The Filipino Obsession with the iPhone While Not Knowing What FDI Really Means

Interaksyon

I was running out of ideas until I saw iPhones on the Facebook feeds. Right now, I'm indirectly invested in Apple stocks via the ATRAM Global Technology Feeder Fund and recently, the ATRAM Global Opportunity Feeder Fund. ABS-CBN News reports that scores queue for iPhone 15 release. This was just the introduction of the whole event:

Around 200 people queued outside an Apple Premium Partner store at a mall in Makati City on Friday, with some even having spent the night lining up, so they could be among the first to get their hands on the latest iPhone model.

Accessories worth several thousand pesos were given to the first 300 individuals who purchased the iPhone 15 before dawn.

Now, I'd like to also present this part about Filipinos and the iPhone craze:

Krisel Loreto, the marketing manager of Power Mac Center, said they host the giveaway annually to help patrons “make the most of their investment.”
“We all know iPhone comes with a hefty price. We do events such as this because we want this moment to be memorable,” Loreto said.
“A lot of our customers really save up and exert effort to buy the latest iPhone. They invest their savings. We want to invest in such events where they will get more than what they are paying for," she said.
"The iconic giveaway is done during the 'ber' months, we want to play a part in making their Christmas special.”

This reminds me of how Christmas runs so long in the Philippines, perhaps even in the rest of the world. As a Filipino, I'm not proud of it since it tends to highlight the Philippine culture of party mentality. Yes, it's Christmas but soon enough it will become an unhappy new year for those buried in so much debt (read here). The way Ms. Loreto says it is that the customers invest their savings, save up, and exert effort to get the latest iPhone. This also reminds me of how people tend to drain their paychecks so fast (read here). I wouldn't be surprised if there were some who actually borrowed money just to get an iPhone 15, instead of using excess money. Knowing how people tend to waste their money on payday can be irritating and funny at the same time. As the question in Tagalog goes, "Meron kang iPhone pero may ipon ka ba?" In English, it means, "You have an iPhone but do you have savings?"

The irony is that many Filipinos obsess over the latest iPhone model but don't know how FDI really works

Maybe, I should've gone out there and talked about how FDI can benefit the Philippines. I could go ahead and talk about how Communist Vietnam with its Apple factories. I could talk something this, "Vietnam has an iPhone factory. Can you imagine if the Philippines had an Apple factory if it wasn't for that lousy Filipino First Policy? We should get rid of the 60-40 policy and allow FDIs to own 100% of their equity here, without the need of a Filipino partner." I can expect a lot of contradictory reactions that I can expect to hear. It's because I can expect that a lot of people are buying iPhones just to look cool rather than because they want it. In short, it can be very frustrating to discuss basic economics with an overspender (read here).

What are the reactions I can expect? There are so many reasons that it's hard to keep track. However, I can give some dumb reasons that might be written via their brand-new iPhones (Oh, how ironic!):

"But the Philippines is not this or that country!"
"But only FDIs will get rich when you let them invest in the Philippines!" (Read rebuttal here)
"But letting FDIs invest here will mean there will be no jobs for Filipinos!" (Read rebuttal here)
"Foreign investors are invaders! They will invade the country and destroy our sovereignty!" (Read rebuttal here)
"We need more wage increase, not more FDIs!" (Read rebuttal here)
"No to foreign imperialism! Filipino Pride!" (Read rebuttal here)

It should be ironic that people who oppose 100% FDi are using iPhones to share those bogus ideas I just shared. If they were so "nationalistic" as they claimed then why aren't they using any proudly Filipino-made phones? The truth is they don't exist but they might exist if the Philippines didn't indulge in Filipino First Policy! Those Power Mac Center stores are already FDI in some shape or form. However, the Philippines still has a huge clutter of excessive restrictions with FDI. It's one thing to practice the late Lee Kuan Yew's restrictive inflow and outflow of capital. It's another thing to require FDIs to only own up to a certain percentage such as the 60-40 rule. I even wonder if people posting those comments realize that the Power Mac Center stores are all part of an MNC, to begin with? Those Power MAC Center stores are FDIs already. However, I think Apple can't build a factory yet in the Philippines due to the negative list, which the Senate should prioritize now!

I wouldn't be surprised if a lot of those anti-FDI pages on Facebook are managed by iPhone users. That would be super ironic since, as said, Power MAC Center stores are part of MNCs. For all I know, maybe a good number of people running the IBON Foundation are now camping to buy their iPhone 15s. Maybe, that bratty administrator (and his peers) are all lining up to get an iPhone 15 if ever they're paid to write their propaganda. Maybe, some members of Bayan Muna, Kabataan Partylist, Kilusang Mayo Uno, and the League of Filipino Students are lining up. Maybe, Carwyn Candila of the League of Filipino Students, or former representative Sarah Jane I. Elago, are also hypocritically lining up to get an iPhone 15. Candila and Elago both renounced 100% FDI ownership of public service utilities as "foreign imperialism".

What they need to realize is that FDI means letting MNCs invest in the Philippines. 100% FDI equity means that they don't need to find a Filipino partner. What happens is that FDIs will do business in the Philippines provided they follow rules. Just because they don't have a Filipino private partner doesn't mean that they can do what they want. They will still need to go to the City Hall to register, they will still need a Filipino lessor (and I for one am not for foreigners buying land), and they will still need to go to the BIR to get registered. When I enter any non-Filipino-owned establishment, receipts are still issued and there's still the "Please ask for a receipt." notice. The BIR would still tax-map these stores and collect VAT (since MNCs will earn more money eventually), quarterly tax, and Annual Income Tax. These MNCs would still need to pay their withholding taxes and other related taxes.

The same can apply to Apple. If Apple could be allowed by the law to also build a manufacturing firm without a Filipino shareholder, it would be more advantageous. Communist Vietnam doesn't have those annoying excessive ownership restrictions. Hopefully, economic charter change will be possible to remove all unnecessary restrictions or remove the negative list entirely.

Comments

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