By Abigail Marie P. Yraola, Researcher
\nGROWTH in wholesale prices of general goods eased in November, its weakest pace in five months, the Philippine Statistics Authority (PSA) reported on Friday.
\nPreliminary data from the PSA showed the general wholesale price index (GWPI) slowed by 4.2% year on year, significantly lower than the 7.2% in November 2022 and 4.4% in October.
\nThe November reading was the slowest since the 4% recorded in June 2023.
\nYear to date, GWPI averaged 4.9%, lower than the 7.4% a year ago.
\nRobert Dan J. Roces, chief economist at Security Bank Corp. said that the November might be a result of the economy adjusting post-pandemic and spending patterns returning to normal, which could lead to reduced demand pressures.
\n\u201cImproved supply chain conditions, which may have reduced logistical costs and supply shortages that previously drove prices higher, as well as stabilization or decline in global commodity prices, particularly if the goods are imported or influenced by global markets,\u201d he said in a Viber message.
\nAdditionally, he said a possible cause for the slowdown in bulk prices is the government or central bank policies that may have reduced inflationary pressures, such as adjusting import tariffs or providing subsidies.
\nThe indicator could also be indicating base effects from a year earlier, Mr. Roces added.
\nIn its December policy meeting, the Bangko Sentral ng Pilipinas (BSP) decided to maintain its benchmark interest rate at a 16-year high of 6.5%.
\nThe decision came after the BSP had raised rates by a cumulative of 450 basis points between May 2022 and October 2023 in its efforts to control inflation.
The PSA said that the downtrend seen in November is due to the downtrend in the index of mineral fuels, lubricants, and related materials which contracted by 6.7% from a 3.7% decline in October.
\nThis was followed by miscellaneous manufactured articles (3.3% from 3.6%) and chemicals including animal and vegetable oils and fats (1.5% from 1.8%).
\nOther commodities that logged slower growth were the heavily weighted food index (6.8% from 7%) and machinery and transport equipment (1.3% from 1.5%).
\nMeanwhile, manufactured goods classified chiefly by materials remained at 4.6%.
\nOn the other hand, beverages and tobacco stood at 6.2% from 6% in October while a slower annual decline was logged in the index of crude materials, inedible except fuels at 1.9% in November from its 3.5% decline a month earlier, the PSA said.
\nBulk prices growth in Luzon and the Visayas slowed while it further rose in Mindanao.
\nWholesale price growth in Luzon eased by 4.1% during the period from 7.4% in November 2022 and 4.4% in October last year.
\nIn the Visayas, GWPI likewise slowed by 5.2% in November, significantly lower from 6.5% in the same month in 2022 and 5.3% in October 2023.
\nOn the other hand, price growth in Mindanao grew by 3.6% against the 4.8% in November 2022. It also picked up from the 3.3% in October 2023.
\n\u201cIf the trends observed in November continue and barring any unforeseen supply shocks or significant policy changes, the general trajectory of wholesale prices might remain stable or continue to ease slightly,\u201d Mr. Roces said.
\n", "content_text": "By Abigail Marie P. Yraola, Researcher\nGROWTH in wholesale prices of general goods eased in November, its weakest pace in five months, the Philippine Statistics Authority (PSA) reported on Friday.\nPreliminary data from the PSA showed the general wholesale price index (GWPI) slowed by 4.2% year on year, significantly lower than the 7.2% in November 2022 and 4.4% in October.\nThe November reading was the slowest since the 4% recorded in June 2023.\nYear to date, GWPI averaged 4.9%, lower than the 7.4% a year ago.\nRobert Dan J. Roces, chief economist at Security Bank Corp. said that the November might be a result of the economy adjusting post-pandemic and spending patterns returning to normal, which could lead to reduced demand pressures.\n\u201cImproved supply chain conditions, which may have reduced logistical costs and supply shortages that previously drove prices higher, as well as stabilization or decline in global commodity prices, particularly if the goods are imported or influenced by global markets,\u201d he said in a Viber message.\nAdditionally, he said a possible cause for the slowdown in bulk prices is the government or central bank policies that may have reduced inflationary pressures, such as adjusting import tariffs or providing subsidies.\nThe indicator could also be indicating base effects from a year earlier, Mr. Roces added.\nIn its December policy meeting, the Bangko Sentral ng Pilipinas (BSP) decided to maintain its benchmark interest rate at a 16-year high of 6.5%.\nThe decision came after the BSP had raised rates by a cumulative of 450 basis points between May 2022 and October 2023 in its efforts to control inflation.\nThe PSA said that the downtrend seen in November is due to the downtrend in the index of mineral fuels, lubricants, and related materials which contracted by 6.7% from a 3.7% decline in October.\nThis was followed by miscellaneous manufactured articles (3.3% from 3.6%) and chemicals including animal and vegetable oils and fats (1.5% from 1.8%).\nOther commodities that logged slower growth were the heavily weighted food index (6.8% from 7%) and machinery and transport equipment (1.3% from 1.5%).\nMeanwhile, manufactured goods classified chiefly by materials remained at 4.6%.\nOn the other hand, beverages and tobacco stood at 6.2% from 6% in October while a slower annual decline was logged in the index of crude materials, inedible except fuels at 1.9% in November from its 3.5% decline a month earlier, the PSA said.\nBulk prices growth in Luzon and the Visayas slowed while it further rose in Mindanao.\nWholesale price growth in Luzon eased by 4.1% during the period from 7.4% in November 2022 and 4.4% in October last year.\nIn the Visayas, GWPI likewise slowed by 5.2% in November, significantly lower from 6.5% in the same month in 2022 and 5.3% in October 2023.\nOn the other hand, price growth in Mindanao grew by 3.6% against the 4.8% in November 2022. It also picked up from the 3.3% in October 2023.\n\u201cIf the trends observed in November continue and barring any unforeseen supply shocks or significant policy changes, the general trajectory of wholesale prices might remain stable or continue to ease slightly,\u201d Mr. Roces said.", "date_published": "2024-01-05T14:35:53+08:00", "date_modified": "2024-01-05T14:35:53+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/rgentribirthfurd/", "avatar": "https://secure.gravatar.com/avatar/67e0d160ec455979f75e504cb026950a?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/rgentribirthfurd/", "avatar": "https://secure.gravatar.com/avatar/67e0d160ec455979f75e504cb026950a?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2022/01/for-story-3-VEGETABLES_04_VARCAS_280121.jpg", "tags": [ "Abigail Marie P. Yraola", "Economy" ] }, { "id": "https://www.bworldonline.com/?p=567014", "url": "https://www.bworldonline.com/economy/2024/01/04/567014/erc-committee-looking-into-panay-island-power-outage/", "title": "ERC: Committee looking into Panay Island power outage", "content_html": "\n
THE Energy Regulatory Commission (ERC) said the Panay power outage has been referred to an interim grid management committee for investigation, adding that appropriate penalties will be imposed after the panel delivers its findings.
\n\u201cAfter the investigation, if penalties are called for, then we will commence proper proceedings to allow the relevant parties to answer and, if answers are not acceptable, impose penalties,\u201d ERC Chairperson Monalisa C. Dimalanta said in a Viber message.
\nThe National Grid Corp. of the Philippines (NGCP) reported on Tuesday that multiple power plants tripped, including units of Panay Energy Development Corp. and Palm Concepcion Power Corp. (PCPC).
\nDue to the plant outages, some 452 megawatts (MW) became unavailable, causing the NGCP to raise a yellow alert on the Visayas grid.
\nThe yellow alert was lifted at 9:01 p.m. on Tuesday.
\nAccording to an NGCP update on Thursday, some 244.6 MW of electricity is currently being generated by Panay power plants.
\nThe Visayas grid will need about 300 MW to stabilize, and is awaiting the return of a 135-MW PCPC facility.
\nThe plant is targeted to be synchronized with the grid between 10 p.m. and 12 midnight on Jan. 4.
\nCiting an initial report, Ms. Dimalanta said equipment failure at PCPC caused the plant to trip. Operators are waiting for the unit to cool down before it can be restarted.
\nMORE Electric and Power Corp., the sole electric distribution utility in Iloilo City, has been affected by the power disruption, as well as seven electric cooperatives on the island.
\nAs of 2:30 p.m. on Thursday, almost 50% of MORE\u2019s customers were still not receiving power, it said. The company has imposed rotational outages every three hours due to the insufficient power supply.
\n\u201cWe need to investigate this further because it is impossible that all plants just decided to go offline all at the same time, or that they all failed on their own at the same time,\u201d Ms. Dimalanta said.
\n\u201cThere must be something that led to those serial consequences among the generation plants,\u201d she added.
\nMs. Dimalanta said there should have been systems in place to prevent such occurrences.
\nShe said that NGCP can direct distribution utilities to drop load to reduce demand to the level of available supply, thereby stabilizing the system.
\n\u201cThe system operator also controls the dispatch of plants so it could have initiated measures also on that end,\u201d she said.
\n\u201cWe are reviewing whether these measures were undertaken and whether they were enough, or if anything else can be improved,\u201d she added.
\nThe NGCP has said that load restoration will be done \u201cconservatively, by matching loads to restored generation, to prevent repeated voltage failure.\u201d
\n\u201cThe people must understand that we can only transmit power, we do not generate power,\u201d it said in a statement on Wednesday.
\nLegislators have called on the NGCP and the Department of Energy (DoE) to look into the Western Visayas outages.
\n\u201cThe DoE and the NGCP must understand the gravity of this situation and act decisively to resolve it,\u201d Senate President Juan Miguel F. Zubiri said in a statement. \u201cThey should get their acts together immediately.\u201d
\nHe said constant power interruptions hamper the livelihoods and the delivery of basic services to the region\u2019s citizens.
\nMr. Zubiri called on the DoE and NGCP to be transparent in implementing measures to address the outages.
\nParty-list Rep. France L. Castro called on the NGCP to take accountability for the blackouts that have left some parts of Panay without electricity since Jan. 2.
\nIn a statement, she also called on MORE Electric and Power Corp., which supplies power to Iloilo City, to improve its coordination with the electric system grid operators.
\n\u201cDoes (MORE Power) even have a system to help protect the grid from collapsing, like a load dropping mechanism?\u201d Ms. Castro said.
\nSenate Majority Floor Leader Joel J. Villanueva said the government needs a short-term and long-term strategy for dealing with power disruptions, include ensuring that power plants are properly maintained.
\n\u201cWe also need to continue exploring other sources of renewable energy such as wind and solar to keep up with the DoE\u2019s goal of a power generation mix target of 35% by 2030,\u201d he said in a statement.
\nCiting DoE data, Mr. Villanueva said about half of the power plants in the Philippines are at least 20 years old.
\n\u201cThe situation is no longer tolerable, and the DoE and the NGCP must urgently address this issue before irreparable damage is done to our communities,\u201d Mr. Zubiri said. \u2014 Sheldeen Joy Talavera and John Victor D. Ordo\u00f1ez
\n", "content_text": "THE Energy Regulatory Commission (ERC) said the Panay power outage has been referred to an interim grid management committee for investigation, adding that appropriate penalties will be imposed after the panel delivers its findings.\n\u201cAfter the investigation, if penalties are called for, then we will commence proper proceedings to allow the relevant parties to answer and, if answers are not acceptable, impose penalties,\u201d ERC Chairperson Monalisa C. Dimalanta said in a Viber message.\nThe National Grid Corp. of the Philippines (NGCP) reported on Tuesday that multiple power plants tripped, including units of Panay Energy Development Corp. and Palm Concepcion Power Corp. (PCPC).\nDue to the plant outages, some 452 megawatts (MW) became unavailable, causing the NGCP to raise a yellow alert on the Visayas grid.\nThe yellow alert was lifted at 9:01 p.m. on Tuesday.\nAccording to an NGCP update on Thursday, some 244.6 MW of electricity is currently being generated by Panay power plants.\nThe Visayas grid will need about 300 MW to stabilize, and is awaiting the return of a 135-MW PCPC facility.\nThe plant is targeted to be synchronized with the grid between 10 p.m. and 12 midnight on Jan. 4.\nCiting an initial report, Ms. Dimalanta said equipment failure at PCPC caused the plant to trip. Operators are waiting for the unit to cool down before it can be restarted.\nMORE Electric and Power Corp., the sole electric distribution utility in Iloilo City, has been affected by the power disruption, as well as seven electric cooperatives on the island.\nAs of 2:30 p.m. on Thursday, almost 50% of MORE\u2019s customers were still not receiving power, it said. The company has imposed rotational outages every three hours due to the insufficient power supply.\n\u201cWe need to investigate this further because it is impossible that all plants just decided to go offline all at the same time, or that they all failed on their own at the same time,\u201d Ms. Dimalanta said.\n\u201cThere must be something that led to those serial consequences among the generation plants,\u201d she added.\nMs. Dimalanta said there should have been systems in place to prevent such occurrences.\nShe said that NGCP can direct distribution utilities to drop load to reduce demand to the level of available supply, thereby stabilizing the system.\n\u201cThe system operator also controls the dispatch of plants so it could have initiated measures also on that end,\u201d she said.\n\u201cWe are reviewing whether these measures were undertaken and whether they were enough, or if anything else can be improved,\u201d she added.\nThe NGCP has said that load restoration will be done \u201cconservatively, by matching loads to restored generation, to prevent repeated voltage failure.\u201d\n\u201cThe people must understand that we can only transmit power, we do not generate power,\u201d it said in a statement on Wednesday.\nLegislators have called on the NGCP and the Department of Energy (DoE) to look into the Western Visayas outages.\n\u201cThe DoE and the NGCP must understand the gravity of this situation and act decisively to resolve it,\u201d Senate President Juan Miguel F. Zubiri said in a statement. \u201cThey should get their acts together immediately.\u201d\nHe said constant power interruptions hamper the livelihoods and the delivery of basic services to the region\u2019s citizens.\nMr. Zubiri called on the DoE and NGCP to be transparent in implementing measures to address the outages.\nParty-list Rep. France L. Castro called on the NGCP to take accountability for the blackouts that have left some parts of Panay without electricity since Jan. 2.\nIn a statement, she also called on MORE Electric and Power Corp., which supplies power to Iloilo City, to improve its coordination with the electric system grid operators.\n\u201cDoes (MORE Power) even have a system to help protect the grid from collapsing, like a load dropping mechanism?\u201d Ms. Castro said.\nSenate Majority Floor Leader Joel J. Villanueva said the government needs a short-term and long-term strategy for dealing with power disruptions, include ensuring that power plants are properly maintained.\n\u201cWe also need to continue exploring other sources of renewable energy such as wind and solar to keep up with the DoE\u2019s goal of a power generation mix target of 35% by 2030,\u201d he said in a statement.\nCiting DoE data, Mr. Villanueva said about half of the power plants in the Philippines are at least 20 years old.\n\u201cThe situation is no longer tolerable, and the DoE and the NGCP must urgently address this issue before irreparable damage is done to our communities,\u201d Mr. Zubiri said. \u2014 Sheldeen Joy Talavera and John Victor D. Ordo\u00f1ez", "date_published": "2024-01-04T20:52:07+08:00", "date_modified": "2024-01-04T20:52:07+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/07/linemen-electric-line.jpg", "tags": [ "John Victor D. Ordonez", "Sheldeen Joy Talavera", "Economy", "Editors' Picks", "One News" ] }, { "id": "https://www.bworldonline.com/?p=567012", "url": "https://www.bworldonline.com/economy/2024/01/04/567012/rice-imports-hit-3-48-million-mt-as-of-late-december/", "title": "Rice imports hit 3.48 million MT as of late December", "content_html": "\n
THE PHILIPPINES imported 3.48 million metric tons (MT) of rice in 2023 as of late December, according to the Bureau of Plant Industry (BPI).
\nRice imports in December up to the 28th of the month totaled 387.21 thousand MT, up 29.19% from a year earlier.
\nThe Department of Agriculture (DA) said for the entirety of 2023, imports are expected to total 3.65 million MT, or below the 3.8 million MT projected by the US Department of Agriculture.
\nThe DA has said that about 500,000 MT of rice are expected to arrive in December and January as the government seeks to build reserves for the peak of El Ni\u00f1o.
\nEl Ni\u00f1o is expected to intensify between January and May, affecting about 63 provinces with droughts and dry spells, according to the government weather service, known as PAGASA (Philippine Atmospheric, Geophysical and Astronomical Services Administration).
\nThe BPI reported that Vietnam remained the Philippines\u2019 top supplier of rice with 84.27% of total imports. Shipments from Vietnam are expected to hit 2.94 million MT.
\nThailand supplied 297.2 thousand MT and Myanmar 143.92 thousand MT.
\nThe DA said that 75 thousand MT of rice was set to arrive from India by early January, part of a 295,00 MT rice allocation India granted the Philippines in October.
\nThe Indian government issued the quota for non-basmati white rice to the Philippines. It had earlier banned all exports of non-basmati white rice to stabilize its domestic supply.
\nArrivals from India have amounted to 13,758 MT, as of Dec. 28.
\nMeanwhile, the BPI has issued 824 sanitary and phytosanitary import clearances (SPSICs) for December covering the import of about 660.01 thousand MT of rice.
\nAgriculture Secretary Francisco Tiu Laurel, Jr. said he has instructed traders to use up their SPSICs for an additional 1 million MT of rice. The DA has imposed a 30-day deadline for traders to use their permits. \u2014 Adrian H. Halili
\n", "content_text": "THE PHILIPPINES imported 3.48 million metric tons (MT) of rice in 2023 as of late December, according to the Bureau of Plant Industry (BPI).\nRice imports in December up to the 28th of the month totaled 387.21 thousand MT, up 29.19% from a year earlier.\nThe Department of Agriculture (DA) said for the entirety of 2023, imports are expected to total 3.65 million MT, or below the 3.8 million MT projected by the US Department of Agriculture.\nThe DA has said that about 500,000 MT of rice are expected to arrive in December and January as the government seeks to build reserves for the peak of El Ni\u00f1o.\nEl Ni\u00f1o is expected to intensify between January and May, affecting about 63 provinces with droughts and dry spells, according to the government weather service, known as PAGASA (Philippine Atmospheric, Geophysical and Astronomical Services Administration).\nThe BPI reported that Vietnam remained the Philippines\u2019 top supplier of rice with 84.27% of total imports. Shipments from Vietnam are expected to hit 2.94 million MT.\nThailand supplied 297.2 thousand MT and Myanmar 143.92 thousand MT.\nThe DA said that 75 thousand MT of rice was set to arrive from India by early January, part of a 295,00 MT rice allocation India granted the Philippines in October.\nThe Indian government issued the quota for non-basmati white rice to the Philippines. It had earlier banned all exports of non-basmati white rice to stabilize its domestic supply.\nArrivals from India have amounted to 13,758 MT, as of Dec. 28.\nMeanwhile, the BPI has issued 824 sanitary and phytosanitary import clearances (SPSICs) for December covering the import of about 660.01 thousand MT of rice.\nAgriculture Secretary Francisco Tiu Laurel, Jr. said he has instructed traders to use up their SPSICs for an additional 1 million MT of rice. The DA has imposed a 30-day deadline for traders to use their permits. \u2014 Adrian H. Halili", "date_published": "2024-01-04T20:50:52+08:00", "date_modified": "2024-01-04T20:50:52+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2021/04/RICE-IMPORTS-FILEFOTO.jpg", "tags": [ "Adrian H. Halili", "Economy", "Editors' Picks", "One News" ] }, { "id": "https://www.bworldonline.com/?p=567011", "url": "https://www.bworldonline.com/economy/2024/01/04/567011/agri-export-growth-hindered-by-funding-capacity-constraints/", "title": "Agri export growth hindered by funding, capacity constraints", "content_html": "By Adrian H. Halili, Reporter
\nAGRICULTURAL EXPORT growth will continue to be constrained by limited output and funding to develop the high-value crop sector, farmers said.
\n\u201cOur problem with exports goes back to our problems in producing high-quality and competitively priced products on a consistent and sustainable basis, and in a way that is profitable for our farmers and market players,\u201d Federation of Free Farmers National Manager Raul Q. Montemayor said in a Viber message.
\nFormer Agriculture Undersecretary Fermin D. Adriano blamed the lack of funds allocated for high-value crops, as against the attention paid to rice production.
\nThe Department of Agriculture (DA) has set aside about P31 billion in 2024 to improve rice production.
\n\u201cFor as long as research and development and extension services receive a pittance, and the DA does not properly play its role of training our agri-exporters on (sanitary and phytosanitary) standards of the various rich importing countries, export growth potential will be constrained,\u201d Mr. Adriano said in a Viber message.
\nThe DA has announced the preparation of a Philippine Agricultural Export Development Plan to increase exports of agriculture and fisheries products.
\n\u201cDespite all the supposed concessions we gained from trade negotiations, our agricultural trade deficit has continued to increase, especially since our competitors are racing far ahead of us,\u201d Mr. Montemayor added.
