| Regional Affairs
ASEAN role in PHL trade to grow further -- DoF Business World Online 9th May 2016
The Philippines will become increasingly dependent on Southeast Asian countries for imported goods amid the region’s economic integration, the Department of Finance (DoF) chief economist said. In an internal economic bulletin dated April 26, Finance Undersecretary Gil S. Beltran noted that East Asia and the Association of Southeast Asian Nations (ASEAN) accounted for the largest increment in the country’s imports in February. “This will continue as the establishment of the ASEAN Economic Community will provide a well-integrated regional economy that will enhance trading activities among country members.” Latest data from the Philippine Statistics Authority show the country’s import bill increased 1.2% to $5.414 billion in February from the $5.351 billion recorded a year earlier. The Philippines sourced 65.2% of its total imports from East Asia and the ASEAN region. Shipments from East Asia increased 8.9% to $2.417 billion, while purchases from ASEAN countries rose 10.4% to $1.429 billion. By country, traditional trading partners China, Japan and United States continued to account for the largest shares. The Philippines, however, cut its imports from the US by 15.7% to $513.35 million.
Demographics, ASEAN single market to work in PHL’s favor -- Purisima Business World Online 6th May 2016
The Philippines should remain a preferred investment destination, as reforms complement its favorable demography and integration with other Southeast Asian economies, the Secretary of Finance said. “The Philippines is a market that you should not miss,” Secretary Cesar V. Purisima said during the annual meeting of advisory firm TAEL Partners in Penang, Malaysia last April 28. “I’m bullish about the country because the change that President [Benigno S.C. Aquino III] brought is coming at the right time -- at the right time because one, our demography is favorable and, second, because of ASEAN (the Association of Southeast Asian Nations).” Mr. Purisima touted the Philippines as having the youngest population in Asia, excluding smaller countries like Timor-Leste, aside from having the “right” macroeconomic and fiscal fundamentals. The economic integration of the ASEAN, meanwhile, supposedly presents the Philippines an opportunity to expand its industries by cooperating with other Southeast Asian countries.
National Affairs
3-way fight seen for House Speaker Inquirer 11th May 2016
A three-way fight is looming in the race for House Speaker in the 17th Congress as presumptive President Rodrigo Duterte moves to establish a “super majority” to repel any impeachment attempt from disgruntled groups. The sentimental favorite is Duterte’s friend, former Transportation Secretary Pantaleon Alvarez of PDP-Laban, who won the congressional race in the first district of Davao del Norte. But the practical choice is Duterte’s kin, Davao City Rep. Karlo Nograles, of the National Unity Party (NUP), who claimed to have gathered at least half of the expected 300 House members. A long-shot bet is Speaker Feliciano Belmonte Jr. of the Liberal Party (LP). The NUP secretary, Reginald Velasco, said Alvarez, who served in Congress from 1998 to 2001, has to prove that he could muster the votes from other political parties. He said Alvarez is so far the only PDP-Laban member in the 17th Congress. In a phone interview, Nograles said the NUP with its nucleus of 20 members and 20 allied party-list members, would serve as the lead party in a Duterte coalition.
Duterte transition team formed, holds first meeting Rappler 11th May 2016
The members of Rodrigo Duterte's Transition Committee were finalized on Wednesday, May 11, following a call from President Benigno Aquino III to Duterte's staff to get started on the transition between administrations. Duterte spokesman Peter Laviña posted the names of the committee members on his Facebook page. They include himself, Duterte's executive assistant Christopher "Bong" Go, campaign manager and Maribojoc Mayor Leoncio "Jun" Evasco, former agriculture secretary Carlos "Sonny" Dominguez, and lawyers Salvador "Bingbong" Medialdea and Loreto Ata. Dominguez, a childhood friend of Duterte's, also served as his campaign's finance head. The committee held their first meeting on Wednesday at the Marco Polo Hotel in Davao City. The meeting happened a day after Go received a call from Aquino informing him that he intends to issue an administrative order to facilitate a smooth transition, designating Executive Secretary Paquito Ochoa Jr as the head of his transition team. Aquino's and Duterte's teams are supposed to coordinate with each other as Duterte's proclamation date, June 30, draws near.
Close VP fight may delay canvassing The Philippine Star 11th May 2016
The tight vice presidential race could delay the canvassing of votes for president and vice president by Congress, House Majority Leader Neptali Gonzales ll said yesterday. Gonzales said members of the Senate-House canvassing committee and lawyers of Sen. Ferdinand Marcos Jr. and Camarines Sur Rep. Leni Robredo could subject the certificates of canvass (COCs) to close scrutiny for defects or signs of irregularities. “We will have no problem with the presidential candidates because of the huge lead of Mayor (Rodrigo) Duterte (of Davao City). But in the VP race, we are sure they will scrutinize the COCs,” he said. He noted that observations and objections from supporters of Marcos and Robredo among lawmakers and lawyers of the two candidates would result in canvassing delays. Since the COCs contain votes both for president and vice president, delay in the tabulation of votes for Marcos and Robredo would mean delay in the tallying of votes for president.
Duterte vows to implement FOI through executive order Inquirer 11th May 2016
Presumptive President-elect Rodrigo Duterte has vowed to implement the freedom of information by issuing an executive order. “Kung ayaw ng Congress, I will start progressively, para walang sat-sat, yak-yak. (If Congress does not want to pass it, I will start progressively so that we don’t talk too much),” the tough-talking Duterte said. The erstwhile Davao City mayor vowed to impose the freedom of information right in the government’s executive branch. He added there is no need for the FOI law to be passed before it is carried out in Malacañang and all the departments and agencies under it. The proposed FOI, which has been promised by President Aquino, early in his administration, has been killed in Congress towards the end of his term.
New faces, top names from previous governments eyed for Duterte Cabinet Inquirer 11th May 2016
How will the next Cabinet look like under a Duterte presidency? Rodrigo “Digong” Duterte, the unorthodox mayor of Davao City who is bound to occupy Malacañang, is now drawing up a list of potential Cabinet members from his core team as well as soliciting suggestions for new names. The goal is to build a “powerhouse of experienced and competent” leaders to run the next administration, according to the Philippine Daily Inquirer sources. Duterte earlier said he might appoint Jesus Dureza as the presidential peace adviser and Carlos “Sonny” Dominguez to head the finance or transportation portfolio. Businessman Tomas Alcantara of the Alsons Group, former trade undersecretary, had likewise been mentioned. Sources close to the Duterte’s core group said the Cabinet could also include Leoncio Evasco Jr., mayor of Maribojoc town in Bohol province who was also Duterte’s campaign manager for this presidential bid. For the position of budget secretary, one potential contender is lawmaker Isidro Ungab, who is finishing his third term as Davao City’s 3rd legislative district. Likewise among those floated to likely join the Duterte administration is former presidential aspirant Gilbert “Gibo” Teodoro who handled the defense portfolio under the term of President Macapagal-Arroyo. Gen. Hermogenes Esperon Jr., retired Chief of Staff, is also among those being considered to join the Duterte Cabinet. A PMA graduate (Class ’74), Esperon, headed the Army’s 602nd Infantry Brigade in 2000 to 2001, leading the all-out war against Moro Islamic Liberation Front rebels in Mindanao. Paul Dominguez, who heads Alcantara & Sons, is also among those whose names are being floated. Duterte’s aide de camp Christopher Go, spokesperson Peter Laviña and running mate Alan Cayetano are also expected to be part of, if not influential, in building the Duterte Cabinet, according to other sources.
Businessmen bare reforms, Cabinet wish list for Duterte Rappler 10th May 2016
It's a fresh start for local businesses, as tough-talking Davao City Mayor Rodrigo Duterte is on course for a landslide presidential win. Duterte led from the beginning of the unofficial tallying of votes after polls closed on Monday, May 9, and has since enjoyed an insurmountable lead. Before the polls, some analysts reported that the Davao City mayor's vague economic plans and threats to kill thousands of criminals are spooking the financial market. The mood, however, changed on Tuesday, May 10, when local businessmen and industry leaders welcomed and expressed support for Duterte. "It's a fresh start for all. The general efficiency and reporting speed of the results make for a credible election process. Hopefully, contenders rally behind the president elect," Hans Sicat, president and CEO of the Philippine Stock Exchange, told Rappler in a mobile phone reply. The PSE chief said the business and financial community hope Duterte will name "credible people" into economic advisory positions.
