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  • By Jon Viktor D. Cabuenas, September 25, 2023; GMA Integrated News https://www.gmanetwork.com/news/topstories/nation/883159/psa-delivery-of-physical-national-ids-to-be-completed-in-september-2024/story/ It will take a year to complete the delivery of the physical cards of Filipinos who have so far registered with the Philippine Identification System (PhilSys) as printers are catching up with the volume, a top government official said Monday. According to National Statistician Claire Dennis Mapa, there have been 81 million Filipinos who have registered with the PhilSys, equivalent to 81% of the population aged five and above, 85% of those aged 15 and above, and 65% of those aged five to 14. Out of those who registered, less than half, or 39.7 million have received their physical identification cards, while 41.2 million have only been issued those printed on paper or the ePhilID. Mapa said the backlog is due to the card printing capacity which can only accommodate up to 80,000 per day, while there was a spike in registration dating back to 2021 when up to 250,000 Filipinos enrolled in the system. “‘Yung adjustment is really to increase the capacity of the printer, so parang you have more volume in the registration, but the printer capacity was pegged at about 80,000. So that is the catch-up plan that we are actually talking with the Bangko Sentral ng Pilipinas (BSP),” he said in a Senate hearing. “Based on their schedule as presented to us, they will clear everything by September of 2024,” he added, noting that the printing will continue to operate on a first-in, first-out basis. At present, the PSA aims the cumulative registration of 101 million Filipinos by 2024, with the program seeking a P1.6-billion budget for the year. Former President Rodrigo Duterte signed the national identification system into law in August 2018, seeking to harmonize, integrate, and interconnect the redundant government IDs into a single system. President Ferdinand “Bongbong” Marcos Jr. in July said PhilSys will be at the forefront of his administration’s digital transformation agenda. Marcos Jr. has become impatient over the delays in the release of national IDs, Department of Information and Communications Technology Secretary Ivan John Uy said earlier this month, adding that the DICT is addressing the matter. Uy expressed confidence that a significant number of digital IDs could be released by the end of this year.

  • By Lawrence Agcaoili and Louella Desiderio, September 24, 2023 ; The Philippine Star https://www.philstar.com/business/2023/09/24/2298511/more-think-tanks-lower-growth-forecasts-philippines#:~:text=MANILA%2C%20Philippines%20%E2%80%94%20ING%20Bank%20cuts,Sentral%20ng%20Pilipinas%20(BSP). Manila, Philippines — ING Bank cuts below five percent its 2023 economic growth forecast for the Philippines due to the further pickup in inflation as well as the possibility of additional interest rate hikes to be delivered by the Bangko Sentral ng Pilipinas (BSP). ING Bank lead economist Nicholas Mapa said the Dutch financial giant further lowered its gross domestic product (GDP) growth forecast for the Philippines to 4.8 percent from the original target of five percent for this year. Originally, ING Bank penned a GDP growth forecast of 5.5 percent for this year after the economy grew by 7.6 percent last year with the full reopening of the economy as strict COVID quarantine and lockdown protocols were lifted. The Philippines emerged from the pandemic-induced recession with a GDP growth of 5.7 percent in 2021 after shrinking by 9.6 percent in 2020. Due to external headwinds and the aggressive interest rate hikes delivered by the central bank, the country booked a slower-than-anticipated GDP expansion of 4.3 percent in the second quarter from 6.4 percent in the first quarter. “After second quarter GDP, we lowered to five percent. Now with projected rate hikes and further pickup in inflation, it’s down to 4.8 percent,” Mapa said in a message to The STAR. The economy grew by 5.3 percent in the first half and needs to grow by at least 6.6 percent in the second half to meet the lower end of the six to seven percent growth target set by the Cabinet-level Development Budget Coordination Committee (DBCC). “Factors for the slowdown in growth will be the moderating pace of household consumption as revenge spending fades. 2022 and the early part of 2023 saw a spate of demand for activities related to travel and leisure with Filipinos happy to be able to out and about,” Mapa said. With revenge spending fading and households moving to more normal consumption patterns, the economist said households would move to save more and pay down the substantial debt pile built up during the lockdown and the period of revenge spending. He added that other factors that could cap growth momentum include the sustained moderation of capital formation as investment outlays actually saw a slight contraction in the second quarter with investors reacting to the overhang of slowing global and regional growth on top of slowing economic activity. “Elevated borrowing costs are clearly having an impact on growth momentum with bank lending grinding slower to roughly seven percent from double digit gains earlier in the year,” Mapa said. According to Mapa, the expected increase in government spending could offer some reprieve. “Although given its relatively smaller contribution to overall growth, we are not confident it would be able to fully offset the slower pace of growth for consumption and capital formation,” he said. Mapa said monetary tightening would not be effective in taming the spike in the cost of living as the cumulative 425-basis point-hike delivered by the BSP is still working its way through the economy. “Rate increases of the past year are still working their way through the economy and will likely cap growth momentum well into 2024, with very little impact on bringing down inflation. Unless we see substantial improvement in supply conditions for food and energy, we could see inflation remain above target until November,” Mapa said. After extending its hawkish pause by keeping rates steady last Thursday, BSP Governor Eli Remolona Jr. signaled a possible rate hike in November amid the upside risks to inflation that accelerated to 5.3 percent in August from 4.7 percent in July. “Meanwhile, projected rate hikes by the BSP will not likely be able to address this contemporaneous price spike which in turn could push out the collective impact of rate hikes to all of 2024,” Mapa said. ING Bank sees inflation accelerating to six percent this year from 5.8 percent last year before easing back to within the BSP’s two to four percent target of 3.6 percent next year. After moving at a robust fast pace of six percent growth pre-COVID, Mapa said the return to the six percent growth trajectory may have to wait a bit longer as the Philippines is likely now faced with an extended period of high inflation. Meanwhile, UK-based think tank Pantheon Macroeconomics said the country’s GDP growth likely slowed further to 1.8 percent in the third quarter from 4.3 percent in the second quarter. “As things stand, we expect the Q3 GDP report – due a week before the (Monetary) Board next sits – to show that the economy contracted by a further 0.2 percent quarter-on-quarter, following Q2’s surprise 0.9 percent decline,” Pantheon Macroeconomics chief emerging Asia economist Miguel Chanco and senior Asia economist Moorthy Krshnan said in a report. “If we’re right, this would bring year-over-year growth down to just 1.8 percent from 4.3 percent in Q2, representing the weakest print since the global financial crisis, leaving aside the pandemic-era recession,” the economists said further. They said a poor GDP print, however, would put BSP’s no rate cuts stance to the test in the fourth quarter. Despite Remolona’s statement, the think tank said they continue to expect the BSP to start cutting rates in November. “Really bad news is likely to come sooner rather than later, with our rate forecast predicated on the view that the Philippines is already in the middle of a shallow technical recession,” the economists said.

  • By Xander Dave Ceballos, September 23, 2023; Manila Bulletin https://mb.com.ph/2023/9/23/dof-urges-thrift-banks-to-ramp-up-digitalization-initiatives The Department of Finance (DOF) called on thrift banks to ramp up their digital transformation initiatives. Finance Secretary Benjamin E. Diokno said the administration recognizes the role digital technologies play in unlocking economic potential, productivity, and competitiveness in the 21st century. “Digitalization has upended the world of banking and finance, replacing traditional brick and mortar methods with digital payment systems, cloud computing, and blockchain technology,” Diokno said during the Chamber of Thrift Banks Annual Convention. “These new ways of doing business offer superior speed, efficiency, security, and capacity at lower operational costs,” he added. The finance chief cited a study where Artificial Intelligence or AI would contribute up to $92 billion to the Philippine economy by 2030. On the other hand, Diokno added that blockchain technology has cost-effective financial solutions with security, accessibility, and transparency that could boost financial inclusion. The speed of cloud computing, according to him, will continue to drive fintech’s growth through better data management and faster innovation of financial services at lower costs. “These game-changing developments will be instrumental to securing a resilient financial system in the Philippines,” Diokno added. The finance chief also asked for support from thrift banks to support the passing of Package 4 or the Passive Income and Financial Intermediaries Taxation Act into law. The measure intends to fix the tax system to deepen capital and financial markets. “With this reform, the Philippines sharpens its competitive edge in attracting capital and investments that are urgently needed to finance big-ticket infrastructure projects and create more and better jobs,” the finance chief said. The bill was passed by the lower chamber last year and has been pending with the Senate Committee on Ways and Means since August 31, 2022. Confident despite drop in approval ratings Meanwhile, the economic team comprised of DOF, Department of Budget and Management, and National Economic and Development Authority assured that they are working hard despite a drop in approval ratings based on recent surveys. “While approval and trust ratings may fluctuate given uncontrollable factors such as global or regional shocks, the economic team remains confident in President Ferdinand R. Marcos Jr., who continues to have one of the highest trust and approval ratings in the world,” the economic team said in a statement. It further said that “surveys are primarily based on perceptions, not facts” and cited the country’s 5.3 percent gross domestic product (GDP) growth in the 1st semester of 2023, which was the highest among emerging markets in Singapore, Malaysia, Indonesia, Vietnam, and Thailand. The economic team also added that the country is the third fastest-growing economy among Asian countries with available GDP data, following only India, which was first with 6.9 percent GDP growth for the first half of the year, and China at 5.5 percent. “It is also worth noting that the Philippines’ economic growth performance appreciated in an environment where we continue to have elevated global economic and financial uncertainty,” it further stated. The economic team made the statement following a recent “Pahayag” survey that showed that “economic headwinds” caused President Marcos’ approval rating to decreased from 62 percent in the second quarter to 55 percent in the third quarter. A survey conducted by the PUBliCUS Asia Inc. Inc. also showed that the President’s trust rating fell down to 47 percent from 54 percent.

  • By Business World Staff, September 21, 2023; Business World https://www.bworldonline.com/infographics/2023/09/21/546887/philippines-slips-down-in-global-attractiveness-index/ The Philippines slid a notch to 74th out of 146 countries in the Global Attractiveness Index (GAI) 2023, produced by The European House – Ambrosetti. The index measures the attractiveness of countries using four indicators: dynamicity, sustainability, growth expectations, and conflict exposure. The country got an overall GAI score of 37.4 with an attractiveness category of “medium-low.”

  • By Dempsey Reyes, Nestor Corrales, September 21, 2023; Inquirer https://newsinfo.inquirer.net/1834622/congress-assures-marcos-20-priority-bills-passed-by-year-end?utm_source=(direct)&utm_medium=gallery MANILA, Philippines — Lawmakers on Wednesday assured President Ferdinand Marcos Jr. that Congress was on track to pass the 20 priority legislations of his administration before the year ends, including the P5.7-trillion national budget for 2024, according to Malacañang. Presidential Communications Secretary Cheloy Velicaria Garafil said lawmakers gave the president the assurance during the third Legislative-Executive Development Advisory Council (Ledac) meeting in Malacañang. “Both houses of Congress are on track for the December passage of the 20 priority measures requested by [President Marcos], including the General Appropriations Bill,” Garafil said in a statement. The Palace official said Senate President Juan Miguel Zubiri told Mr. Marcos that the Senate has finished about half of the 20 priority legislations requested by the President for a December passage. “We will pass this (legislative agenda), including the General Appropriations Act, as soon as possible, until the end of the year, which is this December,” Zubiri said after the meeting. Garafil said Speaker Martin Romualdez reported during the meeting that the House of Representatives had already approved 18 out of the 20 legislations on their third and final reading, among them: the institution of a National Citizens Service Training program the Internet Transaction Act/e-commerce law the creation of  the Health Emergency Auxiliary Reinforcement Team the E-Governance Act the Ease of Paying Taxes Act the Waste-to-Energy bill the New Philippine Passport Act the Anti-Financial Scamming Act the amendments to the bank secrecy law Romualdez assured Marcos the House would approve all the 20 measures by the end of September, or three months ahead of the target date. “We are on track to approve the two remaining measures before the October recess,” he said in a statement. Congress will be in recess from Sept. 30 to Nov. 5 this year. Romualdez also committed to Marcos that the House would approve the 2024 budget bill on its third and final reading next week. Plenary schedule The 20 priority measures were approved during Ledac’s second meeting in July this year, 18 of which were part of the 42 priority bills approved during the first council meeting in October 2022. According to Garafil, the 20 bills identified as priority for passage by December include the following: National Employment Action Plan Income Classification of Local Government Units (LGUs) Internet Transaction Act; BOT/PPP (Build, Operate, Transfer/Public Private Partnership) Act Salt Development Industry Act Ease of Paying Taxes, Real Property Evaluation and Assessment Reform Act Magna Carta for Seafarers Anti-Agricultural Smuggling Act The other measures are the following: Waste-to-Energy bill National Disease Prevention Management Authority amendments to the bank secrecy law Medical Reserve Corps Virology Institute of the Philippines E-Governance Act New Philippine Passport Act the National Government Rightsizing Act the National Scamming Act the National Citizens Service Training Program Act the Military and Uniformed Personnel (MUP) Pension System Act Romualdez said the MUP bill was approved on its second reading on Tuesday and committed to the approval of the measure on its third and final reading next week. Another bill, the proposed Philippine Salt Industry Development Act, is undergoing deliberations in the bicameral conference committee, he noted, adding that the substitute bill consolidating all measures seeking amendments to the Anti-Agricultural Smuggling Act is scheduled for approval in plenary next week. The enrolled bill on the National Employment Recovery Strategy has been transmitted to Malacañang for the President’s approval, while the enrolled bill on the Automatic Income Classification Act for LGUs is also ready for transmittal, the Speaker said. Senate backlog Garafil said that the bills listed in the first Ledac meeting that remained pending in various Senate committees are the following: Medical Reserve Corps Virology Institute of the Philippines E-Governance Act National Government Rightsizing Act Free Legal Assistance for Police and Soldiers apprenticeship law Eastern Visayas Development Authority Negros Island Region Passive Income and Financial Intermediary Taxation Act National Land Use Act Magna Carta of Barangay Health Workers Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery bill Leyte Ecological Industrial Zone Enabling Law for the Natural Gas Industry MUP bill amendments to the Electric Power Industry Reform Act of 2001 Budget Reform Act Department of Water Resources National Defense Act

  • By Wilnard Bacelonia, September 21, 2023; Philippine News Agency https://www.pna.gov.ph/articles/1210282 MANILA – Senate Bill No. (SBN) 2444 seeking to lower the optional retirement age of government workers from 60 years old to 56 years old was sponsored on Wednesday to the Senate plenary by the Committee on Civil Service, Government Reorganization and Professional Regulation, together with Committees on Government Corporations and Public Enterprises and Finance. The bill, once passed into law, will amend Section 13-A of Republic Act No. 8291 or the Government Service Insurance System Act of 1997. In his sponsorship speech, Senator Ramon Revilla Jr. said the committees have seen during the public hearings and meetings the desire of government workers to be given the option to retire earlier, as well as lowering the optional retirement age will not be to the detriment of the Government Service Insurance System (GSIS). “Ang edad na limampu’t anim, ay maihahambing nga sa edad ng pagreretiro ng ating mga sundalo at pulis. At tinitiyak po ng inyong Komite, na ang lahat ng ito ay mga konsiderasyon na inaral at tinimbang, upang makalikha ng isang panukalang didinggin ang tinig ng ating mga lingkod-bayan na hindi naman ikapapahamak ng (The age of 56 can be compared to the retirement age of our military and police. Your Committee assures that these considerations that were studied and balanced to create a bill that will hear the voice of our government workers and will not endanger the) GSIS,” Revilla said. He said no less than the GSIS data shows that even now, most of those who avail of the optional retirement wait for an average of two years after they become eligible. “We can thus safely assume that still, a very little percentage will avail of this option when we amend it — leading to no other conclusion but that the actuarial life of GSIS will very minimally be affected, if at all,” Revilla said. Citing a Civil Service Commission (CSC) survey, Revilla said the Philippines has one of the oldest retirement ages pegged at 60 years old and 65 years old compared to other ASEAN countries which goes as low as 40 years old. He also cited a World Bank report saying Filipinos have a life expectancy of 72 years old which is also lower than their ASEAN neighbors like Vietnam, Malaysia, Singapore and Thailand who could still reach 76 to 84 years old. “With this data on hand, indeed, we have to do something so that those who wish to enjoy their retirement earlier and have a longer time to spend with their family and loved ones, will have that option,” he said. The CSC has repeatedly expressed its support for the bill citing that “there is a need for a better retirement plan for the public sector that is responsive to the current economic situation and would honor the government’s civil servants’ selfless service to the nation.”

