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Senate approves P4.5-T budget for next year

By Charmaine A. Tadalan and Kyle Aristophere T. Atienza, Reporters

THE SENATE on Thursday passed on final reading the P4.5-trillion national budget for next year, which lawmakers said would boost government response to the coronavirus pandemic.

Twenty-two senators voted to approve the proposed General Appropriations Act of 2021, which is targeted to be enacted by yearend. There were no negative votes or abstentions.

Detained Senator Leila M. de Lima and Senator Ronald M. dela Rosa, who tested positive for the coronavirus last week, failed to vote.

“Much of the increases the committee has made is in the health sector and with regard to our COVID-19 response,” Senator Juan Edgardo M. Angara said during Thursday’s session.

President Rodrigo R. Duterte had certified the budget as an urgent measure, allowing the chamber to pass the bill on second and third reading on the same day.

Mr. Angara, who heads the finance committee, said the budget includes P8 billion for vaccines under the Department of Health (DoH) budget. About P54 billion was also set aside for vaccines and P21 billion for their storage, transportation and distribution under unprogrammed funds.

Regional hospitals will get P1.6 billion, while health facilities will get P6.497 billion under DoH.

Senators also allotted P21 billion for the country’s disaster response and P15 billion for local governments’ rehabilitation programs after recent typhoons.

“Our experience in the past few weeks has only underscored how we continue to be threatened by natural calamities,” Mr. Angara said.

“This is why your committee has elected to augment different policies and programs with regard to our disaster response and mitigation,” he added.

At least P180 billion will be used to fund various social welfare programs such as cash aid to displaced workers and conditional cash transfers to the poor.

The fund will also be used to implement a national ID system and help low-income households affected by the pandemic.

The education sector will get the biggest share of the budget with P712.348 billion, which is mandated by the Constitution.

The Senate version of the budget bill increased the budget of the Department of Information and Communications Technology by P5 billion to P15.34 billion.

Senators and congressmen are expected to reconcile disagreeing provisions of their bills at a bicameral conference committee from Nov. 28 to Dec. 3. They plan to approve a reconciled version by Dec. 9, which will be sent to the presidential palace by Dec. 16.

Members of the Senate contingent include Senators Pia S. Cayetano, Cynthia A. Villar, Panfilo M. Lacson, Sherwin T. Gatchalian, Richard J. Gordon, Christopher Lawrence T. Go, Imee R. Marcos, Risa N. Hontiveros-Baraquel, Grace S. Poe-Llamanzares, and Francis N. Pangilinan.

Senators dela Rosa, Emmanuel D. Pacquiao, Maria Lourdes Nancy S. Binay and Ramon B. Revilla, Jr. will act as alternates.

“We now look forward to sitting with our Senate counterparts in conference possibly starting next week to come up with a common version of the budget,” Speaker Lord Alan Q. Velasco said in a statement.

He said the House of Representatives had formed a contingent composed of 21 members from various political parties to represent it at the bicameral conference on the 2021 budget bill.

“These representatives will make sure there will be enough funds for the government’s COVID-19 response, especially the procurement of vaccines for an initial 20 million poor Filipinos and eventually for at least 60 million of our population,” he added.

“We also want to ensure sufficient funding for the rehabilitation and recovery of communities devastated by recent typhoons, including Rolly and Ulysses,” Mr. Velasco said. “We should help our people rebuild their lives.”

The House on Wednesday night named 21 congressmen who will form part of the bicameral conference committee on the 2021 budget.

Mr. Velasco in an earlier statement said the bill must be sent to the palace for Mr. Duterte’s signature before the year ends to prevent a re-enacted spending program that could slow economic growth and hamper the delivery of government services in the wake of the COVID-19 pandemic.

The House contingent will be led by Party-list Rep. Eric G. Yap, who heads the committee on appropriations.

