PH Exports Grow for Second Straight Month in February

MAKATI – Amidst a backdrop of the surging COVID-19 pandemic, Philippine merchandise exports grew by 2.8% in February 2020 to USD5.4B from USD5.3B in the same period last year, based on the preliminary Philippine Statistics Authority (PSA) data. Semiconductors were still the top export product, comprising 75.7% of electronics exports and 41.7% of all merchandise exports.

This was the second consecutive month of positive growth, after the 9.7% growth in January 2020. Cumulatively, merchandise exports grew by 6.1% in the first two months of 2020 to USD11.2B from USD10.5B in the same period a year ago.

The Department of Trade and Industry-Export Marketing Bureau (DTI-EMB) pointed out that for February, six of the top 10 export products recorded positive growth. These were other manufactured goods (45.0%); fresh bananas (29.6%); other mineral products (13.2%); machinery and transport equipment (11.7%); gold (6.0%); and electronic products (3.4%). Majority of export products were still electronic products at 55.1% while non-electronics made up the remaining 44.9%

After posting a 15.8% increase in January, electronics exports grew again in February, albeit at a slower pace, by 9.7%. This was a lot better than the negative 0.5% growth recorded in the same period last year. Meanwhile, exports of non-electronic products rose from a 24-month decline with a 2.0% growth to USD5.0B year-to-date (YTD) from USD4.9B in the same period last year.

In terms of markets, exports grew in seven out of the top 10 markets of the Philippines. Exports to Malaysia grew the biggest at 28.5% YTD to USD340M. This was followed by South Korea with an 18.9% growth to USD490M and Thailand with a 15.3% growth to USD500M.

Exports in the top three markets, namely China, including Hong Kong; Japan; and the US also grew in February, albeit more modestly. These countries made up 57.3% of all Philippine merchandise exports in the review period.

The Philippines was also in the five countries among 11 Asian trade-oriented economies with positive YTD growth. The country ranked 3rd in YTD and 9th in year-on-year (YOY) exports.

However, the stellar performer was Vietnam, which posted a 50% YOY export growth, according to Bloomberg, it can be attributed to shipments of new Samsung S20 phones.

On the other hand, Chinese exports declined the most at 17.3% in February, while it is battling with the COVID-19 pandemic.

In another development, the DTI-EMB is conducting an online survey to PH exporters on the "Impact of COVID on Your Export Business". The survey seeks to learn and understand the impact of COVID-19 on the exporters' businesses, with the results to be used as basis for a data-driven recovery plan to be crafted by DTI-EMB for the Philippine export sector.

DTI, DOF Grant Incentives to Manufacturers, Importers of Essential Products During Quarantine Period

The Department of Trade and Industry (DTI) and the Department of Finance (DOF) push for greater support in the manufacture and importation of essential products during the Enhanced Community Quarantine (ECQ) by granting incentives through the Joint Memorandum Circular (JMC) No. 20-02, series of 2020 issued on 1 April 2020.

Under Republic Act No. 11469, otherwise known as “Bayanihan to Heal as One Act,” DTI and DOF are authorized to liberalize the grant of incentives for the manufacture and importation of critical equipment or supplies.

In order to achieve this, the two agencies shall ensure the availability of essential goods and require businesses to prioritize contracts, subject to fair and reasonable terms, for materials and services needed by the government in its campaign against the COVID-19 pandemic.

The importation of these goods shall be exempt from import duties, taxes, and other fees.

“We need to ensure that the disruptions in the supply chain are minimized, as well as give enterprises a reprieve from commonly imposed taxes,” said Trade Secretary Ramon Lopez.

“We will help our manufacturers, especially those partnering with medical institutions and hospitals, procure or produce these essential goods at reduced costs by providing them with tax breaks during this global health crisis,” said Finance Secretary Carlos Dominguez III.

Sec. Dominguez added, “This is the least the Duterte administration could do to help our healthcare front-liners win the battle against COVID-19 by ensuring their access to personal protective equipment (PPEs) and other necessities to protect themselves and to medicines and medical supplies to treat their patients."

The Trade Secretary also mentioned that this was the government's way of showing gratitude for the cooperation of enterprises despite the restricted movement and conditions imposed during the quarantine period.

The JMC covers the production and manufacture of medicines identified critical by the Department of Health (DOH), medical equipment and devices, personal protective equipment, surgical equipment and supplies, as well as laboratory equipment and its reagents.

It also applies to the support and maintenance for the following: bit.ly/DTIDOFJMC2002

The JMC likewise covers raw materials and packaging materials exclusively used for the production of the above-mentioned products.

Among the provisions of the RA 11469 is for the government to collaborate with the private sector and other stakeholders to deliver these measures and programs quickly and efficiently.

Sec. Dominguez assured that the Bureau of Customs (BOC) will be able to assist in the timely release of the imports of raw materials, packaging, and articles required in the supply chain of production.

“We urge our partners in the private sector for their continued understanding on the importance of the unimpeded production and importation of these essential products," said Sec. Lopez.

Meanwhile, Sec. Dominguez said, "We thank these manufacturers, institutions, and hospitals that continue to innovate and produce essential goods to help save Filipino lives in the face of the pandemic."

With the continued cooperation of the private sector and other involved agencies, DTI and DOF remain optimistic in minimizing the spread of the virus and its long-term impact on the local economy.

The JMC shall remain in effect only during the effectivity of RA 11469.

