#Arsenio M. Balisacan

[biglisbonnews]

Philippine Housing Industry and Key Government Leaders to Headline 31st National Developers Convention in Cebu City The Subdivision and Housing Developers Association, Inc. (SHDA) will gather key government leaders, creatives, and industry leaders in the housing and real estate sector as they host the 31st edition of the National Developers Convention on October 5 and 6, 2023 at the Radisson Blu Hotel in Cebu City. With the theme, “LOKAL NA BAI: [...]The post Philippine Housing Industry and Key Government Leaders to Headline 31st National Developers Convention in Cebu City appeared first on Orange Magazine. https://orangemagazine.ph/2023/ph-housing-industry-and-key-government-leaders-to-headline-31st-national-developers-convention-in-cebu-city/?utm_source=rss&utm_medium=rss&utm_campaign=ph-housing-industry-and-key-government-leaders-to-headline-31st-national-developers-convention-in-cebu-city

[777wave]

NEDA Secretary 1973-2024 (present time):

A Group of 17 (G17) valiant men.

1. Gerardo Sicat

2. Placido Mapa

3. Cesar Virata

4. Vicente Valdepeñas Jr.

5. Solita Monsod

6. Jesus Estanislao

7. Cayetano Paderanga Jr.

8. Cielito Habito

9. Felipe Medalla

10. Dante Canlas

11. Romulo Neri

12. Augusto Santos

13. Ralph Recto

14. Emmanuel Esguerra

15. Ernesto Pernia

16. Karl Kendrick Chua

17. Arsenio Balisacan

—

NEDA (National Economic and Development Authority) plays a crucial role in analyzing the impact of ENTREPRENEURSHIP on COMMERCE, evaluating OUTPUT levels, safeguarding ASSETS, and advising on policies to maintain the BSP (Bangko Sentral ng Pilipinas) as a HAVEN for economic stability.

C • Canlas

O • Output

M • Mapa

M • Monsod

M • Medalla

E • Estanislao

R • Recto

C • Chua

E • Esguerra

H • Habito

A • Assets

V • Virata

V • Valdepeñas

E • Entrepreneurship

N • Neri

B • Balisacan

S • Sicat

S • Santos

P • Pernia

P • Paderanga

—

Photo credit:

Jonathan Cruz

—

#G17

#NEDAInclusiveGrowth

#FilipinoFirst

#KayaNatinIto

#Series17of17

[wynetteblogtime]

Journal Entry No. 4 (BLOG): Food Security and its Role in Philippine Governance

Observation

Choosing which topic to tackle concerning food security was difficult because it plays a role in the survival of our society. It is a basic need that no human could live without and to control it means that you have control over human lives. My parents would often tell me not to waste my food because there are children who die in the streets; I should be grateful to have something nutritious on my plate. But why should the suffering of human beings be used as an example? Access to food and water is a right, so why is it common to say a sentence like that, implying it is a privilege? The government has control over the food that is being distributed to the masses, how come there are still people who cannot eat?

Insight

It is undeniable that the Philippines is a country with potential for economic growth, based on statistics from the International Monetary Fund, it is currently maintaining a gross domestic product (GDP) of 5.9% in 2024. (IMF Data Mapper, n.d.). However, despite this significant economic growth, many families still struggle to survive. Based on a survey conducted by the Social Weather Station (SWS), 3.4 million Filipino families experienced hunger in the 2nd quarter of 2021. (Genota, 2022). According to research by PIDS Supervising Research Speciality Ivory Myka Galang, she states that there are four dimensions of food security which are: food utilization, food stability, food accessibility, and food availability. The study notes that while there have been efforts, it is also said that "food security in the Philippines is yet to be achieved." (Address Challenges in Achieving Food Security in PH—PIDS Study, n.d.) Despite the challenges ahead of the Philippines, there may be a way to improve food security in the long term. According to the Philippine Institute of Development Study (PIDS), “with traditional agricultural methods falling short, investing in new technologies is key to transforming the country’s livestock, poultry, and dairy (LPD) industries.” (Tech Investments Key to Modernizing Agri sector—PIDS Studies, n.d.). With this in mind, if the Philippine government were to invest in developing better technology to boost production in the agricultural sector, the Philippines would be able to catch up with their neighboring countries and have less dependence on imported products. As a matter of fact, President Marcos Jr. has plans to improve food security. Based on a statement made by National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan, "To ensure the availability of affordable food and reduce transport costs, President Ferdinand R. Marcos Jr. recently approved the three-year food logistics action agenda of the DTI. The program aims to ensure available, accessible, and affordable food for consumers by upgrading food terminals and developing an efficient logistics system." (PH GOV’T TO ENSURE FOOD SECURITY, SUFFICIENT ASSISTANCE TO FARMERS—NEDA, 2023).

Learning

I admit, I'm rather skeptical about whether or not these government implementations would help starving families across the Philippines. Our economy has grown so much and technology has advanced so much, yet the issue of food security has not changed. Considering that the Philippines is a fast-growing country, with an estimated growth of 145 million by 2050 (Nguyen, 2022), if the government keeps missing opportunities to help the people they made an oath to serve then I doubt that anything will change.

