2 | Header AmCham Philippines | July 2021 3

AmCham Philippines | July 2021 5

EDITOR-IN-CHIEF: Ebb HinchliffePUBLICATIONS CONSULTANT/EDITOR: Leslie Ann MurrayCOMMUNICATIONS AND MARKETING MANAGER: Chi PeñaADVERTISING AND PROMOTIONS HEAD: Chet GuevaraMULTIMEDIA DESIGNER: Keith SiguaPUBLICATIONS COMMITTEE CHAIRMAN: Ernie CeciliaPUBLICATIONS COMMITTEE MEMBER: J. Albert GamboaPUBLISHED BY: The American Chamber of Commerce of the Philippines, Inc.MEMBER: Publisher Association of the Philippines, Inc.

All views expressed in all articles are those of the authors and not of The American Chamber of Commerce of the Philippines, Inc. The American Chamber of Commerce of the Philippines, Inc. accepts no liability for the accuracy of the data or for the editorial views contained in the articles. Publication of unsolicited articles is at the sole discretion of the Publications Committee. To adhere to publication deadlines, the Publications Committee reserves the right to defer for subsequent publication any submission due to matters of space or time constraints. Further, the AmCham Publications Committee reserves the right to refuse any submission due to style or content, or context, which may be in conflict with AmCham mission. No article or any content thereof may be reproduced in any manner or form without the prior written consent or authorization of The American Chamber of Commerce of the Philippines, Inc.

All rights reserved. AmCham Business Journal is a general business magazine published monthly by The American Chamber of Commerce of the Philippines, Inc., with offices at 2nd Floor, Corinthian Plaza, 121 Paseo De Roxas corner Gamboa Street, Legazpi Village, Makati City 1229 (C.P.O. Box 2562, Makati City 1265), Philippines; telephones: (632) 8818-7911 to 13;email: publications@amchamphilippines.com;website: www.amchamphilippines.com.

Publication Registration No.: ISSN-0116-452X

GUIDELINES FOR ARTICLE SUBMISSIONSThe AmCham Business Journal welcomes articles of interest to our readers, who are primarily members of the American Chamber of Commerce of the Philippines. We look forward to your submissions and are keen to share them with our readers according to these guidelines:

Deadline, Length, and FormatArticles must be in Word (.doc/.docx) format and emailed toleslie@aamchamphilippines.com. To ensure objectivity and credibility, superlatives and awards must be cited from a third source.

Author IdentificationAlong with the article, add a biography with a maximum of 70 words. This should include the author’s present position, organization, and email address. Previous experience, educational background, and previously published articles can also be added.

Style and Editorial ReviewThe Journal endeavors to preserve your intended message; however, articles will still be edited for clarity and readability. Depending on the nature of the changes, the Journal will notify you of changes. If no response to these changes is made within three (3) working days, we will assume to mean acceptance. The Journal holds the right to final publication.

Images, Charts, and GraphsImages, charts, and graphs are encouraged. Images must be unedited and saved in JPEG format with a minimum 300 dpi resolution. Please include captions. Charts/graphs must be sent in Microsoft Excel or PDF format with a title.

Questions and Comments to the Editor

Any content that appears in the Journal may not be reprinted, copied, or reproduced without the written permission of the Chamber; upon such permission, acknowledgment must be given for any item reprinted, copied, or reproduced as to the source of the item.

For questions about the Journal, kindly email the team atleslie@amchamphilippines.com.

ContentsJuly 2021 | Vol 96 | No 07

Organizational Sections08 AmCham Officers &

Directors

08 AmCham Mission Statement

10 AmCham Corporate & Associate Partners

11 How to be an AmCham Member Partner

12 AmCham Chapters & Advocacies

14 AmCham Committees - Your MAIN Partner in Business

15 AmCham Committees

16 Members' Birthdays:July - September

17 New AmCham Members and Individuals

56 AmCham Staff

56 Connect with AmCham

Business of Business36 Financial Literacy:

A Life Skill that Schools Don’t Teach

Cover Stories18 The Rise of Digital

Currencies32 Democratizing Finance:

Bataan Goes Global38 How President Biden’s

Tax Proposals May Impact US Inbound Investments

Company News28 Preventive vs.

Corrective Career Management: Tactics to Improve Organizational Performance

48 First-Ever Comprehensive Cleft Care is now in Cebu

49 BDO Pay - Your New Mobile Wallet

50 P&G Establishes Forest for Good in Sierra Madre Mountain Range

52 Railway Projects of the Philippines

54 Moving Without Fear - Successful International Relocations Amid COVID-19

06 Editorial

Features22 HR Leaders Perspective

on Hybrid Model Evolution

24 Redefining Philippine Taxation: CREATE Part 4

34 Statement by U.S. President Joe Biden and AmCham Philippines on the Passing of Former Benigno Aquino III

42 Celebrating the 75th Fil-Am Annual Friendship Day

AmCham Foundation

42 The Support of Communities Affected by COVID-19 Pandemic

Democratizing Finance:Bataan Goes GlobalMariveles is a first-class municipality at the southern tip of Bataan Peninsula. This picturesque coastal town, adjacent to Manila Bay and the West Philippine Sea, is the site of the Freeport Area of Bataan (FAB), a special economic zone with the fastest growing freeport in the Philippines.

continue reading to page 32...

AmCham Philippines | July 2021 76

This month’s Business Journal is covering the world of Finance. For the past couple of years the world FINTECH kept appearing in my world. It became a common topic in our Financial Services Committee Meetings and occasionally in our Information Communication Technology Committee meetings.

I have to admit that being a scuba diver, when I first heard FinTech I was excited. I thought it was referring to some new snorkeling or diving equipment. Can you imagine my disappointment when I found out it had to do with banking and strange things like crypto-currency. The term crypto, alone, made me think it was something one found in cemeteries or mausoleums.

Having sat through and listened to many Financial Services and ICT meetings, I have arrived at a degree of enlightenment.

Reviewing my notes and doing a bit of research, here is a bit of what I’ve gleaned. Most of you reading this will know this already but for the grey haired generation maybe it will shed some light.

First FinTech is short for Financial Technology. This technology is used to improve the use of financial services to help companies, business owners and consumers manage their operations by applying the financial software on their computers and smartphones to given situations.

When FinTech first emerged it was used primarily by Financial Institutions such as banks, but it has made a big shift to customer service and has thus taken on a more consumer-oriented focus. This includes opportunities in the non-profit sectors as well as education, investments and the retail trade to name just a few.

Further, as mentioned above, it includes the area of crypto-currencies such as bitcoin which tends to hog the daily headlines. However it should be kept in mind that crypto- currency is an extremely small part of the overall traditional banking industry.

FinTech can be as simple as an application that can prevent errors is common bookkeeping, or as complex as one applied to digital monies – and almost everything in between.

The pandemic has pushed everyone into the digital age. FinTech fits right into the mold. It allows us to avoid face-to-face contact for transactions in a brick-and- mortar financial office by allow us to get credit, manage investments or raise funds for a start-up, without ever setting foot in a bank or having a face-to-face meeting with anyone.It seems obvious that the younger ones amongst us are the more likely to utilize FinTech , while the older ones the less likely. Definitely Millennials are in tune with FinTech and perhaps the Baby Boomers (like me) less likely to use it as much since perhaps we fail to see it addressing our problems.

However, I saw an Ernst & Young article from 2017 that showed one-third of all consumers, regardless of age, use two or more FinTech services. Guess we are never too old to learn.

Well, you may not have reached nirvana by reading this editorial, so you will need to read the articles in this month’s magazine to reach full enlightenment. Keep flipping the pages for a better understanding of what is happening in the Financial World.

Ebb Hinchliffe, Editor-in-Chief

July 2021 | Vol 96 | No 07| Editorial

NORTH AMERICA DESK

Pair up your business acumen with our financial expertise. Let’s work together to set up and expand your business in the Philippines.

Contact BDO’s North America Desk today.

Facilitating cross-border collaboration

ASC Ref. No. B061P120720BS

BDO Unibank is regulated by the Bangko Sentral ng Pilipinas with telephone number (02) 8708-7087, email address consumeraffairs@bsp.gov.ph, and webchat at www.bsp.gov.ph.

For inquiries and concerns, please call our BDO Contact Center at (02) 8631-8000.

Deposits are ensured by PDIC up to P500,000 per depositor.*

The BDO, BDO Unibank and other BDO-related trademarks are owned by BDO Unibank, Inc.

World ofFinance

AmCham Philippines | July 2021 9| AmCham Officers & Directors8

The American Chamber of Commerce of the Philippines, Inc.Putting your Business Forward

Since 1902

FRANK THIELQuezon PowerPresident

AILEEN JUDAN JIAOIBM Philippines1st Vice President

ROBERTO BATUNGBACALDow Chemical Pacific Ltd.2nd Vice President

PHILIP SOLIVENCargill Philippines, Inc.Treasurer/Director, Ex-Officio

MARISSA DE UNGRIAS.C. Johnson & Son, Inc.JAMES DONOVANADEC InnovationsRAFAEL S. FAJARDOProcter & Gamble International Operations (SA) ROHQPETER HAYDENCapital One Philippines Support Services Corp.CARLOS MA. G. MENDOZAJPMorgan Chase and Co.TONY RUTLANDFluor Daniel, Inc.RICK SANTOSSantos Knight Frank, Inc.BRUCE WINTONMarriott InternationalDirectors

GEORGE M. DRYSDALEMarsman Drysdale GroupDONALD R. FELBAUMOptel LTD.Directors, Ex-Officio

EBB HINCHLIFFEAmCham PhilippinesExecutive Director

ATTY. AILEEN TOLOSA-LERMARomulo Mabanta Buenaventura Sayoc de los AngelesLaw OfficeCorporate Secretary

JOHN D. FORBESThe Arangkada Philippines Project (TAPP)Senior Advisor

DR. FRANCISCO VILLANUEVAClark Development CorporationPresident, AmCham North Luzon Chapter

BRIAN CONNELLYMarco Polo Plaza CebuPresident, AmCham Visayas Chapter

LUIS BONGUYANIndividual MemberPresident, AmCham Mindanao Chapter

MISSION STATEMENT

The Chamber exists to serve the needs and wants of Filipino and U.S. businesses through the participation of members in promoting their long-term objectives, while fostering closer relationships between the two countries and contributing to the civic and economic development of the Philippines.

For more information, please contact AmCham’s Head of Corporate Partnerships.Email: donna@amchamphilippines.com / Tel: (+632) 8818 7911 loc. 218

AMCHAM CORPORATE & ASSOCIATE PARTNERSAmCham Philippines is the longest-serving and most vibrant American Chamber in Asia, and is recognized as the voice of business since 1902.

The AmCham Corporate and Associate Partnership offers companies year-round benefits, including expanded access to AmCham core membership resources for an enhanced leadership status within the community, as well as greater intelligence, access, influence, and exposure.

Regular Firm Membership *A – Php 57,800 | B – Php 47,300(*+Php 5,000 one time registration fee)

This membership is available to corporations, partnerships, proprietorships, and other business organizations and enterprises that are registered and qualified to do business in the Philippines, with 30% or more of the ownership held by American citizens and/or corporations.

In a partnership, the American partner/s must have a share of interest of 30% or more. In the case of nonstock corporations and unincorporated associations, at least 30% of the voting members must be Americans.

In this classification, the firm shall be represented by an accredited individual who must rank as a senior executive but may not be necessarily be an American citizen.

Regular Individual Membership Php 34,700(*+Php 5,000 one time registration fee)

This membership is available to individual persons residing in the Philippines who are American citizens and who are not eligible for any other membership classifications.

