GDP growth goals on track as inflation slows–Neda

By Cai U. Ordinario @caiordinario

THE national government remains on track to attain its GDP growth targets this year as inflation starts to slow, according to the National Economic and Development Authority (Neda).

RETIRED Justice Alex L. Quiroz, GCG chairperson (top, center) speaks at the Philippines Graphic’s second webinar, "The GCG in Action: Unleashing GCG's Potential for Positive Transformation," on Tuesday (July 25). Other speakers were: (Top row, from left) PhilHealth Acting VP for Corporate Affairs Group Rey T. Baleña, SSS Vice President for NCR North Division Fernan Nicolas; (Bottom row, from left) Hosts from the BusinessMirror and Philippines Graphic, Jasper Emmanuel Y. Arcalas and Trixzy Leigh C. Bonotan, GCG Commissioner Atty. Gideon D.V. Mortel, GSIS Acting EVP Atty. Jason Teng, and Atty. JB Jovy Bernabe, Acting Head and CEO of the Philippine Crop Insurance Corp. More stories on the GCG Forum in B3, Banking.

By Jasper Emmanuel Y. Arcalas @jearcalas

THE Governance Commission for GOCCs (GCG) on Tuesday asked President Marcos Jr. to issue an Executive Order (EO) that would strengthen its powers in disposing and liquidating assets of abolished government-owned and -controlled corporations.

T he GCG said it will submit a draft EO to Marcos Jr. that would institute a mechanism “to ensure effective and expeditious liquidation and winding down of abolished GOCCs.”

T he GCG disclosed that it is facing challenges in the disposal and liquidation of assets held by 31 abolished GOCCs. One of the problems it faces is the lack of personnel and the absence of a quorum in the governing boards of abolished GOCCs.

W ith an EO in place, the GCG said it will be able to expedite the liquidation and dissolution of the abolished GOCCs, raising at least P22 billion in revenues for the government.

By finally disposing of the assets of these abolished corporations, we will also free up fiscal space that the government could use for more important projects,” GCG Chairperson Alex L. Quiroz said.

We expect to generate at least an initial P22 billion for the sale of the assets of these corporations, some of which have been abolished for more or less 10 years now. This is also in line with President Marcos’ goal of streamlining the bureaucracy for greater efficiency,” he added. The GCG pointed out that the government is still spending money for asset preservation of the abolished GOCCs even if they have stopped operating for years already.

The Governance Commission remains steadfast in its mandate as the central advisory, oversight, and monitoring body for GOCCs, to institutionalize transparency, accountability, financial viability, and responsiveness in corporate governance by monitoring and evaluating the performance of GOCCs,” it said.

S ocioeconomic Planning Secretary Arsenio M. Balisacan said the economy needs to post an average growth of 5.9 percent in the next three quarters to attain the low-end of the government’s growth target this year.

T he Development Budget Coordination Committee (DBCC) has set a 6 to 7 percent GDP growth target this year and 6.5 to 8 percent between 2024 and 2028.

I’ll see when we get the numbers. I think one thing positive is inflation has been coming down, still a bit high, but the fact that it has been going down should have helped shape the expectation about the near future and that would inspire confidence in spending,” Balisacan told reporters on the sidelines of the Post-State of the Nation Address (SONA) Economic Briefing on Tuesday. For the second quarter, Balisacan said, the economy could post a growth of 6 percent, barring any external shocks. This expectation is in line with the government’s full-year targets.

T he primary growth driver for the second quarter, Balisacan said, would be consumer spending. But the main drag on growth could be exports because of the challenging global environment.

I think that hoping we don’t have any major shocks in the external markets, remember that Russia is again threatening to cut the exports of Ukraine. We are now seeing some uptrend in the Brent oil indices. But we hope these are just short-term things, in the meantime we can get our productive sectors responding to the opportunities,” Balisacan said. “We will probably see growth further moderate but not far enough, down enough to allow us to miss the target.”

O n Tuesday, Neda affirmed its commitment to sustain the country’s high growth momentum, improving labor market conditions, and ongoing downtrend of inflation, during the 2023 Post-SONA Philippine Economic Briefing.

Neda said through a whole-ofgovernment and whole-of-society approach, President Ferdinand R. Marcos Jr.’s Administration, in its first year in office, has made significant strides in leading the country to achieve a robust post-pandemic economic recovery with gross domestic product (GDP) growth averaging 7.6 percent in 2022 and 6.4 percent in the first quarter of 2023.

DOTr rushing infrastructure for transportation, to focus on public modes of mobility

By Lorenz S. Marasigan @lorenzmarasigan

THE Department of Transportation (DOTr) will focus on the development of public transportation and encouraging private vehicle owners to use it, echoing President Ferdinand Marcos Jr.’s statement on the promotion of interconnected physical connectivity across the country.

