ECCP at Work

No need to cut growth targets, but gov’t should raise revenue — analysts
“Our 2024 growth forecast is just a bit lower at 5.8%, and with reforms such as the rice tariff rate cut potentially boosting consumption in the Philippines, the possibility for the economy to reach the lower end of the target isn’t zero.” Economic managers have yet to announce whether they will revise fiscal targets for this year. In April, the DBCC cut its gross domestic product (GDP) growth target to 6-7% from 6.5-7.5%, backed by concerns over geopolitical instability and trade disruptions. The National Government’s debt as a share of GDP fell to 60.2% in the first quarter from 61.1% a year earlier, the Treasury bureau reported. However, this is still above the 60% threshold that multilateral institutions deem manageable for developing economies.


Metro Manila building materials price growth decelerates in May
GROWTH in the retail prices of construction materials in the National Capital Region (NCR) eased in May, the Philippine Statistics Authority (PSA) reported. Citing preliminary data, the PSA said the May construction materials retail price index (CMRPI) rose 1%, easing from 1.2% in April and 2.6% in May 2023. Of the seven commodity groups, only the index of carpentry materials posted stronger growth of 0.4% in May, compared with 0.3% in April.

Year-end rice inventory target set at 3.64 million metric tons
THE Department of Agriculture (DA) said it is aiming for a year-end national rice inventory level of 3.64 million metric tons (MMT), after a reading of just over 2 MMT in early May. “At the end of the year we are looking at 3.64 MMT, equivalent to nearly 95 days’ demand,” Agriculture Assistant Secretary for Operations U-Nichols A. Manalo said in a briefing. The national rice inventory rose 10.3% year on year in early May, while corn stocks were up 6.3%, the Philippine Statistics Authority (PSA) said.

BoI-approved investment pledges drop 23% to P27.4 billion in May
The BOI said it approved P27.41 billion worth of investment pledges in May, down 23% from the P35.7-billion pledges approved a year ago.

External debt hits $128.7B as of end-March
The Philippines’ outstanding external debt stood at a record $128.7 billion as of end-March, the BSP reported. Data showed that external debt rose by 8.3% from $118.8 billion in the same period a year ago. It was also higher by 2.6% from $125.4 billion in the fourth quarter of 2023.

P6.2 trillion budget for 2025 to be House priority – Speaker
After lawmakers have approved all of the priority bills of President Marcos, the next order of business for the House of Representatives will be the proposed P6.2-trillion national budget for 2025, Speaker Martin Romualdez disclosed.

FTA with Europe seen as hedge against deteriorating China ties
Accelerating free trade talks with the European Union (EU) will help the Philippines diversify its trade options away from China as tensions escalate in the South China Sea, economists said.

Weak global trade seen hampering PHL recovery
Disrupted trade is hindering the economy from returning to its pre-pandemic levels with consumer spending, the main driver of the economy, remaining weak, analysts said.

DOE issues new RE application guidelines for greater ease of doing business
Under the newly published guidelines governing the award and administration of RE contracts, developers are now allowed to commence permit processing, conduct survey and other feasibility activities before the official 25-year contract terms begins. The DOE will issue a Certificate of Authority (COA) to developers which grants them authority to proceed with these activities which were previously only permitted after contract approval and signing by the Energy Secretary.

House, Senate close to deal on amending RTL
Speaker Ferdinand Martin G. Romualdez has announced that the House of Representatives and the Senate are nearing an agreement on the amendments to the Rice Tariffication Law (RTL).

PH hydrogen energy plans draw foreign interest
“Numerous” companies from Australia, Europe and North America have expressed interest to develop hydrogen sources in the country for power generation, according to the Department of Energy (DOE). The DOE has offered two areas for hydrogen exploration —one is in Zambales and the other is at the western portion of Central Luzon.

BSP: Peso decline temporary, won’t impact the BOP much
THE depreciation of the Philippine peso may only be temporary and will not have a significant impact on the country’s balance of payments (BOP), according to the Bangko Sentral ng Pilipinas (BSP). In a recent briefing, BSP estimated that the Philippine peso in the first quarter of 2024 depreciated by 2 percent compared to last year, but appreciated 0.2 percent compared to the fourth quarter of 2023.

