LISTED PROPERTY developer SM Prime Holdings, Inc. has listed its retail bonds on Friday, marking the country’s first bond listing for 2021 at the Philippine Dealing & Exchange Corp. (PDEx).
In a regulatory filing, the company said it held a virtual listing ceremony of its latest fixed rate bonds, series M and N, which offered P10 billion – or an aggregate principal amount of P5 billion, and an oversubscription option of P5 billion.
The interest rate of SM Prime’s peso-denominated series M bond is at 2.4565% due in 2023, while series N is at 3.8547% due in 2026.
“This issuance is the second drawdown from the company’s P100 billion debt securities program under shelf registration registered with the Securities and Exchange Commission,” the disclosure said.
The joint issue managers for the offering are BDO Capital & Investment Corp. and China Bank Capital Corp. The two companies also join BPI Capital, First Metro Investment Corp., and SB Capital Investment Corp. as joint lead underwriters for the issuance.
In a previous disclosure, SM Prime Chief Finance Officer John Nai Peng C. Ong said the proceeds of the retail bonds would fund the company’s expansion plans. The company’s series M and N retail bonds received a rating from the Philippine Rating Services Corp. of “PRS Aaa,” which is the highest rating assigned by the local debt watcher.
As of September 2020, SM Prime posted a 48% decline in its consolidated net income to P14.4 billion. The company’s consolidated revenues fell 29% to P60.7 billion.
On Friday, shares in SM Prime at the stock exchange rose 2.95% or P1.10 to close at P38.35 apiece. — Revin Mikhael D. Ochave
Land Bank of the Philippines (LANDBANK) has set aside P153 million to hire at least 1,000 contract workers, who will help newly-registered national ID holders open their first bank accounts.
LANDBANK President and CEO Cecilia C. Borromeo said representatives from the bank will help man the registration centers for the national ID, known formally as the Philippine Identification System (PhilSys). The contract workers will assist registrants without bank accounts in opening one, the Department of Finance (DoF) said in a statement Friday.
The bank will offer its Mastercard prepaid card to unbanked PhilSys registrants for free. The cards can be used to withdraw or transfer funds, and can receive government cash assistance should the ID holders be eligible. They will eventually be usable in contactless fare systems the government is planning to implement.
LANDBANK’s agent banking partners, including cooperatives, associations, small and medium-sized enterprises and other private entities will also help process bank account applications and conduct the mandatory Know-Your-Customer (KYC) data gathering.
Ms. Borromeo said the bank has also teamed up with 136 local government units (LGUs) so far.
The Philippine Statistics Authority (PSA) has said the 82% of the 10.5 million Filipinos that were pre-registered for the national ID last year did not have bank accounts.
Helping the unbanked open accounts is one of the goals of the national ID, aiding potential depositors in meeting stringent bank ID requirements. Joining the banking system is expected to promote inclusiveness, by putting new account holders on the path to developing a credit history.
Bank accounts tied to the national ID are also expected to facilitate government cash aid distribution.
Ms. Borromeo said physical distancing and health protocols will continue to be observed in the registration centers during the pandemic.
“Our participation in the PhilSys registration is in line with the Duterte administration’s financial inclusion agenda of bringing unbanked Filipinos to the financial mainstream, and is in response to (Finance Secretary Carlos G. Dominguez III’s) directive for us to accelerate our shift to digital-based transactions to prepare us for the new economy,” she was quoted as saying in a report to the DoF. — Beatrice M. Laforga
The peso closed stronger Friday after inflation hit 4.2% in January, raising the prospect of possible monetary action that would jolt interest rates out of their recent lows.
The peso strengthened by one centavo to P48.07 against the dollar Friday, its high for the day, according to the Bankers Association of the Philippines.
The peso opened at P48.10 and hit a low of P48.11.
The currency was stronger by one centavo from its P48.08 close a week earlier.
Dollar volume dropped to $606 million Friday, from $1.162 billion Thursday.
The peso was at its strongest level since the P47.99 close on Sept. 23, 2016, according to Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.
He attributed the stronger peso to the market’s reaction to the higher-than-expected inflation reading released Friday morning.
“Inflation data at the two-year high of 4.2% could increase the odds of any upward adjustment in the policy rate from the current record low of 2%,” he said via Viber.
“However, the recent spike in inflation has been largely due to higher food and transportation prices, or mostly supply-side factors or reduced supply, amid signals that any change in monetary policy could only happen if there are second-round inflation effects in terms of higher prices of other affected products and services,” he added.
The Philippine Statistics Authority (PSA) reported Friday that headline inflation rose to 4.2% last month, against the 3.5% in December and 2.9% in January 2020.
January was the fourth consecutive month of rising inflation, coming off a level of 2.5% as recently as October. It was also the highest reading since the 4.4% posted in January 2019.
The January inflation reading exceeded the 3.6% median estimate of a BusinessWorld poll of 16 economists last week, beating even the high forecast of 4.1%. The official target range for the year is 2-4% as set by the Bangko Sentral ng Pilipinas (BSP).
The PSA said prices of the most heavily-weighted element of the consumer basket – food and non-alcoholic beverages – rose 6.2% in January from 4.8% the month prior.
The category has a 38.98% weighting in the Philippine consumer price index basket, the lagest by far.
Mr. Ricafort added that the peso appreciated after manufacturing data showed a smaller year-on-year contraction towards the end of 2020. It also received a boost from the gains in the stock market, where the benchmark Philippine Stock Exchange Composite index (PSEi) rose 1.7% to 7,109.18.
The peso also strengthened ahead of US payrolls data for January on Friday evening Philippine time, a trader said via e-mail. — Beatrice M.Laforga
Stocks ended higher on Friday as investors continued bargain hunting despite the higher inflation figure for January, analysts said.
The benchmark Philippine Stock Exchange index (PSEi) improved 115.43 points or 1.67% to end at 7,019.18, while the broader all-shares index climbed 51.47 points or 1.24% to close at 4,216.80.
On Friday, the Philippine Statistics Authority reported headline inflation accelerated 4.2% in January, faster than 3.5% in December and 2.9% in January 2020.
“Investors brushed aside the latest CPI (consumer price index) print and continued with the bargain hunting following overseas markets,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said on Viber.
He added that equities in regional markets were able to extend their three-day rally on Thursday, as they were boosted by “good corporate earnings and positive economic data.”
For First Metro Investment Corp. Research Head Ma. Cristina S. Ulang, equities were “oblivious” to the higher inflation. She said in a text message that the rollout of coronavirus disease (COVID-19) vaccines would “augur well for economic reopening”
AAA Southeast Equities, Inc. Research Head Christopher John Mangun said this week’s performance showed that there were “many investors who were willing to pick up shares as they anticipated higher valuations in the longer term,” despite the latest inflation numbers.
“The PSEi ended the week higher, wiping out almost (all) of its losses from the week before. It gained more than 400 points to end slightly above the 7,000 key level despite the disappointing inflation numbers that just came out,” he told BusinessWorld in an e-mail.
US stocks ended higher, while the majority of Asian stocks logged gains on Friday, except for MSCI AC Asia Pacific index.
Back home, all of the sectoral indices ended Friday’s session with gains.
Financials increased by 19.51 points or 1.36% to 1,450.63. Industrial rose by 125.87 points or 1.39% to 9,171.22. Holding firms improved 119.44 points or 1.70% to 7,165.39. Services inched up 0.08 points or 0.005% to 1,497.82. Mining and oil rose by 113.72 points or 1.31% to 8,812.25.
Property stocks posted the biggest gains at 82.30 points or 2.34% to 3,600.77. “The (PSEi’s) close at above 7,000 was due to a rush of buying at the close, which may correct in the coming trading week. Meanwhile, all sub-indices closed in the black with the property and holding sub-indices leading with the strongest gains,” China Bank Securities Corp. Research Director Rastine Mackie D. Mercado said via e-mail.
Advancers beat decliners, 123 versus 76, with 56 left unchanged.
Value turnover stood at P8.80 billion with 19.76 billion issues switching hands, lower than the previous session’s P10.42 billion with 36.20 billion issues. Net foreign buying reached P51.51 million, compared with P471.61 million that left the market on Thursday.
“The week’s close at 7,019.18 signals another attempt towards the 7,300 levels in the near-term. This comes after strong support emerged at the 6,700/6,800 levels,” BDO Unibank, Inc. Chief Market Strategist Jonathan L. Ravelas said in a mobile message. — Angelica Y. Yang
Lopez-led geothermal leader Energy Development Corporation (EDC) and the country’s premiere state-university, the University of the Philippines (UP), have formally continued its partnership as they inked the memorandum of agreement (MOA) for the expanded Biodiversity Conservation and Monitoring Program (BCMP) III on 29 January 2021.
The continued partnership between EDC and UP, which started more than a decade ago, was formally sealed in a ceremonial MOA signing via Zoom, led by EDC President and Chief Operating Officer Richard B. Tantoco and UP Diliman Chancellor Dr. Fidel R. Nemenzo.
Tantoco said EDC has been an institution that has faith for UP and that it will continue to support the University in its endeavors especially for its science-based activities that aim to protect and conserve the environment.
“Now that we have such a propitious relationship, I am happy to extend and expand what we have into the future. Many discoveries have been made by our partnership and many more “best practices” will be developed, [and it] all started with chance encounters. And if we continue to work collaboratively, to conserve and understand the biodiversity that surrounds us, I cannot emphasize enough how much good our partnership can bring as we continue to look for ways to help Mother Earth,” Tantoco said.
The BCMP I and II, which started in 2008 and 2012, respectively, have so far resulted in greater knowledge and understanding of the rich flora and fauna that thrive within the EDC’s geothermal facilities including the Golden Flying Fox in Negros and Bicol, the tarsiers in Leyte, and the Philippine Eagle in Mt. Apo. For its third phase, which is scheduled to be implemented starting this year until 2024, the program will focus on Biodiversity Metrics, Flagship Species Initiative, Flora Conservation, Botanical Treasures and the establishment of the UP-Institute of Biology (UPIB)-EDC Biodiversity Hub.
Nemenzo, for his part, acknowledged the fruitful collaboration between the two institutions and recognized the benefits it brought not only to EDC but also to UP. Through the partnership, according to Nemenzo, UP was able to contribute to its mandate as a research and public service university. The UP Chancellor said he is looking forward to the productive years of the partnership.
Nemenzo, likewise, paid tribute to the pioneering works of three outstanding scientists — the late Dr. Perry Ong, Dr. Leonard Co, and Dr. Daniel Lagunsad — who paved the way for the partnership between UP and EDC and whose works are still of valuable contribution to the development of biodiversity conservation and monitoring.
“In the next year of this partnership, our hope is to honor what these pioneers have built and expand BCMP’s contribution to EDC, [to] UP, the science of biodiversity conservation and the wider Philippine society in general. Maramingsalamat, EDC, for your faith and trust in UP. I am excited to see the fruits of this collaboration and look forward to at least four more years of partnership between UP and EDC,” Nemenzo said during the ceremonial MOA signing held via Zoom.
EDC’s over 1,499MW total installed capacity accounts for 20% percent of the country’s total installed RE capacity while its 1,204.67MW geothermal portfolio accounts for 62 percent of the country’s total installed geothermal capacity and has put the Philippines on the map as the 3rd largest geothermal producer in the world
Creative enterprises in the Philippines are motivated by social causes and view their interests as intertwined with society and the environment, according to a report by the British Council in the Philippines.
“Artists will create, innovators will disrupt, and creative entrepreneurs will build business—but they can only thrive and survive long-term if the ecosystem allows them to do so,” said Malaya D. del Rosario, British Council’s head of arts and creative industries, in a statement. “This means having policies that support them, access to new knowledge and skills, allies that promote the artistic quality of their work, and international connections that allow them to find collaborators and push boundaries. Our commissioned reports and the insights coming out of these studies provide the evidence needed to support the sustainable development of this sector.”
Here are a few case studies from the report:
Cebu-based Emottoons, an animation studio specializing in 2D animation services outsourcing, hires talented non-college graduates, including former bakery workers and habal-habal (motorcycle for hire) drivers who have proven to be good illustrators. Studio founder Philmore “Emot” G. Emodia, who started his enterprise in 2009, continues to develop local artists through his business despite lucrative job offers overseas. Mr. Emodia encourages the undergraduates in his team to pursue college degrees, and reminds everyone to be “on top of their game.”
Furniture designer Kenneth C. Cobonpue, who established his own brand upon his return home in 1996 from Germany to manage his mother’s business, oversees nine artisan subcontractors. The brand’s business model integrates these backyard furniture producers, who have worked for companies in Cebu for decades, into its value chain. To address their subcontractors’ lack of tools and experience, the company helps in the purchase of needed equipment and provides additional training and raw material supplies.
Voyage Studios, an independent content-creating and film production studio, links filmmakers and artists from the provinces through outreach and technical education activities. This initiative, supported by the National Commission on Culture and Arts, helps province-based filmmakers who previously had no access to platforms to concretize their ideas into actual products.
The British Council’s study focused on film, advertising, animation, game development, and design industries. A series of three focused group discussions were conducted in February and March 2020 by international consultancy Nordicity in Metro Manila, Baguio City, and Cebu City, which were identified in previous research as key cities in the creative economy and strategic for national development due to their size, pre-existing creative sector ecosystems, young population, and connectivity.
Meanwhile, based on the 2020 Global Innovation Report, the Philippines ranked 10th in creative goods exports, scoring above Indonesia, Cambodia, and Laos, but below Thailand, Malaysia, and Vietnam. — Patricia B. Mirasol
Labong Lodge No. 59 is a Masonic Lodge here in the Philippines. It is a lodge originally founded in 1892 during the Spanish regime by Don Pedro Camus of Malabon. During the American occupation, it was reorganized by Surgeon Jose M. Raymundo (also from Malabon) together with other prominent personalities of Malabon and Navotas. In 25 January 1921, it was given its charter and joined the federation of lodges of the newly formed Grand Lodge of The Philippine Islands established by 3 American Lodges: Manila Lodge No. 342, Cavite Lodge No. 350 and Corregidor Lodge No. 386.
Labong is a Tagalog word meaning “bamboo shoot”. The name of the town where the lodge was originally located, Malabon in then Rizal province, is derived from “malabong” meaning a place where shoots of young bamboo abound. The Lodge currently is located in Plaridel Masonic Temple at 1440 San Marcelino Street, in Ermita, Manila.
When Jose Rizal, a mason himself, was exiled in Dapitan, one of the entities who sent help was Labong. The lodge, according to its records, sent 80 pesos to Rizal in December 1892.
Among the notable members of the LodgewereGen. ArtemioRicarte; Engr. Pedro Siochi; Senator MelecioArranz; BishopsIrineo de Vega and Pablo Tablante; MayorsRufino Hernandez, SinforosoPascual,Eleuterio de Jesus and Francisco Barican; Judges Genaro Tan Torres, Guillermo Romero and Angel Lazaro.
Among its current members of businessmen, lawyers, marketing professionals, athletes, military and police officers, Police Deputy Director General and Chief of Joint Task Force COVID-Shield, Guillermo Lorenzo T. Eleazar is the most frequently seen in public.
Labong Lodge No. 59 is currently headed by WM Stevenson Ang, a businessman from Binondo. During the start of the COVID-19 pandemic, together with members of the Lodge, he headed Labong in its distribution of face shields, face masks, personal protective equipment (PPE), gallons of alcohol, water, and food to frontliners in more than 10 hospitals around Metro Manila.
For the sole and obvious reason of the virus, it will be a safe, simple and socially distanced celebration come 25 January among the brethren of Labong Lodge No. 59.
Filipinos believe that voting with their wallet has more immediate impact than participating in elections, according to a report by Red Havas, the public relations arm of communications agency Havas Ortega.
