Based on the recent findings of Citigroup, Inc., the growth domestic product (GDP) of the Philippines will grow at a lower-than-expected rate until 2025, according to a BusinessWorld news report.
To put things in perspective, posted below is an excerpt from the BusinessWorld news report. Some parts in boldface…
THE Philippines’ gross domestic product (GDP) is likely to expand slower than the government’s target until 2025, Citigroup, Inc. (Citi) said.
Citi cut its GDP growth forecast for the Philippines to 5.8% this year but kept its 6% growth forecast for 2025. This is below the government’s 6-7% target this year and 6.5-7.5% goal next year.
“We lowered 2024 GDP growth slightly from 6% to 5.8%, mainly due to a weak third-quarter outturn that had been a result of several temporary, weather-related factors,” Citi economist for Thailand and the Philippines Nalin Chutchotitham said in a report.
The Philippine economy slowed to 5.2% in the July-to-September period from 6.4% in the second quarter and 6% a year ago. This was also the weakest growth since the 4.3% expansion in the second quarter of last year.
“Nonetheless, we think it would be misleading to view the weaker third-quarter expansion as the start of a slowdown as several negative factors in the third quarter are one-off events,” Ms. Chutchotitham said.
She said the weakness in third-quarter economic growth mainly stemmed from the drop in agriculture production, construction activity and net exports.
Despite the weak third quarter, Citi expects growth to accelerate in the fourth quarter as domestic demand is seen to pick up due to easing inflation and lower rates.
“We expect fourth-quarter 2024 GDP growth to accelerate to 6% year on year. Household consumption is expected to continue improving, supported by lower interest rates and improved consumer sentiment as inflation continues to stabilize.”
In the first nine months, GDP grew by 5.8%. The economy would need to grow by at least 6.5% in the fourth quarter to meet the lower end of the government’s 6-7% target.
“With the storm season passing soon, we also expect infrastructure projects’ progress to proceed at a faster clip in the fourth quarter and first quarter of 2025,” Ms. Chutchotitham said.
Domestic demand will also likely be sustained by improving employment conditions, remittance growth and bank lending.
“The RRR (reserve requirement ratio) cut of 250 basis points (bps), effective on Oct. 25, would also release more liquidity into the banking system and likely continue to support strong credit expansion,” Ms. Chutchotitham added.
The central bank last month reduced the RRR for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 250 bps to 7%.
“We also maintain our expectation of 6% growth in 2025 but see some upside risks due to tailwinds from more rate cuts,” Citi said.
The Bangko Sentral ng Pilipinas (BSP) will likely cut by 25 bps in December and by a total of 75 bps next year, according to Citi.
This year so far, the central bank has reduced interest rates by 50 bps since August. The Monetary Board is set to hold its last rate-setting meeting of the year on Dec. 19.
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the economy of the Philippines still has enough momentum to exceed the 4th quarter growth targets of economists?
Disclaimer: This is my original work with details sourced from my personal experiences and observations during the Israel pilgrimage tour I joined and what happened during my free time. Anyone who wants to use this article, in part or in whole, needs to secure first my permission and agree to cite me as the source and author. Let it be known that any unauthorized use of this article will constrain the author to pursue the remedies under R.A. No. 8293, the Revised Penal Code, and/or all applicable legal actions under the laws of the Philippines.
Welcome back, readers and fellow followers of the Lord! This is the 9th chapter of my ongoing series of articles about the holy nation of Israel with recollections about the experiences and discoveries I had during the pilgrimage tour I joined with my local church (hosted by strategic partner Behold Israel). To see my previous Israel tour articles, click here, here, here, here, here, here, here and here. No matter what happens in this world, I will always stand with Israel and my faith in the Lord remains uncompromising!
In this latest edition of my Israel 2023 series, I share with you one of the things I did during the one and only day-off (February 15, 2023) of our pilgrimage tour. This was the day I visited the Temple Mount, revisited the Western Wall and the Upper Room, and visited the grave of Oskar Schindler. After Schindler, I marched all the way from the Old City to the modern parts of Jerusalem. I had a stopover at Tmol Shilshom to recover before proceeding to Mahana Yehuda Market where I had lunch at Shakshuka Machaneh Yehuda.
During my time at Mahane Yehuda, the cold weather intensified (cloudy and slightly raining). I knew that the heat I got from consuming my lunch would not last long. Suddenly, I remembered what I had been planning to do…visit Power Coffeeworks.
I first learned about Power Coffeeworks on social media while preparing for the trip to Israel some months prior. I checked out what drinks they offered and I knew I had to visit them and enjoy something.
