The number of travelers who go through the Manila International Airport (MIA) have grown from 32 million to 50 million per year, according to Department of Transportation (DOTr) Secretary Jaime J. Bautista.
“Pag pupunta ka rito sa MIA ay makikita mo na napakacongested. Mahaba ang pila, kung minsan walang maupuan, [MIA is really congested. The lines are long, and the seats are insufficient],” he said in a televised interview with government-owned PTV4.
Airport users in recent months took to social media to share their dismay about broken travelators and escalators at Ninoy Aquino International Airport (NAIA) Terminal 3.
Jusko NAIA, nung umuwi ako nung November 2023 at nung January 2024, sira na toh.
Not to hate pero nakaka dismaya talaga sa Naia T3. Nakaka tatlong labas nako ng bansa this year pero hanggang ngayon, Sira parin lahat ng escalator sa arrival. 🥲 Para bang tumigil na yung pinas sa pag upgrade. Na stuck na sa 1990’s lahat ng facilities. 😢 pic.twitter.com/tyq3CgIWuw
“As early as now nagstartna mag-order ng mga parts ang winning bidder, [As early as now, the winning bidder has already started ordering parts for the renovation,”] Mr. Bautista said on the improvement and repair of elevators, escalators, and travelators.
He added that these must be accomplished by Christmas because of the expected volume of passengers in Terminal 3.
The SMC-SAP & Co. Consortium, consisting of San Miguel Holdings Corp., RMM Asian Logistics, Inc., RLW Aviation Development, Inc., and Incheon International Airport Corp.,was awarded the P170.6-billion contract to rehabilitate NAIA.
“By early next year, dapat makakita na tayo ng reform, ng improvement [we should already see reform and improvement],” Mr. Bautista said.
Improving Ports
Apart from airport rehabilitation, Mr. Bautista also discussed improvement plans for the maritime industry.
“Maraming improvements na nagawa sa ating mga ports [A lot of improvements have been done for our ports].There are like 700 ports all over the country,” he said.
“Dapat ayusin para maging efficient ang operations ng mga barko at maging safe actually. Safety, efficiency, and comfort [We need to fix it to create more efficient, safe, and comfortable ship operations].”
Mr. Bautista said that green operations are also needed to lessen carbon emissions, not just in ships but also in other transport sectors. – Almira Louise S. Martinez
MANILA – The Philippines has turned down offers from the United States to assist operations in the South China Sea, after a flare-up with China over missions to resupply Filipino troops on a contested shoal, its military chief said.
Tensions in the disputed waterway have boiled over into violence in the past year, with a Filipino sailor losing a finger in the latest June 17 clash that Manila described as “intentional-high speed ramming” by the Chinese coast guard.
The US, a treaty ally, has offered support but Manila prefers to handle operations on its own, Armed Forces Chief General Romeo Brawner told Reuters late Thursday.
“Yes, of course, they have been offering help and they asked us how they could help us in any way,” he said.
“We try to exhaust all possible options that we have before we ask for help.”
Manila and Washington are bound by the 1951-Mutual Defense Treaty (MDT), a military pact that can be invoked in the case of armed attacks on Philippine forces, public vessels, or aircraft in the South China Sea.
Confrontations between the Philippines and China in Asia’s most contested waters have increased in frequency over the past year as Beijing has pressed its claim to the waterway and Manila continued missions to bring supplies to soldiers living aboard a rusty, aging warship that it grounded on a contested shoal.
Some observers, including former deputy US National Security Adviser Matt Pottinger, have called for direct US naval support for the resupply missions.
But Philippine National Security Adviser Eduardo Ano said the Philippines wanted them to be a “pure Philippine operation”.
“This is our legitimate national interest, so we don’t see any reason for them (the US) to come in,” Mr. Ano told Reuters.
Mr. Ano, who spoke to his US counterpart Jake Sullivan last month to discuss shared concerns over China’s “dangerous and escalatory actions”, said the MDT was “far from being invoked”.
“We (the Philippines and China) agreed that there will be some easing tension, but we will assert our rights, we will not compromise our national interest, and we will continue to fight and claim what is ours,’ Mr. Ano said.
Neither official specified what support the US had offered.
Greg Poling, a South China Sea expert at Washington’s Center for Strategic and International Studies think-tank, told Reuters he believed the US was open to naval escorts for the resupply missions to the stranded vessel. Washington has already provided some limited support, he said.
A Philippine official said last year Manila was consulting the US Army Corps of Engineers on how best to stabilize the BRP Sierra Madre, which was grounded on the contested Second Thomas Shoal, Mr. Poling said, while US aircraft have been filmed providing overwatch of the ship on multiple occasions.
The Permanent Court of Arbitration in the Hague ruled in 2016 that Beijing’s expansive South China Sea claims via its nine-dash line had no basis under international law, but that has not stopped China, which rejects the ruling, from being more assertive in the waterway.
It has deployed coast guard vessels to patrol those areas, alarming the Philippines, rival Southeast Asian claimants and other states operating in the South China Sea, including the US, which is wary about China’s growing military power and territorial ambition.
Military chief Brawner said the United States’ offer of support, made in discussions at his level, was not a direct response to the June 17 incident but rather a reflection of the enduring military alliance between the two countries.
“It is really because of our being treaty allies, so that offer has been available to us for a long time not just because of the incident,” Mr. Brawner said.
“But we did not ask them yet because as per the orders of our president we have to rely on ourself first.”
The Pentagon did not immediately respond to a request for comment. Thursday was a federal holiday in Washington for the United States’ Independence Day.
While China claims nearly all the South China Sea, a major shipping lane with about $3 trillion in trade passing through it annually, Vietnam, Taiwan, Malaysia and Brunei also claim parts. – Reuters
(From L-R) News5 Anchor Jester G. Delos Santos (moderator and host); Marlon Cruz of Globe Business; Miguel Geronilla of GCash; Raymond Reglos of ISACA Manila Chapter; Renne Barcelona of IBM Consulting Philippines; and Catherine Ann Paleracio of Tonik during the first panel discussion of the BusinessWorld Insights forum held last June — Photos by Arjale Jayrie G. Queral and Jayson John D. Mariñas
Recent BusinessWorld Insights looks through best practices for safeguarding businesses in the digital space
By Mhicole A. Moral, Special Features and Content Writer
As organizations increasingly rely on digital infrastructure, the threat landscape continues to expand, demanding proactive and adaptive strategies to safeguard sensitive data and critical systems.
