Showing posts with label #investments. Show all posts
Showing posts with label #investments. Show all posts

Thursday, May 11, 2023

PEZA Investment Approvals up by 107.15%in April

PEZA INVESTMENT

Pasay City – With strengthened investment promotion and facilitation efforts, the Philippine Economic Zone Authority (PEZA) has recorded an increase of 107.15% in investments for the January to April period.

“From January to April 2023, PEZA has approved a total of 60 new and expansion projects worth Php 33.094 Billion investments, which is 107.15% higher as compared to the Php 15.975 Billion approved investments on the same period in 2022,” reported PEZA Director General Tereso O. Panga.

For the same period, the projects are also expected to generate about US$ 1.012 billion exports and create 7,469 direct jobs.

April Board approval
This comes as the PEZA Board greenlighted 14 new and expansion projects expected to bring in PhP 20.556 Billion investments and create2,233 jobs.

Among these 14 projects, seven (7) are into logistics service enterprise, four (4) into export manufacturing, and three (3) IT enterprises. These projects will be located in Baguio, Cavite, Laguna, Batangas, Cebu, and South Cotabato.

The biggest project pre-qualified by the PEZA Board for FIRB approval is engaged in the manufacturing of biomass fuel products made from Buyo-buyo(Piper aduncum-shrub), with investments worth PhP 19.701 Billion.

Increase in PEZA exports

For the first quarter of the year, PEZA also recorded a total of US$ 15.753 Billion actual exports despite the recent report of the Philippine Statistics Authority (PSA) on widening trade deficit.

Panga said, “In March alone, we have generated US$5.396 billion export revenues which account for 82.65% of the total country's US$6.528 Billion exports in March this year.

Strengthened investment promotions

“We believe that we are now reaping the results of the ongoing investment missions of President Ferdinand Marcos and his administration’s investment initiatives and it is now up to us to follow through the pledges,” explained Panga.

The PEZA Chief noted, “We remain positive that more investments will come to the Philippines withthe big-ticket investments that we secured during the President's visits to Japan, US, and Switzerland among others.”

The US$1.3 billion in investment pledges and 6,700 jobs generated from the President's trip to the US is an indication of the American investors' renewed interest in the country. Based on the investment climate statement on the Philippines by the US Department of State, “The business environment is notably better within the special economic zones, particularly those available for export businesses operated by PEZA, known for its regulatory transparency, no red-tape policy, and one- stop shop services for investors.”

With the recently working visits of the President and his key cabinet and business delegation to the US, UK, Indonesia, Panga stated that, “We hope to attract FDI in advanced manufacturing, EV industry, RE development, mineral processing, regenerative agriculture, and frontier technologies particularly in digital health, fintech, blockchain, AI and big data—to boost our mix of industries and value-adding in the ecozones.” 

Tuesday, September 29, 2020

PH and India to Boost Trade and Investment

DTI meet with India

The Philippines-India Joint Working Group on Trade and Investments Co-Chairs DTI Undersecretary Ceferino S. Rodolfo and Ministry of Commerce Joint Secretary Anant Swarup with Ambassadors Ramon S. Bagatsing, Jr. and Shambu S. Kumaran with some members of the Philippine and Indian delegation.

Manila, Philippines –The Philippines and India successfully concluded the virtual 13thMeeting of the Joint Working Group on Trade and Investments (JWGTI) on 17 September 2020. The JWGTI was led byUndersecretary for Industry Development and Trade Policy,Dr. Ceferino S. Rodolfo, and Joint Secretary of the Ministry of Commerce of India Anant Swarup.

In the said meeting,discussions focused on initiatives tofoster synergies in various sectors such as textiles, electronics (Smart manufacturing and digital technologies, IC design and electronics system design manufacturing), IT-BPM (telemedicine, health information management, software development and IT solutions and online learning), energy, and agriculture.

Recognized as the “pharmacy of the world,” India was also encouraged to consider opportunities in the manufacture of active pharma ingredients, vaccines and essential medicines and establishment of R&D facilities for herbal medicines.

According to Undersecretary Rodolfo “the Philippines still has a traditional view of India. This mindset has to change given the vast opportunities for collaboration that remain untapped.” Joint Secretary Swarup shared the same view saying that “both sides share in each other’s total trade is negligible, from only about 0.3 – 1%, hence the full potential of the relations is yet to be reached.”

Relevant trade and investment promotion agencies from both sides are now gearing up to pursue concrete initiatives for an enhanced promotion of trade and investment between the two countries.

In 2019, India was the Philippines’ 14thtop trading partner (out of 226), 17thexport market (out of 220), and 13thimport supplier (out of 194) with total trade of USD 2.4 billion. India was also the 8thlargest source of approved investments at Php 915.64 million in 2019.

The JWGTI serves as DTI’s dedicated platform to discuss trade and investment issues, proposals for economic cooperation, and concerns on the business environment. The 13thJWGTI meeting was attended by various business organizations and was graced by their Excellencies Ramon S. Bagatsing, Jr., Ambassador of the Philippines to India and Shambhu S. Kumaran, Ambassador of India to the Philippines.

