Peso climbs as worries over oil supply ease

March 10, 2022 | 9:00 pm

THE PESO appreciated versus the greenback on Thursday on the prospects of additional oil production, which could ease supply worries caused by Russia’s attacks on Ukraine.

The local unit closed at P52.155 per dollar on Thursday, stronger by 7.5 centavos from its P52.15 finish on Wednesday, based on data from the Bankers Association of the Philippines.

The peso opened Thursday’s session at P52.12 against the dollar. Its weakest showing was at P52.24, while its intraday best was at P52.05 versus the greenback.

Dollars exchanged increased to $1.208 billion on Thursday from $1.135 billion on Wednesday.

The peso strengthened after the United Arab Emirates (UAE) expressed its willingness to increase fuel production alongside other major oil exporters.

UAE Energy Minister Suhail al-Mazrouei on Wednesday said they are committed to ramp up oil supply by 400,000 barrels per day monthly, in line with an agreement by the Organization of the Petroleum Exporting Countries and allies, Reuters reported.

Brent crude futures settled down $16.84 or 13.2% at $111.14 a barrel, their biggest one-day decline since April 21, 2020. US crude futures ended down $15.44 or 12.5% at $108.70, their biggest daily decline since November.

However, on Thursday, Brent crude futures were up 3% on Thursday, at $114.64 a barrel, and US crude rose 1.73% to $110.58 a barrel.

The market also priced in Ukraine’s position of being open to not joining the North Atlantic Treaty Organization (NATO), which was among the causes of its rift with Russia, a trader said.

Ukrainian President Volodomyr Zelensky on Wednesday said they will no longer insist on their country’s NATO membership. He said he understood that the alliance is not prepared to accept Ukraine due to possible confrontation with Russia.

For Friday, Mr. Ricafort gave a forecast range of P52.00 to P52.20 per dollar, while the trader expects the local unit to move within P52.05 to P51.30. — L.W.T. Noble with Reuters

Congressman bats for wage hikes

March 10, 2022 | 9:00 pm

A congressman on Thursday evening said he would endorse petitions for wage increases to the Labor department amid surging global oil prices.

In a statement, Albay Rep. Jose Maria Clemente S. Salceda said the country’s minimum wage is “severely, almost embarrassingly unprepared for price hikes to come this year.”

He said Manila, the capital and nearby cities have not had a wage increase since 2018. “That leaves ordinary, working-class Filipinos totally unprepared for the price hikes that will inevitably come due to rising oil prices.”

The National Capital Region’s (NCR) daily minimum wage of P537 is now worth only P464 based on 2018 prices, said Mr. Salceda, who heads the House of Representatives ways and means committee.

“That means that today’s NCR minimum wage would be able to buy P73 less in goods in 2018. That is grossly unfair to the working class,” he added. — J.E.G. Tan

DBM fund releases top P3 trillion, exceeding 60% of 2022 budget

March 10, 2022 | 8:28 pm

THE Department of Budget and Management (DBM) said on Thursday that it had released over P3 trillion to government agencies and local government units at the end of February.

The fund releases of P3.06 trillion account for 60.8% of the P5-trillion national budget for 2022.

This leaves P1.97 trillion more to be released this year.

The DBM had released P3.4 trillion, representing 76.5% of the P4.5-trillion 2021 budget, by the end of February 2021.

In February 2022, releases to government agencies amounted to P2.4 trillion, representing 83.2% of the total allotted to them.

Special purpose funds released during the month were P110.4 billion, or 24.2% of the allotted amount.

Special purpose funds include budget support for local government units, the Contingent Fund, the Miscellaneous Personnel Benefits Fund, and the National Disaster Risk Reduction and Management Fund.

Releases from automatic appropriations hit P483.6 billion, or 28.7% of the funds due to be disbursed this year.

These automatic appropriations include retirement and life insurance premiums, internal revenue allotments, block grants, and interest payments.

