Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 7071

DTI says safeguard duties to protect domestic jobs

TRADE Secretary Ramon M. Lopez disputed the auto industry’s claims of potential job losses caused by safeguard duties on car imports, countering that the duties are designed to protect manufacturing jobs rather than those of importers.

The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), following a pandemic-driven 41.6% sales drop as of November, said that duties would impede the sector’s recovery and pose a risk to employment in the industry.

Mr. Lopez in a mobile message to reporters on Wednesday said that CAMPI’s concern is based on the impact on import-based businesses rather than domestic manufacturers.

“Consumers have the option, and the dealers can now sell more of the locally made vehicles such as Toyota Vios and Innova and Mitsubishi Mirage and L300, the prices of which are not changing and therefore will be more attractive,” he said.

The Trade department imposed provisional safeguard duties on imported cars after an investigation found that a surge in imports hurt domestic manufacturers. The investigation was launched in response to an application from the Philippine Metalworkers Alliance (PMA), which linked the import surge to a decline in industry jobs.

Mr. Lopez said that it supported PMA’s petition after the investigation proved injury to the industry. Domestic vehicle and parts manufacturing jobs, he said, fell to 86,000 from close to 100,000 previously.

The department found that imported completely built cars rose to 274,847 last year from 88,013 in 2010.

“Safeguard duty is definitely meant to help and boost local manufacturing revival efforts and meant to protect local jobs in the manufacturing of cars and light commercial vehicles,” Mr. Lopez said.

“If we don’t impose this safeguard, after finding injury to local industry, then we are risking the remaining jobs of the Filipino workers,” he added.

PMA affiliate Sentro ng mga Nagkakaisa at Progresibong Manggagawa said that the measure will protect jobs, especially after more than a thousand car industry workers were laid off last year.

“Considering that due to the COVID-19 pandemic the Philippine economy is the worst hit in Asia if not the world, protection of Filipino jobs is vital and cannot be overemphasized,” it said in a statement.

The Association of Vehicle Importers and Distributors, Inc. said it does not believe import duties will attract investments and create more jobs in the Philippines, or improve manufacturing competitiveness in the region.

In effect for 200 days, the duties will take the form of cash bonds of P70,000 per passenger car and P110,000 per light commercial vehicle. The case will be sent to the Tariff Commission, which will conduct its own investigation and public hearings. — Jenina P. Ibañez

Quality certification ordered for two steel products

THE GOVERNMENT will require quality certifications for two more types of steel — hot-dip metallic-coated and pre-painted galvanized steel in coil and sheet form — before they are allowed for sale.

Foreign and domestic manufacturers are now required to obtain a Philippine Standard (PS) safety certification mark before being allowed to sell their products, the Department of Trade and Industry (DTI) said in a statement Wednesday.

Importers may only source products from manufacturers holding such certifications.

The rule only applies to steel products intended for roofing and “general applications.”

All other hot-dip metallic-coated and pre-painted galvanized steel in coil and sheet form, intended for use as raw material in manufacturing automotive products, appliances, furniture, and electronics, are not covered by the regulation. Hot-rolled carbon steel strips for pipes and tubing also do not need the certification.

Importers of these exempted products must apply for a certificate of exemption.

“This new technical regulation will not only level the playing field for the iron and steel industry firms but will ultimately ensure the safety and protection of the consumers,” Trade Secretary Ramon M. Lopez said.

DTI Undersecretary Ruth B. Castelo added that the certifications are intended to ensure that construction materials can withstand natural disasters.

Products manufactured by firms with PS licenses must have the PS mark before being allowed for sale.

The certification requirement is outlined in Department Administrative Order No. 20-10, issued on Dec. 28.

Plywood last year was returned to the list of products that must have the quality certification following a surge in imports since its removal from the list in 2015. — Jenina P. Ibañez

BIR to comply with SC TRO against collecting POGO franchise tax

THE Bureau of Internal Revenue (BIR) will comply with the Supreme Court’s (SC) ruling barring it from collecting the 5% franchise tax on Philippine Offshore Gaming Operators (POGOs).

“We will respect the TRO (temporary restraining order),” said Finance Secretary Carlos G. Dominguez III in a Viber message to reporters on Wednesday.

The Philippine Star reported Wednesday that the Supreme Court issued a TRO preventing the Department of Finance (DoF) and the BIR from collecting the franchise tax.

