China lockdowns may dent PHL manufacturing
‘Close borders, cut Omicron exposure risk’ By Cai U. Ordinario @caiordinario
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HINA’S struggle to contain the spread of Covid-19 may dent @caiordinario the performance of the Philippines manufacturing and export LOSING the country’s borders performance in the coming months, is one of the most immediate according to local economists. courses of action the governThetake Chinese government ment must to prevent the lat- recently implemented what is called est Covid-19 variant, Omicron, from a “dynamic clearance” in imporreaching Philippine shores, accordtant trade hubs or large cities like ing to local economists. Shanghai to prevent the spread T he new var iant is a threat, of e s p e Covid-19. c i a l l y w it h t he hol id ay s Watch Senior FelcomingAteneo up andEagle more foreigners low Leonardo A. Lanzona Jr. said being a llowed to travel to the these lockdowns could intensify Philippines, De La Sa lle Universupply side Mar constraints now being sit y economist ia Ella Oplas experienced by global and regional told BusinessMirror. trade. The holidays usually bring in situation ‘dynamic Overseas“ The Filipino Workersof(OFWs) clearance,’ the term used in Chiwho are eager to spend Christmas By Cai U. Ordinario
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na for lockdowns, would further strengthen the supply side constraints which up to now affects regional withglobal theirand loved ones, trade. while This for- of course leads to shortages and eveneigners living in temperate regions tually inflation,” Lanzona told usually want to relax in tropicalthe BusinessMirror. countries like the Philippines. This “The situation can offset much year’s influx of OFWs is expected to of the gains we have made terms be heavier since many of theminwere of production and since the unable to come home fortrade the holidays start of the year when we began to in December 2020. reduce our virus restrictions,” “My recommendation is to protect he added. Do not allow people with the borders. Lanzona the country’s a history of travelsaid to countries with manufacturing performance may positive cases to enter,” Oplas said. slow down unless the Philippines “We should be more restrictive. [We trade with other havedevelops to be] more protective incountries terms in the Asia and the Pacific region. of our measures.” Oplas said that while this will be Look beyond a setback to someChina industries, this “THE goal thenconsidering is to look forthat other is a fair measure markets than China. This can prove this could help prevent placing the to bein a challenge so it is crucial also country another strict lockdown,
that we shift our attention to our agricultural sector to ensure food production and reduce shortages that she cansaid, leadthe to economy price increases,” which, can no Lanzona said. longer afford. of the University “It Former is betterDean that we do protective of the Philippines School of Ecopreventive measures than get exnomics Ramon L. Clarete said the posed again. We have a lot to lose,” situation in China would “badly” Oplas said. “We should do it now so affect regional andbefore globalChristtrade as that we can open just it accounts for 30 percent of the mas. If it gets contained, we can open world’s manufacturing sector. it again.” Clarete said in terms of car manAteneo Center for Economic Reufacturing, China is an important search and Development (ACERD) player as Director it suppliesSer batteries used Associate Percival by Tesla vehicles. Other commodiK. Peña-Reyes said closing the ties are borders bound to be affected country’s would be effec-by these lockdowns. tive but should still adhere to the He said Philippines, as a standards set the by the World Health value adder in the manufacture Organization (WHO). of electronic What is needed,products, Peña-Reyeswould told be affected through its imports. this newspaper, is for travel restricThese will swiftly also affect tions to beimports put in place and
the country’s top export product, semiconductors. Clarete said factories, including Philippine Economic Authorfor government to beZone proactive in ity (Peza) locators, would experiimposing them. ence a slowdown as the “holdup in Previous instances when the global supply” will drag industrial country had the opportunity to imperformance. pose travel restrictions did not preis likeof the curse of globalizavent“This the spread Covid-19. That was tion. The global supply chains mainly because the decision washave not to innovate into more participants made immediately, he said. in“Kung the chain to manage the[If riskwe’re such papatay patay as lockdown in a supplying country,” slow] and we get caught flat-footClarete told this newspaper. ed, [that’s risky] We were too re“For now, Philippines] active instead of[the proactive before. could focus on non-tradables like We should learn from that,” Peñafood and agriculture, processed Reyes said. “It’s a delicate balancing food thetodomestic market, act. Wefor need push testing and mining to stockpile, [as well as] tracing to be properly informed such as Blanket/shotgun tourism and BPO ofservices our decisions. [Business Process Outsourcing],” approaches could have dire consehe added. quences on the economy.” See “China,” A2 See “Omicron,” A2
NEW COVIDBORROWINGS CURBS PULL NATL GOVT w w
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n Tuesday, April 19, 191 Monday, November 29, 2022 2021 Vol. Vol.17 17No. No.52
P25.00 P25.00 nationwide nationwide || 22 sections sections 22 20 pages pages ||
DOWN FLOW FOR 10 REMITTANCE MOS DIP TO P2.75T
Capping prices, Omicron food exports risk wrong inflationspurs busters–WB revival of quarantine rules in PHL
By Bernadette D. Nicolas
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@BNicolasBM
HE national government’s gross borrowings as of end-October shrank by almost 6 percent year-on-year to P2.75 trillion.
