According to IDEA’s latest report, finance data showed that the government has incurred an P 18.08 billion public sector deficit in the first quarter, a reversal of the previous year’s P 8.35 billion surplus.
This was led by the lower surplus recorded by pension funds and government – owned and – controlled corporations (GOCCs). Nevertheless, the recorded consolidated public sector deficit was lower than the government-set ceiling of P62.23- billion for the quarter.
Likewise, on the corporate sector, the Leyte Agri Corp. (LAC) has started operating its ethanol plant, which is expected to produce 300,000.00 liters of biofuel per month. Agriculture Secretary Arthur Yap disclosed that Petron Corp. have started buying ethanol from LAC for its unleaded E10 fuel. Meanwhile, LAC Chairman Alejandro Barin said that Flying V sources its ethanol from LAC for its ethanol-blended gasoline.
Furthermore, local flour millers oppose bread maker’s calls to remove the tariff for imported flour, as this could hurt the local flour industry and result in foregone tariff collections.
In an open letter to Agriculture Secretary Arthur Yap, Philippine Association of Flour Millers, Inc. Director Ricardo Pinca said that removing the tariffs would make the local industry unable to compete since imported flour is much cheaper than the locally milled variants and would forego as much as P1.3 billion in government revenues, according to same report.
On the Export Side, according to Ernesto Santiago, president of the Semiconductors and Electronics Industries in the Philippines, Inc. (SEIPI), the local electronics industry sees mergers as it braces for the effects of the financial crisis in the US. He noted that the group projects a “fearless” forecast of zero to 5 percent growth in the electronics exports in early 2009, but hopes for a better second quarter next year.
Lastly, according to Trade Undersecretary Zenaida Maglaya, pork prices may increase by 20% as the holiday season nears. She noted that given the current decline of pork prices to P140-P150 per kilo from P170-180, the increased demand may only push the prices back to the previous levels. And finally, according to the European Chamber of Commerce of the Philippines (ECCP), European investments in the business process outsourcing (BPO) and energy sector is expected to increase, although the business leaders noted that the country should be more aggressive in attracting investors, as Europe “knows only India.” Business Process Association of the Philippines President Danilo Reyes said that he expects investments from Europe to rise next year.
Incidentally, NewsBriefs is a regular digest produced by the Institute for Development and Econometric Analysis, Inc. (IDEA) whose Chairman, Dr. Cayetano W. Paderanga Jr., is my former President/CEO. IDEA’s NewsBriefs’ purpose is to highlight the most recent national and international economic events.
For credit & collection (C&C) questions, comments and rejoinders you want to share or inquire, you can reach him at 0917-7220521 or at elimtingco@cibi.net.ph