Philippines Update: DAR Proposes Controversial Land Conversion Moratorium

October 18, 2016: Quarterly Coffee with Mr. Patrick Chuasoto, Chargé d'Affaires of the Philippine Embassy

October 19, 2016: Welcome Roundtable with Sung Kim, U.S. Ambassador-Designate to the Philippines

State Dep’t on Duterte’s latest remarks: ‘We’ve spoken to this kind of rhetoric’ Business World 5th Oct 2016
US GOVERNMENT spokesmen continued to reaffirm their country’s historic ties with the Philippines, even on the heels of fresh insults hurled by President Rodrigo R. Duterte at his American counterpart, Barack H. Obama, and at the United States as well as the European Union. Meanwhile -- amid the latest presidential insults in Manila on Tuesday -- the White House, on its Web site and in a “special” message signed by Mr. Obama, marked Filipino American History Month this October, “recognizing Filipino Americans across our country for the many ways they have enriched our society.”

Duterte's China visit could redraw E. Asia alliances Business World 3rd Oct 2016
Philippines President Rodrigo Duterte travels to China next month on a visit that could redraw alliances in East Asia after his incendiary comments about the United States and active courting of Washington's chief rivals. The friendly relationship between the Philippines and the United States has been one of the pillars of Washington's strategic military rebalance to Asia under President Barack Obama. But the alliance has been under strain since Duterte came to power three months ago and chafed at U.S. criticism of his bloody war on drugs, which has led to the killing of more than 3,100 alleged drug users and dealers by police and vigilantes. He has insulted Obama and then made it clear the Philippines will pursue a much more independent foreign policy than it has in the past.

PHL fuels ASEAN factory activity in Q3 BusinessWorld 3rd Oct 2016
According to the Nikkei Philippines Manufacturing PMI, the country’s factories in September registered a seasonally adjusted purchasing manager’s index (PMI) of 57.5, suggesting they ramped up production at the close of the third quarter.The manufacturing PMI consists of five sub-indices, with new orders having the biggest weight at 30%, followed by output (25%), employment (20%), suppliers’ delivery times (15%) and stocks of purchases (10%). A PMI reading above 50 suggests improvement in business conditions, whereas a score below that threshold reflects deterioration.

Philippines, Vietnam agree to level up trade Inquirer 29th Sep 2016
HANOI, Vietnam – President Duterte is encouraging more Vietnamese businessmen to invest as well as to consider importing more products from the Philippines. The President made the appeal in his bilateral talks with Vietnam state president Tran Dai Quang on Thursday at the state palace of Vietnam. Trade Secretary Ramon Lopez said both countries “agreed to really level up the trade that we have by increasing trade numbers.” “The President invited Vietnamese corporations to invest in the Philippines. We’ll protect your investors and your investments, contracts will be honored,” Lopez told reporters. He said that Duterte gave the assurance that Vietnamese investments will be protected, aside from providing a more conducive investment climate in the country.

Duterte in Vietnam for official visit Malaya 29th Sep 2016
PRESIDENT Duterte yesterday said he embarked on a two-day official visit to Vietnam to seek new areas of partnership with the Vietnamese nation particularly in the fields of maritime security and law enforcement as well as to advance a collaborative campaign against illegal drugs trade. The President, on board Philippine Airlines Flight PR001 bound for Hanoi, left at 1:56 p.m. with Cabinet secretaries Perfecto Yasay Jr. (foreign affairs), Ramon Lopez (trade and industry), Vitaliano Aguirre II (justice), Martin Andanar (communications), and Leoncio Evasco (cabinet).

Southeast Asia racing to cut taxes on businesses- Nikkei Asian Review 28th Sep 2016
A number of Southeast Asian countries are lowering corporate tax rates in hopes of attracting more foreign companies. The Philippines plans to slash its relatively high 30% rate to 25% by the end of 2017 -- a centerpiece of its broader tax reform. Manufacturers from Japan and elsewhere have frequently chosen to set up operations in Thailand and Indonesia rather than the Philippines. The government of President Rodrigo Duterte, who took office in late June, seeks to lure manufacturers to smaller localities to create jobs. The ultimate goal is to close the economic gap between the capital and the rest of the country. Vietnam is thinking about lowering corporate taxes for small and midsize businesses. Finance Minister Dinh Tien Dung concedes that the current 20% rate is too high for such companies. It will likely go down to 15-17%. For businesses in villages and smaller cities, a 10% rate may apply. The government hopes to accelerate efforts toward a goal of making Vietnam an industrialized nation by 2020. Thailand also lowered its standard corporate tax rate from 30% to 20% in March, making permanent a temporary cut introduced in 2013 under then-Prime Minister Yingluck Shinawatra.

Duterte seeks alliances with China and Russia Philippine Inquirer 28th Sep 2016
PRESIDENT Duterte said on Tuesday he would build by next year “new alliances” with China and Russia to cushion the fallout from the possible withdrawal of the United States from the Philippines. In a speech in Pampanga province, Mr. Duterte said Filipinos would have to make a small sacrifice for what he had previously declared “crossing the Rubicon” in his ties with the United States while pursuing partnerships with its rival countries or what he called countries on the “other side of the ideological barrier.” “I am asking the Filipino in the coming days, if America will make good its threat, I’m going to ask you to sacrifice a little bit. But by next year, I would have entered into so many new alliances with so many countries,” he said. In a speech on Tuesday evening at the Navy headquarters, Duterte asked the Marines to give him time so “we can get out of this ambit” of the Americans “who have pushed us around, insulted us.”

Filipino president to discuss maritime disputes on Vietnam visit VnExpress International 23rd Sep 2016
Filipino President Rodrigo Duterte will visit Vietnam next week and take part in discussions with local leaders on maritime disputes. Communications Secretary Martin Andanar said that maritime disputes over the South China Sea (known in Vietnam as the East Sea) will be discussed during the visit, which is scheduled for September 28-29. The visit comes in response to an invitation made by Prime Minister Nguyen Xuan Phuc during the recent ASEAN summit in Vientiane, Laos. Vietnam hailed the ruling of an international tribune in The Hague in July that decreed Beijing has no legal basis to claim historic rights to resources in the East Sea. The ruling came after the Philippines filed a case in January 2013 accusing Beijing of violating the United Nations Convention on the Law of the Sea. The three all claim the Spratly Islands, besides Brunei and Malaysia.

BusinessWorld | Duterte a ‘game changer’ in US-China rivalry Business World 20th Sep 2016
In less than three months on the job, the 71-year-old Philippine leader has used expletives in talking about US President Barack H. Obama and vowed to end cooperation with the US military in both fighting terrorism and patrolling the disputed South China Sea. He’s moved to boost economic and defence ties with China and Russia. While Mr. Duterte is unpredictable -- one day calling China “generous” and the next threatening a “bloody” war if Beijing attacked -- his behaviour has undermined US efforts to rally nations from Japan to Vietnam to Australia to stand up to China’s military assertiveness.

Sceptred bile The Economist 17th Sep 2016
UNDER Rodrigo Duterte, the president of the Philippines since late June, things have a habit of spiralling out of control. First came his campaign against the drug trade, which has led to the killing of almost 3,000 suspected dealers by police and unknown assailants, without even a nod at due process. In less than three months, he has presided over three-quarters as many extrajudicial killings as there were lynchings of black people in America between 1877 and 1950. When Barack Obama expressed concern about the killings, Mr Duterte called him a “son of a whore”. America’s president tried to shrug off the insult. But Mr Duterte took the row to a new level this week, calling for American special forces to leave the southern island of Mindanao, where they have been training Filipino troops fighting several long insurgencies. “For as long as we stay with America,” he said, brandishing a picture of an atrocity committed by American soldiers more than a century ago, “we will never have peace”.

PH-China relations at new turning point, says Chinese PM Philippine Daily Inquirer 15th Sep 2016
Relations between China and the Philippines are at a new turning point, and Beijing hopes Manila can meet it halfway and handle disputes appropriately, a top Chinese diplomat told a visiting Philippine delegation. China and the Philippines have been involved in an increasingly ugly territorial dispute in the South China Sea. Beijing claims most of the South China Sea, through which more than $5 trillion of trade moves annually, while Malaysia, Taiwan and Vietnam also have rival claims. An arbitration court in The Hague invalidated China’s claims to the waterway in July in a case filed by the Philippines that defined territorial rights, a ruling which Beijing refuses to recognize.

Yasay on mission to Washington Philippine Daily Inquirer 15th Sep 2016
Foreign Secretary Perfecto Yasay Jr. is set to meet with US Secretary of State John Kerry in Washington on Thursday in an apparent attempt to mend fences with the country’s staunchest military ally after President Duterte called for US troop withdrawal in Mindanao. The Department of Foreign Affairs (DFA) said Yasay would attend a private dinner to be hosted by Kerry on Sept. 15 for visiting senior officials including foreign ministers. He is also expected to attend meetings of the Filipino community, the chief executive officer of the Millennium Challenge Corporation and the Center for Strategic and International Studies.

Yasay: No shift in Philippine policy on US Rappler 13th Sep 2016
President Rodrigo Duterte's statement against the presence of US forces in Mindanao does not signal a Philippine shift in policy on the United States, said Foreign Secretary Perfecto Yasay Jr on Tuesday, September 13. Yasay gave the assurance a day after Duterte said at a public address that he does not want the presence of US special forces in Mindanao, again citing the US pacification campaign in the island group in the early 1900s, that led to the death of hundreds of Moro rebels.

PHL to stimulate small business sector for Asean economic development Business Mirror 8th Sep 2016
THE Philippines will focus on stimulating economic growth in subregions within the Association of Southeast Asian Nations (Asean) when it takes over the chairmanship of the regional bloc next year. In his speech before the Asean Leaders’ Summit in Lao PDR on Wednesday, Mr. Duterte outlined the priorities that the Philippines will push for in the 49-year-old regional bloc’s meetings next year. “First, Asean must ensure the effective implementation of various agreements concluded through the years,” he said. “I note that since the establishment of Asean in 1967, several key economic agreements have facilitated regional economic integration of natural persons and mutual recognition, arrangement of certain professions. It certainly took to an immense amount of effort and compromise, as member-states shared their commitment and political resolve to accommodate and reconcile national interest with the regional the aspiration of one nation Asean community.” “On the part of the Philippines, our economic focus will be toward the promotion of inclusive growth through innovation in four areas: micro, small and medium enterprises (MSMEs), e-commerce, youth and women entrepreneurship,” Mr. Duterte added.

Duterte’s public trust rating steadies in ‘excellent’ territory Business World 10th Oct 2016
The Third Quarter 2016 Social Weather Survey -- conducted on Sept. 24-27 via face-to-face interviews with 1,200 adults nationwide and with sampling error margins of ±3 points for national percentages, and ±6% each for Metro Manila, Luzon areas outside the nation’s capital, the Visayas and Mindanao -- found 83% of those surveyed with “much trust,” 9% undecided, and 8% with “little trust” in Mr. Duterte, yielding an “excellent” net trust rating of +76 (% “much trust” minus % “little trust”).

