Friday, January 12, 2018

Public Authorities of the Philippines 3

The Executive Branch

1. Office of the President (OP)

President has a great power such as control over all executive branches, ordinance, etc. The following agencies are under OP.
  • Commission on Higher Education (CHED) - Tertiary Education 
  • Authority of the Freeport Area of Bataan (AFAB) - Sepcial Economic Zone (SEZ) 
  • Bases Conversion and Development Authority (BCDA) - transform former US military bases into civil use. It's subsidiaries are Clark Development Corporation (CDC), John Hay Management Corp., Poro Point Management Corp., Bataan Technology Park, and  North Luzon Railways Corporation.
  • Cagayan Special Economic Zone (CSEZ): SEZ 
  • Commission on Human Rights (CHR) 
  • Cultural Center of the Philippines (CCP) 
  • National Economic and Development Authority (NEDA) 
  • Housing and Urban Development Coordinating Council (HUDCC) 
  • Metropolitan Manila Development Authority (MMDA) 

ECP, Sy, Fitch

1. EasyCall Communications Philippines, Inc. (ECP)
It is expanding data connectivity service far rural area through VSAT.

Notes: It was a "pager" company in 1990s. It's now focusing  Very Small Aperture Terminal (VSAT), a  two-way satellite communications system that can transmit and receive data via remote terminals or hubs. The concept looks good considering the islands Philippine have...but is it feasible or profitable?

2. Herny Sy Jr. invested in Big Boss Cement Inc. personally, which has a patent in cement manufacturing process (Green Cement). Green cement is more resistant to moisture and corrosion.
It has a plant which can produce 1.5 million bags of cement per month. It wanna increase the market share from 3.5% to 13% till 2020.

Notes: Henry Sy JR chairs also SMPH, NRCP. SMPH may buy cement from them..right?

3. Fitch raised Philippine bank ratings on more optimistic outlook. (Tax Reform, Infra spending). Two government-owne Development Bank of the Philippines (DBP) and Land Bank of the Philippines (LBP) were also raised to BBB from BBB-. Private banks included are Bank of the Philippine Islands (BPI), BDO Unibank, Inc., Metropolitan Bank & Trust Company (Metrobank),China Banking Corporation (China Bank), Rizal Commercial Banking Corp. (RCBC), and the Philippine National Bank (PNB).


Notes: Asset based rankings in 2017 are: BDO, MBT, BPI, LBP, SECB, PNB, CHIB, DBP, UBP, RCB.

Why Security Bank and Union Bank are excluded? They have less exposure to Infra funding? hmmm.

Thursday, January 11, 2018

Public Authorities of the Philippines 2

The Legislative Branch (Congress of the Philippines)

1. Senate

- 24 senators elected at large by voters

2. House of Representatives

- not more than 250, 20% of whom must be Party-list representatives.


Resolutions convey principles and sentiments of the Senate or the House of Representatives.

a) joint resolutions — require the approval of both chambers of Congress and the signature of the President, and have the force and effect of a law if approved.

b) concurrent resolutions — used for matters affecting the operations of both chambers of Congress and must be approved in the same form by both houses, but are not transmitted to the President for his signature and therefore have no force and effect of a law.

c) simple resolutions — deal with matters entirely within the prerogative of one chamber of Congress, are not referred to the President for his signature, and therefore have no force and effect of a law.


Bills are laws in the making. They pass into law when they are approved by both houses and the President of the Philippines. A bill may be vetoed by the President, but the House of Representatives may overturn a presidential veto by garnering a 2/3rds vote. If the President does not act on a proposed law submitted by Congress, it will lapse into law after 30 days of receipt.


The Judicial Branch

1. Supreme Court (SC)

It is the highest court in the Philippines. The chief justice and associate justices are appointed by the President of the Philippines, chosen from a shortlist submitted by the Judicial and Bar Council. The president must fill up a vacancy within 90 days of occurrence.


2. Court of Appeals

It is is the second highest tribunal in the country.


3. Trial Courts

There are Regional, Metropolitan, Municipal, Municipal Circuit Trial Courts.


There are two types of special courts.

1. Court of Tax Appeals

It, which is of the same level as the Court of Appeals, mostly engaged in Tax related appeals including tax related criminal offences.


2. Sandiganbayan

It is a special graft court created to attain the highest norms of official conduct among officials and employees in the government.



PIZZA, CHP, JGS, AGF, MER

1. Shakey's Pizza Asia Ventures Inc. (PIZZA) will open 20 new stores in 2018. If finished, it's network will reach to 228.
Notes: Can it still maintain the leading market share in chained full-service restaurant? What other companies belong to this category? Maybe MAX.

2. Cemex Holdings Philippines Inc. (CHP) got approval from DENR for the expansion (1.5 million tons per year) of its production line (Solid Cement) in Antipolo, Rizal.
Notes: Cement prices is low. Imports a lot. It's infra boom but why this company can't benefit. Will it be really better?

3. Robinsons Bank, a banking unit of JGS, ties with Pru Life UK to offer life insurance.
Notes: Why the group didn't make it big? only 123 branches...

4. AG Finance, Inc. (AGF)
New parent company, ISOC Holdings Inc. (67%) changed board members. Michael C. Cosiquien elected as a new chairman. He is a major stockholder of MWIDE.
Notes: They will transform AFG to a real estate, energy or logistics firm but nothing is final.  ISOC is currently building a 2,412 square-meter cold storage facility. 

5. Meralco Powergen Corp (MGen), a wholly owned subsidiary of MER, plans to consider investment in two (2) wind-power projects amounting to P40 billion. (total 300 MW)
Notes: Maybe they are thinking of energy mix. Relying on a lot natural gas power....constructing a lot of coal power.





Staying and Working

You need to know several more things when stay, work or return back to your country. They use the term "Aliens" for foreign nationals. Is it correct?

1. ACR I-Card (Alien Certificate of Registration Identity Card)

All foreigners (immigrant and non-immigrant visa holders) including 9A Visa holders who stays more than 59 days should register to immigration. It's a credit size microchip card which can be used as an ID. In most cases, you can just bring this card instead of the original passport. For 9A Visa, you will be asked to apply this card when you try to extend over 59 days. For other long term Visas, you should apply this once your Visa application is approve. Some Visa holders like PEZA (47A2) are exempted from ACR I-Card.

It serves as Re-entry Permit (RP) and Special Return Certificate (SRC) of the holder upon payment of the required fees. ACR I-Card is a valid ID which can be presented for any purpose such as opening bank account, car registration, etc. You may requested to present two valid ID when opening a bank account. Usually banks don't allow 9A Visa holders opening a account.


2. Annual Report (AR)

All registered foreigners (ACR I-Card holders) should report in person within the first 60 days of every calendar year. Not all immigration branches accept AR, so you should check where is the nearest branch which accept AR in the immigration web site. (www.immigration.gov.ph)

a) Main office in Intramuros or ICTS and ACR I-Card AR connectivity - accept all

b) ICTS AR connectivity without ACR I-Card AR connectivity - update only w/o arrears

c) Other BI (Bureau of Immigration) offices : not accept AR

Notes: It's PhP310 and there will be monthly fine of P200.00 for delayed Annual Report (reckoned from March 2 of the current year)

3. ECC (Emigration Clearance Certificate)

There are two types of ECC, ECC-A (also referred to as regular ECC) and ECC-B.
The following foreign nationals must secure an ECC-A prior to their departure:

a) Holders of Temporary Visitor Visa (also referred to as tourist visa) who have stayed in the Philippines for six (6) months or more;

b) Holders of expired or downgraded Immigrant or Non-Immigrant Visas;

c) Holders of valid Immigrant or Non-Immigrant Visas but are leaving for good;

d) Philippine-born foreign nationals who will depart from the Philippines for the first time;

e) Holders of Temporary Visitor Visa with Orders to Leave;

f) Bona fide seafarers who have stayed in the Philippines for 30 days or more and has a duly approved discharge from BI.

ECC-B is issued to departing holders of Immigrant and Non-Immigrant visas with valid ACR I-Cards and are leaving the country temporarily.

A foreign national may apply for an ECC at least 72 hours prior to his/her departure from the Philippines. The ECC is valid for one (1) month from the date of issue, however, you may only use this once regardless of its validity.

Holders of valid immigrant or non-immigrant visas (multiple entry Visas) who intend to return to the Philippines may secure the ECC at the airport. SRRV and SVEG Visa holders are exempted.

Notes: You are not allowed to leave without ECC even though you have flight ticket already. Make sure to secure this in advance.

Notes: 9A Visa holder cannot secure the ECC at the airport. If you stayed more than 6 months, make sure to secure it in advance.

Notes: If you decided to just pay at the airport, bring at least P3,000. (It varies but almost 3k.)

Notes: 47A2 Visa holders were exempted automatically but looks like rules are changing from time to time. There was an announcement from immigration in early 2015 saying "Only visa holders whose visa clearly contains the text “Exempted from ECC/SRC” and whose Endorsement Letter contains the text “free from payment of visa and immigration fees” continue to be exempt from paying immigration fees upon each departure from the country." The decision of exactly who will be exempt from paying these immigration fees lies solely with the Department of Justice on a discretionary basis and will often be dependent on the employee’s sponsoring company. Therefore, if you have or apply this Visa, please check Endorsement Letter or Visa Order to verify.