Associate Firm Membership *A – Php 57,800 | B – Php 47,300(*+Php 5,000 one time registration fee)

This membership is available to firms that are qualified to do business in the Philippines, with 71% or more of the ownership held by citizens or corporations that are non-Americans. The firm shall be represented by an accredited individual who must rank as a senior executive and may be of any nationality.

Associate Individual Membership Php 34,700(*+Php 5,000 one time registration fee)

This membership is available to individuals residing in the Philippines who are non-American citizens and who are not eligible for any other membership classifications.

Non-Profit and Government Membership Php 23,400(*+Php5,000 one time registration fee)

This membership is available to: non-profit, charitable, civic, educational, religious and eleemosynary organizations, associations and institutions in the Philippines. Under this classification, an individual accredited by the organization shall serve as a representative. Employees of the U.S. Federal Government can also avail of this membership category.

Non-Resident Membership Php 23,400(*+Php 5,000 one time registration fee)

This membership is available to firms and individuals who are doing business outside the Philippines but would like to support the Chamber in its activities and events.

Additional Firm Membership Php 5,250

This membership is available to any employee of a firm member residing in the Philippines who wish to be recognized as an official member of the Chamber.

*A- Annual Revenue of US$ 5 million and above B - Annual Revenue of US$ 4.9 million and below

For queries please contact AmCham’s Membership Manager.Email: victoria@amchamphilippines.com / Tel: (+632) 8818 7911 loc. 207

AmCham Philippines | July 2021 1312 | AmCham Chapters & Advocacies

AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES, INC.(North Luzon Chapter - 2015)

DR. FRANCISCO VILLANUEVA Clark Development CorporationPresident

JOAN SABROSOChapter Office Manager

Claro M. Recto Highway, Clark Freeport ZoneMabalacat City, Pampanga 2010Telefax: (632) 8811 3081 • Mobile: +63 (927) 912 3248Email: joan@amchamphilippines.com

AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES, INC.(Visayas Chapter - 1987)

BRIAN CONNELLYMarco Polo Plaza CebuPresident

BRENDA LISENChapter Office Manager

RUTHCEL ARAGONChapter Marketing Manager

Unit 303, Clotilde Commercial CenterM.L. Quezon Street, Casuntingan, Mandaue City 6014Tel.: +63 (32) 316 1093 • Fax: (032) 232 2373Mobile: +63 (917) 323 1972Emails: cebuamcham@yahoo.combrenda@amchamphilippines.comruthcel@amchamphilippines.comWebsite: www.amchamvisayas.com

AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES, INC.(Mindanao Chapter - 1988)

LUIS BONGUYANIndividual MemberPresident

ANNIE QUITAYChapter Office Manager

2nd Floor, Door 207-208, Don Cesareo, Villa-Abrille BuildingJacinto corner Juan Luna Street, Davao City 8000Mobile: +63 (916) 876 7729Emails: amcham.mindanao@gmail.comannie@amchamphilippines.com

AMERICAN CHAMBER FOUNDATION PHILIPPINES, INC.(Founded 1985)

EDWIN FEISTAdvanced Nutrition TechnologyPresident

16th Floor, Sagittarius Conominium111 H.V. Dela Costa, Salcedo Village, Makati City 1227Trunkline: (632) 8816 3716 • Directline: (632) 8867 2426E-mail: amchamfdn@amchamphilippines.comWebsite: www.amchamfoundation.com

FILIPINO-AMERICAN MEMORIAL ENDOWMENT, INC.(Founded 1986)

LT. COL. ARTEMIO MATIBAGPresident

LESLIE ANN MURRAYTrustee

DIVINA COMBESCoordinator

c/o The American Chamber of Commerce of the Philippines, Inc.2nd Floor, Corinthian Plaza Building, 121 Paseo de Roxascorner Gamboa Street, Legazpi Village, Makati City 1229C.P.O. Box 2562, Makati City, 1265Tels.: (632) 8818 7911 to 13 • Fax: (632) 8811 3081Email: fame@amchamphilippines.comWebsite: www.filipino-americanmemorials.org

AMERICAN DESK AT THE BOARD OF INVESTMENTS(Established 1992)

EBB HINCHLIFFEDirector

MC BENSALAmerican Desk Specialist

385 Sen. Gil Puyat Avenue, Makati CityTels.: (632) 8895 8851; 895 3918 • Fax: (632) 8896 2315Emails: mc@amchamphilippines.comamdesk@amchamphilippines.com

14 | Header 15AmCham Committees | 4 | Header

GET INFORMED. BE INVOLVED.STAY CONNECTED.

AMCHAM COMMITTEESYOUR MAIN ALLY

MARKETING OPPORTUNITIESPromote your brand among top executives and business movers via email blast and advertising on the AmCham Business Journal.

ADVOCACYAmCham works closely with the Philippine Government to address business issues on your behalf.

INFORMATIONStay up to date with the latest business and economic issues by engaging in meetings year-round.

NETWORKING OPPORTUNITIESTap into AmCham’s solid network of over 700 members in the Philippines and abroad. Take advantage to meet and exchange ideas with industry leaders and key business personalities.

Join the AmChamCommittee Network today!For further information, you may contact us at (632) 8818 7911 loc. 226

/AmCham.Philippines

@AmChamPH

in/amchamphilippines/

www.amchamphilippines.com

INDUSTRY Chair INDUSTRY DEVELOPMENT SPECIALIST

Agribusiness Atty. Mel Hernandez / Chris Ilagan Josie Caspe

Education Terry Farris Lia Daus

Energy & Power Frank Thiel Mark Rabago

Environment and Urban Development Arch. Jun Palafox, Jr. Josie Caspe

Financial Services, Taxes & Tariffs Atty. Jules Riego / Rombit Co Jeanne Moreno

Healthcare and Wellness Donald Felbaum / Jaeger Tanco Lia Daus

Human Capital & Resources Ernie Cecilia / Grace Sorongon Lia Daus

Information & Communications Technology Donald Felbaum Jeanne Moreno

Infrastructure & Logistics Jaime Faustino / Garrick Thompson Mark Rabago

Intellectual Property Rights Atty. Divina P.V. Ilas-Panganiban, LL.M.Atty. Princess Ascalon

Jeanne Moreno

Legislative John D. Forbes / Atty. Elaine Collado Mark Rabago

Manufacturing Dan Lachica / Chris Ilagan Mark Rabago

Pharmaceutical Rose Lauren Mariano Lia Daus

Professional Women of AmCham Atty. Melanie LageraAtty. Chel Ramirez-dela Cruz

Jeanne Moreno

Security & Disaster Resources Group Simoun Ung / Pete Troilo Lia Daus

Sustainability Atty. Mimi Malvar / Mardie C. Torres Josie Caspe

Tourism & Hospitality Dorothy Drysdale / Anna Liza Vergara Jeanne Moreno

Trade & Investment Mario Biscocho / Douglas Fowler Mark Rabago

Young Professionals of AmCham Atty. Paolo Villonco / Paolo Abellanosa Josie Caspe

Internal CHAIR CONTACT

Membership Roland dela Cruz / Cesar Ginete Vicky San Juan-CoChet Guevara

Kapihan Ebb Hinchliffe / Leslie Ann Murray Bernice Ermac

Networking / General Membership Meetings Ebb Hinchliffe Bernice Ermac

Communications & PublicationsErnie Cecilia

Chi PeñaLeslie Ann MurrayKeith Sigua

Corporate & Associate Partners Ebb Hinchliffe Donna Marcelo

AmCham Center for Training and Development (ACTDev)

Ebb Hinchliffe Mc Bensal

A C T I V I T I E S / A D V O CA CY / A F F I L I AT E C H A I R C O N TA C T

Business Leadership Program (BLP) Jun Salipsip / David Caldwell Pinky Jamili

Filipino-American Memorial Endowment (FAME)

Lt.Col. Art MatibagLeslie Ann Murray

Divina Combes

The Arangkada Philippines Project (TAPP II) John D. Forbes Mark Rabago

Washington Relations / AmChams of Asia-Pacific (AAP)

Ebb HinchliffeRick SantosGeorge Drysdale

Divina Combes

AmCham Philippines | July 2021 1716

JULY AUGUSTWilliam M. Valtos, Jr. 1

Trevor Neilson 2

Anna Claudine David 3

John Patrick Y. Chan Anton Mari G. Perdices 4

Richard Azures

Emmanuel Pineda Jose Docdocil III 5

Rony Ng

Michael Zolin 8

Trixie L. Whyte Mina Lim 10

Jochen Bitzer 11

Eugene Yap 12

Miguel Antonio Garcia 13

Manuel V. Pangilinan 14

Danilo R. Deen 15

James Lee 16

Ramon Zandueta 17

Brian Connelly 19

Mia Faye Singson-Leon 20

Joseph Homer Macapagal

Edwin Ngo 21

Apolinar I. Navarro 22

Ma. Cristina G. Coronel 24

Evelyn Yumul Lucille A. Colina 29

Ira Jon Kiener

Donald Felbaum 30

Angkico, Josie 1

Limbo, Ferdinand A. A. 2

De Leon, Cristina D. Seña, Edwin 5

Machica, Michael 6

Thiel, Frank 7

Yu, Gregorio T. Coyiuto, Peter G. 9

Catane, Ireen 10

Spakowski, Walter Caesar

Nana, Emmanuel Salvador

13

Aquende, Henry B.Ramos-Jones, Sam

Cruz, MarloEmmanuel Aladin D. Tumanda

14

Gonzalez, Josephine 15

Jose Francisco Lucci, Guillaume 17

Ten, Willy Tee Jagga, Amit 19

Veloso, Ma. Theresa 20

Winton, Bruce Ruiz, Maria Vivian 21

Mascenon, Ernesto 22

Garon, Robert M. 26

Chaffee, Douglas 27

Delgado, Janette (Jann) 28

SEPTEMBER

Bernas, Joanna Narvacan, Derick 1

Nakagawa, Kazuya 2

Toze, David Ortola, Andres 4

Tolosa-lerma, Aileen Sarah Riego, Jules E. 6

Williams CPP, Jeffrey A. 7

Du-Baladad, Benedicta Fleras, Jomar

Batuhan, Allan 9

Saporsantos Jr., Napoleon L.

Dustin Onghanseng 10

Pascual, Raymund M. 11

Yang, George T. 12

Lietz, Rudolf Johannes Hermann

13

Angeles, Raymond Sinha, Anshum 14

Mabatid, Lope 15

Drysdale, George 16

Carado II, Carlos Acesor, Steve 17

Clement III, Carlos “Charlie” S.Dearing, Wayne

Tanco, Joseph Augustin 18

Reyes, Paul Jason Toth, Elek Christopher 20

Tiongson, Rolando 21

Villonco, Rolando Mario G. Dan Wolbert 22

Romero, Gella 23

Donovan, James del Sol, Romil Rayos 25

Rivera, Paul 27

Kaufman, Eric 28

Raghu Krishnan William Lee O’Brian 29

Angeles, Nico Somera Jr., Bienvenido I. 30

| Members' Birthdays

NEW AMCHAM MEMBERS

B/E Aerospace B.V. Jose Palaganas Associate Director New member

PF OFG Philippines, Inc. (A Viatris Company) Ester Tacanay Country Manager New member

Minitab Hong Kong Limited Selina Lau Area Marketing Manager New member

NATIONAL CAPITAL REGION

Jocson College, Inc. Leigh Jocson Vice President New member

NORTH LUZON CHAPTER

Converge ICT Solutions, Inc. John Rhey Herrero

Key Accounts Manager - Cebu Primary Representative

JM Ceniza-Sequihod

Marketing Services Officer - Visayas Additional Member

VISAYAS

18 | Cover Story AmCham Philippines | July 2021 19

One of the government’s main objectives is to guarantee safe, stable, and usable money. Does Bitcoin, the top cryptocurrency in the world, provide such? Warren Buffett never budged from his intrinsic, long-term viewpoint regarding investment in stocks. His portfolio management is among the best in the world, but he is a Bitcoin non-believer. Another skeptic is Luke Ellis, CEO of the world’s largest publicly traded hedge fund, MAN Group PLC of London. He belittles Bitcoin as just a pure trading instrument and not an asset management product, having no inherent value. International banking officials view cryptos like Bitcoin as speculative assets and not sustainable, usable money. A Federal Reserve paper describes them as the latest “mom and pop cottage industry” with some 8,000 of them now established. Is the proliferation of these do-it-yourself digital currencies lending themselves to global financial stability?

