Philippines’ abundance of national holidays: A blessing or a burden?

 

BY CHINO S. LEYCO

Aug 17, 2024 08:09 AM

  

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The Philippines, celebrated for its vibrant culture and warm hospitality, has a distinctive approach to national holidays, boasting over 20 official holidays each year. This places the country among the nations with the highest number of public holidays worldwide.

While these holidays offer valuable time off for employees and stimulate tourism, they also present notable challenges to the economy.

The Department of Labor and Employment (DOLE) and the Philippine Chamber of Commerce and Industry (PCCI) have expressed concerns about the sheer number of holidays, suggesting that Congress consider reducing the list to promote economic growth. 

Annually, there are about 22 regular holidays and around five special holidays, not counting local observances and work cancellations due to natural disasters.

Senate President Francis Escudero has joined the conversation, indicating openness to the idea of cutting back on national holidays.

Conversely, labor groups oppose any reduction, advocating for lawmakers to focus on understanding the challenges workers face.

Philippines vs. US and ASEAN countries 

When comparing national holidays, the Philippines stands out in the ASEAN region or even with the United States.

In the US, there are 11 federal holidays recognized nationwide. While these holidays are celebrated across the country, individual states often observe additional holidays that reflect their unique histories and cultures.

In the ASEAN region, the Philippines boasts a greater number of holidays compared to its peers. Vietnam, for instance, celebrates six national holidays. Among these, Tet Nguyen Dan, or Lunar New Year, holds particular significance, symbolizing renewal and family reunions.

Meanwhile, Malaysia celebrates eight national holidays that reflect its vibrant multicultural society. Key observances include Hari Raya Aidilfitri, marking the end of Ramadan, and Hari Raya Haji, which aligns with the Islamic pilgrimage. Additionally, each state in Malaysia may have its own holidays.

Indonesia, the largest archipelago in the world, observes 16 national holidays. The calendar begins with New Year’s Day, followed by Chinese New Year, which varies each year. Galungan, a Hindu celebration, holds special importance in the Balinese calendar, while Eid al-Fitr, marking the end of Ramadan, and Independence Day on Aug. 17 are widely celebrated events.

Singapore, known for its multicultural society, has 11 national holidays that reflect its diverse ethnic groups. Celebrations commence with New Year’s Day on Jan. 1, followed by Chinese New Year, Hari Raya Puasa, and Deepavali. National Day on Aug. 9 celebrates Singapore’s independence.

Celebrating culture and community

National holidays in the Philippines are deeply intertwined with the nation’s history and culture, encompassing a range of celebrations from religious observances to national commemorations. For many Filipinos, these holidays are not merely days off; they represent opportunities to reconnect with family, honor traditions, and engage in local festivities. The prospect of holiday pay further enhances the anticipation surrounding these days, allowing employees to earn extra income.

The tourism sector also reaps the rewards of this holiday-rich environment. During peak holiday seasons, domestic travel surges as families flock to their hometowns or popular destinations. This influx of travelers significantly boosts local economies, supporting businesses from hospitality to retail. Festivals and events tied to specific holidays further attract tourists, creating vibrant local economies that thrive on the celebration of culture.

Economic Challenges

Despite the benefits, the extensive holiday calendar raises critical economic concerns. For businesses, particularly small and medium enterprises, the impact of numerous non-working days can be profound. 

The additional costs associated with holiday pay, combined with reduced productivity, can strain financial resources. Employers often face challenges in maintaining workflow, and prolonged periods without regular operations can lead to decreased output and profitability.

Moreover, industries that rely on consistent performance, such as manufacturing and services, can find the disruption caused by holidays detrimental. Frequent breaks may hinder project timelines and complicate planning, leading to inefficiencies that can ripple through the economy.

Striking a Balance

To address these challenges, a balanced approach is essential. Policymakers could consider re-evaluating the holiday schedule, potentially consolidating certain holidays or introducing more flexible arrangements. Floating holidays, for example, would allow employees to choose their days off, ensuring that businesses can maintain operations while still respecting cultural traditions.

In addition, fostering a culture of productivity during holiday seasons is crucial. Businesses can implement strategies that encourage effective time management and planning, ensuring that work continues smoothly even amid celebrations. Training programs focused on operational efficiency during holidays could also empower employees to maximize productivity without sacrificing cultural observance.

Looking to the Future

As the Philippines navigates the complexities of its holiday calendar, it becomes increasingly important to engage in dialogue among stakeholders—employees, businesses, and government officials. By aligning the celebration of cultural heritage with economic sustainability, the nation can create a framework that honors its traditions while supporting growth.

The Philippines’ numerous national holidays are a testament to its rich cultural tapestry. However, the economic implications cannot be ignored.

By finding a harmonious balance between celebration and productivity, the Philippines can ensure that its holidays remain a source of joy and economic vitality for generations to come.

Inflation slows down further in April

Consumer prices ease to 6.6%

BY CHINO S. LEYCO

May 5, 2023 09:17 AM

  

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Inflation slowed down further to 6.6 percent in April from 7.6 percent in the previous month, the Philippine Statistics Authority reported on Friday, May 5.