\nAgricultural exports declined 13.3% to $1.61 billion during the third quarter, accounting for 8.2% of total exports, according to the Philippine Statistics Authority.
\nThe leading exports were edible fruit and nuts as well as peel of citrus fruit and melons, valued at $492.09 million, or 30.5% of the total.
\nHe said that the DA needs to identify products to focus on for export while setting up a support system covering the process from production to domestic and international markets.
\n\u201cMalaking trabaho\u00a0(It\u2019s a big job) but there are many success stories, which we just need to promote and expand,\u201d Mr. Montemayor added.
\nMeanwhile, Roy S. Kempis, a retired Pampanga State Agricultural University professor, said that agriculture products like mango, avocado, and durian are on demand in global markets but can benefit from further support.
\n\u201cPhilippine mango is preferred for its sweetness, texture and appropriate amount of fiber both in the export and domestic markets,\u201d Mr. Kempis said in a Viber message, citing the potential for expanding the crop.
\nHe added that the government could increase farmland dedicated to avocado and durian.
\nMr. Kempis said technical and management training is needed by producers and exporters.
\nHe said increasing the planting area, improving pest management and irrigation systems, and building community processing areas, will support the growth of such exportable crops, as will more access to credit.
\n\u201cExporting and financial literacy are two other areas that agriculture and food producers and exporters could be trained in,\u201d he added.
\n", "content_text": "By Adrian H. Halili, Reporter\nAGRICULTURAL EXPORT growth will continue to be constrained by limited output and funding to develop the high-value crop sector, farmers said.\n\u201cOur problem with exports goes back to our problems in producing high-quality and competitively priced products on a consistent and sustainable basis, and in a way that is profitable for our farmers and market players,\u201d Federation of Free Farmers National Manager Raul Q. Montemayor said in a Viber message.\nFormer Agriculture Undersecretary Fermin D. Adriano blamed the lack of funds allocated for high-value crops, as against the attention paid to rice production.\nThe Department of Agriculture (DA) has set aside about P31 billion in 2024 to improve rice production.\n\u201cFor as long as research and development and extension services receive a pittance, and the DA does not properly play its role of training our agri-exporters on (sanitary and phytosanitary) standards of the various rich importing countries, export growth potential will be constrained,\u201d Mr. Adriano said in a Viber message.\nThe DA has announced the preparation of a Philippine Agricultural Export Development Plan to increase exports of agriculture and fisheries products.\n\u201cDespite all the supposed concessions we gained from trade negotiations, our agricultural trade deficit has continued to increase, especially since our competitors are racing far ahead of us,\u201d Mr. Montemayor added.\nAgricultural exports declined 13.3% to $1.61 billion during the third quarter, accounting for 8.2% of total exports, according to the Philippine Statistics Authority.\nThe leading exports were edible fruit and nuts as well as peel of citrus fruit and melons, valued at $492.09 million, or 30.5% of the total.\nHe said that the DA needs to identify products to focus on for export while setting up a support system covering the process from production to domestic and international markets.\n\u201cMalaking trabaho\u00a0(It\u2019s a big job) but there are many success stories, which we just need to promote and expand,\u201d Mr. Montemayor added.\nMeanwhile, Roy S. Kempis, a retired Pampanga State Agricultural University professor, said that agriculture products like mango, avocado, and durian are on demand in global markets but can benefit from further support.\n\u201cPhilippine mango is preferred for its sweetness, texture and appropriate amount of fiber both in the export and domestic markets,\u201d Mr. Kempis said in a Viber message, citing the potential for expanding the crop.\nHe added that the government could increase farmland dedicated to avocado and durian.\nMr. Kempis said technical and management training is needed by producers and exporters.\nHe said increasing the planting area, improving pest management and irrigation systems, and building community processing areas, will support the growth of such exportable crops, as will more access to credit.\n\u201cExporting and financial literacy are two other areas that agriculture and food producers and exporters could be trained in,\u201d he added.", "date_published": "2024-01-04T20:50:18+08:00", "date_modified": "2024-01-04T20:50:18+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2022/07/Durian-2022-BW-MMPADILLO.jpg", "tags": [ "Adrian H. Halili", "Economy", "Editors' Picks", "One News" ], "summary": "AGRICULTURAL EXPORT growth will continue to be constrained by limited output and funding to develop the high-value crop sector, farmers said." }, { "id": "https://www.bworldonline.com/?p=567010", "url": "https://www.bworldonline.com/economy/2024/01/04/567010/upskilling-streamlined-govt-seen-improving-business-performance-in-2024-pcci-says/", "title": "Upskilling, streamlined gov\u2019t seen improving business performance in 2024, PCCI says", "content_html": "\n
THE Philippine Chamber of Commerce and Industry (PCCI) said that 2024 could be a better year for business as the government and private sector seek to address ease of doing business (EoDB), power, and upskilling issues.
\n\u201cWith all these efforts\u2026 and all those good individuals who were recently appointed to help us address the issues (of) EoDB, power and upskilling and reskilling of our labor, we are optimistic that 2024 will be a better year,\u201d said PCCI President Enunina Mangio in a television interview.
\nShe said foreign business organizations\u2019 own forecasts are signaling that the Philippines could be the fastest growing economy in Southeast Asia.
\n\u201cPCCI assumes that this growth will be driven by resilient domestic consumption, increased government spending, infrastructure projects and a gradual recovery in some sectors. We see the economy gradually and moderately growing,\u201d she added.
\nShe cited the need to strengthen its foreign relations and work on achieving remittance targets from overseas Filipino workers.
\nThe reliance on remittances \u201cis why reskilling of our laborers is very important,\u201d she added.
\nMs. Mangio said that the PCCI recognizes that the business sector has the responsibility to help the government in reviving the economy.
\n\u201cThat is why we are taking a more proactive role in helping the national and local governments champion initiatives that will make our enterprises more competitive and our important sectors more attractive to local and foreign investors,\u201d she said. \u2014 Justine Irish D. Tabile
\n", "content_text": "THE Philippine Chamber of Commerce and Industry (PCCI) said that 2024 could be a better year for business as the government and private sector seek to address ease of doing business (EoDB), power, and upskilling issues.\n\u201cWith all these efforts\u2026 and all those good individuals who were recently appointed to help us address the issues (of) EoDB, power and upskilling and reskilling of our labor, we are optimistic that 2024 will be a better year,\u201d said PCCI President Enunina Mangio in a television interview.\nShe said foreign business organizations\u2019 own forecasts are signaling that the Philippines could be the fastest growing economy in Southeast Asia.\n\u201cPCCI assumes that this growth will be driven by resilient domestic consumption, increased government spending, infrastructure projects and a gradual recovery in some sectors. We see the economy gradually and moderately growing,\u201d she added.\nShe cited the need to strengthen its foreign relations and work on achieving remittance targets from overseas Filipino workers.\nThe reliance on remittances \u201cis why reskilling of our laborers is very important,\u201d she added.\nMs. Mangio said that the PCCI recognizes that the business sector has the responsibility to help the government in reviving the economy.\n\u201cThat is why we are taking a more proactive role in helping the national and local governments champion initiatives that will make our enterprises more competitive and our important sectors more attractive to local and foreign investors,\u201d she said. \u2014 Justine Irish D. Tabile", "date_published": "2024-01-04T20:49:39+08:00", "date_modified": "2024-01-04T20:49:39+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2022/08/Technical-vocational-training.jpg", "tags": [ "Justine Irish D. Tabile", "Economy", "One News" ] }, { "id": "https://www.bworldonline.com/?p=567009", "url": "https://www.bworldonline.com/economy/2024/01/04/567009/fef-proposes-relaxing-foreign-ownership-restrictions-in-constitution/", "title": "FEF proposes relaxing foreign ownership restrictions in Constitution", "content_html": "\n
THE Foundation for Economic Freedom, Inc. (FEF) is proposing amending the Constitution\u2019s economic provisions to allow 100% foreign ownership of land, utilities, educational institutions, and mass media.
\n\u201cWe believe that the removal of restrictive economic provisions sends a clear and compelling message to foreign investors, signaling a warm welcome to investment and business operations in the Philippines,\u201d the FEF said in a statement on Thursday.
\n\u201cThe restrictions in the 1987 Constitution serve as constraints to developing areas of the economy where the Philippines has great promise such as mass media and renewable energy. The existing constitutional restrictions limit investments that we need to develop our creative industries,\u201d it added.
\nThe FEF proposed to amend the following sections of the Constitution to allow 100% foreign ownership: Section 2, Article XII (National Patrimony and Economy); Section 3, Article XII (National Economy and Patrimony); Section 7, Article XII (National Patrimony and Economy); Section 10, Article XII (National Patrimony and Economy); Section 11, Article XII (National Patrimony and Economy); Section 4, Article XIV (Education, Science and Technology, Arts, Culture, and Sports); and Section 11, Article XVI (General Provisions).
\nThe FEF also proposed the following amendments to the Filipino First provisions of the Constitution:
\nSection 19, Article II (Declaration of Principles and State Policies): From \u201cThe State shall develop a self-reliant and independent national economy effectively controlled by Filipinos\u201d to \u201cThe State shall develop a self-reliant and independent national economy for the benefit of all Filipinos.\u201d
\nSection 10, Article XII (National Economy and Patrimony): From \u201c\u2026In the grant of rights, privileges, and concessions covering the national economy and patrimony, the State shall give preference to qualified Filipinos\u2026\u201d to \u201c…in the grants of rights privileges, and concessions covering the national economy and patrimony, the State shall give preference to qualified investors.\u201d
\nRemoving such restrictions in the Constitution could help policymakers respond more effectively to both global and domestic economic changes, the FEF said.
\nCongress may still install safety nets within the constitution to ensure economic and social development, it added.
\n\u201cWe strongly emphasize that constitutional amendments should be limited exclusively to economic provisions. This focused approach reduces the risk of political controversy and division, ensuring the swift passage of crucial amendments to the economic provisions of the Constitution,\u201d the FEF said.
\nHowever, the FEF noted that amending the constitution alone won\u2019t sufficiently attract foreign investors as the government still needs to improve on upholding the rule of law, improving infrastructure, and ensuring ease of doing business.
\nPolicy analyst and lawyer Michael Henry L. Yusingco said allowing 100% foreign ownership is not expected to boost foreign direct investments (FDI) significantly.
\n\u201cBut if we also fix our power issues, labor productivity issues, and transportation issues, then the amendment of the economic provisions can lead to a boost in FDI specifically in the sectors concerned like education, mass media and power generation,\u201d he said via messenger.
\n\u201cTo boost our FDI, we also need to solve basic problems like power costs, labor costs and other costs of doing business,\u201d he added.
\nMeanwhile, University of the Philippines-Los Ba\u00f1os Economics Senior Lecturer Enrico P. Villanueva said there is a risk politicians will take advantage of the amendment process to advance their interests.
\n\u201cGovernment should focus its energies and resources instead on making the domestic business climate attractive. Costs of doing business should be lower (energy, transport, fees, bureaucracy, etc.), he said in a social media message.
\nMr. Villanueva noted that the definition of public services was eased under the Duterte administration to attract foreign investors, but FDI did not increase significantly.
\nMr. Yusingco also cited the Retail Trade Liberalization Act and the New Public Service Act as instances of the government seeking to remove obstacles to foreign ownership. \u2014 Aaron Michael C. Sy
\n", "content_text": "THE Foundation for Economic Freedom, Inc. (FEF) is proposing amending the Constitution\u2019s economic provisions to allow 100% foreign ownership of land, utilities, educational institutions, and mass media.\n\u201cWe believe that the removal of restrictive economic provisions sends a clear and compelling message to foreign investors, signaling a warm welcome to investment and business operations in the Philippines,\u201d the FEF said in a statement on Thursday.\n\u201cThe restrictions in the 1987 Constitution serve as constraints to developing areas of the economy where the Philippines has great promise such as mass media and renewable energy. The existing constitutional restrictions limit investments that we need to develop our creative industries,\u201d it added.\nThe FEF proposed to amend the following sections of the Constitution to allow 100% foreign ownership: Section 2, Article XII (National Patrimony and Economy); Section 3, Article XII (National Economy and Patrimony); Section 7, Article XII (National Patrimony and Economy); Section 10, Article XII (National Patrimony and Economy); Section 11, Article XII (National Patrimony and Economy); Section 4, Article XIV (Education, Science and Technology, Arts, Culture, and Sports); and Section 11, Article XVI (General Provisions).\nThe FEF also proposed the following amendments to the Filipino First provisions of the Constitution:\nSection 19, Article II (Declaration of Principles and State Policies): From \u201cThe State shall develop a self-reliant and independent national economy effectively controlled by Filipinos\u201d to \u201cThe State shall develop a self-reliant and independent national economy for the benefit of all Filipinos.\u201d\nSection 10, Article XII (National Economy and Patrimony): From \u201c\u2026In the grant of rights, privileges, and concessions covering the national economy and patrimony, the State shall give preference to qualified Filipinos\u2026\u201d to \u201c…in the grants of rights privileges, and concessions covering the national economy and patrimony, the State shall give preference to qualified investors.\u201d\nRemoving such restrictions in the Constitution could help policymakers respond more effectively to both global and domestic economic changes, the FEF said.\nCongress may still install safety nets within the constitution to ensure economic and social development, it added.\n\u201cWe strongly emphasize that constitutional amendments should be limited exclusively to economic provisions. This focused approach reduces the risk of political controversy and division, ensuring the swift passage of crucial amendments to the economic provisions of the Constitution,\u201d the FEF said.\nHowever, the FEF noted that amending the constitution alone won\u2019t sufficiently attract foreign investors as the government still needs to improve on upholding the rule of law, improving infrastructure, and ensuring ease of doing business.\nPolicy analyst and lawyer Michael Henry L. Yusingco said allowing 100% foreign ownership is not expected to boost foreign direct investments (FDI) significantly.\n\u201cBut if we also fix our power issues, labor productivity issues, and transportation issues, then the amendment of the economic provisions can lead to a boost in FDI specifically in the sectors concerned like education, mass media and power generation,\u201d he said via messenger.\n\u201cTo boost our FDI, we also need to solve basic problems like power costs, labor costs and other costs of doing business,\u201d he added.\nMeanwhile, University of the Philippines-Los Ba\u00f1os Economics Senior Lecturer Enrico P. Villanueva said there is a risk politicians will take advantage of the amendment process to advance their interests.\n\u201cGovernment should focus its energies and resources instead on making the domestic business climate attractive. Costs of doing business should be lower (energy, transport, fees, bureaucracy, etc.), he said in a social media message.\nMr. Villanueva noted that the definition of public services was eased under the Duterte administration to attract foreign investors, but FDI did not increase significantly.\nMr. Yusingco also cited the Retail Trade Liberalization Act and the New Public Service Act as instances of the government seeking to remove obstacles to foreign ownership. \u2014 Aaron Michael C. Sy", "date_published": "2024-01-04T20:48:47+08:00", "date_modified": "2024-01-04T20:48:47+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/04/elecnor-credit-elecnor.jpg", "tags": [ "Aaron Michael C. Sy", "Economy" ] }, { "id": "https://www.bworldonline.com/?p=567008", "url": "https://www.bworldonline.com/economy/2024/01/04/567008/shopee-to-offer-halal-products/", "title": "Shopee to offer halal products", "content_html": "\n
THE Department of Trade and Industry (DTI) and e-commerce site Shopee have entered a partnership to feature halal food sellers on the platform.
\n\u201cThis initiative aims to support micro, small, and medium enterprises (MSMEs) and make halal products accessible online for sellers and consumers,\u201d Shopee said in a statement.
\n\u201cIt also helps Shopee\u2019s goals to empower niche businesses to grow their online presence and broaden their market,\u201d it added.
\nUnder the partnership, Shopee will train potential sellers on selling on the e-commerce platform.
\nShopee\u2019s onboarding sessions will cover product listing guidelines, user interface navigation, and taking advantage of business insights generated from sales data.
\n\u201cOur collaboration with the DTI to onboard halal food sellers aligns with our commitment to supporting MSMEs and providing diverse options for our users,\u201d according to Vincent Lee, head of Shopee Philippines.
\nThe DTI\u2019s National Halal Strategy is counting on P230 billion in investment from the industry while generating 120,000 jobs over the next five years. The industry as defined in the plan encompasses halal-friendly travel and tourism, and halal fashion, pharmaceuticals and cosmetics.
\nThe National Halal Strategy assumes a global halal ecosystem with a market value of $7.7 trillion by 2025. \u2014 Justine Irish D. Tabile
\n", "content_text": "THE Department of Trade and Industry (DTI) and e-commerce site Shopee have entered a partnership to feature halal food sellers on the platform.\n\u201cThis initiative aims to support micro, small, and medium enterprises (MSMEs) and make halal products accessible online for sellers and consumers,\u201d Shopee said in a statement.\n\u201cIt also helps Shopee\u2019s goals to empower niche businesses to grow their online presence and broaden their market,\u201d it added.\nUnder the partnership, Shopee will train potential sellers on selling on the e-commerce platform.\nShopee\u2019s onboarding sessions will cover product listing guidelines, user interface navigation, and taking advantage of business insights generated from sales data.\n\u201cOur collaboration with the DTI to onboard halal food sellers aligns with our commitment to supporting MSMEs and providing diverse options for our users,\u201d according to Vincent Lee, head of Shopee Philippines.\nThe DTI\u2019s National Halal Strategy is counting on P230 billion in investment from the industry while generating 120,000 jobs over the next five years. The industry as defined in the plan encompasses halal-friendly travel and tourism, and halal fashion, pharmaceuticals and cosmetics.\nThe National Halal Strategy assumes a global halal ecosystem with a market value of $7.7 trillion by 2025. \u2014 Justine Irish D. Tabile", "date_published": "2024-01-04T20:48:28+08:00", "date_modified": "2024-01-04T20:48:28+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2024/01/shopee-logo.jpg", "tags": [ "Justine Irish D. Tabile", "Economy" ] }, { "id": "https://www.bworldonline.com/?p=566771", "url": "https://www.bworldonline.com/economy/2024/01/03/566771/improved-planning-needed-after-panay-outages-ngcp/", "title": "\u2018Improved planning\u2019 needed after Panay outages \u2014 NGCP", "content_html": "\n
THE National Grid Corp. of the Philippines (NGCP) has called for improved energy resource planning following the outages on Tuesday at multiple power plants on Panay Island.
\n\u201cThe unscheduled maintenance shutdowns of the largest power plants in Panay Island were the primary cause of the power interruption. We emphasize the need for improved planning to ensure sufficient generation per island, with a well-balanced mix of fuels and technology,\u201d NGCP said in a statement on Wednesday.
\nOn Tuesday, the NGCP issued a yellow alert for the Visayas grid after multiple power plants tripped, including units of Panay Energy Development Corp. and Palm Concepcion Power Corp. (PCPC).
\nDue to the plant outages, some 452 megawatts (MW) were unavailable to the grid.
\nAs of 5 p.m. on Wednesday, about 203 MW of power is being produced on Panay, augmented by 24.6 MW from \u201csources elsewhere in the Visayas.\u201d
\n\u201cWe reiterate that load restoration will be done conservatively, by matching loads to restored generation, to prevent repeated voltage failure. NGCP is ready to transmit power once it is available,\u201d the grid operator said.
\nThe Visayas grid needs about 300 MW to stabilize and is awaiting a PCPC facility, which has a 135-MW capacity, to synchronize back onto the grid.
\nIn a statement, the Department of Energy (DoE) reminded the NGCP to \u201cadhere to its responsibilities as system operator in ensuring supply security and reliability of the grid.\u201d
\n\u201cNGCP is in a position to anticipate system disturbance such as what happened yesterday, which unfortunately resulted in the isolation of Panay from the rest of the Visayas grid due to the simultaneous tripping of power plants that caused multiple power interruption affecting other power plants and distribution utilities (DUs),\u201d Energy Undersecretary Rowena Cristina L. Guevara said.
\nMeanwhile, the Energy Regulatory Commission (ERC) said it requested additional data from the NGCP and the generation companies to assist in its review of the incidents.
\n\u201cThe ERC understands the inconvenience this situation has caused to the consumers of Panay, and we assure the public that every effort is being made to restore power as quickly as possible,\u201d ERC Chairman Monalisa C. Dimalanta said.
\nOverall, the plant outage has affected a distribution utility and seven electric cooperatives, according to the NGCP.
\nThese are MORE Electric and Power Corp., Guimaras Electric Cooperative, Inc., Iloilo Electric Cooperative, Inc. (ILECO I), ILECO II, ILECO III, Capiz Electric Cooperative, Inc., Antique Electric Cooperative, Inc., Aklan Electric Cooperative, Inc., and Guimaras Electric Cooperative, Inc. \u2014 Sheldeen Joy Talavera
\n", "content_text": "THE National Grid Corp. of the Philippines (NGCP) has called for improved energy resource planning following the outages on Tuesday at multiple power plants on Panay Island.\n\u201cThe unscheduled maintenance shutdowns of the largest power plants in Panay Island were the primary cause of the power interruption. We emphasize the need for improved planning to ensure sufficient generation per island, with a well-balanced mix of fuels and technology,\u201d NGCP said in a statement on Wednesday.\nOn Tuesday, the NGCP issued a yellow alert for the Visayas grid after multiple power plants tripped, including units of Panay Energy Development Corp. and Palm Concepcion Power Corp. (PCPC).\nDue to the plant outages, some 452 megawatts (MW) were unavailable to the grid.\nAs of 5 p.m. on Wednesday, about 203 MW of power is being produced on Panay, augmented by 24.6 MW from \u201csources elsewhere in the Visayas.\u201d\n\u201cWe reiterate that load restoration will be done conservatively, by matching loads to restored generation, to prevent repeated voltage failure. NGCP is ready to transmit power once it is available,\u201d the grid operator said.\nThe Visayas grid needs about 300 MW to stabilize and is awaiting a PCPC facility, which has a 135-MW capacity, to synchronize back onto the grid.\nIn a statement, the Department of Energy (DoE) reminded the NGCP to \u201cadhere to its responsibilities as system operator in ensuring supply security and reliability of the grid.\u201d\n\u201cNGCP is in a position to anticipate system disturbance such as what happened yesterday, which unfortunately resulted in the isolation of Panay from the rest of the Visayas grid due to the simultaneous tripping of power plants that caused multiple power interruption affecting other power plants and distribution utilities (DUs),\u201d Energy Undersecretary Rowena Cristina L. Guevara said.\nMeanwhile, the Energy Regulatory Commission (ERC) said it requested additional data from the NGCP and the generation companies to assist in its review of the incidents.\n\u201cThe ERC understands the inconvenience this situation has caused to the consumers of Panay, and we assure the public that every effort is being made to restore power as quickly as possible,\u201d ERC Chairman Monalisa C. Dimalanta said.\nOverall, the plant outage has affected a distribution utility and seven electric cooperatives, according to the NGCP.\nThese are MORE Electric and Power Corp., Guimaras Electric Cooperative, Inc., Iloilo Electric Cooperative, Inc. (ILECO I), ILECO II, ILECO III, Capiz Electric Cooperative, Inc., Antique Electric Cooperative, Inc., Aklan Electric Cooperative, Inc., and Guimaras Electric Cooperative, Inc. \u2014 Sheldeen Joy Talavera", "date_published": "2024-01-03T20:25:59+08:00", "date_modified": "2024-01-03T20:25:59+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/05/electric-tower-pylon-1.jpg", "tags": [ "Sheldeen Joy Talavera", "Economy", "Editors' Picks", "One News" ] }, { "id": "https://www.bworldonline.com/?p=566770", "url": "https://www.bworldonline.com/economy/2024/01/03/566770/market-for-as-power-enters-pilot-operations/", "title": "Market for AS power enters pilot operations", "content_html": "\n
THE pilot stage of the market for reserve power has been launched, with full commercial operations targeted for later in the month, the Independent Electricity Market Operator of the Philippines (IEMOP) said.
\nIn a statement on Wednesday, the IEMOP said pilot operations began on Dec. 26, 2023.
\nThe pilot stage will allow the optimization of the market operator and system operator interfaces and automated real-time dispatch of committed ancillary services (AS). AS contracts are entered into in order to ensure that the grid will have sufficient power should supply be disrupted unexpectedly.
\nThe pilot stage will trial central scheduling and dispatch of contracted ancillary services using enhanced systems of the market operator and system operator, or the National Grid Corp. of the Philippines.
\nIEMOP operates the Wholesale Electricity Spot Market (WESM), the trading floor for electricity.
\nWith the set integration of the reserve market for AS power into the WESM on Jan. 26, the system operator will be able to procure reserves from the spot market to meet the reserve requirements of the system.
\nThe IEMOP said that the reserve market provides a venue for generators to offer reserve capacities competitively. \u201cThese reserve offers are co-optimized with energy offers to determine the best mix of energy and reserve supply that will result in the most competitive prices for electricity.\u201d
\n\u201cUltimately, the co-optimization of the scheduling of reserves and energy has the objective of reducing the overall cost of both energy and reserves,\u201d the IEMOP said.
\n\u201cThe operation of the Reserve Market in the Philippine WESM is a testament to our shared commitment to the growth of the Philippine Energy Sector; a growth that ensures reliability, embraces innovation, and promotes competition, all leading to transparency and reasonableness of our power rates,\u201d Energy Regulatory Commission (ERC) Chairperson Monalisa C. Dimalanta said.
\nAsked to comment, Bienvenido S. Oplas, Jr., president of Minimal Government Thinkers said that the reserve market will expand power supply by encouraging generation companies (gencos) to build more power plants.
\n\u201cMost of new generation capacity will be contracted by DUs (distribution utilities), RES (retail electricity suppliers) and ECs (electric cooperatives). But some generation capacity will be for reserves by the system operator or embedded with DUs themselves,\u201d Mr. Oplas said in a Viber message.
\n\u201cThe market for new capacity has expanded so more gencos will be encouraged to put up more new power plants,\u201d he added.
\nIn an advisory last week, the Department of Energy said that the WESM Governance Arm has yet to issue a certification on the completeness of the preparations.
\nThe software certification by the independent auditor is still pending while the ERC is still reviewing the simulation results for additional constraints submitted by the IEMOP for the approval of the price determination methodology.\u00a0
\nMeanwhile, the Philippine Electricity Market Corp. (PEMC) said in a statement that it will assess and monitor the co-optimized market once fully operational to ensure the delivery of its commitment and intent of the enhanced WESM design.
\n\u201cOur commitment to fulfill PEMC\u2019s responsibility to facilitate the readiness certification for the full commercial operations of the co-optimized Energy and Reserve Market have remained steadfast,\u201d PEMC President Elvin Hayes E. Nidea said. \u2014 Sheldeen Joy Talavera
\n", "content_text": "THE pilot stage of the market for reserve power has been launched, with full commercial operations targeted for later in the month, the Independent Electricity Market Operator of the Philippines (IEMOP) said.\nIn a statement on Wednesday, the IEMOP said pilot operations began on Dec. 26, 2023.\nThe pilot stage will allow the optimization of the market operator and system operator interfaces and automated real-time dispatch of committed ancillary services (AS). AS contracts are entered into in order to ensure that the grid will have sufficient power should supply be disrupted unexpectedly.\nThe pilot stage will trial central scheduling and dispatch of contracted ancillary services using enhanced systems of the market operator and system operator, or the National Grid Corp. of the Philippines.\nIEMOP operates the Wholesale Electricity Spot Market (WESM), the trading floor for electricity.\nWith the set integration of the reserve market for AS power into the WESM on Jan. 26, the system operator will be able to procure reserves from the spot market to meet the reserve requirements of the system.\nThe IEMOP said that the reserve market provides a venue for generators to offer reserve capacities competitively. \u201cThese reserve offers are co-optimized with energy offers to determine the best mix of energy and reserve supply that will result in the most competitive prices for electricity.\u201d\n\u201cUltimately, the co-optimization of the scheduling of reserves and energy has the objective of reducing the overall cost of both energy and reserves,\u201d the IEMOP said.\n\u201cThe operation of the Reserve Market in the Philippine WESM is a testament to our shared commitment to the growth of the Philippine Energy Sector; a growth that ensures reliability, embraces innovation, and promotes competition, all leading to transparency and reasonableness of our power rates,\u201d Energy Regulatory Commission (ERC) Chairperson Monalisa C. Dimalanta said.\nAsked to comment, Bienvenido S. Oplas, Jr., president of Minimal Government Thinkers said that the reserve market will expand power supply by encouraging generation companies (gencos) to build more power plants.\n\u201cMost of new generation capacity will be contracted by DUs (distribution utilities), RES (retail electricity suppliers) and ECs (electric cooperatives). But some generation capacity will be for reserves by the system operator or embedded with DUs themselves,\u201d Mr. Oplas said in a Viber message.\n\u201cThe market for new capacity has expanded so more gencos will be encouraged to put up more new power plants,\u201d he added.\nIn an advisory last week, the Department of Energy said that the WESM Governance Arm has yet to issue a certification on the completeness of the preparations.\nThe software certification by the independent auditor is still pending while the ERC is still reviewing the simulation results for additional constraints submitted by the IEMOP for the approval of the price determination methodology.\u00a0\nMeanwhile, the Philippine Electricity Market Corp. (PEMC) said in a statement that it will assess and monitor the co-optimized market once fully operational to ensure the delivery of its commitment and intent of the enhanced WESM design.\n\u201cOur commitment to fulfill PEMC\u2019s responsibility to facilitate the readiness certification for the full commercial operations of the co-optimized Energy and Reserve Market have remained steadfast,\u201d PEMC President Elvin Hayes E. Nidea said. \u2014 Sheldeen Joy Talavera", "date_published": "2024-01-03T20:25:36+08:00", "date_modified": "2024-01-03T20:25:36+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2021/10/spot-market-prices-filefoto.jpg", "tags": [ "Sheldeen Joy Talavera", "Economy", "Editors' Picks", "One News" ] }, { "id": "https://www.bworldonline.com/?p=566769", "url": "https://www.bworldonline.com/economy/2024/01/03/566769/exportable-agri-commodities-focus-of-new-da-devt-plan/", "title": "Exportable agri commodities focus of new DA dev\u2019t plan", "content_html": "\n
THE Department of Agriculture (DA) said it is seeking to expand agricultural and fisheries exports and has set into motion the drafting of the Philippine Agricultural Export Development Plan (PAEDP).
\nAccording to a special order signed by Agriculture Secretary Francisco Tiu Laurel, Jr., the DA will create a national steering committee and technical working group to prepare the plan.
\nThe DA said the national steering committee will set the policy direction that the plan will then flesh out.
\nIt added that a technical working group will help create the mechanisms to facilitate exports and ensure that activities and programs are aligned with the Philippine Export Development Plan (2023-2028).
\n\u201cMember agencies shall create their respective core group that will (assist in) the creation of the PAEDP and provide technical assistance on matters related to export development,\u201d the DA said.
\nThe DA added that the technical working group will seek to identify priority commodities with the strongest export potential.
\nThe steering committee will be headed by Mr. Laurel with all DA undersecretaries as members, while Assistant Secretary for Policy Research and Development Noel A. Padre will head the technical working group.
\nAgricultural exports declined 13.3% to $1.61 billion during the third quarter of 2023, accounting for 8.2% of total exports, according to the Philippine Statistics Authority.
\nLeading exports were edible fruit and nuts as well as peel of citrus fruit melons, valued at $492.09 million or 30.5% of the total.
\nAmong the top five exported commodities were animal and vegetable fats; preparations of vegetables, fruit, nuts or other parts of plants; tobacco and manufactured substitutes; and preparations of meat of fish, crustacean, mollusks and other aquatic invertebrates.
\nPresident Ferdinand R. Marcos, Jr. has said that the government is focusing on increasing exports of agricultural products to make the economy more competitive. \u2014 Adrian H. Halili
\n", "content_text": "THE Department of Agriculture (DA) said it is seeking to expand agricultural and fisheries exports and has set into motion the drafting of the Philippine Agricultural Export Development Plan (PAEDP).\nAccording to a special order signed by Agriculture Secretary Francisco Tiu Laurel, Jr., the DA will create a national steering committee and technical working group to prepare the plan.\nThe DA said the national steering committee will set the policy direction that the plan will then flesh out.\nIt added that a technical working group will help create the mechanisms to facilitate exports and ensure that activities and programs are aligned with the Philippine Export Development Plan (2023-2028).\n\u201cMember agencies shall create their respective core group that will (assist in) the creation of the PAEDP and provide technical assistance on matters related to export development,\u201d the DA said.\nThe DA added that the technical working group will seek to identify priority commodities with the strongest export potential.\nThe steering committee will be headed by Mr. Laurel with all DA undersecretaries as members, while Assistant Secretary for Policy Research and Development Noel A. Padre will head the technical working group.\nAgricultural exports declined 13.3% to $1.61 billion during the third quarter of 2023, accounting for 8.2% of total exports, according to the Philippine Statistics Authority.\nLeading exports were edible fruit and nuts as well as peel of citrus fruit melons, valued at $492.09 million or 30.5% of the total.\nAmong the top five exported commodities were animal and vegetable fats; preparations of vegetables, fruit, nuts or other parts of plants; tobacco and manufactured substitutes; and preparations of meat of fish, crustacean, mollusks and other aquatic invertebrates.\nPresident Ferdinand R. Marcos, Jr. has said that the government is focusing on increasing exports of agricultural products to make the economy more competitive. \u2014 Adrian H. Halili", "date_published": "2024-01-03T20:25:01+08:00", "date_modified": "2024-01-03T20:25:01+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2022/06/bananas-worker.jpg", "tags": [ "Adrian H. Halili", "Economy", "Editors' Picks", "One News" ] }, { "id": "https://www.bworldonline.com/?p=566768", "url": "https://www.bworldonline.com/economy/2024/01/03/566768/only-19-lgus-declared-compliant-with-business-one-stop-shop-rules/", "title": "\u2018Only\u2019 19 LGUs declared compliant with business one-stop shop rules", "content_html": "\n
THE Anti-Red Tape Authority (ARTA) said only 19 local government units (LGUs) out of 1,637 are fully compliant with the electronic business one-stop shop (eBOSS) requirement of the Ease of Doing Business (EODB) law.
\n\u201cOut of 1,637 LGUs, 630 have reported that they are now (implementing the law). But validation by the ARTA Compliance Monitoring and Evaluation Office showed that only 19 LGUs are fully compliant, which means that they are fully automated, while 611 LGUs are only partially automated,\u201d ARTA Secretary Ernesto Perez said in an interview with government network PTV.
\n\u201cWe are continuously doing our compliance audit together with the Department of Interior and Local Government (DILG) and Department of Information and Communications Technology (DICT),\u201d he added.
\neBOSS is one of the flagship programs of ARTA. It aims to streamline procedures for applications and issuance of local business licenses and permits via a single digital portal accessible on demand.
\nMr. Perez said the President has tasked ARTA and other government agencies to implement a nationwide rollout of the eBOSS platform to help non-compliant LGUs.
\n\u201cPresident Marcos himself ordered us together with the Presidential Management Staff, DILG and DICT to hold a nationwide rollout tentatively in the last week of January,\u201d he said.
\nMr. Perez said that ARTA will be helping the LGUs by donating hardware and providing technical assistance.
\n\u201cThis is so our LGUs will not have any reason to not comply with the requirements,\u201d he added.
\nAside from eBOSS, ARTA also wants to hasten the issuance of permits and licenses for telecommunications towers.
\n\u201cThrough this, more than 36,000 permits have been issued just for one year of implementation,\u201d Mr. Perez said.
\nARTA, through its Compliance Monitoring and Evaluation Office, is also implementing Report Card Surveys which evaluate the compliance of covered agencies and LGUs with the requirements of the EoDB law.
\n\u201cBased on our report, 94.72% of the covered agencies have submitted their updated citizen\u2019s charter,\u201d he said. \u2014 Justine Irish D. Tabile
\n", "content_text": "THE Anti-Red Tape Authority (ARTA) said only 19 local government units (LGUs) out of 1,637 are fully compliant with the electronic business one-stop shop (eBOSS) requirement of the Ease of Doing Business (EODB) law.\n\u201cOut of 1,637 LGUs, 630 have reported that they are now (implementing the law). But validation by the ARTA Compliance Monitoring and Evaluation Office showed that only 19 LGUs are fully compliant, which means that they are fully automated, while 611 LGUs are only partially automated,\u201d ARTA Secretary Ernesto Perez said in an interview with government network PTV.\n\u201cWe are continuously doing our compliance audit together with the Department of Interior and Local Government (DILG) and Department of Information and Communications Technology (DICT),\u201d he added.\neBOSS is one of the flagship programs of ARTA. It aims to streamline procedures for applications and issuance of local business licenses and permits via a single digital portal accessible on demand.\nMr. Perez said the President has tasked ARTA and other government agencies to implement a nationwide rollout of the eBOSS platform to help non-compliant LGUs.\n\u201cPresident Marcos himself ordered us together with the Presidential Management Staff, DILG and DICT to hold a nationwide rollout tentatively in the last week of January,\u201d he said.\nMr. Perez said that ARTA will be helping the LGUs by donating hardware and providing technical assistance.\n\u201cThis is so our LGUs will not have any reason to not comply with the requirements,\u201d he added.\nAside from eBOSS, ARTA also wants to hasten the issuance of permits and licenses for telecommunications towers.\n\u201cThrough this, more than 36,000 permits have been issued just for one year of implementation,\u201d Mr. Perez said.\nARTA, through its Compliance Monitoring and Evaluation Office, is also implementing Report Card Surveys which evaluate the compliance of covered agencies and LGUs with the requirements of the EoDB law.\n\u201cBased on our report, 94.72% of the covered agencies have submitted their updated citizen\u2019s charter,\u201d he said. \u2014 Justine Irish D. Tabile", "date_published": "2024-01-03T20:24:30+08:00", "date_modified": "2024-01-03T20:24:30+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2022/09/ARTA-LOGO.jpg", "tags": [ "Justine Irish D. Tabile", "Economy", "One News" ] }, { "id": "https://www.bworldonline.com/?p=566767", "url": "https://www.bworldonline.com/economy/2024/01/03/566767/dbm-allots-p550-million-for-kidney-institute/", "title": "DBM allots P550 million for kidney institute", "content_html": "THE Department of Budget and Management (DBM) said it approved the release of P550 million for an outpatient department (OPD) building at the National Kidney and Transplant Institute (NKTI).\u00a0
\nBudget Secretary Amenah F. Pangandaman in a statement on Wednesday said the issuance of Special Allotment Release Orders will support efforts to enhance the healthcare system.
\n\u201cPresident Ferdinand R. Marcos, Jr. has always said no Filipino should be deprived of quality healthcare. That\u2019s why we continuously give high regard to our healthcare facilities, more importantly, our specialty hospitals like NKTI,\u201d Ms. Pangandaman said.
\nThe funds will finance the construction and expansion of an eight-storey OPD building for NKTI, the DBM said.
\nThe building is designed to house services like diagnostic and surgical facilities, it added.
\nThe proposed building will help the NKTI achieve its mission of treating and preventing kidney and allied diseases, the DBM said.
\nThe OPD building will ultimately cost P1.331 billion, the DBM noted. \u2014 Aaron Michael C. Sy
\n", "content_text": "THE Department of Budget and Management (DBM) said it approved the release of P550 million for an outpatient department (OPD) building at the National Kidney and Transplant Institute (NKTI).\u00a0\nBudget Secretary Amenah F. Pangandaman in a statement on Wednesday said the issuance of Special Allotment Release Orders will support efforts to enhance the healthcare system.\n\u201cPresident Ferdinand R. Marcos, Jr. has always said no Filipino should be deprived of quality healthcare. That\u2019s why we continuously give high regard to our healthcare facilities, more importantly, our specialty hospitals like NKTI,\u201d Ms. Pangandaman said.\nThe funds will finance the construction and expansion of an eight-storey OPD building for NKTI, the DBM said.\nThe building is designed to house services like diagnostic and surgical facilities, it added.\nThe proposed building will help the NKTI achieve its mission of treating and preventing kidney and allied diseases, the DBM said.\nThe OPD building will ultimately cost P1.331 billion, the DBM noted. \u2014 Aaron Michael C. Sy", "date_published": "2024-01-03T20:24:04+08:00", "date_modified": "2024-01-03T20:28:32+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2024/01/National-Kidney-and-Transplant-Institute-1.jpg", "tags": [ "Aaron Michael C. Sy", "Economy" ] }, { "id": "https://www.bworldonline.com/?p=566766", "url": "https://www.bworldonline.com/economy/2024/01/03/566766/birs-road-to-digitalization/", "title": "BIR\u2019s road to digitalization", "content_html": "\n
\n
The Bureau of Internal Revenue (BIR) has recognize the need to adapt to take advantage of fast-evolving technology to ensure it collects its rightful share of taxes from the digital economy. To do this, it has mapped out a 10-year digital roadmap. The roadmap incorporates the tools necessary to maximize resources at the BIR and ensure maximum value for the organization. It is anchored on three principles \u2014 (i) adopting a people-first approach; (ii) instituting a process perspective; and (iii) embracing digital technology, with the digital transformation mindset as its foundation. In addition, the roadmap consists of various digitalization projects that would modernize and digitalize tax administration, consistent with the objectives of Republic Act No. 11032, or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, to reduce red tape. As it applies to the BIR, the law means making tax compliance more convenient for taxpayers.
\nOne of the notable projects under the BIR\u2019s Digital Transformation initiative is the launch of the Online Registration and Update System (ORUS), a web-based system that provides an end-to-end process for registering taxpayers and updating their information. With the implementation of ORUS, taxpayers may skip the long queues and register and update their information with the BIR from the comfort of their homes.
