REMITTANCES FROM OVERSEAS FILIPINOS INCREASE BY 2.55% IN JUNE

Personal remittances from overseas Filipinos (OF) went up by 2.55% to $3.21 billion in June this year, the Bangko Sentral ng Pilipinas (BSP) said on August 16.

BSP data showed that personal remittances reached $3.21 billion in June from $3.13 billion in the same month last year.

The BSP said the increase was due to higher remittances sent by 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.

Personal remittances cover cash sent through banks and informal channels and also remittances in kind.

“The expansion in cash remittances in June 2024 was due to the growth in receipts from land- and sea-based workers,” the BSP said.

For the January to June period, remittances from OFs increased by 2.9 percent to $18.10 billion from $17.59 billion.

FOREIGN INVESTMENT PLEDGES UP 300% IN SECOND QUARTER

Total foreign investment (FI) pledges approved in the second quarter went up by 300% to P189.50 billion from P59.09 billion year-on-year.

Philippine Statistics Authority (PSA) released on August 15 showed the investment pledges were from six investment promotion agencies – the Board of Investments, BOI-Bangsamoro Autonomous Region in Muslim Mindanao, Clark Development Corp., Philippine Economic Zone Authority, Subic Bay Metropolitan Authority, and Zamboanga City Special Economic Zone Authority.

According to the PSA, Switzerland was the biggest source of investment pledges amounting to P172.04 billion or about 90.8% of the total pledges during the period.

“The electricity, gas, steam, and air conditioning supply industry received the largest amount of approved FI at P172.74 billion or 91.2% of the total approved FI,” the PSA said.

This was followed by manufacturing with P12.39 billion, and administrative and support service activities with P2.84 billion.

PH GETS CREDIT RATING UPGRADE

Japan’s Rating and Investment Information, Inc. (R&I) has upgraded its credit rating for the Philippines to A- with stable outlook.

R&I cited the country’s macroeconomic stability, high economic growth path, and improvement in fiscal balance as factors behind the credit rating upgrade. The credit rating agency said on August 13 that said the country’s credit rating was changed from BBB+ with a positive outlook to A- with stable outlook.

The Philippines has so far achieved two A- ratings with the first given by Japan Credit Rating Agency (JCR) in 2020.

“The Philippine economy will likely see stable growth and continuous improvement in the level of national income against the backdrop of active public and private sector investments, development of domestic business sectors such as business process outsourcing (BPO), and favorable demographics, among other elements,” R&I said.

BOI TARGETS P1-TRILLION INVESTMENTS APPROVALS BY 2025

The Board of Investments (BOI) has set a target of P1 trillion worth of registered projects in 2025, which will result in three consecutive years that the agency got investment approvals at the trillion-peso level.

However, under the National Expenditure Program (NEP) 2025, the BOI is looking into lower investment pledges next year from its 2024 NEP target of P1.151 trillion.

DTI Undersecretary and BOI Managing Head Ceferino Rodolfo said there are some constraints that must be addressed so the Philippines can continue attracting investments, especially from foreign sources.

He said some of the challenges include include ease of doing business, power rates, talent development, and incentives.

Rodolfo said one of the initiatives of the government to ease doing business in the country is the establishment of green lanes to expedite the issuance of permits and licenses for strategic projects.

“Just to give you an example, Vietnam in March of this year has issued a directive that for strategic projects, for priority projects, they are giving free lease of land plus reimbursement for land clearance expenses of those developing their industrial estate,” he said.

OCEANAGOLD SEES BETTERT GOLD, COPPER OUTPUT

Listed mining firm OceanaGold Philippines Inc. is confident on getting a better gold and copper output in the second half of the current year, according to parent firm on August 13.

“So we see quarter three will be stronger than quarter two and quarter four will be stronger than quarter three,” OceanaGold Corporation chief operating officer for Asia-Pacific Peter Sharpe said in a briefing in Makati City.

OceanaGold Philippines Inc. currently operates the Didipio gold-copper mine in Nueva Vizcaya and reported that gold production reached 49.2 thousand ounces in the first half of the year. On the other hand, copper production reached 5.8 thousand tons.

Both gold and copper production declined from last year’s 65.2 thousand ounces and 6.9 thousand tons due to lower production in the second quarter of the year.

Sharpe said production decline was caused by the unplanned downtime in the company’s processing plant.

“What that meant was that we were not able to mill as much ore as we originally planned. They were one-off events and they’ve effectively been addressed,” he said.

BSP ORDERS FINANCIAL INSTITUTIONS TO ACCEPT DIGITAL NATIONAL ID

The Bangko Sentral ng Pilipinas (BSP) has directed its financial institutions under its direct supervision to accept all formats of the national identification (ID), including the digital version.

BSP Memorandum 2024-026, dated Aug. 9 and posted on the central bank’s website on August 12 stated that  financial institutions under the supervision of the BSP accept all formats of the national ID as an official government-issued identification document and a valid and primary proof of identity, subject to authentication.

Launched on June 10, the digital national ID is the official digital version that can be easily accessible through computers or smartphones with an internet connection.

It contains the owner’s national ID card number, digital ID number and basic demographic information, such as the front-facing photograph, full name, date of birth, present address, gender, blood type, marital status, and the Quick Response (QR) code.

DOF WANTS TRANSPARENCY ODA PROJECTS

The Department of Finance (DOF) recently met with various government agencies to discuss ways to promote transparency in the processes involving Official Development Assistance (ODA) and monitor the impact of its projects funded by ODA.

In a statement on August 12, the DOF said during a meeting on July 22, it met with representatives of the National Economic and Development Authority (NEDA), Department of Foreign Affairs, the Department of Budget and Management, and the Office of the President-Office of the Deputy Executive Secretary for General Administration to discuss the launching of an ODA microsite to serve as a repository of ODA projects, detailing their corresponding project descriptions, progress reports, and success stories.

The DOF said the agencies also discussed how to streamline, codify, and automate procedures for the negotiation and implementation of ODAs contracted from bilateral or multilateral development partners.

“This also includes optimizing and expediting ODA implementation schedules across relevant government offices,” it said.

ODAs are loans or grants that are geared toward promoting sustainable social and economic development for the benefit of the people.

(Photo from PNA)