Sources:

Address challenges in achieving food security in PH—PIDS study. (n.d.). https://www.pids.gov.ph/details/news/press-releases/address-challenges-in-achieving-food-security-in-ph-pids-study

Galang, I. M. R. (2022). DISCUSSION PAPER SERIES NO. 2022-21. Is Food Supply Accessible, Affordable, and Stable? The State of Food Security in the Philippines. https://pidswebs.pids.gov.ph/CDN/document/pidsdps2221.pdf

Genota, Q. (2022, January 4). Food security in the Philippines. Climate Tracker Asia. https://climatetracker.asia/food-security-in-the-philippines/

IMF Data Mapper. (n.d.). IMF. https://www.imf.org/external/datamapper/profile/PHL

Nguyen, T. (2022, July 13). Why the Philippines Is So Vulnerable to Food Inflation. Carnegie Endowment for International Peace. https://carnegieendowment.org/2022/07/13/why-philippines-is-so-vulnerable-to-food-inflation-pub-87467

PH GOV’T TO ENSURE FOOD SECURITY, SUFFICIENT ASSISTANCE TO FARMERS—NEDA. (2023, September 5). Govph. https://neda.gov.ph/ph-govt-to-ensure-food-security-sufficient-assistance-to-farmers-neda/

Tech investments key to modernizing agri sector—PIDS studies. (n.d.). https://www.pids.gov.ph/details/news/press-releases/technology-investments-key-to-modernizing-agri-sector-pids-studies

[snugsodium]

CTBEx Construction Pushes Through, Making Travel Easier in the South

According to Reuters, The economic planning head announced on Thursday that the government of President Ferdinand Marcos Jr. has approved 123 new projects that would be a part of a pipeline of infrastructure worth 9 trillion pesos ($163 billion) that it expects to start or complete in the upcoming years.

Marcos has stated that he prefers to use private finance to fund his infrastructure objectives as opposed to the previous administration, which relied on foreign financing, especially from China.

The 123 projects, according to Economic Planning Secretary Arsenio Balisacan, are primarily focused on enhancing physical connectivity, such as long-distance railways close to the capital and in the central and southern Philippines, as well as an upgrade of the ailing Manila International Airport, the nation's main entry point.

Moreover, at the start of the year, based on the report of the BusinessWorld, according to Arsenio M. Balisacan, secretary of the National Economic and Development Authority (NEDA), over 3,600 infrastructure projects totaling $372 billion are planned for implementation through 2028.

The current administration is taking steps to speed up the nation's infrastructure development. They have begun gathering all of these potential infrastructure projects as of January of 2023 Several government departments have identified over 3,600 projects, which together would cost about $372 billion over the next few years, statement at a live economic briefing on Monday in Frankfurt, Germany. He mentioned this in his statement at a live economic briefing on Monday in Frankfurt, Germany.

[arun-pratap-singh]

Neda OKs 7 ‘high impact projects’ under PBBM

The construction of a new Dumaguete airport, rehabilitation of the Metro Rail Transit (MRT) and the creation of the flood control system in Mindanao are among the seven “high impact projects,” which were approved by the National Economic and Development Authority (Neda) Board during its meeting on Thursday. Socio-economic Planning Secretary Arsenio M. Balisacan disclosed the approved projects…

[creatiview]

[ad_1] The National Economic and Development Authority (NEDA) has approved seven “high-impact” projects, ranging from agriculture to transportation, the agency’s top official announced on Friday. Three of the seven projects, namely the New Dumaguete Airport Development, Mindanao Inclusive Agriculture Development, and the first phase of the Integrated Flood Resilience and Adaptation, will be funded by official development assistance or ODA. “These projects are expected to significantly contribute to achieving our social and economic transformation goal in the medium term,” NEDA Secretary Arsenio M. Balisacan said during a virtual briefing. The New Dumaguete Airport Development project covers the construction of an airport facility in Bacong, Negros Oriental. It will be implemented by the Transportation department. “This project will replace the existing Dumaguete-Sibulan Airport due to physical and operational constraints involving the latter,” Mr. Balisacan said.  “The New Dumaguete Airport shall enhance the province’s tourism and trade potential, economic activities, and standard of living,” he noted. The project will cost P17 billion in total, with the Export-Import Bank of Korea-Economic Development Cooperation Fund contributing P13 billion. The remainder will be borne by the Philippine government.  Meanwhile, the Mindanao Inclusive Agriculture Development project aims to increase agricultural productivity, resilience, and access to markets and services of organized farmers and fisherfolk groups in some ancestral domains in Mindanao. “It will improve the economic situation of the indigenous peoples in Mindanao and further strengthen the capacity of local government units (LGUs) to implement support programs that address weak market linkages and poor infrastructure in geographically isolated ancestral domains,” Mr. Balisacan said. The project is expected to cost P6.6 billion. Of the total, the World Bank will provide P5.3 billion, the Department of Agriculture P863 million, and LGUs P461 million. The NEDA board also confirmed the approval of the first phase of the Integrated Flood Resilience and Adaptation project. The project hopes to mitigate flood damage, reduce flood risks, and improve climate resilience in the Abra, Ranao, and Tagum-Libuganon river basins in Mindanao. “The first phase of this flood resilience project will have the following outputs:  the improvement of strategic flood risk management planning; the development of flood protection infrastructure in three target major river basins, and lastly, the strengthening of community-based flood risk management measures,” Mr. Balisacan said. The project has an estimated cost of P20 billion and will be financed by the Asian Development Bank. The NEDA also announced changes to the Davao Public Transport Modernization and Metro Rail Transit Line 3 (MRT 3) Rehabilitation projects. The agency approved the Transportation department’s request for change in scope, increase in cost, and extension of the implementation period for the Davao Public Transport Modernization project. The project cost was increased to P73.38 million from its initial P18.66 million. “The project involves delivering a modern, high-priority bus system for Metro Davao, wherein interconnected bus services will be prioritized along 29 routes. The implementation period for this project is extended from 2023 to 2029,” Mr. Balisacan added. At the same time, the MRT-3 Rehabilitation project was granted approval to change its scope, increase in project cost, extension of implementation period, additional loan, and second loan reallocation. The project cost was increased to P29.6 billion from the original P21.9 billion. The NEDA also approved the utilization of a P2.1-billion remaining loan from the Japan International Cooperation Agency to improve air transport facilities. On Thursday, NEDA announced the approval of the University of the Philippines- Philippine General Hospital (UP-PGH) Cancer Center public-private partnership (PPP) pr

