| Regional Affairs
Rebooting our relations with the US philstar.com 4th Dec 2016
The six-day firefight in Butig, Lanao del Sur between the military and the Maute Group has devastated the town and displaced residents. But while the Armed Forces has recaptured the area, members of the terrorist group have vowed retribution, promising to behead their enemies including the President. Last June, the military successfully flushed out elements of the Maute Group but obviously, they managed to regroup, with the Maute brothers Omar and Abdullah having reportedly aligned with the Islamic State in Iraq and Syria or ISIS. This potential terrorist alignment with the ISIS underscores even more the importance of maintaining our close relationship with the United States especially with the exchange of vital information. Over the years, intelligence information from the United States has proven to be critical in helping pinpoint terrorist strongholds in the country. Even on the issue of illegal drugs, the US has been actively supporting our efforts, cooperating with Philippine authorities with many of the drug busts at the airport having come from tips provided by the US Federal Bureau of Investigation and the Drug Enforcement Administration. Although there are apprehensions regarding diplomatic relations between the Philippines and the United States – which is quite understandable considering the strong rhetoric of President Duterte against the US in the past, plus the uncertainty triggered by the election of Donald Trump as the next US president – a reboot in diplomatic relations seems to be ready to go. The phone conversation last Friday night between President Duterte and president-elect Donald Trump is the perfect way to start.
Duterte: Trump says Philippines tackling drug problem 'the right way' CNN 3rd Dec 2016
President-elect Donald Trump told Philippines President Rodrigo Duterte that he is going about his controversial fight against drugs "the right way," Duterte said. Duterte says he was greatly pleased with the "rapport" he had with the newly elected U.S. president. Duterte made the comments to reporters in Davao City on Saturday after a brief phone call last night with President-elect Donald Trump. Government officials earlier passed along snippets of their conversation. "He was quite sensitive to our war on drugs and he wishes me well in my campaign and said that we are doing, as he so put it, 'the right way,' " the President said. Washington has been critical of the Philippines handling of drug dealers, including extrajudical killings -- government executions without the benefit of judicial proceedings. That has sparked Duterte's resentment. Duterte's verbal tirades and tilt away from Washington have raised many eyebrows since he took office in May. But Duterte was pleased over the exchange with Trump. He described Trump as "animated" and said they talked about "a lot of things." Duterte said he told Trump Filipinos "are tight with America" and wished Trump success. Both men extended travel invitations to the other. "He has invited me to visit New York and Washington DC. He said if I am around he wants to be notified of my presence. And I mentioned to him about the ASEAN Summit next year and he said he would try his best to be here. He wants to attend the summit and that would be great for our country. I could sense a good rapport." Trump's transition team passed along a comment about the call but didn't mention Duterte's war on drugs.
Duterte says felt rapport with Trump, assures U.S.-Philippines ties intact Reuters 3rd Dec 2016
Philippines leader Rodrigo Duterte described as "encouraging" his phone call with U.S. President-elect Donald Trump on Friday, during which he felt a rapport between them and gave assurance that ties were intact, despite a period of rocky relations. Trump's seven-minute chat with the firebrand Philippine president follows months of uncertainty about one of Washington's most important Asian alliances, stoked by Duterte's hostility towards President Barack Obama and repeated threats to sever decades-old defense ties. Duterte's anger was unleashed following Obama's concerns about possible human rights abuses in his war on drugs, during which more than 2,000 people have been killed. Duterte said Trump was "sensitive" and understanding about his crackdown and was encouraged by what he interpreted as Trump's indication he would not interfere. "I could sense a good rapport, an animated President-elect Trump. And he was wishing me success in my campaign against the drug problem," Duterte said in comments his office released on Saturday. His special adviser, Christopher Go, had earlier said in a text message to media that Trump had invited Duterte to visit the White House next year. There appeared to be confusion, however. A statement issued by Trump's transition team made no mention of that. It said the two men "noted the long history of friendship" between their countries and would work closely on "matters of shared interest and concern". Despite his optimism about Trump's win, it has not stopped Duterte railing against what he calls a U.S. history of "hypocrisy" and "bullying" worldwide. Republican Trump told Reuters during his campaign that Duterte's comments about Obama had showed "a lack of respect for our country." But he also stressed the "very important strategic location" of the Philippines. A source who has advised Trump's transition team on security policy said the president-elect would start a "clean slate" with Duterte.
Animated, engaging: Rody congratulates Trump Yahoo! News 2nd Dec 2016
After his frosty relations with US President Barack Obama, President Duterte appears ready for a fresh start with a new American chief executive. In a phone call last night arranged by the Department of Foreign Affairs, Duterte congratulated Donald Trump on his election as US president. Aides described the conversation as “animated and engaging.” No further details were provided by officials here about the call that was made from this city at 10:30 p.m. Duterte, who has unleashed profanities against Obama and insulted the former US ambassador to Manila, has said he can work with Trump. America’s new ambassador arrived in Manila the other night and said he expected the “deep and extraordinary warmth” between the two countries to endure. Presidential Communications Office assistant secretary Marie Banaag said Malacañang is hopeful of renewed relations with the US after the new ambassador arrived in Manila. Banaag said that Kim’s Asian background will give a boost to the long-time relationship between the Philippines and the US, which was affected recently by Duterte’s attacks against officials of the Obama administration.
Philippines President Duterte Phones Trump ABC News 2nd Dec 2016
Philippine President Rodrigo Duterte telephoned U.S. President-elect Donald Trump late Friday and had a brief but "very engaging, animated conversation" in which both leaders invited each other to visit his country. In a video released by Duterte's close aide, Bong Go, the Philippine leader is seen smiling while talking to Trump and saying: "We will maintain ... and enhance the bilateral ties between our two countries." It was not immediately clear if the touchy topic of Duterte's bloody crackdown against illegal drugs came up during the chat. Duterte has lashed out at outgoing President Barack Obama and the State Department for raising concerns over the crackdown, which has left more than 4,000 suspected drug dealers and users dead. Duterte, who took office in June, has been antagonistic to the U.S., his country's treaty ally, while reaching out to China and Russia. He has met Chinese President Xi Jinping twice and Russian leader Vladimir Putin once. During their talk, Trump invited Duterte to visit the White House next year and Duterte asked the U.S. president-elect to attend an East Asian summit to be hosted by the Philippines next year.
New US envoy to PH eager to strengthen enduring bonds Philippine Daily Inquirer 1st Dec 2016
United States ambassador-designate to Manila Sung Kim arrived late Thursday eager to start his “adventure” in the Philippines. Kim, who arrived past 10 p.m. on a Korean Airways flight from Incheon at the Ninoy Aquino International Airport, gave a brief speech on his arrival. “I’m finally here to be able to contribute to one of the most important partnerships, one of the most enduring partnerships,” the ambassador-designate said, referring to the ties between the US and the Philippines. He pointed out, “There are many important dimensions to the relationship between our two countries. But for me the most meaningful, the most fundamental is the deep bond and the extraordinary bond between the peoples in the two countries.” “I think there’s a great deal of respect, affection and admiration between Americans and Filipinos. This is clearly evident in the four million Filipino-Americans in the US and the 250,000 Americans living and working in the Philippines,” Kim noted. He said, “I look forward to joining them to deepen the bond between the two peoples and of course I very much look forward to working with the Philippine government to strengthen this very important partnership between our two countries.” Kim added that he was eager to get started and said that the staff at the US embassy in Manila has prepared a busy schedule for him. “I am starting with my adventure first thing in the morning,” he pointed out. The ambassador-designate concluded, “I am very confident that our relationship will continue to grow in the years to come. Thank you very much. Maraming salamat.” SFM
Duterte: PH not ready for military alliances with Russia, China Philippine Daily Inquirer 1st Dec 2016
The Philippines is “not ready” for a military alliances with Russia and China but is willing to cooperate with its emerging allies, President Rodrigo Duterte has said. “I’m not ready for military alliances because we have a treaty signed in the ’50s,” Duterte said in an interview with Russian television RT this week. Duterte was referring to the Mutual Defense Treaty (MDT) between the United States (US) and Philippines signed on August 30, 1951. The President said he was ready to cooperate with his “new friends” China and Russia “to make this world more peaceful.” “I just want to be friends, to show to the world that I am not limited to a few countries, that I have to interact with the rest of the world, because we are a sovereign state,” he said. In an interview last Tuesday, Russian Ambassador Igor Khovaev said Moscow was not seeking a military alliance with the Philippines, but is looking at intensifying its “partnership” and “friendship” with Manila. Khovaev said Russia did not have any military alliances in the Asia-Pacific region and intended to keep it that way. Duterte has repeatedly assailed the US for intervening in the country’s domestic affairs particularly on his brutal crackdown on illegal drugs. The chief executive had earlier said that he could turn to Russia to supply the country’s firearms deal after a US senator threatened to stop the sale of 26,000 assault rifles to the Philippines.
President Duterte’s Backtracking Prompts Hope for Compromise Asia Maritime Transparency Initiative - CSIS 1st Dec 2016
In recent months, Philippine president Rodrigo Duterte has repeatedly threatened separation from the Philippines’ only strategic ally, the United States. U.S.-Philippine joint patrols in the South China Sea and joint military training exercises have both been threatened with termination as Duterte brings the Philippines’ foreign policy into line with his vision of “independence.” He has also threatened to review and possibly abrogate the 2014 Enhanced Defense Cooperation Agreement (EDCA), which provides U.S. forces access to five Philippine military bases. Security analysts have questioned whether U.S.-Philippine defense cooperation can survive six years of a Philippine president seemingly driven by anti-Western ideology. Those fears should be somewhat allayed, as Duterte has walked back some of his earlier pronouncements and Defense Secretary Delfin Lorenzana has declared that the Philippine-U.S. security alliance will not be abrogated and that the EDCA will stay in place. What is seen is that anti-Americanism in the Duterte administration is strongest at the top level but does not permeate the bureaucracy—especially the Department of National Defense and the Armed Forces of the Philippines. Although this means a likely return to the lower levels of cooperation seen under the administration of Aquino’s predecessor, Gloria Macapagal Arroyo, they will ensure the survival of the U.S.-Philippine alliance.
Russia eyeing ‘partnership,’ not military alliance, with PH Philippine Daily Inquirer 30th Nov 2016
Russia is not seeking a military alliance with the Philippines, but is looking at intensifying its “partnership” and “friendship” with Manila, its ambassador said on Tuesday. Ambassador Igor Khovaev stressed that Moscow did not have any military alliances in the Asia-Pacific region and intended to keep it that way, despite warming ties between the two nations. “If some countries create close military alliances, it means that they want to ensure their security to some extent in expense of other members of the international community,” he told a news conference. “It’s not the way for us,” the envoy added, noting that Russia was in favor of a “new architecture of equal security for all regions and nations.” He refused to comment on the Philippines’ other military alliances. But he said that “no other country should interfere with the relationship between the Philippines and Russia.” Khovaev emphasized that their present ties with China, Vietnam and India were based on a model of “strategic partnership,” not a military commitment. Since taking power in June, President Duterte has had an uneasy relationship with the United States. He has declared intentions to bolster relations with China and Russia as he revamps Philippine foreign policy that has long leaned on Washington. He has talked about a “new world order” led by the two regional behemoths, and has openly talked about his admiration for Russian leader Vladimir Putin, calling him his “favorite hero.”
PH, Malaysia agree to strengthen BIMP-EAGA initiatives on connectivity Manila Bulletin Business 28th Nov 2016
The Philippines and Malaysia have agreed to strengthen the BIMP-EAGA (Brunei-Indonesia-Malaysia-Philippines-East Asia Growth Area) by undertaking initiatives that would promote connectivity among the four countries. Primarily aimed at stimulating growth and foster inclusive development in the region, BIMP-EAGA was formed in 1994 by the Governments of Brunei Darussalam, Indonesia, Malaysia, and the Philippines. As part of the recent Presidential visit in Malaysia, Department of Trade and Industry (DTI) Secretary Ramon M. Lopez met with key business leaders and government officials in Malaysia to strengthen trade ties between the two countries, with emphasis on the opportunities and initiatives for the BIMP-EAGA. “This is a great opportunity to learn first-hand from businesses how our governments can further support those looking to export and how to continue to attract investment from Malaysia to the Philippines,” Lopez said. Lopez also mentioned that increased collaboration in tourism, halal industry, and Islamic banking are being eyed by the two countries as key areas of cooperation. With the increasing halal market worldwide, with an estimated $2 to 3 trillion global halal market, the Philippines eyes heightened cooperation with Malaysia in increasing trade activities in the region for the said industry. DTI, as the lead agency of the newly-formed Philippine Halal Board, with its Export Marketing Bureau, plans to increase the awareness of the availability, quality, and integrity of the halal products in the Philippines.
China, Russia embrace set as PH creates trade focus teams Philippine Daily Inquirer 22nd Nov 2016
The Philippines is moving to bolster its pivot to China and Russia with the creation of joint economic commissions (JECs), aimed at strengthening bilateral trade and investment ties in key areas particularly the agriculture, energy and infrastructure sectors. In a text message to reporters late Sunday, Trade Secretary Ramon M. Lopez said the developments emerged during bilateral meetings held on the sidelines of the recently concluded Asia-Pacific Economic Cooperation (Apec) Leaders’ Meeting held in Peru. In particular, the meeting between President Duterte and Russian President Vladimir Putin saw the two leaders agreeing to set up a joint economic commission to work on the details of prospective cooperation and other initiatives, Lopez said. The different areas where the Philippines and Russia are open to boosting trade and investments are in energy, machine engineering, hardware, energy equipment, modernizing and retrofitting machines, port infrastructure, monorail system, and agriculture. In the agriculture sector alone, Lopez disclosed earlier Russia had already committed to buying $2.5 billion worth of fruits, grains and vegetables from the Philippines in the next 12 months. The two countries were also looking at creating frameworks for cooperation in tourism, education, financing and market access. They will also both exchange ideas on law enforcement and counter-terrorism, Lopez said. He said Mr. Duterte and Chinese President Xi Jinping also threshed out what was taken up during the Philippine leader’s state visit to China last month.
Russia commits $2.5 B imports from Philippines philstar.com 22nd Nov 2016
Russia has committed to significantly boost its imports from the Philippines to about $2.5 billion following bilateral talks on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Leaders Meeting here. Trade Secretary Ramon Lopez said the first meeting between President Duterte and his Russian counterpart Vladimir Putin in this Peruvian capital turned out “good” as both sides agreed to strengthen bilateral ties. Lopez said Russia has offered the Philippines potential trade and investment partnerships in the fields of energy, machine engineering, energy equipment, railway, monorail and port infrastructure. Russia has likewise agreed to import $2.5 billion worth of the country’s agricultural products, the Trade chief said. Russia currently buys agricultural products and beer from the Philippines worth only around $46 million a year. “We can only look up, I mean, nowhere to go but up because it’s really a relationship that offers a lot of opportunities because before, almost nothing happens when it comes to trade and investment with Russia,” he added. Lopez said cooperation in the areas of training and supplies for law enforcement, counterterrorism, anti-narcotics, national emergency, education, finance and market access were also forged.
PH shelves TPP membership, eyes China-led RCEP Rappler 21st Nov 2016
With the United States becoming more protectionist under a Donald Trump presidency and given the Philippine president's foreign policy pivot towards regional integration, the Philippines is likely to shelve plans to join the US-led Trans-Pacific Partnership (TPP) and shift focus to the China-led Regional Comprehensive Economic Partnership (RCEP). "I personally would like to look at RCEP more closely because that's the 10 ASEAN (Association of Southeast Asian Nations) countries. That one, we are more open to," Finance Secretary Carlos Dominguez III said weeks before the likelihood of Trump upending Washington's trade commitments with its allies in the Asia-Pacific. "With regard to TPP, that's being reviewed all over, including in the US (United States). So maybe we'll put that in the back burner," Dominguez added. On Tuesday, November 22, Trump said he would move to pull out of the TPP on his first day in office. While the RCEP and TPP are often depicted as rival trading blocs, both are said to have significant income benefits. The RCEP includes the ASEAN-10, in addition to China, India, Japan, Korea, Australia, and New Zealand – the countries with which the ASEAN already has free trade agreements. As the world's first pan-Asia free trade deal, the RCEP boasts a list of impressive statistics, like covering almost 30% of global gross domestic product (GDP) and roughly half of the world's population. But its scope is more limited than that of the TPP. The TPP would create the world's largest free trade area comprising 40% of the global economy. The TPP includes 12 participants: the US, Australia, Canada, Japan, Chile, Mexico, Peru, and New Zealand plus 4 ASEAN members—Singapore, Malaysia, Vietnam, and Brunei.
Rody vows friendship with Trump, sees fairness with TNTs philstar.com 17th Nov 2016
President Duterte is optimistic that US president-elect Donald Trump will be fair in dealing with illegal immigrants, especially Filipinos. “I trust in his judgment and that he would be fair on the matter of the placement of illegal immigrants,” Duterte said over dinner the other night with reporters at Malacañang. There are reportedly more than 270,000 Filipino illegal immigrants in the US. At the same dinner meeting, Duterte also expressed confidence that he could get along well with Trump, from whom he doesn’t expect to get criticism for alleged human rights violations. Duterte had lambasted outgoing US President Barack Obama after the latter called his attention to human rights abuses in the conduct of his war on illegal drugs. The President said he felt insulted by Obama’s admonition. “We do not have any quarrel,” Duterte said, referring to Trump. “I can always be a friend of anybody especially presidents, chief executive of another country. He does not call me out over my campaign about human rights,” he added. Duterte had said he did not want to pick a fight with the next US president who, like the Philippine leader, is known for his tough talk. “Congratulations. It was a well-deserved victory. You (Trump) are the chosen leader of the most powerful country,” Duterte said when asked to comment on Trump’s election victory.
PH makes big push for BIMP-EAGA | Malaya Business Insight 14th Nov 2016
As the Philippines takes over chairmanship of the Brunei-Indonesia-Malaysia-Philippines East Asean Growth Area (BIMP-EAGA) this year, government is making a big push towards its full rollout, with Mindanao as a launching pad. Ramon Lopez, secretary of the Department of Trade and Industry, said in a briefing following President Duterte’s visit to Malaysia there is now a renewed consciousness to revive the BIMP, short of admitting the Philippines has not taken advantage of its benefits. The Philippines is now playing catch up on, Lopez said, “an effort to revive what has been there all along.” “We are now adding more support to it, we are encouraging more flights, more sea trade, sea transport, movement of people on those ports that are near Mindanao like those in Brunei, Indonesia and Malaysia,” said Lopez. Datu Abul Khayr Alonto, chairman of the Mindanao Development Authority, in the same briefing said now is the time to pick up the pace for the development of Mindanao and the BIMP-EAGA areas. For one, Alonto said, the government is working on a high-speed railway system for Mindanao; beefing up power by an additional 2,000 megawatts from a mix of coal, gas and diesel; and expanding the economic zones to include agro-industrial economic zone.
Exporters see China taking up slack from TPP BusinessWorld 14th Nov 2016
The uncertainty presented by a Trump presidency may require a shift by the Philippines if it intends to grow its foreign trade, siding China because the Trans-Pacific Partnership (TPP) could be dead in the water, the head of the exporters’ association said. Sergio R. Ortiz-Luis, Jr., president of Philippine Exporters Confederation, Inc., said that the country is now better off aligning with Chinese initiatives like the Asian Infrastructure Investment Bank (AIIB) and the One Belt, One Road development project, noting how such a move use cost-effective for the Philippines. China is reviving trade relationships along the historic Silk Road, connecting Central Asia, the Middle East and Europe through two trade corridors -- one overland and another by sea. On the other hand, the Philippines is currently seeking to ratify its status as a founding member of the AIIB -- a Beijing-backed lender -- before the year ends. It has prepared certain projects which it would present to AIIB after ratification. Approximately P4 billion is provided for in the 2017 national budget to be paid as a part of the Philippines’ capital contributions to the AIIB.
Duterte and Trump: Birds of the same feather philstar.com 13th Nov 2016
Call it what you like – luck, clairvoyance, foresight – whatever you call it, President Rodrigo Duterte’s anger toward Barack Obama and human rights critics, plus his pronouncements of renewing stronger ties with China and Russia and being less dependent on the United States, will now begin to pay off. During the campaign, US president-elect Donald Trump did not mince words when he said he will send illegal immigrants home – which tells us he will most likely countervail the executive actions of Obama which protects illegal aliens who have been in the US since 2010 from deportation. Trump had also promised to be relentless against criminals and terrorists with less emphasis on human rights, threatening to “take out their families” and “knock the hell out of ISIS.” That is perhaps an indication why President Rodrigo Duterte feels that he can get along well with the incoming US president whom he said he shares similarities with. Like Duterte, Trump does not care much about being “politically correct” in his comments. So now, we have the perfect opportunity to do a “reboot” as far as our relationship with the United States is concerned and bring it to a new level, where we can have close ties but this time in a different atmosphere. Trump’s pronouncements of having countries doing their part in securing themselves surely falls right within the alley of President Rody’s thinking.
Duterte Outbursts Start Scaring U.S. Companies, Industry Says Bloomberg.com 13th Nov 2016
Signs of investor discontent with Rodrigo Duterte’s outbursts against the U.S. are multiplying with American companies starting to hold off investing in the Philippines, the nation’s electronics and semiconductor industry said. “The concern is that we have lost momentum," Dan Lachica, head of the Semiconductor and Electronics Industries in the Philippines, Inc., said in an interview Friday. “Investments have been held and orders have been canceled. Hopefully, it doesn’t get to the point that they shut down.” After initially causing declines in the stock and currency markets, Duterte’s repeated attacks against the U.S. since September may be finally taking their toll on direct investment. The concerns of SEIPI, the largest organization of foreign and local electronics companies, mirror those raised by the American Chamber of Commerce, which has warned the president is creating unease. Finance Secretary Carlos Dominguez said no American company is leaving the country and he assured top U.S. business executives in a meeting this month that economic relations between the Philippines and the U.S. will remain intact despite Duterte’s rhetoric, Manila Bulletin reported last week.
National Affairs
Palace: Duterte, Robredo have 'irreconcilable differences' Rappler 5th Dec 2016
Malacañang officials said "irreconcilable differences" led to President Rodrigo Duterte's order for Vice President Leni Robredo to stop attending Cabinet meetings. That order was the "last straw" for Robredo, who announced she is set to resign as chairperson of the Housing and Urban Development Coordinating Council (HUDCC), leaving the Duterte Cabinet. Cabinet Secretary Leoncio "Jun" Evasco Jr, who had relayed Duterte's order to Robredo only through text message, told Rappler on Sunday, December 4, that having the Vice President attend Cabinet meetings would be pointless. "There is no point for her to attend Cabinet meetings if her position is always contradictory to the President's," Evasco said. Communications Secretary Martin Andanar, in a statement released Sunday, also said: "As a Cabinet member, the Vice President is expected to be a team player where differences in policies and issues are discussed during Cabinet meetings. The President in turn respects any decision agreed upon by his Cabinet. Recent events, however, showed the differences between the President and the Vice President as becoming irreconcilable and public." The working relationship between Duterte and Robredo has been shaky from the start. Duterte said he was initially not keen on appointing Robredo to the Cabinet because it might hurt the feelings of Robredo's election rival, defeated vice presidential candidate Ferdinand Marcos Jr. He later appointed her as his housing czar.
