MANILA, Philippines – Japan-based Rating and Investment Information Incorporated (R&I) retained the Philippines' investment grade rating, as its economy is seen to bank solid growth fueled by the government's aggressive infrastructure plan.

The Tokyo-based debt watcher affirmed the one notch above the minimum investment grade rating of BBB for the Philippines on a stable outlook.

"The Philippines' economy is expected to post solid growth, driven by aggressive infrastructure investment under the Rodrigo Duterte administration," R&I said in a statement.

Economic managers had pegged the gross domestic product (GDP) growth target at 7% to 8% over the medium term, as the administration of President Rodrigo Duterte intends to spend as much as $190 billion for the country's much-needed infrastructure projects. (READ: Fitch upgrades Philippines' credit rating)

The Philippines has registered 75 quarters of uninterrupted growth as the country's economic growth accelerated to 6.9% in the 3rd quarter from the revised 6.7% in the 2nd quarter.

The Bangko Sentral ng Pilipinas (BSP) set an inflation target of 2% to 4% between 2017 and 2020.

Keeping an eye on income

"R&I will keep an eye on whether solid economic growth will bring about a steady rise in income levels," the debt watcher said.

"Going forward, given likely inflation pressure from tax reforms, higher oil prices, and the weaker currency, as well as from buoyant domestic demand, consumer price trends, and the way the central bank controls the situation would draw our attention," it added.

R&I said Philippine inflation would "not be a drag on the economy" even if there is an upward pressure from oil price trends and tax reform packages.

"Eyes are on the BSP's handling in inflation control while preserving economic growth momentum," R&I said.

The debt watcher said it is important for the Philippines to sustain the momentum of investment here and abroad through an improved business environment.

"In addition to robust private consumption backed by stable remittance inflows from overseas Filipinos, growth in investment has been increasing in recent years," it added.

R&I said it would not immediately take a negative view of the shift to a current account (CA) deficit after 13 straight years of surpluses since 2003 due to strong capital goods imports that could help sustain economic growth.

While increasing expenditure particularly on infrastructure investment, it added the government gives due consideration to revenue generation and fiscal sustainability, as exemplified by the ongoing reforms to broaden the tax base. – Rappler.com

MANILA, Philippines – Newly-invigorated Philippine Telegraph & Telephone Corporation (PT&T) and a Chinese wireless network firm agreed to explore the possibility of offering free wireless broadband services during natural disasters.

In a disclosure to the Philippine Stock Exchange (PSE) on Tuesday, December 19, PT&T said it signed a memorandum of agreement with Chengdu Zhongxing Tiantong Technology Corporation.

"The purpose of the agreement is to explore the feasibility of engaging in a project that will provide free wireless broadband services in designated public areas before, during, and after the occurrence of disasters in any part of the country," PT&T said.

"Within an agreed period the parties will conduct a study of the feasibility of the project and thereafter discuss and agree on a Definitive Agreement to push forward the same," it added.

PT&T noted that the actual participation of each party, to be reflected in a definitive agreement, will be discussed after the study is completed in 90 days.

The Philippine firm, which is under new management, has been touted as a potential 3rd player in the country's telecommunications industry.

PT&T previously said it intends to create a joint venture with Chengdu Zhongxing Tiantong Technology Corporation to expand its broadband business. It has also said it is open to partnering with China Telecom.

No less than President Rodrigo Duterte invited Chinese telcos to invest in the Philippines, with China Telecom now expected to come in.

Malacañang has said it wants to ensure that China Telecom can begin its Philippine operations by the 1st quarter of 2018. – Rappler.com

MANILA, Philippines – 2018 is when the government's Build, Build, Build program is expected to really kick in, garnished by big-ticket projects such as the long-awaited Metro Manila Subway and the expansion of the Clark International Airport, the Department of Budget and Management (DBM) said Wednesday, December 20.

Government spending this year has gone up a notch with the latest DBM data showing that expenditure from January to October reached P2.241 trillion, up 10% from the same period in 2016.

For October alone, government spending was up 28.2% to P226.9 billion with spending on infrastructure accounting for P51.5 billion for the month, up 17.8% from October 2016.

The DBM noted that this was due mainly to road construction and flood control rehabilitation projects of the Department of Public Works and Highways (DPWH) as well as the purchase of equipment by the Philippine National Police (PNP) under its Capability Enhancement Program.

The government agency added that civil works for Light Rail Transit (LRT) Lines 1 and 2 extension projects of the Department of Transportation (DOTr) also contributed to the higher infrastructure and other capital spending.

The government is readying the rollout of 6 big projects next year as the DOTr and DPWH budgets have increased by 40.3% and 24.4%, respectively. (READ: 'Build, build, build' gets a third of proposed 2018 national budget)

These include some of the better known ones from the 75-project Build, Build, Build lineup which includes 6 air transport projects, 12 rail and urban projects, and 4 water transport projects.

Beyond transport, the campaign also includes 4 major flood management projects, 11 water supply and irrigation projects, 4 power projects, and 3 other public infrastructure projects.

Metro Manila Subway and Clark Airport expansion

Top of mind is the country's first-ever mass underground transport system, the P355.6-billion Metro Manila Subway Project (MMSP) with phase 1 expected to start by the 3rd quarter of 2018, according to the DOTr.

It is expected to have 13 stations, including one at the Ninoy Aquino International Airport (NAIA), and cut down commuting time from Quezon City to Taguig City to 31 minutes, while accommodating around 370,000 passengers on its first year of operations.

