| Regional Affairs
US welcomes Duterte plan to talk with China Philstar 20th May 2016
MANILA, Philippines - The United States has welcomed incoming president Rodrigo Duterte’s readiness to hold bilateral talks with China to resolve disputes. Assistant Secretary of State for East Asian and Pacific Affairs Daniel Russel said the US encouraged and welcomed dialogue among claimants in disputed waters. “So in that respect, the statement of the presumptive president-elect of the Philippines is consistent with the important prospect for diplomatic engagement and the peaceful resolution of differences among the countries in Southeast Asia through dialogue,” Russel told a press briefing on Wednesday in Washington on US President Barack Obama’s upcoming trip to Vietnam and Japan. “But it in no way contradicts or undermines the legitimacy of any country availing themselves of appropriate legal mechanisms as well, a right that all 10 ASEAN countries have repeatedly reaffirmed,” he stressed.
Duterte to US: Are you with us? The Philippine Star 17th May 2016
Incoming president Rodrigo Duterte has one thing to ask US Ambassador Philip Goldberg when the latter pays him a courtesy call this week. “I would only ask the US ambassador, ‘are you with us?’” Duterte said. The US ambassador, Duterte said, signified his intention to see him personally when his election victory became imminent. The meeting between Duterte and Goldberg would mark the first time that the outgoing Davao City mayor would formally receive an American government official. The US government drew the ire of Duterte after a British-American national facing charges for exploding dynamite inside his hotel room in 2002 was brought out of the country by US authorities. Duterte is also against the conduct of the joint Philippine-US Balikatan exercises. The incoming president also said he would like to get an official report on how China seized Panatag (Scarborough) Shoal, noting that the takeover is depriving Filipino fishermen of livelihood. Panatag Shoal is 124 nautical miles from mainland Zambales, or well within the Philippines’ 200-nautical mile exclusive economic zone (EEZ). Chinese ships started occupying the shoal on April 10, 2012 after they prevented the Philippine Navy from arresting Chinese poachers who had harvested endangered marine species and corals. Chinese boats accompanied by larger vessels have since barred Filipino fishermen from entering the area.
Duterte wants friendly ties with China Rappler 16th May 2016
Philippines' president-elect Rodrigo Duterte said Sunday, May 15, he wanted friendly relations with China and confirmed he was open to direct talks over a territorial row that has badly damaged bilateral ties. Duterte also announced that China's ambassador to Manila would be among the first three foreign envoys he planned to meet on Monday, May16, after winning the May 9 presidential election in a landslide. "Well ties have never been cold. But I would rather be friendly with everybody," Duterte told reporters in the southern city of Davao when asked whether he wanted closer ties with China than seen under current President Benigno Aquino III. Relations between China and the Philippines worsened sharply throughout Aquino's 6-year term over conflicting claims to parts of the South China Sea, one of the world's most strategically important waterways.
National Affairs
Congress convenes for canvassing BusinessWorld 24th May 2016
The joint public session of the two chambers of Congress has authorized a joint committee to begin the canvassing of votes for president and vice-president today as scheduled. The House of Representatives and the Senate adopted the rules of canvass after Senator Vicente C. Sotto III withdrew his proposed amendment to the rules. Vice-presidential bet and Senator Ferdinand R. Marcos, Jr. urged Congress yesterday to defer the proclamation of the vice-president as the Comelec has not granted yet his petition for a system audit. The joint committee has begun opening the ballot boxes manually uploaded to the Comelec Central Server beginning with the absentee votes. The canvassing committee members for the Senate are: Aquilino D.L. Pimentel III as chairman, Juan Edgardo M. Angara, Teofisto D. Guingona III, Sergio dlR. Osmeña III and Ralph G. Recto as members of the majority; Juan F. Ponce Enrile and Mr. Sotto (as minority); and Cynthia A. Villar and Joseph Victor G. Ejercito. The canvassing committee members for the House of Representatives are: Mr. Gonzalez as chairman; Elpidio Barzaga, Jr. (Dasmariñas City), Romero S. Quimbo (2nd district, Marikina City), Reynaldo V. Umali (2nd district, Oriental Mindoro), Rufus B. Rodriguez (2nd district, Cagayan de Oro), and Fredenil H. Castro (2nd district, Capiz) as majority members; and Silvestre H. Bello III (1-BAP party-list) for the minority.
Alliances sealed as lawmakers board Duterte ship BusinessWorld 23rd May 2016
The National Unity Party (NUP) and the Lakas-CMD sealed their alliance on Monday, in support of the speakership bid of Pantaleon G. Alvarez, the representative-elect of Davao del Norte and a key ally of incoming president Rodrigo R. Duterte. “The purpose of this agreement is to unite our forces to have a common legislative agenda. We want to emphasize that both parties will be supporting president-elect Duterte and incoming [House] speaker Pantaleon Alvarez,” Reginald S. Velasco, executive director of the NUP, said at a signing ceremony at the House of Representatives in Quezon City. Mr. Velasco also said they are hoping to sign a similar coalition agreement with Mr. Duterte’s party, the PDP-Laban, of which the incoming president is now titular head. Mr. Velasco said the NUP will have 40 members in the House by the incoming 17th Congress, and added that the number could reach 50 since some congressmen wanted to transfer to their party. Lakas-CMD has four elected officials, although this number might increase as some talks with other congressmen are under way, Mr. Romualdez said. Last week, the Lakas-CMD formalized its coalition with the PDP-Laban, which had also entered into a coalition with the Nationalist People’s Coalition (NPC). The NPC has at least 50 members in the incoming Congress. Mr. Alvarez claimed over the weekend that at least 180 of the 286 members of the House have committed to support his speakership bid, which is more than the majority needed to secure leadership in this chamber.
Tail end of 16th Congress saw passage of key bills Business Mirror 23rd May 2016
True to their promise, the House of Representatives and the Senate approved a number of pending priority bills at the resumption of sessions on Monday, before they convene as the National Board of Canvassers (NBOC). Deputy Speaker and Nationalist People’s Coalition Rep. Giorgiddi Aggabao of Isabela said the bill strengthening the Balanced Housing Development Program and the measure amending foreign-ownership restrictions in specific laws governing adjustment companies, lending companies, financing companies and investment houses cited in the Foreign Investment Negative List (FINL), except those in the Constitution, have been ratified by the lower chamber.
Duterte appoints 3 more Cabinet officials Phil Daily Inquirer 23rd May 2016
At a press conference on Saturday evening, Duterte announced in Davao City that retired Gen. Hermogenes Esperon, the AFP chief of staff of then President Gloria Macapagal-Arroyo, would be his national security adviser. Also on Sunday, Ernesto M. Pernia of the UP School of Economics said he had “unofficially” accepted Duterte’s offer for him to head the state planning agency, National Economic and Development Authority (Neda). Pernia said the Duterte administration would prioritize poverty reduction, alongside regional and rural development as well as quality education and healthcare.
Duterte expresses interest to introduce three-child policy in PH CNN Philippines 22nd May 2016
Aside from restoring death penalty and imposing curfew, presumptive president Rodrigo Duterte revealed he is also planning to implement a three-child policy. Talking to reporters early Sunday (May 22), Duterte said this policy will "probably" form part of family planning program under his administration. Duterte did not expound on this plan, but said he’s pondering about it. Defending family planning and the three-child policy, the presumptive president even challenged bishops of the Catholic Church to a debate. Meanwhile, Duterte said he is willing to work with the 17th Congress to make some of his priority policies enacted into law, particularly the imposition of curfew, as well as the liquor and smoking ban, which will be included in his “first orders” once he assumes office on June 30.
No BBL: Next Congress to focus on federalism Philstar 22nd May 2016
The incoming 17th Congress will not tackle the controversial Bangsamoro Basic Law (BBL), which outgoing lawmakers have tried but failed to pass, according to Davao del Norte Rep. Pantaleon Alvarez. Alvarez, who is the choice for speaker of incoming president Rodrigo Duterte, yesterday said the BBL would be subsumed by the planned shift to the federal form of government that the Duterte administration would prioritize. He said the BBL would give way to federalism “because they are the same concept.” “While waiting for federalism, the Duterte administration can fully implement the Tripoli Agreement,” he said. The Tripoli accord led to the establishment of the Autonomous Region in Muslim Mindanao (ARMM). Alvarez said ARMM would function better and prosper under a federal system. “They can manage their own natural resources and economy,” he said.
Belmonte’s acid test in race for House Speaker Business Mirror 19th May 2016
The leadership of Speaker Feliciano Belmonte Jr. at the House of Representatives will face an acid test in the 17th Congress, following reports that President-elect Rodrigo R. Duterte wanted a congressman from Mindanao to lead the lower house. Reports said returning Davao del Norte Rep. Pantaleon D. Alvarez is being groomed as House speaker under the Duterte administration. Belmonte, however, remained unfazed, saying that he still has the support of the Liberal Party (LP) members in the lower chamber to bolster his chances in the impending speakership race.
Cha-cha high on 17th Congress agenda BusinessMirror 19th May 2016
Returning Rep. Pantaleon D. Alvarez of Davao del Norte, who is being eyed as Speaker of the House of Representatives in the Duterte administration, on Wednesday said his leadership will prioritize a measure changing the 1987 Constitution. Alvarez said the Charter change (Cha-cha) and the revival of the death penalty will be prioritized in the 17th Congress. “Revising the present Constitution [will be the first legislative item in the 17th Congress]. Ang gusto ng ating bagong pangulo ay palitan ito into a federal form [of government],” Alvarez said in a news conference. He said they will do the Cha-cha through a constitutional convention. Also, during a lunch hosted by the lower chamber’s Party-list bloc on Wednesday, Alvarez expressed confidence he can get the speakership from Speaker Feliciano Belmonte Jr. in the next Congress. Alvarez said at least 80 lawmakers are set to join the Coalition for Change of Partido Demokratiko Pilipino-Lakas ng Bayan (PDP-Laban) of presumptive President Rodrigo R. Duterte. The incoming lawmaker said he will ask the coalition to support Duterte’s call for aCha-cha and the restoration of the death penalty.
Election body proclaims senators Business World 19th May 2016
Current Senate President Franklin M. Drilon led the roster with 18,607,391 votes. He was followed closely by Emmanuel Joel J. Villanueva, the former director-general of Technical Education and Skills Development Authority, who garnered 18,459,222 votes. The other winning candidates were: reelected Senator Vicente C. Sotto III (17,200,371); returning senators Panfilo M. Lacson (16,926,152), Richard J. Gordon (16,719,322), and Juan Miguel F. Zubiri (16,119,165). Boxing icon Emmanuel D. Pacquiao, the outgoing representative of Sarangani lone district, placed seventh with 16,050,546 votes. He was followed by returning senator Francis N. Pangilinan (15,955,949), and former Akbayan Rep. Ana Theresia Hontiveros-Baraquel (15,915,213). The last three winning candidates were outgoing Valenzuela City 1st District Rep. Sherwin T. Gatchalian (14,953,768), reelected Senator Ralph G. Recto (14,271,868) and former Justice Secretary Leila Norma Eulalia Josefa M. de Lima (14,144,070).
