Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 7137

State should let local governments import vaccines — senator

A SENATOR has filed a resolution asking the government to allow local governments and the private sector to order coronavirus vaccines.

“Allowing the local government units (LGUs) and the private sector to procure their own vaccines will prevent the spread of the disease and hasten the efforts to further open up the economy, which in effect will restore and create more jobs for the people,” Senator Ralph G. Recto said in the resolution.

One condition is for the vaccines to have been authorized by the local Food and Drug Administration (FDA) for emergency use.

President Rodrigo R. Duterte locked down the entire Luzon island in mid-March, suspending work, classes and private transportation to contain the pandemic. The lockdown in most parts of the country had since been eased.

The Philippines last week approved the emergency use of Pfizer, Inc. and BioNTech’s coronavirus vaccine, which has a 95% efficacy rate.

China’s Sinovac Biotech Ltd., British drug maker AstraZeneca, and Russia’s Sputnik V vaccines also have pending applications.

Some local governments and the private sector have committed to fund and order vaccines as part of the state’s immunization program.

The government seeks to order 148 million doses this year and is targeting to inoculate at least 50 million Filipinos.

Allowing local governments and companies to import vaccines directly would quicken the order process and ease the burden on the National Government, Mr. Recto said. The government could also focus on priority and vulnerable sectors as well as the poor.

Also on Wednesday, the government said it would assess coronavirus infections during the holiday season before easing quarantine restrictions at the end of the month.

“When our medical advisers come to a point where they can comfortably say it will not cause a tremendous risk to the general population, then restrictions on age will be slowly eased as well,” Vivencio B. Dizon, deputy chief enforcer of the government’s anti-coronavirus efforts, told an online news briefing.

Trade Secretary Ramon M. Lopez on Tuesday said he might propose to allow Filipinos as young as 10 years to go to malls to boost consumer spending.

Mr. Dizon said the government is trying to balance public health and the effects of a stricter lockdown on the economy. “We always consider the effects of community quarantine restrictions on our economy.”

Under the rules, only those aged 15 to 65 years may stay outdoors. Scientists are investigating whether children are more susceptible to the new coronavirus strain spreading rapidly in Britain, according to BBC News. — Charmaine A. Tadalan and Kyle Aristophere T. Atienza

House lawmakers may start Charter change debates by February

CONGRESSMEN could start debates on proposed changes to the 1987 Constitution next month, according to the head of the House of Representatives committee on constitutional amendments.

“We still have one to two hearings in the committee and we will come up with the committee report, which will exclusively deal with the economic provisions,” Party-list Rep. Alfredo A. Garbin, Jr. told a news briefing on Wednesday.

Lawmakers could discuss the changes in plenary as early as the first week of February, he added. His committee will continue hearings on the matter on Tuesday.

Speaker Lord Allan Jay Q. Velasco wants to ease foreign ownership restrictions in the Charter to boost foreign direct investments.

Some lawmakers want to insert the clause “unless otherwise provided by law” in parts of the Constitution that limit foreign ownership in certain Philippine industries. This will allow Congress to pass a law later relaxing ownership limits.

Mr. Garbin said the Charter must be amended before general elections next year.

“It is the right time,” he said of Charter change, rejecting calls for the government to focus on its pandemic response instead. “We want to send a signal that we are now open and that the restrictive policies will be lifted.” — Gillian M. Cortez

Nationwide round-up (01/20/21)

Bill filed to institutionalize agreement limiting police, military presence inside UP campuses nationwide

A MEASURE that will institutionalize the 1989 agreement between the University of the Philippines (UP) and the Department of National Defense (DND) that limits military and police presence in UP campuses nationwide has been filed in the Senate.

Bill No. 2002 will amend Republic Act No. 9500, the University of the Philippines Charter of 2008, to prevent the entry of security forces in the facilities of the country’s biggest state-run academic institution without prior authorization from the school administration.

“The UP-DND accord is not a ‘Do not enter’ sign that bars law enforcement from entering the campus. It is not a wall which obstructs justice or deters the solution or prevention of crime,” the explanatory note of the bill read.