Phase 1 will entail a 25.3-kilometer subway connecting north and south of Manila (from Mindanao Avenue, Quezon City to Food Terminal Incorporated in Parañaque City) and NAIA. It is being financed through Japanese official development assistance (ODA).

The project completion will extend past the Duterte administration as the subway is expected to begin partial operations by the 4th quarter of 2025, with full completion targeted for 2027.

Another marquee project is the expansion of the Clark International Airport which broke ground on Wednesday.

The project, originally estimated at P12.55 billion, includes the construction of a new passenger terminal building to accommodate 8 million passengers annually, as well as required associated facilities – both landside and airside, to support the operations of the Clark International Airport. 

The government announced on Tuesday, December 19, that the group of publicly-traded Megawide Construction Corporation and Bangalore-based GMR Infrastructure Limited won the rights with its "lowest calculated bid" of P9.36 billion.

The Bases Conversion and Development Authority (BCDA) is expected to bid out the operations and maintenance of the Clark International Airport to the private sector in 2018. – Rappler.com

LUXEMBOURG, Luxembourg (UPDATED) – The EU's top court ruled on Wednesday, December 20, that Uber is an ordinary transportation company instead of an app and should be regulated as such, in a decision that will be closely watched around the world.

The case is yet another thorn in the side for US-based Uber, which has drawn the fury of taxi drivers and officials for flouting local regulations.

It also comes the same week as one of its drivers admitted to the attempted rape and murder of a British embassy worker coming home from a night out in Beirut, Lebanon.

"The service provided by Uber connecting individuals with non-professional drivers is covered by services in the field of transport," said the Luxembourg-based European Court of Justice.

"Member states can therefore regulate the conditions for providing that service."

Uber, the biggest name in the growing gig economy, claims it is a mere service provider, connecting consumers with drivers in more than 600 cities.

Uber has run into huge opposition from taxi companies and other competitors who say this allows it to dodge costly regulations such as training and licensing requirements for drivers and vehicles.

The case was brought by a taxi drivers' association in the Spanish city of Barcelona, where belief runs high that Uber is a taxi company that should be subject to rules governing such vehicles.

Ruling 'won't change things'

Uber said the ruling would make little difference in practice.

"This ruling will not change things in most EU countries where we already operate under transportation law," an Uber spokesperson said in an emailed statement.

"However, millions of Europeans are still prevented from using apps like ours."

In a dense legal judgement, the ECJ said that Uber was a service that connects "by means of a smartphone application and for remuneration non-professional drivers using their own vehicle with persons who wish to make urban journeys."

That means it is "inherently linked to a transport service and, accordingly, must be classified as a 'service in the field of transport' within the meaning of EU law."

The EU court's senior adviser had said in a legal opinion in May that Uber was indeed a transport company.

Uber has had a rough ride in Spain, where a judge ruled in 2014 that its UberPop service risked breaking the law, leading to the Barcelona submission to the ECJ.

Early last year it decided to only operate a limited a version of its UberX service in Spain which uses licensed, professional drivers instead of the amateurs who had previously worked via the UberPop application.

Uber has already had problems with the law in several European countries, particularly France where the company was forced to overhaul its business model.

In November a labour court in London, where the company is threatened with losing its license, said it had to pay the drivers a minimum wage and give them paid leave.

Uber does not employ drivers or own vehicles, but instead relies on private contractors with their own cars, allowing them to run their own businesses.

Licensed taxi drivers meanwhile often have to undergo hundreds of hours of training, and they accuse Uber of endangering their jobs by using cheaper drivers who rely only on a GPS to get around. – Rappler.com

MANILA, Philippines – The transformation of Metro Manila’s second airport, Clark International Airport, into a major Asian gateway has started with work finally beginning on a new terminal.

The Clark International Airport Expansion project formally kicked off with a groundbreaking and capsule-laying ceremony at the airport grounds in Pampanga on Wednesday, December 20. It was led by the Department of Transportation (DOTr), Bases Conversion Development Authority (BCDA), Clark International Airport Corporation (CIAC), and the Clark Development Corporation (CDC).

Spanning around 100,000 square meters, including landside and airside facilities, the new terminal is designed to accommodate an additional 8 million passengers every year and is expected to be completed by 2020.

It is expected to decongest the Ninoy Aquino International Airport terminals, as well as spread development in the peripheries.

“It’s quite sad that it took this long. The last 6 or 7 years, things didn’t move. But we forget about the past. That’s water under the bridge, because now we move forward,” BCDA president and CEO Vince Dizon said in a statement on the day of the groundbreaking.

Part of a wider plan for Central Luzon

Transportation Secretary Arthur Tugade noted that the expansion of the Clark airport is part of a bigger development plan for North and Central Luzon with the new terminal expected to complement other infrastructure projects in the area.

The most prominent of these are the Manila-Clark Railway, Subic-Clark Cargo Railway, and the New Clark City.

“We will connect [the new terminal ] to the Manila-Clark Railway. Not later than January 6, 2018, we will mobilize the construction of the first segment from Tutuban to Malolos, and hopefully we will complete the entire line to Clark before the end of President Duterte’s term,” Tugade said.

The construction of the new terminal is the first hybrid project under the "Build, Build, Build" Infrastructure Program of the Duterte administration.

