| Regional Affairs
Duterte: PH won't 'flaunt' sea dispute ruling vs China Rappler 1st Jul 2016
President Rodrigo Duterte on Thursday, June 30, said he would not "flaunt" a possible ruling against China in a historic case filed by the Philippines over the West Philippine Sea (South China Sea). In his first Cabinet meeting, Duterte said the Philippines finds itself in a "cliffhanger" situation as an arbitral tribunal in The Hague, Netherlands, is set to announce its ruling on the maritime case by July 12. Duterte said the government "will study progressively" how it can use the upcoming ruling. On the upcoming ruling, Duterte added: "We have to make up our minds. We can also prepare the people on where we will go." He also said: "God knows I really do not want to declare any fighting with anybody. And if we can have peace by just talking, I would be very happy." Foreign Secretary Perfecto Yasay Jr, for his part, recounted briefings with various representatives of foreign governments, especially those concerned about freedom of navigation and maritime security. Referring to these foreign government representatives, Yasay said, "They seem to project the impression that if the decision will come out and it would be in our favor, they would like for us to make stronger statements." "I am adverse to that idea, and I told them in no unmistakable terms that the first thing that we will do when we get that decision is to study its implications and its ramifications. What does it mean if we win? There are lots of nuances that we do not know as yet," he said.
Agri-crop diversification: Asean scorecards Inquirer 27th Jun 2016
Poverty is high in the Philippines for two main reasons. First, farm productivity is low which leads to low income. Second, crop-diversification is poor and as a result, export performance is stymied. Fragmented farm production does not support a robust agri-food manufacturing and export. Hence, job creation is sacrificed. This article will describe Philippine farmland diversification during the terms of past Presidents and compare them with Asean countries.
Indonesia's new police chief: Region needs 'to stick together against Abu Sayyaf' Rappler 24th Jun 2016
New police chief Tito Karnavian urges cooperation between the Philippines, Indonesia and Malaysia in addressing the terrorist group Earlier this year, the group kidnapped 14 Indonesian sailors, keeping them in their stronghold in the southern Philippines. They were later freed but there was no information on whether a ransom was paid. The Abu Sayyaf are suspected to be behind the most recent kidnapping. "It is very important to get a close relationship with the Philippines and Malaysia authorities," Karnavian said on Thursday evening, June 24. Because the Abu Sayyaf operate in waters close to the borders of Indonesia, the Philippines and Malaysia, he emphasized the need for the 3 countries to unite and cooperate against the group.
National Affairs
Talk Duterte to me The Economist 9th Jul 2016
Chief among the traits of Rodrigo Duterte that won him the presidential election in May was his forthright manner of speaking. Yet the meaning of his aggressive, expletive-laden talk was often obscure. What would he really do as president? Filipinos are starting to get a glimpse. In one respect—his promise to give the police a free hand to kill criminals, notably suspected drug-traffickers—the man sometimes nicknamed “Duterte Harry” seems to have been taken at his word even before his inauguration on June 30th. In the first six weeks after the election, the police shot dead suspected drug-traffickers at the rate of nine a week, over four times the rate in the preceding four months. A day after being sworn in, Mr Duterte reassured officers paraded in front of him that they had the right to kill suspects who threatened their lives by resisting arrest. “Do your duty—and if, in the process, you kill 1,000 persons because you were doing your duty—I will protect you,” he said. He later took aim at their bosses, accusing five serving and former police generals of being “protectors” of drugs gangs. (They deny the claim.)
Duterte appoints Robredo as HUDCC chief Philippine Daily Inquirer 7th Jul 2016
Finally, a Cabinet post for Vice President Ma. Leonor “Leni” Robredo. President Rodrigo Duterte has appointed Robredo as head of the government’s Housing and Urban Development Coordinating Council (HUDCC), Presidential Communications Secretary Martin Andanar confirmed Thursday. In a press briefing, Justice Secretary Vitaliano Aguirre II also confirmed that Robredo has accepted the said the post.
VP Robredo is Duterte's housing czar Rappler 7th Jul 2016
President Rodrigo Duterte offered Vice President Leni Robredo a Cabinet post, specifically the position of chairperson of the Housing and Urban Development Coordinating Council (HUDCC). The HUDCC was the same agency headed by Robredo's predecessors, former Vice President Jejomar Binay and Noli de Castro. This was announced by Justice Secretary Vitaliano Aguirre II during a press conference on Thursday, July 7. But later that evening, the moment Duterte made Robredo the offer by phonecall was aired by state-run PTV4. In the video, taped on Thursday afternoon, Duterte, apparently at that moment decided to call Robredo using the phone of his longtime aide and now Special Assistant to the President Secretary Christopher "Bong" Go.
Agencies under OP undergo streamlining Business World 5th Jul 2016
President Rodrigo R. Duterte signed his first Executive Order on June 30, directing the reorganization of all offices under the Office of the President (OP). Stipulated in Executive Order No. 1 Section 1, the Cabinet Secretary shall have supervision over the following agencies: Cooperative Development Authority, Housing and Urban Development Coordinating Council, National Anti-Poverty Commission, National Commission on Indigenous People, National Commission on Muslim Filipinos, National Food Authority, National Youth Commission, Office of the President-Presidential Action Center, Philippine Commission on Women, Philippine Coconut Authority, Presidential Commission on the Urban Poor, and Technical Education Skills Development Authority (TESDA).
Duterte to Robredo: Come here often, you're part of admin Rappler 5th Jul 2016
It took more than a month after their proclamation, but the much-awaited first meeting between the country's top two leaders was "very warm" and "definitely broke the ice." In a chance interview on Tuesday, July 5, Vice President Leni Robredo said it was a sigh of relief for her to finally have a formal meeting with President Rodrigo Duterte. Robredo paid a visit to Duterte at Malacañang Palace on Monday, July 4. Their first formal meeting came just a few days after their first public appearance together at the change of command ceremony of the Armed Forces of the Philippines last Friday, July 1.are of.') – Rappler.com
Duterte’s 1st EO will be FOI Manila Bulletin 4th Jul 2016
The long-awaited Freedom of Information (FOI) measure may finally see the light of day under the Duterte administration. In keeping with his campaign promise, President Duterte is expected to issue an executive order that aims to give greater public access to government documents in the interest of transparency and accountability. The presidential directive mandating disclosure of public documents is currently being drafted and “fine-tuned” and will be released either this week or next week, according to Presidential Communications Operations Secretary Martin Andanar. This will likely be the first EO of the new Philippine leader.
Federalism in play as bills set charter agenda Business World 4th Jul 2016
Senator Franklin M. Drilon filed Resolution of Both Houses No.1 (RBH1) urging a Constitutional Convention (Con-Con) to review the Constitution’s economic provisions, but left the agenda open to the drafters. “All that I have put on the table for discussion and passage is a proposed Constitutional Convention. What will happen in the Con-Con is something that is beyond the control of anyone,” Mr. Drilon explained in a news conference.
Drilon pushes con-con, says there is a need to re-examine Constitution CNN Philippines 3rd Jul 2016
Senate President Franklin Drilon filed a resolution pushing for constitution convention to revise the 1987 Constitution. Drilon said there is a need to re-examine the 29-year-old Constitution and see “if it is still attuned or responsive to the demands of present-day realities." Pursuant to Article XVII, Section 3 of the Constitution, Congress may, by a vote of two-thirds of all its members, call a constitutional convention to propose amendments to, or a revision of, the Constitution. The House of Representatives and the Senate have to vote separately on the resolution. Drilon said that Resolution of Both Houses No. 1 calls for a convention, whose members will be elected by January 2017. They are expected to propose amendments or revisions to the Constitution.
3 days in Manila, 3 days in Davao for Rody Philstar 2nd Jul 2016
President Duterte is set to fly in and out of Manila as he discharges his task as the highest official of the land. “I understand he will be working three days in (Davao City) and three days in Manila,” his son, Vice Mayor Paolo Duterte, said yesterday. The President will reportedly hold office at the Malacañang of the South inside the Department of Public Works and Highways premises here in Barangay Panacan. A satellite office has been established here as base whenever Duterte is in town. The younger Duterte said he and his siblings, Mayor Sara Duterte-Carpio and brother Sebastian, are willing to help their father if he needs their help. “We will just wait for his instructions, if he needs our help with regard to anything. Ready naman talaga kami, mga anak kami eh (We are ready, we are his children),” Paolo said.
Disaster preparedness tops first Cabinet meeting The Philippine Star 1st Jul 2016
Disaster preparedness was the first item tackled in the first official Cabinet meeting of the Duterte administration in Malacañang yesterday. But even before the presentation of the National Disaster Risk Reduction and Management Council (NDRRMC), President Duterte cited the need to pre-position equipment in disaster-prone areas to enable the government to provide aid to affected residents. “The resources must be on deck, positioned nearby. If you can draw the path of the typhoon and deploy the assets of government, you need to bring clean water and food that do not need to be cooked,” Duterte said.
Villar lists priority measures in 17th Congress Business Mirror 1st Jul 2016
The Senate is expected to front-load the passage of an enabling law converting the multibillion-peso coconut-levy collection into a trust fund for coconut farmers soon as the 17th Congress convenes on July 25. Sen. Cynthia A. Villar on Friday confirmed plans to enlist the Senate leadership’s commitment to prioritize approval of the re-filed bill embodying the “Coconut Farmers and Industry Development Act,” which provides for “a coconut-levy trust fund for coconut farmers.” Early passage of the measure is seen as the senator noted that the bill already went through committee hearings and plenary deliberations in the previous Congress, where, Villar recalls, she was “able to sponsor the said bill under Committee Report 106 and it reached the period of amendments in the Senate plenary.”
Duterte kicks off with good signals’ Business World 30th Jun 2016
President Rodrigo R. Duterte listens as his predecessor, Benigno S. C. Aquino III, discusses a point before the latter left Malacañan Palace in this photo taken yesterday before the former assumed office for a six-year term. -- Reuters Resting his left hand on a Bible, Mr. Duterte vowed to preserve and defend the Constitution, execute its laws and do justice to every man -- words he later repeated and elaborated on in an inaugural address that businessmen, human rights groups and the diplomatic community cheered.
Duterte sworn in as president of Philippines Manila Bulletin 30th Jun 2016
MANILA, Philippines — Rodrigo Duterte was sworn in Thursday as president of the Philippines, with some hoping his maverick style will energize the country but others fearing he will undercut one of Asia’s liveliest democracies amid threats to kill criminals en masse. The 71-year-old former prosecutor and longtime mayor of southern Davao city won a resounding victory in May’s elections in his first foray into national politics. Duterte, who begins a six-year term as president, captured attention with promises to cleanse the poor Southeast Asian nation of criminals and government crooks within six months — an audacious pledge that was welcomed by many crime-weary Filipinos but alarmed human rights watchdogs and the influential Roman Catholic church.
10 ways Duterte plans to change the Philippines Manila Bulletin 30th Jun 2016
Manila, Philippines – Rodrigo Duterte was sworn in as Philippine president on Thursday after a landslide election victory last month built on a series of bold and controversial pledges. Here are 10 ways Duterte plans to change the Philippines during his six years as president: Duterte has said he must take extreme measures to stop the Philippines becoming a narco-state. Security forces will be given shoot-to-kill orders. Bounties will be paid for killing drug dealers. Ordinary citizens will also be encouraged to kill suspects. The death penalty will be restored, by hanging.
Duterte takes oath as 16th President of the Philippines Rappler 30th Jun 2016
Rodrigo Duterte took his oath as the country’s 16th President at exactly 12 noon on Thursday, June 30. Kitty, his youngest child, held the old Bible of Duterte’s mother, Soledad or “Nanay Soleng," during the oath taking administered by Supreme Court Associate Justice Bienvenido Reyes. With Duterte as he took his oath at the Palace Rizal Hall were his 4 children – Sara Duterte-Carpio, Paolo, Sebastian, and Kitty. He signed his oath of office afterwards, surrounded by his children and Reyes. Duterte, who won by a landslide in the May elections with 16.6 million votes, is the country’s first president from Mindanao.
Aquino boasts of modernization, thanks AFP in final speech Rappler 28th Jun 2016
Rain threatened to dampen President Benigno Aquino III’s testimonial parade at the Armed Forces of the Philippines (AFP)’s headquarters in Camp Aguinaldo on Monday, June 27, but the skies cleared early enough for the outgoing president to bid the military goodbye. In his farewell speech, Aquino waxed nostalgic as he thanked the AFP for its service while highlighting improvements it's seen throughout his tenure. “Good governance is good economics,” said the President as he explained how, under his administration, more than P60 billion had been spent on much-needed modernization.
‘Cutting poverty requires tripling Filipinos’ income’ BusinessMirror 28th Jun 2016
Eradicating poverty in less than 25 years would entail tripling the income of Filipinos to significantly narrow the gap between the rich and the poor, according to the National Economic and Development Authority (Neda). NEDA Assistant Director General Rosemarie G. Edillon said eradicating poverty and hunger, and having decent jobs are considered the primary goals and aspirations of Filipinos for their country, according to “AmBisyon Natin 2040,” the long-term vision of the Philippines. “If we are able to roll out inequality-reducing strategies, then by 2030, when we report on our accomplishments on the Sustainable Development Goals [SDGs], we can say we have left no Filipino behind,” Edillon said in a presentation at the Economic Journalists Association of the Philippines-Neda Forum on AmBisyon Natin 2040 on Tuesday.
World Bank: Palace executive order can resolve squatter problem in Metro Manila BusinessMirror 27th Jun 2016
The burgeoning of urban slums in cities nationwide can be addressed by the national government through the issuance of an executive order (EO), according to the World Bank. In a policy paper, the World Bank said an EO can be issued by the president to create a task force to resolve land-proclamation issues. The World Bank said the Presidential Interagency Task Force should include the Metropolitan Manila Development Authority and concerned cities that have problems with proclamations of land.
