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Dining In/Out (05/26/22)

Ember’s Raw Tuna Avocado Tapioca

Boutwood opens Ember

CHEF Josh Boutwood, who is known for his maverick approach to dining, offers a new restaurant concept that smolders with sophistication. Having opened on May 14, Ember is a sly wink to his other concept, Savage, that attracts adventurous diners with the primal feel of having food cooked with preindustrial methods using fire, smoke and ash.  Ambience-wise, Ember’s interiors are meant to evoke the warm feelings of enjoying a relaxing meal. To achieve this, Mr. Boutwood takes off from the industrialist look of Savage and the dark walls of his other concept, The Test Kitchen. Ember is modern chic, with a soft and elegant balance to a masculine menu and cooking method. To add to the relaxing atmosphere, the approachable staff will treat guests like family. The menu does not focus on a specific cuisine, as the chef’s cooking philosophy veers away from limitations and instead focuses on gathering inspiration from multiple cultures. The meals will be prepared using a variety of cooking methods from convection, ovens, stove tops hearth, and a smoker to infuse a smoked essence in the dishes. Ember is located at the Greenbelt Mall in Makati City, with al fresco seating available for patrons.

New World Makati offers machang for Dragonboat Fest

NEW World Makati Hotel’s Chinese dining destination, Jasmine, celebrates the traditional Dragonboat Festival with its signature handcrafted machang or zongzi, a glutinous rice dish with two kinds of fillings wrapped in lotus leaves, and steamed or boiled. This sticky rice delicacy is served and shared among family and friends to honor the annual holiday which occurs on the fifth day of the fifth month of the Chinese calendar. A savory and a sweet version of this dish is offered at Jasmine restaurant. The traditional variety consists of glutinous rice, pork, yellow bean, salted egg, and mushroom, while the other is glutinous rice with red bean filling. Both are wrapped in lotus leaf and boiled. Encased in basketweave packaging with a bamboo handle and gold foil logo stamping, these are best enjoyed with hot tea. Each order is priced at P850 net. A 10% discount applies for Club Epicure members’ orders and bulk orders with at least 50 boxes. A senior citizen discount of 20% and 12% VAT exemption is honored for only one box senior citizen card. The restaurant likewise offers complimentary delivery service for bulk orders of a minimum of 50 boxes within a three-kilometer radius from the hotel. For orders, guests can call 8811-6888 ext. 3679, e-mail fbreservations.manila@newworldhotels.com, call or message on Viber/Whatsapp at 0917-888-4194, or order online by filling out the form: https://bit.ly/JasmineMachang.

Breville Ph releases new Barista Touch machine

BREVILLE Philippines offers with the newest and most innovative addition to their collection of top-tier espresso machines, the Barista Touch. This is an intuitive and smart model that simplifies each step of coffee-making while retaining the premium quality of every cup. Haj Cortez-Flores, F&B Business Unit Manager of Breville Philippines described it as the glammed-up version of their current best-seller, the Barista Express. “It is the perfect model if you want an entry-level espresso machine that can give you the same quality as store-bought drinks, but it does have features that can be taken to another level.” The Barista Touch still covers the top four elements that Breville believes make up top-tier drinks: dose control grinding, precise espresso extraction, ideal temperature, and milk foam texturing. The model, however, comes with an automatic steam wand that lets users easily adjust the milk temperature and texture to suit their taste, as well as a one-touch coffee grinder with customizable grind size and dosage settings. Barista Touch users can easily customize their drink in three easy steps by choosing the right Grind, Brew, and Milk settings, and other aspects of the drink like coffee strength and temperature. They can save up to eight personalized coffee settings so they can easily create their preferred drinks with just a push of a button. The Barista Touch is available in Breville outlets and select brand carriers.

Seattle’s Best Coffee opens first drive-through store

SEATTLE’S Best Coffee launched its first drive-through store at Rosario, Batangas on May 2. The branch offers the range of Seattle’s Best Coffee signature beverages, pastries, and food. Aside from the drive-through service, the branch also features a cozy café for customers who want to dine in instead, as well as a display of Seattle’s Best Coffee pastries to bring home. Seattle’s Best Coffee Rosario is located at Rosario Ibaan Road, Brgy. Namunga, Rosario, Batangas.

Red Ribbon offers new small cakes

RED Ribbon has come up with two new junior-sized cakes — Tiramisu Meltdown and Mango Graham Mousse. Tiramisu Meltdown Junior (P420) is made with layers of soft chocolate chiffon and cream cheese with a hint of coffee, while the Mango Graham Mousse Junior (P440) is made of layers of crushed graham biscuits, mango cream, and creamy icing, topped with mango bits. They are available at Red Ribbon Bakeshop branches, and can also be purchased via the Red Ribbon delivery website, the Red Ribbon app (available for Android and iOS), the delivery hotline #87777, via RIA Messenger, or purchased via the GrabFood and foodpanda apps.

Marks & Spencer celebrates National Biscuit Day

FEELING a big peckish and British? Celebrate the UK’s National Biscuit Day on May 29 with Marks & Spencer’s many cookie varieties. There is the all-time favorite, The Extremely Chocolatey Biscuits which have been a part of M&S for two decades and is best paired with a glass of milk or cup of tea. Speaking of tea, enjoy tea time with Marks & Spencer’s Rich Tea Biscuit, made with barley malt extract. Salted caramel fanatics can also look forward to all-butter cookies with smooth Belgian milk chocolate chunks and caramel fudge pieces, topped with milk chocolate. For added crunch and extra refinement, try the Pistachio & Almond Cookies or the Belgian Chocolate and Hazelnut. Order M&S Food at same-day delivery apps: Grabmart, Metromart, Foodpanda, and Pickaroo. One can also get the cookies within the day when paying through Gcash on the M&S Philippines Viber Community at bit.ly/MSPH-VC.

Dreamworks characters in McDo’s new Happy Meal collection

DREAMWORKS and McDonald’s have collaborated on the new DreamWorks Happy Meal. Familiar characters from Dreamworks movies are now included as mini figurines in the Happy Meals — green-skinned ogre Shrek from the Shrek movie franchise, the easy-going Panda Po and the fearless Tigress from Kung Fu Panda, Alex the Lion from Madagascar, the dragon Toothless from How to Train your Dragon, Troll Princess Poppy and Branch from Trolls; and the big boss Ted from Boss Baby. Each Happy Meal comes with a mini figurine, a card environment, pop up/reveals, and stickers which also function as keychains. The new McDonald’s DreamWorks Happy Meal is available through Dine-In, Take-Out, Drive-Through, or via McDelivery until June 9 only. For more information and updates on this offering, visit McDonald’s Philippines on Facebook, Twitter, or Instagram.

LRWC’s net loss widens on higher operating expenses

LEISURE and Resorts World Corp. (LRWC) reported a first-quarter net loss of P222.39 million attributable to the parent firm, wider than the P125.6-billion loss a year ago, as gross gaming revenues slipped while operating expenses increased.

“Since the start of the year, LRWC has been resuming its operations from the pandemic. More and more sites had been reopened and the company had also launched its newest product, BingoPlus,” it said in a disclosure on Wednesday.

It registered a net loss after tax of P223.07 million in the first quarter from a loss of P110.04 million previously because of higher operating expenses.

Gross gaming revenues decreased by 1.42% to P929.01 million from P942.35 million. Operating expenses rose by 8.8% to P177.27 million from P162.9 million.

“Both the development of the new product and the resumption of the work force resulted in an increase of operating expenses,” the company added.

In the first quarter, direct costs reached P902 million from P766 million in 2021, higher by 17.84%.

LRWC said that the increase was mainly due to payment of the minimum guaranteed share to state-led Philippine Amusement and Gaming Corp. for a newly launched Online Traditional Bingo business. It also cited an increase in manpower due to the reopening of sites from the casino and retail segment.

“Nevertheless, on an overall outlook, the financial position of the company remains to be on solid ground. The company is also positive that as the economy recovers from the pandemic and while the new product gains its market popularity, there will be more player traffic in the company’s online entertainment platform in the coming quarters,” it added.

LRWC has subsidiaries in various gaming and entertainment sectors. It launched the country’s first online bingo platform, BingoPlus, early this year.

At the stock exchange on Wednesday, LRWC shares fell by 5.84% or eight centavos to close at P1.29 each. — Luisa Maria Jacinta C. Jocson

Philippines places 75th in revamped 2021 travel and tourism index

The Philippines slipped two notches to 75th out of 117 economies in the World Economic Forum’s (WEF) Travel & Tourism Development Index (TTDI) 2021. The latest edition of the index was the revised version of the Travel & Tourism Competitiveness Index (TTCI) released biennially by WEF. The TTDI ranked economies on their potential drivers in the travel and tourism sector development. With an overall TTDI score of 3.73 (out of 7), the Philippines lagged compared with its peers in the East and Southeast Asia region, just ahead of Cambodia (79th overall), Mongolia (84th), and Laos (93rd).

Philippines places 75th in revamped 2021 travel and tourism index

How PSEi member stocks performed — May 25, 2022

Here’s a quick glance at how PSEi stocks fared on Wednesday, May 25, 2022.

Philippine stocks track rebound in Asian markets

PHILIPPINE STAR/KRIZ JOHN ROSALES

PHILIPPINE SHARES corrected on Wednesday, tracking Asian markets, even as concerns over rate hikes and the global economy’s prospect continued to affect sentiment.

The benchmark Philippine Stock Exchange index (PSEi) went up by 20.31 points or 0.30% to close at 6,597.76 on Wednesday, while the broader all shares index improved by 3.64 points or 0.10% to 3,554.04.

“The local stock market corrected higher today after declining for two straight days, nevertheless defying the latest declines in the US stock markets… Markets also gained after US Treasury yields, with the benchmark 10-year tenor near one-month low at 2.7%,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message on Wednesday.

“Philippine shares rebounded, as foreign investors stayed away from dropping tech names for bonds on fears of global economic slowdown. The 10-year Treasury yield slipped as low as about 2.7% on Tuesday after topping 3% earlier this year,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

US Treasury yields fell to one-month low on Tuesday after housing data pointed to a cooling economy as the Federal Reserve presses on with aggressively hiking interest rates to tackle soaring inflation, Reuters reported.

Longer-dated yields have dropped from 3-1/2-year high as sharp declines in stocks increased demand for US government debt, and as investors worry that the Fed’s continued rate hikes will tip the economy into a recession.

Two-year note yield fell to 2.464%, the lowest since April 19, before rising back to 2.483%. Benchmark 10-year note yield dropped to 2.718%, the lowest since April 27, before rebounding to 2.76%.

Asia stocks rose on Wednesday even as central banks piled into aggressive rate hikes to battle soaring inflation and left investors worried about slower global growth.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.72%, with Australian shares up 0.72%, Seoul adding 0.84% and Taiwan advancing 1.07%.

Back home, the majority of the sectoral indices ended in the red except for holding firms, which climbed by 71.24 points or 1.18% to 6,089.75, and financials, which rose by 8.74 points or 0.55% to 1,574.95.

Meanwhile, mining and oil fell by 60.81 points or 0.43% to 11,730.05; property declined by 11.94 points or 0.39% to 3,005.14; services gave up by 7.36 points or 0.39% to 1,865.91; and industrials dropped by 5.44 points or 0.05% to 9,242.70.

Decliners beat advancers, 107 versus 76, while 57 names ended unchanged.

Value turnover decreased to P5.99 billion on Wednesday with 1.03 billion shares changing hands from P20.20 billion with 1.54 million issues seen on Tuesday.

Net foreign selling retreated to P382.62 million from P9.58 billion seen on the previous trading day. — Luisa Maria Jacinta C. Jocson with Reuters

Peso weakens as gov’t lowers growth goal

BW FILE PHOTO

THE PESO inched lower against the dollar for the third straight session on Wednesday after the country’s economic managers narrowed its growth target for the year.

The local unit closed at P52.355 per dollar, weakening by 3.5 centavos from its P52.32 finish on Tuesday, based on data from the Bankers Association of the Philippines.

The peso opened Wednesday’s session at P52.34 against the dollar. Its best showing was at P52.30, while its intraday low was at P52.38 versus the greenback.

Dollars exchanged declined to $804.2 million on Wednesday from $1.02 billion on Tuesday.

The weaker peso was also likely due to the Development Budget Coordination Committee’s (DBCC) downgraded gross domestic product (GDP) growth target for 2022, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The DBCC adjusted its macroeconomic assumptions, fiscal program and growth targets for 2022 to 2025 to consider recent domestic trends and external developments.

The full-year 2022 growth target was revised to 7-8% from 7-9% and the average inflation rate assumption was raised to 3.7-4.7% from 2-4% previously, reflecting the impact of soaring oil and food prices caused by the ongoing Russia-Ukraine war and supply chain disruptions.

Philippine GDP expanded by a better-than-expected 8.3% in the first quarter, surpassing the pre-pandemic output level as household spending surged amid the easing of coronavirus curbs.

This was a turnaround from the 3.8% contraction in the same period last year. It was also faster than the revised 7.8% growth in the fourth quarter of 2021. The first-quarter growth was the highest in three quarters or since the 12.1% seen in the second quarter of 2021.

Inflation climbed to 4.9% in April, the highest in more than three years, as oil and commodity prices soared amid the Russia-Ukraine war and supply chain disruptions.

On the other hand, the DBCC said it kept the GDP growth target of 6-7% for 2023 to 2025.

However, the DBCC is expecting inflation to return to the 2-4% target range for 2023 to 2025.

The body also revised its revenue projections upward as it expects economic activity to continue improving over the medium term.

Meanwhile, a trader said in an e-mail that the local unit “weakened ahead of hawkish expectations prior to the release of the Federal Reserve policy minutes overnight.”

Still, the peso might rebound amid expectations of continued weakness in the second estimate of the first quarter US GDP report, the trader said.

For Thursday, the trader gave a forecast range of P52.25 to P52.45 versus the dollar. — KBT

DoTr gearing up for arbitration after rejection of LRT-1 fare hike

PHILIPPINE STAR/EDD GUMBAN

THE Department of Transportation (DoTr) is gearing up for arbitration after Light Rail Manila Corp. (LRMC), the private operator of Light Rail Transit Line 1 (LRT-1), was not granted a fare hike, an undersecretary said on Wednesday.

“Considering the current environment, with inflation na tumataas ang lahat ng bilihin ng tao, hindi talaga natin tinitingnan sa ngayon ang pagtataas ng pamasahe (we’re not looking at raising fares given the current level of inflation, with prices of many goods rising), so we really are not able to increase or grant the requested fare increase by our concessionaire for the LRT-1,” Transportation (DoTr) Undersecretary for Railways Timothy John R. Batan said during a briefing.

“On the notice of arbitration filed, this is of course being studied by our legal department as well as the DoTr’s counsel, the Office of the Solicitor General. We will handle this according to the concession agreement,” he added.

The LRMC recently filed a request for arbitration with the International Chamber of Commerce over the company’s disputes with the DoTr and the Light Rail Transit Authority (LRTA), which issued the 32-year concession agreement (CA) for the LRT-1.

LRMC hopes to recover around P2.67 billion in compensation claims and costs resulting from delays in the implementation of fare adjustments for 2016, 2018, and 2020, Metro Pacific Investments Corp. (MPIC) said in a disclosure to the stock exchange.

The partners in LRMC are Metro Pacific Light Rail Corp. with a 55% stake, Ayala group’s AC Infrastructure Holdings Corp. with 35% stake, and Macquarie Infrastructure Holdings (Philippines), Inc. with 10% stake.

“The request pertains to the adjustment of the approved fare for the years 2016, 2018 and 2020 and LRMC’s claims for compensation relating to the grantors’ contractual obligations to compensate LRMC for the difference between the stipulated fare and the approved fare based on the schedule provided in the CA, following the grantors’ inaction on LRMC’s application for fare adjustments based on the CA,” MPIC said.

The request also covers “the losses, costs and expenses incurred by LRMC for the grantors’ failure to deliver to LRMC the required number of light rail vehicles that meet the stipulated technical requirements under the CA and the structural defects on the existing LRT-1 system, both of which are required to ensure that LRMC is able to provide a safe, efficient and reliable service to the public as required under the CA.”

The company also said that “despite compliance with applicable legal requirements and after exerting best efforts to amicably discuss the foregoing claims with the grantors, LRMC has not received any offer from the DoTr and LRTA.”

The settlement of such claims is “critical” to enable LRMC to continue to be “viable and provide safe, efficient and reliable services to the public,” the MPIC noted.

“Notwithstanding the dispute, LRMC remains committed to providing the best possible services to the public. In fact, despite the non-performance by the grantors of their obligations and the non-payment of LRMC’s claims, LRMC has implemented significant operational improvements, rehabilitation projects, and system upgrades to the existing system and continued the construction of the Cavite Extension safely and efficiently,” it added.

MPIC’s partner in LRMC, Ayala Corp., has expressed an intention to divest. MPIC said it is considering increasing its stake, but that its decision would depend on the next government’s plans for LRT-1.

MPIC is one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains an interest in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

NEDA’s Chua says pending reforms to help next government

REFORM measures that remain pending in Congress during its remaining two weeks of session deserve a second look by the incoming administration, after the pandemic delayed their passage, Socioeconomic Planning Secretary Karl Kendrick T. Chua said.

“We did not finish the reforms that we wanted to (carry out) primarily because the pandemic hit us and we have to prioritize our time, money, and effort. I would say na ’yung mga naka-pending bilisan (the approval of pending measures be accelerated). Kung hindi kaya ipasa nitong Congress (If this Congress cannot pass it) in their last two weeks, the next Congress can take a look at it with urgency,” Mr. Chua said during an appearance at the Kapihan sa Manila Bay.

He said the pending tax reform programs include package three, which deals with property valuation reform and package four, which seeks to restructure the taxation of passive income. Mr. Chua said the Regional Comprehensive Economic Program (RCEP) treaty, currently pending in the Senate, is expected to expand opportunities for the economy.

“We have other pending measures. For instance, NEDA (the National Economic and Development Authority) is pushing for reforms in the water sector to secure our water supply and provide better sanitation for everyone,” Mr. Chua said.

Mr. Chua also said a pending livestock, corn, and poultry bill in the Senate will help address increasing commodity prices.

Mr. Chua called attention to the importance of the proposed Natural Land Use Act, which is “mentioned in almost every SONA (State of the Nation Address) but not yet passed.”

“Our land area is 300,000 square kilometers and that will not increase. The population is increasing so we better know how to use it best.”

Once passed, Mr. Chua said the bill will allow for better urban planning and regulate the use of land, mountains, and watersheds.

The National Land Use Act has been in the works since 1994, during the administration of President Fidel V. Ramos. The legislation was proposed as Senate Bill No. 1522 during the 17th Congress, when it was billed as a “policy for the rational, holistic, and just allocation, utilization, management and development of our land resources.”

In 2017, it made it through the House as House Bill 5240, with five versions of the bill presented in the Senate, where no public hearings were held.

“We hope we will have a chance to explain to legislators what the benefits really are of this law,” Mr. Chua said.

He said NEDA supports the resumption of face-to-face schooling.

In the proposed 2023 national budget, Mr. Chua said that “education receives the highest budget in accordance with the constitutional provision.”

“The D in NEDA stands for Development. Development includes education. In fact, it’s the foundation of development.”

Mr. Chua said that in most countries, coronavirus disease 2019 (COVID-19) outbreaks did not happen in schools, but rather, in situations where minimum health and safety standards are not observed.

“I understand from the Department of Education report that the (face-to-face) pilot was a huge success, which means we can replicate it in all schools,” he added.

“The median age of the Philippine population is 24 years old. Fifty percent are 24 years old and 40% are below 21. In other words, 40% of the population is in school.  That’s a big driver of economic activity.”

Mr. Chua said dormitories and food businesses that operate near schools rely on students for income.

“That’s why our economic growth is still not reaching its original potential,” Mr. Chua said.

He said NEDA is proposing an apprenticeship bill to improve opportunities for graduates. — Keisha B. Ta-asan

Wind power seen as potential pathway for meeting net-zero goals

REUTERS

THE PHILIPPINES has the potential to harness ample wind energy resources en route to meeting its net-zero goals, according Torbjørn Kirkeby-Garstad, general manager for Southeast Asia of Scatec, a renewable power producer.

“The Philippines is blessed with lots of potential for offshore wind. Already now, we are looking at 7 to 8 gigawatts (GW) of concessions that have been granted. There is great potential for the Philippines when it comes to reaching those goals. Offshore wind (power) will be part of that solution,” Mr. Garstad said on the first day of the BusinessWorld Virtual Economic Forum on Wednesday.

Raymond Rufino, chief executive officer of NEO, concurred, saying that opting for renewable energy is one of the avenues currently available to property developers in the absence of an incentive scheme for such sustainable construction.

“We’ve long been advocating for more incentives for both green buildings and net-zero. Incentives are challenging because especially when it comes from the government (which needs) to raise revenue and taxes,” Mr. Rufino said.

“One of the major steps you can take if you are in the real estate industry is source your power (from) renewable energy. Even if significant incentives are not in place, as long as that renewable energy cost is competitive with other forms of non-renewable energy, I think the majority of companies will select renewable energy sources for their requirements,” Mr. Rufino said.

Maria Yolanda C. Crisanto, Globe Telecom, Inc. chief sustainability and corporate communications officer, said that if the Philippines is to meet its target, small businesses also have to be enabled to pursue net zero.

“Only the Securities and Exchange Commission (SEC) has actually required that publicly listed companies do sustainability reporting. What we need to do is for the government to enable SMEs (small- and medium-sized enterprises) to do this as well. It is all of us together,” Ms. Crisanto said.

The Philippines has committed to reduce its greenhouse gas emissions 75% by 2030 under the Paris Agreement on Climate Change.  

Ms. Crisanto said the Philippines is not close to achieving the 75% target, adding that the incoming administration should help attract more investment in sustainability ventures.

“There has to be more investment. There has to be more enabling laws that will help kickstart more investment and perhaps look at opening up more industries like electric vehicles and agriculture,” Ms. Crisanto said.  — Revin Mikhael D. Ochave

BPO industry association says BIR inspections spooking members

THE inspections being conducted by the Bureau of Internal Revenue (BIR) to verify compliance with government orders to resume on-site work in economic zones has sown confusion within the information technology and business process management (IT-BPM) firms, the industry’s association said.

IT and Business Process Association of the Philippines (IBPAP) President and Chief Executive Officer Jack Madrid said the confusion stems from the letters of authority (LoAs) under which IT-BPM companies, also known as business process outsourcing (BPO) firms, are evaluated. The industry believes the 70% on-site work rule laid down by the Philippine Economic Zone Authority (PEZA) is valid, as against the 90% onsite level required by the Financial Incentives Review Board (FIRB).

“What we are concerned about is the ongoing confusion with some of the inspections,” Mr. Madrid said in a television interview on Wednesday.

The industry is required by tax law to conduct all its work within economic zones, a rule which was relaxed for safety reasons during the pandemic. The relaxed rules allowing more work-from-home (WFH) arrangements expired on March 30.

FIRB Chairman and Finance Secretary Carlos G. Dominguez III has said that economic zone locators may choose to operate on an expanded WFH basis, but must surrender their fiscal incentives.

“Some of the inspections have caught our locators a little bit off-guard because they hold letters of authority which allow 70% (on-site work). Some of the questions posed in some of the reports requested by the inspectors are not consistent with what the LoAs have stated as to (30%) WFH. This has caused some confusion” when locators examine the inspectors’ mission orders, he added. 

Mr. Madrid said hybrid work arrangements in the IT-BPM industry are “more than capable” of delivering services to its customers.

“Overall productivity and customer satisfaction during the pandemic actually improved. Our industry has proven that we are more than capable of delivering the same quality of service to customers around the world… Our industry grew 120,000 new jobs for Filipinos in 2021 alone,” Mr. Madrid said.

“So, I see no better proof of why this hybrid/WFH model works and not to mention also that the IT-BPM industry is one of the large generators of work for Filipinos,” he added.

The BIR had announced the creation of a task force to inspect economic zone locators for compliance with the eligibility requirements for tax incentives — including on-site work — laid down by Republic Act No. 11534, or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

PEZA announced in April that it is permitting 70% on-site work for locators, who had requested the relaxed on-site work rules be extended until Sept. 12, by which time the state of calamity declared during the pandemic will have expired. PEZA has taken the position that it is authorized by CREATE to permit 70% on-site work.

Mr. Madrid said IBPAP is evaluating hybrid work arrangements in light of the ongoing reopening of the economy.

“We are conducting ongoing discussions on what the WFH/hybrid arrangements will look like. I have always appealed for a smooth transition to on-site operations for our members,” Mr. Madrid said.

“What this smooth transition might look like will vary depending on the customers that our Filipino workforce serve,” he added. — Revin Mikhael D. Ochave

Incentives approved for Converge, 3 other telecom companies

CONVERGE ICT SOLUTIONS INC./YOUTUBE

THE Fiscal Incentives Review Board (FIRB) has approved the application for tax incentives of Converge ICT Solutions, Inc. and three other telecommunication companies, following the recommendation of the Board of Investments.

The tax incentives granted to Converge include a four-year income tax holiday, five years of enhanced deductions, and 11 years of duty exemption on equipment and raw materials. These were granted to Converge for its fiber optic network for high-speed internet broadband, with a total project cost of P150.6 billion.

“We expect Converge to deliver on its performance commitment of faster and cheaper internet access in remote localities as this will not only address our pain points with regard to connectivity but also provide more employment opportunities to our people in rural areas,” Finance Secretary and FIRB Chairman Carlos G. Dominguez III said in a statement issued by the Department of Finance (DoF).

The other three telcos granted the same tax incentives were SkyTowers Infra, Inc., Frontier Tower Associates Philippines, Inc., and Transcend Towers Infrastructure Philippines, Inc.

However, the incentives were conditional on building telecommunications towers in areas that lacked service.

The other three telcos’ projects cost a combined P78.2 billion.

Converge’s connectivity facility projects for broadband are the largest of 11 big-ticket incentive applications approved by the FIRB this year, the DoF said in a separate statement issued on Monday.

“The approval of these projects is urgent, given the current gap in the number of towers needed to service our population,” FIRB Secretariat Head and Finance Assistant Secretary Juvy C. Danofrata said. “We are optimistic that these approved applications will pave the way for our country to finally have improved connectivity and more quality service.”

At a joint Asian Development Bank and an ASEAN+3 Macroeconomics Research Office webinar last May 13, participants heard that internet speeds in the Philippines were among the slowest in the Association of Southeast Asian Nations (ASEAN), at 49.5 mbps, nearly a 10th of the speeds realized in Singapore. — Tobias Jared Tomas

Senators back Marcos plan for business relief package

SENATORS have expressed support for a plan by President-elect Ferdinand R. Marcos, Jr., to legislate a relief package for businesses affected by the coronavirus disease 2019 (COVID-19) pandemic.

“This measure is badly needed to jump-start our economic recovery,” Senate Majority Leader Juan Miguel F. Zubiri told reporters in a Viber message.

At a news conference at his headquarters on Monday, Mr. Marcos said he will look at the 2023 national budget, which is still being prepared, to “find sufficient funds” for the proposed package.

He said he plans to “move some public expenditure away from non-investment expenditures to more investment expenditures” to “revitalize the economy.”

Mr. Zubiri noted that his campaign promise was to pass the Bayanihan III stimulus package to support distressed industries such as tourism and micro, small, and medium enterprises (MSMEs), which are aligned with Mr. Marcos’ plans.

Mr. Zubiri, a candidate to become Senate President in the 19th Congress, said he will support such a relief bill.

Incoming Senator Francis Joseph G. Escudero said such a package “is exactly what we need, especially for MSMEs and the agriculture sector.”

“Election spending spurred and increased our GDP (gross domestic product) and must be sustained in order to spur the economy further and create needed stable jobs,” he added.

Aside from borrowing, Mr. Escudero said other sources of funds could be the sale of government assets; improving tax collection efficiency; successful curbs on corruption; and the proper allocation of budget resources.

When Mr. Marcos was asked on Monday whether he would consider selling government assets to fund the stimulus package, he said: “I’m always very wary of selling government assets, so as a matter of principle I would rather not.”

Economists have said the next administration should outline a clear pandemic recovery plan and assess the status of public finances to make any stimulus package more responsive to emerging needs.

Senator Aquilino Martin D. Pimentel III said details of how to fund the proposed stimulus must be firmed up to ensure success. “The general ideas are good, but we have to look at the details.”

“I look forward to working with like-minded and development or reform-oriented people in government, regardless of affiliation or color they may have had or carried in the last elections, and call on our people to do the same,” Mr. Escudero said. “Our country and people deserve nothing less.”

Incoming Senator Lorna Regina B. Legarda also expressed support for the Marcos stimulus package, promising to help find adequate funding in the legislative process.

“I will ensure that MSME programs of various government agencies will be effectively implemented,” she said. “I will support the economic empowerment of every Filipino family.”

The national expenditure program will be thoroughly studied, she added, to align it with the imperatives of pandemic recovery.

House Deputy Speaker and Davao City Rep. Isidro T. Ungab said the Marcos plan to expedite the passage of the 2023 budget signals his support for economic recovery.

Chances are slim that the 2022 budget can be tapped to fund the proposed stimulus, he said in a statement on Wednesday. However, Mr. Ungab said the Department of Budget and Management (DBM) can help identify any unused appropriations or possible savings to support the planned stimulus.

He said he is awaiting the incoming administration’s blueprint for recovery. “This roadmap may take into consideration the proposed stimulus package so that the necessary funding will already be included in the investment-led expenditure.”

The Medium-Term Philippine Development Plan for 2023 to 2028 should also be updated, he said, since it will lay the groundwork for budgeting in the coming years. — Alyssa Nicole O. Tan

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