oject. It is the Marcos administration’s first approved PPP project. The project will build a P6-billion cancer center. “To set the record straight, there will be no privatization of PGH services. The government shall own the entire facility and PGH shall continue to operate as a public hospital,” Mr. Balisacan added. – Luisa Maria Jacinta C. Jocson [ad_2] Source link

[phgq]

Competition policies needed in economic recovery

#PHnews: Competition policies needed in economic recovery

MANILA – The Philippine Competition Commission (PCC) reiterated the crucial role of competition policies as the government tries to revive the economy amid the pandemic.

��In PCC’s virtual roundtable on Competition in the Recovering Economy, PCC chairman Arsenio Balisacan said policies that may lead to lessening competition, increasing market concentration, and distorting market structures “must be lifted when no longer needed”.

 “Such consequences will stifle long-term prospects for innovation, growth, and consumer welfare,” Balisacan said.

 To recall, the Bayanihan to Recover as One (Bayanihan 2) has increased the compulsory notification for merger and acquisition (M&A) transactions to PHP50 billion from the previous PHP6 billion for the Size of the Person, and PHP2.4 billion for the Size of Transaction.

 Although this could save failing and existing firms affected by the pandemic through mergers and acquisitions, this could result in a rise in market power.

 “The rise in market power risks consumer harm if it comes with the ability and incentive to exercise that market power in the form of higher prices, lower quality of goods and services, or less innovation,” Balisacan said.

 Bayanihan 2 has also prevented the PCC to conduct motu proprio review for one year.

 The PCC chief said that with the fewer M&A notifications following the passage of Bayanihan 2, the anti-trust body will heighten its enforcement efforts to prevent anti-competitive deals and abusive practices that harm consumers.

 “Adhering to competition principles remains beneficial during the pandemic, and becomes even more so during the recovery period, as we work together to build a more resilient and inclusive economy,” Balisacan said. (PNA)

  ***

References:

* Philippine News Agency. "Competition policies needed in economic recovery." Philippine News Agency. https://www.pna.gov.ph/articles/1122961 (accessed November 26, 2020 at 04:36AM UTC+14).

* Philippine News Agency. "Competition policies needed in economic recovery." Archive Today. https://archive.ph/?run=1&url=https://www.pna.gov.ph/articles/1122961 (archived).

[un-enfant-immature]

Grab-Uber deal wins Philippines approval but ‘virtual monopolist’ concern remains

Grab’s acquisition of Uber’s Southeast Asia business in May has been embroiled in regulatory scrutiny, but the ride-hailing firm has some positive news after the Philippines’ regulator gave the deal the all-clear. It did so, however, whilst laying out terms to prevent the company from becoming overly dominant.

Singapore’s watchdog said in July that competition concerns may see it unwind the deal, which saw Grab pick up and then shutter Uber’s ride-hailing and food delivery business while the U.S. got a 27.5 percent stake in its recent. Competition is also a concern in the Philippines, but the Philippine Competition Commission (PCC) ruled today that Grab will submit to “service quality and pricing standards” in order to ensure consumers are treated fairly.

Singapore and the Philippines have been the most staunch investigators of the deal, so today’s news is a significant boost for Grab, which recently scored $2 billion in funding from Toyota and a range of other investors. Despite the okay, the PCC is keeping a firm eye on the situation after it concluded that “Grab operates as a virtual monopolist.”

The commission said that, post-Uber, Grab has committed to a series of terms that include more consistent and transparent pricing, the removal of exclusivity deals for drivers, and more.

Here is the full list of clauses from the PCC website:

Service Quality Commitment: Grab shall commit to bring back market averages for acceptance and cancellation rates before the transaction, and response time to rider complaints.

Fare Transparency Commitment: Grab will revise its trip receipt to show the fare breakdown per trip, including distance, fare surges, discounts, promo reductions, and per-minute waiting charge (if reinstated by LTFRB).

Commitment on Pricing: Grab shall not have prices that have an “extraordinary deviation” from the minimum allowed fares. Grab will be penalized equivalent to 5% of Grab’s commissions, or up to P2 million, in the identified trips with extraordinary deviation that do not have sufficient justification.

Removal of “See Destination” Feature: Grab will remove “see destination” feature for drivers with low ride acceptance rate.

Driver/Operator Non-Exclusivity Commitment: Grab shall not introduce any policy that will result in drivers and operators being exclusive to Grab. Current Grab drivers/operators are allowed to register/operate under other Transport Network Companies (TNCs) through a multi-homing scheme.