He will be joined by several congressmen from the majority including Oriental Mindoro Rep. Salvador C. Leachon, Party-list Rep. Odylon L. Romero, Leyte Rep. Ferdinand Martin G. Romualdez, Antique Rep. Loren B. Legarda and Ilocos Sur Rep. Kristine Singson-Meehan.

Antipolo City Rep. Roberto V. Puno, Albay Rep. Jose Maria Clemente S. Salceda, and Party-list Reps. Jose Livioko Atienza Jr. and Bernadette Herrera-Dy are also part of the committee.

Also joining the contingent are Party-list Rep. Joseph Stephen S. Paduano, a minority lawmaker, and independent Albay Rep. Edcel C. Lagman.

Mr. Velasco earlier said the House would seek an increase of at least P5 billion in the 2021 calamity fund for the rebuilding of areas devastated by recent typhoons.

Sanofi eyes 1.4B doses of coronavirus vaccines

SANOFI PASTEUR is seeking to produce as many as 1.4 billion doses of coronavirus vaccines by the end of next year as part of a plan to boost its manufacturing capacity to meet global demand, a company official said.

The drug maker is planning to produce a billion doses under its first of two candidate vaccines, Jean-Antoine Zinsou, country general manager at Sanofi Pasteur Philippines, said at BusinessWorld’s annual economic forum on Wednesday.

The vaccine entered the first and second phases of clinical trials in September and is expected to start phase 3 by yearend, he told the online forum.

The company is also seeking to make as many as 360 million doses under its second candidate vaccine, which is expected to enter the first two phases by yearend, Mr. Zinsou said.

Sanofi partnered with GlaxoSmithKline and the US Biomedical Advanced Research and Development Authority for the first candidate vaccine. It also partnered with Translate Bio, a clinical-stage messenger RNA therapeutics company, for the second vaccine. Mr. Zinsou said manufacturers should be ready to produce massive quantities of coronavirus disease 2019 (COVID-19) vaccines.

“You can develop the vaccine and the vaccine can be ready for registration and even have a market authorization, but if there is no manufacturing capacity, it is useless,” he said. “The development of the vaccine is something but the production at a sufficient scale is also extremely important,” he added.

Mr. Zinsou said each government should come up with a vaccination preparedness plan that includes prioritization of those who need to be vaccinated once a vaccine becomes available.

Vaccination plans should also cover logistics and communications.

Mr. Zinsou said that there are more than a hundred candidate vaccines that have to undergo a rigorous process.

“We are not competing with one another, we have billions of people to vaccinate, probably more than one vaccine will be needed,” he said.

The Department of Health (DoH) reported 1,392 coronavirus infections on Thursday, bringing the total to 424,297.

The death toll rose by 27 to 8,242, while recoveries increased by 328 to 387,266, it said in a bulletin.

There were 28,789 active cases, 84% of which were mild, 8.3% did not show symptoms, 4.9% were critical, 2.6% were severe and 0.26% were moderate.

Caloocan City reported the highest number of new cases at 77, followed by Cavite and Laguna at 73 each, Davao City at 62 and Quezon province at 60.

DoH said 10 duplicates had been removed from the tally, while nine recoveries were reclassified as deaths. Nine laboratories failed to submit their data on Nov. 25, it added.

The coronavirus has sickened about 60.8 million and killed 1.4 million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization.

About 42.1 million people have recovered, it said.

DoH and the Trade department this week signed a joint administrative order imposing a price cap on swab tests for the coronavirus.

Health Secretary Francisco T. Duque III on Wednesday said private laboratories may charge P4,500 to P5,000, while their state counterparts must have a flat rate of P3,800. The clinical trials for Japanese anti-flu drug Avigan as treatment for the coronavirus started on Nov. 20 with eight participants, DoH said on Wednesday. — Vann Marlo M. Villegas

Gov’t told to increase budgets of oversight bodies vs corruption

THE PHILIPPINE government should increase the budget of its three oversight agencies as part of its anti-corruption drive, a local think tank said on Thursday.

The Civil Service Commission, Commission on Audit and Office of the Ombudsman should all get a bigger budget to make them more effective, Francisco A. Magno, a convenor of Stratbase ADR Institute for Strategic and International Studies, told an online forum on Thursday.

The funds would also let them hire more people, he said.

“This would ensure that public accountability measures are supplemented by social accountability mechanisms that keep government officials open, honest and accountable,” Mr. Magno said.

He sought the passage of bills strengthening the Ombudsman and the full enforcement of the National Anti-Corruption and Advocacy Plan, as well as the country’s commitment to the United Nations Convention Against Corruption.

Leyte Rep. Martin G. Romualdez earlier endorsed a list of anti-corruption measures to the House of Representatives leadership including one that seeks to give the Ombudsman a 30% share in any properties forfeited in favor of the state.

Twin bills also seek to include anti-corruption and governance in the basic education and higher education curricula. There is also a bill that will protect whistleblowers.

Mr. Magno said the government “appears to be singularly focused on investigation as its anti-corruption program.” “Every agency of the government has to establish effective internal control systems to prevent corruption,” he added.

At the same forum, former Ombudsman Conchita Carpio-Morales said the lack of accountability in the allocation and distribution of economic stimulus packages had increased the risk of corruption.

The public should keep watch of those in power, she said. “If these leaders seriously fail in their use of power, it will not go unpunished.”

President Rodrigo R. Duterte had sought emergency powers to address the coronavirus pandemic.

His allies in Congress had also tried to give him additional powers to solve various problems including traffic congestion and corruption. — Kyle Aristophere T. Atienza

Ex-President Arroyo named Duterte adviser

President Rodrigo R. Duterte has appointed former President Gloria Macapagal-Arroyo as his adviser for projects at the Clark Freeport and Special Economic Zone in Pampanga province.

Ms. Arroyo, who also served as Speaker and Pampanga representative until her retirement last year, will be paid a peso yearly, presidential spokesman Harry L. Roque said in a statement on Thursday night.

He cited Ms. Arroyo’s “wisdom and her vast experience as a former head of state.”

As presidential adviser on Clark flagship programs and projects, she would help the government in planning and executing programs that seek to turn Clark as “the next premier metropolis of Asia,” the presidential palace said.

Ms. Arroyo served as Philippine president from 2001 to 2010. In 2011, she was held under hospital arrest at the Veterans Memorial Medical Center in Quezon City for electoral sabotage.

She was later released on bail and the charges were dropped for insufficient evidence.

In 2012, Ms. Arroyo was accused of misusing state lottery funds worth more than P300 million. The court allowed her to go on a hospital arrest supposedly because of her poor health.

The Supreme Court under the administration of Mr. Duterte, a political ally, acquitted her in 2016. — Gillian M. Cortez

DA releases new agri goods SRP list for Metro Manila

THE DEPARTMENT of Agriculture has announced a new suggested retail price (SRP) list for agricultural products sold in wet markets across Metro Manila in line with the declaration of a Luzon-wide state of calamity following the recent series of typhoons. Agriculture Secretary William D. Dar signed on Thursday Administrative Circular No. 17 implementing the new SRP list for selected food products. Mr. Dar cited the need to control prices for basic goods so as not to worsen the difficulties experienced by Filipino consumers affected by the coronavirus pandemic and the impact of the disasters.  “The SRP shall be applicable within the wet markets of Metro Manila, to the exclusion of supermarkets,” Mr. Dar said. Under Republic Act No. 7581 or the Price Act, the government is mandated to ensure that prime commodities are available at all times and are retailed at reasonable prices without impeding on the fair return of investment for businesses. The Agriculture department and other government agencies recently implemented a price freeze on selected agricultural and fishery commodities after the state of calamity declaration.

