NIC clears Innovation Fund drawdown for 19 projects

THE National Innovation Council (NIC) has approved 19 projects to tap into the government’s Innovation Fund, according to the National Economic and Development Authority (Neda).

In a briefing in Malacañang, Neda Secretary Arsenio M. Balisacan said the 19 projects will draw P115 million from the Innovation Fund.

Balisacan said the Innovation Fund is a revolving fund that aims to strengthen entrepreneurship and enterprises engaged in developing innovative solutions.

“Innovation plays a critical role in our pursuit for sustained and accelerated economic growth and development, as it serves as a catalyst for raising overall productivity and elevating the quality of our goods and services,” Balisacan said. “Only through a collective national effort can we truly pursue and attain these goals for our future.”

The project that received the largest funding was the Grassroots Innovation for Inclusive Development (GRIND): Bringing Science and Technology (S&T) closer to the Margins, with P15 million. This is

THE Makati Business Club (MBC) on Tuesday urged members of the Senate to ratify the Regional Comprehensive Economic Partnership (RCEP) which the business group said could help businesses expand abroad and accelerate job creation, among others.

“We believe joining RCEP is essential to this, as it will comprise 15 countries, 2.1 billion people, and around 30 percent of global [gross domestic product] GDP,” MBC said in a statement on Tuesday.

While the regional trade deal would help the Philippines enter foreign markets, the local business group said it would also “expose” the country’s local industries to more competition at home.

“We recognize that there are valid concerns about this. However, we believe that adequate safeguards have been included,” the local business group said, adding that they believe competition will result in “better local players and better products and services for Filipinos.”

See “MBC,” A2

MBC. . .

Continued

The local business group said it welcomes the effort that the Administration, especially Trade Secretary Alfredo E. Pascual and the DTI have exerted to further RCEP.

With this, MBC is encouraging the Senate to give it “positive consideration.”

A part from MBC, other local business groups that have recently joined the call for the Senate to ratify the regional trade deal are Employers Confederation of the Philippines (ECOP) and Philippine Chamber of Commerce and Industry (PCCI).

Sergio Ortiz-Luis, president of ECOP, said that “among our ASEAN neighbors, we are at the tail end.”

H e said ratification by the Senate, which was reported to have set the voting on Tuesday, “will bring us competitive with others, at least to a certain degree.We can’t afford not to have trade agreements and, at the same time, to not be part of it,” he said.

Mean while, the PCCI called on the Senate anew to ratify the regional trade pact, which it said will play a “key role” in sustaining the Philippines’s “growth trajectory.”

In a lett er to Senate President Juan Miguel Zubiri, PCCI President George T. Barcelon said RCEP will “provide unparalleled opportunities for Philippine businesses and prime the country for further economic growth and development.”

T he PCCI head also cited the consequences of not participating in the regional trade deal, including putting the country’s exports at a disadvantage considering RCEP’s “growing area.”

F urther, he said not joining will be “detrimental to our goal to bring in foreign investments as investors would rather look at an RCEP signatory country to obtain preferential treatments among the RCEP countries.” Andrea E. San Juan meant for protection—bears no comfort for the local sectors, because under the treaty, the Executive Department or Congress can change “tomorrow, next week, next month” the exclusion lists embodied in the annex of the RCEP. The annex is not considered a formal part of the treaty, he noted.

Minority Leader Koko Pimentel, the last to interpellate Zubiri, noted that initially, only 10 groups had openly objected to ratification, but now, he added, there are 100 groups and individuals who put out an ad rejecting ratification. He wondered aloud if their serious concerns about the treaty’s impact can be fully redressed.

Legarda conceded that “this is not a magic pill,” but added that, “only the industry can give positive changes.” RCEP or not, “we have to help affected sectors,” she stressed.

Neda chief: Only chance for FDI, jobs IN a separate development also on Tuesday, the National Economic and Development Authority (Neda) said RCEP “must be ratified” since the trade deal will ensure the country is able to attract investors to ensure the economy’s recovery.

In a virtual briefing, Neda Secretary Arsenio M. Balisacan said ratifying the RCEP will ensure that the country can compete with its neighbors in terms of attracting foreign investments.

He said the country and its neighbors are competing to attract the same investments. Signing on to the RCEP improves the country’s chances of seeing those investments come to the Philippines.

Based on 2021 trade data from the International Trade Center, under the RCEP, only 15 agricultural commodity groups corresponding to 33 tariff lines will have lower tariff rates compared to some ASEAN+1 FTAs, the NEDA said.

This is equivalent to only 1.9 percent of the total 1,718 agricultural lines and only 0.8 percent of the total agricultural imports. Of these 33 tariff lines, 17 are raw materials, 8 are intermediate products, while only 8 are final goods.

The remaining agricultural tariff lines will have equal or higher rates compared to other ASEAN+1 FTAs, or are excluded from import tariff concessions under the RCEP.

The Philippines currently exports a number of products for which concessions were secured (e.g., preserved pineapples, pineapple juice, chocolate) and securing better market access for these products through RCEP opens the possibility to further widen the market base in these countries.