Incentives Monitoring Commitment: Since incentives may result in drivers remaining exclusive to Grab, and thus affect its competitors’ conditions of entry and the ability to expand, the Commission shall monitor and evaluate Grab’s incentives on the basis of mandatory quarterly reports.

Improvement Plan Commitment: Grab will implement the following: (1) enhance driver performance standards, (2) adopt a Driver Code of Conduct, (3) establish a Grab Driver Academy; (4) adopt an emergency SOS feature, help center, and passenger no-show feature; (5) adopt a Passenger Code of Conduct; (6) maintain dedicated service lines subject to prevailing labor regulations; (7) adopt a Driver Welfare Program; and (7) implement a Driver Rewards Program.

The PCC said it will appoint a third-party to monitor Grab’s progress in adhering to these terms, which it hopes will hold the company to account in the same way Uber’s competition did.

“The PCC’s Commitment Decision holds Grab to a standard as if Uber were present in the market. In effect, while Grab operates as a virtual monopolist, the commitments assure the public that quality and price levels that would prevail are those that had been when they still faced competition from Uber. Moreover, the commitments ensure that the merger will not make it more difficult for new players to enter and grow,” PCC Chairman Arsenio M. Balisacan said in a statement.

The pricing component is particularly important.

Since Uber’s departure many users, particularly those in the Philippines, have complained about rising prices on Grab since the exit of Uber. The company previously brushed that concern aside, claiming that it hasn’t increased prices but the differences between its costs and Uber’s are down to an alternative pricing model. In Grab’s case, the company told TechCrunch it has “always maintained a competitive per KM fare with 2.0 surge max.” Uber’s surge, it said, could reach 4X.

That’s been dismissed by many users but those in the Philippines can at least take hope from the fact that their regulator is pushing the issue.

There’s also very legitimate concern that Grab’s position has made it impossible for new entrants to challenge its business.

Indonesia’s $5 billion startup Go-Jek is in the process of expanding its business regionally after it went live in Vietnam this month. The Philippines and Thailand are also on its new market list for 2018. But Go-Jek has had to raise over $1 billion to get its shot, and there’s no guarantee it will replicate its dominance in Indonesia in other countries.

The fact remains that other ride-hailing rivals of scale are near-impossible to find in Southeast Asia even though Grab co-founder Hooi Ling Tan said publicly that “there’s still a lot of existing competition.” In most cases, Grab’s stiffest competition is local market taxi firms, many of which have added app-based bookings to bolster their business.

Grab said in a statement that it has made the commitments voluntarily and that it supports competition:

We are happy that the Philippine Competition Commission (PCC) has recognised the legality of Grab’s deal with Uber in Philippines and accepted Grab’s voluntary commitments. PCC’s pro-innovation approach and forward-looking decision sets a strong example for other regulators examining the Grab-Uber deal, and encourages fair competition and a level playing field that ultimately benefits consumers and drivers. As we move forward to become an everyday app that serves the daily essential needs of people in Southeast Asia, we will continue to stay focused on serving the best interests of our consumers and partners.

Aside from its new funding, which takes the company to $6 billion raised to date and gives it a valuation of $11 billion, Grab has been busy expanding its reach.

The company widened its GrabFood service across the region thanks in no small part to the UberEats, while it is rolling out a revamped version of its app that emphasizes its collection of services not just ride-hailing. Part of that strategy included the launch of a platform that allows third-parties to tap the Grab platform and bring their services into its app. The launch partner for that was food delivery service HappyFresh, which is rumored to have picked up funding from Grab.

Investment is another area where Grab is stepping up. It recently announced Grab Ventures, a division that will handle strategic investments and manage an accelerator program called ‘Velocity.’

[davidangway]

How to increase your financial IQ during traffic?

How to increase your financial IQ during traffic?

The economic cost of traffic mayhem is devastating our country today and no one knows when it will end. Economic  Planning Secretary Arsenio M. Balisacan has said the economic cost equals $3 billion a day. The sad part of it is we lose that much money forever. Traffic jams wear us out physically and often mean the loss of quality time with family, deny everyone sufficient rest and…

[fmservers]

Grab-Uber deal wins Philippines approval but ‘virtual monopolist’ concern remains

Grab’s acquisition of Uber’s Southeast Asia business in May has been embroiled in regulatory scrutiny, but the ride-hailing firm has some positive news after the Philippines’ regulator gave the deal the all-clear. It did so, however, whilst laying out terms to prevent the company from becoming overly dominant.

Singapore’s watchdog said in July that competition concerns may see it unwind the deal, which saw Grab pick up and then shutter Uber’s ride-hailing and food delivery business while the U.S. got a 27.5 percent stake in its recent. Competition is also a concern in the Philippines, but the Philippine Competition Commission (PCC) ruled today that Grab will submit to “service quality and pricing standards” in order to ensure consumers are treated fairly.

Singapore and the Philippines have been the most staunch investigators of the deal, so today’s news is a significant boost for Grab, which recently scored $2 billion in funding from Toyota and a range of other investors. Despite the okay, the PCC is keeping a firm eye on the situation after it concluded that “Grab operates as a virtual monopolist.”

The commission said that, post-Uber, Grab has committed to a series of terms that include more consistent and transparent pricing, the removal of exclusivity deals for drivers, and more.

Here is the full list of clauses from the PCC website:

Service Quality Commitment: Grab shall commit to bring back market averages for acceptance and cancellation rates before the transaction, and response time to rider complaints.

