| Regional Affairs
Philippines backs G7 call implementation of sea code of conduct PhilStar 13th Apr 2016
The Philippines on Tuesday expressed its support for the Group of Seven (G7) industrialized countries' statement calling for the full implementation of the Declaration on the Conduct of Parties (DOC) in the South China Sea. Foreign ministers of the G7—composed of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States—and the high representative of the European Union recently released a joint statement on maritime security.
Business optimism in PHL above Asean average, survey shows Business Mirror 13th Apr 2016
Global firms’ business optimism in the Philippines for the first quarter of the year is higher than the average Asean rate, a global business survey show. Grant Thornton’s International Business Report (IBR), a global business survey of 2,500 businesses in 36 economies, showed that business optimism in the Philippines is at 56 percent, higher than Asean’s 45.7 percent.
ADB climate-change financing bulking up in 4 years Business Mirror 13th Apr 2016
The Asian Development Bank (ADB) is encouraged to focus on financing climate change-related efforts to build resilience among developing member-countries (DMCs), like the Philippines. In the Annual Evaluation Review (AER) report of the Independent Evaluation at ADB, the Manila-based multilateral lender is encouraged to finance efforts that addresses environment and infrastructure concerns in the region to help cope with climate change.
National Affairs
Santiago resumes campaign after long break CNN Philippines 13th Apr 2016
After almost six weeks off from the campaign scene, presidential candidate Sen. Miriam Defensor-Santiago returns. Although the senator looked like she has lost weight, she said she is feeling better, and that the anti-cancer pill she is taking works. It's a homecoming for Santiago. She graduated from University of the Philippines Visayas as magna cum laude. Students and supporters cheered for her when she delivered her usual pickup lines.
Duterte gains solo lead in ABS-CBN poll Rappler 12th Apr 2016
Davao City Mayor Rodrigo Duterte gained the solo lead in an ABS-CBN survey on presidential aspirants released on Tuesday, April 12. The survey, conducted by Pulse Asia Research, Incorporated from March 29 to April 3, showed Duterte with a voter preference rating of 30% – 6-percentage points higher than his 24% rating in the March 15-20 ABS-CBN poll. Poe was second with 25%, a 3-percentage point drop from her previous rating, while Vice President Jejomar Binay and administration standard-bearer Manuel "Mar" Roxas II were statistically tied at third place with 20% and 19%, respectively.
Duterte, Marcos take sole leads in latest SWS poll CNN Philippines 11th Apr 2016
Davao City Mayor Rodrigo Duterte took the sole lead in a recent presidential survey by Social Weather Stations (SWS). The results first published in BusinessWorld revealed that 27 percent of respondents supported Duterte. Although poll had an error margin of + 3 percent, Duterte's lead was wide enough to prevent a statistical tie. "The new SWS survey affirms the other surveys that has Duterte on the clear lead in the presidential race," Duterte's spokesman Peter Laviña said.
Cebu, Bohol under state of calamity due to El Niño Rappler 11th Apr 2016
The province of Cebu declared a state of calamity on Monday, April 11, due to the dry spell. El Niño has caused water sources to dry up in the province. Cebu City had already declared a state of calamity last week. Last May 2015, the province had already declared a state of calamity for the same reason. Provincial board member Grecilda "Gigi" Sanchez said, however, the declaration lapses after 6 months. "There is a need to declare again, because that declaration is only good for 6 months," Sanchez said in Cebuano.
Is Comelec liable for website data leak? Rappler 11th Apr 2016
The recent hacking of the Commission on Elections (Comelec) website has led to a data leak of millions of voter registration records in what can be considered the biggest leak of personal data in Philippine history. The hackers have clearly violated cybersecurity and election laws and the Cybercrime Division of the National Bureau of Investigation (NBI) is already investigating the incident. A data privacy lawyer believes that concerned Comelec officials are also liable for failing to secure the data from hackers. However, a lawyer who used to work at the poll body said the nature of the leaked data should be determined first before ascertaining liability.
The presidential choices of Corporate Philippines Manila Bulletin 10th Apr 2016
In choosing the country’s next president, CEOs, top executives, and business owners of enterprises with sales north of 100 million pesos have different points of view than those of the general public. While the majority of the electorate may be swayed by propaganda and name recall, the choices of “Corporate Philippines” are better thought out given their exposure to global politics, international trade and for some, personal dealings with the candidates themselves.
Customs
DTI launches consultation drive on RCEP, AHKFTA Business Mirror 13th Apr 2016
The Department of Trade and Industry (DTI) kicked off a series of private- and public-sector consultations on Wednesday to raise awareness on two regional trade partnerships—the Regional Comprehensive Economic Partnership (RCEP) and the Asean-Hong Kong Free Trade Agreement (AHKFTA). “Our goal is to help our country maintain its competitive advantage among Asean member-states. One way to do this is to raise awareness on our trade engagements and engage our stakeholders to take full advantage of the vast opportunities arising from further regional integration in the Asia-Pacific region,” Trade Undersecretary Ceferino S. Rodolfo said in a news statement.
Red tape slows mandatory destruction of sham goods Business Mirror 12th Apr 2016
The Intellectual Property Office of the Philippines (IPOPHL) is looking to streamline procedures in the border detection, seizure and destruction of counterfeit products passing through the Bureau of Customs (BOC). The IPOPHL plans to issue a joint administrative order with the BOC by May. Newly installed IPOPHL Director General Josephine R. Santiago said it is working with the BOC to strengthen border control measures against counterfeit goods and merchandise and hasten seizure and destruction procedures.
‘MSMEs, LGUs must cooperate on exports’ The Manila Times 4th Apr 2016
THE Department of Trade and Industry (DTI) has called on micro, small and medium enterprises (MSMEs) and local government units (LGU) in the provinces to work together to reach the country’s export targets under the 2015-2017 Philippine Export Development Plan (PEDP). Through its Export Marketing Bureau (EMB) and the Export Development Council (EDC), the DTI recently gathered MSMEs and LGUs in the Visayas and Mindanao to discuss ways on how to reach the “export stretch target” of 8 percent to 9 percent growth this year amid slowing global demand and last year’s contraction. At a forum on PEDP 2015-2017 regionalization, DTI-EMB Director Sennen M. Perlada said it was important for LGUs and the private sector to collaborate to improve the country’s export performance.
Hours extended for Customs payments The Manila Times 4th Apr 2016
The Bureau of Customs (BOC) said seven accredited banks responded to its call to adjust their operations to accommodate extended clearance of payments for the bureau’s stakeholders. In a statement on Monday, the bureau said Deutsche Bank, Security Bank, Asia United Bank, Metropolitan Bank and Trust Co. (Metrobank), Rizal Commercial Banking Corp. (RCBC), Banco de Oro Unibank Inc. (BDO) and EastWest Bank are now operating on extended hours. The bureau said its appeal to the banks is aimed to expedite release of shipments and avoid port congestion.
State-sanctioned smuggling boosting campaign funds The Manila Times 4th Apr 2016
The spike in smuggling incidents every time an election year approaches is a sure-fire clue that politicians have started to load up on campaign funds. That these rampant smuggling activities remain unstoppable, with little or no forceful action from the Aquino administration, confirms the suspicion of many Filipinos that this fund-raising campaign has the blessing of – or worse, is being directed from – the highest corridors of power. This view is also shared by not a few people in the business community. Sugar industry leaders, for one, say smuggling is being used for campaign funding, especially with the huge increase in seizures of contraband sugar. According to Sugar Anti-Smuggling Organization (Saso) of the Sugar Alliance of the Philippines (SAP), at least P812 million in smuggled sugar was seized from 2010-2015. But in the first quarter of this year alone, seizures of illegally imported sugar have already reached at least P287 million.
Comments sought on PNP proposals for chemical imports Business World 7th Apr 2016
THE BOARD of Investments (BoI), the Trade department’s investment promotion arm, is giving chemical industry stakeholders until Friday to submit comments on the draft implementing rules and regulation (IRR) covering controlled chemicals as proposed by the Philippine National Police (PNP). The IRR, which is expected to take effect on May 7, is in line with Section 4-C to 4-F of Presidential Decree No. 1866 as amended by Republic Act No. 9516, which provides the list of chemicals to be controlled. “We are seeking a balanced solution to regulate the industry while simplifying the processes involved in securing PNP permits and licenses,” said Ceferino S. Rodolfo, Trade undersecretary and BoI managing head, said in a statement yesterday.
Customs bill expected to be signed into law by next week Business World 6th Apr 2016
THE PRESIDENT will sign the Customs Modernization and Tariff Act (CMTA) in time for the expected completion of the implementing rules and regulations (IRR) next week, the Customs commissioner said. In a March 22 interview, Customs Commissioner Alberto D. Lina expressed confidence the measure will obtain President Benigno S. C. Aquino III’s signature instead of simply lapsing into law. “The President will sign because it will be part of his legacy,” Mr. Lina said in Filipino, when asked whether the Customs bureau has received word from Mr. Aquino regarding CMTA.
Many barriers continue to hamper trade with US Inquirer 4th Apr 2016
COMPLEX barriers continue to hamper the expansion of trade between the Philippines and the United States as American exporters still face restrictive policies and regulations that make it more difficult for them to do business here. In the 2016 National Trade Estimate Report on Foreign Trade Barriers, the Office of the US Trade Representative said these barriers included foreign investment restrictions; pervasive corruption; the country’s sanitary and phytosanitary regulations; continued imposition of high in-quota tariffs for agricultural products and quantitative restrictions; irregularities in customs, and government procurement laws that reportedly tend to favor local firms.
Defense & Security
U.S. defense chief visits Philippines amid sea dispute with China Reuters 13th Apr 2016
U.S. Defense Secretary Ash Carter arrived in the Philippines on Wednesday to highlight strong and growing military relations with a crucial Southeast Asian ally as China assertively pursues its claims in the South China Sea. Carter's visit comes as the two countries conduct joint military exercises and on the heels of an agreement that allows a U.S. military presence at five Philippine bases, one of which Carter plans to visit on this week's trip.
Kidnappers behead two hostages in the Philippines Rappler 13th Apr 2016
Philippine kidnappers that want to ally with the Islamic State (ISIS) groups have beheaded two local hostages, police said Wednesday, April 13. Police on the southern island of Mindanao recovered the decapitated corpses of the two men on Tuesday, 9 days after they were taken, said the police chief of Lanao del Sur province.
Three more militants killed in Basilan Manila Bulletin 13th Apr 2016
Three militants were killed after another fighting between government forces and the Abu Sayyaf Group (ASG) broke out in Tipo-Tipo, Basilan Wednesday morning, April 13, 2016. Maj. Filemon Tan, spokesman, Western Mindanao Command (Wesmincom), said the encounter took place 10:45 a.m. at Barangay Baguindan in Tipo-Tipo town. It was the same barangay where the heavy fighting that left 18 soldiers, including a junior officer, dead and 53 others wounded took place last Saturday, April 9.
Eye on China, U.S. and Philippines Ramp Up Military Alliance The New York Times 12th Apr 2016
After a rocky patch of 25 years, the United States and the Philippines will solidify a new, increasingly complex military relationship this week, driven partly by China’s assertive actions in the South China Sea. An agreement that allows the United States to build facilities at five Philippine military bases will spread more American troops, planes and ships across the island nation than have been here in decades.
G7 calls for restraint in maritime disputes The Manila Times 11th Apr 2016
Group of Seven foreign ministers on Monday expressed concern about maritime disputes in Asia, as worries grow in the region over China’s territorial and military ambitions. Beijing lays claim to almost all of the South China Sea despite conflicting partial claims from Brunei, Malaysia, Vietnam, Taiwan and the Philippines. It has constructed artificial islands in the area in recent months as it asserts its sovereignty. Japan, meanwhile, has its own dispute with China in the East China Sea over uninhabited islands that it administers but that are also claimed by Beijing.
AFP chief orders sustained combat vs Sayyaf PhilStar 11th Apr 2016
As the Armed Forces of the Philippines (AFP) grieves for its fallen comrades, Gen. Hernando Iriberri ordered his field commanders to sustain operations against the bandit group Abu Sayyaf. Iriberri, AFP chief of staff, also instructed Joint Task Group-Basilan chief Col. Rolando Bautista to take care of more than 50 wounded soldiers and the needs of the families of the 18 who were killed. Along with Defense Secretary Voltaire Gazmin, Iriberri flew to Zamboanga early yesterday to assess the situation and salute the wounded and slain fighters for their gallantry. All the wounded soldiers were transported to Camp Navarro Hospital inside the Western Mindanao Command headquarters in Zamboanga City.
ISIS behind Basilan killings, says terror expert Rappler 11th Apr 2016
The Islamic State in Iraq and Syria, also known as ISIS, IS, ISIL, or Da’esch, carried out its first major attack in the Philippines over the weekend in a 10-hour gun battle with the military in Basilan that killed at least 19 soldiers and 13 terrorists. This was disclosed to Rappler by Rohan Gunaratna, the head of Singapore’s International Centre for Political Violence & Terrorism Research. “The group responsible is the Islamic State, led by Isnilon Hapilon in the Philippines,” Gunaratna told Rappler in a phone interview on Sunday, April 11. Gunaratna is the author of numerous books on security, including Inside Al-Qaeda.
Military, police set guidelines for election responsibilities Business World 7th Apr 2016
THE MILITARY and police have signed a joint agreement on operational guidelines in the upcoming general elections. Armed Forces of the Philippines (AFP) Chief of Staff Lt. Gen. Hernando A. Iriberri and Philippine National Police (PNP) Chief Director-General Ricardo C. Marquez signed on Thursday the Joint Operational Guidelines, also called the Joint Letter Directive -- a manual containing the policies to be undertaken by the military and police as deputized agencies of the Commission on Elections (Comelec).
PH Navy gets three ships from Australia Manila Bulletin 5th Apr 2016
Three more Balikpapan-class landing craft heavy (LCH) vessels acquired by the government from Australia have arrived in the country, the military announced on Monday. Philippine Navy (PN) spokesman Capt. Lued Lincuna said the three LCH vessels, which amounted to approximately P270 million, arrived in Liloan, Cebu last Mach 26 at around 10:30 a.m. Lincuna said the three vessels were transported by a cargo ship from NTG Shipping traversing the waters from Darwin, Australia via Cairns, Australia, before heading to the Philippines. Two were loaded in Darwin and one in Cairns. All three were offloaded in Cebu.
Japanese sub arrives in Philippines on training exercise Nikkei Asian Review 4th Apr 2016
A Japanese submarine docked in the Philippines for the first time in 15 years on Sunday, a move calculated to display Japan's increasingly close armed forces cooperation with the Southeast Asian country in the face of an assertive China. "It's meant to send a message to the relevant countries that we're keeping a close eye on the South China Sea," a senior Defense Ministry official said, explaining that Japan was acting in concert with the U.S. Navy.
US, Philippines Hold War Games as China Flexes Muscles Defense News 3rd Apr 2016
Thousands of US and Filipino troops will on Monday launch annual war games that this year are being seen as a show of strength in the face of China’s increasing assertiveness in the region. The 11-day Balikatan (shoulder-to-shoulder) exercises are expected to show how the Philippines, though severely outgunned, can counter China with the help of the United States, its longest-standing ally. China has in recent months built massive structures including radar systems and an airstrip over reefs and outcrops in the contested South China Sea, sparking international concern. Beijing lays claim to almost all of the waters, which are important for international shipping and believed to hold valuable mineral and energy deposits, and neighboring countries fear China could impose military controls over the entire sea. The joint maneuvers come ahead of a decision this year by a United Nations-backed tribunal on a legal challenge by Manila to China’s territorial claims.
Economics
Philippine business optimism falls Business World 13th Apr 2016
OPTIMISM among senior business executives in the Philippines fell significantly last quarter from a year ago -- and at a rate bigger than falls recorded in Southeast Asia, Asia and the Pacific and globally for the same periods -- according to findings of a quarterly survey by Grant Thornton. But Philippine readings were still better than those of the region and the world in general. The firm’s latest International Business Report, whose results were e-mailed to journalists yesterday, was derived from a quarterly survey of chief executive officers, managing directors, chairmen or other senior executives of companies across industries.
Belmonte vows to pursue Cha-cha in next Congress Business Mirror 13th Apr 2016
House Speaker Feliciano Belmonte Jr. will continue to champion the call of business groups for economic Charter change (Cha-cha) when he returns to Congress in the next administration. Belmonte said he would refile Resolution of Both Houses 1, or the so-called economic Cha-cha, which seeks to amend the 60-40 rule that limits foreign ownership of certain activities in the Philippines. Several local and foreign business groups backed the passage of the measure in the 16th Congress.
