| Regional Affairs
Philippines seeks US help in South China Sea dispute AsiaOne 27th Aug 2015
The Philippines has sought help from the United States to monitor "real-time" developments in the South China Sea, providing surveillance and reconnaissance, a military spokesman said on Thursday, amid China's rapid expansion in the area. Colonel Restituto Padilla said the defence ministry had asked US Pacific Command chief, Admiral Harry Harris, to provide air cover to a Philippine civilian ship that regularly delivers supplies to Second Thomas Shoal in the disputed waters. "We want the US military to watch over our ships, which China attempts to block every time we rotate troops and bring supplies to a ship that ran aground on Ayungin shoal," Padilla said.
National Affairs
Calls for Cabinet men seeking election to quit mount Manila Standard Today 27th Aug 2015
Calls for the resignation of a growing list of Cabinet members mounted Wednesday amid accusations that some officials were using public funds to bankroll their election campaigns while others were simply deemed incapable of doing their jobs. The leftist Bagong Alyansang Makabayan on Wednesday dared Cabinet and appointed officials led by Interior Secretary Manuel Roxas II to resign irrevocably for early campaigning using millions of pesos of taxpayers’ money. Aside from Roxas, the standard bearer of the ruling Liberal Party in the 2016 presidential elections, Bayan secretary-general Renato Reyes Jr. issued the challenge to PhilHealth director Risa Hontiveros, Justice Secretary Leila de Lima and Metro Manila Development Authority chairman Francis Tolentino, all of whom were in a Cebu sortie with President Benigno Aquino III and ranking leaders of the Liberals.
NPC will go Poe to get top role Manila Standard Today 20th Aug 2015
A senior member of the Nationalist People’s Coalition (NPC) said Wednesday the party will “very likely” throw its support behind Senator Grace Poe because it would no longer be a “second-class citizen” in an alliance with other political parties. “Because Grace is an independent candidate, it’s very inviting for the NPC to support her because we will be the lead political party,” said Senator Vicente Sotto. “You must remember that other members think that if we support the candidate of another political party, we might become second-class citizens to the [United Nationalist Alliance] or any other political party,” he added.
Irregularities claimed in Makati senior citizens program Business World 20th Aug 2015
A MAKATI OFFICIAL has bared alleged irregularities in a city program that provides free groceries -- including free medicine and movies -- to senior citizens during a hearing of the Senate blue ribbon subcommittee on Thursday. Based on an initial audit of two barangays -- Kasilawan and Pinagkaisahan -- Makati City is projected to lose P367.5 million a year due to ghost senior citizens or beneficiaries who do not exist, Arthur S. Cruto, the head of the Makati City Action Center told the Senate blue ribbon subcommittee on Thursday.
Foreign businessmen push reforms to National Apprenticeship Program The Philippine Star 17th Aug 2015
Foreign business groups in the Philippines are pushing for the immediate approval of a proposed measure in the Senate which could help address the country’s soaring unemployment problems. In a statement over weekend, the Joint Foreign Chambers (JFC) renewed its call for the passage of Senate Bill 136 which aims to reform the country’s National Apprenticeship Program. JFC has been pushing for the measure since last year. “With just a few remaining months of the 16th Congress, this bill deserves urgent consideration in view of the extremely high unemployment rates among young Filipinos,” the JFC said.
Customs
After being slammed for anti-OFW policy, Lina loses bid to scrap BOC’s P650-million computerization deal Business Mirror 25th Aug 2015
The Regional Trial Court in Manila City stopped Customs Commissioner Alberto D. Lina on Tuesday from canceling the award of the P650-million contract to the joint venture of Omniprime Marketing Inc. and Intrasoft International Inc. for a modern integrated enhanced customs-processing system (IECPS). In an 18-page Omnibus Order, Manila RTC Branch 47 Presiding Judge Paulino Gallegos issued a writ of preliminary injunction enjoining respondents Lina and lawyer Jose Tomas Syquia, head of the the Department of Budget and Management (DBM) Procurement Service, from implementing the Bureau of Customs’s (BOC’s) May 6, 2015, letter of Lina aborting the competitive bidding for the computerization program and the May 7, 2015, cancellation issued by Syquia. The trial court also directed the BOC and the DBM to continue with the remaining procurement process of signing the contract and to issue to Omniprime the notice to proceed with the project.
BIR, Customs set up electronic file exchange for importers The Philippine Star 20th Aug 2015
Importers are expected to save on the cost of processing their requirements after the tax and customs bureaus signed an agreement for an electronic data exchange. In a statement, the Bureau of Customs (BOC) said the memorandum of agreement with the Bureau of Internal Revenue (BIR) will create an online facility wherein tax identification numbers and other relevant information on importers will be stored. This will phase out the use of the Import Entry and Internal Revenue Declaration (IEIRD or BC Form 236) forms which importers pay for as part of the requirements for processing their shipments. Under the agreement signed earlier this month, the BIR will be required to provide the online database for TINs and other information on importers and exporters.