BusinessWorld | Ramos: Duterte gov’t a ‘huge disappointment’ Business World 10th Oct 2016
In a Sunday op-ed piece in the Manila Bulletin newspaper, much of it written in capital letters, Mr. Ramos said Mr. Duterte’s government has been a “huge disappointment and letdown.” It was a rare criticism of Mr. Duterte by the 88-year-old former president, bucking popular sentiment and a high opinion poll rating for his first 100 days in office. Mr. Ramos also said the government was “losing badly” by prioritizing a controversial war on drugs at the expense of issues such as poverty, living costs, foreign investment, and jobs.

Shifting foreign policy causing unease in military BusinessMirror 9th Oct 2016
PRESIDENT Duterte’s shifting foreign policy toward China and Russia is stirring uneasiness in the Armed Forces of the Philippines (AFP), with soldiers saying their Commander in Chief’s forceful tilting toward the communist and socialist states is bordering on “treason.” On the surface, the President’s relationship with the soldiers looks fine, as shown by his consistent visit to military camps and huddle with AFP officials, but underneath the “good showing” were soldiers who were silently revolting over Duterte’s pro-Chinese stance. “We have been spat on the face by China with its brazen occupation of the West Philippine Sea, and yet here comes our President, who is now offering the whole country to China because of his pro-Chinese and Russian positions,” said one junior officer on Sunday.

Drug war ‘excellent,’ but suspects should live -- SWS poll Business World 6th Oct 2016
THE DUTERTE ADMINISTRATION’s decisive war on drugs -- a policy cornerstone that has lately worried both foreign investors and governments -- has overwhelming support from the public that nevertheless believes it “very important” that suspects are caught alive, according to findings of a Social Weather Stations (SWS) survey.

Duterte off to a ‘very good’ start -- SWS Business World 5th Oct 2016
Results of the survey -- conducted Sept. 24-27 via face-to-face interviews with 1,200 adults nationwide and with sampling error margins of ±3 percentage points for national percentages and ±6 points each for Metro Manila, “Balance of Luzon,” the Visayas and Mindanao -- found 76% satisfied, 11% dissatisfied and 13% undecided regarding Mr. Duterte’s performance in the first quarter of his presidency. That yielded a net satisfaction rating of +64 (% satisfied minus % dissatisfied, rounded off), classified as “very good.”

Obstacles seen in cutting US arms reliance; President can scrap EDCA Manila Bulletin 5th Oct 2016
The Philippines would face major obstacles should President Duterte make good his threat to reduce purchases of United States weapons in favor of Russian and Chinese arms, including re-training a military deeply accustomed to working with the US, experts said Tuesday. The Philippines is the largest recipient of US funds in the Asia-Pacific region under the Foreign Military Financing program, which is provided by the US to help countries purchase American-made weapons and equipment. It received $50 million under FMF in the 2015 fiscal year.

Assessing the first 90 days in office BusinessWorld 3rd Oct 2016
There’s a lot of things I’d like to say, so let me cut to the chase. In the run-up toward the first 100 days, there have been plenty of hits and some misses, and many areas still untouched crying for attention. President Rodrigo R. Duterte (PRRD) is fighting too many battles impulsively in so short a time with limited human resources. Thousands of senior and mid-level positions have yet to be filled up to help craft policy and implement priority programs.

BusinessWorld | PHL tells world not to interfere in anti-drug war BusinessWorld 25th Sep 2016
Addressing the annual UN General Assembly in New York, Mr. Yasay said the Duterte government was “determined to free the Philippines from corrupt and other stagnating practices, including the manufacture, distribution and use of illicit drugs.”“Our actions, however, have grabbed both the national headlines and international attention for all the wrong reasons,” he said. “We urge everyone to allow us to deal with our domestic challenges in order to achieve our national goals without undue interference.”

Employers not happy with ‘endo’ plan Phil Daily Inquirer 20th Sep 2016
The Employers Confederation of the Philippines (Ecop) has cautioned the government on the possible repercussions of the proposed “win-win solution” purported to end the abusive practices of labor contractualization and the controversial end-of-contract (endo) scheme. “We will support the proposal but we have to recognize the need to compromise or soften [it] up to make it more acceptable to our partners in labor,” Ecop president Donald G. Dee said.

BusinessWorld | Locsin appointed ambassador to UN Business World 18th Sep 2016
MALACAÑANG confirmed on Sunday the appointment of journalist, lawyer, and former Congressman Teodoro L. Locsin, Jr. as Philippine ambassador to the United Nations (UN).

Duterte starts to worry US businesses BusinessWorld 8th Sep 2016
THE AMERICAN Chamber of Commerce of the Philippines, Inc. (AmCham) yesterday added its voice to those of European counterparts in flagging the potential negative impact on business of President Rodrigo R. Duterte’s unconventional style and methods in policy and diplomacy. “The American Chamber of Commerce of the Philippines voices growing concern over developments that could harm the long-standing optimism of American business to invest in the Philippines,” the group said in a statement e-mailed to journalists. “While the country’s economic fundamentals are strong and its potential is high, our members have raised concerns that some basic American values -- which Filipinos have long shared -- may be weakening in the current environment.”

Labor contracting will end this year Business Mirror 8th Sep 2016
Labor Secretary Silvestre H. Bello III on Wednesday said the Department of Labor and Employment (Dole) is set to repeal Department Order (DO) 18-A, governing contracting and subcontracting arrangements in the country, in compliance with President Duterte’s order to end the practice of labor contracting. Bello made the announcement at the House of Representatives during the deliberation of the Dole’s 2017 proposed budget of P13.5 billion.

Draft order on PH Customs post-clearance audit out PortCalls Asia 6th Oct 2016
The preliminary version of the customs administrative order (CAO) enabling the Bureau of Customs (BOC) to perform post-clearance audit as stipulated under the Customs Modernization and Tariff Act (CMTA) has been released on September 29. Under the draft CAO, the post-clearance audit function is being returned to BOC after this was transferred to the Department of Finance (DOF) in 2014 with the abolition of the BOC’s Post-Entry Audit Group. DOF said position papers on the draft CAO will be accepted until October 6, the same day a public hearing on the order will be held. The proposed CAO covers the post-clearance audit of all records needed to be kept within three years by all importers, beneficial or true owners of imported goods, customs brokers, agents, and locators as a compliance and revenue measure.

Voluntary disclosure could return to BoC Business World 3rd Oct 2016
IMPORTERS could once more resort to a voluntary disclosure program for errors in their Bureau of Customs (BoC) records, with a draft memorandum order for the implementation of the post-clearance audit provisions of the Customs Modernization and Tariff Act (CMTA) providing for a Prior Disclosure Program (PDP), restoring the bureau’s post-clearance audit functions. In developing the implementing rules and regulations (IRR) of CMTA, the Department of Finance (DoF) and the BoC are currently in consultation with stakeholders to draft Customs Memorandum Orders (CMO), with a view towards implementing the law in parts.

Complicated PH clearance processes to warrant use of customs brokers by multinationals PortCalls Asia 3rd Oct 2016
Multinational companies will likely continue to engage the services of customs brokers even if these become optional two years after implementation of the Customs Modernization and Tariff Act (CMTA), according to an executive of a multinational firm. Under the declarant provision of the recently signed CMTA, engaging the services of customs brokers is mandatory within two years of the law’s implementation, after which it becomes optional.

PH Customs at A Crossroads (Part II) PortCalls Asia 2nd Oct 2016
In October 2013, the previous administration initiated a Bureau of Customs reform program by reassigning 50 of its most senior officials to another office and replacing them with officials from other government agencies, as well as those from the private sector. Many of these new officials were retired military and police officers.

PH Customs at a Crossroads PortCalls Asia 26th Sep 2016
This is a three-part article outlining the major problems confronting the Philippine Bureau of Customs; the previous efforts to reform and modernize the agency; key issues and concerns that continue to confront it; areas for policy and institutional reforms; and the challenges facing the new administration. This article also provides recommendations for specific policy, regulatory, and operational programs, both in the immediate and the medium terms. This article is also being presented at 11th World Customs Organization Partnerships in Customs Academic Research and Development Conference in Manila from 27-29 September 2016.

Tax free, hands-off policy on balikbayan boxes pushed Manila Bulletin 25th Sep 2016
Senate President Aquilino Pimentel III is seeking congressional approval of his bill adopting a “no opening of box” policy of balikbayan boxes by the Bureau of Customs (BOC). The Pimentel measure, Senate Bill No. 1168, also seeks to exempt from taxes and duties imposed under National Internal Revenue Code (NIRC) on one balikbayan box per month regardless of the total dutiable value of its contents. “In recognition of the significant contribution of our OFWs (Overseas Filipino Workers) to our national economy, this legislation is but a small measure of assistance in view of the tireless efforts of our OFWs who work tirelessly abroad and endure long separation and loneliness from their loved ones,’’ Pimentel in his explanatory note to his bill instituting the expanded balikbayan program. A balikbayan box measures 24 inches by 24 inches by 30 inches (24” x 24” x 30”) whose contents shall not be in commercial quantity. Pimentel said relatives and loved ones of OFWs in the Philippines receive 400,000 balikbayan boxes every month on the average.

Proposed memo establishes protocol for issuing alert orders in PH PortCalls Asia 20th Sep 2016
The draft customs administrative order (CAO) that operationalizes how alert orders are to be issued and processed in the Philippines has been released by the Department of Finance (DOF) and Bureau of Customs (BOC). The proposed CAO applies to the protocol BOC should follow when issuing alert orders, pre-lodgement control orders, post-release control orders, and controlled delivery orders. It covers all importations, whether these are for consumption, warehousing, or admission to free zones as defined in Section 102(w) of the Customs Modernization and Tariff Act (CMTA), or Republic Act (R.A.) No. 10863, and whether these are dutiable, taxable or not. Under the proposed rule, an alert order or post-release control order is issued based on derogatory information regarding customs violations. One of these is undervaluation, which should not be general allegations of undervaluation but based on forged or spurious invoice or other commercial documents submitted to customs.

BusinessWorld | Gov’t starts the ball rolling on new customs law Business World 18th Sep 2016
THE DEPARTMENT of Finance (DoF) has set the ball rolling on the implementation of the newly minted Customs Modernization and Tariff Act (CMTA), with customs administrative orders (CAO) to be issued in the interim, an official said last week.The administrative orders will later be consolidated to become the law’s implementing rules and regulations (IRR), newly appointed DoF legal affairs Undersecretary Bayani H. Agabin told reporters.

Duty, VAT claimants can start getting their refund from BOC PortCalls Asia 17th Sep 2016
Some 125 companies with pending duty drawbacks or tax claims may now start processing their claims at the Philippine Bureau of Customs (BOC). Claimants of duty drawbacks or tax claims have 30 days after notification to go to BOC’s Revenue Account Division (RAD) and inquire about the status of their application, according to Customs Memorandum Circular (CMC) No. 119-2016, signed August 30 by Commissioner Nicanor Faeldon and published on BOC’s website on September 14. The advisory came after the release of Customs Special Order (CSO) No. 36-2016, which dissolved the Tax Credit Committee Secretariat, and transferred all applications for duty drawbacks, value-added taxes (VAT), and excise tax claims under BOC’s Office of the Commissioner (OCOM). Of the total applicants, 59 companies have pending VAT claims while 66 have duty drawback claims.

