2.99 million Filipinos jobless as unemployment settles at 6 percent in June

A total of 2.99 million Filipinos were jobless in June as unemployment remained steady at 6 percent in June compared to May, data from the state statistics bureau said Monday. In May, there were 2.93 million jobless as unemployment hit 6 percent. June's total is also lower than the unemployment in June 2021 which was at 7.7 percent, equivalent to 3.77 million. Employment rate for the month was at 94 percent, equivalent to 46.59 million, the Philippine Statistics Authority said in a briefing. June's employment rate is similar to May's 94 percent, and higher than the 92.3 percent of 45.08 million in June 2021, data showed.

NG subsidies to GOCC plunge 49% in H1

The national government extended lower subsidies to state-run corporations in the first half of this year compared to a year ago. Latest data from the Bureau of the Treasury showed subsidies to government-owned and -controlled corporations (GOCCs) from January to June this year plunged by 49.4 percent to P44.69 billion from P88.28 billion recorded in the same period in 2021. Interestingly, the state-run Philippine Health Insurance Corporation (PhilHealth), which has been the top recipient of government subsidies since 2014, has yet to get its share of subsidies from the government since the start of the year even though the country is still in the middle of the Covid-19 pandemic.

Gov’t urged to review role of gas in energy transition

THE role of gas in the Philippines’ energy transition must be reviewed in light of the unreliability of supply from the Malampaya field and the drastic tightening of the market following the Russian invasion of Ukraine, a think tank said. Avril de Torres, deputy executive director of Center for Energy, Ecology, and Development (CEED), said during an online forum on Friday that securing renewable energy (RE) has been a recurring problem in the Philippines since 2016, especially for the Luzon grid.

Revenue bills like digital services VAT lead House priorities

THE House of Representatives will prioritize revenue measures like a 12% value-added tax (VAT) on digital transactions as well as ease of paying taxes programs, a senior legislator said on Thursday. Albay Rep. Jose Ma. Clemente S. Salceda, who heads the House Ways and Means Committee, told BusinessWorld via Viber in reply to a query that budget reform is also on the table. Rizal Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that “new tax measures or higher tax rates could lead to higher inflation, as seen in past, such as the TRAIN Law in 2018.”

Inflation seen losing steam by 4th quarter

Inflation is likely to lose steam in the fourth quarter of the year as global oil prices ease and the consumer price index (CPI) for housing, water, electricity, gas and other fuels decline, according to Moody’s Analytics. The research arm of the Moody’s Group said that the Philippines and other countries in Asia remain susceptible to the supply pressures coming through from supply-chain snags and higher commodity prices from Russia’s invasion of Ukraine. Inflation in the Philippines averaged 4.7 percent in the first seven months, exceeding the two to four percent target set by the Bangko Sentral ng Pilipinas (BSP). According to Moody’s Analytics, falling oil prices would take some heat out of transport prices. “It is too early to judge whether inflation has reached its peak, but inflation is likely to lose steam in the fourth quarter,” Moody’s Analytics said.

TWO QUARTERS IN A ROW: Agri output contracts 

The country’s agriculture production went down  0.6 percent in the second quarter of the year, pulled by the crops and fisheries subsectors, according to the Philippine Statistics Authority (PSA). For the first half,  output recorded a 0.4 percent decline although  the value of agricultural production at current prices was 6.2 percent higher at P532.79 billion from the previous year’s level. Production growths in livestock and poultry subsectors failed to offset the drop in crops and fisheries.

GIR falls to 2-yr low, at below $100B in July

The country’s dollar defenses against potential imbalances fell below $100 billion in July, as the Bangko Sentral ng Pilipinas (BSP) continued to battle excessive fluctuations in the local currency. Data from the BSP showed that the Philippines’s gross international reserves (GIR) settled at $98.8 billion as of end-July this year. This is the lowest GIR of the country in two years or since July 2020. It is the fifth consecutive month of decline for the GIR, starting from a level of $107.7 billion at the start of the year. Breaking down the data, the biggest hit of the GIR came from the decline in the value of its dollar investments—which make up the bulk of the country’s GIR. Foreign investments hit $82.5 billion in July, down from the $84.7 in the previous month.