Drumbeaters postulate that low interest rates, inflation, and the risk that the banking system is being eroded by sour assets due to the recession will allegedly dim the luster of fiat money. A Financial Times essay, however, dismissively said that the risks and chaos of a wild world of unstable money is a “libertarian fantasy.” After all, the US dollar, Japanese yen, Chinese renminbi, and euro are solidly backed by their respective treasuries. What is Bitcoin’s backbone?

Its inherent instability is reflected in its own wild price volatility. Elon Musk’s grandiose announcement early this year that Tesla will accept Bitcoin as payment drove the value to over $60,000, only to be cut in half when Musk withdrew support by citing the grave environmental damage of crypto mining. Recently, a rumor of an alleged Amazon search for a digital currency manager shot Bitcoin to over $40,000 – only to go down 10% after Amazon’s official denial.

The Rise ofDigitalCurrenciesBy Zoilo Dejaresco III

The International Monetary Fund is most concerned with managing the risks these cryptos bring, without being blind about their beneficial uses. China, on the other hand, is establishing its own digital currency and looking at banning cryptos as it tries to shield its population from high risk investments. About 80 countries are now in various stages of establishing their own CBDCs (Central Bank Digital Currencies) with the view of transparency and monitoring of payments. These include the four largest central banks in the world: the European CB, the Bank of England, the Bank of Japan, and the US Federal Reserve. Will they collectively, thereafter, ban other cryptos once their own digital currencies gain footings? What happens then to Bitcoin?

Stricter regulations of cryptos are almost certain. According to CNBC, Binance CEO Changpeng Zhao will step down soon once the company becomes a regulated financial institution. Binance is the biggest global Bitcoin exchange in terms of volume. Meanwhile, The Guardian reported that the UK could face severe losses resulting from “businesses that accept payment in untaxed and untraceable cryptocurrencies going bust.” Untraceable payments are often attractive to cybercriminals, money launderers, and ransomware hackers.

image: Freepik.com

AmCham Philippines | July 2021 2120 | Cover Story

Bitcoin as a pervasive form of usable money could be many years away. Even those primarily behind the rise of the Bitcoin prices to $60,000 seem not yet prepared for that eventuality. Yahoo Finance reports that in a July 2021 US survey, 89% of Americans were aware of Bitcoin but 57% would not invest in it and 67% do not see it becoming useful for everyday use.

Even Musk admits that his view of Bitcoin is long-term in perspective, although he sees an improvement in the gradual “greening” of the crypto mining operation. He continues to hold $1.3 billion in Bitcoins, but how long exactly does he mean by “long-term” is the crux of the matter.

In the short term, an explosion in the COVID-19 Delta variant – causing more severe lockdowns globally – could precipitate a worldwide crash for a system already debilitated by a year-long absence of vaccines that had earlier put many economies to a suffering halt. In that case, the first to be disposed of in the ensuing panic would be high-risk investments, of which cryptos definitely are.

An online Bitcoin watcher boldly predicted that such a worst-case scenario could drop Bitcoin to the

$20,000 level which was the highest rate during its first bull market. But he believes the price would not go lower than $5000, otherwise Bitcoin mining will no longer be profitable.

Conversely, the fantasy rate of $400,000 will never happen. According to the same crypto investor, this is the rate where half of the world is assumed to join the nation of El Salvador in making Bitcoin a legal tender, which most likely will not happen either. He says the range of $100,000 to $200,000 is more feasible, if the US Bitcoin ETF is approved, which is still a very iffy situation.

To be judicious, most investment advisers point to a mere 3% allocation of one’s investment portfolio to Bitcoin – and to treat it as a long-term affair. But due to its extreme volatility, there could also be opportunities in Bitcoin’s price ebbs and flows. Just don’t be late for the train though.

Is this the proliferation of these do-it-yourself digital currencies lending themselves to global financial stability?

image: Freepik.com

Zoilo Dejaresco III is a former banker turned financial consultant, media practitioner, and book author. He is a Life Member of the Financial Executives Institute of the Philippines (FINEX) and serves as columnist in the FINEX Digest, Manila Bulletin, and Business Mirror.

AmCham Philippines | July 2021 2322 | Feature

On July 6, 2021, I attended a webinar organized by AmCham Philippines entitled HR Leaders’ Perspectives on Hybrid Work Model Evolution. It was moderated by Ms. Vandana Aiyer, Regional Account Manager at Crown World Mobility. The panelists consisted of Ms. Maria Eloisa Jacinto, Head of Global Total Rewards at Jollibee Group; Mr. Andrew Candelet, General Manager at International SOS (Philippines), Inc.; and Mr. Mir Awal Khademur Rahman, Head of People at Ericsson Singapore, Brunei and the Philippines.

The webinar aimed to discuss the following:

• Past and current organization approach to “remote working” or “working from anywhere”• Policies on virtual assignment and remote working• Future of returning to the office

Ms. Maria Eloisa Jacinto mentioned that at Jollibee, front liners have to go back to the store. Their HR has reassured that highest levels of protocols were being observed by both employees and customers. For their employees, they provided shuttle services, face masks, face shields and alcohol. A technical team was formed to ensure that protective gears are providing protection against the elements.

Regular health checks are being conducted to monitor the wellness of employees. Likewise, weekly wellness talks are organized to encourage employees to avail of the program. Sick employees are also being monitored and taken care of with the help of their HMO provider. Communication has been vital in all these endeavors.

With store operations limited to 30–50% capacity, work arrangements were affected and there was a change in focus from dine-in to delivery and

takeout, and restructured operations to maximize the new normal. They plan to bring people back to the office by January 2022, with 1 to 2 days working from home.

In Ericsson, according to Mr. Mir Awal Khademur Rahman, they provided both Globe and Smart services to ensure seamless operations of their service centers in the Philippines while employees are working from home. Being a global company, they learned from the operations in other countries. They also empowered their employees to make decisions in relation to the challenges they encounter when they cannot travel due to border restrictions. They make sure that employees are taken care of all the time.

During the pandemic, working from home at International SOS (Philippines), Inc., was extremely challenging. They provided adequate health and safety infrastructure to promote mental health to employees who felt isolated and stressed, as they worried about the pandemic as well as their job security. They provided COVID testing and support in other matters for their employees and domestic clients. Likewise, they provided access to verified information related to COVID, 24/7 support and telehealth in 33 countries, 24/7 emotional support through counseling, digital tools and e-learning on staying healthy and stress management, onsite clinic management and other digital solutions.

be divided into groups such as Team A and Team B. Essential staff will be required to report to the office.

In Jollibee, they ensure everyone is provided with the right skills and security through regular communication enabled by an online platform, which also allows time to sit down and listen to employees.

Ms. Aiyer summarized that the hybrid work arrangement must center on the mental health and well-being of the employees. It is essential to prepare managers to manage the productivity of team members and empower them to understand the vaccination program.

All panelists said they did not see a drop in productivity that impacted the business during the pandemic when the workforce was working from home, in response to a question raised by Ms. Vandana Aiyer.

According to Mr. Mir Awal Khademur Rahman, Ericsson already had an option for working from home since 2015. With the global mobility, people are used to the new normal and are ready to work remotely. The option to work remotely follows local regulations.For the Hybrid Working Model, they conducted a survey every six months that yielded the result that 60% of employees prefer working from home.

At International SOS (Philippines), Inc., employees on foreign assignment were given COVID support by exempting them from quarantine. Measures to protect the office environment varies from one location to another. Following health protocols, employees will

By Cleo Quiblat Cleo Quiblat is a Recruitment Consultant from Professional Staffers, a Division of John Clements Consultants, Inc. She enjoys cooking and gardening.

HR Leaders Perspective onHybrid Work Model Evolution

image: Freepik.com

AmCham Philippines | July 2021 2524 | Feature

Redefining Philippine Taxation: CREATESUITS THE C-SUITEBy Karen Mae L. Calam and Aiza P. Giltendez

Final of four parts

The first-ever revenue-eroding tax reform package and the largest economic stimulus program in the country’s history, Republic Act No. 11534, or the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE), provides for major amendments to our tax and incentives laws. These changes are enacted with the goal of helping businesses move into post-pandemic recovery while encouraging more foreign investment. The law took effect on April 11.

The first and second parts of this four-part article discussed the passage and goals of the CREATE Act, as well as the exemption of foreign-sourced dividends, the repeal of improperly accumulated earnings tax, tax-free exchange, additional provisions to consider and provisions that were vetoed.In the third part last week, we covered the nature of incentives before CREATE, their centralization and administration, and how they become performance-based and targeted. In this fourth and final part, we cover the periods of availment and the kind of incentives registeredenterprises may enjoy.

PERIOD OF INCENTIVESWith the intention to make incentives time-bound to encourage growth, CREATE no longer accords registered business enterprises (RBEs) incentives in perpetuity.

Qualified export enterprises may be eligible for a four to seven-year income tax holiday (ITH), followed by either 10 years of 5% special corporate income tax

(SCIT) on gross income earned (GIE) or 10 years of enhanced deductions (ED).

On the other hand, qualified domestic market enterprises (DMEs) may be eligible for a four to seven-year ITH followed by five years of ED.

As for DMEs, the grant of 5% SCIT incentives was vetoed since the same, according to the President, is redundant, unnecessary, and weakens the fiscal incentives system. If the government is to grant 5% SCIT to registered DMEs, then homegrown firms that are not registered, and make up most of the country’s micro, small and medium enterprises (MSMEs), will have to pay more taxes than registered DMEs. In the process, registered DMEs will have more legroom to reduce prices and secure more contracts, ultimately taking overthe market and potentially threatening to putMSMEs out of business.

An additional two years of ITH will be given to projects or activities of RBEs located in areas recovering from armed conflict or a major disaster.

An additional three years of ITH will also be given to projects or activities registered prior to the effectivity of the CREATE Act that will, in the duration of their incentives, completely relocate from the NCR.

In the interest of national economic development and upon positive recommendation of the FIRB, the President can approve extraordinary incentives for up to 40 years, where the ITH does not exceed eight years, followed by a 5% SCIT.

Photo by Mari Gimenez on Unsplash

AmCham Philippines | July 2021 2726 | Feature

The modified set of incentives or financial support package favors projects with comprehensive sustainable development plans, complying with set minimum investment capital or minimum local employment generation, among other conditions.

The flexibility and range of authority conferred to the President in granting incentives is not new. ASEAN neighbors like Malaysia, Indonesia, Thailand, and Vietnam have been exercising a similarlevel of discretion in granting incentives toboost their attractiveness and achieve theireconomic objectives.