Businessmen hope for simplified processes under Duterte admin Rappler 18th May 2016
Businessmen are hoping that the administration of president-elect Rodrigo Duterte would simplify business processes across the country, just as he had done in Davao City. Donald Dee, Employers Confederation of the Philippines acting president, made the statement at the roundtable discussion on the Philippine workforce and the Association of Southeast Asian Nations (ASEAN) integration hosted by the Philippine Bar Association at the Manila Golf and Country Club in Makati City on Wednesday, May 18. "We are excited that the elected president [is] coming from the local government and who has the reputation of really working very hard to simplify processes in his own city in Davao. We hope that with his leadership, he can convince the other cities and towns to also do the same," Dee said in his speech at the forum.
Obama congratulates president-elect Duterte Inquirer 18th May 2016
US President Barack Obama on Tuesday congratulated Philippines president-elect Rodrigo Duterte on his landslide victory at the polls, hailing the country’s “vibrant democracy” — and emphasizing the importance of protecting human rights. In the call with Duterte, Obama “highlighted the enduring values that underpin our thriving alliance with the Philippines… including our shared commitments to democracy, human rights, rule of law, and inclusive economic growth,” the White House said.
VP race rivals told: Wait for final count Inquirer 17th May 2016
Election watchdog Parish Pastoral Council for Responsible Voting (PPCRV) has cautioned vice presidential candidates Leni Robredo and Bongbong Marcos against declaring premature victory, saying it is sowing confusion as election results have not been finalized. PPCRV chair Tita de Villa said the numbers from both the Commission on Elections (Comelec) and the PPCRV were not conclusive and should not be used as basis for declaring victory.As of 7:45 last night, the PPCRV vote tally reflected 96.13 percent of transmitted election returns (ERs). Robredo had 14,022,932 votes and Marcos had 13,803,842, giving her a lead of 219,090 votes
Communist party offered posts as Duterte Cabinet takes shape Business World Online 16th May 2016
Presumptive President-elect Rodrigo R. Duterte yesterday bared here an initial list of prospective Cabinet members and said he would offer top posts in four line departments to the Communist Party of the Philippines (CPP) -- a statement that drew guarded remarks from sectors that could be affected. He said he would offer to the Communist Party of the Philippines (CPP) -- which he hopes to engage in peace talks -- the top posts of the departments of Agrarian Reform, Environment and Natural Resources (DENR), Labor and Employment or Social Welfare and Development. “These are the only departments I can concede to them,” he said. Mr. Duterte, a self-professed socialist who once studied under CPP founder Jose Maria C. Sison at the Lyceum, said of the CPP and its armed wing, the New People’s Army (NPA): “I do not begrudge the NPAs for looking for arms”, but added: “They have to realize that I am the government and I am the enemy also, but I offer my hand in peace to (Mr.) Sison and the rest, and we can talk.”
LIST: Who's who in the incoming Duterte Cabinet Rappler 16th May 2016
With more than a month before he takes office, president-elect Rodrigo Duterte is starting to form his administration. Here is a list of people that Duterte identified on Monday, May 16, as his future Cabinet secretaries: Executive Secretary: Salvador Medialdea, Presidential Spokesperson: Salvador Panelo, Acting Foreign Affairs: Former Securities and Exchange Commission chief Perfecto Yasay Jr, Transportation and Communications: Arthur Tugade, Finance: Former agriculture secretary Carlos Dominguez, Education: Lyceum of the Philippines Batangas president Peter Laurel, Agriculture: Former North Cotabato governor Emmanuel "Manny" Piñol, Public Works and Highways: Las Piñas Representative Mark Villar, Peace process: Jesus Dureza, PAGCOR: Former Bureau of Immigration chief Andrea Domingo.
Fist of iron The Economist 14th May 2016
IN A vain effort to quell the revolution that created the first, brief Philippine republic in 1899 the Spanish army executed Jose Rizal, a nationalist author, in a park that now bears his name. Almost 90 years later demonstrators, fed up with the murderous kleptocracy of President Ferdinand Marcos, massed in the same park in a display of people power that eventually pushed him into exile. On May 7th, two days before Filipinos went to the polls to choose a new leader, 250,000 people thronged Rizal Park for a rally for Rodrigo “digong” Duterte, who promises another political upheaval. Mr Duterte, the tough-talking mayor of Davao, triumphed on May 9th: with more than 95% of the vote counted, he holds a 15-point lead. The country of 100m people that Mr Duterte inherits has one of the fastest-growing economies in Asia. But poverty stubbornly persists. Voters are also fed up with crumbling infrastructure, productivity sapping gridlock, persistent corruption and ineffective government. And discontent simmers at the country’s narrow, feudal politics, dominated for decades by a handful of wealthy landowning families. Mr Duterte ran as an action man and outsider, ready to tackle the nation’s problems just as one might wring the neck of a foul snake. He has given few details.
Duterte wants Tetangco back on economic team Business Mirror 13th May 2016
THE Duterte administration will keep a hands-off policy on the Bangko Sentral ng Pilipinas (BSP), agreeing with its leadership’s current monetary stance. Also, the tourism sector will continue to be a priority under the incoming administration, Carlos G. Dominguez said in a phone interview with the BusinessMirror. Dominguez heads the economic cluster of newly elected President Rodrigo R. Duterte’s transition team, and is said to be taking over the Department of Finance (DOF). He clarified, though, that he has not yet accepted the DOF post, and is “just helping out in the transition committee.” Dominguez also assured that Amando Tetangco Jr. would remain as the BSP governor: “That’s a constitutional body; you cannot touch that. And if I had my way, Tetangco would remain beyond his term. He’s done well.” Tetangco, hailed as one of the world’s best central bankers for seven consecutive years by the Global Finance magazine, is expected to step down in 2017, with the expiration of his six-year term. It is his second and last appointment as BSP chief.
Customs
Customs invests $1.4M to beef up cybersecurity Manila Bulletin 22nd May 2016
The Bureau of Custom has invested $1.4 million in a comprehensive cybersecurity program that will protect the government’s second largest tax agency from cybercriminal activities. Customs Commissioner Alberto D. Lina said they partnered with Microsoft Philippines to implement reforms in the agency’s information and communications technology and establish the highest data integrity assurance levels. Lina said Customs is the first government agency to implement a comprehensive cybersecurity program in less than year.
Numerous cyberattacks thwarted, Customs says BusinessWorld 22nd May 2016
The Bureau of Customs (BoC) says it has prevented thousands attempts by cyber thieves to hack its database following recent cyberattacks on other government agencies. The bureau has identified more than 250,000 attempted attacks to date, BoC Commissioner Alberto D. Lina said on the sidelines of a Friday press briefing regarding the agency’s modernization project. “We’re constantly receiving info from our digital crimes unit and they’ve tracked 187,758 attacks from late 2015 up to February of this year,” he said. “The BoC is very serious about cyber-crimes. We are protectors of intellectual rights,” he added but refused to provide additional details regarding the dates of the attacks and the identities of the attackers. “We are working very closely with the National Bureau of Investigation with this matter and we will be subjecting the attackers to forensic analysis,” added the commissioner. “The compromise rate of BoC is 85% of units. We are cleaning that up now,” said the commissioner when asked about the severity of the issue. As of January, the BoC has revealed that they lost around P64 billion of their revenues due to the recorded cyberattacks.
Customs apprehends P5-M worth of luxury vehicles declared as truck parts GMA Network 18th May 2016
THE PHILIPPINES - The Customs Bureau on Wednesday said it apprehended P5-million worth of misdeclared shipments from South Korea after reporting luxury vehicles as "truck parts." "This is a case of misdeclaration, a violation on the Tariff and Customs Code of the Philippines (TCCP), and we are bound by Customs laws to apprehend imports or exports which are shipped in violation of the TCCP," Enforcement Deputy Commissioner Ariel F. Nepomuceno said in a statement. Also on Wednesday, the BOC said it recently issued a memorandum mandating all concerned offices of the bureau to oversee correct and proper valuation of all harmonized system codes of all motor vehicles.
WTO asked: Is Thailand snubbing cigarette ruling? Inquirer.net 12th May 2016
The Philippines has asked the World Trade Organization (WTO) to review Thailand’s compliance with a ruling issued five years ago ordering it to impose a fair valuation of tariffs on imported cigarettes.Under Article 21.5 of the WTO DSU, a panel can be established to rule whether the implementation of the recommendations and rulings has been carried out.
Defense & Security
India may supply two warships to Philippines The Hindu 19th May 2016
In a boost to India’s defence exports in a region of strategic importance, Kolkata-based public sector yard Garden Reach Ship Builders (GRSE) has emerged as the lowest bidder to supply two warships to the Philippines Navy. Diplomatic sources while confirming the development said that the final decision was expected in a couple of weeks. “A post qualification inspection was conducted by a team from Manila as per the procedure to check the capability of the shipyard. It is election time in Manila. So a final decision is likely to be taken in a week or two,” sources told The Hindu GRSE is competing with five other bidders from South Korea and Spain. While it was widely reported that GRSE has offered the Kamorta class Anti-Submarine Warfare (ASW) ships for the tender, GRSE officials denied it but did not elaborate on the specifics. ‘Act East’ policy Philippines which has territorial disputes with China over the South China Sea has announced plans to beef up its Navy and issued a tender in December 2013 for two frigates with a budget of Philippine peso 18 billion or about $437 million translating to about $218.5 million per ship with delivery of both ships to be completed in about four years. India has been actively beefing up relations in the region as part of its ‘Act East’ policy under which maritime security and defence cooperation are assuming a central role. On the other hand India has been attempting to build a domestic defence manufacturing base and increase its defence exports. India exported its first warship to Mauritius in December 2014, an offshore patrol vessel, CGS Barracuda, built by GRSE at a cost of Rs.350 crore. Since then GRSE has been aggressively scouting for opportunities in the neighbourhood. It is also set to supply four patrol vessels to Vietnam under the $100 million line of credit extended by India in 2014. Kolkata-based public sector yard Garden Reach Ship Builders emerges the lowest bidder
Philippines and France sign defence accord IHS Jane's 360 16th May 2016
The Philippines and France have signed a defence agreement to explore opportunities to co-operate in military equipment and related technologies. The accord - announced by the French embassy in Manila on 13 May - was signed by Philippine Defense Secretary Voltaire Gazmin and France's Ambassador to the Philippines, Thierry Mathou. The agreement covers a "new phase in their bilateral [defence] relations", said the embassy in a statement, and provides a framework for co-operation in "defence equipment, logistics, and the defence industry".
