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Two rural banks merge

THE BANGKO SENTRAL ng Pilipinas (BSP) has announced the approval of the merger of Zambales Rural Bank, Inc. and Bridgeway Rural Banking Corp., with the former being the surviving entity.

In a circular letter signed by Deputy Governor Chuchi G. Fonacier, the BSP said the Securities and Exchange Commission (SEC) approved the articles and plan of merger of the two banks on Feb. 18.

Their amendments were also executed in April and August last year, respectively, by and between, Zambales Rural Bank, Inc., the surviving bank, and Bridgeway Rural Banking Corp., the absorbed bank.

The assets and liabilities of Bridgeway will be transferred to and absorbed by Zambales Rural Bank, the BSP added.

“The merger took effect on Feb. 18, 2025. Zambales Rural Bank, Inc. commenced operations as merged bank on Feb. 21, 2025.”

Zambales Rural Bank was established in 1974 as a domestic rural banking corporation. It offers savings, demand and time deposit products, as well as short-term and long-term loans to rural clients covering commercial, agricultural and housing needs, among others.

The bank operates in Zambales, Bataan, Pampanga and Baguio. It currently has 12 branches, according to the latest available data on its website.

The BSP has been encouraging rural banks to consolidate as part of its Rural Bank Strengthening Program (RBSP) that was launched in 2022.

The RBSP features five time-bound tracks that aim to strengthen the capital position of rural banks: merger/consolidation, acquisition/third-party investment, voluntary exit/upgrade of banking license, capital buildup program, and supervisory intervention.

In September 2022, the BSP raised the minimum capital requirement for rural banks with a head office and as many as five branches to P50 million, while those with six to 10 branches must have a minimum capital of P120 million. Those with more than 10 branches must have a capital of at least P200 million. Rural banks have until 2027 to comply with the new rules.

Rural banks booked a combined net income of P11.56 billion in 2024, rising from P8.22 billion in 2023, latest central bank data showed.

There were 382 rural banks in the Philippines at end-February, down from 388 a year prior, BSP data showed. — Luisa Maria Jacinta C. Jocson

Dulaang UP takes on the climate crisis

THE SECOND offering of Dulaang Unibersidad ng Pilipinas’ (Dulaang UP) 47th season is tackling pressing issues on the climate crisis through a twin bill: one play exploring local mythological creatures’ perspective of a disrupted balance, and the other depicting the experiences of everyday Filipinos who attempt to address the crisis.

Mga Anak ng Unos, which runs from March 28 to April 13, combines these two brand-new plays to “deepen our understanding of climate realities.”

“It looks at critical convergences in theater-making, nature, and the human condition,” said Dulaang UP artistic director Issa Manalo Lopez during a March 8 press visit for the forthcoming twin bill.

“These performances explore how human ways of living shape and dictate ecological conditions driving destruction and endangering the existence of all life forms. They arise from the urgent need to respond to the global climate emergency as the earth’s temperature surpasses the 1.5-°C critical threshold, an escalation marked by catastrophic weather that disproportionately intensifies climate change effects and impacts on developing nations,” Ms. Lopez said.

Mga Anak ng Unos is the first of Dulaang UP’s offerings under “DUP INNOVATE,” a lab dedicated to the creation of new, developing, and original works from Filipino theater practitioners.

GODS AND CREATURES
The first play is Sa Gitna ng Digmaan ng mga Mahiwagang Nilalang Laban sa Sangkatauhan, written by Joshua Lim So (who is in the Carlos Palanca Award for Literature Hall of Fame), under the direction of José Estrella. As the title hints at, the play shows bathalas (gods) and mythological creatures in the middle of a war against the sangkatauhan (humanity).

As the battle between the gods and humanity unfolds on stage, audience members are compelled to ask if we are indeed at war and if there is still time to change the course of the conflict.

“The worldbuilding in the script is from actual folk tales. We have gods who sustain themselves through humans, alliances of a military nature in their war on mankind, and many more,” Popo Amascual, the play’s assistant director, told BusinessWorld.