According to a report published by IT Governance, a total of 35,900,145,035 known records have been breached in 9,478 publicly disclosed incidents worldwide as of May 2024. Another report by the International Monetary Fund (IMF) found that the risk of extreme losses from cyber incidents has more than quadrupled since 2017, reaching $2.5 billion. These incidents can undermine trust in the financial system, disrupt critical services, and cause spillover effects to other institutions, posing serious concerns for financial stability.
Ransomware attacks, for instance, have doubled each year since 2019, according to McKinsey & Company. During the early months of the COVID-19 pandemic, ransomware attacks spiked by 148%, while phishing incidents increased by 510%.
Artificial intelligence (AI)-driven attacks are also adapting and evolving, making traditional cybersecurity measures less effective. A 2023 report from McKinsey highlights that 53% of organizations acknowledge AI-related cybersecurity risks, yet only 38% are actively working to mitigate these threats.
Experts have noted that businesses and individuals must stay vigilant and proactively address the evolving cyber threats to protect their assets, maintain trust, and safeguard the broader economic and financial system during the BusinessWorldInsights forum, with a theme “Ensuring Business Growth through Cybersecurity,” last June 25 at Dusit Thani Manila.
Securing the future of cybersecurity in the country
In his keynote address, Department of Information and Communications Technology (DICT) Assistant Secretary Renato “Aboy” A. Paraiso said that the Philippines has been active in strengthening the country’s capability to secure transactions in cyberspace, stating the importance of the implementation of the National Cybersecurity Act, the implementation of minimum standards, and capacity building initiatives.
“Through Executive Order Number 58, Series of 2024, the National Cybersecurity Plan of 2023 to 2028 was adopted as the whole-of-nation approach the blueprint for bolstering the national cybersecurity defenses,” he mentioned. “The DICT provides the frontline services including the National Security Operations Center or the NSOC. The NSOC operates around the clock to detect and respond to incidents which the dedicated analysts working on a 24/7 shifting schedule, monitoring the assets of all connected agencies and departments.”
According to the Assistant Secretary, NSOC has been proactive in detecting and resolving cybersecurity incidents in the Philippines. To date, the center has handled 3,925 incidents, successfully mitigating and closing 3,210 of these cases, which equates to an 82% resolution rate. Most of these incidents involved breaches within government agencies and local government units (LGUs), with an average resolution time of 30 days.
In December 2023, the DICT launched Project SONAR, an initiative aimed at securing online networks through comprehensive assessment and response mechanisms. According to Mr. Paraiso, Project SONAR performs monthly scans to flag and hunt down vulnerabilities, detecting exposures and misconfigurations in publicly accessible government websites and web applications.
Department of Information and Communications Technology (DICT) Assistant Secretary Renato “Aboy” A. Paraiso delivered the keynote address during the BusinessWorld Insights forum last June at Dusit Thani Manila.
“The NCSP (National Cybersecurity Plan) vision is [to create] a trusted, secure, [and] reliable cyberspace for every Filipino.” Mr. Paraiso said. “[It] focuses on three outcomes: First, proactive protection and security for the state and its people in cyberspace. Second, increasing cybersecurity workforce capabilities. Third, strengthening the cybersecurity policy framework.”
The first outcome emphasizes the protection of the state and its citizens in cyberspace. The plan includes the development of a secure government network infrastructure and the reorganization of the cybersecurity bureau. These measures are aimed to ensure proper threat monitoring and response, particularly within government institutions.
Mr. Paraiso added that the second outcome focuses on training and capacitating the workforce, aiming to ensure the public and private sectors have an adequate number of skilled cybersecurity professionals.
“I think the most important part of the vision that we are currently undertaking in the implementation of the National Cybersecurity Plan is the upscaling of our workforce,” he emphasized. “There is a great disparity between the salaries of those in government and in the private sector. So, once we train our workforce in the government, most of the time they leave because of the opportunities outside. So, it’s important for us not only to upskill but also have that capacity [to retain] the workforce.”
The third outcome aims to solidify the cybersecurity policy framework. The DICT, as mentioned by Mr. Paraiso, is committed to ensuring the effective implementation of existing laws, rules, and regulations related to cybercrime and cybersecurity. A key component of this outcome is the proposed Cybersecurity Act.
The Cybersecurity Act, currently pending before Congress, highlights the role of communication and information in nation-building. It emphasizes the protection of life, liberty, and property, and the promotion of general welfare. The bill aims to combat cybersecurity offenses through detection, investigation, prosecution, and international cooperation.
“Hopefully, it gets passed as part of the framework of the National Cybersecurity Plan. This act entails that we should adopt the just measures to improve our cybersecurity, not only posturing, but our cybersecurity capabilities as well.”
Enhancing cybersecurity for businesses
Industry leaders emphasized the importance of emerging technologies and strategies in enhancing cybersecurity, highlighting the evolving nature of threats and the need for proactive defenses.
Marlon Cruz, director for Business Development at Globe Business, said that the shift towards hybrid work models, accelerated by the pandemic, introduced new vulnerabilities that necessitates a comprehensive inspection of all network traffic.
“Everything inside the perimeter used to be trusted. We only inspected the north and south traffic. But with today’s business evolution, adopting software as a service (SaaS) and moving towards cloud infrastructure, we cannot trust what’s inside anymore. We must inspect east and west traffic, too,” he said during the forum’s first panel discussion.
As a key player in the digital financial sector, GCash emphasized trust and security as fundamental components of their mission.
“GCash is in the business of financial inclusion and financial health improvement,” said GCash Chief Information and Security Officer Miguel Geronilla. “That, itself, is a noble task, but we’re also in the business of trust and security because you wouldn’t pour your money into an [application] or a financial institution where it’s not safe and secure.”
Similarly, an official from Tonik Digital Bank, Inc. shared that there is a growing number of cyberattacks targeting businesses, especially financial institutions.
“We need to assess what we can do more, and what areas to look into, which entails looking at emerging technologies. Even cyber attackers are using advanced methods to execute their attacks. AI, for instance, may be beneficial to companies, especially if it’s aligned with their business needs and models,” said Catherine Ann Paleracio, chief information security officer (CISO) of Tonik.
IBM Consulting Philippines Cybersecurity Leader Renne Barcelona also emphasized that cybersecurity should be considered integral to economic stability and growth.
“Our country’s water supply, electrical grid, and even payroll systems for private corporations are all vulnerable. A prolonged attack on any of these could paralyze operations and lead to severe economic consequences,” he explained. “Consider the impact of losing electrical supply for seven days or the grounding of all international flights due to a cyberattack. These scenarios underline the necessity of robust cybersecurity measures. The potential for disruption makes cybersecurity a key enabler of business continuity and economic stability.”
Meanwhile, a representative from ISACA, a nonprofit global organization dedicated to the development, adoption, and use of globally accepted information security standards and practices, stressed the need for businesses to protect their digital infrastructures as they integrate technology into their operations.
“Technology is not just an enabler of business nowadays; it is already an integral part of it. Our operations are increasingly intertwined with application systems that provide competitive advantage to our organization. The data and information out of these systems give us those insights that are needed for intelligent business decision making,” mentioned Raymond Reglos, president of ISACA Manila Chapter.
“But aside from us,” he added, “the malicious actors also wanted the same information. Therefore, the need to protect our data or infrastructure or application systems. Also, data privacy has never been more urgent.”
Moreover, cyber threats have evolved from isolated incidents to a sophisticated ecosystem of cyber criminals.
“Gone are the days that hackers deface websites for fun. Today, it’s about gaining something tangible,” Mr. Reglos highlighted.
To effectively counter these increasing threats, businesses must harness emerging advanced technologies and improve their digital literacy.
For its part, Globe Business has been proactive in building robust cybersecurity measures. “We started our Cybersecurity Initiative Blueprint in 2014, built our infrastructure in 2015, and operationalized our Security Operations Center (SOC) in 2016,” said Mr. Cruz.
By 2018, Globe had centralized its SOC, extending its capabilities to the Globe Group and Ayala Corp. He also mentioned that the continuous optimization efforts of the company are supporting Globe’s transition from a telco company to a ‘TechCo’ company.
“We’re automating our processes to create cybersecurity policies effectively. As we evolve from a telco to a tech company, we aim to improve our awareness and build a culture of cybersecurity,” Mr. Cruz stated.
Globe Business also aims to help enterprise clients understand their cybersecurity maturity. As the Globe Business Director mentioned, “We assess whether clients are reactive, proactive, or adaptive in their cybersecurity strategies. There’s no foolproof solution, but as clients mature in their cybersecurity practices, they become more resilient.”
Ms. Paleracio of Tonik highlighted the capability of artificial intelligence to process vast amounts of data and automate tasks critical for security analysts.
“AI will be a powerful tool moving forward. because of its capability to process large [amounts] of data and automate things that are helpful to security analysts. But just like any security tool, we need to customize it based on the needs of the organization,” she added.
The Tonik executive also emphasized the critical issue of manpower shortages in cybersecurity, stressing the importance of continuity through effective succession planning. This approach ensures that there are skilled professionals ready to step into key roles, mitigating the impact of staffing challenges on cybersecurity operations.
Meanwhile, IBM’s Mr. Barcelona reiterated the fundamental objectives of cybersecurity: Confidentiality, Integrity, and Availability (CIA).
“One of the primary goals of cybersecurity is to ensure that there will be zero data breach incidents happening every day, because a breach incident will result in business downtime or business disruption,” he said.
Mr. Geronilla of GCash added that since cybersecurity is a shared responsibility, businesses must educate consumers alongside including them in digital space, which the fintech company does by educating them in managing their digital finances. He also emphasized the importance of integrating cybersecurity into the core of business strategy, ensuring that cybersecurity measures align with business objectives and safeguard against evolving threats.
Supporting this statement, Mr. Reglos said, “As we embrace innovation, we must also cultivate a culture of continuous learning, awareness and adaptation, ensuring that we are only not prepared for the challenges of the day, but also equipped to tackle the uncertainties of tomorrow.”
“The key to security is embedded in the word itself: ‘you are it.’ Security is everyone’s responsibility. It’s everyone’s task to secure our data infrastructure,” he added.
Safeguarding digital infrastructure through policies
(From L-R) BusinessWorld Multimedia Producer Patricia B. Mirasol (moderator and host); Atty. Aubin Arn Nieva of the National Privacy Commission; DICT Assistant Secretary Renato “Aboy” A. Paraiso; and Alex Bernardino of ePLDT and PLDT Enterprise during the second panel discussion of the BusinessWorld Insights forum held last June
Stakeholders can collaboratively mitigate cyber threats and safeguard the nation’s digital future, supported by proactive policies and public-private partnerships.
According to National Privacy Commission (NPC) Director of Data Security and Compliance Office, Atty. Aubin Arn Nieva cybersecurity efforts must begin with a strong foundation of digital citizenship.
“Strengthening cybersecurity cultivating it from the roots. It does not begin with the intricate software and hardware that we employ in the organization. It begins with the individual. Cybersecurity begins with the person accessing cyberspace,” he said during the second panel discussion of the forum.
At an organizational level, the NPC director stressed the importance of strong corporate governance as the foundation for effective data management and cybersecurity practices. For instance, a robust governance framework not only ensures compliance with regulatory requirements but also fosters a proactive approach to cybersecurity. This includes implementing dynamic policies that adapt to evolving threats and technologies, thereby safeguarding sensitive data and minimizing vulnerabilities.
Alex Bernardino, field CISO and head of Enterprise Consulting Practice of ePLDT and PLDT Enterprise, noted that the growth of the cybersecurity industry has largely been driven by the increasing sophistication of cyber adversaries who view cybercrime as a lucrative business.
Acknowledging this, he emphasized the importance of existing legislative frameworks such as the Cybercrime Prevention Act of 2012 and the Data Privacy Act. However, he mentioned that the effective implementation and strict enforcement of these laws are crucial to combat cyber threats effectively.
“The implementation should be in higher on hand. We have to pursue. We have to implement [the law] in a strictest, and penalize the offenders and the violators. I think that’s the missing portion now,” he added.
At ePLDT, a proactive approach to cybersecurity involves rigorous adherence to privacy standards. Every project, both internal and external, undergoes a Privacy Impact Assessment (PIA) to ensure the security of customer data and internal information.
Beyond technological measures, Mr. Bernardino emphasized the importance of community awareness and education in cybersecurity.
“The sad reality here is that cybersecurity is affecting our daily lives. So, we need to really tackle this seriously in the national level, and also in the private sector. A close collaboration is really a need right now to be able for us to protect the Philippine cyberspace.”
The discussion also highlighted the role of legislation in fostering a secure digital ecosystem, essential for attracting foreign investments and ensuring data protection. Key enactments, such as the Cybersecurity Act of 2012 and the Data Privacy Act of 2012, address regulatory gaps and aim to instill confidence among investors.
