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Gov’t debt at end March hits 63.5% of GDP at P12.68-T

BW FILE PHOTO

THE National Government’s debt at the end of March was P12.68 trillion, equivalent to 63.5% of gross domestic product (GDP), the Bureau of the Treasury said on Thursday.

The debt level in GDP terms is 3.1 percentage points than the year-earlier level, and exceeds the 60% threshold considered manageable by multilateral lenders for developing economies.

The 63.5% level compares with 60.5% at the end of 2021 and the 65.7% posted at the end of 2005.

Some 44.4% of the debt-to-GDP ratio was accounted for by domestic debt, and 19.1% foreign debt.

Of the domestic debt, Treasury bonds accounted for P7.91 trillion, or over 89%. Some P656.60 billion was raised via Treasury bills.

The debt stock is equivalent to 61% of gross national income. The debt service bill was equivalent to 6.4% of GDP.

In the first quarter, the government made debt payments of P313.65 billion, down 39.85% from a year earlier. In March, the government paid P67.39 billion, down nearly 75%. 

Principal payments for the first quarter amounted to P164.32 billion, or 52% of the total, while interest payments came in at P149.33 billion.

Guaranteed debt totaled P411.04 billion at the end of March, accounting for 2.1% of GDP. It declined 5.5% from a year earlier.

Separately, the Bureau of Local Government and Finance reported that it issued 13 certificates of net debt service ceiling and borrowing capacity in April, bringing the running total for 2022 to 86 certificates.

These certificates are sought by local government units (LGUs) to demonstrate their debt-paying capacity.

The 11 municipalities and two cities that were issued certificates have a combined borrowing capacity of P4.47 billion.

LGUs borrow to finance the construction of roads, public markets, and the procurement of heavy equipment, including trucks, buses, and excavators.

Funds were also applied to the construction of a municipal hall, transport terminals, a water system, and a sanitary landfill.

An infrastructure spending ban was imposed on March 25, the start of the campaign period. — Tobias Jared Tomas

Draft IRR outlines special IP protections for indigenous weaves, distinctive domestic foods

PHILSTAR FILE PHOTO

THE Intellectual Property Office of the Philippines (IPOPHL) said its draft rules for the Intellectual Property Code includes special protections for the products of indigenous peoples, in particular their food and woven goods, as well as other domestic items based on their geographic origins.

IPOPHL said the implementing rules and regulations (IRR) for Republic Act No. 8293, or the IP Code, drafted by the Bureau of Trademarks, recognize a mechanism for protecting products via a system of Geographical Indications (GIs) that will render such products protectable.

Expected beneficiaries of the GI scheme are Guimaras mangoes and the Tau Sebu T’nalak weaves, which are registered as collective marks, it said in a statement. 

“Others are Bicol pili, Davao pomelo, Cordillera heirloom rice; Camiguin lanzones; Davao cacao; Kalinga coffee; Antique bagtason loom products; Aurora sabutan weaves; Samar basey banig mats; Basilan and Zamboanga Yakan cloth; and Masbate beef and Baguio strawberries,” IPOPHL said.

The draft IRR defines GIs as “any indication which identifies a good as originating in a territory, region or locality, where a given quality, reputation, or other characteristic of the good is essentially attributable to its geographical origin and/or human factors.”  

The IRR added that the protection of GIs builds competitive advantage for indigenous and other domestic products.

The IRR draft underwent a first round of stakeholder consultations on Thursday.

“We hope we can finalize and implement the IRR soon so we can make our unique and high-quality Philippine products more attractive. Supporting these goods (in gaining) the global spotlight they deserve, will make a tangible difference in the lives of our farmers, our weavers and all who make up our GI landscape,” IPOPHL Director General Rowel S. Barba said.

The IRR also outlines a registration and application process. Protection for a GI will remain valid unless its registration is cancelled.

According to the IPOPHL, GIs are protected under the trademarks section of the IP Code. — Revin Mikhael D. Ochave

EVs still expensive after waiving import tariffs, industry tells TC

REUTERS

A ZERO tariff scheme for imported electric vehicles (EVs) will not make them significantly more competitive on price relative to cars powered by internal combustion engines, the Electric Vehicle Association of the Philippines (EVAP) said.

EVAP Executive Director Jose Bienvenido Manuel M. Biona said at a Tariff Commission (TC) hearing on Thursday that the zero-tariff proposal will not make EVs less expensive than cars using conventional fuel.

“(The) removal of import tariffs on EVs (excluding tricycles and jeepneys since they are produced in the Philippines) would reduce the cost, although they would remain more expensive than internal combustion engine vehicles (ICEs),” Mr. Biona said.