PHL growth outlook still deemed ‘one of the strongest’ in Asia Business World 12th Apr 2016
THE INTERNATIONAL Monetary Fund (IMF) has kept its trimmed growth forecast for the Philippines as part of a downward revision of projections worldwide, but the country is still expected to remain among Asia’s best performers with “substantial” buffers against external shocks. IMF’s general perception of the Philippines’ relative strength coincides with that of Standard and Poor’s Ratings Services (S&P) which yesterday upgraded its own forecasts for the country.
World Bank still not sold on PHL tax administration Business Mirror 11th Apr 2016
The next administration should increase taxes and reform the country’s tax system so the government could hike its spending for infrastructure and social services by P900 billion a year, according to local economists and the World Bank. In a report, the World Bank said the Philippines needs to increase its investment in the infrastructure and social services sectors by 6.8 percent of GDP, which is equivalent to P900 billion, to achieve inclusive growth.
Groups make final push for proposed PPP Act Business Mirror 8th Apr 2016
THE massive pipeline of key infrastructure deals—possibly at around a trillion pesos in total cost— is a reflection of how much money the Philippines needs to invest to improve the quality of life in the country. With this issue at hand, funding mechanisms for public-private partnership (PPP) contracts must be expanded, stakeholders discussed during a forum in Makati City on Friday.
Think tank: Philippine GDP to grow 6%-7% despite leadership change InterAksyon 7th Apr 2016
The nearly $300-billion Philippine economy is poised to grow between 6 and 7 percent over the medium to long term even amid a change in political leadership in June, according to international research and analytics firm Capital Economics. “But there are good reasons to think that [President Aquino’s] achievements will outlast his presidency. We remain optimistic that the Philippines will continue to grow strongly over the coming years,” Capital Economics said in its latest report on the Philippines released April 5. The think tank cited strong macroeconomic fundamentals, which the Philippines has managed to build over the years on the back of sound economic policies and improved governance of public institutions.
Philippines Pledges Record Spending to Fight Global Slowdown Bloomberg 6th Apr 2016
The Philippines, heading into an election next month, plans to boost state spending by more than 30 percent to help shield the economy from a global slowdown. The record proposed expenditure this year will support economic growth of as much as 7.8 percent, Economic Planning Secretary Emmanuel Esguerra, who took office in February, said in an interview in Manila on Wednesday. State spending rose 7 percent in January from a year earlier, the Finance Department said Thursday. “We are a small country in an open economy but we have some degree of freedom and that is your government spending,” Esguerra said. “That is being ramped up. Sure, the global environment is not great but you have your domestic sources of growth.”
Monetary policy stability seen as March inflation meets estimates Business World 5th Apr 2016
HIGHER food and oil prices pushed up inflation in March in line with market expectations, but the first-quarter average increase stayed below the government’s full-year target range. In a report, the Philippine Statistics Authority (PSA) said headline inflation picked up to 1.1% last month from 0.9% in February, but was still lower than the 2.4% seen in March of last year. Last month’s inflation turnout equaled the 1.1% estimate median in a BusinessWorld poll of 13 economists last week, and was within the Bangko Sentral ng Pilipinas’ (BSP) 0.6%-1.4% estimate range, prompting the central bank yesterday to say that it saw “no urgent need to change stance of policy.”
Gov’t sets new investment road show Business World 4th Apr 2016
THE GOVERNMENT will hold another non-deal road show in London by the end of the week, National Treasurer Roberto B. Tan said yesterday, building on an earlier effort to keep investor confidence in an economy facing a change in leadership. The London round would be the “second-leg” of overseas meetings with portfolio managers after the one held in the United States -- the Philippines’ biggest source of capital flows -- last month. That March non-deal road show -- so-called because the goal is to woo potential clients without necessarily reaching an agreement -- was meant to assuage concerns over possible policy reversal under President Benigno S. C. Aquino III’s successor who will be elected on May 9, the Investor Relations Office (IRO) had said last month.
TAKING THE LONG VIEW | The Philippine economy in the next 30 years InterAksyon 3rd Apr 2016
The historic role of the 1986 EDSA Revolt was to restore democracy to the Philippines, deeply flawed it may be. Relatively good governance turned around the economy from flat-lining during the twilight of the Marcos Regime to attaining a 40-year high annual average growth of 6.2% since 2010. Some incremental gains had been made against poverty and inequality during the past few years such as the slight decline of poverty incidence to 26.3% in the first quarter of 2015 from 28.6% in 2009. Even granted that these advances are too tentative at present, why are many Filipinos reluctant to recognize the gains?
‘PH unpredictability discourages investors’ The Manila Times 3rd Apr 2016
The Philippines should refrain from giving out tax incentives as sweeteners to foreign investors, and instead focus on providing a business-friendly environment as its “unpredictable nature” has become the main factor in discouraging major investments from coming into the country, Ilian Mihov, dean of the prestigious INSEAD business school said. In an interview with The Manila Times, Mihov said that tax incentives merely help investors build capital. However, he said that “capital” in itself is only a small part of the reason why investors would want to invest in an emerging economy such as the Philippines. “Tax incentives basically only help investors build, which is part of the capital. But the capital is a very small part of it,” Mihov said. “If the Philippines can improve the business environment within which these companies operate, and do so even for small local investors who employ three or fewer people, then the Philippines does not need to give tax incentives.”
Energy
LGUs get P234-million share from mining taxes Business Mirror 13th Apr 2016
The Department of Budget and Management (DBM) announced on Wednesday the release of P233.8 million to local government units (LGUs) constituting their share in the mining taxes collected by the national government from December 2011 to December 2014. However, the total amount of P233.8 million ordered released by the DBM is not even 1 percent of the total collections in royalties and taxes reported by the Department of Finance (DOF) for the full year of 2012, which already amounted to P35.26 billion for the said one-year period alone.
