NEDA mulls e-motorcycle tax breaks as key EV incentives issue
The executive order modifying the tariff rates for Electric Vehicles will be up for review, with the possible inclusion of e-motorcycles in the list of vehicles that benefit from zero percent import duty. NEDA chief Arsenio Balisacan had earlier said that Executive Order 12, series of 2022—the executive issuance granting tax breaks to several types of EVs—will have its mandatory review beginning February 21.
Moody’s Analytics hikes PHL growth forecast
Moody’s Analytics raised its growth projection for the Philippines to 5.8% this year from 5.4% it gave in January, as strong demand for electronics could spur export growth in Asia-Pacific economies. It expects the Philippines to be the third-fastest performing economy in the region this year after India (6%) and Vietnam (6%). It is also followed by China (5%) and Indonesia (4.9%). However, Moody’s Analytics’ forecast is below the government’s full-year gross domestic product (GDP) growth goal of 6.5-7.5% this year.
Marcos government has P2.42 trillion worth of PPP projects in pipeline
The government of Philippine President Ferdinand R. Marcos, Jr. has 117 public-private partnership (PPP) projects in the pipeline worth P2.42 trillion, according to the PPP Center, in a boost to his Build Better More infrastructure campaign. Out of the total, 55 are related to transportation such as airports, rails and port terminals. Twenty-one cover property development and 14 are for road projects.
NEDA warns of legislated wage hike impact on MSMEs
Micro, small, and medium-sized enterprises (MSMEs) may not be able to cope with the proposed minimum wage increase now under consideration in Congress, the National Economic and Development Authority (NEDA) said. The Senate on Monday approved on third and final reading a bill that seeks to impose a P100 across-the-board minimum wage hike for private sector workers. The last legislated national wage hike was in 1989. Since then, pay rates have been decided by regional wage boards.
Bautista commits to sustain Philippine compliance to international aviation standards
Ongoing airport upgrades and the recent successful bidding for the modernization of the Ninoy Aquino International Airport (NAIA) are part of the Philippine government’s efforts to sustain compliance to international aviation standards, Department of Transportation Secretary Jaime J. Bautista said at the opening of the Philippine Pavilion at the Singapore Airshow 2024 last February 20. He also invited aviation schools and air cargo integrators to consider locating to the Philippines.
German firm eyes PH for ‘flying cars’
German air mobility firm Lilium is mulling to establish in the Philippines its first Southeast Asia operation network for its all-electric vertical take-off and landing (eVTOL) jets. Lilium and local aviation services company PhilJets will sign a memorandum of understanding (MOU) at the Singapore Airshow on Tuesday afternoon for the strategic collaboration. Under the MOU, PhilJets is eyeing to buy an initial 10 Lilium jets.
Philippine consumer spending may grow 5.5% this year — S&P
Consumer spending in the Philippines would probably grow by 5.5% this year, still below the pre-coronavirus pandemic level of 6%, because a recovery in household activity could take a few more quarters, S&P Global Ratings said on Tuesday. Economies across the world are experiencing a slowdown in household spending as central banks raised borrowing costs to tame red-hot inflation.
Analysts: BSP may cut rate starting May
The Bangko Sentral ng Pilipinas (BSP) is widely expected to gradually cut key rates this year starting as early as May, with prices likely to be under control, analysts said on Monday. “Talk of a need to keep monetary policy settings sufficiently tight is completely gone, with members committing merely to keep them unchanged in the near term amid the improvement in inflation conditions,” Pantheon Chief Emerging Asia Economist Miguel Chanco said.
Foreign ownership of universities expected to expand PHL schools’ networks
More foreign universities will also expand Philippine universities’ partnership networks resulting in the exchange of knowledge and research practices, according to Gael McDonald, a senior consultant with Arizona State University and former president of RMIT University Vietnam. “You establish jobs, you attract students, you contribute to the local economy, you pay taxes and should get tax incentives which should always be quite favorable,” she testified at a Senate committee on Tuesday.
Maharlika in talks to develop three ecozones
The Maharlika Investment Corp. (MIC) is in talks to support the development of three economic zones (ecozones) in Luzon and Mindanao. These include an industrial ecozone north of Luzon, a medium-sized agri-industrial ecozone south of Metro Manila, and another ecozone in Mindanao. The MIC is planning to officially announce the ecozones by the third quarter.
