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Bria Homes expands in central, northern Luzon

MASS housing developer Bria Homes is continuing to expand its projects in Central and North Luzon, as business hubs start sprouting up in these regions.

“The expansion of the world-class Clark International Airport, the Subic-Clark cargo railway, and the building of the NLEx-SLEx connector road, for instance, are spurring demand for industrial, commercial, and residential space,” Bria Homes said in a statement.

Bria Homes has communities in Alaminos, Pangasinan; Urdaneta, Pangasinan, Paniqui, Tarlac; Magalang, Pampanga; San Fernando, Pampanga; Mariveles, Bataan; and Hermosa, Bataan, among others.

The housing developer is planning more projects in other towns and cities in North and Central Luzon.

Bria Homes, a subsidiary of Golden Bria Holdings, Inc., offers flexible payment schemes such as bank-financing and Pag-IBIG funding.

SXSW cancels festival over coronavirus risks

ORGANIZERS of South by Southwest canceled this year’s arts, music and technology festival in Austin, Texas, citing concerns from city officials about the continuing spread of the coronavirus.

The gathering attracts hundreds of thousands of people to the city each year to catch a glimpse of some of the world’s biggest bands, filmmakers, politicians, and business executives. The event, which was scheduled to begin in a week, is a substantial force in the local economy.

“It’s really unfortunate to be canceling South by Southwest; it’s a really important event to our city in a lot of ways,” Mayor Steve Adler told reporters Friday. “I’m proud that we’re making decisions that are data-driven and based on the evidence.”

The conference — which was to run from March 13 to 22 this year — brings the city invaluable media attention that’s helped Austin raise its profile globally over the decades as a technology and cultural hot spot. It has even helped transform the town into a mini Silicon Valley. Dozens of startups and tech titans including Alphabet Inc., Apple Inc. and Facebook Inc. have opened offices there in recent years. In the past week, many of those companies had canceled their appearances at the conference as the virus spread in the US.

More than 100,000 people have tested positive for the coronavirus worldwide, and more than 3,000 have died. US President Donald Trump signed a $7.8 billion emergency coronavirus spending bill on Friday, and several state and city governments are seeking to tap emergency funds for treatment and prevention.

Around the world, high-profile musical acts, including Green Day, Mariah Carey, and Wolf Parade, called off concerts or entire tours, and the release of the newest James Bond movie was delayed from April to November.

Some of the largest conventions in the technology industry and beyond have been canceled or postponed to prevent the spread of the deadly virus. Among them: the Mobile World Congress in Barcelona, the Game Developers Conference in San Francisco, Facebook’s F8 developer conference in San Jose, California, and the TED conference in Vancouver.

Several event organizers said they will offer online content in place of a physical gathering. South by Southwest said it’s exploring options to provide web programming and hold the show at a different date. The event injects hundreds of millions of dollars into the Austin regional economy each year — by far the most profitable event for the city annually.

South by Southwest has branched out over the years from a film-and-music festival to a multitiered conference offering classes, video game competitions, technology panels, and political interviews. All those components drew more than 400,000 participants last year and contributed $356 million to the local economy, according to data from the conference.

The financial impact will be felt by restaurants, bars and the municipal government, in addition to the conference, its participants and performers. Many event contracts don’t account for cancellations due to an uncontrollable occurrence like a virus outbreak, said Lauren Spahn, an entertainment law partner at Shackelford, Bowen, McKinley & Norton in Nashville who was scheduled to attend South by Southwest. “This is such a widespread issue,” she said. “Everyone is losing.” — Bloomberg

‘Sharia fintech’: Start-ups race to tap Indonesia by aligning with Islam rules

JAKARTA — Like millions of other Indonesians, Gandi Iswara had for years carried a wad of currency notes for dropping into donation boxes after prayers at mosques in suburban Jakarta.

From late last year, though, the 35-year-old engineer switched to a more convenient option: whipping out his mobile phone, firing up a digital payment app from Google-backed GoPay and tapping the QR code stickers that are now affixed to the boxes.

His digital conversion took some time, as Mr. Iswara initially held the view that all rewards and discounts offered by e-wallets conflicted with Islam.

“At first, I thought e-wallets resulted in usury, which is forbidden by Islam. But after a while I found them convenient in daily life,” he said.

Winning over conservative Muslims like Iswara in the world’s most populous Muslim-majority country is both a challenge and multibillion-dollar opportunity for fintech firms that are riding its mobile internet boom and aim to sell financial services.

Of Indonesia’s 270 million population, half lacks bank accounts but most now have mobile phones.

Questions about compliance with Islamic law are a significant hurdle for the adoption of digital payments and other fintech services, industry executives say.

Known as Sharia, the law strictly prohibits charging interest, or “riba,” and clerics in Indonesia disagree on whether the popular cashback rebates and discounts given by digital wallets qualify. Social media videos in Indonesia on whether e-wallets are “haram” — prohibited by Islam — or incorporate “riba” rack up hundreds of thousands of views.

Indonesia’s top Muslim clerical body has even issued an edict deeming virtual money acceptable, as long it met specific conditions.

To showcase the compliance of their services with Islam, fintech firms are organizing forums with Islamic scholars and sponsoring religious festivals. Newer startups are tailoring services for Indonesia’s growing body of “born-again” Muslims, known as the “hijrah” movement at home.

GoPay, which is part of ride-hailing firm Gojek, has partnered with the Indonesian Mosque Council since November to enable digital donations, including “zakat,” or compulsory alms giving, in its 800,000 mosques, CEO Aldi Haryopratomo said. “Zakat” alone amounts to over $500 million annually in Indonesia.

“It has made it much easier for people to pay alms,” said Budi, chief administrator of Jakarta’s Istiqlal mosque, the largest in Southeast Asia, referring to digital payments services.

Rival LinkAja, which was formed by a consortium of Indonesia’s top state-owned firms, has launched similar donation efforts. It is now readying LinkAja Sharia, which will offer a range of financial services specifically targeted at conservative Muslims and only accept money from Islamic banks.

Backed by companies including telco Telkomsel and Bank Mandiri, LinkAja is currently seeking to raise $200 million in outside financing, sources told Reuters. The company declined to comment on its funding.

BROADENING APPEAL
The scale of ‘sharia-fintech’ in Indonesia is small, so far, with Islamic fintech start-ups disbursing about 1 trillion rupiah ($73.15 million) in sharia-compliant loans in 2019, a four-fold increase from 2018, according to the Indonesia Sharia Fintech Association.

But with all forms of Islamic banking accounting for only 6% of Indonesia’s $580 billion in banking assets, there is room for growth.

The sector is also getting a policy push. The country’s vice-president, cleric Ma’ruf Amin, took over Indonesia’s National Islamic Finance Committee in January and has cited the growth of Islamic fintech as a key national priority.

Some of the startups say they are finding their appeal extends beyond Muslims.

One of them is peer-to-peer lender ALAMI, created by three ex-bankers, which has disbursed over $7.5 million in sharia-compliant financing to small and medium enterprises since May, and plans to become a digital bank.

CEO Dima Djani said that although conservative Muslims are its main target, others also are choosing it as an ethical banking option.

“They see the fact we are focused on sharia principles as a sign of integrity,” he told Reuters.

Muhamad Fajrin Rasyid, president of Bukalapak, one of Indonesia’s top e-commerce companies which offers a sharia-compliant investing service, concurs.

“Many of our customers are from other religions,” he said. “Some people tell us that sharia is not only for Muslims, it represents ethical financing.” — Reuters

ICTSI says US court reduces damage award to $19 million

Manila International Container Port (MICP)
ICTSI “pleased the court affirmed the jury’s findings.” — BW FILE PHOTO

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) on Monday said a court in the United States had reduced to $19 million from $93.6 million the award in damages that International Longshore and Warehouse Union (ILWU) was supposed to pay the company.

“We are pleased the court affirmed the jury’s findings that the ILWU engaged in illegal actions for five years and that these actions directly caused ICTSI Oregon, Inc.’s damages,” ICTSI Oregon, Inc.’s President and Chief Executive Officer Elvis Ganda was quoted as saying in a disclosure to the stock exchange on Monday.

He added: “However, we are disappointed in the court’s opinion that ICTSI Oregon, Inc. only suffered $19 million in damages rather than the $93.6 million the jury awarded after hearing all the evidence during the two week trial.”

He said the company was considering “all options” in its continuing efforts “to hold the ILWU accountable and obtain justice.”

ICTSI announced in November last year that a court in Oregon, United States had awarded $93.6 million to ICTSI Oregon, Inc. after it ruled in favor of the company in a case it filed against ILWU and ILWU Local 8 “for unlawful labor practices.”

ICTSI Oregon and Port of Portland inked a lease agreement in 2010 to run the container facility at Terminal 6.

However, disputes with the ILWU had brought operations at Terminal 6 to a standstill for more than a year.

The company’s problems began in June 2012 when the ILWU leaders wanted their members to be assigned the jobs involving handling of refrigerated containers, which have been done by Port electricians since 1974.

This led to both parties filing court cases, while ILWU members began work stoppages and slowdowns at Terminal 6.

Hanjin Shipping withdrew its service from Portland in March 2015, with other carriers following suit. — Arjay L. Balinbin

Hospital game in the time of COVID-19

Two Point Hospital
Nintendo Switch
Monster Boy and the Cursed Kingdom
PC via Steam

WHEN Two Point Hospital first made waves on the personal computer two years ago, it became known as the spiritual successor of Theme Hospital, and rightfully so. It carries the genetic imprint and soul of its 1997 progenitor, a business simulation game which has become an enduring hit in the video game industry. To date, Theme Hospital has sold over four million copies worldwide, a feat that Two Point Hospital hopes to equal, if not surpass, as it ports over to the Nintendo Switch. Developer Two Point Studios does have the pedigree; producer Mark Webley was also the project leader, as well as programmer and developer, of Theme Hospital for Bullfrog Productions. Today, with designer/artist Gary Carr and programmer Ben Hymers, former Bullfrog colleagues, they’re meeting the challenge head-on. Given its presence in six platforms all told, Two Point Hospital has become the second most downloaded game in terms of sales in much of the world.

If you remember playing with Theme Hospital, and remember, that was 23 years ago, you’ll definitely find Two Point Hospital a familiar and comforting presence to have in 2020. It looks familiar, sounds familiar, plays almost the same BUT. The BUT is that, in 2020, Two Point Hospital is Theme Hospital on steroids, making the experience better, with fun, three dimensional graphics, seamless camera transitions, and better storytelling overall.

In Two Point Hospital, much like Theme Hospital, the player acts as an administrator and decides which patient needs are best met by the hospital of a specific area at a specific point in time. The hospital comes as an single empty shell, and the player is tasked with filling it with clinics for diagnosis and treatment, as well as the hiring, firing, and training of its employees, from doctors to nurses to assistants to even janitors. There are options for buying extra lots and erecting new buildings, as well as adding new clinics to address the area’s patients. There are plenty of ways to customize the hospital, with extra features and elements that can be unlocked through progress in game levels and areas.

While the bare bones of both Theme Hospital and Two Point Hospital are the same, upgrades have been introduced to completely change the way the latter meets the challenges of this new era. For one, changes in the way characters behave, function, and work within the model hospital make this homage a better version of the original. Traditional gender roles no longer apply; both men and women can be doctors, nurses, assistants, and janitors — and, as such, emphasis is placed on qualifications and training rather than gender.

In Two Point Hospital, training is available for all personnel, thereby allowing the player’s chosen medical professionals to specialize. This enables diagnosis and treatment to go much faster and with less failure. Assistants are no longer mere receptionists; they are a vital cog in the hospital manpower wheel as they perform check-in, basic triage, and even marketing. Janitors no longer just clean, maintain, and upgrade machines; they can also train others as they accumulate skill in other areas.

There are various levels to pass, and each level requires at least a one-star rating for the next one to open up. Three stars make one a superstar in that level’s hospital and VIPs flock to avail of services. As the hospital’s designated CEO and Board of Trustees in one, money decisions are left to the player, and if the player listens to the needs of the populace, decisions on cure, personnel, and material not only earn the hospital a good reputation but also a lot of money to do more things. There are awards to compete for, leading to extra credit for unlockable items. Fortunately, proceedings can be interrupted anytime; the player can choose to go back to previous levels without penalty in his/her last level. Features unlocked in the most current level carry over to the earlier ones so there is always room to improve the hospital, feature and strategy-wise.

As a port from the 18-month-old PC game, Two Point Hospital on the Switch does take a little getting used to, particularly when it comes to Joy-Con controls. It doesn’t feel intuitive from the get-go. That said, it takes only one or two passes and practice runs on the levels to get the hang of things. There might be a couple of tweaks needed to make the menus easier to handle, but all in all, they don’t take away from the beauty of the game. Frame rate drops can and do occur, especially when the screen gets busy, but, for casual gamers, it isn’t really a dealbreaker. In truth, it’s hardly noticeable.

There’s a lot of humor and hilarity in Two Point Hospital, the same way it was in Theme Hospital, and it’s best appreciated in the ingenious way sickness is named, approached, and treated. “Jest infections” never grow old, for one. But it’s also sobering to note that while laughter and enjoyment can be derived from the game, it also reminds us that what passes off as a game may emulate true life and death situations. And as in real life in the time of COVID-19, hospitals that are better equipped, better managed, and better staffed are able to save more people.

THE GOOD:

• Fun, funny, and, punny

• Faithful homage, but improved experience

• Engrossing

THE BAD:

• Can be repetitive

• Cartoon visuals an acquired taste

• Occasional frame drops

• Difficult at first

RATING: 8.5/10

MONSTER BOY AND THE CURSED KINGDOM

Based solely on how Monster Boy and the Cursed Kingdom looks and feels, Game Atelier clearly put a lot of heart into its creation. From its stylistic art design to its tight, metroidvania gameplay, it presents itself with aplomb — no small feat considering its history. Having descended from the lauded Wonder Boy franchise that used to grace arcade machines and Sega consoles alike, it had huge shoes to fill upon its release.

In Monster Boy and the Cursed Kingdom, players control Jin, a young boy who journeys out to stop Nabu, his uncle, from causing havoc across the land. Nabu had been turning people into animals, and by standing up to his uncle, Jin put himself in danger, and soon finds himself turned into an animal as well. In order to undo this animal curse, he must find and make use of five special animal orbs scattered throughout the land. Only by harnessing their power can he hope to right the wrongs that his uncle had made, and undo the spell that keeps them bound as they are.

Monster Boy and the Cursed Kingdom has a simple a premise as can be expected from the series, and it unfolds pleasantly. From the moment the game starts, its art style simply pops off the screen with its bright visual design and old-style anime aesthetics. Monster designs are particularly nice to look at, and serve as simple but effective callbacks to a much simpler time, when games weren’t rendered three-dimensionally, but were instead two-dimensional art assets made with much care and love.

Just as well-crafted as the aesthetics are the stages themselves. While Monster Boy and the Cursed Kingdom’s gameplay is standard metroidvania, it boasts of levels that rise above the usual dregs of the genre. For the most part, they manage to be just right, both in terms of presentation and length. They never outstay their welcome, and are often presented with various twists in their design that force the player to make use of many animal forms to progress. While some of these levels require back-tracking, they never really feels like busywork. Every new obstacle surpassed feels like an actual accomplishment, and in many ways, the endeavor encourages and rewards players to explore the environment and to not be afraid to take their time.

This does, however, open up some core issues in the game itself. While exploring Monster Boy and the Cursed Kingdom’s levels can be fun and entertaining, engaging in combat is anything but. Its controls are responsive, but the general lack of weight of battles feels quite strange. It never kills the enjoyment, but it does leave encounters with enemies feeling less satisfying than they normally should be, as these tend to lack impact and feel more like minor obstacles than challenges of strength.

Monster Boy and the Cursed Kingdom’s puddle design is another cause for concern. It varies wildly from straight-forward and fun, to rather cryptic and confusing. While it’s not usually a problem, it can really dampen gamers’ enjoyment and sense of accomplishment, especially when parts of the game can drag along purely because of the puzzle’s existence.

All in all, though, Monster Boy and the Cursed Kingdom is a worthy purchase for any fan of side-scrolling metroidvania. Minor issues do exist, but gamers can easily breeze past these and tear into its plentiful content without too much of a fuss. Highly recommended.

THE GOOD:

• Tight, responsive controls, with very fluid and intuitive gameplay

• Great art and aesthetic design

• Plenty of hours of well-designed side-scrolling content available

THE BAD:

• Some cryptic puzzles can kill pacing

• Combat tends to lack impact for the most part

RATING: 8.5/10

THE LAST WORD: Heritage Auctions put up the Nintendo Play Station for auction last week, and the endeavor netted it a whopping $360,000. The bidding was won by Los Angeles, California-based entrepreneur Greg McLemore, whose dot-com investments have enabled him to pursue his passion for collecting videogame memorabilia. He plans to build, in his words, a “permanent museum” to house his assets. Meanwhile, he’s engaging others to showcase them, including at the University of Southern California Pacific Asia Museum next year.

Currency? Commodity? Bitcoin has an identity crisis

LONDON — So bitcoin’s a currency, right? Well, yes, it can be used to buy, sell and price goods much like dollars and euros.

A commodity? Come to think of it, it does behave a lot like oil and gold — it can be bought and sold in cash markets or via derivatives such as futures.

What about a security? Many cryptocurrencies are, in a way. They’re issued like stocks in “initial coin offerings” and used to represent shares in online projects.

The debate may appear abstract, with little bearing on the hard-boiled world of finance, but it is attracting increasing interest from economists and lawyers who say it could have major implications for the future of cryptocurrencies.

How bitcoin and other digital coins are defined could shape how they are regulated around the world. In turn, the rules they are subject to could determine whether they make the leap from a niche to a mainstream asset.

So how will regulators treat them?

In the United States, federal watchdogs say they see elements of both securities and commodities, but like most major economies have not come up with a set of rules. The European Union, however, will outline a framework this year, which could see crypto wedged into existing regulations, or a whole new set of rules created.

For market players, how bitcoin and its kin are regulated will have serious ramifications.

Commodity markets operate with relatively little regulatory oversight. Securities, on the other hand, are typically subject to more onerous rules on price transparency, trade reporting and market abuse.

“When we’re going through the security process, we spend a lot of fees and lawyers to make sure we’re in compliance,” said Benjamin Tsai, president of Wave Financial, an investment manager in Los Angeles overseeing $40 million in crypto.

“It’s a lot more of a pain in the butt.”

CHARACTER CLUES
Some of the cryptocurrency identity crisis lies in the fact that bitcoin was originally conceived as a means of payment, but now rarely bears the hallmarks of dollars, euros or pounds.

It’s of little use as a store of value because of its volatility, and is hampered as a means of exchange by its slow network and high transfer costs.

A booming bitcoin lending market is offering clues to its character.

Bitcoin lending offers lines of credit to crypto firms earning money in cryptocurrencies, such as payment processors or miners, looking to secure traditional money for covering expenses. Also, traders who don’t want to sell their bitcoin holdings use them as collateral to borrow cash for use in algorithmic or high-frequency trading.

For those lending money, relatively high yields are an attractive proposition in an era of rock-bottom rates.

Key characteristics of this market, such as market-led price discovery and the motivation to seek liquidity, mirror that of commodities leasing, according to market players and economists.

“The commodities markets (analogy) is very fitting,” said Deeksha Gupta, an assistant professor of finance at the Carnegie Mellon University in Pittsburgh who has researched crypto.

“One of the biggest similarities is that they are also driven by people wanting to be able to get liquidity.”

The bitcoin lending market has grown quietly as an opaque corner of the cryptocurrency sector, which itself is notorious for its lack of transparency. While there’s little data with which to gauge the size of the lending market, it is widely seen to have expanded rapidly over the past year.

New York-based Genesis Capital, one of the biggest lenders in the market, said its outstanding loans soared late last year to around $545 million compared with $100 million a year earlier.

Implied interest rates in these markets — the price of borrowing bitcoin — stand at around 4-5%, Genesis CEO Michael Moro said. On platforms for people to lend cash against bitcoin, rates are as high as 8%.

FINANCIAL INSTRUMENTS
Cryptocurrencies’ kinship to securities arises largely from their issuance and function in initial coin offerings, or ICOs, where they are used to raise traditional money.

ICOs are often held by companies seeking to raise funds for blockchain-related or other online projects. They raise capital by issuing digital coins, which grant holders access to the new system or software or a share in profits generated.

For instance, Switzerland-based Aragon — a management platform for decentralized organizations — raised about $25 million in 2017 issuing tokens that gave voting rights on how the system is developed.

Regulators may choose to treat different cryptocurrencies differently, depending on their specific characteristics, an approach taken by Britain last year.

Some players say any designation of cryptocurrencies as financial instruments akin to securities may be positive, with burdensome oversight balanced by the potential to allow funds to market cryptocurrencies to a wider pool of investors.

“If they were somehow classified as a financial instrument, then that would have the knock-on effect that they would be eligible for retail funds,” said Nic Niedermowwe, CEO of crypto fund Prime Factor Capital in London. — Reuters

Greenfield City sees growing demand

GREENFIELD Development Corporation (GDC) said its mixed-use development Greenfield City is seeing a boost in demand after the opening of the Cavite-Laguna Expressway (CALAX) last year.

Located in Sta. Rosa, Laguna, Greenfield City is a 400-hectare development with commercial and residential spaces.

GDC developed four residential communities within Greenfield City, namely Trava, Solen Residences, Pramana and Zadia.

“With CALAX, travel to Greenfield City and the rest of the Laguna will be reduced to 45 minutes from the original 90 minutes from the stretch of SLEx to CAVITEx. This increased level of convenience has bolstered the demand for residential properties within Greenfield City, which is rife with all the essentials needed for holistic living,” GDC said in a statement.

Greenfield City is also home to Laguna Central, Arcadia and Paseo Outlets, as well as Sta. Rosa Business Parks 1 and 2, and Greenfield Autopark.

How PSEi member stocks performed — March 9, 2020

Here’s a quick glance at how PSEi stocks fared on Monday, March 9, 2020.

Cybersecurity: The world’s best (and worst)

Cybersecurity: The world’s best (and worst)

Deferred airport fees ordered for airline coronavirus relief

AIR TRAVEL regulators said they will defer collection of take-off, landing and parking fees from Philippine carriers as a form of relief from the coronavirus outbreak.

The Civil Aviation Authority of the Philippines (CAAP) and Manila International Airport Authority (MIAA) said the action was taken on the order of Transportation Secretary Arthur P. Tugade, adding that collections could be deferred for “over a year.”

“Tinitingnan natin kung paano sila makaka-recover (We have been studying how airlines can recover), and that’s why we’re talking about over a year of deferment and over a year of payment,” CAAP Director General Jim C. Sydiongco said at a briefing in Pasay City.

MIAA General Manager Ed V. Monreal said: “We’re seeing about P58 million a month in terms of expenses that will cover take-off, landing, parking at NAIA (Ninoy Aquino International Airport). Deferred payment lang po muna ang ie-extend natin (We will offer them deferred payment)” while the outbreak of coronavirus (Covid-19) is affecting their operations.

Mr. Monreal added: “Mayroon kaming scheme na ipapatupad. Magkakaroon kami ng time to revisit and evaluate on how we can recover (We are studying what scheme to implement. We will have time to review how we can recover).”

Philippine carriers have suspended flights to China, Hong Kong, Macau, and parts of South Korea due to the coronavirus outbreak.

Mr. Monreal said the impact on passenger volumes in February was “bumaba po tayo ng almost 476 thousand passengers sa ating paliparan, that consist of arrival and departure, domestic and iternational. Mas marami ang international drop ng mga pasahero (We recorded a decline of about 476,000 passengers using the airport, both arrivals and departures, with the drop more pronounced in international traffic).”

Last month, the Air Carriers Association of the Philippines, Inc. said it was expecting to issue about P3 billion worth of ticket refunds in the next two months after the Philippine travel ban on China, Hong Kong, Macau and Taiwan.

The Philippines itself has had six COVID-19 infections, half of which were confirmed last week. Before that, it had not reported any new cases for weeks.

Earlier, three Chinese visitors were infected with the virus — one of whom died. The other two have since recovered and left the country.

The Department of Health on Saturday raised the country’s alert level to Code Red sublevel 1, as health authorities “prepare for a possible increase in suspected and confirmed cases,” according to Health Secretary Francisco T. Duque III. — Arjay L. Balinbin

Palace certifies CITIRA as urgent

THE measure lowering the corporate income tax (CIT) and streamlining fiscal incentives was certified as urgent Monday by President Rodrigo R. Duterte.

In a letter to Senate President Vicente C. Sotto III dated March 9, Mr. Duterte informed the chamber that Senate Bill No. 1357, or the proposed Corporate Income Tax and Incentives Rationalization Act (CITIRA) is deemed an urgent measure.

The tax bill is intended to “promote foreign direct investment inflows and the expansion of business ventures conducive to economic growth and job generation,” the President said in the letter.

The certification allows the Senate to approve a measure on second- and third reading on the same day, doing away with the required three-day interval.

CITIRA is currently being considered by the Senate in plenary session, with two session days remaining before Congress goes on a seven-week break between March 13 and May 3.

The bill will gradually reduce the CIT to 20% by 2029 from the current 30% and grant an income tax holiday of two to four years. After the tax holiday, qualified companies will have to pay a special corporate income tax of 8% this year; 9% in 2021; and 10% in 2022 based on gross income earned (GIE), in lieu of all national and local taxes.

Senate President Vicente C. Sotto III has said the measure may be set aside in favor of measures to deal with the coronavirus outbreak.

The Philippine Economic Zone Authority (PEZA) has also asked the chamber to delay the passage of the CITIRA as exporters are affected by the outbreak.

“Ang aming pakiusap sa Senado wag po natin i-railroad ang CITIRA (Many have called on the Senate not to railroad CITIRA) but to carefully study it because our export industries, clients of PEZA, are the most affected,” Director General Charito B. Plaza said during a Senate Economic Affairs Committee hearing Monday.

The Action for Economic Reform (AER) called PEZA’s position as a “most reckless, most irresponsible act.”

“The main reason behind the lacklustre investment performance last year was the investor uncertainty created by the needless delay in the deliberations on CITIRA. Investors just want to know what the final rules are, and they will immediately make investment decisions,” AER coordinator Filomeno Sta. Ana III said in a statement Monday.

The measure forms part of the administration’s comprehensive tax reform program, alongside the proposals to simplify the tax structure for financial instruments, provide a uniform framework for real property valuation and assessment and increase the government share from the mining revenues.

The government has so far enacted a tax measure that slashed personal income tax rates and increased or added levies on several goods and services — the main component of the tax reform package — and another one that grants estate tax amnesty and amnesty on delinquent accounts left unpaid after final assessment. It has also moved to increase excise taxes on alcohol products and conventional and electronic cigarettes. — Charmaine A. Tadalan

SEIPI bats for perpetual 7% GIE tax rate

THE electronics industry said it is lobbying for lower tax rates on gross income earned (GIE) as well as perpetual entitlement to this incentive for exporters, both of which would represent a more generous tax treatment than the GIE incentives proposed in a pending tax reform bill.

In a revised position paper sent to reporters Monday, the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) said that it supports the Senate version of the Corporate Income Tax and Incentives Rationalization Act (CITIRA) with its preferred GIE terms.

CITIRA legislation proposes to gradually lower corporate tax rates while rationalizing incentives. The Senate version of the bill is pending, after the House passed its measure last year.

“We are still concerned that moving forward with this version will have detrimental effects on our electronics industry, investments and employment, as a result,” SEIPI said in the statement.

SEIPI said it is seeking a perpetual tax of 7% on GIE in lieu of all taxes for export enterprises instead of the time-bound concessional tax rates in the Senate bill.

SEIPI had been asking for an extended transition period of 7-10 years for holders of current incentives, after a four-year income tax holiday, for a total of up to 14 years.

Senate Bill No. 1357 sponsored by Senator Pilar Juliana S. Cayetano grants an income tax holiday of two to four years. After this, companies pay a special corporate income tax of 8% this year, 9% in 2021, and 10% in 2022 based on GIE, in lieu of national and local taxes.

Companies currently enjoy a four to-six year income tax holiday, after which they pay 5% GIE.

The bill proposes a two to seven-year transition period for companies that already avail of the 5% GIE.

Ten business groups and professional organizations, including the Management Association of the Philippines and the Makati Business Club, last week expressed their support for the current version of the bill.

Marie Genevieve L. Bautista, SEIPI Industry Analyst, said in a phone interview that a longer transition period would soften the blow for SEIPI companies because of the increased tax rate.

She said Vietnam offers a 16-year period for investors to enjoy incentives.

“Our companies are efficiency seekers so it’s actually quite easy for them to transfer to Vietnam if they choose to.”

She said the perpetual tax of 7% on GIE follows the lead of proposals made by Senator Ralph G. Recto last week.

Ms. Bautista added that SEIPI plans to submit its revised position paper to the Senate this week.

SEIPI also asked to change the terms of eligibility for a seven-year transition period, lowering the export threshold norm to 90% from 100%.

“Not all of our companies are at 100% export sales. Some are at 93%-95%. Although we understand that this provision is to encourage exports, these companies who service the domestic market pay regular Corporate Income Tax (CIT) on their domestic activities,” Ms. Bautista said. — Jenina P. Ibañez

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