Top Story of the Week: More Business Missions To Philippines
LOOKING AHEAD:
- The Council will be holding a Roundtable Discussion with Atul Keshap, U.S. Senior Official for APEC and Primary Economic Advisor to the Assistant Secretary of State for East Asia and Pacific Affairs on Tuesday 22nd January from 3:30PM-4:30PM. The event will be held at Proctor & Gamble, The Boardroom, 21st Floor, 6750 Ayala Avenue Officer Tower, Ayala Center, Makati City. Please click here to RSVP. For more information please contact Evelyn Mariano at emariano@usasean.org or Danielle Fumagalli at dfumagalli@usasean.org.
- The US-ASEAN Business Council is co-sponsoring the upcoming Joint Foreign Chamber (JFC)'s second anniversary forum of Arangkada Philippines entitled Realize the Potential!, on February 26, 2013 in the Rizal ballroom of the Makati Shangri-La Hotel, from 8:30 am to 2:30 pm. The forum has invited President of the Philippines, H.E. Benigno S. Aquino III and Chief Justice Sereno as keynote speakers. If you are interested in the forum and would like to register, please go to arangkadaphilippines.com/forumor arangkadaforum.eventbrite.com Alternatively, you may want to send the attached registration to Lealou Algenio at lsalgenio@teamasia.comand forum@arangkadaphilippines.com or fax to + (63) (2) 757 - 3510 or 11. Regular registration (Jan 14, 2013 - Feb 19, 2013) is P3,600 (approx. USD $89) and Late/On-Site registration (Feb 20, 2013 - Feb 26, 2013) is P4,000 (approx.. USD $99).
DepEd Slates Proficiency Tests For Elementary, High School Students, Teachers, Manila Bulletin, Jan 07
The Department of Education has scheduled nationwide tests to determine the readiness of elementary and high school students to go the next level of education and to determine the proficiency of teachers in English, Science and Mathematics. The National Education and Testing Research Center (NETRC) will administer the National Achievement Tests (NAT) nationwide in public and private schools in March. The NAT for fourth year high school students will be held on March 6, for Grade 3 students in public and Madrasah schools on March 12, and for Grade VI pupils on March 13, the DepEd said.
'Weak' Amla threatens PHL economic gains, Business Mirror, Jan 07
The economic gains of the Aquino administration may be imperiled by the absence of a stronger anti-money laundering law as proposed by Senate Bill (SB) 3123, a senator said on Monday, as he urged other lawmakers to support the passage of the bill. In a statement, Sen. Teofisto "TG" Guingona III cited an International Monetary Fund (IMF) report dated December 14, 2012, which he said "validates the urgency" of passing SB 3123 which strengthens the Anti-Money Laundering Act (Amla) by expanding its covered institutions, among other things.
2012 dollar reserves hit new high of $84.2-B, Rappler, Jan 07
The Bangko Sentral ng Pilipinas (BSP) disclosed that the country's gross international reserves (GIR) hit a record high of US$84.248 billion in 2012. BSP data showed that the country's GIR was higher by $8.9 billion or 11.8% than 2011's $75.3 billion. "The end-December 2012 GIR level can cover 12.1 months worth of imports of goods and payments of services and income. It was equivalent to 10.5 times the country's short-term external debt based on original maturity and 5.8 times based on residual maturity," the BSP said. The BSP attributed the increase in the GIR to higher deposits by the national government and the Power Sector Assets and Liabilities Management (PSALM) Corporation from their bond issuances and other borrowings. The Central Bank also said the increase in the GIR stemmed from higher inflows from its foreign exchange operations and investment income.
Full-year inflation of 3.2% lowest in 5 yrs, PhilStar, Jan 05
The nationwide inflation rate edged up to 2.9 percent in December, bringing the full year average to its lowest level in five years at 3.2 percent, the National Statistics Office (NSO) reported yesterday. The December result was within the BSP's forecast range of 2.6 percent to 3.5 percent for the month. The full year figure, on the other hand, hit BSP's revised 2012 outlook of 3.2 percent and fell within the official target of three percent to five percent. The full year figure was also the lowest rate since the 2.9 percent recorded in 2007.
A new industrial policy for the Philippines - Part 1, Business World, Jan 06
In its quest for industrialization, the postwar Philippine economy adopted a complex array of protective policies through high tariffs, quantitative restrictions and regulatory controls on prices, domestic supply, and market entry. However, after more than three decades of protectionism and import substitution, the policies failed to provide an efficient mechanism for allocating domestic resources in the economy. Beginning in the 1980s, the Philippine government was prompted to implement policy reforms consistent with the requirements of a competitive market environment. Manufacturing was liberalized by removing tariff and non-tariff barriers. Foreign investment rules were relaxed and a new Omnibus Investment Code was legislated to simplify the investment incentive system. To promote export-oriented investment, the Philippine Economic Zone Authority (PEZA) was created, along with development of the Clark and Subic military reservations into special economic zones. Since 2004, no major unilateral tariff changes have been made; mostly the tariff reductions carried out were those covered by the ASEAN Free Trade Area-Common Effective Preferential Tariff (AFTA-CEPT) scheme along with other free trade agreements (FTAs) of the Philippines such as the Japan-Philippines, ASEAN-Korea, and the ASEAN-China.
LACK OF STRUCTURAL TRANSFORMATION AND DIVERSIFICATION
Despite the breadth and depth of market-oriented reforms, the impact on the growth, employment, investment, and productivity of the manufacturing industry has been limited as the performance of the overall manufacturing industry has been weak. There has been no structural transformation of the economy from agriculture to manufacturing, no rapid industrial growth led by manufacturing. Instead, as Fabella and Fabella (2012) highlighted, development progeria (premature aging) characterized the Philippine economy. This is manifested by the rise in the share of services and fall in the share of industry and manufacturing sectors. A new industrial policy for the Philippines - Part 2, Business World, Jan 13
Around the world, growth patterns and sources of competitiveness are changing dramatically with emerging economies becoming key players as the United States (US), the European Union (EU) and Japan continue to face slow growth. Given the opportunities and challenges that the global picture poses, firms must be able to formulate their strategies from this global perspective to adapt to changing market trends. The government needs a strong, diversified, inclusive and sustained growth model where the industrial sector plays a key role in generating investment, employment, and innovation. To lay the foundations that would allow manufacturing to become a major growth driver, it must be transformed and upgraded. .Domingo Sees 7% GDP Growth, Manila Bulletin, Jan 13
Trade and Industry Secretary Gregory L. Domingo forecasts a 7 percent GDP growth in 2013 saying the gains of 2012 would be sustained by the expected influx of new foreign investments, implementation of huge infrastructure projects, improved consumer spending and improved exports. Early in 2012, Domingo projected the GDP for that year to hit over 7 percent making him the most optimistic Aquino Cabinet member. The government projected GDP in 2012 to reach 5-6 percent and 6-7 percent in 2013.
Firms seen as less bullish, Business World, Jan 13
FEWER JAPANESE firms in the Philippines are expecting to increase profits in 2013 compared to last year, a survey from the Japan External Trade Organization (JETRO) said. JETRO surveyed 115 Japanese firms in the Philippines between October and November 2012 in its annual Survey of Japanese-Affiliated Companies in Asia and Oceania. The survey tapped 71 manufacturing firms and 44 non-manufacturing companies operating in the Philippines. Majority of the firms surveyed were large firms. JETRO surveyed 3,819 firms in 20 economies across Asia including Hong Kong and Taiwan. Based on the survey, JETRO said 42% of Japanese firms in the Philippines expect to increase profits in 2013, 44.6% expect profits to remain the same and 13.4% said profits will be reduced.American Lawmaker assures DFA of strong US-Phl ties, philstar, Jan 18
The new chairman of the US House Committee on Foreign Affairs has assured the Philippines of Washington's commitment to a strong alliance with Manila. In a statement, the Department of Foreign Affairs said Secretary Albert F. del Rosario met with Rep. Ed Royce who was recently appointed as the chairman of the United States House Committee on Foreign Affairs on January 15.
The Philippines-Japan's Strategic Partnership, Manila Bulletin, Jan 15
Japanese Foreign Minister Fumio Kishida visited the Philippines on January 9-10, 2013, in his first four-country foreign trip that included Singapore, Brunei, and Australia since his appointment by Japan's newly elected Prime Minister Shinzo Abe. He first visited the Philippines in 2008, as Japan's then-Minister for Science and Technology Policy.
