Top Story: Google Opens Office in Manila
LOOKING AHEAD:
- 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/forum or arangkadaforum.eventbrite.com
- The Vice Chair of the Philippines Committee, Peregrine, is holding the Clark Aviation Conference themed "Asia's Next Aerotropolis" at Clark Freeport Zone on Feb 21-22, 2013. For more information please CLICK HERE.
Manila Begins Legal Proceedings Over South China Sea Claims, CSIS, Jan 24
On January 22, the Philippines fired a legal shot across China's bow with Secretary of State Albert del Rosario's announcement that Manila had submitted a motion to the United Nations requesting that China's South China Sea claims be brought before an arbitral tribunal. China has consistently refused to negotiate its claims in the South China Sea, which overlap with those of the Philippines, Malaysia, Brunei, Vietnam, and Taiwan, in multilateral settings. China's first official reaction to del Rosario's announcement was unsurprising; it decried the decision and reiterated its "indisputable sovereignty" over the islands and adjacent waters of the South China Sea. The immediate reaction from many other observers to the Philippines' decision to seek arbitration was dismissive. Given Beijing's objections to multilateralizing the dispute and the complicated nature of the disputes, a common assumption is that the Philippines has embarked on little more than a publicity stunt. But this is inaccurate. The Philippines' case for arbitration is sound and it has the potential to fundamentally alter the situation in the South China Sea.
Further liberalization urged, Business World, Jan 22
THE UNITED STATES is pleased with the pace of the Philippines' growth but would like to see economic expansion sustained in the long term by further liberalization, a visiting US State Department official yesterday said. Fresh into a new term, the Obama administration would like to see a Pacific trade agreement concluded this year, as well as continued engagement with the Asia-Pacific Economic Cooperation (APEC) forum. "The US wants to partner with the Philippines to sustain growth and to create the conditions for additional investments and prosperity," said Atul Keshap, a senior State Department official who serves as the US representative to APEC. Mr. Keshap, who is in Manila for APEC Business Advisory Council meetings, noted that the Aquino administration's anti-corruption drive had contributed to strong economic growth, which he described as the "envy of all of Asia".
Population ratios favourable for the Philippines, Business World, Jan 22
THE PHILIPPINES has some of the best population ratios, Fitch Ratings said, in contrast to advanced economies facing the prospect of reduced labor forces. "In advanced economies, the elderly are expected to make up a rapidly rising proportion of their populations over the next 30 to 40 years," the debt watcher said in a report released yesterday. Coupled with high public spending for health care, it warned that countries could face severe pressure on their finances as their populations age. Fitch does not expect to downgrade countries immediately since they still have scope to neutralize the cost impact. But if they fail to address the problem, negative rating actions are possible in the next decade. "Fitch's Sovereign Rating Model predicts a 1.5-notch downgrade by 2030 for countries with the worst ageing problem, without any policy reforms ... by 2050, the model predicts a five-notch downgrade," it said.
Talks to resolve contentious points, BusinessWorld, Jan 21
GOVERNMENT AND Moro negotiators yesterday began crucial talks in Kuala Lumpur to settle contentious provisions that will give teeth to a peace plan inked last October. "In this round of talks we aim to settle the few remaining issues across the four annexes that together with the framework agreement will comprise the comprehensive agreement," chief negotiator for the government Miriam Coronel-Ferrer said in an opening statement. The Framework Agreement on the Bangsamoro signed in Malacañang required the drawing up of annexes on key concerns.
Senate rushes bill approvals, BusinessWorld, Jan 21
THE SENATE yesterday approved several bills, including two priority measures, as it rushed legislative work in only nine session days. Voting 14-0, the chamber approved on third and final reading Senate Bill (SB) No. 3286, or the K to 12 Basic Education Program which is composed of at least a year of kindergarten education, six years of elementary education and six years of secondary education. Secondary education, the bill further provides, will have four years of junior high school and two years of senior high school.
US execs impressed by PH's anti-corruption efforts but..., Rappler, Jan 25
Anti-corruption efforts and economic reforms in the Philippines have impressed visiting US business executives, but other lingering issues have concerned them. Citing how corruption issues hounding the country have pulled back investors in the past, United States-Philippines Society (USPS) president John Maisto told a press conference on January 24 that the Aquino government's sustained battle against wrongdoings have been inspiring investor confidence. "The biggest mention [of why they are considering the Philippines positively] is the fight against corruption," Maiso said. "President and members of the Cabinet were vey clear in their basic message of...fighting corruption within institutions. [It] was a very powerful one."
Phl slips in budget transparency survey, philSTAR, Jan 25
The country's budget transparency score slid by seven points last year, indicating that the government provides the public with only tepid information regarding how public officials and agencies are spending taxpayers' money. Based on the Open Budget Survey 2012, the country scored 48 or seven points less than its rating in 2010. It trailed Indonesia's 54 percent but surged past Thailand's 40 percent and Malaysia 's (30 percent). The index score is largely based on whether a country makes eight key documents available to the public. These are the pre-budget statement, executive's budget proposal, citizens' budget, enacted budget, in-year reports, mid-year reviews, year-end reports, and audit reports.
PH still lagging behind in Millennium Development Goals, Inquirer News, Jan 23
The country is still lagging behind in achieving certain Millennium Development Goals (MDGs), specifically in attaining universal primary education, maternal health, but most of all in battling inequality, according to a civil society group. Leonor Magtolis-Briones, lead convenor of Social Watch Philippines, explained to members of the House of Representatives how far President Benigno Aquino III has taken his "daang matuwid" (straight path) and what the government needs to address as the MDGs draw to a close by 2015. The assessments Briones made were part of Social Watch Philippines' report entitled "Breaking Through to Sustainability," copies of which the group furnished the House of Representatives with on Wednesday.
