Tag: YES to commerce

UA&P Sees Stronger Q3 Economic Growth for the Philippines Despite Trump Tariffs

UA&P Sees Stronger Q3 Economic Growth for the Philippines Despite Trump Tariffs

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As far as the University of Asia and the Pacific (UA&P) is concerned, the economy of the Philippines will still grow stronger in the 3rd quarter by 5.8% despite the 19% Trump tariffs, according to a BusinessWorld news report.

To put things in perspective, posted below is an excerpt from the news report of BusinessWorld. Some parts in boldface…

PHILIPPINE economic growth may pick up in the third quarter despite higher US tariffs and “milder” typhoons, the University of Asia and the Pacific (UA&P) said.

“Despite the Trump tariffs, milder typhoon season will help accelerate GDP expansion in Q3 to 5.8%, given a low base in 2024,” it said in its latest The Market Call released on Friday.

If realized, this would be faster than 5.2% in the third quarter of 2024 and 5.5% print in the second quarter. This forecast is also within the government’s revised 5.5% to 6.5% target this year.

“Consumer spending remains strong, aided by low inflation but limited by new US taxes on OFW (overseas Filipino Worker) remittances,” UA&P said.

Inflation cooled to a near six-year low of 0.9% in July as utilities and food costs continued to ease. This brought the seven-month average to 1.7%, slightly below the Bangko Sentral ng Pilipinas’ (BSP) 2-4% target band.

UA&P said government infrastructure spending may also regain momentum in the third quarter. This was after state spending slumped due to the 45-day election ban on public works spending from March 28 to May 12.

UA&P said residential construction will remain subdued due to elevated policy and interest rates.

The Bangko Sentral ng Pilipinas (BSP) has so far lowered borrowing costs by a total of 125 basis points (bps) since it began its easing cycle in August last year.  The policy rate now stands at 5.25%.

UA&P said the US dollar rate will “move either way” depending on rate cuts by the BSP and the US Federal Reserve.

“The peso-dollar rate has a fundamental depreciation bias although it will depend much on extent and timing of policy rate cuts by BSP and the Fed,” it said.

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 will be able to grow stronger in the 3rd quarter even though the 19% Trump tariffs are already in effect? Do you see any signs of Philippine exports to America slowing down already?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

Philippines Seeking US Tariff Exemptions For Agricultural Commodities, Electronics and More

Philippines Seeking US Tariff Exemptions For Agricultural Commodities, Electronics and More

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Remember the big meeting between United States President Donald Trump and Philippine President Ferdinand “Bongbong” Marcos, Jr., over a month ago? A 19% tariff by America on Philippine goods was set and now the government of the Philippines is seeking exemptions specifically for exports of agricultural commodities, electronics, vehicle tires, bags and aircraft parts, according to a BusinessWorld news report.

To put things in perspective, posted below is an excerpt from the news report of BusinessWorld. Some parts in boldface…

THE PHILIPPINES is asking the US to exempt exports of agricultural products and other goods from the 19% tariff imposed by US President Donald J. Trump, a Trade official said on Thursday.

Trade Undersecretary Allan B. Gepty said the government is seeking US tariff exemptions for exports of agricultural commodities, electronics, vehicle tires, bags and aircraft parts.

“We submitted a list of products we asked the US to exempt from the imposed tariff rates, because these are key and complementary items. And some of them, in fact, are not even produced or manufactured there (in the US),” he told senators at a Senate briefing on the tariff set by Washington on Philippine exports.

“The immediate need right now is we want to negotiate for an exemption, because we want to protect our industries whose main export market is the US,” he added.

The US began imposing a 19% tariff on Philippine goods starting Aug. 7.

“We already submitted to the US the products that should be exempted from the reciprocal tariffs,” he said.

Mr. Gepty said about 23% of the country’s total exports to the US are exempted from the 19% tariff.

In June, the United States was the top destination for Philippine-made goods amounting to $1.22 billion, 35.2% higher from the same month a year ago. Around 53% of the Philippines’ total exports to the US were semiconductors and electronics, Mr. Gepty said.

The US has yet to set new global tariffs for semiconductors and pharmaceuticals. Mr. Trump had earlier said he plans to announce higher tariffs on imports of semiconductors, but companies that plan to build manufacturing facilities in the US would be exempted.

“Ninety-nine percent of our semiconductors as of now are still exempted, there’s still no problem” he said. “If the 100% continues, that’s a big problem,” he added.

