ECCP at Work

Metro, 7 provinces back to Alert Level 2

The Inter-Agency Task Force (IATF) for the Management of Emerging Infectious Diseases has downgraded National Capital Region (NCR) and seven provinces to Alert Level 2 amid an improvement in their coronavirus disease (COVID-19) indicators. Cabinet Secretary Karlo Nograles, who is also IATF co-chairman, said the new alert status will be effective from February 1 until 15. Aside from Metro Manila, the other provinces and cities reverted to Alert Level 2 are Batanes, Bulacan, Cavite, Rizal, Biliran, Southern Leyte and Basilan.

Villar pushes amendments to agri-agra law

Sen. Cynthia Villar is pushing for amendments to the Agri-Agra Reform Credit Act to help expand financing for farmers and fisherfolk as well as related micro, small and medium enterprises (MSMEs) by making it easier for banks to extend low-cost loans. Villar, who chairs the Senate committee on agriculture and food, sponsored last week the proposed amendments in plenary and urged her colleagues to immediately approve the same.

Inflation likely cooled in Jan. — poll

Inflation is expected to have decelerated in January, as a favorable base effect offset the rise in oil prices and the impact of Typhoon Odette on food supply. A BusinessWorld poll of 16 analysts last week yielded a median estimate of 3% for January inflation. If realized, this will be the second consecutive month that inflation will be within the 2-4% target band of the Bangko Sentral ng Pilipinas (BSP). It will also be slower than the 3.6% in December.

DTI seeks stronger powers under Price Act

The Department of Trade and Industry (DTI) should be given stronger police power such as revocation of licenses of perennial violators of the Price Act. In a television interview on Saturday, DTI Secretary Ramon Lopez expressed concern over the possible impact of rising fuel prices on inflation even as he assured the agency and the Departments of Agriculture and of Interior and Local Government are on the watch over price movements.

Full economic recovery seen this year

The economy will see full recovery to pre-pandemic levels this year as the country learns to manage the new coronavirus 2019 (COVID-19) pandemic. “This 2022 is when we will expect full recovery. Hopefully after Omicron, that’s the end or the tail-end of the pandemic, we can experience continuous growth,” said Trade Secretary Ramon Lopez in a television interview on Saturday, January 29. Lopez’ optimism is buoyed by the 5.6-percent growth registered in 2021, a rebound from 2020, the height of the pandemic, when the economy contracted 9.6 percent.

National asset management plan released

Economic managers on Monday released a national asset management plan (NAMP) to maximize government funds as it invests in infrastructure projects. The Department of Finance, Department of Budget and Management, and the National Economic and Development Authority in a Joint Memorandum Circular No. 2022-1 said that the government’s two-year asset management plan will be used to spend the country’s limited resources on assets that need funding most.

PHL ends 2021 with P11.7-trillion debt

The National Government (NG) recorded P11.73 trillion in outstanding debt as of end-December, pushing the debt-to-GDP ratio past the international threshold, preliminary data from the Bureau of the Treasury (BTr) showed. Government debt over the course of 12 months grew by nearly P2 trillion, or by 19.7% year on year. The year-on-year debt growth was slower than the 26.7% expansion in 2020 due to better fiscal performance and lower financing requirements, the BTr said in a statement on Tuesday.

Inflation seen easing to 3.7% in 2022 as food prices stabilize

Inflation this year could ease to 3.7% as food prices stabilize even as oil prices remain elevated, First Metro Investment Corp. (FMIC) and University of Asia and the Pacific (UA&P) said in a joint report on Tuesday. FMIC and UA&P in their market call report noted that inflation in December eased to 3.6% as food and transport price hikes decelerated. “Despite elevated crude oil prices, we still project (2022) full-year inflation at 3.7%, as food prices have stabilized in the recent months,” the two institutions said. This estimate is higher than the Bangko Sentral ng Pilipinas (BSP) projection of 3.4% for this year.