“We’ve done already the math. The industry forecasts that it will not be competitive,” he added.

The hearing was evaluating the Department of Trade and Industry’s (DTI) proposal for zero-tariff EV imports, down from the current 30%.

The proposal was meant to hasten EV adoption in the face of high oil prices.

Mr. Biona said, however, that zero EV tariffs will not have a significant impact on government revenue.

“(The) impact… on revenue… will be minimal considering that the more popular ICE models are mostly sourced from Southeast Asia or locally produced, or from countries with which we have free trade agreements,” Mr. Biona said.

Mr. Biona added that the government could consider granting tariff exemptions for electric motorcycles instead to boost demand.

“(Electric) motorcycles may be granted import tariffs exemptions over a limited period to help build up demand to attract manufacturing investors,” Mr. Biona said.  

“We believe that we have the capacity to produce the motorcycles here,” he added.

Energy Utilization Management Bureau Director Patrick T. Aquino said a zero tariff is expected to be positive for EV adoption as well as jobs.

“It would encourage end-users to shift to EVs and aid in increasing the number of EVs in the current vehicle fleet of the country,” Mr. Aquino said.

“It can generate employment opportunities for the workforce,” he added.

According to the TC, the DTI’s zero tariff proposal runs for five years. — Revin Mikhael D. Ochave

Lamudi reports spike in CBD rental inquiries as on-site work resumes

STOCK PHOTO | Image Dmitry Berdnyk from Unsplash

RESIDENTIAL RENTERS seeking dwellings in the central business districts (CBDs) of Makati, Pasig, and Taguig spiked in the first quarter after companies availing of fiscal incentives in economic zones were ordered to return to on-site work by April 1, online real estate marketplace Lamudi said.

It said in a statement that the challenge for landlords that will house workers returning to the office will be to match the conditions the workers had grown accustomed to after up to two years of working from home.

“While this offers promising opportunities for real estate players, it also presents challenges, primarily in making commercial spaces appealing to employees who have become used to working from home,” Lamudi CEO Kenneth Stern said in the statement.

In a report on the data it had compiled from the first quarter, Lamudi found that prospective CBD renters were split 60-40 between Metro Manila residents and those originating from outside of the capital, with the prime renting demographic aged 18 to 34.

The top generator of rental leads for the CBDs were hinterland cities of Mega Manila like Angeles, Antipolo, Bacoor, Calamba, and Lipa. Cebu City was the ninth-largest source of leads for Taguig, and Baguio City was in the top 10 for Pasig.

Lamudi said the majority of rental inquiries from Bacoor, Calamba, and Lipa were for rooms to rent, bed spaces, and studio units, while inquiries from Metro Manila-based renters were mainly for one-bedroom, two-bedroom, and studio units.

Metro Manila-based renters were most interested in condominiums, whereas Luzon-based renters were more evenly distributed between apartments and condominium units.

Rooms for rent in Quezon City ranged from P3,500 for a 15-square meter space. The same space averaged P3,800 in Pasig and P4,990 in Makati.

It said the main driver of the residential rental market was job opportunities in the information technology- business process outsourcing industry, as well as corporate headquarters located in the CBDs. — Patricia B. Mirasol

Manila Water Consortium controlling shareholder buys out minority owner

MANILA WATER Philippine Ventures, Inc. (MWPV), the controlling shareholder of Manila Water Consortium, Inc. (MWCon), said 39% minority owner Metropac Water Investments Corp. (MWIC) was bought out, bringing its stake in the consortium to 84% and raising another minority partner’s share to 16%.

In a disclosure to the exchange on Thursday, Manila Water Co., Inc. (MWC) said its wholly-owned unit MWPV acquired 107,601,639 shares formerly held by MWIC in the consortium for P1 per share.

Following the tripartite transaction, the other minority partner, Viscal, will own 16% of MWCon, up from 10% previously.

“The transaction is in line with MWC’s strategic direction to maximize the potential of existing business and take on opportunities for growth and expansion in the Province of Cebu and eventually in the Visayas and Mindanao regions. The acquisition of the MWCon shares allows MWC to optimize project returns with its efficient execution and operation of the project, and sound regulatory and stakeholder management,” MWC said.  

“MWCon is the partner of the Province of Cebu in the implementation of the 2012 Joint Investment Agreement for the development and delivery of bulk water supply to the Cebu Province, which is being carried out by their joint venture company, Cebu Manila Water Development, Inc.,” it added.