HSBC: More FDIs may flow to ASEAN, except Philippines, Inquirer Business, Jan 10
Despite its favorable demographics, the Philippines continues to miss out on a greater share of foreign direct investments (FDIs) due to a "restrictive" foreign ownership policy and "uncompetitive" businessenvironment, British bankinggiant HSBC said. "We believe the country has great potential to attract investment but significant reforms are needed to make it happen," HSBC economist Trinh Nguyen said in a research paper. But the economist said that with the prevailing political conditions, any such reform would not likely take place until 2016, the year President Aquino leaves office. "As such, we believe FDI will only increase marginally in the Philippines," she said. In a Jan. 9 research titled "The Great Migration: How FDI is moving to Asean (Association of Southeast Asian Nations) and India," Nguyen said China received the most FDIs in the developing world since 1993, thanks to a surplus of labor, a large market and favorable policy. But rising costsfrom increasing wages, an appreciating renminbi and a shrinking working population have been pushing multinationals to relocate from the mainland. As a result, countries with large pools of labor, strong domestic demand and low costs have become attractive destinations, the analyst said.
Congress to focus on anti-trust, AMLA, philSTAR, Jan 21
The leaders of the Senate and the House of Representatives have agreed to work on passing the anti-trust bill, the third set of amendments to the Anti-Money Laundering Law (AMLA), and the human rights compensation bill as Congress resumes session today after almost a month's break for the holidays. Speaker Feliciano Belmonte Jr. and House Majority Leader Neptali Gonzales met with Senate President Juan Ponce Enrile, Senate Majority Leader Vicente Sotto III and Sen. Gregorio Honasan on Saturday to map out the pieces of legislation that will be prioritized in the remaining nine session days before going on a four-month adjournment on Feb. 9 for the midterm elections in May. "There are a couple of bills I hope we could tackle. For instance, there is the anti-trust bill, which is still on second-reading consideration," Belmonte said over the weekend. "In our conferences with local and foreign businessmen, the idea of an anti-trust law has always cropped up. And I don't see any reason why we should not pass it. It's something the country needs." While the anti-trust measure is still pending, the House has already approved the AMLA amendments, which will now go to a bicameral conference committee.
Gov't remains committed to mid-term fiscal plan, philSTAR, Jan 21
The government remains committed to its medium-term fiscal consolidation program even as it maintains robust levels of spending to further spur economic growth, Finance Secretary Cesar V. Purisima said. On the sidelines of the Bangko Sentral ng Pilipinas' Annual Bankers cocktails Friday, Purisima said the government is hoping to sustain the country's rapid economic growth by continuing to implement sustainability programs, pumping up infrastructure spending and improving processes to attract more investors and create jobs. Purisima said the country is on track in its fiscal consolidation path that aims to trim its budget deficit to two percent of economic output starting this year until the end of the Aquino administration in 2016.
Execs of top US firms to visit Phl this week, philSTAR, Jan 21
Executives of some of the US's largest companies are set to visit Manila this week to promote greater trade and investment with the Philippines. In a statement sent by the Department of Foreign Affairs, the Philippine Embassy in Washington, D.C. said the delegation, which will be in Manila from January 23 tois 25, is led by the US-Philippines Society, a non-profit and independent organization that seeks to raise the profile of the Philippines in the United States. The Society, which was formally established during the visit to Washington last year of President Benigno S. Aquino III, is co-chaired by Philippine Long Distance Telephone (PLDT) Co. Chair Manuel Pangilinan and former US Ambassador to the Philippines John Negroponte. "The delegation will participate in a dynamic program aimed at strengthening ties with political and business leaders, fostering discussion of strategic issues, and promoting business and investment opportunities," said Ambassador Jose L. Cuisia Jr. who will be leading the delegation along with Negroponte. Cuisia said the delegation will include executives of big companies such as Citigroup, Chevron, Coca Cola, General Electric, JP Morgan Chase, Procter & Gamble, Peregrine Development International, CV Starr & Co., the US Education Finance Group, McLarty & Associates, Federal Express and Spence & Co.
Perfect Tandem, Manila Bulletin, Jan 17
The Philippine economy is growing at a respectable rate of 6 to 7 percent. So why are there still millions of people going to bed hungry every day? The answer is that for a growing economy to reduce mass poverty in any significant way, growth of 7 percent of GDP for more than a decade is needed. That was the experience of the tiger economies in the last century and China in more recent times. Our growth of 7 percent or more has to be sustained for at least a decade for us to see millions of Filipinos being liberated from mass poverty. High growth is not a sufficient condition for eradicating poverty. But it is a necessary condition. Without growth, any attempt to redistribute income will just result in distributing more poverty.
Financial Services
Investors pledged more last year, BusinessWorld Online, Jan 22
INVESTMENT PLEDGES obtained by two agencies under the Trade department rose slightly in 2012 on the back of improved interest in the country, officials yesterday said. Pledges made to both the Board of Investments (BoI) and the Philippine Economic Zone Authority (PEZA) went up by 2.29% to P672 billion in 2012 from P657.23 billion in the previous year, Trade Secretary Gregory L. Domingo said in a text message to reporters. "[Last year] was up slightly because BoI went down but PEZA went up so the net effect is that numbers are higher," Mr. Domingo said.
PHL bond market more promising in 2013 - report, Business Mirror, Jan 24
THE Philippine bond market appears to be even more promising in 2013 than last year, according to a monthly capital-markets research report by the First Metro Investment Corp. and the University of Asia and the Pacific. In the January issue of Market Call, the report said the bond market seemed favorable as government-bond yields will continue to ease, albeit more slowly. It added that short-term Treasury bills (T-bills) are already very low and that action will likely occur in the longer end of the curve, and that it could further drop there to about 50 to 60 basis points. Yields are expected to decline in the first quarter of 2013, recover a little in the second and third quarters, and plunge again in the last quarter. "Continued influx of overseas Filipino workers' remittances and foreign portfolio capital, lower inflation rates, and [fewer] supply of government papers due to the lower deficits and borrowing requirements of the national government will bring expectations on the bond market to happen," the report said. Trading volume is expected to be higher due to supply constraints.
