| Regional Affairs
PHL needs ro build more infra to be SEA's MICE club Business Mirror 21st Mar 2015
The Philippines is being urged to hasten its infrastructure development in order to achieve the government’s goal of transforming the country as the meetings, incentives, conferencing, exhibitions (MICE) tourism hub in Southeast Asia. KMC MAG Group Inc. Head of Operations and Investments Jose Carmelo Porciuncula told reporters that infrastructure remains a challenge for the country to attain its target of 10 million foreign tourist arrivals by 2016. “This is a wonderful target for the country, but there is a challenge with current infrastructure, including our airports,” Porciuncula said.
DOF's Purisima pushes for ASEAN tax ID System Business MIrror 20th Mar 2015
The Philippines will raise the idea of a regional tax identification number (TIN), when Finance Secretary Cesar V. Purisima attends the 19th Association of Southeast Asian Nations (Asean) Finance Ministers’ Meeting this weekend in Kuala Lumpur, Malaysia. Purisima said the idea of an Asean TIN, similar to the Asia-Pacific Economic Cooperation (Apec) TIN that the Philippines is introducing in its hosting of the Apec meetings this year, will encourage growth in the Asean because it will provide better access to credit and finance, especially for small and medium enterprises (SMEs).The Apec TIN is part of the Philippines’s Cebu Action Plan, which will be launched in September in Cebu as part of the Philippines’s hosting of the Apec meetings this year.
PHL 86% ready for ASEAN integration Business Mirror 24th Mar 2015
The leadership of the House of Representatives on Sa ay downplayed the reported plans to impeach President Aquino in connection with the ill-fated Mamasapano mission that ed 44 Philippine Jr. said that an impeachment complaint should be credible
PHL-Efta trade talks to begin this month Business Mirror 16th Mar 2015
The trade department is confident that a free-trade agreement (FTA) with the European Free Trade Association (Efta)—a bloc of wealthy European countries that can become a major export market for certain sectors—can be completed by 2016, as the first round of negotiations is set to begin this month. “It’s doable. We did studies on that, and our economies are complementary. We already did a round of consultations last year and started scoping talks last year. An agreement with Efta can be done by 2016,” Trade Undersecretary Adrian S. Cristobal told reporters at the sidelines of the Gathering of Industry Champions hosted by the Board of Investments (BOI). Trade Secretary Gregory L. Domingo earlier expressed the same sentiment, as most of the groundwork for an FTA has already been laid down in the past year.
National Affairs
S&P: Philippine banking system most resilient in Asia-Pacific region Business Mirror 24th Mar 2015
The Philippine banking system remains the most resilient in the Asia-Pacific region, as indicated in the most recent assessment made by an international credit watcher. In a recent webinar, Standard & Poor’s (S&P) Ratings Services presented the heat map of the Asia-Pacific Banking Outlook for 2015, in which the Philippines remained largely insulated against shocks in the local and international developments that may emerge in 2015.
NCMF pushes for Islamic financing Business Mirror 23rd Mar 2015
The National Commission on Muslim Filipinos (NCMF) is promoting Islamic finance in the country to encourage the greater economic participation of Muslim Filipinos. NCMF Bureau of Muslim Economic Affairs Director IV Aleem Siddiqui Matabalao Guiapal said Islamic finance is expected to spur commercial activities by attracting Islamic funds and investments, particularly from Muslim countries. “The main principles of Islamic finance are interest-free financial transactions, risk-and-return sharing, socially responsible investments, and prohibition of activities deemed not permissible in Islam,” he said.He cited reports, which showed that global Islamic financial assets have been growing rapidly and is now estimated at $2 trillion. The Halal food-and-beverage market has grown to a $1.1-trillion industry in 2013, which indic
Binay wants Roxas as running mate – 'seriously' CNN 23rd Mar 2015
Imagine Vice President Jejomar Binay and Interior Secretary Manuel Roxas II — perhaps two of the country’s most bitter rivals during the 2010 elections — going for the top two posts of the land in May 2016 as running mates? And, believe it or not, the idea came from no less than Binay himself.
House leaders downplay impeach Aquino plans Business Mirror 22nd Mar 2015
The leadership of the House of Representatives on Saturday downplayed the reported plans to impeach President Aquino in connection with the ill-fated Mamasapano mission that killed 44 Philippine National Police-Special Action Force commandos. Speaker Feliciano Belmonte Jr. said that an impeachment complaint should be credible enough to unseat the President. “Anybody can file an impeachment complaint [against the President]. And if it is duly endorsed by a [House] member, then it will be entertained by the House,” he said. “But on the basis of all the evidence from the two reports I have read, I don’t think it could reach first base in this chamber,” Belmonte said, referring to the reports on the Mamasapano massacre of the Board of Inquiry (BOI) and the Senate
42% of Pinoys don’t want Noy to resign Philippine Star 19th Mar 2015
Four out of 10 Filipinos or 42 percent do not want President Aquino to quit his post amid criticisms over the mishandling of the Jan. 25 Mamasapano operation, Pulse Asia’s latest survey showed. The survey, conducted from March 1 to 7, showed that 29 percent agreed with and 28 percent were undecided on the President’s resignation. Presidential Communications Operations Office Secretary Herminio Coloma Jr. said the Pulse Asia survey shows that a majority wanted the President to continue fulfilling his duties. “Because of that the President and the administration will show utmost perseverance, determination and hard work to be deserving of their trust and support,” he said.
PNoy owns up to SAF44 tragedy Manila Bulletin 17th Mar 2015
President Aquino has already accepted “personal responsibility” for the Mamasapano operation and remains committed to pursuing truth and justice over the tragedy, Malacañang said yesterday after the Chief Executive suffered a record-low in his trust and approval ratings. “From the outset, the President has acknowledged his personal responsibility, as when he declared on February 6 in a message televised nationwide,” Presidential Communications Operations Secretary Herminio Coloma Jr. said. But the President is still unlikely to apologize for the Mamasapano debacle despite the all-time low rating, Coloma said. Instead, he said, the President and his government will continue to make people understand the events related to the Mamasapano operation.
BOI: P-Noy broke chain of command Philippine Star 17th Mar 2015
The chain of command in the Philippine National Police was broken by President Aquino himself when he allowed then suspended PNP chief Director General Alan Purisima to take part in Operation Plan Exodus. This was among the key conclusions of the PNP Board of Inquiry (BOI), which investigated the police operation to get high-value terrorists in Mamasapano, Maguindanao last Jan. 25. In its report, the BOI said Purisima provided inaccurate information to the President while then Special Action Force (SAF) commander Director Getulio Napeñas committed lapses in implementing Exodus and erred in taking orders from a suspended superior. The report said President Aquino violated the PNP chain of command when he “exercised his prerogative” by directly dealing with Napeñas instead of with PNP officer-in-charge Deputy Director General Leonardo Espina before and during the SAF operations.
Congress unlikely to pass resolution on grant of extra powers to Aquino Business Mirror 17th Mar 2015
Consumers should be ready to pay higher electricity bills as Liberal Party Rep. Reynaldo Umali of Oriental Mindoro, chairman of the House Committee on Energy, on Monday said Congress may not be able to pass a resolution granting President Aquino special powers to address power shortage due to lack of time. Umali said that, should bicam negotiations for the measure fail, the Interruptible Load Program (ILP) can still function, but the cost will have to be passed on to consumers, in accordance with protocols established by the Energy Regulatory Commission.
