Peso strengthens on stimulus progress
The peso appreciated slightly against the dollar on Thursday on news that proposed stimulus programs here and in the United States are making progress.
The local unit closed at P48.045 per dollar on Thursday, inching up by 2.1 centavos from Wednesday’s finish of P48.066, data from the Bankers Association of the Philippines showed.
The peso started the session at P48.06 against the greenback. It depreciated to as low as P48.07 and peaked at P48.04 per dollar.
Dollars traded rose to $674.59 million on Thursday from $499.86 million the day prior.
The peso inched up over positive news on developments over proposed stimulus measures in the Philippines as well as in the US, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.
“The peso exchange rate has been steady to slightly stronger versus the US dollar on continued progress on the nearly $900-billion US stimulus package and the Federal Reserve pledged to maintain its massive asset purchase program until it sees substantial further progress in employment and inflation; Fed scrapped its previous pledge to keep buying over coming months,” Mr. Ricafort said in a Viber message on Thursday.
Reuters reported that deliberations over a US stimulus program may have advanced after House of Representatives Speaker Nancy Pelosi invited other lawmakers to meet on Tuesday to come up with a deal to be enacted within the week.
Mr. Ricafort said the market also reacted as one of the Philippine government’s recovery measures have been ratified by the Congress and inched closer to enactment.
He was referring to the Financial Institutions Strategic Transfer Act bill that allows banks to offload their bad loans to asset management companies as these are expected to rise amid a prolonged coronavirus pandemic. The bill will have to be signed by President Rodrigo R. Duterte to become a law.
UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said via Viber that the peso’s movement was also affected by the higher inflow of remittances from overseas Filipino workers (OFWs).
OFW remittances increased for the second straight month in October, rising by 2.9% to $2.747 billion, central bank data showed.
Mr. Ricafort said the peso may trade within P48-48.10 versus the greenback on Friday while Mr. Asuncion expects it to range from P48.04 to P48.08 per dollar. — B.M. Laforga
Shares inch down as investors pocket their gains
By Revin Mikhael D. Ochave, Reporter
PHILIPPINE SHARES inched lower on Thursday as investors booked profits and remained wary of rising coronavirus disease 2019 (COVID-19) cases around the world.
The Philippine Stock Exchange index (PSEi) dropped 1.68 points or 0.02% to end at 7,298.02, while the broader all shares index fell 0.16 point to 4,350.29.
Philstocks Financial, Inc. Research Associate Claire T. Alviar said the market ended lower due to profit taking.
“Traders took to profit taking amid strong psychological resistance at 7,300 level, along with the overvaluation of the PSEi in terms of price to earnings ratio which is around 21x, higher than the five-year average of around 18x.” Ms. Alviar said in a mobile phone message.
“The last minute bargain hunting did not save the bourse from the negative territory, but losses were thinner at close,” she added.
For AAA Southeast Equities, Inc. Research Head Christopher John Mangun, the local bourse ended flat as investors remain confident in the market, which helped offset those who pocketed their gains.
“The PSEi ended flat on last-minute buying as the majority of investors remain confident and are willing to stay in the market, evident in the above average trading volumes that we continue to see,” Mr. Mangun said in an e-mail.
Timson Securities, Inc. Head of Online Trading Darren Blaine T. Pangan said in a mobile phone message that the market declined as investors remain cautious on the global COVID-19 infection count.
According to the Johns Hopkins University’s COVID-19 dashboard, the global COVID-19 case count as of Dec. 17 was at 74.21 million cases.
It said the United States still had the most COVID-19 cases at 16.96 million, followed by India at 9.96 million, Brazil at 7.04 million, and Russia at 2.71 million.
Back home, the majority of sectoral indices at the PSE ended in red territory on Thursday. Property declined 34.31 points or 0.92% to 3,693.7; industrials retreated 51.82 points or 0.54% to 9,477.91; financials shrank 8.09 points or 0.53% to 1,506.22; and mining and oil went down 23.45 points or 0.24% to 9,538.98.
Meanwhile, services improved 10.37 points or 0.67% to 1,537.49, and holding firms rose 50.05 points or 0.66% to 7,560.99.
Value turnover on Thursday reached P9.26 billion with 32.64 billion issues switching hands, lower than the P9.31 billion with 117.64 billion issues seen during the previous session.
Decliners bested advancers, 117 versus 105, while 49 names ended unchanged.
Net foreign selling amounted to P739.83 million on Thursday, an increase from the net P501.32 million that left the market on Wednesday.