Take it or leave it

EARLIER on Sunday, Escudero had said the vote ratifying the RCEP should not be rushed, as senators are closely studying serious concerns raised about the risk of the treaty adversely impacting some Philippine economic sectors.

It’s a “take it or leave it” propo - sition, because “we senators can only vote to ratify or reject the treaty,” and “it’s not the usual lawmaking we do where we can tweak provisions to cure perceived problems,” Escudero explained, partly in Filipino, in a radio interview.

Sixteen senators last week signed the committee report on RCEP, and no less than Zubiri delivered an impassioned speech on the urgency of ratifying it, as Legarda sponsored the report in plenary. Legarda heads the foreign relations subcommittee that held hearings on the treaty creating what has been billed as the world’s largest free trade area.

According to Escudero, “all we[senators] can do” is to secure a firm assurance at every step from the Executive that, being the implementing arm, it will always make sure no Philippine sector is unduly harmed when the country starts complying with its treaty obligations.

Zubiri had indicated a timeline for the Senate vote to ratify the RCEP before the March 24 adjournment of Congress, noting in his speech that, by its failure so far to ratify, the Philippines is “the odd man out, the last man standing” among countries that earlier signed onto RCEP.

However, Escudero said, senators must be given the chance to thresh out all serious concerns raised about the treaty, with no less than the President’s sister, Sen. Imee Marcos, earlier asking aloud, why the chamber is being stampeded into rushing ratification on the ground that the Philippines is the only one that has not done so.

RCEP ensures investments, jobs

AT the Palace briefing, Balisacan said RCEP “must be ratified” since the trade deal will ensure the country is able to attract investors to ensure the economy’s recovery.

Balisacan said ratifying the RCEP will ensure that the country can compete with its neighbors in terms of attracting foreign investments.

He said the country and its neighbors are competing to attract the same investments. Signing on to the RCEP improves the country’s chances of seeing those investments come to the Philippines.

“It must be ratified. It must be ratified.

A lot of the future of this country, of our country, depends so much on our ability to attract investors, particularly foreign capital because domestic capital is not enough,” Balisacan said.

“Without those investments, massive investments, you can’t expect to generate highquality jobs—that’s plain and simple. We need a lot of investments,” he added.

Balisacan also said, given the limited fiscal space of the national government, the only way the country can maintain its growth is to get more investments.

“The only way we can grow and maintain our growth at the rate we have experienced last year is to get investments, players that can build infrastructure for us, build plans and equipment for us so that jobs can be created,” he stressed.

Balisacan also reiterated his stand that the RCEP will not have a negative impact on the agriculture sector. He pointed out that all the challenges in the agriculture sector stemmed from “past neglects of the sector.”

Earlier, Neda said that 2021 trade data from the International Trade Center showed under RCEP, only 15 agricultural commodity groups corresponding to 33 tariff lines will have lower tariff rates compared to some ASEAN+1 FTAs.

This is equivalent to only 1.9 percent of the total 1,718 agricultural lines and only 0.8 percent of the total agricultural imports. Of these 33 tariff lines, 17 are raw materials, 8 are intermediate products, while only 8 are final goods.

The remaining agricultural tariff lines will have equal or higher rates compared to other ASEAN+1 FTAs, or are excluded from import tariff concessions under the RCEP.

“The very low productivity of agriculture has nothing to do with RCEP. In fact, my view is that by adapting RCEP, we are ratifying RCEP, we’ll be even more forced to pay attention to agriculture because only then can you fully maximize the benefits that RCEP can give to us,” Balisacan said.

25 bps. . .

Continued from A1 tax cut and higher OFW remittances, especially in pesos, due to expected peso weakening, should provide additional boost to those drivers,” the think tank said.

Other economic indicators such as imports are expected to ease in the first quarter while exports could fall behind due to the recession. This, however, will keep the country’s trade deficits above $4 billion per month.

The peso is expected to depreciate as the US Federal Reserve is seen to hike policy rates more aggressively to address high inflation.

IMF: Growth outlook brighter

MEANWHILE , the growth outlook across Asian economies, including the Philippines, is expected to be brighter this year, according to the International Monetary Fund (IMF).

IMF’s Krishna Srinivasan, Thomas Helbling and Shanaka J. Peiris said global financial conditions have eased, high food and oil prices are easing, and China’s economy is rebounding.

The region’s emerging and developing economies are seen to grow 5.3 percent this year and drive the dynamism in the region. These economies, the IMF added, are hitting their stride as pandemic supply-chain disruptions fade and the service sector booms. “China and India alone are expected to contribute more than half of global growth this year, with the rest of Asia contributing an additional quarter. Cambodia, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam are all back to their robust pre-pandemic growth,” the IMF said.

The IMF sees the growth of the Philippine economy to average five percent this year before increasing to 6 percent next year. The expected growth for emerging market and developing economies is 5.3 percent in 2023 and 5.2 percent in 2024.

The IMF was also optimistic that inflation is easing and will soon go back to central bank targets. Currently, however, core inflation is “proving more persistent” than headline inflation.

