ECCP at Work

Coke Philippines commits to water stewardship

Coca-Cola Philippines said water stewardship has long been a business imperative for Coca-Cola, but the company aims to do more to increase water use efficiency in the production of its beverages and to help communities address local water resource challenges such as the availability of clean water. In recognition of its industry-leading water management practices, Coca-Cola Beverages Philippines, Inc. (CCBPI)—the bottling arm of Coca-Cola in the country—was recently awarded best in Water Resource Management by the European Chamber of Commerce of the Philippines (ECCP) during its first Europa 2020 awards.

DOE, stakeholders: PH energy sufficiency must rise beyond 53%

The country’s energy industry has to make and carry out firm decisions to become more independent and resilient as it has now arrived at “a state of climate justice” that is well beyond mere mitigation.  “Our energy self-sufficiency is about 53 percent, which represents the share of our region’s energy sources to total,” said Department of Energy - Energy Policy and Planning Bureau director Jesus Tamang during the webinar entitled “Energy in Sustainability: Renewable Energy Solutions at the Core of Climate Crisis” conducted by the European Chamber of Commerce of the Philippines (ECCP) in partnership with the Philippine Energy Independence Council (PEIC).  The webinar, which is part of the 2021 Energy Smart Forum Series, sought to come up with a roadmap toward the use of cleaner energy sources by 2040 to prevent an energy crisis. 

Investments boost hot money recovery

Short-term investments made by foreign investors to the Philippines climbed back to the net inflow territory in August due to higher investments coming into the country during the month, the Bangko Sentral ng Pilipinas reported. The BSP said the total gross inflows of $807 million in August more than offset the $795-million gross outflows for the month, resulting in the net inflow that reversed the net outflows of $340 million recorded in July. The BSP attributed the recovery of FPI to various domestic developments during the month, including the improvement in corporate earnings for the second quarter of 2021, the recomposition of Philippine Stock Exchange’s (PSE) benchmark index and the narrowing of the National Government’s fiscal deficit for the month of July 2021.

Neda chief optimistic on Q3 GDP performance

The country’s chief economist expects a bigger third-quarter gross domestic product (GDP) than the second-quarter output amid supposedly improved management of health and economic risks despite recent Delta strain-induced lockdowns. Socioeconomic Planning Secretary Karl Kendrick Chua said it was possible that the goods and services produced in the country from July to September grew compared to second-quarter GDP. The government’s third-quarter GDP report will be out on Nov. 9.

Bank lending snaps 8-month contraction

BSP Governor Benjamin Diokno reported that bank lending expanded by 1.3 percent in August following a 0.7-percent decline in July. Bank lending first collapsed into contraction territory in December 2020 by 0.7 percent as the restrictions brought about by the pandemic affected the local banking industry. The contraction persisted amid the sustained all-time low monetary policy rate in place. In comparison, the Philippines’s bank lending grew 13.6 percent before the onslaught of the global health crisis in March 2020.

Philippines eyes $500-million disaster loan from World Bank

The Philippine government has tapped the World Bank for a $500-million loan to boost the country’s resilience against natural disasters and help it contain a coronavirus pandemic. A World Bank document showed the proposed loan program will be its fourth for the government’s disaster risk management initiatives that allows a so-called deferred drawdown option. Under the plan, funds are only released when a disaster strikes or a national calamity is declared to help with rehabilitation efforts, Finance Undersecretary Mark Dennis Y.C. Joven said. The multilateral bank’s board is expected to act on the proposal on Nov. 16.

PSA: Work quality improved amid rising joblessness

The unemployment rate quickened to 8.1% — the worst in four months — from 6.9% in July, data from the Philippine Statistics Authority (PSA) showed. There were 3.882 million unemployed Filipinos in August, up from 3.073 million a month earlier. On the other hand, the quality of available jobs improved as the underemployment rate — the ratio of those already working but still looking for more work or longer job hours — slowed to 14.7% from 20.9% in July. Underemployed Filipinos fell to 6.482 million from 8.692 million a month earlier. Workers increased to 48.116 million in August from 44.74 million in July, bringing the labor force participation rate to 63.6% of the working age population. The rate was 59.8% in July.

Small enterprises face funding woes

More micro-, small- and medium-sized enterprises (MSME) need more funding to return to full operations, indicating worsening financial challenges, according to a report by the Asian Institute of Management (AIM). About a third of them needed P100,000 to P500,000 to “retain and sustain full operations,” it said, citing a survey of 700 businesses in April. In its September 2020 survey, only 17% of companies needed those amounts. While 14% of the companies surveyed in April needed P500,000 to P1 million, only a tenth said the same seven months earlier.