Group urges DOE: Find ‘win-win’ solution in FiT eligible selection Business Mirror 13th Apr 2016
THE Philippine Solar Power Solar Alliance (PSPA) strongly urged the Department of Energy (DOE) to exercise caution in coming up with the list of power providers that are eligible to receive the new P8.69-per-kilowatt-hour (kWh) feed-in-tariff (FiT) rate in the second round of FiT for solar. “The alliance asks the DOE for prudence in disqualifying completed solar projects. These companies poured billions of pesos into solar projects and their possible disqualification to the renewable-energy incentives not only denies the investors the opportunity to recover their capital. More important, it kills the momentum created by the DOE and erodes investors’ confidence,” PSPA President Tetchi Cruz-Capellan said.
Rural electrification program lights up 32,441 sitios–NEA Business Mirror 13th Apr 2016
The National Electrification Administration (NEA) has completed the electrification of its 32,441 sitios within the Palace term of President Aquino. In a news statement released on Wednesday, the NEA said that the last sitio that has been energized was Sitio Sampaguita in Barangay Calangahan, Lugait, Misamis Oriental. Mr. Aquino led the ceremony of the sitio’s electrification, which is part of the government’s social-reform agenda.
Luzon grid on alert as power plants trip PhilStar 12th Apr 2016
The Luzon grid was placed on yellow alert yesterday after several power plants tripped. Energy Secretary Zenaida Monsada said high demand, particularly at peak hours, and maintenance work in some power plants were also considered in placing the grid on yellow alert. A yellow alert means reserves are below the minimum level set by the regulator.
Oil firms to cut prices The Manila Times 11th Apr 2016
Pilipinas Shell, Petron, PTT Philippines, SeaOil, Phoenix and Eastern Petroleum have announced that they will roll back prices of their petroleum products. On Monday, Shell said it will reduce the prices of gasoline by 70 centavos per liter (last week’s price was P0.15 centavos per liter), diesel by 50 centavos per liter (last week’s price was 60 centavos per liter) and kerosene by 55 centavos per liter (last week’s price was 40 centavos per liter) effective 6 a.m. on Tuesday. Petron and Flying V will cut gasoline prices by 70 centavos per liter, diesel by 50 centavos per liter and kerosene by 55 centavos per liter effective 12:01 a.m. also on Tuesday.
DOE vows stable power in May polls The Manila Times 11th Apr 2016
The Department of Energy (DOE), as lead agency of Power Task Force Election (PTFE) 2016, met with stakeholders to ensure that systems will be in place 10 days before the local and national elections on May 9 this year. Toward that end, Energy Secretary Zenaida Monsada recently went to Mindanao to personally check the Agus 6 and 7 hydropower plants in Iligan City as well as the PTFE headquarters within the National Grid Corporation of the Philippines (NGCP)-Iligan Regional Disaster Command Center (IRDCC).
Rules set for retail electricity supplier scheme Business World 7th Apr 2016
THE ENERGY Regulatory Commission (ERC) has adopted a set of rules governing the issuance of license to retail electricity suppliers (RES) as well as the requirements and conditions to qualify as such. “The suspension has been there for almost two years,” ERC Chairman Jose Vicente B. Salazar said yesterday, adding that there was already a clamor from the industry to issue the rules. The ERC listed five entities that may qualify for RES status -- those that are authorized by the regulator to “sell, broker, market or aggregate electricity to the end users.” These are: generation companies or their affiliates; and affiliates of distribution utilities with respect to their contestable market -- or electricity end users that have a choice of supplier of electricity -- within or outside their franchise area.
Financial Services
Philippines: Minimum capital of US$2.2 mln proposed for HMOs Asia Insurance Review 14th Apr 2016
The Insurance Commission (IC) is proposing requiring new Health Maintenance Organisation (HMOs) to have a minimum paid-up capital of PHP100 million (US$2.2 million). According to the draft circular, all existing HMOs must have a minimum paid-up capital of at least PHP10 million, reported the Manila Times. These existing HMOs obtained their licence from the previous regulator, the Department of Health (DOH), and those which renewed their licence with the IC in December 2015.
More foreign banks eye PHL operations Business World 13th Apr 2016
TWO MORE foreign banks are looking to set up shop in the Philippines, an official from the Bangko Sentral ng Pilipinas (BSP) said, which if approved would add to the six offshore lenders that entered the country last year. BSP Deputy Governor Nestor A. Espenilla, Jr. said another Asian lender has signaled intent to operate in the Philippines, which joins a pending application filed earlier by another bank from within the region. “We may have a new applicant -- one, Asian,” Mr. Espenilla told reporters on Monday, which brings the number of pending applications to two.
Bank ‘reputational risk’ from $81-M heist feared hitting OFW funds Business World 10th Apr 2016
REMITTANCES could take a hit as Philippine banks reel from “reputational risk” in the wake of the $81-million heist involving the country’s financial system, analysts at ANZ Research said in a report, warning that this, in turn, could weigh on economic growth. “[T]he reputational risks emanating from the recent investigations on money laundering involving one of the country’s biggest banks may weigh on remittance growth. Media reports note that foreign banks have severed ties with remittance companies servicing overseas Filipinos,” ANZ economists Eugenia F. Victorino and Glenn B. Maguire said in the report. “To sustain the consumption level of recipient families, [overseas Filipino workers, or OFWs] may be forced to transact directly with banks, facing higher transaction costs and less favorable exchange rates.”