“From makeup to tattoos, we try to keep it all grounded in the original lore. The flavor we add are how these creatures could be strategic in their missions under this overarching war related to the climate crisis,” she added.

The dramaturgy team said that Mr. So, as the playwright, had a few sources for the script. One was permaculture farms, which are characterized by self-sustaining agricultural zones or ecosystems, inspiring the various planes of existence of the mythological creatures; the other was Edgar Samar’s book Mga Nilalang na Kagila-gilalas, which is basically a compendium of mythological creatures based on folklore from all over the archipelago.

“This play has dialogues between these creatures and interactions with humans who have been abusive towards the earth. It all stems from local folklore. We have bathalas, aswangs, diwatas,” explained Ms. Amascual.

Their differences in language, being from different regions in the Philippines, make up “an intriguing aspect of the play that other folklore-based tales haven’t really tackled,” she added.

Other members of the artistic team include dramaturgs Anril Tiatco and Jem Javier, dramaturg-in-training Gaby Asanza, set designer Mark Dalacat, costume designer Carlos Siongco, lights designer Barbie Tan-Tiongco, and sound designer Jack Alvero.

The cast of the ensemble piece, in alphabetical order, are: Raymond Aguilar, Tristan Bite, Kris Caaya, Jasper Cabra, Exequiel Camporedondo, Sheryll Villamor Ceasico, Kenneth Charles Famy, Belle Francisco, Lee Lim, Sarina Sasaki, Jigger Sementilla, Genalyn Suelto, and Ingrid Villamarin.

HUMAN RESPONSES
Climate in Crazies, the second play in the twin bill, looks at the expanse of global experience and “zooms in on the local and more personal experience of the global climate emergency.” It is directed by Issa Manalo Lopez and Tess Jamias and is based on Australian playwright David Finnigan’s Scenes from the Climate Era.

The ensemble transposed the original text into the Filipino understanding of the crisis and everyday problems, solutions, attitudes, and actions addressing it. This means it was written through the process of devising, which refers to a collaborative method of forming a script.

“In adapting the text, it wasn’t enough that we translate. It was part of our decision-making to either let go of sentiments that were too foreign or to try to make them more local,” co-director Ms. Jamias told BusinessWorld.

Ms. Lopez, also a director of the play, added that Mr. Finnegan’s script was already a combination of different conversations — with his father who is a climate scientist, and even with her as she told him about her experience in Tacloban with Typhoon Yolanda.

“Our aim is to make it accessible. We don’t want the audiences to passively absorb information. We want them to relate with the characters who are trying to segregate, doing their part, and also expressing doubts about their real impact,” she explained.

As hinted by the title, Climate in Crazies, a pun on the word “crisis,” the goal is to tackle the serious issue with “humor, levity, and playfulness.” While Mr. Finnegan meant for the text to be transposed to different countries, Dulaang UP’s version will mark the first from the perspective from a developing country, not from the global north.

Ms. Jamias said that in the process of developing the play, the artistic team and ensemble have been on a journey themselves. “We’re all trying to understand the climate crisis. What we want to do is to bring the audience on that journey.”

Other members of the artistic team include dramaturg Nikka De Torres, set designer Mark Dalacat, costume designer Carlos Siongco, sound designers Jose Buencamino and Sage Ilagan, and video designer Tofie Falcon.

The cast is composed of actor-devisers Delphine Buencamino, Bong Cabrera, Herbie Go, and Ethan King.

Mga Anak ng Unos will run at the IBG-KAL Theater, University of the Philippines Diliman, Quezon City from March 28 to April 13. Persons with disabilities and senior citizens may enjoy a discounted rate of P800, while regular tickets are available for P1,000, via Ticket2Me or bit.ly/MgaAnakNgUnosTickets. — Brontë H. Lacsamana

How to make billions selling $1 lemonade

A WINNING BUSINESS MODEL. — NA BIAN/BLOOMBERG

ONE CAN BECOME a billionaire selling ice cream, lemonade, and fruit smoothies — all for less than $1. Zhang Hongchao and Zhang Hongfu, two brothers who founded China’s largest freshly made drinks chain, are making a fortune by taking advantage of China’s fast-shifting labor dynamics.

