The budget season officially began on July 29, 2024 at the House of Representatives as Budget Secretary Amenah Pangandaman is set to submit Malacañang’s proposed P6.352 trillion national budget for fiscal year 2025.
NG debt to rise to P17.35-T in 2025
The National Government’s (NG) outstanding debt is projected to hit a record P17.35 trillion at the end of 2025, the Department of Budget and Management (DBM) said. The 2025 Budget of Expenditures and Sources of Financing showed the NG’s debt stock is expected to increase by 8.08% from the projected P16.06-trillion debt at the end of 2024.
BSP ready to welcome more digital banks
The Bangko Sentral ng Pilipinas (BSP) will resume accepting applications for digital banking licenses in the country after three years, a move that would open up the nascent industry to more players as it navigates the path to profitability.
Senate ratifies bicam report on 12% VAT on foreign digital service providers
The Senate on July 29, 2024 adopted the bicameral conference committee report on a bill imposing a 12% value-added tax (VAT) on digital service providers without a physical presence in the Philippines.
Gov’t allots P1.28-T for infrastructure in 2025
THE National Government (NG) is expected to spend P1.28 trillion on infrastructure and capital outlays next year, the Department of Budget and Management said. Under next year’s Budget of Expenditures and Sources of Financing, infrastructure and other capital outlays are expected to jump by 3.04% from P1.24 trillion this year.
S&P expects infrastructure investments to support growth
While the country’s share of overall worth of public infrastructure and properties to the economic output are low, S&P said that it is increasing, even as the economy has experienced rapid growth over the past 10 years. S&P forecasts growth in emerging Asia Pacific except China, to expand by $11.4 trillion by 2033 from $6.6 trillion in 2023 translating to a 5.5 percent annual growth driven by improved infrastructure.
Pushing sustainability goals forward through CSR
With mounting global pressures, there is a growing need to adopt a more sustainable and responsible path to development. The business sector is among those at the forefront of addressing sustainable development, in response to calls to apply socially responsible practices in their operations. Among various means, corporate social responsibility (CSR), is one of the tools businesses use to fulfill its social, environmental, and economic responsibilities.
Revised MRT-4 seeks NEDA approval
The Department of Transportation (DOTr) is seeking approval of the National Economic and Development Authority (NEDA) Board anew for the proposed revision to the Metro Rail Transit line 4 (MRT-4) to address the anticipated high passenger volume in eastern Metro Manila. MRT-4 is a big-ticket railway project to be funded by the ADB.
Foreign buyers eye $1B garments sales amid soft demand
Foreign garment buyers are hoping to book $1 billion in sales this year amid soft demand in the global market. Robert Young, president of the Foreign Buyers Association of the Philippines (FOBAP) said the group is experiencing a 15-percent decline in sales but hopes orders will pick up in the coming months as Christmas shopping season nears.
PH slides to 3rd spot in global banana exports
The Philippines slid to the third spot in global banana exports in 2023, according to a market review released by the Food and Agriculture Organization of the United Nations (FAO). The market review said the Philippines supplies 60 percent of Asian banana shipments on average, despite being impacted by adverse growing conditions related to various factors, including the spread of fusarium wilt tropical race 4 disease, occasional floods and occurrences of political unrest.
PEZA backs ME investment strategy
The Philippine Economic Zone Authority (PEZA) has extended full support to the Foreign Trade Service Corps(FTSC) in harnessing more investments in agribusiness, logistics, and ecozone development from the Middle East. The Philippines and UAE aim to conclude the CEPA negotiations this year in time for the planned state visit in November in celebration of their 50 years of diplomatic relations. The DTI sees the Philippines-UAE FTA as a good takeoff point to access the Gulf Cooperation Countries.
PH banks now more willing to lend to consumers
Banks remained cautious when lending to businesses in the second quarter amid a “deterioration” in the profitability of some companies, all while consumers are poised to see more relaxed lending rules on the back of their stable income. In turn, the BSP said lenders were expecting a “net easing” of loan standards for consumers in the next quarter, and an increase in household loan demand mainly due to robust consumption and “more attractive lending terms” being offered by banks.
SEC chair Aquino: ‘Sustainability’ no longer mere buzzword
Seventeen years ago, a global financial crisis saw the United States and other major economies take their worst downturn since the Great Depression in the 1930s, with millions losing their jobs and public trust in financial institutions eroding. And it is because of these hard lessons, Aquino said, that “sustainability” is now taken more seriously and no longer just a buzzword tossed around in the corporate world.
PHL to resume sugar exports to US
The Philippines will resume exports of raw sugar to the United States amid an increase in domestic production this year, the Sugar Regulatory Administration (SRA) said in an order. In Sugar Order No. 3 dated July 26, the SRA said the Philippines will ship 25,300 metric tons (MT) of raw sugar to the United States to fulfill the sugar quota allocation for 2024.
