PHL pharma to gain from US firms’ pivot By Andrea E. San Juan @andreasanjuan
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HE Philippine pharmaceutical industry stands to benefit from the relocation of business operations of US multinational pharmaceutical firms as Southeast Asia is positioned to capture this growth opportunity, according to the Philippine Pharmaceutical Manufacturers Association (PPMA).
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In its economic outlook, BMI, a Fitch Solutions company, noted that Southeast Asia (SEA) is positioned to “leverage nearshoring for economic growth, with the pharmaceutical sector poised to benefit significantly from these trends.” A s k e d i f t h e Ph i l i p p i n e pharmaceutical industry will gain from this growth opportunity in the region, PPMA President Higinio Porte Jr. said, “Yes, because we are
strengthening the capability of local manufacturers.” “ We are also looking into partnering with multinational pharma companies to scale up Philippine operation and build facility in the planned Pharma Zone,” Porte told the BusinessMirror in a Viber message on Monday. The PPMA head added a caveat: “We need to strengthen, though, regulatory processes to make it
faster and easier.” A ccord i ng to BM I , “ T h i s transformation presents SEA with a significant growth opportunity, particularly as geopolitical tensions between Mainland China and the US continue to escalate with the likelihood of BIOSECURE Act being passed in the US.” BM I e x pl a i ne d t h at t he See “Pharma,” A2
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BIR, AMLC CLOSE RANKS VS. EVADERS, LAUNDERERS By Reine Juvierre S. Alberto
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HE Bureau of Internal Revenue (BIR) will team up with the Anti-Money Laundering Council (AMLC) to intensify its crackdown on tax evaders and money launderers.
Internal Revenue Commissioner Romeo D. Lumagui Jr. convened with AMLC Executive Director Matthew M. David and other officers on August 29, 2024, to discuss interagency cooperation and coordination, the BIR said on Monday. “ This interagency cooperation between the BIR and the AMLC will pave the way for future investigations on tax evasion and money laundering,” Lumagui said. The BIR chief pointed out that tax evaders are now utilizing sophisticated ways to evade taxes and store their wealth illegally, such as through the use of “ghost receipts.” Ghost receipts are fake receipts issued by non-existent or shell companies that do not conduct legitimate business activities. Buyers of ghost receipts use them to lower their tax liabilities by increasing their expense reports to reduce their taxable profit. This creates “a scheme that directly endangers the integrity of our financial system,” the BIR said. “The law is clear, all sources of income, whether from legal or illegal means, are taxable,” Lumagui added. House Committee on Ways and Means Chairman Joey Sarte Salceda said the collaboration would also benefit the AMLC, empowering it to get initial warrants for authorities to investigate tax evaders for other financial crimes. “Anything that involves money laundering almost always involves tax evasion, because the former involves hiding ill-gotten income,” Salceda said. The lawmaker added that he advocated for “Al Capone tax laws,” named after the notorious American gangster nabbed for tax evasion, in 2022. This would presume that if the source of income or wealth cannot be proven or traced to some taxed transaction, it becomes prima facie evidence or sufficient evidence for filing tax evasion cases. “Tax evasion is always easier to track as a lead for other crimes,” Salceda noted. The BIR vowed it would work handin-hand with the AMLC to run after criminals engaged in violations of tax and anti-money laundering laws. About P370 billion in foregone revenues were recorded due to fake transactions using ghost receipts, and an estimated 30,000 corporations and sole proprietors have been identified as buyers of ghost receipts.
FLOODS AND FAITH The combined photos capture the devastating impact of Typhoon Enteng in Manila and nearby areas. The typhoon’s intensified strength caused significant damage, including overflowing rivers, flooding, and destruction of houses. An image of a man carrying a carved depiction of the Holy Family near Baseco symbolizes the resilience and faith of the residents during this difficult time. Meanwhile, members of the Department of Public Works and Highways maintenance department work to clear fallen trees along Bonifacio Drive in Port Area, Manila, and motorists navigate flooded streets, including pedicabs and motorcycles, at Baseco Compound. NONIE REYES & ROY DOMINGO
DRESSED CHICKEN INVENTORY IN COLD STORAGE DIPS By Ada Pelonia
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HE countr y’s dressed chicken inventory declined as traders made way for the “ber” months’ shipments, according to the United Broiler Raisers Association (Ubra). Data from the National Meat Inspection Service (NMIS) showed that dressed chicken inventory in cold storage facilities nationwide stood at 31,917 metric tons (MT) as of August 26. This was lower than the 32,413 MT recorded in the previous week. “Importers are maybe creating more space for their September to December arrivals,” Ubra Chairman Elias Jose Inciong told
the BusinessMirror via Viber. Figures from the NMIS, an attached agency of the Department of Agriculture (DA), revealed that a chunk of the inventory during the period consisted of imports at 21,601 MT while the local inventory held 10,315 MT. For the dressed chicken inventory, the agency said its data excluded freshly chilled chicken and mechanically deboned meat (MDM), adding that the inventory for those already in distribution channels was not included. NMIS data showed the frozen pork inventory registered an increase to 60,275 MT as of August 26 from 58,031 MT in the previous week.
Imports held the bulk of the inventory at 58,874 MT while pork from local raisers stood at 1,400 MT. Cold storage facilities in Region 3 and Region 4-A held a chunk of the pork inventory during the period. Both regions also accounted for the bulk of the dressed chicken inventory, according to NMIS. Meanwhile, the country’s meat imports grew by nearly 10 percent in the first semester, driven by higher chicken and pork purchases abroad. Data from the Bureau of Animal Industry (BAI) showed meat imports increased by 9.64 percent See “Chicken,” A2
NCR retail prices up to 6.6% on July on mineral fuels hike
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ETA IL prices in Metro Manila or the National C apit a l R eg ion ( NCR) increased in July 2024, according to the latest data from the Philippine Statistics Authority (PSA). This is the first time there was a month-on-month increase in the General Retail Price Index (GRPI) since February 2023 when the GRPI increased to 6.6 percent from 6.3 percent in January 2023. The July increase in the GRPI was faster than the 1.8 percent posted in June 2024, but slower than the 3.9 posted in the same period in 2023. In the January to July period, the GRPI posted a 2.1-percent growth. “The primary contributor to the uptrend in the annual rate of
GRPI in NCR was the higher annual increase observed in the index of mineral fuels, lubricants and related materials at 7.4 percent in July 2024 from 5.7 percent in the previous month,” PSA said. A pa r t f rom f ue l s, c r ude materials, inedible except fuels such as firewood and charcoal also posted a higher growth of 1.1 percent from 0.8 percent in June. This was followed by chemicals, including animal and vegetable oils and fats such as those used for paints, varnishes, pharmaceutical preparations, and cosmetics, among others. The growth in these items’ retail See “NCR,” A2
PESO EXCHANGE RATES n US 56.1790 n JAPAN 0.3844 n UK 73.7911 n HK 7.2047 n CHINA 7.9215 n SINGAPORE 43.0391 n AUSTRALIA 37.9995 n EU 62.0778 n SAUDI ARABIA 14.9711 Source: BSP (September 2, 2024)