Thursday, June 11, 2020

DOT and BOI Finalized Incentives to Tourism Firms’ COVID-19-Proofing Investments

DOT

Responding to a request from Tourism Secretary Bernadette Romulo-Puyat, the Board of Investments (BOI) has approved investment incentives for tourism and tourism-related industries that are upgrading and modernizing their facilities aimed at ensuring the health, safety and wellness of their clients in view of the new normal brought about by the COVID-19 pandemic.


“We recognize that the tourism sector has been one of the worst affected of all the major sectors of the economy due to the current health crisis. By way of providing investment incentives, we hope the sector, which was a major driver of the economy’s growth pre-Covid-19, will stay afloat, continue their business operations, and recover the soonest they can,” said Trade Secretary and BOI Chairman Ramon Lopez.

Following discussions with the Department of Tourism (DOT) on the tourism stakeholders’ plea on the possible measures to ensure continuity of their business operations, the BOI crafted and approved the policy to help the tourism sector. The tax incentives to be granted by BOI are income tax holiday for a period of three years and duty-free importation of capital equipment (only VAT will be paid) for tourism projects that will renovate to enhance health and safety features and processes. The income tax holiday to be given will be pro-rated according to the amount of upgrade/renovation.

“Tourist accommodation facilities who would like to undertake improvements to make their facilities COVID-proof may consider registration of such with the BOI as modernization projects subject to qualification requirements,” Secretary Lopez said. “For existing tourism accommodation facilities in Boracay, which is currently covered by the locational restriction policy, the BOI will look into the possibility of likewise qualifying their COVID-proof improvements as modernization projects that may be entitled to a three-year income tax holiday (ITH) incentive.”

“While we currently have locational restrictions for new and expansion of tourism facilities in Boracay, we may qualify modernization of those in the area. All these, to help the tourism industry recover faster and provide comfort/safety in our tourism facilities,” he said.

Tourism enterprises that are eligible to apply for investment incentives include hotels and resorts, meetings, international conventions, and events (MICE) facilities, and tourist transport companies nationwide, including those in Boracay.

For tourist transport, these should be locally-assembled vehicles with sanitation features. The motor vehicles to be acquired or to be upgraded/modernized will have such sanitation and hygiene features including but not limited to barriers, payment portals, deionizers, seat organizers for sanitation kits, and other features that would promote physical distancing.

Examples of renovations/upgrade that can qualify for such tax incentives include renovation of guestrooms, food and beverage outlets, function/meeting rooms, recreation areas and/or other common areas; investment in new or upgrade of laundry, kitchen, housekeeping, employee facilities and other back of house facilities; building of full, partial or movable partitions; installation of built-in thermal scanners, hygiene gates, and/or booths; upgrade or improvement of ventilation, air conditioning, air filtration systems, water systems, water treatment facilities (STP); a mobile check-in system; non-touch or no contact door lock systems and non-touch control panels in elevators and other areas.

“The BOI will continue to work closely with the DOT in the review of our relevant policies to provide the necessary support to our tourism stakeholders and restore industry vigor and growth at the soonest possible time,” Secretary Lopez said.

The BOI has been supportive of the local tourism industry, implementing many initiatives to further improve the sector’s competitiveness. Just early this year, pre-COVID-19, it conducted capacity building activities on securing international certifications for particularly for the medical travel and wellness tourism sector with the aim of making the industry prepared not only for the growing needs of the Filipinos, but also for the growing opportunities in the medical tourism industry. The capacity-building initiatives support and help enable the healthcare facilities and services, especially those licensed by the Department of Health (DOH) and/or accredited by the DOT.

The capacity-building is part of the many initiatives the BOI is implementing to further develop globally competitive industries through its Industry Development Program (IDP). The Roadmap on Medical Travel and Wellness Tourism was completed in 2015 with the active participation of relevant stakeholders.

Among the recommendations in the Roadmap are the implementation of a uniform system of data collection, analysis and dissemination and the development of a brand strategy for the country. The capacity building activities seeks to ensure that the sector, prior to the brand strategy launch, will have the right healthcare facilities that are internationally recognized and accredited that can multiply the people-value the country is known for.

Tuesday, March 24, 2020

More Cities Adopt Coworking Model Due to Cost, Convenience and Efficiency


Advancements in mobile technology and modern personal devices have changed the way people work. Working remotely has become more viable and has enabled both employees and employers to work outside the confines of a traditional office space without compromising work product. This has been a major factor in the development of business models and work set-ups designed to bring out the best in the workforce. In the Philippines, especially in Metro Manila, coworking is becoming more and more popular.

Coworking in the Philippines is a trend popularized by the tech savvy millennial generation, who comprise the bulk of the metropolitan sector. Coworking provides an alternative work environment that is conducive for work- without the rigidity of a traditional office.

The demand for coworking spaces in Metro Manila is increasing from freelancers, entrepreneurs, start-ups, small corporations, IT firms, BPOs, and even multinational corporations.

The benefits of cost, increased productivity and convenience are some of the main reasons why coworking has become a viable option for businesses.

