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China’s BYD in talks with Philippines for EV plant

Original image from https://www.byd.com.ph/

The Philippines, Vietnam and Indonesia are competing to host an electric-vehicle assembly plant for BYD Co., the world’s second-largest maker of EVs, according to a top Philippine trade and investment official.The Chinese auto giant is in an “advanced stage of discussions” with the Philippines, the Southeast Asian nation’s Trade Undersecretary Ceferino Rodolfo said in an interview on Wednesday. BYD representatives scoured the Philippines for possible factory sites during a visit late last year and the company may decide on the site during the second quarter, said Rodolfo, who also heads the Board of Investments.BYD, which is already set to build its first EV production facility in Southeast Asia in Thailand, is still exploring whether the new factory will be a full-blown assembly plant or a final-assembly facility with car parts shipped in from overseas, said Lanie Dormiendo, director for the Philippines’ International Investments Promotion Service.A spokesperson for Shenzhen-based BYD said the company doesn’t have “any relevant information to disclose.”Talks between BYD and Indonesia over a potential investment in an EV factory in the country are ongoing, according to a person familiar with the matter who asked not to be named as the discussions are private. The Indonesian government is offering a slew of tax holidays, incentives and access to battery raw materials to convince the carmaker to set up there rather than expanding in a neighboring country like Thailand, the person said.BYD didn’t immediately respond to a request for comment on Indonesia.Southeast Asian nations are racing to attract investments in EVs as global carmakers pivot away from the combustion engine, a transition that China has been dominating. Great Wall Motor Co. has already set up a production line in Thailand, while nickel-rich Indonesia has drawn interest from both BYD and rival Tesla Inc.With an economy that expanded the most in nearly half a century last year, the Philippines is courting top-tier producers of EVs and batteries like BYD with tax breaks and other incentives under a law passed last year as rising oil prices help accelerate the global shift away from gas-fueled cars.Indonesia and the Philippines, which together account for almost half the world’s nickel reserves, are a good fit for electric-car and makers of batteries where the metal is a key component. Rodolfo said BYD, which uses lithium iron phosphate in its EV batteries, is considering the Philippines for its growth potential.“We’re not a low-cost destination, but we are a destination for companies who are looking for solutions for their Net Zero carbon commitments,” he said.The Philippines has previously lost out on investment opportunities to its neighbors given its power rates are among the costliest in the region. But it is positioning as a hub for sustainable manufacturing facilities, Rodolfo said. The country aims to increase the share of renewable energy to half of its electricity mix from around 30% currently by 2040.Chinese battery making giant Contemporary Amperex Technology Co. Ltd., or CATL, is also in talks with Philippine government officials to invest in a plant to process nickel for electric car batteries, along with its subsidiary Brunp, said Rodolfo, 52, who’s been with the government’s trade and investment agencies for a decade.CATL did not immediately respond to a request for comment.Rodolfo was part of President Ferdinand Marcos Jr.’s entourage in the US and China, two of nine nations the Philippine leader has visited since he assumed office nearly eight months ago. Those trips generated about $63 billion in investment commitments, according to his office. – Bloomberg

JPMorgan should reveal more about CEO Dimon’s role in Epstein accounts -US Virgin Islands

REUTERS

NEW YORK – JPMorgan Chase & Co. should disclose more about Chief Executive Jamie Dimon’s role in business decisions related to Jeffrey Epstein, the US Virgin Islands said in its lawsuit accusing the bank of aiding in the financier’s sex trafficking.

In a Thursday filing in Manhattan federal court, the US Virgin Islands said JPMorgan‘s wrongful conduct continued at least until August 2019, when Mr. Epstein killed himself.

But it said JPMorgan has agreed to provide relevant documents for Mr. Dimon only through 2014, and should provide documents for the next five years.

The US Virgin Islands called Mr. Dimon “a likely source of relevant and unique information” about decisions to retain Mr. Epstein as a client, and discussions on Mr. Epstein‘s referrals of prominent and wealthy potential clients.

According to the filing, the business referral relationship continued after Mr. Epstein stopped being a client.

JPMorgan is seeking the lawsuit’s dismissal. It did not immediately respond to requests for comment after business hours on the latest filing. Mr. Dimon has not been accused of wrongdoing.

The US Virgin Islands is suing JPMorgan for unspecified damages, saying the bank should have known about its “high-risk” former client’s misconduct on a private island he owned there.

It has also criticized former JPMorgan private banking chief Jes Staley for staying on good terms with Epstein and exchanging emails that discussed young women and contained sexual content.

Mr. Epstein was a JPMorgan client from 2000 to 2013, maintaining his relationship even after pleading guilty in 2008 to a Florida state prostitution charge.

He died in August 2019 at age 66 in a Manhattan jail cell while awaiting trial on sex trafficking charges.

A separate complaint filed last month by Mr. Epstein victims against JPMorgan, which the bank also wants dismissed, said Mr. Dimon and other executives decided to “monitor the public news” about Mr. Epstein‘s misconduct, yet did not sever ties with Mr. Epstein.

Mr. Dimon and Mr. Staley, who later served as Barclays Plc’s chief executive, are not defendants in either lawsuit.

Mr. Staley has acknowledged having a friendship with Mr. Epstein but denied knowing about his alleged crimes.

The case is Government of the US Virgin Islands v JPMorgan Chase Bank NA, US District Court, Southern District of New York, No. 22-10904. – Reuters

Biden nominates former Mastercard CEO Ajay Banga to head World Bank

REUTERS

WASHINGTON – US President Joe Biden nominated former Mastercard Inc. CEO Ajay Banga to lead the World Bank, betting the India-born executive’s ties to the private sector and emerging markets will jump-start the 77-year-old institution’s overhaul to better address climate change.

Mr. Biden‘s nomination on Thursday of Banga, 63, now a US citizen, all but assures he will assume a job that oversees billions of dollars of funding, as it races to help developing countries address climate change.

The World Bank (WB) on Wednesday said it expects to select a new president by early May to replace David Malpass, who announced his resignation last week after months of controversy sparked by his initial refusal to say if he accepted the scientific consensus on climate change, and pressure by Treasury Secretary Janet Yellen for him to adopt “bolder” reforms.

“I think the speed of the nomination, less than 48 hours after the WB board launched the process, reflects a desire to discourage any challengers and wrap it up quickly,” said Scott Morris, a senior fellow at the Center for Global Development and a former US Treasury official.

Mr. Biden noted Mr. Banga‘s decades of experience building global companies and public-private partnerships to fund responses to climate change and migration and said he had a proven track record working with global leaders.

“Ajay is uniquely equipped to lead the World Bank at this critical moment in history,” Mr. Biden said in a statement, hailing the business executive’s Indian roots and knowledge of the challenges facing developing countries and ability to mobilize private capital to tackle big problems.

Mr. Banga‘s work in India and other emerging markets, his “obsession” with expanding financial inclusion, and his deep knowledge of new technologies could help bridge the divide between rich countries and emerging markets, said Luis Alberto Moreno, who worked closely with Banga while serving as president of the Inter-American Development Bank.

“He can really be a force for change,” Mr. Moreno said, noting that Mr. Banga enjoyed the trust of financial markets.

India was expected to support Mr. Banga‘s candidacy, according to Krishnamurthy Subramanian, the former top economic adviser to the Indian government who now serves as India’s executive director at the International Monetary Fund. “It’s an elegant solution.”

 

DIVERSITY

The bank has historically been headed by someone from the United States, its largest shareholder, while a European heads the International Monetary Fund (IMF), but developing countries and emerging markets have pushed to widen those choices.

Mr. Banga‘s nomination is the first to be made public, but the bank will accept nominations from other member countries through March 29. Germany, another major shareholder, this week said the job should go to a woman since the bank has never been headed by a woman.

A senior US administration official said they did not know if other countries would nominate candidates for the post.

Asked about Washington’s decision not to nominate a woman, the official said Mr. Banga had “a personal conviction and excellent track record promoting diversity, equity and inclusion in the work that he does” and would bring that view to the bank.

But Jeff Hauser, who heads the progressive Revolving Door Project, demanded Biden retract the nomination of a top official from a “rapacious international private equity firm” who had previously worked only in private sector firms.

“Neither private equity, nor MasterCard, nor Citigroup, nor PepsiCo, nor Nestlé, nor Dow promote shared prosperity. They all do vastly more to exacerbate inequality than to fight it,” he said in a statement.

Oxfam International said the next bank president should be chosen through a transparent global process. “The World Bank is not a US bank, a commercial bank, or a private equity firm. For a job of this stature, we need more than a tap on the shoulder from President Biden.”

Mr. Banga is vice chair of General Atlantic, a US private equity firm that administration officials said has invested over $800 million in EV charging solutions, solar power and sustainable farming.

He retired in December 2021 after 12 years at the helm of Mastercard, where administration officials noted that he helped 500 million unbanked people join the digital economy, averted layoffs of the bank‘s 19,000 employees during the COVID-19 pandemic, and led work on climate, gender and sustainable agriculture.

Vice President Kamala Harris said Banga brought “great insight, energy and persistence” to his role as co-chair of the Partnership for Central America, which has mobilized $4.2 billion in public, private and nonprofit funds to advance economic opportunity in northern Central America. – Reuters

Converge supports ASEAN ICT chiefs’ push for digital inclusion, transformation

Lauds DICT for successful hosting of milestone event

Leading fiber broadband provider Converge ICT Solutions, Inc. (PSE: CNVRG) supports the push of ICT ministers in the ASEAN region for continued digital transformation in Southeast Asia, especially amid ongoing recovery from the COVID-19 pandemic.

This developed as Converge took part in the activities supporting the Philippine-led ASEAN Digital Ministers’ Meeting held in Boracay from Feb. 9-10, 2023.

“As a player ourselves in the digital economy, we are proud of the Philippines’ Department of Information and Communications Technology (DICT) for spearheading the talks as the region makes progress on the ASEAN Digital Masterplan. As a private sector player, we vow cooperation in the ASEAN bloc’s aim for digital transformation particularly in the context of the region’s recovery framework from the COVID-19 pandemic,” said Converge CEO and Co-Founder Dennis Anthony Uy.

During the Digital Ministers’ Meeting, member states were urged to continue implementation of recommended actions in the ASEAN Digital Masterplan 2025, to realize the vision of ASEAN to become “a leading digital community and economic bloc, powered by secure and transformative digital services, technologies and ecosystem.”

Moreover, ASEAN ICT ministers pushed to further intensify cooperation among member states to accelerate the region’s digital transformation efforts to support the ASEAN Comprehensive Recovery Framework, also known as the bloc’s consolidated exit strategy from the COVID-19 crisis.

At the end of the two-day forum, the Ministers released the Boracay Declaration, summing up the agreements arrived at following their closed-door discussions.

Converge supported the milestone event by providing a high bandwidth or 1 Gigabit per second (Gbps) pure fiber connectivity to the meeting venue in Shangri-La Boracay, ensuring smooth communications among all delegates, senior officials, management, and the organizers. Converge also participated in the trade fair and sponsored the gala night which was attended by ICT leaders from the region and the country.

“We congratulate the DICT for spearheading the successful ADGMin in Boracay. As a member country, the Philippines is given the opportunity to host this important event once every decade. We commend the DICT for ensuring a safe, pleasant, and smooth experience for all the delegates,” said Jesus C. Romero, Converge Chief Operations Officer, who represented the company during the event.

“We are also very proud to be a connectivity partner for the DICT as we know that strong and reliable connectivity is a critical component in the success of such events. Not only are we able to highlight the beauty of the country through destinations such as Boracay. But we can also showcase the world-class digital infrastructure available in these locations,” added Mr. Romero.

The ADGMin brought together heads of delegation of the 10 Southeast Asian members — Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam — and its dialogue partners China, Japan, Republic of Korea, India, the United States of America, the European Union, and the International Telecommunications Union.

With the theme, “Synergy Towards a Sustainable Digital Future,” the gathering gave the avenue for ASEAN countries to forge stronger partnerships in addressing key challenges, both present and future in their respective countries, the region, and the world.

Providing connectivity to the ADGMin also signals the availability of Converge to customers in Boracay.

“We are thrilled to be here in Boracay, one of the most amazing places in the world. Our Go Deep and Go National strategy are bearing fruit as Converge has now arrived in what is dubbed as one of the best beaches in the world. Now Boracay can also move forward to having a world-class digital infrastructure powered by the Converge end-to-end fiber network. We look forward to delivering great things for big and small businesses, government and the residents of the island,” said Mr. Romero.

Visit convergeict.com/business for more details.

 

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Championing a new age of sustainable, inclusive Philippine business

By Bjorn Biel M. Beltran, Special Features and Content Assistant Editor

Many organizations around the world, including the United Nations and the World Economic Forum, urge countries and governments to never forget the lessons imparted by the coronavirus pandemic.

In the span of two years, the world was upended and it was only through the advancement of technology and the collaboration of the international community that stopped the virus from causing more damage than it already had.

Moving forward, calls to “Build Back Better” urged governments, legislators, policy makers, industry leaders, and the public to consider sustainability as a necessity in ensuring the recovery from the COVID-19 crisis to be durable and resilient.

“Unchecked, global environmental emergencies such as climate change and biodiversity loss could cause social and economic damages far larger than those caused by COVID-19. To avoid this, economic recovery packages should be designed to ‘build back better’,” the Organisation for Economic Co-operation and Development wrote in a report.

Corporations and major businesses, then, have a responsibility to do their part to steer the future in a direction that is inclusive, sustainable, and advantageous for everyone. Good governance is now essential.

This is the main driver behind the growing relevance of environmental, sustainability, and governance (ESG) standards, and why the Institute of Corporate Directors (ICD) hold its annual ASEAN Corporate Governance Scorecard (ACGS) Golden Arrow Awards.

The recently concluded awards program honors the best publicly traded firms in the Philippines in terms of corporate governance according to the ACGS, serving as models of the pinnacle of what a company should be in the post-pandemic world.

The ACGS evaluates how well businesses facilitate shareholders’ rights and equitable treatment, relate to their various stakeholders, ensure transparency and accountability through prompt disclosure of material information, and assess how effectively the board sets the company’s strategic direction, oversees management, and upholds the board’s accountability to the business and its shareholders.

The 184 questions on the scorecard are based on information that is readily accessible on the websites of the companies. It aspires to improve corporate governance norms and procedures throughout the nation and attract investors to well-governed publicly traded Philippine enterprises.

Companies that received at least 80 points in the ACGS Assessment are given the Golden Arrow. At this point, the business has demonstrated visible compliance with both the ACGS’s international best practices and the Philippine Code of Corporate Governance. There will be five performance levels in corporate governance awarded.

Winners

The businesses that received Golden Arrows this year are as follows:

China Banking Corp. (China Bank) President William C. Whan (center) receives the five-arrow recognition for China Bank from (L-R) SEC Chairman Emilio B. Aquino, ICD Vice-Chair & President Ma. Aurora D. Geotina-Garcia, PSE President and CEO Ramon S. Monzon, and ICD Chairman Atty. Cesar L. Villanueva.

Three businesses reached a score range of 120 to 130 points, and thus won the top five-arrow recognition. Ayala Land, Inc., China Banking Corp., and Globe Telecom, Inc. were recognized by the ICD as the cream of the crop in terms of how they implement ESG standards into their operations.

Following them in the 110 to 119 score range with the four-arrow recognition are Aboitiz Power Corp.; Ayala Corp.; Bank of the Philippine Islands; BDO Unibank, Inc.; Belle Corp.; First Gen Corp.; Manila Water Co., Inc.; Philippine National Bank; Rizal Commercial Banking Corp.; SM Investments Corp.; SM Prime Holdings, Inc.; and The Philippine Stock Exchange, Inc.

In the 100 to 109 score range with the three-arrow recognition are 2GO Group, Inc.; Aboitiz Equity Ventures, Inc.; AC Energy Corp.; APC Group, Inc.; AyalaLand Logistics Holdings Corp.; Cebu Holdings, Inc.; First Philippine Holdings Corp.; GT Capital Holdings, Inc.; Integrated Micro-Electronics, Inc.; LT Group, Inc.; Manila Electric Co. (Meralco); Metro Pacific Investments Corp.; Metropolitan Bank & Trust Company; Philex Mining Corp.; PLDT, Inc.; San Miguel Food and Beverage, Inc.; Security Bank Corp.; and Semirara Mining and Power Corp.

With the two-arrow recognition at 90 to 99 points are AREIT, Inc.; Cebu Air, Inc.; DMCI Holdings, Inc.; Eagle Cement Corp.; Far Eastern University, Inc.; Megawide Construction Corp.; Nickel Asia Corp.; Petron Corp.; Philippine Seven Corp.; Phinma Corp.; Premium Leisure Corp.; PXP Energy Corp.; Roxas Holdings, Inc.; Union Bank of the Philippines; Universal Robina Corp.; and Wilcon Depot, Inc.

Finally, winning a golden arrow recognition at 80 to 89 points are A Brown Company, Inc.; ABS-CBN Corp.; AllHome Corp.; Alliance Select Foods International, Inc.; Asia United Bank Corp.; Atlas Consolidated Mining and Development Corp.; Axelum Resources Corp.; Benguet Corp.; Cemex Holdings Philippines, Inc.; Century Pacific Food, Inc.; Concepcion Industrial Corp.; Converge Information and Communications Technology Solutions, Inc.; Cosco Capital, Inc.; Crown Asia Chemicals Corp.; and D&L Industries, Inc.

Also on this list are Discovery World Corp.; Euro-Med Laboratories Phil., Inc.; Filinvest Development Corp.; Filinvest Land, Inc.; House of Investments, Inc.; International Container Terminal Services, Inc.; Jollibee Foods Corp.; Lopez Holdings Corp.; Manila Bulletin Publishing Corp.; Megaworld Corp.; MerryMart Consumer Corp.; Philippine Bank of Communications; Philippine Business Bank; RFM Corp.; Robinsons Land Corp.; Robinsons Retail Holdings, Inc.; SBS Philippines Corp.; STI Education Systems Holdings, Inc.; Vista Land & Lifescapes, Inc.; Vivant Corp.; and Xurpas, Inc.

The ACGS is an initiative of the ASEAN Capital Markets Forum (ACMF) that started in collaboration with the Asian Development Bank in 2011. It is aimed at raising the corporate governance standards and practices among ASEAN publicly listed companies (PLCs), making well-governed ASEAN PLCs attractive to investors and promoting ASEAN as an investment asset class.

The Scorecard was benchmarked against international best practices that encourage PLCs to go beyond national legislative requirements.

ESG as a key to long-term prosperity

AboitizPower Vice-President for Reputation Management Suiee Suarez (center) receives the 4-arrow recognition for AboitizPower from (L-R) SEC Chairman Emilio B. Aquino, ICD Vice-Chair & President Ma. Aurora D. Geotina-Garcia, PSE President and CEO Ramon S. Monzon, and ICD Chairman Atty. Cesar L. Villanueva.

AboitizPower, one of the companies awarded four golden arrows, told BusinessWorld in an e-mail how they implement ESG standards into their long-term growth strategy.

“AboitizPower firmly believes that effective corporate governance is key to ensuring an organization’s long-term growth and sustainability,” Mickey Colayco, SVP Chief Legal and Compliance Officer at Aboitiz Equity Ventures, Inc., said.

“In the company, as it is with the entire Aboitiz Group, a robust corporate governance framework ensures that its purpose and strategies are well articulated, properly managed and implemented, in alignment with the overall strategic goals of the Aboitiz Group.”

In its mission of becoming the country’s “first Techglomerate,” AboitizPower reaffirmed its commitment of “Transforming Energy for a Better World” via decarbonization, digitalization and innovation, and growth beyond the core.

One of the biggest endeavors of the company towards this goal is its 10-year growth strategy of expanding its renewable energy capacities to 4,600 megawatts, or 50% of its generation portfolio, by 2030.

“Recently, the Group embarked on what we call the Great Transformation, an attempt to course correct at the level of the individual team member and at the organizational Aboitiz Group level,” Mr. Colayco said.

“Through these efforts, and in its aspiration to be truly sustainable, AboitizPower will become not just a profitable organization, but one that drives positive economic, social and environmental impact over the long term.”

Good governance recognition, a win for AboitizPower efforts in transforming energy for a better world

THE GOLDEN ARROWS. Aboitiz Group receives three plaques of recognition from the ACGS Golden Arrow Awards. Photo shows VP for Corporate Affairs Suiee Suarez (L) who received the 4-arrow plaque of recognition for AboitizPower. With him are Atty. Sammy Santos and Atty. Mailene de la Torre of Aboitiz Equity Ventures, who accepted the 3-arrow plaque of recognition for Aboitiz Equity Ventures, Inc.; and James Ileto, who took the 3-arrow plaque of recognition for Union Bank of the Philippines.

Aboitiz Power Corp.’s Environmental, Social, and Governance (ESG) strategies and efforts hit the mark in the ASEAN Corporate Governance Scorecard (ACGS) Golden Arrow Award, owing to its time-tested values and refreshed purpose of transforming energy for a better world.

In its 2021 ACGS assessment, the 4-arrow recognition AboitizPower received reflected the importance it placed on sustainably managing the organization, attaining the targets it has set for itself, and realizing its strategic growth ambitions. Moreover, it showed their willingness to go beyond national legislative requirements in corporate governance. Beyond complying with the Philippine Code of Corporate Governance, publicly-listed companies are also benchmarked against international best practices.

“I am incredibly proud of our team for this success. This recognition affirms our dedication to upholding the highest corporate governance and ethical standards. It inspires us to continue pushing the boundaries of excellence in all we do,” said AboitizPower President and Chief Executive Officer Emmanuel “Manny” Rubio.

“We will strive for the highest standards of excellence in every aspect of our business as we seek to deliver long-term value to our stakeholders.”

Overall, AboitizPower improved its total score to 111.33 in 2021 from 93.31 the previous year, as it saw marked improvements in metrics that measured the rights of shareholders, the role of stakeholders, disclosure and transparency, and responsibilities of the Board. Year on year, it also maintained its perfect score for the equitable treatment of shareholders.

AboitizPower attributes these developments to its doubling down on its vision of building a sustainable enterprise that generates long-term equitable value for people, planet, and prosperity. It views corporate governance as a two-way street; being an important aspect of how it is sustainably managed and how it manages to build and maintain a relationship of trust with external stakeholders.

The company believes that business growth balanced with a strong social component and healthy environmental practices are key elements to building a sustainable business for its team members, shareholders, and communities now and for generations to come.

While ESG has always been a part of its planning and operations, AboitizPower has become more vocal and active in its advocacies, especially amidst a Great Transformation along with the rest of the Aboitiz Group. As a transformed organization, AboitizPower will focus on decarbonization, digitalization and innovation, and growth beyond the core. To this end, the people of AboitizPower continue to live out the organization’s core values of Integrity, Teamwork, Innovation, Responsibility, and Service Excellence, and are flourishing alongside the accomplishment of the organization’s goals.

In recent years, AboitizPower has improved the volume of public disclosures on its website. This is evidenced by the publishing not just of its standard financial performance, but also of its non-financial performance indicators like its social and environmental impacts.

The AboitizPower Board of Directors has also been more earnest in overseeing and shaping the implementation of the company’s ESG strategies, including the strengthening of its anti-bribery and corruption guidelines, and promotion of sustainable business practices within the company and across its whole value chain.

At the same time, AboitizPower pursues its 10- year growth strategy where it will expand its renewable energy portfolio, called Cleanergy, to 4,600 megawatts (MW) or 50% of its total generating capacity by 2030. AboitizPower will help advance business and communities through the supply of reliable and responsibly-sourced energy from run-of-river, large hydro, solar, geothermal, and wind sources.

AboitizPower’s Great Transformation journey serves to strengthen its role in fueling the country’s economic growth and empowering communities while managing climate-related risks. As it harnesses opportunities brought forth by new technologies and innovations, AboitizPower will continue to elevate the value and scalability of its ESG framework for a better and brighter Philippines.

 

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Customs service through the years

BW FILE PHOTO

Trade is widely seen at the center of economic development. But, on the other hand, when the trade is illicit or goods are smuggled, economic growth could be held back. Hence, it is crucial to make trade facilitation efficient and bolstering border security — a duty handed over to the Bureau of Customs (BoC).

The BoC has been taking on the supervision of import and export cargoes; the prevention and suppression of smuggling; and ensuring lawful collection of revenues. This February, the agency remembers how it has transformed since it was first established as the Philippine Customs Service 121 years ago.

Yet, even as the agency was instituted only in 1902, the history of customs service and trade in the Philippines dates many centuries back, even before the coming of the West to the country. The Philippines has already been trading with its neighbor countries, with the people adopting the barter system of commodities as money were not the medium of exchange then. Before permitting the merchants to engage in their trade, the datus or rajahs collected tributes from them. This, according to BoC, is the country’s earliest form of a tariff.

But just as trade has a long history, so does smuggling. There were merchants who deem the tribute was excessive, thus resorting to evade paying by unloading their goods through concealment and deception, which the BoC considered as smuggling in its primitive form.

The practice of collecting tributes was followed as the Customs Law of the Land.

During the Spanish colonization, when nearly all of the country’s trades became under the full control of Spain, three important statutes involving customs were passed. These included the Spanish Customs Law, which was a concept of ad valorem levied on import and export; the establishment of a Tariff Board, which drew up a tariff of fixed values for all imported articles on which 10% ad valorem duty was uniformly collected; and another Tariff Law in 1891 that lasted until the end of Spanish colonization of the Philippines, which established the specific duties on all imports and certain exports.

The enforcement of the Spanish Tariff Code of 1891 carried on when the Americans came to the Philippines. It remained in effect until the Tariff Revision Law of 1901 was enacted by the Philippine Commission.

Photos from facebook.com/BureauOfCustomsPH

On Oct. 24, 1900, Act No. 33 was passed, which abolished and changed the position of Captain of the Port to Collector of Customs in all ports of entry except the Port of Manila, where the former designation was retained.

The Philippine Commission passed more important laws during the formation of the Civil Government. Among these were the Tariff Revision Law of 1902; the Philippine Administrative Act No. 355, which was followed by the Customs Service Act No. 355 known as the Philippine Customs Service Act; and the Public Act No. 430, which changed the Philippine Customs Service into the Bureau of Customs and Immigration under the supervision and control of the Department of Finance and Justice. When the Department of Justice was separated, the customs service remained under the Department of Finance up until the present.

The Bureau of Immigration eventually became a separate office from the BoC through the Commonwealth Act No. 613.

In 1957, Congress enacted the Republic Act No. 1937 known as the Tariff and Customs Code of the Philippines. It was otherwise known as the “Tariff Law of the Republic of the Philippines,” becoming the first official expression of an autonomous Philippine Tariff Policy.

The law revising the Tariff & Customs Code of the Philippines was passed by Congress in 1972. But before it could be implemented, Proclamation No. 1081 was issued, which declared Martial Law in the country.

On Oct. 27, 1972, the late former President Ferdinand E. Marcos signed Presidential Decree No, 34, which amended the Tariff & Customs Code of the Philippines. On June 11, 1978, the Tariff & Customs Code was further amended, modified, and supplemented by new positions to make the code responsive in accordance with the then New Society’s developmental programs.

The Tariff & Customs Code had to be revised again with the country’s accession to the Customs Co-Operation Council (CCC) so the country’s tariff system would be aligned with the CCC Nomenclature. This led to the Tariff & Customs Code of 1982, revised by virtue of Executive Order No. 688, which is currently enforced.

Several reorganizations took place at the BoC. From the one pursuant to Customs Administrative Order No. 4-65 by authority of Sec. 550 and 551 of the Revised Administrative Code of Republic Act No. 4164 in 1965; the amendment of the Customs Administrative Order No. 4065; the Presidential Decree No. 1 that took effect in 1972; to the Presidential Decree No. 689 in 1975. The BoC’s last major reorganization happened through Executive Order No. 127 after the EDSA Revolution in 1986.

When the computerization program initiated to be implemented, the Management Information System and Technology Group (MISTG) of BoC had to be created in 1998.

Today, the BoC continues to work on its duties on border control, trade facilitation, and lawful revenue collection in the country, with the hopes of becoming a modernized and credible customs administration.

But throughout its 121-year history, the BoC’s journey was not without controversies. It has received a negative impression from the general public, as some regarded it as the “most corrupt” government agency.

In his article published on the WCO (World Customs Organization) News website in 2021, then-Customs Commissioner Rey Leonardo B. Guerrero shared that he was met with abundant challenges when he was appointed in the position in October 2018. These included administrative to operational concerns and systemic deficiencies, which put BoC at risk to corrupt practices. The former commissioner and his team had therefore been doing the work to reform the negatives, for the organization’s transformation, and execute their mandate.

The BoC recounted that it has been in “a state of flux” since the end of October 2018. Former President Rodrigo R. Duterte had directed to put drastic measures in place to address graft and corruption in the agency. In 2019, the BoC began its era of reform and innovation.

In 2020, the Customs Memorandum Order No. 08-2020 took effect, which detailed the guidelines in the implementation of the Zero-Contact Policy. One of the objectives of the policy is to “promote a regime free of perception of graft and corruption by minimizing face-to-face transaction” in the BoC.

Among other initiatives implemented to transform the agency was the Customs Computerization Program. As automation is already part of the BoC’s 10-point priority program in 2019, it has helped the agency manage the situation during the COVID-19 lockdown. As of July 2022, over 91% of Customs processes have been automated. The BoC looks to full digitalization of its processes this year.

Former Commissioner Yogi Filemon L. Ruiz said the BoC carries on with collaboration efforts for the digitalization of customs processes. It also continues enhancing trade facilitation, intensifying border control initiatives, and bettering revenue collections.

“We are confident that with the leadership of our President Ferdinand R. Marcos, Jr. and the guidance of our Finance Secretary Benjamin E. Diokno, we will be able to achieve our goals again this year and for the years to come,” Mr. Ruiz said.

The BoC celebrated its 121st anniversary this February, with the adoption of WCO’s theme for 2023, “Nurturing the Next Generation by Promoting a Culture of Knowledge-sharing and Professional Pride in Customs.” — Chelsey Keith P. Ignacio

A solid standard boosting corporate governance in the Philippines

The COVID-19 pandemic’s effects tolled business enterprises and the overall economy. In addition to the disrupted lives of millions of people, there was a slowdown in the employment rate due to the loss of jobs during the critical period. Add to this the worsening issues of climate change and poverty, which many studies have proven to have been accelerated alongside the said global health crisis.

In light of these issues, businesses face the task of ensuring their operations and practices are meeting their company’s targets and their communities’ needs without compromising the ability of future generations to meet such needs. This is where corporate governance stands as a crucial standard in achieving corporate success, resilience and recovery, as well as relevance to the communities they work with.

One leading corporate governance standard, which many Philippine companies are now adhering to, is the ASEAN Corporate Governance Scorecard (ACGS). This scorecard was conceptualized by the ASEAN Capital Market Forum (ACMF) and the Asian Development Bank (ADB) in 2011. Six member-states of the Association of Southeast Asian Nations (ASEAN) participated in the inception of ACGS, namely Indonesia, Malaysia, the Philippines, Thailand, Vietnam, and Singapore.

As stated in ADB’s recent country reports and assessments on the ACGS, the main objective of the ACGS is to raise the corporate governance standards of publicly-listed companies (PLCs) and give greater international visibility to well-governed companies in members of the ASEAN.

In the report’s foreword, Ramesh Subramaniam, director-general of the Southeast Asia Department at ADB, stressed that as the COVID-19 pandemic further raised the importance of corporate governance, standards like the ACGS are becoming more crucial.

“Recovery requires substantial financial resources especially through the capital markets. It is therefore necessary for corporate governance policies and frameworks to adapt so that existing and new companies can access the capital they need. It is equally important to keep a close eye on various aspects of corporate governance including the duties of the board of directors and disclosure to stakeholders. The ASEAN Corporate Governance Scorecard (ACGS) plays a critical role in addressing this need,” Mr. Subramaniam wrote.

The said report, the director-general added, highlighted that corporate governance standards among ASEAN PLCs have improved over the years. The mean score of PLCs assessed, for instance, improved by 37.4% in 2019 compared to the first assessment in 2012. Compared to 2017 levels, all six participating countries improved in their scores, with Vietnam showing the most improvement with a 32% increase in its score.

In 2012, the Philippines formally began participating in the ACGS. Since then, the Securities and Exchange Commission (SEC) has been strengthening corporate governance practices in the country. In order to educate companies, investors and other government agencies about the goals of the ACGS, the SEC and Institute of Corporate Directors (ICD) began an information campaign that promotes embedding ACGS in business operations.

In addition, to further boost the country’s corporate governance system, the SEC launched a five-year road map called the Philippine Corporate Governance Blueprint in 2015. After being consulted by local companies, governance advocates, academics, and corporate governance stakeholders, the blueprint was established and made use of the Organisation for Economic Co-operation and Development’s (OECD) principles for achieving international corporate governance practices.

Moreover, the blueprint was used to focus on enabling business enterprises in performing exceptional business strategies that helped them to improve the economy and the social well-being of the country.

Also, since November 2015, the SEC have led ACMF Working Group D, the body directly responsible for the ACGS initiative.

Corporate governance is important since it guides businesses on how they should operate. Using the best business practices increases long-term sustainability and resiliency, which can be a key driver in attracting foreign investments. Through ACGS, business leaders and foreign investors can use the obtained information as a tool for making proper investment decision-making processes.

ACGS consists of 184 questions, which are based on the information on publicly available disclosures on the PLCs’ websites. Then, it will assess how well the companies perform in terms of facilitating the shareholders’ rights and equitable treatment, their interaction with stakeholders, ensuring transparency and accountability, and how the board directs and oversees management in the company.

The ACGS evaluation uses two-level scoring among PLCs, showing how fundamental principles of sound corporate governance are put into practice.

The first level is made up of “descriptors or items that are, in essence, indicative of the laws, rules, regulations, and requirements of each ASEAN member state and the basic expectations of the OECD principles.”

The said OECD principles consists of five areas, which the ACGS covers: rights of shareholders, equitable treatment of shareholders, role of stakeholders, disclosure and transparency, and responsibilities of the board.

The second level, meanwhile, includes bonus items reflecting emerging good practices and penalty items when behaviors and occurrences point to inadequate corporate governance.

The evaluation procedure also comprises two rounds of assessment, with the first round consisting of the domestic ranking body (DRB), rating the respective public-listed PLCs; followed by a peer review in the second round.

Following the peer review, conversations are held between the local DRB and peer reviewer DRB in order to resolve any discrepancies in their scores and come to an agreement on the final score of each company.

Lastly, an appointed independent party will validate the companies’ corporate governance practices through a face-to-face interview with the board of directors and other key officials of the companies being evaluated alongside the board of directors and officers of the companies.

Recognizing excellence in corporate governance among Philippine corporations based on the ACGS, the ICD holds the annual ACGS Golden Arrow Awards, the latest of which was held last Jan. 20 at the Sheraton Manila Hotel.

According to the ICD, the Golden Arrow is awarded to PLCs that achieved a score of at least 80 points in the ACGS Assessment. At this point, the company has exhibited observable conformance with the Philippine Code of Corporate Governance and internationally recommended corporate governance practices as espoused by the ACGS.

There are five performance levels in corporate governance, depending on how companies score. Companies that received 80-89 points in the ACGS Assessment are awarded a 1-arrow recognition, those with 90-99 points a 2-arrow recognition, those scoring 100-109 points a 3-arrow recognition, those having garnered 110-119 points a 4-arrow recognition, and those with a score of 120-130 points a 5-arrow recognition.

More than 80 companies received golden arrows this year, which serves as a symbol of the increasing competitiveness of the Philippines. — A. K. S. Brillantes

Furthering modernization in Bureau of Customs

Photo from facebook.com/BureauOfCustomsPH

In a globalized world, the importance of trade and commerce is paramount. One of the biggest economic advantages the Philippines has over its neighbors is its strategic location in the Asia-Pacific, serving as a gateway between Southeast Asia, East Asia, and Oceania.

This is why the role of the Bureau of Customs (BoC) is integral to the country’s continued growth. Especially so as the Philippines redoubles its efforts to attract more foreign investments and boost its exports once the Regional Comprehensive Economic Partnership (RCEP) trade deal takes effect as early as May this year.

The Regional Comprehensive Economic Partnership (RCEP) is a free-trade agreement (FTA) between the ten member-states of the Association of Southeast Asian Nations (ASEAN) (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam) and its five FTA partners (Australia, China, Japan, New Zealand and Republic of Korea).

“With the country’s participation in RCEP, the Philippines has now further strengthened its position as an ideal investment hub in the region as we expand market access, facilitate trade, and align our rules and procedures with participating economies,” National Economic and Development Authority Secretary Arsenio M. Balisacan said in a statement.

Trade Secretary Alfredo E. Pascual told the media that he expects Philippine-based companies to be ready to avail of the export opportunities brought by RCEP.

“But more than that, investors that are eyeing the Philippines as a production hub will now be really implementing their intentions and their plans to set up manufacturing hubs in the Philippines and making their investments in our country,” Mr. Pascual said.

In its vision to become a modernized and credible Customs administration that is among the world’s best, the BoC must step up to the task of facilitating this development, as well as maintain and bolster its border control, and improve the collection of lawful revenues from the resulting commerce.

In lieu of the RCEP, the BoC has raised its revenue collection target for 2023 to P901.3 billion, in anticipation of a depreciating Philippine peso against the US dollar for the year.

“Based on the emerging target approved by the Development Budget Coordination Committee (DBCC), the Customs bureau is expected to generate P901.3 billion in revenue next year,” according to the BoC Financial Service.

“The emerging collection target is (18%) higher by P135.8 billion compared to the 2023 Budget of Expenditure and Sources of Financing (BESF) program level of P765.6 billion due to higher exchange rate assumptions despite lower projected Dubai crude oil price and slower import growth compared with 2022,” the BoC Financial Service added.

The peso-dollar exchange rate forecast was raised by the DBCC earlier from P51-P55 to P55-P59 for 2023. Economic managers noted the peso “continues to depreciate due to heightened global uncertainties and aggressive monetary policy tightening of the US Federal Reserve.”

The most recent projections made by the DBCC predict that the price of Dubai crude oil will decrease to $80-$100 per barrel in 2023 from $98-$100 this year.

The DBCC also reduced the imports growth target from 6% to 4% in 2023. Compared to this year’s target of 20% growth, this is substantially slower.

Despite this, Customs is expected to collect P570.3 billion in value-added tax (VAT) from imports this year, P207.4 billion in excise taxes, P105.1 billion in import duties, and P18.5 billion in other fees.

The BoC’s collection target for 2023 is 24.9% higher than this year’s P721.5-billion target, which has already been exceeded.

Photo from facebook.com/BureauOfCustomsPH

President Ferdinand R. Marcos, Jr. lauded the accomplishments of the BoC in 2022, saying that the more than P862-billion revenue it collected last year, 34% higher than the P643 billion it collected in 2021, was “commendable.”

This is the Customs bureau’s highest revenue collection in history, which the President noted went a long way towards funding local governments to generate more employment opportunities, build more infrastructure, and provide better welfare support for the people.

Aside from the improved collection performance, the President highlighted the Bureau’s gains in protecting the country’s borders.

“In 2022, the Bureau of Customs’ Anti-Smuggling Campaign has recorded 729 apprehensions with a total estimated value of more than P24 billion, which I hope you will further sustain and toughen in the years ahead,” he said.

“I am thus very pleased as we recognize these and all the other achievements of the Bureau of Customs,” he added.

Until the end of his term as Customs Commissioner, Yogi Filemon L. Ruiz had pushed the BoC digitalization program forward in accordance with the President’s socioeconomic plan in order to deliver transparent and effective services while reducing corruption and boosting legal revenue collection.

The new BoC Commissioner Bienvenido Y. Rubio pledged to build on this initiative and said that digitizing the bureau’s process will be his main priority, with the aim of making governance more data-driven.

“I aspire to foster a healthier trade environment, which will contribute to the expansion and economic recovery, by equipping the Bureau of Customs with better and modernized mechanisms for trade facilitation, and a more improved collection efficiency, through the introduction of these sustainable reforms,” Commissioner Bienvenido Y. Rubio said at his turnover ceremony earlier this month.

The push for digitalization was backed by Finance Secretary Benjamin E. Diokno, who called on the BoC to set the effort as a key priority to achieve modern governance.

“Digital customs administration allows the government to focus its resources on identifying higher-risk entities, while enhancing the ease of doing business,” he said in a speech.

In order to implement significant institutional reforms “that will shape the Bureau’s immediate and future plans,” Mr. Rubio made clear his intention to bring data-driven decision-making to every level of the organization.

“I am confident that Commissioner Rubio will take on this mission with utmost commitment, integrity, and excellence,” Mr. Diokno said.

“A digital customs administration allows the government to focus its resources in the identification of higher risk entities, while enhancing the ease of doing business,” he added.

The Finance chief also expects Mr. Rubio will bring in a fresh vision to the Customs bureau.

“As we enter 2023, I trust that Commissioner Rubio will bring in a fresh vision and even loftier targets to move the Bureau closer to the goal of becoming a modern and world-class Customs agency that ranks among the best in the world,” he said. — Bjorn Biel M. Beltran

Net ‘hot money’ inflows surge in Jan.

REUTERS
More “hot money” entered the Philippines in January, central bank data showed. — REUTERS

By Keisha B. Ta-asan, Reporter

MORE FOREIGN CAPITAL entered than left the Philippines in January to yield a net inflow for a third straight month in January, data from the Bangko Sentral ng Pilipinas (BSP) on Thursday showed.   

Transactions on foreign portfolio investments registered with the central bank through authorized agent banks posted a net inflow of $292.12 million in January, more than triple the $92.95 million in December 2022.

The January tally was also about 20 times larger than the $14.6-million net inflow in the same month last year, the BSP said.   

Foreign portfolio investments are commonly referred to as “hot money” due to the ease by which these flows enter or leave the country.

According to BSP data, January saw $1.004 billion in gross inflows, a 7.9% drop from $1.09 billion in December. Year on year, gross inflows rose by 37.3% from the $731.42 million seen in January 2022. 

The bulk of investments (62.8%) went into Philippine Stock Exchange (PSE)-listed securities, mainly banks and holding firms, as well as companies involved in property, food, beverage, tobacco, electricity, energy, power and water.   

Around 37.2% of the foreign inflows were invested in peso government securities and other instruments.

Investments during the month mostly came from the United Kingdom, the United States, Singapore, Luxembourg, and Hong Kong, which accounted for 83.8% of the total foreign inflows.

On the other hand, BSP data showed $711.79 million in gross outflows in January, declining by 28.8% from the $999.12 million in December. The January outflows slipped by 0.7% from the $716.82 million last year. 

The central bank said the United States got 69.4% of total outward remittances.

China Banking Corp. Chief Economist Domini S. Velasquez said net portfolio inflows rose significantly at the start of the year “due to improved investor sentiment towards emerging markets.”

“Better economic figures in advanced economies (fourth-quarter growth figures in particular), U-turn of China from its zero-COVID (coronavirus disease) policy, and expectations of being almost at the end of the Fed’s monetary tightening cycle, led to positive market sentiments,” she said in a Viber message.

Ms. Velasquez noted the bellwether Philippine Stock Exchange index (PSEi) breached the 7,000 level in January, even entering bull territory for several days.

“Global risk sentiment received a good start to the year as investors focused on the possibility that the Fed would be scaling back the pace of its tightening cycle. This in turn would help bolster growth prospects globally,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail.   

At its Jan. 31 to Feb. 1 meeting, the US Federal Reserve raised borrowing costs by 25 basis points (bps) to 4.5-4.75%, a slower pace of rate increase versus its 50-bp hike in December 2022.

“Sentiment was turned since but back in January, the focus was on a possible dovish Fed,” Mr. Mapa added.   

Year to date, including the first week of February, hot money yielded a net inflow of $316 million, surging by 276% from the $83.88-million net inflow in the same period last year. 

“Moving forward, we expect portfolio flows to moderate in the short term as the PSE consolidates and with lower borrowings from the National Government,” Ms. Velasquez said.

“Expectations of longer and higher interest rate hikes in the US could also prompt a risk-off attitude towards emerging markets, like the Philippines,” she added.   

Market players are expecting the US Federal Reserve to stay on its aggressive rate hike path, following the release of minutes from its last policy meeting that strengthened the central bank’s hawkish stance.   

The BSP expects hot money to post a $5-billion net inflow this year, higher than the $886.7-million net inflows in 2022.

NEDA eyes 3,700 projects worth P15T

National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan — PHILIPPINE STAR/KRIZ JOHN ROSALES

By Luisa Maria Jacinta C. Jocson, Reporter

THE NATIONAL Economic and Development Authority (NEDA) is finalizing a list of 3,700 priority infrastructure projects worth P15 trillion that will be submitted to President Ferdinand R. Marcos, Jr. for approval.

“This week, the NEDA Board is meeting to finalize the list we recommend to the President. That list is a big number of projects, tentatively, 3,700 projects worth P15 trillion,” NEDA Secretary Arsenio M. Balisacan told reporters on Thursday.

The list will be presented to Mr. Marcos on March 9 for his approval.

Mr. Balisacan said these infrastructure projects will be developed over the medium term, and may spill over to the next administration.

“We’ll come up with a shorter list for the flagship program. These have to be very consistent and relevant to the Philippine Development Plan (PDP), those are the ones that will address the constraints to growth and employment generation as identified in the PDP,” he said.

The NEDA Secretary said not all of these projects will be implemented right away, adding it will depend on the Philippines’ fiscal position and the private sector’s interest.

Out of the 3,700 proposed projects, 98 will be public-private partnership (PPP) projects worth P3.044 trillion. This consists of 73 national projects worth P2.914 trillion and 25 local projects worth P130 billion.

Projects that are underdoing studies, as well as those with no finalized costs, are not included on the NEDA’s list.

Nearly half or 45 of the PPP projects are related to transport, while 14 are road projects, and 11 involve property development. Other PPP projects include water and sanitation (8), health (6), information and communications technology (5), tourism (3), solid waste management (3), and energy (3).

As of December, the government has awarded 210 projects with a total estimated cost of P2.335 trillion.

Mr. Balisacan said there is a need for “massive infusion of capital” from the private sector to fund these infrastructure projects.

“Tapping private capital is the way to go partly because the government has no money. We have limited resources and a lot of policy responses to the pandemic have raised the level of debt. While some say that we have space, personally, I don’t think so. We’re a country with not a good history of sustained economic development,” he added.

The government is planning to spend 5-6% of gross domestic product (GDP) annually on infrastructure.

As of end-2022, the National Government’s outstanding debt stood at P13.42 trillion, representing 60.9% of GDP.

BENEFITS OF RCEP
Meanwhile, Mr. Balisacan said the Philippines will benefit from the Regional Comprehensive Economic Partnership (RCEP) trade deal if it can address existing gaps that hinder foreign investments.

“The answer is clear: we will gain. How much we gain depends on what else we will do to improve the investment climate in the country. We have to do much more than ratifying a trade agreement. This RCEP is an additional lever but not sufficient to create those quality jobs, we have to complement that to those things we identified in the PDP,” he said.

Mr. Balisacan said the government has to address infrastructure backlogs, regulatory bottlenecks, ease of doing businesses, learning poverty, and quality of education, among others.

“The benefits from RCEP are not short term, they’re quite long term, yet we cannot afford to be left out. Because the truth is, if we don’t shape up, investors are not only looking at the Philippines, they’re looking at other countries out there,” he said.

The Senate on Tuesday approved the Philippines’ membership in RCEP, which is described as the world’s largest trade deal.

Mr. Balisacan said the RCEP will put more pressure on the government to accelerate the development of the agriculture sector.

“With or without RCEP, those problems are there. Now that you have opened up another window for growth, to maximize the benefits from this opportunity, you have to speed up the development of the sector,” he said.

Agricultural stakeholders have warned that the sector will suffer once the Philippines joins RCEP, due to the lack of safety nets and government support.

BoI hikes investment target to P1.5 trillion

PHILIPPINE STAR/MICHAEL VARCAS
The Board of Investments expects to register P1.5 trillion worth of investments this year. — PHILIPPINE STAR/MICHAEL VARCAS

THE BOARD of Investments (BoI) is confident the Philippines can attract more investments, as it raised its target by 50% to P1.5 trillion this year.

“Given the strong investment approvals for January, as well as the robust pipeline of investment leads — including those generated through presidential visits, I have increased the 2023 investment registration target of the BoI from P1 trillion to P1.5 trillion,” BoI Chairman and Trade Secretary Alfredo E. Pascual said in a statement on Thursday. 

The BoI, an investment promotion agency under the Department of Trade and Industry (DTI), has already recorded P414 billion worth of registered investments as of Feb. 9. This is more than double the P170.5 billion worth of investments approved in the same period last year.

The latest February figure was already half of the BoI’s original P1-trillion target, and nearly 60% of the P729 billion worth of investments approved in 2022.

“I thank BoI for enthusiastically welcoming this challenge, and of course the President as a hub for sustainability and innovation-driven manufacturing and services in the region,” Mr. Pascual said.

President Ferdinand R. Marcos, Jr.’s presidential trips to several countries including Japan, China, and the United States may have also helped drive investments higher.

“The previous presidential visits have been contributing significantly to our robust list of investment leads, including companies that did not participate directly in activities held during the visit but are also strongly encouraged by the positive projection of the Philippines as influenced by the visits,” Mr. Pascual said.

On Feb. 19, Mr. Pascual said the DTI has P344 billion worth of potential investment leads that have yet to be processed following the recent presidential trips.

The DTI chief said they are working to ensure the investment leads will materialize into actual investments in areas such “renewable energy (RE), data centers, electric vehicle (EV) assembly and infrastructure, export-oriented manufacturing, and telecommunications, among others.”

In a Viber message to reporters, Trade Undersecretary Carol P. Sanchez said the Senate’s approval of the Regional Comprehensive Economic Partnership (RCEP) trade deal will likely boost investments in the Philippines.

“Secretary Pascual is confident that RCEP can contribute to pushing investors to decide on setting up in the Philippines,” she said. 

Ms. Sanchez said the BoI’s current investment leads are from sectors such as information technology and business process management (IT-BPM), renewable energy, manufacturing, data centers, green metals, telco towers, sea cable infrastructure, EVs, and light manufacturing.

Senators on Tuesday voted to concur with the RCEP’s ratification, paving the way for the Philippines to finally join the world’s largest trade deal.

Aside from the Philippines, the RCEP participating countries include the Association of Southeast Asian Nations (ASEAN) member countries, Australia, China, Japan, South Korea, and New Zealand.  It took effect on Jan. 1, 2022 for most of the participating countries.

INVESTMENT PROMOTION
Meanwhile, the BoI said in a separate statement that it signed a memorandum of understanding (MOU) with Hongkong and Shanghai Banking Corp. (HSBC) Philippines to explore potential collaboration and investment opportunities.

“The MOU between BoI and HSBC Philippines will serve as an instrument to facilitate collaboration in terms of investment promotion. We are very grateful for this partnership because it will also enable the conduct of investment seminars and business matching activities that will be helpful to our local businesses,” Mr. Pascual said.

The MOU was signed by Mr. Pascual and HSBC Philippines President and Chief Executive Officer Sandeep Uppal on Feb. 21.

“It has always been HSBC Philippines’ commitment to support the country’s agenda on nation building and economic progress. We are indeed delighted to be in partnership with the DTI and through HSBC’s international network, we hope to bridge the Philippines to growth opportunities across the globe and vice versa,” Mr. Uppal said. — Revin Mikhael D. Ochave

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