News
BusinessMirror
A2 Monday, April 29, 2019
MinDA chief: Cultural, not consular, office in Sabah By Manuel T. Cayon
D
@awimailbox Mindanao Bureau Chief
AVAO CITY—The signing minister for the Philippines in the East Asean Growth Area grouping clarified as erroneous a Malaysian news report quoting him as saying that the Philippines would drop its territorial claim to Sabah.
Datu Abul Khayr D. Alonto, chief of the Mindanao Development Authority (MinDA), denied making any statement that the Philippines will establish a consular office in Kota Kinabalu in Sabah. “It is totally inaccurate and I categorically deny making such statement,” Alonto said in a statement on Sunday, to clarify his supposed statements while visiting Kota Kinabalu last year. He said a Manila-based newspaper (not the BusinessMirror) had quoted a “supposed Borneo Post report quoting that I would leave it to the Malaysian Foreign Ministry to convey the message that Sabah was an independent entity within Malaysia and that the Philippines
should drop its claim on Sabah.” This story printed by the Manila newspaper elicited a reaction from Foreign Affairs Secretary Teodoro L. Locsin Jr., who said that the statement on a Sabah consulate proposal was “treason.” “The good DFA Secretary was reacting to a news article in the Borneo Post which quoted Sabah Deputy Home Minister Datuk Mohd Azis Jamman as saying that a senior official of the Duterte administration had proposed setting up a Philippine consular office in Kota Kinabalu to assist the undocumented Filipinos, including the issue of stateless children,” Alonto said. “To set this matter in right con-
text, I did have the opportunity to meet the Right Honorable Sabah Chief Minister Datuk Seri Mohd Shafie Apdal in September 2018 in Kota Kinabalu. I have never met with Deputy Home Minister Datuk Mohd Azis Jamman,” he added. He said his meeting with the Sabah chief minister last year was to push President Duterte’s initiative of reviving the barter trade system in Mindanao, “as well as to sustain transport connectivity between Sabah and Mindanao all in the context of our BIMP-Eaga initiative.” “I was there representing the Philippines as the country’s Philippine Signing Minister for BIMPEaga,” he added. “Rather than a Consular Office, I proposed a Cultural Office in Kota Kinabalu which will be primarily tasked to carry out various initiatives and programs that will strengthen the cultural ties between Filipinos and Malaysians who share the same historical origins and cultural affinity. A Cultural Office could also serve as a mechanism to assist Filipinos working and living in North Borneo, particularly providing them with social services that they currently do not have due to the standing claim of the Philippines
Malampaya tax row resolution seen to spur new investments in oil, gas
T
HE chairman of the Senate’s Senate Committee on Energy said at the weekend there is no longer any “legal impediment” to explore oil and gas deposits following the recent resolution of the $1.1-B Malampaya Tax Arbitration Case in Singapore. “There is no longer a legal impediment for investors to undertake oil and natural gas explorations now that the arbitration court in Singapore has finally resolved the $1.1 billion tax case between Shell Philippines Explo-
Software. . . Continued from A1
The USTR in the report argued it is important that governments legitimize their own activities in order to set an example of respecting IP for private enterprises. “Additionally, unlicensed software exposes governments and enterprises to higher risks of security vulnerabilities. Further work on this issue remains with certain trading partners, including Argentina, Brazil, Chile, China, Costa Rica, Egypt, Greece, Indonesia, Kenya, Mexico, Nigeria, the Philippines, Romania, Russia, Thailand, Ukraine and Vietnam,” the report read. The US urged trading partners to adopt and implement effective and transparent procedures that will ensure the legitimate use of software in governments. The report, citing a study from The Software Alliance, claimed the global value of unlicensed software was at least $46 billion last year. The US is working with other governments to address the use of unlicensed software, particularly in countries that are modernizing their systems or
Inflation. . . Continued from A1
Actual inflation in the first three months of the year hit an average of 3.8 percent, with the latest print reaching 3.3 percent. This is a reversal of the previous quarter’s inflation path, where the average rate of the October to December 2018 inflation hit 5.9 percent. Further, the 26 economists surveyed by the BSP showed that inflation could fall back to the 2-percent territory this year. Respondents forecast a 2.8 percent average inflation rate for the third quarter of 2019. The last time that inflation hit the 2-percent territory was in December 2017 at 2.9 percent. For 2020, the economists’ average forecast was also lower at 3.4 percent from the 3.8
ration BV (SPEx) and the government,” Sen. Sherwin Gatchalian said on Sunday. The P53-billion tax case arose from a Commission on Audit (COA) ruling that the income taxes of the Shell-led consortium operating the Malampaya gas facility cannot be deemed included in the Philippine government share in the revenues from Malampaya. Such dispute, while it festered, was, according to Gatchalian, “a big specter that discouraged foreign players from conducting petroleum
explorations in the Philippines over the past several years and drove away investments in high risk, capital-intensive and technologyintensive sectors.” He added: “With the case now behind us, it is high time for the government to aggressively pursue a ‘Drill, Drill, Drill’ program, so that we can tap these oil and gas resources and use them to achieve Philippine energy independence and pave the way for the country to become an energy exporting powerhouse.” Butch Fernandez
where there are infringement concerns. Further, the USTR scored the Philippines for its slow opposition proceedings, or the administrative procedure wherein one party tries to prevent another from registering a trademark.
agency will complete the needed work to address the issues raised by the USTR. “While this [the Philippines staying out of the USTR watch list] is very welcome news, much work still needs to be done on strengthening the IP system as a whole, not just in enforcement. We won’t be resting on our laurels, [as] it is a continuing challenge to develop a culture of respect for intellectual property,” Santiago said. The IPOPHL submitted its report to the USTR in February, accounting initiatives on IP protection, promotion and enforcement, as well as the general state of the country’s IP environment. According to the IPOPHL, it included in the report the renewed memorandum of understanding on strengthening IP enforcement with its United Kingdom counterpar t; collaborations on IP enforcement capacity building with the European IP Office; and enforcement related legislative amendments to the IP Code, including increasing of penalties and imprisonment period for IP infringement. The Philippines first landed on the USTR watch list in 1994. It gradually eased from priority watch list to regular watch list over the next two decades, and was finally removed in 2014.
Out of watch list
IN spite of issues on IP rights protection, the Philippines managed to stay out of the USTR watch list for the sixth consecutive year. The watch list is comprised of countries with weak enforcement and protection of IP owned by American entities and firms. Along with Ottawa and Tokyo, Manila was recognized by Washington for its laws and enforcement practices against unauthorized camcording, telling countries to adopt a similar design. The USTR report also lauded the Philippines for the creation of the IP Academy. The IP Academy, a brainchild of the Intellectual Property of the Philippines (IPOPHL), is intended to develop IP education programs that incorporate international aspects and adopt a multidisciplinary approach to addressing IP issues. In a statement over the weekend, IPOPHL Director General Josephine R. Santiago said her
percent in the December 2018 survey. Their projection for the 2021 inflation, meanwhile, remained at 3.4 percent.
Current rate ‘appropriate’
IN his opening remarks at the first quarter 2019 Inflation Report last week, BSP Governor Benjamin Diokno said their assessment remains that the current monetary policy rate is still appropriate to given economic conditions. “On balance, therefore, our prevailing monetary policy stance remains appropriate, given the confluence of easing inflation and firm growth dynamics. The BSP continues to gauge the impact of its monetary policy responses on domestic economic conditions to ensure that inflation remains on track toward the government’s target of 2 to 4 percent and that inflation expectations remain anchored,” Diokno said.
“...the BSP will remain data-driven at all times in our policy decision-making and our actions will be determined by our inflation outlook. The BSP remains focused on safeguarding and promoting price stability conducive to a balanced and sustainable economic growth,” he added. Last year, the Monetary Board moved the country’s monetary policy rate 175 basis points upward to respond to the rising inflation during that time. As inflation continues to lose steam, some economists are calling for a cut in the monetary policy rate to spur the country’s economic growth especially now that it is expected to take a hit from the delays in the budget implementation in the country. The Monetary Board will have its next meeting on May 9.
“Rather than a Consular Office, I proposed a Cultural Office in Kota Kinabalu which will be primarily tasked to carry out various initiatives and programs that will strengthen the cultural ties between Filipinos and Malaysians who share the same historical origins and cultural affinity.”— Alonto
on Sabah,” he said. He said the meeting was “closeddoor and a private one.” “Our discussion focused on mechanisms that could sustain the sea and air transport linkages between Sabah and Mindanao, including Palawan, as well as reviving the centuries-old barter trade system in our border areas,” he added. He said he also brought up the plight of undocumented Filipinos living in Sabah and told the Sabah chief minister that assisting the large number of Filipinos “had not been easy through the years considering the political implication of such action to our national policy.” “I merely stated that I will work this out with our Foreign Affairs Ministry,” he added.
ADB. . .
Continued from A1
Nakao added that discussions on the Fourth Industrial Revolution will also include robotics, already a major industry in Japan. Discussions at the annual meeting in Fiji will include the soft side of the economy, particularly tourism, where people are needed to provide a “human touch” in various tourist destinations. Nakao said the Philippines can become a major tourist destination if tourists feel safe and secure during their visit. Data showed the Philippines’s tourism receipts accounted for 2.6 percent of GDP in 2017, which is not far from the 2.8 percent of GDP posted in 2005. In terms of tourist arrivals, there were only 6.6 million tourists who visited the country, not even 10 percent of the Philippine population of 104.9 million. “I think the Philippines has a great chance to further develop [its tourism sector] if people feel secure, safe when coming to the country. [There are a lot of] beautiful beaches and the government is paying attention to clean water like in the case of Boracay, and they are now doing the work in Manila Bay,”Nakao said. “Much has to be done [to increase the number of tourists].” Efforts to boost the tourism potential of the Philippines and other countries in the Association of Southeast Asian Nations include adopting and implementing the Asean tourism guidelines and standards; investing in infrastructure to connect tourism corridors; and supporting the Asean Single Aviation Market. The list of measures also include improving travel facilitation such as visa-free entry for tourists; building knowledge and skills of Asean tourism professionals; and ensuring guidelines and regulations to protect environment and local communities. Nakao said this year’s meeting in Fiji will have around 2,000 delegates. While this is smaller than the 3,000 who attended the meeting in Manila in 2018, there are more officials gracing the event. “Fiji really wanted to have an annual meeting in Fiji because there is a growth in Fiji and they want to show the opportunities and challenges with Pacific Island countries. So we are expecting more than 2,000 participants in Fiji as compared to about 3,000 participants last year,” Nakao said. The Annual Meeting of the ADB Board of Governors is an opportunity to provide guidance on ADB administrative, financial and operational directions. The meetings provide opportunities for member-governments to interact with ADB staff, civil society organizations, media, and representatives of observer countries, international organizations, academe and the private sector. Participants include finance and economic planning ministers; senior government officials; representatives of the multilateral development bank community; investment bankers; representatives of nongovernment organizations; and members of the media.
www.businessmirror.com.ph
BIR extends deadline for registration of POS machines to May 31 By Rea Cu
@ReaCuBM
T
HE Bureau of Internal Revenue (BIR) has extended the deadline for the mandatory registration of point of sale (POS) machines and sales machines or software with permit to use (PTU) under the bureau’s Enhanced and Integrated Electronic Accreditation and Registration (eAccReg) and Electronic Sales Reporting (eSales) systems. The system is being used for the collation of sales reports from business owners. In Revenue Memorandum Circular (RMC) 48-2019 it issued on April 17, the BIR extended the deadline for the mandatory resubmission of registration for POS machines, cash register machines (CRM), special purpose machines (SPMs), as well as sales machines or software with a PTU of taxpayers to the bureau’s eAccReg. Sales machines that were issued in the month of January this year are those required to resubmit their respective applications through the eAccReg. The deadline was moved to May 31, 2019, instead of April 12, 2019, as mandated under RMC 42-2019 earlier issued by the BIR. “This Circular is hereby issued to amend the deadline for resubmission of applications via eAccReg system which will be on or before May 31, 2019,” stated BIR RMC 48-2019. An earlier issuance, RMC 42-2019, mandated the resubmission of applications for sales machines that were issued in January 2019, as the BIR encountered technical problems in the eAccReg system, affecting transactions and applications filed from January 3 to 31, 2019. “In line with this, concerned accredited suppliers, pseudo-suppliers and/ or taxpayer-users shall resubmit their
Chicken meat. . . The glut in broiler supply, which started as early as August last year, has pulled down farm-gate prices below profitable levels, with some small players losing money and reducing production volume. As of April 22, the average farm-gate price of regular-sized broiler is around P60.33 per kilogram, almost P15 lower than the lower-end of the P75 to P85 break-even level. The average farm-gate price of regular-sized boiler ending April 12 was pegged at P71 per kilogram. Agriculture Secretary Emmanuel F. Piñol recently issued Administrative Circular 03 which set the suggested retail price of broiler at P128 per kilogram to match the average farm-gate price of P78 per kilogram recorded in April 5 to April 12. Inciong pointed out that the 1.424 MMT total supply could be an “understated” volume as estimates of the DA-AMAS were quite conservative.
Ayala Land. . . Continued from A1
The Chinese enterprise is Guangdong’s largest tile company and will take up some 1.7 hectares of space for its production. “In the last two to three years, we’ve seen interest from some of their manufacturing companies to locate here in the Philippines, so we want to be able to provide the appropriate site for some of these companies to bring in their manufacturing operations here,” he said. The said industrial park will also be open to non-Chinese locators that are engaged in light manufacturing activities, he said.
Venture capital fund
AYALA Corp, meanwhile, is setting up a $150-million venture capital fund that will
Brownouts. . .
applications for registration of the CRMs, POS machines, SPMs, and other sales machines through the eAccReg system,” BIR RMC 42-2019 said. The BIR said then that failure to comply with the reapplication requirement will automatically tag the CRMs, POS machines, SPMs, and other sales machines concerned under the status of nonregistration, which will be subject to penalties. Once taxpayers have successfully registered, a reconfiguration on their machines shall be done to reflect the new PTU and machine identification number (MIN), including its validity date on the receipts and invoices. “The previously issued permit, whether manually or electronically, shall be surrendered within 15 days from receipt/ printing of the new PTU to the Revenue District Office (RDO) having jurisdiction over the taxpayer-user’s place of business,” the RMC added. The BIR requires businesses to submit their sales reports through the eSales system every eight or tenth of the month, to be complied with using the new MIN as provided on the new PTU generated. This is in line with the tax collection mandate of the bureau. “Otherwise, nonsubmission of the aforesaid sales report shall be subject to the existing penalty for this violation and will be a ground to be prioritized by the bureau for post-evaluation of CRMs, POS machines, SPMs, and other sales machines based on existing revenue issuances,” the RMC added. The eAccReg System is an enhanced electronic accreditation and registration system for business machines. The platform enables users to get their authority to print receipts online instead of going periodically to the BIR offices.
Continued from A1
“That’s why I am really worried about looking forward unless, of course, there’s a slowdown with the heat taking its toll,” he said. “Those who do not have the capital might [resort] to stopping back production.” Inciong explained that it is surprising that the higher temperature this year, brought about by the weak El Niño, has not slowed down broiler output. Historically, he added, broiler output is lower when the flock’s appetite declines due to heat. Asked what is the industry’s plan moving forward, Inciong said they are studying options to address the concerns at hand, particularly the disconnect between the farm-gate price and the retail prices of broiler. “What I am seeing now is that there are players who maybe—the best way to put it—will start to reduce their exposure to that value chain that ends up in the wet market as farm-gate prices are very volatile,” he added. come from all of its units. The said fund will invest globally in new technologies that can complement their business activities. “With this new fund, Ayala seeks to focus on start-ups in their early growth stage, and support tech innovations in data and analytics, machine learning, artificial intelligence, cloud computing, fintech, automation, real estate, retail, transport, energy, water, health and wellness, and food,” the company said. The fund will be managed by Kickstart Ventures Inc., the corporate venture capital subsidiary of Globe Telecom Inc. with investment decisions overseen by senior Ayala group executives. It has invested in 39 digital start-ups in seven different countries since 2012. This fund is the largest effort of its kind in the Philippines, and the first conglomerate-wide strategic venture capital fund in the country, the company said.
Continued from A12
“They should fix their plants,” he added. At the same time, Gatchalian indicated that he will conduct follow up hearings by the Senate Committee in the course of crafting remedial legislation to address energy issues. “We will look at possible collusion [by energy players],” he said, hinting this will likely lead to tighter
legislation against anti-competition practices. “We cannot let it pass; we will look into it.” Gatchalian signalled that “if the fact-finding shows it [supply shortage] was made up to jack up rates, their licenses should be revoked,” referring to power providers he did not identify. “This is why we need factfinding to verify their claims.”