THE tourism industry accounted for 8.6% of gross domestic product (GDP) in 2023, up from 6.4% a year earlier, due to the post-pandemic reopening, the Philippine Statistics Agency (PSA) reported on Tuesday. Read the full story.
REAL ESTATE developer Italpinas Development Corp. said its subsidiary IDC Prime, Inc. has entered into a joint venture agreement for the development of a mixed-use property in Palawan.
In a stock exchange disclosure, the company said IDC Prime agreed to enter into an unincorporated agreement with Edwin C. Fabro and Calvin Ryan O. Coherco, the owners of the land being developed by the company.
The company said IDC Prime intends to develop the area into a mixed-use condominium complex, while Italpinas Development will provide management and technical oversight. The project cost is valued at P2.81 billion.
“For the purpose of developing their property, consisting of 20,000 square meters, located at Mitra Road, Brgy. Sta. Monica, Puerto Princesa City, Palawan. The parties likewise entered into a Sales & Marketing Agreement for the Landowner’s share under the JVA,” Italpinas Development said in its regulatory filing.
The company said the agreement has already been approved by its board.
Further, the company said both the landowners will be entitled to 20% of the number of saleable units, while IDC will be entitled to the remaining 80%.
On Tuesday, shares in the company closed five centavos or 5.1% higher at P1.03 apiece. — Ashley Erika O. Jose
Here’s a quick glance at how PSEi stocks fared on Tuesday, June 18, 2024.
THE Anti-Red Tape Authority (ARTA) said delays in digitizing the permit processes of National Government (NG) agencies and local government units (LGUs) are hindering the streamlining of applications for infrastructure flagship projects (IFPs).
On the sidelines of the signing of the implementing rules and regulations of Executive Order (EO) No. 59 on Tuesday, ARTA Secretary Ernesto V. Perez told BusinessWorld: “Right now, not all LGUs and National Government agencies are fully computerized or fully online,” Mr. Perez said.
“This is why the Department of Information and Communications Technology (DICT) is very keen on capacitating LGUs to comply with this requirement,” he added.
EO 59 tasked ARTA with accelerating the progress of IFPs by simplifying the system for obtaining permits before the projects can proceed.
Mr. Perez also said EO 59 can also help ARTA speed up the takeup of its own electronic business one-stop shop (eBOSS) system, by obliging NG agencies to also adopt eBOSS in some form.
“To me this is a test case. If we can be successful in the big-ticket infrastructure projects, we can also apply this even to small businesses,” he said.
Asked about the response of the private sector, he said that the Private Sector Advisory Council, Management Association of the Philippines and Philippine Chamber of Commerce and Industry have been very supportive.
“Even foreign chambers like the British Chamber of Commerce of the Philippines were upbeat,” Mr. Perez said.
“Most of our investors are foreigners and they are very optimistic about EO 59,” he added.
Signed on April 30, EO 59 aims to eliminate delays in the issuance of licenses, clearances, permits, certifications, or authorizations to ensure timely completion of the IFPs.
According to the National Economic and Development Authority, the government has a pipeline of 185 IFPs valued at P9.54 trillion. — Justine Irish D. Tabile
THE National Privacy Commission (NPC) confirmed on Tuesday that it had received a data breach notification from Maxicare Healthcare Corp.
In a statement, the regulator said that the NPC Data Breach Notification Management System received a notification from the health maintenance organization on June 16.
The breach was first made public on Tuesday in a Facebook post by a cybersecurity advocacy known as Deep Web Konek. Deep Web Konek estimated the breach as having compromised 33 megabytes of Maxicare data.
Member details included 16-digit Maxicare card numbers, account types, dates of birth, sex, mobile numbers, and e-mail addresses, it said.
Separately, the NPC said that it has not received any data breach notification from the Maritime Industry Authority (Marina) as of Tuesday afternoon.
“As of 2 p.m. today, there has been no notification from Marina. But they have 72 hours upon knowledge of the breach to notify the NPC and their data subjects,” the NPC said.
On June 17, Marina reported attacks on four of its web-based systems and said that it was working with the Department of Information and Communications Technology to address the breach.