Rubber industry gets support
The Department of Agriculture (DA) said it will provide extend support to  the Philippine Rubber Research Institute (PRRI) to boost production. These support include a 7.48-hectare property for research and development facilities;  joint utilization of an existing rubber testing laboratory in Zamboanga Peninsula and extension of tenure in its interim office. The Philippines is the 13th largest producer of natural rubber globally but accounted for only a percent of world production in 2022 at 109,000 metric tons (MT).

NFA surpasses target for palay purchase
The National Food Authority (NFA) surpassed its upgraded palay procurement target in the first half of the year due to higher buying prices. As of June 13, NFA’s palay procurement reached nearly 3.37 million 50-kilo bags, slightly exceeding the upgraded target of 3.36 million bags. Total palay inventory has reached 168,262 metric tons, sufficient to cover four days of national consumption in case of emergencies or disasters.

BDO backs infra initiatives to drive economic expansion
BDO Unibank, Inc. (BDO) continues to help drive economic progress through strategic investments in the development of critical infrastructure, particularly in mass transportation and energy sectors. Recognizing the pivotal role of robust infrastructure in enticing foreign investors, BDO cultivates key partnerships aimed at bolstering domestic mobility through expressways, roads, bridges, and enhancing international and domestic connectivity through airport rehabilitation and expansion.

DICT backs House bills mandating lease-free internet installation
The Department of Information and Communications Technology (DICT) has issued an assurance to work closely with Congress for the reclassification of internet links as “public service”, which requires no rental payments for broadband connection.

Central bank might deliver fewer rate cuts this year
The BSP is expected to deliver fewer rate cuts later this year as the US Federal Reserve is likely to delay its own policy easing. BSP Governor Eli M. Remolona, Jr. earlier said the BSP could begin cutting rates as early as August, for a total of 25-50 bps for the entire year.

Cash remittances up 3.1% in April
Cash remittances from overseas Filipino workers (OFWs) rose by 3.1% year on year in April, the BSP said. Data from the central bank showed cash remittances coursed through banks increased to $2.562 billion from $2.485 billion a year ago.

Philippine financial resources further rise at end-April
The Philippine financial system’s total resources sustained its modest growth, rising by almost 10 percent as of end-April, data from the BSP showed. BSP data showed banking resources jumped by 11.6 percent year on year to P26.3 trillion as of end-April from P23.55 trillion a year ago. It accounted for 83.4 percent of the financial industry’s total assets.

Quezon City hall now solar-powered
The Quezon City government is planning to fully solarize city-owned buildings to reduce dependence on non-renewable energy and promote climate action initiatives. Hundreds of solar panels were recently installed at the city hall’s three main buildings, with at least 1,000 panels set for installation in other city-owned buildings, hospitals and schools.

Tourism sector contributes 8.6% to Philippine economy in 2023
The share of Tourism Direct Gross Value Added (TDGVA) in the Philippine economy reached its highest level last year since 2000, the Philippine Statistics Authority (PSA) reported.In a statement on Tuesday, the PSA reported that the 2023 TDGVA increased by 8.6%, reaching P2.09 trillion. This represents a nearly 48% rise from the previous year's TDGVA of P1.41 trillion.

Notes on the beat: A look at the DA’s dream team
Dream Team. It’s the nickname of what has been considered as perhaps the greatest basketball Olympic team ever formed. And that term has been used in various fields and disciplines to describe a team stacked with unprecedented caliber in talent and skill. It’s also a term that the current Department of Agriculture (DA) leadership is describing itself. Francisco Tiu Laurel Jr., the fishing tycoon-turned-agriculture secretary, has formed the biggest leadership roster in the department’s history – 13 undersecretaries and 13 assistant secretaries.

Private hospital workers seek P750 hike in daily minimum pay
Union leaders of medical workers under the Private Healthcare Workers Network (PHWN) filed on Tuesday a petition seeking a P750 increase in their daily minimum wage before the Regional Tripartite Wages and Productivity Board-National Capital Region (RTWPB-NCR) office in Manila.

