More buses for BARMM urged

December 28, 2023 | 8:46 pm

COTABATO CITY — Local officials called on bus companies in Mindanao on Thursday to enhance economic activities by increasing the number of units operating along highways connecting three Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) provinces to trading sites in Region 12.

Bangsamoro Transportation and Communications Minister Paisalin P. Tago announced plans to persuade bus company owners to add more units, starting January 2024, particularly for Maguindanao del Sur, Maguindanao del Norte, Lanao del Sur, and parts of Region 12. The initiative aims to expedite the mobility of residents and merchants engaged in local entrepreneurial and trading activities.

The Bangsamoro region has seen improvements in commerce and trade in recent months, particularly in Moro-dominated barangays in Region 12. Mr. Tago emphasized the need to complement these improvements with increased bus services.

Cotabato Governor Emmylou Taliño Mendoza, chairperson of the Regional Development Council-12, expressed support for the initiative, considering it essential for the economic growth of small-scale traders in the 63 Bangsamoro barangays. She believes that increased bus services will signal safety and encourage investment in Moro-dominated barangays.

Security forces, including the Army’s 6^th Infantry Division and regional police, expressed readiness to collaborate in ensuring security along the highways connecting Bangsamoro provinces and Region 12 if bus companies expand their services. Local government units are already supporting current security efforts in these areas. — John Felix M. Unson

Davao launches tourism card

December 28, 2023 | 8:46 pm

DAVAO CITY — The Davao City Tourism Association (DATA) has launched the Madayaw DATA Privilege Card, which is designed to support and promote its member establishments in a bid to boost the tourism industry and foster member engagement.

Priced at P350, cardholders gain a 10% discount at all 30 member establishments, spanning hotels, spas, travel and tours, events, food and beverage, restaurants, and resorts.

Nicole Bian-Ledesma, DATA President, explained the card’s purpose, likening it to a “DATA member crawl.” Participating members stand to benefit from increased patronage, and cardholders completing stamps from all establishments become eligible for a raffle draw.

Participating establishments include Annipie, Bec and Geris, Marina Tuna, Habi at Kape, Rekado, Café Sola, Luxebridge Sans, My Hotel, Rogen Inn, Bioskin, Elysia Wellness Spa, Thai Boran Massage, Kathryn Fanlo, and Villa Amparo. — Maya M. Padillo

PCC elevating carabao industry

December 28, 2023 | 8:46 pm

THE PHILIPPINE Carabao Center (PCC) said it has inked a deal with the provincial government of Batangas to bolster the local carabao (water buffalo) industry by providing better business opportunities to the animal raisers.

This is contained in a memorandum of agreement (MoA) signed by the PCC with the Batangas provincial government, and the Rosario Livestock Agriculture and Farming Cooperative (TRLAFCO).

The partnership is aimed at implementing multi-party development convergence projects such as sharing available resources and support and creating collaborative opportunities in the implementation of the province-wide Carabao-based Business Improvement Network (CBIN).

The CBIN is a program of the Senate Committee on Agriculture, Food, and Agrarian Reform, headed by Senator Cynthia A. Villar.

The projects would also be aiding all carabao raisers by linking and facilitating their inclusion in the carabao-based enterprises (CBE) value chain to boost the local dairy industry. — Adrian H. Halili

Consumption to pick up as inflation eases — Diokno

December 28, 2023 | 8:23 pm

CONSUMPTION will once again be the primary driver of economic expansion in 2024 as the threat from inflation recedes, Finance Secretary Benjamin E. Diokno said.

The Development Budget Coordination Committee (DBCC) expects gross domestic product (GDP) to grow by 6.5%-7.5% next year, “taking into account the risks posed by the possible global economic slowdown, El Niño, and other natural disasters, as well as geopolitical and trade tensions,” Mr. Diokno said in a statement Thursday.

The DBCC expects the economy to grow by 6-7% this year, and by 6.5-8% for 2025-2028.

GDP grew 5.9% in the third quarter, bringing the nine-month average to 5.5%.

“Growth in 2024 will be driven by private consumption as inflation is expected to return within the target range,” the Department of Finance (DoF) said.

