ECCP at Work

IATF updates the list of "Red," "Yellow," and "Green" countries/territories

IATF updates the list of "Red," "Yellow," and "Green" countries/territories, which will be in effect from Sept. 19 to 30.  Red List: Grenada, Papua New Guinea, Serbia, and Slovenia Passengers coming from these 4 countries classified as high risk are not allowed to enter the country unless they're repatriates. More information available in the article.

Revival of EU-PHL free trade talks sought

A European investors’ group wants a revival of free trade talks between the Philippines and the European Union (EU) to expand local exports to the 27-nation union. The first round of free trade agreement (FTA) negotiations between the Philippines and the EU was held in May 2016. Talks have since stalled, and an EU-ASEAN business sentiment survey in 2019 found that the business sector’s enthusiasm on the potential trade deal had waned. European Chamber of Commerce of the Philippines (ECCP) President Lars Wittig said smaller domestic manufacturers in the provinces would benefit from reduced trade barriers, especially companies that are not in export development zones.

NCR COVID-19 cases may peak in 2 weeks – OCTA

Citing data from the Department of Health, OCTA fellow Guido David said the region has recorded an average of 5,819 new cases from Sept. 9 to 15, up nine percent from the 5,340 daily new cases in the preceding week. While cases are still increasing, he noted that the nine percent growth rate is lower than the preceding week’s 14 percent. The reproduction number, which indicates the number of individuals a positive person can infect, also dropped from 1.39 to 1.28.

PhilID sign-up reaches ‘milestone’ despite pandemic

There is continuous progress in the registration pace of the Philippine Identification System (PhilSys) project amid the Covid-19 pandemic. In an advisory, the Philippine Statistics Authority (PSA), the lead implementing agency of the PhilSys, reported a total of 30,043,249 Filipinos have already done with the biometrics process, the second phase of PhilSys registration, as of Sept 10.

100% vaxxed tourism workers by Christmas

The Department of Tourism (DOT) sees the recovery of the tourism industry finally pushing forward as more tourism workers get vaccinated. The DOT continues to vaccinate tourism workers in many leisure destinations. As of September 10, 2021, it reported 126,097 tourism workers from the A1 and A4 priority groups already completed their Covid-19 vaccine doses, or 51.4 percent of the target 245,338 tourism workers for jabs nationwide. The National Capital Region (NCR) registered the most number of vaccinated tourism workers at 94 percent, followed by the Davao Region at 88 percent, and the Cordillera Administrative Region (CAR) at 80 percent.

Construction still top jobs generator, says DOLE

Labor Assistant Secretary Dominique R. Tutay said the sector topped the July round of the Labor Force Survey of the Philippine Statistics Authority (PSA) for industries with a net employment of over 100,000. This, even if the sector suffered the biggest number of job losses during the first seven months of 2021 with 73,396 workers, based on DOLE’s latest displacement report. 

PH lays out P1.07-T plan to provide clean water for all

The government’s new blueprint seeking to ensure steady supply of clean and safe water will entail a total investment of P1.07 trillion in the next 10 years and may be financed in part by the private sector and local governments. The state planning agency National Economic and Development Authority (Neda) was also pushing to establish a Department of Water Resources and a Water Regulatory Commission under the Philippine Water Supply and Sanitation Master Plan. Socioeconomic Planning Secretary and Neda chief Karl Kendrick Chua said the master plan would put into place a unifying framework to implement better water supply and sanitation services.

Delta outbreak seen to slow PH recovery

In a report, the Japan Center for Economic Research (JCER) slashed its 2021 gross domestic product (GDP) growth forecast for the Philippines to 3.2 percent from its 5.1-percent projection in June. The updated forecast was also below the government’s 4-5 percent goal. JCER estimated year-on-year GDP growth during the current third quarter to decelerate to 3 percent from the 11.8-percent jump in the second quarter. The think tank projected third-quarter GDP to match the second-quarter output or zero quarter-on-quarter growth, an improvement compared to the 1.3-percent quarter-on-quarter contraction during the April to June period.

Shell Philippines Exploration B.V. recognized as PH champion of sustainability

As an innovator of sustainable energy solutions, Shell Philippines Exploration B.V. (SPEX) was recently conferred the 2021 Europa Award for Clean and Efficient Energy by the European Chamber of Commerce of the Philippines (ECCP). The special award recognizes the sustainability business leader who had best incorporated the use of clean and efficient energy practices in its day-to-day operations while at the same time supporting the government’s thrust to reduce the country’s greenhouse gas emissions by 70% by 2030 to help in climate change mitigation as stipulated in the Paris Agreement of 2016. 

