Neda: Consumption, investment will trump inflation
‘Close borders, cut Omicron exposure risk’
E C THE WORLD A13 ›› A13 THE WORLD
ENERGY PROBLEMS UKRAINE ENERGY PROBLEMSININ UKKRAINE AND EUROPE EUROPE TAKE STAGE AND TAKECENTER CENTER STAGE
XPENSIVE goods and services are not expected to By Cai U. Ordinario dampen the prospects of the @caiordinario economy this year, according to the National Economic and DevelopLOSING the country’s borders ment Authority (Neda). is one of the most immediate Socioeconomic Planning courses of action the govern-Secretary Arsenio M. Balisacan ment must take to prevent the lat-said the country’s est Covid-19 variant,primary Omicron,economic from drivers are domestic consumpreaching Philippine shores, accordinvestment, which are ing totion localand economists. expected toiant growisina the coming T he new var threat, months. e s p e c i a l l y w it h t he hol id ay s noted that domescomingBalisacan up and more foreigners tic consumption and being a llowed to travel investment to the already account for percent of Philippines, De La Sa lle85 Univerthe demand side of the economy. sit y economist Mar ia Ella Oplas Another major driver, Services, told BusinessMirror. contributed around 67 percent The holidays usually bring in of GDP’s supply Workers side. Overseas Filipino (OFWs) “Both components are growing who are eager to spend Christmas
faster than the overall economy, thatones, their shares GDP withindicating their loved while in forare expected to increase further. eigners living in temperate regions Grosswant fixedtocapital formation usually relax in tropical or investment is also exhibiting a solid countries like the Philippines. This performance,” Balisacan said. year’s influx of OFWs is expected to Balisacan said of the Philippine be heavier since many them were economy only needs to grow by unable to come home for the holidays at least 5.3 percent in the second in December 2020. half of 2022 to meet lower “My recommendation is tothe protect bound of the 6.5 to 7.5 percent the borders. Do not allow people with targetof set by tothe Development a history travel countries with Budget Coordination Committee positive cases to enter,” Oplas said. the year. “Wefor should be more restrictive. [We Based on figures from Philhave to be] more protective in the terms ippine Statistics Authority (PSA), of our measures.” household consumption growth Oplas said that while this will be picked up to 8.6 percent in Q2 a setback to some industries, this is a 2022. fair measure considering that Thishelp led toprevent a 9.3-percent this could placingaverage the growth rate for the first semester country in another strict lockdown,
of 2022. Meanwhile, investment grewshe by an average of 12.6 can percent which, said, the economy no in the first half of the year. longer afford. also improve“It Balisacan is better that wesaid do protective ments in the country’s employment preventive measures than get exrate,again. notingWe that the alabor force saw posed have lot to lose,” about 1.5 million additional FilipiOplas said. “We should do it now so nos June 2022Christrelative that weemployed can openinjust before to June 2021. mas. If it gets contained, we can open Further, the unemployment it again.” rate fell Center to 6 percent in June 2022 Ateneo for Economic Refromand 7.7 percent in the same month search Development (ACERD) last year.Director He attributes to the Associate Ser this Percival economy’s reopening. K. Peña-Reyes said closing the “With the reopening of the country’s borders would be effececonomy, buoyed investment contive but should still adhere to the fidence, the return of domestic and standards set by the World Health foreign tourism, as well as greater Organization (WHO). SME induced by face-toWhatactivities is needed, Peña-Reyes told face classes in thetravel new restricnormal, this newspaper, is for prospects foringrowth in the and near tions to be put place swiftly
term appear bright,” Balisacan said. To sustain economic growth for government to be proactive in against the external headwinds, imposing them. Balisacan governPrevioushighlighted instancesthe when the ment’s priorities outlined the country had the opportunityin to im8-Point Socioeconomic Agenda, pose travel restrictions did not prewhich both short-term vent thefocuses spread ofon Covid-19. That was and medium-term issues. was not mainly because the decision The medium-term priorities of made immediately, he said. the agenda aim to transform the “Kung papatay patay [If we’re Philippine economy by addressing slow] and we get caught flat-footbinding robust ed, [that’sconstraints risky] We to were too job recreation. active instead of proactive before. Through greater utilization We should learn from that,” Peñaof public-private partnerships or Reyes said. “It’s a delicate balancing PPPs, the Marcos administration act. We need to push testing and will promote investment in intracing to be properly informed frastructure, specifically energy, of our decisions. Blanket/shotgun transportation and logistics, water, approaches could have dire conseand telecommunications. quences on the economy.” See “Neda,” A2A2 See “Omicron,”
WITHGOVT WEAKBORROWINGS PESO, GOVT NATL URGED TO HELP BUSINESS FOR 10 MOS DIP TO P2.75T w w
Tuesday, September 2022Vol.Vol.1717No.52 No. 333 Monday, November 29,6,2021