KINDS OF INCENTIVESIn computing the taxes due, the 5% SCIT is based on GIE, in lieu of all national and local taxes, just like the old 5% GIT. Nevertheless, the allowable deductions for purposes of computing the GIE must be clarified in the IRR to be promulgated by the DoF after consultations with the IPAs and other government agencies.

Pre-CREATE, the issue on whether the enumeration of direct costs for purposes of GIE computation is exclusive or not has been the subject of various cases brought before the BIR and the courts. For PEZA-registered entities, the issue has finally been settled by the Supreme Court (SC) in the case of Commissioner of Internal Revenue vs. East Asia Utilities Corp. (G.R. 225266, Nov. 16, 2020) wherein the SC confirmed the non-exclusivity of the list of allowable deductions for purposes of computing PEZA-registered enterprises’ 5% GIT. This pronouncement by the SC on the proper interpretation of the allowable deductions for GIE computation, when articulated in the IRR, will, it is hoped, provide clear direction for the guidance of the implementing agencies and taxpayers alike.

Meanwhile, at the regular CIT rate, registered enterprises may claim enhanced deductions that are expected to cushion the income tax effect. These enhanced deductions are: additional depreciation allowance of 10% for buildings and 20% for machinery and equipment; additional 50% direct labor expense; additional 100% research and development cost; additional 100% training expense; additional 50% domestic inputs expense; additional 50% power expense; a deduction of a maximum of 50% of the reinvested undistributed profits or surplus (for those in the manufacturing industry); and an enhanced Net Operating Loss Carry Over (NOLCO) of five years following the year of loss (incurred during the first three years from the start of commercial operations).In addition to the above incentives, all registered enterprises may enjoy duty exemption on the importation of capital equipment, raw materials, spare parts, or accessories directly and exclusively used in the registered project or activity. Registered enterprises may also enjoy VAT exemption on importation and VAT zero-rating on local purchases of goods and services directly and exclusively used in the registered project or activities.

INCENTIVES SUNSET PROVISIONTo give IPA-registered enterprises ample time to adjust to the new incentives, RBEs with incentives granted prior to the effectivity of the Act are given a transitory period.

Existing registered activities granted only an ITH will be permitted to continue the remaining ITH period.

On the other hand, existing registered activities granted either an ITH and 5% gross income tax (GIT), or are currently receiving the 5% GIT, will be able to enjoy a 10-year 5% GIT. After the expiration of such 10-year 5% GIT transition period, existing registered export enterprises may reapply and enjoy the SCIT for 10 years, subject to certain conditions and performance reviews, and without further extension.

The provision allowing export enterprises to further extend the 10-year SCIT has been vetoed by the President.

Notably, unlike in the CITIRA Bill where existing RBEs were given the option to shift to the new tax incentives regime by surrendering their Certificate of Registration instead of availing of the sunset period, such a provision is wanting in the CREATE Act.

With the passage of CREATE, provisions of the prior laws to the extent inconsistent with CREATE are repealed or amended.

While fiscal incentives are not the only determinant for the country to attract investment, adjusting corporate taxes and modernizing fiscal incentives serve as a means for the country to remain competitive with its ASEAN neighbors. Redefining our taxation puts it in a better position to compete for investments and CREATE a better economic future for the Philippines.

Acknowledgements

Karen Mae L. Calam-Ibañez And Aiza P. Giltendez are a Tax Senior Manager and Manager, respectively, of SGV & Co.

This is the fourth in a series of four articles on CREATE, reprinted with permission.

This article was originally published by Business World in its Suits The C-Suite column. Our sincere thanks to the authors for allowing us to reprint this series for the benefit of our members.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the authors and do not necessarily represent the views of SGV & Co.

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AmCham Philippines | July 2021 2928 | Company News

Preventive vs. CorrectiveCareer Management:Tactics to Improve Organizational PerformanceBy Caroline Pfeiffer

It was a stark reminder of the importance of preventative measures.

In September 2020, the Global Preparedness Monitoring Board, a group created by the World Bank and the World Health Organization, released a study that argued an investment of just $5 per person in global health infrastructure could largely prevent the next pandemic from bringing the world to its collective knees.

These people know what they are talking about. This is the same organization that in September 2019 – just 90 days before China formally identified a new pneumonia-like virus – warned the world that we had failed to prepare for a global pandemic that would lead to “widespread havoc, instability and insecurity. The world is not prepared.”

After more than a year suffering under the suffocating presence of COVID-19, we can certainly see the wisdom in the GPMB’s admonitions. The world did not have the strategies, supply chains or

medical equipment and supplies to weather the pandemic storm.

The very same scenario we have faced in the pandemic is bearing down upon us when it comes to the future of work.

For many years now, the best and brightest thinkers in economics and human resources have been warning us that we need massive investments in transformational business strategies, including re/upskilling of millions of workers who are about to see their jobs disappear as AI-powered machines assume a bigger role in the business world.

There are a few countries and organizations that have adopted a preventative approach. They are adopting new technologies to replace low-skill tasks and then reskilling their people to perform new, higher skill roles.

But clearly, far too many of us are ignoring an impending crisis, ready to apply corrective measures to problems that could have been prevented with a little advanced planning.

THE FUTURE OF WORK PREPAREDNESS GAP?How big is the gap between current skills and future skills needed to build more productive, more sustainable careers? Two different sets of numbers from the World Economic Forum describe in graphic detail what current pressures are being applied and the rewards we may accrue if we start acting now.

The first number is alarming and, for many of us, rather depressing: by 2025, the WEF estimates that half of all work currently performed in the world will be done by machines, and that more than four in 10 companies it surveyed plan to reduce their human workforces as they adopt technology to automate manual tasks.

Then, we have the second and perhaps more encouraging number from the WEF: wide scale investment in re/upskilling has the potential to boost global GDP by three

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“Unless we… find ways of transitioning workers from outmoded jobs into the jobs of the future – millions of the world’s working people, and their employers, will get steamrolled by technology.”

Photo by fauxels from Pexels

percent or $6.5 trillion by 2030. The growth in economic activity will come from transitioning people out of jobs being assumed by machines

AmCham Philippines | July 2021 3130 | Company News 31

and training them for a new generation of jobs, many of which will involve creating, supporting and managing all that new technology.

We have a challenge, but we also have an opportunity. Unfortunately, not enough companies are rising to that challenge and offering the reskilling or upskilling opportunities that their workers demand.

Survey data shows that notwithstanding the enhanced focus on reskilling and upskilling, companies are failing to make the proper investments. A 2018 global study by Gartner revealed that only 20 percent of employees have the necessary skills for both their current role and a future job that is more sustainable in the age of AI.

In the past, employers have responded to this kind of gap by firing employees with outdated skills and going out onto the open market to hire new people with a new array of skills.

Unless we change this equation – and find ways of transitioning workers from outmoded jobs into the jobs of the future – millions of the world’s working people, and their employers, will get steamrolled by technology.

A PREVENTATIVE – RATHER THAN CORRECTIVE – APPROACH TO WORKFORCE MANAGEMENTThe biggest challenge for companies facing the future work preparedness gap is figuring out where to start. Between the challenge of adopting new technologies and finding the people with the right skills to work in that new environment, it can be difficult to plot a preventative course. In many instances, we don’t know what the solutions are because we’re not quite sure what kind of problems we’re facing.

There are three questions organizations should ask themselves to determine the size and scope of the future skills gap, and whether there is still time to apply preventative measures.

1. Have you identified the jobs of the future and the skills needed to fill them?

Many companies are focused intently on the adoption of new technologies, but spend little time identifying the people they will need in these roles. For example, Faethm, a global leader in workforce analytics, has identified 32 skills and capabilities needed to fill the most common future jobs. If you haven’t taken the time to identify future roles and the skills needed to fill them, then you’re going to be one step behind in your talent management strategy.

2. How well do you know your workers?

Far too many organizations overlook redeployment opportunities because they suffer from a profound knowledge deficit when it comes to the skill profile of their current employees. As difficult as it is to believe, these organizations don’t have a clear picture of the existing skills of their employees or their preferred career aspirations and thus, have no idea which ones have transitional or transferable skills that would allow them, with some focused learning opportunities, to transition into different roles within the company. Performing a detailed skills assessment that includes an opportunity for employees to identify future career paths is essential to closing the preparedness gap.

3. Do you have a learning strategy to fill the jobs of the future?

To get as much value out of existing employees, organizations need an effective learning strategy that combines career-focused reskilling opportunities that are connected directly with future employment opportunities. In other words, organizations need to open the door to learning with the understanding that on the other side, there is a rewarding and sustainable job that will be future proofed going forward.

These strategies are very broad and can contain within them many sub-strategies and tasks that should not be overlooked. However, if these proactive, preventative strategies are embraced now, rather than waiting to implement reactive corrective measures later, the future skills crunch won’t overtake your workforce strategy, and can effectively prepare an organization for the future of work.

Photo by Dayne Topkin on Unsplash

AmCham Philippines | July 2021 3332 | Cover Story

DEMOCRATIZING FINANCE:Bataan Goes Global

Mariveles is a first-class municipality at the southern tip of Bataan Peninsula. This picturesque coastal town, adjacent to Manila Bay and the West Philippine Sea, is the site of the Freeport Area of Bataan (FAB), a special economic zone with the fastest growing freeport in the Philippines.

As the country’s only freeport that allows investors to own real property, FAB offers the best incentives to investors, including an income tax holiday (ITH) from four to eight years; 5% tax in lieu of local and national taxes after the ITH period; duty-free importation of capital equipment, raw materials, consumer goods, and personal items; domestic sales allowance of up to 30% of total sales; exemption from wharfage dues, export taxes, impost, and fees; plus a special investor’s visa.

According to the Authority of the Freeport Area of Bataan (AFAB), there are 98 active locators in the country’s first ecozone, which was originally created

as the Bataan Export Processing Zone (BEPZ) in 1969 by virtue of Republic Act (RA) 5490. In 2009, Congress passed RA 9728 converting BEPZ into FAB, with governing authority being the AFAB – an investment promotion agency that posted the fastest growth rate from 2012 to 2016.

July 7, 2021 was an auspicious day for iWave Advanced Research Group Inc. (iWar), a subsidiary of Filipino-Japanese venture iWave Inc. On that date, iWar launched the Global Trade Exchange (GTX) at the AFAB auditorium. iWar is FAB’s first financial technology (fintech) registrant after AFAB opened its doors this year to fintech companies using blockchain distributed ledgers or other emerging digital technologies.

GTX is a unique platform that enables cross-border trade and exchange of all classes of digital assets such as cryptocurrencies and non-fungible tokens between and among international investors as

well as offshore market players. Its objective is to facilitate the migration and exchange of tokenized value, thereby bridging the gap between traditional and digital asset spaces.

In November 2020, AFAB granted GTX an exclusive eight-year license followed by a perpetual license to operate a digital asset exchange that enables trading in cryptocurrencies, such as Bitcoin and Ethereum. It enables legacy systems to connect and trade across jurisdictions while maintaining the sovereignty of the underlying traded asset. At the same time, it addresses structural problems inherent in traditional exchanges leveraging on various tech platforms and protocols.

AFAB Chairman Pablo Gancayco said the GTX ties in with FAB’s rich history of pioneering efforts as the latest manifestation of that spirit of innovation that brings Bataan and the Philippines into the future. AFAB Administrator Emmanuel Pineda outlined the ecozone’s partner selection process and invited locators to invest in FAB, highlighting the unprecedented mandate of GTX’s decentralized exchange. Congressman Jose Enrique Garcia III of Bataan’s 2nd District lauded the timely passage of RA 11453 that introduced changes to AFAB’s charter and enables it to create a comprehensive ecozone package for investors who will gain access to global capital, credit, and liquidity. He pointed out that in light of the COVID-19 pandemic, the call for digital transformation in business has become even more pervasive.

