Retail trade lib law included in updated FINL
‘Close borders, cut Omicron exposure risk’ By Cai U. Ordinario @caiordinario
T C
By Cai U. Ordinario
HE updated Regular Foreign @caiordinario Investment Negative List (FINL) incorporates proviLOSING the country’s borders sions from the Retail Trade Liberis one of the most immediate alization Act (RTLA), according courses of action the govern- to the National andlatDevelment must take toEconomic prevent the opment Authority (Neda). est Covid-19 variant, Omicron, from Trade, Services, and InreachingNeda’s Philippine shores, accorddustry Staff (TSIS) told Businessing to local economists. Mirror draftisofathe FINL has T he new that var aiant threat, been submitted to the Office e s p e c i a l l y w it h t he hol id ayof s the President for approval. coming up and more foreigners drafttoalready being aThe llowed travelincludes to the the amendments in the RTLA, but not Philippines, De La Sa lle Univerthe amendments contained in the sit y economist Mar ia Ella Oplas Public Service Act (PSA) and Fortold BusinessMirror. eign Investment Act (FIA), which The holidays usually bring in haveFilipino only beenWorkers recently(OFWs) passed into Overseas law. who are eager to spend Christmas
the WorlD »a9
Shanghai DiSneylanD cloSeS amiD biggeSt coviD flareup
“In the current IRR (Implementing Rules and Regulations) the FIA however, it was forstated withoftheir loved ones, while that amendments to List A may eigners living in temperate regions be made by the Neda any time usually want to relax in tropical to reflect changes made This by law countries like the Philippines. regarding the extent of foreign year’s influx of OFWs is expected to equity since participation in any spebe heavier many of them were cific area of economic activity,” unable to come home for the holidays the FIA IRR stated. in December 2020. Neda said it may is betopossible “My recommendation protect to issue the changes in the FINL earthe borders. Do not allow people with lier than the two-year effectivity a history of travel to countries with of the negative if the provision positive cases to list enter,” Oplas said. in the FIA’s IRR is retained. “We should be more restrictive. [We on protective the amendments have toBased be] more in termsunder the RTLA, the government will of our measures.” lower the required paid-up capital Oplas said that while this will be for foreigh retail enterprises a setback to some industries, thisand for other purposes. is a fair measure considering that Section of the placing RTLA or this could help 5prevent theRepublic Act 11595 signed in July country in another strict lockdown,
2021 allows foreign retailers to operate in the country upon registration with Securities and which, she said, thethe economy can no Exchange Commission (SEC) or longer afford. the Department of Trade and In“It is better that we do protective vestmentmeasures (DTI). than get expreventive These firms must: have miniposed again. We have a lot to alose,” mum paid-up capital of P25 Oplas said. “We should do it nowmilso lion; haveopen a minimum investment that we can just before ChristofIfatitleast P10 million per open store; mas. gets contained, we can maintain a paid-up capital of P25 it again.” million at all times unless they Ateneo Center for Economic Rehaveand informed SEC or(ACERD) DTI that search Development they are ceasing operations. FiAssociate Director Ser Percival nally, their countries of origin K. Peña-Reyes said closing thedo not prohibit thewould entry of country’s borders beFilipino effecretailers. tive but should still adhere to the “Failure inHealth the Philstandards setto bymaintain the World ippines the paid-up capital required Organization (WHO). in the preceding paragraph prior What is needed, Peña-Reyes toldto notification of the SEC or the DTI, this newspaper, is for travel restricwhichever is appropriate, shall subtions to be put in place swiftly and
ject the foreign retailer to penalties or restrictions on any future trading activities/businesses in the for government to be proactive in Philippines,” the RTLA stated. imposing them. The Nedainstances is tasked to review Previous when and the revise the country’s RFINL, which country had the opportunity to imcontains on not foreign pose travel restrictions restrictions did preinvestments and the practice of vent the spread of Covid-19. That was professions based on the Constitumainly because the decision was not tion immediately, and Philippine made helaws. said. The RFINL contains “Kung papatay patayinvestment [If we’re areas/activities foreign equislow] and we getwhere caught flat-footty participation is limited by maned, [that’s risky] We were too redate of the Constitution speactive instead of proactiveand before. cific laws. It also consists of investWe should learn from that,” Peñamentsaid. areas/activities where foreign Reyes “It’s a delicate balancing equity participation is limited for act. We need to push testing and reasons of defense, security, risk tracing to be properly informed public healthBlanket/shotgun and morals, and oftoour decisions. protection of smalland mediumapproaches could have dire consesized domestic market enterprises. quences on the economy.” See “Retail,” A2 See “Omicron,” A2