Mr. Gepty said most of the semiconductors are made by US companies in the Philippines and exported to the US. He noted the higher tariffs would pose problems for the US supply chain, particularly for its defense industry.

Meanwhile, the Philippines has not formally granted zero tariffs on US products, as negotiations over a reciprocal trade agreement remain ongoing, he said.

Let me end this post by asking you readers: What is your reaction to the recent developments? Do you think the Philippines will succeed in getting an exemption from the Trump tariff on key exports?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

Philippines Business Process Outsourcing (BPO) Sector and Government React To Keep Call Centers in America Act of 2025

Philippines Business Process Outsourcing (BPO) Sector and Government React To Keep Call Centers in America Act of 2025

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It is not surprising that both the Business Process Outsourcing (BPO) sector of the Philippines and the Department of Trade & Industry (DTI) reacted to the filing of the Keep Call Centers in America Act of 2025 which was filed in the United States Senate, as reported separately by BusinessWorld, BusinessMirror and the Philippine News Agency (PNA).

For the newcomers reading this, the Philippines BPO sector (sometimes referred to simply as the call center industry even though many local firms have gone beyond taking calls) is now a major part of the national economy with more than 1.7 million Filipinos employed, $35 billion in annual export revenues and the United States of America (USA) alone is the single largest market with 2024 export revenues reported at $25 billion (reported by BusinessMirror).

In the Filipino perspective, call centers are very important because they offer a lot of high-paying jobs for Filipinos who badly need employment. The so-called call center effect on local society and economics includes new stores and food vendors opening up nearby, the opening of new convenience stores operating 24/7, the established restaurants nearby serving customers around-the-clock, and the opening of new branches of banks. Of course, the income Filipinos earned from their BPO jobs enabled them to acquire new things, pay their bills, subscribed to digital services, and move into better residences while helping their families make ends meet.

Having been a call center agent myself a very long time ago, I have witnessed such socio-economic developments happen whenever a call center is present and I was in Cebu province.

To put things in perspective, posted below is an excerpt from the news article of the PNA highlighting the reaction of the DTI. Some parts in boldface…

Diversification will help cushion the possible impact of the proposed “Keep Call Centers in America Act,” aimed to protect local jobs by removing federal grants to companies that have call centers outside the United States.

The business process outsourcing (BPO) industry contributes a big part to the Philippine economy, with employment of around 1.4 million in 2024 and revenues of about USD38 billion. Around 70 percent of clients are based in the US.

Department of Trade and Industry (DTI) Secretary Cristina Roque said there are no discussions yet with officials of the Information Technology and Business Process Association of the Philippines (IBPAP) but expressed openness to talk about possible measures to help the sector.

“But for us, (the) DTI, of course, we’ll continue to help the IT-BPO (and) IBPAP businesses in whatever they need from us. Of course, we’ll assist the same way we’ve assisted in the past,” she said.

“We can’t just look at the US as the only market. The world is the market. If you look at their population as compared to the world, it will show you that we should really find other avenues to explore.”

Next, the Information Technology and Business Process Association of the Philippines (IBPAP) confirmed it is still evaluating the potential impact of the Keep Call Centers in America Act of 2025. For insight, posted below is an excerpt from the BusinessWorld report. Some parts in boldface…

THE IT & Business Process Association of the Philippines (IBPAP) said it is still evaluating the potential impact of the proposed Keep Call Centers in America act.

“It talks about US call centers so I really do not know who that will affect with the way that it is worded,” IBPAP President and Chief Executive Officer Jonathan R. Madrid said on the sidelines of an ECCP AI Forum.

“We need to understand it a little bit more. I think I know what their intention is. But I don’t know the likelihood of this passing. Obviously it is something we are monitoring, and with the way that it is worded, we need to study it more,” he added.

Introduced in the US Senate last month, the bill aims to impose restrictions on US firms outsourcing their call center operations.

In particular, the bill, if signed into law, will render employers outsource call center work overseas ineligible for new federal grants or guaranteed loans.

“I am speaking to the American Chamber of Commerce; we are discussing it and we will see. But we are all aligned on how we will manage this,” he said.

“While the bill is still in the early stages of the legislative process, we remain committed to keeping our stakeholders informed, providing timely guidance, and ensuring that the Philippine IT-BPM industry is well-positioned to adapt and thrive in a changing regulatory environment,” he said.

Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said that the proposed bill poses a “clear risk to the Philippine IT-BPM industry, especially in the call center segment.”

“By restricting access to US federal grants, contracts, and loans for companies that offshore customer service jobs or do not properly disclose them, the bill raises the regulatory and reputational costs for offshore operations,” he said via Viber .

He said the Philippine industry has been evolving beyond voice-based call centers, which are less exposed to call center-specific legislation.

“We now see strong growth in high-value services such as finance, healthcare information management, legal process outsourcing, software development, and data analytics,” he said.

With the US Senate’s proposal to bring back call centers to the US, he said that the Philippines must continue to move up the value chain to reduce exposure to such policies.

“While the bill underscores vulnerabilities in our call center export model, it also reinforces the importance of accelerating investment in high-value, tech-enabled services where the Philippines can maintain global competitiveness,” he added.

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said the bill could be “a potential drag on future growth of the industry.”

For this year, the IT-BPM industry is expected to generate $40 billion in export revenue and increase its workforce to 1.9 million.

To examine the details of the Keep Call Centers in America Act of 2025, click here and here.

Let me end this post by asking you readers: What is your reaction to the recent developments? Do you think the IT-BPM sector of the Philippines has what it takes to protect itself from whatever effects the Keep Call Centers in America Act of 2025 could create if ever it gets signed into law? Do you personally know anyone who is working in a BPO firm or a call center here in the Philippines? What kind of assistance do you think the national government will offer to the IT-BPM sector? Do you think the existing call centers should search for English-speaking clients in England, Ireland, Scotland, Israel and the like?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

Keep Call Centers in America Act of 2025 Causes Disturbance on Philippines Information Technology and Business Process Sector

Keep Call Centers in America Act of 2025 Causes Disturbance on Philippines Information Technology and Business Process Sector

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More than twenty years ago, I had a job at an American call center in Mandaue City, Cebu Province here in the Philippines. Back then, the call center industry of the nation was very young and yet quickly growing in terms of revenues, new foreign investments and new jobs. Today, the Philippines has a large information technology and business process management (IT-BPM) sector.

That being said, America today is quickly reforming under the leadership of President Donald Trump and already business ties and trade relationships have quickly been changing. In the United States Senate (US Senate), a bipartisan bill was formally filed – the Keep Call Centers in America Act of 2025.

Already, the proposal is already disturbing the information technology and business process management sector of the Philippines as revealed by the Manila Bulletin in its business news report.

To make things clear, I am not taking sides here. I am a citizen of the Philippines who worked for a few months in an American call center a very long time ago and at my age, I have no intention to return to call center work. I am already engaging in a new business that has nothing to do with call centers and business process management. As for how America’s leaders deal with call centers and business processing centers located in different parts of the world, that is their decision to make. It would be interesting, perhaps intriguing, to see how the Philippines IT-BPM sector will adjust if ever the Keep Call Centers in America Act of 2025 becomes a law someday.

To put things in perspective, posted below is an excerpt from the news report of the Manila Bulletin. Some parts in boldface…

The Philippine information technology and business process management (IT-BPM) sector is bracing for the potential impact of a bill in the United States (US) Senate that seeks to end the practice of offshoring among American call centers.

The IT and Business Process Association of the Philippines (IBPAP), the country’s leading IT-BPM group, said the industry is currently monitoring the progress of this proposed legislation.

“At this stage, we are continuing to track developments,” IBPAP told Manila Bulletin.

The proposed Keep Call Centers in America Act of 2025, filed as a bipartisan bill in the US Senate, is aiming to curb offshoring or relocation of business operations from one country to another as it pertains to call center jobs.

In a statement by Arizona Senator Ruben Gallego, a Democrat, he said the bill looks to reverse the continued decline of call center operations in America, driven by the emergence of artificial intelligence (AI) offshoring.

Citing data from the US Bureau of Labor Statistics (BLS), Gallego noted that the American call center industry will lose approximately 150,000 workers by 2033 if such practices persist.

“The Keep Call Centers in America Act would work to reverse this trend by limiting federal benefits to companies that ship call center jobs overseas,” said Gallego, who filed the bill with West Virginia Senator Jim Justice, a Republican.

Under the proposed bill, companies are required to notify the US Department of Labor (DOL) at least 120 days before relocating operations overseas or contracting out call center work to another entity that relocates abroad.