DTI TO ENFORCE 30-DAY GRACE PERIOD FOR RESIDENTIAL, COMMERCIAL RENT DURING ECQ

MANILA – The Department of Trade and Industry (DTI) released Memorandum Circular (MC) No. 20-12, Series of 2020 on 4 April 2020 granting a 30-day grace period for residential rent as well as a similar grace period for Micro, Small, and Medium Enterprises (MSMEs) with their commercial rent during the Enhanced Community Quarantine (ECQ) period in Luzon.

“To provide economic relief to Filipinos and MSMEs during the COVID-19 public health emergency, DTI is implementing these guidelines to ensure their survival during the ECQ, as well as to help brace them afterwards,” said Trade Secretary Ramon Lopez.

Following Republic Act (RA) No. 11469, or the “Bayanihan to Heal as One Act,” DTI will enforce a 30-day grace period for commercial rents that fall within the duration of ECQ to give respite to MSMEs that have temporarily ceased operations. These enterprises will also not incur interest, penalties, fees, and other charges under the grace period. Similarly, DTI will ensure that a minimum of 30 days grace period shall be granted for residential rent that fall due within the ECQ under the same terms.

Under the MC, the grace period will be determined as 30 calendar days following the last due date of the rent during the ECQ. Cumulative amount of rents that need to be paid within the ECQ must be amortized equally in the six months following the end of the said period. This can be added to the rent owed for succeeding months without interest, penalties, fees, and charges.

On the other hand, lessors are not obligated to refund residential and commercial rents already paid by lessees during the ECQ. However, lessors must grant a minimum of a 30-day grace period from the next due date of residential and commercial rents without interests and other penalties as well.

Likewise, the MC calls on lessors of MSMEs to extend their generosity, if possible, the following: total or partial waiving of commercial rents due during the ECQ; granting a reprieve or discounted amount of commercial rents due after the ECQ; opening renegotiation of the Lease Term Agreements with lessees; and using other ways to mitigate the impact of the ECQ for MSMEs.

More importantly, the trade chief emphasized that there should be no eviction for failure to pay residential or commercial rent due within a 30-day period after the lifting of the ECQ.

“No Filipinos should lose their residence during the ECQ period. Moreover, the importance of MSMEs in jumpstarting our economy once the ECQ has been lifted cannot be understated,” Sec Lopez said.

“Through these measures, we ensure that our fellow Filipinos have a future after the ECQ with homes that they can live in and through jobs and employment provided by our MSMEs,” Sec. Lopez added.

Complaints of violations of the MC can be brought to DTI in person or electronically by emailing the agency, either through the Fair Trade and Enforcement Bureau (FTEB) through FTEB@dti.gov.ph or with the regional offices. Lessors who violate these guidelines will need to answer the Notices of Violations (NOVs) issued by DTI.

As provided under RA 11469, lessors that are found guilty of refusing to provide the 30-day grace period to lessees shall be penalized with imprisonment of not less than two months or a fine of not less than Php 10,000, or both.

Amazing Student Housing Experience at Casa Esperanza

Demand for quality student dorms is at an all-time high, with more and more students from out of town on the lookout for student housing that will enhance their student life.

An accessible location, safety and security, conducive conditions for study, and creature comforts rank high in the list of what student residents and their parents look for in student housing. Thankfully, there are fully-furnished student residences with facilities and built-in services that make students feel like they never left home.

Casa Esperanza, a new 9-storey boutique apartment located just across the University of Santo Tomas on AH Lacson Street is ready to take “dorm life” to a whole new level.

With 76 units for occupancy, it has twin beds in every room with individual study tables and chairs, and cabinets. Each room is equipped with a kitchenette with microwave oven and refrigerator, a toilet and bath with water heater and cable TV.

There is free Wifi access in the facility, but for students who wish to study in groups, there is a Study Room with high-speed internet where they can concentrate on their books and notes in cubicles, or do group work with class mates, conference-style in a bigger table. There is no need to worry about brown-outs because of a 100% backup genset power supply.

Residents can do their laundry in card-operated machines at a laundry room, and there is free housekeeping service twice a month, with options to upgrade to more frequent cleaning, if desired. The building is managed by a professional resident manager and serviced by a 24-hour maintenance staff.

Amenities-wise, there is a 24-hour convenience store on the ground floor, and a coffee shop on the second floor. The building has its own gym and an open roof deck where residents can hold events, parties or get-togethers.

Security-wise, there is 24-hour security, CCTV cameras, and proximity card entry for each floor. Safety-wise, there are smoke detectors, sprinkler systems and fire escape/fire-extinguishing equipment on all floors.

There is also a stunning fibre glass-topped atrium on the third floor that makes the building breathe and sparkle with light. The area can be used as a lounge place for residents or a place to watch the moon, or the stars at night.

Named after the mother of owner, Precy M. Florentino (also the president of the Music Museum Group that runs Theater Mall, Promenade, Greenhills Cinemas, Shoppesville Plus, Teatrino and Music Museum) says Casa Esperanza echoes the care and concern that her mother always had for her children. “She was always on the lookout for our safety and comfort. She always tried her best to give us the best. We want to pass on that motherly care to our residents to give them a home away from home. We want to continue our mother’s legacy,” Ms. Florentino said.

Starting May 4, an Early Bird Promo will provide a 5% discount on the room rate for those who will book a unit for one year. Room rates can go as low as P6,800 a month.

Casa Esperanza is located at 926 A.H. Lacson Avenue, Sampaloc, Manila. Please call (0917) 536-0914 or (02) 531-5487 loc.100 for inquiries.