| Regional Affairs
PHL, Malaysia to allow entry of up to 3 of each other’s banks Business World 14th Mar 2016
THE BANGKO SENTRAL ng Pilipinas (BSP) and Malaysia’s central bank have agreed on the entry of up to three of each other’s lenders into each one’s markets under the framework of the Association of Southeast Asian Nations (ASEAN) Community that formally came into force on Dec. 31. In a statement, the BSP said Governor Amando M. Tetangco, Jr. yesterday signed the agreement with his counterpart, Governor Zeti Akhtar Aziz of the Bank Negara Malaysia (BNM) in Kuala Lumpur, the first such deal sealed by the Philippines with a fellow ASEAN member. Among others, the agreement provides for the entry of three qualified ASEAN banks (QABs) of one country to set up branches in the other under the principle of reciprocity and subject to the banking regulations of the host economy. These banks will be treated as subsidiaries of the parent foreign bank.
Philippines attends counter-terrorism meeting in Thailand PhilStar 2nd Mar 2016
The Philippines joined 16 other countries in a three-day counter-terrorism meeting held in Chang Mai, Thailand. The Interpol meeting in Thailand attended by 43 law enforcement and counter-terrorism officers from 16 countries addressed the emerging terrorism trends and information-sharing on foreign terrorist fighters throughout the Asia-Pacific region. “The Bangkok terror attack last August, followed by a string of incidents in France, Indonesia, Malaysia and elsewhere demonstrated the current threat posed by both individuals and terrorist networks,” head of the Interpol National Central Bureau in Thailand Police Major General Apichat Suriboonya said.
National Affairs
Bilang Pilipino-SWS Mobile Survey: More Filipinos supports SC’s decision on Poe Manila Bulletin 17th Mar 2016
More Filipinos agreed with the Supreme Court’s decision on allowing Senator Grace Poe to run as president, according to the Bilang Pilipino and Social Weather Stations (SWS) survey. In its report, SWS Mobile Survey result showed about 66 percent of the supports the SC’s decision on Poe’s qualification to run for president while 15% disagreed with the decision, 16% said that they were undecided, and the remaining 4% answered that they do not know their stand on the ruling. The Supreme Court justices voted against the Commission on Election’s resolution to disqualify Senator Grace Poe from her Presidential bid. This disqualification case started last year when the Senator’s citizenship and length of residency was questioned. However, the justices voted in favor of Poe’s presidential bid with seven stating that she is a natural-born citizen, qualified to run for Presidency.
Philippine frontrunner favors easing foreign ownership in media, utilities Yahoo! News 16th Mar 2016
Grace Poe, frontrunner in the Philippines' presidential election campaign, said on Wednesday she favored relaxing restrictions on foreign ownership in utilities and media as part of changes she would introduce in the constitution. The May 9 election is being closely watched by investors who fear the political succession could derail average economic growth of more than 6 percent a year and stall efforts to crack down on corruption made under outgoing President Benigno Aquino, who is limited to one term.
ADB offers help in funding climate change projects in Philippines PhilStar 16th Mar 2016
The Asian Development Bank (ADB) on Wednesday said that it is ready to provide funds to support the Philippines’s efforts to address the impact of climate change as well as its transition towards greater use of renewable energy. Preety Bhandari, director of the ADB Sustainable Development and Climate Change Department, said the Manila-based lender can provide not just loans but also grants through financial mechanisms like the Green Climate Fund. “The ADB and the Philippines can partner on future projects,” Bhandari said during a panel discussion at the Climate Reality Leadership Corps training in Pasay.
Comelec forms sub-committee on security concerns Manila Bulletin 15th Mar 2016
A Sub-Committee on Security Concerns was formed by the Commission on Elections (Comelec) for the May polls. Under Resolution No. 10077, the sub-committee shall conduct risk analysis, ascertain risk factors and vulnerabilities related to security issues/concerns affecting the conduct of the May 9 elections which will be used to determine Election Watchlist of Areas. To be placed under the control of the Comelec – Committee on the Ban of Firearms and Security Personnel (CBFSP), the panel will be subdivided into six clusters, namely: the Power/Road Right of Way Security Issues Cluster, Private Armed Groups Issues Cluster, Armed Threat Groups Issues Cluster, Transport/Warehouse Issues Cluster, Board of Election Inspectors/Board of Canvassers/Vote Counting Machine Security Issues Cluster, and Telecom Tower Security Issues Cluster.
Poe breaks tie with Binay to take lead in Pulse Asia poll PhilStar 15th Mar 2016
Sen. Grace Poe was the top choice among the respondents in the latest Pulse Asia survey on presidential candidates while her rivals from the Liberal Party and the United Nationalist Alliance were statistically tied for third place. According to the results of the survey, commissioned and first released by ABS-CBN, 28 percent of 2,600 respondents across the Philippines would have voted for Poe had the elections been held in the first week of March. Poe's score was up two percentage points since the Feb. 16-27 Pulse Asia Survey, where she was statistically tied with UNA bet Vice President Jejomar Binay.
A family affair The Economist 12th Mar 2016
FOR decades political instability, a boom-and-bust economy and endemic corruption earned the Philippines the moniker of the “sick man of Asia”. But during the six years that Benigno Aquino has been president the country’s prospects have markedly improved. The economy has zipped along at an average growth rate of 6% a year, while foreign investment has more than tripled, with manufacturing, agribusiness and call centres all showing particular strength. Mr Aquino, whose family, huge landowners, is not short of a bob, has made a stand against corruption, and his approval ratings are high. But presidents may serve only one term, and an election for his successor takes place on May 9th. The question is whether Mr Aquino’s successor can keep the Philippines on the upswing. Five presidential candidates want to have a go.
South China Sea Dispute Looms Over Philippine Elections The Wall Street Journal 12th Mar 2016
China’s growing assertiveness in the South China Sea is putting Philippine presidential candidates in a tricky situation, as they struggle to balance tough talk on national sovereignty with a desire to improve ties and boost trade with their country’s powerful neighbor. Chinese aggression and military superiority “shouldn’t make us surrender,” Sen. Grace Poe told The Wall Street Journal. Ms. Poe, who is roughly tied with her three main rivals in the race for the presidency according to the latest polling data, promised to invest heavily in the Philippine military, citing Singapore as her inspiration. “They only have four million people, but they are strong, they can defend themselves,” she said.
Philippine Court Clears Way for Senator Grace Poe to Run for President The New York Times 8th Mar 2016
The Supreme Court of the Philippines on Tuesday ruled that a popular senator, seen by some as likely to carry forward the policies of President Benigno S. Aquino III, is eligible to run for the presidency. Senator Grace Poe, the adopted daughter of one of the country’s most famous movie stars, has consistently ranked among the most popular of the candidates. In December, the Commission on Elections disqualified her after complaints claimed that she was a United States citizen and had not lived in the Philippines long enough to run. A statement from the Supreme Court did not provide details on the justices’ thinking in Tuesday’s decision but said the vote was 9-6 in favor of Ms. Poe.
Philippines to sustain reforms amid leadership change PhilStar 7th Mar 2016
Standard & Poor’s (S&P) and business group US-Philippines Society are optimistic key economic reforms implemented under the present administration are likely to be maintained after President Aquino steps down on June 30. S&P sovereign debt committee chair John Chambers told participants of the Philippine Business Investment Forum (PBIF) held in New York City last March 3 the next set of leaders are likely to keep the reforms implemented by the Aquino administration. “Our assumption is that change in leadership is unlikely to reverse the economic reforms in the Philippines,” Chambers said. Legislative and administrative reforms over the past six years are credited for helping the Philippines achieve economic milestones, including investment grade sovereign credit ratings and leap in the country’s rankings in various global surveys on competitiveness.
Foreign Business Community Concerned About Philippine Elections Voice of America 3rd Mar 2016
When Filipinos head to the polls in May to pick a new president, foreign business leaders in the country say they will be watching with keen interest. Members of the Joint Foreign Chambers of the Philippines expressed concern that nagging issues that have kept more multinationals from entering the country may not be immediately addressed. On Tuesday, the Chambers heard from representatives of the top five presidential candidates, who were invited to present what the group called “bold ideas” for the next decade. In the Philippines, presidential terms last six years and leaders are limited to one term.
PHL risks return to dirty money watch list Business World 2nd Mar 2016
THE PHILIPPINES is in danger of returning to the “grey list” of the Financial Action Task Force (FATF) amid reports that casinos in the country have been used to launder millions of dollars, the head of the Securities and Exchange Commission (SEC) said. On the sidelines of the Economic Journalists Association of the Philippines Induction Ceremony on Tuesday night, SEC Chair Teresita J. Herbosa confirmed that the Anti-Money Laundering Council (AMLC) has launched an investigation on a news report that $100 million in illegal funds were coursed through the country’s financial system.
World Bank lists policy notes for next president to achieve inclusive growth Manila Bulletin 2nd Mar 2016
The World Bank has seven policy notes for the successor of President Aquino to ensure an inclusive economic growth. At the fifth Arangkada Philippines Forum in Pasay City Tuesday, World Bank Poverty Reduction and Economic Management East Asia and the Pacific Lead Economist Rogier van den Brink, said the next Philippine president must focus on agriculture and small and medium enterprises (SMEs), launch reforms on rice policy, labor force, budget, increase tax revenues and promote transparency and accountability. Van den Brink noted that these recommendations will push the government to achieve inclusive growth. Inclusive growth, he stressed should be more than growth, but a resilient economic expansion with greater returns on labor.
Customs
Poe eyes more free trade pacts The Manila Times 16th Mar 2016
SENATOR Grace Poe will push for the signing of free trade agreements with other countries if she becomes President. Poe, who is running as an independent candidate, on Wednesday said her strategy will be “to sell to the world” instead of focusing on the domestic market. Noting that the country cannot win the war against poverty without enlarging the economic pie, the Philippines, according to the senator, should follow the lead of its progressive neighbors in Asia and sign more bilateral free trade agreements with other countries.
Trade department cites alternative export drivers Business World 16th Mar 2016
THE TRADE DEPARTMENT’s Export Marketing Bureau (EMB) has identified emerging sectors that should be promoted as they show high growth potential and could supplement export earnings from traditional goods and services. EMB Director Senen M. Perlada named these sectors as chemicals, activated carbon, metal components, as well as fresh and preserved fish as they show “competitive and comparative advantage” for the Philippines. “Global demand for about 70% of [the Philippines’] goods exports is falling or growing slowly,” he told participants in a forum in Pasig City yesterday.
BOC upgrades seen to support MSMEs Inquirer 15th Mar 2016
Philippine Daily Inquirer March 15th, 2016 01:17 AM The Bureau of Customs’ (BOC) modernization plan is consistent with the trade agency’s thrust to enable more micro, small and medium sized enterprises (MSMEs) to access global supply and value chains, according to Trade Secretary Adrian S. Cristobal Jr. The modernization plan was expected to bring the Philippines’ customs procedures in line with global best practices by helping ease procedures for local exporters and promoting a more level playing field. The modernization plan was thus expected to largely help “plug our local enterprises, particularly MSMEs, as part of global value chains or as direct exporters of finished goods and services in regional and global markets,” Cristobal said in a statement on Monday.
‘Aggressive’ pursuit of FTAs needed amid faltering trade Business World 15th Mar 2016
PHILIPPINE EXPORTERS need to diversify their customer base and product lines to offset declining sales to the country’s major trading partners, the Finance department’s chief economist said. “With the continuous contraction of major markets, Philippine exporters need to diversify their market base and product lines further,” Finance Undersecretary Gil S. Beltran said in an internal economic bulletin dated March 11. To broaden Philippine exporters’ access to other markets, the economist cited the need for the government to pursue more free-trade agreements (FTA) with other economies and regions.
