RICARDO, CATHLYN-JOI M

BSA-1
Oil and gas deal with China to 'proceed on the basis of PH law,' says Locsin
ABS-CBN News (Nov 26 2018)

MANILA -- Discussions on oil and gas cooperation between the Manila and Beijing should
"proceed on the basis of Philippine law" including an outcome ratio, Foreign Affairs Secretary
Teodoro Locsin Jr. said Monday.
there is "no outcome sharing" prescribed in the memorandum of understanding, said Locsin,
who earlier described it as an "agreement to agree." But a presidential decree mandates 60-40 in
favor of the Philippines, Locsin said. The Philippine constitution also caps foreign ownership in
certain businesses at 40 percent. "When the working group gets into it, they will understand that
they must operate on the Philippine side, within Philippine law—60-40. On the Chinese side,
they will also understand that Philippine side needs to proceed on the basis of Philippine law," he
said. China can "walk away" from negotiations if it insists on equal sharing of the profit because
that is "not allowed by our domestic law," Locsin told ANC's Headstart.

PH, China allay fears over falling into so-called debt trap
ABS-CBN News (Nov 26 2018)

Beijing and Manila are both dismissing fears over the danger of falling into China's so-called
debt trap amid its assistance in the country's infrastructure program. - Business Nightly, ANC,
November 26, 2018

Franchise dispute raises concerns over electricity distribution in Iloilo

ABS-CBN News (Nov 27 2018)

The Philippine Senate approved on third and final reading the franchise application of MORE
electric and power corporation. This, as complaints against its rival, the Panay Electric
Company. Also continue to hurt its franchise renewal bid. - Business Nightly, ANC, November
26, 2018
  Credit info system vital to growth of lending in PH says stakeholder
ANC Market Edge (Nov 27, 2018)

The head of the Philippines’ only central credit registry, Credit Information Corporation, said
Wednesay that having credit information systems was vital to economic growth. 
“If you want to see an explosion of credit, if you want to support the economic growth of the
Philippines, definitely one of our priorities is to make [sure] the data being submitted by entities
today are accurate and complete," said Jaime Casto Garchitorena, president of CIC. Garchitorena
added that institutions should also upgrade systems meant to safeguard data privacy, not just by
investing in technology but by taking a closer look at the people safeguarding this data.

PH finance chief says inflation to taper off towards end of 2018

ABS-CBN News (Nov 28 2018)

Philippine Finance chief Carlos Dominguez expects the country's inflation to taper off towards
the end of 2018. Dominguez's positive outlook on the economy also extends to government
spending and dealings with China. - Business Nightly, ANC, November 28, 2018

PH shares fail to hold above 7,400 despite net foreign buying

ABS-CBN News (Nov 28 2018)

Philippine shares give in to profit taking, failing to hold the 7,400 support level. One of the
country's biggest developer, however, bucks the downtrend, exceeding its full year target in new
contracts. - Business Nightly, ANC, November 28, 2018

Tobacco tax hike to help fund health care law: Sen. Ejercito
ABS-CBN News (Nov 29 2018)

MANILA -- Higher excise taxes on tobacco products will help fund the Universal Health Care
Law, a senator who sought to raise the levy said Thursday. Senator JV Ejercito said he sought to
raise the tobacco tax to P90 per pack, higher than the P60 proposed by Sen. Manny Pacquiao and
P45 in the House of Representatives. The Senate and House approved a bicameral committee
report on the Universal Health Care Law, paving the way for President Rodrigo Duterte's
signing. “Right now I have already filed an increase in sin taxes, particularly in tobacco tax
because in the Asian market, we have still the lowest, if not the lowest, price of tobacco products
per pack," said Ejercito, who chairs the Senate Committee on Health. Aside from increasing the
coverage of the national health insurance to 100 percent, the proposed Universal Health Care
Law will also provide annual checkups and laboratory tests, said Ejercito, who is seeking
reelection in 2019. “People go to the hospital when they are already very sick. We want to
strengthen the preventive side of the health care," he said.