Congress studying exemption from salary rules for Customs Business World 19th Aug 2015
Ways and Means Committee Chairman Senator Juan Edgardo M. Angara said on Wednesday that he is looking into the possible exemption of Bureau of Customs (BoC) officials from the Salary Standardization Law (SSL) as one of the reforms in the proposed Customs Modernization and Tariff Act (CMTA). “By exempting the BoC from the government’s salary cap, we could provide better pay for our Customs officials that would allow us to hire more competent employees and reward honest officials. But before we make any increase in their pay scale, there should be improved qualification and performance benchmarks in place to further professionalize its ranks,” Mr. Angara said in a statement.
Philippine ports ready for rising volumes after cabotage law change The Journal of Commerce 18th Aug 2015
Smaller ports in the Philippines are bracing for rising container throughput following government approval of an act that liberalizes the country’s cabotage law and allows foreign carriers to participate in the domestic transport of cargo. President Benigno Aquino recently signed the landmark Philippine Competition Act and the Foreign Ships Co-Loading Act, which amends the 50-year-old cabotage law. Once gazetted the law will take effect within 15 days. The amendments to the law will lower shipping costs for export and import shipments by allowing foreign-flagged vessels to carry imported cargo directly to the final Philippine port of destination, according to a statement by Aquino.
Defense & Security
50,629 assault rifles defective — military Manila Standard Today 27th Aug 2015
The Armed Forces of the Philippines has 50,629 pieces of M4 assault rifles in its arsenal but these are defective and could not be used by government soldiers, a military spokesman said on Tuesday. The rifles valued at P1.9 billion were supplied by the United States-based Remington Outdoor Company but the company still has to replace the defective weapons, according to Col. Noel Detoyato, AFP public affairs chief. In August last year, the military handed 27,000 pieces of M-4 rifles to the Philippine Army and Marines in ceremonies attended by President Benigno S. Aquino III at Camp Aguinaldo. After a technical inspection, the military’s acceptance committee rejected the rifles due to defective sights and barrel grooves, Detoyato said. He did not say when Remington would replace the rifles.
Philippine military gets 2 ships, 10 helicopters with more on the way Stars and Stripes 25th Aug 2015
The Philippine military has gotten a boost with the delivery of two transport ships donated by Australia and a fleet of combat utility helicopters acquired with help from the U.S. and Canada. The equipment will help the island nation respond to natural disasters such as Typhoon Haiyan, which killed more than 6,000 people in 2013, but it’s also part of an effort to stand up to China, which has been flexing its muscles in sea territory claimed by the Philippines. The dispute centers on the Spratly Islands, a collection of islets and reefs largely within the Philippines’ exclusive economic zone, where China has been building artificial reefs, runway strips and other fortifications.
Palawan, Subic bases eyed for new fighter jets The Philippine Star 20th Aug 2015
The Philippines is eyeing the construction of military facilities in Subic and Palawan as it awaits the arrival of 12 lead-in fighter trainer jets acquired from South Korea. Documents obtained by The STAR showed that the government is spending P135.99 million for the basing support system for the 12 FA-50 jets. The jets were acquired from state-run Korea Aerospace Industries Ltd. (KAI) at P18.9 billion, making them the biggest item in the military’s upgrade program. Two of the jets may be delivered by yearend. The Department of National Defense confirmed the project but maintained that it is not directed against any country.
Officials: Philippines Can't Afford Full Military Modernization DefenseNews 18th Aug 2015
The Philippines can only afford a "frugal" military upgrade, defense officials said Monday, even though maritime tensions with China are growing. Despite a proposed 25 percent rise in next year's defense budget, the government must still divide resources between external defense and internal threats like insurgencies and natural disasters, Defense Secretary Voltaire Gazmin and other security officials added. Since President Benigno Aquino took office in mid-2010, the Philippines has acquired two former US Coast Guard cutters, three landing craft from Australia and South Korea and seven surplus UH-1H helicopters.
Washington renews pledge to assist Manila in ongoing AFP modernization Business Mirror 17th Aug 2015
The United States has vowed to assist the Philippine military in its ongoing modernization program, even as it reiterated its call for China to use the “peaceful path” in resolving its territorial dispute with the Philippines. US Ambassador Philip Goldberg made this statement during sidelights of the turnover ceremonies of eight brand-new Bell-412EPs combat utility helicopters and two attack versions of the AgustaWestland AW-109Es on Monday at the Villamor Air Base in Pasay City. The contract for eight units of Bell-412EP combat utility helicopters, acquired from Canadian-American company Bell Helicopter Textron, was worth P4.8 billion and signed in March 2014.