Level 4 stays in MM as pilot implementation of alert scheme extended until Oct. 15

Trade Secretary Ramon Lopez told reporters that the capital region, home to more than 13 million people, will remain under the same alert level that was hoisted since Sept. 16 when the dry run for the new scheme started.The pilot imposition of the 5-level alert system which goes with granular lockdowns in a bid to arrest the spread of COVID-19 while allowing some businesses to have limited operation, was supposed to end Thursday (30 September). Presidential spokesman Harry Roque said the Inter-Agency Task Force for the Management of Emerging Infectious Diseases decided to extend the pilot implementation of the said scheme in the National Capital Region until Oct. 15.

BSP eyes September inflation at 4.8% to 5.6%

Higher prices of oil products, basic and prime commodities, select fruits and vegetables, rice, as well as power rates in areas being serviced by the Manila Electric Company are seen to accelerate the inflation rate in September to a range of 4.8 percent to 5.6 percent. In a statement, the Bangko Sentral ng Pilipinas said these factors are seen to be countered by the drop in meat prices and strengthening of the peso against the US dollar. In August, the rate of price increases rose to 4.9 percent, its highest since January 2019.

Unemployment rate shows rough path to economic recovery: DTI

The latest unemployment data shows that the country’s path to economic recovery remains rough amid the ongoing coronavirus disease 2019 (Covid-19) pandemic, the country's top trade official said on. The Philippine Statistics Authority (PSA) reported Thursday that the unemployment rate rose to 8.1 percent in August 2021 after recording a 6.9-percent unemployment rate in July 2021, the lowest since the onset of the pandemic. More businesses were shut down in ECQ and MECQ classification or Levels 5 and 4 under the new alert level system protocol. In August, Metro Manila was reverted to ECQ early and is currently under Alert Level 4.

FDI recovery shows positive long-term prospects: DOF

Citing Bangko Sentral ng Pilipinas (BSP) data, the Department of Finance (DOF) economic bulletin said the FDIs last June posted a 60.5 percent year-on-year growth to USD833 million. In the first half of this year, the FDIs amounted to USD4.3 billion, up by 40.7 percent from the previous year’s level. The economic bulletin said the 7.7 percent year-on-year rise of reinvested earnings and the 86.5 percent rise in net debt instruments countered the 8.9 percent drop in net equity capital investments for the six-month period.

PH places Bermuda on ‘Red’ list

The Philippines has placed the British Overseas Territory of Bermuda on its “red” list, Malacañang said. This, after the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) updated its list of countries, jurisdictions, and territories that belong to the red, yellow, and green list for Oct. 1-15. Presidential Spokesperson Harry Roque said Bermuda is the only country on the red list, while there are 49 countries on the green list.

House OKs proposed P5-T 2022 nat'l budget on final reading

The House of Representatives on Thursday night (30 September) approved on third and final reading the proposed PHP5.024-trillion budget for 2022. With 238 affirmative votes, 6 negative votes, and no abstention, the chamber passed House Bill 10153, or the 2022 General Appropriations Bill (GAB), which is the last full year budget to be enacted under the administration of President Rodrigo Roa Duterte. The House was able to pass its version of the spending measure on second and third reading on the same day following Duterte's certification of urgency.

Foreign business groups pitch Ease of Paying Taxes bill

In a statement, the foreign business groups said they recently sent a letter to the Senate Ways and Means Committee requesting that it deliberate the proposed Ease of Paying Taxes Act. The House approved the bill on third and final reading on September 15; it was subsequently transmitted to the Senate a day after. The measure wants to put in place a simplified process of tax filing returns to improve compliance with tax rules and regulations in the country. It also seeks to create a Taxpayer’s Advocate office, allowing the public to file for Tax Identification Number offsite, among others. Citing the Joint Foreign Chambers, the business groups said that enforcing the legislation can help the country improve its ease of doing business, which can bode well for its ranking in the World Bank’s (WB) Doing Business report

Fresh lockdowns destroy more jobs in August

Fresh restrictions imposed in August to curb the spread of hyper-contagious Delta variant threw more people into unemployment during the month. There were 3.88 million people who were either unemployed or out of business in the Philippines in August, up from 3.07 million in July, results of a survey of 10,919 households by the Philippine Statistics Authority showed. That translated to a jobless rate of 8.1% in August, up from 6.9% in July. For economic officials, the higher unemployment figure was “expected” due to the brief return to enhanced community quarantine last month to arrest a renewed surge in infections.

Vaccine rollout for minors may start on kids with comorbidities – DOH

The Department of Health (DOH) on Wednesday said the vaccination of minors  would start once the adequate coverage of the A2 priority group or senior citizens has been achieved nationwide and vaccine supply becomes sufficient to include children. Health Undersecretary Maria Rosario Vergeire has confirmed that pediatric vaccination will start among 12 to 17 year olds with comorbidities as part of Priority Group A3. The target start of inoculation is by October, she said. This, as Vergeire also said that senior high school students who will attend face-to-face classes would not be required to get their Covid-19 shots.

