Facebook Instagram Linkedin X Youtube
Home Blog Page 10368

AMRO cuts PHL growth forecast anew

THE ASEAN+3 Macroeconomic Research Office (AMRO) has slashed its gross domestic product (GDP) growth forecast for the Philippines this year and 2020, due to “heightened uncertainties in the external environment.”

However, AMRO expects a “recovery” this semester as the government catches up on its spending after the delayed passage of 2019 national budget hampered the first-half economic growth.

Based on AMRO’s preliminary assessment after its annual consultation visit in the country from Sept. 30 to Oct. 9, 2019, the international organization said it sees the Philippine economy expanding by six percent this year, lower than the already-downgraded forecast of 6.3% it gave in June, and from the 6.4% forecast published AMRO’s ASEAN+3 Regional Economic Outlook (AREO) 2019 published in May.

For next year, AMRO also scaled down its growth projection for the Philippines to 6.4% from the 6.5% it gave in July, which was already a tad lower than the 6.6% penciled in May.

“We expect the Philippine economy to expand by 6.0 percent in 2019 and 6.4 percent in 2020 respectively, marking a rebound from slowdown caused by the budget delay and spending freeze before the mid-term election,” AMRO Lead Economist Dr. Siu Fung Yiu was quoted as saying.

“However, heightened uncertainties in the external environment could exert further pressures on the Philippines’ growth and prompt financial market volatilities. Policies should be calibrated to address these challenges.”

If realized, a six percent GDP expansion this year will be at the bottom-end of the 6-7% target of the government but will be lower than the actual 6.2% recorded last year.

However, AMRO said the “ramp-up” in fiscal spending particularly on infrastructure will “support stronger economic growth moving forward.”

“The government’s ‘catch-up plan’ has led to a pickup in fiscal spending recently, however, should the fiscal spending miss the target, some budget items could be carried over into 2020,” it said.

On Thursday, the World Bank also cut its GDP growth forecast for the Philippines to 5.8% (from 6.4%) for 2019, 6.1% for 2020 and 6.2% for 2021 (both from 6.5%), indicating that the country will likely miss its 6-7% official target range for 2019, and 6.5-7.5% target for 2020 and 7-8% target for 2021.

The economy expanded by lower-than-expected 5.5% in the first half, which means GDP has to grow by an average of 6.4% this semester to reach the lower end of 6-7% official target for this year.

“The main short-term risks facing the Philippine economy stem from external sources. The intensifying U.S.-China trade conflicts, major central banks’ policies, and a hard Brexit, have weighed on business sentiments and investment spending. These uncertainties could also exacerbate the current slowing global economy and raise global market volatilities,” AMRO said.

Despite global headwinds, AMRO noted that the current “reconfiguration of global supply chains” exposes the country to opportunities but the government should still push for key reforms to sustain long-term development.

On the domestic front, AMRO noted that the government crackdown on Philippine Offshore Gaming Operators (POGO) and the moratorium on new economic zones within the National Capital Region “may have downward pressure on property market while maintaining labor productivity across the country ‘remains a challenge’.”

For the headline inflation rate, AMRO expects this to settle within the 2-4% official target band set by the government for 2019 and 2020 on the back of “contained” global oil prices and domestic food prices as well as subdued pressure on demand.

AMRO also sees the current account deficit to widen this semester with higher investments and growth. For the full-year, the current account deficit is expected to be lower than last year’s figure.

The easing bias of major central banks overseas will allow sustained capital inflows, it said, adding that the banking sector remained “sound with stable capitalization and liquidity”.

The central bank reported that the country’s current account deficit narrowed 95.6% to $145 million in the second quarter versus the $3.284-billion shortfall logged a year ago.

“The government’s commitment to prudent fiscal discipline will help contain debt accumulation, while fiscal reforms will continue to improve revenue mobilization capacity,” AMRO further said.

The annual consultation visit was led by Mr. Yiu, and AMRO Director Toshinori Doi and AMRO Chief Economist Dr. Hoe Ee Khor.