“The proposed measure ensures that the procedural due process of UP students, staff and faculty are protected.”

Members of the Armed Forces of the Philippines (AFP), Philippine National Police (PNP) and other law enforcers will also be banned from interfering in peaceful protests of individuals or groups within UP campuses.

Administration officials, meanwhile, defended the unilateral cancelation of the 1989 deal while the President’s spokesperson, a UP alumnus, offered to facilitate a dialogue between the parties.

Mr. Lorenzana, in a streamed press conference on Wednesday, insisted that the scrapping of the deal is intended to address the communist insurgency.

Presidential Spokesperson Harry L. Roque, Jr., in a separate interview, said mutuality is not a requirement to abrogate the over three-decade old pact because it is an “unusual contract” or  “extraordinary contract” between two parties.

Nonetheless, Mr. Roque said he is ready to mediate talks between the defense chief and UP officials.

The alumni of Sandigan para sa Mag-aaral at Sambayan (SAMASA) and Nagkaisang Tugon (Tugon), rival political parties in the university in the 1980s, have added their joint voices in condemning what they called as “curtailment” of academic freedom.

“DND’s unilateral termination of the 1989 Agreement which is not only a barefaced betrayal of its commitments to UP, but also an assault in broad daylight on the academic freedom and institutional autonomy that are guaranteed by Congress through its charter,” they said.

Among the signatories are Senator Francis N. Pangilinan, former UP University Student Council Chair, former Cong. Teddy B. Baguilat, Jr., former Cong. Ibarra Gutierrez III, and DLSU School of Law Dean

Virgilio R. de Los Reyes. — Charmaine A. Tadalan and Kyle Aristophere T. Atienza

Group files complaint vs BSP execs over national ID system

AN anti-corruption group on Wednesday filed a complaint before the Ombudsman against ranking officials of the Bangko Sentral ng Pilipinas (BSP) for alleged failure to undertake a bidding process for raw materials that will be used in the national ID system.

The Stop Corruption Organization of the Philippines, Inc., (SCOPI) said Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno, BSP-Security Plant Complex (SPC) Bids and Awards Committee Chair Prudence Angelita A. Kasala, and other BSP officials did not undergo “competitive bidding” for the procurement of raw materials relating to the rollout of the Philippine Identification (Phil ID) system.

The complaint, a copy of which was sent to the media, was filed by SCOPI Chairman Ricardo D. Fulgencio IV on Wednesday.

The complaint also cited that BSP specified a brand in its Technical Specifications and Terms of Reference, which is prohibited under procurement laws.

“(R)espondents’ preference to Kinegram deprived other Phil ID suppliers of the opportunity to bid for the project and robbed the government of getting the most advantageous terms for the supply of such raw materials.  Clearly this is a corrupt practice of public officers,” the complaint read.

The BSP has yet to issue a statement on the complaint as of this writing. — Gillian M. Cortez

Comelec proposes inter-agency group to address cyber interference threats in 2022 national, local polls

THE Commission on Elections (Comelec) on Wednesday proposed the creation of an inter-agency task force (IATF) to help counter cyber-related interference during the national and local elections in 2022.

“It is recommended that some sort of inter-agency election integrity task force be established to assist and perhaps advise the Comelec in dealing with cyber-related interference in the electoral process,” Comelec Spokesperson James B. Jimenez said in a Senate hearing.

Mr. Jimenez is speaking before the committee on electoral reforms and people’s participation, which was tackling Senate Resolution No. 542.

The resolution proposed that Comelec and the Department of Information and Communications Technology (DICT) set up a tool to detect and repel potential foreign interference.

Mr. Jimenez said the commission has met with representatives of social media platforms to address disinformation on their sites.

He also proposed the passage of a measure requiring political advertisers to adhere to a set of integrity standards and to creating an archive for all advertisements that will be accessible to the public.

DICT Assistant Secretary Emmanuel Rey R. Caintic said the department has the tools to detect purveyors of fake news and manipulation of the election, but noted they have no investigative power.