So there I was walking through the crowd at the roofed section of Mahane Yehuda. Remembering what I studied from Google Maps, I went on until I reached a certain road, crossed it and made my way to the commercial building where Power Coffeeworks was located at.
I remember smiling upon arrival outside of Power Coffeeworks as it was my intention to visit and try their coffee.
For the first several moments upon arrival, I examined Power Coffeeworks’ physical set-up, the menu and the local vibe as there were customers who arrived ahead of me. I also noticed that inside are lots of products for sale such as coffee beans, Pumpking Spice, tea and more.
After reading the menu, I went on to order a hot Macchiato as I really needed heat and energy to endure the cold weather. Then I noticed a vacant table and chairs located close to the heater. So I went there to take a seat, enjoyed my hot Macchiato and used the free WiFi (password shared to me at the counter moments earlier) with the comforting heat from the heater. I even had a short chat with one of the coffee joint’s employees as he cleaned the table.
From my early moments at Power Coffeeworks. I like the vibe of the place.
For more than half an hour, I sat there enjoying my coffee, the place, checking updates online and re-energized myself because I planned to return to Mahana Yehuda one last time for treats before marching all the way back to our Jerusalem hotel. My feet were a bit sore by the time I arrived at the coffee joint.
Some of you reading this might be wondering what Power Coffeeworks is and why was I so interested with it. Personally, I really pursued buying (and enjoying) goods of local businesses in Israel. When it comes to coffee, I never thought about the international brands during my time in Israel as I went for Israeli enterprise.
That’s a nice display of products at Power Coffeeworks!
As for Power Coffeeworks, it describes itself as follows:
Power was inspired by the lack of excellent roasted coffee within Jerusalem. With its awesome steampunk vibe and amazing aroma, it is the perfect location for working, reading a book, spending time with friends or chatting with our amazing baristas.
Our coffee is roasted fresh daily, ground per cup and served with a huge amount of love. We are all about the taste, flavor, vibe and not to forget – the music.
Stephanie and Brandon, the owners made aliyah from Cape Town, South Africa in 2016 with their four children to Efrat, Gush Etzion. With their extensive knowledge of the hospitality industry, they decided to open Power Coffeeworks, an anglo orientated coffee roastery in Machane Yehuda Shuk.
Five years later, Power is exactly what they wanted it to be. Despite the struggles of starting a new business in a new country, Stephanie and Brandon took the coffee culture of Jerusalem to a whole new level. After three more children, Covid19 and a whole load of drama. Power coffeeworks has grown to be the number one location in Jerusalem for the best cup of coffee and an unbelievable section of coffee beans.
After spending time at Power Coffeeworks, I left as a satisfied and a happy customer. I would not hesitate to revisit the coffee joint once I return to Israel someday. I am deeply thankful to the Lord for the enterprise of Power Coffeeworks and everything else about the entire Israel pilgrimage tour I joined with my local church.
This leads to my next point: always be thankful to the Lord for the blessings you enjoyed as He is our source and the definitive provider. All the praise and glory is to Him. Learn from the holy scriptures below…
Therefore, whether you eat or drink, or whatever you do, do all to the glory of God.
1 Corinthians 10:31 (NKJV)
And my God shall supply all your need according to His riches in glory by Christ Jesus. 20 Now to our God and Father be glory forever and ever. Amen.
Philippians 4:19-20 (NKJV)
For from Him and through Him and to Him are all things. [For all things originate with Him and come from Him; all things live through Him, and all things center in and tend to consummate and to end in Him.] To Him be glory forever! Amen (so be it).
Romans 11:36 (AMPC)
“Blessed is the man who trusts in the Lord,
And whose hope is the Lord.
For he shall be like a tree planted by the waters,
Which spreads out its roots by the river,
And will not fear when heat comes;
But its leaf will be green,
And will not be anxious in the year of drought,
Nor will cease from yielding fruit.
Jeremiah 17:7-8 (NKJV)
Never forget that Israel is the land that God the Heavenly Father designated to the Jewish people and He always has great plans for them. As people of faith, we should do our part to love and bless the Jewish people. Also remember that the ties between Jews and Christians are biblical. Read the scriptures below…
Now the Lord had said to Abram:
“Get out of your country,
From your family
And from your father’s house,
To a land that I will show you.
I will make you a great nation;
I will bless you
And make your name great;
And you shall be a blessing.
I will bless those who bless you,
And I will curse him who curses you;
And in you all the families of the earth shall be blessed.”
Genesis 12:1-3 (NKJV)
Again God said to him, Your name is Jacob [supplanter]; you shall not be called Jacob any longer, but Israel shall be your name. So He called him Israel [contender with God].
