ECCP is ARTA champion
To further improve the ease of doing business in the Philippines, the Anti-Red Tape Authority (ARTA) and the European Chamber of Commerce of the Philippines (ECCP) signed on Tuesday a memorandum of understanding authorizing ECCP to receive complaints from the business sector for any violation of the Ease of Doing Business Act. “The state has the right to regulate, but there’s a point where the length of procedures (or the) burden of additional procedures becomes high for companies or citizens,” Philipp Dupuis, head of the Economic Trade Section of the Delegation of the European Union, said.

DBCC reviewing revenue, expenditure targets

The DICT is aiming to award three contracts worth a total of P766 million under its national data center project by the third quarter. The bid submission and contract signing for the project are slated for the first and third quarters, as per the department’s procurement plan for the year. The DICT is allocating a total of P766 million for the project, of which P192 million is set aside for the data center colocation. The contract is scheduled to be awarded by the third quarter of the year.

Digital transactions VAT bill elevated to Senate plenary 

The committee report of a Senate bill seeking to impose a 12% value-added tax (VAT) on digital transactions has been sponsored out to the plenary. Ways and Means Committee chairman Senator Sherwin T. Gatchalian, who sponsored Senate Bill No. 2528, said the measure will require nonresident electronic marketplaces to withhold and remit VAT on transactions that are coursed through their platforms for Philippine-based buyers. 

Recto encouraged by further drop in inflation, pushes for more deliberate implementation of inflation reduction strategies

Finance Secretary Ralph G. Recto was encouraged by the further drop in the Philippines’ headline inflation to 2.8% in January 2024 and pushed for a more deliberate implementation of the Reduce Emerging Inflation Now (REIN) plan to keep the prices of goods and services stable. The REIN plan involves closely monitoring financial assistance programs for vulnerable sectors, enhancing agricultural production and imports, and mitigate oil inflation. 

ARTA backs pre-approval system to address long processing times

“What we are suggesting is to have a pre-approval system, meaning the agencies will approve the business permits first with the undertaking that they will submit the pending requirements, say in 20 days, or risk revocation,” ARTA Secretary Ernesto Perez said. “This is what other countries do; they approve the permits first or even allow them to operate as long as it is not critical,” he added

NEDA cites need to lower telco barriers to entry

“The telecommunications sector in the Philippines is currently at a crossroads, marked by robust demand against a backdrop of challenging geography and market concentration,” NEDA said. The agency stated that the industry faces challenges such as high costs, slow broadband speed and inadequate coverage. “The impact of insufficient data transmission infrastructure spans multiple sectors such as education, business process outsourcing (BPO), healthcare, and disaster response,” it added.

PH sea cargos recover prepandemic volume

Local sea terminals continued to show increasing activities as cargo movements last year surpassed prepandemic levels due to foreign shipments although passenger traffic has yet to fully recover, according to data from the Philippine Ports Authority. Cargo throughput last year grew by about 5 percent to 271.97 million metric tons (MT) from 259.14 million MT in 2022. The latest print also exceeded the prepandemic volume of 265.88 million MT in 2019.

DICT plans to award three contracts for data center plan by Q3

THE Department of Information and Communications Technology (DICT) is aiming to award three contracts worth a total of P766 million under its national data center project by the third quarter. The bid submission and contract signing for the project are slated for the first and third quarters, as per the department’s procurement plan for the year.

ROW process for Mindanao railway underway 

The government is focused on securing right-of-way and acquiring land for the Mindanao Railway project for the meantime as it has yet to find a new funding source for the infrastructure after writing off China as the financing source. Transportation Secretary Jaime Bautista said they are working with the Department of Finance in negotiating with foreign governments and multilateral lenders interested in bankrolling the first rail system in Mindanao.

Unemployed Filipinos down to 1.6 million in December 2023 — PSA 

National Statistician and PSA chief Claire Dennis Mapa reported that the number of unemployed persons ages 15 and above declined to 1.6 million in December 2023, down from 1.83 million in the previous month. This means that the number of jobless individuals decreased by 617,000, lower than the 2.22 million unemployed Filipinos in the same period in 2022.

Rice farmer funding support set at P22.9 billion

The Department of Agriculture (DA) said it allocated P22.9 billion for financial assistance to rice farmers, with the funding to go towards procuring farm inputs and providing technical support. In Memorandum Order No. 8, the DA said the inputs designated for funding are hybrid seed, fertilizer, and biofertilizer. The DA said late last year that it will digitalize the procurement and distribution of agricultural inputs to its beneficiaries.

DPWH, House to cure gaps in government infra spending in 2024 

At Monday’s briefing with Department of Public Works and Highways (DPWH) officials, House Committee on Public Works and Highways Chairman Romeo Momo strongly backed President Ferdinand Marcos Jr.’s “Build, Better, More (BBM) Program” as he sought a bigger budget for the DPWH. One critical revelation at the session involved the significant budget cuts affecting crucial DPWH priority programs. 

BSP: Only a ‘sustained’ dip in prices justifies an easing

The Bangko Sentral ng Pilipinas (BSP) remains hawkish despite commodity prices slowing to 2.8 percent, the slowest in 39 months or four years and within the BSP’s forecast range of 2.8 to 3.6 percent for January. BSP said inflation could increase higher than the target range in the second quarter due to El Niño weather conditions and positive base effects. 

DOTr allots ₱14-billion budget for aviation upgrading projects

The Department of Transportation (DOTr) said on Tuesday it is set to embark on an ambitious P14-billion improvement plan for the aviation sector in 2024 to enhance airports nationwide. Notably, several of these projects will be executed under the public-private partnership scheme, with financial backing from the Asian Development Bank and the International Finance Corp. of the World Bank.

Treasury eyes at least P30B from retail bonds 

The government is looking to raise at least P30 billion from its first retail Treasury bond (RTB) offering for 2024. In a notice on its website, the Bureau of the Treasury (BTr) said it is planning to sell at a minimum P30 billion worth of five-year RTBs due 2029 and allow existing holders to exchange the debt due this year for the new bonds. The rate-setting auction is scheduled for Feb. 13.

Weak exports seen as main risk to PHL GDP growth target in 2024 

Sluggish overseas demand poses the biggest risk to Philippine growth this year, imperiling the official gross domestic product (GDP) target of 6.5-7.5%, BMI Country Risk & Industry Research said. In a report, BMI said the 6.5% to 7.5% target will be difficult to achieve this year despite the economy’s strong growth momentum especially amid a recession in the US and China, which jointly account for one-third of the country’s exports. 

Customs surpasses January collection target by 2% 

The Bureau of Customs (BoC) said it collected P73.329 billion in duties in January, surpassing its target for the month and its collection a year ago. Based on preliminary data, the agency said its January collection rose by 3.88% from P70.591 billion in the same month in 2023 and 2.16% higher than its P71.779-billion target for the month. The BoC attributed the higher collection to its “improved system of determining the customs value of imported goods, strengthened border protection, and concrete trade facilitation efforts.”

P3.4B released for tertiary education program 

The Department of Budget and Management has approved the issuance of a special allotment release order amounting to P3.41 billion for the implementation of the Universal Access to Quality Tertiary Education (UAQTE) Act, which formalizes zero-cost education and waivers of additional charges in universities and colleges. Approximately 74,262 learners for the UAQTE program for the school year 2024 will benefit from the allocated P3.41 billion fund, which covers expenses such as tuition and miscellaneous fees, accident insurance, and internet allowance. 

US backs PH semicon, critical minerals sectors

Ceferino Rodolfo, managing head of the Board of Investments (BOI), recently met with US Department of State Undersecretary for Economic Growth, Energy, and the Environment Jose Fernandez who acknowledged the Philippines’ significant growth in semiconductors and critical minerals industries. Fernandez committed to providing the Philippines an audience with the Minerals Security Partnership (MSP), a collaboration of 13 countries and the European Union which aims to catalyze public and private investment in responsible critical minerals supply chains globally.