Initially established as a company in 2011 and transformed into an international organization in 2016, AMRO conducts macroeconomic surveillance and supports implementation of the Chiang Mai Initiative Multilateralization currency swap arrangement which the 10 members of the Association of Southeast Asian Nations, as well as China, Japan and South Korea adopted to help avert any financial crunch. — Beatrice M. Laforga

MWSS: Water firms cannot pass on SC penalties to consumers

WATER concessionaires Manila Water Co. and Maynilad Water Services, Inc. are not allowed to pass on the financial penalties imposed by the Supreme Court to its consumers, the regulator said on Friday.

This after Manila Water on Wednesday warned of a 780% rise in water rates, or P26.7 per cubic meter increase in consumers’ water bills, after the company and Maynilad were fined P921 million by the Supreme Court for not complying with the Clean Water Act.

“We reassure the public that we will not allow the two concessionaires to recover fines from the public. We want to reassure them that we are on top of this,” Metropolitan Waterworks and Sewerage System (MWSS) Chief Regulator Patrick Lester N. Ty said in a phone interview, adding this is not allowed under the concession agreements.

Manila Water on Friday clarified that the company never stated that they will pass on fines to consumers.

“The 780% increase included in the pleading in our Motion for Reconsideration to the Supreme Court is what it would have cost to build wastewater facilities to comply with the Supreme Court Decision subject of our Motion for Reconsideration,” it said.

“We are complying with the Supreme Court Mandamus to complete our wastewater programs by 2037.”

The Ayala-led company on Wednesday however said that a compressed sewerage project to comply with the requirements of the High Court would mean that “the hundreds of billions of pesos required would lead to an increase in the water bill of subscribers, leaving them less money for other necessities and triggering higher inflation.”

Manila Water insisted that it should not be fined as it had complied with sewerage responsibilities under the law.

Former Anakpawis Party-list Representative Ariel Casilao in a statement said they oppose a water hike, calling the passing on of penalties to consumers the “height of immorality of privatization in water utilities.”

“The water utility system in the country will be better off nationalized, as accountability will lie on public officials and threats of immoral water rate hikes will be eradicated. To sincerely uphold public interest, privatization of water utilities must be scrapped,” he said.

Manila Water provides water and wastewater services to the east zone concession areas covering the municipality of Pateros, as well as the cities of Makati, Mandaluyong, Pasig, San Juan, Taguig and Marikina. It is also serves the southeastern parts of Quezon City, as well as Sta. Ana and San Andres in Manila. — Jenina P. Ibañez

DoJ to probe explosion in Bilibid

THE Department of Justice (DoJ) will be looking into security breaches in the New Bilibid Prison (NBP) after an IED exploded in the maximum security compound on Friday morning.

Justice Secretary Menardo I. Guevarra confirmed there was an explosion at the eastern portion of the maximum security compound of the NBP. He added that he will be ordering Bureau of Corrections (BuCor) Director General Gerald Bantag to submit the findings on BuCor’s investigation to him.

Other than the BuCor, the Philippine National Police (PNP) contingent stationed inside the NBP will also be conducting an investigation.

“(I)t’s an indication of how serious the security problem is inside the NBP,” Mr. Guevarra said in a Viber message to the press on Friday.

According to a National Capital Region Police Office (NCRPO) report released on Friday, there was an explosion inside the NBP at around 10 a.m. The NCRPO’s K9 team checked the site and found the remains of an improvised explosive device (IED).

As the search continued for a possible second device, the unit found two grenade hands and two blasting caps inside the shanties adjacent to the explosion site.

The explosion site, according to the report, “was occupied by violent extremist offenders,” including members of the Abu Sayyaf, Maute Isis, Rajah Solaiman Group, Jimaah Islamiya, and the Moro Islamic Liberation Front. — Gillian M. Cortez

Panelo blames Congress for traffic mess

AS COMPLAINTS about the difficulties of commuting in Metro Manila multiply, Presidential Spokesperson Salvador S. Panelo blamed Congress, saying emergency powers should have been given to President Rodrigo R. Duterte three years ago to avoid the transport issues faced today.