The national budget for 2022 is aimed at supporting a recovery from the pandemic. The budget is equivalent to 21.8% of the projected gross domestic product, with a fifth set aside for capital outlays, including infrastructure spending. — Jenina P. Ibañez

Farmer, fisherfolk registry contains 5.4M beneficiaries

March 10, 2022 | 8:28 pm

THE government stands to pay out fuel and fertilizer subsidies and other benefits to more than 5.4 million farmers and fisherfolk in the national registry, the Department of Agriculture said.

“Once registered, they are given priority in availing of agriculture and fishery assistance in the form of cash or farm inputs like seeds and fertilizer, fuel subsidy vouchers, and crop insurance,” Agriculture Secretary William D. Dar said in a statement.

The Registry System for Basic Sectors in Agriculture (RSBSA) has a target of registering up to 12 million farmers, farm workers, and fisherfolk to facilitate the distribution of aid, with the latest programs meant to address the rising cost of fuel and fertilizer.

Data from the National Coconut Farmers Registry System and the Bureau of Fisheries and Aquatic Resources’s fisherfolk registry will also be integrated into the program.

The RSBSA has three main components — farmer and fisherfolk profiling, farm parcel geo-referencing, and an interventions monitoring system.

Basic information collected in profiling includes personal data, farm ownership status, membership associations, or participation in any enterprises.

The geo-referencing component includes physical dimensions and GPS coordinates of the farm to help determine the farmer’s entitlement in programs where the benefits are based on landholdings.

The interventions monitoring system tracks the benefits received by farmers and fisherfolk.

The RSBSA was set up to deploy benefits authorized by the Rice Competitiveness Enhancement Fund’s Rice Farmers Financial Assistance program. Over 1 million rice farmers received P5,000 each. — Luisa Maria Jacinta C. Jocson

Manila Water to tap Laguna de Bay, wells, Marikina River in dry season

March 10, 2022 | 8:26 pm

MANILA WATER Co., Inc. said it is preparing to tap Laguna de Bay, deep wells, and the Marikina River during the dry season in response to low water levels at Angat Dam, the capital region’s main source of water.

With the Metropolitan Waterworks and Sewerage System and the National Water Resources Board, Manila Water said it will ensure “continuous water supply even during peak demand periods.”

On Wednesday, the water level at Angat Dam was 194.57 meters. Its normal operating level is 212 meters.

Manila Water said it will maximize sourcing from the 100 million-liter-per-day (MLD) Cardona Water Treatment Plant, which draws water from Laguna de Bay. It said deep wells are expected to provide an additional 115 MLD. It will also operate treatment plant drawing water from the Marikina River.

Operational adjustments include backwash recovery and water pressure management across the East Zone, Manila Water’s concession area.

If needed, Manila Water said additional water may be sourced from Alat Dam, which feeds the La Mesa Reservoir in Quezon City. — Luisa Maria Jacinta C. Jocson

USAID launches $15-million LGU climate resilience project

March 10, 2022 | 8:26 pm

THE United States Agency for International Development (USAID) on Thursday launched a $15-million climate resilience project for local government units (LGUs).

The project targets climate-vulnerable locations in Batangas, Legazpi, Iloilo, Borongan, Eastern Samar, Cotabato, and the Zamboanga region.

USAID will help LGUs gather data for climate mitigation plans and decisions, and improve their ability to manage climate-related financing, the Department of Finance said in a statement on Thursday.

“This timely initiative will help arm our local communities with the necessary knowledge to enable them to formulate climate adaptation and mitigation projects on the ground,” Finance Secretary Carlos G. Dominguez III said during the launch.

USAID in October said the five-year program will improve access to climate financing for cities and LGUs in support of the national climate change action plan.

The chairman-designate of the Climate Change Commission, Mr. Dominguez, said that climate financing from wealthier economies is still inaccessible.

He noted how wealthier economies failed to fulfill a pledge to roll out $100 billion in annual financing for emerging economies by 2020.

The Philippines is vulnerable to the effects of climate change even though it accounts for 0.3% of global greenhouse gas emissions, he said.