MOODY’S BAA2 NATL GOVTASSIGNS BORROWINGS RATING FORDIP PHL BONDS FOR 10 MOS TO P2.75T w w
n
n Tuesday, March 29, 22, 2021 2022 Vol. 17 No.52 No. 165 Monday, November
Duterte signs new Public Omicron risk spurs revival Service Act, completing of quarantine liberalization reform bills rules in PHL
By Bernadette D. Nicolas By Bernadette D. Nicolas
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@BNicolasBM @BNicolasBM
& Bianca Cuaresma @BcuaresmaBM
HE national HE Philippine government’s government gross is eyeing borrowings astoof raise funds fromshrank the end-October offshore debt market by almostbenchmark6 percent by offering year-on-year sized US dollar-to P2.75 trillion. denominated 5-year
By Samuel P. Medenilla @sam_medenilla
F
and 10.5-year global bonds and itsthe25-year Latest data from Bureau of the maidenshowed green Treasury thatbonds. the government’s gross borrowings during the 10-month period fell by 5.99 percent Proceeds for the 5-year from P2.92 trillion a year ago. and 10.5-year tenors will be With only two monthsused left for for general budget financing while this year, the latest figure is already the 25-yearto green willofalso equivalent 89.6bonds percent its be used to finance/refinance asP3.07-trillion borrowing program. sets in line with the domestic government’s Broken down, gross bor“sustainable finance rowings from Januaryframework,” to October based on document seen by resettled at aP2.23 trillion, down by porters on Monday. 5.08 percent from P2.35 trillion Officials earlier said the Philipin 2020. pines’s of at least The first-ever bulk of offering the amount was $500 million in green bonds in the sourced from Fixed Rate Treasury offshore debt market will help raise Bonds (P1.19 trillion), followed by funds for the country’s clean short-term borrowings fromenergy Bangprojects and other sustainable iniko Sentral ng Pilipinas or BSP (P540 tiatives to mitigate the ill effects of billion), Retail Treasury Bonds/Prethe worsening climate change. Early myo Bonds (P463.3 billion), Retail this year,Dollar the government inauguOnshore Bonds (P80.84 bilrated the sustainable finance framelion). In the same period, there was workafor bonds toof support its also netgreen redemption Treasury climate-action commitments. Bills amounting to P43.94 billion. The new dollarmeans bond Net debt3-tranche redemption offering is expected to be rated Baa2 there were more debts repaid comby Moody’s Investors Service, BBB+ by pared to the amount borrowed durS&P Global Ratings and BBB by Fitch ing the period. Ratings. The settlement date forborthe Meanwhile, gross foreign debt papers is slated on March 29. rowings in the same period also Joint lead managers joint contracted by 9.7 percent and to P518.7 bookrunners for three-tranche isbillion from last year’s P574.4 billion. sueThis are was Bankraised of China Citigroup, through global Credit (P146.17 Suisse, Deutsche Bank, bonds billion), program Goldman Sachs, Mizuho Securiloans (P139.98 billion), euro-deties, Morgan Stanley, Standard nominated bonds (P121.97 billion), Chartered Bank and UBS. a project loan (P86.41 billion), and In June last year, the governyen-denominated samurai bonds ment borrowed $3 billion (about (P24.19 billion). P145.8 See billion) through its suc“Borrowings,” A2 cessful issuance of dual-tranche dollar-denominated global bonds.
PEOPLE walk past the mural of Gat Andres Bonifacio at Manila City Hall Underpass. The country will celebrate the 158th birth anniversary of Filipino revolutionary hero Gat Andres Bonifacio on Tuesday, November 30. ROY DOMINGO
MOODY’S announced on Monday afternoon that it is assigning senior unsecured ratings of Baa2 to the dollar-denominated global bond offerings by the Government of the Philippines, including tranches maturing in 2027, 2032 and 2047.
OREIGNERS are now allowed to own 100 percent equity in most sectors in the country after President Duterte signed the amended Public Service Act (PSA). The new policy will apply to all sectors except for crucial services like transmission and distribution of electricity, water and pipeline sewerage, seaports, petroleum pipeline, and public utility vehicles (PUVs). Duterte lauded the signing of the new legislation, which he said will help the country’s recovery from the economic impact of the pandemic. “I believe that through this law, the easing out of foreign equity restrictions will attract more global investors, modernize several sectors of public service and improve the delivery of essential services,” Duterte said in a speech during the ceremonial signing of the new law last Monday. “It is also expected to generate more jobs for Filipinos, improve basic services for Filipino consumers, and allow for the exchange programs as President Duterte of skills and technology with the counis expected to sign the industry try’s foreign partners,” he added. development plan in early 2022.