Economics
BSP firms up grip on rates amid external shocks The Philippine Star 27th Aug 2015
The Bangko Sentral ng Pilipinas (BSP) sees no need to adjust monetary policy at this point despite external shocks including the stock market rout early this week, the global economic slowdown, and the impending rate increase by the US Federal Reserve. BSP Governor Amando Tetangco Jr. said the county’s monetary policy stance remains appropriate amid the volatility in the global stock and foreign exchange markets. “Given the lag of monetary policy, we may not need to adjust settings as yet, unless, oil falls significantly more from where we are now (or reverses trend); or El Niño intensifies and becomes extended; or global growth slows significantly or deviates from trend; or financial stability risks become heightened because of uncertainties from market views on US Fed actions,” Tetangco said.
Q1 growth revised lower to 5% Manila Standard Today 26th Aug 2015
Government statisticians on Wednesday revised downward the first-quarter gross domestic product growth to 5 percent from the previous estimate of 5.2 percent, a day before the release of second-quarter figures today. The Philippine Statistics Authority revised the first-quarter GDP growth after incorporating more data into the national accounts. It said the 0.2-percentage-point reduction in the GDP figure was caused by lower growth estimates for public administration and defense; mining and quarrying; and agriculture, hunting, forestry, and fishing. The first-quarter expansion of 5 percent was slower than the 5.6-percent growth a year ago and was below the government’s full-year target of 6.5 percent to 7.5 percent. It was also the weakest growth in three years.
Philippine economy picks up speed in second quarter, says IMF The Philippine Star 24th Aug 2015
The International Monetary Fund (IMF) said the Philippine economy likely picked up speed in the second quarter of the year after slowing down in the first quarter on weak global demand and lack of government spending. IMF resident representative Shanaka Jayanath Peiris said the country’s gross domestic product (GDP) grew slightly faster in the second quarter due to improved spending by the Aquino administration. “We would expect the economy to have picked up slightly in the second quarter from the first quarter level on improving government spending disbursements and bottoming out of the export decline, although manufacturing activity remained weak and may have dragged down growth,” Peiris said.
IMF urges Manila to shun tax perks threatening fiscal gains Business Mirror 24th Aug 2015
The Philippines must end unnecessary perks for industries so it can cut among the highest income taxes in the region without eroding the fiscal gains the economy has achieved, the International Monetary Fund’s (IMF) representative said. Removing incentives for property developers, power-plant operators and miners will help plug a revenue shortfall that’s hampering the government’s ability to improve collection, IMF Philippine Representative Jay Peiris said in an August 20 interview in Manila. The country must limit benefits only to industries that really need it, like manufacturing, he said.
Renewed US GSP program seen boosting Philippine exports The Philippine Star 24th Aug 2015
The Philippines expects its exports and competitiveness to the US market to receive a boost from a renewed US Generalized System of Preferences (GSP) program. GSP-eligible exports comprised only 20.37 percent of Philippine total exports to the US in 2012, from previous year’s 16.59 percent. Roseni Alvero, Department of Trade and Industry (DTI) senior trade specialist and Philippine embassy commercial counselor, said most of the products belonging to the top 50 US GSP-eligible exports across the years are imported by big US multinational likely from big manufacturing operations.
How the Philippines Missed Out on Commodities Prosperity The Wall Street Journal 19th Aug 2015
Resources giant Glencore PLC’s decision to quit the Philippines has deepened the sense of gloom in the country’s mining sector, which company executives claim is being throttled by government regulation. While other resource-rich countries incentivized mining during the global commodities boom, the Philippines did the opposite, according to mining executives, by imposing a freeze on new mining permits and threatening to hike mining taxes. That means the Philippines missed out on billions in potential mining revenues and foreign investment, they said, and may have to wait years before getting another chance to cash in, thanks to slumping commodity prices now. The Philippines was the world’s top nickel producer last year, contributing nearly a fifth of global supply.
Remittances increased 6.1% to $2.2b in June — Bangko Sentral Manila Standard Today 17th Aug 2015
Money sent home by Filipinos working overseas climbed 6.1 percent in June to $2.18 billion from $2.05 billion a year ago, exceeding Bangko Sentral’s growth target of 5 percent for the year. This brought total cash remittances in the first half to $12.1 billion, up 5.6 percent from $11.4 billion registered in the same six-month period in 2014, data showed. “In particular, cash remittances from land-based [$9.2 billion] and sea-based [$2.8 billion] workers grew by 6.2 percent and 3.7 percent, respectively,” Bangko Sentral said. Top sources of cash remittances were the United States, Saudi Arabia, the United Arab Emirates, the United Kingdom, Singapore, Japan, Hong Kong and Canada,” Bangko Sentral said.
Energy
House bill regulating LPG industry OK’d Business Mirror 27th Aug 2015
A measure establishing a regulatory framework for the safe operation of players in the liquefied petroleum gas (LPG) industry has been approved recently at the House of Representatives. House Bill 5617, or the LPG Industry Regulation and Safety Act, principally authored by Nationalist People’s Coalition Rep. Susan Yap of Tarlac and Party-list Rep. Arnel U. Ty of LPGMA, sets standards of conduct and codes of practice for the LPG industry. Under the measure, a regulatory framework for the importation, refining, refilling, transportation, distribution and marketing of LPG, and the manufacture, requalification, exchange and swapping or improvement of LPG cylinders shall be established.
Semirara unit, Meralco forge two-year power supply deal The Philippine Star 26th Aug 2015
Southwest Luzon Power Generation Corp., a unit of Semirara Mining and Power Corp., has forged a two-year power supply deal with Manila Electric Co. (Meralco), the country’s biggest power distributor. In a disclosure to the Philippine Stock Exchange, Semirara said its subsidiary will supply Meralco 120 megawatts (MW) of power starting March 26, 2016. “We disclose that the company’s wholly-owned subsidiary, Southwest Luzon Power Generation Corp. and Manila Electric Co. local retail electricity supplier (RES) segment have signed a power supply agreement (PSA) with a term until Dec. 25, 2018,” the company said.
Aklan wind farm okayed Manila Standard Today 26th Aug 2015
The Energy Regulatory Commission approved a certificate of compliance for the 36-megawatt Nabas Phase-1 wind power project in Aklan province that will pave the way for its eligibility under the feed-in-tariff scheme. The 36-MW Nabas facility is owned and operated by PetroWind Energy Inc. which invested P4.5 billion to develop the project. It will become the single biggest investment in Aklan province and the largest renewable energy project to date in Panay island. PetroWind is a joint-venture company owned by Singapore-based CapAsia Asean Wind Holdings Cooperatief U.A. (40 percent), EEI Power Corp. (20 percent) and PetroGreen Energy Corp. (40 percent).
Enfinity unit adding 100 MW solar capacity The Philippine Star 24th Aug 2015
The local unit of Belgium-based solar developer Enfinity N.V. is planning to put up additional 100 megawatts (MW) in three of its planned seven solar power plants in the country, but the expansion of these projects will not be pursued under the feed-in tariff (FIT) scheme. Enfinity Philippines Renewable Sour-ces Inc. has secured seven sites for solar projects, four of which are being constructed, its president Dennis C. Ibarra said in an interview. The four solar plants are located in Concepcion, Tarlac; Clark, Pampanga; in San Roque, Digos, Davao; and in Cavite. These four plants are scheduled for completion by year-end with a total capacity of 100 MW.
NEA fasttracking rural electrification The Philippine Star 24th Aug 2015
The National Electrification Administration (NEA) is targeting to complete the Sitio Electrification Program (SEP) six-months ahead of schedule to avoid coinciding with the national elections in May 2016. NEA, a government owned-and-controlled corporation, is tasked to carry out electrification on an area coverage basis, through the electric cooperatives. The state-owned agency committed to electrify 32,441 sitios until the end of President Aquino’s term in June 2016.
Aboitiz awards P3.5-b solar contract Manila Standard Today 19th Aug 2015
Aboitiz Power Corp. and US-based renewable energy company SunEdison awarded the engineering, procurement and construction contract for the 59-megawatt solar power project in Negros Occidental to Nani Group Corp. Nari Group will undertake the construction of the P3.5-billion Negros Solar Energy Project near near San Carlos City. Nani Group, which has completed more than 30 projects in the Philippines, is the largest supplier of electric equipment in China. The joint venture project is set for commercial operations in the first quarter of 2016, becoming one of the largest solar power projects in the Philippines.
Natural gas-powered plants could be permitted to use diesel fuel during periods of tight supply Business World 19th Aug 2015
Power plants fueled by natural gas may soon be allowed to run on diesel during periods when electricity is in short supply. A measure that would formally exempt natural gas-fired plants from the Biofuels Act has been approved at the committee level at the House of Representatives, with the goal of averting future supply crises when large plants are down for maintenance. “This is the proposal of Senator Sergio R. Osmeña III to exempt natural gas plants which we adopted here and approved,” Oriental Mindoro Rep. Reynaldo V. Umali (2nd district), chairman of the House committee on energy, told reporters on Tuesday.
Semirara coal plant adds 300MW to grid Business World 18th Aug 2015
Simirara Mining and Power Corp. said its Calaca coal plant will supply an additional 300 megawatts to the electricity grid starting next month. Semirara, the country’s biggest coal miner, had been boosting its power capacity which is its “main growth driver,” it said in its quarterly report filed with regulators, softening the impact of a suspension order against its coal operations at its Panian mine. The company, through wholly-owned subsidiary SEM-Calaca Power Corp., owns and operates a 600-MW coal plant in the municipality of Calaca. Through another subsidiary, Southwest Luzon Power Generation Corp. (SLPGC), the listed parent had expanded that Calaca coal plant to 900 MW through two 150-MW units.
