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MinDA partners with CMU, iFresh for agribusiness program

DAVAO CITY — The Mindanao Development Authority (MinDA) has teamed up with a Mindanao-based university and an agricultural trading firm for an agribusiness program focusing on poor and conflict-affected communities.

MinDA, in a statement, announced that it signed on Tuesday a memorandum of agreement with the Central Mindanao University (CMU) in Bukidnon and iFresh Corp. for the New Harmonizing Opportunities for People Empowerment (HOPE) Program.

Under New HOPE, MinDA aims to partner with various state universities and colleges for the development of training facilities on agribusiness, entrepreneurship, and financial literacy across Mindanao, while the private sector will assist in marketing and linking communities to local and international buyers.

The target beneficiaries are former rebel combatants, returning overseas Filipino workers, and victims of calamities such as the series of earthquakes last year.

“To sustain the peace and development gains of the Duterte administration, we have started these intervention programs to help transform war zones into economic development zones and deliver meaningful socio-economic interventions through access to livelihood opportunities,” said Secretary Emmanuel F. Piñol, chair of MinDA.

The MinDA-CMU-iFresh partnership involves the establishment of a facility for free range chicken propagation and processing, according to CMU President Jesus Antonio G. Derije.

Mr. Derjie said they are also planning to develop the site for agri-tourism with complete biosecurity measures.

“We are looking at this facility as a ‘chicken haven’, which will showcase local varieties of chicken in Mindanao,” he said.

Mr. Piñol also said that a business group from Qatar has already expressed interest in buying free range chicken from Mindanao.

To complement the New HOPE Program, MiNDA will also be implementing the Livelihood in Villages for Economic Upliftment (LOVE-U) project wherein those who have completed the trainings will be given capital assistance to start their agribusiness ventures.

“This is simple and practical agriculture. We need to give people the opportunity to raise chicken not just for food, but as a way to make a living,” he said. — Carmelito Q. Francisco

Entry of provincial buses in Davao City center to be limited with HPBS

PROVINCIAL BUSES will be restricted from entering the Davao City central area once the six new terminals are constructed alongside the rollout of the High Priority Bus System (HPBS). “The plan is also to limit these provincial buses from entering the city. Ngayon kasi ang lahat ng (Currently, all) provincial buses pumapasok sa (go into the) Davao City Overland Transport Terminal,” Assistant City Administrator Tristan Dwight P. Domingo said in a briefing last week. There will be three major terminals located in Toril, Calinan, and Bunawan, which are near the border areas, while three other smaller depots will be built within the city center. The construction of the bus terminals will be funded from a P650-million city government allocation.

‘WALKABLE CITY’ SURVEY
Meanwhile, the Philippine Statistics Authority (PSA) has given the go signal for a survey relating to the establishment of a “Walkable Davao City.” In a statement on Monday, PSA said the survey, proposed by the National Economic and Development Authority Regional Office-11 (NEDA-11) and to be conducted by Certeza Infosys Corp., is intended “to gather data that will be used to evaluate the value of walking and walkability in terms of the quality of walking conditions, the degree of walking safety, and comfort and convenience of walking in Davao City.” It will cover three project sites — Ecoland/Matina, Lanang, and Poblacion — involving individual surveys, informant interviews, and focus group discussions. NEDA 11 will use the resulting walkability model in Davao City for the development of “walkable spaces” in other cities in the Davao Region. The survey results are expected to be released in April this year. — Maya M. Padillo

Preparing for waste management plan presentation 

ORMOC MAYOR Richard I. Gomez (standing) rehearses his presentation on the city government’s 10-year Solid Waste Management Plan on Wednesday in preparation for today’s actual run before officials of the Department of Environment and Natural Resources (DENR). Representatives of 40 local government units are presenting their respective waste management plans in a DENR-led activity to be held in the city. Ormoc opened its 1.8-hectare sanitary landfill in 2012, and the current government is considering a waste-to-energy project as a future alternative.