And God said to him, I am God Almighty. Be fruitful and multiply; a nation and a company of nations shall come from you and kings shall be born of your stock;
The land which I gave Abraham and Isaac I will give to you, and to your descendants after you I will give the land.
Genesis 35:10-12 (AMPC)
Now therefore, if you will obey My voice in truth and keep My covenant, then you shall be My own peculiar possession and treasure from among and above all peoples; for all the earth is Mine.
And you shall be to Me a kingdom of priests, a holy nation [consecrated, set apart to the worship of God]. These are the words you shall speak to the Israelites.
Exodus 19:5-6 (AMPC)
No longer shall your name be called Abram, but your name shall be Abraham, for I have made you the father of a multitude of nations. I will make you exceedingly fruitful, and I will make you into nations, and kings shall come from you. And I will establish my covenant between me and you and your offspring after you throughout their generations for an everlasting covenant, to be God to you and to your offspring after you. And I will give to you and to your offspring after you the land of your sojournings, all the land of Canaan, for an everlasting possession, and I will be their God.”
And God said to Abraham, “As for you, you shall keep my covenant, you and your offspring after you throughout their generations.”
Genesis 17:5-9 (ESV)
Say therefore to the people of Israel, ‘I am the Lord, and I will bring you out from under the burdens of the Egyptians, and I will deliver you from slavery to them, and I will redeem you with an outstretched arm and with great acts of judgment. I will take you to be my people, and I will be your God, and you shall know that I am the Lord your God, who has brought you out from under the burdens of the Egyptians. I will bring you into the land that I swore to give to Abraham, to Isaac, and to Jacob. I will give it to you for a possession. I am the Lord.’”
Exodus 6:6-8 (ESV)
“Yet hear now, O Jacob My servant,
And Israel whom I have chosen.
Thus says the Lord who made you
And formed you from the womb, who will help you:
‘Fear not, O Jacob My servant;
And you, Jeshurun, whom I have chosen.
For I will pour water on him who is thirsty,
And floods on the dry ground;
I will pour My Spirit on your descendants,
And My blessing on your offspring;
They will spring up among the grass
Like willows by the watercourses.’
One will say, ‘I am the Lord’s’;
Another will call himself by the name of Jacob;
Another will write with his hand, ‘The Lord’s,’
And name himself by the name of Israel.
Isaiah 44:1-5 (NKJV)
“Now, show the people the pieces of wood you have written on, and tell them, ‘Lord Yahweh says this: I will gather the Israelites from the nations where they have gone. I will gather them together from everywhere and bring them to their homeland. And I will make them into a single nation in the mountainous land of Israel and give them one king to be king over them all. They will never again be divided into two nations nor split into two separate kingdoms.
Ezekiel 37:20-22 (TPT)
For God so greatly loved and dearly prized the world that He [even] gave up His only begotten (unique) Son, so that whoever believes in (trusts in, clings to, relies on) Him shall not perish (come to destruction, be lost) but have eternal (everlasting) life.
John 3:16 (AMPC)
Jesus said to him,
“I am the way, the truth, and the life. No one comes to the Father except through Me.
“If you had known Me, you would have known My Father also; and from now on you know Him and have seen Him.”
John 14:6-7 (NKJV)
And He took bread, gave thanks and broke it, and gave it to them, saying,
“This is My body which is given for you; do this in remembrance of Me.”
Likewise He also took the cup after supper, saying,
“This cup is the new covenant in My blood, which is shed for you.”
Luke 22:19-20 (NKJV)
Conclusion
The view from my table.
I would love to return to Power Coffeeworks once I return to Jerusalem in the years to come. Only the Lord know when that time will be. No matter what happens, my faith in the Lord will never be compromised. To those of you who are interested to discover Power Coffeeworks and find out what products they offer, I encourage you to visit their official website at https://www.powercoffeeworksjerusalem.com/. Remember that once you make it to the Mahane Yehuda market, this nice coffee joint is just a short walk away.
Israel is a great and holy place to visit! Visit Israel with the Holy Bible! Pray to the Lord wholeheartedly and reveal to Him your heart’s desire to visit Israel to deepen your faith in Him. Always be the fearless and aggressive church of Lord Jesus! Follow the light of Lord Jesus, keep on praying to support Israel and for the peace of Jerusalem. Live on with uncompromising faith in Him!
Watch out for more Israel 2023 travel articles here. There is more to come!
