ECCP at Work

DoF preparing tax transition plan

Local should effectively collect revenues from the wealthy through improved real estate valuation, Finance Secretary Carlos G. Dominguez III said as he prepares a transition plan to help the next administration manage the country’s debt. As it works on a fiscal consolidation plan for the next administration, the Department of Finance (DoF) is looking into taxes that could pay for the Philippines’ mounting debt after the government ramped up borrowings to finance the coronavirus disease 2019 (COVID-19) pandemic response.

PH foreign tourist arrivals since border reopening near 13,500 as of Feb. 20

Almost 13,500 foreign tourists have arrived in the Philippines since it reopened its borders to fully vaccinated foreign nationals from visa-free countries last Feb. 10, latest government data indicated. One Health Pass figures showed the country welcomed 13,492 foreign inbound tourists as of Feb. 20, reported acting presidential spokesperson Karlo Nograles during his noontime briefing on Tuesday. It accounted for 54.3% of the total 24,826 arrivals during the period. Returning overseas Filipinos made up the remaining 45.7% or 11,334, he added. The United States remained the top country of origin for international tourists, accounting for 5,754 of total arrivals. Other major country sources were Canada, the United Kingdom, Australia, South Korea, Vietnam, Japan and Germany.

PHL investment grade rating to be supported by sustained policy reforms

Continued policy reforms by the next administration will likely help the Philippines keep its investment grade credit ratings despite the higher debt burden, a Monetary Board member said. “If you look at the history of the Philippines, there has been tremendous continuity in both monetary and fiscal policy, with the incremental reforms happening one president after another,” Monetary Board member Felipe M. Medalla said at an online regional macroeconomic conference series held by the Bangko Sentral ng Pilipinas (BSP). “So I guess this is one of the reasons our credit rating has not been brought down in spite of the fact that ratio of public debt to GDP (gross domestic product), in particular National Government debt to GDP has risen,” he added.

Intellectual property filings up 11.6% in 2021

Intellectual property filings rose 11.6% in 2021 to 46,496 as quarantine restrictions eased and allowed more business activity, according to the Intellectual Property Office of the Philippines (IPOPHL). The IPOPHL said in a statement on Tuesday that trademark applications increased by 12% to 39,616. Of the total, pharmaceuticals, health, and cosmetics were the leading source of filings with 11,360, followed by agricultural products and services at 10,977, scientific research and information communication technology at 8,946, management, communications, real estate and financial services at 7,624, and textiles, clothing and accessories at 5,843.

APEC takes steps to reconnect region, boost regional integration

The Asia-Pacific Economic Cooperation (APEC) is taking steps to pave a calibrated and measured way of reconnecting the dynamic region as economies learn to live with coronavirus disease 2019 (Covid-19), according to the APEC Secretariat-issued statement received here Tuesday. Such steps are also being taken as demand for travel is expected to make a steady comeback this year, the APEC Secretariat said. Permanent Secretary for Foreign Affairs of Thailand and 2022 chair of the APEC Senior Officials Thani Thongphakdi, in his address to senior officials and business leaders from 21 APEC member economies last week in an event held in Singapore, underscored the need to reconnect the Asia-Pacific region to support recovery.

‘Build, Build, Build’ projects lure foreign investments to Clark

The administration’s “Build, Build, Build” infrastructure program is expected to continue attracting foreign investments to Clark to create a new metropolis outside Metro Manila. During the Clark business conference Tuesday, Clark Development Corp. (CDC) Business Development and Business Enhancement Group vice president Rhyna Ventura said CDC has attracted PHP3.68 billion of foreign investments last year, 43 percent higher than the PHP2.6 billion approved foreign investments in 2020. She said these foreign investment commitments will create 6,690 jobs.

Planning for food terminal network underway

The government and private partners are preparing a network of food terminals to receive and process produce and sell direct to consumers and market vendor associations, the Agriculture department said. On Monday, Agriculture Secretary William D. Dar signed a memorandum of understanding to plan food markets and terminals with KMV Asia Development Corp. and Banyara Development Corp. The two companies will provide technical assistance in the design, policy framework and regulatory aspects of the food terminal network. Potential sites will be evaluated via market and feasibility studies. The project seeks to establish receiving and processing facilities for farm and fisheries produce.

Dominguez: Duterte economic reforms to benefit PH under new President

President Rodrigo Duterte’s chief economic manager on Wednesday (Feb. 23) expressed optimism that the combination of economic liberalization bills pushed by this administration and expected to be all signed by the President will allow the next administration to generate more jobs by attracting foreign investors. Speaking to the new set of Philippine Chamber of Commerce and Industry (PCCI) officers during their in-person oath-taking ceremony, Finance Secretary Carlos Dominguez III pointed to amendments to antiquated laws on foreign investments, public service, and retail trade as among the “game-changing battles” which he said the Duterte administration won, with help from lobbying by the private sector.

Mayors vote to downgrade Metro Manila to Alert Level 1 for March

The local chief executives in Metro Manila unanimously voted to downgrade the capital region to Alert Level 1 starting March 1, officials confirmed on Wednesday. The recommendation was sent to the Inter-Agency Task Force for the Management of Emerging Infectious Diseases, which will issue the final decision. "Local chief executives of the NCR are ready and fully capable of implementing the IATF-prescribed health and safety protocols under COVID-19 Alert Level 1 status," according to the resolution signed by the Metro Manila Council.

PHL climbs six notches on download speed ranking

Overall mobile download speeds in the Philippines had increased to 15.1 megabits per second (Mbps) in the last quarter of 2021 from 7 Mbps in the first quarter of 2019, or before the adoption of fifth-generation (5G) network, according to UK mobile analytics company Opensignal Ltd. Out of 100 global markets, the Philippines ranked 67th at the end of the fourth quarter last year in terms of 5G’s impact on the mobile network experience, better than the 73rd ranking in the first quarter of 2019. Countries with the highest download speeds in the 5G era were South Korea (129.7 Mbps), Norway (78.1 Mbps), The Netherlands (76.5 Mbps), Canada (64.1 Mbps), and Switzerland (62 Mbps).

European Union extends P1.7B in agriculture, climate grants for PHL

The European Union agreed to grant €30.4 million (about P1.76 billion) to the Philippines to support agriculture and climate projects over the next few years. The Department of Finance (DoF) and the EU delegation to the Philippines on Wednesday signed financing agreements for a €20.2-million (P1.17-billion) grant that will support agriculture businesses in the Bangsamoro region. Set to start this year, the five-year grant will fund assistance to the agriculture business sector in BARMM (Bangsamoro Autonomous Region in Muslim Mindanao).

Senate unlikely to give nod to RCEP

The Senate appears unlikely to give its concurrence to the Regional Comprehensive Economic Partnership (RCEP) agreement even when the session resumes after the May elections, as lawmakers question the lack of support from Malacañang. “The RCEP will be difficult to pass if the Executive branch doesn’t show full support for it,” Senator Aquilino Martin L. Pimentel III, who heads the Foreign Affairs Committee, told BusinessWorld in a Viber message on Tuesday. “If the Executive branch wants RCEP then they should show it.” Senate President Vicente C. Sotto III, who is running for vice-president in the upcoming elections, earlier said that if the decision was based on previous deliberations, the RCEP would likely be rejected by the Senate.

Relaxed protocols pushed

Secretary Ramon Lopez said the Department of Trade and Industry (DTI) will recommend to the Inter-agency Task Force on the Management of Emerging Infectious Diseases a new set of relaxed protocols whether or not the country is downgraded to Alert Level 1 on March 1. Lopez told a radio interview on Tuesday night the DTI will push for the removal of acrylic barriers in enclosed establishments especially as the virus, particularly the Omicron, was proven to be airborne. He said the DTI will ask establishments to further improve their ventilation by adding purifiers, opening doors and windows and using hepa filters in air conditioning.

Duterte successor to ‘inherit’ modernized customs bureau

President Rodrigo Duterte will turn over to the next administration a more modernized and sophisticated customs bureau that has transformed into a highly efficient agency and automated the majority of its processes on his watch, Finance Secretary Carlos Dominguez III said Wednesday. On the occasion of the Bureau of Customs’ (BOC) 120th founding anniversary, Dominguez congratulated the agency under the leadership of Commissioner Rey Leonardo Guerrero for accelerating its digital transformation and performing “exceedingly well” even amid the last two difficult years of the pandemic.

ARTA pushes for zero backlog policy

The Anti-Red Tape Authority (ARTA) is pushing for a zero backlog policy in national government agencies (NGAs), local government units (LGUs), and government-owned and controlled corporations (GOCCs) ensuring that all transactions with public offices have been delivered within the prescribed period. During the virtual press briefing of the Office of the Global Media and Public Affairs Wednesday, ARTA director general Jeremiah Belgica reminded NGAs and LGUs to follow the “3-7-20” rule under the Republic Act 11032, or the Ease of Doing Business and Efficient Delivery of Government Services, or the EODB law.

LGU credit rating system seen paving way for green bond issues [mention]

A system for rating local governments’ creditworthiness will someday facilitate their issue of bonds, including green bonds, enhancing their financial self-sufficiency, a Department of Finance (DoF) official said. “In the future, how do we help capacitate them so they can float, for example, their own green bonds to fund their own sustainable projects?” Finance Assistant Secretary Paola A. Alvarez said at a webinar organized by the European Chamber of Commerce of the Philippines on Wednesday.