By Cai U. Ordinario @caiordinario
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Latest data from the Bureau of the Treasury showed that the government’s gross borrowings during the 10-month period fell by 5.99 percent from P2.92 trillion a year ago. With only two months left for this year, the latest figure is already equivalent to 89.6 percent of its P3.07-trillion borrowing program. Broken down, gross domestic borrowings from January to October settled at P2.23 trillion, down by 5.08 percent from P2.35 trillion in 2020. The bulk of the amount was PEOPLE walk past the mural of Gat Andres Bonifacio at Manila City Hall Underpass. sourced from Fixed Rate Treasury Thetheir country celebrate 158th birth anniversary of office Filipino TAXPAYERS are given an unusual incentive as they pay taxeswill at the Bureauthe of Internal Revenue regional in revolutionary Pasay City. The BIR said there will be no extension of the April 18, 2022, deadline for Bonds (P1.19 trillion), followed by ROY DOMINGO heroare Gatallowed Andresto Bonifacio on Tuesday, 30.2022, the filing and payment of taxes for 2021, but taxpayers amend their returnsNovember until May 16, without penalties. NONIE REYES short-term borrowings from Bangko Sentral ng Pilipinas or BSP (P540 By Bianca Cuaresma @BcuaresmaBM billion), Retail Treasury Bonds/Premyo Bonds (P463.3 billion), Retail Onshore Dollar Bonds (P80.84 billion). In the same period, there was By Jasper Emmanuel Y. Arcalas dating its registry following the them. This allows everyone to see also a net redemption of Treasury @jearcalas enactment of the Coconut Farmwho are listed in the registry and if Bills amounting to P43.94 billion. By Bernadette D. Nicolas “Thisdoesn’t report only shows that thehe ers and Industry Trust Fund law. farmer see his name then Net debt redemption means @BNicolasBM Philippine government has always ORE than 3 million Rosales explained that about shall coordinate with the PCA imthere were more debts repaid combeen supportive of our IPAsatinatheir coconut farmers and 500,000 coconut farmers and mediately,” he explained recent pared to the amount borrowed durINANCE Secretary and operations and investment promoworkers are now regisworkers were added to the PCA’s dialogue with coconut farmers. ing the period. Fiscal Incentives tion“On efforts,” was tered with the government’s reg2018 list that had about 2.5Review million theDominguez other hand, if quotpeople Meanwhile, gross foreign borBoard (FIRB) Chairman ed as saying during a recent DOF istry, which serves as the basis coconut farmers and farm workers. would see names on the list and rowings in the same period also Carlos G. Dominguez III said Executive Committee meeting. for the number of people to be The PCA’s next step is to conthey think they are not coconut contracted by 9.7 percent to P518.7 investment promotion agen“It is only right that they [IPAs] covered by the utilization of the duct an exclusion-inclusion profarmers or their details are incorbillion from last year’s P574.4 billion. cies (IPAs) should maximize the maximize the budgetary support P75-billion coconut levy fund. cedure by making the updated rect, they can report it to the PCA This was raised through global The (P146.17 Central Bank reported on ary to February cash remittance inbudgetary supportpublic, that they get they get from theaction,” nationalhe governPhilippine Coconut Authority farmers’ registry providfor immediate added. bonds billion), program Monday that cash remittances flow in 2021 was at $5.078 billion. from the national government ment, and translate their efforts (PCA) Deputy Administrator Roel ing everyone the opportunity to The PCA official noted that loans (P139.98 billion), euro-decoursed through hitbillion), $2.509 Broken down, and focus on attracting more into attracting more M. Rosales saidboth aboutland-based 3.11 million check the veracity of the list, Rothe completion of theeconomiinitial list nominated bondsbanks (P121.97 billion inloan February thisbillion), year, upand by overseas Filipino workers (OFWs) foreign investments amid the cally stimulating and productive coconut farmers and farm worksales added. of coconut farmers registry would a project (P86.41 1.3 percent from $2.476 billion regand sea-based OFWs were able to Covid-19 pandemic. foreign investments, especially in ers have been registered with the “The list will be posted in public be just in time for the expected yen-denominated samurai bonds istered in the same month in 2021. grow their remittances in FebruDominguez made the remark this time of the pandemic, that government since it started upspaces where people can easily see rollout of coconut levy-funded (P24.19 billion). The growth, however, was the ary this year. In particular, landin response to the report of the would create jobs and supercharge See “Borrowings,” A2 slowest monthly remittance growth based OFWs’ remittances increased FIRB Secretariat that the naour economy,” he added. for the country since January 2021, by 1.2 percent from $1.983 billion tional government spent a whopHowever, the Philippine EcoUS$2.007 50.4600billion n JAPAN n UK 67.2329ping nP58 HKbillion 6.4722 for nitsCHINA 7.9013 n nomic SINGAPORE 36.8968 (Peza) n AUSTRALIA when it contracted by 1.7 percent. n to while0.4374 sea-based budgetary Zone Authority and The BSP said the growth was workers grew theirs by 1.6 percent support to IPAs in the last five the PHIVIDEC Industrial Auslower due in part to the reimpofrom $493 million to $501 million. years. thority (PIA) were not included sition of restrictions in overseas The BSP also said the growth in Of the total, P5.07 billion in the list of budgetary support Filipino host countries and the cash remittances from the United was received in 2021 alone by recipients, as the two agencies Philippines amid a resurgence in States, Japan, and Singapore conthe IPAs from the government, are already self-sufficient and Covid-19 cases across the globe. tributed largely to the increase in according to DOF Assistant do not receive budgetary support For the first two months of the remittances in the first two months Secretary and FIRB Secretariat from the national government. year, cash remittance grew by 1.9 of 2022. Head Juvy Danofrata. See “Investment,” A2 percent or $5.177 billion. The JanuSee “New covid,” A2