More Business Missions To Philippines, Manila Bulletin, Jan 16
The Philippines is experiencing a record number of inbound business missions. The Board of Investments (BOI) recorded a total of 487 inbound business corporation visits from January to October, 2012 - 147 individual company visits and 34 multi-company delegation missions. The Department of Trade and Industry expects the visit of more business missions from six countries - Germany, Sweden, Italy, England, Turkey, and France - to explore investment opportunities to help attain the goal of R300 billion investments this year. The six are on top of traditional investment sources such as Japan, South Korea, and Taiwan. The increase in inbound missions is attributed to transparency and dynamism of the Aquino Administration, and the confidence of foreign investors. The Philippines is among the world's booming markets; international credit ratings agencies upgraded its rating to an investment grade, citing a steady growth pace. There is also renewed interest from the United Kingdom (UK), France, and Canada, and growing interest in non-traditional markets like Russia, Turkey, Middle East (Oman, Iran, Qatar, Kuwait, Abu Dhabi), and Nigeria.
Business community to lawmakers: Complete key reforms bills before embarking on election campaign, InterAksyon, Jan 15
The business community has called on legislators to pass key economic reform bills before the 15th Congress goes on break for the mid-term elections. The country's most prominent business orgainzations on Tuesday said there is a "growing reform momentum in the Philippines," which could be sustained if Congress would approve pending bills within its remaining three-week session starting on January 21. The following measures already passed the House and are awaiting Senate action:
Hillary Clinton awarded Philippine Legion of Honor, Business Mirror, Jan 16
THE country awarded US Secretary of State Hillary Rodham Clinton the Philippine Legion of Honor in simple ceremonies at the US State Department in Washington, D.C., on Tuesday. Foreign Secretary Albert F. del Rosario conferred the award in behalf of President Aquino. Expressing appreciation for the honor, Clinton reaffirmed the US government's commitment to strengthen the Philippines's defense capabilities.
World Bank sees over 6% PH growth until 2015, Rappler, Jan 16
Strong domestic demand is expected to continue driving the Philippine economy and maintain its position as one of the fastest growing economies in the East Asia and the Pacific (EAP) region this year until 2015, according to a World Bank report released on Wednesday, January 16. In its latest Global Economic Prospects, the multilateral lender said the Philippines is expected to post an average growth of 6.3% from 2013 to 2015.
Sticks and Stones: Reining in Filipino Libel Laws, The Diplomat, Jan 16
The inclusion of online libel in the Philippine anti-cybercrime law has raised fears that it would lead to the restriction of free speech and expression in the local internet community. It's one of the issues to be discussed next week by the Supreme Court, which is set to hear oral arguments in relation to more than a dozen petitions questioning the constitutionality of the controversial new law. Inevitably, lawyers will have to review the country's libel law which is criticized by media groups as being too repressive and excessive.
Philippines Rises 10 Notches In Freest Economies Ranking, Manila Bulletin, Jan 14
Malacañang welcomed yesterday the country's improvement in the 2013 Index of Economic Reform of US-based The Heritage Foundation after the Philippines improved by 10 notches from last year's rating. This prominent international evaluation shows continued improvement in the business of governing our country," Presidential Spokesman Edwin Lacierda said. "We take this as an affirmation of the goals we have set out to achieve and a recognition of how far we have gone to realize the potentials of our people and country," he added.
Education and the economy, Business Mirror, Jan 15
TO make the economy grow in a sustained way, invest in human capital beginning with basic education. That's the long view on the close connection between the economy and education offered by National Economic and Development Authority (Neda) Deputy Director General Emmanuel F. Esguerra, and it makes eminent good sense. Developing the skills of the country's youth population will address the prevailing mismatch between jobs and skills, according to the Neda official. This, in turn, will allow the national government to attain its goal of inclusive growth.
SEC says foreign ownership rules may be morel liberal, ABS -CBN, Jan 11
The SEC said that's because of an entry of judgment -- or a clarification -- issued by the Supreme Court. On October 15, the Supreme Court appeared to say that the rule on foreign ownership in the telco, media and other industries applies to all types of shares of stock. That would make it very difficult for companies to design ways to allow more foreign investment while complying with the constitutional rules. But the SEC now says it recently received an entry of judgment -- or clarification -- from the Supreme Court that says the rule applies only to voting shares.
PNoy hails PH growth in 2012, ABS-CBN, Jan 11
President Aquino hosted the annual vin d'honneur in Malacañang on Friday. In his speech, Aquino expressed confidence the programs started by his administration in 2010 will yield more positive results this year. He also thanked the diplomatic corps for its solidarity with Filipinos during times of disaster. "I believe we have plenty of reason to greet 2013 with optimism-that the path we have chosen to tread in the last two and a half years will continue to yield positive results for our nation and our region," he said. "Though many challenges confront us, we know that, with the Filipino people on our side and with the support of partners overseas, we can make greater strides.
Hike interest rates to cub peso, Business Mirror, Jan 10
The Bangko Sentral ng Pilipinas (BSP) may start to reverse its loose monetary policy and begin to increase record- low interest rates within the first two quarters of 2013 as domestic-driven inflationary pressures mount on strong economic growth, a visiting economist said on Thursday. Michael Spencer, Deutsche Bank AG chief economist for Asia Pacific, told reporters in a media briefing that the BSP may raise rates three times this year and another three times in 2014 for an estimated increase of up to 150 basis points as the economy risks "overheating.Spencer said higher rates could see the Philippine peso appreciate to P38 against the US dollar for a full-year gain of above 7 percent. He said this might strengthen further to P36.5 in 2014.
Analysts claim economy headed for a banner year, Business World, Jan 07
THE PHILIPPINE economy is headed for banner growth this year, First Metro Investment Corp. (FMIC) and the University of Asia and the Pacific (UA&P) yesterday claimed, with the stock market set for new highs, interest rates to stay low and inflation to remain benign. Gross domestic product (GDP) growth will likely hit 7.5-8% this year, economist Victor A. Abola yesterday said in a joint UA&P and FMIC briefing, given "heavy election spending, increased infrastructure projects, robust consumer and services sectors and stronger tourism and gaming industries." Aquino gov't falls short of jobs, spending targets, Rappler, Jan 07
The Aquino administration has fallen short of its employment generation target of a million per year, while its public spending ratio continued to slide. In the Socioeconomic Report (SER) 2010-2012 released by the National Economic and Development Authority (NEDA), the agency said the administration was only able to create an average of 997,000 jobs per year. Its spending, on the other hand, was equivalent to about 12.8% of the country's gross domestic product (GDP) in 2012, lower than the 13.1% recorded in 2011, and 13.6% in 2010. "To catch up with the targets in the PDP [Philippine Development Plan], the government will continue to partner with the private sector in developing the industry and services sector," the SER said.
P3.5-B released for education aid program, Business World, Jan 07
THE BUDGET department released P3.5 billion for education aid under a project jointly spearheaded by pension funds Government Service Insurance System (GSIS) and the Social Security System (SSS). In a statement yesterday, the department said that the abovementioned amount was released to the SSS in fulfillment of the government's counterpart funding for the GSIS-SSS Educational Assistance Fund Program (EAFP).
Comelec to set up checkpoints all over PH, Inquirer News, Jan 08
Six days before the start of the five-month election period on Sunday, the Commission on Elections (Comelec) has ordered the installation of checkpoints in all cities and towns across the country to ensure the strict implementation of the gun ban. The total gun ban, which takes effect from Jan. 13 to June 12, covers everyone, except those from government agencies that are given an automatic exemption by the election body. Palace defends DSWD 'anti-epal' campaign, Inquirer News, Jan 08
Malacanang on Monday defended the Department of Social Welfare and Development (DSWD) from criticism that it was allotting P10.5 million for its campaign against "epal'' or credit grabbers. Undersecretary Abigail Valte said the P10.5 million was the entire budget
of the social marketing service that leads DSWD's advocacy to apprise beneficiaries of the conditional cashtransfer (CCT) program of their rights against credit-grabbing politicians.Lawmakers revive long-pending bills on gun control, Inquirer News, Jan 08
Lawmakers are dusting off long-pending bills after bullets from celebratory gunfire on New Year's Eve killed two children and the deadly random shooting of eight people by a drug-crazed gunman sparked fresh debates on the need for gun control, putting more teeth in law enforcement and concerns that civilians will be defenseless against armed criminals. In fact, the House of Representatives passed on final reading last year a bill seeking a comprehensive regulation of firearms, light weapons and ammunition, spelling out the requirements for those seeking to acquire a gun and imposing harsher penalties on the use of unlicensed firearms.
Corruption and the foreign ownership rule, Rappler, June 06
(An open letter to the President on the nationality restrictions to foreign investment in the Constitution) Dear President Aquino, You recently asked the National Economic and Development Authority to gather "evidence" whether the nationality restrictions in our Constitution represent a binding constraint to development.
