ECCP at Work

PHL to weather impact of Europe recession–Neda

The Philippines will weather global headwinds such as the specter of recession in Europe as the country will rely on its own people and industries, according to the National Economic and Development Authority (Neda) and local economists. Think tank Oxford Economics said soaring energy prices across the Eurozone and the United Kingdom would likely lead to business closures and slow down economic growth in Europe. “As in the past decade and last year, the performance of the Philippine economy is unlikely to depend much on the growth performance of Europe, the United Kingdom, or even North America or headwinds in the global economy in general…” Socioeconomic Planning Secretary Arsenio M. Balisacan said.

Marcos OKs voluntary use of masks outdoors

President Ferdinand Marcos Jr. has signed an executive order making face masks voluntary in outdoor settings, Malacañang announced. Press Secretary Trixie Cruz-Angeles said Executive Order 3 will take effect immediately. The order states that voluntary wearing of masks in open spaces, or in non-crowded outdoor areas with good ventilation is allowed. However, those who are not fully vaccinated against COVID-19, senior citizens, and immunocompromised individuals are “highly encouraged” to wear their masks and observe physical distancing at all times. People should still wear face masks in indoor establishments, public transport, and outdoor settings where physical distancing cannot be maintained.

DOF: 30% WFH setup for IT-BPM sector extended until further notice

Information technology and business process management (IT-BPM) companies may continue the work-from-home (WFH) setup for up to a third of their workforce pending a conclusive decision to extend such an arrangement, the Department of Finance said. The department said Secretary Benjamin Diokno issued a memorandum allowing the policy to remain until the Fiscal Incentives Review Board (FIRB) decides on the Philippine Economic Zone Authority’s (PEZA) request for extension. IT-BPM firms were permitted to adopt the setup only from April 1 to Sept. 12 based on an FIRB resolution. “Considering the September 12, 2022 expiration of the resolution, it is just fair that we extend the WFH arrangement for IT-BPM companies until we finalize a resolution addressing the issue,” said Diokno, who also chairs the fiscal review board. PEZA’s request will be tackled in the next FIRB meeting on Sept. 15, said Finance Undersecretary Antonette Tionko.

DOTr still backing face mask mandates on public transportation

Despite the government's pandemic task force looking at making mask mandates voluntary outdoors, the Department of Transportation called on the public to continue wearing face masks inside public transportation vehicles. Although the COVID-19 surge in Metro Manila had begun slowing down, increased mobility in the wake of the return to face-to-face classes for students led to the reproduction number and positivity rate slightly increasing over the past week, independent pandemic monitor OCTA Research said. At a press briefing earlier last week, Department of Health officer-in-charge Maria Rosario Vergeire said that public transportation might be left out of the task force's move towards voluntary face mask wearing outdoors. 

Net foreign capital inflows in July halved from June level

Foreign direct investments that flowed into the Philippines fell for the second month in a row to reach a net of $471 million in June,  a 13-month low, according to data from the Bangko Sentral ng Pilipinas. Net inflows in June was 52 percent lower than the $971 million recorded in June 2021. The BSP said net inflows followed a drop in foreigner’s net investments in debt instruments. Most of the inflows came from Japan, the United States, Singapore and Switzerland.

ECCP, Nestlé upbeat on Mindanao RE [mention]

THE European Chamber of Commerce of the Philippines (ECCP) and Nestlé Philippines are upbeat on the development of renewable energy (RE) and service delivery in Mindanao as they cited the need for continuous collaboration between government and industry in driving growth in the region's shift to alternative energy. Jose Uy 3rd, Nestlé Philippines senior vice president and head of corporate affairs, stressed that as the government develops more policies and initiatives to promote clean energy use and production, private sector players are investing in RE to decrease their impact on the environment and become more sustainable. "As a food and beverage company, we protect nature because we depend on its gifts. This is why tackling climate change is a top priority for us with our Net Zero Roadmap focusing on sourcing responsibly, shaping a waste-free future and transforming our operations," he said. "Business-wise, switching to renewables is advantageous because it saves on energy costs, strengthens stakeholder relations and enhances corporate sustainability," Uy noted.