President ‘ultimately responsible’ for bloodbath Business World 17th Mar 2015
President Benigno S. C. Aquino III is “ultimately responsible” for a police mission that led to the deaths of 44 commandos, 18 Moro rebels and five civilians. Senator Grace Poe-Llamanzares made these remarks in a press conference on Tuesday, where she revealed contents of a 120-page initial draft of the Senate joint committee report on what she renamed as the Mamasapano “massacre.” The report, a product of five public hearings and five executive sessions, also held assigned liabilities to Special Action Force (SAF) commander Getulio P. Napeñas, former Philippine National Police chief Alan L.M. Purisima, and the Moro armed rebels involved in the carnage.
Aquino approval rating falls Business World 17th Mar 2015
The approval rating of President Benigno S. C Aquino III has fallen to its lowest after the Mamasapano fiasco, which may curtail the administration’s push for key legislative measures including much-awaited economic reforms according to analysts, even though business groups remain hopeful. The latest Pulse Asia survey, which was conducted from March 1 to 7, and was released on its Web site on Tuesday said Mr. Aquino’s approval rating plummeted 21 points, from 59% in November last year to 38% in March. Mr. Aquino’s trust rating also fell from 56% to 36% in the same period, the report indicated. “This is the first time the President has posted non-majority national approval and trust ratings in Ulat ng Bayan surveys since he was first rated as President by survey respondents back in October 2010,” the Pulse Asia media release said, adding that the figures also are “his lowest national approval and trust raings since assuming the presidency in 2010.”
Lawmakers weigh options on impeach moves PhilStar 14th Mar 2015
Lawmakers are studying the possibility of filing an impeachment complaint against President Aquino for his actions in implementing Oplan Exodus, citing the widespread public clamor to hold him accountable for the deaths of 44 police commandos and five civilians during the operation to arrest two international terrorists in Mamasapano, Maguindanao last Jan. 25. Senior administration lawmakers, however, dismissed such moves, saying elections are fast approaching and an impeachment complaint could distract Congress from acting on urgent socio-economic measures.
Ombudsman suspends Mayor Binay, 20 others over Makati building Manila Bulletin 13th Mar 2015
Ombudsman Conchita Carpio Morales has suspended Makati Mayor Erwin Binay for six months pending result of the preliminary investigation into the alleged overpriced construction of the Makati City Parking Building. In the official twitter account of the Office of the Ombudsman, Morales also issued the same preventive suspension against 20 other City Hall officials implicated in the controversy but many of them have left government service. ... Vice President Jejomar Binay who is also included in the criminal complaint for signing the original building project while he was city mayor was excluded from the suspension order because the vice-presidency is outside the jurisdiction of the Ombudsman. The Vice President and the other respondents were charged with violating the Government Procurement Act.
Customs
Manila City Hall’s truck ban wasted P43.85 billion–PIDS study Business Mirror 20th Mar 2015
The Philippine economy lost an estimated P43.85 billion due to the seven-month truck ban imposed by the city of Manila last year, according to a study released by state-owned think tank Philippine Institute of Development Studies (PIDS). In a study titled A System-wide Study of the Logistics Industry in the Greater Capital Region, PIDS researchers led by Epictetus E. Patalinghug said the amount included lost Customs revenue, output losses, and vehicle operating costs.
Measure seeks to tag P50-M illegal importation, exportation as ‘heinous crime’ The Philippine Star 18th Mar 2015
Illegal importation and exportation of goods with an appraised value of more than P50 million will be considered a heinous crime under the proposed Customs Modernization and Tarriff Act (CMTA). The measure, which will replace the Tariff and Customs Code of the Philippines, is seen to bring the Philippines at par with global customs administration standards and curb smuggling. The Department of Finance is once again lobbying for the immediate passage of the CMTA to help boost government’s collection of taxes and dues and promote faster, efficient and transparent trade transactions. “The Bureau of Customs collected P369.3 billion in 2014, 21 percent higher than what was collected in 2013 on the back of painstaking reforms and plenty of hard work. But our work is far from over. CMTA will etch further reforms into law and enable us to institutionalize the ongoing transformation of the (BOC)into an efficient and responsive revenue agency,” Commissioner John P. Sevilla said in a statement. Finance Undersecretary Carlo A. Carag of the Revenue Operations and Legal Affairs Group said the modernization and policy changes to be institutionalized with CMTA will allow the BOC to sustain if not break records in terms of collections.
Drilon supports creation of trade office Manila Standard Today 16th Mar 2015
The Senate has committed to pass measures seeking to establish institutions that will help the Philippines move toward liberalization by June 2015. “We will create two new offices: a Philippine Trade Representative Office, which will serve as the country’s central agency tasked to formulate a cohesive trade strategy and, second, a Department of Information and Communications Technology to support the development of our ICT systems, and put us at par with Asean economies which have cabinet level departments for information and communications technology,” Senate President Franklin Drilion said.
Government plans to spend P1.7B to support exporters The Philippine Star 16th Mar 2015
The government is planning to spend P1.7 billion to support exporters under the Philippine Export Development Plan (PEDP). Senen Perlada, executive director of the public-private Export Development Council (EDC) and director of the Department of Trade and Industry’s Export Marketing Bureau told reporters that a budget worth about P1.7 billion has been proposed under the PEDP 2014 to 2016. “We’re implementing it (PEDP) already…expect for those which need financing,” he said. Trade Undersecretary Ponciano Manalo Jr. told reporters the Department of Budget and Management (DBM) has asked the Department of Trade and Industry (DTI) to submit details on the proposed budget. “The fund will be used for financing of small and medium exporters. There is a line item for quality index products and also a component for promotions,” he said. The PEDP sets targets and strategies to grow exports from 2014 to 2016.
DTI to amend rules on product certification (correct) Inquirer 13th Mar 2015
The Department of Trade and Industry wants to revise the rules and regulations of its product certification scheme to streamline procedures so that current practices will be on a par with international standards. The proposed revisions are expected to ease doing business in the Philippines, improve national competitiveness, and ensure safer products for consumers. “The revisions to the Bureau of Philippine Standards’ product certification scheme are timely as we align our business and consumer programs to the Association of Southeast Asian Nation (Asean) economic integration. Simultaneously, we were guided with the department’s intent to streamline its policies and procedures to ease doing business in the country,” said Trade Secretary Gregory L. Domingo.
DOF: Customs reforms hinge on crucial bill Inquirer 23rd Mar 2015
Finance officials on Tuesday said that they would push for the speedy passage of the proposed customs modernization and tariff act to sustain the reforms being implemented at the Bureau of Customs (BOC). In a statement, the Department of Finance (DOF) said that, once legislated, the measure would “institutionalize and consolidate reforms in what would be the most improved national government agency in terms of collections growth.”
