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Regional Affairs
US firms in PHL “most optimistic” in ASEAN — survey Manila Bulletin 7th Sep 2016
The ASEAN Business Outlook Survey (ABOS) 2017 reported that United States companies based in the Philippines are the “most optimistic” in terms of overall investment environment among Southeast Asian nations. About 77 percent of US firms in the Philippines said the investment environment in the country is improving, higher than ASEAN’s figure of 45 percent. The country’s figure exceeded optimism of US businesses in Vietnam with 72 percent recognized improvement in investment climate; Myanmar with 70 percent; Cambodia, 69 percent; Laos, 58 percent; Indonesia, 35 percent; Singapore, 31 percent; Malaysia, 23 percent; Thailand, 22 percent; and Brunei Darussalam, 16 percent. Majority of US companies with presence in the Philippines have forecasted their profit here to increase next year.
Philippines ranks 5th in Asean for US firms’ expansion PhilStar 6th Sep 2016
MANILA, Philippines - US companies remain optimistic about business prospects in the Association of Southeast Asian Nations (ASEAN), with the Philippines their fifth most preferred destination for business expansion in the region this year. The annual ASEAN Business Outlook Survey released by the US Chamber of Commerce and the American Chamber of Commerce in Singapore showed 27 percent of senior executives representing US companies in all 10 ASEAN countries cited the country as a priority market for future business expansion. Respondents across the region saw Vietnam (40 percent), Indonesia (38 percent), Myanmar (34 percent), and Thailand (30 percent) the priority markets for expansion. Philippines and Malaysia each got 27 percent of the US executives’ vote. Compared with last year’s outcome, the Philippines saw one of the biggest gains in business expansion interest from 20 percent to 27 percent.
Beijing offers Manila financial, economic aid Business World 6th Sep 2016
CHINA has offered to assist the Philippines in project financing and tourism development, the Department of Finance (DoF) said, even as the two nations still wrangle over territory in the South China Sea. Finance Secretary Carlos G. Dominguez III said Chinese Ambassador to Manila Zhao Jianhua, during the latter’s courtesy call on the Philippine official, has committed to assist the country in the areas of infrastructure development, tourism, customs management, agricultural and currency swap deals, as Manila and Beijing bolster economic diplomacy under the new government.
Duterte in Laos, seeks Asean unity vs terror, drugs The Philippine Star 6th Sep 2016
President Duterte will seek the support of members of the Association of Southeast Asian Nations (ASEAN) in the global fight against illegal drugs and terrorism. “Recent events have shown that there are elements out there who seek to sow terror and wreak havoc in our society and the Philippines would remain firm in our resolve to combat terrorism,” he said in his pre-departure speech before flying to Laos. Duterte left for Vientiane, Laos at around 4:30 p.m. yesterday to attend the 49th ASEAN Leaders Summit, where he will formally receive the chairmanship of the ASEAN, which celebrates its 50th anniversary next year.
Duterte flies to Laos to attend ASEAN Leader's Summit Business Mirror 4th Sep 2016
DESPITE the deadly bombing in Davao on Friday, President Duterte will not change his schedule and will proceed with his trip to Lao PDR today, Sept 4 for the Association of Southeast Asian Nations (Asean) Leaders’ Summit.While in Laos, Mr. Duterte is scheduled to meet with nine heads of state, although the final list of heads of state that he would meet has yet to be released. Earlier, President Duterte said he would hold bilateral meetings with the leaders of China, the United States and Russia at the sidelines of the ASEAN Summit.
Philippines, UK working on post-Brexit trade deal Philippine Daily Inquirer 26th Aug 2016
The Philippines and the United Kingdom have expressed “mutual enthusiasm” over negotiating for a possible bilateral free trade agreement (FTA), once the Britain’s exit from the European Union has been completed. “We can’t start on formal talks until we formally leave the EU. But on both sides, there is a lot of enthusiasm and that’s why once we have left the EU, then we can move to have an FTA with the Philippines,” said Richard Graham MP, British Prime Minister’s trade envoy to the Philippines. But if so-called “Brexit” has been completed prior to the EU-FTA negotiations, the UK will then have the flexibility to start FTA discussions with the Philippines. An advantage to negotiating on a bilateral basis was that it would be easier, Graham said. Although the UK is not one of the country’s biggest trade partners, Trade and Industry Secretary Ramon Lopez said that the country should strive to improve the situation. Having an FTA with UK gives the country an opportunity to build the relationship in a stronger fashion and enhance trade arrangements because of these concessions.
DTI pursues free trade talks with EU, Chile Inquirer Business 22nd Aug 2016
The Department of Trade and Industry is aggressively pursuing free trade talks with key trading partners, including the European Union and Chile, as it sought to follow through with the gains achieved by the last administration. In an interview, Trade Secretary Ramon Lopez said the DTI would continue to seek preferential trade treatments for more goods and services with the EU in the succeeding negotiations, the second of which was slated for late this year. For Chile, the DTI and its counterparts have started to craft the framework that may become the basis for the start of negotiations for free trade agreement (FTA). According to the trade chief, the DTI and its counterparts in Chile have “finished the joint study and will now start working on the terms of reference to provide a framework for negotiations such as scope and modalities.” As for the second round of negotiations for a Philippine-EU free trade agreement, both parties are expected to “exchange their respective draft texts prior to the second round. Negotiations on market access will start on the third or fourth round of negotiations,” Lopez told the Inquirer.
China, ASEAN aim to complete SCS Code of Conduct framework next year Manila Bulletin 18th Aug 2016
China and a grouping of Southeast Asian nations aim to finish by the middle of next year a framework for a Code of Conduct to ease tension in the disputed South China Sea, Chinese state media said on Wednesday. Since 2010, China and the 10 members of the Association of Southeast Asian Nations (ASEAN) have been discussing a set of rules aimed at avoiding conflict among rival claimants in the busy waterway. Last month, an arbitration court in the Hague ruled that China had no historic title over the South China Sea and had breached the Philippines’ sovereign rights there. The decision infuriated Beijing, which dismissed the court’s authority.
National Affairs
Rody: State of national emergency indefinite The Philippine Star 6th Sep 2016
MANILA, Philippines - It’s not martial law, but the country is under an indefinite “state of national emergency on account of lawless violence.” President Duterte issued the proclamation following the deadly bombing at the Davao City night market that killed 15 people and wounded 70 others. Malacañang said yesterday the declaration does not need Congress’ concurrence, and assured the public that the suppression of lawlessness will be carried out with consideration to due process and respect for basic civil rights. Executive Secretary Salvador Medialdea said the President signed the one-and-one-fourth-page Proclamation Order before he flew to Laos late yesterday afternoon for the Association of Southeast Asian Nations (ASEAN) summit.
Duterte-Obama talks reset Manila Bulletin 6th Sep 2016
Vientiane, Laos – The Philippine bilateral talks with the United States scheduled on the margins of the 28th and 29th Association of Southeast Asian Nations Summits (ASEAN) and Related Summits now being held here has been moved to a later date as President Duterte expressed regret that his comments made about US President Barack Obama have caused much controversy. In a statement read Tuesday by Presidential spokesman Ernesto Abella, on behalf of President Duterte, the meeting between the US and the Philippines has been mutually agreed upon to be moved to a later date.
Rodrigo Duterte’s Anti-American Outburst Complicates U.S. Goals WSJ 6th Sep 2016
MANILA—An anti-American rant by Philippine President Rodrigo Duterte, which he later recanted, cast a shadow on Washington’s bid to bolster ties with Asian allies such as Manila to help offset China’s growing might. U.S. President Barack Obama scrapped a planned meeting with Mr. Duterte in Laos on Tuesday after the outburst, sparking strains with one of Washington’s oldest Asian allies. Mr. Duterte later expressed regret. Still, the U.S.-Philippine tensions contrasted with Mr. Duterte’s apparent determination to improve tattered ties with China. Mr. Duterte, who took office in June, had been set for his first meeting with Mr. Obama at a regional summit in Laos. But before leaving Manila on Monday he reacted angrily to reporter questions about how he would respond should Mr. Obama express concerns about the deaths of more than 2,000 people in an antidrug campaignbeing waged by Mr. Duterte’s administration.
Congress leaders back Duterte’s declaration of state of lawlessness BusinessMirror 5th Sep 2016
LEADERS of the House of Representatives on Monday backed President Duterte’s declaration of state of lawlessness, following Saturday’s bombing in Davao City, which killed 14 people and injured dozens others. In a news conference, Deputy Speaker Gloria Macapagal-Arroyo also condemned the deadly attack and urged the government to extend financial and other assistance to the families of victims. “We support the declaration by President Duterte of a state of lawlessness, following the deadly bombing of a night market in Davao City that led to at least 14 dead and 67 others injured,” she said.
Tough rules forcing small firms to stay off govt radar Business Mirror 5th Sep 2016
THE Congressional Policy and Budget Research Department (CPBRD) has identified several reform measures that lawmakers need to prioritize in the 17th Congress to pave the way for the movement of micro and small enterprises (MSEs) into the formal sector and boost the government’s revenue collection. It noted that today’s complicated business regulations are stifling the sector’s growth and are forcing MSEs to stay off the government’s radar. The CPBRD, in its policy note, said among the reforms needed are the use of simplified tax forms, registration requirements and payment processes; fewer requirements for bookkeeping and financial reporting; integrated national and local government unit (LGU) filing and payment systems to reduce administrative compliance; and cutting the number of trips to government offices and local banks through online and mobile payments.
LIST: Duterte appointees announced on September 1, 2016 Rappler 2nd Sep 2016
Malacañang released a list of the latest appointees of President Rodrigo Duterte on Thursday night, September 1. The new presidential appointees include Bureau of Fisheries and Aquatic Resources DirectorEduardo Gongona, Dangerous Drugs Board chairman Benjamin Panganiban Perez, Agricultural Training Institute Director Alfredo Sarautom Aton, and Office of Civil Defense Director Liza Fidelis Fernandez Cañada. Also in the list are new undersecretaries and assistant secretaries of the interior, agriculture, health, foreign affairs, and trade departments.
Decoding Duterte: Philippine leader’s flip-flops sow confusion BusinessMirror 31st Aug 2016
Whether Philippine President Rodrigo R. Duterte aims to shock, inspire or just amuse, deciphering his blunt and often unpredictable rhetoric is a potential challenge for investors seeking policy clarity from the new leader....Either way, here are seven matters on which President Duterte has appeared to flip flop since he came to power.