Nationwide round-up

PhilHealth officials face complaint over alleged inaction on anomalous OFW contributions

PHILSTAR

PHILIPPINE HEALTH Insurance Corp. (PhilHealth) officials are facing a complaint before the Office of the Ombudsman for alleged inaction over anomalous transactions reported to them. The case was filed by lawyer Harry L. Roque, Jr. and Ken P. Sarmiento, a former PhilHealth employee. The complainants said the failure of the agency’s officials to “act and provide resolution to the anomalous transactions made known to them” caused P16.58 million worth of “undue injury to the government, PhilHealth and OFW (Overseas Filipino Workers)-PhilHealth members.” The respondents include former regional vice-president Dennis S. Mas; former Officer-in-Charge (OIC) for the Office of the Chief Operating Officer Ruben John A. Basa; and OIC vice-presidents Narisa J. Sugay and Gilda Salvacion A. Diaz. They are accused of dereliction of duty, grave misconduct, gross neglect of duty, and conduct prejudicial to the best interest of the service. The complaint stems from 224 questionable PhilHealth official receipts (POR) that were discovered by the Philippine Overseas Employment Administration (POEA), the complainants said. PORs are used to inquire on the status of the OFW-member’s coverage. After the PORs failed the verification procedures, Mr. Sarmiento drafted 15 Affidavit Complaints and submitted these to the Anti-Fraud Division of the National Bureau of Investigation (NBI). “The Affidavit Complaints argued that the falsification of 224 PORs and possibly 868 other PORs were committed by a syndicate consisting of both currently-employed and then-employed Liaison Officers of Hiring Agencies. These Affidavit Complaints have remained pending without any legal disposition since their filing,” part of the complaint said. “From the foregoing, it is clear that the Respondents acted with gross inexcusable negligence when they failed to act and respond to the anomalous transactions,” the complainants said. — Genshen L. Espedido

House committee postpones constitutional amendments voting

THE HOUSE of Representatives committee on constitutional amendments has postponed the voting on the proposed amendments to the Constitution to give lawmakers more time for discussions. “So we cannot say yet when it will be voted on because of the strong discussions. Everybody wants to participate and we would like to have that full discussion,” Cagayan de Oro Rep. Rufus B. Rodriguez, committee chair, told reporters at the sideline of the hearing on Wednesday. Mr. Rodriguez said the panel will further study the proposals of the Inter-Agency Task Force on Federalism and Constitutional Reform (IATF) and will give “each and every member” a chance to comment. “As I see it we are still on page four, so we have about more than 20 pages… so we will keep this really full discussion of every proposal of the IATF,” he said. Among the proposals are regulations on campaign funds, restricting political dynasties, anti-turncoatism or switching political parties, election of senators by region, five-year terms for congressional representatives and local officials, and the lifting of limitations on foreign investment. The committee’s approved proposals will be included in the report to be submitted for plenary debate. Mr. Rodriguez said they aim to have another hearing next week. — Genshen L. Espedido

Nation at a Glance — (02/20/20)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Nation at a Glance — (02/20/20)

Local pork industry takes hit with the African swine fever

It isn’t only Covid-19 that is sending jitters throughout the international community. The global pork industry today is feeling the strain of a health scare in the form of the African swine fever (ASF). In Indonesia, officials confirmed the first outbreak of the ASF in December, spurring fears that it could reach Australia and lead to stricter biosecurity measures. At least 30,000 pigs have died in the province of North Sumatra where the pig population is 1.2 million.

In the Philippines, the Department of Agriculture (DA) confirmed cases of the fever in Kalinga and Benguet this month, saying laboratory examinations from five areas in the Cordillera – Tanudan, Bulanao, and Tabuk towns in Kalinga, and Beckel (La Trinidad) and Camp 1 (Tuba) in Benguet – have tested positive. Davao Occidental, meanwhile, is under a state of calamity, with up to 10,000 pigs affected by ASF in some of its municipalities.

Don Marcelino, one of the towns in Davao Occidental, has already implemented a total ban on the transport and sale of hogs, all pork products, and by-products since January 31, after approximately 1,000 pigs died due to the disease. “Eight barangays within Don Marcelino ang naka-cordoned off para di kakalat ang disease (were cordoned off so that the disease will not spread),” Agriculture Secretary William Dar said in a media briefing.

