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IPOPHL wants malls, online shops liable for counterfeit goods sold

THE Intellectual Property Office of the Philippines (IPOPHL) is proposing legislation that will hold online platforms and malls responsible for the sale of counterfeit goods, IPOPHL Director-General Josephine R. Santiago said at a press briefing on Wednesday.

IPOPHL has submitted proposed revisions to the Intellectual Property Code that includes third-party liability to the Senate committee on trade. They have also had discussions with the committee on trade at the House of Representatives.

Under the proposed law, mall landlord-leasee liability will extend to trademarks. Previous versions of the Intellectual Property Code only cover copyright.

Copyright covers creative work including literature, art, and dissertations. Trademark protects brands, logos, and slogans.

“Those that you see in terms of articles of footwear, bags, and all you see in malls — that will already be hit by the bill,” Ms. Santiago said.

Penalties for malls would increase to between P50,000 to P150,000 for the first offense, and up to P1 million in succeeding offenses.

Penalties for violations that pertain to public health and safety would be increased further.

IPOPHL is also proposing that e-commerce sites found complicit will be shut down. They also plan to disrupt payment gateways, participating in a “project chargeback” strategy that returns funds to consumers.

“The good thing with popular [online] platforms, they work with government trying to self-police the products, the sellers that are going through their platforms,” Trade Secretary Ramon M. Lopez said.

He noted that Department of Trade and Industry’s consumer protection group has already received between 300 to 400 consumer complaints about e-commerce platforms.

Ms. Santiago said that the revised Intellectual Property Code includes between 10 and 20% of substantive changes from the previously submitted code.

The National Committee on Intellectual Property Rights (NCIPR) on Wednesday held its high-level meeting with member agencies to discuss the implementation of its 2019-2022 Action Plan. — Jenina P. Ibañez

Europe’s funds are hunkering down in bonds for coming recession

WOEFUL. Bad. Shocking. That’s how investors and strategists described Europe’s latest economic data, leaving them fearing the worst and betting this year’s record bond rally has further to run.

The prospect of an oncoming recession has some of the region’s biggest fund managers seeking safety by ratcheting up positions in Europe’s debt, including negative-yielding German securities. Yields look to be heading back down toward historic lows, despite the best efforts of the European Central Bank to stave off a contraction.

“Dipping in and out of recession could become the norm in Europe,” said Luke Hickmore, a money manager at Aberdeen Standard Investments, who has boosted the duration of his portfolios. “I think Germany is in a recession now but for the whole of Europe I would put the probability at close to 60% over 2020.”

This year’s surge in European bonds stalled before the latest round of economic data this week. Now the rally is back on, as manufacturing in the region’s largest economy faces its worst slump since the financial crisis. That renews fears Europe is going the way of Japan — a world of permanently low growth, inflation and bond yields.

The drop in the euro-area’s Purchasing Managers’ Index for services to an eight-month low of 52 in September was “a shocking set of numbers” for Robeco Institutional Asset Management’s Martin van Vliet. Any further fall to below 50, the dividing line between expansion and contraction, will be key to whether German yields slide even lower, according to Mediolanum SpA money manager Charles Diebel.

“The data is BAD,” Diebel said in a written response to questions, putting the chance of a recession in the euro area at 50% over the next 18 months. “We’re still looking for bull mode to be sustained in general.”

Further signs of weakening sentiment came Tuesday, with business expectations this month in Germany falling to the lowest in a decade. The mood among factory executives was the main reason, with the Ifo institute, which compiles the sentiment report, saying the only direction was “downward.”

Indeed, the Citi Economic Surprise Index, a gauge of whether economic data beats or falls short of analyst expectations, plunged to its lowest level since February this week, adding fuel to the market rally. ADM Investor Services global strategist Marc Ostwald described the latest manufacturing figures as “woeful.” Next in focus will be regional economic confidence data on Friday.

German 10-year yields dropped to -0.62% Wednesday, having touched an all-time low of -0.74% earlier this month. Those in Italian, Spanish and French debt have also fallen this week. Euro-denominated investment grade bonds have returned investors 8.5% this year.