Alvarez: Office of President reviewing draft EO creating Constitutional Commission BusinessMirror 31st Aug 2016
SPEAKER Pantaleon D. Alvarez has said the Office of the President is now reviewing the draft of an executive order (EO) creating the Constitutional Commission (Con-com). Alvarez said creating a Con-com will help Congress, acting as constituent assembly (Con-ass), in amending the present Constitution to change the present unitary form of government to a federal system. During Philippine Constitution Association (Philconsa) membership meeting last Tuesday, the speaker said he has sent to Malacañang for President Duterte’s approval his proposed executive order creating a 25-man Constitutional Commission.
Senate starts scrutiny of P3.35-trillion 2017 budget bill BusinessMirror 30th Aug 2016
The Senate Finance Committee on Tuesday started scrutiny of the voluminous P3.35-trillion national budget for 2017 submitted by Malacañang for congressional approval to bankroll President Duterte’s “Real Change” agenda to spur investments, create more jobs and disperse wealth. “As we express our support to the administration’s programs, your Committee on Finance will, likewise, ensure that it will scrutinize the national budget of 2017 in a manner that is transparent and consultative,” Sen. Loren B. Legarda, panel chairman, said in opening the Senate’s budget hearings on Tuesday.
Malacañang defends draft FOI exceptions CNN Philippines 30th Aug 2016
Metro Manila (CNN Philippines) – Malacañang defended Tuesday the draft list of 166 exceptions in the Executive Order (EO) on Freedom of Information (FOI) – as critics say the exceptions make for less transparency in government. Among the issues in the EO is Exception 152 that allows the media access to the Statement of Assets, Liabilities and Net Worth (SALN) of public officials, but bars the release of SALNs for commercial use and “purposes contrary to morals or public policy.” This provision was lifted from Sec. 8 of Republic Act 6713 or the “Code of Conduct and Ethical Standards for Public Officials and Employees.” Presidential Spokesman Ernesto Abella said in a press conference that the SALN provision is “a safeguard against the malicious use of information.”
Duterte names Paynor as PH ambassador to U.S. CNN Philippines 30th Aug 2016
Presidente Rodrigo Duterte told reporters on Monday that he had named Palace protocol chief, Marciano Paynor, to the post in Washington, D.C. Duterte, who had a hectic start of the week flying from Manila to Visayas and then back to the capital for two more events in the evening, said Paynor had already accepted the position. He will be replacing Jose Cuisia. Meanwhile, protocol deputy chief Robert Borje will assume Paynor's post.
Government, NDF peace panels OK 3 of 5 key issues The Philippine Star 25th Aug 2016
MANILA, Philippines – Three of five key issues have been resolved in the ongoing peace talks between the government and the National Democratic Front (NDF) in Oslo, Norway. The two panels agreed yesterday on a formal commitment to accelerate the process of signing a political settlement while President Duterte is still in office. The accelerated process for negotiation includes the timeline for the completion of the remaining substantive agenda for the talks, socio-economic reforms, political and economic reforms and end of hostilities and disposition of forces as well as the establishment of the Joint Monitoring Committee.
House eyes 12 states under a federal government BusinessMirror 22nd Aug 2016
A leader of the House of Representatives on Monday assured the public that all regions of the country will be equally represented in the discussions on the proposed Charter change (Cha-cha) leading to a federal form of government. Deputy Speaker Raneo E. Abu of Batangas told a news conference this was the reason the House has named 12 deputy speakers to represent the 12 Philippine states to be created when the country shifts to federalism. “These 12 deputy speakers were named in preparation for the Charter change and for the adoption of a federal form of government. We will regionalize the House of Representatives and these deputy speakers will lead [each region] in all talks and discussions regarding the proposed changes. They will also determine what studies are needed to be done,” Abu said.
Customs
BOC chief assumes sole control over suspension, cancellation of PH importer, broker accreditation PortCalls Asia 7th Sep 2016
The customs commissioner, or his designated representatives, is now the only official at the Philippine Bureau of Customs (BOC) with the authority to suspend or cancel the accreditation of importers and customs brokers. Customs chief Nicanor Faeldon announced the directive in an August 30 memorandum to employees and officials of the agency. Previously the accreditation of importers and customs brokers may be suspended or cancelled if, among others, the Account Management Office (AMO) discovers, during the application process, any inaccuracy in any of the documents submitted. Faeldon’s order was issued after the Office of the Commissioner received several reports that “unscrupulous AMO personnel have been using the threat of suspension or cancellation of accreditation of importer or broker, citing CMO 11-2014, to harass, intimidate, and extort from said importers and brokers.” CMO No. 11-2014 contains the revised guidelines for registering importers and customs brokers with the BOC.
BOC employee caught on camera accepting money Rappler 5th Sep 2016
An employee of the Bureau of Customs is now under investigation after being spotted accepting money in his office, through the BOC's newly installed closed circuit television (CCTV) cameras. Customs Commissioner Nicanor Faeldon told reporters about the incident on Monday, September 5, as the BOC formally launched its CCTV command center at the Port of Manila. Around 100 cameras have been installed in the BOC's offices as part of efforts to promote transparency. Live streaming became available to the public this month, for a limited number of users at a time. The employee seen accepting money is the first to be spotted via the CCTV system conducting what seems to be a suspicious transaction. His name is being withheld pending results of the probe. "We are still validating, but his face was obviously seen," Faeldon said. "We have to check what he was getting and what was that for. That should not be supposedly the case in that office." The BOC chief explained that clearance payments for shipments are paid through banks, not through the bureau's employees.
Automating BOC to cost P5B The Manila Times 5th Sep 2016
The Bureau of Customs (BOC) needs P5.21 billion over three years beginning 2017 to modernize its technology environment as decreed by the Customs Modernization and Tariff Act (CMTA), according to a roadmap and master plan crafted by a former official. The budget will cover technology upgrades to automate frontline services and enhance administrative and technology management, according to the Technology Modernization Roadmap and Master Plan 2016. Created by former Management Information System and Technology Group (MISTG) Deputy Commissioner Dennis Reyes, the roadmap is a systemic and holistic guide to modernizing the critical technology infrastructure and enterprise systems of BOC as mandated under Section 109 of Republic Act 10863 or the CMTA. According to the roadmap, manual processes and inefficient technologies are actually affecting the BOC’s operations and revenue collections.
Customs firms up collection targets philstar.com 4th Sep 2016
MANILA, Philippines - The Bureau of Customs may have met its collection goal for August given sustained double-digit growth in revenues and with two more ports yet to turn in their financial reports. Based on preliminary data, the Customs bureau collected P32.65 billion in August, already accounting for 95.2 percent of its P34.308 billion goal for the month. The amount represented an increase of 27.56 percent from the P26.89 billion recorded a year ago. “(This) may still increase since data from other departments and ports keep coming in,” the BOC said in a statement Friday. Ports in Tacloban in Leyte and Aparri have yet to submit their revenue reports. The BOC traditionally accounts for a fifth of state revenues.
Activities in Customs main office now live online Manila Bulletin 1st Sep 2016
The Bureau of Customs (BOC) yesterday launched the online streaming of closed-circuit television (CCTV) footages in and out of the main BOC building. The soft launch of the livestreaming enables the public to view activities inside offices, including that of Commissioner Nicanor Faeldon, in a bid to further promote transparency in the Bureau. According to BOC, the livestream can be accessed through public IP address 119.92.124.28, and can be viewed by anyone both on computers and smartphones. The online streaming is being controlled in the Bureau’s CCTV command center, which receives images from around 40 cameras installed inside and outside the BOC main building.
EDC urges removal of non-tariff measures to boost PH exports Manila Bulletin 29th Aug 2016
The Export Development Council (EDC) has identified concerns for exporters to overcome non-tariff measures (NTM), including those concerning sanitary and phytosanitary standards (SPS), fumigation testing, and labeling requirements. The EDC’s technical working group (TWG) on non-tariff measures met recently to find ways to boost the export competitiveness of micro, small, and medium-sized enterprises (MSMEs) stymied by burdensome NTMs. NTMs are policy measures other than ordinary customs tariffs that can potentially have an economic effect on international trade in goods, changing prices or quantities traded, or both. On the difficulty of exporters to comply with SPS because of high fumigation costs, the group pointed to the scarcity of fumigation firms in the Philippines as one of the reasons for this. In one region, for instance, a lone fumigation company serves the whole area’s needs, and the lack of competition allows the firm to monopolize business and impose high prices.
Weekly consults on Customs Modernization Act IRR starts Aug 25 Port Calls Asia 22nd Aug 2016
Fourteen priority provisions under the Customs Modernization and Tariff Act (CMTA) have been selected by the Philippine Department of Finance (DOF) and its attached agency, the Bureau of Customs (BOC), to be the subjects of weekly public consultations until December. Feedback from the hearings will be used as a guide in drafting the new law’s implementing rules and regulations (IRR). Priority provisions are those pertaining to de minimis; advance ruling system; alert orders and risk management in customs control; customs bonded warehousing system; post clearance audit; balikbayan boxes; conditionally tax and duty-exempt importation by balikbayans, returning residents, and overseas Filipino workers; duty drawback, refund and abatement; treatment of different types of stores, clearance of postal items, travelers, and baggage processing; entry lodgment and cargo clearance process; abandonment kinds and effects; Authorized Economic Operator scheme; dispute settlement and process; and export cargo clearance and issuance of rules of origin.
Court case hamstrings implementation of CMTA provision on automation Port Calls Asia 22nd Aug 2016
While the new Customs Modernization and Tariff Act (CMTA) has mandated automation at the Bureau of Customs (BOC), this may not see immediate implementation as the agency remains embroiled in a court case involving a multi-million peso computerization program. At a stakeholders’ consultation on the drafting of CMTA implementing rules and regulations, DOF assistant secretary Denise Marie Riesa Culangin admitted the BOC can’t do much while the case involving P650-million Integrated Enhanced Customs Processing System (IECPS) and National Single Window (NSW) Phase 2 project– programs specifically designed to advance BOC’s automation processes–remains hanging. The Supreme Court early this year issued a temporary restraining order against a Manila regional trial court decision that prevented the BOC and the Department of Budget and Management-Procurement Service from cancelling the awarding of a BOC.