Marina said it does not expect the breach to have compromised the data of seafarers, adding that it hopes to restore normal operations as soon as possible.
Two weeks ago, the NPC also reported data breaches at Robinsons Land, Toyota Motors, and the Philippine National Police. It has yet to be officially notified of any data breach involving membership shopping club S&R. — Justine Irish D. Tabile
THE Chinese threat to detain fishing boat crews “intruding” on the territory it claims in the West Philippine Sea (WPS) is not expected to have a significant impact on fish production, according to the Bureau of Fisheries and Aquatic Resources (BFAR).
“In terms of production, yes, the contribution of the West Philippine Sea is significant… But we don’t see the unilateral declaration of China actually having an impact,” BFAR spokesman Nazario C. Briguera said in a briefing on Tuesday.
The Chinese government has authorized its coast guard to detain for 60 days without trial any boat crew members found in the disputed waters.
“First and foremost, the Philippines does not recognize this unilateral declaration of China,” he said.
“The Philippines will continue to fish in the West Philippine Sea because it is part of our waters, as our exclusive economic zone (EEZ),” he added.
The Philippines continued to protest the illegal presence and actions of Chinese vessels within the EEZ.
Mr. Briguera said BFAR has yet to receive reports of China detaining any boat crews from the Philippines.
“We have not heard of any fishermen being arrested and if there is, it is a new provocation on the part of China and it can be considered a new violation of international law, particularly of the United Nations Convention on the Law of the Sea.
China’s coast guard has repeatedly used water cannons to turn Philippine vessels from entering contested areas within the EEZ, including Scarborough Shoal and Second Thomas Shoal.
Fish caught in the WPS amounted to 201,894.49 metric tons last year, according to the Philippine Statistics Authority. This was up 14.85% from 2022. — Adrian H. Halili
THE Department of Agriculture (DA) said it is aiming for a year-end national rice inventory level of 3.64 million metric tons (MMT), after a reading of just over 2 MMT in early May.
“At the end of the year we are looking at 3.64 MMT, equivalent to nearly 95 days’ demand,” Agriculture Assistant Secretary for Operations U-Nichols A. Manalo said in a briefing.
The national rice inventory rose 10.3% year on year in early May, while corn stocks were up 6.3%, the Philippine Statistics Authority (PSA) said.
In a report, the PSA said the rice inventory was estimated at 2.08 MMT, noting declines in volume held by the National Food Authority and households.
Mr. Manalo added that palay or unmilled rice production was estimated at 8.8 MMT during the first half of the year.
The DA said overall palay production could hit 20.44 MMT this year. This was a downgrade from the initial 20.8 MMT projection to account for the possible effects of El Niño and La Niña.
In a separate report, the PSA said that palay production may have dropped 8.4% year on year to 3.89 MMT during the second quarter.
The government weather service, known as PAGASA (Philippine Atmospheric, Geophysical and Astronomical Services Administration), has declared El Niño to have ended, and estimated the chances of La Niña setting in between July and September at 69%.
“Historically, the damage is greater during La Niña …during rains and typhoons (the damage can hit) 500 to 600 thousand MT,” Agriculture Assistant Secretary and Spokesperson Arnel V. de Mesa said on the sidelines of the briefing.
La Niña event increases the likelihood of above-normal rainfall in parts of the country, especially towards the end of the year.
He added that water management may be difficult during the La Niña months.
“It is more difficult to control, especially if there is too much water (beyond the capacity of flood-control systems),” Mr. De Mesa said.
La Niña may also lead to increased rice imports.
“It is possible that there will be an increase (in imports) especially with a severe La Niña,” he added.
Rice imports amounted to 2.17 MMT as of June 6, according to the Bureau of Plant Industry.
The US Department of Agriculture has upwardly revised its rice import forecast for the Philippines to 4.6 MMT this year, owing to higher consumption and lowered import tariffs.
The National Economic and Development Authority Board has approved a plan to lower tariffs on industrial and farm goods, including the further reduction of rice import tariffs to 15% from 35%, until 2028. — Adrian H. Halili
GROWTH in the retail prices of construction materials in the National Capital Region (NCR) eased in May, the Philippine Statistics Authority (PSA) reported.