“The immediacy of that influence is just faster as a consumer. In two seconds, you can influence a friend not to get a plastic straw for her drink, unlike with elections where you have to wait for months and years to see results,” said Gian S. dela Cruz said, Havas Ortega Group’s communications strategist, on consumer influence.
A majority (81%) of respondents said that that they wield more influence on society as consumers than as voters. The report also found that prosumers realize that brands and governments have to step up if a more sustainable future for the planet is to be realized. (“Prosumer” is a term coined by futurist Alvin Toffler for an individual who is both a provider/producer and consumer.)
Prosumers are today’s leading influencers and market drivers, according to Red Havas. They are the first to try out new things and are the ones consulted by peers for recommendations when it comes to brands, ideas, philosophies, and beliefs. What prosumers are doing today, mainstream consumers will likely be doing in the next 6 to 18 months. The study, conducted concurrently across 28 countries between February and March 2020, showed that 93% of Filipino prosumers think it is their responsibility to make a difference in the world.
“The questionnaire was developed globally but consulted locally. The study was fielded in such a way that it talks about attitudes rather than demographic filters,” said Mr. dela Cruz. “It is agnostic of demographic filters.”
A STRONG STAND ON SUSTAINABILITY
Eco-activism in particular has gained traction especially among Gen Zs. Prosumers have strong opinions about sustainability and environmental responsibility, with air pollution (93.8%), water pollution (89.6%), and global warming (87.5%) among the top concerns cited. To face the challenges of hyper-consumption, prosumers try to reuse rather than repurchase, be self-sufficient, and consume local to lower the impact on the environment. The resurgence of thrift shops among local Instagram accounts is a manifestation of these trends.
Inasmuch as much can be done on the individual level, the study’s respondents also acknowledged the role of businesses and governments to pull the levers of change. Prosumers feel that the government should exercise its responsibility to lead sustainability movements, and should step in with measures to improve waste management (95.8%), and ban single-use plastic (87.5%) as well as unnecessary packaging (85.4%).
Brands are also expected to be responsible enough to enforce sustainability measures that are meaningful, transparent, and authentic. More than nine-tenths (92%) think sustainability has to be mandatory and not merely used as a publicity move.
In campaigning for change, Mr. dela Cruz advised: “Educate, not hate. Come from a space of education and not aggression.” — Patricia B. Mirasol
AutoDeal.com.ph; the Philippines’ no.1 online automotive marketplace finished 2020 in high spirits despite a 40% drop in annual vehicle sales as more consumers shift to the platform as a means of facilitating their vehicle purchase online.
“We experienced more than 70% growth in our partnerships with vehicle brands last year; helping both automakers and dealers to reach and transact with consumers at a very efficient cost. At the same time we helped consumers to stay safe by enabling them to do the vast majority; and in some cases, all of the transactions online through our platform with minimal physical contact at the dealership,” states AutoDeal.com.ph Chief Executive Officer, Daniel M. Scott.
Now coming to its seventh year of operation, AutoDeal solidified its position as the market leader by achieving 30,000,000 annual website visits* and by expanding its overall partnership network to more than 75% of all new car dealers in the country. Notable new partnerships last year included prominent brands like Mitsubishi, Suzuki, Isuzu, Kia, and Chery.
In total, the AutoDeal platform helped generate more than 25,000 customers in 2020. Accounting for just over 10% of the total market but claims that sales alone may be a lagging indicator of the role that digital plays in the overall purchase journey.
“We are pleased with the sales that we were able to contribute, which accounted between 2% to 20% of our partners’ total retail sales. However, we believe that the influence of marketplaces and digital mediums, in general, should also take into consideration how consumers use platforms like ours to make digitally-influenced decisions early on in the car-buying process. As more budget-conscious consumers come online, AutoDeal will become essential at fulfilling multiple legs of the car buying journey to help consumers find the best deal.”
“2020 has highlighted the importance of a digital strategy and how that will fit together in an omnichannel experience over the coming years. As we move into 2021, we will continue to provide ways to bring continuity between the manufacturers and dealers, reduce friction in the sales process and increase transparency across organizations, ultimately elevating the customer’s experience and increasing the financial return for our partners.” Added Scott
Looking forward, AutoDeal is expecting that digital transactions will continue to help drive the recovery of the Philippine automotive industry and is continuing to invest in systems and processes to provide more convenience for consumers while at the same time enabling dealers to leverage its digital platform with increased efficiency.
The company’s efforts are being reciprocated by an industry that is becoming increasingly receptive to digital commerce. In 2020, the response time experienced by consumers after requesting a full quotation from a dealer on AutoDeal accelerated by sixty-six minutes; with its top 50 fastest operating partners being able to furnish the required information within thirty minutes during business hours. The platform was also able to pilot an online payment gateway that enabled a portion of its consumers to facilitate the reservation phase of the buying process across its platform.
As online replaces many of the traditional practices done at the showroom, digital marketplaces offer the perfect destination for brands and dealers to attract in-bound consumers with high purchase intent at relatively low cost. As the market continues to recover, AutoDeal promises to build more ways to help dealers efficiently manage high inquiry volumes without the need to increase overheads. Through continued innovations in our platform’s lead-management service; we aim to generate a win-win outcome for both consumers and dealerships.
Have you ever thought of getting a life insurance but each time you try to get one, you’re gripped with the fear of lapsing your policy due to long payment period?
It’s time that you consider an affordable alternative – a renewable term life insurance.
Among all life insurance products available nowadays, from savings, investments, and protection products, term life is a protection-focused plan that offers the high-value death benefit at a lower premium compared to other types of life insurance.
“The Covid-19 pandemic is an eye-opener for a lot of our countrymen, who realized that they needed a buffer, a safety net just in case something happens to them due to the virus,” said Insular Life (InLife) Chief Marketing Officer Gae Martinez.
The Covid-19 pandemic has amplified the importance of having affordable life insurance coverage especially among the vulnerable and the underserved. To fill this need, InLife created an affordable protection-focused plan to help Filipinos create a credible financial plan that anyone with income can afford.
Martinez explained that term life is a solution for first-time insurance buyers but most useful for breadwinners who have always wanted the protection of life insurance but may not have available funds for the regular whole life plans right now.
“What the pandemic has taught us is that insurance must be part of everyone’s financial plan in order to avoid catastrophic financial loss in the family in the event of the death of the breadwinner,” added Martinez.
InLife’s newest offering of term life insurance called “Basic Secure” is one way to address this issue and it comes in two variants: 5-years renewable and 10-years renewable plan.
Under this plan, a twenty-five-year-old applicant can be insured for P1,000,000.00 for only P23 a day or P8,400 per year.
“Basic Secure can also be converted to a regular life plan or to a variable investment-linked policy in the future once the plan holder finds that he or she is ready for it,” added Martinez.
Another advantage of starting with Basic Secure is that its renewability and convertibility features eliminate the need for any later proof of insurability. This is a useful feature especially for people who may have otherwise been declined when getting an insurance for the first time at an advanced age.
InLife’s Basic Secure can be issued from age 18 until age 70 for the 5-year plan or until 65 years old for the 10-year plan and can be paid monthly, quarterly, semi-annually, or yearly.
To know more of the features and benefits of InLife Basic Secure talk to an InLife financial advisor by visiting www.insularlife.com.ph/basic-secure.
THE government scaled down its ambitious goals to reduce poverty and unemployment by 2022, as the coronavirus pandemic reversed any gains that were made in recent years. Read the full story.
The World Bank estimated nearly three million Filipinos may have slipped into poverty last year due to the coronavirus pandemic. — PHILIPPINE STAR/MIGUEL ANTONIO N. DE GUZMAN
THE government scaled down its ambitious goals to reduce poverty and unemployment by 2022, as the coronavirus pandemic reversed any gains that were made in recent years.
The updated Philippine Development Plan 2017-2022 (PDP), released on Thursday, showed the government is now targeting to cut the poverty rate to 15.5-17.5% this year.
The initial goal was to bring down poverty incidence to 14% by 2022. Before the pandemic hit, the Philippines appeared on track to achieve this target as poverty incidence, or the proportion of Filipinos whose incomes fell below the poverty line, fell to 16.7% in 2018, from 23.5% in 2015.
