Senate approves CREATE MORE bill on third and final reading

The Senate approved on third and final reading the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill, which seeks to lower taxes on domestic and foreign companies to 20% from 25%. 

Jobless rate rises to 4.7 percent in July

The country’s unemployment rate rose to 4.7 percent in July, the highest in a year as more young Filipinos joined the labor force but were unable to find jobs, according to the Philippine Statistics Authority (PSA).

Philippines is still most disaster-prone country for 16th straight year

The Philippines remained the most disaster-prone country for the 16th straight year, as it continues to face extreme natural events like typhoons, earthquakes and droughts. In the latest World Risk Index, the Philippines’ risk score inched up to 46.91 this year from 46.86 last year.

All set for NAIA turnover on Sep.14

Stakeholders have reaffirmed their commitments to enhance the overall operations of the country’s main gateway. On Sep.14, the transition to new NAIA management marks the modernization of the airport’s facilities and addressing the long-standing issues such as congestion, outdated infrastructure, and service delays.

PHL metals output drops 6.7% by value in first half

Metals production declined 6.7% by value during the first half amid soft nickel prices, according to the Mines and Geosciences Bureau (MGB). In a report, the MGB said the value of production fell to P114.77 billion in the six-month period.

BOC exceeds 8-month revenue goal, but misses August target

The Bureau of Customs (BOC) exceeded its revenue goal in the first eight months of 2024, but fell short of target in August due to rice and motor vehicle tariff reductions. Preliminary reports from the BOC showed its revenue collection reached P614.781 billion from January to August 2024, surpassing its P609.592-billion target by P5.189 billion or 0.9 percent.

PHL on track to meet fiscal consolidation goals despite record-high debt

The National Government (NG) remains on track with its medium-term fiscal consolidation program even as it continues to borrow to help spur economic growth and as its debt remains at a record high due to loans racked up during the coronavirus pandemic.

Philippines’ growth outlook clouded by inflation risks

The Philippines is likely to continue its stable growth trajectory in the medium term, although inflation and elevated interest rates remain major risks to this outlook, analysts said.

Countries signed the first-ever international AI treaty

The Council of Europe announced the first-ever international, legally binding AI treaty, the “Framework Convention on Artificial Intelligence.” It aims to ensure that activities within the life cycle of AI systems are fully consistent with human rights, democracy and the rule of law while being conducive to technological progress and innovation.

PEZA expects P5B economic zone projects

The Philippine Economic Zone Authority (PEZA) said six ecozone projects valued at P5 billion are awaiting presidential proclamation. In a report, PEZA said two of these ecozones will be located in Cavite while the four  will be developed in Pampanga, Tarlac, Ilocos Sur and Cebu.

Marcos pledges to enhance PH trade and industry standards

President Ferdinand Marcos Jr. on Monday vowed to further improve the country’s trade and industry standards through various trade and investment frameworks. Marcos made the pronouncement during the Philippine Strategic Trade Management (STM) Summit 2024 in Taguig City, the first time the country hosted the forum.

Airlines bullish privatized NAIA to spur growth

The country’s  airline operators yesterday expressed optimism the  expansion and rehabilitation plans at the Ninoy Aquino Interna-tional Airport (NAIA), including the airport’s optimization,  to be undertaken by  New NAIA Infrastructure Corp. (NNIC) will redound to the growth of air travel, tourism and the Philippine economy in general. 

BOC shuts down refilling gas station with unmarked fuel

The Customs Intelligence and Investigation Service-Manila International Container Port (CIIS-MICP) shut down a local refilling gas station in Valenzuela City with P3.1 million worth of unmarked fuel. In a statement on Friday, Customs Commissioner Bienvenido Y. Rubio said three out of the four fuel tanks of Roden Refilling Gas Station in Ugong, Valenzuela City failed the fuel marking test.

Meralco seeks to proceed with Atimonan power project

Meralco PowerGen Corp. (MGen) is seeking certification from the Department of Energy (DoE) to confirm that its Atimonan power project is exempt from the 2020 coal moratorium, allowing it to proceed with its proposed 1,200-megawatt (MW) coal-fired power plant.

BARMM to buy DBP stake in Amanah Bank

Finance Secretary Ralph G. Recto expressed support for the Bangsamoro government’s plan to acquire the stake held by the Development Bank of the Philippines (DBP) in the Al-Amanah Islamic Investment Bank of the Philippines (AAIIBP).