Despite these advancements, challenges persist, particularly in rural areas where technological infrastructure remains limited. According to Atty. Nieva, disparities between urban and rural connectivity, with varying levels of mobile network technology (2G, 4G, and 5G), pose unique cybersecurity challenges.
“When 5G was introduced to us years ago, there was an increase of cyberattacks because the latency was decreased. Because the data, the transference of data, was more readily available. And so, these cyber criminals are able to exploit it,” he added.
According to DICT’s Mr. Paraiso, the Philippines has a unique environment in addressing cybersecurity policy since the government actively seeks input from industry stakeholders.
Dialogues with private sector representatives help shape legislative initiatives. These interactions inform policymakers about the specific challenges faced by businesses, which are then conveyed to legislative bodies like Congress and the DICT.
Meanwhile, PLDT Group, as one of the largest telecommunications providers in the Philippines, operates under the recognition that any breach affecting their network could have far-reaching consequences for the entire nation. Acknowledging this responsibility, Mr. Bernardino said that the company has implemented rigorous cybersecurity practices to mitigate risks and ensure uninterrupted service delivery.
The PLDT official also emphasizes the importance of cyber awareness among its stakeholders, working closely with the DICT to educate the public and enhance cybersecurity literacy.
PLDT’s cybersecurity strategy focuses on collaborating with key government bodies like the DICT and NPC. According to Mr. Bernardino, PLDT actively participates in the Public Sector Advisory Council, providing advice on cybersecurity and digital transformation initiatives essential for the country’s development.
Moreover, in cases of cyber incidents involving their customers, PLDT cooperates closely with the NPC to swiftly address and resolve issues while upholding data privacy regulations.
Mr. Bernardino also stresses the necessity of due process in handling sensitive data. They adhere strictly to legal requirements, requiring court orders before disclosing customer information to law enforcement agencies.
According to Atty. Nieva of NPC, many users lack sufficient understanding of the risks associated with online activities.
“Common people don’t know what they are doing when they get online. They cannot see data; they cannot understand data, and that’s why they are neglectful in handling it online,” he said.
This gap in awareness poses significant challenges as it exposes individuals and organizations to various cyber threats.
“The government has a responsibility to protect the people, even if the people don’t know what they are doing. That’s why we are heavy in the National Privacy Commission, focusing our efforts on data protection in the countryside.”
Meanwhile, Mr. Paraiso mentioned that policies should not only be robust but also agile enough to respond to emerging threats, especially since the pace of technological advancement has outstripped the ability of regulatory frameworks to keep up.
“It’s really hard, a law has been passed, there is a new challenge. We’re still debating, but it’s over because the challenge has already shifted,” he explained. “Whatever laws we craft and whatever policies we adopt should be adaptive, they should be flexible.”
Similarly, Mr. Bernardino of PLDT emphasized the inevitability of data breaches nowadays and urgent need for proactive measures and resilient policies.
“In cybersecurity, it’s no longer a matter if you’re going to be breached or how you’re going to be breached. It’s only a matter of when. Now, I want to highlight that because organizations should be ready to respond when that happens,” he explained.
“We should be talking about how we can respond as a government agency, as a private institution. We should have learnings here. The learnings we gather should be part of our best practices as an organization and as a government agency, combined with knowledge and experience.” Mr. Bernardino said in Filipino.
Amidst challenges, Atty. Nieva mentioned that while technological advancements benefit society, policymakers must ensure that regulatory frameworks adequately protect personal data.
“These emerging technologies are good for the people, but we have to balance the free flow of information with the inherent right of the people to privacy,” he stated.
In closing, Mr. Paraiso reassured the public of the government’s commitment to cybersecurity.
“I’d like to assure the public right now to trust government. We have a working function at the DICT. That way, we are very, very confident.”
“In a whole-of-nation approach, the public sector and the private sector would collaborate on how to solve [cybersecurity] problems and adapt together to solve these problems,” he added.
This BusinessWorld Insights was in partnership with GCash and Globe Business; and is sponsored by Huawei, ePLDT, PLDT, and PLDT Enterprise; with the support of the Asian Consulting Group, American Chamber of Commerce of the Philippines, British Chamber of Commerce of the Philippines, Bank Marketing Association of the Philippines, Management Association of the Philippines, Philippine Chamber of Commerce and Industry, Philippine Franchise Association, Philippine Retailers Association, and official media partner The Philippine STAR.
People line up to buy rice, priced at P29 per kilo, at a Kadiwa market in San Andres, Manila, July 5. Rice inflation eased to 22.5% in June from 23% a month ago, marking the third straight month of slower rice inflation. Photo by Edd Gumban, The Philippine Star
by Luisa Maria Jacinta C. Jocson, Reporter
Headline inflation eased to 3.7% in June after four straight months of acceleration due to a slower rise in electricity and transport costs, the Philippine Statistics Authority (PSA) said.
The PSA on Thursday reported that the consumer price index (CPI) rose to 3.7% year on year in June, easing from 3.9% in May and 5.4% in the same month a year ago.
This fell within the Bangko Sentral ng Pilipinas’ (BSP) 3.4-4.2% forecast for the month but was below the 3.9% median estimate in a BusinessWorld poll of 14 analysts.
This also marked the seventh straight month that inflation settled within the BSP’s 2-4% target band.
The June print was the slowest pace in four months or since the 3.4% clip in February. It also matched the 3.7% print in March.
Core inflation, which excludes volatile prices of food and fuel, was steady at 3.1% in June but slowed from 7.4% a year earlier.
For the first six months of 2024, headline inflation averaged 3.5%, slightly higher than the central bank’s 3.3% full-year forecast.
“The latest inflation outturn is consistent with the BSP’s latest outlook that inflation will settle within the target range for 2024-2025 with inflation expectations remaining well-anchored,” the Bangko Sentral ng Pilipinas (BSP) said in a statement.
National Statistician Claire Dennis S. Mapa attributed cooling inflation to the slower increase in the housing, water, electricity, gas and other fuels index.
The index rose by 0.1%, slower than the 0.9% in the previous month and 5.6% a year ago.
“The main contributor to the easing in the inflation of housing, water, electricity, gas and other fuels is due to the faster decline in electricity prices, which had -13.6% inflation,” Mr. Mapa said in mixed English and Filipino.
Electricity inflation contracted by 13.6% from the 8.5% decline in May and 10.3% increase a year earlier.
In June, residential customers served by Manila Electric Co. saw a P1.9623 per kilowatt-hour (kWh) reduction in their electricity bills.
This after the Energy Regulatory Commission ordered all distribution utilities and electric cooperatives to implement a staggered collection of charges on their purchases from the Wholesale Electricity Spot Market in May.
Mr. Mapa also noted the slower annual growth in the transport index to 3.1% from 3.5% a month ago, mainly due to decelerating gasoline prices.
The PSA also attributed the inflation downtrend to slower annual increments in the alcoholic beverages and tobacco commodity group (3.8% from 4.2% a year ago); clothing and footwear (3.2% from 3.4%); furnishings, household equipment and routine household maintenance (2.8% from 3.1%) and personal care, and miscellaneous goods and services (3.2% from 3.4%.)
“When it comes to the main contributors to overall inflation this June, the top commodity group is food and non-alcoholic beverages, which had a 61.9% share,” Mr. Mapa said.
The heavily weighted food and non-alcoholic beverages index accelerated to 6.1% in June from 5.8% in May but eased from 6.7% in the same month in 2023.
Food inflation alone quickened to 6.5% in June from 6.1% in the previous month.
Rice inflation eased to 22.5% from 23% a month ago, marking the third straight month of slower rice inflation.
Rice accounted for 45.2% of overall inflation, equivalent to 1.7 percentage points (ppt).
PSA data showed that the average price of a kilo of well-milled rice declined to P55.96 in June from P56.06 in May. On the other hand, prices of regular milled rice rose to P51.07 in June from P51.03 in May and special rice went up to P64.56 in June from P64.41 in the previous month.
Food inflation was also driven by the faster rise in vegetables, tubers, cooking bananas and pulses (7.2% from 2.7%) and meat and other parts of slaughtered land animals (3.1% from 1.6%).
INFLATION FOR BOTTOM 30%
Meanwhile, the inflation rate for the bottom 30% of income households accelerated to 5.5% in June, from 5.3% in May but slower than the 6.1% a year ago.
In the January-June period, the inflation rate for the bottom 30% averaged 4.8%.
In the National Capital Region (NCR), inflation eased to 2.3% in June from 3.1% a month ago.
Inflation in areas outside NCR averaged 4.1%, unchanged from the previous month.
The BSP said that the risks to the inflation outlook have tilted to the downside for this year and 2025 due to the tariff reduction on rice imports.
President Ferdinand R. Marcos, Jr. last month signed Executive Order No. 62, which slashed tariffs on rice imports to 15% from 35% previously, until 2028.
The measure is expected to bring down retail rice prices by P6 to P7 per kilo, the Agriculture department said earlier.
“The reduction in the price of rice will definitely have an impact on the food inflation and the overall inflation. But we will have to wait,” Mr. Mapa said.
Despite the downtrend in June inflation, Mr. Mapa said it is still not that clear if inflation will continue to decelerate as there are still risks such as higher fuel, electricity and food prices.
“Nonetheless, higher prices of food items other than rice, transport charges, and electricity rates continue to pose upside risks to inflation,” the BSP said.
Mr. Mapa said the impact of the recent wage hike on inflation may be seen in the coming months.
“We’ve seen before the impact of a wage hike on prices of services. We need to study what are the lag effects, but we have seen in the past that there is an impact on selected commodity groups, in particular, personal care and miscellaneous goods and services,” he said.
A P35 minimum wage hike for workers in NCR was approved by the Regional Tripartite Wages and Productivity Board (RTWPB) last week, set to take effect on July 17.
National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said that they will continue to work with relevant agencies to further bring down prices.
“We will continue to work closely with the government, stakeholders, and other priority sectors to implement necessary measures to ensure that the country will have a sufficient and affordable food supply — including rice — for every Filipino,” he said.
PEAK IN JULY?
For the coming months, Metrobank Research and Market Strategy Department said it expects the tariff cuts to “substantially slow” headline inflation.
“We retain our view that monthly year-on-year inflation will likely peak in July and will trend downwards thereafter,” it said in a report.
ING Bank N.V. Manila likewise said that reduction in tariffs should help bring down rice prices.
“The reduction in tariffs will also likely help mobilize existing rice stocks and should benefit producers and exporters in Vietnam, where much of the rice imported into the Philippines comes from,” it said in a report.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in an email that the latest inflation print could make the case for the BSP to begin policy easing.
He said that easing inflation “could support possible local policy rate cuts as early as the latter part of 2024 especially if the Fed starts cutting rates.”
“(The) inflation decline, and the anticipated declines in the months ahead will make it easier for the BSP doves, including Governor Eli M. Remolona, Jr. to argue for rate cuts,” ING said, adding it expects the BSP to cut by 25 bps in the third quarter.
Mr. Remolona earlier said that the Monetary Board can begin easing at its Aug. 15 meeting, which is the only policy meeting scheduled in the third quarter.
The BSP can cut by 25 bps in the third quarter and another 25 bps in the fourth quarter, the BSP chief added.
“We continue to believe that the Board will start to cut rates next month, reducing it by a total of 75 bps before the end of the year,” Pantheon Macroeconomics said in a note.
“In early 2025, we expect 50 bps-worth of additional cuts. Headline inflation now looks secure within the (central) bank’s 2-4% target range for the foreseeable future, barring an unexpected supply shock,” it added.
On the other hand, Metrobank expects the BSP to only begin cutting rates by October.
“Despite the lower inflation path, we continue to believe the BSP will hold off on cutting policy rates until its Oct. 17 meeting with a 25-bp cut, followed by another 25-bp cut on Dec. 19, to support the peso,” it said.
“We acknowledge the risk of earlier policy action in the Aug. 15 meeting should the July inflation print continue to surprise on the downside coupled with clearer dovish signals from the US Federal Reserve on its own easing cycle.”
Pioneer Insurance recently launched a pet-friendly product called PetiCash Dog and Cat Insurance to reinforce its support to Filipino fur parents when it comes to pet care.
Pioneer Accident & Health — Retail Head Jo-I A. Kapunan said that Pioneer PetiCash Dog and Cat Insurance is the result of the company’s advocacy of pet welfare and responsible pet ownership which is part of the company’s even bigger campaign for inclusive insurance.
“When a simple bonding moment with your BFF (Best Fur Friend) results in an emergency, fur parents can confidently rely on Pioneer’s PetiCash Dog and Cat Insurance,” Kapunan said.