January tax deadlines extended in areas observing Alert Level 3

Tax payment deadlines for January in areas that observed the Alert Level 3 quarantine setting have been extended, the Bureau of Internal Revenue (BIR) said. The bureau, in Revenue Regulations No. 1-2022 issued on Jan. 27, said the deadlines for filing tax returns and paying the corresponding taxes have been extended by 30 calendar days from their original due dates. The extension also applies to the filing of position papers, replies, protests, and other documents related to audit investigations, while applications for tax refunds and issuances for deficiency tax collections also receive 30-day extensions.

DTI sees no need for RCEP fund

Secretary Ramon Lopez of the Department of Trade and Industry (DTI) does not see the need to set up a separate fund to support sectors that will be displaced by the Philippines; accession to the Regional Comprehensive Economic Partnership (RCEP) agreement. Instead, he proposes that agencies overseeing these sectors be given higher budget for programs of support. Lopez warned of the erosion of market shares of agriculture exports of the Philippines if the country does not accede to RCEP in the wake of agriculture stakeholders’ call for the Senate to defer the concurrence to the ratification of the agreement.

NEDA backs bills on liberalization

The National Economic and Development Authority (NEDA) renewed its call to lawmakers to pass the remaining two economic liberalization bills to aid in the country’s post-pandemic recovery. Socioeconomic Planning Secretary Karl Chua said the passage of the amendments to the Foreign Investments Act (FIA) and the Public Service Act (PSA) would be crucial in speeding up economic growth this year and beyond.

ECCP exec cites reforms needed to be prioritized by next admin [mention]

Policy reforms of the next administration should focus on curbing corruption and human capital development, an executive of the European Chamber of Commerce of the Philippines (ECCP) said. ECCP president Lars Wittig said a transparent government that upholds public trust is important in attracting investors. “Denmark has the least corruption in the world, and I’ve seen first-hand how it benefits business. Because when there is a very high trust level and transparency, that really makes business very adaptable and very willing to make investments,” he said in a briefing Monday.

ECCP calls for PSA amendment [mention]

The European Chamber of Commerce of the Philippines (ECCP) on Monday called for the immediate passage of the amendments to the Public Services Act (PSA) to attract more foreign direct investments (FDIs). ECCP president Lars Wittig said the passage of the amendments to the PSA will leverage the country's potential to achieve comparable levels of foreign investments in other Asean member states. Wittig said the European Union is by far the largest investor in the Asean region but only 4.6 percent of the European Union's 2019 $313-billion FDI stock has been invested in the Philippines.

European chamber calls on next gov’t to focus on anti-corruption reforms [mention]

The next administration needs to focus on reforms addressing corruption, according to the European Chamber of Commerce of the Philippines (ECCP). ECCP President Lars Wittig said in a roundtable discussion on Monday that such reforms benefit all businesses. “I would like us to look at reforms that can curb the increase in corruption. Corruption has not got any better. It got worse,” Mr. Wittig said. “When there is a very high trust level and transparency, that really makes business very adaptable and very willing to make investments,” he added. Recently, Transparency International reported that the Philippines declined to a “historic low” in its 2021 Corruption Perceptions Index (CPI).

ECCP: 2022, a year to further build back better [mention]

The European Chamber of Commerce of the Philippines (ECCP) held a virtual media roundtable discussion with the ECCP President, Lars Wittig, last 31 January 2022. The discussion presented ECCP’s views on the Philippine economy for 2021 and 2022, as well as the Chambers milestones and plans, upcoming flagship events, and legislative and economic reform priorities. The event also emphasized the Chamber’s efforts in strengthening ties with private sector and government partners, European Chamber regional counterparts and fueling the growth of ECCP members in their regional offices.

Roundtable Discussion with the ECCP President Lars Wittig [mention]

The European Chamber of Commerce of the Philippines (ECCP) held a virtual media roundtable discussion with the ECCP President, Lars Wittig, last 31 January 2022. Wittig affirmed that the Chamber has continued to provide support to the European-Philippine business community and the government in recovering from the repercussions brought about by the COVID-19 pandemic. For the past year, the ECCP achieved numerous milestones, in collaboration and with the significant support of its partners from the members of the business community, as well as the Philippine and European governments.