The order effectively blocks the government from implementing Section 11 of Bayanihan II, as well as the BIR’s Revenue Regulation 30-2020 and memorandum circulars 102-17 and 078-18, according to the report.

The ruling responds to a petition filed by 14 licensed POGOs that questioned the franchise tax, it added.

Republic Act 11494 or the Bayanihan to Recover as One Act (Bayanihan II) changed the basis of the five percent franchise tax to gross bets amid alleged cheating when computing their net winnings.

The DoF has also asked the Department of Justice (DoJ) and the office of the Solicitor General (SolGen) to comment on the TRO.

In a text message on Wednesday, BIR Commissioner Caesar R. Dulay said the “DoF referred the case to DoJ/SolGen.”

The Supreme Court had not released a statement on the TRO at deadline time.

Several POGOs exited the country last year, citing overly stringent tax rules. — Beatrice M. Laforga

Estrella-Pantaleon bridge seen completed in second quarter

THE Department of Public Works and Highways (DPWH) said Wednesday that the P1.46-billion Estrella-Pantaleon Bridge project connecting Makati City and Mandaluyong City is expected to be completed in the second quarter.

In a statement, Public Works and Highways Secretary Mark A. Villar said that motorists will be able to use the widened and modernized bridge in the “second quarter of 2021.”

The Chinese-funded project is now 72% complete and is 8% ahead of schedule, the department added.

The project is part of the government’s EDSA decongestion program.

“Designed to decongest Guadalupe Bridge along EDSA, the main bridge of Estrella Pantaleon is a 146.0-meter prestressed concrete girder bridge with V-shaped piers, while the approach bridge/viaduct is a 66.0-meter prestressed continuous girder bridge. The approach roads at both sides have a length of 294.46 meters,” the DPWH said.

The DPWH announced in January 2019 that it would close the old Estrella-Pantaleon Bridge for 30 months for “demolition and reconstruction.”

The project is among the 14 agreements signed during Chinese Premier Li Keqiang’s state visit to Manila in November 2017. — Arjay L. Balinbin

NIA revamp proposed following loss of irrigation revenue

THE Philippine Institute for Development Studies (PIDS) said in a study that changes are needed in the function and staffing of the National Irrigation Administration (NIA) to effectively operate in a free-irrigation environment.

In a research paper, “Assessment of the Free Irrigation Service Act,” the authors of the study said the NIA reorganization is required in order to operate in the new market conditions imposed by Republic Act No. 10969, or the Free Irrigation Service Act (FISA).

FISA, which took effect in February 2018, exempted farmers with landholdings of eight hectares or less from paying irrigation services fees (ISFs). According to the study, such landowners account for 98% of farms in the Philippines.

The study concluded that NIA should focus on its core mandate of operating and maintaining irrigation systems after the passage of the law.

“With the repeal of the collection of ISF, NIA is no longer expected to generate revenue. FISA covers budgetary requirements for operations and maintenance as well as the capital cost of irrigation systems,” according to the study.

“This implies that NIA, a government office mandated to develop all possible water sources for irrigation, is transitioning from a fee-collecting agency to one that specializes in technical assistance, contract design, and performance monitoring,” it added.

The authors urged NIA to hire staff with experience in capacity building, monitoring, and evaluating the irrigation management transfer program.

The PIDS study said the delay in the release of staff salaries under the old system will also be avoided since FISA mandates that the funding for operations and maintenance be remitted directly to the NIA.

One of the authors’ recommendations is for the government to explore water saving to qualify for subsidies for operations and maintenance.

“The current set of performance indicators provided in the implementing rules and regulations relate only to irrigation service, rather than longer-term issues of sustainability and water resource management,” according to the study.

Some of the other recommendations made by the study include a provision to increase the operations and maintenance subsidy, and a mandatory review to compare FISA with other social protection schemes.

“The aim is to evaluate whether the FISA is an effective instrument for delivering benefits for the poorest and most marginalized, relative to these other social protection schemes,” the study said.

Asked to comment, the NIA’s Office of Public Affairs and Information staff said in an e-mail that the agency is in the process of evaluating its organizational design.

“The NIA organizational strengthening is underway to meet the staff requirement of the evolving function and direction of the agency as embodied in the National Irrigation Master Plan 2020-2030,” it said.

