Philippines Update: Aquino Administration Vows to Step Up Reforms in Final Six Months

• January 29: Philippines SME Workshop: "Supply Chain Readiness Training - Automotive Sector"

Aquino Administration Vows to Step Up Reforms in Final Six Months

The recent pledge by the administration of President Benigno S. Aquino III to continue to pursue economic reforms in its final six months, in combination with a lack of significant differences between the economic policy positions of the top candidates in the May 2016 presidential election, has bolstered confidence among investors of at least broad policy continuity following the polls, despite lingering uncertainty over the outcome of the election. On January 3, Aquino’s administration pledged to “intensify and expand” the economic and management reforms, as well as social services and programs intended to encourage inclusive economic growth, that the administration has pursued over the course of Aquino’s six-year term, which ends on June 30, 2016. The appointment of Adrian S. Cristobal Jr. as the new Secretary of the Department of Trade and Industry (DTI) is an indication of the Aquino administration’s priorities in the final months. Cristobal, who was officially sworn in on January 4, has stated that he plans to focus on strengthening consumer protection and helping micro, small, and medium enterprises. Several local business groups – including the Makati Business Club and the Philippine Exporters Confederation – have voiced support for Cristobal’s appointment. However, others, such as the Philippine Chamber of Commerce and Industry and the Management Association of the Philippines, have stated that they would prefer DTI to focus on easing business regulations and further strengthening the country’s foreign trade policy. Investor sentiment appears to reflect confidence in not only the administration’s policy direction in Aquino’s remaining months, but also likely policy continuity following the May 9, 2016, presidential elections. Despite continued uncertainty over top candidate Grace Poe’s eligibility to run in the election, investors are, “not expecting any big change in policy,” given that, “[t]he presidential candidates are quite similar in terms of policies,” according to Wee-Ming Ting, who heads the Asian fixed income team at Pictet Asset Management’s Singapore office. Moody's Investors Service specifically noted the policy stability of Aquino's final year in office when it recently scored the political risk arising from the upcoming election as "low." Non-payment concerns for Philippine sovereign debt have also decreased; the net amount of sovereign debt protected by credit default swaps for potential non-payment dropped 32 percent in 2015.

Adrian S. Cristobal Jr. Appointed New Secretary of Department of Trade and Industry

President Benigno S. Aquino III appointed Adrian S. Cristobal Jr. the new Secretary of the Department of Trade and Industry (DTI) on December 29, 2015. In a speech at the official turnover ceremony on January 4, Secretary Cristobal vowed to move quickly and continue along the same reform path as his predecessor, despite having only several months to serve as the DTI head before Benigno’s term ends at the end of June. Cristobal said that assisting micro-, small-, and medium-sized enterprises will continue to be a primary focus of the DTI. He also stated that the department will seek to implement ease of doing business reforms, as well as lure investors by actively engaging in trade promotions and pursuing preferential trade agreements. Cristobal will serve as Interim Trade Secretary until the Commission of Appointments approves him for the position. Cristobal previously served as Trade Undersecretary for Industry Development and Trade Policy from 2012. During that time, he also served as the managing head of the Board of Investments. He first joined the Aquino administration in August 2010, serving as Trade Undersecretary for International Trade. Cristobal replaces former DTI Secretary Gregory Domingo, whose resignation took effect on December 31. Domingo served as DTI Secretary for five years.   

Philippines to Join China-led AIIB Infrastructure Bank

Philippines follows Vietnam in opposing China's runway test The Philippine Star 5th Jan 2016
The Philippine government said on January 4 that like Vietnam, it opposes China's recent test of a newly completed runway on one of seven islands Beijing has constructed in the disputed South China Sea. Department of Foreign Affairs spokesman Charles Jose said the government was considering protesting China's action, as Vietnam did, adding that the test at Fiery Cross Reef "adds to tension and uncertainties in the region."

DFA to summon Chinese envoys over new incursion Business Mirror 5th Jan 2016
The Department of Foreign Affairs (DFA) on Monday, January 4, said it will summon Chinese Embassy officials in Manila to hand them another diplomatic protests over China’s incursions at the Fiery Cross Reef (Kagitingan Reef) on the West Philippine Sea on January 2. DFA Spokesman Charles Jose said this would be done as soon as the department has filed a protest against China for landing a civilian aircraft on the Fiery Cross, despite pending litigation in the Permanent Court of Arbitration in The Hague, the Netherlands.

New trade secretary vows to move fast in last 6 months Inquirer 5th Jan 2016
Newly named Trade Secretary Adrian S. Cristobal Jr. on Monday vowed to move at full speed in the last six months of the Aquino administration and build on the gains achieved by his predecessor despite the limited time under his leadership. The new trade chief said that micro, small and medium enterprises would continue to be at the core of the Department of Trade and Industry’s measures. The department will also continue to actively engage in trade promotions to entice investors; institute ease of doing business reforms; pursue preferential trade agreements; and protect consumer rights by promoting vigilance and quality consciousness among consumers, producers and traders.

