MANILA – Philippine President Rodrigo Duterte signed into law key economic measures that are seen to help lower rice prices, strengthen the central bank and bolster state revenues.
Duterte signed a bill that would remove caps on rice imports and boost supply of the staple grain, according to executive secretary Salvador Medialdea. The measure is expected to help cool inflation, which in 2018 accelerated to the fastest pace in nine years and triggered one of the most aggressive monetary tightening responses in Asia.
The president approved amendments to the central bank charter that would expand its powers and pave the way for the injection of additional government capital. He also agreed to a partial tax amnesty. The measures will take effect 15 days from their publication in newspapers.
Duterte’s economic officials expect the rice law to shave about one percentage point off annual inflation. A shortage of the grain coupled with elevated global oil prices and higher taxes boosted the inflation rate to 6.7 percent in September and October. Consumer price gains have eased since then.
Of the almost three dozen bills awaiting Duterte’s signature, six measures were acted upon on Friday, according to Medialdea.
Here are some of the highlights:
- Amendments that will give the Social Security System — the fund that provides benefits to private workers — more power to decide on monthly contributions of members while expanding the coverage of overseas Filipino workers
- New central bank charter will boost its capitalization to 200 billion pesos ($3.8 billion) from 50 billion pesos, and expand its regulatory powers
- Duterte approved the estate and delinquent tax amnesty but vetoed the general amnesty, said Finance Secretary Carlos Dominguez
- A law that will give discounted rates for political advertisements was also signed by Duterte
- Duterte vetoed Congress’ proposal to provide a trust fund for coconut farmers. (Bloomberg)