DOF eyes P21-B budget to boost digitalization bid

In his presentation before the Senate Committee on Finance, Finance Secretary Carlos G. Dominguez III said the proposed budget for DOF for 2022 under new appropriations is P21.24 billion, or 32.7 percent higher than its approved appropriations this year of P16 billion. Despite the year-on-year increase, Dominguez was quick to point out that this is still 1 percent lower than its 2017 budget of P21.5 billion. The largest budget allocations of the DOF for 2022 are for the Bureau of Internal Revenue (BIR) with P10.9 billion, and the Bureau of Customs (BOC) with P4.35 billion—to be spent to further improve tax administration and hasten the digital transformation of these two main revenue agencies.

Only restos with fully vaxxed staff may operate in AL-4

Only restaurants and food and beverage outlets whose employees are fully vaccinated will be allowed to reopen under Alert Level 4 status of Metro Manila. This was the clarification made by Trade Secretary Ramon Lopez, after Malacañang announced the operation of dining establishments with capacity  allocations for vaccinated individuals for indoor dining (10 percent), and al fresco dining (30 percent). The IATF guidelines also mandates minimum public health standards (MPHS) in these dining establishments, which include the installation of acrylic or dividers of a similar material, regular disinfection, and appropriate seating configuration ensuring social distancing.

Agri trade gap doubled in Q2 as imports surged

Latest data from the Philippine Statistics Authority show that agricultural imports in the quarter ending June surged by 44.4 percent year-on-year to $3.84 billion from $2.66 billion in the same period in 2020. At the same time, exports increased slightly at 2 percent to $1.53 billion from $1.5 billion. This resulted in an agricultural trade deficit of $2.32 billion, or double the gap of $1.16 billion recorded in the second quarter last year. Also, two-way trade ballooned by 29 percent to a total of $5.37 billion from $4.16 billion. Last year, total trade contracted by 18 percent.

Infra spending up 39%

The Department of Budget and Management (DBM) said expenditures for infrastructure and other capital outlays in July climbed from P52.3 billion a year ago. However, this was 22.9-percent lower than June’s P94.4 billion. The DBM attributed the year-on-year increase in infrastructure disbursements mainly to projects rolled out by the Department of Public Works and Highways (DPWH) that month. These included the construction, repair and rehabilitation of access, by-pass and diversion roads, bridges, drainage systems and flood mitigation structures.

Trade, construction activities jumped in Q2

Domestic trade and construction activities jumped year-on-year in the second quarter of 2021, reflecting green shoots of economic recovery when quarantine restrictions were gradually eased. The latest preliminary Philippine Statistics Authority (PSA) data showed that the quantity of goods traded across the country from April to June climbed 30.1 percent to 3.74 million metric tons from 2.88 million MT a year ago, which in turn had fallen 64.5-percent below the prepandemic volume. Separate construction statistics of the PSA, which was sourced from approved building permits nationwide, showed the total number of construction projects soared 114.1 percent to 38,389 during the second quarter from 17,932 a year ago, and was higher than the first quarter’s 36,621.

1K Firms back Bakuna Bubble: 200K jobs in NCR to be restored

Trade Secretary Ramon Lopez expects some 200,000 jobs will be restored with the reopening to fully-vaccinated individuals, albeit only at 10 percent of dine-in and basic personal care services like hair and nail care in the National Capital Region once it is placed under Alert Level 4 starting September 16. However, these numbers represent just 12 percent of the total workforce and weekly revenues in the sectors at 1.2 million and P1.5 billion, respectively. Meanwhile, presidential adviser for entrepreneurship Joey Concepcion yesterday said over a thousand business owners and franchisees have signed a manifesto expressing support to a proposal to allow greater mobility to the fully vaccinated as a way to revive the economy or the so-called Bakuna Bubble.

Senate OKs bill amending Foreign Investments Act in final reading

The Senate unanimously approved on third and final reading Senate Bill 1156, which seeks to amend the Foreign Investments Act of 1991. The bill is one of the key economic measures that President Rodrigo Duterte certified as urgent. Among the salient points of the legislative measure is the creation of the Investment Promotions Council, which will address foreign investors' complaints such as lack of infrastructure and poor Internet and electricity connection.