Philippines' president-elect Rodrigo Duterte wants friendly ties with China Thanh Nien News 16th May 2016
Philippines' president-elect Rodrigo Duterte said he wanted friendly relations with China and confirmed he was open to direct talks over a territorial row that has badly damaged bilateral ties. Duterte also announced that China's ambassador to Manila would be among the first three foreign envoys he planned to meet on Monday, after winning the May 9 presidential election in a landslide. "Well ties have never been cold. But I would rather be friendly with everybody," Duterte told reporters in the southern city of Davao when asked whether he wanted closer ties with China than seen under current President Benigno Aquino.
Duterte to continue EDCA The Philippine Star 25th May 2016
Incoming president Rodrigo Duterte is in favor of continuing the Enhanced Defense Cooperation Agreement (EDCA) between the Philippines and the United States due to the limited capabilities of Manila’s security forces. EDCA, which was signed by the two countries on April 28, 2014, permits American forces to preposition temporary facilities in Philippine military installations. The deal was questioned before the court by groups who believe that it would violate Philippine sovereignty. The legality of the bilateral agreement was upheld by the Supreme Court last January. The high court ruled that EDCA is a valid executive agreement that the president can enter into under the Constitution. Some lawmakers, however, believe that Duterte can easily scrap EDCA because it is just an executive agreement, not a treaty approved by the Senate. There are no indications, however, that the next Philippine leader would do away with the deal. “I have no problem with EDCA-sanctioned use of Philippine military bases by US troops because we don't have good external defense capabilities,” Duterte said in a press briefing Monday night here. The signing of EDCA has been viewed as an effort to counter China’s aggressive actions in the South China Sea, where about $5-trillion worth of trade passes through yearly.
Indonesia considering South China Sea patrols with Malaysia, Philippines: Military chief Channel NewsAsia 19th May 2016
Malaysia and the Philippines may conduct joint patrols in parts of the disputed South China Sea, said Indonesia’s military chief General Gatot Nurmantyo. At a meeting in Yogyakarta on May 5, foreign ministers of the three ASEAN countries had agreed to conduct patrols to combat piracy in the Sulu and Sulawesi Sea. However, on Wednesday (May 18), the Indonesian military chief hinted that joint operations could go beyond their earlier commitments, saying that the trilateral patrols agreed upon may actually venture beyond the Sulu and Sulawesi Sea. General Gatot stressed that Indonesia remains a non-claimant state in the disputed territory, despite the possible joint patrols in parts of the South China Sea. His plans come as a surprise and security analysts said this could further stoke tensions in the already disputed waterways. The idea of a joint patrol is likely to be supported by the Philippines because on its own, it only has a limited capability to deter China. One analyst said he believes General Gatot’s proposal was made unilaterally - something which he probably has not yet discussed with his own government. "If you come to the Ministry of Foreign Affairs, I strongly believe the ministry will reject any idea about Indonesian involvement on patrols in the South China Sea,” said Alman Helvas Ali, a researcher at the Indonesian Institute for Strategic and Defense Studies. “Last year, for example, Singapore proposed joint patrols on the South China Sea in the eastern part of the Malaya peninsula, between Singapore, Malaysia and Indonesia, but Indonesia rejected the idea because it is too sensitive for Indonesia," he added. General Gatot said he will soon meet with his Malaysian and Philippine counterparts to discuss details of the patrols in the Sulu and Sulawesi Sea. During that meeting, the possibility of expanding the scope of the cooperation to conduct joint patrols in parts of the South China Sea could also be on the table.
Indonesia, Malaysia, Philippines join hands on maritime terror Nikkei Asian Review 18th May 2016
Indonesia, Malaysia and the Philippines will start jointly monitoring the Celebes Sea in response to a spate of recent attacks by Islamic extremists and pirates, securing a key sea lane that could provide an alternative to the South China Sea in an emergency. Foreign ministers and military chiefs of the three countries met May 5 in the Indonesian city of Yogyakarta to discuss the growing security threat in the Celebes. They issued a joint statement including plans to patrol the waters and to share information about extremists and pirates operating there, as well as to establish a trilateral emergency hotline.
No bargain over South China Sea – China Manila Bulletin 17th May 2016
The Chinese government vowed to take a “strong position” in response to any force that intends to take the forthcoming decision on the arbitral proceedings as an excuse to do harm to China’s sovereignty and rights and interests. This stern warning was made by Director General Xu Hong, Department of Treaty and Law of the Chinese Foreign Ministry, during a recent press briefing in Beijing, the harshest warning issued yet by a Chinese official over the possible outcome of the deliberations of the Permanent Court of Arbitration (PCA) on this matter. “We hope that any party involved will not be hijacked by this arbitration,” said Director Xu.
Malaysia, Indonesia, Philippines to draft SOP on maritime security in Sulu Sea New Straits Times 14th May 2016
A Standard Operating Procedure (SOP) on maritime security in the Sulu Sea is expected to be established during a trilateral technical meeting between Malaysia, the Philippines and Indonesia tomorrow. Deputy Foreign Minister Datuk Seri Reezal Merican said the meeting is the result of a common pledge by the three nations to address maritime crimes following cases of hijacking of ships as well as kidnappings. "This is the first technical meeting between the three countries, which had held a trilateral meeting earlier (this month). "The SOP will, among others, establish cooperation in intelligence-sharing and sea patrolling to curb kidnappings, which is a cause of concern to all including the Indonesian government, as its citizens have also become victims (to pirates)," he said in reply to a question by Dr Tang Seng Giaw (DAP-Kepong) in parliament today. The three countries had earlier this month agreed to a four-point plan to curb hijackings and kidnappings by establishing three-way coordination efforts including sea patrols.
Economics
Duterte team starts work on tax reform Business World 24th May 2016
Incoming Finance Secretary Carlos G. Dominguez has assembled an eight-man team to map out the Duterte administration’s tax reform plan, which he said will factor in recommendations by his predecessor that include a contentious hike in consumption tax. “We’re going to take the proposals of the current administration, tweak it to our priorities and push it in Congress,” Mr. Dominguez yesterday told BusinessWorld in an interview here at the Marco Polo hotel, which he owns.
Outgoing Finance chief to propose tax reforms Business World 23rd May 2016
Outgoing Finance Secretary Cesar V. Purisima will submit tax reform recommendations to the administration of newly elected President Rodrigo R. Duterte that he says could yield as much as $3 billion of revenue annually, enough to wipe out the budget deficit last year. The proposal includes lowering income and corporate taxes while lifting the sales tax, Mr. Purisima said in a May 20 interview in Manila. The proposal also calls for increasing the excise tax on oil, removing exemptions for the sales tax, and lifting bank deposit secrecy, all of which could yield as much as P141 billion ($3 billion) in the first year of implementation, he said.
Duterte’s Cha-cha bodes well for TPP bid–Pernia Business Mirror 23rd May 2016
With both the incoming Congress and president willing to amend the Constitution, the country’s bid to become a Trans-Pacific Partnership (TPP) member would transcend from the obvious mere lip service in the current administration to a genuine attempt in the next regime, experts say. The highly ambitious trade agreement, spearheaded by the US and currently negotiated by 12 economies, require Charter change (Cha-cha), particularly to remove the economic restrictions in the 1987 Constitutions—something that President Aquino repeatedly thumbed down, while announcing to the world that he wants the Philippines to be a part of the TPP. Dr. Ernesto Pernia, an economic adviser of President-elect Rodrigo R. Duterte and likely to become the next National Economic and Development Authority director general, said Duterte is both keen on joining the TPP and revising the Charter.
Pernia ready to head Neda and lead 7% growth charge Business Mirror 23rd May 2016
Former Asian Development Bank (ADB) lead economist Ernesto M. Pernia is prepared to accept the position of economic planning secretary and National Economic and Development Authority (Neda) director general under President-elect Rodrigo R. Duterte. Pernia, a professor emeritus at the University of the Philippines School of Economics, said he is ready to take on the challenge to help the incoming Duterte administration grow the economy by 7 percent. “I’m keen on accepting the offer to head the Neda. We have many economic priorities, which I will detail later on,” Pernia told the BusinessMirror in a phone interview on Sunday.
2017 spending plan set to be given to new gov’t for review BusinessWorld 23rd May 2016
Budget Secretary Florencio B. Abad said his department is in the middle of technical budget hearings (TBH) on the 2017 proposal, which is the last to be prepared under the Aquino administration. “We have completed the Tier 1 hearings (for ongoing programs/projects to determine fiscal space) and right now going through TBH for Tier 2 (for expansion or new projects where available fiscal space is to be applied),” Mr. Abad said in a text message. The Department of Budget and Management (DBM) has a two-tiered budgeting framework, separating deliberations on existing projects from discussions on new spending proposals and expanded activities. “We should be able to present the proposed budget to the new administration for its review some time late June. It can amend or revamp the proposed budget according to its priorities,” Mr. Abad added. The P3.35-trillion national budget to be proposed for next year will be 11.6% more than the P3.002 trillion earmarked for 2016 and is designed to help the economy grow by 6.6-7.6%. For 2017, P2.763 trillion or 82% will be allocated for ongoing programs and P587.5 billion for the expansion and implementation of new projects, based on DBM’s National Budget Memorandum No. 126 issued in April. The government also plans to spend an amount equivalent to 5% of the gross domestic product (GDP) on infrastructure that will sustain the country’s growth momentum.
Philippines Outgoing Minister to Submit $3 Billion Tax Plan Bloomberg.com 22nd May 2016
Outgoing Philippine Finance Secretary Cesar Purisima will submit tax reform recommendations to the administration of newly elected President Rodrigo Duterte that he says could yield as much as $3 billion of revenue annually, enough to wipe out the budget deficit last year. The proposal includes lowering income and corporate taxes while lifting the sales tax, Purisima said in a May 20 interview in Manila. It also calls for increasing the excise tax on oil, removing exemptions for the sales tax, and lifting bank deposit secrecy, all of which could yield as much as 141 billion pesos ($3 billion) in the first year of implementation, he said. While outgoing President Benigno Aquino has almost doubled state earnings by hunting tax evaders and curbing corruption, Fitch Ratings estimated general government revenue remains low at about 20 percent of gross domestic product in 2015, compared with the 28.6 percent median for similarly rated nations. Reforming the country’s tax regime forms part of Duterte’s economic agenda outlined by his designated Finance Secretary Carlos Dominguez on May 12. Purisima said he is confident in the skills of his successor, who he met for lunch before the interview, citing Dominguez’s previous stint as Agriculture Secretary, deep business experience and strong support from Duterte. The tax reform package includes cutting personal and corporate income tax rates to 25 percent within six years, and exempting workers earning 1 million pesos and below a year from paying taxes, said Purisima. The corporate tax rate is currently 30 percent while income tax rates are as high as 32 percent, among the highest in the region, according to the International Monetary Fund. The plan also recommends increasing the sales tax to 14 percent from 12 percent, reducing incentives for industries like real estate and allowing revenue agencies to retain part of their collection to modernize and fund personnel enhancement, according to a summary of the study obtained by Bloomberg.
