ECCP at Work

Government urges private sector to tap more green financing

Private companies need to expand their green finance offerings to prepare their business models for the risks posed by climate change. Finance Assistant Secretary Paola Alvarez said yesterday private firms should contribute in the government’s effort to mainstream sustainable finance as an alternative instrument for funding. “We see that the private sector will have an essential participation, especially in issuing green and sustainable bonds,” Alvarez said in an online forum hosted by BusinessWorld.

FDIs double, hit $9.2 billion from January to November

The net inflow of foreign direct investments (FDIs) almost doubled to a four-month high in November, resulting in a 52.5 percent increase during the 11-month period last year, according to the Bangko Sentral ng Pilipinas. BSP Governor Benjamin Diokno said FDI inflow went up to $1.09 billion in November from $599 million in the same month in 2020, the highest since the $1.28 billion recorded in July last year. For the 11-month period last year, the BSP chief said FDIs reached $9.24 billion or $3.18 billion more than the $6.06 billion recorded in the same period in 2020.

Only 10% of target population has received boosters

The Department of Health (DOH) yesterday reported that only about 10 percent of the target population has received boosters against COVID-19. “On boosters, I admit we are still low. Nationally, we are about 10 percent only. Close to that. The discrepancy is really because of the time difference between second dose and booster shot. Three months at least,” Health Secretary Francisco Duque explained, as he hoped booster coverage would go up by the end of March. Duque said increasing the booster coverage nationwide is one of the reasons behind the mounting of another round of National Vaccination Days.

PEZA wants WFH for IT–BPO extended

The Philippine Economic Zone Authority (PEZA) wants registered information technology - business process outsourcing (IT-BPO) firms to continue to implement the work-from-home (WFH) scheme while enjoying incentives until September. The investment promotion agency (IPA) said its board is seeking the approval of the Fiscal Incentives Review Board (FIRB) to allow IT-BPO firms to continue their WFH arrangement without the required 10 percent on-site capacity and without diminution of fiscal incentives until Sept.12.

Unemployment eases in 2021 but still lags behind pre-pandemic levels

The country's unemployment situation fared better in 2021 compared to the height of the pandemic in 2020 as economic prospects improved then, but it still lagged behind pre-pandemic jobs figures. In an online briefing on Thursday, the Philippine Statistics Authority reported that the preliminary unemployment rate in 2021 declined to 7.8%, equivalent to 3.7 million Filipinos who were either jobless or out of business last year. Back in 2020, when scores of businesses and companies slashed their workforce as a result of pandemic curbs, unemployment was a record-high 10.4%.

PHL needs to spend better, collect more taxes — World Bank

The Philippine government needs to roll out a fiscal consolidation plan based on the right mix of expanded taxation and productive spending to manage debt racked up during the pandemic, a World Bank economist said. “To regain policy space, the government will need to start a gradual, fiscal consolidation process,” World Bank Senior Economist Rong Qian said at a Management Association of the Philippines briefing on Thursday.  “We know from past experience of rapid debt accumulation, countries will need to use a combination of revenue and expenditure measures to reduce the debt-to-GDP ratio. Relying on growth alone will not be enough.”

NEDA backs move to relaxed quarantine setting by March

Socioeconomic Planning Secretary Karl Kendrick T. Chua wants a shift to the least strict form of quarantine by March, which he said would add P11.2 billion to the economy each week. National Economic and Development Authority (NEDA) estimates indicate that a move from Alert Level 2 to Alert Level 1 would add 191,000 jobs per week. “If we continue to work together and see Alert Level 1, hopefully by the next month, then we would have added P11.2 billion in gross value added per week in the NCR Plus area,” Mr. Chua said in a Management Association of the Philippines economic briefing on Thursday.

Hard restart for foreign tourism

As the Philippines opens its doors to foreign tourists for the first time in two years beginning today, tourism stakeholders expect to restart cautiously and gradually as hotels continue to bleed, airlines still way below capacity and international visitors seen to come in trickles in the next few months. Benito Bengzon, o Philippine Hotel Owners Association (PHOA) executive director, at the Kapihan sa Maynical, called on the government to grant hotels a stimulus package as a lifeline to tide them over until they fully recover, especially as the quarantine requirement for fully-vaccinated visitors has been lifted. Quarantines had become a steady source of revenues of hotels during the pandemic and switching back to leisure hotels is not that easy.

