| Regional Affairs
Incoming Philippine minister rules out bilateral talks with China before tribunal decision Reuters 10th Jun 2016
The Philippines has brought a case at an international tribunal in The Hague contesting China's claims, a case rejected by China which wants to solve the issue bilaterally. "We should not pursue any bilateral talks at this time until we hear, or wait for, the outcome of the decision of the arbitral tribunal to come out," Yasay said in an interview with ABS-CBN news channel. Yasay's remarks follows advice from a former Philippine foreign minister and a U.S. security expert for President-elect Rodrigo Duterte not to hold unconditional bilateral talks with China to try to resolve the dispute. China said on Wednesday the Philippines had ignored a proposal for a regular talks mechanism over maritime issues, as it repeated that its door was always open to bilateral talks with Manila. China claims most of the waters, through which $5 trillion in ship-borne trade passes every year. The Philippines, Vietnam, Malaysia, Taiwan and Brunei have overlapping claims.
China asks the Philippines to quit UN arbitration, talk MSN 9th Jun 2016
China has asked the Philippine President-elect Rodrigo Duterte to withdraw the arbitration at a UN tribunal and return to bilateral dialogue to settle the territorial disputes over the strategic South China Sea. The Philippines should stop its arbitral proceedings and return to the right track of settling relevant disputes in the South China Sea (SCS) through bilateral negotiation with China, Foreign Ministry spokesman Hong Lei said yesterday. The ministry also issued a statement saying the dispute over the SCS should be settled through negotiations. The door is always open to bilateral negotiation, the statement said and asked Manila to stop turning its back on its agreement to settle disputes through negotiation and end the arbitral proceedings it had initiated against China. The Chinese comments came as the Philippines has brought a case at an international tribunal constituted under the UN Convention on Law of Seas (UNCLOS) at The Hague contesting China's claims over almost all of the South China Sea. China boycotted the tribunal, likely to deliver verdict this month, saying it will not recognise the judgement. Beijing expects the verdict to go against it.
National Affairs
10 days to a new dawn BusinessWorld 21st Jun 2016
He’s finding 6,000 replacements for key positions; wants public servants to serve and live simply; the government and the CPP-NDF will resume peace talks. He favors returning coco levy funds to the farmers; removing the age limit for employment; cleansing government of crime and corruption; restoring the death penalty for heinous crimes; ending contractualization; federalism through a constitutional convention. He’s against the rape of the ecology and the occupation of the country’s reefs and shoals in the West Philippine Sea. That’s just a whiff of the fresh air from the windows he’s opened.
Belmonte to support emergency powers for Duterte to solve traffic crisis CNN Philippines 21st Jun 2016
Metro Manila (CNN Philippines) — House Speaker Feliciano “Sonny” Belmonte Jr. on Tuesday expressed that he would support the call to give President-elect Rodrigo Duterte emergency powers to solve the traffic problem in Metro Manila. Duterte's cabinet members expressed the need to give the him such authority to solve the “traffic crisis,” which they said has cost the country ₱3 billion a day. Belmonte said any possible solution to traffic woes should be given a chance — this despite the possibility of becoming the Minority leader in the 17th Congress under Duterte administration.
Rodrigo Duterte Seeks Business Support for Philippine Constitutional Changes Wall Street Journal 20th Jun 2016
President-elect Rodrigo Duterte’s economic team met with business leaders here on Monday to rally support for a plan change the country’s protectionist constitution, a goal that has eluded past administrations. The Philippines’ economic fortunes have risen under the outgoing administration of President Benigno Aquino III, posting some of the highest growth rates in Asia. Many business leaders and policy makers—including some within Mr. Duterte’s camp—believe the Davao City mayor could accelerate growth further if he removes investment limits they say have stymied foreign money flows.
PHL gets improved score in budget transparency Business World Online 19th Jun 2016
THE PHILIPPINES improved in terms of transparency in the budget process under the Aquino administration, as assessed by the international Public Expenditure and Financial Accountability (PEFA) network, the government said over the weekend. In a statement, the Department of Budget and Management (DBM) said the country posted a satisfactory score in 19 out of 31 indicators covered under the 2016 assessment of the Washington-based unit, improving from eight logged in 2010. The PEFA is a coalition among seven donor agencies and international financial institutions that monitors a country’s systems based on 31 indicators that touch on budget reliability, transparency of public finances, management of assets and liabilities, policy-based fiscal strategy and budgeting, predictability and control in budget execution, accounting and reporting, and external scrutiny and audit. In particular, the country stood “strong” in terms of transparency, policy-based budgeting, and asset and liability management, according to the Budget department.
Duterte, Robredo to hold separate inaugurations CNN Philippines 15th Jun 2016
President-elect Rodrigo Duterte and Vice President-elect Leni Robredo are likely to hold separate inauguration rites, the spokesmen for the two incoming leaders said Wednesday.“We were informed by the team of President-elect Rody Duterte about their preference to hold the inauguration separately,” Boyet Dy, Robredo's transition team head, said in a statement. "While we have been preparing for a joint inauguration, we respect their decision and will begin our own preparations for a simple and modest ceremony." Duterte and Robredo are to be sworn into office at noon on June 30, the start of their six-year term.
Duterte convenes Cabinet in Manila ABS-CBN 15th Jun 2016
President-elect Rodrigo Duterte convened his Cabinet in the capital for the first time on Wednesday, as he prepared to assume office at the end of the month. Dressed casually in a cotton shirt and jeans, Duterte met with his secretaries at the Philippine International Convention Center. Speaking to reporters after the 5-hour meeting, incoming Palace communications chief Martin Andanar said Duterte met with his Cabinet members by clusters before meeting them as a whole. ''He met the whole group. We had to be in one room so we could also chat so we could also familiarize with each other,'' Andanar said. Ernesto Abella, the newest spokesperson of Duterte, said the gathering was a "simple, informal meeting." "There was an introduction of new appointees," he said. "The whole meeting was basically about hearing from the various secretaries so that the incoming administration would be able to be more systematic and more coordinate and the departments would not act as silos."
Duterte's rainbow Cabinet challenges Manila elite The Straits Times 14th Jun 2016
Since the election of Davao City Mayor Rodrigo Duterte as the Philippine president in a landslide victory on May 9, the regional and international media have highlighted his outrageous remarks backing the extra-judicial killings of drug dealers, calling Philippine bishops critical of him "sons of whores", alleging that journalists were killed because they were corrupt and joking that he would have wanted to be first in line when an Australian missionary was raped, then murdered. None of these remarks has dented his domestic support. But they have attracted international attention and provided a one-dimensional view of Mr Duterte. The vice-presidential race was closer. Congresswoman Leni Robredo, with a reputation for fiscal probity and a simple lifestyle, narrowly defeated Senator Ferdinand Marcos Jr, the son of the former dictator Ferdinand Marcos, who ruled from 1965 to 1986. Mr Duterte has indicated that Ms Robredo will not be given any role in the new administration as he had favoured the election of Mr Marcos.
DOH, DOT, DTI secretaries named The Philippine Star 14th Jun 2016
DAVAO CITY — President-elect Rodrigo Duterte has chosen the people who will lead the Health, Tourism and Trade departments. Newly appointed deputy presidential spokesman Ernesto Abella announced Duterte’s choices for the three agencies Monday night through state-run television station PTV-4.
Lawmaker pushes for creation of ‘efficiency’ office Inquirer 14th Jun 2016
A lawmaker is pushing for the creation of a Philippine Efficiency Office that will help sift through laws and regulations that excessively burden businesses and the public with unnecessary rules. Senator Paolo Benigno “Bam” Aquino IV said the measure, called the Philippine Efficiency Office bill, which would be filed in the 17th Congress, would primarily institutionalize the National Competitiveness Council’s Project Repeal—an initiative seeking to repeal and amend existing agency regulations and department orders that are outdated, unnecessary or redundant.
NCC takes steps to repeal nearly 4,000 redundant laws BusinessWorld 13th Jun 2016
EIGHT GOVERNMENT agencies have expressed their commitment to reducing red tape, which impedes the competitiveness of doing business in the country, with nearly 4,000 issuances in the process of being repealed. In a statement released to journalists on the 1st Repeal Day, an event meant to formalize the commitment of the eight agencies, the National Competitiveness Council said 3,959 issuances would undergo a repeal, a delisting, or an amendment.
US, UK, German envoys visit Duterte in Davao Rappler 13th Jun 2016
The ambassadors of the United States, the United Kingdom, and Germany separately visited Philippine President-elect Rodrigo Duterte in Davao City on Monday, June 13. "Courtesy call lang po (It's just a courtesy call)," Duterte aide Christopher "Bong" Go said in a text message at 8:44 pm, when asked about the general agenda of the meetings on Monday. The meetings happened at the so-called Malacañang of the South, or the Department of Public Works and Highways Depot Compound in Panacan, Davao City. Duterte has met with other ambassadors, such as Chinese Ambassador to the Philippines Zhao Jianhua, after his landslide victory in the May 9 elections. At the same time, Duterte has also made negative statements about other countries. Before winning the presidency, for instance, Duterte warned that he is prepared to cut diplomatic ties with the United States and Australia after their ambassadors criticized his joke about the jailhouse rape of a missionary. On June 2, he also cursed the United Nations for failing to solve the conflict in the Middle East and not helping the "black people" in Africa.
NCC rolls out ‘Project Repeal’ to cut red tape in several government agencies Business Mirror 13th Jun 2016
The National Competitiveness Council (NCC) on Monday launched an initiative aimed at eliminating red tape in several government agencies and improving the country’s competitiveness. Dubbed as “Project Repeal,” NCC said it seeks to identify and streamline regulations that hamper doing business in the country. As Monday is considered “Project Repeal Day 1,” the NCC announced the initial repeal or amendment of 3,959 issuances across eight agencies: the Departments of Trade and Industry (DTI), Finance (DOF), Energy, Budget and Management (DBM), Tourism, and Labor and Employment, Securities and Exchange Commission, and Land Transportation Franchising and Regulatory Board.
Lawmakers support Duterte’s federalism plan via Cha-cha BusinessMirror 12th Jun 2016
LAWMAKERS from both houses of Congress are supportive of incoming President Rodrigo R. Duterte’s plan to change the form of government from republican to federalism through Charter change (Cha-cha). Incoming Rep. Raymund Villafuerte of Camarines Sur, in a statement, said the openness of the members of the House of Representatives and the Senate to federalism is a positive development that would truly “open the door wide” to a shift in the form of government. “The emerging consensus in both houses of Congress for constitutional reform opens the door wide to the long-overdue shift from our unitary system to the federal form of government under the Duterte presidency,” Villafuerte said. Earlier, Senate President Franklin M. Drilon said the majority of the senators are in favor of constitutional reform.
Backgrounds, Interests, and Links | Not just a list: Know much more about Duterte gov't's men and women InterAksyon.com 9th Jun 2016
Among the members of Rodrigo Duterte’s Cabinet is a former legislator whose yearly declared net worth never reached P100,000. The incoming President will also have an alter ego who was twice detained and tortured during Martial Law, while another incoming Cabinet member, who was a critic of the Arroyo admnistration, escaped from detention twice. Duterte will also have an official who was penalized by the Ombudsman over the unsual high number of unsolved killings in Davao City. An anti-Marcos human rights lawyer who is the son-in-law of a former Davao police chief and mayor of the city during the Marcos regime, will also be among the key officials of the new administration. There’s also a Duterte appointee who finished three master’s degrees at the age of 28 and another who owns commercial ships that were custom-built in Kure, a major shipbuilding city in Hiroshima, Japan. Who are they? What are their backgrounds, interests, and connections? Get to know more about Duterte’s men and women of power before they start (or continue or resume) working in the government on June 30.
3 labor laws wait for Duterte’s signature Manila Bulletin 9th Jun 2016
Three labor laws, including the proposed Anti-Age Discrimination Act, will be among the first laws which are expected to be signed by incoming President Rodrigo Roa Duterte after he assumes the presidency. Davao City Rep. Karlo Alexei Nograles, chairman of the House Committee on Labor, said he anticipates the signing of the Anti-Age Discrimination Law, the proposed Jobstart Law and the proposed expansion of Republic Act 9547, known as Special Program for Employment of Students Law. A total of six labor measures were passed by Nograles’ panel and were recently signed into law under the Aquino administration. The proposed Anti-Age Discrimination Act prohibits and penalizes employers from publishing or posting ads indicating age preferences, requiring applicants to declare their age, and declining application or laying off employees due to age. The proposed Jobstart law seeks to institutionalize the labor department’s JobStart Philippines Program to help the unemployed youth in finding jobs by enhancing their knowledge and skills acquired in formal education or technical training. The measure aims to cover at least 70,000 beneficiaries by 2020, Nograles noted. He explained that amendments to RA 9547, an Act Strengthening and Expanding the Coverage of the Special Program for Employment of Students (SPES), aims to expand existing government programs to require persons or entities employing at least 10 persons to employ poor but deserving students, out-of-school youth, dependents of displaced workers or would-be displaced workers due to business closures or work stoppages.