During the bell-ringing ceremony at AFAB’s world-class auditorium, iWave President and CEO Ramon Garcia Jr. announced that GTX has a $2.9 billion pipeline of fresh capital to be raised from the international markets. Issuers will come from multiple sectors including financial services, clean energy, defense technologies, agritech, and production of electronic batteries for e-vehicles.

According to Bataan Governor Albert Garcia, the opening of the GTX integrates with the grand vision for the province of Bataan as a catalyst for innovation and development. The 100-year provincial master plan is strategic for the country’s economy, especially with the construction of the Bataan-Cavite Interlink Bridge (BatCav) scheduled for groundbreaking in the first quarter of 2022.

Otherwise known as the Manila Bay Bridge, BatCav is a 32.15-kilometer, four-lane span that will connect Mariveles with the municipality of Naic in Cavite province. Commuters and cargo vehicles between Central Luzon and Calabarzon regions need not pass Metro Manila any more once the bridge is built.Approved by the National Economic and

Development Authority in 2020 with a budget of P175.7 billion and funding support from the Asian Development Bank, BatCav is projected for completion by 2026. Last year, the Department of Public Works and Highways signed a $59 million contract for BatCav’s engineering design that was awarded to US-based T.Y. Lin International and South Korea’s Pyunghwa Engineering Consultants Ltd. working in tandem with Renardet S.A. of Switzerland and DCCD Engineering Corp. of the Philippines.

Jose Luis Yulo, President of the Chamber of Commerce of the Philippine Islands, remarked that from hereon, the province should no longer be referenced using the “Fall of Bataan” but instead must be tagged as the “Rise of Bataan.” Famous for its crucial role in the Pacific arena during World War II along with neighboring Corregidor Island, historic Bataan province shall now take its place on the global stage – with FAB leading the way in the digital sphere.

J. Albert Gamboa is CFO of Asian Center for Legal Excellence, Director of Long Beach-Bacolod Association, and Chairman of FINEX Golden Jubilee Book Project. He is also a columnist of Business World, Manila Bulletin, and Manila Times

Photo: Bataan Brass Bell

34 | AmCham Philippines

Statement by U.S. President Joe Bidenand AmCham Philippines on thePassing of Former Philippine President Benigno Aquino III

I extend my deepest condolences to the people of the Philippines on the death of former President Benigno “Noynoy” Aquino III. He was a valued friend and partner to the United States, and he will long be remembered for serving his country with integrity and selfless dedication. President Aquino’s steadfast commitment to advancing peace, upholding the rule of law, and driving economic growth for all Filipinos, while taking bold steps to promote the rules-based international order, leaves a remarkable legacy at home and abroad that will endure for years to come. I greatly valued our time working together, and I extend my heartfelt sympathies to his family and to all who will mourn his absence.”

- President Joe Biden

The American Chamber of Commerce of the Philippines wishes to express its deepest regret on the passing of former president Benigno S. Aquino III at too young an age. Like his parents, he sacrificed a comfortable life in the private sector for the many challenges and demands of national service. He did not seek the highest office, but destiny placed him there, and his thoughtful, humble, and effective leadership of an at times tumultuous democracy shown in all his actions. History will record his contributions to social, economic, foreign, and other policies, too many to describe today. We convey the sincerest condolences of our directors, members, and employees to the family of the late president.

- AmCham Philippines

AmCham Philippines | July 2021 35

image: citypng.com image: Ryan Lim/Malacanang Photo Bureau

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AmCham Philippines | July 2021 37

Give a P100 bill to a five-year old kid, and see what he/she does with it. Give P10,000 to a 15-year old teenager, and observe. Give P100,000 to a 25-year old working parent, and see what he/she does. I think we’re thinking about the same things that people do with their money – SSS or Spend, Shop, and Self-Gratification.

In most homes, it’s taboo to talk about money (or lack of it) with the children, especially during meals. In schools, you don’t teach about money unless the collegiate subject is Economics or Finance – and the context is how to manage corporate finance, not personal finances. I’ve been advocating that and friends during the first payday. As employees, they get entitled to loans. They want a car, and get a mortgage. They get married, and get more loans to impress the in-laws and hundreds of guests. They get a house, and get another mortgage. They

36 | Business of Business

Financial Literacy:A Life Skill That Schools Don’t Teach

send the kids to school, and get educational loans every enrollment time. As the family grows bigger, the loans and mortgages get even bigger. Many are lucky to get their retirement pay intact and free from deductions for mortgage payments.

After retirement, some go into business, without business skills or skills to take care of their money. Eight of ten welders, electricians or office staff can end up bankrupt in businesses after retirement. You don’t become an entrepreneur after 40 years as a salaried employee just because you have a retirement pay as capital to start a business. You need a different set of skills, and a clear understanding of money and how to make it grow.

UNDERSTANDING MONEY

Money is basically a medium of exchange. To make the most of it, you must excel in four aspects: earning, saving, spending, and investing.

Sadly, many so-called financial literacy seminars focus simply on investing. Some financial institutions run seminars to encourage you to invest your money with them. All right, you must invest so that you can have financial independence in the long term. But first you need to understand how to maximize your capacity to earn money, save a lot, and spend money wisely.

I often say in my seminars, “… the key to creating unlimited wealth and abundance is the free and unhampered expression of unique talents to create value that others are willing to pay for… and it all starts in the mind.”

Positive thoughts create positive results. What your mind can conceive, you can create – including wealth. By increasing the quality of your thoughts, you can increase your capacity to earn. Conversely, negative thoughts, doubts, fears and apprehensions tend to paralyze or immobilize you in your efforts to earn more money, save amply, spend wisely, and invest for the future.

By Ernie Cecilia, DPM

Photo by Karolina Grabowska from Pexels

EARNING

All wealth is created by the mind. You earn money by using your talent and imagination to produce something of value that others are willing to pay you for. Here are some tips on how to earn more:

• Your earnings depend on the value that you create with your products or services.• Having more sources of income increases your chances of making more money. • Working longer hours will give you more money, but not as much as increasing your skills to perform higher-paying jobs. So, continue to re-skill and up-skill yourself. • If you want big money from employment, look for an organization that pays big money, then move up to positions that pay big money.• If you want to go into business, develop the right entrepreneurial skills – they’re different from your skills as an employee.• To earn more in business, grow your business and make it work for you. It’s harder to work for money, and easier to make your money work for you.

SAVING

Barely 5% of Filipinos have real savings. Many people save what is left after spending what they earn, which is a wrong strategy. Consider these savings tips:

• Pay yourself first; save religiously a portion of whatever you earn, no matter how small it is.• Save early in life, as time is on your side.• If you can’t save from your income, save from your expenses.• Have a savings goal and try hard to achieve it. SPENDING You cannot avoid spending. You cannot eat your money or sleep on it. Spend if you have to, but spend wisely. Here are more spending tips:

• You can’t spend what you don’t have. Using credit cards (if you don’t have money) and borrowing for your expenses are mortgaging your future income. • Prioritize your spending by having a budget for needs (not wants) and stick to it.• Don’t spend within your means; spend below your means. • Cutting your expenses to the bone is an anorexic strategy. Provide for basic needs by having a decent income.• Never spend for self-gratification unless you have a farm where money grows on trees.

INVESTING

Having a passive income from your investment/s will lead to financial independence. Here are some tips:

• Leverage your money by investing it, not just saving it.• Investing is not obligatory – don’t invest your grocery money or you’ll starve.• Choose investments carefully – avoid those that will give you sleepless nights worrying if you’ll earn or lose your money.• If an investment scheme sounds too good to be true, it might not be true.

If you bet on a horse, that’s gambling. If you bet that you can make the Ace of Diamonds disappear, that’s entertainment. If you bet on a stock, and the market becomes bullish later, that’s good investing.

Ernie Cecilia, DPM, is a regular contributor to the AmCham Business Journal. Ernie is the chairman of the Human Capital Committee of the American Chamber of Commerce of the Philippines; Co-Chairman of the Employers Confederation of the Philippines’ TWG on Labor Policy and Social Issues; and past president of the People Management Association of the Philippines.

For comments or questions, please e-mail the author at erniececilia@gmail.com.

“ “Don’t spendwithin yourmeans;spend belowyour means.

AmCham Philippines | July 2021 3938 | Cover Story

How President Biden’s Tax Proposals May Impact US Inbound Investments ASEAN companies operating in the US should stay informed of potential changes in the US tax landscape and its impact on their businesses.

On 7 April 2021, the United States (US) Treasury Department released President Joe Biden’s Made in America Tax Plan. According to the report, the plan’s goal is to make American companies and workers more competitive by eliminating incentives to offshore investment, substantially reducing profit shifting, countering tax competition on corporate rates, and providing tax preferences for clean energy production. Importantly, this tax plan would generate new funding to pay for a sustained increase in investments in infrastructure, research, and support for manufacturing, fully paying for the investments in the American Jobs Plan over a 15-year period and continuing to generate revenue on a permanent basis.

As the world’s largest economy and consumer market, the US remains an attractive place for Asean companies seeking global expansions beyond their own neighborhood. This article covers the key provisions of the Biden proposal and provides an overview on how they may impact Asean companies with a US operation or eyeing a US expansion. Despite no specific changes targeting foreign investors, Asean groups with US subsidiaries or US operations should continue to closely monitor any further developments with respect to Biden’s current proposals.

RAISING CORPORATE INCOME TAX RATE

It’s been a long-standing campaign promise that President Biden is looking to raise the federal corporate income tax rate from the current 21% to 28%. This rate does not include any state and

By Russell Aubrey & Michael Xiang

Photo by Karolina Grabowska from Pexels

40 | Cover Story

US parented group from shifting profits from a US related party, and thus multinational groups should review their current US repatriation strategy and transfer pricing framework and adjust accordingly.Further, this proposed regime challenges governments in low-tax jurisdictions that rely on foreign direct investments to find creative alternatives to incentivize US investors other than offering merely a low tax rate.

CONCLUSION

There are also a number of tax proposals introduced by various members of the US Congress in addition to the Biden proposal with various differences but seem to have similar objectives as the Biden proposal. As we expect further details and potential changes to the Biden proposal due to political negotiations, the final legislation may differ from the discussions in this article.

41

local income tax that is in addition to the federal income tax. The President and his administration also believe the prior reduction from 35% was too significant and too far reduced the amount of taxes corporations are paying.

STRENGTHENING THE GLOBAL MINIMUM TAX FOR US MULTINATIONAL CORPORATIONS

The Global Intangible Low-Taxed Income (GILTI) regime was introduced by the Tax Cut and Jobs Act (TCJA) in 2017. In effect, it is a tax on a US taxpayer’s proportion earnings in its controlled foreign corporations (CFCs) that exceed a 10% return on the CFCs’ qualified business asset investment (QBAI). Under the TCJA, GILTI is subject to a tax rate of 10.5% (before 2026) or 13.125% (after 2025) on an annual basis. The foreign tax credit (FTC) is separately tracked and 80% of foreign tax paid is available to offset GILTI (but note that the FTC calculations can be complex and do not always result in a full offset of the 80% of the foreign tax paid).

The Biden proposal seeks to strengthen the current GILTI regime by making the following key changes:• Raise the tax rate from 10.5% or 13.125% to 21%

• Require jurisdiction by jurisdiction calculation of GILTI and utilization of FTC• Remove QBAI from the GILTI formula

In effect, the Biden proposal is seen as introducing a global minimum tax of 21% for all US parented groups.