First-quarter GDP growth surprises Business World 19th May 2016
Gross domestic product (GDP) -- which measures the amount of final goods and services produced in a country -- increased 6.9% annually in the first three months of this year, faster than the 5% growth recorded in the same period in 2015, according to preliminary estimates of the Philippine Statistics Authority (PSA). The first-quarter expansion is the fastest since the third quarter of 2013, another election year. “The 6.9% growth in the first quarter of 2016 showed the continuing high-growth trajectory of our country’s economy,” National Economic and Development Authority (NEDA) Director-General Emmanuel F. Esguerra told reporters in a briefing yesterday.
Budget gap yawns on spending Business World 19th May 2016
The fiscal gap grew more than fourfold from a year ago in March on a spending surge ahead of a 45-day (March 25-May 8) election ban on public works that was the fastest pace in eight months, as well as a decline in revenue collection. Preliminary data the Bureau of the Treasury (BTr) released yesterday showed that the government posted a P74.388-billion budget gap in March, more than four times the P17.372 billion shortfall seen a year ago and rising from the P34.626 billion recorded in February. The March print was the biggest since the P75.144-billion gap logged in December 2015 and brought the first-quarter deficit to P112.488 billion, triple the P33.517 billion level seen during the first three months of 2015.
PH is best economy in Southeast Asia – Oxford Business Group CNN Philippines 18th May 2016
The Philippines is the top-performing economy in Southeast Asia and if the new government plays its cards right, it can see growth ramp up in the medium-term, a consultancy said. "It was unthinkable seven years ago, but the Philippines is the best economy in Southeast Asia today," Oxford Business Group (OBG) Managing Editor Paulius Kuncinas said in a news conference on Friday (May 13). "Investors no longer ask why but where and what sectors they should invest in," he added.The OBG launched its investment outlook for the Philippines for 2016-2022 and the report credited the country's strong domestic consumption, growing business process outsourcing sector and newfound political stability as some of the key factors for growth.
Exporters back Duterte economic team Philstar 17th May 2016
The Philippine Exporters Confederation Inc. (Philexport) is confident the country’s export sector will be in good hands with the administration of incoming president Rodrigo Duterte. Philexport president Sergio Ortiz-Luis Jr. said Duterte’s economic team is composed of competent and “some of the best people we had” during the administrations of former Presidents Fidel Ramos and Gloria Macapagal-Arroyo. He said such kind of economic team would bode well for the economy, particularly for the export sector.
Rody aims for 7.8% annual growth rate Philstar 17th May 2016
The camp of incoming president Rodrigo Duterte yesterday bared an eight-point economic agenda the new administration intends to pursue in the next six years. Duterte’s spokesman Peter Laviña said the incoming president will pursue an annual economic growth rate of 7.8 percent, or even higher, in the effort to significantly cut the prevailing poverty index in the country. “If we want to reduce the poverty rate, we need a higher growth,” Laviña said. The projection of the incoming Duterte administration is within the perimeter of the Aquino government’s average annual economic growth pegged at six percent while this year’s target is placed at 6.8 to 7.8 percent, he said.
BSP shifts to IRC system; evens out gaps between rates BusinessMirror 17th May 2016
The Bangko Sentral ng Pilipinas (BSP) on Monday made an across-the-board operational change, as it officially begins a new system of monetary policy infrastructure, which has more influence over where interest rates should go beginning June this year. The BSP announced on Monday the full pursuit of an interest-rate corridor (IRC) as part of the effort to steer money market rates closer to the policy rates of the central bank. Under the IRC, the lending rate of the BSP currently at 6 percent acts as the ceiling. This top end limit encourages the banks to find the resources they need, other than from where they get it at present from the market. The floor of the corridor is derived from the special deposits account (SDA) rate and should help remove the incentive to lend funds at a lower rate. Both rates are to be set from their derivatives plus an adjustment being determined at present. The main rate, meanwhile, or the reverse repurchase (RRP), or borrowing rate of the BSP, still stands at 4 percent. Banks are also expected to manage their liquidity better with the shift to a new system, allowing for increased interbank market activity. This will strengthen price-discovery process, add depth to money markets and, eventually, help develop local capital markets. Across the world, several central banks are already adopting this kind of system—including Australia, Canada, the Eurosystem, New Zealand, the United Kingdom, Japan and Korea. Among Asean members, Malaysia, Thailand and Indonesia have since adopted the IRC system.
Duterte’s economic agenda: doable, inclusive, and comprehensive Business World 17th May 2016
One can argue that Duterte won the presidency largely due to his reputation as a punisher and, at the same time, as a compassionate mayor -- an indirect repudiation of the supposed ineptitude and indifference of the Aquino administration. President-elect Duterte was swept into the presidency not on the strength of his economic agenda but on the promise of law and order and the wiping out the drug menace everywhere, in urban centers and rural communities. Overall, Mr. Duterte’s economic road map is doable, inclusive, and comprehensive.
New anti-trust agency poised to become one of SEAsia’s best Philstar 15th May 2016
The country’s newly-created anti-trust authority is poised to become one of the region’s best given the sufficient powers vested into it by law to impose penalties on most anti-competitive practices, Philippine Competition Commission (PCC) chairman Arsenio Balisacan said. With the Philippine Competition Act’s draft implementing rules and regulations (IRR) now out for review, the PCC is aiming to be among the most effective anti-trust authority in Southeast Asia in instilling truly competitive markets despite being a late-comer in terms of anti-trust policies.
BOI brings industry roadmaps to MSMEs Manila Bulletin 15th May 2016
The Board of Investments (BOI), the industry development and investments promotion arm of the Department of Trade and Industry (DTI), has been doing regional conferences to rally LGUs, entrepreneurs, industry stakeholders to discuss how the region can craft localized version of the national industry roadmaps and achieve further growth and competitiveness. Last week, the BOI together with the DTI Regional Office in Cagayan Valley, gathered around 300 participants from the region’s various industry players, business sectors, local government units and agencies, and concerned stakeholders. The localization of roadmaps in the Cagayan Valley Region focuses on processed fruits, coffee, furniture, processed cacao, and processed meat — the dominant industries currently thriving in the region and which can be aligned and linked with the national industry roadmaps.
Duterte supports higher taxes on alcohol, cars, non-essential goods Manila Bulletin 13th May 2016
Presumptive president-elect Davao City Mayor Rodrigo Duterte is open to proposal of imposing higher levies on alcoholic products, luxury cars and other non-essential goods, the country’s top corporate tax experts claimed. According to the Tax Management Association of the Philippines (TMAP), Duterte is amenable to increasing excise tax on alcohol products, luxury or high-end automobiles, and other non-essential goods to shore up government revenues.
Transition team bares Duterte's 8-point economic agenda Rappler 12th May 2016
The transition team of presumptive president Rodrigo Duterte revealed his 8-point economic agenda for the Philippines on May 12. Former agriculture secretary Carlos “Sonny” Dominguez made the announcement after the transition team, of which he is part, met for the second time at the Marco Polo Hotel here. The team was created in response to President Benigno Aquino III’s call for the Duterte camp to get started on the transition between the two administrations. Dominguez also emphasized that because the transition team has only met twice so far, further details behind Duterte’s economic agenda will be ironed out in the coming days. Duterte himself earlier told Rappler that he is open to lifting the Charter's restriction on foreign ownership of Philippine corporations. He also said he will create a business environment that is friendly to foreign investors. "I will open investments. If possible, in every region, I'll have economic zones. And the foreigners can come, and they'll have the same protection. I guarantee them profits that will be swiftly returned to them," he said.
PHL among most restrictive -- OECD report Business World Online 12th May 2016
The Philippines has one of the world’s most restrictive regimes for foreign direct investments (FDI) -- a key source of jobs and capital -- despite the fact its economy is now one of the fastest-growing in Asia and the Pacific, the Organization for Economic Cooperation and Development (OECD) said in its first investment policy review of the country that was released on its Web site yesterday. “The Philippine economy is currently one of the fastest growing in the region,” the report read. “Both remittances and foreign direct investment are at record levels, the business process outsourcing sector is booming, the country is improving in international rankings and has been upgraded by credit rating agencies [since 2013].” Average Philippine gross domestic product growth picked up to 5.92% in 2011-2015 from 4.96% in 2005-2010. “[I]n spite of this commendable success, a strong case can be made that the process is not complete and that further steps might help to achieve the critical mass of reforms required to place the Philippines on a sustained and more inclusive growth trajectory,” the report said. It particularly zeroed in on the need to make the Philippines more FDI-friendly. Citing its FDI Regulatory Restrictiveness Index, which covers 65 economies, OECD noted that “the Philippines’ FDI regime is one of the most restrictive compared to OECD and non-OECD countries”, adding that most of such restrictions stem from the Constitution’s 40% limit on foreign ownership in strategic industries and economic sectors like telecommunications, transport and electricity public utilities; agriculture, fisheries and forestry; construction; advertising; private radio networks and real estate.
Energy
PH must steer away from coal plants – FPH Inquirer 23rd May 2016
The Lopez group took a strong stance on Monday against the use of coal to fuel the country’s power plants, citing an urgent need to mitigate the impact of climate change. Federico Lopez, chair and CEO of First Philippine Holdings (FPH) made a bold declaration during FPH’s annual stockholders meeting on Monday that the group would never build, develop or invest in any coal-fired power plant. “I’m certain that without looking too far, this country already has energy alternatives that do not mortgage the future of our children and the future of our planet,” Lopez said.
Cusi seeks balance on coal energy concerns BusinessWorld 24th May 2016
The incoming secretary of the Department of Energy (DoE) will seek to strike a balance between what power consumers need and the concerns of other sectors including those that have been voicing out their opposition to the construction of coal-fired plants. In a radio interview, Alfonso G. Cusi, the choice of incoming president Rodrigo R. Duterte to head the DoE, said he would look into the concerns of all sectors, but adding too that he recognized the country’s need to have sufficient power supply. He also said he would look at alternative sources of power, while pointing out that coal-fired power plants remain as among the cheapest and fastest facilities to be built in the face of the country’s growing need for reliable power supply. The outgoing Energy Secretary Zenaida Y. Monsada earlier said she was hopeful the next administration would carry on the department’s preparations to meet its mandate of ensuring adequate, continuous, and reliable power. These include the rules to fully implement EPIRA, encouraging private sector participation in power development as well as ensuring an orderly competition in the energy market. These include rules governing retail competition and open access in the Philippine electric power industry, which gives qualified “contestable” consumers the option to choose their preferred retail electricity suppliers; rules on the implementation of competitive selection process, which requires power contracts to be bid out to suppliers; and a Wholesale Electricity Spot Market for Mindanao.
FPH will not invest in coal-fired power plants BusinessWorld 23rd May 2016
First Philippine Holdings Corp. (FPH) will never invest in coal-fired power plants, its top officials said, amid plans to further expand its renewable energy portfolio. “Let me state unequivocally and for the record that FPH and its subsidiaries will not build, develop or invest in any coal-fired power plant,” its Chairman and Chief Executive Officer, Federico R. Lopez, said during a stockholders’ meeting in Pasig City on Monday. The diversified conglomerate had considered investing and developing coal-fired power plants, Mr. Lopez told reporters on the sidelines of the stockholders’ meeting. “In fact at some point we were studying it, we were going to invest in it. We even had plans that we announced. We’ve scrapped all of that already,” he said. The Lopez-led company invests in power generation and energy-related sectors through First Gen Corp. The subsidiary accounts for 23% of the country’s gross generation and operates Energy Development Corp. (EDC), the world’s largest integrated geothermal power producer.
Small-scale hydropower projects pushed BusinessWorld 23rd May 2016
Small hydroelectric power projects in the Philippines are viable investments for the private sector because of their long-term service contracts, but support is needed from regulators to hasten their development, an official of Repower Energy Development Corp. said. “Our run-of-river mini-hydro development projects all have service contracts with the Department of Energy (DoE) for 25 years which may be extended for another 25 years. This could potentially last for 50 years which is very attractive for investment,” said Victor J. Lee, Repower’s chief financial officer, in a statement. The extended contracts compares favorably against the long asset life of hydropower technology, with turbines lasting for a hundred years with the improvement in technology, he said. Financing mini-hydropower projects normally requires a 70%-80% in debt and 20%-30% equity, Mr. Lee said, adding that government financial institutions now offer non-recourse funding where a grace period on principal repayments is given during the construction period. Non-recourse loans are attractive for investors as the lender is entitled only to repayment from the profits of the project that the loan is funding. But Mr. Lee said the development of small hydropower infrastructure had been “less than satisfactory,” adding that there was a need to tap its potential sooner, to fulfill unmet energy demands while striking a balance between clean energy and fossil fuel-generated energy.
Metal production drops in 2015 BusinessWorld 20th May 2016
VALUE of metal production dropped by about a fifth annually last year due to depressed world ore prices, a reversal from the 40% increase seen in 2014, the Mines and Geosciences Bureau (MGB) said in a statement uploaded on its Web site on Thursday. MGB said metal output value dropped 23% to P108.21 billion last year from 2014’s P140.15 billion. “The lackluster performance of metal output last year can be traced to the downward trend in world metal prices brought about by excess supply and weaker global trade. Reduction in values of nickel, copper, iron or and chromite offset increases in gold and silver -- the only two metals that saw increments in volume as well that made up for decreases in world prices.
Duterte taps former CAAP chief Cusi as energy secretary Rappler 20th May 2016
President-elect Rodrigo Duterte plans to appoint former Civil Aviation Authority of the Philippines (CAAP) chief Alfonso Cusi as energy secretary, his spokesman said on Friday, May 20. Duterte spokesman Salvador Panelo confirmed the choice of Cusi to media Friday afternoon. (LIST: Who's who in the incoming Duterte Cabinet) Cusi was Manila International Airport Authority (MIAA) general manager before his stint in the CAAP. He is a known political ally of former president Gloria Macapagal Arroyo and was widely believed to have been forced out of his position when President Benigno Aquino III assumed office. As MIAA general manager, Cusi focused on getting ISO 900 certification for the Ninoy Aquino International Airport terminals to ensure that the facilities complied with international standards on safety and security. Cusi was also one of the respondents in a case wherein Arroyo was accused of bribing election officials in Mindanao in the 2004 elections. Cusi was accused of helping provide transportation to facilitate the bribery. Ombudsman Conchita Carpio Morales, however, dismissed the case for lack of evidence.
Don’t legislate PH energy mix – Umali The Manila Times Online 19th May 2016
The plan of Department of Energy (DOE) to legislate the proposed balanced energy mix in power supply will not work, according to the chairman of the House Energy Committee. “It won’t work. The market should dictate. It is not for us to legislate, because it is difficult to get out of it once it’s legislated, because for that we need to amend the law. I don’t think we will have that flexibility to move from one technology to another when we have that,” Representative Reynaldo V. Umali, chairman of house committee of energy told reporters in a chance interview after the 3rd Power and Electricity World Philippines. Under the DOE’s current fuel mix policy, the country should source 30 percent of its energy requirements from coal, 30 percent from renewable energy, and another 30 percent from natural gas. The remaining 10 percent will come from oil-based power plants. “We have to determine what is the baseload, and then when we determine that we peg appropriate technology and given the price and affordability concerns. After that it should be all clean energy,” he said. Umali even favored the moratorium for coal, “Those already constructed we cannot do anything about them, but limiting coal for new construction. For as long the baseload can already be covered by existing coal, we should limit it to that,” he said. Compared with ASEAN and APEC neighbors, the Philippines has the highest renewable energy share in its energy mix at 39.9 percent as of 2015, according to DOE and British Petroleum Review. Close in second place is New Zealand at 37.4 percent. Among the larger and more developed countries, China has 9.9 percent, U.S 5.4 percent, Australia 5.9 percent, Russia 5.8 percent, and Canada at 27.2 percent.
World Bank okays USD 67-M grant for PH’s renewable energy projects Manila Bulletin 13th May 2016
Two renewable energy-related projects totaling to USD 67 million have been approved by the World Bank (WB) for the Philippines. In a statement, the multilateral lender said its Executive Directors have approved a USD 44 million guarantee under the Philippines Renewable Energy Project (PhRED) to lessen risks of commercial lending to electric cooperatives. “This guarantee will enable these cooperatives to expand their electricity network, invest in renewable energy like small hydroelectric and solar power plants, and expand electricity access for poor households,” it said. The other project, worth USD23 million, was approved by WB Vice President Victoria Kwakwa on April 28, 2016 for the Access to Sustainable Energy Project (ASEP). The fund will be used to “bring solar power to remote communities and islands not connected to the electricity grid managed by electric cooperatives.” Energy Secretary Zenaida Monzada said these projects are great boosts to the government’s full-electrification bid by 2020 and to triple the renewable energy (RE) installed capacity by 2030.
Financial Services
Senate ends cyber-heist probe Business World 19th May 2016
The Bangko Sentral ng Pilipinas (BSP) will soon lay out possible sanctions for persons and financial entities found liable for February’s $81-million bank heist, a senior central bank official said, just as the Senate wrapped up its public inquiry into the biggest money laundering case the country has seen so far. BSP Deputy Governor Nestor A. Espenilla, Jr. said the central bank’s Supervision and Examination Sector has finished looking into the involvement of banks and other financial institutions under its watch, with the findings to be elevated to the Monetary Board for consideration and approval “very soon.”
BSP moves to boost cyber security Business World 17th May 2016
Banks will soon be subject to stricter security standards as the Bangko Sentral ng Pilipinas (BSP) readies new guidelines to address emerging cyber threats, especially with hacking and other attacks seen on the rise. BSP Deputy Governor Nestor A. Espenilla, Jr. said the central bank is drafting additional rules to boost bank defenses against financial crimes, particularly in the wake of February’s $81-million cross-border bank heist.
New law strengthens deposit insurer BusinessWorld 24th May 2016
Changes to the Philippine Deposit Insurance Corp. (PDIC) charter designed to better protect bank depositors have been signed into law by President Benigno S.C. Aquino III. Work on the reform -- a priority of the 16th Congress -- started in 2014. The Senate approved the proposal under Senate Bill (SB) No. 2976 last Dec. 14, while the House of Representatives adopted the Senate version as an amendment to House Bill No. 6020 on Jan. 25. It was sent to the Office of the President through the Presidential Legislative Liaison Office for Mr. Aquino’s approval and signature last April 26. “PDIC bill was signed into law as RA (Republic Act No.) 10846 on May 23, 2016,” Communications Secretary Herminio B. Coloma Jr., said via text when sought for an update on the measure.
Client identity cited in widening financial services BusinessWorld 24th May 2016
The lack of a national ID system in the Philippines has hampered efforts to broaden access to financial services, industry experts said, with banks pressed to shoulder additional costs in establishing a potential client’s identity before they can be integrated into the banking system. Both industry and financial regulators pointed out the need to create an enabling environment to widen financial inclusion -- which includes a system to better identify banking customers -- at a two-day conference of the Asian Development Bank (ADB) on Financial Inclusion and the Digital Economy in Mandaluyong. “It is recognized under the NSFI (National Strategy for Financial Inclusion) as a key barrier, and the industry has accurately identified that it is one of the major costs of onboarding financially-excluded markets,” bank officer Rochelle D. Tomas said of the Bangko Sentral ng Pilipinas’ (BSP) Inclusive Finance Advocacy Staff, citing the standing requirement for at least one photo identification card for any person to open a bank account. The House of Representatives worked on passing a bill to mandate the creation of a national ID system, but this has not seen enactment into law during the 16th Congress with barely a month of sessions left. Formally launched in July 2015, the BSP financial inclusion strategy aims to provide diverse financial products and services that would allow the underserved and unbanked sectors to tap formal services under the local financial system. The latest National Baseline Survey on Financial Inclusion published by the central bank last year showed that only 43% of Filipino adults hold savings, with 68% of them keeping their money at home rather than in financial entities. Only five in every 10 adults surveyed have experienced transacting with banks, the survey also bared.
PDIC bill awaiting Aquino’s signature BusinessWorld 23rd May 2016
The proposed amendments to the Philippine Deposit Insurance Corporation’s (PDIC) charter is a step closer to becoming a law after the bill passed by Congress has been sent to Malacañang for final approval. In a statement, the state deposit-insurer said Senate Bill (SB) No. 2976 -- amending Republic Act 3591 or the charter of the Philippine Deposit Insurance Corporation (PDIC) -- is now awaiting President Benigno S.C. Aquino III’s signature. The Senate approved the proposal on third and final reading last December 14, while the House of Representatives adopted the Senate version as an amendment to House Bill No. 6020 in Jan. 25, 2016. It was sent to the Office of the President through the Presidential Legislative Liaison Office for Mr. Aquino’s approval and signature last April 26. The President has 30 days to act on the measure. If it is unacted upon after the 30-day period, it lapses into law. “SB 2976 aims to equip PDIC with enhanced authorities to implement measures to further improve depositor protection and promote financial stability,” the state insurer said in its statement.
IMF backs removal of tax exemptions, incentives Manila Bulletin 23rd May 2016
The International Monetary Fund (IMF) is urging the Philippine government to eliminate or drastically reduce its tax exemptions and incentives given to corporations, particularly for mass housing projects. In a report submitted to the Department of Finance (DOF), the Washington D.C.-based institution said that tax incentives for enterprises should be targeted with a sunset provision, while tax holidays for mass housing projects should be repealed by Congress. IMF also added the government should prioritize the phase out of its investment tax incentives before discussing any proposed reduction of corporate income tax.