Duterte prefers con-con over con-ass The Philippine Star 9th Jun 2016
President-elect Rodrigo Duterte prefers to amend the Constitution through constitutional convention (con-con) rather than through a constituent assembly to allow experts to provide inputs, a lawmaker said yesterday. Quezon Rep. Danilo Suarez said Duterte also believes that a constitutional convention would dispel notions that he might impose his will on congressional allies who would form part of the constituent assembly. Members of the con-con can either be elected or appointed. While con-con delegates can come from various sectors including academe, a constituent assembly is composed of all members of the House of Representatives and the Senate. Duterte has been pushing for amendments to the 1987 Constitution to change the form of government from unitary to federal. He has also expressed readiness to amend some economic provisions to lure more foreign investments. Suarez said the convening of the con-con can be done as soon as possible as it would serve as the “initial stage” for federalism.
Customs
Changes under the Customs Modernization and Tariff Act: An Overview BusinessWorld 20th Jun 2016
(First of 5 parts) On 30 May 2016, President Benigno S. C. Aquino III signed Republic Act (RA) No. 10863, otherwise known as the Customs Modernization and Tariff Act (CMTA), which amends the Tariff and Customs Code of the Philippines (TCCP). It will become effective on 16 June 2016 which is 15 days after it was published in a major daily newspaper. From a historical perspective, the first piece of tariff legislation was passed by the United States Congress for the Philippines during the American regime. This was known as the Philippine Tariff Act of 1909 which gave birth to the imposition of tariff on goods coming from foreign countries and entering the Philippines.
Crackdown on corruption at Bureau of Customs looms Philippine Daily Inquirer 15th Jun 2016
Incoming Finance Secretary Carlos G. Dominguez has directed Bureau of Customs officials to stop corruption in the agency, alongside plans of its incoming chief to foster greater transparency. “President-elect Rodrigo Duterte is clear on his mandate to go after crime, drugs and corruption. The perception of Customs as the most corrupt agency has to stop,” Dominguez said in a transition meeting Monday attended by outgoing Bureau of Customs (BOC) Commissioner Alberto D. Lina and incoming BOC chief Nicanor Faeldon, among other BOC officials.
Customs law’s IRR up to next admin - Purisima Manila Bulletin 9th Jun 2016
The implementing rules and regulations (IRR) of newly-enacted customs law is now up to incoming officials Finance Secretary Carlos G. Dominguez III and Customs Commissioner Nicanor E. Faeldon. Outgoing Finance Secretary Cesar V. Purisima has instructed all DOF officials to let the incoming administration to review in advance and approve, once in office, the issuance of IRR for the Customs Modernization and Tariff Act (CMTA). “In the interest of ensuring a smooth transition, Purisima has instructed all DOF officials to clear all policy actions with the transition team of incoming finance secretary,” the finance department said in a statement Thursday. According to the DOF, the transition teams of Purisima and Dominguez are also in “close coordination” to ensure a smooth transfer of authority.
BOC: Certain beverage imports require nod of Office of the Commissioner Portcalls 22nd Jun 2016
The Philippine Bureau of Customs (BOC) is now requiring importers to obtain clearance from the Office of the Commissioner (OCOM) in order to secure the release of certain imported beverages, spirits, and juices. In a memorandum dated June 6, Customs Commissioner Alberto Lina said that effective immediately, all importations covered by the Harmonized System (HS) Codes 20.09, 22.01, 22.02, 22.03, 22.04, 22.05, 22.06, 22.07, and 22.08, including riders, will first need to get cleared by OCOM to have them released. HS Code 20.09 covers fruit juices including grape must as well as vegetable juices, unfermented, not containing added spirit, whether or not containing added sugar or other sweetening matter. HS Codes 22.01 to 22.08 include waters; beer made from malt; wine of fresh grapes, including fortified wines; vermouth and other wine of fresh grapes flavored with plants or aromatic substances; other fermented beverages, mixtures of fermented beverages and mixtures of fermented beverages and non-alcoholic beverages; undenatured ethyl alcohol of an alcoholic strength of 80% volume or higher; ethyl alcohol and other spirits, denatured, of any strength; and undenatured ethyl alcohol of an alcoholic strength of less than 80% volume, spirits, liqueurs and other spirituous beverages. All tax-exempt shipments as well Philippine Economic Zone Authority and Super Green Lane shipments do not need to secure OCOM clearance.
BIR, BOC heads unveil anti-corruption reforms The Manila Times Online 21st Jun 2016
The incoming heads of the country’s revenue-generating agencies on Tuesday said that tackling corruption in the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) will be their top priority when they step in on June 30. “The mandate of the President is to clean the bureau. Hopefully [we can do that],” Incoming Internal Revenue Commissioner Cesar Dulay told reporters on the sidelines of the Duterte administration’s consultation workshop with the business community here. In terms of revenue regulations, Dulay said that he might recall a recently released issuance of the current BIR chief that could subject property buyers and sellers to a tax probe aimed to gauge their financial capacity to acquire and keep real estate. Dulay said this kind of regulation involving a lifestyle check can act as a tool for harassment and corruption. Meanwhile, incoming Customs Commissioner Nicanor Faeldon said there is no tried and tested solution to corruption, but the new administration will try to address that by instituting reforms in the bureau. “I already stated the reforms that we are planning. The one we have to fast track is the computerization of Customs processes,” he said. Faeldon recently suggested several reform measures to promote transparency in the BOC, such as using the United States trade transparency unit as a model of best practice in order to deliver more accurate pricing of products from other countries. Instead of Customs collections targets based on a percentage of gross domestic product (GDP), Faeldon said performance indicators should also contain grading on ease of doing business and facility of trade. He further encouraged graveyard shifts and 24/7 operations to improve the BOC’s level of service. Faeldon also said that the new administration wants to remove the compulsory utilization of brokers for shipments, because some unscrupulous brokers are using their services to smuggle commodities to the country.
Customs gears up for CMTA 3-year road map, focuses on personnel development Department of Finance Bureau of Customs website 15th Jun 2016
Customs Commissioner Alberto Lina led top and middle level officials of the Bureau of Customs in mapping out the agency’s 3-year strategic implementation plan for the newly signed Customs Modernization and Tariff Act, stressing importance not only with the operational provisions of the new law but highlighting a fair compensation plan for its employees. Actively participating during the 2-day workshop, the Commissioner said that reorganization of the Bureau is inherently provided in the CMTA and instructed BOC officials to immediately create a technical working group which will closely study the impending change in functions and organizational structure of the Bureau.
Lina bent on drafting Customs, tariff law IRR Manila Bulletin 15th Jun 2016
Bureau of Customs (BOC) Commissioner Alberto Lina is standing pat on his decision to draft the implementing rules and regulations (IRR) for the recently signed Customs Modernization and Tariff Act (CMTA) despite objections from port operators and a stern warning from incoming Finance Secretary Carlos Dominguez. “We are going to keep drafting the IRR for turnover to the incoming Customs chief and Finance secretary for review. He [Lina] is still the functioning commissioner,” BOC spokesperson Belle Maestro told the Manila Bulletin.
Customs starts transition Business World 14th Jun 2016
Customs Commissioner Alberto D. Lina said he formally met with incoming chief Nicanor E. Faeldon and businessman Carlos G. Dominguez III, who has been named as the next Finance secretary, to discuss plans for the bureau on June 13, ahead of the official June 30 turnover that coincides with president-elect Rodrigo R. Duterte’s inauguration. “We started the formal transition [on June 13], tuloy-tuloy yun hanggang sa ma-turn over sa June 30 (the transition will continue until the turnover on June 30),” Mr. Lina told reporters at a program launch held at the agency’s headquarters in Port Area, Manila. Mr. Lina, along with his deputy commissioners and staff, met with the team of Messrs. Dominguez and Faeldon at the Linden Suites Manila for their discussions.
More questions crop up on new customs law The Standard 12th Jun 2016
Officials of the Bureau of Customs remain clueless why outgoing Customs Commissioner Alberto Lina insisted on the hasty passage of the implementing rules of the newly signed Customs Modernization and Tariff Act despite questions and objections from stakeholders. “We don’t know why and what was the motive of the commissioner in rushing the [implementing rules and regulations],” said one of the Customs officials who asked not to be identified until the Duterte administration takes office on June 30.
Changes to customs audit rules The Manila Times Online 12th Jun 2016
On May 27, 2014, President Aquino signed into law Republic Act (RA) 10863 or the Customs Modernization and Tariff Act (CMTA), paving the way for sweeping changes in the way the Bureau of Customs (BoC) operates. The move was also seen as a way to promote transparency and efficiency in the BoC and elevate its systems and procedures to the level of global best practices.
Purisima orders DOF to clear policy moves with Dominguez team GMA News Online 9th Jun 2016
Finance Secretary Cesar Purisima has instructed Department of Finance (DOF) officials to clear all policy actions with the transition team of incoming Finance Secretary Carlos Dominguez. "This is to ensure smooth transition," the outgoing Finance chief said. The policy actions include the discussions on the budget deficit and other programmed amounts, the development of implementing rules and regulations (IRRs), and the ongoing work on tax reform studies to advance policy guidance in the remaining weeks of the transition period. Purisima asked all concerned officials to complete staff work on the tax reform studies so the new Finance chief can review, revise, and finalize the document according to his policy priorities. Dominguez must review and approve the IRRs of the Customs Modernization and Tariff Act, the Tax Incentives Monitoring and Transparency Act, and the Microfinance NGOs Act, Purisima noted.
Sonny Dominguez to Bert Lina: Don't rush IRR on new Customs Law or there will be 'hell to pay' Politiko 8th Jun 2016
Incoming Finance Secretary Carlos Dominguez said outgoing Customs Chief Alberto Lina should give the Duterte administration the prerogative tolay down the implementing rules and regulations of the new Customs law. In a tweet by Manila Bulletin reporter Chino Leyco, Dominguez was quoted as warning Lina against tying the hands of the Duterte administration to his IRR for the Customs Modernization and Tariff Act (CMTA). If Lina rushes the crafting of the CMTA’s IRR, Domnguez warned there would be “hell to pay.” Dominguez is wary of moves by Lina and his boss, outgoing Finance Secretary Cesar Purisima, to rush the finalization of the CMTA’s IRR before they step down on June 30.
Defense & Security
China says the Philippines is ignoring a maritime talks proposal Reuters 9th Jun 2016
China said on Wednesday the Philippines has ignored a proposal for a regular talks mechanism over maritime issues, as it repeated that its door was always open to bilateral talks with Manila on the South China Sea. China claims most of the waters, through which $5 trillion in ship-borne trade passes every year. The Philippines, Vietnam, Malaysia, Taiwan and Brunei have overlapping claims, as well as close military ties with the United States.
Indonesia, Philippines, Malaysia Agree on New Joint Patrols Amid Kidnappings The Diplomat 20th Jun 2016
Indonesia, Malaysia, and the Philippines agreed Thursday to conduct coordinated maritime patrols as part of a broader plan to tackle rising security challenges in the waters bordering the three countries. At a trilateral “2 + 2” meeting of their foreign ministers and military chiefs held in the central Java town of Yogyakarta, the Southeast Asian states agreed to have joint patrols in their surrounding waters. They also said they would set up crisis centers within their countries as well as a hotline between them to ensure speedy communication during maritime emergencies.
Justice bats for credible defense, or face ‘erasure’ Inquirer 18th Jun 2016
The Philippines will be “erased from the map” if it fails to have a credible defense force through alliance with the United States, Japan and Australia amid China’s increasingly aggressive behavior in the heavily disputed South China Sea, Supreme Court Associate Justice Antonio Carpio said on Friday. Carpio said he was confident that the United Nations Permanent Court of Arbitration in The Hague would invalidate China’s claim to almost all of the South China Sea. “But as to the enforcement of the ruling, we have to strengthen our alliance with the United States, Japan, Australia because they have the capability to enforce the decision in the aspect of freedom of navigation,” Carpio said at the Trident Defense Forum on the South China Sea held at Solaire Resorts in Pasay City. Carpio urged the incoming administration of President-elect Rodrigo Duterte to wait for the UN tribunal’s decision, which is expected to come down within the next few weeks, before it moves for bilateral or multilateral talks with China to resolve Manila’s territorial dispute with Beijing in the South China Sea.
Rules for controlled chemicals finalized Business World 14th Jun 2016
The implementing rules and regulations (IRR) on controlled chemicals, which aim to set a balance between national security and industrial growth, has been finalized, reducing the PNP list of controlled chemicals from 101 to 32.“The promulgation of the IRR fully regard that safety of our countrymen is paramount as the regulation supports regulation of storage, transport, and handling of chemicals which can be used to create bombs,” Department of Trade and Industry Secretary Adrian S. Cristobal, Jr. said, as quoted in a statement released to journalists. The IRR is set to be published on July 25, with its effective pending 15 days after.
US closely ‘watching’ Duterte, says expert Inquirer 8th Jun 2016
The United States is “watching very carefully” the moves of President-elect Rodrigo Duterte, particularly during his first 100 days in Malacañang, and his reaction to the much-awaited ruling of a United Nations tribunal court on the Philippines’ maritime row with China, according to an expert of a US-based think tank. “It is ironic that we are watching because if you ask leaders in Washington right now, they would say the US-Philippine relationship is at a high point,” said Ernest Bower, a nonresident senior adviser for the Southeast Asia Program at the Center for Strategic and International Studies. In an interview with the Inquirer on Monday, Bower said the long-standing relations between the Philippines and the United States were even made stronger during the Aquino administration. “There is no reason to believe that a new leader of the Philippines would sacrifice all those good things to move into a direction that would put the Philippines in a less secure and less economically prosperous position,” he said. “I think the proof is really in the pudding. In other words, what we are watching is who he selects to be in his Cabinet. What his first 100 days would look like, what actions he takes particularly around things like the response to the arbitral case in The Hague,” Bower said. Duterte has appointed Perfecto Yasay, a lawyer and former chair of the Securities and Exchange Commission with no background in foreign policy and diplomacy, as acting foreign secretary for one year until Sen. Alan Peter Cayetano takes over. Retired Maj. Gen. Delfin Lorenzana’s designation as the next defense chief is considered to be a silver lining in what is apparently a shallow bench in the security cluster of the Duterte Cabinet. Lorenzana served as a defense attaché to Washington.
Economics
Businessmen laud Duterte's economic team CNN Philippines 22nd Jun 2016
Davao City (CNN Philippines) — Right off the bat, President-elect Rodrigo Duterte on Tuesday made it clear: he is no expert on the economy. Speaking before hundreds of businessmen who have been discussing economic policies with his Cabinet since Monday, Duterte stressed that he's a lawyer. He’s aware that it's a common observation that he doesn't present an economic agenda in such forums. But Duterte stressed that's what his Cabinet is for, saying he has no doubt about the people he has chosen.
Business proposes reforms to Duterte BusinessWorld 21st Jun 2016
In a two-day consultation workshop that ended yesterday, around 450 business leaders outlined 10 recommendations to the government of President-elect Rodrigo R. Duterte, who will assume office at noon of June 30. “I assure you we will study and review it. And for now, I would say this is doable. It’s a matter of just doing it and implementing it,” Mr. Duterte told participants in the consultation titled: “Sulong Pilipinas: Hakbang Tungo sa Kaunlaran.” Reforming the country’s tax regime, which has been unchanged since 1997, topped the recommendations presented to the president-elect. The business leaders particularly want the corporate income, personal income and capital gains tax rates lowered, possibly pegging them to those of Singapore and Hong Kong, Philippine Chamber of Commerce and Industry President George T. Barcelon said.
Duterte aims to pluck 9 M Pinoys from poverty Philstar 20th Jun 2016
With greater focus on countryside development, the Duterte administration is aiming to pull nine million Filipinos out of poverty and keep the country in the growth path by strengthening the agriculture and manufacturing industries. In a dialogue-workshop with the business community here yesterday, Duterte’s officials discussed in greater detail the incoming administration’s thrust of spreading out development efforts, which they said were concentrated in Metro Manila for a long time now. “We are targeting to reduce poverty rate between 1.25 and 1.5 percentage points a year. That will make a combination of around nine percentage points,” incoming finance secretary Carlos Dominguez III told reporters on the sidelines of the meeting with more than 300 businessmen called “Sulong Pilipinas (Move forward, Philippines)” at the SMX convention center here.
BusinessWorld | More audacious’ policy making planned Business World 20th Jun 2016
DAVAO CITY -- Fiscal consolidation in the last two decades has left room for “more audacious” policy making that will further increase state infrastructure spending to keep economic growth above 6% and lift more Filipinos out of poverty, the new government’s economic managers said here yesterday. “Two decades of fiscal consolidation finds us with a manageable debt service level and investment grade ratings. There is room for more audacious economic policy making,” incoming Finance Secretary Carlos G. Dominguez III said at the start of a two-day consultation workshop with some of the country’s biggest businesses.
Tax managers to bat for fair system, other reforms at meet Philippine Daily Inquirer 19th Jun 2016
Tax managers said Saturday they would push for reforms in a meeting of economic managers during the incoming Duterte administration, while criticizing the Bureau of Internal Revenue for releasing a number of regulations ahead of the change in leadership. The Tax Management Association of the Philippines (TMAP) said in a statement it would “recommend various tax reform proposals” when it joins a two-day consultative workshop scheduled in Davao City beginning Monday. TMAP said it would propose remedies for overtaxation resulting from inflation, for adjusting tax rates for regional and global competitiveness, as well as for adopting a “fair and just tax system” to protect taxpayers’ rights.
Philippine economy to remain ‘best performer’ in Asia, says HSBC The Philippine Star 17th Jun 2016
MANILA, Philippines - Hong Kong and Shanghai Banking Corp. (HSBC) expects the Philippines to post a slower growth in the coming quarters.“While the pace of growth will likely slow in the coming quarters after the election boost subsides and the base effect turns less supportive, the Philippine economy should nonetheless remain a regional outperformer given the domestically-driven nature of growth,” HSBC economist Joseph Incalcaterra said. HSBC sees the economy expanding 5.9 percent this year before slowing down to 5.8 percent next year.
Incoming NEDA chief favors lower limit on foreign ownership Philstar 16th Jun 2016
Incoming socioeconomic planning secretary and National Economic and Development Authority (NEDA) director general Ernesto Pernia is intent on pushing for relaxation of restrictions on foreign direct investments and attract more ventures in manufacturing and agriculture in the provinces.Foreign business groups have been batting for the relaxation of foreign ownership cap of 40 percent, saying this is preventing the country’s foreign investment inflow from meeting its full potential. They argue that massive amounts of foreign investments is the best way to generate more jobs in the country.
16th Congress: Hits and misses in propelling economic growth BusinessMirror 15th Jun 2016
Some were awaiting fists to fly on June 6 at the Lower House. It was the last day of the 16th Congress when Party-list Rep. Neri J. Colmenares of Bayan Muna appealed to fellow lawmakers to reconsider and approve a motion overriding a presidential veto of a proposed increase in private pension. However, Majority Leader Neptali M. Gonzales II refused, saying the Senate has already adjourned.“There is no rule that prohibits the House from tackling business just because the Senate has adjourned,” Colmenares said. “The Senate can always reconvene any time, as it has done so in the past, before our term ends on June 30. The House leadership just does not want to put it [Gonzales’s motion] to a vote for fear that our motion will get the necessary votes to override the veto of the President.”
GDP growth seen close to 6% BusinessWorld 15th Jun 2016
SUN LIFE of Canada (Philippines), Inc. (Sun Life) expects Philippine economy to grow at a modest 5.9% this year as it awaits the plans and programs of the incoming administration to further take shape.The country’s gross domestic product (GDP) growth could come in at 6% in 2017 and 5.9% in 2018, Michael Gerard D. Enriquez, chief investments officer of Sun Life of Canada Philippines, Inc. said in a media briefing yesterday, adding that the Philippines could however post higher growth rate should the government further push infrastructure spending. announced by economic managers in February amid global headwinds such as China’s slowing expansion and the impact from a slump in global oil prices. GDP is also expected to grow 6.6% to 7.6% in 2017, 7% to 8% in 2018 and 6.9% to 7.9% in 2019.
VAT hike faces rough sailing in 17th Congress BusinessMirror 15th Jun 2016
Lawmakers on Wednesday vowed to oppose the plan of the next administration to increase the value-added tax (VAT) to 15 percent, saying this would further erode the purchasing power of Filipinos. Rep. Romero S. Quimbo of the Second District of Marikina, chairman of the House Committee on Ways and Means in the 16th Congress, said raising the 12-percent VAT will hurt the poor. “We must make sure that any increase in VAT will not be regressive, that it’s not the poor that will get hit the most. As it is, the poor gets hit the most by VAT. We cannot allow this to happen,” Quimbo said.
Cemex: a rare concrete deal in the Philippines FinanceAsia 14th Jun 2016
The Philippines has become one of the best regarded economies in Asia. But what it has not become, despite the best attempts of bankers inside and outside of the country, is a major source of capital market revenues. The easy availability of bank loans, bolstered by steady flows of remittances from overseas workers, puts many local companies off the rigours of bond registration. The most recent initial public offering was paltry: a $4 million listing by Italpinas Development Corp. Block trades are patchy too, as they are elsewhere in the region But opportunity lurks on the horizon, with the Philippines Stock Exchnage expected to facilitate deals worth PS200 billion($4.26 billion) this year, its president and chief executive Hans Sicat told FinanceAsia. That's a big leap from the $316 million that Dealogic reckons was reaised in the first five months of 2016. However some of the biggest deals on the horizon are coming from the subsidiaries of foreign companies - and these are difficult for bankers to replicate. The IPOs of Cemex Holdings Philippines, and possibly Shell Philippines are more likely to be exception than the start of a trend..
Strategy 1 of the Philippine Export Development Plan Business Mirror 14th Jun 2016
The 2015-2017 Philippine Export Development Plan (PEDP) will implement a two-track intervention to identified sectors named as key and emerging export sectors. These sectors have been identified as having at least one of the following criteria: Those that significantly contribute to exports, have high growth potential, and with competitive and comparative advantages. Key export sectors are those that have met one or several of the following criteria: (1) at least more than $1-billion export revenues in 2014; (2) substantial impact on employment; and/or (3) high-growth potential or remarkable export performance. The key export sectors include electronics, motor vehicle and parts, coconut oil, information technology and business-process management sector, technical and computer and information services, and processed food and beverages. Emerging exports are those products for which global demand has been increasing and for which Philippine exports has been growing faster than world demand since 2006. Emerging export sectors include chemicals, activated carbon, metal components and fish, both preserved and fresh.
Duterte named Go Negosyo Executive Director as new DTI Secretary GoNegosyo 14th Jun 2016
Go Negosyo’s Executive Director Ramon Lopez will be joining President Duterte’s roster of cabinet members as the Secretary for Department of Trade and Industry. This is confirmed after Ernie Abella, one of President Duterte’s spokesperson made the announcement. Ramon Lopez has been the Philippine Center for Entrepreneurship - Go Negosyo’s Executive Director for the past 11 years. Together with Go Negosyo’s Founder, Joey Concepcion, he has led the strong entrepreneurship advocacy promoting the enterprising culture among Filipinos. For 22 years, he has served the business sector as a top executive of RFM Corporation and has handled strategic planning and business development, mergers and acquisitions, and equity investors group. He has earned the respect of the business, financial and investment communities here and abroad.
Economic gains seen secure even as political risk starts to weigh BusinessWorld 13th Jun 2016
The Philippines is seen to remain among the fastest-growing economies in Southeast Asia in the next five years despite some political instability under president-elect Rodrigo R. Duterte that could cause investments to slow down, the Economist Intelligence Unit (EIU) said. In a report yesterday, EIU said the next administration is likely to sustain gains secured under the Aquino government on the economic front, which would allow the country to sustain its robust growth story in the near term.
Macroeconomic targets up for review Business World 12th Jun 2016
Benjamin E. Diokno, incoming Budget secretary who will also head the Development Budget Coordination Committee (DBCC), yesterday noted that the 2016 gross domestic product (GDP) target is “on the high side.” “We will revisit the 2016 and 2017 forecast. Off hand, I think the 2016 forecast is on the high side. Agriculture and net exports will be in negative territory. Impact of elections has started to fade,” Mr. Diokno said in a mobile text message, adding that “[a]ll macro targets, including inflation rate, t-bill rate, libor rate, oil prices, exports and imports” will be up for review.
Philippines' foreign direct investments grow by 59.1% in March 2016; First quarter 2016 level reaches $1.3 billion The Asian Banker 10th Jun 2016
Foreign direct investments (FDI) rose by 59.1 percent to post US$364 million net inflows in March 2016 from US$229 million in the comparable period in the previous year. The country’s sustained favorable economic performance as evidenced by 69 consecutive quarters of positive growth, and growth prospects for the year ahead, helped drive inflows in all FDI components during the period. On a cumulative basis, FDI yielded US$1.3 billion net inflows in the first quarter of 2016, increasing by 52.1 percent from US$850 million in same period last year. This was on account of higher gross equity capital placements at US$599 million during the period from the previous year’s level of US$330 million. Equity capital infusions during the period emanated largely from Hong Kong, Singapore, Spain, the Bahamas, and Taiwan. By economic activity, equity capital were mainly channeled to financial and insurance; construction; accommodation and food service; real estate; and manufacturing activities. Net investments in debt instruments increased by 50.1 percent to US$617 million from US$411 million in the same quarter in 2015. Meanwhile, reinvestment of earnings contracted moderately by 2.1 percent to US$181 million.
PCC reminds firms on M&A notices The Philippine Star 9th Jun 2016
The Philippine Competition Commission (PCC) is reminding parties recently involved in mergers and acquisitions that a mere filing of a notification with the agency does not guarantee a “deemed approved” status for their subject transaction. The country’s newly-formed anti-trust authority issued yesterday a statement specifying the scope of its authority to review and act on proposed mergers and acquisition. “Parties to a proposed merger and acquisition cannot make the determination of whether a transaction is deemed approved, this is for the PCC to determine,” it said. “More specifically, it has been erroneously claimed that transactions entered into and reported to the PCC prior to the publication of the Implementing Rules and Regulations (IRR) of the Philippine Competition Act (PCA) fall outside of PCC’s authority to review because these are deemed approved under added the applicable memorandum circulars. This is not accurate,” the PCC added. The PCC said it would review all submissions for sufficiency and completeness of information, and then decide after due consideration if the subject transaction will be deemed approved. The PCC last Friday issued the final version of the PCA’s IRR. The PCC plans to assess the joint acquisition of Philippine Long Distance Telephone Co. (PLDT) and Globe Telecom of San Miguel Corp.’s telecommunications assets. In addition, the European Chamber of Commerce of the Philippines has filed an anti-competition case with the PCC on the Philippine Contractors Accreditation Board and its alleged unfair practices on foreign-owned contractors.
Banks swarm BSP’s maiden TDF auction Inquirer 9th Jun 2016
The maiden auction of the Bangko Sentral ng Pilipinas’ term deposit facility (TDF) held Wednesday was swarmed by banks, attracting more than P199.7 billion in bids for the offering of P30 billion. Both the seven- and 28-day term deposits auctioned off under the interest rate corridor (IRC), aimed at mopping up excess liquidity and tempering volatility in market rates by moving them toward the policy rate, yielded an average rate of 2.5 percent. The BSP awarded all P10 billion in seven-day term deposits offered even as the auction was oversubscribed by more than eight times with tenders hitting P82.4 billion. The offering for P20 billion in 28-day term deposits was also oversubscribed by nearly six times, with bids reaching P117.3 billion. “We are pleased with the how the auctions were conducted without any technical hitch. That the auction was filled at the same rate as the overnight deposit facility (ODF) seems to indicate that there is still significant liquidity in the system, which we expect will be siphoned off in the ODF throughout the day,” BSP Governor Amando M. Tetangco Jr. said.
PHL seen topping Asian, world growth BusinessWorld 8th Jun 2016
The World Bank remains bullish on the Philippines despite expectations of slower global growth, buoyed by robust domestic demand and strong fund inflows that continue to anchor its economy against external headwinds. In the June Global Economic Prospects report it released yesterday, the multilateral lender maintained its 6.4% forecast growth for the Philippines -- against the government’s 6.8-7.8% target for 2016 -- allowing it to remain one of the fastest-growing economies in Asia Pacific and the world amid paling global growth prospects. For the next two years, the World Bank expects the Philippines to grow 6.2% annually, against the government’s 6.6-7.6% and 7-8% targets for 2017 and 2018, respectively. The World Bank slashed its forecast for global growth to 2.4% for 2016 and to 2.8% in 2017 -- compared to the 2.9% and 3.1% projections given last January -- due to “significant” downgrades in the forecast for export-oriented economies, factoring in “heightened domestic uncertainties” and “a more challenging external environment.” Global growth is then expected to pick up to 3.0% in 2018. The Philippines is expected to remain resilient to external headwinds on account of its narrow budget gap and steady inflows from remittances and trade in services, as well as robust domestic spending. “Among the large developing ASEAN (Association of Southeast Asian Nations) economies, Vietnam and the Philippines have the strongest growth prospects. In the Philippines, growth is projected to firm to 6.4% in 2016, with an accelerated implementation of public-private partnership projects and strong domestic demand. The country benefits from diversified export markets and low global commodity prices.”
Next DTI chief wants to cut poverty via inclusive business BusinessMirror 19th Jun 2016
THE incoming chief of the Department of Trade and Industry (DTI) said he is keen on encouraging the growth of more “inclusive” businesses (IBs) to create more jobs, produce cheaper goods and cut poverty. Incoming DTI Secretary Ramon Lopez said he intends to continue the Aquino administration’s thrust of supporting micro, small and medium enterprises (MSMEs), particularly those that have adopted the IB model. According to the World Bank, inclusive businesses are those that provide goods, services and livelihood on a “commercially viable basis to people at the base of the pyramid by making them part of the value chain of companies’ core businesses as suppliers, distributors, retailers or consumers.”
Energy
LT Group expands to energy Philippine Daily Inquirer 22nd Jun 2016
Tycoon Lucio Tan-led conglomerate LT Group Inc. (LTG) is looking to diversify its revenue stream and debut in the energy sector with a potential investment in an 80-megawatt wind farm in Pililla, Rizal. Talks are ongoing with Alternergy Wind One Corp.—a company led by former Energy Secretary Vincent Perez—for a partnership in this new wind farm project in Rizal, LTG president Michael Tan told reporters after the company’s annual stockholders’ meeting yesterday. “We’re looking at expanding our portfolio,” Tan said, referring to renewable energy projects.
Solar projects eligible for FiT named BusinessWorld 21st Jun 2016
The Department of Energy (DoE) has endorsed seven solar projects to receive a subsidized rate of P9.68 for each kilowatt-hour (kWh) they feed into the electricity distribution or transmission network while 17 others are to get P8.69 per kWh, ending speculation about the outcome of its installation target for the renewable energy. In a statement, Energy Secretary Zenaida Y. Monsada said her department, through the Renewable Energy Management Bureau, had “worked day and night to ensure that each eligible solar developer strictly followed the process and technical requirements.” The 24 solar projects that were endorsed to receive the guaranteed feed-in-tariff (FiT) rate for 20 years were developed by 20 companies, which in all have installed 525.95 megawatts (MW) or 25.95 MW more than the department’s target of 500 MW.
Clean-power advocates call for more investments in renewable energy BusinessMirror 20th Jun 2016
More investments on clean energy are seen to accelerate the Philippines’s goal to mitigate its carbon emission by 2030 and eventual transition to renewable energy (RE) by 2050. Cleantech Venture expert Charles Cole Navarro said around $1.26 trillion worth of investment in energy efficiency, RE and energy access is needed annually worldwide. Given such amount of commitment to help solve climate change, he said only 30 percent of the requirement is met at present. For energy efficiency, there’s only $130-billion actual investment out of the $560-billion needed funding.
Renewable energy seen as new driver of PHL investment growth BusinessMirror 19th Jun 2016
RENEWABLE energy (RE) now presents the biggest opportunity for local investment, as the Philippines plans to veer away from dirty coal through an ongoing energy-policy review, the Climate Change Commission (CCC) said. Secretary Emmanuel de Guzman, vice chairman of the CCC, said the country has “nothing to lose but all to gain” with the shift to renewable energy by luring investors to put a stake on solar, wind and geothermal energy. “It is RE, not coal, which constitutes the biggest investment opportunity ever for the Philippines,” de Guzman said in a statement. try sectors.
CCC starts PHL energy-policy review BusinessMirror 16th Jun 2016
The Climate Change Commission (CCC) began on Thursday a comprehensive energy-policy review that will lead the country to a low-carbon development path by veering away from coal and pursuing renewable-energy (RE) sources. The CCC, together with key government agencies, has six months or until the end of the year to craft a framework development on energy, in accordance with Commission Resolution 2016-001 it issued last month, a CCC news statement said. pointed out.
LGUs get P865M from energy resources’ profits BusinessWorld 14th Jun 2016
In a statement, the agency said towns, cities, and provinces across 12 regions got hold of their internal revenue allotment shares from tax collections coming from energy resources production. The amount represents the 40% share of local government units (LGUs) in the proceeds from petroleum, coal, geothermal, hydrothermal, and wind resources totaling P2.158 billion last year, the DBM said.
Next DoE chief to decide on perks for solar projects BusinessWorld 14th Jun 2016
Outgoing Energy Secretary Zenaida Y. Monsada told reporters that the feed-in-tariff (FiT) rate for projects that did not make it to the March 15 deadline was among her administration’s unfinished businesses, which could be decided on by Mr. Cusi. The Department of Energy (DoE) originally set a target of 50 MW with a guaranteed FiT rate of P9.68 per kilowatt (kWh), but the allocation was later revised to 500 MW, with the Energy Regulatory Commission (ERC) lowering the rate on March 15, 2015 to P8.69/kWh, but only until March 15, 2016.
Group backs Duterte’s call for mining firms to shape up BusinessMirror 13th Jun 2016
A Philippine environmental group has voiced its support for President-elect Rodrigo R. Duterte’s call for mining companies to “shape up.” For a country with a rich biodiversity and island ecosystems profile like the Philippines, there is no place for illegal miners and destructive mining practices, said lawyer Ysan Castillo, secretary-general of Philippine Business for Environmental Stewardship (PBEST). “We are fully behind President Duterte in admonishing firms to practice responsible mining, because it is the only way for us to achieve sustainable development,” Castillo said.
Duterte administration to retain PPP Center BusinessMirror 13th Jun 2016
Despite the failure of the 16th Congress to pass the proposed Public Private Partnership (PPP) Act, the incoming Duterte administration is keen on retaining the PPP Center. In an interview, incoming National Economic and Development Authority (Neda) Director General Ernesto M. Pernia told the BusinessMirror that the new administration has no plans of abolishing the PPP Center. The PPP Center was created through Executive Order (EO) 8 by outgoing President Aquino in September 2010. The EO renamed the Build-Operate-Transfer Center as the PPP Center and transferred it from being an attached agency of the Department of Trade and Industry to the Neda.
DENR appointment spooks miners BusinessWorld 22nd Jun 2016
The general optimism in the country’s business community as the incoming administration unveiled its economic agenda was blotted yesterday on the mining front by news President-elect Rodrigo R. Duterte has named an anti-mining advocate to head the Department of Environment and Natural Resources (DENR). Stocks of listed miners yesterday succumbed to news that Mr. Duterte offered the post last Monday to Regina Paz “Gina” L. Lopez, trustee of the Lopez Group Foundation, Inc. and chairman of the ABS-CBN Lingkod Kapamilya Foundation, Inc., the corporate social responsibility arm of media giant ABS-CBN Corp. that lists a “No to Mining Campaign” among its key advocacies. ABS-CBN Lingkod Kapamilya Foundation confirmed in a statement late yesterday afternoon that Ms. Lopez has accepted the offer to head DENR, which oversees the country’s mining industry through its Mines and Geosciences Bureau.
AboitizPower acquires diesel plant operator Inquirer 16th Jun 2016
Therma Power Inc., a wholly owned subsidiary of Aboitiz Power Corp., acquired El Paso Philippines Energy Co. Inc.’s (EPPECI) 50-percent interest in East Asia Utilities Corp. (EAUC) to boost its power capacity. The acquisition of the EAUC shares is in line with AboitizPower’s target to increase its attributable net sellable capacity to 4,000 megawatts by 2020. EAUC is a power generation company operating in Mactan, Cebu. It owns and operates a 50-MW diesel-fired power station in Cebu province. AboitizPower increased this month its ownership of EAUC to 100 percent from 50 percent after forging a deal with partner East Asia. “The acquisition is in line with AboitizPower’s target to increase our net attributable capacity to 4,000 MW by 2020,” AboitizPower president and COO Antonio R. Moraza said.
Banks lending more to renewable energy projects Inquirer 15th Jun 2016
Philippine banks have become increasingly supportive of renewable energy (R.E.) financing, taking their cue from investors who funnel more funds into more sustainable power generation projects, energy and financial experts said at the Nordic Business Council Philippines forum. Tor Stokke, country director of SN Power Philippines, said local banks had started developing more awareness on R.E. “The R.E. market is more competitive. Local banks are more willing to finance projects and are very liquid,” Stokke said. BDO Unibank, for one, has an exposure of about P33 billion to R.E. projects. Senior executive vice president Walter Wassmer said BDO Unibank had decided that it needed to educate its officials on lending opportunities presented by the emergence of R.E. and climate change. The bank partnered with the International Finance Corp. for advisory services while BDO provides funding to clients.
Solar PH to build more plants sans gov’t stimulus Inquirer 14th Jun 2016
Solar Philippines Power Project Holdings Inc. (Solar PH) is set to build three solar farms in Luzon and Mindanao to further promote renewable energy use. CEO Leandro L. Leviste said the company would roll out a total of 228 megawatts (MW), which could still be expanded, beginning this year up to 2017. The first would be a 135-MW solar farm in Tarlac province, followed by an 18-MW facility in Cagayan de Oro and a 75-MW project in Batangas. All three would not even be relying on the Feed-in-Tariff (FIT) program, which provides guaranteed returns for qualified investors seeking to recover costs for the still expensive solar energy production. “Those three solar farms will be built outside the FIT system and we envision the one in Tarlac to become the largest solar farm to run without FIT incentives. It would have a capacity of 135 MW in the initial phase, with room for expansion,” Leviste said. Solar PH has started procuring manufacturing equipment for its solar panel factory and would start setting up in the third quarter of 2016. Leviste said the facility was expected to be one of the world’s largest solar panel factories and would help make the Philippines a global hub for solar power. The facility may start operating by the end of 2016.