Fare Transparency Commitment: Grab will revise its trip receipt to show the fare breakdown per trip, including distance, fare surges, discounts, promo reductions, and per-minute waiting charge (if reinstated by LTFRB).

Commitment on Pricing: Grab shall not have prices that have an “extraordinary deviation” from the minimum allowed fares. Grab will be penalized equivalent to 5% of Grab’s commissions, or up to P2 million, in the identified trips with extraordinary deviation that do not have sufficient justification.

Removal of “See Destination” Feature: Grab will remove “see destination” feature for drivers with low ride acceptance rate.

Driver/Operator Non-Exclusivity Commitment: Grab shall not introduce any policy that will result in drivers and operators being exclusive to Grab. Current Grab drivers/operators are allowed to register/operate under other Transport Network Companies (TNCs) through a multi-homing scheme.

Incentives Monitoring Commitment: Since incentives may result in drivers remaining exclusive to Grab, and thus affect its competitors’ conditions of entry and the ability to expand, the Commission shall monitor and evaluate Grab’s incentives on the basis of mandatory quarterly reports.

Improvement Plan Commitment: Grab will implement the following: (1) enhance driver performance standards, (2) adopt a Driver Code of Conduct, (3) establish a Grab Driver Academy; (4) adopt an emergency SOS feature, help center, and passenger no-show feature; (5) adopt a Passenger Code of Conduct; (6) maintain dedicated service lines subject to prevailing labor regulations; (7) adopt a Driver Welfare Program; and (7) implement a Driver Rewards Program.

The PCC said it will appoint a third-party to monitor Grab’s progress in adhering to these terms, which it hopes will hold the company to account in the same way Uber’s competition did.

“The PCC’s Commitment Decision holds Grab to a standard as if Uber were present in the market. In effect, while Grab operates as a virtual monopolist, the commitments assure the public that quality and price levels that would prevail are those that had been when they still faced competition from Uber. Moreover, the commitments ensure that the merger will not make it more difficult for new players to enter and grow,” PCC Chairman Arsenio M. Balisacan said in a statement.

The pricing component is particularly important.

Since Uber’s departure many users, particularly those in the Philippines, have complained about rising prices on Grab since the exit of Uber. The company previously brushed that concern aside, claiming that it hasn’t increased prices but the differences between its costs and Uber’s are down to an alternative pricing model. In Grab’s case, the company told TechCrunch it has “always maintained a competitive per KM fare with 2.0 surge max.” Uber’s surge, it said, could reach 4X.

That’s been dismissed by many users but those in the Philippines can at least take hope from the fact that their regulator is pushing the issue.

There’s also very legitimate concern that Grab’s position has made it impossible for new entrants to challenge its business.

Indonesia’s $5 billion startup Go-Jek is in the process of expanding its business regionally after it went live in Vietnam this month. The Philippines and Thailand are also on its new market list for 2018. But Go-Jek has had to raise over $1 billion to get its shot, and there’s no guarantee it will replicate its dominance in Indonesia in other countries.

The fact remains that other ride-hailing rivals of scale are near-impossible to find in Southeast Asia even though Grab co-founder Hooi Ling Tan said publicly that “there’s still a lot of existing competition.” In most cases, Grab’s stiffest competition is local market taxi firms, many of which have added app-based bookings to bolster their business.

Grab said in a statement that it has made the commitments voluntarily and that it supports competition:

We are happy that the Philippine Competition Commission (PCC) has recognised the legality of Grab’s deal with Uber in Philippines and accepted Grab’s voluntary commitments. PCC’s pro-innovation approach and forward-looking decision sets a strong example for other regulators examining the Grab-Uber deal, and encourages fair competition and a level playing field that ultimately benefits consumers and drivers. As we move forward to become an everyday app that serves the daily essential needs of people in Southeast Asia, we will continue to stay focused on serving the best interests of our consumers and partners.

Aside from its new funding, which takes the company to $6 billion raised to date and gives it a valuation of $11 billion, Grab has been busy expanding its reach.

The company widened its GrabFood service across the region thanks in no small part to the UberEats, while it is rolling out a revamped version of its app that emphasizes its collection of services not just ride-hailing. Part of that strategy included the launch of a platform that allows third-parties to tap the Grab platform and bring their services into its app. The launch partner for that was food delivery service HappyFresh, which is rumored to have picked up funding from Grab.

Investment is another area where Grab is stepping up. It recently announced Grab Ventures, a division that will handle strategic investments and manage an accelerator program called ‘Velocity.’

Via Jon Russell https://techcrunch.com

[dalepwithchari]

Following Singapore, Philippines regulator forces Grab to delay closing Uber’s app

Buy some great High Tech products from WithCharity.org #All Profits go to Charity

Grab has given the Uber app a stay of execution in yet another market as regulators across Southeast Asia continue to investigate the merger deal announced between the ride-hailing companies last month.

Fresh from extending the closure date a week in Singapore, Grab has done the same in the Philippines, a spokesperson confirmed to TechCrunch. This extension follows an order from the Philippine Competition Commission (PCC) made over the weekend, and it now means that Uber’s app will cease running in the country on April 16.

Elsewhere, Grab shuttered the Uber app in its six other markets in Southeast Asia today as planned, two weeks after the merger deal was confirmed. As for UberEats, that app will live on in the region until the end of May, after which it will be folded into GrabFood.

It appears that Grab didn’t count on Southeast Asia’s being so intent to probe the tie-up.

The Competition and Consumer Commission of Singapore (CCCS) said last month that it had “reasonable grounds” to suspect that the deal may fall foul of section 54 of Singapore’s Competition Act, while the PCC voiced similar concerns last week.

“This move by Uber in the Philippine market leads to further substantial concentration of what is, to begin with, an already highly concentrated ride-sharing market. This virtual monopolization of the market by Grab can harm the riding public,” the organization’s chairman Arsenio M. Balisacan wrote in a statement.

That was countered by Uber, which argued that it is no longer in business in the region.

“Uber exited eight markets, including the Philippines, as of Monday. Now, I look after 10 markets, instead of 18. Our funding is gone. Our people are gone. We don’t intend to come back to these markets,” Brooks Entwistle, head of Uber’s Asia Pacific business, told the PCC at a hearing on Friday, according to Rappler.

If Uber is gone, who will run the app? That’s a valid question raised by the Land Transportation Franchising and Regulatory Board (LTFRB) in the Philippines, which pointed out that consumer safety could be compromised without customer services and other Uber teams.

For now, Grab is stepping up and running the Uber app at its own cost, the company has confirmed. That may keep the lights on, but Grab-operating the Uber doesn’t really address the core issue of the PCC which is competition between two players. On that count, Uber has already left the building.

An excerpt from Grab’s (long) statement to the PCC is below:

Considering that Uber has exited the region on 25 March and clearly stated during the public hearing its incapacity to fund the operations in the Philippines, the parties have agreed to keep the Uber app operational with Grab bearing the costs, to give drivers and consumers time to adjust to Uber’s departure. In the spirit of cooperating with the PCC, Grab has also agreed to continue to bear the costs of the Uber app extension (from March 25 to April 8) until April 15, 2018. Our understanding from the PCC is that this interim arrangement, which was fully explained to the PCC, is not a breach of its Order.

Grab wishes to clarify that, although the Uber app continues to operate, it has limited functionality and little or no support. Grab noted that the LTFRB has expressed concerns pertaining to customer support and safety issues arising from Uber’s limited operations. Grab wishes to stress that this interim arrangement is only for the purposes of satisfying what the PCC appears to require until Grab is able to discuss with the PCC.

We hope that the PCC will sit with the parties to hear their sides and give a fair assessment of the concerns expressed by both parties and that any other action taken would take into account the practical hurdles that may lie across the parties’ paths.

The full read — for those who like regulatory filings and responses to them — can be found here.

[Read More …]

Following Singapore, Philippines regulator forces Grab to delay closing Uber’s app

[abckidstvyara]

Following Singapore, Philippines regulator forces Grab to delay closing Uber’s app

Following Singapore, Philippines regulator forces Grab to delay closing Uber’s app

Grab has given the Uber app a stay of execution in yet another market as regulators across Southeast Asia continue to investigate the merger deal announced between the ride-hailing companies last month.

Fresh from extending the closure date a week in Singapore, Grab has done the same in the Philippines, a spokesperson confirmed to TechCrunch. This extension follows an order from the Philippine Competition Commission (PCC) made over the weekend, and it now means that Uber’s app will cease running in the country on April 16.

Elsewhere, Grab shuttered the Uber app in its six other markets in Southeast Asia today as planned, two weeks after the merger deal was confirmed. As for Uber Eats, that app will live on in the region until the end of May, after which it will be folded into Grab Eats.

It appears that Grab didn’t count on Southeast Asia’s being so intent to probe the tie-up.

The Competition and Consumer Commission of Singapore (CCCS) said last month that it had “reasonable grounds” to suspect that the deal may fall foul of section 54 of Singapore’s Competition Act, while the PCC voiced similar concerns last week.

“This move by Uber in the Philippine market leads to further substantial concentration of what is, to begin with, an already highly concentrated ride-sharing market. This virtual monopolization of the market by Grab can harm the riding public,” the organization’s chairman Arsenio M. Balisacan wrote in a statement.

That was countered by Uber, which argued that it is no longer in business in the region.

“Uber exited eight markets, including the Philippines, as of Monday. Now, I look after 10 markets, instead of 18. Our funding is gone. Our people are gone. We don’t intend to come back to these markets,” Brooks Entwistle, head of Uber’s Asia Pacific business, told the PCC at a hearing on Friday, according to Rappler.

If Uber is gone, who will run the app? That’s a valid question raised by the Land Transportation Franchising and Regulatory Board (LTFRB) in the Philippines, which pointed out that consumer safety could be compromised without customer services and other Uber teams.

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PCC to boost enforcement activities amid M&A review suspension

#PHnews: PCC to boost enforcement activities amid M&A review suspension

MANILA – The Philippine Competition Commission (PCC) will intensify its enforcement activities after the newly passed Bayanihan to Recover as One (Bayanihan 2) Act suspended the merger and acquisition (M&A) notification and review of the antitrust body.

 Under the Bayanihan 2, compulsory notification for M&A transactions amounting to less than PHP50 billion will be exempted, while also suspending PCC’s exercise of motu propio review of M&A transactions for a period of one year.

 In a statement Monday, PCC said that despite the suspension of these activities of its Merger and Acquisition Office under the new law, it will do its part as antitrust authority by protecting the people from anti-competitive behavior in the market such as cartels, monopolies, and combinations in restraint of trade that affect the supply, distribution, and movement of essential goods and services.

 “The PCC is intensifying enforcement activities to scan the market for anti-competitive agreements and abusive practices that harm the Filipino people,” the Commission said.

