Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 4798

Digital services tax measure to target large foreign companies

REUTERS

THE planned tax measure for digital service providers will target mainly large foreign companies, a senior legislator said, calling it a means of leveling the playing field for domestic media companies.

“The biggest competitor of traditional media now is YouTube, Facebook and TikTok but the country doesn’t get a single centavo. DZWB, DZRH, you (media companies) pay the government income tax and VAT (value-added tax) so that’s not fair and yet these companies take away market from our (legacy) companies,” Senator Sherwin T. Gatchalian, who chairs the Senate’s ways and means committee, said at the Pandesal Forum on Sunday.

“So, just to put things on equal footing, the government plans to tax digital services, but (only) the big ones. We’re not talking about the small ones… we’re not going to do anything (to the smaller companies), it’s only the big foreign companies,” he added.

Her called the current system “unfair” as domestic retailers are required to pay 25% in income tax and 12% VAT “but digital services, because they are new, don’t pay anything.”

President Ferdinand R. Marcos, Jr. signaled the administration’s intent to impose VAT on digital service providers in his first State of the Nation Address, estimating proceeds of around P11.7 billion from such a tax if implemented in 2023.

Mr. Gatchalian said that this was one of the many options to increase government revenue, citing as well enhanced tax administration for micro, small and medium enterprises (MSMEs).

“We’re keeping it simple,” he said. “We expect more MSMEs to pay their taxes on time.”

He said the debt-to-GDP ratio, which according to data from the Bureau of the Treasury (BTr) jumped to 63.7% in the third quarter, can be brought down to 40-50% in the next five years with more foreign investment.

Former Speaker of the Indonesian Regional Representative Council Irman Gusman, speaking at the forum, discussed possible cooperation with the Philippines on coal, geothermal energy, tourism, and agriculture.

He said more can be done to develop trade between the Philippines and Indonesia.

Mr. Gatchalian noted that inflation, which surged to near 14 year-high in October to 7.7% from 6.9% in September and 4% in October 2021, was mainly driven by power and food prices.

To address this, the Philippines can discuss partnerships with Indonesia that will provide access to discounted coal, reliable supply, he said, noting that this will lower the cost of electricity.

Since both the Philippines and Indonesia are big food producers, he added that trade can also be maximized to offset rising food prices.

“It really happens because food is susceptible to climate and if we have typhoons, we can see prices of food go up and we recently experienced a few typhoons,” he said. “We can tap our Indonesian partners for cheap produce, cheap food supply so we can bring down inflation.”

Mr. Gatchalian also noted potential for further collaboration with Indonesia on renewable energy, especially in geothermal energy. “The Philippines is quite active in the renewable energy sector. We are pushing very hard to increase our renewable energy use both from solar and wind, and also from hydropower plants.”

“I say this because I see a lot of similarities between the Philippines and Indonesia in terms of energy and both countries would want to use its renewable energy as the main source of energy at one point in the future,” he said. — Alyssa Nicole O. Tan

Solar estimated to have eliminated $78M in PHL fossil fuel spending

BW FILE PHOTO

SOLAR POWER helped do away with an estimated $78 million in Philippine spending on fossil fuels in the first half of 2022, with the potential to realize more in savings, three think tanks said in a report.

According to a report issued by Ember, the Centre for Research on Energy and Clean Air (CREA) and the Institute for Energy Economics and Financial Analysis, the Philippines, China, India, Japan, South Korea, Vietnam, and Thailand saved a combined $34 billion in fossil fuel spending in the first six months of the year.  

“The potential savings from existing solar alone are enormous, and expediting their deployment alongside other clean energy sources such as wind, will be crucial for energy security in the region. While ambitious targets are important, follow through will be the key thing to watch moving forward,” CREA’s Southeast Asia Analyst Isabella Suarez said in a report.

Solar accounted for only 2% of the power generated in the Philippines in the first six months, according to the report, but solar generation is also expected to grow at 22% each year until 2030 in China, India, the Philippines, Japan and Indonesia. — Ashley Erika O. Jose

Aboitiz Power Davao battery storage facility operational this month

ABOITIZ Power Corp. said a 49-megawatt (MW) hybrid battery energy storage system (BESS) facility in Maco, Davao de Oro, will start operations this month.

The facility will support the Mindanao grid, especially during the dry season. The grid, which is largely dependent on hydro power, can tap stored power when hydroelectric capacity falls, an unidentified company spokesman said via e-mail on Saturday.

Another BESS project, a 24-MW facility in the Magat complex in Ramon, Isabela, operated by SN Aboitiz Power Group, is expected to start commercial operations by the first quarter of 2024, the company said.

Aboitiz Power said the Magat BESS facility will also be tapped for grid support.

Power grids tap reserve power, engaged via so-called ancillary services contracts, when baseload power declines.

“They are expected to play an important part in helping balance the Philippine energy grid’s reliability and support lower-carbon energy systems,” Aboitiz Power said. — Ashley Erika O. Jose

PHL considered priority market by Spanish companies  

THE Philippines is considered a priority market for Spanish companies, according to a Spanish state agency helping that country’s companies enter overseas markets.  

Maria Peña, ICEX chief executive officer, said on the sidelines of the Philippines-Spain multilateral partnership event in Makati City last week that “the Philippines is one of the priorities for Spanish companies… We are all from big companies, very specialized companies who are coming here to look for business opportunities.”

“The Philippines is a very interesting market for us. The reality is we are here trying to reinforce our links with the Philippine economy,” she added.  

ICEX is an arm of Spain’s Ministry of Industry, Trade, and Tourism.

Some of the Spanish companies participating in the event include Acciona Agua, Acciona Construccion SA, Almar Water Servicios España SL, Alsina Formwork Southeast Asia Corp., Arquimea Group SA, Ignis Desarrollo SL, Metropolitano De Tenerife SA, Seta Ph Technology SL, and Tedagua Philippines, Inc.

Ms. Peña said Spanish companies are focusing on sectors where they have competitive advantage and are seeking to establish long-term relationships with local partners.

“If we are talking about transport, water, clean energy, agro-industry, and tourism, we are the perfect partner. The Philippines’ priorities are our priorities,” Ms. Peña said.

Ms. Peña said that a bilateral free trade agreement (FTA) between the Philippines and Spain can happen only via the European Union (EU).

“The FTA has to be with the EU since we are a member. I think the (FTA) will be a great opportunity for Europe and for the Philippines,” she said.

“Free trade is the best way to spread wealth, to create wealth, and to have better opportunities for all of us to create good employment and to reinforce the economic base of both parts. It will be very interesting for all of us,” she added. — Revin Mikhael D. Ochave

What’s new with Philippine investment incentives

2022 has ushered in several changes to the Philippines: a new administration, the winding down of the COVID-19 pandemic, and updates to the country’s investment incentive strategy.

Investment incentives are government concessions meant to attract inbound capital. Taking advantage of these incentives is integral to strategic business optimization. From the relaxing of foreign equity restrictions, to the 2022 Strategic Investment Priority Plan, to environmental laws and more, entrepreneurs should be aware of every opportunity to decrease the cost of doing business in the Philippines.

ENCOURAGING FOREIGN EQUITY
Foreigners have been gradually given more freedom to invest. They may enter industries previously exclusive to Filipino citizens, subject to reciprocal treatment. Instead of dreading competition, organizations should use this opportunity to seek more funding for their operations. 

Amendments to the Public Service Act limited the activities that are considered public utilities, namely the distribution of electricity, transmission of electricity, petroleum and petroleum products pipeline transmission systems, water pipeline distribution systems and wastewater pipeline systems, including sewerage pipeline systems, seaports, and public utility vehicles. This effectively removes from the “public utility” classification the domestic shipping, railways and subways, airlines, expressways, tollways, and transport network vehicles services, among others. These can now be fully owned by foreigners.

Telecommunications and other vital services are subject to safeguards for critical structure and the reciprocity rule. On the other hand, the amended Retail Liberalization Act grants foreign enterprises the right to invest in retail trade businesses with a minimum paid-up capital of P25 million. If it owns more than one physical store, the investment per store should be at least P10 million. 

If successful, these equity market liberalizations could lead to increased foreign direct investment (FDI). A higher FDI means an improved exchange rate for the peso. Furthermore, investment incentives can also be used to boost job creation as well as job quality. The latter is crucial amid rising underemployment rates.

For example, the amended Foreign Investments Act of 1991 lets foreigners invest in micro and small Domestic Market Enterprises (DMEs) with a minimum paid-up capital of $100,000.00. The DMEs should either involve advanced technology; or be endorsed as startup enablers; or directly employ at least 15 Filipinos, with a majority of its employees being Filipino citizens. This has been amended from the previous requirement of at least 50 direct Filipino employees. 