OVER 3-M FARMERS LISTED FOR P75-B COCO LEVY FUND By Jasper Emmanuel Y. Arcalas
dating its registry following the them. This allows everyone to see enactment of the Coconut Farmwho are listed in the registry and if ers and Industry Trust Fund law. farmer doesn’t see his name then he ORE than 3 million Rosales explained that about shall coordinate with the PCA imcoconut farmers and 500,000 coconut farmers and mediately,” he explained at a recent workers are now regisworkers were added to the PCA’s dialogue with coconut farmers. tered with the government’s reg2018 list that had about 2.5 million “On the other hand, if people istry, which serves as the basis coconut farmers and farm workers. would see names on the list and for the number of people to be The PCA’s next step is to conthey think they are not coconut covered by the utilization of the duct an exclusion-inclusion profarmers or their details are incorTHIS combo photo shows Chinese structures taken February 8, 1999, top, and March 20, 2022, at the Mischief Reef in the disputed South China P75-billion coconut levy fund. cedure by making the updated rect, they can report it to the PCA Sea. In stark contrast to Chinese President Xi Jinping’s past assurances that Beijing would not transform the artificial islands in contested waters Philippine Coconut Authority farmers’ registry public, providfor immediate action,” he added. into military bases, US Indo-Pacific commander Adm. John C. Aquilino said China has fully militarized at least three of several islands it built in (PCA) Deputy Administrator Roel ing everyone the opportunity to The PCA official noted that the disputed South China Sea, arming them with anti-ship and anti-aircraft missile systems, laser and jamming equipment and fighter jets in an M. Rosales said about 3.11 million check the veracity of the list, Rothe completion of the initial list increasingly aggressive move that threatens all nations operating nearby. AP/AARON FAVILA coconut farmers and farm worksales added. of coconut farmers registry would ers have been registered with the “The list will be posted in public be just in time for the expected government since it started upspaces where people can easily see rollout of coconut levy-funded @jearcalas
M
BIZ GROUPS BACK CALL FOR RETURN TO WORK PLACE By VG Cabuag
this is a “significant step” towards
government and the private sec-
ROPERTY developers, retailers and restaurant operators and other business groups are backing the government’s call for the return to workplace of their employees, mainly the business process outsourcing firms, saying
In a statement, the multisectoral umbrella business groups said the revival of business activity in general, and key economic centers in particular, are now viewed as a key milestone towards recovery. “This position is shared by
and medium enterprise segment which has retained only a fraction of the 5.38 million jobs nationwide it generated in 2019. All the aforementioned have asked their employees to return to their places of work,” it said.
PESO EXCHANGE RATES n US 50.4600
Investment grade rating
P25.00 P25.00 nationwide nationwide || 22 sections sections 20 20 pages pages ||
P
Rosales said the PCA will not stop updating its list of coconut farmers and enjoined them to register in order to reap the benefits of the decades-long idled coconut levy fund. “We will not stop at 3.1 million. We hope that more individuals will register in our coconut farmers registry,” he said. The updating of the coconut farmers registry is mandated by Republic Act (RA) 11524 or the Coconut Industry Trust Fund Act. See “3-M farmers,” A2
By Samuel P. Medenilla @sam_medenilla
I
NTER NATIONA L concerns over the possible spread of the more infectious Omicron Covid-19 variant prompted the government to reimpose mandatory “I believe that through this law, the easing facility-based quarantine for all out of foreign equity restrictions will attract arriving passengers in the country. more global investors, modernize several Acting Presidential spokespersectors of public service and improve the son Karlo B. Nograles announced delivery of essential services.” on Sunday that the Inter-Agency –President Rodrigo Roa Duterte Task Force for the Management of Emerging Infectious Diseases He said PSA will complement Re(IATF) suspended the implemenpublic Act (RA) No. 11647 amending tation of its Resolution No. 150the Foreign Investment (FIA), A (s.2021), effectively Act imposing which he also signed earlier this stricter protocols for all inbound month in helping generate more travelers. economic activities in the country. To note, IATF Resolution 150RA 11647 created thevaccinated Foreign InA had allowed fully vestment Promotion andGreen and Marnon-visa travelers from List keting Plan (FIPMP) and eased the areas to enter the country withrequirements for foreign investors out the need for facility-based to operate inasthe country. quarantine long as they secure The FIA and amendatory negative ReversePSA Transcriptionlegislation, along with the measure Polymerase Chain Reaction (RTrevising the 21-year old Retail PCR) test within 72 hours Trade prior Liberalization Law, were part of the to their departure. package of liberalization of “Except for countries reforms classified the Duterte administration. as ‘Red,’ the testing and quarantine A2 protocolsSee for“Duterte,” all inbound international travelers in all ports of entry shall comply with the testing and quarantine protocols for ‘Yellow’ list countries,” Nograles said, citing the provision of IATF Resolution No. 151-A. He noted Hong Kong, which has confirmed a case of the Omicron variant, will also fall under the Yellow list countries. The suspension of the rules for “Green List” countries will be in effect from November 28, 2021 to December 15, 2021.
n JAPAN n HK 6.4722 n CHINA 7.9013 ntor, SINGAPORE n AUSTRALIA 36.2807 n EU 56.5758 n SAUDI ARABIA 13.4531 @villygc0.4374 n UK 67.2329 the post-pandemic normalcy. especially 36.8968 the micro, small
Continued on A2
Source: BSP (November 26, 2021)
See “Biz groups,” A2
See “Moody’s,” A2
PESO EXCHANGE RATES n US 52.3360
n JAPAN 0.4395 n UK 68.9788 n HK 6.6892 n CHINA 8.2270 n SINGAPORE 38.6073 n AUSTRALIA 38.7391 n EU 57.8470 n SAUDI ARABIA 13.9507
Source: BSP (March 21, 2022)