Purisima, Dominguez prepare for DOF transition Rappler 23rd May 2016
Finance Secretary Cesar Purisima met with his successor Carlos Dominguez on Friday, May 20, seeking to implement a smooth transition of power on June 30. The Department of Finance (DOF) said in a statement on Monday, May 23, that Purisima personally welcomed Dominguez as the next chief and discussed transition plans with him. "After speaking on the phone to congratulate Mr Dominguez last Thursday, he and I met the next day to begin the transition process," Purisima was quoted as saying. The DOF said it is preparing a transition document detailing the progress of all clusters, including revenue, liability management, privatization, government-owned and controlled corporations (GOCCs), and corporate affairs.
El Niño-affected finance institutions get BSP help Inquirer.net 20th May 2016
Small financial institutions operating in areas badly hit by the dry spell due to the El Niño phenomenon could avail of a one-year regulatory and rediscounting relief from the Bangko Sentral ng Pilipinas (BSP) in order to help their borrowers, who are mostly farmers and small businessmen. “Due to severe drought conditions affecting several provinces, borrowers in the affected areas could face difficulty in paying their loans,” the BSP said in a statement Thursday.
Dominguez changes mind, accepts Finance post The Standard 20th May 2016
A former Agriculture secretary and close friend of incoming President Rodrigo Duterte had a change of heart Thursday and accepted the post as Finance secretary after initially turning down the post. Carlos Dominguez III, who headed the finance committee of Duterte’s presidential campaign, had been one of the first to be offered a job in the new president’s Cabinet, but had turned it down “for personal reasons.” A member of Duterte’s transition team, Dominguez last week presented the incoming government’s eight-point economic agenda. Salvador Panelo, Duterte’s designated press secretary, gave no reason for Dominguez’s change of heart. Also named Thursday to the Cabinet was lawyer Vitaliano Aguirre II, who was tapped to head the Justice Department. Confirming that he had accepted the post, Aguirre vowed to give priority to cases involving illegal drugs and corruption when he takes over the department in July.
Financial firms urged to sign up for US tax monitoring law The Philippines Star 20th May 2016
A total of 250 onshore financial firms have so far registered with US tax authorities for the implementation of a US law requiring reports on American accounts, but the Bureau of Internal Revenue (BIR) said others still have time to do so. In an advisory on its website, BIR said the Foreign Account Tax Compliant Act (FATCA) would not be in force in the country until ratified by the Senate.The Philippines and the US signed in July last year the implementing rules of the intergovernmental agreement (IGA) for the execution of FATCA. FATCA is a law that requires global financial firms to exchange information on American bank and financial accounts with the US Internal Revenue Service to crackdown on tax evaders.
IMF urges Duterte gov’t to repeal bank secrecy law to improve tax collection Inquirer 17th May 2016
Lifting the bank secrecy law is one of the tax measures that should be implemented by the incoming administration if it wanted to improve tax collections and shore up revenues, according to the International Monetary Fund (IMF). “Elimination of banking secrecy is of the utmost importance. Current provisions for taxing interest, in particular, differ widely and randomly, across holders, issuers, maturities, and currencies. These withholding provisions should be unified, particularly in light of the increasing integration of the Philippine financial sector with the rest of Asean,” the IMF said in its tax reform recommendations to the Department of Finance (DOF). In turn, the DOF is working on a comprehensive tax reform package it will again pitch for consideration of the incoming Duterte administration.
BSP to require banks to raise IT standards Manila Times 17th May 2016
The central bank will require financial institutions to put in place higher standards of information technology (IT) as part of a stronger defense strategy against cybercrimes. “Financial institutions everywhere are routinely being attacked by cyber criminals. So the important thing is the quality of the cybercrime prevention programs that is why we are trying to strengthen the defenses Bangko Sentral ng Pilipinas (BSP) Deputy Governor Nestor Espenilla Jr.,” told reporters on Tuesday. “The best thing to do now is to make the system strong to prevent breaches,” he said. Espenilla said the BSP is now working on supplemental or additional regulations to strengthen and increase the level of maturity of Philippine banks and other financial institutions in dealing with various issues, for instance cybercrimes.
Food & Agriculture
Aquino signs law on farm tourism Business World 19th May 2016
President Benigno S. C. Aquino III has signed into law a bill that would allow farm owners to earn additional income from tourism. Mr. Aquino last Monday signed Republic Act 10816 or the “Farm Tourism Development Act of 2016,” which recognizes that “tourism, coupled with agriculture extension services, can disseminate the value of agriculture in the economic and cultural development of the country,” according to a news circular issued on Thursday. RA 10816 is a consolidation of Senate Bill No. 3002 and House Bill No. 5299, which the Senate and House approved on February. The law defines farm tourism as “the practice of attracting visitors and tourists to farm areas for production, educational and recreational purposes.” Farm tourism can help supplement incomes in rural areas, where poverty rates are highest.
Farm tourism law in limbo sans Aquino’s signature Manila Bulletin 16th May 2016
Senate agriculture and food committee chief Senator Cynthia Villar yesterday urged President Aquino to sign into law the bill promoting farm tourism in the country. Villar said she believes that Senate Bill 3002 or “An Act providing for the development and promotion of farm tourism in the Philippines and for other purposes”, would be a major contributor in bringing back the glory days of agriculture in the country due to its potential to increase the income of people involved in agriculture.
Neda official wants Iloilo to diversify, urges planting of high-value crops BusinessMirror 25th May 2016
The demand for high-value crops, like cacao and coffee, is insatiable and the regional office of the National Economic and Development Authority (NEDA) here claimed it is high time they start convincing Ilonggos to grab this opportunity. Neda Regional Director Ro-Ann Bacal said coffee and cacao have a lot of potentials in terms of by-products. “We have to start convincing people they should also consider shifting or use their other land resources for planting cacao and coffee products,” she said. And while they are growing these crops, she said, farmers should be capacitated on the by-products that could be derived from the processing. “That is where home-based or small and medium industries will start growing,” she added. Iloilo is known for its rice and corn crops, as well as livestock.
SMC unfazed by Duterte’s liquor ban BusinessMirror 21st May 2016
A possible liquor ban all over the country, if and when imposed by presumptive President Rodrigo R. Duterte, would not affect how San Miguel Corp. (SMC) does business in the Philippines. Duterte said he is planning to impose the ban starting 2 a.m., but the sale of alcohol could be prohibited as early as 10 p.m. SMC is the largest beer maker in the country. Its core businesses include San Miguel Brewery Inc., Ginebra San Miguel Inc., San Miguel Pure Foods, Co. Inc. and San Miguel Packaging Group. Later on, it diversified into power, oil, telecommunications, banking and infrastructure. “SMC is No. 1 in the Philippines. We have a stable business. If there will be a liquor ban, ang tingin ko hindi liliit ang consumption, kasi bibilisan lang nila ang pag-inom,” said SMC President and COO Ramon S. Ang.
Private traders no longer to import rice Business World 18th May 2016
The next government will bar private traders from importing rice and aims to stamp out rampant smuggling of the grain into the country, fueling trader speculation of reduced demand from the world’s third-biggest buyer of the grain. Rice industry groups that have been complaining of the current government’s apparent lack of will to curb smuggling -- consequently, eroding farmers’ incomes -- welcomed the move.
New Philippines govt to ban private sector rice imports Bangkok Post 18th May 2016
The new Philippines administration will bar private traders from importing rice and stamp out rampant smuggling of the cereal into the world's third-biggest importer of the grain, incoming Agriculture Secretary Emmanuel Pinol said. The task of importing rice to ensure food security will now be solely in the hands of the state grain agency, the National Food Authority (NFA), Mr Pinol said in a radio interview after the announcement of his appointment by President-elect Rodrigo Duterte on Tuesday.
Piñol bares 3 program components for agriculture Sun.Star 18th May 2016
The incoming Department of Agriculture secretary, former Cotabato Governor Emmanuel “Manny” Piñol laid out this early his initial plans for the country’s agriculture industry’s direction through a three major program components. Firm with his commitment on the marching order imposed by President-elect Rodrigo R. Duterte to secure food availability and affordability to Filipinos and stop corruption in the department, Piñol told Sun.Star Davao in a phone interview that he already identified three major components to focus on as an immediate intervention to assist farmers: Fast and effective agricultural technology-transfer to farmers, easy access to financing and efficient marketing for farmer’s produce. “My task is to make sure that there will be more food for the Filipinos and improve the lives of our farmers and I have initially identified three components on how to achieve that,” Piñol said who is a practicing farmer himself.
Industry group urges Duterte to prioritize local agriculture over foreign investors Inter Aksyon 17th May 2016
A Duterte government should prioritize the “protection and … the promotion of the development of local agriculture” and stop “granting unwarranted incentive(s)” to foreign investors in the sector, an industry group said Tuesday. The Samahang Industriya ng Agrikultura or SINAG, welcomed the incoming administration’s plan, as stated in its eight-point economic agenda, to “pursue a genuine agricultural development strategy by providing support services to the small farmers to increase their productivity, improve their market access, and develop the agricultural value chain by forging partnership with agribusiness firms.”
Muslim officials laud Duterte’s choice of Piñol as DA secretary Manila Bulletin 17th May 2016
Muslim executives on Tuesday (May 17, 2016) lauded incoming President Rodrigo Duterte’s choice of former North Cotabato Governor Manny Piñol as agriculture secretary, saying the appointee “deserves a break” to flesh out his dream for optimum cultivation of vast idle lands in Moro communities.
Incoming Agri chief wants to retake control of NFA, other agencies from Palace Phil Star 17th May 2016
Incoming Agriculture Secretary Emmanuel Piñol will push for the rescinding of President Aquino’s executive order (EO) that transferred the National Food Authority (NFA) and three other agencies to the Office of the President from the Agriculture department. Piñol said the supervision of the NFA, the National Irrigation Administration (NIA), the Philippine Coconut Authority (PCA) and the Fertilizer, and Pesticide Authority (FPA) should be returned to the Agriculture department to ensure well-coordinated policies.
Firms apply for GM crop import permits Business World 15th May 2016
The Philippines has received six new applications to breed and import genetically-modified (GM) seeds and crops after a new regulatory framework for their safe handling took effect on April 15. Monsanto Philippines, Inc. applied for five permits while Bayer Philippines, Inc. sought government approval for one, Merle B. Palacpac, head of National Plant Quarantine Services Division of the Bureau of Plant and Industry (BPI) told reporters on Thursday.
Agri boost laid out Sun Star 12th May 2016
The Mindanao business community laid out policy directions the next administration should focus to further boost the development of the agriculture sector in the island. Mindanao Development Authority (Minda) Investment Promotions and Public Affairs Office director Romeo Montenegro said that some of the policy directions the next administration should focus in agriculture are tapping of the idle agricultural lands, link between the small and big farmers and access to financing by farmers.
Government wants students to learn climate-smart agriculture Business Mirror 12th May 2016
The Philippine Rice Research Institute (PhilRice) said it recently trained 47 high-school teachers from various schools across the country to teach climate-smart agriculture and rice production to students in the next academic school year. The attached agency of the Department of Agriculture said the training is part of its efforts to integrate lessons on climate-smart rice agriculture in the curriculum of participating schools. The training was under the PhilRice’s Infomediary Campaign, a youth engagement in agriculture initiative.