AN OVERVIEW OF THE 2022 SIPP
To effectively implement the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law, Memorandum Order No. 61 was issued to approve the 2022 Strategic Investment Priority Plan (SIPP). It grants investment incentives to entities registered as Registered Business Enterprises (RBEs). RBEs are categorized as either Export Enterprises (EEs) if 70% of their output is directly or indirectly exported, or as DMEs if the situation is otherwise.

The regulatory power of investment incentives can be observed in the following aspects of the SIPP and the CREATE Law:

Export Enterprise vs. Domestic Market Enterprise. To address the trade deficit, EEs get additional benefits over DMEs. EEs get VAT incentives and have the option to avail of either a 5% tax on their gross income earned, in lieu of all national and local taxes, or Enhanced Deductions (ED) for 10 years following the end of the income tax holiday (ITH) period. Meanwhile, DMEs have no VAT incentives, and can only avail of the ED for five years after the lapse of the ITH period.

Provincial benefits. The period to enjoy the benefits of the 2022 SIPP depends on both the kind of RBE (whether DME or EE), as well as the location of the registered project or activity. Following the push towards rural development as embodied in the Balik Probinsya program, the CREATE Law gives longer ITH periods to RBEs operating outside of the National Capital Region and other metropolitan areas.

Priority activities in the tier system. The administration aims to create a self-sufficient Philippines. Thus, longer benefits are granted to industries such as agriculture to promote food security, healthcare to better withstand future pandemics, power to reduce reliance on imported fuel, and higher tier activities.  

PUSHING FOR A GREEN ECONOMY
The right of Filipinos to a balanced and healthful ecology goes hand-in-hand with the need for economic development. Hence, the current administration’s socioeconomic agenda includes the pursuit of a green economy. It is willing to compensate sustainable, eco-friendly businesses through investment incentives under the Renewable Energy (RE) Law, as implemented by Revenue Regulations (RR) No. 07-2022.

Under the RE Law, RE developers may avail of a seven-year ITH. Afterward, the developer is to pay 10% corporate tax on taxable income, provided that the resulting savings are passed on to end-users in the form of lower power rates. They may also avail of the incentives under the CREATE Law, e.g., four to seven years of ITH, depending on location and industry tier, followed by five years of Enhanced Deductions. The main consideration in determining which incentive to apply for is the time-bound incentives under CREATE Law which is not applicable under the RE Law.

In addition, the Philippine Green Jobs Act of 2016 promotes the creation of “green jobs,” or employment which contributes to environmental preservation. Under RR No. 05-2019, businesses offering green jobs will be granted an additional deduction equal to 50% of the total expenses for skills training and research development. The law also provides that capital equipment that are actually, directly and exclusively used in the promotion of green jobs, may be imported free of taxes, though the government has not yet issued any implementing rules for this provision.

BALANCING INCENTIVES WITH SUSTAINABLE GROWTH
Investment incentives have been introduced by the government in a conscious effort to remain globally competitive. Granting incentives must nonetheless be balanced with sustainable growth.

Every concession comes with an equivalent benefit to ordinary Filipinos, either through employment opportunities or through eco-friendly communities. Companies have just as much to gain from investment incentives as their foreign counterparts and taking advantage of tax and regulatory benefits is integral to any business strategy.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the authors and do not necessarily represent the views of SGV & Co.

 

Cheryl Edeline C. Ong is a tax partner and Karen Mae L. Calam-Ibañez is a tax senior manager of SGV & Co.

UN told to pressure Philippines on media deaths

PHILIPPINE STAR/ ERNIE PENAREDONDO

By John Victor D. Ordoñez, Reporter

THE UNITED Nations (UN) Human Rights Council should put pressure on the Philippines to do something about recent journalist killings in the country, especially after its prison chief was implicated in one case, political analysts said at the weekend.

“These rampant killings of media practitioners tell the international community about the bleak human rights situation in the country, contrary to the pronouncements of the government,” Arjan P. Aguirre, who teaches political science at the Ateneo de Manila University, said in a Facebook Messenger chat.

He added that the UN should also seek updates on the government’s efforts to probe wrongful deaths in ex-President Rodrigo R. Duterte’s anti-illegal drug campaign.

Last week, Philippine police filed a complaint against suspended Bureau of Corrections Director General Gerald Q. Bantag for allegedly ordering the murder of radio broadcaster Percival C. Mabasa.

Mr. Bantag had denied involvement, saying he had nothing to gain from it.

The broadcaster’s YouTube channel, which had more than 200,000 subscribers, showed that he had been critical of Mr. Duterte and some officials.

The Justice chief left for Geneva last Friday to lead a team that will participate in the UN’s periodic review of the country’s human rights situation.

He said they would talk about government reforms for the justice system, including law enforcement and human rights, with UN member states on Nov. 14-16.

The Justice chief told the Human Rights Council last month the government plans to change the culture of the justice system, which he said was prone to delays.

The Philippines remained the seventh worst country in the world where journalists killers get away with murder, New York-based watchdog Committee to Protect Journalists (CPJ) said in a report on Nov. 2.

The Department of Justice (DoJ) has said the Marcos administration would continue its probe of journalist murders and harassment.

“This will not stop the new administration from bolstering and strengthening our mechanisms,” DoJ spokesman Jose Dominic F. Clavano IV said in a Viber message on Nov. 3. “In fact, it will motivate us to investigate and prosecute with more vigor.“

In a joint statement on Oct. 18, the embassies of the Netherlands, Canada and France said journalist killings “curtail the ability of journalists to report the news freely and safely.”

Marlon M. Villarin, who teaches political science at the University of Santo Tomas, said the preliminary probe of Mr. Mabasa’s murder would test President Ferdinand R. Marcos, Jr.’s human rights stance.

“UN member states assessing the country’s rights situation is significant because this gives the government the right platform to show the world that it is capable of respecting the Universal Declaration of Human Rights and holding officials accountable for human rights abuses,” he said in a Viber message.

The Human Rights Council dealt victims of human rights violations in the Philippines a serious blow by failing to pass a resolution last month to ensure continued scrutiny of the country’s rights situation, Human Rights Watch earlier said.

In September, the global watchdog said rights abuses in connection with the Philippines’ deadly drug war continue under the Marcos administration.

Continued UN scrutiny of the Philippines is important because drug war killings are still common and police impunity for rights violations remained the norm, it added.

The Office of the High Commissioner for Human Rights earlier said the government’s probe of human rights violations in connection with its anti-illegal drug campaign lacked transparency.

“The real challenge here is not only making international actors more forceful in scrutinizing the Philippine government, but also in using this visit as an opportunity for domestic actors to make the government and the public more willing to acknowledge and address the situation,” Hansley A. Juliano, a political economy researcher studying at Nagoya University’s Graduate School of International Development in Japan, said in a Messenger chat.

Philippine Solicitor General Menardo I. Guevarra in September said the country would block an investigation by the International Criminal Court of the war on drugs and ensure suspects are tried by local courts.

At least 6,117 suspected drug dealers had been killed in police operations, according to data released by the Philippine government in June last year. Human rights groups estimate that as many as 30,000 suspects died.

“The UN Rights Council can only rely on international acceptance of norms so much,” Mr. Juliano said. “If countries know they can persist in their anti-democratic course without massive impact on their economies and authority, these inquiries and international shaming will not matter much.“

Marcos hails ties between US and ASEAN at summit

PHILIPPINE President Ferdinand R. Marcos, Jr. has called for the continuation of maritime security partnerships between the United States and Southeast Asian nations, saying Washington could deter transnational crimes, according to the presidential palace.

He also recognized the role of a quadrilateral alliance among the US, Australia, India, and Japan in maintaining regional security.

“Let us continue our cooperation in fighting against illegal, unregulated and unreported fishing and also in combating marine plastic debris and marine pollution,” Mr. Marcos said at the 10th ASEAN-US Summit in Phnom Penh, Cambodia, based on a state from Malacañang.

“Marcos said ASEAN welcomes the US’ active advocacy and concrete projects in support of efforts to combat transnational crimes, terrorism and trafficking of persons,” it added.

Mr. Marcos sought the continuation of capacity-building programs for ASEAN’s law enforcement agencies.

He also cited the Quad’s “unwavering support” for ASEAN unity and centrality, saying it should “complement the ASEAN-centered regional security architecture.”

At the ASEAN-US summit, leaders adopted a statement declaring the establishment of the comprehensive strategic partnership to “open new areas of cooperation vital to the future prosperity and security of our combined one billion people, and task our officials to follow up on its implementation.”

Mr. Marcos said the partnership would “serve as an additional anchor to our regional architecture and to the current international order that is presently volatile and constantly in flux”.

China, an important Philippine trade partner, has viewed the Quad as a US attempt to counter its influence in the region. Wang Yi, China’s foreign minister, has called the US-led informal grouping an “Indo-Pacific NATO.”

The Philippine leader has accepted Chinese President Xi Jinping’s invitation to visit China in January. — Kyle Aristophere T. Atienza

Opposition told to learn from US midterm results

PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINE opposition should temper right-wing populism that enabled Rodrigo R. Duterte’s rise to power by promising voters enough social protection amid economic challenges, political analysts said on Sunday, as US Democrats retained control of the Senate in this year’s midterm elections.

The preparations of opposition forces for the 2025 Philippine midterm elections should be “tied to a more general appeal to a dignified life, something that is irreducible to economic security, and involves political empowerment and sociocultural well-being,” Anthony Lawrence A. Borja, who teaches politics at the De La Salle University, said in a Facebook Messenger chat.

“It is a matter of making people less reliant on leaders for the realization of their basic needs and collective aspirations.”

US Democrats, who offered an alternative to the politics of far-right leader Donald John Trump, will hold onto control of the Senate after winning a pivotal race in the state of Nevada, according to BBC News.

Republicans will take control of the House of Representatives but by a very small margin — something that was unexpected as observers had predicted that economic challenges would hurt the chances of US President Joseph R. Biden’s bets.

“This electoral outcome appears to be an exception to the conventional understanding nowadays about the ‘economic vote’ — a theory of voting behavior that tells us of people tending to not support the incumbent during an economic crisis,” Arjan P. Aguirre, a political science professor at the Ateneo de Manila University, said in a Messenger chat.

The results of US elections showed that American voters have denied the Trump-led Make America Great Again movement of electoral gains “needed for a Trump comeback in the 2024 presidential elections.”

Many gubernatorial candidates backed by Mr. Trump or who were considered by many  as his favorites lost, according to media reports.

In the Philippines, opposition bets offering alternative politics could “win the hearts and minds of the people by providing a workable and thriving alternative political agenda and program,” said Mr. Aguirre.

US voters named inflation as one of their most important concerns but Republicans “did not offer clear measures” to combat it, according to Jonathan Freedland, a columnist at The Guardian. Mr. Trump’s narcissism did not help, he said.

Analysts said Philippine opposition forces, which were sidelined by Mr. Duterte’s attacks on democratic institutions and push for strongman politics, should start offering alternative programs and go beyond the Marcoses. Mr. Duterte left office with high approval ratings.

Opposition groups should be “sincere in identifying a new agenda for the country, coming up with a new narrative that they can mainstream, and formulating a new strategy to engage voters,” Mr. Aguirre said.

“This should be coupled with an innovative approach in engaging the larger populace, especially the D and E classes using their language, touching on their aspirations, knowing their disposition.”

Hansley A. Juliano, a political economy researcher, said they “really have to invoke additional identity problems and hot button topics beyond the Marcoses.”

“Wider coalitions are needed. Messaging discipline is needed,” he said in a Messenger chat. “But that can be achieved not by forcing all opposition members to stick to a moderate line. It lies in emphasizing how the opposing party threatens their rights, their protections, their livelihoods.”

Mr. Juliano warned that economic issues confronting the country could not automatically work for the benefit of the opposition since many Filipinos are “identity and economic hostages to their local patrons.”

He noted that the Biden administration had managed to survive Republicans’ rabid criticism of its handling of the economy due in part to sociocultural issues, including the curtailment of popular abortion rights.

“I think the economy/purse problems were balanced by massive identity/cultural debates,” he said. “The consensus now is that the distastefulness of everything Trump related, [the curtailment of] abortion rights, and the emerging Gen Z vote is keeping it from becoming a Republican victory.”

“Personality politics, fake news, disinformation, polarization on issues, the politics of big money and populism also exist in US politics, especially during elections,” said Maria Ela L. Atienza, a political science professor at the University of the Philippines.

“These can be challenged by making issues and party programs relevant to different constituencies and sectors, educating and organizing grassroot movements and highlighting differences in party programs.”

She said having strong political parties with distinct programs are important in educating and mobilizing citizens not only during but before and after elections. “Grassroots and sectoral mobilization of parties matter. Parties should remain relevant and connect with the hopes and fears of constituents.”

Ms. Atienza said democratic institutions should also be strengthened and protected. “Otherwise, they can also be used by those with vested interests.”

“People must protect their rights not only during elections but also throughout the whole political process,” she said. “Citizens should participate actively in deliberations and demand accountability from parties, politicians, incumbents and challengers, even those that they support.”

Damage from Paeng reaches P11.84B; death toll up to 160

THE PALIWAN Bridge, which links the northern and southern sides of Antique province in Western Visayas, is one of the major structures destroyed during the storm Paeng. — PROVINCE OF ANTIQUE

THE COMBINED damage to agriculture and infrastructure due to storm Nalgae  has reached P11.84 billion, according to the government’s latest monitoring report on Sunday, more than a week since the typhoon locally known as Paeng hit the Philippines on Oct. 28.  

Cost of damage to the agriculture sector hit more than P6.4 billion from around P4.3 billion last week as reports from field offices continue to be assessed and validated.   

The total includes destroyed crops, fishery and livestock, and damaged agricultural structures, equipment and machineries.   

Almost 147,000 farmers and fisherfolk have been affected, according to the national disaster management council’s report.   

In public infrastructure, damage was estimated at P5.43 billion. This covers roads and bridges, flood control structures, schools, health and other government facilities, and utility service facilities.   

Residential properties were also affected, with 6,140 houses totally destroyed and 57,058 partially damaged as the typhoon triggered floods and landslides.    

The death toll now stands at 160 with 130 confirmed while 30 are still missing.   

Paeng, the 16th typhoon to enter the country this year, has affected almost 1.4 million families or 5.57 million people.   

All 17 regions of the Philippine are considered to have been affected, according to the disaster management council’s report.    

A state of calamity was declared on Nov. 2 in the four hardest-hit regions by President Ferdinand R. Marcos, Jr.  

These are Calabarzon and Bicol in northern Philippines, Western Visayas in the central part of the country, and the Bangsamoro Autonomous Region in Muslim Mindanao in the south.  

Seven provinces and 529 cities and towns have also declared their respective localized state of calamity, which allows for the release of emergency funds for relief and recovery.   

A price cap on basic goods is also imposed under a state of calamity. — MSJ

Davao City businesses grapple with soaring inflation; Oct. rate at 10.4%

BW FILE PHOTO

BUSINESSES in Davao City, one of the major commercial hubs in southern Philippines, are worried that local inflation will hold back ongoing recovery from the coronavirus pandemic with the October rate at 10.4%, higher than the country’s 7.7% and Davao Region’s 9.8%. 

An official of the Davao City Chamber of Commerce and Industry, Inc.  (DCCCII) said the business sector is grappling with the challenge of keeping sales growth amid soaring prices.   

“Based on my discussions (with the business sector), I think inflation is a big concern in Davao City because the cost is high, they are forced to raise prices, and when they raise prices, fewer people can afford,” John Carlo B. Tria, DCCCII past president and current vice president for trade and commerce, said in an interview with the media last week.   

Davao City’s two-digit Oct. inflation rate was higher by 0.5 percentage points compared to September’s 9.9, and a major acceleration from 2.8% in the Oct. 2021, based on Philippine Statistics Authority data.    

“For example when certain input costs in a restaurant go up, that will be passed on to the consumer, no choice but to raise prices. When prices increase and your customers cannot afford to buy the same, that might mean a lower volume now of sales,” Mr. Tria said in mixed English and Visayan.    

Among the top sources of the upward trend in inflation are food and non-alcoholic beverages at 13.9% and transportation at 18.4%.  

“Early in 2022, a lot of the economists said it (soaring inflation) would just be transitional because people were on revenge spending and demand was up,” Mr. Tria said.   

However, he added, there are other continued contributing factors such as the high cost of logistics and climate-related challenges that decrease harvest.  

“How to lower inflation is going to be the biggest challenge,” he said.   

The 9.8% inflation rate in Davao Region, which is composed of five provinces plus the city, was the highest among the country’s 17 regions.  

ICT SECTOR
Meanwhile, the information and communications technology (ICT) sector remains a bright spot for the city with employment seen to double in the next five years.   

Councilor Bernard E. Al-Ag, chair of the Davao City council committee on trade, commerce, and industry, said last week’s two-day Innovation Summit 2022 was expected to benefit mostly the young working population, which already comprise most of the current 70,000 ICT workers in the city.  

“We are targeting that by 2028 our ICT workers will reach 150,000, that is why the city government is supporting 100% the summit because this has the potential to give more jobs and to bring more businesses to the city,” Mr. Al-Ag said in an interview with the state-owned Philippine Information Agency.   

The event included forums on industry developments, business-to-business meetings, innovator pitches, and trainings for ICT workers.   

Among the participants were Chinese companies such as Huawei, China Telecom, China Comservice, and Fiber Home that are looking to grow their operations in the city and the rest of the country.   

“These companies are already operating in Davao City, in Mindanao and in the Philippines. These are some of the bilateral cooperations that we have between two governments,” Davao City-based Chinese Consul General Li Lin said in an interview.   

Mr. Lin said connectivity is one of the key factors in economic growth, especially for micro, small, medium enterprises (MSMEs).   

“I think the internet coverage is very important to help in terms of accessibility to interact and get information. I think with better internet coverage and mobile service to the community, especially to hard-to-reach areas, I think this will benefit the economic growth and help the MSMEs to develop their businesses,” he said. — Maya M. Padillo

PHL, Indian universities partner on advancing marine research, development 

@INDEMBMANILA

A PHILIPPINE university has partnered with an Indian counterpart to advance marine research and development in the country, according to a statement released by the Indian Embassy on Sunday.  

The memorandum of understanding (MoU) signed between the Indian Maritime University and Batangas State University is part of the two nations’ goal to strengthen maritime cooperation.  

“This MoU will particularly facilitate the skilling of specialized human resources, which is a key objective of both governments and also in line with the effort of both countries to further expand their people-centric partnership,” said Ambassador of India to the Philippines Shambhu S. Kumaran, who witnessed the signing ceremony.  

The two academic institutions will initially focus will be on naval architecture and ocean engineering, Indian Maritime University Vice Chancellor Malini V. Shankar said, noting an eventual expansion to marine engineering, nautical science and management. 

The MoU will also facilitate exchange of best practices, as well as visits by scientists and technologists from both countries.  

Batangas State University President Tirso A. Ronquillo said the partnership will help with the implementation of programs in the field of marine science, marine biodiversity, and port and logistics management. 

It will also boost existing programs and future research in marine technology, he said, adding that biodiversity research is enhanced by joint developmental programs. 

The signing of the MoU “will give further impetus to bilateral relations between India and Philippines in the field of maritime cooperation, and also contribute to the broader progress and development of the Indo-Pacific region,” the embassy said.  

The Indian Maritime University, established in 2008 as a central university, plays a key role in the development of trained human resources for India’s maritime sector.  

The Batangas State University, established in 1903 as a manual training school, has advanced into becoming the Philippines’ National Engineering University in 2022, seeking to develop capable engineers in various segments of marine engineering. — Alyssa Nicole O. Tan 

Brunei renews support to PHL peace efforts

SULTAN Hassanal Bolkiah of Brunei and Philippine President Ferdinand R. Marcos Jr. meet on Nov. 12 at the sidelines of the ASEAN Summit in Cambodia. — OFFICE OF THE PRESS SECRETARY

BRUNEI’S leader has renewed his country’s commitment to work closely with the Philippines on peace efforts, according to President Ferdinand R. Marcos, Jr.’s office.    

“We will continue to support your government’s efforts in ensuring peace and stability through various initiatives in southern Philippines including our participation in the unification and modification assistance,” Sultan Hassanal Bolkiah of Brunei told Mr. Marcos during a bilateral meeting on the sidelines of the 40th and 41st ASEAN Summits in Cambodia, based on a press release from Malacañang.  

Brunei is a member of the International Monitoring Team and the independent decommissioning body overseeing the peace process in the Bangsamoro region in the southern island of Mindanao. 

It is also part of the East ASEAN Growth Area, an economic sub-grouping composed of Mindanao and Palawan in the Philippines, and neighboring areas of Indonesia and Malaysia.    

Meanwhile, Mr. Marcos cited climate change and food insecurity as issues that world leaders need to act on “decisively and immediately,” the Palace said in a separate press release.  

“It has become glaringly clear that there is a dire need to strengthen food security towards self-sufficiency in our region, to increase adaptability and resilience in the face of threats to the global supply chain,” he told leaders in his intervention during the 17th East Asia Summit. — Kyle Aristophere T. Atienza

1...4,7974,7984,799...13,400Page 4,798 of 13,400
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube