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Regional Affairs
Haze spreads across Philippines, disrupts flights Jakarta Post 23 Oct 2015
Haze from thousands of raging wildfires in Indonesia has been disrupting flights across the Philippines, forcing carriers to cancel flights and airports to ground small aircraft. In separate advisories, Philippine Airlines (PAL) and Cebu Pacific said they have not been flying to Cotabato city in the southern island of Mindanao since Oct 17. This week, Cebu Pacific also cancelled two flights to General Santos city, also in Mindanao, on Thursday (Oct 22). On Friday, both airlines cancelled flights to a third city, Dumaguete, in central Philippines. Cotabato, General Santos and Dumaguete are gateways to central and southern regions in the Philippines that are home to at least 10 million. PAL spokesman Maria Cielo Villanua told The Straits Times flights were being cancelled "on a day-to-day basis".
Philippines, Vietnam finalizing maritime, defense partnership Sun.Star 20th Oct 2015
Officials from the Philippines and Vietnam will met Wednesday to discuss bilateral relations, including the finalization of a strategic partnership which will enhance defense and maritime cooperation in the West Philippine Sea (South China Sea). The strategic partnership is in the agenda of the ministerial meeting of the 8th Philippines-Vietnam Joint Commission for Bilateral Cooperation (JCBC). "This strategic partnership is being established with a view to elevating the level and intensity of bilateral exchanges between the two countries," the Department of Foreign Affairs said, adding this was agreed upon by President Benigno Aquino III and Vietnam President Tan Sang in 2014 on the sidelines of the 26th Asia Pacific Economic Cooperation (Apec) Summit in China. Both the Philippines and Vietnam are maritime nations with "rapidly developing economies," Foreign Affairs Secretary Albert del Rosario said.
Philippines backs U.S. plan to sail ship near Chinese island Navy Times 13th Oct 2015
The Philippines on Tuesday backed a reported U.S. plan to challenge China's territorial claims by deploying an American Navy ship close to a Chinese-built island in the South China Sea, saying it was important for the international community to safeguard freedom of navigation in the disputed waters. The Philippine Department of Foreign Affairs said the reported U.S. plan to send a ship within 22 kilometers (14 miles) of the artificial island in the Spratly Islands "would be consistent with international law and a rules-based order for the region." The U.S. newspaper Navy Times reported last week that the Navy may soon receive approval for the mission to sail close to the island.
TPP
The Philippines should join the TPP The Philippine Star 9th Oct 2015
According to Trade Secretary Greg Domingo, the Philippines is waiting for the protocols in accepting new members to be finalized in the milestone agreement, and that the Philippines is right at the TPP door when it opens again. Aside from the Philippines, other countries that have shown strong interest in joining the TPP include Thailand (which was hobbled by political unrest) and South Korea (whose deputy trade minister stated they would “actively consider joining”). In fact, South Korea already has numerous trade pacts with individual countries or multilateral economic groups – 16 in all – but it is not closing its door on the TPP. The TPP is envisioned to promote economic growth, create jobs, raise living standards, reduce poverty, promote good governance and enhance labor and environmental protections among its member countries.
PHL taking small steps toward TPP membership Business Mirror 20th Oct 2015
Manila is aiming to complete technical consultations with all 12 members of the Trans-Pacific Partnership (TPP) by next year to make sure the Philippines will remain at the doorstep of the US- led trade bloc once it starts accepting new members. “The Philippines has indicated very clearly that we would like to join the TPP and would want to start discussions for our entry once it opens its doors to new members. Even before the TPP was concluded, the Philippine government had already undertaken technical consultations with six of the 12 TPP countries, and the talks will continue,” Trade Undersecretary Adrian S. Cristobal Jr. said.
Constitutional limits hampering PH’s TPP bid Philippine Daily Inquirer 23 Oct 2015
The Philippines’ bid to join the newly-minted Trans Pacific Partnership (TPP) agreement may be hampered by provisions in the Constitution, particularly the restrictions on foreign ownership, the Department of Trade and Industry (DTI) said Monday. Trade Undersecretary Adrian S. Cristobal Jr. said the Philippines was aware of the possible high level commitments that the United States-led landmark deal will require. He said current limitations in the Constitution may not be in line with the TPP’s thrust. He said the Philippines remained highly interested in being part of the deal, but there were concerns over the challenging chapters in the TPP. These include provisions on intellectual property rights, government procurement, and investor-state dispute settlement (ISDS), which the country must resolve if and when it enters negotiations with member countries. Article 7 of the Constitution provides that foreigners are prohibited from owning more than 40 percent of businesses and real properties in the country.
National Affairs
Simplifying ‘tedious’ tax payments a work in progress, Palace says Business Mirror 20th Oct 2015
Malacañang has acknowledged that the Aquino administration still has to complete the task of simplifying “tedious” tax-payment systems that aggravate the burden of taxpayers saddled with high tax rates, but noted the key role of Congress in passing legislation to ensure all issues are addressed. The Palace’s acknowledgment of the still-laborious payments processes, flagged in a PricewaterhouseCoopers (PwC) study that gave it very low scores, came alongside renewed commitment among Congress leaders to push the key measures in the tax-reform agenda that are seen to give taxpayers relief, notably, the move to index to inflation the taxable income levels that were set nearly two decades ago.
BOT Law amendment process stalls; no assurance of passage Business World 19th Oct 2015
Measures seeking to change the current Build-Operate-Transfer (BOT) law that covers government agreements with the private sector remain pending at the committee level at the House of Representatives with barely four months of legislative work left.
House approves proposed 2016 budget Business World 12th Oct 2015
The House of Representatives approved the P3.002 trillion national budget for 2016 on final reading late Friday, just before closing sessions for a three-week break. Voting 230-20, the chamber successively approved House Bill No. 6132 on second and third reading as the proposed spending plan was certified urgent by Pres. Benigno S.C. Aquino III. Mr. Aquino's certification allowed the chamber to rush approval of a measure by foregoing the three-day gap for subjecting the bill on second and third reading.
Congress ratifies bill reining in tax breaks Business Mirror 9th Oct 2015
The proposed Tax Incentives Management and Transparency Act (Timta)—one of the important revenue measures of the Aquino administration—has moved a step closer to being enacted into law, after the two chambers of Congress ratified the congressional bicameral committee’s consolidated version of the proposal. Under the bill, all heads of the investment-promotion agencies must submit to the National Economic and Development Authority (Neda) investment-related data, which will include the list of registered business entities, investment projects, investment cost, actual employment and export earnings. For tax-incentives data, the Department of Finance will furnish the Neda a copy of the reports submitted by the Bureau of Internal Revenue and the Bureau of Customs. Also, the bill provides that the data and information will be reflected by the Department of Budget and Management in the annual Budget of Expenditures and Sources of Financing, particularly in a section to be called the Tax Incentives Information. The bill said violators of this act will face P100,000 penalty for the first offense, P500,000 for the second and cancellation of the registration of business entities for the third instance.
Customs
Palace gives confusing tack on TPP Business Mirror 21st Oct 2015
The Aquino administration has stressed, time and again, that the Philippines wants to join the new trade bloc Trans-Pacific Partnership (TPP). But, while saying this, Malacañang is also maintaining its stand against Charter change—a necessity to meet the highly ambitious liberalization agreements being set by the US-led trade grouping. Communications Secretary Herminio B. Coloma Jr., when asked if President Aquino would soften his opposition to any move to tinker with the Charter in order to hasten the Philippines’s entry into the TPP, noted that the government is already in the process of fulfilling its commitments for joining the new trade pact. “We are taking steps to align ourselves with TPP norms,” Coloma said. But the Palace official quickly added that there had been “no change in the President’s stated position on Charter change.” This means no amendments to the Constitution under his term, a clear barrier to the full membership of the Philippines in the TPP.
