Philippine Economy Talk

[uls]

Saan kaya nagpupunta mga workers? Dito sa province namin, and also nearby provinces, hirap mag hire. As if may trabaho na lahat ng tao.

many joined the gig economy

internet jobs like virtual assistant

[uls]

government spending boosted the economy

households affected by inflation

[Monseratto]

Dumping galore: AB Capital dismayed at sluggish PSE trading

[uls]

Dumping galore: AB Capital dismayed at sluggish PSE trading

konti pa patay na stock market natin haha

[Monseratto]

Beside having an economy controlled by political patronage/cronyism... Philippines policies are well known for changing in the middle of the game.

UK envoy: Investors leaving China choose other countries over PHL | Malou Talosig-Bartolome

The Philippines is not on the radar of foreign investors leaving China as they prefer to transfer to countries where regulations are “more predictable,” according to the United Kingdom’s top diplomat in Manila.

“I speak to businesses on a regular basis, and I’m delighted that some have indeed chosen to invest in the Philippines. But some are still cautious and some of the companies that are divesting in China are not yet choosing the Philippines over the likes of Vietnam,” Ambassador Laure Beaufils said in a recent forum held in Makati City.

[falken]

Beside having an economy controlled by political patronage/cronyism... Philippines policies are well known for changing in the middle of the game.

UK envoy: Investors leaving China choose other countries over PHL | Malou Talosig-Bartolome

Can't blame them. Philippines is notorious for changing economic policies on a whim.

Also, it doesn't help that some politicians think of foreign investors as milking cows.

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[dr. d]

it'll take some time for furrin investors to take a better look at the philippines.
we simply have to get our act together, first.

[Monseratto]

BIR's reputation precede itself... even among foreign investors.

Philippines risks losing foreign investment over delayed tax rebates -
Nikkei Asia

Multinationals operating in the Philippines are facing delays in receiving refunds on the value-added tax, with the situation growing so dire that some companies are considering withdrawing from the market.

The government offered VAT refunds to entice global businesses to set up shop in the Philippines, but its complex tax system has made applying for the rebates a costly affair.

With the country emerging as an alternative production hub to China amid rising Washington-Beijing tensions, the issue could turn into a source of trade friction. The U.S. and Japan have begun pressuring Manila to take action.

"If the lack of tax rebates isn't resolved, we'll have no choice but to consider scaling down business or withdrawing," said a source at a large multinational.

The problem is often brought up in such gatherings, but Manila has yet to present sweeping plans to address it.

Agricultural multinational Dole, which exports bananas from the Philippines, has not received a refund on a 12% levy on wholesale costs. The amount is estimated to be as much as $67 million, according to a source.

Energy major Chevron has also lodged a protest against the nonpayment of its VAT refund, according to local media.

"We do not have the exact number, but it seems like this a pain point for almost all claimants, and it cuts across industries," said Jules Riego, co-chair of the financial services, taxes and tariffs committee at the American Chamber of Commerce of the Philippines. The organization plans to urge relevant parties to amend legislation to streamline the paperwork.

A wide range of Japanese companies, including manufacturers, logistics providers and trading companies, are also awaiting VAT rebates. Electronic devices are a main export from the Philippines, and Japanese businesses in this field seem to be affected.

"Even after submitting the proper paperwork to the Bureau of Internal Revenue, the BIR continues to deny [the rebates] by citing rules not clearly written in the tax laws or other laws and regulations," said a source at a company.

Many multinationals expanded into the Philippines with the expectation of tax rebates. Those companies now have to contend with a 12% jump in costs that they did not anticipate.

"The Philippines has become stricter on tax rebates by adopting tax reforms," said a source at a consultancy well versed in the tax structure. "Many companies are giving up on the VAT rebate due to the time, labor and costs of dealing with the BIR."

Companies are also reluctant to push for refunds for fear of facing retaliatory audits by the BIR.

As of publication, the BIR has not answered questions by Nikkei about the nonpayment of VAT rebates.


Last year, foreign direct investment in the Philippines fell 22% to $9.3 billion. Such investments are now on par with 2019, before the pandemic depressed economic activity.

President Ferdinand Marcos Jr., who came to power last year, aggressively courts business leaders to invest in the Philippines on overseas trips. In 2022, the Philippines amended laws to ease restrictions on foreign capital in industry.

But the lack of action on fundamentally reforming the VAT rebate process has led to sluggish growth in investments.

"The government is trying to create a domestic supply chain driven by manufacturers, but the complicated taxes have resulted in an exact opposite situation," said Nobuo Fujii, vice president of the Japanese Chamber of Commerce and Industry of the Philippines.

The BIR recently signed a memorandum of understanding with nine organizations, including the U.S. and Japan chambers of commerce, promising to improve services for taxpayers. The agency appears to be taking action after weathering complaints from multinational corporations.

[Monseratto]

Manila’s luxury residences fastest growing prices globally – report.

The Philippine capital has logged the fastest growing price in luxury residential market across the world, real estate consultancy firm Santos Knight Frank (SKF) said.

In a press conference in Makati City on Friday, the SKF said the price growth of Manila’s prime residences was recorded at 21.2 percent over the past 12 months and at 19 percent in the last six months, based on the Knight Frank’s Prime Global Cities Index.

Upward change in prices in Manila’s luxury residences surpassed Dubai, with a 12-month growth of 15.9 percent; Shanghai at 10.4 percent; Mumbai at 6.5 percent; Madrid at 5.5 percent; Stockholm at 4.7 percent; Seoul at 4.5 percent; Sydney at 4.2 percent; and Nairobi and Delhi, both at 4.1 percent.