Senate, House to set final agenda of 16th Congress Business Mirror 10th May 2016
Speaker Feliciano R. Belmonte Jr. on Tuesday said leaders of the House of Representatives and the Senate will meet in the coming days to identify their legislative agenda for the remaining days of the 16th Congress. Belmonte said the meeting between lawmakers will be conducted before the session resumes on May 23, or before they convene as the National Board of Canvassers (NBC) to officially count the votes for president and vice president. Based on the legislative calendar, Congress sessions adjourned on February 3 as part of its preparation for the May national and local election, then resume from May 23 to June 10. According to Belmonte, the two chambers will approve first the pending priority bills before they convene as the NBC. He confirmed that among those on their priority list are “the bills on income-tax reform, higher wages for state workers and the institutionalization of the Pantawid Pamilyang Pilipino Program.”
Leaders of 5 support groups to get key gov’t posts Manila Bulletin 10th May 2016
The Philippines' president-elect, rough-talking city mayor Rodrigo Duterte, announced plans on Tuesday for an overhaul of the country's system of government that would devolve power from "imperial Manila" to long-neglected provinces. Duterte's win in Monday's poll has not been confirmed, but an unofficial count of votes by an election commission-accredited watchdog showed he had a huge lead over his two closest rivals, both of whom conceded defeat. Duterte's spokesman, Peter Lavina, told a news conference that the new president would seek a national consensus for a revision of the constitution which would switch from a unitary form of government to a parliamentary and federal model. Duterte's spokesman said he would also seek peace agreements with rebel groups in the south of the archipelago, where the outgoing government has been using force to quell militancy. As Duterte awaits for his formal installation as the 16th president of the country, the appointment of a Cabinet and officials of key government posts will prove to be tough for the Davao City mayor and the selection and transition team he will form. There will be at least five groups, whose leaders will vie for key posts in the Duterte administration. Among them are the group of vice presidential candidate Sen. Alan Peter Cayetano, the Friends of Duterte (FORD) composed of the victorious bet’s classmates and Lex Talliones fraternity brothers, the Volunteers for Rodrigo Roa Duterte for President Movement (VRRDPM), the PDP-Laban party, and Duterte’s most trusted, the Davao City boys.
Business coming to terms with Duterte Business World Online 10th May 2016
Investors are fast coming to terms with the reality of a Duterte presidency after the firebrand Davao City mayor’s landslide victory forced rivals to concede defeat in Monday’s general elections. Financial markets responded to the unfolding political drama with renewed vigor after being whiplashed by uncertainties in the weeks before the polls. The peso rallied to P46.75 against the dollar, gaining 0.7%, its best in six weeks, according to currency spot market data. The Philippine Stock Exchange index ended a two-day losing streak to post its best day since Jan. 27, rising 2.6% to 7,174.88. Global debt watchers Fitch Ratings and S&P Global Ratings both issued a statement after markets closed, saying the outcome of the general elections should not have an immediate impact on the creditworthiness of the Philippines, which won investment grade during the term of outgoing President Benigno S.C. Aquino III. Getting used to a Duterte presidency has become the sentiment among businessmen who said that, given currently solid macroeconomic footing, priority should be law and order -- the campaign promise that delivered the votes for Mr. Duterte, said Armando O. Bartolome who advises small enterpreneurs.
Rodrigo Duterte’s Many Sides: Brash and Crude or Tough and Shrewd The New York Times 10th May 2016
With more than 92 percent of the votes counted on Tuesday, Rodrigo Duterte, 71, appeared to have an insurmountable lead in the presidential race. Unofficial returns showed him with nearly 39 percent of the vote, far ahead of his closest competitor in a system that requires only a plurality to win. Official results may not be known for days, if not weeks. With an outrageous style that has been likened to Donald J. Trump’s, Mr. Duterte has tapped into widespread discontent over unemployment, crime and corruption. His strong personality — and résumé as a prosecutor and mayor who stamped out crime in a violent area of the country — have endeared him to those who are tired of the more measured tones of President Benigno S. Aquino III. But his success comes with a dark side: There were more than 1,000 extrajudicial killings in Davao City during his 20 years as mayor. If elected, he said recently, he would aggressively pursue those who break the law, vowing to kill criminals himself and grant himself a presidential pardon. He also wants to take a more conciliatory approach toward China over the contested South China Sea, and has questioned the reliability of the Philippines’ alliance with the United States.
Duterte starts preparing for presidency as rivals concede Nikkei Asian Review 10th May 2016
MANILA -- Rodrigo Duterte and his team have started preparing for the Philippine presidency, with the latest vote count showing a clear victory for the tough-talking mayor from the southern city of Davao. With 92.77% of the votes tallied as of 4:30 p.m. Tuesday, Duterte had secured a 15% lead over his closest rivals, former Interior Sec. Mar Roxas of the ruling Liberal Party and independent Sen. Grace Poe. Both have conceded defeat.
Marc Mealy, US-ABC Vice President - Policy, on the Philippine elections and the country's startup ecosystem CCTV America 9th May 2016
CCTV America’s Rachelle Akuffo spoke with Marc Mealy, Vice President of policy at the U.S.-ASEAN Business Council, for analysis of Monday’s election in the Philippines and for a deeper look into the country’s startup industry, .
Who’s who in Duterte’s inner circle Inquirer 9th May 2016
Davao City Mayor Rodrigo Duterte first joined the presidential race with limited resources in November last year. At that time, Duterte said he did not have the financial firepower his rivals had. But the tough-talking local executive said he would not accept money and contributions from people with vested interests. Amid limited machinery, Duterte boosted his campaign by tapping volunteers all over the country. But at the center of the tough-talking mayor’s 90-day campaign is a small group of men calling the shots, deciding on every small detail that has to be settled, and ensuring that Duterte wins the race to Malacañang.
Philippines improves ranking in regional corruption survey The Philippine Star 6th May 2016
Ahead of the elections on Monday, the Philippines secured a fresh recognition of its anti-corruption efforts, improving its score and rank in a regional survey that gave its nod to the outgoing Aquino administration. The country ranked 10th out of 16 countries on the latest Perceptions of Corruption in Asia, the US and Australia by global think tank Political and Economic Risk Consultancy Ltd. (PERC). Last year, it placed 12th. It also improved its score to 7.05 points from 7.43 the prior year. The gauging scale was 0 to 10, with 10 being the most corrupt. "The Philippines was the only country we surveyed where there was an improvement of more than 5 percent. This is an example of how leadership can make a difference," PERC said in the report. "President Benigno Aquino has personally maintained an image for being 'clean' and for trying to reduce the problem," it added.
Customs
Customs modernization act now awaiting PH President’s signature Port Calls Asia 6th May 2016
The Customs Modernization and Tariff Act (CMTA) was transmitted on May 3 to the Office of the Deputy Executive Secretary for Legal Affairs under the Office of the President, Bureau of Customs (BOC) Assessment and Operations Coordinating Group deputy commissioner Atty. Agaton Teodoro Uvero told PortCalls. This means the measure is for signing soon by President Benigno Aquino III. Earlier the Act was signed by both the Senate president and the House speaker, after approval by the bicameral conference committee last January.
PH-EFTA free trade deal to bring down customs duties, trade barriers Port Calls Asia 3rd May 2016
The Philippines and member states of the European Free Trade Association (EFTA)--Iceland, Liechtenstein, Norway, and Switzerland--have signed a far-reaching free trade agreement that will remove all customs duties on industrial products once it enters in force. The Philippines-EFTA FTA has a comprehensive coverage, including trade in goods, sanitary and phytosanitary measures, technical barriers to trade, trade in services, investment, competition, protection of intellectual property, government procurement, trade and sustainable development, institutional provisions, and dispute settlement. Signed on April 28, the pact builds on a joint declaration on cooperation signed by the Philippines and the EFTA states in the Westman Islands, Iceland in June 2014. Negotiations were launched in March 2015 and concluded in February 2016.