Cristobal to prioritize MSMEs, consumer protection Business Mirror 5th Jan 2016
The new chief of the Department of Trade and Industry (DTI), Adrian S. Cristobal Jr., on Monday vowed to focus on consumer protection and help micro, small and medium enterprises (MSMEs) in the remaining months of the Aquino administration. In his speech at the turnover ceremony held in Makati City on January 4, Cristobal said the DTI will ensure that MSMEs will be at the core of all its policies, programs and activities. Business groups welcomed Cristobal’s appointment and his focus on MSMEs and consumer protection. Another DTI official—Trade Undersecretary for Trade Promotions Ponciano C. Manalo Jr.—has also resigned from his post, effective December 31. Foreign Trade Service Corps Assistant Secretary Maria Roseni Alvero will serve as officer in charge for the Industry Promotions Group, which Manalo previously headed.

Military still keen on peace talks with reds The Philippine Star 4th Jan 2016
The military remains optimistic about the prospects of the peace process with communist rebels despite the alleged violations committed by the New People’s Army (NPA) during the ceasefire period.

Palace vows to step up reforms as Aquino winds up 6-year term Business Mirror 3rd Jan 2016
Malacañang on Sunday vowed to work overtime, as President Aquino winds up unfinished business and firm up government reforms instituted in his six-year term, which officially ends at noon of June 30, this year.

Cristobal appointed as new DTI Secretary Business World 29th Dec 2015
ADRIAN S. Cristobal, Jr. has been appointed by President Benigno S. C. Aquino III as the new Department of Trade and Industry (DTI) Secretary, Malacañang announced on Tuesday. “According to Executive Secretary Paquito Ochoa, Jr., President Aquino has appointed Atty. Adrian S. Cristobal, Jr. as ad interim Secretary of Trade and Industry, effective 31 December 2015, vice Gregory L. Domingo,” Communications Secretary Herminio B. Coloma, Jr. said in a statement.

Philippines Presidential Election: Grace Poe Kept On Ballot For Now By Supreme Court International Business Times 28th Dec 2015
The Supreme Court of the Philippines on Monday temporarily prevented the elections agency from implementing its decision to disqualify Sen. Grace Poe, one of the front-runners in the country's presidential campaign. With the court in recess, Chief Justice Maria Lourdes Sereno issued two temporary restraining orders (TROs) on the two Commission on Elections rulings that canceled Poe's certificate of candidacy on the grounds that she failed to meet nationality and residency requirements. The TROs came hours after Poe appealed the Commission on Elections rulings to the court. The court gave the commission 10 days to submit its response to Poe's appeals and set oral arguments for Jan. 19.

Jejomar Binay's greatest challenge Rappler 22nd Dec 2015
The odds were stacked mostly against Vice President Jejomar Binay in 2015, as more evidence of his alleged corrupt practices – along with that of his family and allies – was unearthed this year. For one, the investigation on the overpriced Makati City parking building – first revealed in 2013 and made basis for the plunder case filed against Binay – continued, with more details exposed.

ASEAN at court in Sunnylands East Asia Forum 6th Jan 2016
At the ASEAN Summit in Kuala Lumpur, in November, President Obama reached out to elevate the United States–ASEAN relationship to a ‘strategic partnership’ and invited ASEAN Leaders to a summit that, it’s now been announced, will take place at Sunnylands in Rancho Mirage, California on 15–16 February. This is a bold initiative of possible geopolitical consequence. This will be the first such summit hosted by the United States with ASEAN leaders. Its declared aim is to build on ‘the deeper partnership that the United States has forged with ASEAN since 2009 and will further advance the Administration’s rebalance to Asia and the Pacific. For nearly 40 years, the United States and ASEAN have worked toward stability, prosperity, and peace in Southeast Asia. This summit will provide leaders a forum to strengthen cooperation under the new United States–ASEAN strategic partnership, launched in Kuala Lumpur, on political, security, and economic issues.

New rules clarify VAT exemptions enjoyed by foreign airlines, shipping companies Business World 29th Dec 2015
The Bureau of Internal Revenue (BIR) has issued rules clarifying value-added tax (VAT) exemptions enjoyed by foreign airlines and shipping companies after a two-year-old law changed amounts collected from them. Through Revenue Regulation (RR) 15-2015 signed on December 28, 2015, the BIR removed the 12% VAT imposed on foreign carriers, following the passage of Republic Act (RA) No. 10378 which subjected international carriers to a percentage tax. The new rules now exempt all foreign-flag carriers in charge of transporting passengers and cargo to and from the Philippines from the 12% VAT, as the new law signed in 2013 instead subjects these companies to a quarterly 3% common carrier’s tax.

PH Senate vows to approve Customs modernization act early next year Port Calls Asia 21st Dec 2015
The Philippine Senate vows to approve the Customs Modernization and Tariff Act (CMTA) when it resumes sessions next year. Senate president Franklin Drilon said the CMTA, as well as other priority bills, will be green lighted when sessions resume on January 18. The CMTA was approved on second reading by the Senate on December 14, just before Congress took a Christmas break on December 16. The measure has been approved on third and final reading at the Lower House.

