Businessmirror November 30, 2018

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DEPT. OF SCIENCE AND TECHNOLOGY

PHILIPPINE STATISTICS AUTHORITY

2018 BANTOG DATA MEDIA AWARDS CHAMPION

BusinessMirror A broader look at today’s business

www.businessmirror.com.ph

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Friday, November 30, 2018 Vol. 14 No. 51

DBCC retracts proposal to suspend fuel tax hike

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By Rea Cu @ReaCuBM & Bernadette D. Nicolas @BNicolasBM

MONTH after recommending the suspension of the second tranche of the hike in fuel excise taxes next year as a way of reining in inflation, the country’s economic managers said on Thursday that the measure is no longer necessary. Members of the Development Budget Coordination Committee (DBCC) said they will recommend to the President the continued implementation of the scheduled increase in fuel excise tax to P2 per liter in 2019 under the Tax

Reform for Acceleration and Inclusion (TRAIN) law. The economic managers told reporters in a news conference at the Department of Finance headquarters in Manila that the scheduled increase in fuel excise tax must be

implemented in light of the favorable outlook in world oil prices. The DBCC noted that Dubai crude oil prices have gone down by 14 percent to $68 per barrel in November, from $79 per barrel last month. The average price, the DBCC

said, may maintain a downward trajectory and drop below $60 per barrel next year. Finance Secretary Carlos G. Dominguez III also told reporters that the DBCC considered the impact of the suspension on the government’s revenues and expenditures program for next year. Dominguez said suspending it for one year would lead to an estimated net revenue loss of P43.4 billion, assuming that Dubai crude oil prices average $65 per barrel next year. Dominguez said the erosion in revenue may force government to cut spending just to ensure that the programmed deficit level of 3.2 percent of GDP for 2019 will not be breached. Inflation, the DBCC said, continues to decelerate due to government Continued on A2

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@BcuaresmaBM

HE growth of consumer prices slowed down in November, the Bangko Sentral ng Pilipinas (BSP) forecast on Thursday, as global oil prices started to go down during the month. In its monthly inflation forecast, the BSP Department of Economic Research announced in a statement that it projected inflation to settle within the 5.8 to 6.6 percent range for November. This means that even if inflation hits the ceiling of its range for the month, it would still record a slowdown from the October print of 6.7 percent. “The deceleration of inflation for the month could be attributed to the sharp decline in petroleum prices,” the BSP said in a statement. The normalization of supply conditions in rice and other agricultural commodities, as well as the positive performance of the local currency during the month, also contributed to the tamer forecast. Data from the Central Bank showed the peso averaged at 52.819 to a dollar as of November 29, a stronger value compared to the 54.009

FACEBOOK, GOOGLE FAIL TO GIVE DOCS ON 6 BETS By Samuel P. Medenilla

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@sam_medenilla

NTERNET giants Facebook and Google may face charges from the Commission on Elections (Comelec) for failing to submit documents of their transactions with six national candidates during the 2016 elections. In a media forum, Mazna Lutzchavez of the Comelec Campaign Finance Office said the two firms did not submit the records for their ad deals with Senators Emmanuel “Manny” Pacquiao, Gregorio Honasan, Leila de Lima and Antonio Trillanes IV. They were also unable to produce the ad records of vice presidential candidates Ferdinand Marcos Jr. and Maria Leonor “Leni” G. Robredo.

SOCE proof

THIS, even after the six candidates officially declared in

average in the previous month. “These could be offset in part by the adjustments in jeepney and bus fares, as well as higher electricity rates in Meralco-serviced areas,” the BSP said. “Moving forward, the BSP will remain watchful of economic and financial developments to ensure the achievement of its primary mandate of price stability conducive to balanced and sustainable economic growth,” it added. Earlier this month, in their November policy meeting, BSP officials announced revised inflation forecasts for this year, and for 2019 and 2020. Continued on A4

PESO EXCHANGE RATES n US 52.6080

their Statement of Contribution and Expenditure (SOCE) their transactions with Facebook and Google. Pacquiao spent P36,375.74 on Facebook ads, which was contracted out from Dublin, Ireland, and P728,740.75. This made him the biggest spending among the six. However, the total cost of the boxing superstar’s ad spending online is still only around 2 percent of his P35.7million expenditures in the 2016 polls. He is followed by Trillanes, who spent P658,804.39 for online ads, also with Facebook Ireland Ltd. De Lima spent P128,693.19 for her Facebook advertisements; and Robredo P110,000 also with the same company. In the case of Marcos, he paid P450,000 for his “promotions and ad placement in the Continued on A2

Swimming ban slapped on 2 Panglao, El Nido sites

5.8 to 6.6% Forecast inflation range for November by the BSP Department of Economic Research as decline in global oil prices, resolved supply issues on rice and a betterperforming peso are taken into account

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As global oil prices ease, BSP sees Nov inflation slowing By Bianca Cuaresma

2017 EJAP JOURNALISM AWARDS

By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

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conditions remain supportive of the BSP’s price and financial stability objectives,” the Central Bank said in its statement on Thursday. The overall decline in cash supply growth is contrasted by the faster expansion of bank lending during the month, which remained elevated at 18.1 percent in October, from the 17.6 percent in September. In particular, loans for production activities increased at a brisker pace of 18.7 percent in October from

HE Inter-Agency Task Force on island destinations has ordered the local governments of El Nido and Panglao Island to implement a no-swimming policy in two beach areas. This was disclosed by Tourism Secretary Bernadette Romulo Puyat, who arrived Wednesday evening from an inspection trip of the two tourist towns, with Environment Secretary Roy A. Cimatu and Interior Secretary Eduardo M. Año. “We are not closing El Nido and Panglao, however, there should be no swimming in some beaches in El Nido and Panglao,” she said. The Department of Enviroment and Natural Resources (DENR) has been conducting monthly tests in the beach areas of the two tourist destinations and have determined Tawala 1 beach in Panglao and Buena Suerte in Panglao with “coliform levels exceeding the standard level.” As of October 2018, the fecal coliform count in Brgy. Tawala 1, where Alona Beach is located, is 16,000 most probable number

See “Cash supply,” A4

Continued on A4

TOURISM Secretary Bernadette Romulo Puyat (in orange cap) and Interior Secretary Eduardo M. Año (on Puyat’s left) oversee the measurement of the 3-meter easement on the beach of El Nido town on Wednesday. The two officials were with Environment Secretary Roy A. Cimatu to check on the reported environmental and easement violations by some establishments in the town. CONTRIBUTED PHOTO

Cash supply eased further in October–BSP

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ASH supply growth in the country remained at a single-digit expansion pace in October, easing further from the pace seen in the previous month. Data from the Bangko Sentral ng Pilipinas (BSP) showed domestic liquidity—broadly measured as M3 —grew 8.2 percent to about P11.1 trillion in October this year. This is a slowdown from the revised 9.8-percent growth seen in the previous month. A growing cash supply is often

beneficial for an expanding economy such as the Philippines, as it provides fuel to the productive sectors of the country. However, an excessively strong growth in M3 could further stoke inflationary pressures and pull prices upwards for the economy. An imbalanced cash supply growth is also an indicator that the economy is potentially overheating. “The BSP will continue to closely monitor domestic liquidity dynamics to ensure that monetary

n JAPAN 0.4630 n UK 67.4855 n HK 6.7231 n CHINA 7.5651 n SINGAPORE 38.3161 n AUSTRALIA 38.4564 n EU 59.8206 n SAUDI ARABIA 14.0236

Source: BSP (29 November 2018 )


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