Cost is one of the premier reasons why coworking has become popular. Firms looking for office space but need to conserve money, are becoming more and more aware that coworking spaces do not require long term lease contracts; come equipped with fundamental amenities, furniture and equipment of modern offices; and, are more cost effective than traditional office spaces.

Another major factor for the growing demand in coworking spaces is that it increases productivity. Coworking spaces are designed to foster collaboration, cooperation, innovation, creativity and a spirit of community by exposing people to new business concepts and encouraging the exchange of ideas.



Convenience is also a significant consideration why coworking spaces in the country are in high demand. MNCs that mostly use office spaces as temporary or swing spaces are recognizing that coworking spaces are convenient and provide them with the ability to move in and out of an office space at short notice and avoid complicated contract negotiations, fit out work, and dealings with brokers, landlords, and property managers.

The real estate industry in the Philippines is growing rapidly and coworking spaces have become a significant driver of property demand. In fact, both foreign and local flexible space operators as well as real estate developers have recognized this opportunity and are developing all types of coworking spaces around Metro Manila.

Lobien Realty Group (LRG) says Makati and BGC are currently the preferred locations for establishing coworking sites and have the largest number of coworking spaces because of the heavy concentration of businesses in these areas. Currently, the five companies handling the biggest chunk of the country’s coworking spaces have, more or less, 33 thousand seats on the market. LRG, for one, is currently handling Work Studios located at the Infinity Tower in BGC. With a total of 172 seats, it also boasts of 122 private studios, 3 meeting rooms, 31 dedicated desks, 19 hot desks, 18 breakout areas, and 27 lounges.

And as the trend of coworking gets more and more popular, LRG predicts that the property markets in Quezon City, Ortigas and Alabang will benefit next.

Monday, March 23, 2020

Sheila Lobien Honored as Super Achiever at the 7th World Women Leadership Congress


Sheila Lobien, founder and CEO of Lobien Realty Group (LRG), was presented with the Woman Super Achiever award by the World Women Leadership Congress (WWLC) during the 7th WWLC awards held at Taj Lands End Band Stand, Bandra (West), Mumbai, India last February 17, 2020.

The WWLC is a worldwide organization that seeks to promote and encourage the empowerment of women. The WWLC honors the strategic and influential role of various women leaders in the development of the modern economy, technology, and administrative methodologies that promotes the advancement of government and business organizations to global competitiveness standards. The WWLC hosts its annual Women Leadership Awards to identify and celebrate the outstanding body of work and achievements of women leaders that are reflected by the distinct innovations and initiatives they bring to the public and private sectors. By highlighting the triumphs and successes of these women, the WWLC hopes to inspire, encourage, and urge young women to aspire for and, eventually, assume leadership positions in society.

The Women Leadership Award recognizes and appreciates the profound role played by women as leaders, executioners, and decision makers, in shaping the future of regions and nations, and who embody the qualities of leadership in displaying active, creative, and integrative efforts in getting the best possible results towards achieving national and regional development.

Sheila Lobien is tremendously honored to have won The WWLC Woman Super Achiever Award and is extremely proud to receive an award that has been won by great Filipina women business leaders including Florencia Tarriela, Chairperson, PNB, Chaye Cabal-Revilla, PLDT SVP & Group Controller, Smart Chief Financial Officer, Rayla Melchor Santos, CEO, Pro-active Resources Inc., Co-Founder, I AM S.A.M. Foundation, and Educator Environmentalist, Bing Sibal-Limjoco, President, PCCI, and Sherill Quintana, President Director, Philippine Franchise Association, President, Oryspa.

Women’s empowerment in the Philippines has long been an advocacy of Sheila Lobien. She is currently the chairperson of the Women in Business Committee of the European Chamber of Commerce in the Philippines (ECCP). Having received a prestigious WWLC Woman Super Achiever Award in recognition of her accomplishments has definitely encouraged Lobien to work harder in advancing the status of women and developing them to become remarkable leaders.

Monday, November 4, 2019

PH Focuses on Innovation to Level Up Trade, Investment Partnership with Japan


TOKYO - The Department of Trade and Industry (DTI) highlighted the Philippine (PH) government’s new industrial policy that will push for innovation as it strengthens PH-Japan trade and investment relations. During the Nikkei BP Publications’ PH-Japan Business Investment Forum last 28 October 2019,DTI Undersecretary Rafaelita Aldaba discussed the country’s Inclusive Innovation Industrial Strategy (i3S) and the areas that both PH and Japan can collaborate under this policy.

“In the context of these trade and investment trends between the Philippines and Japan along with global developments such as the entry of new technologies, we feel the need to focus our efforts on innovation to address the opportunities and challenges arising from Industry 4.0 but also from increasing global competition, US-China trade war, and regional economic integration,” said Usec. Aldaba to over 600 members of the Japanese business community.

“i3S puts innovation at the heart of our industrial policies. Our goal is to grow globally competitive and innovative industries,” she added.

The Undersecretary underscored PH’s drive to develop its innovation and entrepreneurship ecosystem through strong collaboration between and among government, academe, and industry; utilize new technologies to make the country’s industries more competitive; reduce barriers in investments; and link manufacturing with agriculture and industry to expand PH’s global value chain participation.