Cabinet dissenters free to quit—Palace The Standard 5th Dec 2016
Cabinet Secretary Leoncio Evasco scored Vice President Leni Robredo for publicly opposing President Rodrigo Duterte’s policies when she was still a member of his Cabinet. “It is vital for the Cabinet to be united,” Evasco said. “It is important that while one is a member of the Cabinet, one should express one’s views discreetly and not be adversarial publicly.” “According to the President, it is our duty to defend the dignity and integrity of the Filipino people. If Cabinet members cannot agree with the President’s policy, they are free to resign,” he added. Robredo opposed several of Duterte’s policies, including his bloody war on drugs, the lowering of the age of criminal liability, the revival of the death penalty, his disrespectful treatment of women, foreign policy, and the burial of the late President Ferdinand Marcos in the Libingan ng mga Bayani. Evasco said joining the Cabinet entailed an implicit agreement with the President’s program, platform and policies. “Cabinet members are personally appointed by the President; and it is also his prerogative to withdraw the same for reasons known only to him,” he said.
Leni leaves Cabinet philstar.com 5th Dec 2016
Told by Malacañang to stop attending Cabinet meetings, Vice President Leni Robredo last night declared she would quit her post as President Duterte’s housing chief effective today. In a statement yesterday, the Vice President said she had been warned about a plot to “steal” her mandate. She is expected to address the nation this afternoon. Robredo said she decided to quit after receiving a text message from Cabinet Secretary Leoncio Evasco Jr. on Saturday, telling her to stop attending Cabinet meetings. Malacañang said the order did not mean she had been fired from the Cabinet. “We received a text message last Saturday from Secretary Evasco, relaying the President’s instruction through (Presidential Management Staff head Christopher) Bong Go for me to desist from attending all Cabinet meetings starting this Monday, Dec. 5,” she said in a statement. “This is the last straw, because it makes it impossible for me to perform my duties,” she said. Robredo is facing an election protest before the Supreme Court filed by former senator Ferdinand Marcos Jr., whom she defeated by a slim margin of more than 200,000 votes. Duterte had initially said he did not intend to give Robredo any post in his Cabinet. But after their first meeting, he changed his mind and gave her the same post held by Jejomar Binay when he was vice president. In his visit to China last October, Duterte had introduced Marcos as the new vice president if he won his case against Robredo. Robredo did not give details of the supposed plot to snatch the vice presidency from her, but she mentioned “obstacles” that made her job as housing chief difficult. Robredo has been critical of the administration, particularly on the issues of extrajudicial killings and the burial of the late strongman Ferdinand Marcos at the Libingan ng mga Bayani. Robredo, however, vowed to continue supporting the “positive initiatives” of the administration even after resigning from Duterte’s cabinet.
Duterte: No plans to declare martial law CNN Philippines 2nd Dec 2016
In the wake of recent talks about the possibility of another martial law, President Rodrigo Duterte settled the matter on Thursday by saying that placing the country under military rule was far from his mind. Duterte said he found no reason nor relevance for it. "Kalokohan 'yan. Nag-martial law man tayo noon, anong nangyari? Gumaling ba ang buhay natin hanggang ngayon? Wala," he said speaking at the Third ARMM Local Government Summit in Davao City. [Translation: That's nonsense. We had martial law before, what happened? Did it improve our lives now? Not at all.] The President said martial law was not the answer to the growth of extremism in the south. He also said killing all religious extremists, like the Maute Group, would lead to nowhere. Talks about another martial cropped up after Duterte had floated the idea of suspending the privilege of the writ of habeas corpus. And two days ago, an ambush on a presidential advance-party convoy which some have said to have been staged by the government — reminiscent of the events before the 1972 martial law declaration. But instead of martial rule, Duterte told local officials that he'd rather give them blanket authority to issue necessary orders. Duterte also repeated that federalism would be the real solution to the conflicts in Mindanao — saying he would gladly step down should this form of government be installed in the country.
Duterte: Federalism the only way to settle Moro rebellion Philippine Daily Inquirer 1st Dec 2016
President Rodrigo Duterte reiterated on Thursday, that a federal form of government would be the only way to address the Moro problem in Mindanao. “We are suffering because there seems to be no cohesive actions on the part of the Moro people and the central government,” Mr. Duterte told at least 116 mayors and governors who attended the local government summit of the Autonomous Region in Muslim Mindanao here. Mr. Duterte said so many attempts have been made to bring peace and unity among the Bangsamoro people, “but these efforts failed.” He said with all the meetings and talks, “instead of uniting, it was more of divisive measures.” “But I think the only acceptable arrangement today, of this generation and of the lives of the Moro people, is federalism. Other than that, bakbakan ito (it will be fighting),” he said. The summit participants also signed on Thursday, a manifesto expressing support to the government’s war on drugs. They also denounced terrorism.
Before his now-infamous US rants, Duterte hated ‘imperial Manila’ first BusinessMirror 1st Dec 2016
Decades before President Duterte began ranting about US imperialism, he routinely blasted another conquering power closer to home: Manila. Duterte’s disdain for entrenched elites can be traced to his upbringing in Davao, the biggest city on the southern island of Mindanao, where insurgents have fought for more than 100 years against outside dominance by the Spanish, Americans, Japanese or governments in Manila. He felt that leaders in the faraway capital never did enough to atone for past atrocities and help develop Mindanao, home to 11 of the country’s 20 poorest provinces. “Years of Mindanao’s neglect is in Duterte’s consciousness,” Danilo Dayanghirang, a Davao City councilor who has known the President for three decades, said in an interview last month. “People in Manila have a low regard for people in Mindanao, because their drivers and maids are from here. You can see the discrimination, and Duterte hates that.” That sense of injustice, impressed on his psyche after decades of public life in Davao, now threatens to upend US strategy in Asia. Since taking office at the end of June, Duterte has spooked markets with repeated outbursts aimed at the US—everything from scrapping joint patrols in the South China Sea to insulting US President Barack Obama.
Senate starts Cha-cha hearings next week philstar.com 1st Dec 2016
The Senate will start tackling Charter change next week, including President Duterte’s intent to change the form of government from presidential to federal. Senate President Pro Tempore Franklin Drilon, chairman of the committee on constitutional amendments and revisions of codes, said the panel has set its first hearing on bills and resolutions on the issue on Dec. 8. For the past few weeks, the chamber has been busy deliberating on the proposed P3.35-trillion national budget and with inquiries on other controversial issues. “This committee understands the importance of this undertaking in the agenda of the current administration, so we will ensure that it is given the utmost priority,” Drilon said. “We will hear all views and opinions of the various sectors on these issues.” Drilon said the panel has invited resource persons from various sectors, including the business community, labor, academe, civil society, sectoral and religious groups, as well as respected constitutional and legal experts and former Supreme Court justices. The panel will also invite some members of the Cabinet, including Executive Secretary Salvador Medialdea and Makati Business Club chairman Ramon del Rosario Jr. Drilon vowed anew to make the process of amending and revising the Constitution “thorough, consultative and transparent.” He said the initial hearing would focus on key issues, like whether or not there is a need to amend the Constitution and which parts need amendments. Drilon added the panel would also tackle whether the amendments should be proposed by a constitutional convention or with Congress acting as a constituent assembly.
Congress delivers 2017 budget before Christmas as promised BusinessMirror 28th Nov 2016
Congress on Monday approved the Palace-proposed P3.35-trillion national budget after the Senate approved its own version of the annual money measure, paving the way for bicameral talks with the House of Representatives to hammer out a reconciled 2017 budget for final approval before lawmakers adjourn for Christmas beginning December 16. “Yes, we completed the budget bill on schedule,” Senate President Aquilino L. Pimentel III said. The Senate Majority Leader earlier vowed to the BusinessMirror the senators were set to pass the budget bill in one sitting on Monday.Sen. Vicente C. Sotto III added that lawmakers committed to approve the final version of the budget before the yearend adjournment. “Definitely, we will pass the budget before Congress goes on recess,” Sotto added. This developed as Senate Minority Leader Ralph G. Recto pushed for a minimum 10-percent cut in the bureaucracy’s mobile phone, electricity, travel, gasoline, advertising and other nonessential expenses, which, Recto estimates, would “free billions for health and other social services” in the 2017 national budget.
‘Endo’ middle ground must be reached–government Business Mirror 28th Nov 2016
The government is intensifying its efforts to convince all stakeholders to accept the proposed “middle ground” in stopping illegal hiring practices, highlighting that ending all forms of contractualization will drive away investors and lead to the displacement of at least 100,000 employees. Labor Secretary Silvestre H. Bello III reiterated his appeal made in the three Labor Summits in Luzon, the Visayas and Mindanao in the past two months for the supposed middle ground, reminding labor groups to recognize the importance of legitimate forms of contracting to help employers sustain the profitability of their businesses. “While the department [of Labor and employment] is keen on curbing illegitimate contractualization, or endo, practices as directed by the President, we recognize that there are legitimate forms of contracting and, thus, may be allowed particularly in seasonal and project employment,” Bello said in a statement. He added that endo practices, or the illegal schemes used by employers to skirt the constitutional right of workers to security of tenure, are different from legitimate contractual arrangements, which businesses use to save on costs and make their businesses sustainable. However, Bello’s new appeal for labor groups and employers to reach a “middle ground” is seen by workers as a full turn-around from President Duterte’s campaign promise to stop contractualization. But Trade Secretary Ramon M. Lopez continues to bat for the continuation of legal contractualization, resisting the move of militant labor groups for a blanket end to contractual work.
3rd term for BSP’s Tetangco Philippine Daily Inquirer 22nd Nov 2016
Governor Amando Tetangco Jr. of the Bangko Sentral ng Pilipinas may serve for an unprecedented third term at the helm of the country’s monetary authority—and not even the law limiting central bank appointees to two terms will be a hindrance, if President Duterte has his way. Tetangco ends his second six-year term as BSP chief in July 2017 and the jockeying for his position among would-be aspirants has begun, but the Inquirer learned Monday that no less than Mr. Duterte himself had given the green light for the effort to retain the internationally respected central bank governor. “President Duterte has authorized [Finance] Secretary [Carlos] Dominguez to ask Tetangco to stay for another full term,” a ranking Cabinet official said in a telephone call from Lima, Peru. “The President is convinced that Tetangco is the best man for the job.” However, the New Central Bank Act of 1993 says that members of the BSP’s policymaking Monetary Board—which is chaired by the governor—can only be reappointed once. Tetangco was first named governor by then President Arroyo in 2005 and reappointed by President Aquino in 2011. “That won’t be a problem,” the Cabinet official assured, explaining that congressional leaders have already been informed of the President’s wish to reappoint Tetangco and that lawmakers have agreed to amend the law in time to allow this to happen. It remains to be seen, however, if Tetangco will accept the President’s offer. The central bank chief, who turned 64 last week, had already indicated plans to retire from public service as early as last year, citing health concerns (having had heart surgery several years ago) and wanting to spend more time with his family.
Rody: Philippines open for business philstar.com 18th Nov 2016
President Duterte left yesterday for Lima, Peru to attend the 24th Asia-Pacific Economic Cooperation (APEC) Summit. “My message to APEC will be clear: the Philippines is open for business. We will do everything to make sure that businesses – particularly our MSMEs (micro, small and medium enterprises) – will thrive and flourish,” Duterte said in his departure speech at the Davao International Airport. The President is stopping briefly in Auckland, New Zealand before proceeding to Lima. “As we look to expand our horizons and pursue an independent foreign policy, the Philippines and Filipino businesses must be ready to further deepen and broaden our engagement with South America – especially those that straddle the Pacific – as economic partners,” he added. He said addressing corruption and criminality would greatly help the country achieve sustainable and inclusive growth. Duterte will meet tomorrow with Chinese President Xi Jinping and Russian President Vladimir Putin on the sidelines of the APEC meet. Earlier at a dinner with reporters, Duterte said he won’t ask for anything from the Russian ruler except friendship. “I want to be friends with him. I just want the two countries to be the best of friends. This is an economic world. If there are things we can sell or export to them, the better,” Duterte said.
Not a fan of Martial Law, Duterte calls it a contingency philstar.com 16th Nov 2016
President Rodrigo Duterte said on Tuesday he is no fan of Martial Law even as he maintained that such declaration can be a "contingency" to address violence. Duterte allayed fears that his recent statement on the possible suspension of the writ of habeas corpus could be a prelude to martial rule similar to that of the late dictator Ferdinand Marcos. "I am not a fan of Martial Law. I am a lawyer. People are afraid of Martial Law but if ever, Martial Law is a contingency to meet widespread violence," the president told reporters at the Presidential Security Group compound Tuesday night. Under the 1987 Constitution, the president may suspend the writ "for not more than 60 days in case of an invasion, rebellion" or "when the public safety requires it." Last week, Duterte said he might suspend the writ of habeas corpus if lawlessness spread in Mindanao, adding that the move could intensify the crackdown on drugs and rebellion. Duterte clarified though that he would not declare Martial Law and that he would only suspend the writ if criminals "force" his hand into it. Officials sought to downplay Duterte's pronouncement by saying that the president was just articulating an idea and a hyperbole. Some lawmakers, however, have raised concerns over the president's statement, noting that Marcos suspended the writ before declaring Martial Law.
Summary: Where SC justice applicants stand on issues philstar.com 16th Nov 2016
The Judicial Bar Council (JBC) on Wednesday quizzed seven candidates vying to replace the retiring Supreme Court (SC) Associate Justice Jose Perez. The seven potential magistrates are as follows: Persida Rueda-Acosta, Rita Linda Ventura-Jimeno, Rowena Apao-Adlawan, Jafar Dimaampao, Samuel Martires, Ricardo Paras III (also a candidate for the Sandiganbayan), and Noel Tijam. The applicants faced JBC executive committee Chair Angelina Sandoval-Gutierrez, regular members Maria Milagros Fernan-Cayosa, Jose Mejia and Toribio Ilao. They were asked about their backgrounds, intention for applying and stance on various issues.
Rights group frowns on Duterte plan to suspend writ of habeas corpus philstar.com 14th Nov 2016
Human rights group Karapatan has frowned over President Rodrigo Duterte's plan to suspend the privilege of the writ of habeas corpus. Duterte is treading on dangerous ground with his plan, said Karapatan Secretary General Cristina Palabay. Palabay warned that suspending the writ could be conveniently used by the military and police as justification for more abuses. “As it is, the (government) is already violating its own unilateral ceasefire declaration with the National Democratic Front of the Philippines by continuing the implementation of Aquino’s counter-insurgency program Oplan Bayanihan,” she said. “Suspension of the writ of habeas corpus opens the door for more indiscriminate and blatant human rights abuses by state security forces including paramilitary units.” Karapatan maintained that there is no legal ground for the suspension since Article 3 Section 15 of the 1987 Constitution specifies that the “privilege of the writ of habeas corpus shall not be suspended except in cases of invasion or rebellion when the public safety requires it.” Karapatan has monitored that there were 20 victims of political killings, 20 of frustrated killings, and 27 of illegal arrest and detention, among others, perpetrated by the Armed Forces and paramilitary groups in the first four months of the Duterte administration, from July to October this year. Palabay added that at least 15 political prisoners were arrested and are still detained based on trumped up criminal charges.
No basis yet for bilateral ceasefire – NDF philstar.com 13th Nov 2016
The National Democratic Front (NDF) said yesterday there was “no basis yet for bilateral ceasefire” with the government, contrary to recent declarations by the government peace panel. A statement issued by the NDF quoted its peace panel member Benito Tiamzon as saying the government had “not provided us with real incentives to work for a more stable ceasefire agreement.” Tiamzon belied the claims of government peace panel chair and Labor Secretary Silvestre Bello III as stated in reports that talks between the two parties were ongoing to forge a bilateral ceasefire agreement by the end of this month or early December. “Such news reports have come out persistently this week despite a denial issued by NDF (Philippines) peace panel chair Fidel Agcaoili in an interview by a regional online daily last Monday. In that interview, Agcaoili complained that the (government) had not even informed the NDFP of any bilateral ceasefire talks, whether ‘through formal writing or even a phone call.’ The (government) seems to be negotiating with itself,” Tiamzon said. “Unilateral ceasefires have been in place since the first round of the peace talks ended in the last week of August, with both parties agreeing to sign a ‘single unified bilateral ceasefire agreement’ in (60) days, or by Oct. 26,” the statement said. It noted that “the date passed, however, with no bilateral ceasefire agreement worked out” and the “unilateral ceasefires remain valid in the absence of a notice of termination by either side.” But Tiamzon noted the “continuing military operations and numerous violations committed by (government) forces, particularly its military, police and paramilitary forces, are making the situation on the ground untenable and endangering even the fragile unilateral ceasefires currently in place.”
Customs
Ministers call for phase-down of non-tariff trade barriers Manila Bulletin Business 20th Nov 2016
Trade ministers from the 21-member APEC economies have pushed for a deliberate effort to phase down non-tariff barriers (NTBs) as trade among the world’s largest regional trade grouping has not recovered since the global financial crisis. Trade and Industry Secretary Ramon Lopez, who attended the APEC Ministerial Meeting here, noted that non-tariff barriers affect the micro, small and medium enterprises (MSMEs) the most. “There must be program to measure and phase down NTBs,” Lopez said. These NTBs affect most the MSMEs. Lopez said the challenges are on services restrictions and agriculture tariffs to further open up economies and facilitate trade. For the Philippines, the most favored nation (MFN) tariff rate is equal to 6.3 percent while agriculture products are higher at 9.9 percent. Lopez noted that trade and investment flows by APEC economies have expanded since the 1990s, but slowed down since global financial crisis. The Bogor goals, which set for free and open trade and investments, are the cornerstone of work in APEC.
Who is Customs deputy commissioner Art Lachica? Rappler 19th Nov 2016
Bureau of Customs’ (BOC) Deputy Commissioner Arturo “Art” Lachica was killed in an ambush on Thursday evening, November 17, along España Boulevard while on his way home from a conference in Manila.
BOC deputy commissioner Lachica dies in ambush PortCalls Asia 17th Nov 2016
Philippine Customs Deputy Commissioner Art Lachica was ambushed on España Boulevard in Manila tonight. He sustained gun shot wounds and was rushed to nearby United Doctors Medical Center where he was declared dead on arrival. Lachica was in charge of the Bureau of Customs’ Internal Administration Group. The official was with his driver and bodyguard inside a black sedan when a motorcycle-riding man shot them around 6:50 p.m., according to Supt. Aquino Olivar, head of the Sampaloc police station. The driver and bodyguard survived the ambush. According to a television report, an unidentified assailant shot Lachica while he was in his car waiting for the light to turn green at the corner of España Boulevard and Kundiman street in Manila. Lachica was headed home from a conference at the BOC headquarters in Port Area, Manila. Lachica was a holdover official from the previous administration, having been first appointed to this post under the term of former Customs commissioner John Sevilla in 2014. Prior to his appointment, he was Deputy Executive Director of the Career Executive Service Board. He was a lawyer and Certified Public Accountant by profession. Prior to his CESB appointment, he spent six years at the Civil Service Commission where he rose from the ranks and became Regional Director for the Autonomous Region in Muslim Mindanao and taught law at the Notre Dame University College of Law in Cotabato City.
BOC issues draft rule on duty drawback, refund implementation PortCalls Asia 15th Nov 2016
The draft customs administrative order (CAO) to implement Philippine provisions on duty drawback, refund and abatement, and return of sash deposits held in trust has been released by the Department of Finance (DOF) and Bureau of Customs (BOC). The eighth draft CAO related to Republic Act No. 10863 or the Customs Modernization and Tariff Act (CMTA) to be released for public hearing implements Sections 900 to 902, Chapter 1; Section 903 to 913, Chapter 2, Title IX; and other related sections of. It covers duty drawback including refund of internal revenue taxes; refund for overpayment, abatement of duties and taxes; and other refunds arising from final decisions in protest cases, judicial decisions, special laws, and executive/presidential issuances. Position papers on the draft CAO will be accepted until November 17, the same date of the public consultation for the proposed order.
DOF to implement lifestyle checks on Customs officials Rappler 14th Nov 2016
The Department of Finance (DOF) will enact stricter measures, including checking the bank accounts of executives at the Bureau of Customs (BOC), in order to curb corruption at the BOC. Finance Secretary Carlos Dominguez III ordered lifestyle checks and a forensic analysis of data, including the possible opening of bank accounts linked to corrupt activities, a DOF statement said on November 14. “We have to be smart about catching corrupt people. You cannot always catch them like, you know, playing cops and robbers. We have to catch them by …checking their lifestyle, checking their bank accounts, checking how many cars they own,” Dominguez said. The government agency has previously said that relaxing the country’s bank secrecy law would be an effective way to flush out corrupt government officials as well as tax dodgers. As part of its ongoing campaign for tax reform, the DOF has also asked the Congress to pass new legislation that will relax bank secrecy laws for tax fraud cases and include tax evasion as a predicate crime for money laundering. As an opening salvo, the BOC recently ordered the relief of Deputy Commissioner Arnel Alcaraz as officer-in-charge of its Enforcement Group, after President Duterte said he wants a certain Customs official suspended and removed from office for alleged corruption.
First container freight station at Subic port inaugurated PortCalls Asia 12th Nov 2016
More ships are expected to call at the Port of Subic with the opening of its first container freight station (CFS) to cater to the Central Luzon market, according to the Subic Bay Metropolitan Authority (SBMA). Port operator Subic Bay International Terminal Corporation (SBITC), in partnership with SBMA and Bureau of Customs Subic (BOC-Subic), recently inaugurated the newly built CFS located at SBITC’s New Container Terminal (NCT) 2 at the Port of Subic.
Customs tops target for first time this year BusinessWorld 3rd Dec 2016
The Bureau of Customs, which contributes nearly a fifth to total state tax revenues, exceeded its monthly collection target for November -- the first time it has done so this year. The bureau said in a statement on Friday that preliminary data showed it collected P40.239 billion in November, surpassing by a little more than a 10th a P36.45-billion target set for that month. November’s collection was also 38% more than the P29.061 collected in last year’s comparable month, marking the biggest annual improvement at least for this year. The bureau’s Financial Service particularly noted that, out of the 17 ports nationwide, the Manila International Container Port exceeded by nearly a 10th its P10.367-billion goal for November by actually collecting P11.363 billion. Final data reported by the Treasury bureau late last month showed the Customs bureau collecting some P329.298 billion as of October, seven percent more than a year ago but still 21.86% short of the P411.182-billion goal set for those 10 months.