The BSP last week maintained its 2-4% inflation target range through 2026, but said risks were weighted to the upside.

Its forecasts indicate inflation will likely decelerate next year and in 2025, “given limited demand-based inflation pressures amid improving supply conditions.”

Headline inflation slowed to 4.1% in November from 4.9% in October, marking the 20th straight month of price growth breaching the BSP’s 2-4% target. Year to date, inflation averaged 6.2%.

Growth in 2024 will also be led by investment due to the Philippines’ “sound macroeconomic fundamentals, investment-grade credit ratings, the implementation of structural reforms; and increased demand for Philippine exports as supply chain bottlenecks ease.”

On the supply side, growth will be driven by the services and industry sectors, the DoF said.

The government’s 2028 medium-term fiscal framework, which includes a deficit target of 5.1% of GDP, could also be achieved with the passage of proposed legislation to fund the P5.77-trillion budget for 2024.

“The economic team will continue to work with Congress in pushing for key reforms crucial to accelerating economic development,” Mr. Diokno said.

This year, the government’s deficit ceiling is set at P1.49 trillion, equivalent to 6.1% of GDP. The projection assumes P3.847 trillion in revenue and P5.34 trillion in disbursements.

The Bureau of the Treasury reported that the National Government budget deficit narrowed by 24.8% to P93.3 billion last month from the P123.9-billion deficit in November 2022.

In the year to date, the fiscal deficit contracted by 10.1% year on year to P1.11 trillion. This was equivalent to 74.1% of the full-year P1.499-trillion targeted deficit. — Aaron Michael C. Sy

Low food tariffs will help, but agri output ultimately needs to rise — Balisacan

December 28, 2023 | 8:23 pm

Balisacan-Philstar — National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan — PHILIPPINE STAR/KRIZ JOHN ROSALES

THE extension of reduced tariffs on key food products will help mitigate inflation, but the Philippines will ultimately need to improve agricultural output, according to the National Economic and Development Authority (NEDA).

In a statement Thursday, NEDA Secretary Arsenio M. Balisacan said the Philippines should also diversify its sources of imports to ensure the sufficiency and affordability of food.

Such measures would help mitigate the inflationary impact of El Niño, the persistence of African Swine Fever (ASF), and geopolitical disruptions and as supplier countries move to restrict their food exports.

“Short-term and long-term interventions need to work together to protect the purchasing power of households and boost producer productivity and income. Doing so will ensure equitable and sustainable development,” Mr. Balisacan said.

NEDA also said these strategies include sustained investment in irrigation, flood control, logistics, and climate change adaptation.

Headline inflation slowed to 4.1% in November from 4.9% in October, marking the 20^th straight month that inflation breached the central bank’s 2-4% target range.

In the first 11 months of the year, inflation averaged 6.2%, still above the central bank’s 6% full-year forecast.

Meanwhile, the extension of the reduced Most Favored Nation (MFN) tariff rates for key agricultural commodities such as pork, corn, and rice will likely help keep food prices and overall inflation manageable, NEDA said.

“Swine fever, production shortfalls in corn, and estimated supply deficits in rice drove price increases in these commodities for this year, (but) additional meat imports played a crucial role in reducing meat inflation to -1.2% in September 2023 from 21% in 2021,” it said.

“In addition, the reduction on tariff rates had pulled down corn inflation and broadened market sources for rice, mitigating the impact of elevated inflation in September ,” NEDA added.

President Ferdinand R. Marcos, Jr. last week signed Executive Order (EO) No. 50, which extends the reduced MFN tariff rates on rice, corn, and pork until Dec. 31, 2024.

The rates for rice imports will be kept at 35% for shipments both within or over the minimum access volume (MAV) quota.

Tariff rates for fresh, chilled or frozen pork were retained at 15% for shipments within the quota and 25% for those exceeding the quotas.

Imports for corn are still to be charged 5% for shipments within MAV and 15% for those exceeding it.

The tariff rates on rice, pork, and corn are subject to review every six months, according to the EO. — Keisha B. Ta-asan

Livestock, poultry production seen falling next year

December 28, 2023 | 8:23 pm

By Adrian H. Halili, Reporter

LIVESTOCK and poultry production are expected to decline next year with imports admitted under lower tariffs discouraging producers from expanding, according to the Philippine Chamber of Food, Inc. (PCAFI).