Local pork industry takes a hit

The Philippines is the world’s 10th-largest pork consumer. It is also the world’s 7th-biggest pork importer. It comes as no surprise then that the local swine industry is one of the country’s most lucrative trades, worth Php 200 billion or US $5 billion and contributing 18.28% to the country’s agricultural output in 2015 – second only to rice.

This is why disease outbreaks cause serious economic and production losses. (Environmentalist and Best Alternatives Campaign founder Gregg Yan pegs the losses at Php 1 billion or US $20 million per month.) Once an animal contracts ASF, it has little chance of surviving coupled with a huge chance of spreading the virus to other animals. Affected animals are thus usually destroyed to prevent undue suffering and to contain the spread of disease.

Not a public health threat

The African swine fever is a viral disease which affects domestic and wild pigs. It can be spread through live or dead hogs, plus anything which has come in contact with tainted meat: knives, wastewater, and even an undisinfected worker’s hands. In fact, Marivic F. Hubac, Head Executive Assistant and ASF spokesperson of the Province of Davao Occidental, says that “our close contact with ASF-infected pigs are said to be the wide cause of its widespread.” Symptoms of the highly-contagious disease include high fever, vomiting, and diarrhea. There is no approved vaccine to this illness that kills about 80 percent of the pigs it infects.

Countries with confirmed cases are subject to international trade restrictions aimed at reducing the risk of introduction of the disease through trade. Because ASF only impacts pigs and not humans, it is therefore not a public health threat, according to the US Department of Agriculture. It cannot be transmitted to humans through contact with pigs or pork.

Mitigation measures

The Philippine Department of Agriculture (DA) and Bureau of Animal Industry (BAI) are attempting to stamp out the virus through improved biosecurity, quarantine, area-wide bans, and preventive culling.

In Davao Occidental – where a majority of the hog raisers are backyard and outdoor farms – the Governor has banned swill feeding, or the practice of feeding leftover food to pigs. There is also an ongoing ASF awareness campaign as well as a total lockdown on the movement of pigs and the distribution and/or sale of pork and processed pork products within the province. Hubac shares that owners whose pigs were affected by the DA’s protocol guideline (or those within a kilometer radius from the infected area) were advised to surrender their hogs to the barangay center for culling and proper disposal.

The Agriculture Department is paying Php 5,000 per head of culled pig, regardless of age, and is providing Php 30,000 worth of loans to the affected hog raisers.

Supply and demand

Isa Q. Tan, editor of Asian Pork Magazine, says the incidence of ASF has made the dynamics of supply and demand in the local pork industry pretty strange. While infected areas are limiting the movement of pigs, non-infected areas are enacting a pork and pork products ban as a preventive measure. This has resulted in an undersupply in the latter and an oversupply in the former.

Tan says the Metro Manila, Central Luzon, and Calabarzon areas, which together make up the biggest market for pork, have already been very much affected by ASF. “The losses have been staggering. While right now there seems to be enough supply of pork, from what I’ve been hearing this will not be the case a few months from now. Many farms have either lost their animals due to the disease or have been depopulating because they fear they would get hit by it and are cutting their losses short.”

Containment through biosecurity

The pressing concern now is the management, control, and containment of the virus. Biosecurity, or the methods that are used to stop a disease or infection from spreading from one person, animal, or place to others, is the main tool against ASF. It is not, however, universally implemented in the Philippines, even among commercial producers.

“There are rumors that ASF has spread to other parts of Mindanao. The biggest fear would be how ASF might affect GenSan, the biggest pork-producing region in Mindanao, and whose production is predominantly ‘exported’ to other provinces, particularly Cebu. Key production areas like Northern Mindanao and Davao City could also be affected,” Tan adds.

The Bureau of Animal Industry urges hog raisers to immediately report disease incidents to their respective Municipal, City or Provincial Veterinary Office or call the DA Crisis Management Task Force at 09951329339 (Globe) at 09208543119 (Smart).

Social Enterprises in the Philippines get a boost from Australia, UNDP, and PhilDev

The Innovation for Social Impact Partnership (ISIP) project held an Impact Boost Camp last January 3 to 7 across various locations in Metro Manila. ISIP is a project co-implemented by PhilDev and UNDP in the Philippines, with support from the Australian Embassy in the Philippines.