AFP to acquire 93,600 rounds of 20mm ammo for FA-50PHs Manila Bulletin 3rd Jan 2016
In line with ongoing efforts to make the country’s FA-50PH “Fighting Eagle” light-interim fighter aircraft combat ready, the Department of National Defense (DND) is allocating the sum of P106.138 million for the acquisition of 93,600 rounds of 20mm ammunition. The money will be sourced from the Armed Forces of the Philippines (AFP) Modernization Act Trust Fund, the bid bulletin from the Philippine Government Electronic Procurement System said. The ammunition will be used to arm the FA-50PH’s modified A50 gun system.

More Ships, Planes, Combat Gear for AFP in 2016 Inquirer 2nd Jan 2016
The Armed Forces of the Philippines (AFP) is expecting more assets to be added to its inventory in 2016 amid its efforts to build a minimum credible defense. The military’s boost of assets occurs in the wake of China’s sweeping expansion in the West Philippine Sea (South China Sea). Some of the assets expected in 2016 include the Philippine Navy’s first strategic sealift vessels (SSVs) due to arrive in May. Some of the other assets expected in 2016 are amphibious assault vehicles, radios and mortars. Night fighting systems for the Philippine Army worth P1.1 billion for 4,464 sets are also expected in 2016.

PCG to get 10 ships from Japan starting 2016 The Philippine Star 29th Dec 2015
Ten brand new vessels from Japan will be delivered to the Philippine Coast Guard between 2016 and 2018. Some of these ships will be assigned to the West Philippine Sea to augment those being used for search and rescue operations. The first three vessels are expected to arrive every other month starting in the second half of 2016, five more by 2017, and the remaining two in 2018, according to Coast Guard officer-in-charge Rear Admiral William Melad. The acquisition of the 10 vessels from Japan is covered by the Maritime Safety Capability Improvement Project. It was awarded by the Department of Transportation and Communications to the Japan Marine United Corp, and is being implemented as an official development assistance project, via a tied loan extended by the Japan International Co- operation Agency (JICA).

Aquino: PH to spend $1.8B for military modernization Rappler 21st Dec 2015
President Benigno Aquino III promised Monday, December 21, that the P83.9 billion ($1.77 billion) allocated for military modernization projects would be spent by 2017 as the country faces a territorial dispute with China. Speaking at a ceremony to mark the 80th anniversary of the armed forces, Aquino said his administration had already spent P56.79 billion of the total scheduled for full disbursement by 2017 on "big-ticket" modernization programs. The Philippines has been the most vocal in opposing China's claims despite having one of the region's weakest militaries. As ties with China have soured, Aquino has stepped up efforts to strengthen the country's defences, by acquiring new weapons and improving defence ties with allies like the United States and Japan.

FMIC, DBS see GDP growth at 6% this year The Philippine Star 6th Jan 2016
The investment banking arm of Metropolitan Bank & Trust Co. and DBS Bank Ltd. of Singapore see the economy expanding by at least six percent this year amid external shocks. Rabboni Francis Arjonillo, president of Metrobank’s First Metro Investments Corp. (FMIC), said the economy is expected to expand between six and 6.5 percent this year. Arjonillo said the growth would be fueled by sound macroeconomic fundamentals and robust domestic consumption. He also cited the growing business process outsourcing (BPO) sector, stable peso, moderate inflation, and declining oil prices. DBS sees the country’s GDP expanding by six percent and inflation accelerating to 2.5 percent this year.

Optimism abounds as expansion drivers seen more than headwinds Business Mirror 3rd Jan 2016
First of three parts Long graveyard shifts and cold call-center floors have been the norm in Justin Capiral’s workplace in the past three years. But the 22-year-old call-center agent continues to work and dream of better things for his future, even projecting to notch a major milestone this year.

Merchandise imports rise for fifth straight month Business World 29th Dec 2015
Inbound shipment of goods opened the third quarter on a strong note, fueled by a double-digit increase in the Philippines’ purchases of raw materials and intermediate products. Preliminary data the Philippine Statistics Authority (PSA) released on Tuesday showed that the country brought in $6.53 billion worth of goods last October, 16.8% more than the $5.59 billion imported in 2014’s comparable month that also bared a smaller 15.4% annual increase.

Inflation seen staying low up to 2018 Business World 29th Dec 2015
Inflation is expected to remain muted in the next three years given “favorable” conditions seen to temper the rise in prices against any shocks, economic managers said. In a statement sent late Tuesday, Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco, Jr. said the interagency Development Budget Coordination Committee (DBCC), which sets the government’s macroeconomic assumptions, has kept its 2%-4% target range for inflation until 2018.

Looking forward to 2016 and beyond Business Mirror 29th Dec 2015
In six more months, the current administration will mercifully vanish from the scene to give us a chance to forget the pettiness and incompetence with which it is associated. Let us greet the New Year with charity in our hearts that we may live in harmony with our countrymen and countrywomen, and clarity in our minds that we may know what we want to make of our lives, individually and as a nation.

Gov’t eyes up to P135B in Q1 domestic borrowing Business World 29th Dec 2015
The governmentplans to borrow up to P135 billion from the domestic market in the first quarter of 2016, an offer size unchanged from this quarter but involving more long-dated papers. In a memorandum posted on its Web site, the Bureau of the Treasury said it will offer as much as P60 billion worth of Treasury bills (T-bills) and P75 billion worth of Treasury bonds (T-bonds) between January and March.