CHEd: Special approaches needed to address mental health among students
Commission on Higher Education (CHEd) chair Prospero de Vera III emphasized on Tuesday that mental health problems among college students need specialized approaches from trained personnel to be effectively addressed. De Vera made the pronouncement during the signing of a memorandum of understanding between CHEd and Unilab Foundation Inc. for a training program for suicide prevention and awareness in higher education institutions.

More IFPs to be fast-tracked — NEDA
Nearly 50 infrastructure flagship projects (IFPs) in the pipeline will be fast-tracked as the government streamlines the process of securing permits, licenses and other clearances, a NEDA official said. This comes after the government on Tuesday launched the implementing guidelines for EO No. 59, which limits the number of permits or clearances required for IFPs and simplifies the permit approval process of government agencies.

Public, private alliance to boost LNG development
Partnerships between the public and private sectors are needed to ensure energy security, particularly in the development of liquified natural gas (LNG), a Cabinet official said.The Department of Energy (DOE) is crafting a natural gas development plan to offer guidance, a detailed policy framework, legal requirements and incentives for putting up LNG infrastructure projects.

Japan, PH to strengthen defense ties
House of Representatives Speaker Martin Romualdez and Japanese Speaker Fukushiro Nukaga have committed to enhancing the defense and security cooperation between the Philippines and Japan, as well as to expand trilateral cooperation with the United States. Romualdez said a key highlight of this cooperation is the Official Security Assistance (OSA) from Japan amounting to JPY600 million, or roughly PHP235.5 million.

DA: P29/kg rice at Kadiwa sites to benefit 30% target population
The Department of Agriculture (DA) on Tuesday said the 30% target population, including those with weaker purchasing power, will benefit from the sale of PHP29 per kilogram of rice in various Kadiwa sites. "Ang intensyon noon is para sa targeted beneficiary na mostly iyong mga mahihirap, tsaka seniors, atsaka iyong mga solo parents (Its intention is for the targeted beneficiaries who are mostly the poor, elderly, and single parents). That's about 30 percent of the total population," said DA Assistant Secretary Arnel de Mesa in an ambush interview.

Meralco opens bidding for 400 MW of supply 
Distribution giant Manila Electric Co. (Meralco) is soliciting proposals for 400 megawatts (MW) of supply to meet its long-term energy needs, with deliveries starting next year. MANILA, Philippines — Meralco kicked off its competitive selection process to secure mid-merit supply, or the electricity to be injected into the grid to manage the fluctuating demand throughout the day. Distribution utilities and electric cooperatives nationwide are mandated by the Department of Energy to conduct auctions to secure their electricity requirements at the least-cost charge to consumers.

PSA: Tourism hit highest growth at 47.9% in 2023 
The local tourism sector grew by a record-high 47.9 percent to P2.09 trillion from P1.41 trillion in 2022, propelled by the surge in expenditures by tourists visiting the country. The Philippine Statistics Authority (PSA) reported on Tuesday that the tourism sector’s contribution to the economy rose to 8.6 percent of the gross domestic product (GDP) in 2023, an increase from the 6.4 percent share in 2022. Among the forms of tourism expenditures, inbound tourism expenditure [or tourism expenses of a nonresident or foreign visitor] posted the highest annual growth of 87.7 percent, amounting to P697.46 billion in 2023,” the statistics agency said.

San Miguel offers P20B in bonds to retire debt 
San Miguel Corp. has secured the go signal from the Securities and Exchange Commission (SEC) for the conglomerate’s P20-billion bond issuance set for July, representing the second and final tranche of a bond program that kicked off in 2021. San Miguel on Tuesday said the regulator had given it the permit to sell and offer the securities, which will be issued and listed on the Philippine Dealing and Exchange Corp. on July 3.

Peso seen among Asia’s worst performers
The Philippine peso is projected to become one of Asia’s worst-performing currencies as the Bangko Sentral ng Pilipinas (BSP) continues to send out dovish signals to the market, Dutch financial giant ING Bank said. But despite the bearish sentiment on the local currency, ING Bank said in a report sent to journalists that the peso’s support would likely hold at 58 per dollar, although it may weaken to as low as 58.60, which would be a few centavos away from the record-low 59 it hit in 2022.