Philippines lifts curbs on rice imports The Philippine Star 3rd Sep 2016
MANILA, Philippines - The Philippines is finally lifting the import curbs on rice after a series of extension on the imposition of quantitative restriction on the country’s most important staple crop over the past few years, an official of the National Economic and Development Authority (NEDA) said. NEDA director Reynaldo Cancio told participants of a conference call organized by the Investor Relations Office late Thursday the Duterte administration has decided to import more rice by removing the QR on the product. “Last week, the Cabinet decided to end the quantitative restriction on rice,” Cancio said.
BoC collections, anti-corruption efforts picking up’ BusinessWorld 22nd Aug 2016
THE Bureau of Customs (BoC) is far behind its P406-billion revenue target this year but catching up may be possible as anti-corruption efforts go into full swing, Commissioner Nicanor E. Faeldon said. In a briefing at Malacañang on Monday, Mr. Faeldon said the bureau’s revenue target remains “doable” and expects the bureau to stage a recovery by December as things are now beginning to “pick up.”
BOC gets list of alleged big-time smugglers Manila Bulletin 18th Aug 2016
A consumer group on Tuesday submitted to the Bureau of Customs (BOC) a list of suspected big-time smugglers, urging Commissioner Nicanor Faeldon to immediately address the issue of corruption plaguing the agency. The United Filipino Consumers and Commuters (UFCC) as well as Volunteers Against Crime and Corruption (VACC) submitted documents to the BOC, naming around 30 individuals linked to the smuggling of cement and other imported products.
Defense & Security
Philippines Posts Record Defense Budget for Second Straight Year Chinatopix 6th Sep 2016
The Philippines, whose military is one of the weakest among the 10 countries in the Association of Southeast Asian Nations (ASEAN), will again boost its defense budget to a new record level in 2017 as tensions stoked by China continue to simmer.
Gov’t facing the enemy Manila Bulletin 5th Sep 2016
Palace tells public not to succumb to fear amid bombing. Malacañang called on the people yesterday not to succumb to fear even as it assured that security forces are keeping guard against the “faceless enemy” behind the night market blast that killed 15 people and wounded 71 others which authorities believe to be “80 percent” the handiwork of terrorists. President Duterte held an emergency meeting with the Cabinet security cluster, police, and military officials in Davao City early Sunday morning to tackle the government’s strategy against security threats.
Military command highly active in territorial defense operations Update Philippines 28th Aug 2016
Aside from internal security operations, the Eastern Mindanao Command (EMC) has been also active in territorial defense operations, especially in the naval and aerial phases. This was disclosed by EMC commander Lt. Gen. Leonardo B. Guerrero as the command celebrated its 10th founding anniversary last Friday at Naval Station Felix Apolinario, Panacan, Davao City.
Palace wants stronger security ties with Indonesia, Malaysia The Philippine Star 18th Aug 2016
President Duterte is expected to attend the Association of Southeast Asian Nations (ASEAN) summit and related meetings in Laos next month, but Malacañang is hoping he will visit Malaysia and Indonesia first to further strengthen the country’s security agreement with Kuala Lumpur and Jakarta to address terrorism and other transnational crimes, particularly in Mindanao. In a press briefing yesterday, presidential spokesman Ernesto Abella said Duterte would rather skip the official visits to the ASEAN countries but was aware of the “tradition” for a new president. Abella said they were also preparing for the country’s chairmanship and hosting of the ASEAN summit and related meetings next year.
Economics
PH imports rise by 15.4% in June 2016 Rappler 25th Aug 2016
The Philippine economy maintained its appetite for imports in June and ended the first half of the year as one of Asia's most import happy countries. Data released by the National Economic and Development Authority (NEDA) on Thursday, August 25, showed that merchandise imports rose by 15.4% in June 2016 with total payments hitting $6.9 billion, up from $5.9 billion in June 2015. The Philippines also outperformed neighbors Vietnam (1.9%), Malaysia (-1.0%), Indonesia (-6.8%), India (-7.3%), China (-8.4%), and Thailand (-10.1) for the month, according to the Philippine Statistics Authority.
GOCCs to compete less with private firms -- DoF BusinessWorld 22nd Aug 2016
THE DEPARTMENT of Finance (DoF) is looking to remove the commercial functions of some government-owned and-controlled corporations (GOCCs) and will continue its privatization efforts in a bid to raise revenue. Finance Secretary Carlos G. Dominguez III said yesterday that government firms should only have regulatory functions.
Strong Q2 growth boosts index The Philippine Star 19th Aug 2016
The stock market posted modest gains yesterday on the back of strong second quarter economic growth of seven percent. The benchmark Philippine Stock Exchange index (PSEi) gained 6.62 points or 0.08 percent to settle at 7,952.81, while the broader All Shares index edged higher by 10.47 points or 0.22 percent to end at 4,707.58.
Energy
Lopez bucks plan to split DENR into two agencies Business Mirror 6th Sep 2016
Environment Secretary Regina Paz L. Lopez on Monday dissuaded lawmakers from passing a law that will divide the Department of Environment and Natural Resources (DENR) into two agencies, stressing that a single body would better ensure that exploitation of mineral resources will not compromise the community’s welfare and other economic activities in a particular area.
Higher taxes on oil products imminent Inquirer 6th Sep 2016
The Duterte administration is bent on raising the excise tax on petroleum products and is now drafting a targeted subsidy scheme similar to the existing conditional cash transfer (CCT) program for poor households to be affected. Finance Secretary Carlos G. Dominguez III pointed out that “contrary to the common perception that fuel excise tax increases would affect the poor the most, DOF studies show that 60 percent of petroleum products are consumed by the top 10 percent of the country’s top income earners.” “In fact, the top 200,000 households [in terms of salaries and income] consumed 20 percent of the fuel products,” said Dominguez, who also heads the Cabinet’s economic cluster. According to Dominguez, revenues generated from the fuel excise tax adjustments would be redirected to those who need financial aid the most through targeted subsidies such as cash transfers and increased spending on social protection programs.
Nuclear policy still a long way to go – experts The Philippine Star 4th Sep 2016
MANILA, Philippines - The Philippines still has a long way to go in forming a nuclear energy policy as it requires government commitment and public awareness and participation, said Energy Secretary Alfonso Cusi. In closing the nuclear energy conference Thursday, he said a lot of work needs to be done before the country can draft its own nuclear energy policy. Nuclear conference chairperson Maria Zeneida Angara Collinson said undertaking a nuclear power program is a sovereign decision borne out of an extensive and comprehensive process involving government and the public sector.
Palace mulls over nuclear option as part of future PHL energy mix BusinessMirror 31st Aug 2016
Pressed to look for new energy sources as economic growth pushes up demand, the Duterte administration is seen harnessing the long-idle $2-billion nuclear plant in Bataan.Energy Secretary Alfonso G. Cusi, appearing before the Senate’s Energy Committee, confirmed the government is studying options and will “consult the people” before giving the greenlight to tap the Bataan Nuclear Power Plant (BNPP), even as senators voiced misgivings about the plan. “We will have a national nuclear policy, we will have one; and we will go through the entire process, including legislation, since this is included on the legislative agenda presented to Congress,” Cusi told reporters after the hearing, adding that upon completion of the study, he will present it first to President Duterte.
DoE to draft nuclear energy roadmap The Standard 31st Aug 2016
The Energy Department said Tuesday it will prepare a nuclear energy roadmap which will include the possible rehabilitation of the mothballed 620-megawatt Bataan Nuclear Power Plant. “We’re coming up with a roadmap… including how we’re going to put that [BNPP] into operation,” Energy Secretary Alfonso Cusi said at the opening of the three-day International Atomic Energy Agency and International Framework for Nuclear Energy Cooperation Conference at Diamond Hotel in Manila. Cusi said nuclear technology could be a “viable choice for the country.” “We are told that on a levelized basis, nuclear power is an economical source high on productivity and reliability, and low on costs and emissions,” the energy chief said. Cusi said a team composed of officials from the Energy Department, National Power Corp. and Philippine Nuclear Research Institute would conduct a study. He said rehabilitating and bringing the nuclear facility into commercial operations would require an investment of about $1 billion. “Among all the studies, the cheapest power source is nuclear. We want to be competitive with the rest of our neighbors, so we have to come up with a cheap source of energy, and that is really nuclear,” he said. Senate president Aquilino Pimentel said the government would need a legislation for nuclear power development.
DOE chief favors nuclear-power generation for PHL BusinessMirror 30th Aug 2016
THE possibility for the Philippines to produce nuclear power is gaining ground, following the pronouncement of Energy Secretary Alfonso G. Cusi on Tuesday that he is in favor of nuclear power, saying this is cheaper than other fossil fuel. “I am not against it. I am open to it. As energy secretary, it is my duty to study all options to ensure a secure power supply for the coming generation,” he said, when asked of his position on the matter. The Department of Energy (DOE) is the host agency in the International Atomic Energy Agency (IAEA) and International Framework for Nuclear Energy Cooperation (Ifnec) conference on the prospects of nuclear power in the Asia-Pacific region.
Nuclear revival in spotlight at IAEA summit BusinessWorld 29th Aug 2016
The Department of Energy (DoE), meanwhile, will not discriminate against nuclear energy or any technology that will bring reliable and affordable electricity as the country’s requirement for power grows, an official of the government office said. Their stand comes as the country hosts this week an international conference on nuclear energy, which could put the spotlight once again on the country’s mothballed nuclear power plant and several attempts in the past to revive it. “We will not disqualify anybody... but we will also emphasize that in that summit we will not be forced by anybody to come up with nuclear power plants,” said DoE Undersecretary Felix William B. Fuentebella. From Aug. 30 to Sept. 1, the International Atomic Energy Agency (IAEA) and the International Framework for Nuclear Energy Cooperation (IFNEC) will be holding a conference in Manila to discuss the prospects of nuclear power in the Asia-Pacific region.
