PHL to fix weak spots in path to $500-B dream PHL to fix weak spots in path to $500-B dream PIDS: Pandemic deepened income gaps, hurt poor B S A B A C S A News By Cai U. Ordinario Bloomberg A C
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HILIPPINES’S incoming economic secretary HILIPPINES’S incoming ecoHEplanning pandemic was notArthe senio Balisacan plans to bol-Arnomic planning secretary “great equalizer” that many ster thesenio economy’s weak spots as Balisacan plans tohurt bolbelieved it to be, as it hester targets least 6-percent the ateconomy’s weak annual spots as the poor more and exacerbated growth throughout term of Preshe targets at leastthe 6-percent annual existing inequalities in the ident-elect Ferdinand Marcos Jr. growth throughout the term ofcounPresThe according next Ferdinand administration must try, to the Philippine ident-elect Marcos Jr. boost investment in agriculture Studand for administration Development Institute Th e next must manufacturing and build infrastrucboost investment in agriculture and ies (PIDS). ture to grow the and economy between manufacturing build infrastructhe launch of the DevelAt 6-8 percent annually to 2028,between Baliture to grow the Research economy opment Policy Month sacan said in an interview Wednes6-8 percent annually to 2028, Bali(DPRM) on Thursday, PIDS Senior day. sacan said in an interview WednesResearch Valerie Gilbert Farm andFellow industry output cur-T. day. Ulep said and more poor than rently account for less Filipinos than 40 perFarm industry output curthose belonging higher-income cent of gross domestic product, rently account fortoless than while 40 perhouseholds a decline in their cent of gross saw domestic product, while
services contributes the majority. “I wouldcontributes like to see those weakest services the majority. points the of the adminisincome andpriority losttotheir jobs. “Ias would like see those weakest tration,” said 64-year-old, who’s points thethe priority of the adminisUlepas said more Filipinos becurrently of the nation’s tration,”chairman saidpoor the 64-year-old, who’s longing to households also antitrust commission. currently chairmanand of severe the nation’s moderate food suffered Consistently growing at the rate antitrust commission. insecurity during the pandemic. of 6 percent for sixgrowing years will make Consistently at the rate “The Covid-19 pandemic exacerPhilippines a for half-a-trillion dollar of 6 percent six years will make bated theaccording long-standing inequities economy, to Bloomberg Philippines a half-a-trillion dollar society,”according Ulep said in presentaof calculations. economy, to aBloomberg The nation’s first-quarterinexpantion. “These disparities human calculations. sion of percentfiis alreadythe among outcomes reflect struccapital Th8.3 e nation’s rst-quarter expanAsia’s thanks the reopensionfastest, of 8.3 percent istopersisted already among tural inequities that even ing fromfastest, the pandemic.” pandemic. MarAsia’s thanks toStill, the reopenthe before cos’s team faces ingIn from the immediate pandemic. challengStill, Maranother Nationes:cos’s inflation is atpresentation, its fastest inchallengthree team faces immediate al Economic and Development Auyears, budget has widened es: infl ation isdefi at cit its fastest in three thority (Neda) Undersecretary for and the global outlook dimmed. years, budget deficithashas widened and Policy Rosemarie G. Planning Still, Balisacan said the economy and the global outlook has dimmed. can expand bythe at least 7 percent this Edillon pandemic Still,said Balisacan said thedisplaced economy 2.2 60 percent canmillion expandFilipinos by at leastand 7 percent this