Foreign banks to list on bourse, Business World, Jan 21
FOREIGN-owned banks will list on the Philippine Stock Exchange in compliance with a Bangko Sentral ng Pilipinas circular ordering them to do so, officials said. The central bank issued Circular No. 775-2012 dated Nov. 28 requiring lenders, which are majority-owned by foreign banks and are established in the Philippines, to list on the local bourse. These banks must do so within three years from the effectivity of the circular, which was 15 days after it was published in a newspaper last Dec. 4. Circular 775 cited as basis the provisions of Republic Act (RA) No. 7721 or "An Act Liberalizing the Entry and Scope of Operations of Foreign Banks in the Philippines and for other purposes." Section 2 of this law cited the listing requirement for foreign banks that entered the country by buying as much as 60% of an existing bank or investing in up to 60% of the voting stock of a new subsidiary incorporated in the country. Bank of Commerce President and Chief Executive Officer Sergio G. Edeza in an interview with reporters on the sidelines of the central bank's annual reception for the banking community last Friday said "[the circular] is a central bank requirement so it has to be followed."
SEC to require TIN from foreign investors, philSTAR, Jan 20
Corporate regulators have stepped up efforts in making sure foreign company officials are paying proper taxes for their income here in the Philippines. In a memorandum, the Securities and Exchange Commission (SEC) said it will require the tax identification number (TIN) on foreign investors in a local company. "No application for incorporation of a corporation, or registration of a partnership shall be accepted unless the TIN or passport number of all its foreign investors are indicated in its registration documents like Articles of Incorporation," SEC said. Applications for amendments of a company's registration documents will not be accepted by SEC unless the TIN of all the foreign investors, natural or juridical, resident or non-resident, are indicated. "All documents to be filed with the SEC by corporations and partnerships after their incorporation like General Information Sheets shall not be accepted unless the TIN of all its foreign investors are indicated therein," the SEC added.
Energy
PIPPA seeks gov't assurance on supply, prices, philSTAR, Jan 25
The Philippine Independent Power Producers Association (PIPPA), a group of independent power generators, is urging the government to assure sufficient supply of reliable and competitively priced electricity in anticipation of more investments this year. PIPPA president Ernesto Pantangco said the government should take advantage of the momentum indicated by the historic highs in the Philippine Stock Exchange index (PSEi) and the better-than-expected economic growth in the third quarter of 2012. "Given the latest developments, it is already necessary to put up the necessary infrastructures that will secure the continuous supply of electricity," Pantangco said. Benchmark PSEi has already breached the 6,000-level, hitting 6,092.53 on Wednesday and is expected to breach the 7,000-mark this year on the back of strong investor appetite for stocks.
Gokongwei-led URC joins power sector, Rappler, Jan 25
The food manufacturing unit of the Gokongwei group is joining the power business by generating its own electricity using the by-product of its sugar business. On Thursday, January 24, shareholders of Universal Robina Corp. (URC) approved the the company's plans to build a 40-megawatt cogeneration plant alongside its Sonedco sugar mill in Cabangcalan, Negros Occidental. URC chairman James L. Go told reporters after the special stockholders meeting that the company is looking to invest internally-generated $1.5 million per megawatt -- or around $60 million (P2.44 billion) -- for the proposed facility, which will run on sugarcane byproducts, or bagasse. "We will manage it ourselves," Go said.
$700-M Project Mitsubishi Eyed for Pagbilao Expansion, Manila Bulletin. Jan 22
The developers of the 400-megawatt expansion of the Pagbilao coal-fired plant are now reportedly negotiating with Mitsubishi Heavy Industries (MHI) for the engineering, procurement and construction (EPC) contract of the $700-million power project. "There are negotiations being carried out with MHI," a source privy to the talks has disclosed, and that a final decision is expected to be reached soon. The plant's capacity will be expanded from 735MW currently. It must be noted that the project sponsors extended the evaluation process for the three firms initially selected as prospective turnkey contractor for the project. Aside from Mitsubishi, the two other groups which submitted proposals are Korean firm Hyundai Engineering & Construction and American engineering firm Black & Veatch.
German firms keen on PHL bioenergy sector, Business Mirror, Jan 23
EIGHT German firms have expressed interest to provide technology solutions on bioenergy for the Philippines. The eight firms are Vastani GmbH, Eckrohrkessel GmbH, Envitec Biogas Ag, GTP Solutions GmBH, Binder GmbH, Ascentec GmbH, Novis GmbH and Pregobello GmbH. Company representatives are currently in the country to share knowledge, introduce innovative solutions on bionenergy for the Philippine market, and to network to identify local partners and projects. They will also visit selected biomass and biogas projects in Southern Luzon to explore on-site the challenges and opportunities of producing energy from biomass and biogas. Bioenergy is energy derived from biomass which includes biological materials, such as plants and animals, wood, waste, gas, and alcohol fuels.
Purisima bats for auction of mining contractions, philSTAR, Jan 22
The Department of Finance yesterday stressed the need to increase levels of transparency in the mining sector and to subject the government's mining rights to a competitive bidding. In a speech before the Extractive Industries Transparency Initiative yesterday, Finance Secretary Cesar V. Purisima said the Aquino Adminisration wants a responsible resource extraction in the country as it seeks to increase revenue share from resource contracts. Purisima said transparency should not only be on revenues they pay to government, but also on their plan. "At the beginning, (it must be) set forth by the mining company on what they're going to do so that there is economic sustainability," he said. "That's why we've been pushing the DENR to change the model in terms of granting contracts involving the mining industry - for exploration or for development. I've been pushing for the idea of auctioning," he said.