BSP looking at ‘sender only pays’ rule for NRPS Business World 10th Apr 2016
THE BANGKO SENTRAL ng Pilipinas (BSP) is eyeing to implement a “sender only pays” policy for retail transactions as part of the reforms sought under its planned e-payments platform, a central bank official said. In a speech before the SWIFT Business Forum Philippines last week, BSP Deputy Governor Nestor A. Espenilla, Jr. said one of the priority projects under the National Retail Payments System (NRPS) launched in 2015 was the creation of an electronic credit transfer scheme, which aims to lessen the costs while fast-tracking money transfers across banks and financial entities. Among the key changes eyed by the central bank is the promotion of a “sender only pays” rule, where fund recipients can accept funds or payments “with no deductions” under the NRPS.
Policy continuity watched as PHL keeps debt rating Business World 8th Apr 2016
FITCH RATINGS has kept its minimum investment grade rating on the Philippines, the debt watcher announced Friday, citing solid macroeconomic footing even as it flagged continuity of reforms through the change of administration at the end of June as a key source of risk to the country’s outlook. In a statement, Fitch said it has affirmed the country’s long-term foreign-currency issuer default ratings (IDR) at “BBB-”. Rating for the Philippines’ long-term local-currency IDR was also kept at “BBB”.
PNB Savings to set up more branches this year Business World 6th Apr 2016
PNB SAVINGS Bank, the thrift banking arm of Lucio C. Tan-led Philippine National Bank (PNB), is looking to add more branches this year in “key growth areas” in a bid to widen its footprint nationwide. PNB Savings, which was the product of the merger of PNB and its fellow Lucio C. Tan-owned Allied Banking Corp. in 2013, plans to expand its network of branches to 60 in 2016 to cater to more clients nationwide. “PNB Savings Bank is consolidating its branch network in key growth areas,” PNB Chief Marketing Officer Norman Martin C. Reyes said in a text message when sought for details on the thrift bank’s expansion plans this year.
BSP tells lenders to be on guard versus dirty money transactions Business World 6th Apr 2016
THE BANGKO SENTRAL ng Pilipinas (BSP) has reminded banks to take “extra caution” in dealing with money changers and remittance agents, which comes amid the reported involvement of several firms in the cleansing of $81-million stolen funds through several transfers from financial institutions to casinos. The central bank through Memorandum 2016-004 stressed the need for banks to take “enhanced due diligence” in transacting with foreign exchange dealers as part of lenders’ risk management activities.
PHL retains flexibility to expand credit -- StanChart Business World 4th Apr 2016
In a report: “Asia leverage -- after the boom,” the bank said the country faces low risk of over-leveraging, or having debt reach a level that is not sustainable in terms of perceived returns. “The Philippines, an outperformer in Asia, has plenty of room to expand private-sector leverage to boost domestic consumption and sustain growth,” the report read. “There is also ample scope for the private sector to partner with the government in financing large-scale infrastructure projects.” Alongside Thailand and Taiwan, the Philippines remains among three economies identified that have the ability to issue more loans to consumers and the private sector, the bank added.
Food & Agriculture
Satellite technology takes root in Philippine farms Inquirer 12th Apr 2016
The Department of Agriculture (DA) is fully embracing satellite technology, with data generated from hundreds of kilometers up, to help address matters that affect food production down on the ground. The DA is doing so as the first Philippine-assembled micro-satellite which was launched last March awaits deployment from the International Space Station. Called Diwata-1, the micro-satellite is expected to help the country’s efforts to enhance and promote agricultural productivity, among other applications.
Yolanda victims to be trained in agriculture finance Business World 12th Apr 2016
In a statement yesterday, Japan’s aid agency said it will launch this week together with the National Confederation of Cooperatives and the Japanese nongovernment organization (NGO) Planet Finance Japan a capacity-building initiative to train at least 20,000 farmers in agriculture finance. “The project called Improving Livelihood of Small Scale Low-Income Farmers affected by Typhoon Haiyan through Enhanced Institutional Capacities of Cooperatives in Eastern Visayas in Tacloban City, includes training on financial literacy and the development of agriculture microfinance loans and risk-mitigating products to be implemented until January 2019,” JICA said.
‘Passage of new rice imports policy a must’ Business Mirror 11th Apr 2016
The next Congress must prioritize the amendment of a law which allowed Manila to protect the rice sector by limiting the entry of cheap rice imports, a senior official of the National Economic and Development Authority (Neda) said on Monday. Neda Deputy Director General Rosemarie Edillon said Republic Act (RA) 8178, or the Agricultural Tariffication Act, should be amended before the extension of the quantitative restriction (QR) on rice granted by the World Trade Organization (WTO) expires in July 2017.
El Nino wreaks havoc on Philippines food production Food Navigator Asia 7th Apr 2016
Dry and wet spells brought by El Nino and La Nina are threatening the Philippines' food security, an official has warned a special government committee on food and climate change. Thelma Cinco, head of the impact assessment and applications section of the Philippine Atmospheric, Geophysical and Astronomical Services Administration, said that the weather phenomena are a manifestation of global warming and would directly affect the country's agricultural production.
Drones for disaster risk reduction in Philippines Far Eastern Agriculture 5th Apr 2016
The Philippines department of agriculture (DA) and the UN’s food and agriculture organisation (FAO) have launched drones to predict and reduce disaster risk in the agricultural sector. In the light of increasing impacts of climate change, floods and typhoons on food security in the country, the FAO and DA have come together to launch the use of this technology for disaster risk reduction in the agriculture sector. “The adoption of modern technologies in agriculture, such as the use of drones or unmanned aerial vehicles, can significantly enhance risk and damage assessments, and revolutionise the way we prepare for and respond to disasters that affect the livelihoods of vulnerable farmers and fishers and the country’s food security,” said The Philippines’ FAO representative José Luis Fernández.
