NEDA reviews 26 infra projects
NEWS
National Economic and Development Authority (NEDA) Acting Secretary Karl Kendrick Chua said that 26 out of 104 infrastructure projects are under review to ensure that the projects are ready for implementation. For the 2021 General Appropriations Act, infrastructure accounted for PHP1.1 trillion (USD22.9 billion) or 5.4% of Gross Domestic Product (GDP). Acting Secretary Chua mentioned that they project the creation of 1.7 million direct and indirect jobs under the infrastructure program in 2021. NEDA Undersecretary Jonathan Uy added that they hope to finalize the list of projects by the end of 2020.
RESEARCH VIEW
Data from the Department of Budget and Management (DBM) show that infrastructure spending as of 10M 2020 reached PHP508.5 billion (USD10.6 billion), down 18.4% YOY. This is also lower than the government’s target of about PHP824.9 billion (USD17.2 billion) or 4.5% of GDP by the end of 2020. Colliers believes that higher infrastructure spending for 2021 should help support the country’s economic recovery and benefit the property sector. In our view, the continued construction of public projects such as roads and bridges is likely to stoke the property segment and help developers plan their new projects in the next 12 to 24 months. The timely approval and implementation of the 2021 national budget should also support the construction of infrastructure across the country. Among the projects likely to be completed between 2021 and 2022 are the LRT-2 East Extension, Cavite-Laguna Expressway (CALAX), Skyway SLEX Extension, MRT Line 7, BGC-Ortigas Link Bridge and the NLEX-SLEX connector road. Once completed, we see these projects benefitting Cavite, Laguna, Batangas, Bulacan, Rizal and key cities within Metro Manila.The implementation of more projects outside the capital region should also help landlords and tenants planning to diversify and build more offices and residential units outside of Metro Manila
PHL finishes in lower half of rankings for digital readiness
NEWS
In a study by Tufts University and Mastercard Inc. entitled Digital in the Time of COVID, the Philippines ranked in the lower half out of 90 countries surveyed in terms of digital infrastructure. The country ranked 64th in digital evolution and 52nd in digital momentum. On the other hand, the Philippines fared better in terms of fostering digital trust and user experience at 28th and 10th place, respectively. The rankings were determined based on more than 350 indicators.
Nielsen expects FMCG sales growth this holiday season
NEWS
Nielsen Philippines projects sales of fast-moving consumer goods (FMCG) to rise during the 4th quarter of 2020, led by food and baking products.. Nielsen also sees consumer behavior changing due to the increased utilization of online shopping and single-serve purchases. From 2017 to 2019, holiday sales reached PHP96.7 billion (USD2 billion), higher than the PHP91 billion (USD1.9 billion) recorded in July and August from the back-to-school season. Meanwhile, the Philippine Retailers Association (PRA) projects sales to remain subdued this holiday season but believes that December will likely remain as the top sales month for 2020, particularly driven by online shopping.