Foreign tourists back as PH borders reopen

The country yesterday welcomed back more than 200 foreign tourists, almost two years after Philippine borders were closed to visitors due to the coronavirus disease (COVID-19) pandemic. Tourism officials greeted passengers flying in from countries, including the United States and China, who are in the country to visit famous beaches and other tourism spots or reunite with family and friends. The government has allowed the entry of fully vaccinated foreign tourists in a bid to hasten economic and tourism recovery, which got a beating when the pandemic hit the country.

Neda chief’s to-do list for next admin: Keep fiscal discipline, liberalization push

As the May 2022 elections draw near, many sectors are giving their laundry list for the next administration but businessmen preferred to ask what the next government should not do. For Socioeconomic Planning Secretary Karl Kendrick T. Chua, his list includes keeping the current and past administration’s efforts to implement fiscal discipline and the liberalization of sectors of the economy. In an economic forum hosted by the Management Association of the Philippines, Chua said the country has a good track record in terms of maintaining the country’s fiscal house as well as in opening up the economy to attract investments and create jobs.

Delay in RCEP entry unfortunate, ADB says

The country’s delayed participation in the Regional Comprehensive Economic Partnership (RCEP) Agreement is “unfortunate,” but firms and workers should not be discouraged, the Asian Development Bank (ADB) said. “RCEP presents opportunities for countries to find new opportunities in global value chains that are going to be facilitated by the agreement. It’s unfortunate to delay the implementation of that agreement, and at the same time, the agreement just went into force on January 1st and so its impacts are going to be quite gradual,” Albert Park, ADB chief economist and director general for the economic research and regional cooperation department, said in a webinar organized by the ADB yesterday.

DTI wants gradual reopening of economy

The Department of Trade and Industry (DTI) yesterday said the reopening of the economy should be done gradually when the quarantine status of the country is downgraded to Alert Level 1 to prevent another surge in coronavirus disease (COVID-19) cases. Trade Undersecretary Ruth Castelo, in an interview with DZBB radio, said that while they back calls to ease quarantine restrictions and open more businesses and jobs amid a downward trend in COVID-19 infections, “the recommendation of the economic group is to reopen gradually.”

BSP cites ‘urgent’ need for better climate data

The Bangko Sentral ng Pilipinas (BSP) believes there is a need for more “climate change-related” disclosures among banks and other local firms in order to move forward the country’s fight against global warming forward. In a recent report on financial stability, the Central Bank said there is little understanding of the country’s actual exposure to climate change agents because there is limited data disclosure involved. “There is an urgent need for better climate change-related disclosures. The lack of granular data limits our appreciation of the financial costs of climate change and the shift to greener energy sources,” the BSP said in the report.

DBM releases P2.8 trillion to agencies, LGUs

The Department of Budget and Management (DBM) has released P2.8 trillion to government agencies and local government units (LGUs) in the first month of the year, data released on Wednesday showed. Releases so far accounted for 56.1% of the P5-trillion national budget for the year, leaving P2.2 trillion more to be released. To compare, the DBM had released P2.6 trillion, or 58.3% of the P4.5-trillion 2021 budget in January last year. Releases to government agencies reached P2.39 trillion last month, or 82.8% of the allotted amount.

Philippines slips to 8th spot in macro risk ranking

The Philippines fell to eighth place in macro risk assessment ranking last year, from second spot in 2020, as the cover for foreign obligations and fiscal position declined due to the pandemic, according to DBS Bank Ltd. of Singapore. In its latest emerging markets risk heatmap, DBS said the Philippines and Thailand have downshifted from strong external positions. “The pandemic has been harsh on the Philippines, as it slipped from number two in 2020 to number eight in 2021,” DBS said in the report.

PEZA investments down 27% in 2021

Investments approved by the Philippine Economic Zone Authority (PEZA) dropped more than a fourth last year and fell below target as the pandemic continued to affect investor sentiment. PEZA data showed total investments for 204 projects approved by the agency reached P69.30 billion last year, down 27 percent from P95.03 billion in 2020. The agency was initially aiming for a seven percent growth in investment

approvals last year but trimmed the target to five percent in November.

Faster GDP growth, BSP tightening seen this year

The Philippine economy may grow faster this year, prompting the Bangko Sentral ng Pilipinas (BSP) to hike interest rates, Japanese investment bank Nomura said. It said the country’s gross domestic product (GDP) growth may accelerate to 6.5 percent this year, but below the seven to nine percent target set by the Cabinet-level Development Budget Coordination Committee (DBCC). The Philippine economy emerged from recession with a GDP growth of 5.6 percent last year after shrinking by 9.6 percent in 2020 due to the impact of the pandemic.