‘Growth budget’ designed for 8% GDP gain signed into law by Aquino Business World 22nd Dec 2015
President Benigno S. C. Aquino III signed the P3.002-trillion national budget for 2016 on Tuesday, a spending program intended to bring the economy to growth levels of up to 8%, powered by infrastructure. “This is the sixth consecutive year the budget of our people was passed on time,” Mr. Aquino said in Filipino, in a speech after the signing ceremony in Malacañang, the official translation of which was provided to media.

BSP hikes FDI forecast for 2016 to $6.3 billion Business Mirror 22nd Dec 2015
The influx of foreign direct investments (FDI) in the country is expected to improve in 2016, due largely to the improvement in the local and global economic conditions, the Bangko Sentral ng Pilipinas (BSP) said. With this, the BSP hiked its projection of FDI in the country to $6.3 billion in 2016. This is higher than the projected FDI inflows to the country in 2015, at $6.3 billion.

Brace for tight power supply in Luzon due to plant outages Business Mirror 6th Jan 2016
Businesses and households should brace for possible brownouts, especially in the second half of 2016, as eight power plants in Luzon with a combined capacity of 4,547.8 megawatts (MW) are scheduled to implement maintenance shutdowns this year. The majority of these facilities will go offline in the July-to-December period. This means power supply—at least in the areas being served by the Manila Electric Co. (Meralco)—could prove tight in the second half of the year.

Blackouts Threaten Philippines' Mindanao After Tower Attacked Business World 6th Jan 2016
The Philippines is facing possible power outages on its second-largest island after an attack on a transmission tower that’s preventing two hydroelectric plants from supplying to the grid. Mindanao is “facing a possible grid collapse if the situation persists,” National Grid Corp. of the Philippines, which operates the power-transmission highway, said in a statement posted on its Facebook and Twitter accounts. Davao City and General Santos City are in “real danger of being completely cut off” from power supplies, it said. A red alert has been raised in the southern island, which means it has no contingency reserves. Two units of the Agus hydroelectric power complex with a combined capacity of 150 megawatts were isolated from the grid after unidentified men bombed Tower 25 in Lanao del Sur province on Christmas Eve. National Grid said it has been unable to restore the facility after the owner of the property refused entry due to payment issues.

Mindanao power supply to stabilize, needs more renewables in mix Business World 4th Jan 2016
When President Benigno S. C. Aquino III took his oath as the President of the Philippines in 2010, Mindanao didn’t have enough power. By the time Mr. Aquino steps down on June 30 this year, the southern island is projected to have moderate reserves, thanks to investors who had committed to building new plants even before he became president. In a presentation in late 2015, Engineer Noriel R. Christopher Reyes, Department of Energy (DoE) science research specialist, said Mindanao will have about 1,920 megawatts (MW) in additional power by 2019 on top of the current 1,340-MW supply.

GBPC seeks contractor for biomass plant Business World 3rd Jan 2016
Global Business Power Corp. (GBPC), the power generation arm of GT Capital Holdings, Inc., is ready to start the bidding process early this year for the first engineering, procurement and construction (EPC) contract for its 40-megawatt (MW) biomass plant in Negros Occidental. The $130 million power facility, designed to use sugarcane bagasse for fuel, serves as GBPC’s maiden venture into the renewable energy (RE) sector. The facility, located in La Carlota City, one of the country’s major sugar producers, is targeted for commercial operation by 2017. GBPC -- one of the biggest independent power producers in the Visayas -- is undertaking the project in partnership with Roxas Holdings, Inc. (RHI), which owns the Central Azucarera de la Carlota, Inc. Meanwhile, GBPC is also looking into tapping other forms of renewable energy, particularly other biomass fuels and hydropower.

EDC to build P130M facility to connect Bac-man3 to Luzon grid Rappler 30th Dec 2015
The Lopez-led Energy Development Corporation (EDC) is seeking regulatory approval for a P130-million ($2.765 million) facility to connect its Bac-Man 3 geothermal expansion project to the Luzon grid. EDC’s Bac-Man 3 geothermal power plant in Sorsogon province, which is expected to be operational by December 2017, will add 31-megawatt (MW) to the Bac-man geothermal fields two existing plants’ capacity of 130 MW. The project is aimed at supplying the rapidly increasing energy demand in Luzon. Existing capacity of the Luzon grid as of 2015 is 11,612MW. The Department of Energy (DOE) projects that an additional capacity of 1,000MW will be needed by 2017.

BSP expands MBOs’ financial inclusion role The Manila Times 5th Jan 2016
Micro-banking offices (MBOs) have been allowed to approve and open deposit accounts for clients with their allowable activities having been expanded as part of the Bangko Sentral ng Pilipinas’ (BSP) financial inclusion efforts. The central bank said on Tuesday that it had recently approved a measure that would enable MBOs to complete the process of account opening, from application up to the acceptance of initial deposit, provided that the necessary controls are in place. MBOs are scaled-down offices that provide a specified range of activities and services, such as the acceptance of micro-deposits, disbursements of micro-loans, selling of microinsurance, purchase of foreign currency, bills payments, government pay-outs and e-money conversion.

Banks’ real estate exposure up 23.6% The Manila Times 4th Jan 2016
Philippine banks’ exposure to real estate surged by 23.6 percent year on year as of end-September 2015, data from the Bangko Sentral ng Pilipinas (BSP) showed, with loans accounting for the bulk but also marking a drop with respect to soured transactions. An analyst said the rise in banks’ real estate exposure (REE) could have driven by investors anticipating higher global interest rates. Latest central bank data showed the REE of universal, commercial and thrift banks at P1.432 trillion as of the end of September, up by P273 billion from the P1.159 trillion recorded a year earlier. From the previous quarter, the REE was up 5.4 percent from P1.359 trillion.

Pre-election months may see rush of fund raising Business World 3rd Jan 2016
The capital market may see a flurry of deals ahead of the national election, with bonds and preferred shares being the desired fund-raising mode for corporates even as first-time equity issuers line up to beef up their war chest. Jose Luis F. Gomez, president of RCBC Capital Corp., said a number of issuances -- mostly involving debt and preferred shares -- are being considered in the first quarter of 2016. “I think the rush is for the first quarter. Thereafter, there may be a wait-and-see period,” Mr. Gomez said in a mobile phone message.

Old bills no longer valid for purchases The Manila Times 31st Dec 2015
New Design Series (NDS) banknotes that have been in circulation for almost three decades can no longer be used for purchases starting today in line with a central bank demonetization program. The old banknotes, which consist of 5-, 10-, 20-, 50-, 100-, 200-, 500- and 1,000-peso denominations, were first issued on June 12, 1985. They can still be exchanged at authorized financial institutions for the New Generation Currency (NGC) series but will become worthless beginning 2017. Government institutions holding old banknotes that cannot be exchanged during the prescribed period, such as money being used as evidence in a lawsuit, will have to request the BSP Cash Department in writing, also within the period of exchange, for a special exchange arrangement.

PNB, Allianz form bancassurance venture Business Mirror 22nd Dec 2015
Philippine National Bank (PNB) has sold its 51-percent stake in life insurer PNB Life to Munich-based Allianz S.E. to form a joint venture called Allianz PNB Life Insurance Inc. The pact is a 15-year bancassurance agreement with Allianz, one of the strongest financial services company offering property and casualty insurance, life and health insurance, as well as asset management. Under the terms of the agreement, Allianz acquired 51 percent and management control of PNB Life, the 10th-largest life insurance company in the Philippines.

BSP governor opens cybersecurity summit Business Mirror 22nd Dec 2015
Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. (center) leads the ceremonial ribbon cutting to open the Cyber Security Summit and Expo for the financial services industry held recently at the BSP headquarters in Manila. The summit featured international and local experts who discussed the rapidly evolving and growing threats to the security of electronic financial transactions and how banks and other financial organizations can fight these threats. The expo showcased the latest cybersecurity solutions available to the industry. The summit and expo were coorganized by the BSP, electronic-banking network BancNet, and the Information Security Officers Group. Assisting Tetangco are (from left) BancNet President Ricardo Chua, BSP Deputy Governor Nestor Espenilla Jr., BancNet General Manager Aristeo Zafra Jr. and Information Security Officers Group President Joey Regala.

Rice, corn fetched higher prices in 2014–PSA report Business Mirror 5th Jan 2016
Farmers planting rice, yellow corn and white corn earned more from their crops as farm-gate prices went up in 2014, according to the latest report of the Philippine Statistics Authority (PSA). In its report titled, Agricultural Indicators System: Prices and Marketing of Agricultural Commodities, the PSA said the average producer price index (PPI) for cereals rose to 186.2 percent. On the average, the the PSA said PPI for agriculture increased to 156.7 percent in 2014. This implies that the average price received by farmers for their produce was 54.7 index points higher than the 2006 price level. As for other crops, the PSA said the PPI of vegetables and legumes declined to 118 percent in 2014.

Proper labeling of food products sought Business Mirror 4th Jan 2016
Food manufacturers should put proper labeling to their products to promote public awareness on the importance of balanced diet, Lakas Rep. Rolando G. Andaya Jr. of Camarines Sur said. Andaya, vice chairman of the House Committee on Appropriations, said all commodities should bear a label specifying the business address of the manufacturer and the nutritional content of the product. Andaya has filed House Bill 5719 or the proposed Philippines Nutrition Label Act, which mandates the concerned government agencies to confiscate the consumer products proven to be hazardous to health and safety of the people. No commodity shall be distributed unless it conforms to the regulations of the Bureau of Food and Drug (BFD), the bill strictly provides. The bill does not cover those who are engaged in wholesale and retail distribution of commodities.

April launch seen for Philippine satellite The Philippine Star 2nd Jan 2016
The country will see the launching of its first satellite in April, Department of Science and Technology (DOST) Secretary Mario Montejo said. He said the schedule was set after the DOST firmed up the arrangements with an American provider of space shuttle services on which the “micro satellite” would be launched. Select scientists from the DOST are now in Japan, collaborating with space scientists from Hokkaido University, in the assembly of the micro satellite. DOST Assistant Secretary Raymund Liboro said the micro satellite will be a key component of the cutting edge remote sensing technology capability being developed by the DOST, which will use satellite imagery and ground data processing to generate data and information on agricultural and also marine and mountain conditions.

