Philippine Weekly Update

Political

The President has signed into law a measure that would curb perks and ensure ‘fiscal discipline’ in running government-owned and –controlled corporations, the first of his 23 priority bills.

Manuel ‘Mar’ Roxas accepted the Cabinet position of secretary of the Dept. of Transport and Communications (DOTC), taking over from Jose ‘Ping’ de Jesus who resigned effective July 1.

The Commission on Appointments finally confirmed Finance Sec. Cesar Purisima.

Congressional leaders (Senate President Enrile and Speaker Belmonte) are mulling amending the Constitution to make it more responsive to the times, reviving the decade-long debate on charter change. Belmonte referred to tweaking the economic provisions of the Constitution, while Enrile said ‘we must release the rigidity and leave it to Congress what businesses must be reserved to Filipinos and what are open to foreigners so that we widen the area of foreign participation in the investment climate in the country’.


Economic

The inflation rose slightly to 4.5% in May; the average inflation for the 5-month period stands at 4.2%, well within the BSP’s 3-5% target.

The country’s gross international reserves hit a record US$ 68.8 billion in May, up from US$ 68.5 billion in April this year and US$ 47.69 billion in May last year.

The Central Bank has opened previously restricted areas (Makati, Mandaluyong, Manila, Paranaque, Pasay, Pasig, San Juan and Quezon City) to bank branches, setting the stage for more competition among the country’s lenders.

The BSP is supporting the proposed amendments to RA 7353  (Rural Bank Act) to allow the infusion of foreign capital into the rural banking industry as it would boost the competitiveness and financial muscle of rural banks.

The DOE is preparing to award around 70 new renewable energy contracts (mostly for hydro0 within the month, while it is completing its evaluation of 53 contracts that may be revoked by month’s end.

The BIR is seeking to prohibit the trade of tax credit certificates (TCCs) to ensure that only qualified firms get to enjoy the tax breaks.

The Tariff Commission has discarded the plea of the local ethanol producers for tariff protection.

Bank lending continued to be robust in April, growing 14.2% year on year and indicating steady domestic economic expansion.

Net Foreign Investments reached US$ 167 million in March, bringing FDI in the first quarter to US$ 471 million, a decline of 16.6% compared to the same period of last year.

Merchandise exports rose by 19.1% to US$ 4.3 billion in April. Exports in the first 4 months of the year reached US$ 16.519 billion, up 10.6% from the same period last year.

The non-performing loans’ ratio of the universal and commercial banks eased to 2.95% as of end-March.


Business

Car sales declined by 11% in May from a year ago level because of dwindling stocks as the industry continues to reel from the impact of the twin disasters in Japan.

The Supreme Court has given the Lopez-owned First Philippine Industrial Corp. the go ahead to resume operations of its Black Oil Pipeline System, which extends 105 km and transports bunker fuel from Batangas to a depot in Sucat.

Robert Bosch Communications Center Inc. is further expanding its BPO operations in the Philippines to allow the company to service more external clients.

The Senate will let the NTC resolve the ongoing feud between the two telecom giants Globe and PLDT over the latter’s P69 billion deal for the acquisition of Digitel’s Sun Cellular.


CongressWatch

The House has approved on third and final reading HB 3841, a measure amending the Intellectual Property Code to expand its coverage and respond to the growing onslaught of piracy on the Internet.

The House committee on ways and means approved the proposed Investments and Incentives Code of the Philippines, one of the 23 priority bills of the Aquino administration.

The 15th Congress managed to approve another priority measure – a bill lifting the ban on night work for women – at it wrapped up its regular session.