ECCP at Work

Urban, regional planning seen vital for growth

Urban and regional planning can be vital drivers toward the development of a country's economy in achieving growth and sustainability, most especially to reinvigorate people and boost economic activity, according to the European Chamber of Commerce of the Philippines (ECCP). ECCP Southern Mindanao Business Council Chairman Antonio Peralta emphasized the role of urban and regional planning in the country to address the long-standing discussions about economic growth and prosperity of the country. "Urban and regional planning aims to include public awareness on how urban and regional planning plays a crucial role in overall development of the country," said Peralta during the ECCP online event titled "Urban and Regional Planning: Vital Role Toward Economic Growth".

Unemployment rises to 4.8 pct in Jan, 2.37-M jobless

The Philippines' unemployment rate climbed to 4.8 percent in January this year from 4.3 percent in December last year, the state statistics bureau said on Thursday. This was equivalent to 2.37 million Filipino workers who were jobless, the Philippine Statistics Authority said. This was also higher than the 4.5 percent or 2.24 million jobless reported in October 2022. However, the PSA also noted that the jobless rate in January was lower than the 6.4 percent rate or 2.95 million unemployed seen in the same month in 2022.

Philippine gov’t forms inter-agency body on inflation

President Marcos Jr. has formed an inter-agency committee that will focus on the country’s inflation and market outlook, and oversee the government’s response to rising prices. The Cabinet-level Inter-Agency Committee on Inflation and Market Outlook will be co-chaired by Finance Secretary Diokno and National Economic and Development Authority Secretary Balisacan. “It will monitor the demand and supply situation and will report to the President monthly on the market situation. If there is a need to import, we will import,” Diokno said. Other members of the committee are the Departments of Budget and Management (DBM), Trade and Industry (DTI), Interior and Local Government (DILG), and  Science and Technology (DOST). Meanwhile, Diokno said that they had proposed the creation of a body called the Economic Development Group which would be tasked to address the economic challenges in the country.

MANAGEABLE, SUSTAINABLE: NG debt ratio to drop after ’24

The national government’s debt ratio will decline after 2024 if there are no policy reversals or structural breaks and no new substantial debt, according to a report released by the Philippine Institute for Development Studies (PIDS). The study titled, Fiscal effects of the COVID-19 pandemic: Philippine debt sustainability, finds that the national government debt-to-GDP ratio may remain elevated in the medium term, peaking at 66.8 percent in 2024, then gradually declining to 66.4 percent in 2025, 66 percent in 2026 and 65.7 percent in 2027. “So long as the national government does not acquire substantial new debt, it will gradually decline over the succeeding years as the GDP growth rate increases. If these hold true, the baseline scenario shows that the level of debt is still manageable and sustainable,” the report said.

NEDA Board OKs ₱9-T infra projects

The policy-making National Economic and Development Authority Board approved a total of 194 priority infrastructure projects worth about ₱9 trillion. NEDA Secretary Arsenio Balisacan said 123 projects are "new and initiated" in the Marcos administration. Majority of the projects are in physical connectivity and water resources, including irrigation, water supply, and flood management.

Cha-cha purely for sake of investment 'bodes well' for growth — Fitch unit

Amending the 1987 Constitution purely for the sake of opening up the economy to more investments would bode well for the Philippines’ long-term growth prospects, a unit of the Fitch Group said. Fitch Solutions said any pro-business changes “would pose upside risks to our long-term growth forecast” for the economy. Specifically, Fitch Solutions said fixed capital formation, which historically accounts for an average of about 23% of GDP, could see its share of the economy rise ”by several percentage points” over the longer-term if the protectionist provisions of the charter would be amended.

Gender equality, inclusive society pushed for Women’s Day

The world yesterday marked International Women’s Day with the theme, “We for Gender Equality and Inclusive Society,” for this year until 2028. Among those who celebrated the social, economic, cultural and political achievements of women were Vice President Sara Duterte and Carmelita Talusan of the Bureau of Customs at the Ninoy Aquino International Airport (NAIA).“By helping women access economic opportunities, for example, we empower them to be financially independent, improve the standard of living of their families and are better able to ensure the good health and education of their children,” Duterte said. “It is my hope that by working hand in hand in this pursuit, we can provide more digital opportunities for socio-economic growth and gender empowerment, and enable women to rise above any form of online violence affecting their mental and physical well-being,” she added.