Recently in the City of Las Piñas, business woman and candidate Alelee Aguilar-Andanar expressed her support for the P103.8 billion Las Piñas-Parañaque Coastal Bay Reclamation Project and reached out to President Ferdinand “Bongbong” Marcos and the Department of Environment and Natural Resources (DENR) to support it as well so that socio-economic developments in the city will happen, according to a Manila Standard news report.
For the newcomers reading this, Aguilar-Andanar is the daughter of incumbent Mayor Imelda Aguilar and the late Mayor Vergel “Nene” Aguilar.
To put things in perspective, posted below is an excerpt from the Manila Standard news report. Some parts in boldface…
A daughter of Las Piñas Mayor Imelda Aguilar expressed support for the resumption of the P103.8-billion Las Piñas-Parañaque Coastal Bay Reclamation Project as it would generate billion of income to the city’s coffer.
Businesswoman Alelee Aguilar-Andanar appealed to President Ferdinand Marcos Jr. and Department of Environment and Natural Resources Secretary Antonia Yulo-Loyzaga to sign the notice to proceed of the project as this would create thousands of local jobs, realize pro-poor projects, including socialized housing.
Aguilar-Andanar, who is running for councilor for next year’s election, is the third daughter of the late Las Pinas Mayor Vergel and incumbent Mayor Imelda. Alelle is the wife of former Presidential Communications Operations Office (PCOO) Secretary Martin Andanar.
Aguilar-Andanar said the reclamation project is a dream and aspiration of her late father who served as mayor of Las Piñas City from 1995 to 2004 and from 2007 to 2016.
She said (her) father’s vision is to keep pace with modern development. “If we don’t keep up or if we don’t devise a way (to generate income), it will become more difficult for the next generation,” said Aguilar-Andanar, quoting her father. She said (her) father wanted to call the reclamation project Las Piñas, Our Home 2.0.
Aguilar-Andanar said her family would join forces with incumbent councilors Mark Anthony Santos and Henry Medina in convincing their constituents on the benefits of the reclamation projects which could help restore ecosystems, create habitats for wildlife and mitigate flooding.
Let me end this piece by asking you readers: If you are a resident of Las Piñas City, what is your reaction to this development? Do you think that now is the time to have the reclamation project approved so that Las Piñas will further develop economically and socially? Do you think that land reclamation only results in flooding and environmental damage? How many people in your local community are aware of the P103.8 billion Las Piñas-Paranaque Coastal Bay Reclamation Project? Will you vote Aguilar-Andanar for City Councilor in May 2025?
For more South Metro Manila community news and developments, come back here soon. Also say NO to fake news, NO to irresponsible journalism, NO to misinformation, NO to plagiarists, NO to reckless publishers and NO to sinister propaganda when it comes to news and developments. For South Metro Manila community developments, member engagement, commerce and other relevant updates, join the growing South Metro Manila Facebook group at https://www.facebook.com/groups/342183059992673
In a move to make the Philippines a prime investment destination, President Ferdinand “Bongbong” Marcos, Jr., recently signed into law the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, according to a Philippine News Agency (PNA) news article.
To put things in perspective, posted below is an excerpt from the PNA news article. Some parts in boldface…
President Ferdinand R. Marcos Jr. on Monday signed the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act to promote the Philippines as a prime investment destination.
CREATE MORE Act or Republic Act (RA) 12066, signed by Marcos in a ceremony at Malacañan Palace in Manila, builds on the game-changing economic reforms introduced under the CREATE law by making the country’s tax incentives regime more globally competitive, investment-friendly, predictable and accountable.
Marcos said the signing of RA 12066 signifies his administration’s unwavering commitment to empowering the business sector and enhancing their growth prospects.
“We cannot emphasize enough the important role of the business sector in shaping this law. Your feedback has been essential in our efforts to craft policies that make our country truly competitive on the global stage,” Marcos said.
“As we open new doors of opportunity, we drive businesses to reinvest their capital, build upon the workforce, and initiate a ripple effect that will be felt across generations,” he added.
Marcos said the new law is a reflection of the government’s resolve to foster a climate where businesses will flourish and continue to meaningfully contribute to the Philippine economy.
“By establishing clear timelines and deadlines and by limiting compliance requirements to those mandated by law, we are promoting transparency and predictability. And in so doing, we create a more reliable process that instills confidence in investors and in partners alike,” he said.
“To our investors and development partners, let this be our pledge: The Bagong Pilipinas (New Philippines) continues to foster an economy where businesses and investments remain at the heart of our progressive development.”
Under the CREATE MORE Act, the maximum duration of tax incentives availment is extended by 10 years to 27 years from 17 years, to attract strategic and high-quality investments.
Registered business enterprises (RBEs) under the enhanced deductions regime will benefit from a reduced corporate income tax rate of 20 percent.