Core inflation, which excludes certain highly volatile food and non-food items, posted a 7.4 percent growth. The Philippine Statistics Authority (PSA) said this inflation rate was the highest since April 1999 when inflation reached 7.6 percent.

“Central banks in Asia have been hiking interest rates as they tackle above-target inflation. These factors have helped Asian currencies rebound, with most erasing about half of last year’s losses, which has eased pressure on domestic prices,” the IMF said.

However, IMF said that for the long-term, there are challenges. Most notable are the downgrade in the medium-term growth prospects for China and the fiscal deficits incurred by countries during the pandemic.

IMF said these deficits were incurred due to high public debt burdens. The authors also said these make Asian countries vulnerable to risks such as significant bank exposure to real estate downturns. Cai U. Ordinario

NIC. . .

Continued from A1 a project of Department of Science and Technology (DOST) Region XI.

This was followed by four projects that received P7.5 million each. These include the Farmers Information and Technology Service Center (FITS) Innovation Program of the Provincial Government of Camiguin and the Information System on Transport Operation in Puerto Princesa (ISTOPP) of the City Government of Puerto Princesa.

The list of projects include the Building Roadmaps for Resilient Philippine Creative Cities of the Department of Trade and Industry (DTI) Competitiveness and Innovation Group; and the Exploring and Mainstreaming the Use of Natural Water Treatment Methods to Improve Drinking Water Quality of the Department of Interior and Local Government Central Office.

Other projects that received over P7 million in funding are the Cavite Product Innovation Program for MSMEs of the Provincial Government of Cavite, which received P7.49 million, and the i-LINK: Integration of Localized Maritime Information Systems for a Comprehensive Nautical Knowledge Base of the University of the Philippines Diliman, P7.45 million.

The list includes the Naga City Startup Ecosystem Development Program of the Naga City Startup Ecosystem Development Program which received P7.45 million and the BARACO-Batangas Animal Movement Reporting Approach to Control Diseases of the Provincial Government of Batangas, P7.05 million.

Projects that received over P6 million were the Enhancing the Capacity of the Renewable and Sustainable Energy Technologies (ReSET) Center using Local Innovation for Smarter and More Resilient Community-based Renewable Energy Microgrids of DOST Region XI worth P6.76 million and the Pilot Testing and Commercialization of Micro Impeller Rice Mill of the Department of Agriculture (DA) Philippine Center for Postharvest Development and Mechanization with P6.03 million.

P rojects that received over P5 million were the Vizcaya Optimization of Incubation Centers for Economic Sustainability (VOICES) of the Provincial Government of Nueva Vizcaya with P5.575 million; and the Water Collection System with Treatment Facility at Brgy. Yabawon and Tan-Ag of the Municipality of Banton, Romblon with P5.73 million.

Projects with funding of below P5 million were the Establishment and Operationalization of Ilocos Norte MSME Incubation Center (IN-MIC) of the Provincial Government of Ilocos Norte with P4.28 million; Implementation of Innovation, Science and Technology for Accelerating Regional Technology-based Development (iSTART) Program with Indoor Farming Technology of DOST Region VIII, P3.049 million; and Project SciNing-Cultivating Ingenuity, Creativity and Awareness through Experiential Learning, Innovations and Promotions of the DOST Technology Application and Promotions Institute, P3.8 million.

Other projects are the Industrial Designing and Finalization of Production Drawings for the Commercialization of BUHAWI of the DOST Metals Industry R&D Center, P2.289 million; Establishment of PCHRD Health Research and Technology Innovation Hubs (HeaRTNovation Hubs): Expanding the TEKI in Health Program among Health Institutions of the DOST Philippine Council for Health Research and Development, P2.62 million; and the Improvement of the Single Row Push-type Plot Seeder with Mechatronic Seed Feeding Device for Corn (Zea Mays L.) Field Breeding Experiment of the South Cotabato State College which received the smallest grant of P281,650. “Majority of [these] sought to address the pre-commercialization and commercialization requirements of innovative products or services, the enhancement of innovation facilities and services, and the conduct of capacity-building activities,” Balisacan said.

However, Neda said six of these projects did not proceed: BARACO or the Batangas Animal Movement Reporting Approach to Control Diseases; the Pilot Testing and Commercialization of Micro Impeller Rice Mill; and the Building Roadmaps for Resilient Philippine Creative Cities.

O ther projects that did not proceed are the Exploring and Mainstreaming the Use of Natural Water Treatment Methods to Improve Drinking Water Quality; Cavite Product Innovation Program for MSMEs; and i-LINK: Integration of Localized Maritime Information Systems for a Comprehensive Nautical Knowledge Base.

On Tuesday, Balisacan also said the Council has established 10 National Innovation Priority Areas under its Framework of the National Innovation Agenda for 2032. These areas are Learning and Education, Health, Food and Agriculture, Finance, Trade, Transportation and Logistics, as well as Public Administration, Security and Defense, Energy, and Blue Economy and Water. Cai U. Ordinario