The Outsourcing Week in Review: Thursday, January 13, 2022

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THE WEEK IN REVIEW

The Philippines saw a whopping 98.9% year-on-year increase in the country’s foreign direct investments (FDIs) in October – bringing the country’s total FDI inflows above the P8-million mark. According to a statement by the Bangko Sentral ng Pilipinas (BSP), last October’s FDIs hit $855 million. These investments mainly came from Japan, Singapore, and the United States.

Onto more good numbers, real estate investment in the Philippines raised P76.42 billion in new capital as a result of correcting the “flaws” in the regulatory framework of the financial instruments. Meanwhile, the Department of Finance (DOF) is hopeful that Congress will approve amendments to the Public Service Act, the Foreign Investments Act, and the Retail Trade Liberalization Act to further open the economy to foreign participation. President Rodrigo Duterte previously signed a law that lowers the minimum investment of foreigners from P125 million ($2.5 million) to P25 million (US$488,000). To balance the scale, the Philippine Chamber of Commerce (PCCI) backs the Department of Trade and Industry (DTI)’s initiative to promote locally-made products through amendments to the  Government Procurement Reform Act.

Manufacturing in the Philippines showed a similar upward trend, posting 25.3 per cent growth in 2021. Data from the Philippine Statistics Authority (PSA) revealed that the growth in the Volume of Production Index (VoPI) was attributed to the manufacturing of refined petroleum products, wood, bamboo, cane, rattan articles, and related products.

To cope up with the new normal, the government is being further urged to allow work-from-home liberties to firms registered with Philippine Economic Zone Authority (PEZA). According to Associate Director Of Office Services And Tenant Representation at Colliers Philippines Kevin Jara, the government “should consider extending the WFH flexibility until such time that the Registered Business Enterprises (RBEs) feel confident with the health and safety of their employees.”

Although 2021 was a tough year for most industries, the outsourcing industry has seen a spike in client interest and has shown a lot of operational resilience and growth. Outsource Accelerator yesterday published its results for 2021, and the figures are impressive. The platform generated 2,069,719 page views, 6,505 inbound inquiries, and 4,600 outsourcing quotation requests representing 18,075 jobs worth an estimated $542,250,000 in value.

Talking about big numbers, the Philippines closed 2021 with a record-high inflation rate. The Philippine Statistics Authority (PSA) reported a concerning 4.5 per cent inflation rate– which is the highest the country has seen in three years.

With the New Year, comes a new government agency under the Republic Act 11641. The administration created the Department of Migrant Workers (DMW), a “one-stop-shop” that will cater to the needs of Overseas Filipino Workers (OFWs). Sen. Joel Villanueva, the primary sponsor of the bill, said “We make good on our promise for our OFWs to be treated better, with dignity befitting heroes who have kept the country’s economy afloat and their families who stay behind and bear the sacrifice of being apart with their parents and relatives.”

Glimmer of hope? The number of jobless Filipinos is now down to 3.16 million, but many employees are still seeking better job opportunities. Ralf Ellspermann, CEO of Philippine outsourcing firm PITON-Global, said that there are still ample opportunities for Filipino workers in the customer experience field in outsourcing despite artificial intelligence advancement. More good news for the BPO sector! PMFTC, Philippines affiliate of Philip Morris International, pledges to invest P10 billion in the agriculture and business outsourcing sectors. This move will help create 1,000 jobs in the country.

Speaking of advancement, the National Telecommunications Commission (NTC) collected P9.09 billion in income last year, surpassing its target of P5.27 billion by 72.4 per cent. 2020 marked the sixth year that the agency has exceeded its annual goal. Congrats!

Further, as COVID-19 cases rise, the country’s business capital, Metro Manila, has been placed at a higher quarantine alert level to try to stymie the spread. With this move, it is expected that the economy will lose a further P3 billion as a result. However, the DTI assures the business sector no more hard lockdowns will be implemented.

As COVID-19 resurges with the more transmissible Omicron variant, with a positivity rate of 44 per cent, the Philippines sees its highest recorded infections during the first week of the year. The Department of Health (DOH) says Omicron is now the dominant variant in the country. However, there were less severe and critical cases despite the surge in new cases.

As the country grapples to emerge from the pandemic, the government is working on procuring anti-viral Covid-19 pills from Pfizer. The DOH has now directed the Food and Drug Administration (FDA) to prod Pfizer to submit an emergency use authorization (EUA) for the use of Paxlovid once a confidentiality agreement is signed.

Is this a sign of the end of the pandemic?

Thursday, January 13, 2022

NEWS THIS WEEK

12 January 2022

• Jobless Filipinos in November down to 3.16 million, but underemployment up anew – read article…
• Gov’t must extend WFH flexibilities to PEZA-registered firms –Colliers – read article…
• Duque says omicron now the dominant COVID-19 variant in PH – read article..
• ​PH BPO will thrive on CX amid AI advancements – read article..

11 January 2022

• PCCI supports DTI push to amend law to promote local products – read article…
• ‘No more massive lockdowns’, DTI assures – read article…
• PH FDI grew by 98% – read article…
• PEZA shifts to online transactions – read article…

10 January 2022

• All-time high daily Covid tally posted in PH, positivity rate now at 44% – read article…
• PH economy expected to shed P3B daily – read article…
• Manufacturing grows by 25.3%, PSA reports – read article..
• Congress urged to pass tax bill measures for foreign investments – read article..

07 January 2022

• PH signs new law that lowers investments for foreign enterprises – read article…
• Revenue collection rose 5% in first 10 months of 2021 – read article…
• NTC surpasses 2021 income goal by 72.4% – read article…
• PMFTC to invest P10Bn in agriculture, BPO – read article…​

06 January 2022

• PH sees 3-year high inflation rate as 2021 closes – read article…
• PH real estate investments raise P76.42B in new capital – read article…
• PH Gov’t to establish new agency for OFW assistance – read article…
• PH in talks with Pfrizer for Covid-19 pill procurement – read article…

Read more Inside Outsourcing Newsletters here:

1. The Outsourcing Week in Review: January 11, 2022
2. The Outsourcing Week in Review: January 18, 2022