Passed by Senate, Cabotage Law amendments await House action Manila Bulletin 20th Mar 2015
The priority measure of President Benigno S. Aquino III to amend of the Cabotage Law had incited differing positions among lawmakers despite the ultimate aim of lowering local shipping costs. Two years after Aquino made the call to loosen up trade and navigational restrictions on Philippine waters, Congress is yet to decide whether to totally lift the Cabotage Law and liberalize the entry of foreign vessels into the country or to merely introduce reforms so as to continue protecting the local shipping industry from being decimated by foreign players. While Senate Bill 2364 – which seeks to exempt the carriage of container vans from the Provision of Section 1009 of Presidential Decree No. 1464, or otherwise known as the Tariff and Customs Code of 1978 – has already been passed to third and final reading by the Upper House last month, its counterpart in the Lower House, House Bill 2623, remains pending at the committee on transportation. With several suggestions at the Lower House, including a proposal for a total repeal of the cabotage policy, one wonders if the priority measure will be enacted before Aquino steps down from office by mid next year.
Shipping industry liberalization gains broad support Manila Bulletin 18th Mar 2015
Representatives from government and industry have expressed support to a proposed bill that would allow non-Philippine-flagged carriers to load and unload international cargoes at multiple ports as long as this does not clash with existing maritime policies.
DOF urges Congress to pass Customs modernization act Manila Bulletin 17th Mar 2015
The Department of Finance (DOF) has urged Congress to pass into law the proposed Customs Modernization and Tariff Act (CMTA) to institutionalize and consolidate reforms in the agency perceived by the public as the most corrupt. The DOF, together with the Bureau of Customs, explained the speedy approval of the proposed CMTA is necessary for the agency to maintain its “improved” collections growth in the recent months. “Customs collected P369.3 billion in 2014, 21 percent higher than what was collected in 2013 on the back of painstaking reforms and plenty of hard work. But our work is far from over,” Commissioner John P. Sevilla said in a statement. “CMTA will etch further reforms into law and enable us to institutionalize the ongoing transformation of Customs into an efficient and responsive revenue agency,” he added.
How Are Firms Responding to Philippine Free Trade Agreements? Philippine Institute for Development Studies 16th Mar 2015
The Philippines has been more cautious in its policy toward free trade agreements (FTAs) than other ASEAN member-states, having signed, so far, only one bilateral agreement with Japan in addition to the various ASEAN+1 agreements. While the government is expected to progressively reduce preferential tariffs to zero, Philippine firms have historically been slow to take advantage of FTAs. This survey reaffirms that this awareness and the usage of FTAs need significant improvement among both manufacturing and services sector firms.
Customs men tighten watch on transshipments Inquirer 16th Mar 2015
The Bureau of Customs (BOC) has ordered its personnel to electronically monitor transshipments starting Monday. “Upon arrival of all of cargo which is the subject of a transshipment entry to its port of destination, the deputy collector for operations in the port of destination, her/his equivalent, or a person authorized by her/him, shall tag the entry as arrived in the e2m system,” read Customs Memorandum Order No. 07-2015 issued by Customs Commissioner John Phillip P. Sevilla last March 9. The agency’s electronic-to-mobile, or e2m, system uses Internet-based and wireless technologies that streamline processing of exports, as well as imports.
Defense & Security
Benigno Aquino’s troubles The Economist 21st Mar 2015
Over the past five years, Filipino police and armed forces have tried and failed nine times to capture Zulkifli Abdhir, a Malaysian bomb-maker better known as Marwan, who was reportedly involved in the Bali bombings in 2002 that left hundreds dead. These repeated failures made Getulio Napeñas, a former head of the Special Action Force (SAF), an elite police squad, suspicious that members of the armed forces were leaking information about operations in advance. So he organised a raid without them. On January 25th 392 SAF troops assembled at Mamasapano, a town in the Muslim-majority province of Mindanao, in the southern Philippines, to capture Marwan and two other men, Usman and Baco, who are suspected of involvement in various bombings and kidnappings. The trio were protected by fighters from the Bangsamoro Islamic Freedom Fighters (BIFF), a small secessionist group that split away from the larger Moro Islamic Liberation Front (MILF), which signed a peace agreement with the government in 2014. What was supposed to be a simple snatch and grab turned into a disaster: after a daylong firefight, 44 SAF troops were dead, along with 18 MILF fighters, at least five civilians and an unknown number of BIFF rebels. Marwan was killed; Usman and Baco escaped.
Phl to buy 24 more combat aircraft from South Korea The Philippine Star 20th Mar 2015
The Philippines is planning to purchase 24 more combat aircraft, adding to the 12 FA-50 fighter jets it had ordered from South Korea in 2014, the Stockholm International Peace Research Institute (SIPRI) said. It did not specify when or from whom the aircraft would be ordered. The FA-50s were the first order by the Philippines for advanced combat aircraft in decades amid the increasing tensions with China over disputed territories in the South China Sea. The SIPRI report from Stockholm on Monday said the five biggest weapons exporters in 2010-14 were the United States, Russia, China, Germany and France, and the five biggest importers were India, Saudi Arabia, China, United Arab Emirates and Pakistan. The top five exporters were responsible for almost 74 percent of all arms exports.
DND to Acquire 4,464 Units of Night Fighting Equipment for PA Defense Studies 20th Mar 2015
The Department of National Defense (DND) is acquiring 4,464 units of night fighting equipment for the Philippine Army (PA). The equipment is an optoelectronic device that allows images to be produced in levels of light approaching total darkness.The image may be a conversion to visible light of both visible light and near-infrared, while by convention detection of thermal infrared is denoted thermal imaging. The program has an alotted budget of Php1,116,000,000 which will be sourced from the Capability Upgrade Program 2013 to 2017. It was formally known as the PA's "Night Fighting System Acquisition Project." Interested bidders must have completed a similar project within the last five years.
Manila: U.S. had key role in deadly counterterrorism raid in Philippines Washington Post 19th Mar 2015
U.S. counterterrorism personnel played a hidden but key role in a bungled commando operation in the Philippines that resulted in dozens of deaths and a political scandal, according to a government investigation released Tuesday in Manila. At least six Americans were present at a Philippine command post during the ill-fated January raid and supplied Philippine forces with surveillance data collected by U.S. aircraft, the investigation found. One of the Americans went so far as to order a Philippine army general to call in artillery fire, though the general angrily refused, investigators found.
Infographic: Philippines' major arms sources by country PhilStar 19th Mar 2015
The Stockholm International Peace Research Institute (SIPRI) this month generated new data on the world's major arms trade, including the top country importers to the Philippines in 2014. SIPRI's data indicates the United States and has consistently been the country's top arms trade partner, having exported $246 million worth of major arms such as aircraft, ships and armored vehicles since 2001.
Airbus Hands Over First C295 to Philippine Air Force Philippine Daily Inquirer 19th Mar 2015
The first of three Spanish Airbus C295 medium transport planes has been handed over to the Philippine Air Force. The hand over ceremonies took place in Seville, Spain, where the final assembly line is located. The plane is now being ferried to the Philippines, a press release from Airbus dated March 18 said. It added that the C295 “will play a key role in the modernization of the PAF’s transport fleet and will undertake a wide variety of military and humanitarian missions.” The planes cost a total of P5.29 billion. Air Force spokesperson Lieutenant Colonel Enrico Canaya said the plane is on its way to the Philippines. “It will still undergo an acceptance process,” he said. The twin-turboprop aircraft is capable of carrying up to nine tons or 71 soldiers, using short unprepared airstrips.