The new law also grants a 100-percent additional deduction on power expenses to cut the costs for the manufacturing sector.
It also further streamlines the value-added tax (VAT) refund process by limiting the documentary requirements and addressing the VAT concerns raised by export-oriented enterprises.
RA 12066 also introduces various reforms such as the rationalization and streamlining of incentives-related processes to address investors’ pain points and cultivate an investment-friendly climate.
It likewise simplifies local taxation by imposing a local tax on RBEs in lieu of all other local taxes, fees, and charges.
The CREATE MORE law also strengthens the respective mandates of the Fiscal Incentives Review Board (FIRB) and the investment promotion agencies (IPAs).
It institutionalizes the adoption of flexible work arrangements as a business model for RBEs operating inside economic zones and freeports, without disruption in the enjoyment of their tax incentives.
Marcos said the Filipino people would benefit from the passage of the CREATE MORE Act through more and better economic opportunities that uplift their lives, such as high-quality jobs.
The signing of CREATE MORE law is consistent with the Marcos administration’s 8-point socioeconomic agenda.
Lawmakers lauded President Marcos for signing the measure, saying it would stimulate economic growth by attracting foreign direct investments (FDIs).
“With more foreign direct investments that CREATE MORE is expected to generate, more Filipinos will have better employment opportunities that will, in turn, redound to stronger domestic consumption, one of the major drivers of the local economy,” Senator Sherwin Gatchalian said in a statement.
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the CREATE MORE law will succeed in attracting more foreign investments into the Philippines? Do you expect to see results related to the new law over the next eighteen months?
For more South Metro Manila community news and developments, come back here soon. Also say NO to fake news, NO to irresponsible journalism, NO to misinformation, NO to plagiarists, NO to reckless publishers and NO to sinister propaganda when it comes to news and developments. For South Metro Manila community developments, member engagement, commerce and other relevant updates, join the growing South Metro Manila Facebook group at https://www.facebook.com/groups/342183059992673
Recently it was announced that the inflation rate of the Philippines for October 2024 settled at 2.3%, according to a Philippine News Agency (PNA) news article. By comparison, the nation’s inflation rate was at 4.9% in October 2023.
To put things in perspective, posted below is an excerpt from the PNA news article. Some parts in boldface…
Inflation continued to settle within the government’s 2 to 4 percent target despite a slight uptick in October this year.
In a briefing on Tuesday, National Statistician Dennis Mapa said headline inflation during the month was at 2.3 percent, slightly higher than the 1.9 percent recorded in September this year. Inflation in October last year, however, was higher at 4.9 percent.
The latest data brings the national average inflation rate from January to October 2024 to 3.3 percent.
Mapa said the higher inflation in October was primarily influenced by the faster increase in food and non-alcoholic beverages at 2.9 percent from 1.4 percent in September 2024.
Despite the increase, the National Economic and Development Authority (NEDA) and the Bangko Sentral ng Pilipinas (BSP) are optimistic that inflation will remain within target this year.
“The latest inflation figures confirm that we are on track to keep inflation within target. The government is fully committed to ensuring price stability and protecting Filipino households from undue shocks,” NEDA Secretary Arsenio Balisacan said in a statement.
Balisacan assured the public that while recent weather disturbances posed challenges to the country’s food supply and logistics, the government will work “relentlessly to keep food available and prices steady, particularly for essential commodities.”
“With targeted support and streamlined food supply chains, we aim to ensure that food is affordable and accessible for Filipino families, especially those most vulnerable to price shocks when disasters hit us,” Balisacan said.
To mitigate the impact of natural disasters, Balisacan said the Department of Social Welfare and Development is implementing the Building on Social Protection for Anticipatory Action and Response in Emergencies and Disasters Program.
The program provides social safety nets and capacity-building measures to support affected communities.
The Philippine Atmospheric, Geophysical, and Astronomical Services Administration earlier forecast that La Niña will persist until the first quarter of 2025, with two to eight tropical cyclones expected to affect the country until April 2025.
“The President has mobilized all of government to ensure relief efforts are comprehensive and delivered on time. In addition, he has directed us to craft a robust solution to build the resilience of families and communities amid the onslaught of severe typhoons,” Balisacan said.
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the inflation rate of the nation will end up between 2% to 4% for the final two months of the year?
To put things in perspective, posted below is an excerpt from the Manila Bulletin news report. Some parts in boldface…
US-based tech giants are worried that the 12-percent value-added tax (VAT) to be collected from digital services providers (DSPs), plus more stringent rules on internet transactions under two new Philippine laws, could make it harder for global firms to operate here.