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ORLD Bank economists have warned countries against imposing price controls and restricting food exports as a means of arresting rising domestic food prices. In a blog, World Bank economists Clemens Graf von Luckner and Kathryn Holston as well as Senior Vice President and Chief Economist of the World Bank Group Carmen Reinhart noted that food prices have been climbing since the pandemic began. The economists also raised alarm bells on the impact of the Ukraine-Russia war, the first war in Europe since 1945, noting it also contributed to the rise in food prices. Some countries have seen an increase in food inflation of above 4 percent. “A food crisis on the scale of 2008 may or may not repeat itself in 2022. But whether it does or it does not, policymakers across the globe would do well to avoid the mistakes of the past,” the economists said. “A pre-emptive and rapid response from the international community addressDuterte the food programs as to President price crisis is critical to prevent is expected to sign the industrythe worst humanitarian outcomes development plan in early 2022.and
‘INVESTMENT PROMOTING UNITS OVER 3-M FARMERS LISTED FOR P75-B MUST USE BUDGET BOOST WELL’COCO LEVY FUND
ILIPINO migrant workers still managed to send more money back home in February this year, despite the reimposition of lockdowns due to the resurgence of the cases during the month. The growth in remittances, however, is the slowest recorded in more than a year, data from the Bangko Sentral ng Pilipinas (BSP) showed.
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PESO EXCHANGE RATES
PESO EXCHANGE RATES n US 51.9750
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Rosales said the PCA will not stop updating its list of coconut farmers and enjoined them to register in order to reap the benefits of the decades-long idled coconut levy fund. “We will not stop at 3.1 million. We hope that more individuals will register in our coconut farmers registry,” he said. The updating of the coconut farmers registry is mandated by Republic Act (RA) 11524 or the Coconut Industry Trust Fund Act. See “3-M farmers,” A2
By Samuel P. Medenilla @sam_medenilla
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NTER NATIONA L concerns over the possible spread of the “A food crisis on the scale of 2008 may or may more infectious Omicron Conot repeat itself in 2022. But whether it does vid-19 variant prompted the govor it does not, policymakers across the globe ernment to reimpose mandatory would do well to avoid the mistakes of the facility-based quarantine for all past.”—World Bank economists arriving passengers in the country. Acting Presidential spokesperlessen the B. risk of panicky policy son Karlo Nograles announced responses,” they added. on Sunday that the Inter-Agency TheForce economists the 2008 Task for thesaid Management food crisis was aggravated by the of Emerging Infectious Diseases restrictions imposed by a third of (IATF) suspended the implemenall emerging markets and developtation of its Resolution No. 150ing countrieseffectively (EMDEs). imposing A (s.2021), However, since theall pandemic, stricter protocols for inbound the economists said the onset of travelers. theToRussia-Ukraine war, EMDEs note, IATF Resolution 150have implemented these policies. A had allowed fully vaccinated One caveat, the economists non-visa travelers from Greensaid, List is the difficulty in removing areas to enter the country these withpolicies lead to larger out thewhich need could for facility-based economic “distortions.” quarantine as long as they secure Another common policy that negative Reverse Transcriptioncountries, especially low-income Polymerase Chain Reaction (RTcountries, to is price PCR) test often withinresort 72 hours prior control. Governments implementto their departure. ed “Except these as for thecountries purchasing power classified of households weakened. as ‘Red,’ the testing and quarantine See “WB,” A2 protocols for all inbound international travelers in all ports of entry shall comply with the testing and quarantine protocols for ‘Yellow’ list countries,” Nograles said, citing the provision of IATF Resolution No. 151-A. He noted Hong Kong, which has confirmed a case of the Omicron variant, will also fall under the Yellow list countries. The suspension of the rules for “Green List” countries will be in effect from November 28, 2021 to December 15, 2021. Continued on A2
36.2807 n EU 56.5758 n SAUDI ARABIA 13.4531
n JAPAN 0.4112 n UK 67.8897 n HK 6.6269 n CHINA 8.1579 n SINGAPORE 38.2817 n AUSTRALIA 38.4147 n EU 56.1798 n SAUDI ARABIA 13.8600
Source: BSP (November 26, 2021)
Source: BSP (April 18, 2022)