BOC centralizes operations via new command center PortCalls Asia 13th Sep 2016
The Philippine Bureau of Customs (BOC) has created a center that will centralize and coordinate operations, especially in the areas of trade facilitation and border control. The Command Center (COMCEN) was created under Customs Special Order (CSO) No. 45-2016 and signed by Customs Commissioner Nicanor Faeldon. In a statement, BOC said COMCEN will monitor, coordinate, and supervise different aspects of customs administration so that operational data critical for informed decision-making will be easily available. As a result, the public “can expect more transparency in this new initiative,” the agency noted. The center will be headed by former Army Capt. Gerardo Gambala, one of those who participated in the 2003 Oakwood mutiny that denounced corruption and politicization in the military. Faeldon, also a former Marine captain, was part of the mutiny. The center is composed of personnel from the following BOC offices: Intelligence and Enforcement Groups, Assessment and Operations Coordinating Group, Revenue Collection Monitoring Group, and Management Information System and Technology Group, as well as the offices of Risk Management, Accounts Management, and X-ray Inspection project.

Draft memo aims to set in motion new PH de minimis rule PortCalls Asia 8th Sep 2016
A draft Customs Administrative Order (CAO) that operationalizes the de minimis rule under the Customs Modernization and Tariff Act (CMTA) has been released by the Philippine Department of Finance (DOF) and Bureau of Customs (BOC). In an advisory, DOF and BOC said position papers on the draft CAO from interested private and public stakeholders may be submitted until September 1. The proposed CAO on de minimis implements Section 423, pursuant to Section 204 of CMTA. Under that section, no duties and taxes are to be collected on goods with a free-on-board (FOB) or free carrier (FCA) value of P10,000 and below, a departure from the previous de minimis value of P10. Covered by the order are all importations for consumption located at the Customs territory, having an FCA or FOB de minimis value, and entered through any seaport or airport of entry in the Philippines by the importer, consignee, freight forwarder, or air express operator.

Draft order activating PH advance ruling system for I/E goods issued PortCalls Asia 8th Sep 2016
The draft administrative order operationalizing provisions on advance rulings under the Philippine Customs Modernization and Tariff Act (CMTA) has been released for stakeholders’ review. The Department of Finance (DOF) and Bureau of Customs (BOC)-proposed Customs Administrative Order (CAO) establishes an advance ruling system for valuation, rules of origin (ROO), and other matters related to importing or exporting goods. The CAO is pursuant to Section 113 and Sections 1100 to 1104 of Republic Act No. 10863 or the CMTA. Section 113 covers decision and ruling, while Sections 1100 to 1104 focus on classification ruling, valuation ruling, ruling on the rules of origin, conditions for application and effect of advance rulings, and administrative and judicial appeals. Advance ruling—an official written and binding ruling issued by BOC that provides the requesting person with an assessment of origin, or treatment to be applied on a certain element of customs value, or other matters related to the importation or exportation of goods under customs jurisdiction, prior to an import or export transaction for a specified period—is now part of the law. DOF and BOC said the proposed rules on advance ruling incorporate the commitments of the Philippines to the World Trade Organization’s Agreement on Trade Facilitation, the Revised Kyoto Convention, the ASEAN Trade in Goods Agreement (ATIGA), and other relevant trade agreements entered into by the Philippines.

BOC 2016 collection target cut by 18% PortCalls Asia 8th Sep 2016
The Bureau of Customs collection target for 2016 has been slashed by 18% to P409 billion from P498.67 billion on account of the continuous decline in oil prices and imports in recent months, the agency said in a statement. Of the total 2016 collection, the cash collection target is P402.5 billion, 12.6% higher than the 2015 figure of P357.4 billion, but 17.6% less than the original goal of P488.7 billion, as indicated in the 2016 Budget Expenditures and Sources of Financing (BESF). The 2016 BESF target was originally set based on the computation of the 2014 and 2015 actual average cash collections by type and source of tax. The new target was set by the Development Budget and Coordination Committee. Considering BOC’s January to June collection of P190.6 billion, the agency only needs to take in P218.4 billion to reach its revised 2016 target.

Customs 2016 revenue target cut by a fifth BusinessWorld 9th Sep 2016
ECONOMIC managers of President Rodrigo R. Duterte have slashed the collection target for the Bureau of Customs (BoC) this year by almost a fifth amid falling oil prices and lower import volumes. In a statement, the bureau said the inter agency Development Budget Coordination Committee (DBCC) cut the BoC’s revenue target to P409 billion, 19.3% lower than the P498.67-billion goal set under the Aquino administration.

BTPI eyed as expanded logistics center for Subic Bay Freeport BusinessMirror 9th Oct 2016
SUBIC BAY FREEPORT—The Subic Bay Metropolitan Authority (SBMA) is setting its sights on a largely underused economic zone in nearby Morong, Bataan, to accommodate the expansion of the port-logistics facilities in this free port. The 380-hectare Bataan Technology Park Inc. (BTPI), which is less than 30 minutes away from the Port of Subic, could be an ideal place to convert into a central business district for shippers, logistics and other port-related industries, said newly appointed SBMA Chairman Martin Diño. Diño, who took over the SBMA on October 3, said he is eyeing to strengthen and widen trade in the Subic Bay Freeport Zone in order to generate more investment and livelihood opportunities in the Subic Bay area.

Philippines, Singapore Discuss Defense Relations Amid US-ASEAN Meeting The Diplomat 12th Oct 2016
The defense ministers from Singapore and the Philippines met on Friday in Hawaii to discuss the state of their bilateral ties amid uncertainty over new Philippine President Rodrigo Duterte’s foreign policy (See: “The Real Danger of Rodrigo Duterte”). Singapore’s Defense Minister Ng Eng Hen met with his Philippine counterpart Delfin Lorenzana in Honolulu, Hawaii during their journey there for the second ASEAN-U.S. Defense Ministers’ Informal Meeting this weekend (See: “US-ASEAN Defense Ministers’ Meeting Kicks Off in Hawaii”). According to a statement by Singapore’s defense ministry (MINDEF), the ministers affirmed the warm and friendly bilateral defense relationship between the two countries.

Philippines, US halt plans on joint South China Sea patrols philstar.com 7th Oct 2016
Defense Secretary Delfin Lorenzana said Friday that he told the U.S. military that plans for joint patrols and naval exercises in the disputed South China Sea have been put on hold, the first concrete break in defense cooperation after months of increasingly strident comments by the country's new president. Lorenzana also said that 107 U.S. troops involved in operating surveillance drones against Muslim militants would be asked to leave the southern part of the country once the Philippines acquires those intelligence-gathering capabilities in the near future. President Rodrigo Duterte also wants to halt the 28 military exercises that are carried out with U.S. forces each year, Lorenzana said. Duterte has said he wants an ongoing U.S.-Philippine combat exercise to be the last during his six-year presidency as he backs away from what he views as too much dependence on the U.S. Duterte, who took office in June, has had an uneasy relationship with the U.S., his country's longtime treaty ally, saying in recent speeches that he wants to scale back the presence of visiting U.S. troops in the country, along with the annual bilateral military exercises. But while some Filipino officials have walked back on Duterte's sometimes crude anti-U.S. pronouncements — early this week he told President Barack Obama "to go to hell" — Lorenzana's comments show for the first time that the Duterte administration will act by rolling back cooperation with the U.S. military in the Philippines.

President blasts US anew, threatens end to EDCA Business World 3rd Oct 2016
PRESIDENT RODRIGO R. Duterte, in a new verbal assault on the United States on Sunday has threatened a review of its Enhanced Defense Cooperation Agreement (EDCA) with the Philippines. “May I remind the Americans, itong (this) EDCA, it is an official document but it was only signed by an aide at [and former Defense Secretary Voltaire T.] Gazmin. It does not bear the signature of [former President Benigno S. C.] Aquino [III],” Mr. Duterte said as the main guest at the Masskara Festival in Negros Occidental, an annual cultural event that took on a political tone with his presence. The EDCA is an executive agreement with Washington which aims to implement Manila’s two treaties with the world power -- the Mutual Defense Treaty of 1951 and the Visiting Forces Agreement of 1999.

PH, Vietnam seen to review defense cooperation in Duterte visit Inquirer 28th Sep 2016
Hanoi, Vietnam—President Rodrigo Duterte’s visit to Vietnam is a good opportunity for both countries’ leaders to revisit their mutual defense and maritime cooperation, particularly in fighting transnational crime. Philippine Ambassador to Vietnam Noel Servigon noted that the two countries can also further improve its maritime cooperation and trade relationship with the visit of Duterte. “This would also be good opportunity to meet and review our defense cooperation because the Vietnam and the Philippines have new sets of defense leaders. We recommended that this will build a closer relationship through mutual visits,” he said in an interview with RTVM.

Stronger alliance with Vietnam seen mb.com.ph 27th Sep 2016
Hanoi – Economic and defense relations between the Philippines and Vietnam are expected to be enhanced when President Duterte makes a two-day official visit to Vietnam this week. The President, with several Cabinet members in tow, is scheduled to arrive in Hanoi Wednesday night for a visit that coincides with the 40th anniversary of Philippines-Vietnam relations this year.

Philippines to procure coastal surveillance system IHS Jane's 360 26th Sep 2016
The Philippines Department of National Defense (DND) has re-launched a programme to procure a coastal surveillance system aimed at boosting securing of the country's offshore assets. The DND said in a tender announcement cited by the government's News and Information Bureau on 23 September that the programme is worth PHP256.3 million (USD5.3 million) and features the acquisition of three coastal watch stations and one support centre, which will be based in Northern Luzon.

PH needs world support on sea row The Manila Times 25th Sep 2016
AN official of the Department of National Defense told a recent Japan-Asean Vice-Ministerial Meeting that the Philippines needs the support of the international community as Beijing remained recalcitrant in not recognizing and abiding by an international tribunal ruling against its sweeping claims to the South China Sea (West Philippine Sea).

No safe haven for Abu Sayyaf NST Online 17th Sep 2016
MANILA’S newly minted president, Rodrigo Duterte, has zero tolerance for any kind of violence except that which will help the country rid itself of the criminals spawning mayhem all over the Philippines. Manila declared war on two fronts. Surrender, flee the manhunt or die, these are the only options open to the Abu Sayyaf terrorists in southern Philippines and the drug peddlers and drug lords all over the country. That evidence available suggests he has no time to pander to any sympathy for these two groups is resulting in them fleeing the battlefield looking for some safe haven. According to reports many consider Sabah to be such. To date 37 Filipino nationals have been arrested attempting to enter the country illegally and by all accounts hundreds more are waiting on nearby islands in the Sulu Sea for the opportunity to slip through Malaysia’s security net.

Philippines commits to procurement diversification IHS Jane's 360 16th Sep 2016
The Philippines' Department of National Defense (DND) is committed to diversifying its military procurement partners in order to secure the "best equipment" at competitive prices, the DND's chief of public affairs, Arsenio Andolong, has told IHS Jane's .

Military projects open to all proponents regardless of country of origin – DND Update Philippines 16th Sep 2016
Military projects must be open to all bidders regardless of their country of origin, the Department of National Defense (DND) public affairs office chief Arsenio Andolong said Wednesday.