BOC to importers, brokers: Talk on graft or lose accreditation philstar.com 30th Nov 2016
Customs Commissioner Nicanor Faeldon yesterday threatened to remove the accreditation of brokers and importers who will not reveal the names of Customs employees and officials involved in irregularities. He said he will give the estimated 11,000 brokers and importers one month, or until the end of the year, to come to him and tell what they know or else he would cancel their accreditation. “I do not believe that you do not know those who are transacting at the BOC for the illicit procedures,” he said. Faeldon said if the brokers and importers are really inconvenienced by the illegalities taking place inside the Bureau of Customs, it should not take them a year to come forward and report to him. Erring brokers and importers are the problem, he added. Faeldon has been commissioner for five months, but no one has approached him. These brokers and importers are hiding the identities of the corrupt BOC personnel for their own personal interest, he said.
Dominguez orders lifestyle check on Customs execs Manila Bulletin Business 14th Nov 2016
The Department of Finance (DOF) yesterday ordered a lifestyle check on executives of the Bureau of Customs (BOC) as part of the Duterte administration’s ongoing efforts to rid the agency of graft and corruption. In a statement, Finance Secretary Carlos G. Dominguez III said that aside from the lifestyle check, they will also conduct a forensic analysis of data in the bureau, including the possible opening of bank accounts linked to fraudulent or corrupt activities. Dominguez said the lifestyle check will cover all Customs officials, including its commissioner. “That’s why part of our legislative agenda is to make sure that the privacy laws on bank accounts will allow the government to look into the bank accounts of people that have very strong evidence of corruption or tax evasion,” Dominguez said. The DOF has submitted to the Congress the first package of its proposed comprehensive tax reform program, which covers the lowering of personal income tax (PIT) rates and several measures to offset the projected revenue erosion from the PIT reductions. On the administration side, the DOF is now in the process of implementing reforms in Customs and Bureau of Internal Revenue (BIR) to make the tax system simpler, fairer and more efficient.
Immediate implementation of higher tax exemption for balikbayan boxes sought philstar.com 13th Nov 2016
With the holidays just around the corner, Sen. Juan Edgardo Angara yesterday urged the Bureau of Customs to ensure that the law granting higher tax-free ceiling for balikbayan boxes is implemented immediately. Signed last May, Republic Act 10863 or the Customs Modernization and Tariff Act (CMTA) raised from P10,000 to P150,000 the tax-exempt value of items in a balikbayan box sent by overseas Filipinos to their families. Angara urged the BOC to release immediately the administrative order for the implementation of a CMTA provision on balikbayan boxes, noting the holiday season is just a little over a month away. The senator said the immediate release of the BOC order would help ensure that overseas Filipinos can enjoy the benefits of the new law, especially during the holidays. Citing data from the BOC, he said around 400,000 boxes are shipped to the country every month. The figure usually doubles during the Yuletide season. Aside from the balikbayan boxes, Filipinos who have been away for at least 10 years are entitled to tax exemption for personal and household effects not exceeding P350,000 that they will be bringing with them when they return home. Those who have been overseas for at least five years are entitled to tax exemption on personal and household effects amounting to P250,000. Those who have stayed abroad for less than five years can enjoy P150,000 tax-free ceiling. RA 10863 raises the de minimis value, which refers to the value of tax and duty free goods and the minimum cost of goods required to undergo formal Customs entry, from the present P1,000 to P10,000.
Defense & Security
Military maintains 'white' alert in Metro Manila philstar.com 2nd Dec 2016
The Armed Forces of the Philippines is maintaining a "white" or normal alert in Metro Manila despite a police announcement that Terror Alert Level 3 has been raised in the country. At a press briefing at Malacañang, Brig. Gen. Restituto Padilla, AFP spokesperson said the primary responsibility for securing cities is with the Philippine National Police and that the military is only tasked with providing support when needed. He said that according to the AFP's assessment, the improvised bomb found near the US Embassy on Roxas Boulevard on Tuesday and that prompted the heightened alert status has already been addressed by the PNP. He added that the military's Joint Task Force National Capital Region is ready to assist with providing security and may deploy uniformed personnel and checkpoints in Metro Manila. The AFP has a three-level alert system, with "white" as the lowest and "red" as the highest. When on red alert, all military personnel are required to report to their camps and man their posts. "Blue" alert means 50 percent of all personnel must report to camps and prepare for "possible contingencies," Padilla explained. Philippine National Police Director General Ronald Dela Rosa announced Thursday that Terror Alert Level 3 had been raised across the Philippines because of the bomb found on Roxas Boulevard. The police have already taken two men into custody over the attempted bombing. He said the bomb, which police detonated safely after it was discovered by a street sweeper, had been brought to Manila all the way from Mindanao.
Dela Rosa: PNP under 'terror alert level 3' Rappler 1st Dec 2016
The Philippine National Police is now on "terror alert level 3," PNP chief Director General Ronald dela Rosa said on Thursday, December 1. Dela Rosa made the announcement in a news conference at Camp Crame, where he presented two suspects in the alleged attempt to plant an improvised explosive device (IED) near the United States embassy in Manila. Asked what the terror level alert means, Dela Rosa said it's "police terminology" and urged the public to be vigilant. PNP spokesperson Senior Superintendent Dionardo Carlos explained that under the Terror Threat Advisory System of the Anti-Terrorism Council, an area is placed under Threat Level 3 "when a terrorist attack is a strong possibility within a short period of time.” Dela Rosa said, however, that there's no need to panic at this point. "Alert lang tayo (Let's just be alert). I’m advising the public to be vigilant, to be alert, to be cautious, but don’t panic. Relax. Enjoy your Christmas," the PNP chief said. He said checkpoints around the country, which President Rodrigo Duterte had earlier ordered removed, will be restored. The country is still under a "state of national emergency on account of lawlessness" following the Davao City blast which claimed the lives of at least 15 people. The Maute terror group is held responsible for the Davao incident. The IED discovered along Roxas Boulevard was reportedly the same as the one used in the Davao blast, police had earlier said, leading them to suspect that the Maute group could be behind it as well. Immediately after Dela Rosa’s announcement, people online expressed apprehension over the declaration, saying it would lead to the suspension of the privilege of the writ of habeas corpus or the declaration of martial law. President Rodrigo Duterte earlier said he was considering the suspension of the writ, which would allow security forces to conduct warrantless arrest. "Please do not expect that to happen. We do now have plans, that’s far from our minds. We will just make sure that [no acts of terror] happen again. We’ll make sure nothing gets past us," Dela Rosa said.
Bomb defused near US Embassy linked to Maute group: officials BusinessWorld 29th Nov 2016
Police defused a bomb near the US embassy in Manila on Monday, with militants who had declared allegiance to the Islamic State (IS) group likely behind the attempted terrorist attack, authorities said. A taxi passenger dropped the mortar bomb with a mobile phone detonator in a rubbish bin about 200 meters (650 feet) from the embassy along one of Manila’s busiest roads, but a street sweeper found it and alerted authorities, police said. “This is an attempted act of terrorism,” Philippine National Police (PNP) Chief Director-General Ronald M. dela Rosa told reporters, adding he believed the Maute Islamic militant group currently facing a military offensive in the southern Philippines was the prime suspect. “Because of an ongoing police/military operation there, (the militants) have many casualties. We can theorize that this is a diversion to loosen our operations,” Mr. dela Rosa said. Police said they detonated the bomb just over an hour after it was discovered. Meanwhile, Mr. Duterte’s spokesmen as well as his police chief dismissed speculations that the incident in Manila was a prelude to the suspension of the writ of habeas corpus, going by the country’s experience with martial law under the Marcos dictatorship.
Russia eyes supplying military hardware to PH Philippine Daily Inquirer 29th Nov 2016
Russia’s ambassador to the Philippines said Tuesday that Moscow is not discussing a military alliance with Manila, but rather a partnership and friendship that would see Russia supply arms and transfer technology to the long-standing U.S. ally. Ambassador Igor Khovaev told a media forum that the two countries’ economic and trade commission will start work soon to identify specific areas of cooperation. The commission’s Russian co-chair will be visiting Manila soon, he added, without giving a date. Khovaev said Russia is open to all options for bilateral cooperation, including the long-term supply of military hardware “without political conditionality” like adherence to human rights. He was apparently alluding to the U.S. Congress’ conditions for release of military assistance. Khovaev said Duterte is also expected to pay an official visit to Russia next year. Russia is “interested in long-term cooperation” that is comprehensive and includes “all forms — supply of arms and weapons, staff training, maintenance, transfer of technology,” he added. Aside from supplying arms and weapons, Russia is also open to cooperation in all areas, including building infrastructure like railroads, supplying electric equipment, oil and gas ventures, increasing tourism, trade and people-to-people contacts, he said. Philippine Defense Secretary Delfin Lorenza is due to fly to Russia next week. He said he will discuss defense cooperation with his Russian counterpart, Sergey Kuzhugetovich, and will shop for Russian military equipment, specifically sniper rifles for ground troops.
5 military exercises with US scrapped | Malaya Business Insight Malaya Business Insight 24th Nov 2016
Armed Forces chief Gen. Ricardo Visaya yesterday said there will be 258 military exercises between Philippine and American forces next year, down by five compared to this year. “There will only be about 258 (exercises) I think. Previously, there are about 260 plus so there is reduction of around five,” said Visaya. Visaya said scrapped were the Amphibious Landing Exercise (PHIBLEX) and Cooperation Afloat Readiness and Training (CARAT), both naval exercises that include territorial defense trainings, and three others he could not remember. The Balikatan exercises will be retained. “Balikatan will not be scrapped, it will continue but the focus of the Balikatan will be HADR (humanitarian assistance and disaster relief) or response to disasters,” said Armed Forces spokesman Brig. Gen. Restituto Padilla. Padilla said the 258 exercises that Visaya referred to included the small ones, like those that involve a few soldiers on both sides. Earlier this month, the defense department said it wants the exercises reduced to six or seven from 13. The military said the 13 are actually the major exercises that the two countries hold. Asked for the reaction of the Americans to the proposal to reduce the exercises, Visaya said: “They respected it. As I told you, we can always change some exercises based on the guidance of our President.” President Duterte has said he wants the military exercises with the US stopped.
PEZA floats proposals for defense industry manufacturing centers BusinessWorld 21st Nov 2016
The new director-general of the Philippine Economic Zone Authority (PEZA) said that she is planning to build defense industrial complexes, aiming to attract export-oriented manufacturers to build facilities that may aid the country in building up its defense capability. PEZA Director-General Charito B. Plaza told reporters on Nov. 17 that the complete will be put up in consultation with the Department of National Defense (DND). “It’s one of the economic zones we’ll be building in PEZA. It’s going to be like this. We have military reservation areas. These could probably be utilized as defense industrial complexes depending on the studies that will be undertaken by the Department of Defense,” she said last week. “I suggested that we put up a defense industrial complex. One in Palawan because it’s facing the Spratlys, one in Zambales because it’s facing Scarborough. We might continue Olongapo as a shipyard, and Clark as an aircraft manufacturing center. I suggested to put up at least two in Mindanao.” The industries will be exporters, though she is open to arrangements that supply equipment to the Philippine armed forces. Ms. Plaza, who replaced former Director-General Lilia B. De Lima after the latter retired earlier this year, said that the first complex would be in the Government Arsenal in Bataan. PEZA is currently “window shopping” for firms that could possibly locate in the Philippines. She said that she attended a military and police exhibit in Qatar. The new leadership of PEZA hopes to have a complete map of possible locations for special economic zones in January. Until then, she said she would be consulting the defense department on the proposal for defense industries in economic zones.
China's Xi presses Philippines, Vietnam to keep South China Sea issues bilateral Reuters 20th Nov 2016
China's President Xi Jinping, in separate meetings with the leaders of the Philippines and Vietnam, said disputes over the South China Sea should be resolved bilaterally, state media reported on Sunday. The comments underscore Beijing's opposition to involving other countries or international organizations in the maritime territorial dispute, where claimants to the waters also include Malaysia, Brunei and Taiwan. Experts say China prefers a 'divide and conquer' tactic over allowing its opponents to group together. Beijing has also repeatedly blamed the United States for stirring up trouble in the South China Sea, and opposes an arbitration tribunal's July ruling in favor of the Philippines, rejecting China's claims to economic rights across large swathes of the waters. During a meeting in Peru, Xi told Philippines President Rodrigo Duterte "to actively mull maritime cooperation and promote positive interaction on the sea," turning the South China Sea into "an opportunity for bilateral friendly cooperation," said the official Xinhua news agency. That sentiment was echoed by Duterte, Xinhua reported. The Philippines president has overseen a rapid improvement of previously frosty relations between the two countries since taking office in June. The Philippines "is willing to properly address maritime issues with China through dialogue and consultation," said Xinhua.
With Trump, PH may have to pay for US protection Inquirer 14th Nov 2016
The Philippines will have to dig deep into its pockets to secure and defend its porous shores under a Trump administration, which is expected to require the United States allies to pay for American military protection. During a forum held by the Miriam College Department of International Studies yesterday, Senior Associate Justice Carpio said the biggest impact of a US President-elect Donald Trump on the Philippines was the anticipated cutbacks on American military spending, especially as part of his campaign promise to cut expenses and reduce the government’s debt. “The US President will require allies of the United States to help defray the cost of maintaining the US forces in their area. That will be hard for us because we cannot even put up a credible self defense force,” said Carpio. During the campaign, Trump blamed the excessive military spending for the US government’s huge debt and urged his country’s allies to pay their fair share of the cost of maintaining global security.
Economics
Weakness of trade to persist -- ESCAP BusinessWorld 1st Dec 2016
The Philippines and much of Asia Pacific can be expected to see some recovery in merchandise exports next year, according to a United Nations (UN) report that nevertheless warned that structural changes to major economies like China could mean the current trade slowdown is not a glitch and could persist. “Altogether, 2015-2016 has been a worrying period for trade in the Asia-Pacific region and worldwide, and there are few signs that the current economic and trade slowdown is simply a temporary phenomenon,” read the Asia-Pacific Trade and Investment Report 2016: Recent Trends and Developments report which the UN Economic and Social Commission for Asia and the Pacific (ESCAP) launched yesterday. The report said that while “cyclical” factors have been in play since 2015 -- including a downtrend in commodity prices, as well as exchange rate and capital flow volatility -- the current trade slowdown “may be the result of a change in the fundamental structure of world trade, which may lead to persistent trade stagnation, increasingly labelled as great normalization.’” The report, which used comparative data as of mid-May, particularly cited economic restructuring in China -- which accounts for a third of Asia-Pacific’s merchandise exports -- away from trade in goods towards domestic consumption and service-driven growth. “[C]ountries tied to China through global value chains (e.g. Thailand, the Philippines and the Republic of Korea) are expected to experience large export (and smaller import) contractions in 2016, before witnessing a smaller-than-average rebound in 2017,” ESCAP said.
Mindanao businesses back tax reform BusinessWorld 1st Dec 2016
The Mindanao Business Council expressed its support for the government’s efforts to overhaul the tax system, saying that the reforms will make taxation more fair, provide relief for the middle class, and provide a boost to consumption. Specifically to Mindanao, the council’s Chairman Vicente Lao said in a statement that reforms could provide a “starting point” for economic prosperity in the southern island, particularly in conjunction with the government’s plans to eradicate poverty. The DoF submitted the first package of its five-part series of tax reforms to the Congress in September, and hopes to start implementing the measures in early 2018. On the reduction of the personal income tax, the MBC said “[it] is immediately needed and rightfully deserved by the Filipino taxpayer” as “this will provide due relief for the middle and lower-income classes and spur consumption, the effects of which we hope to feel immediately in Mindanao.” The MBC also supports the expansion of excise taxes on oil products and automobiles, and removal of “unnecessary” exemptions enjoyed by the rich and senior citizens, to offset the losses from reducing personal income tax.
Govt targets 1.2M new jobs annually | BusinessMirror BusinessMirror 1st Dec 2016
The government has upped the ante in its employment-generation program, now targeting to create 1.2 million jobs annually from 2017 to 2022. Achieving the target is not just about the robust outlook for key economic drivers, like infrastructure and manufacturing, but also the need to settle the lingering issue on how to end the so-called endo, or illegal contractualization. Labor Secretary Silvestro H. Bello III announced that Department Order (DO) 18-A, which governs the registration of contractors, will be amended or repealed before the end of the year. However, the government is not inclined to completely abolish all forms of contractualization, and will, instead, push for a “middle ground”, so both labor and management will be happy. “We will come up with a policy or guidelines that will be enforced by the department before the year ends. We will decide whether we will amend, revise, or repeal Department Order 18-A,” Bello said in a statement. “We are envisioning an increase of 1.2 million in job creation annually,” Bello told reporters. Budget Secretary Benjamin E. Diokno earlier said the construction sector alone can generate 1 million fresh jobs annually with the administration’s P8.2-trillion “Golden Age of Infrastructure” campaign. Construction will lead the demand for growth, more so as the Department of Labor and Employment (DOLE) intends to remove the fee on regulatory requirements, such as the basic occupational safety and health certificate (BOSH). “Carpenters, electricians and plumbers are all very much in demand. Despite the demand, not a lot are applying in the industry,” Labor Undersecretary Dominador R. Say said. Creating a million jobs in a year is realistic, said the DOLE, as this has been achieved three times under the Aquino administration: in 2011, in 2014 and in July 2015 to June 2016.
Infrastructure spending, FDI, manufacturing to fuel 2-digit growth BusinessMirror 28th Nov 2016
The government is confident of hitting double-digit growth before President Duterte ends his term in 2022, to be driven by the rejuvenated manufacturing sector, foreign direct investments (FDI) and heavy spending for infrastructure. Budget Secretary Benjamin E. Diokno on Monday said the government’s infrastructure spending can exceed the initial P8.2-trillion target to reach around P9 trillion in six years. The amount of infrastructure spending can also increase the number of jobs, which augurs well for a consumption-driven economy and the need to create at least a million new decent jobs per year. “[The economy can grow] double digits, so at least 10 percent,” Diokno said. “[This will be driven by] infrastructure and investment. I’m sure FDI will come; there will be more jobs, more economic activity, tourism [and] manufacturing.” Diokno said the government aims to attain a GDP growth rate of 8 percent by 2022. But this, he said, is a conservative estimate, given the planned public infrastructure spending of the Duterte administration. He said the P8.2-trillion to P9-trillion infrastructure spending does not include the public-private partnership (PPP) projects, which will continue under the Duterte administration. Diokno said the administration will tweak the PPP Program by accepting unsolicited project proposals and undertaking hybrid PPP projects, where the government constructs the infrastructure and the private sector operates and maintains it.
PHL to miss 2016 export-growth goal BusinessMirror 27th Nov 2016
Slower global economic growth has made it more difficult for the Philippines to hit its target of increasing merchandise exports by 3 percent this year, according to the Philippine Exporters Confederation Inc. (Philexport). Philexport President Sergio R. Ortiz-Luis Jr. said Philippine exporters would end the year with lower earnings, despite the weakening of the peso, which is considered a boon for export sectors. “The decrease in goods trade has been too negative, it could end up negative by the end of the year,” Ortiz-Luis said on the sidelines of a forum organized by the Bank of China. Including the export of services, the Philexport chief said overall exports growth in 2016 would still be flat. Data from the Philippine Statistics Authority (PSA) showed that export receipts in September reached $5.21 billion, a 5.1-percent increase from $4.96 billion recorded a year ago. This, however, was not enough to pull up export revenues in January to September. Receipts from shipments of Philippine-made goods declined by 6.2 percent year-on-year in terms of value during the period. September’s exports data represented the first time in over a year that earnings recorded an increase, as sluggish global trade caused revenues to decline on a monthly basis.
Business confidence falls amid concern over Duterte policy shift BusinessWorld 26th Nov 2016
Businesses grew less bullish during the fourth quarter to break the usual pattern ahead of the holiday season, amid concerns over policy changes under the Duterte administration and a weaker peso to log a two-year low, the Bangko Sentral ng Pilipinas (BSP) said. Based on the central bank’s business expectations survey, 39.8% said they are optimistic about local prospects for the last three months of 2016, slipping from a 45.4% confidence index logged during the third quarter and the 51.3% posted a year ago. The reading is the lowest since the 34.4% tally for the third quarter of 2014, and breaks the traditional surge in optimism ahead of the Christmas season. The survey was conducted among 1,470 firms between Oct. 3 to Nov. 17. The last time when the fourth quarter confidence index reading dropped from the previous quarter was in 2004, BSP Managing Director Fracisco G. Dakila, Jr. said in a press briefing. In an Oct. 20 speech in Beijing, President Rodrigo R. Duterte announced that he is “separating” from the US’ military and economic hold in pursuit of an “independent” foreign policy. This was later on clarified by members of the Cabinet as signalling stronger trade ties with China and other Asian economies. Since assuming the top post last June 30, Mr. Duterte has also been publicly cursing economic giants like the US and the European Union, labelling them as “bullies” and even threatening to have them pull out their investments in the Philippines. At the same time, the peso has been treading seven-year-lows versus the US dollar for the past few weeks, as markets await for a looming interest rate hike by the Federal Reserve and from heightened uncertainty after Republican Donald J. Trump scored a surprise victory during the US presidential elections. For the first quarter of 2017, the firms also grew less optimistic at 34.5% from a 58.8% reading as they expect a usual slowdown in consumer demand directly after the holidays.
IMF: Thailand, PH best prepared to withstand pressure on currency Manila Bulletin Business 26th Nov 2016
Less than a decade ago, the International Monetary Fund (IMF) used to talk about Asian countries piling up too much in their currency-reserve stockpiles. The global financial crisis turned that conclusion on its head, and now that US interest rates are poised to keep climbing, the race is on to identify which countries have the strongest buffers against capital flowing out toward developed markets. A measure developed by the IMF itself shows that Thailand and the Philippines may be best placed to withstand further downward pressure on the emerging currencies in Asia, based on calculations taken before the Donald Trump-induced US reflation play roiled the foreign-exchange market. The IMF last month forecast Thailand’s reserves at $163.3 billion at year-end, compared with the $64.9 billion needed according to the so-called Assessing Reserve Adequacy gauge, which incorporates criteria from short-term debt to money supply, imports and investment flows. The Philippines was heading for a $84-billion hoard, against a $31 billion need. The measure shows Malaysia – not coincidentally the worst performing of the major emerging Asian currencies against the dollar this month – faring poorly by comparison, with a $100 billion reserves projection against short-term external debt of $128.2 billion, based on IMF estimates. Looking beyond Asia, Turkey, South Africa and Mexico are among those deemed more vulnerable by the assessments.