Climate, weather make-or-break for sugar in 2016 Business World 28th Dec 2015
Climate and weather will loom large in determining sugarcane yields in 2016, a year that the Sugar Regulatory Administration (SRA) expects to bring greater challenges. “The need to produce more sugar, efficiently, productively at lower cost is paramount in the face of these challenges,” said SRA Administrator Regina Bautista-Martin in a statement in late December 2015. She cited the ASEAN (Association of Southeast Asian Nations) Free Trade Area (AFTA), dwindling farm area and severe weather conditions brought about by the El Niño phenomenon as among the major challenges.

Gov’t subsidies surge as funds channeled to aid agriculture Business World 22nd Dec 2015
Subsidies paid out by the national government surged month on month in October as it raised releases for three state-run firms geared towards helping farmers, data from the Bureau of the Treasury showed. Releases to government-owned and -controlled corporations (GOCCs) stood at P6.48 billion for the month, much higher than the P729 million it handed out in September after a rise in allocations to the National Irrigation Administration (NIA), the Philippine Crop Insurance Corp. (PCIC), and the Philippine Rice Research Institute (PRRI).

MPIC unit gains minority stake in Manila hospital Business World 29th Dec 2015
The hospital arm of the Metro Pacific group has secured a minority stake in the owner of Manila Doctors Hospital (MDH) for P368 million. “Metro Pacific Hospital Holdings, Inc. (MPHHI) announced that on Monday, it has completed the acquisition of a 20% equity shareholding in Manila Medical Services, Inc. (MMSI)...,” Metro Pacific Investments Corp. (MPIC) told the Philippine Stock Exchange. MPIC President and Chief Executive Officer Jose Ma. K. Lim and MPHHI President and Chief Executive Officer Augusto P. Palisoc, Jr. will sit on the hospital’s board. Manila Doctors Hospital, a 300-bed tertiary hospital in Ermita, Manila, generates around P2 billion in annual revenues. “[MDH] is in the midst of an expansion program where it is constructing a new 18-storey building that will house new doctors’ clinics, patient rooms, outpatient diagnostic services, and additional parking facilities,” the disclosure read.

FDA approves first anti-dengue vaccine in Asia Inter Aksyon 22nd Dec 2015
The Food and Drug Administration (FDA) has granted marketing approval to Dengvaxia (trademark), making it the first vaccine to be licensed for dengue prevention in Asia, Sanofi Pasteur announced Wednesday. In a statement, Sanofi Pasteur said the drug is a tetravalent dengue vaccine, meaning it prevents disease caused by all four dengue types in individuals aged 9-45 years old living in endemic areas. The prefix tetra means four.

Free anti-rabies shots to be provided by DOH nationwide in 2016 Philippine Daily Inquirer 6th Jan 2016
The Department of Health (DOH) has announced that it is providing free vaccines against the deadly infection in all the animal bite treatment centers across the country this year in a bid to stamp out human rabies that caused the deaths of more than 220 people in 2015. In a press briefing late Monday, Health Secretary Janette Garin said the full course of post-exposure prophylaxis equivalent to eight doses of anti-rabies vaccines would be administered free of charge to those seeking emergency treatment for animal bites.

The City at the Heart of the Philippines’s HIV Epidemic The Atlantic 5th Jan 2016
New infections in the country have skyrocketed, even as they’re declining worldwide. Cebu City, one of the hardest-hit areas, is struggling to control the drug use that’s spreading the virus. In October, the DOH reported a total of 29,079 HIV infections in the country. More than 24,000 of those cases were detected in just the last five years. At this current rate, the DOH predicts that the number of HIV infections in the Philippines could reach 133,000 by 2022.

1.07 million students to get dengue vaccine – DOH Rappler 5th Jan 2016
More than 1 million Filipino children in 3 regions with high incidence of dengue will be among the first recipients of anti-dengue vaccine in the country, the Department of Health (DOH) said. Health Secretary Janette Garin said President Benigno Aquino III has approved the provision of dengue vaccine to 1,077,623 9-year-old Filipino children who are currently enrolled in government schools in the National Capital Region, Region III (Central Luzon), and Region IV-A (Calabarzon). The funds for the purchase of the vaccine will be sourced from sin tax revenues. The Philippines is part of a 20-year trial for the vaccine. Three phases of the clinical trial were conducted in the country.

Poe urges gov’t to work double time to achieve Millenium Development Goals Manila Bulletin 4th Jan 2016
The Philippines should work doubly hard to achieve the new goals set by the United Nations, which includes achieving food security, ensuring healthy lives and promoting inclusive growth since it failed to meet most of the Millenium Development Goals by the end of 2015, presidential aspirant Sen. Grace Poe-Llamanzares said. Among the social programs the government should start institutionalizing, Poe said must be its nutrition and maternal and child care programs in order to meet the Sustainable Development Goals (SDGs), which call for a more focused development agenda.