\nUnder Executive Order No. 98, series of 1999, all persons whether natural or juridical, dealing with all government agencies and instrumentalities, are required to provide their tax identification numbers (TIN) on all forms, permits, licenses, clearances, official papers and documents which they secure from and file with government agencies. This directive was issued as TINs are essential for our tax authorities to trace taxable transactions of persons and monitor their tax compliance.
\nIn line with the Executive Order, BIR Revenue Regulations No. 7-2012 directs non-resident aliens not engaged in trade or business in the Philippines or non-resident foreign corporations to obtain TINs for the purpose of withholding taxes on their income from sources in the Philippines. The withholding agent is required to apply for the TIN on their behalf prior to or at the time of the filing of their withholding tax returns.
\nMoreover, Securities and Exchange Commission (SEC) Memorandum Circular No. 1, series of 2013, requires the inclusion of TINs of foreign investors (natural and juridical persons) in all forms, papers and documents filed with the SEC. In this regard, corporations filing their general information sheets (GIS) with the SEC are required to first secure TINs for their investors and stockholders, whether natural or juridical persons. If the TIN is missing, the SEC is to return the GIS.
\nWith the launch of ORUS and the issuance of BIR Revenue Memorandum Circular (RMC) No. 120-2023, Filipino citizens and foreign nationals may now apply for TIN online without lining up at their respective Revenue District Offices (RDOs) and physically submitting hard copies of their application documents. Individuals and corporations may create an account in ORUS by filling out the necessary information and uploading the relevant documents in order to secure their TINs. Although the TIN application is now done online, the documentary requirements are still the same as in the previous practice (physical filing).
\nRMC 120-2023 is the BIR\u2019s announcement of the availability of digital TINs through ORUS. With this new feature, individual taxpayers may secure their digital TIN identification document (ID) through the website starting Nov. 21, 2023, by creating an account and registering as a taxpayer. Those with previously issued TINs, whether or not they have been issued a physical TIN ID, may also still register with ORUS. It is worth noting that taxpayers who will be applying for a digital TIN ID are required to update their e-mail address at the RDO where they are registered by accomplishing and submitting BIR Form S1905 (Registration Update Sheet) via e-mail to their respective RDOs or through BIR\u2019s eServices \u2014 Taxpayer Registration Related Application portal. Should there be any changes or updates that must be made after securing the digital TIN ID, taxpayers may re-generate their ID through the same website after 30 days from the first or last digital TIN ID generation, whichever is applicable.
\nDigital TIN IDs are to be honored and accepted as a valid government-issued ID for taxpayers to transact with government agencies and institutions, local government units, employers, banks, financial institutions and other relying parties. While digital TIN IDs do not have signatures, the authenticity of this ID may quickly be verified through ORUS as well by scanning the Quick Response (QR) code that may be found on the digital ID.
\nWe have seen a number of the BIR\u2019s Digital Transformation projects go live, making tax administration more efficient. Taxpayers remain hopeful that the BIR launches the remaining Digital Transformation projects to make tax compliance more convenient.
\nThe views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.
\n\n
Jerimae Celine N. Galope is a senior associate at the Tax Services department of Isla Lipana & Co., the Philippine member firm of PricewaterhouseCoopers global network.
\njerimae.celine.n.galope@pwc.com
\n", "content_text": "The Bureau of Internal Revenue (BIR) has recognize the need to adapt to take advantage of fast-evolving technology to ensure it collects its rightful share of taxes from the digital economy. To do this, it has mapped out a 10-year digital roadmap. The roadmap incorporates the tools necessary to maximize resources at the BIR and ensure maximum value for the organization. It is anchored on three principles \u2014 (i) adopting a people-first approach; (ii) instituting a process perspective; and (iii) embracing digital technology, with the digital transformation mindset as its foundation. In addition, the roadmap consists of various digitalization projects that would modernize and digitalize tax administration, consistent with the objectives of Republic Act No. 11032, or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, to reduce red tape. As it applies to the BIR, the law means making tax compliance more convenient for taxpayers.\nOne of the notable projects under the BIR\u2019s Digital Transformation initiative is the launch of the Online Registration and Update System (ORUS), a web-based system that provides an end-to-end process for registering taxpayers and updating their information. With the implementation of ORUS, taxpayers may skip the long queues and register and update their information with the BIR from the comfort of their homes. \nUnder Executive Order No. 98, series of 1999, all persons whether natural or juridical, dealing with all government agencies and instrumentalities, are required to provide their tax identification numbers (TIN) on all forms, permits, licenses, clearances, official papers and documents which they secure from and file with government agencies. This directive was issued as TINs are essential for our tax authorities to trace taxable transactions of persons and monitor their tax compliance.\nIn line with the Executive Order, BIR Revenue Regulations No. 7-2012 directs non-resident aliens not engaged in trade or business in the Philippines or non-resident foreign corporations to obtain TINs for the purpose of withholding taxes on their income from sources in the Philippines. The withholding agent is required to apply for the TIN on their behalf prior to or at the time of the filing of their withholding tax returns.\nMoreover, Securities and Exchange Commission (SEC) Memorandum Circular No. 1, series of 2013, requires the inclusion of TINs of foreign investors (natural and juridical persons) in all forms, papers and documents filed with the SEC. In this regard, corporations filing their general information sheets (GIS) with the SEC are required to first secure TINs for their investors and stockholders, whether natural or juridical persons. If the TIN is missing, the SEC is to return the GIS.\nWith the launch of ORUS and the issuance of BIR Revenue Memorandum Circular (RMC) No. 120-2023, Filipino citizens and foreign nationals may now apply for TIN online without lining up at their respective Revenue District Offices (RDOs) and physically submitting hard copies of their application documents. Individuals and corporations may create an account in ORUS by filling out the necessary information and uploading the relevant documents in order to secure their TINs. Although the TIN application is now done online, the documentary requirements are still the same as in the previous practice (physical filing).\nRMC 120-2023 is the BIR\u2019s announcement of the availability of digital TINs through ORUS. With this new feature, individual taxpayers may secure their digital TIN identification document (ID) through the website starting Nov. 21, 2023, by creating an account and registering as a taxpayer. Those with previously issued TINs, whether or not they have been issued a physical TIN ID, may also still register with ORUS. It is worth noting that taxpayers who will be applying for a digital TIN ID are required to update their e-mail address at the RDO where they are registered by accomplishing and submitting BIR Form S1905 (Registration Update Sheet) via e-mail to their respective RDOs or through BIR\u2019s eServices \u2014 Taxpayer Registration Related Application portal. Should there be any changes or updates that must be made after securing the digital TIN ID, taxpayers may re-generate their ID through the same website after 30 days from the first or last digital TIN ID generation, whichever is applicable.\nDigital TIN IDs are to be honored and accepted as a valid government-issued ID for taxpayers to transact with government agencies and institutions, local government units, employers, banks, financial institutions and other relying parties. While digital TIN IDs do not have signatures, the authenticity of this ID may quickly be verified through ORUS as well by scanning the Quick Response (QR) code that may be found on the digital ID.\nWe have seen a number of the BIR\u2019s Digital Transformation projects go live, making tax administration more efficient. Taxpayers remain hopeful that the BIR launches the remaining Digital Transformation projects to make tax compliance more convenient.\nThe views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.\n \nJerimae Celine N. Galope is a senior associate at the Tax Services department of Isla Lipana & Co., the Philippine member firm of PricewaterhouseCoopers global network.\njerimae.celine.n.galope@pwc.com", "date_published": "2024-01-03T20:23:31+08:00", "date_modified": "2024-01-03T20:23:31+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2021/04/economy-default.jpg", "tags": [ "Jerimae Celine N. Galope", "Taxwise or Otherwise", "Economy" ] }, { "id": "https://www.bworldonline.com/?p=566491", "url": "https://www.bworldonline.com/economy/2024/01/02/566491/international-visitor-arrivals-hit-5-45m-in-2023/", "title": "International visitor arrivals hit 5.45M in 2023", "content_html": "\n
THE PHILIPPINES logged 5.45 million international visitors in 2023, beating the 4.8 million target, the Department of Tourism (DoT) said on Tuesday.
\n\u201cFrom Jan. 1 to Dec. 31, 2023\u2026 91.8% or the bulk of international arrivals recorded at 5,003,475 were foreigners. The remaining 8.2% or 447,082 are overseas Filipinos,\u201d the DoT said in a statement.
\nThe 2023 total more than doubled the 2.6 million reported a year prior.
\nSouth Korea remained the top source of foreign arrivals during the year, accounting for 1.44 million tourists or 26.41% of the total.
\nAlso in the top five were the US with 903,299 tourists (16.57%), Japan 305,580 (5.61%), Australia 266,551 (4.89%), and China 263,836 (4.84 %).
\n\u201cOther foreigners who visited the country from other top source markets after China were from Canada, Taiwan, the UK, Singapore, and Malaysia,\u201d it added.
\nThe DoT said that total international tourism receipts for the year amounted to P482.54 billion. This was more than double the P214.58 billion from a year earlier.
\nIt added that the Philippines was at about 66% of the pre-pandemic arrivals record posted in 2019.
\nInternational arrivals in 2019 amounted to 8.26 million, generating P482.15 billion in receipts, according to the DoT.
\n\u201cWe have set our goals for the industry not only in terms of international visitor arrivals but most importantly, the number of Filipinos, including their families, who will benefit from the opportunities generated by our efforts to make the industry prosper,\u201d Tourism Secretary Maria Esperanza Christina G. Frasco said.
\n\u201cWe are poised for a thriving tourism landscape, evident in surpassing our targets in international and domestic arrivals and receipts, fostering economic prosperity and further job creation for our people,\u201d she said.
\nThe DoT is targeting 7.7 million international visitors for 2024. \u2014 Adrian H. Halili
\n", "content_text": "THE PHILIPPINES logged 5.45 million international visitors in 2023, beating the 4.8 million target, the Department of Tourism (DoT) said on Tuesday.\n\u201cFrom Jan. 1 to Dec. 31, 2023\u2026 91.8% or the bulk of international arrivals recorded at 5,003,475 were foreigners. The remaining 8.2% or 447,082 are overseas Filipinos,\u201d the DoT said in a statement.\nThe 2023 total more than doubled the 2.6 million reported a year prior.\nSouth Korea remained the top source of foreign arrivals during the year, accounting for 1.44 million tourists or 26.41% of the total.\nAlso in the top five were the US with 903,299 tourists (16.57%), Japan 305,580 (5.61%), Australia 266,551 (4.89%), and China 263,836 (4.84 %).\n\u201cOther foreigners who visited the country from other top source markets after China were from Canada, Taiwan, the UK, Singapore, and Malaysia,\u201d it added.\nThe DoT said that total international tourism receipts for the year amounted to P482.54 billion. This was more than double the P214.58 billion from a year earlier.\nIt added that the Philippines was at about 66% of the pre-pandemic arrivals record posted in 2019.\nInternational arrivals in 2019 amounted to 8.26 million, generating P482.15 billion in receipts, according to the DoT.\n\u201cWe have set our goals for the industry not only in terms of international visitor arrivals but most importantly, the number of Filipinos, including their families, who will benefit from the opportunities generated by our efforts to make the industry prosper,\u201d Tourism Secretary Maria Esperanza Christina G. Frasco said.\n\u201cWe are poised for a thriving tourism landscape, evident in surpassing our targets in international and domestic arrivals and receipts, fostering economic prosperity and further job creation for our people,\u201d she said.\nThe DoT is targeting 7.7 million international visitors for 2024. \u2014 Adrian H. Halili", "date_published": "2024-01-02T20:30:53+08:00", "date_modified": "2024-01-02T20:30:53+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/07/El-Nido.jpg", "tags": [ "Adrian H. Halili", "Economy", "Editors' Picks", "One News" ] }, { "id": "https://www.bworldonline.com/?p=566490", "url": "https://www.bworldonline.com/economy/2024/01/02/566490/doe-blames-metering-problems-for-low-lifeline-rate-registration/", "title": "DoE blames metering problems for low lifeline rate registration", "content_html": "\n
THE Department of Energy (DoE) said registration for the lifeline rate program has been hindered by the practice of several households sharing power meters, making consumption by eligible users difficult to track.
\nLuningning G. Baltazar, director of the DoE\u2019s Electric Power Industry Management Bureau, said users who would otherwise qualify for the lifeline rate cannot register because their homes did not have a dedicated meter.
\n\u201cWe will look into how we can address this issue,\u201d Ms. Baltazar told government television network on Tuesday.
\nShe added that registering as a group of households would bring many poor users above the lifeline consumption threshold, making them ineligible for subsidized power rates.
\n\u201cWe still encourage them to register since we are still studying the question of what would be the appropriate threshold,\u201d she said.
\nThe lifeline rate applies to users with a monthly power consumption of 100 kilowatt-hours or less. Under the revised rules, customers living in condominiums, subdivisions, and those with net-metering services do not qualify for the lifeline rate even if their consumption falls below the threshold.
\nAlso, eligible for lifeline rates are beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) and qualified marginalized end-user applicants who are not 4Ps beneficiaries but belong to a household of at least five members in which the combined monthly income is no more than P12,030.
\nCiting ERC data, Ms. Baltazar said that about 191,399 4Ps members were registered for the program as of Dec. 15. However, she said that the full list of 4Ps members is about 4.2 million, according to the Department of Social Welfare and Development.
\nThe ERC said in an advisory last week that the full implementation of the program starts on Jan. 1.
\n\u201cWe will continue to do the lifeline caravan, information campaign so that many will be aware of the program,\u201d Ms. Baltazar said. \u2014 Sheldeen Joy Talavera
\n", "content_text": "THE Department of Energy (DoE) said registration for the lifeline rate program has been hindered by the practice of several households sharing power meters, making consumption by eligible users difficult to track.\nLuningning G. Baltazar, director of the DoE\u2019s Electric Power Industry Management Bureau, said users who would otherwise qualify for the lifeline rate cannot register because their homes did not have a dedicated meter.\n\u201cWe will look into how we can address this issue,\u201d Ms. Baltazar told government television network on Tuesday.\nShe added that registering as a group of households would bring many poor users above the lifeline consumption threshold, making them ineligible for subsidized power rates.\n\u201cWe still encourage them to register since we are still studying the question of what would be the appropriate threshold,\u201d she said.\nThe lifeline rate applies to users with a monthly power consumption of 100 kilowatt-hours or less. Under the revised rules, customers living in condominiums, subdivisions, and those with net-metering services do not qualify for the lifeline rate even if their consumption falls below the threshold.\nAlso, eligible for lifeline rates are beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) and qualified marginalized end-user applicants who are not 4Ps beneficiaries but belong to a household of at least five members in which the combined monthly income is no more than P12,030.\nCiting ERC data, Ms. Baltazar said that about 191,399 4Ps members were registered for the program as of Dec. 15. However, she said that the full list of 4Ps members is about 4.2 million, according to the Department of Social Welfare and Development.\nThe ERC said in an advisory last week that the full implementation of the program starts on Jan. 1.\n\u201cWe will continue to do the lifeline caravan, information campaign so that many will be aware of the program,\u201d Ms. Baltazar said. \u2014 Sheldeen Joy Talavera", "date_published": "2024-01-02T20:30:10+08:00", "date_modified": "2024-01-02T20:30:10+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2021/09/electric-meter-040519.jpg", "tags": [ "Sheldeen Joy Talavera", "Economy", "Editors' Picks", "One News" ] }, { "id": "https://www.bworldonline.com/?p=566489", "url": "https://www.bworldonline.com/economy/2024/01/02/566489/boi-planning-push-to-encourage-more-biofertilizer-use-in-rice-corn-farming/", "title": "BoI planning push to encourage more biofertilizer use in rice, corn farming", "content_html": "\n
THE Board of Investments (BoI) said on Tuesday that it will support a biofertilizer company in its capacity expansion by helping to promote the expanded use of its products and encouraging investment to develop the industry.
\n\u201cEncouraging potential technology adaptors to invest in this industry, the BoI and other stakeholders aim to strengthen the information dissemination and education campaign for farmers to facilitate the shift from traditional fertilizer to biofertilizer,\u201d the BoI said in a statement.
\nThe BoI added that it will support the commercialization of the Bio-N fertilizer product which promises to raise crop yields by 11%.
\nThe BoI said the campaign will be undertaken in collaboration with Laguna-based AgriSpecialist, Inc. (ASI), a Laguna company.
\n\u201cBoth BoI and AgriSpecialist agreed (on the importance of) having an industrialization partner from the beginning of the research and development process,\u201d it added.
\nASI President Mario Labadan, Jr. said farmers should be made aware of the advantages of using biofertilizer, which will be a domestically produced product.
\nAccording to the BoI, about five to six 200-gram sachets of the biofertilizer product can replace two 50-kilogram bags of urea per hectare planted to rice. The product has the potential to save producers about P10,000 per hectare.
\nASI said that it aims to become the first commercial-scale manufacturer of biofertilizer.
\nExpansion plans for its Laguna plant will result in sufficient capacity to supply \u201c100% of the country\u2019s biofertilizer requirement for the lands planted to rice and corn.\u201d \u2014 Adrian H. Halili
\n", "content_text": "THE Board of Investments (BoI) said on Tuesday that it will support a biofertilizer company in its capacity expansion by helping to promote the expanded use of its products and encouraging investment to develop the industry.\n\u201cEncouraging potential technology adaptors to invest in this industry, the BoI and other stakeholders aim to strengthen the information dissemination and education campaign for farmers to facilitate the shift from traditional fertilizer to biofertilizer,\u201d the BoI said in a statement.\nThe BoI added that it will support the commercialization of the Bio-N fertilizer product which promises to raise crop yields by 11%.\nThe BoI said the campaign will be undertaken in collaboration with Laguna-based AgriSpecialist, Inc. (ASI), a Laguna company.\n\u201cBoth BoI and AgriSpecialist agreed (on the importance of) having an industrialization partner from the beginning of the research and development process,\u201d it added.\nASI President Mario Labadan, Jr. said farmers should be made aware of the advantages of using biofertilizer, which will be a domestically produced product.\nAccording to the BoI, about five to six 200-gram sachets of the biofertilizer product can replace two 50-kilogram bags of urea per hectare planted to rice. The product has the potential to save producers about P10,000 per hectare.\nASI said that it aims to become the first commercial-scale manufacturer of biofertilizer.\nExpansion plans for its Laguna plant will result in sufficient capacity to supply \u201c100% of the country\u2019s biofertilizer requirement for the lands planted to rice and corn.\u201d \u2014 Adrian H. Halili", "date_published": "2024-01-02T20:29:45+08:00", "date_modified": "2024-01-02T20:29:45+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2022/01/Board_of_Investments-BOI-logo.jpg", "tags": [ "Adrian H. Halili", "Economy", "Editors' Picks", "One News" ] }, { "id": "https://www.bworldonline.com/?p=566488", "url": "https://www.bworldonline.com/economy/2024/01/02/566488/biodiesel-manufacturer-sees-higher-coconut-content-improving-mileage/", "title": "Biodiesel manufacturer sees higher coconut content improving mileage", "content_html": "\n
INCREASING the coconut content of the biodiesel blend will have a minimal impact on price but may also improve vehicle mileage, producing net savings, a coco biodiesel producer said.
\n\u201cMore significant will the mileage improvement expected with B3. Because mileage can improve by 5-15% the net savings can be rather significant in peso terms,\u201d Jun Lao, president of Chemrez Technologies, Inc., told BusinessWorld in a Viber message. B3 refers to biofuel with 3% coconut content.
\nOn its website, Chemrez \u2014 a subsidiary of publicly listed D&L Industries, Inc. \u2014 operates the country\u2019s first continuous-process biodiesel plant.
\nIn a draft circular, the Department of Energy is proposing to implement an increase in the coconut methyl ester (CME) blend to 3% (B3) starting July 1, from the current B2.
\nIt also proposed to raise the biodiesel blend to 4%, effective July 1, 2025, and to 5% on July 1, 2026.
\nThe Biofuels Act of 2006 requires that all liquid fuels contain domestically sourced biofuel components.
\n\u201cIf the price of CME is lower than diesel, the blend will make the pump price lower. Depending on the prevailing prices prior to the effectivity of B3, it can also go the other way.\u00a0 Either way the price difference of B2 and B3 will be minimal,\u201d Mr. Lao said.
\nA combustion engine operating at a given efficiency and fuel quality can produce incomplete combustion, he said, with inefficient engines producing black smoke from the exhaust system.
\n\u201cYou can improve combustion by overhauling the engine and using better quality fuel. CME does the latter,\u201d Mr. Lao said.
\n\u201cCME improves the fuel quality, so it burns more completely. There is more power and less black smoke. That means the car engine will perform better by delivering better mileage,\u201d he added.
\nHe said a car performing at 10 kilometers per liter (kms/liter) will soon achieve 11 kms/liter when B3 takes effect, effectively bringing down the cost of fuel by 10%, Mr. Lao said.