“The transaction will have no effect on project execution and operation of the project assets. Ultimately, the project retains its projected benefits to be provided to the customers of the Metro Cebu Water District,” MWC said. — Revin Mikhael D. Ochave

Converge says SEA-HK cable running by 2024

REUTERS

LISTED FIBER internet provider Converge ICT Solutions, Inc. said on Thursday that the Southeast Asia-Hong Kong submarine cable project in which it is a member is expected to be operational by 2024.

“The system is targeted to be ready for service in 2024, which (will) help businesses and consumers benefit from increasing digital ties,” the company told the stock exchange.

Companies involved in the South East Asia Hainan — Hong Kong Express Cable System project are China Mobile International Ltd., China Unicom Global, Converge, and PPTEL SEA H2X Sdn.

The submarine cable system will connect Hong Kong, Hainan, the Philippines, Thailand, East Malaysia, and Singapore, with options to extend to Vietnam, Cambodia, West Malaysia and Indonesia.

“At approximately 5,000 kilometers in length, the (submarine cable system) will consist of at least 8-fiber pairs between Hong Kong and Singapore, with a design capacity of 160 terabits per second to meet the growing bandwidth requirement in the region,” Converge said.

The completion of the project “will respond to the high broadband demand between Hong Kong and Southeast Asia by providing needed capacity and faster transmission, and in preparation for the coming 5G era,” it added.

Converge Chief Executive Officer and Co-Founder Dennis Anthony H. Uy said the project “will serve as a crucial infrastructure to add diversity and redundancy to our international network.”

“We are truly diversifying our international capacity portfolio as transpacific demand will be served by the Bifrost, and now trans-Asia demand will be served by (this new submarine cable system),” he added.

Converge ICT shares closed 2.93% lower at P26.50 on Thursday. — Arjay L. Balinbin

Comelec junks appeal to declare Marcos as a nuisance candidate 

Presidential candidate Ferdinand "Bongbong" Marcos Jr. is seen at the miting de avance in Paranaque City, May 7. — PHILIPPINE STAR/KRIZ JOHN ROSALES

THE COMMISSION on Elections (Comelec) has rejected an appeal seeking to reverse a division ruling that said ex-senator Ferdinand “Bongbong” R. Marcos, Jr. is a legitimate candidate for this year’s elections.  

In a seven-page resolution dated May 11 and sent to reporters on Thursday, the Comelec full court said the petitioner’s failure to raise new arguments to prove that Mr. Marcos is a “nuisance” bet and cancel his certificate of candidacy.  

The petitioner claimed that Mr. Marcos’s main purpose to run for president is “to have his family’s political comeback in Malacañang,” which the Comelec dismissed as sweeping statements.  

The Comelec Second Division earlier dismissed the lawsuit for failing to prove its claim against Mr. Marcos, who has a commanding lead in the partial and unofficial results of this year’s presidential race.  

“A careful review of the Motion for Reconsideration reveals that it contains merely a rehash of petitioner’s averments and arguments,” according to a copy of the en banc resolution. 

Under Comelec law, a candidate may be considered a nuisance bet if they intend to cause confusion among voters by the similarity of names, have no genuine intention to run for the position, and plan to put the election process in mockery or disrepute.  

The Comelec full court on Tuesday affirmed the dismissal of several motions seeking to overturn the dismissal of disqualification cases against Mr. Marcos, who is headed for a landslide victory.  

The lawsuits that sought to bar the former senator from this year’s elections were anchored on his conviction in the 1990s for failing to file his income tax returns on four consecutive occasions.  

Election Commissioner George Erwin M. Garcia inhibited himself from deliberating on cases involving Mr. Marcos, his former client.  

Political experts have said that petitioners would likely challenge the case before the Supreme Court.  

“I expect the decision to be brought to the Supreme Court,” Michael Henry Ll. Yusingco, a senior research fellow at the Ateneo de Manila University Policy Center, said in a Facebook Messenger chat. “The case can be a hovering threat to the presidency of Marcos.” — John Victor D. Ordoñez 

Sara ditches preferred defense post to avoid stability ‘intrigues’ 

PHILIPPINE STAR/KRIZ JOHN ROSALES

PRESUMPTIVE vice president Sara Duterte-Carpio said on Thursday she has agreed to head the Department of Education instead of the defense agency, which she earlier expressed preference for, to avoid intrigues that she would use the position to destroy the supposed unity forged by their camp. 

Ms. Duterte said she and presumptive president Ferdinand “Bongbong” R. Marcos, Jr. discussed the possibility of her becoming the chief of the Department of National Defense (DND) before the campaign but decided to let go of the plan after the May 9 polls.  