Citing preliminary data, the PSA said the May construction materials retail price index (CMRPI) rose 1%, easing from 1.2% in April and 2.6% in May 2023.
In the first five months, growth in the NCR CMRPI averaged 1%.
The PSA attributed the easing in CMRPI growth to the slowdown in price growth of tinsmithry materials, whose sub-index rose 2.2% in May from 2.6% in April. Tinsmithry materials account for 17.22% of the CMRPI.
Prices of painting materials and related compounds rose 1.6%, easing from 2.2% in April.
Of the seven commodity groups, only the index of carpentry materials posted stronger growth of 0.4% in May, compared with 0.3% in April.
Prices growth of all other categories were steady in May, including electrical materials (0.9%), miscellaneous construction materials (0.8%); plumbing materials (0.3%); and masonry materials (-3%). — Andrea C. Abestano
THE Philippine Ports Authority (PPA) said it may award the master plan contract for developing 10 ports next month.
“Expected award of the contract is before the end of July 2024, after completion of the detailed evaluation of the technical proposal and opening of the financial proposal,” the PPA said in a statement on Tuesday.
According to the PPA, only two of the initial five consultancy firms submitted bids for the feasibility study and development of the master plan for the 10 ports.
The PPA said after the screening conducted on June 5, consultants Science and Vision for Technology, Inc. and Syconsult, Inc. submitted a bid as a joint venture, which was declared eligible to bid for the project.
The eligible bidder will have until July 4 to submit a technical proposal for the P32.2-million contract.
The study aims to find ways to improve cargo movement and meet the increasing port services required for agro-industrial development.
The PPA identified the ports as Davila, Pasuquin, Ilocos Norte; Puerto Galera, Oriental Mindoro; Taytay, Palawan; Buenavista, Guimaras; San Carlos, Negros Occidental; Dumaguete, Negros Oriental; Lazi, Siquijor; Catbalogan, Samar; Zamboanga; and Cagdianao, Dinagat Islands.
The study is due one year after the winning bidder receives the notice to proceed. — Ashley Erika O. Jose
THE tourism industry accounted for 8.6% of gross domestic product (GDP) in 2023, up from 6.4% a year earlier, due to the post-pandemic reopening, the Philippine Statistics Agency (PSA) reported on Tuesday.
Citing preliminary data, the PSA said the industry’s direct gross value added, which measures the value generated from various tourism-related activities, was P2.09 trillion in 2023, against the revised P1.41 trillion a year earlier.
Tourism-related spending by nonresidents grew 87.7% last year to P697.46 billion.
Spending by domestic tourists, including expenditures of nonresidents traveling domestically or as part of an international trip, expanded to P2.67 trillion in 2023, up 72.3%.
Spending on accommodation grew 143.2% to P347.97 billion, followed by food and beverage spending, which rose 131.4% to P568.35 billion.
Workers employed by the industry totaled 6.21 million last year, up 6.4%, and accounted for 12.9% of the overall workforce, the PSA said.
Leonardo A. Lanzona, who teaches economics at the Ateneo De Manila, cited the phenomenon of “revenge consumption” after the pandemic.
“What is more revealing is how the Philippines compares to its ASEAN neighbors. The Philippines in fact pales in comparison to these other countries whose international arrivals have always exceeded ours… with many citing poor infrastructure and lack of smart ecosystems as the reasons for us to lag behind,” he said via chat.
In 2023, Philippines attracted 5.45 million international visitors, well below the numbers posted by Thailand (23 million), Vietnam (12.6 million), and Indonesia (11.68 million).
Issues like overdevelopment in coastal areas, pollution, the degradation of natural attractions, and security concerns hamper the expansion of the tourism industry, Mr. Lanzona said.
“The general perception that we continue to be a poor country can make the Philippines less attractive compared to our more well-off neighbors,” he added.
To expand the industry’s contribution to the economy, Foundation for Economic Freedom President Calixto V. Chikiamco called for more investment in tourism-related infrastructure, improving law and order, and the relaxation of visa policies.