Thai firm eyes jv for wind proj, philSTAR, Jan 19
Thailand's Electricity Generating Public Co. Ltd. (EGCO) is now doing due diligence for a possible joint venture with Philippine Hybrid Systems Inc. for a wind power project in the country. In an interview, Frank Thiel, managing director of Quezon Power Philippines Ltd., which is controlled by EGCO, said the possible joint venture deal for a 48-megawatt (MW) wind power product in Mindoro is being studied. "We're still looking at that but no decisions have been made yet. We're still doing some due diligence for the project. It looks very promising and it looks good," Thiel said. He said EGCO hopes to come up with a decision within the next two to three months. "We're hoping to be there at the end of the day but we still have a ways to go. Probably in the next two to three months will be able to make a decision on that," Thiel said. He assured that the company would comply with the necessary laws.
Firm says South China Sea project needs China or US backing, Business World, Jan 17
A COMPANY holding a contract to explore for oil and gas in disputed waters in the South China Sea yesterday said the project's success hinged on either joint exploration with China or United States support if the country took on the venture alone. Forum Energy Plc, whose majority shareholder is linked to top miner Philex Mining Corp., has had talks with Chinese state-owned offshore oil producer CNOOC on joint exploration. But those talks are clouded by competing Chinese and Philippine territorial claims to large swathes of the South China Sea. Philex Mining's chairman, Manuel V. Pangilinan, said there was a danger that the gas field on the Reed Bank off the western Philippine province of Palawan would never be developed. "It is a very practical question and I guess a moral question as well: Are you prepared to set aside, but not surrender, your claim on sovereignty over the area, so you could go on and develop the area jointly?" Mr. Pangilinan told a forum hosted by the foreign correspondents association. Defense & Security
PH to take China dispute to UN tribunal, Rappler, Jan 22
The Philippine government announced on Tuesday, January 22, that it will elevate its territorial dispute with China to the International Tribunal for the Law of the Sea (ITLOS). The Department of Foreign Affairs (DFA) said the government decided to bring the row in the West Philippine Sea (South China Sea)to Annex VII arbitration under the United Nations Convention on the Law of the Sea (UNCLOS). The Philippines will ask the tribunal to declare China's claims as "invalid" and that the said maritime areas should follow the UNCLOS, Foreign Affairs Secretary Albert del Rosario said in a press conference. Chinese Ambassador Ma Keqing was summoned to the Department of Foreign Affairs (DFA) and given a note verbale regarding the Philippines' Notification and State of Claim in the West Philippine Sea. Del Rosario said that the Philippines asserts that China's 9-Dash Line claim is against UNCLOS, of which both the Philippines and China are signatories, and thus "unlawful." "The Philippines has exhausted almost all political and diplomatic avenues for a peaceful negotiated settlement of its maritime dispute with China... We hope that the arbitral proceedings shall bring this dispute to a durable solution," he told reporters.
China Wants It All And Will Fight For It, Strategy Page, Jan 20
January 20, 2013: The government has told oil companies to hold off on drilling for natural gas off Reed bank. This is within Filipino territory but China threatens to use force to prevent drilling. Two years ago China interfered with Philippines supported oil exploration in Reed Bank, which is considered part of the Spratly Islands. This exploration work was done 230 kilometers off the coast of the Philippine's Palawan Island, which is well within the internationally recognized EEZ (Exclusive Economic Zone) that extends 380 kilometers from the coast. China considers itself the owner of the Spratleys and has been increasingly aggressive in enforcing that claim. China admits that it had research ships in the area and makes it clear that any oil exploration or drilling activity in waters claimed by China will be at risk of interference by Chinese ships and aircraft. This alone is enough to scare off most oil companies.
Navantia Offers Combat Ship and LPD to Philippines, Defense Studies, Jan 18
Navantia needs to increase its business, currently based in the maintenance of Navy ships and the construction of two amphibious ships similar to Juan Carlos I to Australia, the first of which was delivered in October 2012. A low workload for its three shipyards that is taking to strengthen its commercial activities, supported by the Ministry of Defence.
Save reef not US ship, says PH government, Inquirer, Jan 21
The United States Navy has sent 10 American divers to assess the situation and brought in two private salvor ships to try to extricate its minesweeper that got stuck on Tubbataha Reef, a world-renowned marine sanctuary in the Sulu Sea, the Philippine Navy said on Sunday. Environmentalists have expressed worry the extraction may damage the reef more. Palawan Gov. Abraham Mitra called on Philippine authorities to take charge of the operation so that priority could be given to saving the coral reef rather than the US ship. Lt. Cmdr. Gregory Favic, US Navy spokesperson, said the American divers were accompanied by nine Philippine Coast Guard personnel aboard the Navy's BRP Mangyan. The divers, who took off from Puerto Princesa City in Palawan, were tasked to find the best way to free the trapped US warship, the USS Guardian, which ran aground before dawn on Thursday.
US Navy raps faulty map for hi-tech ship's grounding, Inquirer, Jan 20
The United States Navy said a minesweeper that ran aground on a coral reef in the Philippines was using a faulty map that misplaced the location of the marine sanctuary. The Navy said digital nautical charts contained inaccurate data and may have been a factor in the Guardian's grounding. Navigator of the Navy Rear Adm. Jonathan White released precautionary guidance to all Pacific Fleet ships, saying that "initial review of navigation data indicates an error in the location of Tubbataha Reef" in the Philippines. The US Navy has sent an assessment team that would plan and execute the delicate extraction of the American minesweeper from the Tubbataha Reef with the least damage on the marine sanctuary where it has been trapped since Thursday, the unit's Japan-based fleet has said. Strong winds and waves have pushed the ship to be parallel to the reef line, the Inquirer learned on Saturday. "If you remember the pictures that came out yesterday (Friday), the ship was still perpendicular to the reef line but because of the winds and waves, which are really strong now, the ship moved some 90 degrees and is now parallel to the reef line," a source from the military told the Inquirer.