House OK’s financial literacy bill
The House of Representatives has approved on second reading House Bill No. 9875, a proposed measure that requires employers to establish a financial literacy program for all their employees. The bill mandates that the program include topics such as behavioral finance, fund development, insurance, and retirement planning. According to the Bangko Sentral ng Pilipinas’ 2021 financial inclusion survey, only 2% of Filipinos can correctly answer basic financial literacy questions.
PHL demographics may be suitable for AI software development — Microsoft
The head of Microsoft Corp.’s Asia operation, Microsoft Asia President Ahmed Mazhari, shared that the Philippines has favorable demographics for becoming a potential hub for artificial intelligence (AI) software. “It’s very young and global, and speaks the world’s language. We are represented in every country in the world through service workers so there is huge potential,” Josh P. Aquino, head of PR and communications at Microsoft Philippines, also noted.
PhilHealth urged to halt premium contributions
A Congressman wants to suspend premium contributions to state-run Philippine Health Insurance Corp. (PhilHealth) to provide workers financial relief amid the agency’s excess funds. Marikina City Rep. Stella Luz A. Quimbo said in House Resolution No. 1595 that suspending PhilHealth premium contributions would result in a P400 monthly wage increase for non-agricultural workers in the capital region.
Energy expected for W. Visayas
A total of 258 megawatts (MW) of capacity is expected to be generated from the committed generating plants located in the Western Visayas islands of Panay and Guimaras, the Department of Energy (DoE) said. “Our committed projects to be coming in the next few years… most of these are renewable energy,” Irma C. Exconde, director of the DoE Electric Power Industry Management Bureau, said.
PPP Code to lure more unsolicited proposals
The Public-Private Partnership (PPP) Center expects more unsolicited proposals for infrastructure projects with the approval of the PPP Code. PPP Center executive director Ma. Cynthia Hernandez said the PPP Center has under review 117 projects in the pipeline worth P2.5 trillion as of early February, the bulk of which are in the transportation sector.
CIAC revenues seen hitting P1B
The Clark International Airport Corp. (CIAC) sees the company hitting the P1-billion revenue mark in two years, according to its president Arrey Perez. He shared the agency looks forward to attracting more locators in the 1,141-hectare area yet to be privatized within the 2,367-hectare Clark Civil Aviation Complex. CIAC is focusing on commercial and industrial park development in small pieces of properties within the 270-hectare property near the airport.
Philippines’ Clark airport eyes slice of global aerospace pie
Clark airport developer Berthaphil is hoping to attract more global aerospace companies as part of a wider effort by the government of the Philippines to bring in investment from the sector. At the Philippine Aviation pavilion at this year’s Singapore air show, company chair Michael Herman shared that there is a “big push” from the government to boost Clark’s profile as a viable secondary airport to Manila, including improving its connectivity through new passenger and cargo rail links.
Clark Airport Offers Space and Skills to Aviation Tenants
Multiple agencies in the Philippines are joining forces to attract aerospace companies to get established at Clark International Airport (CRK). The focus of the campaign to make more use of the extensive space at the former U.S. military base is mainly on attracting maintenance, repair, and overhaul companies, manufacturers, business aviation services providers (including FBOs), airlines, logistics firms, and training organizations. The campaign leaders can be found at the Singapore Airshow’s new Philippine Aviation Pavilion. They include the Philippine Department of Transportation, the country’s Civil Aviation Authority, and Clark International Airport Corporation.
Philippine wealth fund to prioritize energy projects
The Philippine energy sector will take the bulk of the initial investments of the country’s first sovereign wealth fund, according to the head of the Maharlika Investment Corp. “Energy will be the first,” Maharlika Chief Executive Officer and President Rafael D. Consing, Jr. told a forum on Monday. “Energy will take in the bulk of the initial investments.” He said energy, physical and digital connectivity are key to “multigenerational growth.” President Ferdinand R. Marcos, Jr. has touted the Maharlika Investment Fund as an engine to drive economic development through strategic investments both here and overseas. He has said his government considers the wealth fund as a means to cut dependence on foreign loans.
Revenue regulations for EoPT expected by April
The Bureau of Internal Revenue (BIR) said it will release seven revenue regulations (RR) to clarify provisions of the Ease of Paying Taxes (EoPT) Act by April. BIR Deputy Commissioner for legal Marissa O. Cabreros told the House ways and means committee on Monday that “Seven RRs are in the pipeline to implement the Ease of Paying Taxes Act, and they are arranged per topic.” The RRs for Republic Act (RA) No. 11976 or the Ease of Paying Taxes Act are scheduled for release on April 21, Ms. Cabreros told the legislators. RRs are issuances signed by the Finance Secretary, on the recommendation of the BIR Commissioner, specifying rules and regulations for the effective implementation of the National Internal Revenue Code (NIRC).