“I expect that people who want to see the new administration fail will fabricate intrigues about my loyalty and the DND position to break the UniTeam,” she said in a statement, referring to their alliance, which has been described by academics as the coalition of influential clans in the country.  

Ms. Duterte said it was decided that she would work on producing skilled learners with the mindset to realize their full potential as individuals.  

“Our generation needs a future generation of patriotic Filipinos [who will] advocate peace and discipline in their respective communities,” said the presidential daughter.  

During the campaign, Ms. Carpio said she would push for the return of a mandatory military training for youth, which was abolished for enabling abuses committed by implementers in schools.  

Education groups have slammed the planned appointment, citing Ms. Carpio’s lack of experience in the learning sector.   

The Teachers Dignity Coalition said they prefer to have an Education chief from their ranks, “preferably a classroom teacher or someone who has previous experience as part of the education sector.”  

Other groups cited the possibility of a total wipeout of education on the country’s history regarding the martial rule of the late dictator Ferdinand E. Marcos.   

“Under Secretary Duterte, book-purging will worsen, historical distortion will become more rampant, and fake news will ultimately be normalized,” the Student Christian Movement said in a statement.  

“The horrors of Marcos and Duterte [administrations] will be sanitized,” it said.  

The Book Development Association of the Philippines (BDAP), the largest book industry alliance in the Philippines, and various academic groups last year waged a campaign against efforts by President Rodrigo R. Duterte’s anti-communist task force to purge libraries in some schools of books and documents deemed subversive.  

“What we need is a leadership that recognizes the learning crisis, the desperate quality of education, the chronically underpaid status of teachers, and the denigration of the country’s sense of history,” the Alliance of Concerned Teachers said.   

Outgoing Education Secretary Leonor M. Briones welcomed the potential appointment, saying she and her colleagues at the agency “are ready to work with her team for the orderly transition of leadership.”  

Ms. Briones said the Education department will turn over a medium term plan for the learning sector. — Kyle Aristophere T. Atienza 

Hontiveros confident Senate can still have a relevant minority in the 19th Congress 

SENATE.GOV.PH

SENATOR Ana Theresia “Risa” N. Hontiveros-Baraquel, who is poised for reelection based on the still unofficial May 9 voting tally, is confident that there will still be a minority bloc that will be formed in the upper chamber despite being the only opposition member among the 12 leading senatorial candidates.  

“I will still look for comrades who will form the minority in the entire Senate, there’s twenty-four of us,” she said in Filipino in an interview with Radyo5 on Thursday. “We will start talking and hopefully, we will be able to speak publicly soon enough.”  

The senator noted the importance of a minority as they ensure checks and balances within the independent institution.  

“An opposition cannot be lost. The minority cannot be lost, especially in an institution like the Senate,” Ms. Hontiveros said.   

In a diverse society with different branches of government, there will always be a need to reflect on a wide range of opinions, the opposition senator said.  

“So that if there is malfeasance, misfeasance, or nonfeasance, it will be addressed, corrected if it is wrong, filled if it is lacking,” she said.  

Nine of the top 12 senatorial bets are connected with Ferdinand “Bongbong” R. Marcos, Jr. who is headed for a landslide presidential victory.   

The two others ran as independent candidates — Taguig-Pateros Rep. Alan Peter S. Cayetano and TV journalist Rafael “Raffy” T. Tulfo.    

As of Thursday afternoon, Ms. Hontiveros has received 15.3 million votes in the partial, unofficial tally, ranking 11th among the 64 senatorial candidates.  

Ms. Hontiveros said senators will surely speak out against the Executive branch, no matter how strong the president may be, if there are serious issues concerning the public and the country.    

“I, as a member of the opposition, am still at stake there, and I will really try to make us effective, especially in the coming years,” Ms. Hontiveros said.  

SITTING SENATORS
Among the current senators, three are members of the Nacionalista party and related to some of the frontrunners: Senator Pia S. Cayetano, sister of Mr. Cayetano; Senator Maria Imelda “Imee” R. Marcos, sister of Mr. Marcos; and Senator Cynthia A. Villar, mother of Mr. Villar. 

Three others are members of the ruling Partido Demokratiko Pilipino–Lakas ng Bayan: Senators Ronald M. dela Rosa, Aquilino Martin L. Pimentel III, and Senator Francis N. Tolentino.  

Senator Mary Grace S. Poe-Llamanzares won as an independent candidate in 2019. 