DOE Meets Stakeholders on Proposed Policy Renewable Energy Use Increase

The Department of Energy (DOE) held a virtual public consultation on the proposed increase in the annual rate of renewable energy that electricity suppliers are mandated to use as part of their power offering to the grid.” The Renewable Energy (RE) Act of 2008 prescribes the RPS, setting a minimum percentage that energy suppliers are required to source from eligible RE resources to contribute to the growth of the RE industry in the country. In its proposed 2021-2040 National Renewable Energy Program, NREB recommended an increase in the Annual Percentage Increment (Km) from the initial 1% to 2.52% starting 2023, to meet the country’s aspirational RE share of at least 35% in the country’s energy mix by 2030 and achieve an even higher RE share by 2040.

Metro Manila mayors to shorten curfew hours during pilot run of alert level system

Metro Manila mayors are set to issue a resolution revising the unified curfew hours to 10 p.m. to 4 a.m. during the pilot run of the alert level system from Sept. 16 to 30, Metropolitan Manila Development Authority Chairman Benhur Abalos said. The current curfew time is from 8 p.m. to 4 a.m. Metro Manila will be under Alert Level 4 starting Sept. 16. Under Alert Level 4, persons below 18 years old and over 65 years old, those with comorbidities, and pregnant women are not allowed to go out of their houses. However, they are permitted to go outside if they are buying essential goods or services or working in permitted industries.

Changes in Public Service Act hasten digital shift

In its latest policy note, state-run think tank Philippine Institute for Development Studies (PIDS) called for the immediate passage of the PSA aimed at encouraging more investments from overseas. Once enacted into law, the Philippines would be able to attract new investments from foreign firms in the telecommunications, transportation and other services sector, thereby increasing competition. For one, the entry of more players in the telecommunication sector would boost the overall digital landscape in the country, especially with rapid global digitalization amid the pandemic.

BIR orders new tax stamps on all cigarettes, e-cigs as stamp costs still hanging

The Bureau of Internal Revenue (BIR) has ordered new tax stamps affixed on all cigarettes, e-cigarettes and vapes despite still unresolved issues in the stamp cost to be borne by traders. Internal Revenue Commissioner Caesar Dulay and Finance Secretary Carlos Dominguez III issued Revenue Regulations (RR) No. 18-2021 published on Tuesday (Sept. 14), which consolidated the rules on internal revenue stamps affixed on all imported and locally produced tobacco, heated tobacco and vapor products for both domestic sale or exports. Products with tax stamps meant the correct excise had been paid by manufacturers and importers prior to sale.

Diokno: Sound economic fundamentals aiding PH recovery

The Philippines’ recovery from the deepest output contraction since World War II is being supported by sound fundamentals which would pave the way for a much stronger economy after the pandemic, according to the country’s chief monetary regulator. Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno pointed to the 11.8-percent growth in the second quarter of 2021 as evidence of this. In addition, manageable inflation, stable banking sector and robust external payments position, among other fundamentals, will support recovery and help keep the economic effects of the pandemic temporary, he explained.

Some PPA board members not supportive of petitions to increase port charges

The Philippine Ports Authority (PPA) said two petitions to increase port charges are currently awaiting a final decision, with some of its board members arguing that now is not the time to increase rates. Asked if the decision is being delayed due to the pandemic crisis, Mr. Santiago who is the vice-chairman of the PPA board said: “I will be transparent with you that there are some members of the board who are of the opinion that maybe now is not the time to consider the tariff increase.” He added that the petition of Manila North Harbor was presented to the board in August, but was sent back to the board’s technical working group for further evaluation.

BIR misses 8-month collection goal as ECQ reimposition bites

Preliminary data showed BIR raked in P1.379 trillion from January to August this year, falling short of its P1.388-trillion goal by 0.65 percent or P8.99 billion. However, this is still higher by 5.78 percent when compared with the P1.303 trillion it collected in the same eight-month period last year. For the month of August, BIR’s collection settled at P172.7 billion, lower by 24.5 billion or 12.4 percent than its P197.2-billion target. Sought for comment, Finance Assistant Secretary Maria Teresa Habitan said the BIR missed its targets due to the recent reimposition of ECQ.