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New Cebu Container Port construction to start this year — DoTr

BW FILE PHOTO

THE Department of Transportation (DoTr) is targeting to start the construction of the New Cebu Container Port within this year. 

“For the New Cebu Container port, hopefully we can start [the construction] this year,” Transportation Undersecretary for Maritime Elmer Francisco U. Sarmiento told reporters on the sidelines of a ports and logistics forum on Wednesday.

The New Cebu Container Port, valued at about P10 billion, will manage all foreign containerized cargo to complement the Cebu Baseport.

Mr. Sarmiento said the DoTr is still awaiting approval from the National Economic and Development Authority Board.

The Transportation department initially targeted to commence construction work in 2022.

The container port, located in Tayud, Consolacion, Cebu has a capacity of two 2,500 twenty-foot equivalent units and will be equipped with four quay cranes.

In 2018, the Department of Finance signed a $172.64-million loan agreement with the Export Import Bank of Korea for the project.

The government will provide P1.4 billion or $26.09 million for the port project, which seeks to free up existing seaport in Cebu province and to provide efficient and reliable transport infrastructure for seamless flow of goods and services in the region.

The DoTr is targeting to put up 200 new ports by 2028 to improve connectivity. — Ashley Erika O. Jose

Philippines rises in Global Soft Power Index 2024

The Philippines climbed nine spots to 52nd place out of 193 nations with an overall index score of 39.8 out of 100 in the latest edition of the annual Global Soft Power Index by brand valuation consultancy firm Brand Finance. The index ranks nations according to their “soft power” or their ability to influence others through persuasion and attraction.

 

Philippines rises in Global Soft Power Index 2024

Anatomy of Philippine loans

Borrowing money is a common practice among Filipinos, deeply rooted in their culture and traditions. Known as “Utang,” borrowing to meet daily needs or financial goals has become a norm in Filipino society. Despite economic challenges, borrowing remains a viable option for many Filipinos to manage their finances effectively.

One of the primary reasons Filipinos take out loans is to manage existing debts. While it may seem counterintuitive, obtaining a loan to pay off existing debts can provide temporary relief from imminent payment obligations. This practice is common among individuals striving to maintain financial stability amidst fluctuating economic conditions.

Another prevalent reason for borrowing is to venture into business opportunities. Despite initial skepticism about the risks involved, many Filipinos see loans as a means to overcome capital limitations and pursue entrepreneurial endeavors. Starting a business, no matter the scale, is seen as a step towards financial independence and growth.

Preparing for significant life milestones such as weddings, welcoming new family members, home repairs, or renovations also drives individuals to seek loans. These events often require substantial financial resources, and loans provide a practical solution to meet these expenses without significant disruptions to daily life.

Medical emergencies can arise unexpectedly, and not everyone has sufficient savings to cover such expenses. Loans offer a lifeline in these situations, ensuring access to necessary medical treatments without compromising financial stability.

According to a survey on consumer expectations during the fourth quarter of 2023, more than 50% of surveyed households in the Philippines took out loans to purchase basic goods. Additionally, about 27% applied for loans to start or expand their businesses, highlighting the diverse reasons behind loan acquisitions.

When it comes to borrowing money, Filipinos have several options to consider. 5/6 lending, a practice that originated in the 1970s, remains popular despite its high-interest rates, reflecting the accessibility and convenience it offers for daily financial needs. Paluwagan, a traditional community-based lending system, provides an informal yet effective way to pool resources among peers. Private lenders, especially online platforms, have emerged as go-to sources for quick and hassle-free loans with minimal requirements.

The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX.

The lending market in the Philippines is dynamic and multifaceted, with banks, nonbanking financial institutions (NBFIs), and government lenders playing key roles in catering to diverse financial needs. Banks offer a wide range of loan products with flexible terms and competitive interest rates, appealing to individuals and businesses alike. NBFIs such as microfinance institutions and credit cooperatives focus on financial inclusion and empowering underserved communities through accessible loan options. Government financial institutions prioritize national development priorities and support key sectors of the economy, contributing significantly to overall economic stability.

Loan statistics in the Philippines provide valuable insights into the borrowing landscape. As of As of November 2023, the total loan portfolio reached P12.88 trillion which was 9.4% higher than that of the previous year, highlighting the significant role loans play in the economy. Consumer loans, motor vehicle loans, credit card receivables, and salary loans constitute major segments of the loan portfolio, reflecting diverse borrowing needs across sectors.

Demographic factors such as age, income level, employment status, marital status, and location significantly influence borrowing patterns and loan approvals in the Philippines. Younger borrowers and those with lower incomes may face challenges accessing larger loan amounts or favorable interest rates compared with more established borrowers. Marital status also plays a role, with married individuals having higher loan approval rates than singles.

Economic and political factors such as GDP growth, inflation rates, unemployment rates, government policies, financial stability, and market conditions impact loan statistics and market trends. Stable economic conditions, coupled with proactive government interventions, contribute to a healthy lending environment despite occasional challenges such as bad loans and economic uncertainties.

The COVID-19 pandemic brought unprecedented challenges to the lending market, prompting shifts in borrower behavior and necessitating relief measures such as loan moratoriums and stimulus packages. The resilience of the financial sector, as evidenced by asset growth and manageable NPL ratios, reflects adaptive strategies and collaborative efforts across stakeholders.

Looking ahead, digitalization and fintech innovations are expected to shape the future of lending in the Philippines. Online loan applications, blockchain technology, and regulatory frameworks will play pivotal roles in enhancing accessibility, transparency, and efficiency in lending practices. Balancing innovation with regulatory safeguards will be crucial to maintaining a stable and inclusive lending ecosystem that meets evolving borrower needs while mitigating risks effectively.

In conclusion, understanding the anatomy of loans in the Philippines requires insights into borrowing motivations, lending dynamics, market trends, and regulatory influences. By navigating these interconnected factors, individuals and businesses can make informed financial decisions and leverage loans as strategic tools for growth and financial stability in the ever-evolving economic landscape of the Philippines.

 

Reynaldo C. Lugtu, Jr. is the founder and CEO of Hungry Workhorse, a digital, culture, and customer experience transformation consulting firm. He is a fellow at the US-based Institute for Digital Transformation. He is the chair of the IT Governance and Digital Transformation Committee at the FINEX Academy. He teaches strategic management and digital transformation in the MBA Program at De La Salle University. The author may be e-mailed at rey.lugtu@hungryworkhorse.com

Transgenderism and cross-dressing in universities

CASPARGIRL-FLICKR

A discussion steadily creeping through the academe is the issue of cross-dressing and of students insisting that they be addressed by their “preferred pronouns” and names that do not correspond with the names indicated in their birth certificates.

That the foregoing is causing confusion and difficulties would be an understatement. And such is magnified by Republic Act No. 11313 or the “Safe Spaces Act.” Section 3.d of the law defines “gender” as “a set of socially ascribed characteristics, norms, roles, attitudes, values and expectations identifying the social behavior of men and women, and the relations between them.”

The law’s implementing rules and regulations point out that “transphobic remarks” are any statements “in whatever form or however delivered that are indicative of fear, hatred, or aversion towards persons whose gender identity and/or expression do not conform with their sex assigned at birth.”

That such is ambiguous and purely subjective on the part of the listener is obvious. It is also unmoored from longstanding Philippine historical, legislative, and even judicial understanding of gender being intrinsically connected to one’s sex.

RA 11313 does not only hold employers, teachers, or any person in authority accountable. It unconstitutionally threatens everyone that does not subscribe to the idea of gender fluidity and transgenderism. It makes everyone: colleagues, male or female, the elderly or minors, government officials, teachers and school administrators, even complete strangers, liable. No exemption is made for religious beliefs or academic freedom. In fact, higher responsibility is placed on schools.

In this regard, the points of Carl Trueman, a Professor of Biblical and Religious Studies at Grove City College are relevant:

“Gender ideology refers to a system of belief that holds that there is a difference between sex and gender and to a spectrum of beliefs that practically deny the significance of bodily sex for personal identity. This may take the form of a distinction between sex as biological and gender as a social construct. Alternatively, proponents of gender ideology argue that biological sex is itself a social construct and that gender as a term refers to a psychological reality that is the real core of a person’s identity,” he wrote in the article “Gender Ideology and the Future of the Human Person,” published by The Heritage Foundation on March 20, 2023.

Thus, the “rejection of biologically grounded sexuality also has obvious implications for broader social policy. If there is no such thing as human nature, there can be no such thing as a common purpose or common good. Any claim to such would be read as a manipulative power play, an attempt by one group to control another. Neither human rights nor human obligations would have any natural status. The notion of society as constituted by nothing more than contractual relationships would be reinforced and philosophically irresistible. And in practical terms this would shift power towards the state or to large corporations as the only institutions capable of enforcing some kind of social order,” he wrote.

“Finally, personal identity would be plunged into chaos. If the question ‘What is a woman?’ is proving so hard for so many to answer today, it is because the question ‘What is a human?’ has become impossible to answer, too.”

In other words, the law and the academe’s failure to firmly oppose assertions of gender constructs, random pronouns, and transgender ideology effectively render the “male” and “female” categorization of no practical meaning.

But all this is with profound individual and social cost, as sociologist and Texas University professor Mark Regnerus lucidly explains in a 2015 article in Public Discourse: A Journal of the Witherspoon Institute.

Citing a study that came out in February of 2015 in the British Journal of Education, Society, and Behavioural Science, Regnerus wrote: “Results reveal that, on eight out of 12 psychometric measures, The risk of clinical emotional problems, developmental problems, or use of mental health treatment services is nearly double among those with same-sex parents when contrasted with children of opposite-sex parents. The estimate of serious child emotional problems in children with same-sex parents is 17%, compared with 7% among opposite-sex parents, after adjusting for age, race, gender, and parent’s education and income. Rates of ADHD were higher as well — 15.5 compared to 7.1%. The same is true for learning disabilities: 14.1 vs. 8%.”

Regnerus concludes by saying, “biology matters — as new research released this week confirms — and no amount of legislation, litigation, or cheerleading can alter that. Whether the high court will elect to legally sever the rights of children to the security and benefits of their mother’s and father’s home is anyone’s guess.” (“New Research on Same-Sex Households Reveals Kids Do Best With Mom and Dad,” Mark Regnerus, Feb. 10, 2015, Public Discourse: A Journal of the Witherspoon Institute; citing “Emotional Problems among Children with Same-Sex Parents: Difference by Definition,” Donald Sullins, British Journal of Education, Society and Behavioural Science, Jan. 25, 2015)

Bottomline, there is no jurisprudence, in fact no law, that recognizes the LGBTQIA++ and particularly transgenders as a “protected class.” Indigenous peoples, handicapped children, single mothers, Muslims, and even entrepreneurs have actual specific Constitutional or congressional laws that particularly recognize them and their rights. In the case of the LGBTQIA++, no law explicitly recognizes it. Not even the Safe Spaces Act refers to it. Instead, what the latter does mention is “sexual orientation.”

Yet, the term “sexual orientation” itself is questionable for legal or policy purposes because in order for it to merit the status of a “protected class” for purposes of “equal protection” clause considerations, then it becomes necessary to establish that such “class … exhibit[s] obvious, immutable, or distinguishing characteristics that define them as a discrete group.” The LGBTQIA++ inherently cannot not satisfy that condition (see Bowen v. Gilliard, 483 U.S. 587, 603, 1987; quoting Massachusetts B. of Retirement v. Murgia, 427 U.S. 307, 313–14, 1976).

The American Psychological Association (APA) itself describes sexual orientation as a “range of behaviors and attractions” and reports that “research over several decades has demonstrated that sexual orientation ranges along a continuum, from exclusive attraction to the other sex to exclusive attraction to the same sex.” More emphatically, “there is no consensus among scientists” on why particular orientations develop. In other words, despite extensive research already done on the LGBTQIA++, scientists still cannot conclude whether sexual orientation is determined by “genetic, hormonal, developmental, social, [or] cultural influences.”

As for transgenderism, the Supreme Court itself declared (in Silverio, 2007) that “the determination of a person’s sex made at the time of his or her birth, if not attended by error, is immutable.”

