MS. OSEÑA-PAEZ: Magandang umaga, Malacañang Press Corps, and welcome sa ating press briefing ngayong araw.

President Ferdinand Marcos Jr. led the NEDA Board meeting this morning where the proposed executive order implementing the Philippines’ tariff commitments under the Regional Comprehensive Economic Partnership Agreement (RCEP) was approved.

The NEDA Board also approved the social protection floor recommendations with proposed strategies for social protection guarantees for healthcare, children, active age and older persons.

And to give us more details on this, we have today NEDA Secretary Arsenio Balisacan and DTI Secretary Alfredo Pascual. Good morning, sirs. And let’s start with Secretary Balisacan. Thank you.

NEDA SEC. BALISACAN: Thank you and good morning, everyone. Good morning, Daphne, members of the Malacañang Press Corps, ladies and gentlemen. During its fifth meeting, the NEDA Board, chaired by President Ferdinand Marcos Jr., approved two landmark measures that will advance our efforts toward achieving deep social and economic change leading to a prosperous, inclusive and resilient Philippines.

The first one was the approval of the EO (Executive Order) operationalizing the Philippines’ tariff commitment under the RCEP agreement that will be reported later by my colleague, Trade Secretary Fred Pascual.

The second measure is the approval of the recommendation for the Social Protection Floor (SPF) which were endorsed by the Cabinet level of the Social Development Committee. These recommendations aim to institutionalize and improve the government’s current initiatives that cater to the needs of the most vulnerable Filipinos.

The Social Protection Floor (SPF) refers to nationally defined set of basic social security guarantees that aim to prevent or alleviate poverty vulnerability and social exclusion. These guarantees provide protection to individuals and families in times of need. The guarantees should ensure that, at a minimum, everyone in need has access to essential healthcare and basic social services. These guarantees work together to provide effective access to goods and services that are defined as necessary at the national level.

To improve the delivery of social protection services, the SDC Cabinet level has endorsed its enhanced social protection operational framework of the Philippines to the president and the NEDA Board. This framework aims to enhance the quality of life for individuals receiving social protection services. This framework is the result of a lengthy stakeholder and multipartite consultations that began in 2014, so ngayon lang naaprubahan itong matagal nang pinag-uusapan na social protection.

I would like to reiterate that social protection and human capital development are among the government’s goals as outlined in the Philippine Development Plan for 2023 – 2028; will harness the framework to attain desired social objectives such as protecting the purchasing power of Filipino families and mitigating the harmful scarring effects of the COVID-19 pandemic especially on vulnerable segments of our population.

The SPF consists of four basic guarantees that cover the entire life cycle:
1. Health, including maternity care
2. Children
3. Active age
4. Older persons.

The SPF for health advocates for the complete implementation of Universal Health Care (UHC) to ensure that all individuals have access to adequate and accessible healthcare services.

Meanwhile, the SPF for children includes initiatives aimed at providing access to child nutrition, education and care. This SPF guarantees social protection for children, at least at nationally defined minimum level, and ensures the access to nutrition, education, care and any other necessary goods and services.

The recommendations under the SPF for children include the following: Enhancing the Pantawid Pamilyang Pilipino Program or 4Ps program;

Full implementation of feeding programs, for example, currently we are feeding 570,000 children for hundred twenty days. Under SPF, we aim to increase the number of feeding days to 219 in the medium-term, and to 365 days at the end of this administration’s term. We will also ensure to provide ready-to-eat and high nutritious food to children during calamities. Third, addressing teenage pregnancy; fourth, program for children in need of special protection; fifth, providing for healthcare and mental health support, and many other services.

The SPF for active age on the other hand compromises initiatives that support Filipinos who are unable to earn sufficient income including those who are part of the informal economy. This SPF includes provisions for emergency employment; enrolment of all beneficiaries of livelihood programs and social security programs; enhancement of existing unemployment insurance, social insurance coverage for job order and contract of service employees in the public sector; promotion of savings mobilization; employee compensation benefits; and programs for Overseas Filipino Workers or OFWs.

Lastly, the SPF for older persons aims to extend social assistance and social pension programs to senior citizens. Under social assistance, we will ensure that elderly individuals receive discounts, have access to life-long learning opportunities and receive integrated health services.

Additionally, under social pension, our goal is to fully implement Section 5 of the Expanded Senior Citizens Act which provides pension coverage to all indigent senior citizens.

Let me emphasize that today’s approval of the government Social Protection Floor is a significant progress in our country’s development history. This is a manifestation of the government’s commitment to significantly reduce poverty incidence and promote inclusive growth.

Thank you and I look forward to responding to any questions you may have later.

MS. OSEÑA-PAEZ: Okay. Secretary Pascual?

DTI SEC. PASCUAL: Thank you. Let me start by, maybe just a quick or review of the RCEP. There have been long discussions on this matter during the Senate hearings.

But anyway, the RCEP agreement is a modern, comprehensive, high quality and mutually beneficial economic partnership agreement which provides opportunities for market access on trade, services and investments.

The agreement also establishes clear, stable and predictable rules on trade and investments in our region which makes it more convenient and competitive for Philippine businesses and investors to be integrated into the global economy.

The Philippines confirmed its intention to become a party to the RCEP agreement with the ratification by President Marcos Jr. on 28th of November 2022 of the RCEP agreement.

The Senate of the Philippines concurred with the ratification done by the president with the issuance of Senate Resolution # 42 on 21st February 2023. As you may know, the Senate has created an oversight committee for the implementation of RCEP, and it has met recently.

The Philippines’ instrument of ratification was deposited with the ASEAN Secretary General on the 3rd of April 2023. The RCEP agreement will enter into force for the Philippines, 60 days from the said deposit of the instrument of ratification and that date of effectivity will be the 2nd of June 2023.

The issuance of the EO that we presented to the NEDA Board Meeting this morning, the executive order will operationalize the implementation of the Philippines tariff commitments under the RCEP agreement. The EO is proposed to be effective on the 2nd of June 2023 to coincide with the end of the 60-day period after the deposit of the instrument of ratification.

Once issued, the EO shall be the basis of the Bureau of Customs for the issuance of Customs administrative order which shall be distributed to all ports to allow for the implementation of the preferential tariffs on e-ports from RCEP member countries.

The issuance of the EO to implement the Philippines’ schedule of tariff commitments pursuant to a provision in Republic Act that created the Customs Modern Tariff Act or CMTA. This section provides the President shall upon recommendation of the NEDA Board modify, import duties including any necessary change in classification and other import restrictions as required appropriate to carry out and promote foreign trade with other countries.

The Joint Cabinet Committee has earlier endorsed this draft EO subject to Senate concurrence and the EO presented for endorsement to the NEDA Board this morning will implement Annexes A to F – that’s the meat of the EO, Annexes A to F of the Philippine schedule of tariff commitments under RCEP agreement. Essentially the EO will maintain current preferential tariffs on about 98.1% of the 1,718 agricultural tariff lines and 82.7% of the 8,102 industrial tariff lines.

Out of the 1,685 agricultural tariff lines, retained at current rates 1,426 tariff lines are maintained at zero while 154 tariff lines will remain in their respective most favored MFN rates or Most Favored Nation rates and excluded from any tariff concession.

Meanwhile, agricultural tariffs on 105 lines which are in the sensitive and highly sensitive list shall generally be lower than MFN rates in the 20th year of RCEP but still higher or at par with the ASEAN +1 rates. So in other words, there is really not going below the ASEAN +1 rates to which the Philippines is already committed.

For the remaining 33 lines – these are the important 33 lines – the EO will reduce tariff rates upon entry into force or implement gradual reduction over a period of 15 to 20 years. But if you examine these tariff lines, it will involve agricultural products which are not really being produced very much in the Philippines.

Noting the possible opportunities presented by the RCEP to the country, the committee or chair—the Committee on Tariff and related matters has requested the NEDA Board for endorsement to the President of the draft EO. And of course, this morning we endorsed it to the President for the issuance of the EO.

Now, following the issuance of the EO, these are more important things, and this is a bigger task for us in DTI in conjunction with the other departments of the government. We will have to make the public particularly the businesses in our country aware of the benefits that they can gain from RCEP as well as the other existing preferential trade agreements.

We will start with the major event which is the launching of the Export Development Plan which we have been drafting over the past few months – this will cover the period 2023 to 2028 and that will be an international trade forum where we will have a discussion on the benefits that businesses and the country as a whole can gain from RCEP and other preferential trade agreements, and also show what we are planning to do, our strategy for the next five to six years to increase the exports from our country. And of course, that’s tied up also with the investments that we are trying to bring in, particularly the export-oriented investments.

Following that launch which we are planning to schedule for the 9th of June, and we have invited the President to keynote the event, then we will have to do a more detailed educational campaign with the industry organizations, with sectoral groups to be able to explain the benefits that each of these industries can gain from RCEP.

And after that educational campaign and maybe towards the tail end of the educational campaign, we’ll start establishing assistance centers for businesses for possible assistance that we might be able to give to further help them implement the RCEP provisions that will favorably affect their industry.

So, that’s the implementation plan that we have for RCEP now that it has been approved for the issuance of the executive order that will formalize the approval of the tariff commitments of the Philippines under RCEP.

MS. OSEÑA-PAEZ: Okay. Thank you, Secretary Pascual. Let’s open the floor for any questions. Ace Romero, Philippine Star.