Philippine Army Arrests Leader of Muslim Rebel Splinter Group Voice of America 16th Mar 2015
Philippine security forces arrested the leader of a small but violent rebel faction in the southern Philippines, the army chief said on Monday. The government of the largely Christian country has been battling Muslim rebels for decades and while a peace process with the biggest faction has led to a decrease in violence, clashes with smaller factions and bomb attacks are common. The Philippine army flew Mohammad Ali Tambako, founder and leader of the Justice Islamic Movement, along with five associates to the Philippine Airbase in Manila for questioning. Authorities said Tambako was arrested when their group, armed with guns and grenades, was on their way to a sea port in General Santos on the island of Mindanao. Armed Forces of the Philippines Chief Gregorio Catapang said that the arrest was a big achievement in maintaining peace in the south.
Espina submits first to Roxas probers’ report on Mamasapano after troops kill 20 extremists Business Mirror 12th Mar 2015
The Board of Inquiry (BOI) created to look into the Mamasapano incident submitted its report first to Interior Secretary Manuel Roxas II on Thursday. The BOI was set to submit the results of its investigation to National Police Officer in Charge Deputy Director General Leonardo Espina early Thursday evening, but Director Benjamin B. Magalong refused to divulge their findings. Magalong, chief of the Criminal Investigation and Detection Group and head of the BOI, said they were still printing the report as of 3 p.m. on Thursday. We would sign the document and submit it to Espina, who, in turn, should have submitted the report to Roxas, according to him. Magalong’s insistence to keep contents of the report to the public came after some lawmakers and groups warned probers would move to absolve President Aquino of any tinge of wrongdoing in the police operation that led to deaths of 44 Philippine National Police-Special Action Force (PNP-SAF) commandos.
Landing Craft Get New Home Defense Studies 16th Mar 2015
The Philippine Navy will be better prepared for natural disasters when they receive two decommissioned landing craft from Australia in May. A lack of sealift ability hampered the Philippine Navy’s relief efforts to assist coastal areas devastated by Typhoon Haiyan in November 2013. The former HMA Ships Brunei and Tarakan will be commissioned into the Philippine Navy to provide additional intra-theatre sealift capability. Brunei’s last Executive Officer, Lieutenant Brenton-James Glover, said he was excited about the ships being given another opportunity to provide a much-needed service. “They were certainly the work horses of the Royal Australian Navy and I am sure they will provide just as much service to the Philippine Navy,” he said.
DND Starts Procuring Three Assault Crafts as Platform for ‘Missile Launch System’ Defense Studies 14th Mar 2015
The Department of National Defense launched an acquisition project that will increase the number of Philippine Navy’s Multi-purpose Assault Craft or MPACs. The DND-AFP is applying the amount of PhP270 million through the General Appropriations Act for the acquisition of 3 brand-new MPACS. With the said amount, three MPACs must be delivered with Mission Essential Equipment and initial Integrated Logistics Support packages. MPACs should be capable of operating at sea state five with 2.5 to 4 metres of waves or rough sea condition without systems degradation. Procurement will be through single-stage open competitive bidding. Bid opening will be on April 6. The DND also wants these three MPACs to be fitted with provisions for installation of advanced weapon system (remote weapon system as well as missile launch system). The government is procuring these three sea crafts as platforms. Missile launch system will be procured in a separate acquisition project.
Economics
Moody’s Analytics ups PHL forecast Business World 24th Mar 2015
The Economy could grow faster than initially expected this year -- albeit still below government target -- on the back of robust domestic demand and cheaper fuel prices, an economist of Moody’s Analytics said last week. “We have upwardly revised our 2015 GDP (gross domestic product) forecast to 6.6%,” Katrina Ell, an economist of Moody’s Analytics, said in an e-mail. The estimate is much faster than the 5.5% the economics research arm of Moody’s Corp. had tipped in September last year and is likewise an acceleration from the 6.1% GDP growth actually logged in 2014.
Philippines attracts foreign direct investors as growth slips in China South China Morning Post 22nd Mar 2015
The Philippines, a country historically overlooked by foreign investors, has seen the beginning of what could become a boom in factory projects as multinationals tire of rising costs and slowing economic growth in China. Six major companies from Japan and Taiwan have already picked manufacturing sites near Manila following a government effort since 2010 to play up advantages such as English-language proficiency and a tariff-elimination deal with Europe, a government representative said.
BSP signals steady policy before meet Business World 16th Mar 2015
While the number of central banks in the region that have eased monetary policy continues to expand, the Bangko Sentral ng Pilipinas (BSP) will likely stand its ground at next week’s rate review as domestic inflation remains manageable and economic activity is still robust, its head said last weekend. Financial regulators across Asia are racing to cut interest rates to keep deflation at bay and prod economic growth, with the Bank of Thailand and the Bank of Korea being the latest to slash borrowing costs just last week.
Employment rate rises Business Mirror 16th Mar 2015
The Philippine Statistics Authority announced last week that the employment rate increased since January 2014 for a year-on-year (YOY) addition of 1.04 million workers to the employment force. The employment rate grew during that period by 2.8 percent to 93.4 percent, or a total of 37.5 million employed. This is a fourfold hike over the 0.8-percent increase, or 281,000 new jobs created from January 2013 to 2014.
Monetary Board sees ‘firm’ economy amid buoyant demand Business World 12th Mar 2015
The Country's growth prospects remain strong amid healthy demand and supply conditions, monetary authorities noted in their first policy meeting for the year last month. According to the highlights of the Monetary Board’s Feb. 12 meeting that were released yesterday, expectations for domestic activity “continue to be firm” and positive growth dynamics should be supported by “buoyant private demand, sustained bank lending growth, and upbeat business sentiment.” On the demand side, sustained inflows of remittances and a low inflation environment translate to higher domestic demand. Robust bank lending, as well as improved government spending, should also underpin domestic economic activity, monetary officials noted.
BIR rolls out new tax registration form Business World 12th Mar 2015
In Revenue Memorandum Circular 9-2015, BIR said the new tax forms applicable to district offices that are covered by the rollout of the taxpayer registration systems are already available. Forms now available include the application for registration for self-employed, individuals earning purely compensation income, corporations and partnerships, one-time taxpayers, those who need to update their tax information and a certificate of update of exemption or information.
Efforts to decongest ports progressing – Palace Trade Union Congress of the Philippines 12th Mar 2015
Malacañang said yesterday efforts to decongest the ports were progressing and that importers and forwarders were now being urged to reduce trucking rates back to where they were prior to the congestion. On March 2, Cabinet Secretary Jose Rene Almendras announced that operations at the Port of Manila had completely normalized but some business groups expressed skepticism. The Semiconductor and Electronics Industries of the Philippines Inc. (Seipi), the Philippine Exporters Confederation Inc. (Philexport) and the European Chamber of Commerce of the Philippines Inc. (ECCP) expressed reservations as they pointed out that while there were improvements compared to the situation last year, it still remained to be seen whether this could be sustained at the start of the peak season in the second half of the year. –Aurea Calica (The Philippine Star)
DOF pushes immediate passage of tax incentives measure Philippine Star 12th Mar 2015
The Department of Finance is strongly urging Congress to immediately pass the Tax Incentives Management and Transparency Act (TIMTA) to bring Philippine fiscal policy into the 21st century and attract more companies to do business. “While tax incentives have long been used by governments worldwide as a fiscal policy lever to spur economic growth and investment, the Philippines stands as one of the few countries where tax expenditures arising from these tools are still kept in the dark,” the DOF said.
Energy
Solar Philippines breaks ground on 50-MW Batangas solar farm Business World Online 17th Mar 2015
Solar Philippines Commercial Rooftop Projects, Inc. has ventured into the development of large-scale solar facilities via a 50-megawatt (MW) farm which it is building in Batangas, the company said in a statement yesterday. The company -- which has been active in setting up solar-powered rooftops -- said it will invest around $100 million for the project, which will be the largest of its kind in Luzon. Solar Philippines yesterday held a groundbreaking ceremony for the project in Calatagan, adding to the energy mix of Batangas, which houses the largest number of plants utilizing conventional sources of energy. The planned solar farm, on a 75-hectare site, will utilize over 150,000 solar panels. “Once completed this year, it shall generate enough energy to power” most of the energy needs of Batangas, Solar Philippines said.
Congress on verge of giving up power measure Business World 16th Mar 2015
Both chambers of Congress are on the verge of giving up on passing a joint resolution that will allow the President to address an electricity shortage expected to take place from March to July in Luzon. This is because the island -- which contributes more than a third of the Philippines’ economic output -- can make do with existing measures to address the power supply gap, a senator said.
Financial Services
JFC backs relaxation of ownership rules for finance firms PhilStar 24th Mar 2015
Foreign business groups support a proposed measure seeking to relax ownership restrictions in laws for lending and financing companies as well as investment houses in the Foreign Investment Negative List (FINL), citing that such would facilitate the entry of more investments here. “The JFC (Joint Foreign Chambers) expresses support for House Bill (HB) 5544, removing or amending investment restrictions in specific laws governing adjustment companies, lending companies, financing companies and investment houses in the FINL filed by Deputy Speaker Giorgidi Aggabao,” the JFC said in a letter dated March 17 to Las Piñas City Representative Mark Villar who is also chairman of the House Committee on Trade and Industry.
Banks expand network reach The Philippine Star 24th Mar 2015
The number of banks dropped last year but the lenders’ operating network continued to expand during the period, Bangko Sentral ng Pilipinas data showed. The number of banking institutions went down to 648 last year from 673 in 2013, reflecting continued consolidation and the exit of weak players from the industry. However, the number of banking offices further increased to 9,713 last year from 9,262 in 2013, mainly due to the aggressive expansion of universal and commercial banks during the period. “The Philippine banking system remains sound and stable supported by a strong economic growth,” the BSP said in a report. “Banks’ balance sheets were marked by a sustained growth in assets and deposits. Asset quality indicators also continued to improve, while capital adequacy ratios remained above international standards, even with the implementation of the tighter Basel III framework,” the central bank said.
Purisima seeks uniform tax rate for financial instruments in SEAsia The Philippine Star 21st Mar 2015
Finance Secretary Cesar Purisima is seeking a uniform tax rate on financial instruments in Southeast Asia in preparation for the establishment of the Asean Economic Community by end-2015. Purisima, who will be attending the 19th Asean Finance Ministers’ Meeting in Kuala Lumpur today (Mar. 21), will make a pitch for a harmonized tax rate on any tradable asset that can be classified generally as equity-based or debt-based. Purisima also seeks to expedite negotiations on bilateral tax treaties to broaden the scope of integration. Member countries of the Association of Southeast Asian Nations (ASEAN) are moving towards an integrated economic region that will promote free movement of goods, services,investment and skilled labor as well as capital flows. For an economic community to fully reap the benefits of integration, it requires the harmonization of economic and business-related laws which include taxation.
BSP okays more applications for bank branches The Philippine Star 23rd Mar 2015
The Bangko Sentral ng Pilipinas approved more applications for bank branches in the fourth quarter on the back of lenders’ aggressive expansion in and out of the capital. In its Circular Letter 2015-016, the central bank said it approved 124 applications made up of regular branches, extension offices, micro-banking offices, and other banking offices. Banks with approved applications include China Banking Corp., East West Banking Corp., Land Bank of the Philippines, Metropolitan Bank and Trust Company, Rizal Commercial Banking Corp., and Robinsons Bank Corp. The lenders have six months to open these branches from the date of the approval. However, they may be given another six months to do so under certain circumstances. Last year, the BSP said local banks have been aggressively expanding their reach across the country due in part to the Association of Southeast Asian nations’ banking integration eyed before 2020.
Stocks seen hitting new record high this week The Philippine Star 23rd Mar 2015
The country’s benchmark stock index will be gunning for its 20th record close of the year this week. Analysts see another sideways trading over the next five sessions, albeit with upward bias that may propel the index to a new all-time high. “With the way the index is moving right now, it is likely to retain its sideways trend for the next one to two weeks at the least as technical readings have shown more neutrality than the previous weeks,” said Luis Limlingan, managing director at Regina Capital Development Corp. “Our projected trading range is 7,686 to 7,862,” Limlingan added. The Philippine Stock Exchange index (PSEi) recorded its last all-time record close at 7861.33 last March 6. Last week, the market drifted sideways but managed to finish in positive territory, avoiding what would have been its first back-to-back week-on-week decline for the year.
Total bank deposits up 5% to P6.7T The Philippine Star 23rd Mar 2015
Savings and time deposits continued to be the main sources of funds for banks in the fourth quarter despite moderate growth, the Bangko Sentral ng Pilipinas said. Total deposits went up five percent to P6.7 trillion in end-December from P6.4 trillion in the third quarter, central bank data showed. “The modest growth could be attributed in part to the increase in placements of trust entities in the BSP’s special deposit account facility relative to the previous year,” the central bank said. The central bank in early 2013 slashed the SDA interest rates by a total of 150 basis points and even ordered the removal of all singular investment management accounts from the facility by November last year. The BSP wanted to encourage funds to be channeled to activities that will benefit the economy instead of being parked in the SDA facility.
CCAP expects double-digit growth of credit-card holders in next few years Business Mirror 22nd Mar 2015
The Credit Card Association of the Philippines (CCAP), composed of the 14 largest banks in the country, has expressed confidence that the number of credit-card holders in the Philippines is expected to grow by double digits in the next few years. In a media discussion on Friday at a Makati City hotel, CCAP said 6.9 million credit cards have been issued to over 3 million card holders in the Philippines. It said it is ready to further penetrate the market in lowering the wage requirement to possess a credit card. “Younger working population means a more opportunity for us to give credit to the people who are entering the work force,” CCAP Chairman and Senior Vice President of Hongkong and Shanghai Banking Corp. (HSBC) Simon Calasanz said on positioning the local credit-card industry to young working individuals. Calasanz also said the penetration of the credit card is still low compared to the savings card.
2 gov't-owned banks to merge The Philippine Star 19th Mar 2015
A congressional panel in the House of Representatives today voted for the approval of the merger of two government-owned banks. Batangas Province Representative Nelson Collantes, chairman of the House committee on banks and financial intermediaries as well, said panel members had voted unanimously for the merger of the Development Bank of the Philippines and the Land Bank of the Philippines with the latter as the surviving entity. Collantes said the merger seeks to fuse the two banks financial capabilities, improve the delivery of services, and achieve economic efficiency. "The merger will improve the balance sheet capabilities of the merged bank, thus resulting in a stronger bank which will have a competitive edge over other banks both in the domestic and global markets," Collantes said.