The World Bank estimated nearly three million Filipinos may have slipped into poverty last year.
The National Economic and Development Authority (NEDA) reviewed the targets under the PDP in light of the impact of COVID-19 on the economy.
“The immediate socioeconomic impact of the pandemic in 2020 is substantial. This will most likely spillover to 2021 and 2022. Taking this into consideration, some targets for 2021 and 2022 have been revised downwards. Since the updating of the PDP happened in the second half of 2020, the targets for 2020 were maintained,” the report read.
The government now aims to bring down the unemployment rate to 7-9% this year and 2022. The jobless rate averaged 10.2% in 2020 as businesses laid off workers during the height of the strict lockdown.
The previous goal was to reduce the unemployment rate to 3-5% by 2022.
In a press briefing on Thursday, Acting Socioeconomic Secretary Karl Kendrick T. Chua said the pandemic’s blow on the labor market should improve next year, but the overall unemployment rate will remain elevated given the expected surge in new workers when the first batch of graduates that completed the K to 12 program join the workforce.
Among the youth, the unemployment rate is expected to spike to 14.5-16.5% this year and further to 20.5-22.5% in 2022. The previous goal was to reduce the youth jobless rate to 8.6% this year and 8% by 2022.
The NEDA estimated youth jobless rate went down to 9.2% last year from 2019’s 9.8%.
“We know that it will still be a very difficult labor market situation but this one is also to tell us that we will need more social protection and it will still be a challenging employment situation. We think for 2021 and even 2022, it’s still about transforming the workforce so that they are ready for the challenges in the new normal,” NEDA Undersecretary Rosemarie G. Edillon said.
Under the updated PDP, the government abandoned the previous target of a 7-8% annual economic growth through 2022. Instead, it adopted a lower target range of 6.5-7.5% until next year.
Ms. Edillon clarified that the 8-10% growth the Development Budget Coordination Committee (DBCC) projected in December meant the government is likely to beat the revised target under the PDP.
The target growth rate for gross national income (GNI) per capita was also downgraded to 5-6% from the initial goal of 5.2%.
At the same time, the government kept its goal of attaining the upper middle-income status “by 2022 or earlier.”
Latest World Bank data showed the Philippines remained as a lower-middle income economy in 2019 with a GNI per capita of $3,850.
Meanwhile, the target food inflation rate was retained at 2-4%.
The government still aims to improve its ranking in the Human Development Index (HDI) and Global Innovation Index (GII) in the next two years. It hopes to land on the top one-third in the GII ranking.
Last year, the Philippines saw its HDI score increase to 0.718 and moved up four places to 50th out of 131 economies in the GII.
“The medium-term goal remains the same: by the end of 2022, more Filipinos will be closer to their AmBisyon of living a matatag, maginhawa, at panatag na buhay. The health and resilience of the Filipinos will be prioritized in the medium term as the foundation to achieving this aspiration,” the report said.
Ms. Edillon said the remaining two years of the Duterte administration will be focused on building economic recovery and resilience.
To boost resilience, she said the PDP laid out five major programs under the new normal, namely: health system improvement, food security, learning continuity, digital transformation, and regional development through the Balik Probinsya Bagong Pag-asa Program.
“The updated PDP also identified reforms to increase FDI (foreign direct investments), ease human capital constraints, improve government over the management of resources and the environment, and expand market linkages for MSMEs (micro-, small- and medium-sized enterprises),” she added.
Further, she said the updated roadmap included an reintegration program to assist overseas Filipino workers and their families.
PDP is the country’s first medium-term roadmap out of the four plans towards the long-term vision of Ambisyon 2040 where the Philippines is dominantly a middle-income society and no one is poor.
“Twenty years until 2040 is a long time and many challenges may come at any time. It is important to quickly recover those lost ground and ensure sustainability of the gains by building resilience then get back on track towards Ambisyon 2040,” Ms. Edillon said.
During the press conference, former NEDA chief Ernesto M. Pernia said the government should ramp up spending to support the economy’s recovery. — Beatrice M. Laforga