PH to host nuclear energy conference The Manila Times 26th Aug 2016
The Philippines will host the International Atomic Energy Agency (IAEA) and International Framework for Nuclear Energy Cooperation (IFNEC) Conference on the prospects of nuclear power in the Asia-Pacific region from 30 August to 1 September 2016 at the Diamond Hotel in Manila. The event will be spearheaded by the Department of Energy (DOE) as host agency. As part of its commitment to explore all alternative energy resources to ensure supply security and stability, the DOE, together with Department of Foreign Affairs (DFA), Department of Science and Technology (DOST) through Philippine Nuclear Research Institute (PNRI) and the National Power Corporation (Napocor), member-states in the Asia-Pacific region will gather to discuss common issues and challenges related to the introduction of a nuclear power program. Topics to be tackled at the conference include fostering international cooperation in nuclear programs, global status and prospects, legal frameworks, atomic waste management, funding and financing, human resource development and capacity building, social communication for public understanding and even environmental considerations.
2 mining firms to use new soil technology for mine rehab The Philippine Star 26th Aug 2016
The Department of Environment and Natural Resources (DENR) has allowed two mining companies to use activated biochar, a soil amendment technology, to develop agro-forestry in their host communities. The DENR has granted authority to Marcventures Mining and Development Corp. in Surigao del Sur, and Benguet Corp. Nickel Mines Inc. in Zambales to convert agricultural waste into a soil enhancer that can hold carbon, boost food security, increase soil biodiversity and discourage deforestation.
Nickel merry-go-round: Indonesia ferronickel replacing Philippine ore Reuters 25th Aug 2016
An employee works in a ferronickel smelter owned by state miner Aneka Tambang Tbk at Pomala district in Indonesia's southeast Sulawesi province March 30, 2011. No doubt nickel is one of the strongest commodity performers this year, with benchmark London futures rising 13.3 percent from the end of last year to the close on Wednesday. The bulk of that rally has come in the past three months as new Philippine President Rodrigo Duterte and his hard-line environment secretary Regina Lopez cracked down on alleged environmental abuses by the mining industry.
Miners finally see glimmer of hope BusinessMirror 24th Aug 2016
There is hope for the big players in the mining industry, amid the crackdown launched by Environment Secretary Regina Paz L. Lopez versus irresponsible mining operations, with over 100 new projects being reviewed by the Duterte administration. In fact, Environment Undersecretary Mario Luis J. Jacinto said the ongoing mining audit—first thought to be Lopez’s way of curbing mining operations in the country—will eventually benefit large-scale miners who responsibly do business in the Philippines.
LGUGC, WB ink pact to provide solar-power access to 40,000 families in off-grid areas BusinessMirror 24th Aug 2016
The LGU Guarantee Corp. (LGUGC) and the World Bank signed a $15.8 million worth grant agreement to provide solar-energy access to 40,000 poor families nationwide. The Access to Sustainable Energy Project (Asep) grant agreement is supported by a $12.8 million worth grant from the European Union (EU) and $3 million from the Global Partnership on Output-Based Aid (GPOBA). “This project supports affordable, clean energy in the Philippines for those who have no access to the grid,” said Catherine Commander O’Farrell, head of GPOBA. “GPOBA has had a long engagement in the Philippines, working to mainstream results-based financing in the World Bank’s operations to ensure that basic services are extended to poor households.”
Biopower in the Philippines gets financial boost Global Trade Review (GTR) 24th Aug 2016
A group of lenders have raised US$161mn for 70MW-worth of biopower energy projects in the Philippines. The lenders are ThomasLloyd, a cleantech infrastructure fund, the IFC, WBE International Green Energy, the Canadian government and Bronzeoak Philippines, a clean energy developer. The project portfolio includes three separate plants: San Carlos Biopower, South Negros Biopower and North Negros Biopower, all of which are located on Negros Island. The plants will convert sugarcane waste to electricity, using circulating fluidised bed boiler technology, which processes sugarcane that would previously have been burnt in the fields, generating further emissions. The financial sponsor is ThomasLloyd, which has been principally working on energy generation on Negros Island for the past five years. Thomas Coveney, head of project finance, tells GTR that the company financed the first renewable energy project under the government’s 2008 Renewable Energy Act, the San Carlos Solar Energy plant which was inaugurated in 2014. He says that with the “noticeable lack of enthusiasm from the commercial banks in Asia to lend to the development and construction phases of renewable energy”, funds such as ThomasLloyd are reliant on development finance institutions such as the IFC for refinancing and co-financing opportunities. The case for biopower, Coveney says, is strong particularly in developing parts of the world. Using agricultural waste to create energy gives farmers in rural areas both income and secure energy supply and the “go-ahead vision” in the Philippines is allowing the sector to flourish. Coveney encourages other Asian governments to follow suit. He explains the significance of this type of energy to the Philippines: “When we first visited the island in 2010, it produced very little of its own energy. Since our first project, there is now around 300MW of solar power alone on the island, plus more wind in construction. Add to that the base load of our 70MW biomass plants, and you see a significant improvement both in energy mix and energy security for Negros.
WB, LGUGC seal grant for electricity mb.com.ph 24th Aug 2016
The World Bank and LGU Guarantee Corp. (LGUGC) have signed a grant agreement to provide electricity to poor families residing in remote areas of the country. In a statement, the World Bank said that the Access to Sustainable Energy Project grant agreement was signed with LGUGC to allow more than 40,000 poor families without electricity in remote areas to have access to solar energy. The access of households to solar energy is supported with $3 million from the Global Partnership on Output-Based Aid (GPOBA), $12.8 million from the European Union and an additional contribution from the Department of Energy. “This project supports affordable, clean energy in the Philippines for those who have no access to the grid,” Catherine Commander O’Farrell, Head of GPOBA said. “GPOBA has had a long engagement in the Philippines, working to mainstream results-based financing in the World Bank’s operations to ensure that basic services are extended to poor households,” she added. The project targets remote areas and isolated islands whose marginalization is increased by a lack of electricity. A particular focus of the project is conflict-affected Mindanao, where poverty is disproportionately high and over a quarter of the population lives without electricity. The project will be implemented by the private LGUGC in partnership with electric cooperatives. LGUGC, in coordination with other stakeholders, will organize competitive bidding to select private contractors to supply and install the solar home systems (SHS). GPOBA will also disburse output-based subsidies to contractors upon verification that SHSs have been installed and are functioning. “We are working with the IFC-World Bank Lighting Global Initiative to provide quality service under Access to Sustainable Energy Project,” Mara K. Warwick, World Bank Country Director for the Philippines said. “The certified solar packages will ensure not only lighting, but will also provide households with energy efficient appliance packages including televisions, radios, phone chargers, and fans,” she added.
Korean solar farm secures Ilocos energy supply The Standard 24th Aug 2016
To boost the supply of electricity in Ilocos Norte, a one-megawatt (MW) solar energy farm installed in the nearly one-hectare vacant lot at the back of the main office of Ilocos Norte Electric Cooperative (Inec) in Barangay Suyong in Dingras town was recently opened. The Korean Bosung Powertech Philippines Inc. (BPPI was launched in July, witnessed by Ferdinand Villareal of the National Electrification Administration and local officials. Jiang Moon, BPPI president, said the solar farm project which supplies the power distributor in the province has 3,240 sheets of 310 solar modules, a 950-kilowatt inverter, a 1,000-kilovolt-amp step-up transformer and high voltage switch gear. “This is the first renewable energy project of BPPI in the country through a build-operate-transfer which will be turned over to Inec,” Jiang said. He said the $3-million BPPI solar farm is also expected to generate 1.6 megawatt hours’ annual generation and earn P11 million in annual revenue. Inec general manager, engineer Felino Herbert Agdigos, explained that under the mutual BOT scheme, BPPI will turn-over the entire solar farm’s facilities to Inec free of charge after 15 years of operation. “With this new project, the province’s supply of power voltage quality will definitely improve due to the project’s proximity to the distribution system,” Agdigos said. Inec is the country’s first electric cooperative to tap renewable energy. The BPPI project is an addition to two existing solar plants in the province. These are the 7.9-MW solar farm installed by Energy Development Corp. in Burgos town and the 20-MW solar power plant project of Soleq Philippines Inc. in Currimao town.
Philippine miners slam government’s ‘demolition campaign’, seek meeting with Duterte South China Morning Post 24th Aug 2016
Philippine miners claim the government’s environmental crackdown is a “demolition campaign” against mineral producers and want to meet President Rodrigo Duterte amid a spate of shutdowns stemming from the probe, an industry official said. Duterte’s seven-week old government has so far suspended 10 mines, eight of them nickel, for environmental infractions, sowing fear among large-scale miners in the world’s top nickel producer that more shutdowns may follow. Rodrigo Duterte insists Philippines will ‘survive without mining companies’ if they refuse to comply with tighter laws. The country’s mining industry expects to push ahead with US$23-billion worth of new investments from this year through 2020, but this “spirit of optimism is being shattered by ... a very unstable policy outlook,” Benjamin Philip Romualdez, president of the Chamber of Mines of the Philippines, said at an industry conference on Wednesday. “Notwithstanding the ongoing demolition campaign that is maliciously maligning the true nature of legitimate mining, we will not allow anyone, to destroy our industry ... and we will all do this under the rule of law,” said Romualdez. It was the first time that domestic miners have spoken strongly against the government’s tough clampdown. Duterte, who was invited to speak at the conference but did not attend, has previously warned miners to strictly follow tighter environmental rules or shut down, saying the nation could survive without a mining industry. The crackdown on the sector is being led by Environment and Natural Resources Secretary Regina Lopez, an environmentalist who thinks open-pit mining is “madness”.
Incentives seen key to local ore processing BusinessWorld 23rd Aug 2016
Chamber of Mines of the Philippines (COMP) Executive Vice-President Nelia T. Halcon said that miners’ capacity to undertake such ventures, as an alternative to exporting ore, will depend on financing, access to which will improve according to the government’s willingness to encourage investors. “If the government packages the projects with incentives like (those offered by the Philippine Economic Zone Authority), investors will come,” Ms. Halcon told reporters on the sidelines of the opening of a mining conference, where the focus this year is “Realizing the Potentials of the Mining Industry in a New Regime.”
Neda backs DENR drive vs ‘irresponsible’ miners BusinessMirror 22nd Aug 2016
The National Economic and Development Authority (Neda) remains unfazed by the closure of mines under the Department of Environment and Natural Resources’ clampdown on violators of mining laws. Socioeconomic Planning Secretary and Neda Director General Ernesto M. Pernia said that, while there will be workers affected by the closure of these mining companies, mining contributes only less than a percent to the gross domestic product (GDP). “The contribution is only less than 1 percent,” Pernia said. There’s always a way for these workers to shift to gainful employment.”