Duterte Seeks Arms From China, Ends Joint Patrols With U.S. Bloomberg 13th Sep 2016
Philippine President Rodrigo Duterte said he’s considering buying weapons from Russia and China while also ending joint patrols with U.S. forces in the South China Sea.

Duterte Wants U.S. Special Forces to Leave South Philippines Bloomberg 13th Sep 2016
Philippine President Rodrigo Duterte said U.S. troops must leave the southern island of Mindanao, saying their presence would worsen the situation in the Muslim-majority area long riven by insurgency and terrorism. The Philippines will review its policy of allowing American forces to combat terrorist groups in Mindanao, Duterte said Monday in a speech in Manila. As many as 1,300 U.S. special forces troops have been present on the island since 2002.

Foreign investors put PHL investments on hold after Duterte's remarks – AmCham official GMA News Online 10th Oct 2016
Foreign investors have put on hold their planned investments in the business process outsourcing sector (BPO), after the recent pronouncements of President Rodrigo R. Duterte against the United States, the American Chamber of Commerce of the Philippines (AmCham) said on Monday. "(They) have decided not to go ahead is what we were told," AmCham Senior Advisor John Forbes said in a text message. He noted some investors looking to set up shop in the Philippines, specifically in the BPO sector, have decided not to push through with their plans at this point.

BusinessWorld | Business takes stock of Duterte pros and cons Business World 6th Oct 2016
BUSINESS LEADERS are seeking clearer policy directions in the face of “some confusion” from pronouncements made in the first hundred days of the administration President Rodrigo R. Duterte. Foreign and local businesses cited public pronouncements in mining, labor, agriculture, transportation, and international relations that have them playing a guessing game on intentions of the country’s chief executive.

BusinessWorld | Execs’ view of corruption worsens Business World 5th Oct 2016
AN OTHERWISE generally favorable business perception of the Aquino administration’s fight against corruption worsened as its term drew to a close, as indicated by more business executives who felt that irregular practices became prevalent in 2016, according to a Social Weather Stations (SWS) survey.

Hanjin collapse a threat to Philippine growth Philippine Star 3rd Oct 2016
Multilateral organizations said the collapse of South Korean giant Hanjin Shipping Co. Ltd. is a threat to the economic growth of the Philippines. In its Asian Development Outlook, multilateral lender Asian Development Bank (ADB) said weaker-than-expected export demand from the country’s major markets is among the threats to sustained economic growth for the Philippines this year. Economic managers penned a gross domestic product (GDP) growth of between six and seven percent this year from 5.9 percent last year.

BusinessWorld | Diokno: No worries over peso, ‘winners and losers’ seen Business World 3rd Oct 2016
In a series of public pronouncements yesterday apparently intended to calm the markets, Mr. Diokno also disputed claims that the currency’s slide was due to unguarded comments by President Rodrigo R. Duterte concerning foreign investors. In a briefing, the Department of Budget and Management (DBM) chief said inflation was not an issue even with the currency weakening to its weakest level against the dollar in more than seven years. “The fear is that the depreciation of the peso will result in higher inflation. This is misplaced. The official inflation target is 2-4%. We are much lower than 2%,” Mr. Diokno said. “The last I looked at it, it’s 1.4%, and that basically because of the sharp drop in oil prices a year and a half ago, remember?” In separate remarks made at the Philippine Investment Conference 2016, Mr. Diokno addressed the “strong likelihood that the [United States Federal Reserve] will increase interest rates, that’s why hot money is going out -- that’s a vote of confidence for the United States,” Mr. Diokno said.

Exporters buck proposed P125 minimum wage hike Philippine Star 3rd Oct 2016
Exporters are opposing the proposed nationwide P125 minimum wage increase as it would affect economic growth and the country’s trade competitiveness. In a position paper, Philippine Exporters Confederation Inc. president Sergio Ortiz Luis Jr. said cost of production of goods and services would increase as a result of the massive across-the-board daily wage increase which he noted is “not productivity-based.” Ortiz-Luis said companies could not just simply pass on the increased cost of goods to the market mainly because of the competition offered by low-cost imports and smuggled goods. “In the process, companies which are unable to recover the increased cost of production would have no other choice but either to retrench or worse, close shop, or simply go underground, rather than risk severe penal sanctions,” he said.

2016 service-merchandise exports may be flat, at best Business World 3rd Oct 2016
TOTAL Philippine exports -- both services and goods -- may not grow at all this year, at best, amid muted global trade, a top private sector official of the Export Development Council (EDC) said. Sergio R. Ortiz-Luis Jr., president of Philippine Exporters Confederation, Inc. and EDC private sector vice-chairman, said that he personally believed that total export performance could end either flat or negative for the full year, compared to the downward-revised 3% 2016 EDC target. “Right now, the target is 3% which includes services. Unfortunately... baka even the 3% is difficult to beat,” he said in a Sept. 29 telephone interview.

No US ‘manipulation’ in currency fall, Diokno says Business World 3rd Oct 2016
BUDGET Secretary Benjamin E. Diokno said the peso’s weakness was not due to any manipulation by the United States, contrary to claims made by President Rodrigo R. Duterte. “What you call portfolio investment or ‘hot money’ is going out of the country... It’s rational behavior on the part of short-term investors. Where they can gain more, they will invest there... This is happening not only here but worldwide,” he told reporters on Wednesday on the sidelines of his Senate confirmation hearing. The peso fell to its lowest level in seven years on Monday, which Mr. Diokno attributed to fund flows shifting in favor of the US, after the Federal Reserve signaled a move to higher interest rates. The impending rate hike, while improving the rate of risk-free return in the US, has also been taken to mean greater confidence in the US economy’s prospects. Mr. Duterte, in a speech delivered on Tuesday, said the sinking peso is the result of the US trying to undermine the Philippines, marking the latest in a series of turbulent remarks directed at Washington, a treaty ally pledged to come to Manila’s defense in the event of war.

WB sees ‘significant upside’ potential to Philippine growth outlook BusinessWorld 3rd Oct 2016
THE PHILIPPINES will remain among East Asia and the Pacific’s fastest-growing economies despite lingering uncertainty abroad and over “the ultimate direction of macroeconomic policy” under the new administration that assumed office at end-June, the World Bank said yesterday

‘Ban on land conversion to worsen housing mess’ BusinessMirror 2nd Oct 2016
THE implementation of a two-year ban on land conversion would keep millions of poor families homeless and delay the government’s infrastructure projects, according to the National Economic and Development Authority (Neda). Socioeconomic Planning Secretary and Neda Director General Ernesto M. Pernia said the Neda has circulated a two-page position paper opposing its implementation to members of the President’s economic team. Pernia said there is already a draft executive order  to create the two-year ban. However, this policy is being held in abeyance awaiting the opinion of the economic team. “The economic team is against it. It’s not a good policy because it’s a blanket policy and there are many lands not suited for agriculture, so why ban these lands from being converted?” he said.

Philippine competitiveness drops in WEF survey PhilStar 28th Sep 2016
The Philippines ended nearly a decade of gains in the World Economic Forum (WEF) Global Competitiveness Index, slipping 10 notches in this year’s report that ranks the most competitive economies. The country ranked 57th among 138 economies this year, a drop from its 47th position among 140 economies last year, the WEF Global Competitiveness Index 2016-2017 report showed. WEF said the Philippines’ 10-point decline in this year’s rankings marks the first time in the 10 years under its current methodology the country has gone down in the standings. “The country appears to be going backwards vis-a-vis its peers in some of the more complex areas of competitiveness,” the WEF said. The Philippines’ technological readiness ranking fell 15 places to 83rd, while business sophistication dropped 10 spots to 52nd.

IMF backs Duterte's plan to widen Philippine budget deficit Bloomberg 28th Sep 2016
The International Monetary Fund said it supported plans by Philippines’ President Rodrigo Duterte to boost spending and widen the budget deficit as it forecast faster economic growth in the Southeast Asian economy. Raising the fiscal gap to 3 percent of gross domestic product starting in 2017 would allow for higher infrastructure and social spending “while ensuring fiscal sustainability,” the Washington-based lender said in a statement on its website. Economic growth is forecast to quicken to 6.7 percent in 2017 from an estimate of 6.4 percent this year, it said.

Competitiveness council eyes tougher ‘doing business’ target Business World 27th Sep 2016
THE NATIONAL Competitiveness Council (NCC) plans to set a tougher goal for the country next year by aiming to make it to the top 25% or even 20% of all the countries monitored by the World Bank in its ranking of economies with the easiest environment for doing business, the agency said on Thursday.

IMF, ADB expect Philippines to ‘perform strongly’ despite headwinds Business World 27th Sep 2016
In separate reports, IMF and ADB said Philippine gross domestic product (GDP) is poised to grow by 6.4% this year, picking up from the 5.9% climb posted in 2015. The figure is higher than the IMF’s 6.2% estimate given in February and ADB’s earlier 6% forecast. The IMF likewise raised its estimate to a 6.7% growth next year from 6.2% previously, while ADB now pegs 2017 growth at 6.2% from 6.1%.

Philippine risk from US policy shift flagged BusinessWorld 26th Sep 2016
A SHARP TURN in immigration and trade policies in the United States could hit the Philippines through the remittances and outsourcing channels -- two key sectors of the local economy, Moody’s Investors Service said. In a Sept. 22 report released on Friday, the credit rater flagged a potential risk ahead of a change in leaders in the world’s biggest economy, amid hints of decreased foreign involvement in platforms presented by US presidential candidates Hillary R. Clinton and Donald J. Trump.

Tax reforms to boost purchasing power BusinessMirror 25th Sep 2016
WHILE the Duterte adminis-tration is seriously consi-dering the proposal to lower personal income-tax (PIT) rates, the public should also be prepared to face its consequences as the government is also planning to impose additional taxes on several commodities.

BusinessWorld | Duterte on credit raters: ‘So be it. Leave’ Business World 22nd Sep 2016
So went President Rodrigo R. Duterte’s remarks in a series of impromptu speeches on Thursday, following reports of the Philippines’ credit rating by Standard & Poor’s (S&P), which maintained the country’s rating but flagged “rising uncertainties” in his administration and qualified as “unlikely” a higher rating in the next two years. Malacañang on Thursday welcomed this development, with Communications Secretary Martin M. Andanar saying: “We welcome S&P’s decision as it gives government greater resolve to make our economy growth robust, sustainable and inclusive.” But in the course of his speeches that day, Mr. Andanar’s boss, Mr. Duterte, was alternating in his rhetoric between modesty and otherwise. Asked about the credit rating, Mr. Duterte said: “So be it. Lumayas kayo (Leave). We’ll start on our own. I can go to China, to Russia. They’re waiting for me.”

Credit rater flags non-economic risk Business World 20th Sep 2016
“Economic and demographic fundamentals continue to drive a strong domestic demand story, as indicated by nearly 7% growth in the first half of the year. The new administration’s economic policies appear sound, targeting higher infrastructure and education spending, among others,” global debt watcher said in a Sept. 19 report released yesterday. “However, international investors may be getting worried about potential diplomatic complications and short-term law-and-order issues on the ground,” the report read, noting that “[t]he peso has been one of the region’s weakest performers since June.”