“With Japan and the Philippines sharing complementing natural and human resources, technology and innovation will play a key role in helping us achieve the full potential of our economic partnership with Japan,” said Philippine Trade and Investment Center (PTIC) – Tokyo Commercial Counsellor Dita Angara-Mathay

At the sidelines of PH-Japan Business Investment Forum, eight investment meetings were arranged by PTIC – Tokyo, DTI’s field office in Japan with Undersecretary Aldaba and various Japanese firms to discuss business opportunities in PH. A total of USD 215 million-worth of investment projects to PH was reported following these meetings.

These investment intentions -- covering infrastructure development, railways, Electric Vehicle (EV) public transport systems, retail, manufacturing, logistics, warehousing, factory automation, construction, and real estate industries-- were presented and discussed with Undersecretary Aldaba and Commercial Counsellor Angara-Mathay.

The investment projects include the opening of PH’s first MOS Burger, Japan’s second largest burger chain, in March 2020; Assemblepoint Co., Ltd’s interest to develop smart 4WEV (4-wheel EV) using the latest IOT technologies; Japanese anime studio Satelight’s intention to outsource animation work in PH; as well as Kanepackage’s new factory facility.

Sumitomo Wiring also presented their two expansion projects in wire harness and components manufacturing. Marubeni Corporation likewise shared their joint venture project with Metro Pacific and LSI to build 30 primary care clinics, 10 cancer centers, and install five centralized laboratory testing hubs in strategic cities.

“There are many potential opportunities for the Philippines and Japan to deepen trade and investment partnership through innovation. I am delighted that the companies I met during this trip are making significant contributions in the areas of creating new industries, products and leapfrogging to Industry 4.0 by adopting smart manufacturing to transform our industries,” said Undersecretary Aldaba.

“We will try to reach out to more Japanese companies specializing in among others, electrified vehicles & parts, advanced manufacturing, factory automation, mobility solutions and smart cities. Philippine startups are also seen as future drivers of innovation. More learning missions to Japan will be organized to facilitate new learnings on and establish key connections with holders of new technologies like Artificial Intelligence (AI),” shared Commercial Counsellor Angara-Mathay.

Tuesday, October 1, 2019

Lamudi Highlights Sustainability and Resiliency in the Philippine Setting


Climate change is a global issue. It is one that is pushing the Philippines to act upon its weak spots and harness its strengths. “It’s inevitable,” Lamudi CEO Bhavna Suresh says at the media roundtable held last September 27 in partnership with Holcim Philippines and Subdivision and Housing Developers Association (SHDA). Though the country may be facing a dire situation, there is plenty to be done in response to climate change, from big, industrial efforts to small, household changes.

Lamudi reinforced their support for building resilient and sustainable cities with the first panel discussion, Sustainability Efforts for the Philippines of NGOs and Private Organizations. NGOs, private organizations, and green developers were represented in the discussion, which tackled the roadblocks to green development in the Philippines and determined the efforts already in place to steer the country into a greener future.

Highlighting Resilience

“Most of our coastal municipalities want to be cities eventually. How do we push them towards not just sustainability but also push them to also look at measures that will make them resilient as well?” Atty. Angela Ibay, Head of the Climate and Energy Program of the World Wide Fund for Nature, posed an important question at the roundtable, steering right into the thick of the important topic of sustainability and climate change.

In a country that is dotted with high-rise mixed-use buildings and humble coastal homes, the effort to save the environment is tightly coupled with the measures developers can take to safeguard the value of their legacy. One solution, something as simple as planting trees, encourages the growth of foliage and relieves some of the urban heat island effect our cities are experiencing right now. However, it is not enough.

“It’s not a question anymore of whether you can control climate change or not. It’s about adapting to the effects of climate change. It’s here. We are experiencing it now,” says Wesley Caballa, Senior Manager for Sustainability of Costa Del Hamilo Inc. According to Caballa, Hamilo is actively pursuing efforts to protect mangrove forests to do their part as a company.

Hamilo is one of many companies that have started making changes in keeping with a more climate-conscious business ethos. Climate change has not spared the Philippines with its onslaught, and with lives at stake, developers cannot sit around and wait.

“We are already in an area of the world that is highly, highly susceptible to all these natural disasters, and climate change made us more vulnerable to that,” adds Justine Santos-Sugay, Director for Resource Development and Communications of Habitat for Humanity.




Addressing Roadblocks to Sustainability

The Philippines has not been remiss when it comes to sustainable efforts. One of the problems developers and real estate experts face, however, is misinformation or lack of dissemination at the grassroots.

“When you ask a common fisherman, ‘What do you know about climate change?’ Sometimes they say it’s synonymous to disaster without knowing why,” adds Caballa. “It’s really important for them to know what is wrong, what climate change is all about.”

Santos-Sugay weighs in: “When you think about it, when you look at the issue of climate change, climate change seems to exaggerate or re-highlight a lot of the already pre-existing social themes.”

One issue all Filipinos will relate to, especially in the Philippine capital, is the water shortage. Despite the typhoons that visit the country and leave damage in low-lying areas, there is water shortage because the rainfall missed the dams that are meant to supply water to the majority of the city. Ferdz dela Cruz, former Chief Executive Officer of Manila Water Company, Inc., emphasizes the urgency of the matter: “It’s up to us to make hard choices for us to be resilient. There are no easy choices at this point. For us to make that, we need to have a constructive dialog and without the misinformation.”

Dela Cruz also mentions the disparity in the supply and demand for water supply. According to him, “There are two issues on water--there’s the supply side and there’s the demand side. On the supply side, there is a roadmap of what needs to be done, but there are delays in the execution of the roadmap. There’s always opposition to a big water project.”

Long-term solutions to water shortage and climate change are further hampered by the lack of initiative at the individual level. According to Dela Cruz, people forget about the problem once they have water, but it quickly resurfaces when another water shortage is felt.

Sustainability in the Commercial and Industrial Sectors

Much of the effort real estate developers have put into sustainability can be seen in the commercial buildings they have strategically positioned in key cities. Jaime “JJ” Fernandez, Strategic Management Consultant of Menarco Development Corporation, mentions the savings Menarco Tower is able to pass on to its tenants through its sustainable design. According to Fernandez, “There is an estimate that the tenant will save about 20% in terms of energy consumption because the way the building is built is very efficient.”

Fernandez also highlights the human aspect of thinking sustainable. “Prospective tenants would rather pay a little bit more rent” when they know the building will take care of their employees.

This, paired with Dela Cruz’s observation that people will be more responsible if the problem pinches their bill, makes the case for green developments: rather than lose money in inefficient designs, developers, tenants, and residents can save by prioritizing sustainability.

The Philippines, which receives ample sunlight because of its equatorial location, can do more to utilize solar energy, one of the most efficient ways to be sustainable. James Buskowitz, Chief Executive Officer of Buskowitz Group, explains that projects harvesting solar energy come in levels: “Residential scale has always been the goal, but not in the beginning. Typically, when a country starts developing solar projects, it always starts with utility, then it goes to commercial-industrial rooftops, then it goes residential.”

“If we combine all the roofs in the entire Metro Manila, we would have enough solar energy to power the entire Philippines,” Buskowitz shares.




Trickling to the Residential Developments

“What color is your roof?”

A simple question sparked discussion in the roundtable’s second panel discussion, Design and Construction Trends in Real Estate to Build Sustainable and Resilient Cities in the Philippines. It is not a pointless question either, as the simple selection of a white roof can already help a household save energy.

“A safe home, a resilient city, a safe community is at the heart of what we have to address to adapt to the changes in the climate,” mentions Santos-Sugay.

To add, Lamudi’s CEO says climate change is not an isolated problem: “All of these inequalities that exist in the world today are getting heightened because of global warming.”

We are not at a standstill when it comes to sustainable solutions, thankfully. Dela Cruz says, “The supply solutions will come many years from now, but everyone could start doing something on the demand side.”

One of the solutions proposed is a mirror of what other countries have already implemented: water tariffs. According to dela Cruz, “In other countries, what they’ve done quite successfully during periods of water shortage is to actually adjust the price of water--double or triple--during hot summer months basically to curtail the usage.”

Though this price adjustment has been discussed but not yet explored, companies such as Hamilo Coast have already implemented their own guidelines to conserve water and safeguard the environment from climate change. Hamilo Coast, which aims to be a “microcosm of what could be done,” practices a “top-down approach” on implementing sustainable policies. “The only way that we will see individuals actually follow the rules is if you put a system of checks, balances, and penalties.”

To get to the finish line, where a more climate-resilient Philippines awaits, each individual has to make impactful changes, but at the forefront are the bigger organizations that can influence those in their respective industries as well.

With miscommunication proving to be a big roadblock, the discussion needs to be sustained. This is one of the reasons for the creation of the roundtable, as Architect. Amado de Jesus, Vice Chairman of the Philippine Green Building Initiative, mentions, “If you have a bigger role, that’s a bigger responsibility.”

“Lamudi is a giant brand. With all the buildings that are together, the organizations that you have a big influence on, you can create a big impact,” says de Jesus.

Thursday, August 8, 2019

Investment Incentives Matter for Industry Development and Jobs generation


With rising globalization and  economic integration through free trade agreements, competition for foreign direct investments has heightened. Even within regional groupings like the EU and ASEAN, countries compete and reinforce their tax and other incentives to attract and influence the decisions of investors especially if all the basic infrastructures and investment climate are relatively similar to each other.  In countries like Thailand and Vietnam, investment incentives contributed to achieve rapid growth. Developing countries would even increase incentives to make up for certain infrastructure handicap or disadvantages.

As DTI Undersecretary Ceferino Rodolfo said, “Not all incentives are wasted, not all incentives are bad.  Incentives are able to attract investments into the country which would not have come in considering the advantages of other countries in terms of infrastructure, cost efficiencies, labor costs or resource availability. Incentives can help compensate for the disadvantages in locating in our country.”

Usec Rodolfo added “At this point, and following President Duterte’s mission to make lives of the Filipinos comfortable, we need all the jobs we can generate, to help uplift their lives out of poverty.

“Investors who have availed of incentives have likewise paid revenues on other tax dues coming from their operations.  Taxes were paid such as on withholding taxes from salaries, VAT, real estate taxes and the net effect is positive revenue contribution to the government”, Rodolfo said.

Based on TIMTA data from 2015 to 2017, the top ten PEZA enterprises paid total taxes of P45.3B while income tax incentives availed amounted to P45.1B resulting in a net revenue position of P0.2B.  Their exports which accounted for 22% of the country’s total reached US $40.7B in the same period. Their local purchases totaled P110.1B. In the same period, number of workers per year averaged 165,300.

Rodolfo cited that one high-tech electronics company posted a cumulative net tax revenue of P3B during its presence in the Philippines from 1981-2018, as its total taxes paid stood at P5.2B versus its income tax incentives availed of P2.2B.  During the period, exports totaled $3.9B, local purchases of P22.2B, salaries and wages paid amounted to P67.6B while employment expanded from 3,378 workers in 1990 to 24,222 in 2018, just for that company.

According to Rodolfo, in terms of BOI income tax holiday, companies also contribute revenues to government in the form of other taxes paid and the ratio is around 1:4.7 or for every one peso incentive, the companies pay around P4.70 for other taxes.   In 2017, the BOI Total Incentives Availed was Php27Bn; but Total Taxes Paid was Php128Bn. More importantly, BOI incentives are time-bound. After 4yrs, there is no foregone revenue but the Tax Payments continue on.

Based on the above, Rodolfo concluded that “incentives do not all result in leakages.  They definitely result in investments, job creation, expansion of domestic capacities and Net positive revenues to government.  So let us manage the transition period better.”

He reiterated the DTI Secretary’s position that “We are for the tax reform proposal especially in making the incentives timebound but we have to carefully manage the transition, and not rush the cutting of incentives such as the 5% GIE that we promised to the PEZA locators. Affected exporter-locators have expressed concern that the change in the system may compel them to redirect their expansion plans elsewhere and even risk the possible transfer of their current operations to other countries.  There is a risk and we should minimize all the risks as we need all the jobs we can generate.


We should therefore be careful in the transition for those who are 100% exporters and labor intensive and are paying more than what they receive in terms of incentives. We also need to take into account innovative companies that are upgrading their products and moving up the value chain along with companies whose activities address gaps in and whose operations are crucial to the supply or value chain or activities that would increase competition in the domestic market.”

Specifically we should consider a 5-10 year range of transition.  In the meantime, the GIE can also be brought up to 8% so there can be an immediate additional revenue that can help balance the planned reduction in Corporate Income Tax.

Monday, August 5, 2019

High-Impact Tech Startups Get Boost Rrom INQBATION Startup Showcase 2019


There is no problem too difficult for a plucky startup with a purpose.

Startups have gained increasing recognition for offering solutions to problems, and startups in the Philippines are no exception. Tech startups that are leveraging artificial intelligence (AI) and machine learning capabilities are also gaining ground, with some setting their sights on regional expansion even in the early years of their inception.

Kumu, a livestream and community platform, which only started last year, has exhibited an explosive 2000% growth rate since it started. The app has been downloaded almost one million times and is currently the only Filipino company to be included in Google Play’s Top 10 grossing social apps. Roland Ros, the company’s co-founder, shared that revenue has been exponentially growing 300% quarter on quarter, as it has found a way to monetize global Filipino millennial and Gen Z users. Hundreds of content creators are now earning part time income on the app as well, with a growing base of full-time creators earning as much as 50,000 pesos a month.

Senti, a data and sentiment analysis platform, started as a one-man university research project that sought to better understand local jargon and dialects. The company has since grown to become one of the most highly-recognized AI and natural language processing companies in the Philippines. Ralph Regalado’s brainchild is now home to half of the country’s Google Developer experts and is helping to create high-value tech jobs in the lucrative AI field in the Philippines. Senti has since expanded to Singapore and Malaysia because of its success.

Another startup that has made a positive impact is Investagrams, a social fintech platform which helps Filipinos invest in the stock market through in-app tutorials, virtual trading, social networking, and other tools designed to make investing in equities more accessible, easy and fun. Only three years old, Investagrams now has over 360,000 users. Investagrams caters not only to seasoned traders and investors but also to regular Filipinos, from millennials to retirees, and even overseas workers seeking to increase the value of their savings. The startup also regularly conducts programs on financial literacy and equities investing that has attracted thousands of participants, with the goal of increasing participation in the stock market among Filipinos (currently at less than 1%) to at least 5% in the next five years. The fintech startup founder and CEO John Christian Bisnar announced that the company is expanding to Singapore.

Kumu, Senti, and Investagrams, along with 12 other startups, are just some of the rising stars in the Filipino startup scene featured in INQBATION Startup Showcase 2019.

