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Pru Life UK partners with Robinsons Bank to offer credit cards

PRU LIFE UK will be entering the credit card business through a partnership with Robinsons Bank Corp.

“Very soon we will be rolling it (credit cards) out. Right now, we expect it maybe next month. We have been rolling out the applications to our customers now,” Allan M. Tumbaga, senior vice-president and chief marketing officer at Pru Life, said at an online briefing on Wednesday.

Mr. Tumbaga said they will release more details on the cards soon, noting the product will be exclusive to their clients.

The credit cards will be issued by Robinsons Bank. The insurer and the lender have been in a bancassurance partnership since 2018.

Meanwhile, Mr. Tumbaga said they are still studying if they will offer more products especially meant to protect clients from the impact of the coronavirus disease 2019 (COVID-19).

He said with vaccination rates rising, the virus might evolve and become just like the common flu. In this case, Mr. Tumbaga said COVID-19 could be a part of regular insurance products, like those covering critical illnesses.

“Specific packages [for COVID-19], that’s always a consideration now… We do expect to expand our roster of services,” he said.

Moving forward, Mr. Tumbaga expects insurance take-up to continue growing, although not as fast as expansion seen before the pandemic, as people have realized the need for protection.

“The younger people are even much more interested now than ever considering the pandemic showed that anything can happen to you. So it’s best to be prepared always,” he said.

In 2020, Pru Life UK recorded the second- highest net premiums in the life insurance sector worth P30.98 billion, based on data from the Insurance Commission.

Its net income of P3.27 billion was the fourth biggest in the industry last year, while it ranked fifth in terms of its assets with P117 billion. — L.W.T. Noble

PHL falls in digital competitiveness

THE PHILIPPINES slipped one spot to 58th in a global digital competitiveness index as a result of declines in future readiness, technology and knowledge. Read the full story.

PHL falls in digital competitiveness

How PSEi member stocks performed — September 29, 2021

Here’s a quick glance at how PSEi stocks fared on Wednesday, September 29, 2021.

Prices of fresh pork seen stabilizing in Metro Manila

PHILSTAR

THE retail price of fresh pork in wet markets in the National Capital Region (NCR) has “stabilized,” according to the Department of Agriculture (DA).

Citing findings of its price monitoring unit, the DA said in a statement Wednesday that pork shoulder (kasim) and belly (liempo) are at P280 per kilogram (/kg) and P340/kg, respectively.

The DA said January prices for the two commodities were at P360/kg and P400/kg respectively.  

“The DA projects a continuing downward movement of pork prices at NCR wet markets. The retail prices generally follow the movements of farmgate prices of hogs,” it said.

It added that frozen pork sold in wet markets is about P60 cheaper compared to fresh pork, with frozen kasim at P220/kg and frozen liempo P280/kg.

“However, only seven out of every 100 meat stalls are selling frozen pork in NCR wet markets as frozen pork requires chillers,” the DA said.

According to the DA, pork producers will be given assistance that will allow the hog industry to sustain its repopulation and recovery efforts after the African Swine Fever outbreak.

President Rodrigo R. Duterte issued two executive orders in May that reduced the tariffs charged on imported pork and expanded the volume of pork imports that can be imported under the minimum access volume quota, which pay lower tariffs compared to out-of-quota pork imports.  

Asked to comment, Pork Producers Federation of the Philippines, Inc. President Rolando E. Tambago said via phone message that declining farmgate prices are not good for the industry due to rising production costs.

Mr. Tambago said the current farmgate price of live hogs in Luzon fell to P160 to P180/kg from P220/kg while Visayas and Mindanao prices vary from P120 to P140/kg, down from P180/kg.

“Instead of (Agriculture Secretary William D. Dar) being happy that the farmgate prices of hogs are declining, he should know and understand… that our farm input costs are also increasing. An example is the price of yellow corn for feed. It rose 57% to P22/kg because the input cost of corn farmers such as fertilizer also increased to P1,400 per bag from P850 per bag,” Mr. Tambago said. — Revin Mikhael D. Ochave

DBM releases additional P451 million for health workers’ risk allowances

PHILSTAR

THE DEPARTMENT of Budget and Management (DBM) has released an additional P451.3 million for the special risk allowances (SRA) of health workers assigned to coronavirus disease 2019 (COVID-19) wards.

The DBM said in a statement Wednesday that P407.08 million was sourced from the contingent fund of the national budget, while the remaining P44.23 million was charged to the miscellaneous personnel benefits fund.

The additional allowances will be given to eligible public and private healthcare workers who were either directly catering to or are in contact with COVID-19 patients between Dec. 20, 2020 and June 30, 2021.

This brought the total SRA released to P8.23 billion so far, covering 499,117 health workers.

In response to a BusinessWorld query, the DBM said P1.185 billion is awaiting approval from the Office of the President (OP), which could benefit 63,812 more frontliners.

The DBM did not provide a timetable for the release of the funds awaiting OP approval.

The DBM said it is releasing additional funds to provide the risk allowance to health workers who were not covered when the Bayanihan to Recover as One or Bayanihan II law expired on June 30.

Under Bayanihan II, a special risk allowance of P5,000 per month was allotted for medical personnel assigned to facilities with COVID-19 patients, as well as a separate P3,000 monthly hazardous-duty allowance.

In a budget hearing earlier this month, the Department of Health (DoH) said it proposed a P73.99-billion budget to the DBM for 2022 budget, including P50.4 billion in new funds to support allowances of healthcare workers. However, the DoH said the budget for allowances was slashed by the executive department. — Beatrice M. Laforga

Foreign chambers back ease of paying tax bill

PHILIPPINE STAR/EDD GUMBAN

THE Joint Foreign Chambers of the Philippines (JFC) said Wednesday that the Senate should immediately tackle the Ease of Paying Taxes bill, noting that government needs to find creative ways to collect revenue to fund its pandemic response.

The House of Representatives on Sept. 15 approved on third and final reading House Bill No. 8942 or the proposed Ease of Paying Taxes Act, which seeks to simplify the process of filing and paying taxes by removing venue restrictions and introducing a medium taxpayer category.

“But at the same time government should facilitate compliance by taxpayers,” the JFC said in a statement, which was signed by the American, Australian-New Zealand, Canadian, European, Japanese, and Korean business chambers, along with the Philippine Association of Multinational Companies Regional Headquarters, Inc.

The JFC sent a letter to the Senate Ways and Means Committee to ask it to tackle the bill, in which the foreign chambers noted the Philippines’ 95th place ranking among 190 economies in the 2020 World Bank Doing Business report.

The annual ranking, which had since been discontinued, measured ease of paying taxes as an indicator.

“We are certain that ending being the only country to require an OR (official receipt) and not accept the invoice is a positive step. If other countries that are ranked higher than the Philippines do not require this extra paperwork, then it is common sense to remove the requirement as soon as possible,” the JFC said.

The measure also aims to remove the P500 annual taxpayer registration fee, create registration facilities for non-resident taxpayers, and establish a “Taxpayer’s Bill of Rights.”  

The foreign business groups previously sent a request to House Speaker Lord Allan Jay Q. Velasco to support the approval of House Bill No. 8942. The bill was one of the priority measures listed by Mr. Velasco when plenary deliberations resumed for the third and final session of the 18th Congress.

The measure is one of 17 priority reform bills supported by more than a dozen business groups. — Jenina P. Ibañez

Coffee crop being evaluated for pest, disease resistance

REUTERS

THE RESISTANCE of the domestic coffee crop is being assessed for its ability to withstand pests and diseases by the Department of Science and Technology (DoST) and University of the Philippines–Diliman.

The two institutions have partnered on a project that will create a detection system for such threats to coffee growers, the DoST said.

The project hopes to identify the coffee varieties most susceptible to the various threats as well as the varieties which are most resistant.

Project funding will come from the DoST’s Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (PCAARRD).  

According to PCAARRD, the detection system will seek out molecular markers that will facilitate resistance screening of coffee varieties.

“The project is expected to aid in avoiding the distribution and planting of affected coffee plants that may cause more losses to coffee farmers,” PCAARRD said in a recent statement.

“Through this, the project team hopes to strengthen the coffee industry and help in rehabilitating the coffee farms in Batangas and Cavite that were destroyed by heavy ashfall during the eruption of Taal volcano in 2020,” it added.

Ernelea P. Cao, the project leader, said coffee production is hindered by the berry borer pest and coffee leaf rust disease.

“A detection system will benefit our coffee growers, farmers, and researchers who can use the kit to identify the susceptible coffee varieties,” Ms. Lao said.

The Philippine Statistics Authority estimates that dried coffee berry production in the second quarter dropped 0.3% year on year to 5,866.16 metric tons (MT).

Robusta coffee was the most produced type, accounting for 56.6% of total production, followed by Arabica coffee at 30.2%, Excelsa coffee 12.5%, and Liberica coffee 0.5%.

Soccsksargen (South Cotabato, Cotabato, Sultan Kudarat, Sarangani, and General Santos City) was the top coffee-producing province, with output of 30.7% of the national total or 1,800.92 MT. — Revin Mikhael D. Ochave

Writ of Kalikasan could force environmental impact study of Manila Bay dolomite beach

PHILSTAR

NON-GOVERNMENT ORGANIZATION Advocates of Science and Technology for the People (Agham) said it may apply for the issuance of a writ of kalikasan against the government’s Manila Bay dolomite beach, with a view towards triggering an environmental impact assessment (EIA).

“(The issuance of the) writ of kalikasan… activates discovery measures. It will hopefully get the DENR (Department of Environment and Natural Resources) to conduct an EIA (and) produce all of the documents related to the project,” Tara Alessandra S. Abrina, an Agham member, said in a briefing Wednesday.

A writ of kalikasan may be issued by the courts to an individual or group on the basis of the constitutional right to a balanced and healthy ecology, in the event such rights are violated or threatened. Parties holding this legal remedy may file a motion for the inspection of documents or an inspection of the area.

The beach project has yet to undergo an EIA, with a scientist from the UP Marine Science Institute (UP MSI) confirming that the DENR has not made any attempts to contact the institute to conduct such an assessment.

Marine science professor Maria Lourdes San Diego-McGlone said that UP MSI Director Laura T. David made no mention in a recent meeting of any attempts by the Environment to seek the expertise of the institute in conducting any assessment of the project.

Last year, the DENR said the dolomite beach did not need to undergo an environmental impact study since it is a rehabilitation, not construction project.

Agham’s Ms. Abrina said the presence of dolomite sand in the bay will likely increase the suspended solids in the water, affecting the feeding and survival of fish and other marine organisms.

Citing its recent policy paper, Agham said that the dolomite overlay has shifted the priority and resources to tourism, rather than the Supreme Court-ordered restoration of the bay’s water to “recreational water class 1” or “Class SB” levels.

“While marine science and biology experts from public institutions and the academe have expressed their concern for the dolomite project, the Duterte government remains firm in defending and even requested an additional budget for the project,” it said in a statement Wednesday.

President Rodrigo R. Duterte named the dolomite beach a priority project in his State of the Nation Address, with an additional P265 million of funds allotted for its second phase. — Angelica Y. Yang

DTI backs bigger role for small businesses in new trade deal with Australia, New Zealand

REUTERS

THE DEPARTMENT of Trade and Industry (DTI) expressed support for the inclusion of small businesses in an ASEAN-Australia and New Zealand free trade deal upgrade in recent virtual discussions by trade ministers.

The DTI said representatives in the ASEAN dialogue partner consultations on Sept. 13-15 discussed the possible completion of negotiations for the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) upgrade by next year.

Trade Secretary Ramon M. Lopez called for a dedicated chapter that will support the participation of micro-, small-, and medium-sized enterprises (MSMEs) in the global trading system to help them recover from the effects of the coronavirus pandemic, the DTI said in a statement Wednesday.

“The Philippines would like to highlight the role and importance of MSMEs in the ASEAN-Australia-New Zealand region, as they play a vital role in the economy,” Mr. Lopez said.

“Globally, MSMEs are considered the backbone of national economies and the inclusion of this (MSME) Chapter in the Agreement will ensure that initiatives are put in place so that they can benefit from the trade opportunities in the FTA.”

According to a general review of AANZFTA released in 2017, parties may consider ways to incorporate MSMEs in the free trade deal’s framework to gain greater access to global value chains, noting that such firms account for 98% of businesses in Asia.

“There are a growing number of MSMEs interested in taking advantage of export opportunities as part of the evolving supply chains in the AANZFTA region. These MSMEs are interested in engaging in discussions with governments on how trade agreements can benefit businesses of all sizes,” the report said.

The Trade department also noted that ASEAN and its trade dialogue partners emphasized the need for more cooperation in vaccine procurement and digital trade.

“This includes the call to democratize vaccine production, and research and development by partnering with the Philippines and other ASEAN Member States as a production hub for vaccines and working with research organizations to increase competency on science and technology,” the DTI said. — Jenina P. Ibañez

Overseas filing of work visa applications now allowed

The COVID-19 pandemic forced most countries to close their borders temporarily, thus posing challenges to international travelers. Multinational companies are now faced with the problem of moving their people across borders, especially when the skill sets of foreign nationals are required to run their Philippine businesses. The Philippines, home to several multinational companies, imposed a travel ban for inbound foreign nationals when the pandemic hit last year. In March 2020, only Filipinos with their children and foreign spouses, accredited foreign government/international organization officials, and foreign airline crew were allowed entry.

Currently, only foreign nationals (FNs) falling under specific categories of exemption (i.e., diplomats, Filipino dual citizens, and holders of immigrant or non-immigrant visas) are allowed to enter the Philippines, subject to the government’s quarantine protocols. Other FNs, traveling under tourist or temporary visitor visas, may only be permitted entry if they obtain an Entry Exemption Document (EED) from the Department of Foreign Affairs (DFA) and an entry visa from a Philippine Embassy or Consulate. This procedure became the norm when the visa-free entry privileges and tourist visas issued by Embassies and Consulates around the world were suspended.

Thus, companies are left with no recourse but to secure an EED for their foreign employees to deploy them to the Philippines. However, the EED is not easily obtainable as it also needs an endorsement from a government agency that the services and reason for travel of the FN are critical and essential to the efficient business operations of the company. Only after arrival in the Philippines can the FN file for a work visa application to legally work in the country.

THE 9(G) WORK VISA
Even with fear looming over the new COVID variants, employers are clamoring to reopen the borders, with vehement requests to ease the travel restrictions to enable the deployment of their foreign employees. In response, the government, through the Inter-Agency Task Force (IATF) for the Management of Emerging Infectious Diseases, issued IATF Resolution 131-A on Aug. 5.

The resolution ultimately allowed qualified FNs to initiate their work visa applications with the Bureau of Immigration (BI) while still abroad. Specifically, this covers FNs who intend to come into the Philippines for long-term employment (i.e., more than six months) with a Philippine-based employer, or if the employment is in connection with foreign-funded government projects such as those in transportation and infrastructure.

To complement the IATF resolution, the Philippine BI issued Operations Order No. JHM-2021-004 on Aug. 16, providing specific guidelines for the issuance of a Pre-arranged Employee (Commercial) Visa [9(g)] for qualified applicants overseas. Briefly, 9(g) is the most common type of work visa secured by FNs seeking employment in the Philippines in a technical, managerial, or confidential capacity for more than six months.

PROCEDURE
Prior to the IATF Resolution and BI Operations Order, 9(g) work visa applications could only be filed if the FNs are in the Philippines since their latest visa arrival stamp and original passport are required to support the application. The processing time generally takes six to eight weeks, during which the FNs are unable to legally work, unless they secure a Provisional Work Permit (an interim work permit), which will entail additional filing costs for employers.

With the new BI procedure, the Philippine-based employer can submit the 9(g) work visa application on behalf of the FN it will employ even prior to arrival. Once approved by the BI, the application will be forwarded to the DFA-Office of Consular Affairs for transmittal to the Embassy or Consulate in the country where the FN is situated.

The 9(g) visa issued by the Embassy or Consulate will serve as the FN’s entry visa. Effectively, this replaces the EED and the need to secure a separate entry visa. However, the approved 9(g) visa will still be subject to registration and implementation at the BI within seven to 60 days following the FN’s arrival and completion of the mandatory quarantine period. Failure to report within this timeframe is a cause for non-implementation of the 9(g) work visa, unless a Motion for Reconsideration is filed on meritorious grounds.

The documentary requirements under the new procedure are similar to a regular 9(g) visa, thus making an Alien Employment Permit (AEP) an inevitable requirement. To resolve this, the Department of Labor and Employment (DoLE) issued Labor Advisory No. 16 on Aug. 31 to align its process with that of the BI and provide the guidelines for the issuance of an AEP or a Certificate of Exemption or Exclusion (as applicable) to FNs intending to come to the Philippines for long-term employment. Moreover, since the respective applications will be initiated while the FN is overseas, the set of documents which are signed overseas must be either authenticated at the Embassy nearest the place of execution or Apostilled by the concerned government agency of that country.

This new mechanism is a welcome development for most employers and FNs as it spares both parties from a longer processing timeline of a regular 9(g) work visa procedure. As they say, a company’s most important asset is its people. Allowing companies to move their most important assets efficiently and compliantly across borders when and as needed, may boost their growth potential, and in turn, help keep our economy afloat, especially during the pandemic.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Toni Rose L. Capistrano-Flojo is a Senior Manager at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network.

toni.rose.capistrano@pwc.com

Peso rebounds versus the dollar

THE PESO strengthened on Wednesday to return to the P50-per-dollar level on profit taking and gains at the local stock market.

The local unit closed at P50.865 per dollar on Wednesday, appreciating by 13.5 centavos from its P51 finish on Tuesday, data from the Bankers Association of the Philippines showed.

The peso opened Wednesday’s session stronger P50.95 a dollar. Its weakest showing was at P51, while its intraday best was at P50.82 against the greenback.

Dollars traded went down to $1.106 billion on Wednesday from $1.209 billion on Tuesday.

The peso appreciated versus the dollar following the stock market’s climb, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

The bellwether Philippine Stock Exchange index rose by 48.75 points or 0.7% to end at 6,934.11 on Wednesday, while the broader all shares index increased by 12.29 points or 0.28% to finish at 4,297.01.

Mr. Ricafort said lower coronavirus disease 2019 (COVID-19) cases also improved sentiment.

Health department data showed COVID-19 infections rose by 12,805 on Wednesday, bringing the active cases to 132,339.

Meanwhile, a trader said the peso strengthened on profit taking after it fell to the P51-per-dollar level.

For Thursday, Mr. Ricafort expects the local unit to move within P50.70 to P50.95, while the trader gave a forecast range of P50.75 to P51 per dollar. — LWTN

PSEi rebounds on bargain hunting, lower cases

SHARES climbed on Wednesday on bargain hunting and the lower coronavirus disease 2019 (COVID-19) infections recorded on Tuesday.

The benchmark Philippine Stock Exchange index (PSEi) went up by 48.75 points or 0.70% to close at 6,934.11 on Wednesday, while the broader all shares index gained 12.29 points or 0.28% to finish at 4,297.01.

“Market went on bargain hunting [on Wednesday] with [the infection] rate down to 13,000, while NCR (National Capital Region) level [was] lowered to moderate risk,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message, adding that the country’s vaccine rollout also boosted market sentiment.

The Health department recorded 13,846 new COVID-19 infections on Tuesday, which brought active cases to 132,139. Total infections were at over 2.52 million.

The government will roll out COVID-19 jabs to the general population, including minors, next month. Vaccine czar Carlito G. Galvez is also eyeing to vaccinate 85% of Metro Manila’s population.

“[The] market was in the red territory due to the negative spillovers from Wall Street caused by the rise in US Treasury yields and US government shutdown worries,” Japhet Louis O. Tantiangco, senior research and engagement supervisor at Philstocks Financial, Inc., said in a Viber message.

“Trading remained strong this Wednesday… above the year-to-date average of P7.16 billion,” Mr. Tantiangco added.

Value turnover decreased to P9.88 billion with 1.99 billion shares switching hands on Wednesday, down from the P15.04 billion with 2.14 billion issues traded the previous day.

Wall Street stocks ended sharply lower on Tuesday in a broad sell-off driven by rising US Treasury yields, deepening concerns over persistent inflation, and contentious debt ceiling negotiations in Washington, Reuters reported.

The Dow Jones Industrial Average fell 569.38 points or 1.63% to 34,299.99; the S&P 500 lost 90.48 points or 2.04% to end at 4,352.63; and the Nasdaq Composite dropped 423.29 points or 2.83% to 14,546.68.

US Treasury yields continued rising, with 10-year yields reaching their highest level since June, as inflation expectations heated up and fears grew that the US Federal Reserve could shorten its timeline for tightening its monetary policy.

Back home, sectoral indices were split on Wednesday. Holding firms climbed 103.07 points or 1.50% to 6,950.92; property rose 18.07 points or 0.59% to 3,048.35; and services inched up by 4.50 points or 0.23% to end at 1,917.20.

Meanwhile, industrials lost 57.90 points or 0.57% to close at 10,036.47; financials shaved off 2.97 points or 0.21% to 1,411.19; and mining and oil went down by 6.25 points or 0.06% to 9,085.88.

Decliners beat advancers, 109 against 85, while 49 names closed unchanged.

Net foreign selling slowed to P1.47 billion on Wednesday from the P1.94 billion recorded on Tuesday. — Keren Concepcion G. Valmonte with Reuters

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