IMF lifts global growth forecast for 2021, still sees ‘exceptional uncertainty’

January 27, 2021 | 12:13 pm

WASHINGTON — The International Monetary Fund (IMF) on Tuesday raised its forecast for global economic growth in 2021 and said the coronavirus-triggered downturn last year—the biggest peacetime contraction since the Great Depression—would be nearly a full percentage point less severe than expected.

The global lender said multiple vaccine approvals and the start of vaccinations in some countries had boosted hopes of an eventual end to the pandemic that has now infected nearly 100 million people and claimed the lives of more than 2.1 million globally.

But it warned that the world economy continued to face “exceptional uncertainty” and new waves of coronavirus disease 2019 (COVID-19) infections and variants posed risks, and global activity would remain well below pre-COVID-19 projections made one year ago.

IMF chief economist Gita Gopinath said the pledge of US President Joseph R. Biden, Jr., to fund the World Health Organization’s COVAX vaccine initiative marked “a very big step” to containing the pandemic and ensuring more equitable distribution of vaccines.

“Much more will be needed, because as we can see, given the mutating virus, that this is not a problem that’s going away anytime soon,” Ms. Gopinath told a news conference.

“There is still a tremendous amount of uncertainty,” she told Reuters in a separate interview. “We know that the health crisis is not over until it’s over everywhere.”

Ms. Gopinath said the global economy could gain $9 trillion between 2020 and 2025 if faster progress could be made in ending the health crisis, and it was clearly in the interest of advanced economies to help poorer countries recover.

“There’s a complete economic sense to do this, and do it right now,” she told Reuters.

The IMF estimates that close to 90 million people are likely to fall below the extreme poverty threshold during 2020–2021, with the pandemic wiping some out $22 trillion in projected output through 2025 and reversing progress made in reducing poverty over the past two decades.

Ms. Gopinath said advanced economies were recovering more quickly, and urged countries with means to continue to offer poorer nations aid, low-interest loans, and debt relief.

“There is still much, much to be done, but we’re certainly at least in positive growth territory this year, as opposed to last year,” she told the news conference.

VACCINE-POWERED UPTICK

In its latest World Economic Outlook, the IMF forecast a 2020 global contraction of 3.5%, an improvement of 0.9 percentage points from the 4.4% slump predicted in October, given stronger-than-expected momentum in the second half of last year.

It predicted global growth of 5.5% in 2021, 0.3 percentage points better than in October, citing expectations of a vaccine-powered uptick later in the year and added policy support in the United States, Japan, and a few other large economies.

It said the US economy, the largest in the world, was expected to grow by 5.1% in 2021, an upward revision of 2 percentage points attributed to carryover from strong momentum in the second half of 2020 and the benefit accruing from about $900 billion in additional fiscal support approved in December.

The outlook would likely improve further if the US Congress passes a $1.9 trillion relief package proposed by Mr. Biden, Ms. Gopinath said, forecasting a 5% boost over three years if the package is approved by the US Congress.

China’s economy is expected to expand by 8.1% in 2021 and 5.6% in 2022, compared with the October forecasts of 8.2% and 5.8%, respectively, while India’s economy is seen growing 11.5% in 2021, up 2.7 percentage points from the October forecast, after a stronger-than-expected recovery in 2020.

The Fund said countries should continue to support their economies until activity normalized to limit persistent damage from the deep recession of the past year.

Low-income countries would need continued support through grants, low-interest loans, and debt relief, and some countries may require debt restructuring, the IMF said. — Andrea Shalal/Reuters

Cavite cancels award for China Communications’ $10-billion airport project

January 27, 2021 | 11:06 am

MANILA – A Philippine province has cancelled its award of a $10 billion airport deal south of the capital, among the biggest projects involving a Chinese firm under President Rodrigo Duterte who has pursued warmer ties with Beijing since taking office in 2016.

China Communications Construction Co (CCCC) and Philippines company MacroAsia Corp won the auction in 2019 to partner with the Cavite provincial government to upgrade the Sangley airport.

“The notice of selection and award for the Sangley Point International Airport Project issued on 12 February 2020 was cancelled,” MacroAsia told the stock exchange on Wednesday. (https://bit.ly/3cfWZbQ)

Cavite Governor Juanito Victor Remulla told Reuters the consortium’s documentation was “deficient in three or four items”.