High rates seen to weigh on growth
Metropolitan Bank & Trust Co. (Metrobank) Research trimmed its gross domestic product (GDP) forecast for the Philippines this year as elevated interest rates continue to crimp domestic demand. Markets are currently pricing in a near-certainty that the Fed will begin cutting interest rates at its September meeting and expect 66 bps in total cuts by the end of the year, according to CME’s FedWatch Tool, Reuters reported.
Gov’t urged to look for new sources of revenue
The Department of Budget and Management (DBM) on Monday (July 29, 2024) will hand over to Congress the proposed P6.352-trillion National Expenditure Program for 2025, which is equivalent to 22% of the gross domestic product (GDP). This is also 10.1% higher than this year’s P5.768-trillion budget. Next year’s budget deficit ceiling is set at P1.537 trillion, equivalent to 5.3% of GDP.
Flood-control focus urged for infrastructure projects
The Government must realign its infrastructure spending priorities to give more weight to flood control projects, analysts said. The Department of Budget and Management (DBM) reported that infrastructure spending in May rose 31.4% year on year to P136.4 billion. The government targets spending on infrastructure equivalent to 5-6% of gross domestic product.
The country’s unemployment rate is expected to inch up next year despite the improving jobs numbers after the pandemic. According to the Department of Budget and Management’s (DBM) Budget of Expenditures between 4.8 percent and 5.1 percent next year.
The amount to be collected by the government’s two largest revenue-generating agencies combined is expected to breach the P4 trillion mark by next year, according to data released by the Department of Budget and Management (DBM). According to the Budget of Expenditures and Sources of Financing (BESF) for fiscal year 2025, the Bureaus of Internal Revenue (BIR) and Customs (BOC) are expected to rake in a combined amount of P4.3 trillion next year. This amount is 13.4 percent higher than the programmed P3.79 trillion for this year.
NG debt hits new high of P15.48-T
The National Government’s (NG) outstanding debt jumped to a fresh high of P15.48 trillion as of end-June, reflecting the impact of the peso depreciation against the US dollar, the Bureau of the Treasury (BTr) said. Data from the BTr on Tuesday showed that outstanding debt inched up by 0.9% to P15.48 trillion as of end-June from P15.35 trillion as of end-May. Year on year, the debt stock increased by 9.4% from P14.15 trillion a year ago.
DoF to wait for rate cuts before borrowing abroad
The Philippines government will wait for rate cuts from the US Federal Reserve and Bangko Sentral ng Pilipinas (BSP) before its planned external borrowings next year, according to the Finance chief. For 2025, the National Government set its borrowing program at P2.55 trillion, 0.97% lower than P2.57 trillion this year. Gross domestic borrowings were set at P2.04 trillion for 2025, while gross external borrowings were set at P507.41 billion.
Philippines a clear laggard in tourism recovery
The Philippines is still lagging behind its Southeast Asian neighbors in its tourism recovery, as Chinese tourists continue to stay away, Bank of America (BofA) Global Research said. Tensions between the Philippines and China have been rising in recent months due to the dispute over contested waters in the South China Sea. The Philippines has also tightened rules for the issuance of tourist visas to Chinese nationals to deter the entry of tourists who end up illegally working in POGOs.
Meralco eyes larger nuclear energy deployment
MANILA Electric Co. (Meralco) is exploring the possibility of deploying both small modular reactors (SMRs) and conventional nuclear reactors to help meet the government’s target of generating 1,200 megawatts (MW) of nuclear energy by 2032, a company official said.
Metro Manila office space take-up jumps 125% in first half — Santos Knight Frank
THE Metro Manila office net take-up in the first half of 2024 has already surpassed the full-year performance of 2023, buoyed by return-to-office mandates and office expansion, according to global real estate services firm Santos Knight Frank. The office sector net absorption of 281,000 square meters (sq.m.) in the first half of 2024 was approximately 125% higher than the full-year take-up of 125,000 sq.m. in 2023.
T-bond yields go down as market awaits BSP cut
The Government made a full award of the reissued 20-year Treasury bonds (T-bonds) it offered on Tuesday at a lower average rate than the previous award, as the market expects the Bangko Sentral ng Pilipinas (BSP) to kick off its easing cycle by next month.
PHL 5G stand-alone network faces performance challenges — Ookla
THE PHILIPPINES’ fifth-generation (5G) stand-alone (SA) network performance worsened in the second quarter (Q2) despite surpassing that of its select Emerging Asia-Pacific (EMAP) peers, according to Ookla. In its report, Ookla said that the Philippines recorded a median 5G SA download speed of 375.40 megabits per second (Mbps) for Q2, leading the EMAP region for that period.
Metro flood control plan only 30% complete: DPWH
Public Works Secretary Manuel Bonoan yesterday said government has a comprehensive master plan on flood management in Metro Manila, but over a decade after it was approved, its completion is less than 30 percent. The P351-billion flood management master plan, which was approved in 2012 under the Aquino administration, is expected to be completed by 2035, he said.
In the DTI proposed budget for 2025, the Office of the Secretary has included special provisions which calls for the implementation of its Shared Service Facilities (SSF) program in the amount of P599.46 million and for the establishment and management of Negosyo Centers at a cost P454.26 million.
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