“As we draw closer towards the end of the week, we may have to see if the nearest support at 6,700 holds, with immediate resistance lying at the 7,500 area,” Mr. Pangan said.
DoH expects fresh COVID-19 infection surge this holiday
THE DEPARTMENT of Health (DoH) expects a fresh surge in coronavirus infections during the holidays as people violate quarantine rules and health standards.
Cases in Metro Manila could peak to 4,000 daily by next month, Health Undersecretary Maria Rosario S. Vergeire said, citing estimates by a research team from the University of the Philippines (UP).
“Cases in the national capital region may reach upwards of 4,000 cases per day, which may overwhelm our health system to upwards of 80% utilization by the end of January if we do not act aggressively to halt the transmission now,” she told an online news briefing.
Guido David, a mathematics professor from UP and part of the OCTA Research team, said 4,000 cases is at the “higher end of the projection.
He noted that the capital region had posted 2,000 cases daily when it was under a strict lockdown. “We don’t want to reach that level obviously,” he said at the same briefing.
Ms. Vergeire cited a similar infection surge in Canada and the US after thanksgiving celebrations.
“There is a likelihood of this surge in the Philippines in the coming holidays and we should take these threats seriously and act immediately,” she said.
Ms. Vergeire said the infection rates in Metro Manila, Ilocos, Cagayan Valley and the Cordillera Administrative Region have been rising.
The virus reproduction rate in the country and capital region was now more than 1 from 0.8, meaning a coronavirus patient could infect another person, she added.
She also said more than half of the cities in Metro Manila have experienced an increase in cases, while improvements for the rest have slowed.
The occupancy rate in hospitals was “low risk” at 36% nationally, but health authorities were preparing these for a potential surge.
Health experts last month urged the public to hold activities outdoors and limit interactions during the holidays. Celebrations should also be limited within the household.
The government this week issued an order requiring face masks and shields in public.
DoH reported 1,470 coronavirus infections on Thursday, bringing the total to 454,447.
The death toll rose by 17 to 8,850, while recoveries increased by 633 to 419,902, it said in a bulletin.
There were 25,695 active cases, 84.8% of which were mild, 6.9% did not show symptoms, 5.4% were critical, 2.7% were severe and 0.3% were moderate.
Quezon City reported the highest number of new cases at 74, followed by Rizal at 64, Makati City at 58, Davao City at 55 and Quezon province at 46.
The agency said 11 duplicates had been removed from the tally, while three recovered cases were reclassified as deaths.
The coronavirus has sickened about 74.6 million and killed 1.7 million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization (WHO).
About 52.4 million people have recovered, it said. — Vann Marlo M. Villegas
Duterte to sign 2021 budget bill by end of the year, Palace says
PRESIDENT Rodrigo R. Duterte will sign next year’s spending plan into law by the end of the month at the latest, according to the presidential palace.
The President would sign the measure either on Dec. 23 or 28, his spokesman Harry L. Roque told a news briefing on Thursday. He did not say whether the palace had received the ratified copy of the budget bill.
Last week, lawmakers ratified the P4.5-trillion spending plan for next year, which seeks to support economic recovery after a record recession amid a coronavirus pandemic.
The Palace earlier said Mr. Duterte would thoroughly review the measure for any lines that would need to be vetoed.
The bicameral conference committee increased the allocation for the health sector by 42% to P287.47 billion. The funds will go to the Department of Health (DoH), Philippine Health Insurance Corp. and healthcare personnel, among others.
Under the budget, P72.5 billion will be set aside for the implementation of a COVID-19 vaccine program. Of this, P2.5 billion is under the DoH, while the remaining P70 billion consists of unprogrammed funds.
The amount is lower than the Senate-approved P83-billion allocation for vaccines, which included P8 billion under DoH and P75 billion in unprogrammed funds for vaccine procurement, distribution and storage.
Lawmakers had worked to avoid a repeat of the 2019 budget scenario that led to the reenactment of the 2018 budget for more than four months.
The delay stemmed from an impasse between congressmen and Budget officials, and later with the Senate.
The 2019 budget was also reenacted for less than a week in 2020, after President Rodrigo R. Duterte signed the 2020 budget only on Jan. 6.
The largest share of the 2021 budget goes to the education sector with P708.18 billion, in line with the Constitution. The education sector’s budget, however, was 6.12% lower than initially proposed.