Health & Life Sciences
Duterte favors medical marijuana use Inquirer 24th May 2016
Presumptive President-elect Rodrigo Duterte has expressed his support for the use of medical marijuana but thumbed down calls to allow recreational marijuana. The tough-talking mayor, whose campaign is hinged on busting drugs and criminality, said that modern medicines already use medical marijuana as an ingredient. “Medical marijuana, yes, because it is really an ingredient of modern medicine now. There are medicines right now being developed or already in the market that [contain] marijuana as a component but used for medical purposes,” he said in a press conference.
As payouts rise, PhilHealth turns to data Gov Insider Asia 18th May 2016
PhilHealth, the Philippines health insurance agency, is using data to track rising payouts and cut waiting times. Benefit payments increased by 41% in 2014, its annual report says. This was followed by a 24% increase last year. These increases are driven largely by an expansion in the benefits offered by the government – with more citizens covered, larger payouts made and a wider range of hospitals included in the scheme. Jovita Aragona joined PhilHealth in June 2015 as Senior Vice President and Chief Information Officer. Seconded to the agency by the Secretary of Health, she is using data to track these payments and ensure value for money.
Philippines president-elect Rodrigo Duterte says he will defy Church with three-child policy ABC News 23rd May 2016
PHILIPPINES - Philippine president-elect Rodrigo Duterte says he will defy the Roman Catholic Church and seek to impose a three-child policy. One of Mr Duterte's aides said the president-elect will aggressively implement the country's family planning law to push his economic growth agenda. Mr Duterte is pushing for "rapid and sustained implementation" of the Responsible Parenthood and Reproductive Health Act, said Ernesto Pernia, an economic adviser to the tough-talking 71-year-old.
Smoke-free Philippines eyed Sun Star 19th May 2016
DAVAO, The Philippines - The Davao City Anti-Smoking Task Force is looking forward to see a smoke-free Philippines now that there are plans to replicate some of the city's ordinances in the entire country. Anti-Smoking Task Force chairperson Doctor Domielyn Villareiz, during Thursday's I-Speak forum at the City Hall conference room, said they will recommend some points for better implementation if Davao City's Comprehensive Anti-Smoking Ordinance will be replicated in the country. She recommended the amendment of the Republic Act 9211 (Tobacco Regulation Act of 2003), as it is not in compliance with the International Treaty on Tobacco Control. Villareiz also recommended the removal of the Philippine Tobacco Institute in the Inter-Agency Committee on Tobacco, saying that one cannot have the tobacco industry to oversee the implementation on tobacco control.
Risa Hontiveros finally wins Senate seat: 'We defied gravity' Rappler 19th May 2016
MANILA, Philippines - The Commission on Elections (Comelec), sitting as the National Board of Canvassers officially proclaimed Ana Theresia "Risa" Hontiveros as a senator of the Philippines on Thursday, May 19, or 10 days after the elections. Hontiveros served as Akbayan representative from 2004 to 2010, and took her oath of office as director of the Philippine Health Insurance Corporation (PhilHealth) in June 2015. Despite her short stint at PhilHealth, universal health care has been at the forefront of Hontiveros' 2016 campaign.
PH to host APEC workshop on dev't of Herbal Medicine Database GovPH 18th May 2016
QUEZON CITY, May 18 -- The Philippines, through the Department of Science and Technology (DOST)-Philippine Council for Health Research and Development (PCHRD), will host the Asia-Pacific Economic Cooperation (APEC) Workshop on the Development of Herbal Medicine Database in Asia Pacific Region on 28 to 29 June 2016 at Hotel Jen Manila. The two-day workshop will discuss strategies on establishing a Herbal Medicine Portal in the Asia Pacific region, which was proposed and supported during the 2014 and 2015 APEC Policy Partnership on Science, Technology and Innovation (APEC-PPSTI) meetings in China and Philippines respectively. The creation of an internet-based portal of scientifically-validated herbal medicine information hopes to improve access to information on herbal medicine in the Asia Pacific and identify areas of research on herbal medicine which can be a basis for research collaboration. The Herbal Medicine Database will also help in establishing a network of researchers and information providers working on herbal medicine in Asia Pacific.
HIV-AIDS prevention effort wanting–HRW BusinessMirror 18th May 2016
While generally lauding the effort of the Philippines to combat the spread of the human immunodeficiency virus (HIV) infection and acquired immune deficiency syndrome (AIDS), the Human Rights Watch (HRW) said there is a need for urgent action to prevent transmission of the deadly virus among men who have sex with men (MSM) and people who inject drugs (PWID). “Awareness about HIV-AIDS is important. But the HIV emergency in the Philippines demands urgent action and making the so-far dangerously overlooked epidemic among males who have sex with men and those who inject drugs a top priority,” HRW said in a statement. The US-based human-rights group issued the statement in reaction to the government’s observance of the world’s first “AIDS Hour” on May 14, during which Health Secretary Janette Garin said the awareness-raising event was “a concrete example of the Philippines doing [its] part in the global effort against HIV and AIDS.” HRW said raising awareness is indeed a key part of tackling the Philippines HIV epidemic, now the fastest-growing in the world. However, the group said by omitting from HIV-prevention measures MSM and PWID, AIDS Hour missed the opportunity to educate and assist people at highest risk of contracting the virus.
Robinsons takes majority control of Generics Pharmacy PhilStar 18th May 2016
MANILA, Philippines – Robinsons Retail Group, the retailing arm of the Gokongwei Group, has acquired 51 percent of The Generics Pharmacy (TGP), a family-owned generics drugstore chain with over 1,800 stores. The move widens the Gokongwei Group’s footprint in the drugstore business after acquiring South Star Drug in 2012. With the combined network of TGP and South Star Drug, Robinson Retail’s drugstore network will now grow to nearly 2,200 stores nationwide, the largest in terms of the total number of outlets in the country.
More Pinoy nurses seek US jobs PhilStar 16th May 2016
MANILA, Philippines – Filipino nurses seeking jobs for the first time in the United States went up by 16 percent in the first quarter, Cebu Rep. Gerald Anthony Gullas Jr. said. Gullas, vice chairman of the House committee on higher and technical education, said 1,377 Philippine-educated nurses took the US licensure examination for the first time from January to March this year, hoping to practice their profession in the US. The figure is up 16.4 percent compared to the 1,183 Filipino nurses who took the National Council Licensure Examination (NCLEX) for the first time in the same period in 2015, he said. Among foreign-educated nurses, Filipinos remain the most zealous job-seekers in America, where registered nurses (RNs) receive a median annual pay of $66,640 (P3.1 million), or an hourly rate of $32.04 (P1,492), according to the US Bureau of Labor Statistics (BLS). In occupational outlook, the BLS said the US would need 439,300 additional nurses plus 53,400 advanced practice nurses between now until 2024. The BLS said employment growth will occur for a number of reasons, including the surge of newly insured patients due to Obamacare, or the US Affordable Care Act; the stronger emphasis on preventive care; and the rapidly increasing number of chronic conditions, such as diabetes and obesity.
Outpatient facility seen as key player in med tourism Manila Times 14th May 2016
Touted to become a key stakeholder the growing medical tourism industry in the Philippines, Centuria Medical Makati has opened its doors beside the luxury condominiums in Century City. “Century Property’s world-class outpatient center is now on soft opening,” Terrie Fucanan-Yu, Head of Corporate Communications of Century Properties Group, Inc. proudly shared with The Sunday Times Magazine. The 28-storey health facility aims to become the premier outpatient center for global health and wellness in the Philippines, with its mission-vision in “transforming lives, enhancing ideals, and taking healthcare delivery into the new century.” Housing more than 500 clinics, Centuria Medical Makati was designed to provide an efficient clinic environment for doctors and equally, hassle-free patient-centered services, which on the whole will allow the institution to further boost the Philippines’ goal of becoming a medical tourism hub in Asia
PH ranks 8th in world as ‘Medical Tourism Destination’ The Manila Times 14th May 2016
In 2015, the Philippines was ranked eighth among the top medical tourism destinations in the world, ahead of countries such as Japan and France, according to a list compiled by the International Healthcare Research Center and the Medical Tourism Association (MTA), a global non-profit association for medical tourism and international patient industry which represents healthcare providers, governments, insurance companies, employers and other buyers of healthcare.The Department of Tourism (DOT), Department of Health (DOH) and Department of Trade and Industry – Board of Investments (DTI–BOI) have a joint programme to promote Philippine medical tourism. To date, medical tourism in the Philippines caters to approximately 80,000 to 250,000 patients or clients annually. As of the DOT, DOH, DTI-BOI’s latest count, 62 hospitals around the country are now internationally accredited.
ICT
Filipino Workers Are Seizing the Means of Communication in the Fight Against Verizon The Nation 25th May 2016
It’s an open secret that Verizon outsources its customer-service phone operations. But now that the telecom giant’s wireline workforce is on strike, paralyzing 13,000 US call-center jobs indefinitely, frustrated customer complaints have flooded subcontracted overseas operators, triggering restive feedback from exhausted workers in Asia, and perhaps extending the Communications Workers of America (CWA) picket lines to the Philippines. The contact began when a Filipino call-center workers’ advocacy group, BIEN Pilipinas, reached out to US strikers via Facebook. A few messages later, a CWA delegation was en route to the Philippines to see who was doing the jobs that they weren’t. The delegation of union staff and call-center workers met a small group of Teletech Nova workers in early May, along with BIEN activists, left-leaning union Kilusang Mayo Uno (KMU), and global labor federation UNI. They discussed the labor conditions at local third-party call centers and began a budding trans-Pacific collaboration. When attempting to visit a Verizon building near Manila on May 11, however, the group was menacingly confronted by a group of armed men, pursued outside, and later briefly detained by a police “SWAT team,” according to CWA’s documentation. The US activists departed safely, but the Teletech workers have since reported retaliation against at least two staffers. (CWA recently filed a formal unfair-labor-practice charge.)
Newly formed agencies to aid Duterte in improving PH's internet service Sun.Star 25th May 2016
TWO senators have expressed optimism for an improved internet service as the country heralds the incoming administration of presumptive President Rodrigo Duterte with two new agencies that will aid the regulation of telecommunications industry and competition in general. The creation of Department of Information and Communications Technology (DICT) and Philippine Competition Commission (PCC), both approved at the twilight of outgoing President Benigno Aquino III's term, is expected to encourage competition and impose stricter regulation to yield better service from telcos. Duterte has threatened the players in the industry for their lackluster internet service, considered the slowest in the region. He said he will open up the market to foreign entities if the telcos do not shape up. "You improve the [internet] services or I will open the Philippines to foreign competition. Pasok lahat. Then it will bring down [prices] and increase [internet speed]" Duterte warned.
