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PHILIPPINE STATISTICS AUTHORITY
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BusinessMirror A broader look at today’s business
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Thursday, January 17, 2019 Vol. 14 No. 99
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Safeguard duty to cause cement lack, govt warned By Elijah Felice E. Rosales @alyasjah
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HE Philippines will suffer from a shortage in cement over the next months if the government decides to protect the local industry by imposing a safeguard duty, importers warned on Wednesday. Philcement Corp. President and CEO Eduardo A. Sahagun said cement supply could fall short if the Department of Trade and Industry
(DTI) places a safeguard duty on imports. He argued that local manufacturers are incapable of supplying the country’s requirement for the
construction commodity. Domestic producers were able to fill in the demand of 19.60 million tons in 2013 and 21.30 million
tons in 2014, Sahagun said, citing data from the Cement Manufacturers’ Association of the Philippines, DTI’s Bureau of Import Services and the Bureau of Customs. However, production fell short in 2015, when demand was at 24.36 million tons, but local supply was at 24.04 million tons only. The requirement in 2016 expanded to 25.96 million tons, but production declined to 23.49 million tons. The gap further widened in 2017, as demand accelerated to 28.55 million tons, while domestic supply was at 25.57 million tons only. Cement demand last year was estimated at about 32 million tons, Continued on A2
Bleak numbers for global, regional, local growth By Bianca Cuaresma
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@BcuaresmaBM
HE Philippines is seen to mirror the global economy this year, with a “mild” slowdown foreseen in its growth performance due to international tensions and tighter domestic monetary conditions. HSBC Chief Market Strategist for Asia Cheuk Wan Fan—who was part of a visiting team to the Philippines for the bank’s annual invesment outlook—told reporters on Wednesday they expect a tamer local growth to the tune of 6 percent for 2019. This is slower compared to the 6.1 percent in the first three quarters of 2018. It is also below the government’s growth target of 7 to 8 percent for this year. The economist said among the leading causes of a growth slowdown in the country are tighter liquidity conditions and higher interest rates. In 2018, the Bangko Sentral ng Pilipinas’s (BSP) main policy rate was incrementally raised by a total of 175 basis points—bringing the latest overnight reverse repurchase rate to 4.75 percent. This was the Central Bank’s response to the then stubbornly accelerating inflation rate, which hit a peak of 6.7 percent in September and October of 2018. The slowdown in HSBC’s growth projection for the Philippines mirrors their global 2019 outlook—which is seen to register a mild slowdown for the year to hit 2.6 percent. Continued on A2
Wanted: A Labor Code for all workers, not just for a segment of the labor force Rene E. Ofreneo
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RESIDENT Duterte recently signed into law the bill on “telecommuting.” Republic Act 11165 recognizes the legitimacy of work from home that is voluntarily and mutuall agreed upon by both the employer and the employee. The law specifies that the terms and conditions in a telecommuting work arrangement, facilitated by the ubiquitous computer and the Internet, shall not be less than the standards set by law. Fine. But where is the labor law for the Grab drivers? Where is the labor law for those registered with Upwork to do freelance work for overseas employers? Continued on A7
Jobs, wages, prices, federalism hot-button poll issues–experts
T No budget by February? Specl session looms By Bernadette D. Nicolas @BNicolasBM
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UDGET Secretary Benjamin E. Diokno warned on Wednesday that they will call for a special session if Congress does not pass the P3.757-trillion national budget by February. But he is still confident the lawmakers will be able to do their job to pass the 2019 budget before they hit the road to campaign for the midterm elections.
PESO EXCHANGE RATES n US 52.1280
“Because there is an election.... They have to hit the road. They have to campaign by the middle of February. Because if they don’t pass the budget, we will call them to a special session again and again, so that will take time away from their campaign so they must be thinking ‘let’s get this done so we can campaign.’That’s why I am confident,” Diokno said in a briefing in Diamond Hotel. Congress sessions resumed last January 14 and will run until February
8. Then Congress will go on recess from February 9 to May 19 for the 2019 campaign and midterm elections. The government is operating under a reenacted budget because of the Congress’s supposed failure to pass the budget before year-end last year due to a number of issues, including the late transmittal of the measure by the House to the Senate and alleged budget “insertions,” among others. See “Budget,” A8
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By Cai U. Ordinario
WORKERS line up at a construction site in Bonifacio Global City in this BusinessMirror file photo. Economic issues, such as the lack of decent jobs, low wages and high prices, are expected to be the primary issues in the May midterm elections, according to experts. NONIE REYES
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@caiordinario
HE lack of decent jobs, low wages and high commodity prices, as well as the shift to federalism, will likely take center stage in the discussions in the runup to the May 2019 polls, according to local experts. In the Wednesday Roundtable at Lido, Novo Trends PH political analyst Ramon Casiple also told reporters that security of tenure may be a major issue as well in this year’s polls. He added that politicians will be asked to take a stand on federalism. This will be the case because administration candidates will be bringing this issue to the fore. “In all elections, the No.1 one issue will be the economy, especially aspects of the economy that will have a direct impact on voters. Inflation, of course, will be there but more than that, I think employment will be the biggest issue,” Casiple said. “Security of tenure and wages and the overall issue on unemployment and underemployment are major issues. The candidate who will succeed in making that issue
“In all elections, the No. 1 issue will be the economy, especially aspects of the economy that will have a direct impact on voters. Inflation, of course, will be there but more than that, I think employment will be the biggest issue.”—Casiple
personal for the voter will have a big chance of winning,” he said. IBON Foundation Inc., in a separate statement, said job creation under the Duterte administration was the lowest among post-Marcos administrations. IBON, citing data from the Philippine Statistics Authority (PSA), said average annual job creation for 2017 and 2018 was only 81,000. The number of employed only increased by 162,000, from 41 million in 2016 to 41.2 million in 2018. This is below, IBON noted, the annual average job creation under Corazon Aquino in 1987-1992 at 810,000; Ramos in 1993-1998, 489,000; Estrada in 1999-2001, 842,000; Arroyo in 2002-2010, 764,000; and Benigno Aquino III Continued on A2
n JAPAN 0.4797 n UK 67.1617 n HK 6.6463 n CHINA 7.7101 n SINGAPORE 38.4453 n AUSTRALIA 37.5322 n EU 59.4989 n SAUDI ARABIA 13.8978
Source: BSP (16 January 2019 )