PH inflation slowed to 2.8% in January
Inflation eased to 2.8 percent in January, putting price growth well within the government’s 2 to 4 percent target range. Last month’s reading was softer than the 3.9 percent recorded in December, the Philippine Statistics Authority reported Tuesday.
PH eyes aviation investments in Singapore airshow
The Philippines’ late February debut in the Singapore Airshow—the premiere international aerospace and defense exhibition in the Asian region—promises to promote the Philippines’ blooming aviation sector, bring more investments to the country, and entice more aerospace firms to mount flights in Clark. The Philippine Pavilion in the airshow is the collaborative effort of the Department of Transportation, the European Chamber of Commerce of the Philippines, the Clark International Airport Corporation, the Clark Development Corporation, the Asian Business Aviation Association, the Bases Conversion and Development Authority, and Berthaphil unit operating at the Clark International Airport.
Envoys, business leaders laud launching of 'Doing Business in Phl' 2024 guidebook
Cognizant of the need for a comprehensive and transparent process of doing business in the Philippines, the ECCP and Divina Law partner unveiled the Doing Business in the Philippines 2024 Guidebook 5th Edition. The guidebook provides foreign investors an overview on investment opportunities in the Philippines, including business registration, tax, and available industries.
Finance Secretary Ralph G. Recto has called for rapid government digital transformation and collaboration among public leaders towards this goal. Secretary Recto recognized emerging digitalization measures such as the Public Management Development Program; new electronic payment and filing channels in the Bureau of Customs, Bureau of Internal Revenue, and the Securities and Exchange Commission; and the Bureau of Treasury’s move to facilitate treasury bond selling on digital devices.
DOE approves creation of committee to sustain 2032 nuclear power target
The Department of Energy (DOE) is creating a nuclear committee to help achieve its target of 2,400 megawatts of nuclear capacity as early as 2032. Under Department Order No. 2024-01-01 released by the agency Thursday, Energy Secretary Raphael Lotilla approved the creation of the DOE Nuclear Energy Program Coordinating Committee to ensure active participation in the Nuclear Energy Program Inter-Agency Committee. Nuclear energy is part of the 2023 to 2050 Philippine Energy Plan.
NEDA sees new taxes as necessary to achieve PHL transformation goals
NEDA cited the need for new tax measures to achieve fiscal consolidation, which will keep the Philippines on track with its plans for extensive economic and social transformation.“The proposed tax measures, which include excise taxes on sweetened beverages, VAT on digital service providers, and a new fiscal regime for mining, are expected to generate over P900 billion in additional revenue from 2024 to 2028,” NEDA noted in the Philippine Development Report 2023.
BoC at 122: Marking milestones with partnerships, digital transformation
The Bureau of Customs (BoC) celebrates its 122nd founding anniversary, marking the beginning of a transformative era with a focus on digitalization, trade facilitation, and intensified efforts against smuggling. As part of its anniversary celebrations, BoC joined global customs administrations in commemorating the International Customs Day. BoC Commissioner Bienvenido Rubio urged the fortification of existing partnerships and forging of new ones to advance collective objectives.
No united stand from PHL biz on Cha-cha debate
Sergio R. Ortiz-Luis Jr., President of the Employers Confederation of the Philippines (ECOP), said the Philippine business community has no “unified stand” on the proposed charter change, largely due to confusion stemming from a wide array of proposals. Ortiz-Luiz said any amendments should be geared toward ensuring that “erratic and ever-changing” policies of the government are made consistent.
‘Economic provision revisions will not solve PH woes’
Former Chief Justice Hilario Davide Jr. yesterday said that there is no compelling reason why the so-called restrictive economic provisions of the 1987 Constitution should be amended. During the first day hearing of the Senate sub-committee on Constitutional Amendments and Revision of Codes on Monday, Davide said what the country needs is the strict implementation of “its principles and state policies.”
‘House, Senate must act as one body to amend 1987 Charter’
The Senate and the House of Representatives voting separately to amend the Constitution is disregarding “the fact that Congress is not acting as a legislative body, Congress is acting as a constituent assembly,” former Supreme Court Justice Vicente Mendoza said yesterday. Mendoza said amending the Constitution is not the work of Congress but a non-legislative function of a constituent assembly.
NAIA bid winner to be announced this month
The DOTr is nearing its announcement of the winning bidder for the operation and maintenance of the Ninoy Aquino International Airport (NAIA) as it aims to conclude all of its reviews by Feb. 14 or 15. DOTr Undersecretary for Aviation and Airports Roberto Lim notes that they will announce the results of technical proposals by February 7 or 8 before proceeding to financial proposals.
DTI to develop farm-to-market supply chain
On February 2, the Department of Trade and Industry (DTI), Department of Agriculture, and National Irrigation Administration signed a memorandum of understanding for the creation of the Integrated Rice Supply Chain Development Program, which seeks to enact measures that would allow the streamlining of processes from rice production to supplying rice in the market. The interagency farm-to-market system aims to strengthen the competitiveness of the domestic rice market and reduce logistics costs for farmers.