NEW LOWS
Amundi Asset Management, Europe’s biggest fund manager, thinks now is not the time to dip toes back into global bonds, as markets are pricing in too much monetary easing, according to Pascal Blanque, its group chief investment officer. It has cut exposure to long-dated U.S. Treasuries.

Still, while the jury is out on further Federal Reserve rate cuts, support for bond gains in Europe is set to come from the ECB’s fresh package of quantitative easing, starting in November at a pace of 20 billion euros ($22 billion) per month. ABN Amro Bank NV expects an increase in the pace of net asset purchases as well as another cut in its deposit rate.

The institution’s new tiering measure to ease the profit-squeeze on banks may allow it to cut rates deeper into negative territory in the future, despite some confusion in the short-term.

ECB President Mario Draghi has called on governments to help out to boost growth, though there are no imminent signs Germany will heed the call as it sticks to strict fiscal limits. Even the prospect of bigger budget spending is unlikely to turn the tide in rates, according to ING Groep NV, which recommended investors buy German debt.

“Economic weakness and a new round of stimulus suggest that long rates and government bond yields will see a new leg down and will eventually surpass previous record lows,” said ABN strategists Aline Schuiling and Nick Kounis. — Bloomberg

Southeast Asian nations weigh unified approach to regulating Big Tech firms

BANGKOK/JAKARTA — Southeast Asian governments are banding together to take on global tech giants on issues including “fake news” and taxation, marking a new stage in the region’s approach to the internet’s explosive growth.

The stakes are high both for the governments, which are counting on the digital economy to drive growth and innovation amid domestic political tensions, and the companies, which view Southeast Asia’s social-media-loving population of 641 million as a key growth market.

The new initiatives, which have not previously been reported, include an effort by Indonesia to join forces with Thailand, Vietnam and the Philippines in demanding action from Google, Facebook and other companies on content regulation and tax policy.

“Together, we are 80 percent of the region,” Indonesian communications minister Rudiantara told Reuters. Indonesia is already preparing legislation requiring tech companies with online services to pay value-added tax on local sales, even when they are booked offshore.

Meanwhile, Thailand’s telecom regulator, in a late-August meeting with regional counterparts, proposed that all 10 members of the Association of Southeast Asian Nations (ASEAN) require internet and streaming video firms to set up domestic “verification centers” to combat fake news.

Thailand also urged discussion of how to demand “economic contributions” from the internet firms, whether through taxes or fees, according to a copy of a speech seen by Reuters.

The council of ASEAN telecoms regulators has accepted Thailand’s proposal for the centers, and a separate document with guidelines for economic contribution is expected to be formally adopted at the November ASEAN summit, a source in the Thai regulatory agency with knowledge of the talks told Reuters.

“ASEAN as a group gives us enough leverage, and our combined user base on services like Facebook is big enough to lend us negotiating power,” the source said.

The initiatives reflect widespread concern that Internet services, to which most people in the region have gained access only in the past few years, are fanning ethnic and religious animosities while avoiding paying their fair share.

Activist groups are nervous about the potential for institutionalized censorship. According to Freedom House’s 2018 Net Freedom survey, all Southeast Asian countries rank as either not free or partly free.

Emilie Pradichit, director of Thailand-based Manushya Foundation, which advocates for online rights, told Reuters governments in the region could use the label “fake news” to target dissidents. She called on companies to resist such attempts.

“We believe the governments should themselves not use untrue information to achieve goals that are to their advantage, and private sector organizations, such as Facebook, should take the lead in protecting netizens’ online freedom,” Pradichit told Reuters.

The Asia Internet Coalition, which counts internet giants Facebook, Google, Amazon, Twitter and messaging app Line among its members, said ASEAN risks hurting the digital economy unless the new policies are “right.”

“The potential of the region’s digital economy … will likely be blunted by overregulation or indiscriminate taxes and fees,” AIC director Jeff Paine told Reuters, urging governments to focus on “industry partnerships and collaborations.”

CONSENSUS DISPUTED
It is not yet clear what level of support the new proposals enjoy and how they might be implemented in coming months.

Indonesia’s plan follows its successful effort to get Alphabet Inc’s Google to pay taxes on Indonesia-related advertising revenue booked at its Asia headquarters in Singapore.

“Other countries asked me how we were able to achieve that, so I offered to them that they piggyback off Indonesia to deal with the platforms,” Rudiantara said. He said he also persuaded social media giants Telegram and Tik-Tok to establish content monitoring teams in Indonesia.

Rudiantara is now planning a “three letter system” in which if a platform fails to respond to three government requests to engage on an issue, he’ll ban them. The proposal to neighboring countries includes a shared channel to communicate with the companies.

The Thai regulator wants to require internet companies to set up and fund “verification centers” in each Southeast Asian country.

Singapore has already passed a complex “fake news” law requiring internet companies to label or remove content deemed untrue.

The Thai proposal aims to ensure that companies take quick action on fake news and fake accounts. Facebook, Twitter and Google’s YouTube all have elaborate policies on what is allowed on their platforms and generally ban fake accounts, deceptive practices and hate speech. Content that is simply false, however, is usually allowed.

“They said they already have a fast process to tackle issues, but we insisted it’s still too slow,” said Takorn Tantasith, secretary general of Thailand’s National Broadcasting and Telecommunications Commission.

Officials in Cambodia, Indonesia, and the Philippines told Reuters they support the verification center plan, saying fake news was a core national concern.

Philippines communications technology undersecretary Eliseo Rio said the country’s authorities are also working on a “one-stop” content reviewing mechanism, where if one country decided it is disinformation, the company would remove it altogether and not just block it locally.

“The individual governments can conclude these are fake,” he added.

Rights watchdogs have warned that media freedom is declining in the Philippines, with several officials accused of propagating disinformation campaigns against opponents.

Sources familiar with the regulators’ proceedings, however, said support for the verification centers was not unanimous across Asia.

Three executives at targeted companies said they didn’t believe the idea would work, in part because it includes a wide range of global companies.

Facebook, Line Corp., Amazon, Netflix and Walt Disney were among those that attended a meeting in August with regulators to discuss the proposal.

Google and Netflix declined to comment, while Amazon, Facebook, Line and Walt Disney did not immediately respond to requests for comment.

Both Singapore and Indonesia already plan to impose GST taxes on foreign companies offering digital services, and talks are ongoing among Southeast Asian regulators for a region-wide effort. That topic was also discussed in the industry meeting. — Reuters

PSE to buy P200M worth of SCCP shares

THE Philippine Stock Exchange, Inc. (PSE) will buy P200 million worth of shares in one of its units to finance the acquisition of a new clearing and settlement system.

In a disclosure on Wednesday, the bourse operator said its board of directors has approved its subscription to two million shares in its wholly owned subsidiary Securities Clearing Corporation of the Philippines (SCCP) priced at P100 each.

“The additional investment will be used by SCCP to partially fund its new clearing and settlement system,” the PSE said.

“The new clearing and settlement system of the SCCP will ensure a smoother and more efficient clearing and settlement process.”

SCCP acts as the central securities clearing institution in the country, managing and supporting the clearance of trades in securities at the PSE and other official securities markets.

The payment will be made in cash, depending on SCCP’s funding requirements.

The PSE also said it will settle its outstanding subscription in SCCP worth P50 million.

SCCP’s board of directors approved the issuance of the shares to PSE last week. — Arra B. Francia

Dining Out (09/26/19)

Chocolate mooncakes

CITY OF DREAMS Manila celebrates the Mid-Autumn festival with uniquely handcrafted chocolate mooncakes this September at The Garage’s Chocol8. The mooncakes, stamped with City of Dreams Manila’s logo, are made from pure chocolate, consisting of exclusively blended Swiss dark chocolate fashioned in a mould resembling the traditional mooncake’s pastry skin, which are then filled with different flavors of ganache that mirror the yolk of a salted egg. The varieties are: Lemon-Caramel, which is composed of lemon ganache complemented by caramel ganache; Orange-Almond, which melds orange ganache, caramelized roasted almonds, and almond ganache; and Mango-Pistachio, which harmoniously blends mango ganache, caramelized pistachios, and pistachio ganache. The mooncakes come in a two-color toned box for P780 net per box. For inquiries, call 800-8080 or e-mail guestservices@cod-manila.com or visit www.cityofdreamsmanila.com.