Thirty social enterprises (SEs) participated in talks and workshops on topics like impact management, business modeling, and design thinking, which were given by organizations such as Business Call to Action, Paymaya, and PricewaterhouseCoopers. The SEs were also able to pitch to investors from Manila Angel Investors Network, ICCP Ventures, xchange, and Vilgro.

“The Impact Boot Camp has shown us that there are a lot of promising social enterprises in the Philippines. Given the right support and access to funding, we believe that these enterprises can scale, grow their businesses and help eradicate poverty in the country,” said Paco Sandejas, Chairman at PhilDev.

Titon Mitra, UNDP’s country representative said they “believe that this will help create a sustainable stream of social enterprises in the country that will collectively contribute to the achievement of the Sustainable Development Goals.”

ISIP is now currently accepting applicants for the third batch of their Social Impact Accelerator, which will open in March. Participants of the boot camp are highly encouraged to apply.

Moody’s cuts PHL growth forecast

MOODY’S Investors’ Service has cut its growth forecast for the Philippines while also trimming its outlook for some Asian countries as some sectors are expected to take a hit due to the coronavirus disease 2019 (COVID-19) outbreak.

The debt watcher reduced its 2020 gross domestic product (GDP) growth forecast for the Philippines to 6.1% from the 6.2% it gave last year, which it had affirmed in a research note last month.

“The reduction in the Philippine forecast reflects our view of spillovers from slower growth in the rest of the region, primarily the large impact of the COVID-19 outbreak in China,” Moody’s Senior Vice-President Christian de Guzman said in an e-mail.

“Nevertheless, the forecast has been maintained at a relatively high level because of our baseline expectation that much of the economic impact will be limited to the first quarter and that normalization of activity will resume later in the second quarter,” Mr. De Guzman said.

The Philippine economy grew 5.9% in 2019, slower than the 6.2% print the prior year and missing the downward-revised 6%-6.5% target of the government.

The government set a target range of 6.5%-7.5% economic growth this year.

Economic managers have said they see minimal economic impact from the virus, but this will also depend on how long the outbreak will persist. Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno has said the outbreak could dent the economic growth in the first half by an average of 0.3%.

Meanwhile, the National Economic and Development Authority said the economic impact could further rise to as much as 0.7% of GDP if the virus lingers until December, based on a scenario where inbound Chinese tourists will be cut by 100% and foreign tourists coming in will be reduced by 10% from the baseline during the given period.

Moody’s said they see a disruption in economic activity in the first quarter due to the virus, but the impact to growth will depend on countries’ exposure to China.

In the report, it trimmed its 2020 GDP growth forecast for China to 5.2% from 5.8%. It likewise lowered its projections for other countries within the region, including Thailand at 2.3% (from 3.1%) and Vietnam at 6.4% (from 6.7%).

“We have flagged that the downside risks to the regional economies will be more severe should the outbreak grow to pandemic levels,” Mr. De Guzman said.

He, however, said the Philippines’ growth will be supported by base effects, with spending seen to spike after being a laggard to expansion last year.

“The Philippines will benefit from ‘base effects’ from a ramp-up in government spending this year as compared to last year, which was negatively affected by the four-month delay in the passing of the budget,” he said.

In its report, Moody’s said a prolonged duration of the COVID-19 outbreak will result in “significant second-round effects,” which may include severe supply chain disruptions.

It added that tourism hubs relying mainly on Chinese visitors, which are predominantly in the Asia-Pacific, will be heavily hit by the outbreak’s impact. — Luz Wendy T. Noble

‘Duterte Harry’ renews attacks on critical media

By Norman P. Aquino Special Reports Editor
and
Charmaine A. Tadalan Reporter

PRESIDENT Rodrigo R. Duterte dislikes the press and he’s not afraid to show his disdain for it.

The tough-talking Philippine leader had on numerous occasions unleashed a stream of profanity against dissenting journalists whom he accused of bias and unfair reporting.

Journalists have also been targeted by Mr. Duterte’s Facebook supporters — known bloggers with huge followings and who have fiercely defended him and his policies.

The fight for press freedom goes beyond the Philippines — one of Southeast Asia’s few remaining corners of relatively free and open press — as the world comes to terms with a new breed of populist leaders who wallow in positive coverage and dismiss their critics as “fake news.”