Omicron impact on PH seen to be mild

The impact of the Omicron variant of COVID-19 on the Philippine economy might be mild considering that manufacturing activities have so far declined less than in previous waves of infection of the new coronavirus, according to Capital Economics. The London-based economic research consultancy firm said in a commentary— penned by Gareth Leather and Alex Holmes—that while the Philippines was the first country in Asia to be hit by Omicron, daily cases have been falling. In fact, the number of cases of infection has dropped below their peak level in mid-January, Capital Economics noted. “Compared with previous virus waves, the government responded with relatively light-touch restrictions,” the company said.

Manufacturing growth eases in Dec.

Factory production grew at a slower pace in December but remained in the positive territory for the ninth straight month despite the supply chain disruption in the aftermath of Typhoon Odette.  Preliminary results of the Philippine Statistics Authority’s Monthly Integrated Survey of Selected Industries (MISSI) showed factory output, as measured by the volume of production index (VoPI), went up by 17.9% year on year in December. This was slower than November’s revised 25.8% growth and a turnaround from the 14.8% contraction recorded in December 2020.

Palace: Next phase of PH COVID plan to keep alert levels as 'warning system' for future surges

The government will retain the alert level system as it gears for the next phase of the National Action Plan (NAP) against COVID-19, Malacañang said Tuesday. “The Alert Level System will be institutionalized to serve as our warning system for possible increase in cases or outbreaks,” said acting presidential spokesperson Karlo Nograles, adding the loosest Alert Level 1 will be the country’s new normal. The NAP aims to balance COVID-19 pandemic management and the safe reopening of the economy. NAP Phase V particularly focuses on the country’s shift to the new normal, the National Economic and Development Authority (NEDA) earlier said.

Stricter quarantines led to job losses for 150K workers, DOLE reports

Stricter quarantine protocols last month have led to the displacement of around 150,000 workers, according to a new report from the Department of Labor and Employment (DOLE). In its latest displacement report, DOLE said a total of 53,057 workers permanently lost their jobs last month– twice the 25,226 in the same period in 2021. Of these workers, 48,193 were retrenched by 2,243 establishments, while the remaining 4,864 lost were affected by the permanent closure of 245 establishments.

PSA changes to boost telecom, transport–DTI

The Department of Trade and Industry (DTI) is confident the amendments to the Public Service Act (PSA) will bring in more global players to modernize the country’s telecommunication and transportation services. Once the amended PSA is signed into law, the easing of restrictions contained in the 85-year-old policy will “significantly improve the country’s investment climate,” according to Trade Secretary Ramon M. Lopez. Greater foreign investments are now expected to enter the country through telecommunications, shipping, air carriers, railway, and subways, paving the way for greater competition in these industries.

Neda says government infrastructure projects could create 2 million jobs this year

Over 2 million Filipinos are expected to be employed through the government’s various infrastructure initiatives this year, including the Infrastructure Flagship Program (IFP). In a briefing on Tuesday, National Economic and Development Authority OIC Undersecretary for Investment Programming Roderick M. Planta said, based on the agency’s estimates, the government’s infrastructure investments will translate to 2.5 million jobs this year. Last year, the investments may have created 2.3 million indirect and direct jobs.

Government targets 6 million jabs in Round 3

The government aims to inoculate six million people against COVID-19 during the third round of its “Bayanihan, Bakunahan” mass vaccination campaign this month, National Task Force Against COVID-19 chief implementer Carlito Galvez Jr. said yesterday. Scheduled on Feb. 10 and 11, the third leg of the National Vaccination Day aims to reach persons aged 12 and above, especially those in economic zones, as well as provide primary doses to senior citizens and members of the indigent population.

Improved gov’t services seen

The government will set up the Ease of Doing Business (EODB) Reporting System to push government agencies to improve their processes and services. The Anti-Red Tape Authority (ARTA) issued a joint memorandum circular (JMC) for the establishment of the Philippine EODB , a localized version of the World Bank Group’s Doing Business Report that measures the quality of regulatory practices of government agencies in relation to their adoption of the 10 Philippine Good Regulatory Principles (PGRP). The JMC provides that incentives will be granted well-performing agencies. The EODB will also measure the compliance of government agencies with the provisions of Republic Act No. 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018.