“The INQBATION Startup Showcase draws attention to awesome Filipino startups that are creating innovative and scalable solutions for real world problems, and we hope that investors, corporations and partners across the globe will take notice,” said Katrina Chan, Director of QBO. “The startups we featured today grew with QBO and J.P. Morgan through the INQBATION program and are creating tremendous impact. We’re glad to give them the spotlight they deserve and invite more partners to join us in uplifting our burgeoning local startup community.”

The event is organized by QBO Innovation Hub, a platform for the startup community to collaborate, develop talent, and grow, that was created through the joint effort of the Department of Science and Technology, the Department of Trade and Industry, IdeaSpace, and J.P. Morgan.

“It was a privilege and a pleasure to help create opportunities for these startups,” said Carlos Ma. G. Mendoza, Senior Country Officer for J.P. Morgan Philippines. “We are proud to have supported this program as it enabled small businesses and positively impacted underserved communities.”

“The vision for this program is for QBO and J.P. Morgan, as well as other partners, to open up more opportunities for startups and founders to grow,” explained Rene “Butch” Meily, President of QBO. “We want to give people who are creating scalable, positive impact through their startups a better shot at success.”

Meily added that by showcasing startups that have the potential to change lives as well as succeed as a business, they hope to get more companies and institutions to realize the value of supporting local startup ecosystem.


Aside from the startups mentioned, the showcase also featured AdMov, Cropital, Pushkart.ph, Exora, Learntalk, OneWatt, Payo, Lexmeet, Streetby, Washub, Container Living, and MAD Travel.

QBO said that it will continue to support startups in different ways including INQBATION, an acceleration program where the country’s most promising but underserved startup founders receive mentorship, training, exposure, resources and other support tailor fit to their needs. The INQBATION program was created in order to help highly promising Filipino tech startup companies scale up, fundraise and become globally competitive-- in the process generating jobs, developing the technology sector and creating impact.

QBO envisions more organizations becoming more involved with Filipino startup companies— whether as mentors, investors, or customers—and being able to help more local startups attain success.

For more information about the INQBATION Startup Showcase 2019, visit https://www.qbo.com.ph/incubation/.


About QBO

QBO (‘ku-bo’) is an innovation hub or a platform for the startup community to collaborate, develop talent, and grow. It provides startups with support and resources through events and capacity building programs as well as focused interventions designed to improve access to markets, knowledge, capital, and talent. QBO is the country’s first public-private initiative for startups, created through a partnership between IdeaSpace, J.P. Morgan, Department of Science and Technology, and Department of Trade and Industry.

Spurred on by the vision of Filipinos startups changing the world, QBO’s mission is to create a globally competitive startup ecosystem in the Philippines.

About JPMorgan Chase & Co.

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.5 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available atwww.jpmorganchase.com.

Friday, August 2, 2019

DTI: New Technologies Will Not Lead to Job Loss but Will Bring in New Types of Jobs, Better Productivity


Trade and Industry Secretary Ramon Lopez dispelled fears over possible job losses due to the emerging new technologies in various industries.

"Technology leads to innovation and new approach in doing things. It won’t always lead to loss of jobs but rather provide opportunities for the industry to increase productivity and introduce new high-paying jobs for Filipino workers. We should welcome it and be ready to adapt to this phase of industrialization. In fact, continuous innovation is needed if companies are to remain competitive," said Sec. Lopez.

The Department of Trade and Industry (DTI) chief acknowledged technology is essential to improve efficiencies, and productivity.  He also noted that upskilling is an important adaptive strategy for Filipino workforce to remain in demand in any type of business.

"People will have to be upskilled and retrained to upgrade their current skills and acquire new ones to remain relevant.  There are current programs integrating new skillset requirements with schools and training centers to prepare the students and the current workforce. Many companies also provide upskilling and retraining programs as well as apprenticeship opportunities," shared Sec. Lopez.

The trade chief emphasized that technology change is not just happening now as there have been different periods of industrialization-- from the first to the fourth Industrial Revolution-- where forms of jobs changed but the human labor market remained relevant and needed. This started with manual labor to produce things, leading into the advent of mass production and concepts of having production lines where workers learned how to run and work with machines.

Sec. Lopez underscored that when people worked with machines, jobs were not lost as it opened other areas of employment such as manufacturing, servicing, and maintenance of machines.

He cited the entry of automated teller machines (ATMs) in banks as an example, noting that there was a fear back then that bank tellers would lose their jobs. As of today, bank tellers are still present and needed with more value added functions, focusing on account management and customer service. Jobs were not lost since the ATMs also serve the transaction needs of customers 24/7, beyond office hours and tellers were not performing these tasks anyway. Thus, the use of ATMs provided greater customer service and better productivity.  Sec. Lopez added that the loading of cash in each ATM as well as its maintenance still require human labor.

The coming of internet and connectivity brought a lot of new opportunities in e-commerce, more buyer-seller platforms such as Airbnb, eBay, Grab, and tons of opportunities such as Youtube-ing, in game development and gaming, digital advertising and networking.

"The case of ATMs is the same with the advent of robots and mechanization, which usually perform repetitive, dangerous or high-precision jobs.  Humans are still needed to design, manufacture, program or train the system software and maintain the robots" Sec. Lopez added.