Mr. Duterte has slammed media outlets such as the Philippine Daily Inquirer, ABS-CBN and Rappler for criticizing his government, particularly his war on drugs that has killed thousands of suspected pushers.

The Justice department in February last year indicted Rappler founder Maria Ressa for cyber-libel based on a complaint by a businessman over an article published in 2012, months before the cyber-crime law was passed. The journalist has said the allegations were unfounded.

A month later, she was arrested again for allegedly violating the ban on foreign ownership in media.

Local and international media watchdogs and human rights groups have condemned the arrest of the former CNN investigative reporter. New York-based Committee to Protect Journalists has called on Mr. Duterte’s government “to cease and desist this campaign of intimidation aimed at silencing Rappler.”

Rappler, which Mr. Duterte has called a “fake news outlet,” is also appealing a 2018 order by the Securities and Exchange Commission to close its operations for violating foreign-equity restrictions in mass media.

The news website, which the presidential palace has banned from covering Mr. Duterte’s events, also faces tax evasion cases together with its founder.

Just recently, Mr. Duterte’s government has renewed his attacks on ABS-CBN Corp., with his chief government lawyer asking the Supreme Court to revoke the media network’s franchise, which is expiring in March.

Solicitor General Jose Calida accused ABS-CBN of using an “elaborately crafted corporate veil” to allow foreign investors to take part in its ownership.

Like Rappler, ABS-CBN allegedly violated the ownership restriction when it issued Philippine depositary receipts to foreigners.

GRUDGE
The media network has called the lawsuit “an effort to shut down ABS-CBN to the serious prejudice of millions of Filipinos who rely on the network for news, entertainment and public service.”

Presidential spokesman Salvador S. Panelo has said that while Mr. Duterte’s displeasure at ABS-CBN might have a basis, he had nothing to do with the lawsuit. The President also did not have a hand in the Rappler suits, he said.

Critics have said the issue of ABS-CBN’s franchise has become both personal and political. Mr. Duterte had openly harbored a grudge against the broadcaster.

In 2017, he accused ABS-CBN of swindling after it refused to run political ads he had paid for during the 2016 presidential campaign.

Mr. Duterte had also criticized the broadcaster for airing news stories about his alleged secret bank accounts. He said he would block the renewal of the company’s franchise if he had his way.

“I will not let it pass,” he said in 2018. “Your franchise will end. You know why? Because you are thieves.”

The Center for Media Freedom and Responsibility on Feb. 11 called the case against the network a “dangerous attempt to control and silence free press.”

“After the questionable ouster of Ma. Lourdes Sereno as chief justice of the Supreme Court, Calida appears to believe he has found a magic formula,” the local media watchdog said in a statement.

“Barely two years after that sorry scandal, the quo warranto rears its ugly head a second time during this administration,” it added, referring to the Solicitor General’s lawsuit. It also said the lawsuit “clearly serves the interests of a sulking President.”

Michael Henry Ll. Yusingco, a lawyer and research fellow at the Ateneo de Manila University Policy Center, said the case against ABS-CBN should have been filed before a trial court.

“The proper move is to file this original action in the regional trial court and not the Supreme Court,” he said in an e-mailed reply to questions.

Mr. Yusingco also said the Duterte administration should have waited instead for the franchise to expire instead of seeking to revoke it in court.

“If Mr. Duterte does not want the franchise renewed, then he should present a convincing case to Congress,” he said. “He can also make a good case to the public. Then the latter can pressure their representatives in Congress to deny ABS-CBN a franchise to operate.”

Antonio A. Ligon, a business professor at De La Salle University in Manila, said the attacks on the broadcaster are not healthy for a democratic nation such as the Philippines.

“While the issue is not directly about press freedom, government refusal to extend the media network’s franchise could stifle press freedom,” Mr. Ligon, a lawyer, said by telephone.

GAG ORDER
“Mr. Duterte’s attacks on ABS-CBN are consistent with the Executive branch’s earlier attempts to harass critics, both media groups and opposition politicians, with legal cases,” Maria Ela L. Atienza, a political science professor at the University of the Philippines, said in an e-mailed reply to questions.