Financial Services
Bank back new BSP rule on capital inflow, philSTAR, Dec 28
Banks are amenable to the new capital inflow measure unveiled by the Bangko Sentral ng Pilipinas (BSP) on Wednesday which is likely to impact on their profits, an official of the organization of big banks said. "After everything was considered, setting the cap at the historical and actual outstanding was deemed to be okay," said Antonio Moncupa Jr. chairman of the Open Market Committee of the Bankers Association of the Philippines (BAP), in an e-mail late Wednesday. "We trust that the BSP always has the interest of the broad economy and the stability of the banking industry in mind in setting its policy," he added.
'Exciting times,' says PSE chief Sicat, as local stocks soar to new heights, Business Mirror, Jan 12
THE year opened with a bang for most publicly listed companies. Day after day, for the past six days, since the start of the trading of the year on January 2, the benchmark PSEi, or Philippine Stock Exchange index, soared high that surprised many, even brokers and companies. "We ran out of reasons why the stock market moved that way," said one analyst during the sixth day of rise of the main index.
SEC nixes 40% foreign ownership cap, philStar, Jan 11
The Securities and Exchange Commission (SEC) will no longer implement the hotly-contested 40-percent foreign ownership cap for all classes of shares, its top official said. This, as the Supreme Court issued an entry of judgment clarifying that the definition of capital depends on the voting rights of shares. "Definitely we will not go to the strict rule of requiring [the foreign ownership cap] in each class of shares,"
IFC cities major obstacles to job in developing nations, philstar, Jan 14
The International Finance Corp. (IFC), the private investment arm of the World Bank group, has identified four major obstacles standing in the way of developing nations to create more meaningful employment. "Removing these obstacles can significantly increase job creation," the IFC said. These obstacles are: a weak investment climate; inadequate infrastructure; limited access to finance for micro, small, and medium enterprises (MSMEs); and insufficient training and skills. IFC executive vice president and chief executive officer Jin-Yong Cai said joblessness is "a global crisis that is especially urgent in the poorest countries." "As the world's largest development institution focused on the private sector, we believe that job creation offers the surest path out of poverty. Promoting it in developing countries is a top priority for us," Jin-Yong said. About 200 million people are unemployed globally. The World Bank estimates that 600 million jobs must be created by 2020, mainly in developing countries, just to keep up with population growth. The answer lies with the private sector, which provides nine out of every 10 jobs.
Asset quality of Philippine banks remains strong - BSP, Business Mirror, Jan 15
UNIVERSAL and commercial banks continue to reflect strength in asset quality in their balance sheets, according to the Bangko Sentral ng Pilipinas (BSP). The non-performing loan (NPL) ratio as of end-October 2012 for universal and commercial lenders is at 2 percent, reflecting a nominal improvement from September's 2.05 percent, a BSP statement showed on Tuesday.
Foreigners buy more Philippines stocks, ABS-CBN, Jan 11
Philippine stocks recorded net foreign purchase of $383 million in the week to Jan. 10 after $55 million inflows last week, Thomson Reuters and stock exchange data showed. The higher inflows involved a share offering by GT Capital Holdings Inc on Jan. 10. Malaysian stocks saw increased net foreign buying of $213 million in the week to Jan. 10 versus last week's $135 million inflows. Vietnam took in $37 million inflows compared to last week's $15 million. Indonesia reported $108 million inflows in the week, weaker than $129 million inflows in the previous week. Thai inflows fell to $46 million in the week versus $128 million of the previous week. Foreigners sold $153 million worth of Thai shares on Jan. 10 after eight straight sessions of buying. Thai stock exchange president Charamporn Jotikasthira told reporters there were limited signs of outflows trends and the foreign selling was just a 'portfolio adjustment'.
Key bank rule relaxed by regulators, Business World, Jan 09
Global regulators have given banks more time to build up cash buffers so they can divert some of their reserves to helping struggling economies grow. Banks had complained they could not meet the January 2015 deadline to comply with a new global rule on minimum holdings of easily sellable assets from the Basel Committee of banking supervisors and supply credit to businesses and consumers. Forex reserves end 2012 at all-time high of $84.25B, Inquirer Business, Jan 07
The country's foreign exchange reserves hit an all-time high of $84.25 billion at the close of 2012, buoyed by the central bank's dollar purchases that were meant to temper what could have been a sharp appreciation of the peso. The yearend gross international reserves (GIR) were enough to cover a year of the country's import requirements and were nearly six times the combined foreign currency-denominated debts of the government and private entities maturing within a year. The latest amount of GIR was up by about 12 percent from $75.30 billion the previous year.
'PSE rally pushes peso up, threatens jobs', Rappler, Jan 08
The Philippine stock market rally is one of the biggest factors driving the peso to appreciate further against the US dollar, threatening the jobs of millions of Filipinos, experts said Tuesday, January 8. Former Budget Secretary Benjamin Diokno and Philexport President Sergio Ortiz-Luiz warned that while the Philippine Stock Exchange's (PSE) surge to all-time highsis a welcome development, it contributes to the peso's fast rise, affecting the country's dollar earners. When the peso appreciates, the biggest losersare exporters, business process outsourcing (BPO) firms, and overseas Filipino workers (OFWs). On Tuesday, January 8, the PSE index hit its 5th all-time high this year, closing at 6,048.90, while the peso closed at P40.85 per greenback. "The rise in PSE index is the result of unmitigated entry of hot money," Diokno said. "The rise in PSE index is a short-term gain with adverse short-term and long-term consequences once the market corrects." Ortiz-Luiz explained that many exporters have decided to downsize and close shop because of the strong peso. He said with the peso nearing the P30 level, something that has not been seen since the 1990s, more exporters are bound to lay off employees this year. Many exporters, he said, have also decided to stop taking orders to cut their losses. This is being done at a time when export growth is still on the way to recovery from the declines of 2011.
Energy
Renewable energy rules out in February - DOE, Inter Aksyon, Jan 15
The Department of Energy (DOE) will release the rules governing which renewable project enjoys the feed-in-tariff (FIT) incentive next month. "We are still finalizing the guidelines for selecting FIT-eligible projects. Our target is February," said Mario C. Marasigan, DOE Renewable Energy Management Bureau director. The FIT, which will be shouldered by consumers, will guarantee the returns of qualified renewable energy investors. The DOE guidelines will identify which renewable energy projects will fall within the 750-megawatt installation target and so qualify for the incentive.
2 years after auction, DOE endorses 11 oil, gas exploration contracts to Malacanang, Inter Aksyon, Jan 16
The Department of Energy (DOE) has endorsed to Malacanang the bids for oil and gas exploration and development projects that the agency auctioned off two years ago. Secretary Carlos Jericho L. Petilla said he has already finished sifting through the oil and gas contracts offered to investors. "I've signed the endorsement papers to Malacañang, more or less 11 contracts," he said, without naming the proponents.
Filipino firm eyes partner in S China Sea gas deal, The Miami Herald, Jan 17
A Filipino businessman says delays in his company's oil and gas exploration at a South China Sea reef claimed by China and the Philippines can be overcome if an international operator joins the project. Manuel Pangilinan said Thursday his group has asked state-owned China National Offshore Oil Corp., a potential partner, to allow an international operator to join to skirt the sovereignty question. Pangilinan is chairman of Philex Petroleum Corp., majority owner of London-based Forum Energy PLC, the contractor. He says an international operator "will internationalize the situation and depoliticize the arrangements." The Philippines and China claim the Reed Bank that lies in the South China Sea off the Philippines' western Palawan Island. Chinese ships tried to drive away a Philippine exploration vessel near the area in March 2011.
Gov't still keen on nuclear power, Rappler, Jan 13
The Aquino government is still keen on pursuing nuclear energy as a means to prevent any power shortage in the future and to make electricity costs more affordable in the Philippines. In the Socioeconomic Report 2010 to 2012, the National Economic and Development Authority (NEDA) said the government intends to focus its efforts on studying alternative technologies in power generation, specifically nuclear power. The NEDA said the Department of Energy (DOE) is currently undertaking efforts to prepare the country for nuclear power use. The agency said the DOE is in the process of undertaking human resource capacity building to prepare for the eventuality.
Electricity spot market in Mindanao to reduce rates, attract investors, Rappler, Jan 15
The trading of energy units, which are parts of efforts to pull electricity rates down and attract fresh investments in Luzon and Visayas, will commence in Cagayan de Oro city in March. The Philippine Electricity Market Corp. (PEMC), which facilitates the trading of energy units, has been directed by the Department of Energy (DOE) to begin the process of creating an interim electricity spot market in Mindanao as part of efforts to solve the critical power supply situation on the island. The electricity market will be a system for effecting purchases through bids to buy and sell electricity as a commodity.
Philippines seeks UAE investors in renewable energy, The National, Jan 15
Jejomar Binay, the vice president of the Philippines, last night said he hoped to woo investors for his country's considerable interest in developing clean and renewable energy."We want to maintain the excellent relations with the UAE," Mr Binay said last night. "We need investors in renewable energy." He is in Abu Dhabi to represent Benigno Aquino, the president, at the World Future Energy Summit. Mr Binay will also be attending the International Water Summit and the Zayed Future Energy Prize ceremony today.
Animation: Why electricity in the Philippines are high, Rappler, 2012,
(See link for video)
The country's high power costs have plagued the Philippines' ability to compete in the manufacturing sector and burdened Filipinos for decades. The reasons are complex, while the policies that tried to address these issues ranged from reactive to populist to idealistic. In the process, the electricity bill has been going up instead of becoming more affordable. Watch this animated illustration to understand how the sins of the past, the capital intensive nature of the power industry, market forces, and moves for cleaner energy sources make their way into the electricity bill.
Comelec gets P4-B boost for expanded polls, Rappler, Jan 14
From a slashed budget that it raised a howl over just last year, the Commission on Elections (Comelec) has come a long way - it will receive an additional P4.14 billion from the national government for the first ever expanded synchronized elections this year. The amount will come from savings from the 2012 budget, the Department of Budget and Management (DBM) said in a statement on Monday, January 14.
Pipeiline operations' resumption needs DOE okay, Business Mirror, Jan 10
THE Court of Appeals (CA) has given the go signal for the resumption of operations of the 117-kilometer oil pipeline that runs from Batangas up to Manila, but its operator must first secure a clearance from the Department of Energy (DOE). The decision was made by the CA's Former 11th Division in its report to the Supreme Court, that earlier ordered it to study the case of the pipeline after issuing a writ of kalikasan. "The Court recognizes the importance of the pipeline for a more effective and cheaper distribution of petroleum products to end-users. Nonetheless, the right of the people, including generations yet unborn to a balanced and healthful ecology cannot be sacrificed in the name of progress," read the CA decision that was written by Associate Justice Fernanda Lampas Peralta and concurred in by Associate Justices Mario Lopez and Socorro Inting.
PSALM taps $500-M loan for capex, philSTAR, Jan 08
The Power Sector Assets and Liabilities Management Corp. (PSALM), the agency tasked to manage the assets and liabilities of state-owned National Power Corp. (Napocor), has tapped a $500-million credit facility from the National Government as part of its funding requirements for the year, its top official said. "For 2013, we have $500 million initial borrowing granted on end-December," PSALM president Emmanuel Ledesma Jr. told reporters.
Special Report: New wave of confidence in local energy sector, Inquirer Business, Jan 07
First of two parts
The time for scrutiny and investigation of past blunders is over. With windows of opportunity opening up, concrete action must now be taken to realize the ambitious goals for the energy sector. Energy Secretary Carlos Jericho L. Petilla, in the few media briefings he has conducted since his appointment in late October 2012, has committed to move forward the programs and policies laid out by his predecessor to help achieve the targets of the Aquino administration, primarily those concerning the power generation and downstream oil sectors.
Defense & Security
Philippine gold mine to pay fine for waste spill, Straits Times, Jan 16
The Philippines' largest gold miner will pay a record fine of 1.034 billion pesos (S$30.8 million) for a waste spill after the government refused a petition to waive the penalty, officials said on Wednesday. Philex Mining will also work with the official Mines and Geosciences Bureau to clean up the spill so that the mine concerned can resume operations by the second half of this year, a Philex official said. The company's main mining site in the northern mountain district of Padcal suffered a spill of mine waste or "tailings" in August after the area was hit by two powerful typhoons. The mine's operations have since been suspended.
New PH map to include 'West PH Sea,' EEZ, Rappler, Jan 16
The official map of the Philippines will include in 2013 for the first time the name "West Philippine Sea" for maritime territories claimed in the South China Sea as well as the 200-nautical-mile Exclusive Economic Zone (EEZ). This was confirmed on Wednesday, January 16, by officials at the National Mapping and Resource Information Authority (Namria), which has already submitted drafts for approval to Malacañang and the Department of Foreign Affairs (DFA). "Previously, in the old maps, the EEZ was not yet indicated, but for the new maps we will now have to produce, we will have to include the EEZ," Namria's Mapping and Geodesy Department director Ruel Belen told Rappler. Belen explained that apart from the EEZ and the "West Philippine Sea,"updating the national map is "business as usual." "It's normal for Namria to update information on the map, it just so happened that we needed to put in new information, in this case the West Philippine Sea," he said. China -- which disputes Philippine sovereignty over certain maritime territories in the area -- ignores the new official nameand rejects the full EEZ as drawn by Manila. Malacañang said last year that calling the area "West Philippine Sea" should be no cause for conflict.
Son of slain general is new AFP chief, Rappler, Jan 15
The general whose father was slain by Muslim rebels more than 3 decades ago is the new chief of staff of the Armed Forces of the Philippines, a senior Palace official told Rappler on Tuesday, January 15. Lt Gen Emmanuel Bautista, commanding general of the Army, has been promoted to lead the 125,000-strong Philippine military, replacing Gen Jessie Dellosa who will turn 56 on January 20, the mandatory retirement age for the military. The turnover ceremonies will be held on Thursday, January 17, in Camp Aguinaldo. Bautista's appointment came despite a strong lobby for Air Force chief Lt Gen Catalino de la Cruz.
British Choppers For The Philippines, Strategy Page, Jan 16
January 16, 2013: In an ongoing effort to upgrade its military, the Philippines has bought three AW109 maritime helicopters for its navy. Britain's last helicopter manufacturer (Agusta Westland, a division of Italian firm Finmeccanica) builds the AW109, which is a three ton aircraft with a max speed of 285 kilometers an hour and endurance of about three hours. It can carry up to seven passengers
. It can be armed with a machine-gun and up to eight TOWtype missiles. Each AW109 will cost about $11 million and they will be delivered within two years. The AW109s will be used mostly for reconnaissance as well as search and rescue. Nearly 600 AW109s are used by fifty countries. The Philippines is buying new equipment in small batches because it is basically broke. But growing Chinese intrusions into Filipino offshore areas has generated sufficient fear to force the Philippines to scrounge up cash for this emergency.Palace: 'Bayanihan' general is next military chief of staff, Business Mirror, Jan 15
PRESIDENT Aquino has named the planner of the government's counterinsurgency campaign as the next Armed Forces chief of staff. Lt. Gen. Emmanuel Bautista, Army commander, and one of the officers who developed Internal Peace and Security Plan Bayanihan that replaced the human-rights violation-tainted Oplan Bantay Laya I and II, has been named to replace Gen. Jessie Dellosa. Bautista is a member of the Philippine Military Academy (PMA) Class of 1981. staff during her more than nine years in power. In less than three years, Mr. Aquino has named four.
Philippine Coast Guard to receive 10 patrol boats from Japan, Inquirer, Jan 12
The Philippine Coast Guard is set to hire some 300 new personnel to man 10 new patrol boats expected to arrive from Japan. PCG spokesman Commander Armand Balilo said they would prioritize applicants who would fit the qualifications of those who will man the new acquisitions. "We need to recruit people with maritime-related courses such as marine engineers and marine navigation course. But we would also be needing technical experts such as those who have mechanical, welding and electrical skills or background," said Balilo.
PH mulls protest over new China map, Rappler, Jan 14
Three days after China announced that it was set to publish a new official map of the South China Sea that will include areas claimed by the Philippines, the Department of Foreign Affairs (DFA) is still waiting for more details before it lodges a protest. "We just sent a communication to the [Philippine] Embassy in Beijing yesterday, [which was a] Sunday, so let's wait and give them time to verify," DFA spokesman Raul Hernandez told reporters on Monday, January 14. Hernandez added that "hopefully we will be able to know the details of this map including the extent of its coverage before we comment more in detail." China's official Xinhua news agency reportedon Friday, January 11 that the National Administration of Surveying, Mapping and Geoinformation had approved new national maps including for the first time the more than 130 islands and islets that Beijing claims in the South China Sea. The maps have already been published but will only will be available to the public by the end of January. According to the editor of the maps, the documents "will be very significant in enhancing Chinese people's awareness of national territory, safeguarding China's marine rights and interests and manifesting China's political diplomatic stance."