Proposed changes to BOT rules may burden public with higher fees

THE PROPOSED new revisions to the implementing rules and regulations (IRR) of the Build-Operate-Transfer (BOT) Law may give private sector proponents more leeway in imposing higher fees and charges to the detriment of consumers, a public investment analyst said. “There is nothing in the rules which prevent PPPs (public-private partnerships) from imposing automatic increases in fees and charges. In fact, the rules allow initial and future fees and charges to be implemented even without regulatory approval,” convenor of think tank InfraWatch PH Terry L. Ridon said. “This will be a red line for the public, and maybe for government as well, because while the old rules greatly favored government, these new rules allow unbridled private sector power over public services,” he added. The National Economic and Development Authority (NEDA) last week released the proposed changes to the IRR of the BOT Law.

Debt service up 158% in July, hits P156.198B

THE country’s debt service soared by 158.02 percent in July 2022, the start of the Marcos administration, according to data from the Bureau of the Treasury (BTr). Based on the data, total debt service reached P156.198 billion in July 2022, higher than the P60.537 billion posted in July 2021. This is the second highest debt service payment made by the country this year. The highest was at P215.838 billion in January 2022. However, the higher debt service made by the country in July did not lead to a higher debt service in the seven-month period of 2022. In the January to July 2022 period, interest payments reached P309.306 billion, a 15.6-percent growth from the P267.559 billion posted in the same period last year. For 2022, the government has programmed debt payments to reach P1.298 trillion.

DOH seeks higher taxes on sweetened beverages, junk food

After getting P155 billion from sin taxes on tobacco and alcohol products, the Department of Health (DOH) now wants to slap additional excises, this time on sweetened beverages, junk food and “nonstaple” food high in salt and fat purportedly to control obesity in the country. At a press conference, Maria Rosario Vergeire, officer in charge of DOH, said that the Sin Tax Law, which slapped taxes on alcoholic drinks, traditional tobacco and heated tobacco products, is part of the DOH’s strategies to be able to regulate the “sustained increase” of lifestyle-related risk factors, such as obesity. These risk factors, she said, would lead to obesity, which then could make people prone to noncommunicable diseases. Among the noncommunicable diseases known to be among the leading causes of death in the Philippines are heart disease, hypertension, diabetes and cancer.

Gov’t now in talks with new generation COVID-19 vax manufacturers

The Department of Health (DOH) said it is now talking to the manufacturers of new generation COVID-19 vaccines, which specifically targets the Omicron variant. The United Kingdom is the first country to approve Moderna's COVID-19 vaccine that targets Omicron. But DOH officer-in-charge Ma. Rosario Vergeire said that the shipments of the vaccines may not arrive until the first quarter of next year as they will still be evaluated by the local health authorities. Based on the latest sequencing run, there are 436 new Omicron subvariant cases detected. Of this, 425 are BA.5 subvariants which the Philippine Genome Center said may be a major contributor in the surge of infections in the past months.

ADB bats for urgent policy plan for education

As children with disabilities have been hit harder by the learning crisis during the pandemic, the Asian Development Bank (ADB) said it is imperative for countries in Asia Pacific to immediately take action by having a policy and plan for inclusive education. In the multilateral lender’s latest blog, social sector specialist Jukka Tulivuori and education specialists Eila Heikkila and Bethany Davidson-Widby cited the need for quick action from countries in the region to make sure children with disabilities receive the quality education they deserve. The ADB experts said children with disabilities have suffered the most from the learning crisis, made worse by the pandemic.

Diokno urges franchisers to digitalize, climate-proof operations

Finance Secretary Benjamin Diokno urged franchisers to lead the charge in greening and transforming the country’s business sector by mainstreaming digitalization in their operations and embracing sustainable business practices. “I call on you, as industry leaders and business operators, to transform the Philippine business landscape, beginning with your place of work. Mainstream the use of digital technology in your business operations by digitalizing core business processes. Train and equip your workforce to become digitally-empowered employees, managers, and leaders,” said Secretary Diokno. Secretary Diokno said that the pandemic experience has highlighted the importance of integrating digital technology and sustainability to ensure businesses remain viable and competitive amidst an unpredictable global business climate.