MMDA adopts truck ban for South route from Nov 17-20 PortCalls Asia 21st Oct 2015
The Metropolitan Manila Development Authority (MMDA) will temporarily implement a modified truck ban along the South route from November 17 to 20 to give way to the Asia Pacific Economic Cooperation (APEC) Summit being hosted by the Philippines. MMDA officer-in-charge Emerson Carlos in a statement said the modified truck ban hour is from 6am to 10 pm and will complement the total closure of both lanes of Roxas Boulevard for the same dates. The scheme was unanimously approved during a Metro Manila Council (MMC) meeting held at the MMDA office on October 21. The MMC is the policy-making body of MMDA. The regular truck ban hours, from 6am to 10am and from 5pm to 10pm, will be reinstated immediately after the APEC Summit.
PH customs brokers want TABS scrapped for impeding cargo flow PortCalls Asia 21st Oct 2015
The Professional Customs Brokers Association of the Philippines, Inc. (PCBAPI) is requesting government to stop implementing the Terminal Appointment Booking System (TABS), citing its adverse effects on customs brokers and the economy. PCBAPI wrote a letter to Philippine Ports Authority (PPA) general manager Atty. Juan Sta. Ana seeking a stop to TABS and a return to the status quo in the “delivery of containers, return of empties.” The group claimed the new system, which is being implemented by port operators Asian Terminals Inc. (ATI) and International Container Terminal Services, Inc. (ICTSI) since October 1, contradicts just-in-time delivery and is “contrasting the flow of trade.” TABS, an electronic platform for booking containers at Manila South Harbor and Manila International Container Terminal (MICT), was developed to minimize road traffic and ensure a more organized flow of containerized cargoes while providing real-time information on container status.
PH Customs chief eyes weighing of import cargo inside ports, truck registration with BOC PortCalls Asia 20th Oct 2015
Customs commissioner Alberto Lina said he will soon issue a memo that requires terminal operators to weigh import containers within the port before their discharge. At the same time, he announced plans to require trucks to register with the BOC come January 2016. During the Government and Private Sector Coordinating Conference on Port Area Traffic Management on October 14, Lina agreed with the suggestion of truckers to have import containers that are subject to weighing mandatorily weighed within the terminals, and not by the roadside. A memorandum of agreement can then be signed with the Department of Public Works and Highways (DPWH), compelling the latter to honor weight receipts provided to truckers by terminal operators, Lina added. The weight receipts may be used to determine whether shipments are overloaded or not.
No more port congestion – Customs Lina assures BOC ready for Christmas influx The Philippine Star 18th Oct 2015
There will be no repeat of last year’s port congestion. Local ports have been told to ensure enough capacity for the ongoing cargo influx for the Christmas season and “divert” shipments if necessary as preparations mount to avoid the piling up of undelivered cargoes just like last year. “We are prepared. We are doing all we can and we are in close coordination with other agencies on it. We don’t think it (port congestion) will happen again,” Customs Commissioner Alberto Lina told The STAR in an interview. Should there be a necessity however, ports have been instructed to move excess cargoes from one port to another to free up space, also in a bid to save time and ensure their timely delivery, Customs said in a statement.
Lower House approves Customs modernization bill on 3rd reading PortCalls Asia 16th Oct 2015
The Philippine House of Representatives has approved on third and final reading the Customs Modernization and Tariff Act (CMTA), a priority measure of the Aquino administration. House Bill (HB) No. 5525, principally authored by Oriental Mindoro representative Reynaldo Umali and co-authored by 42 solons, aims to modernize the Bureau of Customs (BOC) through full automation of operations; ensure the country’s compliance with the Revised Kyoto Convention (RKC); update the tariff and customs law to more effectively address modern business and trade practices; and reduce the cost of doing business to encourage more trade investments. The counterpart bill at the Senate has yet to hurdle second reading although solons said they were committed to approving the measure when sessions resume on November 3.
Automation of PH customs bonded warehouses slated in 2016 PortCalls Asia 13th Oct 2015
The Bureau of Customs (BOC) is pushing through with plans to automate customs bonded warehouses (CBWs) in the Philippines by 2016. In a text message to PortCalls, BOC Assessment and Operations Coordinating Group deputy commissioner Atty. Agaton Teodoro Uvero confirmed that a technical working group (TWG) has been created to formulate the customs memorandum order (CMO) requiring automation of CBW operations starting next year. Automating and including CBWs in BOC’s electronic-to-mobile (e2m) system has been one of the proposed projects of the agency since early last year. BOC-accredited value-added service provider InterCommerce Network Services, Inc. (INS) president Francis Lopez, in text messages to PortCalls, said the draft memorandum is being finalized, and pilot implementation of the project is targeted for January 2016. Members of the TWG include the Customs Bonded Warehouse Operators Confederation Inc. (CBWOCI), Philippine Exporters Confederation, Inc. and INS.
Exporters oppose pre-inspection system Manila Standard Today 12th Oct 2015
The Philippine Exporters Confederation Inc. said Monday the government’s plan to revive the pre-inspection system for Philippine-bound cargoes will result in unnecessary import costs and more delays in shipments. PhilExport president Sergio Ortiz-Luis Jr. raised the concern, as the government plans to revive the PIS and its inclusion in the proposed Customs Modernization and Tariff Act. The government said the pre-inspection system would speed up the delivery of shipments, with the elimination of x-ray and other inspections at the port of destination and implementing the inspection at the port of loading, instead. “In the context of the ports in Manila, the disadvantage multiplies, in that importers will also have to suffer from delays and extra costs due to traffic, demurrage and trucking,” Ortis-Luis said.
Customs moves to speed up cargo release The Philippine Star 9th Oct 2015
In preparation for the Christmas season, the Bureau of Customs has tightened its rules on holding up suspected cargoes for inspection to fast-track their release and avoid a repeat of port last year’s congestion. “Effective immediately, shipments can only be held through a validly issued alert order. Any official, employee or person who aids in detaining a shipment in a manner not compliant with this shall be subject to administrative and criminal actions,” Customs said in a statement yesterday. Alert orders are issued to shipments which are found to contain potential illegal imports or in violation of existing trade laws. The order allows Customs to conduct personal inspection aside from the common X-ray evaluation.
Defense & Security
Palace bent on pushing BBL passage The Philippine Star 19th Oct 2015
Malacañang is determined to push the passage of the Bangsamoro Basic Law and has thanked ambassadors who expressed support for the peace process amid issues hampering the BBL, a Palace official said yesterday. Presidential Communications Operations Office Secretary Herminio Coloma gave assurance that the government would continue to work with Congress for the timely passage of the BBL. A priority measure of Malacañang, the BBL seeks to implement the peace accord signed by the government and the Moro Islamic Liberation Front (MILF) last year.
Modernizing PHL military on a shoestring budget Business Mirror 14th Oct 2015
First of three parts In the decades that spanned four administrations, including the government of Fidel V. Ramos, the Armed Forces of the Philippines (AFP) was forced to accept the reality that it was a laggard among the military troops in Southeast Asia, particularly in the area of firepower.
3 More Aussie LCHs to Enter PN Service by 2016 Q1 Defense Studies 22nd Oct 2015
Three more "Balikpapan" class LCHs (landing craft heavies) are scheduled to arrive and be commissioned in Philippine Navy (PN) service by the first quarter of 2016. These ships are the HMAS Balikpapan, HMAS Wewak and HMAS Betano. The Royal Australian Navy decommissioned these LCHs in November 2014. The three are sisters to BRP Ivatan (formerly HMAS Tarakan) and BRP Batak (ex-HMAS Brunei) which were commissioned into PN service last Aug. 10. LCHs are an extremely versatile vessel, capable of moving large amounts of cargo, personnel and equipment from larger ships to shore. A very shallow draft (two meters) allows these ships to deliver personnel and equipment to areas otherwise unreachable especially during humanitarian assistance and disaster relief (HADR) operations.
PAF to Reactivate Two OV-10 Aircraft Defense Studies 20th Oct 2015
In line with its efforts to acquire more aircraft, the Philippine Air Force (PAF) has announced it is allocating the sum of PhP16,490,363.56 for acquisition of spare parts needed for the reactivation of two Rockwell OV-10 "Bronco" attack aircraft. These planes are OV-10 with tail numbers 636 and 402. Pre-bid conference is set on Oct. 21 at 1 p.m., PAF Procurement Center Conference Room, Villamor Air Base, Pasay City. On the other hand, submission and opening of bids is on Nov. 13 at 9 a.m. at the same venue. The OV-10s are the PAF's premier ground attack aircraft. Around six to eight units are still in service.