Defense & Security
Government arsenal to acquire 1,502 mt of metallic raw material Business Mirror 11th May 2016
The Department of National Defense-Government Arsenal (DND-GA) has allocated P502,084,239 for the acquisition of 1,502 metric tons of metallic raw material. The acquisition will be three years’ worth of supply of metallic raw materials for the DND-GA, which is the mandated manufacturer of all bullets used by government security forces. Funding will be sourced from the General Appropriations Act of Fiscal Year 2016 and Multi-Year Obligation Authority 2015. Delivery for 2016, which is 460 MT and worth P153,561,384, must be within 180 calendar days upon receipt of the Notice to Proceed, while those intended for 2017, which is equivalent to 500 MT and worth P167,138,236, must be delivered not later February 15 of that year.
Duterte grounds jet ski vs China Inquirer 11th May 2016
Presumptive President-elect Rodrigo Duterte said Monday he would settle the rows in the South China Sea with multilateral talks that would include allies United States, Japan and Australia, and the claimant nations against China. Duterte, erstwhile mayor of this city, said China should respect the 200-nautical mile exclusive economic zone (EEZ) around coastal states and team up with the Philippines to jointly exploit offshore oil and gas deposits. “I would say to China: ‘Do not claim anything here and I will also not insist that it is ours.’ But then I will just keep a blind eye,” he told reporters, who waited with him for the results of an unofficial count that showed him winning with a hefty 40 percent of the vote. “If you want joint ventures, fine, we can get the gas and the oil,” he said. “I believe in sharing.” Tensions have risen sharply between China and the Philippines as an international tribunal in The Hague is preparing to deliver a ruling soon in a case lodged by Manila in 2013 that could undermine Beijing’s claim to 90 percent of the South China Sea. China has rejected the court’s authority. Duterte, 71, had puzzled diplomats with his contradictory positions on dealing with China’s assertiveness and blockade of waters and islands long held by the Philippines within its EEZ.
Philippine Vote Winner Keeps Changing Mind on U.S. and China Bloomberg 10th May 2016
Criminals and the corrupt may know where they stand with incoming Philippine President Rodrigo Duterte. Less so the U.S. and China. While the brash mayor has made it clear that domestic policy will center around showing no mercy to law breakers, he’s offered contradictory visions for dealing with both the nation’s closest ally and its biggest trading partner. In a campaign filled with off-the-cuff and off-color remarks, Duterte shifted between fanning a territorial dispute in the South China Sea and allaying concerns it will become the next global flash point. That unpredictability was on display Monday: Speaking to reporters in Davao City, Duterte alternated between saying he was open to co-operating with China on oil and gas exploration in the disputed waters and questioning why the U.S. didn’t send an aircraft carrier to challenge China to show sincerity about standing with the Philippines. Duterte may yet temper -- or at least clarify -- his rhetoric now he’s off the campaign trail. But his comments so far reflect the dilemma for the Philippines, a country dwarfed economically and militarily by both the U.S. and China and caught in the middle of the tussle between the two big powers for influence in the region.
Indonesia, Malaysia, Philippines agree to boost sea security The Philippine Star 5th May 2016
Indonesia, Malaysia and Philippines agreed Thursday to run coordinated patrols to boost maritime security following the kidnappings at sea of Indonesians by suspected Abu Sayyaf militants. Foreign ministers and military chiefs of the three countries held talks in Indonesia's ancient royal capital city of Yogyakarta, hashing out the details of joint patrols to protect shipping in the waters between their border areas. Indonesian Foreign Minister Retno Marsudi said the threat from robbery, kidnapping and other transnational crime, if not addressed appropriately, can undermine the confidence in trade and commerce, which in turn can adversely affect the economic activities and welfare of peoples in the surrounding areas. She said the area between Zulu islands in southern Philippines and Indonesia's Sulawesi island is a strategic economic waterway where over 55 million metric tons of crude and over 18 million people pass through. Abu Sayyaf militants on Sunday freed 10 of 14 Indonesian crewmen who were seized at sea in March in the first of three attacks on tugboats that have sparked a regional maritime security alarm. In April, the militants beheaded Canadian John Ridsdel after failing to get 300 million pesos ($6.3 million) as ransom.
Army deploys 1,000 troops in Mindanao to boost security on May 9 The Philippine Star 5th May 2016
The Army’s 6th Infantry Division (6th ID) on Thursday activated a 1,000-member military security task force to help the poll body secure politically troubled areas in central Mindanao on May 9. The contingent, named Task Force CHOP (clean, honest, orderly and peaceful elections), is led by Col. Romeo Brawner, 6th ID’s chief-of-staff. Brawner and his men are backed by a dozen combat vehicles, tanks and motorized watercraft for security operations in marshlands and polling precincts along rivers criss-crossing the adjoining North Cotabato and Maguindanao provinces. The group, which has a team of long-range snipers, will operate under the supervision of the Commission on Elections (Comelec), according to Major Gen. Edmundo Pangilinan, 6th ID’s commander. “These men will engage without any hesitation saboteurs or armed groups out to derail the conduct of the May 9 elections in any of the municipalities under the jurisdiction of the 6th ID,” Pangilinan said.
Economics
Duterte asked: What’s your business plan? Inquirer 11th May 2016
Presumptive President Rodrigo Duterte, the tough-talking mayor of Davao City, captured the imagination and votes of millions of Filipinos but he remains relatively “unknown” in business circles in Metro Manila, causing a degree of anxiety over how the economy will fare under his term. Already, there are calls among the business elite for details of his business policy, possible form of government and his Cabinet lineup, starting with who will lead the Department of Finance and the National Economic and Development Authority, an analyst said. “Duterte is the first President who does not hail from Luzon in about 50 years. “Duterte is the first President who does not hail from Luzon in about 50 years. That’s almost two generations. So, he’s really an unknown,” said Jose Mari Lacson, BPI Securities deputy head of research. “Investors are going to be very impatient. He may not like it but answers will need to be provided quicker,” Lacson said. “This is the first thing the President-elect will have to do—to calm and assure investors of that uncertainty.” Lacson said investors’ concerns ranged from Duterte’s stance on shifting to a federal system to how investments would be allocated. Issues that matter to businesses, he noted, included infrastructure, education, small-and medium-sized enterprises, tourism and agriculture.
February fiscal data bare pre-polls spending spurt Business World Online 10th May 2016
The fiscal deficit more than tripled annually to P34.63 billion in February, as public spending accelerated ahead of the March 25-May 8 election ban on public works while revenue generation slowed. The national government’s budget shortfall ballooned from the P9.7 billion booked in 2015’s comparable month, according to data released by the Treasury bureau yesterday. February’s deficit -- a tenfold increase from the P3.47 billion booked in January -- brings the first two months’ gap to P38.10 billion, more than double the P16.15 billion seen a year earlier. February state expenditures increased 22% to P173.58 billion from the P142.45 billion recorded a year earlier, though still 7% less than the P185.70 billion spent in January. Interest payments accounted for P21.28 billion or 12% of expenditures, smaller than the 13% ratio recorded a year earlier but 13% more in nominal terms. But overall GDP data, scheduled to be reported on May 19, should be “strong” because of accelerated public expenditure ahead of the election ban and higher spending related to election campaigning, among others.
Draft IRR of Philippine Competition Act out soon Sun.Star Manila 10th May 2016
THE Philippine Competition Commission (PCC) is set to release this week the draft implementing rules and regulations (IRR) of the Philippine Competition Act, which is meant to promote fair market competition in various industries and penalize anti-competitive practices. The PCC said it is inviting business groups and other stakeholders to attend consultations set in Manila, Cebu, and Davao on May 16-24. The draft IRR will be posted on PCC's website, www. phcc.gov.ph, and the links will be shared through the agency’s Facebook and Twitter accounts. As planned, the final and approved version of the IRR, which will be released in June, will allow the PCC to fully implement the Philippine Competition Act.