year, within the official growth estimate, from the year,riding withinthe therecovery official growth estirecord contraction in 2020 due tothe of enterprises stopped operation. mate, riding the recovery from therecord pandemic. He saidinhe2020 will push While the unemployment rate of contraction due to forthe more targeted support measures pandemic. said he will push bottom 40 He percent and higher toincome easemore inflhouseholds ation’s burden on the poor for targeted support measures were at 10 perwhile ensuring “tight” government to ease infl ation’s burden on the poor cent in 2020, some 52.7 percent of finances are managed properly. while ensuring “tight” government bottom 40 percent were wage the canare achieve moreproperly. with less,” fi“We nances managed salaried workers compared to heand said, adding that more a review “We can achieve withand less,” 60.4 percent among income streamlining of benefi are he said, adding thathigher aciaries review and needed. The nation cannot households, Edillon said. streamlining of also benefi ciaries af-are ford removal certain Further, 10.4 percent of on the needed. The of nation also taxes cannot afgoods proposed some sectors, ford asremoval of by certain taxes on bottom 40 percent of households heworked said. asin goods proposed someand sectors, family by farms enhe said. without pay; and 34.8 terprises Experienced economist percent of will those in the bottom BALISACAN draw from his ex-40 Experienced economist percent were self-employed withperience in crafting a newfrom economic BALISACAN will draw his exout any paid employees. development plan. Before taking perience in crafting a new economic helm of the antitrust hepercentserved are actually less “There development plan.body, Before taking age who body, are employed helmofofworkers the antitrust he served
as economic planning secretary of theas late president Benigno Aquino of economic planning secretary from 2012 2016. and salaried workers, esas thewage late to president Benigno Aquino To sustain growth at from 2012 toeconomic 2016. pecially if you consider thoseof workleast 6for percent, the next administrasustain economic growth of in at ingTo private establishments, tion must address rednext tape administraand build least 6 percent, the for governments. And working infrastructure needed totape attract intion must address and build that’s also one of red the reasons why vestment in manufacturing and aginfrastructure needed to attract inthey are more vulnerable to ecoriculture, said who holds vestment inBalisacan, manufacturing and aagnomic risks,” Edillon said. PhD in Economics from the Univerriculture, said Balisacan, who holds a sity of Hawaii. PhD in Economics from the UniverGiven a budget deficit inflated Social sity of justice Hawaii. byIn pandemic-era support order these Given toa address budget defiprograms, citinequaliinflated companies and multilateral develby pandemic-era ties, especially insupport light ofprograms, the panopment agencies may be tapped to companies multilateral develdemic, Ulepand cited a need to promote finance roads, rail and heto opment agencies mayirrigation, be tapped justice which assures equal social said. Balisacan helped manage thehe finance roads, and irrigation, access to rightsrail and opportunities, Aquino administration’s flagshipthe said. Balisacan helped manage as well asadministration’s “taking care of the least public-private partnership infraAquino fl agship advantaged members of society.” public-private partnership infra-
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AAbroader look at today’s business look at today’s business A■broader broader look at today’s business Thursday, June 2, 2022 Vol. 17 No. 237
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‘PHL’S H2 RESTS FIRB: WFH REPRIEVE ‘PHL’SPEZA H2 GROWTH GROWTH RESTS ON ECONOMIC FOR IT-BPM HAS NOTEAM’ BASIS ON NEW NEW ECONOMIC TEAM’ www.businessmirror.com.ph www.businessmirror.com.ph www.businessmirror.com.ph
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Friday, September 2022 Vol. 17 No. 329 Thursday, June 2, 2, 2022 Vol. 17 No. 237
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By Bernadette D. Nicolas
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@BNicolasBM
HE Cabinet-level Fiscal Incentives Review Board (FIRB) said Philippine Economic Zone Authority’s (PEZA) decision to extend work-from-home arrangements (WFH) for the information technology and business processing management (IT-BPM) sector until March next year “lacks legal basis.”