Peso breaches P50-per-dollar, a 10-year low BusinessWorld 25th Nov 2016
Thursday’s intraday session saw the local currency hitting flat P50 per dollar, before paring some of the losses to end firmer at P49.98. The last time the peso touched P50-to-the-dollar was on Oct. 23, 2006 when it closed at P50.055. Trading was cautious with volume below the daily average at $437.6 million from $360.5 million the previous session, data from the Philippine Dealing & Exchange Corp. showed. “Still, we continue to see dollar strength as the market is now pricing in almost 100% probability that the Fed rate hike will happen in December to which consequently, we’ve seen a fresh high for the dollar (against the peso),” a trader said in a phone interview yesterday. Citing CME FedWatch’s data, Reuters reported that the odds of the Fed raising rates come Dec. 13 to 14 now stand at 100% following release of the Fed minutes Wednesday night. “...[A]nd some investors expect more hikes next year if economic momentum is sustained,” Reuters added. The Fed’s policy-making body Federal Open Market Committee (FOMC) minutes revealed that, during its Nov. 1 to 2 meeting, policymakers were very hawkish about raising interest rates soon. ING Bank Senior Economist Joey Cuyegkeng said in an e-mail sent to reporters just before the local currency spot market closed that the peso’s decline against the dollar was aligned with “weakness of other Asian currencies.” Finance Undersecretary and the Department of Finance’s Chief Economist Gil S. Beltran said in a statement that the peso’s decline against the dollar was “expected as an impact of the Fed normalization. The peso is just normalizing. It was P57 per the US dollar in 2004. All other currencies are moving in the same direction.”
Still our top export: people Philippine Daily Inquirer 25th Nov 2016
Counting net foreign exchange earnings brought into the economy, our biggest export earner is not electronics. It is people. And it has been that way for at least the past decade. According to latest official statistics from the Bangko Sentral ng Pilipinas (BSP), overseas Filipino workers sent home $2.6 billion in September 2016, bringing the January-September total to $22.1 billion. In the same month, electronics exports earned us also $2.6 billion, but we had also imported $1.8 billion worth of electronics that are mostly processed into those exports. The net amount brought in by electronics was thus about only $800 million, less than a third of what OFWs sent home to their families. Remittances also amounted to more than four times all the foreign direct investment inflows we managed to attract in 2015. We are, indeed, in the lucrative business of exporting our people. Growth in remittances has mellowed from annual growth rates exceeding 20 percent in the past decade, to just around 4 percent now. Statistics also show a similar slowdown in deployment of contract workers abroad, and even outright declines (in 2014). The good news is that our unemployment and underemployment rates are also significantly down, with unemployment now below 6 percent—the lowest we’ve seen ever. These trends imply that employment opportunities here at home are growing more than enough to compensate for slowing overseas employment, especially with the sustained surge in the manufacturing sector that is also raising the quality of available jobs. We just may be getting to a situation where overseas employment is becoming more of an option rather than a necessity for large numbers of Filipinos. And that’s good news.
Land-conversion ban won’t hurt ecozones BusinessMirror 24th Nov 2016
The Philippine Economic Zone Authority (Peza) said on Thursday it remains optimistic that the moratorium on land conversion will not affect its efforts to set up more economic zones nationwide. Peza Director General Charito B. Plaza told the BusinessMirror on the sidelines of the Global Investment Forum at F1 Hotel that the agency received a total of 29 new ecozone applications. These applications, unlike the 32 ecozones that are already awaiting the President’s approval, still need to complete documents and would have to be evaluated by the Peza Board, which is slated to meet next week. These proposals will be good additions to the Peza’s aim of increasing the number of ecozones, which can continue even under a land-conversion moratorium. This includes untapped land in Mindanao, which, she said, contributes as much as 40 percent to the country’s GDP but fail to receive the same amount in terms of development or investment. Peza is now studying the number of available government land and islands nationwide so that it can determine the best locations for ecozones. These economic zones can also attract the business-process outsourcing (BPO) industry, banks and financial intermediaries, schools, malls, hotels, retirement villages and others. Apart from large economic zones, the Peza is also willing to explore locating special economic zones in cities such as Quezon City, which will help decongest traffic in Metro Manila.
Politics main risk to PH growth Philippine Daily Inquirer 21st Nov 2016
The fundamentals are solid to sustain the Philippines’ economic growth in the near term, but politics—specifically a combination of the Duterte and Trump presidencies—could sour prospects in the next four to six years, according to London-based economic research consultancy firm Capital Economics. While the economy “remains in good health” following the robust 7.1-percent gross domestic product (GDP) growth in the third quarter, Capital Economics senior Asia economist Gareth Leather said “recent political events, both in the US and domestically, have made the outlook much less certain.” Capital Economics kept its GDP growth forecast for the Philippines of 7 percent for 2016 and 6.5 percent for 2017, although Leather said “the risks are now firmly to the downside.” The government targets 6-7 growth this year and 6.5-7.5 percent 2017. For Leather, the medium-term economic outlook “has become much less certain following the election of Donald Trump as the next US president.” “While it remains to be seen if Trump will follow through on some of his more protectionist policies, if he did, the repercussions for the Philippines would be significant. Remittances to the Philippines from the US are equivalent to 3 percent of the country’s GDP, while exports to the US are equivalent to a further 4 percent. The Philippines’ booming business outsourcing sector, which has benefited hugely from US investment, would also be hit hard by any attempt to bring back jobs to the US,” Leather explained. On the domestic front, Leather said President Duterte “is continuing to unnerve investors with a series of controversial comments and erratic foreign policy changes.” “With Duterte in charge, it is hard to rule out a sudden shift in economic policy or a disruption of the political stability that has characterized the last six years. Either would cause sentiment to sour and growth prospects to weaken,” according to Leather.
Philippines’ China ‘pivot’ seen to add fuel to growth BusinessWorld 21st Nov 2016
The Duterte Administration's friendlier stance towards China is expected to help boost growth prospects for 2017 amid global uncertainty, an analyst at Credit Suisse said, adding that a Trump presidency in the United States is unlikely to halt investments to the Philippines. Apart from the planned increase in government spending under President Rodrigo R. Duterte, Credit Suisse said warmer relations with China should help support rapid gross domestic product (GDP) growth next year. “We expect expansionary fiscal policy to support growth in 2017, and forecast government spending to rise to 18.1% of GDP next year from an estimated 17.5% of GDP in 2016,” Credit Suisse research analyst Michael Wan said in a Nov. 17 report. “We also view the Philippines’ ‘pivot’ towards China’ as a net positive for 2017 GDP and balance of payments, as it will help bring in more FDI and tourism from China in 2017 with political drags removed,” he added, referring to tensions from competing claims over parts of the South China Sea. The President’s rebalancing is also seen to help keep the current account in surplus as increased transactions with China would prop up the country’s trade at a time of a slump in global demand, Credit Suisse added. Socioeconomic Planning Secretary Ernesto M. Pernia has said the timing of a pivot to China may be opportune, following heightened policy uncertainty in the US due to a perceived protectionist and anti-immigrant slant under a Trump presidency starting January next year. However, Credit Suisse’s Mr. Wan said a “sharp slowdown” in US foreign direct investments (FDI) to the Philippines is unlikely. “Our analysis across the region suggests that the US FDI is driven more by structural economic considerations rather than political noise, unlike in China.”
Economists see PH on higher growth track for Q4 and 2017 Rappler 20th Nov 2016
Economists are optimistic about the Philippine economy's full-year growth for 2016 following a strong showing in the 3rd quarter. The country's gross domestic product (GDP) grew by 7.1% in Q3, beating market expectations and outperforming other Asian nations which have already released their data, including China and Vietnam. The Q3 figure also means that the economy needs to grow by only 3.4% in Q4 to attain full-year growth of 6%, while a Q4 growth of 6.9% would see the country reaching the government's high-end target of 7%. "Our full-year projection is 7.0% as Q4 usually is unaffected due to the strong seasonality factor," said Alvin Ang, an economist from the Ateneo de Manila University. The Christmas season usually brings stronger consumption as well as higher remittances from overseas Filipino workers (OFWs). Some of this optimism, however, is tempered by risks in what is a volatile global economy. These risks include the continued slow global economic growth and investor sentiments at home. Other concerns for Q4 include a looming US Federal Reserve rate hike that is expected in December, which would send foreign funds flowing back to developed markets. The Philippine peso has dropped to an almost 8-year low after the Federal Reserve minutes pointed to a rate hike "relatively soon." Philippine stocks were also not immune to global sell-offs in the wake of Donald Trump's surprise victory in the US presidential election. They fell 2.58% in the immediate aftermath of the polls, although they have since recovered. There are also concerns that Trump's policies will affect the Philippine economy through lower remittances from OFWs based in the US, plus a potential hit to the BPO sector. Both Ang and Terosa said they expect the effects of Trump's policies to be felt next year.
‘Ease foreign investment limits,’ US official urges PH The Manila Times 20th Nov 2016
The Philippines must ease restrictions on foreign investors and improve infrastructure to attract more investment, particularly from the United States, as crucial steps to expanding trade and growing the economy, a US official said. “The Philippines is one of the most restrictive countries in the world against foreign investment, with more barriers than any other large Asean country,” US Embassy Manila Trade Officer Brian Breuhaus said in a statement over the weekend. The constitutional restrictions on foreign investment, widely known as the 60-40 rule, must be relaxed, Breuhaus said. The Constitution stipulates that only Philippine nationals are allowed to operate a public utility. This applies to nearly all public-private partnership (PPP) projects. “No American firms have been involved in a PPP, and no foreign firms have taken the lead on a PPP, even though they could provide a huge amount of expertise. This would take a constitutional change,” Breuhaus said. The Philippines can also relax the limits set under the Foreign Investment Negative List, he said. Breuhaus underscored the need for better infrastructure, including roads, airports, seaports and internet connectivity. For a start, a Single Window in Customs could make it easier for goods to be shipped here. The Trade Facilitation Agreement at the World Trade Organization must also be approved, the US official noted. “This [Single Window] is a promise the Philippines has made under Asean,” Breuhaus stressed. The US is among the largest foreign investors in the Philippines, with a current stock of $4.7 billion in Philippine placements.
WB ranking for ease of tax compliance sees Philippines up 11 spots BusinessWorld 18th Nov 2016
The Philippines rose 11 places in a global ranking of ease of tax compliance for businesses, according to the World Bank Group (WB) and PricewaterhouseCoopers (PwC). Using 2015 data, the Paying Taxes 2017 study placed the Philippines 115 of 180 countries. A year earlier, the country was 126 out of 189 countries. The United Arab Emirates and Qatar tied for the top ranking, followed by Hong Kong, Bahrain, Ireland, Kuwait, Denmark, Singapore, Macedonia, and the United Kingdom. At the bottom were Chad, Mauritania, Central African Republic, Bolivia, Guinea, Nigeria, Brazil, Equatorial Guinea, Argentina, and Benin. With the global total tax rate falling to 40.6% and the Asia-Pacific average at 36.2%, the total tax rate in the Philippines remained unchanged at 42.9%. Profits tax in the Philippines was 20.3%, while the labor tax rate was at 8.7%. “The small decrease in the (global) Total Tax Rate results from 44 economies increasing taxes while 38 recorded a reduction. It also represents a combination of a decrease in other taxes’ offset by small increase in both profit and labour taxes,” PwC report said. The time it takes for Philippine medium-sized companies to comply with tax obligations totaled 186 hours, an improvement from the 193 hours recorded a year earlier. Globally, compliance time declined by 8 hours to an average of 251 hours.
Philippines eyes investments in advanced technologies philstar.com 18th Nov 2016
The Philippines wants to attract more investments in advanced technologies within the medium term in line with plans to eventually turn into a knowledge-based economy, the National Economic and Development Authority (NEDA) said. NEDA deputy director general Rosemarie Edillon said while the country’s new medium term economic blueprint is still strongly anchored on the Duterte administration’s 10-point economic agenda – a set of economic policy guidelines ultimately aimed at reducing inequality and poverty and spurring growth in the regions – it is also looking at the need of the economy to eventually make the transition into a knowledge-based one. As such, the new Philippine Development Plan (PDP) 2017-2022 – which is expected to be completed by the end of January 2017 – would contain a separate chapter in science, technology and innovation that goes beyond the needs to address current technological constraints in the economy such as the need to increase agricultural productivity and improve manufacturing processes. This is the first time the medium term development plan would contain a provision for increasing the economy’s exposure to the development of cutting edge technology. She said while current technological needs of the economy would be given attention, the Philippines would be laying down the groundwork for attracting investments in this sector. Edillon said NEDA has not yet gone into the details on sources of investment to fuel this gradual shift but negotiation trade in services to be held with Japan and the European Union may enable the country to gain traction. Edillon said the government would increase the budget for scholarships for students taking up science and technology, engineering, agriculture and fisheries research, and mathematics.
BusinessWorld | Philippines leads Asia growth in Q3 BusinessWorld 18th Nov 2016
The Philippine economy last quarter expanded at its quickest pace in three years, allowing the country to remain the fastest-growing among Asia’s emerging markets. In a press briefing, the Philippine Statistics Authority (PSA) announced that the country’s gross domestic product (GDP) grew by 7.1% in the three months ending in September. GDP is the amount of final goods and services produced in the country, and as such is the conventional measure of economic performance. The latest headline growth figure is a notch higher than the previous quarter’s 7% and the highest since the 7.9% clocked in the second quarter of 2013. During the briefing, National Economic and Development Authority (NEDA) National Planning and Policy Staff Director Reynaldo Cancio said the latest GDP figure makes the Philippines the fastest growing in the region, ahead of China’s 6.7%, Vietnam’s 6.4%, Indonesia’s 5%, and Malaysia’s 4.3%. India -- which beat the Philippines in the second quarter -- has yet to release its data. “This cements our chance of achieving our target of 6-7% for the whole of 2016,” Mr. Cancio said, adding, “This growth is above median market expectation of 6.8%.” The first three quarters saw 7% growth, compared to the 5.7% clocked in 2015’s comparable period. Mr. Cancio said the country needs to grow this quarter by at least 3.4% to reach the 6% lower end of the full-year target, and by 6.9% to reach the 7% higher end. What fueled expansion the most was capital spending, as construction grew by 16.8%, faster than the 15.4% the previous quarter. The growth here was broad-based as both government and private sector build-up quickened. In a report, Nomura said the Philippines’ economic momentum will continue into 2017 and 2018, despite political noise generated by President Rodrigo R. Duterte’s controversial remarks.
HSBC: political fears to weigh on peso BusinessWorld 17th Nov 2016
Political uncertainty could keep prospective foreign investments to the Philippines on the fence and prolong the peso’s weakness, banking giant HSBC said in a report, with the currency seen ending the year at the P49 level against the dollar. Policy shifts following presidential succession in the Philippines and the United States will likely aggravate market volatility for some time, fueling continued depreciation of the peso, HSBC Global Research said. HSBC analysts said the peso is likely to trade P49.40 against the greenback by yearend, which if realized would be the weakest since Dec. 2, 2008. By end-2017, the bank expects the local unit to close even weaker at P50.70 to the dollar. The peso has been treading seven-year lows in the past few weeks, closing P49.35 versus the dollar in Wednesday’s trading. BSP Governor Amando M. Tetangco, Jr. said on Monday that the peso has been moving in sync with regional currencies against the dollar’s strength, amid expectations that future US policies would lead to higher yields in the world’s biggest economy. HSBC said market jitters over political developments could likewise affect foreign direct investments (FDI), particularly due to sharp turns in policy under President Rodrigo R. Duterte.
Hot money’ rebounds to net inflow in October BusinessWorld 17th Nov 2016
More foreign capital entered the Philippines last month, the Bangko Sentral ng Pilipinas (BSP) announced yesterday, turning around from September’s outflows and more than double the year-ago net inflow on the back of rising optimism on the economy despite tumult in global financial markets. Foreign portfolio investments -- also called “hot money” for the ease by which such funds enter and leave markets -- turned around to a $59.87-million net inflow last month from September’s $807.15-million net outflow and more than double the $27.84-million net inbound capital seen a year ago. “This was mainly due to brighter growth projections by Moody’s Investors Service for the Philippines, in recognition of the country’s sound macroeconomic and fiscal fundamentals, coupled with renewed investor interest in peso government securities,” the BSP said in a statement. In its credit analysis released last month, Moody’s raised its growth forecasts for the Philippines to 6.5% for both this year and 2017, higher than its previous respective estimates of 6.2% and 6% in the face of robust domestic demand and the current administration’s “well-defined” development agenda that is expected to support faster, more inclusive growth. Moody’s also dispelled market jitters, saying the new government is unlikely to implement “anti-foreign” measures that would hinder inward investments. Hot money flows were volatile over the four weeks of October, opening with net inflows in the first week, followed by net outflows on Oct. 10-14 and 17-21 and then ending with net inflows on Oct. 24-28. For October, bulk of the inflows came from the United Kingdom, United States, Singapore, Malaysia, and Luxembourg.
September cash remittances highest for the year, so far; but growth slows BusinessWorld 16th Nov 2016
Money sent home by overseas Filipino workers (OFWs) continued growth in September to post the highest level for the year, so far, though at a slower pace than in August, the central bank reported yesterday. September’s tally means the inflows are on track to hit the central bank’s full-year forecast. Cash remittances totaled $2.383 billion for the month, rising 2.8% from the $2.319 billion seen in August and by 6.7% from the $2.234 billion tallied a year ago, data from the Bangko Sentral ng Pilipinas (BSP) showed. September remittances posted the biggest monthly level for the year so far, though below the record-high $2.47 billion inflows logged in December 2015. September’s growth, however, was slower than the 16.3% climb seen in August, which was attributed to base effects.
Gov’t to review foreign investment negative list in May 2017 Rappler 14th Nov 2016
The move to open up the economy to more foreigner players got a boost as the Department of Finance pegged May 2017 as an opportunity to remove some of the restrictions found on the foreign investment negative list. The foreign investment negative list, which was last updated in 2015, lays out investment areas of the economy that are closed to foreign investment as well as areas where foreign ownership is limited to 40% of the venture. “There are two ways we can lift the [economic] restrictions in the Philippines. One is there are administrative restrictions. The window will open for us to review that in May of 2017 and certainly, the economic team is going to look at lifting administratively some of those restrictions,” Finance Secretary Carlos Dominguez III said in a statement on Monday, November 14. Dominguez pointed out however that the other restrictions are going to be a little tricky because they require either legislative action or changes to the Constitution. The finance secretary earlier said that Congress will have to enact a long-term approach to further liberalize the economy by amending constitutional provisions restricting foreign ownership in all areas of the economy, except land. “Either way, it’s not going to happen tomorrow, it’s going to take a bit of time. Now, according to the President, he wants to open all areas of the economy to foreign investment with the exception of land, which is a very cultural and touchy issue,” Dominguez said.
PHL growth seen slipping to 6.9% in Q3 BusinessWorld 12th Nov 2016
The Philippine economy likely remained upbeat during the third quarter although growth may have slipped by a tad from the 7% reading seen three months prior due to a sustained export slump, aggravated by a decline in nickel production following several state-imposed mine closures, Moody’s Analytics said in a market view. Analyst Jack Chambers said Philippine gross domestic product (GDP) may have grown by 6.9% from a year ago, with domestic consumption helping sustain rapid expansion. “We look for Philippine GDP growth to come in at 6.9% year-on-year for the third quarter, decelerating slightly from the 7% result posted in the three months to June. The main drivers of the economy will continue to be domestically focused, with private consumption, investment and government spending all expanding rapidly,” Mr. Chambers said in a market forecast on Friday. The Philippine Statistics Authority will report third-quarter GDP data on Nov. 17. If realized, the rate would again fall closer to the high end of the government’s 6-7% growth goal for the year and would keep the nine-month average at 6.9%. The forecast rate also picks up from the 6.1% clip recorded during the comparable period in 2015. Moody’s said the persistent drag in global activity likely kept exports in negative territory, dampened by the Environment department’s decision to halt a number of mining operations. Meanwhile, Socioeconomic Planning secretary Ernesto M. Pernia has said that increased infrastructure spending under the Duterte administration would help offset an export slump, which would allow the economy to expand between 6.3%-7.3% during the quarter. Moody’s Analytics remains bullish towards the Philippine economy, in light of “buoyant economic conditions and gains in the service sector,” allowing the country to cement its position as one of the fastest global performers.
Energy
AboitizPower: PH energy sector already competitive Sun.Star 29th Nov 2016
AS telecommunications companies are agreeable to the entry of foreign players, a key player in the power industry believes the Philippine energy business is already being participated in by a wide group of foreign players. AboitizPower president and chief operating officer Antonio Moraza, in a statement, said the Philippine power industry is one of the “most competitive in the region.” “The Philippine power industry is already open to foreign players. We are one of the most competitive in the country, with about 100 registered generators in the market, represented by Korea, US, Thailand, and Japan as investors and owners,” Moraza said.
Energy-efficient buildings offer cost-savings, productivity The Manila Times 28th Nov 2016
DEVELOPERS can benefit profitably from adopting a “sustainable way of thinking” in designing and building their projects, due to long-term cost-savings, as well as the premium that can be attached to so-called green buildings, a renewable energy expert said in an interview. Incorporating sustainability into the integrated design of a building from the very beginning will increase the value of the building, Nadir Abdessemed, a consultant for sustainability and energy efficiency in the built environment for German engineering firm Transsolar told The Manila Times. “A quality that you find in sustainable spaces is a connection to the environment, which is a very intelligent design program, spaces that make you feel delightful,” Abdessemed said in an interview following a public lecture sponsored by the Goethe Institut-Philippines at the University of Santo Tomas on Wednesday.
Gov’t urged help ease shift of Pinoys to green energy Cebu Daily News 28th Nov 2016
WHILE Filipinos are becoming increasingly aware of the benefits of harnessing renewable energy such as solar power, many are still kept from its true potential due to relatively higher prices of technology. To address this gap, Again Philippines Information (API) president Elenita Ompad called on the government to offer loan systems for those who are interested in shifting to clean and renewable energy. “If our government can facilitate easy requirements, then it will be the best (way) for businesses like ours to take off,” she said. Pag-ibig, for instance, provides loans for renewable energy but Ompad said they aren’t “that friendly” yet.
Duterte to open telecom, power industries to foreigners PhilStar 25th Nov 2016
DAVAO CITY, Philippines – President Duterte plans to open telecommunications, energy as well as information and communication technology to more players, including foreigners, to improve competitiveness in these three industries. Speaking at the Davao International Airport upon arrival from New Zealand on Wednesday night, Duterte said the only way to make the poor benefit faster from government policies would be “to open up communications, the airwaves and the entire energy sector.” Duterte attended the Asia-Pacific Economic Cooperation summit in Lima, Peru via New Zealand last week. He digressed from his prepared speech about the summit to discuss his plan to “open up the Philippines.”
ERC chief hoping for 'clearer directions' from Duterte PhilStar 21st Nov 2016
MANILA, Philippines — Energy Regulatory Commission (ERC) Chairman and CEO Jose Vicente Salazar will seek a meeting with President Rodrigo Duterte following the latter's demand for all ERC officials to step down from office. The president warned that he will ask Congress to abolish the ERC, which was created by the Electric Power Industry Reform Act of 2001, if its officials refuse to resign following the suicide of one of their colleagues.