“We have a negative growth outlook for the livestock and poultry sector next year affecting both backward linkages like corn production and forward linkages in the value chain,” PCAFI President Danilo V. Fausto said in a Viber message.

The Department of Agriculture has said that it plans to raise livestock production levels by five times in 2028.

According to the Philippine Statistics Authority, hog and goat production rose 3.3% and 0.1%, while dairy output fell 12.4%, as did that of cattle (-1.5%), and carabao (-0.3%), during the third quarter.

Mr. Fausto said that the recent extension of a lower tariff regime on imported meat will set back the livestock and poultry industry.

“Basically, imports will hurt livestock production especially now that lower import tariffs have been extended for another year,” Mr. Fausto said.

Executive Order 50 extended the lowered Most Favored Nation tariff rates on rice, corn, and pork until Dec. 31, 2024.

The rates on pork meat, whether fresh, chilled, or frozen were kept at 15% for imports within the minimum access volume (MAV) quota and 25% for those exceeding the quota.

Tariff rates for rice imports remained at 35% regardless of their source country or volume.

Corn shipments, on the other hand, were kept at 5% for shipments within the MAV quota and 15% for those exceeding the quota.

“Our livestock producers will find it difficult to compete with imported meat and poultry products which are highly subsidized by exporting countries,” Mr. Fausto added.

As of October, meat imports amounted to 1.02-billion kilograms, according to the Bureau of Animal Industry (BAI).

The BAI reported that Brazil was the top supplier, accounting for 343.86 million kg. This was followed by the US and Spain with 179.64-million kg and 123.36-million kg, respectively.

Meat Importers and Traders Association President Jesus C. Cham said that lower costs for acquiring meat could potentially lower retail prices.

“A lower-cost environment will always provide a better cushion against price increases. This will benefit consumers,” Mr. Cham said in a Viber message.

National ID registrations running 10% below target

December 28, 2023 | 8:23 pm

THE Philippine Statistics Authority (PSA) said the sign-up numbers for the national ID, also known as the Philippine Identification System (PhilSys) are 10% below the target of 92 million for 2023.

“As of Dec. 18, 82,812,899 Filipinos are PhilSys-registered,” the PSA said in a statement Thursday.

“We extend our heartfelt gratitude to the public for their steadfast support for the implementation of PhilSys,” Undersecretary, National Statistician, and Civil Registrar-General Claire Dennis S. Mapa said.

“We, at the PSA and our field offices, are exerting all efforts to ensure coverage of Filipinos who have not yet registered,” he added.

Mr. Mapa said the PSA will strive to bring PhilSys registration teams to every community.

“Registration with PhilSys remains easy and convenient. Filipinos can go to any registration center and bring their supporting documents. No pre-registration required,” the PSA added.

The PSA is also working to speed up the printing and delivery of physical ID cards, known as PhilIDs, to serve as valid proof of identity and age in all transactions.

As of Dec. 8, the Bangko Sentral ng Pilipinas has sent out for delivery 48,770,513 PhilIDs.

Of these, 44,803,320 have been delivered by the Philippine Postal Corp.

“In addition, 44,142,431 ePhilIDs, both printed and downloaded, have been issued,” it added, referring to the temporary paper IDs issued shortly after registration prior to receipt of the card ID. — Aaron Michael C. Sy

PEZA cites ease of doing business as critical in attracting investment

December 28, 2023 | 8:20 pm

THE PHILIPPINE Economic Zone Authority (PEZA) said ease of doing business considerations are a major factor when locators pick their global manufacturing hubs.

“This is a big deal especially for those who invest (when) they make in their choice of which country they will build their manufacturing export facility in,” PEZA Director General Tereso O. Panga said in a statement.

Mr. Panga also called for investment promotion agencies to be given more legal authority to attract investment on their own, and for the restrictions to be loosened on the establishment of new ecozones.

“(Our) immediate objective is to further strengthen the ease of doing business in accordance with the (executive order) 18 directive of the President to provide “green lanes” for investors especially in the production of exports, most of which are located within the ecozones,” he added.

