BIZ BUZZ: Market woes beyond Trump tariffs

Even before the tariff bombshells dropped by United States President Donald Trump on friends and foes alike, something has been bugging some capital markets veterans.

We’re talking about one particular provision in the proposed Capital Markets Efficiency Promotion Act (CMEPA). The bill has been passed by the Bilateral Conference Committee and is only awaiting the signature of President Marcos. And whether he signs it or not, it will lapse into law by July 1.

Many parties don’t doubt that CMEPA, in general, will be good for the markets. However, there are concerns about a particular provision that subjects foreign corporations to a 25-percent tax when they buy dollar-denominated bonds carved out of the Philippines.

At present, when local corporations and financial institutions issue dollar-denominated bonds, their offshore buyers are tax-free. But once the tax exemption is removed, issuers will have to pay more premium to make their investors whole, one banker said.

“In short, our cost of borrowings will spike. So how can we grow and diversify our sources of funding?” the source lamented.

It’s no wonder that corporations with forthcoming foreign debt maturities in the next few years are now scrambling to raise money, our source said. Even those who don’t have maturities have likewise issued offshore bonds to get ahead of such “tax complication,” it was pointed out.

While the intention is to level the playing field, will it instead backfire against Philippine issuers?

“It will be deterrent to our growth,” the banker argued.

What they are hoping for is for Mr. Marcos to strike out that lone provision and allow the continued tax exemption of foreign investors. They have no qualms with the rest of the reforms espoused by CMEPA.

Especially at this time of heightened volatility in the global markets, it’s one of those Trump-proofing support they are pleading for. —Doris Dumlao-Abadilla

Nintendo eShop coming to town

Filipino gamers, it’s time to press “start” on a whole new gaming era!

After years of being left out in the cold, Nintendo has finally decided to let the Philippines join the game, officially launching the Nintendo eShop alongside the much-anticipated Nintendo Switch 2 console between July and September this year.

Nintendo made the long-awaited announcement through its official Southeast Asia Facebook page on Tuesday night, confirming that Filipino gamers will soon have official access to the Nintendo eShop.

For years, Filipino Nintendo fans were unable to fully enjoy the ecosystem without sneaky workarounds.

But that’s about to hit the game-over screen—no more will gamers be forced to create US or Japan accounts just to access Nintendo’s digital store.

Local gamers can also expect local pricing and easier payments without surprise foreign currency charges.

Nintendo hasn’t dropped all the details yet: pricing, payment methods and exact launch dates are still under wraps.

READ: Nintendo Switch 2 launches in June with new Mario Kart World game

But with this long-overdue update, it’s safe to say that Nintendo has finally unlocked the Philippines as an official player.

After years of waiting, Filipino gamers can finally say, “It’s-a me,” officially!

Still, while the eShop launch is a win, local gamers might have to shell out extra coins for their favorite games given the government’s new 12-percent tax on digital services. —Alden M. Monzon