3 Attack Crafts being Acquired for Navy as Missile System Platforms Defense Studies 20th Oct 2015
The bid opening for Philippine Navy’s three (3) Multi-purpose Attack Crafts Mk III (17-meter MPAC Mk III) is now scheduled on October 27, Department of National Defense said. This is after AFP modernization projects previously ‘held in abeyance’ were given go signal by President Aquino. The DND is applying the amount of PhP270 million through the General Appropriations Act for the acquisition of these 3 brand-new MPACs. These MPACs to be acquired will be utilized as platforms for missile launch system and other weapons. DND wants these MPACs Mk III to have provisions for remote weapon system for 12.7mm Heavy Machine Gun M2HB; and missile launch system and its respective remote operating consoles inside the craft. MPAC Mk III should also have provisions for two M60/7.62mm Light Machine Gun.
Harris Corporation Receives $10 Million Order to Provide Wideband Tactical Radios for Southeast Asia Nation Defense Studies 17th Oct 2015
Harris Corporation (NYSE:HRS) has received a $10 million order for wideband radio systems to support a Southeast Asia nation as part of its tactical communications modernization program. Harris will supply a range of products that will deliver command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) capabilities. Products include handheld, fixed and vehicular configurations of the RF-7800 and RF-7850 multiband networking radios, as well as RF-3950 ruggedized tablets and Harris hC2 battle management software. The radio systems will provide secure voice and data between fixed and tactical command posts and forward-deployed units. The radios' wideband data capabilities also support streaming video from helmet-mounted cameras. "Harris is providing our customer a turnkey, end-to-end solution that integrates the most advanced wideband tactical radios with a state-of-the-art battle management system for information superiority," said Chris Young, president, Harris Communication Systems.
Enrile Urges Defense Officials to Ask Palace to Increase DND's Budget Defense Studies 16th Oct 2015
Senate Minority Leader Juan Ponce Enrile urged the Department of National Defense (DND) on Wednesday to ask Malacanang to increase the budget for the improvement of the country’s defense capability against internal and external threats. ”Mr. Secretary, I’m telling you the amount of your budget is miniscule to the needs of this country. You better work it out and tell Malacanang this is not enough,” Enrile told DND Secretary Voltaire Gazmin during the Senate deliberations on the DND’s proposed PhP158.86 billion budget for 2016. ”We will do that your, honor,” Gazmin replied to Enrile, the former defense minister of the late former President Ferdinand Marcos. Defying hearing problem and old age, the 91-year-old Enrile lectured the DND officials for an hour and two minutes on how to handle external threats, particularly the West Philippine Sea’s territorial dispute with China.
114 M-113 EDA from US Arriving in Running, Operational Condition Defense Studies 8th Oct 2015
The 114 M-113s armored personnel carriers (APCs) coming from the United States are in running and operational condition. "All of 114 M-113s coming are operational and in running condition. However, we will still check it here before accepting them for service," said Mechanized Infantry Division (MID) public affairs office chief Major Filemon Tan in a message to the PNA. The APCs are expected to arrive in November once the contract for shipping and transportation of the vehicles have been completed. Completion of the delivery is expected by the second quarter next year. The APCs are declared "excess defense articles" meaning the Philippines did not pay for the acquisition except for the shipping and refurbishment costs. The MID operates around 343 AFVs (armored fighting vehicles) and APCs.
Economics
Annual inflation seen still short of BSP target Business World 25 Oct 2015
Private sector economists see inflation for 2015 logging in at 1.6%, slightly below the official target set by government and closer to the central bank’s projection for the full year, a recent survey of the Bangko Sentral ng Pilipinas (BSP) showed. A survey of the central bank among 28 private banks bared a 1.6% median forecast for this year’s inflation rate, which is several notches below the government’s original 2%-4% target range for 2015. Some 63% of the respondents said the general increase in the prices of widely used goods will fall below target this year, against nearly 20% who said it will be within the target range. The analysts likewise shaved off their projections for the next two years, with their forecasts reaching a midpoint at 2.8% for 2016 and 3% for 2017, which are still well within the government’s 2%-4% target range for the periods.
JLL sees new growth areas for PHL property Business World 21st Oct 2015
Top officials of real estate services firm Jones Lang LaSalle (JLL) on Wednesday brushed aside talks of a property bubble in the Philippines and dismissed fears about regional financial integration, but pointed out restrictions that continue to hamper the entry of foreign investors. At the same time, JLL executives identified warehousing and distribution as a new segment of the property market that is showing potential growth as foreign manufacturers look at the Philippines as a possible site to relocate their businesses from other Asian countries. Alastair Hughes, JLL’s Asia-Pacific chief executive officer, said properties in the Philippines were reasonably and competitively priced. “There is a bubble when property values become irrationally priced in terms of their long-term pricing,” he said in a briefing, pointing out that the rise in real estate valuations came after a long spell of conservative building following the Asian financial crisis in the late 1990s.
BOP reverts to surplus in September The Philippine Star 21st Oct 2015
The country’s balance of payments (BOP) position reverted to a surplus in September due to higher inflows from the central bank’s foreign exchange operations and robust earnings from national government deposits, data from the Bangko Sentral ng Pilipinas (BSP) showed. BSP Governor Amando Tetangco Jr. said the BOP position swung to a surplus of $219 million in September from a deficit of $450 million in August. “The BOP reverted to a surplus in the month of September, as inflows from BSP’s foreign exchange operations, income from abroad and deposits of the national government more than covered the payments for government’s foreign exchange obligations,” he said in a text message to reporters. The BOP shows a summary of a country’s transactions with the rest of the world. Its components include trade, foreign direct and portfolio investments, and even remittances from Filipinos abroad.
Philippines to tap full economic potential with US Sun.Star 21st Oct 2015
The Philippines is ready to take advantage of its credit rating upgrades, stock market performances, and good governance policies to beef up its economic ties with the United States. In a statement sent by the Philippine Embassy in Washington, the delegation said the Philippines may tap into the "full potential" of its economic relationship with the United States because of its "continued economic growth and unprecedented level of international business confidence." The private sector delegation from Manila kicked off on Monday the 4th Philippine Private Sector-led Investment Roadshow in Pittsburgh, Pennsylvania. Led by Dr. Bernardo Villegas, visiting professor at IESE Business School in Barcelona and professor at the University of Asia and the Pacific, the delegation aims to improve business links between the private sector in the US and the Philippines.
ADB: Educational policies yield mixed quality in work force Business World 20th Oct 2015
Education policies of the national government had mixed results in raising the skills of its working population, boosting their employment prospects, and improving access to schools, the Asian Development Bank (ADB) said in a new report. In the 2015 edition of its annual Key Indicators for Asia and the Pacific, the Manila-based lender said education investments of Developing Asia led to a doubling of average schooling to eight years between the years 1970 to 2010, in turn resulting in higher education levels, enrollment and literacy rates. The ADB also cited, however, the need for the Asian work force to improve their skills through specializations and additional educational years. Agricultural workers, to cite one sector, must adopt and learn technical skills to avail themselves of jobs in sectors with higher pay such as manufacturing and services. “The data reveal the simultaneous presence of under and overqualification,” the ADB said.
Philippine economic growth to fall short of target, but still ‘highest in Asia’ Business World 20th Oct 2015
Philippine economic growth will likely fall short of official targets this year and next but could still be Asia’s fastest, a bank economist said in a recent interview. The country’s gross domestic product (GDP) growth could come in at 5.7% this year -- from 6.1% in 2014 -- before picking up to “around 6%” in 2016 and 2017, said Mark Matthews, head of Research Asia at Switzerland-based Julius Baer. The government has set a 7-8% growth target for 2015 and 2016. The economy grew 5.3% last semester, slower than the 6.2% clocked in 2014’s comparable six months. Nonetheless, the country is still expected to outpace the rest of the region. “Growth will be less than 6% this year. But it will still be great... What’s the matter with 5.7%? In fact, next year and the year after, this country will have the highest growth rate among all countries in Asia because China is slowing down,” Mr. Matthews said. “Now, its number two because China is number one. Next year, the Philippines will become the fastest-growing country in Asia.”