“We submitted a bold commitment to reduce such emissions by 75% in 2030. We are disappointed, however, that the Western countries with the greatest volume of emissions were far less ambitious in their commitments to rescue the planet,” he said.

The Philippines, under its first Nationally Determined Contribution for the United Nations Framework Convention on Climate Change, aims to reduce greenhouse gas emissions by 75% by 2030.

Of the 75% target, just 2.71% can be achieved with internal resources, while the remaining 72.29% would need to rely on international assistance.

Last month, Mr. Dominguez announced that the Philippines is preparing for a $500-million green bond offer “in the immediate future” while the government awaits favorable market conditions. Proceeds from green bonds are used for climate mitigation and environmental projects. — Jenina P. Ibañez

Sardine industry questions basis for SRP price controls

March 10, 2022 | 8:26 pm

THE Canned Sardines Association of the Philippines (CSAP) said the Department of Trade and Industry (DTI) needs to allow price increases to help the industry recover its costs, and noted that the Price Law is silent on the government’s preferred manner of price-setting, the suggested retail price (SRP) scheme.

“We understand that the DTI needs to perform a balancing act for both the manufacturers and the consumers. However, we are concerned that another round of fuel price hikes would drive up production costs by 3.5%,” CSAP Executive Director Francisco J. Buencamino said in a statement.

“The industry does not want a repeat of what happened during the height of the pandemic where the suggested retail price (SRP) was not adjusted for years and caused the canned sardine industry to suffer huge losses,” he added.

The CSAP said an SRP bulletin is an “act of price control,” noting the measure’s vagueness on trigger events that warrant the imposition of a prevailing price or ceiling price, which are the only valid forms of price control recognized by the Price Act, according to the association’s reading of the law.

Republic Act No. 7581 or the Price Act was passed to ensure reasonable prices for various necessities and prime commodities sold to the public.

“The SRP is recommendatory in nature so it should not be limiting the industry from implementing sound price adjustments, especially today when the odds are working against us,” Mr. Buencamino said.

“There is no provision in the Price Act requiring retailers to wait for the agency’s prior approval before implementing any price increase,” he added.

The CSAP said it expects to meet with the DTI within the week to discuss the matter. — Luisa Maria Jacinta C. Jocson

BoI, DENR tap software company to spur dev’t of cold chain industry

March 10, 2022 | 8:25 pm

THE Board of Investments (BoI) and the Department of Environment and Natural Resources – Environmental Management Bureau (DENR-EMB) signed a memorandum of understanding with Insight Supply Chain Solutions Corp. (InsightSCS Corp.) to develop solutions that will support the development of an integrated supply chain in the Philippines.

In a statement released on Thursday, BoI Governor Marjorie Ramos-Samaniego described the understanding, signed on Feb. 28, as a “crucial first step” to promote investment in the cold chain industry.

Ms. Ramos-Samaniego added that the partnership is considered a “milestone” for food security after the pandemic.

Under the partnership, the software company will develop a digital platform known as DeliverE 2.0: Cold Chain Integrated Supply Chain, which will allow real-time monitoring of cold chain assets and stored produce, enabling tracking and supply-demand forecasting for perishable produce.

“(We) will collaborate with InsightSCS in the development of DeliverE 2.0 to produce pertinent data, specifically a dashboard to locate existing cold storage service providers, present current and forecasted demand and supply as well as identify areas with gaps in service,” the BoI said.

The digital platform will be launched in key production areas in Luzon, specifically Benguet, Cagayan, Isabela, Nueva Vizcaya, Nueva Ecija, Batangas, Quezon, and Camarines Sur.

The project will focus on priority commodities like meat, fruit, vegetables, dairy, and fisheries, either fresh or processed.

Aside from farm goods, the BoI said, the cold chain can also help support the distribution of vaccines, extend the shelf life of produce, and ensure the availability of buffer stock in times of crisis. — Marielle C. Lucenio

PHL digital economy seen accounting for 12% of GDP by 2030

March 10, 2022 | 8:25 pm

THE Philippine digital economy’s revenue is projected to grow to the equivalent of 12% of gross domestic product (GDP) by 2030, as artificial intelligence (AI) becomes more widely adopted by the business process outsourcing industry.