Government to pitch Clark as new aviation hub
The Philippines will pitch Clark International Airport as the next Asian hub for aerospace investments in one of the largest aviation events this year. Led by the Department of Transportation (DOTr), the Philippine delegation will hold a series of talks with aviation investors from around the globe beginning today, Feb. 20, at the Singapore Airshow 2024. The DOTr and Clark International Airport Corp. (CIAC) will pitch the viability of the Clark airport to maintenance, repair and overhaul (MRO) providers. The agencies will also try to convince additional airlines to mount flights from the airport based 80 kilometers away from Manila.
NAIA project eyed to jumpstart P40 billion Maharlika investments
The Maharlika Investment Corp. is setting its sights on the recently awarded Ninoy Aquino International Airport (NAIA) rehabilitation as one of about 10 projects where it intends to invest the MIC’s P40-billion funding this year. In an interview with The STAR, MIC president and CEO Rafael Consing Jr. said the sovereign wealth fund has a thick pipeline of projects to explore as it hits the ground running in its first year of operation. A third of the P125 billion initial capitalization of the fund will be committed to energy, transportation, infrastructure and agro-forestry for 2024.
NAIA winning bidder faces negative profit outlook
The 82.16% revenue share offered by the San Miguel-led consortium to the government could lead to lower annual profits from the Ninoy Aquino International Airport (NAIA) even after finishing expansion works, financial research firm CreditSights said. “We are surprised at the high proposed revenue share of 82.16%, which we expect to result in modestly negative annual EBITDA (earnings before interest, taxes, depreciation, and amortization) generation from the airport even post the expansion works,” the financial research firm said in its outlook report for San Miguel Corp. (SMC), e-mailed to reporters on Monday. “We are alarmed that the revenue share that SMCC [SMC SAP & Co. Consortium] bid for and is willing to pay to the government is much higher than the bids placed by its competing bidders,” it added.
Ecozone investments up 19 percent in 2 months
Investments approved by the Philippine Economic Zone Authority (PEZA) grew at a robust pace in the first two months of the year, making it on track with its investment approval targets for the year. In a statement, PEZA said approvals in January and February went up by 18.7 percent to P12.1 billion, higher than the P10.194 billion in the same period last year. “The significant upswing in our investment performance within two months underscores our commitment to achieving our target of P250 billion investments for this year,” PEZA director-general Tereso Panga said.
Government aligning investment bid for renewable energy, minerals, farms
The Economic Development Group (EDG) is now aligning government efforts to bring in more critical investment on renewable energy, processing of critical minerals and agriculture. In the EDG’s fifth meeting on Monday, Office of the Special Assistant to the President for Investment and Economic Affairs and EDG Chairperson Secretary Frederick D. Go said he wants to prevent redundancies in the government initiatives to attract more investments. Among the highlights of the meetings was the agreements of concerned government agencies to address the bottlenecks and expedite processes for renewable energy projects.
Marcos government has P2.42 trillion worth of PPP projects in pipeline
The government of Philippine President Ferdinand R. Marcos, Jr. has 117 public-private partnership (PPP) projects in the pipeline worth P2.42 trillion, according to the PPP Center, in a boost to his Build Better More infrastructure campaign. Out of the total, 55 are related to transportation such as airports, rails and port terminals. Twenty-one cover property development and 14 are for road projects, PPP Center Executive Director Cynthia C. Hernandez said at a forum on Monday. “We have the bulk of the projects in the transportation sector because we are doing a lot of catching up,” she said. “We have also been slowly building up our pipeline in other priority sectors, such as solid waste management, health, water and information and communication technologies.”
House OK’s financial literacy bill
The House of Representatives has approved on second reading a proposed measure that requires employers to establish a financial literacy program for all their workers and employees. During the plenary session on Tuesday, House Bill No. 9875, the proposed Personal Finance Education in the Workplace Act, was approved through voice voting. As a proposed amendment to the Labor Code of the Philippines, the bill mandates that the program include topics on behavioral finance, savings, fund development, debt management, investment, insurance, and retirement planning.
