EFFORTS are being made to make the country more attractive to investors and address concerns over recent tax reforms and continued bureaucratic inefficiencies, the country's new economic czar said.   Frederic Go, chief of the just-minted Office of the Special Assistant for Investment and Economic Affairs, told a briefing on Wednesday that he was pushing various programs and reforms.  Sectors that the government wants to be made more attractive to investors include mining, electronics, agriculture and pharmaceuticals. ''For semiconductors and microelectronics, we are targeting to boost what we are already good at: more assembly, more testing and more packaging, and to grow the higher value-added product, which is design and perhaps a prototype of a wafer fab,'' he added.   Read more:

https://www.manilatimes.net/2024/01/25/business/top-business/luring-investors-a-priority-for-govt/1929598

ACEN Corp., the listed energy platform of the Ayala Group, has expanded its renewable power portfolio in the United States with the acquisition of a 38-megawatt (MW) wind project.

Through UPC Power Solutions, ACEN’s joint venture with PivotGen and UPC Solar & Wind Investments LLC, a purchase agreement with EDF Renewables North America has been completed involving the acquisition of the lessee interests in the 38-MW Chestnut Flats operating wind project located near Altoona in Pennsylvania.

ACEN said EDF Renewables would continue to provide asset management and operations and maintenance services for the wind project.

Read more:
https://www.philstar.com/business/2024/01/25/2328244/acen-expands-us-presence

MANILA, Philippines — The Philippines’ trade deficit is expected to widen further this year amid weaker exports and stronger imports, according to Dutch financial giant ING.

ING senior economist Nicholas Mapa said a bigger-than-expected drop in exports and surprise rise in capital imports have resulted in a deeper trade deficit for November last year.

“This trend should persist going into 2024, with exports expected to struggle amid still weak global demand for basic electronics components while imports could continue to grow,” he added.

Mapa said exports fell more than expected at 13.7 percent in November, with the important electronics sub-sector dropping by 24.7 percent on soft global demand for basic semiconductor components.

Read more:
https://www.philstar.com/business/2024/01/22/2327490/trade-gap-expected-widen-further

The Philippine Economic Zone Authority (PEZA) said it is working with registered business enterprises (RBEs) on how to cushion the possible effects of the closure and shutdown of the Red Sea to trade.

In a statement on January 19, PEZA director-general Tereso Panga said the shutdown will make shipping costs 15percent more expensive and add 10 days for the exchange of goods between Europe and Asia.

“It will definitely affect global trade, delaying production and deliveries of products and resources thereby increasing the cost of goods. The effect of which will be higher inflation in different parts of the world,” Panga said.

Panga said while the Philippines is yet to feel the effects, PEZA is   pro actively working together with other concerned agencies to de-risk global supply chains that may affect  its locators in particular and the whole economy in general.

Read more:
https://malaya.com.ph/news_business/peza-red-sea-closure-hikes-shipping-costs-by-15/

With the COVID-19 pandemic declared over, work-from-home (WFH) arrangements of registered business enterprises (RBEs) in economic zones should no longer get tax incentives under Republic Act (RA) No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law.

The Department of Justice (DOJ) rendered this legal opinion dated Jan. 3 following a request made by Presidential Management Staff (PMS) Undersecretary for Legal and Monitoring Rodolfo John Robert Pallatao IV.

Justice Secretary Jesus Crispin Remulla cited Section 309 of the CREATE Law, which said that a qualified registered project or activity under an Investment Promotion Agency administering an economic zone or freeport must conduct its businesses within their geographical boundaries.

Read more:
https://manilastandard.net/news/national/314409208/tax-breaks-to-end-for-firms-with-wfh-in-ecozones-doj.html

Despite a projected slowdown in demand from the commercial segment, the Manila Electric Co. (Meralco) still expects its energy sales to improve by 4.5 percent this year.

Meralco senior vice president and chief revenue officer Ferdinand Geluz said the power distributor’s projected growth in energy sales volume is about 4.5 percent for this year, the same as the expected sales growth of about 4.4 to 4.5 percent for 2023.

“For 2024, we are projecting about the same. About 4.5 percent,” Geluz said.

“We are really hoping that the construction industry could have some sort of rebound,” Geluz said.

Read more:
https://www.philstar.com/business/2024/01/22/2327488/meralco-expects-energy-sales-grow-year

LEGISLATORS must reinstate the 5% gross income tax (GIT) incentive in amendments to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, the chip industry said, noting that the option to pay tax on the basis of gross income will make the Philippines more competitive.

“We would still hope to see the reinstatement of the 5% GIT, at least until Philippine operating costs are comparable with Vietnam, Malaysia & other ASEAN (Association of Southeast Asian Nations) competitors for foreign direct investments,” Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) President Dan Lachica said in a Viber message.

“The 5% GIT was part of the original agreement when foreign investors set up their factories in the Philippines,” Mr. Lachica added.

The House committee on ways and means approved the CREATE MORE bill in November 2023. A copy of the committee report was sent to reporters on Thursday.

Read more:
https://www.bworldonline.com/economy/2024/01/21/570243/chip-industry-bats-for-create-amendment-reinstating-5-git/

Rooftop Solar is increasingly becoming a popular energy efficiency solution among many businesses – and for good reason.

Investing in Rooftop Solar packs a lot of benefits such as a potential to lower electricity bills by 10-15% depending on your business’ load profile, load consumption, and local electricity rates. Minimal care is also required, with preventive maintenance needed roughly twice a year. The rooftop solar technology is also getting better and more efficient, so the panels are more durable and last longer. The unit’s expected lifespan is over 25 years, so you’ll get your money’s worth.

First Gen, through Pi Energy, is a reliable energy partner through every step of the process because they can provide assessment of viability of Rooftop Solar for your business, construction of units, installation, and even maintenance of Rooftop Solar. They are a specialized one-stop energy solutions provider that can help you maximize the technology’s value for your business and also help you with needed requirements for its installation.

Read more:
https://www.bworldonline.com/spotlight/2023/12/23/565284/is-rooftop-solar-a-good-next-step-for-my-business-here-are-four-good-questions-to-ask/

MANILA, Philippines — Despite global economic challenges, the Philippine economy is expected to expand at a faster pace this year than in 2023, according to state think tank Philippine Institute for Development Studies (PIDS).

“GDP (gross domestic product) will likely grow between 5.5 to six percent in 2024,” PIDS research fellow Margarita Debuque-Gonzales along with research analysts Mark Gerald Ruiz and Ramona Maria Miral said in a study titled, “Macroeconomic Outlook of the Philippines in 2023-2024: Prospects and Perils.”

This year’s growth forecast is higher than the authors’ projected 5.2 percent growth in 2023.

Read more:
https://www.philstar.com/business/2024/01/17/2326268/philippines-grow-faster-pace-year-pids

House Speaker Ferdinand Martin Romualdez on Tuesday expressed intent to attract investors at the World Economic Forum (WEF) by leveraging the Senate’s move to ease the “restrictive” economic provisions of the 1987 Constitution.

This, amid opposition by some lawmakers and constitution framers on amending the Constitution.

Romualdez said he is optimistic that the Senate resolution to rewrite specific economic provisions in the Constitution would enhance the country’s appeal to investors.

“It would be a welcome development for our trade partners,” the Speaker, who is the head of the Philippine delegation to the 2024 WEF in Davos, said in a statement.

Read more:
https://newsinfo.inquirer.net/1890016/easing-charters-economic-provision-to-attract-investors-speaker

Honeywell and Analog Devices Inc. (ADI) have entered into a Memorandum of Understanding to explore the digitization of commercial buildings by upgrading to digital connectivity technologies without replacing existing wiring, which will help reduce cost, waste, and downtime. The strategic alliance, announced at the recent CES 2024 event in Las Vegas, would bring this new technology to building management systems for the first time.

Many of the commercial buildings in the United States are outdated and inefficient and, according to the U.S. Energy Information Administration (EIA), the majority of them were built before the year 2000. Additionally, organizations are relying on networking technology to transmit ever-greater volumes of data, causing a surge in demand for cloud storage and processing speed. Digitizing building management systems will allow managers to reduce energy consumption through real-time decisions, while it will upgrade a building’s network performance and security to current Internet-protocol networks without extensive costs and remodeling.

“For more than a decade, ADI and Honeywell have collaborated on driving the next waves of innovation,” said Martin Cotter, Senior Vice President, Industrial and Multi Markets and President of ADI EMEA region. “In this next phase of our work together, we are thrilled to see these ADI technologies move beyond factory automation and into Honeywell’s building management system to help customers reduce building energy consumption, which can save money, improve resiliency, and help meet emissions reductions goals.”

Read more:
https://www.eetasia.com/honeywell-and-analog-devices-partner-on-building-automation/

Seiko Epson Corp. said Monday all electricity used at it sites around the globe comes from renewable sources, making it the first in the domestic manufacturing industry to complete the transition to renewable electricity.

It said that by sourcing renewables to meet its demand, the group expects to reduce its annual carbon dioxide emissions by 400,000 tons.

Epson committed to becoming carbon negative and underground resource-free in its Environmental Vision 2050.

Read more:
https://manilastandard.net/business/314407469/epson-first-japanese-manufacturer-to-transition-to-100-re.html

THE country’s manufacturing output is expected to pick up in the next few months as the technology slump nears its end, according to Moody’s Analytics.

In its latest economic brief, Moody’s Analytics said factory production of the Philippines has already improved to 1.9 percent in November 2023.

Moody’s Analytics noted that in value terms, the country’s manufacturing output grew 2.2 percent. This is higher than the 1.1 percent growth posted in October 2022.

“Electrical equipment as well as coke and refined petroleum products led growth in value and volume terms,” Moody’s Analytics said.

Read more:
https://businessmirror.com.ph/2024/01/16/as-tech-slump-nears-end-factory-output-seen-rising/

MANILA, Philippines — Despite global economic challenges, the Philippine economy is expected to expand at a faster pace this year than in 2023, according to state think tank Philippine Institute for Development Studies (PIDS).

“GDP (gross domestic product) will likely grow between 5.5 to six percent in 2024,” PIDS research fellow Margarita Debuque-Gonzales along with research analysts Mark Gerald Ruiz and Ramona Maria Miral said in a study titled, “Macroeconomic Outlook of the Philippines in 2023-2024: Prospects and Perils.”

This year’s growth forecast is higher than the authors’ projected 5.2 percent growth in 2023.

Read more:
https://www.philstar.com/business/2024/01/17/2326268/philippines-grow-faster-pace-year-pids

PHILIPPINE President Ferdinand R. Marcos, Jr. should work on food security, boost the quality of education and healthcare while improving governance to attract foreign investments instead of pushing for changes to the 1987 Constitution, which is a distraction, economists and legal experts said.

Christian S. Monsod, who was also among the Charter’s framers, noted that the Philippine Development Plan for 2023 to 2028 didn’t even cite the need to amend the Charter to achieve the country’s economic goals and that Mr. Marcos has been able to secure investment pledges  — now worth over P700 billion — in his foreign trips without the condition from investors that the country needs to amend the Charter’s economic provisions.

Mr. Monsod, reacting to remarks that the Constitution “remains a hindrance” to FDIs, said the Charter never barred full foreign ownership in the manufacturing sector and noted that the domestic sector has not been a target of foreign investors due to issues not related to the constitution.

Read more:
https://www.bworldonline.com/top-stories/2024/01/17/569264/marcos-urged-to-harness-economic-reforms-potential-instead-of-cha-cha-push/

THE PHILIPPINE ECONOMY is expected to be the second fastest-growing economy in Southeast Asia in 2024, according to the Mastercard Economics Institute (MEI).
 
In its latest “Economic Outlook: Balancing Prices & Priorities” report, MEI gave a Philippine gross domestic product (GDP) growth forecast of 5.6% for 2024.
 
This would make the Philippines the second fastest-growing economy in Southeast Asia, just behind Vietnam which is projected to grow by 6.2%.
 
Read more:
https://www.bworldonline.com/top-stories/2023/12/13/563169/phl-economy-seen-to-grow-by-5-6-in-2024/

MANILA  -Any economic fallout from rising tensions between the Philippines and China would be “limited,” a London-based think tank said, adding that Manila is “well-placed” to benefit from the dramatic shift in global supply chains set off by growing rivalry between Beijing and Washington.

Tensions flared up at the disputed West Philippine Sea over the weekend after Manila and Beijing traded accusations when their vessels collided near a contested reef.

But Gareth Leather, senior Asia economist at Capital Economics, believes a deterioration of Manila-Beijing ties is unlikely to create a big economic problem because the Philippines is “not closely integrated into China’s economy.”

Read more:
https://business.inquirer.net/436852/economic-fallout-from-ph-china-tensions-limited-says-think-tank

The Philippine Ports Authority (PPA) has unveiled the tariff for Tier 1 ports under its terminal management policy.

Effective December 8, PPA Administrative Order (AO) No. 10-2023, issued on November 17, establishes base rates for cargo-handling and terminal operators securing contracts for Tier 1 ports under the Port Terminal Management Regulatory Framework (PTMRF).

The release aligns with the upcoming bidding for the management and operation of Iloilo Commercial Port Complex (ICPC), the first port subject to Tier 1 bidding.

Read more:
https://www.portcalls.com/ppa-unveils-tariffs-for-tier-1-ports/