Rural, thrift banks report decline in level of bad loans The Inquirer 17th Mar 2015
Bad loans held by countryside banks went down but remained elevated at the end of September last year, reflecting continuing efforts by small lenders to improve their books. Data from the Bangko Sentral ng Pilipinas (BSP) showed that the combined gross non-performing loans (NPLs) of rural and cooperative banks represented 12.24 percent of the banks’ total loan portfolio (TLP) of P134.61 billion as of the end of September last year. “The latest NPL figures indicate the banks’ continued efforts to adhere to sound credit risk management systems and to maintain high loan quality,” the BSP said in a statement. “These are essential to sustaining the viability of individual banks and to maintaining the overall stability of the domestic financial system,” it added. The third quarter figure improved from the 13.45 percent gross NPL ratio registered a quarter earlier as the amount of NPLs carried by small banks decreased amid a rise in their loan portfolio. Rural and thrift banks’ loan portfolio increased by 1.3 percent from the P132.89 billion posted in June 2014. NPLs are loans that have remained past due for at least 30 days.
Food & Agriculture
Zest-O to close deal for US factory this year Business World 19th Mar 2015
Zest-O Corp. said it could reach a deal for the acquisition of a production plant in the US this year, giving the homegrown beverage maker its first factory outside Asia. On the sidelines of the Philippine Chamber of Commerce and Industry (PCCI)-led business forum with the Italian trade delegation on Wednesday, Zest-O Chairman Alfredo M. Yao told reporters the company will put up a US subsidiary that will purchase an existing plant in Texas. The move will allow the company to produce Zesto juice drinks in the US, cutting transport and logistics costs in one of the juice maker’s export markets.
San Miguel Brewery cleared to go into non-alcoholic beverages Manila Standard Today 17th Mar 2015
San Miguel Brewery Inc., the beer unit of conglomerate San Miguel Corp., said it obtained the approval of the Securities and Exchange Commission to diversify into non-alcoholic beverages. SMB said in a disclosure posted on its Web site the SEC approved the amendments in the company’s articles of incorporation to include the non-alcoholic beverage business as part of the primary purposes. The new business includes manufacturing, importing, selling or dealing in water and water-based beverages and non-alcoholic beverages. The board of SMB in December approved the adoption of a multi-beverage strategy to capitalize on the opportunities in the rapidly growing non-alcoholic beverage industry. The beer company noted that the non-alcoholic beverage category had a larger share of the whole beverage industry and was growing at a faster pace than the alcohol sector.
Agri policy review to address farmer income, rice imports Business World 16th Mar 2015
The National Economic and Development Authority (NEDA) will revisit the government’s agriculture policy, particularly on rice, as it seeks to balance the need for higher farm incomes and stable food prices, Socioeconomic Planning Secretary Arsenio M. Balisacan said last week. Mr. Balisacan, at a media briefing, said the Economic and Development Cluster of the Cabinet has agreed to come up with a proposal for agriculture policy, particularly addressing rice imports and the quantitative restriction regime. “We need to revisit the whole paradigm of supporting agriculture if the intention is to expand the opportunities for our farmers,” Mr. Balisacan said.
Vietnam, Thailand tapped to supply rice Business World 18th Mar 2015
Neighbors Vietnam and Thailand have bagged contracts to supply a total of 500,000 metric tons (MT) of rice to boost the Philippines’ buffer stock in time for this year’s lean months, an official from the National Food Authority (NFA) said yesterday. “The NFA council approved the award in a special meeting last Tuesday. Notices of award were sent last Wednesday,” NFA Administrator Renan B. Dalisay said in a phone interview.
Processed food start-ups seek funding boost from USAID program Business World 18th Mar 2015
Crispina S. Wolfe, a 65-year old start-up entrepreneur from Barangay Mankilam in Tagum City, started planting 600 trees of chili (capsicum annum) in Laak, Compostela Valley three years ago and was on her way to building a profitable business until typhoon Pablo struck in December 2012 and destroyed her crop. But it did not take long for her to recover and restart her small processed chili business, as she tapped other farmers who now regularly supply her with raw chili at P150 per kilo. Ms. Wolfe's operation is capable of producing up to 1,000 kilos of powdered chili a day, sold under the Diablo de Davao brand, delivered mainly to the small neighborhood sari-sari stores, with consignments to a local shopping mall.
Philippines on El Niño alert as farm output goal at risk Business World 18th Mar 2015
The Philippines’ Department of Agriculture on Wednesday ordered its regional offices to intensify monitoring of drought incidence in farms nationwide after the weather bureau announced a mild El Niño was in progress. The Philippines is one of the world’s biggest rice importers and a frequent buyer of corn but is aiming for another record harvest of the grains this year in order to reduce purchases. “Since the last quarter of 2014, warm ocean conditions persisted, which shows that El Niño is in progress,” the weather bureau said in a statement.
Italian trade delegation eyes PHL farm modernization Business World 18th Mar 2015
Italian agricultural equipment makers are pushing to increase their exports to the Philippines, riding on the government’s plan to modernize the agriculture sector. Fabio Ricci, international markets manager of the Italian Agricultural Machinery Manufacturers Federation (FederUnacoma), said in an interview the group’s exports to the Philippines doubled last year from 2013 levels. He did not provide specific figures.
Banana-exporter Hijo Resources expands coconut sugar business Business World 18th Mar 2015
Hijo Resources Corporation (HRC), a major banana exporter, is slowly expanding its coconut sugar business with shipments to the United States, Australia and later this year to Japan. “HRC has always been known as one of the main players in the Davao Region’s banana industry, but our coconut sugar product is now slowly penetrating the foreign market,” said Corteza C. Moreno, HRC food technologist. HRC has been exporting coconut sugar to the US since August and to Australia since January last year.
DA signs abaca, rice production agreement with Germany’s GIZ Business World 18th Mar 2015
The Department of Agriculture (DA) has signed deals for two projects that will support abaca and rice farmers in selected parts of the country. The agency said it concluded memoranda of agreement with Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) -- representing the German Federal Ministry for Economic Cooperation and Development (BMZ) -- and other partners. The Abaca Sustainability Initiative and Better Rice Initiative Asia-Fostering Agriculture and Rice Marketing by Improved Education and Rural Advisory Services (BRIA-FARMERS) will “ensure sustainability of the government’s current programs on improving abaca and rice production.”
Agricultural equipment maker Yanmar in tie-up with distributor Ropali Business World 18th Mar 2015
Yanmar Co. Ltd., a maker of agricultural equipment, has embarked on a partnership with the Ropali Corp. in the Philippines as part of the Japanese firm’s plan to grow its footprint in Southeast Asia. In a briefing on Tuesday, Yanmar Philippines Corp. (YPC) President Hideaki Ikezawa said the joint venture, with a capital of P120 million, is targeting P2.5 billion in sales by 2018. The projected sales will give YPC a market share of 30-40%. Yanmar owns 60% and Ropali owns 40% of YPC.
Health & Life Sciences
FDA warns vs 20 unregistered drugs Philippine Daily Inquirer 23rd Mar 2015
The Philippine's Food and Drug Administration (FDA) has ordered the seizure of 20 drugs being sold in the market which did not undergo government evaluation and registration to guarantee their safety and efficacy. In a recent advisory, the FDA ordered all its field food and drug regulation officers to confiscate the unregistered drug products—mostly antibiotics and antihistamines—from stores and drug establishments.
Debate persists on pneumonia vaccine in the Philippines SciDev Net 23rd Mar 2015
A controversial government scheme involving the purchase of pneumococcal conjugate vaccine (PCV) in the Philippines brings to focus on possible influences of drug firms on the country’s health programs and the need for transparency in decisions to gain public trust and support. The Department of Health’s controversial purchase in 2012 of the allegedly cheaper PCV 10 worth 833 million pesos (about US$18.54 million) prodded investigation of the contract as well as the resignation of health secretary Enrique Ona and the demotion of Eric Tayag from assistant secretary to director in late 2014.
PH winning battle against TB; will meet MDG target - DOH InterAksyon 23rd Mar 2015
Philippine authorities may be relentlessly warning of the risk of runaway tuberculosis (TB) incidence, especially of the drug-resistant kind, but in truth, said the Health department, the country is now winning the battle against the scourge, which was ranked sixth killer disease here in 2009. According to Health Secretary Janette Garin, the country is set to achieve the 2015 Millennium Development Goal (MDG) in fighting the disease. Philippines is one of the seven in the list of the 22 high-burdened countries for TB that had already met the MDG goal on TB as early as 2012.
Garin appointed health secretary Inquirer 13th Mar 2015
President Aquino has finally appointed Janette Garin as health secretary, after a nearly four-month wait for the former Iloilo district representative. Garin has been acting health secretary since November last year to replace Enrique Ona, who found himself embroiled in several issues in the Department of Health.
'Tsekap': Philhealth has new benefits for indigents Rappler 13th Mar 2015
The Philippine Health Insurance Corporation (PhilHealth) expanded its primary care package to benefit more than 15 million indigents and sponsored members. The expanded package called Tamang Serbisyo sa Kalusugan ng Pamilya or Tsekap will be available in identified government and private health care facilities that will serve the following PhilHealth members: Indigent - as identified by the Department of Social Welfare and Development (DSWD), these are people who have "no visible means of income," or whose income is not enough to sustain his/her family; Sponsored - persons whose contributions are being paid for by government agencies, private entities, or another individual.
ICT
Smart, Facebook offer free Internet PhilStar 23rd Mar 2015
Subscribers of Talk ‘N Text, Smart, and Sun Cellular can now access a suite of mobile Internet services for free through Facebook’s Internet.org app, which made its Southeast Asian debut in the Philippines last Wednesday. Subscribers with a data-capable device can access Facebook, Facebook Messenger plus 22 other websites — providing news, health, weather, and other services – by downloading the Internet.org application on Google Play or visiting www.Internet.org on their mobile browser. They can get more information by texting INTERNET to 9999.
PHL infrastructure still cloud’s biggest hurdle Business World 17th Mar 2015
“[The Philippines] is not a mature market yet because of the existing challenges in [cloud computing-related] infrastructure,” Helen Masters, Infor ASEAN vice-president, said at the Infor Industry forum held last week. Infrastructure challenges remain to be the biggest hurdle to widening the scope of cloud computing in the country, according to enterprise software and cloud company Infor. Limited IT infrastructure such as data centers and affordable broadband networks have long been tagged as obstacles to harnessing cloud computing. The United Nations Conference on Trade and Development (UNCTAD) said in its 2013 report that while cloud computing will become one of the most significant disruptive technologies over the next two decades, developing countries may fall behind in the cloud race if the necessary infrastructures are not in place.
Business groups renew call to create separate ICT department Manila Standard Today 16th Mar 2015
Philippine and foreign business groups reiterated their call for the passage of the bill creating the Information and Communications Technology Department. The groups supporting the bill include the Joint Foreign Chambers, Makati Business Club, Management Association of the Philippines, the Philippine Chamber of Commerce and Industry, Philippine Association of Multinational Companies Regional Headquarters Inc. and IT and Business Process Association of the Philippines Business. Local and foreign business groups backed the proposed legislation in the last three sessions of the Congress, saying they were strongly convinced that the time was overdue to create an information and communications department in the Philippines.
Infrastructure
San Miguel Corp. forays into airports CNN 24th Mar 2015
Diversified conglomerate San Miguel Corp. is adding airports outside Metro Manila to its menu of big-ticket infrastructure projects. The projects are in line with the so-called “pocket open skies” policy of the Aquino administration to encourage traffic in airports other than the main gateway, Ninoy Aquino International Airport (NAIA). In a disclosure to the Philippine Stock Exchange, the food-to-infrastructure group says it would bid for several regional airports under the flagship Public-Private Partnership program.
Chiyoda, Mitsubishi Corp to build new Bohol airport Manila Bulletin 20th Mar 2015
The Department of Transportation and Communications has awarded the contract to build a new airport in Bohol, which is a popular tourist destination, to Japanese engineering giant Chiyoda and Mitsubishi Corp. “We awarded (the Bohol airport contract) to Chiyoda-Mitsubishi. This is an ODA (official development assistance) loan and JICA (Japan International Cooperation Agency) rules of procurement. Every step of procurement process required JICA concurrence,” DOTC secretary Jun Abaya said. The project involves the operation and maintenance of the P2.34 billion new Bohol airport that will replace the existing Tagbilaran Airport. It will be operated under a public-private partnership. Chiyoda and Mitsubishi will undertake the operation and maintenance of the airport and provide additional facilities and other necessary improvements.
No letup in Metro Manila’s record building boom triggers glut concern Business World 16th Mar 2015
The capital region, Metro Manila, is in the grip of a building boom -- led by developers such as Megaworld Corp. and Ayala Land Inc. -- that will add a record number of apartments over the next two years. It also threatens to lead to a glut that will weigh on returns for investors. An estimated 55,000 residential units will come onto the market in Metro Manila this year, slowing growth in lease rates, according to broker CBRE Group Inc. Spending by property companies will rise 18% to more than P300 billion ($6.8 billion) in 2015 from last year, according to broker Savills Plc.
DOTC sets bid for P128-B provincial airports Philippine Stat 12th Mar 2015
The government has finalized the timetable for the bidding of the operation and maintenance (O&M) of six provincial airports worth P128 billion under the public private partnership (PPP) program. However, the P10.3 billion Puerto Princesa airport project was removed from the two packages under the Instruction to Prospective Bidders (ITPB) published by the Department of Transportation and Communications (DOTC) and the Civil Aviation Authority of the Philippines (CAAP). DOTC Undersecretary Jose Perpetuo Lotilla issued General Bid Bulletin 03 —2015 stating that the inclusion of the Puerto Princesa airport in the bidding projects has been put on hold until further notice.
Regional PPP deals luring big investors Business World 20th Mar 2015
Deals for public-private partnership (PPP) projects in the provinces -- one that will build a modern prison and another that will develop strategically located small regional airports -- have attracted big prospective investors, officials said at a conference in Pasay City on Friday.