Negros biomass project gets $161M foreign fund The Manila Times 19th Aug 2016
The International Finance Corporation (IFC), a member of the World Bank Group, with support from the government of Canada and the Clean Technology Fund (CTF), is investing around $161 million (P6.47 billion) for the construction of three biomass power plants in Negros Occidental. The three biomass power plants are expected to generate 70 megawatts of clean renewable energy for the country. The power plants are being built in the towns of Manapla, San Carlos and La Carlota and will convert sugarcane waste to electricity using a low carbon-emitting process called circulating fluidized bed boiler technology. Before it was identified as feedstock for biomass power plants, sugarcane waste was burned in the fields, a practice that contributed to air pollution. The three power plants are expected to qualify for the biomass feed-in-tariff of the Philippines’ Energy Regulatory Commission. The feed-in-tariff is available to energy producers with up to 250 megawatts of biomass generating capacity. IFC country manager Yuan Xu said the Philippines needs to further diversify and secure its energy sources. “Converting agricultural waste to biomass power is a sustainable way of creating economic value while caring for the environment,” she said in a statement released Friday. CTF, a financing instrument under the Climate Investment Funds, provides developing countries with incentives to scale up the demonstration, deployment, and transfer of technologies that have high potential for long-term greenhouse gas emissions savings.
LNG not in PTT expansion plans | Malaya Business Insight Malaya 18th Aug 2016
PTT Philippines Corp. (PTTPC)is focusing on expanding its oil and non-oil retail business only as its current business plan does not include a venture in liquefied natural gas (LNG). However, the company said it remains open in helping the country address its energy requirements in the future. Sukanya Seriyothin, PTTPC president and chief executive officer, said the current business plan is focused on PTT Public Company Limited of Thailand’s(PTTPLC) brand enhancement strategy, with more service stations set to open in the coming weeks including its biggest yet – the PTT Subic-Clark-Tarlac Expressway in Concepcion, Tarlac. “An LNG investment in the Philippines is not incorporated in PTTPLC’s current business plan. But energy sourcing and supply is one of PTT’s endeavors to sufficiently serve Asean appetite and we look forward to an opportunity of cooperation to assist the needs of the Philippines’ energy in the future,”she said. It can be recalled that PTTPLCearlier this year said it is discussing with Filinvest Development Corp., among other firms, a possible partnership for a LNG venture. “We’re just saying that we can invest. We’re at the initial case study. The Philippines still lacks energy supply, that’s why we know the Philippines’ needs for power generation,” Wisarn Chawalitanon, PTT vice president for international marketing, had said. PTTPC expects its present monthly import volume to grow by 200 percent after its planned 300 additional stations in the country is completed through a P3-billion capital expenditure.
Financial Services
Citi, Grab team up on cashless payment Inquirer 7th Sep 2016
GLOBAL banking giant Citi and Southeast Asia’s leading ride-hailing platform Grab have teamed up to promote cashless payments, enticing credit card holders with discounts and freebies and allowing commuters to use their credit card points as currency. The partnership – a first for Asia – will be rolled out in five markets in Asia-Pacific, beginning in the Philippines and Singapore, with Indonesia, Malaysia and Thailand to follow shortly. “By grounding our reputation in safety, quality and availability, Grab is now the trusted, ride-hailing leader in our six markets with one in eight smartphone users in Southeast Asia already on our platform. As customers use Grab for their regular transport needs, many of them are choosing to go cashless by adopting GrabPay for a more seamless ride experience. We are thrilled to partner with Citi to extend its best-in-class loyalty capabilities to make it easier to serve and reward our customers in the region,” Joel Yarbrough, head of payments and commerce product at Grab, said in a joint press statement with Citi.
Government scraps Landbank-DBP merger PhilStar 7th Sep 2016
The Duterte administration has formally dropped the merger of two state-run banks initially pursued by the previous administration. This was after the Governance Commission for Government-owned and -Controlled Corporations (GCG) issued a resolution “cancelling” EO 198 issued by former president Benigno Aquino III. “Both were crated for different purposes. I don’t see any rational reason to put them together,” Finance Secretary and GCG ex-officio officer Carlos Dominguez said in a statement yesterday. Dominguez earlier voiced out opposition to the plan, which would have made Landbank the country’s second biggest lender in asset terms.
BSP plans exclusion of LGU officials from secrecy provisions Business Mirror 6th Sep 2016
The Bangko Sentral ng Pilipinas (BSP) wants elected and appointed government officials to sign waivers allowing authorities to look into their bank accounts, instead of amending the law, to remove their exemptions from provisions of the Bank Secrecy Act covering suspicious transactions. BSP Governor Amado M. Tetangco Jr. raised this option on Monday, as the Senate Committee on Banks, chaired by Sen. Francis G. Escudero, opened hearings on pending bills seeking to amend the New Central Bank Act and the secrecy of bank deposits law.
BSP seeks charter changes anew Business World 6th Sep 2016
THE BANGKO SENTRAL ng Pilipinas (BSP) is again seeking amendments to its charter that has been in place for over 20 years, which, among others, will give the regulator more funds and additional powers. The BSP and some groups of the country’s financial institutions aired their proposed amendments to Republic Act (RA) 7653 or the New Central Bank Act, while expressing their general support to the three Senate bills (SB) on these changes filed by members of the 17th Congress. The BSP is seeking amendments that would improve its corporate viability, monetary stability, and financial stability. Mr. Tetangco cited SB No. 1027 sponsored by Senator Francis G. Escudero, which focused on these three salient features in amending the BSP charter.
Philippines: Disaster insurance plan axed over mandatory nature Asia Insurance Review 2nd Sep 2016
The proposed mandatory catastrophe insurance for all households and micro, small and medium enterprises (MSMEs) has been shelved, the deputy head of the Insurance Commission (IC), Ms Vida Chiong, said. The proposal was dropped following Finance Secretary Carlos G. Dominguez III’s opposition to the mandatory nature of the proposed disaster insurance. “The last time that I heard of it from [Insurance] Commissioner [Emmanuel F. Dooc], Secretary Dominguez is against it,” Ms Chiong told the Business Mirror.
Philippine Peso Completes Best Performance in Asia This Month Bloomberg 31st Aug 2016
The Philippine peso posted the best performance among Asian currencies this month, supported by rising remittances and record-high foreign-exchange reserves. The peso rose 1.1 percent in August to 46.58 per dollar at the close of trading in Manila, its biggest monthly gain since March, according to Bankers Association of the Philippines data compiled by Bloomberg. The currency fell 0.2 percent on Wednesday.
DOF unveils final draft of 4 tax reform packages Manila Bulletin 30th Aug 2016
The Duterte administration will submit to Congress next month four tax reform packages that support programs for infrastructure and human capital, while bringing down the oppressive tax burden on wage earners, Finance Secretary Carlos G. Dominguez III said. Described as “a truly imaginative tax reform package,” Dominguez said the new administration’s proposed measures are consisted of personal income tax (PIT) and consumption tax; corporate income tax (CIT); property tax; and capital income tax.
Philippines: Regulator to issue HMO licensing rules Asia Insurance Review 18th Aug 2016
The Insurance Commission (IC) is set to issue the Guidelines on the Licensing of Health Maintenance Organizations (HMOs) by the end of this month. Insurance Commissioner Emmanuel F Dooc said “We have drafted the proposed guidelines on the issuance of certificates of authority to HMOs and we are targeting to finalise and circulate the same by the end of this month.”
Food & Agriculture
Philippines, China explore trade, infra prospects PhilStar 6th Sep 2016
MANILA, Philippines - Chinese Ambassador Zhao Jianhua recently paid a courtesy visit to Finance Secretary Carlos Dominguez during which the two officials “agreed to explore possible areas of interest” in infrastructure, power, tourism, technology and education, the Department of Finance (DOF) said yesterday. Agency-specific projects were also discussed concerning the departments of Public Works and Highways, Transportation and Agriculture. No details were released for the first two agencies. For the Agriculture department, however, export of Chinese-made agricultural equipment as well as “expansion” of Philippine food exports are being considered. Trade cooperation was also tackled, particularly trade data gaps, as well as efforts to curb the entry of illegal drugs into the country. According to government data, China was the country’s biggest source of imports in June, accounting for 18.8 percent or $1.29 billion of total purchases worth $6.85 billion.
Cacao to see boost from 20,000-hectare target BusinessWorld 6th Sep 2016
Davao Oriental is aiming to have about 20,000 hectares of cacao-growing areas within the next five years and turn the high-value crop into the province’s second top agriculture produce after coconut. Davao Oriental Governor Nelson L. Dayanghirang said part of the province’s goal is to increase production not just by expanding the farms but by improving yield from the current two kilograms (kg.) per tree a year to at least three kg.
Thailand, Vietnam Set to Supply 250,000 T of Rice to Philippines Jakarta Globe 6th Sep 2016
Thailand and Vietnam won deals to supply a total of 250,000 tonnes of rice to the Philippines at a tender on Wednesday (31/08) after revising down their offers to just within Manila's budget. The tender, the first under the two-month old government of President Rodrigo Duterte, is part of the state's plans to import up to 1 million tonnes of rice to secure supply of the food staple through next year while prices are low. Thailand will supply 100,000 tonnes of 25-percent broken rice at $424.85 a tonne, while Vietnam will export the remaining 150,000 tonnes at the same price, according to officials at the Philippines' National Food Authority (NFA). That includes freight, insurance and other costs.
It’s final, NIA returns to Agriculture department -- Piñol BusinessWorld 2nd Sep 2016
PRESIDENT RODRIGO R. Duterte has approved the transfer of the National Irrigation Administration (NIA) back to the Department of Agriculture’s (DA) purview, according to his Agriculture chief. “Let me just make this very clear. The President has already agreed. Secretary [Leoncio] Evasco has already agreed -- that NIA should be brought back to the Department of Agriculture,” said Agriculture Secretary Emmanuel F. Piñol in an interview with reporters late Tuesday.
Duterte admin to scrap rice import quota Philippine Daily Inquirer 2nd Sep 2016
The Duterte administration plans to remove the quota on rice importation. “Last week, the Cabinet decided to end the quantitative restriction (QR) on rice,” National Economic and Development Authority (Neda) Director Reynaldo Cancio told an investor conference call late Thursday. A repeal of Republic Act (RA) No. 8178 or the Agricultural Tariffication Act of 1996, which had kept the QR on rice importation in place, should be pursued to scrap the quota.
