President Marcos, Jr. announced he is open to amending the 1987 Constitution but is against any charter change covering land ownership and political term limits, at least for now. He said a good way to encourage investments in the country is to allow foreign entities to own firms, except in critical areas such as power generation, media, and other strategic areas.
NEDA calls for passage of bills on water, open access, fiscal reforms
NEDA is calling for the passage of several crucial measures at the 19th Congress which resumed its second regular session last January 22. These measures include the bills on the Department of Water Resources, Open Access in Data Transmission and the various fiscal reforms that seek to strengthen tax administration and broaden the tax base.
Go pushes reforms to address concerns
“While we have made significant strides to create a conducive environment for investments, there’s much work to be done for our country to be globally competitive,’’ OSAPIEA Secretary Federick Go said. Go said his office is working with Congress to bring back certainty in the country’s laws to assure investors of predictability and firm implementation of policies that protect their investments.
House panel greenlights changes to CREATE law
A House of Representatives panel restored the local tax on both local and foreign companies under proposed changes to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, as requested by Philippine President Marcos, Jr., according to the Ways and Means Committee chairman. Under the approved report, corporations will now have to pay 2% local tax — from the original 1.5% proposal — on top of a 20% income tax.
Hybrid integral to PEZA’s attraction: Panga
PEZA said the hybrid and flexible work arrangements afforded to registered business enterprises (RBEs) are an integral part of the agency’s red carpet treatment to investors. PEZA DG Tereso Panga said these schemes will help the agency retain locators in ecozones at a time when flexible working arrangements have become the new norm globally. This was in reaction to a Department of Justice opinion that essentially restricted incentives to RBEs that operate 100% on site ecozones.
ARTA aims for 10-minute business permit application process
According to ARTA Director General Ernesto Perez, their goal for this year is to reduce the processing time for business permit applications to just 10 minutes through the electronic Business One-Stop Shop (eBOSS) program. Perez said they are working in coordination with the Department of Information and Communications Technology and with the DILG to achieve this.
PPP law ‘upgrade’ simplifies private sector participation in development projects–Villafuerte
Senior lawmaker LRay Villafuerte said it is now simpler for local government units (LGU) to carry out massive projects in their respective localities as a result of President Ferdinand R. Marcos Jr.’s recent signing of a law upgrading the public-private partnership (PPP) programs to increase private investment. Under Republic Act 11966, LGU executives can start right away on PPP projects with private-sector partners as long as these do not require national government funding and have been endorsed by their local councils.
BOI gives green lane to P150 billion telco project
The Board of Investments (BOI) has approved a P150 billion Malaysian telecommunications infrastructure project for green lane processing, noting its role in introducing new technologies in the country. “Expecting an investment of approximately P150 billion in the coming years, EDOTCO plans a balanced rollout of 25,000 common telecommunications infrastructures,” the BOI said.
Philippines inflation remains an ‘urgent’ concern – finance minister
Philippine Finance Secretary Ralph G. Recto said inflation remains a “most urgent concern” and must be kept under control. “It is imperative that we find ways and means to reduce inflation,” Mr. Recto said. “I support what the monetary board is doing. Like I said, it’s data driven.”
DOF not rushing new taxes amid P4.3 trillion goal
The Department of Finance (DOF) is banking on a more efficient and streamlined tax system and better inflation to hit the state’s goal of collecting a record-high of P4.3 trillion in revenues this year, as it is tepid in pushing for new taxes this year due to inflation. Finance Secretary Ralph G. Recto stressed on Wednesday that the DOF will not push for new taxes this year as the Bureaus of Customs and Internal Revenue would depend on better performance to generate funds for the state.
Recto pushes for passage of refined DOF priority tax measures
Among the DOF priority measures are the Value-added Tax (VAT) on Digital Service Providers (DSP); the Imposition of Excise Tax on Single-use Plastics (SUPs); Package 4 of the Comprehensive Tax Reform Program (CTRP); the Rationalization of the Mining Fiscal Regime; and the Reform on the Motor Vehicle Users’ Charge (MVUC). The VAT on DSP seeks to level the playing field between local and foreign DSPs by clarifying that services provided by the latter in the country are subject to VAT.
BSP to prioritize modernization of Philippine banking sector this year
The Bangko Sentral ng Pilipinas (BSP) will focus on modernizing the banking industry this year and boosting the regulation of financial institutions, BSP Deputy Governor Chuchi G. Fonacier said. Fonacier noted that the central bank will launch initiatives this year to improve the stability of BSP-supervised financial institutions such as a national risk assessment on money laundering terrorism financing, boosting efforts to combat dirty money, and strengthening sustainability-related information architecture.
2023 PHL ‘hot money’ swings to net outflow amid high key rates
Data from the Bangko Sentral ng Pilipinas (BSP) showed foreign portfolio investments registered with the central bank through authorized agent banks posted a net outflow balance of $247.3 million (P14 billion) last year, from a net inflow of $886.7 million in 2022.
No new taxes this year, says Recto
Finance Secretary Ralph Recto said that he does not plan to introduce new taxes as elevated inflation remains a “most urgent concern.” “There are no plans of imposing additional new taxes. I think our first job is to collect what is on the table. That’s why we are planning with the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC) commissioners to improve efficiency,” Mr. Recto said.
Premiums collected from microinsurance up 20%
The total premiums collected under microinsurance policies as of the quarter of 2023 rose by 19.6 percent compared to the same period last year due to an across-the-board increase in premium collections, according to the Insurance Commission (IC). In a statement yesterday, the IC said premium collection by MBAs, life insurance companies and non-life insurance companies as of end-September 2023 amounted to P10.16 billion, up from the P8.49 billion premiums collected during the same period last year.
Businesses aren’t doing enough to address green skills shortages — report
Businesses are failing to tackle a shortage of green skills among workers, risking delays in the transition to a lower carbon economy, a report by Economist Impact and Spanish renewable energy giant Iberdrola shows. In a survey of 1,000 business leaders across nine countries, only 55% of them have put in place, or plan to, programs for their workers to get these skills. Estimates by the International Energy Agency show that clean energy could create 30 million new jobs by 2030, while 13 million jobs are seen at risk in industries tied to fossil fuels.
Renewable energy projects rose by 26% in 2023 — DoE
Renewable energy (RE) commercial projects with awarded service contracts increased by 26% in 2023, led by solar technology, according to the Department of Energy (DoE). Data from the DoE released on Tuesday showed that RE projects totaled 1,220 last year with a potential capacity of 134,813.79 megawatts (MW), higher than the 965 recorded in 2022 with a capacity of 80,396.61 MW. Public investment analyst Terry L. Ridon attributed the increase in RE projects to an improved business climate, commitment by DOE to a better energy mix in the medium term, and lower costs of building RE facilities compared to coal and gas.
AI eyed to address energy issues
A Japanese company is offering its services for the wider use of artificial intelligence in the Philippine energy sector. Patrick Aquino, Department of Energy (DOE) director of the Energy Utilization Management Bureau, announced SUStech Inc. is offering a technology that can help predict power plant issues thereby avoiding unexpected shutdowns with 92 to 94 percent accuracy in its projections. DOE undersecretary Felix William Fuentebella noted the agency must study the implications of using the system on the electric bills of consumers.
IFC to invest $15M in SEA clean energy fund
The IFC is investing $15 million (P849 million) in a fund that targets clean energy investments in the Philippines, Indonesia and Vietnam, the World Bank Group member said.The financing will support the Southeast Asia Clean Energy Fund II, which is managed by Singapore-based fund manager Clime Capital, it said. The fund will invest in utility-scale solar, wind and energy storage, in addition to helping businesses go to scale in areas ranging from rooftop solar, energy efficiency, electric mobility and grid management.
IT-BPM industry eyes 1.84 million jobs this year
The Information Technology and Business Process Management (IT-BPM) is targeting to exceed 1.84 million jobs this year. According to Information Technology & Business Process Association (IBPAP) president and CEO Jack Madrid, the IT-BPM closed 2023 with 1.7 million direct employment—an eight percent increase from the previous year—and over $35 billion worth of revenues. “And in 2024, I have more good news, we project to grow another seven to eight percent. So we should cross 1.8 million jobs, in fact 1.84 million, and $39 billion in revenue for 2024,” Madrid said.
Infra needs bloated PH foreign borrowings in 2023
Foreign borrowings by the Marcos administration that had been approved by the Bangko Sentral ng Pilipinas (BSP) jumped 40.36 percent in 2023 compared with the previous year, with infrastructure projects receiving most of the fresh funds from new external debt. In a report released on Monday, the BSP said the Monetary Board (MB) allowed $14.49 billion in public sector foreign borrowings last year, higher than the $10.32 billion approved in 2022 and adding to the government’s growing debt pile, which bloated to P14.51 trillion as of November last year.
P4B port to increase trade in Mindanao
The Department of Agriculture (DA) said the completion of the P4-billion Lagonglong Port in Misamis Oriental by March 2025 is expected to increase trade capacity in Mindanao and will enhance logistical capability in the region. “This port, once finished, I believe will reduce feed costs by at least 2.5 percent or as much as 5 percent. It will reduce cost of fertilizers also by 5 percent, maybe, or as much as 10 percent, depending on the price,” DA Secretary Francisco Laurel Jr. noted.
Philippines urged to improve broadband infrastructure
The Philippines will need to pursue and implement reforms aimed at encouraging competition and investments to improve its broadband infrastructure, according to a World Bank study. It said the country’s poor broadband infrastructure is a result of the outdated policy environment that has fostered weak competition and limited investments in connectivity infrastructure in rural areas. For the World Bank, the Open Access in Data Transmission bill is a viable starting point for reforms.
Digitalization boosts LGU tax take despite pandemic
Despite the economic disruptions caused by the pandemic, local government unit (LGU) revenue collection rose by 400 percent due to their adoption of ease of doing business reforms, including digitalization, according to the Department of the Interior and Local Government (DILG). DILG Secretary Benjamin C. Abalos Jr. disclosed LGU collections from taxes, fees and charges reached 208 billion Php in 2022 from just 50 billion Php in 2018. Abalos said the EODB also helped raise the number of registered businesses from 1.3 million to 4.7 million.
BSP to further ease FX transactions
The BSP is considering further easing documentary requirements for foreign exchange (FX) transactions through changes to its FX manual. Under a draft circular posted on its website, processing of foreign currency loans, inward investments and other FX transactions filed with the BSP-International Operations Department will be free of charge.
Plastic makes up 90% of Manila Bay litter — monitoring survey
Around 90% of the 12 million pieces of marine litter collected from Manila Bay's coastline were plastic, a new study revealed, highlighting the urgent need for stricter policy implementation and an integrated marine waste management plan.
Recto backs insurance for OFWs
The availability of insurance products should extend to overseas Filipino workers (OFWs), according to Finance Secretary Ralph Recto – indicating the possible lifting of restrictions in the current framework. Recto said the agency must strive to further boost the sector and improve social protection in the country.Along this line, he said the IC should strengthen financial literacy among Filipinos.
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