Global foreign direct investment down 42% in 2020
January 25, 2021 12:00 am

Mainly driven by the economic fallout from the coronavirus pandemic, global foreign direct investment (FDI) in 2020 slipped by 42 percent year-on-year to USD859 billion, according to the UN’s trade and development body. Last year’s figure was down from USD1.5 trillion in 2019, more than 30 percent below the investment trough that followed the 2008-2009 global financial crisis, the UN Conference on Trade and Development said on Sunday. The largest decline in FDI was seen in developed countries, plummeting by 69 percent to USD229 billion during the same period. The US posted a 49-percent annual decrease in FDI to USD134 billion last year. The decline took place in wholesale trade, financial services and manufacturing. Noting that investment to Europe dried up, the report said FDI flows fell by two-thirds to minus USD4 billion in the continent. Although FDI collapsed in major European economies such as the UK –FDI fell to zero– last year, overall performance masks a few regional bright spots, it underlined. “Sweden, for example, saw flows double from USD12 billion to USD29 billion. FDI to Spain also rose 52 percent, thanks to several acquisitions, such as private equities from the United States Cinven, KKR and Providence acquiring 86 percent of Masmovil,” it added. Developing economies attracted 72 percent of global FDI with USD616 billion in 2020, the highest share on record, despite seeing 12-percent decrease year-on-year. “The fall was highly uneven across developing regions: -37 percent in Latin America and the Caribbean, -18 percent in Africa and -4 percent in developing countries in Asia,” it said. China was the world’s largest FDI recipient last year, with flows rising by 4 percent to USD163 billion, thanks to a return to positive GDP growth (+2.3 percent) and the government’s targeted investment facilitation program. Weak outlook expected in 2021 Despite projections for the global economy to recover in 2021, FDI flows are expected to remain weak due to uncertainty over Covid-19’s evolution and the global investment policy environment, it said. The report forecast that any increases in global FDI flows in 2021 would come not from new investment in productive assets but from cross-border mergers and acquisitions, especially in technology and health care. “India and Turkey are attracting record numbers of deals in IT consulting and digital sectors, including e-commerce platforms, data processing services and digital payments,” it said. Source: Philippines News agency
DSWD-12 allots P240-M for emergency aid
January 25, 2021 12:00 am

The Department of Social Welfare and Development (DSWD) in Region 12 (Soccsksargen) has increased its funding for emergency assistance this year to nearly PHP240 million to further expand its coverage. Cezario Joel Espejo, DSWD-Region 12 director, said Monday the move is aimed to cater to more people in need, especially those affected by the continuing coronavirus disease 2019 (Covid-19) pandemic. He said such allocation is three times higher than the program’s initial budget of PHP78 million last year. “The funding was already approved by our central office,” he told reporters. Dubbed as Assistance to Individuals in Crisis Situation (AICS), the agency released a total of PHP272.1 million in emergency assistance grants in 2020 and served around 1.1 million residents. AICS is a continuing emergency government initiative that serves as a social safety net or a stop-gap measure to support the recovery of individuals and families suffering from unexpected life events or crises. The beneficiaries are residents belonging to the informal sector and those classified as poor, marginalized, vulnerable, and disadvantaged. Nanig Sanoy, head of the DSWD-12’s crisis intervention unit, said qualified residents may avail of the AICS in the form of medical assistance, funeral support, and other related emergency grants. She said residents who lost their homes and were directly affected by calamities like fire incidents may qualify for its financial assistance. Nanig said the increase in this year’s allocation was intended to help cover the medical needs of residents affected by Covid-19. “Due to the Covid-19 pandemic, many of our residents needed medical support so we sought additional funding for that,” she said. Espejo assured that necessary measures are in place to ensure that only qualified individuals and households or those really in need will be covered by the assistance program. He said the prospective beneficiaries will undergo a stringent evaluation process in coordination with the local government units and concerned stakeholders. “As what we have been telling before, there will be no room for corruption inside the agency,” he added. Source: Philippines News agency
Formal request needed before ruling on UP-DND accord: Guevarra
January 25, 2021 12:00 am