In a briefing on Friday, Mr. Panelo said that Congress should have given Mr. Duterte the authority to address the traffic issues in Metro Manila after Mr. Duterte asked for emergency powers to fix the traffic crisis in his first State of the Nation Address (SONA) in 2016. In the wake of worsening traffic conditions, Mr. Duterte recently asked for emergency power again, but noted he would not force lawmakers to do so.

“Kung binigay mo sila three years ago (If you had given that power three years ago), we would have six years to do it. Baka nagawan ng paraan kaagad (Maybe that would have been addressed sooner),” Mr. Panelo said.

Mr. Panelo, who is Mr. Duterte’s Spokesperson and Legal Counsel, added that the current administration is working on easing the traffic crisis through its aggressive infrastructure program, known as “Build Build Build.” He added that Mr. Duterte is taking all actions necessary “even if he was deprived of the requested emergency powers.”

“We’re 20 years behind. So, that’s why (Mr. Duterte’s) ‘Build, Build, Build,’ iyon ang solusyon doon (that will be the solution to that). Kailangan mong i-widen ang roads, kailangan may mga bago kang ruta, kailangan may mga skyways ka, kailangan iyong mga bridges mo na mga single lang ang lane, kailangan i-expand mo. Infrastructure talaga ang solusyon (You need to widen the roads, you need to change the routes, you needs skyways, you need to expand single lane bridges. Infrastructure is really the solution),” he said.

Mr. Panelo, who undertook his much publicized “Commute Challenge” on Friday, said he didn’t need to experience commuting to know the hardships Filipinos are going through on a daily basis. He said that the Metro Manila Development Authority and the Department of Transportation are currently working on measures to improve traffic and mass transportation problems. — Gillian M. Cortez

JBC submits shortlist for SC Associate Justice

THE Judicial and Bar Coucil (JBC) on Friday submitted its list of qualified nominees to replace Supreme Court (SC) Associate Justice Antonio T. Carpio who is retiring later this month.

The list of nine nominees has been submitted to President Rodrigo R. Duterte who has 90 days from Mr. Carpio’s retirement to choose from among them.

Mr. Carpio is set to retire on Oct. 26, his 70th birthday. Seventy is the mandatory retirement age for all magistrates in the High Court.

“Pursuant to Article VIII, Section 9 of the Constitution, the Judicial and Bar Council (JBC) has the honor to submit the following nominees for one position of Associate Justice of the Supreme Court of the Philippines (vice Hon. Antonio T. Carpio),” said JBC Ex-Officio Chairperson and SC Chief Justice Lucas P. Bersamin.

Eight of the candidates are from the Court of Appeals (CA), namely Pablito A. Perez, Manuel M. Barrios, Edgardo L. Delos Santos, Japar B. Dimaampao, Ramon D. Garcia, Jhosep Y. Lopez, Ricardo D. Rosario, and Maria Filomena D. Singh. SC Court Administrator Jose Midas P. Marquez is the 9th nominee.

On the other hand, the JBC has deferred submitting its nominations for the High Court’s Chief Justice position to Oct. 15. Mr. Bersamin will be retiring next week when he turns 70 on Oct. 18. — Gillian M. Cortez

Supreme Court allows Mary Jane Veloso to testify through deposition

THE Supreme Court (SC) on Friday has given convicted drug trafficker Mary Jane Veloso permission to testify against her recruiters by way of deposition in Indonesia. Veloso was arrested and convicted of smuggling drugs to Indonesia and is currently on death row there.

Ms. Veloso claimed that her recruiters, Maria Cristina P. Sergio and Julius L. Lacanilao, tricked her into smuggling heroin into Indonesia, which has strict laws against drugs.

The SC affirmed the decision of the Nueva Ecija Regional Trial Court (RTC) which stated that Ms. Velosa can make the deposition by written interrogation. The SC added, “(T)he Court reinstated and affirmed with modification the ruling of the RTC and ordered that the deposition of Mary Jane be taken before the Philippine Consular Office and officials in Indonesia pursuant to the Rules of Court and principles of jurisdiction.”

The SC reasoned that its decision to allow Ms. Veloso to testify against her recruiters is only just. SC said “The Court said that to disallow the written interrogatories will curtail Mary Jane’s right to due process.”