For the six-month growth, Seoul followed Manila, with a growth of 15.6 percent, then Dubai at 12.3 percent.

“The luxury residential space is one of several sectors where we’re seeing encouraging market activity. Pent-up demand for prime properties, the return of the residential leasing market, and the tight supply of developments have contributed to significant price appreciation, especially in central business districts,” SKF chairman and chief executive officer Rick Santos said.

In terms of office occupancy rate, Metro Manila logged an average occupancy rate of 80 percent in the past three quarters, above the all-time low occupancy rate of 75 percent.

The lowest vacancy rate is in the Fort Bonifacio area at 11 percent, followed by Makati at 20 percent and Quezon City at 22 percent during the third quarter of 2023.

Fort Bonifacio and Makati continue to lead the lease rate in the National Capital Region at PHP1,214.32 and PHP1,163.28 per square meter per month.

“The office market has continued its road to recovery post-Covid. The increased demand from conventional office tenants and flexible office operators has significantly contributed to the upswing in commercial leasing requirements. We are expecting this momentum to continue in 2024,” Santos said.

[uls]

Manila’s luxury residences fastest growing prices globally – report.

MANILA – The Philippine capital has logged the fastest growing price in luxury residential market across the world, real estate consultancy firm Santos Knight Frank (SKF) said.

In a press conference in Makati City on Friday, the SKF said the price growth of Manila’s prime residences was recorded at 21.2 percent over the past 12 months and at 19 percent in the last six months, based on the Knight Frank’s Prime Global Cities Index.

Upward change in prices in Manila’s luxury residences surpassed Dubai, with a 12-month growth of 15.9 percent; Shanghai at 10.4 percent; Mumbai at 6.5 percent; Madrid at 5.5 percent; Stockholm at 4.7 percent; Seoul at 4.5 percent; Sydney at 4.2 percent; and Nairobi and Delhi, both at 4.1 percent.

For the six-month growth, Seoul followed Manila, with a growth of 15.6 percent, then Dubai at 12.3 percent.

“The luxury residential space is one of several sectors where we’re seeing encouraging market activity. Pent-up demand for prime properties, the return of the residential leasing market, and the tight supply of developments have contributed to significant price appreciation, especially in central business districts,” SKF chairman and chief executive officer Rick Santos said.

The real estate consultancy firm has also seen that the momentum of the Philippine property market has continued after the coronavirus 2019 (Covid-19) pandemic.

In terms of office occupancy rate, Metro Manila logged an average occupancy rate of 80 percent in the past three quarters, above the all-time low occupancy rate of 75 percent.

The lowest vacancy rate is in the Fort Bonifacio area at 11 percent, followed by Makati at 20 percent and Quezon City at 22 percent during the third quarter of 2023.

Fort Bonifacio and Makati continue to lead the lease rate in the National Capital Region at PHP1,214.32 and PHP1,163.28 per square meter per month.

“The office market has continued its road to recovery post-Covid. The increased demand from conventional office tenants and flexible office operators has significantly contributed to the upswing in commercial leasing requirements. We are expecting this momentum to continue in 2024,” Santos said.

“Strong investor confidence in the Philippines during the current Ferdinand R. Marcos Jr. administration has buoyed the real estate market despite rising interest rates,” the SKF chief added.

strong investor confidence but others point out weak investor confidence (like FDI)

so there's confidence and there's no confidence at the same time

schrodinger's ph

[uls]

^^^

examples:

semiconductor manufacturing (intel, texas instruments)

services (accenture, amazon web services, cognizant)

energy (chevron)

others (starbucks -- your favorite)

[uls]

top foreign investors in ph -- japan, singapore, usa

pero mababa lang fdi sa pinas compared to other asean

[Ry_Tower]

DTI monitoring ?shrinkflation? in prime commodities | Philstar.com

For sure marami pa nakaabang next year.

[Athrunzala]

SEC orders Mica Tan’s MFT Group to stop illegal sale of investments

SEC orders MFT group to stop illegal sale of investment contracts

[dreamur]

Listening to JAZA speaking, the guy is a visionary and has a wide grasp of the economic situation both local and regional. Ang layo compared to Villar or the Sys. Not sure about Razon, but I can see why Ayala Corp is managed well.

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[dreamur]

Tall order for babym. NEDA usec Edillon presenting.

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[Athrunzala]

Gold breaks $2,200 an ounce for first time amid inflation, interest rate chaos

Gold breaks $2,2 an ounce for first time amid inflation, interest rate chaos - LifeSite

[baludoy]

a little diversion from the usual doom and gloom write-ups


https://x.com/TheEconomist/status/1783058102016778290

to go beyond the paywall, log-in via your gmail account.

[Verbl Kint]

The Japanese just upgraded our credit rating:


R&I upgrades PHL credit rating to ‘A-’


JAPAN-BASED Rating and Investment Information, Inc. (R&I) upgraded the Philippines’ investment grade rating to “A-” amid the country’s strong economic performance.

“Based on macroeconomic stability and high economic growth path as well as expected continuous improvement in fiscal balance, R&I has upgraded the Foreign Currency Issuer Rating to ‘A-,’” it said in a document posted on its website.

This was one notch up from the country’s previous rating of “BBB+” assigned in August a year ago.

The credit rater also assigned a “stable” outlook for the Philippines from “positive” previously. According to R&I, a positive or negative outlook is not a statement indicating a future change of a rating. If neither a positive nor negative outlook is appropriate, it assigns a stable outlook.




Link to the actual press release from R&I: https://www.r-i.co.jp/en/news_releas..._22203_eng.pdf

[Mask Rider Blac]

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