Transportation Secretary Jaime Bautista said he is speeding up the development of transportation infrastructure projects, which make up 83 percent of the administration’s Build Better More (BBM) Program.

He said the agency is accelerating rail, maritime, road, and aviation infrastructure projects that will bring socioeconomic benefits to Filipinos.

“ The department will speed up the momentum in completing more transport infrastructures and projects aimed at moving more people, products, and services and trigger economic growth,” Bautista said at the 2023 Post-State of the Nation Address (SONA ) Briefing Tuesday.

He listed some of the priority projects as the North-South Commuter Railway (NSCR) System, the Light Rail Transit (LRT) Line 1 Cavite Extension, the Metro Rail Transit (MRT) Lines 4 and 7, and the Metro Manila Subway.

A lso included in the list are public road transport projects such as the Cebu Bus Rapid Transit (CBRT) and Davao Public Transport Modernization Project (DPTMP), along with the Public Utility Vehicle Modernization Project (PUVMP), Active Transport, and Edsa Busway.

“ We are giving focus on public transport so that private car owners would prefer public transportation,” Bautista said.

To improve our economy’s competitiveness and signal our country’s openness to business, the government worked to create an investment-friendly policy environment,” Balisacan said.

T he Neda Secretary said this environment was supported by the issuance of the implementing rules and regulations (IRR) of the amended Public Service Act, the revised IRR of the BuildOperate-Transfer Law, and the amended Joint Venture Guidelines of Neda.

B alisacan said the government is working to create and promote an enabling policy and regulatory environment that shall be conducive to investment, innovation, and the creation of high-quality jobs. I n line with this objective, Neda, in turn, shall continue strengthening the public-private partnership (PPP) framework and facilitating the efficient evaluation of PPP proposals.

B alisacan emphasized that the agency remains committed to monitoring critical socioeconomic indicators and undertaking rigorous analyses for evidence-based policymaking as the government tackles emerging issues.

He highlighted the importance of the Philippine Development Plan (PDP) 2023-2028 in aligning all government efforts to achieve the country’s overall goals: reinvigorating job creation and accelerating poverty reduction.

T he PDP 2023-2028 is the country’s medium-term development blueprint, outlining the government’s priorities and strategies towards achieving high and inclusive growth.

I nterconnectivity, he noted, is “very important” and the agency is constantly studying how can commuters have access to interlinked modes of transportation to get them from point A to point B.

A side from mass transport infrastructure, the department is also putting a premium on airports such as the redevelopment of the Ninoy Aquino International Airport (Naia), the Clark International Airport, the New Manila International Airport, and the Sangley Point International Airport.

B autista added that 29 aviation infra projects were completed, including the Butuan Airport and CRK’s Passenger Terminal Buildings (PTBs), while 10 other regional airports will be developed.

DPWH’s commitment

MEANWHILE , the Department of Public Works and Highway (DPWH) also committed to speeding up infrastructure development, with Secretary Manuel Bonoan highlighting increased budget utilization and disbursement rate.

“ Recognizing the role of infrastructure development in the country’s economy, we will continue to hasten the rollout of high-impact projects,” he said.

Bonoan cited several projects and programs with different levels of implementation: the Philippine High Standard Highway Network Program, the Luzon Spine Expressway Network Program, the Metro Manila Logistics Improvement Program, and the InterIsland Linkage Bridge Program.

DFA won’t scrap FTF for Chinese visa applicants

THE Department of Foreign Affairs (DFA) stands pat on its policy requiring personal, face-to-face interviews with tourist visa applicants from China, in the interest of national security. It also tried to reassure the Department of Tourism (DOT) that it was rushing to roll out an electronic visa system “in 2023,” which will initially cover China and India. I n a letter to Tourism Secretary Christina Garcia Frasco dated June 23, 2023, a copy of which was obtained by the BusinessMirror, Foreign Affairs Secretary Enrique A. Manalo said, “The DFA reiterates its long-standing policy that personal appearance/face-to-face interviews for individual visa applications, including individual visa applications coursed through accredited travel agents, is an essential and crucial component in the visa application process to weed out illegitimate travelers/ tourists, thus promoting national security. This works in combination with documents assessment and security clearances (used only for CH nationals applying for multiple-entry visas; single entry visas do not require security clearance).”

Illegal Chinese workers HE stressed, said requirement “may be waived for meritorious cases only and upon endorsement of the Office of Consular Affairs (OCA) and Visa Officers at Post with approval of the Undersecretary for Civilian Security and Consular Affairs (UCSCA).”