Other senators are under different political parties: Senator Juan Edgardo “Sonny” M. Angara under Laban ng Demokratikong Pilipino; Senator Maria Lourdes Nancy S. Binay, United Nationalist party; Senator Christopher Lawrence “Bong” T. Go, Pederalismo ng Dugong Dakilang Samahan; Senator Manuel “Lito” M. Lapid, Nationalist People’s Coalition; and Senator Ramon “Bong” Revilla, Jr., Lakas–Christian Muslim Democrats, the party of Mr. Marcos’s running mate, Davao City Mayor Sara Duterte-Carpio, who is also leading by a wide margin in the tally. — Alyssa Nicole O. Tan 

3 Indian BPO firms consider setting up shop in Davao  

THREE India-based business process outsourcing (BPO) companies are eyeing to locate in Davao City, an industry official said.       

Samuel R. Matunog, president of the umbrella organization ICT Davao, Inc., said they recently met with representatives of the three firms to discuss requirements on human resources and available office spaces that are registered the Philippine Economic Zone Authority.  

“I am really excited by this sudden wave of locator interest because for every person who gets employed in the BPO industry is one less poor in our community,” Mr. Matunog told BusinessWorld.  

He said one of the BPOs already has several offices nationwide and is looking to expand in Davao City.    

“The other is a multinational corporation that provides information technology, consulting, and business process services,” he said. 

Another company, AGS Health, focuses on healthcare sector services such as medical coding, billing, insurance, and revenue cycle management.  

Mr. Matunog said the Davao City Investment and Promotion Center, along with officials of the Board of Investments and ICT Davao, provided a briefing last month to AGS Health on tax incentives and other perks offered under both national and local laws.    

AGS Health is planning to hire 1,500 agents within the first three years of operations in the city.     

“The presence of these companies mean there will be more competition for qualified talent. But their investment will ensure that our current cohort of college students of more than 80,000 will have a ready market for their talents,” Mr. Matunog said. — Maya M. Padillo 

Booster

BANGSAMORO.GOV.PH

SULU Governor Abdusakur M. Tan receives his second booster shot against COVID-19 as the Bangsamoro regional government launches special vaccination days starting this week to increase jab the region’s low immunization coverage. “I received my second Pfizer booster to show that this vaccine is safe and effective, with fatwa (Islamic ruling) from our Grand Mufti that it is halal, and moreover it is free,” said Governor Tan, the reelectionist governor.

Bucks erase fourth-quarter deficit, stun Celtics

BOBBY Portis turned a missed Giannis Antetokounmpo free throw into a go-ahead hoop, Jrue Holiday made two critical defensive plays in the final 8.1 seconds and the visiting Milwaukee Bucks rallied past the Boston Celtics 110-107 on Wednesday night for a 3-2 lead in their Eastern Conference semifinal playoff series.

Antetokounmpo finished with a game-high 40 points, including a 3-pointer during Milwaukee’s late comeback, to put the Bucks one win away from their third trip to the Eastern Conference finals in the past four seasons.

Game 6 of the best-of-seven series is scheduled for Friday night at Milwaukee.

Portis’ game-winning basket came after Antetokounmpo got Milwaukee within 107-106 by making the first of two free throws with 14.2 seconds left, then missed the second.

Two Celtics fought over the rebound in a crowd, and when the ball deflected to Portis under the hoop, he converted a layup that gave the Bucks the lead for good.

Marcus Smart attempted to counter immediately for the Celtics, but Holiday blocked his driving attempt with 8.1 seconds left and threw the ball off Smart and out of bounds, giving the Bucks possession with 6.6 seconds to go.

The Celtics were then forced to foul Pat Connaughton, and his two free throws with 5.9 seconds left completed the scoring.

Without a time out available, the Celtics had to try to rush the ball up the court for a potential game-tying 3-pointer, but Holiday stripped Smart near midcourt and ran out the clock on Milwaukee’s second win at Boston in the series.

Boston’s Jaylen Brown scored 16 of his 26 points in the third quarter, when the Celtics appeared to take control of the game. The hosts were up by nine points after three periods and by as many as 14 early in the fourth.

The Bucks chipped away, eventually drawing even at 105-all with 42.4 seconds remaining after Antetokounmpo and Holiday buried 3-pointers.

Jayson Tatum capped a team-high, 34-point game by sinking two free throws with 31.1 seconds left to put Boston back up by two, setting up the wild finishing sequence.

Antetokounmpo completed a double-double with 11 rebounds, while Portis led all rebounders with 15 off the bench and contributed 14 points.

Holiday finished with 24 points, eight rebounds and a game-high eight assists, and Connaughton had 13 points for the Bucks, who outscored the Celtics 39-30 on 3-point attempts. Holiday had four of Milwaukee’s 13 treys.

Smart (15 points) and Daniel Theis (11) backed Tatum and Brown for the Celtics. — Reuters

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