Solon urges DOE to restart West PHL Sea gas, oil hunts GMA News Online 20th Nov 2016
A congressman has urged the Department of Energy (DOE) to reactivate the oil and gas exploration ventures in the West Philippine Sea that were temporarily suspended in 2015. In a statement on Sunday, Surigao del Sur Rep. Johnny Pimentel said deep-water gas exploration of at the WPS should resume since Malampaya, which supplies some 40 percent of Luzon's power demand, might become depleted within the next decade. The DOE put on hold three offshore oil and gas hunts in Northwest Palawan last year out of respect to the Permanent Court of Arbitration in The Hague that was then hearing the maritime case filed by the Philippine government against China.
Philippines greenlights 11 power projects Power Engineering International 15th Nov 2016
The Philippine government has cleared 11 power projects to proceed with grid impact studies, newspaper The Philippine Star reports. The projects totalling 1877.9 MW include plants with diverse fuel sources, data from the nation’s energy department showed. Included are five hydropower projects, three coal-fired power projects, two solar projects and one biomass-fired project. Among the hydropower projects are the 300 MW Bolusao pumped storage plant in Eastern Samar province, the 150 MW Chico project in Kalinga, the 140 MW Davao project in Davao City, and 100 MW and 50 MW pumped storage projects in Rizal.
PIA | DENR Sec Lopez wants affordable renewable energy Philippine Information Agency 14th Nov 2016
TAGBILARAN CITY, November 11 (PIA) -- If there is going to be another source of energy for Bohol, Environment Secretary Regina Paz Lopez says she hopes it would be the renewable kind of source. Commenting on a question during a press conference shortly after her visit to Cambugsay Healing Hills where a 24 hectare coffee plantation and a nursery for Robusta now sits, Lopez admitted she is biased against coal energy. Explaining that she did a study of about 14 coal fired energy plants, she said coal is always bad for the environment.
‘Government should tap safer energy sources in West Philippine Sea’ Business Mirror 13th Nov 2016
Instead of spending $1 billion to revive the Bataan Nuclear Power Plant (BNPP), the chairman of the Senate Committee on Energy urged the government to use money to develop power supply in resource-rich areas of the West Philippine Sea (WPS). Sen. Sherwin T. Gatchalian made the proposal, as the government scrambles to look for alternative energy sources to fill the power-supply shortfall when the Malampaya gas field in Palawan—which accounts for 40 percent of the Luzon grid—dries up in 10 years. In the absence of “compelling positive findings” favoring BNPP’s revival, Gatchalian said, “it would be more prudent to invest the $1 billion required to refurbish the BNPP in the exploration and development of untapped indigenous energy sources, especially within the energy-rich waters of the West Philippine Sea.”
Metal mine production sinks further, but at a slower pace BusinessWorld 5th Dec 2016
The value of production of the country’s 41 metal mines sank in the nine months to September, but an annual increase in the price of gold helped break the fall compared to a year ago. A press statement posted yesterday on the Web site of the Mines and Geosciences Bureau (MGB) said the total value of metallic mineral production sank 11% to P75.93 billion from P85.47 billion in those comparable nine months, although that decline was slighter than the first half’s 13.59% fall and the 20% drop in the first three quarters of 2015. “Poor base metal prices of nickel and copper, coupled with the suspension of six nickel mines in the provinces of Palawan and Zambales, led to the anemic performance of the metallic sector,” MGB said in its press statement. Gold continued to contribute more than the other metals, accounting for 44% of the total at P33.572 billion, reflecting a 30% increase from the year-ago P28.878 billion. This year has seen operations at 10 metal mines nationwide suspended as a result of a state environmental audit, and 20 others face the same fate should they be found liable for various deficiencies and violations. Before that, the industry had already been reeling from a moratorium on new permits that has been in place since 2011 and extended indefinitely through Executive Order No. 79 signed on July 6, 2012.
Mindanao hubs get subsidized power rate Philippine Daily Inquirer 5th Dec 2016
The Department of Energy is expected to provide a subsidized electricity rate of P2.75 per kilowatt-hour to the locators in existing and future economic zones in Mindanao to encourage investors to set up shop on the country’s second biggest island. “(Energy Secretary Alfonso) Cusi told me they have decided to provide a power subsidy to all special economic zones in Mindanao and this means our locators will only be paying P2.75 per kWh for their electricity consumption—that’s the support of the DOE to our special ecozones program,” according to Philippine Economic Zone Authority director general Charito B. Plaza. According to Plaza, they are already drafting the MOA and that they are hoping to sign the agreement soon so they can step up efforts to convince investors to relocate to Mindanao. It was not made clear, however, if the electricity rate cited by Plaza referred only to generation charge or it already included other charges including those for transmission, distribution and system losses. Data from state-run National Power Corp., which continues to operate the Agus-Pulangi hydropower complex, showed that its effective electricity rate stood at P2.8459 per kWh. This amount referred to the agency’s rate to customers being served by the remaining unsold plants that are being operated by Napocor.
PHL nuclear program’s revival faces talent hurdle BusinessWorld 2nd Dec 2016
The International Atomic Energy Agency (IAEA), the nuclear watchdog of the United Nations, said “specific expertise in nuclear physics and nuclear materials science is crucial for reactor operation and fuel cycle management.” The agency advises countries planning to adopt atomic energy as a source of electricity and has on its Web site e-learning modules that showed it could take first-timers at least 10 years to chart out a nuclear power regime. It is unclear how large is the Philippines’ existing pool of nuclear physicists and nuclear materials scientists; and where those involved in building the first of the planned two 620-megawatt reactor units at the Bataan Nuclear Power Plant have gone. The Filipino diaspora -- a boon to an economy that faltered in the 1980s and whose 10-million population continued to boost its current account -- had repercussions. “We have long lost many of our experts in using nuclear energy power generation as we have also concentrated much of our efforts in other applications of nuclear techniques in the last few decades,” Carlos Primo C. David, officer-in-charge at the country’s nuclear regulator Philippine Nuclear Research Institute (PNRI), told BusinessWorld last week. An agency under the Department of Science and Technology, PNRI now has eight nuclear physicists “with varying levels of competency,” he said. “Note that we don’t only need physicists but nuclear engineers, nuclear chemists, etcetera also those that are trained to be nuclear energy regulators,” the PNRI boss said.
Mining, LGU dealings to come under closer scrutiny–Dominguez | BusinessMirror BusinessMirror 1st Dec 2016
The government has its eyes keenly trained on so-called extractive industries, such as mining, and recently ordered the monitoring of their contributions to the nation’s coffers via the electronic receipt and expenditure system, or eSRE. This developed after the Department of Finance (DOF) ordered local government treasurers to include in their financial reports all environment and natural-resource transactions, particularly payments made by mining and allied industries.According to the DOF, local treasurers should report on an annual and quarterly basis the fiscal and financial operations of their respective local government units (LGUs) through the eSRE. Under Department Order (DO) 049-2016, Finance Secretary Carlos G. Dominguez III mandated local treasurers to include in their regular eSRE reports all payments made by extractive industries along with the detailed account of their share from the nation’s wealth and their expenditures using the receipts and collections. Other monetary and nonmonetary benefits received by LGUs from the extractive industries must also be included in their quarterly eSRE reports. Dominguez has directed local treasurers to include in their eSRE reports the following direct and nondirect payments made by the extractive industries to their LGUs, namely, local taxes, fees and other charges; receipts of shares from national wealth in their localities; expenditures of LGUs coming from receipts and collections from the extractive industries and shares from national wealth; and such other monetary and nonmonetary benefits received by LGUs from extractive industries and shares from national wealth.
Duterte reappoints Lopez as DENR secretary philstar.com 30th Nov 2016
President Duterte has reappointed Environment Secretary Gina Lopez and praised her for being strict in implementing mining regulations. The President, however, failed to explain why Lopez’s name was not included in the list of Cabinet reappointments Malacañang had sent to the Commission on Appointments (CA) for confirmation. Lopez was one of 15 Cabinet officials who were not confirmed by the CA before Congress went on recess last month. The absence of Lopez’s name triggered speculations that she is no longer a member of the Cabinet. Duterte, however, confirmed that Lopez is still part of his team. The environment department under Lopez has suspended 10 mining firms and has recommended the suspension of 20 others for failing to pass an environmental audit.
Nov. investment pledges up 97% led by renewable energy -- BoI BusinessWorld 30th Nov 2016
The Board of Investments (BoI) reported that investment pledges for November hit P28.5 billion, up from P14.4 billion a year earlier, on the strength of three big-ticket projects in renewable energy and manufacturing. Trade Secretary and BoI Chairman Ramon M. Lopez told reporters yesterday that the three projects accounted for a significant portion of the 97% growth in investment pledges for the month. He said that the main projects involve solar and hydropower renewable energy. Pledges involving the manufacture of petrochemicals also account for about a quarter of the pledges for the month. According to Executive Order No. 226, pioneer status is given to any firm engaged in the manufacture, processing, or production of goods or raw material that have never been produced here in the Philippines on a commercial scale. Firms with such status are provided with special incentives such as longer exemptions from paying income tax. In the first 11 months of 2016, the power sector had the biggest share of investment pledges, accounting for P150.269 billion. This is followed by pledges in the construction sector which hit P62.273 billion; real estate including the mass housing sub-sector at P48.953 billion, manufacturing at P30.409 billion; and transportation and storage at P15.389 billion. Singapore accounted for the most investments year to date at P13.261 billion. The Netherlands came in second with P10.778 billion, followed by Japan with P6.833 billion, South Korea with P6.423 billion, and the United Kingdom with P2.349 billion. The National Capital Region topped the list of investment destinations with P76.152 billion, while Calabarzon had P76.099 billion.
Duterte identifies 5 policy directions for mining sector Manila Bulletin Business 27th Nov 2016
President Rodrigo Duterte has identified five policy directions for the mining sector, seeking for collective effort among all its stakeholders to help change the perception towards the so- called “spoilers of the environment.” Duterte, in his message delivered by Mines and Geosciences Bureau (MGB) Assistant Director Danilo Uykieng at the 63rd Annual National Mine Safety and Environment Conference (ANMSEC), said the government is serious in having all hands on-board so that all industries can productively contribute in the country’s economic growth. He said that with this as premise, MGB shall pursue five policy directions toward a long-term and stable policy environment that is essential to realize the true potential of the country’s mineral deposits. The first policy has called for minerals and metal-led industrialization initiatives. This supports the stand of Senator Cynthia Villar regarding the need to develop more mineral processing plants in the country so that miners could extract more value from the country’s natural resources at the same time generate more jobs. The second policy is for a strict identification of final land use options of mineral lands.
DOE addresses Mindanao’s higher power rates Manila Bulletin Business 27th Nov 2016
With the grid’s supply source diverting massively from traditionally cheaper hydro, Energy Secretary Alfonso G. Cusi is now sorting out solution to Mindanao’s dilemma over relatively pricier power rates. In his message to the Association of Mindanao Rural Electric Cooperatives (AMRECO), Cusi indicated “we may be facing this time novel issues concerning pricing and competition.” He added that from the years of blackouts that plagued Mindanao, the circumstances had so far changed – that the supply issue now conversely tilts on “excess generation.” For this, the energy chief noted that his department is “looking into the possible implementation of an electricity market in Mindanao.” He previously sounded off to media that he wants this accomplished around June 2017. With teeming supply, industry players in Mindanao have been noting that “pricing war” will ensue – and that the downward pressure on costs will turn out beneficial to consumers. Cusi stressed that the proposed Wholesale Electricity Spot Market (WESM) could “promote competition and provide a level playing field for the stakeholders.” The energy chief opined “this will not only ensure the constant availability of electricity to the consumers, but will also foster a more competitive market that will bring in more investments.” He stressed this is in line with President Rodrigo Duterte’s “twin priorities of fully addressing the power situation, and at the same time, pumping more economic activity and creating more jobs and livelihood.”
Cusi bats for more investments in liquefied natural gas power Philippine Daily Inquirer 25th Nov 2016
The Philippines should orient its efforts toward liquefied natural gas (LNG) as a power source for electricity to promote fuel diversification for energy stability and affordability, according to Energy Secretary Alfonso Cusi said on Friday. “As an emerging LNG market in Asia, my country, the Philippines can take advantage of the current period of oversupply and the relatively low prices of LNG,” Cusi said. To this effect, the Energy chief presented a roadmap for the development of the local LNG sector during the LNG Producer-Consumer Conference 2016 in Japan earlier this week. Currently the Philippines only has the Malampaya gas field in this sector, where 98 percent of its total production is used for power generation supplying fuel to five natural gas plants in Batangas, namely Ilijan, Sta. Rita, San Lorenzo, San Gabriel and Avion with a total installed capacity of 3,211 megawatts (MW) providing the electricity requirement of Luzon and even the Visayas. As the country prepares for the depletion of Malampaya’s supply by mid-2020s, Cusi pointed out natural gas project prospects in the country for Japanese and other international investors to potentially develop. This includes LNG importation, off-grid or missionary islands conversion to natural gas power plants and even non-power applications, such as in transportation.
Duterte vows to abolish ERC ABS-CBN News 24th Nov 2016
President Rodrigo Duterte on Wednesday vowed to abolish the Energy Regulatory Commission (ERC), even as its officials have refused to resign. The president earlier demanded the resignation of ERC officials after getting reports of rampant corruption inside the agency. This came days after the death of Francisco Villa Jr., who chaired the commission's Bids and Awards Committee. "I have directed a comprehensive review of all legal remedies to overhaul and effect fundamental changes in the agency including the officials," Duterte told reporters in a press conference in Davao City shortly after his arrival from the APEC Leaders' Summit in Lima, Peru. "I have received word the members of the body have refused to step down. I demanded that they all resign," Duterte said. ERC commissioner earlier stated that they will not step down from their positions despite demands from the president. "We are one in the decision to stay in the post. Resignation would not be to the best interest of the ERC," ERC Commissioners Alfredo Non, Ina Asirit, and Gloria Victoria Taruc jointly told reporters. Duterte remained firm in his demand. "Kung ayaw ninyo (If you do not want to resign), we will abolish the office. I will not grant any single centavo," he said.
Coal here to stay, says DOE chief Inquirer 17th Nov 2016
Coal-fired power plants will remain a permanent fixture—despite the strong lobby against them by environmentalists and proponents of other energy sources—because these could help the Philippines rapidly meet its growing energy needs cost-efficiently, the Department of Energy said Wednesday. At the same time, however, policy makers recognized the legitimate concerns of coal power’s opponents and vowed to balance the concerns of all stakeholders in the country, according to Energy Secretary Alfonso Cusi. “The signs of the times seem to tell us that coal is here to stay,” he said in a speech delivered at the 2016 Coal Business and Policy Forum in Makati City, even as the energy chief stressed that the implementation of coal energy policy “must be done right” to address the criticism being leveled against it. Data from the Department of Energy showed that coal power provides the single-biggest source of electricity for the country today. As of 2015, 45 percent of the Philippines’ generated electricity came from coal—a sharp rise from the 1-percent share it had when the country first began to use coal as a power source in 1981. “And with new coal-fired power plants in the offing, the figure is expected to increase, or at the very least, remain so for a considerable period,” Cusi said. A key hurdle for the coal power industry, however, is Environment Secretary Gina Lopez, who has voiced her opposition to what she described as “a form of energy that has no future.” Coal power is also being opposed by another major player in the industry, First Gen Corp., which is controlled by the Lopez family from which the environment chief hails. Cusi said he believed, however, that coal has a role to play in the Philippines’ so-called “energy mix,” especially in providing cheap and reliable baseload power amid the country’s steadily growing electricity needs.
Philippines’ first R&D and training facility on smart grid breaks ground in Meralco Manila Bulletin 15th Nov 2016
Meralco recently held the ceremonial groundbreaking for Power Tech- the Philippines’ first innovation, research and development (R&D), and technical training facility featuring the smart grid set up. Meralco’s development of Power Tech is anchored on three objectives: 1) to serve as a facility that will rapidly accelerate competency upgrade of both Meralco engineers and other industry players; 2) to provide a test-bed for Smart Grid and as a testing area for new equipment and devices; and, 3) to drive innovation and R&D in the Philippine power industry through partnerships with the academe, and private and government sector. Housed within the Meralco Compound in Pasig City, Power Techis set to be a 2-storey, green architecture structure occupying a total floor area of more than 3000 sqm.The structure will be operating with solar and wind energy and will also be utilizing natural lighting and ventilation. This will also feature different state-of-the art facilities for its auditorium, training laboratories, test areas and in its innovation center.
2,000 MW power projects get DOE green light philstar.com 14th Nov 2016
The Department of Energy (DOE) has cleared 11 power projects with nearly 2,000 megawatts (MW) in capacity for grid impact studies in October. Latest DOE data showed the 11 projects are seen to generate 1,877.9 MW of power. The GIS is necessary in determining if the electricity to be generated by the power project can be absorbed by the grid. Of the total, three are traditional power plants, namely the 600-MW coal-fired thermal power plant of SMC Global Power Holdings Inc. in Sariaya, Quezon; the 344-MW subcritical coal-fired power plant of Masinloc Power Partners Ltd. in Masinloc, Zambales; and the 64-MW Power Barge 103 of Phinma Energy Corp. in Lapu-lapu City, Cebu. The rest of the developments are renewable energy sources. Five of the eight RE projects are hydropower plants, of which the biggest is the 300-MW Bolusao pumped storage of San Lorenzo Ruiz Samar in Lawaan, Eastern Samar. Two of the RE projects are solar namely the 15-MW Bogo 3 solar power plant of Sun Premier Philippine Corp.in Bogo, Cebu City and the 100-MW solar power plant of Sunpalo Solar Energy Inc. in San Miguel, Leyte. Year-to-date, 78 projects were granted clearance to conduct GIS. In 2015, the DOE has given GIS clearance to 133 projects.
DENR cites Masbate mine as model for rehab, community development BusinessWorld 14th Nov 2016
The Department of Environment and Natural Resources (DENR) is holding up as an model for the mine site rehabilitation process Filminera Resources Corp., a metals miner threatened with suspension after a government crackdown against substandard environmental management practices. “The company did a good job at rehab. And I love the entrepreneurial spirit where the community is making products... I love the attitude of the company -- at the willingness to fix things,” said Environment Secretary Regina Paz L. Lopez in a mobile message over the weekend. She was referring to Filminera’s gold project in Masbate. Asked if she sees Filminera as a possible role model for the development of the mining industry following her visit to the mine on Friday, Ms. Lopez responded positively, on condition that the miner resolves certain “community problems.” “If they play their SDMP funds well then everyone is happy... Now that’s a model. Right now there were rallies there and people are very unhappy. But it can be fixed,” Ms. Lopez added. Earlier, Ms. Lopez said she intends to intervene on the matter of how miners use their social development and management program funds (SDMP) to benefit more people “far beyond their host communities.” The SDMP, which requires miners to set aside the equivalent of at least 1.5% of operating costs, is a comprehensive five-year plan committing the mineral concession holder to the sustained improvement in the living standards of the host and neighboring communities. Filminera was one of the 20 miners whose operations the audit recommended for suspension based on environmental violations and/or unresolved social development issue. The 20 miners and the 10 more suspended prior the launch of the environmental audit on July 8, make up nearly three-quarters of the country’s metals miners. The mines suspended or recommended for suspension make up 55.5% of last year’s Philippine nickel output.
Duterte backs plan to revive nuclear power plant BusinessWorld 12th Nov 2016
President Rodrigo R. Duterte is now backing plans to revive the mothballed Bataan nuclear power plant (BNPP) after initially rejecting the use of nuclear energy in the country, according to Energy Secretary Alfonso G. Cusi. “[President Duterte] has spoken and after he has spoken I talked to him and made clarification and [sought] clearance that I proceed to work for its [BNPP’s] implementation and full operation,” Mr. Cusi said in a speech during the inauguration of two natural gas-fired power plants on Friday in Batangas City. Mr. Duterte had earlier said nuclear energy would not be an option for the country during his term. Proponents of nuclear power previously asked what prompted Mr. Duterte to come up with a firm stand on the matter even after the DoE had publicly endorsed the crafting of a nuclear energy policy. However, the president is known to change his views on issues. For instance, Mr. Duterte earlier this week said the Philippines will ratify the Paris Agreement, after earlier criticizing the commitment made by the Aquino administration to reduce greenhouse gas emissions. Mr. Cusi said he assured the President that there will be safeguards in place to ensure the nuclear power plant will be operated properly. The Energy chief had previously said the plant would cost $1 billion to be repowered. The National Power Corp. placed the plant’s capacity at around 600 megawatts. The DoE-attached agency oversees the upkeep of the plant over the years. On the sidelines of the event, Mr. Cusi told reporters that for now, BNPP’s revival plans would be a state undertaking, although government staff currently do not have the competence to operate the mothballed facility.A state-to-state partnership would be an option, Mr. Cusi added.
Financial Services
Stage set for trading of dollar-priced securities BusinessWorld 3rd Dec 2016
The stage is set for the listing and trading of dollar-denominated securities (DDS), with The Philippine Stock Exchange, Inc. (PSE) having published on its Web site the relevant rules in their final form. In a memorandum issued on Friday, the exchange released the Rules on Dollar Denominated Securities, as approved by the Securities and Exchange Commission (SEC) in a Nov. 10 en banc meeting. “It can provide issuers with dollar-denominated requirements an opportunity to raise capital at the Exchange without incurring foreign exchange risks,” read the rationale of the rules governing the listing, trading and settlement of such securities on the local bourse. “In the same manner, the product can also reduce the currency risk exposure of foreign investors who trade PSE-listed securities. Moreover, DDS offers local investors an alternative investment option for their USD currency holdings.” The PSE had released in March the draft of the rules, which provide for disclosure guidelines and relevant fees as well, in order to solicit comments from the public. The bourse has existing rules for dollar-denominated trading. The framework approved in July 2003, however, provided only a platform for securities simultaneously listed offshore to be quoted and traded in dollars. Under the new framework, the DDS can be issued by listed companies in good standing with the PSE. Prospective issuers, for instance, must have no outstanding penalty or liability to the bourse. Moreover, the prospective issuer must not be the subject of any order of suspension from trading, involuntary delisting proceedings or pending cases, investigation or similar proceeding by the PSE for violation of applicable laws, rules, regulations or orders.
Money laundering amendment targets casinos, developers, traders Philippine Daily Inquirer 1st Dec 2016
Casinos, real estate developers and dealers of high-value items will have to report any cash transaction exceeding P500,000 or $10,000 to the Anti-Money Laundering Council (AMLC) to help stop any illegal fund transfers in the country. That is, if Congress passes a proposed amendment to the Anti-Money Laundering Act (AMLA). The Senate banks, financial and currencies committee will sponsor the amendment on the floor and start debates on it on Monday, committee chair Sen. Francis Escudero said. Escudero has filed his committee report on the bill that seeks to amend the AMLA, or Republic Act no. 9160. Fifteen senators have signed the report. Escudero said they aim to pass the Senate and House versions of the bill by the first quarter of 2017, ahead of the June deadline for the country to be compliant to the reporting requirements of the Financial Action Task Force (FATF), the global antimoney laundering and antiterrorism watchdog. He said the FATF requires casinos to be one of the bodies that report cash transactions to the AMLC. Casinos were left out in the amendments in 2012. Escudero’s committee said the other institutions also being required to report cash transactions were money services; business or money transfer companies; dealers of precious stones, jewels and metals, and real estate developers, brokers and sales agents.