  • September 20, 2023 5:31 pm

    ADB cuts PH growth forecast for 2023

    By Ronnel W. Domingo, September 20, 2023; Inquirer https://business.inquirer.net/422038/adb-cuts-ph-growth-forecast-for-2023 MANILA – The Asian Development Bank revised downward its gross domestic product growth forecast for the Philippines to 5.7 percent in 2023 from the 6 percent forecast last April, and maintained a 6.2-percent outlook for 2024. In an update of its Asian Development Outlook 2023 Report, ADB said expansion of the Philippine economy in 2023 will moderate — from 7.6 percent in 2022 — even more than previously expected because of high inflation as well as geopolitical tensions and a sharper-than-expected slowdown in major advanced economies. “The Philippines’ growth story remains strong despite an expected moderation in 2023,” said ADB Philippines Country Director Pavit Ramachandran,” said Pavit Ramachandran, ADB’s country director in the Philippines. “Public investment and private spending fueled by low unemployment rate, sustained increase in remittances from Filipinos overseas, and buoyant services including tourism will support growth,” Ramachandran said in a statement. “The government’s large infrastructure projects should further stimulate consumption, boost jobs, and spur more investment.”

  • By Jean Mangaluz, September 20, 2023; Inquirer https://newsinfo.inquirer.net/1834177/fwd-deped-gets-lions-share-of-digitalization-funding MANILA, Philippines — The Department of Education (DepEd) is set to receive P9.43 billion of the proposed budget allotted for digitalization efforts, said the Department of Budget and Management (DBM) on Wednesday. In a statement, the DBM said that P38.75 billion in the National Expenditure Program has been dedicated to the government’s overall digitalization efforts, a 60.6 percent increase from the 2023 budget of P24.93 billion. At around one-fourth of the digitalization budget, DepEd received the highest allotment, with the Department of Justice (DOJ) and Department of Information and Communications Technology (DICT) following, respectively. The DBM listed the following agencies and their cut of digitalization budget: DepEd: P9.43 billion DOJ: P5.55 billion DICT: P5.34 billion (for information and communications technology expenditures) Department of Finance: P3.15 billion Department of Interior and Local Government: P2.60 billion National Economic and Development Authority: P2.08 billion Judiciary (Supreme Court, Presidential Electoral Tribunal, Sandiganbayan, Court of Appeals, Court of Tax Appeals): P1.44 billion Department of National Defense: P1.12 billion Department of Environment and Natural Resources: P913 million Other Executive Offices: P890 million This comes amid a hot debate regarding DepEd’s controversial confidential funds, which amount to P150 million in the proposed 2024 budget.

  • By Zaldy De Layola, September 14, 2023; Philippine News Agency https://www.pna.gov.ph/articles/1209896 MANILA – The local government units (LGUs) with the best anti-hunger initiatives and practices on food security will receive PHP2 million each through the “Walang Gutom Awards”. This after Department of Social Welfare and Development (DSWD) Secretary Rex Gatchalian and the Galing Pook Foundation (GPF) chairperson Mel Sarmiento and Executive Director Georgina Ann Hernandez-Yang signed a memorandum of agreement at the DSWD Central Office in Batasan Hills, Quezon City on Thursday. “Today is a very significant day because it is an acknowledgment that the department cannot do it on its own. We are celebrating that because I always say nobody has a monopoly on the right answers and ending hunger surely cannot be done by one department. We need to create a movement among every single Filipino to once and for all say we are ending hunger right here, right now,” Gatchalian said in a news release on Thursday. “If the department pretended that we can do it on its own, then I don’t think 2027 will be enough as a cut-off date,” he added. Through the Walang Gutom Awards, the DSWD and the GPF aim to recognize and showcase the achievements of LGUs and amplify their success stories in ending involuntary hunger and malnutrition among Filipinos, especially children. “That is why early on we told ourselves that we have to enlist every single Filipino out there to join this battle and to join this crusade. It is a movement. We want to end hunger right here, right now,” Gatchalian said. “We want to end human suffering right here, right now and no child should go to school hungry right here, right now. That is why we enlisted the most reliable brand there is, when it comes to bottom-up policy-making or bottom-up project creation, which is Galing Pook,” he added. To qualify for the awards, the program must be implemented in the LGU, either in the barangay, municipality, city, or province; must be operationalized for at least one year; and must demonstrate verifiable and significant results in addressing food security and nutrition. The DSWD and GPF will award 10 LGUs nationwide with each winning LGU receiving PHP2 million that they can use to extend the program and their beneficiaries. “We know very well that there are success stories in fighting hunger nationwide. It is probably occurring right now but except that it is probably in one of those remote towns out there and the stories are not amplified. That it can be done on a micro level,” Gatchalian said. “So this award today, this launching of the Galing Pook-DSWD Walang Gutom Awards is a testament that we want to amplify the success stories in the local government units out there.” 

  • By Joann Villanueva, September 13, 2023; Philippine News Agency https://www.pna.gov.ph/articles/1209797 MANILA – As the government pushes for the digitalization of its processes, issuance of a “significant portion” of digital national IDs by end-2023 is being targeted, with authorities assuring data protection of ID holders. In a Palace briefing on Wednesday, Department of Information and Communications Technology (DICT) Secretary Ivan John Uy said the agency has been given access to the Philippine Statistics Authority (PSA) database and is now in the process of evaluating whether the information meets the requirement for the issuance of a digital national ID. He cited the quality of some photos as an issue, noting that in some instances low-resolution cameras were used to capture the biometrics of the national ID applicants. Uy is hoping that this issue will be minimal to prevent additional cost to the government in terms of the need to repeat image capturing but clarified that this problem will not delay the whole process. All Filipinos are encouraged to apply for the national ID under the Philippine Identification System Act, or Republic Act 11055. Authorities have repeatedly highlighted the need for a national ID to help eliminate the need for Filipinos to present several government-issued IDs in their transactions. It will also help the government in determining who to enroll in its aid-distribution program. To date, authorities said there are more than 80 million Filipinos who have applied for national ID. “I’m hoping that with the full support of the President and the full support, perhaps, of our legislators to give us all the necessary budget and support that we’ll be able to deploy this, at least, if not 100 percent, a significant portion of it by yearend,” Uy said. The DICT chief is confident of the agency’s ability to hit its target, citing their accomplishment in developing the e-Gov Super App and launched last June, which was developed within a year. The mobile application serves as a one-stop shop for national and government transactions. Uy said scammers cannot gather data of users of the e-Gov app because the information is not stored in the app but in the data bases of the various agencies that have these such as the Social Security System and the Home Development Mutual Fund (HDMF) or the Pag-IBIG Fund. Uy said they are also studying ways on how Filipinos, who do not have smart phones or access to the internet, utilize their digital national ID. “We’re working out ways in order for you to still be able to utilize your digital ID even with those limitations,” he said. He also clarified that while DICT has been tasked to issue digital national ID, PSA will continue to issue physical cards.

  • By Hannah Torregoza, September 7, 2023; Manila Bulletin https://mb.com.ph/2023/9/7/senate-panel-o-ks-nica-nsa-proposed-budget-for-2024 The Senate Committee on Finance has approved the proposed budgets of the National Intelligence Coordinating Agency (NICA) and the National Security Agency for next year. NICA has a proposed budget of P1.432-billion under the National Expenditure Program (NEP) for 2024, which is higher by P47-million than its current appropriation under the General Appropriations Act (GAA) which is P1.385-billion. The National Security Council (NSC) on the other hand, has a proposed P629.278-million for its budget for 2024. NSC’s current budget under the GAA is P418.8-million. Sen. Joseph Victor “JV” Ejercito confirmed that the budgets of the NICA and NSA are all “deemed” approve, but senators are eyeing to augment the two agencies budget using funds from other government agencies who proposed confidential and intelligence (CIF) funds. “We senators are the ones pushing for their budget to be augmented because of the current situation (in the West Philippine Sea),” Ejercito said during the Kapihan sa Senado forum. “Precisely because we will shift to external defense. We really need to augment our intelligence capabilities because of the situation,” he added. While both agencies already have some assets ready in their defense, Ejercito said senators are eager to augment their funds. In a press briefing, Senate President Juan Miguel “Migz” Zubiri said senators see the need to augment the NICA and NSA’s budget “because we well these are interesting times.” “And I think we need to give budgets to the NICA and the NSA in terms of (fighting against) cybersecurity. The Philippines is very vulnerable to cyberhacks and cyber-attacks. We have no cybersecurity backbone, Zubiri stressed. The Senate on Wednesday, Sept. 6, convened the select oversight committee on the confidential and intelligence funds. Senators during the hearing bared plans to transfer excess confidential and intelligence fudns of government to the NICA and the NSA.

  • By Cai U. Ordinario, September 5, 2023; Business Mirror https://businessmirror.com.ph/2023/09/05/moodys-analytics-sees-august-inflation-at-4-8/ Moody’s Analytics expects the country’s inflation rate to average 4.8 percent in August, faster than the actual rate of increase in commodity prices in July. This is the low end of the Bangko Sentral ng Pilipinas (BSP) forecast of 4.8 to 5.6 percent in August. The higher inflation expectation of the BSP was due in part to the steady climb of rice prices. The BSP also noted that inflation may be higher in August due to weather disturbances, the sharp rise in fuel prices as well as increased transport costs. The central bank noted that higher train fares and toll rates, and the peso depreciation are the primary sources of upward price pressures in August. In July, the Philippine Statistics Authority (PSA) reported that inflation slowed to 4.7 percent, the lowest in 16 months. However, even during the briefing, the PSA already said rice prices have been climbing and could be the cause for high inflation. PSA data showed rice inflation averaged 4.2 percent in July 2023, the highest since February 2019 when the increase in the commodity’s prices was at 4.5 percent. The Rice Trade Liberalization (RTL) Act was implemented in March 2019. This may have prompted the President to issue Executive Order No. 39 which mandated a price ceiling of P41 per kilo for regular-milled rice and P45 per kilo of well-milled rice. In a statement issued after the President set a price ceiling on the country’s staple, Socioeconomic Planning Secretary Arsenio M. Balisacan backed the issuance of EO 39 saying that a temporary ceiling price on rice will give Filipinos a much-needed reprieve in terms of high inflation as well as discourage hoarding.

  • By Gaea Katreena Cabico, September 3, 2023; Philippine Star​ https://www.philstar.com/headlines/2023/09/03/2293567/neda-cap-rice-prices-only-temporary-address-high-costs-hoarding Manila, Philippines — The imposition of a price cap on rice is only a “temporary measure” aimed at reducing the retail prices of the grain and discouraging hoarding, the National Economic and Development Authority said Sunday. President Ferdinand “Bongbong” Marcos Jr. set the maximum retail price of regular milled rice at P41 per kilogram and P45 for well-milled rice in a move that could have detrimental effects on farmers and consumers. The new ceiling will take effect on Tuesday. NEDA said the imposition of a price ceiling on the basic staple “will immediately reduce the price of rice, and it penalizes and consequently discourages hoarding, further decreasing the price of rice.” “We are confident that the imposition of a price ceiling is only a temporary measure. We expect the rice harvest to commence soon and anticipate that other initiatives will produce the desired result,” NEDA said, adding that law enforcement authorities continue to crack down on individuals who hoard, smuggle, or participate in rice cartels. According to NEDA, the rice inflation rate increased to 4.2% in July from only 1.0% in January. “We note that the price of rice has been sharply increasing over the past weeks, which is inconsistent with the apparent supply and demand situation. This implies that some are manipulating the expected impact of the El Niño Southern Oscillation to depict a shortage at this time,” the agency said. NEDA added that the country has enough rice for the end of the year due to the start of the harvest season in September and additional import orders. Farmers’ group AMIHAN earlier said the price ceiling should not be used to create false expectations, similar to Marcos’ campaign promise of lowering rice prices to P20 per kilogram.

  • By Chino S. Leyco, September 1, 2023; Manila Bulletin https://mb.com.ph/2023/9/1/ph-seeks-streamlined-rules-for-ppp-projects The Department of Finance (DOF) has stated that simplifying regulations and procedures for infrastructure projects will lead to quicker approvals for Public-Private Partnership (PPP) initiatives. Finance Secretary Benjamin E. Diokno said that prompt evaluation of projects is crucial in creating a favorable environment for PPP-related investments. The Marcos administration is utilizing PPP as a financing solution for its infrastructure development plan, allowing the mobilization of private capital without straining public funds. “This requires a stable and predictable PPP policy environment that paves the way for better quality infrastructure and services while allowing private players to get a reasonable rate of return on their investment,” Diokno said. To speed up the process, the finance chief said the government has implemented initial reforms to its PPP rules, such as the revision of the Implementing Rules and Regulations (IRR) of the Build-Operate-Transfer (BOT) Law. The National Economic and Development Authority has also updated its Joint Venture Guidelines to align with the new BOT IRR. Additionally, the government has revised the Investment Coordination Committee’s guidelines for approving PPP proposals, aiming to reduce bureaucracy and streamline the approval process. However, these reforms are deemed insufficient, as Diokno emphasized the necessity of passing the pending PPP Act in the Senate. According to Diokno, the upper chamber of Congress is expected to approve it “very soon.” President Ferdinand R. Marcos Jr. has certified the Senate bill proposing the PPP Act as urgent. The bill establishes guidelines for PPP projects that can be funded through government appropriations or official development assistance from foreign governments or institutions. In 2022, the House version of the PPP Act passed its final reading. However, Diokno pointed out that recent PPP reforms have already resulted in quicker project approvals within the past seven months. For instance, the proposal to rehabilitate the Ninoy Aquino International Airport was evaluated and approved in around six weeks, while the TPLEX Extension Project, covering Tarlac, Pangasinan, and La Union, underwent evaluation and approval within 11 weeks. “Since the beginning of the President’s term, we have already approved four PPP proposals with a total project cost of P212.8 billion or around $3.8 billion,” Diokno said. “The speed of evaluating PPP projects of this scale is a testament to this administration’s dedication to working hand in hand with the private sector to spur economic growth,” he concluded.

  • By Ruth Abbey Gita-Carlos, August 31, 2023; Philippine News Agency https://www.pna.gov.ph/articles/1208890 MANILA – The Marcos administration is seeking an allocation of PHP12.92 billion for the implementation of the Department of Labor and Employment’s (DOLE) emergency employment program, Tulong Panghanapbuhay sa Ating Disadvantaged/ Displaced Workers (TUPAD), in 2024. In a statement on Thursday, the Department of Budget and Management (DBM) said the allotment of PHP12.92 billion for the TUPAD program under the 2024 National Expenditure Program (NEP) is vital to bolster job creation for Filipinos. The DBM said TUPAD, a community-based package of assistance providing emergency employment, is expected to benefit over 1.36 million displaced, underemployed, and seasonal workers. The program provides occupation to Filipinos for a minimum period of 10 days to a maximum of 90 days, depending on the nature of the work to be performed. “All disadvantaged workers aged 18 and older are qualified as program beneficiaries. Senior citizens are also eligible for the program, provided that they are fit to work and would not engage in hazardous work,” the DBM said. “Meanwhile, only one member per family shall be eligible for the assistance. In no instance shall the beneficiaries be availed of more than once in a calendar year, except in cases of natural or human-induced disaster or calamity,” it added. DBM Secretary Amenah Pangandaman said the proposed budget for the TUPAD program will be taken from the PHP16.4 billion allotted for DOLE’s Livelihood and Emergency Employment Program. Pangandaman said the government aims to strengthen social protection measures to ensure that no one will be left behind, especially the marginalized and vulnerable sectors. Internship, livelihood programs Meantime, the DBM said the DOLE’s Government Internship Program (GIP) would receive PHP807.72 million under the 2024 NEP. Around 13,554 youth beneficiaries will benefit from the implementation of GIP in 2024, the DBM noted. The GIP provides internship opportunity for high school, technical-vocational, or college graduates who wants to pursue a career in public service in either local or national government. The DBM said around PHP2.3 billion would be allotted to the DOLE’s Integrated Livelihood Program (DILP) which would benefit some 63,959 marginalized workers in 2024. DILP is a flagship program of the DOLE which aims to help marginalized groups such as self-employed workers who are unable to earn sufficient income, unpaid family workers, low-waged and seasonal workers, workers displaced or to be displaced, marginalized and landless farmers, marginalized fisher-folks, women and youth, persons with disability, senior citizens, indigenous peoples, victims of armed conflicts, rebel returnees, and parents of child laborers. Under DILP, around PHP250,000 will be granted to associations with 15 to 25 members; PHP500,000 for associations with 26 to 50 members; and PHP1 million to associations with 51 members and above. The DBM said DOLE’s Adjustment Measures Program (AMP) would get PHP407 million next year. The DOLE-AMP is a nationwide safety net program that provides a package of assistance and other forms of interventions as a means of helping workers and companies, particularly the distressed, in coping with economic and social disruptions.

  • By Butch Fernandez, August 29, 2023; Business Mirror https://businessmirror.com.ph/2023/08/29/4-new-laws-to-brief-relief-progress-migs/ Senate President Juan Miguel Zubiri on Monday said the signing into law of four measures “will positively impact the lives of Filipinos socially, economically and culturally.” In a statement, he said, speaking in Filipino, “We believe these measures will bring relief and progress to many of our people.” President Marcos Jr. recently signed into law these measures: Republic Act No. 11958 titled “An Act Rationalizing the Disability Pension of Veterans” Republic Act No. 11960 titled “OTOP Philippines Act” Republic Act No. 11961 or the “An Act Strengthening the Conservation and Protection of Philippine Cultural Heritage …” Republic Act 11959 titled “Regional Specialty Centers Act.” These laws, Zubiri said, “have been exhaustively deliberated in the halls of the 19th Congress to meet the increasing demands of the changing times and enhance public service to Filipino citizens.” The Senate chief thanked the president for signing the measures into law, and praised the work of senators “in deliberating on these measures and making sure the intended benefits indeed favor their target beneficiaries.” The “People’s Senate is committed to passing more legislation that will benefit the Filipino people,” the aenate president added. The four laws are impactful measures, he explained, because they increase disability pensions of veterans, strengthen the One Town, One Product Program, push for further conservation of the country’s cultural heritage and, finally, pave the way for regional specialty hospitals. RA 11958 will upgrade the benefits of veterans with disabilities whose rates remained unresponsive to the needs of today – or over 30 years ago. If the veteran reaches the age of 70 and has not been granted benefits from the law, he will be deemed disabled and will get a monthly pension of P1,700. RA 11960 or the OTOP Philippines Act, meanwhile, aims to empower and support local industries, especially in rural areas, by encouraging entrepreneurship and promoting local products as a means of economic growth. It mandates the Department of Trade and Industry (DTI) to craft a six-year, national OTOP strategic development plan within a year. It also mandates government to provide product promotion and market access for OTOP beneficiaries. RA 11961, on the other hand, seeks to strengthen the protection and conservation of the country’s cultural heritage through cultural mapping, amending Republic Act No. 10066 or the “National Cultural Heritage Act of 2009.” The new law defines cultural mapping as the identification, recording and use of cultural resources of communities. Among the salient points of the measure is the creation of a Philippine Registry of Heritage, where all cultural properties and natural properties of cultural significance of the country shall be registered. The fourth new law, RA 11959, seeks to establish specialty centers in government hospitals in every region all over the country. It seeks to decongest national specialty centers located in Metro Manila and bring these specialty centers closer to the people. It also provides the criteria for the creation of specialty centers in a region, which includes, but not limited to: evidence of health needs of demands; service capabilities of the hospital and geographic proximity; and availability of health human resources. The Regional Specialty Centers Act is principally authored and co-sponsored by Zubiri himself with Sen. Bong Go as the principal sponsor. It is a fulfilled campaign promise he made during the last national elections.

  • By Luisa Maria Jacinta C. Jocson, August 28, 2023; Business World https://www.bworldonline.com/top-stories/2023/08/28/541798/gross-borrowings-hit-p1-4t-in-1st-half/ The National Government’s (NG) gross borrowings rose nearly a third to P1.42 trillion in the first semester, the Bureau of the Treasury (BTr) reported. Data from the BTr showed that the NG’s gross borrowings in the first six months jumped by 32.9% from P1.07 trillion in the same period a year ago. Domestic debt accounted for almost three-fourths or 74.25% of total gross borrowings during the six-month period. Gross domestic debt surged by 42.5% to P1.06 trillion in the first half from P741.263 billion in the previous year. Broken down, the BTr raised P686.15 billion from fixed-rate Treasury bonds, P283.763 billion from retail Treasury bonds, and P86.584 billion from Treasury bills. Meanwhile, external borrowings in the January-June period went up by 11.3% year on year to P366.441 billion from P329.336 billion. This consisted of P163.607 billion in global bonds, P145.059 billion in program loans, and P57.775 billion in new project loans. In June alone, the NG’s gross borrowings went up by 13.9% to P166.487 billion from P146.17 billion in the same month in 2022. Month on month, total borrowings increased by 13.4% from P146.783 billion in May. Gross domestic borrowings rose by 49.2% to P143.92 billion in June from P96.448 billion a year ago. The BTr raised P125 billion from the issuance of fixed-rate Treasury bonds and P18.92 billion from Treasury bills. Meanwhile, gross external debt fell by 54.6% to P22.567 billion during the month from P49.722 billion. This was composed of P19.903 billion in new project loans and P2.664 billion in program loans. Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the increase in gross borrowings in the first half was likely due to elevated inflation and high interest rates. “Higher prices and interest rate expenses, as well as weaker peso exchange rate, all contributed to the need to borrow more,” Mr. Ricafort said in a Viber message. Headline inflation eased to 5.4% in June from 6.1% both in May 2023 and June 2022. This brought the average six-month inflation print to 7.2%, still higher than the central bank’s revised 5.6% full-year forecast and 2-4% target band. The Bangko Sentral ng Pilipinas (BSP) has kept its benchmark interest rate at a near 16-year high of 6.25% for three straight meetings. From May 2022 to March 2023, the BSP has raised borrowing costs by 425 basis points (bps). “The further reopening of the economy towards greater normalcy may have also increased some government spending especially on infrastructure, thereby leading to the more gross borrowings to financing the deficit, (which) in turn, led to new record-high outstanding National Government debt levels in recent months,” he added. The NG’s outstanding debt stood at P14.15 trillion as of end-June, up by 10.6% year on year. Debt as a share of gross domestic product (GDP) stood at 61% at the end of the second quarter. This was unchanged from the first quarter but still remained above the 60% threshold considered by multilateral lenders to be manageable for developing economies. The Department of Finance expects the debt-to-GDP ratio to end the year at 61.4% and to below 60% by 2025. “However, there is a need to increase the utilization of government funds/budget by some government agencies in view of the interest rates and other debt servicing costs involved, from an investments perspective and the need to deliver tangible benefits to justify the financing costs incurred, rather than idle or not fully utilized,” Mr. Ricafort added. This year, the government plans to borrow P2.207 trillion. Broken down, this consists of P1.654 trillion from domestic sources and P553.5 billion from external sources. 

  • By Patrick Miguel, August 25, 2023; Business Mirror https://businessmirror.com.ph/2023/08/25/comelec-hikes-poll-workers-honoria/ Poll workers for the upcoming Barangay and Sangguniang Kabataan Elections (BSKE) will receive the honoraria amounting to P9,000 and P10,000, the Commission on Elections (Comelec) said. According to Comelec chairman George Garcia, the poll body will increase the honoraria of the electoral board (EB) from P6,000 to P10,000, while members increased from P5,000 to P9,000. “Tinaasan po namin base po sa aming naipon o aming natipid sa procurement namin (We increased it based on what we earned or what we saved from our procurement),” said Garcia. The poll body will also provide death benefits worth P500,000 to families of poll workers who died of election-related risks. Meanwhile, P200,000 will be given to poll workers who sustained illness and/or injuries. Last March, education workers’ group Alliance of Concerned Teachers (ACT) demanded poll workers such as teachers deserve an increase in honoraria. “Our poll workers only deserve honoraria and allowances that justly compensate the strenuous and hazardous election duties,” ACT said in a statement.

  • By CNN Philippines Staff, August 25, 2023; CNN Philippines https://www.cnnphilippines.com/business/2023/8/25/emarketplace-government-supply-purchases.html Metro Manila — The Marcos administration is set to have its own online marketplace similar to e-commerce giants Shopee and Lazada for the government’s acquisition of trillion-pesos worth of supplies and equipment, according to the Department of Budget and Management (DBM). In a statement on Thursday, the DBM said President Ferdinand Marcos Jr. was “very keen” on pursuing the idea. Budget chief Amenah Pangandaman said the platform, “eMarketplace,” is part of the proposed amendments to Republic Act (RA) 9184 or the Government Procurement Reform Act (GPRA). The eMarketplace seeks “to do away with the long, tedious procurement process that has caused delays in the government’s delivery of products and services,” the DBM said. While the GPRA served as “one of the biggest anti-corruption laws” in the Philippines, Pangandaman said the accelerated digital transformation and transactions, particularly witnessed during the COVID-19 pandemic, prompted the government to upgrade how to deal with processes. “That’s why our president is correct that we need to make government procurement more attuned to our changing times,” she noted. “Procurement affects us every day, not just us the government, but the Filipino people. Procurement issues have an adverse impact on public service delivery. We have also been hounded by controversies linked to the Philippine procurement system. Of our total national government budget, up to 25% is done via procurement. So, this year, it’s roughly ₱1.3 trillion. It’s a huge amount,” Pangandaman added. Procurement Service (PS)-DBM Executive Director Dennis Santiago explained that the current administration would replicate Shopee and Lazada’s business model, where a qualified government supplier would be allowed to place their items on the eMarketplace. Santiago said the government would ensure that the products available on the platform would be in good shape and beneficial for government offices. The DBM said suppliers would still be required to comply with identified legal, technical, and financial requirements to be able to include their offered goods in the system.

  • Samuel P. Medenilla, August 23, 2023: Business Mirror https://businessmirror.com.ph/2023/08/23/neda-and-dict-sets-new-target-for-issuance-of-digital-national-ids/ All digital versions of the Philippine Identification System Cards (PhilSys ID) are expected to be released before the end of the year, according to the National Economic and Development Authority (Neda). This after Neda, through the Philippine Statistics Authority (PSA), tapped the Department of Information and Communications Technology (DICT) for the production of the digital PhilSys ID, also known as the National ID, which will be in the form of a “unique number.” “We should first make those digital IDs so that anyone who has a phone can already use the digital ID and that is now the primary responsibility of the DICT,” Neda Secretary Arsenio M. Balisacan said in a news briefing in Malacañang last Wednesday. Under the said agreement, the production of the digital ID will now be handled by DICT, while PSA will still do the printing and distribution of the physical version of the National ID. Last May, the Department of Justice (DOJ) recommended to President Ferdinand R. Marcos Jr. to issue an executive order allowing DICT to produce the digital PhilSys IDs. “We are more than halfway in the physical ID but I said we want to speed up the digital ID so that hopefully before the end of the year it will be completed [and], everyone will have a digital ID,” Balisacan said. PSA said it is targeting to print 50 million physical PhilSys ID before the end of the year. As of August 2, it said over 80 million people have registered to avail of the PhilSys ID. Balisacan noted no less than President Marcos is closely monitoring the progress in the implementation of the PhilSys due to its expected benefits. “It’s very important for us that that’s completed because it will reduce transaction cost in government as well in the private sector, it will allow us to save a lot of resources from our ‘ayuda’ [income transfer] because many of the income transfers targeted for the poor do not end up with the poor because there are leakages,” the Neda chief said. “But with the digital ID the ayuda or transfer income support like the DSWD [Department of Social Welfare and Development] food stamp program for example will now be delivered through the digital card with the use of the digital IDs,” he added.