Considering Congress’ misstep in enacting the Safe Spaces Act, the academe is now left with the responsibility to stand for not only its constitutional rights to academic freedom, religion, and speech but also ensure that its faculty and students uphold the reality that one’s sex/gender is inexorably linked to biology.

Otherwise, if universities can’t have the courage to stand up for truth, then they might as well pack up and close down for sheer inutility.

The views expressed here are his own and not necessarily those of the institutions to which he belongs.

 

Jemy Gatdula read international law at the University of Cambridge. He is the dean of the Institute of Law of the University of Asia and the Pacific, and is a Philippine Judicial Academy lecturer for constitutional philosophy and jurisprudence.

https://www.facebook.com/jigatdula/

Twitter  @jemygatdula

Creative economy’s share in GDP falls further in 2023

THE VALUE of the Philippines’ creative industry reached P1.72 trillion in 2023, despite slowing growth, the Philippine Statistics Authority (PSA) reported on Thursday. Read the full story.

 

Creative economy’s share in GDP falls further in 2023

How PSEi member stocks performed — March 21, 2024

Here’s a quick glance at how PSEi stocks fared on Thursday, March 21, 2024.


Filinvest Land to hold virtual Annual Stockholders’ Meeting on April 19

 

 


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Expanded senior, PWD discount scheme to take effect March 25 

PHILIPPINE STAR/EDD GUMBAN

A JOINT ORDER expanding special grocery discounts to senior citizens and persons with disabilities (PWDs) was signed on Thursday and is expected to take effect on March 25.

In a statement, the Department of Trade and Industry (DTI) said that the joint administrative order (JAO) signed by the DTI, the Department of Agriculture (DA), and the Department of Energy (DoE) will increase the special discounts for senior citizens to P125 per week from P65 on their purchases of basic necessities and prime commodities (BNPCs).

Subject to review every five years, the JAO also increased the purchase cap to P2,500 from P1,300 per week, which had been the cap for 14 years.

“The discount is for the exclusive use of senior citizens and PWDs, with no provision for carrying over any unused amount to the following weeks,” the DTI said. 

“Moreover, the joint order reiterates the right of senior citizens and PWDs to purchase their basic goods through a representative, extends the discounts to online purchases, and clarifies the rule against double discounts,” it added.

On a monthly basis, the new order raised the total value of goods that could be purchased to P10,000 from the previous limit of P5,200. However, it does not apply to barangay-registered microbusiness establishments and cooperatives.

“We recognize the valuable contributions of our senior citizens and PWDs to our society, and this initiative reiterates our unwavering commitment to ensure their access to essential goods,” according to Trade Secretary Alfredo E. Pascual.

“Providing senior citizens and the differently abled with additional discounts on agricultural products forms part of President Ferdinand Marcos, Jr.’s vision of providing Filipinos with affordable food and better nutrition,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. said.

“This special discount will be magnified once our strategy to produce more food by modernizing agriculture bears fruit,” he added.

The goods that will be covered by the JAO are the BNPCs defined by the Price Act, and the discounts under the order are separate from the 20% statutory discount granted under the Expanded Senior Citizens Act of 2010 and An Act Expanding the Benefits and Privileges of PWDs.

The draft of the order is accessible through the DTI website and is expected to take effect once published on March 25.

Retailers have previously raised concerns about the implementation of increased discounts on BNPCs and called it a “burden” that the private sector needs to bear.

In particular, Steven T. Cua, president of the Philippine Amalgamated Supermarkets Association, Inc., said that if the government will not allow the discounts to be deductible, “retailers will have to resort to jacking up prices.”

However, according to the DA, the JAO will allow businesses that grant the special discounts to deduct these from their income tax payments.

The JAO stems from an initiative of Speaker Ferdinand Martin G. Romualdez to raise the weekly discount to a total of P500 per month, which he announced last month.

Citing the Philippine Statistics Authority, the DA said that around 15 million Filipinos are aged 60 or older, while around 12% of the population is estimated to be severely disabled based on the 2020 census. — Justine Irish D. Tabile

2025 budget preparations ‘on track,’ DBM says

BUDGET SECRETARY AMENAH F. PANGANDAMAN — COURTESY OF DEPARTMENT OF BUDGET AND MANAGEMENT FACEBOOK PAGE

PREPARATIONS for the 2025 national budget remain ‘on track,’ the Department of Budget and Management (DBM) said on Wednesday.

On the sidelines of a conference, Budget Secretary Amenah F. Pangandaman told reporters that government agencies have submitted their Tier 1 proposals, which cover budgets for ongoing programs.

“By the end of March, Tier 1 would be completed… and then we’ll ask them to submit their Tier 2,” she said.

She said no issues have cropped up as yet to delay the submission of the budget.

“Government agencies are used to this. This is our third budget (under the Marcos administration), and they know their priorities already.”

Under the Constitution, the National Expenditure Program, or the National Government’s spending plan for next year, must be submitted to Congress within 30 days after the President’s State of the Nation Address.

The DBM is scheduled to transmit budget documents to Congress on July 22.

Next year’s national budget is P6.12 trillion, or 6.1% higher than the spending plan for 2024.

“The Fiscal Year 2025 budget aims to continuously address the socio-economic issues our country has been facing, e.g., high food prices, increasing fuel prices, and the scars that the pandemic has left, among others,” the DBM has said. 

In a national budget memorandum released this week, the DBM said the budget priorities for Tier 2 proposals included food security, health, education, social protection, and shovel-ready infrastructure projects. — Beatriz Marie D. Cruz

NEDA to roll out real-time agri market info system

PHILSTAR FILE PHOTO

THE National Economic and Development Authority (NEDA) said it plans to set up an information system supplying real-time agricultural data.

“What we have agreed on is really to implement right away the national information marketing network… because we see that there are inefficiencies in our market,” NEDA Undersecretary Rosemarie G. Edillon told reporters on the sidelines of the United Nations Development Programme Investor Map for the Philippines launch.

“For example, you’re a trader from Pampanga, and you find out that it’s cheaper (to trade) in Tarlac, then you go to Tarlac,” Ms. Edillon said in Filipino.

The information system would be patterned after the National Information Network (NIN) under Republic Act No. 8435 or the Agriculture and Fisheries Modernization Act.

The NIN was meant to harmonize inconsistent agricultural data from various agencies and research institutions.

Separately, NEDA’s food inflation subcommittee is looking into the Department of Agriculture’s (DA) delayed distribution of minimum access volume (MAV) quota allocations this year.

In February, the DA proposed the suspension of the MAV for pork and corn to lower dependence on imports. The quota for pork was to be reallocated to give processors a larger share compared to the traders.

Last month, the Meat Importers and Traders Association wrote to Agriculture Secretary Francisco P. Tiu Laurel, Jr., saying the quotas should have been distributed earlier this year.

Under the MAV, overseas producers of selected commodities are allowed to ship in goods up to a quota for a lower tariff, with shipments exceeding the quota charged higher rates. The MAV system is a feature of the World Trade Organization’s trading system.

In December, President Ferdinand R. Marcos, Jr. signed Executive Order 50, which extended the low-tariff regime for pork, rice, corn and coal.

Tariff rates were kept at 15% (within the MAV quota) and 25% (for shipments exceeding the quota) for pork, 5% (within the quota) and 15% (for shipments exceeding the quota) for corn, and 35% (all countries of origin) for rice until Dec. 31. — Beatriz Marie D. Cruz

FMCG spending growth seen decelerating to 0.4% this year

DATA and analytics company Kantar said growth in in-home spending for fast-moving consumer goods (FMCG) in the Philippines could slow drastically to 0.4% this year from the 6% posted in 2023.

At the launch of the FMCG Outlook 2024 Philippines on Thursday, Laurice Obana, shopper insights director at Kantar’s Worldpanel Division, said the projection for 2024 is on the conservative end due to the market’s volatility.

“In 2023, we saw a little bit of normalcy because after so many months, or even years, of heightened inflation, we started to see it controlled or going down. So it is actually a reason for us to be optimistic,” Ms. Obana said.

“However, we do know that circumstances can also be volatile, and so while there is a lot of reason for us to be optimistic, we think that maybe the proper way to approach things in 2024 is to be cautiously optimistic,” she added.

She said that the report projected continued recovery in certain FMCG categories like healthy foods, pampering products and home care items.

“In 2023, which we’re seeing to be continuing in 2024, we saw that there’s continued recovery in certain categories such as healthier options like soy milk, yogurt, and cereals, pampering is also recovering, home care including pet food, cleaning and paper products,” she said.

“Some categories are also being deprioritized and we see it in baby categories and hygiene,” she added.

She said consumer purchases of alcohol will fall, while a slowdown in infant or growing-up milk and baby diapers has also been noticed.

To further support growth in spending for FMCGs, Kantar said that businesses should make every purchase valuable for shoppers.

“Filipino shoppers will continue to look for value in every purchase and they are not limited to affordable brands or smaller packs,” it said.

“Brands must therefore find their edge to gain the attention of the buying public,” it added.

Businesses were also advised to explore FMCG channels as shoppers explore “an expanded repertoire of FMCG channels.”

“Observed in 2023 and continuing till the present, almost half of households shopped across 6 to 8 channels — from sari-sari stores and grocery stores to supermarkets and e-commerce sites,” Kantar said.

Meanwhile, businesses are also advised to focus on health and pets which Kantar said are commending more of the shopping budget.

“In 2024, Kantar believes that Filipinos will continue to allot a budget for their pets, with pet food gaining relevance among pet owners. Pet grooming and pet accessories are areas that they may also spend more on this year,” it added. — Justine Irish D. Tabile

Mining tax regime proposal seen reaching Senate plenary by May

THE SENATE is hoping to start by May plenary debate on a measure seeking to simplify and amend the fiscal regime for the mining industry, a senator said on Thursday.

“We want to sponsor it when we come back in May,” Senator Juan Edgardo M. Angara, who heads a ways and means subcommittee tackling House Bill No. 8937, which seeks to simplify the tax regime for the industry, told reporters after a hearing on the measure.

The Chamber of Mines is looking into the Department of Finance’s (DoF) proposal of reduced windfall profit tax tiers, and plans on seeking a middle ground that simplifies the fiscal regime without increasing taxes by too much, Michael T. Toledo, the chamber’s chairman, told BusinessWorld.

“We are 100% for the House proposal,” he said. “There are just differences in tiers as stated in our position paper, we made an analysis; the lowering of the tiers would increase the average effective tax rate by about 1%.”

He said that the mining industry is overtaxed, adding that measures to amend the fiscal regime should consider local and national taxes that mining companies have to deal with.

The House of Representatives approved the bill in September. Its version proposes margin-based royalties and a windfall profit tax on large-scale miners. There is no Senate counterpart bill.

The DoF is proposing a simpler mining regime with just four windfall profit tax tiers from 10 tiers under the House bill.

The current regime requires mining companies to pay corporate income tax, excise tax, royalty, local business tax, real property tax, and fees to indigenous communities.

The Mines Geosciences Bureau (MGB) backs the House proposal retaining royalties for metallic and non-metallic operations within mineral reservation at 5% of the market value of the gross output, MGB Assistant Director Marcial Mateo said at the hearing.

The MGB also supports the DoF’s proposal of a royalty of 3% for metallic mining operations outside reservations, and 1% for non-metallic operations.

Philex Mining Corp. Senior Vice-President and Chief Financial Officer Romeo B. Bachoco said a simpler mining tax regime would spur processing and production of copper and gold, noting that foreign investors are reluctant to fund mining projects here due to lack of “certainty in the tax regime.”

“We are banking on the passage (of this House measure),” (which is) “very timely for us and will address the concerns of our investors alike.”

The DoF is expecting its proposals for the tax regime to generate an average of P10.23 billion a year from 2025 and 2028.

The government also expects to generate P5.5 billion from royalties from miners operating within mineral reservations, P1.31 billion from royalties on miners outside reservations and P3.37 billion from windfall profit taxes.

“This is only the first step in developing the mining industry, we need to establish (mineral) processing first and proper valuation of ores is needed,” Finance Assistant Secretary Karlo Fermin S. Adriano said at the hearing. — John Victor D. Ordoñez