Consumer group urges Duterte to scrap fuel excise tax

ABS-CBN News (Nov 30 2018)

MANILA - A commuter group has appealed to President Rodrigo Duterte to scrap the
implementation of excise taxes on petroleum products under the Tax Reform for Acceleration
and Inclusion (TRAIN) law. With the existing 12-percent VAT and the decrease in world crude
prices, there is "no need" to implement the second and third tranches of the excise tax on fuel,
United Filipino Consumers and Commuters President Rj Javellana said. “Ang aming panawagan
ay malinaw po (Our plea is clear): no more excise tax on petroleum products. It’s Christmas
time, it’s up to the President," Javellana said in an interview on ANC's Business Nightly
Thursday.
"Luwagan naman niya ang sinturon ng publiko, pamasko na lang niya sa atin itong darating na
mga buwan at 'wag na ituloy ang excise tax na ito," he added. (Help the public loosen their belts
as his Christmas gift for us and do not push through with this excise tax.)
The administration's economic managers on Thursday said they would recommend the
implementation of the second round of fuel excise taxes after world oil prices fell from $80 per
barrel in October. The TRAIN law had scheduled excise tax increases every year for 3 years
starting Jan. 1, 2018.

Consumers fear repeat of runaway inflation amid fuel excise tax hike
ABS-CBN News (Dec 01 2018)

The Philippine economic managers' move to recommend pushing through the second tranche of
fuel excise taxes next year are leaving consumers wary that the possible tax hike might lead to
faster inflation. - Business Nightly, ANC, November 30, 2018

Reenacted budget 'won't have impact' on big ticket infra projects - Diokno
ABS-CBN News (Dec 02 2018)

MANILA – Big ticket infrastructure projects will not be affected in case of a reenacted budget
for 2019 because of a "multi-year obligation authority," Budget Secretary Benjamin Diokno said
Friday. Several major projects are set to break ground next month, with construction scheduled
over the coming years. The ground breaking for the Mega Manila Subway project is set on Dec.
19, simultaneous with the opening of the NLEX Harbor Link Project, which could cut the length
of bus and truck trips from Roxas Boulevard to NLEX by at least an hour, Diokno said.
Still, Diokno warned that a reenacted budget would affect small and local projects.
The Senate had earlier said the 2019 budget, which the House of Representatives approved on
Nov. 20, may not be passed at the chamber before Congress goes on Christmas break in mid-
December. In a schedule released by Senate Majority Leader Juan Miguel Zubiri, the budget may
be signed early February at the soonest.
Fuel price decline for 8th consecutive week
(Dec 03 2018)

As fuel prices roll back for another week philippine transport regulators move to slash minimum
jeepney face by 1 peso. This did not sit well with transport groups who are demanding an
explanation from the government.

SC lets BIR impose higher taxes on non-life insurance firms

(December 04, 2018)
The Supreme Court has allowed the Bureau of Internal Revenue (BIR) to push through with the
implementation of tax provisions that imposes higher tax rates to be paid by non-life insurance
companies compared to life insurance firms. The Makati RTC decision granted the petition filed
by Standard Insurance Co. Inc., a nonlife insurance firm that offers motorcar, cellular phone,
property, marine, accident and comprehensive general liability insurance services. Standard
Insurance was contesting the assessed tax liability issued by the BIR against it arising from a
deficiency in the payment of documentary stamp taxes for the taxable years 2011 to 2013
amounting to P418.8 million, including interest and compromise penalty.

DOH EYES REFUND FOR DENGUE VACCINE

ABS CBN NEWS (Dec 05 2018)

The Department of Health (DOH) is looking into the possibility of requiring the manufacturer of
the world’s first dengue vaccine to refund the government following reports that the treatment
poses risks to people without a history of dengue.
 Payroll growth slows in November as labor market tightens
DEC 6 2018