Philippines bank and Bangladesh play blame game over missing millions Dhaka Tribune 30th Nov 2016
Philippines lender RCBC and a Bangladeshi minister traded blame on Tuesday over liability for tens of millions of dollars that were looted from a New York bank and then went missing in Manila after one of the biggest bank frauds ever. Unknown cyber criminals tried to steal nearly $1 billion from Bangladesh Bank in February and successfully syphoned off $81 million via an account at the New York Federal Reserve. That was transferred to four accounts with bogus names at one RCBC branch in Manila before vanishing.
Fintech startup, First Circle, offers collateral-free loans to Philippine SMBs Enterprise Innovation | Asia's Premier Business and Technology Publication 30th Nov 2016
Small and medium businesses (SMBs) in the Philippines now have access to collateral-free financing scheme with the launch of the Philippines-based First Circle, an Irish-led financial technology startup that offers loans to SMBs through its online platform. Access to finance remains a hindrance to the operations of SMBs, which make up 90% of registered businesses in the Philippines.
PH one step closer to membership in China-led AIIB Rappler 30th Nov 2016
MANILA, Philippines – The Senate has adopted on second reading a resolution that would allow the Philippines to join the China-founded Asian Infrastructure Investment Bank (AIIB). On Tuesday, November 29, senators adopted on second reading Senate Resolution No. 241 or the "Resolution Concurring in the Ratification of the Articles of Agreement of the Asian Infrastructure Investment Bank." The resolution needs to secure a two-thirds majority vote on its third and final reading to be effective. This is expected to happen before Congress adjourns for the holidays.
BSP to initiate talks on Asean banking integration The Manila Times 25th Nov 2016
The Bangko Sentral ng Pilipinas (BSP) will initiate talks with the central banks of Thailand and Indonesia on bilateral agreements allowing Qualified Asean Banks (QAB) to operate subsidiaries in each other’s markets. “I am pleased to report that we are about to initiate formal discussions with the Bank of Thailand and with the OJK of Indonesia under the ABIF guidelines,” BSP Governor Amando Tetangco Jr. said, referring to Otoritas Jasa Keuangan, the Indonesian Financial Services Authority. He was speaking before a general assembly of the Bankers Association of the Philippines (BAP) earlier this week.
Duterte tells oligarchs: I owe you nothing, as he opens Philippines to new corporates CNBC 23rd Nov 2016
Philippines President Rodrigo Duterte vowed on Wednesday to open up the economy to new corporations to halt graft and protectionism, telling the country's oligarchs he owed them no favors and to be content with their billions. The outspoken, populist leader said it was high time to change regulations and liberalize sectors like energy, power and telecoms to make the country more competitive, and give Filipinos better services and a share of the wealth.
Foreign banks raise Philippine economic growth forecasts philstar.com 21st Nov 2016
MANILA, Philippines – Foreign investment banks HSBC, Nomura, and Barclays have raised their economic growth forecasts for the Philippines after a strong performance in the third quarter. Joseph Incalcaterra, economist at British banking giant HSBC, said the bank raised its gross domestic product (GDP) growth target for the Philippines to 6.8 percent from 6.5 percent this year.
This Startup Is Aiming To Build The Largest Digital Payment Network In The Philippines Enterprise Innovation | Asia's Premier Business and Technology Publication 21st Nov 2016
Financial inclusion is a broad and somewhat vague term, but it’s becoming an increasingly popular one among both tech and development circles. The World Bank Group describes financial inclusion as “a key enabler to reduce extreme poverty and boost shared prosperity.” The U.N. has also identified financial inclusion as essential to achieving several of Sustainable Development Goals, according to the World Bank Group. Forty percent of adults globally struggle to meet their financial needs and maintain economic stability due to lack of access to financial services, according to the United Nations’ Special Advocate for Inclusive Finance for Development (UNSGSA).
SEC issues listing, trading rules for dollar-priced securities BusinessWorld 15th Nov 2016
The Securities and Exchange Commission (SEC) has approved the framework for the listing and trading of dollar-denominated securities (DDS), giving an alternative fundraising venue to companies and another investment option to the public. In a press statement, the regulator announced the approval during a Nov. 10 en banc meeting of the rules governing the listing, trading and settlement of securities priced in US dollars on the Philippine Stock Exchange (PSE). “The introduction of DDS aims to provide issuers with dollar-denominated requirements an opportunity to raise capital without incurring foreign exchange risks,” the regulator noted in the statement distributed to reporters on Monday. “The DDS can also reduce the currency risk exposure of foreign investors who trade PSE-listed securities. Moreover, DDS offers local investors an alternative investment option for their US Dollar currency holdings.” The PSE released the draft of the rules, which spell out disclosure guidelines and relevant fees, in March to solicit comments from the public. The bourse has existing rules for dollar-denominated trading. The framework approved in July 2003, however, provided only a platform for securities simultaneously listed offshore to be quoted and traded in dollars. Under the recently approved rules, DDS can be issued by listed companies in good standing with the PSE.
Food & Agriculture
Philippines Hopes to Limit Rice Imports to 500,000 T in 2017 Jakarta Globe 23rd Nov 2016
Manila. The Philippines hopes to limit rice imports to 500,000 tonnes next year, its agriculture minister said on Tuesday (22/11), as the government of President Rodrigo Duterte aims to be self-sufficient in rice production by 2020. Agriculture Secretary Emmanuel Pinol said he hoped the Philippines, one of the world's biggest rice importers, would not have to buy more than 500,000 tons of the grain next year as the prospects for farm output, including rice and fisheries, looked favorable.
DA cancels import permits for meat products PhilStar 22nd Nov 2016
MANILA, Philippines — Amid the holiday rush and the expected demand surge in food products, the Department of Agriculture (DA) has ordered the cancellation of import permits of all agricultural products, particularly meat, in its bid to address smuggling. In a press briefing Tuesday, Agriculture Secretary Emmanuel Piñol said the department is undertaking a total recall and cancellation of all issued permits following the rampant cases of smuggled agricultural products. "I issued instructions for an immediate cancellation of all import permits of all agricultural products because of persistent reports of recycling and technical smuggling. And this usually happens whenever Christmas season comes because of the great demand for meat and chicken," he said.
Russia commits to buy $2.5-B worth PH agri products Update Philippines 22nd Nov 2016
During the bilateral meeting between President Rodrigo Duterte and Russia President Vladimir Putin at the sidelines of APEC Leaders’ Meeting, Russia committed to buy USD2.5 billion worth of agricultural products from the Philippines. According to report by Inquirer.net, Trade Secretary Ramon Lopez noted that the Russian side immediately agreed to the proposed importation of Philippine fruit and other agricultural products to Russia in the next 12 months. “Their immediate estimate is $2.5 billion. That’s a number they (Russian side) quoted,” Lopez, as quoted by Inquirer, told Filipino reporters covering the said international leaders’ meeting in Peru.
Agri dep’t food import inspections to be random BusinessWorld 2nd Dec 2016
The Department of Agriculture (DA) said it will have to resort to random checks of imported foods instead of plans for a total inspection regime because of cold storage and personnel constraints at ports of entry. Agriculture Secretary Emmanuel F. Piñol said apart from personnel issues, that the lack of cold storage at Customs facilities limits the ability to conduct total inspection because some shipments would spoil. “We cannot follow all containers because we lack the personnel. So what will happen is we will conduct random checks,” Mr. Piñol told reporters at the Department of Agriculture office on Thursday. The Secretary earlier announced plans to implement Republic Act 10611, or the Food Safety Act of 2013, which requires that “imported foods shall undergo cargo inspection and clearance procedures by the DA and the DoH (Department of Health) at the first port of entry to determine compliance with national regulations.” He added that Customs Commissioner Nicanor E. Faeldon has agreed with him to implement the order. In other developments, Mr. Piñol confirmed that he has allowed members of the Philippine Association of Meat Processors, Inc. and other established regular importers with clean records to use a fast lane to expedite the validation of their SPS permits. “We’ll still go through the usual procedures but the institutional importers should be given priority if they have no record of smuggling,” said Mr. Piñol. The DA last week issued an order that recalled all outstanding SPS permits in an anti-smuggling measure. The agency has issued some 3,000 such permits in the past. It said that as of Nov. 25, it has validated some 1,700 such documents.
BusinessWorld | Meat processor import permits to be expedited BusinessWorld 1st Dec 2016
The Department of Agriculture (DA) said it will facilitate the revalidation process for food import permits held by major meat processors with clean records. Secretary Emmanuel F. Piñol “is recognizing that the PAMPI (Philippine Association of Meat Processors, Inc.) members have no reason to shortcut the import process. We have explained our position that we protect our brands,” said the organization’s Executive Director Francisco J. Buencamino in an interview with BusinessWorld late Tuesday. Mr. Buencamino added that the organization welcomes the DA’s decision to cancel all food import permits as an anti-smuggling measure. PAMPI had a meeting with Mr. Piñol during which the secretary presented to them evidence of widespread smuggling in food imports. Mr. Buencamino said violators should be penalized under the new law on smuggling, Republic Act 10845 “An Act Defining Large-Scale Agricultural Smuggling as Economic Sabotage, Prescribing Penalties Therefor and for Other Purposes.” Signed on May 23, RA 10845 classifies economic sabotage as “any act or activity which undermines, weakens or renders into disrepute the economic system or viability of the country or tends to bring out such effects and shall include, among others, price manipulation to the prejudice of the public especially in the sale of basic necessities and prime commodities.” Mr. Piñol said the DA has the authority under Republic Act 10611 or the Food Safety Act of 2013 which states that “imported foods shall undergo cargo inspection and clearance procedures by the DA and the DoH (Department of Health) at the first port of entry to determine compliance with national regulations.” The law provides that the inspection by the two departments “shall always take place prior to assessment for tariff and other charges by the Bureau of Customs.”
Sustaining agriculture’s growth BusinessMirror 28th Nov 2016
During the third quarter of this year, our economy proved again to be Asia’ fastest-growing at 7.1 percent—higher than China’s 6.7 percent, Vietnam’s 6.4 percent, Indonesia’s 5.0 percent and Malaysia’s 4.3 percent. This strong performance was mostly propped by sustained public spending in infrastructure and private construction, as the services and industry sectors continued their rise—6.9 percent and 8.6 percent, respectively. However, what is most noteworthy of this recent stellar economic performance is that our agricultural sector grew by close to 3 percent, finally reversing a decline that lasted five consecutive quarters. At current prices, agriculture’s gross value amounted to P360.9 billion, up 7.33 percent from last year. Recent Philippine Statistics Authority (PSA) data shows higher output in the crops, livestock and poultry subsectors, marking a recovery from the damage wrought by El Niño and typhoons in past years. Hopefully, such an upward trend continues, considering improved Philippine-China relations have reopened the big Chinese market, particularly for Philippine bananas and pineapple. Shortages in key agricultural products, however, looms for 2017, as the Department of Agriculture (DA) recently cancelled all import permits for meat and plant products—except for rice and corn—to curb rampant technical smuggling. It appears that even with the enactment of the Customs Modernization and Tariff Act, much more political will needs to be mustered to finally weed out agricultural smugglers and prevent them for wreaking any more havoc on our economy. Hopefully, the DA makes good on its assurances that legitimate importers will be able to get their new import permits quickly—and prosecute those engaged in illegitimate trade. Any delay not only dampens the agricultural sector’s growth; it will also lengthen the opportunity for corruption to once again rear its head.
Filipino firms invited to invest in Myanmar’s agricultural sector Manila Bulletin Business 26th Nov 2016
Filipino firms were invited by a Myanmar agriculture magnate to explore potential investment opportunities in the formerly centrally planned, military-ruled economy. Myanmar’s Yoma Strategic Holdings Co. Ltd (YSHCL) Agriculture Group Chairman Tin Htut Oo assured Filipino companies that starting next year, Myanmar will be a highly favorable investment destination in Asia with its new aggressive market-oriented foreign policy. A new law in Myanmar now allows companies to be 100-percent foreign owned
DA to close meat smuggling loophole by raising offal tariff BusinessWorld 24th Nov 2016
The Department of Agriculture (DA) said it will seek to increase tariffs on offal imports in order to head off a commonly-used avenue to misdeclare imports of meat products. “I have decided to conduct a thorough review with the intention of consulting our legal experts on whether the department can cancel the special 5% tariff on offal and impose a uniform tariff for everything,” said Agriculture Secretary Emmanuel F. Piñol in a briefing on Wednesday, adding that he intends to impose a 30% tariff for all meat products. He added that he will establish a technical working group “immediately” to prepare such a proposal and make a recommendation to the Tariff Commission. Mr. Piñol cited a report of the United Nations which claimed “incontrovertible” proof of smuggling that exploits the low tariff levied on offal to engage in technical smuggling of non-offal products. “Meat is commonly declared as offal when it reaches the Philippines,” Mr. Piñol added. Offal is the internal body parts of butchered animals. Last year, the Philippines imported a total of 122.51 million kilos of offal, with 108.86 million kilos from pork. Hog growers have been lobbying for higher tariffs on offal, skin, rind, fat, and mechanically deboned meat, which they claim provide opportunities to misdeclare meat because of the 5% to 10% rate these categories pay. Their proposal is to raise tariffs to 30%-40%.
Russia to buy $2.5B worth of PH fruits, vegetables Philippine Daily Inquirer 22nd Nov 2016
Russia committed to buy $2.5 billion worth of Philippine fruits, grains or vegetables during Saturday’s bilateral discussions between President Duterte and President Vladimir Putin, officials said on Sunday. Trade Secretary Ramon Lopez said the Russian side had agreed “immediately” to a proposal for the importation of Philippine fruit and other agricultural products in the next 12 months. The estimate dwarfs the $46 million worth of exports the Philippines currently ships to Russia every year, he said. He said Putin also offered to help the Philippines through investments in energy and infrastructure. The Philippines may also expect more tourists from Russia, he added. “Of course, the other side of this is their commitment to work with us on counterterrorism, counterdrug [operations], law enforcement, education, finance,” Lopez said. He said Putin and Mr. Duterte established “very good rapport” in their first bilateral meeting on Saturday on the sidelines of the Apec summit. On the Philippines’ bilateral ties with Russia, Lopez said: “I mean there’s nowhere to go but up because it’s really a relationship that offers a lot of opportunities because hardly anything happens when it comes to trade and investment with Russia.”
Paddy rice output could be lowest in three years BusinessWorld 17th Nov 2016
The government said on Wednesday that it expects the country’s paddy rice output to hit 17.91 million metric tons (MT) in 2016 -- the lowest in three years and below a July forecast of 18.135 million MT -- due to crop losses from an El Niño dry spell that began in mid-2015 and typhoons. The Philippines, one of the world’s biggest rice importers, could buy another 250,000 MT of rice in addition to the 250,000 MT purchased recently from Vietnam and Thailand, if it sees a need to boost state buffer stocks. The latest forecast from the Philippine Statistics Authority for output this year -- as given in the agency’s October Rice And Corn Situation and Outlook Report -- is 1.3% lower than a 2015 harvest of 18.15 million MT, which followed record production of 18.97 million MT in 2014. Unmilled rice output this quarter is forecast to edge up 0.33% from last year to 7.3 million MT, following a 16.35% annual increase in the third quarter. The same report gave a 4.42 million MT projection for the first quarter of 2017, 12.27% up from the 3.93 million MT actually produced in this year’s comparable three months. The forecast, is based on “farmers’ planting intentions” and will ride on a 7.53% expansion in harvest area and use of high-yielding varieties. Production of corn, the country’s second staple, is expected to total 7.26 million MT this year, 3.39% less than 2015’s 7.52 million MT. Next quarter could see an 18.23% year-on-year hike to 2.27 million MT from 1.92 million MT. -- main report by Reuters
Surprise farm growth boosts GDP hopes BusinessWorld 16th Nov 2016
Prospects for third-quarter economic growth -- scheduled to be reported tomorrow -- yesterday got a shot in the arm as the government reported a surprise expansion of agricultural production in those three months, fueled particularly by three out of four farm subsectors. Preliminary data released by the Philippine Statistics Authority showed value of agricultural production increasing by 2.98% annually last quarter against expectations by both state and private-sector economists of flat performance to a slight contraction that was nevertheless seen to be “much better than the second quarter.” Output of agriculture -- which accounts for a third of the country’s jobs but contributes only a 10th to gross domestic product (GDP) -- crawled by a nearly flat upwardly revised 0.06% in terms of value in the third quarter last year as El Niño started to make itself felt. Subsequent quarters saw year-on-year contractions in production, but the fall eased to 2.13% in the second quarter from January-March’s 4.35% as El Niño waned. Socioeconomic Planning Secretary Ernesto M. Pernia -- who late last week estimated 6.3-7.3% third-quarter GDP growth partly on expectations of improved, though flat, farm performance -- told reporters yesterday that the surprise farm expansion could have helped fuel GDP to surpass its 7% second-quarter clip.
PHL, Malaysia eye cooperation in agribusiness Business Mirror 14th Nov 2016
The Philippines and Malaysia are gearing up for closer economic cooperation, hinting at significant joint projects in the area of agribusiness, specifically in palm oil and natural rubber. Trade Secretary Ramon M. Lopez said in a news briefing in Kuala Lumpur that meetings with his counterpart, Malaysian Minister of International Trade and Industry Datuk Seri Mustapa Mohamed, and the Malaysian Philippines Business Council have led to common interests being identified. “[The meetings] show that these companies are willing to put a stake in the current administration in terms of supporting the development goals in infrastructure and agribusiness,” Lopez said. “In agribusiness, there’s a potential palm-oil project, wherein the harvest and the output will go back to Malaysia as exports and for further processing into palm-oil areas in Mindanao and Palawan,” he added. Lopez said the Malaysian proponent of the project is keen on tapping 200 to 300 hectares of land for the palm-oil plantation. He added that the project is purely a private-sector undertaking. Aside from agribusiness, two Malaysian companies are also keen on building a $1-billion light-rail transit project to run from Diliman, Quezon City, to Quiapo, Manila.
Health & Life Sciences
SC urged: Lift TRO on RH law philstar.com 1st Dec 2016
Advocates of Republic Act 10354 or the Reproductive Health Law pressed yesterday for the resolution of their petitions to lift the temporary restraining order (TRO) that they said has deprived Filipino families of government-issued contraceptives. In a forum yesterday, former presidential assistant for social development Benjamin de Leon stressed that the magistrates of the Supreme Court (SC) “are not scientists” to decide if the contraceptives that the government would provide were abortifacients. “The Supreme Court justices are not scientists… Medical evidence do not lie to the SC,” De Leon said. He said the Food and Drug Administration (FDA) should determine if the contraceptives were safe to use. He, however, said that the government procured the contraceptives prior to the TRO on the recommendation of respected health agencies. “The World Health Organization (WHO) and other organizations have recommended that these [contraceptives] have been used by women because they were safe,” he said. The high court issued a TRO in June last year prohibiting the Department of Health (DOH) from “procuring, selling, distributing, dispensing or administering, advertising and promoting the hormonal contraceptive Implanon and Implanon NXT.” The contraceptive implant can prevent pregnancies up to three years. The SC also stopped the FDA from granting pending applications for reproductive products, including contraceptives.
ILO: Safety and health culture crucial in the Philippines News 30th Nov 2016
The ILO highlights the need for a safety and health culture especially among young workers in the Philippines to prevent workplace accidents, injuries and illnesses. MANILA – Despite economic progress, the Philippines faces the challenge of young people in search for decent jobs. Skills mismatch coupled with limited awareness of labour rights, often lead young people to create or accept whatever work is available. They turn to low pay, low productive jobs where unsafe and unhealthy working conditions prevail. These workplace safety and health challenges were highlighted at the 15th National Occupational Safety and Health Congress held on 17-18 November in Quezon City. “Despite the progress made in working towards compliance of all establishments especially for the formal sector, there remains much to be done for the vulnerable workers in highly hazardous industries in the informal sector,” said Undersecretary Ciriaco Lagunzad III of the Department of Labor and Employment in his keynote message.
250 nurses from Philippines to be placed in nursing homes in north The Irish News 30th Nov 2016
MORE than 250 nurses from the Philippines are set to start work in nursing homes across Northern Ireland in the coming months as part of an attempt to plug a staff shortage. Restrictions were placed on the recruitment of nurses to the UK from abroad almost a decade ago, but were eased amidst growing vacancies last year. Rutledge Recruitment recently held assessments and interviews in Manila, the capital of the Philippines, over the course of a week to select the nursing home staff. They are to undergo exams and English language testing, and must receive visa clearance from the Home Office before moving. They will also face further assessment of their nursing skills in an exam after their arrival in Northern Ireland.
HIV in Philippines now a ‘youth epidemic’ philstar.com 30th Nov 2016
The National Youth Commission (NYC) expressed concern yesterday over the rising number of young Filipinos testing positive for human immunodeficiency virus (HIV), which it described as a worsening “youth epidemic” in the country. “The NYC is extremely alarmed by the unprecedented spike in HIV infection among our youth. HIV/AIDS is one of the most urgent concerns facing the Filipino youth today. Our young people are at risk and vulnerable,” chair Aiza Seguerra said. “The HIV epidemic in our country has a new face and it is the face of a young person,” the NYC chief added. Citing official statistics, the youth commission said 62 percent of new HIV cases in the country this year was among young people between 15 and 24 years old. The Department of Health (DOH) projects that more than 55,000 Filipinos will get infected with HIV this year.
Rody to inaugurate ‘mega’ drug rehab center in Nueva Ecija philstar.com 29th Nov 2016
President Duterte will inaugurate today the “mega” drug rehabilitation and treatment center in Nueva Ecija, in line with government efforts to solve the country’s narcotics problem. At the same time, the provincial government of Pangasinan is about to accept a donation of a two-hectare lot in Burgos town for the building of another drug rehabilitation center. Department of Health (DOH) spokesman Eric Tayag said the 10,000-bed facility in Nueva Ecija would have some 2,000 drug dependents as its first batch of patients. “The patients are actually victims of the illegal drug trade, so we want to ensure that they are provided adequate and compassionate services for rehabilitation,” Health Secretary Paulyn Ubial said. The drug facility is located at Fort Magsaysay, the country’s largest military camp. Ubial said the center had initially hired about 1,000 personnel. The government is planning to build three more drug treatment and rehabilitation facilities in various parts of the country.