NEDA warns of legislated wage hike impact on MSMEs
Micro-, small- and medium-sized enterprises (MSMEs) may not be able to cope with the proposed minimum wage increase now under consideration in Congress, the National Economic and Development Authority (NEDA) said. “One of the things we’re looking at is affordability levels, especially for MSMEs,” NEDA Undersecretary Rosemarie G. Edillon told reporters late Monday. The Senate on Monday approved on third and final reading a bill that seeks to impose a P100 across-the-board minimum wage hike for private sector workers. The last legislated national wage hike was in 1989. Since then, pay rates have been decided by regional wage boards.
Finance Secretary and Chair of the Intergovernmental Group of Twenty-Four (G-24) Board of Governors Ralph G. Recto has urged member states to reclaim their lost momentum and make a powerful comeback in the race to 2030 through heightened cooperation and scaled-up support from international financial institutions to weather global challenges. “We must keep in mind that 2030 marks a universal deadline for all nations to make substantial progress in eradicating poverty, ending hunger, and protecting the environment,” Secretary Recto said in his opening remarks for the G-24 Technical Group Meeting (TGM) on February 21, 2024.
Climate change risks threaten Asia’s progress on sustainable development goals
Risks stemming from climate change are preventing Asia and the Pacific countries from making progress on sustainable development goals (SDGs), according to a joint report by multilateral agencies and institutions. “The impacts of climate change threaten to increase hunger and poverty and are contributing to a reversal of sustainable development gains achieved by countries in the Asia-Pacific region over recent decades,” the Economic and Social Commission for Asia and the Pacific (ESCAP), United Nations Development Programme (UNDP) and Asian Development Bank (ADB) said. According to the “People and Planet: Addressing the Interlinked Challenges of Climate Change, Poverty and Hunger in Asia and the Pacific” joint report, the majority of climate-related human displacement occurs within the region.
House set to tackle wage hike bills next week
The House of Representatives is set to tackle bills seeking to hike the minimum wage by P150 next week despite concerns this would pose a significant risk to inflation and discourage the entry of foreign investments. “We are prepared to tackle pending bills in the House related to minimum wage increases,” Marikina City Rep. Stella Luz A. Quimbo told a news briefing on Wednesday. House Bill (HB) No. 7871, authored by Deputy Speaker and Party-list Rep. Raymond Democrito C. Mendoza, and HB No. 514, filed by Cavite Rep. Ramon B. Revilla III, are proposing a P150 across-the-board wage increase for all private sector workers, whether agricultural or non-agricultural.
The country posted a balance of payments (BoP) deficit of $740 million in January — the biggest in 11 months — as the government paid its foreign debt, according to data released by the Bangko Sentral ng Pilipinas (BSP) late Monday. It was a reversal of the $3.08-billion surplus a year ago and $642 million in December. “The BoP deficit in January 2024 reflected outflows arising mainly from the National Government’s (NG) payments of its foreign currency debt obligations,” the central bank said in a statement.
DBM bats for direct procurement from suppliers deemed ‘reliable’
THE Department of Budget and Management’s (DBM) Procurement Service (PS) is proposing two new methods to streamline government procurement, including the direct purchase of goods from suppliers with acceptable track records and the direct purchase of goods used in research and development. Dennis S. Santiago, executive director of the PS, proposed the two methods in a letter to Senator Juan Edgardo M. Angara, who heads the Senate Finance Committee. The letter had been provided by Mr. Angara’s staff.
Maharlika studying foreign JVs to build rural telecom towers
THE Maharlika Investment Corp. (MIC) said it is studying the potential of joint ventures (JVs) with foreign investors to build telecommunications towers in rural areas. Maharlika Chief Executive Officer and President Rafael D. Consing told reporters on the sidelines of an event on Wednesday that the rural segment is difficult for incumbent telecom firms to invest in because they are reluctant to risk their own capital, opening the door for Maharlika to step into the gap. “One of the strategies that we’re looking at is to help rollout and support the rollout of telecom towers in rural areas,” he said.
Bill reducing stock transaction tax approved by House plenary
THE House of Representatives approved on Wednesday a bill seeking to reduce the tax on stock transactions to 0.1% from 0.6% currently. Legislators during the plenary session approved House Bill No. 9277, or the proposed Capital Markets Efficiency Promotion Act, through voice vote. Reducing the tax on stock transaction is expected to improve the competitiveness of the Philippine stock market within the Association of Southeast Asian Nations (ASEAN), according to bill sponsor and Party-list Rep. Ray T. Reyes.
PIDS: Managing inflation key to economic stability
The Philippine Institute for Development Studies (PIDS) said managing inflation soundly will be key to maintaining macroeconomic stability, and this will require “strategic interventions to mitigate risks while capitalizing on growth opportunities.” “Central to this approach is the timely execution of government budgets in infrastructure and socio-economic projects, alongside encouraging private sector investments,” the government-led think tank said. Dr. Margarita Debuque-Gonzales, former PIDS senior research fellow, said inflation rate this year would fall within the target range of 3 percent.
House eyeing Cha-cha okay before Holy Week
The House of Representatives will convene as the Committee of the Whole starting Monday next week to deliberate on proposed amendments to “restrictive” economic provisions of the Constitution, which a lawmaker said may only take three days to complete. On the motion of Iloilo Rep. Janet Garin, the House leadership agreed on Tuesday night to convene as a Committee of the Whole to fast-track the discussions, which were originally scheduled to kick-off yesterday at 1 p.m. The hearing was moved to Monday because of the availability of resource persons who will be invited to shed light on the provisions in question, according to Marikina Rep. Stella Quimbo, senior vice chair of the House Committee on Appropriations.
PEZA to promote mineral processing ecozones
The Philippine Economic Zone Authority (PEZA) is pushing for the development of mineral processing ecozones to encourage value addition in mining. Tereso Panga, PEZA director-general, told reporters this is in line with the stand of the Office of the Special Assistant to the President for Investment and Economic Affairs that tagged mining as one of the five priority sectors it is promoting. Panga said the development of mineral processing zones is also in conjunction with the lifting of the moratorium on new mining projects in 2021 which was stalled by the pandemic.
DOT bats for more air seats, flights
The Department of Tourism (DOT) said it recorded a million foreign tourist arrivals to date, an auspicious start as the agency targets 7.7 million tourists this year. DOT Secretary Christina Frasco told reporters at the first general membership meeting of the Philippine Tour Operators Association in Makati yesterday the government is eyeing more flights and air seat entitlements with other countries, including direct air connectivity with India. This will help lift the standing of the Philippines from sixth in the most number of air seats in the region while giving tourists more access to the country’s tourism sites.
‘Not the right time’ to raise wages — NEDA
The proposed P100 increase in the minimum wage of private workers may stoke inflation, hurt gross domestic product (GDP) growth and increase unemployment, National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said. “Our position at NEDA is that it’s not the right time,” he said during the SNAP Conversations webinar on Thursday. “We are working very hard to sustain the momentum in reducing inflation to the target of 2-4% and the last thing we want is to reverse those gains we have achieved for the last several months.”
Energy supply for the year sufficient
Power supply in the country for the rest of the year is deemed enough despite the expected effects of El Niño, according to the Department of Energy (DOE). Still, the DOE said government agencies are leading the push for energy efficiency practices and conservation. “There is adequate supply but we will continuously monitor. For example, the dams… they have good and adequate water supply but we’ve had to limit also the use for power because the agriculture sector has had an increased need for irrigation. So, we’re monitoring closely the rate at which the usage for irrigation is also depleting the volumes for power use,” Energy Secretary Raphael Lotilla told reporters on the sidelines of the business-to-business matching event hosted by the DOE in partnership with the United States Agency for International Development in Taguig City yesterday.
Govt streamlines permitting process of OSW projects
The Department of Energy (DOE) and the Department of Environment and Natural Resources (DENR) signed a memorandum of agreement (MOA) streamlining permitting procedures for offshore wind (OSW) projects. Energy Secretary Raphael Lotilla said during a business-to-business matching event hosted by the DOE in partnership with the United States Agency for International Development in Taguig City yesterday the MOA is especially useful for pioneering power technologies like OSW. “…Because each of this service contract, the developers would need at least two years of wind data so that’s part of the pre-development stage and that’s what DENR is trying to facilitate by clearly indicating what would be needed in the pre-development stage,” Lotilla said.
‘SMEs can absorb P100 wage hike’
Tax incentives given to small and medium enterprises (SMEs) will enable them to “absorb” the proposed P100 daily wage hike for minimum wage earners, Sen. Sherwin Gatchalian said yesterday. He said the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law, the second package of the Comprehensive Tax Reform Program, reduced corporate income tax rates to 20 from 30 percent. He said SMEs actually increased their gross earnings to around 12 percent due to the lowering of their income tax, which will enable them to give the P100 a day wage increase.
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