“We have the necessary tools but we would need that proper mandate to do an investigation because the cybersecurity bureau does not have a law enforcement jurisdiction,” he told senators. — Charmaine A. Tadalan

Justice dep’t takes steps to address ‘rash killings’ of lawyers

THE Department of Justice (DoJ) said it will be closely monitoring the cases involving the killing of lawyers in the Philippines and will look into extending better protection to the legal community.

“The DoJ will come up with an inventory of cases under investigation by the NBI (National Bureau of Investigation), under preliminary investigation by the prosecution service, and undergoing trial in court, for the purpose of monitoring their progress very closely,” he told reporters in a Viber message.

“Other issues, such as providing greater protection to law practitioners, prosecutors, and judges, will be tackled in subsequent joint activities with the IBP,” he added.

The Integrated Bar of the Philippines (IBP) recently held a virtual meeting with government officials to discuss lawyer security and justice, the group said in a Facebook post.

Mr. Guevarra said the meeting tackled issues on the “rash killings of members of the legal community.”

The IBP last month sent a letter to President Rodrigo R. Duterte and Vice President Maria Leonor G. Robredo seeking for a “more coordinated, effective, and sustainable solution to the pressing problem.”

More than 50 lawyers have been killed under the Duterte administration, the group noted in their letter. — Vann Marlo M. Villegas

DSWD reports over 430K families benefit from Bayanihan II cash aid

MORE than 430,000 beneficiaries have received financial assistance through the emergency subsidy program (ESP), the Department of Social Welfare and Development (DSWD) reported on Wednesday.

The ESP is a cash aid program under Republic Act No. 11494 or the Bayanihan to Recover as One Act (Bayanihan II).

Citing the agency’s latest report as of January 19, Social Welfare Undersecretary Rene Glen O. Paje said they have distributed about P2.7 billion to 436,756 beneficiaries.

The beneficiaries included more than 71,000 Filipinos living under granular lockdown as well as 365,032 households that are not under the regular cash aid program called 4Ps, he said.

Mr. Paje also said the agency is currently distributing P15,000 each to displaced families through the Livelihood Assistance Grant (LAG) program.

“The grant can be used by beneficiaries who are looking for jobs or who want to establish small enterprises,” he said in Filipino.

Meanwhile, the Department of Interior and Local Government (DILG) has filed charges against more than 80 local officials allegedly involved in anomalies in the distribution of funds under the social amelioration program, another cash aid scheme in response to the coronavirus pandemic.

The Office of the Ombudsman has already ordered the preventive suspension of 89 barangay captains for six months. — Kyle Aristophere T. Atienza

Court orders arrest of Advincula for perjury in alleged ouster plot

A Manila court ordered the arrest of Peter Joemel Advincula, the man who appeared in videos linking the President’s family to illegal drugs, for perjury over his tagging of lawyers in the alleged plot to oust President Rodrigo R. Duterte.

In an order dated Jan. 18, the Metropolitan Trial Court Branch 17 issued the arrest warrant for Mr. Advincula and set the bail at P18,000.

In a resolution dated Feb. 17, 2020, the Department of Justice (DoJ) recommended charging Mr. Advincula for perjury based on a complaint filed by Free Legal Assistance Group lawyers Jose Manuel I. Diokno, Lorenzo R. Tañada III, and Theodore O. Te in September 2019.

The lawyers were also cleared by prosecutors from the complaint on conspiracy to commit sedition in February last year.

Mr. Advincula, who served both as a witness and respondent in the sedition complaint, was among the 11 indicted for conspiracy to commit sedition by the prosecutors.

The prosecutors said the allegation on participation in planning the ouster in a campus on March 4, 2019 “is an outright lie and perjurious,” noting that Mr. Diokno and Mr. Tañada were attending a forum for senatorial candidates that day.

Prosecutors also said the complaint of Mr. Te is valid as he only met Mr. Advincula after he received a request for his legal assistance.