ACE ROMERO/PHILIPPINE STAR: Secretary Balisacan, regarding the social protection framework – you mentioned certain measures that are already being undertaken by the government including the enhanced assistance for vulnerable sectors. But, what makes it different this time? What makes this approved measure different from the previous measures being undertaken to help the vulnerable sectors of society?

NEDA SEC. BALISACAN: Yeah. The intention is to institutionalize the existing programs especially those that have been proven to work so that we don’t have to restart all over again when there are need to provide support to vulnerable groups ‘no. You know, we are a country that are exposed to a lot of risks – now we have climate change risk and we want to make sure that when these vulnerable members of our society are exposed to these risks, they do not fall to poverty… you know, because of those exposures ‘no so that we can sustain the progress we are making in poverty reduction.

That’s the basic concept there that we reduce the risk faced by vulnerable groups so that they don’t fall into poverty, so that children don’t become victims of, you know, lack of learning you know, and become—as you know, we have for example, very high learning poverty and that can be exacerbated by exposures to shocks like climate change, supply disruptions particularly those affecting food, inflation, loss of jobs by their parents. So we want to ensure that, you know, these children are protected from those shocks so that the society as a whole can progress.

ACE ROMERO/PHILIPPINE STAR: For Secretary Pascual. When will the President sign the EO on the RCEP tariff commitments?

DTI SEC. PASCUAL: Anytime now, but the effectivity will be on the second of June 2023, so anytime between now and the second of June. But, hopefully in an earlier time, so that [Bureau of] Customs can also prepare their administrative order.

ACE ROMERO/PHIL. STAR: Thank you, Secretary.

IVAN MAYRINA/GMA-7: Sir, which industries stand to benefit the most from RCEP, alin pong mga industriya that should take advantage of RCEP and how?

DTI SEC. PASCUAL: Well, there is a number of industries that will benefit. The thing is many of the tariffs will be kept at the rates we have already committed under the ASEAN+1. But the added advantage of RCEP is that we were able to gain concessions from the four countries that are the plus one of ASEAN. Like for example: With China we have been able to get tariff concessions or lower tariffs for preserved pineapples, pineapple juice, coconut juice, adhesive tape, printed paper, light signal, sound signaling, ignition, wiring, [unclear] graphic plate. And from Japan, fish fillet, pineapple, coke, coffee, sunflower seed, canned salmon, chocolate, fruit cocktail, fruit juices, leather gloves and footwear. From Korea, we will get concessions, lower preferential tariff for dried and salted tilapia, cheddar cheese, papaya, durian, soya bean, canned tuna, preserved pineapple, alcoholic beverages, cement, fertilizers, polymer resins, plywood, women’s jacket, men’s shirt and bicycle.

Now, maybe the industries are not yet there, but for example the garments industry, hopefully, we can revive it, you know with RCEP. Because under RCEP, our garment makers, maybe able to import the textile that they need to make the garments, and the determination of rules of origin will no longer be limited to the local content coming from the Philippines, but from all RCEP countries.

IVAN MAYRINA/GMA-7: For Secretary Balisacan, Ma’am Daphne. Sir, as a general question on the economy, iyong inflation po, sabi this year, medyo bababa na tayo. Are we seeing that?

NEDA SEC. BALISACAN: Yeah, we are seeing that. We are actively monitoring the situation and implementing the necessary measures to ensure that by the end of the year, we should be on our target of roughly around 4% and at 3.5 to 4%. So we are on that downward trajectory already.

IVAN MAYRINA/GMA-7: Lastly, humihina rin po ulit ang piso in recent days. What does this mean for the economy and what are we doing about it?

NEDA SEC. BALISACAN: What we want to achieve is a stable exchange rate. I think there’s a lot of misconception about the weakening peso. In fact, when the peso depreciates a bit – not too much, because too much depreciation will cause instability and that could prevent investment – that allowing it to a lower level like what it is now can improve our competitiveness whether we are for the producers of local substitutes of imports or our exports.

So the trick is to prevent sharp changes in those exchange rates because when you have that kind of world, it’s difficult to make decisions and therefore, investors will postpone their decisions to come to you or not, or to invest, or expand or not because they are not quite sure what the economic conditions are.

IVAN MAYRINA/GMA-7: Thank you.

Q: Good morning po, Secretaries. Regarding El Niño, is there any effect on the price of commodities and on our economy as a whole?

NEDA SEC. BALISACAN: Well, El Niño, according to our experts in the PAGASA and DOST, will likely hit us around the latter part of this year. And obviously as in the past experiences of El Niño, that will come with lower production particularly for our basic agricultural produce. What we want to ensure is that we can mitigate the negative effects of El Niño; we can start planning and putting the necessary adjustments now to reduce the negative effects. While at the same time, already making arrangements for the necessary support for those who are most exposed, particularly the vulnerable groups.