Banks’ NPL ratio rises to over two-year high

Philippine banks’ asset quality worsened in July as the industry’s gross nonperforming loan (NPL) ratio rose to its highest in over two years. Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed the banking industry’s gross NPL ratio went up to 3.58% in July from 3.51% in June and 3.43% a year ago. This was the highest bad loan ratio in 25 months or since 3.6% in June 2022.

T-bill yields go down amid policy easing hopes

The Government upsized the volume of Treasury bills (T-bills) it awarded on Monday as yields went down on strong demand and expectations of more rate cuts by the Bangko Sentral ng Pilipinas (BSP) this year amid easing inflation. The Bureau of the Treasury (BTr) raised P22.6 billion from the T-bills it auctioned off on Monday, higher than the planned P20 billion, as total bids reached P64.515 billion or more than thrice the amount on offer. This was also higher than the P53.105 billion in tenders recorded at the Sept. 2 auction.

Banks post 2-year high in bad loans ratio

The local banking industry’s bad loans ratio posted the highest rate recorded in two years, according to the latest data released by the Bangko Sentral ng Pilipinas (BSP). Data showed the gross non-performance loan (NPL) ratio reached 3.58 percent in July 2024. This was the highest NPL ratio since the 3.6 percent posted in June 2022. BSP data showed the Philippine banking system’s total gross NPL amounted to P508.1 billion in July 2024, the second consecutive month that NPLs breached P500 billion and the highest in 16 years.

‘August inflation affirms BSP on 1 more rate cut in 2024’

The latest inflation print supports the view of the Bangko Sentral ng Pilipinas (BSP) on the wisdom of dealing another cut in key policy rates this year, a US-based think tank said. Moody’s Analytics noted that cheaper food, particularly rice, significantly contributed to the downtrend in inflation. The Bangko Sentral ng Pilipinas (BSP) also noted in its Monetary Policy Report (MPR) that the worst may be over in terms of the rise in commodity prices until 2026, based on the view of external forecasters they surveyed.

PHL CEOs ‘kept awake’ by tensions, but remain bullish

Despite geopolitical uncertainty keeping majority of Philippine CEOs awake at night, 86 percent of company leaders remain optimistic about industry prospects and revenue growth in the next 12 months, according to the 2024 Philippine CEO Survey. The survey was conducted by PwC and Management Association of the Philippines (MAP) from July to August 2024 among 168 business leaders in the country, of whom 62 percent said that geopolitical uncertainty keep them “awake at night.”

34.6% of PHL firms cut salary budgets for 2024

Despite the economy rebounding, over one-third of organizations (34.6 percent) in the Philippines reported that their salary budgets for the 2024 cycle were lower than the previous year, according to the latest Salary Budget Planning Report by WTW, a leading global advisory, broking and solutions firm. In a statement on Monday, Sept. 9, WTW said employers are more conservative with their salary budgets as they look to “longer-term stability in their employee base.”

DBM releases P21-B excise tax take from tobacco to LGUs

The Department of Budget and Management (DBM) has released P21 billion in excise tax collections from tobacco and cigarettes to local government unit (LGUs) on August 30. Budget Secretary Amenah F. Pangandaman approved the issuance of a Special Allotment Release Order (Saro) amounting to P21 billion to the Bureau of the Treasury (BTr), which shall release the funding to the beneficiary LGUs. Based on DBM’s Local Budget Memorandum No. 91, 15 percent of the collection from excise taxes on locally manufactured Virginia-type cigarettes, not exceeding P17 billion, will be allocated to the provinces pro-rata according to the volume of production.

Stocks mixed on rate cut prospects

Share prices closed mixed Monday with the index up while market breadth was negative on continued debate about the extent the US Fed  will cut rates when it meets this month. The Philippine Stock Exchange index was up 48.16 points to 6,984.25, a 0.69 percent hike.

Analysts trim inflation expectations

Private sector economists trimmed their inflation expectations for this year and the next two years, with the majority expecting the consumer price index (CPI) to fall within the Bangko Sentral ng Pilipinas’ (BSP) 2-4% target range until 2026.

Green is good: Why more developers eye green certifications for buildings

Philippine property developers are increasingly seeking green certifications for office buildings not only because of government energy mandates but also rising demand from multinational companies. To get a green building certification, a project must meet certain environmental and sustainability standards. These usually ensure that a building meets high standards of energy efficiency, resource conservation, air quality, among others.

End-August GIR rises to $106.9B, highest for year

The income generated from the investments made by Bangko Sentral ng Pilipinas (BSP) abroad boosted the country’s Gross International Reserves (GIR) at the end of August 2024. BSP data showed the country’s GIR increased to $106.9 billion as of the end of August 2024, marking the 11th consecutive month that the country’s dollar reserves were above $100 billion. The GIR at the end of August is also the highest GIR level for the year and is only $2 billion away from the full-year 2021 level of $108.79 billion, the highest in 20 years.

