ECCP at Work

FDI Net Inflows at US$499 Million in May 2024; January-May 2024 Level Up by 15.8 Percent YoY
FDI net inflows amounted to US$499 million in May 2024, lower by 1% than the US$504 million net inflows recorded in May 2023. Notwithstanding the recorded decline in May, FDI net inflows in January-May 2024 grew by 15.8 percent to US$4.0 billion vis-a-vis the US$3.5 billion net inflows reported in January-May 2023.

Bill creating Dep't of Water Resources reaches Senate plenary
The bill creating the Department of Water Resources (DWR) has progressed in the Senate after it was sponsored in the plenary. Senator Grace Poe, principal sponsor of the measure, said the Senate bill is a product of five years of endless studies, consultations, and extensive dialogues.

PHL likely to grow by 6% this year
Philippine gross domestic product (GDP) growth is expected to average 6% this year, at the low end of the government’s 6-7% target, according to analysts.

Peza approves P9.24B worth of investments in first week of Aug
PEZA said it has greenlit P9.24 billion worth of investments for August so far, projects that are expected to generate $264.783 million in exports and create 4,265 new jobs. The Peza said more projects are under assessment and will be discussed in another meeting scheduled on August 27.

NG diversifying financing options for key infra projects
The national government is keen on diversifying its financing options to address the country’s infrastructure constraints. Part of these efforts is the Neda’s proposal to identify 21 projects for the Luzon Economic Corridor, which was announced during the visit of President Ferdinand Marcos Jr. to Washington.

45 DELAYED: P2T ODA-funded projects ‘problematic’
About 45 official development assistance (ODA)-funded projects, valued at roughly P2 trillion, were assessed or flagged as “actual problem projects,” representing an overwhelming majority of the ongoing ODA-funded projects in the 2023 portfolio, due to persistent unresolved issues.

27 new PPP projects added to gov’t pipeline
27 PPP projects have been added to the government’s pipeline as of end-July. These include a P930-million industrial park or agri-industry development project, a P120-million business promotion center project, and the rehabilitation and renovation of the CMU Market with an estimated cost of P38 million.

Fitch Group unit trims PH 2024 growth outlook
The Philippine economy might grow slower than previously expected in 2024, after favorable base effects masked a weakness in the second quarter expansion and painted a “misleading picture” of the economy’s health, BMI Research said.

ERC draft pricing mechanism for green energy auction due this month
The Energy Regulatory Commission (ERC) is hoping to complete the draft pricing mechanism for the Green Energy Auction (GEA) this month, to stay on track for the third GEA round this year.

PHL seen as potential logistics growth market
THE PHILIPPINES is deemed a potential growth market for logistics companies looking to expand in response to growth in international trade, US supply chain services company C.H. Robinson said. C.H. Robinson Vice-President for Southeast Asia Stephen Ly told BusinessWorld that the Philippines remains a vibrant growth market for companies in the industry. “The increased demand for freight and logistics services continues to escalate due to higher levels of international trade and exports, with the Philippine logistics industry expected to reach a market size of P1.16 trillion by 2027,” Mr. Ly said via e-mail.

DA sets checkpoints to control ASF spread
The Department of Agriculture (DA) will set up livestock checkpoints across Luzon following the African swine fever (ASF) outbreaks in Batangas. It noted that the checkpoints are temporary measures while the government awaits the arrival of ASF vaccines, which could take a few more weeks. Agriculture Secretary Francisco Tiu Laurel Jr. assured that the department has the resources to respond to the new ASF cases immediately.

21 projects considered for Luzon economic corridor
More than 20 infrastructure projects are being considered for the Luzon Economic Corridor, the National Economic and Development Authority (NEDA) said. This will connect Subic Bay in Zambales, Clark in Pampanga, Manila and Batangas, accelerating investments in high-impact infrastructure projects, including railways, ports modernization, clean energy, semiconductor supply chains and agribusiness to drive economic growth in each hub.

T-bill, bond rates may go up before BSP meeting
Rates of Treasury bills (T-bills) and Treasury bonds (T-bonds) to be auctioned off this week may climb as investors await the Bangko Sentral ng Pilipinas’ (BSP) policy meeting. The Bureau of the Treasury (BTr) will auction off P20 billion in T-bills on Monday, or P6.5 billion each in 91- and 182-day papers and P7 billion in 364-day debt.

Philippine property developers unfazed by gov’t ban on POGOs
Local property developers are unfazed by the government’s ban on Philippine offshore gaming operators (POGO), saying that it has minimum or no effect on their office and residential businesses.

Poll: BSP to cut rates by 25 bps on Aug. 15
The Bangko Sentral ng Pilipinas (BSP) may cut rates for the first time in nearly four years at its policy-setting meeting this week, according to a majority of analysts polled by BusinessWorld. A BusinessWorld poll conducted last week showed that nine out of 16 analysts surveyed expect the Monetary Board to deliver a 25-basis-point (bp) rate cut at its meeting on Thursday (Aug. 15), bringing the target reverse repurchase (RRP) rate to 6.25% from the current over 17-year high of 6.5%.

SRA clears 240K-mt sugar imports to boost local supply
The Sugar Regulatory Administration (SRA) has authorized the importation of 240,000 metric tons (MT) of refined sugar to beef up domestic supply.

6-month debt service rises 41.3% to ₱1.282T
Payments made by the national government for its debts surged to P1.282 trillion in the first half of the year as amortization and interest payments posted double-digit growth. Data from the Bureau of the Treasury (BTr) showed the government’s debt service from January to June 2024 expanded by 41.29 percent, or P374.860 billion, to P1.282 trillion—from P907.927 billion recorded in the same period in 2023.

Group seeks broader coverage of BPA ban
A local waste and pollution watchdog on Sunday called on the Food and Drugs Administration (FDA) for a broader coverage of the ban on bisphenol A (BPA), a known endocrine-disrupting chemical (EDC) in baby feeding bottles and sippy cups.

Government eyes construction of nuke power plant by 2028
THE government is targeting the construction of nuclear power plant to begin in 2028 and commissioning by 2032, the draft Philippine Nuclear Energy Program (PNEP) for 2024-2050 indicate. The PNEP outlined the key targets that must be achieved for the successful commercial operations of a nuclear power plant in the country.

DENR targets 3 million hectares of forest cover by 2028
The Department of Environment and Natural Resources targets to increase the country’s forest cover by an additional three million hectares by 2028 as part of efforts to minimize the impact of climate change, DENR Secretary Maria Antonia Yulo Loyzaga revealed.

Philippines, Japan, United States explore energy cooperation for biofuels
The United States’ top diplomat in Japan proposed a trilateral cooperation for biofuels among the US, Japan and the Philippines. Ambassador Rahm Emanuel, in a virtual meeting with the Philippine inter agency delegation’s US Ethanol Study Mission to Illinois, discussed a win-win-win solution through trilateral cooperation among the three countries.

Sun Life and Go Negosyo collaborate to foster financial literacy among Filipino MSMEs
Sun Life Philippines, the country’s leading life insurance company, and Go Negosyo, a renowned non-profit organization dedicated to entrepreneurship, recently formalized their strategic tie-up aimed at enhancing financial literacy and safeguarding the future of Micro, Small, and Medium Enterprises (MSMEs).