PBBM issues EO extending lower food tariffs By Patrick V. Miguel
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WORLD | A7
UKRAINE SAYS IT SHOT DOWN RUSSIAN FIGHTER JETS, DRONES AS COUNTRY OFFICIALLY MARKS CHRISTMAS
R ESIDEN T Ferd ina nd “Bongbong” Marcos Jr. has extended on Tuesday the temporary modification of rates of import duty on rice, corn, and meat products until December 31 next year. In Executive Order No. 50, Marcos cited the impact of El Niño on the price of goods, alongside effects of
the African Swine Fever and trade restriction in exporting countries. He also cited the “present economic condition” that called for the reduction of tariff rates on rice, corn, and meat of swine (fresh, chilled, or frozen). The continued application of the reduced tariff rates on goods will “maintain affordable prices for the purpose of ensuring food security, managing inflationary
pressures, help augment the supply of basic agricultural commodities in the country, and diversify the country’s market sources,” said Marcos. Under Section 1608 of the Republic Act No. 10863, or the Customs Modernization and Tariff Act, the President can modify existing rates of import duty “in the interest of general welfare and national security,” with the
recommendation of the National Economic and Development Authority (Neda). The Neda Board has endorsed the temporary extension of the reduced Most Favored Nation (MFN) rates earlier this December under EO No. 10 on rice, corn and meat of swine until December 31, 2024. E xec ut ive Secret a r y Luc a s B ers a m i n sig ned t he EO on December 22.
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n Wednesday, December 27, 2023 Vol. 19 No. 75
‘HIGHEST EVER’:BOI OKS P1.16T IN INVESTMENTS
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By Andrea E. San Juan
Generation cost pulls up Meralco tariff above CPI
@andreasanjuan
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HE Board of Investments (BOI) said it approved P1.16 trillion worth of investments as of December 18, 2023, the “highest ever” level in the agency’s 56-year history. Trade and Industry Secretary Alfredo E. Pascual, who also chairs the investment promotion agency attached to the Department of Trade and Industry (DTI), had earlier revised BOI’s investment approvals target for 2023 from P1 trillion to P1.5 trillion following the “strong”investment approvals in January 2023. In a statement sent to reporters through Viber over the weekend, BOI Managing Head and Trade Undersecretary Ceferino S. Rodolfo reported, however, that there are three more projects worth about P350 billion “that are currently being assessed.” “If they are able to comply with both the substantive and transparency requirements, they may be able to make it to the BOI Board and Mancom deliberations on December 28th—our last for the year,” Rodolfo said.
By Lorenz S. Marasigan @lorenzmarasigan
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COVID JITTERS Pedestrians took precautions by wearing face masks at
the Edsa-Kamias area in Quezon City on Tuesday, December 26, 2023. Dr. Tony Leachon, a health expert, has called on the government to enforce mandatory face mask usage in the next two weeks amid the rising Covid-19 cases. However, in A2 story, “DOH allays fears of Covid-19 spread as 18 JN.1 cases listed.” NONOY LACZA
PHL EYES COMPLEMENTING CHINA’S PRODUCTION FACILITIES
“With this remarkable milestone, we are all the more optimistic about opportunities that lie ahead in 2024, with the BOI poised to further catalyze smart- and sustainabilitydriven investments in the country.” -DTI SEC. ALFREDO E. PASCUAL
According to the BOI, the P1.16 trillion worth of investment approvals recorded in the Januaryto-December 18, 2023 period comes from 303 projects which are expected to generate 47,195 jobs in the country. As to the source of foreign investments, BOI noted that Germany emerged as the leading origin of investments, contributing P393.28 billion; followed by Netherlands with P333.61 billion; Singapore, P17.38 billion and the United States, with P3.38 billion. In terms of recipient of investments, Western Visayas gets to have the largest share of the pie with P316.89 billion; followed by Calabarzon at P211.89 billion. The Bicol region secured P162.92 See “BOI,” A2
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UJIAN, China—The Philippines, with its access to much of the world as a result of trade agreements and stable ties with leading Western economies, aspires to complement economic powerhouse China’s production facilities, according to an official of the Department of Trade and Industry (DTI). “Our aspiration also is to complement Chinese production facilities. Because the Philippines has access to the rest of the world because of [Regional Comprehensive Economic Partnership] RCEP, because of our economic partnership agreements, because of our stable relationships with the US, with EU,” Froilan Emil D. Pamintuan, DTI Commercial Vice Consul in Guangzhou, China, told the BusinessMirror during a recent trip to Fujian by a Philippine Economic and Trade Delegation.
“If you’re a Chinese company and you don’t want to place all eggs in one basket, you’d like to explore other areas where you can get comparative advantages when it comes to production and then when you export it will still be feasible,” Pamintuan also pointed out. The DTI representative in Guangzhou, China emphasized that the Philippines will always be a “feasible” option for China because of the proximity of China to the Philippines. Apart from locational advantage, Pamintuan cited other inherent advantages of the Philippines such as having a “relatively young” population and the Filipinos’ capability to communicate in English so that the country can cater to international markets. W it h t hese adv a nt a ges, Pamintuan underscored the importance of encouraging Chinese locators “to consider
the Philippines as a complementary site for their strategic businesses.” The Trade official said this does not mean that the Philippines should only place its bet on China, but stressed the importance of building strong bilateral trade relations with the economic powerhouse. “It doesn’t mean that we should only concentrate on China. With all countries we should foster strong economic relations especially [with] the big economies that can complement our development,” said Pamintuan. He emphasized that it is “very logical” for the Philippines to engage with China because it’s one of the top economies in the global arena. “It’s number 2 right now. In the future, it may be number one.” He pointed out that China is the Philippines’s top trading partner, top source of imports
and the third export destination. “As it is, we can’t really dissociate ourselves from China because raw materials-wise, market-wise, technology-wise, China will always be a factor when it comes to business.” In 2024, according to Pamintuan, the Philippine government will continue to promote “aggressively” Renewable Energ y, Infrastructure and Construction, Agriculture and Smart and Sustainable Manufacturing sectors to Chinese investors. “So every time we do investment forums or seminars, these are areas that we want Chinese investments or their resources to go into the Philippines, mainly because we need those types of activities,” Pamintuan said. Aligned with Trade and Industry Secretary Alfredo E. Pascual’s thrust for Science, See “China,” A2
HE cost of power in the National Capital Region (NCR) for the lowest 30 percent income segment rose faster over the past five years versus the overall rate of inflation, increasing by 6.4 percent since 2018, according to the International Energy Consultants (IEC). Based on the study that Manila Electric Co. (Meralco) sent to the media, the company’s prices grew by 6.4 percent from 2018 to 2022, ranking second next to transport at 8.2 percent. Petrol came in third at a fiveyear increase of 6.3 percent, followed by food at 5.2 percent. The average consumer price index (CPI) for NCR was at 4.1 percent. “Inflation has hit the lowest income households hardest, over the past 5 years. Average CPI is up 3.1 percent p.a. for all households in the NCR but has risen at 4.1 percent p.a. for the lowest 30 percent income segment. Meralco’s tariffs have increased significantly faster than the overall rate of inflation entirely because of the increase in generation costs,” the IEC study said. Generation cost represents 71.4 percent of Meralco’s regulated retail tariff. IEC found that between 2018 and 2022, Meralco’s generation costs increased by 46 percent, with crude oil up by 32 percent and coal surging by 270 percent. When compared with other countries, Meralco’s average tariff ranked 21st out of 46 energy markets. It was 3 percent below the global average. The study added that if subsidized markets were excluded, the power distributor’s tariff would even be 13 percent lower than the world average. IEC also noted that electricity tariffs of the Philippines’s neighbor countries, particularly Thailand, Indonesia, Malaysia, Korea, Taiwan and Vietnam, are more than 50 percent subsidized. On the average, Meralco’s tariff rose by 24 percent over the past five years, on a par with the global See “Meralco,” A2
PESO EXCHANGE RATES n US 55.6860 n JAPAN 0.3919 n UK 70.6767 n HK 7.1317 n CHINA 7.7980 n SINGAPORE 41.9923 n AUSTRALIA 37.8720 n EU 61.3214 n KOREA 0.0430 n SAUDI ARABIA 14.8452 Source:
BSP (22 December 2023)