In a virtual forum hosted by Digital Pilipinas on Thursday, Trade Undersecretary Rafaelita M. Aldaba said the sector generated $17 billion in revenue in 2021, which is projected to increase to $25 billion by 2025, and then $92 billion by 2030.

“Many Filipino startups were able to quickly pivot to new activities and the use of new technology. They provided solutions to help the government address issues encountered during the pandemic. The acceleration of digital transformation paved the way for the growth of the digital economy,” Ms. Aldaba said.

The Trade department said in May that the National AI Strategy will help companies with their digital transformation.

The roadmap leans on AI to maintain or enhance many industries’ competitiveness and to encourage foreign investors to open operations in the country, she said.

There are 50 tech startups in the country that have adopted AI, in industries like financial technology, e-commerce, and digital health.

Ms. Aldaba said one area the roadmap focuses on is building a center for AI research through public-private partnerships. It will serve as a hub for scientists and researchers to seek to apply AI to precision agriculture, healthcare, and smart cities, among others.

“Investments in new technology, digitalization, and innovation are also investments in resilience, sustainability, competitiveness, and long-term business growth, which are all necessary as we enter our economic recovery,” she said.

Digital Pilipinas is the country’s largest private sector-led movement that aims to create a tech ecosystem for the Philippines. — Marielle C. Lucenio

BARMM infrastructure budget at P4.9 billion this year — DPWH

March 10, 2022 | 8:25 pm

INFRASTRUCTURE projects in Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) will enjoy budget funding of P4.9 billion this year, the Department of Public Works and Highways (DPWH) said.

The DPWH said in a statement that ongoing projects include civil works for the rehabilitation of 5.29 kilometers (km) of trans-central roads in Lanao Del Sur, as well as 4.71 km of road projects under the Emergency Assistance for Reconstruction and Recovery of Marawi (EARRM), which is financed by the Asian Development Bank.

“Other project components of EARRM (include) the construction of 4.32 kms of new trans-central roads with drainage, three main drainage channels with a total length of 6.21 kms, construction of Rorogagus Bridge and replacement of three other bridges, and slope protection and rehabilitation on Marawi Bito Road and Lasureco Road, are all in the detailed engineering design stage,” it added.

Meanwhile the planned construction of the 2.4-km Malabang viaduct, which is also in Marawi, is undergoing a feasibility study.

Detailed engineering design is ongoing for the 19.8-km Marawi Ring Road. The project is financed by a loan from the Japan International Cooperation Agency (JICA).

The department said that last year, it managed to complete the construction of an 18.97-km road network with the support of a ¥2-billion JICA grant to support the rehabilitation and reconstruction of Marawi City and its surrounding areas.

“Significant developments are also expected with the funding of the construction of Tawi-Tawi Circumferential Road while the remaining portion of Sulu Circumferential Road is ongoing and targeted for completion within this year 2022,” it added.

The department also noted that its officials and BARMM representatives met on March 9 to discuss the progress of infrastructure projects being implemented in the region.

The DPWH said the two parties discussed updates in the rehabilitation of Marawi City, the rehabilitation of Quirino Bridge in Cotabato City, the status of permit requests along national highways by telecommunication companies, and other BARMM projects financed under official development assistance. — Arjay L. Balinbin

SSS rejects claims pensioners burdened by reporting requirement

March 10, 2022 | 8:24 pm

THE Social Security Service (SSS) said on Thursday that its requirement for pensioners report annually their continued receipt of payouts is not burdensome for recipients, contrary to claims made in a House resolution filed by the Bayan Muna party-list.

“We want to remind our Honorable party-list lawmakers that ACOP (Annual Confirmation of Pensioners Program) was implemented in 2004 to ensure the continuous payment of benefits to the rightful pensioners in accordance with the Social Security Law,” SSS Vice-President Fernando F. Nicolas said in an e-mail. “It should not be perceived as a burden to pensioners but a significant measure to safeguard the SSS funds and ensure that rightful recipients will continue to receive their monthly pensions.”