Philippines set to improve customs administration with ICT solution Enterprise Innovation 24th May 2016
The Bureau of Customs in the Philippines is spearheading an initiative that would spur ICT adoption within government organizations. The agency has recently partnered with Microsoft Philippines to streamline productivity in customs administration, ensure the security of data, and promote transparency. “We are committed to annihilating alleged controversies and corruption within our agency, and we believe we can empower everyone within the organization to be the best service to our constituents through technology and mobility," said Customs Commissioner Alberto D. Lina. "By adopting a world-class technology, we will improve our efficiency in public service while strengthening the integrity and security of the data and information of the public." The recent attacks against government agencies, including the massive breach against the Commission on Elections (Comelec) website which exposed data of 55 million voters, has drastically affected public trust, which Lina believes must be addressed to be able to serve the public better.
Duterte warns telcos: Shape up or face foreign competition CNN 23rd May 2016
Presumptive president has a stern warning to telecommunications companies (telcos) — provide faster Internet service or foreign investors will be allowed to do the job. Duterte said on Sunday (May 22) that opening the country for telcos competition would bring down prices and improve services. The incoming president, however, failed to say how he planned to do this, as the Constitution set a cap on foreigners owning a company to 40%. It's a threat Duterte had consistently on what he called a cartel that controlled prices at the expense of consumers. The Philippines has one of the slowest Internet speeds in the world. In Asia, the country is second to last, just better than the insurgency-ridden Afghanistan.
Aquino signs measure forming DICT Business World 23rd May 2016
The measure forming a Department of Information and Communications Technology (DICT) -- which has been advocated by the business community for nearly a decade -- was finally signed into law yesterday by President Benigno S.C. Aquino III. Executive Secretary Paquito N. Ochoa, Jr. and Communications Secretary Herminio B. Coloma, Jr. separately confirmed the enactment of Republic Act (RA) No. 10844, or the “Department of Information and Communications Technology Act of 2015,” nearly two weeks after Malacañang received it last May 10. The new law provides that the DICT, which will be carved out of the existing Department of Transportation and Communications (DoTC), will be the “primary policy, planning, coordinating, implementing and administrative entity of the Executive Branch... that will plan, develop and promote the national ICT development agenda.”
Talks start for bureaucracy-wide fiber-optic link Business Mirror 20th May 2016
The National Grid Corp. of the Philippines (NGCP) and the Information and Communications Technology Office (ICTO) have commenced discussions on the possibility of utilizing the former’s fiber-optic cable network to link and provide Internet service to all government agencies in the country. “NGCP is in discussion right now with ICTO. We hope the talks between them would progress,” Commissioner Jose Vicente B. Salazar said in an interview of the Energy Regulatory Commission (ERC). ICTO, the government’s lead agency on ICT and related matters, had approached the ERC to facilitate a dialogue with NGCP on the matter.
BSP to banks: Toughen up vs cyber crime Philstar Global 18th May 2016
The Bangko Sentral ng Pilipinas (BSP) is set to order banks to beef up their cyber crime prevention programs in light of heightened attacks after the $81- million bank heist last February. BSP Deputy Governor Nestor Espenilla Jr. said the bank regulator is now working on supplemental or additional regulations to further strengthen and increase the level of maturity of Philippine banks and other financial institutions. “Financial institutions everywhere are routinely being attacked by cyber criminals. So the important thing is the quality of the cyber crime prevention programs that is why we are trying to strengthen the defenses. The best thing to do now is to make the system strong to prevent breaches,” he said.
Amazon Web Services Establishes Office in the Philippines The Standard 16th May 2016
Amazon Web Services (AWS) recently announced that Amazon Web Services Philippines (AWS Philippines) has opened an office in Manila to further support the rapidly growing customer base across the Philippines. The office is now open and operational and is supporting businesses of all sizes, from startups and small-and-medium sized businesses to large enterprises and public sector customers, as they make the transition to the AWS Cloud. “As AWS crosses the 10th year milestone of pioneering cloud computing, we continue to focus on driving rapid innovation of our services and inventing on behalf of our customers,” said Shane Owenby, Amazon Web Services managing director of Asia Pacific. “We are pleased to increase the investment and commitment in the Philippines with the AWS Philippines office in Manila and the hiring of local talent. We are excited to work with even more Philippines-based startups and enterprises to help them save cost, drive innovation and extend their global reach quickly, while maintaining high levels of reliability and security.”
iQor Philippines on Pace for Record Expansion in 2016 Sys-Con Media 15th May 2016
iQor, a global provider of integrated customer and product support services, today announced that the company has embarked on a significant expansion initiative that will add over 175,000 square feet of additional contact center space across the Philippines. Upon completion, the company will add an additional 3,150 high-tech training and production workstations. “The Philippines is a tremendous market for us. As one of the first movers, we’ve continued to invest in the region and have been able to continue to raise the bar in performance,” says Gary Praznik, iQor’s COO, Retail and Consumer Services. “Our growth can be traced directly back to the hard work and dedication of our entire Philippines family.”
E-commerce seen as major growth driver by 2020 The Manila Times 15th May 2016
The Department of Trade and Industry (DTI) said that the Philippine E-Commerce Roadmap (PECR) 2016-2020 will boost the e-commerce industry to become a major economic growth driver in the country. In a statement, the DTI said the roadmap, which aspires to see the e-commerce industry contribute 25 percent or one fourth of the country’s gross domestic product by 2020, would help propel the e-commerce industry’s growth, supporting the entry of about 100,000 micro, small, and medium enterprises (MSMEs). The roadmap will help the Philippines to catch up with the fast internet penetration and growing usage in the country, “currently estimated to have the fastest growing internet population in the world, with recent statistics estimating 530 percent growth over the past five years,” the DTI said.
Philippine call centers on the verge of change The Standard 14th May 2016
Call centers and business process outsourcing companies are on the verge of change to meet the demands of the millennial generation, according to an industry expert who provides communications solutions for the IT-BPO industry. “BPOs are evolving. It is being customer-driven. It is customers driving the change, the transformation,” Edgar Doctolero, country manager of Avaya Philippines Inc., says in an interview at Marriott Hotel Manila in Pasay City. Doctolero is in charge of a 25-man team at Avaya Philippines’ sales and marketing operations. Before joining Avaya, he held country sales positions in Cisco Systems and Datacraft.
Globe taps TV-based broadband technology to service remote areas BusinessWorld 23rd May 2016
Globe Telecom, Inc. along with the Information and Communications Technology Office of the Department of Science and Technology (DoST), announced that it will adopt the TV white space frequency for broadband use in the country. The company said that the initiative is expected to provide an alternative wireless network that will provide data connectivity in far flung areas in the Visayas and Mindanao. As of the moment, Globe is pilot-testing the use of the frequency for broadband service in several areas, including Bohol and Cebu. According to the telecommunications group, the TV white space frequency will maximize available spectrum given rapid increases in data consumption amid growing smartphone penetration.
Puregold forays into online shopping Philstar Global 19th May 2016
Puregold Price Club Inc. of retail tycoon Lucio Co is venturing into e-commerce to capitalize on the popularity of shopping using the Internet. Puregold president Vincent Co said the company’s foray into online shopping would start initially with Tindahan ni Aling Puring (TNAP) members who are mostly sari-sari store owners. “We want to have a niche market first before we go full blast. Customers now are very demanding. So based on our research, sari-sari store owners are usually the ones who cannot leave their houses instantly. Should they leave, they have to close their stores and that means less sales for them,” Co said in an interview yesterday following Puregold’s annual sari-sari store convention.
Singapore, Philippines central banks move to tighten cyber security Reuters 17th May 2016
Singapore's central bank has asked banks to maintain a high level of security for their critical IT systems following recent cyber attacks using the SWIFT financial messaging system. In the Philippines, the central bank was crafting more regulations to help banks and other financial institutions fend off cyber heists and minimize damage after any systems breach, a senior official said. The actions come after Vietnam's Tien Phong Bank said earlier this week it had interrupted an attempted cyber heist that involved the use of fraudulent SWIFT messages, the same technique at the heart of February's massive theft from the Bangladesh central bank.
Infrastructure
Infra spending through 2017 to boost economy Manila Times 14th May 2016
The Philippine economy is set to receive a major boost from increased infrastructure spending by the incoming government this year until 2017 at least, which should in the long term ease transportation bottlenecks and foster further growth in other industries, the Oxford Business Group (OBG) said in its latest report. “In the Report: Philippines 2016” released on Friday, OBG Chief Executive Officer (CEO) and Editor-in-Chief Andrew Jeffreys said the Philippine economy has been in a stable uptrend since 2010—growing by an average of 6.2 percent in 2010 to 2014 and 5.8 percent in 2015—despite the dry spell that affected the farm and food-processing sectors. “With an improved long-term outlook, we expect the economy to continue expanding on the back of continued government investment in infrastructure until 2017,” Jeffreys said.
Villar firms won’t bid for PPP projects BusinessWorld 23rd May 2016
VISTA LAND and Lifescapes, Inc. and other companies owned by the Villar family will not participate in the next administration’s public-private partnership (PPP) projects, according to incoming Public Works Secretary Mark A. Villar. “Vista Land will not bid in PPP projects. If there’s a clear conflict of interest, they cannot bid,” he said in an interview aired on ABS-CBN News Channel on Monday morning. The Villar group has no existing PPP projects, although it was part of a consortium that had submitted qualification documents for the P123-billion Laguna Lakeshore Expressway and Dike project last year. The Villar-led Prime Asset Venture, Inc. was included in the Alloy-PAVI Hanshin LLED Consortium, along with Malaysia’s MTD Group, Korean Hanshin Construction Corp. and Korea Rural Corp. However, the group did not submit a bid for the PPP project. Mr. Villar, who was previously president of Crown Asia Corp., also said his family’s companies would likely not participate in government infrastructure bids to avoid conflict of interest, when he takes over the Public Works portfolio. “We cannot benefit from my position in any way shape or form and I will not allow it,” he said. Asked if Vista Land will halt land acquisitions during his term as DPWH Chief, Mr. Villar said: “Our real estate company has the right to conduct its business, but there will be no special benefits from the DPWH.”
Rep. Villar ‘humbly accepts’ Duterte’s DPWH offer Business World 17th May 2016
AMID the widely anticipated composition of Rodrigo R. Duterte’s Cabinet, reelectionist Las Piñas Rep. Mark A. Villar, who had just won a third term, said he has accepted the presumptive president-elect’s offer to be his Public Works Secretary. Mr. Villar’s selection, in particular, generated mixed responses on social media. Mr. Villar is the son of former senator and Nacionalista Party (NP) President Manuel B. Villar, Jr., and Senator Cynthia A. Villar. Before entering public office, the younger Mr. Villar was president of Crown Asia Properties, Inc., a subsidiary of his father’s Vista Land enterprise. He earned his bachelor’s degree in economics, political science and philosophy from the University of Pennsylvania, and his master’s degree in business administration from the University of Chicago Booth School of Business.
|