She added that the broadcaster’s only hope is in the Senate, which could cross party lines and assert its independence by pushing ABS-CBN’s franchise renewal.

Some lawmakers have argued that ABS-CBN may continue operating pending congressional debates on its franchise renewal.

Senator Grace Poe, who heads the Committee on Public Services, has said the government lawsuit only covers the network’s current franchise that is expiring in March.

A bill seeking to extend the network’s franchise for another 25 years had been filed as early as the 16th Congress under then President Benigno Simeon C. Aquino.

Several bills were refiled in the 17th Congress but did not progress at the House committee on legislative franchises until it adjourned in June 2019. At least 10 House bills seeking to extend the network’s franchise are pending at the same committee, led by the same chairman — Palawan Rep. Franz E. Alvarez.

Speaker Alan Peter S. Cayetano on Friday said the franchise renewal would not be tackled ahead of the March 2020 expiration as the chamber focuses on more important matters.

He said congressmen could look at the franchise extension by May or after the President’s annual state of the nation address in July.

The Senate, on the other hand, wants to exercise its oversight function over the ABS-CBN franchise by calling for an inquiry into the allegations against the media company.

Opposition Senator Franklin M. Drilon on Tuesday said the high court could not prevent the Senate from summoning the network’s officials as a committee inquires into the franchise “in aid of legislation.”

This comes after Mr. Calida asked the tribunal to issue a gag order on ABS-CBN pending the government’s lawsuit. (Read related article: “State lawyer asks SC to issue gag order vs ABS-CBN”).

“Such gag order, if ordered, cannot serve as a prohibition for ABS-CBN to appear and testify before the Senate panel,” said Mr. Drilon, who has filed a resolution seeking to extend the franchise.

“The Constitution and various jurisprudence have many times upheld the power of the Senate to conduct inquiries in aid of legislation and to exercise its oversight power,” he added.

Electronics exports growth in 2019 exceeded SEIPI target

ELECTRONICS exports jumped by 4% in 2019, exceeding the industry’s full-year growth target of 0-3% and reaching a new record, according to the Semiconductor and Electronics Industries of the Philippines Inc. (SEIPI).

In a report, SEIPI said electronics exports stood at $43.32 billion in 2019, making up 61.6% of the country’s total commodity exports.

SEIPI President Danilo C. Lachica said in a mobile phone message on Tuesday this is the industry’s third straight year of record growth.

“The hardware demand for emerging and new technologies drove up the (overall) demand,” he said.

Emerging technologies that have boosted demand include 5G, wearables, Internet of Things, collaborative robots, augmented reality, and virtual reality.

Mr. Lachica said the semiconductor market is also recovering, after flat to negative growth last year due to a decline in smartphone parts.

SEIPI had set a conservative 0-3% growth target for 2019, citing the decline in smartphone demand and a possible escalation of the trade war.

But Mr. Lachica on Tuesday said the trade war had minimal impact on the industry.

The US and China in October 2019 announced the first phase of a trade deal, which was signed in January. The deal cut US tariffs on Chinese exports in exchange for China’s pledges to buy more American farm, energy, and manufacturing products.

SEIPI set a 5% growth target for 2020, which Mr. Lachica said could be downwardly revised due to supply issues after the COVID-19 outbreak caused preventative factory shutdowns in China. — Jenina P. Ibañez

BoC sees ‘huge’ drop in cargo volume in Feb.

THE Bureau of Customs (BoC) is seeing 50% year-on-year drop in trade volume in the first half of February, as the coronavirus disease 2019 (COVID-19) outbreak disrupted global supply chains.

“I just got the figures, the first 15 days of February, as compared to the first 15 days of February last year, is a little over a half only of the TEUs (twenty-foot equivalent units), containers coming in. We’re concerned but we believe that the slack will be taken up in other markets,” Finance Secretary Carlos G. Dominguez III told reporters on the sidelines of an event in Pasay City on Tuesday.

Sought for comment, BoC Assistant Commissioner and Spokesperson Vincent Philip C. Maronilla told BusinessWorld that the 50% decrease in volume is considered “huge” for the agency’s collections, as it saw declines in cargo from China, the center of the COVID-19 outbreak.

Marami rin nanggaling from other countries (other countries also reported declines) but because China is our biggest trading partner, a big chunk of the volume decline was goods coming from China,” Mr. Maronilla said via mobile phone on Tuesday.

He said the decline was first observed in February, as the outbreak continued to spread from mainland China to other countries.

“We’ll have to see with how global economy would react and bounce back because we need to recognize this thing (outbreak) has affected the entire global economy already,” Mr. Maronilla said, who declined to disclose specific figures.

However, the Finance chief remained confident the government will hit its revenue collection target this year, despite worries over how the COVID-19 outbreak may impact the economy.

“We’re going to make our target. The Bureau of Internal Revenue (BIR) has all the tools, manpower and systems to collect that amount,” Mr. Dominguez said.

The BIR is tasked to collect P2.576 trillion this year, accounting for 78% of the P3.3-trillion goal for the country’s two biggest tax collection agencies. The Customs bureau is tasked to collect the remaining P731.235 billion.

BIR Deputy Commissioner for Operations Arnel S.D. Guballa earlier said that some businesses already reported a decline in sales due to the Taal Volcano eruption and the outbreak, which may yield lower tax collections in the first quarter.

Mr. Dominguez said he expects the drop in business revenues, which may lead to lower tax collections, will be “temporary until this coronavirus contagion is [contained].”

Collections of the BIR and Customs make up the bulk of the country’s revenues, with other collections coming from the Bureau of the Treasury and nontax revenue from other offices, such as privatization proceeds and fees.

These revenues are meant to fund the government’s P4.1-trillion spending program this year, with other funding to come from local or foreign borrowings, as the country still operates on a budget deficit. — Beatrice M. Laforga

UK trade envoy sees ‘strong’ potential for FTA with Philippines

THE POTENTIAL for a free trade agreement (FTA) with the United Kingdom (UK) is “quite strong” after its exit from the European Union (EU), the UK trade envoy to the Philippines said.

UK Prime Minister’s Trade Envoy to the Philippines Richard Graham told reporters on Tuesday that the country is prioritizing Singapore and Malaysia among Southeast Asian countries prior to possible negotiations with the Philippines.

“I think the potential for a free trade agreement is quite strong in the future,” he said.

The UK officially exited the EU on Jan. 31, and its transition period will continue until Dec. 31, 2020.

Mr. Graham said trade between the Philippines and the UK is complementary, as the Philippines exports agricultural products and imports aerospace, consumer goods, and high-tech products from the UK.

While FTA talks have not yet begun, Mr. Graham said the UK is looking to open up the UK market further to the Philippines by tailoring its existing preferential trade agreements.

The Philippines currently has preferential market access to the EU through the Generalized Scheme of Preferences (GSP+) for the duty-free entry of up to 6,274 products into countries in the union.

“Because we have trading arrangements under what’s called GSP+… we will roll that over on the 31st of December. It’s rebranded as a UK GSP, but it will be exactly the same,” Mr. Graham said.

“Over time, the ambassador and his team will be able to review this with (Trade Secretary) Ramon Lopez and his team, and see if there are opportunities to improve this and to tailor the existing arrangements for the UK-Philippines.”

The UK trade envoy said some other countries in Europe are protective of their agriculture industries as they locally produce similar products with Philippine exports.

“But we don’t. So it may be easier for us to be more open to the Philippines on that side, and we might want a bit more access on the services side and in other sectors,” Mr. Graham added.

Beyond what he calls the medium-term GSP plan, there is an opportunity for an FTA and further investments.

“I think there is some very good opportunities to build on existing investment, particularly in the BPO (business process outsourcing) sector, but also some manufacturing,” he said, noting that tax rules should be clear and favorable.

Central bank Governor Benjamin E. Diokno last week said dollar remittances, outsourcing and tourism receipts would probably shield the Philippine economy from the short-term effects of Brexit.

“Uncertainty that may arise from the post-Brexit transition may contribute to a short-term spike in market volatility and risk aversion, which could lead to a temporary flight to safe-haven assets,” Mr. Diokno has said.

Mr. Diokno said gross placements from the UK accounted for 0.7% of the country’s foreign direct investments from January to August last year, while foreign portfolio investments from the UK accounted for 29.7% of the total. — Jenina P. Ibañez

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