Reforms lure foreign investments into banking, manufacturing The Philippine Star 9th May 2016
Economic reforms undertaken by the government on banking and manufacturing sectors are now yielding positive results by attracting more foreign direct investments (FDI) into the sectors, the chief economist of the Department of Finance (DOF) said. Specifically, Republic Act 10641 that allowed more foreign banks to operate in the country and an ongoing manufacturing blueprint both helped double FDI to $587 million in January. “Liberalized foreign bank entry and manufacturing resurgence programs were the spark that generated significant response from investors in 2015 and the first month of 2016,” Beltran said. RA 10641 allowed the operation of more than 10 foreign banks in the Philippines under the previous law. So far, the central bank said six other lenders were approved to operate in the country. The ongoing 2014-2025 Manufacturing Resurgence Program, meanwhile, increased the sector’s FDI by more than 4,600 percent in January.
Philippine Markets Rally as Duterte Win Ends Pre-Vote Turbulence Bloomberg 9th May 2016
Weeks of uncertainty that pressed on Philippine financial markets gave way to rallies in stocks and the peso as investors jumped back in after the election of Rodrigo Duterte as president. The Philippine Stock Exchange Index surged 2.6 percent, the most since Jan. 27, while the peso strengthened versus all of its 10 Asian peers as Duterte sought to ease investor concerns after claiming victory. The tough-talking mayor of Davao city said on Monday it was time to start a process of “healing,” and named potential cabinet members. With 90 percent of polling stations reporting, Duterte had secured 39 percent of ballots in an election held amid sporadic violence and delays. He now faces the challenge of sustaining investor confidence that helped fuel economic growth that averaged more than 6 percent under outgoing President Benigno Aquino, while managing the expectations of an electorate swayed by populist pledges such as taming crime within six months.
Philexport urges approval of IRR for PHL Competition Act Business Mirror 9th May 2016
Exporters are pushing for the fast-track drafting and approval of the implementing rules and regulations (IRR) of the law designed to foster improved market competition crucial to attracting more investments into the country important within the Asean Economic Community (AEC). Philippine Exporters Confederation Inc. (Philexport) President Sergio Ortiz-Luis Jr. said Republic Act 10667, or the Philippine Competition Act, will help ensure that existing businesses operate in a level playing field. The law was signed on July 21, 2015. “This is critically important within the Asean Economic Community to protect both local and foreign businesses with the legal environment against anticompetitive trade practices,” he said in a recent conference on the comprehensive competition law.
Hedge Funds Bullish on the Philippines as Duterte Wins Election Bloomberg 9th May 2016
For hedge funds investing in Philippines shares, Rodrigo Duterte’s landslide victory in the country’s presidential election may represent a buying opportunity. While the controversial mayor of Davao City has won votes with his tough talk on fighting crime, he has yet to prove his economic credentials and win investors sidelined by a lack of clarity about his plans for managing the economy. The peso has weakened about 2 percent against the dollar in the past month, while the Philippine Stock Exchange Index dropped for a third consecutive week. No reason to panic, say hedge funds such as Civetta Capital and F&H Fund Management. They point to strong economic fundamentals in the Southeast Asian nation the World Bank describes as Asia’s rising tiger. The government forecasts the economy will expand more than 6 percent this year.
Industry lists key interventions for new government to achieve inclusive growth Business Mirror 9th May 2016
Business leaders are entreating the incoming administration to actively take the reins in promoting inclusive growth, noting that “a passive, trickle-down approach will not work in a country where you have high rates of poverty and joblessness.” Business leaders are entreating the incoming administration to actively take the reins in promoting inclusive growth, noting that “a passive, trickle-down approach will not work in a country where you have high rates of poverty and joblessness.” Saying the “lack of good jobs leads to higher poverty,” it pressed the new government to correct the situation by taking a proactive role in resolving longstanding challenges to Philippine productivity and competitiveness, including inadequate infrastructure and a neglected micro, small and medium enterprise (MSME) sector. PCCI said the government must work on developing an efficient, productivity-enhancing infrastructure system to reduce production and logistics costs, enhance workers’ output, and stimulate a second round of private-sector investments in manufacturing, agribusiness, SMEs, and tourism, among others. The three major stumbling blocks to MSME development, PCCI said, center on starting and maintaining a business, paying taxes and accessing finance. It noted reports from small enterprises of how they allegedly need to “pay bribes or give gifts to obtain permits.”
Duterte open to lifting cap on foreign ownership of firms Rappler 9th May 2016
A Duterte presidency is open to lifting the Charter's restriction on foreign ownership of Philippine corporations. This was among the plans revealed by presidential race front-runner Rodrigo Duterte, after being asked what he intends to do in the first 100 days of him in office. "Maybe we can tinker with the Constitution now about changing or amending the 60-40 to make them (foreign investors) comfortable," he told Rappler in a live interview after the closing of polling precincts Monday, May 9. Full ownership of corporations in the Philippines is reserved for Filipino citizens. The 1987 Constitution limits foreign ownership at 40%. Foreign investors intending to circumvent the law currently use Filipino citizens as dummies in foreign-funded corporations operating in the Philippines. While Duterte intends to liberalize the entry of foreign investments in the country, he said he does not want to touch the constitutional limit on foreign land ownership. "Hindi ko talaga tanggapin 'yang selling of the lands of our country. Hindi ko kaya 'yan. I will object (I cannot accept the selling of the lands of our country. I caanot take that. I will object)," he said.
Who Will Be The Next Economic Manager? Business World 9th May 2016
Get to know the people who the next President of the Republic of the Philippines will likely appoint as economic manager.
Central bank likely to keep policy steady anew -- poll Business World Online 8th May 2016
The Bangko Sentral ng Pilipinas (BSP) is likely to keep its monetary policy stance unchanged during its review scheduled this Thursday given subdued inflation, according to analysts polled by BusinessWorld, although some expect technical adjustments ahead of the interest rate corridor system that may be announced within the week. A poll among 14 economists late last week said they expect no change in the BSP’s monetary policy stance during its May 12 review, which will be the third for the year. Neither the national elections set to be held today nor any market reaction will affect monetary policy, the economists added, with the focus still squarely on inflation.
Presidential bets told tax hike inevitable Business World Online 8th May 2016
Presidential candidates have promised investors a lower corporate tax and the masses who will vote, more purchasing power. The elephant in the room, of course, is what will make up for the resulting revenue losses -- particularly in terms of taxing other sectors more which exactly some of their economic advisers are recommending, according to BusinessWorld interviews. Bringing down the corporate tax rate from the current 30% of gross income -- both for domestic and foreign companies -- will woo more investments and create a business climate needed to partly sustain an economy that has been expanding at a pace faster than many others in Asia and the Pacific. The plan is to cut the tax to 25%, the average among the country’s Association of Southeast Asian Nations (ASEAN) peers, said University of the Philippines professor emeritus of economics Ernesto del Mar Pernia, whose advice presidential race front-runner Rodrigo R. Duterte has sought. Workers will be taxed less too, he added in a May 4 interview. However, the continuity of previous reforms presidential bets openly declared -- including the public-private partnership (PPP) project and the conditional cash transfer (CCT) program -- will need money. Mr. Pernia said that while Mr. Duterte’s hard stance against corruption and smuggling would stem leakages and consequently boost revenue collection, higher taxes elsewhere could be inevitable.
Underperforming sectors take up bulk of tax perks — BOI study The Philippine Star 28th Apr 2016
The government granted most income tax holidays (ITH) to underperforming sectors over the past few years, highlighting the need to restructure incentives that have taken more than P80 billion in state revenues. In a study by the Board of Investments (BOI), a copy of which was obtained by The STAR, mass housing and agricultural products topped the number of projects which have sought perks from the investment promotion agency from 1995 to 2012.