\n\u201cSo I expect the cost of transport to drop with B3 implementation. Along with that is the cleaner emission from cars. Then a massive reduction in CO2 (carbon dioxide) from land transport,\u201d he said. \u2014 Sheldeen Joy Talavera
\n", "content_text": "INCREASING the coconut content of the biodiesel blend will have a minimal impact on price but may also improve vehicle mileage, producing net savings, a coco biodiesel producer said.\n\u201cMore significant will the mileage improvement expected with B3. Because mileage can improve by 5-15% the net savings can be rather significant in peso terms,\u201d Jun Lao, president of Chemrez Technologies, Inc., told BusinessWorld in a Viber message. B3 refers to biofuel with 3% coconut content.\nOn its website, Chemrez \u2014 a subsidiary of publicly listed D&L Industries, Inc. \u2014 operates the country\u2019s first continuous-process biodiesel plant.\nIn a draft circular, the Department of Energy is proposing to implement an increase in the coconut methyl ester (CME) blend to 3% (B3) starting July 1, from the current B2.\nIt also proposed to raise the biodiesel blend to 4%, effective July 1, 2025, and to 5% on July 1, 2026.\nThe Biofuels Act of 2006 requires that all liquid fuels contain domestically sourced biofuel components.\n\u201cIf the price of CME is lower than diesel, the blend will make the pump price lower. Depending on the prevailing prices prior to the effectivity of B3, it can also go the other way.\u00a0 Either way the price difference of B2 and B3 will be minimal,\u201d Mr. Lao said.\nA combustion engine operating at a given efficiency and fuel quality can produce incomplete combustion, he said, with inefficient engines producing black smoke from the exhaust system.\n\u201cYou can improve combustion by overhauling the engine and using better quality fuel. CME does the latter,\u201d Mr. Lao said.\n\u201cCME improves the fuel quality, so it burns more completely. There is more power and less black smoke. That means the car engine will perform better by delivering better mileage,\u201d he added.\nHe said a car performing at 10 kilometers per liter (kms/liter) will soon achieve 11 kms/liter when B3 takes effect, effectively bringing down the cost of fuel by 10%, Mr. Lao said.\n\u201cSo I expect the cost of transport to drop with B3 implementation. Along with that is the cleaner emission from cars. Then a massive reduction in CO2 (carbon dioxide) from land transport,\u201d he said. \u2014 Sheldeen Joy Talavera", "date_published": "2024-01-02T20:29:33+08:00", "date_modified": "2024-01-02T20:29:33+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2022/09/coconut.jpg", "tags": [ "Sheldeen Joy Talavera", "Economy", "One News" ] }, { "id": "https://www.bworldonline.com/?p=566487", "url": "https://www.bworldonline.com/economy/2024/01/02/566487/panay-power-plant-outages-raise-yellow-alert-in-visayas/", "title": "Panay power plant outages raise yellow alert in Visayas", "content_html": "THE Visayas power grid was placed on yellow alert on Tuesday after major power plants on Panay Island stopped operating, reducing the safety margin for available power, the National Grid Corp. of the Philippines (NGCP) said.
\nIn a statement, the NGCP said it issued a yellow alert over the Visayas grid for between 4 p.m. and 10 p.m.
\n\u201cRestoration of affected plants is ongoing. While NGCP did not implement manual load dropping, distribution utilities may implement load drops due to voltage-sensitive loads or manual disconnection to secure voltage levels,\u201d the NGCP said.
\nAccording to the grid operator, multiple plants tripped starting with the power plant unit 1 of the Panay Energy Development Corp. (PEDC) as of 12:06 p.m.
\nThis outage was followed by PEDC Unit 2, the tripping of the power plant of Palm Concepcion Power Corp., and \u201cother plants\u201d in Panay Island.
\nAbout 302 megawatts (MW) was lost to the power grid, in addition to 150 MW from the planned maintenance shutdown of PEDC Unit 3.
\n\u201cIn total, 452 MW is unavailable. Currently, none of the power plants in Panay Island is generating power,\u201d the NGCP said.
\nIt has yet to disclose the cause of the power plant outages.
\n\u201cNGCP is focusing its efforts on stabilizing voltage, and has extended feedback power to Iloilo and PEDC,\u201d the grid operator said. \u201cLoad restoration will be done conservatively, by matching loads to restored generation, to prevent repeated voltage failure.\u201d
\nThe Negros-Panay interconnection was restored at 3:24 p.m. after a brief trip at 3:07 p.m.
\nMeanwhile, the Department of Energy (DoE) said in a statement that it is closely coordinating with the NGCP and all affected generation plants and distribution utilities.
\n\u201cWe assure the public that power restoration is a priority,\u201d the DoE said.
\nThe Energy Regulatory Commission is investigating the incident, according to the Energy department. \u2014 Sheldeen Joy Talavera
\n", "content_text": "THE Visayas power grid was placed on yellow alert on Tuesday after major power plants on Panay Island stopped operating, reducing the safety margin for available power, the National Grid Corp. of the Philippines (NGCP) said.\nIn a statement, the NGCP said it issued a yellow alert over the Visayas grid for between 4 p.m. and 10 p.m.\n\u201cRestoration of affected plants is ongoing. While NGCP did not implement manual load dropping, distribution utilities may implement load drops due to voltage-sensitive loads or manual disconnection to secure voltage levels,\u201d the NGCP said.\nAccording to the grid operator, multiple plants tripped starting with the power plant unit 1 of the Panay Energy Development Corp. (PEDC) as of 12:06 p.m.\nThis outage was followed by PEDC Unit 2, the tripping of the power plant of Palm Concepcion Power Corp., and \u201cother plants\u201d in Panay Island.\nAbout 302 megawatts (MW) was lost to the power grid, in addition to 150 MW from the planned maintenance shutdown of PEDC Unit 3.\n\u201cIn total, 452 MW is unavailable. Currently, none of the power plants in Panay Island is generating power,\u201d the NGCP said.\nIt has yet to disclose the cause of the power plant outages.\n\u201cNGCP is focusing its efforts on stabilizing voltage, and has extended feedback power to Iloilo and PEDC,\u201d the grid operator said. \u201cLoad restoration will be done conservatively, by matching loads to restored generation, to prevent repeated voltage failure.\u201d\nThe Negros-Panay interconnection was restored at 3:24 p.m. after a brief trip at 3:07 p.m.\nMeanwhile, the Department of Energy (DoE) said in a statement that it is closely coordinating with the NGCP and all affected generation plants and distribution utilities.\n\u201cWe assure the public that power restoration is a priority,\u201d the DoE said.\nThe Energy Regulatory Commission is investigating the incident, according to the Energy department. \u2014 Sheldeen Joy Talavera", "date_published": "2024-01-02T20:29:16+08:00", "date_modified": "2024-01-02T20:33:09+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2021/09/Electric-pylon-Transmission-lines-bukidnon02-20151112-BWFILE-LSDavalJr.jpg", "tags": [ "Sheldeen Joy Talavera", "Economy" ] }, { "id": "https://www.bworldonline.com/?p=566486", "url": "https://www.bworldonline.com/economy/2024/01/02/566486/beekeepers-to-be-tapped-for-export-markets/", "title": "Beekeepers to be tapped for export markets", "content_html": "\n
THE Department of Agriculture (DA) said it hopes to expand the beekeeping industry, citing the prospect of new export markets.
\nAgriculture Undersecretary Deogracias Victor B. Savellano said the DA will explore funding for the expansion to be overseen by the Bureau of Animal Industry.
\n\u201cBeekeeping is a high-value farm sector. It has export potential given an organized national program to develop it,\u201d Mr. Savellano added.
\nHe said Philippine honeybee breeds are easy to raise, setting the stage for a significant expansion.
\n\u201cThe program offers huge opportunities as income earners for farmers. Honey has medicinal and pharmaceutical properties,\u201d he added.
\nThe DA said it plans to accredit bee suppliers to develop the industry, as a measure to reduce the smuggling of queen bees.
\n\u201cQueen bee smuggling has been destroying our domestic industry,\u201d he said.
\nThe DA added that apiculture products include antibacterial soap, massage oil, lip balm, and shampoo.
\n\u201cPhilippine bee products have reportedly been reaching prominent export markets,\u201d it said.
\nThe DA has also partnered with the University of the Philippines-Los Ba\u00f1os (UPLB) to develop a roadmap for developing export markets and a community-based beekeeping program.
\n\u201cUPLB has been developing technologies using native bees, particularly stingless bees, in order to raise crop yields and sustain biodiversity,\u201d the DA said.
\nThe project has benefited communities of Lanao del Norte and indigenous Mangyan in Victoria, Occidental Mindoro.
\nIt added that bee farms are also being developed as agriculture tourism sites.
\n\u201cOne of the sites is the Balay Buhay sa Uma Bee Farm in Bulusan, Sorsogon. It is accredited by the Department of Tourism,\u201d it said.
\nAdditionally, the program is also set to establish a Food and Drug Administration-accredited bee facility for testing product quality. \u2014 Adrian H. Halili
\n", "content_text": "THE Department of Agriculture (DA) said it hopes to expand the beekeeping industry, citing the prospect of new export markets.\nAgriculture Undersecretary Deogracias Victor B. Savellano said the DA will explore funding for the expansion to be overseen by the Bureau of Animal Industry.\n\u201cBeekeeping is a high-value farm sector. It has export potential given an organized national program to develop it,\u201d Mr. Savellano added.\nHe said Philippine honeybee breeds are easy to raise, setting the stage for a significant expansion.\n\u201cThe program offers huge opportunities as income earners for farmers. Honey has medicinal and pharmaceutical properties,\u201d he added.\nThe DA said it plans to accredit bee suppliers to develop the industry, as a measure to reduce the smuggling of queen bees.\n\u201cQueen bee smuggling has been destroying our domestic industry,\u201d he said.\nThe DA added that apiculture products include antibacterial soap, massage oil, lip balm, and shampoo.\n\u201cPhilippine bee products have reportedly been reaching prominent export markets,\u201d it said.\nThe DA has also partnered with the University of the Philippines-Los Ba\u00f1os (UPLB) to develop a roadmap for developing export markets and a community-based beekeeping program.\n\u201cUPLB has been developing technologies using native bees, particularly stingless bees, in order to raise crop yields and sustain biodiversity,\u201d the DA said.\nThe project has benefited communities of Lanao del Norte and indigenous Mangyan in Victoria, Occidental Mindoro.\nIt added that bee farms are also being developed as agriculture tourism sites.\n\u201cOne of the sites is the Balay Buhay sa Uma Bee Farm in Bulusan, Sorsogon. It is accredited by the Department of Tourism,\u201d it said.\nAdditionally, the program is also set to establish a Food and Drug Administration-accredited bee facility for testing product quality. \u2014 Adrian H. Halili", "date_published": "2024-01-02T20:28:49+08:00", "date_modified": "2024-01-02T20:28:49+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2024/01/backyard-beekeeping.jpg", "tags": [ "Adrian H. Halili", "Economy" ] }, { "id": "https://www.bworldonline.com/?p=566485", "url": "https://www.bworldonline.com/economy/2024/01/02/566485/miners-expect-green-transition-minerals-to-drive-industry-growth/", "title": "Miners expect \u2018green transition\u2019 minerals to drive industry growth", "content_html": "By Adrian H. Halili, Reporter
\nMINERS are expected to perform well in 2024 due to increased demand for transition minerals used by the renewable energy industry, mining officials said.
\n\u201cThe government is pushing for local mineral processing of energy transition metals such as nickel and copper and the Philippine metallic mining industry would like to participate and take advantage of opportunities presented by this development,\u201d Michael T. Toledo, chairman of the Chamber of Mines of the Philippines (CoMP), said in a Viber message.
\nEnvironment Secretary Maria Antonia Yulo-Loyzaga has said that the Department of Environment and Natural Resources (DENR) will encourage exploration for critical minerals this year, with the Mines and Geosciences Bureau (MGB) instructed to gear up for enabling projects undertaken with foreign mining partners.
\nNickel, cobalt, and copper are deemed essential for the production of electric vehicles (EVs), the large-scale batteries which power them, and also wind and solar farms.
\n\u201cA lot still needs to be done but we believe the signposts show we are on a course that is likely to result in success,\u201d Mr. Toledo added.
\nThe Philippine Nickel Industry Association (PNIA) said the industry is pushing for the government to fast-track the approval of mining permits by establishing a \u201cone-stop shop\u201d application process.
\nAccording to the PNIA, the streamlining of approvals will attract more investment in mining.
\nAbout 470 applications are currently awaiting approval. They are proposing to explore for copper, chromite, nickel, and cobalt, according to the MGB.
\nPhase 1 of the MGB\u2019s priority list consists of metallic mines, with about 12 projects expected to start operations in the next six months.
\n\u201cIf realized, this (encourages) upbeat expectations for the production and export of more of these goods, given the high level of global demand,\u201d the MGB said in its metallic production report.
\nThese operations are a magnetite sand (Iron) site in Region 2, nickel laterite in Region 3, gold in Region 5, four nickel, copper and gold sites in Region 11, and five nickel, copper and gold sites in Caraga.
\nCoMP said metals prices would mainly depend on the recovery of China\u2019s economy, a major user of Philippine minerals.
\n\u201cTraders are cautious of the incoming year, considering the weaker Chinese economy and significantly cheaper nickel pig iron (NPI) from Indonesia,\u201d Mr. Toledo said.
\nHe added that the mining industry expects Indonesia to keep up its NPI output.
\nNPI is low-grade ferronickel, which serves as a cheaper alternative to higher-grade nickel used in stainless steel production.
\n\u201cWe don\u2019t know when China\u2019s economy will improve. Most developed countries are challenged at this time,\u201d he said.
\nPNIA has said that nickel production this year will likely remain flat due to the limited capacity in ore-supplying regions.
\nThe MGB said however that due to domestic nickel supply concerns in Indonesia, Chinese demand for nickel ore from the Philippines will rise.
\nIt added that Indonesia has become a new export market for nickel ore. The Philippines has exported about 102,100.72 dry metric tons of nickel ore to Indonesia amounting to P171.37 million during the nine months to September.
\nMr. Toledo said that the industry is optimistic that the Philippines can service global copper demand.
\nHowever, he said that in the absence of new copper mining operations in the next five years, \u201cthere could be a supply deficit that would drive prices upward.\u201d
\n\u201cIn the next few years, we believe the Philippine copper sector can keep up with the demand for this metal as an input for renewable energy technologies,\u201d he said.
\n\u201cAs the global demand for critical minerals for the energy transition intensifies, however, there are concerns on whether copper from Philippine mines can keep up,\u201d he added.
\nRizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the demand for raw materials from the renewable energy industry is expected to grow in the coming years.
\n\u201cThere will still be a large shift towards renewable and towards electric vehicles for the coming years amid the need for more sustainable source of energy and the need to reduce carbon emissions,\u201d Mr. Ricafort said in a Viber message.
\nMr. Ricafort added that a decline in global interest rates could also drive more investment towards minerals.
\n\u201cLower borrowing costs will encourage more investment and business activity, as well as the demand for minerals,\u201d he said.
\nThe Federal Reserve maintained its target rate in the 5.25%-5.5% range for a third straight meeting on Dec. 12-13.
\nThe Bangko Sentral ng Pilipinas kept its key borrowing rate unchanged at 6.5% during its Dec. 15 meeting.
\nRegina Capital Development Corp. Head of Sales Luis A. Limlingan said metal prices will largely be influenced by the strength of the Chinese economy and its adoption of EVs.
\n\u201cThe Philippines will be able to take advantage, should responsible mining practices be put in place to allow further export of our precious minerals,\u201d Mr. Limlingan said in a Viber message.
\nPrices for nickel ore declined to $10.39 per pound from $11.97 per pound the previous year.
\n\u201cFor nickel, attributing factors to growth during the period are the improvement of nickel ore prices and better loading conditions on account of good weather, particularly in the southern part of the country,\u201d Mr. Toledo said.
\nThe price of gold increased to $1,932.07 per troy ounce, while copper prices fell to $3.9 per pound from $4.12 a year earlier. Silver prices rose 7.32% to $23.55 per troy ounce.
\n\u201cThe low copper prices were offset also by good weather, which resulted in less production interruptions, as well as by the strong dollar-to-peso exchange rate,\u201d he added.
\n", "content_text": "By Adrian H. Halili, Reporter\nMINERS are expected to perform well in 2024 due to increased demand for transition minerals used by the renewable energy industry, mining officials said.\n\u201cThe government is pushing for local mineral processing of energy transition metals such as nickel and copper and the Philippine metallic mining industry would like to participate and take advantage of opportunities presented by this development,\u201d Michael T. Toledo, chairman of the Chamber of Mines of the Philippines (CoMP), said in a Viber message.\nEnvironment Secretary Maria Antonia Yulo-Loyzaga has said that the Department of Environment and Natural Resources (DENR) will encourage exploration for critical minerals this year, with the Mines and Geosciences Bureau (MGB) instructed to gear up for enabling projects undertaken with foreign mining partners.\nNickel, cobalt, and copper are deemed essential for the production of electric vehicles (EVs), the large-scale batteries which power them, and also wind and solar farms.\n\u201cA lot still needs to be done but we believe the signposts show we are on a course that is likely to result in success,\u201d Mr. Toledo added.\nThe Philippine Nickel Industry Association (PNIA) said the industry is pushing for the government to fast-track the approval of mining permits by establishing a \u201cone-stop shop\u201d application process.\nAccording to the PNIA, the streamlining of approvals will attract more investment in mining.\nAbout 470 applications are currently awaiting approval. They are proposing to explore for copper, chromite, nickel, and cobalt, according to the MGB.\nPhase 1 of the MGB\u2019s priority list consists of metallic mines, with about 12 projects expected to start operations in the next six months.\n\u201cIf realized, this (encourages) upbeat expectations for the production and export of more of these goods, given the high level of global demand,\u201d the MGB said in its metallic production report.\nThese operations are a magnetite sand (Iron) site in Region 2, nickel laterite in Region 3, gold in Region 5, four nickel, copper and gold sites in Region 11, and five nickel, copper and gold sites in Caraga.\nCoMP said metals prices would mainly depend on the recovery of China\u2019s economy, a major user of Philippine minerals.\n\u201cTraders are cautious of the incoming year, considering the weaker Chinese economy and significantly cheaper nickel pig iron (NPI) from Indonesia,\u201d Mr. Toledo said.\nHe added that the mining industry expects Indonesia to keep up its NPI output.\nNPI is low-grade ferronickel, which serves as a cheaper alternative to higher-grade nickel used in stainless steel production.\n\u201cWe don\u2019t know when China\u2019s economy will improve. Most developed countries are challenged at this time,\u201d he said.\nPNIA has said that nickel production this year will likely remain flat due to the limited capacity in ore-supplying regions.\nThe MGB said however that due to domestic nickel supply concerns in Indonesia, Chinese demand for nickel ore from the Philippines will rise.\nIt added that Indonesia has become a new export market for nickel ore. The Philippines has exported about 102,100.72 dry metric tons of nickel ore to Indonesia amounting to P171.37 million during the nine months to September.\nMr. Toledo said that the industry is optimistic that the Philippines can service global copper demand.\nHowever, he said that in the absence of new copper mining operations in the next five years, \u201cthere could be a supply deficit that would drive prices upward.\u201d\n\u201cIn the next few years, we believe the Philippine copper sector can keep up with the demand for this metal as an input for renewable energy technologies,\u201d he said.\n\u201cAs the global demand for critical minerals for the energy transition intensifies, however, there are concerns on whether copper from Philippine mines can keep up,\u201d he added.\nRizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the demand for raw materials from the renewable energy industry is expected to grow in the coming years.\n\u201cThere will still be a large shift towards renewable and towards electric vehicles for the coming years amid the need for more sustainable source of energy and the need to reduce carbon emissions,\u201d Mr. Ricafort said in a Viber message.\nMr. Ricafort added that a decline in global interest rates could also drive more investment towards minerals.\n\u201cLower borrowing costs will encourage more investment and business activity, as well as the demand for minerals,\u201d he said.\nThe Federal Reserve maintained its target rate in the 5.25%-5.5% range for a third straight meeting on Dec. 12-13.\nThe Bangko Sentral ng Pilipinas kept its key borrowing rate unchanged at 6.5% during its Dec. 15 meeting.\nRegina Capital Development Corp. Head of Sales Luis A. Limlingan said metal prices will largely be influenced by the strength of the Chinese economy and its adoption of EVs.\n\u201cThe Philippines will be able to take advantage, should responsible mining practices be put in place to allow further export of our precious minerals,\u201d Mr. Limlingan said in a Viber message.\nPrices for nickel ore declined to $10.39 per pound from $11.97 per pound the previous year.\n\u201cFor nickel, attributing factors to growth during the period are the improvement of nickel ore prices and better loading conditions on account of good weather, particularly in the southern part of the country,\u201d Mr. Toledo said.\nThe price of gold increased to $1,932.07 per troy ounce, while copper prices fell to $3.9 per pound from $4.12 a year earlier. Silver prices rose 7.32% to $23.55 per troy ounce.\n\u201cThe low copper prices were offset also by good weather, which resulted in less production interruptions, as well as by the strong dollar-to-peso exchange rate,\u201d he added.", "date_published": "2024-01-02T20:28:40+08:00", "date_modified": "2024-01-02T20:28:40+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/01/electric-vehicle.jpg", "tags": [ "YEARENDER", "Economy", "Special Reports" ] }, { "id": "https://www.bworldonline.com/?p=566260", "url": "https://www.bworldonline.com/economy/2024/01/01/566260/peza-broadening-search-for-economic-zone-investments/", "title": "PEZA broadening search for economic zone investments", "content_html": "THE Philippine Economic Zone Authority (PEZA) said it is seeking \u201cnontraditional\u201d countries of origin for economic zone investments.
\n\u201cAng strategy kasi ng PEZA is how we can diversify \u2019yung basket of eggs natin\u00a0(PEZA\u2019s strategy is how we can diversify our basket of eggs). It cannot be reliant on one country alone so we\u2019re reaching out to non-traditional sources,\u201d PEZA Director General Tereso O. Panga told reporters last week.
\nHe added that PEZA will also seek to ride the wave of Middle Eastern countries making clean energy investments.
\n\u201cThat\u2019s why we\u2019re looking into the Middle East (which is) veering away from fossil-based investments, so they want to diversify. And it cannot be just for the Middle East,\u201d Mr. Panga said.
\nThe Philippines had recently allowed full foreign ownership of renewable energy (RE) projects, as authorized by the Department of Energy\u2019s Circular No. 2022-11-0034.
\nThis had triggered an increase in RE investment. Foreign ownership of renewable projects was previously limited to 40%.
\nMr. Panga said that the \u201cChina plus one\u201d approach taken by investors seeking to diversify their manufacturing sites will be the main driver for the growth of PEZA investments in 2024.
\nHe added that PEZA is in continued talks with China-based investors. \u201cThat\u2019s one way we can mitigate the impact and the ones coming here are also industry leaders in their own right.\u201d
\nLast week, PEZA said it is likely to take in P170 billion in investment for 2023, which would exceed its P154.77-billion target. \u2014 Adrian H. Halili
\n", "content_text": "THE Philippine Economic Zone Authority (PEZA) said it is seeking \u201cnontraditional\u201d countries of origin for economic zone investments.\n\u201cAng strategy kasi ng PEZA is how we can diversify \u2019yung basket of eggs natin\u00a0(PEZA\u2019s strategy is how we can diversify our basket of eggs). It cannot be reliant on one country alone so we\u2019re reaching out to non-traditional sources,\u201d PEZA Director General Tereso O. Panga told reporters last week.\nHe added that PEZA will also seek to ride the wave of Middle Eastern countries making clean energy investments.\n\u201cThat\u2019s why we\u2019re looking into the Middle East (which is) veering away from fossil-based investments, so they want to diversify. And it cannot be just for the Middle East,\u201d Mr. Panga said.\nThe Philippines had recently allowed full foreign ownership of renewable energy (RE) projects, as authorized by the Department of Energy\u2019s Circular No. 2022-11-0034.\nThis had triggered an increase in RE investment. Foreign ownership of renewable projects was previously limited to 40%.\nMr. Panga said that the \u201cChina plus one\u201d approach taken by investors seeking to diversify their manufacturing sites will be the main driver for the growth of PEZA investments in 2024.\nHe added that PEZA is in continued talks with China-based investors. \u201cThat\u2019s one way we can mitigate the impact and the ones coming here are also industry leaders in their own right.\u201d\nLast week, PEZA said it is likely to take in P170 billion in investment for 2023, which would exceed its P154.77-billion target. \u2014 Adrian H. Halili", "date_published": "2024-01-01T20:29:41+08:00", "date_modified": "2024-01-01T20:29:10+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2022/09/PEZA-logo-NEW.jpg", "tags": [ "Adrian H. Halili", "Economy", "Editors' Picks", "One News" ] }, { "id": "https://www.bworldonline.com/?p=566259", "url": "https://www.bworldonline.com/economy/2024/01/01/566259/erc-says-rules-for-retail-power-consumer-choice-programs-to-be-out-soon/", "title": "ERC says rules for retail power consumer choice programs to be out soon", "content_html": "THE Energy Regulatory Commission (ERC) and the Department of Energy (DoE) are preparing to release omnibus rules on consumer choice programs in the retail electricity market.
\n\u201cWe have included the green energy option program\u201d in the consumer-choice rules,\u00a0Chiara Angela LB. Blanco, division chief of ERC\u2019s Contestable Market Division, told reporters last week.
\nThe Energy department is hoping to release the circular outlining the rules early this year, she said.
\nMs. Blanco said that the proposed guidelines will cover all the rules under the Retail Competition and Open Access (RCOA), Retail Aggregation Program, and Green Energy Option Program (GEOP), which she said are \u201cconsumer choice programs.\u201d
\n\u201cAll of those \u2014 eligibility, procedures, licensing, magna carta for the rights of the retail customers \u2014\u00a0so that we will have a sole reference for the retail market,\u201d she said.
\nThe timetable for the release of the omnibus rules was meant to align with the implementation of RCOA, Retail Aggregation Program, and GEOP in Mindanao, which was originally targeted for Dec. 26, 2023.
\nQualified contestable customers, or end-users consuming at least 500 kilowatts (kW) a month, may choose their own power suppliers through the RCOA scheme, as stipulated in the Electric Power Industry Reform Act of 2001.
\nUnder the aggregation program, two or more electricity end-users or all end-users within a contiguous area can be treated as a single contestable customer.
\nMeanwhile, GEOP allows users consuming at least 100 kW of power to source power from accredited retail energy suppliers which generate electricity from renewables.
\nThe DoE seeks to establish a Wholesale Electricity Spot Market in Mindanao which will help facilitate the implementation of policy mechanisms that promote competition and consumer empowerment, which are currently available only in Luzon and the Visayas grid.
\nMs. Blanco said input from focus group discussions has been taken into consideration in drafting the rules. \u2014 Sheldeen Joy Talavera
\n", "content_text": "THE Energy Regulatory Commission (ERC) and the Department of Energy (DoE) are preparing to release omnibus rules on consumer choice programs in the retail electricity market.\n\u201cWe have included the green energy option program\u201d in the consumer-choice rules,\u00a0Chiara Angela LB. Blanco, division chief of ERC\u2019s Contestable Market Division, told reporters last week.\nThe Energy department is hoping to release the circular outlining the rules early this year, she said.\nMs. Blanco said that the proposed guidelines will cover all the rules under the Retail Competition and Open Access (RCOA), Retail Aggregation Program, and Green Energy Option Program (GEOP), which she said are \u201cconsumer choice programs.\u201d\n\u201cAll of those \u2014 eligibility, procedures, licensing, magna carta for the rights of the retail customers \u2014\u00a0so that we will have a sole reference for the retail market,\u201d she said.\nThe timetable for the release of the omnibus rules was meant to align with the implementation of RCOA, Retail Aggregation Program, and GEOP in Mindanao, which was originally targeted for Dec. 26, 2023.\nQualified contestable customers, or end-users consuming at least 500 kilowatts (kW) a month, may choose their own power suppliers through the RCOA scheme, as stipulated in the Electric Power Industry Reform Act of 2001.\nUnder the aggregation program, two or more electricity end-users or all end-users within a contiguous area can be treated as a single contestable customer.\nMeanwhile, GEOP allows users consuming at least 100 kW of power to source power from accredited retail energy suppliers which generate electricity from renewables.\nThe DoE seeks to establish a Wholesale Electricity Spot Market in Mindanao which will help facilitate the implementation of policy mechanisms that promote competition and consumer empowerment, which are currently available only in Luzon and the Visayas grid.\nMs. Blanco said input from focus group discussions has been taken into consideration in drafting the rules. \u2014 Sheldeen Joy Talavera", "date_published": "2024-01-01T20:28:21+08:00", "date_modified": "2024-01-01T20:29:07+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2022/10/electric-meter.jpg", "tags": [ "Sheldeen Joy Talavera", "Economy", "Editors' Picks", "One News" ] }, { "id": "https://www.bworldonline.com/?p=566226", "url": "https://www.bworldonline.com/economy/2024/01/01/566226/end-september-net-external-liability-position-widens/", "title": "End-September net external liability position widens", "content_html": "THE Philippines\u2019 net external liability position widened at the end of September due to a decline in the central bank\u2019s reserve assets, the Bangko Sentral ng Pilipinas (BSP) said late Friday.\u00a0\u00a0\u00a0\u00a0
\nPreliminary data released by the BSP indicated that the international investment position (IIP) was a net external liability of $50 billion at the end of September, as against a net liability of $49.6 billion at the end of June.\u00a0
\nYear on year, the IIP was 62.1% wider against the net external liability of $30 billion a year earlier.
\n\u201cThis development was driven mainly by the 1% contraction in external financial assets, offsetting the 0.7% decline in external financial liabilities,\u201d the BSP said in a statement.
\nThe IIP is an indicator of the value and composition of a country\u2019s financial assets and liabilities. It gauges an economy\u2019s external exposure in financial assets and liabilities.
\nThe central bank reported that external financial assets fell 1% to $227.9 billion at the end of September against $230.3 billion at the end of the previous quarter.
\nThe BSP attributed the decline in financial assets to the combined decreases in reserve assets ($98.1 billion as of September from $99.4 billion as of June), portfolio investments ($32.5 billion from $33.5 billion), and other investments ($26.9 billion from $27.5 billion). \u00a0
\n\u201cThe lower level of reserves was attributed to the National Government\u2019s payments of its foreign currency debt obligations, coupled with the downward adjustments in the valuation of the BSP\u2019s foreign currency-denominated reserves (or non-gold reserves) and gold holdings,\u201d the BSP said.\u00a0
\n\u201cIn addition, the residents\u2019 net withdrawal of their investments in foreign debt securities, and net repayment of loans by nonresidents to the local banks also contributed to the lower total outstanding level of external financial assets during the review period,\u201d it added.
\nSome 43% of the external financial assets are reserve assets held by the BSP. Other sectors held $92.6 billion (40.6%) during the same period, while banks kept $32.9 billion (14.4%).
\nMeanwhile, external financial liabilities fell 0.7% to $277.9 billion at the end of September compared with the end of June.
\nResidents\u2019 outstanding foreign portfolio investments stood at $80.7 billion at the end of September, 5.2% lower from the previous quarter.
\n\u201cThis development emanated mainly from the decline in nonresidents\u2019 net investments in equity securities (by 6.2%) and debt securities (by 4.5%) amid global slowdown and high interest rate environment, which weighed down on investment activity, coupled with downward valuation adjustments during the period,\u201d the BSP said.
\n\u201cThis decline, however, was muted partly by the 3.8% growth in residents\u2019 outstanding foreign loans to $67.2 billion from $64.7 billion,\u201d the central bank added.
\nThe BSP has hiked benchmark interest rates by 450 basis points from May 2022 to October 2023 to fight inflation. This has brought the key policy rate to 6.5%, the highest in 16 years.
\nOther sectors accounted for 60.9% or $169.3 billion of the country\u2019s total external financial liabilities at the end of September. The rest were held by the National Government and banks, with financial liabilities worth $70.4 billion (25.3%) and $34.5 billion (12.4%), respectively.
\nThe BSP held 1.4% of all external financial liabilities at $3.8 billion, which were mostly in the form of Special Drawing Rights. \u2014 Keisha B. Ta-asan
\n", "content_text": "THE Philippines\u2019 net external liability position widened at the end of September due to a decline in the central bank\u2019s reserve assets, the Bangko Sentral ng Pilipinas (BSP) said late Friday.\u00a0\u00a0\u00a0\u00a0\nPreliminary data released by the BSP indicated that the international investment position (IIP) was a net external liability of $50 billion at the end of September, as against a net liability of $49.6 billion at the end of June.\u00a0\nYear on year, the IIP was 62.1% wider against the net external liability of $30 billion a year earlier.\n\u201cThis development was driven mainly by the 1% contraction in external financial assets, offsetting the 0.7% decline in external financial liabilities,\u201d the BSP said in a statement.\nThe IIP is an indicator of the value and composition of a country\u2019s financial assets and liabilities. It gauges an economy\u2019s external exposure in financial assets and liabilities.\nThe central bank reported that external financial assets fell 1% to $227.9 billion at the end of September against $230.3 billion at the end of the previous quarter.\nThe BSP attributed the decline in financial assets to the combined decreases in reserve assets ($98.1 billion as of September from $99.4 billion as of June), portfolio investments ($32.5 billion from $33.5 billion), and other investments ($26.9 billion from $27.5 billion). \u00a0\n\u201cThe lower level of reserves was attributed to the National Government\u2019s payments of its foreign currency debt obligations, coupled with the downward adjustments in the valuation of the BSP\u2019s foreign currency-denominated reserves (or non-gold reserves) and gold holdings,\u201d the BSP said.\u00a0\n\u201cIn addition, the residents\u2019 net withdrawal of their investments in foreign debt securities, and net repayment of loans by nonresidents to the local banks also contributed to the lower total outstanding level of external financial assets during the review period,\u201d it added.\nSome 43% of the external financial assets are reserve assets held by the BSP. Other sectors held $92.6 billion (40.6%) during the same period, while banks kept $32.9 billion (14.4%).\nMeanwhile, external financial liabilities fell 0.7% to $277.9 billion at the end of September compared with the end of June.\nResidents\u2019 outstanding foreign portfolio investments stood at $80.7 billion at the end of September, 5.2% lower from the previous quarter.\n\u201cThis development emanated mainly from the decline in nonresidents\u2019 net investments in equity securities (by 6.2%) and debt securities (by 4.5%) amid global slowdown and high interest rate environment, which weighed down on investment activity, coupled with downward valuation adjustments during the period,\u201d the BSP said.\n\u201cThis decline, however, was muted partly by the 3.8% growth in residents\u2019 outstanding foreign loans to $67.2 billion from $64.7 billion,\u201d the central bank added.\nThe BSP has hiked benchmark interest rates by 450 basis points from May 2022 to October 2023 to fight inflation. This has brought the key policy rate to 6.5%, the highest in 16 years.\nOther sectors accounted for 60.9% or $169.3 billion of the country\u2019s total external financial liabilities at the end of September. The rest were held by the National Government and banks, with financial liabilities worth $70.4 billion (25.3%) and $34.5 billion (12.4%), respectively.\nThe BSP held 1.4% of all external financial liabilities at $3.8 billion, which were mostly in the form of Special Drawing Rights. \u2014 Keisha B. Ta-asan", "date_published": "2024-01-01T20:27:55+08:00", "date_modified": "2024-01-01T20:29:04+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/05/BSP-main-office.jpg", "tags": [ "Keisha B. Ta-asan", "Economy", "Editors' Picks", "One News" ] }, { "id": "https://www.bworldonline.com/?p=566258", "url": "https://www.bworldonline.com/economy/2024/01/01/566258/insurance-program-launched-to-cover-strategic-govt-assets/", "title": "Insurance program launched to cover \u2018strategic\u2019 gov\u2019t assets", "content_html": "\n
THE Bureau of the Treasury (BTr) has launched the National Insurance Indemnity Program (NIIP) to provide cover for \u201cstrategically important\u201d government assets, starting with school buildings, the Department of Finance said.
\n\u201cI commend the BTr for successfully implementing the NIIP. Safeguarding our national assets is crucial to ensure the safety and readiness of the projects delivered by this administration for the Filipino people. This is just one of the many immediate actions we are taking to bolster our country\u2019s financial resilience. We are starting the year strong and well-prepared as we expect the realization of many more high-impact infrastructure projects under the leadership of President Ferdinand R. Marcos, Jr.,\u201d Finance Secretary Benjamin E. Diokno said in a statement on Monday.
\nThe NIIP aims to assist the government in financing the recovery from unexpected losses due to disasters such as typhoons and earthquakes.
\nIt also aims to ensure access to funding post-disaster for reconstruction.
\nThe insurance was arranged by the Government Service Insurance System (GSIS), which took a portfolio approach to mitigate risk and maximize the available funding for premiums.
\n\u201cI am excited to see this program finally come to fruition. This is just one of the many programs the BTr implements to enhance our resilience against disasters. Our vulnerability to natural disasters makes it imperative for us to act now and implement solutions that would help us become more resilient and recover faster,\u201d Monetary Board Member and former National Treasurer Rosalia V. de Leon said.
\nMs. De Leon also led the development of the NIIP during her term as Treasurer.
\n\u201cWe are glad to start the year strong with one of our flagship programs \u2014 the NIIP, finally in place. The program will provide financial protection for our schools in the event of disasters. We are also grateful to the GSIS who continues to be our partner in finding appropriate solutions to protect government assets against unforeseen losses,\u201d BTr Officer-in-Charge Sharon P. Almanza said.
\nThe 2024 pilot program of the NIIP covers 132,862 Department of Education\u00a0school buildings nationwide.
\nThe GSIS previously set aside P843.11 billion to provide fire, lightning, and natural catastrophe insurance\u00a0cover for public school buildings for one year starting Jan. 1, 2024. \u2014 Aaron Michael C. Sy
\n", "content_text": "THE Bureau of the Treasury (BTr) has launched the National Insurance Indemnity Program (NIIP) to provide cover for \u201cstrategically important\u201d government assets, starting with school buildings, the Department of Finance said.\n\u201cI commend the BTr for successfully implementing the NIIP. Safeguarding our national assets is crucial to ensure the safety and readiness of the projects delivered by this administration for the Filipino people. This is just one of the many immediate actions we are taking to bolster our country\u2019s financial resilience. We are starting the year strong and well-prepared as we expect the realization of many more high-impact infrastructure projects under the leadership of President Ferdinand R. Marcos, Jr.,\u201d Finance Secretary Benjamin E. Diokno said in a statement on Monday.\nThe NIIP aims to assist the government in financing the recovery from unexpected losses due to disasters such as typhoons and earthquakes.\nIt also aims to ensure access to funding post-disaster for reconstruction.\nThe insurance was arranged by the Government Service Insurance System (GSIS), which took a portfolio approach to mitigate risk and maximize the available funding for premiums.\n\u201cI am excited to see this program finally come to fruition. This is just one of the many programs the BTr implements to enhance our resilience against disasters. Our vulnerability to natural disasters makes it imperative for us to act now and implement solutions that would help us become more resilient and recover faster,\u201d Monetary Board Member and former National Treasurer Rosalia V. de Leon said.\nMs. De Leon also led the development of the NIIP during her term as Treasurer.\n\u201cWe are glad to start the year strong with one of our flagship programs \u2014 the NIIP, finally in place. The program will provide financial protection for our schools in the event of disasters. We are also grateful to the GSIS who continues to be our partner in finding appropriate solutions to protect government assets against unforeseen losses,\u201d BTr Officer-in-Charge Sharon P. Almanza said.\nThe 2024 pilot program of the NIIP covers 132,862 Department of Education\u00a0school buildings nationwide.\nThe GSIS previously set aside P843.11 billion to provide fire, lightning, and natural catastrophe insurance\u00a0cover for public school buildings for one year starting Jan. 1, 2024. \u2014 Aaron Michael C. Sy", "date_published": "2024-01-01T20:26:16+08:00", "date_modified": "2024-01-01T20:26:16+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2022/09/Dugong-Elementary-School-in-Bucay-Abra.jpg", "tags": [ "Aaron Michael C. Sy", "Economy", "One News" ] }, { "id": "https://www.bworldonline.com/?p=566257", "url": "https://www.bworldonline.com/economy/2024/01/01/566257/mid-december-well-milled-rice-prices-average-p54-68-a-kilo/", "title": "Mid-December well-milled rice prices average P54.68 a kilo", "content_html": "\n
THE national average retail price of well-milled rice in late December was P54.68 per kilogram (kg), according to the Philippine Statistics Authority (PSA).
\nRice prices rose 0.97% during the Dec. 15 to 17 period, which the PSA calls the second phase of December, compared with prices between Dec. 1 and 5, or the first phase.
\nThe PSA reported that Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon) posted the highest average retail price, with well milled rice selling for P58 per kg.
\nAt the low end during the period was Ilocos Region with rice prices at P50.37 per kg.
\nIt said regular-milled rice averaged P49.38 per kg, or 1.13% higher compared to the first phase.
\nCaraga region posted the highest average price at P50.64 per kg, while Western Visayas was lowest at P44.08 per kg.
\nThe PSA reported that the national average retail price for refined sugar was P90.19 per kg.
\nFor the second phase of December, prices in Eastern Visayas were the highest, with sugar hitting P102.92 per kg.
\nPrices in the Bangsamoro Autonomous Region in Muslim Mindanao were the lowest at P82.05 per kg.
\nBrown sugar averaged P79.52 per kg for the period.
\nThe PSA reported that Calabarzon had the highest retail price for brown sugar at P88.86 per kg, while Zamboanga Peninsula posted the lowest at P71.87 per kg.