IT and Business Process Association of the Philippines (IBPAP) members were earlier told by PEZA that they can extend WFH arrangements until March 2023. However, the FIRB clarified on Thursday that the extension of the WFH arrangement of the sector is "still up for discussion." The FIRB is the government agency that oversees the administration and grant of tax incentives by the Investment Promotion Agencies (IPAs). In a position paper submitted to Finance Secretary and FIRB Chairperson Benjamin E. Diokno, Finance
Assistant Secretary and FIRB Secretariat Head Juvy Danofrata said, “neither the Corporate Recovery and Tax Incentives for Enterprises [CREATE] Act nor the previous FIRB resolution gives any of the investment promotion agencies [IPAs], such as PEZA, the power to unilaterally allow the adoption of WFH arrangements.” She added: “To date, the current and effective resolution issued by the FIRB states that the WFH arrangement for the IT-BPM companies within the ecozones is only until September 12, 2022.” See “FIRB,” A2
PEACE BELL (From left) Atty. Joahna Paula Q. Domingo, Undersecretary, Office of the Special Assistant to the President; Quezon City Mayor Maria Josefina “Joy” Belmonte; Presidential Adviser on Peace, Reconciliation and Unity Carlito G. Galvez; and Abang-Lingkod Party-list Representative Joseph Stephen S. Paduano lead the ringing of the World Peace Bell at the opening ceremony of National Peace Consciousness Month at the Quezon Memorial Circle in Quezon City on Thursday. The bell, donated by the World Peace Bell Association, a Japanese organization raising awareness of the world peace movement by casting and installing Japanese temple bells in locations around the world, was inaugurated at dawn on Human Rights Day, December 10, 1994, by the late President Fidel V. Ramos. NONOY LACZA
JOBS GROWTH FASTEST SINCE Slow uptake in coco fund, 2017 FOR MANUFACTURING rice mechanization scored
THE BRP Melchora Aquino, the second of two multi-role response vessels procured by the Philippine government from Japan, is welcomed by the Philippine Coast Guard at the Port Area in Manila on Wednesday, June 1, 2022, completing its maiden voyage from Japan. Constructed by Mitsubishi Shipbuilding Co. in Japan, the ship, named By Bianca Cuaresma S&P Global said.period, is part of the Maritime Safety after Sora, the Grand thevessels Spanish colonial Capability Improvement Project ofCoast the Coast ROY DOMINGO Jasper Emmanuel Y. Arcalas Mechanization (PhilMech) and THETandang BRP Melchora Aquino, theWoman secondofofthe twoRevolution multi-roleduring response procured by the Philippine government fromBy Japan, is welcomed by the Philippine GuardGuard. at the Port Area in Manila on Wednesday, June 1, and 2022, completing its maiden voyage from Japan. Constructed by Mitsubishi Shipbuilding Co. in Japan, the ship, named @BcuaresmaBM A country’s PMI is meant to @jearcalas Project of the Coast Guard. theROYPhilippine Coconut Authority after Tandang Sora, the Grand Woman of the Revolution during the Spanish colonial period, is part of the Maritime Safety Capability Improvement DOMINGO gauge the health of its manufacB C U. O @caiordinario (PCA) were grilled by the commitHE local manufacturing sector. It is calculated as B C U. O turing @caiordinario ENATOR Cynthia A. Villar on tee for the slow implementation of
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sector recorded an im-
a weighted average of five indiHE of the Philippine provedperformance performance in vidual subcomponents. Readings HE performance of the Philippine year, particularly on August this 50 show growth in the inabove economy in the second half the rate of hiring for new employdustry while readings below the economy the second half ment inof the sector.year in signal a contraction 50 threshold the will rest squarely monthly report on will the rest In its of in thesquarely manufacturing sector. A the year oncountry’s the shoulders of the incoming purchasing managers of 50, meanwhile, showed on the shoulders ofthethereading incoming index (PMI), S&P Global said no change to the sector. administration’s economic team, Philippines hit a PMI of 51.2 in “August PMI data signalled an administration’s economic team, according to a local thinkimprovement tank. in operating conAugust, “marginally” improving from the 50.8 PMIto recorded in July.think according a local tank. ditions across the Philippines