Energy
PSALM lists ‘hurdles’ in privatization of power assets Business Mirror 10th May 2016
THE Power Sector Assets and Liabilities Management Corp. (PSALM) has yet to line up the inventory of power assets up for sale this year, pending further discussions with concerned agencies. Under Republic Act 9136, or the Electric Power Industry Reform Act of 2001, PSALM is mandated to manage the privatization and maintenance of National Power Corp.’s (Napocor) power-generation assets, liabilities and contracted capacities. Among the power assets that are yet to be privatized are the 850-megawatt (MW) Sucat Thermal Power Plant; the 200-MW Mindanao Coal-Fired Thermal Power; the 982-MW Agus-Pulangi hydropower complex; the 40-MW “security capacity” of the Unified Leyte Geothermal Power Plant (ULGPP) and the bulk capacity of the ULGPP itself.
Mining investments down 22.5% from 2014 Business World Online 10th May 2016
Investments in major mining projects last year totaled $924.94 million, down by 22.5% from the total investments of $1.193 billion in 2014, the Mines and Geosciences Bureau (MGB) said in a statement on Tuesday. Investments in new mineral exploration projects posted $78.97 million, also down by 44.23% from last year’s investment of $141.6 million, the MGB also noted. The bureau attributed this decrease “mainly to the continuing expansion of four operating mining projects and one new mining project in construction stage.” These projects are as follows: Philex Mining Corporation’s Sto. Tomas Copper Project in Tuba, Benguet ($44.98 million); Taganito HPAL Nickel Corporation’s Surigao Sumitomo HPAL Project in Claver, Surigao del Norte ($180 million); CTP Construction and Mining Corporation’s SIRC Nickel Project, also in Claver ($47.30 million); and FCF Minerals Corporation’s Runruno Gold Project in Quezon, Nueva Vizcaya ($41.40 million).
Monsada bares energy wish list for next gov’t Business World Online 10th May 2016
Energy Secretary Zenaida Y. Monsada has enumerated a list of ongoing and unfinished initiatives that she hopes the next administration will continue. “The mandate of DoE (Department of Energy) is to ensure that there is adequate, continuous and reliable power,” she said when asked about her wish list during a briefing on the country’s power situation during the election period. She said her department’s efforts to fulfill its mandate were all that she hopes the new leadership will carry on. These include the rules to fully flesh out Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 as well as private sector participation and regulations to usher in orderly competition in the energy market. These include rules governing retail competition and open access (RCOA) in the Philippine electric power industry, which give qualified “contestable” consumers the option to choose their preferred retail electricity suppliers; rules on the implementation of competitive selection process (CSP), which requires power contracts to be bid out to suppliers; and a Wholesale Electricity Spot Market (WESM) for Mindanao. Ms. Monsada included the ”green energy option” or the mechanism to empower end users to choose renewable energy in meeting their energy requirements; and a power development plan for each region. She also wanted a clear classification of power plants -- whether baseload, mid-merit ,or peaking -- to ensure that renewable energy sources do not compete with fossil fuel-fired plants to guide the market’s direction toward the department’s fuel-mix aspiration of sourcing energy equally from coal, natural gas, and renewable energy. “Nuclear is still an option,” the energy secretary said -- adding that toward the latter part of the year, the Philippines will host a forum, as suggested by the International Atomic Energy Agency, that could lead to the country crafting its own nuclear energy policy.
DOE releases timelines for RCOA’s full implementation Business Mirror 10th May 2016
The Department of Energy (DOE) has issued a circular that spells out the timelines for compliance for the full implementation of the Retail Competition and Open Access (RCOA) in the country’s power sector. Under the RCOA regime, bulk electricity consumers with an average demand of 1 megawatt (MW) will be converted from being a “captive” customer of distribution utilities (DUs), such as the Manila Electric Co. (Meralco), to “contestable” customers. These contestable customers would have the liberty to choose from among the registered members of the Wholesale Electricity Spot Market (WESM) to choose a power supplier other than Meralco. Department Circular (DC) 2016-04-0004, signed on April 26 by Energy Secretary Zenaida Y. Monsada, states that compliance to full contestability by contestable customers with an average demand of 1 MW and above shall be no later than December 26 this year. The DC was posted in the DOE web site on May 10.
Govt sets review of Meralco’s power portfolio Business Mirror 7th May 2016
The Energy Regulatory Commission (ERC) said on Friday it would closely review the Manila Electric Co.’s (Meralco) entire power portfolio, following the submission of its power-supply agreements (PSAs) for approval just a day before the controverisal Competitive Selection Process (CSP) took effect. “The ERC, in evaluating Meralco’s PSA application, can always examine its entire portfolio, and not just the contract being evaluated, to ensure that Meralco does not violate the prohibition on DUs [distribution utilities] sourcing more than 50 percent of its total demand from an associated firm engaged in generation. This is in accordance with Section 45 [b] of the Electric Power Industry Reform Act,” ERC Chairman Jose Vicente Salazar said in an interview. Seven PSAs between Meralco and power producers, including two under its power-generation subsidiary, were submitted to the ERC on April 29. Under the PSAs, Meralco intends to source 3,551 megawatts (MW) of its power requirements from seven power producers.
Government expects new law to generate one million jobs in ‘green’ firms Business Mirror 4th May 2016
Following the signing of the Philippine “Green Jobs” bill into law, the chairman of the House Committee on Labor and Employment on Wednesday said the government is expecting 1 million jobs this year. National Unity Party Rep. Karlo Alexei Nograles of Davao City, the panel’s chairman, said the passage of Republic Act (RA) 10771, or the Philippine Green Jobs Act of 2016, is expected to attract several foreign direct investments. “Specifically, but not exclusively, this includes jobs that help protect ecosystems and biodiversity, reduce energy, materials and water consumption through high-efficiency strategies, decarbonizes the economy and minimizes or altogether avoids generation of all forms of waste and pollution,” Nograles added. Nograles, one of the main authors of the measure, said the law seeks to create job opportunities in the field of green technology to promote the protection of the environment. He added that it also encourages the creation of green jobs that produce goods and services that benefit and preserve the environment or conserve the natural resources.
Government urged to firm up energy mix policy Philippine News Now 3rd May 2016
The government should firm up its energy mix policy to provide a clear direction for power developers, businessmen said yesterday. Phinma Corp. president and CEO Ramon del Rosario said yesterday in a forum hosted by the Economic Journalists’ Association of the Philippines and ING Bank, the government must make up its mind on the energy mix that it wants to allow power developers to plan ahead. “It’s important for government to adopt an energy strategy that will include the energy mix that they would like to promote,” he said. Del Rosario said the energy mix policy should be a mutual partnership between government and the private sector. “I think, probably, that’s the best way to go. This is something that can be done with the private sector and government — talking to each other, consulting with each other on what is realistic and what really can be implemented,” he added. Under the Department of Energy’s current fuel mix policy, the country should source 30 percent of its energy requirements from coal, 30 percent from renewable energy and another 30 percent from natural gas. The remaining 10 percent will come from oil-based power plants. Currently, the government is pushing for investments in renewable energy (RE) to meet commitments to reduce carbon emissions by 70 percent. However, the Philippines is not ready for an all-RE power source because it is still expensive than coal, DMCI Holdings Inc. chairman and president Isidro Consunji said in the same event. “The price of power is expensive, but coal is the cheapest. Until we can find a better solution, we just have to rely on coal. But all-coal today is compliant with the Clean Air Act, which is very strict,” he said. In the next five years, 70 percent of new power plants will come from coal, DOE data showed.
Financial Services
Philippines seeks to tighten money laundering laws after heist Reuters 10th May 2016
The Philippines started the process to strengthen its anti-money laundering and bank secrecy laws on Tuesday, aiming to plug loopholes that allowed $81 million stolen in one of the world's biggest cyber heists to pass through Manila banks and casinos. The Department of Finance said it was working with the country's anti-money laundering council and central bank to amend the list of entities covered by its anti-money laundering law to include casinos. A draft bill was submitted to Congress, it said. Unidentified hackers infiltrated the computers at the Bangladesh central bank in early February and tried to transfer $951 million from its settlement account at the Federal Reserve Bank of New York.