\nPork kasim (shoulder) averaged P322.72 per kg.
\nThe highest retail price was reported in Northern Mindanao at P367.22 per kg, while Central Visayas posted the lowest at P284.5 per kg.
\nPork liempo (belly), on the other hand, averaged P340.65 per kg during the second phase.
\nDavao Region had the highest price at P373.9 per kg, while Cagayan Valley posted the lowest at P292 per kg. \u2014 Adrian H. Halili
\n", "content_text": "THE national average retail price of well-milled rice in late December was P54.68 per kilogram (kg), according to the Philippine Statistics Authority (PSA).\nRice prices rose 0.97% during the Dec. 15 to 17 period, which the PSA calls the second phase of December, compared with prices between Dec. 1 and 5, or the first phase.\nThe PSA reported that Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon) posted the highest average retail price, with well milled rice selling for P58 per kg.\nAt the low end during the period was Ilocos Region with rice prices at P50.37 per kg.\nIt said regular-milled rice averaged P49.38 per kg, or 1.13% higher compared to the first phase.\nCaraga region posted the highest average price at P50.64 per kg, while Western Visayas was lowest at P44.08 per kg.\nThe PSA reported that the national average retail price for refined sugar was P90.19 per kg.\nFor the second phase of December, prices in Eastern Visayas were the highest, with sugar hitting P102.92 per kg.\nPrices in the Bangsamoro Autonomous Region in Muslim Mindanao were the lowest at P82.05 per kg.\nBrown sugar averaged P79.52 per kg for the period.\nThe PSA reported that Calabarzon had the highest retail price for brown sugar at P88.86 per kg, while Zamboanga Peninsula posted the lowest at P71.87 per kg.\nPork kasim (shoulder) averaged P322.72 per kg.\nThe highest retail price was reported in Northern Mindanao at P367.22 per kg, while Central Visayas posted the lowest at P284.5 per kg.\nPork liempo (belly), on the other hand, averaged P340.65 per kg during the second phase.\nDavao Region had the highest price at P373.9 per kg, while Cagayan Valley posted the lowest at P292 per kg. \u2014 Adrian H. Halili", "date_published": "2024-01-01T20:25:20+08:00", "date_modified": "2024-01-01T20:25:20+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/rice-workers.jpg", "tags": [ "Adrian H. Halili", "Economy", "One News" ] }, { "id": "https://www.bworldonline.com/?p=566256", "url": "https://www.bworldonline.com/economy/2024/01/01/566256/national-govt-gross-borrowing-up-28-2-in-nov-as-domestic-debt-surges/", "title": "National Gov\u2019t gross borrowing up 28.2% in Nov. as domestic debt surges", "content_html": "\n
THE National Government\u2019s gross borrowing rose 28.2% year on year in November, as domestic debt continued to grow in the double digits.
\nThe Bureau of the Treasury reported that gross borrowing rose to P125.462 billion in November from P97.865 billion a year earlier.
\nGross domestic debt surged 59.4% to P121.020 billion in November. This accounted for 96.46% of total borrowing during the month.
\nDomestic debt consisted of P100 billion in fixed-rate Treasury bonds, P6.02 billion in Treasury bills, and P15 billion in tokenized bonds.
\nThe Philippines issued P15 billion or $270 million in a maiden offering of tokenized bonds earlier in November.
\nMeanwhile, external debt dropped 80% to P4.44 billion, consisting of new project loans. There were no program loans and global bonds recorded for the month.
\nFor the 11-month period, gross borrowing declined 0.14% to P2.101 trillion.
\nDomestic borrowings rose 1.9% to P1.64 trillion during the 11 months. This accounted for 78.1% of total borrowing for the period.\u00a0
\nFixed-rate Treasury bonds accounted for P1.155 trillion of domestic debt, followed by retail Treasury bonds (P252.091 billion), Treasury bills (P145.717 billion), retail onshore dollar bonds (P71.78 billion), and tokenized bonds.
\nMeanwhile, external debt as of November fell 6.6% to P460.756 billion.
\nThis consisted of P187.573 billion in program loans, P163.607 billion in global bonds, and P109.573 billion in new project loans.
\nRizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said higher borrowing in November was due to elevated inflation, which increased government expenditure.
\nHeadline inflation grew to 4.1% in November, falling from 4.9% in October and 8% in November 2022. This was the weakest inflation reading in 20 months, but it was still above the 2-4% target band for a 20th consecutive month.\u00a0
\nMr. Ricafort said that elevated interest rates also drove borrowing costs higher.
\nThe Bangko Sentral ng Pilipinas (BSP) kept interest rates steady in November, after it delivered a 25-basis-point (bp) off-cycle rate hike in October. The benchmark interest rate stood at a 16-year high of 6.5%.
\nSince May 2022, the central bank has raised borrowing costs by a cumulative 450 bps.
\nMr. Ricafort said easing inflation amid declining global crude oil prices would support possible local policy rate cuts this year, which could reduce debt servicing and temper additional government borrowings.
\nA BusinessWorld poll of 13 analysts last week yielded a median estimate of 4% for December inflation. This is also within the 3.6% to 4.4% forecast given by the BSP last week.
\nIf realized, December would finally hit the BSP\u2019s 2-4% target range after 20 straight months of above-target inflation readings. It would also mark the slowest pace since the 3% in February 2022.
\nThe Philippine Statistics Authority will release inflation data for December on Friday, Jan. 5.
\nThis year, the National Government plans to borrow P2.207 trillion, consisting of P1.654 trillion from domestic sources and P553.5 billion from foreign creditors. \u2014 Keisha B. Ta-asan
\n", "content_text": "THE National Government\u2019s gross borrowing rose 28.2% year on year in November, as domestic debt continued to grow in the double digits.\nThe Bureau of the Treasury reported that gross borrowing rose to P125.462 billion in November from P97.865 billion a year earlier.\nGross domestic debt surged 59.4% to P121.020 billion in November. This accounted for 96.46% of total borrowing during the month.\nDomestic debt consisted of P100 billion in fixed-rate Treasury bonds, P6.02 billion in Treasury bills, and P15 billion in tokenized bonds.\nThe Philippines issued P15 billion or $270 million in a maiden offering of tokenized bonds earlier in November.\nMeanwhile, external debt dropped 80% to P4.44 billion, consisting of new project loans. There were no program loans and global bonds recorded for the month.\nFor the 11-month period, gross borrowing declined 0.14% to P2.101 trillion.\nDomestic borrowings rose 1.9% to P1.64 trillion during the 11 months. This accounted for 78.1% of total borrowing for the period.\u00a0\nFixed-rate Treasury bonds accounted for P1.155 trillion of domestic debt, followed by retail Treasury bonds (P252.091 billion), Treasury bills (P145.717 billion), retail onshore dollar bonds (P71.78 billion), and tokenized bonds.\nMeanwhile, external debt as of November fell 6.6% to P460.756 billion.\nThis consisted of P187.573 billion in program loans, P163.607 billion in global bonds, and P109.573 billion in new project loans.\nRizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said higher borrowing in November was due to elevated inflation, which increased government expenditure.\nHeadline inflation grew to 4.1% in November, falling from 4.9% in October and 8% in November 2022. This was the weakest inflation reading in 20 months, but it was still above the 2-4% target band for a 20th consecutive month.\u00a0\nMr. Ricafort said that elevated interest rates also drove borrowing costs higher.\nThe Bangko Sentral ng Pilipinas (BSP) kept interest rates steady in November, after it delivered a 25-basis-point (bp) off-cycle rate hike in October. The benchmark interest rate stood at a 16-year high of 6.5%.\nSince May 2022, the central bank has raised borrowing costs by a cumulative 450 bps.\nMr. Ricafort said easing inflation amid declining global crude oil prices would support possible local policy rate cuts this year, which could reduce debt servicing and temper additional government borrowings.\nA BusinessWorld poll of 13 analysts last week yielded a median estimate of 4% for December inflation. This is also within the 3.6% to 4.4% forecast given by the BSP last week.\nIf realized, December would finally hit the BSP\u2019s 2-4% target range after 20 straight months of above-target inflation readings. It would also mark the slowest pace since the 3% in February 2022.\nThe Philippine Statistics Authority will release inflation data for December on Friday, Jan. 5.\nThis year, the National Government plans to borrow P2.207 trillion, consisting of P1.654 trillion from domestic sources and P553.5 billion from foreign creditors. \u2014 Keisha B. Ta-asan", "date_published": "2024-01-01T20:24:58+08:00", "date_modified": "2024-01-01T20:24:58+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2021/09/Btr-Treasury.jpg", "tags": [ "Keisha B. Ta-asan", "Economy" ] }, { "id": "https://www.bworldonline.com/?p=566255", "url": "https://www.bworldonline.com/economy/2024/01/01/566255/transfer-pricing-considerations-for-intercompany-loans/", "title": "Transfer pricing considerations for intercompany loans", "content_html": "As each delicate strand of Christmas light is taken down from the walls, each Christmas ornament is undecked from the halls, and each Christmas tree is carefully dismantled and boxed up, we officially bid a fond farewell to the 2023 holiday season. And as the final pages of the 2023 calendar turn, we find ourselves at a crossroads, reflecting on our experiences during the past year and eagerly anticipating the upcoming journey that awaits us in 2024.
\nLike the way families gather to celebrate and strengthen their bonds during the holidays, the advent of a new taxable year also brings the need for entities under the same corporate umbrella to collaborate and plan their business operations, organizational goals, and financing strategies ahead of the upcoming year. Perhaps an ever-present concern during such planning is the financial transaction requirements within a corporate group, including the appropriate interest rate and terms and conditions to be implemented to ensure that intercompany loans are negotiated at arm\u2019s length.
\nWorry not. The Bureau of Internal Revenue (BIR) issued Revenue Audit Memorandum Order (RAMO) No. 1-2019 which includes a chapter prescribing guidelines on testing the arm\u2019s length nature of interest payment transactions.
\nFurther, the Organization for Economic Cooperation and Development (OECD) issued its final transfer pricing guidelines on financial transactions in February 2020. This marks the first time the OECD has laid out specific transfer pricing guidelines relating to intercompany financial transactions.
\nIn this edition of Let\u2019s Talk TP, we discuss the key factors to consider in determining whether intercompany financial transactions are carried on at arm\u2019s length.
\nDELINEATION OF FINANCIAL TRANSACTIONS
\nOur previous article \u201cThe real deal: Delineating transactions in transfer pricing,\u201d discussed the concept of \u201csubstance over form\u201d and how the economic and factual substance of transactions matter over their legal form in determining the arm\u2019s length price for controlled transactions between associated enterprises. This concept holds true when it comes to intercompany loans.
The RAMO and OECD guidelines highlighted that evaluating whether a financial transaction is carried out at arm\u2019s length does not only entail determining if the interest rate implemented is at arm\u2019s length. It also involves determining whether a prima facie loan can indeed be regarded as a debt transaction or if it can be construed as a contribution to equity. This will ultimately have tax consequences to the parties involved since the corresponding interest income or interest expense recognized may be partially or fully disallowed for taxation purposes if it can be determined that the debt transaction is, in essence, a capital contribution.
\nIn one instance cited by the RAMO regarding the re-characterization of a financial transaction, an investment in a related party in the form of interest-bearing debt is not expected to be structured in the same way had it been conducted at arm\u2019s length given the economic circumstances of the lending company. In this case, it is appropriate for the transaction to be characterized according to its economic substance, and the loan may be treated as a capital subscription.
\nNow, it is critical to know the following economically relevant characteristics which are useful indicators in accurately delineating intercompany advancement of funds according to OECD: (a) presence or absence of a fixed repayment date; (b) obligation to pay interest; (c) right to enforce payment of principal and interest; (d) status of the funder in comparison to regular corporate creditors; (e) existence of financial covenants and security; (f) source of interest payments; (g) ability of the recipient of the funds to obtain loans from unrelated lending institutions; (h) the purpose of the loan and business strategy; and (i) the purported debtor\u2019s ability to repay on the due date or to seek a postponement.
\nThe RAMO also defined the steps to be undertaken by the taxing authority in testing the nature of loan transactions which are performing analysis of the need for the debt, confirming that the loan actually occurred, testing the arm\u2019s length nature of the debt-to-equity ratio, testing interest rate of loans with affiliated parties, determination of arm\u2019s length price; and applying the corresponding adjustments.
\nINTEREST RATE BENCHMARKING ANALYSIS
\nThe determination of the arm\u2019s length interest rate ultimately requires the identification of comparable transactions. In our previous articles, we discussed how the Comparable Uncontrolled Price method (CUP method) compares the price and conditions of products or services in a controlled transaction (i.e., between related parties) with those of an uncontrolled transaction (i.e., between unrelated parties). The OECD noted that the CUP method may be easier to apply to loan transactions than any other type of transactions due to the widespread existence of markets for borrowing and lending between independent borrowers and lenders. The arm\u2019s length interest rate for a tested loan can be benchmarked against publicly available data for other borrowers with the same credit rating for loans with sufficiently similar terms and conditions and other comparability factors.
According to the RAMO, testing the interest rate of intercompany loans involves the comparison of such rates with those commonly used by independent parties, which are usually calculated from a particular interest rate (i.e., BSP, LIBOR, SIBOR, USOR, or JISOR) plus a certain amount based on the credit rating of the borrower.
\nBased on the foregoing, the question now arises: Is it acceptable to merely use the interest rates published by Bangko Sentral ng Pilipinas (BSP) and other independent financial institutions as valid benchmark for interest rate of intercompany loans?
\nNote that the OECD emphasized several factors to consider in determining the appropriate comparable interest rates such as the similarity of the terms and conditions of the transaction, the credit rating of the borrower and other economic factors.
\nIn fact, the OECD acknowledges that comparability adjustments may be required due to the varying features of debt instruments. Characteristics that usually increase the risk for the lender, such as long maturity dates, absence of security, subordination, or application of the loan to a risky project, will tend to increase the interest rate. Characteristics that limit the lender\u2019s risk, such as strong collateral, a high-quality guarantee, or restrictions on future behavior of the borrower, will tend to result in a lower interest rate.
\nGoing back to the question, interest rates published by BSP, and other independent financial institutions can be used as benchmark but are subject to comparability adjustments as discussed by the OECD.
\nIn case that there are no comparable uncontrolled transactions which could reasonably be used as benchmark, the OECD suggests that the cost of funds approach may serve an alternative to price intra-group loans. This approach considers the following borrowing costs borne by the lender when raising funds to be lent: (a) expenses incurred in arranging and servicing the loan; (b) a risk premium to account for the various economic factors inherent in the proposed loan; and (c) a profit margin, which will generally include the lender\u2019s incremental cost of the equity required to support the loan.
\nKeep in mind, however, that the cost of funds approach should be applied by considering the lender\u2019s cost of funds relative to other lenders operating in the market. Lenders cannot simply charge based on their cost of funds. It requires consideration of the options realistically available to the borrower as well. A borrowing entity would not execute a loan priced under the cost of funds approach if it could obtain the funding under better conditions by entering an alternative transaction.
\nThe OECD also clarified that opinions issued by independent banks stating the interest rate the bank would apply were it to make a comparable loan to that particular entity are not sufficient evidence of an arm\u2019s length transaction. Such practice deviates from the arm\u2019s length approach to comparability since it is not based on the comparison of actual transactions.
\nDEBT CAPACITY ANALYSIS
\nIn addition to delineating the transaction and determining the arm\u2019s length interest rate, it\u2019s also important to demonstrate that the borrower would have been able to raise a similar quantity of debt from independent lenders.
The creditworthiness of the borrower is one of the main factors independent moneylenders take into consideration when entering into a loan agreement. Even on a personal level, you wouldn\u2019t extend a loan to a person you know is not financially capable of paying you back or has a history of failing to meet payment obligations, wouldn\u2019t you? Thus, it is imperative to assess the credit quality of the borrower in a controlled transaction.
\nAn independent lender will usually carry out a thorough credit assessment of the potential borrower to enable the lender to identify and evaluate the risks involved and to consider methods of monitoring and managing these risks. Such credit assessment includes understanding the structure and purpose of the loan, determining the source of repayments, and analyzing the borrower\u2019s cash flow forecasts and the strength of its balance sheet.
\nRemember, the ultimate objective of the arm\u2019s length principle is to ensure that a transaction is carried out as if it were entered into by independent parties. Hence, the related party lender is expected to perform a thorough credit assessment of the related party borrower, as if it were an independent financial institution.
\nTAKEAWAY
\nHoliday seasons may come and go, but as businesses continue to expand beyond global borders, the intricate webs of intra-group financial transactions are here to stay. And as we usher in a new taxable year, taxpayers must approach transfer pricing considerations on intercompany loans with a proactive mindset.
The RAMO and OECD provide detailed transfer pricing guidelines to ensure that financial transactions are carried out at arm\u2019s length. It is prudent that taxpayers prepare transfer pricing documentation containing the necessary information to establish that the terms and conditions of their intercompany loans are at arm\u2019s length. Although not yet prevalent in Philippine tax audits, transfer pricing issues relating to financial transactions are looming on the horizon and are something to watch out for in the future.
\nLet\u2019s Talk TP is an offshoot of Let\u2019s Talk Tax, a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.
\n\n
Patrick Manuel R. Olarte is a manager from the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.