The DOL, meanwhile, will be mandated to maintain a public list of employers that have relocated operations. Companies will remain on the list for five years “unless they return an equal or greater number of call center jobs in the US.”

Call center firms on this list will be ineligible for new federal grants and guaranteed loans and will not be given preference when awarding contracts.

In a CBS News report, Gallego said that aside from supporting the return of domestic jobs, the bill will likewise address consumer concerns when it comes to “security around their private information.”

The bill, if enacted, will cover businesses with either 50 or more full-time employees, or 50 or more employees whose combined work hours total at least 1,500 per week. As such, the measure will impact large-scale call center operations such as those that are currently operating in the Philippines.

Based on a 2023 report by the Ateneo Policy Center, more than 200 US-based firms have invested approximately $7.8 billion to set up operations in the Philippines since 2003.

The proposed Keep Call Centers in America Act could not have come at a worse time, given that the Philippines’ services exports are slowing down.

In a report, Bank of the Philippine Islands (BPI) lead economist Emilio Neri Jr. noted that services exports shrank by 4.2 percent year-on-year in the second quarter of 2025, citing data from the Philippine Statistics Authority (PSA).  This followed a 6.3-percent growth rate in the first quarter, which decelerated from a 13.2-percent expansion in the fourth quarter of 2024.

Neri said the services export sector is weighed down by a sharp drop in travel and signs of weakness in the IT-BPM sector.

To examine the details of the Keep Call Centers in America Act of 2025, click here and here.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you know a lot of people here in the Philippines who work in American call centers? Do you seriously believe that if ever the Keep Call Centers in America Act of 2025 becomes a law, it will someday compel American companies to close down its call centers here in the Philippines and create a wave of new job losses? Without American companies and clients, do you think the Philippines IT-BPM sector will shrink dramatically? Do you think the Keep Call Centers in America Act of 2025 will be passed by US Congress and get signed into law by US President Trump?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

P7-billion redevelopment and expansion of SM Megamall pushing through

P7-billion redevelopment and expansion of SM Megamall pushing through

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When was the last time you visited SM Megamall here in the Philippines? I was there a few months ago and it still has that same long rectangular structure with lots of stores, restaurants and service providers occupying spaces. It has been 33 years since my first-ever visit at SM Megamall. That being said, SM Megamall is up for major changes as a P7-billion redevelopment and expansion plan for it has been approved with a competition target between 2027 and 2029, according to a Manila Bulletin business news report.

To put things in perspective, posted below is an excerpt from the news report of the Manila Bulletin. Some parts in boldface…

SM Prime Holdings Inc. (SM Prime), the Sy family’s property development company, is investing ₱7 billion to redevelop and further expand SM Megamall, one of the Philippines’ most iconic malls, with phased completion targeted between 2027 and 2029.

In a disclosure to the Philippine Stock Exchange (PSE), the firm said the project is designed to elevate the customer experience while embedding long-term sustainability measures across the property.

Designed by United Kingdom (UK)-based architectural firm Benoy—known for developments like Jewel Changi in Singapore and Icon Siam in Thailand—the new SM Megamall will adopt a “Crystal Islands” concept, emphasizing natural light, open flow, and organic forms.

The redevelopment will add 20,000 square meters (sqm) of gross leasable area (GLA) and introduce nature-inspired architecture, improved mobility features, and energy-efficient systems. The addition of themed retail zones and intuitive wayfinding is designed to make the mall more accessible, while encouraging visitors to explore and discover new experiences throughout the expansive complex.

Operational upgrades include a new four-level basement parking facility with over 1,600 slots, expanded walkways and ceilings, and improved circulation through wider corridors and modernized vertical transport.

The redevelopment also includes relocated state-of-the-art cinemas, a new Megatrade Hall, a redesigned food court, and upgraded common areas and restrooms.

Sustainability features are integral to the redevelopment blueprint. A rainwater harvesting system with a 500-cubic-meter capacity will support water conservation, while upgrades to the mall’s mechanical systems are expected to reduce overall energy consumption.

ETFE roofing will be used to let in natural light and reduce cooling costs, while skylights and clerestory windows will minimize artificial lighting.

Let me end this post by asking you readers: What is your reaction to this recent development? When was the last time you spent at least half a day at SM Megamall doing shopping and leisurely activities? Are your favorite restaurants located inside SM Megamall?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

Michelin opens new office in Alabang

Michelin opens new office in Alabang

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The French multinational tire manufacturing company Michelin very recently opened a new office in Filinvest City in Alabang to provide service and support to its customers, according to a GMA Network news report. This development added business credibility to the corporate city of Filinvest and Muntinlupa City in general. The Michelin Alabang office is in the Polaris Building.

To put things in perspective, posted below is the excerpt from the news report of GMA Network. Some parts in boldface…

Michelin on Thursday announced the opening of its new official office in the Philippines, which will focus on strengthening the brand in the Philippines, and invest in local talents moving forward.

The new office — located in the Polaris Building, Filinvest Corporate City, Alabang in Muntinlupa City — will serve as a hub for enhanced customer engagement and support, to reflect its “dedication to the growing Filipino market.”

“We are excited to open our new office in the Philippines. We recognize the country’s strong market potential, and this move enables us to reinforce our partnerships, enhance customer support, and further establish Michelin as the preferred choice for mobility solutions in the region,” Michelin Asia Pacific (Singapore) Philippines Branch Office managing director Jonathan Khong said.

According to Michelin, the new office will strengthen collaboration with local partners, provide them with better resources, tools, and expertise to enhance their business operations, and boost the Michelin brand in the country.

The opening of the new office also “reflects Michelin’s continued dedication” to the Philippines, and will strengthen sales and after-sales services through support to partners, and investment in developing local talents.

Let me end this post by asking you readers: What is your reaction to this recent development? If you are a resident of Muntinlupa, do you feel confident that the presence of Michelin in Alabang will add a lot to the economic dynamism of the city? Do you know a lot of Michelin customers living in Muntinlupa and in nearby cities? Do you think Michelin’s presence in the city will convince other international businesses to set up new offices or service centers in Filinvest City in the near future?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram at https://www.instagram.com/authorcarlocarrasco

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 engagements, commerce and other relevant updates, join the growing South Metro Manila Facebook group at https://www.facebook.com/groups/342183059992673

San Miguel Corporation’s “Better Rivers PH” initiative removes 93,000 tons of silt and waste from Parañaque rivers

San Miguel Corporation’s “Better Rivers PH” initiative removes 93,000 tons of silt and waste from Parañaque rivers

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Parañaque City benefited from the “Better Rivers PH” initiative of San Miguel Corporation (SMC) as ninety-three thousand tons of silt and waste was removed from the rivers of the city and other improvements were also done, according to a Business Mirror news report.  

To put things in perspective, posted below is an excerpt from the Business Mirror news report. Some parts in boldface…

San Miguel Corp.’s (SMC) “Better Rivers PH” initiative has removed 93,000 tons of silt and waste from Parañaque rivers as of January 23.

The company said this effort aims to improve water flow and address perennial flooding at Ninoy Aquino International Airport (Naia) and surrounding areas.

The cleanup covers 1.9 kilometers of river channels, including the Parañaque River, Don Galo River, and their junctions with the San Dionisio and Villanueva creeks.

In addition to river cleanups, SMC has also de-clogged storm drain lines along Domestic Road and NAIA Terminal 4. This included reopening 54 manholes and constructing 10 new ones for better access and maintenance. These upgrades are seen to sustain flood prevention efforts around the airport complex.

SMC’s efforts, carried out at no cost to the government or taxpayers, are part of a broader mission to restore waterways and reduce flooding in urban areas.

Bathymetric surveys in Parañaque identified bottlenecks in river systems that restricted water flow to Manila Bay, prompting targeted cleanup and desilting operations in critical areas. The project benefits from the active involvement of key government agencies such as the Department of Transportation (DOTr), Department of Public Works and Highways (DPWH), Department of Environment and Natural Resources (DENR), and the local government of Parañaque.

“Flooding has been a long-standing issue for Parañaque and NAIA, particularly during typhoon season,” said SMC Chairman and CEO Ramon S. Ang. “Through Better Rivers PH and with support from government agencies, we were able to implement sustainable solutions that we hope will deliver lasting benefits to residents, businesses, and travelers.”

Let me end this post by asking you readers: What do you think about this recent development? If you are a resident of Parañaque, are you delighted over SMC’s special assistance that cost you nothing? Do you want to see SMC’s initiative to last long to make Parañaque cleaner, better and safer as a city?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram at https://www.instagram.com/authorcarlocarrasco

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

DTI lauds signing of Tatak Pinoy law (Republic Act Number 11982)

DTI lauds signing of Tatak Pinoy law (Republic Act Number 11982)

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In relation to the recent signing of Republic Act Number 11982 (RA11982 or Tatak Pinoy law) into law by Philippine President Ferdinand “Bongbong” Marcos, Jr., the Department of Trade and Industry (DTI) lauded the signing stressing that it will empower the nation’s industrialization, according to a Philippine News Agency (PNA) news article.

To put things in perspective, posted below is an excerpt from the PNA article. Some parts in boldface…

Department of Trade and Industry (DTI) Secretary Alfredo Pascual reaffirmed the department’s commitment to boost its science, technology and innovation-driven industrialization agenda with the enactment of Republic Act (RA) 11982 or the Tatak Pinoy Act on Monday.

In line with President Ferdinand R. Marcos Jr.’s priorities in the Philippine Development Plan (PDP) 2023-2028, the newly passed legislation will empower Philippine industries to manufacture a broader range of higher quality and sophisticated products, elevate the country’s position in the global value chain, and enhance productivity and competitiveness in the global market.

The Tatak Pinoy Law lies at the core of the nation’s industrialization strategy, revitalizing and driving the economic agenda with precision. With its focus on promoting industrial excellence, embracing innovation and navigating contemporary challenges, Tatak Pinoy is a transformative legislation that empowers Philippine industries to thrive in an intensely competitive global landscape.

Under the law, a Tatak Pinoy Council will spearhead the development and implementation of a multi-year strategy focusing on five key pillars: human resources, infrastructure, technology and innovation, investments, and sound financial management.

“We are confident that this legislation will bolster our ongoing programs, propelling industries towards greater global recognition and success. It underscores our commitment to implement measures that enhance the competitiveness of our local industries, ensuring that the world gets to experience what the Philippines has to offer,” Pascual said in a news release.

The Atlas of Economic Complexity, which measures the level of sophistication of export products being produced by countries globally, ranks the Philippines as 33rd among 133 countries, with an overall economic complexity index of 0.76.

This is driven by the country’s exports of high to moderate complex products such as electronics and integrated circuits, electrical machinery and equipment, as well as information and communications technology (ICT) services.

The country ranks 4th in Southeast Asia, trailing behind Singapore (5th), Thailand (23rd), and Malaysia (28th), and above Vietnam (61st) and Indonesia (64th).

“The Tatak Pinoy Law is a significant milestone that will enable our industries to climb up the economic complexity ladder, making the Philippines a more formidable player in the global market. Tatak Pinoy will enable our industries to embrace new technologies and effectively overcome the challenges of the modern world,” DTI Undersecretary Rafaelita Aldaba said.

With the implementation of the Tatak Pinoy Law, the DTI aims to elevate the country’s ranking by supporting and promoting the production of more sophisticated and high-quality products.

Tatak Pinoy will build on the existing flagship initiatives of the DTI, such as the One Town, One Product (OTOP) and Malikhaing Pinoy Program, which cultivate and promote unique products and empower local entrepreneurs and innovators to elevate the quality and marketability of locally made products.

Tatak Pinoy is poised to revolutionize industries, particularly Philippine manufacturing, amidst the entry of Fourth Industrial Revolution technologies. It will amplify DTI’s efforts in building an Industry 4.0 Pilot Factory, establishing a Center for Artificial Intelligence Research (CAIR), and supporting the country’s Regional Inclusive Innovation Centers (RIICs).

The new law will also drive innovation and facilitate Industry 4.0 adoption, especially among micro, small and medium-sized enterprises (MSMEs).

Pascual said a critical provision of the law is the mandate for the Philippine government to prioritize Filipino products and services in government procurement, strengthening collaboration between the public and private sectors.

“This initiative serves as a catalyst for creating a robust market environment, particularly beneficial for SMEs and startups,” he said.

Let me end this piece by asking you readers: What is your reaction about this recent development? Do you think the new Tatak Pinoy law will improve the nation’s industrialization in the years ahead? Do you think it will lead to even more new jobs in the future?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

World Bank sees Philippine economy growing at 5.8% this year

World Bank sees Philippine economy growing at 5.8% this year

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While local economic managers predict the Philippine economy growing between 6.5% to 7.5% this year, the World Bank (WB) itself forecasts a 5.8% growth for 2024, 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 WORLD BANK (WB) expects the Philippines to be among the fastest-growing economies in Southeast Asia this year.

In its latest Global Economic Prospects, the multilateral lender projected Philippine gross domestic product (GDP) to expand by 5.8% in 2024, same as its forecast in December.

The Philippine growth projection is the fastest among Southeast Asian economies, tied with Cambodia (5.8%), and ahead of Vietnam (5.5%), Indonesia (4.9%), Malaysia (4.3%), Lao People’s Democratic Republic (4.1%), Timor-Leste (3.5%), Thailand (3.2%) and Myanmar (2%).

However, this is below the Development Budget Coordination Committee’s (DBCC) 6.5-7.5% growth target for 2024.

The World Bank’s growth forecast for the Philippines is also higher than its 4.5% projection for East Asia and the Pacific.

The multilateral lender sees slower growth in the region due to the “anticipated deceleration in economic activity in China.”

Other risks to the growth outlook include geopolitical tensions in the Middle East that could lead to higher oil prices, dampened global trade, tightening financial conditions and climate-related disasters, it said.

“Extreme weather events, the frequency of which has increased in recent decades as a result of climate change, also pose a downside risk to the regional outlook,” it added.

In the Philippines, the government is preparing for the potential impact of the El Niño weather event this year.

The latest bulletin from the state weather bureau showed that El Niño will likely persist from March to May, when dry season crops are often harvested.

National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan earlier said El Niño would likely affect the agriculture sector and drive food prices higher, which could threaten the inflation downtrend.

On the other hand, the multilateral lender said resilient domestic demand could spur growth drivers in the East Asia and Pacific region.

“Modest inflation, and in many cases robust labor markets supported by buoyant service activity, are anticipated to sustain household spending,” it said.

Let me end this piece by asking you readers: What is your reaction to this recent development? Do you think the economy of the Philippines will grow better this year than the WB’s prediction of 5.8%?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

Withholding tax on online sellers could address revenue leakages

Withholding tax on online sellers could address revenue leakages

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With the 1% withholding tax on online sellers already in effect, there is potential that the said tax could address revenue leakages, according to a BusinessWorld news article.

To put things in perspective, posted below is an excerpt from the BusinessWorld news article. Some parts in boldface…

THE GOVERNMENT should ensure that it will be able to properly implement and monitor the collection of withholding tax on online sellers.

The Bureau of Internal Revenue (BIR) recently issued Revenue Regulations (RR) No. 16, which imposes a withholding tax on the gross remittances made by electronic marketplace operators and digital financial service providers to merchants.

Analysts said that the implementation of the withholding tax on online sellers will allow the BIR to better track transactions in the digital economy.

“The implementation of a 1% withholding tax on online sellers is intended to expand the tax base by addressing potential revenue leakages in the growing online retail industry,” China Banking Corp. Chief Economist Domini S. Velasquez said in a Viber message.

“Ideally, the withholding tax system should streamline the tax payment process for online sellers and should have no substantial impact on prices under the assumption that retailers are paying correct taxes,” she added.

Eleanor L. Roque, tax principal of P&A Grant Thornton, said that the measure provides the BIR an additional mechanism to “ensure that taxes are paid by the business owners since their income will also be reported by their withholding agents.”

Ms. Velasquez noted that the imposition of the withholding tax may also mitigate some instances of noncompliance by online sellers.

“This measure is expected to increase government revenues and promote transparency among companies engaged in online retail trade,” she added.

Ms. Roque said that the tax will be an “additional administrative burden” on electronic marketplaces.

“These entities will have to put controls in place to identify remittances to online sellers that are subject to withholding taxes,” she said in a Viber message.

Under BIR regulation, a withholding tax of 1% will be imposed on one-half of the gross remittances by e-marketplace operators and digital financial service providers to the sellers or merchants for the goods and services paid or sold through their platforms or facilities.

However, the tax is not imposed if the annual total gross remittances to an online seller for the past taxable year has not exceeded P500,000; if the cumulative gross remittances to an online seller in a taxable year has not yet exceeded P500,000 or if the seller is duly exempt from or subject to a lower income tax rate pursuant to any existing law or treaty.

The regulation covers marketplaces for online shopping, food delivery platforms, platforms to book lodging accommodations, and other similar online service or product marketplaces.

Let me end this piece by asking you readers: What is your reaction to this recent development? Do you think the withholding tax on online sellers will solve government revenue leakages?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco