| Regional Affairs
Philippines will likely bring up territorial dispute during summit in Malaysia Business World 7th Apr 2015
MANILA will likely bring up its territorial dispute in the West Philippine Sea during the Association of Southeast Asian Nations (ASEAN) Summit in Malaysia three weeks from today, a Palace official said. On Monday, Communications Secretary Herminio B. Coloma said that the issue is expected to be brought up by President Benigno S. C. Aquino III, during the 26th ASEAN Summit in Kuala Lumpur and Langkawi, Malaysia from April 26 to 28, 2015.
U.S. Admiral Warns China Reclamation Causing a ‘Lot of Concern’ Bloomberg 31st Mar 2015
(Bloomberg) -- China’s creation of more than four square kilometers (1.5 square miles) of artificial islands in the South China Sea is increasing tensions with the U.S. and its allies, according to Pacific Fleet Commander Harry Harris. “What’s really drawing a lot of concern in the here and now is the unprecedented land reclamation currently being conducted by China,” Admiral Harris told a conference Tuesday in Canberra. “China is building artificial land by pumping sand on to live coral reefs –- some of them submerged -– and paving over them with concrete.” China, alongside a number of Southeast Asian nations, contests parts of the waters that house some of the world’s busiest shipping lanes. The Philippines has accused China of undertaking large-scale reclamation work on contested reefs, including the building of airstrips.
National Affairs
‘Hardliners win without Muslim autonomy law’ Business World 7th Apr 2015
The largest Muslim guerrilla group in the Philippines warned on Tuesday that hardliners would stand to gain if legislators failed to pass a law granting Muslims autonomy as part of a peace deal under threat because of recent fighting. Forty-four police commandos, 17 rebels and four civilians were killed in a Jan. 25 clash in the South of the largely Christian country that has cast doubt over talks with the Moro Islamic Liberation Front (MILF) after lawmakers suspended work on a law creating an autonomous Muslim area. “People will think that we failed them, the radicals can gain legitimacy on their political line. We don’t want it to happen,” chief MILF negotiator Mohagher Q. Iqbal told reporters. “It is normal in any organization to have minority view and we don’t want this group to prevail if we cannot get this law,” he said, urging lawmakers to resume work on the autonomy law.
Diplomatic Access: The Philippines The Diplomat 1st Apr 2015
For spring 2015, The Diplomat presents “Diplomatic Access,” a series of exclusive interviews with ambassadors from the Asia-Pacific region. By talking to these diplomats, we’ll give readers a sense of each country’s perspective on various regional economic and security trends — from TPP to the Silk Road Economic Belt; from the South China Sea disputes to the Islamic State. In this interview, His Excellency Jose L. Cuisia, Jr., Ambassador of the Philippines to the U.S., discusses the South China Sea, U.S.-Philippines relations, and the Bangsamoro peace deal.
In the national interest Business World 30th Mar 2015
The BBL defines its own territorial sea; refers to ancestral domain by birth to assert the ‘right to self-determination’ and self-governance to ‘pursue their economic, social and cultural development.’ The MILF desires an asymmetric (i.e., irregular or indirect or not subordinate) relationship with the government. It has a foreign policy provision normally found in a constitution. Although the term “independence” is studiously avoided, it is the goal. It confirms what the late-MILF Chairman Hashim Salamat used to say, “We are Moros, not Filipinos. Our aim is independence.”
Court of Appeals denies bid to stop proceedings on Binay suspension Business World 30th Mar 2015
The Court of Appeals Sixth Division denied the government’s bid to stop the court proceedings on the Office of the Ombudsman’s assailed six-month preventive suspension order issued against Makati City Mayor Jejomar Erwin “Junjun” S. Binay, Jr. In a Monday hearing, the three-member division led by Associate Justice Jose C. Reyes, Jr., junked the motion by government lawyers to suspend court proceedings in light of their pending petition before the Supreme Court, which contested the temporary restraining order (TRO) issued by the appeals court against the preventive suspension on March 16.
Aquino signs law freeing women from 301-day rule Manila Bulletin 28th Mar 2015
President Aquino has signed a law repealing the crime of premature marriage in the country. Republic Act 10655 nullified a Revised Penal Code provision that penalizes widows who marry within 301 days after the death of their husbands. The measure also covers women whose marriages have been annulled or dissolved, if she marries before the expiration of the period of 301 days after her legal separation. “Without prejudice to the provisions of the Family Code on paternity and filiation, Article 351 of Act No. 3815, otherwise known as the Revised Penal Code, punishing the crime of premature marriage committed by a woman is hereby repealed,” the law read.
Aquino makes another pitch for Bangsamoro law as he races to meet bill’s deadline Business World 27th Mar 2015
President S.C. Aquino III on Friday made another pitch for a proposed law that will allow Moros to govern themselves as he struggles with the aftermath of a bloody police operation that has delayed the bill’s passage. Delivered to coincide with the first year anniversary of the signing of the Comprehensive Agreement on the Bangsamoro (CAB), Mr. Aquino’s speech underscored the necessity of the proposed Bangsamoro Basic Law. The piece of legislation was drafted to bring peace in war-torn Mindanao, unlock the island’s economic potential, and address the centuries’ old inequality suffered by Muslims, which comprise a tenth of the population and is considered as the poorest Filipinos.
Scouring far and wide for reform-minded successor Business World 27th Mar 2015
President Benigno S.C. Aquino III may endorse a successor from outside his own Liberal Party as he struggles to find a popular candidate who can continue his economic reforms. The ruling party could name its candidate for 2016 elections from a coalition of at least five other parties, Mr. Aquino, 55, said on Wednesday in an interview at the presidential palace in Manila. Mr. Aquino, who is limited by law to a single term, joined with those parties in Senate elections in 2013. “We represent the entire coalition that has banded together,” Mr. Aquino said. “We’re hoping to keep that group united behind a single candidate to ensure victory and therefore promote continuity,” he said, adding the group plans to announce its candidate by June.
Tagle, Ayala lead citizens’ council on Bangsamoro Rappler 27th Mar 2015
MANILA, Philippines (UPDATED) – On the first anniversary of the signing of the Comprehensive Agreement on the Bangsamoro (CAB), President Benigno Aquino III announced his latest move to continue his administration’s push for peace in Mindanao: a council of leaders to scrutinize the proposed Bangsamoro law and explain it to the public. On Friday, March 27, Aquino said the council will be “independent” and would be made up of “citizen leaders” with “wisdom and integrity.” The council, he said, will convene a National Peace Summit that will address issues concerning the Bangsamoro Basic Law (BBL).
Bloomberg TV to launch Philippine channel Rappler 26th Mar 2015
Manuel V. Pangilinan expands his media empire anew.The Pangilinan-led MediaQuest Holdings’ TV5 and Cignal Digital TV signed a deal with Bloomberg, the American-based international cable and satellite news network, on Wednesday, March 25. To be called Bloomberg Television Philippines, the local channel will be the first 24/7 business news channel in the country, with a target launch this 2015. “This partnership with Bloomberg heralds a new era in Philippine television, in which business information is set to be in the front and center of a rising Philippine economy,” said Pangilinan in a statement released by Bloomberg.
Aquino Widens Net for 2016 Presidential Race as Popularity Falls Bloomberg 25th Mar 2015
Philippine President Benigno Aquino may endorse a successor from outside his own Liberal Party as he struggles to find a popular candidate who can continue his economic reforms. The ruling party could name its candidate for 2016 elections from a coalition of at least five other parties, Aquino, 55, said on Wednesday in an interview at the presidential palace in Manila. Aquino, who is limited by law to a single term, joined with those parties in Senate elections in 2013. “We represent the entire coalition that has banded together,” Aquino said. “We’re hoping to keep that group united behind a single candidate to ensure victory and therefore promote continuity,” he said, adding the group plans to announce its candidate by June.
Customs
Customs changes rules on taxation of international relief donations Business World 1st Apr 2015
THE BUREAU of Customs (BoC) has amended its rules on international donations during periods of calamity, modifying the tax and duty regime for various classes of recipient. National government agencies receiving such goods will be liable for duties and taxes while donors will be exempt. For organizations registered and accredited by the Department of Social Welfare and Development, imported goods are taxable but duty-exempt if the procedures set by the BoC are followed.
Imports down 14% in January Philippine Star 26th Mar 2015
The country’s merchandise imports declined 14 percent in January this year from a year ago amid a contraction in payments for mineral fuels and lubricants, as well as capital and consumer goods. According to data from the Philippine Statistics Authority, the country’s merchandise imports fell to $5.1 billion in January this year from $6 billion in the same month last year. The latest result is a reversal of the 0.4-percent year-on-year growth posted in December 2014, and 24.7-percent expansion in January 2014. The National Economic and Development Authority (NEDA) attributed the lower imports result to the reduced payments for mineral fuels and lubricants, capital goods, and consumer goods in January of this year.
Customs IT project facing more woes Manila Standard Today 25th Mar 2015
The auction for the computerization of the Bureau of Customs’ system is mired in more controversies. Customs watchers are raising questions over the capability of the lone remaining bidder in the P650-million computerization project, Omni Prime Marketing and foreign partner Intrasoft of Greece. Filings with the Securities and Exchange Commision show that the Philippine partner, who will enjoy 60 percent of the contract revenue, has maintained only three employees during the past few years. How, thus, can a P650-million government contract be executed by a company with only three employees and no creditble track record to speak of? The computerization calls for the design, implementation, operation and maintenance of an Integrated Customs Processing System and the bureau’s National Single Window. The project aims to achieve a fully electronic, paperless, man contact-free processing of Customs transactions and a single decision-making point for Customs release and clearance of cargo.
Defense & Security
Philippines, U.S. exercises near disputed sea not 'show of force' Reuters 7th Apr 2015
About 11,500 U.S. and Philippine troops will take part in annual military exercises this month near disputed waters in the South China Sea, the Philippine military said on Tuesday, while denying the drills were a show of force to China. The number of troops taking part in the exercises will be the largest since the allies resumed joint military exercises in 2000. The Philippine military said the joint exercises were not aimed at countering China, which has been undertaking land reclamation on tiny reefs and islands in the Spratly islands, which both allies say is a threat to peace and stability.
US, Philippines set to hold expanded war games Channel NewsAsia 6th Apr 2015
The United States and the Philippines will double the size of their annual war games this month, with some exercises to be staged close to a South China Sea flashpoint, the Filipino military said Monday (Apr 6). The 10-day exercises between the long-time allies will be held as fears grow in the Philippines that China is seeking to take control of the strategically vital and resource-rich sea. Nearly 12,000 soldiers will be involved in this year's edition in several locations in the Philippines, including a naval station directly facing the disputed waters, military spokesman Lieutenant Colonel Harold Cabunoc said.
FBI confirms militant Marwan's death in Philippine raid BBC News 2nd Apr 2015
The FBI has confirmed that Marwan, a Malaysian militant, was killed in a raid in the Philippines in January. Marwan, also called Zulkifli bin Hir, was a leading figure in Islamist militant group Jemaah Islamiyah (JI). He was believed to have been killed in a raid in the southern Philippines earlier this year that left 44 police commandos dead, but this is the first formal confirmation of his death. The FBI said forensic evidence had proved conclusive. "After a thorough review of forensic data and information obtained from our Philippine law enforcement partners, the FBI has assessed that terrorism subject Zulkifli Abdhir [the FBI gives several versions of his name], also known as Marwan, is deceased," it said in a statement quoted by AFP news agency.
C-295 Can Be Configured for Maritime Patrol Defense Studies 1st Apr 2015
The Philippine Air Force (PAF) said on Monday its newly-acquired Airbus Military C-295 can be modified and fitted for maritime patrol work. "It is capable of being fitted with external fuel tanks and pods which can be equipped with sensors and surveillance equipment needed for maritime patrol work," PAF spokesperson Lt. Col. Enrico Canaya said in Filipino in an interview with the Philippines News Agency. This can be done by fitting pylons to the wings of the aircraft, he added. Aside from this, the C-295 is capable of staying aloft for 11 hours, making it an ideal maritime patrol platform. Meanwhile, turnover and commissioning ceremonies for the new aircraft on Monday were headed by Defense Secretary Voltaire Gazmin, Armed Forces chief-of-staff Gen. Gregorio Pio Catapang and Air Force head Lt. Gen. Jeffrey Delgado at Villamor Air Base in Pasay City.
US, Greek companies eye night fighting system deal Business World 31st Mar 2015
REPRESENTATIVES of companies from the United States, Turkey, Israel and Greece attended the pre-bid conference at the Department of National Defense (DND) office for the supply and delivery of a brand new Night Fighting System for the Philippine Army on Tuesday. Companies that bought bid documents worth P75,000 included United States-based Nightline, Inc.; local firm United Defense Manufacturing Corp. with its US-based associate Nivisys, LLC; Greek company Sensors S.A. with its local associate Intrade Asia Pacific Corp.; US-based Armasight Enterprises; US-headquartered Exelis, Inc.; Turkish firm Aselsan Turkey with its local associate System Nomics Philippines, Inc.; local company Spartans 3 Trading Corp.; and Israel-based Elbit Systems.
Airbus delivers military’s first C295 transport plane Business Mirror 30th Mar 2015
The military boosted its transport and mobility capabilities with the blessing and formal turnover on Monday of one of the three C295 medium lift fixed-wing aircraft ordered from European defense supplier Airbus Defence and Space. Top defense and military officials, led by Defense Secretary Voltaire T. Gazmin and the Armed Forces chief of staff, Gen. Gregorio Pio Catapang Jr., led the commissioning of the new aircraft. “Air transport has always been an essential part of our air operations in the military. It plays a key role in the operational readiness of the Air Force, especially in the movement by air of troops, and equipment and supplies,” Gazmin said in his speech. “Thus, the turnover of the Casa C295 before us now lends reality to the urgency of possessing this type of aircraft in the Air Force inventory,” he added.
AFP chief: Defense spending should be 1% of Phl budget The Philippine Star 30th Mar 2015
Armed Forces chief Gen. Gregorio Catapang Jr. is pushing for greater military spending, saying this would enable the country to defend its territory. Catapang said military expenditures should be increased to 1 percent of the national budget to enable the government to buy more equipment for territorial defense. “What is important now is for our country to become prosperous because our argument is maybe at least we increase our expenditure for our defense and military,” Catapang said in a press briefing on Monday. “What I’m proposing is that at least 1 percent of the approved national budget will go to the improvement of the capabilities of our defense and military units, to include the Office of Civil Defense,” he added.
Military gets first of three new transport airplanes Business World 30th Mar 2015
The C-295 twin turbo-prop military transport aircraft was acquired by the government from Seville, Spain-headquartered Airbus Defence and Space, a unit of the Airbus Group. The medium lift aircraft, which arrived in Clark Air Base from Seville, Spain last March 22,can carry “as much as 71 passengers, 50 paratroopers, 24 stretchers with five to seven attendants or about 20,000 pounds of cargoes,” a statement from the PAF said.
DND may scrap Huey contract Philippine Star 26th Mar 2015
The Department of National Defense (DND) is planning to scrap the contract for the supply of 21 UH-1 helicopters worth P1.2 billion, citing the supplier’s failure to deliver the air assets on time. In a notice to terminate forwarded yesterday to the joint venture of Rice Aircraft Services Inc. and Eagle Copters Ltd., Defense Secretary Voltaire Gazmin informed the supplier of its failure to comply with the delivery schedule. “You are hereby ordered to submit a verified position paper stating why the contract should not be terminated within seven days upon receipt thereof,” Gazmin said in the notice addressed to Robert Rice, the official representative of the joint venture. Citing the procurement law, Gazmin said the contract for the purchase of UH-1 helicopters shall be partially terminated for exceeding the 10 percent maximum liquidated damages.
DND to Upgrade Gozar Air Station in Mindoro Defense Studies 25th Mar 2015
The Defense Department will upgrade the Gozar Air Station in Mindoro Occidental in line with its effort to boost the Philippines’s territorial defense capabilities. Defense Secretary Voltaire Gazmin said the air station would be refitted and equipped with radars through the military’s upgrade program. “We give primacy to the enhancement of our capability to monitor and secure our territory. Gozar Air Station will play a major role as we shift our focus from internal security operations to territorial defense,” the defense chief said in a statement. Gazmin visited the facility last March 21 and was welcomed by local officials led by Lubang Island Mayor Juan Sanchez. Aside from Gozar, the government is also considering installing radars in Pasuquin, Ilocos Norte and Salakot in Palawan. Gazmin and other security officials visited the Salakot Air Station on Tuesday to inspect the facility. The Philippines is upgrading its territorial defense capabilities amid the aggressive expansion of China, which has been occupying
Economics
PHL not opening up enough -- US Business World 8th Apr 2015
The Philippines has made little progress in terms of opening up its market further to American goods and services, according to the 2015 National Trade Estimate report published annually by the Office of the United States Trade Representative (USTR). The Washington D.C.-based agency, in the 444-page report that was released last April 1 and devoted seven pages to the Philippines, said American exporters cited the same concerns they had raised previously such as those relating to the government’s import policies, intellectual property rights (IPR), and regulatory barriers.
Property Zooms Ahead in Philippines WSJ 7th Apr 2015
Neighborhoods inspired by Beverly Hills, fast-rising office towers and swanky malls resembling landmarks like St. Mark’s Square in Venice: It might sound like China circa 2005, but this is the Philippines in 2015. The real-estate sector here is enjoying a boom as new property floods a market usually stifled by low prices and developers notorious for completing projects years behind schedule.
AmCham: Expand list of perks Business Mirror 5th Apr 2015
American businessmen in the country want the government to give investors more options in availing themselves of fiscal perks for qualified projects, instead of merely replacing the current incentives scheme. For instance, the American Chamber of Commerce of the Philippines (AmCham) said the reduced 15-percent corporate income tax (CIT) for 15 years, as proposed by the Department of Trade and Industry (DTI) in lieu of the current incentives program, should be considered as an additional package to be offered by investment-promotion agencies (IPAs). “The option has come up for ‘15 for 15’; that should be in addition to what we already have,” said John Forbes, senior adviser to AmCham.
Foreign investors prefer status quo on fiscal incentives Manila Bulletin 5th Apr 2015
Foreign investors have strongly proposed that government maintain a status quo on the current set of fiscal incentives granted to investors and offer the planned reduced corporate income tax (CIT) of 15 percent for 15 years as an option. This was raised by the American Chamber of Commerce (AmCham) led by its Executive Director David Ebb Hincliffe as the Board of Investments, the government’s premier investment generating agency, and the Department of Finance, the government’s revenue maximizing agency, are close to finalizing a joint position on the proposed bill on the Rationalization of Fiscal Incentives.
PHL found most resilient emerging mart Business World 5th Apr 2015
The Philippines figured as the “emerging market” most resilient to potential external shocks in a paper authored by an analyst at the Center for Global Development, a Washington D.C.-based nonprofit think tank. In a February report, titled “Emerging Market Macroeconomic Resilience to External Shocks: Today versus Pre-Global Crisis” that was e-mailed to reporters last Apr. 2 by the government’s Investor Relations Office, economist Liliana Rojas-Suarez ranked 21 countries according to how each one is likely to fare in the event of a global economic downturn that could be triggered by a prolonged low inflation environment in Europe, as well as from a looming monetary policy normalization in the United States.
IMF hikes Philippine growth outlook, but flags risks Business World 1st Apr 2015
The International Monetary Fund (IMF) has raised its 2015 outlook for Philippine economic growth amid cheaper commodities and robust domestic activity, among others, even as the Washington D.C.-based multilateral lender called for more revenue reforms to meet large spending needs ahead. "Economic growth is expected to rise to 6.7% in 2015 due to lower commodity prices, higher public spending, and continued strong private construction and export growth," the IMF yesterday said in a statement following the conclusion of a staff mission to the Philippines last March 25-31.
BIR yields to business groups anew on disclosure of other income Business World 1st Apr 2015
The Bureau of Internal Revenue (BIR) has deferred for a fourth time the implementation of a rule requiring taxpayers to report other sources of income in their annual tax returns. In Revenue Memorandum Circular (RMC) No. 13-2015 published in newspapers yesterday, BIR said filling out the "supplemental information return" (SIR)portion of the 2014 income tax return (ITR) due Apr. 15 will be "optional." The SIR covers "passive" income items that are tax-exempt or whose final withholding taxes have been paid such as interest, royalties, prizes and other winnings; cash and property dividends; capital gains from the sale of stocks not traded on the stock exchange; and capital gains from the sale of real property, among others.
Aquino approved pay hike for uniformed personnel Business Mirror 31st Mar 2015
President Aquino signed on Friday last week a joint resolution earlier passed by Congress increasing to P150 from P90 the daily subsistence allowance of all officers men in the Armed Forces of the Philippines (AFP), the Philippine National Police (PNP), the Bureau of Fire Protection (BFP), the Bureau of Jail Management and Penology (BJMP), the Philippine National Police Academy (PNPA), Philippine Coast Guard (PCG), as well as the uniformed personnel of the National Mapping and Resource Information Authority (Namria.) Among those covered by the approved pay-hike scheme are officers, enlisted personnel, candidate soldiers, probationary second lieutenants, cadets and civilian active auxiliaries of the AFP, PNP, the BFP, the BJMP, PNPA, PCG and Namria. According to Palace Spokesman Edwin Lacierda, the President has signed the joint resolution increasing their daily subsistence allowance “effective January 1, 2015.”
Philippines expected to continue leading SE Asia’s expansion Business World 25th Mar 2015
The Philippines could remain Southeast Asia’s fastest-growing economy this year and the next as the country benefits from low oil prices, accelerated government spending and better exports prospects with major trading partners, the Asian Development Bank (ADB) said in a report released yesterday. In its flagship report, titled Asian Development Outlook 2015: Financing Asia’s Future Growth, the Manila-based regional lender said it still sees the Philippine economy growing at 6.4%, unchanged from a December 2014 forecast, before slowing to 6.3% in 2016 due to investor caution amid a change in government. Growth outlooks for the country were kept even as the multilateral lender cut projections for Southeast Asia this year.
Energy
Manila treads cautiously towards membership in China’s Asian bank Business World 6th Apr 2015
THE PHILIPPINES’ infrastructure buildup could get a lift from Beijing’s initiative that will fund roads, ports and bridges across Asia, but officials say Manila is checking the new institution’s nuts and bolts before taking the plunge and committing to join. Beijing had announced at the March 31 deadline to seek founding membership in the $50-billion Asian Infrastructure Investment Bank (AIIB) that 49 countries and Taiwan had applied. Agence France Presse (AFP) described it as no less than “a diplomatic coup” that lured even key allies of the United States, which has grown increasingly worried over China’s moves to displace it as the predominant power in Asia. Economies interested in the new regional lender include four of the five permanent members of the United Nations Security Council, 18 out of 34 members of the Organization for Economic Cooperation and Development, as well as all 10 members of the Association of Southeast Asian Nations (ASEAN), AFP had noted.
Proposal to raise oil tax dead in the water Business World 27th Mar 2015
A proposal to hike the excise tax on petroleum products in order to shore up customs collections amid low world oil prices -- first floated in January by a Finance official in a hearing at the House of Representatives -- has no chance of making it through the legislative mill in the current 16th Congress, a leader of one chamber signaled yesterday.
New geothermal find bared Manila Standard Today 26th Mar 2015
The Philippines will have a new geothermal power plant, after Emerging Power Inc., a renewable energy company led by businessman Antonio Zamora, found an exploration site in Oriental Mindoro province capable of producing 40 megawatts of power. EMI said contractor Quest Exploration Drilling Philippines Inc. successfully conducted exploration drilling of its well pads in the Montelago geothermal project in Oriental Mindoro. EPI tapped the expertise of QED-Philippines to help in the initial drilling stage of the $185-million geothermal plant in Naujan, Oriental Mindoro. “We are pleased by the success of our exploration drilling work in Nauhan. It shows we have the geothermal resources needed to produce close to our target of 40 MW power. With one more geothermal plant rising, the country is well on the way to becoming one of the world’s leading sources of clean geothermal power,” Zamora, EPI chairman, said in a statement.
Govt to require use of Euro 4 fuel in July Manila Standard Today 25th Mar 2015
The Environment Department issued a directive requiring the use of cleaner fuel and imposing stricter emissions standards for all vehicles starting July 2015. Environment Secretary Ramon Paje said under DENR Administrative Order No. 2015-14, the new emission standards should comply with Euro 4 standards, instead of the current Euro 2 standards. Under the Euro 4 standards, the sulfur content of diesel and gasoline is 50 parts per million instead of 500 ppm for Euro 2 fuel. Benzene in gasoline is 1 percent by volume compared with 5 percent for Euro 2 fuel. For aromatics, Euro 4 fuel contains only 35 percent by volume, compared with Euro 2 fuel, which prescribes no limit.
Osmeña wants electricity exempted from VAT Philippine Star 1st Apr 2015
Sen. Sergio Osmeña III wants electricity to be exempted from value added tax under a proposed measure that will amend the National Internal Revenue Code of 1997 and the Reformed VAT Law. He said the move aims to ease the burden of the public in paying high electricity rates in the country. “VAT on electricity is another burden on the already over-taxed shoulders of our people, especially those whose incomes are barely enough to cover their basic needs. Thus, in light of the unabated price increases in fuel, food and other commodities, Congress is duty-bound to find ways of providing economic relief for the Filipino people,” Osmeña said in the explanatory note of his Senate Bill 2714. Apart from this, Osmeña also proposed the exemption from VAT on the services of franchise grantees or electric utilities; and the sale or importation of machineries and equipment, including spare parts, to be directly used by the buyer or importer himself in the generation, transmission and distribution of electricity.
Emerson opens new $35 million facility in the Philippines Biz Journals 26th Mar 2015
Emerson, the St. Louis technology and manufacturing company with $24 billion in annual revenue, has opened a new $35 million Integrated Solutions Center in the Philippines. The new facility will house 2,300 Emerson employees and support several of Emerson’s business units, including its Process Management and Climate Technologies segments.
Financial Services
Third Asian bank coming to PH Manila Standard Today 7th Apr 2015
The Bangko Sentral ng Pilipinas approved the application of another Asian bank to expand in the Philippines, after it accepted the application of Shinhan Bank of Korea and Sumitomo Mitsui Banking Corp. of Japan. Bangko Sentral Deputy Governor Nestor Espenilla Jr. said at the sidelines of an event in Makati City Tuesday the bank regulator would formally announce the name of the foreign bank later this week. “Another foreign bank was approved by the Monetary Board to expand here … We are going to make an announcement this week after the bank made its own official announcement,” Espenilla said. “We are going to let them make the announcement first because it is a listed firm in that country,” Espenilla said.
PSE pleased with trading turnout The Philippine Star 6th Apr 2015
The Philippine Stock Exchange (PSE), operator of the country’s stock market, said it is pleased with the turnout of trading activity in the first quarter of the year and expects it to further pick up in the coming months. The PSE said trading activity at the local bourse registered a 40.4 percent increase to P641.59 billion in the first three months of the year from P457.08 billion in the same period last year. The average daily turnover also surged 47.5 percent year-on-year to P10.87 billion, the PSE said. “We are pleased with the market participation we saw in the first quarter. Investors are really keen on being part of the Philippine growth story. We hope that upbeat corporate earnings and optimism over the local economy will continue to attract investors to our market,” PSE president and CEO Hans B. Sicat said.
Philippines: Private insurers to be allowed to cover public assets Asia Insurance Review 2nd Apr 2015
The Philippine Finance Department is looking at allowing private insurers to provide cover for public assets and infrastructure, especially those owned by local government units, according to the Insurance Commission. Insurance Commissioner, Mr Emmanuel Dooc told the Philippine Inquirer that the insurance regulator, which is an agency of the Department, is supportive of the move. According to Mr Dooc, government assets were currently being insured by the state-run pension fund Government Service Insurance System (GSIS). While the GSIS has been efficient in insuring government-owned buildings as well as infrastructure, Mr Dooc said there was still room for private insurance firms to participate as most government assets remained underinsured.
IC imposes tighter criteria on appointing foreign insurers’ agents Business Mirror 1st Apr 2015
The Insurance Commission is imposing stricter requirements on the appointment of resident agents of unauthorized foreign insurers to ensure that legal processes may be brought against these foreign insurers in connection with their transactions with local insurance companies. Insurance Commissioner Emmanuel F. Dooc has issued Circular Letter 2015-2016, prescribing the rules and processes in the appointment of resident agents of unauthorized foreign insurers, reinsurers or brokers with whom local insurance companies transact with, mainly through reinsurance contracts. Under current jurisprudence, unauthorized corporations that have transacted business in the Philippines can bring suit to assert a claim against persons they transact with, despite an express prohibition in the Corporation Code that prevents foreign corporations from transacting business in the Philippines without a license from maintaining a suit here.
Banks’ NPL ratio improves to 1.82% in Dec The Philippine Star 1st Apr 2015
The exposure of the country’s universal and commercial banks to bad debt fell to a historic low at the end of December last year, an indication that the banking industry remained healthy despite problems besetting financial institutions in the eurozone. The Bangko Sentral ng Pilipinas reported yesterday that the average non-performing loans ratio of the country’s big banks settled at only 1.82 percent last year , the lowest level ever recorded in years since the 1997 Asian crisis. The nonperforming loan ratio is the proportion of bad debts to the outstanding loans of banks. A loan becomes a bad debt if it remains unpaid at least 30 days after maturity. The banks’ soured loans fell to P93.06 billion as of the end of 2014 from P95.52 billion in November last year.
Bank lending growth eases The Philippine Star 1st Apr 2015
Bank lending continued to grow at a slower pace in February, indicating that lending institutions have become a bit more selective in extending loans. In a statement, the Bangko Sentral ng Pilipinas said the growth of outstanding loans of universal and commercial banks eased to 15.2 percent last month compared to 17.3 percent in January. Similarly, bank lending inclusive of reverse purchase placements with the BSP, grew by a slower 14.6 percent from 16.6 percent the previous month. The bulk or 80 percent of banks’ total loan portfolio comprised loans for production activities, which expanded by a slower 14.5 percent from 16 percent in January.
China’s Asian Infrastructure Investment Bank: Knowns, Unknowns Bloomberg 31st Mar 2015
(Bloomberg) -- The Americans and Japanese are holding out, there’s scuffles in Taiwan and the Colombians appear to want a redo of the title. Hurdles aside, China’s 18-month-old plan to start the first new multilateral development lender in decades has won support from governments around the world. More than 40 countries have applied by Tuesday’s deadline to be founding members of the Asian Infrastructure Investment Bank. Now we await details on how the upstart institution will operate. Here is what we know, and what we don’t, so far:
Index breaches 8,000 mark for first time The Philippine Star 31st Mar 2015
The country’s benchmark stock index was off to a sizzling start yesterday, clinching its 22nd record close for the year and breaching the 8,000 level for the first time. The Philippine Stock Exchange index (PSEi) soared 0.27 percent or 21.45 points to end at a new all-time high of 7,899.41, eclipsing the previous record of 7,877.96 made last Friday. Monday’s finish was the PSEi’s third consecutive session of hitting all-time high levels. Aside from yesterday’s new record close, the index also set its foot above the 8,000 mark for the first time. The PSEi set a new all-time intraday high of 8,007.98. “Despite the pullback at the end of the session, breaking the 8,000 mark is an indication of the confidence level that investors have on the market. This conviction is supported by the prevailing positive sentiment in local developments as well as in the region as seen by gains in most Asian bourses,” said PSE president and CEO Hans B. Sicat.
Dooc tightens rules on insurer repatriation of profits Business Mirror 27th Mar 2015
The Insurance Commission (IC) has tightened the rules on the repatriation of net profits or dividends of foreign insurance and reinsurance companies doing business in the Philippines. Insurance Commissioner Emmanuel F. Dooc issued Circular Letter 2015-09, prescribing additional requirements for applications of insurance and reinsurance companies for remittances abroad of net profits or dividends. Under the new circular letter, applications for the sending overseas of the net profits or dividends must be supported by the following documents: A sworn statement of the authorized officer of the applicant company attesting to the fact that the remittances shall be from net profits remaining on hand after satisfying the requirements of the Insurance Code regarding statutory deposits, risk-based capitalization, and full policy reserve funds inclusive of loss reserves and liabilities for expenses and taxes; and a copy of the latest audited financial statements of the applicant company.
AXA continues growth globally and in the Philippines Philippine Star 26th Mar 2015
AXA, global leader in insurance, reported strong business performance in its global operations with total revenues up 3 percent to €92 billion, underlying earnings up 8 percent to €5.1 billion, adjusted earnings up 7 percent to €5.5 billion and net income up by 12 percent to €5 billion. “AXA has delivered another year of earnings growth in all business lines, with underlying earnings crossing the €5 billion mark for the first time in the company’s history” said Henri de Castries, chair and chief executive officer (CEO) of AXA. “In 2014, we recorded top line growth in all our businesses, maintained our discipline in writing profitable and capital efficient business and continued to pursue active asset liability management—all contributing to AXA’s strong and sustainable performance,” he added.
Philippines pushes for single e-commerce platform within ASEAN Philippine Star 26th Mar 2015
The Department of Trade and Industry (DTI) said today that it will propose a single e-commerce platform for micro, small and medium enterprises (MSMEs) within the ASEAN in the upcoming Asia-Pacific Economic Cooperation (APEC) ministerial meeting to be held in Boracay Island. The ministerial meeting dubbed as "APEC Ministers Responsible for Trade" to be held in May will discuss issues affecting MSMEs and the way they do business across the ASEAN. "We already have ideas we can agree on identifying e-commerce platform to be used by MSMEs across APEC economies," DTI secretary Gregory L. Domingo said. The proposed platform outlines customs rules and procedures and regulations for the rules of origin (ROO). "MSMEs are having a hard time exporting. A single platform wherein they can book their sales and with links to logistics will boost MSME trade across the region," said Domingo.
CTB inks agreement with LRA on mortgage-related transactions Business Mirror 25th Mar 2015
The rising number of mortgage-related transactions being questioned in courts prompted the Chamber of Thrift Banks (CTB) to sign an agreement with the Land Regulation Authority (LRA). CTB President Rommel S. Latinazo, in a briefing on Wednesday, said the uniformed loan and mortgage agreement, which was inked along with other banking groups, aims to streamline documentation requirements in real-estate mortgage transactions. ”We came out with the final version this week and, as far as the CTB is concerned, we will be encouraging our members to adopt these rules,” he said. Latinazo, who is also the president of RCBC Savings Bank, said the tie-up with LRA was made to ensure that changes in the documents required in mortgage transactions are in line with those of the regulators.
Security Bank names Villarosa new chairman Philippine Star 25th Mar 2015
Security Banking Corp. has a new chairman in erstwhile president and chief executive officer Alberto S. Villarosa, while Alfonso L. Salcedo Jr. is the new president and CEO effective April 28. In a report to the Philippine Stock Exchange, the bank said its board of directors also named Frederick Y. Dy as chairman emeritus. In a statement, Dy, the outgoing chairman, said the organizational change with the promotion of Villarosa to chairman manifests continuity of Security Bank’s overall business strategy formulation and execution. “The appointment of Salcedo as president and chief executive officer, with his 30 years of experience in retail banking and finance, will serve well in reinforcing our consumer bank strategy as a third pillar to complement the bank’s existing strengths in wholesale banking and financial markets,” he said.
Big Korean bank coming Manila Standard Today 25th Mar 2015
Shinhan Bank, one of the largest financial groups in South Korea, has received an approval from the Bangko Sentral ng Pilipinas to establish branches in the Philippines. Bangko Sentral Deputy Governor Nestor Espenilla Jr. told reporters in an interview the regulator approved the branching application of Shinhan Bank, after the government passed a law opening the local banking sector to foreign capital. Shinhan became the second Asian bank whose application was approved by Bangko Sentral this year, after Sumitomo Mitsui Banking Corp., a multinational banking and financial services company based in Yurakucho, Chiyoda, Tokyo, Japan. “There are two more [Asian banks] in the pipeline,” Espenilla said. He did not identify the two financial institutions.
Food & Agriculture
Bill Gates deputy visits PH for rice research updates Rappler 8th Apr 2015
The world’s richest man, Bill Gates, was reportedly spotted in Los Baños, Laguna – the hub of the International Rice Research Institute (IRRI) on Wednesday, April 8. Lambino told Rappler, however, that Dr. Pamela Anderson, the agricultural development director of the Bill and Melinda Gates Foundation (BMGF) had been in IRRI since the weekend.
MWC eyes new prospects in Indonesia after failed attempt Manila Bulletin 8th Apr 2015
Listed Manila Water Company Inc. is staging another attempt to expand its presence to Indonesia with prospects of new acquisitions, more than two years after the company came home unsuccessful to secure a stake in one of the two water utility operators in Jakarta.
Poverty and farm productivity: ASEAN scorecard Business World 6th Apr 2015
The Philippine poverty incidence has risen by 1.2 percentage points to 25.8% in the first half of 2014, from 24.6% in 2013. This was attributed to high food prices, especially rice. About 25.8 million poor people out of 100 million is disproportionately large compared to our ASEAN peers. In 2014, there were about 29 million poor in Indonesia in a population of 253 million. But Indonesia has a 2.5 times bigger population!
DA mulls over lower SRP for pork, chicken Business Mirror 25th Mar 2015
To arrest the unabated hike in their prices, the Department of Agriculture (DA) said on Wednesday that it will revive the suggested retail price (SRP) of chicken and pork, as the retail prices of the said commodities remain high despite the drop in farm-gate prices. The DA “livestock operation” is now reviewing the SRP. The gate price of chicken has gone down to all-time low of P52 per kilogram from P84 per kg, due to efficient production practices and high inventory of frozen chicken,” Agriculture Undersecretary for livestock Jose Reano said in a text message. At present, the country’s inventory of frozen chicken stands at 17 million kilos.
Newly signed law to make sugar sector more competitive by upgrading roads, consolidating plantations Business World 1st Apr 2015
A MEASURE that will make the Philippine sugarcane industry more competitive has been signed into law, establishing a government-led program that will create or upgrade farm-to-mill roads and bankroll the consolidation of small farms into bigger plantations to make them profitable. President Benigno S. C. Aquino III on March 27 signed the Republic Act No. 10659, also known as the Sugarcane Industry Development Act of 2015, more than a month after it has been approved by Congress. Under the law, the government, starting 2016, will appropriate a P2-billion fund to help develop the industry, which contributes more than P70 billion annually to the economy.
Lower food prices cuts March inflation to 2.4% PhilStar 7th Apr 2015
National Economic and Development Authority (NEDA) on Tuesday noted that lower food prices, particularly rice and meat, eased the headline inflation from 2.5 percent in the previous month to 2.4 percent in March 2015. The decrease in inflation is also remarkable progress from March 2014’s 3.9 percent headline inflation rate, the state agency said. “The easing annual growth rate of rice prices was supported by favorable total rice stocks inventory. Food inflation could have been lower if not for the relatively higher prices of vegetables and fish, which is due in part to the likely shift in consumers’ preferences given the onset of the Lenten season," explained Socioeconomic Planning Secretary Arsenio Balisacan, NEDA Director-General.
DTI taps opportunities in halal market PhilStar 7th Apr 2015
The Philippines is looking at opportunities to provide products and services that cater to the halal market in line with the objective of attracting more tourists here. In a statement yesterday, the Department of Trade and Industry (DTI) said it is exploring opportunities in the halal market. During the 8th World Halal Conference (WHC) 2015 and 11th Malaysia International Halal Showcase (MIHAS) held in Kuala Lumpur last week, Prudencio Reyes, Jr. who serves as undersecretary at the DTI and senior official for the Brunei-Indonesia-Malaysia-Philippines East AseanGrowth Area (BIMP-EAGA) attended the event to learn about opportunities available for the country.
12% VAT on sugar takes effect next month PhilStar 7th Apr 2015
The payment of the advance 12-percent value added tax (VAT) on refined and raw sugar may be imposed as early as May after the Bureau of Internal Revenue (BIR) issued a new regulation reiterating the imposition of such, effectively snubbing the petition of the Sugar Regulatory Administration (SRA) to postpone the implementation until the next crop year. The BIR last week published a new revenue regulation reiterating that sellers of refined and raw sugar are required to pay in advance the 12-percent VAT before the sugar is withdrawn from the warehouses.
Puregold to open 15 new stores in Visayas and Mindanao amid saturated Luzon Business World 7th Apr 2015
Puregold Price Club, Inc. is making an aggressive push to open more stores outside Luzon and buy out existing grocery operators to boost growth. The Lucio L. Co-led firm may open more than half of the 25 new stores slated for launch this year in the Visayas and Mindanao that will triple its store count outside Luzon by the end of the year, Puregold President Leonardo B. Dayao said in an interview. “As much as 15 of the new stores will be opened in the Visayas and Mindanao,” Mr. Dayao said.
Health & Life Sciences
Concern over rise in HIV infections in the Philippines Channel NewsAsia 2nd Apr 2015
According to the United Nations, the Philippines is one of nine countries where HIV cases are rising at an alarming level. HIV, or the human immunodeficiency virus, damages the immune system, and prevents the body from fighting potentially life-threatening diseases. The virus is transmitted sexually, by contact with infected blood, or from mother to child during pregnancy, childbirth or breast-feeding. According to a UNAIDS report, new incidents of HIV infections around the world halved between the years 2001 and 2011. But in the Philippines, the number of new infections has risen by 25 per cent.
PCCI woos Indian pharma firms to put up factories in PH ABS-CBN News 1st Apr 2015
MANILA, Philippines - The country’s largest business organization, the Philippine Chamber of Commerce and Industry (PCCI), is encouraging India’s pharmaceutical companies to put up alternative manufacturing and research facilities in the Philippines to enjoy tariff-free entry of medicine products to Southeast Asian markets. “The Philippines should not only be a viable market for cheap Indian medicine. Our country could also be an alternative production location for Indian pharmaceutical companies,” PCCI chairman Miguel Varela said in a statement. The PCCI last week held a business forum for a delegation from the Pharmaceuticals Export Promotion Council of India (Pharmexcil). Pharmexcil, which is organized by the Ministry of Commerce and Industry of India, is focused on promoting India’s healthcare and pharmaceutical products in the world.
Hospital modernizations planned before Aquino’s gov’t steps down Business World 25th Mar 2015
MORE REGIONAL hospital upgrades will be added to the project pipeline of the public-private partnership (PPP) program before the administration of President Benigno S. C. Aquino III ends in 2016, the program’s executive director said on Friday. On the sidelines of an event in Pasay City, PPP Center Executive Director Cosette V. Canilao told reporters: “We are continuously developing projects. We can add to the pipeline before the administration ends.” “Rehabilitation and maintenance of some regional hospitals are some of the projects we aim to include in the pipeline,” Ms. Canilao said, adding that her office is “still trying to identify which ones we can do.”
Senegal, Philippines, Uruguay honoured for reproductive health initiatives Enterprise Innovation 2nd Apr 2015
The Philippines will be receiving the 2015 Resolve Award for Policy Development, which recognizes the country’s game-changing transformations in the political and regulatory environment for reproductive health. The country's newly enacted reproductive health law is the result of a 13-year campaign to establish a national reproductive rights and health framework, despite a difficult political climate.
DOH insists on more hospital beds for poor Inquirer 2nd Apr 2015
The Department of Health (DOH) said it was reviewing the contract for the privatization of the 70-year-old Philippine Orthopedic Center (POC) to ensure that the bulk of its services would still be offered to government-sponsored patients and indigents enrolled in the Philippine Health Insurance Corp. (PhilHealth). Health Secretary Janette Garin said the review was needed in order to clarify the allocation of beds to charity cases, noting that the contract indicated that only 70 of the 700 hospital beds would be devoted to government-sponsored patients. She said this was only 10 percent, a far cry from the initial agreement of 70 percent. “We are standing by the initially agreed 70 percent service for sponsored cases while only 30 percent for private cases,” she told a press briefing on Monday.
Gov’t hospitals under white alert The Philippine Star 1st Apr 2015
The Department of Health has placed all government hospitals under code white alert for the Holy Week. “Hospitals are now on code white, especially in areas where there are procession and other Lenten activities. They have to be ready to attend to patients,” said DOH spokesman Lyndon Lee Suy on March 31. Code white means that the hospitals must have adequate workers on standby. Hospitals must also have enough medicine, medical supplies and other logistics.
PCCI urges India’s pharma firms to put up factories in PH The Manila Times 31st Mar 2015
The Philippine Chamber of Commerce and Industry, the country’s largest business organization, has proposed that India pharmaceutical companies put up alternative manufacturing and research facilities in the Philippines to qualify for tariff-free entry to the ASEAN markets. “The Philippines should not only be a viable market for cheap Indian medicine, our country could also be an alternative production location for Indian pharmaceutical companies,” said PCCI chairman Miguel Varela.
Metro Pacific’s health care chain adds 9th hospital Business World Online 30th Mar 2015
The health care group of Metro Pacific Investments Corp. (MPIC) is adding a 110-bed facility in Zamboanga to bring to nine the number of private hospitals it is now operating nationwide, the parent company announced yesterday. Metro Pacific Hospital Holdings, Inc. sealed last March 27 a long-term lease with the Western Mindanao Medical Center, a 25-year-old hospital in the Zamboanga Peninsula, parent MPIC told the stock exchange yesterday. It formed a new wholly owned subsidiary Metro Pacific Zamboanga Hospital Corp. for the deal.
Gov’t Agencies & Partners Eye NCR Stance on Health Microinsurance Philippine Information Agency 28th Mar 2015
The Department of Finance–National Credit Council (DOF-NCC), Insurance Commission (IC) and Department of Health (DOH) are putting the microinsurance stake deep in the ground so that every low-income Filipino, including the informal sectors, would have access to relevant and cost-sensitive healthcare financing. The National Capital Region consultation on March 27 at New World Manila Bay Hotel was the final round in the series of five regional Health Microinsurance (HMI) consultations held in major cities across the country. So far, close to 500 participants from public and private providers and practitioners in health and insurance sounded out on the HMI document. The German Development Cooperation (GIZ) continues to provide the support for HMI Policy and Regulatory Framework consultations which will culminate at the NCR. It is expected that the final leg of discussions right at the seat of Philippine government would be dynamic particularly on the Philippine initiatives on microinsurance, updates on the social health insurance (SHI) and the proposed draft of HMI policy and regulatory framework.
USAID lauds PHL as global champion against tuberculosis GMA News Online 25th Mar 2015
The US Agency for International Development (USAID) has recognized the Department of Health for its achievements in the global fight against tuberculosis, which kills 23,000 Filipinos and 1.5 million people worldwide every year. In a news release on Tuesday, the agency said it would award the Philippines through the DOH with the TB Champion Award on World Tuberculosis Day, which was on that same day, March 24. “The TB Champion Award recognizes the Philippines’ outstanding work in the fight against TB. Adopting proven TB care strategies, the DOH successfully scaled up quality treatment of multidrug-resistant TB and expanded coverage and treatment of adults and children suffering from TB,” the statement said.
ICT
M-commerce boom in Philippines as smartphone penetration increases PhilStar 7th Apr 2015
M-commerce is booming in the Philippines as smartphone penetration increases. While developed markets like Singapore have the highest rates of smartphone penetration, it is the Philippines and Thailand that are leading the charge in m-commerce. “We are starting from a lower base because mobile phone penetration in the Philippines is still quite low - one of the lowest in Asia - but at the same time it is growing faster than the other countries,” said Inanc Balci, co-founder and CEO of Lazada, an online shopping service.
PLDT, Globe dispute No 1 spot in mobile business PhilStar 7th Apr 2015
Dominant carrier Philippine Long Distance Telephone Co. (PLDT) and Ayala-led Globe Telecom Inc. are disputing the number one spot in the “cut throat” competitive mobile phone industry. Globe president Ernest Cu said in a press conference after the company’s annual stockholders’ meeting that the company emerged as the number one mobile brand in the country. PLDT spokesperson Ramon Isberto was quick to dispute the allegation of Globe pointing out that Smart Communications Inc. remains the undisputed number one mobile service provider in the country.
Homegrown smartphone brand beats Samsung in the Philippines Tech in Asia 6th Apr 2015
Philippine budget phone maker Cherry Mobile beat South Korean giant Samsung as the leading smartphone brand in the Philippines in 2014, IDC said today. It was the second straight year that Cherry has whipped Samsung in the nation. According to the research firm, Cherry cornered 21.9 percent of the Philippine market in terms of volume of smartphones shipped in 2014, overtaking Samsung, whose share declined further to 13.3 percent.
Infrastructure
Time running out for mining revenue-sharing bill Business World 7th Apr 2015
THE PHILIPPINES may run out of time to pass a proposed law that contains a new mining revenue-sharing scheme as discussions about it is slated to take off by July the earliest, a congressional leader said. The House of Representatives will start deliberations on House Bill (HB) 5367 by the “third regular (session) realistically,” Speaker Feliciano R. Belmonte, Jr. said in a text message last week when asked for updates on the measure. Asked whether the legislative can still pass the bill within the 16th Congress given the narrow window for discussions, Mr. Belmonte yesterday said: “That is true. We are running out of time.”
Water PPP draws potential contenders Business World 6th Apr 2015
THREE FIRMS have sought to qualify for the P18.72-billion New Centennial Water Source -- Kaliwa Dam Project (NCWS-KDP) auction, the second water public-private partnership (PPP) project rolled out by the government. The Metropolitan Waterworks and Sewerage System (MWSS), the agency in charge of the project, yesterday announced that San Miguel Corp., Megawide Construction Corp. and Spain’s Abengoa Abeinsa Business Development submitted prequalification documents.
Prequalification conferences due next week for regional airport, prison PPPs Business World 1st Apr 2015
PUBLIC-PRIVATE partnerships (PPP) to modernize the prison system and regional airports will move a step closer to auction next week with potential bidders summoned to prequalification conferences, officials said. The PPP Center said in a statement on Wednesday that the P50.18-billion Regional Prison Facilities project, being implemented by the Department of Justice (DoJ), will have its prequalification conference on April 8. Although the complete list of companies that bought bid documents has not yet been released, PPP Center Executive Director Cosette V. Canilao said on the sidelines of an event in Pasay City last March 20 that among the groups that have expressed interest are Guam-based Genesis Consortium and local contractor Megawide Construction Corp. -- a listed construction firm that has bagged other PPP deals.
Billionaire Sy to Build Micro Cities Around His Philippine Malls Bloomberg 31st Mar 2015
(Bloomberg) -- Billionaire Henry Sy, the richest person in the Philippines, will start to develop apartments, offices and hotels around his shopping malls to maximize the value of property holdings in the face of similar moves by competitors. Fifteen of 50 shopping malls now owned by Sy’s SM Prime Holdings Inc. are on land large enough for high-density, mixed-used development, Executive Vice President Jeffrey Lim, 53, said in an interview in Manila on Monday. Depending on demand, five so-called townships will be built in two years and about 10 more over five years, he said.
Infrastructure key to peace in Mindanao – Ang Philippine Star 25th Mar 2015
Seeking a long-term solution to peace and order issues in Mindanao? Ramon S. Ang, head of one of the country’s biggest conglomerates, said building more infrastructure in the island is the key. “The solution is to build more roads and more infrastructure. Naturally, the peace and order problem will be solved,” said Ang, president of food-to-infrastructure conglomerate San Miguel Corp., in an interview on the sidelines of the Euromoney Philippines Investment Forum yesterday. Citing provinces such as Cavite, Batangas, Laguna and Quezon as examples, Ang said these areas were considered as a “no man’s land” for a time.
Philippine economy to lead Asean growth: IMF Nation Multimedia 3rd Apr 2015
The Philippine economy will be Southeast Asia's growth leader this year on the back of more aggressive government spending, according to the International Monetary Fund (IMF). Consumption is also expected to stay strong, thanks to cheap fuel, which leaves more cash in people's pockets that can be used to pay for other items. At the conclusion of its annual "Article IV" country review, the multilateral lender said the Philippine economy's strength has led to higher income levels and lower unemployment in the past year.
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