The suggested retail price of select food commodities are as follows:

·         Imported commercial rice (special) – P52 per kilogram

·         Imported commercial rice (premium) – P45 per kilogram

·         Imported commercial rice (well-milled) – P36 per kilogram

·         Local commercial rice (special) – P50 per kilogram

·         Local commercial rice (premium) – P45 per kilogram

·         Local commercial rice (well-milled) – P40 per kilogram

·         Bangus (3-4 pcs medium) – P160 per kilogram

·         Tilapia (5-6 pcs medium) – P120 per kilogram

·         Roundscad (galunggong) imported (11-20 pcs medium) – P140 per kilogram

·         Alumahan – P250 per kilogram

·         Beef rump – P380 per kilogram

·         Beef brisket – P300 per kilogram

·         Pork pigue/kasim – P260 per kilogram

·         Pork liempo – P290 per kilogram

·         Whole chicken – P140 per kilogram

·         Chicken egg (medium) – P6.50 per piece

·         Ampalaya – P120 per kilogram

·         Sitao – P100 per kilogram

·         Pechay (Native) – P80 per kilogram

·         Squash – P30 per kilogram

·         Eggplant – P100 per kilogram

·         Tomato – P100 per kilogram

·         Cabbage (Scorpio) – P70 per kilogram

·         Carrots – P80 per kilogram

·         Baguio beans – P130 per kilogram

·         White potato – P70 per kilogram

·         Pechay (Baguio) – P80 per kilogram

·         Chayote – P40 per kilogram

·         Red onion – P160 per kilogram

·         Red onion (imported) – P120 per kilogram

·         White onion (imported) – P100 per kilogram

·         Garlic (imported) – P90 per kilogram

·         Ginger – P160 per kilogram

·         Calamansi – P50 per kilogram

·         Banana (Lakatan) – P90 per kilogram

·         Banana (Latundan) – P70 per kilogram

·         Papaya – P60 per kilogram

·         Mango (Carabao) – P150 per kilogram

·         Sugar (Refined) – P 50 per kilogram

·         Sugar (Washed) – P45 per kilogram

·         Sugar (Brown) – P45 per kilogram

·         Cooking oil (Palm 350 ml) – P25

·         Cooking oil (Palm one liter) – P50

— Revin Mikhael D. Ochave

Nationwide round-up (11/26/20)

Trade chief says open to PITC review

TRADE Secretary Ramon M. Lopez on Thursday said he is open to reviewing the functions of his department’s trading arm after a senator pointed out redundancies. “We’re open to that, depende kung ano ang talagang gawing (it depends on what type of) review ng (will be undertaken by the) Senate. We will go with it,” he said in an interview with CNN Philippines. Senator Panfilo M. Lacson on Wednesday callled for a probe of the Philippine International Trading Corporation’s (PITC) functions for potential redundancies. He cited that the Department of Budget and Management has its own procurement service, while other government agencies also procure items through their own Bids and Awards Committees. Senate Minority Leader Franklin M. Drilon has also raised that some P33 billion in taxpayers’ money is “parked” at the PITC, which he said should be returned to the Treasury for use in procuring coronavirus disease 2019 (COVID-19) vaccines. Mr. Lopez has defended that the agency places its funding in escrow until the terms of its transactions are finalized, while budgets from failed auctions return to the Treasury. He said that of the P33 billion with the PITC, around P11 billion has been awarded for delivery while P21 billion is part of ongoing procurement. “What will happen to the equipment procurement requirement of several agencies if they return the balance funds? These were approved budget and must be implemented,” he said in a Viber message to reporters. He added that the funds are not with PITC itself, but with state banks. “We’re willing to undergo itong (this) process of review, but what we’re just seeing is that (the PITC) has its mandate, and it’s performing its mandate.” — Jenina P. Ibañez

Gov’t targets to vaccinate 25M annually for COVID-19

THE government plans to vaccinate at least 25 million Filipinos yearly against the coronavirus disease 2019 (COVID-19), with an initial total target of at least 60 million to attain herd immunity. In a briefing on Thursday, Secretary Carlito G. Galvez, Jr., appointed vaccine czar, said the ultimate goal is to administer COVID-19 vaccines to 75% of the country’s 108 million population, or about 81 million people. “We can cover about 25 to 30 million (people) a year as our target,” he said. Mr. Galvez explained that this target takes into consideration the challenges that may be posed by the global supply and demand for the vaccines. Health experts recommend that the target population for the vaccination be covered at the same time to actually create herd immunity. Earlier this week, the Finance secretary announced that the government plans to borrow P73.2 billion to procure vaccines for 60 million Filipinos. — Gillian M. Cortez 

Higher infra funds for Velasco-allied congressmen ‘not true,’ says Yap

A LAWMAKER on Thursday denied allegations that allies of House Speaker Lord Alan Q. Velasco received higher infrastructure funds for their congressional districts under the proposed 2021 national budget. It is “not true” that Velasco allies got “noticeable” increases in the budgets of their congressional districts, while those allied with former speaker and Taguig Rep. Alan Peter S. Cayetano got “reduction,” House appropriations committee chair Eric Yap told BusinessWorld on Thursday, referring to the claims previously made by Senator Panfilo M. Lacson. As to whether the House will pursue an investigation into corruption allegations against several congressmen, Mr. Yap said the chamber “needs to finish the budget.” The bicameral committee conference on the proposed P4.5 trillion budget for next year is scheduled to begin on Nov. 28. President Rodrigo R. Duterte earlier said there are corrupt lawmakers but he cannot investigate them as they belong to another branch of government. House Deputy Minority leader Carlos Isagani T. Zarate said such stance by the President only shows “selective justice,” citing that the administration “initiated the investigation against Sen. Leila De Lima and now she’s still under detention.”— Kyle Aristophere T. Atienza

Regional Updates (11/26/20)

PCIC releases P347-M indemnification funds to calamity-affected farmers, fishers

THE PHILIPPINE Crop Insurance Corp. (PCIC) has so far released P347 million worth of indemnification funds to insured farmers and fisherfolk affected by the onslaught of recent typhoons and other calamities. PCIC said this current amount represents the initial payment on the P1.5 billion worth of damages reported by its clients across seven regions. “The balances are in various stages of processing, and will be released within 10 days following the completion of required documents,” the agency said in a statement on Thursday. About 121,000 farmers and fisherfolk reported losses on various crops as well as agricultural  assets.

RICE
Meanwile, rice farmers have been advised to use high-quality inbred seeds to increase output after the damage sustained by the agriculture sector. “Crops from high-quality seeds are resistant against pests and diseases. They also grow, mature, and ripe uniformly, which leads to more efficient harvesting activities,” Philippine Rice Research Institute (PhilRice) Agriculturist Fredierick M. Saludez said in a recent webinar. He stressed that farmers should use rice seeds that are of recommended varieties, which can increase yield by 10% to 15%, as well as ensure that these are certified by the Bureau of Plant Industry (BPI). “If there are no accredited seed growers in the locality, high-quality seeds may be sourced from farmers who can produce their own high-quality seeds. Farmer-produced seeds should pass germination re-test to determine their quality. The re-test may be done by the farmer or BPI,” Mr. Saludez said. — Revin Mikhael D. Ochave 

Duterte commits support to Bangsamoro transition period extension

THE Palace on Thursday said President Rodrigo R. Duterte will support the proposal to extend the transition period of the Bangsomoro government. “He will help in amending the law but there really is a need for the BARMM (Bangsamoro Autonomous Region in Muslim Mindanao government) to communicate with the congressmen and senators),” Palace Spokesperson Harry L. Roque said in Filipino in a briefing on Thursday. The Bangsomoro Parliament earlier this month recommended extending the transition period of its new government by three years to 2025. The Bangsamoro Organic Law provides that an election be held in the region in 2022 alongside the scheduled national and local elections. Mr. Duterte met with top BARMM officials in Davao City earlier this week. — Gillian M. Cortez

Labor department finds violations in Skyway Extension project

THE Department of Labor and Employment (DoLE) said it found occupational and safety violations in the ongoing Skyway Extension project that led to an accident where one motorist was killed and six others injured. “There were quite a number of non-compliances on occupational safety and health standards,” Labor Secretary Silvestre H. Bello III said in a briefing on Thursday. Among the violations found were the absence of warning signs in the area and operators of the equipment did not have proper license. On Monday, the department issued a work stoppage order on the project. Mr. Bello said they met with the project’s owner, contractors, and subcontractors on Nov. 24.

The stoppage order has been lifted in consideration of the impact on 900 workers involved in the construction. — Gillian M. Cortez

Makati reiterates call for businesses to avail of cash grant;  almost 5,000 so far apply for P2.5-B stimulus package

MAKATI Mayor Abigail Binay-Campos on Thursday again called on business owners to avail of the financial assistance being offered by the city government, with cash grants ranging from P10,000 to P100,000 depending on the business type and number of Makati residents employed. The local government has allocated P2.5 billion for its Makati Assistance and Support for Businesses (MASB) program, wherein the aid will be paid directly to the establishment’s suppliers and workers. “The MASB Program aims to provide recovery funds to businesses, boost the local economy, and promote the employment of Makatizens, especially those affected by the COVID-19 pandemic,” the mayor said in a statement on Thursday. The stimulus program, which will be open until December 31, has so far received around 5,000 applications, the city government said.

Gov’t scales back domestic bond program to P120B in Dec.

THE government plans to borrow P120 billion from domestic lenders in December, less than the P140 billion targeted for this month.

In an online advisory posted on Wednesday, the Bureau of the Treasury (BTr) said it will borrow P60 billion in Treasury bills (T-bills) and P60 billion in Treasury bonds (T-bonds) next month.

For the T-bills, the BTr will auction off 91-day and 182-day paper worth P5 billion each and 364-day paper worth P10 billion on Dec. 2, 9 and 16.

It will offer three-year and seven-year T-bonds worth P30 billion each on Dec. 3 and Dec. 17, respectively.

National Treasurer Rosalia V. de Leon has said that investors remain highly liquid and interested in short tenors amid the economic uncertainty.

“The rates will trend downward for short tenors with fueled bias for the front end and high volume of liquidity,” she said via Viber this week.

Citing consistent oversubscriptions to government securities, she added investors have been taking advantage of benign inflation and record-low policy rates set by the central bank.

A trader, who asked not to be identified, said via Viber that the smaller offering might have been influenced by “thin liquidity in the market ahead of the year-end holidays.”

Meanwhile, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said the Treasury reduced its borrowing to avoid enlarging the budget deficit.

“With the year winding down, the BTr opted for a smaller borrowing plan with disbursement and expenditures expected to fall as authorities look to limit the size of the budget deficit,” he said in an e-mail.

The BTr reported the budget deficit rose by 24.56% to P61.4 billion in October. This brought the year-to-date shortfall to a record P940.6 billion, up 170% from a year earlier.

In 2019, the budget deficit hits P660.2 billion. Economic managers estimated that the budget gap will hit P1.815 trillion this year, equivalent to 9.6% of gross domestic product (GDP).

“On the T-bonds, demand has waned considerably, as investors prefer to keep tenors shorter given the tenuous recovery of the Philippines,” Mr. Mapa said.

Socioeconomic Planning Acting Secretary Karl Kendrick T. Chua said he expects the economy to return to pre-pandemic levels only in the second half next year.

The economy remained in a recession as GDP contracted by 11.5% in the third quarter after the 16.9% plunge in the second quarter, according to the Philippine Statistics Authority (PSA). GDP grew by 6.3% in the third quarter of 2019.

A BusinessWorld poll of 19 economists returned a median forecast of a 9.2% decline in the third quarter.

The BTr canceled samurai and panda bond issues this year after the Bangko Sentral ng Pilipinas approved an advance credit to the national government to manage liquidity in the market.  Instead, the BTr launched a second tranche of Premyo bonds to retail investors to raise at least P3 billion. The offer period is set to run between Nov. 11 and Dec. 18.

The government wants to raise around P3 trillion this year from domestic and foreign lenders to help plug its budget deficit. — Kathryn Kristina T. Jose

Regional green economy shift valued at $1 trillion every year by 2030

A SHIFT to the green economy by Southeast Asia is projected to be worth about $1 trillion a year by 2030, Bain & Co. said in a report.

The valuation takes into account the emergence of new products and sectors related to sustainable production and consumption as well as savings from the efficient use of resources, Bain said in its Insights report.

The breakdown includes $270 billion in annual “economic opportunities” for energy and resource extraction, $205 billion for food and agriculture; $200 billion for industries and logistics; and $185 billion for urban centers, the firm said.

The report detailed several pathways unlocking the potential of the green economy, including a shift in energy, food systems, industries, logistics, urban planning, and green financing.

“Companies can take bold action to rebalance portfolios by doubling down on low-carbon investments such as renewable energy sources. Gas will also remain key as a complementary transition fuel,” Bain said.

The consultancy said that businesses can also look into the electrification of offshore assets to improve energy efficiency, adopt circular economy practices, and participate in biodiversity conservation efforts.

Food and agriculture-related businesses may look into investing in new technology like alternative proteins, urban agriculture, and sustainable aquaculture, Bain said.

“Businesses can venture into urban agriculture practices such as vertical and indoor farming, while tapping into technologies that can increase yield and nutritional values,” it added.

Industries and logistics companies paving the way for a greener economy should look into reducing their carbon footprint, and digitizing their supply chains for efficiency.

Meanwhile, firms that seek to transform urban centers into green and connected cities can look for opportunities to install energy-efficient fixtures in houses; and using the Internet of Things (IoT) systems to streamline a city’s development.

Bain also highlighted the importance of green financing, describing it as an enabler for growth, sparking the transition to a green economy. It said financial institutions, investors, and service providers can pursue an accelerated shift to sustainable investing, and the development of green financial instruments, among others.

The latest Sustainable Development Goals (SDG) index indicate that none of the Southeast Asian nations were part of the Top 40 countries closest to achieving all 17 SDGs.

The Philippines is in 99th place, with an overall score of 65.50. — Angelica Y. Yang

Competition commissioner touts red tape reduction as big help to small businesses

MICRO, small and medium enterprises (MSMEs) will find it easier to do business if they receive efficient services from their regulators, the Philippine Competition Commission (PCC) said on Wednesday.

“Many of our MSMEs would stand to benefit more from a streamlining of the regulatory process, the qualification requirements and procedures, the licensing requirements and procedures that are required to set up the business,” PCC Commissioner Johannes Benjamin R. Bernabe said during a webinar hosted by the PCC and the Philippine Chamber of Commerce and Industry.

He said this underlies the PCC’s position on the proposed Retail Trade Liberalization Act (RTLA).

In September, the Commission called for a transitory period for the lowering of the capitalization requirement for foreign retail investors, which was reduced to $200,000 or approximately P10 million, from $2.5 million.

During the webinar, Mr. Bernabe noted that the high cost of complying with regulation hindered MSMEs.

Earlier, he said that there should be an “easing of regulatory permit requirements in improving credit access for MSMEs.”

GCash Head of Key Merchants and Acquirers Maria Ana Leticia Pascual said all participants in the fintech industry have to develop various solutions for MSMEs.

