ECCP at Work

ECCP@Work Featured Articles | May 14, 2024

May 14, 2024

ECCP Online

ECCP at Work

PHL needs to grow over 6% in next three quarters to hit target

“The Philippines needs to grow almost 6.1% for the remaining three quarters to reach 6% growth for the entire year, which appears to be a tall order, particularly given the slowdown in household spending in quarter one and the subdued global economic backdrop this year,” Makoto Tsuchiya, an economist at Oxford Economics Japan said. Philippine GDP grew by 5.7% in the first quarter, slightly faster than the 5.5% in the fourth quarter of 2023 but below the government’s 6-7% target.

FDI net inflows soar to over two-year high 

Data from the BSP showed that FDI net inflows climbed by 29.3% to $1.364 billion in February from $1.055 billion in the same month a year ago. This was its highest level in 26 months or since the $2.662-billion net inflows recorded in December 2021. Month on month, FDI net inflows increased by 50% from $907 million in January.

NEDA to conduct review of tariff structure

The government is set to present a new tariff structure for agricultural products and electric vehicles (EVs) to the National Economic and Development Authority  (NEDA) Board chaired by President Marcos next month. “We are doing a comprehensive review of the entire tariff structure,” NEDA Secretary Arsenio Balisacan said. Balisacan said the review covers all products including tariffs on agricultural commodities and EVs, for a new tariff structure for 2025 to 2028.

Proposed mining fiscal regime taking shape

The Senate is working toward a mining fiscal regime that would have more tiers and lower rates deemed acceptable to both the government and the local industry. The chamber’s proposal on the rationalization of the country’s mining regime is slowly taking shape with provisional rates and tiers. Like its counterpart in the House of Representatives, the draft Senate bill will introduce a windfall profit tax (WPT) scheme on net income and margin-based royalty on gross income of operations outside mineral reservation areas.

MSME Development Plan over the years

The DTI announced the creation of a new development plan for Filipino micro, small, and medium enterprises (MSMEs), the fourth of its kind since 2004. According to DTI Secretary Alfredo E. Pascual, the new MSME Development Plan 2023-2028 promises to highlight the necessary tools to survive the fourth industrial revolution -- artificial intelligence (AI) and technological innovation -- and lays out ways the government can help MSMEs develop in the digital age.

DoF eyes Green Climate Fund for four projects

The Philippines is looking to tap the Green Climate Fund (GCF) for $124 million worth of projects, the Department of Finance (DoF) said. The DOF said the Philippines receives funding from the GCF for projects and grants worth $139.9 million. “Meanwhile, four priority project proposals are in the pipeline estimated at $124 million,” it added.

NG subsidies to GOCC dip 8.1% to ₱19.59B in 1st qtr

Compared to a year ago, the national government extended lesser subsidies of P19.587 billion to corporations it owns and runs in the first quarter of 2024. Latest data from the Bureau of the Treasury (BTr) showed subsidies extended to government-owned and -controlled corporations (GOCCs) went down from January to March this year by 8.08 percent, or P1.721 billion, from the P21.308 billion recorded in the same period in 2023.

BSP likely to start cutting rates in Q3, analysts project

In its latest Country Risk & Industry Research, BMI, a unit of Fitch Solutions, projects a rate cut by the Monetary Board in July when the United States Federal Reserve is also expected to cut rates. The PSA reported that the country’s GDP growth averaged 5.7 percent, slower than the 6.4 percent in the first quarter but faster than the 5.5 percent posted in the last quarter of 2023.

Govt pushes ‘ease of doing business’ in mining

Secretary Maria Antonia Yulo-Loyzaga of the Department of Environment and Natural Resources (DENR) said the online processing of mining will be ready within the year, hoping to increase the number of operating mines in the next few years. Yulo-Loyzaga said the full digitalization will be road-tested and is hopeful of shortening the waiting time for the approval of the mining permit applications. 

BusinessWorld Economic Forum 2024 to uncover next drivers of Philippines’ growth

The Philippine economy has shown resilience despite facing challenges such as the coronavirus pandemic, elevated inflation and high interest rates. The BusinessWorld Economic Forum will tackle the key issues facing the Philippines today, as well as the next drivers of economic growth when it returns on May 22. Titled “PH Next: Growth Drivers,” the award-winning premier business event from the Philippines’ leading business newspaper and multimedia content provider will bring together policy makers, industry leaders, and top executives.

Philippines mineral output to sustain growth

The value of the country’s mineral output this year is expected to surpass last year’s P249 billion, driven by the rising demand for gold amid persisting geopolitical tensions, according to an industry group. Chamber of Mines of the Philippines chairman Michael Toledo said mining companies are expanding due to higher global demand for key metals, particularly gold and copper. “A lot of people are going to gold because it is a safe haven. (With) the problems happening in Ukraine, in Palestine and of course even in the Red Sea, (people will go to gold),” Toledo told reporters recently.

Clark public transport system could be bid out by end-2024 or early 2025

THE Bases Conversion and Development Authority (BCDA) is hoping to bring the Clark Integrated Public Transport System project to auction by the end of the year, pending the release of a feasibility study by the World Bank. “We already had an agreement with the World Bank, and we just sent the contract to our external lawyer to study. But the agreement is for them to submit the report after six months, or in October,” BCDA President and Chief Executive Officer Joshua M. Bingcang told reporters.

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