“While this signalled a stronmanufacturing sector. Encourger improvement in the health agingly, employment increased In of its latest Call the report,uptick First Metro the Market sector, was cabinet can handle the emerging scenario,” the See “Jobs,” A2 scenario,” the report stated. Investment and University of Asiaaverage,” and the weaker theCallseries cabinet can handle the emerging In itsCorp. latestthan Market report, First Metro One of the major risks that post the most Pacifi c (FMIC-UA&P) Capital Markets Research report stated. Investment Corp. and University of Asia and the uncertainty is the Russia-Ukraine saidPacifi thecgrowth momentum which gave rise to One to of the the economy major risks that post the most (FMIC-UA&P) Capital Markets Research waruncertainty which willtomark its first 100 days. The war thesaid 8.3-percent growth in the fiwhich rst quarter the economy is the Russia-Ukraine the growth momentum gave will rise to 240.4039 this andUK will65.2763 reachwar spillthe over to the second quarter. n will US 56.began 1710 nFebruary japan n war in which will mark its fiyear rst 100 days. The 8.3-percent growth in the first quarter 100began days on 3. FMIC-UA&P Capital However, of the economy in in June February 24 this year and Markets will reach spill over tothe theperformance second quarter. Research saidoncommodity prices, particularly oil the third and fourth quarters will of bethe determined 100 days June 3. FMIC-UA&P Capital Markets However, the performance economy in prices, could remain elevated until the particularly war in East- oil by the the third policies be implemented the new Research said commodity prices, andtofourth quarters will by be determined ernprices, Europecould is resolved. This uncertainty lead economic will greet remain elevated until the will war in Eastby the team. policiesMuch to beuncertainty implemented by thethenew to an ation of above 5 percent in economic managers as the pandemicwill continues ernaverage Europe infl is resolved. This uncertainty willthelead economic team. Much uncertainty greet the country year. inflation of above 5 percent in the andeconomic commodity prices remain to anthis average managers as theelevated. pandemic continues In April, “Thecommodity robustness in the economic country thisthe year.Philippine Statistics Authority and prices remain elevated.recovery, (PSA) reported ation nationwide increased founded“The heavily on employment gains, should In April,that theinflPhilippine Statistics Authority robustness in the economic recovery, to 4.9 percent in April Thenationwide average inflincreased ation spillfounded over intoheavily Q2 [theonsecond quarter].gains, And while (PSA) reported that 2022. inflation employment should for tothe4.9first four months of theThe yearaverage stood at a tighter fiscal andsecond inflation pose And serious percent in April 2022. infl3.7 ation spill over intospace Q2 [the quarter]. while headwinds anation economic for the first four months of the year stood at 3.7 a tighterinfiH2 scal[second space half], and infl poseteam serious S “H,” A of high-quality the new President’s headwinds intechnocrats H2 [secondinhalf], an economic team S “H,” A of high-quality technocrats in the new President’s
PESO exchange rates
Sotto closes ‘productive’ Sotto closes ‘productive’ PANDEMIC SPANDEMICCHALLENGE CHALLENGE session; Zubiri next SP? MARKS 18TH CONGRESS session; Zubiri next SP? MARKS 18TH CONGRESS
Thursday ordered the Departtheir respective banner programs. ment of Agriculture (DA) to Sen. Cynthia A. Villar, the committee’s chairperson, questioned streamline its bureaucratic procerepeatedly the creation of an advisodures to accelerate the implementary body to provide guidance on Philtion of its rice mechanization proB J N. D C Mech's mechanization programs. gram and M the usage of the coconut and strengthened our political and fund. argued that the creation levyB governmental institutions. J@joveemarie M N. D C andVillar strengthened our political and “Despite many challenges The heads of two attached agenof such a the body was neither man@joveemarie governmental institutions. House of Representatives happened during tenure cies HE of the DA were at the receiving that dated nor stipulated inchallenges Republic “Despite the manymy onHE Wednesday ended the asthat your11203, Speaker, have and Houseire of Representatives happened during my tenure senators’ and disappointor we the rice risen trade liberend of Act Congress, highlighting ourselves to One Conon Wednesday ended the proven as your Speaker, webe have risen and ment18th during a Senate Committee alization law that paved the way itson3-year achievements, including to servetoour people,” 18th Congress, highlighting proven ourselves be One ConAgriculture, Food and Agrarian gress, rice mechanization program for aready laws to help the country navigate histo colleagues. its 3-year achievements, including Velasco gress, ready serve our people,” Reform hearing on Thursday. lodgedtold under PhilMech. through and emerge stronger from “One Congress, ready to scrutilaws to help the country navigate Velasco told his colleagues. The chiefs of the Philippine Centhe Covid-19 pandemic. nize the national budget, pass through and emerge stronger from “One Congress, ter for Postharvest Development Continued ready on A11to scrutiIn Covid-19 his valedictory laws, conduct hearings, the pandemic. speech, nizetothe national budget,totopropass Speaker Velascospeech, said vide oversight on the implementaIn Lord his Allan valedictory