The prosecutors also dismissed the perjury complaint against P/Col. Arnold Thomas C. Ibay, saying he was “clear and categorical” when he submitted records to the Department of Justice for investigation based on documentary evidence and claims of Mr. Advincula. — Vann Marlo M. Villegas

Regional Updates (01/20/21)

Tugade counts on new Bicol airport to help in economic recovery

TRANSPORTATION Secretary Arthur P. Tugade is counting on the new Bicol International Airport, which is now 72.2% complete, to help boost the economy battered by the coronavirus pandemic. “It can’t be denied that the aviation sector has been one of the hardest hit by the pandemic. That’s why it is important that we finish the airport at the soonest possible time, as this will absolutely give the economy a boost. Gusto ko matapos ‘yan (I want the project finished) within the year,” Mr. Tugade said in a statement on Wednesday. The department said the airport is expected to serve two million passengers annually. The project covers the construction of landside facilities, a passenger terminal building, the extension of the runway and taxiway, as well as drainage and other site development works. The Tourism department and the Transportation department signed a memorandum of agreement in January last year to intensify infrastructure projects that will support the development and promotion of tourism circuits across the country. Both departments identified airport development programs as priorities in support of tourism. — Arjay L. Balinbin

Cotabato Airport upgrade to benefit Bangsamoro image, economy — Transport minister

THE runway improvement project for the Cotabato Airport in Maguindanao, the main gateway to the Bangsamoro region, broke ground this week and is expected to be completed in 15 months. Transport and Communications Minister Dickson P. Hermoso of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) said it is crucial to improve the airport, also referred to as Awang Airport, as it serves as a key access point for both people and cargo.  “The airports and seaports are gateways, at dyan nagsisimula ang impression ng mga taong bumibisita sa (it gives the first impression on) BARMM. Apart from the impression, the airport itself serves as the platform for everyone — where you move people or transport goods,” Mr. Hermoso, a former military officer and assistant secretary of the peace office, said during Monday’s groundbreaking ceremony. The P124.4-million project funded under the national budget will be implemented by the Philippine Army’s Engineer Brigade. Lt. Gen. Corleto S. Vinluan, Jr., commander of the Western Mindanao Command that covers the BARMM, said the project will improve landing safety as well as boost economic activities. “I believe that once this airport is improved, it will create wider and speedy connections between provinces and cities, and will automatically stimulate vibrant economic activities… especially when the pandemic is over,” Mr. Vinluan said. — MSJ

Lanao del Norte rep proposes longer Bangsamoro transition period

A lawmaker on Wednesday proposed that next year’s scheduled elections in the Bangsamoro region be moved to 2028, longer than earlier proposals to postpone it to 2025. In a hearing on Wednesday, Lanao Del Norte 1st District Representative Mohamad Khalid Dimaporo said the longer transition period is needed to fully establish policies and programs in the new region. “I filed to move the elections not to 2025 but 2028,” he said in a joint hearing held by committees on electoral reforms, Muslim affairs, and peace.

Mr. Dimaporo noted that the transition period of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), which started two years ago, has been affected by the coronavirus pandemic. “We will be changing (the national) administration in the 2022 elections and there are components of the Comprehensive Agreement on Bangsamoro that may not be adapted and still need to be negotiated so we can fulfill the peace process. I would like to give the next administration some breathing room,” he said. — Gillian M. Cortez

New COVID wave seen putting construction-led revival at risk

A RESURGENCE of COVID-19 (coronavirus disease 2019) cases will pose risks to any construction-led economic revival because of the prospect of fund diversions away from the infrastructure program, Fitch Solutions Country Risk & Industry Research said.

Fitch Solutions raised its growth forecast for the construction industry to 13% this year from the earlier projection of 9.5%, it said in a note dated Jan. 19.

The government’s record budget of P4.5 trillion for 2021 and its focus on infrastructure projects are the main factors behind its view of double-digit construction growth, Fitch Solutions said.

It noted that the Department of Public Works and Highways (DPWH) received the highest year-on-year increase of any agency. Its budget rose 61.3% to P695.7 billion this year. The Transportation department’s allocation rose 4.4% to P88 billion.

“Given this budget allocation, we expect sectors such as roads & bridges, water infrastructure, and rail to contribute the most to the construction’s industry overall growth in 2021,” it said.

However, Fitch Solutions warned that the government could divert resources to pandemic containment if a new wave of COVID-19 should emerge, while new lockdowns are likely to disrupt construction works.

“We see some downside risk to these investment plans from further COVID-19 outbreaks in 2021, which could divert funding towards the pandemic response, as happened in 2020, and disrupt project developments due to lockdown measures. Given that the Philippines has experienced the second-highest fatality rate in Southeast Asia, after Indonesia, and the discovery of more contagious strains in the UK and South Africa, the Philippines remains vulnerable to another surge in COVID-19 cases,” the note read.

Projected increases in spending make public investment a key driver of the recovery, especially roads and railways, Fitch Solutions said.

Last year, the government reduced the budget of several government agencies, paring funding for projects and programs unlikely to be completed within 2020 because of the pandemic. The DPWH had its allocation reduced by 22% to P455 billion while the Transportation department’s funding was reduced by 17% to P82.912 billion.

Next year, Fitch Solutions flagged the risks posed by the national elections in May.

“On the one hand, it will mean that there will be a political willingness to complete projects under construction before the end of the current government’s term,” it said.

“On the other hand, since no (presidential) re-election is allowed in the Philippines, major projects currently at planning stage will be at risk of being reviewed under a new incoming administration, as has happened on repeated occasions with previous administrations,” it added. — Beatrice M. Laforga

Gov’t agencies’ cash usage falls to 95% in 2020

CASH UTILIZATION by government agencies fell to 95% in 2020 from 97% a year earlier, according to the Department of Budget and Management (DBM).

Utilization fell after government projects were disrupted by the pandemic, with the so-called “catch-up plan” implemented towards the end of the year not able to bring spending rates, as measured by the use of notices of cash allocation (NCAs), to 2019 levels.

The DBM said that the National Government’s NCA utilization was P3.648 trillion out of P3.853 trillion released in that period. In 2019, it used P3.234 trillion of P3.338 trillion.

An NCA is an authorization issued by the DBM to agencies informing them of the funds available for disbursement.

In the fourth quarter, government agencies used P1.093 trillion worth of NCAs for a 97% utilization rate. This utilization rate is identical to the performance in the fourth quarter of 2019, and higher than the 96% usage rate in the third quarter of 2020.

The fourth quarter NCA utilization rate means P204.789 billion worth of NCAs was not used by government agencies at the end of 2020.

Usage rates fell towards the second half of 2020 after lockdown restrictions hampered government projects and programs.

President Rodrigo R. Duterte signed Republic Act No. 11520 on Dec. 29 extending the validity of the 2020 budget for another year, allowing the government until Dec. 31, 2021 to use the funds that were not spent last year.

Separately, the DBM issued Local Budget Circular No. 133 on Jan. 18, a copy of which was published late Tuesday, allotting P350 million for the Local Government Support Fund – Assistance to Cities.

It ordered cities that plan to seek financial support from the fund to prioritize spending on construction and rehabilitation of green open spaces and infrastructure for active mobility, including parks, botanical gardens, bicycle lanes and walkways.

Local governments were instructed to submit their requests by June 30. — Beatrice M. Laforga

Duterte approves BIR plan to tap P39-M US grant for modernization

PRESIDENT Rodrigo R. Duterte approved the request of the Department of Finance (DoF) to negotiate with the US government the terms of a grant worth $809,450 (P39 million) that will support the modernization program of the Bureau of Internal Revenue (BIR).

In a statement Wednesday, the DoF said it is planning to tap the United States Trade and Development Agency (USTDA) for the grant to support the BIR’s Information and Communications Technology (ICT) Modernization Strategy and Data Center Technical Assistance Project.

Finance Undersecretaries Antonette C. Tionko and Mark Dennis Y.C. Joven, along with BIR Deputy Commissioner Lanee C. David, have been tasked to negotiate and facilitate the application for the grant with USTDA representatives.

Either Finance Secretary Carlos G. Dominguez III or BIR Commissioner Caesar R. Dulay will be concluding, signing and executing the grant agreement.

The BIR’s modernization project will focus on improving the bureau’s infrastructure and operations.

“The project funded by the USTDA grant will ensure an in-depth technical assessment of the BIR’s current ICT environment, the development of an enterprise architecture road map, and an assessment of the organizational framework of the BIR’s Information System Group (ISG) including recommended restructuring and training programs,” the DoF said.

Mr. Dominguez said the bureau’s shift to digital operations helped it deliver better services and improve its tax collection performance during the pandemic.

The DoF said tax collections as a proportion of gross domestic product — an indicator known as tax effort — grew to 14.5% in 2019 from 13% in 2015.

He said the digital transformation also led more taxpayers to use electronic filing and payment systems for faster transactions, especially during the pandemic.

The bureau’s current electronic payment platforms include e-wallet applications Paymaya and G-Cash, and online banking channels such as the LANDBANK Linkbiz, DBP PayTax, Union Bank Online and PESONet.

The web-based Internal Revenue Integrated System, meant as a central repository to process taxpayers’ information, is targeted for nationwide implementation by the end of 2021, following its pilot launch in April last year.

Its Electronic Audited Financial System launched in June allows businesses to submit their financial statements to the bureau online. — Beatrice M. Laforga

DA bans poultry imports from parts of Ireland

THE Department of Agriculture (DA) has imposed a temporary ban on poultry imports from parts of Ireland after Dublin reported outbreaks of the H5N8 highly pathogenic avian influenza (bird flu).

In a memorandum order signed on Jan. 15, Agriculture Secretary William D. Dar suspended the entry of domestic and wild birds and their products such as poultry meat, day old chicks, eggs, and semen from Knockananna in County Wicklow, Ireland.

The ban also freezes the processing, evaluation, and issuance of sanitary and phytosanitary import clearances for these commodities.

Mr. Dar said the government of Ireland reported on Dec. 12 last year confirmed H5N8 outbreaks in County Wicklow.

In a separate memorandum order, the DA lifted the ban on poultry imports from Chesterfield County in the US state of South Carolina.

Mr. Dar said Chesterfield County has confirmed that it is free from bird flu.

He added that according to the evaluation of the Bureau of Animal Industry (BAI), the risk of contamination from imported poultry products is negligible.

The DA issued the ban on the South Carolina imports in a memorandum circular in April 2020, after the US Department of Agriculture confirmed an H7N3 outbreak in Chesterfield County turkeys.

The BAI estimates that US chicken imports amounted to 99.82 million kilograms in 2020, equivalent to 24.8% of the Philippines’ total chicken imports, reckoned at about 402.70 million kilograms.

US duck imports in 2020 totaled 41,280 kilograms and accounted for 42.4% of total imports of 97,421 kilograms. The BAI data did not have an estimate for poultry imports from Ireland.

Separately, the Meat Importers and Traders Association (MITA) recommended that the 5% tariff rates on the chicken mechanically deboned meat (MDM) imports be incorporated into the ongoing tariff review to prolong its effectivity to five years, instead of two years.

“Unfortunately, this only means that next year, the affected industries will need to re-engage one another including government on its extension, expending valuable resources and energy unnecessarily,” Jesus C. Cham, the organization’s president, said in a letter to the National Economic and Development Authority (NEDA) on Wednesday.

On Jan. 15, President Rodrigo R. Duterte signed Executive Order (EO) No. 123 that retained the tariff rate on MDM to 5% until the end of 2022. Earlier, EO 82 had reduced the tariff rate from 40%, which expired on Dec. 31.

Mr. Cham recommended the implementation of lower tariffs on pork imports such as In Quota Pork, from 30% to 10%, and Out Quota Pork, from 40% to 20%.

“The expansion of the pork Minimum Access Volume (MAV) merely increases access to supply but does not impact the price or landed cost. The reduction of pork duty by a nominal 10% will translate into a reduction in landed cost of P15 per kilogram,” Mr. Cham said.

The DA said it plans to triple the annual MAV to 150,000 metric tons (MT) from the current 54,000 MT to address the low supply and high retail prices of pork. Imports under MAV are charged a 30% tariff while those outside MAV are assessed at 40%.

DA spokesman Noel O. Reyes said in response to a request for comment that MITA’s recommendation has to be evaluated by the DA, NEDA, Committee on Tariff and Related Matters, and the Trade department.

