BSP amends regulations on Foreign Exchange transactions

The Bangko Sentral ng Pilipinas (BSP) conducted a briefing on the amendments to its Manual of Regulations on Foreign Exchange (FX) Transactions last 06 August 2019 at the BSP Assembly Hall in Manila.

Deputy Director Jodeth Niña Yeung discussed in details the recent amendments to BSP’s Manual of FX Regulations. Highlighting that these new policy reforms made the country’s FX regulatory framework further liberalized. In fact, according to Chinn-Ito Financial Index (2016), the Philippines’ FX flow openness index remains higher compared to ASEAN neighbors: Malaysia, Indonesia, Thailand and Vietnam. Because of BSP’s facilitative and more liberalized regulations, FX transactions are now more streamlined and simplified.

The amended FX regulations include the following major reforms:

1. Lifting of prior BSP approval requirement for purely private sector FX loans. Henceforth, companies need only to register.
2. Replacement of a positive list to a general policy requirement for loan purposes that can be funded with proceeds of foreign currency loans. FX transactions need only be legitimate, not contrary to laws, regulations, public order, public safety, or public policy.
3. Lifting of BSP registration for certain short-term private sector loans, provided these are duly reported to BSP.
4. Lifting of the USD 60,000.00 Daily limit on FX sale by depository banks for the balance of peso deposit accounts of non-residents.
5. Migration to electronic submission of supporting documents, from previous hard copy requirement.
6. Broadened coverage of inward investment transactions from previous two (2) categories: foreign direct investments and portfolio investments, to three (3) new categories, namely: instruments issued by residents, non-residents, and other forms of investments.
7. Expansion of the list of banks allowed to register investments on behalf of BSP.
8. Provision of a grace period of one (1) year from effectivity of the implementing Circular to file applications for registration of investments, regardless of the date of funding.

BSP underscores that these reforms are significant leaps that will allow foreign investors, public and private entities, and overseas Filipinos to have more flexibility in managing their foreign currency transactions and investments.

However, BSP despite its continuing efforts to further liberalize FX regulations, the banks may still adopt internal policies and are expected to exercise due diligence in compliance with these amendments. –EPV

The Department of Tourism (DOT) in collaboration with Go Negosyo and other partners like the  ASEAN Business Advisory Council, Department of Foreign Affairs, Tourism Board of the Philippines, Philippine Chamber of Commerce and Industry and the Filipino Chinese Chamber of Commerce and Industry , conducted the country’s First National Tourism Summit last 02 May 2019 held at the World Trade Center in Pasay City.

The summit focused on how to create a more integrated tourism industry not just in the Philippines, but across the ASEAN region. The goal is to achieve sustainable island tourism that will contribute to the socio-economic growth of the region. Speakers and experts from different countries shared their insights and best practices on how to achieve this goal.

As such, the country’s tourism industry was identified as one of the pillars for greater inclusive growth. The DOT is confident that there will be around 8.2 million tourists this year; a 15% increase from last year’s 7.1. million tourists. This signals an increased demand for products and services, which can be supplied by our entrepreneurs from different sectors, thus, contributing livelihood and sustainable income for more Filipinos.

As an inclusive sector, tourism extends not just to the services provided by airlines and travel agencies, but includes other industries such as culinary, retail, transportation, logistics, medical and agriculture. As tourism booms, more and more businesses can flourish and cater to the growing needs of travelers. Indeed, a boost in tourism is a boost in our economy- more tourists, more of the much needed revenue for the economy.

Hence, all kinds of businesses, whether micro, small or medium will gain from the sector’s inclusivity, including those in far flung tourist spots in the country. More diverse products, services as well as culture will be offered from these beautiful places in and around the country. GTM

PHILEXPORT Region 3 (Pampanga Chapter) now endorses Travel Tax Exemption (TTE) applications of its members in Region 3 (Central Luzon). To facilitate the processing of TTE applications, the Technical Working Group on EO 589 approved the request of PHILEXPORT-NATIONAL for the additional signatories of its chapter in Pampanga.  PHILEXPORT-R03 now endorses TTE applications directly to the Export Development Council which monitors and oversees the implementation of the Executive Order.

Exporters who will travel abroad to participate in international trade fairs and exhibitions, promotion and marketing activities of Philippine export products  can avail the  TTE incentives under EO 589.

Region 3 Exporters may download TTE application form at the EDC website (www.edc.net.ph) and submit  to PHILEXPORT R03 at Deco Central, Bldg., N3679 C.M. Recto Highway, Clark Freeport Zone, Pampanga. Telephone numbers (045)599.6214/ 599.5170  Mobile No. 0917.6214758 or email at philexportr3@yahoo.com

The Department of Trade and Industry (DTI) through the Export Marketing Bureau, the Philippine Exporters Confederation, Inc. (PHILEXPORT) and the Export Development Council leads the conduct of the 2018 National Export Congress (NEC). NEC is the highlight of the week-long celebration of the National Exporter’s Week (NEW). This year’s theme, “SPICE Up to Scale Up! (Stimulate. Permeate. Innovate. Connect. Expand!)”, is consistent with the thrust for the Philippine export industry to be at the cutting edge of innovation and connectivity as a competitiveness strategy.

Over 700 delegates including exporters, business support organizations, policy makers, and academe will convene at the Philippine International Convention Center (PICC), Pasay City on 07 December 2018 for the annual NEC. The event will have discussions on various topics such as global outlook and prospects for Philippine exports, expanding market, ease of doing business, industry-led innovation and connectivity. Export Enablers Exhibit and Logistics Fair will also transpire during the event which will showcase the services of government clearance agencies, financing institutions, Halal certifying bodies and logistic providers.

The NEC is the main activity of the National Exporters’ Week (NEW). The first week of December is declared as the Exporters’ Week per Presidential Proclamation 931, Series of 1996 and House Resolution 33, in order to obtain total commitment of the government and the private sector to continuously work together to sustain and maintain export promotion and development.

Also part of the week-long NEW celebration is the conduct of Usapang Exports, an information sessions under the DTI-EMB’s Philippine Export Competitiveness Program (PECP), on 03-05 December 2018 and the conduct of Logistics Summit organized by the DTI-Competitiveness Bureau (CB) on 06 December 2018. (MDGTD)

Philippine and  German delegates to the benchmarking mission on Dual Training System in Malaysia and Thailand

The Philippines needs to catch up with ASEAN neighbors in the implementation of its Dual Training System (DTS). This conclusion is a result of the recent benchmarking mission to Malaysia and Thailand on Dual Training System conducted last 22-27 October, 2018. The main objective of the mission is to benchmark and network with the Malaysia and Thailand Technical Vocational Education and Training (TVET) systems and approaches with the end view of adoption and potential best practice elements in Dual VET, certification and In-company training which are the essential elements of the Dual Training System (DTS).

The lessons learned include determination of how the Dual VET policy framework in both countries is operationalized on the ground; observation how the Malaysian and Thai Dual DTS models work; gainful and deeper insight into both countries’ experiences through direct interaction with the DTS practitioners; comparison of various approaches and identification of what is adaptable in the Philippines; and instituting networks with Malaysia and Thai Dual VET players.

The Malaysian government fully supported the DTS system in their country, in coordination with the German Chamber of Commerce and Industry-Malaysian Chapter (GCCI-Malaysia), by providing land, building and training facilities and equipment to train those students who opted to take vocational courses as well as their unemployed youths. In turn, GCCI-Malaysia assisted the government by partnering the Malaysian training institutions with multinational companies in terms of technical assistance and acquiring state of the art equipment/ technology or laboratories for use of students and faculties alike. Courses offered in the Malaysian DTS program include Mechatronics, Industrial Management and Logistics Operations Management, Electronics, Automation, Industry 4.0 Specialists course, International Master Craftsman, to name a few. However, unlike in the PH, Malaysia does not implement a ladderized form of education wherein subjects were not credited by the Malaysian higher education institutions when students who took up vocational courses finally opts to enroll in college.

The Thai government also fully supports the DTS system in their country in collaboration with the German Chamber of Commerce and Industry-Thailand (GCCI-Thailand). It can be noted that the DTS implementation in Thailand specifically of the Don Bosco Academy can be replicated in the PH to help  strengthen resurgence of the country’s manufacturing sector e.g., students produce products for exporters using equipment and facilities donated by multi-national companies or thru the assistance of the German Federal Republic. In addition, Thailand is implementing a ladderized form of education where subjects being taken in the tech-voc curriculum are being credited by the Thai higher education institutions.

Meanwhile, in order for the PH to catch up, it is recommended that a review and subsequent amendment of the current Dual Training System Law be considered.  This is so because in the DTS law, the Technical Education and Skills Development Authority (TESDA) is both the regulator and provider of all technical and vocational trainings in the country, notwithstanding the private training institutions in the country who are to be accredited first by the latter before they can operate.  The PH should also formulate strategies and interventions needed by the country’s apprenticeship program as it relates to our current “endo” regime.  Apprenticeship programs under the dual training system can last from two (2) to three (3) years.  Hence, with our current “endo’ arrangements, this would be impossible.

The said study mission was spearheaded by the AFOS Foundation – K to 12 Plus Project ( a TVET training institution based in Cebu) in collaboration with the German Chamber of Commerce and Industry Philippines (GCCI-PH). Twenty five (25) participants (three (3) Germans and twenty two (22) Filipinos) from private sector, academe and training institutions took part in the said activity. (GTM)