DOTr, DOT to set up TWG for airport, seaport devt

THE Department of Transportation (DOTr) and Department of Tourism (DOT) will be forming a technical working group (TWG)  to improve airports and seaports in the country. Transportation Secretary-designate Jaime J. Bautista told the BusinessMirror this was one of the agreements he reached with Tourism Secretary-designate Christina Garcia Frasco in their meeting on Monday at the DOTr office. “We agreed to create a joint TWG that would explore improvements at certain airports and seaports to help achieve a tourism rebound.” He added that Frasco presented to him a list of provincial airports that need improvements to better the access to tourist spots. “Our main focus, will be enhancements at the Naia [Ninoy Aquino International Airport], the Mactan Cebu International Airport, and the Davao International Airport.”

Marcos names Monalisa Dimalanta as new ERC chief

President Ferdinand Marcos Jr. appointed lawyer Monalisa Dimalanta as the new chairperson of the Energy Regulatory Commission (ERC), Malacañang announced on Friday. In a statement, Press Secretary Trixie Cruz-Angeles confirmed that Dimalanta will take the helm of the ERC, replacing Agnes Devanadera. Dimalanta's term will expire on July 10, 2029. Cruz-Angeles said Dimalanta served as chairperson of the National Renewable Energy Board (NREB) from 2019 to 2021.

IPOPHL: Creative sector devt law to boost awareness on copyright

THE Intellectual Property Office of the Philippines (IPOPHL) said the Philippine Creative Industries Development (PCID) Law will provide the agency its much-needed boost in raising awareness on intellectual property across the creative economy. IPOPHL Director General Rowel S. Barba said that since the initiative to develop this measure began, the agency has been in full support of and cooperation with Congress “to witness this legislative measure come to fruition.”

Consumers get relief from high energy rates 

Consumers will experience a temporary relief from the high cost of energy as the price of petroleum products are reduced effective today while power rates  in Metro Manila are set to decline this month as well. This week’s oil price rollback was attributed to the growing fears of traders of the possibility of an economic recession later this year which is expected to greatly cut demand for energy. According to the Department of Energy (DOE), the average Manila price per liter of gasoline (RON95) as of August 2 was   at P75.95, diesel at P74.90 and kerosene at P82.42. The DOE said as of August 2, year-to-date adjustments of petroleum products  summed to a  net increase of P19.65 per liter for gasoline, P32.35 per liter for diesel and P27.30 per liter for kerosene.

Resolution to PEZA leadership row up to Palace now, former head says 

CHARITO B. Plaza, the former director-general of the Philippine Economic Zone Authority (PEZA), said the dispute over the agency’s leadership is in the Palace’s hands and promised to abide by its decision. Ms. Plaza told BusinessWorld via mobile phone that President Ferdinand R. Marcos, Jr. has the final say on whether she is to retain her post, for which an officer-in-charge (OIC) was named after the previous government stepped down. “I am glad (that) the Palace will finally come in to resolve the leadership row,” Ms. Plaza said. “My appointment papers (issued by) then-President Rodrigo R. Duterte say that I am covered by the Civil Service Commission’s (CSC) rules; hence, my security of tenure will depend on the President,” she added. Press Secretary Rose Beatrix L. Cruz-Angeles has said that the resolution of the PEZA leadership dispute is subject to the “usual procedures.”

IPOPHL adopts new processes for adjudicating IP cases 

The Intellectual Property Office of the Philippines (IPOPHL) is adopting various electronic measures in adjudicating intellectual property (IP) cases, in a bid to streamline its processes for the convenience and safety of its stakeholders. In a statement, the agency said the move was made effective through Memorandum Circular (MC) 2022-013, which amended the rules and regulations on inter partes proceedings. “The adoption of electronic measures – which was part of our Bright Agenda for an end-to-end automated or digitized process – was a lifesaver for our stakeholders during the pandemic as these ensured continued access to and delivery of our services, including adjudication and alternative dispute resolution of our Bureau of Legal Affairs (BLA),” said IPOPHL director general Rowel Barba.