Promo on hold

AFTER THE “overwhelming response” to McDonald’s McDelivery Moon Coupon promo last Friday caused “technical difficulties,” the fast food giant is postponing its next Moon Coupon releases which were originally scheduled on Sept. 24 and 29. The McDelivery’s Moon Coupons were meant to give customers discounts based on the moon’s phases through the McDo App,

P28 beer at Dencio’s

DENCIO’S continues its 28th anniversary celebration this September with a special deal: for one night only, on Sept. 27, get an ice-cold bottle of San Mig Light for only P28.

Marriott’s anniversary deals

THE Marriott Manila turns 10 in October and will be offering special promos to mark the occasion. The Manila Life Café and Greatroom will offer P10 food picks. Manila Life Café will offer a Street Food Platter sampler (kwek-kwek, fish ball and chicken fritters) for P10, while the Greatroom will serve Limited Signature Tapas at P10 each (minimum of 10 orders). Meanwhile, the Greatroom and Still will hold happy hours that start at 10 p.m. featuring everything from hand crafted concoctions to premium whiskeys. The Marriott Café will celebrate Throwback Thursdays, offering its hefty buffet on all Thursdays of October at the same price from 10 years ago (lunch from noon to 2:30 p.m. for P1,350 nett, and dinner from 6-10:30 p.m. for 1,500 nett). Meanwhile, a minimum spend of P10,000 when dining at Cru Steakhouse will come with a bottle of wine, on the house.

Beer fest at RWM

AS PART of its 10th anniversary celebrations, Resorts World Manila (RWM) will features over 30 craft beer brewers from the Philippine Craft Beer Community (PCBC) in its October Fiesta. The celebration will be on Oct. 4 and 5, 4 p.m. to midnight, at the 2/F Retail Area of the Newport Mall. Guests may choose from a selection of over 30 craft beers during the two-day event which they can “mix and match” them with signature RWM pulutans (bar chow) including Franks’ Pinoy Hotdogs, Franks’ Sisig Wrap, RWM Fiesta Ham, and Bolahan’s selection of tusok-tusok favorites. There will also be musical entertainment with featured artists including Paolo Santos, Migz Haleco, Davey Langit, New Maincast, and Julius on Oct. 4; and Hans Dimayuga, Tiara Shaye, Juno, and Hello Ceasar on Oct. 5. The door charge for October Fiesta is P1,000 inclusive of five RWM pulutan, three local craft beer servings, and one raffle coupon. Meanwhile for P400, guests may enjoy two local craft beers samples, and one souvenir pilsner glass. Visit www.rwmanila.com for details.

Fear of retirement poverty drives Japanese to private pensions

JAPANESE households are rushing to private retirement products after a government report fueled fears that the national pension system won’t be enough to support them during old age.

SBI Securities Co. and Monex Group Inc. have seen applications for defined contribution pension plans surge since the report was released in early June. The document, published on the Financial Services Agency’s website, sparked angst after showing that a couple in their sixties may need as much as 20 million yen ($186,000) on top of their public pension to cover living expenses.

Governments around the world are grappling with how to sustain retirement systems as their populations age and interest rates plummet. The problem is most acute in Japan, where people live longer than almost anywhere else and remain averse to investing more of their $17 trillion of financial assets, despite earning virtually zero interest in bank accounts.

Now, nervousness over the future of the pension system is prompting some to finally take action, providing an unexpected boon to local securities firms.

“The 20 million yen issue is a tailwind for us,” said Ryugo Hashimoto, who heads the investment trust and fixed-income department at SBI Securities. “The era of 100-year lifespans is approaching, and so people are becoming aware that they may have a retirement savings shortfall that they need to prepare for.”

Tomoko Minegishi, a 47-year-old school teacher’s aide, is among people who are considering an individual-type defined contribution pension plan known as iDeCo.

“I’m concerned whether our public pension benefits will be sufficient,” Ms. Minegishi said. “I don’t think my salary will rise much, so I want to save on taxes” through iDeCo, she said.

Similar to 401(k) plans in the U.S., under iDeCo people pay a fixed amount each month to make long-term investments in financial products such as funds that buy stocks and bonds. Contributions are tax deductible.

The number of applications for iDeCo accounts at SBI and Monex increased about 50% in June and July from May, according to the two online brokerages. Overall, new enrollments rose 8.5% from a year earlier to 36,778 people in July, data from the National Pension Fund Association show.

Applications for a small-lot, tax-free investment program called the installment-type Nippon Individual Savings Account also increased in June and July from May, SBI and Monex said.

Japanese workers are among the worst prepared for rising life expectancy because of their tendency to hoard cash savings rather than invest, a World Economic Forum report showed in June. Households in Japan have 53% of their financial assets in cash and deposits, compared with 13% in the U.S. and 34% in the euro area, Bank of Japan data show.

MONEY IN THE BANK
One key to sustaining the recent spate of investment is boosting financial literacy, according to Hiroaki Muto, chief economist at Tokai Tokyo Research Institute Co. in Tokyo. Japan hasn’t provided enough financial education programs at schools, and people remain deterred from investing after the nation’s asset-price bubble burst in the early 1990s, he said.

“There’s a myth that savings are the safest and stocks are seen as gambling,” Ms. Muto said.

To avoid a tough retirement, more people like Minegishi may find that it’s a punt worth taking.

“To supplement my pension, I think I’ll have to work as long as I can,” she said. “I’m worried if we’ll be OK.” — Bloomberg

How PSEi member stocks performed — September 25, 2019

Here’s a quick glance at how PSEi stocks fared on Wednesday, September 25, 2019.

 

NEDA sees cabinet decision this month on NAIA rehab, Panglao

ECONOMIC planners are expecting a cabinet committee decision by the end of the month on the Ninoy Aquino International Airport (NAIA) rehabilitation project and the Panglao, Bohol International Airport privatization.

The National Economic and Development Authority (NEDA) said in a statement Wednesday that the NAIA rehabilitation and the unsolicited proposal for the new Panglao, Bohol International Airport will be up for cabinet committee action in the last week of September after hurdling a review by NEDA’s Investment Coordination Committee (ICC) Technical Board (TB).

A total of 20 unsolicited proposals have been submitted to NEDA’s ICC as of Sept. 20. Meanwhile the NEDA Board has approved one public-private partnership (PPP), the unsolicited build-operate-transfer Bulacan International Airport.

The Department of Transportation (DoTr) recently awarded the P734-billion Bulacan airport project to proponent San Miguel Holdings Corp., and the company could start construction of the gateway by December.

NEDA added that 10 proposals have been presented to the ICC-TB and approval is awaiting compliance with various requirements.

Those awaiting further review by the ICC-Technical Working Group are the unsolicited proposal for the Davao People Mover Project and the unsolicited proposal for the C5 MRT 10 Project, both under the DoTr.

Other projects are the unsolicited Build-Transfer-Operate proposal for the Fort Bonifacio-Makati Sky Train Project, the unsolicited Build-Operate-Transfer proposal for the 50-Year Integrated Development Plan for the Mactan-Cebu International Airport (MCIAA) and the unsolicited proposal for an IT project for the City of Naga, Cebu known as UNLAD BAYAN Local Government Information.

Those with pending compliance requirements at the ICC-TB level are the unsolicited Operate-Add-Transfer proposal for Laguindingan Airport, the unsolicited OAT Proposal for the Davao International Airport, the unsolicited Operate-Maintain-Upgrade-Transfer Proposal for the Operation and Maintenance and Facility Upgrade of Kalibo International Airport, the unsolicited proposal for the Light Rail Transit (LRT) 6 Cavite Line A Project, and the unsolicited proposal for the MRT-11 Project.

“The remaining seven project proposals are still under ICC secretariat evaluation and undergoing refinements based on technical discussions with ICC member agencies,” according to NEDA.

“We view these unsolicited proposals as an indication of private sector confidence in the Philippine economy. NEDA is doing its best to efficiently and speedily process these, allowing the private sector to innovate, while keeping in mind the public’s interest over the medium and long term,” Economic Planning Secretary Ernesto M. Pernia was quoted as saying. — Beatrice M. Laforga

House approves extra year of 2019 budget validity

THE House of Representatives, sitting as a plenary body, approved on second reading Wednesday a resolution extending the validity of the 2019 budget until December 2020.

House Joint Resolution No. 19, which consolidates House Joint Resolution No. 9 by Antique Rep. Loren Legarda and House Joint Resolution No. 10 by San Juan City Rep. Ronaldo B. Zamora and Davao Oriental 2nd district Rep. Joel Mayo Z. Almario, was approved also on Wednesday morning by the Appropriations Committee.

House Appropriations committee chairperson Isidro T. Ungab, representing Davao City’s third district, said the extension of the validity of 2019 budget will permit the full utilization of the appropriations.

“First, We will give more time for agencies to implement… second, Inabot tayo ng election ban (the election ban hindered spending)… So i-extend natin up to the end of 2020. (The solution is to extend validity the end of 2020),” Mr. Ungab said in chance remarks to BusinessWorld.

The budget passage was delayed by nearly four months, and when President Rodrigo R. Duterte signed the spending plan in April he vetoed about P95.3 billion in public works items.

The 2019 budget was the first use-it-or-lose-it spending plan passed under new “cash-based” budgeting rules, which gave agencies only a year to disburse the appropriations in order to ensure that funds were spent quickly. The budget languished in Congress past the turn of the new year, causing the government to miss the dry-season construction window for key infrastructure projects, which was cited as a drag on economic growth in the second quarter.

The passage of the 2019 budget was also delayed by wrangling between the two chambers about “insertions” allegedly made after the document’s finalization by virtue of bicameral approval. Many of the insertions fell foul of the presidential veto.

Mr. Ungab added that the House is also studying ways to make the second year of the cash-based budgeting rules more flexible.

“Pinagaaralan natin ng husto, yung 2019 kasi may birth pains yung start ng cash-based budgeting. (We have studied intensively the 2019 budget, which marked the start of cash-based budgeting) Kaya bigyan natin ng more leeway. So itong sa 2020, hopefully, second year na ito ng implementation ng cash-based budgeting. Hopefully, efficient na at may acceptance na (We believe we need more leeway in 2020. We hope that by the second year of cash-based budgeting the process will be more efficient and widely accepted),” he said. — Vince Angelo C. Ferreras

Mindanao-Visayas grid connector on track for 2020 completion

PRIVATELY OWNED National Grid Corp. of the Philippines (NGCP) expects to complete as scheduled next year the P52-billion project that will link the power grids of Mindanao and the Visayas despite continuing right-of-way and permitting issues.

“MVIP (Mindanao-Visayas Interconnection Project) is underway. I hope we finish as scheduled. We have already awarded part of the submarine cable,” Nanette Nancy G. Bugnosen, NGCP chief finance officer, told reporters.

“We are still negotiating with some local government units for the necessary permits to proceed with the work, and also we are negotiating with some landowners for right-of-way clearance,” she added.

MVIP, which was classified in May 2018 by the Energy department as an energy project of national significance (EPNS), will undergo a streamlined permitting process while speeding up its required documentation for its faster construction and completion.

In November, NGCP announced that it had simultaneously broke ground on the project’s cable terminal stations in the municipality of Santander in Cebu, and Dapitan City in Zamboanga del Norte.

The cable terminal stations serve as the landing points of the two 92-kilometer submarine cables that will carry around 450 megawatts (MW) of power from the Visayas and Mindanao, and vice versa.

Considered the biggest power infrastructure project in Philippine history, the project also requires the installation of 526 circuit-kilometers of overhead transmission lines, high-voltage direct current converter stations, and upgrades to substations in both regions.

Ms. Bugnosen said once the negotiations with local governments and landowners are complete, NGCP will proceed with the needed construction.

“In the meantime, we have worked with the providers and consultants to make sure that we make the deadline — that’s end -2020,” she said.

MVIP is one of the 29 NGCP projects that were certified as energy projects of national significance by the Department of Energy. An executive order gives an EPNS faster issuance of regulatory and documentary requirements from local and national government agencies.

The perks include action on applications for permits and requirements within 30 days, and the automatic approval of all applications within five working days if no action of a government agency is made after 30 days.

The 29 projects will cost a total of P90.291 billlion as approved by the Energy Regulatory Commission. — Victor V. Saulon

House discussing extended foreign farmland leases

THE House of Representatives received bills and resolutions seeking to ease restrictions on foreign investment, including a proposal to increase the term foreigners can lease farmland.

Among the bills and resolutions filed at the House seeking various amendments to the 1987 Constitution was Joint House Resolution No. 4, introduced by Pampanga 3rd district Representative Aurelio D. Gonzales, Jr.

“We propose the qualified owning of land for foreigners to entice them to invest in our country and invite foreign direct investment. Additionally, this will ensure that our country produces enough food for our people,” Mr. Gonzales said at a committee hearing.

He said he proposes an amendment to allow the renewal of foreign leases of agricultural land for another 25 years.

“Foreign investors must be assured that our economic environment is conducive. That’s why we propose that we increase the renewal of the lease period of agricultural lands for another 25 years to ensure continued economic growth and development,” he said.

Asked to comment, American Chamber of Commerce of the Philippines, Inc. Senior Adviser John D. Forbes said that in general, the Constitutional restrictions on foreign investment are out of date.

“The restrictions were originally protectionist. But… the world has changed. A lot has changed since 1987. The restrictions, the way they are in the Constitution, are inflexible and difficult to change,” Mr. Forbes said.

He added: “The Philippines has tremendous investment potential. There are now more foreign investments coming into ASEAN than China… I don’t think one has to fear foreign investors if you can regulate foreign investors.”

Competition Commissioner Johannes R. Bernabe, also asked to comment, said: “Even as we generally support liberalization in so far as economic activity is concerned, because this fosters greater competition in the markets, regulation should also accompany such liberalization.”

John Paul P. Corpus, a supervising research specialist at the Philippine Institute for Development Studies, said he supports the power of Congress to “legislate exemptions” to foreign investor restrictions.

“We support the proposed amendments giving the Congress’s ability to legislate exemptions to foreign equity restrictions in order to attract greater foreign investments and improve competitiveness. (However)…there is a need to balance the pursuit of economic goals while protecting the national patrimony and the public interest,” Mr. Corpus said.

According to the United Nations Conference on Trade and Development’s (UNCTAD) 2019 World Investment Report on special economic zones, Foreign Direct Investment flows to the Philippines fell 25.75% to $6.46 billion in 2017. — Vince Angelo C. Ferreras

Duterte signs law allowing foreign universities to offer degree programs in Philippines

PRESIDENT Rodrigo R. Duterte has signed a law allowing foreign institutions of higher education to establish commercial enterprises in the Philippines providing educational services and to collaborate with universities here.

Mr. Duterte signed Republic Act No. 11448, also known as the Transnational Higher Education Act, on Aug. 28, according to a statement issued Wednesday by the Palace.

The law cites the need to provide quality education relevant to the changing needs of Filipinos in light of the “rapid developments brought about by globalization, including liberalization of goods and services and expanding use of information and communication technologies, have created a climate for borderless teaching and learning.”

The transnational higher education (TNHE) industry, as defined by the law, covers all types and modes of delivery of higher education study programs, sets of courses of study, or educational services.

Under the law, foreign higher education institutions (FHEI) may establish a commercial presence or provide educational services in the Philippines through various modes or arrangements with a Philippine counterpart.

The law recognizes business models such as Academic Franchising, the establishment of a Branch Campus, and the offering of Joint Degrees with Philippine counterparts.

The law also permits Online, Blended, and Distance Learning; Twinning Arrangements with foreign study components, and Validation, under which an FHEI awards degrees to students who complete a program while studying with its Philippine partners. — Arjay L. Balinbin

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