The PH world rank in financial promo

Philippine ranks 2nd in Asia, 8th worldwide in financial inclusion promotion

Ted Cordero, GMA News |18 December 2020

The Philippines remains among the top leaders in financial inclusion, according to the 2020 Global Microscope on Financial Inclusion of the Economist Intelligence Unit (EIU), the research arm of The Economist Group.

The country ranks second in Asia, next to India; and eight worldwide, tied with Brazil, in the EIU study, which assessed the financial inclusion environment in 55 countries.

The EIU study rated countries across five dimensions, namely Government and Policy; Stability and Integrity; Products and Outlets; Consumer Protection; and Infrastructure.

Together with Thailand and Russia, the Philippines posted the highest improvement in Asia and Eastern Europe, in view of the government’s push to promote digital channels as part of its responses to the COVID-19 pandemic, according to the study.

The Philippines got a perfect score of 100 points in Products and Outlets dimension, which covers Bangko Sentral ng Pilipinas (BSP) regulations on e-money, simplified accounts like the Basic Deposit Account (BDA), and financial outlets such as cash agents.

Focusing on the role of financial inclusion in the COVID-19 response, the EIU study recognized the initiatives of the Philippines to mitigate the adverse economic impact of the pandemic.

The report cited the regulatory relief measures of the BSP to ease liquidity constraints in the financial system, restore business confidence, and sustain the flow of credit amid the unprecedented health crisis.

These include the temporary relaxation of compliance to reporting requirements, easier access to rediscounting facility, and waiver of licensing fees and charges for financial institutions setting up their electronic payment and financial services.

It also cited the initiative of financial service providers to suspend fees for electronic fund transfers during the community quarantine period.

In addition, the EIU report highlighted measures to promote MSME financing such as allowing banks to include loans granted to MSMEs as alternative compliance with reserve requirements, reducing the credit risk weight of MSME loans that are current in status to 50% from 75%, and reducing the minimum liquidity ratio (MLR) for stand-alone thrift banks, rural banks and cooperative banks to 16% from 20% until end-December 2020.

While the Philippines scored lowest in the Infrastructure dimension with 69 points, there is noted improvement from last year’s level owing to ongoing initiatives on digital connectivity, digital identification, and digital payments infrastructure.

The report emphasized the importance of digital infrastructure that includes access to identification, mobile phones, and financial accounts to facilitate efficient delivery of cash assistance to vulnerable segments.

It also noted that better data integration is needed for proper targeting of cash aid program beneficiaries.

The Global Microscope is an annual cross-country assessment of the enabling environment for financial inclusion. Since 2009, the Philippines consistently belongs to the top-ranked countries in terms of having a supportive framework for inclusive finance.

Latin American countries namely Colombia, Peru, Uruguay, Argentina, and Mexico dominated the top five spots of 2020 Global Microscope. —KBK, GMA News

...the 2nd ASEAN's fastest growing market for motor vehicle

Philippines 2nd fastest-growing market for motor vehicles in South East Asia


Louella Desiderio
Philippine Star
10 February 2020

MANILA, Philippines — The Philippines was the second fastest-growing motor vehicle assembler in Southeast Asia last year, registering a 19 percent growth in output, according to the Association of Southeast Asian Nations Automotive Federation (AAF).

Data from AAF showed the Philippines assembled 95,094 motor vehicles last year, up from just 79,763 units in 2018.

Data from AAF showed the Philippines assembled 95,094 motor vehicles last year, up from just 79,763 units in 2018.

Posting the fastest growth in motor vehicle output last year was Myanmar, which assembled 15,496 units, 26 percent higher than the 12,292 units in 2018.

Apart from Myanmar and the Philippines, the only country in the region with a higher motor vehicle output was Malaysia which produced 571,632 units last year, up 1.2 percent from the 564,971 units in 2018.

All other countries with motor vehicle assembly operations in the region registered declines.

Thailand, which serves as the region’s automotive hub, assembled 2.01 million units last year, seven percent lower than the 2.17 million units in 2018.

Indonesia’s motor vehicle output decreased by 4.2 percent to 1.29 million units last year from 1.34 million units in 2018, while Vietnam’s output went down by 12 percent to 176,203 units last year from 200,436 units in 2018.

Total motor vehicle output in Southeast Asia decreased by 4.8 percent to 4.16 million units last year from 4.37 million units in 2018.

In terms of motor vehicle sales, the Philippines was among those with higher sales last year.

AAF data showed the Philippines sold 369,941 units last year, 3.5 percent higher than the 357,410 units in 2018.

Other countries in the region with higher sales last year are Myanmar with a 25 percent growth in sales to 21,916 units, Vietnam with an 11.7 percent increase to 322,322 units, Brunei with a six percent uptick to 11,909 units, and Malaysia with one percent growth to 604,287 units.

Posting lower sales last year, meanwhile, are Indonesia with a 10.5 percent drop to 1.03 million units, Singapore with a five percent decrease to 90,429 units, and Thailand down 3.3 percent to 1.01 million units.

Total motor vehicle sales in the region reached 3.46 million units last year, 2.9 percent lower than the 3.56 million units sold in 2018.

Recently, the Department of Trade and Industry (DTI) launched a preliminary probe on a petition filed by workers group Philippine Metalworkers’ Alliance (PMA) to impose safeguard measure or duty on vehicles, a development which may affect both the production and sales performance of automotive firms in the country.

PMA filed the petition as increased vehicle imports are seen to pose threat to local car assembly, auto parts manufacturers, as well as employment in the sector.

A safeguard duty may be imposed by the government when a surge in imports of a certain product causes injury to local players.

...the PH world class gateway

Philippines prepares for world-class airport

Ai Ballesteros
ASEAN Economist
30 November 2019

The Philippines is set to get its own world-class gateway after the National Economic and Development Authority (NEDA) on Friday cleared the consortium’s proposal to revamp the Ninoy Aquino International Airport (NAIA).

The NEDA’s green light was the last approval that needed to be obtained by the consortium, after which it will undergo a competitive bidding or Swiss challenge, where the government will invite more private companies to top the proposal.

The consortium is composed of Ayala Corp., Aboitiz Group’s Aboitiz InfraCapital Inc.,  Andrew Tan’s Alliance Global Group Inc., Lucio Tan-led Asia’s Emerging Dragon Corp., the Gotianuns’ Filinvest Development Corp., the Gokongwei Group’s JG Summit Holdings Inc. and Metro Pacific Investments Corp.

Should there be no bidder within the given time frame, the NAIA consortium will be paved the way for the construction so long as it secures the Department of Transportation’s notice to proceed. The consortium will be given a 15-year concession period.

“This will mainly for the enhancement of the passenger experience, improving the movement of people in the terminal buildings as well as the movement of planes,” NEDA chief Ernesto Pernia told the Philippine media.

In September this year, a high official from NEDA who declined to be named said Swiss challenge is likely to happen within the end of the year.

In July this year, NEDA returned the consortium’s offer to rehabilitate NAIA and required another round of revision.

The consortium was told to follow the operations and maintenance template of the Clark International Airport in Pampanga.

Prior to NEDA, the Department of Transportation already gave its go-signal saying the offer “was acceptable.”

The rehabilitation of NAIA was one of the Duterte administration’s priorities after suffering from worsening congestion in the past few years. It is servicing 40 percent more than its designed capacity.

Last year, listed construction firm Megawide Construction Corp. expressed its interest in participating in the Swiss challenge for NAIA rehabilitation.

Megawide, in partnership with Bangalore-based GMR, developed and currently operates the Mactan-Cebu International Airport.

...The Southeast Asian Game host (opening)

Philippines showcases cultural heritage to kick off 30th Sea Games

New Straits Times
30 November 2019


MANILA: The Philippines staged a spectacular opening ceremony for the 30th SEA Games at the world’s biggest indoor arena, the Philippine Arena, in Bulacan, near here, tonight.


In a departure from tradition, the opening ceremony was held in an indoor arena rather than a stadium.

Also, for the first time in the biennial Games’ 60-year history, the games cauldron was placed at a different location, at the New Clark City Athletics Stadium, some 90km from Bulacan, and the lighting of the cauldron was shown on screen at the 55,000 capacity arena.