State think-tank scores PhilHealth for inefficient payment scheme The Philippine Star 3rd Jan 2016
A government think-tank is urging the Philippine Health Insurance Corp. (PhilHealth) to replace its inefficient and outmoded case-based payment (CBP) scheme. In a study, the Philippine Institute for Development Studies (PIDS) said the CBP works as a retrospective payment mechanism where hospitals are reimbursed a given amount after filing a claim for a given case, with reimbursement time spanning within four to five months. Hilton Lam, author of the study, noted that the CBP scheme resulted in an increase of out-of-pocket expense for the members.

DOH fights dengue outbreak; improves immunization system Manila Bulletin 27th Dec 2015
Health is wealth and for the country, public health is definitely wealth of resources. That is the tune that keeps the Department of Health (DOH) under Secretary Janette Loreto-Garin marching on. In a recent interview with the Manila Bulletin, Garin said the department had achieved many things and each health issue was “of equal importance.” To observers, though, dengue was a major issue in 2015 with provincial governments finally proclaiming a state of calamity in two areas and serious outbreaks in others. Two other health issues that the DOH faced in 2015 were the rising cases of human immunodeficiency virus (HIV)–5,901 in the first eight months of the year; and the entry of the Middle East Respiratory Syndrome-Coronavirus (MERS-CoV).

Philippines licenses dengue vaccine, but usage on hold SciDev.Net 26th Dec 2015
The Philippines has become the first country in Asia to license the world’s first vaccine for dengue prevention. But it may take some time before the vaccine will actually be used widely. The country’s Food and Drug Administration approved on 23 December a tetravalent vaccine called Dengvaxia to fight the four separate strains of dengue that have defied preventive control for so long.

Philippines first Asian country to clear dengue vaccine Rappler 23rd Dec 2015
The Philippines became the first Asian country on Tuesday, December 22, to approve the sale of the world's first-ever dengue vaccine. Dengvaxia, manufactured by French pharmaceutical giant Sanofi, secured its first regulatory approval in Mexico a fortnight ago and is currently being reviewed by around 20 countries in Asia and Latin America. It is hoped the drug could eventually help prevent millions of deaths from dengue, the world's fastest-growing mosquito-borne disease.

Globe to keep Bayan brand while ensuring its service is ‘topnotch’ Business Mirror 4th Jan 2016
Mobile telecommunications provider Globe Telecom Inc. is aiming to build a “better and stronger” company out of Bayan Telecommunications Inc., with the latter likely keeping its brand for the next few years until the demand for a rebranding arises. Globe President Ernest L. Cu said his company does not have any plan of building a separate mobile brand for Bayan, as such prospect is “too expensive.” For now, he noted, the company will keep the Bayan brand, until a need sprouts out to rebrand.

Creation of ICT department to benefit Cebu’s economy The Philippine Star 29th Dec 2015
The proposed creation of the Department of Information and Communications Technology (DICT) will be beneficial for Cebu given ICT as one of its growing sectors, an official from Cebu Chamber said. Melanie Ng, vice president for business development of Cebu Chamber of Commerce and Industry, said creating an agency that will focus on the ICT industry should be a good move by the government. Earlier, several business groups urged the government to enact a law that will create the DICT. The Senate and House of Representatives already passed the bill pushing for the DICT creation. The bill now awaits President Aquino's signature for it to become a law.

DOST launches int’l ICT business incubation, startup hub in Palawan Manila Bulletin 28th Dec 2015
The Department of Science and Technology (DOST), in collaboration with Palawan State University (PSU), Palaweño ICT Association (PICTA), and Make a Difference (MAD) Industries of Malaysia, launched the Philippines’ first international ICT business incubator in December 2015. The incubator is located on the main campus of Palawan State University in Puerto Princesa City. DOST-MIMAROPA (Misamis Oriental and Occidental, Marinduque, Romblon, and Palawan) said the incubator will serve as a hub for local “technopreneurs” to help them develop their tech-relevant ideas into world-class products.

IN PNOY'S HANDS | Sign DICT bill before yearend, House panel head urges Inter Aksyon 22nd Dec 2015
An author of the bill creating the Department of Information and Communications Technology made a pitch for President Benigno Aquino III to sign it into law before the year ends, saying the agency would provide the leadership the telecommunications sector “badly needs.” “It will help pave the way for faster Internet at cheaper cost in the country,” Tarlac Representative Susan Yap, who chairs the House committee on information and communications technology, said. The bill has been ratified by both the Senate and the House of Representatives, but has yet to be officially enrolled and transmitted to Malacanang, Majority Leader Neptali Gonzales II said. “The fate of the proposed Department of Information and Communications Technology to develop a world-class Philippine information and communications technology, thereby ensuring a better future for all Filipinos, is now in the hands of the President,” Yap said.

8 biggest tech stories in the Philippines in 2015 Tech in Asia 22nd Dec 2015
Before we turn the page to 2016, let’s take a refresher on the most talked about events of this year. From the unveiling of the Philippine startup roadmap to Telstra’s possible telco venture with San Miguel, here are the biggest tech stories in the Philippines in 2015. 8th. Philippines unveils startup roadmap, pushes for senate bill. 7th. Groupon to cut 1,100 jobs, exit 7 countries. 6th. Philippines becomes first country to create rules for tech transport services. 5th. Philippine startup is gunning to beat Uber at its own game. 4th. Filipina startup founder on the same stage as Obama and Jack Ma. 3rd. 12 of the best quotes from Jack Ma’s speech at the APEC Summit. 2nd. 8 lessons from Filipino tech billionaire and angel investor Nix Nolledo. 1st. Telstra may spend US$1 billion for Philippines telco venture, slams incumbents over ‘lousy service’.