You know, this is part of the social protection that I was discussing earlier, that when you have events like that, we prevent people from falling into poverty, and then once they fall, it’s extremely difficult for them to go up and we don’t want that. So that is why, with the inflation, the elevated inflation that we have now if we are unable to reduce that inflation, and then you get this El Niño phenomenon that is a dangerous combination and we want to prevent that from happening.

PIA GUTIERREZ/ABS-CBN: Kay Secretary Balisacan, sir. Sir, can we get NEDA’s position on SIM registration and the possible negative impact of the mass deactivation of prepaid SIMs on Filipino telcos?

NEDA SEC. BALISACAN: I am not an expert on that, unfortunately. But, I think what we are trying to achieve with the SIM [registration] is to prevent all these scams and unintended uses of the technology. But, what we are at the same time pushing for is a faster digitalization of our economy including engagement with the public sector, with government. So, the registration of SIM, the number, will help us achieve that and ensure that the benefits for example that we are providing, and if these benefits are targeted at the vulnerable and the poor, we are assured that those benefits will end up with the intended or targeted groups.

DTI SEC. PASCUAL: May I add something? Now, SIM registration is very important as we move towards digital payments. And digital payments are what we need to happen to further promote and develop our MSMEs because that is how they can facilitate accessing the market and being able to sell online. If you are dealing with payments, you have to be sure that the communication is coming from a known source rather than from an unregistered SIM.

PIA GUTIERREZ/ABS-CBN: Sir, kasi malapit na po iyong deadline for the SIM registration.

DTI SEC. PASCUAL: Iyon lang ang isyu, pero that is not within our control.

PIA GUTIERREZ/ABS-CBN: May question, sir, iyong possible negative impact, kasi the telcos are saying na parang less than or around 50% pa lang iyong mga SIMs na nari-register. So, there’s iyong mass deactivation, sir. What can you say about or what do you think about iyong possible negative impact nitong mass deactivation ng mga SIM cards sa telcos? Do you think that it will impact the economy as well?

DTI SEC. PASCUAL: You mean, if the deadline is imposed and not all SIMS are registered? I think it’s a major concern especially based on what I commented on earlier. So, that has to be evaluated, you know by the telcos and by the concerned agencies in charge of ICT.

PIA GUTIERREZ/ABS-CBN: Sir, following on that, sir. Are you amenable for an extension of the deadline, kagaya ng hinihingi po ng mga telcos?

DTI SEC. PASCUAL: Well, if we really [unclear] registration, we need to be able to accommodate such a [unclear]. Personally, I will go for it. I don’t know the official position of the concerned department. But the campaign has to be done and we have to make sure that the registration happens, you know. It’s like voter’s registration, you know. We need the voters to register for us to have the exercise of the democratic process. And here, for security, we need the SIMs registered.

PIA GUTIERREZ/ABS-CBN: Sir, another question po, kay Secretary Balisacan. Sir, are you bothered by the 9-month low of Overseas Filipinos’ remittances earned? ‘Yung decrease recorded over nine months remittances.

NEDA SEC. BALISACAN: Yeah, over nine months. Not quite. That is not the first time that happened ‘no. But I think if you see that the longer-term trend, it’s rising. The rate of growth is now slower than used to be when the number of the amount … the total amount remittances was relatively low and the total number of OFWs is still relatively low. But now, huge number. So you know, small increments … increases can still be big amounts ‘no. And usually that’s the case, the rate of growth will taper, slow down but just because the base is already very big.

MS. OSEÑA-PAEZ: Thank you. Last question from Sam Medinilla, Business Mirror.

SAM MEDINILLA: For Secretary Pascual, itatanong lang po namin kung mayroon na po bang mga companies na nag-commit ng investment sa Philippines due to the RCEP at saka kung ano po ba ‘yung ginagawa ng … kung paano ginagamit ng DTI o BOI iyong RCEP to promote iyong Philippines for possible investment?

DTI SEC. PASCUAL: We’re driven by private-sector investors. So, we cannot dictate what they do. All we can do is to get them aware. And I’m sure the big companies are tracking what’s happening to RCEP and will act accordingly.

SAM MEDINILLA: Sir, follow-up lang po. Mayroon na po ba tayong data on foregone revenue because of RCEP?

DTI SEC. PASCUAL: Hindi pa effective iyong RCEP.

MS. OSEÑA-PAEZ: Okay.

DTI SEC. PASCUAL: But there … we know that there are companies preparing to avail of the benefits.

Q: [OFF MIC]

DTI SEC. PASCUAL: We don’t know yet. We’re not, you know, watching over the shoulders of private companies.

MS. OSEÑA-PAEZ: Thank you very much, Secretary Balisacan and Secretary Pascual, for the comprehensive briefing on RCEP and the social protection floor.

Thank you, Malacañang Press Corps. Have a good day.

 

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News and Information Bureau – Transcription Section