At first sight, the GILTI regime targets US based multinationals with foreign operations. However, Asean parented groups may still be caught by this rule to the extent it has a US holding company “sandwiched” in its legal structure - often derived from historical acquisitions of US groups. Such Asean groups may want to explore “out-from-under” restructurings to hold the current CFCs of the US holding company in a more tax friendly jurisdiction to the extent feasible. Such restructuring requires careful planning to manage any potential US tax consequences based on the tax profiles of the US holding company and its foreign subsidiaries. It is also worth noting that Base Erosion and Profit Shifting (BEPS) Pillar 2 and its potential implications should be considered as well when thinking about overall CFC implications and holding companies for such subsidiaries.

REDUCING INCENTIVES FOR FOREIGN JURISDICTIONS TO MAINTAIN ULTRA-LOW CORPORATE TAX RATES

In addition to strengthening the GILTI rules, the Biden proposal also seeks to influence other jurisdictions to end the race to the bottom for corporate income tax rates through the denial of US deductions on related party payments to foreign corporations residing in a regime that has not implemented a strong minimum tax. Earlier this month, the Organization for Economic Cooperation and Development (OECD) announced that 130 countries have expressed support for the proposed 15% minimum global corporate tax rate with details of the deal to be ironed out later this year. The 15% rate is subsequently ratified by the ministers of the Group of Twenty (G-20) nations with an aggressive timetable for bringing the new rules into force in 2023.

According to the Biden proposal, the US will work with the international community under the OECD/G20 Inclusive Framework pursuing a comprehensive agreement on corporate minimum taxation.

This new regime, titled Stopping Harmful Inversions and Ending Low-tax Developments (SHIELD) would replace the current Base Erosion and Anti-Abuse Tax regime, introduced as part of TCJA, and deemed to be “largely ineffective” in the Biden proposal.The proposed regime will significantly limit a non-

AMCHAM, ASIS, INTELLENET and CII

Corporate Investigations• Due Diligence• Litigation Support• Asset Tracing• Background Investigations• Criminal Record Checks

Security ConsultingSecurity Consultingwith Special Emphasis on EnergyAgricultural and Mining Sectorsin Mindanao

• Political/Security Risk Assesments• Counterinsurgency Collections• Crisis Management & Security SurveysThe co-authors of this article are Russell Aubrey, Partner,

International Tax and Transaction Services from Ernst & Young Solutions LLP and Michael Xiang, Senior Manager, US Tax Desk – Asean from Ernst & Young Corporate Advisors Pte. Ltd.

The information in this article is accurate as of 15 July 2021.

image: Freepik.com

image: Freepik.com

42 | Feature 43

Celebrating the 75th

Fil-Am Annual Friendship Day The Amcham Visayas and Mindanao Chapters joined forces in a special 75th Anniversary virtual celebration of the Philippine-American diplomatic relations, in which members of both chapters took part. The Presidents of both Chapters, as well as the Mayors of Lapulapu and Davao cities gave their inspiring messages during the occasion, which also coincided with the United States’ 4th of July celebration.

WELCOME REMARKSHereunder are excerpts from the Welcome remarks of Amcham Visayas Chapter President, Brian Connelly, who is the General Manager of Marco Polo Plaza Cebu:

“The 4th of July is a historic day for Americans. It’s about baseball, apple pie, fireworks, beer, hotdogs, and lots of fun! Of all the holidays, this is probably one of the top five that I miss by not being in the States.

Nevertheless, as you all know, I feel like I am at home here. With the annual Phil-Am Friendship Day and the Phil-Am relationship being so strong, and the fact that we share so many common goals and morals and many of the same likes and dislikes, it makes me feel right at home. Somebody once asked me: What makes an American, an American? It’s really not so much your race, creed, color, religion or anything like that. It really is about the way you think. It’s about the way you look at life, the way you look at democracy, the way you look at each other. And I think that is something that makes an American.”

MINDANAO CHAPTERFor his part, Amcham Mindanao Chapter President

Louis Bongoyan, an officer of the Development Bank of the Philippines, welcomed the

participants and wished their American friends a special

Happy Independence Day.

Bongoyan said, “If the 4th of July

s i g n a l e d the birth

of the

American independence from Britain in 1776, July 4th is also a significant date for Filipinos because on that date we celebrated our Independence Day with the signing of the “Treaty of General Relations and Protocol”, wherein the US relinquished its sovereignty and recognized the independence of the Republic of the Philippines, in 1946.

At present, the 4th of July remains an important date in our country when we commemorate Philippine-American Friendship Day, now on its 75th year. Similar to other relationships, US-Philippine relations are not immune to problems, issues and misunderstandings.

These challenges are inevitable. But, the fact that this friendship has endured 75 years is a testament of the strong ties between the U.S.A. and the Philippines. Most importantly, both countries maintain open communications and provide mutual support.

Welcome, and a Happy 75th Philippine-American Friendship Day - and Happy US Independence Day.”

MAYORS OF CEBU AND DAVAO CITIES, US EMBASSY OFFICIAL GRACE 75TH FIL-AM CELEBRITIESOutside the metropolitan cities in the National Capital Region (NCR), most Filipino-American communities reside or work in either Cebu or Davao cities. The presence of American companies in these areas has contributed greatly to a thriving local economy. In celebrating this momentous occasion, the 75th anniversary of Philippine-American diplomatic relations, it was proper that the Amcham Cebu and Davao Chapters have invited the City Mayors to grace the occasion.

LAPU-LAPU MAYOR’S MESSAGE

Mayor Junard “Ahong” Chan of Lapu-lapu City delivered his message, filled with reassurances of the local government’s support to American and Filipino businessmen, especially during this ongoing health and economic crisis:

He said, “I am truly elated to have been invited again as a guest speaker to another American Chamber of Commerce activity. First and foremost, allow me to congratulate both our countries – the Philippines and the U.S. – for celebrating another year of Filipino-American Friendship Day. History tells us that it was

AMCHAM VISAYAS AND MINDANAO CHAPTERSMESSAGEHonored Guest - Greg O’Connor, Senior Commercial Officer, US Embassy, Manila Greg O’Connor’s message

Mr. Greg O’Connor, Senior Commercial Officer at the US Embassy in Manila, discussed important geopolitical issues affecting the world in general, and the two countries in particular. He gave a bird’s eye view of some positive changes in the US diplomatic policies.

O’Connor emphasized, “As you may have heard, diplomacy is back at the center of US Foreign Policy. This year we are marking an important milestone as we are celebrating the 75th Anniversary of Diplomatic Relations between the United States and the Philippines. This morning, I will give you some updates on our priorities, including the Indo-Pacific strategy, economic development initiatives, COVID-19, and the US-Philippines bilateral relationship.

1. The Indo-Pacific region remains a leading priority in US Foreign Policy under President Biden. We’re seeking to keep all of Asia open, secure, and prosperous. This depends on working closely with allies and partners around the world, including the Philippines and economic engagement is crucial.

2. On the economic development side, we’re happy to say there has been progress with the CREATE Law being passed, and USAID has been very involved in supporting the Philippine government in implementing the law. Just in January, the Department of Finance approved a project with the US Trade and Development Agency that will modernize the Bureau of Internal Revenue’s ICT backbone and data center to make for a more efficient tax administration. We think this improved domestic resource mobilization will allow the Philippine government to invest in growth-enhancing activities.

3. We are working tirelessly on COVID-19. The US government has given almost P1.3B in COVID-19 assistance to the Philippine government. We have also had over 5-million Pfizer vaccines brought to the Philippines under the COVAX Authority, of which the US is the biggest contributor worldwide of over US$2B.

4. On other aspects of our bilateral relationship, we’ve had several productive high-level engagements this year. In April, Secretary of State Antony Blinken and Secretary of Defense Lloyd Austin reaffirmed with their Philippine counterparts US support for Philippine’s claims in the West

on July 4, 1946 that the Philippines, with the help of the American troops, gained independence from the Japanese. This started a long friendship of our two nations that has been strengthened through the years with long-standing friendship that our nations shared.”

Chan continued, “COVID may have slowed us down, but concerted efforts have helped us bounce back. We are happy to announce that our aggressive campaign to have every Oponganon vaccinated has paid off and we are close to reaching the 70% herd immunity goal.

The city government, under the Chan administration, never ceases to assist businesses in their recovery efforts. We have made processing of business permits easy through the online portal. All these have helped business to bounce back easily and making true my campaign promise of making Lapu-lapu City a business-friendly city.

May our continued partnership be a testament to the strong friendship that our two nations forged. On that note, allow me to wish everyone a Happy Phil-Am Friendship Day. Thank you and Mabuhay!”

MESSAGEThe Honorable Sara Duterte-Carpio,Mayor of Davao CityDavao City Mayor’s message

The Honorable Sara Duterte-Carpio, Mayor of Davao City, greeted the participants in the dialect, “Madayao!” and continued, “On behalf of the city government of Davao, I would like to greet the officers and members of the American Chamber of Commerce of the Philippines, Inc. – Visayas and Mindanao Chapters, and all the guests taking part in this joint celebration of the 75th Philippine-American Friendship Day.

Covid-19 continues to affect millions across the globe, and it is in these challenging times that relations between the nations are strengthened. We recognize the important role of investors and organizations like the American Chamber of Commerce not only in helping rebuild the economy, but in forging ahead in creating an even more promising future for Davao.”

Mayor Sara ended in a hopeful note, “And so, please know that Davao City will continue to welcome developments across the various industries you operate, in that it will be beneficial to both our countries and our nationals. And I am hopeful that we will one day see an end to this COVID-19 pandemic and emerge with a stronger, more robust economy.

Thank you, and Happy 75th Philippine-American Friendship Day to all!”

AmCham Philippines | July 2021

AmCham Philippines | July 2021 4544 | Feature

Philippine Sea and underscored their commitment to the US-Philippine alliance.

On the Embassy front, we do not have an ambassador right now, but we hope to get someone nominated pretty soon.”

In closing, O’Connor gave reassuring words, “We are pleased with how far the US-Philippine commercial relationship has come since the establishment of bilateral relations 75 years ago. Global challenges such as COVID and climate change have only underscored the importance of maintaining and strengthening US and Philippine commercial collaboration in the future. I would like to say Happy 4th of July to both our nations, and I’m looking forward to another 75 years of US-Philippine friendship. Mabuhay! Thank you.”

“CELEBRITY” SPEAKER, EVENT SPONSOR AND EXECUTIVE DIRECTOR SPICE UP 75TH FIL-AM FRIENDSHIP DAYThe July 4th virtual joint celebration of the 75th Anniversary of the Philippine-American Friendship Day and the US Independence Day was made even interesting with guests including an officer of a sponsor, an American husband of a Filipina celebrity, and by the energetic Executive Director of the American Chamber of Commerce of the Philippines, Ebb Hinchliffe.

GUEST SPEAKER – LEE O’BRIAN:William “Lee” O’Brian and Marietta Subong, or better known by her stage name Pokwang, are both film actors and entrepreneurs. Together, they established PokLee Food Products, Inc. where they craft authentic and delicious Filipino food products that give you “That Taste of Home” - bringing great memories to Filipinos all over the world. Lee was so happy to share their Fil-Am story.

O’Brian started his talk with an apology, “I am sorry to announce that Miss Pokwang was called in to the studio today, so it’s just going to be me. Apologies to all her Filipino fans out there. Today we are celebrating the 4th of July – one of the greatest and most important American holidays, as well as celebrating 75 years of Phil-Am Friendship and post-World War II diplomatic relations.

In 2013, if asked about the Philippines, I would have replied, “I have a few Filipino friends, and I’ve heard about it, and I know of Manny Pacquiao…”, and that would be it; my knowledge of the Philippines was limited.In 2014, I was cast in a movie created by The Filipino Channel (TFC) in San Francisco. It was then I had the honor – and good luck - of meeting and working with my now-girlfriend, Ms. Pokwang in a movie called “Edsa Woolworth”. It premiered here in January 2015. That started a long-distance relationship and,

finally, in April 2015, I visited Pokwang here – and fell in love with the Philippines, too!

After three weeks here, I was cast for a TV5 show, “Kano Loves Pinay”. The story involved an American and a Filipina meeting thru an online dating site. So, for the next six months, while adjusting to my new life in the Philippines, I was vicariously and therapeutically acting out many of the things I was experiencing in real life on camera.

Pokwang and I continued our relationship and three and a half years ago, we were blessed to have the birth our daughter, a Fil-Am mestiza named Maliya. She embodies both amazing Filipino traits and amazing American traits.”

Their story was not always a bed or roses. O’Brian continued, “The relationship has not been without its challenges, without its obstacles. However, having a good understanding of each other’s cultures is a plus in our relationship. With so much common history, there really aren’t many obstacles to overcome.

That’s what really helps in a relationship; the willingness to learn and acquire the new culture, and experience it; also time to adjust. Pokwang was very helpful, introducing me to her entire family and many friends. In addition, we both experienced the whole celebrity aspect of our relationship; learning to manage the uniquely celebrity aspects of the entertainment industry here.

Our relationship has also brought about an unexpected venture; a year and a half ago, Pokwang and I set up PokLee Food Products, which now has nine different products, as well as farm-direct fruit jams which were launched during the pandemic.

‘PokLee’ is the fusion of two cultures coming together, celebrating each other, and also celebrating the good aspects of each. That’s what we’re bringing into the world. And, as a couple that’s what we try to do as well. We try to celebrate the good, try not to get stuck in the negative aspects or obstacles, promoting the connection of our two cultures - and the unification of both.

I hope I was able to share some wisdom with all of you today. I thank you all very much for your time, Visayas and Mindanao Chapters. Daghang Salamat, Maayong Buntag!”

MESSAGE Mr. Tonierich Casas, Eastern TelecomsEvent sponsor

Event sponsor Eastern Telecommunications’ Mr. Tonierich Casas gave a short message during the celebration. He said, “It is a great honor to be here. By now, you have heard it all – how it would have been wonderful to see everyone in person. However, as a now normal would have had it, we are still blessed to have an opportunity to celebrate today in a more virtual way.”

Explaining the new ways of connectivity, Casas emphasized, “The now normal brings many new demands along with it; we continue to see changes every day. As we power through this new era of our lives, I want to stress how important it is to stay connected and to always treasure our friendships, our partnerships, and how important it is to have that strong connection. We at Eastern Communications are always excited to celebrate this event and show our support to Amcham Visayas, and of course, to Amcham Mindanao.”

In closing, Casas thanked Amcham “for inviting us today, and as always, Eastern will continue to support such events. You can look forward to seeing more of us in the near future. We look forward to a fearless tomorrow with you.”

EXECUTIVE DIRECTOR EBB’S CLOSING REMARKSAmcham Executive Director Ebb Hincliffe had the uneasy task of closing the session, especially following after Mr. O’Connor and Mr. O’Brian – and Mr. Connolly; a sort of Irish convention one might say?Ebb started by thanking most everybody, “A big “Thanks!” to Greg O’Connor from the Embassy, for taking time today. And to Lee, for sharing his personal story with us. It’s great to see our d members from both Amcham Mindanao and Visayas with us today. I recall in November 2019 we discussed having a joint meeting of Visayas and Mindanao members. We just never dreamed it would be a virtual meeting.” He went on to thank more people, “I would like to give a shout out to Annie and Brenda; my hat’s off for the terrific effort to pull off this joint virtual meeting today. It wouldn’t be a 4th of July without a Phil-Am Friendship Day Celebration.”

Ebb gave the context for the celebration, which was often misconstrued by some Filipinos or Americans. He explained, “75th Phil-Am –“… the first time I heard of this anniversary was by a call from Ambassador Babe Romualdez, Philippine Ambassador to the U.S., asking if I could make a recording about the 75th Anniversary of Philippine-American relationship. “What are you talking about?...America and the Philippines have had a relationship now in the last hundred and twenty years.” However, it was explained to me that “75 years” refers to the period

when the United States turned over sovereignty to the Philippines and diplomatic relations were established. We look forward to the next 75 years, as mentioned by Greg (O’Connor) earlier.”

Also, I send a shout out to our great friends at Eastern Communications for sponsoring today. In Amcham, we really depend on our AmCham Corporate Partners to sponsor events like this, especially during these hard times; they keep us running, and they keep our employees employed. So, thank you, Eastern, for all you do for Amcham. Also, thanks to our AmCham Associate Partners -- Oakridge Realty, in the Visayas; Willy Torres, University of Mindanao, and the Dusit Thani in Davao, Mindanao. “

In closing, Ebb offered a toast, saying, “75th year anniversaries don’t come along too often. So, at this time I’d like to ask everybody to turn on your camera, pick up your glass, and let’s have a toast to 75 more years. Cheers and Mabuhay!”

46 | AmCham Foundation AmCham Philippines | July 2021 47

In June, the AmCham Foundation spearheaded the drive to support the unemployed and those who lost their livelihood due to COVID-19 Pandemic. The COVID-19 pandemic has led to a dramatic loss of human life worldwide and presents an unprecedented challenge to public health, the economy and social support system of work. The economic and social disruption caused by the pandemic is devastating: millions of people are at risk of extreme poverty.

Through the generosity of the American Chamber member companies the Foundation collected donations to start the distribution for support of our fellow Filipinos.

AmCham Foundation team reached out to our countrymen in need. Every family contacted received gift certificates that they can use to purchase groceries, enough for their weekly needs. The following areas were covered reach in 3 days:

The Support of Communities Affected by COVID-19 Pandemic

Beneficiaries Date of Distribution

No. of Beneficiaries per Family

District 3 Barangay 375 Zone 5, Tambunting St., Metro Manila - Living in the squatter area- Rug Maker- Tricycle Driver

July 21 in the morning

100

Bgry 59 Zone 5 Juan Luna and Zamora - Scavengers - Informal Settlers - Recently Fire Victims

July 21 in the afternoon

100

Canossa-Tondo Children’s Foundation, Inc. Tondo, Manila District 1 - Scavengers/Scrappers (Nangangalakal)- Collecting and selling “Pagpag”- Living in slum areas / Informal Settler Families

July 26 in the morning

86

Barangay 118 Zone 9 (Tondo) Manila District 1 (Homeless families resettled to Tenement Housing located in the said barangay

primary beneficiaries are PWDsSolo parent Indigent Senior Citizen

July 26 in the afternoon

148

Bridge Builder Foundation, Inc., Paranaque City, Metro Manila - Pedicab Driver - Street Families - Street Vendors - Refugees, native from Mindanao

July 27 in the morning

45

Habal Drivers Association (near LRT Gil Puyat)- Habal drivers

July 27 in the morning

26

District 6Barangay 867 Zone 95 Pandacan, Manila- Recently fire victims- Ambulant vendor (fish ball vendor and fruit vendor)- Pedicab Driver - Tricycle Driver - Labourers / Construction Workers

August 4 in the afternoon

100

TOTAL 605

1st Distributions of Support to our Fellow Filipinos Lost their Livelihood Due to Covid-19 Pandemic

Bgry. 59 Zone 5 Juan Luna and Zamora

Canossa-Tondo Children’s Foundation, Inc. Tondo, Manila District 1

Bridge Builder Foundation, Inc., Paranaque City, Metro Manila

Barangay 118 Zone 9 (Tondo) Manila District 1

Habal Drivers Association (near LRT Gil Puyat)

District 6, Barangay 867 Zone 95 Pandacan, Manila

District 3, Barangay 375 Zone 5, Tambunting St., Metro Manila

The American Chamber Foundation Philippines, Inc., the socio-civic arm of the American Chamber of Commerce of the Philippines for 35 years has been providing disaster response and rehabilitation projects during calamities and is registered as a US Corporation with a 501 (c) 3 status with IRS ID# 52-1685933.

AmCham Philippines | July 2021 4948 | Company News

BDO Pay - Your New Mobile Wallet

BDO Unibank makes your everyday payments quick, easy, and fun through BDO Pay—BDO’s new mobile wallet! Send and Request Money, Scan to Pay, Pay Bills, and more. The best part is, you can pay straight from your BDO accounts—no cash-in, no hassle! WHAT YOU CAN DO WITH BDO PAY• Send Money like you’re sending a message.Say goodbye to long account numbers! Send Money to other BDO Pay users for free using your phone’s contacts, or by typing in their mobile number.

• Pay Bills wherever, whenever.No more long lines, no need to enroll billers! Pay your bills easily in just a few taps through the app.

• Scan to Pay and skip the cash.Zero cash and zero contact. Whether you’re making or receiving them, enjoy safe and seam-less payments online and in stores via QR.

• Split Bills up to the last cent.Divide group bills with up to five other people, and request the money in one tap. No need to count cash or find change!

• Request Money without the hassle.No more forgetting, no more awkward “singilan.” The app reminds family and friends to pay you back, and lets them send your money like they’re sending a message!

BE THE FIRST TO TRY BDO PAY Signing up for BDO Pay is as easy as 1-2 tap when you have a BDO Digital Banking account! Here’s how to sign up:

1. Download BDO Pay for free on Google Play Store, App Store, or Huawei AppGallery.2. Open BDO Pay and sign up with your BDO Digital Banking Username and Password. 3. Choose which BDO accounts you want to link to BDO Pay, then choose your default account.4. Enter a 6-digit PIN or use your device biometrics to log in and confirm transactions. 5. Log in and start using BDO Pay! If you have a BDO account but don’t have Digital Banking yet, sign up for Digital Banking at bdo.com.ph > Online Banking Login > Not Yet Enrolled? Enroll Now! If you don’t have a BDO account yet, open an Online Savings account at bdo.com.ph/online-account-opening Join the BDO Pay Viber Community for news and other updates! Using your mobile phone, go to bdo.com.ph/bdopay-viber to join.

Got questions or need more help? Reach out to us through our email callcenter@bdo.com.ph, or call our hotline at (+632) 8631-8000. You can also chat with us at BDO Unibank on Facebook Messenger—just look for the BDO Unibank account with the blue check mark!

https://www.bdo.com.ph/news-and-articles/BDO-Pay-your-mobile-wallet-digital-banking

image: bdo.com.ph/newsroom

First-Ever ComprehensiveCleft Care Center is now in CebuLocated in Lapu-Lapu City, the center is located at Allegiant Regional Care Hospital (ARC) and is being managed by Smile Train’s long-time partner, Mabuhay Deseret Foundation. With this, free cleft care services, including surgery, nutrition support, orthodontic and dental treatment, and speech therapy, will be even more accessible to the local community and for patients in nearby provinces. Smile Train’s geographical and programmatic expansion comes as the organization also celebrates National Cleft and Craniofacial awareness month this July.

Smile Train also continues to support comprehensive cleft care at other locations, such as at Philippine Band of Mercy, Marikina St. Vincent General Hospital and Noordhoff Craniofacial Foundation of the Philippines in Metro Manila, San Fernandino Hospital in Pampanga and Tebow Cure Hospital in Davao City.

If you know of patients in need - or would like to support Smile Train’s work in the Philippines - please contact us at philippines@smiletrain.org

image: Smile Train

| Company News

AmCham Philippines | July 2021 5150 | Company News

P&G establishes Philippines Forests for Good as part of climate action towards carbon neutrality and announces accelerated goals towards waste and water

In a recent press release, Procter & Gamble (‘P&G’) Philippines recently announced that the company has already reduced over 80% of its greenhouse gas emissions from its local operations. This is way ahead of its global target of cutting 50% by 2030.

This significant progress and the launch of its Philippines Forests for Good program were announced during P&G Philippines’ Sustainability Summit, built on the theme ‘#ItsOurHome’. Hosted virtually, the event focused on increased awareness about the climate and solid waste landscape, and discussed the actionable solutions stakeholders such as companies like P&G, its consumers and partners like NGOs, tech companies, and the government could take towards greater sustainability.

The P&G Philippines’ Sustainability Summit saw participation from its employees, business leaders,

P&G Establishes Forest for Goodin Sierra Madre Mountain Range

external partners, and sustainability advocates from the industry, NGOs and social enterprises. The summit panel included National Solid Waste Management Commissioner, Crispian Lao, Chief Revenue Officer of Plastic, Flamingo Gauthier Belhomme, CEO and Founder of Ecomatcher , Bas Fransen, and Director for Partnership at Fostering Education and Environment for Development (FEED Inc) Anne-Marie Bakker.

During the event, P&G declared accelerated commitment to strengthen progress towards its global Ambition 2030 goals. Ambition 2030 aims to make responsible consumption possible for consumers through holistic, comprehensive interventions across four aspects which the company controls: its brand innovations, supply chain operations, trusted partnerships that impact society, and their employees.

As a result, P&G has a long-term commitment to make significant and meaningful impact in the environmental areas of Climate, Water and Waste:

TAKING ACTION FOR CLIMATE AND NET ZERO EMISSIONS:

1. P&G’s Climate goal is to achieve carbon neutrality by the end of the decade. They will do this by cutting Greenhouse Gas (GHG) emissions at P&G sites globally by buying 100% renewable electricity and increasing energy efficiency.

2. The P&G Cabuyao plant is already using renewable electricity and has successfully cut more than 80% of its manufacturing GHG emissions ahead of the company’s global targets.

3. To further offset the unrecoverable emissions, the company is supporting natural climate solutions that help conserve, protect and restore forests with global partners such as Conservation International and its recently launched P&G Forests for Good program.

4. Beyond helping in P&G’s net zero emissions goal, Forests for Good aims to actively protect nature, beginning with 12 pilot programs in 12 months across its Asia Pacific, Middle East and Africa (AMA) region, by planting trees that help improve local ecosystems.

The Philippines is one of the pilot countries supporting this natural climate solution and will help forestation efforts in the Sierra Madre Mountain Range.

To establish its P&G Philippines Forest for Good, P&G entrusted each employee with trees, planted on their behalf by farmers in the Sierra Madre mountain range. Employees can name their tree, virtually travel to see it up close, check on it and learn more about it as it grows, and learn more about the farmer who planted it.

Today, there are 5,000 trees and counting in the P&G Forest for Good in Sierra Madre and P&G will continue to help in the reforestation efforts for the Philippines’ longest mountain range and “Luzon’s backbone”.

P&G Forests for Good in the Asia Pacific, Middle East and Africa (AMA) region has partnered with EcoMatcher to pilot their blockchain technology that increases forestry transparency and accountability, together with local conservation organizations in each country where they are starting this journey. In the Philippines, FEED Inc is the local conservation partner of Ecomatcher and P&G. The program better enables employees, partners and consumers to have strong visibility and tracking of the impact they have from planting trees.

ACTIVE WATER CONSERVATION:P&G is also on track to achieving its global water goals to increase water efficiency at its sites and source at least 5 Billion Liters from circular sources. The P&G Cabuyao plant tracks its overall water consumption and recycles wastewater inside the plant. P&G’s 2030 goal is to promote and support water conservation and protection for people and nature. Aside from initiatives within its manufacturing plant, they are actively innovating on brands and products such as laundry brands Tide and Ariel so that they can help reduce consumer in-home water use.

P&G AMA also recently announced acceleration of these goals by developing a water stewardship action plan in accordance with the externally recognized Alliance for Water Stewardship standard for 100% of P&G’s manufacturing sites located in high water stress areas by end of 2022. This will significantly help as water scarcity is a challenge facing many parts of the world including several across the AMA region.

ENABLING PLANT AND CONSUMER WASTE MANAGEMENT:

P&G AMA has also certified that 100% of its plants as Zero Manufacturing Waste to Landfill, including its local Cabuyao manufacturing plant. To help reduce post-consumer waste, P&G is committed to comprehensively work on and invest in packaging design and innovation across brands as well as collaborating with external stakeholders on piloting waste infrastructure interventions across several of its markets.

In the Philippines, P&G has already eliminated the virgin plastic overwrap packaging on its Safeguard multi-packs and are now using 100% recycled paper carton material. The change saves 8,500 kilometers worth of plastic waste every year, equivalent to one thousand times the length of the world-famous Boracay shoreline. P&G’s new Herbal Essences bio: renew collection also now uses post-consumer recycled material for its bottle packaging.

Ultimately, P&G will make 100% of its packaging recyclable or reusable by 2030 and will also cut the use of virgin plastic in packaging by 50%.

Photo: Procter & Gamble

About Procter & GambleP&G serves consumers around the world with one of the strongest portfolios of trusted, quality, leadership brands.For queries, contact:Procter & Gamble PhilippinesCharm Banzuelo banzuelo.c@pg.com;Anna Legarda legarda.al@pg.comEon Inc.Luckie Masbad luckie.masbad@eon.com.ph

AmCham Philippines | July 2021 5352 | Company News

Railway Projects of the PhilippinesBy Tracy Piamonte, John Clements Consultants, Inc.

The Joint Foreign Chambers of Commerce of the Philippines hosted the second session of Let’s Get Rail: Updates on the Railway Projects of the Philippines on June 24, 2021. The webinar shared an update about the ongoing and planned urban rail projects in Mega Manila such as the Metro Manila Subway, LRT-1 extension, and MRT-7.

The Philippines currently has less than 100 km of operating rail lines, all in Metro Manila. By comparison, Thailand has 4,400 km, without counting Bangkok.

Aware that rail is the ideal mode for passenger transport, the DOTr and the private sector — with support from JICA and ADB — are implementing a significant expansion of the rail network in Luzon and building new lines in Metro Manila. The PRC has also promised to finance and to build new and restore old railroads under its BRI. Over US$20 billion worth of projects are now under construction and being bid out, which will double the present network.

Why do we need rail? We need it because this is the most efficient way to move people. Car sales reached 400K in 2017. The photo below will better explain why we need a mass transportation system. Our current infrastructure cannot accommodate so many cars. One (1) 200M-long LRT line train set can displace 816 private

vehicles, 139 jeepneys and 39 buses, occupying only a 9M-wide railway track, while the North-South Commuter Railway (NSCR) system can displace 1,318 (1.7 passengers each) cars, 224 jeepneys (10 passengers each) and 64 buses with 35 passengers each.

According to Waze, Metro Manila traffic congestion may be the world’s worst and the Philippines is incurring Php26.21B worth of losses everyday due to our terrible traffic conditions. Currently, we have

73 stations in Mega Manila compared to the robust railway system of our neighboring countries. The commitment of the “Build Build Build” program is to double the figures by 2025. This is 68% of the total budget, and are all approved projects.

The existing railway footprint is 844,000 sq.m and the future railway footprint is 18,545,000 sq.m. The following projects are:

• MRT 4 — NRC to Region IVA (Rizal)• MRT 7 — NCR To Region III (Bulacan)• Metro Manila Subway — to traverse 1. Valenzuela, 2. QC, 3. Pasig, 4. Makati, 5. Taguig, 6. Parañaque, and 7. Pasay• Common Station (QC, NCR)• North South Commuter Railway System (NSCR)• PNR Clark 1 (NCR, Bulacan Region III)• PNR Clark 2 (Bulacan Region III to Pampanga)• PNR Calamba (NCR to Region IVA Laguna)• Subic — Clark Railway (Region IV Pampanga — Zambales)• PNR Bicol — NCR, Region IVA, Quezon Province, Batangas, Region V Cam. Norte, Cam. Sur, Albay, Sorsogon• Mindanao Railway (Region XI, Tagum, Carmen, Panabo, Davao, Sta. Cruz, Dagos)

The existing LRT 1 is in the rehabilitation stage. Station improvements include train restoration, replacement of parapets, rail replacement and automation, and other innovations such as app sharing with Angkas and Ikot Manila among others, which is still part of Phase 1. The Cavite extension will be operational by 2022. Phase 2, which will span from 2023 to 2047, is commuting from Cavite to QC.MRT 7 is expected to benefit 850,000 passengers per day, with completed manufacturing of 108 cars for a 36-train set/3-car configuration. Project status is 54.87% completion.

The projects have been started by previous administrations but for some reason have not been completed. Real estate value will rise in the areas where this mass transport system will be built, and when all the projects are completed, it will spur economic activities in the National Capital Region and the neighboring provinces. But most importantly, it will provide convenience to the commuting public.

There can be economy only where there is efficiency. — Benjamin Disraeli

A developed country is not a place where poor have cars, it’s where the rich ride the public transportation. — Anonymous

image: Freepik.com

image: dotr.gov.ph/PNR Clark Phase 2 and PNR Calamba

image: dotr.gov.ph/Mindanao Railway Project (Phase 1) image: dotr.gov.ph/North-South Commuter Railway (NSCR) Project

AmCham Philippines | July 2021 5554 | Company News

Moving Without Fear – Successful International Relocations Amid COVID-19

The current global pandemic has added more layers of anxiety and uncertainty to any international relocation, regardless your reasons for relocating. There are instances when one must move notwithstanding the external situation or circumstances.

Amid these turbulence times, however, having a professional mover to guide you through the process is crucial. Relocating abroad will be much easier with a moving professional being there for you at every step of the way; from research of the relocation destination, and even settling-in at final destination. Here is a list of things one should enquire from the moving company during their move in such times:

• Virtual ConsultationTo minimize physical contact and instances of face-to-face interaction, virtual consultation enables you to discuss your moving needs with the mover while being guided through the home using a mobile device.

• Flexible move datesWith a lot of uncertainty regarding lockdowns and opening-up of cities, it’s hard to agree to a fixed move

date, it is important that a person has access to critical services that help you relocate

• High quality storage solutionsIn case of any unforeseen event that a move is postponed, it is crucial that you have the access to a storage facility that will be made available to store any items until the moving date

• Latest Immigration InformationWith varying forms of lockdowns and travel restrictions put in place around the globe to curb the spread of coronavirus, it is crucial to have the access to the latest – up-to-date - information on border restrictions and immigration information to plan ahead for the move.

• Health and Safety PrecautionsLastly and most importantly, a rigorous health and safety protocol must be in place throughout the moving process, to keep your family safe during these unprecedented times.

(11-year- old Noah and his mother, Akiyo, who recently moved to New Zealand with his family, have shared their experience with Crown Relocations. Noah and Akiyo talked about how they feel about the excitement of moving to New Zealand, along with their pet and how Crown Relocations made the whole process simpler for them.)

AmCham Philippines | July 2021 5756 | AmCham Staff

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