Forecasters in BSP poll: Inflation trending down till ’26

The worst may be over in terms of the rise in commodity prices as external forecasters surveyed by the Bangko Sentral ng Pilipinas (BSP) expect inflation to trend downward until 2026. Based on the Monetary Policy Report (MPR), BSP said external forecasters now expect inflation to ease to 3.5 percent as of August 2024, slower than the 3.7 percent estimated in May 2024. According to the MPR, forecasts also decreased to 3.1 percent from 3.5 percent for 2025, and 3.2 percent from 3.4 percent for 2026.

GOCC subsidies dip 19.6% in Jan-July to ₱77.9B–BTr

Government subsidies extended to state-run firms and financial institutions reached P77.925 billion as of end-July 2024, according to the Bureau of the Treasury (BTr). Latest data from the Treasury showed subsidies dropped by 19.61 percent year-on-year to P77.925 billion in the January-July 2024 period, from P96.934 billion.

Navigating climate risk in the Philippines through insurance

An average of 20 storms and typhoons hit the Philippines each year, leading to flooding, landslides, and storm surges that ravage communities and cause significant economic losses. No other country is more at risk from natural hazards, according to the World Risk Index. Implementing proper financial protection arrangements is crucial to climate change resilience by better managing residual risks and setting incentives for financial preparedness. The Philippines has an enormous catastrophe protection gap — the difference between optimal and actual insurance coverage — at 98%, compared with the world average of 58%.

Manufacturing output expanded in July by 5.3% 

Local factory output expanded at its fastest pace in three months in July, driven by increased production in the computer, transport equipment and food manufacturing sectors, the Philippine Statistics Authority (PSA) reported on Friday. Preliminary results of the PSA’s latest Monthly Integrated Survey of Selected Industries showed factory output, as measured by the Volume of Production Index (VoPI), grew by 5.3% year-on-year in July.

Peso strengthens to P55.905 vs US dollar

The Philippine peso continued to strengthen on September 6, 2024, breaking through the P55 to the dollar level. Data from the Bankers Association of the Philippine' website showed the local currency closed at P55.905 to $1 on Friday.

Six ecozones await proclamation

Six economic zones with a combined cost of over P5 billion are awaiting proclamation by the Office of the President, according to the Philippine Economic Zone Authority. The PEZA said two of these ecozones will be located in Cavite, while Pampanga, Tarlac, Ilocos Sur and Cebu will get one each.

DOTr backs Naia terminal reassignments

The Department of Transportation (DOTr) threw its support behind the plan of the San Miguel Corp. (SMC) group to implement terminal reassignment following its takeover of Ninoy Aquino International Airport (Naia) this month. Transportation Secretary Jaime Bautista, in an interview last week, agreed that the planned terminal reassignment by the New Naia Infrastructure Corp. (NNIC) could improve airport operations.

DOF gets ₱4.69B to fund farm innovation projects

The Department of Finance (DOF) has secured P4.69 billion in funding from the International Fund for Agricultural Development (IFAD) to bankroll value chain innovation projects in agrarian reform communities in Luzon and Mindanao. 

Government slashes subsidies 70 percent to P10.7 billion in July

The government slashed its budgetary support to state-run firms by almost 70 percent to just P10.7 billion in July, with the bulk of the subsidies going to the agriculture sector for various irrigation projects. Data from the Bureau of the Treasury showed subsidies to government-owned and controlled corporations (GOCCs) in July slipped by 67.8 percent to P10.72 billion from P33.24 billion in the same period last year.

LGUs to get P21B from tobacco taxes

Local government units (LGUs) will receive P21 billion from the excise taxes collected from domestically manufactured tobacco and cigarettes, the Department of Budget and Management (DBM) said. P17 billion in excise taxes on Virginia tobacco cigarettes will go to provinces, pro-rated based on the volume of production. Some P4 billion worth of Burley and native tobacco excise taxes will go to the provinces in accordance with the volume of their leaf production.

PHL’s July factory output posts 3-month high–PSA

The country’s factory output posted a three-month high on the back of an increase in the production of electronics, transport equipment, and food products, according to the Philippine Statistics Authority (PSA). Based on the latest report on the Production Index and Net Sales Index or the Monthly Integrated Survey of Selected Industries, the Volume of Production Index (VoPI) was 5.3 percent in July 2024.