Food & Agriculture
Mexico's FEMSA buys Coca-Cola PH in all-cash deal, Rappler, Jan 25
Mexico-based Coca-Cola FEMSA S.A.B. de C.V. finalized its US$688.5 million purchase of a 51% stake in Coca-Cola's Philippines bottling operations. In a disclosure to the New York and Mexican stock exchanges on Thursday, January 24, FEMSA said the closing of this all-cash transaction will be effective January 25, 2013. The deal price represents a $1,350 million valuation of the entire Philippine unit. The largest independent Coca-Cola bottler in the worldannounced the deal in December 2012, effectively transferring control of Coca-Cola Bottlers Philippines, Inc. (CCBPI) to FEMSA from the Atlanta-based parent Coca-Cola Company.
Agriculture key to inclusive growth, BusinessWorld, Jan 22
THE KEY to strong, sustained and inclusive growth in the Philippines is the performance of the agriculture sector. Agriculture accounts for a significant, though decreasing, share of gross domestic product (GDP) and is the source of employment of roughly 40% of Filipino workers. A great majority of the poor, approximately 70%, live in rural hinterlands and their livelihood are tied up with agriculture, fishery, or forestry. Balisacan: Grow agriculture to meet MDGs, Rappler, Jan 23
The Philippines needs to grow its agriculture sector, which employs majority of the country's poor, if it wants to meet the Millennium Development Goals (MDGs). Before agriculture growth can trickle down to the poor however, the sector must sustain a growth of at least 4% for several years, National Economic and Development Authority (NEDA) Director General Arsenio Balisacan told Rappler on Wednesday, January 23. "In practically all countries, and there's a good reason for it, the agriculture sector usually grows slower than the rest of the country but if you can manage to grow at 4%, that's good. If you sustain that over a long period, that's remarkable," Balisacan said.
PHL to create disaster-preparedness program for farmers, Business Mirror, Jan 20
THE Philippines will create a program on how to prepare the farming community in protecting itself more effectively against extreme weather conditions, which the country can share with its Southeast Asian neighbors. In his speech at the two-day Disaster Preparedness and Response Orientation and Workshop, held at the Philippine International Convention Center in Pasay City over the weekend, Agriculture Secretary Proceso J. Alcala said the program's goal is to protect the gains and livelihood of farmers and fishermen, as well as public investments like irrigation systems, post-harvest facilities and farm-to-market roads. "Let's harmonize our efforts and resources, as we craft a comprehensive disaster-preparedness program to better protect farming and fishing areas against typhoons and floods," Alcala urged the workshop participants and attendees, which included key Department of Agriculture (DA) officials and coordinators of commodity banner programs. Part of this program is a system of pre- to post-calamity reporting that would smoothen the response of concerned agencies and partner-institutions. "We hope to come up with a better, more effective scheme that would serve as a template for centralized and organized reporting before, during and after calamities or disasters," Alcala said.
Aquino receives Coca-Cola FEMSA execs in Malacanang, philSTAR, Jan 22
President Aquino received in Malacañang yesterday chief executive officer Carlos Salazar Lomelin of Coca-Cola Fomento Económico Mexicano - the largest franchise bottler of Coca-Cola products in the world. Coca-Cola FEMSA, indicated its first entry in the Philippines through an announcement to acquire a majority stake in The Coca-Cola Company's Philippines bottling operation. Lomelin, together with Juan Ramon Felix, Coca-Cola FEMSA director for Asia division and Juan Dominguez, Coca-Cola FEMSA director of human resources and corporate affairs for Asia division, visited President Aquino in the Palace. Lomelin expressed Coca-Cola FEMSA's plans for the Philippines, and the vision of the company for its future endeavors with the Philippine government. The visit was an opportunity for Coca-Cola FEMSA to exemplify their firm belief and confidence in the government and economy and to demonstrate their commitment to continuously strengthen and enhance the legacy of their brands in the Philippines. "We are very honored to meet President Aquino and we look forward to a successful relationship with the Philippine government, as we explore additional growth and investment opportunities in our home in Asia." Lomelin said.
DA forecasts flat growth in H1 rice harvest, Business Mirror, Jan 23
RICE production in the first half of 2013 would be flat, the Department of Agriculture (DA) said on Wednesday. In a report, the DA-Bureau of Agricultural Statistics (BAS) forecast palay (unhusked or unmilled rice) production at 7.90 million metric tons in the January to June period, or 0.1 percent more than 2012's 7.89 MMT. The BAS said harvest area would inch up also by 0.1 percent to 2.038 million hectares from 2.036 million hectares in 2012. Likewise, yield per hectare may remain the same as in 2012 at 3.88 MT. Based on standing crop, production in the first quarter of the year is forecast at 4.27 MMT, or 7.1 percent more than last year's 3.99 MMT. Probable harvest area at 1.12 million hectares is 3.8 percent bigger than the 2012 record of 1.08 million. The additional planted area is in Region 2 (Cagayan Valley).
Infrastructure
MPIC raises P6.2B for projects, Inquirer Business, Jan 23
Pangilinan-led Metro Pacific Investments Corp. (MPIC) has raised P6.2 billion through the issuance of new shares via equityplacement, as it pursues government public-private partnership (PPP) projects in various industries. "We are beginning to see momentum in the government's PPP initiative," company chairman Manuel V. Pangilinan said in a statement. "Bidding processes, including prequalification requirements, are already running for the LRT (Light Rail Transit) 1 and Cebu-Mactan airport, and we believe the government will soon commence the bidding for the Cala (Cavite-Laguna) Expressway," he said. He said MPIC was "well-placed" to participate in all three multibillion-peso projects and other infrastructure contracts that the Aquino administration planned to bid out.
Maynilad Allots P17B For Projects, Manila Bulletin, Jan 21
Metro Pacific and DMCI-led Maynilad Water Services, Inc. (Maynilad) is set to invest P17.2 billion this year for its water and wastewater projects, which is more than double its capital expenditure in 2012. This will be Maynilad's biggest annual capital investment since it was privatized in 1997. Maynilad's infrastructure budget will be funded by internally generated funds and the recently secured loan from the World Bank. Around P9.303 billion of the P17.2- billion capital investment will go to the construction of wastewater facilities in several areas of the West Zone, such as Sewage Treatment Plants and conveyance systems for Valenzuela, Pasay, and Muntinlupa.
Meetro Pacific, Citra Manila split cost of common road, 37.5-62.5, InterAksyon, Jan 24
Metro Pacific Tollways Corp (MPTC) said it has agreed to the terms set by the government for the construction of a common alignment of two expressways linking the north and south of Manila. Manuel V. Pangilinan, chairman of MPTC, said the company will shoulder 37.5 percent of the P7 billion cost of the common alignment, while Citra Metro Manila Tollways Corp will assume the remaining 62.5 percent. MPTC and Citra Manila are pursuing separate projects that would link the North Luzon Expressway (NLEX) to the South Luzon Expressway (SLEX). MPTC, through Manila North Tollways Corp, operates NLEX, while Citra Manila runs SLEX. Their projects however will share a 5-kilometer stretch of road from Buendia Avenue in Makati City to the Polytechnic University of the Philippines campus in Sta. Mesa, Manila. The common road is viewed as the most profitable stretch of either project since the volume of traffic at that segment would be the highest. The original proposal was for a 3-kilometer common road from Buendia to Plaza Dilao in Paco, Manila. "I believe we will set up toll plazas on our side so as far as I can recall for the south bound traffic or those crossing our toll booth the revenues will belong to us and the revenues that will derive from their toll plaza will belong to them," Pangilinan said. MPTC plans to construct the 13-kilometer NLEX-SLEX Connector Road for P25.56 billion, which the board of the National Economic and Development Authority (NEDA) approved recently.
Aquino approves P147-B infra projects, Inquirer News, Jan 19
President Benigno Aquino III on Friday approved five big-ticket infrastructure projects that will costa whopping P146.9 billion. Two of the projects are designed to decongest traffic and cut travel time in the National Capital Region and outlying provinces. The infrastructure projects will be funded through a combination of official development assistance (ODA) loans and government equity. Most of these projects will be implemented from 2013 to 2018 and will not be completed until after Mr. Aquino's term ends in 2016. "All these projects are meant to promote inclusive and rapid growth," Ricky Carandang, head of the Presidential Communications Development and Strategic Planning Office, told reporters following a Palace meeting of the National Economic and Development Authority (Neda) board, which approved the projects. The President chairs the Neda board.
DOTC urged to rethink Mactan airport bid rules, philSTAR, Jan 21
The Department of Transportation and Communications (DOTC) will likely revisit its decision preventing companies with airline interests from bidding for the multi-billion-peso contract to develop the Mactan-Cebu International Airport, a ranking government official said. The official said some members of the government's economic team have urged the DOTC to review the decision because it would discourage foreign airport investors from participating in the project. The government has been trying to attract foreign investors into its Public-Private Partnership (PPP) projects, including the Changi Airport Group of Singapore. Local airlines such as Cebu Pacific of the Gokongwei Group have flights between Mactan, Cebu and Singapore. "We are trying to attract foreign investors and this decision will not help in that," said the government official.
SMC, Metro Pacific reach deal on road project, Business Inquirer, Jan 21
The San Miguel and Metro Pacific groups have struck a compromise on the P7-billion, five-kilometer common alignment for their respective North Luzon-South Luzon Expressway connector road projects, allowing their major infrastructure projects to move forward. Inquirer sources said top representatives from the rival groups, which are building separate road networks, met with Transportation Secretary Joseph Emilio Abaya and Public Works and Highways chief Rogelio Singson last week. Upon the government's prodding, they were prompted to come up with a consensus framework on the common alignment, which will run from Gil Puyat Ave. (formerly Buendia) in Makati City to the Polytechnic University of the Philippines in Sta. Mesa, Manila.
Metro Bus Terminals Still Feasible, Manila Bulletin, Jan 18
Eleven months after Malacañang ordered the establishment of an integrated transport system (ITS), the construction of centralized provincial bus terminals in northern and southern Metro Manila is still at the feasibility stage, according to the Department of Transportation and Communications (DOTC). Only two of the three proposed common bus terminals have definite locations, the southern ones projected for construction at the Food Terminal Inc. (FTI) Complex in Taguig City and at the Philippine Reclamation Authority (PRA) property along the Coastal Road in Parañaque City. "There is a special situation in the north, wherein the venue can be unsolicited or can be turned into solicited," said Transportation and Communications Secretary Joseph Emilio Abaya.
Gov't sets bid for NAIA expressway proj, philSTAR, Jan 17
Philippine Amusement and Gaming Corp. chairman Cristino Naguiat Jr. said the expressway project linking three terminals of the NAIA with each other and to the Entertainment City along Roxas Boulevard is up for bidding either in the first quarter or second quarter of the year. According to the Department of Public Works and Highways' website, submission of bids for the project is due on Feb. 26 while the notice of award has been scheduled in April. The government originally set the bidding in June 2012 but postponed it to this year to give interested parties more time to finalize their bids.
Manufacturing & Retail
Garments exports reached $2b in 2012, Business Mirror, Jan 22
The government may have been able to hit its target of increasing Philippine garments exports by 5 percent on year to $2 billion in 2012 due to robust demand for local garments, the Department of Trade and Industry said. Trade Undersecretary Cristino Panlilio said the increase in the country's garments exports is being driven by the entry of Chinese manufacturers who are keen on the local garments sector. "There are many Chinese garments companies coming to the Philippines [and] they are driving up garments exports here," Panlilio told reporters in an interview. The trade department noted that garments exports have been on the uptrend in recent years. From the $1.7 billion recorded in 2010, revenues from Philippine garments exports went up to $1.89 billion in 2011. The Philippines hopes to boost garments exports with the passage of the Save Our Industries Act (SAVE Act) in the United States.
