill-gotten money and criminal proceeds - on Friday released its list of jurisdictions under increased monitoring, which included the Philippines.

PH secures $400-M World Bank loan for financial sector reforms

The $400-million development policy loan (DPL) to the Philippines that the World Bank has just approved will make the financial sector in the country resilient from shocks as the economy recovers from the pandemic-induced slump, the Washington-based lender said.

Economy seen facing bumpier ride to recovery

The Philippines’ economic recovery will remain at risk if it cannot speed up mass vaccination and contain COVID-19 spread while fiscal support to vulnerable sectors badly hit by the pandemic-induced recession stays meager, two economic think tanks said on Friday.

BSP wants foreign banks more involved in infra, ‘green’ financing

Foreign banks can play a major role in the Philippines economic recovery from the coronavirus pandemic by bringing their resources to bear to fund big-ticket infrastructure projects and by undertaking so-called green finance activities. At the same time, these international financial institutions can also boost inclusion in the country with a number of them interested in establishing local digital operations either by acquiring new licenses or converting their existing traditional banking licenses.