Department of Justice (DOJ) Secretary Menardo Guevarra on Monday said the department will await a formal request for adjudication if any is forthcoming from any of the concerned parties before it may rule on the contentious abrogation of a 31-year agreement between the University of the Philippines and the Department of National Defense (DND). “Considering that there is an apparent dispute between the state university and the DND with respect to the validity of the unilateral cancellation of their long-standing agreement, the DOJ will view any request for legal opinion as a request for administrative adjudication or settlement under the revised administrative code, which provides that all such disputes between government entities should be brought before the DOJ, OSG (Office of the Solicitor General), or OGCC (Office of the Government Corporate Counsel), as the case may be,” Guevarra told reporters. Guevarra also said the SOJ, as attorney general, does not issue legal opinions or commence administrative adjudication proceedings “unless requested by heads of government agencies or other state instrumentalities”. The so-called DND-UP accord was a violation of the equal protection clause under the 1987 Constitution, Armed Forces of the Philippines chief-of-staff, Gen. Gilbert Gapay, said earlier. In a statement, Gapay said it was only UP that enjoyed privileges under the recently-terminated agreement. “There is no substantial distinction between UP and other schools, state colleges, and universities. To give to UP such entitlement places it an unfairly advantaged status over the academic institutions and defies that Constitutional guarantee of equality of rights and protection under our laws,” Gapay said. Gapay expressed support to DND’s move to terminate the 1989 accord, saying it was “unfair to the Filipino people and runs contrary to the public interest”. “Thus, the termination of the said accord does not violate the Constitution or any substantive laws of the land. On the contrary, the termination rectifies what we believe was in fact infringement of our Constitution,” he said. He said that it is high time to put an end to a deal which has been taken advantage of by the Communist Party of the Philippines-New People’s Army (CPP-NPA) “in perpetuating their deceptive recruitment.” Critics of the accord’s termination said the move was an infringement of academic freedom, but Gapay clarified that the military would not interfere in the state university’s “liberty to choose who may teach, what can be taught, the manner with which it will be taught or who may study in UP”. “That academic freedom is guaranteed by the Constitution, it does not require enabling laws or any other agreements — certainly not from the voided agreement,” Gapay said. The AFP records show that at least 18 UP students who were recruited by the NPA have perished in skirmishes with government security forces. “And this deadly recruitment has to stop. The CTGs (Communist Terrorist Groups) can no longer lurk in the university as they did before knowing that the AFP cannot enter the campuses without the prior consent of the school administrators,” Gapay said. The military, he said, cannot remain bound by an agreement that dictates they have to seek permission before they can enter UP campuses. “As a way forward, we will pursue a more collaborative relationship between UP —and other universities for that matter— to usher the rebirth of schools and state universities that are bastions of genuine patriotism and not of misguided activism,” Gapay said. The CPP-NPA is listed as a terrorist organization by the United States, European Union, the United Kingdom, Australia, Canada, New Zealand, and the Philippines Source: Philippines News agency
Peso ends flat as shares rise on bargain hunting
January 25, 2021 12:00 am

The local stock barometer ended Monday higher while the peso continued its sideways close against the US dollar as investors stayed at the sidelines partly due to developments in the US and the pandemic. The Philippine Stock Exchange index (PSEi) rose by 0.36 percent, or 25.67 points, to 7,071.50 points. All Shares increased by 0.21 percent, or 8.96 points, to 4,250.65 points. It was a balance among the sectoral gauges, with Financials rising by 1.50 percent, Property by 1.15 percent, and Services by 0.31 percent. On the other hand, the Mining and Oil index declined by 1.17 percent, Industrial by 0.80 percent, and Holding Firms by 0.16 percent. Volume totaled 79.86 billion shares amounting to PHP9.11 billion. Losers led gainers at 129 to 92, while 39 shares were unchanged. “Investors resorted to bargain hunting as they weighed the outlook for (US) President (Joe) Biden’s nearly USD2 trillion stimulus bill and grew concerned amid reports that the new coronavirus variant may be deadlier,” Luis Limlingan, Regina Capital Development Corporation head of sales, said. Meanwhile, the peso kept its footing and finished the day at 48.079 from 48.085 last Friday. It opened the day flat relative to the previous session at 48.07. It traded between 48.085 and 48.05, resulting in an average level of 48.067. Volume totaled USD763.05 million, lower than the previous session’s USD1.09 billion. Source: Philippines News agency