Road map being drafted for banana industry Business World 3rd Apr 2016
The road map plan comes after a shipment of about 2,700 boxes to China was recently intercepted after being found to have pesticide residue levels higher than standard. Agriculture Undersecretary Emerson U. Palad, in a news conference here last week, said that even before the drafting of the road map, the Bureau of Plant Industry (BPI) will look into the incident to check whether protocols were violated. “The audit team will start the audit on Monday (April 4),” Mr. Palad said. China has a 0.1 part per million (PPM) maximum residue level (MRL) of chemicals in fresh export goods.
Health & Life Sciences
Bill grants additional incentives, other perks for barrio doctors Business Mirror 7th Apr 2016
To prevent a looming scarcity and unequal distribution of health workers in the country, a lawmaker has filed a bill seeking to provide additional incentives and other benefits for rural doctors. Nationalist People’s Coalition Rep. Arthur C. Yap of Bohol, author of House Bill 6391, or the Rural Health Unit Doctors and Other Benefits Act, said his proposal aims to stop the migration of doctors. Thus, leaving the people who are in most need of their services in rural areas.
Globe Business boosts healthcare industry in PH Inquirer 4th Apr 2016
With the various challenges in accessing healthcare services in the Philippines, Globe Business, the information and communications technology (ICT) arm of Globe Telecom, recently held the Healthcare Industry Forum, an event that aims to educate healthcare practitioners through industry insights and showcase how ICT can help advance healthcare delivery in the country. Over 25 IT officers and executives from various pharmaceuticals, hospitals, clinics, and health maintenance organizations (HMO) such as Johnson and Johnson, United Laboratories, MyHealth Clinics, Novartis, Mundi Pharma, St. Luke’s Medical Center, Cathay Drug Company Inc., Maxicare, Pfizer, Bayer Crop Science, and Asalus/Intellicare attended the forum held at the Globe Telepark Valero Showroom in Makati City.
ICT products among DOST’s contributions to health care The Manila Times 3rd Apr 2016
Department of Science and Technology (DOST) Secretary Mario Montejo has said the agency’s efforts in developing information and communications technology (ICT)-enabled products and systems are among its major contributions to address various health concerns. “ICT has changed the way we live, and healthcare is among the areas that could benefit from its capability,” he added. As these products and services will greatly contribute to the improvement of medical services in the Philippines, Montejo said the DOST saw the opportunity to find innovative solutions to help those in the countryside receive faster and more affordable type of medical services.
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Philippines launches world's first mass dengue vaccination The Bismarck Tribune 4th Apr 2016
The Philippines on Monday launched the first public immunization program for dengue fever, seeking to administer to a million schoolchildren the world's first licensed vaccine against a mosquito-borne disease that the World Health Organization estimates infects 390 million people a year globally. Hundreds of fourth-graders at a public school in metropolitan Manila's Marikina city were given the first of three shots of Dengvaxia. Some of the pupils received their vaccination shot under the glare of cameras during a festive ceremony at a gymnasium festooned with multicolored bunting and preceded by songs and dances performed by the children.
ICT
Telcos’ feud over 700-MHz band could drag on for years Business Mirror 11th Apr 2016
The whole telecommunications industry is keenly awaiting the outcome of the case lodged before the National Telecommunications Commission (NTC) on the “unfair” allocation of a digital real estate, considered one of the key answers to the relatively slow Internet speeds in the Philippines. While Globe Telecom Inc. has called the uneven distribution of the 700-megahertz (MHz) frequency band to one mobile services group as “anticompetitive,” the telecommunications regulator believes that moves to block out competition will also result in more dismal services down the line.
E-courts system gets UNDP nod Business Mirror 8th Apr 2016
THE country’s e-courts system is considered a good model in expediting the delivery of justice and reduction of corruption in Asia-Pacific countries, a United Nations Development Program (UNDP) report said. UNDP said the creation of e-courts augurs well for the achievement of the targets set under the Sustainable Development Goal (SDG) 16 on justice for all.
Is our dream of faster and cheaper Internet services achievable? PhilStar 12th Apr 2016
There are two – well, even three – ways to view this story of the country having to contend with slow and expensive Internet for decades now despite the telecommunication industry’s deregulation 21 years ago. The first side of the story belongs to the two remaining dominant players in the industry: PLDT/Smart and Globe, both of which have declared spending billions of pesos in recent years to “upgrade” their facilities. Recently, both have been vocal blaming the government for its inability to provide better Internet services to the Filipino public despite the huge capital investments it had spent, plus what it will be spending in the next years to deliver speedier Internet services.
Massive data breach exposes 55 million Philippine voters to risks Enterprise Innovation 11th Apr 2016
The Philippines' 55 million voters are now susceptible to fraud and other risks after a massive data breach leaked the entire database of the Commission on Elections (Comelec) last month, security firm Trend Micro said. The defacement of the Comelec website by a hacker group called Anonymous Philippines happened at near midnight on March 27. In a message to the government, the group said they want the poll body to implement tighter security measures on the precinct count optical scan (PCOS) machines to be used in the May 9 polls.
Electronics group ups export forecast Business World 8th Apr 2016
DESPITE persistent concerns on the health of the global economy, Philippine electronics exports will likely grow 2-5% this year on strong demand for “cyber security” products, the Semiconductor & Electronics Industries in the Philippines, Inc. (SEIPI) said on Friday, upgrading its 0-4% forecast announced in February. “Our projected growth for 2016 is 2-5%,” SEIPI President Dan C. Lachica told a media briefing at the Board of Investments office in Makati City. “There’s a lot of uncertainty in the global economy. Our main export destinations haven’t fully recovered, like China and Japan. US will also have its elections and Europe has an issue on migration.”