Vietnam, Thailand win bid to supply rice to Philippines The Philippine Star 1st Sep 2016
MANILA, Philippines – Vietnam will supply the majority share of the 250,000 metric tons (MT) of the programmed importation for buffer stocking this year after agreeing to match Thailand’s price offer. State-run National Food Authority’s (NFA) government-to-government procurement committee yesterday awarded the supply of a total of 150,000 MT to Vietnam Southern Food Corp., while the supply of a total of 100,000 MT was awarded to Thailand, which was represented by its Department of Foreign Trade.
Groups hit proposed tuna-management plan BusinessMirror 31st Aug 2016
The Philippines should come up with a viable tuna-management plan that would help the country’s fish stocks recover and return to its level in the 1980s, environmental groups said on Wednesday. WWF Philippines and the Alliance of Tuna Handliners and Greenpeace Philippines issued the call at the start of the 18th Tuna Congress in General Santos City. Greenpeace criticized the Draft 2017 National Tuna Management Plan presented by big players of the country’s tuna industry represented by Socsksargen Federation of Fishing and Allied Industry.
NFA releases rice import terms Philippine Daily Inquirer 30th Aug 2016
The National Food Authority has released the terms of reference (TOR) for its importation of 250,000 tons of milled rice on Aug. 31, signed by Cabinet Secretary Leoncio Evasco. The NFA wants the entire volume to arrive and be deposited in various warehouses across the country by the end of October. Of the total volume, two-fifths or 100,000 tons should have arrived by the end of September. The NFA is buying from neighboring, state-run suppliers mainly in Thailand, Vietnam and Cambodia. Southeast Asia is home to some of the world’s biggest exporters of rice as well as some of the biggest importers, including the Philippines. Based on the TOR, the biggest tranche at 80,000 tons should be shipped to Manila, the National Capital Region being the biggest consumer of rice in the country.
‘Biocontrol agents effective vs banana disease’ BusinessMirror 30th Aug 2016
The Department of Agriculture (DA) said it has found an organic way to combat a disease, which causes importing countries to reject shipments of bananas from the Philippines. The Philippine Center for Postharvest Development and Mechanization (PhilMech), an attached agency of the DA, said field trials conducted on biocontrol agents to fight crown-rot disease that usually afflicts bananas showed promise.
Piñol bats for creation of fisheries department BusinessMirror 25th Aug 2016
The Department of Agriculture (DA) on Thursday asked the House of Representatives to prioritize the passage of bills creating the Department of Fisheries and Aquatic Resources (DFAR). During the deliberations for the DA’s proposed 2017 budget, Agriculture Secretary Emmanuel F. Piñol said the creation of the DFAR will ensure the protection of Philippine waters and marine resources and the rights of local fishermen. Citing the 1987 Constitution, Piñol said the State should protect the rights of subsistence fishermen, especially of local communities, to the preferential use of the communal marine fishing resources, both inland and offshore.
IRRI wants Asian rice growers’ action plan Manila Bulletin 25th Aug 2016
The International Rice Research Institute (IRRI) is pushing for rice research and innovation collaboration among rice-growing countries in Asia, in time for an upcoming ASEAN conference on agriculture and forestry in Puerto Princesa, Palawan next week. Dr. Matthew Morell, IRRI director general, said a 10-point action plan before agriculture leaders to ensure that rice remains available and affordable across the region will be introduced, especially amid the challenges brought about by climate change. Morell said the initiative aims to create technology collaboration between the countries that may improve the genetic resources of rice varieties. The venture also hopes to develop rice varieties that are adaptive to region-specific conditions of drought, flooding and salinity.
Proposed agriculture dep't budget lower by P3 billion Rappler 25th Aug 2016
MANILA, Philippines – Despite President Rodrigo Duterte’s promise to revive agriculture, the proposed budget of the Department of Agriculture (DA) for 2017 is P3 billion less than its current funding. For next year, DA has proposed a total budget of P50,553,834,000. This is 6% lower than 2016’s P53,974,476,000 and nearly 30% less the P71 billion budget that Agriculture Secretary Emmanuel Piñol submitted to Malacañang. “We presented a bigger budget, one which would include rice seeds and fertilizers for the rice farmers for the next 3 years because they suffered much from El Niño. That program is called RIGHT – it targets rice self sufficiency by 2019 had it been granted, but it was not. We have to work with whatever we have,” Piñol said during his agency’s budget briefing with members of the House of Representatives on Thursday, August 25.
Piñol vows rice self-sufficiency to aid farmers vs climate change Inquirer.Net 25th Aug 2016
Department of Agriculture Secretary Emmanuel “Manny” Piñol on Thursday said the Duterte administration would push for rice self-sufficiency and protect farmers from the ill-effects of climate change. During the House of Representatives budget hearing on the proposed P50.6 billion budget of the DA and its attached agencies for 2017, Piñol said the country should not rely on importing rice from other countries such as Vietnam, Cambodia, and Thailand. He said these countries also experience the effects of a changing climate and natural disasters.
Rice import tender slated Aug. 31 Manila Bulletin 25th Aug 2016
The Philippines, one of the world’s top rice buyers, is seeking to import up to 250,000 tons of rice from Vietnam, Thailand, and Cambodia in a tender scheduled on Aug. 31, according to a copy of a government document seen by Reuters. The volume is part of the government’s plan to import up to 1 million tons of rice to secure supply through next year while prices are low in top exporters Vietnam and Thailand. The imports would also boost the Southeast Asian nation’s buffer stock ahead of the typhoon season towards the end of the year. Despite the upcoming tender, benchmark rice prices in Vietnam and Thailand remained near multi-month lows. The National Food Authority is looking to buy 25 percent broken rice, with delivery of the first 100,000 tons expected not later than Sept. 30 and the remaining amount not later than Oct. 31, according to the document.
Farm output seen to post growth BusinessWorld 25th Aug 2016
THE DEPARTMENT of Agriculture (DA) is looking at a “positive” growth for the country’s agriculture in the second half of the year after the contraction seen at end-June, as the office’s head pitched legislative priorities for the sector before the House of Representatives yesterday. “We’re looking a positive growth for Philippine agriculture... so far the rice fields are green, our harvest is bumper and everything is turning outright. We are expecting for a positive growth,” Agriculture Secretary Emmanuel F. Piñol said at the sidelines of the 2017 budget deliberations.
Piñol starts talks with South Korean firms seeking to buy high-value goods from PHL BusinessMirror 24th Aug 2016
DEPARTMENT of Agriculture (DA) officials said they are in talks with big South Korean conglomerates that expressed interest in importing high-value products from the Philippines. “These are big conglomerates that expressed interest in our high-value products,” Agriculture Secretary Emmanuel F. Piñol told the BusinessMirror in a telephone interview, referring to South Korean companies engaged in shipbuilding and agriculture that sent representatives to a forum in Baler, Aurora, on Tuesday.
Neda, BSP blame high poverty incidence to poor agriculture yield and credit access BusinessMirror 23rd Aug 2016
High poverty persists in the Philippines due to poor agriculture growth and access to credit nationwide, according to the National Economic and Development Authority (Neda) and the Bangko Sentral ng Pilipinas (BSP). Neda Deputy Director General Rosemarie G. Edillon said poverty rate in 2015 would have been lower by 2.7 percentage points if food prices only posted an annual average of 3 percent between 2012 and 2015. Data from the Philippine Statistics Authority showed poverty incidence among Filipinos in the first semester of 2015 was estimated at 26.3 percent, slightly lower than the previous 27.9 percent.
Lopez to check effects of aerial spraying on banana plantations BusinessMirror 22nd Aug 2016
Environment Secretary Regina Paz L. Lopez has vowed to look into the adverse effects of aerial spraying on banana plantations in Mindanao. The move is in response to complaints on the alleged adverse impact of aerial spraying of pesticides to human health and the environment. According to the Department of Agriculture (DA), banana is the leading fruit grown in the Philippines and a consistent top dollar earner. Persistent infestation by pests and diseases continue to threaten to wipe out the $1.14-billion banana export industry.
Sweetened drinks face new tax BusinessWorld 22nd Aug 2016
House Bill (HB) No. 292, filed by spouses Reps. Horacio P. Suansing, Jr. of Sultan Kudarat’s second district and Estrellita B. Suansing of Nueva Ecija’s first district seeks to insert a section in Republic Act No. 8424, or the National Internal Revenue Code of the Philippines, that will impose a P10 excise tax -- which will increase “by 4% every year thereafter effective January 1, 2017” through revenue regulations issued by the Finance chief -- on “sugar-sweetened beverages per liter of volume capacity.”
PHL eyes regional collaboration on rice in ASEAN Manila Bulletin 19th Aug 2016
MANILA — The Philippines is pushing for a collaboration with ASEAN members and other rice-growing countries in Asia to make rice available and affordable across the region amid challenges posed by climate change. The International Rice Research Institute (IRRI) will present a 10-point Action Plan to the region’s top agriculture policymakers at the annual Senior Officials Meeting-ASEAN Ministerial Meeting on Agriculture and Forestry (SOM-AMAF) conference to be held next week in Palawan.
Taguig City, Bulacan eyed for agri trade centers Manila Bulletin 18th Aug 2016
The government is looking to establish Farmers’ and Fishermen’s Trading Centers (FFTC) in Taguig City and Bulacan province in an effort to provide a facility for food producers coming from the Northern and Southern regions of Luzon. “Farmers need to have a steady location where they can bring in their produce and meet traders,” said Department of Agriculture (DA) Secretary Manny Piñol. Piñol said Taguig City Mayor Lani Cayetano has already approved the idea and is looking forward to the collaboration, which follows the concept of the Food Terminal Incorporated.
Health & Life Sciences
DOH confirms 6th Zika case in Phl Philippine Star 6th Sep 2016
The Department of Health (DOH) has confirmed that a woman from Iloilo City tested positive for the Zika virus, the sixth case recorded in the country. DOH Undersecretary Gerardo Bayugo said that the 45-year-old victim, whose identity has been withheld, has no record of travel to countries where the virus has been detected. Bayugo, however, clarified that there is still no confirmation of local transmission of the virus in the Philippines.
DOH rolls out measures against Zika virus CNN Philippines 1st Sep 2016
Metro Manila (CNN Philippines) – The Department of Health (DOH) is on alert against Zika virus after reports of cases in Singapore and Malaysia. The Bureau of Quarantine continues to screen all passengers at airports using thermal scanners that alert them about travelers with temperatures of 37.5 degrees celsius or higher – a sign of fever. The doctor on duty will double check passengers monitored with high temperatures using a thermometer. Other signs that will be checked are skin rashes, joint pains, sore eyes and travel history to a Zika-affected country to determine if the passenger is a suspect Zika case. Should the passenger be found to be a suspect Zika case, he or she will be taken to the Research Institute for Tropical Medicine in Muntinlupa City for further tests, diagnosis and monitoring.
Duterte takes war on drugs to the stage Bangkok Post 29th Aug 2016
Philippine police, heavily criticised by rights groups for killing hundreds of drug dealers and users, are using a comedy puppet of Rodrigo Duterte to get the president's war on drugs message across to Manila school children. The Philippine National Police began the show, which also features a puppet of police chief Ronald dela Rosa, in Manila schools this month, the latest step in the anti-drug drive of Mr Duterte, nicknamed "the Punisher", who won the presidency in May based on a platform of wiping out narcotics. "I hate drugs, don't do drugs because you are the hope of the country," the Duterte puppet told children at an impoverished community near a large landfill in Manila. Police have also employed a smiling, dancing mascot that looks like Mr dela Rosa to spread the message at other youth events in the Filipino capital, with a comic book also commissioned to encourage children to stay away from drugs.
ICT
DOST pitches local innovations to investors The Manila Times 1st Sep 2016
Philippine innovators recently showcased innovative products to prospective investors in a forum supported by the Department of Science and Technology (DOST). The event, dubbed “Leaders in Innovation Fellowship (LIF) Demo Day”, was held recently at the Asian Institute of Management (AIM) in Makati City by the Royal Academy of Engineering and AIM, with support from DOST. The LIF provided an opportunity for the developers of 15 selected technology products to exhibit and present their ideas, and to locate possible business investors and customers. Prior to the LIF, the innovators underwent courses for 10 months at AIM and in the United Kingdom to hone their entrepreneurial skill set by learning how to develop ideal business plans.
Globe steps up anti-spam campaign The Manila Times 31st Aug 2016
As part of an aggressive initiative so far to counter spam and scam messages, Globe Telecom Inc. is stepping up its fully-automated blocking tool towards the total elimination of annoying and unsolicited messages. “Since August 16, Globe started blocking an average 300,000 spam/scam messages daily coming from both Globe and other networks,” said Anton Bonifacio, Globe chief information security officer. Bonifacio noted 100,000 of the unsolicited messages were from other telcos. The Ayala-led Globe activated in February a fully-automated mechanism to rid its network of spam and scam messages. Under the first phase of the program, the anti-spam mechanism blocked spam and scam messages from Globe network SIMs. Entering into the second phase of the program, Globe enhanced its anti-spamming tool to include messages sent by other network SIMs. “Globe is now a step closer towards totally eradicating the transmittal of spam and scam messages to our customers. The company will continue with the optimization process of the blocking mechanism to stamp out transmittal of such messages whether or not they are coming from the Globe network,” Bonifacio said. The company has already blocked around 50 million spam/scam messages since February when its new blocking tool put to work, with a daily average of 200,000 from the Globe network alone. The enhanced mechanism now covers the company’s more than 2.5 million mobile postpaid customers and the majority of its nearly 59 million prepaid customers. Globe Telecom’s blocking tool consists of a hardware and software solution with complex anti-spam algorithms. It can filter up to 1 billion SMS a day, and be reconfigured to address the specific spam and scam messages that goes through the Globe network.
Globe fast-tracks rollout of LTE sites The Manila Times 29th Aug 2016
IT’S full steam ahead for Ayala-led Globe Telecom in its aggressive deployment of the 700 megahertz (MHz) band by rolling out recently more than 150 sites, mostly in Metro Manila, as part of its commitment to improve mobile internet service in the country. Joel Agustin, Globe senior vice president for program governance, Network Technical Group, said that Globe is fast-tracking the rollout of its LTE service nationwide using the 700 MHz frequency under the co-use agreement approved by the National Telecommunications Commission (NTC). According to Agustin, the LTE 700 sites cover major business districts and highly urbanized and populated areas in the country, noting that customers using LTE 700 devices are steadily increasing in these areas. Citing Quezon City, where Globe activated the first LTE 700 site in the country, Agustin said the technology now covers a majority portion of the city after the LTE 700 sites activated by Globe increased four times from the initial rollout of just 11 sites. The company plans to activate more than 500 LTE 700 sites across the country by the end of 2016, Agustin said.
Tackling vices one by one, Philippines president targets online gaming Reuters 29th Aug 2016
After unleashing a crackdown on drugs, Philippine President Rodrigo Duterte is turning his guns on a booming online gaming industry, abruptly scrapping one firm's 13-year monopoly this week and denouncing its billionaire chief as a corrupt oligarch. Until recently, Filipinos could gamble in licensed online cafes, as well as casinos, but Duterte refused to renew the exclusive license of the operator of more than 300 such cafes, Philweb Corp, after its permit expired on Wednesday. "With the strong and repeated pronouncement of the president, there is no choice," Andrea Domingo, head of Pagcor, the state regulator of casinos and online gambling, told Reuters. Last week, Duterte, nicknamed 'the Punisher,' singled out Philweb’s chairman, Roberto Ongpin, one of the richest men in the southeast Asian nation, as an example of an oligarch who benefited while the poor suffered.
Use of e-commerce pushed BusinessWorld 2nd Sep 2016
MICRO, SMALL and medium enterprises (MSMEs) underutilize the e-commerce platform despite the influx of start-ups that offer services that help small businesses set up shop online, a senior official at Voyager Innovations, Inc. said on Thursday. “I think there’s a gap in terms of the platform providers and those move them obviously. I think [the gap is] mainly because of the lack of Internet connection. They’re not so much aware of these existing platforms already,” said Dindo G. Marzan, managing Director and head of Voyager Business.
National Privacy Commission promulgates IRR of Data Privacy Act of 2012 BusinessWorld 31st Aug 2016
Republic Act No. 10173, or the Data Privacy Act of 2012 (DPA), was principally authored by former Senator Edgardo J. Angara during his chairmanship of the Senate Committee on Science and Technology, and passed into law in 2012. Following a series of public consultations held between June and August 2016, the National Privacy Commission (NPC) promulgated the Implementing Rules and Regulations (IRR) of Republic Act No. 10173 last Aug. 24, 2016. Republic Act No. 10173, the full title of which is “An Act Protecting Individual Personal Information in Information and Communications Systems in the Government and the Private Sector, Creating for this Purpose a National Privacy Commission, and for Other Purposes,” declares as State policy the protection of the right to privacy and communication while ensuring the free flow of information to promote innovation and growth.
Salalima: ICT ‘fast becoming’ Philippines’s top dollar earner BusinessMirror 31st Aug 2016
LEGAZPI CITY—Information Secretary Rodolfo A. Salalima on Tuesday said the information and communications technology (ICT) industry is fast becoming the country’s top dollar earner and its capacity to generate jobs is projected to surpass the big dollar remittances of overseas Filipino workers (OWFs) to the Philippines. Salalima said the fast-growing ICT industry may be attributed to the emergence of hundreds of major players putting up businesses in various capital cities and towns across the country. He said the “driving forces” of the industry are the business-process outsourcing (BPO) firms, software developers, Internet-service providers, telecommunication companies and educational institutions.
Court stops review of major telco deal BusinessWorld 31st Aug 2016
In an August 26 resolution released to journalists yesterday, the 12th Division of the Court of Appeals (CA) granted the July request of PLDT, Inc. (formerly Philippine Long Distance Telephone Co.) for a temporary restraining order or a preliminary injunction on the Philippine Competition Commission’s (PCC) review of the sale by San Miguel Corp. in May of its telecommunication assets to PLDT and Globe Telecom, Inc. for a total of P69.1 billion. The move for injunction formed part of a petition for the court to declare PCC’s review and/or investigation of the acquisition null and void.
Govt to free up frequency to allow new telco player BusinessMirror 29th Aug 2016
IN a bid to ease the suffering of disgruntled Filipino consumers, the information and communications department will review the usage of radio frequency of existing local telecommunications companies, warning carriers of the possible repossession of slices of spectrums if found unused. Information Secretary Rodolfo A. Salalima said the audit will allow the government to seize unused frequencies and auction them off to budding companies to heighten competition. “We may recover whatever frequency they are not using. The review will take into account the contracts signed between them and the government as to the expiration of frequencies,” Salalima told the BusinessMirror.
Infrastructure
Gov’t seeking crisis powers, P1.2 trillion to address traffic BusinessWorld 5th Sep 2016
THE DEPARTMENT of Transportation (DoTr) has submitted to the Senate a bill that will grant emergency powers to the President for up to three years as well as a list of some P1.2 trillion worth of land, air and sea projects “to address the traffic and congestion crisis” now gripping Metro Manila “and other highly urbanized cities and areas in the country.” The draft bill and the list of projects -- totaling 64 pages -- were submitted on Sept. 2, according to a letter to Senator Grace Poe, who heads the Senate Committee on Public Services as chairperson, that was signed by Transportation Secretary Arthur P. Tugade and e-mailed to journalists yesterday.
Duterte administration backs creation of DHUD BusinessMirror 31st Aug 2016
The Duterte administration supports proposals to create a housing department to fast-track the implementation of programs aimed at wiping out the housing backlog, according to the country’s economic planners. In a budget hearing at the Senate on Wednesday, Budget Secretary Benjamin E. Diokno said the Cabinet has already decided to create the Department of Housing and Urban Development (DHUD). Under the current setup, the Housing and Urban Development Coordinating Council (HUDCC)—which oversees the implementation of the government’s housing programs—does not have a budget. Six housing agencies under the HUDCC are given a budget, but the council does not have a say on how it is spent.
Local invention may provide rapid solution to PHL’s mass-transit woes BusinessMirror 31st Aug 2016
BELIEVE it or not, a Filipino rapid-bus transit invention has become a worldwide phenomenon by easing up traffic congestion in 136 cities in 39 countries. The same Philippine-made system, copyrighted and patented 27 years ago, helped propel their respective economies to new heights. But why is it not happening here? Filipinos always turn their back on things Filipino until they are recognized and proven abroad. Most recently, the US Department of Transportation announced a budget of $77 million to expand rapid-bus transit service in Eugene, Oregon. This year, this service was also introduced in the Minneapolis-Saint Paul, US, area. And Perth, Australia, followed for a faster trip and improved city-commuting experience.
DOE sees nuke energy potential The Manila Times 30th Aug 2016
The Department of Energy (DOE) is looking at the viability of nuclear energy as the Philippines intensifies its electrification programs amid increasing population and strong economic growth. DOE data showed that demand for electricity is expected to grow by an average of 5 percent per year until 2030, or around 126 terrawatthours (TWh) from the 2015 level of 82 TWh. “To meet this requirement, we have to weigh all our options, with emphasis not just on meeting capacity requirements, but sustainability and environmental obligations as well,” Energy Secretary Alfonso Cusi said on Tuesday during the International Atomic Energy Agency (IAEA) Conference on the Prospects of Nuclear Power in the Asia-Pacific Region.
Grant of emergency powers faces delays BusinessMirror 30th Aug 2016
Transportation Secretary Arthur P. Tugade lamented on Tuesday that implementing his solutions to the traffic mess in Metro Manila may face delays should lawmakers fail to grant President Duterte and his department so-called emergency powers. Tugade issued the statement as Sen. Grace Poe on Tuesday said she will not reconvene the Senate Public Services Committee hearings until Cabinet officials identify and provide details of the projects proposed to be covered by President Duterte’s emergency powers being sought from Congress by Malacañang.
Metro Pacific interested in 2 PPP projects The Standard 29th Aug 2016
The tollway unit of Metro Pacific Investments Corp. said it is interested in joining the auction of two expressway projects north of Manila under the public private partnership scheme. “We are looking at the PPP projects in the pipeline that are interesting to us like the Plaridel Bypass. We heard that they want to submit it to Neda board next month,” said Metro Pacific Tollways Corp. president and chief executive Rodrigo Franco. The Investment Coordination Committee-Cabinet Committee of the National Economic and Development Authority endorsed the P9.33-billion Plaridel Bypass Toll Road Project to the Neda board, which is chaired by President Duterte.
Rail projects in the pipeline increasing BusinessWorld 29th Aug 2016
A South Korean firm has suggested a Light Railway Transit (LRT) line that would connect the busy Visayan metropolis, foster its development and, consequently, provide an alternative hub for workers and businesses, National Economic and Development Authority (NEDA) Director-General Ernesto M. Pernia told reporters last week. “The Cebu LRT is an unsolicited proposal... raised to the DoTr (Department of Transportation) and also to the Cebu authorities. Putting more infrastructure in Metro Cebu would draw investors, workers and businessmen away from Metro Manila to Cebu, because Cebu is also a very attractive metropolitan area,” Mr. Pernia said.
VP sees completion of citizens’ housing charter by November if… BusinessMirror 24th Aug 2016
To speed up the government’s efforts to address the country’s housing backlog, the Housing and Urban Development Coordinating Council (HUDCC) intends to come up with a citizens’ charter for the housing sector within the year. Vice President and HUDCC Chairman Maria Leonor G. Robredo said the charter will include information on fees, requirements and processing time. She added that the HUDCC may be able to release the charter as early as November, only if the lineup of officials in the six shelter agencies will be completed by October 1.
Philippines to fast-track approval of more infrastructure projects Asia Times 23rd Aug 2016
Philippine infrastructure projects worth 5 billion pesos ($107.5 million) and less will no longer require the economic planning agency’s go-ahead, the government said on Tuesday, a change that it hopes will quicken the approval process. The Southeast Asian nation, the fastest-growing economy in Asia, is overhauling its notoriously creaky infrastructure with new roads, bridges, airports and trains. File photo of vehicles as they drive past the expressway in Cavite, south of Manila December 7, 2011. REUTERS/Cheryl Ravelo “We are ramping (up) infrastructure investment in the other regions without, of course, stifling needed infrastructure projects in Metro Manila,” Ernesto Pernia, director general of the National Economic and Development Authority, told a news conference. Infrastructure projects that cost 5 billion pesos and lower, up from the previous level of 1 billion pesos, will be rolled out more quickly.
Gov’t speeds up infrastructure decisions BusinessWorld 23rd Aug 2016
The proposed P3.35-trillion 2017 national budget the Executive submitted to Congress on Aug. 16 -- which is 11.6% more than the P3.002 trillion approved for 2016 -- earmarks P860.7 billion for public infrastructure (equivalent to 5.4% of gross domestic product, or GDP) that is 13.79% more than this year’s P756.4 billion (5.1% of GDP).
EDSA as priority line for subway plan urged BusinessWorld 22nd Aug 2016
The Management Association of the Philippines (MAP) in a statement Monday said it “welcomes and supports” the government’s plan of constructing a multi-line subway system for Metro Manila. In a statement, MAP suggested EDSA as the priority line for a mass transit subway system that would “transform EDSA into a world class efficient, less-vehicle centric, calmer and pleasant tree-lined pedestrian friendly avenue.” “This initiative provides the catalyst for both the public and private sectors to focus and engage in a discourse on this ultimate mass transit option,” it said yesterday.
Cebu Island toward a Megalopolis The Manila Times 18th Aug 2016
Metropolitan Cebu is one of the cities that can bring our country well into the 21st century. It has the opportunity to transform and adopt the best practices that we can learn around the world in terms of planning, land use, and mobility. It is also in a position to learn from the mistakes of Metro Manila and make sure not to repeat it. Metropolitan Cebu has the capacity to surpass the national capital region, in terms of economic output, livability, sustainability and resiliency, if as early as now it realizes the importance of good architecture, good urban planning, as well as comprehensive land use plan, transportation/mobility plan, tourism plan, disaster preparedness plan, security by design, and urban design.
Transport deparment pushes Metro subway project The Philippine Star 18th Aug 2016
The Department of Transportation wants to pursue the subway that would connect business districts in Metro Manila as well as expand the scope of the public-private partnership (PPP) project for the Light Rail Transit Line 2 (LRT-2). Noel Kintanar, Transport undersecretary for rail said the government is looking to implement various railway projects. Among the rail projects being eyed is Line 5 or the subway that would connect the business districts in Metro Manila to ease congestion on roads.
Energy Efficient Train Could Foster Philippine Railway Industry AEC News Today 18th Aug 2016
The Philippines could soon emerge as a major supplier of energy efficient trains following the recent unveiling and testing of a Philippine-made hybrid electric train. Developed by a team of Filipino engineers and technicians at the Department of Science and Technology’s (DOSTs) Metals Industry Research and Development Center (MIRDC), the P120 million (US$2.5 million) energy efficient train commenced development in 2013. Last month the DOST rolled out the first prototype at the Philippine National Railways (PNR) Tutuban station, with then-DOST secretary Mario Montejo noting that the end result showed that the Philippines is not lacking in engineering talent and capabilities. “It’s high time we gave recognition to the fact that we are fortunate to have the best engineering and technical minds in the country”, Mr Montejo said.
Manufacturing
Small auto parts makers to BoI: Don’t leave us out of CARS scheme BusinessWorld 6th Sep 2016
The Philippine Parts Maker Association, Inc. (PPMA) expressed concern that CARS’ implementing rules and regulations (IRR) were “ambiguous” about the Fixed Investment Support incentive and could leave small players out of the scheme. “It’s not clearly defined on how the fiscal incentive will trickle down to parts makers because the IRR applies that tax certificate will be given to the car assemblers. And then supposed to be, the car assemblers will divide it to participants,” Ferdinand I. Raquelsantos, PPMA president, said in a phone interview yesterday.
PHL manufacturing sector among best in Asia Pacific during August BusinessMirror 3rd Sep 2016
THE Philippines emerged as one of the countries in the region with the strongest growth in the manufacturing sector in August, as the country’s Purchasing Managers’ Index (PMI) bucked the regional trend of weak trade and production in recent months. Data compiled by HSBC showed the Philippines had the highest PMI in Asia Pacific in August, despite the slight dip from the previous month. The PMI is a composite index, calculated as a weighted average of five individual subcomponents. The components include new orders—which weigh the most at 30 percent of the index; output, which is 25 percent of the index; employment, 20 percent; suppliers’ delivery times, 15 percent; and stocks of purchases, 10 percent.
PHL factories outdo SE Asian peers BusinessWorld 2nd Sep 2016
Marking a strong debut in the Nikkei ASEAN Manufacturing PMI, the Philippines last month registered a seasonally adjusted purchasing managers’ index (PMI) of 55.3, suggesting that the country’s manufacturing sector remains on growth mode through the third quarter. The manufacturing PMI is a composite index of five sub-components, with new orders having the biggest weight at 30%, followed by output (25%), employment (20%), suppliers’ delivery times (15%) and stocks of purchases (10%). A PMI reading above 50 points to an improvement in business conditions, whereas a score below that threshold suggests a deterioration.
Electronics association downplays import drop BusinessWorld 29th Aug 2016
“I’m not alarmed with lower imports,” Danilo C. Lachica, president of SEIPI, said in an August 26 mobile phone message, explaining: “It’s inventory correction.” Philippine purchases of electronic components, which are used in turn to make electronics exports that make up half of total outbound shipment of goods, suffered a 15.8% decline to $1.697 billion last June from $2.016 billion in the same month last year. Electronics imports made up 24.8% of the total import bill in June.
Slump in electronics demand to dampen imports growth BusinessMirror 25th Aug 2016
The National Economic and Development Authority (Neda) is concerned that weak electronics demand could dampen the country’s external trade growth in the coming months. Neda Director General and Socioeconomic Planning Secretary Ernesto M. Pernia said, however, strong construction activity and consumption spending in the second half of the year could boost trade.
Industry group expects record PH auto sales for 2016 Philippine Daily Inquirer 23rd Aug 2016
The Philippine automotive industry expects another banner year as vehicle sales are forecast to reach a high of 360,000 units in 2016, on the back of rising incomes, stronger appetite from the domestic market, and improving local economy. The new forecast—which reflected a 12.5-percent increase in vehicle sales compared to the 320,000 units sold last year—was slightly higher than the 350,000-unit target issued by the Chamber Manufacturers of the Philippines Inc. (Campi) earlier this year.
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