Robust growth for retail sector seen, philSTAR, Jan 24
The Philippine Retailers Association (PRA) expects robust growth for the retail sector this year given consumers strong purchasing power on the back of the country's positive economic performance. "We're expecting double-digit growth for the retail sector this year," PRA president Frederick Go told reporters at the sidelines of the 16th Outstanding Filipino Retailers and Shopping Centers of the Year Awards Night. He said that according to the Business Monitor International, which provides consultancy and industry analysis, the country's total retail sector was estimated at P1.42 trillion last year. He said the PRA sees growth for the retail sector this year given the country's positive economic conditions.
The Philippines goes Apé!, Business Mirror, Jan 24
AUTOITALIA Philippines Enterprises Inc. (APE Inc.), official distributor of the Piaggio Apé commercial vehicles in the country, added another product to its long line when it launched four model variants of the Apé (pronounced ah-peh) on January 11 at Piaggio Otis in Manila. The three-wheeled Apé, which is the Italian word for honey bee, is designed as a sturdy, 24/7 workhorse intended for the mobile business market. It can be registered as a non-conventional vehicle and can run on both primary and secondary roads inside and outside the metropolis. An innovation in the transport industry, APE Inc. offers a more cost-efficient, reliable and eco-friendly means of giving back the Pinoy entrepreneur's money's worth. It has a fuel consumption of 30 to 36 km per liter, which is far more efficient compared to its rivals that can only manage less than 20 km per liter.
The Philippines: Retail march of the malls, Business World, Jan 17
CONTINUED EXPANSION of the economy and the increasing reach of leading shopping chains outside the major cities will help drive growth in the Philippines retail sector in the medium term. However, there is also a possibility that smaller outlets could be swamped by the rising tide of malls and large-scale developments. Retail is one of the biggest economic sectors in the Philippines and is set to grow as private spending power increases. According to the Philippine Retailers Association -- the industry's professional group -- the sector directly accounts for around 15% of the Gross National Product (GNP) and roughly one-third of the national services sector. It is also one of the main employers, providing work for around 5.25 million Filipinos, 18% of the national total.
Car sales post 11% growth, philSTAR, Jan 11
Car manufacturers reported an 11 percent rise in sales in 2012 from the previous year, driven by consumers' strong demand for commercial vehicles and passenger cars. The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) said yesterday it sold 156,649 units last year compared to 2011's 141,170 units. The growth was supported by an increase in both commercial vehicles and passenger cars. Commercial vehicles, which made up the bulk or 69.15 percent of total sales, went up 12.2 percent to reach 108,324 units from 2011. Passenger car sales which accounted for 30.85 percent of total sales, grew by 8.4 percent to 48,328 units from the previous year.
Information/Communication/Technology
Google Opens Office in Manila, WSJ, Jan 23
Google is expanding its presence in the Philippines, opening its first office in the increasingly Internet-savvy Southeast Asian country. "The Philippines is a key country in Southeast Asia in terms of its digital economy and tech-savvy population," Julian Persaud, managing director of Google in Southeast Asia, said at an event Wednesday marking the milestone office in Manila. "This new office will allow us better engage with our local users, partners and advertisers." Google's move reflects the growing use of the Internet in the Philippines. According to a report by the Asia Digital Marketing Association, 33.6 million Filipinos tapped into the Internet in 2011. That's already about one third of the population. By 2016, the report said, 59 percent of the population will be turning to the Internet, for everything from shopping to building a business to connecting with friends.
Towards a paperless judicial system, BusinessWorld, Jan 22
IN HER first speech as Chief Magistrate, Chief Justice Maria Lourdes P. A. Sereno emphasized the need of the Judiciary to cope with the developments in technology to hasten the delivery of justice. Consistent with her proposed reforms for the Judiciary, the Supreme Court issued A. M. No. 11-9-4-SC, otherwise known as the Efficient Use of Paper Rule (the "Rule"), on Nov. 13, 2012, which applies to all courts and quasi-judicial bodies under the administrative supervision of the Supreme Court. The Rule took effect on Jan. 1. 2013.
Balancing Rights In Social Media, Manila Bulletin, Jan 22
The passing of the Anti-Cybercrime Bill in September last year provoked a nationwide, multi-sectoral reaction. From media groups to the academe, Internet users protested what they believe is a law that curtails individual freedom of expression on the Internet, and other constitutional rights. The protest actions were pervasive, taking place in the streets, in the papers, and in social media, especially Facebook and Twitter. A temporary restraining order subsequently issued by the Supreme Court brought about some much-needed sobriety in the midst of what threatened to become a full-blown political crisis for the administration of Philippine President Benigno S. Aquino III. At least until last week, when the scheduled first of two days of oral arguments brought protesters out to the streets again as the Supreme Court justices began examining the arguments, hopefully, objectively.
Smart to cap wireless LTE plan, philSTAR, Jan 23
Smart Communications Inc., the wireless arm of dominant carrier Philippine Long Distance Telephone Co. (PLDT), is set to cap its data plan for its wireless broadband service long term evolution (LTE) starting next month. In a statement, Smart said a 5GB allocation would take effect after Jan. 31. Lloyd Manaloto, head of Smart Broadband Internet and Data Services, said the PLDT subsidiary launched its fastest wireless broadband service more affordable than ever as it unveiled the new Smart LTE Broadband Plan 1299. As a special treat for early adopters, Manaloto said Smart LTE Broadband Plan 1299 could be used on an unlimited basis until Jan. 31. He added that subscribers also have the option to avail of a pocket wifi device for a one-time fee of just P2,000. "With the Smart LTE Pocket WiFi, all of your devices can now run on the power of LTE.