Financial Services
Philippines ranks 15th in global survey on financial inclusion The Philippine Star 26th Aug 2015
Washington-based think tank Center for Technology Innovation (CTI) has ranked the Philippines 15th out of 21 countries in terms of access and usage of affordable financial services. The Philippines earned 68 percent of the total possible points based on the 2015 Brookings Financial and Digital Inclusion Project (FIDP) Report prepared by John Villasenor, Darrell West, and Robin Lewis. The FIDP report is the first of a series of annual reports examining financial inclusion activities around the world. It ranked the 21 countries which have committed to improving financial access and usage using 33 indicators spanning four dimensions: country commitment, mobile capacity, regulatory environment and adoption.
SEC to PSE: Explain shutdown of trading on the exchange Business World 26th Aug 2015
The Securities and Exchange Commission (SEC) has asked the Philippine Stock Exchange (PSE) to explain why all floor trading had been halted three times this month, with Tuesday’s outage being the biggest to hit the exchange in its entire history. “We have ordered the PSE to submit not later than Friday, Aug. 28, 2015, a full and thorough report on these glitches and trading halts,” SEC Chairperson Teresita J. Herbosa said in a statement released yesterday, a day after the exchange said a technical glitch forced it to stop trading for nearly five hours. Tuesday’s five-hour trading lull -- from 10:02 a.m. to 2:55 p.m. -- was “unprecedented”, PSE President Hans B. Sicat had said.
House approves amendments to PDIC charter Business World 26th Aug 2015
The House of Representatives has approved a measure amending the Philippine Deposit Insurance Corp. (PDIC) charter to provide more protection to depositors. The chamber approved House Bill 6020 on second reading late Tuesday. The substitute bill consolidates four proposals filed by lawmakers before the House committee on banks and financial intermediaries. “It is hereby declared the policy of the state to strengthen the mandatory deposit insurance coverage system to generate, preserve, maintain faith and confidence in the country’s banking system, and protect it from illegal schemes and machinations,” the bill read. Republic Act 3591 or the PDIC charter was last amended in 2009.
Market slump to postpone IPO plans Manila Standard Today 25th Aug 2015
The current slump in global equities will likely discourage companies from conducting initial public offerings in the short term, Philippine Stock Exchange president and chief executive Hans Sicat said Tuesday. Sicat said several companies planning to hold IPOs might defer their plans, until the volatility in the stock market improved. “The volatility in the market may be a negative factor and this could make companies hesitant to pull the trigger,” he said. Sicat said the country’s macroeconomic fundamentals remained unchanged despite the recent massive sell-off in the Philippine equities market. “The economic situation now is different from seven years ago. The successive growth in GDP has built solid foundation for growth moving forward. I don’t think growth will reverse easily,” Sicat said.
BSP adds more perks for rural bank mergers The Philippine Star 22nd Aug 2015
The Bangko Sentral ng Pilipinas (BSP) has issued the guidelines of a new program further sweetening the incentives as well as financial package to encourage mergers and consolidations among rural banks. BSP Deputy Governor Nestor Espenilla Jr. has issued Circular Letter 2015 – 050 laying down the incentives and implementing guidelines for the Consolidated Program for Rural Banks (CPRB). The CPRB was conceptualized by the BSP, Philippine Deposit Insurance Corp. (PDIC), and Land Bank of the Philippines and is intended to strengthen rural banks that play a major role in financial inclusion.
PHL life insurance market among most liberalized in Southeast Asia Business World 19th Aug 2015
The Philippine life insurance industry is the second most liberalized market among countries in the Association of Southeast Asian Nations (ASEAN), a study made by Milliman, Inc., a global actuarial and consulting firm showed, but penetration is still one of the lowest in the region. The Milliman ASEAN Liberalization Index (MALI), published in a report entitled “Potential Implications of the ASEAN Economic Community for the Life Insurance Industry,” showed that the Philippines scored 58 points out of a total 100 in the overall index, putting it at second place among the 10 ASEAN member economies behind Singapore, which scored 70 points. Countries were rated across eight features “that capture some key characteristics of a life insurance market, and assessed the relative stage of development or openness of each feature for each ASEAN country in the form of an index.”
Foreign bank rivals cite hometown advantage of locally based lenders Business Mirror 18th Aug 2015
Earlier restrictions on the entry of foreign banks, as well as current land- ownership restrictions to foreign entities, may not be the only reasons foreign lenders have shown reluctance in exploring the Philippine market. In the latest issue of Oxford Business Group’s (OBG) The Report: The Philippines 2015, OBG said foreign banks also find it difficult to compete given the surprising strength of the local banking system. This strength, according to OBG, even has the potential to stand out against banking systems in peer countries by the time the financial integration under the Asean takes place.
Philippines: Insurance mart to see record premiums this year Asia Insurance Review 18th Aug 2015
The Philippine insurance sector expects a record year for premiums this year, with the number likely to reach PHP250 billion (US$5.4 billion), according to Insurance Commissioner, Mr Emmanuel Dooc. This would be higher than the PHP200-billion target set earlier by the regulator, given the encouraging figures seen in the first half of 2015, reported Business World. The original target of PHP200 billion is nearly triple the total five years ago. Total premiums rose by 42% to PHP116.1 billion for the first half of this year, compared to PHP81.8 billion in 1H2014. Premiums of life insurers soared by 49.5% to PHP98.8 billion in the first six months while premiums written by non-life insurance firms increased by 10.5% to PHP17.3 billion.
Food & Agriculture
PHL slaps ban on poultry products from Germany Business Mirror 27th Aug 2015
The Philippine government has slapped a temporary ban on the importation of domestic and wild birds and poultry products from Niedersachsen, Germany. The Department of Agriculture issued Memorandum Order 41 authorizing the ban on poultry products from Niedersachsen, following an outbreak of highly pathogenic avian influenza (HPAI) in the area. An official report was submitted by Dr. Karin Schwabenbauer, chief veterinary officer of the Directorate of Animal Health and Animal Welfare in Bonn, Germany, to the Internationale Des Epizooties confirming the outbreak.
Sugar output in next crop year seen declining by 2% Business Mirror 27th Aug 2015
Sugar production for the next crop year could decline by 2 percent to 2.27 million metric tons (MMT) from 2.31 MMT recorded in the 2014-2015 crop year, the Sugar Regulatory Administration (SRA) said on Thursday. In Sugar Order (SO) 1 it issued on August 26, the SRA said sugar output for crop year 2015-2016, which will start on September 1, could be lower due to the “unfavorable weather conditions” and reduction of sugarcane areas. The projected sugar output for crop year 2015-2016 is just enough to supply the domestic market’s requirement for sugar pegged at 2.25 MMT.
Coca Cola infusing another $1.2B in PH operations Philippine Daily Inquirer 20th Aug 2015
Coca Cola Co., the largest beverage firm in the world, is spending $1.2 billion for the expansion of its Philippine operations, as it aims to strengthen its foothold in the local market. The fresh capital outlay is being made on the back of the steady growth of the Philippine economy, conducive investment climate, rising consumption and disposable incomes, Coca Cola chair and chief executive officer Muhtar Kent said in an interview on Wednesday. “We’re currently in a $1.2-billion (investment) program between now and 2020 in the Philippines. That investment means we will hire more people, add more factories, more lines, capacity, and (beef up our) distribution (network). We will also have this capital investment program to help our partners and that of course tells you that we still believe in the future here,” Kent told the Inquirer.
Health & Life Sciences
Philippines' Family Planning Law Finds Challenges Voice of America 18th Aug 2015
A long-awaited reproductive health law in the Catholic-majority Philippines that took effect a year ago is still facing challenges. Health service providers are dealing with a new Supreme Court order curbing some free contraception for the poor. The delivery ward at the Philippines’ largest public maternity hospital is filled by rows of beds with mothers in hospital gowns. Some women breastfeed while others try to calm crying newborns. At the Joseph Fabella Memorial Hospital in Manila, these women will be out in a day and counselors have little time to let them know about family planning. Dr. Esmeraldo Ilem heads comprehensive family planning services at Fabella, which includes options from natural methods of birth control to artificial contraception. He says most of the mothers here are poor and have five children on average. A few say they have opted for some form of contraception after giving birth.
Philippines reports affordable healthcare gains SciDev.Net 23rd Aug 2015
The government-owned Philippine Health Insurance Corporation (PhilHealth) is claiming a dramatic surge in membership to over 80 per cent of the population, up from 38 per cent in 2000. While these figures have been hotly contested, there is a general sense that PhilHealth coverage is rising. But the question is, how will the health insurance firm contain the costs? PhilHealth is currently using a case rate payment system that offers hospitals a fixed fee for each treatment. But it is looking at adding a ‘pay-for-performance’ (P4P) model that rewards healthcare providers — physicians, hospitals and medical groups — for meeting certain quality standards.
Chiz asks PhilHealth to beef up medical facilities in public hospital, clinics InterAksyon 21st Aug 2015
Senator Francis "Chiz" Escudero on Friday said the government should improve facilities and services in public hospitals and health clinics across the country if it expects the universal health coverage plan under the Philippine Health Insurance Corp. (PhilHealth) to work. The senator, who used to chair the Senate Committee on Finance, said P13.5 billion and P13.2 billion were allocated in 2014 and 2015, respectively, for the government's Health Facilities Enhancement Program (HFEP) under the Department of Health (DOH). Unfortunately, he pointed out, many health institutions still lack equipment such as X-ray and ultrasound machines, computed tomography (CT) and magnetic resonance imaging (MRI) scanners, electrocardiogram (ECG) machines and ventilators.
Philippines ‘winning’ fight against tuberculosis BusinessWorld 20th Aug 2015
The Philippines is one of seven nations that have achieved the 2015 Millennium Development Goal to fight tuberculosis (TB). Aside from the Philippines, the six other countries are Brazil, Cambodia, China, Uganda, Tanzania, and Vietnam. Based on 2010 health statistics, the Department of Health (DoH) said that TB ranked as the 8th leading cause of sickness and as the 6th leading cause of death. As a “high burdened country,” coming close to eradicating the disease is a milestone for celebration. The Philippines has developed and put in place the 2010-2016 Philippine Plan of Action to Control TB.
Pharma production in Philippines to hit P164 billion in 2018 Manila Bulletin 19th Aug 2015
The country’s pharmaceutical industry is projected to grow by 4.5 percent annually over the next five years reaching P164 billion in 2018 from P146 billion in 2014, according to a report. A report entitled “Partnering for Nation Building: The Contributions of the Philippine Pharmaceutical Industry to Health and Economy,” prepared by IMS Consulting for the Pharmaceutical Healthcare Association of the Philippines (PHAP), said the projected amount represents the value output or production of industry, including research based pharmaceutical companies and generic companies. The report is available at http://www.phap.org.ph/files/downloadables/54_1.pdf.
ICT
Growing mobile data usage boosting telecom revenues The Philippine Star 24th Aug 2015
The increasing use of mobile devices to access the Internet offers new opportunities for telecommunication firms Philippine Long Distance Telephone Co. (PLDT) and Globe Telecom Inc. to grow more. Suraj Moraje, managing partner at global management consulting firm McKinsey & Co. said in an email the move of PLDT and Globe to focus on data services and content is in line with what most telco firms are doing globally. Such move is driven both by opportunity and by necessity as consumers are spending more time on communication through a form of data service such as email and social apps including Facebook, Viber, and Line.
Foreign groups rally behind creation of ICT Department The Philippine Star 24th Aug 2015
Foreign business groups in the Philippines are once again lobbying for the creation of a new government body solely focused on developing the information and communications technology in the country. In a letter to House Speaker Feliciano Belmonte Jr., the Joint Foreign Chambers (JFC) of the Philippines reiterated its call for the creation of a Department of Information and Communications Technology (DICT). “JFC has long supported positive reforms that seek to promote a national ICT development agenda through the creation of DICT to further consolidate the country’s position as an internationally competitive investment destination,” foreign business groups said.
Gov't studying proposal to invest in broadband infrastructure The Philippine Star 19th Aug 2015
The government will study the proposal that it should invest in broadband infrastructure to improve the country's Internet connectivity, Malacañang said Wednesday. Communications Secretary Herminio Coloma Jr. said according to National Telecomunications Commission (NTC) head Gamaliel Cordoba, an inter-agency group will study the proposal that government invest in putting up broadband infrastructure, a common practice in other countries. "Also to be studied is the possible giving of incentives to private companies that provide Internet connectivity to the unserved or underserved areas," Coloma said in a text message.
Smart Internet users fueled data-usage explosion in H1 Business Mirror 19th Aug 2015
The wireless services subsidiary of Philippine Long Distance Telephone Co. (PLDT) experienced an “explosion” in data usage during the first half of the year, fueled by its free Internet promo, its fresh content offerings, and the rapid growth in smartphone adoption. Smart Communications Inc. saw mobile-data traffic passing through its network surge by almost 170 percent year-on-year during the first half of 2015, signaling that users are accessing the Internet on their mobile devices. “This ‘data explosion’ started when we introduced our ‘Free Internet’ promo last year which aimed to give our subscribers an opportunity to try out various Internet and digital services,” Smart Executive Vice President Ariel P. Fermin said on Wednesday.
NTC gears up to enforce new Internet speed regulations Business World 18th Aug 2015
The National Telecommunications Commission (NTC) said it will start measuring actual Internet speeds in mid-September as it outlined before a Senate panel a package of further measures to improve Internet service. In a follow-up to the agency’s order for more transparency on Internet speeds earlier this month, NTC Director Edgardo R. Cabarios said at the hearing that he recommends the “creation of an Inter-Agency body with Congress to study government intervention in... infrastructure to increase Internet speed and penetration.” The NTC is also seeking an increase in the penalty for violating the Public Telecommunications Policy Act of the Philippines and NTC memorandum circulars.