“One factor to consider is the stand of poultry raisers’ groups since they complain that the tariff system is used as a means of ‘technical smuggling,’ such as the misdeclaration of containers where choice cuts are mixed with MDM,” Mr. Reyes said in a mobile phone message. — Revin Mikhael D. Ochave

Farmgate price of palay up 0.4% in late December

THE average farmgate price of palay, or unmilled rice, rose 0.4% week-on-week to P16.50 per kilogram in the fifth week of December, with the price improving 4.4% year on year, the Philippine Statistics Authority (PSA) said.

In its weekly update on palay, rice, and corn prices, the PSA said the average wholesale price of well-milled rice fell 0.2% to P37.40 while the retail price fell 0.4% to P40.89.

The average wholesale price of regular-milled rice rose 0.1% to P33.38 while the retail price was flat at P36.17.

The farmgate price of yellow corn grain rose 1% week-on-week to P12.35.

The average wholesale price of yellow corn grain rose 0.9% to P19.84 while the retail price rose 0.5% to P24.69.

The farmgate price of white corn grain rose 0.3% week-on-week to P13.35.

The average wholesale price of white corn grain rose 1.9% to P16.81 while the retail price rose 0.4% to P25.63. — Revin Mikhael D. Ochave

Peso seen strengthening to P46/dollar by end-2021

THE PESO could strengthen further this year to P46 against the dollar by the end of 2021, due in part to the strong performance of the current account, according to the private banking arm of Hongkong and Shanghai Banking Corp. Ltd. (HSBC).

Dollar weakness and solid remittances will also be factors, according to Cheuk Wan Fan, the head of investment strategy and advisory for Asia at HSBC Private Banking, at a news conference Wednesday.

“The currency will remain firm, the Philippine peso is one of the best performing EM (emerging market) currencies and this is driven by strong current account position, with the rebound in export performance, and the weakening of the US dollar last year,” she said.

“From now to the end of the year, we expect the peso to stay largely stable, with the peso currently trading at P48 (to the dollar). We are expecting P46 at the end of this year and the big move has already happened in the second half of last year,” she added.

The peso closed at P48.03 on Wednesday, strengthening from its P48.078 close on Tuesday.

The current account posted a $4.1-billion surplus in the third quarter of 2020, turning around from the $456-million deficit a year earlier.

The Bangko Sentral ng Pilipinas expects the current account to be in surplus by $8.4 billion, equivalent to 2.3% of gross domestic product (GDP), for 2020. This is expected to narrow to $6.1 billion or 1.5% of GDP this year.

Ms. Fan said the strengthening of the peso will also be further supported by the robust remittances from overseas Filipinos. Cash remittances grew by 0.3% to $2.379 billion in November, marking its third consecutive month of growth. Remittances, however, were still down 0.8% at $27.013 billion in the first 11 months of 2020.

Ms. Fan said she expects the Philippine economy to have contracted by 9.7% last year due to the protracted lockdown and the failure to speedily contain the spread of the coronavirus disease 2019 (COVID-19).

She said HSBC Private Banking sees the economy growing 6.5% this year, at the lower end of the government’s 6.5-7.5% growth target.

She said the recovery will hinge on the further reopening of the economy, assuming that COVID-19 cases remain manageable levels and an effective rollout of vaccines.

“The Philippine economy will likely lag behind its Asian peers, particularly the North Asian peers like China which has been doing relatively well in containing the virus. In our view, the recovery trajectory will largely hinge on the containment strategy in the fight against the COVID-19 pandemic,” Ms. Fan said. — Beatrice M. Laforga

ADB sees job losses of 24% from BPO, electronics automation

THE PHILIPPINES needs to improve its technical and vocational education to offset the expected loss of 24% of the jobs in the business process outsourcing (BPO) and electronics manufacturing industries by 2030, due to increased automation, the Asian Development Bank (ADB) said.

In a study which assessed the information technology-business process outsourcing (IT-BPO) and electronics manufacturing sectors, the ADB concluded that major job losses are in the works but could lead to the creation of new and high-skilled jobs.

Automation in the IT-BPO sector will have a greater impact on male employees, with around 151,000 male workers expected to be displaced, against the 135,000 female employees seen losing their jobs.