While this law imposing VAT on DSPs does not discriminate between US non-resident DSPs (or other foreign DSPs) and local DSPs, industry is concerned that (its) implementing rules and regulations, which are currently being developed, could impose unworkable requirements on foreign DSPs similar to what has happened for [non-resident] income-tax payers,” the Washington, DC-based Computer and Communications Industry Association (CCIA) told the Office of the United States Trade Representative (USTR) in an Oct. 17 submission for its 2025 National Trade Estimate (NTE) Report on Foreign Trade Barriers, which also covers digital trade.
CCIA is referring to Republic Act (RA) No. 12023 enacted into law by President Ferdinand R. Marcos Jr. last October, whose implementing guidelines are due before this year ends in order to collect VAT next year.
CCIA’s member-companies include Amazon, Apple, Cloudflare, Coupang, eBay, Google, Intel, Meta, Opera, Pinterest, Rakuten, TSMC, Uber and X (formerly Twitter), among other global tech firms.
Arlington, Virginia-based Consumer Technology Association (CTA) also flagged RA 12023 as a barrier to US electronic commerce in its USTR submission, citing that this new Philippine law encompasses not only digital goods and marketplaces but also cloud services as well as online advertising, media and search engines.
Back in 2021, the Washington-based multilateral lender International Monetary Fund (IMF) warned that slapping digital services taxes (DSTs) may “open the door to retaliatory trade measures” from the US, as it did with India’s DST.
CCIA pointed out to the USTR that implementation of the Income Tax Convention of 1976, in which both the Philippines and the US are parties, has been “challenging” due to “complex and burdensome documentation procedures” or so-called request for confirmation (RFC) required by the Bureau of Internal Revenue (BIR) from income taxpayers.
“The BIR has not established standard processing timelines, and businesses are subsequently required to wait indefinitely without any commitment toward a resolution of the filing. These requests are required of all US non-resident service providers operating in the Philippines and, therefore, this policy is not limited to digital services and impacts members of all industries seeking to provide their services and goods to the Philippine market,” CCIA noted.
CCIA added that the BIR revenue memorandum circular (RMC) issued in January of this year “added further confusion to income-tax obligations of non-resident suppliers of cross-border services.”
Referring to RMC No. 5-2024, CCIA said it “appears to depart from established principles of income taxation of cross-border services (using the place where the services are performed to determine if the transaction is income-taxable) and treats the place of receipt of the services as being crucial in determining the taxability of the transaction.”
As such, CCIA called upon the Philippine government and the BIR, in particular, to hold comprehensive industry consultations, “including with US non-resident service providers, to clarify the income-tax position under Philippine law in line with well-recognized and established international practices.”
Like CCIA, the also Washington-based National Foreign Trade Council (NFTC) bewailed in its comment to the USTR that “there is significant ambiguity on how long the BIR will take to review the RFC and there is no guarantee of a positive outcome.”
“Such requests have to be made by each and every income payor (customers) of US non-resident service providers selling to the Philippines,” NFTC lamented.
Also, CCIA expressed concern about the Internet Transactions Act signed by President Marcos Jr. last year.
“Industry is concerned that the [Internet Transactions Law] would introduce obstructive requirements on electronic commerce platforms to have regulatory oversight such as mandatory collection of valid business certificates of merchants and subsequent submission to the government authority,” CCIA explained
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the national government should respond to the concerns of the CCIA? Do you think the digital tax and current laws will turn away technology giants?
Welcome back, my readers, YouTube viewers and all others who followed this series of articles focused on YouTube videos worth watching. Have you been searching for something fun or interesting to watch on YouTube? Do you feel bored right now and you crave for something to see on the world’s most popular online video destination?
I recommend you check out the following topics and the related videos I found.
#1. Microsoft’s Project Milo – When Microsoft introduced the Kinect motion-sensing device (then called Project Natal) during the 2009 edition of E3 (Electronic Entertainment Expo), they had Peter Molyneux introduce Project Milo which really intrigued viewers. Even though the video presentation of Project Milo was scripted, it showed its potential as an interactive software using Kinect on Xbox 360. There are lots of details behind the scenes as Project Milo really was a project developed by Lionhead Studios which worked in a limited fashion and ended up never getting released. Watch and learn from the video below.
#2. The story of The Hershey Company and its founder – Do you often eat chocolate bars of Hershey’s? The Hershey Company is gigantic with a global presence of products, billions of Dollars in annual revenue, the operation of Hershey’s Chocolate World and even a theme park of its own called Hersheypark. Hershey’s was started by its founder Milton S. Hershey who came from a really difficult life. You can learn more about the founder and how The Hershey Company came to be by watching the video below.
#3. The kids who hacked Xbox – You do know that hacking is illegal and there is simply no excuse to do it. Believe it or not, Xbox got hacked by a group of very young gamers and they even got themselves an early build of the blockbuster game Gears of War 3. Not only that, the group also hacked many other gaming-related companies. Watch and learn from the video posted below.
#4. The Democrats are the problem for Americans – Apart from being a very corrupted political party, the Democrats are guilty of hypocrisy, lying, censorship, and distorting the facts to suit themselves. Now they have Communist Kamala Harris as their candidate for US President and that only means the party wants more of the same negative elements under Joe Biden to continue. This explanatory video shows exactly what went wrong under Biden and the Democrats, why the Democrats are not the party of common sense and why Kamala Harris is wrong for the nation’s future.
#5 Donald Trump’s Never Quit video – The 2024 US Presidential election is about to happen. In recent times, the campaign of Donald Trump released the Never Quit video which is a lot more than just political advertising. It is a stark reminder of how much life in America turned for the worse under the Biden-Harris administration. Remember the tax cuts and other reforms Trump approved as US President which really made America stronger and greater? Watch the video below and share it to others. This is about making America great again.
#6. Minty Comedic Arts’ Innerspace video – I first saw the 1987 sci-fi adventure movie Innerspace on home video. Starring Dennis Quaid, Martin Short and Meg Ryan, it was an entertaining film that had a nice mix of adventure, comedy and spectacle. Recently, Minty Comedic Arts published a trivia video about it which is fun to watch.
#7. You, Me and the Movies react to Night of the Creeps – Some of you might be aware that I enjoyed watching the 1986 mix-genre film Night of the Creeps. It was the directorial debut of Fred Dekker and it was clever blend of science fiction, horror, 1950s romance, 1980s teen comedy and detective storytelling. Recently You, Me and the Movies posted their video reaction which I find enjoyable.
#8. Beneath the Planet of the Apes examined and analyzed closely – Released in 1970, Beneath the Planet of the Apes was the sequel to the classic film Planet of the Apes. While it is easy to think that the sequel was made simply because the movie studio wanted to make more money by capitalizing on the success of the previous film, there was a lot of developments, twists and even intrigue that happened behind the scenes before filming even started. The two videos below from YouTuber Represent This should be seen and for those who have seen Beneath the Planet of the Apes, it will impact your perception about the movie’s quality and creative direction.
Before I end this post, I should say that the concept of humans evolving from apes is pure fantasy. The scientists and fantasy writers got it all wrong.
Recently, an economist predicted that the economy of the Philippines will keep growing above 6% this year and next year, according to a Philippine News Agency (PNA) news article.
To put things in perspective, posted below is an excerpt from the PNA news article. Some parts in boldface…
The Philippine economy is expected to remain one of the fastest growing economies in the region, with growth likely settling at above 6 percent for 2024 and 2025.
In his economic and market outlook released on Tuesday, BPI senior vice president and lead economist Emilio Neri Jr. said economic growth will likely hit 6.1 percent this year and further accelerate to 6.3 percent in 2025.
“The Philippine economy has been resilient despite significant headwinds like severe El Niño and devastating typhoons, still managing to grow by 6% in the first half of 2024,” Neri said.
“Looking ahead, the Philippine economy will likely continue to outperform in the region, supported by its strong consumer base,” he added.
Neri expects headline inflation to ease to 3.2 percent in 2024 and further decelerate to 2.8 percent in 2025.
“Inflation is expected to be more manageable in the coming year given the improving prospects of food supply. With El Niño now behind us and the potential increase in production, along with tariff reductions, rice may become more affordable,” he said.
Neri said lower inflation may help boost consumption in the coming year, while election-related spending could also further stimulate economic activity.
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the economy of the Philippines has enough momentum to exceed the growth forecasts of the economists for 2024 and beyond? Do you think the Philippines can do a better job on attracting more foreign investors soon?
If things go well, the recent deal made between Ayala Corp. and Japan’s Mitsubishi Corp. will likely boost the anticipated initial public offering (IPO) of e-wallet entity GCash, according to a BusinessWorld news report referencing analysts.
To put things in perspective, posted below is an excerpt from the BusinessWorld news report. Some parts in boldface…
THE RECENT deal between Ayala Corp. and Japan’s Mitsubishi Corp. is likely to increase the valuation of the anticipated initial public offering (IPO) of the electronic wallet GCash, according to analysts.
On Friday last week, Ayala Corp. announced that it was selling its 50% stake in AC Ventures Holding Corp. (ACV) to Mitsubishi for a minimum of P18.4 billion.
ACV owns 13% of Globe Fintech Innovations, Inc. (Mynt), which has two fintech companies, G-Xchange Inc., the operator of GCash, and Fuse Lending, a tech-based microlender.
“The deal reinforces the value of Mynt for its future IPO. With key investors coming in at a valuation of around $5 billion, Mynt is poised for an IPO at a much higher valuation,” Chinabank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.
GCash previously said it was planning an IPO but would wait for a more favorable market.
According to Mr. Colet, the IPO could happen as early as next year depending on market conditions.
“I can see the IPO within the next two to three years. Perhaps as soon as next year if market conditions are very good,” he said.
“So far, it seems Globe wants a local IPO for Mynt. But it would be better if they do a dual listing in the Philippines and a larger stock market to get the best of both worlds,” he added.
Globalinks Securities and Stocks, Inc. Trader Mark V. Santarina said in a Viber message that the deal helps GCash’s international expansion plans.
GCash services are available in 16 countries, including the United States, United Kingdom, United Arab Emirates, Italy, Australia, Canada, Germany, and other Asian countries.
“For GCash, Mitsubishi’s entry paves the way for potential international expansion, particularly into Japan, and may boost its service offerings in microlending and financial technology,” he said.
“While GCash is considering overseas listings for its IPO, there is still hope it may choose to list on the Philippine Stock Exchange (PSE) instead, which would be a significant win for the local market,” he added.
AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message that the deal could help improve other Ayala ventures.
“With its entry into ACV, Mitsubishi is not only buying into GCash but also into other ventures under ACV like Gogoro and Zalora. We believe Mitsubishi’s expertise can help improve these businesses and maybe even accelerate the expansion of GCash into Japan,” he said.
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think an IPO of GCash could happen sometime in 2025? Are you an investor waiting for the GCash IPO to happen?
BPI Wealth – the wealth management arm of the Bank of the Philippine Islands (BPI) – will establish a new mutual fund to lure in young and tech-savvy investors, according to a Manila Bulletin business news report.
To put things in perspective, posted below is an excerpt from the Manila Bulletin news report. Some parts in boldface…
Amid favorable conditions for long-term investments, the wealth-management arm of Ayala-led Bank of the Philippine Islands (BPI) will roll out before this year ends a new mutual fund eyeing young and tech-savvy investors.
BPI Wealth personal wealth head Irene Ang told a press briefing on Friday, October 18, that the forthcoming BPI Wealth Builder Multi-Asset Mutual Fund Inc. isexpected to be approved “soon” by the Securities and Exchange Commission (SEC), which regulates mutual funds, for it to be sold to the public.
This first-of-its-kind balanced, global-based and peso-subscription and -redemption fund aims to convince millennials and the Gen X generation in the country to invest and prepare for their retirement, Ang said.
Among the innovative and unique features of this mutual fund include availability for a minimum of only P1,000; accessibility on BPI’s online platforms and accredited channels to conveniently open an investment account, monitor investments, and receive cumulative rewards and benefits at no extra cost; as well as an automated and automatic top-up system allowing additional investments of at least P100 monthly.
Ang is optimistic that up to P1-billion investments in their upcoming newest mutual fund would be “easy.”
BPI Wealth president and chief executive officer (CEO) Maria Theresa D. Marcial noted that among their investors, those who onboarded via digital channels continued to engage more regularly than branch-opened accounts.
“We should push more into digital initiatives,” said Marcial, who is spearheading BPI’s “Wealth Wellness Month” this October to promote financial inclusion and literacy as well as opportunities for small investors.
Marcial disclosed that as of end-September, BPI Wealth’s assets under management (AUM) rose to a new high of P1.4 trillion, from P1.2 trillion in end-2023.
On top of the earlier goal of 20-percent AUM increase for this year, Marcial said a further 15-percent growth next year will be “reasonable.”
BPI Wealth targets P3 trillion in AUM by 2026.
Marcial cited that while mutual funds and other assets experienced a roller-coaster ride of ups and downs during the past three years due to global financial conditions, the clarity in the ongoing monetary policy easing here and abroad this year has improved prospects.
“We’re seeing markets becoming more buoyant, and fund managers are becoming more constructive across asset classes,” she said.
“Bonds are expected to do better, as interest rates go lower. And because interest rates are lower… so [in] equity we’re seeing some renewed interest,” she added.
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think BPI Wealth’s newest move makes a lot of sense with today’s economic environment? Do you think a lot of millennials are willing to engage in investments?
Author Carlo Carrasco 