In a recent study conducted by Vero on pet ownership culture in the Philippines, 83% of pet owners consider their pet/s as their “child”, with 48% spending up to P5,000 monthly on their pet’s needs.
With the rising trends in pet care, Pioneer Group Head Lorenzo Chan, Jr. said Pioneer understands the financial implications of building a sustainable lifestyle that supports both you and your fur baby’s overall well-being.
“Our dogs and cats are not just our pets; they are family and Pioneer’s PetiCash is dedicated to helping pet parents fulfill the responsibility of providing adequate and the right kind of care, concern, and sustenance for their pets, without breaking the bank,” Chan said.
At the recent 2024 Pet Summit Philippines, which drew over 17,000 pets, Pioneer joined in the festivities by offering brief consultations on pet insurance. They also conducted a raffle where one lucky pet parent won a PetiCash plan that covers Accidental Injury, Covered Illnesses, and Acute Dental Conditions.
Chan said that Pioneer proudly opens its pet insurance coverage to all dog and cat breeds including aspins, puspins, and older pets as long they have vet required vaccines and are no older than six (6) years old. “Once insured, their coverage can be renewed up to age 12,” Chan added.
With four (4) plans to choose from, PetiCash offers vet reimbursement for covered accidents and fur parents may also customize their plans by adding benefits such as coverage for illnesses, acute dental conditions, accidental death or essential euthanasia, international travel emergency vet treatment, petnap, or pet owner’s liability.
To find out how you can PETsonalize your Pioneer PetiCash Dog and Cat Insurance, visit bit.ly/PetiCash_DigitalMag.
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SINGAPORE – Bitcoin sank to a four-month low on Friday, breaking below technical supports as traders anticipated the dumping of long-lost tokens from a defunct Japanese exchange and further selling by momentum-spooked leveraged players.
The price of the world’s largest cryptocurrency slid more than 8% to $53,523, below chart support around $55,000 and its lowest since late February.
It has lost some 12% for the week so far, even as many of the risk-sensitive assets it tends to track, such as the Nasdaq .IXIC, have gained.
Ether ETH= slid 9% to $2,841, an over two-month low.
Media reports said Mt. Gox, the world’s leading exchange for cryptocurrencies before it collapsed a decade ago, may start returning bitcoin to creditors, who are seen as likely sellers since the token’s worth was only hundreds of dollars in 2014.
“The selling pressure is still related to creditor selling from the failed Mt Gox exchange,” Tony Sycamore, a market analyst at IG, said.
“However, the acceleration to the downside suggests the market is trying to get ahead of the creditor flows.”
Analysts have also pointed to worries over the possibility of Joe Biden being replaced as the Democrats’ presidential nominee by someone less pro-crypto after a shaky debate performance with rival candidate Donald Trump.
Bitcoin had a strong start to the year after the launch of exchange-traded funds in the US, propelling it to a record $73,803.25 in mid-March. However, it has since struggled.
“With an asset that has been rangebound for quite a while and recently in the lower end of that range, there are plenty of margined positions,” said Justin D’Anethan at digital assets market maker Keyrock, which are forced to sell as prices fall.
“This of course creates a cascading effect, pushing prices further down than it might in a market with less leverage.” — Reuters
A German national flag flies atop the illuminated Reichstag building in Berlin, Germany. — REUTERS
BERLIN – Germany’s coalition government has clinched an agreement on the budget for 2025 that will adhere to the country’s strict spending rules following months of negotiations, government sources told Reuters on Friday.
Chancellor Olaf Scholz’s Social Democrats (SPD), Economy Minister Robert Habeck’s Greens and Finance Minister Christian Lindner’s Free Democrats (FDP) have been battling to resolve differences over future cuts and spending plans.
Lindner had stressed the importance of returning to the nation’s constitutional enshrined cap on spending, known as the debt brake, and called on a number of ministries to find cuts.
The SPD and Greens, on the other hand, had called for leeway to allow funds for investment.
A government source said that the agreement on the budget and medium-term financial planning up to 2028 adhered to the debt brake, which allows deficit spending of 0.35% of gross domestic product.
Details on the budget agreement and an accompanying package of measures to boost Germany as a location for business are expected later on Friday, according to one of the sources.
DEFENCE BOOST
Infighting over spending has cast further doubt over the fitness of the coalition, which has rowed repeatedly since taking office in late 2021 in a term marked by economic slowdown, high energy costs and the war in Ukraine.
“In view of the state of the world, it would be irresponsible to let the coalition collapse,” said Anton Hofreiter, a leading member of the Greens in the Bundestag parliament, welcoming news of the budget agreement.
While other ministries tightened their belts, the Defence Ministry has been promised more funds as Germany ramps up spending on its long-neglected Bundeswehr military following Russia’s invasion of Ukraine.
“The renewed increase in the defence budget underlines the high priority of modernising the Bundeswehr,” FDP politician Marcus Faber, who heads the parliamentary defence committee, said in comments published by the Funke Media Group on Friday.
“The government is setting the right priorities for the security of our republic,” he added. — Reuters
CITYSCAPE view of the Victoria Harbour region in Hong Kong. —MANSON YIM-UNSPLASH
HONG KONG – An increase in the duty-free quota for Chinese tourists to Hong Kong may go some way to support the city’s retailers, but visitors from the mainland say prices are still unattractive.
From expanding the solo travel scheme for Chinese visitors to Hong Kong in May to bumping up the duty-free shopping quota, the China and Hong Kong governments are striving to lure tourists from across the border.
This comes as Hong Kong residents increasingly flock to the mainland for shopping and entertainment, saying prices there are generally lower and the service is better, and the Asia financial hub struggles to recover after the pandemic.
Starting from July 1, the duty-free shopping quotas for Chinese tourists in Hong Kong were increased from 5,000 yuan ($688) per trip to 15,000 yuan for those visiting via six land border control points.
The new measure will be expanded to include Chinese visitors entering Hong Kong at all border control points from Aug. 1.
The government said it expects the measure to bring additional shopping spending of between HK$8.8 billion ($1.13 billion) and HK$17.6 billion to the city.
Annie Tse Yau On-yee, chairwoman of the Hong Kong Retail Management Association, said it would take time to see the benefits of the changes.
Hong Kong’s May retail sales slumped 11.5% from a year earlier, government data showed on Tuesday, reflecting a surge in outbound trips, strength in the local currency and a high base of comparison for visitor spending last year.
“Considering the speedy business downturn, together with high rent and manpower costs, other economic factors, such as the strong Hong Kong dollar, also pose challenges to the retail industry,” said Bond Law, an executive director of the association, adding the situation is expected to remain difficult for some time.