“The Philippines does have immense natural and cultural appeal, so with improved infrastructure, security, environmental protection and marketing, the tourism sector has great untapped potential to grow significantly,” Mr. Lanzona said. “Hence, the problem stems really from mismanagement.”
The government is aiming for 7.7 million foreign visitors this year. — Beatriz Marie D. Cruz
PHILIPPINE SHARES ended lower on Tuesday amid expectations that the Bangko Sentral ng Pilipinas (BSP) would implement fewer rate cuts this year.
The benchmark Philippine Stock Exchange index (PSEi) inched down by 0.23% or 14.9 points to end at 6,368.80 on Tuesday, while the broader all shares index fell by 0.2% or 7.21 points to close at 3,440.54.
Philippine financial markets were closed on Monday (June 17) in observance of Eid’l Adha or the Feast of Sacrifice.
“The local bourse opened this shortened trading week in the red amid talks that the BSP will implement fewer rate cuts this year, taking cues from the US Federal Reserve moves,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
The BSP will probably cut its policy rate after the Fed, which has signaled it may start easing as late as December, Finance Secretary Ralph G. Recto said last week.
Asked if the BSP would begin its easing cycle once the US central bank cuts rates, Mr. Recto, a member of the Monetary Board, said this was “highly probable.”
BSP Governor Eli M. Remolona, Jr. earlier said the BSP could begin cutting rates as early as August, for a total of 25-50 basis points in easing for the entire year.
Mr. Remolona has also said the BSP does not need to wait for the US central bank to begin reducing rates because its own monetary decisions are “independent” of the Fed.
The Monetary Board has kept its benchmark rate steady at a 17-year high of 6.5% since October 2023. Its next meeting is on June 27.
Meanwhile, the US central bank last week maintained its benchmark overnight interest rate in the current 5.25%-5.5% range, where it has been since last July.
Analysts said this week that the BSP is now expected to deliver fewer rate cuts later this year with the Fed likely to delay its own policy easing.
“The market was down on continued foreign selling,” First Metro Investment Corp. Head of Research Cristina S. Ulang added in a Viber message.
Net foreign selling rose to P262.54 million on Tuesday from the P138.21 million recorded on Friday.
The majority of sectoral indices ended higher on Monday. Industrials rose by 0.83% or 75.08 points to 9,047.08; mining and oil climbed by 0.48% or 42.39 points to 8,728.18; holding firms increased by 0.47% or 26.62 points to 5,581.15; and property went up by 0.03% or 0.88 points to 2,457.28.
Meanwhile, financials declined by 1.97% or 38.9 points to 1,932.80, and services dropped by 0.42% or 8.26 points to 1,940.71.
Value turnover dropped to P2.97 billion on Tuesday with 706.84 million shares changing hands from the P3.11 billion with 298.24 million issues traded on Friday.
Decliners outnumbered advancers, 96 against 86, while 51 names closed unchanged. — RMDO
THE National Food Authority (NFA) said on Tuesday that it could realize major savings by no longer re-bagging procured palay (unmilled rice).
“More or less half a billion pesos could be saved by the NFA just tweaking that particular process,” Acting Administrator Larry R. Lacson said at a briefing.
He said that an NFA sack typically costs about P13 while handling costs are at P30 per bag.
The savings from no longer using sacks is roughly P130 million, while the savings in handling costs is P300 million, he added.
Mr. Lacson added that the move is still being studied, “but we’re really going in that direction.”
The NFA typically rebags the palay bought from farmers with NFA-branded sacks to store in its warehouses.
“If the specifications indicated by the farmers on their sacks are correct, there should be no problem,” he added.
According to the NFA, palay delivered by farmers is rebagged to verify that the grain within the sacks is suitable for storage.
“In reality the NFA’s product is not palay but milled rice,” Mr. Lacson added.
The NFA hopes to purchase 60% of the NFA’s requirements during the second half of the year. Its target inventory is 495 thousand MT by the end of the year, equivalent to 6.6 million bags.
Last week, Mr. Lacson said the buffer stock of rice held by the NFA was 3.37 million 50-kilogram bags as of June 13, equivalent to four days’ consumption. — Adrian H. Halili