Google furthers Philippines investment with office opening, ZDNet, Jan 23
Google has launched a new office in Manila, Philippines, in a bid to strengthen its investment in the country and expansion within Southeast Asia. According to a statement made on Wednesday by the search giant, the new office is part of Google's ongoing efforts to provide and improve services for its Filipino users, help the country's businesses grow, both locally and globally, and tap local talent. "The Philippines is a key country in Southeast Asia in terms of its digital economy and tech-savvy population," Julian Persaud, managing director of Google Southeast Asia said in the statement. According to Persaud, more than 33 million Filipinos access the Internet regularly, and Internet usage is set to grow exponentially. Presidential Communications Undersecretary Manuel Quezon III said in the same statement that the government hopes Google's entrance will encourage more local businesses to go online and tap international markets. The new office, headed by Narciso Reyes, former head of sales at Google Philippines, is currently looking to hire, and job openings will be posted on its local jobs pages "in the coming days."
Pinoys buying more flat TVs, Business Mirror, Jan 22
THE Philippines proved the fastest growing market for flat-panel TVs in 2012, far faster than Indonesia, Malaysia or Thailand, according to research firm GfK Asia Pte. Ltd. In an e-mail, Seraphina Wee, GfK regional manager for communications, said flat-panel TV in the region continued to surge across the region and was fastest in the Philippines. Wee noted that flat-panel TVs continued to register a surge in demand in 2012, selling over 8.3 million units in the first eleven months or a 26-percent volume growth over the same period the previous year. She said liquid crystal display (LCD) TV were the most sought after TV type across the region, making up more than nine out of 10 sets purchased by Southeast Asian consumers. Four of the six markets tracked by GfK-Malaysia, Vietnam, Thailand and Indonesia-registered 10-percent to 70-percent spike in sales quantity of LCD TV in the respective countries. Wee sent data by e-mail showing the Philippine flat TV market having grown by 70 percent, faster than the next fastest market, Indonesia whose market grew by only 67 percent.
'Phl populous nation with low Internet access', philSTAR, Jan 17
The Philippines is one the world's most populous nations with low home Internet access, a recent survey by US-based research institute Gallup showed. Only 21 percent of respondents in the Philippines said yes when asked, "Does your home have access to the Internet?" while 79 percent said no. The other countries where home Internet coverage is low are Indonesia, Pakistan, Nigeria, Bangladesh, and Mexico, the Gallup 2011 report showed. The poll showed that China and India are two of the world's most populous nations where "home Internet coverage as a percentage of adults may be relatively slow to increase." The poll used face-to-face interviews of at least 1,000 adults in each country. Access to the Internet at home was highest in Sweden and Singapore, Gallup said.
Customs
DTI lines up export trade promotion activities for 2013, PIA, Jan 25
The Department of Trade and Industry (DTI) has identified programs and projects to contribute in the country's export growth target for this year. "To exceed last year's export growth and to contribute in attaining the country's goal of US$120 billion exports by 2016, we will continually employ helpful market and product strategies in our programs and projects to promote exports in 2013," Bureau of Export Trade Promotion (BETP) Director Senen M. Perlada said in a statement. From January to November 2012, Philippine merchandise exports grew by 6.97 percent from US$44.90 billion in 2011 to US$48.02 billion in 2012. China, including Hongkong, was the top destination of Philippine exports accounting for 21.11 percent of total export receipts. Japan was the second biggest buyer of Philippine products with 19.09 percent share.
Senate ratifies bill lifting foreign carrier tax, Business World, Jan 23
A MEASURE lifting taxes on international air and shipping carriers was ratified by the Senate Wednesday afternoon. The joint panel approved Wednesday noon the measure seeking to exempt international carriers from common carriers tax (CCT) and from gross Philippine billings tax (GPBT) on the principle of reciprocity. "The removal of these taxes will improve the present situation where our tax policies seem to directly contravene our tourism goals," Senator Franklin M. Drilon, sponsor of the measure, was quoted as saying in a press release today. Foreign carriers are currently required to pay a 2.5% GPBT and 3% CCT, which have been tagged as pushing up costs. The issue has led to the end of direct flights from Manila to Europe.
Interest in TPP deal expressed anew as US executives visit, Business World, Jan 24
THE PHILIPPINES could finally seek entry to the proposed Trans-Pacific Partnership (TPP) after President Benigno S. C. Aquino III again expressed interest in a meeting with US business leaders yesterday. They [businessmen] asked questions on TPP. The President said we are interested in pursuing the TPP," said Trade Secretary Gregory L. Domingo, who was present at the meeting "They raised it as a question... They [businessmen] are for it," he added. The TPP, currently being discussed by 11 countries, is expected to further liberalize trade in the Asia-Pacific region. The Philippines, while expressing interest, has balked at the inclusion of non-trade standards as prerequisites for membership.
11-month remittances hit $19.42B, Inquirer, Jan 16
Money sent home by Filipinos overseas amounted to $1.92 billion in November, up 7.6 percent from $1.78 billion in the same month last year, the Bangko Sentral ng Pilipinas reported Tuesday. This brought remittances for the first 11 months of 2012 to $19.42 billion, up 6 percent from $18.32 billion in the same period in 2011. "Remittances continued to draw strength from the increasing demand for skilled and professional Filipinos along with innovations in remittance service offered by banks and financial institutions," the BSP said in a statement. The move of some banks to tie up with remittance centers abroad and the initiative of others to put up their own money-transfer facilities in foreign cities that host overseas Filipino workers also encouraged the sending of more money to the Philippines. Remittances to the Philippines came mostly from migrants based in the United States, Canada, Saudi Arabia, United Kingdom, Japan, United Arab Emirates and Singapore. The BSP said there was a likelihood that remittances over the short to medium term would continue to grow given the continued deployment of a significant number of Filipinos to fill in job vacancies abroad. Citing data from the Philippine Overseas Employment Administration (POEA), the BSP said there were 782,201 job orders for Filipino workers that were filed by foreign employers and approved by the POEA. The job orders came mostly from employers in Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Taiwan and Hong Kong.