Phl, Japan enhance maritime cooperation, philSTAR, Jan 11
Visiting Japanese Foreign Minister Fumio Kishida is pushing for more dialogue as well as greater maritime cooperation between his country and the Philippines, saying both nations should acknowledge the "changing strategic environment in the region." Kishida issued the statement yesterday amid tensions in the South China Sea and West Philippine Sea sparked by China's incursions into the territories of its neighbors. Japan itself is in dispute with China over Senkaku or Diaoyu islands in the East China Sea. "As the strategic environment in the region is changing, it is necessary for us as foreign ministers to share recognition of the situation, enhance the strategic partnership between the two countries, and cooperate towards shaping a peaceful and prosperous Asia-Pacific region," Kishida said. Kishida was in Manila on his first foreign trip as Japan's top diplomat since the election of Prime Minister Shinzo Abe last month. Foreign Affairs Secretary Albert del Rosario and Kishida did not take questions after the foreign ministers gave their statements
DND: 6 More Countries Offer to Sell Warships to Philippines, Defense Studies, Jan 07
At least six foreign countries are offering frigates to the Philippines after the Department of National Defense (DND) expressed interest in purchasing at least two more warships to boost territorial defense amid the dispute at West Philippine Sea. Fernando Manalo, Defense Undersecretary for finance, munitions, installations and materiel, disclosed that aside from Italy, countries that are offering their frigates are South Korea, Spain, United States, Israel, Croatia, and Australia. Manalo said that earlier, the Philippines is only eyeing the refurbished Maestrale-class frigates from the Italian navy worth over P11 billion, but more countries have made their offers in the latter part of 2012.
China Moves In, Strategy Page, June 04
January 4, 2013: The government is scrambling to find the money to buy new military equipment, especially aircraft and ships, to better deal with growing Chinese presence offshore waters (which China claims to control and will, if the Philippines cannot put some ships and aircraft out there). Last year China declared most of the South China Sea as part of China and set up administrative facilities on one of the disputed small islands (that cannot otherwise support a population). China recently announced that it will spend $1.6 billion on building economic or security facilities on these disputed bits of land. China is also backing up its claims by stationing larger warships (frigates and destroyers, with helicopters on board) in the disputed waters. Chinese tactics involve moving in quietly (with warships or facilities built on reefs or uninhabited rocks) and then leaving nearby claimants the option of attacking (and being beaten by more powerful Chinese forced into "defending themselves") or just backing off. The Philippines is seeking help from the United States if it comes to removing Chinese from waters that are generally recognized as Filipino.
Food & Agriculture
Liquor, Cigarette Prices Not Controllable, Manila Bulletin, Jan 07
Officials of the Bureau of Internal Revenue (BIR) admitted yesterday that the agency cannot control the retail prices of cigarettes and liquor after it started collecting higher excise taxes on these products last week. They said the bureau has no authority to regulate prices of these so-called sin products or other commodities for that matter as its rule is confined solely in implementing tax laws passed by Congress. The BIR made the comment in answer to numerous queries it has been receiving from consumers who are determined to continue their vices despite the high cost.
Agrarian reform remains to be a promise, Business World, Jan 14
IS IT safe to say that agrarian reform in the Philippines still remains a promise? Or is it a broken promise? I was looking for some materials on my shelf recently and I happen to stumble on a book that was published in 1987 with the title Agrarian Reform: Experiences and Expectations (Manila: Center for Research and Communication, 1987). Lifting through the pages, I realized it has been 25 years since President Corazon C. Aquino promulgated the Comprehensive Agrarian Reform Program (CARP). But it seems that the 25th anniversary of CARP last year was a non-event unlike many of such anniversaries that are celebrated with plumb. Was it a clear admission on the part of government that CARP was a failure?
Filipinos assured of surplus, imported rice, Business Insight, Jan 18
The Philippines will have enough rice until 2021, hopefully growing it self-sufficiently or sourcing the staple from the rice baskets of neighbors. Surplus rice from Southeast Asia will be enough to satisfy the import needs of the Philippines, Indonesia and Malaysia while continuing to serve large import markets, the United States Department of Agriculture (USDA) projects in a new report. Regional rice production is projected to rise by about 11.3 million tons from 2011 to 2021, compared with an increase of 16.6 million tons over 2000-2010.
Philippines lifts ban on Dutch poultry, Business Mirror, Dec 27
THE Philippines has lifted the temporary ban it imposed on poultry meat, eggs and day-old chicks from the Netherlands after determining that Amsterdam was able to contain the outbreak of low pathogenic avian influenza (LPAI) in Utrecht. The Department of Agriculture (DA) issued Memorandum Order 37, series of 2012, authorizing the lifting of the ban. Agriculture Secretary Proceso J. Alcala said the government decided to again allow the entry of Dutch poultry meat and other poultry products after the Bureau of Animal Industry (BAI) declared that the risk of importing these products from the Netherlands is "negligible."
Philippines eagerly awaits chance to export bananas to US, Fresh Plaza, Jan 15
Dole Philippines, as well as other fruit producers, are ready to make their first shipments to the US, as soon as they get the green light from Washington. "The ball is still with the US. Our exporters led by Dole Philippines are ready to take action, if and when they decide it is alright to allow banana exports," Bureau of Plant Industry director Clarito Barron said in an interview.Before banana exports can take place, however, the final permit from the US government must be issued.Washington has previously signalled that the final decision must be made after the US Presidential elections. Barron said he would clarify the issue with visiting the Philippine agricultural attaché to Washington, Josyline Javelosa. The US government is also reviewing the final work plan on the export of Philippine Cavendish to US Trust territories, in addition to the Continental US.
FAO: PHL rice production may rise 6 percent, Business Mirror, Jan 15
RICE production in the Philippines, the world's fourth-biggest importer, may rise 6 percent year-on-year due to increased planting, the United Nations's Food and Agriculture Organization (FAO) said on Tuesday. Aggregate rice production, including the main season and ongoing secondary season, may total 18 million metric tons, up from 16.998 million tons in 2012, the Rome-based FAO wrote in a country report on its web site. That is equivalent to 11.8 million tons of milled rice.
Fewer families go hungry, Business World, Jan 07
HUNGER AMONG Filipino families fell to a one and a half-year low in December, the Social Weather Stations (SWS) said in a new report, with an estimated one million households no longer having experienced lacking anything to eat. A Dec. 8-11 nationwide survey, the results of which were made exclusive to BusinessWorld, found 16.3% of the respondents -- equivalent to 3.3 million families -- claiming to have gone hungry in the last three months, down from the 21%, or 4.3 million households, recorded in August. The latest hunger figure was the lowest since June 2011's 15.1% (3.0 million families) and contrasted markedly with the record 23.8% (4.8 million families) hit in March last year. The SWS said December's 4.7-point improvement was due to a better score for moderate hunger -- having had nothing to eat "only once" or "a few times" in the last three months -- even as severe hunger -- "often" or "always" going hungry -- marginally rose. Improvements were noted in all geographical areas, although overall hunger as of December was still above the 14-year average of 14.5%. Malacañang, asked to comment on the result, described the decline as a step towards the "full fruition" of the Aquino government's anti-poverty programs.Infrastructure
Clark Is Asia's Next Aerotropolis, Manila Bulletin, Jan 13
Clark International Airport Corp. (CIAC) president and CEO Victor Jose Luciano has stressed the urgency to develop Clark International Airport as an aviation hub because the world's economic center of gravity is rapidly moving eastward. Luciano said this as Clark takes centerstage with the holding of a two-day Clark Aviation Conference 2013 on February 21-22 this year. With the theme "The Case for Asia's Next Aerotropolis", the trade gathering will examine Clark's compelling case as an aerotropolis, an idea in community planning where airports serve as the center for new cities growing around them. CIAC has partnered with Global Gateway Logistics City. "The event will highlight Clark International Airport's critical role in easing air traffic congestion in Manila and driving economic expansion in Central Luzon. It will also identify infrastructure and policy developments at Clark Freeport Zone that are designed to attract airport-related businesses and investments," said Luciano. "More importantly, the conference is a call for the full development of Clark International Airport as an aviation nerve center in light of the economic growth in Asia." The convention targets international investors, logistics and supply chain executives, tourism stakeholders, airline officials, import and export managers, and members of the academe. They are expected to gain insights into Clark's potentials as an aviation and investment destination in Asia and understand better its increasing role in national and regional development.
We need a new airport - Del Rosario, Rappler, Jan 09
Foreign Secretary Albert del Rosario invited on Wednesday, January 9, the DFA press corps to lunch at the Diamond Hotel, a few minutes away from the department's main office along Roxas Blvd. Del Rosario and his staff took an early morning flight to Legaspi City to attend the wake for the recently deceased mother of Albay Rep. and House Foreign Relations Committee Chairman Al Francis Bichara, but they were supposed to be back in Manila with more than enough time to make it to the lunch event at noon. "We calibrated the trip so we would be here far ahead of time...But it didn't work because of the traffic we encountered on the ground between the aircraft at Ninoy Aquino International Airport (NAIA)," Del Rosario told reporters after apologizing for being an hour late.
Subic Freeport: 2013 fruitful for tourism, Business Mirror, Dec 26
After having been cited as the "Convention Capital of Central Luzon" in 2012, the Subic Bay Freeport is expected to declare another banner year in tourism as the year comes to a close. Top officials of the Subic Bay Metropolitan Authority (SBMA) said they expect 2012 to end on a high note for the Subic free port as the agency "became more aggressive" in the promotion and marketing of the former US military base, which is now a certified tourism draw.
International flights pushed in Negros airport, Business World, Jan 15
Tourism stakeholders in Bacolod City and Negros Occidental have inked a manifesto pushing for the declaration of the Bacolod-Silay Airport as an international gateway. They also pushed for the establishment of a customs, immigration and quarantine (CIQ) system at the airport for international flights. Among the signatories are City Administrator John Orola, who also chairs the Western Visayas Tourism Council; Lolita Pushpa Tan, president of the National Independent Travel Agents Association-Negros; and Maricar Dabao, president of Alliance of Tour Guides of Negros. They made the call after the Bacolod-Silay Airport failed to accommodate direct flights from Incheon, South Korea this month. Immigration Commissioner Ricardo A. David, Jr. had denied the request of Bacolod Mayor Evelio R. Leonardia to set up immigration desks at the airport as the agency's "prevailing manpower and equipment restrictions limit their available resources." Korean golf tour operator, Modetour Network, Inc., was supposed to bring in tourists on board 10 direct flights but canceled eight trips due to the airport's inability to handle international flights. Tourists from the two flights arrived last Friday and Monday in the province after passing through the Mactan Cebu International Airport for immigration processing. The original 10 flights from Jan. 10 to Feb. 7 were expected to bring in 1,400 to 1,500 Korean golf enthusiasts to the province.Transport dep't expects Takenaka deal this week, Business World, Jan 15
THE GOVERNMENT expects to sign a $45-million contract with Takenaka Corp. within the week in a bid to make Ninoy Aquino International Airport Terminal 3 (NAIA-3) fully operational by yearend, the Transport chief said yesterday. "We are handling the certification for the availability of funds as a requirement for the signing [of the contract]. Takenaka is just too willing to proceed," Transportation Secretary Joseph Emilio A. Abaya told reporters in a briefing yesterday in Mandaluyong City. "We just want to formalize things. Hopefully, we could sign this week and, within a month, we could give the green light for them [sic] to proceed," Mr. Abaya added. The contract with the Japanese engineering firm, Mr. Abaya said, was worth around $45 million. He explained the contract would cover installation of 23 additional airport systems, including those for baggage-handling, flight information display, building management, local area network, fire alarm and protection, as well as passenger loading bridges.Government Phasing Out Obsolete PUVs, Manila Bulletin, Jan 14
Transportation authorities yesterday said they will start to impound public utility vehicles (PUVs) that are already 13 years old, and with unconfirmed franchises and outdated registration documents. The Land Transportation Franchising and Regulatory Board (LTFRB) reminded operators of the consequences for failing to comply with the government's policy to phase out PUVs that have been used 13 years since the year of their manufacture..
P2.5-B PPP project set for signing, Business Mirror, Jan 16
Malaysia's Alloy-MTD Group (MTD) expects to seal next week agreements for a P2.5-billion provincial local government unit (LGU) complex south of the Philippine capital and the first of as much as $300 million (P12.2 billion) worth of hydropower projects in Northern Luzon, a company executive said. Isaac David, president of MTD Philippines, told the BusinessMirror in an interview that the Malaysian conglomerate is stepping up efforts to reinvest in the country's underdeveloped infrastructure sector; MTD and partner Samsung of South Korea are among four groups qualified to bid for the $1.4-billion contract to expand the Light Rail Transit Line 1. MTD earned a windfall last year from the sale of its stake in South Luzon Expressway to San Miguel Corp. and Indonesia's Citra Group. "We think investments in the Philippines are safe with the current administration and with President [Aquino's] call for public-private partnership [PPP},"
Palace set to issue EO on $1-B MRT equity buyout, PhilStar, Jan 16
Malacañang is expected to issue an executive order within the month that would detail the proposed $1 billion transaction that would pave the way for the complete government takeover of the Metro Rail Transit (MRT) line 3 along EDSA. In a press conference, Transportation Secretary Joseph Emilio Abaya said the Department of Transportation and Communications (DOTC) is awaiting the EO to be issued by President Aquino on the proposed equity buyout involving the proponents of the MRT3.
Delta Air Boosts Manila Flights, Manila Bulletin, Jan 03
Delta Air Lines said it had filed a revised schedule with the Philippines Civil Aviation Bureau to increase services from Manila to Detroit via Nagoya from 5 times weekly to daily service. The 6th frequency will commence on March 5, 2013 and the increase to daily will occur on May 3, 2013. The increase in frequency manifests Delta's continued commitment to the Philippines, particularly with the Philippine Congress approval of Senate Bill 3343 on December 19, 2012. The recently approved legislation will revise the current taxation on foreign airlines by eliminating the Common Carrier's Tax and the Gross Philippine Billings Tax. "We welcome the Philippine Senate's approval on 3rd reading of a bill to reduce discriminatory taxes on foreign carriers," said Steven Crowdey, Delta's general manager of Philippines, Australia and Micronesia.
Manila Water pioneers new dewatering technology, PhilStar, Jan 13
For the first time in the Philippine water utility industry, the Manila Water Co., the Ayala-led water concessionaire in Metro Manila's East Zone, has pioneered the use of a unique and advanced dewatering technology to effectively treat wastewater and lessen sludge from treatment plants called as the Geotube® technology after its Innovations (R&D) team worked on it. The Geotube® is a very good complement to the company's environmental protection programs and advocacies, while at the same time, maintaining the high-quality standards and services that Manila Water has been known for in the past 14 years. "Since Manila Water started using the pioneering technology, we have been very happy with the outcome as it is more efficient and beneficial resulting to a 90 percent reduction of solid sludge volume, Geodino V. Carpio, Manila Water's operations group director, attested. Previously, Manila Water needed to transfer and haul the generated waste activated sludge to septage treatment plants in San Mateo, Rizal and FTI in Taguig for its dewatering process. But with the Geotube® technology, the operational expense due to hauling process is significantly reduced. The technology works by conditioning the sludge before it goes directly to a Geotube® container, a disposable and recyclable environment-friendly vessel.
Gov't to complete bus terminal system by 2015 - Abaya, Rappler, Jan 16
The government wants to complete its integrated provincial bus terminal system by December 2015, 6 months before President Benigno Aquino III's term ends, Transportation Secretary Joseph Emilio Abaya said. Abaya said the government has began a feasibility study and is looking at 3 sites where it will put up bus terminals. These include the Food Terminal Inc. complex in Taguig City, one along Coastal Road and another near Mindanao Avenue in Quezon City. "We've heard that one proponent is going to submit an unsolicited proposal for one site but we have yet to receive it," Abaya said. "We will try to finish it by December 2015. We will focus on it and complete it by 2015."
1st or 2nd hand? Gov't mulls what trains to buy for MRT-3, Rappler, Jan 16
The national government is mulling whether to purchase brand new or second hand trains to increase the number of trains for and improve service at the MRT Line 3 (MRT-3) system in Metro Manila. In a press briefing on Tuesday, January 15, DOTC Secretary Joseph Emilio "Jun" Abaya said that the choice involves second hand trains from Spain or new ones from the Czech Republic, where the current trains of the MRT were made. Two considerations are key: timing of delivery and compatibility to the existing trains in the current system.