Mixue Group’s blockbuster HK$3.5 billion ($444 million) public listing is a marvel for a difficult food and beverage industry where even the likes of Starbucks Corp. and McDonald’s Corp. are revamping their operations. With its share price surging, the Zhang brothers are now richer than Starbucks’ founder Howard Schultz.

Fast-growing cash cows are hard to find in this uncertain world. By number of stores, Mixue has become bigger than McDonald’s. It has over 45,000 outlets after more than doubling its locations in just three years. There’s no cash burn either. In the first nine months of 2024, revenue grew 21% to 18.7 billion yuan ($2.6 billion), while net profit came in at 3.5 billion yuan, a 42% year-on-year gain.

Behind Mixue’s growth is an army of franchisees. The company barely manages any stores itself. Rather, almost all of its revenue came from selling store supplies, including syrup, milk, and fruit, as well as equipment such as refrigerators and ice-cream makers, to its franchises.

Faced with weak job prospects, many Chinese might find Mixue’s business proposition palatable. The initial investment for opening a shop is only about 210,000 yuan.

One doesn’t need much expertise to run a business either. Mixue’s corporate headquarters have standardized everything, including advertising campaigns. For an aspiring entrepreneur, the only trick is spotting a site that can break even quickly.

Mixue is expanding just when China’s labor market is changing shape. Because of automation, even the world’s largest factory can’t provide so many manufacturing jobs. In 2023, wholesale and retail sectors employed 135 million people, 12 million more than manufacturing, according to the latest census. Many Chinese choose to be self-employed or work for family members, as larger companies lay off people and cut salaries. Ultimately, Mixue is not selling $1 lemonade, but an entrepreneurship dream.

But online complaints are growing louder, with many claiming that Mixue is making money at the expense of franchisees, that the company is shifting operational risks to small business owners.

By now, Mixue’s stores are peppered across China. Even in small towns, one street can have multiple outlets — some only 200 meters away from each other — competing for the same customers. There’s already a hint of cannibalization in the company’s financials: In the first nine months of 2024, the latest data available, the average daily gross merchandise value per store fell by 5% to 4,184 yuan.

In its franchise agreements, Mixue doesn’t require newly opened stores to keep a minimum distance from existing ones. Increasingly, for franchisees, it is hard work mixed with financial anxiety. On average, each store can expect to make 367 orders a day, or every two minutes for 12-hour days. But operators dare not slack off. It would take some shops two to three years to break even, much higher than what some company employees suggested, according to local media.

So far, Mixue is opening outlets a lot faster than it closes them, and people are only disgruntled online. Unfortunately, in a weak economy, small businesses have no power and the platform holds all the cards. But Mixue’s capital market success is exacerbating an economy driven by hyper competition, and portends the burnout that will eventually follow.

BLOOMBERG OPINION

Philippines climbs in Economic Freedom Index

THE Philippines went up six notches to 82nd out of 176 countries and is now considered “moderately free,” according to a global index on economic freedom by The Heritage Foundation. Read the full story.

Philippines climbs in Economic Freedom Index

Sprout Solutions eyes more industries for AI sales assistant

SPROUT.PH

SPROUT SOLUTIONS is looking to expand its artificial intelligence (AI) sales assistant Inbound to other industries to help accelerate deal closures.

“For anyone in sales, one of the hardest things isn’t really closing the sale; it’s getting enough customers to even talk to you at the very beginning,” Gian Paulo G. dela Rama, chief product and AI officer at Sprout Solutions, said in a video interview on March 4.

“It’s that specific pain point that we’re trying to address, so we want to deliver actionable leads to sales people, and to do that, we built this AI tool that will automate the lead engagement at the very beginning,” he added.