  • August 22, 2023 12:40 pm

    Zero tariff mulled for 3-wheeled EVs

    By Catherine Talavera, August 22, 2023; The Philippine Star https://www.philstar.com/business/2023/08/22/2290348/zero-tariff-mulled-3-wheeled-evs Manila, Philippines — The government is considering the inclusion of two-wheeled and three-wheeled electric vehicles in the executive order that enforces zero tariffs on EVs. An official from the Department of Energy (DOE) said that a recommendation for this action has been submitted to the Tariff Commission (TC). In an interview with reporters, DOE energy utilization management bureau director Patrick Aquino said they have formalized their recommendation to the TC to suspend tariffs on two-wheel and three-wheel EVs for the same period under EO 12, which spans five years. “We have formalized (the recommendation) so we’re just waiting for the public consultation process of the Tariff Commission,” Aquino said. “We’re confident that the tariff commission will follow the same trajectory and listen to the recommendation because it’s not just the DOE that is pushing for it. The DTI (Department of Trade and Industry) and the NEDA (National Economic and Development Authority) have also thrown their support,” he said. Aquino is optimistic that the process for the public consultation will start soon. “So we can expect the possible expansion to happen around the same time of the issuance of the current executive order (EO). But the time frame will still be tied to the existing one,” he said. Aquino, however, noted that the issuance of an EO to implement the recommendation, if approved, is time-bound. “When we say time-bound, the President can only exercise that power when Congress is not in session,” Aquino said, noting that the earliest window for this is during the Congress recess for the barangay elections and during the Christmas break. In May, the DTI said that the inclusion of two-wheeled vehicles such as motorcycles under the executive order imposing zero tariffs on EV would have to be reviewed a year after the EO’s implementation. Trade Secretary Alfredo Pascual explained that the zero tariff for EVs under EO 12 applies to four-wheeled vehicles, which is good for five years. Under Section 2 of EO 12, the most favored nation tariff rates under the issuance are subject to review after one year from the implementation of the order. “For this purpose, the NEDA shall submit to the President, through the Office of the Executive Secretary, its findings and recommendations on the matter,” the EO read. In an earlier statement, the Electric Vehicle Association of the Philippines (EVaP) said that it has been pushing for all EVs to be zero tariff, including two-wheel vehicles, except for e-jeeps and e-trikes, which have local manufacturing and assembly in the country. EVaP president Edmund Araga said this move would not only benefit consumers by making EVs more affordable, but it would also help the country achieve its goals of reducing greenhouse gas emissions and improving air quality.

  • By Ruth Abbey Gita-Carlos, August 18, 2023; Philippine News Agency https://www.pna.gov.ph/articles/1208078 MANILA – President Ferdinand R. Marcos Jr. and the Private Sector Advisory Council’s (PSAC) Job Sector Group have discussed several initiatives aimed at generating more than 2 million direct jobs by 2028. In a fourth meeting convened by Marcos at the State Dining Room of Malacañan Palace in Manila on Thursday, the PSAC – Job Sector Group presented its proposed actions and recommendations that could help create more employment opportunities for Filipinos. Marcos, during the meeting, was briefed about the proposed roadmap of PSAC and the IT and Business Process Association Philippines (IBPAP) to transform the Philippines into “a global leader in the digital domain.” Under the proposed roadmap, the targeted approach is envisioned to open 1 million additional Information Technology and Business Process Management (IT-BPM) jobs by 2028 and a total of 2.5 million employment opportunities, the PSAC said in a news release. “These positions will, in turn, stimulate the generation of at least 550,000 new IT-BPM jobs in the countryside and 6.3 million indirect job opportunities across various industries, such as food, logistics, real estate, retail, and transportation. The ripple effect of this initiative is expected to significantly contribute to the nation’s economic development,” PSAC said. Citing IBPAP figures, PSAC lead convenor and Aboitiz Group president and chief executive officer Sabin Aboitiz said the proposed roadmap is projected to contribute PHP169 billion in annual personal income tax and inject 8.9-percent growth into the Philippines’ gross domestic product. “This transformative undertaking exemplifies a commitment to harnessing the potential of the Filipino workforce and leveraging technology for the nation’s progress,” Aboitiz said. ‘Significant global player’ Marcos and the PSAC – Job Sector Group also discussed the priority sectors that would play a vital role in making the Philippines a “significant global player,” while also retaining, upscaling and creating more jobs. The council proposed the allocation of direct scholarship funds towards IT-BPM training and upskilling, with support from the Office of the Presidential Assistant on Investment and Economic Affairs and the Private Sector Jobs & Skills Corp. PSAC said the goal is to train about 500,000 individuals annually with a budget of PHP4 billion. It also recommended the synergy among the Department of Education, the Commission on Higher Education, and the Technical Education and Skills Development Authority to enhance enterprise-based training programs. The PSAC’s proposal includes extending Senior High School immersion from 80 hours to 640 hours, promoting higher education internships, and fostering apprenticeships. “While the implementation of these recommendations requires collaborative effort between the government and private sectors, PSAC – Jobs and IBPAP earnestly call for joint support and collective action to drive innovation, enhance competitiveness, and enable the Philippine workforce through AI upskilling and forward-looking interventions,” PSAC said. Key sectors’ development During the meeting at Malacañan, PSAC – Job Sector Group emphasized the need to focus on industries that could boost job creation and shape the Philippines as a “future-ready” nation where cutting-edge technology, workforce empowerment, and economic growth converge. PSAC noted that synergies between the private sector and the Department of Agriculture would play a crucial role in bringing development to the agriculture sector. “The ongoing study to help develop the habal-habal and motorcycle taxi program could generate one million jobs. The recommendation also incorporates private sector participation in which it aims to connect an estimated 200,000 agri MSMEs (micro, small and medium enterprises) and can generate over 400,000 additional jobs,” it said. The council also proposed the improvement of the Philippines’ Shipping Registry through the passage of a law that could enable a robust administrative framework to facilitate maritime trade. It also backed the reinstatement of the Philippine Economic Zone Authority’s one-stop shop role to provide streamlined services to foreign companies in economic zones. “PBBM and government officials are poised to deliberate on these recommendations and explore their implementation to drive the Philippines forward as a global economic powerhouse,” PSAC said. (PNA)

  • By Ma. Cristina Arayata, August 17, 2023; Philippine News Agency https://www.pna.gov.ph/articles/1208070 MANILA – An official of the Technical Education and Skills Development Authority (TESDA) on Thursday said the agency has shifted its focus on higher TVET (technical and vocational education and training) as well as adopting the best practices of other countries. “We are aggressively focusing on the needs of the industry — the digital revolutions. So, we are offering higher courses. We have already introduced cyber security, robotics, and smart healthcare,” TESDA Deputy Director General Aniceto “John” Bertiz III said in a public briefing. “TESDA is now focusing on high technical training, and adopting the best practices of other countries. Mutual recognition of assessment and certification of other countries are also being adopted,” he added, As example, Bertiz cited Singapore which introduces technical education to the youth, to help them decide whether to pursue this path. ” Their (students’) iPad and gadget are not only for gaming, but they could actually use these as learning tools to develop their skills,” he said. Reports said the Department of Budget and Management has allocated PHP3.4 billion for free TVET in 2024. Bertiz said this is a huge help due to the growing number of graduates. There were 1.2 million TESDA trainees who graduated in 2022, and TESDA is targeting 1.8 million enrollees for its various skills training courses and programs this year. “We really need additional funds to cater to the growing number of enrollees. This could also help us develop more high-skills training geared towards the fourth industrial revolution, future skills and technologies,” he said, adding that TESDA is also upgrading its provincial training services. The agency has been prioritizing marginalized sectors in terms of providing TVET in coordination with local government units of various provinces. TESDA has also been partnering with industries to help the agency in crafting the courses as well as for the apprenticeship of its students. “It’s very important to strengthen the TVET system. Most of the industries now are coordinating with TESDA and they share their latest training regulations. These are modules being adopted by TESDA based on industry demand,” Bertiz said. (PNA)

  • By Leonel Abasola, August 17, 2023; Philippine News Agency https://www.pna.gov.ph/articles/1208049 MANILA – Senate Majority Leader Joel Villanueva on Thursday cited the need for the government to step up efforts to reskill and upskill Filipinos to give them wider employment opportunities. Villanueva’s statement was in reaction to the report of the National Economic and Development Authority (NEDA) during the briefing of the Development Budget Coordinating Committee (DBCC) for the proposed 2024 budget, which said there is a big mismatch between what the educational institutions are producing and the employment opportunities from fast-evolving sectors associated with digital technology and green economy. The NEDA report emphasized the need to ensure the employability of workers especially in creating opportunities for high quality jobs. Villanueva welcomed the PHP9.18 billion allocation for programs on “increasing employability” lodged in the new appropriations. This includes the Government Internship Program, Special Program for Students, Jobstart Philippines, Supporting Innovation in the Philippine Technical and Vocational Education and Training System, Special Training for Employment Program, Training for Work Scholarship Program and Tulong Trabaho Scholarship Program. “This is exactly why we need a reskilling and upskilling revolution to have a competitive and resilient workforce for the 4th Industrial Revolution so that our people will have a better shot at sustainable and quality employment,” Villanueva said in a statement. Upskilling involves adding or scaling up one’s skills, while reskilling has to do with retraining one in a new area. Villanueva said the proposed interventions for upskilling and reskilling will go through thorough scrutiny during the deliberation of the budget of departments. “We want to know the specific training or courses in the programs, the number of beneficiaries and the extent to which these programs will help achieve the target (of) 4.4 percent to 4.7 percent employment rate in 2024,” he said. He said the volatility of the unemployment rate is affected by notorious seasonal jobs, adding that the country’s unemployment rate is “usually low during peak seasons like Christmas season, then unemployment increases after. This is evident in the agriculture and tourism sectors.” He also noted that there is a significant decrease in the unemployment rate from 5.3 percent in August 2022 to 4.3 percent in December 2022. Based on the 2022 International Monetary Fund data, the unemployment rate in Thailand is at 1 percent, 2.1 percent in Singapore, 2.4 percent in Vietnam and 3.6 percent in Malaysia. “Compared to our ASEAN counterparts, we are lagging behind when it comes to employability and creating quality jobs which is why we need to implement a National Employment Masterplan to identify the needs of the labor sector,” Villanueva said. Senate Bill No. 2035 or the Trabaho Para Sa Bayan Act creates a comprehensive employment masterplan, which will synergize the government’s efforts in addressing the country’s employment challenges – including the generation of quality jobs and opportunities for all, as well as the issue of job-skills mismatch. The bill was passed on 3rd reading in the Senate last May 2023.

  • By Louella Desiderio, August 16, 2023; The Philippine Star https://www.philstar.com/business/2023/08/16/2288891/growth-target-still-achievable-says-neda#:~:text=During%20the%20Development%20Budget%20Coordination,year%20is%20still%20within%20reach. Manila, Philippines — The government’s economic growth target for the year remains achievable, with the continued downtrend in inflation and state agencies’ catch-up spending expected to pull up gross domestic product (GDP) growth in the second half, the National Economic and Development Authority (NEDA) said. During the Development Budget Coordination Committee’s budget briefing at the Senate yesterday, NEDA Secretary Arsenio Balisacan said he believes the GDP growth target of six to seven percent for this year is still within reach. “We need to grow by 6.6 percent in the second half to achieve the lower projection target of six percent for the entire year. We believe that is very achievable,” he said. The Philippine economy grew at a slower pace of 4.3 percent in the second quarter compared to the 6.4 percent expansion in the first quarter this year, and 7.5 percent in the second quarter last year. This brought the average growth in the first half to 5.3 percent. Balisacan said the continued deceleration in inflation, or the rate of increase in prices of goods and services, would buoy consumer demand, investments, and the rest of the economy in the second semester. “If inflation can be lowered further to three percent in the second semester, we can pull up growth by an additional 0.1 percentage point for the period,” he said. Headline inflation eased for the sixth straight month to 4.7 percent in July, amid slower food and utility price increases. The average inflation of 6.8 percent in the January to July period, however, remains above the government’s two to four percent target range. To see a sustained deceleration in inflation, Balisacan said the government would need to intensify supply-side interventions and demand-side management. He said the government’s catch-up spending would also have an impact on GDP growth in the second half of the year. “We estimate that the catch-up spending for public construction activities may add up to 0.3 percentage point in our economic growth in the second semester,” he said. “Meanwhile, implementing the catch-up plan on maintenance and other operating expenses and personnel services will increase our growth by 0.5 percentage point in the second semester,” Balisacan said. Despite risks to growth, including high prices due to inadequate food supplies and typhoons and natural disasters, the El Niño weather phenomenon expected to last until the first quarter of 2024, the spread of highly infectious animal diseases, slower global economic growth and geopolitical and trade tensions, he is optimistic the growth target for this year, as well as the 6.5 to eight percent growth goal in 2024 to 2028, could be attained.

  • By Jasper Y. Arcalas, August 15, 2023; Business Mirror https://businessmirror.com.ph/2023/08/15/pagcor-to-privatize-its-45-casinos-by-3rd-quarter-of-2025/ State-run Philippine Amusement and Gaming Corp. (Pagcor) said it wants to privatize all of its 45 casinos as early as the third quarter of 2025 as the agency decouples its dual role as a gaming regulator and operator. “My thrust is to privatize the 45 properties of Pagcor. I am looking at 2025 as my timeline. In fact, I have been doing some studies on the said privatizations,” Pagcor Chairman Alejandro H. Tengco told the House Committee of Appropriations during the agency’s budget hearing on Monday. Tengco said, at present, Pagcor is trying to increase the value of its properties to be able to hike the future privatization proceeds. Tengco also emphasized that the privatization plan of Pagcor “cannot be stopped” since it has the imprimatur of President Marcos Jr. “It is clear that Pagcor should purely be a regulator and not an operator at the same time,” he said, while noting that the third quarter of 2025 would be the earliest target for the privatization. The Department of Finance (DOF) has been of the view that Pagcor’s dual roles are conflicting and that the government-owned and -controlled corporation should only be left with its regulatory function. The chair of the Senate Public Services committee, Sen. Grace Poe, had earlier also weighed in in favor of privatization,  saying Pagcor could perform better if it did not have to carry out two conflicting mandates as regulator and operator. Cagayan de Oro City 2nd District Rep. Rufus B. Rodriguez, however, questioned the privatization plan of Pagcor and even went on to say that he would file a bill to oppose such proposed measure. Rodriguez argued that Pagcor would lose its “regularity of income” if its casinos were privatized. “Why are we going to sell the goose that lays the golden egg?” he said during the budget hearing. However, Tengco defended Pagcor’s plan, arguing that maintaining the agency’s dual roles would mean continued “unethical” practice. “Unfortunately, there is an impropriety,” he said. “We are the only [gaming agency] around the world that is a regulator and is also an operator,” he added. The Pagcor chief, who has since assuming office undertaken thorough reforms in the agency‚including replacing the third-party auditor his predecessors hired for regulating online gambling entities—admitted that Pagcor has been remiss in regulating its very own gambling operations. This, he noted, is “unfair” to private licensed casinos. “I have to be very candid and honest that sometimes we overlook regulating ourselves. We are being unfair to those we have given licenses to,” Tengco said.

  • By Ruth Abbey Gita-Carlos, August 11, 2023; Philippine News Agency https://www.pna.gov.ph/articles/1207629 MANILA — Employers Confederation of the Philippines (ECOP) president Sergio Ortiz-Luis Jr. on Friday emphasized the need to ramp up government spending to propel economic growth. During the Laging Handa briefing, Ortiz-Luis said the government should boost spending to meet its target growth rate of 6 percent to 7 percent for 2023. Ortiz-Luis said the country needs to catch up, given that the Philippine economy grew by 4.3 percent from April to June 2023 or below the target of 6 percent to 7 percent and slower than the 6.4 percent in the first quarter. “Between that ‘yung target dito sa period na ‘to. Hindi natin na-meet ‘yun. Konting-konti lang umangat ‘yung so kailangan maghabol tayo (Between that is the target for this period. We did not meet that. It did not increase that much, so we have to catch up,” he said. “Ako ang nakikita ko isang pinakamalaking kakulangan ‘yung spending ng gobyerno. Iyong mga budget nung mga departamento na hindi nagagaasta, understandable naman kasi ‘yung mga tao, bagong administration, bagong mga tao, nag-aaral pa sila, hindi pa nila alam kung paano gamitin ‘yung mga pera. Pero siguro kailangan bilisan nila ‘yung paggamit ng mga budget (I see the government’s spending as the biggest shortcoming. It is understandable that the respective funds of the departments that are not spent because the people under the new administration are still studying, they do not yet know how to use the money. But perhaps, they need to accelerate the spending of budget),” he added. President Ferdinand R. Marcos Jr.’s economic managers on Thursday said the government would accelerate spending in the coming quarters to allow the country to recover its growth momentum. The economic team is composed of Socioeconomic Planning Secretary and National Economic and Development Authority Director General Arsenio Balisacan, Budget Secretary Amenah Pangandaman and Finance Secretary Benjamin Diokno. In a circular letter issued Aug. 9, Pangandaman directed government agencies to submit catch-up plans following the below-programmed spending in the first half of 2023. The directive was issued after data from the Bureau of the Treasury showed that government spending in the first six months of this year reached PHP2.411 trillion, which is 6.6 percent or PHP170.5 billion below the PHP2.582 trillion programmed for the period. Main drivers of employment Meantime, Ortiz-Luis said Marcos’ foreign trips and the economic reopening serve as the main drivers of the increasing employment rate in the country — 95.5 percent in June. Construction, agriculture, administrative and food services, and public administration and defense on the government side are among the industries that generated more jobs, he said. “Unang-una talaga tuloy-tuloy ‘yung pag-alis natin doon sa pandemic era at tuloy-tuloy ang pag-hire. Ang gobyerno naman tuloy-tuloy ang pag-encourage ng investment, at maraming byahe ni Presidente. Hindi naman inaasahan na marami talagang i-uuwing investors at ‘yun ay tuluy-tuloy (First of all, we continue to stay out of the pandemic and open more jobs. The government continues to encourage investments, and the President travels a lot. It is not expected that there will be many investors and that becomes a trend now),” he said, noting the marked increase in Board of Investments and Philippine Economic Zone Authority registrations. “Sa katunayan, sa Philippine Chamber of Commerce (and Industry) halos every week mayroon kaming mga delegation na ini-entertain na nagtatanong, naghahanap ng ka-partner at kung ang mapapasukan nilang negosyo dahil sa mga byahe ni Presidente (In fact, at the Philippine Chamber of Commerce [and Industry], we entertain almost every week the delegations making inquiries, looking for partners and asking what business they could enter following the President’s overseas trips),” he added. To open more opportunities for Filipinos, Ortiz-Luis said ECOP has been carrying out an advocacy campaign and forged an agreement with the Department of Labor and Employment, the Department of Trade and Industry, manufacturers, business process outsourcing, and the tourism industry to create 1 million jobs.

  • By Gabriel Pabicu Lalu, August 10, 2023; Inquirer.Net https://newsinfo.inquirer.net/1814881/fwd-economic-cluster-assures-house-ph-getting-closer-to-medium-term-growth-goals MANILA, Philippines — The Philippines has been getting closer to the growth goals set by President Ferdinand Marcos Jr.’s administration, the economic cluster assured the House of Representatives as deliberations for the proposed 2024 national budget started. During their presentation on Thursday, different agencies within the Development Budget Coordination Committee (DBCC) like the Bangko Sentral ng Pilipinas (BSP), the Department of Finance (DOF), the National Economic and Development Authority (Neda), and the Department of Budget and Management (DBM) showed where the country is currently standing in various parameters. Finance Secretary Benjamin Diokno said that in terms of the Medium-Term Fiscal Framework (MTFF) goal to reduce the debt-to-gross domestic product (GDP) ratio to less than 60 percent by 2025, the country is currently at 61 percent to 63.5 percent. “To ensure sound fiscal management, the DOF, together with the economic team, has set the medium-term fiscal framework targets. In particular, we aim the following: bring down debt-to-GDP ratio to less than 60 percent by 2025 wherein as of Q1 (1st quarter) 2023 debt-to-GDP ratio is at 61 percent down from 63.5 percent from Q1 2022,” Diokno said. “Reduce deficit-to-GDP ratio to 3 percent by 2028 wherein as of Q1 2023 deficit-to-GDP is at 4.8 percent.  And number three, maintain investment in infrastructure at 5 to 6 percent of GDP annually wherein in 2022 infrastructure spending is at 5 percent,”  he added. Diokno also said that the tax collections of the Bureau of Internal Revenue (BIR) — an attached agency of the DOF — and the non-tax revenues increased by 18 percent from 2021 to 2022. “In terms of revenue, tax revenue is projected to increase from P3.5 trillion in 2023 to P6.5 trillion in 2028, or from 14.4 percent of GDP to 16.9 percent of GDP. On the other hand, non-tax revenue is estimated to grow from P191.1 billion in 2023 to P183.7 billion in 2028,” he said. “I am happy to announce that we are on track to meet the MTFP (Medium-Term Fiscal Plan) targets.  In fact, in 2022, the national government revenue collections increased by 18 percent year-on-year and exceeded the DBCC targets,” he added. Meanwhile, Neda chief Secretary Arsenio Balisacan showed that the latest data on Gross National Income (GNI) per capita, or the gross income of each individual annually, has risen to US$3,950.  While this is still far from the 2028 goal of US$6,044 to US$6571, it is an increase from 2021’s US$3,550. Similarly, the unemployment rate in the country has decreased, averaging 5.4 percent in 2022, to 4.6 percent in January and April 2023, and 4.5 percent in June 2023. The end-of-plan target is to lower the rate to between 4.0 percent and 5.0 percent. “We expect to achieve the upper-middle income country status by 2025.  Last year our per capita GNI increased to US$3,950, from US$3,550 in 2021.  Meanwhile, the target unemployment rate is within four to five percent […] The latest data showed that the unemployment rate further improved to 4.5 percent,” Balisacan said. Balisacan admitted that the country needs to catch up regarding the percentage of wage and salaried workers in private establishments, total employed workers, and food inflation. Food inflation for January to July 2023 is estimated to be 8.6 percent and 6.3 percent for July alone.  This is far from the MTFF goal of 2.0 percent to 4.0 percent. DBM and the rest of the DBCC said that the MTFF and the eight-point socioeconomic agenda of the Marcos administration were the guiding light in crafting the proposed budget. The MTFF, the 2022-2028 fiscal framework set by President Marcos’ administration, was adopted by the House as early as August 2022.  The eight-point socioeconomic agenda meanwhile includes the following: Protect purchasing power of families Reduce vulnerability and mitigate scarring from the COVID-19 pandemic Ensure sound macroeconomic fundamentals and government processes Create more jobs Create quality jobs Create green jobs Ensure a level playing field Uphold public order and safety, peace and security The deliberations for the proposed 2024 national budget amounting to P5.768 trillion started on Thursday, with the opening hearing of the Committee on Appropriations headed by Speaker Ferdinand Martin Romualdez himself. Romualdez has assured the public that the House will closely examine each agency’s proposed funding in 2024, ensuring that each centavo will be “judiciously spent.” He also promised that the House would submit the budget before Congress goes on a break before October so that the Senate would have enough time to deliberate the general appropriations bill.

  • By CNN Philippines Staff, August 9, 2023; CNN Philippines https://www.cnnphilippines.com/news/2023/8/9/asean-china-to-hold-south-china-sea-code.html Metro Manila (CNN Philippines, August 9) — The Association of Southeast Asian Nations (ASEAN) and China will be resuming the negotiations for a Code of Conduct (COC) on the South China Sea in Manila on August 22-24. Last month, Foreign Affairs Secretary Enrique Manalo said that he looks forward to having an effective and substantive COC. During the ASEAN Foreign Ministers’ Meeting in Jakarta, Indonesia, the “Guidelines to Accelerate Negotiations for the Code of Conduct in the South China Sea” was adopted, aiming to speed up the negotiations. The ASEAN-China COC negotiations will be taking place at a time when Manila and Beijing clashed over the recent incident in Ayungin Shoal. Maritime law expert Jay Batongbacal said in a forum organized by the Foreign Correspondents Association of the Philippines (FOCAP) on Wednesday that while there is no other alternative for ASEAN but to engage with China in COC talks, the Philippines has the option to also consider walking away from it. “For ASEAN as a whole that’s the only game in town on this issue, but I am putting that suggestion out there. It’s a way of calling their attention to take this process seriously,” said Batongbacal. “In any negotiating situation when you arrive at a deadlock, walking away is always a valid option. It gives time for people to think, reconsider,” he added. The maritime expert said that the COC negotiations have been dragging on and the ASEAN appeared to be locked into the idea that countries should just keep talking. Security analyst Ray Powell, meanwhile, cautioned the Philippines and ASEAN over a possible “weaker code.” “If China succeeds in getting a weaker COC, then China will say UNCLOS (United Nations Convention on the Law of the Sea) and arbitral tribunal will no longer apply to the South China Sea and outside powers have nothing to say about this,” Powell said in the same forum. Philippine-China relations expert Rommel Banlaoi, on the other hand, said that while there’s nothing preventing the Philippines from walking away from COC negotiations, Manila should be ready for repercussions. “If the Philippines will unilaterally opt out of COC negotiations, it will be isolated [from] the rest of ASEAN. There is nothing preventing the Philippines [from having] bilateral negotiations for a bilateral code of conduct with China,” he said. “Let us not lose patience,” the expert added. Banlaoi said that parties in the dispute can take cooperative activities not only with China but also with other parties.

  • By Ronnel W. Domingo, August 7, 2023; Philippine Daily Inquirer https://business.inquirer.net/414401/govt-committee-mobilized-for-a-credit-rating The government’s economic team wants national agencies in lockstep along the road to an “A” credit rating before the Marcos administration ends and, to ensure this, has mobilized an interagency body to coordinate efforts. Finance Secretary Benjamin Diokno said in a press briefing that an Inter-Agency Committee on the Road to A Credit Rating Agenda or “IAC on the Road to A” was created as early as 2019 during the previous administration. Diokno said the Bangko Sentral ng Pilipinas (BSP), of which he was governor, and the Department of Finance organized the IAC with the intention to effectively coordinate the efforts of member agencies to develop, execute and monitor the implementation of the Road to A Roadmap. The IAC is co-chaired by the BSP deputy governor and the treasurer of the Philippines, with the following government agencies as members—BSP, Bases Conversion and Development Authority, Bureau of the Treasury, Clark Development Corp., Department of Budget and Management, Department of Finance, Department of Public Works and Highways, Department of Transportation, Department of Trade and Industry/Board of Investments, National Economic and Development Authority and Philippine Statistics Authority. “The IAC aims to enhance engagements with analysts and investors; coordinate engagements with credit rating agencies and third-party raters; and increase the Philippines’ visibility through traditional and technology-based platforms,” Diokno said. From any of three In particular, the government wants to achieve an investor-grade sovereign credit rating of “A” from at least one of the three major international rating agencies—Moody’s Investor Service, Fitch Ratings andS&P Global Ratings—as well as Japan-based raters Japan Credit Rating Agency and Rating and Investment Information. “The IAC has a three-pronged strategy that focuses on achieving solid economic growth; prudent fiscal management; and strong governance standards and institutions,” Diokno said. He said that an A rating would affirm the Philippines’ creditworthiness and would serve as a strong signal to local and international business and financial communities that the country is conducive to long-term investments. “In turn, this will increase investment and will eventually help us achieve our long-term economic plans,” Diokno said. Fitch’s rates the Philippines at BBB, between minimum investment grade of “BB” and minimum A-level of “A” rating. Moody’s rates the Philippines at “Baa2,” which is one notch above the minimum investment grade of Baa3 in its rating scale. Baa2 is also two notches away from the A-level bottom rung of “A.” S&P Global rates the Philippines at BBB, which is two notches above the minimum investment grade and a notch away from A-level ratings band. “It is important to note that we managed to maintain investor-grade ratings even during the pandemic, while other countries were downgraded,” Diokno said. “Furthermore, the Philippines’ credit ratings remain strong compared to select rating peers.”

  • By Julito G. Rada, August 4, 2023; Manila Standard https://www.manilastandard.net/business/314356874/july-inflation-eased-to-16-month-low-of-4-7.html Inflation in July 2023 eased to a 16-month low of 4.7 percent from 5.4 percent in June, pulled down by slower year-on-year increase in housing, water, electricity, gas and other fuels, the Philippine Statistics Authority said Friday. “This is the sixth consecutive month of deceleration in the headline inflation and the lowest since March 2022 with an inflation of 4 percent,” national statistician and civil registrar general Dennis Mapa said in an online briefing. The July inflation was also slower than 6.4 percent in June.  This brought the average in the first seven months to 6.8 percent, still higher than the 2023 target range of 2 percent to 4 percent. “While we continue to experience a downtrend in inflation, we need to be vigilant, especially as we face increasingly volatile weather disturbances as well as external headwinds such as oil price increases and trade restrictions on food,” said National Economic and Development Authority Secretary Arsenio Balisacan. He assured the public that the government is proactively monitoring the supply and demand situation of key commodities to achieve its inflation target of 2 to 4 percent by end of the year. Food inflation decelerated to 6.3 percent in July from 6.7 percent in June, as inflation rates of the following food items slowed: fish and other seafood (4.5 percent from 6.2 percent), eggs and dairy products (9.7 percent from 11.2 percent), bread and other cereals (10.1 percent from 11.0 percent) and sugar (21.4 percent from 28.9 percent). Non-food inflation also eased to 3.3 percent in July from 4.1 percent in June. Inflation of electricity, gas, and other fuels slowed from 5.2 percent to 2.5 percent, while inflation for passenger transport services declined from 11.2 percent to 7.2 percent. Non-food items, including food services, housing rentals and passenger transport, remain the top contributors to inflation, contributing a total of 1.8 percentage points. Agricultural commodities such as vegetables, rice, fish, and dairy products contributed a total of 1.5 percentage points. Balisacan said the government took steps to deploy its resources to affected areas as well as prepare its policy and on-the-ground response as it expects more typhoons and weather disturbances from the El Niño to ensure that the current weather disturbances would not have a lingering impact on inflation and the economy for the rest of the year, “The government will implement necessary measures to prevent price spikes, protect the purchasing power of Filipino families, and sustain our economic recovery and momentum,” he said. The Inter- Agency Committee on Inflation and Market Outlook and the Economic Development Group held a joint meeting on July 20, 2023 to discuss proposed policy adjustments that seek to ensure a more stable supply of agricultural products to meet the demand of different users and end- consumers adequately. The committee reiterated the productivity-enhancing and efficiency-improving strategies laid out in the Philippine Development Plan 2023-2028 concerning agriculture and agribusiness. These measures aim to secure the country’s food supply, prevent sudden increases in agricultural commodity prices, improve the well-being of farmers and fisherfolk, and ensure the vital contribution of agriculture to other sectors of the economy.