The second-largest chunk goes to the Department of Public Works and Highways (DPWH) with P694.82 billion, up by 4.12%, as the government boosts infrastructure projects to drive the sluggish economy.
Economic output slumped by 11.5% in the third quarter after a 16.9% contraction in the second quarter pushed the country into its first recession in nearly three decades.
Lawmakers also increased the budget of the Labor department by 33.1% to P36.6 billion and the Department of Social Welfare and Development by 3.19% to P176.65 billion. The Transportation department’s budget was cut by 39.1% to P87.44 billion. — GMC
10 more P2P routes for provincial buses opened — regulator
THE LAND Transportation Franchising and Regulatory Board (LTFRB) on Thursday said 10 more routes would be opened for more than 260 provincial point-to-point (P2P) buses that will travel outside Metro Manila starting Dec. 21.
Separate routes from Clark, Pampanga to SM North EDSA, NAIA Terminal, Lubao, Dagupan, and Subic would be opened, the agency said in a statement.
Routes from NAIA/Parañaque Integrated Terminal Exchange (PITx) to Baguio City; separate routes from Batangas City to Ortigas and PITx; and separate routes from Lipa City to Ortigas PITx would also be opened.
The LTFRB said roadworthy public utility vehicles with valid certificates of public convenience would be allowed to operate.
Public utility vehicles that have sought an extension of their expired certificates and have personal passenger insurance policy will also be allowed to travel.
Provincial point-to-point buses need to get special permits for inter-regional routes outside Metro Manila, the LTFRB said. — Arjay L. Balinbin
Nationwide round-up (12/17/20)

Duterte blames regulator for toll mess
PRESIDENT Rodrigo R. Duterte on Wednesday night warned toll officials to improve their service amid public complaints against cashless toll transactions or step down.
The President in a televised speech blamed the Toll Regulatory Board for glitches in radio frequency identification systems at toll gates that had caused traffic congestion at major expressways.
He called the regulator incompetent for failing to do a trial run. “The system was not tested thoroughly, which translates into something like incompetence.”
The government adopted a cashless toll payment system at about 200 toll gates after some workers got infected with the coronavirus.
Senators hit the regulator for failing to penalize toll operators for their faulty implementation of the cashless toll scheme since 2017.
“You have the power but you’re not using it,” Senator Sherwin T. Gatchalian told a Senate hearing on the RFID system. — Gillian M. Cortez and Charmaine A. Tadalan
House deputy speakers balloon to 32
THE HOUSE of Representatives now has 32 deputy speakers, just two months after Speaker Lord Allan Q. Velasco assumed the leadership.
Congressmen on Wednesday — the last day of sessions this year — elected Cavite Rep. Abraham Tolentino and Davao City Rep. Isidro Ungab as deputy speakers.
The deputy speakership is one of the chamber’s top posts. A deputy speaker can vote in all committees.
Some of the elected deputy speakers had helped oust Taguig City Rep. Alan Peter Cayetano, Mr. Velasco’s predecessor. — Kyle Aristophere T. Atienza
80,000 more OFWs to return
MORE than 80,000 migrant Filipino workers are expected to come home early next year as countries continue to reel from the impact of a global coronavirus pandemic.
“We are expecting over 80,000 to come home,” Hans Leo J. Cacdac, Overseas Workers Welfare Administration (OWWA) chief, told a news briefing on Thursday. “That’s for the first half of next year.”
More than half-a-million Filipinos have come home after being displaced by the pandemic, International Labor Affairs Bureau (ILAB) Director Alice Visperas told a separate briefing.
The government had helped more than 370,000 out of 550,000 overseas Filipino workers who got displaced to return to their home provinces, she said.
About 350,000 returning migrant workers also received a one-time cash aid of P10,000 each. — Gillian M. Cortez
NEDA bats for pilot physical classes
THE NATIONAL Economic Development and Authority (NEDA) on Thursday said a government plan to pilot-test face-to-face classes in January would help children learn more and boost the economy in the long run.
“We are glad as health systems improve and as we relax quarantines, we are now going to pilot face-to-face learning starting January,” Socioeconomic Planning Secretary Karl Kendrick T. Chua told a news briefing. “It will have a big impact on the economy because children will learn more and become more productive.”
“But we have to do it safely and slowly,” Mr. Chua said.
More than a thousand out of 61,000 schools in the country have been nominated to take part in the pilot run, Education Secretary Leonor Briones said on Wednesday. — Beatrice M. Laforga
Regional Updates (12/17/20)
Mactan airport chief suspended
MACTAN-CEBU International Airport Authority (MCIAA) General Manager Steve Y. Dicdican has been ordered suspended for six months for allegedly violating the Anti-Dummy Law.