Meanwhile, 97,000 women will likely be laid off in the electronics manufacturing industry against 77,000 men.

Despite the projected layoffs, the ADB said productivity in the two sectors will improve dramatically, with more than half of the employers surveyed in those two sectors seeing productivity growth of more than 25% by 2030.

Time spent on analytical and non-routine tasks is expected to increase 13.3%, while time on routine tasks will fall by a similar proportion by 2030. This will make skills like critical thinking and adaptive learning, written and verbal communication, numeracy, management and socialization more critical.

“To support those at higher risk of job displacement, we must look at new approaches to strengthen inclusion and social protection in the context of (the fourth industrial revolution), to ensure that no one is left behind in the new economy,” ADB Philippines Country Director Kelly Bird said in a statement Wednesday.

The ADB said new jobs will emerge as technologies increase productivity, efficiency and competition but the skills of workers will have to be drastically improved. Such a scenario can even result in positive net employment as new jobs created offset the jobs lost.

“These will not materialize if there is a lack of suitable skills in the local workforce to support them. In short, the Philippines’ approach to skills development will be critical in realizing a positive labor market outcome related to 4IR in this industry,” according to the report, “Reaping the Benefits of Industry 4.0 Through Skills Development in the Philippines.”

It estimated 14.2 million more people will have to be trained further by 2030, 14.2 million from the IT-BPO industry and 7.5 million from the electronics manufacturing sector. The bulk of the training requirements to boost their skills will come from on-the-job training and the rest from short professional courses and longer bouts of formal training. — Beatrice M. Laforga

NCR wholesale price of construction materials rises in December

WHOLESALE PRICES of construction materials in Metro Manila grew at a faster pace in December, while retail price growth slowed, according to the Philippine Statistics Authority (PSA).

The PSA said Wednesday that the construction materials wholesale price index (CMWPI) rose 1% year on year in December from a rise of 0.8% in November.

Growth in the construction materials retail price index slowed to 1.4% in December from 1.7% the previous month.

The acceleration in CMWPI growth was driven by sand and gravel (2.9% from 0.9%), galvanized iron sheets (1.2% from 0.9%), electrical works (1.6% from 1.4%), and PVC pipes (4.8% from 4.4%).

Price growth eased in concrete products and cement (1% from 1.1%) and hardware (2.6% from 3.4%).

Year-on-year declines were observed in plywood (-0.1%), reinforcing and structural steel (-0.8%), plumbing fixtures and accessories/waterworks (-1.4%), and fuel and lubricants (-8.1%).

Wholesale price movements in the following construction materials were unchanged during the month: lumber (3.7%); tileworks (14.4%); glass and glass products (7.1%); doors, jambs, and steel casements (0.2%); painting works (0.7%); asphalt (0%); and machinery and equipment rental (0%).

At the retail level, slower price increases were noted in masonry materials (1% from 1.4% in November), painting materials and related compounds (1.5% from 1.8%), tinsmithry materials (2.8% from 2.9%), and miscellaneous construction materials (1% from 1.6%).

Only plumbing materials saw an acceleration in price growth of 0.7% from 0.6% previously.

Price growth in carpentry and electrical materials was unchanged at 1.4% and 0.8%, respectively.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the acceleration in wholesale prices to the seasonal pickup in business and consumer spending, which caused increased demand.

“However, the softer economic conditions largely due to the COVID-19 (coronavirus disease 2019) pandemic, as well as some slowdown in infrastructure spending as delayed by restrictions on public transportation and in some industries, and may have still led to the deceleration in the retail prices in construction materials,” Mr. Ricafort said in a mobile message.

The economist expects increased government spending for infrastructure to be one of the “offsetting positive factors” that could lead to a pickup in the demand for construction materials, adding that the preparations for next year’s national elections may require “expeditious completion of various government projects.”

“Near-record low interest rates would also help stimulate loan demand for investments, construction activities, and financing to purchase real estate by businesses, individuals, and households,” Mr. Ricafort said. — B.A.D. Añago

1...7,1367,1377,138...12,791Page 7,137 of 12,791
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube