th images menu user export search eye clock list list2 arrow-left untitled twitter facebook googleplus instagram cross photos entrep-logo-svg

Kick start your day, May 13: Duterte’s 8-point economic plan revealed

Plus, Monetary Board keeps interest rates steady and S&P warns PH on higher loans.
By Entrepreneur Staff |

 

Duterte’s economic vision

Presumptive President-elect Rodrigo Duterte’s transition team member Carlos Dominguez bared the incoming administration’s economic plan in a televised press conference on May 12, Thursday.

 

“We will continue and maintain the country’s macroeconomic policy,” Dominguez said.

 

The former cabinet member of Presidents Corazon Aquino and Fidel Ramos’ administrations presented an 8-point economic plan which focused on tax reform, agricultural development, foreign investment policies, infrastructure, and education and health services.

 

Related: Duterte's priorities: Agriculture, education, health, MSMEs


One of the most discussed issues during the campaign, tax reform will come in “reforms in bureaucracy” to ensure “less corruption in government,” Dominguez said.

 

Another issue Duterte is expected to address is the weakening agricultural condition in the country, which the team hopes to curb through “security of land tenure in rural areas to attract foreign investments in provinces.”

 

Related: Agribusiness: Key to inclusive growth in the Philippines


He admitted some of the plans will have to be addressed through constitutional convention.

 

This comes after President Benigno Aquino III signed the Administrative Order 49 on Presidential Transition Committee, to ensure a smooth transition between the outgoing and incoming leadership teams.

 

Aquino’s transition committee will be headed by Executive Secretary Pacquito Ochoa.

 

 

Monetary Board keeps BSP’s key policy rates

As the election come to a close, the Monetary Board decided to maintain Bangko Sentral ng Pilipinas’ (BSP) key policy rates for the overnight borrowing or reverse repurchase (RRP) facility at 4% and overnight lending or repurchase (RP) facility at 6% as well as its current interest rates.

 

While global economic conditions remain uncertain in recent months due to dropping oil prices, BSP is optimistic that inflation will continue to be manageable, as domestic economic activity will be largely driven by private household consumption.

 

BSP also maintains its target for the average inflation for the 2016 to 2017 period which will likely to settle within the range of 3.0 % ± 1.0 % point.

 

Related: PH April inflation unchanged

 

 

Loan growth to slow down in PH this 2017–S&P

Standard & Poor’s (S&P) Global Ratings warned Philippine banks on its pursuit of higher loans as this may result in higher credit costs, in a report titled “ASEAN Banks Can Withstand Asset-Quality Pain In 2016” released on Wednesday, March 11.

 

Related: S&P optimistic on PH despite election


“The ratio of non-performing consumer loans to total consumer loans has consistently been double that of total NPLs [non-performing loans] to total loans, although both the ratios have been improving,” S&P added.

ADVERTISEMENT - CONTINUE READING BELOW

 

It also noted the Philippine banking sector’s overall NPL ratio dropped to 2.2% in 2015 from 2.4% of the previous year. Loan growth is also seen to slow down at a range of 8% to 12% after its peak level of 21% in October 2014.

 

“Loan growth, particularly to the corporate sector, will likely keep moderating as well unless public infrastructure and development projects kick in under the government’s public-private partnership scheme,” S&P said. – Elyssa Christine Lopez

Latest Articles

Potato Corner Reopens Branch in Marawi

The famous food cart is back just two months after the conflict ended

byPauline Macaraeg | December 15, 2017 09:00:00

Here's How Millennials Can Reach Financial Freedom

Ever heard of this thing called passive income?

byJennifer Spencer | December 15, 2017 08:00:00

Too Many Meetings Suffocate Productivity and Morale

If you're spending more than 20% of your time in meetings, you're not working fast enough and...

byGeorge Deeb | December 15, 2017 06:00:00

6 Ways to Make Sure Your Resume Gets Read

Advance to the interview round by sidestepping common mistakes with not-so-common solutions

byDan Scalco | December 15, 2017 02:00:00

Top 5 Tips to Succeed at a Self-Taught Career Path

Dream careers start with excitement about your craft and taking on challenges with gusto

byAmber Aultman | December 15, 2017 00:00:00

How Much Cut in Personal Income Taxes Can You Expect Under the Newly Ratified Tax Reform Bill?

President Rodrigo Duterte just needs to sign the bill and it will take effect 15 days later

byEntrepreneur Staff | December 14, 2017 16:00:00

Productivity Hack: Free Up Space on Your Mobile with Files Go

An app that frees up space, finds files faster, and easily shares them

byNicai de Guzman | December 14, 2017 10:00:00

Which PH Cities and Towns Have the Most and Least Bank Deposits?

If you have Php10 million in the bank, you have more deposits than at least 10 entire towns

byPauline Macaraeg | December 14, 2017 09:00:00

The Holy Trinity of Business Growth: People, Process and Metrics

How do you keep your company profitable as it scales above 50 employees?

byDoug and Polly White | December 14, 2017 08:00:00

3 Relationships That Will Build the Tribe Every Entrepreneur Deserves

Life is a team sport, and we cannot succeed alone

byKim Perell | December 14, 2017 06:00:00

Science Says You Can Do This Simple Action to Boost Your Memory

You have to listen to your own voice

byNina Zipkin | December 14, 2017 02:00:00

This 6-Year-Old Kid Reportedly Earned US$11 Million on YouTube

His most popular videos are the ones with an "egg surprise." Watch them here!

byKitty Elicay for SmartParenting.com.ph | December 14, 2017 00:00:00