Vast Opportunity in Distributed Power Generation Solutions as Demand for Power in Southeast Asia Soars MarketWatch 14th Jun 2016
The inadequacy of transmission and distribution (T&D) infrastructure and the topographical challenges in isolated islands such as Indonesia and the Philippines have created strong demand for distributed power generation (DPG) in Southeast Asia. Myanmar, marked by low electrification rates of 26 percent and high transmission line losses of 25 percent, will also have significant use for DPG, especially to provide electricity to smaller load centers. New analysis from Frost & Sullivan (Trends in the Distributed Power Generation Market in Southeast Asia) finds that the overall installed capacity of the DPG market was estimated to be 20,450 MW in 2015 and is forecast to reach 34,747 MW by 2020. The key types of power plants analyzed are biomass and waste to power, solar photovoltaic (PV), internal combustion engine (diesel/heavy fuel oil [HFO]/gas engines/gensets)-based power plants and temporary rental power plants. "Indonesia, Myanmar and the Philippines have been facing severe rolling blackouts due to the gap in supply, their geography, and weak power sector infrastructure," said Frost & Sullivan Energy & Environment Research Analyst Adwaith Visveswaran. "Additionally, prolonged delays in completing base load centralized power generation plants in these countries create vast opportunities for diverse DPG solutions that can be quickly deployed to meet soaring electricity demand."
DENR urges Senate to ratify Minamata Convention Business Mirror 12th Jun 2016
The Department of Environment and Natural Resources (DENR) expressed hope that the Senate would soon ratify an international treaty regulating the use and trade of mercury, a highly toxic substance that poses threats to human health and the environment. This developed as the DENR—through its Environmental Management Bureau—and its partners from the public and private sectors has released a Ratification Dossier on the Minamata Convention on Mercury, which the Philippines adopted in October 2013. The dossier was completed through the assistance of the United Nations Institute for Training and Research and the Swiss Confederation.
Solar energy competitive vs coal In 10th Jun 2016
The solar power industry has built up enough capacity to compete with conventional energy sources, including coal, experts said. Solar Philippines Power Project Holdings Inc. (Solar PH) CEO Leandro L. Leviste said that even if utilities (such as Manila Electric Co. and electricity cooperatives) in areas with solar farms would conduct competitive bidding now, solar power would be competitive even against coal, perceived to be the cheapest energy resource provider. Asked how solar power could compete under the Competitive Selection Process (CSP) being mandated by the government starting this year, Leviste said, “Solar power is competitive… I challenge the energy industry to bid out supply contracts and we can show that solar power can be supplied at around P4 per kilowatt-hour (kWh), or about the same level as coal,” Leviste said. “The conventional wisdom is that solar is expensive and it will take decades more to be competitive. Yet last month, the world’s lowest prices for solar was set in a bidding in Dubai at P1.345 (peso equivalent) per kWh. Other bids were P1.575 per kWh in Mexico and P1.741 per kWh in the US,” Leviste said. The local solar market has gained economies of scale, Leviste said. The Philippines had a total 4 megawatts (MW) of solar power in 2013, but installed capacity was estimated to have reached 900 MW by mid-2016. He said there was enough scale that his company could offer its solar-rooftop client SM Malls a fixed rate of power supply that is 30 percent cheaper than the commercial rate of Meralco.
Mindanao’s RE push to boost PHL’s clean energy agenda Philippine Information Agency 9th Jun 2016
A focused target to keep Mindanao’s energy mix diversified with premium on renewable energy (RE) sources augurs well for the country’s clean energy agenda, says an official from Malacañang’s economic think-tank in Mindanao. Romeo M. Montenegro, director for Investment Promotion and Public Affairs of the Mindanao Development Authority (MinDA) said that accelerating RE projects points to a logical way forward of achieving an ideal energy mix. Speaking to reporters at the sidelines of the Asia Clean Energy Forum 2016 at the ADB Headquarters in Pasig City, Montenegro cited that Mindanao’s current energy mix of 60-40 in favor of RE will see significant reversal to 70-30 dominated by fossil in 2018. Latest report from the Department of Energy (DOE) indicated a total of 1,800 megawatts (MW) of additional capacity in Mindanao from coal-fired power plants coming online by 2018, with the first 300MW from Aboitiz Therma South already delivering power to the grid since late last year. In a bid to offset the rise of fossil and keep a balanced energy mix in Mindanao, MinDA, through its Mindanao Power Monitoring Committee has set-up a One Stop Facilitation and Monitoring Center to help accelerate deployment of RE projects in the island.
UK firms find rich ocean energy potential in PH Inquirer 9th Jun 2016
Investors from the United Kingdom said the Philippines has a big potential for ocean energy production as they called for government support especially on the revival of the shelved guaranteed incentives for developers. Officials from UK-based and UK-focused companies OpenHydro Group Ltd., SgurrEnergy Ltd., Albatera, Aquatera Ltd., IT Power, and Bell Pirie Power (Philippines) said they have ongoing developmental and commercial projects elsewhere in the world but they were keen on pursuing projects in the Philippines and other Asian countries, which have vast marine resources and are fast emerging as growth areas. Bell Prie Power (Philippines) CEO Lourdesiree Latimer said there was a “headspinning” potential for ocean energy production in the Philippines, especially in the west side of Luzon. “That is the Silicon Valley of ocean energy.” An initial combined capacity of 100 megawatts (MW), developed jointly by several firms, would encourage other investors and bring the production cost down to more affordable levels, she said.
Groups welcome ADB support to PH clean energy goals Inquirer 8th Jun 2016
Civil society groups on Wednesday welcomed the support of the Asian Development Bank (ADB) to the Philippines’ clean energy goals. “ADB is fully supportive of the COP21 (Paris climate talks) outcomes. We are fully supportive of the country’s clean energy ambitions,” Richard Bolt, ADB’s country director for the Philippines, said on the sidelines of the 11th Asia Clean Energy Forum. Bolt reacted to calls demanding the bank to respond to the review of the Philippine energy pathway, consistent with the 1.5°C global warming limit referenced in the Paris climate talks as well as with global energy trends. “The Duterte administration’s goal to transition early to clean energy deserves full support from the international investment community. We applaud ADB’s positive response and hope they will follow through,” said Renato Redentor Constantino, executive director of Institute for Climate and Sustainable Cities.
Financial Services
Philippines joins list of most promising FDI destinations Business World 21st Jun 2016
THE PHILIPPINES has emerged as among the world’s most promising destinations of foreign investments in the next three years, according to the United Nations Conference of Trade and Development (UNCTD). In its World Investment Report 2016, UNCTD said the US, China and India remain the top destinations of investments by multinational enterprises (MNEs) between this year and 2018. However, the US, which since last year has shown signs of economic recovery, displaced China in this year’s UNCTD survey among executives belonging to the 100 biggest non-financial MNEs.
Aquino signs law institutionalizing financial inclusion committee GMA News Online 15th Jun 2016
President Benigno Aquino III has signed into law institutionalizing the Financial Inclusion Steering Committee (FISC), the governing body to implement the government's National Strategy for Financial Inclusion (NSFI). Under Executive Order No. 208 signed by Aquino on June 02, 2016, the FISC has been mandated to provide strategic direction, guidance, and oversight of the NSFI. The Bangko Sentral ng Pilipinas (BSP) said the NSFI serves as a guidepost for public and private sector stakeholders to systematically accelerate financial inclusion in the Philippines. The NSFI defines the national vision for financial inclusion and provides a platform for public and private sector coordination to ensure synergy of efforts. Meanwhile, the FISC is tasked to align various financial inclusion related policies and programs and monitor the progress of these, and collaborate with public and private sector stakeholders on various agenda.
Aquino signs law creating financial inclusion committee Rappler 15th Jun 2016
In his last month in office, President Benigno Aquino III signed into law the creation of a committee that will monitor the delivery of financial services to low-income households in the Philippines. Aquino signed Executive Order No. 208 last June 2 to institutionalize the Financial Inclusion Steering Committee (FISC). (READ: APEC 2015: How to make economic growth inclusive). FISC is the governing body that will provide strategic direction, guidance, and oversight in the implementation of the National Strategy for Financial Inclusion (NSFI). The NSFI, developed through a consultative process, serves as a guide for public and private sector stakeholders to accelerate financial inclusion in the Philippines.
Dominguez ‘not crazy’ about Purisima plan Business World 8th Jun 2016
The government can reduce income tax rates without having to raise the value-added tax (VAT), with the new administration willing to forego revenues and incur a bigger fiscal deficit to fund development, the incoming Finance chief said. The government of President-elect Rodrigo R. Duterte will cut income tax rates, incoming Finance Secretary Carlos G. Dominguez told reporters last June 3, without going into details. Reforming the country’s decades-old income tax regime had become a key issue in the May 9 general elections, with all presidential candidates backing calls to lower income tax rates. The outgoing administration of President Benigno S.C. Aquino III has opposed proposals in Congress to lower personal and corporate income tax rates last adjusted in 1997. The Department of Finance (DoF) under Cesar V. Purisima’s leadership had warned against eroding government revenues and called for a holistic approach to reforming the tax system that would include new sources of revenue to offset those that will be foregone in tax cuts. The Finance department has submitted a tax reform package for the next administration’s consideration. The proposed reform package entails an increase in the VAT rate to 14% from 12% and the expansion of the levy’s coverage to recover revenues foregone with lower income tax rates. “I am not crazy about that... I think the VAT is a regressive tax reform. I think it’s more of a burden to the lower-income than higher-income [earners],” Mr. Dominguez said.
Food & Agriculture
PHL coco exports down 60.3% in March Business Mirror 21st Jun 2016
Export receipts from coconut products in March declined by 60.3 percent to $87.65 million, from $220.77 million recorded in the same period last year, according to data from the Philippine Statistics Authority (PSA). In terms of volume, PSA data also showed that outward shipments of coconut products fell by 71 percent to 64,899 metric tons (MT) in March, from 223,726 MT a year ago. The United Coconut Associations of the Philippines said the decline was due to the onslaught of El Niño, which affected the country’s copra output.
Government to help banana exporters meet China’s stringent food-safety rules Business Mirror 21st Jun 2016
The government will soon roll out interventions to help exporters of Cavendish bananas meet food-safety standards set by foreign buyers such as China, according to the Bureau of Plant Industry (BPI). BPI Plant Product Safety Services Division (PPSSD) chief Malou de Mata told the BusinessMirror the agency is currently preparing training programs to educate exporters about pesticide-residue limits. The government decided to assist exporters, after China started suspending traders who delivered bananas that contained Carbendazim, a fungicide used for fruits. The shipments had Carbendazim levels that reportedly exceeded Beijing’s maximum residue limit (MRL).
Mariano outlines agrarian-reform priorities Business Mirror 20th Jun 2016
Rafael V. Mariano, the incoming secretary of the Department of Agrarian Reform (DAR), on Monday said he will coordinate with the judiciary for the immediate turnover or transfer of agrarian-related cases filed in various courts against farmers to the DAR.The move, he said, aims to boost the agrarian legal services (ALS) provided by the DAR to agrarian-reform beneficiaries. Under Republic Act 6657, or the Comprehensive Agrarian Reform Law (CARL), the DAR is vested with the primary jurisdiction to determine and adjudicate reform matters, and to extend free legal assistance to farmer-beneficiaries affected by agrarian cases.
Next administration seen creating Department of Fisheries Business Mirror 20th Jun 2016
The Bureau of Fisheries and Aquatic Resources (BFAR) on Monday expressed optimism that it will be converted into a separate department under the administration of President-elect Rodrigo R. Duterte. The BFAR said its upgrade into a Department of Fisheries may happen soon, as it has the support of Duterte. The bureau noted that the creation of a separate department for the fisheries subsector is one of the campaign promises made by the President-elect. Officials said it is “imperative” to have a separate department for fisheries and aquatic resources, as the Philippines has “vast” water resources.
Piñol bares plan to boost farm output Business Mirror 20th Jun 2016
The next chief of the Department of Agriculture (DA) enumerated various measures which he plans to implement in his first 100 days in office to increase farm output and farmers’ income. Incoming Agriculture Secretary Emmanuel F. Piñol said on his Facebook account that he has crafted a road map following his “Biyaheng Bukid” initiative, which helped him identify factors that hindered the growth of the farm sector. “There is an urgent need for life-saving efforts to lift up farmers and fishermen and those who depend on agriculture for their livelihood and business,” Piñol said.
Abaca farmers need more government support–Alcala Business Mirror 14th Jun 2016
The incoming Duterte administration should provide more government support to abaca farmers to expand production and exports, according to outgoing Agriculture Secretary Proceso J. Alcala. Despite its potential to boost their incomes, Alcala said farmers shy away from planting abaca because of high-production cost. “Not too many farmers want to go into the production of abaca, resulting to a low production.” The abaca farmers really need more government support on the production side,” he said in his speech during the anniversary of the Philippine Fiber Industry Development Authority (PhilFida).
DA technicians undergo training on use of new farm technology Business Mirror 14th Jun 2016
The Department of Agriculture (DA) said its technicians and engineers from recently received training on a land-leveling technology, which is seen to save water and improve rice yield. The International Rice Research Institute (IRRI) said the training focused on the use of the laser-guided land-leveling system, a climate-smart farming technology that can reduce water use and boost rice productivity.
FAO to pilot e-agriculture strategy in PHL Business Mirror 9th Jun 2016
The United Nations’s (UN) Food and Agriculture Organization (FAO) on Thursday said it is set to roll out a program which aims to maximize the use of information and communications technology (ICT) in agriculture in the Philippines. During the Innovative Strategies for Development Summit, Assistant FAO Representative to the Philippines Aristeo A. Portugal said the UN unit has partnered with the Department of Agriculture (DA) for the implementation of the National E-agriculture Strategy in the country.
DTI, DA agree to improve business licensing process The Philippine Star 22nd Jun 2016
MANILA, Philippines – Improvement in the ease of doing business in the country continues to gain traction with a recent deal signed between the Department of Trade and Industry (DTI) and the Department of Agriculture (DA). DTI said the memorandum of agreement with the DA would allow the two agencies to jointly facilitate business permits, licenses and endorsements involving investors applying for registration with the Board of Investments (BOI). “To benefit fully from the ASEAN Economic Community (AEC) and global market access, it is important that we offer a conducive environment to investors, a place where they could quickly set up their business. An important first step is to make it easy for them to comply with government requirements,” BOI managing head Ceferino Rodolfo said.
Duterte gov’t to set up agri laboratories Business World 20th Jun 2016
Incoming Agriculture Secretary Emmanuel F. Piñol said the Duterte administration will set up agricultural laboratories in each region as part of its intervention to the sector. At the economic consultation held today here, Mr. Piñol said the laboratories will serve as part of the intervention as President-elect Rodrigo R. Duterte endeavors to intensify the sector’s growth. Mr. Piñol explained that the laboratories are specifically needed by the banana export segment, an “industry which has long been neglected.”
Ombudsman probes Agriculture chief for garlic cartel scam Update Philippines 15th Jun 2016
The Office of the Ombudsman (Ombudsman) has started its investigation on Department of Agriculture (DA) Secretary Proceso Alcala and several Bureau of Plant Industry (BPI) officials for their alleged involvement in the garlic cartel scam. This was after the Ombudsman’s Field Investigation Office (FIO) filed a complaint-affidavit against Alcala and BPI officials; namely, Clarito Barron, Merle Palacpac, Jesus Bajacan and Luben Marasigan. Also included in the FIO’s complaint are Lilia Cruz and the incorporators of the Vegetable Importers, Exporters and Vendors Association of the Philippines, Inc. (VIEVA). Alcala et al. are being investigated for violation of Sections 3(e) and 3(j) of Republic Act No. 3019, or the “Anti-Graft and Corrupt Practices Act”.
Project that aims to boost GM corn production pushes through Business World 13th Jun 2016
“We’re just waiting for the equipment to be imported from the United States... They’re coordinating with the DTI [Department of Trade and Industry] now,” the Department of Agriculture Undersecretary Jose C. Reano told reporters, adding that the Supreme Court decision in December banning the field-testing and propagation of GM crops put a temporary halt to secure approval for importation of machinery needed for the project. He added that the DA recently endorsed to the DTI the approval of the importation along with tax incentives that come with the pioneering program. “[This will be] the first in the Philippines for precision agriculture,” said Mr. Reano, adding that the project will be integrated with cattle fattening. Precision agriculture started in the US in the 1980s and employs cutting-edge technologies to separately manage each plot rather than uniformly treat an entire field. The project’s initial phase of planting about 5,000 hectares (ha) for GM yellow corn for two cropping seasons is under the Palawan Supercorn Development Corporation of CPI and PAMGD-SEA. Investments for the first phase will total P202 million. The full project will receive P10 billion in 15 years with the objective of cultivating some 50,000 ha. expected to annually yield some 900,000 MT of corn. The PAMGD plantation will be supported with seeds and technical expertise by biotech agriculture firm Monsanto, which partnered with US-based Precision Planting LLC which has the technology system product patented for modern methods of planting. The project has identified the islands of Busuanga, Cullion, and Coron in the province of Palawan for GM yellow corn production with complete fully mechanized farming equipment and post-harvest facilities and will have an investment cost of approximately $10 million per 5,000 ha. The project is intended to address supply and demand of yellow corn in the ASEAN with the Philippines, Indonesia, and Malaysia, importing an aggregate of some six million metric tons from the US and the South America annually.
DRR technology for agriculture Sun.Star 12th Jun 2016
The Philippines - It has often been said that agricultural technologies take decades before these reach its target beneficiaries, the farmers. Thus, amid the fast-changing climate, farmers are the last ones to be able to adjust and respond. This time around, incoming Agriculture Secretary Emmanuel Piñol wants to push it that way and he’s using technology to help him along. He’s starting off with rice. “Yung Project Noah, gi-satellite mapping noon ang buong Pilipinas, now we’re using it for agriculture,” Piñol said in a telephone interview last Saturday. Project Noah of the Department of Science and Technology was developed for disaster risk reduction and management as it brings to anyone’s fingertips vital information on nine main component projects: Hydromet Sensors Development, Dream-lidar 3D Mapping, Flood NET–Flood Information Network, Strategic Communication, Disaster Management using WebGIS, Enhancing Geohazard Mapping through LIDAR and High-resolution Imagery, Doppler System Development, Landslide Sensors Development, Storm Surge Inundation Mapping, and Weather Information Integration for System Enhancement (Wise). It was also mandated to provide high-resolution flood hazard maps and install 600 automated rain gauges and 400 water level measuring stations for 18 major river basins of the Philippines. In addressing disaster risk concerns, however, the technology at hand also gives a picture of how the landscape is, thus giving a big picture of agricultural potentials. In using the available technology, he added, farmers learn to work with nature more.
Incoming Agriculture chief bares plans CNN 9th Jun 2016
Metro Manila — Damaged crops and dry farm lands can be seen across the country. The Federation of Free Farmers say they need the government's help — possibly in the form of crop insurance. This is just one of the problems that will face incoming Agriculture Secretary Manny Piñol. The Department of Agriculture (DA) reports that since 2015, many provinces were placed under a state of calamity because of El Niño — Isabela and Cotabato have suffered the most. Other affected provinces are Bukidnon, Davao del Sur, Maguindanao, Quirino, Occidental and Oriental Mindoro, Palawan, Bohol, Cebu, Zamboanga, Cagayan de Oro, Ifugao, Negros Occidental and Negros Oriental. Piñol met all DA officials in the morning of Wednesday and he was briefed on many concerns. He said an additional P30 billion was needed to rehabilitate the agriculture and fishery sectors. The amount will be released in the form of calamity assistance. This will cover the 1 million hectares of irrigated land that Piñol said had potential for rice production. More rice production means the country could have enough buffer stock and reduce its need to import. Piñol said the previous administration did not do enough to address the lack of irrigation. The incoming DA chief said there would be no radical change in his administration, except that he'd work on what the incoming President had ordered him to do: rid the agency of corruption and make food available — and more affordable — to all.
Next admin wants PH to be the ‘top coconut country in the world’ Manila Bulletin 9th Jun 2016
The next administration wants the country to regain its status as the top coconut producer in the world even if it means making additional 600,000 hectares of land across the country available to coconut farming. Incoming Agriculture secretary Emmanuel Piñol said that the huge target is doable. As of now, the Philippines is the second top coconut producing countries in the world, next to Indonesia. According to the Statistics Division of Food and Agriculture Organization of the United Nations (FAO), Indonesia produces 35.8 percent of the world’s coconut needs, while the Philippines contributed 30.0 percent. To be exact, Indonesia produced 18.3 million metric tons (MT) of coconut in 2014 (latest year for which statistics are only made available as of January 2016), while the Philippineds did 15.35 million MT during the same year. In a recent data provided by the Exports Marketing Division of the Department of Trade and Industry, the volume of outbound shipments of the country’s coconut water exports surged by 80.17 percent in 2015. Meanwhile, aside from coconut industry, Piñol also wants to rehabilitate the abaca industry. The country’s total abaca export earnings from January to December 2015 stands at USD 114.79 million, 3.1 percent higher than the USD111.334 million seen in the prior year.
Cold storage sector to go hot with Duterte’s agri boost – Villar Inquirer 9th Jun 2016
Sen. Cynthia Villar said on Thursday that the cold storage industry would stand to gain significantly from the boost to be given by President-elect Rodrigo Duterte to agriculture. Villar was the keynote speaker during the Cold Chain Association of the Philippines (CCAP) general assembly and training conference attended by hundreds of its leaders and members held in a hotel here from June 9 to 10. She said the CCAP’s annual event, with its theme “Continuation or Change: Managing Expectations in Political Transition,” has been fitting “as we anticipate and welcome the new administration of President-elect Rodrigo Duterte.” Villar, current chair of the Senate committee on agriculture and food, also acknowledged the vital role the cold chain companies would play in expanding agribusiness under the new presidency. Speaking to reporters at the sidelines of the gathering, she said: “Along with renewed support for agriculture to boost its growth and development, it is good to know that CCAP is steadfast in its mission to promote and upgrade operating practices and standards in the cold chain industry.” She added the concerted efforts of agriculture and cold chain would surely result in more business and economic gains.
P30-B farm, fishery sector rehab package eyed Inquirer 9th Jun 2016
The incoming Duterte administration intends to roll out immediately a P30-billion package for the rehabilitation of the agriculture and fisheries sector to help in its recovery from long-standing constraints and the recent El Niño weather phenomenon. According to Emmanuel F. Piñol, incoming agriculture secretary, the assistance package will mostly come in the form of farm inputs such as fertilizer and seeds. “This is to be done immediately. I will ask the Department of Finance (as to) where this will be sourced,” Piñol said in a briefing that followed a transitional meeting with outgoing agriculture chief Proceso J. Alcala and other senior officials. Also, he said he was proposing the creation of a National Food Security Coordinating Council, which would ensure “interconnectivity among all government agencies that are directly and indirectly” involved in agriculture and fisheries. Piñol said the proposed council would be an umbrella group of agencies that would include not only the bureaus and other entities under the supervision of the Department of Agriculture but also Pag-asa (Philippine Atmospheric, Geophysical and Astronomical Services Administration) and Project Noah (Nationwide Operational Assessment of Hazards) of the Department of Science and Technology.
No urgent need to import rice – Piñol Manila Bulletin 8th Jun 2016
The Philippines, one of the world’s biggest rice buyers, has no urgent need to import rice for now given ample domestic supply, incoming agriculture secretary Emmanuel Piñol said yesterday. The Philippines regularly imports more than a million tonnes of rice a year, mostly from Thailand and Vietnam, although incoming President Rodrigo R. Duterte is aiming to make the country self-sufficient within one to two years. “I was informed by the National Food Authority (NFA) that we have supply good to last for about 103 days. I think there is no need to import rice for now,” Piñol told reporters in a joint media briefing with his predecessor, Secretary Proceso Alcala.
PH rice farmers use SMS service to improve yield Rappler 8th Jun 2016
MANILA, Philippines – Local rice farmers have been actively using the short message service (SMS) or texting for the past few months to improve the process of planting and yielding crops, according to the PhilRice Text Center (PTC). The Philippine Rice Research Institute (PRRI) stated that in the first quarter of 2016, PTC recorded a nationwide increase of 47.3% of users who registered for the service. The number of users for 2016 increased to 27,833 from the 18,924 client registration in March 2015. The top queries that the service received are on seed quality and varietal information, pest management, seed availability, and nutrient management. The provinces of Nueva Ecija, Tarlac, Ilocos Norte, La Union, Pangasinan, and Isabela registered the highest number of clients. The list also included Agusan Del Norte, Oriental Mindoro, Northern Samar, and Leyte. Agriculturist and PTC main agent Fredrierick Saludez said that the service gives farmers “informed decision in their farming practices.” PTC considered the increases in registration as a milestone for the agency.
‘Rice self-sufficiency is still the way to go’ Business Mirror 8th Jun 2016
The incoming chief of the Department of Agriculture (DA) will not abandon the Aquino administration’s bid to become self-sufficient in rice and is even considering the expansion of palay-production areas to wipe out imports. Incoming Agriculture Secretary Emmanuel F. Piñol announced on Wednesday that he is targeting to expand rice-production areas in the country by 1 million hectares to achieve rice self-sufficiency. He added that he has already asked regional directors of the DA to provide a list of irrigated and rain-fed areas, as well as the potential production areas in each region. According to the incoming DA chief, the additional 1 million hectares of rice-producing areas will be able to plug the chronic shortfall in the country’s palay output. At a 60-percent milling recovery rate, he said harvest from these additional areas could yield 4.8 MMT of rice a year. Beefing up the country’s output by nearly 5 MMT will allow the Philippines to export rice to other countries such as Africa, Piñol said.
Health & Life Sciences
Health group backs junk food tax Sunstar 19th Jun 2016
Health experts are strongly supporting the plan of the incoming administration to impose additional tax on junk food. In an interview, Philippine College of Physicians (PCP) Foundation President Dr Tony Leachon said they agree with the plan of President-elect Rodrigo Duterte to get more revenues from unhealthy food products such as junk foods. “We support imposing sin taxes on sodas and junk food... A healthy discussion is needed involving stakeholders,” Leachon said. He even added that the additional tax on junk food and softdrinks can easily be patterned after the sin tax imposed on tobacco and alcohol products. Among them, he said, is by giving more budget allocation for the Philippine Health Insurance Corporation (PhilHealth) in order to make it more capable to help those least able to afford the medical care they require.
India’s Practo Plans to Take Digital Health-Care Success Abroad Bloomberg.com 17th Jun 2016
Practo Technologies Private Ltd.’s audacious goal of bringing order to India’s chaotic health-care system is starting to bear fruit, helping to transform it into the country’s biggest online medical network. Now the startup is planning to go global. Since debuting in 2008, the Bangalore-based company connects 60 million users, 200,000 doctors and 10,000 hospitals. More than 40 million appointments are booked each year via Practo, which also offers online consultations and home deliveries of medicine. Its software and mobile applications link people and doctors, as well as hospital systems, so that they can manage their visits, billing and inventory, while helping patients find physicians and access their digital medical records. The company is expanding in Indonesia, the Philippines and Singapore, and eyeing expansion in Latin America with an initial foray into Brazil in March. Like India, those countries have a multitude of health providers and low penetration of technology, along with an emerging tech-savvy middle class and soaring mobile Internet usage, according to Shashank N.D., Practo’s founder and chief executive officer.
Duterte names DOH, DOT, DTI secretaries Rappler 13th Jun 2016
President-elect Rodrigo Duterte on Monday evening, June 13, announced that he has chosen secretaries for the Department of Health (DOH), the Department of Tourism (DOT), and the Department of Trade and Industry (DTI). Ernie Abella, one of Duterte’s designated spokespersons, said Duterte has picked the following to head these departments: DOH - Dr Paulyn Jean Rosell Ubial DOT - Wanda Corazon Teo DTI - Ramon Lopez Ubial is an assistant secretary of the DOH. Teo is president of the National Association of Independent Travel Agencies. She also reportedly owns Mt Apo Travel and Tours, named after the Philippines’ highest peak found 32 kilometers west of Davao City. Lopez is the executive director of the entrepreneurship advocacy group Go Negosyo.
ICT
PHL needs fast Internet to fuel economic growth Business Mirror 20th Jun 2016
The country’s top financial executives are banking on the incoming administration’s support to modernize the Philippine telecommunications infrastructure to fuel economic growth. George S. Chua, Finex president, told the BusinessMirror on the sidelines of the group’s general membership meeting that advanced telecom infrastructure remains a vital part of growth, not only for the country’s economy but for its financial institutions, as well. “Actually, the impact [of infrastructure upgrade] is, of course, on businesses, because if there’s no connectivity, you cannot have efficient point-of-sale services for companies, and you cannot have good ATM connections and things like that,” he said.
Interconnection signals new era in telco industry BusinessMirror 16th Jun 2016
What the telcos should have done half a decade ago to improve the state of the Internet in the Philippines was cooked up in a matter of months, and was served on Thursday. A new era in the Philippine telecommunications industry arrived, with rival carriers PLDT Inc. and Globe Telecom Inc. agreeing to interconnect their Internet networks to exchange data traffic more efficiently. While this is indeed a welcome development, as this would pave the way for faster information transfer from one provider to another, industry experts believe this should have materialized earlier.
DOST-ICTO transitions to Department of ICT Philstar 13th Jun 2016
The long wait for the Philippines’ new Department of Information and Communications Technology (DICT) isn’t over. The DICT Act of 2015, also known as Republic Act (RA) No. 10844, officially took effect last Thursday, ushering in a new era of governance that is hopefully more focused on ICT as a tool for national development. The law, however, provides for a six-month transition for the full transfer of the functions of existing government agencies involved in ICT development. The Information and Communications Technology Office of the Department of Science and Technology (DOST-ICTO), which has served as the lead implementing agency of the government in ICT matters since its creation in 2011, has been abolished along with other government agencies with ICT functions.
Globe eyes legal route for San Miguel deal with PLDT Business World 12th Jun 2016
“What we’re doing is we’re trying to cooperate with them in terms of giving them as much information as they need for their references. But if all doesn’t go well, and if they will insist, based on certain legality, we’ll have to take our own position. Kasi meron din naman kaming (Because we also have a) legal standpoint,” said Yolanda C. Crisanto, Globe senior vice-president for corporate communications, in a phone interview yesterday. At the end of May, PLDT and Globe Telecom, Inc. announced a plan to buy San Miguel’s telecoms units in a 50-50 deal valued at P69.1 billion. This month, the PCC sent a letter to both parties, reportedly asking them to re-submit their notice given that the filing was deficient in form.
PCC rejects PLDT, Globe report on San Miguel telco buyout Rappler 10th Jun 2016
The Philippine Competition Commission (PCC) rejected the initial transaction report of the Philippine Long Distance Telephone Company (PLDT) and Globe Telecom, Incorporated on their P69.1-billion deal to buy out the telecommunication business of San Miguel Corporation (SMC). "We returned their submission because of incomplete information. We asked the parties to the transaction to refile their notification to PCC. The deal is not deemed approved," PCC Chairman Arsenio Balisacan told Rappler in a mobile phone reply on Friday, June 10. The anti-trust body's decision comes a week after it released its implementing rules and regulations (IRR) for the Philippine Competition Act.
Duterte names ex-schoolmate Rodolfo Salalima DICT head Inquirer 22nd Jun 2016
President-elect Rodrigo Duterte has named a former schoolmate and an expert in the telecommunications field head of the newly formed Department of Information and Communications Technology (DICT). In a statement released on Wednesday, telecommunications giant Globe announced that lawyer Rodolfo A. Salalima was picked by Duterte to head the DICT, “which is mandated to formulate and implement policies that will promote the development and use of ICT in the country.” INQUIRER.net has sought the confirmation from Duterte’s camp about the appointment but has not responded as of posting time. Salalima previously served as a Senior Vice President for Corporate and Regulatory Affairs of Globe until 2008. He is currently the President of the Philippine Chamber of Telecommunications Operators, Inc. (PCTO) and a Board Director of the Telecoms Infrastructure Corporation of the Philippines (TELICPHIL). In 2011, he was tapped Asia Pacific Representative and Vice Chairman of the International Telecommunication Union (ITU) Council Working Group for the Amendment of the ITU Constitution and Convention based in Geneva, Switzerland. He started his career in the ICT as Board Director and Corporate and Chief Counsel of Radio Communications of the Philippines (RCPI) and as Vice President and Head of Legal and Human Relations of International Communications Corporation (renamed Bayantel).
Telcos bow to PCC, seek regulator’s OK Inquirer 17th Jun 2016
PLDT INC. and Globe Telecom on Thursday said they had resubmitted their respective transaction notices to the government antitrust watchdog, which raised questions over the manner they had filed the notice on their joint acquisition of San Miguel Corp.’s telecommunications unit on May 30. The notice was a key step required by circulars issued by the Philippine Competition Commission, whose implementing rules came out days after the P70-billion deal between PLDT, Globe and SMC was sealed. The rules, which outline how the PCC can scrutinize the transaction, would take effect on June 20 this year. Both PLDT and Globe maintained their original stance that the notices were filed on May 30 and that the deal was deemed approved and could no longer be challenged by the PCC.
Can antitrust stop PLDT, Globe telco purchase? Inquirer 13th Jun 2016
“This is their first test and definitely a defining moment for them,” Sen. Bam Aquino said. He meant the new Philippine Competition Commission (PCC) and the P70-billion acquisition of San Miguel Corp.’s telecommunications assets by the Philippine Long Distance Telephone Co. and Globe Telecom. The test must be how objectively the PCC referees the post-Philippine Competition Act (PCA) playing field. Antitrust law is framed by three concepts, well defined after decades of global experience. First, it prohibits anticompetitive agreements by two or more parties. Agreeing to fix prices is the classic example. Second, it prohibits abuse of dominant position by a party. This prohibits abuse, not dominance in itself. Third, it mandates review of acquisitions for anticompetitive impact.
Make DICT ‘policy-centric’ Sun.Star 13th Jun 2016
The newly-created Department of Information and Communications Technology (DICT) should be policy-centric, and as much as possible, allow the private sector to steer the ICT ecosystem in the Philippines, said a Silicon Valley-based magnate. Filipino venture capitalist Diosdado “Dado” Banatao, who was in Cebu last week, said the DICT “should stay on the policy side.” “It must be the industry that has to solve the problem because they (government) don’t have the expertise. It’s just an organization that regulates,” Banatao said. The Filipino venture capitalist particularly criticized the weak regulating power of the government, emphasizing the duopoly of the telecommunications industry. “They should disrupt this duopoly,” he added. President Benigno Aquino III signed into law, Republic Act 10844, a bill creating DICT. The new department is tasked to promote ICT development agenda, institutionalize e-government, and manage the country’s ICT environment, according to the Information and Communications Technology Office (ICTO). President-elect Rodrigo Duterte is yet to name the DICT secretary. Under the law, there will be a six-month transition period for the full implementation of the transfer of functions, assets and personnel. However, existing personnel will continue to assume their posts in holdover capacities until new appointments are issued.
Telcos, competition body dig in Business World 13th Jun 2016
THE COUNTRY’S major telecommunication firms and its freshly minted competition watchdog appear headed for a clash over regulatory requirements for San Miguel Corp.’s sale last month of its telecom business to Philippine Long Distance Telephone Co. (PLDT) and Globe Telecom, Inc. -- a $1.5-billion deal that is expected to provide a litmus test for efforts to improve the Philippines’ business playing field.
Company in focus: San Miguel stays on the right side of Philippine politics- Nikkei Asian Review 9th Jun 2016
San Miguel is arguably the most audacious Philippine company. Once a food and beverage maker, in recent years it has been getting into industries in which it had no prior experience. Now, its expansion mode has shifted to better suit the economic priorities of the incoming government and the country's changing competitive environment. On May 13, San Miguel President Ramon Ang told reporters the much-anticipated launch of his company's mobile broadband service was facing a delay. Nevertheless, Ang said, the service was still on track to break the duopoly enjoyed by Philippine Long Distance Telephone and Ayala Corp.-led Globe Telecom and to do so this year. Weeks later, Ang would make an about-face. On May 30, San Miguel announced it will unload its telecom assets including the highly coveted 700 MHz spectrum housed under Vega Telecom, selling half to PLDT and and half to Globe. Its relatively dormant telecom business was priced at $1.5 billion, around a fifth of Globe's market value. Ang's sudden and dramatic course change is not a total surprise. One sign came in March, when San Miguel terminated talks with Australia's Telstra to set up a telecom joint venture. On May 17, Ang said his company will ramp up its investments and operations in Mindanao, the Philippines' southernmost main group of islands. The announcement of a $1 billion-plus investment package for the region came after the May 9 election saw Davao Mayor Rodrigo Duterte become the country's first president-elect to hail from Mindanao. For a conglomerate that makes 87% of its sales from Luzon, the northernmost and most populous of the Philippines' three main groups of islands, and Visayas, the main group of islands in the central part of the country, the new southern investment plan marks a significant shift.
Globe to deploy free Wi-Fi to MRT 3 stations Business Mirror 9th Jun 2016
MOBILE-services provider Globe Telecom Inc. will soon deploy telco infrastructure in the train stations of the country’s most congested railway line to free up the bottleneck in the telco’s network. Joel Agustin, who sits as the senior vice president of Globe’s program governance and network technical group, said on Thursday his camp has signed an agreement with the operator of the Metro Rail Transit (MRT) Line 3 for the deployment of wireless Internet infrastructure in all of its train stations. He said this would significantly improve the mobile Internet experience and connectivity of the commuting public, who access the Internet via Globe’s network. The executive said the project will also help address existing challenges on mobile signals along Edsa, especially during rush hours. The additional capacity brought by the macro sites and small-cells deployment will help decongest peripheral areas around the train stations, providing improved mobile experience to customers. Globe has set for 2016 a capital-expenditure program of $750 million, the bulk of which will be used to boost data capacity and expand network reach. The carrier will also increase the capacity of its network for both mobile and wirelines using different technologies, including 3G, LTE and Wi-Fi.