The authors of the PIDS study are Roehlano M. Briones, Roberto S. Clemente, Arlene B. Inocencio, Roger A. Luyun, Jr., and Agnes C. Rola. — Revin Mikhael D. Ochave

Starting the year right

January, from the Latin “Ianuarius,” was named after Janus, the god of beginnings and transitions in Roman mythology. We have come to know it as the first month of the Gregorian calendar, ushering a brand new year. For accountants, especially those involved in compliance work, January is crunch time. It entails winding up year-end work, kicking off the busy season for completing the compliance requirements of various government agencies.

RENEWAL OF BUSINESS REGISTRATION
In general, all businesses are required to renew their registrations annually and pay the corresponding fees to the Local Government Unit (LGU) and the Bureau of Internal Revenue (BIR). Under the Local Government Code (LGC), LGUs can collect Local Business Tax (LBT), fees for the mayor’s permit, and other fees and charges.

Under Section 143 of the LGC, the LBT is imposed on the gross sales or receipts of an establishment depending on the nature of its business. As the basis for computing LBT, business establishments must submit a declaration or certification of gross sales or receipts for the previous year, the most recent Income Tax Return (ITR), and the Financial Statements for LGUs to validate the certification.

The deadline for the renewal of registration and payment of LBT in all cities and municipalities is on the 20th of January each year. Late payment of LBT is automatically penalized with a 25% surcharge on the base taxes, fees or charges, while an additional 2% monthly interest will be charged on the basic amount and the 25% surcharge.

On the other hand, the BIR collects an Annual Registration Fee (ARF) of P500 for every separate place of business, on or before the 31st of January each year. A compromise penalty of P1,000 plus a 25% surcharge and 12% annual interest will be imposed in case of delay or failure to pay.

REGISTRATION OF BOOKS OF ACCOUNT
There are three formats for books of account that taxpayers can maintain: manual, computerized, and loose leaf. Under Revenue Memorandum Circular (RMC) No. 82-08, manual books of account must be registered within 30 days from business registration, while a new set of books may be registered only after exhausting the leaves of the previously registered manual books.

On the other hand, taxpayers may opt to use a computerized accounting system (CAS) for efficiency. Taxpayers who obtain a permit to use a CAS will be required to submit their accounting records to the BIR in soft copy through CD-R, DVD-R, or other optical media, annually, within 30 days from the close of the taxable year. The books of account together with the required attachments must be submitted to the Revenue District Office (RDO) or to the Large Tax Assistance Division, whichever is applicable.

For loose-leaf books of account, the taxpayer shall maintain encoded details of the accounting records in the computer and shall generate copies in print using the duly approved format of the BIR. These loose-leaf forms must be bound as accounting records and submitted to the BIR within 15 days after the end of the taxable year.

In accordance with Revenue Memorandum Order (RMO) No. 7-15, a compromise penalty not exceeding P50,000 will be imposed in case of failure to keep books of account or records, depending on the level of gross sales, earnings, or receipts. On the other hand, a maximum penalty of P25,000 will be imposed in case of failure to timely submit the books of account for both CAS and loose-leaf books of accounts.

FILING OF ANNUAL INFORMATION RETURNS
Under RMC No. 73-19, there are three annual information returns which taxpayers are required to file: 1) Annual Information Return of Income Taxes Withheld on Compensation (BIR Form No. 1604-C), 2) Annual Information Return of Income Payments Subjected to Final Withholding Taxes (BIR Form No. 1604-F), and 3) Annual Information Return of Creditable Income Taxes Withheld (Expanded)/Income Payments Exempt from Income Tax (BIR Form No. 1604-E).

Details of the compensation paid or accrued in a given year must be declared in BIR Form No. 1604-C to be filed on or before Jan. 31 of the succeeding year. This information return is to be filed together with the alphabetical list of employees/payees from whom taxes were withheld and a separate alphalist schedule for minimum wage earners. On the other hand, BIR Forms 1604-F and 1604-E, together with the corresponding alphabetical list of payees, are due to be filed by Jan. 31 and March 1, respectively, of the year succeeding the calendar year in which expenses subject to final/expanded withholding taxes were paid or accrued.

A compromise penalty is imposed for each failure to file an information return, statement, or list, for neglect to keep any record, or for failure to supply any information required by the Tax Code or by the Commissioner of Internal Revenue on the prescribed date. Under RMO No. 7-15, the penalty is not to exceed P25,000 as an aggregate amount imposed for all counts of failures during a calendar year.

FILING AND SUBMISSION OF ANNUAL INCOME TAX RETURNS AND AUDITED FINANCIAL STATEMENTS
For corporations, the latest versions of the Annual Income Tax Returns (ITR) are as follows: a) BIR Form No. 1702-RT for corporations subject only to regular income tax; b) BIR Form No. 1702-EX for exempt corporations under the Tax Code and special laws, with other taxable income; and c) BIR Form No. 1702-MX for corporations with mixed-income subject to different rates or preferential rates. The deadline for the filing and payment of the annual ITR is the 15th day of the fourth month following the end of the taxable year. Failure to file and pay the corresponding tax due exposes the taxpayer to a 25% surcharge on the tax due, while 12% interest per annum will be imposed from the deadline of the payment until the time of full payment, plus a compromise penalty.

In general, a corporation with a fiscal year-end other than Dec. 31 must file audited financial statements stamped received by the BIR and Statement of Management Responsibility (SMR) to the Securities and Exchange Commission (SEC) within 120 calendar days from the end of its fiscal year. For corporations operating on a calendar year, the filing deadline depends on the last numerical digit of the company’s SEC registration number or license number. A penalty is assessed in case of late filing depending on the amount of the total assets reflected in the audited financial statements.

This compliance list is not comprehensive; hence, it is prudent to check if there are other additional requirements imposed by government agencies that apply to one’s business, especially if you have other special registrations (e.g., for tax incentives). To avoid finding yourself embroiled in a complicated situation at the start of the year, it is advisable to observe diligence in complying with annual regulatory requirements.

As author Vernon McLellan said, “What the new year brings to you will depend a great deal on what you bring to the new year.” So, let’s start the year right.

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.

 

Marvin L. Madrigalejo is a senior manager at the Client Accounting Services group of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 8845-2728

marvin.l.madrigalejo@pwc.com

Standout PBA ‘bubble’ performers to be feted

By Michael Angelo S. Murillo, Senior Reporter

PLAYERS who performed well in the lone Philippine Basketball Association (PBA) tournament last season will be spotlighted in awarding ceremonies later this month.

Set for Jan. 17, the virtual awards proceedings serve to honor the players for their efforts in helping the league salvage a season, which was seemingly lost because of the coronavirus pandemic.

The awards take the place of the annual Leo Awards which happens at the beginning of every PBA season.

“The players sacrificed in the bubble, being away from their families and all, to give PBA fans what they wanted. And credit to them because they gave their all every game and did not hold back while cooperating with the league in what it wanted to accomplish,” said PBA Commissioner Willie Marcial of the significance of the awards.

The league restarted its pandemic-hit Season 45 in October in a bubble setting at Clark City in Angeles, Pampanga, which lasted until early December with the Barangay Ginebra San Miguel Kings crowned as Philippine Cup champions.

In the bubble, participants were holed up in a controlled environment in Clark for the duration of the tournament, following strict health and safety protocols to guard against the spread of the coronavirus.

It hit some rough patches, including “positive scares,” but the league was able to survive them and finish the All-Filipino tournament.

But since the PBA only had one conference instead of the traditional three last season, the league deemed it fit to not hand out a most valuable player award. In its place is the PBA Best Player of the Conference honor.

For the top individual award, six players are in the running, namely Stanley Pringle of champion Barangay Ginebra, Ray Parks Jr. and Roger Pogoy of runners-up TNT Tropang Giga, Matthew Wright and Calvin Abueva of the Phoenix Super LPG Fuel Masters, and league top-scorer CJ Perez of the Terrafirma Dyip.

Mr. Parks leads in the statistical points (SPs), a key criterion in determining the winner, with 38.2 SPs on the strength of solid averages of 22.5 points, 8.1 rebounds, 3.1 assists, and 1.3 steals per game throughout the tournament.

Mr. Abueva (37.1) is second with Mr. Perez (35.7) at third. Mr. Wright (35.65) is at fourth, while Mr. Pogoy is fifth (35.64).

While not in the top five in SPs, Mr. Pringle (34.8) got a boost after helping lead the Kings to the title.

Factoring as well in determining the winner are the votes from the media, players and the PBA office. Voting began on Jan. 5 and will last until Jan. 11.

Like the MVP award, no Rookie of the Year will be given. Instead, the Outstanding Rookie award is up for grabs.

Vying for Outstanding Rookie are Barangay Ginebra’s Arvin Tolentino, Aaron Black of the Meralco Bolts, Terrafirma’s Roosevelt Adams, Barkley Ebona of the Alaska Aces, and Magnolia Hotshots Pambansang Manok’s Aris Dionisio.

For the Most Improved Player, in contention are Phoenix’s Justine Chua and Jason Perkins, Barangay Ginebra’s Prince Caperal, Rain or Shine’s Javee Mocon, Raul Soyud of NLEX, and Meralco-veteran Reynel Hugnatan.

Meanwhile, in consideration for for the Samboy Lim Sportsmanship Award are Messrs. Abueva and Perez, Barangay Ginebra’s Scottie Thompson, Kevin Alas of NLEX, and Rain or Shine’s Gabe Norwood.

An Outstanding/Elite Five, temporarily replacing the Mythical Five selection, will also be handed out, but there will be no Mythical Second Team and All-Defensive Teams awards to be given.

No Zlatan, no problem as Milan rated Europe’s most improved team

EVEN with Zlatan Ibrahimović sidelined through injury, AC Milan have maintained their early season form and improved more than any other team in Europe in the last year, according to the Euro Club Index football ranking from Nielsen’s Gracenote.

The Serie A leaders and only unbeaten side in Europe’s top five leagues — England, Spain, Germany, Italy and France — face champions Juventus on Wednesday as they look to lay down a marker in their quest for a 19th Scudetto, and their first in a decade.

According to Gracenote’s data, Milan is the only team to have increased their Euro Club Index by more than 500 points in the last year. The seven-time European champions’ improvement means they have climbed from being the 47th-best team in Europe a year ago to number 20.

Norwegian champions Bodø/Glimt are the second-most improved team in Europe, while Champions League winners Bayern Munich improved the third most to move from fourth place overall to first.

Simon Gleave, head of sport analysis at Gracenote, said: “The Euro Club Index is an objective ranking of European football clubs, which informs us which teams are the best, which are the most improved or falling fastest, and a whole host of other things without bias.

“AC Milan, Bodø/Glimt, and Bayern Munich’s results over the last year make them the most improved teams in Europe.”

ZLATAN ABSENCE NO ISSUE
Many have questioned whether 39-year-old Ibrahimović could still produce the goods in the far reaches of his career, but his goals have been pivotal to Milan’s impressive start to their delayed campaign.

The evergreen Swede’s two goals earned Milan a dramatic 2-1 win over rivals Inter Milan in mid-October, and he scored a late winner at Udinese two weeks later.

His late equaliser preserved Milan’s unbeaten start against Verona seven days after that, while two more of his strikes helped Milan to a 3-1 win at title rivals Napoli on Nov. 22.

However, Ibrahimović has since been missing with a thigh injury, and without his contribution, many expected the wheels to come off for Milan. But in recent weeks, several other players have stepped up in his place.

In all, four of the side’s players have scored four or more goals in Serie A this season — Ibrahimović, Theo Hernández, Rafael Leão and Franck Kessié — a joint-record among the top five European Leagues in the current season.

Five league wins and two draws in the absence of Ibrahimović leave Milan top of the standings, one point ahead of Inter and 10 clear of Juventus in fifth ahead of Wednesday’s match. — Reuters

Olympic hopeful Nesthy Petecio rues lost time to train

WITH her push to book a spot in the rescheduled Olympic Games in Tokyo greatly affected by the coronavirus pandemic, national boxing team member Nesthy Petecio laments the lost opportunity, but vows to make up for it as she gears up to resume full training and preparation.

One of the country’s top bets in the sport, Ms. Petecio, 28, had a chance to qualify outright for the Games last March in the Asian qualifiers in Jordan but fell short after bowing out in the quarterfinals.

Despite that, she is still determined to make it to Tokyo, looking to do well in the final world Olympic qualifier in Paris in June.

Ms. Petecio, however, admitted that the long pandemic-forced break from training by the national team has made her push tougher.

“Had our training continued last year, it would have been a big help. Unfortunately, our training stopped for months. I went six months, I think, without [the ideal] training [needed],” said Ms. Petecio in Filipino on The Chasedown television program last Saturday.

She went on to say that she managed to train with her teammates and coaches virtually, and later on got to put in some individual work in a community gym in her hometown of Digos, Davao Del Sur, but Ms. Petecio said nothing beats a sustained face-to-face training with the entire team.

It is something she intends to take full advantage of in the scheduled “bubble” training they will be having at the INSPIRE Sports Academy in Calamba, Laguna, set to begin this weekend.

The bubble is geared towards helping the boxing, taekwondo, and karate teams get back in the swing of training as they make a late push to qualify for the Olympics in July.

The teams will be holed up in the facility in a controlled environment, under strict health and safety protocols to guard against the spread of the coronavirus.

“I’m excited to get back to training in the bubble. Immediate concern is to shed the pounds I gained in the past months and be back in game shape,” said the featherweight fighter.

“I don’t see any problem going back to training. I’m ready to put in the work and my coaches know that. I really want to get a slot in the Olympics. So if I have to triple work to achieve it, I will do that,” she added.

Prior to having it tough in 2020, Ms. Petecio had a banner 2019, winning gold medals in the AIBA Women’s World Boxing Championships and Southeast Asian Games.

Filipino athletes who have qualified so far for the Tokyo Games are boxers Eumir Felix Marcial and Irish Magno, pole-vaulter EJ Obiena, and gymnast Caloy Yulo.

Local sports officials are targeting to send at least 15 athletes for this year’s Olympics. — Michael Angelo S. Murillo

Sports tourism movers and shakers honored recently

DESPITE activities and various affairs rendered limited by the coronavirus, organizers of the Philippine Sports Tourism Awards (PSTA) still got to stage the fourth edition of the event, honoring movers and shakers of the industry.

Recently held at Clark Freeport Zone in Pampanga, the PSTA, organized by Selrahco Management and Consultancy Services, honored various organizations and personalities for their contribution to the sports tourism sector for the year 2019.

Leading the awardees were Metro Pacific Investments Corp. Chairman Manuel V. Pangilinan and Dumaguete City Mayor Felipe Remollo, who were named the year’s top sports tourism personalities in the private and government sectors, respectively.

Other winners were People’s Television Network (news coverage), Philippine Airlines (air carrier), Run With Me of Resorts World Manila (charity event), Coca-Cola Beverages Philippines (event sponsorship), The Mansion Boutique Hotel and Villas (hotel), Triathlon Association of the Philippines (sports association), Tinman Ilocos Norte (domestic event), Ironman 70.3 (international event), and Sunrise Events, Inc. (private organizer).

Also part of the winner’s circle in the government sector were Dumaguete City (event organizer), Subic Bay Metropolitan Authority (destination marketing), Clark Development Corp. (top destination), and New Clark City (sports venue).

PSTA chairman and founder Charles Lim said in a release that while they could have opted to postpone the handing out of the awards, they deemed it important to show that notwithstanding the challenges that 2020 presented with the pandemic, there is still hope for a bounce back for the sector and that events can be successfully staged provided the proper protocols are followed.

“This event happening in Clark shows we have gone an extra mile to practice safety protocols. PSTA could not just let the year pass without recognizing the efforts of athletes, event organizers, local governments, tourism officials, and private individuals who have made 2019 a bumper year for sports and tourism,” he said.

Mr. Lim went on to say that it was also fitting that the event happened in Clark, which is one of the places in the country proving resilient and conducive for sports tourism amid the pandemic.

Citing the Philippine Basketball Association, which successfully held its tournament bubble in the area last year, Mr. Lim said it shows what the area offers and bodes well for the sports tourism sector.

“These trailblazing initiatives, which promote health and safety in an unprecedented time, are a good sign to where the sports tourism sector is headed this 2021.”

First held in 2016, the PSTA is jointly organized by stakeholders both from the government and private sector and designed to recognize events, destinations, local government units, national sports association, private companies and event organizers that have contributed to the growth of the local sports tourism industry.

It is also geared towards inspiring local players to further step up their game in pushing the Philippines as a top sports tourism destination in the world.

The latest PSTA was supported by Clark Development Corp. (CDC), the City of Mabalacat, Smart Communications, Universal Robina Corp., and Coca-Cola Beverages Philippines, Inc. — Michael Angelo S. Murillo

A Tokyo emergency will be a bad omen for the world’s 2021

THERE’S MORE at stake in Tokyo’s prospective emergency measures to contain the coronavirus than the fate of the metropolis’s great bars and restaurants. Bullish scenarios for a muscular global economic rebound may have to be reassessed.

The International Monetary Fund has penciled in world growth of 5.2%, and a 6.9% boost for Asia. Morgan Stanley predicted a global gain of 6.4%. But Japan may be heading for a renewed contraction after Prime Minister Yoshihide Suga said Tuesday he’s considering declaring a state of emergency in the capital and surrounding districts. The steps may slice 0.7% from gross domestic product each month they are in force, according to Bloomberg Economics.

It’s not a leap to see Japan return to recession. Growth lost altitude toward the end of last year; retail sales plummeted in November and Tokyo consumer prices slid the most in a decade.   

The dour start to 2021 in the world’s third-largest economy jars with the rosy projections for a global expansion that began to proliferate late last year. What happens in Japan matters to the rest of the world. Tokyo and its surrounding prefectures would almost qualify for Group of Eight membership if they were a country. While China is the main game in Asia, Japan isn’t too far behind. The country remains a big exporter and an important source of foreign investment to the rest of the world. Global economic trends tend to start in the country — from population decline to property busts, from too-low inflation to quantitative easing.

As renewed lockdowns and climbing coronavirus infections greet the new year, how Japan emerges from the pandemic will be a lesson — or omen — for the rest of the world’s leading economies.

Suga’s likely emergency declaration probably won’t be draconian. There’s little he can do without cooperation from provincial officials, a product of constraints in Japan’s political system that can be traced to reconstruction from World War II. Suga can’t clear the streets, for example, as some of his counterparts in the UK, France, and Southeast Asia can. Restaurants are likely to be asked to close early, and work-from-home further encouraged. Governors will have more authority to request that folks and firms go along with stricter curbs, but they will still have very little power to enforce them, Scott Seaman, Asia director at Eurasia Group, said in a note.    

This doesn’t mean the prime minister’s move will lack potency. It will provide important cues for a citizenry that tends to value social cohesion and prioritize the interests of the community over those of the individual. One of the first things that hit me in Japan during a two-year assignment around the turn of the century was how common it was for people to wear masks if they had a sniffle. In this, too, Japan was ahead of the pack.

For all Japan’s fiscal and monetary firepower, Suga hasn’t caught a break since he succeeded Shinzo Abe in September. He’s been a captive of events, and lacks his own electoral mandate. The parliament’s five-year term ends in October, and the popularity of the Liberal Democratic Party government is sagging. In theory, getting to grips with COVID would strengthen Suga — both within the LDP and at the ballot box. But such is Suga’s poor hand that a jump in infections might be an ally as much as a foe. Until COVID-19 appears to be contained, no leader is going to look good. What internal LDP contender would want the job now anyway? As well as getting the blame, whoever sits in the corner office can’t really get out in the country to test campaign themes until the disease abates.

It’s not only Suga who is stuck. Haruhiko Kuroda, governor of the Bank of Japan (BoJ), is casting about for new ideas on monetary policy. In December, Kuroda said the BoJ would undertake an assessment of its policies, which have been focused on controlling the yield on 10-year government bonds, and keeping the benchmark interest-rate negative. Curiously, he sounds like he wants to keep both. So what’s the review all about? The BoJ probably wants to widen the scope of yield fluctuations around the level of zero. But you don’t need a three-month review to accomplish that. It’s possible Kuroda had in mind a formula that might eventually establish conditions under which exit from mega-easy money might occur, or equally, allow him to go the other way and deepen his commitment to stimulus. The way bad news is piling up, greater easing looks the most appropriate route.

It’s a very unhappy new year for Japan’s political and economic leaders — and maybe for the rest of us. 

BLOOMBERG OPINION

Training for the jobs of the future

As we start 2021, COVID-19 is still with us, along with the many changes it has prompted in the way we do things. Many parents are still doing work from home, as children also do school from home. Public transportation is still limited, and people are still encouraged to just stay home unless in need of essential goods or services. Many places and business have remained closed.

The focus now is on the acquisition of COVID-19 vaccines, with the national government as well as numerous local governments all looking for ways and means to bring them in. But given financial and logistical concerns, at best, a semblance of a mass vaccination program will probably start only towards the end of the year.

Meantime, life goes on for many of us.

What the future holds, nobody really knows. But, judging from what has occurred so far, and the possibility of other pandemics in the future, it is interesting how some analysts now view the future of work. I came across recently a blog published by the International Monetary Fund, which highlighted the “The Jobs of Tomorrow” report by the World Economic Forum (WEF).

Presented by Saadia Zahidi, managing director at WEF and head of its Center for the New Economy and Society, the report discussed what jobs will emerge and which ones will go in the future, in light of the “effect of pandemic-related disruptions placed in the broader context of longer-term technology trends.”

The report “maps the jobs and skills of the future, tracking the pace of change based on surveys of business leaders and human resource strategists from around the world.” Its five key findings for its Winter 2020 report were as follows:

• The workforce is automating faster than expected, displacing 85 million jobs in the next five years.

• The robot revolution will create 97 million new jobs.

• In 2025, analytical thinking, creativity, and flexibility will be among the most sought-after skills.

• The most competitive businesses will focus on upgrading their workers’ skills.

• Remote work is here to stay.

The report forecasts increasing demand for data analysts and scientists, AI (artificial intelligence) and machine learning specialists, big data specialists, digital marketing and strategy specialists, and process automation specialists. Decreasing demand is seen for data entry clerks, administrative and executive secretaries, accounting and bookkeeping and payroll clerks, accountants and auditors, and assembly and factory workers.

“Automation, in tandem with the COVID-19 recession, is creating a ‘double-disruption’ scenario for workers. Companies’ adoption of technology will transform tasks, jobs, and skills by 2025… Five years from now, employers will divide work between humans and machines roughly equally,” the report says. It notes that businesses are set to reduce their workforce because of technology integration and expand their use of contractors for task-specialized work.

The WEF report also says “new roles will emerge across the care economy in technology fields and in content creation careers. The emerging professions reflect the greater demand for green economy jobs; roles at the forefront of the data and AI economy; and new roles in engineering, cloud computing, and product development.”

It adds, “The up-and-coming jobs highlight the continuing importance of human interaction in the new economy through roles in the care economy; in marketing, sales, and content production; and in roles that depend on the ability to work with different types of people from different backgrounds.”

Of course, one can only wonder whether these forecasts will actually come through. After all, COVID-19 has taught us that the world can suddenly change, practically overnight. And there is no telling if another pandemic, or similar world-changing event, will hit us again in the next few years. However, there are signs that changes to the workforce are inevitable.

Based on WEF’s survey of businesses, an overwhelming majority says they are “set to rapidly digitalize work processes, including a significant expansion of remote working,” and that there is “potential to move 44% of their workforce to operate remotely.”

But most businesses are also bracing for negative impact on worker productivity, and will thus help workers adapt.

WEF also says the “relative importance of skills sets is evolving,” and that employers are seen to favor or prioritize critical thinking and analysis, problem-solving, self-management, and technology use and development over physical abilities, core literacies, and management and communication of activities.

WEF also notes that even in past surveys, employers already noted the “growing importance” of critical thinking, analysis, and problem solving. But now, they also see the significance of “self-management, active learning, resilience, stress tolerance, and flexibility.” Ever-changing and dynamic business conditions are obviously driving these changes in skills sets.

What is crucial, moving forward, is how businesses and perhaps the government can help people adapt to these changes and capably address the needs and demands of the times. As WEF notes, businesses must invest in upgrading their people’s skills if they wish to remain competitive. The report notes that “for workers set to remain in their roles over the next five years, nearly half will need retraining for their core skills.”

“The public sector [also] needs to provide stronger support for reskilling and upskilling of at-risk or displaced workers… [It] must provide incentives for investment in the markets and jobs of tomorrow, offer stronger safety nets for displaced workers during job transitions, and tackle long-delayed improvements of education and training systems,” WEF adds.

This, I believe, is something that policymakers should start looking into urgently. What we have programmed thus far may not be enough. While we can pour more public money into reskilling, perhaps it will be more practical for the state to instead incentivize businesses to invest in reskilling their people, and to put more capital into the education and training of people for the jobs of tomorrow.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council

matort@yahoo.com

1...7,0707,0717,072...12,670Page 7,071 of 12,670
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube