Facebook will announce a series of products under the umbrella of “social audio” on Monday, including its take on audio-chat app Clubhouse and a push into podcast discovery and distribution, Recode reported on Sunday.
These plans include an audio version of Rooms, a video-conferencing product Facebook launched a year ago. The Clubhouse-like product will let groups of people listen to and interact with speakers on a virtual “stage,” the report added.
Facebook will also launch a product allowing its users to record brief voice messages and post them in their newsfeeds, and a podcast discovery product that will be connected with Spotify, according to the report, which cited sources.
The announcement will be made on Monday but some products will not show up for a while, the report added.
A Facebook spokeswoman declined to comment. Spotify did not immediately respond to a request for comment on Sunday.
Facebook started public testing of a new application dubbed Hotline earlier this month, where creators can speak and take live questions from an audience.
This Q&A product combines audio with text and video elements and comes as social media platforms experiment with a rush of new live audio features.
The success of the invite-only, year-old app Clubhouse, which has reported 10 million weekly active users, has demonstrated the potential of audio chat services, particularly during the coronavirus disease 2019 (COVID-19) pandemic.
Twitter Inc. has been testing its audio feature Spaces and Facebook is also dabbling with a live audio room offering within its Messenger Rooms. — Reuters
Audio-chat app Clubhouse closed a new Series C round of financing, the company said during its weekly town hall on Sunday, without disclosing the amount raised.
A source familiar with the matter confirmed to Reuters that the new financing would value the company at $4 billion.
The social media app said the new round of financing was led by Andrew Chen of venture capital firm Andreessen Horowitz with major investors like DST Global, Tiger Global, and Elad Gil.
Clubhouse and Andreessen Horowitz did not respond to requests for how much the funding round raised.
The San Francisco-based company, whose app allows people to discuss varied topics in audio chatrooms, has seen its popularity surge after appearances by billionaires Elon Musk and Mark Zuckerberg.
The success of the invite-only, year-old platform, which recently reported 10 million weekly active users, has demonstrated the potential of audio chat services, particularly as people stay inside homes due to the coronavirus disease 2019 (COVID-19) pandemic.
Bloomberg earlier this month said Twitter Inc. was in discussions to buy audio app at a $4 billion valuation. — Elizabeth Culliford/Reuters
SYDNEY — Hundreds of passengers from Australia began arriving in New Zealand airports on Monday after authorities reopened borders, a pandemic milestone that allows quarantine-free travel between the countries for the first time in over a year.
Though most Australian states have allowed quarantine-free visits from New Zealand residents since late last year, New Zealand had enforced isolation for arrivals from its neighbor, citing concerns about sporadic virus outbreaks there.
Television footage showed emotional scenes at the airports with families reuniting and scores of passengers thronging the international departure terminals at Australian airports.
“It is the first time in 400 days that people can travel quarantine-free and we are adding 16 return flights a day to New Zealand, and they are full,” Qantas Chief Executive Alan Joyce told the Australian Broadcasting Corp on Monday.
Qantas will ramp up flights between the countries to about 200 each week, while Air New Zealand said it had quadrupled its flights to 30 on Monday, with its airplanes flying into New Zealand 97% full.
The open border will help drive the economic recovery for both countries and reunite thousands with families and friends, Australia’s Prime Minister Scott Morrison and New Zealand’s Prime Minister Jacinda Ardern said in a joint statement.
“It is truly exciting to start quarantine-free travel with Australia. Be it returning family, friends, or holiday-makers, New Zealand says, ‘Welcome and enjoy yourself,’” Ms. Ardern said.
About 1.5 million Australians visited New Zealand in 2019, the year before the pandemic closed international borders, making up about 40% of all visitors, spending NZ$2.7 billion ($1.93 billion) in the country, official data showed.
More than half a million New Zealand-born people live in Australia, just over 2% of Australia’s population of near 26 million.
Both Australia and New Zealand had largely closed their borders to non-citizens and permanent residents more than a year ago, helping to keep their coronavirus disease 2019 (COVID-19) numbers relatively low compared with several other developed countries.
Other international arrivals into both countries must go through a two-week hotel quarantine at their own expense.
Australia has recorded just over 29,500 virus cases and 910 deaths since the pandemic began, while New Zealand has had just over 2,200 confirmed cases and 26 deaths.
Mr. Morrison and Ms. Ardern warned travelers to prepare for disruptions to travel arrangements at short notice in the event of COVID-19 outbreaks, and said the risks of quarantine-free travel will be under “constant review.”
Both leaders also flagged the possibility of extending quarantine-free travel to other countries in the Pacific region when “it is safe to do so.” — Renju Jose/Reuters
HERstory Continues: Celebrating the Filipina Today and Facing the Challenges Ahead
AdSpark Inc, Globe Telecom’s digital advertising subsidiary, unveils insights on HERoes trailblazing this generation’s women across various aspects of society, in its white paper called “HERstory continues: Celebrating the Filipina Today and Facing the Challenges Ahead.”
Year on year, as the country celebrates Women’s Month, we are encouraged to revisit biases and social norms – have these changed, have we progressed, and how?
The research focuses on the challenges and areas wherein there still seem to be gender disparities such as with leadership roles in business, on how women and men consume content online, conversations around women across various social media platforms, and expectations from women of all ages when it comes to societal responsibilities.
Given these insights, the study leaves its readers to think: are we listening to what women are saying, paying attention to what she is reading, learning, and yearning for? Are we part of her transformation?
Gretchen Largoza, AdSpark President and CEO shared. “We wanted to understand and shed light on how women have been rising above challenges and traditional stereotypes amidst the digital age. Using our brand planning and audience building proprietary tools, we looked into the insights as to where we are as a society in supporting and helping women in this aspect.”
AdSpark generated the report by using its own AdSpark intelligence platform. AdSpark intelligence uses social listening that tracks mentions and comments across the internet; and content consumption which measures what Filipinos are reading and viewing on the internet.
To find out more about the celebrations and challenges that Filipino women are facing ahead, and what we can do to change the conversation, download the full report here: https://adspark.ph/whats-next-filipino-women-day-age/
AdSpark, Inc. is part of the portfolio companies of 917Ventures, the largest corporate incubator in the Philippines wholly-owned by Globe Telecom Inc.
HONG KONG – Hong Kong will suspend flights from India, Pakistan and the Philippines from April 20 for two weeks after the N501Y mutant COVID-19 strain was detected in the Asian financial hub for the first time, authorities said in a statement late on Sunday.
The three countries would be classified as “extremely high risk” after there had been multiple imported cases carrying the strain into Hong Kong in the past 14 days, the government said.
The city reported 30 new coronavirus cases on Sunday, 29 of which were imported, marking the highest daily toll since March 15. Hong Kong has recorded over 11,600 cases in total and 209 deaths.
Hong Kong authorities have been urging residents to get vaccinated for coronavirus with only around 9% of Hong Kong’s 7.5 million residents vaccinated so far.
The government last week widened the city’s vaccine scheme to include those aged between 16 to 29 years old for the first time, as they aim to boost lacklustre demand for inoculations amongst residents.
Airlines impacted by Hong Kong’s ban on travellers from India, Pakistan and the Philippines include carriers such as Cathay Pacific, Hong Kong Airlines, Vistara and Cebu Pacific. — Reuters
The endemic tawilis—loved as deep fried, salted, smoked, or bottled in oil—is facing the possibility of extinction. The scientific community hatched an emergency plan to save the freshwater sardine to protect the livelihood of fishermen and to ensure that future generations will get to savor the fish.
In this B-Side episode, Dr. Ma. Vivian DC. Camacho, station manager of the University of the Philippines–Los Banos (UPLB) Limnological Station, discusses the tawilis and the economics of conservation with BusinessWorld reporter Luz Wendy T. Noble.
TAKEAWAYS
Tawilis is endangered but it still can be saved.
Tawilis, a tiny tasty fish that fits in your hand, can be found only in Taal Lake. It is the only sardine known to exist solely in freshwater.
Its declining population is due to its habitat and fishing. To stave off its extinction, UPLB is exploring ex situ conservation to see if tawilis can thrive off-site. In addition, Ms. Camacho’s group is developing studies related to culturing other endemic fishes such as biya and ayungin.
Conservation funding often takes a back seat.
Researchers in the conservation field face three major challenges, according to Ms. Camacho: limited research funds and the lack of adequate facilities; insufficient awareness and information dissemination for the public; and the volume of permit requirements in the Philippines. This, despite the country being named a biodiversity hotspot due to the rising number of threatened species.
The scientific community’s need for funding, Ms. Camacho said, is often overshadowed by the country’s socioeconomic concerns (and now, the pandemic crisis). She hopes these gaps can be addressed as conservation is also a pressing concern.
“There is really an urgent need to intensify our conservation efforts for long-term sustainability, to sustain livelihood and for economic gains, and foremost, for our future generations,” she said.
No, we don’t need to boycott the tawilis to save it. Fishermen need to make a living too.
A total ban on catching and consuming tawilis isn’t imperative, Ms. Camacho said, although closed fishing season should be respected.
“It’s always tricky to balance protecting or conserving the species and the economic part of it,” she said. “Another way, as consumers, is to protect the environment where they thrive. Think of ways not to throw pollutants at the lake.”
Philippine business leaders called on the private sector to sustain the push for more economic recovery programs to address worsening economic slump and help small and medium entrepreneurs digitize their business.
In a recent virtual forum organized by the Stratbase Albert del Rosario Institute (ADRi) on “The private sector as a reliable partner to government in economic recovery,” Ayala Corp. Chairman Jaime Augusto Zobel de Ayala said, “The private sector I believe acted swiftly, dug deep and used our balance sheets in order to protect our employees’ financial and physical well-being.”
Mr. Zobel added, “We pivoted our businesses to stay afloat so we could extend payrolls and preserve jobs, knowing that our employees depended on us to feed their families afford other expenses. We supported our customers so they too could stay afloat and turn and in turn extend similar help to their own set of customers.”
“If we will act in unison, work together, join forces and focus on some key areas where we can all make a difference, there’s absolutely no doubt in my mind that the private sector can be a massive generator of goodwill in our country and a solution to many of our problems,” Mr. Zobel said.
Philippine Chamber of Commerce Inc. (PCCI) President Amb. Benedicto Yujuico said, “Our goal in putting up the Innovation Center is to contribute to the national government’s goal of ending poverty by 2040 and we can do this by teaching and training our youth on technology so that we will be able to capitalize on the competitive advantage of a young and educated population.”
“We need to get our young people educated and trained in technology. We need to get our MSMEs to embrace technology, as well as to attain sustainability of their business. Everyone needs to innovate,” Mr. Yujuico said.
For his part, Chairman of Makati Business Club Edgar Chua said, “If our youth are not properly equipped and nourished, the sweet spot in reality will be a sore spot as they will not be able to realize their full potential and support the country’s development plan.”
Mr. Chua added that “we need to ensure that budget for education goes to salaries of our teachers, we need to provide last mile schools, and we need to move to a digital transformation.”
Stratbase ADRi President Dindo Manhit, in his opening statement, said that the private sector is key in creating a more sustainable and inclusive economic recovery through 8 strategic initiatives:
Address inequality and ensure livelihood by creating jobs;
Reduce the digital divide thru digital acceleration;
Address climate change and reduce greenhouse gas emissions;
Help strengthen health system;
Push for public private collaboration driven by public interest;
Focus and advocate for stakeholder capitalism;
Create access to opportunity: quality education and social protection for all; and
Demand transparency and accountability in governance by encouraging an entrepreneurial state and smart local governments.
Stratbase ADRi Chairman Amb. Albert del Rosario said, “We now have an opportunity to overhaul the flawed structures of government bureaucracies to become a digitally revitalized ecosystem of efficient processes and well-managed resources.”
“The governments of neighboring economies and other developing nations have long seen this and have been investing heavily in building strategic digital infrastructure to harness the benefits of a digitally enabled, and connected population.”
“This is a realm wherein nimbleness, innovation, expertise, and mobility of resources is needed, attributes that are native to the developmental spirit of the private sector,” Mr. del Rosario said.
Motorists traveling around Ilocos Sur can save their vehicles from thirst this season as the newly-opened Caltex station in Candon City is now geared up to provide quality fuels.
Posting strong network growth in the first quarter of 2021, Caltex, marketed by Chevron Philippines Inc. (CPI), warmly embraces the dry season by boosting its retail network with eight newly-opened service stations and two Caltex Havoline autoPro workshop openings in key provinces.
Bolstering its network of nearly 650 service stations and 75 Caltex HavolineautoProand bikePro workshops at present, Caltex seeks to cater to the fuel and car maintenance needs of both local and transient motorists nationwide this season.
Travel better by tanking up at more Caltex stations
Motorists heading up north can stop for refueling at the recently inaugurated service station in Brgy. Paras,Candon City, Ilocos Sur. Situated along the southbound lane of the MacArthur highway, the service station is now ready to power motorists coming to and from Metro Manila and other provinces. Candon City is regarded as the “Tobacco Capital of the Philippines” and is also notable for its C-shape landmass.
More motorists flock at the Caltex station in Brgy. San Manuel, Puerto Princesa to get their tanks filled as they embark on a journey this season.
Another Caltex station opened in San Mateo, Isabela, ready to perk up the daily drives of motorists in the area. This service station is strategically located along the country’s principal transport backbone, Maharlika Highway, which connects Luzon, Visayas, and Mindanao. San Mateo is also an agroecological area known as the largest producer of mung beans or munggo in the country.
The second Caltex service station in Naguilian, La Union also rose in Brgy. Ortiz, the focal hub of the town’s commercial activities. This station caters to motorists going to and from Baguio City. Naguilian is an agricultural town that is home to the original Basi, a native fermented beverage made from sugarcane.
In South Luzon, Caltex recently opened two stations inPuloDiezmo Road, Cabuyao, and Brgy. Tinga, Batangas City to serve quality fuels to private vehicles and commercial fleets travelling around the provinces of Laguna and Batangas. Cabuyao is often called the “Golden Bell City” while the cove-shaped Batangas City is dubbed as the “Industrial Port City of CALABARZON.” The two areas are home to historical landmarks, beaches, and gastronomic cuisines.
Locals and tourists basking in the splendor of the tropical paradise of Palawan can also fill up their vehicle tanks at the newly-opened Caltex stations to power a blissful escapade around the island. The three Caltex stations are situated in South Road, Brgy. Bataraza, Puerto Princesa; South Road, Poblacion, Rio Tuba, and North Road, Brgy. San Manuel, Puerto Princesa. Motorists can also opt to visit the commercial stalls around the roadside stations for refreshments. Palawan takes pride in its pristine beaches and coastlines, picturesque cave formations, and prized delicacies.
The five Caltex stations deliver the premium Euro 4 compliant fuel Caltex with Techron to guarantee motorists higher vehicle performance, cleaner engines, and lower emissions. Caltex also maintains strict health protocols and offers cashless payment options to ensure safer drives for motorists and to further the country’s recovery.
Conquer longer roads with more maintenance hubs
Aside from its service station openings, two new Caltex HavolineautoProworkshops were also opened in Luzon and Mindanao. Motorists in Ilocos Norte needing a vehicle tune-up can make a pit stop at the newly-opened Northbound Auto Care site located at Brgy. 2, F. Julian St., Pila Road, Laoag City. Open on Mondays to Saturdays from 8 a.m. to 5 p.m., this autoPro workshop is ready to provide quality Caltex lubricant products and services, such as maintenance checks and car repairs.
The second recently-opened Caltex Havoline autoPro workshop stands along Diosdado Macapagal Highway, Diversion Road, Ma-a, Davao City. On top of its quality automotive products, this one-stop vehicle maintenance workshop has quick service bays for oil and fluid change, ancillary bays for minor repairs, and wash bays for car cleaning. It operates from 8 a.m. to 6 p.m. and is open from Mondays to Saturdays.
The Caltex Havoline autoPro workshop in Ma-a, Davao City is ready to optimize the performance of vehicles for smoother travel around the Davao region.
Motorists and gearheads alike are guaranteed the best possible experience the moment they drive in at the Caltex Havoline autoPro and bikePro workshops as these sites have quality Caltex lubricant products, accommodating frontline staff, well-trained mechanics, and modern facilities that can make them feel secure. The two workshops cater to cars and motorcycles, respectively.
“Not only can motorists enjoy a wonderful, uninterrupted ride with our top-tier fuels and lubricants, but also experience a high level of customer service, less waiting time for gassing up with more efficient digital payment options, and exciting rewards. Caltex continues to offer these services to bring a safer and next-level travel experience for motorists nationwide. We also remain committed to expanding our network in the country’s remote regions and in urban areas where commerce thrives to help buoy up the Philippine economy. Sa Caltex, tuloy-tuloy ang biyahe,” CPI Country Chairman Billy Liu said.
THE National Government’s debt service bill jumped by 42.67% to P253.1 billion in the first two months of the year, the Bureau of the Treasury (BTr) reported.
Latest BTr data showed debt service payments in those two months climbed from P177.4 billion a year ago, after the state repaid P33.3 billion in February and P219.8 billion in January.
The bulk or 69% of the total was principal payments, while the rest were used to pay off interest.
Amortization payments totaled P174.9 billion in the two-month period, up 64.7% from a year ago’s P106.2 billion. In January alone, the government made P172.8 billion in amortization payments, but only P2.1 billion in February.
Broken down, P125 billion of principal payments were made to foreign creditors, while P49.9 billion were used to settle some of its maturing local debt.
Interest payments, meanwhile, climbed 9.8% to P78.2 billion during the two-month period from the P71.2 billion recorded a year ago. The government made P47 billion in interest payments in January, and P31.2 billion in February.
For the first two months of 2020, interest paid to external lenders reached P26.8 billion, and P51.4 billion to local lenders.
Interest payments on local debt consisted of P34.9 billion in Treasury bonds, P12.3 billion in retail Treasury bonds and P4.2 billion in Treasury bills.
The two-month debt service bill accounted for 14% of the government’s P1.79-trillion debt repayment plan this year.
The government runs on a budget deficit as it spends more than the revenue it generates to fund programs, such as infrastructure projects, that will drive growth.
It borrows from foreign and local sources to help fund its budget deficit. It aims to raise P3 trillion this year to plug the fiscal gap seen to hit 8.9% of gross domestic product. — B.M. Laforga
TRUCKS load rocks and soil containing nickel-ore minerals onto a barge in Sta. Cruz, Zambales, Feb. 8, 2017. — REUTERS
By Kyle Aristophere T. Atienza, Reporter
THE Philippines is expecting about $4 billion in capital investments from three major mining projects, after President Rodrigo R. Duterte lifted last week the nine-year moratorium on new mineral agreements.
If the projects of Sagittarius Mines, Inc., KingKing Mining Corp., and Silangan Mindanao Mining Co., Inc. “are any indication, we are looking at over $4 billion in capital expenditure,” Presidential Spokesperson Herminio “Harry” L. Roque, Jr. told BusinessWorld in a Viber message.
Mr. Duterte on April 14 signed Executive Order (EO) No. 130, which allows the government to enter into new mineral agreements and review existing mining deals for possible renegotiation.
Mr. Roque said new mining projects are also expected to generate P40 billion in local taxes and P20 billion worth of social development projects. Indigenous groups are also expected to benefit with around P15 billion in royalties expected to be collected from the major mining projects.
“These, however, will not come immediately, since this will be spread over the life of the mining project,” he said.
Mr. Roque said these mining projects would generate revenues to support the government’s key infrastructure programs as well as create more livelihood opportunities in the countryside.
Then-President Benigno S. Aquino III in 2012 prohibited the grant of new mining deals in several protected areas, while awaiting the passage of a law that would increase the government’s share in mining revenues.
Mr. Roque said the President lifted the moratorium as Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion Act, has already doubled the excise tax on minerals from 2% to 4%.
The Palace official said the new order was also made after the Department of Environment and Natural Resources (DENR) “put in place the necessary rules, regulations, and policies to ensure that mining in the country is safe for the people and the environment.”
Mr. Roque said the DENR, which has been criticized by the civil society for supposedly colluding with mining interests, already conducted a thorough review of the regulatory framework for mining.
In February 2017, Regina L. Lopez, who was Environment secretary at that time, ordered the closure of more than 20 metallic mines in the country over alleged violations of local environmental laws. Three months after, her appointment as DENR chief was rejected by the Commission on Appointments.
Mr. Roque last year said illegal mining and logging activities contributed to the massive flooding in Cagayan Valley in the Northern Philippines.
“As per the DENR, there are currently no legal large-scale mining operations happening in Isabela and Cagayan at present and the flooding that happened in those areas, the DENR added, may be attributed to other man-made causes like illegal logging,” Mr. Roque said.
Environmental groups earlier said the new order would only result in more environmental violations and enable mining firms to evade accountability.
The Philippines’ GDP slumped by a record 9.6% in 2020, as economic activity was restricted by lockdown measures aimed at containing the coronavirus disease 2019 (COVID-19) outbreak. — PHILIPPINE STAR/ MICHAEL VARCAS
THE Philippines still has fiscal space which it could utilize to support its recovery from the coronavirus-induced crisis, the International Monetary Fund (IMF) said.
“The IMF staff advises that fiscal policy should ‘continue doing its part this year.’ The Philippines still has some fiscal space and can and should maintain its fiscal support to recovery,” IMF Representative to the Philippines Yongzheng Yang said in a statement.
Based on the IMF’s COVID-19 policy tracker as of April 1, the Philippines’ two fiscal stimulus packages under Republic Act 11469 and 11494 (Bayanihan I and II)represented around 2.9% of 2020 gross domestic product (GDP), while the government allocated funds for credit guarantees and standby financing amounting to around 0.8% of GDP.
The Philippines’ GDP slumped by a record 9.6% in 2020, as economic activity was restricted by lockdown measures aimed at containing the coronavirus disease 2019 (COVID-19) outbreak.
The IMF tracker showed other economies in Southeast Asia such as Thailand (14.9%) and Malaysia (more than 6.3%) had bigger budgets for fiscal stimulus.
This year, the Philippines’ P4.5-trillion national budget is about 21.8% of the country’s GDP.
House leaders are pushing for a third stimulus package worth P420 billion, but lacks support from the government’s economic managers.
IMF’s Mr. Yang said the resurgence of COVID-19 infections and its impact on recovery amplify the need to maintain fiscal support.
“Priority for this support should be given to the healthcare sector, including beefing up hospital capacity, accelerating vaccinations, and strengthening containment measures such as virus tracing and testing,” he said.
The Health department reported 10,098 new infections on Sunday, bringing the number of active cases to 141,089.
The Washington-based multilateral lender upgraded its Philippines GDP growth forecastto 6.9% from 6.6% previously, mainly due to base effects as the country was the hardest hit in the region last year. Mr. Yang said their forecast is clouded with “substantial uncertainty” due to the rising infections in the country.
Economic managers are currently reviewing the 6.5-7.5% growth target for the year, after renewed lockdown measures in Metro Manila and nearby provinces are expected to shave off 0.8 percentage point from the full-year print.
“It is important to continue providing targeted support to vulnerable households and struggling businesses, especially MSMEs (micro, small and medium enterprises), which have been hit hard and will be key to recovery in employment and growth,” Mr. Yang said.
The IMF has warned Asia-Pacific economies will continue to bear the brunt of the pandemic, specifically in “contact-intensive” industries that will continue to be hampered by the infection surge. It said it is also unlikely that many jobs lost during the pandemic will return, as companies accelerated digitalization and automation initiatives.
“Continued push for infrastructure investment would also be important, with priority given to projects that are shovel-ready and job-intensive and to those that will improve digital infrastructure to meet the need for work- and learn-from-home and growing digital services more generally,” Mr. Yang said. — L.W.T.Noble
The government agencies’ usage of cash allocations slowed in the first quarter of 2021. — PHILIPPINE STAR/ MICHAEL VARCAS
THE rate at which government agencies use their cash allocations slipped in the first quarter, which an expert said may reflect the slow rollout of coronavirus vaccines and pandemic relief measures.
Latest data from the Department of Budget and Management (DBM) showed state offices, local government units and government-run firms used P788.8 billion out of the P810.7 billion in notice of cash allocations (NCAs) released to them between January and March. This left P21.8 billion worth of unused NCAs.
This resulted in a lower cash utilization rate of 97% in the first quarter, compared with the 99% in the first three months of 2020.
NCA refers to the disbursement authority issued by the DBM to state agencies that allows the latter to withdraw funds from the Treasury to cover expenditures for their programs and projects.
Line departments used 97% or P522.7 billion of the P536.2-billion NCAs issued to them in the first quarter.
“We need to understand that lower or declining NCA utilization rate indicates a slow pace of line agencies to disburse in a timely manner their allocated funds to implement their initiatives, programs, and projects. These disbursements are noted up to the last working day of the period covered,” Asian Institute of Management economist John Paolo R. Rivera said on Saturday.
“In the context of our pandemic situation, potential but may not be ultimate, reason for this, in my opinion, is the relatively slower disbursement of funds towards pandemic response such as vaccine acquisition and release of succeeding rounds of social amelioration,” he added.
Mr. Rivera said the government should work to ramp up spending. He noted slower state spending and subsequent delay in rollout of projects could have an impact on the first-quarter gross domestic product (GDP).
“Partial response does not maximize the accelerator effect on the economy. Hence, the economy may not also reap the benefits of programs in a timely manner. Timeliness is very crucial especially as we are racing towards economic recovery,” he said.
Government spending is one of the major growth drivers of the Philippine economy, accounting for around 25% of the overall economic output.
Official data on first-quarter GDP will be released on May 10.
Economic managers are currently reviewing the 6.5-7.5% growth target for the year, after the reimposition of strict lockdown measures in the capital region and adjacent provinces is expected to dent the full-year print by 0.8 percentage point.
The DBM has released 78% or P3.5 trillion of this year’s P4.5-trillion spending plan as of end-March. — Beatrice M. Laforga