Private payrolls grew by 179,000 in November, below Wall Street estimates of 195,000,
according to ADP and Moody’s Analytics. The service sector added 163,000, led by professional
and business services. Medium-size businesses were the biggest job creators. This month’s report
is free of significant weather effects and suggests slowing underlying job creation,” says Mark
Zandi, chief economist at Moody’s.
Companies slowed the pace of job creation in November as the labor market indicated more
signs of tightening, according to a report Thursday from ADP and Moody’s Analytics. Private
payrolls increased by 179,000, below the 195,000 growth expected by a Refinitiv survey of
economists. The number also was a drop from the 225,000 in October and below the 203,000
prior monthly average. Job gains were concentrated in medium-size businesses, with 50 to 499
employees, and came almost exclusively from services-providing companies. “Job growth is
strong, but has likely peaked. This month’s report is free of significant weather effects and
suggests slowing underlying job creation,” Mark Zandi, chief economist at Moody’s, said in a
statement. “With very tight labor markets, and record unfilled positions, businesses will have an
increasingly tough time adding to payrolls.” The ADP/Moody’s release comes a day before the
government’s closely watched nonfarm payrolls report. Economists are looking for employment
in the private and public sector to rise by 195,000 and the unemployment rate to hold steady at
3.7 percent. The ADP/Moody’s report occasionally will cause an adjustment in those
expectations, though the two counts sometimes differ by wide margins due to differing
methodologies. From a sector standpoint, service industries added 163,000 workers, with goods-
producing companies making up the balance. Professional and business services led with 59,000,
while education and health services added 49,000 and leisure and hospitality was next with
26,000. Wall Street-related financial activities saw growth of 8,000, while information services
lost 1,000 positions. On the goods side, construction added 10,000 and manufacturing saw
growth of 4,000. From a size standpoint, medium-size companies added 119,000 positions, while
smaller companies rose 46,000. Large firms added just 13,000, including a 7,000 drop for those
with more than 1,000 employees.
Among the big layoffs announced during the month: GM’s plan to close plants and furlough
14,000 employees, 460 by Cisco Systems and 350 by Starbucks. Wells Fargo also said it would
be cutting 1,000 workers as part of a restructuring. The October count was revised lower by
2,000.
 Finance dep’t in no rush to issue dollar bonds
(December 7 2018)
THE GOVERNMENT is in no hurry to issue dollar bonds due to the current volatility on global
markets, the Finance department said. “We are waiting for the right moment. Everything is in the
timing, so we’re just waiting for the right moment,” Finance Secretary Carlos G. Dominguez III
told reporters on the sidelines of the Senate plenary deliberations for the 2019 budget. “we
thought that it would be better to do it earlier than later but it didn’t turn out to be an ideal
situation,” Mr. Dominguez added.

Fed’s Bullard becomes first on central bank to suggest delaying December rate hike
DEC 7 2018

St. Louis Fed President Bullard says the central bank could delay an anticipated December rate
hike. He cites the inversion of the yield curve earlier this week as reason for caution. An inverted
yield curve is often heralded as a sign of economic recession, though the time between inversion
and GDP downturn has varied widely.
St. Louis Federal Reserve President James Bullard said Friday the central bank could consider
postponing its widely anticipated December rate hike because of an inverted yield curve.

BDO Unibank Named Strongest Bank in PH

December 08 2018

BDO Unibank Inc. emerged as Philippines’ strongest bank for 2018 in The Asian Banker’s list
of  Strongest Banks By Balance Sheet.
BDO earned an aggregate strength score of3.31, with five being the highest possible total score,
from six areas of balance sheet financial performance: the ability to scale, balance sheet growth,
risk profile, profitability, asset quality, and liquidity.
Further, the bank ranked 57th overall out of the 500 Asia Pacific banks and financial holding
companies part of the list. The Strongest Banks By Balance Sheet, headed by The Asian Banker,
annually assesses the financial and business performances of Asian Pacific, Middle Eastern, and
African banking industry.

Manila to New York Direct Flights Now Operational With PAL

December 09, 2018
The Philippine Airlines is now offering direct flights from Manila to New York with its
new Airbus A350 —a new milestone in aviation history of the Philippines as they become the
first airline to provide non-stop service from the said destinations.
The first ever flight happened last October 29, 2018, and has been fully operational since
October 30, 2018.

Job openings back over 7 million and near a record high

DEC 10 2018
Total available jobs stood at 7.08 million for October, the second-highest level surpassed only by
the 7.3 million in August, the Job Openings and Labor Turnover Survey showed. The report
further reflects a tightening labor market in which the unemployment rate stands at 3.7 percent.
There were 1 million more jobs than unemployed workers in the most recent government count
of job openings, according to a Labor Department release Monday.

Senate may seek to lift election prohibition on public works

December 11, 2018

THE SENATE does not expect to pass the proposed budget for 2019 in time for third reading
approval before it adjourns this week, but one workaround the chamber is considering to avoid
delaying major projects is to lift the ban on public works construction during election season this
year only, Majority Leader Juan Miguel F. Zubiri said Tuesday.
“We only have until Thursday under the calendar. We will work on Thursday. We will do our
best to finish the budget on Thursday, at least to end the interpellations. But it looks like it will
end there. Unless the President calls for a special session, we won’t finish the budget on time,”
he told reporters before the Senate session. To address the concerns of the executive branch on
the implications of a reenacted budget, Mr. Zubiri said the Senate will push for a special
provision in the General Appropriations Bill or a joint resolution that will exempt “projects that
have to be implemented under capital outlay” from the April-May election ban on public works.
The Senate earlier targeted to have the proposed budget approved on third reading on Tuesday,
Dec. 11, approved on the bicameral coference committee level on Dec. 12, and ratified on Dec.
14 in order to avoid a reenacted budget in January.
The proposed 2019 budget or the general appropriations bill remains in the interpellation stage at
the Senate llaw as of Tuesday afternoon. Mr. Zubiri said the chamber will lose a day in
discussing the proposed budget due to President Rodrigo R. Duterte’s calls to Congress to
convene in a joint session on Wednesday, Dec. 12 to decide on the martial law extension in
Mindanao. Budget Secretary Benjamin E. Diokno earlier warned that a reenacted budget next
year would disrupt the implementation of new projects due to the delayed passage of the budget
and the April-May ban on public works in the run-up to the midterm 2019 elections. Economic
managers also warned the Senate last Monday that gross domestic product (GDP) growth may
decline by 1.1-2.3 percentage points if the reenacted budget applies for the entire 2019. They
also cited possible job losses and the sectors that will be affected, such as construction, public
administration, defense, wholesale and retail trade, land, transportation and education.
The Omnibus Election Code or Batas Pambansa Bilang 881 prohibits the government from
releasing and disbursing public funds for public works 45 days before a regular election.
“We want to put a special provision in the budget that will amend the election code for 2019. In
other words, in 2019, all the projects that have to be implemented under capital outlay will be
exempted from the election ban,” Mr. Zubiri said. It’s either a special provision of the budget or
we pass a joint resolution of Congress amending this particular year the omnibus election code
which bans projects to be implemented during the elections,” he added. He also said the chamber
is also looking to pass the proposed 2019 budget on third and final reading when Congress
resumes session on the third week of January. The chamber is also targeting to have the 2019
budget ratified on Jan. 16. —

PHL salaries seen growing 6% in 2019 — Mercer

December 12, 2018

HUMAN RESOURCES consultancy Mercer said it expects Philippine salaries to increase 6% in

2019 as companies seek out new skills to deal with digital disruption to their business models.
The 6% forecast put the Philippines in the middle of the pack in Asia, with the highest increase
forecast for Bangladesh (10%), India (9.2%) and Vietnam (9.8%). On the low end of the scale,
salaries in Australia are forecast to grow 2.6%, New Zealand at 2.5%, and Japan at 2%.
“The overall hiring outlook for the country is positive, with an average of 50% of companies
across different industries looking to grow their talent pool to seize diversification and growth
opportunities in the face of ongoing digital disruption,” according to Floriza Molon, Mercer’s
Career Business Leader for the Philippines, in a statement on Wednesday.
The study found that the shared services and outsourcing industries have the most positive hiring
outlook in 2019, with 70% of Philippine companies in these sector looking to expand and 24%
looking to maintain current number of employees.
Mercer also found that the changing nature of work due to digital disruption is driving demand
for new skills, as companies in the Philippines begin to offer a significant premium for
employees in data analysis and specialist sales roles.
However, Mercer also found that many companies in the Philippines are struggling to retain their
employees. On average, employees across all industries only stay in their current organization
for five years.
According the study, respondents cited a lack of career path and opportunities to grow, low pay,
and unpleasant relationships with supervisors as their top reasons for leaving their current
organization.
Respondents said they value workplaces that focus on employee health and well-being, career
empowerment, and a sense of purpose.
Ms. Molon noted, “To attract and retain employees, companies are going beyond offering
generous incentives and retention bonuses, and taking a more holistic view of their total rewards
philosophy. They are increasingly focusing on the experiential components of rewards programs
to deliver meaningful career experiences and flexible arrangements, as well as programs to help
manage the physical, financial and emotional well-being of their employees.” — Vince Angelo
C. Ferreras

Bangko Sentral keeps interest rates steady after 5 successive hikes

ABS-CBN News Dec 13 2018
MANILA -- The Bangko Sentral ng Pilipinas kept interest rates steady, pausing for the first time
after 5 successive increases as inflation started to ease from near 10-year highs.
The Monetary Board kept the overnight borrowing rate, which banks use to price their loans, at
4.75 percent on its last meeting for the year.
Inflation forecasts were also lowered to 5.2 percent this year, 3.18 percent in 2019 and 3.04
percent in 2020 from 5.3 percent, 3.5 percent and 3.3 percent, respectively, said BSP Assistant
Governor Francisco Dakila. The 5 successive rate increases, the longest policy tightening streak
since the BSP adopted an inflation-targeting scheme, raised the benchmark from just 3 percent at
the start of 2018. Inflation eased to 6 percent in November, slowing for the first time this year
and easing from 6.7 percent both in September and October. The November inflation print
signals that price spikes will likely fall back to the government's 2 to 4 percent target range in
2019, BPI lead economist Jun Neri said before the decision was announced. "This turn is crucial
as it signals that the risk of further build-up of speculative activities or hoarding of key
commodities has been cut considerably," Neri said. Economic growth slowed to 6.1 percent in
the July to September quarter dragged by a decline in agriculture and weak consumption.

Smart nearly done with mobile broadband upgrade

ABS CBN (Dec 14 2018)
The Philippines’ Smart Communications is close to meeting its target of covering 90%
municipalities with 3G or 4G mobile broadband services by early next year.
— Telecom Asia
 BSP expects current account deficit widening in 2019
ABS-CBN (December 15 2018)
A wider trade gap is seen to push the country's current account deficit to its widest in nearly two
decades. That's the Philippine central bank's forecast for 2019. But officials are still not worried,
Warren de Guzman explains. - Business Nightly, ANC, December 2018

Duterte urges Congress anew: Pass FOI bill

ABS-CBN (December 16 2018)

President Duterte yesterday again appealed to Congress to pass the freedom of information (FOI)
bill, more than a year after he signed an executive order implementing the policy in the executive
branch.

Info-sharing platform to ease doing business

ABS-CBN (December 17 2018)

The Department of Finance (DOF) along with the Departments of Information Technology
(DICT) and of Interior and Local Government (DILG) led the launch of a digital platform that
would streamline the application and renewal of business permits through the online sharing of
information by government agencies involved in this process.

Security Bank survives challenging year with 'very strong' retail business

ABS-CBN News at Dec 18 2018

MANILA - Security Bank on Monday said its retail banking business was "very strong" in 2018
driven by credit card, auto and home loans. The Bangko Sentral ng Pilipinas' (BSP) five
successive rate increases raised the benchmark to 4.75 percent from just 3 percent at the start of
2018. Despite the rising interest rates, Security Bank managed to survive its "most challenging
year" with "relatively respectable numbers," its president and CEO Alfonso Yogi Salcedo Jr told
ANC. “Our star is its retail banking business which again reflects the strengths of the economy.
So I think that’s very encouraging," Salcedo said. Monetary policies by the BSP could be "a lot
more stable" in 2019, as inflation has eased and world oil prices have gone down. Security Bank
is the 6th largest bank in the country in terms of assets, according to the BSP.