Govt launches new package for infants The Standard 26th Nov 2016
The Department of Health and the Philippine Health Insurance Corp. launched Friday the benefit packages for premature and small newborns to treat the leading cause of death among newborn babies worldwide. Health Secretary Paulyn Jean Rosell-Ubial said the launch of this innovative benefit package would enable families to avail themselves of the necessary care for babies suffering from preterm and low birth weight complications. By year end, she said the PhilHealth benefit package for premature and small babies could be availed of in selected contracted government and private tertiary health facilities by all PhilHealth members. She said the package covered a broad range of interventions from management of preterm labor to addressing severe complications of prematurity and low birth weight. Examples of these include giving antenatal corticosteroids for pregnant women at risk of giving birth to premature baby, incentive for maternal transfer to the nearest referral facility while the baby is still inside, Unang Yakap at birth, Kangaroo Mother Care, neonatal intensive care and breastfeeding support. PhilHealth president Ramon Aristoza said: “This is a landmark benefit for PhilHealth [which] will address the problem of prematurity and low birth weight from the primary care level to the tertiary level.” The benefit packages, designed with the support of the Unicef, will potentially reach 300,000 premature and small newborns every year.
The growing health industry in PHL Rappler 24th Nov 2016
IT’S been almost two decades now since the health and wellness industry in the country and in other parts of Asia started to flourish. Since then a lot of people became more concerned about their well-being, and at the same time more companies bank on health and wellness to gain more following. Over the years, the health and wellness industry grew a lot stronger, better and more profitable. According to Euromonitor International, the industry has maintained a positive development in 2015 and it is expected to continue. The report says the growth was driven by the increasing health-consciousness among consumers, “a trend that was in turn supported by aggressive education campaigns run by the Department of Health.” The year-round campaign of the Department of Health against dengue, malnutrition, smoking, rabies, among others, has contributed a lot to the better understanding of good health and well-being among Filipinos.
Trade dep’t plans shipbuilding, pharmaceuticals programs BusinessWorld 22nd Nov 2016
On the part of pharmaceuticals, the trade official cited the high cost of medicine in the Philippines as the key problem which the envisioned manufacturing program hopes to address. “So far, the policy mechanism by which we have been addressing the high cost of medicine has been through the parallel importation,” he said, referring to the purchase of legitimate products from abroad without a need to seek permission of intellectual property rights-holders concerned. “Ngayon gusto natin lagyan din ng (now we want to add) another component through domestic manufacturing. Kaya we’re looking at this para tignan kung may possibility na ma-develop natin (That’s why we’re looking at the possibility of producing these drugs locally).”
DOH warns against violations of the Graphic Health Warning Law Malaysia Sun 22nd Nov 2016
The Department of Health (DOH) reiterated its call to manufacturers and retailers of tobacco products to follow the Graphic Health Warning's (GHW) Law or face the consequences. The law is now on its full implementation and monitoring teams are now being formed in the National Capital Region (NCR) for deployment. "We already gained so much from our serious efforts to control tobacco use in the country. With the Sin Tax and the GHW laws, we believe that many Filipinos will hesitate if not stop smoking altogether," Health Secretary Paulyn Jean B. Rosell-Ubial earlier said. The Health Secretary cited Administrative Order No. 2014-0037 as a clear basis of the date of implementation requiring "graphic health warnings on cigarette packages and other tobacco product packages one (1) year after the issuance of the templates by the Department of Health." The templates was issued last November 2015.
DOH: No mass retrenchment of health workers in 2017 Rappler 22nd Nov 2016
The Department of Health (DOH) on Friday, November 18, addressed lawmakers' concerns regarding the feared "mass retrenchment" of health workers, especially nurses, in 2017. The health department said while its deployment program for doctors, nurses, midwives, dentists, and medical technologists is "generally successful," it is still just a "short-term, stopgap measure" to address the country's health workforce problems. Senate Minority Leader Ralph Recto had raised the alarm over the DOH's proposed 2017 budget, which will lead to a "drastic" downsizing of health personnel under the Rural Health Practice Program. He suggested ways for Congress to intervene in the issue. On Friday, Health Secretary Paulyn Ubial used the Nurses Deployment Program to illustrate "the whole picture of the current situation." After all, many nurses in the country remain unemployed or underemployed.
DOH gets highest ever budget, bigger than defense for the first time InterAksyon 22nd Nov 2016
MANILA, Philippines -- The proposed budget of the Department of Health in 2017 is the highest allocation ever for the agency, and for the first time, more than that of the Department of National Defense. Health Secretary Paulyn Ubial reported this Tuesday at the second day of the inaugural National Family Planning Conference at Novotel Manila Araneta Center in Quezon City. Ubial said she had been at the Senate from 9 a.m. on Monday to midnight Tuesday defending her agency’s proposed budget, the third largest after that of the Departments of Education and of Public Works and Highways. Historically, she said, the DOH has been sixth or seventh priority in terms of allocation. "Pwede niyo nang isulat 'yan sa history books (You can now write that in the history books)," she said. Ubial added that the proposed budget was only P144.5 billion when it reached the House of Representatives, but the chamber increased it to P146 billion before sending it to the Senate.
Philippines DOH Confirms, A 16-Year-Old Pregnant Woman Has Zika Virus iTech Post 22nd Nov 2016
The Philippines Department of Health (DOH) on Wednesday confirmed that there are now two cases of pregnant women with Zika virus all over the country. The first case was confirmed last September while the second case is a pregnant 16-year-old girl from Las Piñas City. The confirmation regarding the news was made by the Philippine DOH spokesperson Dr. Eric Tayag in his Twitter account, citing that “Dr. Pau (Health Secretary Dr. Paulyn Ubial) confirms second pregnant with Zika, 16-year-old from Las Piñas City.”
DOH confirms 10 new Zika cases CNN 15th Nov 2016
Health officials on Tuesday confirmed 10 new cases of the Zika virus, bringing the total number of cases nationwide to 33. The patients include: The DOH said it is still confirming if the female patients are pregnant. The Zika virus, primarily transmitted through a bite from dengue-carrying Aedes Aegypti mosquitoes, is linked to severe brain and other neurological defects among babies in the womb. The virus was declared a global health emergency by the World Health Organization because of its links to microcephaly. Microcephaly is a rare condition where a baby is born with a small head and an underdeveloped brain. The virus can also be transmitted sexually, which is why the DOH also reminds pregnant women, their partners and others who plan for pregnancy to practice safe sex to avoid infection.
ICT
PLDT allocates P6.7B for undersea cable to US Inquirer 2nd Dec 2016
Telco giant PLDT Inc. is setting aside $136 million (P6.7 billion) to complete a new undersea cable to the United States to meet growing demand for international bandwidth. PLDT chair and CEO Manuel V. Pangilinan told reporters the company recently approved the investment, which would see the cable facility to the United States, via Japan, being finished in three years. He said the amount was PLDT’s share in an international consortium building the cable facility. This will serve the internet needs of the group’s mobile customers as well as its growing home and enterprise clients.
Telecommunications Commission’s next target: Cheaper internet rates Update Philippines 1st Dec 2016
The National Telecommunications Commission (NTC) is looking at slashing the rate of short message service (SMS) and Internet cost next following the decision of Globe Telecom Incorporated and PLDT Incorporated to reduce their interconnection charges for voice calls. NTC Commissioner Gamaliel Cordoba said lowering voice call rates is just the first step of a string of reforms eyed by the regulatory body to give subscribers an efficient way of communication at the lowest possible rates. “This is just the first step. It wouldn’t stop with voice. It will continue with text, Internet. We will lower the prices,” said Cordoba after Globe and PLDT agreed to cut down interconnection charges by Jan. 1, 2017 through the signing of a Memorandum of Understanding (MoU) on Nov. 28.
Philippines government launches electronic site for freedom of information MIS Asia 30th Nov 2016
Public can now access information from 15 government agencies The Philippines government, Malacañang, has launched the electronic site for freedom of information (eFOI) last Friday (25 November 2016). The public now have access to information they may need from 15 government agencies, The Philippine Star said in a report. The portal allows people to look into the transactions of the 15 agencies that are participating in the beta stage of eFOI, according to Kris Ablan, Assistant Secretary for Policy and Legislative Affairs.
Govt not likely to compete with existing telcos | BusinessMirror Business Mirror 30th Nov 2016
IT doesn’t matter what option the government takes, what matters most is that the government invests in a network that will complement the existing infrastructure solely built by the private sector. National Telecommunications Commission (NTC) Deputy Commissioner Edgardo V. Cabarios said the government is currently discussing which of the three options for the National Broadband Plan will be adopted, but it is poised to opt for the second option, which is deemed as the most beneficial. “There are three options. The first option will cost the government P20 billion to P30 billion. The second option is where the government spends around P80 billion to P100 billion. Third option, which might not be the best option, is to build a separate network directly competing with the private sector,” he said in an interview.
PLDT, Globe cut interconnection charges philstar.com 29th Nov 2016
MANILA, Philippines - Telecommunication providers PLDT Inc. and Globe Telecom Inc. have agreed to lower interconnection charges starting Jan. 1, 2017 in a bid to reduce the rates of mobile and fixed line calls in the country. Both companies yesterday signed a memorandum of understanding with the Department of Information and Communications Technology (DICT) to decrease interconnection charges to P2.50 per minute. Currently, the charges for mobile-to-mobile calls across operators, as well as landline-to-mobile voice calls, cost P4 per minute, while mobile-to-landline voice calls reach P3 per minute.
Entrepreneurs urged: Embrace e-commerce Cebu Daily News 27th Nov 2016
Entrepreneurs are encouraged to take advantage of the country’s growing internet population and put up online platforms of their operations to scale up their businesses. Ma. Elena Arbon, Cebu provincial director of the Department of Trade and Industry (DTI), said they are slowly introducing micro, small, and medium-sized enterprises (MSME) to electronic commerce or e-commerce to help them remain competitive amid a globalized business environment. “We hope our MSMEs that are ready for it would really go into it. One example is our exporters. E-commerce is the way of the world,” she told Cebu Daily News.
PH to launch open data website on Nov. 25 cnn 17th Nov 2016
The government is relaunching a website meant to contain all public government information from offices under the Executive Department. The website, called Open Data Philippines (data.gov.ph), goes online on Nov. 25. Presidential Communications Secretary Martin Andanar said on Wednesday, this is in line with the implementation of President Rodrigo Duterte's Executive Order on the Freedom of Information (FOI). The website is envisioned to be a central source for all government documents and information. Once it is launched, citizens will be able to request data, receive updates on their requests and gain access to datasets and documents from the government.
Philippines targets spectrum auction by mid-2017 for new 3rd entrant Mobile World Live 14th Nov 2016
The Philippines’ telecoms regulator aims to sell unused and unassigned spectrum by the middle of next year in an auction open only to new mobile players. The National Telecommunications Commission (NTC) will discuss the terms of the auction with the Department of Information and Communications Technology (DICT), but noted the available spectrum will be sold in one block. NTC commissioner Gamaliel Cordoba said there is interest in launching a third mobile network in the country from at least two local companies – Converge ICT and NOW Telecom, BusinessWeek reported. The newspapers quoted him as saying: “We plan to auction it as one whole [because] if you bid it out piecemeal the one who will get it will also not be able to compete… our idea is one group should be able to get it to enable it to become a third player.”
PCC: Make policy changes to open telco, energy markets Rappler 1st Dec 2016
There is no need to amend the 1987 Philippine Constitution to liberalize the country's telecommunications and energy sectors and allow foreign players to operate as public utilities, said the Philippine Competition Commission (PCC). PCC Commissioner Johannes Benjamin Bernabe said all that Congress has to do is to prioritize and pass amendments to the 80-year-old Commonwealth Act No. 146, also known as the Public Service Law. Bernabe's remarks came after President Rodrigo Duterte said last Wednesday, November 23, that foreign players should enter the telecoms and energy sectors. Under the 1987 Philippine Constitution, only companies owned at least 60% by Philippine nationals or corporations may operate as a public utility. But the definition of a "public utility" under the Public Service Law is not clear, according to Bernabe. "It enumerates so many activities – ice plants, marine railways, shipyard. It hasn't really been comprehensively reviewed and revised since the 1930s," the PCC commissioner told reporters in a media seminar in Tagaytay City on Sunday, November 27. "If we revise that 1930s legislation and limit, then we are effectively limiting the Constitution," he added, saying "telecommunications should be excluded from the 'public utility' definition." The country's telecommunications industry is being dominated by two players: PLDT Incorporated and Globe Telecom Incorporated. According to the PCC's Bernabe, even the two telco giants think the Public Service Law must be amended. Bernabe said he is optimistic that the amendments to the Public Service Law will be approved by next year, given Duterte's stance to liberalize the telco and energy markets.
NTC eyeing to cut text, Internet rates–Cordoba BusinessMirror 1st Dec 2016
The National Telecommunications Commission (NTC) is looking at slashing the rate of short message service (SMS) and Internet cost next, following the decision of Globe Telecom Inc. and PLDT Inc. to reduce their interconnection charges for voice calls. According to NTC Commissioner Gamaliel Cordoba, lowering voice call rates is just the first step of a string of reforms eyed by the regulatory body to give subscribers an efficient way of communication at the lowest possible rates. “This is just the first step. It wouldn’t stop with voice. It will continue with text, Internet. We will lower the prices,” Cordoba said, after Globe and PLDT agreed to cut down interconnection charges by January 1, 2017, through the signing of a memorandum of understanding (MOU) on November 28. Cordoba said affording the public a cheap, but high-quality way of communication is the thrust of the administration of President Duterte, noting that 50 percent of the market still relies on conventional calls. The NTC recently issued Memorandum Circular (MC) 09-11-2016 on Interconnection Charge for Voice Service, which directs that interconnection rates among telcos’ voice services shall no longer be higher than P2.50 per minute from the previous P4 per minute charge. The interconnection charges are also subject to an annual review by the NTC.
National consensus needed to roll out of broadband infrastructure BusinessMirror 16th Nov 2016
PLDT Inc., the country’s leading telecommunications and digital-services provider, is calling for the harmonization of national policies and local-government regulations to speed up the deployment of broadband infrastructure and support the vision to transform the Philippines into a digital nation. Echoing an industry-supported resolution, PLDT, in a statement, suggested a standard permit system be set up to minimize bureaucratic delays and strengthen stakeholder support for the rollout of network infrastructure to more areas in the country. In a speech delivered at a recent summit hosted by the Department of Information and Communications Technology (DICT) for government units and information and communications technology players, PLDT and Smart Communications Senior Vice President for Network Services Mario G. Tamayo presented current challenges in the rollout of wired broadband infrastructure. Tamayo said there are currently no standard fees in applying for permits. Particularly at the level of barangays and municipalities, telcos face different sets of permit fees and processing timelines. Tamayo also said the PLDT has to deal with widespread cases of cable theft and fiber breaks due to digging activities for national and local public works. He reported these third-party causes account for about 80 percent of service interruptions for the country’s largest telecoms provider. In anticipation of the continued growth of data traffic and digital services in the country, PLDT plans to increase the capacity of its data infrastructure by ten times come 2020. For 2016 alone, PLDT has allocated P48-billion capital expenditure to fortify and expand its fixed and wireless networks, including the utilization of its recently acquired 700-megahertz spectrum frequency.
Infrastructure
Poor infra weighs on PHL enabling trade’ ranking BusinessWorld 2nd Dec 2016
The Philippines fell one notch in a global ranking of how economies enable the flow of goods, dragged down by low scores in infrastructure and operating environment. According to the Global Enabling Trade Report 2016, the Philippines placed 82nd out of 136 countries, scoring 4.1 on a 1-7 scale, with 7 considered the highest. The country was 81st in the recalculated 2014 ranking. According to the report, the Enabling Trade Index (ETI) assesses the performance of over a hundred economies based on four criteria: market access; border administration; transport and digital infrastructure; transport services; and operating environment. The study is published every two years by the World Economic Forum and the Global Alliance for Trade Facilitation. The Philippines ranked 91st for infrastructure, scoring 3.5, after a 2.6 -- its lowest score under any pillar -- in the availability and quality of transport infrastructure, a rank of 116th. Under the same subindex, the country placed 85th in the availability and quality of transport services with a score of 3.7. It was 76th in availability and use of ICT. In the subindex rating the operating environment, the Philippines ranked 104th with a score of 3.9. In border administration, the country was 93rd after scoring a 4.1. The Philippines ranked 22nd in domestic market access while placing 39th in foreign market access, scoring 5.6 and 4.5 respectively. The Philippines, as well as the other member states of the ASEAN region, was recognized for keeping its market open at a time when protectionist sentiments prevail in developed economies.
Pushing the accelerator on infrastructure build-out Nikkei Asian Review 1st Dec 2016
During the six-year tenure of former president Aquino, the successful launch of an initiative to boost infrastructure through public-private partnerships (PPP) made the Philippines Asia's third largest PPP market, behind China and India. However, implementation still fell well short of targets, with 12 projects worth 292bn pesos ($6bn) actually awarded out of a targeted 53 projects with a value of 1.31tn pesos. Of the 12 awarded, only 3 have actually been completed (see chart). Projects were often delayed by a lack of government coordination (Asean May 5, Macro). Since assuming office, however, President Rodrigo Duterte has taken steps to inject new momentum into the process (Asean Sep 30, Macro).
Senate votes to ratify AIIB membership philstar 1st Dec 2016
MANILA, Philippines – The Senate is set to make a final vote next week on its concurrence to the Executive Branch’s ratification of the Articles of Agreement of the Asian Infrastructure Investment Bank (AIIB), from which the Philippines can tap billions of dollars in funding for projects. The Senate on Tuesday approved on second reading the report of the Sub-Committee on Foreign Relations for the AIIB Treaty after Sen. Loren Legarda sponsored it on the floor. Legarda, who chaired the hearings of the sub-committee, said membership to the AIIB would help achieve the country’s growth targets through accelerated infrastructure spending. “Development of infrastructure is crucial for enhancing our trade competitiveness. Resilient and adequate infrastructure will reduce the costs of trade and strengthen our competitiveness. These would impact on our future growth,” the senator said.
Sangley Airport up and running by November 2017 | BusinessMirror BusinessMirror 1st Dec 2016
The Department of Transportation (DoTr) promised the airline industry that the Sangley Airport in Cavite would be up and running by November 2017. During a panel discussion on Transport Network for Tourism at the Tourism Summit of the Department of Tourism (DOT) last week, Transportation Undersecretary for Aviation Roberto C.O. Lim said the agency will soon be “bidding out the civil works for Sangley, prevent its flooding, and improve the runway to ensure small jets and turbo aircraft” will be able to use the airport. “We hope to use Sangley by November 2017, so we can decongest Manila [Ninoy Aquino International Airport],” he told participants of the summit. Lim said this is in response to the continuing complaints of the airline industry, whose representatives were also at the panel discussion, that a new airport was needed soon. The DoTr is also studying proposals for a new airport in Bulacan from San Miguel Corp. and on reclaimed land at Sangley Point, a former US naval base, from the Solar-SM Group. The DOTr under the Aquino administration said it would move out general aviation, including air charter services to Sangley, to decongest the Naia, which has already exceeded its capacity. But by the end of its term, it had yet to bid out any project to improve the Cavite facility.
DTI-DPWH partnership aligns infra, industrial development philstar.com 30th Nov 2016
The Department of Trade and Industry (DTI) and the Department of Public Works and Highways (DPWH) have signed an agreement to align the country’s infrastructure development with industry and trade development. “Wherever there are factories or manufacturing areas, they’ll make sure that the roads going there will have access. And if there are roads in place, they will improve and widen it. In other words, DPWH’s infrastructure program will be coordinated and aligned with the DTI programs,” Trade Secretary Ramon Lopez said yesterday following the signing of the agreement between the agencies. To be called as the Roads Leveraging Linkages for Industry and Trade (ROLL IT) Program, the DTI and DPWH partnership will establish a working arrangement for both agencies to jointly undertake the planning, budgeting, advocacy for legislation, identification, and prioritization of industry-developing infrastructure projects in priority economic and manufacturing zones across the country. The program is envisioned to further fuel the recent high growth of domestic investments as well as the surge in foreign direct investments of the country through more road projects funded within the Duterte administration. The ROLL IT program is expected to leverage on the success and experiences of the Department of Tourism-DPWH Convergence which led to the upgrading of roads leading to tourist destinations. The DTI said the creation of the program is timely because by next year, the DPWH would have paved most of the national roads and made permanent the national bridges.
Government to make ecozones rural investment magnets BusinessMirror 29th Nov 2016
The government is planning to construct more roads leading to key manufacturing and economic zones, in a bid to entice investors to set up shop in rural areas. The departments of Trade and Industry (DTI) and Public Works and Highways (DPWH) on Tuesday launched a “convergence” program aimed at putting in place more roads in ecozones. The DTI and the DPWH signed a memorandum of agreement (MOA) for the convergence program, dubbed as the “Roads Leveraging Linkages for Industry and Trade (ROLL-IT) Program.” The MOA aims to establish the working arrangement between the DTI and the DPWH to jointly undertake the study and creation of infrastructure projects in priority economic and manufacturing zones in the Philippines. Through better road infrastructure connecting the industries, the government hopes to attract more investors in rural areas. The DPWH said it will allocate funds for the program in 2018. The ROLL-IT program is a cornerstone of the Duterte administration’s “golden age of infrastructure,” which aims to allocate P8.2 trillion, or 7 percent of GDP, for infrastructure projects.
Ratification of AIIB agreement deferred BusinessWorld 29th Nov 2016
Senate Resolution No. 241, or the “Resolution Concurring in the Ratification of the Articles of Agreement of the Asian Infrastructure Investment Bank” was sponsored yesterday to the plenary by Senate Committee on finance chairperson Loren B. Legarda. According to her sponsorship speech, membership in the AIIB will provide additional opportunities to finance infrastructure projects and rural development initiatives. Instead of ratification, the resolution was deferred, pending an amendment that would specify the need for Senate ratification should the Philippines chose to withdraw from the bank. Funds for the Philippines’ membership have been set aside in the 2017 General Appropriations Act. The Philippines has until the end of December to ratify the terms of membership. Should it do so, it will become a founding member of the bank. -- Lucia Edna P. de Guzman
Duterte gov’t to invest $23B in tourism infra Philippine Daily Inquirer 29th Nov 2016
A part of the Duterte administration’s investments will be devoted to infrastructure for the tourism industry, to support it as a major engine of growth for the Philippine economy. In a statement, Finance Undersecretary Grace Karen Singson said that under the National Tourism Development Plan (NTDP), the Philippines would invest $23 billion in tourism infrastructure starting now until the President’s term ends in 2022. This plan aims to make the sector “not only sustainable and highly competitive in the region, but also socially responsible to propel inclusive growth,” she said. Singson said the proposed NTDP investments cover road networks, airports, ports for cruise ships, railways, site infrastructure, tourism enterprise zones, transport units, accommodation facilities and aircraft acquisition. Under the NTDP, the government aims to build up to 2,620 kilometers of tourism roads over the next six years, from a baseline of 900 kilometers, which will require an investment of $2 billion. She pointed out that, as an Asean member, the Philippines can benefit from the regional bloc’s actions towards greater connectivity, especially in terms of air and sea travel, as well as improving travel facilitation, such as the full implementation of the Asean lanes. At the same time, the high level of intra-Asean tourism, which accounts for 47 percent of visitors in the country, “provides the opportunity to harmonize Asean tourism quality and standards that could be a precursor to developing an ‘Asean brand’ that the region could roll out to the global tourism market,” Singson said. According to Singson, developing the tourism industry is integral to the Duterte administration’s 10-point socioeconomic agenda as this sector is the third biggest contributor to the country’s gross domestic product (GDP).