The SC said that because of Ms. Veloso’s “unusual circumstances,” requiring her to travel to the Philippines to testify in court is not possible. A written deposition is the only mode allowed by the Indonesian government for Ms. Veloso to testify in her case in the Philippines.

Apart from human trafficking, Mr. Lacanilao and Ms. Sergio are facing charges for illegal recruitment and estafa in relation to Ms. Veloso’s case. — Gillian M. Cortez

Road clearing a success says DILG

THE Department of the Interior and Local Government (DILG) on Friday said that the road clearing operation was a success based on the validation reports from 1,246 local government units (LGUs).

Of the 1,246 LGUs, a total of 1,148 passed the validations conducted by the DILG validation teams with 328 LGUs obtaining high compliance ratings, 497 with medium compliance ratings, and 323 with low compliance ratings. A total of 6,899 roads nationwide have been cleared of obstructions.

Interior Secretary Eduardo M. Año said that 97 LGUs nationwide are non-compliant while 388 LGUs are still undergoing validation.

LGUs that obtained a rating of 70% and below in road clearance will be considered as non-compliant while those that obtained 71% to 80% are considered low compliant. LGUs with 81% to 90% clearance are medium compliant, and those with 91% to 100% are high compliant.

“These [non-compliant] LGUs are given five days from the receipt of the Show Cause Orders to explain their non-compliance or under-performance otherwise… their names will be submitted to the President and [we will] file the necessary complaints to the Office of the Ombudsman. We hope their reasons are acceptable,” Mr. Año said.

Out of the 97 LGUs, 11 are from Region I, one each from Region II and III, seven from MIMAROPA, 10 from Region V, one from Region VI, 12 from Region VII, nine from Region VIII, 18 from Region IX, 13 from Region X, three each from Region XI and XII, and four each from XIII and CAR.

Meanwhile, LGUs in the National Capital Region passed the compliance criteria set by the DILG.

The cities of Marikina, San Juan, Mandaluyong, Caloocan, Malabon, Las Piñas, Pasay, Valenzuela, Makati, Pateros, Parañaque, and Navotas have high compliance ratings.

Medium compliance ratings were given to Quezon City, Manila, Pasig, and Muntinlupa, while a low compliance rating was given to Taguig.

Metro Manila mayors earlier said that they were sure to pass the validation with 100% compliance with the directive.

Mr. Año also said that 612 roads, or 75% of the total number of roads in Metro Manila, have been cleared of obstructions.

He also said that the DILG will continue the road clearing operations and conduct validations on a quarterly basis to make sure that the cleared roads and sidewalks remain from obstructions.

The road clearing operations were a 60-day project set by the DILG after the President’s directive to clear all the public roads and sidewalks. — Marc Wyxzel C. dela Paz

Sinas replaces Eleazar as NCR PNP director

POLICE Brigadier General Debold M. Sinas is the new director of the National Capital Region Police Office (NCRPO) replacing Police Major General Guillermo Lorenzo T. Eleazar, the Philippine National Police (PNP) said on Friday.

“Ang bagong naitalaga na chief Directorial Staff ay si Police Major General Guillermo Eleazar at ang papalit sa kaniya sa NCRPO ay si Police Brigadier General Debold Sinas,” PNP spokesperson Bernard M. Banac said.

Mr. Sinas had been the chief of the Central Visayas Regional Police Office since June 2018 and also headed the PNP’s Crime Laboratory prior to his regional director post.

Mr. Eleazar is the new chief of the Directorial Staff, the 4th highest position in the PNP, replacing Lieutenant General Camilo Pancratius P. Cascolan who will be the new PNP deputy chief for operations.

Mr. Cascolan will be replacing Lieutenant General Archie Francisco F. Gamboa who is the next PNP deputy chief for administration.

Meanwhile, Interior and Local Government Secretary Eduardo M. Año said that he will be submitting his recommendation for the next PNP chief to President Rodrigo R. Duterte on Oct. 18. — Marc Wyxzel C. dela Paz

4.9 earthquake hits North Cotabato

A MAGNITUDE 4.9 earthquake rattled North Cotabato at 9:55 a.m. on Friday, a report from the Philippine Institute of Volcanology and Seismology (Phivolcs) said.