DTI, DOT set rules for dining out

The Department of Trade and Industry (DTI) and Department of Tourism (DOT) have issued guidelines on health protocols for indoor and outdoor dining under the alert level system. Under Joint Memorandum Circular (JMC) 21-02 signed by Trade Secretary Ramon Lopez and Tourism Secretary Bernadette Romulo-Puyat, all restaurants including those located in DOT-accredited accommodation establishments, fast food businesses, canteens, food courts, food parks and other eateries providing dine-in services, regardless of size, would need to comply with health protocols during implementation of alert levels.

Philippines holds potential to become a regional leader in sustainability

The Philippines has the potential to lead in sustainability efforts across Southeast Asia, management consulting firm Bain & Co. said in a recent report, citing opportunities for renewables investments and the rise of green businesses. The consulting firm noted that the Philippines was moving towards reducing emissions by phasing out coal and attracting green financing schemes. Bain & Co. noted the presence of opportunities in solar and wind power investments in the Philippines.

Philippines’ digital competitiveness slips

The country placed 58th out of 64 economies in IMD business school’s World Digital Competitiveness Ranking 2021, after falling to 57th place in 2020 from 55th a year earlier. It retained the 13th spot among the 14 Asia-Pacific economies measured. Each economy is ranked in indicators grouped under three pillars. The Philippines fell three spots to 57th in the “future readiness” pillar after poorer performance in adaptive attitudes, business agility, and information technology integration. The Philippines also dropped by one place in the “technology” pillar after a decline in capital, and it sank by one spot in the “knowledge” pillar as its training and education rank fell.

Weak consumption likely to persist

In its latest Asia Economic Outlook, ANZ Research estimated household consumption will only pick up by 1.4% this year, a turnaround from the 7.9% drop in 2020, but still far from the pre-pandemic growth of 5.9% in 2019. Private consumption is a major growth driver for the economy contributing around three-fourths of gross domestic product (GDP) each year. Unless consumer spending “regains its pre-pandemic strength,” ANZ Research said outlook for the Philippines will remain “somber.” The research firm is only seeing economic output to return to its pre-crisis level by the second half of 2022.

Fresh pork prices fall as imports rise, ASF spreads

The Department of Agriculture (DA) said retail prices of fresh pork have dropped by 20 percent from their peak at the start of the year. This is amid falling farmgate prices, rising imports and the spread of African swine fever. Based on DA’s monitoring of 11 public markets in Metro Manila yesterday (September 29), prevailing price of fresh kasim is now at P280 per kg from its peak price of P360 per kg in January while fresh liempo sells at P340 per kg from peak price at P400 per kg at the start of the year.

Commitment fees on ODA-funded projects up 45% on delays–Neda

In its ODA Portfolio Review 2020, Neda said the country’s commitment fees reached $6.78 million due to the cost of financing and implementation delays. Commitment fees are a portion of the loan amount that is paid by governments for undisbursed portions of their ODA loans from various multilateral and bilateral partners. This means whether or not projects are delayed, governments must pay the fees. Based on the report, six infrastructure projects logged the largest commitment fees worth $3.13 million, due to implementation delays.

OECD tax reform to benefit PHL ‘moderately’

The global tax reform being proposed by the Group of 20 (G20) and the Organisation of Economic Co-operation and Development (OECD) may only benefit the Philippines “moderately,” according to the Asean+3 Macroeconomic Research Office (AMRO). In an analytical note, AMRO said this is specific to Amount A which aims to reallocate a portion of profit above the threshold to economies where the revenue is generated. Amount A will apply to multinational enterprises (MNEs) with a global turnover of above 20 billion euros and have a profitability of above 10 percent.

Biz seeks higher capacity, allow unvaxxed under Alert Level 3

Presidential Adviser for Entrepreneurship Joey Concepcion has recommended to the Inter-Agency Task Force for the Management of Emerging Infectious Diseases to increase the allowed capacity of business establishments and permit unvaccinated individuals in these establishments in areas that will be placed under Alert Level 3. Concepcion said the business sector, particularly operators of restaurants, spa, personal care services, and gyms met with medical professionals discussing safe and gradual reopening of the economy for the last quarter of the year.

EU bats for 'free, open' maritime supply routes in Indo-Pacific

EU Ambassador Luc Véron said the bloc's new Indo-Pacific strategy seeks to contribute to the region's stability, security, prosperity, and sustainable development, in line with the principles of the rule of law and international law. Veron said the EU strongly opposes any unilateral actions that could undermine regional stability and the international rules-based order, citing the statement EU issued in April 2021 following the swarming of some 200 Chinese vessels in the Whitsun Reef. Meanwhile, Veron said the bloc supports the Association of Southeast Asian Nations (Asean)-led process towards an effective and substantive Code of Conduct on the South China Sea.