Philippines has ‘rare kind of economic resilience’ – Moody’s The Philippine Star 13th Oct 2015
Debt watcher Moody’s Investors Service says the Philippine economy remains resilient to the current headwinds buffeting neighboring countries and emerging markets as a whole. The credit rating agency cited the country’s rare kind of economic resilience against a challenging global environment and pointed out the Philippines is well ahead of other emerging markets in terms of managing external adversities. Moody’s cited the country’s strong domestic consumption, healthy external payments position, stable banking sector, rising contribution of private-sector investments to growth, increasing per-capita income, benign inflation, and declining debt burden. “The Philippines’ Baa2 government bond rating reflects the economy’s resilience to the current headwinds buffeting neighboring countries and emerging markets as a whole,” Moody’s said in its latest report on the Philippines.
Outdated regulations cost Philippines P140B opportunity losses yearly The Philippine Star 8th Oct 2015
The Philippines loses at least P140 billion in annual opportunity cost due to cumbersome, outdated and complex business regulations for starting business, according to the World Bank. In the Philippine Economic Update, October 2015 report, the World Bank said lost productive time translates to an estimated annual opportunity cost of at least P100 billion annually in the form of forgone income, taxes, and spending. Opportunity cost of around P40 billion could likewise arise from discouraged Filipinos who could have started a business, if only the cost was reasonable. This translates to foregone employment of around 60,000, which is equivalent to about five percent of new labor force entrants every year.
Foreign chambers see FDI rising in H2 The Philippine Star 8th Oct 2015
Foreign business groups in the Philippines are optimistic the country’s net foreign direct investments (FDI) will pick up in the second half of the year as investors regain confidence along with easing port congestion problems. In a statement yesterday, the Joint Foreign Chambers (JFC) said it remained concerned over the country’s diminishing net FDI but said it is hopeful that the decline during the first half of the year is only temporary and the second half will register higher levels. The JFC said the Philippines has now managed to regain investor confidence after successfully hurdling congestion concerns that have crippled trade and scared away new investments late last year and early this year.
Energy
No energy secretary, no petro service contracts Business Mirror 18th Oct 2015
There is a delay in the awarding of new petroleum service contracts and renewable-energy deals, because Malacañang has yet to appoint a new energy secretary. At present, the Department of Energy is headed by an officer in charge (OIC), Zenaida Y. Monsada, who was appointed to act as caretaker in place of former Energy Secretary Carlos Jericho L. Petilla in July. As OIC, Monsada could not sign those deals. Thus, the OIC has no recourse but to wait for further instructions from the Palace. “I am trying to help her get the signing authority from Malacañang. I started a program to fast-track the processing of contracts, and yet, these are not moving forward,” Petilla said. Petilla is confident that “she will get the signing authority” soon.
Masinloc plant expansion commits 92 megawatts to north Luzon co-ops Business World 18th Oct 2015
AES Philippines has closed a deal to supply power to seven electric cooperatives in northern Philippines for 20 years, opening the way for a reduction in electricity rates in the area. The power supply agreement will start in 2019 and will amount to a capacity of 92 megawatts (MW), which the company will deliver from its 300-MW expansion of the Masinloc power plant in Zambales province.
GN Power raising $1 B for Bataan coal power plant The Philippine Star 14th Oct 2015
GN Power Mariveles Coal Plant Ltd Co. plans to raise as much as $1 billion by year-end to start construction of the first unit of the 2x600-megawatt (MW) Bataan coal-fired power facility in 2016. GN Power is targeting to start building the first unit of the coal facility, which is an expansion of the existing 600-MW coal-fired power plant in Mariveles, by early next year, AC Energy Holdings Inc. president and CEO John Eric T. Francia said on the sidelines of the Asia Pacific Economic Cooperation (APEC) Energy CEO meetings held here. The first 600 MW unit will cost around $1 billion, and GN Power is in the final stages in raising capital, he said. “Were hoping to close [financing] by this year. That’s our target, at least for the first unit,” Francia said. “[We will borrow] all of it. We have to fund all of it to start construction.” US-based GN Power, owned by Nauruan-American firm Power Partners Ltd. Co., partnered with Ayala subsidiary AC Energy to develop the expansion of the Bataan plant, which started operating in 2013. In January 2014, AC Energy acquired a 17 percent stake in GN Power. Other investors in the Bataan plant include Sithe Global Power LLC, a company owned by investors of The BlackStone Group.
DOE endorses 50 power projects The Philippine Star 12th Oct 2015
The Department of Energy (DOE) has issued certificates of endorsements (COE) to 50 projects as of end-August this year. Of the 50, there are 34 renewable energy projects, nine diesel-fired plants, four natural-gas fired facilities, one coal-fired plant and one co-generation power facility, data from the DOE showed. Of the renewable energy projects, 19 are hydropower projects, nine are solar projects, three are wind projects, and three are biomass projects. Data from the DOE also showed 32 companies and the Provincial Government of Ifugao were awarded the COEs as of end-August 2015.
Shell commits major projects in Philippines The Philippine Star 8th Oct 2015
Pilipinas Shell Petroleum Corp. has committed to pursue major projects in the country ranging from new facilities to its much-delayed initial public offering (IPO), its top official said. The local subsidiary of energy giant Royal Dutch Shell has lined up several projects and still continues to look for opportunities in the country, said Shell country chairman and president Edgar Chua. The company has already completed the P1-billion second phase and third phase of the Malampaya deep water gas-to-power project. This expansion will maintain the level of gas production to fulfill commitments under existing gas sales agreements until 2024, ensuring the steady supply of natural gas to power the Luzon electricity grid.
Philippines' Aboitiz Power Plans $500m Investments to Expand in SE Asia Jakarta Globe 13th Oct 2015
Aboitiz Power said it plans to invest as much as $500 million over the next five years, mainly in Indonesia, as the Philippines' second-largest power producer by capacity seeks to boost profits and expand outside its overcrowded home market. CEO Erramon Aboitiz told Reuters on Tuesday that Aboitiz was also interested in projects in Vietnam and Myanmar, which along with Indonesia the company had identified as key markets. "We've made a decision to really look at opportunities outside the Philippines," Aboitiz said on the sidelines of an APEC energy ministers' meeting in the island of Cebu. "Indonesia will likely take the lion's share of the $500 million that Aboitiz Power is allocating for overseas investments," he said, adding that the $500 million would come from the company's own cash reserves or existing businesses. Aboitiz Power, a unit of one of the Philippines' biggest conglomerates Aboitiz Equity Ventures, recently agreed to take part in feasibility studies with Indonesian firm SN Power AS and Energi Infranusantara for a hydropower generation project along the Lariang River in Central Sulawesi. Through its Singapore-based unit, AboitizPower International, the company is also involved in a 110 megawatts greenfield geothermal plant project with Medco Power Indonesia. "We've looked at it and we think it has a lot of promise," he said, referring to the project with Medco, which is still in the exploration phase. Aboitiz Power has yet to identify any potential projects in Vietnam and Myanmar, but was actively looking, the CEO said. "We're now in talks with potential partners in Myanmar but frankly there's nothing firm at this point," he added.
Financial Services
Banks report tighter credit standards in Q3 Business Mirror 26 Oct 2015
Even tighter credit standards were noted across real-estate loans in the third quarter this year, as banks passed on to their borrowers the more stringent oversight exercised by regulators on real-estate loans during the period. In a recent report, the central bank said lenders across the country reported a net tightening of their overall credit standards for real-estate loans in the July-to-September period. This was the 13th consecutive quarter that the banks indicated a net tightening of standards in real-estate lending under the diffusion index approach, where the number of banks that indicated tighter credit standards proved more numberous than banks that indicated otherwise.
New platform for financial inclusion Philippine Daily Inquirer 26 Oct 2015
Around 500 representatives from government agencies, financial service industry, microfinance institutions, non-profit organizations, technology providers and other key stakeholders will gather in Metro Manila this week for the launch of a new platform to accelerate financial inclusion in the Asia-Pacific region. The inaugural Asia-Pacific Financial Inclusion Summit which will held at the Makati Shangril-La in Makati from October 27 to 29 is organized by the Citi Foundation, The Foundation for Development Cooperation (FDC) and the Financial Times, in partnership with the Banking With The Poor Network. It is supported by host partner Bangko Sentral ng Pilipinas (BSP). The summit is a consolidation of two leading fora in the Asia Pacific region – the Citi-FT Financial Education Summit and the Asia Microfinance Forum. The new platform seeks to serve as a catalyst for debate, knowledge and best practices sharing, and the formation of partnerships among practitioners, policy-makers and stakeholders to deliver impact and achieve scale in financial inclusion and drive economic progress in the region.
Moody’s cites dev’t tasks for long term Business World 12th Oct 2015
The Philippines needs to address infrastructure bottlenecks and institutionalize policy reforms to ensure the economic growth it now enjoys will be sustained in the long run, debt watcher Moody’s Investors Service said. Moody’s said the Philippines’ “Baa2” rating -- two notches into investment grade -- reflects the local economy’s resilience from headwinds its neighbors and emerging markets face. The debt watcher said sustainability of the country’s growth story in the long run hinges on its ability to address infrastructure bottlenecks. “The effectiveness of infrastructure development will determine the long-term prospects for economic diversification and ultimately growth.”
Most Pinoys still rely on informal credit – World Bank The Philippine Star 22nd Oct 2015
A majority of Filipinos still prefer informal sources of credit for their basic needs rather than using formal or banking sources, a World Bank survey showed. Based on the survey, Filipinos are more likely to use informal credit and savings services, including “5-6” and paluwagan, than formal lending services. The survey showed 78 percent of respondents use informal financial series and 56 percent use informal credit only. Another 13 percent tap the microfinance sector and 12 percent use both formal and informal credit. The World Bank noted those residing in urban areas are significantly more likely to use informal credit while rural residents account for the majority of users of informal savings products.
PPP proponents gain access to capital markets to finance projects The Philippine Star 21st Oct 2015
The country’s securities regulators are preparing the framework that will allow companies engaged in public-private partnership (PPP) projects to raise funds through equities and bond issuances. Philippine Stock Exchange (PSE) president Hans Sicat is hopeful the framework would be ready by next year. “We are pleased to take part in this continuing initiative with the PPP Center, SEC, and the ADB. Now that we have covered the opportunities and risks for capital raising through securities and bond issuances, we hope that the actual framework for both will be forthcoming,” Sicat said. During a forum entitled “Accessing the Philippine Capital Markets for PPPs,” the speakers and panelists from the government and private sector discussed the ideal structure for PPP project bonds as a source of financing.
Access to funds still a challenge for small, mid-sized ventures Business World 19th Oct 2015
Access to financing remains a challenge for small- and medium-scale enterprises (SMEs) in the Philippines and elsewhere in Asia and the Pacific, even as business conditions have improved and notwithstanding moves to provide funding options for this sector, the Asian Development Bank (ADB) said in a recent report that noted that banks remain reluctant to lend to this sector despite more stringent regulatory requirements.
Philippine banks immune from contagion, says Moodys The Philippine Star 19th Oct 2015
Credit rating agency Moody’s Investors Service believes Philippine banks are immune from external shocks brought about by the global economic slowdown. In its latest credit analysis on the Philippines, Moody’s said the country’s banking system is a source of credit strength as it is “virtually immune to contagion from external shocks.” Moody’s said the country’s banking system is largely deposit-funded and aided in part by the steady flow of remittance from overseas Filipinos. It added the local banking system exhibits a lack of dependence on external funding and low exposure to the export sector.
Bourse working to prevent technical glitches from recurring -- PSE chief Business World 18th Oct 2015
The Philippine Stock Exchange (PSE) has tapped a third party to assist the bourse in resolving technical issues that disrupted trading at the height of the stock market sell-off in August. PSE President Hans B. Sicat told reporters last week the exchange will name the company soon, with the analysis expected to be completed in three to five weeks. “Obviously, the review will focus on what happened. They will take a look at computer logs, the operational symptoms around those days and do some reverse engineering or reverse analysis just to make sure that what we corrected for is indeed what needs to be corrected,” Mr. Sicat said. “If there is anything else, we will be happy to take the comments so we can also plug any other items.” SEC Chairperson Teresita J. Herbosa said in a recent interview that the corporate regulator may require the bourse to change some of the components of the trading infrastructure.
Congress willing to lift bank secrecy on deposits The Philippine Star 16th Oct 2015
The House of Representatives is willing to consider the proposal of the Bureau of Internal Revenue (BIR) to lift bank secrecy on deposits, particularly in the case of suspected tax evaders. BIR commissioner Kim Henares floated the proposal apparently in exchange for moves in the House and the Senate to reduce individual and corporate income tax rates. “We can consider it. I am personally willing to sponsor the bill so it can be discussed as soon as possible. If it is truly the solution for BIR to finally meet its targets, then we should take a look at it seriously,” Marikina Rep. Miro Quimbo, ways and means committee chairman, said. “But the status quo on individual income tax is unacceptable. We cannot let our salaried workers keep shouldering 90 percent of the tax burden while many entrepreneurs and professionals do not pay taxes,” he said.
Philippine banks 9th strongest in Asia Pacific The Philippine Star 16th Oct 2015
Philippine banks have been ranked 9th in Asia Pacific in terms of strength, The Asian Banker reported yesterday. The Philippines got a score of 2.90 in the Asian Banker (AB) 500 Strongest Bank by Balance Sheet Ranking 2015. The AB 500 is an evaluation of the 500 largest banks in the Asia Pacific region. When measured on an asset-weighted basis, banks in Hong Kong achieved an average strength score of 3.74 out of five. Hong Kong had the largest number of banks in the top 10 strongest banks list, with four banks in total. Singapore placed second with a score of 3.7 followed by China with 3.3, Macau with 3.3, New Zealand with 3.2, Malaysia with 3.2, Thailand with 3, and Australia with 3.
Finance dep’t signals backing for 30% public float Business World 15th Oct 2015
Minimum public ownership of listed companies should rise to at least 30% to improve price discovery and deepen the country’s capital markets, Finance Secretary Cesar V. Purisima said yesterday. Mr. Purisima said in his keynote speech at the Corporate Governance Forum 2015 that the current average of 25% for public float should rise. “The float is still not deep enough. To be truly public, I think we need to further expand that. The market needs to be deep enough so that there is real price discovery,” Mr. Purisima said. He added the minimum public ownership should be increased to “maybe 30%.” “It’s a step at a time. Other countries have higher public float,” he said. Mr. Purisima said it will be up to the Securities and Exchange Commission (SEC) to decide whether it will increase the minimum public float by at least 10% for listed companies.
Fitch hikes Landbank, DBP credit outlooks The Philippine Star 14th Oct 2015
Fitch Ratings has raised its credit outlooks on Land Bank of the Philippines (Landbank) and on Development Bank of the Philippines (DBP) amid the country’s improved governance standards and global competitiveness. In a statement, the debt watcher said the outlooks on the two banks have been revised to “positive” from “stable,” while the credit ratings on both firms were affirmed at “BB+.” Fitch explained the outlooks were adjusted to make them in line with a recent upgrade in the Philippines’ sovereign outlook to “positive” from “stable.” With better prospects, the country is expected to have the ability to provide support to the banking sector if necessary.