Recto urges PNoy: Sign Customs reform law InterAksyon 14th Mar 2016
Senate President pro-tempore and re-electionist Ralph Recto on Monday urged President Benigno Aquino III to sign the Customs Modernization and Tariff Act (CMTA) into law. CMTA is a bill reforming customs and port procedures, with "a raft of measures" aimed at stamping out smuggling and other anomalies at the Bureau of Customs (BOC) by making BOC processes "simple, streamlined, transparent and fast." The bill, whose final draft both houses of Congress ratified before lawmakers began a three-month election break last month, also imposes longer imprisonment, of up to a lifetime, and higher fines, of up to P50 million, for smugglers and their coddlers in government, Recto pointed out. Section 1401 of CMTA slaps a minimum jail time of 31 days to six months or a fine of not less than P25,000 but not more than P75,000, or both, if the appraised value of the smuggled goods does not exceed P250,000.
Intermediate goods dominate global trade The Manila Times 9th Mar 2016
The freedom the Philippines enjoys in doing international trade through various free trade agreements is providing local and foreign trade players more complementation than competition. Countries engaged in international trade complement each other through exchange of intermediate goods and final goods – a reality that improves the regional value chain, Trade and Industry (DTI) Secretary Adrian Cristobal Jr. said during a trade policy forum on Wednesday. Cielito Habito, former director general of the National Economic and Development Authority (NEDA), said that more than two thirds of Philippine goods are intermediate goods for manufacturing final products.
PH Cabinet official defends online container booking system PortCalls Asia 2nd Mar 2016
Philippine Cabinet Secretary Jose Rene Almendras supported anew the implementation of the Terminal Appointment Booking System (TABS) amid growing protest from stakeholders about the system’s fees and penalties scheme. “We are not doing anything wrong (with TABS),” Almendras, who headed the Cabinet Cluster on Port Congestion in 2014 and 2015, said in a briefing on Feb 29. TABS is an electronic platform for booking containers at Manila South Harbor and Manila International Container Terminal, specifically developed to minimize road traffic and prevent container build-ups. The Manila port operators said TABS will ensure a more organized flow of containerized cargoes in and out of the terminals while providing real-time information on container status.
Implementing rules out for truck ban exemption of TABS users PortCalls Asia 2nd Mar 2016
From March 15, trucks with scheduled deliveries and pick-ups at Manila’s two international terminals under the Terminal Appointment Booking System (TABS) are exempt from the Metropolitan Manila Development Authority (MMDA) truck ban through MMDA Memorandum Circular No. 06-2016. MC 06-2016 acts as the implementing rules and regulations (IRR) for Metro Manila Council-Special Traffic Committee (MMC-STC) Resolution 1-2016 that grants trucks using TABS an exemption from the truck ban. Published on February 29, MC 06-2016 takes effect 15 days after publication.
Defense & Security
Air Force's new jets to join US-Philippines exercises PhilStar 17th Mar 2016
The Philippine Air Force's first two FA-50PH "Fighting Eagle" light-interim fighter-trainer aircraft will join this year's Balikatan, a bilateral training exercise with United States forces. "(Our) FA-50s will take part in 'Balikatan' for the first time," Air Force spokesperson Col. Enrico Canaya told state news outfit PNA on Thursday. Canaya said FA-50PH pilots will be taught airborne intercept techniques, air combat maneuvers, interdiction and close-air support by their American counterparts.
Balikatan 2016 kicks off in Palawan, Panay PhilStar 17th Mar 2016
This year’s first phase of the US-Phl Balikatan series had its soft opening yesterday with the joint launching of construction and medical engagements in Panay and Palawan. Capt. Frank Sayson, Philippine-side exercise spokesman, said five different school buildings and scores of local residents in the two islands benefited from yesterday’s shoulder-to-shoulder joint American and Filipino activities. Balikatan is an annual Philippine-US military bilateral training exercise, a signature element of the alliance focused on a variety of missions including humanitarian assistance, maritime law enforcement and environmental protection.
Japan submarine to visit Philippines Rappler 16th Mar 2016
A Japanese submarine will make a port call in the Philippines for the first time in 15 years while accompanying naval ships will visit Vietnam's Cam Ranh Bay for the first time ever, Japan's navy said. The announcement came days after China accused its Asian rival of interfering in the South China Sea. Japan, which occupied the Philippines and Vietnam during World War II, is now strengthening relations. All 3 countries share growing concerns about China's increasing military muscle amid a series of maritime disputes.
PNP launches mobile app for crime awareness Manila Bulletin 16th Mar 2016
The Philippine National Police (PNP) launched a mobile application on Wednesday, March 16, 2016, dubbed as “Bantay Krimen”, which the public can use to immediately report a crime. PNP chief, P/Dir. Gen. Ricardo C. Marquez led the launching ceremony held at the PNP headquarters in Camp Crame. Also present were Atty. Rogelio Casurao, National Police Commission (Napolcom) vice chair, P/Dir. Benjamin Magalong, head of the PNP Directorate for Investigation and Detection Management (DIDM), and students from the University of the Cordilleras (UC).
Arrival of US coast guard cutter big boost to PH Navy Update PH 14th Mar 2016
The capability of the Philippine Navy (PN) to secure the country’s vast maritime domains will get a much-needed boost with the pending arrival of USCGC Boutwell (WHEC 719), the Hamilton-class cutter earlier pledged to the PN by US President Barack Obama. The latter is the sister ship of BRP Gregorio Del Pilar (formerly the USCGC Hamilton) and BRP Ramon Alcaraz (ex-USCGC Dallar) which were decommissioned in 2011 and 2012, respectively.
Philippines Will Impound Ship Linked to North Korea The New York Times 6th Mar 2016
The Philippines will become the first country to enforce tough new United Nations sanctions on North Korea when it begins formal procedures on Monday to impound a cargo vessel linked to the reclusive nation, a government spokesman said on Sunday. The Jin Teng, which is suspected of being a North Korean ship, arrived Thursday at Subic Bay, a commercial port about 50 miles northwest of Manila. It will be impounded, its crew will be deported, and it will most likely be inspected by a team from the United Nations, said Charles Jose, a spokesman for the Philippine Department of Foreign Affairs.
China: Ships have left disputed Spratlys atoll PhilStar 3rd Mar 2016
Chinese vessels have left Quirino (Jackson) Atoll near Palawan after completing their mission to remove a grounded Filipino fishing vessel in the area, Beijing’s foreign ministry said yesterday as it reiterated China’s indisputable sovereignty over the atoll. Foreign Ministry spokesman Hong Lei said China’s Ministry of Transport had sent the vessels that Filipino fishermen said were preventing them from dropping their nets in the atoll. “To guarantee safety of navigation and of work conditions, China urged fishing vessels near the site to leave,” Hong said.
Is This the United States' Grand Plan for Responding to China in the South China Sea? The Diplomat 3rd Mar 2016
It’s certainly been an interesting week in the South China Sea, with reports that China moved coast guard vessels into Jackson Shoal, driving Filipino fishermen out and effectively asserting control over that feature. China’s latest bout of assertion comes not long after it re-stationed J-11 fighters and HQ-9 surface-to-air missile systems on Woody Island, days after ASEAN leaders met with U.S. President Barack Obama in the United States. On Wednesday, two reports caught my eye that reveal a growing coalition and network of Asian powers to counter Chinese assertiveness in Asian waters, certainly the South China Sea. Incidentally, both these reports stem from comments and observations made recently by Admiral Harry B. Harris, the outspoken head of U.S. Pacific Command, at a security conference in New Delhi, India. (Harris’ prepared remarks are available here.)
Philippine officials say China blocked access to disputed South China Sea atoll Reuters 2nd Mar 2016
China sent several ships to a disputed atoll in the South China Sea, preventing Filipino fishermen from accessing traditional fishing grounds and raising tensions in the volatile region, Philippine officials said on Wednesday. China had sent as many as seven ships to Quirino Atoll, also known as Jackson Atoll, in recent weeks, said Eugenio Bito-onon Jr, the mayor of nearby Pagasa Island in the Spratly Islands. The Spratlys are the most contested archipelago in the South China Sea, a resource-rich region and critical shipping lane linking North Asia to Europe, South Asia and the Middle East.
Economics
DOLE: 1 M jobs await new graduates PhilStar 14th Mar 2016
Over a million jobs await new graduates and other jobseekers, the Department of Labor and Employment (DOLE) maintained yesterday. “Some say there are no jobs in the country. That’s wrong. In the information technology – business process management sector alone, industry players are targeting 1.19 million direct employment this year. The sector is well poised to meet this target at the rate the IT-BPM is growing – which is faster than the national economy’s growth rate,” Labor Secretary Rosalinda Baldoz said. Human resource firms have cited a mismatch in the country between job opportunities and available skills, saying that out of every 1,000 job applicants, only 10 would likely be hired.
NEDA: More Filipinos employed in Jan 2016 Rappler 12th Mar 2016
The number of employed Filipinos increased at the start of the year, the latest Labor Force Survey (LFS) released by the Philippine Statistics Authority revealed. According to the survey, the country’s employment rate grew from 93.4% in January 2015 to 94.2% in January 2016. The figure is equivalent to about 39.2 million employed Filipinos, with an estimated 752,000 additional jobs generated in between the survey period. (READ: PH unemployment rate drops to record low 5.7%)
FDI nearly flat in 2015 Business World 11th Mar 2016
Net inflows of foreign direct investments (FDI) were nearly flat in 2015 from a year ago to fall below the government’s $6-billion target as the December print was halved, according to central bank data. FDIs, which stand as a key source of jobs and capital for the local economy, logged just $273 million in December, a sharp drop from the $561 million seen a year prior as equity investments and net placements made by offshore firms were slashed. Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed nearly all FDI components posted significant declines for December from the comparable 2014 figure.
More meetings held to assure business Business World 9th Mar 2016
THE GOVERNMENT conducted more meetings in the United States up to yesterday in its bid to sustain investor confidence through the Philippines’ leadership succession on June 30. In a statement, the government’s Investor Relations Office (IRO) said delegations led by senior government officials met with US-based asset managers from March 4 to 9 after a March 2-4 business forum in New York City. The non-deal exercise -- held to assuage concerns of policy reversal under the successor of President Benigno S. C. Aquino III who will be elected on May 9 -- was organized by international banks Citi, Credit Suisse, Deutsche Bank, HSBC, JP Morgan, Morgan Stanley, Standard Chartered Bank, and UBS, IRO said in its statement.
‘Aquino successor needs to upgrade BOI incentives’ Business Mirror 7th Mar 2016
Even the country’s top investment official is no longer convinced that the Philippines has the right incentives on the menu to attract more global investors. So for the next administration, Trade Secretary Adrian S. Cristobal Jr. said a serious upgrade in the country’s incentives regime—especially the perks being offered by the Board of Investments (BOI)—is a must. “I think in the next six years we have to change our incentives regime. There is a need to change it; Executive Order [EO] 226 [the Omnibus Investments Code], signed into law in 1987, is already becoming unresponsive to the way the world has changed,” Cristobal told the BusinessMirror.
DOF: Higher capital goods imports point to faster growth PhilStar 2nd Mar 2016
Despite lackluster global trade, capital goods imports pushed up over-all figures last year and are likely to propel economic growth in 2016, the chief economist of the Department of Finance (DOF) said. "The continued increase in imports of capital goods suggests that the country's import sector is mainly driven by capital demand rather than consumption demand," Finance Undersecretary Gil Beltran said in an economic bulletin. "This signifies that imports boost continuing expansion of productive capacity and signal robust economic growth ahead," he said last Tuesday.
Philippines capable of double-digit growth – IMF PhilStar 2nd Mar 2016
The International Monetary Fund (IMF) expects the Philippines to post double-digit economic growth amid a steady improvement in public investment efficiency over the next 15 years. In a report, IMF economist Takuji Komatsuzaki said the improvement in public investment efficiency generates substantial additional benefits particularly through higher gross domestic product (GDP) growth. “Assuming half of the inefficiency is eliminated in five years, the increase in real GDP after 15 years is nine percent to 11 percent,” Komatsuzaki said. The IMF considered two scenarios in the working paper including a permanent increase in public investment by two percent of GDP financed by borrowing as well as the same increase in public investment financed by higher taxes.
Energy
BOI approves P171-billion worth of renewable energy projects Business World 11th Mar 2016
THE Board of Investments (BoI) has approved up to 144 renewable energy investment projects worth P170.9 billion for five years ending in December 2015, adding generating capacity of 3,861 megawatts (MW). “Our industry development programs are geared towards building sustainable and resilient communities, which includes achieving sustainable energy sources,” said Ceferino S. Rodolfo, Trade undersecretary for industry development, in a statement yesterday. Of the renewable energy projects, hydropower plants accounted for the biggest portion at 45 followed by solar projects at 40. Biomass, geothermal and wind technologies made up 29, 15 and 15 projects, respectively. The country has yet to record a project using ocean technology.
Lower Meralco bill expected for March Business World 9th Mar 2016
In a statement yesterday, the country’s largest distribution utility said the overall rates for households in March will be lower by 19 centavos per kilowatt-hour (kWh) compared to February. “The decrease in the overall rates was primarily due to the generation charge,” Meralco said. Households consuming 200 kWh, which comprise around 75% of Meralco’s customers, will see a bill reduction of P38.01. Those consuming an average of 300 kWh, 400 kWh and 500 kWh will see drops of P57.03, P76.03 and P95.04, respectively.
German firms to train PH in solar energy dev’t Inquirer 8th Mar 2016
NOTING the Philippines’ huge potential for renewable energy development, particularly solar power, German experts have started a new round of training for Philippine developers on increasing renewable energy contribution to the country’s total energy mix. The training programs are organized by the German enterprise Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. Program coordinator Markus Dietrich said the level of understanding of renewable energy in general and solar power in particular had increased but further training was needed given the relatively young Philippine energy market, which has to contend with surging power demand.
Korean investors keen on infrastructure, energy projects in PH GOVPH 3rd Mar 2016
Board of Investments (BOI) Managing Head Dr. Ceferino Rodolfo welcomed a Korean delegation of business men in the country recently (February 22-24, 2016). Ambassador Kim Young -Sun, Secretary-General of the Asean Korea Centre (AKC) led a delegation of 14 Korean companies keen on investing on infrastructure and energy projects in the Philippines. “The Philippine economy is ripe for foreign investments,” said Rodolfo. He said that now is the best time for foreign investors to invest in the Philippines as the country continues to experience growth and stability. According to Undersecretary Rodolfo, the government’s expenditure on infrastructure contributes significantly to economic growth. Philippine infrastructure spending has increased from 1.8 percent of GDP in 2010 to 4.1 percent of GDP in 2015. “The upward trend of GDP growth presents tremendous opportunities for further investments in infrastructure,” he said. Philippine gross domestic product (GDP) has been experiencing a 6.2 percent growth rate in the past five years, the fastest since 1970s. This year, the government is targeting GDP growth between 6 to 7 percent.
ADB backs US$226 million climate bond deal for Philippine-based energy project Asia Asset Management 3rd Mar 2016
The Asian Development Bank (ADB) has backed the issuance of a maiden climate bond in Asia Pacific, providing credit enhancement to the Philippine-based firm AP Renewables Inc (APRI) – a subsidiary of Aboitiz Power Corporation (AboitizPower) – for the Tiwi and Makiling-Banahaw (Tiwi-MakBan) geothermal energy facilities. The local currency bond worth 10.7 billion Philippine pesos (PHP) (US$226.55 million) comes in addition to a direct ADB loan of 1.8 billion PHP. The ADB’s credit enhancement comes in the form of a guarantee of 75% of principal and interest on the bond, and will be risk-participated by the Credit Guarantee and Investment Facility, the ADB said in a statement on February 29.
Cadiz solar plant inauguration today Daily Star 3rd Mar 2016
Gov. Alfredo Marañon Jr. yesterday said the 132.5-megawatt solar plant in Cadiz City, to be inaugurated today, has further boosted Negros Occidental's ability to draw investors and made the province an exporter of power. French Ambassador to the Philippines Thierry Mathou, who has promised to bring agriculture investors to Negros Occidental, is expected at the inaugural rites. The Cadiz solar farm is the biggest in Southeast Asia and the seventh largest in the world, the governor said.
Financial Services
Philippines still safe from FATF blacklist PhilStar 16th Mar 2016
The Philippines is safe for now from getting blacklisted by the global body on anti-money laundering and terrorist financing even as policymakers scramble to trace and retrieve $81 million in funds sent to the country. The Financial Action Task Force (FATF), in an e-mail to The STAR, stressed the country would need to enact further reforms to cover casinos as reporting bodies left out in amendments passed in 2012. “In June 2013, the FATF determined that the Philippines had made significant progress in improving its AML/CFT (anti-money laundering/countering financing terrorism) and noted the Philippines had established the legal and regulatory framework to meet its commitments in its FATF Action Plan,” the agency said.
Anti-financial crime arm in BAP eyed Inquirer 16th Mar 2016
The outgoing head of the Bankers Association of the Philippines (BAP), whose bank is now embroiled in alleged money laundering, on Monday sought the creation of an anti-financial crime committee within the industry group whose members include the top executives of the country’s biggest lenders. After three consecutive terms as BAP president, Rizal Commercial Banking Corp. (RCBC) president and chief executive Lorenzo V. Tan turned over the position to his elder brother, Nestor, who is the president and chief executive of BDO Unibank Inc., the biggest bank in the country.
BSP adopts agriculture financing framework The Manila Times 16th Mar 2016
To grow the agriculture and fisheries sector, monetary authorities approved a value chain financing framework to improve the stakeholders’ access to finance. Despite the impact of agriculture and fisheries sectors on the Philippine economy, obtaining credit remains a challenge, the central bank said in a statement Wednesday. The lack of access to finance places smallholder farmers at a disadvantage that stymie their integration into higher value markets.