Infrastructure
Infrastructure spending spikes 37% in Q2 The Philippine Star 27th Aug 2015
Public spending for infrastructure and capital outlay went up more than 37 percent to P81.8 billion in the second quarter of the year from P59.6 billion in the same period last year, data from the Department of Budget and Management showed. Budget Secretary Florencio Abad said the increase was largely due to infrastructure development programs of the Department of Public Works and Highways, which spent P8.83 billion more than its target during the period. Overall government expenditures during the second quarter rose 12.4 percent to P567.9 billion from P505.2 billion in the same period last year.
Philippines, Japan ink deal for P13-B infra projects The Philippine Star 26th Aug 2015
Philippines and Japan on Tuesday signed two loan projects worth P13 billion. The two projects were the Metro Manila Priority Bridges Seismic Improvement Project and the Davao City Bypass Construction Project (South and Center Sections) which were signed and noted by Philippine Foreign Affairs Secretary Albert del Rosario and Japanese Ambassador to the Philippines Kazuhide Ishikawa. Department of Finance Secretary Purisima and Japan International Cooperation Agency President Akihiko Tanaka were also present to seal the loan agreement for the two projects. The Metro Manila Priority Bridges Seismic Improvement Project of the Department of Public Works and Highways (DPWH) will cover replacement, retrofitting and reinforcement of the Guadalupe Bridge and Lambingan Bridge to strengthen the resilience of the transport network in Metro Manila in case of large-scale earthquakes.
‘Transport system driving tourists away’ Manila Standard Today 25th Aug 2015
Poor infrastructure coupled with a ‘disastrous transportation system’ are some of the reasons the Philippines will highly unlikely reach the 10-million targeted international tourist arrivals by 2016, a militant lawmaker said on Monday. Kabataan party-list Rep. Terry Ridon, during the congressional deliberation for the budget of the Department of Tourism, said the decrepit state of the country’s infrastructure and transportation system will discourage tourists from going to the Philippines. “With the current state of our infrastructure and transportation system, the 10-million arrival target for 2016 will remain like that – a target,” Ridon, member of the Makabayan Bloc, said.
Aggressive infra development a must for new government, says report The Philippine Star 24th Aug 2015
The government should not let the elections next year derail ongoing initiatives to upgrade the country’s poor infrastructure which remains a serious threat to the national economy, according to a new report. Lack of adequate infrastructure is a setback to the country’s growth, and despite the adoption of a more aggressive infrastructure development program, there are concerns that implementation remains slow and that thrusts could change with new leaders on board, according to the paper. “For an archipelagic nation with high urban population density and heavy reliance on air and water transport, (weak infrastructure network) is a glaring risk to sustainable and inclusive growth,” said the paper, titled “Competitiveness: Sustainable and Inclusive Growth-The Philippines” and published recently by Deloitte.
9 firms submit bids for rehab of Clark road The Philippine Star 20th Aug 2015
A total of nine firms submitted proposals for the improvement and rehabilitation of some 19.4-kilometers of existing roads leading to and within Clark Green City, the Bases Conversion and Development Authority (BCDA) said. In a statement, BCDA said the nine firms which submitted bids for the P78.3 million road project in Clark Green City are 4B Construction Corp., D.K. Jockson Construction, Haidee Construction, IPM Construction Corp., Leadway Construction, New Kanlaon Construction, Subiccon Corp., Tokwing Construction, and Weirr Corp.. “We are happy at the number of bidders who submitted their respective bids and look forward to award the contract to the firm with the best bid once the bids have all been evaluated,” BCDA president and chief executive officer Arnel Paciano Casanova said.
Interest mounts in rail PPP deal Business World 20th Aug 2015
AT LEAST 27 companies have shown interest in the Aquino administration’s biggest public-private partnership (PPP) project to date -- the P170.7-billion South Line of the North-South Railway Project (NSRP).
Firms cleared for Davao port bidding Business World 19th Aug 2015
Five local and foreign groups have qualified to compete for the P18.99-billion deal to modernize the Davao Sasa Port -- the first seaport public-private partnership (PPP) project under the Aquino administration, the Transportation department said in an official notice. “Please be informed that after a full, detailed evaluation of qualification documents submitted to the Pre-qualification, Bids and Awards Committee (PBAC) in relation to the... project, the PBAC has rated the following as qualified...,” Transportation Undersecretary for Legal Affairs Jose Perpetuo M. Lotilla said in General Bid Bulletin No. 08-2015 on Aug. 18.
Manufacturing
Auto parts makers bank on CARS for growth The Philippine Star 25th Aug 2015
The Philippine Parts Maker Association (PPMA) is pinning its hopes on the government’s Comprehensive Auto Resurgence Strategy (CARS) program in the face of dwindling automobile production. In a statement, PPMA said despite a substantial increase in the industry vehicle sales at 269,000 units last year, only 32 percent of these were locally assembled. According to the PPMA, last year’s outcome was a far cry from the highest recorded industry sales with locally assembled completely knock down (CKD) vehicles in 1996 when there were 162,000 units sold, 85 percent of which were locally assembled.
|
