ECCP at Work

NEDA chief: PH has to ’shape up’ to reap RCEP benefits

The Philippines has to shape up so that it can fully reap the benefits from the freshly-ratified regional free trade agreement and will not be left out by its Southeast Asian neighbors, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said. Balisacan said the Philippines could take the cue from its ASEAN peers Vietnam, Thailand and Indonesia that did more than trade deals to attract foreign investors and engage the private sector. The Philippines has to “speed up the development” also of the agriculture sector, and competition from foreign players through Regional Comprehensive Economic Partnership (RCEP) provides that fresh impetus, he emphasized.

FTAs crucial as Philippines approaches upper middle-income status

The Philippines’ progress to upper middle-income status will make concessional trade privileges harder to come by, making free trade agreements (FTAs) with blocs like the European Union (EU) a matter of urgency in order to lock in advantageous trading terms, the Department of Trade and Industry said. Trade Secretary Alfredo E. Pascual said that the Philippines will be ineligible for the EU’s Generalized Scheme of Preferences Plus (GSP+) trading scheme once it becomes an upper middle-income country.

Gov’t sticks to 6-7% growth goal this year

The Development Budget Coordination Committee (DBCC) will likely retain the economic growth target and inflation assumption for this year, economic managers said. Asked if the DBCC would revise or maintain its targets at its next meeting in April, Finance chief Benjamin E. Diokno told reporters it would be “maintained.” The DBCC has set a gross domestic product (GDP) growth target of 6-7% this year, slower than the 7.6% expansion in 2022. It also assumes inflation will settle between 2.5% and 4.5% this year. National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said it may be too early to even think of revising the GDP target.

Budget gap exceeds ceiling in 2022

The National Government’s (NG) fiscal gap narrowed year on year to P1.61 trillion in 2022, but exceeded the budget deficit ceiling. Data from the Bureau of the Treasury (BTr) showed the full-year deficit was lower by 3.35% or P56 billion than the P1.67 trillion shortfall in 2021. It was also higher than the revised P1.502-trillion target set by the Development Budget Coordination Committee (DBCC) last December. “The fiscal outturn was driven by revenue growth of 17.97% outpacing the 10.35% expansion in government spending,” the BTr said.

Philippine inflation yet to peak; Feb high pegged at 9.3%

Inflation in the Philippines may have accelerated yet again in February, with the month’s average expected to range between 8.5 percent and 9.3 percent, according to the Bangko Sentral ng Pilipinas (BSP), exceeding January’s fresh 14-year high of 8.7 percent. With the rate of increase in prices of goods and services not yet peaking, the government’s fight against high inflation is seen dragging on to 2024, with the rate of change in prices of goods and services expected to go back to within the preferred range no earlier than late in 2023.

DOTr: putting up 9 airports for PPP

The Department of Transportation (DOTr) plans to implement a Public-Private Partnership (PPP) scheme for the operation and maintenance of nine regional airports, according to Transportation Undersecretary for Aviation and Airports Roberto Lim. The regional airports include the Puerto Princesa International Airport, as well as the airports of Bohol, Laguindingan, Iloilo, Kalibo, Bacolod, Tacloban and Siargao.

Relief for banks funding Maharlika still under study, central bank says

The Bangko Sentral ng Pilipinas (BSP) said it has yet to determine whether it will extend regulatory relief to state-owned banks designated as funders of the proposed Maharlika Investment Fund. Deputy Governor Chuchi G. Fonacier, head of the central bank’s Financial Supervision Sector, said the Monetary Board will decide on possible regulatory relief measures for Development Bank of the Philippines (DBP) and Land Bank of the Philippines (LANDBANK).

Industry group expects electronics exports growth to slow to 5% this year

The Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) set a 5% exports growth target this year, as it expects demand to weaken amid a potential global recession. The industry missed its 10% growth goal in 2022, as the value of electronics exports jumped by 6.88% year on year to $49.09 billion. SEIPI President Danilo C. Lachica said that last year’s revenues hit a “record high,” even as it failed to hit the target.

Bank lending expands at slower pace at 10.4 percent in January: BSP

Outstanding loans of universal and commercial banks, net of reverse repurchase (RRP) placements with the Bangko Sentral ng Pilipinas, expanded by 10.4 percent in January 2023, government data showed. January's growth is slower than the 13.7 percent revised total in December 2022, the BSP said. On a month-on-month seasonally-adjusted basis, lending was broadly unchanged, it said.

Marcos says biofertilizers to be introduced to local farmers

President Ferdinand “Bongbong” Marcos Jr. has said the government will soon introduce the use of biofertilizer to Filipino farmers to lessen their dependence on expensive, imported, petroleum-based fertilizers. According to the Presidential Communications Office (PCO) on Wednesday, Marcos made the remark after a briefing with officials from the Department of Agriculture and other agencies on Tuesday. “We are totally dependent on petroleum-based fertilizer – now, we are going to introduce biofertilizer to our farmers and teach them how to use it. And hopefully, this will ease our concerns when it comes to the supply of fertilizer. And we can fully control the availability of biofertilizer,” the President said, as quoted by the PCO.

IT-BPM sector’s 2022 revenues hit $32.5B, beat target

The IT and Business Process Association of the Philippines (IBPAP) on Tuesday said that the local IT and Business Process Management (IT-BPM) sector saw its revenues grow by 10 percent to $32.5 billion in 2022, exceeding the target in the industry roadmap. IBPAP also said the number of full-time employees grew by 8.4 percent in 2022, bringing the industry’s total headcount to 1.57 million people. The key industries that drove growth in 2022 are tech, retail, health care, banking, financial services and insurance (BFSI), and telecommunications. INQ

DOLE now focusing on issue of jobs mismatch

The Department of Labor and Employment (DOLE) is now focusing on jobs mismatch issues as the agency prepares for the entry of more foreign investors in the country. In a statement issued through the Presidential Communications Office (PCO), Labor Secretary Bienvenido Laguesma said the DOLE is preparing for the entry of more foreign investors in the country by ensuring that the Philippines has a pool of well-educated and highly skilled workforce. The DOLE is paying attention  in resolving jobs mismatch issues through the upskilling of Filipino workers, said Laguesma.  Laguesma said upskilling of workers must be industry-led as well as demand- and market-driven so that workers can find employment that suits their skills.

Inflation control to hinge on agri competitiveness, crop insurance, other bills — Diokno

BILLS on agrarian reform, land use, livestock industry competitiveness, and crop insurance will help the central bank rein in inflation, according to the Secretary of Finance. Mr. Diokno called on Congress to pass the New Agrarian Emancipation Act, which will condone a total P58 billion in unpaid debt of farmer-beneficiaries stemming from agricultural land awarded under the Comprehensive Agrarian Reform Program. “This will allow farmers to focus their efforts on increasing the productivity of agrarian reform land,” Mr. Diokno said. The bill hurdled the House of Representatives in December, while a counterpart measure in the Senate has been consolidated into a committee report. In his State of the Nation Address, President Ferdinand R. Marcos Jr. called for the need to pass the measure. 

Employers say time to deliver on RCEP promises to farmers

The Employers Confederation of the Philippines (ECoP) said the approval of the Regional Comprehensive Economic Partnership (RCEP) means the focus must now turn to delivering on the safeguards promised to farmers and other businesses exposed to more foreign competition.

LTFRB postpones jeepney phaseout

PRESIDENT Marcos yesterday said the government’s transport modernization program needs to be reviewed and exhaustively discussed with concerned stakeholders before it is fully implemented, even as he underscored the importance of upgrading the country’s public utility vehicles (PUVs), especially the old, traditional jeepneys, for the safety of the riding public. Hours after the President made the statement during a chance media interview Wednesday morning, the Land Transportation and Franchising Regulatory Board (LTFRB) announced it was postponing the deadline for individual traditional jeepney franchise holders to join transport cooperatives from June 30, 2023 to December 31, 2023, effectively extending the provisional authority (PA) issued to jeepney operators and drivers allowing them to ply their respective routes and postponing the phaseout of old and traditional jeepneys.

Marcos eyes urban farming to address high food prices

The Philippine government is pushing for urban farming as part of efforts to address rising food prices and supply shortages, President Ferdinand Marcos, Jr. said Wednesday. The “Hapag Kay PBBM," launched by the Interior and Agriculture departments at Rizal Park, encourages urban barangays and households to dedicate small patches of land to plant fruits and vegetables. 

Oil firms roll back LPG prices

Several oil firms announced they will roll back LPG prices this month.  Petron and Phoenix said they cut the price of LPG by P3.50 per kilogram, and the price of their auto LPG by P1.95 per liter on March 1.  LPG vendor Solane meanwhile said it has also cut the price of its LPG by P3.45 per kilo. Petron said its price cuts reflect the international contract price of LPG for the month of March.