PH SEEKING MORE JAPANESE INVESTMENTS

The government is is urging Japanese investors to invest in the Philippines and assured them that ongoing amendments to the country’s fiscal incentives system will address their key concerns.

“To begin with, the Philippines is booming and has all the makings of a tiger economy. This makes us the most strategic safe haven for Japanese investors. We are an economic superstar in ASEAN (Association of Southeast Asian Nations), with GDP (gross domestic product) growth expanding among the fastest at 6.2 percent since President Marcos, Jr. took office,” said Finance Secretary Ralph Recto in his speech at the Philippine Economic Briefing (PEB) in Tokyo on June 21.

Recto said that the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) enhances both fiscal and non-fiscal incentives while addressing key concerns of Japanese investors.

The CREATE MORE is an improved version of the CREATE law that expands and refines fiscal and non-fiscal incentives, and clarifies the rules and policies on the grant and administration of incentives.

P2.31 TRILLION IN PROJECTS GET GREEN LANE TREATMENT

The Board of Investments (BOI) One-Stop Action Center for Strategic Investments (OSAC-SI) has issued green lane certificates to a total of 74 projects with an aggregate capital amounting of P2.321 trillion as of June 20.

BOI data showed that the majority, or 65 of these projects, are in renewable energy (RE) with investments totaling P1.95 trillion.

Five projects with green lane certification are in digital infrastructure with investments of P338.23 billion, two investment activities for food security worth P3.4 billion, and  two manufacturing projects amounting to P29.61 billion.

This means that for nearly six months of the year, the OSAC-SI has certified 136 percent or 52 more projects for green Lane.

“For the month of June, a total of P265.465 billion worth of strategic investments was certified, the highest of which is a P183.205 billion solar power project in Luzon,” the OSAC-SI said.

The Green Lane fast tracks the processing of permits and licenses of strategic investments, or those with high economic impact, in concerned national government agencies and local government units.

BALANCE OF PAYMENTS TURNS POSITIVE IN MAY

The country’s balance of payments (BOP) posted a surplus in May this year, which is a turnaround from the deficit recorded in the same month last year.

Bangko Sentral ng Pilipinas (BSP) data released on June 19 showed that the BOP position in May recorded a surplus of $2 billion, a turnaround from the $439-million deficit in May 2023.

The BSP said the surplus during the month reflected inflows from the national government’s (NG) net foreign currency deposits with the BSP, which include proceeds from its issuance of Philippine global bonds, and net income from the BSP’s investments abroad.

The BOP is a summary of the economic transactions of a country with the rest of the world for a specific period.

PCCI ASKS GOVT TO CONSIDER POWER SUBSIDY

The Philippine Chamber of Commerce and Industry (PCCI) is urging the government to consider providing power subsidy to attract investments into the country.

During its Power Summit 2024 in Makati on June 19, PCCI president Enunina Mangio said reliable energy supply and affordable power costs will help attract more foreign investments into the country.

“As we all know, the Philippines is at a critical juncture in its energy journey. The imminent depletion of the Malampaya natural gas fields, coupled with our growing population and economy and the transition away from coal, presents formidable challenges,” Mangio said.
“Our nation, which already contends with some of the highest electricity rates in Asia, must navigate these waters with precision and foresight,” she added.

PCCI chairman and director for energy and power George Barcelon said the Philippines has the highest electricity rate compared to neighboring countries.

FINTECH FIRM READY TO PROVIDE MORE LOANS

Financial technology firm Salmon Group Ltd. is seeking a significant increase in its loan portfolio in the next three to five years.

“What I can share is where we want to be in three to five years. We want to have a $2 billion loan portfolio. So that’s like P100 billion loan portfolio. And then a $200 million annual net income from the Philippines alone or P10 billion in net income,” Rural Bank of Sta. Rosa’s chairman and Salmon’s co-founder Raffy Montemayor said in a briefing at the Century Park Hotel in Manila on June 18.

In January this year, the fintech firm acquired a 59.7-percent controlling stake in the Rural Bank of Sta. Rosa (Laguna) Inc.

“We closed the sale in January this year and the past few months, we’ve been integrating the bank into our operations,” Montemayor said.

SSS PLANNING TO ENHANCE PENSION BOOSTER PROGRAM

The Social Security System (SSS) is planning to enhance the MySSS Pension Booster to allow retirees to avail of the program.

“Actually, we’re trying to introduce it because there are clamors that even pensioners still want it because they say they can still pay and then it’s also part of their estate planning.They can also leave it to their families later on because they have money, and they also want it,” SSS Vice President for Benefits Administration Division Joy Villacorta said during the Bagong Pilipinas Ngayon briefing on June 18.

The MySSS Pension Booster is a retirement savings program composed of both mandatory and voluntary schemes, and serves as an additional benefit to the monthly pension from the retirement benefit under the regular SSS program.

TOURISM’S CONTRIBUTION TO GDP REACHES 8%

The contribution of the tourism sector to the country’s overall economy reached more than 8 percent last year, the Philippine Statistics Authority (PSA) said.

PSA data released on June 18 showed that based on the Philippine Tourism Satellite Account, the share of Tourism Direct Gross Value Added (TDGVA) to the gross domestic product (GDP) was estimated at 8.6 percent in 2023.

The TDGVA during the period amounted to P2.09 trillion, higher by 47.9 percent than the P1.41 trillion in 2022.

“This is the highest growth of tourism since the start of the data compilation in the year 2000,” the PSA said.

According to the PSA, among the forms of tourism expenditures, inbound tourism expenditure posted the highest growth of 87.7 percent, amounting to P697.46 billion.

REMITTANCES FROM OVERSEAS FILIPINO UP 3.1% IN APRIL

Personal remittances of overseas Filipinos (OFs) increased by 3.1 percent to 2.86 billion in April this year from the $2.77 billion of the same month last year.

The Bangko Sentral ng Pilipinas (BSP) said on June 17 that personal remittances from OFs cover cash sent through banks and informal channels and also remittances in kind.
“The increase in personal remittances in April 2024 was due to remittances from land-based workers with work contracts of one year or more and sea- and land-based workers with work contracts of less than one year,” the central bank said.

Of the personal remittances from OFs, cash remittances coursed through banks reached $2.56 billion up from the $2.48 billion recorded a year ago.

(PHOTO FROM PNA BY OSWALD P. ALFILER)