4. Airport Tax

In accordance with Presidential Decree (PD) 1183, travelers shall pay travel tax on departure. You can find a Tourism Infrastructure and Enterprise Zone Authority (TIEZA) office in the airport.

a) Filipino citizens.

b) Foreigners who are permanently residing or immigrants in the Philippines.

c) Foreigners (non-immigrant visa holders) who have stayed in the Philippines for more than one year.

Sometimes, it’s included in the ticket, so check if it's included or not. There are some exempted personnel but most of you may not belong to this category. If you want, check the list and how to apply in TIEZA website. The full travel tax is P1,620 for passengers on economy class plane tickets and P2,700 when flying first class.

You should pay Terminal Fee also. It might be also included in the ticket price, so check first. Nobody is exempted. It's around P550 to P700.

Notes: Moving out? Stayed more than 1 year with 9A Visa? Make sure to bring some Pesos to the airport for ECC, Airport Tax and Terminal fee.

5. Working Permit

If you are not an immigrant, you should secure Working Visa (9G) or Special Economic Zone Visas (47A2). AEP is one of the requirement to obtain Working Visa.

In general:

a) securing working permit is the prerequisite securing a working Visa;

b) holders of immigrant Visas are exempted from working permit. They can work without this;

c) Foreign nationals who are non-immigrant permanent residents are required to obtain an Alien Employment Permit from the Department of Labor and Employment (DOLE);

d) You cannot work with Tourist Visa (9A);

e) The work's characteristic wise, it should require a foreigner to perform the task. You cannot just handle simple manual work any Filipino can handle. However managerial positions are widely accepted in applying work permit.

f) Some positions are not allowed to foreigners like Corporate Secretary.

Special Work Permit (SWP)

The SWP is only a permit to work in the Philippines and does not include the authority to stay.

The holder is responsible for keeping his temporary visitor’s visa valid during his or her stay in the country. SWP is also issued to musical artists, performers, professional athletes, and other foreigners who will render temporary services in the country. The Bureau of Immigration issues an initial validity of three (3) months, which can be extended only for another three (3) months.

Provisional Work Permit (PWP)

Foreign nationals who are on temporary visitor visas, wishes to commence work and whose employment visa application, either the 9g or 9d, is in progress. The validity period of a provisional permit is normally three months from the date of issuance or until the 9g visa is issued, whichever comes first. Foreign nationals who intends to commence employment while his or her Alien Employment Permit is pending with the Department of Labor and Employment must also secure the provisional permit to work. the provisional permit to work is extendable until a working visa has been approved.

Alien Employment Permit (AEP)

This permit authorizes a foreign national to engage in gainful activities provided that there is no available domestic manpower for the particular designation. Holders of other functional visas such as Special Investors Resident Visa (SIRV), Special Resident Retiree’s Visa (SRRV), Treaty Traders (9D) Visa, or Special Non-Immigrant Visa (47A2) are also subject to an AEP. An AEP is initially valid for one (1) to five (5) years depending on the duration of the contract and renewable for a maximum period of (5) years. Apply to DOLE Regional Office having jurisdiction over the principal place of business of the petitioner.

The following categories of foreign nationals are exempt from securing AEP:

a) Members of the diplomatic services and foreign government officials accredited by the Philippine government;

b) Officers and staff of international organizations of which the Philippine government is a cooperating member, and their legitimate spouses desiring to work in the Philippines;

c) Foreign nationals elected as members of the Governing Board who do not occupy any other position, but have only voting rights in the corporation;

d) All foreign nationals granted exemption by special laws and all other laws that may be promulgated by the Congress;

e) Owners and representatives of foreign principals, whose companies are accredited by the Philippine Overseas Employment Administration (POEA), who come to the Philippines for a limited period solely for the purpose of interviewing Filipino applicants for employment abroad;

f) Foreign nationals who come to the Philippines to teach, present and/or conduct research studies in universities and colleges as visiting, exchange or adjunct professors under formal agreements between the universities or colleges in the Philippines and foreign universities or colleges; or between the Philippine government and foreign government; provided that the exemption is on a reciprocal basis;

g) Resident foreign nationals and temporary or probationary resident visa holders under 13 series employed or seeking employment in the Philippines.

6. Waiver of Exclusion Ground (WEG)

Minor children below 15 years old who are traveling to the Philippines unaccompanied by or not joining his/her parent/s to the Philippines need to apply WEG. The WEG Order will be issued by the Bureau of Immigration (BI) at the port of entry.

a) Fee is around P3,120 per child.

b) Affidavit of consent by either parent or legally appointed guardian of the child.

c) Photocopy of the data page of the child and guardian’s passport.


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MARKET ISSUES

[last partial update : 02/28/2018] Macro and Overseas (a) US interest rate : 1.25 ~ 1.5%, May increase 3 times in 2018 (b) US 10 yr bond...