Investing in education key to securing jobs in AI age
Investing in Filipinos through education would be crucial in securing their jobs in the age of Artificial Intelligence (AI) and improving the country’s performance in the Human Development Index, according to experts. In the recent launch of the Regional Human Development Report, Thinking Machines Data Science Director for Social Impact and Responsibility Pia Faustino said children must develop critical thinking, creativity, and unique human capabilities that are resilient against AI.
Senate opens RBH 6 hearings amid pause in Chacha war
A Senate subcommittee mandated to tackle Resolution of Both Houses No. 6 (RBH 6) on constitutional amendments opened hearings on Monday, February 5, with its chairman expressing confidence for the productive exchanges on amending economic provisions in the 1987 Philippine Constitution. RBH 6 special chairman Sen. Juan Edgardo Angara expressed gladness that Congress agreed to a cease-fire after heated clashes that marred Charter-change efforts via a divisive People’s Initiative.
PEZA OKs P2-B investments in January, to create 1,337 jobs
The Philippine Economic Zone Authority (PEZA) said it approved 2.21 billion Php in investments in the first month of 2024, which it said is expected to create 1,337 direct jobs. However, the investment approval figure in January 2024 is a decline from the 6.39 billion Php recorded in January 2023. These projects include seven ecozone export enterprises, four IT enterprises, and one facilities enterprise.
Hybridization of off-grid areas pushed
Sen. Sherwin Gatchalian, vice-chairperson of the Senate committee on energy, urged the government to fast-track the hybridization of off-grid areas as the National Power Corp. (NPC) proposed another round of higher power rates in off-grid areas, resulting in a higher electricity rate of P9.7068 per kilowatt-hour or 17.54 percent higher than current rates. The NPC has committed to focusing on hybridization, which is expected to result in savings ranging from P0.75 to P1 per kWh.
Jobless rate may rise to 6.3% this year
The unemployment rate in the Philippines may pick up to 6.3% this year, which could impact consumer spending throughout 2024, according to BMI Country Risk & Industry Research. According to BMI, the strong labor market led to a robust Philippine consumer spending growth in 2022 and 2023, but as major markets slow in 2024, BMI notes they expect some uptick in unemployment rates across the board.
MCC sees ‘terrific’ opportunities for PHL
The Millennium Challenge Corp. (MCC) is seeing “terrific” opportunities for the Philippines, which it says is on the right track after once again being eligible for its aid programs. In December, the MCC Board selected the Philippines as eligible to develop a threshold program, which is a smaller grant focused on policy and institutional reforms. The Philippines’ last threshold program concluded in 2009 and focused on improving anti-corruption across government agencies.
BSP likely to mirror Fed’s ‘wait-and-see’ approach
The Bangko Sentral ng Pilipinas (BSP) is expected to adopt a cautious approach on monetary policy this year, as it will likely wait for the US Federal Reserve to cut rates before starting to loosen policy, according to BSP Governor Eli M. Remolona, Jr. This is after the US Federal Open Market Committee kept interest rates steady for the fourth straight meeting on Thursday, with US Fed Chair Jerome H. Powell saying policy easing is unlikely in March due to mixed economic data.
Economy to fare better in 2nd half
The Philippine economy is expected to fare better in the second half of the year, as easing interest rates could lift consumption and improving external climate may boost trade, according to Moody’s Analytics. Headline inflation is expected to cool down in the coming months due to favorable base effects. However, Moody’s noted that household spending will be under pressure in the first half.
Philippine short selling in short demand 3 months after its launch
After a nearly three-decade wait, traders have been allowed since November to short sell stocks in the Philippines after regulators approved a proposal first made by the Philippine Stock Exchange, (PSE) Inc. in 1996. The PSE is seeking to revive interest in a market where average daily stock transactions have slumped by about 40% in the past decade, and foreign equity investments have sunk for the past six years.
Philippines among top 3 favorable markets for established brands
The Philippines is among the top three most favorable markets for established consumer brands as traditional trade dominates the retail space, according to a report by Bain & Co. In the Philippines, incumbent brands got a bigger market share in eight out of 23 consumer product goods categories which are spirits, wine, bath and shower, oral care, confectionery, edible oils, laundry care, and bottled water. Bain said traditional trade accounted for around 53% of the retail value across the 23 categories in the Philippines.
Infrastructure spending may slow as gov’t pursues fiscal consolidation
Latest data from the Department of Budget and Management (DBM) showed that infrastructure and other capital outlays declined by 29.4% to P56.7 billion in November from P80.2 billion in the same month a year ago. “The decline in infrastructure (in November) is an indication of the government’s problems with its fiscal consolidation. This means that the government’s policy to reduce fiscal deficit and debt accumulation has not been working as expected,” Ateneo de Manila University economics professor Leonardo A. Lanzona noted.
NEDA advocates for enhanced R&D
Rosemarie Edillon, NEDA undersecretary, emphasized the need for more research and development (R&D) outputs and to make these more accessible to investors and markets. The NEDA official said next steps to increase the number of R&D outputs include increasing the number of researchers and developing a good management system for R&D outputs. “We will be pushing for a massive scholarship program to help us reach our target of 500 researchers per million population by 2028,” Usec Edillon said.
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