First PPP school infrastructure project completed Official Gazette of the Republic of the Philippines 6th Jan 2016
The Department of Education (DepEd) and its private partners have completed the Public-Private Partnership (PPP) for School Infrastructure Project (PSIP) Phase I. The PSIP Phase I involved the design, financing, and construction of about 9,296 one-storey and two-storey classrooms. The project, which was the first PPP project for DepEd, aims to supplement the current program of DepEd in reducing classroom backlog. Over 400,000 students are expected to benefit from this project.

AIIB funds may be tapped for PPPs Business World 4th Jan 2016
The Philippines may secure financing from the China-led Asian Infrastructure Investment Bank (AIIB) for projects proposed for public-private partnership (PPP), the country’s national treasurer said. The administration of President Benigno S.C. Aquino III has identified 55 projects that mostly involve infrastructure for implementation under the PPP scheme. The government has thus far contracts for 12 PPP projects cumulatively worth some P217.4 billion since the third quarter of 2010.

Specifications for Centennial Water project due in Jan. Business World 3rd Jan 2016
The Public-Private Partnership (PPP) Center is to issue early in January 2016 a project specifications to qualified bidders for the P18.7-billion dam that is expected to supply more water to Metro Manila. Reginald P. Florentino, the PPP division chief handling the New Centennial Water Source-Kaliwa Dam Project, recently said that his team is finalizing the minimum performance standards and specifications (MPSS) for the project as well as a set of instructions to the prospective bidders.

Philippines' last-minute commitment highlights mistrust of China Nikkei Asian Review 3rd Jan 2016
The Philippine government on Wednesday said it will join in the China-led Asian Infrastructure Investment Bank, just in time for the year-end deadline to become a founding member. President Benigno Aquino's eleventh-hour decision highlights his mistrust of China, which is locked in a bitter territorial dispute with the Philippines over parts of the South China Sea.

Philippines to join China-backed AIIB infrastructure bank Reuters 30th Dec 2015
The Philippines, involved in a territorial dispute with Beijing in the South China Sea, is set to join the China-backed Asian Infrastructure Investment Bank, describing it as a "promising institution" that could help accelerate economic growth. The AIIB, which has become one of China's biggest foreign policy successes, has been formally established and is expected to be operational early next year. "President (Benigno) Aquino approved the recommendation of the DOF (department of finance) that the Philippines join the Asian Infrastructure Investment Bank," said presidential communication secretary Herminio Coloma.

Aerospace association confident of beating 2015 targets Business World 3rd Jan 2016
The aerospace industry is expected to have met its revenue target of almost $800 million as well as its job generation goals for 2015, with broad segments of the industry reporting solid performances.

Electronics to grow 10% in 2016 as manufacturers relocate from China Business World 3rd Jan 2016
The electronics industry is expected to post revenue growth of 10% in 2016 -- double the 5% expansion projected this year -- amid strong overseas demand and foreign companies setting up shop in the Philippines. Revenue will likely hit $27.5 billion by the end of next year, the Philippine Exporters Confederation Inc. (Philexport) said in a statement.

Semiconductor firm defers expansion of Clark facility Business World 29th Dec 2015
Phoenix Semiconductors Philippines Corp. (PSPC), the local unit of South Korea’s STS Semiconductor & Telecommunications Co. Ltd., is deferring the expansion of its manufacturing facility at the Clark Freeport Zone in Pampanga, amid a slump in demand for semiconductors. The development of the P8-billion second phase of the manufacturing facility was supposed to commence in the second half of 2015. The expansion of the facility was supposed to boost manufacturing capacity for its memory modules and chips for new customers. Despite the delay, PSPC remains in talks with potential customers, reflecting “the current wait-and-see outlook of the semiconductor industry.”

Philippines, EU to start free trade talks Business World 22nd Dec 2015
The Philippines and the European Union (EU) yesterday agreed to start negotiations for a free trade agreement (FTA) that will cover a range of issues, including elimination of customs duties and other barriers to trade, services and investments, both parties announced officially yesterday. The press statements said Trade and Industry Secretary Gregory L. Domingo and EU Trade Commissioner Cecilia Malmström had made the decision that could lead to talks taking place early next year.

‘Great demand’ seen for Mindanao-Singapore link Business World 22nd Dec 2015
The country’s leading airline Cebu Pacific Air expects “great demand” for its newly launched Davao-Singapore service and hopes to inaugurate more international routes originating from Mindanao. A marketing vice-president for Cebu Air Inc.-controlled Cebu Pacific, Candice A. Iyog, said in an interview that the new route, launched on Sunday, fits into the airline’s strategy of connecting more Philippine islands to other countries. “We’ve been planning the Davao-Singapore route for quiet some time as there is great demand from Filipinos going to Singapore,” Ms. Iyog said.