About 50 entities in the real estate and automotive sector use Inbound.

Launched in January, Inbound seeks to increase Philippine companies’ competitiveness by streamlining workflows, providing high-value leads and accelerating deal closures. It initially catered to the real estate and automotive sectors.

“With Inbound, managing and converting leads have never been easier,” Patrick Gentry, chief executive officer at Sprout Solutions, said in an e-mailed statement. “Automating complex workflows frees teams to focus on the most promising buyers and real opportunities, instead of getting bogged down in manual tasks.”

The platform provides businesses with data-driven analytics to track crucial metrics, namely conversion rates, lead engagement and product performance, sales volume and revenue.

It can also be integrated with other business tools, including customer relationship management, listing or inventory platforms and scheduling software like Google Calendar.

Inbound also has a setup guide and a team of experts to help businesses use the platform effectively.

Mr. Dela Rama said companies could train Inbound with its own information through the platform’s “state-of-the-art generative AI.”

Before, companies had to anticipate what questions customers would ask and create answers, he said.

“[Now,] our clients basically just need to upload whatever materials that they have, and our Inbound chatbot will be able to answer questions or generate answers based on the information that it has been trained on.”

The Inbound chatbot can also be customized according to the company’s branding and tone.

Customers can integrate Inbound’s chatbot into their website and Facebook Messenger accounts. Sprout Solutions is looking to integrate the chatbot to corporate e-mail accounts.

More than 240,000 companies in the Philippines and Thailand use Sprout Solutions’ AI-driven human resource and business solutions, Mr. Dela Rama said.

The Philippine economy is expected to gain P2.6 trillion annually if domestic businesses adopt AI solutions, according to the National Economic and Development Authority. — Beatriz Marie D. Cruz

SEC says GCash proposal to relax MPO rule ‘possible’

PHILSTAR FILE PHOTO

THE Securities and Exchange Commission (SEC) said it is possible to lower the 20% minimum public ownership (MPO) requirement for public listings to accommodate the planned stock market debut of mobile wallet platform GCash. 

SEC Commissioner McJill Bryant T. Fernandez said GCash must apply for exemptive relief with the corporate regulator.

“Should there be any lowering of the 20% (MPO rule), then that would still be an exemptive relief application. It is within the SEC’s power…” he told reporters on the sidelines of a recent listing event in Makati City.

“At the end of the day, we have to look at market conditions. We have to check exactly what they’re going to propose. But we have yet to see. The size of the offer would be considered. At the end of the day, we want a successful listing,” he added.

However, Mr. Fernandez said GCash has not yet submitted an application to the SEC.

“Formally, we have not yet received anything from GCash. We haven’t even conversed, formally or informally, about this. I’m aware that they’ve reached out to the Philippine Stock Exchange (PSE),” Mr. Fernandez said.

“From our end, we’re looking forward to this listing by GCash,” he added.

Globe Telecom, Inc. recently said it is seeking regulatory relief from the PSE and the SEC on the 20% MPO rule for the planned GCash initial public offering (IPO).

G-Xchange, Inc., which operates GCash, is a wholly owned subsidiary of Globe Fintech Innovations, Inc. (Mynt).

Globe President and Chief Executive Officer Ernest L. Cu recently said the GCash IPO could target an $8-billion valuation and might happen by year-end.

He added that the timeline will depend on the PSE and SEC’s decision on whether to lower the MPO rule to 10%-15% from 20%. 

PSE President Ramon S. Monzon said in January that the market operator, along with the SEC, is evaluating the possibility of reducing the 20% public float requirement. The PSE aims to have six IPOs this year. — Revin Mikhael D. Ochave

Arts & Culture (03/19/25)

Cristina Pantoja Hidalgo to lecture on historical novels

THE second installation of the lecture series “States of the Filipino Novel” will be held on March 21, 5 p.m., at the Natividad Galang Fajardo Conference Room of Ateneo de Manila University in Quezon City. It will be led by renowned professor, writer, and literary scholar Cristina Pantoja Hidalgo who will discuss the modern Philippine historical novel and women writers  Both the in-person talk and its livestream are free to the public.