Committed foreign direct investments on the rise as of first half Business World Online 19th Sep 2016
Preliminary data from the Philippine Statistics Authority (PSA) show that foreign direct investments (FDI) registered with the country’s seven investment promotion agencies (IPAs) rose by 11.5% to P40.4 billion in the three months ending June from P36.2 billion in the same period last year. IPAs pertain to government agencies that by law are allowed to grant tax and non-tax incentives to investors putting up businesses or expanding existing ones in the country. The seven IPAs are the Board of Investments (BoI), Philippine Economic Zone Authority (PEZA), Clark Development Corp. (CDC), Subic Bay Metropolitan Authority (SBMA), Authority of the Freeport Area of Bataan (AFAB), Cagayan Economic Zone Authority (CEZA) and the BoI-Autonomous Region of Muslim Mindanao (BoI-ARMM).

PHL not equipped vs economic crime BusinessMirror 8th Sep 2016
The Philippines is one of the least- equipped countries in the world to respond to economic crimes, according to the PricewaterhouseCooper’s (PwC) Global Economic Crime Survey. Consultancy firm PwC Consulting Services Philippines Co. Ltd. said on Thursday the Philippines ranks fourth among 115 countries, with the least confidence in its law-enforcement units to combat economic crime. The survey identified economic crime as a broad term that includes cybercrime, anti-trust, accounting fraud, espionage, etc. Fifty-eight percent of Philippine respondent-companies said we are not adequately resourced to combat economic crime. Only three companies exhibited even less confidence: Kenya, South Africa and Turkey,” PwC Managing Principal Benjamin Azada said in a news briefing.

Soleco puts up 1st picohydro power plant in Philippines philstar.com 10th Oct 2016
MANILA, Philippines – Southern Leyte Electric Cooperative Inc. (Soleco) has put up a picohydro power generation system, the first of its kind in the country, state-run National Electrification Administration (NEA) said. In a statement, NEA said Soleco’s picohydro system, which started operating in Aug. 12, utilizes tail water from the Hanabian Minihydro Power Plant and generates power of up to 600 watts with maximum water flow velocity of 4.6 meter per second. It has partnered with Helios Altas and DA Green Power Consultancy which also undertook development of project feasibility studies. Using the mechanism of a waterwheel, the picohydro system has an engineered suspension system for easy mounting, making it one of the most adaptable small-scale renewable energy (RE) technologies to environmental changes. 

CCPI reiterates push for nuclear energy Manila Bulletin 10th Oct 2016
The Chamber of Commerce of the Philippine Islands (CCPI), the country’s oldest business chamber of Filipino businesses, has reiterated its push for the government to go into nuclear power energy saying cheaper power cost will be key to the country’s industrialization. CCPI President Jose Luis Yulo, Jr. has called for the operation of the mothballed 620-megawatt Bataan Nuclear Power Plant (BNPP) as the Chamber initiates a forum on nuclear energy to be held today. “With the spiraling high cost of energy in the country, our organization supports the operation of the 620- megawatt BNPP to accelerate the economic progress of the Philippines through industrialization,” said Yulo. In the position paper on nuclear energy released recently by the Chamber, it said, “the index poverty in the country remains high, so is unemployment.” “The only solution to create jobs is by massive industrialization and agricultural development.”

DOE submits 100 days accomplishments to Duterte The Manila Times 8th Oct 2016
THE Department of Energy (DOE) counted the electrification of more than 13,000 households, the start of a technical audit of power plants, and a review of the financial status of troubled cooperatives among its accomplishments in the first 100 days since the Duterte administration took office, the agency reported on Friday. Referring to a memorandum for the President Rodrigo R. Duterte to be received by Executive Secretary Salvador C. Medialdea and Undersecretary and Acting Head of Presidential Management Staff Ferdinand B. Cui Jr., DOE Secretary Alfonso G. Cusi said that, “The DOE reported its feats on the implementation of electrification in the rural and depressed areas, institutional and international partnerships and energy stakeholders’ welfare and promotion.”

BusinessWorld | EU launches P6-B program for PHL energy programs Business World 8th Oct 2016
THE European Union (EU) has P6 billion waiting to be tapped by proponents of energy projects in the Philippines, with the possibility of replenishing the allocation depending on how the money is spent, the EU ambassador to the Philippines said on Friday. “We have some flexibility in our development cooperation program,” said Franz Jessen, who heads the EU delegation to the country, on the sidelines of the fourth EU-Philippine energy meeting at the Makati Shangri-La hotel. “It depends very much on how the needs in the Philippines develop and how the objectives of the government develop over time,” he told reporters.The budget may be allocated to what EU called Access to Sustainable Energy Programme (ASEP), for which it budgeted P3 billion last year to support the Department of Energy’s (DoE) electrification target.

Nickel falls most in 3 weeks as PHL supply woes ease BusinessMirror 5th Oct 2016
NICKEL posted the biggest loss in three weeks, as supply concerns eased amid speculation that Philippine mines could avoid shutdowns after a government audit of producers. Nickel Asia Corp. said on Tuesday it’s confident that the Hinatuan Mining Corp. unit, among those slated for closure unless it fixes shortcomings, will not be suspended. The country’s top miners’ group said on Tuesday that while there remains a real threat to many companies’ existence, the one-page letters from the environment department to members detailing grounds for suspension often listed administrative matters.

Meralco eyes deals with renewable energy firms Business World 3rd Oct 2016
MANILA Electric Co. (Meralco) is on the lookout for more deals with renewable energy companies after it received an offer from two solar farm developers for electricity supply at P5.39 per kilowatt-hour, which are way below the current subsidized rate for solar energy. "We always continually review our portfolio,” said Lawrence S. Fernandez, head of Meralco’s utility economics. “We’re waiting for other proponents if they can beat the price that was offered,” he said, referring to proposed power supply agreement from two solar power developers. Meralco, the country’s biggest distribution utility, received power supply offers from Solar Philippines Tanauan Corp. and PowerSource First Bulacan Solar, Inc., for which it asked a “price challenge” from other suppliers as required by the Energy Regulatory Commission. “They have around a month to submit alternative offers,” he said. “We’ll have to wait for the deadline.”

DENR to issue guidelines for post-audit mining operations Business World 3rd Oct 2016
THE ENVIRONMENT Department said last week it may soon issue guidelines that will serve as new policies for the remaining miners following a two month-long audit that now threatens to close three-quarters of the country’s total metal mines. "Magkakaroon ng [there will be an] administrative order... very soon,” Department of Environment and Natural Resources (DENR) Undersecretary Leo L. Jasareno told BusinessWorld after the agency’s meeting with the miners on Thursday. The order aims, among other purposes, to make more stringent the existing rules on the Environmental Management Bureau’s issuance of environmental compliance certificates and biodiversity management assessment of mine sites, and to put in place a so-called total economic valuation framework particularly to asses the economic efficiency of miners’ social development and management program (SDMP).

Energy chief welcomes SEC okay of Shell’s IPO Manila Bulletin 29th Sep 2016
The Department of Energy (DOE), which has long been prodding Pilipinas Shell Petroleum Corp. to go public, has welcomed the decision of Securities and Exchange Commission (SEC) to allow the Royal Dutch Shell Plc. unit to proceed with its R30-billion market debut. “That’s a good development and confidence building to the Philippine economy,” Energy Secretary Alfonso Cusi said in a text message, referring to SEC’s decision to finally approve Pilipinas Shell’s planned initial public offering (IPO) at the Philippine Stock Exchange (PSE). An official from Pilipinas Shell also told Manila Bulletin that the approval is a welcome development for the company and would send good signal to both foreign and local investors.

20 more mines face suspension Business World 27th Sep 2016
THE Environment department has identified 20 more metal mines that face suspension for various infractions under a nationwide audit that began in July, which if added to 10 earlier halted would comprise nearly three-fourths of 41 such facilities spread across the country.Bloomberg reported after the announcement that nickel surged as much as 2% to $10,745 a metric ton (MT) on the London Metal Exchange, the highest since Aug. 12, and traded at $10,675 at 10:50 a.m. in London, recovering from a 2.7% loss. Last month, prices surged to $11,030/MT as the audit got under way, the highest in a year. The Philippines is the world’s biggest producer of nickel -- which is widely used in construction and electronics -- and accounts for more than 90% of China’s nickel ore imports.

Cement, power sectors face closer PCC scrutiny Manila Bulletin 27th Sep 2016
The cement and power sectors face closer scrutiny by the Philippine Competition Commission (PCC), which received multiple allegations for alleged anti-competitive practices involving structure and personalities of these sectors. PCC Chairman Arsenio Balisacan said the quasi-judicial body is looking into a number of matters, spanning a diverse set of sectors such as power, cement and rice, that have been brought to the attention of the PCC.

DOE targets faster RE applications PhilStar 25th Sep 2016
The Department of Energy (DOE) is working to further reduce the application process for renewable energy (RE) from 45 days to just 25 days for its speedy implementation to meet the energy needs of the country. This is compliance with President Rodrigo Duterte’s mandate to speed up processing of public dealings across all government agencies, DOE Undersecretary Felix William Fuentebella said. “We are looking at implementing section 23 of the DOE Act, which provides for 10 calendar days for other agencies to act and resolve pending DOE projects and DOE endorsed projects,” he said. The DOE will initially streamline its the processing before working with other government agencies, the government official said. “We will work within the DOE to streamline our own process then we will have a dialog, and a MOA (memorandum of agreement) if possible, with other agencies,” Fuentebella said.

Philippines: Oil imports drop in 1st half Hellenic Shipping News 19th Sep 2016
The country’s oil import bill in the first half fell by almost 29% to $3.39 billion as the cost of shipping of crude and petroleum products dropped, allowing oil companies to take in bigger volumes. “This was attributed to lower import cost (for both crude and petroleum products) although petroleum product import volume increased,” the Department of Energy (DoE) said in its latest oil supply and demand report. Finished products accounted for 57.6% of the total oil import cost, while crude oil made up 42.4%, data show. The importation of crude oil, which amounted to $1.44 billion, dropped by 37.2% from $2.28 billion a year ago due to the lower cost, insurance and freight (CIF) per barrel to $37.837 from $59.664 a barrel. Total product import cost also dropped by 21.4% to $1.95 billion at an average CIF cost of $44.36 per barrel from $2.48 billion a year ago at $66.40 per barrel. The figures were computed based on an average dollar rate of $46.90 to a peso in first-half 2016 as against $44.55 a year ago.

New energy sources urgently needed in wake of Malampaya’s depletion Update Philippines 19th Sep 2016
“The government must redouble its efforts in exploring and developing new energy sources. The government must find a way to fill the void that will be left in the wake of Malampaya’s depletion,” Senate Energy Committee Chairman Senator Win Gatchalian said Monday. He noted that Malampaya gas facility is expected to close when its service contract expires in 2024. Malampaya is presently the only source of fuel for Philippine natural gas plants. He said Malampaya is presently responsible for approximately 2,700 MW of installed energy generating capacity. He added that even if the government decides to extend the life of the Malampaya contract, the gas field is projected to be completely depleted by 2030.

Split functions eyed for ERC, PCC Manila Bulletin 18th Sep 2016
The Energy Regulatory Commission (ERC) and Philippine Competition Commission (PCC) are already hammering out an arrangement that shall split their functions in handling anti-competitive cases in the power sector. The proposal will be for the ERC to undertake preliminary investigation of lodged anti-competition cases; while the PCC takes charge of the evaluation process.

Duterte: Unnamed president waived billions owed by power plant PhilStar 14th Sep 2016
MANILA, Philippines -- President Rodrigo Duterte alleged Tuesday that a previous administration waived P7 billion in government receivables from a power plant for unknown reasons. Speaking to airmen and airwomen at the Villamor Airbase in Pasay, Duterte said he would not allow the government to lose money because of a failure to collect proper taxes. “I’m telling everybody: Do not do it in my time because I promised the Filipino a clean government. It will be a clean government. There will be no corruption. Even the exemption of taxes and waiver of billions. The game here involves billions, believe me,” Duterte said. “We have a receivable from an energy plant of P7 billion. It was waived. For what reason? I really do not know,” he added.

US-Philippine economic relations seen to remain strong PhilStar 14th Sep 2016
MANILA, Philippines – Economic relations between the United States and the Philippines are “unlikely” to suffer as a result of President Duterte’s damaging comments against its long-time ally, lender and development partner. “Unlikely to have impact,” Socioeconomic Planning Secretary Ernesto Pernia said in a text message yesterday. Budget Secretary Benjamin Diokno agreed. “There is unlikely to be any problem since investors are usually looking at macrofundamentals,” he said in a phone interview. Admitting he is not a “fan” of the US, Duterte intentionally missed a summit with US President Barack Obama, not before Duterte criticized Obama over the possibility of raising human rights issues on Duterte’s anti-illegal drug war.

ERC defers grant of FIT-COC to 2nd-wave solar projects Manila Bulletin 13th Sep 2016
Almost half of the “incentive qualifiers” in the second-wave solar projects’ race may not get their feed-in-tariff certificate of compliance (FIT-COC) because of a re-investigation of the award process sought by the Department of Energy. Taking off from that premise, the Energy Regulatory Commission (ERC) indicated to media that it will defer decisions on applications for FIT-COC of the projects and capacity-installations earlier endorsed by the DOE for FIT incentives. ERC Commissioner Alfredo J. Non said “for those applying for FIT-COC with the ERC, we are giving them a regular COC only until the completion of the investigation of the DoE. Read more at http://www.mb.com.ph/erc-defers-grant-of-fit-coc-to-2nd-wave-solar-proje...

Senate panel eyes lifting ban on government-built power plants BusinessMirror 8th Sep 2016
SENATORS are discussing options to lift existing restrictions that prohibit the government from spending for the construction of additional power plants. Sen. Sherwin T. Gatchalian, chairman of the Senate Energy Committee, confirmed that a technical working group is currently studying the possibility of allowing the government to build new plants to ensure continuous power supply.  Gatchalian issued that the statement amid recent reports the Luzon grid went on red alert due to low supply. Asked if this will require the passage of remedial legislation, Gatchalian told reporters he was not ruling out such a possibility.

Strong banks, reserves to help PHL through volatility, DoF says Business World 3rd Oct 2016
THE Philippines can avoid the negative effects of volatility on the global financial markets due to the strength of the banking system, reserves and business profits, according to a statement released by the Department of Finance (DoF). "The country’s strong reserve position, its healthy banking system and profitable corporates should help the country avoid the deleterious effects of financial volatility from the Fed normalization,” said DoF Undersecretary and former Chief Economist Gil S. Beltran in a report submitted to Secretary Carlos G. Dominguez III. Year to date, the Philippine stock market’s performance improved by 11.7% said Mr. Beltran, almost thrice the 4.4% average reported for 11 economies in Asia. The Philippines performed better than Vietnam, whose stock market improved 4.8% year to date, South Korea at 4.92% and Hong Kong at 9.24%. There was a decline in the stock markets of China (-13.86%), Japan (-13.03%), Malaysia (-1.74%) and Singapore (-0.89%).

PHL to beat regional peers in e-commerce BusinessMirror 30th Sep 2016
The digital-commerce industry in the Philippines is expected to balloon to more than $10 billion in less than a decade despite roadblocks, such as the relatively slow Internet speeds, the lack of trust in online purchasing and minimal engaging content from brands. Zoe Lawrence, who sits as the digital director for market-research company Kantar Taylor Nelson Sofres (TNS), said the Philippine digital market will even surpass its peers in Asia and the Pacific, all of which are expected to have an e-commerce market value of $5 billion each. “One of our colleagues from Kantar Retail shared that by 2025 e-commerce will be a $5-billion business in every market in Asia Pacific, but the estimates show that the number will more likely be $10 billion in the Philippines by 2025,” she said in a media briefing on Friday.

DOF plans to grant amnesty to unpaid internal revenue taxes Manila Bulletin 29th Sep 2016
Finance Secretary Carlos Dominguez III says that the government has plans to grant an amnesty on all unpaid internal revenue taxes. It is in part of the Duterte administration’s effort to reform the tax system which is under the House Bill (HB) No. 3655, stating that any person or corporation who wants to avail of the tax amnesty will file a notice and Tax Amnesty Return with the Bureau of Internal Revenue (BIR) accompanied by a statement of assets, liabilities and networth (SALN) as of December 31, 2015. In addition, DOF will submit to Congress the Tax Reform Package 1-B early 2017 which will include some healthy measures sugar and sin taxes.

House bucks DOF’s tax-reform package BusinessMirror 29th Sep 2016
THE leadership of the House of Representatives on Thursday rejected the Department of Finance (DOF)-proposed offsetting measures to recover the estimated P179 billion in revenues that will be lost due to the planned lowering of personal income-tax (PIT) rates. Speaker Pantaleon D. Alvarez said instead of removing the value-added tax exemptions for senior citizens and persons with disabilities (PWDs), as well as imposing excise tax on petroleum, the finance department and its attached agencies should improve their tax-collection efficiency. “Rest assured that the lower chamber will always be on the side of the people. We will not allow these kind of [antipoor] proposals here in the House of Representatives,” Alvarez said in an interview.

New PIT bill to cost government P179 billion annually Business Mirror 27th Sep 2016
Workers earning P250,000 or less a year will be exempted from paying personal-income tax (PIT) should the 17th Congress approve the first tranche of the Department of Finance’s (DOF) tax-reform package. To make up for the estimated P179 billion in foregone revenues annually from lowering income-tax rates, the DOF is planning to expand the value-added tax (VAT) base by reducing the coverage of its exemptions, such as scrapping the privileges granted to senior citizens and persons with disabilities. The DOF will also adjust excise taxes imposed on petroleum and restructure the excise tax on automobiles except for buses, trucks, cargo vans, jeeps, jeepney substitutes and special purpose vehicles. Under the DOF bill, which was recently submitted to Congress and will be authored by House Committee on Ways and Means Chairman and Quirino Rep. Dakila Carlo Cua, the tax will be computed in accordance with and at the rates established in the two schedules.

BSP readies tighter hold on money service firms BusinessWorld 25th Sep 2016
The BSP wants to tighten its hold over so-called money service businesses (MSBs) that consist of money changers, foreign exchange dealers, remittance agents and e-money issuers. A draft circular now under industry consultation showed that sub-agents -- or partners of a network of local or international remittance service providers -- must also be accredited by the BSP as they operate in the Philippines, as part of efforts to prevent MSBs from being used as a “conduit for money laundering and terrorist financing.”

PH leads talk on Green Finance Manila Bulletin 18th Sep 2016
The Philippines has called on ASEAN markets to actively pursue Green Finance or the issuance of bonds that addresses climate change. During the ASEAN Capital Markets Forum (ACMF) in Indonesia, Securities and Exchange Commission (SEC) Commissioner Ephyro Luis B. Amatong discussed about Green Finance or the issuance of bonds/investments that address climate change. SEC continues to actively engage with its ASEAN peers in progressing the ASEAN capital markets.

Gov't to impose higher tax on 'ultra rich' earning over P5M a year Rappler 15th Sep 2016
People earning at least P5 million ($105,400) a year face higher taxes as Finance Secretary Carlos Dominguez III bared a plan to hike their personal income tax rate. Dominguez said on Wednesday, September 14, that the Duterte administration’s plan to lower the personal income tax rate to 25% from 32% excludes those with annual earnings of P3 million and above. At the oathtaking of finance officials at the main office of the Land Bank of the Philippines, Dominguez said the government plans to hike the personal income tax rate of those earning over P5 million per year to 35% from 32%.

NFA-Davao imports 166, 000 sacks of rice from Thailand Davao Today 11th Oct 2016
DAVAO CITY, Philippines — The National Food Authority in this city has imported 166, 000 sacks of rice from Thailand which would be distributed across Davao region and several parts of North Cotabato, an official said Monday. Edegary Roncal, NFA Davao new managing head, told Kapehan sa Dabaw the new stock of imported rice arrived earlier this month at the Terminal Facilities and Services Corporation (TEFASCO) this city. Roncal said that 166,000 imported rice were part of the estimated 400,000 sacks of rice or equivalent to 20,000 metric tons being unloaded at the TEFASCO port. “This is just the first volume that we have received, that is the part of the 250,000 metric tons which was contracted with the Philippine government this remaining months of the year 2016,” she said.

Duterte’s #First100Days | President urged to revisit agricultural policies of past administration Bulatlat 7th Oct 2016
But even without drought or any other calamity, studies show that Filipino farmers who produce food experience hunger the most. Eighty percent of families relying on agriculture are food insecure, according to the 2013 survey of the Food and Nutrition Research Institute (FNRI). Seventy-five percent of the rural households are also food insecure, the same FNRI study revealed. The same FNRI survey showed that seven out of ten Filipino families are food insecure. Alborme’s region, Northern Mindanao, is the fourth most food insecure region. The Autonomous Region of Muslim Mindanao (ARMM) ranked first as the most food insecure; Eastern Visayas is second and Zamboanga Peninsula is third.

Coca-Cola FEMSA bullish on Philippines but sees challenges Business World 6th Oct 2016
COCA-COLA FEMSA Philippines, Inc. is having a “good” year as the national elections coincided with warm weather that encouraged people to drink more soda, but next year could prove to be a challenge, according to its top official. “[2016 is] a very good year because of the weather,” Fabricio Ponce, the company’s chief executive officer, said on Wednesday, as he gave journalists a tour of Coca-Cola FEMSA’s Canlubang plant. “We were blessed.” For instance, recent typhoons skirted the Philippines, hitting China and Japan instead. The current stretch of fair and warm weather also prompted people to turn to soda to cool off. “Another (factor) is presidential elections in the Philippines. We have analyzed the information in the past 15 years -- a presidential election is always a good year in terms of economic growth,” Mr. Ponce said. He declined to disclose sales and other financial figures as the company’s parent firm, which is listed outside the Philippines, is on a “quiet” period ahead of the announcement of its third-quarter results. Mexico’s Coca-Cola FEMSA S.A. de C.V. entered the country in 2013 when it acquired 51% of Coca-Cola Bottlers Philippines, Inc. from US multinational The Coca-Cola Co. From 2013 up to the first half of this year, Coca-Cola FEMSA’s investments in the Philippines have reached P97 billion. “We are here for the long term,” Mr. Ponce said of the investment, which the company previously disclosed at around $800 million from this year until 2020.

