The Philippines posted average economic growth of 6.4% over 2010-19. While the Covid-19 pandemic tested the country’s resilience during 2020, the response measures contained within the two national stimulus packages, Bayanihan 1 and 2, provided support to vulnerable industries. Meanwhile, the rollout of the imminent Corporate Recovery and Tax Incentives for Enterprises bill is expected to create
This chapter examines the legal system of the Philippines, focusing largely on the stipulations of Bayanihan 1 and 2, which were passed into law in March and September 2020, respectively, to address the economic and health impacts of the Covid-19 pandemic. The chapter also outlines new guidelines on remote participation, corporate donations, corporate debt vehicles and draft guidelines for the licensing…
Interview:Raoul R Angangco Which legal reforms should be prioritised to stimulate growth after the Covid-19-induced recession? RAOUL R ANGANGCO: The Bayanihan to Recover as One Act (Bayanihan 2) and tax reforms such as the Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill should be prioritised to stimulate growth after the recession, as they form part of the government’s…
In 2020 the Philippines experienced one of the world’s longest and strictest lockdowns implemented to stem the Covid-19 pandemic. These measures presented significant economic challenges. Indeed, GDP contracted by 11.5% year-on-year in the third quarter of 2020 – albeit at a slower rate than the previous quarter, which saw a drop of 16.9%. Nevertheless, swift action was necessary, and in…
This chapter examines the legal system of the Philippines, including recent reforms that have been passed into law and their impact on the business community. The chapter covers amendments to: The New Central Bank Act; The Philippine Deposit Insurance Act; The Anti-Money Laundering Act. In addition, it provides an overview of the newly implemented Act Strengthening Compliance with Occupational Safety…
Interview:Alejandro Alfonso E. Navarro What regulatory changes are being implemented to stimulate private sector activity? ALEJANDRO ALFONSO E. NAVARRO: The Philippines has had consistent problems with basic regulatory processes such as the issuance of business permits, due to both corruption and simple red tape. This was a major factor contributing to the decline in the country’s ranking…
The current administration is continuing its push to bolster the Philippine economy’s resilience by putting strong policies in place to promote state and market collaboration. These include initiating much-needed reforms to open the market, supplementing job creation through ambitious infrastructure projects, and strategically addressing poverty reduction and labour expansion. The developments…
Favourable demographics, ongoing structural reforms, and an increasing openness to foreign participation bode well for the prospects of the Philippine economy over the medium to long term. In 2019 cooling inflation as a result of easing commodity prices and the implementation of supply-side policies have improved business sentiment, while the general endorsement of President Rodrigo Duterte’s ag
Sound fiscal and monetary policy-making should help prevent the economy from overheating, even as socio-economic challenges, rising income inequality and inflation pose as obstacles to inclusive growth. Public debt is low and fiscal buffers remain strong, although a shift away from public-private partnerships as the preferred model for new infrastructure projects will see government borrowing spik
Interview:Augusto A. San Pedro Jr. What are the major challenges faced by multinational corporations entering the Philippine market? AUGUSTO SAN PEDRO: Restrictions on foreign ownership in certain sectors, such as construction, real estate and telecommunications, are a major challenge for multinational corporations intending to enter the market. These requirements restrict competition and prevent…