Hardline policy on criminality good for investors – PEZA Manila Bulletin 27th Jun 2016
The hardline stance against criminality of the incoming Duterte administration is expected to ensure safety of businesses in the country and will encourage foreign investors to pour their capital in a secure area, according to the Philippine Economic Zone Authority (PEZA). PEZA Director-General Lilia B. De Lima told reporters that President-elect Rodrigo Duterte’s policy on peace and order will be a big boost on the confidence among businessmen in the country and those still exploring the idea of relocating in the Philippines. “With Duterte concentrating on peace and order, that is good for the business community,” De Lima stressed.
Pernia: New metrics needed to chart growth across class, regions BusinessWorld 24th Jun 2016
The incoming Socioeconomic Planning Secretary on Thursday laid out a broad outline of how his agency plans to introduce new metrics to the Philippine Statistics Authority that would cover economic gains distributed across socioeconomic classes and regions, thus helping achieve the next stage of growth -- making sure more Filipinos are lifted out of poverty. “If the distribution is too lopsided, or eschewed towards the higher income classes, we will never, it’s going to be very hard to reduce poverty, obviously. We’re also going to have, if it’s possible, to do it every quarter for income classes, but certainly every year, or every semester we will have that statistic,” Enresto dM. Pernia told an audience of business leaders at a joint meeting participated by the Makati Business Club, US Philippines Society, and Philippines-United States Business Council.
Duterte gov’t to push for P1-T marine economy Manila Bulletin 24th Jun 2016
The Duterte government will harness what previous administrations have failed to tap – “blue economy” or the ocean and marine resources, which have the potential to generate at least P1 trillion. Incoming Socio-economic Planning Secretary Dr. Ernesto Pernia said the domestic economy is mostly dependent on land resources which is not even half of the country’s bounty since a huge “wealth of the economy” are marine resources. “We need to evaluate and monitor our blue economy,” said Pernia yesterday during the Makati Business Club’s special joint meeting with the Philippines-US Business Council. “Our marine economy is a large economy. Our marine wealth spans about 70 percent of our territorial (area) as defined internationally.”
Customs
Hasten sale of overstaying containers, foreign lines in PH press BOC PortCalls Asia 8th Jul 2016
The Association of International Shipping Lines (AISL) is reiterating its call for the new Bureau of Customs (BOC) leadership to speed up auction and abandonment procedures so containers belonging to carriers can be reused or repositioned in other areas. AISL general manager Atty. Maximino Cruz, in an interview with PortCalls, suggests the “immediate disposal of overstaying containers” that are either abandoned or forfeited. He said these containers number around 3,000 just at the Manila International Container Terminal, Manila South Harbor, Asian Terminals Inc.-Inland Clearance Depot, and Batangas port. “For the lines, speeding up auction sales will assure early return of empty containers to shipping lines. These empty containers are considered ships’ gears and badly needed for the loading of export products,” Cruz explained.
From 5 days to 5 hours: BOC to ease processing The Philippines Star 8th Jul 2016
It may seem too good to be true, but Customs Commissioner Nicanor Faeldon aims to reduce the time for processing and releasing imported shipments from five days to five working hours. He told Bureau of Customs (BOC) employees that he intends to meet with government agencies issuing import permits to come up with a system to hasten the release of shipments and prevent the repeat of another port congestion. The former Marine captain attributed the incomplete document requirements submitted to the BOC as one of the causes for the late release of shipments.
Manila North Harbour revamp 25% ahead of schedule PortCalls Asia 7th Jul 2016
Port operator Manila North Harbour Port, Inc. (MNHPI) is infusing almost P2 billion this year to complete Phase 1 of Manila North Harbour’s modernization, according to chief executive officer Richard Barclay. In an interview with PortCalls, Barclay said MNHPI is 24.6% ahead of the scheduled development of Phase 1. The last part of the development includes extending the front wharf from Pier 16 to Pier 14 and reclaiming Slip 15. The front wharf will be completed by December of this year while the container yard will be operational by July 2017. The project will add another 200 meters to North Harbour’s quay length and increase the depth to 13 meters. Barclay estimated Phase 1’s total cost to be P10 billion. MNHPI holds a 25-year contract to develop, manage, operate, and maintain Manila North Harbour.
BOC chief eyes 5-hour cargo clearance Port Calls Asia 7th Jul 2016
New Philippine Customs Commissioner Nicanor Faeldon plans to reduce to five hours from five days the processing time for shipments at the Bureau of Customs (BOC). The former Marines captain on July 4 said this can be done if stakeholders complete the requirements before their shipments arrive. Additionally, Faeldon plans to eliminate duplication of permits and lessen the number of signatories in documents, adding that he wants port collectors to be the sole signatories of transaction documents. Like him, predecessors John Sevilla and Alberto Lina had sought to reduce cargo clearance time. Sevilla targeted completion of processing of 90% of imports within four hours through computerization, while Lina wanted to cut the number of signatories needed in shipment processing so cargoes could be cleared within 30 minutes instead of in one to two days.
PH tariff barriers ‘burdensome’ The Manila Times Online 1st Jul 2016
Nearly three-fourths of exporters and importers in the Philippines are burdened by bureaucratic measures and regulations—the so-called non-tariff measures (NTMs)—that serve as barriers to trade, according to a survey conducted by the International Trade Center (ITC) in partnership with the Department of Trade and Industry (DTI). The survey found that about 70 percent of the 1,150 local exporters and importers surveyed suffer from burdensome regulations or NTMs in the Philippines—one of the highest rates in Asia compared to other ITC surveys conducted in the region. The export clearance process in the Philippines is one of the most burdensome in Asia, requiring approval from some 50 public and private institutions and high fees, which together serve as barriers to trade.
Outgoing Customs chief Lina says out-of-court settlement on P21-billion PSPC tax case possible BusinessMirror 30th Jun 2016
The Bureau of Customs (BOC) is now passing to the Duterte administration its efforts to collect P21 billion from oil giant Pilipinas Shell Petroleum Corp. (PSPC), representing unpaid taxes on its importation of catalytic cracked gasoline (CCG) and light catalytic cracked gasoline (LCCG) for years 2006 to 2008. In an interview, former Customs Commissioner Alberto D. Lina said it’s now up to the next administration to do a follow-up on the P21-billion case still pending before the Court of Tax Appeals (CTA). “Yes, siya talaga [the next administration]…wala ka magagawa, that’s how the law takes it course. They should have settled from the start,” Lina said.
PPA facing corruption raps over North Harbor feud Inquirer.net 28th Jun 2016
The operator of Manila North Harbor is threatening to file graft and corruption charges against officials of the Philippine Ports Authority (PPA) amid the latter’s move to stop the port from handling lucrative international cargo. Manila North Harbor Port Inc. (MNHPI), controlled by conglomerate San Miguel Corp., told PPA to “immediately cancel and rescind” Memorandum Order 08-2016, which directed port offices, harbor pilots, shipping lines and agents not to handle international cargo at the Manila North Harbor. “Otherwise, we shall institute appropriate criminal and administrative actions against you and all those responsible, for violation of the Anti-Graft and Corrupt Practices Act with the Office of the Ombudsman,” said MNHPI, through the Diaz Del Rosario & Associates law office, in a letter addressed to PPA officer-in-charge Raul Santos dated June 23, 2016.
Outgoing Customs chief backs lifting of bank secrecy rules BusinessWorld 26th Jun 2016
Lifting bank secrecy rules covering import transactions and improvements on valuation of goods would boost customs revenues, the outgoing chief of the Bureau of Customs (BoC) said, as total collections are seen still below target during the second quarter. Though not discussing actual figures, Customs Commissioner Alberto D. Lina said the bureau’s collections likely went higher than the P86.357 billion raked in during the comparable April-June period last year, if still below the target set for the period.
Defense & Security
The U.S.-Philippines Defense Alliance Council on Foreign Relations 5th Jul 2016
The United States and the Philippines have a long-lasting and complex security relationship. Based on a defense treaty forged in the early years of the Cold War, Washington and Manila conduct joint exercises and other forms of military training to bolster the preparedness of the Armed Forces of the Philippines (AFP) in response to crises and humanitarian disasters. The relationship is also seen as a pillar of the U.S. strategic rebalance to Asia. The U.S. military provides vital security to the Philippines at a time of tensions over maritime sovereignty and lingering concern over militant forces in the country. The alliance also grants the United States a foothold to better promote stability and peace in an increasingly volatile region.
Duterte to continue AFP modernization program Philstar 3rd Jul 2016
Defense Secretary Delfin Lorenzana has assured the people that the Duterte administration would pursue the 15-year modernization program of the Armed Forces of the Philippines (AFP). Lorenzana, a retired Army major general, said the Department of National Defense (DND) would likewise prioritize the resolution of internal security problems by acquiring additional military equipment to boost military capabilities in addressing internal conflicts. “Territorial defense is one of the priorities of the Duterte administration. It is very important as we need to protect our territories against encroachment by other parties,” Lorenzana told reporters last Friday during the welcome ceremonies for the new DND chief at Camp Aguinaldo in Quezon City.
Aquino and the PH military: Toys for the big boys Rappler 27th Jun 2016
The Philippines' biggest ship is no longer from the World War 2 era. It is also no longer one of those hand-me-downs from its former colonizer, the United States. BRP Tarlac was commissioned in early June 2016, a brand new 123-meter-long strategic sealift vessel that is bigger than former US Coast Guard twin ships BRP Ramon Alcaraz and BRP Gregorio Del Pilar. It is the first of two Indonesian-built landing dock vessels acquired for nearly P4 billion ($85 million*). The ships are currently undergoing finishing touches and will eventually serve as a platform for command and control of naval operations. The latest delivery among the new acquisitions of the Armed Forces of the Philippines was named after one of the provinces that fought for freedom from an earlier colonizer, Spain, in the 1800s. But it might as well have been named after the home province of outgoing President Benigno Aquino III, the only Philippine president since martial law who has given unprecedented attention to the military's capability upgrade.
DND allocates PHP80.4-M for acquisition of ‘Virtual TESS’ Manila Bulletin 11th Jul 2016
The Department of National Defense (DND) is allocating the sum of PHP80,400,000 for the procurement the “Virtual-Tactical Engagement Simulation System Lot 2″ (Virtual TESS) for the use of the Armed Forces of the Philippines. The latter is a training system for using weapons. Laser transmitters are usually used instead of bullets, larger rounds, or shorter-range guided weapons.
Duterte admin refocusing defense, security priorities BusinessMirror 4th Jul 2016
The assumption into power of President Duterte has redrawn and drastically altered the country’s defense and national security priorities by totally shifting the military’s campaign to the anti-criminality drive, with particular focus on the local terrorist Abu Sayyaf Group (ASG), and putting territorial defense as a secondary goal. The decision to acquire helicopters, rather than state-of-the-art fighter jets, and patrol craft, instead of frigates to initialize a blue water navy, has abruptly halted the Armed Forces’ efforts to modernize, which was ardently pursued by the previous administration. However, in the words of National Security Adviser Hermogenes C. Esperon Jr., the morph in the military’s procurement program, which comes by way of purchasing smaller ticket items instead of bigger ones, would put impetus to the war against the ASG and other local threat groups, which President Duterte wanted neutralized the soonest possible time.
Hope and fear as combative president takes over Philippines The Philippine Star 1st Jul 2016
Rodrigo Duterte was sworn in Thursday as president of the Philippines, with many hoping his maverick style will energize the country but others fearing he could undercut one of Asia's liveliest democracies amid his threats to kill criminals en masse. The 71-year-old former prosecutor and longtime mayor of southern Davao city won a resounding victory in May's elections in his first foray into national politics. He has described himself as the country's first leftist president and said his foreign policy will not be dependent on the United States, a longtime ally. The frugal noontime ceremony at Malacanan, the Spanish colonial- era presidential palace by Manila's murky Pasig River, was a break from tradition sought by Duterte to press the need for austerity amid the country's grinding poverty. In the past, the oath-taking has mostly been held at a grandstand in a historic park by Manila Bay, followed by a grand reception.
Priority mission for DND’s Lorenzana: Neutralize ASG BusinessMirror 30th Jun 2016
Dealing with the security and economic threats posed by the Abu Sayyaf Group (ASG) would be the first business of the day for incoming Defense Secretary Delfin N. Lorenzana under the military’s overall security objectives after President Rodrigo R. Duterte spelled out his administration’s strong policy for law and order. “We will start with the Abu Sayyaf, because it was the order of the new president. We will address the Abu Sayyaf immediately so that at least we could neutralize them in order that we could prevent them from doing what they are doing right now,” Lorenzana said on the eve of his assumption as new defense secretary.
‘Determined attacker’ can still do mayhem at Naia BusinessMirror 29th Jun 2016
Despite airport authorities’ assurance that “we have implemented heightened security at the premier airport,” there still remains the possibility that a criminal of the same bent as the terrorists in Turkey would be able to get through the Ninoy Aquino International Airport (Naia). “Heavier screening may necessarily take more time. We ask for cooperation from passengers for their own safety,” Manila International Airport Authority Spokesman David de Castro said. He said: “Part of the airport surveillance [system] are the perimeter fences and vehicle and baggage scanners.”
Manila, Jakarta revive border pact vs criminals BusinessMirror 29th Jun 2016
The spate of abductions perpe-trated by the Abu Sayyaf Group (ASG) against Indonesians has prompted Manila and Jakarta officials to revisit and implement an old but existing agreement that both countries can actually pursue criminals in each other’s territory, provided such is in the conduct of pursuit operations. Outgoing Defense Secretary Voltaire T. Gazmin said the 1975 Border Crossing Agreement with Indonesia was revisited during his recent talks with his Indonesian counterpart in Manila, wherein the principle of air and maritime patrols was agreed upon, along with Malaysia, within the three countries’ “maritime areas of common concern.”
Duterte 'open' to talks with Abu Sayyaf Rappler 26th Jun 2016
Philippine president-elect Rodrigo Duterte said late Saturday, June 25, he could be open to peace talks with the Abu Sayyaf group, which recently beheaded two foreign hostages and kidnapped 7 more. "The Abu Sayyaf is not my enemy. I know it is connected with the issue of Mindanao," Duterte told supporters in a speech in the Cebu late Saturday, June 25, referring to the rebellion-torn south of the country. "That is why I want to ask them: Are they willing to talk or do we just fight it out?" said the firebrand politician, who campaigned on promises to get tough on crime. He assumes office on June 30. The incoming leader himself hails from Mindanao, where a decades-long Muslim separatist insurgency has claimed more than 100,000 lives. While previous administrations have opened talks with major Muslim separatist groups in the South, they have deployed troops to hunt down the Abu Sayyaf, known for its kidnap-for-ransom activities targetting mostly foreigners. The Abu Sayyaf is a loose network of a few hundred Islamic militants formed in the 1990s with seed money from Osama bin Laden's Al-Qaeda network that has earned millions of dollars from kidnappings-for-ransom. Although its leaders have pledged allegiance to Islamic State, analysts say they are mainly focused on lucrative kidnappings. Police in Mindanao said that the group is even "outsourcing" its kidnap operations. Last week, 7 Indonesian seamen were abducted in waters off the southern Philippines, prompting Jakarta to ban any Indonesian-flagged vessel from sailing to the Philippines.
Gov’t ready to thwart IS terror threat – Palace Manila Bulletin 26th Jun 2016
Government forces are prepared to thwart any security threat after the Islamic State terror group rallied its forces to focus their fighting on Southeast Asia, particularly the Philippines. “Ang banta ng terorismo saan man ito galing ay hinaharap at tinutugunan ng ating Sandatahang Lakas at Pambansang Pulisya (The Armed Forces of the Philippines (AFP) and the Philippine National Police continue to address any threat of terrorism wherever it may be coming from),” Presidential Communications Operations Secretary Herminio Coloma Jr. said over government radio.
AFP modernization to focus on fighting internal threats The Philippine Star 24th Jun 2016
The continuation of the Armed Forces of the Philippines (AFP) Modernization Program will give more focus on platforms that can be used to address the country's internal security threats, incoming AFP chief-of-staff Lt. Gen. Ricardo Visaya said. "(President-elect Rodrigo Duterte) would like to start by improving and updating equipment use for internal security operations so he will prioritize the acquisition of modern helicopters and fastcrafts, with nightfighting capabilities," Visaya said on Thursday. The acquisition of new equipment will help in dealing with the ongoing campaign against the Abu Sayyaf Group (ASG) and New People's Army threats.
Southeast Asian Islamic State unit being formed in southern Philippines — officials GMA News Online 24th Jun 2016
Southeast Asian militants who claim to be fighting for Islamic State in the Middle East have said they have chosen one of the most wanted men in the Philippines to head a regional faction of the ultra-radical group, security officials said on Thursday. The claim was made in a video that was recently posted on social media, possibly last week, a military intelligence official in the Philippines told Reuters. The video is significant, experts say, because it shows that Islamic State supporters are now being asked to stay home and unify under one umbrella group to launch attacks in Southeast Asia, instead of being drawn to the fight in the Middle East. Authorities in the region have been on heightened alert since Islamic State claimed an attack in the Indonesian capital Jakarta in January in which eight people were killed, including four of the attackers. For decades, Abu Sayyaf has been known for extortion, kidnappings, beheadings and bombings, and is one of the most brutal Muslim rebel factions in the south of the largely Christian Philippines. The group has posted videos on social media sites this year pledging allegiance to Islamic State militants in Iraq and Syria. The latest video appears aimed at recognising Hapilon as the Southeast Asian leader of the group, anti-terrorism experts said. But Philippine military officials dismissed these concerns, saying the video was just propaganda and should be ignored. "People should not be bothered by this," said Philippine military spokesman Restituto Padilla "Authorities are working on this. They can be identified, and they can be hunted down."
Economics
US lauds Philippines for luring more FDI Philstar 7th Jul 2016
The Philippines is becoming a more attractive destination for foreign direct investment (FDI) and the country’s growing middle class is quickly spending their disposable income in a stable political environment, helping gross domestic product soar to an average growth of 6.2 percent over the last six years, the US State Department said. A report by the State department’s Bureau of Economic and Business Affairs on Tuesday said FDI in the Philippines reached $5.72 billion in 2015 with the majority of investment inflows going to manufacturing, finance and insurance, real estate, wholesale and retail trade, and construction.
Will services continue to drive the Philippine economy? East Asia Forum 5th Jul 2016
The services sector dominates the Philippine economy. In 2015, it accounted for 59 per cent of GDP and 54.5 per cent of employment. In recent years the industry sector — which includes manufacturing and construction — has started to recover, growing faster than services. But given its size, the services sector remains the key driver of the economy contributing more to GDP growth than all other sectors combined.
DoF to reorganize amid inclusive-growth mandate Business World 4th Jul 2016
The Department of Finance is set to reorganize to “realign the work in teams rather than individuals.” In an interview with reporters, Mr. Dominguez said the designation of four new undersecretaries -- whom he did not name -- was still being processed, in observance of a Palace order to keep personnel in place for up to 30 days. He said, however, that will be “bringing in a chief economist for the department,” a function performed by Undersecretary Gil S. Beltran under the previous government. So far, there has been no designation yet to the Monetary Board, as well as the Governance Commission for Government Owned and Controlled Corporations, although for the latter agency, Mr. Dominguez said he found “the people there are quiet, good, and have achieved good results.” As for the organizational structure, Mr. Dominguez said it will be revamped by “realigning our work in teams rather than individuals.” There will be one team each for legal, revenue, administration, and public-private partnerships and special concerns, he said.
Lopez to revise BOI investments growth target Manila Bulletin 3rd Jul 2016
Trade and Industry Secretary Ramon Lopez said he will review the modest 5 percent investments goal of the Board of Investments citing a bullish business environment under the new administration. In a talk with reporters after the turnover ceremony of the DTI leadership, Lopez said the review means an upward revision of growth target. “I will review the target, we are bullish so we will have higher growth target,” he said. The BOI had set a 5 percent investments growth goal for 2016 from the P366.74 billion approved in 2015.
New DTI head wants more foreign involvement in local trade Inquirer 2nd Jul 2016
To reflect the bullish economic outlook trumpeted by President Duterte in his oath-taking Thursday, the new Trade chief is eyeing to open up more industries to foreign investments. On the sidelines of the change in leadership ceremonies Friday, Trade Secretary Ramon Lopez said he wanted to review the Foreign Investment Negative List (FINL) to allow more activities entailing foreign equity. The FINL is issued yearly via an executive fiat.
BIR's new chief nixes Henares's orders on his first day Philstar 1st Jul 2016
The new commissioner of the Bureau of Internal Revenue (BIR) just gave taxpayers his welcome gifts. True to his pronouncements, BIR chief Cesar Dulay suspended all tax probes, revoked two of his predecessor's orders and restricted implementation of others issued last month on his first day. "I just signed today three orders," Dulay told The STAR in a phone interview. The orders will not take effect until published. Under Revenue Memorandum Order (RMO) 38-2016, the tax chief said he revoked two circulars issued by Kim Henares laying out tax investigation rules against property buyers and sellers. Issued June 7 and 13, respectively, RMO 24-2016 and 25-2016 stated that real estate purchasers and sellers might get investigated if they could not prove financial capacity for owning their assets. "I am recalling those orders as what I stated during our conference in Davao," Dulay said, pertaining to the workshop with the business community last June 20.
NEDA sees Brexit impact on PH economy ‘minimal’ Manila Bulletin 28th Jun 2016
The National Economic and Development Authority (NEDA) said that the exit of the United Kingdom (UK) from the European Union (EU) has minimal direct effect on the Philippine economy. In a statement, Socioeconomic Planning Secretary Emmanuel F. Esguerra said Tuesday that the country can weather the so-called “Brexit” due to its strong macroeconomic fundamentals. “The direct effect of Brexit does not seem substantial, even as we expect that domestic financial markets will experience volatility and huge swings in capital flows in the short term due to uncertainty,” Esguerra said.
Growth seen to have sustained Q1 pace BusinessWorld 28th Jun 2016
Emmanuel F. Esguerra, director-general of the National Economic and Development Authority (NEDA), said gross domestic product (GDP) growth was likely “almost the same” as the 6.9% rate recorded last quarter. That performance was the same as the pace logged in 2014’s last three months and was the fastest since the 7.0% clocked in July-September 2013. “I’m saying, at the very least, it could be as good as the first quarter. [It] could be better. I don’t see it being worse,” Mr. Esguerra said. “Second quarter last year was quite low. I think it will be better,” he said at the sidelines of the Economic Journalists’ Association of the Philippines’ briefing on NEDA’s “AmBisyon Natin 2040” initiative, referring to the upwardly revised 5.8% seen in April-June 2015.
Business confident of 8% GDP growth under Duterte The Philippine Star 27th Jun 2016
A Philippine economy growing by eight percent should not be a problem under the incoming administration, local business groups said. Business groups led by the Philippine Chamber of Commerce and Industry (PCCI), Management Association of the Philippines (MAP) and the Philippine Exporters Confederation Inc. (Philexport) agreed that achieving an eight percent gross domestic product (GDP) growth for the country is not a question of if but a question of when. “I would think it’s a possibility, especially with the incoming administration’s planned push for agribusiness. In the past, instead of growing, our agribusiness has taken a step back. Given how strong our economy is now and if we put more on agriculture, then eight percent GDP growth is definitely a possibility,” PCCI president George Barcelon told The STAR.mThe ambitious eight percent GDP growth, however, may come in the second half of Duterte’s six year term, according to the business groups. “Agriculture relies in infrastructure such as irrigation, transportation, and farm to market roads. These infrastructures would take time to build so probably we will see such economic growth in about two or three years more,” Barcelon said.
Stability and growth The Manila Times Online 26th Jun 2016
The political cycle is said to greatly impact the economic cycle. The relatively peaceful and decisive national elections last May bodes well for sustaining the country’s robust economic growth.Political realignment at the national and local levels has been observed in recent weeks, laying the ground for a fresh presidency with a strong mandate from the electorate. Also, the state of the economy impacts on the real estate market. One major economic phenomenon in the Philippines is the sustained growth of the Business Process Outsourcing (BPO) industry. As earlier reported, total employment in the industry breached the one-million mark by mid-2015 and key industry players are targeting 1.2-1.3 million by year-end. In terms of revenue, industry leaders are projecting to overtake the remittances from overseas Filipinos. With the enactment of Republic Act No. 10844 creating the Department of Information and Communications Technology, more departmental focus may be given to the industry and sector drivers like the BPO industry. This kind of legislative initiative will surely keep the BPO industry and the information and communications technology sector growing. Another political intervention that may sustain growth is the commitment of the incoming Finance Secretary Carlos Dominguez to revisit the Reit Law and its implementing rules and regulations. The law intends to incentivize income-generating properties like office, retail, hotel, and even residential and hospital developments provided that the company that owns them are listed in the stock market and these companies will distribute 90 percent of their net income as dividends to stockholders. Subsequent rules on public float and value-added tax on the transfer dampened the appetite of would-be Reit company applicants. Thus, there is a need to revisit these additional requirements in the implementing rules.
PH economy seen to weather ‘Brexit’ Inquirer 25th Jun 2016
Local stocks fell by 1.29 percent across the board while the peso weakened by 41.5 centavos as global markets reeled from Great Britain’s game-changing decision to break away from the European Union. The bloodbath across global markets yesterday did not spare local equities and the local currency with the main-share Philippine Stock Exchange index shedding 100.06 points or by 1.29 percent to close at 7,629.72 and the peso depreciating to 46.950 from Thursday’s 46.535 against the US dollar at the Philippine Dealing System. Economists and financial experts, however, believe the Philippine economy has enough cushion and the underlying fundamentals are strong enough to counter head winds from a slowdown in the United Kingdom and the euro-zone arising from “Brexit.”
Philippines among top 15 FDI destinations in next 3 years Philstar 24th Jun 2016
The Philippines is now among the top 15 preferred investment destinations of multinational enterprises in the next three years, according to the latest World Investment Report 2016 of the United Nations Conference on Trade and Development (UNCTAD). UNCTAD said China, India and the United States remain the preferred destinations for foreign direct investments (FDIs) between this year until 2018. Hong Kong and Singapore were bumped off from last year’s list and were replaced by the Philippines and Myanmar.
BSP hikes auction of term deposits The Philippine Star 23rd Jun 2016
MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) is set to offer P20 billion more term deposits next month amid the continued strong demand from banks and trust companies. Based on the schedule of term deposit auctions for the third quarter, the BSP is set to offer P50 billion worth of seven- and 28-day term deposits on July 6. The amount is 66.7 percent higher than the P30 billion term deposits the BSP has been offering since the start of the weekly auction last June 8 as part of the shift to the interest rate corridor (IRC) system early this month.
Energy
DENR’s Lopez says bad mining practices dampen crop growth Business World 4th Jul 2016
Department of Environment and Natural Resources (DENR) Secretary Regina Paz L. Lopez said irresponsible mining has held back the agriculture sector, preventing it from serving as a stronger engine for economic growth. “Mining in many areas has in fact adversely affected agriculture,” said Ms. Lopez during a media briefing on Friday. In 2015, the agriculture sector grew 5.8%, below the initial target of 7% to 8%, and still lower than the revised target of 6%. The mining industry reacted negatively to the appointment of Ms. Lopez, with listed mining shares falling sharply on the perception that she will tighten regulation on the sector.
$20-B investment seen for mines within 10 years Business World 30th Jun 2016
“Development of these projects will mean investments of $20-$30 billion,” according to the chamber’s e-mail sent to reporters. An estimated $2.25 billion is expected from two mine projects due to enter operations in 2016; $6 billion from three projects in 2017; $14.75 billion from five projects in 2018; and $2 billion from the sole project expected in 2019 which is the Far South East Gold project of Lepanto Mining Corp. in Benguet. All these investments will come on top of about $18 billion in exploration expenditure.
It Just Got Harder to Build Coal Plants in The Philippines Bloomberg 10th Jul 2016
The Philippines’ new environment secretary will prioritize renewable energy over fossil fuels like coal in approving permits for new power plants. Southeast Asia’s fastest growing economy should build wind, solar and geothermal projects to capitalize on falling costs and minimize emissions, Gina Lopez, named Secretary of the Environment and Natural Resources by President Rodrigo Duterte last month, said in an interview in her office Thursday. Lopez said her family’s ties to renewable energy companies don’t affect her views.
Mines chamber lists firms meeting ISO standard BusinessWorld 8th Jul 2016
“We here at the Chamber commend our responsible members and commit to continue our responsible ways until all our member companies have fully complied with ISO 14001,” read the COMP’s e-mail sent along with the list. The organization was updating the industry’s compliance with Department of Environment and Natural Resources (DENR) Administrative Order 2015-07, requiring compliance for all metals miners with the standard, which lays out best practices in environmental management for many types of industries.
Cusi meets Meralco on servicing poor BusinessWorld 8th Jul 2016
Energy Secretary Alfonso G. Cusi met with Manila Electric Co. (Meralco) President Oscar S. Reyes on Thursday, advising the distribution utility to “service the people who need our help the most.” Mr. Cusi cited those in the crowded informal settlements of Smokey Mountain, Payatas and Muntinlupa.
Cusi prioritizes 100% electrification in first 100 days The Philippine Star 7th Jul 2016
Improved services to the people through 100 percent electrification and speedy processing of public dealings are among the top priorities of the new Department of Energy (DOE) chief in his first 100 days. DOE Secretary Alfonso Cusi vowed to continue the progress made by the previous administration on the national electrification mandate. “What we’re going to do is continue that. That’s not a bad objective. We have to hasten it,” he said.
Hot alphabet soup for mining BusinessWorld 6th Jul 2016
These actions now beg the following questions: Is President Duterte against all mining? I don’t think so. Is he totally against destructive mining? Yes, I believe so, as any government official should be. Will the order for a new audit of all mining operations nationwide result in intolerable delays in the approval of new mining applications? Maybe. I am pro-environment, but I am not anti-mining. I cannot be. I believe only a hypocrite will declare himself 100% anti-mining and yet continue to live on the products of the industry. Most everything in the “built” world -- cement, sand, iron and steel, glass, semiconductors, electronics, as well as coal, oil, and gas -- are all products of extraction, including mining.
DoE’s Cusi to review energy mix Business World 4th Jul 2016
NEW Energy Secretary Alfonso G. Cusi expects to open his term of office reviewing with his staff the target energy mix set by the previous government of 30% each generated from coal, natural gas and renewables, as well as 10% from fuel oil.
‘Coal, mining firms to go through eye of a needle’ BusinessMirror 4th Jul 2016
When it comes to mining and coal-fired power projects, the directive of President Duterte to speed up the release of business licenses and permits will not apply. Environment Secretary Regina Paz L. Lopez told the BusinessMirror that to protect the country’s rich biodiversity from destructive development projects, her department would place under strict scrutiny and extensive consultation all mining and coal-fired power investments. For instance, she said biodiversity experts that were not consulted before would have to be part of assessment of environmental impact of projects. “From now on, we are going to change all that.”
Energy chief vows to make power rates more affordable BusinessMirror 4th Jul 2016
Energy Secretary Afonso G. Cusi said he would form a focus group to zero in on issues related to providing affordable and reliable power rates, particularly in far-flung areas and, hopefully, be able to resolve this during his first 100 days in office. The members of this focus group have yet to be named, he said. Cusi expects “immediate results” nonetheless. During a news conference after the turnover ceremony on Monday morning, Cusi said he “will be busy” during the first 100 days. His priorities include the speedy delivery of cheap and reliable electricity to consumers, particularly those in the provinces.
Energy companies bare wish list for DoE chief BusinessWorld 3rd Jul 2016
Companies in the energy industry bared their wish list for new Energy Secretary Alfonso G. Cusi, who will formally take over the reins of the agency in a ceremony on Monday. Oscar L. de Venecia, Jr., president and chief executive officer of Basic Energy Corp., said a guaranteed feed-in-tariff (FiT) for developers of small geothermal power plants would be welcome, considering the long gestation period for these projects. “A FiT system for geothermal will always be advantageous... It makes it easier for us to invite other potential partners to come in if there’s a FiT. It becomes easy for us to calculate the economics of a project,” he said in a recent interview.
Philippines to review all mines as environmentalist takes the helm Reuters 1st Jul 2016
Regina Lopez's appointment to head the Department of Environment and Natural Resources has sent shockwaves through the mining sector, which fears a nationwide crackdown. "I'm not against the mining industry but I'm against suffering," Lopez told reporters on her first day in office as part of the administration of Rodrigo Duterte. "I do want to evaluate if the country is safe from mining," she told a briefing where videos were aired showing environmental harm from mining along with testimonies from farmers and fishermen opposed to the industry. Lopez said the review would take a month. Her stance suggests a tough regulatory road ahead for Philippine miners, whose nickel ore producers are the biggest suppliers to China. A mining industry lawyer said he was worried a ban on new mining development permits in place since 2012 may not be lifted if the minister's review drags on. President Duterte has warned that he could cancel projects causing environmental harm, though he told business leaders last week that he was not against mining per se.
Mining chamber eyes $30-billion investment in next ten years BusinessMirror 30th Jun 2016
Mining investment in the next 10 years is expected to grow by $22 billion to $30 billion, the Chamber of Mines of the Philippines (COMP) said on Thursday. Given a favorable policy environment under President Rodrigo R. Duterte, mining industry’s big players, represented by COMP, are expected to infuse billion of dollars of investment into the local and national economy. The mining sector’s contribution to the national economy in terms of GDP remains less than 1 percent, as mining’s so-called economic takeoff remains to be seen under the past 15 years under two administrations—nine years under President Gloria Macapagal-Arroyo’s mining- liberalization policy and six years under the Aquino administration’s mining-reform agenda.
NPC applies for P1.65-B recovery-cost adjustments BusinessMirror 29th Jun 2016
The National Power Corp. (NPC) has just filed an application for recovery-cost adjustments worth P1.65 billion. The amount represents additional operating costs incurred by NPC-Small Power Utilities Group (SPUG) as a result of the fluctuation of fuel prices used in power generation. Off-grid, or missionary, areas are locations not connected to the grid and are served by NPC’s SPUG.
Indonesia ban won’t immediately affect PHL’s coal imports, supply–Monsada BusinessMirror 27th Jun 2016
The Department of Energy (DOE) on Monday dismissed fears that the country’s coal supply would be immediately affected by the ban imposed by Indonesia on all vessels en route to the Philippines. Outgoing Energy Secretary Zenaida Y. Monsada cited three reasons coal importation in Indonesia won’t be affected. For one, Monsada said most of the large sailing vessels that transport coal to the Philippines do not bear the Indonesian flag. “The coal itself may come from Indonesia, but the vessel that will transport the coal to the Philippines does not bear the Indonesian flag. Remember that the travel ban is only for vessels bearing the Indonesian flag,” Monsada said.
Challenging Filipino solar-energy usage BusinessMirror 26th Jun 2016
The Philippines consumes a lot of fossil-fuels every year. According to World Bank data, the country’s fossil-fuel energy consumption is more than 60 percent in 2013. This means that a lot of energy consumed comes from coal, oil, petroleum and natural gas. With this situation, Greenpeace Philippines launched the digital campaign Solar Rooftop Challenge, where a series of videos will be released to bust myths on renewable energy (RE). “We will bust myths” through social-media platforms, said Amalie Conchelle Hamoy-Obusan, country director of Greenpeace Philippines. An RE exhibit will be held all over the country to showcase the communities that have become RE users. It will also feature photographs of people, churches, schools and even testimonials of homeowners who have switched to solar power.
MVP calls for separate mining bureau Manila Bulletin 24th Jun 2016
Business tycoon Manuel V. Pangilinan (MVP) yesterday said the incoming Duterte government could consider separating the mining bureau from the Department of Environment and Natural Resources (DENR), the same model adopted by the US government. Pangilinan followed through on a comment made by the next administration’s Socio-economic Planning Secretary Dr. Ernesto Pernia, who was a guest speaker at the forum hosted by the Makati Business Club and the Philippines-US Business Council.
Draft circular by Energy department sets rules on renewable portfolio standards BusinessWorld 24th Jun 2016
The Department of Energy (DoE) has released on Thursday a draft of the rules on renewable portfolio standards (RPS), a market-based policy that requires distribution utilities and other industry participants to source a portion of their power supply from eligible renewable energy resources. It listed nine renewable energy technologies from which mandated participants can choose from: biomass, waste-to-energy, wind, solar, run-of-river hydropower, impounding hydropower, ocean energy, hybrid systems, and geothermal. The department qualified that it may later identify other technologies for inclusion upon the recommendation of the National Renewable Energy Board (NREB).
PH energy sector needs $30B in 15 years – MVP Manila Bulletin 23rd Jun 2016
The Philippines needs to invest up to $30 billion over the next 15 years to beef up power capacity and ensure enough capacity, said Meralco Chairman Manuel V. Pangilinan.But then, if the large number of the supply will come from renewable sources, this would also mean higher cost for consumers and the government should make this clear as early as now. Pangilinan said during the “AIM for Change” roundtable discussion on Wednesday that the power sector should receive more attention than what it is getting from the incoming administration.
Philippines needs $30 B investments in power, says MVP Philstar 23rd Jun 2016
The Philippines needs to invest $30-billion worth of power projects in the next 15 years to meet growing demand amid economic expansion. However, government needs to come out with clearer policy direction on the appropriate energy mix power developers will have to follow, businessman Manuel V. Pangilinan said yesterday. The country’s power demand could double in the next 15 years as the economy continues to grow by at least six percent per year, Pangilinan said during the Asian Institute of Management for Change media roundtable discussion yesterday.
Financial Services
Peso seen stable, competitive amid global volatilities The Philippine Star 7th Jul 2016
The real effective exchange rate (REER) of the peso will remain stable and competitive amid volatilities in the global financial markets brought about by the interest rate hike in the US and the fallout from the decision of the UK to leave the European Union, the Bangko Sentral ng Pilipinas (BSP) said yesterday. BSP Deputy Governor Diwa Guinigundo said the country’s sound macroeconomic fundamentals would likely support the stability of the peso against the dollar. “The country’s firm macroeconomic fundamentals and strong external position could support the broad stability of the peso over the medium-term,” he said.
Duterte’s Team Cuts Philippine Growth Target, Widens Budget Gap Bloomberg 5th Jul 2016
The economic team of Philippines’ newly installed President Rodrigo Duterte lowered growth targets and projected a wider budget deficit as tax revenue disappoints. Growth will probably reach 6 percent to 7 percent this year, Budget Secretary Ben Diokno told reporters in Manila Tuesday following a meeting of Duterte’s economic team. That’s down from a projection of 6.8 percent to 7.8 percent made by the previous administration. Duterte, a 71-year-old former mayor who took office last week, has focused his attention on fighting crime and corruption, leaving economic management to his Finance Minister Carlos Dominguez, a childhood friend of the president, and Diokno. They face the challenge of maintaining investor confidence and keeping growth going in an economy that expanded the fastest in Asia in the first quarter.
BSP issues circular easing lending restrictions Business World 28th Jun 2016
The BSP, through Circular 914 signed on June 23, raised limits for bank lending to related parties that are taking on projects under the government’s Philippine Development Plan and Public Investment Program (PDP/PIP). Still, lending to bank directors, officers, stockholders, and related interests (DOSRI) must be “premised on the overarching principle that the transactions shall at all times be kept above board and conducted on an arm’s length basis,” with the BSP still vigilant for “sweetheart deals” which involve irresponsible lending.
Duterte to speed up PH entry into AIIB Philippine Daily Inquirer 27th Jun 2016
Incoming Finance Secretary Carlos G. Dominguez said the Duterte administration will fast-track the Philippines’ membership in the China-led Asian Infrastructure Investment Bank (AIIB) to widen financing options in line with plans to ramp up infrastructure development.m“The Duterte administration will definitely pursue joining the AIIB as at the forefront of the incoming administration’s socioeconomic agenda is to increase infrastructure spending in the country to 5 percent of the gross domestic product,” Dominguez, through incoming Department of Finance (DOF) spokesperson Paola Alvarez, told the Inquirer.
BSP acts to calm financial markets philstar.com 25th Jun 2016
The Bangko Sentral ng Pilipinas (BSP) said yesterday strong macroeconomic fundamentals and sufficient buffers would help the Philippines survive the decision of the United Kingdom to leave the 28-nation European Union (EU). BSP Governor Amando Tetangco Jr. said in a text message to reporters monetary authorities are ready to act swiftly to minimize the impact of Britain’s decision to leave EU on the domestic financial markets. “BSP is ready to provide liquidity to our market as needed. But we don’t see any need to change stance of monetary policy at the moment,” Tetangco said.
Tax reduction could cost gov’t P55B – Henares Manila Bulletin 24th Jun 2016
The incoming Duterte administration pledged to cut income tax rate of individuals and corporations by seven percent from the current 32 to 25 percent. And Internal Revenue Commissioner Kim S. Henares cautioned fiscal officials to be more careful in adjusting tax rates as it might result in fund shortages that could slow down government’s economic and social programs.The projected tax cut translate to P55 billion in lost revenue annually or more, Henares said. Records show that income tax (IT) is the single biggest source of collection of the bureau, constituting P784 billion, or 60 percent of the P1.3-trillion collection in 2014.
Food & Agriculture
Agriculture Chief Piñol Proposes P62-B Program To Achieve Rice Sufficiency In Two Years International Business Times PH 7th Jul 2016
Department of Agriculture (DA) Secretary Emmanuel Piñol seeks a P62 billion fund from the national government to reduce rice shortage in the country and attain a 100 percent rice self sufficiency by 2018. “For the next four cropping seasons, I have asked the national government to provide a support fund of P62 billion,” Business World reported Piñol as saying during the rice sector stakeholder’s meeting held at the Southeast Asian Regional Center for Graduate Study and Research in Agriculture. “We project that we will be able to reduce the rice shortage of the country to the point that by the end of 2018 we will be 100% self-sufficient,” Piñol added. Piñol said that the P62 billion proposed budget will fund the improvement of fertilizer, seeds and insurance in the coming four planting seasons stretching from September to April.
Good—NIA, NFA and PCA again under Agriculture Department The Manila Times Online 6th Jul 2016
PRESIDENT Rody Duterte immediately granted the request of Agriculture Secretary Manny Piñol for a presidential executive order placing the National Irrigation Administration (NIA), National Food Authority (NFA), and Philippine Coconut Authority (PCA) back under the Department of Agriculture (DA). The President also gave Piñol control over the Office of the Presidential Assistant for Food Security and Agricultural Modernization (OPAFSAM), which former President B.S. Aquino had created on May 5, 2014. Aquino made the head of OPAFSAM a Cabinet member. Aquino also made it the overseer of the four largest government agencies that used to be under the DA. These are the Fertilizer and Pesticide Authority (FPA), NFA, NIA, and PCA. It was an unwise and a bad management decision of BS Aquino to break up the cluster of offices and agencies under the control of the agriculture secretary. The breakup only exacerbated the lack of concern of Aquino for the agriculture and agrarian sector. A farmer himself, Piñol personally knows what the agriculture sector, and with it, agri-business, needs to become the leading component of the Philippine economy. The most recent data says unemployment has increased by 2 million—to 11 million jobless Filipinos. Most of these are in the rural, the agricultural, areas. Agriculture is where most of our labor force is located because we are still essentially an agricultural country. We are not an industrial economy, and the service sector (BPOs mainly) has unhealthily become the most dominant and productive segment. We must make excellent use of our agriculture resources. The NFA, NIA, FPA and PCA are the most essential agencies that should serve the aims of the agriculture secretary to achieve the principal goal of Duterte for our country to have food security.
Piñol unveils agriculture strategy to achieve food sufficiency The Standard 5th Jul 2016
Agriculture Secretary Emmanuel Piñol on Tuesday unveiled a strategy to boost rice and corn production and achieve food sufficiency. “ There is now a paradigm shift in many of the DA’s programs and priorities,” Piñol said. Piñol said for rice, he designed a program called Rice Productivity Enhancement which would involve a thorough review of the country’s water management and irrigation policies. The program aims to conduct a nationwide soil analysis, improve rice farming technology, introduce high-yielding rice varieties, implement effective soil rehabilitation and fertilizer program and provide modern harvest and post-harvest facilities to minimize losses. Piñol said the department would also focus on producing more white corn for corn-eating provinces. “There must be a viable program to produce more white corn to supply the grains requirements of the corn-eating provinces like Negros Oriental, Siquijor, Bohol, Cebu, Biliran, Leyte, Southern Leyte, the three provinces of Samar and Northern Mindanao,” Piñol said. He said for the livestock and poultry sectors, the country should develop feed components supplies and lessen dependence on imported materials such as soya. “For our fish and marine products sufficiency, the Bureau of Fisheries and Aquatic Resources is now tasked to implement a nationwide program against illegal fishing and a three-month closed season during the spawning period of the distinct fish species in the different parts of the country,” Piñol said. Piñol said the Agriculture Department would also intensify funding and support for the production of high-value fish species such as lapu-lapu and maya-maya. He said for irrigation, the agency would focus more on small and community-based irrigation projects. “There will be a shift in the irrigation mindset,” he said. “The DA will also be introducing solar-powered irrigation facilities, especially in remote villages which are not connected to the grid to provide water not only for the rice fields but also for vegetable gardens and for drinking purposes and most of all, to provide electric power to the community,” Piñol said.
Gov’t plans revolution in agriculture Manila Bulletin 4th Jul 2016
A REVOLUTION in agriculture and massive investments in education and health services are part of the new administration’s economic agenda, Finance Secretary Carlos G. Dominguez III said on Sunday. Dominguez said the economic managers of President Duterte would work to “revolutionize Philippine agriculture to raise rural productivity and also pour massive public investments into human capital to improve the country’s educational system and widen public access to health services.” In a statement on Sunday, he said “[w]e seek to rapidly decentralize our economy, improve the productivity of our agriculture and temper the population growth rate.” “The front-loading of our infrastructure investments intends precisely to achieve the more strategic goals of dispersing economic opportunities, improving our nation’s logistical backbone and meeting the employment needs of our young population,” he said.
Piñol off to Oriental Mindoro to improve local agriculture mb.com.ph 3rd Jul 2016
The province of Oriental Mindoro gets a first crack at the improved delivery of services to the farmers under the Duterte regime as the Department of Agriculture (DA) holds the first “Tapatan: Gobyerno at Masa” on Wednesday. Agriculture Secretary Emmanuel “Manny” Piñol made it clear that his trip to Mindoro which experts said has huge agricultural and fisheries potentials is meant to accord the farmers government assistance that would improve their yield at lower production costs as instructed by President Duterte. He said that trip would mark the delivery of machineries and equipment, including motorized small fishing boats which were requested by fisherfolk during his earlier visit to the island last month. Earlier, Piñol launched his countrywide “Biyaheng Bukid’’ journey leading his way to the two provinces of Mindoro. During the visit, Piñol saw the vast potentials of Mindoro particularly in the rice production citing the adequate water resources coming down from Mount Haton the range separating Occidental from Oriental Mindoro. Being a farmer and newsman by heart, Piñol discovered the difficulty of the farmers in seeking government assistance as it took a while before reaching the desired benefactors. On July 6 after his engagement in Los Baños, Laguna with the rice sector stakeholders, the DA chief will travel to Mindoro through the fast craft from Batangas Port. While in Mindoro, Piñol said he will visit a Mangyan community and listen to the plight of the members of the tribe who have largely been marginalized and neglected.
Biz groups push for veggie, rice farms projects in NIR Sun.Star 1st Jul 2016
BUSINESS groups in Negros Island Region (NIR) are pushing for agricultural projects that will integrate vegetable and rice farming among three local government units (LGUs) in the two Negros provinces. The Metro Bacolod Chamber of Commerce and Industry (MBCCI) and the Negros Oriental Chamber of Commerce and Industry (NOCCI), which are members of the Negros Island Regional Development Council (NIRDC), have developed the idea of creating the San Carlos-Vallehermoso-Canlaon Veggie and Rice Farms Project. The said project was presented and endorsed to NIRDC during its third meeting held in Kabankalan City on Wednesday through the Economic Development Committee (EDC). Based on the committee presentation, the project covers production areas, production system, road network, irrigation system, agricultural practices, marketing through trading post, post harvest facilities, financing and transport equipment. It is designed to improve the quality of produce and productivity of farms, expand production areas, supply inside region and outside region markets, increase the income of farmers, and as a response to soaring food prices, it added.
Soils bureau to inventory spending on irrigation Business World 30th Jun 2016
A farmer prepares rice seedlings for planting. The government is in the process of drawing up a database of financial investment poured into small-scale irrigation projects to facilitate the identification of landholdings suitable for crop production. -- AFP In a statement released by the agency, the Bureau of Soils and Water Management (BSWM) said that the database “shall serve as basis for the government to locate the investments made nationwide, since these irrigation facilities are being provided by the government, most often, without any financial responsibility on the part of farmer beneficiaries.”
P431 billion went to agri under Aquino Manila Bulletin 28th Jun 2016
Some P431 billion went to the agriculture sector from 2011 to 2016 being the primary concern of the Aquino administration over the last six years, the Philippine Agriculture Report Card showed. The report said that in the past six years, the agriculture sector, because of the minimal growth it had been posting every year, “became a primary concern of the national government.” “Case in point, the P431 billion agriculture budget from 2011 to 2016 was P45 billion more than the budget from 1975 to 2010,” it added. According to the report, the budget had helped the sector somehow catch up in the Southeast Asian region even if it seemed like nothing much has improved internally.
Agribusiness will fuel 8% GDP growth – business groups Food Evolution 28th Jun 2016
The significance of agriculture isn’t only about providing food on the table, but also about fueling ambitious GDP growth for the country, business groups said. Business groups spearheaded by the Management Association of the Philippines (MAP), Philippine Chamber of Commerce and Industry (PCCI), and the Philippine Exporters Confederation Inc. (Philexport) said that achieving an eight percent GDP growth for the Philippines is not a problem of if but a question of when it can happen, especially with promising agribusiness projects lined up. “I would think it’s a possibility, especially with the incoming administration’s planned push for agribusiness. In the past, instead of growing, our agribusiness has taken a step back. Given how strong our economy is now and if we put more on agriculture, then eight percent GDP growth is definitely a possibility,” PCCI president George Barcelon said in a report by The Philippine Star. The bold eight percent GDP growth, the report said, may potentially come in the second half of Duterte’s six year term, the groups said. “Agriculture relies in infrastructure such as irrigation, transportation, and farm to market roads. These infrastructures would take time to build so probably we will see such economic growth in about two or three years more,” Barcelon added in the report.
Sugar law in effect as presidential okay expires Business World 27th Jun 2016
President Benigno S. C. Aquino III has allowed a measure exempting raw sugar from value-added taxes (VAT) to lapse into law. Uploaded on the Official Gazette Web site, Republic Act (RA) 10864 or An Act Defining Raw Sugar or Raw Cane Sugar Amending Section 109 (A) and (F) of the National Internal Revenue Code of 1997, As Amended, And For Other Purposes “[lapsed] into law on June 10,2016 [without the] signature of the President, [in] accordance with Article VI Section 27 (1) of the Constitution.” Under the said provision in the 1987 Constitution, a measure lapses into law if not acted upon by the president with his powers to either veto or approve the bill within 30 days.
Organic agri promoted through composting The Manila Times Online 25th Jun 2016
As part of the government’s effort to promote organic agriculture and improve soil quality, the Department of Agriculture’s Bureau of Soils and Water Management (BSWM) delivered a total of 166 Small Scale Composting Facilities (SSCF) worth P50 million to all regions of the country. BSWM Director and National Program Coordinator for Organic Agriculture Dr. Silvino Tejada, who is actively pushing for organic agriculture for the improvement of soil quality and biodiversity, said that they have completed distribution of the SSCF to its identified beneficiaries through the National Organic Agriculture Program (NOAP) in early May year. “To address agricultural issues and major threats in the country that concerns the health of our soils, we have to promptly deliver our services as early as the first quarter of the year to have a strong partnership with farmer groups, state universities and colleges and Local Government Unit to promote organic agriculture,” Tejada said. Organic agriculture is a tool to combat land degradation, boosts the resilience of soil to water stress and nutrient loss. In addition, increased soil organic matter content improves soil structure, reduces soil erosion, provides microbial habitats, and serves as a source of long-term solutions to the health of the soils.
Govt wants more CAR farmers to plant coffee BusinessMirror 10th Jul 2016
THE Department of Trade and Industry (DTI) said it will encourage more farmers in the Cordillera Administrative Region (CAR) to plant coffee by providing more support to the industry. DTI-CAR Director Myrna T. Pablo said the government wants to double the number of coffee farmers in the region to about 6,000, from the current 3,210. “Our target in CAR, in terms of number of farmers is to double that to 6,000, but this will mean adding our plantations to increase production. We also want to grow the number of processors,” Pablo said on the sidelines of a forum held in Baguio City.
CCC, DA team up to achieve food sufficiency amid climate change Philippines Information Agency 10th Jul 2016
MANILA - Top officials of the Climate Change Commission (CCC) and the Department of Agriculture (DA) met to map out plans to help the agriculture sector adapt to the adverse effects of climate change. DA Secretary Emmanuel Piñol sought the assistance of CCC officials led by Secretary Emmanuel De Guzman and Commissioners Frances Veronica Victorio and Noel Gaerlan in launching initiatives aimed at achieving food sufficiency in the face of climate change. During the meeting held on July 5 at the CCC headquarters in Malacañang, Piñol presented various projects that he wants to implement to make the agriculture sector climate change-resilient, which are centered on water conservation and management. These include the Family-Based Agro-Forestry Program, installation of solar-powered irrigation facilities in remote villages, and vegetable production in urban areas under the concept of “Vegetable Gardens in the City.” DA’s projects under Piñol, he said, are likewise in line with the CCC’s campaign for climate justice by promoting convergence of national and local agencies to protect the poorest and most vulnerable sectors including farmers, from climate change. De Guzman said the CCC will help DA with the technical requirements of the projects to access funding from the People’s Survival Fund (PSF) and the Green Climate Fund (GCF).
Philippines: Agricultural smuggling damages local farmers Fresh Plaza 4th Jul 2016
Philippines: On Monday 27 June, Senator Cynthia Villar announced that smugglers are paying cold storage operators to reject local crops, leaving them to rot, while making imported produce, including illegally smuggled produce, fit for sale. Villar, chair of the Senate committee on agriculture, said they had received reports about this nefarious practice that was adversely affecting local farmers and the agriculture sector. She said they found cold stores to be empty although these were declared as full. The senator then called on the Cold Chain Association of the Philippines (CCAP) to police their own ranks. She acknowledged that the concerted efforts of the two industries, agriculture and cold chain companies, result in more business and economic gains.
Digital technology and the new agriculture BusinessMirror 3rd Jul 2016
This 70-ish grandmother and retired school teacher attests that farmers, like his late father, could tell the weather by observing nature. The lack of stars, a moon enveloped by a cloud in the night sky, the blooming of the fire tree—any one of these could mean rain or drought, or a perfect planting day. Until the earth’s climate changed. “Now, it’s difficult to correctly discern when it is time to plant,” Felicidad Antes said. Antes, who resides in Sorsogon province in the Bicol region, said the signs can mislead one these days. Before, when it rained heavily after a long, hot summer, you can take it to mean that summer is over, and that it was time to prepare the land for planting.
DA’s Piñol in initial talks to obtain Japan MAV rice BusinessWorld 3rd Jul 2016
Agriculture Secretary Emmanuel F. Piñol said he has sounded out Japan about providing access to the latter’s stocks of mandatory rice imports, in order to diversify the Philippines’ sources of supply. “I have talked to the Japanese government, to its ambassador, exploring the possibility,” said Mr. Piñol during a news conference on Friday, when he formally assumed his post as Department of Agriculture (DA) secretary. Mr. Piñol said the Japanese are strongly attached to their own domestic varieties of rice, leaving large quantities of imports out of favor with consumers. “You might as well sell to us,” he said he told the Ambassador, referring to Japanese imports.
Piñol wants BSWM to conduct nationwide soil testing this year BusinessMirror 3rd Jul 2016
The new chief of the Department of Agriculture (DA) said the Bureau of Soil and Water Management (BSWM) will be given a budget so it could again conduct soil testing this year. Agriculture Secretary Emmanuel F. Piñol said he has ordered the BSWM to submit a proposal indicating the estimated budget required to conduct soil testing all over the country. “I told the AMIA [Adaptation and Mitigation Initiative in Agriculture] of the DA and BSWM officials to submit to me an estimated budget requirement for the conduct of national soil testing,” Piñol said in a post on his Facebook account.
DA to conduct inventory of small-scale irrigation projects nationwide BusinessMirror 30th Jun 2016
The Bureau of Soils and Water Management (BSWM) said on Thursday it is set to develop a database on all small-scale irrigation projects (SSIPs) established all over the country. The attached agency of the Department of Agriculture (DA) said conducting an inventory of SSIPs nationwide will help the government track these SSIP investments nationwide and help facilitate the identification of landholdings suitable for crop production. BSWM Director Silvino Q. Tejada said the database will be made available to the public to serve as reference material for research studies conducted by academe, the government and other stakeholders.
Abaca output up 11% in January-April BusinessMirror 29th Jun 2016
Despite the onslaught of El Niño, the country’s abaca production expanded by 11 percent to 21,017.2 metric tons (MT) in January to April, according to the latest data from the Philippine Fiber Industry Development Authority (PhilFida). PhilFida Executive Director Clarito M. Barron said El Niño had “no big impact” on abaca production, as the crop is usually grown in hilly and mountainous areas. “According to reports from regional field offices, rice and corn farmers were forced to go up the mountains to harvest abaca. They did this to augment their income,” Barron said.
Reforms in agriculture sector needed to avert food shortage in next 15 years–ECCP BusinessMirror 28th Jun 2016
The European Chamber of Commerce in the Philippines (ECCP) is urging the implementation of reforms in the agricultural sector to stave off possible food shortage in the country. “As an import-dependent country, food security is highly vulnerable to market shocks. Weak policies, an incomplete land reform and trade agreements hamper investing into the market, which would be needed for it to attract investments that will help the agriculture sector to grow,” Henry Schumacher, ECCP senior advocacy adviser, said in a news statement released on Tuesday.
DA to focus on 10 poorest provinces Philstar Global 27th Jun 2016
MANILA, Philippines – The Department of Agriculture (DA) will focus on the country’s 10 poorest provinces as part of president-elect Rodrigo Duterte’s thrust to increase food production and alleviate poverty. Incoming agriculture secretary Emmanuel Piñol said through a strategy called Special Area for Agricultural Development (SAAD), the department would look at the weaknesses of an area, its potentials in food production and livelihood programs. The Philippine Statistics Authority (PSA) has identified the 10 areas with the highest poverty incidence per family. These are Lanao del Sur (67.3 percent), Eastern Samar (55.4), Apayao (54.7), Maguindanao (54.5), Zamboanga del Norte (48), Sarangani (46), North Cotabato (44.8), Negros Oriental (43.9), and Northern and Western Samar (both with 43.5 percent). “A SAAD project management team, composed of technical people from the DA and the province, will be established to identify the problems confronting the area and find solutions,” Piñol said.
World Bank optimistic about Piñol’s agric plans BusinessMirror 27th Jun 2016
The new country director of World Bank is hopeful that the proposed reforms of the new administration for agriculture development would help farmers improve their lives. Joining the two-day Davao Business Forum held here, dubbed as “Sulong Pilipinas,” WB Country Director Mara K. Warwick said the new administration gives her “high hopes” for the improvement of Philippine agriculture and the farmers. “[Incoming Agriculture Secretary Emmanuel F. Piñol] has emphasized the importance of agriculture, support to agribusiness and making sure that the reforms of the new administration would really be able to assist people and improve their livelihood and their lives in general,” Warwick said in a statement.
Banana growers, exporters seek support to maintain global competitiveness BusinessWorld 27th Jun 2016
PBGEA President Alexander N. Valoria said the country is recovering in production but the lengthening dry period every year has been challenging banana stakeholders. “So the name of the game is to have all your security and disciplines in place to be able to maintain that global competitiveness for the country,” Mr. Valoria said. Among the challenges faced by the banana growers is the continuing threat of Fusarium Wilt which is considered a new strain of the Panama disease known as Tropical Race 4 (TR4) and is also a very serious disease in Cavendish banana plantations.
Piñol banking on agriculture to cut poverty BusinessMirror 26th Jun 2016
The next chief of the Department of Agriculture (DA) said over the weekend he will immediately roll out measures to hike farm production and improve food productivity to reduce poverty in rural areas. Incoming Agriculture Secretary Emmanuel F. Piñol said he will designate the 10 poorest provinces in the Philippines as “special areas for agricultural development” (SAAD). To be given the SAAD designation are Lanao del Sur, Eastern Samar, Apayao, Maguindanao, Zamboanga del Norte, Sarangani, North Cotabato, Negros Oriental, Northern Samar and Western Samar.
PRDP to help boost cacao production BusinessWorld 24th Jun 2016
The Philippine Rural Development Project (PRDP) is putting up infrastructure facilities within the next three years to help the city increase its cacao production. Engineer Jose Froilan T. Rigor of the city’s Intensified Building-Up of Infrastructure and Logistics for Development said the strategy is to put up key infrastructure in areas with higher production. “We will link these areas with the big markets in the city and in other nearby commercial centers,” Mr.Rigor said as he briefed the team of Mara K. Warwick, the World Bank’s new country director for the Philippines.
PH achieves ‘historic best’ in farm output Inquirer.net 24th Jun 2016
When the Aquino administration assumed office in 2010, government officials said the agriculture sector registered low productivity after years of over-importation of rice, farmers continued to get low returns for their labors, and farm infrastructure was in poor condition and not built to face the challenges of climate change. Six years later, the Department of Agriculture claims to have achieved the country’s “historic best” in farm production, particularly for staple grains rice and corn. Data from the DA show that palay output exceeded 18 million tons yearly from 2012 to 2015, even during the worst of what was considered as one of the three strongest occurrences on record of the El Niño phenomenon. Agriculture Secretary Proceso J. Alcala declares that, although the country failed to achieve self-sufficiency in rice, the Philippines is now producing 97 percent of the country’s requirement. He says this is significantly better than the 81 percent self-sufficiency rate in 2010.
Health & Life Sciences
Duterte economic team to push for reproductive health program Business World 28th Jun 2016
During the Business Consultation held in the city last week, Incoming Finance Secretary Carlos G. Dominguez said the Duterte administration’s 10-point socio-economic agenda includes the implementation of a Reproductive Health program to address the country’s poverty woes. For his part, Ernesto dM. Pernia, incoming director general of the National and Economic Development Authority, said, “Implementing the RH Law will make a lot of difference in reducing poverty.” He said a simulation dividing couples into groups shows that the poorest couples were those not able to achieve the desired family size of up to three children since they have up to six children in reality. Mr. Pernia said the poverty rate would have gone down to 20% from 26% if the poorest were able to achieve the ideal family size, which is why the RH Law is part of the 10-point agenda.
Smoke-free Philippines possible under Duterte admin, says group Sun.Star 26th Jun 2016
THE New Vois Association of the Philippines (NVAP) on Saturday said the distinct track record of President-elect Rodrigo Duterte in curbing smoking in Davao City during his term as mayor is already enough to give them confidence in seeing a smoke-free Philippines soon. In a statement, NVAP said they expect Duterte to be unwavering in his desire to implement a no smoking policy all over the Philippines just like what he did when he was Davao City mayor. “We are confident that incoming President Duterte will carry out his earlier declaration of imposing a nationwide smoking ban. There is no doubt on his political will as he has already shown this in making Davao City smoke-free since 2002,” said NVAP President Emer Rojas. It should be noted that Davao City had been hailed by the World Health Organization for its smoke-free policy since 2002, which is the first in the Philippines.
Incoming DOH chief eyes increased heath spending GMA News Online 23rd Jun 2016
The incoming Health secretary on Thursday said the agency will be pushing for higher health spending in order to better cater to the needs of the Filipino people. In an interview on GMA News TV's News To Go, incoming DOH Secretary Dr. Paulyn Ubial said she would use her expertise as a public health offical in prioritizing primary health care. “Before, the focus were the hospitals. But because I’m a public health official, I will prioritize primary care, preventive, promotive services. Ang dictum nga natin, ‘prevention is better than cure’,” Ubial said. In order for the incoming DOH leadership to really focus to the poorest of the Filipinos, Ubial said there should be an increased portion for health spending in the country’s gross domestic product (GDP). “In the past several years, our health expenditure which is a portion of GDP has increased. It was about 2.2 percent during the early part of 2000. Now it is about 4.5 percent of the GDP,” she claimed. The World Health Organization recommended that each country provide at least 5 percent of its GDP for health spending.
ICT
Internet of Things ushers precision farming Inquirer 6th Jul 2016
Who says agriculture is a low-tech enterprise? Not conglomerate Calata Corp., which has partnered with Austrian firm Pessl Instruments GmbH to sow the seed of the cutting-edge Internet of Things (IoT) in Philippine farming. The partners will invest in an instrument that provides very localized weather forecasting, the iMetos weather station. This means precision forecasting, unlike the weather information provided by news reports. The project aims to provide Filipino farmers intelligence-based farming to improve decision-making across the entire supply chain by providing real-time field data. The partners call this “agricultural IoT.”
DICT will spur IT initiatives in the Philippines MIS Asia 4th Jul 2016
It will also help the Philippines pick up with other countries on ICT initiatives. The creation of the Department of Information and Communications Technology (DICT) will boost the IT initiatives in the Philippines and help the country pick up with other nations when it comes to tech projects. "With ICT now having the authority at the department level, the country's push to catch up will be much stronger," said Department of Science and Technology- Information and Communications Technology Office (DOST-ICTO) Undersecretary Louis Napoleon Casambre in a Philippine Star's report during the Innovative Strategies for Development Summit (ISDS) 2016.
PLDT, Globe welcome Duterte’s move to cut red tape Philstar 3rd Jul 2016
Telco players PLDT Inc. and Globe Telecom Inc. welcome the new administration’s commitment to improve the business environment by cutting red tape as this would enable them to deliver improved internet services. “At this point, the specifics of this major initiative have still to be worked out. But we are hopeful that this will help us expedite our network rollout by simplifying and facilitating the issuance of permits and clearances,” Ramon Isberto, PLDT and Smart Communications Inc. public affairs head, said in a text message. He said the simplified issuance of permits and clearances for deployment of the necessary infrastructure would be a win-win situation because faster rollout means communities and businesses would benefit faster from improved connectivity.
Infra backlog pulls down PHL in global Internet speed rank BusinessMirror 4th Jul 2016
While the average Internet speed in the Philippines improved by almost a quarter in the first three months of 2016, the backlog in infrastructure still pulled down its global ranking by nine notches. The only way, then, for the Philippines to be on a par with its peers—at least in the Asean—is for both the government and telecommunications sector players to invest in adequate telco infrastructure vis-a-vis an opening up of the market to new carriers, an expert said. Data from Akamai Technologies showed Filipinos enjoyed an average speed of 3.5 megabytes per second (Mbps) in the first quarter of 2016.
Cloud computing can help 1M MSMEs compete effectively with large companies BusinessMirror 29th Jun 2016
Cloud computing—or the practice of data management through the Internet—will enable the over 1 million micro, small and medium enterprises (MSMEs) in the Philippines to level the playing field with large corporations. In order to flourish in a highly competitive market, these enterprises need to realize cloud computing is the way to go, since demand for digital services grows at a continuous pace, IP Converge Data Services Inc. (IPC) Director Niño R. Valmonte said in a briefing on Wednesday. “We call the cloud the great equalizer because the start-ups and small businesses will now be able to use or take advantage of solutions that large companies would be able to use, as well,” Valmonte said.
IBPAP crafting new 6-year industry road map Business World 26th Jun 2016
The Information and Technology and Business Process Association of the Philippines (IBPAP) is crafting a new six-year road map aimed at sustaining the industry’s strong growth through 2022. Benedict C. Hernandez, chairman of the executive committee of the IBPAP, said the new road map will be launched at the industry’s annual conference in October. “We’re going to unveil the actual new road map that contains what’s the game plan for the Philippine IT-BPO (industry) for the next six years. How do we deliver? How do we differentiate? Which investments do we need to get in? What recommendations do we take to secure another six years or more of success,” he told reporters at the sidelines of the opening of the Affinion Group’s first office in Bonifacio Global City last Thursday.
Bangko Sentral approves 81 new bank branches The Standard 26th Jun 2016
Bangko Sentral ng Pilipinas approved 81 applications for new bank offices in the first quarter, as the industry continues to expand coverage to seize growth opportunities in unserved areas. Universal and commercial banks accounted for the bulk of the applications in the first three months with 47, followed by rural banks and cooperative banks with 18 and thrift banks with 16.
Duterte appoints secretary for new tech department GovInsider 23rd Jun 2016
Philippine President-elect Rodrigo Duterte has appointed Rodolfo Salalima as secretary for the newly formed Department of Information and Communications Technology (DICT). Salalima was previously the Chief Legal Counsel and Senior Advisor for Globe Telecom, serving as a consultant to the firm. He was also the Duterte’s law school classmate at San Beda College. Salalima is experienced in the ICT industry, fulfilling the requirement that DICT officials need at least seven years of experience in the industry. He currently serves as the President of the Philippine Chamber of Telecommunications Operator; and Board Director of the Telecoms Infrastructure Corporation of the Philippines. He started off his career in the industry in the Radio Communications of the Philippines and continued to International Communications Corporation (since renamed Bayantel) in high-ranking positions. The new department will draft and implement ICT policies, overseeing broad developments in the country. It will roll out free internet in government and public spaces, according to the Unbox tech review website. DICT will also collaborate with the Department of Education, the Commission on Higher Education and the Technical Education and Skills Development Authority to teach ICT skills in schools.
Infrastructure
New DOTC head promises sweeping changes Inquirer 4th Jul 2016
There will be no honeymoon phase, at least for employees and managers in the Department of Transportation and Communication (DOTC) under the Duterte administration. The massive agency is poised to launch sweeping changes in its first 100 days in a bid to improve public services and restore a reputation perceived to have grown more tarnished in the last six years with worsening traffic and a steadily deteriorating mass transit system in Metro Manila. Transportation Secretary Arthur Tugade, who established a successful logistics business before being tapped to the head the state-run Clark Development Corp. under President Aquino, said on his first press conference Friday as head of the department that he was ready to implement difficult reforms in the months and years ahead.
DPWH works on Cagayan, Tagoloan, Imus rivers to prevent flooding Rappler 11th Jul 2016
MANILA, Philippines – The Department of Public Works and Highways (DPWH) has started flood control work on “critical portions” of 3 major rivers across the country. The P356-million worth flood-risk management project involves “full-scale improvement works” on: These priority areas were identified by the Japan International Cooperation Agency in two studies, DPWH project office director Patrick Gatan said in a statement on Monday, July 11.
Govt reviews airport projects The Standard 10th Jul 2016
The Transportation Department said it is reviewing the P108.2-billion regional airports project under the previous administration’s public-private partnership program. “As the new team, we are just getting up to speed with the review of projects,” said Transportation Undersecretary for aviation and airports Roberto Lim. “But the overall goal is to provide the infrastructure that will allow the Philippines to absorb more traffic, support this successful tourism program of the Philippines,” Lim said over the weekend. The agency pre-qualified Maya Consortium led by Aboitiz Equity Ventures, Philippine Airports Consortium of Metro Pacific Investments Corp., San Miguel Holdings Corp.-IIAC Airport Consortium, GMR-Megawide Consortium and Filinvest-JATCO-Sojitz Consortium for the project. The five provincial airports in the PPP bundle are the P20.26-billion Bacolod-Silay International Airport and the P30.4-billion Iloilo International Airport under package 1, and the P14.62-billion Laguindingan Airport, P2.34-billion New Bohol (Panglao) Airport and P40.57-billion Davao International Airport under package 2.
2-year emergency powers for transport reform urged Manila Bulletin 10th Jul 2016
Sen. Joseph Victor Ejercito pressed yesterday for an immediate reform of the country’s transportation sector through a bill granting President Duterte special powers for two years. The bill for the Transportation Crisis Act of 2016, provides for measures to enable the President to address the worsening traffic especially in Metro Manila, develop a modern integrated railway system, and improve air transportation and infrastructure. “To aid President Duterte in addressing the transportation and traffic crisis, I suggest that he designate and appoint a transport manager. This person may concurrently be the secretary of the Department of Transportation (DOT) or his designated representative,” Ejercito said. The transport manager should be given the power to override the Metropolitan Manila Development Authority (MMDA); the Metro Manila Council; local governments, traffic, and related ordinances, and regulations on permits, and licenses, among others, he added. The transport manager, however, should periodically coordinate with local government executives and their officials, and the private sector, he said. Senator Ejercito said the proposed Transportation Crisis Act would reform the country’s transportation sector through a comprehensive roadmap covering air, land, and sea mass transportation.
ADB backing Duterte infrastructure projects The Standard 8th Jul 2016
The Asian Development Bank on Friday expressed support to the infrastructure projects that the administration of President Rodrigo Duterte plans to build. ADB president Takehiko Nakao met with two of Duterte’s economic managers—Finance Secretary Carlos Dominguez III and Economic Planning Secretary Ernesto Pernia—to express support for the administration’s 10-point economic agenda, particularly infrastructure development. Nakao said aside from support in accelerating infrastructure development with special attention to the role of public-private partnerships, ADB would also assist in rural and value chain development in agriculture; improving human capital investment including health and education; and social protection through conditional cash transfer. Nakao said ADB could help the country implement innovations in infrastructure development, based on the bank’s extensive experience and access to global knowledge and advanced technologies.
Infra bond offerings beyond PPP eyed BusinessWorld 8th Jul 2016
Securities and Exchange Commission (SEC) Chairperson Teresita J. Herbosa and BDO Capital Investment Corp. President Eduardo V. Francisco separately floated the possibility of “project bonds” in addition to allowing companies with PPP infrastructure contracts to join the Philippine Stock Exchange (PSE). “In addition to what you would call PPP bond issuances, we’re also thinking of project bonds... we’re conducting a study on that,” Ms. Herbosa told BusinessWorld after the ceremonial listing of P10 billion worth of bonds issued by Ayala Corp. on the Philippine Dealing & Exchange (PDEx) in Makati City on Thursday. oing studies.
New PPP deals eyed by Duterte team CNN Philippines 7th Jul 2016
Metro Manila — The Duterte administration could yet add its own public-private partnership (PPP) projects to the pipeline of the 17 deals it plans to roll out this year and next. PPP Center Executive Director Andre Palacios confirmed this. Based on their transition talks, he said the new economic managers were keen not just to continue with the current lineup of PPP deals, but also to build upon it. "Some projects that they're interested in are projects in the region. We've noted that most of the projects are in Metro Manila," he told CNN Philippines. The PPP pipeline already includes regional infrastructure projects: the operations, maintenance and development of the Panglao Airport, Laguindingan Airport, Bacolod Airport, Iloilo Airport and Davao Airport; as well as the modernisation of the Davao Sasa Port. However, out of a total of 53 PPP projects, the regional ones are easily outnumbered by those focused on the Greater Manila Area. Economic managers will meet again after the State of the Nation Address in late July to discuss the PPP program. Sitting as the National Economic and Development Authority (NEDA) Board, they have the final say on all major infrastructure projects undertaken by the government. Five PPP deals will be up for NEDA Board review: the Ninoy Aquino International Airport Development, the Plaridel Bypass Toll Road, the Batangas-Manila Natural Gas Pipeline, the Philippine Travel Center Complex and the New Nayong Pilipino at Entertainment City. Together, they are worth about ₱100 billion.
Common station’ compromise kept BusinessWorld 6th Jul 2016
Asked on the newly installed government’s stand on building a common station that will link the Metro Rail Transit (MRT) line 3, Light Rail Transit line 1 and the planned MRT-7, National Economic and Development Authority Director-General Ernesto M. Pernia said it will likely keep the plan to build two stations: one in front of SM City North EDSA mall and the other in front of TriNoma mall. “I think the decision is to have two separate ones,” Mr. Pernia told reporters on the sidelines of a press briefing of the Development Budget Coordination Committee last Tuesday.
Duterte admin eyes 24/7 work on infra projects Inquirer.net 5th Jul 2016
President Rodrigo R. Duterte has given his go-ahead to implement economic managers’ plan to do 24/7 work on infrastructure projects, alongside a faster rollout of public-private partnership (PPP) projects. Budget Secretary Benjamin E. Diokno told reporters Tuesday they already brought to the President’s attention the proposal to do nonstop work on vital infrastructure in and out of Metro Manila. “It’s okay with him [Duterte],” Diokno said. The Budget chief said the government loses P2.3 billion a day to delayed implementation of infrastructure projects. The government plans to raise to 5.2 percent of the gross domestic product (GDP) its expenditures on infrastructure by next year, as Diokno lamented that the sector has been neglected in the past. Diokno said “all major projects” amounting over P10 million would be included among those to be worked on 24/7. The Budget chief admitted that working on infrastructure projects nonstop would initially be costly but he pointed out that there are already advanced technologies that can be tapped to lessen the hassles to be caused to the public, citing for instance a technology that reduces noise.
Infra projects may take time to evaluate—Pernia BusinessMirror 4th Jul 2016
The National Economic and Development Authority (Neda) said reducing the time needed to approve and implement projects by half can significantly contribute to the Duterte administration’s goal of cutting red tape. Socioeconomic Planning Secretary and NEDA Director General Ernesto M. Pernia told reporters on Monday, however, the reduction in the time needed to evaluate and implement projects must be done without compromising the quality of these undertakings.
Tugade sees MRT 3 maintenance top priority BusinessMirror 4th Jul 2016
The previous government failed in its attempt to buy out the corporate owner of the Metro Rail Transit (MRT) Line 3, but the current administration will still consider the prospect if this, indeed, leads to better services in the long run. Transportation Secretary Arthur P. Tugade said the government will keep a keen eye on the P54-billion buyout plan, but such a prospect will have to wait, as top in the priority list involves the improved maintenance of the train line. “The issue of ownership and equity is being seriously studied right now. Whether it will be good for government to buy into equity or simply return the operation or infrastructure, we are studying it. What is critical right now is the maintenance,” he said on Monday.
Expect huge infra spending, tax reform – Dominguez Rappler 4th Jul 2016
'We intend to take the traffic crisis by the horns not only because of the grave economic costs of congestion, but also because of its adverse effects on the health and quality of life of our labor,' the finance chief says Finance Secretary Carlos Dominguez IIIhas a message to almost 200 countries' leaders: Expect huge infrastructure spending through an improved public-private partnership (PPP) thrust and comprehensive tax reform. Dominguez said in a business forum that the new government will carry out initiatives ranging from infrastructure buildup and tax reform to easing traffic congestion.
Local executives express support for Clark, Naia dual-airport plan BusinessMirror 3rd Jul 2016
CLARK FREEPORT—Various leaders here welcomed the immediate plan to develop the Clark International Airport (CIA) along with the Ninoy Aquino International Airport (Naia) for a dual-airport system. Transportation Secretary Arthur P. Tugade recently said the CIA and the Naia could coexist and must be improved and developed together. “The Naia must be improved along with Clark. The remedy for Clark and the Naia is they can coexist and, therefore, they must be improved and developed,” Tugade said.
Tugade’s ‘progressive transport agenda’ too expensive for jeepney drivers–group BusinessMirror 3rd Jul 2016
WHILE the government is pushing for the modernization of the transportation sector according to its own plans, an organization of public-utility jeepney operators and drivers is calling on the administration to consider its “progressive transport agenda.” In an interview with the BusinessMirror, Pagkakaisa ng mga Samahan ng Tsuper at Opereytor Nationwide (Piston) President George F. San Mateo said his group will soon submit a seven-page agenda to Transport Secretary Arthur P. Tugade in response to his call for the phaseout of decades-old jeepneys.
PSE to finalize listing rules for PPP firms Business World Online 3rd Jul 2016
THE PHILIPPINE Stock Exchange, Inc. (PSE) is looking to finalize the listing rules for entities engaged in public-private partnership (PPP) projects before the yearend, an official from the local bourse said, with final approval from the Securities and Exchange Commission (SEC) expected within the quarter. The local bourse has completed gathering comments from the public, which raised questions about the minimum 15-year remaining life required of the PPP contracts bagged by companies seeking to list on the PSE. The PSE released the proposed supplemental listing and disclosure rules applicable to the private sector proponents of PPP infrastructure projects on May 31 for public comment. Based on the draft rules, a company undertaking an infrastructure project under a PPP contract worth P5 billion and above can list on the PSE. However, it must already have commenced commercial operations or completed construction or a phase at the time of listing.The government has lined up 53 PPP projects, mostly involving public infrastructure, under the administration of President Benigno S. C. Aquino III. Of these, 12 contracts cumulatively worth P217.4 billion have been awarded. The administration of President Rodrigo R. Duterte has expressed intentions to continue the PPP program, as part of efforts to tackle the country’s public infrastructure backlog.
Philippine Airlines: Fixing Congested Airports Should Be Top Priority ~ Philippine Flight Network Philippine Flight Network 3rd Jul 2016
Currently, the Philippines has sixteen international airports, excluding domestic gateways. However, most of these are congested, stated Bautista. "For example, our Ninoy Aquino International Airport is congested," said Bautista. "We can only have 40 movements per hour. Sometimes, movements per hour exceed 40 so we can't grow the market. We hope we can have better airports and more aviation-related infrastructure." The Philippine Airlines Chief Executive added that cramped airports prevent local airlines from tapping into rising demand for flights. In addition, it may undermine the success of the Association of Southeast Asian Nations Open Skies agreement. The agreement enables broader flight options within the region. When Bautista meets Duterte, he intends to highlight the need to improve Ninoy Aquino International Airport in Manila, Davao Airport, and Clark Airport. The country's primary international gateway in Manila is plagued by capacity issues, where it currently serves more than 34 million passengers annually although it was only designed to handle 28 million.
Dominguez planning review of PPP program BusinessWorld 3rd Jul 2016
The Administration of President Rodrigo R. Duterte will be more open to unsolicited proposals for public-private partnerships (PPP), according to Finance Secretary Carlos G. Dominguez who bared plans for a review of the program. A DoF statement released on Sunday said the government would be open to unsolicited proposals and ideas from the private sector “to better stimulate the economy and further create jobs, especially for young Filipinos.”
PPP Center chief wants Duterte to focus on nine pending deals BusinessMirror 29th Jun 2016
With the infrastructure gap that the Philippines is facing today, the outgoing chief of the government’s main infrastructure development body hopes that the team of President-elect Rodrigo R. Duterte will put prime importance to the deals that were not concluded during his term. Andre C. Palacios, the executive director of the Public-Private Partnership (PPP) Center, said there are nine infrastructure deals—eight of which are from the transport department—that are currently in limbo. “Our hope is that the projects that are very close to bidding can actually be brought to completion. Further postponement will only result in delays of delivery of service,” he told the BusinessMirror. “If we go back to square one, we will easily lose a year, and people need infrastructure.”
Metro streets need remodeling–Palafox BusinessMirror 28th Jun 2016
A remodeling of Metro Manila’s streets and development of new growth areas through the grant of incentives to investors could be the best routes to take in solving the chronic state of traffic congestion that Metro Manila has been experiencing, experts said. Architect and Urban Planner Felino A. Palafox Jr. believes that Metro Manila’s streets are too congested that the only way to ease the flow of goods and services is to remodel them. He explained that there is a “bias for automobiles” in the city that pedestrians are the ones given lesser priority when it comes to access to roads.
Congestion won’t derail PHL aviation growth–expert BusinessMirror 27th Jun 2016
Commercial aviation in the Philippines, generating hundreds of billions of pesos a year from foreign travelers alone, was seen to persist on a growth path over the next three years, no matter persistent congestion at the nation’s main international gateway, a well-regarded industry expert said on Monday. Avelino L. Zapanta, an expert in the civil aviation industry, said air hubs in other key cities in the Philippines should see higher passenger volumes this year due to the integration of countries under the Asean into a single economic bloc, paving way for the so-called Asean Single Aviation Market (Asam).
New administration to review P3-trillion infrastructure plan BusinessMirror 27th Jun 2016
The fate of the three-year rolling infrastructure plan (TRIP) hangs in the balance, as the Duterte administration is keen on reviewing the plan before it is implemented. The National Economic and Development Authority (Neda) said the TRIP is the modified version of the Comprehensive and Integrated Infrastructure Program (CIIP). The CIIP is a consolidated list of all infrastructure programs of the government.
Business leader calls for Mindanao railway BusinessWorld 27th Jun 2016
The local business sector in this region sees the transformation of the island of Mindanao once the long overdue Mindanao Railway System project is realized. Pedro Rufo N. Soliven, governor for Western Mindanao of the Philippine Chamber of Commerce and Industry Foundation, Inc., said the realization of the Mindanao Railway System project will provide more access to local products among people in different parts of Mindanao. “The project will definitely boost economic activities thru interconnectivity and accessibility of products and people of Mindanao,” Mr. Soliven said in an interview.
Alvarez wants DPWH to drop construction of highways The Philippine Star 27th Jun 2016
Change may be coming to the Department of Public Works and Highways (DPWH): specifically, the removal of the letter H and its transfer to the Department of Transportation (DOT). So said Davao del Norte representative-elect Pantaleon Alvarez, president-elect Rodrigo Duterte’s choice for speaker of the House of Representatives in the 17th Congress.
The future of PPPs is written on the wall BusinessMirror 26th Jun 2016
IS public-private partnership (PPP) the only solution to the infrastructure deficit? Is PPP truly a priority program of the incoming Duterte administration? What is its relevance and importance in achieving the 10-point socioeconomic agenda? Is there a future for the PPPCenter? What could be the role of the PPP Center moving forward? From all indications, PPP will be a priority program and a key change strategy of the incoming administration. Recent events will show that President-elect Rodrigo R. Duterte is not just paying lip service.
Aquino has P1.5-trillion PPPs ‘gift-wrapped’ for Duterte BusinessMirror 23rd Jun 2016
The Aquino administration has “gift-wrapped” a pipeline of infrastructure deals worth P1.5 trillion to the team of President-elect Rodrigo R. Duterte, topped with recommendations on how the new government will be able to speed up their implementation.Delighted to hear that the next administration has included infrastructure development on its 10-point economic agenda, Public-Private Partnership (PPP) Center Executive Director Andre C. Palacios expressed his confidence that Duterte’s economic team will further drive growth to the program. “We have gift-wrapped for the new team a pipeline of 53 projects worth P1.5 trillion. These projects are inter-generational endeavors, with 20-year and 30-year contracts spanning several presidencies. We are confident the new team will turn over a bigger, longer pipeline to the next team in 2022,” Palacios told the BusinessMirror.
Legislation
Charter change, 5 other bills top House agenda Inquirer 7th Jul 2016
Administration allies led by presumptive Speaker Pantaleon Alvarez have identified the “first six” bills covering charter change, juvenile law to drunk driving that President Duterte wants approved in the first year of the 17th Congress. Ilocos Norte Rep. Rodolfo Fariñas, who is expected to be elected majority leader once Congress convenes on July 25, said these were the legislative measures that Duterte spelled out as his top priorities during their meeting in Davao City last June 7. On top of Duterte’s wish list is House Resolution seeking the creation of a constitutional convention to amend the 1987 Constitution, specifically to shift to a parliamentary form of government.
Aquino signs NBI modernization, 3 other laws Manila Bulletin 27th Jun 2016
In his final days in office, President Aquino signed four new laws, including measures aimed at modernizing the National Bureau of Investigation (NBI) as well as improving the welfare of Filipino centenarians. The new laws are Republic Act No. 10868 or the Centenarians Act of 2016, RA 10867 or the NBI Reorganization and Modernization Act, RA 10866 or Batanes Responsible Tourism Act, and RA 10865 or Mayor Hilarion A. Ramiro Sr. Medical Center Act, according to Presidential Communications Operations Secretary Herminio Coloma Jr. Coloma explained that the President approved the law granting incentives to centenarians since the questionable provision has already been removed.
‘Exclude state execs, workers from bank secrecy protection’ The Philippine Star 7th Jul 2016
Government officials and employees should be removed from bank secrecy protection to make efforts to uncover ill-gotten wealth easier, Sen. Panfilo Lacson said in filing a bill seeking to amend the Bank Secrecy Act. Lacson’s Senate Bill 47 effectively removes from all public servants – from the president down to the lowest ranking employee – the “protection” afforded by Republic Act 1405, which prohibits disclosure or inquiry into bank deposits.
Incoming House speaker files bill on death penalty BusinessWorld 6th Jul 2016
Davao del Norte Rep. Pantaleon D. Alvarez, the incoming House speaker, has also filed a bill reverting the minimum age for criminal offenses from 15 to nine years old. Mr. Alvarez filed House Bill (HB) No. 01 which seeks to impose the death penalty on certain heinous crimes, and HB No. 002, proposing to amend a 2006 law that set the minimum age for criminal offense at 15. Both bills were filed on June 30 at 12:01 p.m., a minute after Mr. Duterte assumed the presidency in a formal inauguration.
Drilon wants to review Constitution via Con-con BusinessMirror 3rd Jul 2016
Senate President Franklin M. Drilon has filed a resolution calling for a constitutional convention, or Con-con, to review the 1987 Constitution. “There is a need to reexamine the Constitution to determine if it is still attuned or responsive to the demands of present-day realities,” Drilon said in a statement.Drilon said the Resolution of Both Houses (RBH) 1 calls for a convention, whose members shall be elected by January of next year, to propose amendments to, or revision of, the 29-year-old Constitution.
Overview of changes under the Customs Modernization and Tariff Act BusinessWorld 3rd Jul 2016
In addition to the above, the CMTA also provides the following changes: In last week’s article, we listed down some of the changes introduced under the new Customs Modernization and Tariff Act (CMTA), particularly on the new rules relating to abandonment, period of storage in a Customs Bonded Warehouse, advance customs rulings, post clearance audit, record keeping requirements and penalties. The CMTA states that the Bureau of Customs (BoC) may conduct a “post-clearance audit” within three years from the date of final payment of duties and taxes or customs clearance, as the case may be. In the absence of any specific regulation, this provision of the CMTA can be seen as a departure from Executive Order 155 (which placed the audit function with the Department of Finance’s (DoF) Fiscal Intelligence Unit) as well as the audit guidelines under DoF Department Order (DO) Nos. 11-2014 and 44-2014.
Lawmakers bare agenda under Duterte presidency BusinessMirror 30th Jun 2016
Aj agenda addressing political-economic concerns were bared by the respective Houses of Congress, as Rodrigo R. Duterte formally assumed office as the 16th president of the Philippines. As members of the 17th Congress officially assume office, bills adjusting individual income-tax brackets to inflation, reviving death penalty and resolutions calling for a Constitutional Convention (Con-con) and Constitutional Assembly (Con-ass) to amend the 1987 Constitution were among the top bills filed at the House of Representatives on Thursday. On the other hand, incoming Senate President Aquilino Pimentel III confirms that the 17th Congress is expected to fast track passage of enabling laws that will pave the way for quick implementation of economic reforms envisioned by the Duterte administration soon after lawmakers formally convene on July 25.
Emergency contracts under Rody face scrutiny The Philippine Star 27th Jun 2016
Congress should scrutinize all contracts for transportation and traffic-related projects to be negotiated by the Duterte administration in case it is given emergency powers to solve the traffic crisis, Speaker Feliciano Belmonte Jr. said yesterday. “We always want the best deal for the government and a strong congressional oversight is needed for this,” he said. Belmonte said he supports the proposal to give the incoming president emergency powers to untangle the traffic mess, but such authority “should have a duration.”
SB vows to push passage of land use bill The Philippine Star 24th Jun 2016
MANILA, Philippines - Speaker Feliciano Belmonte Jr. has vowed to work for the approval of a bill seeking to lay down a clear policy on land use to include classification to attract more investments and improve productivity.He and other authors said they would refile the proposed National Land Use and Management Act that the House of Representatives had approved in 2014 but was not acted upon in the Senate. Re-elected co-authors of the bill include Reps. Bellaflor Angara-Castillo, Gloria Macapagal-Arroyo, Winston Castelo, Rodolfo Biazon and Kaka Bag-ao, chairman of the special committee on land use in the 16th Congress
40 neophyte lawmakers take course on legislation Manila Bulletin 24th Jun 2016
Some 40 neophyte lawmakers are prepared to pass legislative measures that would improve the socio-economic conditions of their constituents and protect human rights after completing yesterday the four-day Executive Course on Legislation. Actor-turned-Manila Representative-elect John Marvin “Yul Servo” Nieto, one of the “graduates”, vowed to familiarize himself with the lawmaking process and pursue the passage of measures that would benefit the poor. “I will work hard and push for the approval of the measures (ordinances) which I filed as a city councilor of Manila,” he told reporters.
Manufacturing
Manufacturing grew 7.3% annually in past 5 years Inquirer 7th Jul 2016
The Philippine manufacturing sector can sustain its strong growth and significant contribution to the local economy should the new administration undertake critical measures aimed at attracting more investments and strengthening local capabilities. So far, the local manufacturing sector has added P738 billion in gross value added (GVA) over the past five years to reach P2.7 trillion GVA at current prices as of end-2015. GVA is a measure of the value of goods and services produced in an area, industry or a sector of an economy.
Lawmaker wants to look into govt’s P27-billion program for carmakers BusinessMirror 26th Jun 2016
Lawmaker wants to look into the implementation of the government’s P27-billion stimulus program for local carmakers when the 17th Congress starts session next month. Reelected Rep. Winston T. Castelo of the Second District of Quezon City said he would seek an inquiry to determine how the Comprehensive Automotive Resurgence Strategy (CARS) Program is being implemented by the government. Castelo is the chairman of the House Committee on Metro Manila Development during the 16th Congress. “Congress should look into the matter. As far as I know, [all the tax exemption and incentive] should have consent from Congress or approval from Congress,” Castelo told the BusinessMirror.
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