Duterte, Roxas lead Facebook conversations Business World 8th Apr 2016
RODRIGO R. Duterte and Manuel A. Roxas II are the most talked about presidential candidate on Facebook, while Mr. Duterte’s running mate, Senator Alan Peter S. Cayetano, has overtaken his Senate colleague, Ferdinand R. Marcos, Jr., who briefly led conversations early in March. According to the latest data on the Philippines’ 2016 general elections by social media company Facebook, Mr. Duterte, who has kept the lead in conversations, now has 64% of this interaction. Mr. Roxas is the second most talked about presidential candidate, particularly during the second presidential debate on March 20. The ruling Liberal Party’s standard-bearer generated 3% more conversations and is on Mr. Duterte’s trail at 47%. Mr. Roxas is followed by Grace Poe (40%), Jejomar C. Binay (27%), and Miriam Defensor-Santiago (19%).
Philippines tries to solve its crippling traffic jams with live data Mashable 5th Apr 2016
Manila is notorious for its traffic jams, and the Philippine capital is trying to use data to solve the problem. Ride-hailing app Grab announced Tuesday it's working with the World Bank and the Philippine government to make its traffic data available to the Southeast Asian nation, in the hopes of helping authorities move faster to address traffic blockages.
ICT-Davao bent to double 33,000 job target in 3 years Sun Star 4th Apr 2016
TO FURTHER boost the Business Processing Management (BPM) sector in Davao City, the Information and Communication Technology (ICT)-Davao Inc. with other industry players identified talents and facilities as crucial factors in achieving their target of doubling the 33,000 full-time equivalent (FTE) BPM employees within three years. As the city was recognized recently as one of the few cities in the country to be awarded with Center of Excellence Award during 2015-2016 Awarding Ceremonies on Center of Excellence, Top Next Wave Cities, and Top 10 Emerging Next Wave Cities for IT-BPM Operations, industry players are in works of improving the skills and abilities of the pool of talents in the city beyond English speaking and expanding facilities to cater the incoming potential BPO locators.
Digital transformation grips more PH firms Inquirer 4th Apr 2016
SINCE the 1980s and 1990s, “digitization” has enabled companies to drive operational efficiencies through facilitating electronic storage, and sharing of data. However, although today’s transformation is the progression of the “digitization” we have been experiencing for several decades, perhaps a better description of today’s environment would be the “transformation of digital,” leading to a pervasive adoption and connection of all “things,” resulting in the emergence of the digital economy.
ICT workers in short supply Sun Star 4th Apr 2016
AS THE demand for highly skilled workers specializing in information and communications technology (ICT) surges, the local talent pool, however, remains scarce, said industry players. The Vocational Technical Training and Assessment Institute (VocTech), an affiliate of local IT company iTech-RAR Solutions Inc., intends to address this through skills education, as it is scheduled to open a school in Mambaling in Cebu City this June. “We see that there is a need for workers, but when the industry demands, there are not enough people available. With VocTech, we will have a pool of talents to serve the needs of the industry,” said Pedro V. Sandalo Jr., the school director for operations and finance.
Infrastructure
Government okays Trip reinstitution in 2017 Business Mirror 13th Apr 2016
The interagency Infrastructure Committee (Infracom) has approved the reinstitution of the Three-year Rolling Infrastructure Program (Trip) to meet the government’s investment targets for public infrastructure. The Trip will start in 2017, and will be financed through the General Appropriations Act for next year. The 2017 national budget is estimated to reach P3.35 trillion, an increase of 11.5 percent from the P3.002-trillion budget this year.
Manila’s water-privatization plan draws US representative’s flak for IFC role Business Mirror 13th Apr 2016
IN a bustling, densely populated corner of Manila, fruit vendor Coring Gutierrez reads $35 due from her latest water bill, more than triple what her family of six paid 15 years ago. “As long as we get water,” she sighs, reflecting the relief many of the Philippine capital region’s nearly 12 million residents feel about having a steady and safe-water supply. Water was not supposed to become so expensive for Manila under a 1997 World Bank deal that privatized the seaside city’s water and sewage management.
Poe to push for Mindanao Railway System if elected Manila Bulletin 13th Apr 2016
Presidential candidate Senator Grace Poe has sought the establishment of the Mindanao Railway System (MRS) that would help spur economic development in the region. In wooing the Mindanaoan voters to support the “Galing at Puso” campaign, the lady senator pledged to provide a P1 trillion budget for Mindanao in her first-year stint should she win the presidency in the upcoming May 9 polls, part of which would be used to jumpstart the MRS project.
More PPP financing schemes mulled Business World Online 8th Apr 2016
ALTERNATIVE financing options, particularly tapping the capital markets, become increasingly important as more public-private partnership (PPP) projects progress in the Philippines. Government officials, investors, financial institutions and other stakeholders shared this view during a forum on “Accessing the Philippine Capital Markets for PPPs” in Makati City on Friday. The forum -- themed “Innovations in Infrastructure Financing” -- was organized by the PPP Center and International Project Finance Association, with support from the Asian Development Bank and in partnership with the Philippine Stock Exchange, Inc. (PSE) and Securities and Exchange Commission (SEC). The government has a total of 53 PPPs -- mostly involving public infrastructure -- in the pipeline. Contracts for 12 projects worth P217.4 billion have been awarded since the Aquino administration launched the flagship infrastructure program in the third quarter of 2010.
Manufacturing
Manufacturing growth seen sustained in Feb. Business World 8th Apr 2016
FACTORY OUTPUT likely continued to outpace the year-ago performance in February, though at a slower clip than the record high logged in January, Moody’s Analytics said on Friday. “Philippine industrial production likely expanded 5.5% in February, following January’s astronomical 34.3% gain,” the unit of credit rater Moody’s Investors Service said in a market preview. The Philippine Statistics Authority (PSA) is scheduled to report the February Monthly Integrated Survey of Selected Industries on April 12.
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