Dinagat Islands posts zero Covid-19 cases for a week
January 25, 2021 12:00 am

The Province of Dinagat Islands continues to remain free from coronavirus disease 2019 (Covid-19) cases from Jan. 18 to Jan. 25, the provincial government said Monday. This despite the continued reports on new Covid-19 cases in other provinces and cities in Caraga Region. “One week with no new active cases of Covid-19 in the whole province of Dinagat Islands. This is the result of the support of our communities and the hard work of our front-liners in our different Inter-Agency Task Forces from the provincial level to the barangay,” the Dinagat Islands Provincial Information Office (PIO) said in a statement. But the provincial government said residents should not be complacent and must follow all the minimum health standards. “Let us continue following our health and safety protocols to prevent the resurgence of this deadly virus in our province,” it said. Along with Dinagat Islands, Surigao del Norte also did not register any cases as of Monday. On the same day, the Department of Health in Caraga (DOH-13) reported 66 new Covid-19 cases in the region. Fifty patients are asymptomatic while 16 have mild symptoms, DOH-13 said. Forty-six of the new cases are classified as local transmissions that also infected five healthcare workers and four front-liners. Twenty-one new cases were recorded in Surigao del Sur, 20 in Agusan del Sur, four in Agusan del Norte, 14 in Bayugan City, and seven in Butuan City. With the new cases, Caraga Region now has 5,787 Covid-19 cases with 4,830 recoveries, 703 remaining active cases, and 254 recorded deaths. Source: Philippines News agency
Mexico’s president tests positive for Covid-19
January 25, 2021 12:00 am

Mexican President Andres Manuel Lopez Obrador on Sunday announced that he has been diagnosed with Covid-19 and has started medical treatment. “I regret to inform you that I’m infected with Covid-19. The symptoms are mild and I’m already under medical treatment. As always, I am optimistic. We will pull through,” Obrador said on his Twitter account. Obrador said he will deal with pending issues from the National Palace. “I will be attending to public matters from the National Palace. For example, tomorrow I will take a call from [Russian] President Vladimir Putin because, friendly relations aside, there is the possibility that they will send us the Sputnik V vaccine,” he said. On Sunday, Obrador led the inauguration of the installation of the National Guard in the state of San Luis Potosi, a public event where he was not wearing a face mask. His infection comes 14 days after presidential spokesman Jesus Ramirez Cuevas tested positive for the virus. Foreign Minister Marcelo Ebrard reached out to the President, wishing him well. “My best wishes for the quick recovery of our President Andres Manuel Lopez Obrador. He will pull through,” Ebrard said in a tweet. The National Council of Science and Technology estimates that Mexico has a total of 1,948,355 coronavirus cases and 168,340 deaths. As of Jan. 23, the country had administered 618,768 vaccines. Source: Philippines News agency
Cold chain facility in Taytay ready to store 28M vaccines
January 25, 2021 12:00 am

A cold chain storage facility in Taytay, Rizal is now ready to house coronavirus vaccines, Mayor Joric Gacula said on Monday. Gacula said the municipality of Taytay is ready to facilitate the storage and deployment of the vaccines as local government officials and municipal health officials visited and inspected the cold chain facility owned by the Royale Cold Storage Inc. in Barangay San Isidro. “This is very suitable to the AstraZeneca vaccines and Moderna vaccines that were ordered by Taytay municipal government,” Gacula said in a social media post. Gacula said the local government wants to ensure smooth preparation for the national immunization campaign. “Handa na ang Taytay LGU sa pagdating ng bakuna (na) nagmumula sa syempre sa ating national government, ganun din ang bakuna na inorder ng ating LGU (The Taytay LGU is ready for the arrival of the vaccines ordered by the national government as well as the LGU’s vaccine orders),” he said. The local government has initially allotted PHP300 million to augment the national government for the procurement of Covid-19 vaccines, he said. Taytay also signed a tripartite agreement with the national government and pharmaceutical company AstraZeneca. Gacula said the local government is also coordinating with the government and Moderna to acquire additional vaccines, as it is the most preferred brand of its residents. During his visit, Gacula said the cold storage facility can accommodate around 28 million doses of vaccines that will require a temperature of up to negative 20°C. “Kaya napili namin ito dahil ho unang-una, world class ang facility atsaka protektado ang ating bakuna dito na nakakatiyak tayo na hindi mapapaso ang bakuna (We chose this facility because our vaccines are protected from spoilage),” he said in an interview. Gacula said the local government targets to inoculate around 370,000 residents. He said some 70 nurses are now prepared to facilitate the municipal-wide vaccination program. The local government is also readying its vaccination sites including observation rooms that will house patients after inoculation, he added. Gacula said they are also set to establish an online monitoring system to observe possible reactions from the vaccinated residents. He then urged residents to stay safe and observe minimum health standards while waiting for the arrival of the vaccines in the country. Source: Philippines News agency

PH pledges $100-K to COVAX facility
January 21, 2021 12:00 am

The Philippines has pledged USD100,000 to the Covid-19 Vaccine Global Access (COVAX) Facility during the Asean Foreign Ministers’ Retreat, Foreign Affairs Secretary Teodoro Locsin Jr. said Thursday. “I just pledged $100,000 to COVAX at Asean Foreign Ministers Retreat; I will make good on it. It is not always & only about us; it is as often about the rest of humanity esp. those most disadvantaged,” he said in a tweet. “As humans– I hope, we leave none of humanity behind to the extent we can help it.” The COVAX facility, co-led by Coalition for Epidemic Preparedness Innovations (CEPI), Gavi, the Vaccine Alliance, and the World Health Organization (WHO), aims to ensure equitable access to vaccines, especially for low and middle-income countries. The initiative seeks to deliver two billion safe and effective vaccines that passed regulatory approval and WHO prequalification by the end of 2021. Earlier, vaccine czar Secretary Carlito Galvez Jr. said Manila may get around 30 to 40 million doses of Covid-19 vaccines from the COVAX facility for free. During the Asean meet, the bloc also agreed to use its Covid-19 Asean Response Fund in the procurement of vaccines, medical supplies, and equipment for the people of Asean member states. This as the foreign ministers in attendance underscored the need for “fair, equitable and affordable access to safe and quality vaccines and their procurement for all people in Asean”. The virtual Asean Foreign Ministers’ Retreat held on January 21 is the first Foreign Ministers’ meeting during Brunei’s Chairmanship of 2021. Source: Philippines News agency
Below 3.2% average inflation seen this year
January 21, 2021 12:00 am

The possibility of inflation averaging higher than monetary authorities’ projected 3.2 percent is less likely this year given the economic impact of the pandemic, a ranking Bangko Sentral ng Pilipinas (BSP) official said. In a briefing streamed over the BSP’s Facebook page Thursday, BSP Deputy Governor Francisco Dakila Jr. said the balance of risks to inflation leans on the downside. “That means when we look at all the different possibilities. It’s much more likely that you can have an average that is a little bit below 3.2 percent for the year rather than higher than 3.2 percent,” he said. Downside risks to the rate of price increases this year include the dampening effects of the pandemic which impact economic activities. Upside risks, on the other hand, include weather-related disturbances, which Dakila said “are really on the short-term.” For 2022, the BSP’s average inflation forecast is 2.9 percent. Both this and next year’s projected average inflation rate is within the government’s 2-4 percent target band until 2024. Dakila said the trajectory of inflation points to a rate of above the midpoint of the target in most of this year. He said the uptick of December 2020 inflation rate to 3.5 percent, from month-ago’s 3.3 percent, is still attributable to the impact of the heavy typhoons in the latter part of last year and the rise in the international oil prices, both of which are supply-side factors. Amidst the acceleration of inflation rate in the last two months of last year, average inflation in 2020 stood at 2.6 percent, below the 2-4 percent target band. “We see that the impact of these factors will be concentrated more on the first half of the year and perhaps continuing a little bit into the second half. But later on, inflation can drop to below the midpoint of the target towards the last half of the year. Again, being driven by, this time, base effects,” Dakila added. Source: Philippines News agency
NegOcc animal farm income up 13.7% in 2020
January 19, 2021 12:00 am

