PCO ASEC. HIDALGO: Magandang hapon, Malacañang Press Corps, at welcome muli sa ating press briefing ngayong araw, December 14, 2023.
Sa ikalabindalawang pagpupulong ng National Economic and Development Authority (NEDA), inaprubahan ni Pangulong Ferdinand R. Marcos Jr. ang draft executive order na nagpapalawig sa reduced Most Favored Nation o MFN tariff rates of meat of swine, corn and rice. Inaprubahan din ng Pangulo ang ilang infrastructure projects at plano, kagaya ng Dalton Pass East Alignment Road at ang Masterplan on the High Standard Highway Network Development. Tinalakay din ang ilang update tungkol sa mga public-private partnership o PPP projects.
Para bigyan tayo ng mga detalye sa mga naging kasunduan ng Pangulo at ang panghuling NEDA Board meeting ng taon, we have with us NEDA Secretary Arsenio M. Balisacan. Good afternoon, sir.
NEDA SEC. BALISACAN: Good afternoon, Wheng. Good afternoon, members of the Malacañang Press Corps.
This year has been very highly productive for the NEDA Board as we were able to convene at least once a month, making it the most regular series of NEDA Board meetings in recent times. This demonstrates President Ferdinand Marcos Jr.’s strong recognition of the importance of expediting the approval of game-changing projects that are crucial to social and economic transformation for the Philippines.
Following today’s meeting, which is also the last for 2023, I am pleased to announce that the NEDA Board has approved four high-impact projects, plans and policies. First, the NEDA Board confirmed the construction project of the Department of Public Works and Highways for a 23-kilometer 4-lane alternative route to bypass the existing Dalton Pass in Central Luzon particularly during road closures due to calamities. With a cost of 67.4 billion pesos and an expected completion by 2031, the project will facilitate the seamless transport of people in the delivery of essential goods and services within the region.
Second, the Board endorsed the proposed executive order to extend the reduced Most Favored Nation or MFN tariff rates on selected commodities covered under Executive Order No. 10, Series of 2022 including pork, corn and rice until December 31, 2024. Thus, the tariff rates for pork will remain at 15% in-quota and 25% out-quota; corn at 5% in-quota and 15% out-quota; and rice at 35% for both in-quota and out-quota for the extended period.
In addition, the NEDA Board also approved the recommendation of the Committee on Tariff Related Matters to modify the review period for the tariff rate on coal from semestral to an annual basis. Meanwhile, the tariff rates on pork, corn and rice will be reviewed in a semestral basis. The proposed extension of the reduced tariffs will help ensure an adequate supply of agricultural commodities and maintain stable and affordable prices thereby better managing potential inflationary pressures.
We’ll also be able to encourage alternative supply to diversify the country’s market sources and establish a forward-looking trade policy that will allow effective and timely response to back for possible supply and price shocks brought about by major challenges such as the worsening African Swine Fever (ASF), anticipated impact of the El Niño phenomenon and continuous increases in commodity prices in the world market.
Third, the NEDA Board also confirmed the second phase of the masterplan on high standard highways (HSH) Network Development of the Department of Public Works and Highways. This aims to provide the higher quality, high standard highway network for faster, safer, more comfortable, more reliable and an environmentally-friendly road transport supporting the goals of rapid, inclusive and sustained economic growth in the country.
The masterplan has identified 53 class 1 projects that will be implemented in the short term, meaning, to be completed by 2030; medium term, meaning to commence in 2030 and to be completed by 2035; and long term, meaning to commence in 2035 and completed by 2045. These projects will support connectivity for economic growth and development, efficiency in reducing traffic congestion, environmental sustainability and social acceptability.
Lastly, the NEDA Board approved the 8-point action agenda of the Department of Health medium-term strategy for the health sector from 2023 to 2028. Aligned with the Philippine Development Plan and the Universal Health Care program, this action agenda contains priority strategies for the health sector that are divided into three major parts dedicated for every Filipino, every community and every health worker and institution in the country.