EO 18 called for green lanes to expedite, streamline, and automate government processes in the case of strategic investments.

Meanwhile, Mr. Panga described the amendment of the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) law as a top priority.

“(This would) further strengthen financial incentives and the ability of investment promotion agencies such as PEZA to implement policies to attract more foreign investors,” he added.

Earlier, the Departments of Finance and Trade and Industry approved an amendment to the CREATE law, allowing transitory domestic market enterprises availing of the 5% gross income tax scheme to register as VAT taxpayers.

The House Ways and Means Committee had approved the CREATE MORE (CREATE to Maximize Opportunities for Reinvigorating the Economy) bill, which aims to improve the VAT refund system and authorize the President to grant incentive packages without going through the Fiscal Incentives Review Board.

PEZA has set a target of P250 billion in approved investments next year. — Adrian H. Halili

Measure proposes reduced taxes for parents of children with special needs

December 28, 2023 | 8:20 pm

A BILL seeking to grant tax cuts to parents of children with special needs has been filed at the House of Representatives.

The proposed law seeks to “alleviate the financial strain that many families with special needs children face daily and to encourage them to continue providing the necessary care and support to these children, thus promoting their overall well-being and development,” Muntinlupa City Representative Jaime R. Fresnedi said in House Bill No. 9690.

“A solo parent, and for spouses, the parent who has a higher income, shall be entitled to a 1% deduction in income tax upon submission of receipts on expenses incurred in caring for a child with special needs,” according to a copy of the bill.

“We envision giving a financial lifeline to these caregivers through income tax deductions due to expenses incurred in caring for children with special needs,” he added.

Expenses that may be deducted against tax include tuition, therapy, diagnostic evaluations, tutoring, transportation to school or a medical facility, and specialized instructional materials.

A child with a disability can cost parents 80% more than normal, UNICEF said in a 2022 report. It also said that poverty rates are 50% higher in households that include children with disabilities.

There are about 1.6-million children with disabilities in the Philippine, according to UNICEF.

“This demographic is often underserved and marginalized, struggling to access the appropriate education, medical care, and support systems that can make a significant difference in their lives,” Mr. Fresnedi added.

Under the measure, the Health, Education, and Social Welfare departments will be directed to create a financial assistance package for children with special needs.

The bill is currently with the House committee on ways and means.

The Special Needs Education Program under the Education department’s Program Support Budget has a total funding of P6.4 billion for next year. — Beatriz Marie D. Cruz

Power distributors with unapproved PSAs barred from passing on costs, ERC says

December 28, 2023 | 8:19 pm

THE Energy Regulatory Commission (ERC) said it will not allow power distributors to recover costs from consumers if they have failed to file or win approval for their power supply agreements (PSAs).

The cost recovery rules are among the revised guidelines governing the conduct of competitive selection processes (CSP).

Maria Corazon C. Gines, ERC legal service director, said in a briefing Thursday that the commission has come across situations of distribution utilities (DU) and generation companies seeking to pass on costs even with unapproved PSAs.

“In order to dissuade this kind of practice, this is now policy… that if it has not been filed with the ERC, even though you have recovered, you do not have anything to pass through to the consumers,” she said.

Under Resolution No. 16, series of 2009, a some costs can be passed through to the consumers such as the National Power Corp.-Time-of-Use (NPC-ToU) rates.

“In the case of ineligible supply contracts, generation costs from such contracts shall include the kilowatt-hours pertaining to ineligible contracts pegged at the DU’s load weighted average NPC ToU rates or the actual rate as billed by the IPP (independent power producer), whichever is lower,” according to the resolution.

“We previously considered those contracts as ineligible, but then, we recognized that there is still cost and there should still be a certain recovery on the part of the generation companies,” Ms. Gines said.

The ERC issued the revised CSP on Oct. 6, outlining the rules governing the procurement, execution, and evaluation of PSAs entered into by DUs for the supply of electricity to their captive market. — Sheldeen Joy Talavera

Teeners Quizon, Arca stay in title hunt in ‘Battle of Grandmasters’

December 28, 2023 | 7:22 pm

TEENAGE sensations Daniel Quizon and Christian Gian Karlo Arca delivered the worthiest performances of the day to stay in the title hunt in the Philippine National Chess Championships dubbed “The Battle of Grandmasters” at the Marikina Community Convention Center.