laws, to conduct hearings, to pro18th was a504keynand of laws, n andaustralia to generally make n Speaker Lord Allan said tion vide oversight on the implementanthe HK 7.1568Congress n CHINA 8.1Velasco singapore 40.2083 38.4210 steady partner of President easier theand next the 18th Congress was aDuterte key and it tion offor laws, to Congress generally and make insteady passing lawsof that promoted to continue the legpartner President Duterte itsitleadership, easier for the next Congress and economic development, work for the sake of our in passing laws thatstrengthpromoted islative its leadership, to continue thekalegened the administration justice babayans,” he added. economic development,ofstrengthislative work for the sake of our kaand thethe ruleadministration of law, enhanced the He said the ened of justice babayans,” hepandemic added. forced the protection of labor andenhanced social welto be dynamic, and the rule of law, the House Heleadership said the pandemic forced the fare, improved of and and proactive. protection of the laborquality and social wel- innovative House leadership to be dynamic, increased access to “Despite the lingering threat fare, improved theeducation quality ofand and innovative and proactive. information, enhanced our health increased access to education and “Despite the lingering threat C A and emergencyenhanced response our system, information, health C A and emergency response system,
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UTGOING Senate PresiDrilon moved to elect Majority dent Vicente Senate Sotto PresiIII Leader Juanmoved MigueltoZubiri as the UTGOING Drilon elect Majority declared at 7:41 Sotto pm ofIII acting Senate Pro Temdent Vicente Leader Juan President Miguel Zubiri as the Wednesday as adjourned sinepm dieof pore fromSenate noon President of June 30 declared at 7:41 acting Prountil Temthe third regular session of thedie July 25,from when the of 19th Congress Wednesday as adjourned sine pore noon June 30 until 18th on thesession part ofofthe convenes. the Congress third regular the first July 25, when the 19th Congress Senate, capping on what Minority in the day, colleagues 18th Congress the part of the fiEarlier rst convenes. Leader Franklin Drilon thatinZubiri had colleagues secured Senate, capping whatdescribed Minority signaled Earlier the day, asLeader “one of Franklin the most Drilon productive sesthe “votes” that of majority senators described signaled Zubiri of had secured sions” of the chamber, a feat made sit in 19th Senate, a as “one of the most productive ses- who thewill “votes” ofthe majority of senators remarkable by chamber, the fact that much confisit rmed by Drilon. sions” of the a feat made matter who will in the 19th Senate, a ofremarkable it was in a pandemic. Zubiri confi appears to be the by the fact that much matter rmednow by Drilon. peers heaped praise on only Zubiri likely candidate to stand ofHis it was in a pandemic. appears now to befor the EU 56.4687 n KOREA 0.0418 nlaudSAUDI Source: (September 1, 2022) Sotto for his leadership, and election as the nextBSP Senate PresiHis peers heaped praise on arabia only 14.9470 likely candidate to stand for edSotto and thanked as well theand seven after as Sen. Cynthia Villar, earfor his leadership, laud- dent, election the next Senate Presiother “graduating” members of seven the lier touted a strong contender, ed and thanked as well the dent, afterasSen. Cynthia Villar, earchamber, including two other of pilwithdrawing other “graduating” members the announced lier toutedshe as awas strong contender, lars—Drilon and Senate the race. she was withdrawing chamber, including twoPresident other pil- from announced Pro Tempore Ralph “Walathe nang [There is no] SP race,” lars—Drilon and Recto. Senate President from race. As Tempore his “last Ralph officialRecto. act,” Drilon she told reporters, Pro “Wala nang [Thadding, ere is no]“ISPwant race,” introduced resolution meant to a she simple and explained As his a“last official act,” Drilon told life” reporters, adding, “I she want prevent a month-long leadership to “take of my adintroduced a resolution meant to just a wanted simple life” andcare explained she gap in the aSenate, as the terms of vocacy, agriculture,” heradprevent month-long leadership just wanted to “takesignaling care of my Sotto and endasatthenoon ofof desire to keep her chairmanship gap in theRecto Senate, terms vocacy, agriculture,” signaling of her Butch Fernandez June 30. and Recto end at noon of that committee. Sotto desire to keep her chairmanship of June 30. that committee. Butch Fernandez
PESO EXCHANGE RATES ■ US 52.4120 ■ JAPAN 0.4073 ■ UK 66.0496 ■ HK 6.6799 ■ SINGAPORE 38.2625 ■ AUSTRALIA 37.6004 ■ SAUDI ARABIA 13.9750 ■ EU 56.2643 ■ CHINA 7.8555 Source: BSP (June 1, 2022) PESO EXCHANGE RATES ■ US 52.4120 ■ JAPAN 0.4073 ■ UK 66.0496 ■ HK 6.6799 ■ SINGAPORE 38.2625 ■ AUSTRALIA 37.6004 ■ SAUDI ARABIA 13.9750 ■ EU 56.2643 ■ CHINA 7.8555 Source: BSP (June 1, 2022)