BSP extends relief to typhoon-hit banks The Philippine Star 13th Oct 2015
The Bangko Sentral ng Pilipinas (BSP) has extended regulatory relief and rediscount relief measures to banks located in areas affected by Typhoon Ineng that entered the country last August. Entitled to the relief are banks in provinces in Northern and Central Luzon as well as the Cordillera Autonomous Region (CAR) devastated by Typhoon Ineng identified by the National Disaster Risk Reduction and Management Council (NDRRMC). These include Ilocos Norte, Ilocos Sur, La Union, Pangasinan, Batanes, Cagayan, Isabela, Nueva Vizcaya, Bataan, Bulacan, Nueva Ecija, Zambales, Laguna, Oriental Mindoro, Abra, Apayao, Baguio City, Benguet, Ifugao, Kalinga, and Mountain Province. The BSP approved the temporary relief measures for the thrift banks as well as rural and cooperative banks last Sept. 23.
National payments system in the works Business World 12th Oct 2015
The framework for the envisioned national retail payments system (NRPS) could be ready by next month, a BancNet official said, in a bid to roll out the system by next year as the financial industry aims to have an integrated cashless network in the next three to five years. The Bangko Sentral ng Pilipinas (BSP) last month said it aims to finish laying the foundation of the NRPS by yearend in partnership with banks, payments providers and telecommunication companies. “We’re looking more at the framework and constitution of this national payments system. We’re targeting by November,” BancNet chairman and electronic channels group head at Bank of the Philippine Islands Manuel C. Tagaza said in a recent interview. “There are a lot of activities now because the direction has been set.
Earnings of rural, coop banks down 16.8% in first half The Philippine Star 12th Oct 2015
Earnings of rural and cooperative banks fell 16.8 percent to P1.64 billion in the first half from P1.97 billion in the same period last year amid the consolidation in the industry and the exit of weak players, data from the Bangko Sentral ng Pilipinas (BSP) showed. The interest income of rural and cooperative banks fell 19.8 percent to P9.84 billion in the first six months from P12.27 billion in the same period last year. On the other hand, interest expense plunged 29.5 percent to P2.01 billion from P2.85 billion. Non-interest income reached P2.91 billion from January to June, 3.3 percent lower compared to P3.01 billion a year ago due to lower dividend, fees and commissions income; lower profits from foreign exchange operations; and lower gains on financial assets and liabilities held for trading.
BSP tightens watch on banks’ boards, officers Business World 11th Oct 2015
The Bangko Sentral ng Pilipinas (BSP) has told elected directors of banks and financial institutions to prove they are qualified to hold these seats, the regulator said in a new order. In Circular No. 887, the BSP said elected directors have the burden to prove they meet the minimum qualifications prescribed by the central bank. “Non-submission of complete documentary requirements within the prescribed period shall be construed as his/her failure to establish his/her qualifications for the position and result in his/her removal from the Board,” the central bank said. Under the Manual of Regulations for Banks, a director should be at least 25 years old who finished college and has at least five years business experience, has attended a seminar on corporate governance, and must be “fit and proper” for the position.
PDIC charter amendments may not pass due to time constraints Business World 8th Oct 2015
A proposed law in the Senate that seeks to amend the charter of the Philippine Deposit Insurance Corp. is unlikely to be passed before yearend as earlier targeted as lawmakers scramble to finish budget deliberations and debates on the law on the proposed Bangsamoro Region. Senator Sergio R. Osmeña III, chairman of the Senate Committee on Banks, Financial Institutions & Currencies, noted on Thursday the tight schedule of lawmakers in the Senate for the remaining months of the year. “[There are] no sticky issues but the Senate schedule for November and December [is] very tight -- national budget, BBL (Bangsamoro Basic Law), new debates on Mamasapano massacre, APEC (Asia-Pacific Economic Cooperation) holiday,” Mr. Osmeña said in a text message when asked on the prospects for the proposal.
BPI targets to widen use of bank’s mobile platform Business World 8th Oct 2015
Ayala-led Bank of the Philippine Islands (BPI) is eyeing to widen the penetration rate of its mobile banking business, targeting a 40% increase in users next year from the current level as it seeks to expand services available in the platform. BPI Vice-President and Division Head of Electronic Channels Carlo Carmelo S. Gatuslao said current active users of its mobile banking platform are at “close to a million” out of BPI’s over seven million account holders. Last year, the number stood at over 600,000 and the target earlier set for 2015 is to grow its users to around 850,000. “We expect our digital channel enrollment and usage to grow. We will offer more services beyond what we have now... We’ve already surpassed our target for this year. We’ve targeted a 40% growth [in 2015] but we’ve surpassed it. Next year, it should not be less than 40%,” Mr. Gatuslao said.
Food & Agriculture
Typhoon Lando aftermath: Agriculture damage rises to P6.4 B The Philippine Star 22nd Oct 2015
The cost of damage to agriculture in areas affected by Typhoon Lando has risen to P6.4 billion with the rice subsector sustaining the most damage, the Department of Agriculture (DA) reported yesterday. Damage incurred on rice soared to P5.7 billion with 383, 668 metric tons of production (MT) lost. Damaged were 272, 006 hectares, 269, 694 hectares of which have chances of recovery. Losses incurred on corn crops reached P88.32 million with 5,954 MT of produce lost. Affected were 13, 051 hectares, 12,634 hectares which may still recover. The value of damage to high value crops is now placed at P528.9 million with 21,836 MT of produce lost. Affected were 4,233 hectares of cultivation area, 2,808 hectares of which may still recover.
House panel OKs bill extending ACEF fund to 2022 The Philippine Star 21st Oct 2015
The House Committee on Agriculture and Food has approved a measure extending the Agricultural Competitiveness Enhancement Fund (ACEF) to 2022 to allow the government to use the remaining P2 billion for the sector. The ACEF is allocated by Congress from the proceeds of the importation of minimum access volume to be utilized for the development of farm or agricultural infrastructure and machinery, creation of agricultural social infrastructure, implementation of other projects and support for enhancement of global trade competitiveness and to improve the lives of small farmers and other stakeholders in the sector. At least P2 billion remains as the current balance of the ACEF, which when utilized and managed well, can spur agricultural competitiveness locally and globally, according to the authors of the bill.
Population growth threatens PHL rice self-sufficiency goal Business Mirror 18th Oct 2015
The current El Niño episode may have been the single biggest factor behind the decision of the government to import more rice for this year and 2016. In the next five years, however, experts warned that the increase in the country’s population would make it more difficult for the Philippines to avoid the international rice market. The drought caused by El Niño has forced the Philippines to front-load its importation of 500,000 metric tons (MT) of rice for next year. The National Economic and Development Authority (Neda) said the government is looking to buy an additional 1 million metric tons (MMT) of imported rice for 2016.
Brace for dry spell, sugar growers told The Philippine Star 8th Oct 2015
The Sugar Regulatory Administration yesterday urged the sugar industry to implement preemptive measures to counter the destructive effects of the strengthening dry spell as sugarcane cultivation areas nationwide are expected to be badly hit. SRA administrator Ma. Regina Martin is encouraging sugarcane farmers to plant early and have their canes milled in the earlier part of the current cropping season to benefit from higher sugar recovery. Canes brought in for milling in the middle and late part of the sugar production season risk having lower sugar content and faster sugar quality deterioration because of the hot and dry planting conditions, she said.
DA intensifying GAP promotion initiatives for Asean integration Sun Star 19th Oct 2015
With the looming Asean economic integration, all stakeholders of the agriculture sector, not only farmers, should be well-informed of the good agricultural practices (GAP) that could help the local industry cope with the challenges of global free trade. This was stressed by Renato Manantan, regional executive director of the Department of Agriculture (DA) Negros Island Region.
House committee approves bill extending ACEF Business Mirror 15th Oct 2015
The House Committee on Agriculture and Food has approved a measure extending the Agricultural Competitiveness Enhancement Fund (Acef) to 2022. House Bill (HB) 6162, principally authored by Chairman of the House Committee on Agriculture and Food and Nationalist People’s Coalition Rep. Mark Llandro L. Mendoza of Batangas City, was approved in substitution of the original three similar bills and four House resolutions.
DA-NIR working on long-term agri dev’t plan Sun Star 14th Oct 2015
The Department of Agriculture (DA) Negros Island Region which covers the provinces of Negros Occidental and Oriental under the newly-created Negros Island Region (NIR), is working on a long-term regional agriculture development plan. The DA interim structure for NIR has started its transition period operation last October 1, with Renato Manantan as designated regional executive director.
Agri dept eyes facility for export processing Sun Star 13th Oct 2015
The Department of Agriculture (DA) is looking at the possibility of establishing a one-stop-shop for export processing of agricultural produce in Mindanao. The move came after the Mindanao business community through the recently concluded 24th Business Conference (Minbizcon) 2015 last September 2, to 3, 2015 in Dipolog City adopted a resolution urging the agriculture department to establish the facility.
DA intensifies cloud seeding operations Manila Bulletin 12th Oct 2015
The Department of Agriculture (DA) has intensified its cloud seeding operations in strategic areas nationwide to save crops and other products from the harsh effects of El Niño. “We will seed all (of the) seedable clouds; we will waste no opportunity,” DA Secretary Proceso Alcala said.
Health & Life Sciences
Dengue death toll nears 300 – DOH The Philippine Star 8th Oct 2015
Dengue has claimed the lives of 269 people so far this year, Health Secretary Janette Garin said yesterday. “That is the number of fatalities from the reported 92,807 cases. But that number is lower than the deaths we had last year, and in 2012 and 2013, when the incidence of dengue peaked,” Garin told reporters. She said dengue incidence in Tarlac, Cavite and Apayao has reached an alarming level. “But it is now under control and is going down,” she said. Most of the cases were recorded in Central Luzon (14,127), Calabarzon (14,082), Metro Manila (10,385), Ilocos Region (8,136), Northern Mindanao (6,451), Cagayan Valley (5,677) and Soccsksargen (5,552).
Big growth in outsourced medical services seen Business World 8th Oct 2015
Leaders of the Philippine outsourcing industry said on Monday they expect a big increase in business as the result of a new, highly detailed medical diagnosis coding system adopted by the US for insurance claims. Dan Reyes, chairman of the IT & Business Process Association of the Philippines, said the new US coding system will open up more processing jobs and the Philippines stands to gain because of its large pool of graduates in medical-related fields. Earnings have jumped 30 percent a year for the Philippine sector providing medical billing and other services to US companies, making it the fastest growing of outsourced services, said Jose Mari Mercado, the association’s president and CEO. It is followed by information technology, finance and accounting and contact-center operations.
Haze from Indonesia blankets Mindanao cities Inquirer 20th Oct 2015
A thick haze believed caused by forest fires in Indonesia, now blankets the skies in this city and some parts of Mindanao. Gerry Pedrico of the Philippine Atmospheric, Geophysical and Astronomical Services Administration in Southern Mindanao told the Inquirer that the station in Davao region had been monitoring the haze in the past few days. “We were able to see the haze over Davao City since October 17,” Pedrico said. The same phenomena is experienced in General Santos City, Cagayan de Oro City and nearby towns.
‘Health ideal and buying medical insurance still unbridged’ Business Mirror 13th Oct 2015
The Philippines again topped an insurer’s annual health index survey in Asia for 2015, indicating that Filipinos have the highest awareness of the importance of good health in achieving their goals for financial freedom. However, despite having the highest awareness among Asian markets surveyed by Sun Life Financial, Filipinos are among the lowest in doing something to improve their health and prepare for a life-threatening medical crisis.
Health metrics that matter Business World 11th Oct 2015
By the end of the Aquino administration, the Department of Health (DoH) would already have a budget almost five times more than it began to receive at the start of President Benigno S. C. Aquino III’s term, should the proposed P122.7-billion health budget be approved this year. This is a record high in the history of the DoH budget. But the more difficult task of ensuring that resources actually translate to health outcomes still remains. This is, among others, due to a huge mismatch between DoH programs and the primary causes of mortality and morbidity. The top three causes of deaths in the Philippines, namely diseases of the heart, diseases of the vascular system, and malignant neoplasms, have been the same for more than a decade and are continuously increasing the number of deaths every year, yet none of DoH’s well-funded programs deals with the prevention of these conditions.
DOH intensifies anti-dengue campaign CNN Philippines 10th Oct 2015
The Department of Health (DOH) is strengthening its anti-dengue campaign, following a 23.5-percent rise in dengue cases nationwide. As of September 19, the DOH recorded 92,807 dengue cases nationwide — 23.5 percent higher that last year's figure. Most of the cases recorded are in Central Luzon, followed by Calabarzon and the National Capital Region. Health Secretary Janette Garin said she expected more dengue cases in 2016 as the threat would be amplified by the long dry spell. She added the dengue budget of the DOH for next year increased by 25 percent in anticipation of more cases next year.The DOH also plans to distribute 10,000 insecticide-treated screens to selected public elementary schools nationwide.
Govt to spend P1B to fight HIV epidemic next year Interaksyon 10th Oct 2015
The government budget to treat HIV/AIDS cases will breach the P1 billion mark next year, “the price the Philippines has to pay for reportedly having one of fast growing HIV epidemics in the world,” Senate President Pro-Tempore Ralph G. Recto said Saturday. The budget for combating HIV/AIDS is pegged at P1.08 billion for 2016, almost double the amount allocated this year. It will fund treatment and testing of 35,000 confirmed and suspected cases, Recto said, citing a Senate briefer on next year’s public health spending. Half, or P500 million, of the HIV/AIDS fund will be used to buy anti-retroviral drugs. The rest will go to test kits and reagents (P250 million), surveillance (P50 million), and local prevention programs (P200 million). Recto said this “budgetary item may have to be increased because other diseases like dengue are also included in the fund to combat infectious diseases.”
ICT
MPIC affiliate eyes partnership with Salim Group Business World 18th Oct 2015
Metro Pacific Investments Corp.’s (MPIC) new information technology (IT) affiliate Indra Philippines, Inc. is eyeing a partnership with Indonesia’s Salim Group to kickstart its expansion in Southeast Asia. “They’re very good in IT defense-related businesses: radar, avionics, so they’re looking at that for larger opportunity, but it’s really an IT company,” MPIC Chairman Manuel V. Pangilinan told reporters over the weekend when asked about Indra’s expansion plans. Pressed for specific countries, he replied: “The entire Southeast Asia. I think they will partner with Salim Group in Indonesia and of course in Manila, Meralco (Manila Electric Co.) and MPIC.”
Telstra in PHL: a threat to TELCO giants? Business Mirror 12th Oct 2015
Recently, San Miguel Corp. (SMC) announced its plan to launch telecommunications services in the Philippines, saying it continues to be in talks with Australia’s largest telecom player, Telstra Corp. Ltd. The food-to-infrastructure firm’s chief said his company will soon launch the new network player, vowing to the provide better services than the two incumbents. The telco regulator frequently receives complaints about the services of the network providers. “We are building a network that will provide our countrymen a good network that will at least work. It will be a better network than the two current networks,” SMC President and COO Ramon S. Ang said. He did not disclose any specific plans for the company. Sources even said that nothing has been signed between the two parties but he promised to deliver better telecommunication services versus the ones being offered by the two network players.
Small businesses not investing in tech apps, security Viet Nam News 13th Oct 2015
Small and medium-sized enterprises (SMEs) in the city are neglecting to use information and technology applications and information security, said Dang Vu Tuan, vice director of Ha Noi's Department for Information and Communications. Tuan said SMEs account for about 95 per cent of the city's 117,000 enterprises, but only a quarter of them had annual plans for IT application, while only about 7 per cent had internal regulations for information security. He said a survey conducted by the department this year showed that almost all SMEs had installed devices for Internet connection and anti-virus programmes, but few used systematic information security solutions. The enterprises spent about 0.15 to 0.3 per cent of their revenue on IT application, primarily on devices and internet services, according to the survey. They spent less money on upgrading software programmes and data management. More than 90 per cent of surveyed enterprises use free e-mail accounts.
CtrlShift to manage sales for Microsoft in Singapore, Thailand and the Philippines mumbrella 9th Oct 2015
CtrlShift, the ad tech firm formed from the merger of AdzCentral, Better Digital and Asia Digital Ventures in January, has announced an expanded partnership with Microsoft to sell the company’s inventory in Singapore, Thailand and the Philippines.
Infrastructure
DOTC pursues government buyout of MRT-3 The Philippine Star 22nd Oct 2015
The Department of Transportation and Communications (DOTC) is looking to execute the takeover of the Metro Transit Line 3 (MRT-3) by pursuing the buy out of the train line’s private shareholders by early next year. During a forum yesterday, DOTC Secretary Joseph Abaya said the agency would pursue the directive of President Aquino to undertake the equity value buy out (EVBO) of the private shareholders of the MRT-3. “Execution might happen early next year,” he said. To execute the EVBO, the DOTC would need to get the approval of the Department of Finance (DOF) as well as government financial institutions (GFIs) Land Bank of the Philippines and Development Bank of the Philippines (DBP). The GFIs hold an 80-percent economic interest in Metro Rail Transit Corp. (MRTC). Private shareholders led by MRT Holdings II Inc. have a 100 percent stake in MRTC.
Subic Freeport adjudged best in Asia The Philippine Star 21st Oct 2015
The Subic Bay Freeport, has been recognized as the best in Asia by a publication of London’s The Financial Times. Subic Bay Metropolitan Authority (SBMA) chairman and administrator Roberto Garcia said the freeport was declared as Asia’s overall winner in the Global Free Zone of the Year 2015 award while also receiving commendations for infrastructure developments and reinvestment. Garcia said the awards highlight the freeport’s attractiveness and potential as an investment site and also validates the strategies that SBMA has undertaken to spur the zone towards further growth.
2016 polls seen hurting infrastructure growth Business Mirror 21st Oct 2015
The 2016 national elections will likely derail the country’s infrastructure development due to policy conflicts, the BMI Research of Fitch Ratings said. “We expect growth to moderate beyond 2015, as the elections would disrupt policy continuity. A change in leadership would also signal a review of current projects, which will lead to project delays,” the research agency said. It will, likewise, be limited by the recent ruling of the Supreme Court against the Disbursement Acceleration Program (DAP) of Mr. Aquino. “The Supreme Court’s ruling on some of the acts under the Disbursement Acceleration Program as unconstitutional, will also limit spending on infrastructure by public agencies,” BMI Research said.
Government infra spending grows but falls short Business World 19th Oct 2015
Construction works of the Department of Public Works and Highways (DPWH) drove state infrastructure spending to rise by nearly a third in August, but disbursements still fell short of target, according to data released yesterday by the Department of Budget and Management (DBM). Public spending on infrastructure reached P25.4 billion in August, 29.2% more than the P19.7 billion spent in 2014’s comparable month. The amount, however, was still 7% short of the P27.4 billion programmed for the month and 33.7% less than the P38.3 billion disbursed in July.
DoTC seeking Japanese firms for LRT-1 train supply deal Business World 19th Oct 2015
The transporation department is inviting Japanese firms to bid to supply 120 new trains for the Light Rail Transit (LRT) Line 1, which will accommodate higher passenger volumes once the tandem of the Ayala and Metro Pacific groups extends the line to Bacoor, Cavite by 2020.
Infra spending slow Manila Standard Today 16th Oct 2015
Infrastructure spending rose 30 percent in August but still fell short of the government’s target, Budget Department data show Friday. Infrastructure and capital outlays increased 29.2 percent to P25.4 billion in august from P19.7 billion on year. The figure, however, was P2 billion or 7.3 percent short of the government’s target of P27.4 billion for infrastructure spending in August. Budget Secretary Florencio Abad said the Public Works and Highways and National Defense improved their utilization rates for notices of cash allocation in August.
PH needs ‘transformational infrastructure’ Philippine Daily Inquirer 15th Oct 2015
Businessman Enrique K. Razon Jr.—one of the country’s wealthiest men—isn’t worried about who the next Philippine president will be. After all, he is known to cultivate strong ties with whoever the current Malacañang Palace tenant is. But seven months before the hotly contested 2016 presidential elections, the ports and gaming magnate already knows what he wants from the next president. “If the next president ends up doing a really good job, it will be because he or she will build transformational infrastructure,” Razon said in an interview with the Inquirer during the 2015 Forbes CEO Global Conference. “I want a leader who will focus on catching up in [terms of] badly needed infrastructure that we lack.” As the chair and CEO of International Container Terminal Services Inc., Razon knows whence he speaks. His flagship ports business was hit last year by an economy-crippling cargo congestion problem aggravated by a local government truck ban and worsened by the lack of alternative roads for trucks to move cargo into and out of his port.
Second local gov’t-initiated PPP project offered to investors Business World 12th Oct 2015
A town in Cagayan province has rolled out an P84-million water infrastructure project -- the second public-private partnership (PPP) project initiated by a local government unit (LGU). The municipality of Baggao, in an invitation to prequalify and bid, sought interested investors to apply for prequalification for the Baggao Water Supply Project. The invitation, which was first published on Oct. 9, stated that the project “involves the provision of potable piped water supply service to the households in the municipality.” It added that the project also includes “bulk water source development, transmission and distribution to individual household connections.”
Transportation chief sees traffic solution in build-operate-transfer scheme PIA 10th Oct 2015
The Philippine government now has an answer to the worsening traffic congestion in the country: the build-operate-transfer (BOT) scheme. Transportation Secretary Joseph Abaya said this on Thursday at the sidelines of the Asia-Pacific Economic Cooperation (APEC) Transportation Ministerial Meeting being held here. According to Secretary Abaya, the lack of investment in infrastructure and the development of roads in the past years have contributed to the worsening traffic condition not only in the capital city but also in other major cities, including Cebu and Davao. The transportation chief noted that infrastructure was not a priority during the past decades. “Compared to other countries and cities, Manila has no investment for infrastructure," he said in an interview with reporters covering the APEC meeting. "It was simply not a priority.”
Philippines to modernise ageing Manila airport Bangkok Post 9th Oct 2015
The Philippine government is considering bringing in investors to modernise Manila’s 33-year-old airport as President Benigno Aquino tries to upgrade the country’s infrastructure. Companies will be brought in on 15- to 20-year concessions to invest more than 120 billion pesos (93 billion baht) to upgrade Ninoy Aquino International Airport (NAIA), Transportation Secretary Joseph Emilio Abaya said in an interview. That will enable the airport to meet projected traffic of 51.4 million passengers a year by 2037, from about 35 million now. Mr Abaya said President Aquino may soon grant approval to spruce up the facility, named after Aquino's father, who was assassinated on the airport's tarmac in August 1983. Airports in Hong Kong and Singapore also are upgrading by building new runways and terminals as Asia's economic growth boosts passenger traffic, choking facilities that have outgrown their initial capacity.
Timetable for Davao port PPP project consultations firmed up Business World 9th Oct 2015
The transportation department has released the initial auction timetable for the first seaport public-private partnership (PPP) project under the Aquino administration, setting consultations with bidders towards the end of the month. Under General Bid Bulletin No. 09-2015 for the P18.99-billion deal to modernize the Davao Sasa Port, there will be an initial site visit from Oct. 19 to 23, followed by submission of bidders’ comments on the first draft of concession agreement by Oct. 21. A pre-bid conference will be held on Oct. 26 and the first round of one-on-one consultations will run from Oct. 27 to 29.
Manufacturing
Manufacturing recovers after 3-month slide The Philippine Star 10th Oct 2015
The manufacturing sector recovered in August after three consecutive months of decline on the strength of the boom in construction activities and high demand for automotive products. Latest data from the Philippine Statistics Authority’s Monthly Integrated Survey of Selected Industries showed the manufacturing sector’s Volume of Production Index (VoPI) increased 3.7 percent in August. The National Economic and Development Authority (NEDA) said the increase is a big improvement from the sector’s performance since May but remains behind the 5.7 percent growth posted in the same period last year. For consumer goods, manufacture of beverages led the growth in value of net sales after posting a 19.1 percent gain in August while tobacco also registered a double-digit growth in both value and volume of net sales. For intermediate goods, wood posted 37.9 percent and 11.8 percent increase in volume and value of net sales, respectively while capital goods including fabricated metal products grew 22.3 percent and 24.2 percent in volume and value of net sales, respectively.
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