\n\n", "content_text": "As each delicate strand of Christmas light is taken down from the walls, each Christmas ornament is undecked from the halls, and each Christmas tree is carefully dismantled and boxed up, we officially bid a fond farewell to the 2023 holiday season. And as the final pages of the 2023 calendar turn, we find ourselves at a crossroads, reflecting on our experiences during the past year and eagerly anticipating the upcoming journey that awaits us in 2024.\nLike the way families gather to celebrate and strengthen their bonds during the holidays, the advent of a new taxable year also brings the need for entities under the same corporate umbrella to collaborate and plan their business operations, organizational goals, and financing strategies ahead of the upcoming year. Perhaps an ever-present concern during such planning is the financial transaction requirements within a corporate group, including the appropriate interest rate and terms and conditions to be implemented to ensure that intercompany loans are negotiated at arm\u2019s length. \nWorry not. The Bureau of Internal Revenue (BIR) issued Revenue Audit Memorandum Order (RAMO) No. 1-2019 which includes a chapter prescribing guidelines on testing the arm\u2019s length nature of interest payment transactions.\nFurther, the Organization for Economic Cooperation and Development (OECD) issued its final transfer pricing guidelines on financial transactions in February 2020. This marks the first time the OECD has laid out specific transfer pricing guidelines relating to intercompany financial transactions.\nIn this edition of Let\u2019s Talk TP, we discuss the key factors to consider in determining whether intercompany financial transactions are carried on at arm\u2019s length.\nDELINEATION OF FINANCIAL TRANSACTIONS\nOur previous article \u201cThe real deal: Delineating transactions in transfer pricing,\u201d discussed the concept of \u201csubstance over form\u201d and how the economic and factual substance of transactions matter over their legal form in determining the arm\u2019s length price for controlled transactions between associated enterprises. This concept holds true when it comes to intercompany loans.\nThe RAMO and OECD guidelines highlighted that evaluating whether a financial transaction is carried out at arm\u2019s length does not only entail determining if the interest rate implemented is at arm\u2019s length. It also involves determining whether a prima facie loan can indeed be regarded as a debt transaction or if it can be construed as a contribution to equity. This will ultimately have tax consequences to the parties involved since the corresponding interest income or interest expense recognized may be partially or fully disallowed for taxation purposes if it can be determined that the debt transaction is, in essence, a capital contribution.\nIn one instance cited by the RAMO regarding the re-characterization of a financial transaction, an investment in a related party in the form of interest-bearing debt is not expected to be structured in the same way had it been conducted at arm\u2019s length given the economic circumstances of the lending company. In this case, it is appropriate for the transaction to be characterized according to its economic substance, and the loan may be treated as a capital subscription.\nNow, it is critical to know the following economically relevant characteristics which are useful indicators in accurately delineating intercompany advancement of funds according to OECD: (a) presence or absence of a fixed repayment date; (b) obligation to pay interest; (c) right to enforce payment of principal and interest; (d) status of the funder in comparison to regular corporate creditors; (e) existence of financial covenants and security; (f) source of interest payments; (g) ability of the recipient of the funds to obtain loans from unrelated lending institutions; (h) the purpose of the loan and business strategy; and (i) the purported debtor\u2019s ability to repay on the due date or to seek a postponement.\nThe RAMO also defined the steps to be undertaken by the taxing authority in testing the nature of loan transactions which are performing analysis of the need for the debt, confirming that the loan actually occurred, testing the arm\u2019s length nature of the debt-to-equity ratio, testing interest rate of loans with affiliated parties, determination of arm\u2019s length price; and applying the corresponding adjustments.\nINTEREST RATE BENCHMARKING ANALYSIS\nThe determination of the arm\u2019s length interest rate ultimately requires the identification of comparable transactions. In our previous articles, we discussed how the Comparable Uncontrolled Price method (CUP method) compares the price and conditions of products or services in a controlled transaction (i.e., between related parties) with those of an uncontrolled transaction (i.e., between unrelated parties). The OECD noted that the CUP method may be easier to apply to loan transactions than any other type of transactions due to the widespread existence of markets for borrowing and lending between independent borrowers and lenders. The arm\u2019s length interest rate for a tested loan can be benchmarked against publicly available data for other borrowers with the same credit rating for loans with sufficiently similar terms and conditions and other comparability factors.\nAccording to the RAMO, testing the interest rate of intercompany loans involves the comparison of such rates with those commonly used by independent parties, which are usually calculated from a particular interest rate (i.e., BSP, LIBOR, SIBOR, USOR, or JISOR) plus a certain amount based on the credit rating of the borrower.\nBased on the foregoing, the question now arises: Is it acceptable to merely use the interest rates published by Bangko Sentral ng Pilipinas (BSP) and other independent financial institutions as valid benchmark for interest rate of intercompany loans?\nNote that the OECD emphasized several factors to consider in determining the appropriate comparable interest rates such as the similarity of the terms and conditions of the transaction, the credit rating of the borrower and other economic factors.\nIn fact, the OECD acknowledges that comparability adjustments may be required due to the varying features of debt instruments. Characteristics that usually increase the risk for the lender, such as long maturity dates, absence of security, subordination, or application of the loan to a risky project, will tend to increase the interest rate. Characteristics that limit the lender\u2019s risk, such as strong collateral, a high-quality guarantee, or restrictions on future behavior of the borrower, will tend to result in a lower interest rate.\nGoing back to the question, interest rates published by BSP, and other independent financial institutions can be used as benchmark but are subject to comparability adjustments as discussed by the OECD.\nIn case that there are no comparable uncontrolled transactions which could reasonably be used as benchmark, the OECD suggests that the cost of funds approach may serve an alternative to price intra-group loans. This approach considers the following borrowing costs borne by the lender when raising funds to be lent: (a) expenses incurred in arranging and servicing the loan; (b) a risk premium to account for the various economic factors inherent in the proposed loan; and (c) a profit margin, which will generally include the lender\u2019s incremental cost of the equity required to support the loan.\nKeep in mind, however, that the cost of funds approach should be applied by considering the lender\u2019s cost of funds relative to other lenders operating in the market. Lenders cannot simply charge based on their cost of funds. It requires consideration of the options realistically available to the borrower as well. A borrowing entity would not execute a loan priced under the cost of funds approach if it could obtain the funding under better conditions by entering an alternative transaction.\nThe OECD also clarified that opinions issued by independent banks stating the interest rate the bank would apply were it to make a comparable loan to that particular entity are not sufficient evidence of an arm\u2019s length transaction. Such practice deviates from the arm\u2019s length approach to comparability since it is not based on the comparison of actual transactions.\nDEBT CAPACITY ANALYSIS\nIn addition to delineating the transaction and determining the arm\u2019s length interest rate, it\u2019s also important to demonstrate that the borrower would have been able to raise a similar quantity of debt from independent lenders.\nThe creditworthiness of the borrower is one of the main factors independent moneylenders take into consideration when entering into a loan agreement. Even on a personal level, you wouldn\u2019t extend a loan to a person you know is not financially capable of paying you back or has a history of failing to meet payment obligations, wouldn\u2019t you? Thus, it is imperative to assess the credit quality of the borrower in a controlled transaction.\nAn independent lender will usually carry out a thorough credit assessment of the potential borrower to enable the lender to identify and evaluate the risks involved and to consider methods of monitoring and managing these risks. Such credit assessment includes understanding the structure and purpose of the loan, determining the source of repayments, and analyzing the borrower\u2019s cash flow forecasts and the strength of its balance sheet.\nRemember, the ultimate objective of the arm\u2019s length principle is to ensure that a transaction is carried out as if it were entered into by independent parties. Hence, the related party lender is expected to perform a thorough credit assessment of the related party borrower, as if it were an independent financial institution.\nTAKEAWAY\nHoliday seasons may come and go, but as businesses continue to expand beyond global borders, the intricate webs of intra-group financial transactions are here to stay. And as we usher in a new taxable year, taxpayers must approach transfer pricing considerations on intercompany loans with a proactive mindset. \nThe RAMO and OECD provide detailed transfer pricing guidelines to ensure that financial transactions are carried out at arm\u2019s length. It is prudent that taxpayers prepare transfer pricing documentation containing the necessary information to establish that the terms and conditions of their intercompany loans are at arm\u2019s length. Although not yet prevalent in Philippine tax audits, transfer pricing issues relating to financial transactions are looming on the horizon and are something to watch out for in the future.\nLet\u2019s Talk TP is an offshoot of Let\u2019s Talk Tax, a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.\n \nPatrick Manuel R. Olarte is a manager from the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.\npagrantthornton@ph.gt.com", "date_published": "2024-01-01T20:23:58+08:00", "date_modified": "2024-01-01T20:23:58+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2021/04/economy-default.jpg", "tags": [ "Let's Talk Tax", "Patrick Manuel R. Olarte", "Economy" ] }, { "id": "https://www.bworldonline.com/?p=565972", "url": "https://www.bworldonline.com/economy/2023/12/28/565972/consumption-to-pick-up-as-inflation-eases-diokno/", "title": "Consumption to pick up as inflation eases \u2014 Diokno", "content_html": "CONSUMPTION will once again be the primary driver of economic expansion in 2024 as the threat from inflation recedes, Finance Secretary Benjamin E. Diokno said.
\nThe Development Budget Coordination Committee (DBCC) expects gross domestic product (GDP) to grow by 6.5%-7.5% next year, \u201ctaking into account the risks posed by the possible global economic slowdown, El Ni\u00f1o, and other natural disasters, as well as geopolitical and trade tensions,\u201d Mr.\u00a0Diokno said in a statement Thursday.
\nThe DBCC expects the economy to grow by 6-7% this year, and by 6.5-8% for 2025-2028.
\nGDP grew 5.9% in the third quarter, bringing the nine-month average to 5.5%.
\n\u201cGrowth in 2024 will be driven by private consumption as inflation is expected to return within the target range,\u201d the Department of Finance (DoF) said.
\nThe BSP last week maintained its 2-4% inflation target range through 2026, but said risks were weighted to the upside.
\nIts forecasts indicate inflation will likely decelerate next year and in 2025, \u201cgiven limited demand-based inflation pressures amid improving supply conditions.\u201d
\nHeadline inflation slowed to 4.1% in November from 4.9% in October, marking the 20th straight month of price growth breaching the BSP\u2019s 2-4% target. Year to date, inflation averaged 6.2%.
\nGrowth in 2024 will also be led by investment due to the Philippines\u2019 \u201csound macroeconomic fundamentals, investment-grade credit ratings, the implementation of structural reforms; and increased demand for Philippine exports as supply chain bottlenecks ease.\u201d
\nOn the supply side, growth will be driven by the services and industry sectors, the DoF said.
\nThe government\u2019s 2028 medium-term fiscal framework, which includes a deficit target of 5.1% of GDP, could also be achieved with the passage of proposed legislation to fund the P5.77-trillion budget for 2024.
\n\u201cThe economic team will continue to work with Congress in pushing for key reforms crucial to accelerating economic development,\u201d Mr.\u00a0Diokno said.
\nThis year, the government\u2019s deficit ceiling is set at P1.49 trillion, equivalent to 6.1% of GDP. The projection assumes P3.847 trillion in revenue and P5.34 trillion in disbursements.
\nThe Bureau of the Treasury reported that the National Government budget deficit narrowed by 24.8% to P93.3 billion last month from the P123.9-billion deficit in November 2022.
\nIn the year to date, the fiscal deficit contracted by 10.1% year on year to P1.11 trillion. This was equivalent to 74.1% of the full-year P1.499-trillion targeted deficit. \u2014 Aaron Michael C. Sy
\n", "content_text": "CONSUMPTION will once again be the primary driver of economic expansion in 2024 as the threat from inflation recedes, Finance Secretary Benjamin E. Diokno said.\nThe Development Budget Coordination Committee (DBCC) expects gross domestic product (GDP) to grow by 6.5%-7.5% next year, \u201ctaking into account the risks posed by the possible global economic slowdown, El Ni\u00f1o, and other natural disasters, as well as geopolitical and trade tensions,\u201d Mr.\u00a0Diokno said in a statement Thursday.\nThe DBCC expects the economy to grow by 6-7% this year, and by 6.5-8% for 2025-2028.\nGDP grew 5.9% in the third quarter, bringing the nine-month average to 5.5%.\n\u201cGrowth in 2024 will be driven by private consumption as inflation is expected to return within the target range,\u201d the Department of Finance (DoF) said.\nThe BSP last week maintained its 2-4% inflation target range through 2026, but said risks were weighted to the upside.\nIts forecasts indicate inflation will likely decelerate next year and in 2025, \u201cgiven limited demand-based inflation pressures amid improving supply conditions.\u201d\nHeadline inflation slowed to 4.1% in November from 4.9% in October, marking the 20th straight month of price growth breaching the BSP\u2019s 2-4% target. Year to date, inflation averaged 6.2%.\nGrowth in 2024 will also be led by investment due to the Philippines\u2019 \u201csound macroeconomic fundamentals, investment-grade credit ratings, the implementation of structural reforms; and increased demand for Philippine exports as supply chain bottlenecks ease.\u201d\nOn the supply side, growth will be driven by the services and industry sectors, the DoF said.\nThe government\u2019s 2028 medium-term fiscal framework, which includes a deficit target of 5.1% of GDP, could also be achieved with the passage of proposed legislation to fund the P5.77-trillion budget for 2024.\n\u201cThe economic team will continue to work with Congress in pushing for key reforms crucial to accelerating economic development,\u201d Mr.\u00a0Diokno said.\nThis year, the government\u2019s deficit ceiling is set at P1.49 trillion, equivalent to 6.1% of GDP. The projection assumes P3.847 trillion in revenue and P5.34 trillion in disbursements.\nThe Bureau of the Treasury reported that the National Government budget deficit narrowed by 24.8% to P93.3 billion last month from the P123.9-billion deficit in November 2022.\nIn the year to date, the fiscal deficit contracted by 10.1% year on year to P1.11 trillion. This was equivalent to 74.1% of the full-year P1.499-trillion targeted deficit. \u2014 Aaron Michael C. Sy", "date_published": "2023-12-28T20:23:33+08:00", "date_modified": "2023-12-28T20:25:10+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2021/08/mall.jpg", "tags": [ "Aaron Michael C. Sy", "Economy", "Editors' Picks", "One News" ] }, { "id": "https://www.bworldonline.com/?p=565971", "url": "https://www.bworldonline.com/economy/2023/12/28/565971/low-food-tariffs-will-help-but-agri-output-ultimately-needs-to-rise-balisacan/", "title": "Low food tariffs will help, but agri output ultimately needs to rise \u2014 Balisacan", "content_html": "THE extension of reduced tariffs on key food products will help mitigate inflation, but the Philippines will ultimately need to improve agricultural output, according to the National Economic and Development Authority (NEDA).
\nIn a statement Thursday, NEDA Secretary Arsenio M. Balisacan said the Philippines should also diversify its sources of imports to ensure the sufficiency and affordability of food. \u00a0
\nSuch measures would help mitigate the inflationary impact of El Ni\u00f1o, the persistence of African Swine Fever (ASF), and geopolitical disruptions and as supplier countries move to restrict their food exports.
\n\u201cShort-term and long-term interventions need to work together to protect the purchasing power of households and boost producer productivity and income. Doing so will ensure equitable and sustainable development,\u201d Mr.\u00a0Balisacan said. \u00a0
\nNEDA also said these strategies include sustained investment in irrigation, flood control, logistics, and climate change adaptation.
\nHeadline inflation slowed to 4.1% in November from 4.9% in October, marking the 20th straight month that inflation breached the central bank\u2019s 2-4% target range.
\nIn the first 11 months of the year, inflation averaged 6.2%, still above the central bank\u2019s 6% full-year forecast.
\nMeanwhile, the extension of the reduced Most Favored Nation (MFN) tariff rates for key agricultural commodities such as pork, corn, and rice will likely help keep food prices and overall inflation manageable, NEDA said.
\n\u201cSwine fever, production shortfalls in corn, and estimated supply deficits in rice drove price increases in these commodities for this year, (but) additional meat imports played a crucial role in reducing meat inflation to -1.2% in September 2023 from 21% in 2021,\u201d it said.
\n\u201cIn addition, the reduction on tariff rates had pulled down corn inflation and broadened market sources for rice, mitigating the impact of elevated inflation in September ,\u201d NEDA added.
\nPresident Ferdinand R. Marcos, Jr. last week signed Executive Order (EO) No. 50, which extends the reduced MFN tariff rates on rice, corn, and pork until Dec. 31, 2024.
\nThe rates for rice imports will be kept at 35% for shipments both within or over the minimum access volume (MAV) quota.
\nTariff rates for fresh, chilled or frozen pork were retained at 15% for shipments within the quota and 25% for those exceeding the quotas.
\nImports for corn are still to be charged 5% for shipments within MAV and 15% for those exceeding it.\u00a0
\nThe tariff rates on rice, pork, and corn are subject to review every six months, according to the EO. \u2014 Keisha B. Ta-asan
\n", "content_text": "THE extension of reduced tariffs on key food products will help mitigate inflation, but the Philippines will ultimately need to improve agricultural output, according to the National Economic and Development Authority (NEDA).\nIn a statement Thursday, NEDA Secretary Arsenio M. Balisacan said the Philippines should also diversify its sources of imports to ensure the sufficiency and affordability of food. \u00a0\nSuch measures would help mitigate the inflationary impact of El Ni\u00f1o, the persistence of African Swine Fever (ASF), and geopolitical disruptions and as supplier countries move to restrict their food exports.\n\u201cShort-term and long-term interventions need to work together to protect the purchasing power of households and boost producer productivity and income. Doing so will ensure equitable and sustainable development,\u201d Mr.\u00a0Balisacan said. \u00a0\nNEDA also said these strategies include sustained investment in irrigation, flood control, logistics, and climate change adaptation.\nHeadline inflation slowed to 4.1% in November from 4.9% in October, marking the 20th straight month that inflation breached the central bank\u2019s 2-4% target range.\nIn the first 11 months of the year, inflation averaged 6.2%, still above the central bank\u2019s 6% full-year forecast.\nMeanwhile, the extension of the reduced Most Favored Nation (MFN) tariff rates for key agricultural commodities such as pork, corn, and rice will likely help keep food prices and overall inflation manageable, NEDA said.\n\u201cSwine fever, production shortfalls in corn, and estimated supply deficits in rice drove price increases in these commodities for this year, (but) additional meat imports played a crucial role in reducing meat inflation to -1.2% in September 2023 from 21% in 2021,\u201d it said.\n\u201cIn addition, the reduction on tariff rates had pulled down corn inflation and broadened market sources for rice, mitigating the impact of elevated inflation in September ,\u201d NEDA added.\nPresident Ferdinand R. Marcos, Jr. last week signed Executive Order (EO) No. 50, which extends the reduced MFN tariff rates on rice, corn, and pork until Dec. 31, 2024.\nThe rates for rice imports will be kept at 35% for shipments both within or over the minimum access volume (MAV) quota.\nTariff rates for fresh, chilled or frozen pork were retained at 15% for shipments within the quota and 25% for those exceeding the quotas.\nImports for corn are still to be charged 5% for shipments within MAV and 15% for those exceeding it.\u00a0\nThe tariff rates on rice, pork, and corn are subject to review every six months, according to the EO. \u2014 Keisha B. Ta-asan", "date_published": "2023-12-28T20:23:22+08:00", "date_modified": "2023-12-28T20:25:12+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2022/10/Balisacan-Philstar-1.jpg", "tags": [ "Keisha B. Ta-asan", "Economy", "Editors' Picks", "One News" ] }, { "id": "https://www.bworldonline.com/?p=565970", "url": "https://www.bworldonline.com/economy/2023/12/28/565970/livestock-poultry-production-seen-falling-next-year/", "title": "Livestock, poultry production seen falling next year", "content_html": "By Adrian H. Halili, Reporter
\nLIVESTOCK and poultry production are expected to decline next year with imports admitted under lower tariffs discouraging producers from expanding, according to the Philippine Chamber of Food, Inc. (PCAFI).
\n\u201cWe have a negative growth outlook for the livestock and poultry sector next year affecting both backward linkages like corn production and forward linkages in the value chain,\u201d PCAFI President Danilo V. Fausto said in a Viber message.
\nThe Department of Agriculture has said that it plans to raise livestock production levels by five times in 2028.
\nAccording to the Philippine Statistics Authority, hog and goat production rose 3.3% and 0.1%, while dairy output fell 12.4%, as did that of cattle (-1.5%), and carabao (-0.3%), during the third quarter.
\nMr. Fausto said that the recent extension of a lower tariff regime on imported meat will set back the livestock and poultry industry.
\n\u201cBasically, imports will hurt livestock production especially now that lower import tariffs have been extended for another year,\u201d Mr. Fausto said.
\nExecutive Order 50 extended the lowered Most Favored Nation\u00a0 tariff rates on rice, corn, and pork until Dec. 31, 2024.
\nThe rates on pork meat, whether fresh, chilled, or frozen were kept at 15% for imports within the minimum access volume (MAV) quota and 25% for those exceeding the quota.
\nTariff rates for rice imports remained at 35% regardless of their source country or volume.
\nCorn shipments, on the other hand, were kept at 5% for shipments within the MAV quota and 15% for those exceeding the quota.
\n\u201cOur livestock producers will find it difficult to compete with imported meat and poultry products which are highly subsidized by exporting countries,\u201d Mr.\u00a0Fausto added.
\nAs of October, meat imports amounted to 1.02-billion kilograms, according to the Bureau of Animal Industry (BAI).
\nThe BAI reported that Brazil was the top supplier, accounting for 343.86 million kg. This was followed by the US and Spain with 179.64-million kg and 123.36-million kg, respectively.
\nMeat Importers and Traders Association President Jesus C. Cham said that lower costs for acquiring meat could potentially lower retail prices.
\n\u201cA lower-cost environment will always provide a better cushion against price increases. This will benefit consumers,\u201d Mr.\u00a0Cham said in a Viber message.
\n", "content_text": "By Adrian H. Halili, Reporter\nLIVESTOCK and poultry production are expected to decline next year with imports admitted under lower tariffs discouraging producers from expanding, according to the Philippine Chamber of Food, Inc. (PCAFI).\n\u201cWe have a negative growth outlook for the livestock and poultry sector next year affecting both backward linkages like corn production and forward linkages in the value chain,\u201d PCAFI President Danilo V. Fausto said in a Viber message.\nThe Department of Agriculture has said that it plans to raise livestock production levels by five times in 2028.\nAccording to the Philippine Statistics Authority, hog and goat production rose 3.3% and 0.1%, while dairy output fell 12.4%, as did that of cattle (-1.5%), and carabao (-0.3%), during the third quarter.\nMr. Fausto said that the recent extension of a lower tariff regime on imported meat will set back the livestock and poultry industry.\n\u201cBasically, imports will hurt livestock production especially now that lower import tariffs have been extended for another year,\u201d Mr. Fausto said.\nExecutive Order 50 extended the lowered Most Favored Nation\u00a0 tariff rates on rice, corn, and pork until Dec. 31, 2024.\nThe rates on pork meat, whether fresh, chilled, or frozen were kept at 15% for imports within the minimum access volume (MAV) quota and 25% for those exceeding the quota.\nTariff rates for rice imports remained at 35% regardless of their source country or volume.\nCorn shipments, on the other hand, were kept at 5% for shipments within the MAV quota and 15% for those exceeding the quota.\n\u201cOur livestock producers will find it difficult to compete with imported meat and poultry products which are highly subsidized by exporting countries,\u201d Mr.\u00a0Fausto added.\nAs of October, meat imports amounted to 1.02-billion kilograms, according to the Bureau of Animal Industry (BAI).\nThe BAI reported that Brazil was the top supplier, accounting for 343.86 million kg. This was followed by the US and Spain with 179.64-million kg and 123.36-million kg, respectively.\nMeat Importers and Traders Association President Jesus C. Cham said that lower costs for acquiring meat could potentially lower retail prices.\n\u201cA lower-cost environment will always provide a better cushion against price increases. This will benefit consumers,\u201d Mr.\u00a0Cham said in a Viber message.", "date_published": "2023-12-28T20:23:15+08:00", "date_modified": "2023-12-28T20:23:15+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2022/03/hogs-pigs.jpg", "tags": [ "Adrian H. Halili", "Economy", "Editors' Picks", "One News" ], "summary": "LIVESTOCK and poultry production are expected to decline next year with imports admitted under lower tariffs discouraging producers from expanding, according to the Philippine Chamber of Food, Inc. (PCAFI)." } ] }