It takes into consideration the current health outcome, lessons that can help improve our health systems as exposed by the COVID-19 pandemic and the implementation of the Mandanas-Garcia ruling.
During the meeting, the NEDA Board also received updates on previously approved PPP projects namely – one, the University of the Philippines General Hospital (UP-PGH) Cancer Center Public-Private Partnership Project is currently undergoing procurement in accordance with the BOT Law; two, the Tarlac-Pangasinan-La Union Expressway Extension Project is currently undergoing a Swiss challenge. The contract may be awarded in March if there is no challenger or in May 2024 if there’s a challenger; three, for the solicited proposal to rehabilitate, operate, expand and transfer of the Ninoy Aquino International Airport PPP Project, the deadline for the bid submission for the project is on December 27; four, on the upgrade expansion, operation and maintenance of the Laguindingan International Airport – negotiations between the DOTr and Civil Aviation Authority of the Philippines (CAAP) and the proponent were conducted from September to November 2023.
The award of the contract is expected to take place between May 2024 and February 2025; as for the Dialysis Center PPP Project for the Renal Center Facility of the Baguio General Hospital and Medical Center, the bidding for the project started and to commence before the year ends; finally, as for the upgrade, expansion, operation and maintenance for the Bohol-Panglao International Airport – negotiations between the DOTr, CAAP and the original proponents has commenced in November 2023. The contract of award is expected to take place between August 2024 and May 2025.
Finally, this year is all about laying the groundwork and establishing the foundation to achieve our development goals. As we conclude this year, we are committed to sustaining our efforts to place vital programs and projects that will enhance connectivity, generate high quality employment through investments and significantly improve the living standards for every Filipino.
Maligayang Pasko sa inyong lahat. Thank you and I look forward to your questions.
MS. OSEÑA-PAEZ: Pia Gutierrez from ABS-CBN.
PIA GUTIERREZ/ ABS-CBN: Thank you, sir, magandang hapon. Sir, what were the considerations of the President in extending EO Number 1o, kasama po ba dito, sir, iyong expected impact ng El Niño to the agricultural sector next year?
NEDA SEC. BALISACAN: Yes. The review of the Commission on tariff and related matters is that there are continuing challenges in the global markets, there are supply issues in the case of the swine for example, I mentioned the spread of the African swine fever. And with respect to corn and rice we still see shortages meaning demand exceeding production so that the shortage would have to be sourced from imports but world prices continue to be elevated and so, to reduce the impact of high prices coming from imported products we have to extend the validity of the reduced tariffs.
PIA GUTIERREZ/ ABS-CBN: Sir, iyong reduced tariffs po, how will they be beneficial to the agri sector?
NEDA SEC. BALISACAN: The tariffs while reduced are still high so it doesn’t really reduce the protection on our farmers. The global prices, as we have said, continued to be elevated and in fact rising and so what the reduced tariff does is—or to continue extending the reduced tariff do is to prevent those increases in the world prices to be transmitted to our local markets at the expense of our local consumers. But in the meantime, that will not necessarily reduce the prices received by our farmers.
MAYRINA/GMA7: Secretary, the price of rice has remained high despite expectations that by this time, medyo magti-taper off po iyong increases or mag-i-stabilize because of the entry of new harvest, iyong mga imports. How were we in terms of stabilizing the price of rice, ano po kaya ang magiging impact nito sa bottom line sa inflation rate targets natin.
NEDA SEC. BALISACAN: The prices continued to be elevated. As you see from the last inflation report for November, the inflation for rice is quite high and that is because in the world market, prices continued to rise. Partly arising from the fact, that the world is expecting an El Niño that affects every rice-producing country, and in fact, the bans imposed by India continue and so the world market has taken those into account. So, just to ensure that those higher prices will not be transmitted into our local markets at least—or temper the effects of those prices from the global market and our local markets, we need to keep those reduced tariffs. Otherwise, if you don’t keep them, meaning the tariffs will now move in the case of rice, from 35 to 50%. So, World prices are rising, pagkatapos dagdagan mo pa ng another increase in price, ‘di mas lalong mag-spike iyong prices paid by our consumers. So, we don’t want that to happen. And of course, it will impact also inflation.