The extravaganza started after Filipino singer Lani Misalucha sang the republic’s national anthem, which was followed by an extraordinary performance themed “The Roots of our Strength”, showcasing the culture and heritage of the nation.

The spectators were treated to a series of warrior dances from the Bagobo, the Kalinga, the Maguindanao, Islamic and the pre-Hispanic Visayans.

The later part of the ceremony was powered by modern and hip-hop performances led by local artistes Inigo Pascual, Robert Sena, Apl.de.Ap and KZ Tandingan, among others.

The contingents received loud cheers from the audience as they paraded into the arena in alphabetical order, starting with Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand, Timor Leste and Vietnam, before host nation the Philippines ended the march.

Led by flag-bearer and 2018 bowling world champion Rafiq Ismail, the Malaysian contingent were represented by a delegation of about 100, including chef de mission Datuk Megat Zulkarnain Omardin and his two deputies, Nurul Huda Abdullah and Ahmad Faedzal Md Ramli.


With the men dressed in white baju melayu and red samping with tengkolok, and the women in white baju kurung and selendang with Jalur Gemilang motif, and black shoes, the multi-racial Malaysian contingent, the hosts of the previous games, walked past the crowd proudly, symbolising the multiculturalism of the country.

World renowned Filipino boxers Manny Pacquiao and Nesthy Petecio were given the honour as the torchbearers before they jointly lit the cauldron to officially mark the beginning of the 30th SEA Games, after Philippine President Rodrigo Duterte had declared open the Games.

Themed ‘We Win As One’, the Games will run for 12 days until the closing ceremony at the New Clark City Athletics Stadium on Dec 11.

More than 8,000 athletes from the 10 ASEAN countries and Timor Leste will compete in 530 events in 56 sports at the three main clusters, namely Manila, Clark and Subic.

The Philippines have hosted the SEA Games three times before – in 1981, 1991 and 2005.

This year’s Games see the introduction of a few new sports such as arnis, jujitsu, kickboxing, underwater hockey and esports.

Defending champions Malaysia have sent a strong contingent of 773 athletes and 339 officials to participate in 52 sports, targeting 70 gold, 51 silver and 105 bronze medals, which is expected to place them fourth overall.– BERNAMA

...the PH economic gain with China

Philippines reaping economic benefits from harmonious ties with China: Finance Chief

Xinhuanet.com
25 November 2019

MANILA, Nov. 25 (Xinhua) -- Philippine Finance Secretary Carlos Dominguez has said that the 
Philippines is reaping the benefits from building a harmonious relationship with China, reiterating 
the Philippines' full support for China's Belt and Road Initiative (BRI).

In a finance forum held in Guangzhou, China over the weekend, Dominguez pointed out that as a 
result of this warming of relations between the two countries on President Rodrigo Duterte's 
watch, China has become the Philippines' biggest trading partner and one of the largest 
tourism markets.

Since 2016, he said, the Philippines' total trade with China increased at an average of 15 percent 
annually. Last year, the total trade with China reached 52 billion U.S. dollars, which was 15 
percent higher than the 2017 level.

Chinese tourist arrivals in the Philippines, meanwhile, grew at an average of 27 percent per 
year since the start of the Duterte administration, he added. "It reached 1.63 million arrivals in 
2018, or 23 percent higher than the visits recorded in 2017."

Moreover, he said the Philippines obtained the best terms - a very tight spread of 32 basis points 
over  the benchmark - for its maiden and subsequent "Panda" bond issuances in the Chinese 
market.

The China Lianhe Credit Rating also rated the Philippines' Panda bond issuances as Triple A, 
which is its highest rating, he said.

"The synergy created by closer Philippines-China economic cooperation is true for all the rest 
of the region. This is the reason we see even closer economic integration between China and
 the ASEAN economies," Dominguez said.

During the forum, Dominguez reiterated the Philippines' full support for China's Belt and Road 
Initiative (BRI), which, he said, will open the vast economic potentials of all countries in the region.

"Improved infrastructure will enhance trade among our economies. Enhanced trade will encourage 
more efficient investment flows. Improved connectivity will enhance the inclusiveness of our 
growth patterns. We have everything to gain from this."

Dominguez noted that the Philippines also has its version of the BRI dubbed the 
"Build, Build, Build" program, which involves 100 highly strategic infrastructure projects as 
well as thousands of infrastructure and logistics improvements all over the country.

This infrastructure modernization strategy, aimed at lowering the Philippines' poverty incidence 
from 27.6 percent in the first half of 2015 to just 14 percent by 2022, will lower the costs of 
moving people and goods, bring remote communities closer to the economic mainstream, and 
"create numerous  investment opportunities that will unleash the latent strengths of our economy," 
he said.

"We are relying on this program to induce internally generated growth that will enable us to 
expand despite a challenging global environment brought about by protectionist policies 
in the West," Dominguez said.

...the future of ASEAN

South Korea's Moon says the Philippines is 'future of Asean'


Pathricia Ann Roxas
Inquirer.net
25 November 2019

BUSAN, South Korea — South Korean President Moon Jae-in has described the Philippines as “the future of Asean” as President Rodrigo Duterte met him in a bilateral meeting here Monday.

“The Philippines is the future of Asean as it continues to achieve an impressive growth rate of 6 percent each year thanks to your outstanding leadership,” Moon said in his opening speech.

“Through our meeting today I hope to strengthen my friendship with you and extend our bilateral cooperation to contribute further to the development of Asean,” he added.

For his part, Duterte expressed gratitude to the Korean government for their 70 years of cooperation in various areas like trade, industry, agriculture, infrastructure, and technology.

Duterte said the two nations “took diverging paths and fortunes,” with South Korea rising “as one of Asia’s economic and technological powerhouse.”

“Ours faltered, but with perseverance, the Philippines has since recovered and is now an emerging economy,” Duterte said.

He further noted that South Korea was the Philippines’ 4th largest trading partner in 2018 as well as a major source of foreign and direct investments.

“I assure you that the Philippines will find common cause and purpose with the Republic of Korea towards enhancing our bilateral engagement and promoting peace and stability in your region,” Duterte promised.

This bilateral meeting is anticipated to result in the two leaders’ signing of agreements on education, tourism, social security, and fisheries.

Edited by KGA

...the top foreign investment destination

Philippines a top foreign investment destination  with 613% surge in approved investments

PR  Newswire Asia
22 November 2019

BOI Figures Show +600% Rise by September 2019 with South Korea Topping Foreign Investments from East Asia

MANILA, Philippines, Nov. 22, 2019 /PRNewswire/ -- New data has unveiled a surge in BOI approved foreign investments which are expected to flow into the Philippines over the next 2-3 years.

These initiatives have made the Philippines a top investment destination, largely attributable to its continuing digital transformation and combined information and communications technology (ICT) and infrastructure efforts.



Approved foreign investments by the end of September 2019 reached USD4.7 billion, a 613% rise from USD659 million in the same period in 2018, BOI figures show. Investment approvals as of September 2019 totaled USD15 billion, a 105% jump from USD7.31 billion in the same period of the previous year. 

The tourism sector also continues to rise with USD186.3 million worth of hotel and accommodation projects, while manufacturing is seeing consistent growth of USD1.24 billion of approvals, a 190% increase on last year. 

Trade and Industry Secretary and BOI chairman Ramon M. Lopez applauded the results, commenting: "This data shows that big-ticket projects are now rolling in, proving the strength and resilience of the Philippines economy in attracting foreign investors despite the global slowdown. 

"The results are a testament to the Philippines as a great place for foreign investment where business can thrive."

Explore investment opportunities in the Philippines

Investors can explore business opportunities in the Philippines at Invest ASEAN 2019 in Busan, South Korea on November 25-26 where the BOI will represent the country considered by the US News and World Report in 2018 as the best to invest in.

At this event, BOI will showcase opportunities in specific priority sectors: manufacturing, specifically electric vehicle and auto parts; infrastructure and construction; and tourism

"This growth, together with a suite of incentives such as tax holidays and exemptions from duties on imported spare parts makes the Philippines an enviable investment destination and one-stop-shop for business within Asia and beyond," added Lopez.