CDA, BSP prepare implementing rules for Credit Surety Fund Cooperative Act Business Mirror 16th Mar 2016
The Cooperative Development Authority (CDA) and the Bangko Sentral ng Pilipinas (BSP) are jointly crafting the implementing rules and regulations (IRR) for the new Credit Surety Fund Cooperative Act of 2015, which that will provide collateral for loans contracted by cooperatives to increase their productivity. CDA Chairman Orlando Ravanera told the BusinessMirror the IRR will be finished in two months. This will allow cooperatives to borrow capital from the formal banking system with the fund acting as a surety to ensure payment to the creditor banks in case of default by the debtor-cooperative.
AMLAC wants casinos covered by law Manila Bulletin 15th Mar 2016
The influential Anti-Money Laundering Council (AMLAC) urged Congress yesterday to plug the loopholes in the existing law by enacting amendments to include casinos and real estate agents among monitored institutions under the scope of the law. In a statement read yesterday before the Senate blue ribbon committee investigating alleged money laundering through a local bank, Insurance Commissioner Emmanuel F. Dooc, who is also a member of the board of AMLAC, put the blame on the casinos over the $81 million stolen funds from the Bangladesh Bank that were successfully laundered in the local financial system.
Philippines and Malaysia Sign Agreement on Entry of Banks under ABIF Bangko Sentral Ng Pilipinas 14th Mar 2016
The Bangko Sentral ng Pilipinas (BSP) and Bank Negara Malaysia (BNM) have agreed on the guidelines regarding the entry of Qualified ASEAN Banks (QABs) between the two countries. This is in line with strengthening intra-regional trade and investments under the ASEAN Banking Integration Framework (ABIF). The guidelines are contained in the Heads of Agreement (HoA) signed by BSP Governor Amando M. Tetangco, Jr. and Bank Negara Malaysia (BNM) Governor Zeti Akhtar Aziz in Kuala Lumpur on March 14. The BSP-BNM HoA is one of the first bilateral agreements to be signed under ABIF and marks a milestone within the broader ASEAN community. While the HoA outlines market access and operational flexibilities that may be accorded to QABs from each jurisdiction into the other, these QABs shall operate under the prevailing laws and regulations in the Philippines and Malaysia, respectively.
PH, Peru partner in improving credit access Manila Bulletin 14th Mar 2016
The Philippines has partnered with Peru in improving credit access in the Asia Pacific by sharing knowledge and experience in implementing best practices in an international workshop it is hosting. The ‘Conference on Credit Infrastructure’ held in Makati has been organized under the Financial Infrastructure Development Network (FIDN) initiative of the APEC Cebu Action Plan (CAP), developed during the Philippines’ APEC chairmanship in 2015. “Peru, in its chairmanship this year of the APEC Finance Ministers’ Process, has committed to driving implementation of the Cebu Action Plan’s initiative,” Finance Secretary Cesar Purisima said.
Philippines: Total premium forecast for 2016 lowered marginally Asia Insurance Review 9th Mar 2016
Total premiums in the Philippine insurance industry will likely hit PHP280 billion (US$5.9 billion) this year, marginally lower than the PHP300 billion originally forecast. Insurance Commissioner Emmanuel Dooc told Business World that he would like to adopt PHP280 billion as the forecast volume because it stands at the lower end of a targeted range. In January, he said that he believed PHP300 billion was achievable this year.
BSP eases rules on foreign loans Business World 4th Mar 2016
The government has made it easier for private companies to tap foreign loans by relaxing rules on their documentation, the Bangko Sentral ng Pilipinas (BSP) said in a statement on Friday. Specifically, the BSP said its policy-making Monetary Board has lifted the prohibition on notarization of documents for foreign loans, deferred payment and other foreign currency-denominated obligations that private companies tap in order to help them comply with offshore regulations. “Previously, such documents for both the public and private sectors were prohibited from being notarized,” the BSP said in a statement, explaining: “The move is part of continuing efforts to have an appropriate regulatory framework for foreign exchange transactions.”
Philippines sees growth in microinsurance products Business World 3rd Mar 2016
Increased product awareness and sustained economic expansion are fueling double-digit growth in the Philippine insurance sector, as the emergence of microinsurance products helps boost penetration rates and premiums. The industry posted a record performance in 2015, as total premium income rose by 18.2% to reach P233 billion, according to the sector regulator, the Insurance Commission (IC).
SE Asia Stocks-Singapore, Philippine lead gains on upbeat regionals Reuters 2nd Mar 2016
Southeast Asian stock markets rose on Wednesday, with Singapore and the Philippines climbing 2 percent each, as global risk sentiment improved with stronger oil market and investors sought for bargains in battered shares in key sectors such as banks. The key Straits Times Index traded up 1.95 percent, led by a 3.1 percent rally in shares of DBS Group Holdings , the most actively traded by turnover. Nomura's ASEAN banks strategists said most ASEAN banks were attractively priced, with DBS its top pick among Singapore banks. Singapore banks fell 2 percent last month on concerns over the costs related to a China slowdown and the fall in commodity prices.
Food & Agriculture
Philippines signs new GMO rules, food industry relieved Reuters 8th Mar 2016
The Philippines has approved a new set of rules on genetically modified organisms after a top court demanded an overhaul of previous regulations, providing relief to farmers and importers worried that any delay would spark a food crisis. The five ministers that needed to sign the rules had done so as of Monday, Merle Palacpac, chief of the plant quarantine service at the Bureau of Plant Industry, told Reuters. The new rules will now be forwarded to the Department of Agriculture, with Palacpac saying they would likely take effect by April.
Newcastle disease kills 109,255 chickens in Philippines Gulf News Philippines 7th Mar 2016
An outbreak of the deadly Newcastle disease has killed tens of thousands of chickens in the Philippines, a senior official said. A total of 109,255 chickens had died in the northern region as of February 29, said Dr Annie Bares, head of the agriculture department’s field operations division. The virus has been reported on poultry farms in 25 municipalities in northern Luzon. The number of cases could further increase as of March, Bares said, adding the virus has already affected farms in 14 municipalities each in Ilocos Norte and Ilocos Sur. The disease has also been detected in 17 municipalities in La Union and 20 in Pangasinan.
Mindanao fishery sector needs funding for export Philstar 7th Mar 2016
Amid slumping exports, fishing firms in South Central Mindanao may soon retrench workers unless funding needs to boost product quality and processing capacities are addressed, the Philippine Exporters Confederation (Philexport) has warned. “Most of these companies have either retrenched workers, applied work rotation schedules or laid off workers,” said Philexport Region 12 executive director Ismael Salih Jr. At present, there are a total fo 300,000 workers in fishing and marine manufacturing industry in the region. Salih said this figure does not include “indirect employees”—for which he did not provide data-- who may also get affected once the situation worsens.
PH must strive to be 'aquaculture superpower': Pangilinan Interaksyon 3rd Mar 2016
To uplift the lives of the poorest sector in Philippine society, senatorial candidate Francis “Kiko” Pangilinan proposed the creation of the Department of Fisheries and Aquatic Resources to be tasked with strategically developing the country’s marine resources. “Other countries such as Brazil and Canada have a Department of Fisheries. In order for progress to take root, we need a Cabinet rank official who will take charge of fisheries and our aquatic resources. One-fifth of our national territory is land, but four-fifths is water,” said the former Presidential Assistant for Food Security and Agricultural Modernization (PAFSAM) in a dialogue with the fisherfolk in Tandag City, Surigao del Sur.
Grain of truth: Making rice greener CNBC 3rd Mar 2016
Rice is one of the world's most important staples, with billions of people basing their meals around it. But as the world's population grows, the amount of resources needed to produce the food is growing as well. Demand for crops such as rice, wheat and maize is set to increase by 33 percent by 2050, according to the Food and Agriculture Organisation (FAO) of the United Nations.
DA launches 5-yr map for animal industry Manila Times 3rd Mar 2016
THE Department of Agriculture (DA) has launched its five-year development plan and strategic map for the animal industry to ensure continuity of growth and global competitiveness in the sector. During the Bureau of Animal Industry’s 86th founding anniversary, Agriculture Undersecretary and chief of staff Dennis Guerrero said that the development plan will set the organizational directions that the bureau will pursue, while the strategic map sets out the bureau’s 10 priority programs to uplift the livestock sector to becoming a world-class and sustainable industry.
Health & Life Sciences
483 of 1,044 pass doctors’ exams PhilStar 17th Mar 2016
A total of 483 out of 1,044 examinees passed the physician licensure exam given by the Board of Medicine in Manila, Baguio and Cebu this month, the Professional Regulation Commission (PRC) announced yesterday. The results were released only two working days from the last day of examination. The members of the Board of Medicine who gave the licensure examination are Dr. Miguel Noche Jr., chairman; and Doctors Edgardo Fernando, Eleanor Almoro, Eleanor Galvez, Ma. Graciela Garayblas-Gonzaga and Clarita C. Maaño, members.
Philippines steps up measures to combat Zika virus Channel NewsAsia 14th Mar 2016
The Philippines has launched an action plan to combat the spread of the Zika virus, Philippine Health Secretary Janette Garin told reporters on Monday (Mar 14), playing down concerns about the mosquito-borne illness. Although there is no vaccine to prevent Zika infections, Mr Garin said the Philippines was stepping up its efforts to fight the virus, including surveillance, clinical management, vector control, and health promotion. Just a week ago, the Philippines discovered its first case in four years, after an American woman who visited the Philippines in January tested positive for the virus in the US. The health secretary urged the public to take extra precautions when travelling to countries affected by the virus. Most infections in recent months have originated in South and Central America.
Leveraging conditional cash transfers for universal health coverage Rappler 7th Mar 2016
Conditional cash transfers (CCT) are a stepping stone to universal health coverage, not just help for individual families. ADB recently approved a $400 million loan for the Philippine government to expand the CCT program, which started in 2008 and has since expanded to become the third largest such program in the world after Mexico and Colombia, covering more than 4.4 million poor households in under a decade.
First case of Zika virus detected in Philippines since 2012 Medical Press 6th Mar 2016
An American woman was infected with the Zika virus while visiting the Philippines, health department officials said Sunday, the first case detected in the country for several years. Health Secretary Janette Garin said the US Centers for Disease Control and Prevention (US-CDC) had informed her that a US resident who stayed in the Philippines for four weeks in January had apparently developed symptoms in her last week before returning to America. "We were informed that shortly after returning home to the US, an evidence of Zika virus infection was detected from the patient," Garin said in a statement.
UN, WHO: Reproductive health in the Philippines lags behind ASEAN neighbors CNN 5th Mar 2016
The state of sexual and reproductive health (SRH) in the Philippines has been lagging in Southeast Asia, the World Health Organization (WHO) said Friday (March 4). With a population of 104 million, 28 percent or one in four pregnancies in the Philippines is unwanted. Almost two out of three Filipinas are not using any form of birth control, and one in four women get pregnant within a year because they prefer using traditional over modern contraception.
Graphic health warning law takes effect today PhilStar 3rd Mar 2016
Starting today, local and imported cigarettes shall be contained in packaging with graphic health warnings or photographs showing the health risks of smoking. Health Secretary Janette Garin said the green light is on for the initial implementation of the Graphic Health Warning Law, which requires tobacco companies to print 12 graphic health warning templates on cigarette packages. “What is expected of the graphic health warning is to convey the visual message – that this can happen to you if you continue smoking,” Garin said.
ICT
IT-BPM industry projects $25-billion revenues in 2016 as it prepares new 6-year road map Business Mirror 15th Mar 2016
The information technology and business-process management (IT-BPM) industry sees rapid and sustained growth and is on track to hit $25 billion in revenues this year, according to the Information Technology and Business Process Association of the Philippines (Ibpap). Jose Mari Mercado, Ibpap head, told reporters that, while revenues for 2015 has yet to come in, the industry forecast of $22 billion for the year is attainable. “If we hit the $22-billion guidance for 2015, the industry is on track to hit the $25-billion goal for 2016, because that’s just a 14-percent increase. We have been posting that kind of growth in recent years,” Mercado said. Ranked second to overseas Filipino workers’ remittances in contribution to the GDP, the IT-BPM sector’s revenues surged to $18.9 billion in 2014, from $8.9 billion in 2010.