 In July, PCC chair Arsenio Balisacan expressed concern over restricting the Commission’s enforcement of the Philippine Competition Act (PCA) to preserve fair market competition.

 Balisacan then noted that competition policy enforcement remains relevant during the pandemic that will protect consumers from abusive anti-competition behavior.

 He added acquisition of a failing firm by another company is not prohibited provided it is the lone feasible solution to save the business.

 “The PCC will work even harder to ensure that consumer welfare and competition are safeguarded especially at a time when consumers and small businesses are more vulnerable to unscrupulous business practices. Rest assured that the PCC will exert all efforts to protect competition in the present for the future,” the Commission said.

 Under the PCA, the antitrust body reviews M&A deals of companies with transaction value of at least PHP6 billion for the Size of the Person, and PHP2.4 billion for the Size of Transaction. (PNA)

     ***

References:

* Philippine News Agency. "PCC to boost enforcement activities amid M&A review suspension." Philippine News Agency. https://www.pna.gov.ph/articles/1115363 (accessed September 14, 2020 at 11:51PM UTC+14).

* Philippine News Agency. "PCC to boost enforcement activities amid M&A review suspension." Archive Today. https://archive.ph/?run=1&url=https://www.pna.gov.ph/articles/1115363 (archived).

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PCC flags anti-competition provisions in stimulus bills

#PHnews: PCC flags anti-competition provisions in stimulus bills

MANILA – Philippine Competition Commission (PCC) Chairman Arsenio Balisacan has identified some provisions in the stimulus package bills that may restrict the enforcement of the Philippine Competition Act (PCA) to preserve fair and healthy market competition.

 In an online seminar of Ateneo de Manila University Department of Economics on Wednesday, Balisacan said the provision on regulatory relief for business entities under the Accelerated Recovery and Investments Stimulus for the Economy (ARISE) bill in the House of Representatives and some provisions in the Bayanihan to Recover as One Act (BARO) bill in the Senate limit the mandate of the PCC.

 Balisacan said ARISE bill requires the PCC to desist from imposing fines and other monetary penalties, requires submission by parties to proceedings such as fact-finding and preliminary inquiries, and issuing show cause order, cease and desist order, subpoena, statement of concern or similar statement and other similar issuances.

 The BARO bill, on the other hand, requires moving of statutory deadlines and immediate action on all pending applications, particularly involving mergers and acquisitions (M&As) and joint ventures.

 Balisacan further said the enforcement of competition policy amid the pandemic is crucial to avoid anti-competition behavior and protect consumers from abusive anti-competition behavior.

 “Competition policy enforcement remains relevant during the pandemic, even more so on the way to recovery and building a resilient economy,” he said. 

 Balisacan said the PCA has built-in flexibility to undertake M&A applications quickly, but the antitrust body has to study these filings to ensure that market competition will be maintained.

 “Acquisition of a failing firm by another firm is not prohibited provided that is the only feasible solution to save the failing firm,” he added. 

 Balisacan said the market dominance level in the Philippines is already high, and anti-competitive policies may only promote abuse of dominance.

 Moreover, as more M&As will likely happen during or after the pandemic, lawmakers said PCC might be overwhelmed with M&A cases.

 Balisacan said there is a small number of mandatory notifiable cases but potentially harmful to consumers and competitive processes therefore, the need for the PCA enforcement.

 The PCC has also expedited merger rules for easy cases and provided exemption rules for public-private partnerships and joint ventures while offering pre-notification consultations, he said.

 “Suspending PCA enforcement during the crisis can exacerbate the harm to consumers, and is bad for inclusive recovery and sustainable economic development,” he added. (PNA)

   ***

References:

* Philippine News Agency. "PCC flags anti-competition provisions in stimulus bills." Philippine News Agency. https://www.pna.gov.ph/articles/1108377 (accessed July 09, 2020 at 03:31AM UTC+14).

* Philippine News Agency. "PCC flags anti-competition provisions in stimulus bills." Archive Today. https://archive.ph/?run=1&url=https://www.pna.gov.ph/articles/1108377 (archived).

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PCC hikes minimum value for mandatory merger review

#PHnews: PCC hikes minimum value for mandatory merger review

MANILA -- The Philippine Competition Commission (PCC) has raised the minimum value for businesses to notify the antitrust body on their merger and acquisition (M&A) deals.

The Commission decided to increase the mandatory M&A threshold to PHP6 billion from PHP5.6 billion for the Size of the Person (SoP), and to PHP2.4 billion from PHP2.2 billion for the Size of Transaction (SoT).

This is effective on March 1, 2020.

Under its Memorandum Circular No. 18-001, the PCC annually reviews notification thresholds to consider the country’s current size of actual notifications, gross domestic product, and inflation.

“Adjustment of the thresholds ensures that potentially anti-competitive M&As are subject to compulsory notification and review, while those that are less likely to pose competition concerns are excluded,” PCC chairperson Arsenio Balisacan said in a statement Monday.

Balisacan said raising the thresholds for mandatory review allows the Commission to “efficiently use its resources” to other competition enforcement elements, such as conducting cartel investigations, market monitoring, and motu proprio merger review, or studying a merger and acquisition transaction on its own initiative.

PCC reviews merger and acquisition transaction in terms of size of the person, or checking if one of the parties involved in the deal breached the threshold based on assets or revenue in the local market.

The size of transaction is based on the aggregate value of the acquiring assets.

The Commission said it received a total of 207 transactions amounting to PHP3.6 trillion.

The PCC approved 192 of the deals and blocked one transaction. (PNA)

  ***

References:

* Philippine News Agency. "PCC hikes minimum value for mandatory merger review." Philippine News Agency. https://www.pna.gov.ph/articles/1094047 (accessed February 18, 2020 at 05:02AM UTC+14).

* Philippine News Agency. "PCC hikes minimum value for mandatory merger review." Archive Today. https://archive.ph/?run=1&url=https://www.pna.gov.ph/articles/1094047 (archived).

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Grab abides by PCC’s order, riders to get credit refund starting Dec. 31

#PHinfo: Grab abides by PCC’s order, riders to get credit refund starting Dec. 31

      Philippine Competition Commission Chair Arsenio M. Balisacan (FILE PHOTO)

QUEZON CITY, Dec. 27 (PIA)—Grab, a ride sharing company is set to credit refunds to close to 3 million GrabCar riders  starting December 31, 2019.

This, after the Philippine Competition Commission (PCC) slapped Grab close to P40-million in fines for its failure to comply with its price commitments.

The total P5 million penalty will be distributed proportionately to those who took Grab rides in Metro Manila from Feb. 10 to May 10. The P14 million penalty will be distributed to those rode Grab from May 11 to Aug. 10, Grab said.

“Grab will abide by the PCC’s order to pay the P23.45 million fine, of which P5.05 million will go to our consumers. In recognizing the value of tens of thousands of driver-partners, the entire fine will be borne solely by Grab, the company as any other fines that have been imposed in the past and in any of our markets,” said Grab Philippines president Brian Cu in a statement.

According to PCC, the estimated 3 million passengers who booked Grab rides from February to May 2019 will be entitled to a refund based on the total spendings they amassed during this period. They will receive their refunds through their respective GrabPay wallets, and the amount will range anywhere from under a peso to over P100.

The PCC has imposed a fine of P16.15 million on Grab Philippines for violating its price and service quality commitments during the 4th quarter of the initial undertaking, marking the completion of PCC’s first year of monitoring Grab on its voluntary commitments.

The Commission Order released recently comes on the heels of the audit report submitted by Smith & Williamson, an independent monitoring trustee tasked to examine Grab’s compliance with its voluntary commitments on price, service quality, and non-exclusivity for one year or until August 10, 2019.

The fine is the latest in a string of penalties faced by Grab for violating its commitments. Each violation incurs an administrative penalty ranging from P50,000 to P2 million as provided by the Philippine Competition Act. With the merger of the country’s two biggest ride-hailing apps, Grab’s violations are indicative of its exercise of market power in the absence of a competitor of adequate scale in the market.

For the fourth leg of the initial undertaking, PCC imposes a fine P14.15 million for Grab’s extraordinary deviation on its pricing commitment, and P2 million for exceeding driver cancellations at 7.76% instead of the committed 5%.

Refund to riders

For violating its pricing commitments to PCC, Grab was earlier fined P11.3 million in the first quarter; P7.1 million in the second quarter; and P5.05 million in the third quarter. Fines for the third and fourth quarters will be refunded to qualified Grab riders.

Passengers who availed of Grab’s service between May 11 to August 10 this year, or the 4th quarter of the initial undertaking, shall expect the rebate within 60 days through GrabPay credits.

PCC underscores that the disgorged amount shall be paid by Grab and shall not be passed on to its drivers or riders.

“The ride-hailing market has seen profound changes in the past year as a result of Grab’s acquisition of Uber. With the commitments in place, PCC aims to maintain pre-transaction market conditions and will discipline any tendency to exercise monopolistic power with corresponding penalties,” said PCC Chair Arsenio M. Balisacan.

PCC price range vs LTFRB fare structure

Grab’s pricing commitment to PCC is separate and independent from the fare structure of the Land Transportation Franchising and Regulatory Board (LTFRB). While LTFRB has imposed a fare matrix for all transport network vehicle services, the PCC binds Grab to its voluntary commitments, including keeping its fares within a range as if a competitor like Uber were present in the market.

As such, PCC fines Grab for fares that deviated from its pricing commitments to the Commission, even if the same is not considered overcharging based on the fare matrix imposed by LTFRB.

As the initial undertaking lapsed, PCC found that there remains insufficient competition in the ride-hailing market. On October 31, Grab signed a new set of voluntary commitments as a continuing condition for the antitrust authority’s clearance of Grab’s acquisition of Uber in the Philippines in 2018.

The Commission also looks to other players that can sufficiently complete with the current dominant firm in the ride-hailing market.

“More than a year after the Grab-Uber merger, the PCC instituted these measures to address the persistent impact of a virtual monopoly in this sector.  The game-changer, however, will come in the form of a new player with strong financial muscle to enter the ride-hailing market and an environment that allows existing players to grow. Until then, the commitments stand for the benefit of the riding public,” Balisacan added. (PCC/PIA-NCR)

  ***

References:

* Philippine Information Agency. "Grab abides by PCC’s order, riders to get credit refund starting Dec. 31." Philippine Information Agency. https://pia.gov.ph/news/articles/1032064 (accessed December 27, 2019 at 03:22PM UTC+08).

* Philippine Infornation Agency. "Grab abides by PCC’s order, riders to get credit refund starting Dec. 31." Archive Today. https://archive.ph/?run=1&url=https://pia.gov.ph/news/articles/1032064 (archived).