Tetangco calls for regional unity as ASEAN markets integrate Manila Bulletin 10th May 2016
Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. said ASEAN neighbors should look out for each other even if the focus is on keeping “its own house in order.” Tetangco, who was in Germany for the Joint Meeting of the ASEAN+3 (Japan, China and Korea) and Eurosystem Central Bank Governors to discuss central banking and financial stability, said it is important to practice “enlightened self-interest” which were first brought to the fore by the Bank for International Settlements.
Last-ditch bid to plug hole in fight against dirty funds Business World Online 10th May 2016
The finance department has submitted to Congress proposed amendments to the country’s Anti-Money Laundering Act (AMLA) and bank deposit secrecy law, barely two months before the next government takes over. “This is in light of several financial controversies that have exposed the weaknesses of our tax and financial system’s legal framework,” read an April 20 transmittal letter signed by Finance Secretary Cesar V. Purisima and addressed to leaders of the Senate and the House of Representatives. The Finance department cited the February laundering of $81 million stolen from the Bangladesh Bank’s account with the Federal Reserve Bank of New York that was wired to local bank accounts and then used to play in casinos in the Philippines. The proposal also seeks to address foreign banks’ “de-risking” that has led to the closure of accounts of Philippine money transfer operators and subsequently hike in cost for overseas Filipino workers sending money home. The Finance department prepared the proposed amendments to AMLA, or Republic Act (RA) No. 9160, with the Anti-Money Laundering Council and the Bangko Sentral ng Pilipinas (BSP). Among others, the proposal seeks to subject casinos, real estate brokers, art dealers and motor vehicle dealers to the provisions of the current anti-money laundering law. Moreover, amendments to the Bank Secrecy Law (RA 1405) and the Foreign Currency Deposit Act of the Philippines (RA 6426) will allow, for tax administration, examination of deposit accounts without onwers’ written permission.
BPI to adopt financial technologies amid cyber threats BusinessMirror 5th May 2016
The oldest bank in the Philippines is ready to embrace technological advancements that financial technologies (fintech) have to offer, amid the cyber-threat issues that plagued the country since the start of the year. Ramon L. Jocson, executive vice president of the Bank of the Philippine Islands (BPI), told the BusinessMirror they plan to incorporate fintech in their banking ecosystem, alongside the digitization of selected parts of their business. “Fintech in the financial industry is about the concept that people need convenient banking services but they don’t necessarily need the banks. What they need are efficient banking services,” he said. This is a bold step for the bank considering that the Philippines has been the focus of the global cybercrime spotlight with the money-laundering case involving the Bank of Bangladesh and the hacking of the Commission on Elections web site. Jocson said some parts of the business will eventually adopt fintech as they digitize, because of the efficiency that technology brings, particularly in reaching out to clients. He believes that financial-technology companies should focus on three things: personalizing the experience, going into analytics to find certain segments that no other company has catered to before and, finally, doubling down on client fulfillment without the extra cost.
IC urged to review tariff to lower insurance rates Business Mirror 3rd May 2016
The country’s nonlife insurers are urging the Insurance Commission (IC) to review tariff rates to check their relevance in the era of free trade and globalization. In a speech during the 13th General Insurance Summit at Dusit Thani Hotel, Michael Rellosa, vice chairman of the Philippine Insurers and Reinsurers Association (Pira), said it may be high time for the IC to look into the tariff rates and why nonlife insurers are having difficulty following them. Rellosa revealed that in 2015, the nonlife insurance industry paid P21 million in fines for tariff breaches. Rellosa said he is not questioning the wisdom of the IC in penalizing insurers, but he urged the regulator to consider the tariff in relation to the Asean economic integration is slowly unfolding. Rellosa, who is the present chairman of the Asean Insurance Council, said the economic integration is the reason the government made insurance companies raise more capital than they could actually use at the moment.
Philippines: New rules out for low-cost pre-need and health plans Asia Insurance Review 2nd May 2016
The Insurance Commission has released the rules governing the sale of cheaper health insurance and pre-need products to better protect consumers. The rules, advised through separate circulars, cover micro pre-need products as well as health microinsurance or micro-health products.
BSP tackles impact of de-risking strategy Philstar 30th Apr 2016
MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) is putting in place measures to cushion the adverse impact of the de-risking activities being undertaken by foreign banks and the money laundering scandal that hit the local financial system on remittances. BSP Governor Amando Tetangco Jr. said in a his keynote address during the Financial Inclusion Summit 2016 organized by the Bank of the Philippine Islands (BPI) Foundation there are concerns needed to be addressed by monetary authorities. “Foremost is the adverse impact on remittance costs and flows of the closure of accounts of several money transfer operators by correspondent banks who are limiting their exposure to possible channels for money laundering and other financial crimes,” Tetangco said. This, he added, is a de-risking strategy largely driven by business decisions of foreign banks, weighing the risks and benefits of dealing with remittance companies. Furthermore, the BSP chief warned the de-risking could also result in movement by overseas Filipinos toward informal remittance channels and subsequent financial exclusion.
Catastrophe insurance pool proposal in limbo Business Mirror 30th Apr 2016
The fast economic growth in Metro Manila, as may be seen particularly in the large volume of vehicle sales to middle- class families, also has a downside—the vulnerability of the metropolis to a near wipeout caused by natural or man-made disasters. This is the reason the Insurance Commission (IC) and the Philippine Insurers and Reinsurers Association (Pira) are pushing for an executive order (EO), which will make it mandatory for all households and micro-, small- and medium-sized enterprises (MSMEs) to have catastrophe insurance for disasters, such as earthquakes and floods.
Food & Agriculture
Government to identify suitable areas for coffee farming Business Mirror 10th May 2016
The Bureau of Soils and Water Management (BSWM) said it is currently conducting a study to identify strategic areas in the country that are suitable for coffee and cacao production. The study titled “Land Resources Evaluation and Assessment of Strategic Production Areas for Coffee and Cacao Project,” will determine the suitability of areas in terms of soil quality and climate. “There is a need to evaluate the environment in which farmers are planting crops, particularly coffee, to take advantage of the increasing demand for it,” BSWM Assistant Director Sonia Salguerro said in a presentation. Salguerro said the project started in February and will be completed in 18 months. Project sites are in 11 provinces in Luzon, four provinces in the Visayas and 14 areas in Mindanao. The project is being implemented by the BSWM, together with the DA’s High Value Crops Development Program, Philippine Council on Agriculture and Fisheries Committee on Commercial Crops, DA regional field officers and local government units.
PHL to consult Thailand on tobacco import dispute Business World Online 10th May 2016
The Philippines has requested a consultation with Thailand on the latter’s measures in relation to a 2011 case favoring Philippine tobacco products, the World Trade Organization (WTO) said. Lawyer Jemy I. Gatdula of the University of Asia and the Pacific School of Law and Governance, who helped in the initiation of the dispute, said the Philippines has a “strong” position on this matter. “This is a necessary process for the Philippines to be able to enforce its rights. Unfortunately, despite all the developments in international law, there is still need for state sovereignty to be given primacy,” Mr. Gatdula said in a phone interview. Should it be decided that Thailand didn’t comply with the ruling, the Philippines would be allowed to engage in a withdrawal of concessions. “In other words, it would be allowed to legally retaliate,” Mr. Gatdula said, explaining further the country could “discriminate” against Thai exports.
Bt cotton rollout may get green light this year Business Mirror 10th May 2016
The Philippine Fiber Industry Development Authority (PhilFida) on Tuesday expressed confidence that the commercialization of Bacillus thuringiensis (Bt) will be given the go signal in the fourth quarter of 2016. PhilFida Executive Director Clarito M. Barron said Bt cotton would have to hurdle an environmental risk assessment—an additional requirement in the new joint department circular (JDC) for genetically modified (GM) crops, which replaced Administrative Order (AO) 8. “Under the new JDC, there are already revised guidelines for the impact assessment of every GM crop on the environment. That’s what we are working out,” Barron said, adding that multilocation field trials of Bt cotton have concluded. Bt cotton will address the infestation of bollworm, an insect that causes as much as 60-percent yield loss in cotton plantations. The production cost incurred by farmers would be reduced, as they would no longer need to buy pesticides to control bollworm, Barron said.
Rice aid to drought victims 58% released, NFA says Business World Online 6th May 2016
The National Food Authority said it has released 58% of the total bags of rice approved for release for drought victims. According to a statement form the agency, the NFA has distributed 167,190 bags out of the 287,558 authorized to the Department of Social Welfare and Development and various local government units in areas experiencing severe drought brought by the El Nino phenomenon. These include regions 3,9,10,11,12,14, and 15. NFA officer-in-charge Tomas R. Escarez said the NFA is ready to release the remaining balance of 120,367 50-kilo bags.
DA asked to push for biotech law Business Mirror 5th May 2016
Corn farmers belonging to the Philippine Maize Federation Inc. (PhilMaize) urged the Department of Agriculture (DA) to push for a law that would protect the right of Filipino farmers to plant and distribute genetically modified (GM) crops. PhilMaize Chairman Emeritus Rod Bioco said a measure that would govern the agricultural biotechnology sector should be passed by Congress. Bioco noted that the Supreme Court ruling in December 2015 almost paralyzed the agricultural supply chain comprising corn farming, feed milling, and the livestock and poultry sectors. “The lack of an agricultural biotechnology law opens up the food-supply chain to these legal distortions, which we would want to remedy via a piece of legislation in Congress,” he said in a statement.
Brace for higher rice prices–World Bank Business Mirror 28th Apr 2016
Filipinos should brace for higher rice prices in the next five years, as more expensive oil could cause the price of production inputs such as fertilizer to go up, according to the World Bank. In its latest report, titled Commodities Market Outlook, the World Bank estimated that rice prices in the international market could rise to $390 per metric ton (MT) by 2020, from $375 per MT this year. “Food-commodity prices are affected by energy prices through a number of channels, including fuel costs and chemicals, and indirectly through fertilizers [some fertilizers are made directly from natural gas],” the World Bank report read. From an average price of $41 per barrel this year, crude oil is expected to become more expensive at $60 per barrel by 2020. The World Bank said food and oil prices are linked, so much so that if oil prices drop 50 percent, there could be a 10-percent “permanent” decline in food prices over the longer term.
Health & Life Sciences
Marcos, Escudero, Honasan, 2 Senate bets 'anti-health' The Rappler 5th May 2016
MANILA, Philippines – Health advocacy groups on Thursday, May 5, declared as "anti-health" vice presidential bets Ferdinand "Bongbong" Marcos Jr, Francis "Chiz" Escudero, and Gregorio "Gringo" Honasan II, as well as reelectionist Senators Ralph Recto and Vicente "Tito" Sotto III. The Framework Convention on Tobacco Control Alliance Philippines (FCAP), Action for Economic Reforms, and Youth for Sin Tax Movement slammed the 5 candidates "because they rejected the sin tax law in 2012." In a statement on Thursday – 4 days before the May 9 polls – the groups that lobbied for the passage of the sin tax law said these candidates "continuously [dismiss] the benefits of the law both in terms of reducing smoking and increasing the funds for Universal Health Care." [O]n Thursday, Madeiline Aloria from the Youth for Sin Tax Movement said Escudero "appears to have a misplaced concern for the poor." "Instead of protecting the vulnerable sector from getting sick, he’d rather keep cigarettes and alcohol accessible to them. During the campaign, he vowed to expand the coverage of PhilHealth for the poor, but where will he get the money to finance this if he does not agree with sin tax and even promised to lower corporate and income taxes?" Beyond the presidential elections, 2016 is also a crucial year for health advocates. The sin tax law mandates a congressional oversight committee to review the impact of the tax rates on the 3rd quarter of 2016. Diosana called on the public to be vigilant ahead of the review.
Breakthrough drug that cured Jimmy Carter of cancer now in the Philippines The Jakarta Post 3rd May 2016
The Philippines - News about [the] drug called Pembrolizumab that cured Jimmy Carter spread like wildfire. And now, that drug is available in the Philippines. In February this year, the Food and Drug Administration of the Philippines approved Pembrolizumab for the treatment of advanced or metastatic lung cancer and melanoma, a type of skin cancer. Dr. Ena Lyn Ang, medical adviser, MSD Oncology, notes that in the Philippines, lung cancer is still the top cause of mortality among men and it’s top two if you combine men and women. She says that majority of the patients are diagnosed at a late stage — or Stage IIIB, which is inoperable, and Stage IV or metastatic, where the tumor has spread to distant parts of the body. “Addressing the rising incidence of cancer is a tough road to embark on. MSD has been dedicating its resources to develop innovative oncology medicines. Pembrolizumab propelled our research efforts to understand the role of the immune system and the PD-L1 pathway in cancer treatment,” said Dr. Beaver Tamesis, president and managing director, MSD Philippines, the pharmaceutical company behind Pembrolizumab.
Majority of the Philippines’ workforce have sedentary lifestyles at risk of obesity Cebu Daily News 1st May 2016
The Philippines - Herbalife a global nutrition company, has released the findings of the new Nutrition At Work Survey, which revealed that the majority of Philippines’ workforce leads largely sedentary lifestyles, putting them at risk of obesity. The Survey1, which was designed to understand the lifestyle habits and attitudes of Asia Pacific’s modern workforce, was conducted in March with 5,500 full-time workers in 11 Asia-Pacific markets, including 500 workers from the Philippines. “With a majority of Philippines’ workforce leading largely sedentary lifestyles, our mission as a global nutrition company is to help people in the Philippines take practical steps towards leading healthy, active lives.By inculcating positive nutrition and active lifestyle habits to people in the Philippines, we hope that this will, over time, help reduce obesity risks and lead to positive improvements to the well-being of our people,” said Mr. Rosalio Valenzuela, General Manager of Herbalife Philippines. Aimed at addressing health issues associated with sedentary lifestyles, and deepening practical understanding on the benefits of healthy, active lifestyles, Herbalife launched its fifth Asia Pacific Wellness Tour 2016, held in the months of April and May.
DOH launches anti-polio vaccine in Oriental Mindoro Manila Bulletin 30th Apr 2016
The Department of Health-MIMAROPA (Oriental Mindoro, Occidental Mindoro, Marinduque, Romblon, Palawan) recently launched the “National Oral Polio Vaccine (OPV) Switch Day” at the Divine World College in Calapan City with the objective of providing better protection for children against the spread of polio virus and lessen the risk for polio outbreaks.
Capitol enrolls 23.7K people to PhilHealth Cebu Daily News 28th Apr 2016
Living up to its commitment to provide free medical care to indigent patients, the Cebu Provincial government has enrolled at least 23,776 individuals to PhilHealth program in 2015. Of the total number of recipients, 3,844 are indigents who availed of the Point of Care (POC) program. The rest are low-income beneficiaries.
ICT
Survey finds increasing use of debit cards among Filipinos Business Mirror 11th May 2016
More and more Filipinos prefer to use their debit cards than they did five years ago, and have greater interest to use electronic payments on eCommerce web sites and apps, according to the Visa Consumer Payment Attitudes Study 2015. The annual study delves into the current attitudes consumers have on electronic payments and identifies trends in payments behavior among consumers in six Southeast Asian markets, including the Philippines. Previously Visa Philippines has published findings and insights on consumer attitudes toward contactless payments, preference for eCommerce through mobile devices, and the burgeoning tech-savvy “Generation X” spenders.
Current account surplus buoyed by strong BPOs Business World Online 9th May 2016
The Philippines is expected to maintain a current account surplus this year given expectations of sustained double-digit growth in the business process outsourcing (BPO) sector, with the industry estimated to have grown by 16.4% in 2015. Estimates from the government’s Investor Relations Office (IRO) indicate receipts from the BPO sector of P220-billion estimate for 2015, up from the $18.9 billion generated in 2014. The BPO industry, whose clients are foreign companies tapping Filipino workers for call centers and programming, is thought to have employed about 1.1 million Filipinos in 2015, with the number seen rising to 1.3 million this year. For 2016, the government targets a 13.6% expansion in revenue to $25 billion.
Electronics firms want CARS-style industry plan Business World Online 8th May 2016
The Philippine electronics industry needs a strategy similar to what the Trade department drafted for the automotive sector, as margins from semiconductors have been going down every year, an industry official said. “We’re still projecting 2%-5% growth for 2016,” Dan C. Lachica, president of Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI), said in a recent interview, but adding the previous main drivers of growth -- the economies of China, Japan and the US -- have not fully recovered. Despite the slowdown in the country’s major export markets, some products are still going strong, including IoT (Internet of things)-related items, telecommunications and radar. “But others are not as strong,” he said. SEIPI is pinning its hopes on the second edition of the Product and Technology Holistic Strategy (PATHS). The first edition of PATHS covered mostly the local business environment with some inputs from the corporate offices of multinational companies. “PATHS 2 will go outside the Philippines, meaning the region as well as US and Europe,” he said. PATHS seeks to identify global technology trends in the semiconductor and electronics industry. Based on these trends, it will determine the strategic and specific products and technologies that the Philippines should focus on.
Group lodges complaint against telcos’ ‘slow but expensive’ Internet service Business Mirror 5th May 2016
A party-list group on Thursday filed a complaint before the National Telecommunications Commission (NTC) against big telecommunications companies (telcos), in connection with the country’s “slow, but expensive, Internet connection.” Party-list Bayan Muna, in a petition, demanded better Internet service from telcos, particularly Globe Telecom and Philippine Long Distance Telephone (PLDT). The petition also urged the NTC to investigate Globe and PLDT; order them to give an across-the-board refund/rebate to all their consumers, in an amount to be determined as fair and equitable; and order payment of fines, in an amount commensurate to the damage and prejudice to the consumers. The group wants the NTC to refer the case to the Philippine Competition Commission for determination of anticompetitive behavior and abuse of market by Globe and PLDT and other Internet-service providers (ISPs). The Philippines has the second slowest average download speed among 22 Asian countries, with 3.6 megabytes per second (mbps), next to Afghanistan with 2.52 mbps. The Philippines, with 3.6 megabytes per second, lags behind Laos (4.0 Mbps), Indonesia (4.1 mbps), Myanmar (4.9 mbps), Brunei (4.9 mbps), Malaysia (5.5 mbps) and Cambodia (5.7 mbps).
Window narrows for elusive DICT measure Business World Online 4th May 2016
Roughly four months after being ratified by Congress -- and with a little more than a month left before this administration ends -- the measure that will form an ICT department (DICT) has yet to land on the president’s desk for signing. “The DICT bill has not yet been transmitted by Congress to OP [Office of the President],” said Undersecretary Bernardito E. Sayo of the Presidential Legislative Liaison Office of the House of Representatives in a text message forwarded by Communications Secretary Herminio B. Coloma, Jr. House Bill No. 6198, which the Senate adopted -- hence, foregoing the need for a bicameral conference committee to iron out any difference between versions -- was ratified by both chambers in December last year. “We are in the process of submitting it to the OP; [I] don’t know why the delay,” House Speaker Feliciano “Sonny” R. Belmonte, Jr. said in a text message on May 3 when asked for updates. John D. Forbes, senior adviser of the American Chamber of Commerce of the Philippines, said that the business community has been advocating the establishment of a DICT for “over a decade.” This is the closest the measure has gotten to being enacted.
With upcoming election, Philippines’ ICT growth hangs in the balance Enterprise Innovation 4th May 2016
With the upcoming 2016 Presidential Election, the Philippines’ ICT growth once again hangs in the balance, according to IDC Philippines. Over the past two presidential elections, IDC said it has seen the country's ICT spending experience differing fates. In 2004, the year Gloria Macapagal-Arroyo won as the president, ICT spending grew by 12 percent. The following years reached a plateau of 5–7 percent on ICT spending growth and increased by 15 percent growth in the next four years. Most government projects were discontinued by the incumbent president, Noynoy Aquino, in 2010 as part of various check-and-balance exercise. This resulted in an ICT spending growth of 5 percent at the end of 2010. After a similar 5–9 percent growth in the following two years, 2013 observed a 27 percent growth on the back of government-led projects, fiscal reforms, and anti-corruption measures that led to improvements in the country's international ratings and rankings. "This year, IDC expect the total ICT spending growth in the country will hover between 8 percent to 10 percent. Barring any major wildcard events such as natural disasters, a worldwide recession, and political revolution, IDC believes that the country's ICT sector is headed toward a positive ICT outlook at the end of 2016 and beyond,” said Jubert Alberto, Country Head, IDC Philippines.
Infrastructure
Rehabilitation of PNR sought Business Mirror 11th May 2016
A lawmaker has strongly proposed the revitalization, rehabilitation and modernization of the Philippine National Railways (PNR) to help address the problems in traffic and mass transportation. Rep. Gus S. Tambunting of the Second District of Parañaque City said House Bill 6017 seeks to further amend certain sections of Republic Act (RA) 4156, as amended by RA 6366. RA 4156 creates the PNR, while RA 6366 provides for the rehabilitation and modernization of the railway agency and its facilities. “An effective and systematic mass-transportation program provides a significant positive economic impact. It also creates a transit investment on jobs and business revenues, and affirms a variety of broader indirect benefits,” Tambunting said.
DOJ: Makati’s 25% bond for infrastructure contractors illegal Business Mirror 11th May 2016
‘Unfair and oppressive” were the words used by the Department of Justice (DOJ), when it issued a negative opinion on Makati City’s practice of requiring contractors to deposit 25 percent of an infrastructure project’s total cost as cash bond before they can secure the necessary local permits. In his legal opinion obtained by the BusinessMirror, Acting Justice Secretary Emmanuel L. Caparas said the cash bond is unreasonable, considering that a winning government contractor is only allowed a 15-percent advance payment of the total project cost under the Implementing Rules and Regulations of Republic Act 9184. The DOJ issued the legal opinion as response to the letter-request of Public Works Secretary Rogelio L. Singson. The Department of Public Works and Highways (DPWH) sought DOJ’s opinion on the validity and legality of Makati City Ordinance 2005-018, which requires that all road constructions within their jurisdiction must post a cash bond deposit of 25 percent of the total project cost before the necessary permit for excavation be issued. “Accordingly, this opinion is subject to a final determination by the appropriate Regional Trial Court of the validity and constitutionality of Makati City Ordinance 2005-018. Until and unless the ordinance is declared null and void, the presumption of validity stands,” the DOJ added.
Drilon assures P11.2-billion dam project will push through Business Mirror 9th May 2016
Senate President Franklin M. Drilon assured that the P11.2-billion Jalaur River Multipurpose Project Stage II (JRMP II) in Calinog, Iloilo, will push through regardless of whoever the next president will be. The JRMP II is one of the biggest projects of the National Irrigation Administration approved under the administration of President Aquino. Drilon said the bidding has already taken place and they are now about to award the winning bidder. They are just waiting for the announcement on the approval of the winning bidder by the Korean Eximbank. “This project that will push through; we expect to start the actual construction in the next four weeks. We will continue it and it will be finished in four years’ time regardless who the next president will be,” he stated. However, Drilon said the proposed Iloilo-Guimaras bridge will be subject to the approval of the next president.
Manufacturing
Manufacturing output slowed to 7.8 percent in March–PSA Business Mirror 11th May 2016
The country’s manufacturing output slowed to 7.8 percent in March, latest data released by the Philippine Statistics Authority (PSA) showed. Based on the results of the Monthly Integrated Survey of Selected Industries (Missi) released on Wednesday, the PSA said the growth of the Volume of Production Index (VoPI) was slower than the 14.9 percent recorded in the same month last year and the 11.2-percent growth posted in February 2016. In order to boost the country’s manufacturing output, the National Economic and Development Authority (Neda) stressed that the country must increase productivity in sectors like agribusiness. “We must increase the productivity of agribusiness and manufacturing-related services through continued public investment in research and development. This will boost competitiveness and innovation across all production sectors,” Neda Director General and Economic Planning Secretary Emmanuel F. Esguerra said.
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