NIU/DZBB: Hi, sir. Ito po bang inaasahan nating mas matinding El Niño by next year ay makakaapekto rin ng matindi sa ekonomiya ng ating bansa, sa papaanong paraan?
NEDA SEC. BALISACAN: Ang ginagawa natin ngayon is prepare for it, prepare for the worst. We know that according to the data presented, that was by DOST that the worst will possibly come in April, May when many of our provinces may experience droughts and dry spells. So, dapat nagpi-preposition na tayo to ensure that we have enough, we have prepared our farmers, we have get our agencies to prepare for example iyong mga irrigation systems. They have this time number of months to prepare for those and so on and so forth.
So, the Task Force on El Niño that our President has created is essentially aimed to consolidate those various efforts of our line agencies to ensure that we are able to mitigate the adverse effects of the El Niño phenomenon not only in food supplies but also in water, power, health and public safety in general.
FERNANDEZ/POLICE FILES: Sir, as you have mentioned, how can the government try to help this problem regarding the shortages of the products you have mentioned?
NEDA SEC. BALISACAN: Number one, as I said, we have to prepare well, meaning that in our case at NEDA, just to be more specific, we need to regularly monitor the market supply and demand, the market situation for each of these basic commodities. So that we can advise government, government agencies, the President, the Cabinet on appropriate actions. For example, kung maraming makita natin na napakalaki ng iyong potential effects sa production sa rice halimbawa, then you know we need to look at options that we can use ‘no, we can deploy to mitigate the effects, the effect of such say, decreased in production ‘no, on prices and the access to food by vulnerable groups.
So, we work with—we advise for example, si DSWD to accelerate the deployment of food assistance sa food stamps to ramp up their deployment of food stamps, advise the Department of Agriculture to preposition by way of importing the expected shortages that when that time comes na may talagang shortage we have enough to in storage to release for [inaudible] of those gaps are closed.
VANS FERNANDEZ/ POLICE FILES: How about—Can you try to give us an update on our Philippine economy this 2023?
NEDA SEC. BALISACAN: Update on?
VANS FERNANDEZ/ POLICE FILES: Philippine economy?
NEDA SEC. BALISACAN: 2023? We have done well. Given the circumstances, that’s a very challenging year to say the least. The world market was as far more challenging than initially expected say, at this time/period last year. Then, months later you saw all these multilateral agencies reducing the growth prospects for practically almost every country and the world in particular—so a much more reduced growth prospect. And I said, we have done well because if you look at the way we have performed in relation to those many other countries, we have remained among the top performers—economic performers in Asia.
And in Southeast Asia in according—siyempre, the report of ADB yesterday we remained the best performer in our region. So I’ve not given up yet the 6% because it is a low range or the low number for a range of 6 – 7% ‘no. I’m still hoping that we get at least the 6% but even if we missed that a bit, again, you know that we should congratulate ourselves or congratulate. We should be very thankful that we have—did not get as much, you know reduction as the many other countries.
Moving forward, for 2024 we do think, one, we have learned many lesson also from this year and how to better manage our programs. For example, we had hiccups on the government spending in the first half of the year right and that really hit us hard by way of growth and the kind of services that we were able to provide our people.
We have learned our lessons. Verily, if we would not want to see that repeated in the coming year, we have—I think that looking at what our many development servers are seeing na reporting, they see the Philippines to be a rising star in this part of the world. So, we are optimistic and I think that despite the challenges, we have done well.
PCO ASEC. HIDALGO: Okay, any more questions?
Okay no more questions? That concludes our press briefing this afternoon. Thank you Secretary Arsenio Balisacan, and thank you Malacañang Press Corp.
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