Last week, members of Bayan Muna filed House Resolution No. 2504, which urges the House of Representatives to conduct an investigation into the re-implementation of ACOP by the SSS.

Most pensioners residing in the Philippines are exempt from complying with ACOP, while those receiving total disability benefits, survivorship benefits, and those living overseas must report annually to the SSS via online channels and other methods not requiring face-to-face contacts until March 31, Mr. Nicolas said.

“Since Oct. 30, 2017, we have been conducting various verification procedures to confirm whether they still qualify to receive their monthly pensions,” he added.

He said that the SSS is always looking out for the safety of the pensioners, which is why it adopted safer ways to confirm their continued receipt of pensions that do not require them to visit an SSS office.

Mr. Nicolas urged pensioners to send their ACOP documents through e-mail, to the overseas office nearest them, or via courier mail.

He also said that the SSS may be reached through Microsoft Teams and social media. — Jaspearl Emerald G. Tan

Solons back fuel excise tax suspension bill, call on DBCC to convene

March 10, 2022 | 8:10 pm

Small-gas-station-Baseco-PHILSTAR-FILE-MIHCHAEL-VARCAS — PHILIPPINE STAR/ MICHAEL VARCAS

MARIKINA Rep. Stella Luz A. Quimbo said Thursday that she supports the passage of a bill that would suspend taxes imposed on selected petroleum products together with targeted subsidies to provide relief to low-income households and the transportation sector amid rising oil prices.

“I support House Bill No. 10488, which has been approved on 2^nd Reading in the House of Representatives,” she said in a statement.

“This measure decreases tax rates for gasoline from 10 pesos to 7 pesos for fuels above RON (research octane number) 91, and 4.35 pesos for fuels at RON 91 or below. The bill also removes the 6 pesos additional excise tax on diesel. These rates shall remain for as long as the average Dubai crude oil price (MOPS) is above USD65 per barrel,” said Ms. Quimbo, an economist.

She said the government should act quickly as the oil price hikes exacerbated by the Russia-Ukraine conflict are affecting many sectors, especially the transportation.

“Of course, the first ones who are affected here are those in the transport sector,” Ms. Quimbo said in Filipino. “Because the fare is regulated, the drivers of PUVs (public utility vehicles) can’t raise them. That’s why they’re the ones bearing the burden of the higher price of gasoline and diesel.”

The Philippines imports finished oil products from China, South Korea and Japan, which get crude from Russia, according to Energy Secretary Alfonso G. Cusi.

“Crude oil is used in all products, especially in making them and transporting them to the market. That’s why the cost of all goods will be affected eventually,” Mr. Quimbo said.

She cited a study from the Asian Development Bank (ADB) which showed that a 10% price increase in fuel would result in 200,000 more poor families.

“By reducing tax rates for select oil products, we are able to both provide immediate relief for many Filipinos, especially those belonging to the lower income groups, while keeping inflation in check and still be able to collect significant revenues which can be used for other economic aid and recovery measures,” she said.

“This should be accompanied by targeted subsidies to sectors that continue to be adversely affected by the oil price hike.”

Meanwhile, Deputy Speaker and Bagong Henerasyon Party-list Rep. Bernadette R. Herrera-Dy urged the government’s inter-agency budget committee to meet and draw up suggested action plans for President Rodrigo R. Duterte.

“I am asking the Development Budget Coordination Committee (DBCC) to convene in the next several days so they can firm up their recommendation to President Duterte,” she said in a statement.

“Suspending the excise tax on imported crude and fuel is the call of the Development Budget Coordinating Committee. This is their mandate under the last part of Section 43 of Republic Act 10963, also known as the TRAIN (Tax Reform for Acceleration and Inclusion) Law.”

She cited that under the TRAIN Law, the national government could enforce several response measures against oil price hikes, including providing fuel vouchers, and a 10% discount on transportation fares and rice stock from the National Food Authority. — Jaspearl Emerald G. Tan