“We saw it as a sign they were not fully committed to the project,” Remulla said.

The Cavite government would start new negotiations for a private sector partner to pursue the airport project, he said in a Facebook post.

In December 2019, the CCCC-MacroAsia consortium were the sole bidders for a $10 billion airport just outside the capital, one of two big projects that aim to take pressure off the four terminals of Manila’s notoriously packed international airport.

CCCC was among the Chinese firms blacklisted by the United States in August for their roles in constructing and militarising artificial South China Sea islands.

Remulla said the blacklisting had nothing to do with the cancellation.

China’s CCCC was not immediately available for comment.

MacroAsia’s shares sank as much as 19% to a three-month low in the first 10 minutes of trade following the cancellation. — Reuters

BusinessWorld Insights: C Suite in Digital Transformation

January 27, 2021 | 9:10 am

With the quarantine restrictions still in place due to the coronavirus disease 2019 (COVID-19) pandemic, digitalization is the “now” normal. But what are the constraints that keep management and organizations from maximizing the benefits of going digital? How can a company address these challenges?

Catch the second part of BusinessWorld Insights’ Leadership Series with the topic, “Embracing Digitalization: C-Suite in DigitalTransformation”, with speakers Marivic Españo, chairperson and chief executive officer of P&A Grant Thornton; David Almirol, Jr., CEO and founder of MultiSys; and Gwendolyn Kelley, first vice-president, chief technology officer, head of information technology division of InLife; with moderator Leo Uy, research head of BusinessWorld.

#BUSINESSWORLDINSIGHTS Leadership Series is presented by InLife; with the support of Management Association of the Philippines, British Chamber of Commerce of the Philippines, Bank Marketing Association of the Philippines, Financial Executives Institute of the Philippines, Philippine Association of National Advertisers, Philippine Chamber of Commerce and Industry, and The Philippine STAR.

Slower recovery seen for PHL this year

January 27, 2021 | 12:34 am

By Luz Wendy T. Noble, Reporter

THE Philippines will likely see a slower pace of recovery this year, as the International Monetary Fund (IMF) and a United Nations (UN) think tank trimmed their growth forecasts amid uncertainty over the vaccine rollout and continued restriction measures.

The IMF cut its gross domestic product (GDP) forecast for the Philippines to 6.6% this year, from the initial forecast of 7.4% given in October. The economy is expected to grow by 6.5% in 2022.

“The projected rebound in 2021 and 2022 is primarily driven by a renewed infrastructure investment push and a gradual recovery of the private sector, supported by accommodative monetary policy and global recovery,” IMF Representative to the Philippines Yongzheng Yang said in an e-mail to BusinessWorld.

The IMF’s 2021 GDP estimate is well-within the government’s 6.5-7.5% target growth while the 2022 projection is less optimistic than the 8-10% estimate given by economic managers.

Mr. Yang identified several downside risks to the growth outlook, including the ongoing lockdown restrictions and uncertainty over the government’s COVID-19 vaccination program.

“We expect that social distancing and some forms of restrictions will persist this year,” he said, despite noting the country has already seen a “steady flattening of the infection curve” since September last year.

The Health department reported 1,173 new COVID-19 infections on Tuesday, bringing the total to 516,166, with active cases at 30,357.

“Like in most other countries, vaccination is a gradual process and progress is subject to uncertainty,” he said.

The government is aiming to start immunization next month, with the goal to inoculate 70 million people within the year.

This year, IMF’s Mr. Yang said headline inflation in the Philippines may average 3.1%, which is slower than the 3.2% forecast by the Bangko Sentral ng Pilipinas, but quicker than the 2.6% in 2020. Its forecast of 3% inflation in 2022 is faster than the central bank’s 2.9% projection.

The IMF said ASEAN-5 economies — comprising Indonesia, Malaysia, the Philippines, Thailand, and Vietnam — are projected to grow by 5.2% this year, slower than the previous forecast of 6.2%. On the other hand, the 2022 estimate was upwardly revised to 6% from 5.7%.

“The strength of the recovery is projected to vary significantly across countries, depending on access to medical interventions, effectiveness of policy support, exposure to cross-country spillovers, and structural characteristics entering the crisis,” the IMF said.

WEAK GROWTH
At the same time, the UN Department of Economic and Social Affairs (DESA) said it expects the Philippines to grow by 6.2% this year, lower than its earlier 6.3% forecast.