Last month's inflation settled within the Bangko Sentral ng Pilipinas' forecast of 6.3 percent to 7.1 percent, but still higher than the 4.6 percent in April 2022.

April inflation rate brought the coutry's four-month average to 7.9 percent, still above the government's revised full-year outlook of 5.0 percent to 7.0 percent.

The end-April average is also well above 

NEDA okays new rules on foreign ownership

Foreigners can now fully-own key public services

BY CHINO S. LEYCO

Mar 20, 2023 10:25 AM

  

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AT A GLANCE

• The National Economic and Development Authority releases the Implementing Rules and Regulations (IRR) of Republic Act No. 11659 or the Amendments to the Public Service Act (PSA) on March 20, 2023.

• NEDA Secretary Arsenio M. Balisacan says the IRR has undergone extensive review and consultations with the public, legislators, relevant administrative agencies, and other key stakeholders.

• Upon its effectivity on April 4, 2023, foreigners will be allowed fully-own select industries in the country such as airports, railways, expressways, and telecommunications. 
• Balisacan says the PSA amendments would attract more foreign investments to the country, boost market competitiveness, foster innovation, and create high-quality jobs.

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The National Economic and Development Authority (NEDA) has released the implementing rules and regulations (IRR) of the amended Public Service Act (PSA) that allows full foreign ownership of some Philippine businesses.

In a statement Monday, March 20, NEDA Secretary Arsenio M. Balisacan assured that the IRR has undergone extensive review and consultations with the public, legislators, relevant administrative agencies, and other key stakeholders.

Belisacan also said all 21 government agencies, including NEDA, approved the IRR of the amended PSA, which will become effective on April 4, 2023.

“With the IRR already in place, we see this as a landmark reform that will further improve the country’s position as an ideal investment hub, which will help enhance employment opportunities and allow more Filipinos to benefit from more improved goods and services,” Balisacan said.

Upon its effectivity, the amendments to the PSA shall enable the liberalization of key public services by allowing full foreign ownership of businesses in select industries such as airports, railways, expressways, and telecommunications.

Prior to the approval of the amendments, foreign ownership in the aforementioned industries was limited to 40 percent.

Meanwhile, public service utilities such as electricity transmission and distribution, water and wastewater pipeline distribution system including sewerage, petroleum and petroleum products pipeline transmission systems, seaports, and public utility vehicles remain subject to the 60:40 foreign equity limitation.

Accordingly, the amendments also provide safeguard provisions to protect the country against national security concerns that may arise through any proposed merger or acquisition, or any investment in a public service.

“The PSA amendments form a critical part of our endeavor to attract foreign investments to the country to boost market competitiveness, foster innovation, and create high-quality jobs,” Balisacan said.

Further, relevant administrative agencies may issue guidelines and circulars for the effective implementation of RA No. 11659 and its IRR, provided that these remain consistent with Commonwealth Act No. 146 as amended, as well as with RA No. 11659 and its IRR.

“Together with complementary policies and measures… we are confident that the Philippines will be able to attract much-needed capital and technology, sustain its high-growth trajectory, and generate high-quality jobs enabling rapid poverty reduction in the next six years,” Belisacan said.

Jobless rate falls to new record-low since pandemic

by Chino S. Leyco

The country’s unemployment rate fell to 5 percent in September this year, a new record low after the full reopening of the economy since the pandemic.

The Philippine Statistics Authority (PSA) reported on Tuesday, Nov. 8, that the local labor market sustained its positive momentum with unemployment rate falling to five percent from 5.3 percent unemployment rate in August this year and 8.9 percent in September last year. 

Socioeconomic Planning Secretary Arsenio M. Balisacan said this translates to 2.5 million jobless Filipinos in September or 183,000 lower than the the 2.68 million with no jobs in the previous month. Balisacan also noted that the jobless level was largely at par with major Asian economies and is even lower compared to that of India, Indonesia, and China.

With the resumption of economic activities, an additional 2.2 million Filipinos joined the workforce, raising the country’s labor force participation rate to 65.2 percent in September from 63.3 percent year-on-year. 

With the decline in unemployment, employment rate improved to 95 percent, the highest recorded rate since January 2020.

The significant de-escalation of community quarantine restrictions translates to an employment creation of four million year-on-year, bringing the total employment to 47.6 million during the month.

“The recent survey results show the gains of the full reopening of our economy,” Balisacan said. 

“The government will leverage on this momentum by strengthening policy interventions and investing in innovation and technology systems geared toward generating higher-quality employment that provides adequate income for Filipino workers and their families,” he added.

Employment growth was observed across all sectors with the services sector accounting for 2.8 million more employed individuals, followed by the industry and agriculture sectors that registered an additional 682,000 and 461,000 additional employment, respectively.

However, the underemployment rate worsened to 15.4 percent from 14.2 percent in September, as more than 882,000 individuals sought to earn additional income with the spike in commodity prices due to inflation.

“Ensuring food security remains as our top priority. In the immediate term, government is providing targeted cash transfer as well as fuel and crop subsidies to help protect the purchasing power of Filipinos and reduce the incidence of invisible underemployment among low-income households,” Balisacan said.

In addition, Balisacan highlighted the need for effective implementation of emergency employment programs and other forms of assistance to immediately assist those who were hard-hit by the calamities.

“As we are expecting La Niña and near to above-normal rainfall conditions in the coming months, we need to boost our disaster resilience and climate adaptation measures,” he said.

Climate risks pose ‘significant threat’ to PH growth

by Chino S. Leyco

Climate change poses a significant threat to the country’s development that would potentially result in higher economic and human costs particularly for the poor, the World Bank said. 

Souleymane Coulibaly, World Bank lead economist said climate shocks would negatively affect the country’s economic growth by eroding natural and physical capital, as well as reducing labor productivity.

Coulibaly also said that the effects of climate change would weaken the country’s financial stability, alter domestic and external competitiveness and strain government finances. 

Ultimately, climate shocks would drag down the government’s poverty reduction effort, whose metrics mainly depend on economic growth and income distribution, Coulibaly noted.

Based on the World Bank estimates, the average output losses of the Philippines due to climate change will be at 3.2 percent of gross domestic product (GDP) by 2030 and could further rise to 5.7 percent by 2040.

Under the much worse scenario, the World Bank estimated that the costs of climate shocks could amount to 7.6 percent by 2030 and 13.6 percent by 2040. 

The World Bank estimates were derived using the country’s historical typhoon information.

“As illustrated by this figure, you can see the poor would suffer the most. The poorer the households, the more negatively the consumption is estimated to be affected by climate change,” Coulibaly said.

According to the World Bank economist, if no measures is taken to address climate change, the poverty rate will increase by nearly one percentage point by 2040, economic insecurity by 3.3 percentage points and inequality by 0.3 percentage point.

The financial sector will also be affected for a one percentage rise in the typhoon damage ratio, and the non performing loan ratio rising by an average of 0.66 percent in the same period, Coulibaly said.

“This is this significantly increases in your credit risks,” he said.

However, the good news is that adaptation actions can reduce the impact of climate change.

“Measures to adapt to climate change could reduce economic losses by around two-thirds,” Coulibay said. “The cost of climate adaptation is substantial, but easily outweighed by the economic benefits of reduced climate change.”

World Bank estimated that the cost of making vulnerable new infrastructure in the Philippines climate resilience is estimated to be about 0.6 percent of GDP annually.

Whilethe agriculture sector measures to boost climate resilience would cost the government about 0.06 percent of GDP per year.

“However, depending on the financing mechanism of adaptation investment, short run GDP could be boosted by 0.7 percent compared to the baseline without investment,” he added.  

World Bank raises PH growth outlook

by Chino S. Leyco, Manila Bulletin

The World Bank raised its economic growth outlook for the Philippines despite the damage from the Typhoon Karding onslaught, which the government said would not take the country off track of its full-year goal.

In the World Bank’s East Asia and Pacific October 2022 Economic Update, the Washington-based multilateral institution raised its gross domestic product (GDP) outlook for the Philippine to 6.5 percent.

The latest growth estimate was well above the 5.7 percent forecast previously released in April.

“A relaxation of border closures and the related recovery in tourism activity is expected to boost growth,” World Bank said in the report on Tuesday, Sept. 27.

“Output in Cambodia, the Philippines and Thailand is expected to surpass pre-pandemic levels of output in 2022,” the bank added.

World Bank’s new GDP projection, however, is at the lower-end of President Marcos’ full-year target of 6.5 percent to 7.5 percent, but aligned with the International Monetary Fund’s (IMF) downward revised forecast.

On Monday, the IMF cut the Philippine growth projection for this year to 6.5 percent from the previous of 6.7 percent in July.

But despite conservative protections of the World Bank and IMF, the National Economic and Development Authority is confident that the country could weather the impact of the recent typhoon that struck the country.

Socioeconomic Planning Secretary Arsenio M. Balisacan said the 6.5 percent to 7.5 percent economic growth target for 2022 is achievable.

“We are thankful Karding (Noru), which whipped on the belly of the Philippine economy (Luzon’s landmass), was not Ondoy, Ulysses, or Yolanda,” Balisacan twitted on Tuesday.

“Still, damage appeared considerable, though not likely at a level that would make us kiss goodbye to our growth target for this year,” he added.

The economy grew by 7.8 percent in the first half, faster than the target set by the Development Budget Coordination Committee, an inter-agency body that is tasked to set the country’s macroeconomic assumptions.

Based on initial estimates of the Department of Agriculture, damage and losses to the farm sector caused by Typhoon Karding were estimated at P141.38 million.

The initial assessment covers 16,229 hectares of land in the Cordillera Administrative Region, the Ilocos Region, Central Luzon, and Calabarzon, as of 12 noon on Monday, Sept. 26.

This translates to a volume of production loss of 5,866 metric tons of farm produce such as rice, corn, and high value crops, affecting 740 farmers.