NEDA to draw up list of infra projects for Chinese investment Rappler 29th Nov 2016
MANILA, Philippines – In a bid to speed up infrastructure plans, the National Economic and Development Authority (NEDA) will draw up a list of projects that could be built by China as part of its pledge for increased investment. "We will be submitting in a week's or two weeks' time, an indicative list of projects for which we would like to work with China, including those that require feasibility studies or capital assistance, so even public-private partnership (PPP) projects," said NEDA Undersecretary Rolando Tungpalan on the sidelines of the PFIC Global Investment Forum on Tuesday, November 22. "We're clearing up the list to make sure those are good projects that we would like China to help us with and some of that can be either co-financed with the Asian Development Bank and World Bank, because there may be large investments that are too big to chew for one developing partner," he added.
JP Morgan: Investors will only dangle cash for infra projects with low risks Philippine Daily Inquirer 28th Nov 2016
For a country like the Philippines striving to enter a golden age of infrastructure, financing is not a tough hurdle for proponents due to a very liquid capital market. But the bigger concern for investors was the lack of well-structured projects with predictable cash flow and shielded from the potential changing of the rules in the middle of the game, investment bankers from JP Morgan Chase said. In an interview with Inquirer, JP Morgan executive director and head of banking Philippines Carlos Ma. Mendoza said: “It’s really [about] the projects being structured well and being taken to market in a timely fashion and with rules that don’t change in the middle of the game.” The Securities and Exchange Commission recently approved a pioneering framework for the listing of any company engaged in an infrastructure project under the public-private partnership (PPP) program. The new framework waives the usual requirement of a three-year track record and operating history for PPP companies, provided they are able to comply with the rest of the requirements for listing on the Philippine Stock Exchange’s (PSE) main board. Based on the rules approved by the SEC, to qualify for stock market listing, the PPP project bagged by the company going public should not be less than P5 billion as indicated in the financial bid. Existing shareholders of the PPP company are prohibited from offering their shares during the initial public offering period, which means that only primary shares will be allowed for sale. Given that concessions under the PPP projects expire at some point, the PSE was tasked to ensure investors would know what would happen to the assets of the PPP company. As part of the additional disclosure requirements under the framework, a listed PPP company must submit to the exchange a business plan which may include its plans for liquidation and winding up, or a proposal for a new business, at least three years before the scheduled expiration of the PPP contract.
ADB hikes Philippine growth forecasts philstar 25th Nov 2016
The Asian Development Bank (ADB) has revised upward anew its economic growth projection for the Philippines to 6.8 percent for 2016 and 6.4 percent for 2017. This is ADB’s third revision after a revised 6.4 percent and 6.2 percent economic growth forecast for 2016 and 2017, respectively. The original forecast was six percent for 2016 and 6.1 percent for 2017. In a briefing yesterday during the Businessworld and Philippine Airlines Asean Regional Forum, ADB country economist Aekopol Chongvilaivan said the reason for the upward revision is the country’s better-than-expected economic growth in the third quarter of the year. “Basically, it’s because of the third quarter (performance). Growth is much higher than expected and export performance is much better than expected and this is supported by a weaker peso,” Chongvilaivan said.
Infra spending hike to grow logistics sector by 300% Cebu Daily News 24th Nov 2016
Increased spending on infrastructure, which is the thrust of the Duterte administration especially on improved transport facilities, is expected to grow the Philippine logistics industry by at least 300 percent in the next four years. Jonathan Cabaltera, assistant chief of the supply chain and logistics management division, an advisory body under the Department of Trade and Industry (DTI), said the industry is projected to expand from an actual value of P100 billion in 2013 to P326 billion in four years, given the right infrastructure, policies, regulations, and institutional support. “We are very much optimistic (that we will hit our projection) because there are a lot of infrastructure developments going on right now,” he told reporters at the sidelines of the Supply Chain and Logistics Roadshow in Cebu City on Thursday.
BCDA presents government’s ‘most ambitious’ infrastructure plan for Clark Freeport BusinessMirror 24th Nov 2016
The Bases Conversion and Development Authority (BCDA) has embarked on a road-show series to bring the most ambitious infrastructure-development plan of the national government under the “Build, Build, Build” mantra of the Duterte administration. On Thursday newly appointed BCDA President and CEO Vivencio Dizon faced various Clark stakeholders for the first time at the Royce Hotel here, where he presented the development projects for Clark, starting with the so called Clark Green City (CGC), the Subic-Clark train service and the expanded terminal of the Clark International Airport (CIA), among others. Dizon described the various infrastructure projects as the most ambitious in Philippine history. Among the big-ticket projects, he said, include the expanded terminal of the CIA, where the International Finance Corp. of the World Bank was engaged in order to be guided on what is best and viable. “ The new terminal will tendered out by middle of next year and then the groundbreaking will also be done by the second half of next year,” Dizon said. He said the feasibility study for the Subic-Clark train is now being done in coordination with the Department of Transportation (DOTr), along with the Manila-Clark rail project. The CGC, he said, will be pursued aggressively starting with the 15-kilometer four-lane expressway, which will also have a train in the median, as well as pedestrian and bicycle lanes that will connect the airport to the CGC. Overall, the BCDA said the event highlights discussion on the Clark Infrastructure Development Plan in pursuit of regional development as anchored in President Duterte’s 10-point socioeconomic agenda, which gives premium to inclusive growth and infrastructure development.
NEDA names new PPP Center executive director BusinessWorld 22nd Nov 2016
The National Economic and Development Authority (NEDA) swore in Ferdinand A. Pecson as new Executive Director of the Public-Private Partnership Center of the Philippines yesterday, after President Rodrigo R. Duterte signed the appointment papers on Nov. 15. The new Executive Director (ED) said he plans to optimize PPP processes amid previous setbacks for the agency. “It is continuing what has been started. The Center already built the foundations for the program and therefore I am very glad we are not starting from zero,” Mr. Pecson was quoted as saying. Mr. Pecson said the benefits of working in partnership with the private sector include raising the standard of construction for government projects, including safety aspects, because project proponents often bring in international expertise. Last week, NEDA approved two PPP projects at a board meeting -- the New Nayong Pilipino to be built at Entertainment City, and the South line of the North-South Railway. Mr. Pecson previously held a professorship at the University of the Philippines. Prior to that, he was in the private sector in the field of engineering for 20 years. His previous employers include FLSmidth, Holcim Philippines, Deere & Company, and Pricewaterhousecoopers. According to the statement, Mr. Pecson has a PhD in Energy Engineering from the University of the Philippines, a Master of Business Administration (MBA) from the Kellogg School of Management of Northwestern University, and a Bachelor of Science in Mechanical Engineering from the University of the Philippines.
China infra pledges first in line for implementation BusinessWorld 21st Nov 2016
Investment pledges the Philippines secured from China during President Rodrigo R. Duterte’s state visit to Beijing last month may soon be implemented after government officials met with Chinese authorities last week. According to a statement e-mailed to reporters over the weekend, Finance Secretary Carlos G. Domiguez III, Public Works Secretary Mark A. Villar and Senator Alan Peter S. Cayetano held detailed discussions last week with China’s National Development and Reform Commission (NDRC) Deputy Chairman Ning Jizhe regarding several of the pledges, particularly those involving investment cooperation and transport infrastructure, which are covered in a memorandum of understanding (MoU) the Philippines concluded with China. The MoUs were signed by the National Economic and Development Authority (NEDA), the Department of Public Works and Highways (DPWH) and Department of Transportation. “On our side we have the One-Road, One-Belt Initiative by President Xi Jinping and we hope that both sides can encourage these plans and encourage Chinese business to invest in the Philippines,” Mr. Ning was quoted as saying in a statement. The secretary of the Department of Finance is set to submit to the Chinese embassy a list of proposed projects on Dec. 1. Mr. Dominguez has said that he hopes for Chinese assistance in developing land and sea infrastructure, energy, irrigation and flood control projects.
DOF: PH set for a winning streak in China-led AIIB gamble Philippine Daily Inquirer 21st Nov 2016
The Philippines stands to gain a huge return on investment from its contribution to the capitalization of the Asian Infrastructure Investment Bank (AIIB) once it becomes a member of the China-led multilateral lender. According to a briefing paper from the Department of Finance (DOF), the Beijing-based AIIB “can provide an annual financing window to the Philippines of about $200 million to $500 million, representing a 400-1,150 percent return on investment of our required paid-in capital of $200 million in five years.” The financing that can be provided by the AIIB easily dwarfs the $11.56-million in investments the country needs yearly to narrow the infrastructure gap until 2020, as earlier projected by the Manila-based Asian Development Bank (ADB). The DOF said the Philippines also stood to benefit from the AIIB in terms of increased jobs for Filipino contractors, manual laborers and professionals who would have more opportunities for projects not only in the Philippines but also abroad; reduced trade costs of about 15.6 percent of trade value and a gain in real income of $220 billion; and increased competitiveness and productivity, on top of improved market connectivity and enhanced economic opportunities for both urban and rural areas of the country. The Philippines announced early last year it would be joining the AIIB. Today, however, the country remained one of nine prospective members that have yet to deposit the instruments of ratification, National Treasurer Roberto B. Tan said. Forty-eight countries in and around Asia are already AIIB members.
Duterte gov't calls off auction for South Line of North-South Railway Rappler 16th Nov 2016
The Duterte administration has called off the public-private partnership (PPP) auction for the South Line of the North-South Railway Project (NSRP), and will instead finance the project through official development assistance (ODA) either from China or Japan. Budget Secretary Benjamin Diokno made the announcement on the sidelines of the 22nd Association of Southeast Asian Nations (ASEAN) Transport Ministers Meeting in Pasay City on Thursday, November 17. "We will instead look for financing – either Japan or China. With the government, we can borrow with a lower cost. We don't need return on investment," Diokno said. He said that the National Economic and Development Authority (NEDA) Board has raised the cost of the railway project to "between P250 billion and P260 billion" from P170.7 billion. "Kami na lang magpapagawa (We will just be the one to develop it) just like the SCTEX (Subic-Clark-Tarlac Expressway) model," Diokno said. The construction of SCTEX was funded through Japan ODA, while its operation and maintenance was auctioned off. The railway project is one of the 9 projects that the NEDA Board chaired by President Rodrigo Duterte approved on Monday, November 14. The railway PPP deal will involve commuter lines connecting Tutuban in Manila to the southern peripheries of Metro Manila, and a long-haul network to the Bicol provinces. The South Line will also include an initial terminus in Legazpi City and a branch line eventually connecting to Matnog in Sorsogon. Once the Philippine government has secured funding, the budget chief said it will take "4 years to construct the project."
NEDA board approves Tutuban-Sorsogon railway, 7 other projects Rappler 14th Nov 2016
The National Economic and Development Authority (NEDA) Board, chaired by President Rodrigo Duterte, approved 9 projects on Monday, November 14. One of the projects approved during the NEDA board meeting is the South Line of the North-South Railway Project, a train that will run from Tutuban in Manila to Sorsogon in Bicol. NEDA Director-General Ernesto Pernia, quoted in an Inquirer article, said the 653-kilometer railway will cost P214 billion, making it the biggest Public-Private Partnership (PPP) project. Duterte, before he assumed the presidency, had said he aims to build 3 legacy railways in Luzon and Mindanao during his term. The projects approved in the Monday meeting are worth around P270 billion, said Pernia in a message to Palace reporters. During the NEDA board meeting, guidelines for processing projects that involve assistance from Chinese parties were also discussed. Some of these guidelines include: the source of financing for pre-investment studies are not tied to a particular country/technology/lender; suppliers are qualified and of "good standing"; contracts are favorable to government. The discussion on guidelines comes after Duterte's state visit to China where Memoranda of Understanding between the government and Chinese companies were signed. But some of these Chinese companies were found to have shady track records. One firm was involved in a string of accidents in Vietnam, while another was banned by multilateral lender World Bank. The Palace later clarified that the government has made no commitments to these companies and had only agreed to allow the companies to do "feasibility studies."
Amid Tugade's resistance, Duterte eyes Sangley as 2nd low-cost airport after Clark InterAksyon.com 14th Nov 2016
The current Sangley airport in Cavite may become another low-cost carrier airport like Clark that would serve the Calabarzon area in addition to becoming the general aviation hub. The proposal was discussed during the August 22 Cabinet meeting where no less than President Duterte himself had invited the private proponent, the Tieng brothers of the Solar Entertainment Group, after the latter complained to Malacanang of their inability to get an audience with Transport Secretary Arthur Tugade. A former president of Clark Development Corp., Tugade is said to be in favor of expanding Clark from a budget terminal to becoming the country's main international gateway. The Tiengs, on the other hand, have submitted an unsolicited proposal to Duterte in favor of Sangley, initially as a secondary budget and general aviation airport before eventually expanding it into a two-runway international airport and seaport complex on reclaimed land. The main challenge to making Sangley viable is, like Clark, the absence of fast road and rail connectivity, as the main road leading to the Sangley peninsula is a two-laner built during the American occupation.
PH to host ASEAN transport meetings ABS-CBN News 13th Nov 2016
The Philippines will host two high-level meetings on transportation of the Association of Southeast Asian Nations (ASEAN) starting Monday. The Department of Transportation will host the 42nd Senior Transport Officials Meeting (STOM) and the 22nd ASEAN Transport Ministers Meeting, which will run until Friday at the Philippine International Convention Center in Manila. More than 200 transport officials and delegates from 10 ASEAN member states will convene to discuss various transport initiatives and policies that will improve connectivity and enhance cooperation in the region. STOM leaders are expected to review transport agreements and projects such as the Kuala Lumpur Transport Strategic Plan, which is the transport vision and blueprint for 2016 to 2025. Other transport initiatives to be discussed include the establishment of the ASEAN Single Shipping Market and the ASEAN Roll-on Roll-off Shipping Network, which are both designed to facilitate trade, and provide easier access to key markets in the region. Transportation Secretary Arthur Tugade is this year's ATM chairman while Undersecretary for Administration and Finance Garry de Guzman will serve as STOM chairman.
SEC approves rules for PPP listing philstar.com 12th Nov 2016
The Securities and Exchange Commission (SEC) has approved the rules on the listing of public-private partnership companies on the stock exchange. The move is in line with the Duterte administration’s program to sustain economic growth. Under the approved rules, a PPP company may apply for listing if it is a corporation which was awarded a PPP contract or a special purpose company incorporated by the awarded company or consortium. A PPP company seeking to list may apply for listing even if it does not have the required minimum three-year track record and operating history. The PPP project shall not be less than P5 billion as indicated in the financial bid and that existing shareholders of the PPP company prior to initial listing are prohibited from offering their shares in the PPP company during the initial public offering period. A listed PPP company must also submit to the exchange a business plan which may include its plans for liquidation and winding up should its contract expire or be terminated. The government has so far awarded $4.2 billion worth of projects since the program was launched in 2010.
SEC gives go-signal for PPP listing rules BusinessWorld 12th Nov 2016
Proponents of infrastructure projects under the public-private partnership (PPP) framework may now advance their plans of debuting on the equities market, after the Securities and Exchange Commission (SEC) approved the applicable listing rules. In its en banc meeting on Nov. 8, the corporate regulator approved the supplemental listing and disclosure rules crafted by The Philippine Stock Exchange, Inc. (PSE) for private-sector proponents of PPP infrastructure projects. The bourse operator, however, will have to resolve comments -- mostly pertaining to the language of certain provisions -- from the Markets and Securities Regulation Department (MSRD), Amando A. Pan, Jr., officer in charge of the Office of the Commission Secretary, noted in a text message. The approved rules will allow companies with PPP contracts worth at least P5 billion to debut on the equities market upon commencing commercial operations or completing construction work or a phase of the project. The framework effectively relaxed the exchange’s standing listing rules by waiving the minimum three-year track record and operating history required of companies seeking to join the PSE Main Board, among others. The PSE, however, bars the principal shareholders of a listed PPP company from selling, assigning or disposing of their shares in any manner a year from the initial listing date. Secondary offering is also prohibited during the initial public offering (IPO) period. Also, a listed PPP company must submit to PSE a business plan, which may include its plans for liquidation and winding up or a proposal for a new business plan, at least three years before the scheduled expiration of the PPP contract. The PSE has yet to discuss the sanction for failure to submit the business plan, but the MSRD said in a Nov. 8 letter to the SEC en banc: “This could be clarified even after approval by the Commission and before start of implementation.”
Manufacturing
DTI keen on upgrade in Manufacturing Resurgence Program targets philstar.com 1st Dec 2016
The Department of Trade and Industry (DTI) is looking to upgrade the targets under the Manufacturing Resurgence Program due to the continued growth of local industries and acceleration of the economy. DTI Assistant Secretary Rafaelita Aldaba said the agency would likely set “more ambitious” goals for the updated program set to be released by the first quarter of next year. Among those which will be reviewed are the manufacturing growth targets, the sector’s projected share in the gross domestic product (GDP), and manufacturing’s potential job generation. The existing Manufacturing Resurgence Program targets to increase the contribution of the sector to 30 percent of GDP by 2020 and also raise to 15 percent its share in total employment. For the growth of the manufacturing sector, Aldaba said it could be raised to as much as 10 percent. The DTI on Monday unveiled a new industrial strategy that aims to create globally competitive, value adding, innovative, and inclusive industries. The new strategy’s top five industry priorities include manufacturing, agribusiness, information technology-business process management, tourism, and infrastructure and logistics. The agency said while the services industry served as the main driver of the country’s growth in past decades, the manufacturing industry has been playing an important role and has been contributing substantially to economic growth since 2013. In the third quarter of 2016, manufacturing grew 6.9 percent, up one percentage point from 5.8 percent posted in the same period last year.
Government wants car tax hike in 2018 BusinessWorld 30th Nov 2016
Buyers of new cars face a higher tax starting 2018, as the government moves to make its taxation system more progressive, rake in more funds for development needs and ease major urban hubs’ worsening traffic, the Finance department said in a statement yesterday. “If this thing is going to pass, it will probably be effective in 2018. So we have a year to fix it,” the statement quoted Finance Secretary Carlos G. Dominguez III as saying. “[W]e are not imposing this merely to make life hard for people. We are imposing this to finance [our] infrastructure needs.” The same statement quoted Undersecretary Karl Kendrick T. Chua, the department’s chief economist, as saying this plan involves a restructuring of the current excise tax on automobiles by shifting to an ad valorem system in order to simplify computation. The department’s initial proposal is to increase the rate on “entry-level cars” worth up to P600,000 to five percent from two percent currently, while luxury vehicles priced over P2.1 million will be taxed 60% of the manufacture or import price, up from the current P512,000 plus 60% in excess of P2.1 million. Mr. Dominguez said the department’s timetable for the restructured excise tax on automobiles should give the current administration “enough time to start fixing the problems plaguing the country’s rail transit system and put in place additional alternative modes of city travel that would encourage people to use mass transport rather than ride cars.” Along with restructuring the excise tax on automobiles, the department is looking at also adjusting the fuel excise tax. Its studies show the population’s top two million -- the richest 10% -- consume nearly 60% of petroleum products, while the top 200,000 households, or the richest one percent, use 20% of petroleum products.
Zobel: PH can be a force in high-tech manufacturing Philippine Daily Inquirer 30th Nov 2016
After missing the boat decades ago, the Philippines now has a “unique but fleeting” window of opportunity to build itself as a high-value manufacturing powerhouse in Southeast Asia, said Jaime Augusto Zobel de Ayala, head of conglomerate Ayala Corp. In a keynote speech during the Manufacturing Summit 2016 Tuesday, Zobel said manufacturing has evolved in the last 20 years amid technological breakthroughs that have enabled extreme connectivity and automation around trends such as artificial intelligence, robotics, the internet of things and autonomous vehicles. This was the same reason why global tech giants like Apple and Google were now into car designing, he said. Zobel also noted an emerging shift in supply chain strategy, where manufacturers like Lenovo and Inditex (owner of the Zara retail chain) were increasingly finding it more sensible to produce goods closer to their core markets. Zobel is particularly upbeat on the automotive industry, citing the strong growth in vehicle sales since the country passed the “motorization” (a phenomenon whereby purchases of cars rise) threshold of $2,500 per capita gross domestic product in 2012. In the Philippines, vehicle sales have been growing at an average rate of 18 percent annually. Out of the 320,000 units in vehicle sales recorded last year, Zobel noted only 30 percent was locally manufactured. “I believe this presents a compelling opportunity to take on a ‘build where you consume’ strategy for the Philippine automotive industry. But achieving a sustainable revival of the manufacturing industry would require collaborative efforts between the government and the private sector, Zobel said. “I believe it is imperative that we develop an integrated country strategy for the manufacturing sector under a single and unified roadmap across the entire spectrum of the supply chain,” Zobel said.
Manufacturing growth outpaces services’ Malaya Business Insight 29th Nov 2016
Manufacturing growth would pick up to an average of eight to 10 percent in the next six years as government focuses on a strategy where it “helps create globally competitive, value adding, innovative and inclusive industries.” Ramon Lopez, secretary of the Department of Trade and Industry (DTI), told delegates of the Manufacturing Summit at the Makati Shangri-La yesterday as it is, the growth of manufacturing has outpaced that of services. For more than a decade, from the third quarter of 1999 to 2012, the average growth of manufacturing was 3.2 percent compared with that of services at 5.5 percent. This has since reversed as manufacturing growth doubled to 7.3 percent from the third quarter of 2013 to 2016, outpacing that of services which expanded 6.7 percent in the same period. The Philippines is now on the verge of economic transformation; while services was the main driver of growth in the past decades, manufacturing has been playing an important role and contributing substantially to economic growth since 2013. Lopez emphasized that the new strategy focuses on industries where the Philippines has existing and potential comparative advantage to generate employment and promote entrepreneurship. The new strategy’s top five industry priorities include manufacturing, agribusiness, information technology-business process management (IT-BPM), tourism, and infrastructure and logistics. Lopez added the manufacturing sector presents opportunities to provide productive jobs to low-, medium- and highly-skilled workers, emphasizing the need to shift from traditional agriculture to more modern agribusinesses, as well as the relevance of tourism as source of income and jobs. The new industrial strategy is DTI’s key response to sustain today’s high level growth, while addressing the issue of unemployment, which is comprised mostly of the youth aged 15 to 24 years old, 61 percent are male, and 40 percent have high school education while 36 percent have college education.
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