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2023: banner year for Torre Lorenzo; sets the tone for 2024

TLDC was named as the Best Boutique Developer in PropertyGuru’s 2023 Philippines Property Awards, as well as Best Integrated Work from Home Development for 3Torre Lorenzo, Best Co-living Space for lyf Malate Manila, and Best Alternative Accommodation Development for lyf Malate Manila.

The start of the new year is an opportunity to reflect on the accomplishments and lessons from the past year. For Torre Lorenzo Development Corp. (TLDC), 2023 was another banner year, highlighted with launches, openings, and turnovers.

As the company prepares to celebrate its 25th anniversary in 2024, here’s a lookback at last year’s noteworthy achievements of the pioneer in premium university residences in the country:

Elevating lifestyles

Torre Lorenzo has always been bullish in the Davao Region. One of its remarkable moves last year is the launch of Crown Residences, its first premium residential development in Davao City. It is part of Tierra Davao, Torre Lorenzo’s integrated-use development that is home to its hospitality developments, dusitD2 Davao and Dusit Thani Residence Davao.

In June 2023, as part of expanding its hospitality portfolio in Manila, the Company opened The Suites at Torre Lorenzo Malate and lyf Malate Manila — two hospitality developments in partnership with The Ascott Limited. Both properties are enjoying good reception from their respective markets.

In September 2023, it started to turn over units of Torre Lorenzo Loyola, a premium residential development in Quezon City, and launched a sequel West Tower right beside it two months after.

In Lipa, Batangas, construction commenced for Merano, the second residential tower in Tierra Lorenzo Lipa.

Powering sustainable luxury

In 2023, Torre Lorenzo also announced that Dusit Thani Lubi Plantation Resort, its flagship hospitality development in Davao de Oro, has started to use clean and renewable solar energy. It unveiled a 756-unit solar farm with an output of 415.8kWp, equivalent to 6,084 trees planted yearly. The energy generated would reduce carbon emissions by 251 metric tons annually.

Enabling more communities

As it continues to grow, Torre Lorenzo also strengthened its efforts to engage with the communities it does business with.  Last year, it turned over a child development center and educational materials to the children of Barangay Pindasan, Mabini, Davao de Oro. It also partnered with Montessori educators Corazon Aguinaldo-Lim and Karen Ann Vera for a teacher’s training session for Pindasan’s child development workers.

Education has always been important to TLDC. In its continuing support for the educational needs of its host communities, Torre Lorenzo donated 500 bags with school supplies to public school students in Mandug, Davao City, and Pindasan, Davao de Oro.

It also turned over the second tranche of its scholarship support to the Armed Forces of the Philippines Education Benefit System Office (AFPEBSO) amounting to P1 million. This is part of a partnership agreement to fund scholarships worth P10 million over a 10-year period for college-aged beneficiaries of military servicemen and women who were killed in action.

Forging meaningful partnerships

TLDC forged partnerships to enhance community experiences. Last year, it partnered with De La Salle – College of Saint Benilde Multimedia Art students to help highlight Manila City’s historic and dynamic character on the walls of its co-living residences, lyf Malate Manila.

TLDC also sealed a partnership with the National University Lipa (NU Lipa) in Lipa City, Batangas for the accommodation of the university’s faculty, staff, and incoming students for AY 2023-2024 (foreign and local). The partnership will support the growing demand for quality education and accommodation in emerging urban centers like Lipa City.

Earning industry recognitions

For the third time, TLDC was named as the Best Boutique Developer in PropertyGuru’s 2023 Philippines Property Awards. It also received the following awards during the event: Best Integrated Work from Home Development for 3Torre Lorenzo, Best Co-living Space for lyf Malate Manila, Best Alternative Accommodation Development for lyf Malate Manila.

For the second consecutive year, TLDC was also recognized as one of HR Asia’s Best Companies to Work For in Asia as well as one of the Most Caring Companies in Asia.

A milestone year

2024 is a big year for Torre Lorenzo. As it celebrates its 25th year, it also reaffirms its commitment to its vision of designing for tomorrow, and look forward to exciting things ahead.

It will continue to solidify its position as the pioneer in premium university residences as it diversifies its portfolio with other product categories.

Pipeline projects to watch out for from TLDC in its milestone year includes a residential development in the university belt in Manila that features young and hip spaces for the students in the area.

In Quezon City, plans for a more luxurious and exclusive residential tower within the neighborhood of Torre Lorenzo Loyola is under way.

In Davao, an enhanced sequel to Crown Residences will be introduced to supplement the other developments in Tierra Davao where dusitD2 Davao and Dusit Thani Residence Davao are also located.

The much-anticipated Dusit Princess, the first international-branded hotel in Batangas located at Tierra Lorenzo Lipa will start construction.

“2023 was a good year for Torre Lorenzo. With our pipeline projects in Manila, Lipa, and Davao, we are bullish and are looking to ride our growth momentum this 2024,” says Lorenzo.

 

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BOP position swings to $3.7B surplus in 2023

BW FILE PHOTO

By Keisha B. Ta-asan, Reporter

The country’s balance of payments (BoP) position swung to a surplus in 2023, exceeding the projection of the central bank, amid higher inflows of remittances, trade in services, and national government foreign loans.

Data from the Bangko Sentral ng Pilipinas (BSP) on Friday showed the full-year BoP stood at a surplus of $3.67 billion in 2023, a turnaround from the $7.26 billion deficit in 2022.

Last year’s excess was also more than three times (233%) the $1.1-billion expectation of the BSP.

Philippines: Balance of Payments (BoP) position“This development reflected mainly the improvement in the balance of trade alongside the higher net inflows from personal remittances, trade in services, and foreign borrowings by the National Government (NG),” the BSP said.

The BoP shows a glimpse of the country’s transactions with the rest of the world. A surplus shows that more funds came into the country, while a deficit means more money fled.

In December alone, the BoP surplus rose by 4.9% to $642 million from the $612-million excess in the same month in 2022. It was also a turnaround from the $216-million shortfall in November 2023..

“The BOP surplus in December 2023 reflected inflows arising mainly from the NG’s net foreign currency deposits with the BSP, net income from the BSP’s investments abroad, and the BSP’s net foreign exchange operations,” the central bank said.

The BoP surplus in December was largely due to the maiden issuance of the government’s Sukuk bonds last month, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a note.

The Philippines raised $1 billion from the sale of 5.5-year Sukuk bonds in early December. The net proceeds from the Sukuk bonds completed the government’s external funding target that will be used for general purposes, including budgetary support.

Continued growth in dollar inflows to the country also supported the BoP, which mitigated the impact of a wider trade deficit in recent months, Mr. Ricafort said.

The Philippines’ trade-in-goods deficit jumped by 26.3% to $4.69 billion in November, from the $3.72-billion gap a year ago, latest data from the local statistics agency showed. It marked the widest trade deficit in seven months.

At its end-December position, the BoP reflects a gross international reserves (GIR) level of $103.8 billion, inching up by 1.07% from the $102.7 billion as of end-November.

The level of dollar reserves is enough to cover 7.8 months of imports of payments and services and primary income. It is also about six times the country’s short-term external debt based on original maturity and 3.8 times based on residual maturity.

“Going forward, any improvement in BoP data and in GIR data for the coming months could help provide greater cushion/support/buffer for the peso exchange rate versus the US dollar especially against any speculative attacks,” Mr. Ricafort said.

Better BoP data could also help strengthen the country’s external position, he added.

China Banking Corp. Chief Economist Domini S. Velasquez said anticipated rate cuts from central banks globally will help the country’s BoP position this year.

The BSP is widely expected to start cutting borrowing costs in the second half of the year amid easing inflation.

The Monetary Board hiked interest rates by 450 basis points (bps) from May 2022 to October 2023. This has brought the key policy rate to 6.5%, the highest in 16 years.

Inflation stood at 3.9% in December from 4.1% in November, settling within the 2-4% government target for the first time in nearly two years. Year-to-date, inflation averaged 6%.

The central bank projects a BoP surplus of $400 million this year, equivalent to 0.1% of the economy.

Philippines suspends onion imports

PHILSTAR

MANILA — The Philippines’ agriculture ministry said on Friday it has ordered the suspension of onion imports until May to protect domestic farmers.

The ban can be extended up to July depending on domestic harvest of the high value crop, the ministry said in a statement.

A supply glut in the Philippines has significantly pushed down prices of onions over the past year, according to government data. — Reuters

Get ready for an AweSM Sinulog experience at SM City Cebu

Celebrate Sinulog, the country’s grandest festival, at your favorite SM City Cebu. Immerse yourself in the excitement of festive events at the core of the Sinulog Festival this month of January.

The Sinulog Festival in Cebu is a vibrant and deeply-rooted religious celebration that traces its origins to the Feast of the Sto. Nino.

SM City Cebu offers a vibrant and culturally rich experience for both locals and tourists this Sinulog 2024.

RELIGIOUS EXHIBITION

To start off the celebration, SM City Cebu and Ramon Aboitiz Foundation, Inc. present the Treasures of Devotion, a virtual exhibition of religious objects or objects of devotion. Through photo and video documentation, the religious objects found in diocesan and parish museums and private collections in Cebu were catalogued, unearthing layers of memories and experiences accrued by generations of believers and discovering stories of faith and devotion as shown, shaped, and sustained by these religious artifacts. The exhibition is located at the first level of the North Wing, and is ongoing until Jan. 31.

FUN & ENTERTAINMENT FOR FAMILIES & FRIENDS

Celebrate Sinulog in bold and vibrant hues! Islands Souvenirs’ Cut & Style at SM City Cebu invite you to explore their Sinulog Merch pop-up store for the best fusion of tradition and contemporary style this year. Check-out the Cut & Style booth at the lower ground level of SM City Cebu.

COLORFUL INSTALLATIONS

Take a picture at SM City Cebu’s AweSM Sinulog Square installation located at the North Wing Atrium, and experience a haven of festivity, where tradition meets modern splash of colors and rhythms.

MOUTHWATERING LOCAL DISHES

Food lovers check this out! Visit the StrEATs of Cebu booths where one can enjoy a gastronomic feast of Cebu’s lechon and other Cebu delicacies located at the lower ground level of the main mall.

HUGE DISCOUNTS & PROMOS

Shoppers will also enjoy huge discounts and exciting promos in the Sinulog Sale from Jan. 19 to 21. Get into the festive spirit with a great selection of sale items of up to 50% off mall wide.

And to complete the Sinulog experience, witness the AweSM Cebu Dance Parade around the mall from Jan. 19-21 beginning at 10A.M.

Dive into the festive feels this Sinulog 2024 and experience an ultimate #AweSMFestival.

For more updates, checkout SM City Cebu (Official) on Facebook or Instagram.

 

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Australian consumers increasingly spend only on bargains – Westpac data

REUTERS

SYDNEY – Australian consumers are tending to spend only when there are bargains to be had, as punishing home loan payments and cost of living pressures weigh on overall outlays, data from Westpac showed on Friday.

The Westpac Card Tracker Index stood at 137.2 for the week ending Jan. 13, up 3 index points from mid-December, but on a quarterly basis, spending fell as shoppers forked out less on services such as travel and dining out.

The base of 100 reflects average activity in 2019.

“The Christmas-New Year period has been a sporadic one for consumer-related card activity with bursts around key sales weeks followed by sharp pull-backs,” said Matthew Hassan, a senior economist at Westpac.

“The picture is broadly consistent with consumers more actively seeking out discounts to deal with cost of living pressures.”

Separate data from ANZ on Friday showed a solid seasonal uplift in non-food retail spending in the last quarter of the year thanks to the increasing popularity of Black Friday sales, but the level of spending remained low.

The official retail sales figures, due on Jan. 30, are likely to show consumer spending turned soft again after a jump in November, which would reinforce wagers that the Reserve Bank of Australia will not have to raise rates further in February.

All of Australia’s major banks have called a peak in interest rates. Both Commonwealth Bank of Australia and Westpac expect the first rate cut in September, while NAB and ANZ predict it will come in November.

“As we move into the second half of the year, we think that the combination of fiscal easing, slower inflation and a rate cut in November will support spending,” ANZ analysts said in a note. – Reuters

Japan Airlines names former cabin attendant as first female president

Source: https://www.facebook.com/JapanAirlinesWorldwide/

TOKYO – Japan Airlines named its first female president on Wednesday, a former cabin attendant who rose through the ranks to senior management, taking a deeply symbolic step in a country struggling to close a vast gender gap at work.

Mitsuko Tottori, a senior managing executive officer who joined JAL in 1985, the year it suffered one of the worst crashes in airline history, will become president from April 1, it said in a statement.

The appointment comes as Japanese companies face increasing pressure to boost gender diversity and tackle a gender pay gap that is the worst among the Group of Seven nations and almost double the average of the OECD grouping of advanced economies.

“There are female employees out there who are struggling with their career steps or going through big life events,” Ms. Tottori told a news conference.

“I hope my appointment as a president can encourage them, or give them the courage to take the next step.”

The change comes as the airline seeks to recover from the pandemic-era downturn and tourists flock back to Japan.

Airline safety is under a fresh spotlight after a collision between a JAL plane and a Japanese Coast Guard aircraft at Tokyo’s Haneda airport this month. All 379 people aboard the airliner escaped as it burst into flames.

JAL has said Tottori acquired a “high level of insight and field experience” in safety operations and service.

The current president, Yuji Akasaka, will become chairperson while continuing to hold a representative director title, the airline said in its statement.

Yoshiharu Ueki, the current chairman, will retire from his post in April and leave the director position upon shareholder approval in June.

JAL has set itself a target for women to make up 30% of managers across the group by the end of the fiscal year to March 2026.

By the end of March 2023, the corresponding figure was 22.8%. – Reuters

BSP: Rate hike transmission significant

REUTERS

MANILA — The pass-through effect of the Philippine central bank’s series of rate hikes since 2022 has been “quite significant”, a senior central bank official said on Friday.

“In all the rates that we were monitoring, pass throughs are quite significant so transmission is intact,” Bangko Sentral ng Pilipinas (BSP) Deputy Governor Francisco G. Dakila Jr. told reporters.

Since May 2022, the BSP has hiked its benchmark rate by a total of 450 basis points to rein in inflation. In December, it kept its policy rate steady at 6.5% for a second straight meeting.

Headline inflation last month returned to target to 3.9%, but average inflation for 2023 stood at 6.0%, well above the central bank’s 2%-4% target.

The rate-setting monetary board will meet on February 15 to review interest rates. — Reuters

North Korea says tests underwater nuclear drone, criticizes US-led joint drills

MICHA BRANDLI-UNSPLASH

SEOUL — North Korea has conducted a test of its underwater nuclear weapons system in a protest against this week’s joint military drills by South Korea, the United States and Japan, state media KCNA said on Friday.

The test of the “Haeil-5-23” system, a name North Korea has given to its nuclear-capable underwater attack drones, was carried out by the defence ministry’s think tank in the waters off its east coast, the report said, without specifying a date.

The ministry’s unnamed spokesman accused the United States, South Korea, and Japan of “getting frantic” with military exercises, warning of “catastrophic consequences.”

The three countries’ navies held their three-day regular drills until Wednesday, alongside the US aircraft carrier Carl Vinson, as part of efforts to improve their responses to Pyongyang’s evolving nuclear and missile threats.

“Our army’s underwater nuke-based countering posture is being further rounded off and its various maritime and underwater responsive actions will continue to deter the hostile military maneuvers of the navies of the US and its allies,” the North Korean ministry spokesman said in a statement, according to KCNA.

North Korean state television has aired previous atmospheric explosion tests, which have been monitored by US and South Korean authorities, but the reported underwater weapon has not been independently verified.

Dubbed “Haeil,” which means tsunami, the new drone system was first reportedly tested in March 2023, and state media said it was intended to make sneak attacks in enemy waters and destroy naval strike groups and major operational ports by creating a large radioactive wave through an underwater explosion.

The latest reported underwater test came days after North Korea fired a new intermediate-range, solid-fuel hypersonic missile, which Washington, Seoul, and Tokyo condemned as a serious violation of UN Security Council resolutions.

The three allies’ nuclear envoys gathered in Seoul on Thursday, also condemning Pyongyang’s arms trade with Russia and increasingly hostile rhetoric, just as North Korea’s foreign minister visited Moscow and met with President Vladimir Putin. — Reuters

Skyworth unveils brand ambassador, awards ten ‘Sky Heroes’

From L-R: Sparkle GMA Artist Center Talent Manager Jan Navarro, Sparkle GMA Artist Center Assistant Vice-President for Talent Imaging and Marketing Anne Puno-Ignacio, Sparkle GMA Artist Center Vice-President Joy Marcelo, Skyworth Brand Ambassador Gabbi Garcia, Skyworth General Manager James Sun, and Skyworth Marketing Director Frank Guo — All photos by Mong Pintolo/The Philippine Star

Skyworth Philippines announced the official launch of Gabbi Garcia as its first and newest brand endorser and recognized its awardees for the Sky Hero Awards in their event at Alta Guia in Taguig last Jan. 12.

Guests were encouraged to come wearing modern barong and Filipiniana, establishing the ambiance of celebration not just of technology and entertainment but also the rich cultural tapestry of the Philippines.

Beyond the role of an actress and global endorser, Ms. Garcia is also a visionary and empowered woman. Along with this, she advocated for positive change, evident in her life advocacies on body positivity, women empowerment, mental health awareness, gender inclusivity, and many more which was fitting for the role of an “EyeCon.”

Gabbi Garcia with Skyworth’s 86″ SUE7800 Google TV

Ms. Garcia’s role as the “EyeCon of EyeCare TV” extends beyond endorsing technology. It symbolizes a visionary trendsetter empowering women and inspiring a generation to see the world differently.

The program covered her introduction as Skyworth’s brand endorser, an interactive Q&A session with members of the press, an official contract signing, and the brand’s messaging to the public.

Gabbi Garcia elegantly graces the stage in her modern-styled Filipiniana alongside the event host, Jing Castaneda.

Furthermore, Skyworth announced the awardees for the Sky Hero Awards, a recognition program in partnership with Junior Chamber International (JCI) to honor unsung heroes contributing to community rebuilding after the COVID-19 pandemic.

This awarding sought to further highlight the goal of Skyworth Philippines as a brand deeply rooted in Filipino culture and committed to creating an authentic and meaningful connection for the Filipino community.

The Sky Hero Award was aligned with the JCI RISE initiative, which stands for Rebuild-Invest-Sustain-Evolve. Its main purpose was to lift up individuals and communities who suffered during the pandemic era.

The Sky Hero Award was categorized into three categories: Business Recovery, Workforce Empowerment, and Mental and Physical Health Awareness.

The first SkyHero Awardees, composed of a diverse group including teachers, government employees, volunteers, social workers, a physician, an entrepreneur, and a salt farmer coming from different parts of the Philippines

The awardees represented a diverse range of community heroes who, despite the challenges, have made significant impact. These inspiring individuals include:

  1. Agnes S. Begino, a dedicated community social worker contributing to economic development, workforce empowerment, and mental health preservation
  2. Alladin Cuevas, a barangay chairman from Tondo, Manila who demonstrated exceptional leadership and service during challenging times
  3. Dr. Dex Macalintal, a physician from Lipa City, Batangas, recognized for promoting physical and mental well-being through innovative strategies
  4. John Jeffrey M. Dela Rea, a public school teacher focusing on child education and reading comprehension, addressing the decline in education during the pandemic
  5. Juvien Galano, an advocate of sustainable waste management, promoting the circular economy and responsible consumption
  6. Marivic Abunales Baston, a pioneer teacher in digital blended education, implementing innovative learning methods for students in Quezon City
  7. Mary Val Antoinette Urian, a barangay councilor from Meycauayan, Bulacan, who demonstrated resilience and compassion in supporting various community needs
  8. Suzette A. Prieto, a women’s rights advocate and public school teacher who empowers women and promotes mental and physical health
  9. Trisha-Marie O. Albeus, an advocate of sustainable mushroom production, addressing economic challenges in their community; and
  10. Wilfredo Dayrit, a salt farmer from Noveleta, Cavite who preserves traditional salt-making practices and promoting workforce empowerment

These awardees were honored not only for their individual achievements but also for their collective impact on community development, reflecting Skyworth’s commitment to positive social change.

Skyworth Chinese and Filipino executives wearing the traditional Barong and Filipiniana attire

The awarding was presided over by James Sun, general manager of Skyworth Philippines, and was graced by the presence of Ms. Garcia, alongside representatives from JCI.

The awardees received Skyworth products, cash prizes for seed funding, starting capital or training scholarships, and trophies.

Moreover, the appreciation given to the awardees transcended material rewards by virtue of the inspiration they inculcated in each of their communities through their stories of hard work, perseverance, and hope.

 

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US says Houthis launched missiles at tanker ship but no damage caused

STOCK PHOTO | Image by Gerhard Traschütz from Pixabay

WASHINGTON — The Iran-backed Houthi militia launched two anti-ship ballistic missiles at a US-owned tanker ship late on Thursday that hit the water near the vessel but caused no injuries or damage, the U.S. military said.

The incident, the latest amid growing tensions in the Red Sea that have disrupted global trade and raised fears of supply bottlenecks, took place around 9 p.m. Yemen time (1800 GMT), according to a US Central Command post on X, formerly Twitter.

The Houthis, who control most of Yemen, earlier on Thursday claimed responsibility for the attack, saying they targeted the ship Chem Ranger with naval missiles that caused “direct hits.”

Monitoring service TankerTrackers.com said on social media that the “fairly small chemical tanker left the Red Sea port of Jeddah, Saudi Arabia for Kuwait, but her AIS (automatic identification system) went offline on (Tuesday) before proceeding south past Yemen.”

The Houthis say their attacks are in solidarity with Palestinians under attack from Israel in Gaza.

Since last week, the United States has launched strikes on Houthi targets in Yemen, and this week returned the militia to a list of “terrorist” groups. President Joe Biden told reporters on Thursday that air strikes would continue even if they may not be halting the Houthi attacks. — Reuters

House panel endorses CREATE MORE

TAXPAYERS line up at the Bureau of Internal Revenue office in Intramuros, Manila, April 18, 2022. — PHILIPPINE STAR/RUSSELL PALMA

By Beatriz Marie D. Cruz, Reporter

A HOUSE of Representatives committee on Thursday endorsed to members a bill that seeks to lower the income tax on both local and foreign companies to 20% under a so-called enhanced deduction regime, while streamlining the tax refund system for corporations.

Substitute House Bill No. 9794 or the CREATE MORE (CREATE to Maximize Opportunities for Reinvigorating the Economy) bill will amend Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

The committee report will be taken up at the House Ways and Means panel next week before it is debated at the plenary.

The measure seeks to enhance fiscal and nonfiscal provisions of the Tax Code and “reconcile disparities between the CREATE Act and its implementing rules,” Albay Rep. Jose Ma. Clemente S. Salceda, who heads the Ways and Means Committee, said in a fact sheet that accompanied the committee report.

The CREATE law had imposed a 25% income tax on companies and limited the 20% rate to local enterprises with income not exceeding P5 million ($89,513) and assets worth P100 million and below. It also restricted the zero-rating on value-added tax (VAT) on local purchases to the sale of goods and services directly used in a project of a registered exporter.

Under the proposed CREATE MORE, domestic and export companies, including those inside ecozones and freeports, will be entitled duty exemptions, VAT exemption on importation, and the VAT zero-rating of local purchases.

Companies outside ecozones and freeports will also enjoy VAT zero-rating on local purchases as well as duty exemption on the importation of capital equipment, raw materials, spare parts, or accessories, according to a copy of the committee report.

The proposed law also seeks to establish a 20% corporate income tax rate on local and foreign corporations under the enhanced deduction income tax regime.

Registered business enterprises (RBEs) will also enjoy a 200% additional deduction for power cost, to be accumulated during the Income Tax Holiday (ITH) period. They may also enjoy 100% additional deductions in expenses for trade fairs, missions or exhibitions.

The bill also seeks to include the tourism industry under the coverage of the reinvestment allowance, and to apply the net operating loss carryover within five years after the ITH entitlement period.

The proposed law also seeks to impose a 1 1/2% RBEs local tax in lieu of any and all taxes to be collected by IPA.

VAT incentives for RBEs that enjoy incentives prior to the enactment of CREATE will be extended from 10 to 12 years, if there is no tax refund or credit granted. RBEs may also enjoy duty incentives for the remainder of the 10-year transitory period.

Under the measure, the power to grant and approve tax incentives would be returned to investment promotion agencies (IPAs), which is currently handled by the Fiscal Incentives and Review Board (FIRB).

“The President may, in the interest of national economic development, or upon the recommendation of the FIRB, modify the mix, period or manner of availment of incentives provided under this Code or craft the appropriate financial support package for a highly desirable project or a specific industrial activity,” according to a copy of the committee report.

The bill essentially limits the FIRB’s power to grant and approve fiscal incentives, upon the recommendation of President Ferdinand R. Marcos, Jr.

The measure also allows the information technology and business process outsourcing sector to “conduct business under alternative work arrangements.”

Under the CREATE MORE bill, the Bangsamoro Board of Investments and the Bangsamoro Economic Zone Authority will also be included under the list of IPAs.

If enacted into law, foreign nationals with executive positions and nonresident aliens in supervisory, technical and advisory positions will receive a working visa, while a special skills visa may be granted to foreign nationals with “highly specialized skills.”

Domestic market enterprises in creative industries listed under RA 11904 or the Philippine Creative Industries Development Act will also be entitled to the ITH period.

Eleanor L. Roque, tax principal of P&A Grant Thornton, said lawmakers must ensure that the bill’s tax provisions take into account the Philippines’ membership in the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS).

The OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) seeks to address tax avoidance schemes among its 140 member countries.

“An improvement of the set of incentives granted to qualified investors is expected to improve our attractiveness as an investment destination. The 20% income tax rate with the enhanced deduction is a generous incentive to investors. Depending on their cost structures, it can lead to a really low tax payable,” Ms. Roque said in a Viber chat.

“However, since the Philippines has joined the international efforts against tax avoidance by joining the OECD/G20 Inclusive Framework on BEPS and Pillar 2 initiatives, the bill should also consider how the incentives will impact on companies covered by BEPS-Pillar 2,” she said.

“We must ensure that taxes for transactions and activities in the Philippines are paid in the Philippines and not in other jurisdictions who have adopted local rules to implement Pillar 2.”

Jose Enrique A. Africa, executive director of think tank IBON Foundation, said lowering taxes under the CREATE MORE would reduce government revenues.

“One of the big selling points of the CREATE law, [is to] make our corporate income taxes quote unquote competitive with others in the region,” Mr. Africa said at a news briefing. “That attitude is eroding our fiscal space.”

“The resources for development won’t come if the government is choosing to lower income taxes, [on] those [who] should contribute more to the revenues of the government,” he added.

PHL to grow fastest in the region this year — AMRO

A VENDOR arranges fruits at a stall in San Andres, Malate, Dec. 27, 2023. — PHILIPPINE STAR/KRIZ JOHN ROSALES

By Luisa Maria Jacinta C. Jocson, Reporter

THE PHILIPPINES is projected to be the fastest-growing economy in the region this year amid resilient domestic demand, the ASEAN+3 Macroeconomic Research Office (AMRO) said on Thursday.

“The Philippine economy has held up very well despite high inflation and interest rates, and it’s much less dependent on exports than other countries in the region,” AMRO Chief Economist Hoe Ee Khor said in a virtual briefing on Thursday.

In its latest Regional Economic Outlook quarterly update, AMRO kept its Philippine gross domestic product (GDP) growth projection at 6.3% for this year, unchanged from its annual consultation report in November.

AMRO’s ASEAN+3 GDP growth forecasts

The Philippines’ growth is the fastest among Association of Southeast Asian Nations (ASEAN) members, ahead of Cambodia (6.2%), Vietnam (6%), Indonesia (5.2%), Malaysia (5%), Laos (4.7%), Thailand (3.3%), Myanmar (3.2%), Singapore (2.6%), and Brunei Darussalam (2.4%).

In the ASEAN+3 region, the Philippines is also ahead of China (5.3%), Hong Kong (3.5%), South Korea (2.3%), and Japan (1.1%).

If the 6.3% GDP growth is realized, however, this would be below the Philippine government’s 6.5-7.5% target for 2024.

However, Mr. Khor cited several risks that could dampen growth this year, such as a spike in global commodity prices; weaker economic growth in China, financial spillovers from tighter US monetary policy, a potential recession in the US and Europe, and US-China geopolitical tensions.

He also flagged the possible impact of the El Niño, which may stoke rice prices.

The latest data from the state weather bureau showed that a strong El Niño is expected to continue through January and is seen to persist until May.

AMRO said the Philippines likely grew by 5.6% in 2023, the same projection it gave in November. This also makes it the economy with the fastest growth in the region but falls short of the government’s 6-7% target.

“As it turns out, I think we were too optimistic on the growth momentum. Momentum is weaker than expected,” Mr. Khor said.

Latest data from the Philippine Statistics Authority (PSA) showed that the economy grew by 5.5% in the nine-month period. Fourth-quarter and full-year 2023 GDP data will be released on Jan. 31.

For ASEAN+3, AMRO expects stronger growth this year at 4.5%, slightly higher than its projection of 4.4% for 2023.

“The region did relatively well last year, better than what we expected, based on better exports and moderating inflation. We expect growth to pick up this year on strong exports and resilient domestic demand,” Mr. Khor added.

AMRO also noted that the recovery of China’s property sector and the rebound in tourism will help support growth in the region this year.

TIGHTER FOR LONGER
Meanwhile, AMRO kept its inflation forecast for the Philippines at 3.6% this year, slightly slower than the Bangko Sentral ng Pilipinas’ (BSP) forecast of 3.7%

“In 2024, headline inflation is likely to remain on a moderating trend in line with the continued normalization of global commodity prices,” AMRO said.

Headline inflation averaged 6% in 2023, the second straight year that inflation breached the BSP’s 2-4% target band.

AMRO also said that the BSP must continue to keep rates tighter for longer until inflation remains within target.

“We agree with the BSP view that the rates should remain tight until inflation is down to within target,” Mr. Khor said.

The Philippine central bank has raised rates by a cumulative 450 bps from May 2022 to October 2023, bringing the benchmark rate to a 16-year high of 6.5%.

BSP Governor Eli M. Remolona, Jr. also earlier signaled that policy easing will only be considered if inflation settles firmly within the 2-4% target.

“As long as the economy is doing strongly, we don’t see the urgency for the BSP to cut rates,” Mr. Khor added.

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