Mr. Quizon, a 19-year-old International Master (IM), brought down many-time national champion Grandmaster (GM) Joey Antonio to seize the joint lead with IM Jem Garcia, who dismantled Vince Angelo Medina, on pristine scores of two points.

Mr. Arca, a 14-year-old FIDE Master, for his part, bared his true fangs as he turned back battle-tested IM Barlo Nadera and leapfrogged to a five-way logjam at third with 1.5 points.

That chase group included Janelle Mae Frayna, the country’s first and only Woman GM who stunned nemesis GM Darwin Laylo in Wednesday’s opener and drew with FM Mark Jay Bacojo in the second.

Both Messrs. Quizon and Arca, who just last month captured the blitz gold in the World Youth Championship in Italy, are seeking to claim one of the three slots to the World Chess Olympiad slated from Sept. 10 to 23 in Budapest, Hungary.

Mr. Quizon played once in the Olympiad when it was still done online during the pandemic but never over-the-board in the biennial meet.

This one could be his first.

Part of that hungry chase pack of wolves were Mark Jay Bacojo, who split the point with Ms. Frayna, Jerish John Velarde, who trounced WIM Antoinette Marie San Diego, and GM John Paul Gomez, who bested Samson Chiu Chin Lim III.

Mr. Laylo came roaring back to title race from a stinging opening day setback with a smashing win over IM Paulo Bersamina.

Aside from Olympiad seats, the winner of this 14-player, 13-round meet presented by Marikina City Congresswoman Maan Teodoro and Mayor Marcy Teodoro and backed NCFP Chairman President Prospero Pichay, Jr., POC President Abraham Tolentino, Philippine Sports Commission Chair Richard Bachmann, the Eugene Torre Chess Foundation, Pande and Amerikana’s Jundio Salvador pockets the P120,000 top purse. — Joey Villar

Kai Sotto on loan transfer to Yokohama B-Corsairs

December 28, 2023 | 7:22 pm

KAI SOTTO is off to a new team in the Japan B. League.

Through a loan transfer from his former club Hiroshima Dragonflies, the 7-foot-3 Filipino sensation will now play for the Yokohama B-Corsairs according to the team’s official announcement on Thursday.

Mr. Sotto’s transfer period is effective until the end of the ongoing 2023-2024 B. League season.

The 21-year-old cager signed a one-year extension with the Dragonflies this season prior to his loan transfer nearing the halfway mark of the tournament.

Hiroshima, his former squad, currently sits at 17^th place with an 11-13 slate while Yokohama is at 19^th with a 10-14 mark.

The B-Corsairs are expecting Mr. Sotto’s contribution to turn their fortunes around for a rejigged playoff push with still a bevy of games left in the regular season.

“In order to reach this goal, we have decided to make changes to our roster. Kai Sotto is a very promising young player (with height) and a shooting touch,” said General Manager Ken Takeda.

“We have high expectations for him, not only as an inside defense and rebounder but also as a new option on offense. I believe that with the addition of Sotto, the team will gain even more energy and accelerate into the mid-game and second-half games.”

Mr. Sotto vowed to make his presence felt for Yokohama after recovering from a back injury that sidelined him for Hiroshima early in the season.

“I’m very blessed to be given this opportunity and I will make the most out of it. I’m very excited to play for the city of Yokohama. I can’t wait to win more games and get better as a player,” said Sotto, who is expected to debut on Dec. 30 against the fifth-running Mikawa squad with a 16-8 slate.

Mr. Sotto, who also had a stint with the Adelaide 36ers in his pro career before jumping to Japan, is coming off a solid campaign with Gilas Pilipinas in the FIBA World Cup here in Manila.

He already completed his transfer papers but will still have to wait for the approval of his application from the Migrant Workers Office, an office operated by the Philippine government to protect and support the welfare of Filipino workers and their families working in Japan, before playing. — John Bryan Ulanday