Senate ratifies bicam report on RTL bill By Butch Fernandez
@butchfBM
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HE Senate ratified on Monday a bicameral conference committee report endorsing amendments to the Retail Trade Liberalization Act, seeking to lower the capitalization requirement for foreign retailers from $2.5 million to $500,000 or from P125 million to P25 million. Passing the remedial legislation for the 1991 Act, said Senate Majority Leader Juan Miguel Zubiri, was intended to attract more foreign direct investments into the country, “thereby fostering competition, lowering market prices, and creating more local jobs.”
“While we gladly welcome foreign investors, we must always prioritize the interests of our local business sector, particularly our MSMEs who make up 99 percent of our corporate taxpayers.”—Senate Majority Leader Juan Miguel Zubiri
As one of its principal authors, Zubiri had batted for keeping the capitalization level at P25 million, against the House version’s much lower proposal of P10 million. “We did this to protect our micro, small, and medium enterprises,” Zubiri explained. “Because while we gladly welcome foreign investors,” he added, “we must always prioritize the interests of our local business sector, particularly our MSMEs who make up 99 percent of our corporate taxpayers. Lalo na ngayong patuloy pa rin and pandemya at marami pa sa kanila ang hindi nakaka-recover mula dito [Especially now that the pandemic still rages and many of them have not recovered].” Zubiri affirmed the ratified bicameral conference report also mandates
a per-store amount requirement of P10 million for foreign retailers with more than one physical store. This is seen to prevent foreign retailers from breaking up their investment to create smaller shops that will compete with MSMEs. “We really had to find a balance bet ween attracting foreig n investors and also protecting our local sectors,” Zubiri added. “And overall I think we have hit a good compromise. I think this is a landmark bill that will do wonders for our economy, particularly as we recover from the pandemic. I am especially hopeful about all the employment opportunities that this will open up for our people,” the Majority Leader added.
GO SLOW ON UTILITY TAG IN PSA, SENATORS TOLD
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Tuesday, September 21, 2021 Vol. 16 No. 342
P25.00 nationwide | 2 sections 20 pages |
House OKs bill creating Boracay devt agency
By Tyrone Jasper C. Piad
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@Tyronepiad
OREIGN business groups have cautioned against placing foreign ownership restrictions on the services sector, particularly citing transportation and telecommunication, in order to liberalize the economy.
In a joint statement on Monday, several foreign chambers welcomed the Senate’s bill amending the Public Services Act (PSA), which is still under deliberation. The business groups warned the Senate about tagging many sectors as a public utility because these will be subject to 40-percent foreign equity restrictions. “Any moves to retain 60-40 foreign equity restrictions, specifically for the major transportation and telecommunications sectors, and add legislative franchise requirements where none existed, will thwart the intention of the bill and the positive impact it can bring to the business community and consumers,” the foreign chambers said. “By opening up key economic sectors and limiting the definition of public utilities to natural monopolies, we believe this reform will be one of the most important reforms of President Rodrigo Duterte and the 18th Congress,” they said. The bill is expected to encourage investments that can generate jobs, support infrastructure and boost economic recovery of the country amid the pandemic. The current bill identifies the distribution of electricity; transmission of electricity; and water pipeline distribution systems and sewerage pipeline systems as public utility. But other public services may be considered as public utility given certain criteria, including them being a natural monopoly. The foreign business groups stressed that transportation and telecommunications are not natural monopolies. “There are numerous transportation companies and three telecommunications companies that operate viably in the country. It is crucial to apply the proposed definition consistently in identifying the sectors that should be considered public utilities to maintain the internal integrity of the bill,” they explained.
By Jovee Marie N. dela Cruz
@joveemarie
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METROPOLITAN Manila Development Authority Chairman Benhur Abalos, Makati City Mayor Abigail Binay and Trade Secretary Ramon Lopez inspect business establishments at the Rockwell Center, a high-end mixed-use area in Makati City, to check compliance with health guidelines being implemented under Alert Level 4, the highest level in the new Covid alert system. Story in Companies, page B1. ROY DOMINGO
ADB: FOCUS ON QUALITY OF LIFE FOR YOUNG, OLD By Cai U. Ordinario @caiordinario
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AVING smaller populations may allow countries to attain a more sustainable recovery from Covid-19, according to experts from the Asian Development Bank (ADB). In an Asian Development Blog, Honorary Senior Research Fellow Jane O’Sullivan and Advisor and Chief of Knowledge Advisory Services Center Susann Roth said slowing population growth can lead to better quality of lives not only for young people but also seniors. If there are fewer babies born, countries can ensure that they are taken cared of through proper nutrition and education while seniors can extend their years of productivity, allowing them to continue providing for themselves and their families.
“It’s time to stop worrying about ‘getting old before getting rich.’ A lower proportion of working-age people will not impede getting rich, because it strengthens rather than shrinks the work force. More consistent and better employment will allow households to save for retirement,” O’Sullivan and Roth said. “Better health care means more people will choose and be able to work past 65, without it needing to be legislated. Easing pressures on housing and natural resources will improve community resilience,” they added. O’Sullivan and Roth said increasing populations is costly for economies. They said for every 1percent annual increase in population growth rate, governments need to spend 7 percent of GDP to address the needs of these citizens. This means spending for ad-
ditional houses, roads, hospitals, schools, power stations, sewage works and other durable items, which are needed for them to be able to enjoy the same or higher level of lifestyle of people currently in the population. If countries will spend less on these, O’Sullivan and Roth said, they can spend more for better health and education services. This will also allow governments to spend more for pensions. The authors said spending more for pensions of seniors will also be likened to an economic stimulus that provides a muchneeded boost for consumption and economic growth. “Good care at both ends of life should be part of the social contract between generations, provided proudly, not with miserly lamentations,” O’Sullivan and Roth said.
“Now is the time for them to roll out universal pension coverage and invest in preventive health care and better living conditions to allow for healthy aging. This spending will create industries around products and services for older people and boost local economies, helping to make the expanding program affordable,” they also said.
Contraceptive use
MEANWHILE, in the Philippines, telemedicine support platforms are helping more women get access to modern contraceptives amid the pandemic. In a statement, Bayer Philippines said it’s “Ask Mara” chatbot on Facebook is one such platform that has expanded its features to include access to teleconsultation services. See “ADB,” A2
HE House of Representatives on Monday approved on third and final reading the Duterte administration’s priority bill creating the Boracay Island Development Authority (BIDA), a body that tourism stakeholders and island groups opposed because it was first tailored to become a powerful state corporation. Voting 192 affirmative, 7 negative, and 0 abstentions, lawmakers approved House Bill 9826 or the proposed BIDA Act.Under the bill, the proposed government-owned and -controlled corporation (GOCC) to be known as BIDA shall be created to ensure continuous development of the famous tourist area and carry on the gains from its earlier rehabilitation. The bill said BIDA shall manage, develop, operate, preserve, and rehabilitate the Boracay Island Development Zone, which shall include the entirety of Boracay Island and surrounding islets including Barangay Caticlan. It addded the development zone shall be transformed into a selfsustaining industrial, commercial, leisure, financial, and investment center to generate employment opportunities and attract and promote productive local and foreign investments, while strictly prioritizing the protection and preservation of the natural resources and biodiversity of Boracay Island. The bill also said a Boracay Action Plan geared towards investment sustainability and balanced development in the island shall be formulated and implemented. The measure said international standards of excellence in all tourism facilities and services shall be maintained with the end goal of promoting Boracay Island as an environmentally sustainable and safety-conscious tourism destination. It added programs and activities such as eco-farm tourism, lifestyle, medical and wellness, local arts and crafts, outdoor recreation, and other social activities like family reunions and celebrations, corporate conferences, and those with environmental preservation and conservation themes shall be promoted.
See “Go,” A2
PESO EXCHANGE RATES n US 49.9730
See “House,” A2
n JAPAN 0.4545 n UK 68.6429 n HK 6.4213 n CHINA 7.7408 n SINGAPORE 37.0692 n AUSTRALIA 36.2754 n EU 58.6183 n SAUDI ARABIA 13.3258
Source: BSP (September 20, 2021)