Senate bill seeks to expand crop insurance Business World 3rd Oct 2016
A BILL filed in the Senate will seek to make crop insurance mandatory for certain classes of rice farmers and those cultivating other staples. Senate Bill 1171 or the Expanded Crop Insurance Bill was filed by Senator Francis N. Pangilinan, who noted how farmers routinely become indebted during times of calamity. “We should help our farmers ensure their sacrifices are not for naught, especially during typhoon season,” said Mr. Pangilinan Thursday. Under the bill, “crop insurance shall be compulsory for those with loans for palay under supervised credit programs and optional for self-financed farmers provided they agree to place themselves under the supervision of agricultural production technicians.”

Renegotiations for rice QR too late, says Cabinet exec PhilStar 28th Sep 2016
Renegotiating for the country’s extension on the quantitative restriction (QR) on the main Filipino staple food is way behind schedule, the Office of the Cabinet Secretary said. “It’s too late to renegotiate (for another extension). We have to be forward looking, we have to prepare that it (QR) will be lifted by June 2017,” Office of the Cabinet Assistance System Undersecretary Maia Chiara Valdez said. This is contrary to what the Department of Agriculture (DA) is planning to do which is to review the possible extension as it conducts consultation with stakeholders nationwide. Should the Philippines decide to extend the QR, World Trade Organization (WTO) member-countries that wish to seek concession for allowing the extension would have to negotiate with the country, which would normally take at least one year of negotiations.

Philippines backs drive against illegal fishing BusinessMirror 20th Sep 2016
THE Philippines announced its participation in a United States initiative against illegal fishing during a conference in Washington, D.C., late last week. Launched by US Secretary of State John Kerry, the initiative, called the Safe Ocean Network, is aimed at creating a global community to better combat illegal fishing around the world through knowledge sharing and better coordination. More than 40 counterillegal- fishing projects, worth over $82 million, are affiliated with the Safe Ocean Network. Partners include Australia, Bahamas, Bangladesh, Cabo Verde, Canada, Chile, Costa Rica, the European Union, Gabon, Ghana, Indonesia, Italy, Japan, the Netherlands, New  Zealand, Norway, Palau, Panama, the Philippines, Portugal, Senegal, Seychelles, Spain, the United Kingdom, the United States and Vanuatu; and other non-governmental  and multilateral institutions dealing with the issue of illegal fishing.

DA unveils P200-million loan program for farmers BusinessMirror 20th Sep 2016
The Department of Agriculture (DA) said on Tuesday it has launched a P200-million loan program in its bid to provide affordable credit to farmers and fishermen in the country. Dubbed as the Program for Unified Lending to Agriculture (Punla), Agriculture Secretary Emmanuel F. Piñol said it will cover the 10 poorest regions in the country—Apayao, Negros Oriental, Zamboanga del Norte, Lanao del Sur, Cotabato, Sarangani, Maguindanao, Eastern Samar, Western Samar and Northern Samar. “This is part of the government’s effort to provide trouble-free services to rural communities, as we want to make things easier for them,” Piñol said at the recent launch of Punla in Northern and Eastern Samar. He said Punla was created to allow farmers and fishermen to easily avail loan programs, as current credit systems have stringent loan requirements.

Philippines to boost food exports to the EU Fresh Plaza 13th Sep 2016
The Philippine's Department of Trade and Industry’s Center for International Trade Expositions and Missions (CITEM) is taking advantage of the country’s zero tariff privileges in the European Union (EU) to push food exports to the region. CITEM is taking top Filipino food producing firms to France for this purpose by showcasing their products at the Salon International de l’Alimentation (SIAL) Paris on October 16 to 20. “Vaunted as the world’s largest food innovation exhibition, SIAL Paris is also the second biggest global food show after Germany’s Anuga. In 2014, SIAL Paris housed 6,500 exhibitors from 104 countries, and welcomed 155,766 visitors from 194,” said CITEM Executive Director Rosvi C. Gaetos. The Philippines gained the EU-GSP+ beneficiary status in December 2014, giving duty-free access to the EU market for 6,274 Filipino product items. Before, only 2,442 of Philippine products are eligible for zero duty and 3,767 for reduced tariffs.

PH woos China-Asean investment in agribusiness The Manila Times 13th Sep 2016
In line with its aim to increase agricultural and rural productivity, the Duterte administration is pitching the country’s rural areas as an attractive investment destination at the China-Asean business and investment summit in this southern Chinese city of Nanning. Promoting rural and value chain development toward increasing agricultural and rural enterprise productivity and rural tourism is a key provision in the 10-point socioeconomic agenda that President Rodrigo’s economic team unveiled in June. “Our main focus is on agriculture and infrastructure, farm tourism,” said Felicitas Agoncillo-Reyes, the assistant secretary for the Investments Promotion Group of the Board of Investments (BOI), and a member of the Philippine delegation to the 13th China-Asean Expo (CAEXPO) and the 13th China-Asean Business and Investment Summit.

Creation of separate fisheries dep’t pushed; Senate sets hearing Manila Bulletin 13th Sep 2016
The creation of a separate department that will manage and regulate the fisheries sector is now being pushed for as the current government structure doesn’t allow the sub-industry to prosper. Senator Francis Pangilinan, who chairs the Senate Committee on Agriculture and Food, is set to conduct the first hearing on separate measures seeking to create Department of Fisheries and Aquatic Resources (DFAR) tomorrow (September 15). Pangilinan said he wants a new Cabinet-level agency that is separated from the Department of Agriculture to manage the fisheries sector. “The DA is able to fulfill its mandate for aquamarine and fisher folk but in a limited sense. We should correct this by creating a high-level government agency that will focus on this,” Pangilinan said.

Philippines seeks China’s help to develop agriculture sector PhilStar 13th Sep 2016
The Philippines is seeking China’s help to boost its underperforming agribusiness sector as part of the Duterte administration’s rural development agenda. In an interview, Board of Investments assistant secretary of the investment promotions group Felicita Agoncillo-Reyes said promoting the country’s agribusiness industry is on top of the government’s agenda in this week’s 13th China-ASEAN Expo (CAEXPO) and China-ASEAN Business and Investment Summit (CABIS). “We already qualified the kind of investments that our country needs. We would like investments that will benefit more people. Agribusiness is number one because that’s the one that has been left behind. Manufacturing is growing but agriculture remains small. So the challenge is to make agribusiness grow,” Reyes said.

Gov’t to slap higher tax on rice imports after QR expires mb.com.ph 8th Sep 2016
To protect the farmers, the Philippine government has vowed to slap higher tariff on rice imports amid its decision not to extend the quantitative restrictions (QR) on the staple food. Socioeconomic Planning Secretary Ernesto Pernia said the Philippines will not seek further extension on QR on rice. This move, according to National Economic and Development Authority (NEDA) Deputy Director General for Policy and Planning Rosemarie Edillon, will be supported by imposing higher tax on imported rice. QR is an agreement with the World Trade Organization that limits the volume of rice that can be imported by the private sector at 805,200 tonnes. The QR, which is extended until 2017, is meant to lessen the pressure among local farmers to compete with subsidized, cheaper imported rice that comes from other countries.

PHL, Vietnam eye agri deal to boost trade Business Mirror 3rd Oct 2016
Manila and Hanoi are keen on forging an agri-fishery agreement to expand agricultural trade between the Philippines and Vietnam, according to President Duterte. Trade Secretary Ramon M. Lopez, who accompanied Mr. Duterte on his state visit, told reporters on Thursday that the President agreed to start talks for a mutual recognition agreement (MRA) on food safety and quality-control management.“There was an agreement toward developing an MRA on food safety and quality-management control, especially for agricultural and aqua, fishing and marine-resources products,” Lopez said via text message. MRAs are considered as trade-facilitation tools, as they ensure that inspection and certification system of one country is equivalent to that of another, providing the same level of protection.

PCC seeks halal product certification Business MIrror 28th Sep 2016
he regional units of the Philippine Carabao Center (PCC) in Mindanao are set to conduct a study on product development targeting carabao-based products to be certified as halal.Certifying a product as halal indicates that it its preparation adheres to Islamic law, as described in the Koran. The 36-month project, which obtained an initial funding of P670,900, will be headed by Paraguas and will be supported by PCC at University of Southern Mindanao (USM), and Jane Tranquilan of Mindanao State University, who will act as a halal product consultant.

DA: Duterte orders release of P60B coco levy fund Malaya 22nd Sep 2016
Agriculture Secretary Emmanuel Piñol said President Duterte has instructed the Department of Agriculture to work with lawmakers for the release of P60 billion coco levy fund to help coconut farmers in Mindanao.Piñol said Duterte in the last Cabinet meeting told him and presidential legislative liaison officer Atty. Adelino Sitoy, former mayor of Cordova, Cebu, to work with Congress ways on how the fund now in national coffers can be released to farmers. Piñol said he suggested to Duterte that the bigger portion of the fund be used in replanting areas devastated by cocolisap (insect infestation of coconut trees) and introducing measures to stop the spread of the infestation. The rest of the fund will be set aside for scholarships and other projects for coconut industry beneficiaries, he added.

DAR wants 2-year moratorium vs agri land conversion ABS-CBN News 13th Sep 2016
A two-year moratorium on the conversion of agricultural lands is being proposed by the Department of Agrarian Reform (DAR) after getting a go signal from President Rodrigo Duterte, a top official said Tuesday. The Presidential Agrarian Reform Council (PARC) is working on an executive order (EO) that will place a moratorium "on the processing and approval of all applications for all land-use conversion of agricultural lands for non-agricultural uses," Agrarian Reform Secretary Rafael Mariano said. If implemented, the moratorium will apply to all awarded lands under Republic Act 6657, Presidential Decree 27 and other agriculture reform laws. Under the proposed EO, a task force will be created to assess the status of land use conversion in the country, and will also give DAR the power to call upon the support of other implementing agencies. "There is a state policy to preserve agricultural lands to ensure food security," he said. A policy review and formulation committee will also look into existing administrative orders issued by the department under previous administrations.

‘Government would invest more in farm infrastructure’ BusinessMirror 8th Sep 2016
The government will increasingly focus on developing and improving farm infrastructure, such as irrigation facilities, Socioeconomic Planning Secretary Ernesto M. Pernia said on Thursday. Pernia, who is also director general of the National Economic and Development Authority (Neda), said the local farm sector is also in need of “good quality” transportation infrastructure.

Smoke-free Philippines awaits Duterte signature PhilStar 10th Oct 2016
MANILA, Philippines – Good news for anti-smoking advocates: President Duterte is expected to sign this month an order declaring a nationwide smoking ban. Health Secretary Paulyn Ubial reported that the draft executive order providing for a smoking-free Philippines is awaiting Duterte’s signature. “We already submitted the draft executive order and the President will probably sign it within October,” Ubial told reporters. Ubial said the executive order is almost a duplicate of the ordinance providing for a total smoking ban in Davao City. Once the executive order is signed and becomes effective, all public places in the country will be 100 percent smoke free.

BAT okay wiith Duterte's planned no-smoking EO Business World 10th Oct 2016
Health Secretary Paulyn Jean B. Rusell Ubial said Mr. Duterte is set to sign an executive order banning smoking in all public places nationwide. Ubial said the smoking ban in all public places will be patterned after the smoking ban being enforced in Davao City. “Such bans are already being implemented throughout the country at varying degrees of enforcement, as already enshrined in RA [Republic Act] 9211, or the Tobacco Regulations Act of 2003. We don’t see any issue with the new administration pushing for a more uniform enforcement across all local government units [LGUs],” Lafferty said in a statement. RA 9211 already prohibits smoking in the following public places: schools and centers of youth activity; elevators and stairwells; locations in which fire hazards are present; within the buildings and premises of public and private hospitals, health centers and similar institutions; public conveyances and public facilities, including airport and ship terminals, and train and bus stations, restaurants and conference halls, except for separate smoking areas; and food-preparation areas. For all other areas where nonsmokers may be exposed to tobacco smoke, smoking and nonsmoking areas should be established.

National hotline for mental health assistance now open Rappler 13th Sep 2016
The Department of Health officially launched on Tuesday, September 13, a national hotline that will provide help to people with mental health concerns. The department partnered with the Natasha Goulbourn Foundation (NGF) for the HOPELINE Project, a 24/7 crisis support hotline for depression and suicide prevention. The agreement, according to the DOH, covers the provision of communication equipment and a professional team of counselors trained to handle private and confidential information. "The responders...have been trained by psychiatrists and psychologists, it's a very intensive training, and we also screen them in terms of their mental capacity, in terms of their emotional capacity, and in terms of their educational background. These are professionals that will be answering the hotline," Health Secretary Paulyn Ubial told reporters on Tuesday.

Mexico joins Philippines, Brazil with dengue vaccine CTVNews 13th Sep 2016
While the world awaits a Zika vaccine, the first ever injection against dengue fever is spreading, with Mexico becoming next week the latest country where people can get the shot. French pharmaceutical giant Sanofi presented its Dengvaxia vaccine to doctors at an event in eastern Mexico on Saturday; people aged nine to 45 will be able to get the shot from their physicians from Monday. After public programs were launched in the Philippines and Brazil's state of Parana this year, the company is rolling out the vaccine in the private sector in Mexico while health authorities prepare a public immunization plan. The head of Sanofi's dengue program, Guillaume Leroy, told AFP in Mexico City that the company already has one million doses ready in the country.

First Case of Zika Virus in the Philippines Confirmed, Health Officials Worried iTech Post 9th Sep 2016
"She tested positive for both strains of the virus" - A 45-year-old married woman from Iloilo City marked the first case of Zika virus in the Philippines confirmed by Philippines' Department of Health Secretary Paulyn Jean B. Rosell Ubial. Upon arrival at the local hospital in Western Visayas on August 31, urine and blood samples that were collected from the victim tested positive for Zika virus. The patient complained of skin rash and joint pains, which are common symptoms of Zika virus, but did not have a fever. Contrary to rumors, she is not pregnant, which saves her from the possibility of having a baby with birth defects like microcephaly (which is commonly linked to Zika). DOH suspects that the virus was transmitted to the patient since she had no history of travelling to Zika-affected countries in the past two weeks.

DOTr keen on accepting unsolicited proposals for aviation-sector projects BusinessMirror 10th Oct 2016
While it may seem that the strategy of the Duterte administration in enhancing air connectivity in the Philippines is through the Public-Private Partnership (PPP) Program, the government is still open to accepting unsolicited proposals to further speed up initiatives to reduce the infrastructure backlog in the sector.

PCC to CA: Nullify PLDT-Globe deal BusinessMirror 5th Oct 2016
THE Philippine Competition Commission (PCC) has asked the Court of Appeals (CA) to declare the P70-billion buyout by PLDT and Globe of San Miguel Corp.’s (SMC) telecommunications subsidiaries as void and for the whole transaction to be undone.

‘IT-BPM to grow into $250-B industry by 2022’ The Manila Times 25th Sep 2016
Philippine players in the information technology and business process management (IT-BPM) should pursue a new game plan to sustain the industry’s growth trajectory as demand in the sector is expected to double by 2022, the Department of Trade and Industry (DTI) said. According to DTI Secretary Ramon Lopez, the total global opportunity for the IT-BPM industry is expected to grow from the current $166 billion to $250 billion by 2022. “The Philippines has been growing at more than twice the global market growth rate over the past five years,” he said during the general membership assembly meeting of the Information Technology and Business Process Association of the Philippines (IBPAP) on September 22. Lopez called on industry players to work with the government in crafting a new game plan that that will enable the industry to create more jobs and contribute to inclusive growth. As the IT-BMP Industry Roadmap 2011-2016 nears conclusion with target revenues of up to $25 billion and an employee base of 1.3 million by year-end, a new industry roadmap for 2017-2022 is slated to be made public next month.

Globe finishes TV white-space trial for wireless overhaul BusinessMirror 25th Sep 2016
MOBILE services operator Globe Telecom Inc. has finished television white-space trial for wireless backhaul, a feat that will help the company maximize the use of available spectrum and subsequently improve its wireless-data services. Globe Senior Vice President for Network Technologies Strategy Emmanuel Estrada said TV white space, which refers to the unused TV channels between the active ones in the very high frequency (VHF) and ultra high frequency (UHF) spectra, enables his company to reach far-flung communities that have no fiber backhaul.

Telcos, realty firms support IBPAP’s Roadmap 2022 The Manila Times 14th Sep 2016
Real estate developers and telecommunications companies have pledged to support the Roadmap 2022 of the Information Technology and Business Process Association of the Philippines (IBPAP). Roadmap 2022 is a comprehensive six-year developmentplan to chart the growth course of the industry, as the country’s thriving information technology and business process management (IT-BPM) sector continues to grow and more countries express interest in the Philippines as a solid investment destination. Industry enablers and IBPAP’s property and telecommunications partners Ayala Land, Double Dragon Properties, Federal Land, Filinvest, Globe Telecom, Leechiu Property Consultants, Megaworld, PLDT, Profriends, Robinsons Land and SM Prime Holdings joined the Roadmap initiative and maintained their commitment to support the growth of the sector by continuously aligning with IT-BPM companies’ needs and ICT demands as they continue to expand into areas outside Metro Manila, transforming previously untapped and undeveloped localities into bustling IT-BPM hubs. The property and communications sectors are preparing for the exponential growth the Philippines is expecting as, according to research partner Frost & Sullivan’s preliminary findings, the industry is expected to grow by up to more than 700,000 seats in the next five to six years.

17% of PH companies fall victim to cybercrime The Manila Times 9th Sep 2016
Seventeen percent of companies surveyed in the Philippine experienced some form of cybercrime in the past 24 months. “Some companies are starting to think of outsourcing their … cyber security to managed services or by putting more of their applications and data in the cloud,” PwC Philippines’ Consulting Managing Principal Benjamin Azada said on Thursday. The PwC 2016 Global Economic Crime Survey covered 6,335 respondents from 115 countries, with 1,287 or roughly 20 percent from the Asia Pacific region. Eighty-eight companies in the Philippines took part in the survey, primarily from the manufacturing, financial services, business process outsourcing, automotive and services industries. Engaging leadership in dealing with cyber incidents is critical, but board members in only 36 percent of the companies asked for more information on their organizations’ state of cyber readiness, according to PwC. Philippine companies are in a dilemma in terms of spending on cyber protection, Alexander Cabrera, PwC chairman and senior partner, said.

NTC seeks P1-million fine a day vs ‘erring’ telcos BusinessMirror 8th Sep 2016
The National Telecommunications Commission (NTC) has urged Congress to increase from P200 to P1 million a day the amount of fine against “erring” telecommunication companies (telcos). NTC Commissioner Gamaliel A. Cordoba, during the deliberations of the Department of Information and Communications Technology’s (DICT) and its attached agencies’ 2017 proposed P3.5-billion budget on Wednesday, said a heavy penalty against telcos will address poor signal and slow internet connection in the Philippines. The NTC is one of the attached agencies of the newly created DICT.

BusinessWorld | 12 PPP projects go full throttle Business World 18th Sep 2016
TWELVE infrastructure projects costing at least P265.31 billion are in different stages of procurement under a public-private partnership scheme, including the operation and maintenance of Light Rail Transit Line 2 (LRT-2) and five regional airports, an official of the Public-Private Partnership (PPP) Center of the Philippines said on Wednesday.

NEDA to craft national transportation plan Business Mirror 23rd Sep 2016
The National Economic and Development Authority (Neda) said it will draft a Philippine Transportation System Master Plan to improve the country’s logistics system and boost economic growth in rural areas. Documents obtained by the BusinessMirror indicated that the government will spend P120 million to complete the plan in two years.The plan will involve both urban and rural areas and not just Metro Manila. It will integrate various modes of transport, such as roads, railways, urban transport and airports nationwide.

Govt junks MetroPac’s MRT bid Manila StandardToday 13th Sep 2016
The Duterte administration rejected Metro Pacific Investments Corp.’s offer to rehabilitate and improve the operations of Mass Rail Transit Line 3. Metro Pacific president Jose Ma. K. Lim said the company revived its offer to take over the operations of MRT Line 3, but the Transportation Department believed the government could do the job faster. Metro Pacific said in June it submitted to the Duterte administration a proposal to rehabilitate MRT 3 on its own. The previous Aquino administration also rejected the offer of the conglomerate. MRT-3 carries close to 600,000 passengers a day, above its designed daily capacity of 350,000. Metro Pacific submitted a proposal to the Transportation Department in 2011, offering more than $500 million worth of investments from the private sector to rehabilitate and upgrade MRT-3. The group’s proposal did not prosper as the offer included raising fare for the train system. The Transportation Department also said the government was more inclined towards an open and transparent competitive bidding.

Gov’t readies P1-T railway projects Philippine Daily Inquirer 8th Sep 2016
The Duterte administration has unveiled a P1-trillion nationwide pipeline of railway projects, most of which will be located in Luzon and Metro Manila where traffic congestion was at its worst, apart from urban centers in Cebu and Mindanao. The administration also committed to “redouble” infrastructure improvement such that the government plans to roll out five more road maps aimed at sustaining economic development, Socioeconomic Planning Secretary Ernesto M. Pernia said Wednesday.

DPWH creates ad-hoc transparency body for ‘big-ticket’ infra projects BusinessMirror 8th Sep 2016
The public can expect a more transparent monitoring of infrastructure initiatives being undertaken by the public works department, after the agency decided to form an ad-hoc body that will oversee the implementation of such projects. The Infrastructure Monitoring Advisory Groups, according to the Department of Public Works and Highways (DPWH), will “enable participatory and transparent monitoring” during construction stage of big-ticket projects. “Every major or big-ticket infrastructure project will now be monitored by an ad-hoc body to ensure its quality and timely implementation,” it said on Thursday.

Stick to existing CARS rules, industry asks gov't Philippine Daily Inquirer 15th Sep 2016
A vehicle industry leader has urged the government to ensure the “consistent policy implementation” of the Comprehensive Automotive Resurgence Strategy (CARS) program, as it would be unfair to existing participants if its provisions would be tweaked in the middle of the game. Rommel Gutierrez, president of the Chamber of Manufacturers of the Philippines Inc., was reacting to proposals to downscale the requirements and incentives under the CARS program to fill in the third and last slot for the said incentive scheme.