Under the hybrid model, the government will build the infrastructure using its own funds to ensure fast delivery of the project while auctioning off operations and maintenance to the private sector.

The group of publicly-traded Megawide Construction Corporation and Bangalore-based GMR Infrastructure Limited won the rights to the project with the “lowest calculated bid” of P9.36 billion, lower than government's originally projected cost of P12.55 billion.

The BCDA is expected to bid out the operations and maintenance of the Clark International Airport to the private sector next year. – Rappler.com

Please refresh this page for updates.

MANILA, Philippines – Some bank branches will have extended hours for the 2017 holiday season, though they will be closed on Christmas and New Year's Day.

Bank of the Philippine Islands (BPI)

119 BPI and 49 BPI Family Savings Bank (BFSB) branches will have extended banking hours up to 6 pm through to January 3.

• Get the full list of BPI branches here and BFSB branches here.

In addition to this, 96 BPI and 17 BFSB branches will be open on December 23.

• Get the full list of BPI branches here and BFSB branches here.

Security Bank

All Security Bank branches will be closed on December 25, December 31, and January 1. But automated teller machines (ATMs) and point-of-sale machines as well as internet banking will be available on those days.

All branches will be open from December 26 to 29.

Selected branches will be open on December 24 and December 30:

December 24

• NAIA – 11 am to 7 pm
• NAIA Terminal 3 – 11 am to 7 pm

December 30

• Baguio – 9 am to 1 pm
• Bukidnon-Valencia – 9 am to 3 pm
• Butuan – 10 am to 3 pm
• Cabanatuan-Maharlika – 9 am to 1 pm
• Cagayan de Oro-Osmeña – 9 am to 3 pm
• Cagayan de Oro-Georgetown Cybermall – 9 am to 3 pm
• Cebu-Danao – 9 am to 12:30 pm
• Cebu-Mactan – 10 am to 3 pm
• Dipolog – 9 am to 3 pm
• Iligan – 9 am to 3 pm
• Iloilo-Ledesma – 10 am to 2 pm
• Koronadal – 9 am to 12 noon
• Medical City – 9 am to 1 pm
• NAIA – 11 am to 7 pm
• NAIA Terminal 3 – 11 am to 7 pm
• Ozamiz – 9 am to 3 pm
• San Francisco-Agusan del Sur – 9 am to 3 pm
• Silver City – 9 am to 1 pm
• Sta Elena – 9 am to 12 noon
• Surigao – 9 am to 3 pm
• Tagum – 9 am to 12 noon
• Tuguegarao – 12 noon to 4 pm
• Zamboanga – 9 am to 3 pm
• Zamboanga-Canelar – 9 am to 3 pm

– Rappler.com

MANILA, Philippines — The country’s biggest conglomerates have teamed up to create a super consortium to propose an upgrade to the Ninoy Aquino International Airport (NAIA).

Aboitiz Infra Capital Incorporated, AC Infrastructure Holdings Corporation, Alliance Global Group Incorporated, Filinvest Development Corporation, JG Summit Holdings Incorporated, Metro Pacific Investments Corporation, and Asia's Emerging Dragon Corporation (AEDC) have agreed to jointly rehabilitate, operate, and maintain NAIA, they said in a statement on Thursday, December 21.

They first announced the idea of joining forces and submitting an unsolicited proposal to the Department of Transportation (DOTR) in early December. 

The unsolicited proposal,” the group explained, ”is intended to help accelerate the government’s “Build Build Build” program. Augmenting NAIA’s capacity is the quickest way to address airport congestion while other airports are being developed outside Metro Manila”.

Strategic gateway

The conglomerates involved said they believe NAIA would continue to be a strategic gateway for the country and a key hub of airline operations for many more years.

“Given proper upgrades and strategic improvements, NAIA can easily accommodate an additional 11 million passengers annually from the current 39.5 million passengers, and can increase its hourly aircraft movements (landing and take-off) from 40 movements per hour to 48 movements per hour,” they said.

The consortium said it “will work with foreign technical partners with proven world class track records and experiences in airport operations to improve, upgrade, and enhance the operational efficiencies of NAIA covering both landside and airside facilities.”

The consortium also noted that numerous foreign and local experts have highlighted the advantage of keeping an airport within city limits for megacities, while also recommending a second airport outside city limits to complement it.

Numerous megacities around the world benefit from this two-airport setup, one within city and one outside. They include London (Heathrow and Gatwick) and Tokyo (Narita and Haneda).

Metro Manila has a similar setup with its second airport Clark International Airport in Pampanga, which has just started on its own expansion.

Two notable absences in the super consortium are the Henry Sy-led SM Group, the country's largest conglomerate, and San Miguel Corporation. They have both submitted proposals to build new airports. SM is proposing one in Cavite, while San Miguel is eyeing one in Bulacan. – Chris Schnabel/Rappler.com

MANILA, Philippines – The Office of the Ombudsman has suspended 4 commissioners of the Energy Regulatory Commission (ERC) due to what it alleges to be anomalous transactions involving the Manila Electric Company (Meralco).

In a decision released on December 21, the Ombudsman ordered the suspension of commissioners Alfredo Non, Josefina Patricia Magpale-Asirit, Geronimo Sta. Ana, and Gloria Victoria Yap-Taruc for one year without pay due to “conduct prejudicial to the best interest of the service aggravated by simple misconduct and neglect of duty.”

