ECCP at Work

PH inflation further accelerates to 8.7% in January

Data from the PSA showed inflation accelerated to 8.7% last month, faster than the 8.1% recorded in December. January's inflation rate is well above the 7.5% to 8.3% forecast range of the Bangko Sentral ng Pilipinas for the month. In an earlier statement, the central bank said the inflation rate would remain elevated due to "higher electricity rates, approved water rate rebasing, higher domestic petroleum prices, uptick in the prices of key food items, and the annual increase in sin taxes."

RCEP is vital for PH economy – Pascual

Department of Trade and Industry (DTI) Secretary Alfredo Pascual recognized the need for the country's integration into the Regional Comprehensive Economic Partnership (RCEP) as it will lead toward a more investment-friendly country. Moreover, ECCP President Lars Wittig urged legislators to ratify the RCEP agreement the "soonest." "We are encouraged to see that there is a push from legislators to have this by the end of the first quarter," said Wittig. He also stated that there may be loss of significant opportunities in terms of export markets, investments and jobs for Filipinos, but it will yield significant economic benefits for the Philippines.

European biz group expects ‘flood’ of FDIs
The European Chamber of  of the Philippines is expecting more foreign direct investments into the Philippines, as the Marcos administration was perceived to be very agile in implementing critical reforms initiated by  of then-President Rodrigo Duterte, allowing more foreign firms participation that could create jobs and more revenues for the government. President Ferdinand Marcos Jr. visited several countries to attract foreign investment, and the latest was in Davos, Switzerland, which, according to him, has drawn billions of in pledges in various industries.

Faster PHL growth likely if Marcos addresses gaps in agri, good governance

The Philippine Economy could grow by as much as 8-10% if the government can address the gaps in agriculture, investment, and good governance, according to economists. According to the UA&P Center for Research and Communication Director for Research Bernardo M. Villegas, President Ferdinand R. Marcos, Jr. should meet these three challenges to reach 8-10% growth in the next five years. He also mentioned that the Marcos administration should aim for at least 2-3% agricultural growth every year to achieve the 8-10% gross domestic product (GDP) expansion. Agricultural production, which contributes about a tenth to GDP, dipped by 0.1% in 2022 for a third straight year of contraction. Economic managers have set a 6-7% GDP growth target this year, and 6.5-8% goal for 2024-2028.

NEDA approves 7 ‘high-impact’ projects

The National Economic and Development Authority (NEDA) has approved seven “high-impact” projects, ranging from agriculture to transportation, the agency’s top official announced. Three of the seven projects, namely the New Dumaguete Airport Development, Mindanao Inclusive Agriculture Development, and the first phase of the Integrated Flood Resilience and Adaptation, will be funded by official development assistance or ODA.

House panel to resolve VAT issue of indirect exporters
The House Ways and Means Committee is eyeing to introduce amendments to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law and other relevant sections of the Tax Code to resolve issues regarding the value-added tax (VAT) exemption on importation and VAT zero-rating on local purchases in freeport zones.

Senate will ratify RCEP - Zubiri 

Senate President Juan Miguel Zubiri is confident of getting the 16 votes needed to ratify the Regional Comprehensive Economic Partnerships (RCEP) free trade agreement."RCEP ratification is a priority of the Senate. As a matter of fact, we have a hearing on the seventh (February 7), for all the other stakeholders. We might have one more hearing for the oppositors but eventually, hopefully, we will be able to get 16 votes to ratify that," Zubiri said in a chance interview. He said the Senate expects to ratify the trade agreement within the first quarter of 2023.

DOTr starts privatization process for EDSA Busway

The Department of Transportation (DOTr) has started privatization process for the EDSA Busway as it seeks a consultant for the conduct of the turnover’s feasibility study. In an interview with reporters, Transportation Undersecretary Timothy John Batan said the DOTr has turned to the Private-Public Partnership (PPP) Center for help in initiating the procedure for privatization of the EDSA Busway. As part of the process, Batan said the DOTr asked the PPP Center to look for a consultant who would deliver the feasibility study on the transfer of the EDSA Busway to a private operator.

Proposed PPA cargo tracker will raise, not lower, costs – brokers

A local group of customs brokers is countering claims from the Philippine Ports (PPA) that its planned container tracking and monitoring  will bring down logistics and shipments costs, saying that the regulation instead will bring added costs in service and trucking fees, among others. In a statement sent to the Inquirer last week, Customs Brokers Federation of the Philippines (CBFP)  Julita Lopez assailed the position of the PPA saying that importers can save as much as 95  in  deposits once the Trusted Operator Program–Container Registry and Monitoring  (TOP-CRMS) is implemented.

Experts sought for air navigation system upgrade

The government is looking for aviation experts to aid in the conduct of the feasibility study on establishment of a back-up system for the country’s air traffic navigation facility, which recently dealt with a technical issue that grounded hundreds of flights. Roberto Lim, Transportation Undersecretary for aviation and airports, said they were targeting to do the feasibility study this year.

BSP to prioritize inflation outlook over Fed rate hike

The Bangko Sentral ng Pilipinas (BSP) will focus on managing inflation expectations in its policy review this month, even as the US Federal Reserve delivered a smaller rate hike at its own meeting last week. According to the BSP Governor Felipe M. Medalla, the next meeting will focus on inflationary expectations in (the Philippines), not the Fed’s 25-bp (basis point) rate increase. The Monetary Board will hold its first policy review meeting this year on Feb. 16. The BSP earlier gave a 7.5-8.3% forecast range for January inflation. This means January would mark the 10th straight month that inflation surpassed the BSP’s 2-4% target range.

Microgrid firms, NEA in talks over off-grid power crisis

THE National Electrification Administration (NEA) said it is in talks with the Department of Energy (DoE) to allow microgrid operators to step in and help resolve the looming power shortage in off-grid areas caused by high diesel prices. The Microgrid Systems Act authorizes QTPs to accelerate the electrification of off-grid areas that are deemed underserved. Microgrids typically use a combination of renewable energy and batteries to power remote communities, reducing their reliance on diesel generators.

DENR’s Loyzaga signals ‘balanced’ mining oversight regime

Environment Secretary Maria Antonia Y. Loyzaga said mining must be regulated in a “balanced” way to both protect the environment and raise revenue for the government to support the economic recovery.

Diokno: Maharlika-financed projects less prone to delay

Projects financed by the Maharlika Investment Fund (MIF) will be at reduced risk of administrative and legal challenges, with official development assistance (ODA) also becoming harder to access, Finance Secretary Benjamin E. Diokno said. The fund “will provide an additional source of financing for, and possibly speedier implementation of government priority projects,” he added.