The epicenter of the quake, which was tectonic in origin, was 16 kilometers southwest of Makilala, North Cotabato, at a depth of 4 kilometers below the ground.

It was felt at intensity 4 in Makilala, North Cotabato; Kidapawan City; Pikit, South Cotabato and Sta. Cruz, Davao Del Sur; at intensity 3 in Koronadal City, Davao City, and Pres. Roxas, Cotabato. — Marc Wyxzel C. dela Paz

Economic managers to discuss imposition of safeguard duties on rice imports

AGRICULTURE Secretary William D. Dar has terminated the process of studying the imposition of safeguard duties on imported rice.

“The decision by the department is to have this be discussed first with the economic developers of the government, so the first process is terminated,” Mr. Dar told reporters after a press briefing on Friday.

The Department of Agriculture (DA) will be discussing the safeguard duties with economic development managers on Oct. 24, Thursday.

The Philippines had initially informed the World Trade Organization of its investigation into safeguard duties on Sept. 12. A WTO member can impose safeguard actions if it can prove that imports are the cause of injury on the domestic industry.

The prices of palay or unmilled rice have been declining following the implementation of the Rice Tariffication Law that liberalized rice imports.

Meanwhile, the DA asked the National Food Authority to release more than three million bags of rice imports to the market. The NFA is expected to give the DA a report by this weekend.

The DA also plans to implement sanitary and phytosanitary measures to inspect for sanitary issues of imported rice stocks at the port of origin.

The Philippine Statistics Authority reported that the average farmgate price of palay fell by 1.4% to P15.96 per kilogram (/kg) on the third week of September.

The retail price of well-milled rice and regular-milled rice both fell by 0.3% to P42.11/kg and P37.66/kg, respectively. — Jenina P. Ibañez

Urban farming bill filed

A LAWMAKER has refiled a bill which seeks to convert idle lands in the metropolitan area into agricultural spots to grow crops to ensure food security.

1-Pacman Party-list Rep. Michael L. Romero has filed House Bill 2119 or the “Urban Farming Act of 2019” which seeks to implement and institutionalize urban agriculture.

“Inactive, unused and abandoned government lots and buildings owned by either national and local governments, and other available land resources in state colleges and universities shall be considered for growing crops, raising livestock and producing food using the said comprehensive methods,” the bill read.

The bill also mandates that urban farming be included in tertiary education curriculum.

“Urban farming that are used in agriculture production shall be integrated in the academic curriculum for tertiary level students of both public and private academic institutions.”

Mr. Romero said this bill will also help in addressing climate change.

“Urban agriculture and farming will not only clean our environment but it will also help minimize the effect of climate change,” he said.

In the 17th Congress, a similar bill was approved on third and final reading at the House of Representatives but failed to get approval in the Senate. — V.A.C. Ferreras

Bill eyes health warning for products with high sodium content

TWO LAWMAKERS have filed a bill requiring a health warning for food products with high sodium content.

Ako Bicol Partylist Representatives Alfredo A. Garbin, Jr. and Elizaldy S. Co filed House Bill 1511, which mandates the Department of Health to require food producers and manufacturers to indicate whether their products contain high amounts of sodium or more than the recommended daily allowance set by the Bureau of Food and Drugs.

“The warning label shall indicate that the processed food or food product contains a high amount of sodium and shall be printed in a part of the packaging where it is likely to obscure or cover,” the bill read.

“High sodium intake has been a leading cause of deaths due to cardiovascular and kidney diseases… According to the Center for Disease Control and Prevention in the United States, 89 to 90 percent of adults aged 19 and older eat too much sodium from the previous year,” the bill’s explanatory note stated.

According to the World Health Organization, the recommended daily intake of sodium for adults is less than five grams or just under a teaspoon a day.

Violators of the measure could be denied registration of their products; ordered a recall of their products; and a fine of P300,000 up to P1 million, with the cancellation of the registration of their products for the third offense. — V.A.C. Ferreras

1...10,36710,36810,369...14,238Page 10,368 of 14,238
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube