| National Affairs
President Aquino Advances 2015 Budget For Inclusive Growth Government of the Philippines 30th Jul 2014
President Benigno S. Aquino III—through the Department of Budget and Management (DBM)—today submitted the government’s proposed P2.606-trillion 2015 National Budget to Congress, in fulfillment of the Administration’s commitment to further facilitate rapid, inclusive, and sustainable growth in the country. The Administration’s proposed expenditure program for 2015 is 15.1 percent higher from the current year’s P2.265-trillion budget, representing 18.4 percent of the country’s Gross Domestic Product and reflecting the jump in the Administration’s growth assumption of 7.0-8.0 percent for 2015. “Our proposed spending program is an expression of the President’s unerring commitment to bring inclusive socio-economic development to the people. In 2011, we started our budget reform agenda from the jump-off point of good governance, with the end goal of lifting more Filipinos out of poverty.
Palace vows action on businessmen’s concerns, details priority bills Business World 30th Jul 2014
MALACAÑANG yesterday vowed “prompt action” on reforms pushed by the business community even as President Benigno S.C. Aquino III was largely silent on these during his latest State of the Nation Address (SONA). Mr. Aquino on Monday delivered his penultimate report to the people, which businessmen found lacking in terms of details on how the government planned to improve the country’s business environment. Communications Secretary Herminio B. Coloma, Jr., in an e-mail, said: “Although the President may not have replied directly to their specific proposals in his SONA last Monday, the major themes underlying their concerns are aligned with the administration’s priority programs...” “[T]hey can expect prompt action in terms of any or a combination of the following actions: policy review, drafting of proposed legislation, and issuance of executive or administrative orders,” he added.
Cargo truckers given another month to secure LTRFB franchise Business Mirror 30th Jul 2014
HE Land Transportation Franchising and Regulatory Board (LTFRB) has extended the moratorium period on the apprehension of trucks-for-hire by a month to give operators time to file their provisional authority (PA) to operate. The agency granted the petition of the business sectors and trucks-for-hire freight owners who requested for an extension, saying that a substantial number of applicants have yet to complete their application for franchise permits.The moratorium period is extended until August 29, but the filing of PA is only up until August 22.
Philippine population officially hits 100 million Rappler 30th Jul 2014
The Philippine population hit a new milestone on Sunday, July 27, with the birth of the 100 millionth Filipino, a healthy baby girl. Baby Chonalyn was born at the Dr. Jose Fabella Hospital in Manila at 12:35 am, officially pushing the population of the country to the historic milestone that highlights the challenge of providing for more people in the already-impoverished nation. She is the daughter of Dailin Cabigayan, a resident of Sampaloc, Manila. Baby Chonalyn is one of 100 babies born in state hospitals all over the archipelago who received the symbolic designation of "100,000,000th baby". "This is both an opportunity and a challenge... an opportunity we should take advantage of and a challenge we recognize," Juan Antonio Perez, executive director of the official Commission on Population, told Agence France-Presse. Mother and child were presented to the media at the hospital in Sta Cruz, Manila.
DTI welcomes Go Negosyo Act approval Philippine Star 30th Jul 2014
The Department of Trade and Industry (DTI) welcomes the approval into law of the Go Negosyo Act which would help promote the growth of micro, small and medium enterprises (MSME) in the country. According to the DTI, the approval of Republic Act 10644: An Act Promoting Job Generation and Inclusive Growth through the Development of MSMEs or the “Go Negosyo Act,” authored by Sen. Paolo Benigno “Bam” Aquino IV, is expected to bring government services closer to small businesses through the establishment of Negosyo Centers in all provinces, cities, and municipalities.
Pope Francis to visit Philippines ICN 30th Jul 2014
The Vatican has confirmed dates for Pope Francis’ second visit to Asia will is scheduled for next January. The Pope will visit Sri Lanka and the Philippines - the first visit by a pontiff to the two countries in 20 years.
Aquino tears up in his 5th Sona Inq 29th Jul 2014
President Aquino choked up, surprising his audience, and left not a dry eye in the house as he wrapped up his fifth State of the Nation Address (Sona) talking about his parents who fought for democracy, the legacy they left, and how he would not let his administration’s detractors take away the gains his presidency had achieved the past four years. Aquino’s celebrity sister, Kris Aquino, was seen crying in the VIP gallery and wiping away her tears. The President was optimistic that his program, dubbed “daang matuwid,” could extend far beyond his six-year term so long as the public would choose the path of “transformation” and pick his rightful successor in 2016. “To my bosses: You gave me the chance to lead our country’s transformation. If I refused the challenge you laid before me, it is like saying I will help prolong your agony and my conscience cannot take that. If I turned my back on the chance given to me, it is like turning my back on my father and mother, and everything that they sacrificed for us. That will never happen,” the President said in Filipino. And then his voice cracked. Regaining his composure, the President continued: “As we tread on the straight path, you chose what is good and what is right; you remained true to me—and I remain true to you.” Some of the people in the audience stood up in one of the most loudly applauded parts of his 91-minute speech. “The transformation we are enjoying now can become permanent with the help of the Lord. As long as our faith and trust is complete, and as long as we become each other’s strengths, we will continue to prove that ‘the Filipino is worth dying for,” “the Filipino is worth living for,” and I will add: ‘The Filipino is worth fighting for,’” Aquino said.
Philippine President Offers Upbeat View on Economy WSJ 28th Jul 2014
Philippine President Benigno Aquino III said his country is further opening to business and the economy is strengthening, in his penultimate State of the Nation address Monday to Congress, while he glossed over impeachment attempts and his waning popularity. "Our economy and our country are indeed taking off, and we are already realizing even greater aspirations," Mr. Aquino told lawmakers. "No doubt, the Philippines is now more-open for business." As Mr. Aquino made his fifth State of the Nation address, thousands of demonstrators gathered on the road leading to the national legislature to protest what they say is the failure of the administration to create jobs needed to lift millions of Filipinos subsisting on less than $2 a day out of poverty.
PNoy boasts gains in poverty reduction ABS - CBN 28th Jul 2014
President Benigno Aquino III brought to the spotlight his administration's gains in poverty reduction in his fifth State of the Nation Address (SONA) on Monday. Aquino said the expanded conditional cash transfer (CCT) program, also known as the Pantawid Pamilyang Pilipino Program (4Ps), has a budget of P12.3 billion. The Department of Social Welfare and Development (DSWD) has expanded the program's coverage by including children aged 14 to 18 starting on June this year. The expansion allows the children of beneficiaries to get cash grants until they finish high school.
PNoy seeks Congress backing of disaster recovery plan ABS - CBN 28th Jul 2014
President Benigno Aquino III sought the support of Congress in the government’s Local Government Rehabilitation and Recovery Plan in order to spur economic growth in provinces affected by man-made and natural disasters. In his fifth State of the Nation Address (SONA) on Monday afternoon, Aquino said he hopes the lawmakers will help in funding the plan because of the enormity of funds needed.
Belmonte pushes passage of FOI, anti-dynasty bills Manila Bulletin 28th Jul 2014
Speaker Feliciano “Sonny” Belmonte Jr. on Monday urged his colleagues to prioritize the passage of at least 10 measures, including the the Freedom of Information (FOI) bill, anti-political dynasty bill, Bangsamoro Basic Law, and the resolution amending the restrictive economic provisions of the 1987 Constitution. The House Chief urged his colleagues to “help us do more” as they opened the second regular session of the 16th Congress “with a profound sense of urgency.”
PH slides 3 notches in human development rankings – UN Manila Times 24th Jul 2014
The Philippines slid three places to the 117th spot in the latest annual ranking of countries’ efforts to improve human development measures, a United Nations Development Program report shows. According to the 2014 Human Development Report (HDR), which reports data for the previous year, the Philippines dropped by 3 notches from its previous ranking of 114th in 2012 to 117th in 2013. Covering 187 countries worldwide, the HDR report measures the improvement of human development in each country in terms of life expectancy, general health measures, education levels and incomes, which are combined to form the human development index (HDI). This year, the Philippines’ HDI scored 0.66 (on a scale of 0 to 1.00), placing the country under the “medium human development” category, together with neighboring countries such as Vietnam, Timor Leste, Cambodia and Laos. Even though the Philippines’ overall ranking declined, the actual score showed a slight improvement from 0.65 in last year’s HDI, which covered 186 countries.
Philippine army warned against "meddling" as coup rumors swirl Reuters 23rd Jul 2014
Philippine soldiers should keep clear of politics, the military's new chief said on Wednesday, as rumors of a possible coup swirled in the capital after the Supreme Court declared President Benigno Aquino's economic stimulus fund illegal. The 120,000-member armed forces has a history of coups and attempted coups. Last month, rumors sprang up of a plot against the Aquino administration because of the fund scandal.
Customs
More fake goods seized in 1st half Business World 29th Jul 2014
The government seized P7.839 billion worth of fake merchandise for the entire 2013, up 50% from P5.222 billion in 2012. In a mobile text message yesterday, IPOPHL Director-General Ricardo B. Blancaflor said: “We are sustaining current efforts to continue seizures [and there will be] no let up among the enforcement units.” Bulk of seizures last semester came were the result of joint operations of the IPOPHL, the National Bureau of Investigation (NBI), and the Bureau of Customs (BoC), with value totaling some P4.144 billion. Of that amount, fake goods seized at ports were worth P2.155 billion, while NBI raids raked in P743 million more. The Optical Media Board also confiscated P599 million worth, while the Philippine National Police collected P83.790 million. The Food and Drug Administration, meanwhile, seized P18.825 million worth of fake medicines.
PNoy: Customs needed a 'reset button' ABS - CBN 28th Jul 2014
A year after berating the Bureau of Customs (BOC) in his State of the Nation Address (SONA), President Aquino had nothing but praise for the agency in this year’s SONA. Aquino highlighted the changes and reforms implemented in the BOC, which, he said, have regained the public’s trust in an agency marred by corruption. “In the Bureau of Customs, which really tested our patience last year, it became clear that pressing the ‘reset button’ was the solution,” Aquino said in his speech on Monday. The BOC entered 2014 with a new commissioner, John Sevilla, after former Commissioner Ruffy Biazon tendered his irrevocable resignation in December 2013 after he was implicated in the pork barrel scam.
Defense & Security
Philippines seeks pledges to suspend unilateral acts in S. China Sea Global Post 29th Jul 2014
Philippine Foreign Secretary Albert del Rosario called Tuesday for all claimants to disputed islands and other land features in the South China Sea to agree to suspend unilateral actions that would further escalate tensions.
Islamist militants kill 18 civilians in Philippines Reuters 28th Jul 2014
Islamist militants in the Philippines killed 18 people on Monday in revenge for their clan's support of government efforts to bring stability to the resource-rich region and the military warned of more bloodshed. The Philippines is majority Catholic but islands in the far south are mostly Muslims and governments have for decades battled autonomy-seeking rebels. While the government has reached a tentative peace deal with the main Muslim rebel group, members of the hardline Abu Sayyaf are still fighting.
Philippines seeks transport aircraft UPI 25th Jul 2014
The U.S. Congress has received notification that the Philippines is seeking to acquire C-130T aircraft and engines for them under a U.S. Foreign Military Sales deal.
Manila Age Cap Hurts Military Reform Plans Wall Street Journal 24th Jul 2014
The newly appointed chief of the Armed Forces of the Philippines must juggle counterinsurgency campaigns against communist and Islamist rebel groups, a sweeping modernization program and worsening territorial disputes with China. But there is one obstacle Lt. Gen. Gregorio Pio Catapang, who became armed forces commander last week, won't overcome: early retirement. Like all recent Philippine commanders, Gen Catapang, 55 years old, is constrained by a policy that forces military chiefs to retire at 56, often within months of taking the reins. The result of the age cap is constant turnover. He becomes the 17th armed-forces chief since 2000. Recent commanders have run the military for an average of just 10 months, and none has completed two full years in the top job.
Gazmin, Canada Trade Chief Talk Defense, $105M Chopper Deal Defense Studies 24th Jul 2014
Defense Secretary Voltaire Gazmin and Canadian Trade Minister Edward Fast discussed the two countries' increasing defense cooperation as well as a helicopter project. Gazmin and Fast highlighted the recently signed contract for $105 million (P4.5 billion) for firm Bell Helicopter Textron Canada Ltd. to supply eight specialized helicopters for the Philippine armed forces. "This contract is an outcome of the Memorandum of Understanding between the Canadian Commercial Corporation and the Department of National Defence of the Philippines," a statement released by the Foreign Affairs, Trade and Development Canada said. The agency said Fast expressed Canada's continuing interest in assisting the Philippines advance its defense and security agenda. The Philippines is gearing to attain a minimum credible defense posture especially in the maritime domain amid concerns on China's increasing militarization in Philippine-claimed areas in the South China Sea.
US to Give C-130 Planes to Philippines Defense Studies 23rd Jul 2014
The United States will give two Lockheed C-130 "Hercules" planes to the Philippines, newly appointed Armed Forces of the Philippines (AFP) chief-of-staff Lt. Gen. Gregorio Pio Catapang revealed. In a state report, Catapang disclosed the impending donation in a visit to the 1st Air Division headquarters in Clark Field, Pampanga, citing American military officials. "I just talked to our US counterparts [and] they told us they are making available another two C-130s to address our humanitarian assistance disaster relief concerns," Catapang said. The United States military has deployed a humanitarian mission to the Visayas after the onslaught of deadly typhoon Yolanda, which took thousands of lives and destroyed countless homes. Catapang said that the Americans extended the offer after learning of President Aquino's plans to acquire new cargo aircrafts for the military.
Economics
P-Noy: Economy truly taking off Business Mirror 28th Jul 2014
President Aquino, delivering his fifth State of the Nation Address (Sona) before a joint session of Congress on Monday, asserted that the Philippine economy is “truly taking off” with barely two years left in his six-year term. But Mr. Aquino, as expected, used the occasion to defend anew his administration’s controversial Disbursement Acceleration Program (DAP), deftly weaving in various DAP-funded projects and its other benefit programs undertaken by his administration.
Economists: SONA fails to address econ problems Manila Times 29th Jul 2014
Economists were disappointed with President Aquino’s State of the Nation Address (SONA) on Monday, saying there was no specific plan or action to resolve the prevailing economic problems. “As expected, he trumpeted DAP (Disbursement Acceleration Program) and its benefits,” Nicholas Antonio Mapa, associate economist of the Bank of the Philippine Islands (BPI) said. Mapa also noted that the President was not able to highlight how he intends to solve the power current power crisis and the weak infrastructure spending. In his speech, President Aquino only called for increased coordination between the Department of Energy, Joint Congressional Power Commission and Energy Regulatory Commission and did not mention a specific plan on solving the looming power crisis. In terms of infrastructure development, the President noted that through the Department of Public Works and Highways (DPWH), about 12,184 kilometers were built, including farm-to-market roads.
IMF outlook for PH growth dims to 6.2% Manila Times 28th Jul 2014
IN a reversal of significant surpluses recorded in preceding months, the national government’s fiscal performance reversed to a budget deficit in June amid the government’s efforts to speed up spending during the period. The government posted a primary budget deficit of P42.9 billion for June compared to the P9.97-billion primary surplus a year earlier, according to data released on Monday by the Bureau of the Treasury and the Department of Finance (DOF). The primary budget deficit figure, however, excludes interest payments on foreign and domestic debt issues recorded during the month. Including interest payments, the actual deficit for June stood at P62.5 billion, growing more than 600 percent from the P8.5 billion deficit registered in the same period last year. Revenue collections in June rose 6 percent year-on-year to P138.6 billion, while expenditures also accelerated by 44 percent to P201.1 billion.
Boom ups Filipinos’ per capita income at $2,765 in 2013; luxury goods sale rising Inquirer 27th Jul 2014
Despite the robust economic growth being enjoyed by the Philippines these past few years—as always trumpeted by the Aquino administration—many Filipinos remain poor, if pundits are to be believed. But if one goes around Metro Manila, one will see a number of development projects that may turn a skeptic into a believer in the economic miracle that has turned around the Philippines from being the “sick of man of Asia” to one of the emerging economies in the region. See the malls choked with people shopping all day; more vehicles on the roads, causing traffic jams (poor infrastructure is also a major cause of congestion, but that’s another story); and high-rise, high-end residential and commercial buildings mushrooming all around. World Bank data showed that alongside the expansion of the Philippines’ gross domestic product (GDP), or output of goods and services, came the rise in the purchasing power of Filipino consumers.
Energy
Power emergency: What it means Rappler.com 29th Jul 2014
Manila-Philippines By summer of 2015, there will be a power crisis – 20 days of rotating blackouts won't be remote. Emergency powers for the President is deemed to be the ‘fastest’ solution for now. If you think the 3-hour rotational blackouts that hit Luzon in the aftermath of Typhoon Glenda (Rammasun) were bad, you have not seen the worst. The country is facing a power crisis. And it’s not because of a typhoon or any disaster, it’s simply because there isn’t enough supply. Blackouts – running longer hours and lasting for weeks – will hit Luzon in the summer of 2015 unless the Aquino administration takes crucial steps to avert them, said Energy Secretary Carlos Jericho Petilla.
Utility outlines steps to weather next year’s electricity shortage Business World 29th Jul 2014
MANILA Electric Co. (Meralco) has suggested several measures to address the anticipated supply problem next year after the Energy department pointed out an expected deficiency of around 200 megawatts (MW) starting March, a top company official told reporters on Monday. “There are things that we can probably do, but it is important to reinforce the whole supply chain -- the generating plants, transmission, distribution and the end-users,” Meralco President Oscar S. Reyes said when asked for comment on the expected shortage. Mr. Reyes said Meralco will be discussing the recommendations in detail with the Energy department. MEASURES “Among the things that we can probably do for March to June 2015 is the careful and prudent scheduling of maintenance shutdown of power plants,” he said.
Proposed underground electric wires will raise power rates – DOE Manila Times 25th Jul 2014
The Department of Energy (DOE) is seriously studying proposals to bury underground electricity cables to prevent power outages during typhoons, but warned this would also likely cause an increase in power rates. Energy Secretary Carlos Jericho Petilla said the proposal should be carefully studied because it will impose additional costs to electric distributors, who would subsequently be forced to pass those costs on to consumers. Petilla issued the statement after the Manila Electric Co. (Meralco) said it is “seriously” considering putting electric wires underground after the damage inflicted by Typhoon Glenda caused widespread power outages. The power outages that hit Metro Manila and nearby provinces were attributed to damaged electric wires and utility posts downed by the typhoon.
33 extractive companies agree to enhance tax transparency Manila Times 23rd Jul 2014
Astakeholders’ group said 33 mining, gas and oil companies have expressed their commitment to a transparent extractive industry by signing waivers that would allow the disclosure of their tax and royalty declarations to the government. They appealed to other extractive companies to also join the initiative. In a press briefing on Wednesday, the Philippine Extractive Industries Transparency Initiative (PH-EITI) said the waivers will allow the Bureau of Internal Revenue (BIR) to disclose the firms’ tax payments and credits to the upcoming PH-EITI Country Report which will be launched in December this year. PH-EITI is composed of different stakeholders from the government, the extractive industries, and civil society. It carries out and fulfills the Philippines’ requirements for the EITI, an international standard for the transparent reporting of revenues from natural resources. As a global initiative, EITI is committed to transparency in the bilateral disclosures of industry payments and government collections coming from non-renewable national resources.
Solar home systems to light up Visayas households – DOE Manila Times 23rd Jul 2014
The Department of Energy (DOE) is stepping up the implementation of its Household Electrification Program (HEP)—the energization of off-grid households utilizing renewable energy technology such as solar home systems. To fast-track the program, the DOE-Visayas Field Office (VFO) has organized a series of solar home system (SHS) installations and community consultations in the region. The DOE-VFO is leading the ongoing installation of SHS sets in 375 households in the province of Eastern Samar covering the municipalities of Oras (220 households), Arteche (71 households), Quinapondan (59 households), and General MacArthur (25 households). The SHS set provides three units of 3-watt LED lights and one unit of 1-watt LED light with built-in AM/FM radio and cell phone charger. The DOE said the installation started in the last week of June and should be completed by mid-August this year.
SMEs hobbled by high power cost The Inquirer 25th Jul 2014
The competitiveness of the country’s small- and medium-sized enterprises (SMEs) remains undermined by critical factors, such as the high cost of power and logistics, as well as inadequate transport infrastructure, which have been discouraging many firms from tapping the potential opportunities in an integrated regional economy. Alfredo M. Yao, president of the Philippine Chamber of Commerce and Industry (PCCI), said in a workshop on Thursday that there was a considerable level of awareness on the tariff implications of the economic integration of the Association of Southeast Asian Nations (Asean) and the other free trade agreements that will go along with it. However, the desire to embrace the potentials of the Asean Economic Community (AEC) was deemed “meager” because of concerns on the level of competitiveness of local industries against those of Asean neighbors, Yao said.
Financial Services
Philippine lure seen sweetened Business World 29th Jul 2014
A NEW LAW allowing full entry of foreign banks into the Philippines will help boost investment inflows, a consultancy firm said, giving it an edge as large economies like Japan pour capital into Southeast Asia.
SEC says ASEAN Link on track Business World 28th Jul 2014
THE PHILIPPINES is still on track in its bid to join the ASEAN Trading Link, despite a delay in achieving the key milestone of being accepted as a member of the International Organization of Securities Commissions (IOSCO), a government official said.
Islamic bank struggle in Philippines The Rakyat Post 28th Jul 2014
A peace plan, a lifting of foreign ownership limits and the drafting of new Islamic banking rules in the Philippines could help breathe new life into one of the world’s oldest Islamic finance institutions. Since 1974, Makati-based Al Amanah Islamic Investment Bank has been the only lender in the country offering financial products that obey religious principles such as a ban on interest and gambling. But while Islamic banks around the globe enjoy rapid growth rates and bumper profits, Al Amanah has failed to post a profit for years, and was ultimately forced to offer conventional banking products just to keep afloat. The case of Al Amanah highlights the challenges that Muslim minorities face in accessing interest-free banking services outside of Islamic banking’s core centres in the Middle East and Southeast Asia. Lacking scale and Islamic banking expertise have meant Al Amanah has struggled despite a five-year rehabilitation plan started in 2009 by its parent, the Development Bank of the Philippines (DBP). This could change as a landmark peace deal between the Philippine government and Muslim rebels helps revive the country’s south, after a 40-year conflict that displaced two million and stunted economic growth. In line with the agreement, the central bank is preparing dedicated Islamic banking rules. All these factors are rekindling interest from potential buyers for Al Amanah, said Francis Nicolas Chua, officer in charge of investment banking at DBP.
PH banks not ready for competition Manila Standard Today 28th Jul 2014
The Philippine Chamber of Commerce and Industry warned over the weekend the entry of foreign banks under a newly enacted law will threaten the viability of smaller local banks. “It is a threat to our own banking and financing system. Everybody says we have to open up but it’s pretty obvious that we still cannot compete. We’re at a loss here,” PCCI president Alfredo Yao said, referring to the recently signed Republic Act No. 10641. The new law, which amended Republic Act No. 7721, allows foreigners to own up to 100 percent of domestic banks and facilitate the entry of “established, reputable and financially sound foreign banks” in the Philippines. It also granted locally-incorporated subsidiaries of foreign banks “the same banking privileges as domestic banks of the same category.” Yao, who is also the chairman emeritus of Philippine Business Bank, said foreign banks would be tough to compete with, given their resources.
Maybank, CIMB rivalry extends to Philippines? Business World 27th Jul 2014
Maybank Philippines, Inc. said it is unfazed by the possible entry of rival CIMB Group Holdings Bhd into the Philippines, flagging that the country’s biggest lenders -- and not CIMB -- are its toughest competitors in the local market. “When they come in, it’s not like they’re going to be a threat to us,” Maybank Philippines President and CEO Herminio M. Famatigan, Jr. said in an interview Friday, referring to CIMB. “The market is so big. In fact, the threat will still come from the top, big [domestic] banks.” CIMB, Malaysia’s second-largest bank, has been more acquisitive than its bigger rival Malayan Banking Bhd (Maybank), with buyout plans extending beyond its Malaysian turf to include targets in the Philippines. A newspaper report last week said that talks on CIMB’s possible acquisition of state-controlled Al-Amanah Islamic Investment Bank of the Philippines have become “more serious” -- possibly serving as CIMB’s entry point here.
Pag-IBIG, PhilheaLth launch e-remittance, ePay systems Sun Star 27th Jul 2014
In accordance with RA No. 8792 also known as the Philippines Electronic Commerce Act of 2000, the Home Mutual Development Fund (HMDF) or Pag-IBIG Fund and the Philippine Health Insurance Corporation (PhilHealth) launched its e-remittance and ePay system during the National Competitiveness Council capacity building. This program aims to hasten the processing and to accommodate more transactions in both offices. Representatives from the National Government agencies, local government units, and owners of small businesses gathered during the launching last week at the Lim Ket Kai Luxe Hotel. Department of Trade and Industry (DTI) acting regional director Linda Boniao said that the e – remittance or the electronic remittance system will promote competitiveness and efficiency, something that government sectors should consider for the upcoming Asean integration.
Philippines' bank liberalisation increases investment appeal The Sun Daily 25th Jul 2014
The liberalisation of the banking sector in the Philippines has made the already attractive investment destination even more appealing, especially with word of new plans to restrict foreign ownership of local banks in the current preferred expansion market for banks in Indonesia. "We've been seeing a lot of foreign direct investment (FDI) in the Philippines, a lot of double-digit improvements in the FDI statistics for the Philippines this year as the government remains committed to improving the infrastructure for the Philippines and the past few years of good growth has enhanced its reputation as well," Standard Chartered Bank's Singapore-based economist Jess Ng told SunBiz. He added that the Philippines received an investment grade rating last year by three (leading) rating agencies and there is increased optimism in the economy on the domestic and international front, though there are still some infrastructure bottlenecks that need to be addressed before growth limitations can be removed. "Having the banking sector liberalised is one good sign that a lot of these bottlenecks are being gradually removed one by one. The Philippines is attractive because it is still relatively undeveloped and there are a lot of opportunities."
Banking industry to face stiff competition Manila Times 24th Jul 2014
The newly enacted law liberalizing the banking industry “should” be a welcome respite to the abysmal economic and political news that we have been reading in the newspapers lately. The president signed into law Republic Act (RA) 10641, “An Act Allowing the Full Entry of Foreign Banks in the Philippines, Amending for the Purpose RA 7721”. The act was ratified on July 21, 2014. What are the implications of this new law to our banking, economic and business industries? Depending on the reactions of the concerned players in the banking sector, the entry of foreign banks to the country is an indication of stability, or at least a good perception of our banking and finance environment. Or at least, the thrust of the law is to promote equal opportunity for the banking sector that would hopefully induce a more conducive business environment. The law allows up to 100-percent ownership of domestic banks by foreigners and the liberalized entry of overseas banks and financial institutions into the country.
Food & Agriculture
Glenda’s damage to agri tops P8B Manila Times 30th Jul 2014
The estimated damage caused by Typhoon Glenda to the country’s agriculture has ballooned to P8.313 billion, with 95,324 farm hectares in eight regions affected, the Department of Agriculture (DA) said in a report released on Wednesday. Just this Sunday, the typhoon’s damage to infrastructure, including school facilities and agriculture, was reported to have reached P7.33 billion, based on figures released by the National Disaster Risk Reduction and Management Council (NDRRMC). According to the latest estimates, the fisheries sector sustained the biggest losses at P5.156 billion. Aquaculture facilities and fish cages in Regions 3, 4A and 5 —particularly those in Laguna de Bay and Taal Lake—were completely washed out by the strong winds and flooding brought in by Glenda last week. Losses to the rice sector amounted to P988.533 million, or 48,622 metric tons of palay crops in 50,999 hectares affected. Of the total area in the path of the typhoon, some 33,595 hectares still have a chance of recovery since majority were still in the vegetative stage, the DA said.
As poverty rises, fewer go hungry Manila Times 29th Jul 2014
FEWER Filipino families went hungry in the second quarter even as more claimed to be poor, the Social Weather Stations (SWS) said in a new report. Results of a June 27-30 nationwide survey found 16.3% of the respondents -- equivalent to an estimated 3.6 million households -- saying they had experienced having nothing to eat in the past three months. This was 1.5 points below the 17.8% (estimated 3.9 million families) seen in March and 3.2 points below last year’s 19.5% annual average, the SWS noted. Moderate hunger -- experiencing having nothing to eat “only once” or “a few times” in the last three months -- fell by 1.5 points to 13.5% or an estimated 3.3 million households. Severe hunger -- having gone without food “often” or “always” -- stayed at 2.8%. Earlier this week, the SWS reported that 55% (est. 12.1 million families) of the respondents in the same June survey claimed to be poor, up from the 53% (est. 11.5 million families) recorded three months earlier.
FDA readies for online permit applications Business World 29th Jul 2014
Applications for Food and Drug Administration (FDA) licenses and product registration may be filed online starting September, an official here announced last Monday. Estrellita B. Pastolero, officer-in-charge of the Public Assistance, Information and Receiving (PAIR) Unit of FDA, said the system is currently limited to applicants from the National Capital Region and Calabarzon, but will be expanded for applicants nationwide. “As part of our Phase 3 of development since our mandated reform within the organization, online registration will be open to the rest of country,” Ms. Pastolero said in a dialogue with Cebu importers and manufacturers last Monday on reforms being implemented by FDA. Established on Oct. 1 last year, PAIR handles the filing and receiving of registration, licensing and other applications using the integrated application form on the FDA Web site. Among these are the License to Operate (LTO) and Certificate of Product Registration (CPR).
DTI to finalize nine industry road maps this year Phil Star 28th Jul 2014
The drafts for nine industry road maps, with seven focused on food, are expected to be ready within the year, the Department of Trade and Industry (DTI) said. Trade Assistant Secretary Rafaelita Aldaba told reporters that nine industry road maps covering carrageenan, condiments, cacao and chocolates, processed shrimp, processed meat, processed fruit focused on mangoes, processed fish, IC design and shipbuilding are being crafted.
Philippines opens doors to some U.S. vegetables Capital Press 23rd Jul 2014
The country has formally opened its market to U.S. celery, lettuce and cruciferous vegetables like broccoli and cauliflower, with shipments of those crops expected to hit $1 million within two years, according to USDA. Only producers in California and Arizona can take advantage of the agreement for now, but other states can be included in the deal if they provide sufficient data on pest risks, according to the agency’s Foreign Agricultural Service.
Crop losses force gov’t to increase rice imports Business World 23rd Jul 2014
The Philippines will hold a tender next month to buy an extra 500,000 tons of rice to increase its thin stockpiles after a typhoon damaged crops last week, in a move that could underpin export prices in key producers such as Vietnam. The additional demand will bring the country’s total imports this year to nearly two million tons, the highest in four years, putting the Philippines on track to become one of world’s top three buyers of rice. “We have agreed that we will import an additional 500,000 metric tons of rice,” Francis N. Pangilinan, who took over as food security chief in May, told local radio. “There will be a tender and (the shipment) is expected to come in by end of August, first week of September.”
Philippines to Import Another 500,000 Tons of Rice in 2014 through Open Tender Oryza 23rd Jul 2014
The Philippines National Food Authority (NFA) Council has approved import of another 500,000 tons of rice this year to replenish the country's rice stocks amid huge withdrawals due to losses brought about by Typhoon Glenda last week, according to local sources. Presidential Assistant for Food Security told local sources that the additional 500,000 tons of rice would be imported through an open tender, which would be held on August 12, 2014 and for delivery in the first half of September 2014. He noted that the government hiked its latest importation plan to 500,000 tons from 200,000 tons following devastation by Typhoon Glenda. The new imports would be over and above the initially planned 800,000 tons imports from Vietnam, which are likely to fully arrive by the end of August 2014.
Health & Life Sciences
RH gets P3.27-B budget for 2015; Metro Manila gets P2.6B Inter Aksyon 31st Jul 2014
Reproductive health will get a P3.274-billion funding under the 2015 proposed budget submitted by Malacanang to Congress. The amount was lodged under the item Family Health and Responsible Parenting to be implemented nationwide by the Department of Health (DoH). The DoH is the sixth top agency that will get the bulk of the appropriation next year, with a P102.17-billion budget, up from its P87-billion budget this year. The Supreme Court recently upheld the constitutionality of the Reproductive Health law, paving the way for its full implementation. Of the P3.274-billion proposed budget, P2.664 billion will be for the implementation of the program in the National Capital Region. The DoH also set aside P3.336 billion for the Expanded Program on Immunization; P1 billion for TB control; and, P743.91 million for Other infectious diseases and emerging and re-emerging diseases, including HIV/AIDS, dengue, food and water-borne diseases.
16 new cases of HIV now reported daily, DOH warns Inquirer 30th Jul 2014
Sixteen new cases of human immunodeficiency virus (HIV), which could lead to the fatal Acquired Immune Deficiency Syndrome (AIDS), are reported everyday, according to the Department of Health (DOH). Dr. Eric Tayag, chief of the DOH National Epidemiology Center, said the number of cases reported daily increased from only 12 cases a day in 2013. Data from the Philippine HIV and AIDS Registry showed that for the month of June, 494 new HIV cases were reported, a 15-percent increase from figures seen in the same period last year. Out of the 494 new cases, 42 were already full-blown AIDS, the DOH said. The number of new cases brought to 2,814 the total reported HIV cases from January to June 2014, and to 19,330 from 1984 to 2014.
Tablets vs. Paper: How the Philippines Halved the Cost of Healthcare Delivery Asia Pacific Future Gov 30th Jul 2014
A project in the Philippines has reduced the cost of collecting healthcare information and delivering public health messages to the poorest families by almost half over five years, a university study has found. FutureGov caught up with Mary Rose Rontal, Health Innovations Programme Manager at ACCESS Health International-Philippines, to uncover the story behind the success of the project: e-Action for Universal Healthcare Coverage. ACCESS, a non-profit think tank, has trained the government’s community health teams to collect health information on families using tablets, replacing paper forms which they had been using since 2011. The health workers can now use a mobile and web app to summarise the data collected and automatically generate reports. The City Health Office can also directly access the reports online and share them with other government agencies.
DOH, DOST to improve access to health information Rappler 28th Jul 2014
Inaccessibility of health care services and information, especially those in rural areas, is one of the perennial problems of the country’s health sector. To address this, the Department of Health (DOH) partnered with the Department of Science and Technology (DOST) to create a platform that will allow better access to health services, facilties and information. The two agencies introduced the Philippine Health Information Exchange, a system that basically allows easy access to health information from the national to the barangay level, during an e-health forum held Saturday, July 26. The forum, which was part of the 2014 National Science and Technology Week at the SMX Convention Center in Pasay City, also served as a venue to discuss possible ways to improve the health sector of the country through technology.
A Philippine oasis for HIV/AIDS patients Al Jazeera 27th Jul 2014
A cramped office on a four-storey rundown building in one of the Philippine capital's crime-ridden neighbourhoods serves as an unlikely oasis for people living with HIV/AIDS in Asia's Catholic stronghold that has emerged as a critical hot spot for the disease. Gaunt elderly men and women shuffle up its dark staircase to reach the Positive Action Foundation Philippines, a non-sectarian, non-profit organisation manned by HIV-positive personnel who provide not only care and support, but also listening ears, to those who have no one else to turn to in a society where some sectors remain doggedly conservative. "It is important that we try and give them a positive outlook," said Roberto Ruiz, a 50-year-old former hotel and club manager who has been living with AIDS for over two decades and who cofounded the foundation in 1999. "Many of those who come in here are from far away provinces and who have no other place to stay. The majority have not come out yet in their own communities, while there are others who are abandoned by their relatives and friends."
ICT
NTT Communications and PLDT to Provide Philippine Companies with Enterprise Cloud Wall Street Journal 28th Jul 2014
NTT Communications Corporation (NTT Com), the ICT solutions and international communications business within the NTT Group, announced today a partnership with the Philippines' largest telecommunication company, Philippine Long Distance Telephone Company, to provide PLDT's enterprise customers with NTT Com's enterprise-grade, infrastructure as a service (IaaS) solution, Enterprise Cloud. Commercial services are scheduled to begin in or after September.
Redesign of telecom network key to climate change response Interaksyon 28th Jul 2014
Smart Communications Inc said it has strengthened its network infrastructure to provide vital communication services even during extreme weather disturbances. During a conference hosted by the Partnerships for Disaster and Climate Resilience on Tuesday, Smart head of technology Rolando G. Peña said the company has redesigned its cell towers to withstand stronger winds. Furthermore, the company has deployed super-sized base stations with back-up power systems to cover wider areas. Smart has also adopted an overlapping umbrella network coverage deployment strategy in heavily populated areas so subscribers will have contiguous signal even if some base stations go down. If a base station goes down temporarily, nearby base stations have the capability to compensate for and boost signal so that service disruption experienced by subscribers is kept to minimum.
PH firms out for a slice of $100M US tech venture capital Philippine Daily Inquirer 28th Jul 2014
A group of venture capitalists led by US-based business accelerator 500 Startups is raising $100 million to be invested in startups around the world, the Philippines included. The group is currently in Manila for an investment mission. As part of the group’s drive to find innovative entrepreneurs in need of technical and financial support, more than 30 geeks would join the “Geeks on a Plane” tour in Manila from July 23 to 26 to learn more about the local market and what startup opportunities may be invested in. The Geeks on a Plane tour would also be making stops in Singapore, Bangkok and Jakarta.
NTT Com to wholesale IaaS through PLDT Business Cloud News 28th Jul 2014
The ICT solutions arm of Japanese incumbent operator NTT, NTT Com, announced that it has won a deal which will see the company wholesale its infrastructure as a service platform to Philippines’ largest telco, Philippine Long Distance Telephone Company (PLDT). PLDT will offer NTT Com’s cloud platform to enterprise customers in conjunction with its networking services. The deal was announced by Eric R. Alberto, executive vice president and head for enterprise, International and Carrier Business at PLDT, and Ken Kusunoki, senior vice president and head for fifth sales division at NTT Com in Tokyo on Monday.
Gov’t agencies encouraged to embrace ICT Philippine Information Agency 28th Jul 2014
Government agencies were encouraged by Civil Service Commission (CSC) Chairperson Francisco T. Duque III to embrace information and communication technology (ICT) in providing services to the public. Owing to the progress and advancement in technology, particularly ICT, we have really to embrace and incorporate it in the way we operate our services and offices in providing much-needed services and interacting with clientele, said Duque. The CSC chairperson led the recent conferment here of the Citizen’s Satisfaction Center Seal of Excellence award to six government agencies in Western Visayas doing frontline services which garnered a rating of Excellent during the conduct of the Anti-Red Tape Act (ARTA) Report Card Survey in 2013.
NTT, PLDT offer Enterprise Cloud for Philippine companies TelecomPaper 28th Jul 2014
NTT Communications (NTT Com), the global data and IP services arm of NTT, has signed a partnership agreement with Philippine Long Distance Telephone (PLDT). Under the terms of the deal, NTT Com will provide PLDT's enterprise customers with NTT Com's enterprise-grade, infrastructure as a service (IaaS) platform dubbed ‘Enterprise Cloud’. Commercial services are scheduled to begin in or after September.
DOST leads govt’s launch of own fiber optic network Philippine Information Agency 25th Jul 2014
The government is scheduled to formally launch Friday (July 25) the fiber optic network currently in the final stages of development at the ongoing National Science and Technology week organized by the Department of Science and Technology (DOST) at the SMX Convention Center. Government operations can expect a significant improvement in their operations and the delivery of their services with the use of fiber optic technology and systems currently being developed under the Integrated Government Philippines (iGovPhil) project of the Information and Communications Technology Office (ICT Office) and the Advanced Science and Technology Institute (ASTI) of the DOST.
PH eyed as tech hub – USAID Manila Times 24th Jul 2014
The Philippines’ potential as an emerging technology hub in the region took center stage this week as the “Geeks on a Plane” tour arrived in Manila, introducing the country to a diverse group of primarily US-based venture capitalists, startup founders, and technopreneurs. The “Geeks on a Plane” (GOAP) tour is led by the venture capital firm 500 Startups, recently cited by the Wall Street Journal as one the most active venture capital funds in Silicon Valley, and is supported by the United States Agency for International Development (USAID) through its Science, Technology, Research and Innovation for Development (STRIDE) Program. 500 Startups is leading the worldwide tour of tech hotspots as part of its effort to raise $100 million in venture capital funding for startups around the world, including the Philippines. In a press briefing, the head of USAID’s STRIDE Program, David Hall, explained: “We look at the country as a whole, [and] when you look at the developmental sense as a nation, [the Philippines] is in particular position in the world, and I think we take that into account as well. There is no shortage of smart people with good ideas, but their experience is different from people in Europe or in North America, so I think that is why the Philippines needs a little bit of a boost.”
Gov’t e-services to align with ASEAN integration Philippine Information Agency 24th Jul 2014
The online or e-services of the government do not only ease the doing of business in the country, but promote reforms and make the country competitive especially with the Association of South East Asian Nations (ASEAN) integration in 2015. This was stressed by the Department of Trade and Industry (DTI) OIC regional director Linda Boniao during the National Competitiveness Council (NCC) of the Philippines’ Capacity Building program in Cagayan de Oro on July 23. Various participants from the Local Government Units (LGUs), Micro, Small and Medium Enterprises (MSMEs), academe, National Government Agencies (NGAs) and even the Information Communications Technology (ICT) sector of the region attended.
More govt agencies now use cloud computing Interaksyon 24th Jul 2014
Twenty government agencies are now using the Government Cloud, and more are expected to use to platform according to the Department of Science and Technology’s Integrated Government Philippines (iGovPhil). In a press release, iGovPhil said that interest in their cloud services among government offices “has been growing.” The increasing interest, iGovPhil noted, has also been spurred by the recent move of the Department of Budget and Management to cut back on agencies’ IT costs.
PH seeks to become global center for smarter analytics Manila Times 23rd Jul 2014
The Philippines is working to become the global center for smarter analytics, a multi-billion dollar business of analyzing and simplifying data for businesses to spot opportunities, which industry practitioners say offers a very promising career for Filipino professionals. Eric Riego de Dios, human resources director of Baker & McKenzie Global Services Manila, said the country is already taking steps to attain this goal. “The country takes a stab at becoming the global center for smarter analytics,” de Dios said during the Asia HR Summit 2014 held in Makati City on Wednesday, adding that the career that analytics will open for Filipino professionals is “very promising.” In the growing business of analytics, de Dios said human resource practitioners have a very important role to play. International Data Corp. (IDC) has predicted that the market for big data will reach $16.1 billion in 2014.
PH Internet slowest in Asean The Inquirer 28th Jul 2014
“Even if the price there and here are nearly the same, the speed there is very different than here,” Pendon said. Both could not help but accept the sad fact of the slow internet in the Philippines, which has the slowest average speed in the Association of Southeast Asian Nations (ASEAN), according to the crowd-sourced Net Index (www.netindex.com) rankings by internet broadband testing company Ookla. President Benigno Aquino III acknowledged this in a speech at the opening of the Convergys San Lazaro branch in Manila on September 3, 2010. “Investors will invest more if we address factors like the expensive cost of power and bandwidth problems,” Aquino said. He ordered then Commission on Information and Communication Technology (CICT) chair Ivan Uy to “ensure that telecommunication companies upgrade the technology they provide, while ensuring that these investments do not result in prohibitive data costs.” Ten months later, President Aquino issued Executive Order No. 47 which placed the CICT under the Department of Science and Technology (DOST) and renamed it the ICT Office (ICTO). The DOST also unveiled a five-year Philippine Digital Strategy (PDS) which was formulated by the CICT. DOST Secretary Mario Montejo described the PDS as the “ICT road map.”
Infrastructure
Abaya vows to award P64.9-billion LRT1 extension deal by Friday Business Mirror 30th Jul 2014
HE government committed to award the P64.9-billion Light Rail Transit Line (LRT) 1 Cavite Extension deal to the consortium of the Metro Pacific Investments Corp. (MPIC) and Ayala Corp. by the end of the week, and vowed to clear all obstacles for the on-time completion of the key transport infrastructure. “We will award [the contract] by Friday,” Transportation Secretary Joseph Emilio A. Abaya said in a forum on Wednesday with officials and staff of the ALC Media Group, which includes the BusinessMirror, Philippines Graphic, DWIZ and Pilipino Mirror. This development is crucial as the project would effectively aid the government in plugging gaps in the country’s transportation infrastructure. The Philippines, now a $270-billion economy, is lagging behind its neighbors in terms of modernizing its transportation facilities; and the government plans to address that by rolling out massive infrastructure projects such as this railway-expansion venture.
P122.8-billion PPP deal to be rolled out next week Business World 30th Jul 2014
THE GOVERNMENT will roll out its biggest public-private partnership (PPP) project yet next week, a Public Works department official said. “The DPWH (Department of Public Works and Highways) will publish an invitation to bid for the Laguna Lakeshore [Expressway] Dike on August 3, Sunday and make available to interested parties the pre-qualification bid documents on August 4, Monday,” said Ariel C. Angeles, a member of the department’s Special Bids and Awards Committee, yesterday. The National Economic and Development Authority Board approved the P122.8-billion project for rollout last month and Public Works Secretary Rogelio L. Singson has said that it would be bid out this December. A concession is expected to be granted by March 2015, with the project to start late that year and finish in 2121. The Laguna Lakeshore project involves the construction of a 47-kilometer flood control dike, on top of which will be a six-lane expressway. It will be adjacent to the western shoreline of Laguna Lake, start in Taguig, pass through Muntinlupa and Calamba, and end in Los Baños.
State spending for next two years seen focused on a few key initiatives Business World 29th Jul 2014
PRESIDENT Benigno S.C. Aquino III’s latest State of the Nation Address (SONA) could lay the fiscal groundwork for the next two years, Citi Research yesterday said, with the government likely to focus on a few key initiatives. In a note released a day after the SONA was delivered, the research arm of Citigroup Global Markets, Inc. said the president’s speech “probably laid the basis for fiscal expansion during the remainder of [Mr.] Aquino’s term whether or not it leads to a fiscal deficit ratio of 2% of GDP.”
State of motoring affairs The Inquirer 29th Jul 2014
Aquino cited the Department of Public Works and Highways as building, repairing and widening an additional 12,184 kilometers of roads since he assumed office in 2010. And these were just national roads. The Philippines, according to the CIA World Factbook, ranks 25th in the world in terms of the extensiveness of its road network, with a total of over 217,400 km of roads as of 2012. But what about the new vehicles added to Philippine roads? In 2013 alone, the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi)/Truck Manufacturers Association (TMA) and the Alliance of Vehicle Importers and Distributors Inc. (Avid) reported sales of 212,281 units. After showing a phenomenal 24.9-percent increase in sales for the first six months of 2014 (108,957 units) compared to the same period in 2013 (87,228), Campi confidently forecast vehicle sales to hit 250,000 units by end of 2014. Given these soaring numbers, what can the motoring public expect from the industry in the coming months? Inquirer Motoring asked key automotive personalities. The time is ripe for the Lemon Law to balance consumer protection with rights of auto importers, distributors and manufacturers.
Economy, aviation industry ‘ready for takeoff’ – Aquino Manila Times 29th Jul 2014
THE Philippines aviation industry is ready for takeoff, announced President Benigno Aquino 3rd in his fifth State of the Nation Address (SONA) on Monday. During his speech, Aquino said that the US Federal Aviation Administration’s (FAA) restoration of the country’s aviation safety to Category 1 should pave the way for the country to attract more tourists and investors into the Philippines which would help boost the economy and create jobs. “Our economy and our country are indeed taking off, and we are already realizing even greater aspirations. We inherited a seemingly grounded aviation industry: significant safety concerns had been issued on the Philippines by the International Civil Aviation Organization, or ICAO; we were downgraded by the United States Federal Aviation Administration; and the European Union implemented restrictions against our local carriers,” Aquino said. But in 2013,” ICAO lifted the significant safety concerns it had previously issued for the Philippines,” he said. “This was followed, in the same year, by the European Union lifting the ban on Philippine Airlines, allowing it to fly once again to Europe—which means that Filipinos will be able to fly directly from Manila to London.”
Infrastructure buildup said needed to keep growth momentum Business World 29th Jul 2014
“The next wave of economic development is going to be about soft infrastructure, intellectual capital and services,” Brian Murray, chief economist and head of research of AIA Group Ltd., said in a press conference. Mr. Murray, who was among the speakers during an investor forum organized here by Philam Asset Management, Inc. (PAMI) on Friday, said investments in “soft” infrastructure such as education and health care should be on top of the hard infrastructure projects being executed. He lauded the government’s public-private partnership program (PPP), saying it is “exactly what the Philippines needs in terms of providing the basis for long-term economic growth.” The government has rolled out seven PPP projects cumulatively worth P62.6 billion as of June. However, Mr. Murray said the government should accelerate the rollout of PPP projects or risk losing the country’s competitive edge over other Southeast Asian countries, which are also implementing infrastructure projects.
Infrastructure tops wish list of investors The Inquirer 28th Jul 2014
Sustained reforms in infrastructure, energy, governance and investment climate continued to top the so-called “wish list” of local and foreign business groups, which are looking forward to hear what President Aquino will prioritize in the remaining two years of his term. While the wish list issued by the Philippine Chamber of Commerce and Industry (PCCI), the Makati Business Club, the Philippine Exporters Confederation Inc. (Philexport), the Employers Confederation of the Philippines (Ecop), the American Chamber of Commerce of the Philippines (Amcham) and the European Chamber of Commerce of the Philippines (ECCP) all rallied for practically the same issues they have raised in the past Sonas, a foreign chamber had warned against a “lame duck situation” as this could undermine the gains seen in first four years of the Aquino administration. John D. Forbes, senior adviser at Amcham, explained in an interview that such a situation meant that as people leave the government, “there’s not much legislation, there is a loss of political will and the energy at the beginning of the administration is gone.”
PNoy cites infrastructure deals under PPP program GMA News 28th Jul 2014
President Benigno Aquino III on Monday extolled the numerous infrastructure projects the government was able to start and finish under the Public-Private Partnership (PPP) program as proof that his administration’s good governance yields prosperity. In his State of the Nation Address, Aquino said his administration was able to sign and award seven PPP projects worth P62.6 billion from December 2011 to June 2014, which is more than the six solicited PPP initiatives inked in the past three administrations. According to an earlier report, the seven PPP deals awarded by the Aquino administration are: Daang Reyna-Daang Hari connector road to the South Luzon Expressway 9,300 school buildings under Phase-1 PPP for School Infrastructure Project 10,679 school buildings under Phase-2 PPP for School Infrastructure Project Philippine Orthopedic Center modernization Elevated expressway access to Ninoy Aquino International Airport Terminals I, II and III Metro Rail automated, integrated ticketing Three inter-modal mass transportation terminals at the outskirts of Metro Manila. The PPP program was launched by the Aquino administration in 2010 as a way to boost the Philippines’ decrepit infrastructure, considered a major bottleneck in attracting foreign direct investments. Aquino said that if before, the government had to offer corporations incentives to invest in the country, now businesses compete with each other for the chance to build infrastructure projects.
SMEs hobbled by high power cost The Inquirer 25th Jul 2014
The competitiveness of the country’s small- and medium-sized enterprises (SMEs) remains undermined by critical factors, such as the high cost of power and logistics, as well as inadequate transport infrastructure, which have been discouraging many firms from tapping the potential opportunities in an integrated regional economy. Alfredo M. Yao, president of the Philippine Chamber of Commerce and Industry (PCCI), said in a workshop on Thursday that there was a considerable level of awareness on the tariff implications of the economic integration of the Association of Southeast Asian Nations (Asean) and the other free trade agreements that will go along with it. However, the desire to embrace the potentials of the Asean Economic Community (AEC) was deemed “meager” because of concerns on the level of competitiveness of local industries against those of Asean neighbors, Yao said.
Next government to inherit fewer PPP headaches Business World 25th Jul 2014
A legislative measure meant to end the problems that dogged President Benigno S.C. Aquino III's key infrastructure program is expected to be passed by Congress by the first semester of 2015, an official of the Public-Private Partnership (PPP) Center said. A successful passage of that law -- sponsored by Mr. Aquino's key allies in Congress -- may prove to be of little use to a presidency left with only a few months in office by then, but still, Mr. Aquino would be leaving a framework that will help the next government pick up from where he left off, and with fewer headaches.
NAIA-3 finally ready for full operations – DOTC Manila Times 24th Jul 2014
Seventeen years after the Department of Transportation and Communications (DOTC) awarded the concession agreement for the Ninoy Aquino International Airport (NAIA) Terminal 3 project, the modern passenger terminal building may finally be ready for full airline operations on July 31. “We are extremely pleased to confirm that full airline operations will begin at NAIA Terminal 3 next week. Our gateway airport will now be able to welcome 3.5 million more passengers with modern facilities every year, and Terminal 1 will now be considerably decongested to improve passenger convenience,” DOTC Secretary Joseph Emilio Abaya said in a statement. “The Manila International Airport Authority (MIAA) has informed us that Delta Airlines will have its first flight out of Terminal 3 on August 1, while KLM Royal Dutch Airlines will move within the first week of August. Singapore Airlines, Emirates, and Cathay Pacific will follow suit by the end of next month. These five carriers have the highest volume of international flights coming into and out of NAIA, so we look forward to giving them a new home,” Abaya added.
Manufacturing
PH aerospace industry sees itself a $1.4B OEM hub by 2022 Manila Times 25th Jul 2014
The Philippines is positioning itself for a broader role in the global aviation industry as a major hub for the manufacture of original equipment manufacturer parts (OEM) and allied services for the commercial aircraft sector. The local aerospace manufacturing industry sees its revenues growing to $1.429 billion by 2022 from $385 million in 2013. As it continues to build international capability and expand markets with government support, the industry expects to generate an additional 8,300 jobs by that year, an increase of 350 percent from the 2,200 jobs recorded in 2013. These were the projections made by the Aerospace Industries Association of the Philippines (AIAP) as it and the Electric Vehicle Association of the Philippines (EVAP) presented their respective industry roadmaps to stakeholders during the 9th Trade and Industry Development (TID) Updates held July 24 at the Board of Investments in Makati. “The Aerospace Manufacturing Industry Roadmap proposed the long-term goal of establishing the Philippines as a major hub for manufacturing of original equipment manufacturer parts and allied services like maintenance, repair and operations (MRO) for the global commercial aircraft industry,” AIAP director Willie Estoque said during the presentation.
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