  • By CNN Philippines Staff, August 3, 2023; CNN Philippines https://www.cnnphilippines.com/news/2023/8/3/unga-ph-led-reso-pca.html Metro Manila (CNN Philippines, August 3) — The United Nations General Assembly (UNGA) has adopted a resolution spearheaded by the Philippines, which recognizes the Permanent Court of Arbitration’s crucial role in the peaceful settlement of international disputes. “PH spearheaded this campaign, together with core group members Australia, Egypt, Guatemala, Hungary, and Thailand,” said PCA Administrative Council’s acting president and Philippine Ambassador to the Netherlands Eduardo Malaya. Dated July 21, the resolution invited UNGA members to commemorate the international tribunal on its 125th anniversary. Based in the Netherlands, the PCA was established at the Hague Peace Conference in 1899. The measure encouraged member states to support and make use of the PCA’s services “consistent with international law, in arbitration, conciliation, mediation, commissions of inquiry and other peaceful means of dispute resolution.” Assembly resolutions serve as decisions or recommendations for member states pertaining to the “general principles of cooperation for maintaining international peace and security,” and the “peaceful settlement of any situation that might impair friendly relations among countries.” Malaya said the policy-making organ adopted the resolution by consensus, without a vote, and that 122 Assembly members co-sponsored it. Most resolutions are approved this way, according to the UN. Department of Foreign Affairs (DFA) Sec. Enrique Manalo welcomed the move and said “the consensus adoption of the resolution shows that countries do see the merit of upholding the rule of international law and credible dispute settlement mechanisms like the PCA – to deal with their differences through diplomacy, peacefully, and not by force or intimidation.” The Philippines and the PCA In January 2013, Manila filed before the PCA a case against Beijing under the United Nations Convention on the Law of the Sea over its sweeping claims in the South China Sea, including 80% of the Philippines’ exclusive economic zone. In July 2016, an arbitral tribunal ruled in favor of the Philippines. However, China rejected the landmark decision, describing it as “illegal and invalid,” and has continued its incursions and harassment of Filipino vessels in the West Philippine Sea. As a result, the Senate on Monday adopted a resolution condemning China’s rejection of the arbitral ruling, its aggressive actions over the contested waters, and urged the DFA to raise the issue to the UNGA.

  • By Gabriel Pabico Lalu, August 2, 2023; Inquirer.Net https://newsinfo.inquirer.net/1810932/house-receives-proposed-p5-768-t-natl-budget-for-2024-from-dbm MANILA, Philippines — The House of Representatives on Wednesday received from the Department of Budget and Management (DBM) the proposed P5.768 trillion national budget for 2024, and the early word from the agency revealed it is almost 10 percent bigger than 2023’s. DBM Secretary Amenah Pangandaman formally submitted the 2024 National Expenditures Program (NEP) to Speaker Ferdinand Martin Romualdez in a ceremony held nine days after President Ferdinand Marcos Jr. delivered his second State of the Nation Address. Initial information from the DBM showed that the proposed budget is 9.5 percent higher than the P5.267 trillion General Appropriations Act (GAA) or the enacted budget for 2023. As mandated by the 1987 Constitution, the education sector gets the highest allocation in the proposed 2024 national budget with P924.7 billion, which is higher than the P895.2 billion approved in the 2023 GAA. Public works or infrastructure programs get P822.2 billion in the proposed 2024 national budget, which is lower than 2023’s P894.2 billion.  Allocation to health also decreased from P314.7 billion in the 2023 GAA to P306.1 billion in the 2024 NEP. But proposed appropriation for defense increased in the 2024 NEP to P232.2 billion from P203.4 billion in the 2023 GAA. Budget shares for transportation (P106.0 billion to P214.3 billion) and social welfare (P199.5 billion to P209.9 billion) likewise increased under next year’s proposed NEP.  

  • By Keisha B. Ta-asan, July 31, 2023; Business World https://www.bworldonline.com/banking-finance/2023/07/31/536698/bsps-coin-deposit-machines-collect-p12-million-following-june-launch/ The Bangko Sentral ng Pilipinas (BSP) has collected coins worth P12 million through its coin deposit machines (CoDMs) a month after their rollout in select retail establishments in Manila. BSP Deputy Governor Bernadette Romulo-Puyat told reporters on the sidelines of the central bank’s annual reception for the banking community on Friday that members of the public have been using the coin deposit machines. “We’ve only deployed 10 machines in one month, but we were able to collect P12 million worth of deposits and about six million pieces of coins,” she said in mixed English and Filipino, adding that the highest value the BSP got from just one depositor was P50,000. She said six CoDMs were only deployed in the last two weeks, while the first four machines launched by the BSP were popular among the public, resulting in long lines. The BSP began deploying CoDM units in June in partnership with Filinvest Lifemalls Corp., Robinsons Supermarket Corp., and SM Retail, Inc. The most popular units so far are those located in the SM Mall of Asia in Pasay City, in Robinsons Place Ermita in Manila, and in Festival Mall in Muntinlupa City, Ms. Romulo-Puyat said. The central bank is looking to deploy more machines in those locations to cater to the high demand, she added. The value of coins deposited in CoDMs may be credited to the depositor’s e-wallet account or converted into a shopping voucher for over-the-counter transactions. All denominations of the BSP Coin Series and New Generation Currency Coins Series are accepted by the CoDM. Unfit and demonetized coins, foreign currency, and foreign objects are rejected by the machine and returned to the depositor. The central bank is looking to improve the circulation of coins in the country through the coin deposit machines, Mr. Romulo-Puyat said. As of now, customers depositing coins can only credit the equivalent amount to their GCash e-wallets. The BSP is looking to include other electronic money issuers, such as Maya, in the project’s next implementation phases. “We’re still waiting for Maya. We’ve been inviting them to join the project. Hopefully by August, Maya will be available as well so people could have more options,” Ms. Romulo-Puyat said. She added that 98% of deposits were credited to clients’ e-wallets while the rest were converted to shopping vouchers. Pasig City Mayor Victor Ma. Regis “Vico” N. Sotto has reached out to the BSP as he also wants to have CoDMs in Pasig City, Ms. Romulo-Puyat noted. A total of 25 machines will be deployed across the greater Manila area until August. The rollout of the machines in select retail establishments of the SM Store, Robinsons Supermarket, and Festival Mall is part of the first phase of the project’s implementation. The BSP will determine if the project will be expanded to other regions and if the number of machines will be increased a year after the launch.

  • By Keisha B. Ta-asan and Luisa Maria Jacinta C. Jocson, July 31, 2023; Business World https://www.bworldonline.com/top-stories/2023/07/31/536670/inflation-in-right-direction-but-phl-faces-persistent-upside-risks/#:~:text=THE%20BANGKO%20SENTRAL%20ng%20Pilipinas,and%20Russia’s%20invasion%20of%20Ukraine. The Bangko Sentral ng Pilipinas (BSP) needs to ensure that the downtrend in inflation is “more permanent,” amid persistent upside risks arising from the El Niño weather event and Russia’s invasion of Ukraine. “Inflation is in the right direction but we have to be able to set in the measures which will make it long term and sustainable. Right now, we’re lucky that fuel prices are going down. But that’s luck. We need to make it more permanent,” Monetary Board member Bruce J. Tolentino told reporters on the sidelines of the annual reception for the banking community on Friday. At the same event, BSP Governor Eli M. Remolona said it is too early to “declare victory” against inflation, even if it is on its way to the 2-4% target band. “Core inflation remains high. There are still upside risks to inflation — for example, risks in the form of El Niño and further supply shocks. We will wait and see. We will analyze the data as they arrive, and that analysis will decide monetary policy down the road,” Mr. Remolona said. The BSP expects inflation to return to the 2-4% target range by the fourth quarter this year, with full-year inflation hitting 5.4% in 2023. Inflation is expected to decelerate further to 2.9% in 2024. According to Mr. Tolentino, the blockage of wheat and fertilizer exports due to the ongoing conflict in Ukraine will impact prices of rice and corn globally. “We’re reacting to international developments particularly to fuel, but if Ukraine gives a kick to food and fuel prices, we have a problem,” he said. Earlier this month, Russia quit the Black Sea Grain Initiative which allowed Ukraine to export grain to help prevent a global food crisis. “There’re still long-term underlying productivity issues that we have to resolve, and those long-term underlying productivity issues are all about agriculture,” Mr. Tolentino said, adding the government should consider amending the tariff structure to support price stability. National Economic and Development Authority Secretary Arsenio M. Balisacan said inflation likely further moderated in July, but cited risks from rising oil prices. “We are seeing oil prices going up a bit. We’ll see how Russia moves in the Ukrainian exports of grain, but I will say that it will not be as bad in terms of the global reaction of the markets as before, because I suppose that you know, the world learned from those further shocks,” he told reporters on Friday. Mr. Balisacan also noted the impact of Typhoon Egay, which has caused P1.5 billion in agriculture damage so far. “That’s really a very serious concern because we never expected this kind of flooding. The assessment is still going on,” he said. “They’re monitoring the situation, especially the impact on agriculture because it’s flooding in the Ilocos Region. Benguet has also been hit hard and that’s where a lot of vegetables come from. We don’t have much of the data now. Hopefully, it’s not that serious,” he added. Policy Meanwhile, Finance Secretary Benjamin E. Diokno, a member of the Monetary Board, said that the BSP does not have to match the recent rate hike made by the US Federal Reserve. “I don’t think we have to match, that’s my view. We have to monitor other indicators like inflation and what’s the impact of this recent adjustment on the global economy and the domestic economy,” he said in a press chat on Friday. The US central bank hiked the federal funds rate target range by 25 basis points (bps) to 5.25-5.5% last week, the highest level in 22 years. The BSP also raised its key policy rate by 425 bps to 6.25% from May 2022 to March 2023. It will meet again on Aug. 17 to discuss the country’s policy settings. The interest rate differential between the Fed and the BSP now stands at 75 bps. “When we meet on Aug. 17, we will look at all this. (We also consider) the impact of the slowdown. We have to think, we might have a recession here. We will look at all the numbers. We are data dependent,” Mr. Diokno said. Mr. Diokno said that there have been times where the interest rate differential between the Fed and the BSP is narrow.

  • By CNN Philippines Staff, July 25, 2023; CNN https://www.cnnphilippines.com/news/2023/7/25/marcos-second-sona-takeaways.html Metro Manila (CNN Philippines, July 24) — President Ferdinand Marcos Jr. delivered his second State of the Nation Address (SONA) on Monday, firmly enumerating his administration’s gains in the past year as he sought to assure a nation that remains beset by economic woes. In his speech that ran slightly shorter than his first SONA, Marcos confidently declared: “I know that the state of the nation is sound and is improving.” He claimed partial victory from the economic impact of the COVID-19 crisis while acknowledging that challenges remain in a number of areas. Among others, the president talked about inflation, issued a stern warning against individuals driving up prices of basic commodities, and exhorted Congress to approve a fresh list of priority measures. CNN Philippines gives a summary of the issues tackled by the chief executive in his address. Improving economy Shortly after taking the podium at the Batasang Pambansa at 4:06 p.m., Marcos dove straight into highlighting the country’s post-pandemic economic progress. “Nakakita po tayo ng magagandang resulta [We are seeing good results],” he said in his speech that lasted for 1 hour and 11 minutes. A recent survey by a Manila-based firm found that the majority of Filipinos identify inflation as the most pressing issue hurting Marcos’ overall performance. This was something the president acknowledged in his address, saying that despite headwinds, the Philippines is still among the fastest-growing economies in the world and that inflation is “moving in the right direction.” He noted that “while global prospects were bleak,” the Philippines posted a 7.6% economic growth in 2022, its highest in 46 years. “In spite of the difficulties, we are transforming the economy. We are stabilizing the prices of all the critical commodities,” the president added. War on smugglers, hoarders Expectations were high for Marcos – the country’s concurrent Agriculture chief — to lay out concrete plans to help the agriculture sector. In this area, Marcos vowed to address high prices of commodities and help both farmers and consumers by going after agricultural smugglers, hoarders, and price fixers. “Hinahabol at ihahabla natin sila [We’re running after them],” the president said. “Bilang na ang mga araw ng mga smugglers at hoarders na ‘yan [The days of those smugglers and hoarders are now numbered].” Without going into detail, Marcos said his government will continue implementing agrarian reforms. He noted his recent approval of the New Agrarian Emancipation Act, which writes off the loans of agrarian reform beneficiaries. It was the only measure he mentioned in last year’s SONA that became a law. Meanwhile, Marcos gave assurance that his administration is gearing up for the effects of El Niño, including preparing buffer stocks and eyeing cloud-seeding operations to help bring rains amid potentially prolonged drought. Push to expand energy sources Marcos also talked in length about the government’s push to increase the country’s energy production and promote renewable sources. His administration targets to raise the share of renewable energy in the power generation mix to 35% by 2030, and then 50% by 2040. To achieve this, Marcos said the government has opened renewable energy projects to foreign investments, as he reported that 126 additional renewable energy contracts were awarded in the past year. The president also vowed total electrification of the country by the end of his term in 2028. ‘New face’ of drug war Amid renewed attention on the government’s war on drugs, Marcos said the campaign continues but has “taken on a new face” — one which he said is geared more towards treatment and rehabilitation. “We will relentlessly continue our fight against drug syndicates, shutting down their illegal activities. We will shut down their activities and dismantle their network of operations,” Marcos vowed. He also said he will accept resignations of law enforcers and other officials involved in the drug trade, saying he will not tolerate corruption or incompetence in his administration. Earlier, Marcos admitted that the Duterte administration’s drug war led to “abuses,” but he made no mention of these violations in both his first and second SONA. He also left out the International Criminal Court’s resumption of its probe into Duterte’s brutal crackdown — an inquiry the current administration has repeatedly opposed as it questioned the tribunal’s jurisdiction. More priority measures Finally, the president concluded his speech by again enjoining lawmakers to pass measures he deems as priorities. These include a number of proposed tax reforms, including imposing excise tax on single-use plastics and value-added tax on digital services. Among other measures, he also sought amendments to the Fisheries Code, the Anti-Agricultural Smuggling Act, and the Cooperative Code. Marcos likewise asked Congress to pass the proposed reforms to the pension system of the military and uniformed personnel, something Finance Secretary Benjamin Diokno earlier said could lead to a fiscal collapse if left unaddressed.

  • By Ted Cordero, July 19, 2023; GMA Integrated News https://www.gmanetwork.com/news/money/economy/876255/adb-maintains-ph-gdp-growth-projections-for-2023-2024/story/ The Asian Development Bank (ADB) has maintained its growth outlook for the Philippines this year and 2024. In the July 2023 edition of its flagship publication, Asian Development Outlook (ADO), the Manila-based multilateral lender said, “GDP (gross domestic product) forecasts are maintained at 6.0% in 2023 and 6.2% in 2024.” This is the same level that the multilateral lender projected for the Philippines’ economic growth rate in the April 2023 edition of ADO. The ADB’s forecast falls within the economic managers’ GDP growth projection of 6% to 7% for this year. “Robust investment and private consumption drove growth by 6.4% year-on-year in first quarter 2023, supported by rising employment, expanding production and retail sales, and brisk private and public construction,” the lender said. The economy, as measured by GDP, or the total value of goods and services produced in a specific period, grew by 6.4% from January to March 2023. n April, the lender cited recovery in employment and retail trade, sustained expansion in the manufacturing sector, and rising public infrastructure spending as factors supporting the Philippines’ growth. The ADB also maintained its growth projection for developing economies in Asia and the Pacific at 4.8% this year, “as robust domestic demand continues to support the region’s recovery.” The lender noted that the reopening of China is bolstering the region’s growth. “Asia and the Pacific continues to recover from the pandemic at a steady pace,” said ADB chief economist Albert Park. “Domestic demand and services activity are driving growth, while many economies are also benefiting from a strong recovery in tourism. However, industrial activity and exports remain weak, and the outlook for global growth and demand next year has worsened,” said Park.

  • By John Eric Mendoza, July 5, 2023; Inquirer.Net https://newsinfo.inquirer.net/1797893/marcos-inks-executive-order-to-streamline-construction-of-telco-internet-infra#ixzz87ax6Yqnf  MANILA, Philippines — In a bid to prop up the development of digital infrastructure in the country, President Ferdinand “Bongbong” Marcos Jr. signed an executive order streamlining the permitting process for the internet and telecommunications infrastructure, the Presidential Communications Office said on Wednesday. Executive Order No. 32 signed by Marcos on Tuesday covers all national government agencies and instrumentalities, including government-owned or controlled corporations, as well as local government units involved in the issuance of permits, licenses, clearances, certifications, and authorizations. “No other national or local permit or clearance shall be required in the construction, installation, repair, operation, and maintenance of telecommunications and Internet infrastructure,” the EO stated regarding streamlined requirements on infrastructure construction. The order covers the construction, installation, repair, operation, and maintenance of Shared Passive Telecommunications Tower Infrastructure, as well as the erection of poles, installation of aerial and underground cables and facilities, underground fiber ducts, ground terminals, and other transmission telecommunications and Internet infrastructure and facilities. On the other hand, exempted in the President’s order are building permits issued by the Office of the Building Official, Height Clearance Permit from the Civil Aviation Authority of the Philippines, homeowners associations and other community clearances, clearances from other government agencies, and other requirements as mandated by the Constitution and existing laws.

  • By Jose Cielito Reganit, July 7, 2023; Philippine News Agency https://www.pna.gov.ph/articles/1205153 Manila – The House of Representatives on Friday vowed to extensively deliberate and pass the proposed PHP 5.768-trillion National Expenditure Program (NEP) for 2024 before the year ends. Speaker Martin Romualdez said the House will also fast-track the approval of the priority bills of President Ferdinand R. Marcos Jr. this year. “Mas lalong magta-trabaho ang inyong Kamara de Representantes sa pagbubukas ng 2nd Regular Session nitong kasalukuyang buwan na ating sisimulan sa SONA (State of the Nation Address) ng ating Pangulong Marcos (Your House of Representatives will work doubly hard upon resumption of the 2nd Regular Session that starts later this month with President Marcos’ SONA),” he said in a statement. Romualdez said the House will use its “power of the purse” mandate to comprehensively scrutinize the national budget. Various panels, he said, will continue working during deliberations of the proposed 2024 NEP, while some committees may be authorized to pursue the performance of its mandate of passing vital pieces of legislation when the House starts plenary deliberations of the national budget. Romualdez said if the productivity of the House of Representatives during the first year of the 19th Congress is an indication, he is confident that the chamber can accomplish its goals for the rest of 2023. “If members of the House of Representatives will work with the same passion and vigor they exhibited during the First Regular Session, I have no doubt that we can do better this time around,” he added. During the first 10 months of the 19th Congress, the chamber has processed a total of 9,600 measures – 8,490 bills, 1,109 resolutions and one petition. This is an average of 30 measures for each session day. Lawmakers also approved on third and final reading 33 out of 42 bills listed as priority measures of President Marcos and the Legislative-Executive Development Advisory Council (LEDAC), which forms part of the total 577 bills passed on final reading, including the PHP5.268-trillion 2023 national budget. “Processes and systems can always be improved. I believe there are still better ways we can perform our mandate of legislation without sacrificing the quality of our work,” he said.

  • By Catherine S. Valente, July 6, 2023; The Manila Times https://www.manilatimes.net/2023/07/06/news/president-hands-congress-20-priority-measures-to-be-passed-by-dec/1899384 President Ferdinand Marcos Jr. has approved 20 bills as part of the priority measures of the Legislative-Executive Development Advisory Council (LEDAC) that he wanted to be passed by Congress by December this year, Budget Secretary Amenah Pangandaman said Wednesday. Marcos approved 18 past priority bills and two new legislations during the second LEDAC meeting in Malacañang on Wednesday. “We agreed on the first 18 priority bills for passage by December 2023,” Pangandaman said in a phone patch interview. Among these measures include the Amendments of the Build-Operate’Transfer Law/Public–Private Partnership bill, National Disease Prevention Management Authority, Internet Transactions Act/E-Commerce Law, Health Emergency Auxiliary Reinforcement Team Act, formerly Medical Reserve Corps, Virology Institute of the Philippines, Mandatory ROTC and NSTP, Revitalizing the Salt Industry, Valuation Reform, E-Government/E-Governance, and Ease of Paying Taxes. Also being targeted to be passed late this year are the National Government Rightsizing Program, Unified System of Separation/Retirement and Pension of MUPs, LGU Income Classification, Waste-to-Energy bill, New Philippine Passport Act, Magna Carta of Filipino Seafarers, National Employment Action Plan, and Amendments to the Anti-Agricultural Smuggling Act. Pangandaman said the two new bills are the Bangko Sentral ng Pilipinas-endorsed Bank Deposit Secrecy and Anti-Financial Account Scamming Act (AFASA) bills. “It will help yung for money laundering cases, problems on terrorism and if there’s court cases really need evidence or documents that will show that there are problems or there is an issue with regards to money, so the Bangko Sentral can open their account,” Pangandaman said referring to Bank Deposit Secrecy bill. On the other hand, she said the AFASA bill aims to protect consumers from cybercrimes such as phishing and money mules. “There is one item there that shows you know usually if it’s part of the LEDAC, we expect the Office of the President to issue a certification,” Pangandaman added. In a separate statement, Presidential Communications Secretary Cheloy Garafil said that 18 of the 20 bills were part of the 42 priority legislative measures during the first LEDAC meeting in October 2022. “Of the 42 bills, three (RA 11934 or An Act Requiring the Registration of Subscriber Identity Module; RA 11935 or the Postponement of Brgy./SK elections and RA 11939 or Amendment to AFP Fixed Term) had been signed into law while three (RA HB 6608 or the Maharlika Investment Fund Act, HB 7751 or the Department of Health Specialty Centers Act and HB 6336 or New Agrarian Emancipation Act) are for the President’s signature,” she said. Garafil said the other priority measures include the Passive Income and Financial Intermediary Taxation Act , National Land Use Act, Enabling Law for the Natural Gas Industry, Apprenticeship Law, Philippine Ecosystem and Natural Capital Accounting System, Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery, Free Legal Assistance for Police and Soldiers, Negros Island Region, Leyte Ecological Industrial Zone, Eastern Visayas Development Authority, Philippine Immigration Bill, Comprehensive Infrastructure Development Master Plan, and, Magna Carta of Barangay Health Workers. “Five bills are in various stages of the legislative process: Budget Modernization Bill, Amendments to the Electric Power Industry Reform Act, Department of Water Resources, National Defense Act, and, Amendments to the Universal Healthcare Act,” she added. Speaker Ferdinand Romualdez said of the remaining 36 priority measures from the first LEDAC, they have passed 32 measures on third and final reading in the House of Representatives. On top of the SONA priority bills, several legislative measures are also being proposed for inclusion in the common legislative agenda (CLA). Pursuant to RA 7640, LEDAC serves as a consultative and advisory body to the President on certain programs and policies essential to the realization of the goals of the national economy. The CLA is a list of priority legislative measures of the Executive and Legislative branches of government, which the Council has agreed to actively pursue to be passed in Congress.

  • By Ronnel W. Domingo, July 5, 2023; Philippine Daily Inquirer https://business.inquirer.net/408635/ph-inflation-further-eased-to-5-4-in-june Manila – Inflation in the Philippines eased for the fifth consecutive month in June to 5.4 percent, the lowest in 13 months,  according to the Philippine Statistics Authority. This brought the average inflation rate in the first semester of the year to 7.2 percent. The readout for June is better than the expectation of the Bangko Sentral ng Pilipinas (BSP), whose guess was 5.7 percent,  and close to the low end of the BSP’s forecast range of 5.3 percent to 6.1 percent. National Statistician Dennis Mapa said the downward pull on headline inflation was mainly from slower increases in prices of meat, fruits and sweets; gasoline, diesel and road transport fare, as well as electricity and home rent. The latest readout — for June and for the semester — is still above the BSP’s goal of shepherding inflation to 3 percent or a range of 2 percent to 4 percent, but the regulator expects the monthly print to ease into the target band by the fourth quarter this year.

  • By Ruth Abbey Gita-Carlos, June 30, 2023; Philippine News Agency https://www.pna.gov.ph/articles/1204620 MANILA – Advocacy group LGBT Pilipinas has called on President Ferdinand R. Marcos Jr. to form a presidential advisory body or commission that will look into the affairs of the LGBTQIA+ (lesbian, gay, bisexual, transgender, queer, intersex, asexual and more) community. The LGBT Pilipinas pitched the proposal, with a hope that it would be endorsed by First Lady Liza Araneta-Marcos who witnessed the oath-taking of its new set of officers led by its national president, Director Dindi Tan. Araneta-Marcos expressed confidence that her husband would heed the LGBT Pilipinas’ request as a “way of giving back” to the LGBTQIA+ members who  supported his presidential bid in the May 9, 2022 national elections. “Knowing my husband, I’m sure he will grant the wish because he knows that you all campaigned for him and he wouldn’t be there without you guys,” she said, adding that the proposal would make them “stronger than ever.” The proposal was made to ensure the LGBTQIA+ community’s visibility and representation in the bureaucracy. The President and the First Lady hosted a gathering with LGBT Pilipinas members at Malacañan Palace in Manila on Thursday, in line with the celebration of Pride Month in June. In his speech, Marcos assured the LGBTQIA+ community of his administration’s commitment to give them equal treatment and uphold gender equality. “No questions asked, that’s it. We should all be treated the same. And that’s what we are continuing to try to do,” Marcos said. “‘Yung pagkatao ang tinitignan natin, hindi kung anu-ano pa (We are looking at the character, nothing else). That’s the principle that we follow with this administration and with this governance,” he added. Marcos also stressed that his wife is “even better briefed” on the legal issues affecting the LGBTQIA+ community. The proposed national anti-discrimination law is still being deliberated in Congress. Pending the bill’s passage, LGBT Pilipinas made a commitment to help local government units pass their respective ordinances on anti-discrimination based on sexual orientation, gender identity or expression and sexual characteristics. A similar ordinance has already been passed by the local governments of Cebu, Bacolod and Davao cities. In 2022, the United Nations Human Rights Council urged the Philippines to pass a gender equality bill and other similar measures protecting the LGBTQIA+ community. Established in June 2016 and registered with the Securities and Exchange Commission, LGBT Pilipinas serves as a  national alliance of LGBTQIA+ organizations, networks and allied groups across the country. LGBT Pilipinas has been working side by side with the government to remove the barriers that hold people back with regard to sexual orientation and gender identity. The organization has grassroots following in 76 out of 81 provinces in the country with more than 120,000-strong membership in Luzon, Visayas and Mindanao. (PNA) 

  • By Ferdinand Patinio, June 29, 2023; Philippine News Agency https://www.pna.gov.ph/articles/1204614 MANILA – The Regional Tripartite Wages and Productivity Board (RTWPB) in the National Capital Region (NCR) has granted a PHP40 salary increase for minimum wage earners in the private sectors. In a statement on Thursday, the Department of Labor and Employment (DOLE) said the board issued Wage Order No. NCR-24 on June 26, granting the daily wage adjustment. With the RTWPB’s decision, the daily minimum wage in Metro Manila has increased from PHP570 to PHP610 for the non-agriculture sector. For the agriculture sector, service and retail establishments with 15 or less workers, and manufacturing establishments regularly employing less than 10 workers, the employees will now be getting PHP573 from PHP533. “In accordance with existing laws and procedures, the wage order was submitted for affirmation to the National Wages and Productivity Commission (NWPC) on June 26, 2023,” the DOLE said. The NWPC affirmed the wage order on June 27 and authorized its publication on June 30. “The wage order is to take effect after 15 days from its publication, or on 16 July 2023,” the DOLE said. The wage order is expected to benefit 1.1 million minimum wage earners in NCR. About 1.5 million full-time wage and salary workers earning above the minimum wage may also indirectly benefit as a result of upward adjustments at the enterprise level arising from the correction of wage distortion. The increase, which considered the various wage determination criteria provided under Republic Act No. 6727 or the Wage Rationalization Act, resulted from several petitions filed by various labor groups seeking an increase in the daily minimum wage due to escalating prices of basic goods and commodities. The Board, comprised of representatives from the government, management and labor sectors, conducted a public hearing on June 21 in Pasay City and a wage deliberation on June 26 in Manila. The new rates, which translate to a 7 percent increase from the prevailing daily minimum wage rates in the region, remain above the regional poverty threshold of PHP452 per day for a family of five. These likewise result in a comparable 7 percent increase in wage-related benefits covering 13th month pay, service incentive leave (SIL), and social security benefits such as Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and Pag-IBIG. “As in any wage order, and as provided for in the NWPC Omnibus Rules on Minimum Wage Determination, retail/service establishments regularly employing not more than ten workers, and enterprises affected by natural calamities and/or human-induced disasters may apply to the RTWPB for exemption from the wage increase. Barangay Micro Business Enterprises (BMBEs) are not covered by the minimum wage law pursuant to Republic Act No. 9178 [2002],” the order said. “RTWPB-NCR shall undertake information campaigns to ensure compliance and to provide assistance to enterprises in correcting possible wage distortions. For exemption applications and further clarifications on the wage order, the RTWPB may also be reached through its email address wage_ncr@yahoo.com.ph,” it added. The last Wage Order for workers in private establishments in the region was issued on May 12, 2022 and became effective on June 4, 2022. (PNA)

  • By Business World, June 26, 2023; Business World https://www.bworldonline.com/infographics/2023/06/26/530519/philippines-lags-in-market-potential-index/ The Philippines dropped by 32 notches to rank 52nd out of 97 countries with an overall score of 23 (out of 100) in the 2022 edition of the Market Potential Index by Michigan State University-International Business Center. The index ranks countries on their market potential to provide guidance to US companies that plan to expand their markets internationally. The country was also one of the laggards in the region, alongside Thailand and Cambodia.

  • By Jean Mangaluz, June 23, 2023; Philippine Daily Inquirer https://newsinfo.inquirer.net/1792283/marcos-jr-approves-p5-7-trillion-national-expenditure-program-for-2024?utm_source=gallery&utm_medium=direct MANILA, Philippines — President Ferdinand “Bongbong” Marcos Jr. has approved the  P5.768 trillion National Expenditure Program (NEP) for 2024, according to the Department of Budget and Management (DBM) on Friday. The 2024 NEP is 9.5 percent higher than this year’s P5.268 trillion budget. It is also 21.8 percent of the country’s gross domestic product. DBM Secretary Amenah Pangandaman said the NEP for 2024 was created with the Philippine Development Plan (PDP) 2023-2028, and the eight-point socio-economic agenda in mind. “It shall continue to reflect our commitment to pursue economic and social transformation to address the scarring effects of the pandemic, as well as the impact of inflation, by prioritizing shovel-ready investments in infrastructure projects, investments in human capital development, and sustainable agriculture and food security, among others,” Pangandaman said in a statement. According to her, the NEP was a product of several factors, including each agency’s budget utilization rates as well as the alignment of their programs, activities and projects. “We also referred to the agencies’ respective absorptive capacity, as we considered that a low budget utilization rate may reflect the agency’s limited capacity to utilize additional funds,” Pangandaman said. She said the NEP will be submitted to Congress a few weeks after the President’s State of the Nation Address on July 24. According to DBM, the NEP will serve as the government’s spending plan for each year and is deliberated in both chambers of Congress. Once it is approved, the program is signed into law and will be known as the General Appropriations Act.

  • By Justine Irish D. Tabile, June 20, 2023; Business World https://www.bworldonline.com/top-stories/2023/06/20/529563/phl-competitiveness-ranking-dips-report/ The Philippines dropped four spots in an annual global competitiveness report amid global inflation, public health crises, and geopolitical concerns. In its 2023 World Competitiveness Yearbook, Switzerland-based International Institute for Management Development (IMD) placed the Philippines 52nd out of 64 economies, from 48th in 2022. This year’s drop marked the sixth year that the Philippines stayed in 13th place out of 14 economies in the Asia-Pacific region. IMD ranked the economies using 255 indicators spread across four competitiveness factors: economic performance, government efficiency, business efficiency, and infrastructure. “The Philippines suffered declines in three out of the four main factors or dimensions of Competitiveness,” the Asian Institute of Management (AIM) Rizalino S. Navarro Policy Center for Competitiveness said in a statement. The center has been the IMD’s Philippine partner institute in producing the competitiveness yearbook since 1997. The Philippines declined a notch to 58th in 2023 in the infrastructure factor, which the IMD described as a perennial challenge for the country. Foundation for Economic Freedom (FEF) President Calixto V. Chikiamco said the decline is “not surprising and that the comments are valid.” “Infrastructure remains poor and inefficient, like the Ninoy Aquino International Airport. Power availability is uncertain. Water will be rationed. The poor infrastructure and services are turning off investors,” Mr. Chikiamco said in a Viber message. To improve, the Philippines should adopt a whole-of-nation approach, he said. “Get private sector involved, for example, expand the school voucher system to cure the ills in education; abolish quantitative restrictions in food imports; get more public-private partnerships in infrastructure done; hasten implementation of Public Service Act Amendment to woo foreign investors,” he said. The country’s business efficiency factor dropped to 40th in 2023 from 39th in 2022 while its government efficiency factor suffered the biggest decline — to 52nd in 2023 from 48th in 2022, according to IMD. The Philippines also declined in all the sub-factors under government efficiency: to 55th from 51st in public finance; dropping one place to 14th in tax policy; to 56th from 53rd in the institutional framework; falling five places to 57th in business legislation; and to 53rd from 50th in the societal framework. Meanwhile, the country saw an improvement in the economic performance factor, jumping 13 places to 40th. Sub-factors under economic performance saw better results: to 30th from 48th in domestic economy, to 9th from 19th in employment, and to 39th from 58th in prices. The Philippine economy expanded by 7.6% in 2022, surpassing the Development Budget Coordination Committee’s (DBCC) 6.5-7.5% target for the year and better than the 5.7% gross domestic product (GDP) growth in 2021. In the first quarter, GDP expanded by 6.4%, marking the slowest pace in two years and settling within the government’s 6-7% target for the year. Meanwhile, the unemployment rate further eased in April this year to 4.5% from 4.7% in March and 5.7% in April last year. It was the lowest jobless rate since 5.3% in January 2020. Inflation cooled in May, the lowest so far in 2023, to 6.1% from 6.6% in April. Although slowing down, the rise in consumer prices in May was still faster than the 5.4% a year earlier and marked the 14th straight month it breached the central bank’s 2-4% goal. The IMD said the Philippines continues to face challenges in sustaining economic recovery and growth momentum amid global downside risks and in strengthening social protection and healthcare systems for inclusive development. It noted that the country also faces problems in addressing learning gaps, reducing climate change vulnerability, and reinforcing efficient public management strategies to support fiscal responsibility. Rizal Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that “the decline in the country’s competitiveness ranking largely brought about by higher prices or inflation that reduced purchasing power and a drag on economic growth.” “Higher inflation locally and worldwide since 2022 resulted in higher interest rates that increased borrowing/financing costs for consumers, businesses/industries, government, and other institutions, thereby could have also slowed down investments and overall economic growth,” he added. Mr. Ricafort said the recession in the US, slowed down exports and foreign direct investments, while the pandemic lockdown weighed on the Philippines’ competitiveness despite easing restrictions in the latter part of 2022. Most Competitive Denmark topped the competitiveness index again in 2023, followed by Ireland and Switzerland in second and third places, respectively. In the Asia-Pacific region, the top three most competitive economies are Singapore, Taiwan, and Hong Kong — in that order.  “Political fragmentation is a result of COVID-19 and the Ukraine war, and a major upshot is that more and more countries — Singapore, Saudi Arabia and India, for example — are pursuing their own interests,” said Arturo Bris, director of IMD’s World Competitiveness Center. “With inflation pressures easing and uncertain stock markets, we are now able to see winners and losers in a context where multiple crises overlap,” Mr. Bris said. The countries covered by the 2023 World Competitiveness ranking were different from the 2021 report after Kuwait joined the list for the first time, ranking 38th out of 64 economies. Meanwhile, Russia and Ukraine were not assessed due to limited data reliability, the IMD said.

  • By Dona Z. Pazzibugan, June 16, 2023; Philippine Daily Inquirer https://newsinfo.inquirer.net/1788870/comelec-to-charge-7000-for-multiple-registrations The Commission on Elections (Comelec) is taking to court only 7,000 out of the 120,000 people who deliberately registered as voters two times or more in several areas. “We have started filing complaints against 7,000 multiple registrants,” Comelec Chair George Garcia said on Thursday at a news briefing in Laoag, Ilocos Norte, which officials of the poll body visited in preparation for the Oct. 30 barangay and Sangguniang Kabataan elections. Charges of violating the Voter’s Registration Act of 1996, or Republic Act No. 8189, would be filed against the multiple voter registrants, with Garcia saying the Comelec would not accept their excuse of having no ulterior motive for their action. “Even if they claim they did not know [their previous voter registrations were still valid], good faith is not a defense,” he added. While the Comelec law department files the charges in court, the poll body will also notify the election registration boards concerned to remove from the official list of registered voters the names of the multiple registrants, Garcia said. Last month, the Comelec reported the discovery of 491,017 double or multiple registrants following the last round of voter registration in January with the help of the automated fingerprint identification system that detected entries of the same set of fingerprints. The poll body said that in most cases, the registrant was not at fault since they registered in another area due to a change of address. However, at the time they signed up, the Comelec had yet to delete their original registration. In the case of 118,178 multiple registrants, they appeared to have “a clear design to become double or multiple registrants” since they used either the same or another name, address and picture, according to the poll body.

  • By Mario Casayuran, June 9, 2023; Manilla Bulletin https://mb.com.ph/2023/6/9/poe-urges-lto-to-review-chaotic-digitalization-program Senator Grace Poe, chairperson of the Senate public services committee on Friday, June 9, called on the Land Transportation Office (LTO) to make a thorough assessment of its digitalization program to deliver badly-needed efficient and fast service to the public. “Years in implementation and billions of money spent later, the Land Transportation Office’s digitalization initiative leaves much to be desired,” Poe said. She pointed out that the LTO is still plagued with the same old problems — slow if not unserviceable portal, long lines during application or renewal of licenses or registration, backlogs in license plates and recently, close to 700,000 shortage in requirements as basic as plastic license cards. “These show the agency’s digitalization plan is chaotic. Kumbaga sa computer software, nasa beta phase pa rin (Like in computer software, it is still in beta phase).  Puro testing, hindi na umusad sa final implementation (It still still in the testing phase. It has not moved to final implementation),” she said. Poe’s panel, together with the Senate Blue Ribbon committee on Thursday, quizzed LTO officials about its P3.19-billion Road Information Technology infrastructure project amid allegations of corruption. A 2021 Commission on Audit (COA) report has found that LTO has made “undue” and “unjust” payments to firms which allegedly failed to deliver the project.  “Why was the payment made despite the reported issues and deficiencies of the provider? What has the LTO done about this?” Poe asked. Poe said the problems hounding the country’s land transportation agency have already piled up. Band-aid or stopgap measures are not the remedies. “Hindi pwedeng kapag nagkaubusan ng plastic license cards, papel muna ang driver’s license (Issuing driver’s license on paper when there is a shortage of plastic license cards is a no no). O kaya naman dahil ubos na ang plaka para sa motor, do-it-yourself na plaka muna ang gamitin Or when car plates are no longer available, you allow do-it-yourself plates),’’ she added. The lawmaker emphasized that LTO’s  digitalization program should be accelerated and make transaction with the public eased. Poe said the LTO should get to the bottom of its longstanding problems and get it back on track to fulfill its mandate of delivering fast and efficient public service.

  • By Cristina Chi, June 9, 2023; Philippine Star https://www.philstar.com/headlines/2023/06/09/2272662/new-bill-same-problem-lawmakers-bat-more-prison-facilities-solve-jail-congestion MANILA, Philippines — In a bid to ease the prolonged strain felt by persons deprived of liberty (PDLs) in the country’s limited jail facilities, House lawmakers have introduced a measure creating new penal facilities in 11 regions. By adding to the seven existing correctional facilities in the country, the bill aims to accommodate and improve the living conditions of the country’s increasing number of PDLs, many of whom stay in overstuffed jails while undergoing or awaiting trial. “The Constitution vehemently opposes the use of substandard or inadequate penal facilities under subhuman conditions. Despite the said mandate, there are only seven existing correctional facilities in the country which are under the jurisdiction of the Bureau of Corrections (BuCor),” said Rep. Paolo Duterte (Davao City) and Rep. Eric Yap (Benguet), authors of House Bill 8071. The proposed Regional Penitentiaries Act seeks to create additional correctional facilities under the Bureau of Corrections in Regions I, II, III, V, VI, VIII, IX, X, XII, XIII and the Cordillera Administrative Region to account for the growing number of inmates in the country. Currently, the country only has seven penal facilities. These are the New Bilibid Prison in Muntinlupa City; the Correctional Institution for Women in Mandaluyong City; Iwahig Prison and Penal Farm in Puerto Princesa City, Palawan; Sablayan Prison and Penal Farm in Occidental Mindoro; San Ramon Prison and Penal Farm in Zamboanga City; Leyte Regional Prison in Abuyog, Leyte; and the Davao Prison and Penal Farm in Panabo, Davao Province. The measure also underscores the importance of providing humane facilities for those serving their sentences by requiring newly established penal farms to have complete facilities, such as dormitories, hospitals, security fences, hospitals or infirmaries, training centers, among others. In the explanatory note of the measure, the bill’s authors cited the World Prison Brief’s declaration of the Philippines as “the most overcrowded prison system in the world” with 215,000 prisoners overfilling jails and prisons more than five times its capacity. This reflects the “long-term neglect” of the country’s prisoners, the bill’s authors wrote. Building more facilities an ‘appealing’ but ineffective solution The mere creation of more jails is not a sustainable solution to prison congestion, however, as the government also needs to rethink its policies regarding the incarceration of low-risk offenders, said international criminology expert Raymund Narag. Narag said that detention and arrest “should be limited to those PDLs or those accused or those whom we call high-risk criminals, those who have a high chance of reoffending or high chance of committing continuous crimes.” Narag emphasized the importance of maximizing the use of probation, parole, home confinement, and work furlough. These methods have not been fully explored in the Philippines and can contribute to a more comprehensive approach to correctional reforms, he added. According to the United Nations’ Office of Drugs and Crime’s handbook on strategies to reduce overcrowding in prisons, as “appealing” as it seems, the creation of new facilities to address cramped prisons is “generally ineffective.” “Evidence shows that as long as the shortcomings in the criminal justice system and in criminal justice policies are not addressed to rationalize the inflow of prisoners, and crime prevention measures are not implemented, new prisons will rapidly fill and will not provide a sustainable solution to the challenge of prison overcrowding,” the guidebook read. Inadequate prison infrastructure “should not be regarded as the principal “cause” of overcrowding, but often as a symptom of dysfunction within the criminal justice system,” it added.

  • By Lisbet Esmael, June 7, 2023; CNN Philippines https://www.cnnphilippines.com/business/2023/6/7/worldbank-ph-2023-forecast.html Metro Manila (CNN Philippines, June 6) — The World Bank’s outlook for the Philippine economy improved this year as it expects robust demand in the local market to continue despite global headwinds. In a statement on Wednesday, the World Bank said it has upgraded its growth forecast for the Philippines to 6% from 5.6% in March. The latest forecast is within the 6% to 7% target of the national government. “Strong domestic demand is underpinned by consumer spending drawing strength from the continuing jobs recovery and the steady flow of remittances,” the bank said. “Fixed capital investment will also contribute to growth, anchored on upbeat domestic activity, and improved business confidence,” it added. The country’s services sector will likewise enjoy a spillover from the reopening of China economy, which could spur growth in the local space. As many nations axed COVID-19 travel rules, the World Bank noted that the Philippines can gain from boosted transportation services, accommodation, and food services, as well as wholesale and retail trade services. The information technology-business process outsourcing sector would also continue to be a bright spot for growth in the Philippines, with foreign businesses seeking to cut costs. Recent amendments to the Public Service Act, Foreign Investment Act, and Retail Trade Liberalization law could also bolster the Philippines’ target of enticing more foreign investors, subsequently supporting its growth over the medium term. But an official of the World Bank warned that global and domestic risks may dampen the economy’s recovery and poverty reduction. “It is essential to sustain improvements in social protection to help families, especially the poor and vulnerable, cope with economic difficulties as the country navigates the global slowdown, budget constraints, high prices of basic commodities, and climate-related risks,” said Ndiamé Diop, World Bank country director for Brunei, Malaysia, Philippines, and Thailand. Locally, threats seen include elevated inflation, looming El Niño, as well as logistics and supply chain challenges. Philippine authorities earlier noted that the rate of increases in commodity prices has been on a downward trend. The World Bank also noted that global risks are still the rising inflation and interest hikes worsened by geopolitical tensions. It also urged the government to hasten the following: adoption of the national ID system for social protection delivery, updating the targeting system for identifying poor and vulnerable families, innovations in digital payment systems, and strengthening financing mechanisms and readiness for disaster response. “In the face of escalating prices, a comprehensive strategy is needed to guarantee sufficient food for everyone. This entails a more productive agriculture and food system that is resilient to climate risks, serves all consumers, and competes effectively on both local and global markets,” added World Bank senior economist Ralph Van Doorn.

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