MPIC eyes airport projects PhilStar 19th Mar 2015
Infrastructure giant Metro Pacific Investments Corp. (MPIC) has expressed interest in the government’s airport project, by purchasing bid documents. MPIC chairman Manuel V. Pangilinan told reporters yesterday the group bought bid documents for the airport projects, but noted that the firm would still need to study which package would be attractive. “We are in the process of assessing which package we would be more interested in,” he said. The government is set to offer for bidding the operation and maintenance (O&M) of six provincial airports worth P128 billion under the Public Private Partnership (PPP) program.
Builders see more foreign PPP participants if reforms pass Business World 16th Mar 2015
The passage of a law enabling more public-private partnership (PPP) deals is expected to bring in more foreign investors, a construction industry official said, as it would address private developers’ concerns in partnering with the Philippine government. As things stand, foreign investors view the government’s ability to deliver on project terms as the biggest uncertainty in major Philippine infrastructure deals, said Manolito P. Madrasto, executive director of the Philippine Constructors Association, Inc.
3 groups qualify for Lakeshore deal auction Business Mirror 16th Mar 2015
Three groups have so far passed the prequalification stage of the auction for the P122.8-billion Laguna Lakeshore Expressway Dike contract, a senior government official said over the weekend. Public Works Undersecretary Rafael C. Yabut said the three groups that prequalified were Trident Infrastructure and Development Corp. or Team Trident, composed of Ayala Corp., Aboitiz Equity Ventures Inc., SM Prime Holdings Inc. and Megaworld Corp.; Alloy-Pavi Hanshin LLEDP Consortium of Alloy MTD Capital Bhd., Prime Asset Ventures Inc. and Hanshin Engineering Constructions; and San Miguel Holdings Corp. Rainbow Consortium—composed of Rainbow Holdings Inc., PT Nusa Konstruksi Enjiniring Tbk., The No. 4 Metalurgical Co. of China Ltd. and Shindong-Ah Construction Co. Ltd.—was “initially disqualified” from the prequalification stage, Yabut said.
Gov’t finalizes airport PPP packages Business World 12th Mar 2015
The government has finalized grouping of P108.9 billion worth of deals to develop, operate and maintain (O&M) five regional airports under the public-private partnership (PPP) scheme, as well as bidder requirements and a timetable that culminates with contract award by March next year and signing of concession agreements the following month, according to March 10 instructions to prospective bidders (ITPB) uploaded on the PPP Center’s Web site. That will make it one of the last few PPP projects expected to be awarded under the current administration, whose term ends on June 30 next year. The ITPB left out the P5.81-billion Puerto Princesa O&M and Development Project, which initially formed part of the airport PPP package in an invitation to pre-qualify and bid published in December last year by the Department of Transportation and Communications (DoTC) and Civil Aviation Authority of the Philippines. Sought for an explanation, DoTC Spokesperson Michael Arthur C. Sagcal said in a phone interview that his department “now finds it feasible to bid out Puerto Princesa’s O&M separately from the other five airports because of the tourism development in that area.” “The P5.81-billion project will possibly be bundled together into a comprehensive tourism airport-centric strategy for Palawan airports, such as San Vicente, which will be completed in around three months, and also Busuanga,” Mr. Sagcal explained.
Gov’t invites investors to join upcoming PPP events Public-Private Partnership Center 24th Mar 2015
The goverment is set to hold a pre-bid conference and investors’ forum for public-private partnership (PPP) projects this week. The Department of Justice (DOJ), Bureau of Corrections (BuCor), and PPP Center are inviting business groups to join the investors’ forum on Friday, March 20, for the Regional Prison Facilities through PPP Project. The forum will be held at the Philippine International Convention Center in Pasay City. The Php 50.18 billion prison facilities project is the first of its kind in the country. The project will entail the construction and maintenance of a modern prison facility in Fort Magsaysay, Nueva Ecija.
One Stubborn Problem The Rising Star Philippine Economy Can't Yet Fix Forbes 17th Mar 2015
Looking out from an office tower in Makati, Manila’s financial center and most ostentatious concentration of wealth, you easily believe that the Philippine economy is growing by at least 6% per year, interest rates are up since 2012 and stocks have gained every year post 2009. However, A stubbornly unwavering quarter of the 99 million Filipinos live in poverty, meaning less than $5,000 a year in family income. Let’s break those reasons down. Philippine land reform in place since 1988 is doing little to redistribute the turf. The government remains corrupt despite widely cited improvement since 2010 and unable to collect taxes, analysts say. It’s left with inadequate funds for new infrastructure that would invite more foreign-invested manufacturing, a potentially rich source of employment. As a result, the country’s top businesses such as San Miguel and the Ayala Corp. develop condo towers or shopping centers rather than ports, railways or roads. Back-office outsourcing such as call centers and remittances from some 2 million overseas explain today’s GDP growth but don’t reshape the Philippines in ways that would raise living standards.
For investors, Southeast Asia touts alternatives to China's workshop Christian Science Monitor 17th Mar 2015
The Philippines, Vietnam, and Indonesia are building infrastructure and dangling tax breaks for foreign investors at a time when the cost of doing business in China is rising. The Philippines is starting to divert foreign investors like Seiko Epson away from China, where they have long had a presence. The government has earmarked 5 percent of GDP next year for roads, ports, and commuter rail. In Manila, a nearly mile-long elevated expressway is now under construction that will funnel cars from its international airport over jammed surface roads and grey crumbling buildings to a toll highway. The road zips south to industrial sites in Batangas province, two hours away. Indonesia is trying to overcome congestion on roads and in seaports while expanding access to power and drinking water. Companies from Japan, Taiwan, and the United States have also been expanding in Southeast Asia over the past five years, giving the region what officials say is added economic clout as an alternative to China.
Philippines offers private firms $1.1 bln tender to build, maintain jail Reuters 16th Mar 2015
Philippine contractor Megawide Construction Corp said it was interested in taking part in a $1.1 billion government tender to build and maintain a prison north of the capital. The tender, launched earlier this month, is part of the government's efforts to fix a dilapidated prison system that is the fourth most overcrowded in the world, according to the International Centre for Prison Studies (ICPS). It is also one of several private-public partnership (PPP) projects launched by the government to improve infrastructure in Southeast Asia's fifth largest economy. Megawide, which has so far bagged a third of all PPP projects awarded so far, said investing in prisons was profitable, citing privately maintained jail facilities in Australia, Brazil, and United States.
Philippines mimicking Thailand to build auto industry Bangkok Post 12th Mar 2015
The Philippines will offer tax breaks to as many as three automakers as one of Asia’s fastest-growing economies aims to become a regional production hub. President Benigno Aquino is set to issue an order implementing the Comprehensive Automotive Resurgence Strategy programme, or CARS, "within this year," Trade Secretary Gregory Domingo said in an interview in his office in Manila Tuesday. The Philippines is seeking to replicate Thailand's success in building its auto industry, betting that a young workforce and its biggest economic boom since the 1950s will lure companies such as Volkswagen AG. Mr Aquino, who steps down in June 2016, is increasing spending on roads and airports to a record this year to lure more foreign direct investment and bolster growth to as much as 8% this year and next.
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