Sep 072016
 
DA chief: Lifting QR on rice disastrous for local farmers

MANILA, Philippines – The Department of Agriculture insists a plan to remove quantitative restriction (QR) on rice imports will be disastrous to local farmers. “The Filipino rice farmers are not ready yet for the lifting of the QR mainly because of negligence on the part of the government in the past,” Agriculture Secretary Emmanuel Piñol said. He said Filipino rice farmers could not yet compete with neighboring rice-producing nations should the government finally decide to lift import restrictions on rice. In the Philippines, the cost of producing palay (unmilled rice) is around P10-12 per kilo as against the P6 to P10 per kilo in Vietnam and Thailand. “We need at least two years to improve the average rice production per hectare to at least five to six tons and lower the cost of production per kilo to a maximum of P8,” Piñol said. “Until such time these are achieved, lifting the QR would be disastrous to the Filipino rice farmers,” he added. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 On the contrary, National Economic and Development Authority (NEDA)-Agriculture, Environment and Natural Resources director Mercedita Sombilla said farmers have remained disadvantaged even with the current implementation of the QR. “Even with the QR, farmers were never that much advantaged, especially the small rice farmers who are net consumers of rice for most part of the year and hence have to face the same higher rice prices,” Sombilla said in an email to The STAR. “If you look at and Read More …

Sep 072016
 
Domestic concerns spook investors

Police officers stand beside bodies of victims after an explosion at a night market that has left at least 10 people dead and wounded several others in Davao city, Philippines late Friday, Sept. 2, 2016. AP Photo/Manman Dejeto   MANILA, Philippines – Domestic concerns, primarily the explosion in Davao, as well as the tiff between President Duterte and US President Barack Obama have started to spook investors, analysts said yesterday. The benchmark Philippine Stock Exchange index (PSEi) plunged 100.08 points to close at 7,619.10, while the broader All Shares index retreated 51.49 points to close at 4,542.35. The rest of the counters followed the same track except for the mining and oil, which managed to stay afloat with a 13.41-point increase at 10,695.52. Analysts said domestic concerns have started to weigh on sentiment and in the long term could further spook investors. In a report yesterday, for instance, Moody’s warned that if recent events lead to prolonged uncertainty around security or economic policy, such a development would eventually dampen business confidence and, consequently, economic outcomes. On Sept. 2, a bomb detonated in a night market in Davao City, the largest municipality in the southern region of Mindanao. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Following the incident, President Duterte declared a “state of lawlessness” nationwide, paving the way for heightened security measures, including the stepped-up deployment of soldiers and policemen in key areas. Moody’s said the near-term sovereign credit impact of these developments is limited as we do Read More …

Sep 072016
 
More from insightful readers

We give way to more readers who have sent in their thoughts about the past topics that this column has tackled. Here’s one from Engr. Alex G. Serrano of Legazpi City, who welcomingly tackles – what else – the seemingly untameable traffic issue of Metro Manila. Here’s his contribution. “I write to you occasionally to share my ideas on important current issues, a couple of which you have already included in your column, for which I am very thankful. “This time I would like to share with you my idea of a network of elevated walkways (inspired by ideas from Arch. Palafox) that would somehow relieve the traffic along EDSA, and at the same time greatly improve pedestrian mobility in our major CBDs. “My idea is (to construct) in two phases. Phase I is a network of walkways connecting CBDs to EDSA, and Phase II is a linear network of walkways along EDSA from Makati to Cubao. Phase I “1. Elevated covered walkway from MRT3 Ayala Station to McKinley Road connected to a network with access to Bonifacio High St., Burgos Circle, Market Market, SM Aura and strategic commercial buildings. “2. Elevated covered walkway from MRT3 Ayala Station passing alongside SM and Landmark to Makati Ave., along Makati Ave. to Ayala Ave., along Ayala Ave. to Buendia Ave., along Buendia Ave. to Pasong Tamo, along Pasong Tamo to Makati Square, from Makati Square to Glorietta. This network should have links with the existing network within Makati CBD. “3. Elevated covered Read More …

Sep 072016
 
Forex reserves hit new record in August

BSP Governor Amando Tetangco Jr. said last month’s gross international reserves (GIR) level was $390 million higher than the previous record of $85.51 billion booked in July. File photo MANILA, Philippines – The country’s foreign exchange reserves continued to strengthen, hitting a new  all-time high of $85.9 billion in end-August, the Bangko Sentral ng Pilipinas (BSP) reported yesterday. BSP Governor Amando Tetangco Jr. said last month’s gross international reserves (GIR) level was $390 million higher than the previous record of $85.51 billion booked in July. The GIR is the sum of all foreign exchange flowing into the country. The reserves serve as buffer to ensure  the Philippines would not run out of foreign exchange it could use to pay for imported goods and services, or maturing obligations in case of external shocks. If it deems necessary, the BSP buys dollars from the foreign exchange market to prevent sharp depreciation of the peso. It can also sell to avoid sharp appreciation of the local currency. Tetangco attributed the increase to the national government’s net foreign currency deposits as well as income from the central banks foreign exchange operations and investments abroad. Data showed earnings from the BSP’s investments abroad inched up  0.88 percent to $73.94 billion in August from $73.29 billion in July. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 On the other hand, the BSP chief said the increase was partially offset by payments made by the national government for its maturing foreign exchange obligations as well as Read More …

Sep 072016
 
Pursuit for real inclusive growth

Presidential consultant for entrepreneurship Joey Concepcion with Tan Sri Dato’ Dr. Mohd Munir Bin Adbul Majid, chairman of ASEAN-BAC Malaysia; Christine Lagarde, managing director of International Monetary Fund; and Oudet Souvannavong, chairman of ASEAN BAC. The theme of this year’s ASEAN Business and Investment Summit (ABIS) in Vientiane, Laos, of which I had the privilege of attending, is “Operationalizing AEC – Turning Vision into Reality.”  ABIS is ASEAN’s premier annual business and investment event and is currently hosted by Laos. AEC, or ASEAN Economic Cooperation, is an ongoing concern that is close to my father’s heart.   Aside from being known for NAMFREL, I can still remember my dad JoeCon being active in the ASEAN Chambers of Commerce and Industry (ASEAN-CCI).  He was named founding chairman of the ASEAN Business Advisory Council (ASEAN-BAC) Philippines, with Miguel Varela and Rose Teodoro as fellow council members. This was his passion and many of the council members are his good friends. He was one of the senior members in the council. I am glad to have the same passion that my dad had. During the summit, I was appointed as the new chair for the ASEAN-BAC Philippines. I am honored. This is a big role to take on, but I am willing and look forward to the things we can do for the country. Next year, the Philippines will host the ASEAN Summit to be led by President Rodrigo Duterte who has been recognized by the regional leaders for his political will. He was warmly received Read More …

Sep 062016
 

The first of September 2016 marks the resumption of the previously-suspended tax audits being handled by the Bureau of Internal Revenue (BIR). This was by virtue of Revenue Memorandum Circular (RMC) No. 91-2016. The said RMC mentioned that the lifting of the suspension was done since “the conferred authority under the laws to the BIR for the collection of taxes, to be more effectively administered and implemented, requires some form of enforcement activities to ensure the collection of correct taxes at the times prescribed by the law.”

Sep 042016
 

DAVAO CITY — Members of the Mindanao Association of Mining Engineers (MAEM) will hold their annual summit this month, now on its 22nd year, but this time with the participation of all stakeholders in an attempt to get a consensus on the direction of the industry that is undergoing a shake-up from the Duterte administration.