This after the Philippines likely saw the worst contraction in Southeast Asia in 2020 due to the pandemic.

In its World Economic Situation Prospects 2021 report released on Tuesday, UN DESA said the Philippine GDP likely shrank by 8.8% last year, a reversal from the 6.2% growth forecast it gave in January 2020.

Official GDP data will be released on Thursday. A BusinessWorld poll showed a median 9.5% contraction for the entire 2020.

“While Singapore, Thailand, and Vietnam flattened the curve relatively quickly and with shorter lockdowns, Indonesia, Myanmar and the Philippines are still struggling with high daily levels of new infections. In the latter group, a more prolonged period of limited mobility and weak sentiments will depress consumer spending and private investment, thus constraining the pace of recovery,” it said.

This year, all Southeast Asian economies are expected to post growth, led by Vietnam (7.8%), followed by Malaysia (6.6%), Myanmar (6.5%) and the Philippines.

The UN DESA said the Philippines’ likely 8.8% GDP contraction was the worst economic performance among 11 economies in Southeast Asia in 2020.

The Philippines lagged behind Thailand (-6.6%), Singapore and Timor Leste (-6.5%), Malaysia (-4.8%), Indonesia (-1.6%), and Cambodia (-1.4%). Four countries likely expanded last year, namely Vietnam (3.4%), Myanmar (2.3%), Brunei (1.2%), and Laos (0.5%).

The UN DESA expects headline inflation to ease to an average of 2.1% this year from 2.6% in 2020, and pick up by 2.8% in 2022.

GLOBAL RECOVERY
In its World Economic Outlook Update released on Tuesday, the IMF said global economic activity will remain below the pre-pandemic levels this year, even as recovery gets under way.

For this year, the IMF said the global economy will grow by 5.5%, faster than the 5.2% earlier estimate. The growth forecast for 2022 is kept at 4.2%.

“Much remains to be done on the health and economic policy fronts to limit persistent damage from the severe contraction of 2020 and ensure sustained recovery,” it said. — with Beatrice M. Laforga

Manila falls in 2021 list of top real estate investment destinations

January 27, 2021 | 12:33 am

MANILA dropped two spots to 19^th in a ranking of city investment prospects in the Asia-Pacific for 2021, a joint report from the Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC) said. Read the full story.

Manila’s appeal as property investment site declines

January 27, 2021 | 12:33 am

Manila dropped two spots to 19th in a ranking of city investment prospects in the Asia Pacific for 2021, the joint report from the Urban Land Institute and PricewaterhouseCoopers showed. — PHILIPPINE STAR/MIGUEL ANTONIO N. DE GUZMAN

MANILA dropped two spots to 19^th in a ranking of city investment prospects in the Asia-Pacific for 2021, a joint report from the Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC) said.

The 2021 Emerging Trends in Real Estate report released on Tuesday said that Manila’s prospects as a real estate investment destination have dropped over recent years. The Philippine capital ranked as high as third in 2017, then dropped to 18^th a year after.

Ranking 19^th out of 22 cities in the region, Manila was classified as having “fair” investment prospects this year.

ULI said Manila had fallen in the rankings due to “Southeast Asia’s reputation as a high-risk play in times of global recession.”

Topping the list this year are Singapore, Tokyo, and Sydney.

Overall scores in 2021 are not too different from the previous year, ULI said, likely due to the cities’ effective pandemic containment measures, and profitable investment opportunities.

Real estate investors said their top concerns for this year include the impact of the pandemic on property values, economic growth, trade or geopolitical tensions, and vacancy rates.

In the ULI report, Manila ranked 13^th in the city development prospects ranking and 20^th among cities most likely to see rental growth this year.

ULI said that there are lower scores overall for city development as developers weather “questionable” demand during a region-wide recession.

Future office demand, it added, will be decentralized to reduce commutes, which means satellite cities like Clark could signal some real estate growth in the Philippines.

“The Philippines is a good example of this, with moves afoot to establish new satellite cities, such as Clark, on the periphery of Manila, as a way to relieve the demographic stress,” ULI said.

ULI Philippines Chairwoman Jean Jacquelyn de Castro noted the decline in the country’s investment prospects ranking over recent years.

“Building back investor confidence will require stakeholders to work closely with the government to improve the attractiveness of Philippine real estate as an investment class,” she said.

Real estate services firm Santos Knight Frank Chairman and Chief Executive Officer Rick M. Santos said that the Philippines can have real estate opportunities in logistics, data centers, and industrial sectors.

“With megatrends such as e-commerce growth, decentralization outside Metro Manila, and continued outsourcing and BPO (business process outsourcing) expansion in the Philippines, we expect to see a soft rebound in the real estate market as the economy gradually recovers,” he said. — Jenina P. Ibañez

Typhoons likely hurt farm output growth

January 27, 2021 | 12:32 am

By Revin Mikhael D. Ochave, Reporter

THE agriculture sector’s growth likely slowed in the fourth quarter, after a string of strong typhoons devastated rice-producing areas.

Glenn B. Gregorio, director of the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), said the agriculture sector will post 0.58% growth in the fourth quarter, slower than the 0.7% growth in the third quarter. However, this will be a slight improvement from the 0.1% drop in farm output in the fourth quarter of 2019.

Mr. Gregorio said the crops subsector is seen to grow by 3.66%, while the fisheries subsector is estimated to rise by 1.69%.

“However, comparable to the previous quarters, the livestock and poultry sectors are estimated to experience negative growth rates at -6.37% and -3.45%, respectively,” Mr. Gregorio said.

Several typhoons, namely, Quinta, Rolly, Ulysses and Vicky, swept through the country in the last three months of 2020. Data from the Department of Agriculture showed the combined crop damage caused by Quinta and Rolly reached P8.46 billion, while losses from Ulysses amounted to P6.72 billion, and damage from Vicky totaled P129.8 million.

In a mobile phone message, Roy S. Kempis, a professor at Pampanga State Agricultural University, said the agriculture sector’s slow growth in the fourth quarter was due to the massive flooding that damaged crops and other farm produce.

“The growth of the agricultural sector in the fourth quarter of 2020 is slower than the third quarter of 2020, and is seen to improve 0.25% to 0.75%,” Mr. Kempis said.

Mr. Kempis said increased food consumption during the holiday season might have a positive effect for the farm sector, but is not enough to offset the typhoons’ damage.

“With recovery still ongoing in Luzon in the fourth quarter and then the weather disturbances in Visayas and Mindanao, the last quarter of 2020 could not be better than the third quarter,” he added.

In an e-mail interview, former Agriculture Undersecretary and current Bangko Sentral ng Pilipinas (BSP) Monetary Board member V. Bruce J. Tolentino said historical data show about 90% of typhoon damage takes place from July to December, with November being the most affected.

“The quarterly numbers are the result of artificially dividing the seasonal performance of crops. Most of the movements in these numbers are due to price fluctuations,” Mr. Tolentino said.

Rolando T. Dy, executive director of Center for Food and Agri-Business of University of Asia and the Pacific (UA&P), expected the farm sector to have declined by 2% in the October to December period.

“Typhoons and floods are setbacks for crops, while hogs are afflicted with African Swine Fever (ASF). I see the sector posting -2% for the fourth quarter,” Mr. Dy said in a mobile phone message.

During a virtual briefing on Tuesday, Agriculture Secretary William D. Dar said they are hopeful that the PSA’s result will turn out positive.

The Philippine Statistics Authority (PSA) is scheduled to release agricultural production data today.

Mr. Dar previously said he is hoping that the agriculture sector could grow by 1.5% by the end of 2020, lower than the previous 2% target.

According to PSA data, the farm sector accounts for about a tenth of the country’s gross domestic product (GDP) and around a quarter of the national workforce.

BIR collected P7.2 billion from POGOs in 2020

January 27, 2021 | 12:31 am

THE Bureau of Internal Revenue (BIR) collected P7.18 billion in taxes from Philippine Offshore Gaming Operators (POGOs) last year, even as some offshore companies reportedly left due to the tighter tax rules.

In a statement, BIR Commissioner Caesar R. Dulay said taxes from POGOs were 12% higher than the collection in 2019, although he did not provide the exact figure.

In 2018, the BIR collected P2.8 billion in taxes from POGOs.

BIR Deputy Commissioner for Operations Arnel SD. Guballa attributed the higher POGO tax collections last year compared with 2019 to the additional revenues generated through the 5% franchise tax.

“The increase in tax collection in taxable year 2020 over 2019 is primarily due to the compliance in the payment of franchise tax by some POGO Licensees, which was made a prerequisite for the issuance of a BIR clearance to allow them to resume partial operations during the ECQ (enhanced community quarantine) periods,” Mr. Guballa said in a text message on Tuesday.

The government began its campaign against tax-dodging POGOs and their service providers in 2019. It set deadlines for POGOs to secure Tax Identification Numbers (TINs) for their employees and remit withholding taxes.

In 2020, the BIR started collecting a 5% franchise tax after Republic Act 11494 or the Bayanihan to Recover as One Act (Bayanihan II) changed the basis of the tax rate to gross bets amid alleged cheating when computing their net winnings.

Earlier this month, the Supreme Court issued a temporary restraining order (TRO) against the BIR, preventing it from collecting the franchise tax after 14 licensed POGOs questioned the new tax.

The BIR’s total collections reached P1.94 trillion last year, down 11% year on year but 15% higher than the P1.69-trillion revised target.

“It’s the first time that BIR went above its goal by 15%. The last time the BIR hit its goal was in 2001 and 2003, that was 17 years ago,” said Mr. Dulay in the statement. — B.M.Laforga

ERC readies report on Visayan Electric’s alleged high power rates

January 27, 2021 | 12:08 am

By Angelica Y. Yang

THE technical staff of the Energy Regulatory Commission (ERC) is set to complete by February its evaluation on whether the biggest power provider in the Visayas had charged “high electricity rates” in the area as alleged by a business group, an official of the agency said on Tuesday.

Floresinda G. Baldo-Digal, ERC commissioner-in-charge, said the regulator’s technical team is evaluating the letter sent by Visayan Electric Co., Inc. to explain its side.

“The explanation is currently under evaluation by our technical staff, they are targeting to present their recommendation to the Commission by next month,” Ms. Digal told BusinessWorld in a text message.

On Monday, Visayan Electric said it had responded to the ERC’s letter, but declined to disclose details of its explanation.

“Visayan Electric has already submitted its explanation to the ERC and we are waiting for ERC’s evaluation,” the company told BusinessWorld in an e-mailed response.

“We assure our customers that Visayan Electric is transparent in its dealings and processes and that the electric utility is committed to providing reasonably priced power in its franchise area,” it added.

On Jan, 4, the ERC directed Visayan Electric, the country’s second largest power utility, to explain why it bought power from Cebu Private Power Corp. at an average of P35.3852 per kilowatt-hour (kWh) for the January-October period.

The power generation rate hit as high as P1,470.90/kWh for September last year, it added.

In contrast, the utility’s average generation rate for Green Core Geothermal, Inc. was at P4.8922/kWh for the 10-month period, while those for Cebu Energy Development Corp. and Therma Visayas, Inc. were at P5.6821/kWh and P5.5584/kWh, respectively, the ERC said.

The regulator also said that at the Wholesale Electricity Spot Market, the average generation rate during the period was at P2.5946/kWh.

The ERC’s letter, a copy of which was obtained by BusinessWorld, directed Visayan Electric to explain the power firm’s generation charges during the subject billing period in relation to the least-cost principle called for under Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA).

The law mandates distribution utilities to supply power at the “least cost to its captive market, subject to the collection of retail rate.”

The ERC’s letter was addressed to Raul C. Lucero, president and chief operating officer of Visayan Electric.

It was prompted by a letter from the Central Visayas Regional Development Council, which endorsed to the ERC a letter from the Cebu Chamber of Commerce and Industry regarding the high electricity rates charged by Visayan Electric and alleged violation of Section 45 of EPIRA.

Earlier, Senator Sherwin T. Gatchalian said a refund should be in order if Visayan Electric’s alleged violations are proven.

“If it will be proven that [Visayan Electric’s] collection is not justifiable, they should return the excess to the consumers. It’s the mandate of the ERC to protect the interest of the public,” he said in a press release last week.

SM Prime sets interest rates for retail bond offering

January 27, 2021 | 12:07 am

PROPERTY developer SM Prime Holdings, Inc. has set the interest rate of its retail bonds due on 2023 at 2.4565%, while those due on 2026 at 3.8547%, it said in a regulatory filing on Tuesday.

The peso-denominated 2.5-year series M and the five-year series N retail bonds will be offered to investors from Jan. 25 to 29, after receiving the necessary permit from the Securities and Exchange Commission (SEC). They will be issued on Feb. 5.

SM Prime is issuing an aggregate principal amount of P5 billion for the two bonds with an oversubscription option of an additional P5 billion.

“The proceeds of the retail bonds will allow SM Prime to continue its expansion plans in its core business, which will further drive the company’s growth,” SM Prime Chief Finance Officer John Nai Peng C. Ong was quoted as saying.

According to SM Prime, the proposed issuance is the second drawdown from its P100-billion debt securities program under shelf registration with the SEC.

The company said Philippine Rating Services Corp. (PhilRatings) had given a rating of “PRS Aaa” for its series M and N retail bonds.

The rating is the highest assigned by PhilRatings and is given to long-term debt securities that have the smallest investment risk.

BDO Capital and Investment Corp. and China Bank Capital Corp. are the joint issue managers for SM Prime’s bonds. The two companies also join BPI Capital, First Metro Investment Corp., and SB Capital Investment Corp. as joint lead underwriters for the issuance.

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 Tuesday, shares in SM Prime at the stock exchange fell 1.31% or 50 centavos to close at P37.70 apiece. — Revin Mikhael D. Ochave

Greenergy signs deal with tech firm ITBS for e-platforms integration

January 27, 2021 | 12:06 am

ANTONIO L. Tiu-led Greenergy Holdings, Inc. on Tuesday said it signed a memorandum of agreement with technology company ITBS (Information Technology Business Solutions Corp.) to integrate their electronic platforms.

Greenergy’s payment platform ePitaka will be integrated with ITBS’ Know Your Citizen platform installed in various local government units, the listed company told the local bourse in a disclosure.

ePitaka was developed by Greenergy’s related parties.

The company’s agreement with ITBS has a term of three years. They can choose to renew the deal for another two years upon expiration of the original term.

According to its website, ITBS is a Filipino company with presence in Japan, Pampanga, Manila, Cebu, and General Santos. The technology firm provides end-to-end solutions for government and private entities.

Its research and development portfolio include artificial intelligence checkpoint solutions, airport ground operation monitoring solutions, behavioral analysis and transportation management solutions, and a disaster management system with artificial intelligence, among others.

Greenergy trimmed its losses to P15.15 million in the first nine months of 2020.

The listed firm’s losses were lower than the previous year’s P18.07 million.

The company said the coronavirus pandemic has “less significant impact” on its business.

“While management recognizes that the COVID-19 (coronavirus disease 2019) pandemic poses potential impact on the group’s activities in terms of risks related to exposures to industries severely affected by COVID-19, the related amount of financial effect cannot be reliably and reasonably determined or estimated,” it added. — Arjay L. Balinbin

Gov’t to exert more pressure on telcos — Roque

January 27, 2021 | 12:05 am

THE national government will exert more pressure on telecommunications firms to improve their services, Malacañang said on Tuesday.

Presidential Spokesperson Harry L. Roque, Jr. said President Rodrigo R. Duterte had agreed with the recommendation of the Department of Information and Communications Technology (DICT) that telco companies should continue to “shape up” to improve the internet speed in the Philippines.

“The President agrees with the recommendation of the DICT. It is certainly needed to continue the ‘shape up’ and to really focus on telecoms to ensure that their services will continue to improve,” he said in mixed English and Filipino during a televised press briefing.

Mr. Roque said Mr. Duterte had agreed that internet connectivity in the country should be at the same level of Vietnam and Thailand.

DICT Assistant Secretary Emmanuel Rey R. Caintic earlier said there was “no reason” for the government to stop pushing for better telecommunications services, after Malacañang reported that internet speeds had improved due to the construction of new communication towers and the installation of fiber optic lines across the country.

A total of 2,939 telco towers were built between July and December last year.

Citing a report by Ookla, an internet speed testing site, Mr. Roque earlier said mobile download speeds improved by 202.4% between July 2016 and December 2020, while fixed broadband speeds rose 297.47% during the same period.

Ookla measured fixed broadband speed at 31.44 megabits per second (Mbps) in December last year from 7.91 Mbps in July 2016. Meanwhile, mobile download speeds improved to 22.50 Mbps from 7.44 Mbps over the same period.

Mr. Duterte in July 2020 told telcos to improve their services “before December” or risk shutdown. — Kyle Aristophere T. Atienza