REVISED CORPORATION CODE SIGNED By Bernadette D. Nicolas @BNicolasBM
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RESIDENT Duterte signed into law on Thursday a landmark measure updating the decades-old Corporation Code in a bid to strengthen and simplify corporate governance standards for a more businessfriendly environment. The timely enactment of the law is also seen to reverse the decline in the country’s ranking in the latest Ease of Doing Business Report of the World Bank, wherein the Philippines dropped from 113th to 124th
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out of 190 economies. “I also sign today the Revised Corporation Code, which seeks to simplif y corporate governance standards and establish a more business-friendly environment that will enable corporations and other juridical entities to thrive,” Duterte said in a speech during the ceremonial signing of the measure in Malacañang. Under the old law, Senate Minority Leader Franklin M. Drilon earlier said it is “too difficult” to open a business in the country, citing the numerous and stringent incorporation and regulatory requirements.
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Thursday, February 21, 2019 Vol. 14 No. 134
‘Focus on rice import rules, not NFA overhaul’
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By Jasper Emmanuel Y. Arcalas @jearcalas & Cai U. Ordinario @caiordinario
HE rice liberalization law will take effect on March 5, but the government has not rolled out the new import rules that will guide traders, according to a senior official of the Department of Agriculture (DA). In contrast, inordinate focus and priority was accorded to restructuring the National Food Authority (NFA), a matter that should have been the subject of a separate law, said one critic of the rice tariffication measure. “The real intention of the law
when you read it is to allow the importation of rice through tariffs. The decision to insert the reorganization in the law raises questions considering the significance of the measure. NFA is not only in charge of importation but also food security. NFA’s food security functions
were also removed from the law,” lawyer Jose Manuel “Chel” Diokno said on Wednesday. Agriculture Undersecretary Segfredo R. Serrano had a similar view. He told the BusinessMirror that the government should prioritize the crafting of new import proce-
“The real intention of the law when you read it is to allow the importation of rice through tariffs. The decision to insert the reorganization in the law raises questions considering the significance of the measure. NFA is not only in charge of importation but also food security. NFA’s food security functions were also removed from the law.”—Diokno
HE countr y’s economic managers will formally request the Commission on Elections to exempt at least 145 priority programs and projects from the election spending ban to avoid delays in the government’s massive infrastructure program. In an initial version of the letter addressed to Comelec Chairman Sheriff M. Abas dated February 18, the economic managers said the request is in line with the government’s commitment to increase public spending on infrastructure from 4.4 percent of GDP in 2017 to at least 6.9 percent by 2022. “The exemption will facilitate implementation and ensure that there are no delays and disruption of these national priority projects,” read the letter, a copy of which was distributed to the media. The letter was signed by Socioeconomic Planning Secretary Ernesto M. Pernia, Finance Secretary Carlos G. Dominguez III and Budget Secretary Benjamin E. Diokno. Of the 145 programs and projects, Diokno said in a message to reporters that 59 are being implemented by national government agencies, 82 by government corporations, three by constitutional fiscal autonomy group and one by Autonomous Region in
The exemption will facilitate implementation and ensure that there are no delays and disruption of these national priority projects.” —Economic
managers’ letter Muslim Mindanao. Aside from these, the list also included programs and projects of Department of Public Works and Highways with FY 2019 investment targets included in the Updated 2017-2022 Public Investment Program as input to the 2019 budget preparation. Although the Omnibus Election Code (OEC) also states that the public-works ban during elections See “Projects,” A2
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Unions’ anxieties over industry 4.0 Rene E. Ofreneo
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dures instead of focusing on the restructuring of the NFA. “What are the import rules [by March 5]? The only thing clear [right now] is that the NFA is out of the picture,” Serrano said in an interview on Wednesday.
IKE their counterparts from Europe and North America, the trade unions in the Philippines and in the Asia Pacific are worried over the displacement impact of the ceaseless technology revolution taking place in the world today. In particular, jobs associated with the global value chains (GVCs) of the multinationals, such as semiconductor assembly, shoe manufacture and offshored customer service, are vulnerable to the threats of “re-shoring.” Adidas, which used to have a giant factory in Novaliches in the 1980s and which has some facilities in China, was able to set up in 2017 shoe factories in Germany and USA using 3D printing or additive manufacturing technology. The cheap labor advantage of Factory Asia is now being eroded by advances in robotization, automation and artificial intelligence (AI).
See “Rice import,” A2
Continued on A7
Econ managers to seek exemption from poll ban for 145 priority projects
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This discouraged investors and Filipino entrepreneurs from entering the local market. The new Corporation Code will improve ease of doing business in the country by allowing a oneperson corporation, removing the minimum capital requirement and providing for a perpetual existence of corporation. Since the new code allows a oneperson corporation, local business owners and investors could also stop the practice of naming the entire household as incorporators simply to comply with the stringent requirement of the law. Continued on A8
SSS expects ₧30B added to its funds by new law By Samuel P. Medenilla
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are covered by such inventory shall be furnished a copy thereof,” read a portion of the EO, a copy of which was just released to the media on Wednesday. The DAR, Department of Agriculture and the DENR were also tasked by the President to validate the lands identified to make sure that it falls within the conditions specified in the EO.
HE Social Security System (SSS) expects an initial P30billion addition to its fund this year from the implementation of Republic Act (RA) 11199, or the Social Security Act. Officials of SSS made the disclosure during the stakeholder consultation conducted by the Department of Labor and Employment (DOLE) on Tuesday. “We expect around P30 billion will be added [to the SSS fund] for 2019 alone with the new law,” SSS Actuarial Department representative Tony Gibe said when asked by a migrant sector leader. SSS Acting Vice President for Asia Joy A. Villacorta, however, noted the projection still does not include the additional premiums to be collected from land-based overseas Filipino workers (OFWs) now that they are all required to become SSS members. She said they will first wait for the completion of their consultation with stakeholders before they can compute the possible contributions of new OFW members to the SSS fund.
See “Agri lands,” A2
See “SSS,” A2
SUPER SNOW MOON This image of the Super Snow Moon was taken from the Pagasa Observatory in UP Diliman on Tuesday (February 19) night using a DSLR camera mounted on a 120mm refractor telescope, with the BusinessMirror photographer getting assistance from Pagasa astronomer Lordnico Mendoza. On Tuesday night, the moon was at perigee—the closest distance of the moon to the Earth within 356,761 kilometers. It was also called a “snow moon” because it appeared in the month of February, where the heaviest snow falls this time of the year.
‘Distribute govt-owned agri lands to qualified parties’
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RESIDENT Duterte has ordered the Department of Agrarian Reform (DAR) to acquire government-owned agricultural lands for eventual distribution to qualified beneficiaries. Under Executive Order 75 signed by the President last February 15, all agencies were mandated to identify lands suitable for agriculture and submit a list of these lands to DAR, indicating the location and area of
the said lands, actual use and a legal basis of ownership. “The DAR, in coordination with the DENR [Department of Environment and Natural Resources] shall cause the preparation of an inventory of government-owned lands devoted to or suitable for agriculture and no longer actually, directly and exclusively used or necessary for the purpose for which they have been reserved or acquired. Agencies whose lands
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n JAPAN 0.4730 n UK 68.3626 n HK 6.6653 n CHINA 7.7386 n SINGAPORE 38.6702 n AUSTRALIA 37.4875 n EU 59.3596 n SAUDI ARABIA 13.9498
Source: BSP (20 February 2019 )