BusinessMirror January 13, 2022

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FIRB directs BOI to finalize SIPP in January By Bernadette D. Nicolas @BNicolasBM

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HE Fiscal Incentives Review Board (FIRB) directed the Board of Investments (BOI) to finalize this month the Strategic Investment Priorities Plan (SIPP). During the meeting of the Cabinet-level interagency board last month, FIRB and Finance Secretary Carlos G. Dominguez III pointed out that the release and publication of SIPP is only the first step in attracting potential investors. The SIPP will determine the priority industries, projects, and activities that can be granted fiscal incentives by the government

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under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. “As I have said before, once the categories are identified, the next step is for each of the investment promotion agencies [IPAs] to identify the specific companies they want to invite, and then discuss with them what it would take for them to invest in the country,” Dominguez was quoted as saying during the meeting. Trade Secretary Ramon Lopez, who co-chairs the FIRB, agreed with Dominguez. While the SIPP has yet to be finalized, the current SIPP being used is based on the 2020

Investment Priorities Plan of the BOI, an attached agency of the Department of Trade and Industry (DTI). Given that a number of industry studies and parameters have already been considered in the drafting, Dominguez urged the BOI to finalize the SIPP for presentation to the FIRB Board this month. House Ways and Means Committee Chairman and Albay Rep. Joey Salceda urged DTI last month to finally finish the SIPP mandated under the CREATE law, saying this creates uncertainty as industries are still unsure about the tax incentives that they will

receive in this country. Salceda also warned that the DTI should finish SIPP before March 2022, which is the first anniversary of the measure. Otherwise, the lawmaker said he will be forced to call oversight hearings. Responding to Salceda’s remarks, Dominguez told finance reporters in a recent interview that they are working with DTI to come up with the SIPP plan. “But you know, among our discussions, let us really focus on the industries that we want to bring in. Quite frankly, that See “FIRB,” A2

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Bankers’ group vows continuous operation of PHL financial market

By Cai U. Ordinario @caiordinario

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ESPITE the spike in infections from the Covid-19 omicron variant, the Philippines is poised to register the fastest growth in the Asean this year and the second highest growth in 2023, according to the World Bank.

By Bianca Cuaresma @BcuaresmaBM

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Based on the World Bank’s Global Economic Prospects, the country’s projected economic growth rate of 5.9 percent this year is the fastest growth expected in the Asean, while the 5.7 percent expected next year will be second only to Vietnam’s 6.5 percent. In December last year, the World Bank’s Philippine Economic Update titled Regaining Lost Ground, Revitalizing the Filipino Workforce stated that growth will be significantly lower than the prepandemic growth rate of over 6 percent. (Story here: https://businessmirror.com. ph/2021/12/07/wb-report-covidscarring-cuts-phl-growth/) “Growth is projected to be 5.9 percent in the Philippines in 2022, supported by sustained public investment and recovering household consumption, and then moderate to 5.7 percent in 2023,” the World Bank said. However, the World Bank warned that the pandemic-induced inequality would be long-lasting and will prevent intergenerational socioeconomic mobility. The World Bank said emerging market and developing economies, See “growth,” A2

A BARANGAY public safety officer mans a vaccination checkpoint at Barangay 183 in Pasay City, which reported that all 201 of its barangays have cases of coronavirus infections. The Pasay Epidemiology and Surveillance Unit reported 322 active cases. NONIE REYES

PHL SEEN TO BREACH PRE-COVID FDI FLOWS IN 2022 By Jovee Marie N. dela Cruz @joveemarie

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N economist-lawmaker is confident that the Philippines will breach its prepandemic foreign direct investments (FDI) inflows this 2022 as the country completes its three main investment liberalization reforms in the Public Service Act, Retail Trade Liberalization Act, and Foreign Investment Act amendments together with strong implementation of the Corporate Recovery and Tax Incentives for Enterprises or CREATE Law. On Wednesday, House Committee on Ways and Means Chairman Joey Sarte Salceda said CREATE Law continues to deliver on its promise of higher foreign direct investments, as data released by the Bangko Sentral ng Pilipi-

nas (BSP) showed FDI rising for the fifth straight month. “This means that every month since CREATE IRR [implementing rules and regulations] was released, our FDI increased year-on-year. Data showed that FDI rose 98.9 percent year-on-year to $855 million in October from $430 million a year earlier,” he said. Indeed, Salceda said with CREATE, even in a bad year, the Philippines is likely to match or exceed FDI levels in 2018 and 2019. “I am also confident that we will see an even better year for FDI in 2022 as the country completes its three main investment liberalization reforms in the Public Service Act, Retail Trade Liberalization Act, and Foreign Investment Act amendments,” he added.

Earlier, the Department of Finance said the passage into law of the Foreign Investment Act, Public Service Act, and the Retail Trade Liberalization Act will lead to better wages in the country without raising the minimum wage. “Medium to long term, the passage of the amendments to the FIA, Public Service Act, and the RTLA will help bring in more capital, generate more employment,” DOF Chief Economist Gil Beltran. Moreover, Salceda said the BSP’s figure brings the country’s 10-month FDI to $8.1 billion, saying, “I am optimistic that we may breach, or be very close to the USD 10-billion mark, which will mean we have exceeded our prepandemic FDI inflows in 2018 and 2019, and bring us close to our 2017 FDI levels.”

“I also welcome growth in reinvested earnings, another main point of CREATE. Reinvested earnings reached $77 million, 7.1 percent higher than $72 million in October 2020.... Again, CREATE promised to end the uncertain in the country’s tax incentive regime,” he added. According to Salceda, the lower chamber will continuously working with Department of Trade and Industry, Board of Investment, Department of Finance, and National Economic and Development Authority for the immediate release of the Strategic Investment Priorities Plan (SIPP), which is a key to exceed previous years’ FDI. “Moving ahead, I will be working with the DTI, BOI, DOF, and Neda to release the Strategic See “PHL,” A2

HE Bankers Association of the Philippines (BAP) said they are maintaining the daily schedule of the interbank USD/PHP spot trading and swap trading hours despite some banks’ decision to shorten their operating hours due to the surging Covid-19 cases in the country. The daily schedule of the interbank USD/PHP spot trading and swap trading will remain open from 9:00 a.m. to 4:00 p.m. daily, according to the BAP. “This step shall guarantee the continued operation of financial markets, therefore enabling market participants to continue meeting their liquidity needs as well as making appropriate hedges in their portfolios and balance sheets for risk management purposes,” the BAP’s statement read. The group also seeks to assure “the public that its member-banks shall continue to provide financial services to their clients amid the current rise of Covid-19 cases in the country,” it added. For retail services such as foreign exchange, the BAP urged the public to check with their respective banks’ websites and social media pages to stay updated regarding changes in the availability of these services. “Our member-banks’ operational adjustments are implemented to ensure that your banking requirements are met throughout this pandemic. We will continue to provide updates on financial services to the public. In the meantime, we encourage everyone to continue practicing health protocols for their safety and protection,” the BAP said. Over the weekend, both the BAP and the Chamber of Thrift Banks (CTB) issued statements, ensuring their clients of continued services amid the surge of cases. Several banks have already announced shorter operating hours amid the Covid-19 surge, especially for their branches in the National Capital Region (NCR). Some of these banks include BDO Unibank Inc., Bank of the Philippine Islands (BPI), Metrobank, Landbank of the Philippines, Philippine National Bank, Security Bank and PSBank.

PESO EXCHANGE RATES n US 51.1740 n JAPAN 0.4439 n UK 69.7860 n HK 6.5647 n CHINA 8.0295 n SINGAPORE 37.8982 n AUSTRALIA 36.8913 n EU 58.1746 n SAUDI ARABIA 13.6337 Source: BSP (January 12, 2022)


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