“This is now going to be one of our major thrusts in the coming years. How do we provide more solutions for MSMEs? How do we bring them on to the market, and how do we give them the tools that they can compete on a level playing field with even the bigger players?” Ms. Pascual said during the webinar.

The amendments to the proposed RTLA or House Bill No. 59 passed on third reading last March. — Angelica Y. Yang

Retail price growth of construction materials in NCR accelerates

RETAIL price growth of construction materials in Metro Manila accelerated to its highest level in nearly two years in October, according to the Philippine Statistics Authority (PSA).

The retail-level index, known as the construction materials retail price index, in the National Capital Region was 1.4% in October, the highest growth rate since February 2019’s 1.6%.

The October result compares with 1.3% in September and 0.7% a year earlier.

The index has been in positive territory for the 11th consecutive month.

The latest result was driven by higher growth in tinsmithry materials (2.2% from 1.7% in September); masonry materials (1.4% from 1.1); and painting materials and related compounds (1.8% from 1.7%).

The index for electrical materials sustained the 0.8% growth posted in September.

Price growth the following commodity groups slowed from the previous month: carpentry materials (1.2% from 1.3%); plumbing materials (0.6% from 0.9%); and miscellaneous construction materials (1.2% from 1.5%).

The retail price reflects construction activity on the level of small contractors or DIY home repair, and prices here are typically higher than those obtained by large contractors because of their ability to buy in bulk.

  “Clearly with the relaxed quarantine measures, there is already gradual recovery in the construction sector,” Security Bank Corp. Chief Economist Robert Dan J. Roces said in a Viber message.

“Should construction continue to recover, then demand for materials will increase in lockstep with it,” he added.

Mr. Roces also said that there is a possibility that typhoons in late October and early November can push the index higher for November, led by basic categories such as carpentry and plumbing materials.

Typhoons Rolly (international name: Goni), the world’s strongest tropical cyclone so far this year, and Ulysses (Vamco) traversed Luzon earlier this month causing extensive damage in parts of Metro Manila and all over Luzon.

Last week, President Rodrigo R. Duterte declared a state of calamity over Luzon. — Marissa Mae M. Ramos

Intellectual property infringement complaints spike during lockdown

THE Intellectual Property Office of the Philippines (IPOPHL) said it received 135 intellectual property violation reports in the first nine months, which include the lockdown period, exceeding the total compiled during the five years to 2019 by 4%.

The majority of the complaints involved counterfeiting and piracy, accounting for 32% and 30% respectively. The rest involve other instances of intellectual infringement such as the use of similar marks and the unauthorized use of copyrighted work.

Total violation reports from consumers and complaints from intellectual property rights holders this year surpassed the 129 in the five years to 2019, IPOPHL said in a statement Thursday.

Most counterfeiting and piracy violations are done online. Almost 70% were done through Facebook, while 17% were done on top ecommerce websites like Shopee and Lazada, and 4% were on YouTube.

The agency has acted on 108 or 80% of the complaints, while the remaining 27 are being processed.

IPOPHL has warned the public that violators may view the crisis as an opportunity to advance their illicit trade given the supply and demand imbalance during the lockdown. Shoppers are increasing their dependence on online shopping and entertainment, IPOPHL said, where the transactions are less subject to monitoring.

IPOPHL is consulting with e-commerce platforms and some rights holders to develop guidelines on taking down posts with illicit content.

“Specifically, through the agreement, a notice and takedown system and procedure will be developed by online platforms to more swiftly address reports on counterfeit goods and pirated materials being sold online. We hope it will be signed soon this year once the remaining issues are resolved,” IPOPHL Director General Rowel S. Barba said.

He added that the office will soon finalize its new rules to broaden its online monitoring and prevent intellectual property rights violators from making a sale.

“The primary objective of the revision is to add more disruptive enforcement functions to the IEO (IP Rights Enforcement Office), such as clearly including online counterfeiting and piracy in its coverage,” he said. — Jenina P. Ibañez

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