ECCP at Work

LGUs urged to adopt digital technologies

Finance Secretary Carlos Dominguez has urged the Bureau of Local Government Finance (BLGF) to be at the forefront of helping local governments to adopt digital technologies in order to improve their revenue collection. Dominguez noted the need to optimize revenue generation powers and improve tax administration at both the national and local levels. Dominguez said real property tax, as one of the most important fiscal tools in this time of globalization and competition, offers a progressive source of revenue for the local governments.

IN NCR PER WEEK: Alert downgrade to add P7B output

The recent shift to a more relaxed alert level in Metro Manila will lead to an additional weekly output valued at P7.1 billion, the National Economic and Development Authority (NEDA) said. The Inter-Agency Task Force for the Management of Emerging Infectious Diseases has earlier decided to ease the level of restriction in the National Capital Region to alert level 3 from October 16 to 31 amid the improving coronavirus disease 2019 situation in the region. Chua reiterated during the Senate committee on finance hearing on NEDA’s 2022 budget that the economic team has pushed hard on further reopening the economy.

Peza, IT-BPM firms to plan next move on work-from-home setup

The Philippine Economic Zone Authority (Peza) is set to meet with information technology-business process management (IT-BPM) firms today (22 October) to discuss the next steps after the Fiscal Incentives Review Board (FIRB) rejected its proposal to base the work-from-home (WFH) threshold on gross revenues instead of work force. Peza Director General Charito Plaza told the BusinessMirror they are meeting with the IT Business Process Association of the Philippines (Ibpap) to discuss preparations for complying with the FIRB ruling putting a 90-percent WFH limit based on manpower deployment.

Fuel excise tax halt to cost government P131 billion–DOF

In a memorandum to Finance Secretary Carlos G. Dominguez, DOF Revenue Operations Group Undersecretary Antonette C. Tionko said the only way to suspend the fuel excise taxes under the TRAIN law is through legislation. Tionko added that the “substantial revenue loss” could affect the government’s Covid-19 recovery measures for next year. Based on the estimates, Tionko said the bulk of the total foregone revenues if excise taxes are suspended will comprise incremental excise revenues under the TRAIN Law which amounts to P106.7 billion. The remaining P24.7 billion will be derived from baseline excise revenues.

IATF resolution basis for ‘no jab, no job’ – Bello

Labor Secretary Silvestre Bello yesterday said certain establishments (i.e. restaurants, spas and other similar establishments) are allowed to require their workers to get vaccinated, based on a resolution issued by the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF), despite the absence of an enabling law The Department of Labor and Employment (DOLE), however, stressed that vaccination is not a requirement to gain employment, and it is discriminatory and illegal for employers to demand vaccination cards before hiring job applicants.

Agri damage now at P2.26B

Agricultural damage caused by Severe Tropical Storm “Maring” has reached P2.26 billion as of 20 October, the Department of Agriculture (DA) reported, adversely affecting more than 79,000 farmers, fishers, and backyard livestock and poultry raisers. Damage and losses continue to mount in the regions of Cordillera, Ilocos, Cagayan Valley, Central Luzon, Mimaropa, Bicol, Western Visayas, and Socckskargen. Production losses reached 105,943 metric tons (MT) of rice, corn, and high-value crops, spanning across 88,062 hectares of agricultural areas. Rice farmers were the hardest hit as P1.5 billion worth of the staple were destroyed by flash floods just as the industry entered the main harvest season.

Alert Level 2 in NCR possible in coming weeks as COVID-19 cases decline - DOH

Metro Manila may soon ease to Alert Level 2 if COVID-19 cases continue to decline this week, the Health department said. Health Undersecretary and spokesperson Maria Rosario Vergeire said the capital region currently has a seven-day average of 1,156 daily new cases, now getting closer to its figure prior to the March and April surge. She added that Metro Manila's positivity rate is now at 11%, and 17% at the national level. Vergeire attributed the improving numbers to a better Prevent-Detect-Isolate-Treat-Reintegrate or PDITR strategy of the government, as well as the large number of residents vaccinated in the National Capital Region.

IATF studying incentives for vaccinated people

National Task Force against COVID-19 chief implementer Carlito Galvez Jr. presented a list of suggestions from the private sector to boost vaccination by giving people incentives. He said among the suggestions of the private sector to encourage vaccination are allowing companies the right not to hire unvaccinated job applicants and requiring RT-PCR tests for existing employees who are not vaccinated at their own expense. The list of suggestions also includes “mandatory vaccines for health care workers, school employees, public transport workers, civil servants, and for 4Ps; mandatory vaccinations for unrestricted access to public transport, travel, restaurants and tourism establishments.”

In-school classes start 15 November

It’s a “go” starting on 15 November for at least 30 schools that were handpicked by the Department of Education (DepEd) to hold a dry-run of limited in-person classes. Of the number, three schools in Region 5 will hold face-to-face classes, three in Region 6, eight in Region 7, eight in Region 9, six in Region 10 and two in Region 12. Initially, 59 public schools were selected for the dry-run after they passed the granular risk assessment of the Department of Health (DoH). But DepEd Assistant Secretary Malcolm Garma told reporters in a virtual press briefing that the 59 was pared down to 30 for various reasons, including the reluctance by parents to send their children to school.

Gov't eyes closure of coal-fired power plants in Mindanao

The government plans to close coal-fired power plants in Mindanao once it finds the financing needed to improve the generating capacity of Agus-Pulangi hydropower plant, a move aimed to help address climate change. Finance Secretary Carlos Dominguez III said the government is currently looking for a financing mechanism to improve Agus-Pulangi’s generating capacity as part of its commitment to utilize more sustainable energy sources. Dominguez said a whole-of-nation strategy is needed to achieve the government’s commitment to cut greenhouse gas emissions by 75 percent over the next decade. 

53.3M of over 91M vax doses already administered: NTF

The Philippines has received more than 91.5 million doses of Covid-19 vaccines with a total of 53,315,069 doses administered nationwide, the National Task Force (NTF) Against Covid-19 said. The National Covid-19 Vaccination Dashboard showed 28,620,352 were used as first doses while 24,694,717 were given as second doses. The average daily jabs administered in the last seven days stood at 405,588 doses compared to 420,069 jabs recorded during the previous week.

Governors want alert level expansion deferred

The League of Provinces of the Philippines (LPP) has asked the Inter-Agency Task Force for the Management of Emerging Infectious Diseases to defer to November 1 the implementation of the alert level system of quarantine in areas outside the National Capital Region (NCR). LPP President and Mariduque Gov. Presbitero Velasco Jr. said aside from the need to explain what the alert level system is to their constituents, local chief executives also need to craft executive orders on the change. While they await response to their appeal, Velasco said governors will implement the IATF resolution that expanded the implementation of the alert level system outside Metro Manila.

 

Alert system in high-growth areas to help hasten economic rebound

The expansion of the implementation of the alert level system in high-economic growth areas will contribute to the fast rebound of the country, according to Secretary Ramon Lopez of the Department of Trade and Industry. Lopez said starting 20 October, the system applies to Region 4-A (Calabarzon), Central Luzon and Regions 7 and 11, which are known to have high contribution to the country’s gross domestic product. He added these areas are densely-populated and have received more vaccines. Lopez said for the provinces in these areas, some 400,000 of the 800,000 workers outside NCR can go back to work.

Revenue-based WFH proposal rejected

The Fiscal Incentives Review Board (FIRB) has rejected the request of the Philippine Economic Zone Authority (PEZA) to base the work from home (WFH) arrangements on gross revenues of information technology (IT) enterprises. “PEZA’s proposal is not consistent with the emerging economic strategy of the government to gradually and safely reopen the economy,” DOF assistant secretary Danofrata said. “The members believed that the resolution issued by the FIRB regarding the WFH arrangement for the IT-BPM sector is already a reasonable one considering that activities registered with PEZA or any other economic zones should actually be conducted within their ecozones,” she added.

Low vaccination rate in PH worries IMF

IMF Asia and Pacific department director Changyong Rhee said that last year’s lockdowns hurt the Philippines more than other economies in the region due to its heavy reliance on tourism and many contact-intensive service sectors. But Rhee said that if the Philippines could accelerate mass inoculation and contain the more infectious Delta strain of COVID-19, the Washington-based multilateral lender might revisit its downgraded 3.2-percent gross domestic product growth forecast for 2021. Rhee was also hopeful that the Philippines could return to its pre pandemic economic trend of 6-7 percent yearly growth rate with the help of the ambitious “Build, Build, Build” infrastructure program.

BSP: sustainable finance to help mitigate climate change, other risks

Bangko Sentral ng Pilipinas Governor Benjamin Diokno said the agency also recognized its vital role in promoting sustainable development, knowing full well that sustainability issues posed significant risks to its core mandates of price and financial stability. To help safeguard the stability of individual financial institutions and the entire system, the BSP implemented policies, including the issuance of the Sustainable Finance Framework for banks in April 2020 and the launch of the Sustainable Central Banking Program.

PHL launches sustainable finance roadmap

The Philippine government launched its sustainable finance roadmap to address the country’s policy and regulatory gaps in promoting sustainable investments. According to one of the plans under the Financing Pillar of the newly launched Philippine Sustainable Finance Roadmap, the Inter-Agency Technical Working Group for Sustainable Finance (ITSF) “will continue to explore a  range of initiatives to increase the supply of sustainable finance”, including providing tax incentives for sustainable bonds. The ITSF is led by the Department of Finance and the Bangko Sentral ng Pilipinas (BSP). 

Coronavirus remains a major risk for PHL recovery

The Philippine economy is expected to grow by 4.9% this year, as the coronavirus disease 2019 (COVID-19) remains a major risk to recovery, according to Mitsubishi UFJ Financial Group (MUFG). MUFG’s latest estimate is lower than its previous 5.3% growth expectation but is within the 4-5% full-year target set by the government. MUFG expects the Philippines to grow by 6.8% in 2022, below the government’s 7-9% goal. Ms. Ng said it would take the country beyond 2022 to recover its pre-pandemic gross domestic product (GDP).

Govt recalibrates vaccination strategy, eyes 1.5M daily COVID-19 shots

The government is modifying its vaccination strategy to protect more Filipinos against COVID-19 in the hopes of a better Christmas and safe election season. The first strategy is to ramp up vaccination to achieve 1.5 million shots administered per day — a far cry from the current weeklong average of 388,000 shots daily. The second strategy is to further protect the vaccinated and healthcare system by providing a third vaccine dose to healthcare workers and vulnerable sectors within the year.

DOLE set to issue 13th month pay computation advisory

The Department of Labor and Employment (DOLE) is set to come up with an advisory on the proper computation of 13th month pay for private-sector workers amid the coronavirus disease 2019 (Covid-19) pandemic. Benavidez added that since many workers have not reported to work and numerous establishments have either ceased or downgraded operations, the computation of the 13th month pay will be different. 

COVID-19 vaccine supply in PH stabilizes, but distribution still an issue

During a taped briefing with President Rodrigo Duterte that aired late Tuesday night, Galvez said the country has so far received over 20.2 million doses this month alone. It is the biggest vaccine delivery compared to previous months, according to him. It included some 7.3 million doses from the World Health Organization-led COVAX facility. However, the government's immunization program is being tested in terms of logistics in distribution of COVID-19 shots, he said. Galvez explained around 39 million doses remain in the country's stockpile. 

MMDA issues new travel restrictions for Metro Manila under Alert Level 3

The Metropolitan Manila Development Authority has released a resolution reminding the public of travel restrictions that must be followed while under Alert Level 3. Metro Manila eased into Alert Level 3 on Oct. 16 and this will stay in place until the end of the month.  Earlier, the Inter-Agency Task Force approved guidelines on intrazonal and interzonal travel, saying it shall be allowed "subject to reasonable restrictions based on age and comorbidities" as determined by local government units.

Metro Manila’s COVID-19 reproduction number lowest since May — OCTA

The coronavirus reproduction number in Metro Manila has further dropped to 0.55, the lowest recorded since May, independent research group OCTA said on Tuesday (19 October). The capital region’s last record of lowest reproduction number was 0.56 on May 18, OCTA Research fellow Dr. Guido David said in a social media post. Last week, David also said that all local government units in Metro Manila were already classified as at moderate risk for COVID-19 amid the decline in average infections.

3rd dose for health workers, vulnerable sector eyed in Nov.

Vaccine czar Secretary Carlito Galvez Jr. said the government is planning to begin administering a third dose of Covid-19 vaccine for the healthcare workers and the country's vulnerable sector by November or early December. The Department of Health (DOH) is awaiting the WHO’s official recommendation to give additional doses of the Covid-19 vaccine to immunocompromised persons, senior citizens, and healthcare workers. DOH Undersecretary Maria Rosario Vergeire said the WHO is expected to release its final recommendation by November.

24M Filipinos fully vaccinated against Covid-19: Galvez

NTF chief implementer Secretary Carlito Galvez Jr. said 24,498,753 Filipinos were fully vaccinated that is around 31.76 percent of the country's eligible population. Galvez said the Philippines has administered 52.7 million doses of Covid-19 vaccines nationwide, 28.2 million of which were given as first doses. The government, he said, is targeting to scale up its vaccination rollout to 1.5 million jabs a day to inoculate at least 50 percent of the country’s target population by yearend.

Over 8.2 million COVID-19 jabs to arrive by December

In a statement, the World Bank said that of the total 13 million doses, 4.73 million doses have already arrived with the remaining 8.2 million jabs to arrive before the year ends. These were procured by the government under the $500-million (P24.2 billion) loan from the World Bank under the COVID-19 Emergency Response Project Additional Financing. This financing builds upon the ongoing Philippine COVID-19 Emergency Response Project approved in April last year. The project provided funding to purchase laboratory equipment, test kits, ambulances and medical equipment and supplies. It was also used to refurbish isolation rooms and quarantine facilities.

Private sector seeks accelerated vax rollout

Acceleration of the jab rate is especially important outside the National Capital Region, the private sector groups of Task Force T3 highlighted. They believe that is now made possible by the growing amount of vaccine deliveries, resulting from the relentless efforts of vaccine czar Secretary Carlito Galvez, with strong support of the private sector in procuring vaccine doses via tripartite agreements. Other measures that the private sector groups within T3 are proposing include ensuring that the policies to open up vaccination to the general population and vaccinating 12-17 year olds are implemented across all regions and that booster shots be implemented immediately starting with health care workers.

Govt to implement alert level system in some provinces starting Oct. 20

The government will implement the COVID-19 alert level system in some provinces beginning Oct. 20, Malacañang announced. Roque said the implementation of the alert level system outside the National Capital Region is still part of the government’s pilot testing of the scheme. He noted that the government will only implement the system nationwide if it is already proven effective.

Policy support seen to mitigate ‘scarring’

The International Monetary Fund said macroeconomic policy support and reforms may help diminish the pandemic’s scarring effect on the Philippine economy. The IMF last week cut its growth outlook for the Philippines to 3.2% for this year, from 5.4% previously. This was below the 4-5% full-year target of the government. By 2022, the country’s economy is projected to expand by 6.3%, also slower than the 7% estimate given previously and the 7-9% goal set by the government. Mr. Helbling cited indicators of scarring effects that policy makers should watch out for.