Ombudsman Samuel R. Martires barred him from entering his office during his suspension to preserve evidence according to a copy of the order.
Mr. Dicdican was accused of letting foreign officials of GMR Megawide Cebu Airport Corp. (GMCAC) manage the airport. It is a consortium of Filipino company Megawide Construction Corp. and GMR Infrastructure Limited.
The National Bureau of Investigation (NBI) on Dec. 4 said it had filed a complaint before the Justice department against Mr. Dicdican, other airport executives, and GMCAC officials for violating the same law.
In 2014, the Transportation department and the airport authority awarded the airport’s management to GMCAC under a 25-year concession for P14.4 billion for the airport’s expansion.
The complainants said GMCAC’s actions went beyond the terms of the concession and the MCIA was operated and managed by foreigners.
MCIAA workers were set to release a manifesto of support for Mr. Dicdican, spokesperson Mary Ann Dimabayao said by telephone.
Mr. Dicdican had questioned the hasty filing of the complaint, saying the concession deal was awarded years before he joined the airport authority. — Kyle Aristophere T. Atienza
Anti-logging teams formed
THE ENVIRONMENT department has ordered one of its officials to set up four teams to boost monitoring of illegal logging operations in Cagayan Valley, Bicol and the Upper Marikina river basin, it said on Thursday.
This comes after lawmakers blamed illegal logging operations for recent floods that submerged many parts of Luzon after it was hit by a typhoon last month.
The government must go after illegal logging agents because transporters and buyers of undocumented forest products are often linked to these unlawful operations, Environment Secretary Roy A. Cimatu said in a statement.
Each team is made up of representatives from the agency, Interior and Local Government department, Defense department, Armed Forces, and Philippine National Police, the agency said. — Angelica Y. Yang
River dredging to start in January
THE GOVERNMENT will start its dredging project for Cagayan River next month, which will widen the river and prevent heavy floods.
Several areas of the region will be prioritized, Environment Secretary Roy A. Cimatu told a news briefing on Thursday. Mr. Cimatu sought the widening of the river after the Cagayan Valley region experienced heavy floods last month.
Priority areas include Aparri, Camalaniugan, Lallo, Gattaran, Sto. Niño, Alcala, Amulung, Iguig, Solana, Tuguegarao City and Enrile towns. — Gillian M. Cortez
Big-ticket project list up for revision by year’s end

THE government’s flagship infrastructure project list — big-ticket priority works undertaken via the “Build, Build, Build” program — will be revised by year’s end to favor those more likely to make significant progress, based on projected construction timetables and funding availability, according to the National Economic and Development Authority (NEDA).
In a briefing Thursday, NEDA Undersecretary Jonathan L. Uy said the list of 104 infrastructure projects are under review to check for their readiness for implementation. He added that the new list might be ready before the year ends.
“We are now recalibrating the 104 infrastructure flagship projects. I hope by the end of this year we will have finalized a list, it would appear that we are now (at) about 100 projects (with) some additional ones we proposed for this particular update,” according to Mr. Uy, who also heads NEDA’s investment programming group.
“The important point is work (and) procurement (are) continuing… the disbursements are a bit late, and the extension of the 2020 budget to 2021 will ensure that all of these expenditures may be ramped up,” he added.
The government has revamped the list several times after identifying an initial 75 in mid-2019. The government has been prioritizing so-called “shovel-ready” projects as its time in office runs out, and also as a means of injecting money more rapidly into the economy to help it recover.
The overall program is estimated to cost P4.13 trillion, funded via foreign loans or aid, public-private partnerships, and budget funds.
Currently, 26 of the 104 priority projects are in the approval stages and are being reassessed for whether they can be substantially started or completed within the administration’s term, NEDA Acting Secretary Karl Kendrick T. Chua said at the briefing.
“If they will be able to go through the approval and final preparation process in the next few weeks, then they will remain. If they will not be achieving those objectives, then they may be parked, but we are also considering a number of other projects,” Mr. Chua said.
“We are constantly reviewing the list and it is likely that our further review will include some of the major flood-control projects as addition because of our recent experience (with typhoons),” he added.
Details on the specific projects dropped or included in the updated list were not provided during the briefing.
Infrastructure spending hit P508.5 billion in the 10 months to October, down 18.4% year on year, according to the Department of Budget and Management (DBM). In October, infrastructure and other capital outlays fell 30.6% to P57.1 billion.
Mr. Chua attributed the lower spending to the year-earlier base, at a time when the government was implementing a catch-up spending plan in the second half.
He said construction works are also continuing to face delays due to the disruptions caused by the late-year typhoons, as well as the dearth of transport for construction workers.
The government’s economic team early this month increased its expenditure target for infrastructure by 5% to P825 billion in 2020 from the reduced target in July. Despite the increase, this is still 16.6% lower than the original P989-billion pre-pandemic spending goal.
Capital outlays in the 10 months, which include equity injected into state-owned firms and transfers to local governments for their infrastructure projects, were down 11.8% year on year to P663.2 billion. The tally accounts for 80% of the P825-billion target for the year.
The DBM remained optimistic that the government can hit its revised target this year to help the economy recover faster from the recession. — Beatrice M. Laforga
Cap on residential rent hikes to remain in force until end of 2021

THE cap on residential rent increases will remain in force for another year, to the end of 2021, according to the National Human Settlements Board (NHSB).
In resolution 2020-04 published Wednesday, the NHSB said a 2% cap on rent increases applies to those paying monthly rent of up to P4,999.
The maximum rent hike is set at 7% for those paying monthly rent of between P5,000 and P8,999, and 11% for those paying between P9,000 and P10,000.
The guidelines apply to residential units occupied by the same lessee. If the unit is vacated, the lessor may set the initial rent for the next lessee.
The power to cap rent increases is conferred by the Rent Control Act of 2009, or Republic Act No. 9653, and is designed to protect low-income housing tenants. The resolution also cited the “economic and financial difficulties” inflicted by the pandemic.
Student housing landlords cannot increase rent more than once each year. The regulation also cannot be applied to new residential units constructed after the approval of the resolution.
The rent control measure was extended in 2017, and was set to expire on Dec. 31, 2020.
The trade department earlier set guidelines for rent deferrals and prohibited the eviction of residential and commercial tenants unable to pay after the end of a prescribed grace period. — Jenina P. Ibañez
Investments board says food irradiation projects eligible for tax breaks
FOOD IRRADIATION has been included in the government’s list of preferred investment activities eligible for tax breaks, the Board of Investments (BoI) said.
In memorandum circular 2020-018 signed Dec. 4, the BoI said it is amending guidelines under the 2017 Investment Priorities Plan as part of an overall effort to retain and create jobs during the public health crisis.
“The board recognizes the significance of private sector investments in commercial food irradiation facilities as a support service for the country’s agriculture sector in mitigating post-harvest losses and increasing the sector’s supply value chain,” the BoI said.
Food irradiation extends the shelf life of products.
The memorandum added that food irradiation projects applying to register with the BoI must have a permit from the Science and Technology department’s Philippine Nuclear Research Institute, where applicable.
Before availing of an income tax holiday, the registered business must submit a copy of its license to operate from the institute or other relevant agencies.
The directive takes effect immediately, having been published Thursday.
Malacañang last month approved the 2020 Investment Priorities Plan, which granted tax holidays to projects that address the public health crisis. The incentive plan covers manufacturers making personal protective equipment and those creating jobs in the countryside. — Jenina P. Ibañez
Competition for work to intensify as first K to 12 batches leave school
COMPETITION for jobs will be tight in the next few years with workers displaced by the pandemic to be joined in the employment search by the first full batches of K to 12 graduates, the Department of Labor and Employment (DoLE) said.
In a briefing Thursday, Labor Assistant Secretary Dominique R. Tutay said the earliest K to 12 batches will be leaving school within the next few years, adding to the “pressure” of the job search.
She said 2021-2022 will be the “first full batch for K to 12,” following a number of transition years during which the graduating cohort was smaller than usual.
The department estimated Thursday that 3.8 million workers were displaced this year, including those who were retrenched, permanently or temporarily displaced and underemployed.
The DoLE said it expects conditions to improve with the COVID-19 vaccine rollout imminent, due to the improvement in “business confidence.”
Separately, Labor Secretary Silvestre H. Bello III said minimum wages for domestic workers need to improve, and proposed a national minimum wage of P6,000 for such workers. By law, wages are set through regional wages and productivity boards and vary by region.
“I think it is reasonable to have P6,000,” he said.
He added that the wages given to household workers are too small and insufficient for those raising families. He added wages should be uniform regardless of the area. — Gillian M. Cortez