Clark passenger traffic up by 71% in 2012, Business World, Jan 06
PASSENGER traffic at the Clark International Airport jumped by nearly three-fourths last year as more airlines operated out of the Angeles City-based aviation hub, the airport management said in a statement yesterday. Clark International Airport Corp. (CIAC) recorded 1.31 million international and domestic passengers last year, up by 71% from 767,109 passengers in 2011. "The Clark Airport achieved unprecedented growth on the strength of budget travel that encouraged passengers coming from Northern and Central Luzon, and as far as Metro Manila and Southern Tagalog, to experience Clark," CIAC President Victor Jose I. Luciano said in the statement. Last year's growth surpassed the 26% increase recorded in 2011..Fare project bid schedule out, Business World, Jan 07
THE TRANSPORTATION department wants the P1.72-billion automated fare collection system (AFCS) project for Metro Manila's light railways bid out and awarded by the middle of the year. In a "project information memorandum" uploaded on its Web site, the department said submission of pre-qualification documents for the public-private partnership (PPP) project is on Feb. 14 while announcement of pre-qualified bidders is on March 6. Pre-qualified bidders will be asked to submit their technical and financial proposals on June 14. Technical proposals will be opened on June 17 while financial proposals will be opened on July 5..DBM allots P8-B funds for disaster preps, Rappler, Jan 08
The Department of Budget and Management (DBM) has allocated P8.1 billion worth of funds for flood control and irrigation projects of the national government. In a statement, the DBM said funds for the following are now available:
- Flood management master plan for Metro Manila and surrounding areas (P5 billion)
- Angat Dam and Dike Project (P1.8 billion)
- Umayam River Irrigation Project (P390.1 million)
- Second phase of the Malitubog-Maridagao Irrigation Project (P391.35 million)
- Casecnan Multipurpose Irrigation and Power Project Irrigation Component (P483.6 million)
The Philippines to introduce personal controlled health data, Future Gov, Jan 08
Philippine Health Insurance Corporation (PhilHealth) will introduce a Personally Controlled Health Records (PCHR) and allow its members to access and manage their own health information. Commencing this year, the PhilHealth will release specification for the PCHR to enable the shift in health data management. This initiative is expected to recreate a patient-centric care as well as stimulating a new business sector on health data stewardship. The PCHR will be owned by the patients and co-managed with their health providers such as hospitals and clinics. The new data system will empower patients to take care of their own health data and use it for better decision making. The system will be designed as a secure repository for health information for individuals and their families-an important compliance requirement of the recently passed Data Privacy Act 2012.
Philhealth CEO quits, Rappler, Jan 14
In a move that surprised the health sector, the president and CEO of the Philippine Health Insurance Corp has resigned. The Department of Health on Monday, January 14, confirmed the resignation "due to personal reasons" of Dr Eduardo P. Banzon as CEO and president of Philhealth. "PhilHealth recognizes the contributions of Dr Banzon in his 14 months of service for the advancement of Kalusugan Pangkalahatan or universal health care in the country," DOH said in a statement released Monday. It said that Health Secretary Enrique T. Ona, chairman of the PhilHealth Board of Directors, will be the OIC of Philhealth. Banzon was appointed by President Benigno Aquino III in October 2011. Universal health care coverage is one of President Aquino's key campaign promises and financing via Philhealth is key to achieving this. As CEO of Philhealth, Banzon pushed for an increase in premiums, noting that, given increases in health-related spending, it was necessary to achieve the goal of decreasing out-of-pocket expenses for health. The implementation of the proposed premium increase has been postponed for several times now. Initially scheduled to take effect by July 2012, implementation was postponed to October of the same year. Come October, implementation got further postponed to January 2013.
On January 1, however, Philhealth announced further deferment of the premium increase, this time to the end of 2013.
Customer service improvements
During his stint as Philhealth CEO, Banzon also grappled with the how to push up benefit utilization rates by Philhealth members. To address the problem, Banzon focused on making the service accessible to the public. In August 2012, Philhealth started issuing machine-readable cards or PhilHealth PVC cards. The new cards are supposed to make it easier for health facilities to access the data of patients who are either Philhealth members or beneficiaries and report benefit claims. In the process, it is expected to help improve members' access to health services. Apart from the cards, Banzon also spearheaded customer service improvement programs such as assistance desks in malls and PhilHealth Moves, a full service desk on wheels which was supposed to target designated barangays and big events and serve as a one-stop-shop on site. Banzon had once served as Philhealth Vice President for Health Finance Policy Services. He was a Senior Health Specialist of the World Bank, providing assistance to the Philippines and other East Asian countries on health financing, health service delivery, and health regulations. A graduate of the University of the Philippines College of Medicine, Banzon finished his MSc in Health Policy, Planning and Financing at the London School of Economics and the London School of Hygiene and Tropical Medicine. He was a Clinical Associate Professor in the UP College of Medicine and a faculty member of the Ateneo Graduate School of Business.
Information/Communication/Technology
Blazing New Trails With I.C.T., Manila Bulletin, Jan 05
THE Information Technology and Business Process Outsourcing (IT-BPO) industry is still one of the fastest-growing sectors in our economy today, generating an average of 600,000 jobs and almost 9 billion dollars each year. With the ASEAN Economic Integration (AEC) set to transform the region by 2015, the industry is expected to generate as many as 4.5 million jobs in three years' time - a golden opportunity for our economy and our people that we cannot take for granted. ASEAN Economic Integration in 2015 is a two-edged blade: While foreign investment especially from the West will be unhindered by tariff laws and bureaucratic customs procedures, it will also bring with it greater competition among ASEAN countries. This 2013, one of the most pressing items on the national agenda is to ensure our readiness to meet this challenge.
Court asked to nullify law, BusinessWorld Online, Jan 15
ARGUMENTS FROM 15 petitions against the Cybercrime Prevention Act of 2012 were heard by the Supreme Court (SC) yesterday, with representing counsels standing firm to their claim that the law is unconstitutional. The arguments, which lasted for more than four hours, ended with the justices noting the petitioners' request to extend the restraining order on the said law issued by the high court last October and set to end on Feb. 6. Some justices cited the law's benefits, stating that it will be a shield against "cyber-bullying" and an added "protection" for private individuals. Counsels tapped to argue for the petitioners were University of the Philippines professors Herminio Harry L. Roque, Jr. and Jesus M. Disini, Jr., Bayan Muna party-list Rep. Neri J. Colmenares, Philippine Bar Association counsel Rodel A. Cruz, and Julius G. Matibag of the National Union of People's Lawyers. Mr. Roque, who began the arguments for the petitioners, said the electronic libel provision should be declared unconstitutional as it penalizes free speech. Under the law, Internet service providers could be also penalized for publishing libelous statements online, he said. Associate Justice Roberto A. Abad, however, explained that posting of "something libelous" does not make one liable.Prisoners in Philippines being trained in ICT, CNA, Jan 16
Prisoners in the Philippines are being trained in information and communications technology. It is part of efforts to provide them with skills that will help them rejoin the workforce when they end their sentences. Maria Irene Esquinas, superintendent of Taguig City Jail, said: "This is really a big help to them because most of them do not have any background on computers or have not finished their studies." Under the scholarship programme given by the local government, inmates will undergo training in basic computer literacy for at least three hours a day. Upon completion of the two-month program, they will be given a certificate of completion, something that 44-year-old "Teresa" is looking forward to. Accused of using and selling illegal drugs, the mother of three said being able to study while in jail has given her hope. She said: "I will change my ways and turn into a new person. I won't go back to my old ways anymore after this. "With the certificate that will be given to us after graduating this course, it will help me find a decent job even after being in jail." Future plans for these detainees include teaching them computer skills that can help them become call centre agents. The government is even planning to put up a call centre within the jail facility that can help provide jobs when they graduate. There are currently more than 70,000 prisoners in different jail facilities across the Philippines.
Philippines can be a global leader in advergaming, Business Inquirer, Jan 17
Who doesn't know Angry Birds? It was one of 2012's biggest buzzwords, a hugely successful smartphone video game that got millions of people worldwide, across all age groups playing like crazy. This year, the Philippines is on the cusp of becoming a world leader in video-gaming as a proudly made Pinoy video game aims to surpass what Angry Birds has reached in terms of popularity and dollar payback. But that's getting ahead of the story. From a $140,000 investment, Angry Birds returned with $70 million in revenues. The blockbuster hysteria that it created is a great case study for the growing importance of video games as new media highway for forward-thinking advertisers. A case in point is the rapidly evolving online, social and mobile game markets. They all have captured the hearts of Asian and world gamers.
Microsoft Philippines partner with the City of Makati to introduce its first lifestyle app, Tempo, Jan 16
In their commitment to better the lives of Filipinos through the use of technology, Microsoft Philippines partnered with the City of Makati to introduce its first local lifestyle app that features up-to-date information on the country's largest business district. The MyMakati app features the city's latest news, traffic information with the actual camera view of the busiest junctions in the city as well as live weather updates from 7 different stations across the city. "We are pleased to work with Microsoft to place technology at the service of the people. The MyMakati App delivers real time updates on traffic, weather and city news-information that critically affects the lives of our citizens and visitors," said Mayor.
HP to set up Davao business and learning hub, GMA News, Jan 14
HP Philippines recently announced plans to investin Davao City by opening a branch office, BPO outlet and systems applications, and partnering with local schools and universities to integrate HP applications into their curricula. This was disclosed by Ryan Guadalquiver, HP Philippines' Managing Director, after he and his team from Makati presented their portfolio to the Davao City Investment Promotion Office, according to Edge Davao. Guadalquiver shared that HP plans to make a sizeable investment in the city but, did not disclose the actual amount. Jose Noel Morales, HP Philippines Business Consultant, was cited as saying that the systems and applications that will be used in the curriculum will be compatible with the needs of IT-companies and the academe -which could provide more employment and business opportunitiesfor graduates and for the local business community. "We will be pushing Windows 8 applications. With this, a more advance application will be introduced and will add up to the phasing of HP products and services," Guadalquiver said. The schools identified that could be partners for HP curriculum integration include University of the Philippines Mindanao, University of Southeastern Philippines and University of the Immaculate Conception.
Local software group all set for global push, Manila Standard Today, Jan 06
For 2013, the Philippine Software Industry Association (PSIA) said it will intensify its efforts to promote locally created software products in the global arena through its Product Development Special Interest Group (PD/SIG). By 2016, the PSIA said it aims to achieve global recognition for at least 10 Filipino software products and generate approximately $1 million in annual export revenues.
Makati firm, foreign partners to invest $15M for remote Internet kiosks, Business Mirror, Jan 15
A firm based in Makati City and its foreign partners vowed to invest at least $15 million in one to two years that will allow Internet connection in remote areas in the country. IPSTAR Solutions Philippines Corp. (IP Star) President and CEO Dr. Joey Aranal and some 120 investors, most of whom are from Asia, opened on Saturday the state-of-the-art satellite Internet E-Kiosk project in Barangay Planas, Porac town, Pampanga. Aranal said their partners are from Taiwan, Hong Kong, Thailand, China and Malaysia. Aranal said overseas Filipino workers (OFWs), who reportedly remitted at least P3 billion last year, will "greatly benefit" from the project because their families will be connected to the OFWs through the Internet.
PLDT to advantage of rapid growth in Internet access, philstar, Jan 14
Dominant carrier Philippine Long Distance Telephone Co. (PLDT) has positioned itself to take advantage of the exploding number of Internet access devices in the country that is expected to reach 45 million by 2016. PLDT executive vice president Ariel Fermin said in a statement that the buoyant communication device development could be attributed to a variety of factors. This, according to him, includes the steep device financial assistance offered by local providers who resell majority of new model of phones and the growing array of gadgets below the P10,000 mark available in the market today. Fermin, who is also head of PLDT HOME Business, said International Data Corp. (IDC) predicts the total number of devices, including personal computers (PCs), internet access devices (IADs), and tablets in the country will reach more than 45 million by 2016.
Cell phones bolster PHL's microfinance growth, Business Mirror, Jan 12
MICROFINANCE via mobile banking is a fast-growing business, the industry having grown 58 percent based on official data. When the United States Agency for International Development (Usaid) reported on the subject last year, it quoted total loan transactions worth $400 million, or P17 billion, extended by rural lenders to 390,000 micro borrowers across the country. Data obtained by Smart Communications from Manila-based Asian Development Bank show the rural lenders' loan transactions rising 1.5 times since 2010 and now total $632 million, or P25.9 billion, instead. According to the telecommunications carrier, the loans pertained to more or less 3 million active micro borrowers who may borrow up to P300,000 each from any of the accredited microfinance lenders accredited by the Bangko Sentral ng Pilipinas (BSP). Regulations define microfinance lending as transactions involving loans and accommodations not exceeding P300,000, which was a doubling from original ceiling of only P150,000 per borrower. The rapid increase in micro lending volume and value highlights the potential of microfinance as an economic game changer for an archipelagic country like the Philippines, the bulk or 75 percent of whose population do not own a bank account. Smart executives said most Filipinos do not own a bank account because the lenders require steep deposit requirements. The practical impact of this seemingly innocent requirement results to the exclusion of seven out of every 10 Filipinos from the formal banking system, the telecommunications executives said.
Phoning from the Philippines, Al Jazeera, Jan 14
Move over India - Manila is the new call centre capital of the world. With its English-speaking workforce, geopolitical stability and embracement of Western culture, the Philippines is fast becoming the world's hottest destination for call centres. Established in just a decade, the outsourcing industry now employs 420,000 workers and accounts for five percent of the country's gross domestic product (GDP), or roughly $11bn in revenue. The country is also an attractive backroom for small- to medium-sized companies in Western countries because it is a comfortable timezone to work in and there is cost savings of up to 70 percent. While the Philippines leads other Asian outsourcing countries in voice oriented services- the country is looking to diversify and offer more complex creative services like animation, game development, copywriting, graphic and engineering design. An estimated 80 percent of all call centres are in Manila, but outsourcing hubs are also opening in the provinces, bringing roads, airports and jobs to poor areas. This offers new opportunities and starting salaries that are roughly 40 percent higher than the country's minimum wage.
Philippines protest cyber crime Law, Al Jazeera, Jan 14
(See link for video)
16th petition filed vs Cybercrime law, ABS-CBN, Jan 11
A new petition against the Cybercrime Prevention Act of 2012 was filed with the Supreme Court (SC) by youth leaders on Friday, 4 days before oral arguments on 15 petitions against the law are heard. The petitioners included Heart Dino, chairperson of the University of the Philippines-Diliman Student Council, 2012 Ten Outstanding Students of the Philippines (TOSP) awardee JC Tejano, University of the East Student Council President Ephraim Ocampo and De La Salle University Student Council president Julie Ann Cabuhat. The petition assailed the law for "infringing on the youth's civil liberties." Among provisions that petitioners want nullified by the high court is the provision that criminalizes libel on cyberspace. They said it is "very alarming" that that law still allows the prosecution under the Revised Penal Code of anybody prosecuted for e-libel under the Cybercrime Prevention Act. The group urged the high court to extend the 120-day temporary restraining order (TRO) it issued against the implementation of the law; the TRO lapses on Jan. 29. A small group of students also picketed in front of the Supreme Court in support of the 16th petition against the assailed law, with one protester lying flat on the high court's giant seal by the main gate. Policemen called his attention, and he willingly got up.
Customs
Local business leaders urged to push PHL-EU free-trade agreement, BusinessMirror, Jan 15
The European Chamber of Commerce of the Philippines (ECCP) urged local business leaders to encourage the Philippine government to move forward in starting negotiations with the European Union (EU) for a free-trade agreement (FTA). With the impending economic integration of members of the Association of Southeast Asian Nations (Asean), the ECCP noted that an FTA between the EU and the Philippines has become more important. ECCP Executive Vice President Henry Schumacher, in a statement, said that based on current trends, Singapore, Thailand, Malaysia and even Vietnam could sign an FTA with Europe by 2015.
RP-EU FTA Becomes More Important With 2015 ASEAN Economic Integration, Manila Bulletin, Jan 15
ASEAN's full economic integration two years from now should be a compelling reason for the Philippines and EU to finally enter into a free trade agreement before 2015, the European Chamber of Commerce of the Philippines (ECCP) said. European Chamber of Commerce of the Philippines executive vice president Henry Schumacher has urged the private sector to encourage the Philippine government to decisively move forward in starting Free Trade Agreement (FTA) negotiations with the European Union (EU) and be ready when the region integrates economically in 2015. Based on current trends, Schumacher said that Singapore, Thailand, Malaysia and even Vietnam could sign an FTA with Europe by 2015.
Nissan sacrifices tariff savings, Business Insight, Jan 18
Nissan Motor Philippines prefers to sacrifice zero tariff given on vehicles exported to the Philippines. Instead the company will expand its assembly operations, create a few more jobs, use a little more of locally-made parts and components and compete in the fastest-growing segment of the car market. Nissan's newly launched Almera will compete in the "B" (subcompact) segment, which together with the multipurpose vehicles (MPVs), are the fastest-growing sector in the car market.
Customs collects P287-B in 2012, misses target, Rappler, Jan 08
This was not a surprise. The Bureau of Customs (BOC), the second largest revenue collecting agency of the government, missed its 2012 goal. Preliminary data from the agency showed it collected P287 billion, reflecting an 8.5% increase from 2011's collection of P263 billion. This, however, was way below the target of P347 billion for 2012. Customs Commissioner Ruffy Biazon cited reasons, including the appreciation of the peso against the US dollar and the Philippines' international trade deals that cut tariffs.