TECHNOLOGY TO BOOST PH TRADE COMPETITIVENESS Malaya 14th Mar 2016
The Department of Trade and Industry (DTI) sees the use of technology in Customs modernization improving the competitiveness of the Philippines in trading across borders and benefiting small businesses in the country. “The use of technology solutions to ease documentation and customs procedures will allow our exporters to expeditiously move goods across borders and to capitalize on the growing benefits of our trade engagements,” said Adrian Cristobal Jr., DTI secretary. The Bureau of Customs (BOC) recently launched a series of information technology projects in preparation for the passage of the Customs Modernization and Tariff Act (CMTA).
Philippines pitches business start-ups to US for financial aid The Filipino Times 14th Mar 2016
The Philippine government has pitched several indigenous start-ups to the US officials and American multinationals for financial assistance. The start-ups, which are expected to reach 500 small and medium enterprises (SMEs), require an estimated $200 million, but the combined valuation is likely to reach $2 billion by 2020, reported Manila Bulletin. The Department of Trade and Industry reportedly submitted this proposal during the High-Level Public Private Policy Dialogue on Startups and Innovation with the US delegation led by US Ambassador David Thorne, senior advisor of the US State Department, and influencers including Mike Cassidy of the Google Loon Project; Deborah Magid of IBM Venture Capital Group; Manny Ayala of Endeavor Philippines; J.V. Emmanuel de Dios of GE Philippines; Jason Fischer of UL; and Sheel Tyle of New Enterprise Associates.
Philippines to outline concrete policies for startups by June Tech in Asia 11th Mar 2016
The Philippines wants to draft by June a concrete action plan containing mainly laws and policies so startups would thrive in the country. Which is why last night the Trade Department held a closed-door dialogue with stakeholders to identify barriers to startup growth. The first of what’s expected to be a series of consultations was led by trade secretary Adrian Cristobal Jr. and attended by senator Paolo “Bam” Aquino, Filipino startups, as well as a US delegation of multinational companies led by American businessman and ambassador David Thorne.
DOST project to narrow digital divide in PH The Manila Times 8th Mar 2016
The 2016 national elections are coming and the clamor for making the “right” choices is steadily rising. In the Philippines, taking a swing at politicians for not delivering on promises once elected is just as common as pinning the blame on the nearest voter for not making the expected “wise” vote. Pointing the finger at the urban and rural poor for making the “uneducated vote” has become a common malpractice among the average Filipino over the years. In fact, just last year, discussions about not allowing non-tax payers to vote flared up after a recommendation from a well-known political figure was reinterpreted and misquoted over and over through different social media sites.
IT firm: Hackers spreading ‘kidnap’ virus on phones PhilStar 3rd Mar 2016
Global Internet security provider Kaspersky Lab warned that cyber-criminals are now into mobile device kidnapping or “ransomware,” a virus that locks a phone until the owner pays a demanded amount. In its annual Mobile Virusology report, Kaspersky Lab noted that ransom cases skyrocketed in 2015 especially in Russia, Germany and Kazakhstan. Last year, at least 94,344 mobile devices were attacked, making the owners unable to use their gadgets unless they paid between $12 and $100.
GrabBike operating illegally – LTFRB The Manila Times 2nd Mar 2016
The Land Transportation Franchising and Regulatory Board (LTFRB) arrested a GrabBike driver in a sting operation to prove that the company continues to operate despite a cease and desist order issued by the board on January 27. The LTFRB said that GrabBike is not authorized to offer bikes and motorcycles as a public utility vehicle but the service is being promoted on social media. Chairman Winston Ginez booked a ride through his phone and apprehended GrabBike’s driver in the transport agency’s office.
Tech sector needs 1.2-M employees The Manila Times 14th Mar 2016
The Information Technology-Business Processing Management (IT-BPM) sector is in need of 1.19 million new employees for this year alone, according to the Department of Labor and Employment (DOLE). DOLE Secretary Rosalinda Baldoz herself has strongly urged graduating students and other first-time job seekers, including low- and semi-skilled returnee-OFWs (overseas Filipino workers), to join the IT-BPM sector. She cited average pay in the sector that is higher than entry-level wages and experience that the prospective employees would gain and chance to plan their careers.
Infrastructure
Beyond peace, infrastructure key to drawing investment to ARMM Business World 13th Mar 2016
Business groups in the Autonomous Region in Muslim Mindanao (ARMM), in a meeting with Swiss officials led by Ambassador to the Philippines Andrea Reichlin last week, emphasized the need for infrastructure development alongside sustaining peace to attract more investment in the region. The meeting, held at the ARMM-Regional Board of Investments (RBOI) office in Cotabato City, was attended by representatives of the Metro Cotabato Chamber of Commerce and Industry, Muslim Chamber of Commerce and Industry of Kutawato, and the Bangsamoro Business Club, led by the Promotion of Investment Sustainability Organization (PISO), which has members from the private sector as well as government representatives. Edgar L. Bullecer, co-lead convenor of PISO, told BusinessWorld it is about time that foreign companies took notice of the investment potentials of the region.
P-Noy inks law easing right-of-way process PhilStar 11th Mar 2016
President Aquino has signed a law covering procedures for the acquisition of right-of-way (ROW) for infrastructure projects of the government. Under Republic Act 10752 or An Act Facilitating the Acquisition of ROW Site or Location for National Government Infrastructure Projects signed on March 7 and published yesterday, owners of private property taken for public use would be given just compensation. “The State shall ensure that owners or real property acquired for national government infrastructure projects are promptly paid just compensation for the expeditious acquisition of the required ROW for the projects,” the law stated.
Manila Outsourcing Boom Spurs Most Offices in Quarter Century Bloomberg 14th Mar 2016
Philippine builders are adding the most office space in Manila in at least 26 years, catering to companies such as American Express Co. and International Business Machines Corp. that are outsourcing more jobs to the Southeast Asian nation. About 710,000 square meters (7.6 million square feet) of office space will be built in the Philippine capital this year and more than 780,000 square meters in 2017, broker Colliers International estimates. Each is a record for work space built in a year, and combined represents a fifth of the stock at the end of 2015, according to the broker’s data stretching back to 1990.
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