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P25.00 P25.00 nationwide nationwide || 22 sections sections 24 20 pages pages ||
Cai U. Ordinario By By Bernadette D. Nicolas
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PBBM, Jokorisk Omicron tackle spurs Asean’s revival of quarantine wider role, rules in PHL stability
@caiordinario @BNicolasBM
HE HE further national depreciation government’s of the peso gross to another record borrowings as of low should prompt end-October shrank the government to by almost 6 percent extend incentives year-on-year to and subsidies P2.75 trillion. to firms, especially those importing raw Latest data from the Bureau of the materials, Treasury showed according that the government’s gross borrowings during the to local economists. 10-month period fell by 5.99 percent
from P2.92 trillion a year ago. Former University of the left PhilipWith only two months for pines School of Economics (UPSE) this year, the latest figure is already Dean RamontoL. Clarete said theofgovequivalent 89.6 percent its ernment could borrowing consider subsidizing P3.07-trillion program. exporters located in Philippine Broken down, gross domestic Ecobornomic Zone Authority (PEZA) areas rowings from January to October to boostattheir production. settled P2.23 trillion, down by Clarete said theseP2.35 may be pro5.08 percent from trillion vided on top of existing perks bein 2020. ingThe received by firms under PEZA bulk of the amount was and thosefrom under other investment sourced Fixed Rate Treasury promotion agencies (IPAs) such by as Bonds (P1.19 trillion), followed the Board ofborrowings Investments (BOI). short-term from Bangweak peso closes the(P540 curko “The Sentral ng Pilipinas or BSP rent trade or balance of payments billion), Retail Treasury Bonds/Predeficit, accordingly fiscalRetail defimyo Bonds (P463.3 the billion), cit. Imports need to be reduced Onshore Dollar Bonds (P80.84 biland increased tothere do this,” lion).exports In the same period, was Clarete told the BusinessMirror. also a net redemption of Treasury “There is pain with and reBills amounting toinflation P43.94 billion. duction goods available including Net in debt redemption means high fuel or energy.” therecost wereofmore debts repaid comClarete thereborrowed may alsodurbe pared to thesaid amount aing need to provide additional tax the period. credits on top ofgross exemptions Meanwhile, foreignfrom borpaying value-added tax (VAT) also and rowings in the same period excise on imported raw materials. contracted by 9.7 percent to P518.7 However, Clarete hebillion. would billion from last year’ssaid P574.4 advise subsidizing but Thisagainst was raised throughfuel global efforts to subsidize the transporbonds (P146.17 billion), program tation of workersbillion), may beeuro-deconsidloans (P139.98 ered a good move. Efforts must be nominated bonds (P121.97 billion), exerted to bring down the use of a project loan (P86.41 billion), and imported fuel. yen-denominated samurai bonds Ateneo Eagle Watch Senior Fel(P24.19 billion). low Leonardo A. Lanzona See “Borrowings,” A2 Jr. told the BusinessMirror there is also a need to provide incentives to firms in order to consider sourcing raw materials from local producers and manufacturers. “The weak peso should force firms to look for other inputs other than usual imports. There is also a need to adopt other technologies that will utilize more of the domestic resources such as labor,” Lanzona said.
PESO EXCHANGE RATES
M I
By Samuel P. Medenilla
PEOPLE walk past the mural of Gat Andres Bonifacio at Manila City Hall Underpass. The country will celebrate the 158th birth anniversary of Filipino revolutionary hero Gat Andres Bonifacio on Tuesday, November 30. ROY DOMINGO
OVER 3-M FARMERS LISTED FOR P75-B COCO LEVY FUND
By Jasper Emmanuel Y. Arcalas dating its registry following the them. This allows everyone to see programs as President Duterte PRESIDENT Ferdinand R. Marcos Jr. and his wife Louise Araneta Marcosof share moment with Indonesian JokoinWidodo and his wife their meetingtoatsign the Presidential Palace in @jearcalas enactment thea light Coconut FarmwhoPresident are listed the registry andIriana if during is expected the industry Bogor, Indonesia, Monday, September 5, 2022. Marcos affirmed economic security Indonesia on Monday during thethen first overseas trip of his presidency, while concern ers anddeepening Industry Trust and Fund law.ties withfarmer doesn’t see his name he development plan inexpressing early 2022. AP/ACHMAD IBRAHIM, POOL about the persistent difficulties Southeast Asian nations have faced after the pandemic. ORE than 3 million Rosales explained that about shall coordinate with the PCA imRosales said the PCA will not
M JAKARTA WANTS TO BOOST AIR, SEA TRAFFIC WITH MLA