Nicole Coson, Jon and Hanna Pettyjohn at Silverlens

SILVERLENS MANILA will hold a solo exhibition by Nicole Coson alongside a duo presentation of father and daughter potters Jon and Hanna Pettyjohn, both exhibits opening on March 20. Ms. Coson’s is titled Membranes, focusing on two everyday objects: styrofoam mesh fruit casing and standard plastic shipping crates. These items speak to the vast journeys that perishable goods undergo before eventual consumption, expressed in printmaking and painting for the show. Meanwhile, the Pettyjohns are presenting Reflections, in situ, featuring collaborative sculptures alongside individual works by each artist. Both artists articulate through their works a deep connection to the landscape of the Philippines through transformed raw materials, ceramics, paintings, and sculptures. Both exhibits run until April 25 at Silverlens, Chino Roces Ext., Makati.

Women’s Month opera to take place at Y Space

FOR an evening of powerful voices and soulful melodies, those who enjoy or are curious about opera can come to Her & Harmonies: A Women’s Month Opera Event, featuring sopranos Krissan Manikan-Tan and Kay Balajadia, on March 22, 6:30 p.m., at Y Space at the Yuchengco Museum, RCBC Plaza, Makati. Raki Gendrano will be on piano supporting the two opera singers. Tickets for the general public cost P1,500 while seniors, persons with disabilities, and academic faculty with valid IDs can attend for P1,200.

China Collages opening at MO_Space

THE SHOW, China Collages, will give viewers the chance to revisit Roberto Chabet’s pivotal series of works on paper this March. Done between the mid to the late 1980s, these collages represent a critical point in both Mr. Chabet’s career as an artist, as well as the evolving political landscape, bearing tumultuous undulations between order and chaos. In these works, Mr. Chabet reimagines collage through the functions of the map. China Collages is open for public viewing at MO_Space from March 22 to April 20 at the 3rd floor of Mos Design, 9th Avenue, BGC, Taguig.

Calle Wright holds talks on opening show

TWO TALKS will be held this month in conjunction with Calle Wright’s opening exhibit for the year, Hair tied together, embodied we speak / Pinagtaling buhok, kinatawang bigkas, a group show exploring photography, installation, and sound as tools for connection, resistance, and self-identity. The first talk is “Collective Envisioning: Art, Material, and the Body” on March 22, 3 p.m., with three of the exhibiting artists: Isola Tong, Patricia Perez Eustaquio, and Gina Osterloh. The talk will have them each delve into their works, which explore materiality, the body, and collective memory. The second is “Listening to Walls: Press, Lean, and Perform with Gina Osterloh” on March 23, 10 a.m., where Ms. Osterloh invites visitors into a quiet, meditative space to understand her unique video performance through simple, mindful gestures. Register to attend these events via Calle Wright’s pages. Calle Wright is located on 1890 Vasquez St., Malate, Manila.

Arthur Espiritu holding MiraNila concert

ON April 2, Filipino-American tenor singer Arthur Espiritu will be filling the halls of the MiraNila Heritage House & Library with his powerful voice. His one-night concert, in partnership with Leon Gallery and Gallery MiraNila of The Blue Leaf, is titled Tenor Arthur Espiritu Welcome-home Concert Amid Critical Acclaim in Europe. It starts at 6:30 p.m. at the Main Hall of MiraNila. The night marks his return from Europe after playing leading roles in various opera houses and concert halls. He will be performing pieces by Gabriel Fauré, Franz Lehar, Giacomo Puccini, Charles Gounod, Richard Strauss, Andrew Lloyd Weber, and Francesco Sartori, accompanied by soprano Jade Riccio and pianist Mariel Ilusorio. Doors open at 6 p.m. Tickets cost P1,500 for library seats and P2,500 for Main Hall seats and must be reserved in advance. MiraNila Heritage House & Library is located at 26 Mariposa St., Brgy. Bagong Lipunan, Crame, Quezon City.

Rep announces full cast of ART

REPERTORY PHILIPPINES (Rep) has announced the full cast and creative team for its 88th season offering of Yasmina Reza’s Olivier and Tony award-winning comedy, ART. The production, translated by Christopher Hampton and directed by Victor Lirio, features New York-, London-, and Manila-based creatives. In the cast are London-based Filipino-British actor Martin Sarreal, award-winning Manila-based actor Brian Sy, and British stage, film, and TV actor Freddy Sawyer. Rep’s ART will run from June 13 to 21, with regular performances on Fridays and Saturdays at 8 p.m., and matinee performances on Saturdays at 3:30 p.m. All performances will be at Rep’s recently inaugurated REP Eastwood Theater in Quezon City.

SM Podium opens Australian Book Nook

THE AUSSIE-STYLE Book Nook at SM Podium is now officially open. Its architect Shereen Sy and SM Supermalls president Steven Tan recently hosted Australian Ambassador HK Yu for its unveiling. Named Australia Corner, it houses a collection of children’s books, novels, and educational books about Australia, most of which are not available in book shops in the Philippines. The ambassador handed over a selection of books from the Australian Embassy and the Melbourne-based non-profit Give-A-Textbook Foundation. Book Nook is a community-driven library managed by SM Cares where anyone can read, donate, and share books. It first opened in SM Aura in 2020, and its second branch is located at the 5th level at SM Podium in the Ortigas Center.

TGA announces additional show for Into the Woods

THEATRE GROUP ASIA (TGA) has announced an extended run of its production of Into the Woods, with six additional shows from Aug. 28 to 31 at the Samsung Performing Arts Theater at Circuit Makati. There will be 7:30 p.m. shows on all four days, and 2:30 p.m. shows on Aug. 30 and 31. TGA also announced another cast member: veteran actor Rody Vera, who will play the Narrator/Mysterious Man.

Penguin is publishing Letters from Gaza

PENGUIN has announced the publication of Letters from Gaza, an intimate collection of personal writings that bears witness to one of the most devastating humanitarian crises of our time. This one-of-a-kind compilation by Gaza-based writers Mahmoud Alshaer and Mohammed Zaqzooq is an unflinching account of war told through the words of those living it — offering a deeply personal, urgent, and essential perspective that gets often lost in global headlines. Letters from Gaza is scheduled for release in April under the Penguin Select imprint.

Enhancing the Philippine tourism experience: VAT refunds for foreign tourists

PHILIPPINE STAR/JOHN RYAN BALDEMOR

The Philippines has long been regarded as a premier tropical destination for foreign tourists from around the world. From the pristine white sands of Boracay and the world-class surfing waves of Siargao, to the vibrant streets of Metro Manila and Cebu, the country offers a diverse range of attractions that cater to all types of travelers. In recent years, the Philippines has witnessed a remarkable surge in international arrivals, highlighting its growing appeal and competitiveness as a top travel destination.

Department of Tourism (DoT) Secretary Christina Garcia Frasco has formally announced that the Philippine tourism sector has firmly established its role as a key economic pillar of the national economy, as it achieved unprecedented record-high tourism revenue of approximately P760 billion in 2024.1

In a bid to further boost its appeal and competitiveness in the global tourism market, the Philippine government has introduced a significant policy shift through the enactment of Republic Act No. 12079 on Dec. 6, 2024. The legislation establishes a Value-Added Tax (VAT) refund system for non-resident tourists, aiming to encourage higher spending among foreign visitors and align the Philippines with other leading tourist destinations that offer similar tax incentives.

VAT is ultimately a tax on consumption, even though it is assessed on many levels of transactions on the basis of a fixed percentage. The ultimate burden of tax on consumer goods or services falls on the end user. Providers of these goods or services pass the liability to the final consumers, allowing the providers to offset their own VAT liability (input VAT) with the VAT payments they receive from the final consumers (output VAT).2 The VAT refund system for foreign tourists operates on the premise that the tourists who acquire merchandise in a tourism country do not consume the purchased goods in such country. Such a VAT refund for non-resident tourists adheres to the destination principle of the Philippine VAT system in which goods and services are taxed only in the country where they are consumed.3

The concept of a VAT refund for tourists is not entirely new to Filipinos. Many who have traveled abroad may have experienced and benefited from similar tax rebate systems in other countries. Japan, South Korea, and various European countries have long implemented efficient tax rebate systems that allow foreign tourists to reclaim a portion of the VAT paid on goods purchased during their stay in the country.

Under R.A. No. 12079, a tourist shall be eligible for a VAT refund on locally purchased goods if the following requisites are present:

a. Goods are purchased in person from duly accredited stores;

b. The goods are taken out of the Philippines within 60 days from date of purchase; and,

c. The value of the goods purchased per transaction is equivalent to at least P3,000.

The threshold for the value of the goods purchased per transaction is subject to review and adjustment every three years by the Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, taking into consideration the Consumer Price Index as published by the Philippine Statistics Authority.

The Department of Finance (DoF) is tasked with the responsibility of engaging reputable and experienced VAT refund operators to establish and manage an efficient refund system pursuant to the provisions of R.A. No. 12079. The VAT refund process will accommodate the preferences and convenience of non-resident tourists by allowing refunds to be processed either electronically or in cash, depending on the specific mechanisms implemented. As of this date, the DoF has not yet promulgated the rules and regulations necessary for the effective and faithful implementation of R.A. 12079.

With the implementation of the new law, an estimated 30% increase in tourist spending is projected, promising substantial economic benefits for a wide range of sectors within the Philippine economy.4 The anticipated surge in expenditures by foreign visitors is expected to significantly boost revenues for large-scale industries, including hospitality, retail, and transportation, which are well-positioned to accommodate higher tourist demand, as well as micro, small and medium enterprises (MSMEs).

The success of this legislation hinges not only on the issuance of clear and comprehensive rules and regulations, but also on the readiness of businesses to comply with new requirements brought about by the new law. For businesses and investors, particularly those in the retail sector, a thorough understanding of the legal and regulatory landscape will be essential in maximizing the opportunities presented by R.A. No. 12079. n

1 “PHL hits record high tourism revenue in 2024,” available at https://beta.tourism.gov.ph/news_and_updates/phl-hits-record-high-tourism-revenue-in-2024, last visited on March 9.

2 Commissioner of Internal Revenue v. Magsaysay Lines, G.R. No. 146984, July 28, 2006, 497 SCRA 63.

3 Commissioner of Internal Revenue v. Filminera Resources Corp., G.R. No. 236325, Sept. 16, 2020, 954 SCRA 505.

4 News releases — “PBBM okays proposals to boost tourism,” available at https://pco.gov.ph/news_releases/pbbm-okays-proposals-to-boost-tourism, last visited on March 9.

The views and opinions expressed in this article are those of the author. This article is for general informational and educational purposes only and not offered as and does not constitute legal advice or legal opinion.

 

Christine L. Paulma is an associate of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW), Davao Branch.

(6382) 224-0996

clpaulma@accralaw.com

Higala gets $2.8 million in fresh funds for platform banking rollout

INSTANT PAYMENT system Higala has secured fresh funds from two venture capital firms to extend its seed funding round to $2.8 million, which will help fund its platform bank that will be rolled out next quarter.

The seed fund extension round was led by 1982 Ventures, a Singapore-licensed venture capital firm that invests in fintech startups in Southeast Asia. Also joining the round was Talino Venture Studios.

Higala is owned by Talino Venture Studios and Chemonics International.

“This funding milestone of Higala will greatly benefit its robust ecosystem, which now includes an instant payment system, a platform bank, and an extensive network of collaborators who are all committed to improving financial system resilience and accelerating the adoption of digital banking,” Higala and Talino Venture Studios Chief Executive Officer Winston L. Damarillo said at a media briefing on Tuesday.

“In fact, we have a very good long queue of funding. The next stage is once you launch, we’re going to raise another set of funding to scale the money,” Mr. Damarillo said.

Higala’s platform banking will allow smaller financial institutions to offer digital payment services.

Rizal Commercial Banking Corp. (RCBC) recently partnered with Higala to provide the core technology to SynerFi, an open payments platform.

“Some of the banks that have been publicly announced as part of Higala’s network include the initial 40 participants to RCBC’s SynerFi service and select rural banks that are part of the RCBC ATMGo network,” Higala said.

“This is the realization of BSP’s open finance roadmap initially focusing on open payments use cases making digital transactions more seamless and frictionless,” RCBC Executive Vice-President and Chief Innovation and Inclusion Officer Angelito M. Villanueva said. — A.E.O. Jose

National Government fiscal performance

THE NATIONAL Government’s (NG) budget surplus narrowed in January, as state spending growth outpaced that of revenue collection, the Bureau of the Treasury (BTr) said. Read the full story.

National Government fiscal performance

How PSEi member stocks performed — March 18, 2025

Here’s a quick glance at how PSEi stocks fared on Tuesday, March 18, 2025.

Peso edges up before US Fed policy review

BW FILE PHOTO

THE PESO inched up against the dollar on Tuesday before the US Federal Reserve’s two-day policy meeting, which was scheduled to start overnight.

The local unit closed at P57.295 per dollar on Tuesday, strengthening by half a centavo from its P57.30 finish on Monday, Bankers Association of the Philippines data showed.

The peso opened Tuesday’s session stronger at P57.21 against the dollar. Its worst showing was at P57.36, while its intraday best was at P57.20 versus the greenback.

Dollars exchanged rose to $1.11 billion from $1.02 billion on Monday.

“The dollar-peso initially traded lower on softer-than-expected US retail sales and manufacturing data, but bounced back to trade at a tight range on market caution ahead of the Fed meeting,” a trader said in a phone interview

The weaker data supported bets that the Fed could resume its easing cycle within the year, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Wednesday, the trader expects the peso to move between P57 and P57.50 per dollar, while Mr. Ricafort sees it ranging from P57.20 to P57.40.

“The local currency might continue to gain ground [on Wednesday] on likely softer US housing data overnight,” a second trader said, forecasting a range of P57.15 to P57.40.

US retail sales rebounded marginally in February as consumers pulled back on discretionary spending, reinforcing the growing uncertainty over the economy against the backdrop of tariffs and mass firings of federal government workers, Reuters reported.

Nonetheless, the report from the Commerce department on Monday suggested that the economy continued to grow in the first quarter, though at a moderate pace.

Retail sales rose 0.2% last month after a downwardly revised 1.2% decline in January, which was the biggest drop since November 2022, the Commerce department’s Census Bureau said.

Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, advancing 0.6% after a previously reported 0.9% drop in January.

That decline followed hefty gains in the fourth quarter and winter storms in many parts of the country in January as well as wildfires in California.

US President Donald J. Trump’s raft of tariffs, which have unleashed a trade war, has ignited worries about inflation as well as job and income losses, developments that could undercut consumer spending. Mass layoffs of public workers as part of an unprecedented campaign by the Trump administration to shrink the federal government are also seen hurting spending.

Federal Reserve officials meeting on Tuesday and Wednesday are expected to leave the US central bank’s benchmark overnight interest rate in the 4.25%-4.5% range, having reduced it by 100 basis points since September, and continue to assess the economic impact of the Trump administration’s policies.

Financial markets expect the Fed to resume cutting borrowing costs in June after it paused its easing cycle in January amid a darkening economic outlook.

The dollar index, which measures the currency against six key rivals, has dropped around 6% from the more than two-year peak of 110.17 hit in mid-January. It was last up 0.13% at 103.59. — A.M.C. Sy with Reuters

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