PLDT, Globe start rollout of high-speed internet infra Inquirer 8th Jun 2016
Telco giants Philippine Long Distance Telephone Co. and Globe Telecom announced initial rollout plans for the high-speed mobile internet infrastructure across their networks. PLDT spokesman Ramon Isberto said 360 cell sites in Manila, Cebu and Davao would be outfitted with equipment that will use the 700 Megahertz spectrum within 2016. Globe said it would roll this out across 200 cell sites in the next few months. Globe and PLDT on May 30 announced a deal to buy San Miguel Corp.’s telecommunications unit for close to P70 billion. That gave each player equal access to SMC’s valuable radio frequencies, including the 700 MHz band, ideal for covering large geographic areas. Globe fired up its first 700Mhz cell site over the weekend near Hardin ng Bougainvillea in UP Diliman, Quezon City. PLDT chair and CEO Manuel V. Pangilinan, meanwhile, said via his Twitter account that the first 700MHz site was launched in Tanay, Rizal late Tuesday. Joel Agustin, Globe Senior Vice President for Program Governance, Network Technical Group, said in a statement the next step for Globe was to roll out the 700 MHz in 200 sites this year. Globe and PLDT control about 15,000 cell sites across the country. The conservative rollout against their total network comes as device support for this frequency is still limited to high-end smartphones like Samsung’s S6 Edge+, Note 5, S7, S7 Edge, and J5 2016. A Globe spokesperson said the newly acquired SMC assets means the company can bring the technology to more affordable handset models.
Infrastructure
Rody wants emergency powers vs traffic crisis The Philippine Star 21st Jun 2016
DAVAO CITY, Philippines – The traffic mess in Metro Manila has become a crisis that calls for bold solutions, according to the incoming administration. President-elect Rodrigo Duterte will seek emergency powers from Congress to solve the traffic woes in Metro Manila and nearby provinces in a sweeping move that may affect private subdivisions, markets and terminals along major roads. Incoming transportation secretary Arthur Tugade said yesterday he believes the country’s “traffic crisis” can be solved if the incoming president has extraordinary powers that will allow him to implement bold solutions.
Diokno: P1 trillion for public infra Business World 21st Jun 2016
DAVAO CITY -- The incoming administration of president-elect Rodrigo R. Duterte will allot about P1 trillion of its expected P3.5 trillion budget for next year for public infrastructure, said his designated Budget Secretary Benjamin E. Diokno. At a press conference following the opening of the two-day consultation with the business sector here, Mr. Diokno said the amount will be used for small and medium projects like farm-to-market and public school buildings. The intention is to embark on these smaller projects “because they are easier to implement,” he said. “We will make sure that we don’t underspend,” he added.
SM Prime urges govt to fix IRR of REIT law Business Mirror 19th Jun 2016
SM Prime Holdings Inc. and Megaworld Corp. said they will await the review of the implementing rules and regulations (IRR) of the real-estate investment trust (REIT) law before considering the investment option again. The two big property developers said they are interested in REIT, but the government must first remove the stringent measures or at least follow the provisions of Republic Act (RA) 9856, or the REIT Act of 2009. “Well, we wanted something that is very clear that we can really benefit, not only our company, but also the public. It cannot be a one-sided type of implementation. But I believe that is one area that the country can benefit a lot from also,” said Hans Sy, SM Prime president.
RSA, MVP in talks for joint infra ventures Philippine Daily Inquirer 15th Jun 2016
Two of the country’s stiffest corporate rivals are in talks to join forces to build crucial infrastructure for the country under the incoming Duterte administration, beginning with a brand-new international gateway for the metropolis. San Miguel Corp. and the group of businessman Manuel V. Pangilinan have entered into discussions for the $10-billion international airport project along the Cyberbay reclamation area that seeks to match world-glass gateways within the region, but this didn’t gain ground then. San Miguel president Ramon S. Ang told reporters after the company’s stockholders meeting Tuesday that since the airport project was a big undertaking, his group was willing to bring in partners.
Davao regional council seeks Sasa project review Business World 12th Jun 2016
Outgoing Davao del Norte Gov. Rodolfo P. del Rosario, who heads the RDC, said Mr. Duterte’s planners should consider turning the wharf into a cruise tourism facility “rather than operating a [cargo] wharf.” Mr. del Rosario said should the incoming administration decide to drop the Sasa option, a similar port development project could be pursued elsewhere in the region, where there is definitely a need for a huge facility.
Coastline dev’t project awaits Duterte’s OK Business World 12th Jun 2016
“The mayor (Duterte) must sign the Joint Venture Agreement (JVA) for the coastline project before he assumes [presidency] by June 30,” Davao City Investment Promotions Center officer-in-charge Ivan C. Cortez said. By then, Mr. Duterte will be the 16th president of the country and his daughter Sara Duterte Carpio will be mayor of the city. The 200-hectare Davao Coastline and Port Development Project, as proposed by the Mega Harbour Port Development, Inc., will include an international port, industrial and commercial components, residential complex, and a government center. Its approval with the City Council took some time because of issues on the relocation of the informal settlers (estimated at 3,500 families) that will be affected by the project. The signing of JVA between Mega Harbour Port Development Corp. and the City Government of Davao was originally set on April 25, but the signing has been postponed due to the election campaign.
San Miguel betting big on conflict-torn ARMM Business Mirror 12th Jun 2016
SAN Miguel Corp. (SMC) bared plans over the weekend to put up a power plant, develop a port and invest in bulk-water facilities in five predominantly Muslim provinces. The conglomerate said it signed a memorandum of understanding (MoU) with the Autonomous Region in Muslim Mindanao (ARMM) to help develop some of the country’s poorest provinces through investments in emploment-generating industries ranging from energy to ports and bulk water facilities.The noncontiguous ARMM includes Basilan, Lanao del Sur, Maguindanao, Sulu and Tawi-Tawi.It is an Autonomous region in the Philippines and the only region that has its own government.
Next gov’t lays out ambitious infra program Philstar 9th Jun 2016
The next administration is planning to implement an infrastructure program which would cover both government-funded and public-private partnership (PPP) projects within two to three years, according to the incoming Secretary of the Department of Public Works and Highways (DPWH). Public works secretary- designate Mark Villar told reporters the new administration intends to undertake an ambitious and comprehensive infrastructure program which would cover traffic management, disaster management, as well as support the agriculture and tourism sectors. With traffic being among the biggest problems of the country, Villar said he is working with incoming transport secretary Arthur Tugade as early to tackle the issue.
ACV plans $1.2 billion aviation infrastructure development Vietnam Net 15th Jun 2016
Airports Corporation of Viet Nam (ACV), the largest enterprise in the domestic transport sector, will spend about VND26.2 trillion (US$1.2 billion) on aviation infrastructure development over the next three years.In an investment scheme recently sent to the Ministry of Transport, the company said it expects to use some VND7.8 trillion to upgrade facilities in "flight zones" and more than VND18.4 trillion to improve terminals and parking spaces. The firm, which manages 22 of the country's international and domestic airports, said it will prioritise investments for terminals showing high passenger growth and special socio-economic importance.The important airports include Noi Bai in the north, Dong Hoi, Phu Bai and Cam Ranh in the centre, and Tan Son Nhat, Con Dao and Phu Quoc in the south.
BSP eases lending restrictions Business World 14th Jun 2016
However, lending to bank directors, officers, stockholders, and related interests (DOSRI) must still be at “arm’s length,” with the BSP still vigilant for “sweetheart deals” that would involve irresponsible lending. In a statement yesterday, the central bank said its policy-making Monetary Board has raised the limits for banks in terms of lending funds to related parties that are taking on projects identified under the government’s Philippine Development Plan and Public Investment Program (PDP/PIP). “Exposures to subsidiaries and affiliates in PDP/PIP projects shall be subject to higher individual and unsecured limits of 25% and 12.5% of the net worth of the lending bank, respectively, as compared with the ceilings previously set at 10% and 5%,” the central bank said in its press statement.
SMC, MPIC to construct Manila Bay int’l airport The Manila Times Online 14th Jun 2016
Diversified conglomerate San Miguel Corp. (SMC) has agreed to cooperate with Metro Pacific Investment Corp. (MPIC) Chairman Manuel Pangilinan on the proposed Manila Bay international airport. “We have chosen MVP [Manuel V. Pangilinan] as our partner. We are constantly speaking, and our talks were lengthy. We agreed to negotiate for a possible partnership with him, but percentage-wise, we have not agreed on it yet, but I think we are willing to cooperate,” Ramon Ang, SMC president and chief operating officer said after the company’s annual stockholders’ meeting. SMC is capable of building the new international airport facility on its own, but it decided to cooperate with the MPIC chairman. The proposed airport is estimated to cost $10 billion. Ang clarified the cooperation with Pangilinan pertains to the first stage of the construction phase, which would entail a $2 billion investment. The proposed airport would sit on a 1,600-hectare of mainly reclaimed land in Manila Bay and was proposed two years ago to the outgoing Aquino administration. “It will take about five years to complete the entire proposed airport,” Ang said. Ang said SMC would wait for the guidelines of the incoming administration on unsolicited bids such as the proposed airport.
Villar rejects plan to build $13-B Mla Bay airport philstar.com 12th Jun 2016
MANILA, Philippines – Sen. Cynthia Villar appealed to the incoming administration of president-elect Rodrigo Duterte not to pursue the proposed reclamation of Manila Bay as a site for a new international airport. Villar, a known advocate of environmental protection, said the reclamation of Manila Bay would destroy the Las Piñas-Parañaque Critical Habitat and Eco-Tourism Area (LPPCHEA). On March 16, 2012 Villar filed before the Supreme Court a petition or writ of kalikasan. “I appeal to president-elect Duterte to look beyond the claim of decongesting existing airports and realize that the planned reclamation will cause flooding as high as eight meters in Parañaque, Las Piñas and Cavite. It will also deprive 300,000 fishermen of their livelihood,” Villar said. “Attracting tourists and investors should not be proposed at the expense of the Constitutionally-guaranteed rights of citizens for a safe and secure environment to live in,” she added.
Budget department drafts guidelines for funding support for PPP projects Business World 12th Jun 2016
National Budget Circular 564 signed on June 8, orders all state agencies, departments, and units to file a request for an LoC for any PPP project that they will implement which requires any form of funding shelled out from public coffers. “[A]n LoC shall be required to cover budgetary support for National Government obligations under PPP projects approved by the National Economic and Development Authority (NEDA) Board,” the circular read, as published on the Web site of the Department of Budget and Management (DBM) late last week.
‘PH needs infra devt to benefit from rapid Asia aviation growth’ The Manila Times Online 9th Jun 2016
The Philippine unit of the world’s largest aviation industry group International Air Transport Association (IATA) urged the Duterte Administration to give top priority to infrastructure development if it wants to benefit from record growth in commercial aviation in the Asia-Pacific region.
High-speed link with Manila needed to spur Clark use BusinessMirror 8th Jun 2016
Put up a high-speed transport system that will link Clark and Manila, and an action plan by the national government on airport and aviation development that will compel airlines to cooperate. These are the ideas behind the suggestion made by Manila International Airport Authority (Miaa) General Manager Jose Angel A. Honrado to fast-track the transfer of operations from the Ninoy Aquino International Airport (Naia) to Clark Field in Pampanga. Honrado made the suggestion during the signing of a tripartite agreement among Miaa, Civil Aeronautics Board (CAB) and Civil Aviation Authority of the Philippines (Caap). These agencies agreed to efficiently use the available slots for domestic air carriers to lessen air congestion. Honrado said the Naia had reached its maximum limit of 35 million passengers per year and his long-term solution to the congestion problem is to develop and use Clark International Airport. At least 36.7 million passengers used the airport in 2015. He added that Cebu Pacific, Cebgo and Air Asia can initiate the transfer to alleviate the air-traffic congestion in Manila. Miaa Spokesman David de Castro said Honrado made the suggestion in response to criticisms that he had stalled the plans of airlines who wanted to transfer from Manila to Clark.
Manufacturing
Auto industry development scheme kicks off Business World 14th Jun 2016
Toyota Motor Philippines Corp. and Mitsubishi Motors Philippines Corp. are set to be recognized today as the officially approved participants of the Comprehensive Automotive Resurgence Strategy (CARS) program, Trade and Industry Secretary Adrian S. Cristobal, Jr. confirmed to reporters yesterday even as he refused to give details. “It’s just a matter of formalities now. I understand from BoI Managing Head Undersecretary (Ceferino) Perry (S.) Rodolfo, it’s just the formalities now of granting the certificates of award to two car manufacturers that have qualified for the CARS program,” Mr. Cristobal said. The certificates of registration are scheduled to be awarded to the two companies at the Board of Investments (BoI) building today.
New DTI chief to retain CARS Program Business Mirror 20th Jun 2016
The Department of Trade and Industry (DTI) will continue to implement the P27-billion stimulus program for local car makers under the Duterte administration, according to its next chief. Incoming Trade Secretary Ramon Lopez has assured car makers that he has no plans of scrapping the Comprehensive Automotive Resurgence Strategy (CARS) Program.“We will continue the implementation of the CARS Program under the new government and ensure that its goals are effectively realized by working together closely with auto parts makers and assemblers,” Lopez told the BusinessMirror. “We will also pursue strong coordination among government representatives of the inter-agency committee of the CARS Program,” he added.
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