coconut farmers and 500,000 coconut farmers and mediately,” he explained at a recent workers are now regisworkers were added to the PCA’s dialogue with coconut farmers. tered with the government’s reg2018 list that had about 2.5 million “On the other hand, if people istry, which serves as the basis coconut farmers and farm workers. would see names on the list and for the number of people to be The PCA’s next step is to conthey think they are not coconut By Samuel Medenillaof the President Ferdinand “Bongbong” crafts, ships, and railway equipcovered by theP.utilization duct an exclusion-inclusion profarmers or their details are incorR.cedure Marcos in Bogorthe Presidenment fromcan Indonesian state P75-billion@sam_medenilla coconut levy fund. byJr.making updated rect, they report it to the PCA tial Palaceregistry on Monday. owned-enterprises (SOEs). Philippine Coconut Authority farmers’ public, providfor immediate action,” he added. boostAdministrator trade with Roel the Bitung and the Manado are cit-to “Going forward, I hope that (PCA) O Deputy ing everyone opportunity The PCA official noted that country, Indonesia is now ies both located in the island of more opportunities arise for In-list M. Rosales said about 3.11 million check the veracity of the list, Rothe completion of the initial pushing forand the farm reopening Sulawesi, which is located over donesian SOEs and registry the private coconut farmers worksales added. of coconut farmers would of flight routes and “revitaliz1,140 kilometers south of Davao sector to support development ers have been registered with the “The list will be posted in public be just in time for the expected ing” existing since shipping routes upto City. inrollout the Philippines,” Widodo said. government it started spaces where people can easily see of coconut levy-funded Mindanao. Indonesian President Joko Growing trade Maritime security Widodo said the increased C U R R EN T LY, W idodo sa id WIDODO also discussed initian UStransportation 50.4600 n JAPAN 0.4374 nwill UK 67.2329 nbetween HK 6.4722thenPhilippines CHINA 7.9013 ntives SINGAPORE 36.8968 n AUSTRALIA connectivity trade to strengthen Philippinestranslate to more trade potential and Indonesia has already inIndonesia border security coopwith the Philippines. creased by 50 percent compared eration. “I proposed the revitalization to last year. This includes the review of two of shipping route—Ro-Ro [rollMost of the traded goods beborder security agreements with on/roll-off] shipping routes between the two countries are food the Philippines and the signing tween Bitung and Davao and reand beverages, pharmaceuticals, of the Agreement on Cooperative opening of Manado-Davao flight coconut, and seaweed products. Activities in the Field of Defense route,” Widodo said in Bahasa Widodo said he hopes the and Security. during his joint statement with country will also procure airSee “Jakarta,” A2
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stop updating its list of coconut farmers and enjoined them to register in order to reap the benefits of the decades-long idled coconut levy fund. “We will not stop at 3.1 million. We hope that more individuals will register in our coconut farmers registry,” he said. The updating of the coconut farmers registry is mandated by Republic Act (RA) 11524 or the Coconut Industry Trust Fund Act. See “3-M farmers,” A2
AINTAINING @sam_medenilla the stability of the Associaof Southeast Asian NTERtion NATIONA L concerns Nations (Asean) and expanding over the possible spread of the the more role of the regional blocCoin infectious Omicron international geopolitics were vid-19 variant prompted the govamong thetohighlights of the dipernment reimpose mandatory lomatic talks of President for Ferdifacility-based quarantine all nand “Bongbong” R. Marcos Jr. arriving passengers in the country. with Indonesian President Joko Acting Presidential spokesperWidodo on Monday. son Karlo B. Nograles announced a joint that pressthe conference with onIn Sunday Inter-Agency Widodo at the Bogor PresidenTask Force for the Management tial Palace in Jakarta, of Emerging InfectiousIndonesia, Diseases Marcos said he and his (IATF) suspended the Indonesian implemencounterpart a “fruitful discustation of itshad Resolution No. 150sion” on how to address common A (s.2021), effectively imposing concerns in Asean, particularly the stricter protocols for all inbound business disruptions caused by the travelers. pandemic. To note, IATF Resolution 150about the vaccinated difficulties A “We had spoke allowed fully that we as members of non-visa travelers fromAsean Green face List after this iswithwhy areasthe to pandemic enter the and country trade is such important part of out the needanfor facility-based what we spoke and what we have quarantine as long as they secure agreed upon in today’s discussions,” negative Reverse TranscriptionMarcos said, Chain on the Reaction second day of Polymerase (RThis state visit to Indonesia, his first PCR) test within 72 hours prior as to President. their departure. He stressed united Asean will be “Except foracountries classified crucial it could doand its role in keepas ‘Red,’sothe testing quarantine ing regionalfor and peace. protocols allinternational inbound internaSee “PBBM,” A2 tional travelers in all ports of entry shall comply with the testing and quarantine protocols for ‘Yellow’ list countries,” Nograles said, citing the provision of IATF Resolution No. 151-A. He noted Hong Kong, which has confirmed a case of the Omicron variant, will also fall under the Yellow list countries. The suspension of the rules for “Green List” countries will be in effect from November 28, 2021 to December 15, 2021. Continued on A2
36.2807 n EU 56.5758 n SAUDI ARABIA 13.4531
Source: BSP (November 26, 2021)
See “Weak peso,” A2
PESO EXCHANGE RATES n US 56.7910
n JAPAN 0.4052 n UK 65.2415 n HK 7.2357 n CHINA 8.2288 n SINGAPORE 40.5100 n AUSTRALIA 38.4929 n EU 56.3537 n KOREA 0.0417 n SAUDI ARABIA 15.1100 Source: BSP (September 5, 2022)