Harbour City, a shopping mall in the tourist area of Tsim Sha Tsui, said it believes “this policy change will have a positive impact, driving up retail sales and attracting more tourists to Hong Kong and to our mall”.
Hong, 49, and his wife Chen 43, who were visiting Hong Kong from China’s Guangxi province for the first time, said the cost of dining in the city was still a barrier.
“The food here is five times more expensive than the food back in the city where I currently live,” Ms. Chen, who only wanted to be known by her surname, said as she held bags of clothes and cosmetics from various luxury brands.
The number of Chinese visitors has risen in recent months, according to data from the tourism board, but analysts say consumption trends have changed.
Cost-conscious Chinese tourists have replaced many of the cash-rich mainland travel6ers who once flocked to Hong Kong, with some only interested in free walking tours of the city and taking photographs.
Sienna Zheng, 29, a tourist from the southern Chinese city of Shenzhen said she did not plan to purchase many luxury goods during her fourth visit to Hong Kong.
“I came to visit different places for photos and try out the foods,” Ms. Zheng said, adding that even though the products in Hong Kong are tax-free the prices are similar to the mainland. – Reuters
HONG KONG – China’s power supply to gambling hub Macau has exceeded 1 million kilowatts on a single day for the first time since the special administrative region and neighboring Guangdong province were connected to the mainland’s electricity grid.
The State-owned Assets Supervision and Administration Commission of the State Council made the announcement on its website on Friday citing China Southern Power Grid Company.
“Since the start of the year, Macau’s economic recovery has been strong. Coupled with rising temperatures, the electricity load has increased significantly,” the Commission said.
To cope with rising demand, China Southern Power Grid will optimize the network and improve supply capacity to Macau for disaster prevention and resilience, it said.
On July 1, power supply to Macau exceeded 1 million kilowatts for the first time, increasing 4.85% from a previous single-day record of 989,000 kilowatts set last year.
In 2023, annual power supply from the mainland to Macau reached 5.327 billion kilowatt hours, an increase of 9.3% and satisfying 90% of Macau’s total electricity consumption. – Reuters
KUALA LUMPUR – Around 39 people at Malaysia’s Kuala Lumpur international airport fell ill on Thursday after a gas leak at an aircraft engineering facility, but no passengers were affected and there were no flight disruptions, the fire department said.
The Selangor state fire department said it received an emergency call regarding a chemical leak at the Southern Support Zone Sepang Aircraft Engineering facility at 11.23 a.m. (0323 GMT) and dispatched its personnel along with a hazardous materials team.
The engineering facility is separate to the passenger terminal and those affected by the gas worked for three companies operating there, the fire department said in a statement.
Thirty nine people complained of dizziness and nausea, with 14 sent to the air disaster unit to receive treatment while one was hospitalized, the department said.
There was no wider risk to public safety, it added.
The chemical was later identified as methyl mercaptan, added to liquefied petroleum gas as an odorant, coming from an unused tank at the facility, the department said.
The leak was being patched up, and the tank would be dismantled and disposed of, it said. – Reuters
WASHINGTON – President Joe Biden said “I’m not going anywhere” as he faced calls by many Democrats to end his re-election bid, using the Fourth of July celebrations on Thursday to hit back at doubts about his stamina and mental acuity to continue his campaign.
The 81-year-old Democrat’s shaky showing at a June 27 debate with Republican rival Donald Trump means his every appearance is now closely scrutinized. Many Democratic voters are worried about whether he can keep up a grueling pace of work for the next 4-1/2 years and some in his party have urged him to step aside.
Mr. Biden was hosting the annual US Independence Day festivities at the White House on Thursday, including a barbecue for a few thousand active-duty military service members and their families.
Mr. Biden, in a suit with no necktie, began his remarks with a forceful “Happy Independence Day!”
Reading from a teleprompter, Mr. Biden made no major errors in delivering brief remarks, but at one point appeared to go off script to make reference to a war cemetery that Trump declined to visit while in office.
“By the way, you know, I was in that World War One cemetery in France. The one that one of our colleagues, a former president didn’t want to go…,” he said, his voice dropping to a low volume and trailing off.
“I probably shouldn’t have said, anyway,” Mr. Biden added, before continuing his remarks.
As Mr. Biden mingled and took selfies with guests, someone called out for him to “Keep up the fight.”
“You got me, man. I’m not going anywhere,” Mr. Biden said, repeating his pledge to remain in the race despite the growing calls to step aside.
Abigail Disney, granddaughter of Walt Disney who founded the company that bears his name and who has been a major Democratic donor, became the latest donor to call for Biden to withdraw from the presidential election, telling CNBC on Thursday that she will halt donations to the Democratic Party until he does so.
Vice President Kamala Harris is the leading contender to take his place in the Nov. 5 election if Biden were to drop out, sources have said, though his allies believe he can assuage the concerns of voters and donors.
Among the events on Mr. Biden’s calendar being closely scrutinized is an interview with ABC News on Friday that will be aired in full at 8 p.m. ET (0000 GMT Saturday). He also travels to Wisconsin the same day for a campaign rally.
Dozens of Democrats in the House of Representatives are watching closely and prepared to ask Biden to step aside if he falters in the ABC interview, a source told Reuters. Democrats see capturing control of the House in November as critical, as it could be their last hold on power in Washington if Trump returns to the White House and Republicans capture the Senate.
Mr. Biden faces a new reality since last week’s debate – even if he doesn’t falter verbally or physically, serious concerns about his viability as a candidate are likely to linger. If he mangles words or looks unfocused or confused, he will face renewed pressure to depart.
If reelected, Mr. Biden would be 86 at the end of a second term. He is being asked by some former supporters to step aside to preserve his legacy and lessen the chances of a second Trump presidency. With just four months to go before the election, a decision needs to be made soon, they say.
Democrats, including top allies, have left the door open to having Ms. Harris at the top of the Democratic ticket.
SEEN BY DOCTOR
The White House has repeatedly said the president was suffering from a cold and jet lag on the night of the debate. On Wednesday, White House Press Secretary Karine Jean-Pierre said Biden had not had any kind of medical exam since his annual physical in February.
“He did not get checked out by the doctor. It’s a cold, guys. It’s a cold,” she said at a news briefing.
However, spokesperson Andrew Bates said on Thursday that Biden saw a doctor after the debate. “Several days later, the president was seen to check on his cold and was recovering well,” he said.
Mr. Trump, 78, who made multiple false statements from the debate stage in Atlanta, falsely claimed in a video that was circulated on social media that he had driven Mr. Biden out of the race. He made disparaging comments about Harris in the same video.
Asked in a radio interview with WURD that aired on Thursday morning, whether there was any reason for the American people to be concerned after last week’s debate, Mr. Biden demurred.
“No, I had a bad debate,” he said, adding that this should not erase what he has done as president for three and a half years.
Mr. Biden’s standing in opinion polls took a hit after the debate. Some 59% of Democrats responding to a Reuters/Ipsos poll said that Mr. Biden was too old to work in government, a concern that has shown up persistently in public opinion polling over the past year. – Reuters
The Philippines needs to sharpen its competitive edge if it wants to remain a contender as an investment destination. One of the country’s main selling points is its ongoing reforms, but these reforms need to be targeted and strategic. Meaning, these ongoing reforms should be used to address the existing concerns of potential investors.
The Asian Consulting Group’s International Tax and Investment Roadshow created a platform for potential investors to learn more about investing in the Philippines and, more importantly, to air their concerns. During the first half of the year, the Roadshow has been held in East Asia, the United States, and Europe, and was attended by representatives from multinational corporations, fintech companies, and other foreign investors.
There are certain recurring issues that have been pointed out by these potential investors.
Improving the VAT refund process
One of the more consistently mentioned concerns is the issue of VAT refund. Simply put, the process is cumbersome and there is no reassurance that the claims would be approved even though these applicants for refund have already paid the input VAT.
When ordinary corporations apply their output VAT to their input VAT, they do not need to undergo a separate process. When it comes to zero-rated corporations, such as exporters, they need to apply for VAT refund, an entirely separate process which ends up being too stringent. The BIR has a tendency to be strict with refunds because its mandate is to collect taxes. If it wrongly approves a refund claim, then it will be held at fault.
One solution to this problem is the establishment of a separate VAT refund center, which is specifically tasked with processing refund claims. This agency would have the specialized skills to process VAT refunds. Fortunately, the latest version of the CREATE More Bill appears to be headed toward this direction, since the bill appears to include the establishment of a VAT refund center within the Department of Finance’s Revenue Operations Group.
Another solution is the implementation of electronic processing of VAT refunds. By using electronic processing for VAT refund applications, the BIR would be able to rely on third-party information. Through the use of this data, the BIR will be able to identify discrepancies between the sales declared by suppliers and the purchases declared by buyers, and it is only when there is a discrepancy that the BIR should conduct a VAT audit.
Electronic processing of VAT refunds is already being done in some countries in the European Union, such as France, Spain, and Italy, and also in South Korea.
Implementing Risk-Based Audit
In line with the necessary reforms to the VAT refund process, it is also necessary to overhaul the way BIR Audit is being conducted. The current system of random audit needs to be abandoned in favor of a risk-based audit system which would not only be targeted and strategic, but also fairer and less prone to abuse. Under the current system, BIR Audit is conducted on a random basis, which means that it is possible for the same companies to be audited over and over again. It grants revenue officers unbridled discretion on who to audit.
The classifications introduced by the Ease of Paying Taxes Law, which classified VAT refund applications in terms of low-risk, medium-risk, and high-risk, could be extended to taxpayers in general. Taxpayers paying a certain amount below the industry threshold could be categorized as medium-risk or high-risk, while compliant taxpayers could be classified as low-risk. Limiting BIR Audit to taxpayers that are deemed high-risk would allow the BIR to be able to focus its efforts by auditing only those that are high-risk, and it would prevent taxpayers identified as low-risk or medium-risk from feeling harassed.
Introducing Global Minimum Tax
The Philippines would also benefit from implementing a Qualified Domestic Minimum Top-Up Tax (QDMTT) pursuant to the OECD’s Two-Pillar Solution. The Two-Pillar Solution seeks to address excessive tax avoidance by multinational corporations who take advantage of tax havens to hide away their income. The QDMTT is one such solution that is intended to address that very problem. A QDMTT is a minimum top-up tax which calculates the excess profits located in the jurisdiction and increases the domestic tax liability with respect to excess profits to the minimum rate for the jurisdiction.
Introducing the QDMTT in our jurisdiction would allow the collection of the difference between the Global Minimum Tax and the Income Tax Holiday (ITH) or Special Corporate Income Tax (SCIT).
In line with the OECD proposal is the adoption of Income Inclusion Rules (IIR), which would ensure the collection of revenues from the subsidiaries of Philippine entities operating in tax havens or low tax jurisdictions. Income Inclusion Rules have been implemented in countries such as Japan, South Korea, and Vietnam.
Restoring the Authority to Administer Incentives in favor of Investment Promotion Agencies (IPAs)
Another main reason investors consider investing in the Philippines is its incentives. However, it can become cumbersome for certain incentive applications. While CREATE Law is certainly admirable for its push for rationalization of incentives, it unwittingly added an additional layer of bureaucracy.
Under the current system, investments falling within the jurisdiction of the Fiscal Incentives Review Board (FIRB) have to be endorsed and approved by the FIRB even though IPAs, such as Philippine Economic Zone Authority (PEZA), have already examined the necessary documentary requirements for these applications. The end result is delay in the start of the commercial operations of affected business enterprises.
According to PEZA, the process would be expedited if the authority of IPAs to administer incentives would be restored. IPAs are also in a position to directly pinpoint the interests of Registered Business Enterprises (RBEs) and thus be able to forward recommendations that address their concerns. One of their most recent recommendations is exempting RBEs from local business taxes. Another is allowing RBEs the option to directly avail the Special Corporate Income Tax (SCIT) instead of having to first avail the Income Tax Holiday before being allowed to avail the SCIT incentive.
Final Note
All these issues are major concerns not only for foreign corporations, but also for local businesses. Addressing them by implementing key tax policy reforms and catching up the Philippines with international standards is a must if we want the country to remain competitive as an investment destination, be it from foreign businesses or overseas Filipinos.
The country’s ongoing tax reforms will only be a competitive edge if we maximize it by showing potential investors that we are willing to listen to their concerns and address investors’ issues. The International Tax and Investment Roadshow continues to serve as a platform for airing out investor concerns. After its run in Oceania, ACG is set to hold the Investment and Tax Briefing in Prague and Milan in August. It will resume in Vietnam, the Middle East, Canada, and once again in London by October. For more details, you can reach out to consult@acg.ph.
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