Income of animal farms owned by the Negros Occidental provincial government increased by 13.7 percent in 2020, figures from the Provincial Veterinary Office (PVO) showed. Total earnings reached about PHP3 million in the past year compared to about PHP2.59 million in 2019. Provincial veterinarian Renante Decena said in a report on Tuesday the increase can be credited to higher sales of live animals like sheep and cattle, which amounted to PHP1.2 million. “There’s an increasing number of interested farmer-entrepreneurs who have worked for progress amid the ‘new normal’ condition brought by the Covid-19 pandemic,” he said. Decena added that raisers have seen the potential of livestock and poultry-raising as a means of alternative livelihood. Other income came from sales of farm products and services, including free-range chicken, dairy cattle, dairy products, liquid nitrogen, peking ducks, dairy training, eggs, and farm waste manure. Decena said the higher income indicates that products and services catered and rendered by the provincial farms are essential and highly-patronized by partner-stakeholders such as local government units, associations, private individuals, and neighboring provinces. The two provincial farms, managed and operated by the PVO, are the Negros First Ranch (NFR) in Barangay Sta. Rosa, Murcia and the Provincial Livestock Breeding Center and Dairy Farm (PLBCDF) in Barangay La Granja, La Carlota City. “They reached the targets despite the many challenges encountered last year due to extended lockdowns,” Decena said. In 2020, the PVO launched the Abanse Negrense Cow Fresh Milk and Yogurt Ice Cream with mixed fruits produced and processed at the PLBCDF, and provided bottled flavored milks to front-liners of La Carlota City and the Provincial Incident Management Team. “This year, the PVO remains committed to increase farm productivity, farm revenues and reduce costs,” Decena added. Source: Philippines News agency
Cautious optimism for PH growth in 2021: biz strategist
January 19, 2021 12:00 am

The country is expected to regain its growth momentum by the second half of 2021 as challenging economic recovery remains on the horizon, the chief strategist of an equity brokerage house said on Tuesday. In a webinar of the German-Philippine Chamber of Commerce and Industry (GPCCI), Regis Partners Inc. chief strategist and co-head research Rafael Garchitorena said they are more cautious on the country’s economic growth this year but a better economy is expected by 2022. “We are confident and we can get the momentum going in the right direction by the second half of the year. It might be a little bit late than everybody else but there’s a lot of reason to be optimistic for economic recovery,” he said. Garchitorena said enacting the Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill into law is a “big hope” for businesses as this would provide them a tax break which is retroactive from July 1, 2020. However, this legislation would directly impact enterprises and a lot of trickling down is required for the poor to feel effects of the CREATE. “But Covid (coronavirus) is hurting the poor. What will a corporate tax break would really mean for jeepney drivers? Nothing really. What will it do for the informal economy where there is no really income tax rate?” he asked. Garchitorena added one of the key risks in the economic growth this year is the rising inflation. In December 2020, the inflation rate settled at 3.5 percent. “It’s bad for consumption especially with high unemployment and rising input costs,” he said. Garchitorena said increasing oil prices, which is now close to pre-pandemic level, has pushed higher power rates and transportation costs. These are expected to impact the cost of goods and services. “I hope inflation numbers would come later,” he said. Garcitorena also said since the fiscal stimulus of the government is weaker compared to neighboring countries, it should push for reopening of economic activities and relaxing mobility restrictions. He added the government should expand further the transportation sector and also make domestic travels easier. On the other hand, Garchitorena said implementing the 2021 budget will stimulate economic recovery, with infrastructure spending expected to create more jobs for Filipinos. “But I’m very certain that by this time next year, it’ll be a much rosier picture economically than today,” he added. Source: Philippines News agency