In the era of Artificial Intelligence (AI), chatbots and data analytics, the trade chief said that new skillsets are required. Many things are happening and bound to change. Some systems are now AI-enabled, making the jobs of people easier. But people are also the ones developing and maintaining the AI systems.

Upon consultation with AI industry experts, Dado Banatao and George Yang of AI-Pros, the DTI Secretary noted that the use of AI in the Business Process Outsourcing (BPO) industry is a win-win for both the industry and Filipino workforce. While AI is cost-effective for completing multiple tasks faster and with less error, it will also allow the human workforce to increase their competitiveness in performing tasks ranging from simple to complex within the same timeframe, which are high-value and high-paying tasks.

"By combining the sizeable Filipino workforce possessing the appropriate skills and talents with AI-powered technologies, the Philippines will be poised to be the AI-driven BPO capital of the world," said Sec. Lopez.

“We are now seeing people in the BPO industry operating AI-enabled systems, where previously rejected job seekers in BPOs are now finding themselves with more job opportunities to do simpler tasks in operating AI-enabled systems. We’ve seen BPO operations in Manila where AI and chatbots are the first line of contact of clients. However, these were managed by a human operator, who is also now capable of managing two or three simultaneous calls attended by the AI-enabled system,” shared the trade chief.

According to George Yang, AI also widens the reach of opportunities to the underprivileged, citing that even high school graduates, market workers, or street vendors can be trained to operate AI-enabled systems. The most vital requirement is just the ability to understand and speak English, which Filipinos are very good at.

"Such is an example where technology can even make the opportunities more inclusive.  Yes, there are challenges but there are more opportunities. Our education and training systems, including TESDA, are now offering training programs to enable our workforce to catch up on the new job trends and prepare them for the ever-changing technology. But we're confident that we can achieve this goal of creating job and employment opportunities that are more inclusive even in the future,” Sec. Lopez concluded.

Tuesday, July 30, 2019

Eton City: The Gateway to the South


In the last few years, an increasing number of people are moving into the peripheries of Metro Manila to settle into a more peaceful and less stressful suburban life. More and more offices and commercial centers are setting up in major growth corridors such as Laguna, Cavite, and Pampanga. However, this rapid urbanization also exponentially increased vehicular traffic in these rising districts. Because of this, finding a neighborhood that is centrally located and easily accessible from major road networks makes a meaningful and wise investment for those looking to purchase a property in these areas.


In Sta. Rosa, Laguna, Eton City makes a strong case for people who want to enjoy the benefits of living in a suburban community, like having access to wide and serene natural spaces, but still want to be close enough to the urban comforts and conveniences that surround the area. Before getting into the inner business districts and residential areas in Sta. Rosa, Eton City welcomes you to the South with its own exit along the South Luzon Expressway. It still offers a faster and safer route going to Tagaytay. With this exclusive exit, the Alabang CBD is approximately 25 minutes away and the Makati CBD about 45 minutes away.


Low-Density Residential Villages

Developed by Eton Properties Philippines, Inc., the real estate arm of the Lucio Tan Group, each village in Eton City takes inspiration from various architectural influences, creating premium-themed communities that give way to elegant living.

Combining unique homes, verdant surroundings, and open spaces in distinguished village concepts, Eton City is envisioned to be a vibrant and accessible community. Strategically located with easy access to education, business, and lifestyle hubs, the themed residences and premium amenities of West Wing Residences, TierraBela, Riverbend, and South Lake Village will be investments that grow as individuals, families, and communities do.

Friday, January 18, 2019

AXA Philippines Receives Visionary Award for MyAXA Café


AXA Philippines, one of the leading insurance companies in the country, recently received the Visionary Award from Vision Critical, an international firm that provides continuous customer intelligence to power companies with the collective wisdom of the people that matter to them. The winning entry was MyAXA Café, a branded online insight community that provides secure, ongoing, and real-time feedback from customers.

Created in partnership with global service providers ABN Impact and Vision Critical, MyAXA Café is designed to generate faster, research-driven insight to help improve customer service and enhance customer satisfaction and loyalty. It also helps AXA create new and better products that are responsive to the needs of customers, while supporting an ongoing, two-way dialogue with them.

MyAXA Café has now become a vital tool to guide customer-centric decision-making processes within AXA Philippines, across multiple departments and stakeholders that may use it as a first step to making business decisions.


“By understanding our customers better through MyAXA Café, we are then able to design even better solutions to improve constantly the delivery of a frictionless customer experience,” says Rahul Hora, AXA Philippines president and CEO.

MyAXA Café has already made a difference in customer engagement. Through messages from customers left on MyAXA Café, AXA Philippines launched an engaging and simplified online financial needs analysis tool called Coach Finn that can support customers with their financial game plan. Customers helped AXA Philippines identify the approach, tone, and persona that will solicit their engagement. By iterating feedback from MyAXA Cafe, Coach Finn was a guaranteed success.

MyAXA Café received earlier the Silver Award from the prestigious Efma-Accenture Innovation in Insurance Awards 2018. For more information, visit www.axa.com.ph.