P26.6B in subsidies for vulnerable sector allotted amid high inflation —DOF

Subsidies worth P26.6 billion have been allotted for the vulnerable sector amid the high inflation, Finance Secretary Benjamin Diokno said. These subsidies would be in the form of fertilizer and fuel discounts for farmers and fisherfolk, and fuel aid for the transport sector. “We will also maintain Kadiwa. In fact, we will expand the Kadiwa program. We will continue the provision of fuel discounts under the programs for farmers and fisherfolk. Then, we will extend the targeted cash transfer program for 2023,” Diokno said. The Kadiwa program allows consumers to purchase goods at lower than market prices by creating a direct and efficient farm-to-consumer food supply chain. Meanwhile, under the cash transfer program,  a cash assistance of  P500 a month for two months or a total of P1,000 will be given to 9.3 million families.

25 bps hike in BSP rates eyed as inflation decelerates

Economists are considering a 25 basis points increase in the Bangko Sentral ng Pilipinas’ (BSP) key rates later this month after the inflation rate posted a slower year-on-year expansion last February. Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said last month’s inflation rate is a major factor for the next policy rate decision of the central bank following BSP Governor Felipe Medalla’s earlier statement on the possibility of a 50 basis points hike should inflation reach 9 percent. He said any adjustment in the BSP’s key rates also depends on the future Federal Reserve rate hikes after the recent signals from Fed Chair Jerome Powell on possible higher peak in funds rate “especially if the US labor/employment market remains strong.”

Bill condoning CARP loans gets Senate approval

The Senate approved on third and final reading a bill that seeks to free farmers and agrarian reform beneficiaries (ARB) from debt accrued from loans under the Comprehensive Agrarian Reform Program (CARP). The approved Senate Bill 1850 seeks to condone all principal and interests of loans from the award of agricultural lands under the CARP as of Dec. 31 last year.

Finance chief backs additional imports of rice, corn, sugar

The Department of Finance (DoF) is recommending additional imports of rice, corn, sugar, pork, and other key commodities this year to address an expected supply deficit and to tame prices. “The total rice deficit of the country is estimated at 1.8 million metric tons (MT) or 10.4% of demand this year. This rice deficit, which is equivalent to 42 days, must be met with additional buffers in anticipation of typhoons that could destroy potential harvest,” Finance Secretary Diokno said at a sectoral meeting with President Ferdinand R. Marcos, Jr.

Meralco to implement staggered hike in generation strike

The Energy Regulatory Commission (ERC) has approved the proposal of Manila Electric Co. (Meralco) to stagger the collection of an estimated P1.1 billion in generation charges over the next two months to cushion its impact on consumers. “In its letter, Meralco advised that the deferral of P1.1 billion will result in an increase of P0.62/kilowatt-hour (kWh) in its total rate for March and April 2023. This total rate is less than the expected increase of about P0.92/kWh plus other adjustments for VAT (value-added tax) and systems loss for the February supply month,” the ERC said in a separate statement. The regulator said a typical Meralco residential customer consuming 200 kWh will see a total rate increase of P1.11/kWh, when other billing components, such as systems loss and taxes, are included.

House approves rightsizing bill on 2nd reading 

The House of Representatives approved on second reading a bill seeking to rightsize the bureaucracy to improve the delivery of government services. Lawmakers voted by voice to pass House Bill No. 7240 or the National Government Rightsizing Act, one of the House’s priority bills. The bill grants the President of the Philippines the authority to rightsize the different agencies of the Executive branch. Under the bill, the President can scale down or eliminate functions, programs and projects “that could be better carried out or undertaken by the private sector or have already been devolved to LGUs (local government units).” The President can also transfer or integrate functions from one agency to another.

PPA to amend guidelines on container registration

The Philippine Ports Authority (PPA) has agreed to amend implementing operational guidelines on a proposed regulation requiring  the registration and monitoring of containers, according to the Anti-Red Tape Authority (ARTA). ARTA said in a statement PPA also  signified that the implementing operational guidelines of  Administrative Order 04-2021  will be subjected to a pilot implementation and will be amended accordingly to address any issues and concerns that may arise. This after ARTA gave the regulatory impact submission (RIS) of PPA a good practice rating, garnering a score of 36 out of 40. This indicates the RIS has elements where analysis or the process were not of exceptional quality and could have been improved.

BCDA seeks bidders for P1B solar project

The Bases Conversion and Development Authority (BCDA) is seeking private partners to establish a large-scale solar photovoltaic power plant in New Clark City. The BCDA is inviting  interested private companies to participate in the bid for the long-term lease of a 37-hectare property at the northernmost portion of New Clark City, and the development of a solar farm with a capacity of at least 25 megawatts and an investment of at least P1 billion. “BCDA is pushing for the development of sustainable energy sources in New Clark City. This solar farm is one of the crucial projects in New Clark City as it will supplement energy sources and lower energy costs for our locators, while also ensuring reduced carbon emissions,” said Aileen  Zosa said, BCDA president and chief executive officer.

Marcos eyes permanent Kadiwa stores nationwide

The government is eyeing permanent locations for Kadiwa centers nationwide to help Filipinos cope with the rising prices of food and other commodities, President Marcos said. “We are thinking of evolving it – not this type of pop-ups, but to have permanent Kadiwa centers in different local government units. We are thinking about where to put it,” Marcos told journalists after leading the launch of the Kadiwa ng Pangulo para sa Manggagawa in Quezon City. The latest Kadiwa outlet at the Trade Union Congress of the Philippines office in Quezon City is part of the continuing expansion of Kadiwa centers nationwide to give Filipino farmers, fisherfolk and micro, small and medium enterprises (MSMEs) an opportunity to generate more income through direct farm-to-consumer trade, Marcos said. He said the initiative was also part of his administration’s program to cushion and counter the effects of rising inflation.

Dollar reserves retreat as government paid foreign debts

The Philippines’ dollar reserves were trimmed in February after some of the funds were used to bankroll foreign currency debt payments. In a statement on Tuesday, the Bangko Sentral ng Pilipinas reported the gross international reserves settled at $99.3 billion as of end-February. This was lower by 1.4% month-on-month. The central bank attributed the retreat to debt payments and the declining value of gold.

BSP: Inflation, market IAC to ease pressure on prices

The Bangko Sentral ng Pilipinas (BSP) believes the creation of the Interagency Committee (IAC) on Inflation and Market Outlook (IMO) can help address the supply-side issues of rising commodity prices. “This is okay [creation of IAC-IMO]. After all, the problems that have to be addressed are on the supply side, which can’t be cured by exchange rate and monetary policy,” Medalla said. The National Economic and Development Authority (Neda) also clarified that the IAC-IMO will not be placed under the Neda Board. The IAC will be under the newly-formed Econ Development Group (EDG). The findings and recommendations of the IAC will also be presented to the EDG, which will make recommendations to the President. 

DOF move vs inflation gets Marcos’s OK

PRESIDENT Ferdinand R. Marcos Jr. has backed the proposed measures of the Department of Finance (DOF) to address high inflation. The Chief Executive met with economic managers in Malacañang last Tuesday to discuss how to mitigate the current effects of the rising cost of living, particularly through non-monetary policy measures. In a short-message sending service, Presidential Communication Office (PCO) Secretary Cheloy Velicaria-Garafil said the President approved “in general” the list of interventions submitted by the economic managers. Finance Secretary Benjamin E. Diokno said among their proposed measures is fast- tracking the release of imported food commodities from the Bureau of Customs (BOC); the creation of the new Inter-Agency Committee on Inflation and Market Outlook; and the expansion of the government Kadiwa program, which allows agriculture suppliers to directly sell their products to consumers.

Meralco hikes generation charge during dry season

The Manila Electric Co. (Meralco) announced that it may raise the generation charge by P0.92 per kilowatt-hour starting this month until May to recover P1.1 billion in generation costs due to the Malampaya shutdown. According to the Energy Regulatory Commission (ERC), a typical household consuming 200 kWh may expect a total rate increase of P1.11 per kWh once other billing components are included, such as taxes and system loss charge. Meralco said that it had proposed to the ERC that the increase be implemented on a staggered basis to help cushion the impact on millions of customers. A P0.52 per kWh generation charge hike may take effect this month. This will be raised to P0.62 per kWh once taxes and system loss are taken into account. The remaining P0.40 per kWh increase would be spread out in April and May.

PPA’s container tracking system gets Arta nod

The Philippine Port Authority’s (PPA) planned container tracking and registration system has garnered the second highest positive rating possible from the Anti-Red Tape Authority (Arta), hurdling a crucial piece of regulatory requirement needed for its implementation. The Arta said on Wednesday that the final regulatory impact statement (RIS) conducted by the ports authority concerning its Trusted Operator Program-Container Registry Monitoring System (TOP-CRMS) garnered a 36 out of 40 in their scoring system, which is equivalent to a “good practice” rating.

IATA Releases 2022 Airline Safety Performance

Accidents are still rare in aviation, with just five fatal accidents among 32.2 million flights in 2022, according to the latest International Air Transport Association (IATA) Safety Report for global aviation released last night, March 7.The number of fatal accidents and the fatality risk also decreased, compared to 2021 and to the five year average (2018-2022), the report showed. “But even though the risk of flying is exceptionally low, it is not risk-free,” Willie Walsh, IATA’s Director General, acknowledged.

Senate panel prescribes equipment upgrade and technical capacity to end airport glitches

SEN. Grace Poe, presiding chairperson of the Senate Committee on Public Services, pressed concerned authorities to “improve the technical capacity” of the Civil Aviation Authority of the Philippines (CAAP), stressing the urgent need to “upgrade critical equipment” in a determined bid to “prevent future glitches” at all airports in the country. “These should be complemented with the rollout of sufficient engineering guidelines and training of accredited engineers who will man the system,” the senator stressed in endorsing the Senate committee report on the New Year’s Day air traffic shutdown. The lawmaker lamented that the January 1 “systems failure” was indeed “a confluence of factors and errors,” noting that “experts likened it to the planets aligning albeit with an unfortunate consequence.”

DOTr limits authority of attached agencies

Administrative and financial functions over projects were stripped off from some agencies under the Department of Transportation (DOTr) in line with good governance. A Department Order dated Feb. 28 showed that the DOTr removed several functions from the MRT-3, DOTr Regional Offices in Cordillera Autonomous Region and CARAGA, Land Transportation Office, Land Transportation Franchising and Regulatory Board, and Philippine Railways Institute."We at DOTr will craft policies and procedures to implement good governance practices which will improve delivery of services to the public," Transportation Secretary Jaime Bautista said in a mobile message. 

Senate, House launch online platform for public access to records, services

The public can now access legislative records, information and services from both Houses of Congress in one online platform called “eCongress,” House Speaker Ferdinand Martin Romualdez said. “e-Congress will provide updates on the status of bills, and resolutions and report legislative undertakings to inform the public and encourage citizen participation,” Romualdez said during the online platform launch.

SWS: 48% Filipinos confident on economy improving in 2023

Almost half or 48% of Filipino adults remain optimistic that the country’s economy will improve in the next 12 months, a Social Weather Stations (SWS) survey released on Thursday showed. According to the SWS survey conducted through in-person interviews from Dec. 10 to 14 last year, only 9% of respondents see the economy worsening while 33% felt neutral about the issue. This data totaled a net economic optimism score (percentage of economic optimists minus percentage of economic pessimists) of +40, a rate considered “excellent” by the SWS.

House set to approve 'con-con' bill; Zubiri says not a Senate priority

The House of Representatives is expected to approve on third and final reading the bill operationalizing the call for a constitutional convention to amend the 1987 Constitution by next week. The Senate however does not see it as a priority. Zubiri said charter change is not a priority of the Senate.

Rise in ocean plastic pollution 'unprecedented' since 2005

Plastic pollution in the world's oceans has reached "unprecedented levels" over the past 15 years, a new study has found, calling for a legally binding international treaty to stop the harmful waste. Ocean plastic pollution is a persistent problem around the globe -- animals may become entangled in larger pieces of plastic like fishing nets, or ingest microplastics that eventually enter the food chain to be consumed by humans .Research published on Wednesday found that there are an estimated 170 trillion pieces of plastic, mainly microplastics, on the surface of the world's oceans today, much of it discarded since 2005.

PHL motor vehicle output up 60.3% in January

Motor vehichle production rose 60.3% year on year in January, a growth rate that topped the region, according to the ASEAN Automotive Federation (AAF). AAF said on its website that Philippine motor vehicle production in January hit 8,886 units, up from 5,543 a year earlier. The other growth rates reported by AAF were Malaysia’s 36.2%, Indonesia’s 10.7%, Thailand’s 7%, Vietnam’s -53.1%, and Myanmar’s -98.7%. Total motor vehicle production by the six ASEAN countries in January was 370,899 units, up 9.3% from a year earlier. The Philippines also posted the highest sales growth in January at 42.1% year on year, after shipping 29,499 units.

DoE seeks Japanese participation in PHL decarbonization plan

The Department of Energy (DoE) said it is in talks with Japanese companies interested in the government’s decarbonization program and renewable energy projects. “Our government is always keen to work with the private sector on projects which would be mutually beneficial for both parties. With this, our gradual transition to a low-carbon economy entails the diversification of our energy sources, especially cleaner and indigenous sources, such as renewable energy, to intensify decarbonization efforts across all economic sectors as part of our broader national strategy,” Energy Secretary Raphael P.M. Lotilla said in a statement on Thursday.The Philippines is aiming to become a low-carbon economy through renewable energy and greater use of indigenous energy sources.