BALANCE OF PAYMENTS LOGS LOWER DEFICIT

The country’s balance of payments (BOP) position posted a lower deficit in June this year, according to the Bangko Sentral ng Pilipinas (BSP) on July 19.

Data released by the BSP on Friday showed that the BOP in June was a deficit of $155 million, down from the $606 million deficit in June 2023.

“The BOP deficit in June 2024 reflected outflows arising mainly from the National Government’s (NG) payments of its foreign currency debt obligations,” the BSP said.
The BOP is a summary of the economic transactions of a country with the rest of the world for a specific period.

For the first half of the year, the BSP said preliminary data showed that the BOP position showed a surplus of $1.4 billion, which is lower compared to the $2.3 billion surplus recorded in the same period last year.

UNILEVER SEES INCREASED SALES WITH LOWER INFLATION

Multinational fast-moving consumer goods (FMCG) company Unilever is seen benefiting from the easing inflation in the country in the next months, which would boost spending on consumer products.

Unilever Philippines Nutrition Business lead Marinelle Villanueva said on July 18 that the sales performance of the company’s food unit is expected to improve in the second half of the year as inflation rate eases, giving consumers more room to spend.

She said that Unilever’s Nutrition business saw a slow start in 2024 due to the elevated inflation rates in the first quarter of the year.

“We have seen people going back to adding more and different formats to the basket. (In) Quarter 1, we saw them making adjustments, they may choose a more affordable format. But we’ve seen pick up in Quarter 2,” Villanueva added.

NEW FOREIGN EXCHANGE GUIDELINES APPROVED

The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) has approved the latest amendments to foreign exchange (FX) regulations in the country, as detailed in BSP Memorandum Circular 1197 issued on July 12 this year.

The BSP said on July 17 that major amendments include the revised monetary penalties for reporting violations based on reporting entities and classification of report.

Also, it defined reports that are non-compliant with the BSP reporting standards, such as erroneous, delayed, and unsubmitted under the Manual of Regulations on Foreign Exchange Transactions.

The amendments also set a maximum monetary penalty of P1 million for each transactional violation or P100,000 per calendar day for violations of a continuing nature.

NGCP SETS COMPLETION OF BOHOL-CEBU LINE

The National Grid Corporation of the Philippines (NGCP) is aiming to complete the Cebu-Bohol 230 kilovolt (kV) line this December, improving the power situation in Bohol.

On July 16, the NGCP energized the Dumanjug-Corella 230 kV Line 1 and Dumanjug 70 megavolt amperes reactive (MVAR) that will deliver power to Bohol from Cebu.

The newly energized lines are part of the Cebu-Bohol 230 kV Interconnection Project, with a capacity of 600 megawatts, allowing direct access to power from Cebu and complementing the existing Leyte-Bohol submarine cable.

Energy Secretary Raphael Lotilla said the project is vital to Bohol as the province has a growing need for electricity driven by the tourism sector.

“Ensuring sufficient transmission capacity is crucial for the country’s economic development, as it promotes a reliable power supply that supports economic growth and investment,” Lotilla said in a statement.

ONLINE SELLERS NOW SUBJECT TO WITHHOLDING TAX

The Bureau of Internal Revenue (BIR) on July 16 announced that electronic marketplace operators should start imposing withholding tax on sellers or merchants.

“Electronic marketplace operators will begin imposing withholding tax against their sellers/merchants starting July 15, 2024. We have already extended this by 90 days. No further extensions will be given,” BIR Commissioner Romeo Lumagui Jr. said in a news release.

To recall, the BIR issued Revenue Regulation 16-2023 in December last year requiring online merchants with earnings of more than P500,000 annually to be subjected to a one percent withholding tax.

The withholding tax will apply to half of the gross remittances by electronic marketplace operators and digital financial services providers of sellers or merchants for the goods or services sold through their platforms.

REMITTANCES FROM OVERSEAS FILIPINOS UP 3.7% IN MAY

Personal remittances from overseas Filipinos (OFs) increased by 3.7% percent in May this year, the Bangko Sentral ng Pilipinas (BSP) said, reaching $2.88 billion from the $2.78 billion in May 2023.

According to the BSP on July 15, the increase was due to higher 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.

Meanwhile, cash remittances coursed through banks reached $2.58 billion in May 2024, or an increase of 3.6% from the $2.49 billion logged a year earlier.

“The expansion in cash remittances in May 2024 was due to growth in receipts from both land- and sea-based workers,” it said.

‘TATAK PINOY’ IMPORTANT FOR PH INDUSTRIALIZATION

Trade Secretary Alfredo Pascual said the “Tatak Pinoy” initiative is the cornerstone of the government’s industrialization strategy and export drive.

During a forum at Philippine International Convention Center in Pasay City on July 15, Pascual emphasized the role of the Tatak Pinoy law in boosting the country’s manufacturing and export performance.

“The Tatak Pinoy initiative is also crucial to President Ferdinand R. Marcos Jr.’s industrial policy, which seeks to propel Philippine enterprises toward producing diverse, sophisticated, high-quality products and services,” Pascual said.

“This strategic direction empowers us to confidently navigate industrialization, thereby increasing economic growth and fostering the creation of higher-paying jobs for Filipinos known for their exceptional craftsmanship,” he added.

(PHOTO FROM PNA)