Former EC chairman Jose Vicente Salazar was also found guilty but was ordered to pay a fine equivalent to 6 months’ salary as he was suspended in August and then removed from office in October of this year.

The ERC officials also face graft and corruption charges over alleged extravagant travels.

Delaying the deadline

The case against the ERC, brought about by the Alyansa Para sa Bagong Pilipinas Incorporated, stemmed from its alleged delay of the deadline of the validity of the Competitive Selection Process (CSP) in securing power supply agreements (PSAs).

The CSP policy was aimed at lowering electricity rates for consumers by allowing for competitive bidding at the power generation stage.

The ERC extended the date of implementation of the CSP from November 6, 2015 to April 30, 2016 “without valid or justifiable reason”, according to the complainants.

The ERC defended its decision earlier this year, saying it was to address concerns of distribution utilities and power generation companies over existing PSAs.

The complainants however maintained that the extension “was a clear ploy to allow 7 of  Meralco’s affiliates to bag lucrative PSAs without having to undergo the CSP."

These contracts totaled 3,551 megawatts or at least  80% of Meralco’s power requirement during the period.

The complainants also noted that the PSAs would add around P200 billion in additional financial burden to Meralco customers over a period of 20 years.

In its decision, the Ombudsman said the ERC commissioners are liable for simple misconduct because they violated the CSP policy and its related guidelines, noting that “the PSAs allowed to be filed before the ERC despite not undergoing CSP are yet to be approved, and that respondents’ violation of the rules were inadequately shown to be motivated by corruption.”

The Ombudsman also noted that the commissioners “failed to do their duty to encourage market development, ensure customer choice, penalize abuse of market power in the restructured electricity industry, and enforce the implementing rules and regulations of Electric Power Industry Reform Act.”

Reacting to the order, Party list Sanlakas pointed out that the Ombudsman’s order validates its concerns that energy, and especially coal giants, are given favorable treatment meant to favor corporate interest over public good.

 “The Ombudsman suspension order bolsters the truth that only collusion between the government and corporations could have allowed for such anti-consumer and anti-environment agreements to prevail,” said Sanlakas Secretary-General Aaron Pedrosa in a statement.

“This suspension order should serve as a warning to the ERC to seriously review the petition against the deals, which was filed in intervention by concerned community leaders and peoples’ groups only to be junked by ERC chambers,” he added.—Rappler.com

Please refresh this page for updates.

MANILA, Philippines – A number of domestic flights were canceled on Thursday, December 21, and Friday, December 22, due to Tropical Storm Vinta (Tembin), which is affecting parts of Mindanao and the Visayas.

Philippine Airlines (PAL)

Thursday, December 21

• PR 2397-2398 Cebu-Surigao-Cebu 
• PR 2929-2930 Cebu-Camiguin-Cebu 
• PR 2893-2894 Cebu-Ozamiz-Cebu 
• PR 2295-2296 Cebu-Cagayan-Cebu 
• PR 2374-2375 Cebu-Siargao-Cebu 
• PR 2557-2558 Manila-Dipolog-Manila 
• PR 2967-2968 Manila-Butuan-Manila 
• PR 2889-2890 Manila-Ozamiz-Manila 
• PR 2959-2960 Manila-Cotabato-Manila 
• PR 2519-2520 Manila-Cagayan de Oro-Manila

PAL said affected passengers may avail of any of the following options: 

• Rebook within 30 days from original flight date, with rebooking/penalty charges waived.
• Refund within 30 days from original flight date, with refund charges waived.

Customers can visit the PAL website, call PAL hotline 855-8888, or visit the nearest PAL ticketing office or partner travel agent.

Cebu Pacific

Friday, December 22

Cebu-Siargao-Cebu

• DG 6851 / DG 6852
• DG 6853 / DG 6854
• DG 6885 / DG 6896
• DG 6901 / DG 6902

Cebu-Tandag-Cebu

• DG 6951 / DG 6952

Cebu-Butuan-Cebu

• DG 6925 / DG 6926

Manila-Butuan-Manila

• 5J 791 / 5J 792
• 5J 785 / 5J 786
• 5J 793 / 5J 794

Cebu-Camiguin-Cebu

• DG 6690 / DG 6691

Davao-Dumaguete-Davao

• DG 6532 / DG 6533

Cagayan de Oro-Dumaguete-Cagayan de Oro

• DG 6537
• DG 6536

Cagayan de Oro-Tagbilaran-Cagayan de Oro

• DG 6785
• DG 6784

Manila-Cagayan de Oro-Manila

• 5J 397 / 5J 398
• 5J 383 / 5J 384
• 5J 379 / 5J 380
• 5J 391 / 5J 392
• 5J 385 / 5J 386
• 5J 389 / 5J 390

Iloilo-Cagayan de Oro-Iloilo

• 5J 695 / 5J 696

Cebu-Cagayan de Oro-Cebu

• DG 6715 / DG 6718
• DG 6719 / DG 6720
• DG 6717 / DG 6722
• DG 6724

Davao-Cagayan de Oro

• DG 6738

Cagayan de Oro-Caticlan-Cagayan de Oro

• DG 6302 / DG 6303

Cebu Pacific said it will mount additional flights late Friday afternoon, December 22, to Saturday, December 23, to accommodate affected passengers. "They will be notified regarding their new flight schedules," added the airline.

Cebu Pacific also said it is giving passengers traveling on any Cebu Pacific or Cebgo flight to and from the Visayas and Mindanao from December 21 to 24 the following options:

• Rebook within 30 days without penalties. If beyond 30 days, fare difference will be charged.
• Reroute to alternate station within 30 days without penalties. If beyond 30 days, fare difference will be charged.
• Travel fund without penalties
• Full refund

Customers are advised to contact the Cebu Pacific hotline at 7020-888 or send a message via Facebook or Twitter.

Cebu Pacific also advised customers who booked through a travel agent or any other 3rd party to provide the airline with their contact details so they can be directly informed of any flight changes.

Customers can also check the status of their flights via Cebu Pacific's Flight Status tab. – Rappler.com

CEBU CITY, Philippines – Transport network company (TNC) Grab Philippines said it wants to support the government's public utility vehicle (PUV) modernization program by investing in public transportation in 2018.

Leo Gonzales, public affairs manager of Grab Philippines, said the company is open to investing heavily in PUV modernization in various cities, including those outside of Metro Manila.

"It can be in the form of modernized jeepneys, it can be buses, almost anything, for as long as we are able to participate in this important part of developing our transportation," Gonzales told reporters in Cebu on Thursday, December 21.

He said Grab has already approached the Department of Transportation (DOTr) and the Land Transportation Franchising and Regulatory Board (LTFRB) to raise the idea.

Gonzales added that Grab's investment would not be limited to Metro Manila but would also include other areas where it operates, such as Cebu, Davao, Cagayan de Oro, Bacolod, Iloilo, Pampanga, and Baguio.

"We have not yet gone that far into how exactly we will go about it but we want to come in as a company that will probably be able to work with local operators," he said.

Financial details of Grab's investment plan in the PUV modernization program have not been determined yet as Gonzales said the first step would be to study existing routes and determine new routes that would be created.

The company has already partnered with transport researchers to assess existing routes and possible routes, starting with Bacolod, Iloilo, and Pampanga.

In Cebu, Grab is open to talking with the City Integrated Transport Cooperative (Citrasco), the biggest transport group in the province, to map out a possible partnership or investment.

"We are open to talking to anyone. Now is the time for transportation operators and movers to really work together," Gonzales said.

Grab, he added, envisions a single network that would offer all modes of transportation – jeepney, bus, taxi, motorcycle, car, tricycle, and even bicycle.

"If we comply with all the requirements, I am sure that the government will consider us and any other eligible player to take part in the PUV modernization program," Gonzales said.

According to the Land Transportation Office (LTO) in Central Visayas, Cebu now has a total of 574,819 registered vehicles and motorcycles to date.

This means that from January to December this year, 167,889 vehicles and motorcycles were added to the existing 406,930 registered vehicles, said LTO Central Visayas Director Alita Pulga.

Cebuanos have been complaining on social media about Metro Cebu's worsening traffic.

By the end of 2018, Pulga said Cebu may have 800,000 registered vehicles. – Rappler.com

MANILA, Philippines – More than half of Filipinos enjoy haggling, and get an average discount of 21% when they do so, a new survey showed.

The survey, called "A Handle on Haggling," found that 56% of Filipinos enjoy negotiating for a lower price. 

The survey also showed it is easier for women than men to haggle in the Philippines, and that Filipinos most likely bargain for clothing.

"A Handle on Haggling" placed the Philippines 3rd overall in terms of percentage of respondents who enjoy haggling, and 4th overall in terms of average discount received after bargaining.

The study was released by Singapore-based discount consolidator Picodi on Thursday, December 21, and covered more than 1,700 respondents across 44 countries.

Girl Power

Picodi explained that in the Philippines, people "acknowledged that women tended to have a leg up when it came to negotiating."

And this has more to do with skill than just a pretty face.

The firm noted that in the Philippines and India, people were less likely to submit to the power of appearance as compared to the US or Canada.

"Research has shown women in Asia are typically more confident in their financial savvy than their spouses and learn to manage money at a younger age compared to other cultures," Picodi said.

"As evidenced by their long history of powerful female political figures, some experts suggest Asian women are also more likely to be seen as equal partners when it comes to business and finance," it added.

Still, it's not all bad for men. Picodi noted that "of the 1,700 people around the world surveyed, men enjoyed the process of negotiating for a better price more than women, though they might not be as skilled in the art of the deal."

It also reminded people that regardless of nationality, sex, or attractiveness, there are specific skills you can still practice – and perfect – when it comes to negotiating.

These include being personable, talking up the quality of the product, and never taking the first offer.

"You may not always strike the deal you want, but you’ll build your confidence – and future success – in the process," the firm said.

The full results of the survey can be viewed here. – Rappler.com

MANILA, Philippines (UPDATED) – The Bangko Sentral ng Pilipinas (BSP) announced it would still accept demonitized peso bills and exchange them with new ones on Tuesday, December 26. 

The 3-decade-old New Design Series (NDS) banknotes were retired by the central bank last June 30. That deadline already represented a lengthy extension. They banknotes were originally scheduled to lose their monetary value end-December 2016.

A day after Christmas, however, the BSP's cash departments in Manila and Quezon City, as well as its regional offices and branches will be open "to accept exclusively from the general public the exchange of demonetized NDS banknotes," said BSP Governor Nestor Espenilla Jr.

Here is what the old peso bills in the NDS look like:

They will be replaced by banknotes in the "New Generation Series."

The bank will be open only from 8:30 am to 12 pm. 

A maximum amount of P100,000 per transaction will be allowed. – Rappler.com

MANILA, Philippines – Light Rail Manila Corporation (LRMC), operator of LRT1, said on Friday, December 22, that ticket vending machines are expected to be compatible with the new P5 coins by March 2018.

LRMC clarified that machines have yet to be reconfigured. The corporation then advised the public to double check their P5 coins to avoid inconveniences during the holiday rush.

In the meantime, passengers may opt to purchase single journey tickets and stored value cards (SVC), or top up SVCs, through station tellers. They may also swap their new coins for old ones through the station tellers.

AF Payments Incorporated, which supplies the ticket machines and is the concessionaire of Automated Fare Collection System (AFCS), said it had started recalibrating the firmware of the machines to process the new coins.

The recalibration of the machine's firmware will take place in Germany and is expected to take about 3 months before it can be deployed to machines.

The Bangko Sentral ng Pilipinas (BSP) released a new P5 coin last December 1 to honor Philippine hero Andres Bonifacio. The new coin commemorated Bonifacio's 154th birth anniversary celebrated last, November 30, as well as his 120th death anniversary last May 10. – Rappler.com

MANILA, Philippines—President Rodrigo Duterte has vetoed some parts of the first package of the Tax Reform for Acceleration and Inclusion (Train) law, Malacañang Palace informed Congress on Friday, December 22. 

The tax reform measures, which the President signed into law last Tuesday, will take effect on January 1, 2018.

The line items from the bill the President vetoed deal with:

1. Reduced income tax rate of employees of Regional Headquarters (RHQB), Regional Operating Headquarters, Offshore Banking Units, and Petroleum Service Contractors and Subcontractors

Specifically, the veto was on the special 15% tax rate on gross income of employees under the category.

The President said that, “given the significant reduction in the personal income tax, the employees of these firms should follow the regular rates applicable to other taxpayers.”

2. Zero rating of sales of goods and services to separate customs territory and tourism enterprise zones

The veto deals with areas under the Tourism Infrastructure Enterprise Zone Authority (Tieza).

The President said the provisions go against the principle of limiting the VAT zero rating to direct exporters.

He also noted, “At any rate the Tieza law, which is still in effect for two years, can still be used to avail of the above-mentioned incentives."

3. Exemption  from percentage tax of gross sales/receipts not exceeding P500,000

The veto deals specifically with all self-employed professionals with the above income.

The President said that "the exemption will result in unnecessary erosion of revenues and will lead to abuse and leakages."

He also noted that the taxpayers covered by this provision are already exempted from VAT, thus the lower 3% on gross sales or receipts is considered as their share in contributing to the revenue base of the country."

4. Exemption of various petroleum products from excise tax when used as input, feedstock, or as raw material in the manufacturing of petrochemical products, or in the refining of petroleum products, or as replacement fuel for natural gas fired combined cycle power plants

The President said this “ provision runs the risk of being too general, covering all types of petroleum products, which may be subject to abuse [by] taxpayers and thus lead to massive revenue erosion.”

5. Earmarking of incremental tobacco taxes

The President noted that this revision effectively amends the Sin Tax Law, which provides for funds for universal health care and will effectively diminish the healthcare sectors revenue base.

Boosting revenue

“With the vetoes we estimate that the revenue from Train will go up to close to P90 billion,” said Finance Secretary Carlos Dominguez following the 171^st meeting of the Development Budget Coordination Committee (DBCC) on Friday.

“But that P90 billion is only for Part A of Train’s initial package, with Part B expected to raise another P38 billion to P40 billion, and we expect that to be passed by Congress by the first quarter of 2018,” he said.

The finance secretary also said the 2nd package of tax reforms, which will deal with corporate tax reforms, will be submitted to Congress by January 15.

The vetoes, he added, will not affect the date of effectivity of the new tax law, which is still set for January 1, 2018.

The initial package of the Train Law was originally estimated to raise P167 billion to be used for infrastructure build-up, and the lower revenue means that the government will borrow more for 2018.

Dominguez noted, however, that the additional borrowing would not be a burden given stellar economic growth. 

“What you look at is borrowing in relation to GDP growth. Our expectation is that the percentage of borrowing will go down as a percentage of GDP as we go forward so we’re very safe,” he explained.

The DBCC retained its 3% deficit ceiling, noting that the financing mix will continue to favor domestic barrowing over the medium term. For 2018, however, the government is expected to borrow 74%  from local sources with 26% coming from foreign sources.

Government debt, or debt to GDP ratio, meanwhile is projected to continue its downward trajectory to 37.9% in 2022 from 42.0% in 2017.

Updates to medium-term plan

Despite the lower than expected revenue from Train, the DBCC did not make any major changes to its medium-term economic plan.

The DBCC-approved revenue program for 2018 is P2.789 trillion or 16% of GDP rising to P4.388 trillion or 17.3% of GDP in 2022, while the DBCC-approved spending target is P3.313  billion for 2017 rising to P5.149 trillion in 2022.

The government’s economic managers also retained GDP target growth of between 7-8% through 2022. – Rappler.com

MANILA, Philippines – The House of Representatives has adopted a resolution urging President Rodrigo Duterte to grant travel tax exemptions to passengers traveling from Mindanao and Palawan to any destination within BIMP-EAGA.

BIMP-EAGA refers to the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area. This is a subregional economic cooperation initiative by Brunei Darussalam, Indonesia, Malaysia, and the Philippines.

House Resolution 1463 seeks to grant the travel tax exemption "to help enhance trade, tourism, and investments in the said area," a December 22 statement from the House of Representatives said.

The House resolution noted that revenue losses from the proposed travel tax exemptions can be compensated by "the projected economic and social gains to Mindanao and Palawan, and the country as a whole."

According to members of the Lower House, the collection of travel tax "runs counter to the sub-regional objective of promoting the connectivity and accessibility of EAGA focus areas as well as facilitating freer movement of people, goods, and services."

The House resolution said providing necessary incentives, such as travel tax exemptions, will help the government capture the interest of travel service providers to invest in Philippines-EAGA routes.

Sponsors of the adopted House resolution include House committee on tourism chairperson Lucy Gomez, as well as Representatives Mercedes Cagas, Gil Acosta, Frederick Siao, Glona Labadlabad, Maria Lucille Nava, and Makmod Mending Jr.

In 1994 and 1995, former president Fidel Ramos issued memorandum orders granting travel tax exemptions to passengers traveling from Mindanao and Palawan to any destination within the BIMP-EAGA. – Rappler.com

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) announced on Friday, December 22, that it gave state-run Land Bank of the Philippines (Landbank) the green light to acquire the Philippine Postal Savings Bank (Postbank). The acquisition will pave the way for the opening of the Overseas Filipino (OF) Bank expected as early as February 2018.

According to BSP Deputy Governor Chuchi Fonacier, the central bank's Monetary Board approved the acquisition in early December.

"It has already been approved actually. It was approved two weeks ago," she added.

Fonacier also said the application to set up the OF Bank has already been filed and is now being evaluated by the central bank, prior to approval of the Monetary Board.

"I think they are targeting to start operations by February," BSP Governor Nestor Espenilla Jr said.

PCC approval

Fonacier added that the transaction would still have to be approved by the Philippine Competition Commission (PCC). (READ: What you need to know about the Philippine Competition Act)

According to PCC Chairman Arsenio Balisacan, documents involving Landbank's acquisition of Postbank have been submitted and are now being reviewed.

"Now we have the process in place, we're expecting this next year. The documents have just been submitted so we can review. Hopefully the process can move quickly," he told reporters.

Under the first phase, the PCC has a period of 30 days to act on the application. 

The PCC is mandated to review transactions involving mergers and acquisitions worth at least P1 billion. A decision should be issued within 90 days.

"Our rules require us to make a decision in a maximum of 90 days," Balisacan said.

Last September 28, President Rodrigo Duterte issued Executive Order No. 44, authorizing Landbank's acquisition of Postbank to pave the way for the establishment of a financial institution dedicated to Filipino workers abroad.

Landbank president Alex Buenaventura earlier said they were eyeing the launch of a pilot OF Bank branch in Dubai on January 2, 2018. Another branch in Bahrain is expected to open in April 2018.

A total of around 25 branches will be opened in the United States, Japan, Middle East, and Hong Kong, among others.

The OF Bank was first announced by Finance Secretary Carlos Dominguez III in December 2016. He said it would be partly owned by OFWs. – Rappler.com

MANILA, Philippines – The Department of Agriculture (DA) said damage and losses to agriculture sector caused by Tropical Storm Urduja (Kai-Tak) had reached P1 billion as of 5 pm Friday, December 22.

A memorandum sent by the DA to reporters on Saturday, December 23, gave an update on Urduja affecting 38,466 farmers and a total of 38,973 hectares of agriculture areas in Bicol, Central Visayas, Eastern Visayas, and Caraga.

The total volume of production loss was estimated at 23,829 metric tons.

Christopher Morales, chief of the DA Field Programs Operational Planning Division, said the affected commodities are rice, corn, high value crops, livestock or poultry, and agri-fishery facilities.

Rice contributed the largest share of losses at P532.70 million (52.84%), covering 34,371 hectares – equivalent to 11.78% of the total standing crop of 291,746 hectares. The volume of production loss for rice was estimated at 6,402 metric tons.

"Most affected rice crops are at sowing, seedling, newly transplanted and vegetative stages, which majority were reported as totally damaged," Morales said in the memorandum.

Below is a summary of damage and losses per commodity as of 5 pm Friday:

Morales also reported that the total damage to agri-fishery facilities amounted to P38.49 million. This included damage to research and experiment stations (P38.33 million) and fisheries facilities in DA-Eastern Visayas (P157,000).

Urduja weakened into a tropical depression before leaving the Philippine Area of Responsibility  on Tuesday morning, December 19. It made landfall in the country 6 times.

As for Tropical Storm Vinta (Tembin), Morales on Friday said in a separate memorandum that "there are no damage brought about by [Vinta] to the agri-fisheries sector." – Rappler.com

MANILA, Philippines  – The Department of Transportation (DOTr) has made it clear that the terminated MRT-3 maintenance service provider, Busan Universal Rail Incorporated (BURI), and its affiliates can no longer participate in any other government projects.

“BURI and its joint venture members, which include Busan Transportation Corporation (Busan) and Edison Development and Construction (Edison), are disqualified from participating in the bidding of government projects,” the DOTR said in a statement on Tuesday, December 26.

The agency added that the move is a consequence of the termination last November 6 of BURI's contract for the maintenance of the Metro Rail Transit 3 (MRT-3) due to poor performance and breach of contractual obligations.

Despite the November termination, Busan and Edison had recently submitted bids for other projects: the Systematic Rail Replacement Project for MRT-3, LRTA's Maintenance Contract for LRT-2, and LRTA's Restoration of Four Train Sets Project also for LRT-2.

The DOTr clarified that “Busan and Edison’s submission of a bid for a project does not mean that they are qualified.”

“While Busan and Edison may have submitted the legal, technical, and financial documents required under R.A. 9184 (which is evaluated based on a "presence" or "absence" criteria), Busan and Edison have not been declared qualified for the projects, which is done in the post-qualification stage of a procurement process,” the DOTr explained.

The DOTr added that all 3 projects are currently in post-qualification stage, and Busan and Edison's disqualification from all government projects, pursuant to the Uniform Guidelines for Blacklisting of Contractors, will disqualify them from the 3 projects.

The DOTr and BURI have been involved in a year-long squabble that has reached the courtroom level following a number of high-profile "glitches" ailing the MRT-3 line.

Beyond terminating BURI’s P3.8 billion MRT-3 contract, the DOTr has also filed a graft case against the firm as well as then transportation secretary Joseph Emilio Abaya over alleged anomalies involving the contract in the first place. Prior to that, BURI sued the DOTr over non-payment of fees.

The DOTr aso announced in November that Sumitomo Corporation, the original maintenance provider of MRT-3, is being closely considered to reprise its role. – Rappler.com

MANILA, Philippines – The Department of Energy (DOE) has implemented a prize freeze on kerosene and household liquified petroleum gas (LPG) following the declaration of a state of calamity in a number of areas in the Visayas and Mindanao.

In an advisory sent on December 26, the DOE reminded the public that:

1. The price freeze holds for 15 days, commencing a day after the declaration
2. “Household LPG” refers to 11 kilograms and below of LPG in cylinders
3. Price movements for kerosene are implemented every Tuesday of the week
4. Price movements for LPG are implemented at the beginning of each month

It also noted that it is coordinating with oil industry players, through the Oil Industry Management Bureau and its Field Offices, to monitor the price freeze on these basic energy products being sold in calamity-affected areas.

The agency also appealed to the public to be vigilant and to report any violation on the price freeze implementation to info@doe.gov.ph or to Consumer Welfare and Promotion Office at telephone number 479-2900 local: 329.

A state of calamity was declared in Tacloban City on December 15, following the effects of Tropical Storm Urduja (Kai-Tak).

It was joined by Lanao del Norte and Lanao del Sur which both declared a state of calamity last week following the devastation wrought by Tropical Storm Vinta (Tembin).

Davao City has also declared a state of calamity as it, too, deals with the aftermath of Typhoon Vinta and a mall fire which has left over 30 people dead. – Rapper.com 

MANILA, Philippines – Stronger collections kept pace with increased spending last November, based on data released by the Bureau of Treasury (BTr) on Tuesday, December 26.

The Philippine government hit an P8.6-billion fiscal deficit for the month, down from P19.1 billion a year ago, as revenue collection grew 16% against the 10% increase in public spending.

Despite November's contraction, the year-to-date deficit is still wider by 4% to P243.5 billion compared to the P235.2 billion recorded last year.

Collections up

Total government revenue for November was up 16% to P243.5 billion, resulting in a year-to-date collection of P2.25 trillion which in turn is 11% better than the January to November period last year.

The Bureau of Internal Revenue (BIR) raised P179.4 billion for November, up 14% over last year's level.

Total BIR collections as of end-November hit P1.621 trillion, up 12% from the same period in 2016. The BTr noted that amount would be P1.628 trillion if tax refunds were included.

The Bureau of Customs (BOC), meanwhile, saw collections rise by 15% to P46.4 billion. Year-to-date, BOC revenue has grown 14% over the 2016 level to P413.1 billion.

Total BOC collections for the year amounted to P415.7 billion after the tax refund for January to November was taken into account.

The BTr, for its part, raised P4.3 billion in November, up 2% year-on-year on higher collections of foreign exchange risk cover and guarantee fees which offset the decline in Bond Sinking Fund (BSF) and Securities Stabilization Fund (SSF) income as well as the government share in airport terminal fees.

From January to November, BTr income totaled P86.5 billion, down by 9% from the same period last year.

Non-tax revenue also saw a 51% increase to P11 billion for the month on the back of higher remittances of fees and charges from various offices. This put the year-to-date collection at P109.5 billion, up 2% over the same period last year.

Increased spending

Government spending, meanwhile, grew by 10% to P252.1 billion for the month. So far, this year, total government expenditures are also up by 10% to P2.493.5 trillion.

Interest payments for November increased by 5% or P1 billion year-on-year to total P20.6 billion, owing to coupon payments which were P1.3 billion higher than the 2016 level.

Interest payments totaled P290 billion for January to November which is 2% or P4.6 billion higher compared to the same period last year.

The BTr noted that total interest payments for the year currently account for 12% of expenditures and 13% of revenues, down from 13% and 14% in 2016, respectively.

Excluding interest payments, the government hit a primary surplus of P12 billion, P11.6 billion better compared to the P406-million surplus in November 2016.

But so far, this year, the primary surplus of P46.5 billion is down from the P50.2 billion recorded a year ago.

The government's economic managers retained the deficit ceiling of 3% of gross domestic product (GDP) for 2018 with the first tax reform package expected to generate around P90 billion in additional government revenue. – Rappler.com